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Although","page_number":20,"box":{"x":116,"y":429,"width":665,"height":11}},{"id":"c6880a3a-0db0-4149-a69e-b35ef19e2a95","block_type":"box","text":"BlackRock Managed Volatility V.I Fund may invest in these commodity-related instruments directly,","page_number":20,"box":{"x":116,"y":444,"width":689,"height":12}},{"id":"3282277b-6222-4819-a084-02cb8bf452a5","block_type":"box","text":"BlackRock Managed Volatility V.I Fund will likely gain exposure to these commodity-related instruments","page_number":20,"box":{"x":116,"y":460,"width":723,"height":11}},{"id":"96f7e6f6-a391-4bbe-9001-c825f788d8ac","block_type":"box","text":"indirectly by investing in the Managed Volatility Subsidiary. 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BlackRock Managed Volatility V.I Fund’s Annual and Semi-Annual Financial Statements and","page_number":20,"box":{"x":116,"y":754,"width":693,"height":12}},{"id":"5c813960-e1ba-4c5b-86d9-b3ba22e840c6","block_type":"box","text":"Additional Information are filed with the SEC on Form N-CSR and are provided without charge upon request as","page_number":20,"box":{"x":116,"y":770,"width":757,"height":11}},{"id":"1fb8986c-7778-4408-9e55-aa68a384ea8a","block_type":"box","text":"indicated on the front cover of this SAI.","page_number":20,"box":{"x":116,"y":785,"width":267,"height":9}},{"id":"690b810e-d8c2-4051-94cc-1d71f298ca23","block_type":"box","text":"The Managed Volatility Subsidiary is not registered under the Investment Company Act, and, unless otherwise","page_number":20,"box":{"x":116,"y":816,"width":748,"height":12}},{"id":"e798a580-1b1c-4da2-abec-b4134ff2e7ff","block_type":"box","text":"noted in BlackRock Managed Volatility V.I Fund’s prospectus or this SAI, is not subject to all the investor","page_number":20,"box":{"x":116,"y":832,"width":725,"height":11}},{"id":"30a3602e-9699-4125-a523-24f55a0d7e5c","block_type":"box","text":"protections of the Investment Company Act. However, BlackRock Managed Volatility V.I Fund wholly owns","page_number":20,"box":{"x":116,"y":847,"width":744,"height":12}},{"id":"25e8dfc6-967a-4c40-b4bd-ada5d8c52600","block_type":"box","text":"and controls the Managed Volatility Subsidiary, and BlackRock Managed Volatility V.I Fund and the Managed","page_number":20,"box":{"x":116,"y":863,"width":757,"height":11}},{"id":"19115c4b-97c1-4385-9d06-4265b5c5ff97","block_type":"box","text":"Volatility Subsidiary are both managed by BlackRock, making it unlikely that the Managed Volatility Subsidiary","page_number":20,"box":{"x":116,"y":878,"width":768,"height":12}},{"id":"4e7c3ec5-5119-4dcd-a804-a98d3f022b63","block_type":"box","text":"will take action contrary to the interests of BlackRock Managed Volatility V.I Fund and its shareholders.","page_number":20,"box":{"x":116,"y":894,"width":711,"height":11}},{"id":"54c0cff0-a6cb-46a4-954e-b95acc743e25","block_type":"box","text":"BlackRock Managed Volatility V.I Fund’s Board of Trustees has oversight responsibility for the investment","page_number":20,"box":{"x":116,"y":909,"width":729,"height":12}},{"id":"666d5f78-0352-4830-b0a1-09275fce19d3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":20,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"da7c6711-3694-4223-b42c-0a2126893e23","block_type":"box","text":"activities of BlackRock Managed Volatility V.I Fund, including BlackRock Managed Volatility V.I Fund’s","page_number":21,"box":{"x":116,"y":88,"width":727,"height":11}},{"id":"3369cb0b-c534-4e83-8206-44daa2e7a294","block_type":"box","text":"investment in the Managed Volatility Subsidiary, and BlackRock Managed Volatility V.I Fund’s role as sole","page_number":21,"box":{"x":116,"y":103,"width":737,"height":12}},{"id":"3fdb3e32-b370-4f43-91b4-16db176b7337","block_type":"box","text":"shareholder of the Managed Volatility Subsidiary. As noted above, the Managed Volatility Subsidiary will be","page_number":21,"box":{"x":117,"y":119,"width":742,"height":11}},{"id":"3d73a6ae-38af-42e1-bbde-82c2333ccdf1","block_type":"box","text":"subject to the same investment restrictions and limitations as the BlackRock Managed Volatility V.I. Fund.","page_number":21,"box":{"x":117,"y":134,"width":726,"height":12}},{"id":"a42ea8bf-14b8-4085-91b1-c5507289cb96","block_type":"box","text":"The Managed Volatility Subsidiary is managed pursuant to compliance policies and procedures that are the same,","page_number":21,"box":{"x":116,"y":165,"width":770,"height":12}},{"id":"a467d59d-7f25-4f69-9008-ca79c75840cc","block_type":"box","text":"in all material respects, as the policies and procedures adopted by the BlackRock Managed Volatility V.I. Fund.","page_number":21,"box":{"x":116,"y":181,"width":759,"height":11}},{"id":"7abc1527-3908-4c27-aefa-065c2e047af3","block_type":"box","text":"In addition, changes in the laws of the United States and/or the Cayman Islands could result in the inability of the","page_number":21,"box":{"x":116,"y":196,"width":769,"height":12}},{"id":"81a9fa34-857d-463e-9569-887463212ef5","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund and/or the Managed Volatility Subsidiary to operate as described in the","page_number":21,"box":{"x":116,"y":212,"width":769,"height":11}},{"id":"734ced7d-d90c-4f41-89c4-5778a362b311","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund’s prospectus and this SAI and could adversely affect BlackRock","page_number":21,"box":{"x":116,"y":227,"width":722,"height":12}},{"id":"9e77519f-3b88-4cd3-b779-4bc5d97c6cfb","block_type":"box","text":"Managed Volatility V.I Fund. For example, the Cayman Islands does not currently impose any income, corporate","page_number":21,"box":{"x":116,"y":243,"width":768,"height":11}},{"id":"25d995d8-e414-4282-926c-65e8b83abca8","block_type":"box","text":"or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on the Managed Volatility Subsidiary.","page_number":21,"box":{"x":116,"y":258,"width":769,"height":12}},{"id":"197fe57c-c5bb-4a52-b74b-173e510ac767","block_type":"box","text":"If Cayman Islands law changes such that the Managed Volatility Subsidiary must pay Cayman Islands taxes,","page_number":21,"box":{"x":116,"y":274,"width":737,"height":11}},{"id":"799c0e3c-d445-44b0-9806-579dd6b101f1","block_type":"box","text":"shareholders of BlackRock Managed Volatility V.I. Fund would likely suffer decreased investment returns.","page_number":21,"box":{"x":117,"y":289,"width":727,"height":12}},{"id":"747857ae-c82b-4fa0-890b-5745dc4c8d1f","block_type":"box","text":"The Managed Volatility Subsidiary itself is not expected to be subject to U.S. federal income tax. The Managed","page_number":21,"box":{"x":116,"y":320,"width":758,"height":12}},{"id":"d1eed3d5-cc66-4534-bb4c-26c8e627a8bd","block_type":"box","text":"Volatility Subsidiary will, however, be considered a controlled foreign corporation, and BlackRock Managed","page_number":21,"box":{"x":116,"y":336,"width":741,"height":11}},{"id":"a1ccf491-58ee-4a5f-a555-acaf762faa81","block_type":"box","text":"Volatility V.I. Fund will be required to include as income annually amounts earned by the Managed Volatility","page_number":21,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"5a44ae27-9caf-4803-969d-0a105f57f3cd","block_type":"box","text":"Subsidiary during that year, whether or not the Managed Volatility Subsidiary distributes such amounts to the","page_number":21,"box":{"x":116,"y":367,"width":744,"height":11}},{"id":"bc1e0e3c-fe65-4f59-8205-a6f0b3bf2e75","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund. Gains from the sales of investments by the Managed Volatility","page_number":21,"box":{"x":116,"y":382,"width":715,"height":12}},{"id":"02a2ec21-da07-498c-822a-8a6b5999fdd3","block_type":"box","text":"Subsidiary will not be eligible for capital gains treatment but instead will be treated as ordinary income when","page_number":21,"box":{"x":116,"y":398,"width":741,"height":11}},{"id":"ee4ac87e-a2fa-41b5-b771-bc08f1f2159f","block_type":"box","text":"included in income by the BlackRock Managed Volatility V.I. Fund. Furthermore, the requirement for the","page_number":21,"box":{"x":116,"y":413,"width":719,"height":12}},{"id":"7669cb0a-8421-4761-b92c-41f02ae3f723","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund to distribute net investment income, if any, and net realized capital","page_number":21,"box":{"x":116,"y":429,"width":738,"height":11}},{"id":"ff281d78-5311-4b47-9185-f93b8c017a65","block_type":"box","text":"gain, if any, at least annually will apply to such Managed Volatility Subsidiary income, whether or not the","page_number":21,"box":{"x":116,"y":444,"width":720,"height":12}},{"id":"b209aae2-2f53-44ef-892a-86f5134a1e58","block_type":"box","text":"Managed Volatility Subsidiary makes a distribution to the BlackRock Managed Volatility V.I. Fund during the","page_number":21,"box":{"x":116,"y":460,"width":752,"height":11}},{"id":"7bf6973d-987e-4833-8c96-0a571d6f3068","block_type":"box","text":"taxable year. If the Managed Volatility Subsidiary incurs net losses in any year, such losses will not offset the","page_number":21,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"9c4d0d74-fdb1-46d6-8a3c-97de50b4bac6","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund’s income or gains nor carryforward to future years.","page_number":21,"box":{"x":116,"y":491,"width":633,"height":11}},{"id":"d90409fd-4ebf-4956-b9fd-77c993cb329a","block_type":"box","text":"The section entitled “II. Investment Restrictions - Restrictions Applicable to each of the Funds (Except","page_number":21,"box":{"x":116,"y":522,"width":740,"height":11}},{"id":"7eba3087-6d3b-46da-8bef-3688dfa896cf","block_type":"box","text":"BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock Government Money Market V.I. Fund,","page_number":21,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"fe0e7942-3dd2-4903-b001-ab8ac3c8fd84","block_type":"box","text":"BlackRock International Index V.I. Fund and BlackRock Small Cap Index V.I. Fund)” is amended to add","page_number":21,"box":{"x":116,"y":553,"width":763,"height":11}},{"id":"23117337-bcca-43d0-ac92-dbb5efa5a873","block_type":"box","text":"the following:","page_number":21,"box":{"x":116,"y":568,"width":103,"height":12}},{"id":"c40f9b6a-11d9-454f-9a13-1d8bc6b8bb0b","block_type":"box","text":"The Managed Volatility Subsidiary will follow BlackRock Managed Volatility V.I. Fund’s fundamental and","page_number":21,"box":{"x":116,"y":599,"width":734,"height":12}},{"id":"f926995a-b77c-4eff-9c07-fe8357a2cd0a","block_type":"box","text":"non-fundamental investment restrictions, described above, with respect to its investments.","page_number":21,"box":{"x":116,"y":615,"width":611,"height":11}},{"id":"b0916009-9b56-4822-9d55-884021714e5f","block_type":"box","text":"The title of the subsection entitled “IV. Management, Advisory and Other Service Arrangements —","page_number":21,"box":{"x":116,"y":646,"width":720,"height":11}},{"id":"18104893-b6d3-4eb4-9527-48c7f5c6eaef","block_type":"box","text":"Organization and Management of Wholly-Owned Subsidiary” is deleted in its entirety and replaced with","page_number":21,"box":{"x":116,"y":661,"width":752,"height":12}},{"id":"9403b589-fd41-4029-8602-4eeeed80a65a","block_type":"box","text":"the following: “IV. Management, Advisory and Other Service Arrangements — Organization and","page_number":21,"box":{"x":116,"y":677,"width":702,"height":11}},{"id":"549e38c9-ec38-40b6-9c72-51acbe66222c","block_type":"box","text":"Management of Wholly-Owned Subsidiary — BlackRock Global Allocation V.I. Fund”","page_number":21,"box":{"x":116,"y":692,"width":625,"height":12}},{"id":"eeed8eb7-f124-45e6-a53b-eb02d2f86783","block_type":"box","text":"The section entitled “IV. Management, Advisory and Other Service Arrangements” is amended to add the","page_number":21,"box":{"x":116,"y":723,"width":761,"height":12}},{"id":"8a49b93b-52c5-426e-93d9-1f69e1ce0bd4","block_type":"box","text":"following:","page_number":21,"box":{"x":116,"y":739,"width":70,"height":11}},{"id":"b5fb5f01-b95b-470b-b944-fd17b2e07976","block_type":"box","text":"Organization and Management of Wholly-Owned Subsidiary — BlackRock Managed Volatility V.I. Fund","page_number":21,"box":{"x":116,"y":770,"width":760,"height":11}},{"id":"3729000f-d11f-42e6-90c2-4f3bf9bc6f36","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund intends to gain exposure to commodity markets by investing up to 25%","page_number":21,"box":{"x":116,"y":801,"width":764,"height":11}},{"id":"e2212ffc-d329-43c0-b778-e8f609aada3c","block_type":"box","text":"of its total assets in the Managed Volatility Subsidiary. The Managed Volatility Subsidiary invests primarily in","page_number":21,"box":{"x":116,"y":816,"width":748,"height":12}},{"id":"37cfd6b6-3bc9-492d-a948-56a35473c46b","block_type":"box","text":"commodity-related instruments.","page_number":21,"box":{"x":116,"y":832,"width":219,"height":11}},{"id":"9c9aae8d-06c2-4acc-8138-bf99daf5ec64","block_type":"box","text":"The Managed Volatility Subsidiary is a company organized under the laws of the Cayman Islands, whose","page_number":21,"box":{"x":116,"y":863,"width":716,"height":11}},{"id":"78843556-dc55-4efc-99ed-c0269b0c3273","block_type":"box","text":"registered office is located at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House,","page_number":21,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"d3568f30-0632-4b9a-9e5d-686976619b52","block_type":"box","text":"Grand Cayman KYI-1104, Cayman Islands. The Subsidiary’s affairs are overseen by a board of directors, which","page_number":21,"box":{"x":116,"y":894,"width":762,"height":11}},{"id":"52383662-cd87-4dd0-8db7-71b1ba0c225e","block_type":"box","text":"is comprised of John M. Perlowski and Trent Walker.","page_number":21,"box":{"x":116,"y":909,"width":361,"height":12}},{"id":"3a68717e-e0bf-4dd2-8377-aaf3a6c97e0b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":21,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1248b613-0d0b-493a-bbc0-61660b17c434","block_type":"box","text":"The Manager provides investment management and administrative services to the Managed Volatility","page_number":22,"box":{"x":116,"y":88,"width":691,"height":11}},{"id":"c46f8bda-9866-4d4f-a126-75eb502237cb","block_type":"box","text":"Subsidiary. The Manager does not receive separate compensation from the Managed Volatility Subsidiary for","page_number":22,"box":{"x":116,"y":103,"width":744,"height":12}},{"id":"656d4872-4f92-41a1-bffe-12554862ec4a","block_type":"box","text":"providing it with investment advisory or administrative services. However, BlackRock Managed Volatility V.I.","page_number":22,"box":{"x":116,"y":119,"width":755,"height":11}},{"id":"d1cc990f-4773-4683-b4c7-2cf2cb7ecffc","block_type":"box","text":"Fund pays the Manager based on BlackRock Managed Volatility V.I. Fund’s assets, including the assets invested","page_number":22,"box":{"x":116,"y":134,"width":767,"height":12}},{"id":"9fd14739-cd43-47e2-adcb-ddd5969fb1e5","block_type":"box","text":"in the Managed Volatility Subsidiary. BlackRock has entered into sub-advisory agreements with each of","page_number":22,"box":{"x":116,"y":150,"width":708,"height":11}},{"id":"d2128522-28ca-48cb-9f39-62c4c267baff","block_type":"box","text":"BlackRock International Limited, BlackRock Asset Management North Asia Limited and BlackRock","page_number":22,"box":{"x":116,"y":165,"width":688,"height":12}},{"id":"435aa79e-d7d9-463a-b699-48bda23a3f6b","block_type":"box","text":"(Singapore) Limited with respect to the Managed Volatility Subsidiary. The Managed Volatility Subsidiary","page_number":22,"box":{"x":116,"y":181,"width":728,"height":11}},{"id":"8cbb080f-ddbb-4a31-bc6e-f55fd8caf405","block_type":"box","text":"entered into contracts for the provision of custody, accounting agent and audit services with the same service","page_number":22,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"dcc0115a-ddb5-4b24-9509-c8658651fba3","block_type":"box","text":"providers that provide those services to BlackRock Managed Volatility V.I. Fund.","page_number":22,"box":{"x":116,"y":212,"width":557,"height":11}},{"id":"525ed1ac-f9aa-4a53-b207-c6038aef9162","block_type":"box","text":"The Managed Volatility Subsidiary is managed pursuant to compliance policies and procedures that are the same,","page_number":22,"box":{"x":116,"y":243,"width":770,"height":11}},{"id":"06b77231-b4af-4b49-afa1-4930ea508f8c","block_type":"box","text":"in all material respects, as the policies and procedures adopted by BlackRock Managed Volatility V.I. Fund. As a","page_number":22,"box":{"x":116,"y":258,"width":769,"height":12}},{"id":"4643f3f7-6cc7-4bfb-bf25-bb08c4b94250","block_type":"box","text":"result, the Manager, in managing the Managed Volatility Subsidiary’s portfolio, is subject to the same investment","page_number":22,"box":{"x":116,"y":274,"width":770,"height":11}},{"id":"aa58ea25-41ab-4926-aa3f-1d8cfaf2e8c3","block_type":"box","text":"policies and restrictions that apply to the management of BlackRock Managed Volatility V.I. Fund, and, in","page_number":22,"box":{"x":116,"y":289,"width":725,"height":12}},{"id":"2767ca71-52de-4c4f-b6f0-979259e299c6","block_type":"box","text":"particular, to the requirements relating to portfolio leverage, liquidity, brokerage, and the timing and method of","page_number":22,"box":{"x":116,"y":305,"width":754,"height":11}},{"id":"ad772136-edec-4058-b139-cf97f9ed33be","block_type":"box","text":"the valuation of the Managed Volatility Subsidiary’s portfolio investments and shares of the Managed Volatility","page_number":22,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"414441d9-79e5-40fc-8e96-9ec1564e93a5","block_type":"box","text":"Subsidiary. These policies and restrictions are described elsewhere in detail in this SAI. BlackRock Managed","page_number":22,"box":{"x":116,"y":336,"width":741,"height":11}},{"id":"4caa1cea-763e-44ac-b044-77489198583e","block_type":"box","text":"Volatility V.I Fund and the Managed Volatility Subsidiary test for compliance with certain investment","page_number":22,"box":{"x":116,"y":351,"width":695,"height":12}},{"id":"841a6a75-1547-4e9e-afef-e04356305c8d","block_type":"box","text":"restrictions on a consolidated basis.","page_number":22,"box":{"x":116,"y":367,"width":243,"height":9}},{"id":"2059dc95-6bef-4a03-a2ff-bbe2a051e7d1","block_type":"box","text":"The section entitled “VI. Computation of Offering Price Per Share” is deleted in its entirety and replaced","page_number":22,"box":{"x":116,"y":398,"width":758,"height":11}},{"id":"475c87a6-aa58-4494-bfae-d3cece33499d","block_type":"box","text":"with the following:","page_number":22,"box":{"x":116,"y":413,"width":139,"height":12}},{"id":"090e671f-a471-4f1d-ba8a-fed5dbf4fe86","block_type":"box","text":"The offering price for each Fund’s shares is equal to the net asset value computed by dividing the value of the","page_number":22,"box":{"x":116,"y":444,"width":745,"height":12}},{"id":"9b46dd6e-4c57-48ce-a11f-3abd6088658b","block_type":"box","text":"Fund’s net assets by the number of shares outstanding. For more information on the purchasing and valuation of","page_number":22,"box":{"x":116,"y":460,"width":761,"height":11}},{"id":"988b329c-a893-4902-bfb7-7cad28b8283a","block_type":"box","text":"shares, please see “Purchase of Shares” and “Pricing of Shares” in Part II of this SAI. Each of the Global","page_number":22,"box":{"x":117,"y":475,"width":710,"height":12}},{"id":"4eeb3fed-ddb4-4508-9922-b8a3fa5dfecf","block_type":"box","text":"Allocation Subsidiary and the Managed Volatility Subsidiary is subject to the same valuation policies as","page_number":22,"box":{"x":116,"y":491,"width":708,"height":11}},{"id":"eec2b58e-479c-4361-a1e2-bd19666b5ba9","block_type":"box","text":"BlackRock Global Allocation V.I. Fund and BlackRock Managed Volatility V.I. Fund, as applicable, as","page_number":22,"box":{"x":116,"y":506,"width":705,"height":12}},{"id":"8024ad1d-3f37-471a-9dbd-fd6f6d5829ba","block_type":"box","text":"described in “Pricing of Shares” in Part II of this SAI. BlackRock Global Allocation V.I. Fund’s investment in","page_number":22,"box":{"x":116,"y":522,"width":749,"height":11}},{"id":"8853319c-1d5e-471b-8c1b-10949e86a5dd","block_type":"box","text":"the Global Allocation Subsidiary and BlackRock Managed Volatility V.I. Fund’s investments in the Managed","page_number":22,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"2566459f-b12f-495f-a582-468a8ae7f5d6","block_type":"box","text":"Volatility Subsidiary are valued based on the value of the applicable subsidiary’s portfolio investments. Each of","page_number":22,"box":{"x":116,"y":553,"width":759,"height":11}},{"id":"82154230-cf45-4cea-8dbd-9b5433368fb9","block_type":"box","text":"the Global Allocation Subsidiary and the Managed Volatility Subsidiary prices its portfolio investments pursuant","page_number":22,"box":{"x":116,"y":568,"width":767,"height":12}},{"id":"d8ba2be9-2382-4055-a8e4-3a8d092b2b57","block_type":"box","text":"to the same pricing and valuation methodologies and procedures used by BlackRock Global Allocation V.I. Fund","page_number":22,"box":{"x":116,"y":584,"width":768,"height":11}},{"id":"d8e65d85-c945-4b0d-a23a-353bc5b96a6a","block_type":"box","text":"and BlackRock Managed Volatility V.I. Fund, as applicable, which require, among other things, that the","page_number":22,"box":{"x":116,"y":599,"width":707,"height":12}},{"id":"aee04718-b7c5-4b9b-a3f5-224587b32ccd","block_type":"box","text":"subsidiary’s portfolio investments be marked-to-market (that is, the value on the subsidiary’s books changes)","page_number":22,"box":{"x":117,"y":615,"width":739,"height":11}},{"id":"fad4ee5e-b921-4915-b0dd-15298cb14d00","block_type":"box","text":"each business day to reflect changes in the market value of the investment.","page_number":22,"box":{"x":116,"y":630,"width":507,"height":12}},{"id":"73cef187-9a48-45b3-9d1f-1dd0ee520ad8","block_type":"box","text":"Shareholders should retain this Supplement for future reference.","page_number":22,"box":{"x":267,"y":661,"width":465,"height":12}},{"id":"5f1fbafc-ecd1-411e-a41b-60a0028d1f7a","block_type":"box","text":"SAI-MVVI-0526SUP","page_number":22,"box":{"x":116,"y":692,"width":147,"height":9}},{"id":"3a0f3c45-0122-4151-aa70-53896883a484","block_type":"box","text":"4","page_number":22,"box":{"x":495,"y":909,"width":8,"height":9}},{"id":"d5e55707-ea74-4418-bb18-6348995fe1bd","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":22,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6875e724-994b-4ed5-8ecc-b6ddd74d41b9","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":23,"box":{"x":273,"y":145,"width":452,"height":11}},{"id":"da8ee690-53af-41d4-a876-0126cde99fe2","block_type":"box","text":"BlackRock Variable Series Funds, Inc.","page_number":23,"box":{"x":225,"y":170,"width":550,"height":20}},{"id":"cf4d6899-c5de-4b4c-9b64-1465b63e3df5","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 537-4942","page_number":23,"box":{"x":123,"y":200,"width":754,"height":15}},{"id":"189de268-8d9b-445e-9204-f947af1a0fd8","block_type":"box","text":"BlackRock Variable Series Funds, Inc. 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This Statement","page_number":23,"box":{"x":117,"y":392,"width":754,"height":12}},{"id":"574eb88b-aad7-49f2-873d-abb222a72170","block_type":"box","text":"of Additional Information of the Company is not a prospectus and should be read in conjunction","page_number":23,"box":{"x":117,"y":406,"width":755,"height":12}},{"id":"d4d12748-8b32-418e-aedc-d6c114fa5987","block_type":"box","text":"with the Prospectuses of the Funds, each dated May 1, 2026 as they may be amended or","page_number":23,"box":{"x":116,"y":420,"width":697,"height":13}},{"id":"c10d7018-ab7f-4387-817c-ecd6dff7a9ba","block_type":"box","text":"supplemented from time to time (each, a “Prospectus”), which have been filed with the Securities","page_number":23,"box":{"x":116,"y":434,"width":761,"height":12}},{"id":"ce26bf97-b0ba-4490-b825-168118c65e17","block_type":"box","text":"and Exchange Commission (the “Commission” or the “SEC”) and can be obtained, without","page_number":23,"box":{"x":117,"y":449,"width":708,"height":12}},{"id":"c579cda6-3e9b-4675-abd1-19fac8f9eee2","block_type":"box","text":"charge, by calling (800) 537-4942 or by writing to the Company at the above address. Part I of","page_number":23,"box":{"x":117,"y":463,"width":739,"height":12}},{"id":"fa579be0-0acb-43a7-91e9-b5ecfc644186","block_type":"box","text":"this Statement of Additional Information and the portions of Part II of this Statement of","page_number":23,"box":{"x":116,"y":477,"width":686,"height":12}},{"id":"b3a8b056-b2af-472c-a328-6da38ab0a797","block_type":"box","text":"Additional Information that relate to each Fund have been incorporated by reference into each","page_number":23,"box":{"x":116,"y":492,"width":741,"height":12}},{"id":"92ddc13a-a4c6-4c63-b52a-3bdada6e61d9","block_type":"box","text":"Fund’s Prospectus. The portions of Part II of this Statement of Additional Information that do not","page_number":23,"box":{"x":118,"y":506,"width":759,"height":11}},{"id":"91f17924-2c09-440c-b3fb-5f5e2936d792","block_type":"box","text":"relate to the Funds do not form a part of the Funds’ Statement of Additional Information, have","page_number":23,"box":{"x":117,"y":520,"width":737,"height":12}},{"id":"3b1f2ad9-65c2-4cb3-baf5-faa699ed991a","block_type":"box","text":"not been incorporated by reference into each Fund’s Prospectus and should not be relied upon","page_number":23,"box":{"x":117,"y":534,"width":745,"height":12}},{"id":"920d0af4-04fb-40e3-83e2-706fbb42b211","block_type":"box","text":"by investors in the Funds. The audited financial statements of the Funds are incorporated into","page_number":23,"box":{"x":117,"y":548,"width":739,"height":12}},{"id":"354bb8ff-de9a-4e8f-a349-d4b590431dde","block_type":"box","text":"this Statement of Additional Information by reference to the Funds’ Annual Financial Statements","page_number":23,"box":{"x":116,"y":563,"width":762,"height":12}},{"id":"2e8a69b3-c465-4278-8aee-deab4e7d2a46","block_type":"box","text":"and Additional Information for the fiscal year ended December 31, 2025, as filed with the SEC on","page_number":23,"box":{"x":117,"y":577,"width":759,"height":12}},{"id":"51c5300f-d317-4b54-880c-6faab434d4de","block_type":"box","text":"Form N-CSR (the “2025 Annual Financial Statements”). You may request a copy of the 2025","page_number":23,"box":{"x":118,"y":591,"width":722,"height":12}},{"id":"b099e1a5-5b34-4a7d-a98d-aedae783da96","block_type":"box","text":"Annual Financial Statements at no charge by calling (800) 537-4942 between 8:00 a.m. and","page_number":23,"box":{"x":116,"y":605,"width":724,"height":12}},{"id":"59c2ef56-0829-4d46-8c63-10e1718a50ff","block_type":"box","text":"6:00 p.m. Eastern time on any business day.","page_number":23,"box":{"x":117,"y":620,"width":344,"height":11}},{"id":"111f8826-ae3e-46b0-b635-498f09836612","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company","page_number":23,"box":{"x":151,"y":641,"width":726,"height":12}},{"id":"70aae864-4032-44e1-a16c-b7b29529def2","block_type":"box","text":"Act” or the “1940 Act”), or other applicable law, will include any rules promulgated thereunder","page_number":23,"box":{"x":116,"y":655,"width":734,"height":13}},{"id":"3816f7d5-b3fa-4beb-b0d2-1e553071867d","block_type":"box","text":"and any guidance, interpretations or modifications by the Commission, Commission staff or","page_number":23,"box":{"x":117,"y":670,"width":723,"height":12}},{"id":"5b150ee5-393a-4b04-86a7-3a918b13ab93","block_type":"box","text":"other authority with appropriate jurisdiction, including court interpretations, and exemptive,","page_number":23,"box":{"x":117,"y":684,"width":722,"height":12}},{"id":"3417bf8a-f6bb-4272-9384-5d94a09adf9a","block_type":"box","text":"no-action or other relief or permission from the Commission, Commission staff or other","page_number":23,"box":{"x":117,"y":698,"width":688,"height":12}},{"id":"ac2d2f4d-5a20-4851-b98c-5425762864ac","block_type":"box","text":"authority.","page_number":23,"box":{"x":117,"y":713,"width":74,"height":12}},{"id":"a9e172bc-9bf9-47a4-8069-2d046ac0b092","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":23,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"910a99e8-7420-4b15-9a48-c24e46a0fc89","block_type":"box","text":"The date of this Statement of Additional Information is May 1, 2026.","page_number":24,"box":{"x":237,"y":145,"width":524,"height":12}},{"id":"b4a66da3-e87f-4144-9802-dc5836e3d0a5","block_type":"box","text":"BlackRock 60/40 Target Allocation ETF V.I. 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I-2","page_number":25,"box":{"x":381,"y":158,"width":502,"height":9}},{"id":"e66b843a-8943-48c7-bec1-40b381b9a17f","block_type":"box","text":"Investment Restrictions","page_number":25,"box":{"x":125,"y":174,"width":169,"height":10}},{"id":"f0e7a4b4-0ba5-43a2-9658-28ffee4f54f9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19","page_number":25,"box":{"x":300,"y":174,"width":582,"height":10}},{"id":"20473c1c-0937-470a-bdc9-ff8043f7704a","block_type":"box","text":"Information on Directors and Officers","page_number":25,"box":{"x":125,"y":190,"width":276,"height":10}},{"id":"b1522424-8407-4c38-a09a-238829473c25","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":25,"box":{"x":416,"y":191,"width":467,"height":9}},{"id":"5ed20fc6-eac5-449b-9433-6e1ece8e8bda","block_type":"box","text":"Management, Advisory and Other Service Arrangements","page_number":25,"box":{"x":124,"y":207,"width":411,"height":13}},{"id":"0ecf9ef4-3e5a-48cd-9403-557e8bd8d66d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-35","page_number":25,"box":{"x":550,"y":208,"width":332,"height":9}},{"id":"84f46e0c-7e05-49cb-940d-f6d336c0d4e5","block_type":"box","text":"Information on Distribution Related Expenses","page_number":25,"box":{"x":125,"y":224,"width":334,"height":13}},{"id":"55cf5afe-4f40-48e7-ae58-21a4b3b08b2b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-50","page_number":25,"box":{"x":470,"y":225,"width":412,"height":9}},{"id":"928eece6-0719-48cc-b1cf-74f03e1ee573","block_type":"box","text":"Computation of Offering Price Per Share","page_number":25,"box":{"x":125,"y":240,"width":295,"height":13}},{"id":"d1dc97bd-517b-4a68-9367-44364eba3041","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-52","page_number":25,"box":{"x":434,"y":241,"width":449,"height":10}},{"id":"c392df30-026f-4f5e-9f85-f808fc8334bc","block_type":"box","text":"Portfolio Transactions and Brokerage","page_number":25,"box":{"x":125,"y":257,"width":272,"height":13}},{"id":"be234e35-0528-4cb0-9514-37388aa19bc6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-52","page_number":25,"box":{"x":407,"y":258,"width":476,"height":9}},{"id":"68eed2e9-ad28-42cb-979b-d00532d13f30","block_type":"box","text":"Purchase of Shares","page_number":25,"box":{"x":125,"y":274,"width":134,"height":10}},{"id":"525501a8-d45d-4e16-9d21-61de225347e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-60","page_number":25,"box":{"x":273,"y":275,"width":609,"height":9}},{"id":"f98eb5ec-58db-4630-9ebf-64610a6af182","block_type":"box","text":"Special Tax Rules Applicable to Variable Contracts","page_number":25,"box":{"x":125,"y":291,"width":372,"height":12}},{"id":"a2d44e6e-4b9f-4f99-aadb-326fbc4b00ff","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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To","page_number":42,"box":{"x":116,"y":471,"width":722,"height":12}},{"id":"5ea6e775-9557-4f6c-b598-6df5d5547fdf","block_type":"box","text":"address this issue of lack of transparency, the CFTC staff issued a no-action letter on November 29, 2012","page_number":42,"box":{"x":116,"y":486,"width":732,"height":13}},{"id":"a7f47641-b552-4387-aee3-5bad040f0953","block_type":"box","text":"permitting the adviser of a fund that invests in such underlying funds and that would otherwise have filed a","page_number":42,"box":{"x":116,"y":502,"width":743,"height":12}},{"id":"3f86cb56-fa7c-4b0f-98d7-0e042e0babd6","block_type":"box","text":"claim of exclusion pursuant to Rule 4.5 to delay registration as a “commodity pool operator” until six","page_number":42,"box":{"x":116,"y":517,"width":711,"height":13}},{"id":"3d791d27-b4e6-470b-aae1-41af8bc0167b","block_type":"box","text":"months from the date on which the CFTC issues additional guidance on the treatment of CFTC Derivatives","page_number":42,"box":{"x":116,"y":533,"width":746,"height":12}},{"id":"cbca4b19-6235-4587-8f8f-86e305f75fe3","block_type":"box","text":"held by underlying funds. BlackRock, the adviser of BlackRock Global Allocation V.I. Fund and BlackRock","page_number":42,"box":{"x":116,"y":548,"width":749,"height":13}},{"id":"932748c3-e460-4a5a-a30c-a357b142d8c9","block_type":"box","text":"60/40 Target Allocation ETF V.I. Fund, has filed a claim with the CFTC for the Funds to rely on this","page_number":42,"box":{"x":117,"y":564,"width":699,"height":12}},{"id":"39afedf6-0ad0-4056-86a5-08b0a11b5dd0","block_type":"box","text":"no-action relief. Accordingly, BlackRock is not subject to registration or regulation as a “commodity pool","page_number":42,"box":{"x":116,"y":579,"width":734,"height":13}},{"id":"75ec134b-c7ee-44f9-b98e-131598ebdcb9","block_type":"box","text":"operator” under the CEA in respect of BlackRock Global Allocation V.I. Fund and BlackRock 60/40 Target","page_number":42,"box":{"x":116,"y":595,"width":751,"height":12}},{"id":"ef7a839f-99e3-42a3-a0b8-84ee2e585be3","block_type":"box","text":"Allocation ETF V.I. Fund.","page_number":42,"box":{"x":116,"y":610,"width":180,"height":10}},{"id":"a6aa124a-fa45-442d-a24f-29249495ece5","block_type":"box","text":"BlackRock Global Allocation V.I. Fund’s primary vehicle for gaining exposure to the commodities markets is","page_number":42,"box":{"x":116,"y":632,"width":757,"height":13}},{"id":"8d06a5d9-6fbb-433e-acd4-a90f6aba68c0","block_type":"box","text":"expected to be through investments in BlackRock Cayman Global Allocation V.I. Fund I, Ltd., a wholly","page_number":42,"box":{"x":116,"y":648,"width":722,"height":13}},{"id":"479fa29c-e022-485f-b63f-9974b1c594db","block_type":"box","text":"owned subsidiary of BlackRock Global Allocation V.I. Fund formed in the Cayman Islands (the “Global","page_number":42,"box":{"x":116,"y":663,"width":726,"height":13}},{"id":"82482f55-94ca-4ae6-8c9f-2a49e2e99262","block_type":"box","text":"Allocation Subsidiary” or the “Subsidiary”), which inv","page_number":42,"box":{"x":116,"y":679,"width":381,"height":13}},{"id":"5fc2f3f6-b84e-49ac-86df-13a3749574fe","block_type":"box","text":"ests primarily in commodity-related instruments. The","page_number":42,"box":{"x":497,"y":679,"width":369,"height":13}},{"id":"7f1e4d09-3501-4070-adc2-ee02f56882ec","block_type":"box","text":"Subsidiary may also hold cash and invest in other instruments, including fixed-income securities, either as","page_number":42,"box":{"x":116,"y":694,"width":731,"height":13}},{"id":"6ca57c81-099c-4495-9f64-5386fdd32370","block_type":"box","text":"investments or to serve as margin or collateral for the Subsidiary’s derivative positions.","page_number":42,"box":{"x":116,"y":710,"width":600,"height":13}},{"id":"db575a58-238a-4fd0-a660-6af514bddf33","block_type":"box","text":"Investments in the Subsidiary","page_number":42,"box":{"x":116,"y":736,"width":212,"height":13}},{"id":"d7b4d2dc-6543-4dbc-8282-8c404ab3c8d6","block_type":"box","text":"BlackRock Global Allocation V.I. Fund may invest up to 25% of its total assets in the shares of its wholly","page_number":42,"box":{"x":116,"y":761,"width":739,"height":12}},{"id":"fe9d631f-4135-48c5-a306-d46bd76cde05","block_type":"box","text":"owned and controlled Global Allocation Subsidiary. Investments in the Subsidiary are expected to provide","page_number":42,"box":{"x":116,"y":776,"width":736,"height":13}},{"id":"7ee27a17-ef5b-4c39-85d0-4066482b49db","block_type":"box","text":"BlackRock Global Allocation V.I. Fund with exposure t","page_number":42,"box":{"x":116,"y":792,"width":387,"height":13}},{"id":"657fb893-5fa4-40d9-94fc-fadea0f80178","block_type":"box","text":"o the commodity markets within the limitations of","page_number":42,"box":{"x":504,"y":792,"width":351,"height":13}},{"id":"e7c4bcb6-38bf-4d60-aa90-bab7ce233e48","block_type":"box","text":"Subchapter M of the Internal Revenue Code of 1986, as","page_number":42,"box":{"x":116,"y":807,"width":389,"height":13}},{"id":"0f82e427-795b-4481-bf7b-35ca649389b6","block_type":"box","text":"amended (the “Internal Revenue Code”), and IRS","page_number":42,"box":{"x":510,"y":807,"width":345,"height":13}},{"id":"d5ba23de-5f15-48c7-8101-6db894fda343","block_type":"box","text":"revenue rulings, as discussed below. The Subsidiary is advised by the Manager. The Subsidiary (unlike","page_number":42,"box":{"x":116,"y":823,"width":707,"height":13}},{"id":"69effb9b-7855-47ab-91ae-f77c32dc23bd","block_type":"box","text":"BlackRock Global Allocation V.I. Fund) may invest wit","page_number":42,"box":{"x":116,"y":838,"width":386,"height":13}},{"id":"96302c98-05f9-4896-bdfd-1ea4b0b8e90b","block_type":"box","text":"hout limitation in commodity-related instruments.","page_number":42,"box":{"x":502,"y":838,"width":348,"height":13}},{"id":"f27396ed-3ba2-46e6-a7f8-ff3fbaeac2dc","block_type":"box","text":"However, the Global Allocation Subsidiary is otherwise subject to the same fundamental, non-fundamental","page_number":42,"box":{"x":116,"y":854,"width":745,"height":13}},{"id":"57bbd32f-a9b3-4b72-9572-68747108b44b","block_type":"box","text":"and certain other investment restrictions as BlackRock Global Allocation V.I. Fund, including the timing and","page_number":42,"box":{"x":116,"y":869,"width":756,"height":13}},{"id":"b91b44c8-3efc-4904-afb8-565df5abc693","block_type":"box","text":"I-17","page_number":42,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"2fcd0200-88b8-4eb0-8577-82aeda987ad2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":42,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"45e56896-29d9-47b0-a699-4f86995c499c","block_type":"box","text":"method of the valuation of the Subsidiary’s portfolio investments and shares of the Subsidiary. The Subsidiary","page_number":43,"box":{"x":116,"y":79,"width":763,"height":13}},{"id":"baffa2fe-701c-4d33-9aee-9a9d72785e93","block_type":"box","text":"is managed pursuant to compliance policies and procedures that are the same, in all material respects, as the","page_number":43,"box":{"x":116,"y":94,"width":749,"height":13}},{"id":"d634fc57-939a-43be-b945-db79efaf93dd","block_type":"box","text":"policies and procedures adopted by the Company. The Subsidiary is a company organized under the laws of","page_number":43,"box":{"x":116,"y":110,"width":750,"height":13}},{"id":"99aa1f6a-a3f4-4d8a-8629-a1dc333af44a","block_type":"box","text":"the Cayman Islands, and is overseen by its own board of directors, which is comprised of Trent Walker, Chief","page_number":43,"box":{"x":116,"y":125,"width":764,"height":13}},{"id":"8ea191e6-7768-4ba7-acaf-cd1e5e9286f7","block_type":"box","text":"Financial Officer of the Company, and John M. Perlowski, a Director, President and Chief Executive Officer","page_number":43,"box":{"x":116,"y":141,"width":754,"height":13}},{"id":"397a21e9-1ba2-4e71-b15d-2ead6704787c","block_type":"box","text":"of the Company. BlackRock Global Allocation V.I. Fund is the sole shareholder of the Global Allocation","page_number":43,"box":{"x":116,"y":156,"width":728,"height":13}},{"id":"9c9ed249-3a64-4117-929f-2061fa994a23","block_type":"box","text":"Subsidiary, and shares of the Subsidiary will not be sold or offered to other investors.","page_number":43,"box":{"x":116,"y":172,"width":589,"height":13}},{"id":"21119725-d5b5-4242-9331-526a9b11e644","block_type":"box","text":"The Global Allocation Subsidiary invests primarily in co","page_number":43,"box":{"x":116,"y":197,"width":390,"height":12}},{"id":"d366ff32-c794-4f67-8963-10f307e7c710","block_type":"box","text":"mmodity-related instruments. Although BlackRock","page_number":43,"box":{"x":507,"y":197,"width":355,"height":12}},{"id":"53719230-0984-4272-80bf-0c0f0f56a642","block_type":"box","text":"Global Allocation V.I. Fund may enter into these commodity","page_number":43,"box":{"x":117,"y":212,"width":422,"height":13}},{"id":"a19b37f6-c8dd-4de3-b9cb-03603ae7d94c","block_type":"box","text":"-related instruments directly, BlackRock Global","page_number":43,"box":{"x":540,"y":212,"width":330,"height":13}},{"id":"f7fb707e-a2b6-4839-ba2c-5c789c00d5ad","block_type":"box","text":"Allocation V.I. Fund will likely gain exposure to these comm","page_number":43,"box":{"x":116,"y":228,"width":422,"height":12}},{"id":"4af8bd9d-2b72-4691-a3de-0247d8dcd682","block_type":"box","text":"odity-related instruments indirectly by investing","page_number":43,"box":{"x":538,"y":228,"width":331,"height":12}},{"id":"6312e915-158e-4b7f-b96f-d2b7679730cf","block_type":"box","text":"in the Global Allocation Subsidiary. To the extent that BlackRock believes that these commodity-related","page_number":43,"box":{"x":116,"y":243,"width":724,"height":13}},{"id":"1b1bafb7-9e39-487f-9b20-2d6d00218431","block_type":"box","text":"instruments provide suitable exposure to the commodities market, BlackRock Global Allocation V.I. Fund’s","page_number":43,"box":{"x":116,"y":259,"width":749,"height":12}},{"id":"90d9fe25-b084-4408-873b-0678c07f59eb","block_type":"box","text":"investments in the Subsidiary will likely increase. The Subsidiary may also hold cash and invest in other","page_number":43,"box":{"x":116,"y":274,"width":717,"height":13}},{"id":"3dce0e4e-a93c-429e-a22b-55c371543d05","block_type":"box","text":"instruments, including fixed-income securities, either as investments or to serve as margin or collateral for the","page_number":43,"box":{"x":116,"y":290,"width":758,"height":12}},{"id":"a10296ea-40d6-4cce-882f-8b856d2943ac","block_type":"box","text":"Subsidiary’s derivative positions.","page_number":43,"box":{"x":116,"y":305,"width":225,"height":13}},{"id":"b0482587-659c-4875-af1a-28c61e17e001","block_type":"box","text":"The Manager manages the assets of the Subsidiary, but receives no additional compensation for doing so. The","page_number":43,"box":{"x":116,"y":330,"width":762,"height":13}},{"id":"24b0c5f8-c65f-4438-9750-fcd35a716ecc","block_type":"box","text":"Manager also provides certain administrative services for the Subsidiary, but receives no additional","page_number":43,"box":{"x":116,"y":345,"width":685,"height":13}},{"id":"e9529210-6d52-4297-87d0-7366e31776d7","block_type":"box","text":"compensation for doing so. The Subsidiary will also enter into separate contracts for the provision of","page_number":43,"box":{"x":116,"y":361,"width":701,"height":13}},{"id":"3183c2f8-2875-40a3-9f4d-557f82abd73b","block_type":"box","text":"advisory, sub-advisory, custody and accounting agent services with the same or with affiliates of the same","page_number":43,"box":{"x":116,"y":376,"width":732,"height":13}},{"id":"54a3e9c8-acf4-4ba2-a1ce-eafbc7828d94","block_type":"box","text":"service providers that provide those services to BlackRock Global Allocation V.I. Fund.","page_number":43,"box":{"x":116,"y":392,"width":605,"height":13}},{"id":"3b4f94a5-919f-4c7b-9703-c60d9a53e194","block_type":"box","text":"The financial statements of the Global Allocation Subsid","page_number":43,"box":{"x":116,"y":417,"width":392,"height":10}},{"id":"b858652c-8cf3-4751-b743-bb1e7d64a4f5","block_type":"box","text":"iary will be consolidated with the financial statements","page_number":43,"box":{"x":509,"y":417,"width":372,"height":13}},{"id":"6a50f728-2191-4834-8d90-f474ebfda128","block_type":"box","text":"in the Annual and Semi-Annual Financial Statements and Additional Information of BlackRock Global","page_number":43,"box":{"x":116,"y":432,"width":715,"height":10}},{"id":"1378e065-3fa7-4de4-9c47-3d36c8b03f94","block_type":"box","text":"Allocation V.I. Fund. Copies of BlackRock Global Allocation V.I. Fund’s annual and semi-annual reports and","page_number":43,"box":{"x":116,"y":448,"width":763,"height":13}},{"id":"9edb0165-9b52-4182-8316-277b8d23949a","block_type":"box","text":"Annual and Semi-Annual Financial Statements and Additional Information are available at no charge upon","page_number":43,"box":{"x":116,"y":463,"width":743,"height":13}},{"id":"105092ce-700b-40f7-9054-e67fd0e1301c","block_type":"box","text":"request as indicated on the front cover of this SAI.","page_number":43,"box":{"x":116,"y":479,"width":347,"height":13}},{"id":"162c2074-9dd3-4649-96aa-ca85a579c434","block_type":"box","text":"The Subsidiary is not registered under the Investment Company Act, and, unless otherwise noted in","page_number":43,"box":{"x":116,"y":504,"width":689,"height":12}},{"id":"0217328c-3643-4136-857a-8ad8f5241f77","block_type":"box","text":"BlackRock Global Allocation V.I. Fund’s Prospectus or this SAI, is not subject to all the investor protections","page_number":43,"box":{"x":116,"y":519,"width":749,"height":13}},{"id":"d663658a-313e-446c-b22c-796a323d2d5a","block_type":"box","text":"of the Investment Company Act. However, BlackRock Global Allocation V.I. Fund wholly owns and controls","page_number":43,"box":{"x":116,"y":535,"width":763,"height":12}},{"id":"a7a82c45-d038-43e5-9cc4-e183dbe288a8","block_type":"box","text":"the Global Allocation Subsidiary and the Fund and Subsidiary are managed by the Manager, making it","page_number":43,"box":{"x":116,"y":550,"width":714,"height":13}},{"id":"157f81c9-03d8-4c8a-b566-1aa3fd168d75","block_type":"box","text":"unlikely that the Subsidiary will take action contrary to the interests of the Fund and its shareholders. The","page_number":43,"box":{"x":116,"y":566,"width":734,"height":12}},{"id":"b4698a9c-edf0-4cce-8702-063b4e4a19a4","block_type":"box","text":"Company’s Board of Directors has oversight responsibility for the investment activities of BlackRock Global","page_number":43,"box":{"x":117,"y":581,"width":750,"height":13}},{"id":"60ed8b6e-b8de-49af-abac-33a8191f386e","block_type":"box","text":"Allocation V.I. Fund, including with respect to the Fund’s investment in the Subsidiary, and the Fund’s role as","page_number":43,"box":{"x":116,"y":597,"width":761,"height":12}},{"id":"a318addc-ee4f-47db-8ef2-7842cdec847d","block_type":"box","text":"sole shareholder of the Subsidiary. As noted above, the Subsidiary will be subject to the same investment","page_number":43,"box":{"x":116,"y":612,"width":724,"height":13}},{"id":"36e16638-b59e-414e-9d1e-ab62118e8fc1","block_type":"box","text":"restrictions and limitations, and follow the same compliance policies and procedures, as BlackRock Global","page_number":43,"box":{"x":116,"y":628,"width":740,"height":12}},{"id":"d367d635-38da-4ee5-a24b-8a7de66209fe","block_type":"box","text":"Allocation V.I. Fund. The Subsidiary is managed pursuant to compliance policies and procedures that are the","page_number":43,"box":{"x":116,"y":643,"width":757,"height":13}},{"id":"a4e9c27d-95fb-42e4-bf0a-c05c6c7161fa","block_type":"box","text":"same, in all material respects, as the policies and procedures adopted by the Company. In addition, changes in","page_number":43,"box":{"x":116,"y":659,"width":762,"height":12}},{"id":"0848175e-bec9-460b-8e40-970d97414d22","block_type":"box","text":"the laws of the United States and/or the Cayman Islands could result in the inability of BlackRock Global","page_number":43,"box":{"x":116,"y":674,"width":729,"height":13}},{"id":"fb1dd3ea-91cf-45da-9b8a-c7921265be38","block_type":"box","text":"Allocation V.I. Fund and/or the Subsidiary to operate","page_number":43,"box":{"x":116,"y":690,"width":370,"height":12}},{"id":"db79e12c-77cf-48a2-aacc-168b0c65ea35","block_type":"box","text":"as described in BlackRock Global Allocation V.I. Fund’s","page_number":43,"box":{"x":492,"y":690,"width":390,"height":10}},{"id":"603b3808-5f62-447c-b4c1-d3f013d5052d","block_type":"box","text":"Prospectus and this SAI, and could adversely affect BlackRock Global Allocation V.I. Fund. For example, the","page_number":43,"box":{"x":116,"y":705,"width":757,"height":13}},{"id":"2c65571f-71a2-444f-91df-53c592d6569c","block_type":"box","text":"Cayman Islands does not currently impose any income, corporate or capital gains tax, estate duty, inheritance","page_number":43,"box":{"x":117,"y":721,"width":761,"height":12}},{"id":"ac69f182-1110-41f9-ad50-5c3ad8074091","block_type":"box","text":"tax, gift tax or withholding tax on the Subsidiary. If Cayman Islands law changes such that the Subsidiary","page_number":43,"box":{"x":116,"y":736,"width":735,"height":13}},{"id":"68ae6047-5bc5-4a56-858b-fe58fd16cbfd","block_type":"box","text":"must pay Cayman Islands taxes, shareholders of BlackRock Global Allocation V.I. Fund would likely suffer","page_number":43,"box":{"x":116,"y":752,"width":748,"height":12}},{"id":"933646f1-e13a-4e73-a54a-c510184b6475","block_type":"box","text":"decreased investment returns.","page_number":43,"box":{"x":116,"y":767,"width":203,"height":10}},{"id":"5f33979e-42c0-4f43-bd1b-c74246879ca4","block_type":"box","text":"The Subsidiary will not be subject to U.S. federal income tax. The Subsidiary will, however, be considered a","page_number":43,"box":{"x":116,"y":792,"width":747,"height":13}},{"id":"a10c8f23-d3cd-4829-9592-e329d146a430","block_type":"box","text":"controlled foreign corporation, and BlackRock Global Allocation V.I. Fund will be required to include as","page_number":43,"box":{"x":116,"y":807,"width":730,"height":13}},{"id":"32ed8735-400f-4f14-8304-83effaa1109a","block_type":"box","text":"income annually amounts earned by the Subsidiary during that year, whether or not the Subsidiary distributes","page_number":43,"box":{"x":116,"y":823,"width":762,"height":13}},{"id":"349bd946-16bb-4d9e-b4a4-5050fb2d6038","block_type":"box","text":"such amounts to the Fund. Gains from the sales of investments by the Subsidiary will not be eligible for capital","page_number":43,"box":{"x":116,"y":838,"width":767,"height":13}},{"id":"79acfac6-8294-4eda-8f77-47a8a1b31379","block_type":"box","text":"gains treatment but instead will be treated as ordinary income when included in income by the Fund.","page_number":43,"box":{"x":116,"y":854,"width":699,"height":13}},{"id":"2be611cb-e7c6-4a34-8d81-0a9cfbc0a27c","block_type":"box","text":"Furthermore, the requirement for the Fund to distribute net investment income, if any, and net realized capital","page_number":43,"box":{"x":116,"y":869,"width":764,"height":13}},{"id":"dde3be1e-0764-4414-9bd4-012e1fddf61b","block_type":"box","text":"I-18","page_number":43,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"29ba29e7-92cc-44bf-9cf7-ffa423015ed3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":43,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"19241411-f940-44cd-8d05-34661855e5ee","block_type":"box","text":"gain, if any, at least annually will apply to such Subsidiary income, whether or not the Subsidiary makes a","page_number":44,"box":{"x":116,"y":79,"width":735,"height":13}},{"id":"7f1d4428-8e98-4510-bfd9-d04c7e6f6e56","block_type":"box","text":"distribution to the Fund during the taxable year. If the Subsidiary incurs net losses in any year, such losses will","page_number":44,"box":{"x":116,"y":94,"width":764,"height":13}},{"id":"d0031e0b-6b08-4577-b270-24b1330247f3","block_type":"box","text":"not offset the Fund’s income or gains nor carryforward to future years.","page_number":44,"box":{"x":116,"y":110,"width":491,"height":13}},{"id":"f46624ce-c0a9-4f6b-a930-d3d8770245f9","block_type":"box","text":"II. Investment Restrictions","page_number":44,"box":{"x":116,"y":139,"width":237,"height":9}},{"id":"92da7bbb-a3fe-4499-b030-2bd6d7d51910","block_type":"box","text":"The Company has adopted the following fundamental and non-fundamental restrictions and policies","page_number":44,"box":{"x":116,"y":164,"width":731,"height":13}},{"id":"d87e890e-af32-4159-ba2d-9f3e56cf3190","block_type":"box","text":"relating to the investment of the assets of the Funds and their activities. The fundamental policies set","page_number":44,"box":{"x":116,"y":180,"width":729,"height":12}},{"id":"2ae208d2-7e2f-490f-b0fa-98cd41f8ab8f","block_type":"box","text":"forth below may not be changed without the approval of the holders of a majority of the outstanding","page_number":44,"box":{"x":116,"y":195,"width":736,"height":13}},{"id":"57a048d6-2946-42be-beae-b7acdbdfe4f2","block_type":"box","text":"voting shares of each Fund affected (which for this purpose and under the Investment Company Act","page_number":44,"box":{"x":116,"y":211,"width":726,"height":12}},{"id":"01602617-304b-41c2-aafb-d65c45484966","block_type":"box","text":"means the lesser of (i) 67% of the shares present at a meeting at which more than 50% of the","page_number":44,"box":{"x":116,"y":226,"width":678,"height":13}},{"id":"07c02013-5448-4b96-9516-ba645635ed19","block_type":"box","text":"outstanding shares of the affected Fund are represented or (ii) more than 50% of the outstanding shares","page_number":44,"box":{"x":116,"y":242,"width":754,"height":12}},{"id":"2008220b-fc6c-4d6a-b822-7f8d986566e2","block_type":"box","text":"of the affected Fund). The investment objective of each Fund is fundamental, and as such may not be","page_number":44,"box":{"x":116,"y":257,"width":732,"height":13}},{"id":"6b28f56e-7fda-4f8f-b8ca-4521db04c7c4","block_type":"box","text":"changed without the approval of the holders of a majority of the outstanding shares of each such Fund,","page_number":44,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"19860d8a-d560-40fc-be55-dbf1d250a91c","block_type":"box","text":"except that the investment objective of each of BlackRock Capital Appreciation V.I. Fund, BlackRock","page_number":44,"box":{"x":116,"y":288,"width":739,"height":13}},{"id":"06650a3b-a01f-4d0b-99d4-bbb0f5dc2858","block_type":"box","text":"International V.I. Fund, BlackRock International Index V.I. Fund, BlackRock 60/40 Target Allocation","page_number":44,"box":{"x":116,"y":304,"width":742,"height":12}},{"id":"1c8c000e-10ff-4e9b-bb3c-782553acc850","block_type":"box","text":"ETF V.I. Fund, BlackRock Small Cap Index V.I. Fund and BlackRock Advantage Large Cap Value V.I.","page_number":44,"box":{"x":116,"y":319,"width":747,"height":13}},{"id":"fa44b207-0787-48a2-9c4c-da8ded4674a2","block_type":"box","text":"Fund is non-fundamental, and as such may be changed by the Company’s Board of Directors without","page_number":44,"box":{"x":116,"y":335,"width":737,"height":12}},{"id":"1b71f9ce-3968-4b26-b978-4059c193f703","block_type":"box","text":"shareholder approval.","page_number":44,"box":{"x":116,"y":350,"width":158,"height":13}},{"id":"a0528016-910e-44b2-9e11-b8870161cad8","block_type":"box","text":"Restrictions Applicable to BlackRock Government Money Market V.I. Fund","page_number":44,"box":{"x":116,"y":379,"width":557,"height":12}},{"id":"f1deb000-d35c-42ab-b841-abc9d1538d91","block_type":"box","text":"BlackRock Government Money Market V.I. Fund may not purchase any security other than money market","page_number":44,"box":{"x":116,"y":404,"width":746,"height":13}},{"id":"4a20e5a7-62a7-4e9b-b178-99af13d56f46","block_type":"box","text":"and other securities described under “Investment Objectives and Policies” in BlackRock Government Money","page_number":44,"box":{"x":116,"y":420,"width":754,"height":13}},{"id":"90403dc6-caff-4959-a7f5-254bdcc6fb7b","block_type":"box","text":"Market V.I. Fund’s Prospectus. In addition, BlackRock Government Money Market V.I. Fund may not","page_number":44,"box":{"x":116,"y":435,"width":717,"height":13}},{"id":"d56b4fd4-c0cf-4a27-80e5-584149c50f2d","block_type":"box","text":"purchase securities of foreign issuers (including Eurodollar and Yankeedollar obligations). In addition,","page_number":44,"box":{"x":116,"y":451,"width":709,"height":13}},{"id":"f18217a9-361d-4db5-ac93-e4034d16a044","block_type":"box","text":"BlackRock Government Money Market V.I. Fund may not:","page_number":44,"box":{"x":116,"y":466,"width":414,"height":13}},{"id":"e7335841-8cf9-41f9-aa31-d3c49f6d677b","block_type":"box","text":"(1) invest more than 10% of its total assets (taken at market value at the time of each investment) in the","page_number":44,"box":{"x":117,"y":490,"width":719,"height":12}},{"id":"81b90879-0e61-4e73-bd55-e92d0dd0d68f","block_type":"box","text":"securities (other than U.S. Government or government agency securities) of any one issuer (including","page_number":44,"box":{"x":116,"y":505,"width":697,"height":13}},{"id":"0e8c661c-1e5a-448d-aa99-0d635b0f13d0","block_type":"box","text":"repurchase agreements with any one bank) except that up to 25% of the value of the Fund’s total assets may","page_number":44,"box":{"x":116,"y":521,"width":754,"height":12}},{"id":"b21d9b25-9af9-4fca-bbe9-114fb7d8f315","block_type":"box","text":"be invested without regard to such 10% limitation.","page_number":44,"box":{"x":116,"y":536,"width":354,"height":13}},{"id":"9f7a7893-6edd-48e9-95c9-78651e9638d4","block_type":"box","text":"(2) alone, or together with any other Fund or Funds, make investments for the purpose of exercising control","page_number":44,"box":{"x":117,"y":559,"width":748,"height":13}},{"id":"f23ef1df-cd0e-47f1-9e20-cbf2e7fe12d0","block_type":"box","text":"or management.","page_number":44,"box":{"x":116,"y":578,"width":112,"height":10}},{"id":"cb4f4f16-5a91-42fd-ba8b-6e262a0fce28","block_type":"box","text":"(3) purchase securities of other investment compan","page_number":44,"box":{"x":117,"y":598,"width":352,"height":13}},{"id":"a2327aae-9883-4765-8dc1-9767d3548a02","block_type":"box","text":"ies, except in connection with a merger, consolidation,","page_number":44,"box":{"x":469,"y":598,"width":377,"height":13}},{"id":"bb48520d-dfce-4689-9869-90d19ad02403","block_type":"box","text":"acquisition or reorganization.","page_number":44,"box":{"x":116,"y":614,"width":204,"height":12}},{"id":"56606c29-cc94-465a-8bed-4eb1ab0e2110","block_type":"box","text":"(4) purchase or sell interests in oil, gas or other minera","page_number":44,"box":{"x":117,"y":637,"width":376,"height":13}},{"id":"be86e035-6066-4dd7-8651-cde2fd804443","block_type":"box","text":"l exploration or development programs, commodities,","page_number":44,"box":{"x":494,"y":637,"width":374,"height":13}},{"id":"cf689337-da21-44d7-b7a2-d452287a7a09","block_type":"box","text":"commodity contracts or real estate, except that the Fund may invest in securities secured by real estate or","page_number":44,"box":{"x":116,"y":652,"width":727,"height":13}},{"id":"fc508878-a344-42e4-ae4e-46a5275a1785","block_type":"box","text":"interests therein or securities issued by companies which invest in real estate or interest therein.","page_number":44,"box":{"x":116,"y":668,"width":656,"height":13}},{"id":"5c3b983f-c74b-4c8d-8644-d3368acab903","block_type":"box","text":"(5) purchase any securities on margin except that the Company may obtain such short-term credit as may be","page_number":44,"box":{"x":117,"y":691,"width":751,"height":13}},{"id":"30c42dff-7895-46b0-abce-b228a3d0c7bd","block_type":"box","text":"necessary for the clearance of purchases and sales of portfolio securities.","page_number":44,"box":{"x":116,"y":707,"width":498,"height":12}},{"id":"d4142975-89fa-4887-8828-48d6b8ca2a4c","block_type":"box","text":"(6) make short sales of securities or maintain a short position or write, purchase or sell puts, calls, straddles,","page_number":44,"box":{"x":117,"y":730,"width":746,"height":13}},{"id":"d9ff6da6-2da0-4a7a-a7ac-b3ce181970bb","block_type":"box","text":"spreads or combination thereof.","page_number":44,"box":{"x":116,"y":745,"width":221,"height":13}},{"id":"4d62cfa8-a86e-403a-9af9-ed5e72721f7c","block_type":"box","text":"(7) make loans to other persons; provided that the Fund may purchase money market securities or enter into","page_number":44,"box":{"x":117,"y":769,"width":751,"height":13}},{"id":"597e637a-250e-4c07-a657-95f3763a3a86","block_type":"box","text":"repurchase agreements; lend securities owned or held by","page_number":44,"box":{"x":116,"y":784,"width":390,"height":13}},{"id":"c4582ce8-740e-4e3c-ae5e-d5a476da2dfd","block_type":"box","text":"it pursuant to (8) below; and provided further that","page_number":44,"box":{"x":510,"y":784,"width":351,"height":13}},{"id":"87aec176-73ac-4747-addc-23b8aa6dcede","block_type":"box","text":"for purposes of this restriction the acquisition of a portion of an issue of publicly distributed bonds,","page_number":44,"box":{"x":116,"y":800,"width":689,"height":13}},{"id":"4ee4c888-8ee2-4424-a30d-25f637aeaedf","block_type":"box","text":"debentures or other corporate debt securities or of government obligations, short-term commercial paper,","page_number":44,"box":{"x":116,"y":815,"width":731,"height":13}},{"id":"efa53793-0088-4ae8-9d59-955798780760","block_type":"box","text":"certificates of deposit and bankers’ acceptances shall not be deemed the making of a loan.","page_number":44,"box":{"x":116,"y":831,"width":620,"height":13}},{"id":"108a7241-3ff5-4ed2-8183-d98d29e7bb26","block_type":"box","text":"(8) lend its portfolio securities in excess of 33","page_number":44,"box":{"x":117,"y":854,"width":311,"height":13}},{"id":"10c8bbe0-798e-4919-a1bf-1ee220ec8564","block_type":"box","text":"1","page_number":44,"box":{"x":430,"y":855,"width":4,"height":6}},{"id":"8115e9fa-5499-4805-82f2-1dc235d40aa2","block_type":"box","text":"/","page_number":44,"box":{"x":435,"y":855,"width":5,"height":9}},{"id":"c3e3aadd-36e5-4ca1-883a-cddd79cf33ed","block_type":"box","text":"3","page_number":44,"box":{"x":440,"y":861,"width":5,"height":6}},{"id":"3ca8e637-f5a6-4a38-862f-99ee4cbab249","block_type":"box","text":"% of its total assets, taken at market value at the time of the","page_number":44,"box":{"x":447,"y":854,"width":416,"height":12}},{"id":"9f0a5c5f-f273-4b62-a6d2-15add1957c5d","block_type":"box","text":"loan, provided that such loans are made according to the guidelines set forth below and the guidelines of the","page_number":44,"box":{"x":116,"y":869,"width":751,"height":13}},{"id":"b3b11ffd-61f2-4321-ba10-1e52c4cfb803","block_type":"box","text":"I-19","page_number":44,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"10a2b011-f916-4f37-913a-1224d1731fd1","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":44,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"69a444c7-5807-4299-b3ef-528efec8d06b","block_type":"box","text":"SEC and the Company’s Board of Directors, including maintaining collateral from the borrower equal at all","page_number":45,"box":{"x":116,"y":79,"width":748,"height":13}},{"id":"8c48788d-e200-445f-8029-c2497fd1388a","block_type":"box","text":"times to the current market value of the securities loaned.","page_number":45,"box":{"x":116,"y":94,"width":397,"height":10}},{"id":"ab011de6-d09f-428a-8876-e482b52fb304","block_type":"box","text":"(9) borrow amounts in excess of 20% of its total assets, taken at market value, and then only from banks as a","page_number":45,"box":{"x":117,"y":118,"width":761,"height":12}},{"id":"9fab2a70-bcbb-4297-bc03-d59e76a7c412","block_type":"box","text":"temporary measure for extraordinary or emergency purposes. The borrowing provisions shall not apply to","page_number":45,"box":{"x":116,"y":133,"width":738,"height":13}},{"id":"4887835d-3236-4acc-8950-e50ed8943d5d","block_type":"box","text":"reverse repurchase agreements. Usually only “leveraged” investment companies may borrow in excess of 5%","page_number":45,"box":{"x":116,"y":149,"width":754,"height":12}},{"id":"2eb6ea0e-1d8c-48c8-a60c-5e8161a54e2f","block_type":"box","text":"of their assets; however, the Fund will not borrow to increase income but only to meet redemption requests","page_number":45,"box":{"x":116,"y":164,"width":744,"height":13}},{"id":"701b7895-0398-4605-be63-3c492098b9fa","block_type":"box","text":"which might otherwise require untimely dispositions of portfolio securities. The Fund will not purchase","page_number":45,"box":{"x":116,"y":180,"width":716,"height":12}},{"id":"8781e3a0-b8ef-440e-ad7e-6f055f5c1eeb","block_type":"box","text":"securities while borrowings are outstanding.","page_number":45,"box":{"x":116,"y":195,"width":305,"height":13}},{"id":"1b2dca00-3273-44ab-8021-ebdda858af2a","block_type":"box","text":"(10) mortgage, pledge, hypothecate or in any manner transfer (except as provided in (8) above), as security for","page_number":45,"box":{"x":117,"y":218,"width":764,"height":13}},{"id":"a1d486c3-acd5-4443-8f27-d4dc42ddfb6b","block_type":"box","text":"indebtedness, any securities owned or held by the Fund except as may be necessary in connection with","page_number":45,"box":{"x":116,"y":234,"width":709,"height":13}},{"id":"22a77851-be12-441f-a524-2df1dea2baff","block_type":"box","text":"borrowings mentioned in (9) above, and then such mortgaging, pledging or hypothecating may not exceed","page_number":45,"box":{"x":116,"y":249,"width":738,"height":13}},{"id":"bc7edaf9-6e98-4b6f-ba2e-44bbc9d02b18","block_type":"box","text":"25% of the Fund’s total assets, taken at market value at the time thereof. Although the Fund has the authority","page_number":45,"box":{"x":116,"y":265,"width":765,"height":13}},{"id":"16ae8bab-49ac-4192-b9ae-0267c03f5794","block_type":"box","text":"to mortgage, pledge or hypothecate more than 10% of its total assets under this investment restriction (10), as","page_number":45,"box":{"x":116,"y":280,"width":764,"height":13}},{"id":"d9bf0111-bd7e-4361-8309-4633aaf72c58","block_type":"box","text":"a matter of operating policy, the Fund will not mortgage, pledge or hypothecate in excess of 10% of total net","page_number":45,"box":{"x":116,"y":296,"width":757,"height":13}},{"id":"0ef314a3-4962-44f2-a743-c94ff7cb95ad","block_type":"box","text":"assets.","page_number":45,"box":{"x":116,"y":314,"width":42,"height":7}},{"id":"ad57e562-8b55-423e-9aa4-90d1b8a78083","block_type":"box","text":"(11) act as an underwriter of securities, except insofar as the Fund may be deemed an underwriter under the","page_number":45,"box":{"x":117,"y":335,"width":747,"height":12}},{"id":"fff140d1-b6db-4d09-9229-48b660fd9dd3","block_type":"box","text":"Securities Act of 1933, as amended (the “Securities Act”), in selling portfolio securities.","page_number":45,"box":{"x":116,"y":350,"width":603,"height":13}},{"id":"7099d140-b85a-470d-bf0e-d39c67886d70","block_type":"box","text":"(12) purchase, either alone or together with any other Fund or Funds, more than 10% of the outstanding","page_number":45,"box":{"x":117,"y":373,"width":729,"height":13}},{"id":"d15c8a2d-3ac2-40f3-a80d-be6cd0cdd548","block_type":"box","text":"securities of an issuer except that such restriction does not apply to U.S. Government or government agency","page_number":45,"box":{"x":116,"y":389,"width":747,"height":13}},{"id":"d85f033a-f7e8-4877-ae54-e23277712861","block_type":"box","text":"securities, bank money instruments or repurchase agreements.","page_number":45,"box":{"x":116,"y":404,"width":429,"height":13}},{"id":"75a47c6d-69dc-425c-abd3-8e81533f7b52","block_type":"box","text":"(13) invest in securities (except for repurchase agreements or variable amount master notes) with legal or","page_number":45,"box":{"x":117,"y":428,"width":725,"height":12}},{"id":"a44e3ae5-05fb-4a14-ab22-ee4f87cd7445","block_type":"box","text":"contractual restrictions on resale or for which no readily available market exists or in securities of issuers","page_number":45,"box":{"x":116,"y":443,"width":726,"height":13}},{"id":"1e39c2f5-de75-4300-9208-bcdb1138f6ae","block_type":"box","text":"(other than issuers of government agency securities)","page_number":45,"box":{"x":117,"y":459,"width":356,"height":12}},{"id":"7f3fcab1-05bd-4dae-916b-08ccf1455680","block_type":"box","text":"having a record, together with predecessors, of less than","page_number":45,"box":{"x":479,"y":459,"width":387,"height":12}},{"id":"7b0af177-b788-4007-90f5-ee80cefe3397","block_type":"box","text":"three years of continuous operation if, regarding all such securities, more than 10% of its total assets (taken at","page_number":45,"box":{"x":116,"y":474,"width":764,"height":13}},{"id":"e517f0ea-d238-4c51-a130-946f9cfc9aa5","block_type":"box","text":"market value) would be invested in such securities.","page_number":45,"box":{"x":116,"y":490,"width":350,"height":12}},{"id":"90e1c61a-12a7-4366-9a15-83f5af359f3f","block_type":"box","text":"(14) enter into repurchase agreements if, as a result thereof, more than 10% of the Fund’s total assets (taken","page_number":45,"box":{"x":117,"y":513,"width":750,"height":13}},{"id":"a66d902c-8f99-4735-8773-4c1071d404df","block_type":"box","text":"at market value at the time of each investment) would be subject to repurchase agreements maturing in more","page_number":45,"box":{"x":116,"y":528,"width":754,"height":13}},{"id":"ffe684a3-bd8e-46f0-a7c6-33e6579c5d0f","block_type":"box","text":"than seven days.","page_number":45,"box":{"x":116,"y":544,"width":112,"height":13}},{"id":"d6783b39-6cd0-4278-92de-9d7e7fad7aae","block_type":"box","text":"(15) enter into reverse repurchase agreements if, as","page_number":45,"box":{"x":117,"y":567,"width":350,"height":13}},{"id":"eee48f0b-f39d-4881-b304-e389446ed295","block_type":"box","text":"a result thereof, the Fund’s obligations with respect to","page_number":45,"box":{"x":472,"y":567,"width":373,"height":13}},{"id":"bd6bfdfb-b520-407e-94a2-9c5b5f3a2a04","block_type":"box","text":"reverse repurchase agreements would exceed one-third of the Fund’s net assets (defined to be total assets,","page_number":45,"box":{"x":116,"y":583,"width":727,"height":12}},{"id":"84235843-44d1-46d6-9d5d-b574e53e1116","block_type":"box","text":"taken at market value, less liabilities other than reverse repurchase agreements).","page_number":45,"box":{"x":116,"y":598,"width":550,"height":13}},{"id":"541bd75c-b0de-45f3-a8c1-ea0ddd473ca9","block_type":"box","text":"(16) invest more than 25% of its total assets (taken at market value at the time of each investment) in the","page_number":45,"box":{"x":117,"y":621,"width":728,"height":13}},{"id":"e55a3da2-abeb-4465-98e1-5926e43b31a5","block_type":"box","text":"securities of issuers in any particular industry (other than U.S. Government securities, government agency","page_number":45,"box":{"x":116,"y":637,"width":730,"height":13}},{"id":"94837bd6-5542-419f-a1ee-310e13887f82","block_type":"box","text":"securities or bank money instruments).","page_number":45,"box":{"x":116,"y":652,"width":268,"height":13}},{"id":"7816d4fa-d9fc-4bde-8823-6891361a0fc0","block_type":"box","text":"Restrictions Applicable to each of the Funds (Except BlackRock 60/40 Target Allocation ETF V.I. Fund,","page_number":45,"box":{"x":116,"y":681,"width":762,"height":13}},{"id":"6caf1954-5de7-4b6c-9644-66b6fa7baf1d","block_type":"box","text":"BlackRock Government Money Market V.I. Fund, BlackRock International Index V.I. Fund and","page_number":45,"box":{"x":116,"y":696,"width":703,"height":13}},{"id":"d1bf5d2f-24f3-449d-b9e4-c7c2663040d6","block_type":"box","text":"BlackRock Small Cap Index V.I. 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Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":46,"box":{"x":117,"y":102,"width":704,"height":13}},{"id":"ac207790-d812-476b-b74c-bff85a3148e6","block_type":"box","text":"Investment Company Act.","page_number":46,"box":{"x":116,"y":118,"width":181,"height":12}},{"id":"81223713-8b67-4b9f-a636-7bd9ee433d3d","block_type":"box","text":"1","page_number":46,"box":{"x":299,"y":118,"width":4,"height":6}},{"id":"b38973d2-985c-4c94-a326-5a9203d98aea","block_type":"box","text":"2. Invest more than 25% of its assets, taken at market value, in the securities of issuers in any particular","page_number":46,"box":{"x":116,"y":141,"width":719,"height":13}},{"id":"c0c4e680-e34a-442f-a875-e8c6d94f6b9e","block_type":"box","text":"industry (excluding the U.S. Government and its agencies and instrumentalities).","page_number":46,"box":{"x":116,"y":156,"width":555,"height":13}},{"id":"94e66d66-0edc-416a-b9bc-977f51943db2","block_type":"box","text":"2","page_number":46,"box":{"x":673,"y":157,"width":5,"height":6}},{"id":"554b58d3-cabe-413e-8795-5102ad0c94aa","block_type":"box","text":"3. Make investments for the purpose of exercising control or management.","page_number":46,"box":{"x":117,"y":180,"width":517,"height":12}},{"id":"8cbe45b1-3078-48b8-b305-c5f9bfa72a02","block_type":"box","text":"3","page_number":46,"box":{"x":635,"y":180,"width":5,"height":6}},{"id":"20f255bf-7db5-485d-a224-45ec3e94a897","block_type":"box","text":"4. Purchase or sell real estate, except that the Fund may invest in securities directly or indirectly secured by","page_number":46,"box":{"x":116,"y":203,"width":738,"height":13}},{"id":"1112f740-007e-4548-8195-8fa7f5b9b17d","block_type":"box","text":"real estate or interests therein or issued by companies which invest in real estate or interests therein.","page_number":46,"box":{"x":116,"y":218,"width":688,"height":13}},{"id":"186c3902-de0f-4bdb-83e7-ac1ce17c9836","block_type":"box","text":"5. Make loans to other persons, except that the acquisition of bonds, debentures or other corporate debt","page_number":46,"box":{"x":116,"y":242,"width":724,"height":12}},{"id":"a5245c03-0190-41eb-ad77-98f1127eaefb","block_type":"box","text":"securities and investment in government obligations, commercial paper, pass-through instruments, certificates","page_number":46,"box":{"x":116,"y":257,"width":760,"height":13}},{"id":"81afd67d-78b2-4273-98a3-036f27050cb3","block_type":"box","text":"of deposit, bankers acceptances, repurchase agreements","page_number":46,"box":{"x":116,"y":273,"width":384,"height":12}},{"id":"a7e0dfea-63d4-432f-8db5-f82da4781456","block_type":"box","text":"or any similar instruments shall not be deemed to be","page_number":46,"box":{"x":505,"y":273,"width":363,"height":12}},{"id":"7b5ba04d-8a5e-4408-b0b2-abbfa4605cb3","block_type":"box","text":"the making of a loan, and except further that the Fund","page_number":46,"box":{"x":116,"y":288,"width":379,"height":13}},{"id":"807d2af0-f031-4c16-a555-b1f790680aa7","block_type":"box","text":"may lend its portfolio securities, provided that the","page_number":46,"box":{"x":499,"y":288,"width":346,"height":13}},{"id":"557b4781-d86e-4a3b-b6f0-4f27c1d8798f","block_type":"box","text":"lending of portfolio securities may be made only in accordance with applicable law and the guidelines set","page_number":46,"box":{"x":116,"y":304,"width":728,"height":12}},{"id":"b529d80a-cbd2-4a3f-aa05-be7c1df5f5c8","block_type":"box","text":"forth in the Prospectus and Statement of Additional Information, as they may be amended from time to time.","page_number":46,"box":{"x":116,"y":319,"width":756,"height":13}},{"id":"4cd4c9a3-f924-452e-8fae-27d66ea9c22f","block_type":"box","text":"4","page_number":46,"box":{"x":873,"y":320,"width":6,"height":6}},{"id":"df70cfd5-1fa4-4675-9c4d-ecb8520f3129","block_type":"box","text":"6. Issue senior securities to the extent such","page_number":46,"box":{"x":117,"y":342,"width":292,"height":10}},{"id":"4a106e9e-310b-4b5e-a621-740896b0a146","block_type":"box","text":"issuance would violate applicable law.","page_number":46,"box":{"x":414,"y":342,"width":264,"height":13}},{"id":"8f3e33bb-badb-4963-9281-2ab308009ebc","block_type":"box","text":"7. Borrow money, except that (i) the Fund may borrow from banks (as defined in the Investment Company","page_number":46,"box":{"x":117,"y":366,"width":744,"height":12}},{"id":"115d837e-4ece-4e51-a099-8ab37cbb6255","block_type":"box","text":"Act) in amounts up to 33","page_number":46,"box":{"x":116,"y":382,"width":174,"height":12}},{"id":"5be84e51-e439-4243-8cf1-334524b27be8","block_type":"box","text":"1","page_number":46,"box":{"x":292,"y":382,"width":4,"height":6}},{"id":"9c7dccfd-29b6-4098-860c-edf7b2cdb8ad","block_type":"box","text":"/","page_number":46,"box":{"x":297,"y":382,"width":5,"height":9}},{"id":"6f0edfc8-ae25-468e-bb80-c8ab95be73c3","block_type":"box","text":"3","page_number":46,"box":{"x":302,"y":388,"width":4,"height":6}},{"id":"a7cfb87a-da6b-407e-948a-5c1eb8b0fa5b","block_type":"box","text":"% of its total assets (including the amount borrowed), (ii) the Fund may borrow","page_number":46,"box":{"x":309,"y":381,"width":555,"height":13}},{"id":"fb51f068-bb2d-4f1b-abb9-fe3a66325f15","block_type":"box","text":"up to an additional 5% of its total assets for temporary purposes, (iii) the Fund may obtain such short-term","page_number":46,"box":{"x":116,"y":397,"width":745,"height":12}},{"id":"9ea1237e-e64a-4837-8956-be3ecb1239dc","block_type":"box","text":"credit as may be necessary for the clearance of purchases and sales of portfolio securities and (iv) the Fund","page_number":46,"box":{"x":116,"y":412,"width":736,"height":13}},{"id":"adb48ce5-7871-4b8c-9223-3f1aeac9f325","block_type":"box","text":"may purchase securities on margin to the extent permitted by applicable law. The Fund may not pledge its","page_number":46,"box":{"x":116,"y":428,"width":736,"height":12}},{"id":"4f78d617-4ee5-44f0-85ff-071bddc9671d","block_type":"box","text":"assets other than to secure such borrowings or, to the extent permitted by the Fund’s investment policies as set","page_number":46,"box":{"x":116,"y":443,"width":765,"height":13}},{"id":"0405aa9c-16cf-481c-b0d5-d98633cc5980","block_type":"box","text":"forth in the Prospectus and Statement of Additional Information, as they may be amended from time to time,","page_number":46,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"2483007b-7d8f-42a3-9afb-8d8b78489d09","block_type":"box","text":"in connection with hedging transactions, short sales, wh","page_number":46,"box":{"x":116,"y":474,"width":388,"height":13}},{"id":"9949685a-f827-4104-83e0-b77548a107a6","block_type":"box","text":"en-issued and forward commitment transactions and","page_number":46,"box":{"x":505,"y":474,"width":366,"height":10}},{"id":"80d302d2-a243-4017-8a02-ec051ce0755b","block_type":"box","text":"similar investment strategies.","page_number":46,"box":{"x":116,"y":490,"width":199,"height":12}},{"id":"583af1e3-433c-49ad-8c41-8166b76fed34","block_type":"box","text":"5","page_number":46,"box":{"x":316,"y":490,"width":5,"height":6}},{"id":"ec4f0949-46e4-4d3b-97f3-56e47506bd78","block_type":"box","text":"8. Underwrite securities of other issuers except insofar as the Fund technically may be deemed an underwriter","page_number":46,"box":{"x":117,"y":513,"width":758,"height":13}},{"id":"fc7be6b4-0a92-4924-9041-ea217000ddb1","block_type":"box","text":"under the Securities Act in selling portfolio securities.","page_number":46,"box":{"x":116,"y":528,"width":367,"height":13}},{"id":"24aae997-687c-4ee0-a395-202b2a323df8","block_type":"box","text":"9. Purchase or sell commodities or contracts on commodities, except to the extent the Fund may do so in","page_number":46,"box":{"x":116,"y":552,"width":727,"height":12}},{"id":"da1dc0ce-1803-49c9-9971-84ad01935fab","block_type":"box","text":"accordance with applicable law and the Prospectus and Statement of Additional Information, as they may be","page_number":46,"box":{"x":116,"y":567,"width":754,"height":13}},{"id":"3184ae36-feba-401f-ba41-e52f742b9364","block_type":"box","text":"amended from time to time, and without registering as a commodity pool operator under the Commodity","page_number":46,"box":{"x":116,"y":583,"width":734,"height":12}},{"id":"35b26a5d-a9bf-41e4-8016-94a8e38639f7","block_type":"box","text":"Exchange Act.","page_number":46,"box":{"x":116,"y":598,"width":99,"height":13}},{"id":"74db6ad4-6fb4-4b90-a9af-4fb14660f03b","block_type":"box","text":"1","page_number":46,"box":{"x":128,"y":627,"width":4,"height":4}},{"id":"ef21176b-b9a3-4e9e-b436-58647a9968e7","block_type":"box","text":"Though BlackRock S&P 500 Index V.I. Fund is classified as a diversified investment company under the Investment Company","page_number":46,"box":{"x":146,"y":626,"width":732,"height":10}},{"id":"df815da8-cac0-47f0-a659-c630331a8a12","block_type":"box","text":"Act, this restriction is not applicable to that Fund because it was formerly classified as a non-diversified investment company","page_number":46,"box":{"x":146,"y":636,"width":721,"height":11}},{"id":"4350d1eb-e4c6-4a60-8149-3f4ef8024f2d","block_type":"box","text":"under the Investment Company Act.","page_number":46,"box":{"x":146,"y":647,"width":210,"height":10}},{"id":"e33860c1-78c1-4783-a393-9006733323ba","block_type":"box","text":"2","page_number":46,"box":{"x":128,"y":658,"width":4,"height":4}},{"id":"d09d94f1-1e5d-482d-a76c-32a9f9f7f17d","block_type":"box","text":"For purposes of this restriction, states, municipalities and their political subdivisions are not considered to be part of any","page_number":46,"box":{"x":146,"y":657,"width":698,"height":10}},{"id":"2e33b3f9-b216-4b4e-8b17-f6a1d8ac9827","block_type":"box","text":"industry. For purposes of this restriction, each Fund uses the classifications and sub-classifications of MSCI, Inc. (“MSCI”) as","page_number":46,"box":{"x":146,"y":667,"width":727,"height":11}},{"id":"54185ab1-18a0-476f-8f4e-4af8bded205b","block_type":"box","text":"a guide to identify industries. To the extent that an industry classification or sub-classification is not provided by MSCI,","page_number":46,"box":{"x":147,"y":678,"width":693,"height":10}},{"id":"aaca5c72-5109-4c82-b5f7-dfa601df5863","block_type":"box","text":"BlackRock Global Allocation V.I. Fund and BlackRock Managed Volatility V.I. Fund may utilize any one or more of the","page_number":46,"box":{"x":146,"y":688,"width":700,"height":10}},{"id":"8aaf8d5d-3c7d-47cd-94b5-98c85052d728","block_type":"box","text":"industry classifications or sub-classifications used by one or more other widely recognized market indexes or rating group","page_number":46,"box":{"x":146,"y":698,"width":704,"height":11}},{"id":"b7a790de-3556-4ad6-8e75-28714e2b0160","block_type":"box","text":"indexes, one or more third party providers of industry classifications, and/or as defined by Fund Management. Currently, for","page_number":46,"box":{"x":146,"y":709,"width":724,"height":10}},{"id":"1caf2da3-c8c4-4b04-b9bc-8445cd88ec73","block_type":"box","text":"industry classifications or sub-classifications not provided by MSCI, BlackRock Global Allocation V.I. Fund and BlackRock","page_number":46,"box":{"x":146,"y":719,"width":719,"height":10}},{"id":"464047e5-131e-4a8e-94fb-0aa671ed93ba","block_type":"box","text":"Managed Volatility V.I. Fund use the classifications of Barclays PLC.","page_number":46,"box":{"x":146,"y":729,"width":399,"height":11}},{"id":"4b03e54e-fe59-4070-ab38-98c5ebe69eb7","block_type":"box","text":"3","page_number":46,"box":{"x":128,"y":740,"width":4,"height":5}},{"id":"e653087d-0eaa-4898-83ea-8bc0e5114d5e","block_type":"box","text":"In the case of BlackRock Advantage Large Cap Core V.I. Fund, BlackRock Advantage Large Cap Value V.I. Fund, BlackRock","page_number":46,"box":{"x":146,"y":740,"width":731,"height":10}},{"id":"72a12867-9a8a-4462-ab0b-fd21f2f72980","block_type":"box","text":"Advantage SMID Cap V.I. Fund, BlackRock Basic Value V.I. Fund, BlackRock Equity Dividend V.I. Fund, BlackRock Global","page_number":46,"box":{"x":146,"y":750,"width":729,"height":10}},{"id":"8b4674af-d096-49c0-9825-8f8c4b4dbe01","block_type":"box","text":"Allocation V.I. Fund, BlackRock International V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund and BlackRock","page_number":46,"box":{"x":146,"y":760,"width":700,"height":11}},{"id":"a455fd0f-1f7a-4a7e-b7b0-4f02edca14d9","block_type":"box","text":"Managed Volatility V.I. Fund investments in wholly-owned investment entities created under the laws of certain countries will","page_number":46,"box":{"x":146,"y":771,"width":731,"height":10}},{"id":"342f0f5e-5e61-4042-a531-7f9c1ca75ac6","block_type":"box","text":"not be deemed to be the making of investments for the purpose of exercising control or management.","page_number":46,"box":{"x":146,"y":781,"width":585,"height":10}},{"id":"368bd756-ecc7-4556-851d-e72b7e6ee3ef","block_type":"box","text":"4","page_number":46,"box":{"x":128,"y":792,"width":4,"height":5}},{"id":"afae0048-d449-4588-833f-265829c658a7","block_type":"box","text":"With respect to restriction 5, BlackRock International V.I. Fund and BlackRock Large Cap Focus Growth V.I. Fund may also","page_number":46,"box":{"x":146,"y":791,"width":728,"height":11}},{"id":"786d60e5-fc6b-496f-a8f1-79ad0549d0ad","block_type":"box","text":"make loans as permitted by an exemptive order issued to the Fund by the Securities and Exchange Commission.","page_number":46,"box":{"x":146,"y":802,"width":647,"height":10}},{"id":"d3515104-5ff8-4854-b922-783de82ce48d","block_type":"box","text":"5","page_number":46,"box":{"x":128,"y":813,"width":4,"height":4}},{"id":"74af1d22-7d57-4167-a7f5-84d343c46b13","block_type":"box","text":"With respect to restriction 7(i), BlackRock International V.I. Fund and BlackRock Large Cap Focus Growth V.I. Fund may","page_number":46,"box":{"x":146,"y":812,"width":714,"height":10}},{"id":"effd9716-9136-4da6-bf29-be7bc49e47d0","block_type":"box","text":"borrow from entities other than banks.","page_number":46,"box":{"x":147,"y":822,"width":224,"height":8}},{"id":"aae95491-0b4b-4e87-b492-3e4e67e9eeb1","block_type":"box","text":"I-21","page_number":46,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"3c9ad076-5ae8-484c-bcfd-6f919b32dbd4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":46,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"26795bd3-0445-4129-bd78-7e8efed94742","block_type":"box","text":"Under the Funds’ non-fundamental investment restric","page_number":47,"box":{"x":116,"y":79,"width":371,"height":10}},{"id":"4705df9a-f41c-4c9e-b450-986de50bdf10","block_type":"box","text":"tions, which may be changed by the Board of Directors","page_number":47,"box":{"x":487,"y":79,"width":383,"height":12}},{"id":"3b181fba-2661-4f74-9798-f691b0b4cc83","block_type":"box","text":"without shareholder approval, none of the F","page_number":47,"box":{"x":116,"y":94,"width":307,"height":13}},{"id":"916ba7db-746f-4199-a045-e035447e6147","block_type":"box","text":"unds (unless noted otherwise below) may:","page_number":47,"box":{"x":424,"y":94,"width":289,"height":13}},{"id":"a7b46b7d-59c6-41a7-a2b2-33f8865787ce","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment Company","page_number":47,"box":{"x":116,"y":116,"width":763,"height":12}},{"id":"7a6162e0-770d-4b84-825a-b89b776bd159","block_type":"box","text":"Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end investment","page_number":47,"box":{"x":116,"y":131,"width":739,"height":13}},{"id":"eaa85b3c-ca09-4970-9673-b2bc7f346fc6","block_type":"box","text":"company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":47,"box":{"x":116,"y":146,"width":717,"height":13}},{"id":"ea91b79b-28cd-4365-b7d1-704d528612b0","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased","page_number":47,"box":{"x":116,"y":161,"width":746,"height":13}},{"id":"dd8c2188-7ab8-4883-8072-2c7d4fa94902","block_type":"box","text":"by another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":47,"box":{"x":116,"y":177,"width":749,"height":12}},{"id":"3066e76e-b389-48bc-a7e1-66e716de60b3","block_type":"box","text":"b. Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":47,"box":{"x":116,"y":198,"width":735,"height":13}},{"id":"1d111519-5233-491b-9681-c0ffe6fef467","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":47,"box":{"x":116,"y":214,"width":724,"height":12}},{"id":"9ff3caed-0874-4cee-add3-aadd43c51ade","block_type":"box","text":"Except with respect to restriction 7, (restriction 9 for BlackRock Government Money Market V.I. Fund), if a","page_number":47,"box":{"x":116,"y":235,"width":754,"height":13}},{"id":"8413455f-4be5-4f7c-98ee-2edf913fc110","block_type":"box","text":"percentage restriction on the investment or use of assets set forth above is adhered to at the time a transaction","page_number":47,"box":{"x":116,"y":251,"width":760,"height":12}},{"id":"5d3fa4e1-9b84-4727-aff4-da368cd25d35","block_type":"box","text":"is effected, later changes in percentages resulting from changing values will not be considered a violation.","page_number":47,"box":{"x":116,"y":266,"width":726,"height":13}},{"id":"01d6af31-752e-4ab3-a1c7-4cbb1a30c978","block_type":"box","text":"Each Fund is classified as diversified under the Investment Company Act. This means that the Fund may not","page_number":47,"box":{"x":116,"y":288,"width":751,"height":12}},{"id":"7a5ad292-377f-4ed7-a02a-5adb962c18a9","block_type":"box","text":"purchase securities of an issuer (other than (i) obligati","page_number":47,"box":{"x":116,"y":303,"width":371,"height":13}},{"id":"15e462c2-6076-491a-b03e-af7aa0077886","block_type":"box","text":"ons issued or guaranteed by the U.S. government, its","page_number":47,"box":{"x":488,"y":303,"width":363,"height":13}},{"id":"b134d5bc-0d80-4fd6-a2a0-37b69cf6ee75","block_type":"box","text":"agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to 75% of its","page_number":47,"box":{"x":116,"y":318,"width":744,"height":13}},{"id":"ee9e6c37-40e2-4745-afb3-91a6c7d33011","block_type":"box","text":"total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or (b) the","page_number":47,"box":{"x":116,"y":333,"width":763,"height":13}},{"id":"64b4dfc8-796c-478d-b420-4e405fa0b003","block_type":"box","text":"Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":47,"box":{"x":116,"y":349,"width":717,"height":12}},{"id":"a5abd5bc-976f-4ef4-bd8f-a21f2590de2f","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. BlackRock","page_number":47,"box":{"x":116,"y":364,"width":735,"height":13}},{"id":"9174d329-2f7b-4068-b802-c93e16abe76f","block_type":"box","text":"S&P 500 Index V.I. Fund intends to be diversified in approximately the same proportion as its Underlying","page_number":47,"box":{"x":116,"y":379,"width":737,"height":13}},{"id":"808ddc12-3df4-497c-8100-ecfffff23f93","block_type":"box","text":"Index (as defined in the Fund’s Prospectus) is diversified. Under the Investment Company Act, a Fund cannot","page_number":47,"box":{"x":116,"y":394,"width":757,"height":13}},{"id":"233aa1af-e4ce-4323-a7d4-71fe9e16fa52","block_type":"box","text":"change its classification from diversified to non-diversified without shareholder approval. However, while","page_number":47,"box":{"x":116,"y":410,"width":733,"height":12}},{"id":"e3271690-1534-4d6a-901e-0b374a356196","block_type":"box","text":"BlackRock S&P 500 Index V.I. Fund is classified as “diversified,” under applicable no-action relief from the","page_number":47,"box":{"x":116,"y":425,"width":750,"height":13}},{"id":"421832d3-bae9-4650-a67b-4c9cdab90c5e","block_type":"box","text":"SEC staff, the Fund may become non-diversified, as defined in the Investment Company Act, solely as a result","page_number":47,"box":{"x":116,"y":440,"width":760,"height":13}},{"id":"0b2ec3f0-1f37-4638-9fc8-c91a3d6f7245","block_type":"box","text":"of a change in relative market capitalization or index weighting of one or more constituents of its Underlying","page_number":47,"box":{"x":116,"y":455,"width":755,"height":13}},{"id":"0a8f9bc4-a66e-4491-9b94-72a66524efb9","block_type":"box","text":"Index, and such a change will not require shareholder approval.","page_number":47,"box":{"x":116,"y":471,"width":442,"height":12}},{"id":"96f69ac1-9e47-4816-bc78-171ddc1bfa84","block_type":"box","text":"The Global Allocation Subsidiary will follow BlackRock Global Allocation V.I. Fund’s fundamental and","page_number":47,"box":{"x":116,"y":492,"width":725,"height":13}},{"id":"28ff134b-a828-4eff-9268-d5cf13aa62b8","block_type":"box","text":"non-fundamental investment restrictions, described above, with respect to its investments.","page_number":47,"box":{"x":116,"y":508,"width":621,"height":12}},{"id":"ec256218-f02b-4e7e-84d1-9d4761befdc9","block_type":"box","text":"Restrictions Applicable to each of BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock","page_number":47,"box":{"x":116,"y":534,"width":711,"height":12}},{"id":"825cd759-3cc7-4ed6-b909-d6ebab815ec7","block_type":"box","text":"International Index V.I. Fund and BlackRock Small Cap Index V.I. Fund","page_number":47,"box":{"x":116,"y":549,"width":529,"height":13}},{"id":"3c29182a-8023-49fc-86c6-00fcbf52022a","block_type":"box","text":"Under the Funds’ fundamental investment restrictions, none of the Funds may:","page_number":47,"box":{"x":116,"y":573,"width":544,"height":13}},{"id":"1cf46ba9-db18-4b28-8027-6bf89200f6e9","block_type":"box","text":"1. Concentrate its investments in a particular industry, as that term is used in the Investment Company Act.","page_number":47,"box":{"x":117,"y":595,"width":744,"height":12}},{"id":"6873d25f-eeb9-4619-936b-5a5464f909c7","block_type":"box","text":"Except that, with respect to BlackRock International I","page_number":47,"box":{"x":116,"y":610,"width":375,"height":13}},{"id":"2410c7b2-ca36-4fc0-9285-bd77b4977d69","block_type":"box","text":"ndex V.I. Fund and BlackRock Small Cap Index V.I.","page_number":47,"box":{"x":491,"y":610,"width":364,"height":13}},{"id":"95d14dcc-a18b-4cf7-bc38-4fa87256a433","block_type":"box","text":"Fund, each Fund will concentrate to approximately the sam","page_number":47,"box":{"x":116,"y":625,"width":414,"height":13}},{"id":"a4bb4c1e-14d7-4afc-9476-cf04ecbc89e8","block_type":"box","text":"e extent that its Underlying Index concentrates in","page_number":47,"box":{"x":531,"y":625,"width":340,"height":13}},{"id":"52917740-8b53-4e47-af5a-74813888fe17","block_type":"box","text":"the securities of a particular industry or group of industries.","page_number":47,"box":{"x":116,"y":640,"width":412,"height":13}},{"id":"594cf58a-af6e-4c33-a4a0-3f51fe2b76b6","block_type":"box","text":"2. Borrow money, except as permitted under the Investment Company Act.","page_number":47,"box":{"x":116,"y":662,"width":522,"height":13}},{"id":"ed73e476-1706-4d4c-ab55-ecfa096a98eb","block_type":"box","text":"3. Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":47,"box":{"x":117,"y":684,"width":664,"height":13}},{"id":"77c7aa28-ceae-47b3-bcef-00925febbba0","block_type":"box","text":"4. Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments that are","page_number":47,"box":{"x":116,"y":706,"width":767,"height":13}},{"id":"ee15a4a8-d792-44cf-979f-9f718a32dcb5","block_type":"box","text":"secured by, or linked to, real estate or interests therein, securities of real estate investment trusts, mortgage","page_number":47,"box":{"x":116,"y":721,"width":741,"height":13}},{"id":"1bc5cace-2b80-4bf9-80dd-001f4cfce2e2","block_type":"box","text":"related securities and securities of issuers engaged in the real estate business, and the Fund may purchase and","page_number":47,"box":{"x":116,"y":736,"width":753,"height":13}},{"id":"d42c797d-cc8d-49a4-915e-b384a56857c7","block_type":"box","text":"hold real estate as a result of the ownership of securities or other instruments.","page_number":47,"box":{"x":116,"y":751,"width":537,"height":13}},{"id":"e0f5dc54-d66e-4576-8ea7-51e412f865d4","block_type":"box","text":"5. Underwrite securities issued by others, except to the","page_number":47,"box":{"x":116,"y":773,"width":377,"height":13}},{"id":"93f95de3-c6dc-47af-998d-069349872d81","block_type":"box","text":"extent that the sale of portfolio securities by the Fund","page_number":47,"box":{"x":498,"y":773,"width":371,"height":13}},{"id":"fdac2a49-a48c-48ef-ba74-aa1a4973ac63","block_type":"box","text":"may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":47,"box":{"x":116,"y":788,"width":574,"height":13}},{"id":"45161380-8d0a-4b67-a353-16e69e6ea3f3","block_type":"box","text":"6. Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company Act.","page_number":47,"box":{"x":117,"y":810,"width":748,"height":13}},{"id":"d549f57b-ca8f-4c05-8e95-b71e799ea152","block_type":"box","text":"7. Make loans to the extent prohibited by the Investment Company Act.","page_number":47,"box":{"x":117,"y":832,"width":500,"height":13}},{"id":"d6ba7f3d-7365-4ed0-b46a-af81796eb5e2","block_type":"box","text":"8. Make any investment inconsistent with the Fund’s classification as a diversified company under the","page_number":47,"box":{"x":117,"y":854,"width":704,"height":13}},{"id":"f04661d6-60b1-4663-b36b-3a6c5d465432","block_type":"box","text":"Investment Company Act.","page_number":47,"box":{"x":116,"y":870,"width":181,"height":12}},{"id":"34da4032-3bbe-4405-a0f0-8c3d647961ff","block_type":"box","text":"I-22","page_number":47,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"73f64b9f-e65b-4324-900c-3df798434971","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":47,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c2708951-0844-44cf-9072-745e4eb59b51","block_type":"box","text":"Notations Regarding each of BlackRock 60/40 Target Allocation ETF V.I. Fund’s, BlackRock","page_number":48,"box":{"x":115,"y":79,"width":687,"height":13}},{"id":"206c08ef-3c50-4f5e-942b-c2d9f2506674","block_type":"box","text":"International Index V.I. Fund’s and BlackRock Small Cap Index V.I. Fund’s Fundamental Investment","page_number":48,"box":{"x":116,"y":94,"width":752,"height":13}},{"id":"8b23c844-3cee-49f0-99ff-e39f58202380","block_type":"box","text":"Restrictions","page_number":48,"box":{"x":116,"y":110,"width":86,"height":10}},{"id":"4ad276c1-a1d4-4c5f-a393-5ecff5b93c2a","block_type":"box","text":"The following notations are not considered to be part of a Fund’s fundamental investment restrictions and are","page_number":48,"box":{"x":116,"y":135,"width":763,"height":13}},{"id":"89f2b95e-c282-4ac6-be94-b68e4150da38","block_type":"box","text":"subject to change without shareholder approval.","page_number":48,"box":{"x":116,"y":150,"width":334,"height":13}},{"id":"f8e7cbc2-a12c-4b6c-a492-c9fd2a30db7e","block_type":"box","text":"With respect to the fundamental policy relating to concentration set forth in (1) above, the Investment","page_number":48,"box":{"x":116,"y":173,"width":724,"height":13}},{"id":"fed7f372-2b69-4678-936b-d6a0e986179b","block_type":"box","text":"Company Act does not define what constitutes “concentration” in an industry. The Commission staff has","page_number":48,"box":{"x":117,"y":188,"width":749,"height":13}},{"id":"b4fb6658-81ef-489d-9f10-9e1e6e0b2182","block_type":"box","text":"taken the position that investment of 25% or more of a fund’s total assets in one or more issuers","page_number":48,"box":{"x":116,"y":204,"width":686,"height":13}},{"id":"0430541e-6378-4b78-8a3a-f163efdc1603","block_type":"box","text":"conducting their principal activities in the same industry or group of industries constitutes concentration. It","page_number":48,"box":{"x":116,"y":219,"width":760,"height":13}},{"id":"68942ee3-b388-41e2-9276-156effaf351e","block_type":"box","text":"is possible that interpretations of concentration could change in the future. The policy in (1) above will be","page_number":48,"box":{"x":116,"y":235,"width":751,"height":13}},{"id":"5c30628d-cf94-49d3-8f4c-1640f9a226fe","block_type":"box","text":"interpreted to refer to concentration as that term may be interpreted from time to time. The policy also will","page_number":48,"box":{"x":116,"y":250,"width":761,"height":13}},{"id":"33461e41-21d0-4bb8-b862-8a64ab6aa087","block_type":"box","text":"be interpreted to permit investment without limit in th","page_number":48,"box":{"x":116,"y":266,"width":386,"height":13}},{"id":"04e17096-3048-47e4-be93-df476d15ac78","block_type":"box","text":"e following: securities of the U.S. government and its","page_number":48,"box":{"x":502,"y":266,"width":374,"height":13}},{"id":"13a126fc-3e78-4307-a01c-73fd3c24a8a9","block_type":"box","text":"agencies or instrumentalities; securities of state, territory, possession or municipal governments and their","page_number":48,"box":{"x":116,"y":281,"width":742,"height":13}},{"id":"d5334764-1ef7-4225-a140-3761534de4e0","block_type":"box","text":"authorities, agencies, instrumentalities or political subdivisions; and repurchase agreements collateralized by","page_number":48,"box":{"x":116,"y":297,"width":766,"height":13}},{"id":"921e0e4a-deb2-4c27-8b7b-5456881d4c16","block_type":"box","text":"any such obligations. Accordingly, issuers of the foregoing securities will not be considered to be members","page_number":48,"box":{"x":116,"y":312,"width":753,"height":13}},{"id":"51b46611-5eff-4ce3-8a58-1d4bc7df7777","block_type":"box","text":"of any industry. There also will be no limit on investment in issuers domiciled in a single jurisdiction or","page_number":48,"box":{"x":116,"y":328,"width":732,"height":13}},{"id":"073d3a5a-4032-4c04-a951-673a4b029f90","block_type":"box","text":"country. Finance companies will be considered to be in the industries of their parents if their activities are","page_number":48,"box":{"x":116,"y":343,"width":748,"height":13}},{"id":"140c6745-dea1-4bb5-b2c8-6678154584d7","block_type":"box","text":"primarily related to financing the activities of the parents. Each foreign government will be considered to be","page_number":48,"box":{"x":116,"y":359,"width":764,"height":13}},{"id":"ae865a7c-444b-48b9-a326-f550d7177084","block_type":"box","text":"a member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently","page_number":48,"box":{"x":116,"y":374,"width":732,"height":13}},{"id":"6d36d9be-9c8f-4e4e-ae3a-923ba06734f7","block_type":"box","text":"utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":48,"box":{"x":116,"y":390,"width":749,"height":13}},{"id":"9b4bdb82-4034-4ffb-ba92-efabd3cc6359","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted","page_number":48,"box":{"x":116,"y":405,"width":766,"height":13}},{"id":"8569f228-3880-413f-a794-f0a2da6a32f1","block_type":"box","text":"to give broad authority to the Fund as to how to classify issuers within or among industries. With respect to","page_number":48,"box":{"x":116,"y":421,"width":766,"height":13}},{"id":"18fb1de8-15ba-4e75-837e-cabb5a361ef9","block_type":"box","text":"BlackRock 60/40 Target Allocation ETF V.I. Fund, the Fund may invest in underlying funds that may","page_number":48,"box":{"x":116,"y":436,"width":723,"height":13}},{"id":"b120d0a2-5ed7-4ebc-9da6-e58bca61aa7a","block_type":"box","text":"concentrate their assets in one or more industries. BlackRock 60/40 Target Allocation ETF V.I. Fund will","page_number":48,"box":{"x":116,"y":452,"width":747,"height":13}},{"id":"51978a3a-01e0-4d1c-a9a0-ca1fbc614042","block_type":"box","text":"consider the concentration of the underlying funds in determining compliance with the Fund’s","page_number":48,"box":{"x":116,"y":467,"width":666,"height":13}},{"id":"e4dc2934-2ff8-4901-84bc-38754dd0a9cf","block_type":"box","text":"concentration policy.","page_number":48,"box":{"x":116,"y":483,"width":149,"height":13}},{"id":"19238e86-f5b4-4320-9adb-01c4b39ba13a","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set forth in (2) above, the Investment","page_number":48,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"1f797a7c-11c5-400f-99ef-225ca439e41f","block_type":"box","text":"Company Act permits the Fund to borrow money in amounts of up to one third of the Fund’s total assets","page_number":48,"box":{"x":117,"y":521,"width":730,"height":13}},{"id":"2951306b-fae7-45a0-b3c5-47ae028e52f2","block_type":"box","text":"from banks for any purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders","page_number":48,"box":{"x":116,"y":537,"width":749,"height":12}},{"id":"1bd054d2-1276-496e-87c9-d54295889169","block_type":"box","text":"for temporary purposes. (The Fund’s total assets include the amounts being borrowed.) To limit the risks","page_number":48,"box":{"x":116,"y":552,"width":728,"height":13}},{"id":"71294172-b3e9-431b-af39-aec1316e57d1","block_type":"box","text":"attendant to borrowing, the Investment Company Act requires the Fund to maintain at all times an “asset","page_number":48,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"811e7278-380d-4f21-9f83-8acfd851bb20","block_type":"box","text":"coverage” of at least 300% of the amount of its borrowings. Asset coverage means the ratio that the value of","page_number":48,"box":{"x":116,"y":583,"width":757,"height":13}},{"id":"8e7d770f-9199-4908-bd6a-b206808bb959","block_type":"box","text":"the Fund’s total assets (including amounts borrowed), m","page_number":48,"box":{"x":116,"y":599,"width":391,"height":12}},{"id":"c1e878a1-b9d3-4374-85e3-0329bd752035","block_type":"box","text":"inus liabilities other than borrowings, bears to the","page_number":48,"box":{"x":508,"y":599,"width":345,"height":12}},{"id":"2626a910-fb4d-4082-bfb4-e48381364796","block_type":"box","text":"aggregate amount of all borrowings. Borrowing money to increase portfolio holdings is known as","page_number":48,"box":{"x":116,"y":614,"width":678,"height":13}},{"id":"e82e4816-12c8-462a-80e3-738f3e8d4c8b","block_type":"box","text":"“leveraging.” Certain trading practices and investments, such as reverse repurchase agreements, may be","page_number":48,"box":{"x":117,"y":630,"width":716,"height":12}},{"id":"66d7eba6-167f-4769-a4a6-68788c7d2141","block_type":"box","text":"considered to be borrowings or involve leverage and thus are subject to the Investment Company Act","page_number":48,"box":{"x":116,"y":645,"width":702,"height":13}},{"id":"e3e6c64c-69eb-49a3-9d0a-73c346641053","block_type":"box","text":"restrictions. In accordance with Rule 18f-4 under the Investment Company Act, when the Fund engages in","page_number":48,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"b0c86fa5-fa0e-41c5-960b-3d97d3554d2b","block_type":"box","text":"reverse repurchase agreements and similar financing tr","page_number":48,"box":{"x":116,"y":676,"width":377,"height":13}},{"id":"7f4b05ff-ce51-4432-bd58-a49430fae897","block_type":"box","text":"ansactions, the Fund may either (i) maintain asset","page_number":48,"box":{"x":493,"y":676,"width":344,"height":13}},{"id":"68ef7af3-5afa-485e-91e2-e90ee3bc7def","block_type":"box","text":"coverage of at least 300% with respect to such transactions and any other borrowings in the aggregate, or (ii)","page_number":48,"box":{"x":116,"y":692,"width":758,"height":12}},{"id":"d1c70a7c-e217-45dd-8857-256bf8dbec72","block_type":"box","text":"treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to such","page_number":48,"box":{"x":116,"y":707,"width":703,"height":13}},{"id":"a7b2a422-59da-4a3c-9ac6-2d9d0486d9de","block_type":"box","text":"transactions. Short-term credits necessary for the settlement of securities transactions and arrangements with","page_number":48,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"45d45a51-9efe-41d7-b3cb-d6fc101f666f","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and","page_number":48,"box":{"x":116,"y":738,"width":687,"height":13}},{"id":"73fb7c24-fdfc-4973-81bd-c671d0c9275a","block_type":"box","text":"investments that may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":48,"box":{"x":116,"y":754,"width":747,"height":12}},{"id":"11a9fe75-00bb-49f3-a6f9-0e5936ac074b","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set forth in (5) above, the Investment","page_number":48,"box":{"x":116,"y":776,"width":702,"height":13}},{"id":"0b1b08ec-4826-4d4b-9ade-77279ff70e15","block_type":"box","text":"Company Act does not prohibit the Fund from engaging in the underwriting business or from underwriting","page_number":48,"box":{"x":117,"y":792,"width":744,"height":13}},{"id":"967b8ab4-8706-480b-b93f-e497a25c48b4","block_type":"box","text":"the securities of other issuers; in fact, in the case of diversified funds, the Investment Company Act permits the","page_number":48,"box":{"x":116,"y":807,"width":763,"height":13}},{"id":"18e64259-9cd8-4a76-95a2-b134155e9802","block_type":"box","text":"Fund to have underwriting commitments of up to 25% of its assets under certain circumstances. Those","page_number":48,"box":{"x":116,"y":823,"width":715,"height":13}},{"id":"f9b772bf-2250-4716-83be-fa04d61e820b","block_type":"box","text":"circumstances currently are that the amount of the Fund’s underwriting commitments, when added to the","page_number":48,"box":{"x":116,"y":838,"width":732,"height":13}},{"id":"69ba0d4f-95eb-4d09-8386-3802cafb7452","block_type":"box","text":"value of the Fund’s investments in issuers where the Fund owns more than 10% of the outstanding voting","page_number":48,"box":{"x":116,"y":854,"width":734,"height":13}},{"id":"9ababada-6f83-468d-bdd0-c4970e2b5320","block_type":"box","text":"securities of those issuers, cannot exceed the 25% cap. A fund engaging in transactions involving the","page_number":48,"box":{"x":116,"y":869,"width":697,"height":13}},{"id":"b7f2a9be-adba-44f0-8098-1e82c654735a","block_type":"box","text":"I-23","page_number":48,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"ea40415f-3252-4ff7-8209-480211775553","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":48,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d05a2d8c-5193-43b9-96c9-97195a5ba10e","block_type":"box","text":"acquisition or disposition of portfolio securities may be considered to be an underwriter under the Securities","page_number":49,"box":{"x":116,"y":79,"width":748,"height":13}},{"id":"72acc7e6-0c77-4d5c-a4c8-a12b86a9ed30","block_type":"box","text":"Act. Although it is not believed that the application of the Securities Act provisions described above would","page_number":49,"box":{"x":116,"y":94,"width":738,"height":13}},{"id":"f4b20e00-0a28-4ddb-8cb8-3584ab502ccb","block_type":"box","text":"cause the Fund to be engaged in the business of underwriting, the policy in (5) above will be interpreted not to","page_number":49,"box":{"x":116,"y":110,"width":764,"height":13}},{"id":"6e002d46-aa8c-4b72-b4e4-9e9ad1168078","block_type":"box","text":"prevent the Fund from engaging in transactions involving the acquisition or disposition of portfolio securities,","page_number":49,"box":{"x":116,"y":125,"width":759,"height":13}},{"id":"12089179-7366-48b5-b166-e3fddb83f647","block_type":"box","text":"regardless of whether the Fund may be considered to be an underwriter under the Securities Act or is","page_number":49,"box":{"x":116,"y":141,"width":698,"height":13}},{"id":"4e3821a6-7769-49ef-b89e-867508d4cef2","block_type":"box","text":"otherwise engaged in the underwriting business to the extent permitted by applicable law.","page_number":49,"box":{"x":116,"y":156,"width":621,"height":13}},{"id":"d061de82-0914-49d0-a16f-726591a1ea90","block_type":"box","text":"With respect to the fundamental policy relating to lending set forth in (7) above, the Investment Company Act","page_number":49,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"1a5e51ee-7d09-4cb1-9238-beaafd49563d","block_type":"box","text":"does not prohibit the Fund from making loans (includi","page_number":49,"box":{"x":116,"y":195,"width":379,"height":13}},{"id":"6c75caba-5356-4ea0-902c-d5588dc64de7","block_type":"box","text":"ng lending its securities); however, Commission staff","page_number":49,"box":{"x":495,"y":195,"width":365,"height":13}},{"id":"b3ff0e97-2b9f-4020-b782-5b23954fb4dd","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including","page_number":49,"box":{"x":116,"y":211,"width":720,"height":12}},{"id":"576a7020-d5ca-44ef-b4ae-36bd5e08719a","block_type":"box","text":"lending its securities), except through the purchase of debt obligations or the use of repurchase agreements. In","page_number":49,"box":{"x":116,"y":226,"width":760,"height":13}},{"id":"953b3764-3e48-4610-91a6-a73328469c74","block_type":"box","text":"addition, collateral arrangements with respect to options, fo","page_number":49,"box":{"x":116,"y":242,"width":408,"height":12}},{"id":"98798e21-ebb4-48e9-a670-4fd1d92955af","block_type":"box","text":"forward currency and futures transactions and other","page_number":49,"box":{"x":524,"y":242,"width":357,"height":12}},{"id":"7ec58f14-b7bd-4866-87f7-7d3484c5b2af","block_type":"box","text":"derivative instruments (as applicable), as well as delays in the settlement of securities transactions, will not be","page_number":49,"box":{"x":116,"y":257,"width":756,"height":13}},{"id":"38d51d24-2c13-4478-8b66-b595cd62e1bf","block_type":"box","text":"considered loans.","page_number":49,"box":{"x":116,"y":273,"width":119,"height":10}},{"id":"dad90088-3661-40ea-baa4-12cd34df47c4","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":49,"box":{"x":116,"y":296,"width":757,"height":13}},{"id":"f95e9ea8-d8d5-4ca4-9de7-9c879f4e1c75","block_type":"box","text":"Fund may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":49,"box":{"x":116,"y":311,"width":725,"height":13}},{"id":"5161d10a-37f0-45e0-88f7-492dd4226875","block_type":"box","text":"government, its agencies or instrumentalities and (ii)","page_number":49,"box":{"x":116,"y":327,"width":361,"height":13}},{"id":"b9110d4f-c006-4a8f-ab99-7240e5c70a75","block_type":"box","text":"securities of other investment companies) if, with respect","page_number":49,"box":{"x":483,"y":327,"width":392,"height":13}},{"id":"a6fe45a4-5a23-4ea0-8749-3b0b08ad30e7","block_type":"box","text":"to 75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that","page_number":49,"box":{"x":116,"y":342,"width":747,"height":13}},{"id":"02dfd1be-c149-4e63-87ce-ca83a37b2506","block_type":"box","text":"issuer or (b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With","page_number":49,"box":{"x":116,"y":358,"width":733,"height":13}},{"id":"3d293954-866b-46b9-ac20-fe2461f36305","block_type":"box","text":"respect to the remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer.","page_number":49,"box":{"x":116,"y":373,"width":751,"height":13}},{"id":"d01fc9cc-fa19-4d35-9ecc-c17d6d6c3ed5","block_type":"box","text":"Under the Investment Company Act, the Fund cannot change its classification from diversified to","page_number":49,"box":{"x":116,"y":389,"width":672,"height":13}},{"id":"e1d04d24-6358-4f93-9ae7-357816d898a0","block_type":"box","text":"non-diversified without shareholder approval (including, with respect to BlackRock International Index V.I.","page_number":49,"box":{"x":116,"y":404,"width":748,"height":13}},{"id":"9f32f36f-0fb9-4911-ad66-8aec45e3f65c","block_type":"box","text":"Fund and BlackRock Small Cap Index V.I. Fund, class approval by preferred shareholders, if any).","page_number":49,"box":{"x":116,"y":420,"width":682,"height":13}},{"id":"92a60dcc-78ef-4b5d-a9c8-ce39f5e14e6c","block_type":"box","text":"Under its non-fundamental investment restrictions, w","page_number":49,"box":{"x":116,"y":443,"width":370,"height":12}},{"id":"06440db2-3f0b-45f7-9c97-46c2d6367314","block_type":"box","text":"hich may be changed by the Board without shareholder","page_number":49,"box":{"x":486,"y":443,"width":385,"height":13}},{"id":"5f63cf0e-4731-4576-8165-dba3dc405a60","block_type":"box","text":"approval, each of BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock International Index V.I.","page_number":49,"box":{"x":116,"y":459,"width":729,"height":12}},{"id":"57574a00-ce13-4d18-a048-7ce7c9b7dad0","block_type":"box","text":"Fund and BlackRock Small Cap Index V.I. Fund may not:","page_number":49,"box":{"x":116,"y":474,"width":402,"height":13}},{"id":"fa3b8395-501c-4f9d-b669-1795f42e900d","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment Company","page_number":49,"box":{"x":116,"y":497,"width":762,"height":13}},{"id":"950e8dc1-9379-4c20-bd61-ce557bca4418","block_type":"box","text":"Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end investment","page_number":49,"box":{"x":116,"y":513,"width":738,"height":13}},{"id":"04a98954-cae9-47ce-bc0a-f25dab5d3bfc","block_type":"box","text":"company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":49,"box":{"x":116,"y":528,"width":716,"height":13}},{"id":"3b03ecc0-e399-49af-8fc3-b1e3ad3d078d","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":49,"box":{"x":116,"y":544,"width":767,"height":13}},{"id":"08b0d090-85a7-4116-9190-8038b3cea7fe","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":49,"box":{"x":116,"y":559,"width":728,"height":13}},{"id":"404d0f2e-ae11-4806-862e-e8cee4ec595b","block_type":"box","text":"b. Make short sales of securities or maintain a short position, except to the extent permitted by the Fund’s","page_number":49,"box":{"x":116,"y":583,"width":735,"height":12}},{"id":"3e7e4df0-0e93-427b-b1dd-4ac831293013","block_type":"box","text":"Prospectus and SAI, as amended from time to time, and applicable law.","page_number":49,"box":{"x":116,"y":598,"width":494,"height":13}},{"id":"fefd681f-4b4e-4297-85fb-3d0257d32b2f","block_type":"box","text":"Unless otherwise indicated, all limitations under t","page_number":49,"box":{"x":116,"y":621,"width":342,"height":13}},{"id":"8e9b31a2-ac0f-4f4c-9142-f47a2faf2ad6","block_type":"box","text":"he Fund’s fundamental or non-fundamental investment","page_number":49,"box":{"x":459,"y":621,"width":383,"height":10}},{"id":"f8f5d0b0-e9af-4295-87dc-0bf36329d2a1","block_type":"box","text":"restrictions apply only at the time that a transaction is undertaken. Any change in the percentage of the Fund’s","page_number":49,"box":{"x":116,"y":637,"width":765,"height":13}},{"id":"bc3ba33a-f360-4aa0-a3e5-27ed05b49986","block_type":"box","text":"assets invested in certain securities or other instruments resulting from market fluctuations or other changes in","page_number":49,"box":{"x":116,"y":652,"width":764,"height":13}},{"id":"f96fb3a0-3396-4f2a-86bc-4122cec6039c","block_type":"box","text":"the Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it","page_number":49,"box":{"x":116,"y":668,"width":766,"height":13}},{"id":"9503747c-b5c5-459d-a5bb-a6e6b4a44b65","block_type":"box","text":"is practicable to sell or close out the investment without undue market or tax consequences.","page_number":49,"box":{"x":116,"y":683,"width":635,"height":13}},{"id":"c0a71d29-852f-4bda-a6c2-28677eca67e4","block_type":"box","text":"III. Information on Directors and Officers","page_number":49,"box":{"x":116,"y":712,"width":344,"height":10}},{"id":"a9ef600b-a833-40c9-820a-99323977235f","block_type":"box","text":"The Board consists of thirteen individuals (each, a “","page_number":49,"box":{"x":116,"y":738,"width":358,"height":12}},{"id":"203f8da1-b7fc-4fa8-839d-ed2d2414d77d","block_type":"box","text":"Director”), eleven of whom are not “interested persons”","page_number":49,"box":{"x":476,"y":738,"width":390,"height":12}},{"id":"c63116c3-7478-4518-93ce-fdeae297ec12","block_type":"box","text":"of the Company as defined in the Investment Company Act (the “Independent Directors”). The registered","page_number":49,"box":{"x":116,"y":753,"width":733,"height":13}},{"id":"517a1ea1-79d1-4817-b142-5cd3276beacf","block_type":"box","text":"investment companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized","page_number":49,"box":{"x":116,"y":769,"width":763,"height":13}},{"id":"1950f82d-7f2b-431f-aacc-c301bd1b7ee1","block_type":"box","text":"into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex","page_number":49,"box":{"x":116,"y":784,"width":748,"height":13}},{"id":"cf5a1996-8f72-4088-bc94-6e7442477229","block_type":"box","text":"(each, a “BlackRock Fund Complex”). The Company i","page_number":49,"box":{"x":117,"y":800,"width":381,"height":13}},{"id":"291ca257-a57b-47d9-8147-9eecab1b7cb8","block_type":"box","text":"s included in the BlackRock Fund Complex referred to","page_number":49,"box":{"x":499,"y":800,"width":379,"height":13}},{"id":"51867da2-132c-4efb-bc45-54f3c8847862","block_type":"box","text":"as the BlackRock Multi-Asset Complex. The Directors also oversee as board members the operations of the","page_number":49,"box":{"x":116,"y":815,"width":746,"height":13}},{"id":"55e469d5-4d94-49ef-a4d3-40946fde2c72","block_type":"box","text":"other open-end registered investment companies included in the BlackRock Multi-Asset Complex.","page_number":49,"box":{"x":116,"y":831,"width":679,"height":13}},{"id":"2bbc521d-5c92-478c-a7ac-8b62524a9351","block_type":"box","text":"The Board has overall responsibility for the oversight of the Company and each Fund. The Chair of the Board","page_number":49,"box":{"x":116,"y":854,"width":763,"height":13}},{"id":"45daf167-e41b-413f-a021-1654213aa06b","block_type":"box","text":"is an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent","page_number":49,"box":{"x":116,"y":869,"width":757,"height":13}},{"id":"6e75773d-1f2e-42c6-80b3-7eef3e13145c","block_type":"box","text":"I-24","page_number":49,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"874c9e94-339b-42ee-bee9-8a75b9c28c19","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":49,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d70fffd2-1f4c-41c0-af25-d898a32dfe45","block_type":"box","text":"Director. The Board has five standing Committees: an Audit Committee, a Governance and Nominating","page_number":50,"box":{"x":116,"y":79,"width":724,"height":13}},{"id":"1c2108d2-35cf-4615-8ef2-db7dde880747","block_type":"box","text":"Committee, a Compliance Committee, a Performance Oversight Committee and an Ad Hoc Topics","page_number":50,"box":{"x":117,"y":94,"width":688,"height":13}},{"id":"b9edbcae-e805-44a2-b7c5-3401adfebbc9","block_type":"box","text":"Committee. The role of the Chair of the Board is to preside at all meetings of the Board and to act as a liaison","page_number":50,"box":{"x":117,"y":110,"width":760,"height":13}},{"id":"5b4622cc-a778-43ce-be20-7dedd6075ffd","block_type":"box","text":"with service providers, officers, attorneys and other Directors generally between meetings. The Chair of each","page_number":50,"box":{"x":116,"y":125,"width":753,"height":13}},{"id":"e8e26028-714f-4089-ae39-6c5654894384","block_type":"box","text":"Committee performs a similar role with respect to the Committee. The Chair of the Board or the Chair of a","page_number":50,"box":{"x":117,"y":141,"width":744,"height":13}},{"id":"09209d17-16c1-478e-ac3c-2410b505e76e","block_type":"box","text":"Committee may also perform such other functions as may be delegated by the Board or the Committee from","page_number":50,"box":{"x":117,"y":156,"width":752,"height":13}},{"id":"da1ca530-7134-4da8-8165-f2176e72052d","block_type":"box","text":"time to time. The Independent Directors meet regularly outside the presence of Fund management, in","page_number":50,"box":{"x":116,"y":172,"width":701,"height":13}},{"id":"cba10b6e-399d-4c11-b464-4efff1d24a57","block_type":"box","text":"executive session or with other service providers to each Fund. The Board has regular meetings five times a","page_number":50,"box":{"x":116,"y":187,"width":740,"height":13}},{"id":"59b8ec8c-e929-4aae-b568-708a8088b8ab","block_type":"box","text":"year, and may hold special meetings if required before its next regular meeting. Each Committee meets","page_number":50,"box":{"x":116,"y":203,"width":711,"height":13}},{"id":"3165cc18-7b90-41aa-9564-471110891798","block_type":"box","text":"regularly to conduct the oversight functions delegated to that Committee by the Board and reports its findings","page_number":50,"box":{"x":116,"y":218,"width":762,"height":13}},{"id":"a8222651-dbcd-46ed-9c82-5f2a8283ca83","block_type":"box","text":"to the Board. The Board and each standing Committee conduct annual assessments of their oversight function","page_number":50,"box":{"x":116,"y":234,"width":764,"height":13}},{"id":"e4964699-109d-47a0-9c45-05f6fdad1fca","block_type":"box","text":"and structure. The Board has determined that the Board’s","page_number":50,"box":{"x":116,"y":249,"width":399,"height":10}},{"id":"bed6c7e7-f3df-4943-839a-5fbadd5119bb","block_type":"box","text":"leadership structure is appropriate because it allows","page_number":50,"box":{"x":520,"y":249,"width":358,"height":13}},{"id":"30fc6f30-ecc1-4dac-a30e-055c6c40ba4e","block_type":"box","text":"the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":50,"box":{"x":116,"y":265,"width":748,"height":13}},{"id":"c5e107e2-b99f-44ff-8f06-5f90ba348cdc","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":50,"box":{"x":117,"y":280,"width":425,"height":13}},{"id":"2a02210f-13c7-4dbd-849f-68da3375d569","block_type":"box","text":"The Board has engaged the Manager to manage each Fund on a day-to-day basis. The Board is responsible for","page_number":50,"box":{"x":116,"y":304,"width":757,"height":12}},{"id":"9922e733-4a31-4448-b003-28b6b99bf9b6","block_type":"box","text":"overseeing the Manager, other service providers, the operations of each Fund and associated risks in accordance","page_number":50,"box":{"x":116,"y":319,"width":767,"height":13}},{"id":"e2edf558-95ed-4b62-a341-58d1042f5f51","block_type":"box","text":"with the provisions of the Investment Company Act, state law, other applicable laws, the Company’s charter,","page_number":50,"box":{"x":116,"y":335,"width":748,"height":12}},{"id":"60d5a6b3-31d2-4bc1-af92-666ee2b8cd26","block_type":"box","text":"and each Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, each Fund’s","page_number":50,"box":{"x":116,"y":350,"width":725,"height":13}},{"id":"1cbe6121-4c39-4528-bed2-605e727cbf58","block_type":"box","text":"performance, operations and investment strategies and techniques. The Board also conducts reviews of the","page_number":50,"box":{"x":116,"y":366,"width":729,"height":12}},{"id":"db649d52-6b25-4fdf-bbd6-8c113bfd2db5","block_type":"box","text":"Manager and its role in running the operations of each Fund.","page_number":50,"box":{"x":116,"y":381,"width":418,"height":13}},{"id":"798096f8-2907-44a4-a721-1c4247be81b8","block_type":"box","text":"Day-to-day risk management with respect to each Fund is the responsibility of the Manager or of sub-advisers","page_number":50,"box":{"x":116,"y":404,"width":763,"height":13}},{"id":"c4b02a7a-14fa-4827-b14b-b2a0eb3f19b5","block_type":"box","text":"or other service providers (depending on the nature of the risk), subject to the supervision of the Manager.","page_number":50,"box":{"x":116,"y":420,"width":736,"height":13}},{"id":"f7a317d9-57af-4fb6-a205-51c958634298","block_type":"box","text":"Each Fund is subject to a number of risks, including investment, compliance, operational and valuation risks,","page_number":50,"box":{"x":116,"y":435,"width":756,"height":13}},{"id":"2b77ee5e-9416-4f50-a0da-c9c93a6a1b9e","block_type":"box","text":"among others. While there are a number of risk management functions performed by the Manager and the","page_number":50,"box":{"x":116,"y":451,"width":740,"height":13}},{"id":"186ca71b-8fa8-4c29-abcb-b7f9fe9d7de2","block_type":"box","text":"sub-advisers or other service providers, as applicable, it is not possible to eliminate all of the risks applicable","page_number":50,"box":{"x":116,"y":466,"width":748,"height":13}},{"id":"03f9cbe9-bb2c-4ada-b93a-c2fae045ba39","block_type":"box","text":"to the Funds. Risk oversight forms part of the Board’s general oversight of each Fund and is addressed as part","page_number":50,"box":{"x":116,"y":482,"width":761,"height":13}},{"id":"246f63f1-d44d-4f0d-bcd7-2a432e5672bf","block_type":"box","text":"of various Board and Committee activities. The Board, directly or through a Committee, also reviews reports","page_number":50,"box":{"x":116,"y":497,"width":756,"height":13}},{"id":"1297f910-334a-46bb-916e-3c5c7bd6f456","block_type":"box","text":"from, among others, management, the independent registered public accounting firm for each Fund,","page_number":50,"box":{"x":116,"y":513,"width":693,"height":13}},{"id":"cc36341c-5f53-42aa-8681-0c5032f9e20c","block_type":"box","text":"sub-advisers and internal auditors for the investment adviser or its affiliates, as appropriate, regarding risks","page_number":50,"box":{"x":116,"y":528,"width":741,"height":13}},{"id":"654ce581-54f4-4e97-b6b8-173d2b82a057","block_type":"box","text":"faced by each Fund and management’s or the service provider’s risk functions. The Committee system","page_number":50,"box":{"x":116,"y":544,"width":706,"height":13}},{"id":"124988fc-0d77-4c8c-b164-ddf6768cbf74","block_type":"box","text":"facilitates the timely and efficient consideration of matters by the Directors, and facilitates effective oversight","page_number":50,"box":{"x":116,"y":559,"width":752,"height":13}},{"id":"4c83b4a9-2290-4bbf-b689-b75f623bf826","block_type":"box","text":"of compliance with legal and regulatory requirements and of each Fund’s activities and associated risks. The","page_number":50,"box":{"x":116,"y":575,"width":749,"height":13}},{"id":"6b2437f4-0219-465a-8e5c-1f00ba5ad7f2","block_type":"box","text":"Board has appointed a Chief Compliance Officer, who oversees the implementation and testing of the","page_number":50,"box":{"x":116,"y":590,"width":706,"height":13}},{"id":"fec5c5d4-9e6a-47ca-bed6-46234b90fe9b","block_type":"box","text":"Company’s compliance program and reports to the Board regarding compliance matters for the Funds and","page_number":50,"box":{"x":117,"y":606,"width":739,"height":13}},{"id":"2128e523-ee02-4f13-b086-4074394da907","block_type":"box","text":"their service providers. The Independent Directors have engaged independent legal counsel to assist them in","page_number":50,"box":{"x":116,"y":621,"width":744,"height":13}},{"id":"5db28fb2-1cfd-404d-b3dd-6facc4753217","block_type":"box","text":"performing their oversight responsibilities.","page_number":50,"box":{"x":116,"y":637,"width":292,"height":13}},{"id":"c5f47cb7-0115-49a4-b65f-72f92ebf1779","block_type":"box","text":"Audit Committee.","page_number":50,"box":{"x":116,"y":660,"width":124,"height":10}},{"id":"80eb1c40-878b-4ea7-a153-de559d6022e2","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer","page_number":50,"box":{"x":246,"y":660,"width":588,"height":13}},{"id":"0f2d9b97-7f60-4d40-9909-79bba2132bca","block_type":"box","text":"(Chair), Neil A. Cotty, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent","page_number":50,"box":{"x":117,"y":676,"width":747,"height":12}},{"id":"dc753c9f-cad6-4fd2-b4bd-a3c328c5d70a","block_type":"box","text":"Directors. The principal responsibilities of the Audit Committee are to approve, and recommend to the full","page_number":50,"box":{"x":116,"y":691,"width":741,"height":13}},{"id":"03c68615-1746-4304-8503-cad0c766c7c0","block_type":"box","text":"Board for approval, the selection, retention, termination and compensation of each Fund’s independent","page_number":50,"box":{"x":116,"y":707,"width":716,"height":12}},{"id":"8b4717a2-0da9-499f-b15f-2436465270cd","block_type":"box","text":"registered public accounting firm (the “Independent Registered Public Accounting Firm”) and to oversee the","page_number":50,"box":{"x":116,"y":722,"width":749,"height":13}},{"id":"13ceaec0-82c5-4f4d-bf0b-c646b228e081","block_type":"box","text":"Independent Registered Public Accounting Firm’s w","page_number":50,"box":{"x":116,"y":738,"width":360,"height":12}},{"id":"0350f4e7-0282-4a88-8197-195314747c72","block_type":"box","text":"ork. The Audit Committee’s responsibilities include,","page_number":50,"box":{"x":476,"y":738,"width":361,"height":12}},{"id":"1e2a22ac-8520-4c28-9133-43553a677ed4","block_type":"box","text":"without limitation, to (1) evaluate the qualifications and independence of the Independent Registered Public","page_number":50,"box":{"x":116,"y":753,"width":747,"height":13}},{"id":"4d8da2bb-31f8-4192-8199-6b5534d3ac9a","block_type":"box","text":"Accounting Firm; (2) approve all audit engagement terms and fees for each Fund; (3) review the conduct and","page_number":50,"box":{"x":116,"y":769,"width":754,"height":13}},{"id":"23a2840c-8537-4f0d-a580-06aafe18b404","block_type":"box","text":"results of each independent audit of each Fund’s annual financial statements; (4) review any issues raised by","page_number":50,"box":{"x":116,"y":784,"width":746,"height":13}},{"id":"04429269-d79a-4997-90a1-6906e78176e2","block_type":"box","text":"the Independent Registered Public Accounting Firm or Fund management regarding the accounting or","page_number":50,"box":{"x":116,"y":800,"width":708,"height":13}},{"id":"41a50d72-03e6-46ff-a659-dcc09533a718","block_type":"box","text":"financial reporting policies and practices of each Fund and the internal controls of each Fund and certain","page_number":50,"box":{"x":116,"y":815,"width":726,"height":13}},{"id":"39f9c565-d5a0-4e0e-903c-efd2dcfbb81a","block_type":"box","text":"service providers; (5) oversee the performance of each Fund’s Independent Registered Public Accounting Firm;","page_number":50,"box":{"x":116,"y":831,"width":763,"height":13}},{"id":"4faf0e57-54bc-47e9-82de-d66a6bae1a8d","block_type":"box","text":"(6) review and discuss with management and each Fund’s Independent Registered Public Accounting Firm the","page_number":50,"box":{"x":117,"y":846,"width":760,"height":13}},{"id":"87d07e10-856e-4fab-a425-f3d3cca8222b","block_type":"box","text":"performance and findings of each Fund’s internal auditors; (7) discuss with Fund management its policies","page_number":50,"box":{"x":116,"y":862,"width":730,"height":13}},{"id":"dedad6a2-14d6-477a-8293-1809259df832","block_type":"box","text":"I-25","page_number":50,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"2aecec63-140f-4ac6-88d8-3c0cb1ac73db","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":50,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ad677cfe-b0a5-4b86-abac-0e18c65d06e9","block_type":"box","text":"regarding risk assessment and risk management as such matters relate to each Fund’s financial reporting and","page_number":51,"box":{"x":116,"y":79,"width":752,"height":13}},{"id":"e56ec56a-558f-4075-b231-0052d0dced8b","block_type":"box","text":"controls; (8) resolve any disagreements between Fund management and the Independent Registered Public","page_number":51,"box":{"x":116,"y":94,"width":735,"height":13}},{"id":"0d2140be-7c2e-4926-960e-a28e08b84623","block_type":"box","text":"Accounting Firm regarding financial reporting; and (9) undertake such other duties and responsibilities as may","page_number":51,"box":{"x":116,"y":110,"width":766,"height":13}},{"id":"8babb2b4-a61a-43fb-9144-2c232d25557e","block_type":"box","text":"from time to time be delegated by the Board to the Audit Committee. The Board has adopted a written","page_number":51,"box":{"x":116,"y":125,"width":714,"height":13}},{"id":"02d9ebe3-f2ec-473f-b188-9aebbd645845","block_type":"box","text":"charter for the Audit Committee. During the fiscal year ended December 31, 2025, the Audit Committee met","page_number":51,"box":{"x":116,"y":141,"width":757,"height":13}},{"id":"d7b8cee2-ef82-4e93-854f-c1efa4dd0b82","block_type":"box","text":"four times.","page_number":51,"box":{"x":116,"y":156,"width":73,"height":10}},{"id":"0ffb0777-5ba9-4894-a8bc-018428239e44","block_type":"box","text":"Governance and Nominating Committee.","page_number":51,"box":{"x":117,"y":180,"width":288,"height":12}},{"id":"4dfed5ff-e5fd-4844-8911-70313de6fd00","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":51,"box":{"x":411,"y":180,"width":459,"height":12}},{"id":"c22fed98-d14d-4f84-b188-92461f2e3c49","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter,","page_number":51,"box":{"x":117,"y":195,"width":724,"height":13}},{"id":"4ac2a255-921a-42bc-8690-6d722c4dc3b8","block_type":"box","text":"Collette Chilton and Henry R. Keizer, all of whom are Independent Directors. The principal responsibilities of","page_number":51,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"b37e3b6e-758b-4de8-8e08-27cf5431dda6","block_type":"box","text":"the Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the","page_number":51,"box":{"x":116,"y":226,"width":742,"height":13}},{"id":"1b698a77-14a5-46d5-83ec-7b95e2a91953","block_type":"box","text":"Company and recommend Independent Director nominees fo","page_number":51,"box":{"x":117,"y":242,"width":425,"height":12}},{"id":"9d3ec6a5-1a41-4c91-92bd-07f44cd1f57e","block_type":"box","text":"r election by shareholders or appointment by the","page_number":51,"box":{"x":543,"y":242,"width":337,"height":12}},{"id":"52bbf684-0d42-4e18-acd9-973d686eba9a","block_type":"box","text":"Board; (2) advise the Board with respect to Board compos","page_number":51,"box":{"x":116,"y":257,"width":402,"height":13}},{"id":"feb991bc-ceec-4f41-bb8b-f4777cf1c824","block_type":"box","text":"ition, procedures and committees (other than the","page_number":51,"box":{"x":519,"y":257,"width":338,"height":13}},{"id":"30888252-6fd6-4d24-8077-08b7a3f0fa38","block_type":"box","text":"Audit Committee); (3) oversee periodic self-assessments of","page_number":51,"box":{"x":116,"y":273,"width":404,"height":12}},{"id":"f09c43ef-ece5-4e0f-bee3-3f476c66b3e7","block_type":"box","text":"the Board and committees of the Board (other than","page_number":51,"box":{"x":524,"y":273,"width":355,"height":12}},{"id":"46d397f4-6db1-462c-a8ce-784f88861a4a","block_type":"box","text":"the Audit Committee); (4) review and make recommendati","page_number":51,"box":{"x":116,"y":288,"width":407,"height":12}},{"id":"67a95159-48fd-4162-95d3-5a87c6c0d5e6","block_type":"box","text":"ons regarding Independent Director compensation;","page_number":51,"box":{"x":524,"y":288,"width":352,"height":13}},{"id":"7dc40a37-1363-471b-bc49-beac9887c7c4","block_type":"box","text":"(5) monitor corporate governance matters and develop appropriate recommendations to the Board; (6) act as","page_number":51,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"ab23eb3c-b6e4-4c41-9dfa-2e4063384783","block_type":"box","text":"the administrative committee with respect to Board","page_number":51,"box":{"x":116,"y":319,"width":356,"height":13}},{"id":"efd635a0-3d6b-4147-8677-bd2ae1a3c36a","block_type":"box","text":"policies and procedures, committee policies and","page_number":51,"box":{"x":476,"y":319,"width":331,"height":13}},{"id":"9f117add-9ecb-4449-8fc7-3c5bfdc1a5d7","block_type":"box","text":"procedures (other than the Audit Committee) and codes of ethics as they relate to Independent Directors; and","page_number":51,"box":{"x":116,"y":335,"width":759,"height":12}},{"id":"e8e9c047-2b51-4a30-a60d-f2f2a97a9371","block_type":"box","text":"(7) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":51,"box":{"x":117,"y":350,"width":760,"height":13}},{"id":"a13a5523-7e95-4d4c-8249-074f71587875","block_type":"box","text":"Governance Committee. The Governance Committee may","page_number":51,"box":{"x":117,"y":366,"width":404,"height":12}},{"id":"24370176-c16c-4f26-bad6-7931f22b6c50","block_type":"box","text":"consider nominations for Directors made by each","page_number":51,"box":{"x":526,"y":366,"width":342,"height":12}},{"id":"a478a06c-9f28-41e7-a61e-7c0a60dbc4f3","block_type":"box","text":"Fund’s shareholders as it deems appropriate. Under the Company’s Amended and Restated Bylaws","page_number":51,"box":{"x":116,"y":381,"width":685,"height":13}},{"id":"c141fad7-71c6-44f6-9728-c837dc61c2ec","block_type":"box","text":"(“Bylaws”), shareholders must follow certain procedures to nominate a person for election as a Director at a","page_number":51,"box":{"x":117,"y":397,"width":752,"height":12}},{"id":"3c2a4b4a-2eda-4393-9cf1-2448a1f329fd","block_type":"box","text":"shareholder meeting at which Directors are to be elected. Under these advance notice procedures, notice of the","page_number":51,"box":{"x":116,"y":412,"width":764,"height":13}},{"id":"7bcc54c4-00c2-4192-bbb2-3ad9b431d757","block_type":"box","text":"proposed nominee to the Secretary of the Company must be delivered to or mailed and received at the","page_number":51,"box":{"x":116,"y":428,"width":708,"height":12}},{"id":"64ae81bd-07dd-44a2-a33c-6952e3a2c061","block_type":"box","text":"principal executive offices of the Company not later than the close of business on the fifth day following the","page_number":51,"box":{"x":116,"y":443,"width":748,"height":13}},{"id":"61d63b5d-1c42-4c37-ab97-b1b0418f54a3","block_type":"box","text":"day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":51,"box":{"x":116,"y":459,"width":758,"height":12}},{"id":"517bde54-3ce5-4438-a144-5944feee6715","block_type":"box","text":"made, whichever first occurs. The Company’s Bylaws provide that notice of a proposed nomination must","page_number":51,"box":{"x":116,"y":474,"width":731,"height":13}},{"id":"f3b775a7-c9c3-4de3-a88c-f92e517d8d36","block_type":"box","text":"include certain information about the shareholder and the nominee, as well as certain other information,","page_number":51,"box":{"x":116,"y":490,"width":725,"height":12}},{"id":"6885548f-6246-4f53-9565-b9dab0debd0f","block_type":"box","text":"including a written consent of the proposed nominee to serve if elected. Reference is made to the Company’s","page_number":51,"box":{"x":116,"y":505,"width":751,"height":13}},{"id":"f28b5d3c-168c-4b98-81ee-4fd094fe1855","block_type":"box","text":"Bylaws for more details. The Board has adopted a written charter for the Governance Committee. During the","page_number":51,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"ef028b07-f0ae-4280-9c78-0f2a6af1aeae","block_type":"box","text":"fiscal year ended December 31, 2025, the Governance Committee met eleven times.","page_number":51,"box":{"x":116,"y":536,"width":579,"height":13}},{"id":"79818b6b-b071-48ef-b9cc-fa3f03fe6a87","block_type":"box","text":"Compliance Committee.","page_number":51,"box":{"x":117,"y":559,"width":167,"height":13}},{"id":"a376d33a-aecf-4f93-9647-09b916a8d61e","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are","page_number":51,"box":{"x":290,"y":559,"width":558,"height":13}},{"id":"33b19267-65e2-4a68-8ef2-33e767f18c24","block_type":"box","text":"Claire A. Walton (Chair), Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish,","page_number":51,"box":{"x":117,"y":575,"width":761,"height":13}},{"id":"93b35d90-6092-4c01-857a-b01da8849322","block_type":"box","text":"all of whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in","page_number":51,"box":{"x":116,"y":590,"width":710,"height":13}},{"id":"dc2a7c82-de7e-400a-a193-26255466eaaf","block_type":"box","text":"fulfilling its responsibility to oversee regulatory and fiduciary","page_number":51,"box":{"x":116,"y":606,"width":422,"height":13}},{"id":"238818d6-6420-404f-8c39-7beb3723aece","block_type":"box","text":"compliance matters involving the Company, the","page_number":51,"box":{"x":543,"y":606,"width":332,"height":13}},{"id":"5fc28e55-ac35-411d-80ff-ed1e0e5f96cb","block_type":"box","text":"fund-related activities of BlackRock and any sub-adviser and the Company’s third-party service providers.","page_number":51,"box":{"x":116,"y":621,"width":735,"height":13}},{"id":"578e109c-fcc1-4fa3-a9ce-59958be7bcea","block_type":"box","text":"The Compliance Committee’s responsibilities include, without limitation, to (1) oversee the compliance","page_number":51,"box":{"x":116,"y":637,"width":715,"height":13}},{"id":"138bd4f0-e6d7-457c-88f3-75516e622d39","block_type":"box","text":"policies and procedures of the Company and its service providers and recommend changes or additions to","page_number":51,"box":{"x":116,"y":652,"width":734,"height":13}},{"id":"fe6d6b79-bb72-4d23-bf2a-f338ed6b07b9","block_type":"box","text":"such policies and procedures; (2) review information on and, where appropriate, recommend policies","page_number":51,"box":{"x":116,"y":668,"width":700,"height":13}},{"id":"61e8e611-f869-472c-b1a4-19990fe3d3df","block_type":"box","text":"concerning the Company’s compliance with applicab","page_number":51,"box":{"x":116,"y":683,"width":368,"height":13}},{"id":"4e3d939b-2443-4044-afe4-e5a054c1a1ae","block_type":"box","text":"le law; (3) review reports from, oversee the annual","page_number":51,"box":{"x":484,"y":683,"width":349,"height":13}},{"id":"4b1ee020-d922-47df-8291-455e42da5c42","block_type":"box","text":"performance review of, and make certain recommendations and determinations regarding the Company’s","page_number":51,"box":{"x":116,"y":699,"width":732,"height":13}},{"id":"c57a4066-4027-40c3-88ad-28042f732594","block_type":"box","text":"Chief Compliance Officer (the “CCO”), including determining the amount and structure of the CCO’s","page_number":51,"box":{"x":117,"y":714,"width":712,"height":13}},{"id":"ad9bc664-744a-499b-9de8-6b97ca3b7df1","block_type":"box","text":"compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":51,"box":{"x":116,"y":730,"width":751,"height":13}},{"id":"6cae65cd-d072-4448-aa32-d7cd5a0ca853","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to","page_number":51,"box":{"x":116,"y":745,"width":766,"height":13}},{"id":"3f0457b9-7786-40e1-a12c-592950d8f167","block_type":"box","text":"the Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During","page_number":51,"box":{"x":116,"y":761,"width":761,"height":13}},{"id":"4a899c55-afc6-4d99-abcd-9a5651a3833d","block_type":"box","text":"the fiscal year ended December 31, 2025, the Compliance Committee met four times.","page_number":51,"box":{"x":116,"y":776,"width":591,"height":13}},{"id":"0365f893-c3f8-4250-9105-fbd10ae28701","block_type":"box","text":"Performance Oversight Committee.","page_number":51,"box":{"x":116,"y":800,"width":247,"height":13}},{"id":"ae310e75-103f-4b96-abf7-d953d4f8b20c","block_type":"box","text":"The members of the Performance Oversight Committee (the","page_number":51,"box":{"x":369,"y":800,"width":416,"height":13}},{"id":"002af382-fa33-4353-8781-2b855fe97e02","block_type":"box","text":"“Performance Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter,","page_number":51,"box":{"x":117,"y":815,"width":765,"height":13}},{"id":"08a41297-3802-435d-9942-929f1f3dcba5","block_type":"box","text":"Collette Chilton and Neil A. Cotty, all of whom are Independent Directors. The Performance Oversight","page_number":51,"box":{"x":117,"y":831,"width":718,"height":13}},{"id":"3f7bdb72-3945-42bf-935f-a0819eebef94","block_type":"box","text":"Committee’s purpose is to assist the Board in fulfilling its responsibility to oversee each Fund’s investment","page_number":51,"box":{"x":117,"y":846,"width":732,"height":13}},{"id":"51dcb528-a8ba-4f25-b5c6-7c01a9b74abd","block_type":"box","text":"performance relative to its agreed-upon performance objectives and to assist the Independent Directors in","page_number":51,"box":{"x":116,"y":862,"width":731,"height":13}},{"id":"db202013-86a8-4ca3-9c10-759608a7f418","block_type":"box","text":"I-26","page_number":51,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"a9e09e22-92cc-4082-ad75-cab162471ca1","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":51,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4ebb70ed-50bb-49f0-8e59-f6dde6dbe289","block_type":"box","text":"their consideration of investment advisory agreements. The Performance Oversight Committee’s","page_number":52,"box":{"x":116,"y":79,"width":667,"height":13}},{"id":"a1114bbf-1082-4373-a3f1-125446370adc","block_type":"box","text":"responsibilities include, without limitation, to (1) review information on, and make recommendations to the","page_number":52,"box":{"x":116,"y":94,"width":749,"height":13}},{"id":"29e12a43-be73-4fb2-89e3-5292f292ce24","block_type":"box","text":"full Board in respect of, each Fund’s investment objective, policies and practices; (2) review information on","page_number":52,"box":{"x":116,"y":110,"width":740,"height":13}},{"id":"082f8bf8-1541-421c-b5be-7910bca86934","block_type":"box","text":"each Fund’s investment performance; (3) review information on appropriate benchmarks and competitive","page_number":52,"box":{"x":116,"y":125,"width":733,"height":13}},{"id":"8daa8e3d-9261-4a4b-a40a-75be51ba522a","block_type":"box","text":"universes and unusual or exceptional investment matters; (4) review personnel and other resources devoted to","page_number":52,"box":{"x":116,"y":141,"width":760,"height":13}},{"id":"63abc3d1-6ea0-4d7e-88be-8559f2fbadb7","block_type":"box","text":"management of each Fund and evaluate the nature and quality of information furnished to the Performance","page_number":52,"box":{"x":116,"y":156,"width":747,"height":13}},{"id":"77d46a40-ff92-45ff-a8e8-66c697326a49","block_type":"box","text":"Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":52,"box":{"x":117,"y":172,"width":673,"height":13}},{"id":"f04f8aad-d32f-4e1c-bd14-05dcf4c4f726","block_type":"box","text":"non-fundamental investment policies and restrictions","page_number":52,"box":{"x":116,"y":187,"width":367,"height":13}},{"id":"c1b6a3fd-7da4-48d2-97b4-0b7a8a58f3e6","block_type":"box","text":", fund mergers or liquidations; (6) request and review","page_number":52,"box":{"x":484,"y":187,"width":369,"height":13}},{"id":"56d1a37a-6a1f-4180-bc5e-e3503793ca52","block_type":"box","text":"information on the nature, extent and quality of","page_number":52,"box":{"x":116,"y":203,"width":335,"height":13}},{"id":"4146d293-e6eb-417a-8a14-4681f77988af","block_type":"box","text":"services provided to the shareholders; (7) make","page_number":52,"box":{"x":455,"y":203,"width":325,"height":13}},{"id":"d914fb90-ded0-4fef-b395-aa47e86a08ac","block_type":"box","text":"recommendations to the Board concerning the approval or renewal of investment advisory agreements; and","page_number":52,"box":{"x":116,"y":218,"width":745,"height":13}},{"id":"175587a8-2d0b-484a-b234-7f434bfcda83","block_type":"box","text":"(8) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":52,"box":{"x":117,"y":234,"width":760,"height":13}},{"id":"ae9e7ca2-9e12-40ce-bdc8-f3de89808227","block_type":"box","text":"Performance Oversight Committee. The Board has adopted a written charter for the Performance Oversight","page_number":52,"box":{"x":116,"y":249,"width":749,"height":13}},{"id":"b3162537-3846-4775-a0c3-9adf50d08e49","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Performance Oversight Committee met","page_number":52,"box":{"x":117,"y":265,"width":729,"height":13}},{"id":"cd22102d-9958-4888-8da7-46cd1098a173","block_type":"box","text":"five times.","page_number":52,"box":{"x":116,"y":280,"width":69,"height":10}},{"id":"3ba4e3d2-5d0f-4bb6-b17e-b3bfec1a2ddc","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":52,"box":{"x":116,"y":304,"width":191,"height":12}},{"id":"fc5c38eb-0952-4c8f-b095-34f3591dd02e","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics","page_number":52,"box":{"x":313,"y":304,"width":481,"height":12}},{"id":"fe0db796-e298-41d8-a9b1-961f4fc628f8","block_type":"box","text":"Committee”) are Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors,","page_number":52,"box":{"x":117,"y":319,"width":742,"height":13}},{"id":"a7831cdc-775f-4bbc-b296-8c87fbbaf7ca","block_type":"box","text":"and John M. Perlowski, who serves as an interested Director. The principal responsibilities of the Ad Hoc","page_number":52,"box":{"x":116,"y":335,"width":733,"height":12}},{"id":"311e5b0a-cc20-4abc-b5d7-665c927ea790","block_type":"box","text":"Topics Committee are to (1) act on routine matters between meetings of the Board; (2) act on such matters as","page_number":52,"box":{"x":116,"y":350,"width":759,"height":13}},{"id":"da918f98-2242-4131-8c07-c45955914de5","block_type":"box","text":"may require urgent action between meetings of the Board; and (3) exercise such other authority as may from","page_number":52,"box":{"x":116,"y":366,"width":753,"height":12}},{"id":"e01757e2-d838-4556-be43-2b91d6be3a66","block_type":"box","text":"time to time be delegated to the Ad Hoc Topics Committee by the Board. The Board has adopted a written","page_number":52,"box":{"x":116,"y":381,"width":743,"height":13}},{"id":"48abe70f-d3d9-4d5f-bf04-1d830a2d72f9","block_type":"box","text":"charter for the Ad Hoc Topics Committee. During the fiscal year ended December 31, 2025, the Ad Hoc","page_number":52,"box":{"x":116,"y":397,"width":727,"height":12}},{"id":"c1cc27cd-4afa-43ea-a5a3-cc578ea4a24e","block_type":"box","text":"Topics Committee did not meet.","page_number":52,"box":{"x":116,"y":412,"width":224,"height":13}},{"id":"42514ac1-1322-462a-9f1a-1e9bb9a3d783","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications, skills","page_number":52,"box":{"x":116,"y":435,"width":763,"height":13}},{"id":"d4008f85-6e2d-4471-920e-4a26ab68f255","block_type":"box","text":"and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement of","page_number":52,"box":{"x":116,"y":451,"width":756,"height":13}},{"id":"06dfa540-bc4f-4b87-b199-3338394053f4","block_type":"box","text":"Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected","page_number":52,"box":{"x":116,"y":466,"width":748,"height":13}},{"id":"26e09885-0f93-426c-8ee1-da1617485a46","block_type":"box","text":"or appointed a Director, and continues to satisfy, the","page_number":52,"box":{"x":116,"y":482,"width":358,"height":13}},{"id":"daa1deb9-4390-4ebb-9674-f327cc62a7dc","block_type":"box","text":"standards contemplated by the Statement of Policy.","page_number":52,"box":{"x":478,"y":482,"width":346,"height":13}},{"id":"e01b6100-267e-4b32-bc24-c884eaf40461","block_type":"box","text":"Furthermore, in determining that a particular Independent Director was and continues to be qualified to serve as","page_number":52,"box":{"x":116,"y":497,"width":761,"height":13}},{"id":"b2406e20-dcd0-4f09-89b3-c0c157280950","block_type":"box","text":"a Director, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board","page_number":52,"box":{"x":116,"y":513,"width":764,"height":13}},{"id":"c9be78b3-17a6-4741-ab7e-91169e6d0558","block_type":"box","text":"believes that, collectively, the Independent Directors have balanced and diverse experience, skills, attributes and","page_number":52,"box":{"x":116,"y":528,"width":753,"height":13}},{"id":"9a2d5e4d-aa26-47d3-a22b-52dcc299c016","block_type":"box","text":"qualifications, which allow the Board to operate effectively in governing the Company and protecting the","page_number":52,"box":{"x":116,"y":544,"width":712,"height":13}},{"id":"6e484b82-a886-4572-ba3f-0e6cb1aed5b0","block_type":"box","text":"interests of shareholders. Among the attributes common to all Independent Directors are their ability to review","page_number":52,"box":{"x":116,"y":559,"width":749,"height":13}},{"id":"d3127981-da5b-479b-a5ff-d93ca10807f4","block_type":"box","text":"critically, evaluate, question and discuss information pro","page_number":52,"box":{"x":116,"y":575,"width":382,"height":13}},{"id":"6ee6cd24-1fcd-412b-82fb-3751d213edde","block_type":"box","text":"vided to them, to interact effectively with each Fund’s","page_number":52,"box":{"x":499,"y":575,"width":363,"height":13}},{"id":"cc971443-2200-4cd3-a751-ec68909f69b2","block_type":"box","text":"investment adviser, sub-advisers, other service providers, counsel and the Independent Registered Public","page_number":52,"box":{"x":116,"y":590,"width":702,"height":13}},{"id":"8bdc86e2-fd31-4e2a-9af5-c2132790fcb2","block_type":"box","text":"Accounting Firm, and to exercise effective business judgment in the performance of their duties as Directors.","page_number":52,"box":{"x":116,"y":606,"width":732,"height":13}},{"id":"4803fd6c-922a-4fd2-8a2a-33cf5fd2462a","block_type":"box","text":"Each Director’s ability to perform his or her duties effectively is evidenced by his or her educational","page_number":52,"box":{"x":116,"y":629,"width":688,"height":13}},{"id":"8ba47572-61c8-4c96-9429-74ff1e17501a","block_type":"box","text":"background or professional training; business, consulting, public service or academic positions; experience","page_number":52,"box":{"x":116,"y":645,"width":736,"height":12}},{"id":"5d639074-05cb-44f9-8bc8-f4b0ee1c9dca","block_type":"box","text":"from service as a board member of the Company and the other funds in the BlackRock Fund Complexes (and","page_number":52,"box":{"x":116,"y":660,"width":762,"height":13}},{"id":"fb7ae097-7276-4b19-a759-f6d20818c368","block_type":"box","text":"any predecessor funds), other investment funds, public companies, non-profit entities or other organizations;","page_number":52,"box":{"x":116,"y":676,"width":752,"height":12}},{"id":"752f8789-7a20-4d1a-b3fc-6b4002085d65","block_type":"box","text":"ongoing commitment to and participation in Board an","page_number":52,"box":{"x":116,"y":691,"width":377,"height":13}},{"id":"f6c4d036-b733-4ee5-b37f-d96eb17b8b2c","block_type":"box","text":"d Committee meetings, as well as his or her leadership","page_number":52,"box":{"x":494,"y":691,"width":375,"height":13}},{"id":"c6738031-130e-4ffe-86bb-e9d593a3eddb","block_type":"box","text":"of standing and ad hoc committees throughout the years; or other relevant life experiences.","page_number":52,"box":{"x":116,"y":707,"width":629,"height":12}},{"id":"e5a87609-b054-4502-9f02-caf58a0feac4","block_type":"box","text":"Directors Elect","page_number":52,"box":{"x":116,"y":730,"width":105,"height":10}},{"id":"e324d0e9-bfd6-46ad-9c54-36eda0868b73","block_type":"box","text":". Jeffrey Jarczyk and Marc D. Stern have been appointed as Directors of the Company effective","page_number":52,"box":{"x":222,"y":730,"width":657,"height":13}},{"id":"27b8ecda-4fa1-4f0c-a783-47d0cd3076f4","block_type":"box","text":"July 1, 2026 (each, a “Director-Elect”). Each Director Elect is expected to qualify as an Independent Director","page_number":52,"box":{"x":115,"y":745,"width":758,"height":13}},{"id":"b08aca8d-1cf7-484f-b077-c8a6b9734575","block_type":"box","text":"at the time of his service. Each Director Elect has been retained as a consultant to the Independent Directors to","page_number":52,"box":{"x":116,"y":761,"width":766,"height":13}},{"id":"3759ab2b-8362-47f2-8aaa-6e00c68ae692","block_type":"box","text":"assist the Independent Directors in the performance of their duties to the Company and is expected to serve in","page_number":52,"box":{"x":116,"y":776,"width":762,"height":13}},{"id":"e646947e-7c44-4fbd-a9e8-3e5979dbaa00","block_type":"box","text":"that capacity until July 1, 2026.","page_number":52,"box":{"x":116,"y":792,"width":219,"height":13}},{"id":"86f0aebf-8cb7-4985-9798-1167435b3023","block_type":"box","text":"I-27","page_number":52,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"a9dffd1e-e3d7-404e-a4eb-6aab1ef14b39","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":52,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3792a0de-ad6e-4b4b-9fb1-db0ef8ec48d8","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":53,"box":{"x":116,"y":79,"width":718,"height":13}},{"id":"c4e3f782-bf44-4b6a-8ea2-9d0db8250ea6","block_type":"box","text":"support the conclusion that each Director should serve on the Board.","page_number":53,"box":{"x":116,"y":94,"width":477,"height":13}},{"id":"b41dafc2-0887-49b3-b038-076ab0ab72ef","block_type":"box","text":"Directors","page_number":53,"box":{"x":116,"y":122,"width":53,"height":8}},{"id":"d78018c3-a457-4d3f-a4d1-36704e0e9959","block_type":"box","text":"Experience, Qualifications and Skills","page_number":53,"box":{"x":276,"y":122,"width":212,"height":10}},{"id":"9ab48750-f2d8-492d-af35-1aca6d32b290","block_type":"box","text":"Independent Directors","page_number":53,"box":{"x":116,"y":144,"width":130,"height":10}},{"id":"f8575a7b-963e-4ccb-b4c9-b09ca27c614e","block_type":"box","text":"Christopher J. Ailman","page_number":53,"box":{"x":116,"y":160,"width":128,"height":10}},{"id":"34f8fc81-1aa6-458d-b180-0be9ad96699f","block_type":"box","text":"Christopher Ailman has more than 30 years of experience in the financial services industry, including","page_number":53,"box":{"x":276,"y":160,"width":581,"height":10}},{"id":"6a2ad399-7ebe-467b-99cf-9b2ca0b5ff16","block_type":"box","text":"most recently serving as Chief Investment Officer of the California State Teachers Retirement System","page_number":53,"box":{"x":276,"y":170,"width":579,"height":10}},{"id":"25e12877-4b9a-4c96-9ceb-a2c5181aa62e","block_type":"box","text":"(CalSTRS) from 2000 to June 2024 where he led its investment program. Mr. Ailman currently is a","page_number":53,"box":{"x":277,"y":180,"width":569,"height":10}},{"id":"b36b9e56-28d8-43c2-9bb7-dec65086e5c2","block_type":"box","text":"principal at Ailman Advisers. In addition, he has held various roles in the industry, including as member","page_number":53,"box":{"x":276,"y":191,"width":598,"height":10}},{"id":"a720f8e0-2134-4625-9aac-e396a1f3778d","block_type":"box","text":"and chair of the asset owner committee of the Kroner Center for Financial Research, chairman of the","page_number":53,"box":{"x":276,"y":201,"width":580,"height":10}},{"id":"789b9e67-b5b2-43b0-8ae4-85b50fa5794e","block_type":"box","text":"North American Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital","page_number":53,"box":{"x":276,"y":211,"width":582,"height":10}},{"id":"c3204129-cc7a-41e4-b7b2-2713870ca53d","block_type":"box","text":"Markets Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":53,"box":{"x":276,"y":222,"width":576,"height":10}},{"id":"0caa45a7-964c-4252-a82e-1153a188cf4c","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the markets and the economy.","page_number":53,"box":{"x":276,"y":232,"width":603,"height":10}},{"id":"04c2be38-c55e-40c4-8b2e-0c19cc114efa","block_type":"box","text":"In addition, Mr. Ailman serves as a member of the Governance Committee and the Performance","page_number":53,"box":{"x":276,"y":242,"width":552,"height":10}},{"id":"a0ae9dee-3fe5-4f91-88d7-502af5e7d917","block_type":"box","text":"Oversight Committee.","page_number":53,"box":{"x":276,"y":253,"width":126,"height":10}},{"id":"f83b3976-be64-43d5-aafd-adf2bc045710","block_type":"box","text":"Susan J. Carter","page_number":53,"box":{"x":116,"y":269,"width":87,"height":9}},{"id":"7542e14a-1830-49a3-9f38-7336e7d0ee28","block_type":"box","text":"Susan J. Carter has over 35 years of experience in investment management. She has served as President &","page_number":53,"box":{"x":276,"y":268,"width":606,"height":10}},{"id":"30240fb7-2ba1-4f77-9650-8ed413c05900","block_type":"box","text":"Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a registered investment adviser focused","page_number":53,"box":{"x":276,"y":278,"width":591,"height":11}},{"id":"d7e3a35b-fefd-4ee8-a9ee-e520b3a4f1ea","block_type":"box","text":"on non-profit investors, from 1997 to 2013, Chief Executive Officer of CCI from 2013 to 2014 and","page_number":53,"box":{"x":276,"y":289,"width":574,"height":10}},{"id":"928e7cff-ff40-44eb-8a75-a57ab11ca4f6","block_type":"box","text":"Senior Advisor to CCI in 2015. Ms. Carter also served as director of the Pacific Pension Institute from","page_number":53,"box":{"x":276,"y":299,"width":587,"height":8}},{"id":"3fd41b37-aee3-4c60-9b94-6f3a20b40d97","block_type":"box","text":"2014 to 2018, trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":53,"box":{"x":276,"y":309,"width":569,"height":11}},{"id":"dce106ec-edb0-4805-bc84-8ab64b77ddb5","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business from 1997 to","page_number":53,"box":{"x":276,"y":320,"width":605,"height":10}},{"id":"16032481-a7e7-472f-8a26-bb838699f91d","block_type":"box","text":"2021, Advisory Board Member for Bridges Fund Management from 2016 to 2018, Advisory Board","page_number":53,"box":{"x":276,"y":330,"width":570,"height":10}},{"id":"9c8c08d6-0dfe-406e-949a-6ec76a0cac2d","block_type":"box","text":"Member for Girls Who Invest from 2015 to 2018 and Board Member thereof from 2018 to 2022, and","page_number":53,"box":{"x":276,"y":340,"width":588,"height":10}},{"id":"0f5bf795-8afe-467a-b36f-fae717093f5f","block_type":"box","text":"Practitioner Advisory Board Member for Private Capital Research Institute (“PCRI”) from 2017 to 2024.","page_number":53,"box":{"x":276,"y":351,"width":606,"height":10}},{"id":"d038ec2f-4d42-448a-8754-6b4aa2d4fa84","block_type":"box","text":"She currently serves as Member of the President’s Counsel for Commonfund. These positions have","page_number":53,"box":{"x":276,"y":361,"width":565,"height":10}},{"id":"482ef5ac-8470-487b-80e7-f65c9cc9897c","block_type":"box","text":"provided her with insight and perspective on the markets and the economy.","page_number":53,"box":{"x":276,"y":371,"width":432,"height":11}},{"id":"9a7346e7-98e4-4a31-be2a-decbab61c403","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the position of","page_number":53,"box":{"x":116,"y":387,"width":742,"height":10}},{"id":"5faff6e8-762d-43a7-ad97-43814a2595ce","block_type":"box","text":"Chief Investment Officer of Williams College from October 2006 to June 2023. Prior to that she was","page_number":53,"box":{"x":276,"y":397,"width":584,"height":11}},{"id":"b897abfe-462e-49c2-9d67-be696c0a9713","block_type":"box","text":"President and Chief Investment Officer of Lucent Asset Management Corporation, where she oversaw\r\n$","page_number":53,"box":{"x":276,"y":408,"width":591,"height":10}},{"id":"931955b5-2d05-4b17-900b-dcda69c0c6be","block_type":"box","text":"gp\r\napproximately $40 billion in pension and retirement savings assets for the company. These positions","page_number":53,"box":{"x":276,"y":418,"width":581,"height":10}},{"id":"cd554222-67af-4901-8f24-b0efc0ea019f","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy.","page_number":53,"box":{"x":276,"y":428,"width":466,"height":11}},{"id":"0c9a2ffb-57d1-4159-a9c2-5869ce18475e","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry, including 19 years","page_number":53,"box":{"x":116,"y":444,"width":760,"height":10}},{"id":"785caaf6-2c46-4dcc-8588-0a22eb2af5cb","block_type":"box","text":"at Bank of America Corporation and its affiliates, where he served, at different times, as the Chief","page_number":53,"box":{"x":276,"y":454,"width":566,"height":10}},{"id":"30e90c60-fc85-4b38-b83f-4813053e318a","block_type":"box","text":"Financial Officer of various businesses including Investment Banking, Global Markets, Wealth","page_number":53,"box":{"x":276,"y":464,"width":546,"height":11}},{"id":"ac5a0261-022e-4b80-9f47-1839daa71688","block_type":"box","text":"Management and Consumer and also served ten years as the Chief Accounting Officer for Bank of","page_number":53,"box":{"x":276,"y":475,"width":570,"height":10}},{"id":"c81f5714-8096-4fc0-b4d1-6c19b6526b29","block_type":"box","text":"America Corporation. Mr. Cotty has been determined by the Audit Committee to be an audit committee","page_number":53,"box":{"x":276,"y":485,"width":605,"height":10}},{"id":"c6e0aefb-85ce-48c3-9c60-3de88ddeee44","block_type":"box","text":"financial expert, as such term is defined in the applicable Commission rules.","page_number":53,"box":{"x":276,"y":495,"width":438,"height":11}},{"id":"48616c74-2727-495e-9910-5179758b28a5","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and global expertise","page_number":53,"box":{"x":116,"y":511,"width":755,"height":10}},{"id":"e0cffb72-e2ea-4964-b403-acafd9647f21","block_type":"box","text":"gained through his 35 year career at KPMG, a global professional services organization and by his","page_number":53,"box":{"x":276,"y":521,"width":569,"height":11}},{"id":"966d887a-8e98-4ee5-9016-2c66931e2687","block_type":"box","text":"service as a director to both publicly and privately held organizations. He has extensive experience with","page_number":53,"box":{"x":276,"y":532,"width":599,"height":10}},{"id":"8d9c9ab7-d2bd-48c6-8927-bd2e69ed1fe5","block_type":"box","text":"issues facing complex, global companies and expertise in financial reporting, accounting, auditing, risk","page_number":53,"box":{"x":276,"y":542,"width":594,"height":10}},{"id":"dfbd92b3-177a-4e68-b18c-0516c27b42f1","block_type":"box","text":"management, and regulatory affairs for such companies. Mr. Keizer’s experience also includes service as","page_number":53,"box":{"x":276,"y":552,"width":601,"height":11}},{"id":"14b98110-f68b-4033-8a21-af71a3f4ec9c","block_type":"box","text":"an audit committee chair to both publicly and privately held organizations across numerous industries","page_number":53,"box":{"x":276,"y":563,"width":591,"height":10}},{"id":"2881ec3a-37bb-470e-81d7-0bec55c5af1b","block_type":"box","text":"including professional services, property and casualty reinsurance, insurance, diversified financial","page_number":53,"box":{"x":276,"y":573,"width":562,"height":10}},{"id":"d7a77c30-357f-4bc1-a26f-0fb8dace4f58","block_type":"box","text":"services, banking, direct to consumer, business to business and technology. Mr. Keizer is a certified","page_number":53,"box":{"x":276,"y":583,"width":573,"height":11}},{"id":"dccfe3ec-c264-4742-b7b0-717d98bbb700","block_type":"box","text":"public accountant and also served on the board of the American Institute of Certified Public","page_number":53,"box":{"x":276,"y":594,"width":532,"height":10}},{"id":"2ff5f2c8-d492-4e12-b643-ea3989b16043","block_type":"box","text":"Accountants. Mr. Keizer has been determined by the Audit Committee to be an audit committee","page_number":53,"box":{"x":276,"y":604,"width":557,"height":10}},{"id":"2c850f5a-a214-4e96-bce0-6a16002ad5eb","block_type":"box","text":"financial expert, as such term is defined in the applicable Commission rules.","page_number":53,"box":{"x":276,"y":614,"width":438,"height":11}},{"id":"99823092-6004-462f-93ac-58e13f7828d2","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered investment companies,","page_number":53,"box":{"x":116,"y":630,"width":754,"height":10}},{"id":"b24ae28e-9f93-4c3a-80b0-49ee50ea8db7","block_type":"box","text":"most recently as a member of the boards of certain BlackRock-advised Funds and predecessor funds,","page_number":53,"box":{"x":276,"y":640,"width":574,"height":10}},{"id":"588dfc1f-695a-49f9-b924-2d0c6b11e020","block_type":"box","text":"including the legacy Merrill Lynch Investment Managers, L.P. (“MLIM”) funds. The Board benefits","page_number":53,"box":{"x":276,"y":651,"width":570,"height":10}},{"id":"32a186fe-fe84-46cc-a38c-d0631a3a4220","block_type":"box","text":"from Ms. Montgomery’s more than 20 years of academic experience as a professor at Harvard Business","page_number":53,"box":{"x":276,"y":661,"width":592,"height":10}},{"id":"1247387d-1520-4f7a-a2c5-015e557bbe54","block_type":"box","text":"School where she taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":53,"box":{"x":276,"y":671,"width":597,"height":10}},{"id":"d9b336db-a757-4518-b480-b2f0dbfc0ddf","block_type":"box","text":"has business management and corporate governance experience through her service on the corporate","page_number":53,"box":{"x":276,"y":682,"width":575,"height":10}},{"id":"fbbb7a10-5bc8-445b-83f6-affc70f67ba5","block_type":"box","text":"boards of a variety of public companies. She has also authored numerous articles and books on these","page_number":53,"box":{"x":276,"y":692,"width":576,"height":10}},{"id":"d4a66e30-a1be-4027-9502-0eb538386e5a","block_type":"box","text":"topics.","page_number":53,"box":{"x":276,"y":703,"width":36,"height":9}},{"id":"fc65fd81-d109-4f44-ae3c-fc6817f4b54b","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive experience, including","page_number":53,"box":{"x":116,"y":718,"width":749,"height":10}},{"id":"cfbb1b47-1008-46b4-aed4-ed7ed9832fb3","block_type":"box","text":"through his service as president, director and investment committee chair for academic and","page_number":53,"box":{"x":276,"y":728,"width":526,"height":10}},{"id":"a581e13f-2682-4856-b980-6ae76740ae1c","block_type":"box","text":"not-for-profit organizations, and his experience as a partner, managing director and advisory director at","page_number":53,"box":{"x":276,"y":738,"width":603,"height":11}},{"id":"6ee18848-11fe-4ff1-b079-85f10b600825","block_type":"box","text":"Goldman Sachs for 32 years. He also has investment management experience as a board member of","page_number":53,"box":{"x":276,"y":749,"width":578,"height":10}},{"id":"742bb816-a0b4-4a7d-9c56-0b866d8db74e","block_type":"box","text":"Athena Capital Advisors LLC.","page_number":53,"box":{"x":276,"y":759,"width":175,"height":10}},{"id":"16e7df8f-88ea-47a0-acf1-935fce01663e","block_type":"box","text":"I-28","page_number":53,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"79b0a715-0985-4711-aa7f-933a0348f88e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":53,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b10a0075-37ce-453e-ade1-807ff6a6b9f2","block_type":"box","text":"Directors","page_number":54,"box":{"x":116,"y":76,"width":53,"height":8}},{"id":"10115e8a-7356-417a-9bbd-f33868fc81ca","block_type":"box","text":"Experience, Qualifications and Skills","page_number":54,"box":{"x":276,"y":76,"width":212,"height":10}},{"id":"7156973d-634a-48ae-a89a-80cf3583b5bc","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry, most notably as \r\nhff hfff ld f h","page_number":54,"box":{"x":116,"y":94,"width":747,"height":11}},{"id":"7e6f7ae9-adf5-4589-9b93-992c54fc99e9","block_type":"box","text":"ypy, y \r\nthe first Director of the Office of Compliance Inspections and Examinations (“OCIE”) of the Securities\r\nd hfhf h","page_number":54,"box":{"x":276,"y":104,"width":596,"height":10}},{"id":"37741759-780c-49b6-a033-6e3f57a00568","block_type":"box","text":"pp() \r\nand Exchange Commission (“SEC”) from 1995 to 2009. During 14 years as the Director of OCIE, she\r\nld hdhfdl fdhdfd","page_number":54,"box":{"x":276,"y":114,"width":594,"height":10}},{"id":"9f0d72bb-c9c2-4199-bc97-538057190e5e","block_type":"box","text":"g() g y\r\nled the SEC’s nationwide examination oversight program for advisers, mutual funds, hedge funds,\r\nbkdlk hd hdfhfhh","page_number":54,"box":{"x":276,"y":124,"width":566,"height":10}},{"id":"7b5cb855-9f75-4bc8-bcd2-f5e971d69588","block_type":"box","text":"gpg, , g,\r\nbroker-dealers, stock exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held\r\nlhldAfffhfl","page_number":54,"box":{"x":276,"y":133,"width":585,"height":11}},{"id":"51c40c76-febd-4375-85ad-7c00c2a02b93","block_type":"box","text":", g, y , , \r\nvarious roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific Regional\r\nffd d dhhAhl","page_number":54,"box":{"x":276,"y":143,"width":585,"height":10}},{"id":"9af6651f-3351-40a7-b440-5bfaf6615ff5","block_type":"box","text":", g g\r\nOffice and executive assistant and senior advisor to then SEC Chairman Arthur Levitt. More recently,\r\nhdd hf lfff hAd lh lbl l","page_number":54,"box":{"x":276,"y":153,"width":590,"height":10}},{"id":"d07a3959-1b36-4cea-98ab-48472f5a8d03","block_type":"box","text":"y,\r\nMs. Richards served as Chief Compliance Officer of the Asset and Wealth Management global lines of\r\nbhfhhld lbl l","page_number":54,"box":{"x":276,"y":163,"width":594,"height":10}},{"id":"b6439988-6e75-4511-ab3e-97d3687b727e","block_type":"box","text":"pgg\r\nbusiness at JPMorgan Chase & Co. from 2013 to 2018 where she led its global compliance program,\r\ndd bldlk d","page_number":54,"box":{"x":276,"y":172,"width":586,"height":11}},{"id":"1e10b9ae-f4d6-491b-a9b6-8c6fac7466c1","block_type":"box","text":"Jggppg,\r\nadvised business leaders on compliance issues, oversaw risk assessment, monitoring, testing and training,\r\nd d lhh lddhdd bf h","page_number":54,"box":{"x":276,"y":182,"width":606,"height":10}},{"id":"0b425940-9fae-42f4-a971-38c733734a18","block_type":"box","text":"p, , g, g \r\nand maintained relationships with regulators. In addition, Ms. Richards served as a member of the\r\nl Addl f hl dlAhAf","page_number":54,"box":{"x":276,"y":192,"width":570,"height":10}},{"id":"3f5bdee9-2e41-405c-8bda-2129a95c38fe","block_type":"box","text":"pg, \r\nNational Adjudicatory Council of the Financial Industry Regulatory Authority (FINRA) from 2019 to\r\nd hld hhd hdhhfh","page_number":54,"box":{"x":276,"y":202,"width":591,"height":10}},{"id":"660b4a68-fa9e-4cb3-9342-ea4d844c067f","block_type":"box","text":"jy y gy y () \r\n2022 and held the chair and vice chair posts during her tenure. Prior thereto, from 2010 to 2013, she\r\nl hd ldf A","page_number":54,"box":{"x":276,"y":211,"width":586,"height":11}},{"id":"36e72b61-9f70-48f0-973d-7d8c6a805d9c","block_type":"box","text":"pg , , \r\nwas a Principal at PricewaterhouseCoopers LLP (“PwC”) and co-leader of its Asset Management\r\nlAhd bd f fl ld","page_number":54,"box":{"x":276,"y":221,"width":562,"height":10}},{"id":"35336026-6a81-470d-84fa-24011056b1c4","block_type":"box","text":"pp() g\r\nRegulatory group. At PwC, she assisted a broad range of financial services clients in designing and\r\nlk d ld fl","page_number":54,"box":{"x":276,"y":231,"width":569,"height":10}},{"id":"50b3dd3a-cc9a-4a2d-9015-a5a01b279520","block_type":"box","text":"gy gp, gg\r\nimplementing risk management and compliance programs, and preparing for new regulatory\r\nThhdd hh hd hk","page_number":54,"box":{"x":276,"y":241,"width":536,"height":10}},{"id":"aad5b466-5074-4458-98ad-c29be3ed1263","block_type":"box","text":"pg gppg, ppg gy\r\nexpectations. These positions have provided her with insight and perspective on the markets and the\r\nll ld lddhd","page_number":54,"box":{"x":276,"y":250,"width":580,"height":11}},{"id":"df148103-eccc-4692-81b8-d4ed9c4a99d1","block_type":"box","text":"pppgpp\r\neconomy, as well as asset management regulation and compliance. In addition, Ms. Richards serves as a\r\nbf hAdd hl","page_number":54,"box":{"x":276,"y":260,"width":601,"height":10}},{"id":"d493c4ae-580d-4adb-8369-2a69b5d7810b","block_type":"box","text":"y, ggp\r\nmember of the Audit Committee and the Compliance Committee.","page_number":54,"box":{"x":276,"y":270,"width":379,"height":10}},{"id":"9eb9ecde-86f7-4758-a9f5-fe73db90b026","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management from his over \r\nf hhf fff hf lll fh","page_number":54,"box":{"x":116,"y":285,"width":740,"height":10}},{"id":"350c6ff9-ab29-4ef4-8c62-26a4a5388f3a","block_type":"box","text":"gpg g\r\n13 years of service as the Chief Investment Officer of the University of Delaware as well as from his\r\nh lddd","page_number":54,"box":{"x":277,"y":295,"width":575,"height":10}},{"id":"11dbadb8-47e1-4b50-8824-e0e4ca9d2282","block_type":"box","text":"yy \r\nvarious positions with First Union Corporation, including Senior Vice President and State Investment\r\nf AdThd bffhd h","page_number":54,"box":{"x":276,"y":305,"width":586,"height":10}},{"id":"422e032b-e485-4331-93fa-3217705a4697","block_type":"box","text":"pp, g \r\nDirector of First Investment Advisors. The Board benefits from his experience and perspective as the\r\nhf fff dd fhhhd f","page_number":54,"box":{"x":276,"y":314,"width":580,"height":11}},{"id":"bea373c6-b785-4839-b3bd-0c5e5b04c1b8","block_type":"box","text":"ppp\r\nChief Investment Officer of a university endowment and from the oversight experience he gained from\r\nd fbd","page_number":54,"box":{"x":276,"y":324,"width":593,"height":10}},{"id":"5c06b6da-8ae0-4075-8ea0-25e801bc2c4c","block_type":"box","text":"y \r\nservice on various private and non-profit boards.","page_number":54,"box":{"x":276,"y":334,"width":282,"height":10}},{"id":"52f85614-a122-4e8d-ae82-b059e157618e","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment companies, most \r\nlbf hbdf lkkdd dd dfd","page_number":54,"box":{"x":116,"y":349,"width":751,"height":10}},{"id":"006f784f-815a-4268-a98a-8ce9bc70c65c","block_type":"box","text":"ygp\r\nrecently as a member of the boards of certain BlackRock-advised Funds and predecessor funds,\r\nldhllkk fdhf bl","page_number":54,"box":{"x":276,"y":359,"width":550,"height":10}},{"id":"a79fa9bf-4404-4a47-8c52-d34a3749e048","block_type":"box","text":"y p,\r\nincluding the legacy BlackRock funds. He has over 30 years of experience in public accounting.\r\nh hd bf d lfh h","page_number":54,"box":{"x":276,"y":368,"width":551,"height":11}},{"id":"ecc3448d-4212-441c-9ec3-0f973d5cbd08","block_type":"box","text":"g gy yppg\r\nMr. Urish has served as a managing member of an accounting and consulting firm. Mr. Urish has been\r\ndd bhAdbdfl h dfd","page_number":54,"box":{"x":276,"y":378,"width":594,"height":10}},{"id":"96cef8a4-7425-4aa4-9e98-a2eeb7d6eb91","block_type":"box","text":"gg g g \r\ndetermined by the Audit Committee to be an audit committee financial expert, as such term is defined in\r\nhlbll","page_number":54,"box":{"x":276,"y":388,"width":604,"height":10}},{"id":"62ce50f6-89e7-4154-b49d-6dea875c71e6","block_type":"box","text":"y \r\nthe applicable Commission rules.","page_number":54,"box":{"x":276,"y":398,"width":191,"height":10}},{"id":"a1019f68-e73f-4207-be72-e9067dac2d9e","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has served as the Chief \r\nffd hf l fff bAf","page_number":54,"box":{"x":116,"y":413,"width":767,"height":10}},{"id":"cee57a8b-da80-4ca1-a08b-3e1e31caf221","block_type":"box","text":"ypg\r\nOperating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to\r\nhld lhd","page_number":54,"box":{"x":276,"y":422,"width":588,"height":11}},{"id":"fab3543c-2e84-49b4-af6d-4d5ba8750ff9","block_type":"box","text":"pg y qg, \r\n2015, an investment manager that specialized in long/short non-U.S. equity investments, and was an\r\nd l f bl ff","page_number":54,"box":{"x":276,"y":432,"width":580,"height":10}},{"id":"14f7e7e0-a290-4c68-8337-0c6a299f389a","block_type":"box","text":", gpgqy , \r\nowner and General Partner of Neon Liberty Capital Management, LLC from 2003 to 2023, a firm\r\nflhlbl d fkThh","page_number":54,"box":{"x":276,"y":442,"width":571,"height":10}},{"id":"6b976b36-cf42-4424-989c-8d99e321e35a","block_type":"box","text":"y pg, , \r\nfocusing on long/short equities in global emerging and frontier markets. These positions have provided\r\nhh hd hkd hlhbdd b","page_number":54,"box":{"x":276,"y":452,"width":594,"height":10}},{"id":"ff093c9e-5560-4e76-8fdb-2b12bb707b00","block_type":"box","text":"g gqggg pp\r\nher with insight and perspective on the markets and the economy. Ms. Walton has been determined by\r\nhAdbdfl h dfd hlbl","page_number":54,"box":{"x":276,"y":461,"width":594,"height":11}},{"id":"ca9fcc73-f61b-4087-ae5e-a6d288cdf523","block_type":"box","text":"gppyy\r\nthe Audit Committee to be an audit committee financial expert, as such term is defined in the applicable\r\nl","page_number":54,"box":{"x":276,"y":471,"width":602,"height":10}},{"id":"b94df6fd-6c67-43c5-a210-b8b630264a7d","block_type":"box","text":"Commission rules.","page_number":54,"box":{"x":276,"y":481,"width":106,"height":8}},{"id":"be8b2bd8-2d57-440b-85c7-8e9328f0e47c","block_type":"box","text":"Directors Elect","page_number":54,"box":{"x":116,"y":498,"width":87,"height":8}},{"id":"88b9f29b-9d76-433c-aa67-879d14610ee0","block_type":"box","text":"Jeffrey Jarczyk Mr. Jarczyk is a CPA and has more than 30 years of experience in the financial services industry, \r\nlddlhhddffhhf A","page_number":54,"box":{"x":115,"y":513,"width":721,"height":11}},{"id":"cc466af0-37a9-46ec-b497-63f28732d764","block_type":"box","text":"Jyypy, including over 19 years at Fidelity Investments, where he served, at different times, as the Chief Auditor\r\nd hhf Afff dlk","page_number":54,"box":{"x":276,"y":523,"width":600,"height":10}},{"id":"00b988ca-21ba-4e0c-9736-d5525733723a","block_type":"box","text":"g yy , , , \r\nand the Chief Accounting Officer of Fidelity Investments’ parent company, FMR LLC. Prior to working\r\ndlk ld AhAdfl","page_number":54,"box":{"x":276,"y":533,"width":602,"height":10}},{"id":"e4504361-28a5-4dd6-8128-dbc8250d6411","block_type":"box","text":"g y ppy, \r\nat Fidelity, Mr. Jarczyk was a partner at Deloitte and Arthur Andersen for approximately 17 years.\r\nThhlld hk lh dd k d","page_number":54,"box":{"x":276,"y":543,"width":573,"height":10}},{"id":"3e9ffb06-8246-454e-86d2-f69f16917c78","block_type":"box","text":"y, Jypppy y\r\nThese positions have allowed him to work extensively with audit and risk committees and company\r\nhldfd kffl","page_number":54,"box":{"x":276,"y":552,"width":578,"height":11}},{"id":"ac8c218d-aba7-48c5-bac1-9fdd0335ba62","block_type":"box","text":"py \r\nexecutives helping to identify, manage and mitigate risks for financial services companies.","page_number":54,"box":{"x":276,"y":562,"width":517,"height":10}},{"id":"4ef06c71-0aa8-4be9-8563-c39828660946","block_type":"box","text":"Marc D. Stern","page_number":54,"box":{"x":116,"y":578,"width":82,"height":7}},{"id":"7319105b-bca2-484a-9bc3-09ff8ec5456f","block_type":"box","text":"Mr. Stern has more than 30 years of experience in inve\r\nhf ffTlh","page_number":54,"box":{"x":276,"y":577,"width":307,"height":10}},{"id":"e587d095-86fc-474c-82f7-1f6f472f71ed","block_type":"box","text":"sting and asset management. Mr. Stern served as the \r\nbfh","page_number":54,"box":{"x":584,"y":577,"width":293,"height":10}},{"id":"c7292a29-1187-4f32-a1ef-eb9b56e19c1a","block_type":"box","text":"yp\r\nChief Executive Officer at Bessemer Trust, a wealth ma\r\nd hfbd","page_number":54,"box":{"x":276,"y":587,"width":310,"height":10}},{"id":"e5429dcf-4e17-414e-baca-0446e8612863","block_type":"box","text":"g g\r\nnagement business, for 13 years. During his tenure \r\nd f dhd hbdd","page_number":54,"box":{"x":587,"y":587,"width":283,"height":10}},{"id":"ce2ae944-d8da-4d8b-88d9-607af388ea97","block_type":"box","text":", g, yg \r\nat Bessemer Trust, Mr. Stern served on the firm’s board of directors, chaired the board’s trust and\r\nd ld hfld hf","page_number":54,"box":{"x":276,"y":597,"width":549,"height":10}},{"id":"b56c6b4b-8589-4cb9-a8b9-58ca967e18f7","block_type":"box","text":", \r\ninvestment committee, and led the firm’s executi\r\nfffhhh","page_number":54,"box":{"x":276,"y":606,"width":271,"height":10}},{"id":"4f87f13d-d424-46d0-8694-83756181b298","block_type":"box","text":", \r\nve committee. He also served as Bessemer’s Chief","page_number":54,"box":{"x":548,"y":606,"width":276,"height":8}},{"id":"289a6858-887f-4c99-a84e-d8c8b36b5f09","block_type":"box","text":", \r\nInvestment Officer for 8 years, where he was Chair o\r\nblfll lld","page_number":54,"box":{"x":276,"y":616,"width":297,"height":10}},{"id":"cb443113-11b9-4db8-98a5-ae5a637f3ed8","block_type":"box","text":"f the Investment Policy and Strategy Committee with \r\nld hf h","page_number":54,"box":{"x":574,"y":616,"width":295,"height":10}},{"id":"8b098d42-9056-4cc3-b0ec-226d65facda3","block_type":"box","text":"y, \r\nresponsibility for overall asset allocation and investm\r\nlAll","page_number":54,"box":{"x":276,"y":626,"width":298,"height":10}},{"id":"75a34fd0-a22b-48e4-92a9-ab76c00b69c1","block_type":"box","text":"y gy \r\nent strategy. Mr. Stern also served as Chair of the \r\nThdh h","page_number":54,"box":{"x":574,"y":626,"width":278,"height":10}},{"id":"cf6c93cd-ae5c-44af-b1c5-34b9b6a6dbd2","block_type":"box","text":"py \r\nPrivate Clients Investment group at AllianceBernstein\r\nh","page_number":54,"box":{"x":276,"y":636,"width":299,"height":10}},{"id":"f567a347-25ed-454e-9df3-dbfca2df9bda","block_type":"box","text":"gy\r\n. These positions provide Mr. Stern with insight and \r\nd fd","page_number":54,"box":{"x":576,"y":636,"width":291,"height":10}},{"id":"f2e56a0d-6149-4868-b7e8-ab952e77bca9","block_type":"box","text":"gp pp\r\nperspective into investment management, the economy, and fiduciary governance.","page_number":54,"box":{"x":276,"y":645,"width":458,"height":11}},{"id":"b66bc115-7d67-4125-a564-1be8933a6bc3","block_type":"box","text":"Interested Directors","page_number":54,"box":{"x":116,"y":663,"width":115,"height":8}},{"id":"8e4332da-6d1d-4422-ab08-8b3b2d3724a5","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30 years of \r\nfd lbh","page_number":54,"box":{"x":116,"y":678,"width":725,"height":10}},{"id":"7fd2c298-5edc-4e18-a6fd-1965b4b95b35","block_type":"box","text":"yp, y\r\nexperience in finance and asset management. In particular, Mr. Fairbairn’s positions as Vice Chairman\r\nf lkkbf lkklbl d hf lkk","page_number":54,"box":{"x":276,"y":688,"width":594,"height":10}},{"id":"24526a9e-38bd-4843-827c-ed48a18aa0f4","block_type":"box","text":"pgp, p\r\nof BlackRock, Inc., Member of BlackRock’s Global Operating Committee and Co-Chair of BlackRock’s\r\nl dhd h lh f l bkldd","page_number":54,"box":{"x":276,"y":697,"width":603,"height":11}},{"id":"2b3fddd0-a2d5-4792-be6f-24a4548f41ef","block_type":"box","text":", , pg \r\nHuman Capital Committee provide the Board with a wealth of practical business knowledge and\r\nldhddbhlbl d h","page_number":54,"box":{"x":276,"y":707,"width":561,"height":10}},{"id":"0ffb0c48-dbb2-4256-ab29-bbbbfceff139","block_type":"box","text":"pppg\r\nleadership. In addition, Mr. Fairbairn has global investment management and oversight experience\r\nhh hfbf lkklbl lbl","page_number":54,"box":{"x":276,"y":717,"width":571,"height":10}},{"id":"fd30e601-a5af-4bd8-99c5-4c3c180cdb36","block_type":"box","text":"p, gggp\r\nthrough his former positions as Member of BlackRock’s Global Executive Committee, Global Head of\r\nlkkl d h\r\n® b\r\nd f lkklbl lhf","page_number":54,"box":{"x":276,"y":727,"width":594,"height":10}},{"id":"9e14da34-a97b-4c1f-b61e-cbcff14b0ceb","block_type":"box","text":"gp\r\nBlackRock’s Retail and iShares","page_number":54,"box":{"x":276,"y":736,"width":179,"height":8}},{"id":"efe2d5d4-b25c-433a-ae3e-5cb8ab18b65b","block_type":"box","text":"®","page_number":54,"box":{"x":456,"y":736,"width":7,"height":6}},{"id":"0bab7e9d-e76b-4adf-9be3-d29858ddcd9b","block_type":"box","text":", \r\nbusinesses, Head of BlackRock’s Global Client Group, Chairman of \r\nd hhlkk","page_number":54,"box":{"x":468,"y":736,"width":394,"height":11}},{"id":"fa9ca676-c628-480f-91f1-cba104009e92","block_type":"box","text":", p, \r\nBlackRock’s international businesses and his previous oversight over BlackRock’s Strategic Partner\r\nd dblbd bf","page_number":54,"box":{"x":276,"y":746,"width":572,"height":10}},{"id":"9e112f89-dbc8-4c26-a6fe-20b4d676b347","block_type":"box","text":"pgg\r\nProgram and Strategic Product Management Group. 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Perlowski’s experience as Managing Direct\r\nlkk lbl Ad d","page_number":54,"box":{"x":275,"y":781,"width":292,"height":10}},{"id":"fb5b3d16-f8f6-41c0-a1bf-63d4099836e3","block_type":"box","text":"or of BlackRock, Inc. since 2009, as the Head of \r\nd dd hf","page_number":54,"box":{"x":568,"y":781,"width":273,"height":10}},{"id":"e2702b20-585c-4cf3-8c39-011dd26bbad9","block_type":"box","text":"Jpgg \r\nBlackRock Global Accounting and Product Services \r\nfff hlkkdd ddh","page_number":54,"box":{"x":276,"y":791,"width":290,"height":10}},{"id":"2809302c-749e-47e4-8172-55a16c895a24","block_type":"box","text":", , \r\nsince 2009, and as President and Chief Executive \r\nh ddf hlkk","page_number":54,"box":{"x":571,"y":791,"width":274,"height":9}},{"id":"d7c13fef-dbe2-4886-84e6-455eed62b2b0","block_type":"box","text":"g \r\nOfficer of the BlackRock-advised Funds provides \r\ndd dhd 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Amounts shown may include shares as to which a Director has indirect beneficial ownership,","page_number":58,"box":{"x":116,"y":590,"width":762,"height":13}},{"id":"32850901-703b-4df6-90ce-9791e62e784b","block_type":"box","text":"such as through participation in certain family accounts, 529 college savings plan interests, or similar","page_number":58,"box":{"x":116,"y":606,"width":700,"height":13}},{"id":"86304e64-7d1f-4a9b-b3a8-db85be6bd5e9","block_type":"box","text":"arrangements where the Director has beneficial","page_number":58,"box":{"x":116,"y":621,"width":327,"height":13}},{"id":"ecaeb76a-98ba-4867-a7a0-ce38117a250d","block_type":"box","text":"economic interest but not a direct ownership interest.","page_number":58,"box":{"x":448,"y":621,"width":368,"height":13}},{"id":"f6dd5ea2-a518-4b05-b3ee-70cc625cb2cb","block_type":"box","text":"Name","page_number":58,"box":{"x":158,"y":679,"width":35,"height":8}},{"id":"9c791e8f-3928-46eb-9ae5-8e6e18f14b68","block_type":"box","text":"Dollar","page_number":58,"box":{"x":666,"y":648,"width":37,"height":8}},{"id":"872fa27d-41f8-481d-9d05-033c2bdcc079","block_type":"box","text":"Range of Equity","page_number":58,"box":{"x":638,"y":658,"width":94,"height":10}},{"id":"3d930b8a-d265-4628-afb8-132cfc76795f","block_type":"box","text":"Securities in","page_number":58,"box":{"x":651,"y":669,"width":68,"height":8}},{"id":"776b4268-424a-4077-bacd-e97f0a929daf","block_type":"box","text":"each Fund","page_number":58,"box":{"x":655,"y":679,"width":59,"height":8}},{"id":"960a78f1-e4f7-4957-a7ec-dc25da494e11","block_type":"box","text":"Aggregate Dollar","page_number":58,"box":{"x":783,"y":648,"width":99,"height":10}},{"id":"9762fbc6-e373-44dd-bfa8-23790987bb01","block_type":"box","text":"Range of Equity","page_number":58,"box":{"x":786,"y":658,"width":94,"height":10}},{"id":"f6531f35-0bb2-4638-b4f0-799a99c2dd27","block_type":"box","text":"Securities in","page_number":58,"box":{"x":799,"y":669,"width":68,"height":8}},{"id":"c70d0ae1-fb21-4306-ac9f-4ece5ad9c830","block_type":"box","text":"Supervised Funds","page_number":58,"box":{"x":783,"y":679,"width":100,"height":10}},{"id":"3a22174d-cb8f-48b3-88e2-d4b607c33579","block_type":"box","text":"Independent Directors","page_number":58,"box":{"x":116,"y":701,"width":130,"height":10}},{"id":"cd2eb567-e648-4fb5-a13f-6df3178b3d88","block_type":"box","text":"Christopher J. 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Only portfolio managers who manage specified products and whose total compensation is","page_number":72,"box":{"x":116,"y":590,"width":766,"height":13}},{"id":"08e76c7b-f042-46e2-b031-d59978dfca1d","block_type":"box","text":"above a specified threshold are eligible to participate in the deferred cash award program.","page_number":72,"box":{"x":116,"y":606,"width":620,"height":13}},{"id":"86cac9de-7117-4946-8025-124fa08bb1ae","block_type":"box","text":"Other Compensation Benefits.","page_number":72,"box":{"x":116,"y":629,"width":211,"height":13}},{"id":"aac140a8-6115-404f-9011-f5a228360ad9","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":72,"box":{"x":332,"y":629,"width":538,"height":13}},{"id":"0814d89d-ddee-45dc-8550-974271b945c7","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":72,"box":{"x":116,"y":645,"width":569,"height":12}},{"id":"26bc2b7f-bbd3-4082-af72-0ab10405d392","block_type":"box","text":"Incentive Savings Plans","page_number":72,"box":{"x":116,"y":668,"width":157,"height":13}},{"id":"518951fa-572b-44b0-947f-555bd63a9505","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":72,"box":{"x":278,"y":668,"width":587,"height":13}},{"id":"51eae2d1-8074-4a5f-9a96-00dc3341193e","block_type":"box","text":"employees are eligible to participate, including a 401(k)","page_number":72,"box":{"x":116,"y":683,"width":374,"height":13}},{"id":"76a35a10-827b-4091-8815-0198e0c1dc6a","block_type":"box","text":"plan, the BlackRock Retirement Savings Plan (RSP), and","page_number":72,"box":{"x":495,"y":683,"width":383,"height":13}},{"id":"e186b955-6d23-4e79-83dd-05714106fd52","block_type":"box","text":"the BlackRock Employee Stock Purchase Plan (ESPP). 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The RSP offers","page_number":72,"box":{"x":116,"y":745,"width":399,"height":13}},{"id":"d76a50f5-9939-4504-b03d-cf311f978f76","block_type":"box","text":"a range of investment options, including registered","page_number":72,"box":{"x":520,"y":745,"width":341,"height":13}},{"id":"bf6b5317-6059-4ee8-85ec-1f368c48785a","block_type":"box","text":"investment companies and collective investment funds","page_number":72,"box":{"x":116,"y":761,"width":366,"height":13}},{"id":"befb3888-1e52-4773-84b4-7a58057b260d","block_type":"box","text":"managed by the firm. BlackRock contributions follow the","page_number":72,"box":{"x":486,"y":761,"width":392,"height":13}},{"id":"129453e0-c4e6-4b9a-8a3a-431dd42e6680","block_type":"box","text":"investment direction set by participants for their own c","page_number":72,"box":{"x":116,"y":776,"width":371,"height":13}},{"id":"5d34fbff-0d68-4082-9390-47c33030c552","block_type":"box","text":"ontributions or, absent participant investment direction,","page_number":72,"box":{"x":487,"y":776,"width":379,"height":13}},{"id":"a54e43c0-91dd-453b-9a88-5502847fdd13","block_type":"box","text":"are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains","page_number":72,"box":{"x":116,"y":792,"width":754,"height":13}},{"id":"581f474e-b7a8-48dc-b2b8-5f011c460050","block_type":"box","text":"age 65. The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value","page_number":72,"box":{"x":116,"y":807,"width":757,"height":13}},{"id":"79928d89-8be1-4292-9c54-246eb71ff62c","block_type":"box","text":"of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of","page_number":72,"box":{"x":116,"y":823,"width":757,"height":13}},{"id":"c7d40770-8863-4f8c-832b-7beae65b80bf","block_type":"box","text":"common stock or a dollar value of $25,000 based on its fair market value on the purchase date. With the","page_number":72,"box":{"x":116,"y":838,"width":713,"height":13}},{"id":"b5b1527f-1a89-4861-a2ef-1d33c7a21459","block_type":"box","text":"exception of Mr. Andrews and Mses. Greenen and Treharne, the portfolio managers of these funds are eligible","page_number":72,"box":{"x":116,"y":854,"width":749,"height":13}},{"id":"e6547fdd-74e8-4427-8cbe-b357cbe25ece","block_type":"box","text":"to participate in these plans.","page_number":72,"box":{"x":116,"y":869,"width":189,"height":13}},{"id":"c9daf881-791d-4276-b9b9-2ddea7413edd","block_type":"box","text":"I-47","page_number":72,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"b61414e2-a164-4407-b991-59aa249bb838","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":72,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bb814889-1eff-41fb-8d37-022869a1ea99","block_type":"box","text":"Hong Kong-based portfolio managers are also eligible to","page_number":73,"box":{"x":116,"y":79,"width":393,"height":13}},{"id":"a179f93a-5fdf-4859-bf8a-fc99c53a5c98","block_type":"box","text":"participate in broad-based plans offered generally to","page_number":73,"box":{"x":514,"y":79,"width":362,"height":13}},{"id":"8623b029-b0f4-4f0f-9889-162230850460","block_type":"box","text":"BlackRock employees, including broad-based retirement, health and other employee benefit plans. For","page_number":73,"box":{"x":116,"y":94,"width":710,"height":13}},{"id":"910e3075-3cb2-4b03-8b9c-6924fe91d800","block_type":"box","text":"example, BlackRock Inc. has created a variety of incentive savings plans in which employees are eligible to","page_number":73,"box":{"x":116,"y":110,"width":737,"height":13}},{"id":"0e44b89b-9a0a-47d7-bcab-849b34ccd0d8","block_type":"box","text":"participate, including the Hong Kong Employee Retirement Plan (ERP) that includes the Mandatory","page_number":73,"box":{"x":116,"y":125,"width":696,"height":13}},{"id":"f9c579da-0d9f-4f52-acc6-8aeea37bd80c","block_type":"box","text":"Provident Fund (MPF) plan and BlackRock ORSO Retirement Plan (ORSO), and the BlackRock Employee","page_number":73,"box":{"x":116,"y":141,"width":745,"height":13}},{"id":"02312945-7d55-4308-809e-309551f9e413","block_type":"box","text":"Stock Purchase Plan (ESPP). BlackRock contributes 5% to the ERP and will match 2~5% employee’s monthly","page_number":73,"box":{"x":116,"y":156,"width":766,"height":13}},{"id":"f4548c5b-f471-4ec4-b2d5-849ac46e8a30","block_type":"box","text":"voluntary contribution. The ORSO offers a range of","page_number":73,"box":{"x":116,"y":172,"width":364,"height":13}},{"id":"8a1cfd35-4167-41d2-8fc0-6f69ae37215c","block_type":"box","text":"investment options and the funds are managed by the","page_number":73,"box":{"x":484,"y":172,"width":371,"height":13}},{"id":"2f018283-3192-4b7f-8108-c41e64c90be5","block_type":"box","text":"firm. BlackRock contributions follow the investment direc","page_number":73,"box":{"x":116,"y":187,"width":404,"height":10}},{"id":"edfd95c4-298d-4f80-82bf-5c7750bd4304","block_type":"box","text":"tion set by participants for their own contributions.","page_number":73,"box":{"x":520,"y":187,"width":356,"height":13}},{"id":"39d61f50-8430-4fa6-8f47-d3035617899e","block_type":"box","text":"The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the","page_number":73,"box":{"x":116,"y":203,"width":765,"height":10}},{"id":"307ca2e4-6cfb-4234-8bf6-f2515f0eadf2","block_type":"box","text":"stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of","page_number":73,"box":{"x":116,"y":218,"width":731,"height":13}},{"id":"dc77e585-3dd6-45e5-8343-3844f5353844","block_type":"box","text":"common stock or a US dollar value of $25,000 based on its fair market value on the purchase date. Mr.","page_number":73,"box":{"x":116,"y":234,"width":720,"height":13}},{"id":"10a09a24-b7bd-4b65-b548-f1ce032c6eda","block_type":"box","text":"Andrews is eligible to participate in these plans.","page_number":73,"box":{"x":116,"y":249,"width":329,"height":13}},{"id":"19fb5ed7-969d-4c1c-bdd1-e01393d5c801","block_type":"box","text":"United Kingdom-based portfolio managers are also elig","page_number":73,"box":{"x":116,"y":273,"width":384,"height":12}},{"id":"688db90f-573b-4b73-bb9b-bbf43ecdeaa0","block_type":"box","text":"ible to participate in broad-based plans offered","page_number":73,"box":{"x":500,"y":273,"width":324,"height":12}},{"id":"d5b824af-c95e-40bd-a984-758fa685af48","block_type":"box","text":"generally to BlackRock employees, including broad-based","page_number":73,"box":{"x":116,"y":288,"width":401,"height":13}},{"id":"bfb08874-3001-4fd9-87bb-f63c6d787a3c","block_type":"box","text":"retirement, health and other employee benefit plans.","page_number":73,"box":{"x":521,"y":288,"width":361,"height":13}},{"id":"752e0b82-26eb-44b5-9f38-b7acdda27c20","block_type":"box","text":"For example, BlackRock has created a variety of incentive savings plans in which BlackRock employees are","page_number":73,"box":{"x":116,"y":304,"width":744,"height":12}},{"id":"54cfa5f4-dff1-46d2-acb0-85e006d9798c","block_type":"box","text":"eligible to participate, including the BlackRock Retirement Savings Plan (RSP) and the BlackRock Employee","page_number":73,"box":{"x":116,"y":319,"width":750,"height":13}},{"id":"9fe4c4c2-f611-4f4d-8f99-27516bbf3c53","block_type":"box","text":"Stock Purchase Plan (ESPP). The employer contribution to the RSP is between 10% and 15% of eligible pay","page_number":73,"box":{"x":116,"y":335,"width":751,"height":12}},{"id":"16aab2a9-a52a-42e3-a927-f80401a8d669","block_type":"box","text":"capped at £160,000 per annum. The RSP offers a range of investment options, including several collective","page_number":73,"box":{"x":116,"y":350,"width":735,"height":13}},{"id":"19187d4f-8eec-4d34-b79c-399b7f751008","block_type":"box","text":"investment funds managed by the firm. BlackRock c","page_number":73,"box":{"x":116,"y":366,"width":362,"height":12}},{"id":"76fbdc61-973b-4558-ae8a-70f2f71f26fe","block_type":"box","text":"ontributions follow the investment direction set by","page_number":73,"box":{"x":479,"y":366,"width":350,"height":12}},{"id":"c6b39a5b-518e-4629-809c-27135c6217ff","block_type":"box","text":"participants for their own contributions or, in the absence of an investment election being made, are invested","page_number":73,"box":{"x":116,"y":381,"width":754,"height":13}},{"id":"c34e6ab3-c357-4227-a4c6-7ce48d07ad61","block_type":"box","text":"into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65.","page_number":73,"box":{"x":116,"y":397,"width":741,"height":12}},{"id":"45826aaa-fd30-4504-bf0f-c18138ec572f","block_type":"box","text":"The ESPP allows for investment in BlackRock common stock at a 5% discount on the fair market value of the","page_number":73,"box":{"x":116,"y":412,"width":765,"height":10}},{"id":"ffb3a47f-1448-436d-baad-9316fa092ca0","block_type":"box","text":"stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of","page_number":73,"box":{"x":116,"y":428,"width":731,"height":12}},{"id":"a6b006e6-398b-4b46-9e24-73e0d29fc2c3","block_type":"box","text":"common stock or a US dollar value of $25,000 based on its fair market value on the purchase date. Mses.","page_number":73,"box":{"x":116,"y":443,"width":733,"height":13}},{"id":"bb2e8e35-b4b9-43e9-aaae-e09dabb510fe","block_type":"box","text":"Greenen and Treharne is eligible to participate in these plans.","page_number":73,"box":{"x":117,"y":459,"width":423,"height":12}},{"id":"1feeaed5-1abb-4379-9492-e6dfbf81d801","block_type":"box","text":"Portfolio Manager Potential Material Conflicts of Interest","page_number":73,"box":{"x":136,"y":487,"width":427,"height":13}},{"id":"4c91cff7-95f6-42ce-b5fa-60a79fa54e04","block_type":"box","text":"BlackRock has built a professional working environm","page_number":73,"box":{"x":116,"y":513,"width":365,"height":13}},{"id":"ec399705-91da-43ef-9d32-34721c205fa8","block_type":"box","text":"ent, firm-wide compliance culture and compliance","page_number":73,"box":{"x":482,"y":513,"width":339,"height":13}},{"id":"50bf98b6-dd7d-4255-bafc-268c5576c8f8","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":73,"box":{"x":116,"y":528,"width":766,"height":13}},{"id":"c6ff2dd2-39fc-4cdc-87a0-11afbbf4f2bc","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities,","page_number":73,"box":{"x":116,"y":544,"width":701,"height":13}},{"id":"19082eaf-a6bc-4ea8-b1ae-01cbbb19d9b6","block_type":"box","text":"execution of portfolio transactions, personal trading by","page_number":73,"box":{"x":116,"y":559,"width":374,"height":13}},{"id":"1165570c-e2c9-4132-bc6d-02b5b795a1c4","block_type":"box","text":"employees and other potential conflicts of interest that","page_number":73,"box":{"x":495,"y":559,"width":368,"height":13}},{"id":"602a0ab6-98e8-4ae7-8aef-6e26f0058fa4","block_type":"box","text":"are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes","page_number":73,"box":{"x":116,"y":575,"width":759,"height":13}},{"id":"71683f86-930e-4824-a4cb-2e76ce98e03f","block_type":"box","text":"investment management and advisory services to numerous clients in addition to the Funds, and BlackRock may,","page_number":73,"box":{"x":116,"y":590,"width":766,"height":13}},{"id":"1347dce6-26aa-46a8-8f6a-eba87aeba87b","block_type":"box","text":"consistent with applicable law, make investment recommendations to other clients or accounts (including","page_number":73,"box":{"x":116,"y":606,"width":713,"height":13}},{"id":"a5982058-04ef-4ed7-b9e2-6d6d9c6bccaf","block_type":"box","text":"accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which a portfolio","page_number":73,"box":{"x":116,"y":621,"width":750,"height":13}},{"id":"c90a9835-ccdf-43f7-a9df-c25665c82f23","block_type":"box","text":"manager has have a personal interest in the receipt of such fees), which may be the same as or different from","page_number":73,"box":{"x":116,"y":637,"width":733,"height":13}},{"id":"13dad57c-4643-4313-bc07-ee129904aa4a","block_type":"box","text":"those made to the Funds. In addition, BlackRock, its affiliates and significant shareholders and any officer,","page_number":73,"box":{"x":116,"y":652,"width":720,"height":13}},{"id":"a37f75f4-5f8f-4968-b21c-7088f3ce0662","block_type":"box","text":"director, shareholder or employee may or may not have an interest in the securities whose purchase and sale","page_number":73,"box":{"x":116,"y":668,"width":732,"height":13}},{"id":"c35e0989-7b25-4ca2-90a2-21dad16ba50f","block_type":"box","text":"BlackRock recommends to the Funds. BlackRock, or any of its affiliates or significant shareholders, or any","page_number":73,"box":{"x":116,"y":683,"width":722,"height":13}},{"id":"9f6f31a4-acbb-4b71-bd66-83ccad0775de","block_type":"box","text":"officer, director, shareholder, employee or any member of their families may take different actions than those","page_number":73,"box":{"x":116,"y":699,"width":738,"height":13}},{"id":"8d1b49b0-f86c-4491-9365-f9bc02f1d9ad","block_type":"box","text":"recommended to the Funds by BlackRock with respect to the same securities. Moreover, BlackRock may refrain","page_number":73,"box":{"x":116,"y":714,"width":760,"height":13}},{"id":"80ab2cc4-0fae-4246-91a6-ff6adaa4c92d","block_type":"box","text":"from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its","page_number":73,"box":{"x":116,"y":730,"width":735,"height":13}},{"id":"b5f275ca-0d5a-40cf-becb-eeea43d27a32","block_type":"box","text":"affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to","page_number":73,"box":{"x":116,"y":745,"width":765,"height":13}},{"id":"1547b0d7-c162-450b-9292-9ae6c204fb3f","block_type":"box","text":"which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any","page_number":73,"box":{"x":116,"y":761,"width":766,"height":13}},{"id":"b2076f97-a60c-47e2-bc5a-2eb39af1ed48","block_type":"box","text":"of them has any substantial economic interest or possesses","page_number":73,"box":{"x":116,"y":776,"width":394,"height":13}},{"id":"2c663ddf-54ab-4927-88d2-c0d86a496c3e","block_type":"box","text":"material non-public information. Certain portfolio","page_number":73,"box":{"x":514,"y":776,"width":343,"height":13}},{"id":"9fc82a0b-0afd-4df1-a889-099edbd8ab9b","block_type":"box","text":"managers also may manage accounts whose investment strategies may at times be opposed to the strategy","page_number":73,"box":{"x":116,"y":792,"width":716,"height":13}},{"id":"9f0642e6-00fc-4494-a10b-6e15698ef9fa","block_type":"box","text":"utilized for a fund. It should also be noted that Messrs. Cooke, Koesterich, Mathieson, Menge, Rieder, Savi and","page_number":73,"box":{"x":116,"y":807,"width":757,"height":13}},{"id":"facd5d73-1be3-4121-a133-c37d00fa9aba","block_type":"box","text":"Andrews and Mses. Treharne and Greenen may be managing hedge fund and/or long only accounts, or may be","page_number":73,"box":{"x":116,"y":823,"width":754,"height":13}},{"id":"e56175b3-e633-4278-8c65-b20365f640bc","block_type":"box","text":"part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Messrs. Cooke,","page_number":73,"box":{"x":116,"y":838,"width":708,"height":13}},{"id":"6c092553-4ba9-4dfe-b4fe-953baee5979d","block_type":"box","text":"Koesterich, Mathieson, Menge, Rieder, Savi and Andrews and Mses. Treharne and Greenen may therefore be","page_number":73,"box":{"x":116,"y":854,"width":743,"height":13}},{"id":"2d9033e7-d4db-4b1f-8b3c-80db387223a9","block_type":"box","text":"entitled to receive a portion of any incentive fees earned on such accounts.","page_number":73,"box":{"x":116,"y":869,"width":500,"height":13}},{"id":"1ca3d070-809c-4bf5-a4c4-72ed6f6892d2","block_type":"box","text":"I-48","page_number":73,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"f38263fd-2ec4-4648-ab4b-c89e0b204bf4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":73,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b4c67d38-2eec-4a7f-ac94-ca94f4f2c964","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When","page_number":74,"box":{"x":116,"y":79,"width":700,"height":13}},{"id":"783d33a5-02ad-46da-be64-4f2d090788be","block_type":"box","text":"BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner","page_number":74,"box":{"x":116,"y":94,"width":748,"height":13}},{"id":"10ac248f-1b99-4246-8433-7ab5390731d0","block_type":"box","text":"consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner","page_number":74,"box":{"x":116,"y":110,"width":762,"height":13}},{"id":"75d9e823-e54e-43a1-a6d2-e62f1667b43c","block_type":"box","text":"among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted","page_number":74,"box":{"x":116,"y":125,"width":758,"height":13}},{"id":"1d469674-c3e3-4787-8a9c-aaa40aa56034","block_type":"box","text":"policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with","page_number":74,"box":{"x":116,"y":141,"width":741,"height":13}},{"id":"3bb95f37-df0a-4388-b19b-469e44860ff2","block_type":"box","text":"sufficient flexibility to allocate investments in a manner that is consistent with the particular investment","page_number":74,"box":{"x":116,"y":156,"width":717,"height":13}},{"id":"824f29c6-1824-4ceb-a6d1-ae131bc22062","block_type":"box","text":"discipline and client base, as appropriate.","page_number":74,"box":{"x":116,"y":172,"width":284,"height":13}},{"id":"bb2e52b9-7b89-40c2-8a10-f46383404369","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":74,"box":{"x":136,"y":197,"width":429,"height":13}},{"id":"740324a9-cc87-42d6-84a6-489811f835e8","block_type":"box","text":"BNY Mellon, which has its principal place of business at 118 Flanders Road, Westborough, MA 01581,","page_number":74,"box":{"x":116,"y":220,"width":724,"height":13}},{"id":"b203349c-0c64-4fb2-84c3-30b78015632f","block_type":"box","text":"serves as the transfer and dividend disbursement agent for the Fund.","page_number":74,"box":{"x":116,"y":236,"width":471,"height":13}},{"id":"8a40a9f9-e999-4c28-8e46-d8dd91d9c81e","block_type":"box","text":"Accounting Services","page_number":74,"box":{"x":136,"y":261,"width":144,"height":13}},{"id":"0e6fbf3f-198c-4ed7-a8bb-5e9dc2ff3e45","block_type":"box","text":"The Company has entered into an agreement with JPMorgan Chase Bank, N.A. (“JPM”) pursuant to which","page_number":74,"box":{"x":116,"y":284,"width":751,"height":13}},{"id":"d219ebda-0e83-4dfd-99d7-d5cc4aad2a4f","block_type":"box","text":"JPM provides certain accounting services to the Funds. The Manager provides certain accounting services to","page_number":74,"box":{"x":115,"y":300,"width":751,"height":13}},{"id":"4efe5f77-42b9-4126-995d-d265cdfcc428","block_type":"box","text":"each Fund and each Fund reimburses the Manager for such services.","page_number":74,"box":{"x":116,"y":315,"width":472,"height":13}},{"id":"ca312fa4-dc0f-443f-9bac-8ea3a0f50c2e","block_type":"box","text":"The table below shows the amount paid by the Company to JPM and the Manager for accounting services for","page_number":74,"box":{"x":116,"y":337,"width":765,"height":12}},{"id":"ba815f41-70f1-41f4-9066-4f8c3a6f9e4c","block_type":"box","text":"the periods indicated:","page_number":74,"box":{"x":116,"y":352,"width":148,"height":13}},{"id":"1599aa7a-904e-492d-894d-fb94e9022966","block_type":"box","text":"Fees Paid to JPM","page_number":74,"box":{"x":514,"y":376,"width":99,"height":10}},{"id":"28820417-05cd-4928-ad66-1205dd9037c3","block_type":"box","text":"For the Year Ended December 31,","page_number":74,"box":{"x":465,"y":386,"width":197,"height":10}},{"id":"0539a4a4-7651-4aea-8457-1e6b9418d9c5","block_type":"box","text":"Fees Paid to the Manager","page_number":74,"box":{"x":709,"y":376,"width":147,"height":10}},{"id":"6c629497-6f25-4c2d-b898-212424af10df","block_type":"box","text":"For the Year Ended December 31,","page_number":74,"box":{"x":684,"y":386,"width":197,"height":10}},{"id":"bbe6d7ce-ad5a-4f6e-9b81-36f44e0231cf","block_type":"box","text":"2025","page_number":74,"box":{"x":476,"y":401,"width":28,"height":8}},{"id":"922ff311-1804-4599-8c68-a6d01b355efb","block_type":"box","text":"2024","page_number":74,"box":{"x":549,"y":401,"width":29,"height":8}},{"id":"a9cf58ce-4d27-4249-af1f-20a3bdfdfbd1","block_type":"box","text":"2023","page_number":74,"box":{"x":622,"y":401,"width":28,"height":8}},{"id":"4c32e54e-ba63-4278-8335-0de51fefbf82","block_type":"box","text":"2025","page_number":74,"box":{"x":695,"y":401,"width":28,"height":8}},{"id":"9f8d40f3-729d-4c4c-83da-82983992ba2e","block_type":"box","text":"2024","page_number":74,"box":{"x":768,"y":401,"width":28,"height":8}},{"id":"4782dc72-699b-4e0c-9b2a-a0a6d00c77d1","block_type":"box","text":"2023","page_number":74,"box":{"x":841,"y":401,"width":28,"height":8}},{"id":"dd39bfdc-584c-42f2-8083-8538938d2d09","block_type":"box","text":"BlackRock 60/40 Target Allocation ETF V.I. Fund $64,269 $58,903 $65,827 $0 $0 $0","page_number":74,"box":{"x":116,"y":419,"width":746,"height":10}},{"id":"700afcd5-b5fa-4b1e-9578-1d2844f13e2b","block_type":"box","text":"BlackRock Advantage Large Cap Core V.I. Fund $36,888 $43,382 $55,763 $0 $0 $0","page_number":74,"box":{"x":116,"y":434,"width":746,"height":10}},{"id":"339a7f0e-c3c2-409e-91eb-9eb022689982","block_type":"box","text":"BlackRock Advantage Large Cap Value V.I. Fund $32,562 $38,488 $52,173 $0 $0 $0","page_number":74,"box":{"x":116,"y":448,"width":746,"height":11}},{"id":"4a836a74-5dcc-4747-8e1a-a07f3d913bd9","block_type":"box","text":"BlackRock Advantage SMID Cap V.I. Fund $35,164 $41,119 $54,535 $0 $0 $0","page_number":74,"box":{"x":116,"y":463,"width":746,"height":11}},{"id":"d5d0d447-41a3-43fc-98a7-18f8cbdb32ce","block_type":"box","text":"BlackRock Basic Value V.I. Fund $42,487 $48,987 $62,265 $0 $0 $0","page_number":74,"box":{"x":116,"y":478,"width":746,"height":10}},{"id":"c1d24706-eb67-49e1-a761-5afee393cda1","block_type":"box","text":"BlackRock Capital Appreciation V.I. Fund $35,244 $40,499 $54,261 $0 $0 $0","page_number":74,"box":{"x":116,"y":493,"width":746,"height":10}},{"id":"13f3587a-b6f9-43c0-92fb-d2d2007898b5","block_type":"box","text":"BlackRock Equity Dividend V.I. Fund $42,411 $48,613 $61,275 $0 $0 $0","page_number":74,"box":{"x":116,"y":507,"width":746,"height":11}},{"id":"759c0a68-1950-400b-8cc5-2c834cabfc92","block_type":"box","text":"BlackRock Global Allocation V.I. Fund $436,448 $428,658 $377,142 $0 $0 $0","page_number":74,"box":{"x":116,"y":522,"width":746,"height":10}},{"id":"6d956286-57ab-476d-b562-d329ae22934c","block_type":"box","text":"BlackRock Government Money Market V.I. Fund $20,729 $24,939 $41,898 $0 $0 $0","page_number":74,"box":{"x":116,"y":537,"width":746,"height":10}},{"id":"7c6bd0ab-5db3-459a-a460-5bf513b8060c","block_type":"box","text":"BlackRock International Index V.I. Fund $39,609 $43,630 $55,632 $0 $0 $0","page_number":74,"box":{"x":116,"y":551,"width":746,"height":11}},{"id":"c64a280c-1cb3-42c8-82e6-3656837c87c1","block_type":"box","text":"BlackRock International V.I. Fund $31,970 $36,165 $50,135 $0 $0 $0","page_number":74,"box":{"x":116,"y":566,"width":746,"height":10}},{"id":"9092a877-4339-4ca4-89b9-cd7eea1c0fdc","block_type":"box","text":"BlackRock Large Cap Focus Growth V.I. Fund $38,356 $49,857 $55,946 $0 $0 $0","page_number":74,"box":{"x":116,"y":581,"width":746,"height":10}},{"id":"d68e904e-cc39-4d38-a910-52e8ee7fd38c","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund $135,692 $103,996 $213,152 $0 $0 $0","page_number":74,"box":{"x":116,"y":596,"width":746,"height":10}},{"id":"546a2700-d807-485b-8b6c-4a6b4bdb544b","block_type":"box","text":"BlackRock S&P 500 Index V.I. Fund $171,326 $169,188 $142,572 $0 $0 $0","page_number":74,"box":{"x":116,"y":610,"width":746,"height":10}},{"id":"af018df8-1c7d-47a5-9c69-ab49461a49e3","block_type":"box","text":"BlackRock Small Cap Index V.I. Fund $44,377 $48,731 $59,860 $0 $0 $0","page_number":74,"box":{"x":116,"y":625,"width":746,"height":11}},{"id":"3ee5d232-8cad-4df8-817c-7855da8a29eb","block_type":"box","text":"Organization and Management of Wholly-Owned Subsidiary","page_number":74,"box":{"x":137,"y":649,"width":444,"height":12}},{"id":"499e1edf-cfc6-4eca-9555-a6f09e2cd1ac","block_type":"box","text":"BlackRock Global Allocation V.I. Fund intends to gain exposure to commodity markets by investing up to","page_number":74,"box":{"x":116,"y":672,"width":739,"height":13}},{"id":"32e0893e-eb3a-492b-a67c-56fad144ed93","block_type":"box","text":"25% of its total assets in the Global Allocation Subsidiary. The Global Allocation Subsidiary invests primarily","page_number":74,"box":{"x":116,"y":687,"width":764,"height":13}},{"id":"6c9df0ca-40b0-4cfd-87a9-6cdcb8da5b25","block_type":"box","text":"in commodity-related instruments.","page_number":74,"box":{"x":116,"y":703,"width":239,"height":13}},{"id":"a279c5ec-8be8-4c9e-aae6-0fb1bfbf5944","block_type":"box","text":"The Subsidiary is a company organized under the laws of the Cayman Islands, whose registered office is","page_number":74,"box":{"x":116,"y":724,"width":720,"height":13}},{"id":"abe2b61e-9a38-4c12-a1f9-fc280278c93f","block_type":"box","text":"located at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman","page_number":74,"box":{"x":116,"y":740,"width":739,"height":12}},{"id":"da8f2bf4-ae2c-4604-85c9-1211265482a2","block_type":"box","text":"KYI-1104, Cayman Islands. The Subsidiary’s affairs are overseen by a board of directors, which is comprised","page_number":74,"box":{"x":116,"y":755,"width":757,"height":13}},{"id":"d5141be9-62ae-44e3-8ee0-75976ca7b4a8","block_type":"box","text":"of John M. Perlowski and Trent Walker, each a member of the Company’s Board of Directors.","page_number":74,"box":{"x":116,"y":771,"width":658,"height":12}},{"id":"a5a86379-3d6b-48be-937c-6a6656afacc7","block_type":"box","text":"The Manager provides investment management and administrative services to the Subsidiary. The Manager","page_number":74,"box":{"x":116,"y":792,"width":746,"height":13}},{"id":"2ac880fa-4204-4850-8e1f-dc07840ba926","block_type":"box","text":"does not receive separate compensation from the Subsidiary for providing it with investment advisory or","page_number":74,"box":{"x":116,"y":807,"width":723,"height":13}},{"id":"7f4bd1c0-531b-4a3b-abf9-4ff6b4c62c94","block_type":"box","text":"administrative services. However, BlackRock Global Allocation V.I. Fund pays the Manager based on the","page_number":74,"box":{"x":116,"y":823,"width":733,"height":13}},{"id":"2d7ad0a3-f6e7-41ca-87d3-5d55dc0e5525","block_type":"box","text":"Fund’s assets, including the assets invested in the Subsidiary. The Subsidiary entered into contracts for the","page_number":74,"box":{"x":116,"y":838,"width":732,"height":13}},{"id":"6b67bc46-7af4-47f0-ba21-29549f5b5cb3","block_type":"box","text":"provision of advisory, custody, and audit services with the same service providers that provide those services","page_number":74,"box":{"x":116,"y":854,"width":750,"height":13}},{"id":"99b419e5-9404-4dd3-89dd-d2b6355ecff1","block_type":"box","text":"to BlackRock Global Allocation V.I. Fund.","page_number":74,"box":{"x":116,"y":869,"width":297,"height":11}},{"id":"cc7737bf-ad8c-426e-8b7c-03db0f9a3f64","block_type":"box","text":"I-49","page_number":74,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"2ce01228-77e8-4576-bec7-9ebc27bb4477","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":74,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b0dac6ca-c970-4868-9237-f9b1f4c172a9","block_type":"box","text":"The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material","page_number":75,"box":{"x":116,"y":79,"width":749,"height":13}},{"id":"a5307eee-f1b9-4dae-9d30-877dac4796cc","block_type":"box","text":"respects, as the policies and procedures adopted by the Company. As a result, the Manager, in managing the","page_number":75,"box":{"x":116,"y":94,"width":751,"height":13}},{"id":"5949a1e5-9274-4bd2-b0c5-6d3ff9d82957","block_type":"box","text":"Subsidiary’s portfolio, is subject to the same investment policies and restrictions that apply to the management","page_number":75,"box":{"x":116,"y":110,"width":765,"height":13}},{"id":"ca2a1f1c-6da9-4b61-bb76-08a8778dbde1","block_type":"box","text":"of BlackRock Global Allocation V.I. Fund, and, in particular, to the requirements relating to portfolio","page_number":75,"box":{"x":116,"y":125,"width":708,"height":13}},{"id":"9e256bc1-b2a9-4191-bd80-2104d25da6d3","block_type":"box","text":"leverage, liquidity, brokerage, and the timing and method of the valuation of a Subsidiary’s portfolio","page_number":75,"box":{"x":116,"y":141,"width":698,"height":13}},{"id":"f03e4580-87d5-442e-bf5f-b9bc43a2f27d","block_type":"box","text":"investments and shares of the Subsidiary. These policies and restrictions are described elsewhere in detail in","page_number":75,"box":{"x":116,"y":156,"width":742,"height":13}},{"id":"c3c5ea5e-9419-44b4-990c-75fdd721d8e2","block_type":"box","text":"this SAI. BlackRock Global Allocation V.I. Fund an","page_number":75,"box":{"x":116,"y":172,"width":359,"height":10}},{"id":"9f6353ee-a1cf-4c10-ae11-f6d7a9dcd241","block_type":"box","text":"d the Subsidiary test for compliance with certain","page_number":75,"box":{"x":476,"y":172,"width":335,"height":13}},{"id":"764eec5f-98f2-4e77-8de3-151c3abaff12","block_type":"box","text":"investment restrictions on a consolidated basis.","page_number":75,"box":{"x":116,"y":187,"width":325,"height":10}},{"id":"c0b11edc-89f5-4bbe-947e-d85a32d08fda","block_type":"box","text":"V. Information on Distribution Related Expenses","page_number":75,"box":{"x":116,"y":216,"width":403,"height":13}},{"id":"8a744341-4371-489b-aaa0-c165150777a2","block_type":"box","text":"12b-1 Distribution Plans.","page_number":75,"box":{"x":117,"y":242,"width":175,"height":10}},{"id":"b3546c6f-952b-41ec-a33d-b847d3b4c006","block_type":"box","text":"The Funds have adopted Distribution Plans (collectively, the “Plan”) with regard to","page_number":75,"box":{"x":298,"y":242,"width":580,"height":12}},{"id":"832acebf-9efc-41ab-9fc1-58b39a6561e3","block_type":"box","text":"the Class II and Class III shares of the Fund, pursuant to Rule 12b-1 under the Investment Company Act. The","page_number":75,"box":{"x":116,"y":257,"width":761,"height":13}},{"id":"6c442f20-b31c-4e26-845d-66ebc72b5708","block_type":"box","text":"Plan permits the Company, on behalf of each Fund, to pay to each Insurance Company or a broker-dealer","page_number":75,"box":{"x":116,"y":273,"width":736,"height":12}},{"id":"7ce746d5-b43f-4d11-8496-bfabc4c0beaf","block_type":"box","text":"affiliate thereof (“Insurance Company Affiliate”) that en","page_number":75,"box":{"x":116,"y":288,"width":392,"height":13}},{"id":"4f9626e4-6efa-40fb-9636-b3ef3e59129a","block_type":"box","text":"ters into an agreement with the Company to provide","page_number":75,"box":{"x":508,"y":288,"width":365,"height":13}},{"id":"05d0608c-cbe0-4335-bac8-690107992bac","block_type":"box","text":"distribution-related and/or shareholder services to","page_number":75,"box":{"x":116,"y":304,"width":345,"height":10}},{"id":"3ba89fa4-673f-444b-850e-d2436901a6a9","block_type":"box","text":"Contract owners, a fee, at the end of each month, of up to","page_number":75,"box":{"x":466,"y":304,"width":403,"height":12}},{"id":"701c5998-9f22-492b-850d-2799a6c89001","block_type":"box","text":"0.15% of the average daily net asset value of the Class II Shares of the Fund held by such Insurance Company,","page_number":75,"box":{"x":117,"y":319,"width":765,"height":13}},{"id":"83a02f71-9fc7-4ac2-b4a1-2937894a2a97","block_type":"box","text":"and up to 0.25% of the average daily net asset value of the Class III Shares of the Fund held by such Insurance","page_number":75,"box":{"x":116,"y":335,"width":766,"height":12}},{"id":"2600f5cf-7cec-4c78-a17f-2b122555cc0f","block_type":"box","text":"Company. Such services include, but are not limited to, (a) the printing and mailing of Fund prospectuses,","page_number":75,"box":{"x":117,"y":350,"width":732,"height":13}},{"id":"2998e854-590f-449e-8e2e-a9b6b7dd9043","block_type":"box","text":"statements of additional information, any supplements thereto and shareholder reports for existing and","page_number":75,"box":{"x":116,"y":366,"width":715,"height":12}},{"id":"79b7f3ba-97a4-4f02-ace8-08ce7eba6363","block_type":"box","text":"prospective Contract owners, (b) services relating to the development, preparation, printing and mailing of","page_number":75,"box":{"x":116,"y":381,"width":740,"height":13}},{"id":"10707183-11a3-46c1-81fa-551b1d928a16","block_type":"box","text":"Company advertisements, sales literature and other promotional materials describing and/or relating to the","page_number":75,"box":{"x":117,"y":397,"width":740,"height":12}},{"id":"fa66f932-412a-4022-bebd-a1ecd31dc6c9","block_type":"box","text":"Fund and including materials intended for use within th","page_number":75,"box":{"x":116,"y":412,"width":387,"height":13}},{"id":"e9866dd6-6cc7-4fed-8167-8800188ecb87","block_type":"box","text":"e Insurance Company, or for broker-dealer only use or","page_number":75,"box":{"x":503,"y":412,"width":380,"height":13}},{"id":"9fc817b7-bb3b-4796-a968-722910408499","block_type":"box","text":"retail use, (c) holding seminars and sales meetings desi","page_number":75,"box":{"x":116,"y":428,"width":374,"height":12}},{"id":"d6aa735c-e7c5-4e22-9f44-37362f7cdcae","block_type":"box","text":"gned to promote the distribution of the Class II and/or","page_number":75,"box":{"x":491,"y":428,"width":377,"height":12}},{"id":"95aa6e17-58c8-4553-8588-94fb5447f1d8","block_type":"box","text":"Class III Shares of the Fund, (d) obtaining information and providing explanations to Contract owners","page_number":75,"box":{"x":117,"y":443,"width":711,"height":13}},{"id":"90314e43-29fb-4f3e-9dc1-0eb52db31cc7","block_type":"box","text":"regarding the investment objectives and policies and other information about the Company and the Fund,","page_number":75,"box":{"x":116,"y":459,"width":733,"height":12}},{"id":"d0e524b5-c7ae-4a5b-88ef-8e97ea366287","block_type":"box","text":"including the performance of the Fund, (e) training sales personnel regarding the Company and the Fund,","page_number":75,"box":{"x":116,"y":474,"width":731,"height":13}},{"id":"da43efed-48ee-41f8-adf9-425da87aefad","block_type":"box","text":"(f) compensating sales personnel in connection with th","page_number":75,"box":{"x":117,"y":490,"width":376,"height":12}},{"id":"5120c7c3-e65f-4250-8cc4-0784c41906c1","block_type":"box","text":"e allocation of cash values and premiums of the","page_number":75,"box":{"x":493,"y":490,"width":329,"height":12}},{"id":"04581fef-6e98-4f2d-ab8c-5cffbea4a1ee","block_type":"box","text":"Contract owners to the Company, (g) providing personal services and/or maintenance of the accounts of the","page_number":75,"box":{"x":117,"y":505,"width":749,"height":13}},{"id":"d318a567-6897-44aa-8ebb-b3e16319491e","block_type":"box","text":"Contract owners with respect to Class II and Class III Shares of the Fund attributable to such accounts, and","page_number":75,"box":{"x":117,"y":521,"width":744,"height":12}},{"id":"f119ff19-e774-43fb-a7ca-42f9e1d7e2a2","block_type":"box","text":"(h) financing any other activity that the Company’s","page_number":75,"box":{"x":117,"y":536,"width":354,"height":13}},{"id":"7a1a906e-6f2d-4765-9b18-e5656ea78940","block_type":"box","text":"Board of Directors determines is primarily intended to","page_number":75,"box":{"x":476,"y":536,"width":376,"height":13}},{"id":"acaec6bb-a2af-407a-a11c-540d64a2ff9f","block_type":"box","text":"result in the sale of Class II and Class III Shares. BlackRock Investments, LLC (“BRIL” or the “Distributor”),","page_number":75,"box":{"x":116,"y":552,"width":758,"height":12}},{"id":"2dc664fa-564e-41f0-93f0-3466036b12ca","block_type":"box","text":"an affiliate of the Manager, acts as the Fund’s sole distributor. 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Such shares will be sold at their","page_number":76,"box":{"x":117,"y":238,"width":374,"height":13}},{"id":"727d0022-fbf2-4b45-9976-252fb62a18e6","block_type":"box","text":"respective net asset values and therefore will involve no","page_number":76,"box":{"x":496,"y":238,"width":382,"height":13}},{"id":"0e07f858-cc04-4e44-8104-2b504a7a9af8","block_type":"box","text":"sales charge. BRIL is an affiliate of the Manager.","page_number":76,"box":{"x":116,"y":254,"width":336,"height":13}},{"id":"ffccc494-f469-438a-9712-ff6d01ec51c0","block_type":"box","text":"The Distribution Agreement is subject to the same renew","page_number":76,"box":{"x":116,"y":278,"width":394,"height":13}},{"id":"57ed65f3-dc92-4c01-9d25-e809a587b517","block_type":"box","text":"al requirements and termination provisions as the","page_number":76,"box":{"x":511,"y":278,"width":343,"height":13}},{"id":"e11b80ff-a4d4-4e12-90bf-34d1fdea1073","block_type":"box","text":"Management Agreement described above.","page_number":76,"box":{"x":116,"y":293,"width":290,"height":13}},{"id":"d35606a0-791d-4102-97d2-7674f7865557","block_type":"box","text":"The Manager, the Distributor and their affiliates may make payments relating to distribution and sales","page_number":76,"box":{"x":116,"y":317,"width":712,"height":13}},{"id":"71030524-25e0-42b0-9a57-77c291c2cdf0","block_type":"box","text":"support activities out of their past profits or other sources available to them (and not as an additional charge","page_number":76,"box":{"x":116,"y":333,"width":753,"height":12}},{"id":"f4e30a37-9c6d-4a47-bf97-8c6ebdd34f19","block_type":"box","text":"to the Fund). 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These","page_number":76,"box":{"x":116,"y":395,"width":372,"height":12}},{"id":"51b2c89a-664c-48da-8804-dcf8238b4793","block_type":"box","text":"payments may be made to insurance companies or their","page_number":76,"box":{"x":493,"y":395,"width":386,"height":12}},{"id":"6e8751f7-806d-4a66-a83f-889647fcabe6","block_type":"box","text":"broker-dealer affiliates to pay for marketing support activities, training sales personnel regarding the Fund,","page_number":76,"box":{"x":116,"y":410,"width":740,"height":13}},{"id":"0524fa91-b1de-459e-aed8-2a85ae298996","block_type":"box","text":"compensating financial intermediaries and broker-","page_number":76,"box":{"x":116,"y":426,"width":349,"height":12}},{"id":"b6af1cbd-b878-4959-bc53-717eb2be0001","block_type":"box","text":"dealers to pay or reimburse them for their services or","page_number":76,"box":{"x":466,"y":426,"width":366,"height":12}},{"id":"5c64c908-67fc-40f0-bb30-5212bd5cc392","block_type":"box","text":"expenses in connection with the distribution of variabl","page_number":76,"box":{"x":116,"y":441,"width":377,"height":13}},{"id":"3c25c1b4-a24e-4ab0-a3b4-6ab61f1c4551","block_type":"box","text":"e annuity and variable life insurance contracts investing","page_number":76,"box":{"x":494,"y":441,"width":384,"height":13}},{"id":"64551079-fb83-452d-ba6f-a7f50697fe9a","block_type":"box","text":"in Fund shares, and compensating sales personnel in connection with the allocation of cash values and","page_number":76,"box":{"x":116,"y":457,"width":708,"height":12}},{"id":"18630dff-d7d3-43f9-8224-d08c55a37e72","block_type":"box","text":"premium of variable annuity and variable life insurance contracts to investments in Fund shares. The","page_number":76,"box":{"x":116,"y":472,"width":698,"height":13}},{"id":"2ecac867-f2c5-4645-a64d-18acca0132d5","block_type":"box","text":"payments made by the Manager, the Distributor and their affiliates are based on a percentage of the value of","page_number":76,"box":{"x":116,"y":488,"width":754,"height":12}},{"id":"7ec259fd-fcfc-439c-93fb-f2530ab053b6","block_type":"box","text":"shares sold to, or held by, customers of the insurance company involved, and may be different for different","page_number":76,"box":{"x":116,"y":503,"width":740,"height":13}},{"id":"d2881c39-12ab-4ef5-9e14-4a506b079a87","block_type":"box","text":"insurance companies. The payments described above are made from the Manager’s, the Distributor’s or their","page_number":76,"box":{"x":116,"y":519,"width":755,"height":13}},{"id":"c6a38b2a-0e0e-4d69-8e62-51d3860102d0","block_type":"box","text":"affiliates’ own assets pursuant to agreements with insuranc","page_number":76,"box":{"x":116,"y":534,"width":408,"height":13}},{"id":"b1fb22cd-bcd0-44bc-ac66-c7ee3654bbf9","block_type":"box","text":"e companies or their broker-dealer affiliates and do","page_number":76,"box":{"x":525,"y":534,"width":354,"height":13}},{"id":"82f32687-e869-4275-be26-343eb15eb615","block_type":"box","text":"not change the price paid by investors for the purchase of the Fund’s shares or the amount the Fund will","page_number":76,"box":{"x":116,"y":550,"width":722,"height":13}},{"id":"11aff3f1-c32d-48f0-8270-b2923cc71cdd","block_type":"box","text":"receive as proceeds from such sales.","page_number":76,"box":{"x":116,"y":565,"width":245,"height":13}},{"id":"d88e0e4d-8486-4eb9-9adb-bc3ce724f14f","block_type":"box","text":"The payments described above may be made, at the discretion of BRIL or BlackRock, to insurance companies","page_number":76,"box":{"x":116,"y":589,"width":761,"height":13}},{"id":"994391cf-28bb-48b9-891a-12f4449959be","block_type":"box","text":"or their broker-dealer affiliates in connection with the sale and distribution of Fund shares. Pursuant to","page_number":76,"box":{"x":116,"y":605,"width":714,"height":10}},{"id":"2b14160a-4119-4880-a0b1-6d6a2781ceec","block_type":"box","text":"applicable Financial Industry Regulatory Authority (“FINRA”) regulations, the details of certain of these","page_number":76,"box":{"x":116,"y":620,"width":728,"height":13}},{"id":"df298c36-ab56-4e5f-8782-44fa31595b96","block_type":"box","text":"payments, including the insurance companies or the","page_number":76,"box":{"x":116,"y":636,"width":359,"height":12}},{"id":"fc716c2b-fa49-45be-95df-aff8196d6c2b","block_type":"box","text":"ir broker-dealer affiliates receiving such payments in","page_number":76,"box":{"x":476,"y":636,"width":362,"height":12}},{"id":"831aa117-7482-4894-9345-7815caca9dbc","block_type":"box","text":"connection with the sale and distribution of Fund shares, are required to be disclosed.","page_number":76,"box":{"x":116,"y":651,"width":593,"height":13}},{"id":"5ad8585d-877b-4eb9-bc20-a1d9439484e9","block_type":"box","text":"As of the date of this SAI, as amended or supplemented fro","page_number":76,"box":{"x":116,"y":675,"width":409,"height":13}},{"id":"2fb38764-49e4-4eb9-90d9-721fb6ea059e","block_type":"box","text":"m time to time, the following insurance companies","page_number":76,"box":{"x":525,"y":675,"width":351,"height":13}},{"id":"dd240b76-6e25-4325-b509-11a190f105f2","block_type":"box","text":"(or broker-dealer affiliates thereof) are receiving such p","page_number":76,"box":{"x":117,"y":690,"width":380,"height":13}},{"id":"4eb26f18-1163-4bcb-9d2c-4b7d92e39d0c","block_type":"box","text":"ayments: Allianz Life Financial Services LLC, Equitable","page_number":76,"box":{"x":498,"y":690,"width":383,"height":13}},{"id":"6718d5ce-7643-45f9-af9c-009cc75047de","block_type":"box","text":"Financial Life Insurance Company, Massachusetts Mu","page_number":76,"box":{"x":116,"y":706,"width":378,"height":13}},{"id":"5c150fc8-74e2-4168-bd51-2971139835c2","block_type":"box","text":"tual Life Insurance Company, Nationwide Financial","page_number":76,"box":{"x":494,"y":706,"width":361,"height":13}},{"id":"2a89fe7d-c0cf-4f78-ae9d-39a596570b04","block_type":"box","text":"Services, Inc., Nationwide Fund Distributors, LLC, New York Life Insurance and Annuity Corporation,","page_number":76,"box":{"x":116,"y":721,"width":722,"height":13}},{"id":"b88825c9-9e48-46a5-93f0-81e65d09c3e3","block_type":"box","text":"Pacific Select Distributors, Inc., Prudential Annuities Distributors, Inc., RiverSource Distributors, Inc.,","page_number":76,"box":{"x":116,"y":737,"width":705,"height":12}},{"id":"2613a027-a843-4dad-b76e-1c6f2276b53a","block_type":"box","text":"Transamerica Life Insurance Company and Transamerica Financial Life Insurance Company. In lieu of","page_number":76,"box":{"x":116,"y":752,"width":715,"height":13}},{"id":"44b6098b-cd56-4259-8e6e-9382b9027dac","block_type":"box","text":"payments pursuant to the foregoing, the Manager, the","page_number":76,"box":{"x":116,"y":768,"width":375,"height":13}},{"id":"a95f7d31-efa4-4424-8903-97be648d980f","block_type":"box","text":"Distributor or their affiliates may make payments to","page_number":76,"box":{"x":496,"y":768,"width":362,"height":13}},{"id":"e34c2307-861b-4459-a58d-50139fad73cf","block_type":"box","text":"insurance companies or their broker-dealer affiliates of an agreed-upon amount that will not exceed the","page_number":76,"box":{"x":116,"y":783,"width":718,"height":13}},{"id":"72d1ee9a-8088-4696-9498-d854ce9f644d","block_type":"box","text":"amount that would have been payable pursuant to the above, and may also make similar payments to other","page_number":76,"box":{"x":116,"y":799,"width":748,"height":13}},{"id":"8dbd4bf9-4ed0-4609-a055-4eee6ec6c672","block_type":"box","text":"insurance companies or their broker-dealer affiliates.","page_number":76,"box":{"x":116,"y":814,"width":365,"height":13}},{"id":"77863c44-ba85-4de1-bff3-a70094d9fbe8","block_type":"box","text":"If investment advisers, distributors or affiliates of mutual funds pay bonuses and incentives in differing","page_number":76,"box":{"x":116,"y":838,"width":710,"height":13}},{"id":"53949a69-a70f-45a9-945d-c491353ad964","block_type":"box","text":"amounts, financial firms and their financial consultants may have financial incentives for recommending a","page_number":76,"box":{"x":116,"y":854,"width":735,"height":13}},{"id":"ffce2780-67b3-4960-a22d-02f42352ef45","block_type":"box","text":"particular mutual fund over other mutual funds. In addition, depending on the arrangements in place at any","page_number":76,"box":{"x":116,"y":869,"width":749,"height":13}},{"id":"d3327fa1-e5fe-4507-96a8-996199d31abd","block_type":"box","text":"I-51","page_number":76,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"24a484de-e8e2-40a3-9e04-cdd69a1b8433","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":76,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3272d127-c295-4d69-b25a-77b1eb953586","block_type":"box","text":"particular time, a financial firm and its financial c","page_number":77,"box":{"x":116,"y":79,"width":344,"height":13}},{"id":"57ea655f-8d83-4168-819b-4ee5067ae852","block_type":"box","text":"onsultants may also have a financial incentive for","page_number":77,"box":{"x":460,"y":79,"width":342,"height":13}},{"id":"f5951cd2-1ec1-4a9a-9949-f3e2b8f75242","block_type":"box","text":"recommending a particular share class over other share classes. Furthermore, the Manager, the Distributor","page_number":77,"box":{"x":116,"y":94,"width":739,"height":13}},{"id":"3d6b9276-cf1f-4dd3-aa31-24c16dbce368","block_type":"box","text":"and their affiliates may contribute to various non-cash and cash incentive arrangements to promote the sale of","page_number":77,"box":{"x":116,"y":110,"width":765,"height":13}},{"id":"817ac2bb-148a-4beb-9f5d-555cf35e36da","block_type":"box","text":"shares, and may sponsor various contests and promoti","page_number":77,"box":{"x":116,"y":125,"width":377,"height":13}},{"id":"7e0183c9-130a-4b2d-a865-850e72533e18","block_type":"box","text":"ons subject to applicable FINRA regulations in which","page_number":77,"box":{"x":494,"y":125,"width":371,"height":13}},{"id":"50f3d6ba-2450-469c-8c1c-d924a5045662","block_type":"box","text":"participants may receive prizes such as travel awards, merchandise and cash. Subject to applicable FINRA","page_number":77,"box":{"x":116,"y":141,"width":735,"height":13}},{"id":"47036053-7709-4126-8413-a614c081471b","block_type":"box","text":"regulations, the Manager, the Distributor and their affiliates may also (i) pay for the travel expenses, meals,","page_number":77,"box":{"x":116,"y":156,"width":743,"height":13}},{"id":"e9cc1df8-a02b-4fe8-ac9d-b1eb8408a603","block_type":"box","text":"lodging and entertainment of broker/dealers, financi","page_number":77,"box":{"x":116,"y":172,"width":361,"height":13}},{"id":"37a86e19-e051-4866-b1e3-58258b495e75","block_type":"box","text":"al institutions and their salespersons in connection with","page_number":77,"box":{"x":478,"y":172,"width":384,"height":13}},{"id":"830c2142-ed62-4738-9afe-7c4542b18ce8","block_type":"box","text":"educational and sales promotional programs, (ii) sponsor speakers, educational seminars and charitable events","page_number":77,"box":{"x":116,"y":187,"width":765,"height":13}},{"id":"99bb0407-a4ab-480f-94fa-2c26f2ca5fab","block_type":"box","text":"and (iii) provide other sales and marketing conferences and other resources to broker/dealers, financial","page_number":77,"box":{"x":116,"y":203,"width":710,"height":13}},{"id":"30dab21c-4a5b-4b86-8ae1-f656ca00a228","block_type":"box","text":"institutions and their salespersons.","page_number":77,"box":{"x":116,"y":218,"width":237,"height":13}},{"id":"9a265182-0b39-4ad6-8aa4-a0c63060cf20","block_type":"box","text":"Insurance companies may charge their clients additional fees for account-related services. Insurance companies","page_number":77,"box":{"x":116,"y":240,"width":766,"height":13}},{"id":"17b00e02-e861-46a9-ba42-80090fd9a754","block_type":"box","text":"may charge their customers a service fee in connectio","page_number":77,"box":{"x":116,"y":256,"width":367,"height":12}},{"id":"c71e8cc9-339f-464d-96f7-8803798b2a70","block_type":"box","text":"n with the purchase or redemption of Fund shares. The","page_number":77,"box":{"x":483,"y":256,"width":383,"height":12}},{"id":"25bd9c51-9c20-40e6-90b2-65f3df193c9d","block_type":"box","text":"amount and applicability of such a fee is determined an","page_number":77,"box":{"x":116,"y":271,"width":384,"height":13}},{"id":"ae80cf48-32e5-4e57-a701-939b70a60d3e","block_type":"box","text":"d disclosed to its customers by each individual","page_number":77,"box":{"x":501,"y":271,"width":319,"height":13}},{"id":"962d16c7-2349-4e10-9784-a96e30f24a81","block_type":"box","text":"insurance company. Service fees typically are fixed, nominal dollar amounts and are in addition to the sales","page_number":77,"box":{"x":116,"y":287,"width":743,"height":12}},{"id":"0a299274-bc94-4dcc-ad29-575433001a45","block_type":"box","text":"and other charges described in the Fund’s Prospectus and this Statement of Additional Information.","page_number":77,"box":{"x":116,"y":302,"width":689,"height":13}},{"id":"cde05866-df4a-4129-80cd-f75a12e2c64a","block_type":"box","text":"Pursuant to the Plan, the Fund may enter into service a","page_number":77,"box":{"x":116,"y":324,"width":380,"height":13}},{"id":"1e7444b2-be8c-49a6-85cd-d316725bc9a6","block_type":"box","text":"rrangements with insurance companies pursuant to","page_number":77,"box":{"x":497,"y":324,"width":354,"height":13}},{"id":"5bb11302-6617-478c-9d44-0b0ef7206283","block_type":"box","text":"which insurance companies or their broker-dealer affiliates will render certain support services to the","page_number":77,"box":{"x":116,"y":339,"width":699,"height":13}},{"id":"9f138c46-359e-4660-93ed-42a0b37df2bb","block_type":"box","text":"insurance companies’ customers (“Customers”). Such","page_number":77,"box":{"x":116,"y":355,"width":372,"height":13}},{"id":"aae9ad83-685e-4d5b-91ad-021bcb8fe01e","block_type":"box","text":"services will be provided to Customers and are intended","page_number":77,"box":{"x":493,"y":355,"width":388,"height":13}},{"id":"63991f7a-c43b-4c0a-8674-1f03041965f4","block_type":"box","text":"to supplement the services provided by the Fund’s Manager, administrator and/or Transfer Agent to the","page_number":77,"box":{"x":116,"y":370,"width":720,"height":13}},{"id":"d7fa899c-36f6-4c5f-ab90-cd70243e3a82","block_type":"box","text":"insurance company. In consideration for payment of a service fee on shares, insurance companies or their","page_number":77,"box":{"x":116,"y":386,"width":730,"height":13}},{"id":"ca03b835-6185-4203-a86b-9505cc1c9d72","block_type":"box","text":"broker-dealer affiliates may provide general shareholder liaison services, including, but not limited to","page_number":77,"box":{"x":116,"y":401,"width":699,"height":13}},{"id":"ce9a3313-3284-4243-aa14-1f27899e80a7","block_type":"box","text":"(i) answering customer inquiries regarding account","page_number":77,"box":{"x":117,"y":417,"width":351,"height":13}},{"id":"19f524d8-bdbd-40ec-9cab-2d49a8541a5a","block_type":"box","text":"status and history, the manner in which purchases,","page_number":77,"box":{"x":473,"y":417,"width":351,"height":13}},{"id":"6957731c-769d-4ca1-86a9-c706653c62d3","block_type":"box","text":"exchanges and redemptions of shares may be effected an","page_number":77,"box":{"x":116,"y":432,"width":391,"height":13}},{"id":"27d8942e-e278-4b4d-94c5-45bab8178270","block_type":"box","text":"d certain other matters pertaining to the Customers’","page_number":77,"box":{"x":508,"y":432,"width":360,"height":13}},{"id":"cdeca31d-3afd-421c-808f-ce02042cab42","block_type":"box","text":"sub-accounts; and (ii) assisting Customers in design","page_number":77,"box":{"x":116,"y":448,"width":356,"height":13}},{"id":"65213724-d24e-49b4-96e4-41f4f5035d80","block_type":"box","text":"ating and changing account designations and addresses.","page_number":77,"box":{"x":473,"y":448,"width":384,"height":13}},{"id":"f62653d8-5f87-4dc6-bfd9-e954bda3d8ff","block_type":"box","text":"In addition to, rather than in lieu of, distribution fees that the Fund may pay to an insurance company or its","page_number":77,"box":{"x":116,"y":469,"width":748,"height":13}},{"id":"f3f2d174-d611-4175-894e-44fd170ee382","block_type":"box","text":"broker-dealer affiliate pursuant to the Plan and fees the Fund pays to its Transfer Agent, if approved by the","page_number":77,"box":{"x":116,"y":485,"width":742,"height":13}},{"id":"c2382a22-f020-40f0-92cf-59573163719f","block_type":"box","text":"Board, the Fund may enter into non-Plan agreements with insurance companies or their broker-dealer","page_number":77,"box":{"x":116,"y":500,"width":706,"height":13}},{"id":"2a47386e-a91f-43bd-9869-8358f5fb201f","block_type":"box","text":"affiliates pursuant to which the Fund will pay an insurance company or its broker-dealer affiliates for","page_number":77,"box":{"x":116,"y":516,"width":702,"height":13}},{"id":"9abf7352-d496-4b3a-81a1-6301d479d9fe","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency and shareholder services. These non-Plan","page_number":77,"box":{"x":116,"y":531,"width":728,"height":13}},{"id":"c4eff6d8-33a7-44c0-8479-f4c569a794e1","block_type":"box","text":"payments are based on a percentage of the average daily net assets of Fund shares held indirectly by","page_number":77,"box":{"x":116,"y":547,"width":690,"height":13}},{"id":"9eb6f5db-26e3-40df-a48d-fe0a16b48181","block_type":"box","text":"Customers of such insurance companies.","page_number":77,"box":{"x":117,"y":562,"width":280,"height":13}},{"id":"2a994ae4-b21b-4e18-addf-10a4bf8ed1d1","block_type":"box","text":"The aggregate amount of these payments may be substantial. From time to time, the Manager, the Distributor","page_number":77,"box":{"x":116,"y":584,"width":764,"height":13}},{"id":"f697d1cb-c43a-43e7-a4f7-794c192362be","block_type":"box","text":"or their affiliates also may pay a portion of the fees fo","page_number":77,"box":{"x":116,"y":600,"width":372,"height":13}},{"id":"02d28dd7-1d52-475c-afd1-2e265a61198f","block_type":"box","text":"r administrative, networking, recordkeeping,","page_number":77,"box":{"x":489,"y":600,"width":309,"height":13}},{"id":"eb054638-1f20-4c97-8ba2-02ad89980caa","block_type":"box","text":"sub-transfer agency and shareholder services described above at its or their own expense and out of its or their","page_number":77,"box":{"x":116,"y":615,"width":765,"height":13}},{"id":"63e287c1-aacc-4759-b6b4-35f0e8283179","block_type":"box","text":"legitimate profits.","page_number":77,"box":{"x":116,"y":631,"width":121,"height":13}},{"id":"8e91922a-cd26-49dc-ab0c-d3fd8ee35989","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":77,"box":{"x":116,"y":657,"width":364,"height":12}},{"id":"1e942073-1529-437f-bddc-fecae9b4bf15","block_type":"box","text":"The offering price for each Fund’s shares is equal to the","page_number":77,"box":{"x":116,"y":680,"width":384,"height":13}},{"id":"a7ea6f53-6abf-4d07-8662-5fdc56989b93","block_type":"box","text":"net asset value computed by dividing the value of the","page_number":77,"box":{"x":505,"y":680,"width":367,"height":13}},{"id":"700c34e6-c361-4ed0-8be3-637fe74006b5","block_type":"box","text":"Fund’s net assets by the number of shares outstanding. For more information on the purchasing and valuation","page_number":77,"box":{"x":116,"y":696,"width":764,"height":13}},{"id":"3c5885f9-a461-4c97-a996-07dc67d4bf91","block_type":"box","text":"of shares, please see “Purchase of Shares” and “Pricing of Shares” in Part II of this SAI. The Subsidiary is","page_number":77,"box":{"x":116,"y":711,"width":728,"height":13}},{"id":"88256d2b-f06f-4616-91d1-f2a19aae53d0","block_type":"box","text":"subject to the same valuation policies as BlackRock","page_number":77,"box":{"x":116,"y":727,"width":356,"height":13}},{"id":"fc0ed71d-7d98-4f51-ac02-57b7e9c1805e","block_type":"box","text":"Global Allocation V.I. Fund as described in “Pricing of","page_number":77,"box":{"x":478,"y":727,"width":381,"height":13}},{"id":"df19c6ab-f64c-49c0-8098-634bb09e047b","block_type":"box","text":"Shares” in Part II of this SAI. BlackRock Global Allocation V.I. Fund’s investment in the Subsidiary is valued","page_number":77,"box":{"x":116,"y":742,"width":756,"height":13}},{"id":"154285ce-40cd-4939-b936-8b7037001ab3","block_type":"box","text":"based on the value of the Subsidiary’s portfolio investments. The Subsidiary prices its portfolio investments","page_number":77,"box":{"x":116,"y":758,"width":741,"height":13}},{"id":"716141c9-5b4f-49f8-8ed1-ac4a1dc4954f","block_type":"box","text":"pursuant to the same pricing and valuation methodologies and procedures used by BlackRock Global","page_number":77,"box":{"x":116,"y":773,"width":704,"height":13}},{"id":"baf6768d-5f29-4c2d-87e1-4c71e37e3e32","block_type":"box","text":"Allocation V.I. Fund, which require, among other things, that the Subsidiary’s portfolio investments be","page_number":77,"box":{"x":116,"y":789,"width":713,"height":13}},{"id":"40265d58-bc64-47bf-9418-cbc9b73e9031","block_type":"box","text":"marked-to-market (that is, the value on the Subsidiary’s books changes) each business day to reflect changes in","page_number":77,"box":{"x":116,"y":804,"width":767,"height":13}},{"id":"6afc21a1-7816-40fb-b87f-e7e0013146eb","block_type":"box","text":"the market value of the investment.","page_number":77,"box":{"x":116,"y":820,"width":244,"height":10}},{"id":"43316cb9-3442-4f14-8f71-43c05da45f13","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":77,"box":{"x":116,"y":846,"width":342,"height":13}},{"id":"dfe66615-7b37-4849-a883-7ea7c3fdb68f","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":77,"box":{"x":116,"y":869,"width":605,"height":13}},{"id":"fc7a84ca-caf2-490a-a436-0700c98f2332","block_type":"box","text":"I-52","page_number":77,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"e3a8bc49-ffef-4871-a7a2-78dd16c4fa4b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":77,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1bcc4d3e-492b-472f-9fc9-043198a32291","block_type":"box","text":"Brokerage Commissions.","page_number":78,"box":{"x":116,"y":79,"width":173,"height":13}},{"id":"4d3d67e1-e697-4fe9-aff3-d8753673f31c","block_type":"box","text":"Information about the brokerage commissions paid by each Fund, including","page_number":78,"box":{"x":295,"y":79,"width":527,"height":13}},{"id":"403e2841-64dd-4020-b2df-8a01e04ab785","block_type":"box","text":"commissions paid to affiliates of the Manager, for the last","page_number":78,"box":{"x":116,"y":94,"width":401,"height":13}},{"id":"224d7adc-632d-4c5d-8544-bdfd87749983","block_type":"box","text":"three fiscal years is set forth in the following table:","page_number":78,"box":{"x":521,"y":94,"width":348,"height":13}},{"id":"a18a03a8-404d-4a67-96ce-22e4ea75ce7f","block_type":"box","text":"Aggregate Brokerage Commissions Paid","page_number":78,"box":{"x":381,"y":118,"width":232,"height":10}},{"id":"04d988ec-4690-4878-b36a-e54cd520d121","block_type":"box","text":"For the Year Ended December 31,","page_number":78,"box":{"x":398,"y":128,"width":197,"height":10}},{"id":"82dbeeb4-3a68-41fe-8be4-c01df5c2e4e6","block_type":"box","text":"Commissions Paid to Affiliates","page_number":78,"box":{"x":671,"y":118,"width":177,"height":8}},{"id":"c5344bb7-a3de-429f-9cca-aac5636f54f7","block_type":"box","text":"For the Year Ended December 31,","page_number":78,"box":{"x":661,"y":128,"width":197,"height":10}},{"id":"c4f2373f-56b3-4dd2-8c1b-6f0f0df91357","block_type":"box","text":"2025","page_number":78,"box":{"x":391,"y":143,"width":29,"height":8}},{"id":"55a93d39-f160-4409-8585-2b4e71c84bbb","block_type":"box","text":"2024","page_number":78,"box":{"x":482,"y":143,"width":29,"height":8}},{"id":"9f076922-0a98-40bb-a774-30b65932fae7","block_type":"box","text":"2023","page_number":78,"box":{"x":573,"y":143,"width":29,"height":8}},{"id":"bd08a24e-9075-44fe-92a4-0c72921104da","block_type":"box","text":"2025","page_number":78,"box":{"x":661,"y":143,"width":28,"height":8}},{"id":"69aa4ab1-2a06-4426-ad19-0c6dc5b410f7","block_type":"box","text":"2024","page_number":78,"box":{"x":745,"y":143,"width":29,"height":8}},{"id":"9fcb4a9f-37af-4dd0-ad6e-a9a4145ad29d","block_type":"box","text":"2023","page_number":78,"box":{"x":829,"y":143,"width":29,"height":8}},{"id":"1e1ec3d7-423d-4609-9b14-52e74df8dc0b","block_type":"box","text":"BlackRock 60/40 Target Allocation ETF\r\nVIFd","page_number":78,"box":{"x":116,"y":161,"width":234,"height":10}},{"id":"801055df-a967-45c4-89c3-aa537b836706","block_type":"box","text":"V.I. 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Fund $102,903 $109,637 $112,306 $0 $0 $0","page_number":78,"box":{"x":116,"y":291,"width":735,"height":11}},{"id":"067c661c-32bc-430f-866f-23cb26595333","block_type":"box","text":"BlackRock Global Allocation V.I. Fund $3,410,260 $4,404,792 $4,040,521 $0 $0 $0","page_number":78,"box":{"x":116,"y":305,"width":735,"height":11}},{"id":"160bb0dc-e251-47a5-bd82-9b8c196e8427","block_type":"box","text":"BlackRock Government Money Market\r\nVIFd","page_number":78,"box":{"x":116,"y":320,"width":230,"height":10}},{"id":"0b63dfa9-a25e-4640-9c91-45c60389b0b3","block_type":"box","text":"V.I. Fund","page_number":78,"box":{"x":116,"y":329,"width":55,"height":8}},{"id":"a36812ba-e6ac-4b40-ad35-dd05571f37c3","block_type":"box","text":"$0 $0 $0 $0 $0 $0","page_number":78,"box":{"x":399,"y":329,"width":452,"height":9}},{"id":"1db5015d-06c5-41ae-a882-fb4ecb0211b8","block_type":"box","text":"BlackRock International Index V.I. 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The","page_number":82,"box":{"x":116,"y":226,"width":745,"height":13}},{"id":"1a832eb3-fa8a-48f4-bc51-110e55f75bc1","block_type":"box","text":"determination of a Fund’s asset class category (fixed-in","page_number":82,"box":{"x":116,"y":241,"width":380,"height":13}},{"id":"c349f719-9b8f-49d7-a006-75e83e428289","block_type":"box","text":"come, domestic equity, international equity, or fund of","page_number":82,"box":{"x":496,"y":241,"width":380,"height":13}},{"id":"50dbb2fa-bad6-4e10-850e-f15ab1742418","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by","page_number":82,"box":{"x":116,"y":257,"width":752,"height":13}},{"id":"d30f2123-c634-41df-95ba-a59af23f18f4","block_type":"box","text":"the Company and BIM.","page_number":82,"box":{"x":116,"y":272,"width":164,"height":13}},{"id":"1e1eaffe-4219-404f-b5be-05d7cefe17ae","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) if BlackRock Government Money Market V.I. Fund","page_number":82,"box":{"x":116,"y":295,"width":750,"height":13}},{"id":"4c08bf40-6336-4dbb-818c-248382a41e3a","block_type":"box","text":"were to engage in securities lending, it would retain 82% of securities lending income (which excludes","page_number":82,"box":{"x":116,"y":310,"width":706,"height":13}},{"id":"f1d8b846-ab9e-4c5b-be0b-eca8060913f4","block_type":"box","text":"collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities lending","page_number":82,"box":{"x":116,"y":325,"width":739,"height":13}},{"id":"ba22d77e-6383-4843-80c0-fece7cd6fb82","block_type":"box","text":"income plus collateral investment fees.","page_number":82,"box":{"x":116,"y":340,"width":265,"height":13}},{"id":"62c55f39-5df7-4046-9b64-b69c28e020a9","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) BlackRock Advantage Large Cap Core V.I. Fund,","page_number":82,"box":{"x":116,"y":363,"width":733,"height":12}},{"id":"c9717d7f-52d4-4faa-8ca8-ac428ce19d35","block_type":"box","text":"BlackRock Advantage Large Cap Value V.I. Fund, BlackRock Advantage SMID Cap V.I. Fund, BlackRock","page_number":82,"box":{"x":116,"y":378,"width":745,"height":13}},{"id":"94534cb7-2166-4718-a9f3-a676a146be25","block_type":"box","text":"Basic Value V.I. Fund, BlackRock Capital Appreciation V.I. Fund, BlackRock Equity Dividend V.I. Fund,","page_number":82,"box":{"x":116,"y":393,"width":733,"height":13}},{"id":"8d496b16-d808-49a8-986b-7c2bdf40d540","block_type":"box","text":"BlackRock Global Allocation V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund, BlackRock Managed","page_number":82,"box":{"x":116,"y":408,"width":765,"height":13}},{"id":"60f40bd1-d724-4b8f-a2ef-ea33f8e6a680","block_type":"box","text":"Volatility V.I. Fund, BlackRock S&P 500 Index V.I. Fund and BlackRock Small Cap Index V.I. 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Fund and BlackRock International V.I. Fund retain 82% of","page_number":82,"box":{"x":116,"y":492,"width":707,"height":12}},{"id":"43f6a20d-0965-4813-a037-f293cc122d99","block_type":"box","text":"securities lending income (which excludes collateral investment fees); and (ii) this amount can never be less","page_number":82,"box":{"x":116,"y":507,"width":738,"height":13}},{"id":"035a1b3c-e1ea-4db6-baf6-6613df4b6771","block_type":"box","text":"than 70% of the sum of securities lending income plus collateral investment fees.","page_number":82,"box":{"x":116,"y":523,"width":559,"height":13}},{"id":"ad92c535-2377-4506-9566-cf6d32447564","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":82,"box":{"x":116,"y":546,"width":727,"height":13}},{"id":"0067c472-c897-416c-8ba6-5ea55198a3d0","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a","page_number":82,"box":{"x":116,"y":561,"width":384,"height":13}},{"id":"26c19594-bbc5-447e-b4ab-6e86c9f365be","block_type":"box","text":"calendar year exceeds specific thresholds, each Fund,","page_number":82,"box":{"x":505,"y":561,"width":365,"height":13}},{"id":"d59c0d0c-78f2-4e15-b45b-4d3730d6cda5","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year","page_number":82,"box":{"x":116,"y":577,"width":720,"height":13}},{"id":"2c8bafdf-7e5c-44f2-b0f9-ae7aea764433","block_type":"box","text":"securities lending income as follows:","page_number":82,"box":{"x":116,"y":592,"width":251,"height":13}},{"id":"e4f58071-3747-474e-a5d9-884d9f1d9cae","block_type":"box","text":"BlackRock Government Money Market V.I. 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Fund, BlackRock Managed","page_number":83,"box":{"x":116,"y":141,"width":731,"height":13}},{"id":"7d4ca038-88c7-44eb-9fe7-ed44c3336d13","block_type":"box","text":"Volatility V.I. Fund, BlackRock S&P 500 Index V.I. Fund and BlackRock Small Cap Index V.I. 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Fund","page_number":84,"box":{"x":822,"y":660,"width":55,"height":8}},{"id":"78736584-8d04-4b83-af2d-0df876a5c680","block_type":"box","text":"Gross income from securities lending activities","page_number":84,"box":{"x":116,"y":679,"width":268,"height":10}},{"id":"4f2a3b5e-020e-4ba5-9dd6-9a95a01f0d0b","block_type":"box","text":"$82,559 $2,400,135 $2,256,381","page_number":84,"box":{"x":617,"y":679,"width":265,"height":10}},{"id":"8eeb3e41-fc01-4c4d-b135-4b7b56a1d7ab","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":84,"box":{"x":116,"y":699,"width":445,"height":10}},{"id":"a90d767f-492a-44df-be48-d7a0b12e053e","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent $867 $34,919 $68,737","page_number":84,"box":{"x":116,"y":714,"width":758,"height":10}},{"id":"e46bed56-d3e6-45db-8584-f834b45c73e8","block_type":"box","text":"Cash collateral management expenses not included in securities lending\r\nd","page_number":84,"box":{"x":116,"y":729,"width":412,"height":10}},{"id":"49644100-4500-41b2-8740-865e7d8b03be","block_type":"box","text":"income paid to BIM","page_number":84,"box":{"x":116,"y":739,"width":116,"height":10}},{"id":"e4e62690-e3a6-49aa-81a2-5dfca8df0320","block_type":"box","text":"$735 $20,780 $18,905","page_number":84,"box":{"x":626,"y":739,"width":247,"height":10}},{"id":"77bf8f1b-ef3f-4e84-89b7-4d56b2e5991c","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM $0 $0 $0","page_number":84,"box":{"x":116,"y":754,"width":740,"height":10}},{"id":"ab7f58ac-8bc7-4e86-822b-be81eb652b7c","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM $0 $0 $0","page_number":84,"box":{"x":116,"y":769,"width":740,"height":10}},{"id":"28197cc7-2626-4c80-8dc7-575e6c449944","block_type":"box","text":"Rebates (paid to borrowers) $76,998 $2,187,770 $1,874,450","page_number":84,"box":{"x":116,"y":784,"width":767,"height":11}},{"id":"cacd284b-b9b0-4873-898a-2f1f670d806c","block_type":"box","text":"Other fees not included in securities lending income paid to BIM $0 $0 $0","page_number":84,"box":{"x":116,"y":799,"width":740,"height":11}},{"id":"da1e7304-4ca6-48d7-b4dc-544bee3be113","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":84,"box":{"x":116,"y":814,"width":347,"height":11}},{"id":"04e4aab1-9833-4baf-9005-4a738543d287","block_type":"box","text":"$78,600 $2,243,469 $1,962,092","page_number":84,"box":{"x":617,"y":814,"width":266,"height":10}},{"id":"bdeebc5d-6d3c-4a4e-a501-1776ce97c735","block_type":"box","text":"Net income from securities lending activities","page_number":84,"box":{"x":116,"y":835,"width":256,"height":10}},{"id":"82c248c7-dd9b-4e97-8489-9a6d149fb30c","block_type":"box","text":"$3,959 $156,666 $294,289","page_number":84,"box":{"x":620,"y":834,"width":257,"height":10}},{"id":"32949524-d21a-4baf-bdb8-b9d373285224","block_type":"box","text":"I-59","page_number":84,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"3be443d8-109d-475b-b7e8-97180825736c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":84,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b899e685-ff0f-4edc-9211-416769595b11","block_type":"box","text":"BlackRock Government Money Market V.I. Fund had no income and fees/compensation related to its","page_number":85,"box":{"x":116,"y":79,"width":708,"height":13}},{"id":"efd848c3-d62b-4ae4-8e19-c29d1bfd5b05","block_type":"box","text":"securities lending activities during its most recent fiscal year ended December 31, 2025.","page_number":85,"box":{"x":116,"y":94,"width":603,"height":13}},{"id":"45908a28-b42d-4e2d-9119-a1b31b0d901a","block_type":"box","text":"VIII. Purchase of Shares","page_number":85,"box":{"x":116,"y":122,"width":202,"height":10}},{"id":"7f027a06-c4eb-4b80-a85c-02c42af7f871","block_type":"box","text":"The Company continuously offers shares of Class I Shares, Class II Shares and Class III Shares of the Funds at","page_number":85,"box":{"x":116,"y":147,"width":762,"height":13}},{"id":"a5ad49b8-e2ff-4c5e-927f-b4793a75db02","block_type":"box","text":"prices equal to the per share net asset value of the Fund. BRIL, an affiliate of the Manager, acts as the Funds’","page_number":85,"box":{"x":116,"y":163,"width":754,"height":13}},{"id":"445530c6-0ff0-4a42-8acf-b0591cc0debe","block_type":"box","text":"sole Distributor.","page_number":85,"box":{"x":116,"y":178,"width":112,"height":10}},{"id":"52b2733b-637f-4c30-993c-eab7094996e2","block_type":"box","text":"Net asset value is determined in the manner set forth under “Determination of Net Asset Value.”","page_number":85,"box":{"x":116,"y":201,"width":672,"height":10}},{"id":"6ef5e38d-7b4e-481e-87cd-3fd7600862dd","block_type":"box","text":"The Company and the Distributor reserve the right to suspend the sale of shares of the Funds in response to","page_number":85,"box":{"x":116,"y":224,"width":746,"height":13}},{"id":"70292371-5cbd-4f4a-8071-18170d90d92c","block_type":"box","text":"conditions in the securities markets or otherwise. Any order may be rejected by the Company or the","page_number":85,"box":{"x":116,"y":239,"width":692,"height":13}},{"id":"71841cf4-6076-42a5-90c1-d473b192db74","block_type":"box","text":"Distributor. Generally, only Separate Accounts of Insurance Companies may purchase Fund shares for the","page_number":85,"box":{"x":116,"y":255,"width":737,"height":13}},{"id":"952383d4-036f-485b-9572-70fcb98ee572","block_type":"box","text":"benefit of such Insurance Company’s owners who elect to have all or a portion of their premium contributions","page_number":85,"box":{"x":116,"y":270,"width":767,"height":13}},{"id":"d2fe28cd-58ff-4012-ad56-38f328603abd","block_type":"box","text":"invested in shares of a Fund. Accordingly, each Separate Account that owns shares of a Fund maintains","page_number":85,"box":{"x":116,"y":286,"width":717,"height":13}},{"id":"a2f36048-f00e-4ef1-b405-a8ddff6b6b68","block_type":"box","text":"omnibus accounts with the Funds’ Transfer Agent for the benefit of the Insurance Company’s Contract","page_number":85,"box":{"x":116,"y":301,"width":715,"height":13}},{"id":"c6801ae1-805e-4683-a12e-3a99cd3451f1","block_type":"box","text":"owners, often resulting in considerable savings in administrative expenses for the Funds’ management.","page_number":85,"box":{"x":116,"y":317,"width":708,"height":13}},{"id":"c98cc33e-a8ef-4d7f-892a-a07e49361817","block_type":"box","text":"IX. Special Tax Rules Applicable to Variable Contracts","page_number":85,"box":{"x":116,"y":345,"width":441,"height":12}},{"id":"18fdc380-86f8-4c73-bef3-5d70a991538f","block_type":"box","text":"Each Fund has elected to be treated, and intends to qualify each year, as a regulated investment company","page_number":85,"box":{"x":116,"y":367,"width":728,"height":13}},{"id":"69821b6b-c2cd-405e-b3cb-51bc39335adc","block_type":"box","text":"under the Internal Revenue Code. In order to qualify to be taxable as a regulated investment company, each","page_number":85,"box":{"x":116,"y":383,"width":749,"height":13}},{"id":"89af3686-1b7e-44a1-b773-c22a74b74f1e","block_type":"box","text":"Fund must meet certain income and asset diversification tests and distribution requirements. As regulated","page_number":85,"box":{"x":116,"y":398,"width":730,"height":13}},{"id":"b9282320-0c6c-4a05-ba1b-0f9ad0e3e09c","block_type":"box","text":"investment companies, the Funds will not be subject to U.S. federal income tax on their net investment income","page_number":85,"box":{"x":116,"y":414,"width":765,"height":13}},{"id":"78e70083-0e69-4471-9f0b-6da72ae531e8","block_type":"box","text":"and net capital gains that they distribute to their shareholders.","page_number":85,"box":{"x":116,"y":429,"width":430,"height":13}},{"id":"1a21f433-6857-41d4-8d79-589b64661bb2","block_type":"box","text":"Distributions made by a Portfolio to an Account, and exchanges and redemptions of Portfolio shares made by","page_number":85,"box":{"x":116,"y":452,"width":763,"height":13}},{"id":"d0d0bc83-dd74-49e4-a155-a56d1b37c21f","block_type":"box","text":"an Account, ordinarily do not cause the corresponding Contract holder to recognize income or gain for U.S.","page_number":85,"box":{"x":116,"y":468,"width":748,"height":13}},{"id":"3fdc289a-6fc4-4951-a7fe-fe0643cdc05d","block_type":"box","text":"federal income tax purposes. See the Contract prospectus for information regarding the U.S. federal income","page_number":85,"box":{"x":116,"y":483,"width":745,"height":13}},{"id":"a1a4a36f-9376-47f9-90b5-fd2121d6a9f2","block_type":"box","text":"tax treatment of the distributions to Accounts and the holders of the Contracts.","page_number":85,"box":{"x":116,"y":499,"width":550,"height":10}},{"id":"231e796e-ec53-4268-a8ee-3c51288ebac2","block_type":"box","text":"In order for the Contract holders to be eligible for such U.S. federal income tax deferral, each separate account","page_number":85,"box":{"x":116,"y":522,"width":766,"height":12}},{"id":"bf1c42f9-ce77-4aea-9a8d-a410e84e6c14","block_type":"box","text":"of the Insurance Companies (referred to as “segregated asset accounts” for U.S. federal income tax purposes)","page_number":85,"box":{"x":116,"y":537,"width":755,"height":13}},{"id":"cb363946-c375-4e80-aea0-4f81ac0febe5","block_type":"box","text":"must comply with certain asset diversification requirements and investor control prohibitions.","page_number":85,"box":{"x":116,"y":553,"width":649,"height":12}},{"id":"4b036a77-ca1e-477d-8ffd-7d7442c60e73","block_type":"box","text":"Diversification Requirements","page_number":85,"box":{"x":116,"y":575,"width":212,"height":13}},{"id":"999a87a3-609a-4aa6-964e-bef750ec9cc3","block_type":"box","text":"Specifically, each segregated asset account is required to comply with the diversification requirements of","page_number":85,"box":{"x":116,"y":598,"width":721,"height":13}},{"id":"a0bb37c5-fbab-4db7-91a1-d537e89c8da5","block_type":"box","text":"Section 817(h) of the Internal Revenue Code and the regul","page_number":85,"box":{"x":116,"y":614,"width":404,"height":12}},{"id":"7876405d-557c-4c27-a173-dddba3bb0096","block_type":"box","text":"ations thereunder relating to the tax-deferred status","page_number":85,"box":{"x":521,"y":614,"width":356,"height":12}},{"id":"8909d910-3957-4cbc-93ab-cc259c9658ed","block_type":"box","text":"of segregated asset accounts. If a segregated asset account fails these requirements, (i) the Contract would not","page_number":85,"box":{"x":116,"y":629,"width":757,"height":13}},{"id":"f36c6a06-56dd-4838-a43a-7b9ad889f911","block_type":"box","text":"be treated as an annuity or life insurance contract under the Internal Revenue Code and (ii) the holders of","page_number":85,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"78e1eecd-f70a-4e7a-9216-1f722537bc51","block_type":"box","text":"such Contract would be required to include as ordinary income the “income on the contract” for each taxable","page_number":85,"box":{"x":116,"y":660,"width":764,"height":13}},{"id":"1411d9f4-94a0-4e0b-9493-35834ce98330","block_type":"box","text":"year. Generally, the “income on the contract” is the excess of (i) the sum of the increase in the net surrender","page_number":85,"box":{"x":116,"y":676,"width":747,"height":12}},{"id":"5e927e49-bd93-466f-b1f2-103bf7ea6321","block_type":"box","text":"value of the Contract during the taxable year and the cost of the life insurance protection provided under the","page_number":85,"box":{"x":116,"y":691,"width":754,"height":13}},{"id":"815f4daf-87a0-4286-8a87-4e97f57c9ec3","block_type":"box","text":"Contract during the year, over (ii) the premiums paid under the Contract during the taxable year. Contract","page_number":85,"box":{"x":117,"y":707,"width":740,"height":12}},{"id":"1e169cc4-e763-4942-8ac4-9869658e7c41","block_type":"box","text":"holders could also be taxable in future years even if the segregated asset account subsequently complied with","page_number":85,"box":{"x":116,"y":722,"width":753,"height":13}},{"id":"a91ca75f-db09-416f-a7a4-d73dc7d74310","block_type":"box","text":"the diversification tests.","page_number":85,"box":{"x":116,"y":738,"width":162,"height":10}},{"id":"422193b0-1fa1-441d-9db8-c2f727d0214d","block_type":"box","text":"To satisfy these diversification requirements, as of the end of each calendar quarter or within 30 days thereafter,","page_number":85,"box":{"x":116,"y":760,"width":757,"height":13}},{"id":"8e517c16-1262-48f9-88e3-e4e1e383563a","block_type":"box","text":"each segregated asset account must meet one of two tests. Either (i) the segregated asset account must have no","page_number":85,"box":{"x":116,"y":776,"width":743,"height":13}},{"id":"161ca06b-43da-414f-aa75-ce2fbdd3a926","block_type":"box","text":"more than 55% of its total assets represented by any one investment, no more than 70% of its total assets","page_number":85,"box":{"x":116,"y":792,"width":717,"height":12}},{"id":"0df2a1a8-021d-419d-b98a-6e3b9cb13316","block_type":"box","text":"represented by any two investments, no more than 80% of its total assets represented by any three investments,","page_number":85,"box":{"x":116,"y":807,"width":754,"height":13}},{"id":"f221ba19-4328-419a-9fcb-d040c619aa7d","block_type":"box","text":"and no more than 90% of its total assets represented by any four investments or (ii) the segregated asset account","page_number":85,"box":{"x":116,"y":823,"width":761,"height":12}},{"id":"8b95fdae-d46c-4f73-81c4-dc5374ebec98","block_type":"box","text":"must both (a) meet all the tax diversification requirements under Section 851(b)(3) of the Internal Revenue Code","page_number":85,"box":{"x":116,"y":838,"width":762,"height":13}},{"id":"0646b861-c91e-439b-b47f-e00c52533a8e","block_type":"box","text":"(which are applicable to all regulated investment companies) and (b) have no more than 55% of the value of its","page_number":85,"box":{"x":117,"y":854,"width":753,"height":12}},{"id":"f8002020-f7ce-481b-8d24-07dc08d8b0bb","block_type":"box","text":"total assets be attributable to cash, cash items (including receivables), Government securities or securities of other","page_number":85,"box":{"x":116,"y":869,"width":765,"height":13}},{"id":"6f42c148-e81d-4906-a61b-10a50a035e2f","block_type":"box","text":"I-60","page_number":85,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"deb9cb49-096c-4a9a-95ab-072b9a8d3fe6","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":85,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2e8a6139-7883-486f-9b9c-6c936658c226","block_type":"box","text":"regulated investment companies. For purposes of the first test, all securities of the same issuer are considered a","page_number":86,"box":{"x":116,"y":79,"width":744,"height":13}},{"id":"113d310f-44da-4dfb-8007-09577c648987","block_type":"box","text":"single investment, but in the case of Government securities, each Government agency or instrumentality is","page_number":86,"box":{"x":116,"y":94,"width":715,"height":13}},{"id":"f1fbc588-7e7d-4e35-90aa-1655283176bc","block_type":"box","text":"considered to be a separate issuer. An alternative test to establish diversification may be available under certain","page_number":86,"box":{"x":116,"y":110,"width":749,"height":13}},{"id":"997b04e4-db46-4d02-8967-907d1fd2c167","block_type":"box","text":"circumstances.","page_number":86,"box":{"x":116,"y":126,"width":98,"height":9}},{"id":"b888b4b4-d67f-4e14-a114-0d2067aab4c0","block_type":"box","text":"Section 817(h) of the Internal Revenue Code provides a look-through rule for purposes of testing the","page_number":86,"box":{"x":116,"y":149,"width":698,"height":12}},{"id":"019515ab-5225-4fa4-bf8f-1ff0123f2cd1","block_type":"box","text":"diversification of a segregated asset account that invests in a regulated investment company such as a Fund. If","page_number":86,"box":{"x":116,"y":164,"width":759,"height":13}},{"id":"24cce723-7a32-4642-ba1d-386065d9006a","block_type":"box","text":"the look-through rule applies, a beneficial interest in a regulated investment company will not be treated as a","page_number":86,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"356a7bff-ac99-4f46-bb1e-cf39273e3d27","block_type":"box","text":"single investment of a segregated asset account for purposes of the diversification requirements described","page_number":86,"box":{"x":116,"y":195,"width":726,"height":13}},{"id":"1310a66b-925d-4849-aadd-0374958672a4","block_type":"box","text":"above; instead, a pro rata portion of each asset of the regulated investment company will be treated as an asset","page_number":86,"box":{"x":116,"y":211,"width":767,"height":12}},{"id":"197758d3-7833-486d-b8fc-83474203f903","block_type":"box","text":"of the segregated asset account. Treasury Regulations Section 1.817-5(f)(2) provides (except as otherwise","page_number":86,"box":{"x":116,"y":226,"width":728,"height":13}},{"id":"997f22dd-eb62-4bfc-af29-c86a17f79246","block_type":"box","text":"permitted) that the look-through rule will apply to a regulated investment company only if (i) all the beneficial","page_number":86,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"a6d325f9-d0f4-4c1a-83c2-87b0de33f256","block_type":"box","text":"interests in the regulated investment company are held by one or more segregated asset accounts of one or","page_number":86,"box":{"x":116,"y":257,"width":735,"height":13}},{"id":"26252014-4aa2-4740-88f2-bc743b739281","block_type":"box","text":"more insurance companies and (ii) public access to such reg","page_number":86,"box":{"x":116,"y":273,"width":413,"height":12}},{"id":"d2f1c3bc-b04b-4b20-a51d-a6591d66dcc6","block_type":"box","text":"ulated investment company is available exclusively","page_number":86,"box":{"x":529,"y":273,"width":351,"height":12}},{"id":"8b41f22a-d309-47dc-be8b-3e8ef4518f57","block_type":"box","text":"through the purchase of a variable contract. Failure by the Fund to satisfy the Section 817(h) requirements by","page_number":86,"box":{"x":116,"y":288,"width":759,"height":13}},{"id":"f99f1758-73a0-4fdb-a57c-2562668d00ce","block_type":"box","text":"failing to comply with the “55%-70%-80%-90%” diversification test or the safe harbor described above","page_number":86,"box":{"x":116,"y":304,"width":730,"height":12}},{"id":"13ec45ce-476e-4a3d-ac98-ca0ab5c103f8","block_type":"box","text":"could cause the variable contracts to lose their favora","page_number":86,"box":{"x":116,"y":319,"width":369,"height":10}},{"id":"82adb63b-1acc-4941-8534-8898109039bd","block_type":"box","text":"ble tax status and require a contract holder to include in","page_number":86,"box":{"x":486,"y":319,"width":389,"height":13}},{"id":"0b4424a0-3215-4ab3-b8e9-a7cd68d50f29","block_type":"box","text":"ordinary income any income accrued under the contracts for the current and all prior taxable years.","page_number":86,"box":{"x":116,"y":335,"width":690,"height":12}},{"id":"6e65b337-2c00-49ca-83ef-adb399f1e329","block_type":"box","text":"Under certain circumstances described in the applicable T","page_number":86,"box":{"x":116,"y":358,"width":399,"height":13}},{"id":"b326594d-8054-4246-bed7-7776d660f3b4","block_type":"box","text":"reasury regulations, inadvertent failure to satisfy the","page_number":86,"box":{"x":516,"y":358,"width":360,"height":13}},{"id":"d6066b15-3fc7-4a06-abb6-13a47497b418","block_type":"box","text":"Section 817(h) diversification requirements may be corrected, but such a correction could require a payment","page_number":86,"box":{"x":116,"y":373,"width":750,"height":13}},{"id":"1b120034-8274-497d-829a-0b27cf0a53ab","block_type":"box","text":"to the IRS with respect to the period or periods during which the investments of the account did not meet the","page_number":86,"box":{"x":116,"y":389,"width":756,"height":13}},{"id":"f0a4b533-2555-4c70-8c28-69c67a8bb8e9","block_type":"box","text":"diversification requirements. The amount of any such payment could be based on the tax contract holders","page_number":86,"box":{"x":116,"y":404,"width":734,"height":13}},{"id":"78c2e8d3-7b18-4ef2-ab0a-b0f159ab2c57","block_type":"box","text":"would have incurred if they were treated as receiving the income on the contract for the period during which","page_number":86,"box":{"x":116,"y":420,"width":753,"height":13}},{"id":"e6d26ad4-89ce-4b6e-a573-1ac402d3405d","block_type":"box","text":"the diversification requirements were not satisfied. Any such failure could also result in adverse tax","page_number":86,"box":{"x":116,"y":435,"width":685,"height":13}},{"id":"288a396e-fe45-4291-9542-daaf00a7e9bb","block_type":"box","text":"consequences for the Insurance Company issuing the contracts.","page_number":86,"box":{"x":116,"y":451,"width":437,"height":13}},{"id":"7138fb73-3b34-4b05-bab7-45670dbffafe","block_type":"box","text":"Investor Control Prohibitions","page_number":86,"box":{"x":116,"y":474,"width":215,"height":10}},{"id":"93a0938e-f396-4683-a40d-660e003c2f8a","block_type":"box","text":"For a Contract to qualify for U.S. federal income tax deferral, it must avoid the prohibition on investor","page_number":86,"box":{"x":116,"y":497,"width":714,"height":13}},{"id":"7e7fa5fb-056b-4af2-bd21-8442d50c04b5","block_type":"box","text":"control so that assets in the segregated asset accounts supporting the Contract are considered to be owned for","page_number":86,"box":{"x":116,"y":513,"width":760,"height":13}},{"id":"b18f2258-9200-4893-a441-d282d88dfe31","block_type":"box","text":"U.S. federal income tax purposes by the Insurance Company and not by the Contract holder. Accordingly, a","page_number":86,"box":{"x":116,"y":528,"width":750,"height":13}},{"id":"af83345b-07ca-46ac-b955-4ac45b80b2d6","block_type":"box","text":"Contract holder should not have an impermissible level of control over a segregated asset account’s or a","page_number":86,"box":{"x":117,"y":544,"width":719,"height":13}},{"id":"d29fb29b-1a72-4812-8c75-f44a6f529ff0","block_type":"box","text":"Fund’s investment in any particular asset. If the Contract holder were considered the owner of the Fund shares","page_number":86,"box":{"x":116,"y":559,"width":766,"height":13}},{"id":"3cc48391-ce2e-4c46-8939-6d62bc4cd470","block_type":"box","text":"for U.S. federal income tax purposes, income and gain earned from such Fund shares for the current, future","page_number":86,"box":{"x":116,"y":575,"width":745,"height":13}},{"id":"c80610bf-3ac1-4b1b-a0ff-b93e8172ff9d","block_type":"box","text":"and prior taxable years would be taxable currently to the Contract holders.","page_number":86,"box":{"x":116,"y":590,"width":522,"height":13}},{"id":"69f78428-7278-4fcd-85e2-aaedf43ec971","block_type":"box","text":"The IRS may consider several factors in determining whether a contract holder has an impermissible level of","page_number":86,"box":{"x":116,"y":614,"width":750,"height":12}},{"id":"af6b7e9a-dcf5-439d-ae50-e855231e9799","block_type":"box","text":"investor control over a segregated asset account. One factor the IRS considers when a segregated asset account","page_number":86,"box":{"x":116,"y":629,"width":766,"height":13}},{"id":"8d5591d8-229b-4b58-b899-b7df43398d24","block_type":"box","text":"invests in one or more regulated investment companies is whether shares in the regulated investment","page_number":86,"box":{"x":116,"y":645,"width":695,"height":12}},{"id":"d7d50b0c-6f9b-49f1-a548-e2e72c32e0b7","block_type":"box","text":"companies are publicly available or whether such shares are available exclusively through the purchase of a","page_number":86,"box":{"x":116,"y":660,"width":743,"height":13}},{"id":"31cb57df-a649-4117-b3fe-775fe05fb57a","block_type":"box","text":"variable contract. Each Fund sells its shares directly to separate accounts established and maintained by","page_number":86,"box":{"x":116,"y":676,"width":717,"height":12}},{"id":"f2e832da-dd03-4380-ae32-c4daac1f813c","block_type":"box","text":"insurance companies for the purpose of funding variable annuity and variable life insurance contracts and to","page_number":86,"box":{"x":116,"y":691,"width":752,"height":13}},{"id":"a4bd1ffe-535a-45ca-849f-dd5e6a1693b7","block_type":"box","text":"certain qualified pension and retirement plans, or to other regulated investment companies meeting such","page_number":86,"box":{"x":116,"y":707,"width":723,"height":12}},{"id":"1f5ede4f-07ec-4bf4-b0d8-1a164dbdd531","block_type":"box","text":"requirements, and not to other categories of shareholders.","page_number":86,"box":{"x":116,"y":722,"width":400,"height":13}},{"id":"8668b4f7-1a13-497d-8305-58120aac2af8","block_type":"box","text":"A second factor the IRS considers when a segregated asset account invests in one or more regulated","page_number":86,"box":{"x":116,"y":745,"width":688,"height":13}},{"id":"a528fb8e-db99-469b-9b04-657e9d94e5b9","block_type":"box","text":"investment companies is whether a regulated investment company’s investment strategies are sufficiently","page_number":86,"box":{"x":116,"y":761,"width":723,"height":13}},{"id":"22a9cfb9-377a-4357-9256-8b65fe1f71df","block_type":"box","text":"broad and general (such as stocks, bonds or money market instruments) to prevent a Contract holder from","page_number":86,"box":{"x":116,"y":776,"width":741,"height":13}},{"id":"70878610-76a0-4871-99ad-294edc9813fe","block_type":"box","text":"being deemed to be making particular investment decisions through its investment in the segregated asset","page_number":86,"box":{"x":116,"y":792,"width":727,"height":13}},{"id":"49324c5a-c2f5-418d-b0f0-a573669a3d96","block_type":"box","text":"account. Under current IRS guidance, the investment strategies of each Fund are expected to be sufficiently","page_number":86,"box":{"x":116,"y":807,"width":740,"height":13}},{"id":"6af69f6e-94ea-4bae-87c4-3a23a69f540f","block_type":"box","text":"broad to satisfy this factor and prevent a Contract holder from being deemed to be making particular","page_number":86,"box":{"x":116,"y":823,"width":703,"height":13}},{"id":"e4565326-7f46-4e1f-b1b5-d849942c89fe","block_type":"box","text":"investment decisions through its investment in the segregated asset account.","page_number":86,"box":{"x":116,"y":838,"width":522,"height":13}},{"id":"d5e5cadb-7819-482b-97c5-996b1e3ec8bc","block_type":"box","text":"I-61","page_number":86,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"0d3f30bb-5210-4139-8cc1-10f1df421dd0","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":86,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"44f8b97e-8621-4211-ab35-8ea7f0698b5d","block_type":"box","text":"Each Fund intends (1) to comply with the requirements necessary to allow a segregated asset account that","page_number":87,"box":{"x":116,"y":79,"width":733,"height":13}},{"id":"a59bfbd3-743c-4ac1-88a4-cb0032c6637e","block_type":"box","text":"invests in the Fund to look-through to the Fund’s investments for purposes of satisfying the asset","page_number":87,"box":{"x":116,"y":94,"width":669,"height":13}},{"id":"3b316bb5-b0d6-4778-87ce-4f700581796c","block_type":"box","text":"diversification requirements of Section 817(h) of the Code, (2) to comply with such asset diversification","page_number":87,"box":{"x":116,"y":110,"width":717,"height":13}},{"id":"79b9f093-a8d1-42ba-8fa0-68f3b66a17e6","block_type":"box","text":"requirements necessary to prevent the Contract holders","page_number":87,"box":{"x":116,"y":125,"width":382,"height":13}},{"id":"f02ced84-e40d-4d89-8dba-9b4400cf32ca","block_type":"box","text":"from losing their special tax treatment because of","page_number":87,"box":{"x":503,"y":125,"width":342,"height":13}},{"id":"30bd3993-cc63-4a40-adda-cbe120a77085","block_type":"box","text":"investments in the Fund, and (3) to comply with the re","page_number":87,"box":{"x":116,"y":141,"width":378,"height":13}},{"id":"bab0ccf9-9471-4355-aad9-799be2a08d89","block_type":"box","text":"quirements necessary to prevent the Contract holders","page_number":87,"box":{"x":494,"y":141,"width":369,"height":13}},{"id":"5464bd33-e609-45c2-9283-30302a5b6d66","block_type":"box","text":"from having an impermissible level of control over the Fund’s assets.","page_number":87,"box":{"x":116,"y":156,"width":474,"height":13}},{"id":"17109814-9938-4099-8b23-4757b65d9511","block_type":"box","text":"In the event that additional rules, regulations or other guidance is issued by the IRS or the Treasury","page_number":87,"box":{"x":116,"y":179,"width":688,"height":13}},{"id":"b23ab989-cd00-49cf-833b-d90c8a9edcaf","block_type":"box","text":"Department concerning this issue, such guidance could affect the treatment of the Fund as described above,","page_number":87,"box":{"x":116,"y":195,"width":743,"height":12}},{"id":"4aa1b1a7-c818-4b6f-974e-eaf99a35b93c","block_type":"box","text":"including retroactively. In addition, there can be no assurance that the Fund will be able to continue to","page_number":87,"box":{"x":116,"y":210,"width":711,"height":13}},{"id":"b520271b-c6df-463a-8f93-a7d350509c18","block_type":"box","text":"operate as currently described, or that the Fund will not have to change its investment objective or investment","page_number":87,"box":{"x":116,"y":226,"width":761,"height":12}},{"id":"12ddcc9e-8a7c-407b-add7-2ec0e7d03f05","block_type":"box","text":"policies in order to prevent, on a prospective basis, any such rules and regulations from causing variable","page_number":87,"box":{"x":116,"y":241,"width":720,"height":13}},{"id":"a3cb0372-c839-4104-94c1-90b3fc1949cd","block_type":"box","text":"contract owners to be considered the owners of the shares of the Fund.","page_number":87,"box":{"x":116,"y":257,"width":491,"height":10}},{"id":"d8ec96d0-48f6-48ce-93b7-6964047d999e","block_type":"box","text":"Tax Treatment to Insurance Companies","page_number":87,"box":{"x":117,"y":280,"width":289,"height":12}},{"id":"0bc30d80-a318-4207-9ab6-ac27e8e32f6f","block_type":"box","text":"Dividends paid by a Fund may be included in the respective Insurance Company’s gross income. The tax","page_number":87,"box":{"x":116,"y":302,"width":725,"height":13}},{"id":"062cedc2-0aaf-4c6d-a9c2-3e5fb31cdb28","block_type":"box","text":"treatment of these dividends depends on the Insurance","page_number":87,"box":{"x":116,"y":318,"width":376,"height":12}},{"id":"a2d73db9-a776-46a5-b355-fb3f97599600","block_type":"box","text":"Company’s tax status. A description of an Insurance","page_number":87,"box":{"x":497,"y":318,"width":363,"height":12}},{"id":"ae25e005-1782-4e41-9ffd-d511d6b65417","block_type":"box","text":"Company’s tax status is contained in the prospectus for the Contract.","page_number":87,"box":{"x":117,"y":333,"width":479,"height":13}},{"id":"e826d93a-0d45-47bf-8e03-b23f688b0689","block_type":"box","text":"Dividends and interest received by a Fund and capital gains recognized by a Fund may give rise to withholding","page_number":87,"box":{"x":116,"y":356,"width":748,"height":13}},{"id":"a0aec96d-0d84-44a5-89db-207898a3dda2","block_type":"box","text":"and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States","page_number":87,"box":{"x":116,"y":371,"width":752,"height":13}},{"id":"f90d2be0-5271-4722-841d-0a3b8358cea3","block_type":"box","text":"may reduce or eliminate such taxes. As a shareholder in a Fund, an Insurance Company may be able to claim a","page_number":87,"box":{"x":116,"y":387,"width":752,"height":13}},{"id":"cc61517e-7949-4332-861b-f148e497ac63","block_type":"box","text":"credit or take a deduction for foreign taxes paid by the Fund if certain requirements are met.","page_number":87,"box":{"x":116,"y":402,"width":624,"height":13}},{"id":"07b71cc5-8cf7-4572-a916-6791b6736a01","block_type":"box","text":"This section summarizes some of the consequences under current federal tax law of an investment in a Fund.","page_number":87,"box":{"x":116,"y":425,"width":753,"height":13}},{"id":"cfb8ca1e-e191-4e21-91ef-56f38a1ed3fd","block_type":"box","text":"It is not a substitute for individualized tax advice. Consult your tax adviser about the potential tax","page_number":87,"box":{"x":116,"y":441,"width":682,"height":12}},{"id":"7754b17f-b160-41e0-976f-b1cc1156c2e0","block_type":"box","text":"consequences of an investment in a Fund under all applicable tax laws.","page_number":87,"box":{"x":116,"y":456,"width":490,"height":13}},{"id":"9c8b6622-010d-4436-a98c-e39c3bdacb79","block_type":"box","text":"X. Additional Information","page_number":87,"box":{"x":116,"y":479,"width":237,"height":10}},{"id":"f20b390e-9641-4e93-8f8e-75dc40478c83","block_type":"box","text":"Organization of the Company","page_number":87,"box":{"x":137,"y":504,"width":218,"height":13}},{"id":"a39e6a06-eae4-46cc-aa4a-4929709135bb","block_type":"box","text":"The Company was incorporated under the laws of the State of Maryland on October 16, 1981, and the","page_number":87,"box":{"x":116,"y":529,"width":719,"height":13}},{"id":"9f9d322b-b473-4563-9276-be4992dcb04e","block_type":"box","text":"Company commenced operations on July 1, 1993.","page_number":87,"box":{"x":117,"y":545,"width":348,"height":12}},{"id":"1973f96d-0545-46b5-87f5-309607305f28","block_type":"box","text":"Effective September 29, 2006, the Company changed its name from FAM Variable Series Funds, Inc. to","page_number":87,"box":{"x":116,"y":567,"width":702,"height":13}},{"id":"10f8bbcb-ae0f-49de-8401-4a779b73532e","block_type":"box","text":"BlackRock Variable Series Funds, Inc. The authorized","page_number":87,"box":{"x":116,"y":583,"width":365,"height":12}},{"id":"8333914c-7e0a-435b-ab84-aa457de45004","block_type":"box","text":"capital stock of the Company consists of 5,500,000,000","page_number":87,"box":{"x":485,"y":583,"width":380,"height":13}},{"id":"ae2b4dbe-5513-4cfe-b6b4-444a33dcacbb","block_type":"box","text":"shares of Class I Common Stock, 700,000,000 shares of Class II Common Stock and 2,430,000,000 shares of","page_number":87,"box":{"x":116,"y":598,"width":747,"height":13}},{"id":"42321f9a-297a-4185-ab82-26947435f52b","block_type":"box","text":"Class III Common Stock, par value $0.10 per share, and 5","page_number":87,"box":{"x":117,"y":614,"width":393,"height":13}},{"id":"1381c124-fd19-42e3-9015-a399223ed379","block_type":"box","text":",680,000,000 shares not designated or classified as to","page_number":87,"box":{"x":511,"y":614,"width":361,"height":13}},{"id":"cddd3bba-ebe4-4870-b96b-2474d94adcb4","block_type":"box","text":"any class or series. The shares of Class I, Class II and Class III Common Stock are divided into fifteen classes","page_number":87,"box":{"x":116,"y":629,"width":732,"height":13}},{"id":"72d14bb1-dc56-408a-a0b8-042cfc708fd7","block_type":"box","text":"designated as BlackRock 60/40 Target Allocation ETF V.I. Fund Common Stock (no Class II Shares), BlackRock","page_number":87,"box":{"x":116,"y":645,"width":766,"height":13}},{"id":"fe1aa7b5-3172-4510-bad7-868560681499","block_type":"box","text":"Advantage Large Cap Core V.I. Fund Common Stock, BlackRock Advantage Large Cap Value V.I. Fund","page_number":87,"box":{"x":116,"y":660,"width":714,"height":13}},{"id":"be85c1e8-7070-41c5-b858-a28747a645cc","block_type":"box","text":"Common Stock, BlackRock Advantage SMID Cap V.I. Fund Common Stock, BlackRock Basic Value V.I. Fund","page_number":87,"box":{"x":117,"y":676,"width":759,"height":13}},{"id":"e55602ab-29d4-49f1-9a9e-4e2501fbeb35","block_type":"box","text":"Common Stock, BlackRock Capital Appreciation V.I. Fund Common Stock (no Class II Shares), BlackRock","page_number":87,"box":{"x":117,"y":691,"width":732,"height":13}},{"id":"08c660fb-7791-4a90-bccc-498e831c094e","block_type":"box","text":"Equity Dividend V.I. Fund Common Stock (no Class II Shares), BlackRock Global Allocation V.I. Fund","page_number":87,"box":{"x":116,"y":707,"width":703,"height":13}},{"id":"18b95832-38cc-4828-b70c-99bce83beddf","block_type":"box","text":"Common Stock, BlackRock Government Money Market V.I. Fund Common Stock (no Class II or Class III","page_number":87,"box":{"x":117,"y":722,"width":727,"height":13}},{"id":"68adae18-31dd-4822-945e-b07883678057","block_type":"box","text":"Shares), BlackRock International Index V.I. Fund Common Stock (no Class II Shares), BlackRock International","page_number":87,"box":{"x":116,"y":738,"width":755,"height":12}},{"id":"ea4c747b-e986-4726-8dc8-828cb3e5ef1c","block_type":"box","text":"V.I. Fund Common Stock (no Class II or Class III Shares), BlackRock Large Cap Focus Growth V.I. Fund","page_number":87,"box":{"x":116,"y":753,"width":718,"height":13}},{"id":"91583281-f421-445b-b53f-d0db34bb98e6","block_type":"box","text":"Common Stock (no Class II Shares), BlackRock Managed Volatility V.I. Fund Common Stock (no Class II","page_number":87,"box":{"x":117,"y":769,"width":721,"height":13}},{"id":"4667a985-ae0f-43b1-b536-36542a193d7b","block_type":"box","text":"Shares), BlackRock S&P 500 Index V.I. Fund Common Stock and BlackRock Small Cap Index V.I. Fund","page_number":87,"box":{"x":116,"y":784,"width":715,"height":13}},{"id":"61e1d365-41c1-4333-b410-cd0a5e23cd2b","block_type":"box","text":"Common Stock (no Class II Shares), respectively. The Company may, from time to time, at the sole discretion of","page_number":87,"box":{"x":117,"y":800,"width":761,"height":13}},{"id":"b8cbd2cd-a54d-4bef-a623-3fb087a426a7","block_type":"box","text":"its Board of Directors and without the need to obtain the approval of its shareholders or of Contract owners,","page_number":87,"box":{"x":116,"y":815,"width":738,"height":13}},{"id":"4e2af69c-f487-4f87-86d8-1a845c83e07f","block_type":"box","text":"offer and sell shares of one or more of such classes.","page_number":87,"box":{"x":116,"y":831,"width":344,"height":10}},{"id":"5dc01e9b-5afb-4232-9b36-484fd526975b","block_type":"box","text":"On October 29, 2018, BlackRock International Index V.I. Fund and BlackRock Small Cap Index V.I. Fund","page_number":87,"box":{"x":117,"y":854,"width":745,"height":13}},{"id":"d7ed6302-3d42-429d-9886-e378d930a33e","block_type":"box","text":"acquired all of the assets and assumed certain stated liabilities of International Equity Index Fund and Small","page_number":87,"box":{"x":116,"y":869,"width":747,"height":13}},{"id":"663ec4ac-216b-4fb5-a84e-c60e3a647918","block_type":"box","text":"I-62","page_number":87,"box":{"x":485,"y":917,"width":29,"height":9}},{"id":"7d1ad4e8-f662-4b06-a5c0-b8816b092188","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":87,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0b470791-61e1-417b-ba10-081a09f38bc8","block_type":"box","text":"Cap Equity Index Fund, respectively, each a series of State Farm Variable Product Trust, through the","page_number":88,"box":{"x":117,"y":79,"width":698,"height":13}},{"id":"2cc543fc-e645-40cc-a1f5-d5b6bb17bfb7","block_type":"box","text":"Reorganizations. As a result of the Reorganizations, each Fund adopted the performance and financial history","page_number":88,"box":{"x":116,"y":94,"width":763,"height":13}},{"id":"4e9254e1-cf28-4e83-9559-a91a65a3a0d9","block_type":"box","text":"of its respective Predecessor Fund. The Reorganizations resulted in the Predecessor Funds effectively becoming","page_number":88,"box":{"x":116,"y":110,"width":764,"height":13}},{"id":"0aac52ea-f49c-4ae3-9334-a75611d1dd98","block_type":"box","text":"series of the Company.","page_number":88,"box":{"x":116,"y":125,"width":158,"height":13}},{"id":"c94b2e13-2555-4a08-ba1d-b7ca44d40b07","block_type":"box","text":"All shares of Common Stock have equal voting rights, except that only shares of the respective classes are","page_number":88,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"a8f6d997-5826-4e2d-8932-981b8e37c9b8","block_type":"box","text":"entitled to vote on matters concerning only that class. Pursuant to the Investment Company Act and the rules","page_number":88,"box":{"x":116,"y":164,"width":757,"height":13}},{"id":"869c17af-024c-4ead-bc23-606345860d42","block_type":"box","text":"and regulations thereunder, certain matters approved by a vote of all shareholders of the Company may not","page_number":88,"box":{"x":116,"y":180,"width":748,"height":12}},{"id":"96128dc6-b3cd-49c0-9846-7de8fb9f14c1","block_type":"box","text":"be binding on a class whose shareholders have not approved such matter. Each issued and outstanding share","page_number":88,"box":{"x":116,"y":195,"width":753,"height":13}},{"id":"57167a34-16d9-4582-b333-bacebbe8399e","block_type":"box","text":"of a class is entitled to one vote and to participate equally in dividends and distributions declared with respect","page_number":88,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"f2048629-51b0-4268-8e7e-911618513882","block_type":"box","text":"to such class and in net assets of such class upon liquidation or dissolution remaining after satisfaction of","page_number":88,"box":{"x":116,"y":226,"width":728,"height":13}},{"id":"0a3b370c-83c2-4d9c-a721-3533bf8a4322","block_type":"box","text":"outstanding liabilities. 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Additional","page_number":94,"box":{"x":116,"y":824,"width":754,"height":13}},{"id":"4dc3cd4e-bae2-4e26-a755-bbf310e3e1e9","block_type":"box","text":"copies of each Fund’s annual and semi-annual reports to shareholders and each Fund’s Annual and","page_number":94,"box":{"x":116,"y":839,"width":687,"height":13}},{"id":"a1630f3a-fdb2-4ce6-a1e3-187802e83b4d","block_type":"box","text":"Semi-Annual Financial Statements and Additional Info","page_number":94,"box":{"x":116,"y":854,"width":371,"height":10}},{"id":"768c0714-20d2-4a41-bf59-890979e42927","block_type":"box","text":"formation may be obtained at no charge by telephoning","page_number":94,"box":{"x":487,"y":854,"width":381,"height":13}},{"id":"483ae156-fed8-4f7b-b776-b142df169699","block_type":"box","text":"the Distributor at the telephone number appearing on the front page of this SAI.","page_number":94,"box":{"x":116,"y":869,"width":555,"height":13}},{"id":"70e982be-b75c-4153-9f2b-4300a789e131","block_type":"box","text":"I-69","page_number":94,"box":{"x":485,"y":917,"width":28,"height":9}},{"id":"7b06ec37-7b8d-4e84-b669-fe11695ab28b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":94,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d1f409f9-cc0e-422a-a331-3159aa78eb5a","block_type":"box","text":"PART II","page_number":95,"box":{"x":432,"y":92,"width":149,"height":22}},{"id":"e82c6a4c-4124-4ac2-9a89-2269314ab718","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be","page_number":95,"box":{"x":116,"y":136,"width":734,"height":12}},{"id":"373acf1d-33d2-4676-9542-b952e9f3cab0","block_type":"box","text":"referred to as a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to","page_number":95,"box":{"x":117,"y":152,"width":770,"height":12}},{"id":"a91f7403-b6a8-4dee-ba27-31e0ec7722bc","block_type":"box","text":"as “Municipal Funds” if they invest certain of their assets in municipal investments described below.","page_number":95,"box":{"x":116,"y":167,"width":743,"height":12}},{"id":"ae540bb5-3fcb-46f7-ab72-cf684b21835e","block_type":"box","text":"Each Fund is organized either as a Maryland corporati","page_number":95,"box":{"x":117,"y":193,"width":393,"height":12}},{"id":"9766d590-e9da-4d7f-b8c3-217122f90cd7","block_type":"box","text":"on, a Massachusetts business trust or a Delaware","page_number":95,"box":{"x":511,"y":193,"width":369,"height":11}},{"id":"570e2a54-07b7-4753-b852-ed72103b86a5","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature vari","page_number":95,"box":{"x":116,"y":208,"width":384,"height":12}},{"id":"0e4c4ecd-2d26-4631-9f0e-cc60b08df426","block_type":"box","text":"es. For ease and clarity of presentation, shares of","page_number":95,"box":{"x":501,"y":208,"width":365,"height":12}},{"id":"0a4485cf-873c-400e-96bf-d2a51ecdb017","block_type":"box","text":"common stock and shares of beneficial interest are re","page_number":95,"box":{"x":116,"y":224,"width":390,"height":9}},{"id":"1631a976-6042-43ed-adc8-673fc1913b7a","block_type":"box","text":"ferred to herein as “shares” or “Common Stock,”","page_number":95,"box":{"x":507,"y":224,"width":355,"height":11}},{"id":"87fb4479-1e8a-4a77-ba56-9a6d43268841","block_type":"box","text":"holders of shares of Common Stock are referred to","page_number":95,"box":{"x":117,"y":239,"width":374,"height":10}},{"id":"f9a40374-e80b-4f0b-ad7e-3e9ebee46337","block_type":"box","text":"as “shareholders,” the trustees or directors of each","page_number":95,"box":{"x":492,"y":239,"width":372,"height":12}},{"id":"46683852-000e-4c89-9b30-ada17bc34558","block_type":"box","text":"Fund are referred to as “Directors,” the boards of tru","page_number":95,"box":{"x":117,"y":255,"width":376,"height":11}},{"id":"dafc13a8-32de-48d6-8284-cf5c859931a8","block_type":"box","text":"stees/directors of each Fund are referred to as the","page_number":95,"box":{"x":495,"y":255,"width":370,"height":10}},{"id":"814fc887-137b-4c6d-88c1-512ff442d5a9","block_type":"box","text":"“Board of Directors” or the “Board,” BlackRock A","page_number":95,"box":{"x":116,"y":270,"width":341,"height":12}},{"id":"86c631cc-2a51-45b8-b396-16d17f0d2336","block_type":"box","text":"Advisors, LLC, BlackRock Fund Advisors or their","page_number":95,"box":{"x":457,"y":270,"width":360,"height":12}},{"id":"e22071c3-2476-4945-84cb-11f3e37da3c5","block_type":"box","text":"respective affiliates is the investment adviser or","page_number":95,"box":{"x":117,"y":286,"width":343,"height":12}},{"id":"b473f9bb-6420-4931-85b1-1729551b6e17","block_type":"box","text":"r manager of each Fund and is referred to herein as the","page_number":95,"box":{"x":460,"y":286,"width":404,"height":12}},{"id":"6846f6f2-861c-4f8f-8d89-d0a6db902fda","block_type":"box","text":"“Manager” or “BlackRock,” and the investment","page_number":95,"box":{"x":116,"y":301,"width":337,"height":12}},{"id":"21deb8a6-00d1-4e69-b207-7893c159dbf0","block_type":"box","text":"advisory agreement or","page_number":95,"box":{"x":453,"y":301,"width":169,"height":12}},{"id":"6d3c2753-943a-4580-83a7-e9d46c8bf9bf","block_type":"box","text":"r management agreement","page_number":95,"box":{"x":621,"y":302,"width":190,"height":11}},{"id":"3de4974f-bc0a-4fa1-acae-3f94fd1aa9b0","block_type":"box","text":"applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s Articles of","page_number":95,"box":{"x":116,"y":317,"width":700,"height":12}},{"id":"ccd8eaac-ae2b-4a69-978d-b86343e54c82","block_type":"box","text":"Incorporation or Declaration of Tr","page_number":95,"box":{"x":117,"y":332,"width":240,"height":12}},{"id":"86534a0d-7d70-49f5-8415-06a8a1bb1691","block_type":"box","text":"ust, together with all amendments thereto,","page_number":95,"box":{"x":358,"y":332,"width":304,"height":12}},{"id":"b7b5a347-93ef-4b93-b02e-d85713e78218","block_type":"box","text":"is referred to as its “charter.”","page_number":95,"box":{"x":664,"y":332,"width":215,"height":10}},{"id":"63cf9d93-55bf-4218-9ae5-a9ca6cb00a7c","block_type":"box","text":"The Investment Company Act of 1940, as amended, is","page_number":95,"box":{"x":116,"y":348,"width":402,"height":12}},{"id":"548206d8-df5f-44d0-9f27-38a58af63e56","block_type":"box","text":"referred to herein as the “Investment Company","page_number":95,"box":{"x":519,"y":348,"width":345,"height":12}},{"id":"e6291c16-7681-403e-b015-7122e9bb0aed","block_type":"box","text":"Act.” The Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities","page_number":95,"box":{"x":116,"y":363,"width":767,"height":12}},{"id":"bec25a64-71af-4621-bb2d-4d6d5453162b","block_type":"box","text":"and Exchange Commission is referred to herein as the “Commission” or the “SEC.”","page_number":95,"box":{"x":116,"y":379,"width":609,"height":12}},{"id":"316b9caf-dd93-4c8f-afb4-bb0541c9d8ad","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":95,"box":{"x":117,"y":405,"width":765,"height":12}},{"id":"70de8e6d-479b-4f33-9d51-998517015f0b","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each,","page_number":95,"box":{"x":116,"y":420,"width":770,"height":12}},{"id":"88cdd529-6a2a-4b68-8108-81e4edaf3468","block_type":"box","text":"a “Master LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All","page_number":95,"box":{"x":116,"y":436,"width":734,"height":12}},{"id":"ee35254f-313e-49c0-a3a4-054cca517705","block_type":"box","text":"investments are generally made at the level of the Master Portfolio. This structure is sometimes called","page_number":95,"box":{"x":117,"y":451,"width":761,"height":12}},{"id":"7a94baba-3f59-4917-8069-b7e4c87323db","block_type":"box","text":"a “master/feeder” structure. A Feeder Fund’s investment results will correspond directly to the","page_number":95,"box":{"x":116,"y":467,"width":700,"height":12}},{"id":"5396cba6-622f-4246-937d-02790748f91b","block_type":"box","text":"investment results of the underlying Master Portfolio in which it invests. For simplicity, this SAI uses the","page_number":95,"box":{"x":117,"y":482,"width":770,"height":12}},{"id":"8bb7b23e-4287-4eba-b3de-4b16b6a7d89d","block_type":"box","text":"term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":95,"box":{"x":116,"y":498,"width":503,"height":9}},{"id":"2c4c3f9f-b15a-4100-8bd9-a2141c7875ae","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information","page_number":95,"box":{"x":117,"y":523,"width":747,"height":13}},{"id":"15574588-eda4-4da7-a256-db191069bf8c","block_type":"box","text":"about all funds in the BlackRock-advised fund complex. Certain information contained herein may not","page_number":95,"box":{"x":116,"y":539,"width":757,"height":12}},{"id":"52e310d9-744d-4e68-8930-7210aa40791b","block_type":"box","text":"be relevant to a particular Fund.","page_number":95,"box":{"x":117,"y":555,"width":241,"height":11}},{"id":"4099bfb4-5d43-46c5-a710-01bf0a689ef2","block_type":"box","text":"Investment Risks and Considerations","page_number":95,"box":{"x":119,"y":595,"width":675,"height":23}},{"id":"c618335e-a256-498d-8c56-be67701f0398","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one","page_number":95,"box":{"x":116,"y":634,"width":772,"height":13}},{"id":"26a3208e-5fd1-403c-94f7-9273f0e0cfb7","block_type":"box","text":"or more of the Funds may use, and the risks and considerations associated with those investments","page_number":95,"box":{"x":116,"y":650,"width":740,"height":12}},{"id":"66618c37-8fef-42e2-9b42-a15e757053eb","block_type":"box","text":"and investment strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the","page_number":95,"box":{"x":116,"y":665,"width":685,"height":13}},{"id":"05bb6cf5-ac87-494c-a89a-028bea500294","block_type":"box","text":"“Investment Objective and Policies,” “Investment Objectives and Policies” or “Investment Strategies","page_number":95,"box":{"x":116,"y":681,"width":737,"height":12}},{"id":"14d2cbf4-2674-42ff-b889-2ff21f8564e6","block_type":"box","text":"and Risks of the Fund” section, as applicable, of Part I of this SAI for further information on each","page_number":95,"box":{"x":116,"y":696,"width":714,"height":12}},{"id":"d1c2ce53-f443-4d37-8fa4-cdbb0b6a7b01","block_type":"box","text":"Fund’s investment policies and risks. Information contained in this section about the risks and","page_number":95,"box":{"x":117,"y":712,"width":692,"height":12}},{"id":"8c8607d8-fa23-4ecf-ad13-42216395a4f4","block_type":"box","text":"considerations associated with a Fund’s investments and/or investment strategies applies only to those","page_number":95,"box":{"x":116,"y":728,"width":765,"height":12}},{"id":"b98da55f-d355-4165-9ea6-72e042e88ed1","block_type":"box","text":"Funds specifically identified in Part I of this SAI as making each type of investment or using each","page_number":95,"box":{"x":117,"y":743,"width":716,"height":12}},{"id":"5906a1de-2972-40f9-ae02-21e074138b9a","block_type":"box","text":"investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does","page_number":95,"box":{"x":117,"y":758,"width":764,"height":13}},{"id":"51beb494-3308-4b89-ab4a-e3629cc6aa3d","block_type":"box","text":"not form a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered","page_number":95,"box":{"x":117,"y":774,"width":735,"height":12}},{"id":"2ea65afa-2608-4ca0-bcf6-9a6562baba20","block_type":"box","text":"Fund. Only information that is clearly identified as applicable to a Covered Fund is considered to form a","page_number":95,"box":{"x":117,"y":789,"width":765,"height":13}},{"id":"071de0fc-dea1-458d-8d82-f5260ee65237","block_type":"box","text":"part of that Covered Fund’s SAI.","page_number":95,"box":{"x":117,"y":805,"width":238,"height":12}},{"id":"b699a2db-049f-465f-bf09-2eba7a763fe9","block_type":"box","text":"Asset-Backed Securities.","page_number":95,"box":{"x":116,"y":831,"width":200,"height":9}},{"id":"40567dee-9fc2-4ba7-a287-0640968bd9cd","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans,","page_number":95,"box":{"x":317,"y":831,"width":519,"height":12}},{"id":"b25d7148-1bf9-40ca-b905-93a1cef8ea14","block_type":"box","text":"installment sale contracts, credit card receivables or other assets. Asset-backed securities are “pass","page_number":95,"box":{"x":117,"y":846,"width":749,"height":12}},{"id":"93a75735-3949-4ac8-8c38-1771fb522068","block_type":"box","text":"through” securities, meaning that principal and interest payments — net of expenses — made by the","page_number":95,"box":{"x":116,"y":862,"width":751,"height":12}},{"id":"1cd2455e-27cc-407b-9ff6-fc35135081a2","block_type":"box","text":"borrower on the underlying assets (such as credit card receivables) are passed through to a Fund. The","page_number":95,"box":{"x":117,"y":877,"width":768,"height":12}},{"id":"73aa790d-6193-4681-92de-0e1ee3e077b1","block_type":"box","text":"II-1","page_number":95,"box":{"x":489,"y":909,"width":20,"height":9}},{"id":"2e8eecbe-66be-4009-ae0f-aea0be10499c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":95,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fb1451b4-74ec-4b57-b35e-c5390389a92d","block_type":"box","text":"value of asset-backed securities, like that of traditional fixed-income securities, typically increases","page_number":96,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"49b08c5e-78ac-4f3b-9825-b7ee46f107ec","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, asset-backed securities differ","page_number":96,"box":{"x":116,"y":102,"width":770,"height":12}},{"id":"21de2118-8020-46e8-b381-c3952f33110b","block_type":"box","text":"from traditional fixed-income securities because of their potential for prepayment. The price paid by a","page_number":96,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"76c7bbcf-01a9-4316-b363-ad87f635af79","block_type":"box","text":"Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and the","page_number":96,"box":{"x":117,"y":134,"width":767,"height":12}},{"id":"e779efde-f120-4f5f-b1dc-09060987a872","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of","page_number":96,"box":{"x":116,"y":149,"width":709,"height":12}},{"id":"285081ed-20c6-493b-a327-acf26571e2a3","block_type":"box","text":"prepayment of the underlying assets. In a period of declining interest rates, borrowers may prepay the","page_number":96,"box":{"x":117,"y":165,"width":761,"height":12}},{"id":"686f5629-af37-404a-bb64-d0659c0e38b0","block_type":"box","text":"underlying assets more quickly than anticipated, thereby reducing the yield to maturity and the average","page_number":96,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"e6adef19-a0d0-478a-b812-4abc3caf1d10","block_type":"box","text":"life of the asset-backed securities. Moreover, when a Fund reinvests the proceeds of a prepayment in","page_number":96,"box":{"x":117,"y":196,"width":758,"height":12}},{"id":"10390a16-bf44-46af-9597-e64837be8f7d","block_type":"box","text":"these circumstances, it will likely receive a rate of interest that is lower than the rate on the security that","page_number":96,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"1189f9b7-a18a-41e2-be62-72fd75ca5778","block_type":"box","text":"was prepaid. To the extent that a Fund purchases asset-backed securities at a premium, prepayments","page_number":96,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"4c73dad5-1cf8-4007-b391-ab6bf1ae28b7","block_type":"box","text":"may result in a loss to the extent of the premium paid. If a Fund buys such securities at a discount,","page_number":96,"box":{"x":117,"y":242,"width":736,"height":12}},{"id":"883ebc72-0e60-4b00-9139-5527d897957a","block_type":"box","text":"both scheduled payments and unscheduled prepayments will increase current and total returns and","page_number":96,"box":{"x":117,"y":258,"width":742,"height":12}},{"id":"5dde8720-9409-4e76-91ae-02915c6fba2c","block_type":"box","text":"unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":96,"box":{"x":117,"y":273,"width":738,"height":12}},{"id":"efea19c2-d56f-409a-9ca8-27af7c379033","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the","page_number":96,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"2bdfb6fe-6472-458a-ab18-ff6dae9906bc","block_type":"box","text":"underlying assets may occur at a slower than expected rate, creating maturity extension risk. This","page_number":96,"box":{"x":117,"y":304,"width":730,"height":12}},{"id":"47b0b311-cf5c-47d3-b45f-08f345b90b89","block_type":"box","text":"particular risk may effectively change a security that was considered short- or intermediate-term at the","page_number":96,"box":{"x":117,"y":320,"width":762,"height":12}},{"id":"e877b0b7-8dcd-41a8-8cee-6d2b56e20c99","block_type":"box","text":"time of purchase into a longer term security. Since the value of longer-term securities generally","page_number":96,"box":{"x":116,"y":335,"width":710,"height":12}},{"id":"f8ea8996-25c6-43e7-be48-d9c59507bea6","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than does the value of shorter-term","page_number":96,"box":{"x":116,"y":351,"width":736,"height":12}},{"id":"23a3e8b7-2637-404c-bc22-fe26178dbdc1","block_type":"box","text":"securities, maturity extension risk could increase the volatility of the Fund. When interest rates decline,","page_number":96,"box":{"x":116,"y":366,"width":766,"height":12}},{"id":"0fe0ad60-5c2a-4ec6-af88-e5db4f908f45","block_type":"box","text":"the value of an asset-backed security with prepayment features may not increase as much as that of","page_number":96,"box":{"x":116,"y":382,"width":751,"height":12}},{"id":"2beae9b2-c5a3-4c4e-8953-e9f5361ef45f","block_type":"box","text":"other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate","page_number":96,"box":{"x":116,"y":397,"width":767,"height":12}},{"id":"5dffbcbe-f18d-468c-b6ce-35e0ded9cecb","block_type":"box","text":"or retard prepayments and thus affect maturities.","page_number":96,"box":{"x":116,"y":413,"width":368,"height":12}},{"id":"53eedd48-a831-4925-9255-b1b4a56df1d1","block_type":"box","text":"Asset-Based Securities.","page_number":96,"box":{"x":116,"y":444,"width":190,"height":9}},{"id":"1254d96a-2b0f-4a36-adc2-3e433e6368b1","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the","page_number":96,"box":{"x":307,"y":444,"width":548,"height":12}},{"id":"57d0ca47-0abf-4587-ab09-7d645ad39ddd","block_type":"box","text":"principal amount, redemption terms or conversion terms of which are related to the market price of","page_number":96,"box":{"x":117,"y":459,"width":734,"height":12}},{"id":"169a694f-cf28-4504-8783-0cad5dc91e7e","block_type":"box","text":"some natural resource asset such as gold bullion. These securities are referred to as “asset-based","page_number":96,"box":{"x":116,"y":475,"width":737,"height":12}},{"id":"851fd932-b274-4436-a914-451c46b2fb94","block_type":"box","text":"securities.” A Fund will purchase only asset-based securities that are rated, or are issued by issuers","page_number":96,"box":{"x":116,"y":490,"width":746,"height":12}},{"id":"3dcad1ee-f728-4212-a8d3-367bc895e694","block_type":"box","text":"that have outstanding debt obligations rated, investment grade (for example, AAA, AA, A or BBB by","page_number":96,"box":{"x":116,"y":506,"width":744,"height":12}},{"id":"019f2ed6-3849-4ccf-80b2-06b224d05741","block_type":"box","text":"S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by Moody’s Investors Service, Inc.","page_number":96,"box":{"x":116,"y":521,"width":719,"height":12}},{"id":"80eff16e-2aa7-4fd6-9717-a98ef42cdecd","block_type":"box","text":"(“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by issuers that the","page_number":96,"box":{"x":117,"y":537,"width":721,"height":12}},{"id":"5ea96a7b-9831-4d3a-af9e-2b5f4ecc1d96","block_type":"box","text":"Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":96,"box":{"x":117,"y":552,"width":733,"height":12}},{"id":"8682122b-ee19-4a2d-8808-add4e17a0f58","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and","page_number":96,"box":{"x":117,"y":568,"width":766,"height":12}},{"id":"04fd3d41-79b1-457e-acb2-62e95a7aa878","block_type":"box","text":"may be more likely to be downgraded than securities rated in the three highest rating categories. If an","page_number":96,"box":{"x":117,"y":583,"width":759,"height":12}},{"id":"2f92477d-e24a-42e7-a2d9-57e4751ff2a8","block_type":"box","text":"asset-based security is backed by a bank letter of credit or other similar facility, the Manager may take","page_number":96,"box":{"x":116,"y":599,"width":764,"height":12}},{"id":"d8395792-652d-4452-9f63-1f4e6fb53061","block_type":"box","text":"such backing into account in determining the creditworthiness of the issuer. While the market prices for","page_number":96,"box":{"x":116,"y":614,"width":769,"height":12}},{"id":"05c0d81e-9d64-4550-8b93-a72c6ba7b1ff","block_type":"box","text":"an asset-based security and the related natural resource asset generally are expected to move in the","page_number":96,"box":{"x":116,"y":630,"width":756,"height":12}},{"id":"30f25bc5-ff81-4505-bc1f-cac6c1502746","block_type":"box","text":"same direction, there may not be perfect correlation in the two price movements. Asset-based","page_number":96,"box":{"x":116,"y":645,"width":702,"height":12}},{"id":"0dc39cc8-26c6-490b-bb7f-e2fdf36ba6be","block_type":"box","text":"securities may not be secured by a security interest in or claim on the underlying natural resource","page_number":96,"box":{"x":116,"y":661,"width":723,"height":12}},{"id":"078939cc-94fb-462f-9e6d-93dee200ec7f","block_type":"box","text":"asset. The asset-based securities in which a Fund may invest may bear interest or pay preferred","page_number":96,"box":{"x":116,"y":676,"width":716,"height":12}},{"id":"11c6d711-b113-4d40-abe3-3dd94e43f53c","block_type":"box","text":"dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be","page_number":96,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"745e1d94-d943-46b9-8613-b134649d7c8f","block_type":"box","text":"payable at maturity in cash at the stated principal amount or, at the option of the holder, directly in a","page_number":96,"box":{"x":117,"y":707,"width":738,"height":12}},{"id":"db6f1499-b37a-4b15-ad8c-31a41b82e30b","block_type":"box","text":"stated amount of the asset to which it is related. In such instance, because no Fund presently intends","page_number":96,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"fecf68e8-7bb1-483f-a40a-d360c91ddd7e","block_type":"box","text":"to invest directly in natural resource assets, a Fund would sell the asset-based security in the","page_number":96,"box":{"x":116,"y":738,"width":691,"height":12}},{"id":"69c6859b-9e69-490c-a7d0-2e4fd670480a","block_type":"box","text":"secondary market, to the extent one exists, prior to maturity if the value of the stated amount of the","page_number":96,"box":{"x":116,"y":754,"width":733,"height":12}},{"id":"bb56d64c-0f67-4b0f-a703-b14f757bf36c","block_type":"box","text":"asset exceeds the stated principal amount and thereby realize the appreciation in the underlying asset.","page_number":96,"box":{"x":116,"y":769,"width":763,"height":12}},{"id":"c25ca070-be90-4051-a3b3-149d56f9f0a3","block_type":"box","text":"Precious Metal-Related Securities.","page_number":96,"box":{"x":116,"y":800,"width":256,"height":10}},{"id":"f6ff2535-b2e6-47d8-85bf-2edc5c3dce23","block_type":"box","text":"A Fund may invest in the equity and other securities of companies","page_number":96,"box":{"x":378,"y":800,"width":491,"height":12}},{"id":"cdbead11-b54b-4213-96d8-cbf2dc32692e","block_type":"box","text":"that explore for, extract, process or deal in precious metals (","page_number":96,"box":{"x":116,"y":816,"width":447,"height":12}},{"id":"4150363a-146b-4804-ae78-106ccd3262d7","block_type":"box","text":"e.g.","page_number":96,"box":{"x":564,"y":818,"width":26,"height":10}},{"id":"b3388cfb-56de-44ce-9e1d-9cd1631e1422","block_type":"box","text":", gold, silver and platinum), and in","page_number":96,"box":{"x":593,"y":816,"width":249,"height":12}},{"id":"a6176e03-7c19-4e80-ac7e-69685564f850","block_type":"box","text":"asset-based securities indexed to the value of such metals. Such securities may be purchased when","page_number":96,"box":{"x":116,"y":831,"width":752,"height":12}},{"id":"08eeddd2-e67a-45ee-9dac-50071b8f6ab5","block_type":"box","text":"they are believed to be attractively priced in relation to the value of a company’s precious metal-related","page_number":96,"box":{"x":116,"y":847,"width":769,"height":12}},{"id":"762ccd92-f746-49ab-bf55-60652cd46403","block_type":"box","text":"assets or when the values of precious metals are expected to benefit from inflationary pressure or","page_number":96,"box":{"x":116,"y":862,"width":731,"height":12}},{"id":"43bdd537-bdaf-4f20-b9e0-eb8e61386119","block_type":"box","text":"other economic, political or financial uncertainty or instability. Based on historical experience, during","page_number":96,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"c24f0072-744c-428e-a933-bf82beee18b7","block_type":"box","text":"II-2","page_number":96,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"fe193a56-ca67-46a4-9a44-a13c8bddc58f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":96,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"76467a49-9595-4f9e-beed-36ce15d024c6","block_type":"box","text":"periods of economic or financial instability the securities of companies involved in precious metals may","page_number":97,"box":{"x":117,"y":87,"width":766,"height":12}},{"id":"9138aeb6-f6d5-4cca-b381-55685495c899","block_type":"box","text":"be subject to extreme price fluctuations, reflecting the high volatility of precious metal prices during","page_number":97,"box":{"x":117,"y":102,"width":736,"height":13}},{"id":"59e12298-407e-4a8a-9ce9-6f8d40ecff2a","block_type":"box","text":"such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":97,"box":{"x":116,"y":118,"width":721,"height":12}},{"id":"aeca12c2-92db-49ee-9dc2-b9246ec9713f","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such","page_number":97,"box":{"x":117,"y":134,"width":754,"height":12}},{"id":"b5db9208-3f53-43c8-a45c-5a0a7ada1293","block_type":"box","text":"companies. The major producers of gold include the Republic of South Africa, Russia, Canada, the","page_number":97,"box":{"x":116,"y":149,"width":739,"height":12}},{"id":"76fbf94d-d1b3-4589-9247-4e93316500ac","block_type":"box","text":"United States, Brazil and Australia. Sales of gold by Russia are largely unpredictable and often relate","page_number":97,"box":{"x":117,"y":165,"width":754,"height":12}},{"id":"466f535b-8adb-4974-90d4-cf70b09748dd","block_type":"box","text":"to political and economic considerations rather than to market forces. Economic, financial, social and","page_number":97,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"80a029fc-9bce-425d-b66d-975227661a87","block_type":"box","text":"political factors within South Africa may significantly affect South African gold production.","page_number":97,"box":{"x":117,"y":196,"width":663,"height":12}},{"id":"60279980-35c1-46fb-9622-9a3f7e9a56e1","block_type":"box","text":"Borrowing and Leverage.","page_number":97,"box":{"x":116,"y":227,"width":201,"height":12}},{"id":"76cd7727-25dc-4886-8ef1-f17d5402f366","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or","page_number":97,"box":{"x":318,"y":227,"width":517,"height":12}},{"id":"e9f9e78d-99da-41de-82e5-53f4cb776184","block_type":"box","text":"emergency purposes, including to meet redemptions or to settle securities transactions. Certain Funds","page_number":97,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"701dbd9c-c569-4cd4-9cd1-c759029a992b","block_type":"box","text":"will not purchase securities at any time when borrowings exceed 5% of their total assets, except (a) to","page_number":97,"box":{"x":116,"y":258,"width":761,"height":12}},{"id":"24e1a48f-cd0d-4f04-b40e-14548803ed1e","block_type":"box","text":"honor prior commitments or (b) to exercise subscription rights when outstanding borrowings have been","page_number":97,"box":{"x":117,"y":273,"width":768,"height":12}},{"id":"4bcdd93c-564a-42f1-9e3f-9dfc54d2be28","block_type":"box","text":"obtained exclusively for settlements of other securities transactions.","page_number":97,"box":{"x":116,"y":289,"width":508,"height":12}},{"id":"42e8bc31-c2a9-43f5-9635-cb93ba1d7dea","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s","page_number":97,"box":{"x":117,"y":320,"width":740,"height":12}},{"id":"2cce870e-4b57-4c07-8f69-1c7529be9a90","block_type":"box","text":"Prospectus. The purchase of securities while borrowings are outstanding will have the effect of","page_number":97,"box":{"x":117,"y":335,"width":700,"height":12}},{"id":"2305953c-a92d-4ed2-b047-3cf7d7006502","block_type":"box","text":"leveraging the Fund. Such leveraging increases the Fund’s exposure to capital risk, and borrowed funds","page_number":97,"box":{"x":117,"y":351,"width":769,"height":12}},{"id":"1729fd4f-6d4b-44b6-a176-6ac4969a6d5f","block_type":"box","text":"are subject to interest costs that will reduce net income. The use of leverage by a Fund creates an","page_number":97,"box":{"x":116,"y":366,"width":727,"height":12}},{"id":"d0b27bae-cc44-4058-bd5e-0d07021515a1","block_type":"box","text":"opportunity for greater total return, but, at the same time, creates special risks. For example, leveraging","page_number":97,"box":{"x":116,"y":382,"width":765,"height":12}},{"id":"f858069d-3d99-43c8-8cae-a5ac32a5ebd9","block_type":"box","text":"may exaggerate changes in the net asset value (“NAV”) of Fund shares and in the yield on the Fund’s","page_number":97,"box":{"x":117,"y":397,"width":751,"height":12}},{"id":"505a4d2d-3946-4768-8da9-58a90bf7ee1b","block_type":"box","text":"portfolio. Although the principal of such borrowings will be fixed, the Fund’s assets may change in value","page_number":97,"box":{"x":117,"y":413,"width":764,"height":12}},{"id":"454f4151-de0d-48df-a275-509ff47fb669","block_type":"box","text":"during the time the borrowings are outstanding. Borrowings will create interest expenses for the Fund","page_number":97,"box":{"x":116,"y":428,"width":749,"height":12}},{"id":"65c4ade4-de57-4ab8-83fd-6dd5b06071e0","block_type":"box","text":"that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":97,"box":{"x":116,"y":444,"width":769,"height":12}},{"id":"494c58a6-3ebe-4b8d-b948-457eebd94d39","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the","page_number":97,"box":{"x":116,"y":459,"width":738,"height":12}},{"id":"cf6e587b-95d1-4a52-8c01-f551d9d67f52","block_type":"box","text":"Fund will have to pay on the borrowings, the Fund’s return will be greater than if leverage had not been","page_number":97,"box":{"x":117,"y":475,"width":761,"height":12}},{"id":"b4d639e3-dc2b-45a9-a604-bffea3a46bf9","block_type":"box","text":"used. Conversely, if the income or capital appreciation from the securities purchased with such","page_number":97,"box":{"x":117,"y":490,"width":701,"height":12}},{"id":"47f6b27c-d5c6-4b0f-9eaa-f2edcf2dd016","block_type":"box","text":"borrowed funds is not sufficient to cover the cost of borrowing, the return to the Fund will be less than if","page_number":97,"box":{"x":117,"y":506,"width":761,"height":12}},{"id":"83491a47-d4d0-422c-9b40-a249662efc83","block_type":"box","text":"leverage had not been used and, therefore, the amount available for distribution to shareholders as","page_number":97,"box":{"x":117,"y":521,"width":732,"height":12}},{"id":"1b0bde41-1708-4fe1-81fb-cf63a7725437","block_type":"box","text":"dividends will be reduced. In the latter case, the Manager in its best judgment nevertheless may","page_number":97,"box":{"x":116,"y":537,"width":709,"height":12}},{"id":"4083159b-77c8-4b9e-a55a-eb12857ff73f","block_type":"box","text":"determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":97,"box":{"x":116,"y":552,"width":699,"height":12}},{"id":"b5a529fc-4964-4cbc-8780-bd1057fe4594","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":97,"box":{"x":116,"y":568,"width":677,"height":12}},{"id":"a25442a7-3364-42ce-91de-6b1e32a51903","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit","page_number":97,"box":{"x":117,"y":599,"width":727,"height":12}},{"id":"8583ee22-bdc9-4cab-9d05-a4d8146956ba","block_type":"box","text":"agreements relating to asset coverage, portfolio composition requirements and other matters. It is not","page_number":97,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"b17a4ba9-cddc-49ab-af8c-69b3b5579281","block_type":"box","text":"anticipated that observance of such covenants would impede the Manager from managing a Fund’s","page_number":97,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"50ba3e7e-45c4-4431-9ff1-836b15b477e7","block_type":"box","text":"portfolio in accordance with the Fund’s investment objectives and policies. However, a breach of any","page_number":97,"box":{"x":117,"y":645,"width":751,"height":12}},{"id":"916e67bd-065b-4c69-83a7-300baaf7ab12","block_type":"box","text":"such covenants not cured within the specified cure period may result in acceleration of outstanding","page_number":97,"box":{"x":116,"y":661,"width":732,"height":12}},{"id":"d6e14121-04e0-4bcc-ba10-fbf9b96204f9","block_type":"box","text":"indebtedness and require the Fund to dispose of portfolio investments at a time when it may be","page_number":97,"box":{"x":117,"y":676,"width":706,"height":12}},{"id":"3fff8352-c922-444b-b1b2-c8a4499349a2","block_type":"box","text":"disadvantageous to do so.","page_number":97,"box":{"x":116,"y":692,"width":195,"height":12}},{"id":"77a18723-2bb9-4f24-9690-e650d6dee465","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such","page_number":97,"box":{"x":117,"y":723,"width":699,"height":12}},{"id":"9492140a-ef4c-4cec-bbf1-d035adf398ff","block_type":"box","text":"borrowings are no less favorable than those available from comparable sources of funds in the","page_number":97,"box":{"x":117,"y":738,"width":701,"height":12}},{"id":"5c5b4747-a1ee-4500-af60-81229aac90ce","block_type":"box","text":"marketplace.","page_number":97,"box":{"x":117,"y":754,"width":94,"height":12}},{"id":"be8613ac-7c9a-4b75-9850-8d997d44ad7f","block_type":"box","text":"Cash Management.","page_number":97,"box":{"x":117,"y":785,"width":151,"height":12}},{"id":"48b1c5b7-6548-49a1-862f-fd397372cfed","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide","page_number":97,"box":{"x":275,"y":785,"width":567,"height":12}},{"id":"413e9266-2287-481a-be0d-677e2b66e865","block_type":"box","text":"liquidity necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if","page_number":97,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"d472dee1-f12b-4f50-b4d4-9fa390366ea2","block_type":"box","text":"considered appropriate in the opinion of the Manager, a portion of a Fund’s assets may be invested in","page_number":97,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"f62c9774-6053-450b-a5a1-48b3ffe41b53","block_type":"box","text":"certain types of instruments with remaining maturities of 397 days or less for liquidity purposes. Such","page_number":97,"box":{"x":116,"y":831,"width":754,"height":12}},{"id":"ff12ac39-6bc1-458c-8e85-1f2d2b8e73b9","block_type":"box","text":"instruments would consist of: (i) obligations of the U.S. Government, its agencies, instrumentalities,","page_number":97,"box":{"x":117,"y":847,"width":740,"height":12}},{"id":"35c4f7ee-c2c3-4765-9797-5d161e948cd6","block_type":"box","text":"authorities or political subdivisions (“U.S. Government Securities”); (ii) other fixed-income securities","page_number":97,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"c55c1e52-0691-4a68-8502-dae7200d9aa1","block_type":"box","text":"rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of comparable quality in the","page_number":97,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"1a06ca58-ac38-48f2-a1db-3e7fe97df4a5","block_type":"box","text":"II-3","page_number":97,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"cd5a8282-459c-4e61-ac8a-fb6e1eeea3ad","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":97,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ed8cd3ed-3c87-44dc-ac37-b9dbf2055cb1","block_type":"box","text":"opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable certificates of","page_number":98,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"1b3046db-6d55-4705-89af-9f8d5b3398c4","block_type":"box","text":"deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":98,"box":{"x":116,"y":102,"width":730,"height":13}},{"id":"00c764e5-dae7-4848-82fb-7564ea4c0387","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the","page_number":98,"box":{"x":117,"y":118,"width":718,"height":12}},{"id":"4a81d806-f67a-49fd-af39-8b9e3bd72eb5","block_type":"box","text":"issuer’s parent must have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or","page_number":98,"box":{"x":117,"y":134,"width":752,"height":12}},{"id":"a346798f-726b-43ec-b1c6-4cba759cdd35","block_type":"box","text":"outstanding commercial paper, bank obligations or other short-term obligations rated Prime-1 by","page_number":98,"box":{"x":116,"y":149,"width":719,"height":12}},{"id":"775a24ec-633d-4512-8761-ad655ccd64a2","block_type":"box","text":"Moody’s or A-1 by S&P; or, if no such ratings are available, the instrument must be of comparable","page_number":98,"box":{"x":117,"y":165,"width":731,"height":12}},{"id":"fc7358e0-a7a1-4c4d-81fd-300387e12923","block_type":"box","text":"quality in the opinion of the Manager. For more information on money market instruments, see “Money","page_number":98,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"25bd53da-772d-4b7c-9ae0-e1d6f6c8dcdc","block_type":"box","text":"Market Securities” below.","page_number":98,"box":{"x":117,"y":196,"width":192,"height":9}},{"id":"0c402a92-3d9a-4aaf-a7ad-6741892d27e4","block_type":"box","text":"Collateralized Debt Obligations.","page_number":98,"box":{"x":117,"y":227,"width":251,"height":12}},{"id":"ee299268-385b-434b-8d55-cd1c9bd23a89","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations","page_number":98,"box":{"x":369,"y":227,"width":444,"height":12}},{"id":"7498b698-a731-48a7-8434-5d454164bee0","block_type":"box","text":"(“CDOs”), which include collateralized bond obligations (“CBOs”), collateralized loan obligations","page_number":98,"box":{"x":117,"y":242,"width":713,"height":12}},{"id":"d8d89371-d201-411a-a2ef-0f17e0b8e2b6","block_type":"box","text":"(“CLOs”) and other similarly structured securities. CDOs are types of asset-backed securities. A CBO","page_number":98,"box":{"x":117,"y":258,"width":756,"height":12}},{"id":"900fbc52-f910-4320-9220-9616fae485f7","block_type":"box","text":"is ordinarily issued by a trust or other special purpose entity (“SPE”) and is typically backed by a","page_number":98,"box":{"x":117,"y":273,"width":716,"height":12}},{"id":"c946e6fd-e73a-4123-9131-0650c73a78a8","block_type":"box","text":"diversified pool of fixed-income securities (which may include high risk, below investment grade","page_number":98,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"7eed72d2-a90d-4ed9-ba47-d98a436b8a72","block_type":"box","text":"securities) held by such issuer. A CLO is ordinarily issued by a trust or other SPE and is typically","page_number":98,"box":{"x":116,"y":304,"width":722,"height":12}},{"id":"fe0b3566-664a-437f-b3a5-e1fffc7fcecd","block_type":"box","text":"collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior","page_number":98,"box":{"x":116,"y":320,"width":729,"height":12}},{"id":"f81af910-021c-4895-9ec0-52f0f424aad9","block_type":"box","text":"secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be","page_number":98,"box":{"x":116,"y":335,"width":756,"height":12}},{"id":"debe8e49-9eb8-4768-be5b-3528e38c0657","block_type":"box","text":"rated below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO","page_number":98,"box":{"x":117,"y":351,"width":757,"height":12}},{"id":"e09e0a0a-af9f-44ad-a24f-2ef1201a9bec","block_type":"box","text":"organized outside of the United States may not be deemed to be foreign securities if the CLO is","page_number":98,"box":{"x":116,"y":366,"width":715,"height":12}},{"id":"af9066f5-e4da-4a96-ba60-d477d908c1cb","block_type":"box","text":"collateralized by a pool of loans, a substantial portion of which are U.S. loans. Although certain CDOs","page_number":98,"box":{"x":116,"y":382,"width":758,"height":12}},{"id":"a1e01713-1fb8-4dc1-bf99-db5a22c74b2a","block_type":"box","text":"may benefit from credit enhancement in the form of a senior-subordinate structure, over","page_number":98,"box":{"x":117,"y":397,"width":655,"height":12}},{"id":"6db9cffd-54a0-45de-900b-e26c1274027c","block_type":"box","text":"collateralization or bond insurance, such enhancement may not always be present, and may fail to","page_number":98,"box":{"x":116,"y":413,"width":735,"height":12}},{"id":"599a2a26-11f5-43b5-b750-636ab4239197","block_type":"box","text":"protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may use","page_number":98,"box":{"x":117,"y":428,"width":713,"height":12}},{"id":"3f635e99-3aea-4224-ac2c-ae32fcd41fd3","block_type":"box","text":"derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly,","page_number":98,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"b4295e11-b97a-40ca-b0a8-853603bf6fd5","block_type":"box","text":"which entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge","page_number":98,"box":{"x":116,"y":459,"width":742,"height":12}},{"id":"0d334b48-bf98-477d-8c0c-9c740ca3d0d8","block_type":"box","text":"management fees and administrative expenses, which are in addition to those of a Fund.","page_number":98,"box":{"x":117,"y":475,"width":664,"height":12}},{"id":"7a07b42c-0a3e-4954-be32-0259ce67e73e","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called","page_number":98,"box":{"x":117,"y":506,"width":724,"height":12}},{"id":"dc39b6c3-c4b7-481d-b0d2-6ee0a02aacba","block_type":"box","text":"tranches, varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss","page_number":98,"box":{"x":116,"y":521,"width":765,"height":12}},{"id":"07913f48-c922-4ae3-8cdc-77435bf64329","block_type":"box","text":"from defaults from the bonds or loans in the SPE and serves to protect the other, more senior tranches","page_number":98,"box":{"x":116,"y":537,"width":768,"height":12}},{"id":"8052d4cc-b77b-4f35-bbf1-e28e97eecc2d","block_type":"box","text":"from default (though such protection is not complete). Since it is partially protected from defaults, a","page_number":98,"box":{"x":116,"y":552,"width":737,"height":12}},{"id":"8e7830e9-3843-4bf2-9db5-05b82025a15c","block_type":"box","text":"senior tranche from a CBO or CLO typically has higher ratings and lower yields than its underlying","page_number":98,"box":{"x":116,"y":568,"width":733,"height":12}},{"id":"6e06b817-8675-4fdd-a23d-475218e8dd1f","block_type":"box","text":"securities, and may be rated investment grade. Despite the protection from the equity tranche, CBO or","page_number":98,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"bb319a96-b300-4e71-9aa8-3cca7e6bc2bc","block_type":"box","text":"CLO tranches can experience substantial losses due to actual defaults, downgrades of the underlying","page_number":98,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"ddbf34a7-69fa-4136-adf5-3e9f7edd1dc0","block_type":"box","text":"collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage tests,","page_number":98,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"80761419-879a-4af7-b5f1-7e43661607be","block_type":"box","text":"increased sensitivity to defaults due to collateral default and disappearance of protecting tranches,","page_number":98,"box":{"x":117,"y":630,"width":734,"height":12}},{"id":"7f9d3fd6-a322-495a-ba43-7a76ea6f0aa9","block_type":"box","text":"market anticipation of defaults as well as investor aversion to CBO or CLO securities as a class.","page_number":98,"box":{"x":117,"y":645,"width":716,"height":12}},{"id":"2f7957ae-3d5b-431a-97fc-7be5ff779c5a","block_type":"box","text":"Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the form","page_number":98,"box":{"x":117,"y":661,"width":757,"height":12}},{"id":"46a6e86b-31ed-4f02-9690-8124920afc15","block_type":"box","text":"of obligations of the same type rather than cash), which involves continued exposure to default risk","page_number":98,"box":{"x":116,"y":676,"width":734,"height":12}},{"id":"b2fece2e-bc77-46fb-bc34-38930431a2b7","block_type":"box","text":"with respect to such payments.","page_number":98,"box":{"x":116,"y":692,"width":229,"height":12}},{"id":"2654014e-feb2-406f-93aa-705033e55ae2","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the","page_number":98,"box":{"x":116,"y":723,"width":728,"height":12}},{"id":"ba87f25e-b328-4183-afdf-99905845002b","block_type":"box","text":"class of the CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately","page_number":98,"box":{"x":116,"y":738,"width":712,"height":12}},{"id":"214d3cd3-ce55-46bf-b3be-f66b658f570a","block_type":"box","text":"offered and sold, and thus are not registered under the securities laws. However, an active dealer","page_number":98,"box":{"x":116,"y":754,"width":725,"height":12}},{"id":"3c9cf0c6-d9bb-4ac5-add8-c0a9f730e38c","block_type":"box","text":"market may exist for CDOs, allowing a CDO to qualify for Rule 144A transactions. In addition to the","page_number":98,"box":{"x":117,"y":769,"width":736,"height":12}},{"id":"b5274a45-fb81-496c-885d-9276fbe066cd","block_type":"box","text":"normal risks associated with fixed-income securities and asset-backed securities generally discussed","page_number":98,"box":{"x":117,"y":785,"width":750,"height":12}},{"id":"e5a4f38a-e5d4-4b2f-82d0-4de219baae14","block_type":"box","text":"elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the possibility that","page_number":98,"box":{"x":116,"y":800,"width":737,"height":12}},{"id":"add929c5-ecd2-4822-9e14-411769c3844d","block_type":"box","text":"distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":98,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"909a5f5a-b19b-49af-8158-9d011e5c37f3","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally","page_number":98,"box":{"x":117,"y":831,"width":708,"height":12}},{"id":"f667574c-f85f-4fbf-acf1-60ed786898ac","block_type":"box","text":"recognized statistical rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that","page_number":98,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"dd57d6c3-d0c2-4f26-98b5-258be56c3eb3","block_type":"box","text":"are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal","page_number":98,"box":{"x":116,"y":862,"width":736,"height":12}},{"id":"182c0f09-8c58-48ba-abe4-e0dd0464affb","block_type":"box","text":"documents could lead to disputes among investors regarding the characterization of proceeds; (v) the","page_number":98,"box":{"x":116,"y":878,"width":760,"height":12}},{"id":"9c3d0dc8-e4cf-4bbb-a93e-313894525a00","block_type":"box","text":"II-4","page_number":98,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"4ff45a71-0b7c-4149-9fe1-c71994327a18","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":98,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9f22d715-58a0-4262-94bb-07b3202b382c","block_type":"box","text":"investment return achieved by the Fund could be significantly different than those predicted by financial","page_number":99,"box":{"x":117,"y":87,"width":771,"height":12}},{"id":"ef49f935-40cd-4fd8-8c68-e253221412ea","block_type":"box","text":"models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale”","page_number":99,"box":{"x":117,"y":102,"width":765,"height":13}},{"id":"3d558d9f-3a85-4826-a931-af59a4ffd2ae","block_type":"box","text":"liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager may","page_number":99,"box":{"x":117,"y":118,"width":756,"height":12}},{"id":"e40aaa30-d20a-4cab-bdc4-7bcaae463cfa","block_type":"box","text":"perform poorly.","page_number":99,"box":{"x":117,"y":134,"width":117,"height":12}},{"id":"829a3dc2-de3a-47ff-ae5d-c078e134d277","block_type":"box","text":"Commercial Paper.","page_number":99,"box":{"x":117,"y":165,"width":150,"height":11}},{"id":"b830e5c9-0fec-4fd6-89a9-52de38832ad3","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable","page_number":99,"box":{"x":268,"y":165,"width":607,"height":12}},{"id":"228399aa-f667-4010-a1ba-cb27b5bc2da1","block_type":"box","text":"by each Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance","page_number":99,"box":{"x":117,"y":180,"width":760,"height":12}},{"id":"4b87973c-d598-498b-8778-f496ef4b0036","block_type":"box","text":"on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities","page_number":99,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"533c89d0-68f3-4eed-b136-94b1ee9031b5","block_type":"box","text":"Act. Section 4(a)(2) paper is restricted as to disposition under the Federal securities laws, and is","page_number":99,"box":{"x":116,"y":211,"width":719,"height":12}},{"id":"d0ee59b2-6cb7-446d-a1a3-85c25a3d2dde","block_type":"box","text":"frequently sold (and resold) to institutional investors such as the Fund through or with the assistance of","page_number":99,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"30d30c31-57f0-44f3-842c-8ad9220deee4","block_type":"box","text":"investment dealers who make a market in the Section 4(a)(2) paper, thereby providing liquidity. Certain","page_number":99,"box":{"x":117,"y":242,"width":769,"height":12}},{"id":"6c0c5ea5-774e-4c98-ae7c-7a1cfdfa9d35","block_type":"box","text":"transactions in Section 4(a)(2) paper may qualify for the registration exemption provided in Rule 144A","page_number":99,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"07f26ccb-f537-4133-9303-59f013ab52a2","block_type":"box","text":"under the Securities Act. Most Funds can purchase commercial paper rated (at the time of purchase)","page_number":99,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"ac9f9ac8-8661-47ed-b3c9-8b33070c3107","block_type":"box","text":"“A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub-adviser,","page_number":99,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"f95103b7-01ea-480f-80a2-64efc7c98a91","block_type":"box","text":"“high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":99,"box":{"x":116,"y":304,"width":675,"height":12}},{"id":"79026d89-cdf1-4afa-8118-71b57b68ceaf","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all","page_number":99,"box":{"x":117,"y":335,"width":740,"height":12}},{"id":"51b54ba5-47e5-4428-9007-1343436d7605","block_type":"box","text":"fixed income securities, commercial paper prices are susceptible to fluctuations in interest rates. If","page_number":99,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"fa3bd409-8e0d-4a21-8e3a-8d21c78e43d2","block_type":"box","text":"interest rates rise, commercial paper prices will decline and vice versa. However, the short-term nature","page_number":99,"box":{"x":117,"y":366,"width":767,"height":12}},{"id":"b217e0db-a43e-4de2-8abb-a457d39af71e","block_type":"box","text":"of a commercial paper investment generally makes it less susceptible to volatility than many other fixed","page_number":99,"box":{"x":116,"y":382,"width":771,"height":12}},{"id":"12eb9b7b-ba70-42fd-8777-4c5774d4f69a","block_type":"box","text":"income securities because interest rate risk typically increases as maturity lengths increase.","page_number":99,"box":{"x":117,"y":397,"width":686,"height":12}},{"id":"066506fb-9383-4105-98d2-d3d98c48aa4c","block_type":"box","text":"Commercial paper tends to yield smaller returns than longer-term corporate debt because securities","page_number":99,"box":{"x":117,"y":413,"width":746,"height":12}},{"id":"97499664-fb83-417a-8410-318cc113ed7c","block_type":"box","text":"with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":99,"box":{"x":116,"y":428,"width":686,"height":12}},{"id":"2aae141a-b78f-456e-ae0c-887d3740ad5b","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":99,"box":{"x":117,"y":459,"width":535,"height":12}},{"id":"01e5f863-4d84-40c4-af7b-97fb2aaf0241","block_type":"box","text":"Certain Funds seek to gain","page_number":99,"box":{"x":653,"y":459,"width":210,"height":12}},{"id":"3b17d92b-437c-4df5-bdc8-8d6a17f8d39d","block_type":"box","text":"exposure to the commodities markets primarily through investments in hybrid instruments. Hybrid","page_number":99,"box":{"x":116,"y":475,"width":727,"height":12}},{"id":"95747e1a-f5fd-4999-995f-94001aa0e598","block_type":"box","text":"instruments are either equity or debt derivative securities with one or more commodity-dependent","page_number":99,"box":{"x":117,"y":490,"width":727,"height":12}},{"id":"226b84be-34c1-4aee-a0fc-9884a9056a0f","block_type":"box","text":"components that have payment features similar to a commodity futures contract, a commodity option","page_number":99,"box":{"x":116,"y":506,"width":753,"height":12}},{"id":"c2a9286d-37b4-46a3-903d-0ee7988d69dd","block_type":"box","text":"contract, or a combination of both. Therefore, these instruments are “commodity-linked.” They are","page_number":99,"box":{"x":116,"y":521,"width":731,"height":12}},{"id":"7fcfceb5-50f9-4612-a357-0f2fe338370c","block_type":"box","text":"considered “hybrid” instruments because they have both commodity-like and security-like","page_number":99,"box":{"x":116,"y":537,"width":667,"height":12}},{"id":"0d2415f9-3a45-44af-9c96-0431b41aa65c","block_type":"box","text":"characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":99,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"ec119785-29be-4ffc-bd3b-cf4fc7f0284c","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable","page_number":99,"box":{"x":116,"y":568,"width":766,"height":12}},{"id":"3a0e61cc-8219-4cb7-b891-8a8c2610849f","block_type":"box","text":"economic variable.","page_number":99,"box":{"x":116,"y":583,"width":145,"height":10}},{"id":"4fcbc59e-fbcd-497b-b554-1681dcda9a89","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than","page_number":99,"box":{"x":116,"y":614,"width":686,"height":12}},{"id":"66c76e04-6d4f-49b8-88a4-10c599294706","block_type":"box","text":"investments in traditional equity and debt securities when the value of those traditional securities is","page_number":99,"box":{"x":117,"y":630,"width":737,"height":12}},{"id":"7ca13b01-1a3a-4f7e-aeea-b6e495452c57","block_type":"box","text":"declining due to adverse economic conditions. As an example, during periods of rising inflation, debt","page_number":99,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"1a8327a4-b783-495a-919d-38be802ceac8","block_type":"box","text":"securities have historically tended to decline in value due to the general increase in prevailing interest","page_number":99,"box":{"x":116,"y":661,"width":753,"height":12}},{"id":"f0c4e38d-451a-40c3-a726-d4c2a10370b5","block_type":"box","text":"rates. Conversely, during those same periods of rising inflation, the prices of certain commodities, such","page_number":99,"box":{"x":117,"y":676,"width":763,"height":12}},{"id":"0891aafa-f2ef-4ffc-9153-f3bc6c499a93","block_type":"box","text":"as oil and metals, have historically tended to increase. Of course, there cannot be any guarantee that","page_number":99,"box":{"x":116,"y":692,"width":752,"height":12}},{"id":"6de41afc-433d-4262-9118-27301f987bdc","block_type":"box","text":"these investments will perform in that manner in the future, and at certain times the price movements","page_number":99,"box":{"x":116,"y":707,"width":749,"height":12}},{"id":"fcaecb99-09d0-4944-a65b-179504484457","block_type":"box","text":"of commodity-linked instruments have been parallel to those of debt and equity securities.","page_number":99,"box":{"x":116,"y":723,"width":665,"height":12}},{"id":"0615c230-76dc-4aaa-8a3e-647aeeb98fae","block_type":"box","text":"Commodities have historically tended to increase and decrease in value during different parts of the","page_number":99,"box":{"x":117,"y":738,"width":739,"height":12}},{"id":"bd7d20a0-d1c5-4cc3-81e7-4fefc63b0c1b","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in","page_number":99,"box":{"x":117,"y":754,"width":753,"height":12}},{"id":"2a01b90a-5155-4d8f-8933-d066d9859d9a","block_type":"box","text":"tandem with the prices of financial assets and thus may not provide overall portfolio diversification","page_number":99,"box":{"x":116,"y":769,"width":725,"height":12}},{"id":"d0e86d64-884d-42ac-9035-2db83e98619c","block_type":"box","text":"benefits. Under favorable economic conditions, the Fund’s investments may be expected to under","page_number":99,"box":{"x":117,"y":785,"width":731,"height":12}},{"id":"ab23e1fc-f9eb-4a7f-9b8a-7bba3e29d63d","block_type":"box","text":"perform an investment in traditional securities. Over the long term, the returns on the Fund’s","page_number":99,"box":{"x":117,"y":800,"width":682,"height":12}},{"id":"e2532fd7-087e-40d8-89dd-50c26dec4ab8","block_type":"box","text":"investments are expected to exhibit low or negative correlation with stocks and bonds.","page_number":99,"box":{"x":117,"y":816,"width":637,"height":12}},{"id":"837c3830-061b-4fa9-b67d-9fcacd609958","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":99,"box":{"x":117,"y":847,"width":222,"height":12}},{"id":"67a1f863-d9c6-4c84-9b93-ecfbd1a0851f","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion","page_number":99,"box":{"x":341,"y":847,"width":546,"height":12}},{"id":"55f985fc-dc31-400a-8db5-3ea86feb2b05","block_type":"box","text":"from regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid","page_number":99,"box":{"x":116,"y":862,"width":761,"height":12}},{"id":"02285972-75d1-4fa1-909a-63498ffc89e6","block_type":"box","text":"instrument that qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid","page_number":99,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"9ee5f168-8d1c-42bc-8487-de336e9a2eb9","block_type":"box","text":"II-5","page_number":99,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"deadb060-adb3-4ca1-b938-038a69c28856","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":99,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c327b806-4b74-497b-a657-90c586848d45","block_type":"box","text":"instrument is considered to be predominantly a security if (a) the issuer of the hybrid instrument","page_number":100,"box":{"x":117,"y":87,"width":712,"height":12}},{"id":"df425ea1-5f1f-474c-ad98-2ae012684569","block_type":"box","text":"receives payment in full of the purchase price of the hybrid instrument, substantially","page_number":100,"box":{"x":117,"y":102,"width":624,"height":13}},{"id":"05e90fb0-f863-45a0-aed2-869baa823467","block_type":"box","text":"contemporaneously with delivery of the hybrid instrument; (b) the purchaser or holder of the hybrid","page_number":100,"box":{"x":116,"y":118,"width":735,"height":12}},{"id":"c8f2dc30-9202-4215-ad20-d9804c012627","block_type":"box","text":"instrument is not required to make any payment to the issuer in addition to the purchase price paid","page_number":100,"box":{"x":117,"y":134,"width":735,"height":12}},{"id":"de475e97-0207-4caf-9fc6-af438d10db82","block_type":"box","text":"under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the","page_number":100,"box":{"x":117,"y":149,"width":743,"height":12}},{"id":"66fa9970-c2ad-44c1-a3bf-d93d7d1198f3","block_type":"box","text":"hybrid instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the","page_number":100,"box":{"x":117,"y":165,"width":770,"height":12}},{"id":"f19da34d-00d4-4909-b456-3a0322328cc1","block_type":"box","text":"instrument to mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as","page_number":100,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"f47e0f44-f666-452d-be64-2c06baa73427","block_type":"box","text":"a contract of sale of a commodity for future delivery (or option on such a contract) subject to applicable","page_number":100,"box":{"x":116,"y":196,"width":768,"height":12}},{"id":"8eaca92e-00d2-4a4f-9b04-1908ac1345d4","block_type":"box","text":"provisions of the Commodity Exchange Act. Hybrid instruments may be principal protected, partially","page_number":100,"box":{"x":117,"y":211,"width":743,"height":12}},{"id":"b4fb6328-c080-4dac-bf08-2f45374d935a","block_type":"box","text":"protected, or offer no principal protection. A principal protected hybrid instrument means that the issuer","page_number":100,"box":{"x":117,"y":227,"width":768,"height":12}},{"id":"f8845f22-cac0-4f5e-aced-f6954ed56c50","block_type":"box","text":"will pay, at a minimum, the par value of the note at maturity. Therefore, if the commodity value to which","page_number":100,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"226bfea9-3f5d-4a3e-9c94-d0407c3aa4ba","block_type":"box","text":"the hybrid instrument is linked declines over the life of the note, the Fund will receive at maturity the","page_number":100,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"abb85f20-8b91-4662-b263-af3d04edf6db","block_type":"box","text":"face or stated value of the note. With a principal protected hybrid instrument, the Fund will receive at","page_number":100,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"bc98237f-340d-4089-8f06-ae29f7dc7a82","block_type":"box","text":"maturity the greater of the par value of the note or the increase in its value based on the underlying","page_number":100,"box":{"x":117,"y":289,"width":739,"height":12}},{"id":"724dcc77-6064-4672-9a37-2ae483a56be2","block_type":"box","text":"commodity or index. This protection is, in effect, an option whose value is subject to the volatility and","page_number":100,"box":{"x":116,"y":304,"width":751,"height":12}},{"id":"3550ca89-39a9-4ccf-ac02-c2fc55a1184c","block_type":"box","text":"price level of the underlying commodity. The Manager’s decision whether to use principal protection","page_number":100,"box":{"x":117,"y":320,"width":743,"height":12}},{"id":"084a8a6b-65a9-453c-8d25-0875949f77a7","block_type":"box","text":"depends in part on the cost of the protection. In addition, the protection feature depends upon the","page_number":100,"box":{"x":116,"y":335,"width":728,"height":12}},{"id":"9d010f84-65d1-4115-b39d-69212de7b411","block_type":"box","text":"ability of the issuer to meet its obligation to buy back the security, and, therefore, depends on the","page_number":100,"box":{"x":116,"y":351,"width":724,"height":12}},{"id":"f3449fc5-e536-4123-8a9a-a98ee1c1eb67","block_type":"box","text":"creditworthiness of the issuer. With full principal protection, the Fund will receive at maturity of the","page_number":100,"box":{"x":116,"y":366,"width":731,"height":12}},{"id":"0a5984c0-c2d9-43aa-b485-d298c9607df0","block_type":"box","text":"hybrid instrument either the stated par value of the hybrid instrument, or potentially, an amount greater","page_number":100,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"f2bba0cf-e5e0-4526-8e6a-241acf843f28","block_type":"box","text":"than the stated par value if the underlying commodity, index, futures contract or economic variable to","page_number":100,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"08e39d8c-4fd8-4fb7-b2f7-2a975c0d66ec","block_type":"box","text":"which the hybrid instrument is linked has increased in value. Partially protected hybrid instruments may","page_number":100,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"84a60839-a508-4d17-af0c-f3d2e88d9e31","block_type":"box","text":"suffer some loss of principal if the underlying commodity, index, futures contract or economic variable","page_number":100,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"0b44c5ce-7dbb-4258-bd8d-2851a8ff9a4a","block_type":"box","text":"to which the hybrid instrument is linked declines in value during the term of the hybrid instrument.","page_number":100,"box":{"x":116,"y":444,"width":726,"height":12}},{"id":"16f081e3-f6e6-4647-ab4b-8dc68efb8a14","block_type":"box","text":"However, partially protected hybrid instruments have a specified limit as to the amount of principal that","page_number":100,"box":{"x":117,"y":459,"width":764,"height":12}},{"id":"c005bfa2-bf04-4894-b798-d1d2dd0780a1","block_type":"box","text":"they may lose.","page_number":100,"box":{"x":116,"y":475,"width":113,"height":12}},{"id":"a9a78931-5328-4bdc-b40b-becf7c2763ec","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":100,"box":{"x":116,"y":506,"width":355,"height":12}},{"id":"b36df9cc-8ede-4f5a-94eb-050adea63430","block_type":"box","text":"Certain Funds may invest in hybrid instruments that","page_number":100,"box":{"x":473,"y":506,"width":393,"height":12}},{"id":"217347d5-2a8b-44e7-9db1-1dc961f0fdfe","block_type":"box","text":"offer no principal protection. At maturity, there is a risk that the underlying commodity price, futures","page_number":100,"box":{"x":116,"y":521,"width":738,"height":12}},{"id":"013a6f3a-275a-4f1b-b932-95596ad4a3b7","block_type":"box","text":"contract, index or other economic variable may have declined sufficiently in value such that some or all","page_number":100,"box":{"x":116,"y":537,"width":768,"height":12}},{"id":"29aa92e3-736a-46c1-9fe6-1e6c4164342e","block_type":"box","text":"of the face value of the hybrid instrument might not be returned. The Manager, at its discretion, may","page_number":100,"box":{"x":116,"y":552,"width":746,"height":12}},{"id":"ead1c540-7020-4293-aac0-70373a093ff1","block_type":"box","text":"invest in a partially protected principal structured note or a note without principal protection. In deciding","page_number":100,"box":{"x":117,"y":568,"width":767,"height":12}},{"id":"24923e86-dc7b-4f35-8683-d0f1587fa42f","block_type":"box","text":"to purchase a note without principal protection, the Manager may consider, among other things, the","page_number":100,"box":{"x":116,"y":583,"width":743,"height":12}},{"id":"22955706-3f77-4118-af79-369207cf725b","block_type":"box","text":"expected performance of the underlying commodity futures contract, index or other economic variable","page_number":100,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"baa389cc-b96c-44f0-aa97-7703b6789256","block_type":"box","text":"over the term of the note, the cost of the note, and any other economic factors that the Manager","page_number":100,"box":{"x":116,"y":614,"width":717,"height":12}},{"id":"36c22c2c-8bbe-451b-b0f2-4d959054f30f","block_type":"box","text":"believes are relevant.","page_number":100,"box":{"x":117,"y":630,"width":163,"height":9}},{"id":"ec94ae0f-fd3d-4009-b767-d8ca420a3e66","block_type":"box","text":"Limitations on Leverage.","page_number":100,"box":{"x":116,"y":661,"width":181,"height":12}},{"id":"c3575da3-1c10-437f-8421-39a790ec6b88","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve","page_number":100,"box":{"x":304,"y":661,"width":534,"height":12}},{"id":"a60c5870-0fd6-41d1-98fc-7b0c7b13a687","block_type":"box","text":"leverage. To avoid being subject to undue leverage risk, a Fund will seek to limit the amount of","page_number":100,"box":{"x":117,"y":676,"width":703,"height":12}},{"id":"b313b999-f2bc-41f4-a1f8-5743d0571d22","block_type":"box","text":"economic leverage it has under any one hybrid instrument that it buys and the leverage of the Fund’s","page_number":100,"box":{"x":116,"y":692,"width":750,"height":12}},{"id":"10cf4a2e-4a16-4a98-802c-497979237b81","block_type":"box","text":"overall portfolio. A Fund will not invest in a hybrid instrument if, at the time of purchase: (i) that","page_number":100,"box":{"x":116,"y":707,"width":699,"height":12}},{"id":"60f85bfb-895b-4d45-9d0d-1e5197cd6d52","block_type":"box","text":"instrument’s “leverage ratio” exceeds 300% of the price increase in the underlying commodity, futures","page_number":100,"box":{"x":117,"y":723,"width":753,"height":12}},{"id":"8d85a3a1-160d-4995-a2ea-516fd2fd419a","block_type":"box","text":"contract, index or other economic variable or (ii) the Fund’s “portfolio leverage ratio” exceeds 150%,","page_number":100,"box":{"x":116,"y":738,"width":739,"height":12}},{"id":"a0ac7588-cd8b-4675-a5a3-5b9abac2ddc9","block_type":"box","text":"measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a hybrid","page_number":100,"box":{"x":117,"y":754,"width":737,"height":12}},{"id":"4e0d8078-282f-4384-bd97-fe0b877fe20e","block_type":"box","text":"instrument, assuming a one percent price increase in the underlying commodity, futures contract, index","page_number":100,"box":{"x":117,"y":769,"width":765,"height":12}},{"id":"0e877c69-f346-43e5-bddf-976a7abd59f8","block_type":"box","text":"or other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1%","page_number":100,"box":{"x":116,"y":785,"width":752,"height":12}},{"id":"d49b617b-3562-4b3c-a80f-c153fb9432bc","block_type":"box","text":"gain in the underlying economic variable would be expected to result in a 1.5% gain in value for the","page_number":100,"box":{"x":116,"y":800,"width":735,"height":12}},{"id":"ffa09469-d380-475c-805e-54539934d861","block_type":"box","text":"hybrid instrument. Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5%","page_number":100,"box":{"x":117,"y":816,"width":757,"height":12}},{"id":"f728d01f-1cae-4f86-b26a-74760551280b","block_type":"box","text":"loss if the underlying economic variable lost 1% of its value. “Portfolio leverage ratio” is defined as the","page_number":100,"box":{"x":117,"y":831,"width":758,"height":12}},{"id":"768bb468-ed14-4d66-aaa5-45bc8db65a63","block_type":"box","text":"average (mean) leverage ratio of all instruments in a Fund’s portfolio, weighted by the market values of","page_number":100,"box":{"x":116,"y":847,"width":769,"height":12}},{"id":"22be7526-73ef-4b58-b050-f2f32879d996","block_type":"box","text":"such instruments or, in the case of futures contracts, their notional values. A Fund may at times or from","page_number":100,"box":{"x":116,"y":862,"width":771,"height":12}},{"id":"c391caab-8308-4865-b97b-871c3b74aa9b","block_type":"box","text":"II-6","page_number":100,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"e0209e10-27bd-4529-b493-e3d768f49fa7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":100,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6b945fc9-37ae-4f09-bfa1-67a1fbd7eb5a","block_type":"box","text":"time to time decide not to use leverage in its investments or use less leverage than may otherwise be","page_number":101,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"0ad4d8a2-2e3b-4db6-a830-6ebe8dcc9da4","block_type":"box","text":"allowable.","page_number":101,"box":{"x":116,"y":103,"width":79,"height":9}},{"id":"69ef96e5-2586-4d76-a887-6d4458f70ec9","block_type":"box","text":"Counterparty Risk.","page_number":101,"box":{"x":117,"y":134,"width":136,"height":12}},{"id":"081a063e-dd40-4dd5-8109-afbd34cb0f09","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded","page_number":101,"box":{"x":255,"y":134,"width":625,"height":12}},{"id":"14b24964-7e20-4349-b01b-301d51bc9102","block_type":"box","text":"futures and options, which are standard contracts, hybrid instruments are customized securities, tailor","page_number":101,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"06a3c6a7-7981-4f2b-b294-73144423dcd0","block_type":"box","text":"made by a specific issuer. With a listed futures or options contract, an investor’s counterparty is the","page_number":101,"box":{"x":117,"y":165,"width":740,"height":12}},{"id":"f2c85b96-fe01-4f83-b92f-af508acf9771","block_type":"box","text":"exchange clearinghouse. Exchange clearinghouses are capitalized by the exchange members and","page_number":101,"box":{"x":116,"y":180,"width":738,"height":12}},{"id":"de5e2565-efe3-4ce8-bae7-00098be6348f","block_type":"box","text":"typically have high investment grade ratings (","page_number":101,"box":{"x":116,"y":196,"width":336,"height":12}},{"id":"49f8d581-d794-4f33-ba4e-864a531c2b0a","block_type":"box","text":"e.g.","page_number":101,"box":{"x":453,"y":198,"width":26,"height":10}},{"id":"9e2aadbb-8449-41c9-92ac-4720e1302053","block_type":"box","text":", ratings of AAA or AA by S&P). Therefore, the risk is","page_number":101,"box":{"x":482,"y":196,"width":396,"height":12}},{"id":"23b737a2-2bb7-4d25-83d4-774b8da40925","block_type":"box","text":"small that an exchange clearinghouse might be unable to meet its obligations at maturity. However,","page_number":101,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"b1bc504d-8436-4a8c-bdd9-3fb2538ae623","block_type":"box","text":"with a hybrid instrument, a Fund will take on the counterparty credit risk of the issuer. That is, at","page_number":101,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"3decbf55-94f9-4871-85c7-9797b866cfba","block_type":"box","text":"maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its obligations","page_number":101,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"c75891df-adeb-432d-812d-aad0233f9c29","block_type":"box","text":"under the structured note.","page_number":101,"box":{"x":117,"y":258,"width":196,"height":9}},{"id":"d56dc810-2353-4c3c-b8ff-468028a77f1b","block_type":"box","text":"Convertible Securities.","page_number":101,"box":{"x":117,"y":289,"width":180,"height":9}},{"id":"357d150f-93b8-4afa-a046-69d97a4864d5","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other","page_number":101,"box":{"x":298,"y":289,"width":554,"height":12}},{"id":"b65f4f70-d8c7-4648-9835-0c99e5db3024","block_type":"box","text":"security that may be converted into or exchanged for a prescribed amount of common stock or other","page_number":101,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"b969a0de-27de-4291-a9f8-1b89a96bcba2","block_type":"box","text":"equity security of the same or a different issuer within a particular period of time at a specified price or","page_number":101,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"1550969a-2904-4cdc-8559-f085db1e13ec","block_type":"box","text":"formula. A convertible security entitles the holder to receive interest paid or accrued on debt or the","page_number":101,"box":{"x":116,"y":335,"width":734,"height":12}},{"id":"0ee7261c-950f-43b4-8b8f-82d0598c99f7","block_type":"box","text":"dividend paid on preferred stock until the convertible security matures or is redeemed, converted or","page_number":101,"box":{"x":116,"y":351,"width":742,"height":12}},{"id":"037bcb8b-70aa-4337-9c5c-22811ae7ae4a","block_type":"box","text":"exchanged. Before conversion, convertible securities have characteristics similar to nonconvertible","page_number":101,"box":{"x":116,"y":366,"width":738,"height":12}},{"id":"c1ab082b-ae90-4bd8-b37e-ad0d1073f2fe","block_type":"box","text":"income securities in that they ordinarily provide a stable stream of income with generally higher yields","page_number":101,"box":{"x":117,"y":382,"width":757,"height":12}},{"id":"2a69205b-93ac-4fd0-a70f-1598d1f7c3b1","block_type":"box","text":"than those of common stocks of the same or similar issuers, but lower yields than comparable","page_number":101,"box":{"x":116,"y":397,"width":703,"height":12}},{"id":"f77d4e41-e1bb-40b0-8369-98bea93e7b47","block_type":"box","text":"nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":101,"box":{"x":117,"y":413,"width":767,"height":12}},{"id":"c006160d-4c08-467e-a550-9e4a50094ab9","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The","page_number":101,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"1e364d6e-8849-4111-9475-48c3224fe4d7","block_type":"box","text":"credit standing of the issuer and other factors also may have an effect on the convertible security’s","page_number":101,"box":{"x":116,"y":444,"width":736,"height":12}},{"id":"7b4b35bf-42d9-42ec-9122-dfd2cc34e51d","block_type":"box","text":"investment value. Convertible securities rank senior to common stock in a corporation’s capital","page_number":101,"box":{"x":117,"y":459,"width":706,"height":12}},{"id":"970a5ab1-2e3d-426d-92e6-cfb53dfde188","block_type":"box","text":"structure but are usually subordinated to comparable nonconvertible securities. Convertible securities","page_number":101,"box":{"x":116,"y":475,"width":757,"height":12}},{"id":"8bd7469e-1b54-4ef5-9bac-66c3b50e7044","block_type":"box","text":"may be subject to redemption at the option of the issuer at a price established in the convertible","page_number":101,"box":{"x":117,"y":490,"width":714,"height":12}},{"id":"7635879f-40c0-4e61-a3ae-c06673f73a35","block_type":"box","text":"security’s governing instrument.","page_number":101,"box":{"x":116,"y":506,"width":241,"height":12}},{"id":"5315e069-f28d-4aff-94dc-071fb78fa2ee","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an","page_number":101,"box":{"x":116,"y":537,"width":710,"height":12}},{"id":"dd144cb6-8ff0-4897-b4de-1a4820b1316d","block_type":"box","text":"investment company seeking a high total return from capital appreciation and investment income.","page_number":101,"box":{"x":117,"y":552,"width":727,"height":12}},{"id":"931efab2-3f07-4578-90cf-a1cddc836d2b","block_type":"box","text":"These characteristics include the potential for capital appreciation as the value of the underlying","page_number":101,"box":{"x":116,"y":568,"width":716,"height":12}},{"id":"76cd449d-af99-4445-a513-71175fd06eec","block_type":"box","text":"common stock increases, the relatively high yield received from dividend or interest payments as","page_number":101,"box":{"x":116,"y":583,"width":723,"height":12}},{"id":"370c3478-0fcc-4886-b69a-f8d59d4c0c70","block_type":"box","text":"compared to common stock dividends and decreased risks of decline in value relative to the underlying","page_number":101,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"39918188-f267-4da4-bd92-d3a3b6d91d23","block_type":"box","text":"common stock due to their fixed-income nature. As a result of the conversion feature, however, the","page_number":101,"box":{"x":116,"y":614,"width":739,"height":11}},{"id":"80a1da9b-4f1b-4636-8caf-e1343c4b3037","block_type":"box","text":"interest rate or dividend preference on a convertible security is generally less than would be the case if","page_number":101,"box":{"x":117,"y":630,"width":766,"height":12}},{"id":"64bde8e8-1f76-4b34-ba8b-b80366b12106","block_type":"box","text":"the securities were issued in nonconvertible form.","page_number":101,"box":{"x":116,"y":645,"width":373,"height":10}},{"id":"a8826dc7-145c-450b-92ad-efb7b14a8f83","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security","page_number":101,"box":{"x":117,"y":676,"width":755,"height":12}},{"id":"39864768-7b8b-433c-a265-9ba27478a3af","block_type":"box","text":"relative to its credit quality and the potential capital appreciation that is offered by the underlying","page_number":101,"box":{"x":117,"y":692,"width":710,"height":12}},{"id":"b55ad474-3575-4506-bbfe-2f8f213444f0","block_type":"box","text":"common stock, among other things.","page_number":101,"box":{"x":116,"y":707,"width":265,"height":12}},{"id":"e69e886b-b8d3-4c25-846c-ce9587029155","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":101,"box":{"x":117,"y":738,"width":758,"height":10}},{"id":"73ae5b22-4148-4d12-a958-9e2c1ca4edab","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the","page_number":101,"box":{"x":116,"y":754,"width":734,"height":12}},{"id":"6a3ec22d-d57f-4daa-ba33-3e771048db5f","block_type":"box","text":"underlying equity securities may be quoted in the currency of the country where the issuer is domiciled.","page_number":101,"box":{"x":117,"y":769,"width":764,"height":12}},{"id":"2753eece-e10d-4cf0-b595-990bc5a05b07","block_type":"box","text":"As a result, fluctuations in the exchange rate between the currency in which the debt security is","page_number":101,"box":{"x":116,"y":785,"width":707,"height":12}},{"id":"31d2e427-5cfd-48a4-af5f-fa6708276eb5","block_type":"box","text":"denominated and the currency in which the share price is quoted will affect the value of the convertible","page_number":101,"box":{"x":116,"y":800,"width":761,"height":12}},{"id":"6529f4e0-e9d2-477b-a9bd-3be71087d415","block_type":"box","text":"security. With respect to convertible securities denominated in a currency different from that of the","page_number":101,"box":{"x":116,"y":816,"width":728,"height":12}},{"id":"068a50b4-aa9e-4e2b-8a3a-4a1aad15d7a7","block_type":"box","text":"underlying equity securities, the conversion price may be based on a fixed exchange rate established","page_number":101,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"a7cb1c10-abbe-4578-9e64-c5b89a70b422","block_type":"box","text":"at the time the security is issued, which may increase the effects of currency risk. As described below,","page_number":101,"box":{"x":116,"y":847,"width":763,"height":12}},{"id":"90121936-4a6b-44be-a856-6fa93c3ebf11","block_type":"box","text":"a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to reduce","page_number":101,"box":{"x":116,"y":862,"width":766,"height":12}},{"id":"29d049cb-c041-4a00-8f24-6fc5d0268dc1","block_type":"box","text":"the effect of exchange rate fluctuations.","page_number":101,"box":{"x":116,"y":878,"width":298,"height":12}},{"id":"c4874191-af79-41ac-b5d7-c2bf991660f2","block_type":"box","text":"II-7","page_number":101,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"c83a7fe2-e6fa-4e9f-966c-556442771ce7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":101,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f6cc84b9-e741-4b44-a36c-ff0b012603ce","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield","page_number":102,"box":{"x":116,"y":87,"width":749,"height":12}},{"id":"c351d89e-bfa9-40ae-bb3f-1dc107ad1c72","block_type":"box","text":"on nonconvertible securities of comparable issuers and by the value of the underlying common stock.","page_number":102,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"0fc87c5a-8b96-42c9-bfb1-94807479f149","block_type":"box","text":"The value of a convertible security viewed without regard to its conversion feature (","page_number":102,"box":{"x":116,"y":118,"width":617,"height":12}},{"id":"29825b54-6201-4072-abc6-4dfdf77d5987","block_type":"box","text":"i.e.","page_number":102,"box":{"x":734,"y":118,"width":20,"height":10}},{"id":"bf0936e5-d60f-41d6-b9ae-42ecaf27916a","block_type":"box","text":", strictly on the","page_number":102,"box":{"x":757,"y":118,"width":112,"height":12}},{"id":"4e6cb3fc-a522-439c-959a-7540b6c93b69","block_type":"box","text":"basis of its yield) is sometimes referred to as its “investment value.” To the extent interest rates","page_number":102,"box":{"x":117,"y":134,"width":709,"height":12}},{"id":"a4e8a96c-1b73-4173-91d0-bd1445d009c2","block_type":"box","text":"change, the investment value of the convertible security typically will fluctuate. At the same time,","page_number":102,"box":{"x":116,"y":149,"width":720,"height":12}},{"id":"a47575b0-5ccf-46a0-bd93-5d9e57907bb0","block_type":"box","text":"however, the value of the convertible security will be influenced by its “conversion value,” which is the","page_number":102,"box":{"x":117,"y":165,"width":756,"height":12}},{"id":"144ca1b6-85d7-4a71-a05e-4760f25463f4","block_type":"box","text":"market value of the underlying common stock that would be obtained if the convertible security were","page_number":102,"box":{"x":117,"y":180,"width":747,"height":12}},{"id":"76cb0604-b925-4ab7-a7ef-5409c7d297cb","block_type":"box","text":"converted. Conversion value fluctuates directly with the price of the underlying common stock. If the","page_number":102,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"375aaa6c-2d73-496c-866e-99bf395cdfd1","block_type":"box","text":"conversion value of a convertible security is substantially below its investment value, the price of the","page_number":102,"box":{"x":116,"y":211,"width":748,"height":12}},{"id":"846e2dab-cad3-487a-818b-863e534393ba","block_type":"box","text":"convertible security is governed principally by its investment value. To the extent the conversion value","page_number":102,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"4e8e62bc-1135-412b-9f71-706dea183bb2","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the","page_number":102,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"c1190708-a4af-4a9d-9d71-0d20039c728d","block_type":"box","text":"price of the convertible security will be influenced principally by its conversion value. A convertible","page_number":102,"box":{"x":117,"y":258,"width":729,"height":12}},{"id":"044cac65-4c8f-4fe4-a1f4-ec2aa4ce925c","block_type":"box","text":"security will sell at a premium over the conversion value to the extent investors place value on the right","page_number":102,"box":{"x":116,"y":273,"width":768,"height":12}},{"id":"44d965c2-5a36-4c2d-85e3-39159bdc6994","block_type":"box","text":"to acquire the underlying common stock while holding a fixed-income security. The yield and","page_number":102,"box":{"x":116,"y":289,"width":691,"height":12}},{"id":"8077124c-1ba8-4ebf-80b6-3fa8cffeb7e9","block_type":"box","text":"conversion premium of convertible securities issued in Japan and the Euromarket are frequently","page_number":102,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"b8ba4b37-2a19-4297-be74-2822add4c57e","block_type":"box","text":"determined at levels that cause the conversion value to affect their market value more than the","page_number":102,"box":{"x":116,"y":320,"width":708,"height":9}},{"id":"606f2a26-9d84-4e3c-a456-21ace4648c39","block_type":"box","text":"securities’ investment value.","page_number":102,"box":{"x":116,"y":335,"width":215,"height":10}},{"id":"d7055270-093b-452f-b27e-c1221f02b057","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":102,"box":{"x":117,"y":362,"width":770,"height":12}},{"id":"d870a985-f8af-4216-a8aa-0f6422c9f090","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible","page_number":102,"box":{"x":116,"y":378,"width":713,"height":12}},{"id":"5942207c-2f5d-4f3b-a4d0-7c79842167c9","block_type":"box","text":"security may be subject to redemption at the option of the issuer at a price established in a charter","page_number":102,"box":{"x":116,"y":393,"width":734,"height":12}},{"id":"5af028a7-6f3f-4904-adea-65b6f9e8ffba","block_type":"box","text":"provision, indenture or other governing instrument pursuant to which the convertible security was","page_number":102,"box":{"x":117,"y":409,"width":723,"height":12}},{"id":"4d91a10c-efeb-44b4-98ff-9cb7ea74de93","block_type":"box","text":"issued. If a convertible security held by a Fund is called for redemption, the Fund will be required to","page_number":102,"box":{"x":117,"y":424,"width":741,"height":12}},{"id":"a11ea1c3-0ced-40ff-b166-3d83e03a20c4","block_type":"box","text":"redeem the security, convert it into the underlying common stock or sell it to a third party. Certain","page_number":102,"box":{"x":117,"y":440,"width":723,"height":12}},{"id":"c2d670fc-f580-4102-afc0-8d42b5bd0b12","block_type":"box","text":"convertible debt securities may provide a put option to the holder, which entitles the holder to cause","page_number":102,"box":{"x":116,"y":455,"width":745,"height":12}},{"id":"18d729f3-0b6a-4245-a0eb-4b94fbf1fa60","block_type":"box","text":"the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":102,"box":{"x":116,"y":471,"width":745,"height":12}},{"id":"0a453949-7996-4cae-9fa7-7936a31f8d11","block_type":"box","text":"security under certain circumstances.","page_number":102,"box":{"x":116,"y":486,"width":282,"height":12}},{"id":"831603d6-8868-4614-9210-bfdbaaa4d29f","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include","page_number":102,"box":{"x":116,"y":513,"width":765,"height":12}},{"id":"5fa62e16-8b87-46e3-a7f3-c9b07ab2f2a1","block_type":"box","text":"either Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are","page_number":102,"box":{"x":116,"y":529,"width":717,"height":9}},{"id":"fc8a02db-e546-43a4-b483-1410ebcecb46","block_type":"box","text":"instruments that are created by the issuer and have the economic characteristics of traditional","page_number":102,"box":{"x":117,"y":544,"width":701,"height":12}},{"id":"793867c6-393e-46d1-a3a1-86787928bbf8","block_type":"box","text":"convertible securities but may not actually permit conversion into the underlying equity securities in all","page_number":102,"box":{"x":116,"y":560,"width":760,"height":12}},{"id":"32e70639-6376-43d7-bb09-91069979972c","block_type":"box","text":"circumstances. As an example, a private company may issue a Cash-Settled Convertible that is","page_number":102,"box":{"x":116,"y":575,"width":715,"height":12}},{"id":"ba0e791a-b781-4bda-a10e-adf31100772f","block_type":"box","text":"convertible into common stock only if the company successfully completes a public offering of its","page_number":102,"box":{"x":116,"y":591,"width":721,"height":12}},{"id":"6712398c-5052-4062-82dc-352ce0f6806f","block_type":"box","text":"common stock prior to maturity and otherwise pays a cash amount to reflect any equity appreciation.","page_number":102,"box":{"x":116,"y":606,"width":751,"height":12}},{"id":"d35a7861-45b5-4f5c-aefe-ee63dbc8eeda","block_type":"box","text":"“Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":102,"box":{"x":116,"y":622,"width":726,"height":12}},{"id":"0f3814c7-2b81-42d7-80f6-8ff015a86a90","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":102,"box":{"x":116,"y":637,"width":651,"height":12}},{"id":"22a6ef27-46f8-4d79-84d1-71655b375095","block_type":"box","text":"i.e.","page_number":102,"box":{"x":767,"y":638,"width":21,"height":9}},{"id":"e12386c8-0f5e-49ec-9336-59ee1386b23b","block_type":"box","text":", fixed","page_number":102,"box":{"x":791,"y":637,"width":49,"height":12}},{"id":"79b61289-7cdd-41f7-a457-a5a46ff7b4d9","block_type":"box","text":"income (“fixed-income component”) or a right to acquire equity securities (“convertibility component”).","page_number":102,"box":{"x":117,"y":653,"width":756,"height":12}},{"id":"00f3d334-bbe2-4c39-9e1f-d540339887a2","block_type":"box","text":"The fixed-income component is achieved by investing in nonconvertible fixed-income securities, such","page_number":102,"box":{"x":116,"y":668,"width":751,"height":12}},{"id":"bf4aac0d-4f47-46ba-9ef2-b64208c58d18","block_type":"box","text":"as nonconvertible bonds, preferred stocks and money market instruments. The convertibility","page_number":102,"box":{"x":116,"y":684,"width":684,"height":12}},{"id":"f5b3646f-7fd1-4690-96e4-98d5dbdc3608","block_type":"box","text":"component is achieved by investing in call options, warrants, or other securities with equity conversion","page_number":102,"box":{"x":116,"y":700,"width":758,"height":12}},{"id":"c098f840-fdbd-4a79-a8c5-2dd0ea3e76ae","block_type":"box","text":"features (“equity features”) granting the holder the right to purchase a specified quantity of the","page_number":102,"box":{"x":116,"y":715,"width":697,"height":12}},{"id":"0f2cba56-254b-4aac-a720-e8580b4045ae","block_type":"box","text":"underlying stocks within a specified period of time at a specified price or, in the case of a stock index","page_number":102,"box":{"x":117,"y":730,"width":745,"height":13}},{"id":"fdb6cc1a-cddf-4d0f-8cb7-cc37a1e888cb","block_type":"box","text":"option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":102,"box":{"x":116,"y":746,"width":685,"height":12}},{"id":"adb0b1fc-e687-4004-9814-79b246e51131","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a","page_number":102,"box":{"x":116,"y":773,"width":751,"height":12}},{"id":"4f20bef2-7349-4945-8195-89928561e7b4","block_type":"box","text":"traditional convertible security, which is a single security that has a unitary market value, a","page_number":102,"box":{"x":116,"y":789,"width":669,"height":12}},{"id":"f0172a81-dd4e-4b45-bbba-260e62c053b3","block_type":"box","text":"Manufactured Convertible is comprised of two or more separate securities, each with its own market","page_number":102,"box":{"x":117,"y":804,"width":742,"height":12}},{"id":"f08694c2-984e-4c33-a1fd-b98e980692f5","block_type":"box","text":"value. Therefore, the total “market value” of such a Manufactured Convertible is the sum of the values","page_number":102,"box":{"x":116,"y":820,"width":755,"height":11}},{"id":"c75282f4-b73a-4a11-a5a6-8595c0cd35d4","block_type":"box","text":"of its fixed-income component and its convertibility component.","page_number":102,"box":{"x":116,"y":835,"width":472,"height":12}},{"id":"eb931871-a897-4d39-ab7f-a6fc081bfa25","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a","page_number":102,"box":{"x":117,"y":862,"width":724,"height":12}},{"id":"480520b6-94ec-4685-adba-e500555f36fb","block_type":"box","text":"traditional convertible security. Because many corporations have not issued convertible securities, the","page_number":102,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"8595d3d7-40a6-416b-ab8e-534f93c6b2ba","block_type":"box","text":"II-8","page_number":102,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"5f42b651-6c0b-4072-8ef0-27d806659e26","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":102,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4926cb63-4072-480b-8475-4311c3fbba7b","block_type":"box","text":"Manager may combine a fixed-income instrument and an equity feature with respect to the stock of the","page_number":103,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"c3f077e8-b830-4f20-86e3-09f365726fbf","block_type":"box","text":"issuer of the fixed-income instrument to create a synthetic convertible security otherwise unavailable in","page_number":103,"box":{"x":117,"y":102,"width":767,"height":13}},{"id":"82698707-60a3-4fc8-95d8-62b8b1c8659c","block_type":"box","text":"the market. The Manager may also combine a fixed-income instrument of an issuer with an equity","page_number":103,"box":{"x":116,"y":118,"width":731,"height":12}},{"id":"21efb58c-550b-43a3-b214-66e5f5581446","block_type":"box","text":"feature with respect to the stock of a different issuer when the Manager believes such a Manufactured","page_number":103,"box":{"x":116,"y":134,"width":763,"height":12}},{"id":"9362ae43-028a-42a8-98b6-58fc96a5565e","block_type":"box","text":"Convertible would better promote a Fund’s objective than alternative investments. For example, the","page_number":103,"box":{"x":117,"y":149,"width":742,"height":12}},{"id":"f34e4f67-afa7-49e2-afa0-ab2cead7ded4","block_type":"box","text":"Manager may combine an equity feature with respect to an issuer’s stock with a fixed-income security","page_number":103,"box":{"x":117,"y":165,"width":759,"height":12}},{"id":"f25edbcb-585c-40b2-bce1-5abc1df8cab8","block_type":"box","text":"of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":103,"box":{"x":116,"y":180,"width":702,"height":12}},{"id":"3cfc267d-8cb8-4520-bde5-5a88a39a90f8","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional","page_number":103,"box":{"x":116,"y":196,"width":762,"height":12}},{"id":"f5a1742f-c2ec-448d-80dd-f75e2d945496","block_type":"box","text":"convertible security issued by that issuer. A Manufactured Convertible also is a more flexible","page_number":103,"box":{"x":116,"y":211,"width":691,"height":12}},{"id":"2c11ee5e-b783-4105-a75a-e89cfcc6c996","block_type":"box","text":"investment in that its two components may be purchased separately and, upon purchasing the","page_number":103,"box":{"x":117,"y":227,"width":704,"height":12}},{"id":"b05494ce-213b-4c9e-b499-1086143cbdc9","block_type":"box","text":"separate securities, “combined” to create a Manufactured Convertible. For example, the Fund may","page_number":103,"box":{"x":116,"y":242,"width":736,"height":12}},{"id":"c0f1ae82-e958-4153-9bd9-091c9c6d81d3","block_type":"box","text":"purchase a warrant for eventual inclusion in a Manufactured Convertible while postponing the","page_number":103,"box":{"x":117,"y":258,"width":697,"height":12}},{"id":"07060b09-7223-4efc-9739-0994e37afa4c","block_type":"box","text":"purchase of a suitable bond to pair with the warrant pending development of more favorable market","page_number":103,"box":{"x":117,"y":273,"width":743,"height":12}},{"id":"b05aa0d0-4976-4866-b28e-7bbf2e124f74","block_type":"box","text":"conditions.","page_number":103,"box":{"x":116,"y":289,"width":85,"height":9}},{"id":"407f2ab4-0e4b-410a-bbf4-df6a6499e871","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a","page_number":103,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"fbacb8b6-0400-4794-b618-f6475c35317a","block_type":"box","text":"traditional convertible security with similar characteristics. For example, in the event a Fund created a","page_number":103,"box":{"x":116,"y":335,"width":758,"height":12}},{"id":"ab7381cf-8684-4a1a-bd0b-9f5edadfe926","block_type":"box","text":"Manufactured Convertible by combining a short-term U.S. Treasury instrument and a call option on a","page_number":103,"box":{"x":117,"y":351,"width":752,"height":12}},{"id":"fc93d027-464d-4d0e-9cf3-4eb70f3767ec","block_type":"box","text":"stock, the Manufactured Convertible would be expected to outperform a traditional convertible of","page_number":103,"box":{"x":116,"y":366,"width":720,"height":12}},{"id":"dc475c12-efcc-4730-ab5c-6372c24dd184","block_type":"box","text":"similar maturity that is convertible into that stock during periods when Treasury instruments outperform","page_number":103,"box":{"x":116,"y":382,"width":767,"height":12}},{"id":"d2d57678-822d-409f-a5d8-61bcedfa2632","block_type":"box","text":"corporate fixed-income securities and underperform during periods when corporate fixed-income","page_number":103,"box":{"x":116,"y":397,"width":722,"height":12}},{"id":"47f12ab0-2024-4462-9c0b-869e57e444fc","block_type":"box","text":"securities outperform Treasury instruments.","page_number":103,"box":{"x":116,"y":413,"width":329,"height":12}},{"id":"c36c12cb-c205-4605-9e4f-70d2612b2a89","block_type":"box","text":"Corporate Loans.","page_number":103,"box":{"x":117,"y":444,"width":134,"height":12}},{"id":"ad96ced2-659d-49ce-9263-2863e0892d7e","block_type":"box","text":"Certain Funds may invest in corporat","page_number":103,"box":{"x":252,"y":444,"width":274,"height":12}},{"id":"32868aeb-5abe-4729-9a8b-2376758a1466","block_type":"box","text":"e loans. Corporate loans are generally","page_number":103,"box":{"x":527,"y":444,"width":282,"height":12}},{"id":"e8faf895-5f86-4356-a2c2-e437ca441f42","block_type":"box","text":"non-investment grade floating rate instruments. Usually","page_number":103,"box":{"x":117,"y":459,"width":401,"height":12}},{"id":"a821ae1a-a508-464f-9f49-5d2f227b8abf","block_type":"box","text":", they are freely callable at the issuer’s option.","page_number":103,"box":{"x":520,"y":459,"width":336,"height":12}},{"id":"12c42ddb-8ad8-4428-b3db-96a4c3f8406c","block_type":"box","text":"Certain Funds may invest in fixed and floating rate loans (“Loans”) arranged through private negotiations","page_number":103,"box":{"x":117,"y":475,"width":762,"height":12}},{"id":"5c4393fb-a8e4-40c3-974b-9ee9eae13972","block_type":"box","text":"between a corporate borrower or a foreign soverei","page_number":103,"box":{"x":117,"y":490,"width":363,"height":12}},{"id":"bcdc6664-4552-4c57-9569-74a6791c7313","block_type":"box","text":"gn entity and one or more financial institutions or","page_number":103,"box":{"x":481,"y":490,"width":358,"height":12}},{"id":"20e85fea-3b10-45dd-a527-21c9593e11d2","block_type":"box","text":"institutional investors (“Lenders”). A Fund may invest in","page_number":103,"box":{"x":117,"y":506,"width":399,"height":12}},{"id":"bc24217d-a362-4b34-88d3-81063ecbeb5d","block_type":"box","text":"such Loans in the form of participations in Loans","page_number":103,"box":{"x":517,"y":506,"width":362,"height":12}},{"id":"dd61675e-6c22-4b19-ba20-90fee91f6132","block_type":"box","text":"(“Participations”) and assignments of all or a porti","page_number":103,"box":{"x":117,"y":521,"width":356,"height":12}},{"id":"22d60340-3a62-4353-b4d0-ed3e019ce3d3","block_type":"box","text":"on of Loans from third parties (“Assignments”). A Fund","page_number":103,"box":{"x":474,"y":521,"width":402,"height":12}},{"id":"80bd4432-2b69-4f38-9f84-9bfa0f4c3129","block_type":"box","text":"considers these investments to be investments in debt","page_number":103,"box":{"x":116,"y":537,"width":400,"height":9}},{"id":"37fa3b82-07ae-43ce-b75b-70ee0efcbf9b","block_type":"box","text":"securities for purposes of its investment policies.","page_number":103,"box":{"x":516,"y":537,"width":357,"height":12}},{"id":"055e4602-b70a-48fb-bdb8-c57a576bb0fd","block_type":"box","text":"Participations typically will result in the Fund havi","page_number":103,"box":{"x":117,"y":552,"width":353,"height":12}},{"id":"444d5327-aa12-4f2c-8d53-d9b07909ab98","block_type":"box","text":"ng a contractual relationship only with the Lender, not","page_number":103,"box":{"x":472,"y":552,"width":392,"height":12}},{"id":"2d9e2d82-07e0-4676-b8b4-dbb4e9e549e7","block_type":"box","text":"with the borrower. The Fund will have the right to receive","page_number":103,"box":{"x":116,"y":568,"width":417,"height":12}},{"id":"51bc6b67-9823-4183-ab46-6138fa82c993","block_type":"box","text":"payments of principal, interest and any fees to","page_number":103,"box":{"x":534,"y":568,"width":340,"height":12}},{"id":"392166c0-af0e-4a5d-a333-8c810a96ee02","block_type":"box","text":"which it is entitled only from the Lender selling t","page_number":103,"box":{"x":116,"y":583,"width":344,"height":12}},{"id":"0dd1af80-d66b-4fbf-8a40-51af7f82dac5","block_type":"box","text":"he Participation and only upon receipt by the Lender of","page_number":103,"box":{"x":461,"y":583,"width":402,"height":12}},{"id":"9f19d722-9e5c-4f7e-85b9-136220435b1d","block_type":"box","text":"the payments from the borrower. In connection wit","page_number":103,"box":{"x":116,"y":599,"width":365,"height":12}},{"id":"b7bf3351-bd46-46b6-b590-a90cfcf80edd","block_type":"box","text":"h purchasing Participations, the Fund generally will","page_number":103,"box":{"x":482,"y":599,"width":374,"height":12}},{"id":"23edd400-0a05-4db1-89db-9631501d09e4","block_type":"box","text":"have no right to enforce compliance by the borrower w","page_number":103,"box":{"x":117,"y":614,"width":383,"height":12}},{"id":"48d08d50-70eb-41bb-9f49-d55f6d07e2f3","block_type":"box","text":"with the terms of the loan agreement relating to the","page_number":103,"box":{"x":500,"y":614,"width":376,"height":12}},{"id":"be1ce05f-d1a3-42d1-a518-1cf86c510d13","block_type":"box","text":"Loans, nor any rights of set-off against the borrower, and the Fund may not benefit directly from any","page_number":103,"box":{"x":117,"y":630,"width":729,"height":12}},{"id":"11baa666-ceb6-4a24-8aa3-53ec74515a2b","block_type":"box","text":"collateral supporting the Loan in which it has purc","page_number":103,"box":{"x":116,"y":645,"width":360,"height":12}},{"id":"0fa2ef8c-af23-467e-9bfb-4b15b3909615","block_type":"box","text":"hased the Participation. As a result, the Fund will","page_number":103,"box":{"x":477,"y":645,"width":359,"height":12}},{"id":"7cae7129-553b-419f-b004-53214e3904c3","block_type":"box","text":"assume the credit risk of both the borrower and","page_number":103,"box":{"x":116,"y":661,"width":343,"height":9}},{"id":"03757cad-9b49-413f-8e81-21e850c5d436","block_type":"box","text":"the Lender that is selling the Participation.","page_number":103,"box":{"x":465,"y":661,"width":303,"height":12}},{"id":"b3a1310b-8f12-4b03-b205-c314da61a183","block_type":"box","text":"In the event of the insolvency of the Lender selling the Participation, the Fund may be treated as a","page_number":103,"box":{"x":117,"y":692,"width":727,"height":12}},{"id":"486f1c32-2d87-48c2-aeff-a8862bc1ffb7","block_type":"box","text":"general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":103,"box":{"x":116,"y":707,"width":709,"height":12}},{"id":"54fc5517-770b-4b66-9a27-9f820a26f420","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and","page_number":103,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"ca525e30-ab07-4092-a5a6-3bab8a3f4ed7","block_type":"box","text":"the borrower is determined by the Fund’s manager to be creditworthy. When the Fund purchases","page_number":103,"box":{"x":116,"y":738,"width":721,"height":12}},{"id":"770b9dee-2fb2-4ce7-903a-0d2669052621","block_type":"box","text":"Assignments from Lenders, the Fund will acquire direct rights against the borrower on the Loan, and","page_number":103,"box":{"x":116,"y":754,"width":743,"height":12}},{"id":"1c8823e4-19bf-49b2-abf1-bd0a2b7084f8","block_type":"box","text":"will not have exposure to a counterparty’s credit risk. The Funds may enter into Participations and","page_number":103,"box":{"x":116,"y":769,"width":725,"height":12}},{"id":"802bfde2-4c3a-451c-8acf-53d64ae100bc","block_type":"box","text":"Assignments on a forward commitment or “when-issued” basis, whereby a Fund would agree to","page_number":103,"box":{"x":116,"y":785,"width":709,"height":12}},{"id":"a930a66a-7156-4413-9c52-16c12c8ed995","block_type":"box","text":"purchase a Participation or Assignment at set terms in the future. For more information on forward","page_number":103,"box":{"x":117,"y":800,"width":727,"height":12}},{"id":"5e186b85-b9fd-4f67-a759-a78bb9849440","block_type":"box","text":"commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery Securities","page_number":103,"box":{"x":116,"y":816,"width":746,"height":12}},{"id":"ead5d1fc-435b-4f39-81c0-e49939d871eb","block_type":"box","text":"and Forward Commitments” below. A Fund may have difficulty disposing of Assignments and","page_number":103,"box":{"x":116,"y":831,"width":697,"height":12}},{"id":"4eeadd05-afc5-43fd-ae65-951d1cc099dd","block_type":"box","text":"Participations. In certain cases, the market for such instruments may lack sufficient liquidity, and","page_number":103,"box":{"x":117,"y":847,"width":718,"height":12}},{"id":"8df97afd-8354-4740-b8d9-8db584f8f0b9","block_type":"box","text":"therefore the Fund anticipates that in such cases such instruments could be sold only to a limited","page_number":103,"box":{"x":116,"y":862,"width":725,"height":12}},{"id":"fffc8fc8-bba2-4838-a029-bf86d09ba43c","block_type":"box","text":"number of institutional investors. The lack of a sufficiently liquid secondary market may have an","page_number":103,"box":{"x":117,"y":878,"width":713,"height":12}},{"id":"47d396d6-726f-4ee9-ad2e-1eb8570290e9","block_type":"box","text":"II-9","page_number":103,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"bbb76e68-b279-4099-a640-c341986e7094","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":103,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"44c19caf-25ea-4a17-bef0-aaac6546b64a","block_type":"box","text":"adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":104,"box":{"x":116,"y":87,"width":727,"height":12}},{"id":"7e0bbede-6dfa-4cbd-9c92-6deee28ae5ed","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the","page_number":104,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"8b85ccc4-c014-4054-9d19-f19de9710e8f","block_type":"box","text":"creditworthiness of the borrower. Leading financial institutions often act as agent for a broader group of","page_number":104,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"945cdc13-63e2-42ea-851c-df75a7b2d289","block_type":"box","text":"Lenders, generally referred to as a syndicate. The syndicate’s agent arranges the loans, holds","page_number":104,"box":{"x":117,"y":134,"width":703,"height":12}},{"id":"3859f2ef-adc3-42d7-a59c-8b39ab0cacd7","block_type":"box","text":"collateral and accepts payments of principal and interest. Failure by the syndicate agent to fulfill its","page_number":104,"box":{"x":116,"y":149,"width":736,"height":12}},{"id":"ce4f045a-412f-4c13-ac12-ae18fcf876d1","block_type":"box","text":"obligations may delay or adversely affect receipt of payment by the Fund.","page_number":104,"box":{"x":116,"y":165,"width":550,"height":12}},{"id":"89cb7693-b204-4077-b564-2eaf0dd9918e","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income.","page_number":104,"box":{"x":116,"y":193,"width":706,"height":12}},{"id":"a1d92b9a-214a-46b4-a7bb-733dac4e4d04","block_type":"box","text":"Although borrowers frequently provide collateral to secure repayment of these obligations they do not","page_number":104,"box":{"x":116,"y":209,"width":757,"height":12}},{"id":"0131525c-582c-4f22-bb08-b30ed3829bc3","block_type":"box","text":"always do so. If they do provide collateral, the value of the collateral may not completely cover the","page_number":104,"box":{"x":116,"y":224,"width":732,"height":12}},{"id":"0d120eee-251a-4754-86a9-b2e28f589eef","block_type":"box","text":"borrower’s obligations at the time of a default. If a borrower files for protection from its creditors under","page_number":104,"box":{"x":117,"y":240,"width":757,"height":12}},{"id":"6fe9032e-059c-4ada-9b9d-9b28dc1b5a11","block_type":"box","text":"the U.S. bankruptcy laws, these laws may limit a Fund’s rights to its collateral. In addition, the value of","page_number":104,"box":{"x":116,"y":255,"width":761,"height":12}},{"id":"6fceb931-4499-479d-8245-f62b95bf6064","block_type":"box","text":"collateral may erode during a bankruptcy case. In the event of a bankruptcy, the holder of a Loan may","page_number":104,"box":{"x":116,"y":271,"width":762,"height":12}},{"id":"6784e36c-6e2e-4e0f-87f9-919664081cf5","block_type":"box","text":"not recover its principal, may experience a long delay in recovering its investment and may not receive","page_number":104,"box":{"x":117,"y":286,"width":765,"height":12}},{"id":"f481b6a0-ebe9-428f-b11b-602f705c553b","block_type":"box","text":"interest during the delay.","page_number":104,"box":{"x":117,"y":302,"width":188,"height":12}},{"id":"c2dc1001-9931-4bcd-947f-572d475324e9","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale","page_number":104,"box":{"x":116,"y":331,"width":763,"height":12}},{"id":"f4fddec6-a57c-4cf1-a350-b288f09fef32","block_type":"box","text":"of corporate loans may not be readily available to make additional investments or to meet a Fund’s","page_number":104,"box":{"x":116,"y":346,"width":738,"height":12}},{"id":"89c3440e-eb85-4938-995e-cb4448bf9b67","block_type":"box","text":"redemption obligations. To the extent the extended settlement process gives rise to short-term liquidity","page_number":104,"box":{"x":117,"y":362,"width":765,"height":12}},{"id":"55132786-de8f-43c5-b575-7ea9bfbd682d","block_type":"box","text":"needs, a Fund may hold additional cash, sell investments or temporarily borrow from banks and other","page_number":104,"box":{"x":117,"y":377,"width":758,"height":12}},{"id":"46c774ea-b7bd-4d37-86cc-09d1418a796b","block_type":"box","text":"lenders.","page_number":104,"box":{"x":117,"y":393,"width":63,"height":9}},{"id":"5b388d3c-42e0-4770-8c96-9f47101e0f69","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities","page_number":104,"box":{"x":117,"y":421,"width":746,"height":12}},{"id":"d81cc58d-ac4d-461c-9a11-b9140c555aa7","block_type":"box","text":"laws. Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and","page_number":104,"box":{"x":117,"y":437,"width":758,"height":12}},{"id":"c746bcda-7714-4dc6-ab2e-830818d5ce72","block_type":"box","text":"purchasers of interests in Loans, such as the Funds, may not have the protection of the anti-fraud","page_number":104,"box":{"x":117,"y":452,"width":729,"height":12}},{"id":"19a7afd4-9cf9-4aee-b9ec-2c9e0141624e","block_type":"box","text":"provisions of the federal securities laws as would otherwise be available for bonds or stocks. Instead,","page_number":104,"box":{"x":117,"y":468,"width":755,"height":12}},{"id":"fd2ed7d3-9ec1-48fa-b4b6-ae0aed5a8dc5","block_type":"box","text":"in such cases, parties generally would rely on the contractual provisions in the Loan agreement itself","page_number":104,"box":{"x":117,"y":483,"width":750,"height":12}},{"id":"1eb4725c-7938-4a67-90e8-80924938b87e","block_type":"box","text":"and common-law fraud protections under applicable state law.","page_number":104,"box":{"x":116,"y":499,"width":467,"height":12}},{"id":"e1dd3175-6ce6-4b07-9194-d2d90584fec3","block_type":"box","text":"Direct Lending","page_number":104,"box":{"x":116,"y":528,"width":108,"height":12}},{"id":"34ff039c-1550-450d-a7a6-443ee34d0b04","block_type":"box","text":". The Fund may act as the originator for direct loans and engage in direct lending. Direct","page_number":104,"box":{"x":226,"y":528,"width":658,"height":12}},{"id":"213d5826-a7f9-4e51-af59-1072134c8449","block_type":"box","text":"loans between the Fund and a borrower may not be administered by an underwriter or agent bank. The","page_number":104,"box":{"x":117,"y":543,"width":771,"height":12}},{"id":"79b8486c-f387-4276-b28f-83e09c2a17f4","block_type":"box","text":"Fund may provide financing to commercial borrowers directly or through companies acquired (or","page_number":104,"box":{"x":117,"y":559,"width":719,"height":12}},{"id":"386eef40-7709-4068-b574-eddc6ec70f39","block_type":"box","text":"created) and owned by or otherwise affiliated with the Fund. The terms of the direct loans are","page_number":104,"box":{"x":116,"y":574,"width":697,"height":12}},{"id":"7b32ffe4-efa7-47dd-a3ec-bab026637ca6","block_type":"box","text":"negotiated with borrowers in private transactions. Furthermore, a direct loan may be secured or","page_number":104,"box":{"x":117,"y":590,"width":712,"height":12}},{"id":"33404c9f-859f-421e-9d6e-98ce7cc4b801","block_type":"box","text":"unsecured.","page_number":104,"box":{"x":117,"y":605,"width":87,"height":10}},{"id":"c0687ac5-cd8b-4dc5-b91e-d2238e10e9aa","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of","page_number":104,"box":{"x":117,"y":634,"width":755,"height":12}},{"id":"a5423dd7-047e-4b6e-a8fa-80f0a51c0460","block_type":"box","text":"the borrower and/or any collateral for payment of interest and repayment of principal. The risks","page_number":104,"box":{"x":116,"y":649,"width":708,"height":12}},{"id":"ff4fb420-412c-411f-aad7-6038f7ba150f","block_type":"box","text":"associated with direct loans are substantially similar to those associated with investing in corporate","page_number":104,"box":{"x":116,"y":665,"width":733,"height":12}},{"id":"29e996fb-216d-46ee-b92f-bdd66bb55b2a","block_type":"box","text":"loans. In making a direct loan, the Fund is exposed to the risk that the borrower may default or become","page_number":104,"box":{"x":117,"y":680,"width":764,"height":12}},{"id":"d9816e7e-4fb8-4522-82df-71daf41baf08","block_type":"box","text":"insolvent and, consequently, that the Fund will lose money on the loan. Furthermore, direct loans may","page_number":104,"box":{"x":117,"y":696,"width":755,"height":12}},{"id":"77c8a382-def8-4fcb-8a75-e3c56ddd1355","block_type":"box","text":"subject the Fund to liquidity and interest rate risk and certain direct loans may be deemed illiquid.","page_number":104,"box":{"x":116,"y":712,"width":720,"height":11}},{"id":"7e21feb6-27f4-40ad-87f9-cfb8b59ed878","block_type":"box","text":"Direct loans are not publicly traded and may not have a secondary market. The lack of a secondary","page_number":104,"box":{"x":117,"y":727,"width":737,"height":12}},{"id":"580bd0f2-4f20-48ce-a78e-c9a02eaaaecb","block_type":"box","text":"market for direct loans may have an adverse impact on the ability of the Fund to dispose of a direct","page_number":104,"box":{"x":117,"y":742,"width":734,"height":12}},{"id":"eeaeb42e-fee0-40a6-8b8f-171ef0394e06","block_type":"box","text":"loan and/or to value the direct loan.","page_number":104,"box":{"x":117,"y":758,"width":260,"height":10}},{"id":"f9dffc10-c708-4969-a5c1-b1268584d40f","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the","page_number":104,"box":{"x":116,"y":787,"width":731,"height":12}},{"id":"73ef0ec2-ad2c-4df4-869c-a03c90f2eb88","block_type":"box","text":"Fund to originate loans on advantageous terms. In originating loans, the Fund will compete with a","page_number":104,"box":{"x":117,"y":802,"width":722,"height":12}},{"id":"7fbeac89-f213-409f-975c-4409e6442432","block_type":"box","text":"broad spectrum of lenders. Increased competition for, or a diminishment in the available supply of,","page_number":104,"box":{"x":117,"y":818,"width":727,"height":12}},{"id":"672fe2a9-09e3-471a-9308-f3dc2bb9e6d8","block_type":"box","text":"qualifying loans could result in lower yields on such loans, which could reduce Fund performance.","page_number":104,"box":{"x":116,"y":833,"width":730,"height":12}},{"id":"c91394b7-f8b3-476c-ba09-08688c81f7fe","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing","page_number":104,"box":{"x":116,"y":862,"width":719,"height":12}},{"id":"284d2d34-8253-491e-bdf6-2ef12905c165","block_type":"box","text":"significant financial or business difficulties, including companies involved in bankruptcy or other","page_number":104,"box":{"x":116,"y":877,"width":710,"height":12}},{"id":"8dba1744-fe3c-4ec5-89dd-c1f5909faec3","block_type":"box","text":"II-10","page_number":104,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e471ed00-808e-4a4f-8e64-1a62bae49c17","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":104,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3c6d8fc4-0fb0-46bf-9e58-03dcb9a1df0a","block_type":"box","text":"reorganization and liquidation proceedings. Although the terms of such financing may result in","page_number":105,"box":{"x":117,"y":87,"width":701,"height":12}},{"id":"b8d7379e-40b2-4a48-84e4-cf219df04b9c","block_type":"box","text":"significant financial returns to the Fund, they involve a substantial degree of risk. The level of analytical","page_number":105,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"a47905d4-d839-4fa4-8513-09eed96cdac4","block_type":"box","text":"sophistication, both financial and legal, necessary for successful financing to companies experiencing","page_number":105,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"1d130f4c-c19d-4528-945d-9f2e7194637a","block_type":"box","text":"significant business and financial difficulties is unusually high.","page_number":105,"box":{"x":116,"y":134,"width":461,"height":12}},{"id":"1ded6c58-9bad-4e3b-a384-546e4c38e47c","block_type":"box","text":"Credit Linked Securities.","page_number":105,"box":{"x":117,"y":162,"width":195,"height":10}},{"id":"b82ec62b-2f20-4dcd-8e2e-b97c1c782567","block_type":"box","text":"Among the income producing securities in which a Fund may invest are","page_number":105,"box":{"x":313,"y":162,"width":541,"height":12}},{"id":"c00eb7dc-c322-411e-be25-7c211e88eaa4","block_type":"box","text":"credit linked securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests","page_number":105,"box":{"x":116,"y":178,"width":768,"height":12}},{"id":"62f47b5e-5de1-4a1c-ae75-2dd74d24f1c1","block_type":"box","text":"in a derivative instrument or basket of derivative instruments, such as credit default swaps, interest rate","page_number":105,"box":{"x":117,"y":193,"width":771,"height":12}},{"id":"ba7a4451-f7fc-4c7e-813a-a8ce92a74479","block_type":"box","text":"swaps and other securities, in order to provide exposure to certain fixed-income markets. For instance,","page_number":105,"box":{"x":116,"y":209,"width":768,"height":12}},{"id":"5c33b0ac-4f2e-4b3e-acdd-0238a6969145","block_type":"box","text":"a Fund may invest in credit linked securities as a cash management tool in order to gain exposure to a","page_number":105,"box":{"x":116,"y":224,"width":765,"height":12}},{"id":"00007b4b-59a8-472c-b1c9-4e0be746174f","block_type":"box","text":"certain market and/or to remain fully invested when more traditional income producing securities are","page_number":105,"box":{"x":116,"y":240,"width":748,"height":12}},{"id":"bb341af6-39a8-4bc0-b9be-65e78a4bd811","block_type":"box","text":"not available.","page_number":105,"box":{"x":117,"y":255,"width":103,"height":10}},{"id":"198e389e-30da-49b8-a517-7c5b8ac478f3","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive","page_number":105,"box":{"x":117,"y":284,"width":770,"height":12}},{"id":"0b040892-7d3d-4956-9a0c-612b9371ddc0","block_type":"box","text":"periodic income payments (in the form of distributions) and payment of principal at the end of the term","page_number":105,"box":{"x":117,"y":300,"width":761,"height":12}},{"id":"673c25fb-9cc1-4510-a6f3-d7dc3fe211fa","block_type":"box","text":"of the security.","page_number":105,"box":{"x":116,"y":315,"width":114,"height":12}},{"id":"873d4397-3b38-45dd-8f08-bdc7f3f8886d","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s","page_number":105,"box":{"x":117,"y":344,"width":748,"height":12}},{"id":"eedd44e0-26e0-4005-8710-5400c8473a8b","block_type":"box","text":"potential obligations to, the counterparties to the derivative instruments and other securities in which","page_number":105,"box":{"x":117,"y":359,"width":747,"height":12}},{"id":"53ee5cc0-4ca7-4eb1-a9f0-7cfe117dbe24","block_type":"box","text":"the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the","page_number":105,"box":{"x":116,"y":375,"width":762,"height":12}},{"id":"9553fb14-07bd-41f1-89ec-27ec477b242e","block_type":"box","text":"issuer would receive a stream of payments over the term of the swap agreements provided that no","page_number":105,"box":{"x":117,"y":390,"width":736,"height":12}},{"id":"08a83983-c68f-4d8d-b4d4-deee2e21905e","block_type":"box","text":"event of default has occurred with respect to the referenced debt obligation upon which the swap is","page_number":105,"box":{"x":116,"y":406,"width":741,"height":12}},{"id":"24f00e84-3029-4761-8c87-31399ade815a","block_type":"box","text":"based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay","page_number":105,"box":{"x":117,"y":421,"width":756,"height":12}},{"id":"deca280c-e140-46c1-a60b-10418ac42376","block_type":"box","text":"the counterparty the par (or other agreed upon value) of the referenced debt obligation. This, in turn,","page_number":105,"box":{"x":116,"y":437,"width":749,"height":12}},{"id":"84ae0995-c75d-46df-a093-cc75e9447504","block_type":"box","text":"would reduce the amount of income and principal that","page_number":105,"box":{"x":116,"y":452,"width":404,"height":12}},{"id":"860749a8-e384-4aef-a5b2-f239e8342398","block_type":"box","text":"a Fund would receive. A Fund’s investments in","page_number":105,"box":{"x":521,"y":452,"width":351,"height":10}},{"id":"9fef381e-a1be-43e1-a1f8-358ef3783522","block_type":"box","text":"these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":105,"box":{"x":116,"y":468,"width":750,"height":12}},{"id":"f60c0c6a-95d5-43ac-a3ba-f8b466190bdc","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk","page_number":105,"box":{"x":116,"y":483,"width":766,"height":12}},{"id":"1cd5c0e6-1e9d-4654-b53f-162f165ef355","block_type":"box","text":"and management risk. It is also expected that the securities will be exempt from registration under the","page_number":105,"box":{"x":116,"y":499,"width":761,"height":12}},{"id":"b3785280-b9b0-4096-91e4-87d40d7e3599","block_type":"box","text":"Securities Act. Accordingly, there may be no established trading market for the securities and they may","page_number":105,"box":{"x":116,"y":514,"width":771,"height":12}},{"id":"6303cf05-0b59-4113-8f69-de12af759fdc","block_type":"box","text":"constitute illiquid investments.","page_number":105,"box":{"x":116,"y":530,"width":227,"height":12}},{"id":"9ae0f520-65ae-496b-9fac-55d32bbabc2a","block_type":"box","text":"Debt Securities.","page_number":105,"box":{"x":116,"y":559,"width":126,"height":9}},{"id":"caa0d53e-7fbb-4b09-b78f-6bc281a202b7","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will","page_number":105,"box":{"x":243,"y":559,"width":633,"height":11}},{"id":"af285dd3-1604-4548-84e2-62ffc6a7c43d","block_type":"box","text":"not make timely payments of principal and interest. The degree of credit risk depends on the issuer’s","page_number":105,"box":{"x":117,"y":574,"width":751,"height":12}},{"id":"f1eb731d-538e-4bef-8545-05b536d92912","block_type":"box","text":"financial condition and on the terms of the debt securities. Changes in an issuer’s credit rating or the","page_number":105,"box":{"x":116,"y":590,"width":749,"height":12}},{"id":"49a52a63-6103-48b4-98ef-d798f2ad82ff","block_type":"box","text":"market’s perception of an issuer’s creditworthiness may also affect the value of a Fund’s investment in","page_number":105,"box":{"x":117,"y":605,"width":763,"height":12}},{"id":"7050f758-2099-4a19-b508-8fc1affa7bac","block_type":"box","text":"that issuer. Credit risk is reduced to the extent a Fund limits its debt investments to U.S. Government","page_number":105,"box":{"x":116,"y":621,"width":754,"height":9}},{"id":"859bd3e1-6bd9-4656-8368-ce1b8ccb79ea","block_type":"box","text":"Securities.","page_number":105,"box":{"x":116,"y":636,"width":83,"height":10}},{"id":"a6600e3a-cf7a-413c-8ceb-63b338b01de9","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the","page_number":105,"box":{"x":116,"y":665,"width":709,"height":12}},{"id":"2a99f465-5015-4e16-8e25-52eff2f1276f","block_type":"box","text":"security may fall when interest rates rise. If interest rates move sharply in a manner not anticipated by","page_number":105,"box":{"x":116,"y":680,"width":755,"height":12}},{"id":"ac279188-235f-40bb-a9bb-5acc536fbf99","block_type":"box","text":"Fund management, a Fund’s investments in debt securities could be adversely affected and the Fund","page_number":105,"box":{"x":117,"y":696,"width":752,"height":12}},{"id":"bda3337d-3c0f-462a-8fd8-68bb05637c08","block_type":"box","text":"could lose money. In general, the market price of debt securities with longer maturities will go up or","page_number":105,"box":{"x":116,"y":711,"width":735,"height":12}},{"id":"229e8fb3-f83f-4c0d-940d-b9c002d7da0e","block_type":"box","text":"down more in response to changes in interest rates than will the market price of shorter-term debt","page_number":105,"box":{"x":116,"y":727,"width":725,"height":12}},{"id":"3d2253e2-4ddc-40d5-a3b9-0752234e6e5f","block_type":"box","text":"securities.","page_number":105,"box":{"x":116,"y":743,"width":74,"height":9}},{"id":"11f8658c-a0cf-43e9-83fe-66341edc623c","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended","page_number":105,"box":{"x":117,"y":771,"width":738,"height":12}},{"id":"d7fa7edb-a09d-425d-9bcc-0fc1d2beaa5f","block_type":"box","text":"because of slower than expected principal payments. This may lock in a below-market interest rate and","page_number":105,"box":{"x":117,"y":787,"width":765,"height":12}},{"id":"70effa43-0451-4aec-b578-5c73e1d208dd","block_type":"box","text":"extend the duration of these fixed-income securities, especially mortgage-related securities, making","page_number":105,"box":{"x":116,"y":802,"width":739,"height":12}},{"id":"c5c7caa0-3f16-4d04-8856-cdc50895c397","block_type":"box","text":"them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, these","page_number":105,"box":{"x":116,"y":818,"width":750,"height":12}},{"id":"baec1b70-6df2-4a19-9c46-b3a8d90c5270","block_type":"box","text":"securities may exhibit additional volatility and lose value. This is known as extension risk.","page_number":105,"box":{"x":116,"y":833,"width":665,"height":12}},{"id":"e10b38cf-6261-457e-993f-8d4a79f0fbd4","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in","page_number":105,"box":{"x":116,"y":862,"width":745,"height":12}},{"id":"889d418a-d83d-43cb-a10c-9965549f7529","block_type":"box","text":"prevailing interest rates. Fixed-income securities with longer maturities, which tend to produce higher","page_number":105,"box":{"x":117,"y":878,"width":753,"height":11}},{"id":"6218e42f-eb4b-4add-8585-94e5b0a1a4b7","block_type":"box","text":"II-11","page_number":105,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"94ff9356-3d04-45ef-9d9b-94f78a9608b7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":105,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a77b2210-8c91-410e-a163-8f06ff9944fe","block_type":"box","text":"yields, are subject to potentially greater capital appreciation and depreciation than securities with","page_number":106,"box":{"x":116,"y":87,"width":723,"height":12}},{"id":"d7a11aa3-c588-43b9-91f2-fb0777ce5e84","block_type":"box","text":"shorter maturities. The Funds are not restricted to any maximum or minimum time to maturity in","page_number":106,"box":{"x":116,"y":103,"width":714,"height":12}},{"id":"6baf3b88-ca4d-4449-b593-4b8b4d3baa12","block_type":"box","text":"purchasing individual portfolio securities, and the average maturity of a Fund’s assets will vary.","page_number":106,"box":{"x":117,"y":118,"width":707,"height":12}},{"id":"bfdc5e8f-9b24-4760-8069-3c9b6c5cd01c","block_type":"box","text":"Floating and Variable Rate Securities.","page_number":106,"box":{"x":116,"y":149,"width":280,"height":12}},{"id":"90605e83-5a15-4f0b-bcd6-5c7991a29ce7","block_type":"box","text":"Certain Funds may invest in debt instruments that pay a variable","page_number":106,"box":{"x":398,"y":149,"width":490,"height":12}},{"id":"3be1b553-2a33-4850-9066-640aa512a9f8","block_type":"box","text":"coupon rate. Securities with floating or variable interest rates can be less sensitive to interest rate","page_number":106,"box":{"x":116,"y":165,"width":728,"height":12}},{"id":"dd6b10ee-510d-420d-bd9d-27486d118fad","block_type":"box","text":"changes than securities with fixed interest rates, but may decline in value if their interest rates do not","page_number":106,"box":{"x":116,"y":180,"width":752,"height":12}},{"id":"4ff8fe01-39c1-4d88-95da-3d0161f8aadc","block_type":"box","text":"rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not","page_number":106,"box":{"x":117,"y":196,"width":732,"height":12}},{"id":"69aabda3-f32f-4673-b93d-4487a617b395","block_type":"box","text":"generally increase in value if interest rates decline. The","page_number":106,"box":{"x":116,"y":211,"width":415,"height":12}},{"id":"8859575b-deeb-4d07-a2a1-4b457cc99caf","block_type":"box","text":"impact of interest rate changes on floating rate","page_number":106,"box":{"x":532,"y":211,"width":350,"height":12}},{"id":"88fdc0f8-46ef-4a35-9e82-b0942980a344","block_type":"box","text":"investments is typically mitigated by the periodic interest rate reset of the investments. Benchmark","page_number":106,"box":{"x":117,"y":227,"width":733,"height":12}},{"id":"97a6fe0d-0563-40c0-808d-c916593d61b7","block_type":"box","text":"interest rates used for floating and variable rate securities may not accurately track market interest","page_number":106,"box":{"x":117,"y":242,"width":734,"height":12}},{"id":"1e09af23-93e5-4064-9e07-7fd14cf14e2a","block_type":"box","text":"rates.","page_number":106,"box":{"x":117,"y":258,"width":45,"height":9}},{"id":"b7472e46-b74f-490d-94bc-13363680b33e","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":106,"box":{"x":117,"y":289,"width":179,"height":9}},{"id":"aa7f23e7-a288-4206-998c-854916d1f9aa","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income","page_number":106,"box":{"x":297,"y":289,"width":577,"height":12}},{"id":"fec5979f-c17f-44e0-a3be-44882ab42390","block_type":"box","text":"securities or other instruments whose principal value is periodically adjusted according to the rate of","page_number":106,"box":{"x":116,"y":304,"width":746,"height":12}},{"id":"4afe5a6a-04d5-4f03-b922-07d3d544cee2","block_type":"box","text":"inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that","page_number":106,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"d36a6e19-6358-4cfa-86c5-0818fb20eff2","block_type":"box","text":"accrues inflation into the principal value of the bond. Most other issuers pay out the Consumer Price","page_number":106,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"fcc7bbac-2935-49f2-bb13-c47fcd99a73f","block_type":"box","text":"Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":106,"box":{"x":117,"y":351,"width":417,"height":12}},{"id":"0ad9ff8f-2ce6-4744-8feb-1c8fd92e072c","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years,","page_number":106,"box":{"x":117,"y":382,"width":728,"height":12}},{"id":"bef91e01-3d08-492c-ad00-0d13e8563c53","block_type":"box","text":"although it is possible that securities with other maturities will be issued in the future. The U.S.","page_number":106,"box":{"x":116,"y":397,"width":703,"height":12}},{"id":"77d321a1-08f9-4b43-925f-e13cfaf81bd6","block_type":"box","text":"Treasury securities pay interest on a semi-annual basis, equal to a fixed percentage of the inflation","page_number":106,"box":{"x":116,"y":413,"width":738,"height":12}},{"id":"5c18c413-726d-4055-ba37-ef3d00a32109","block_type":"box","text":"adjusted principal amount. For example, if a Fund purchased an inflation-indexed bond with a par","page_number":106,"box":{"x":116,"y":428,"width":727,"height":12}},{"id":"ddeb0311-759d-4ba9-927d-d8dcfa1f2d1a","block_type":"box","text":"value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and inflation over","page_number":106,"box":{"x":116,"y":443,"width":753,"height":13}},{"id":"337edc6e-6f1f-4dea-be74-e05026e0980a","block_type":"box","text":"the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first semi","page_number":106,"box":{"x":116,"y":458,"width":736,"height":13}},{"id":"9129ffec-b0be-48fd-814f-7078441831b0","block_type":"box","text":"annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the","page_number":106,"box":{"x":116,"y":474,"width":766,"height":13}},{"id":"bbc38d5d-a852-4635-8580-622cd0f40c56","block_type":"box","text":"year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be","page_number":106,"box":{"x":116,"y":490,"width":764,"height":12}},{"id":"004776a8-5e27-4539-aafe-9a52102c9f15","block_type":"box","text":"$1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":106,"box":{"x":116,"y":505,"width":689,"height":13}},{"id":"e8edffce-aa0f-48e3-a4e3-aa0a2325914b","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds","page_number":106,"box":{"x":117,"y":537,"width":747,"height":12}},{"id":"6cd07eab-40f3-4060-aefd-bec5ef353f41","block_type":"box","text":"will be adjusted downward, and, consequently, the interest payable on these securities (calculated with","page_number":106,"box":{"x":116,"y":552,"width":769,"height":12}},{"id":"0fc8966e-4274-40a2-a16d-c5b02b32f4cd","block_type":"box","text":"respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon","page_number":106,"box":{"x":117,"y":568,"width":754,"height":12}},{"id":"8b12cf56-5a32-4752-91c9-a013478418a4","block_type":"box","text":"maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds,","page_number":106,"box":{"x":117,"y":583,"width":755,"height":12}},{"id":"fad7fa1e-bb5d-47d2-9d72-17d618f45894","block_type":"box","text":"even during a period of deflation. However, the current market value of the bonds is not guaranteed,","page_number":106,"box":{"x":116,"y":599,"width":748,"height":12}},{"id":"3c641afb-0310-46b6-9768-7474fd4df923","block_type":"box","text":"and will fluctuate. Certain Funds may also invest in other inflation related bonds which may or may not","page_number":106,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"763a7854-127e-49cf-8386-251c9f72634a","block_type":"box","text":"provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of","page_number":106,"box":{"x":117,"y":630,"width":752,"height":12}},{"id":"3ee28b7d-9b53-4c11-974a-186f5072479d","block_type":"box","text":"the bond repaid at maturity may be less than the original principal. In addition, if the Fund purchases","page_number":106,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"d605c835-a8fb-41f4-a990-53a2c01c4573","block_type":"box","text":"inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign inflation","page_number":106,"box":{"x":117,"y":661,"width":761,"height":12}},{"id":"5f622631-96b3-4cec-a910-cd212f5b0830","block_type":"box","text":"index may not be correlated to the rate of inflation in the United States.","page_number":106,"box":{"x":117,"y":676,"width":523,"height":12}},{"id":"f72b5752-3279-4b28-9452-b546acd28c66","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest","page_number":106,"box":{"x":116,"y":707,"width":727,"height":12}},{"id":"593e74a6-1c2d-44f0-8b43-0ac6b031f746","block_type":"box","text":"rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates and the","page_number":106,"box":{"x":117,"y":723,"width":736,"height":12}},{"id":"2e16bb70-715b-49ee-b7dd-1d780d72d776","block_type":"box","text":"rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real","page_number":106,"box":{"x":117,"y":738,"width":717,"height":11}},{"id":"bf2147b2-4b54-4b00-8116-38e68d70a21e","block_type":"box","text":"interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if","page_number":106,"box":{"x":117,"y":754,"width":739,"height":12}},{"id":"0e6eb869-7eeb-4d9f-9932-d5d6b2558e5d","block_type":"box","text":"nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a","page_number":106,"box":{"x":117,"y":769,"width":764,"height":12}},{"id":"b0f3da7d-1dde-49c4-859e-b0fcf65a9eb8","block_type":"box","text":"decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of","page_number":106,"box":{"x":116,"y":785,"width":745,"height":11}},{"id":"534f4014-159d-4b4d-9db6-e019b1cc7cad","block_type":"box","text":"inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":106,"box":{"x":117,"y":800,"width":570,"height":12}},{"id":"edb609fa-bf4b-4b69-be98-7e2a799d3b34","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term","page_number":106,"box":{"x":116,"y":831,"width":725,"height":12}},{"id":"e635e026-ad8d-4b89-926c-4b686e203b54","block_type":"box","text":"increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than","page_number":106,"box":{"x":117,"y":847,"width":731,"height":12}},{"id":"421fe4d1-c718-4efb-b379-3a5e3b256752","block_type":"box","text":"inflation (for example, due to changes in currency exchange rates), investors in these securities may","page_number":106,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"ea6f0fc7-048c-4f0a-a637-a1174245ce0b","block_type":"box","text":"not be protected to the extent that the increase is not reflected in the bond’s inflation measure.","page_number":106,"box":{"x":117,"y":878,"width":704,"height":12}},{"id":"a48690a1-a8e0-487e-8694-a99d79714d62","block_type":"box","text":"II-12","page_number":106,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"1c077f1f-2c51-4e10-a3e4-a0977342af72","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":106,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c2032645-a465-4f6c-aa8d-240433ac8b51","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is","page_number":107,"box":{"x":117,"y":87,"width":750,"height":12}},{"id":"69a7fd42-e34c-42cf-af54-f1cb6c283cf6","block_type":"box","text":"the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S.","page_number":107,"box":{"x":116,"y":102,"width":739,"height":13}},{"id":"268fa3f5-f35e-49be-8b57-ccc5a3f6cc19","block_type":"box","text":"Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of","page_number":107,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"c43edc1f-2e42-413c-b531-69e6fe7b03e7","block_type":"box","text":"components such as housing, food, transportation and energy. Inflation-indexed bonds issued by a","page_number":107,"box":{"x":116,"y":134,"width":739,"height":12}},{"id":"bf9ba6fd-d6b3-4f28-9352-1de24438f84d","block_type":"box","text":"foreign government are generally adjusted to reflect a comparable inflation index, calculated by that","page_number":107,"box":{"x":116,"y":149,"width":743,"height":12}},{"id":"e0a5dca6-e5b1-4215-8672-01ec127100e3","block_type":"box","text":"government. There can be no assurance that the CPI-U or any foreign inflation index will accurately","page_number":107,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"a25f7795-47bc-4f68-8279-5c5a61cf3ce1","block_type":"box","text":"measure the real rate of inflation in the prices of goods and services. Moreover, there can be no","page_number":107,"box":{"x":117,"y":180,"width":716,"height":12}},{"id":"2ada4318-c1cc-4e6a-bcbc-b4fdba320412","block_type":"box","text":"assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":107,"box":{"x":116,"y":196,"width":745,"height":12}},{"id":"f9fa013a-172f-4828-bede-b3c13d98d01c","block_type":"box","text":"United States.","page_number":107,"box":{"x":117,"y":211,"width":109,"height":10}},{"id":"525f02be-98a1-4efd-bc3d-154c2974c313","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary","page_number":107,"box":{"x":116,"y":241,"width":750,"height":12}},{"id":"4f4efb63-fb40-4990-8ac8-e53f089150ff","block_type":"box","text":"income, even though investors do not receive their principal until maturity.","page_number":107,"box":{"x":117,"y":257,"width":552,"height":12}},{"id":"2fb31679-e690-4d18-9181-da936106f03e","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":107,"box":{"x":117,"y":286,"width":265,"height":12}},{"id":"d1f1aeed-0912-415a-91d0-9fe379386273","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which","page_number":107,"box":{"x":383,"y":286,"width":492,"height":12}},{"id":"0e259fb6-8a7c-4bf6-af0a-4dd3e11e5ddf","block_type":"box","text":"are securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent","page_number":107,"box":{"x":116,"y":302,"width":750,"height":12}},{"id":"5aafe442-1d41-4f55-ac0f-bcdd20f91928","block_type":"box","text":"quality by a Fund’s Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or","page_number":107,"box":{"x":116,"y":317,"width":734,"height":12}},{"id":"dc7afd9f-830a-4940-8252-a5faf6114bde","block_type":"box","text":"AAA by S&P. It should be noted that debt obligations rated in the lowest of the top four ratings (","page_number":107,"box":{"x":116,"y":333,"width":708,"height":12}},{"id":"360e911c-9cc2-428e-9a9c-6a74a6d16bd7","block_type":"box","text":"i.e.","page_number":107,"box":{"x":825,"y":333,"width":20,"height":9}},{"id":"96409118-c745-48d5-9d1d-048b51c91fc7","block_type":"box","text":",","page_number":107,"box":{"x":848,"y":341,"width":8,"height":3}},{"id":"3936cfca-4fdc-41f3-8a5e-dd81c8071dad","block_type":"box","text":"“Baa” by Moody’s or “BBB” by S&P) are considered to have some speculative characteristics and are","page_number":107,"box":{"x":116,"y":348,"width":756,"height":12}},{"id":"07a5e47f-5388-46e4-bee8-069e1a8c6a18","block_type":"box","text":"more sensitive to economic change than higher rated securities. If an investment grade security of a","page_number":107,"box":{"x":117,"y":364,"width":747,"height":12}},{"id":"5cbab6c1-d28a-49a7-be27-eb108a9f58e9","block_type":"box","text":"Fund is subsequently downgraded below investment grade, the Fund’s Manager will consider such an","page_number":107,"box":{"x":117,"y":380,"width":761,"height":11}},{"id":"24aec02c-4285-4e40-bdc7-bb3a4d5c5819","block_type":"box","text":"event in determining whether the Fund should continue to hold the security. Subject to its investment","page_number":107,"box":{"x":116,"y":395,"width":752,"height":12}},{"id":"4df28721-a3d0-44f2-8a1b-77dd51e0463b","block_type":"box","text":"strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":107,"box":{"x":116,"y":410,"width":679,"height":12}},{"id":"03c99418-4c2f-484d-8343-a42df03e82a4","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":107,"box":{"x":116,"y":440,"width":566,"height":12}},{"id":"3d5c73cd-24ca-4a0c-ba9e-0fb038f7866d","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":107,"box":{"x":116,"y":477,"width":296,"height":13}},{"id":"9c718161-ca4b-4327-8b47-844b35d27743","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to","page_number":107,"box":{"x":117,"y":507,"width":711,"height":12}},{"id":"5c8d70a6-21d6-480d-a0f6-2e60a6ad11f2","block_type":"box","text":"investors as “junk bonds” are debt securities that are rated below investment grade by the major rating","page_number":107,"box":{"x":117,"y":523,"width":764,"height":12}},{"id":"7ed7c2a1-5418-4a1f-a23f-33a09cda436a","block_type":"box","text":"agencies or are securities that Fund management believes are of comparable quality. While generally","page_number":107,"box":{"x":116,"y":538,"width":759,"height":12}},{"id":"784627ff-7be0-4383-a565-c14a3a4120c5","block_type":"box","text":"providing greater income and opportunity for gain, non-investment grade debt securities may be","page_number":107,"box":{"x":117,"y":554,"width":715,"height":12}},{"id":"54ca1eaa-79c0-4e4d-8ffe-973193b6ae29","block_type":"box","text":"subject to greater risks than securities which have higher credit ratings, including a high risk of default,","page_number":107,"box":{"x":116,"y":569,"width":764,"height":12}},{"id":"c943683e-71f4-4133-9606-b8870cde4d02","block_type":"box","text":"and their yields will fluctuate over time. High yield securities will generally be in the lower rating","page_number":107,"box":{"x":116,"y":585,"width":709,"height":12}},{"id":"306198e7-4eff-4df4-99b7-5765cd8cf804","block_type":"box","text":"categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P) or","page_number":107,"box":{"x":116,"y":600,"width":755,"height":12}},{"id":"b4be70aa-db77-4680-842c-1a9db74eed68","block_type":"box","text":"will be non-rated. The credit rating of a high yield security does not necessarily address its market","page_number":107,"box":{"x":116,"y":616,"width":730,"height":12}},{"id":"9997a4fa-6bf3-4720-803e-df668abd2b7b","block_type":"box","text":"value risk, and ratings may from time to time change, positively or negatively, to reflect developments","page_number":107,"box":{"x":116,"y":631,"width":757,"height":12}},{"id":"2e30ae72-88a8-4f4f-a1d5-c04e5323b673","block_type":"box","text":"regarding the issuer’s financial condition. High yield securities are considered to be speculative with","page_number":107,"box":{"x":117,"y":647,"width":743,"height":12}},{"id":"eb5b443d-5c8d-4814-942e-87a50178e45d","block_type":"box","text":"respect to the capacity of the issuer to timely repay principal and pay interest or dividends in","page_number":107,"box":{"x":117,"y":662,"width":682,"height":12}},{"id":"255c5b20-1d8b-4e0f-b60d-ee46325dbc11","block_type":"box","text":"accordance with the terms of the obligation and may have more credit risk than higher rated securities.","page_number":107,"box":{"x":116,"y":678,"width":761,"height":12}},{"id":"d9778439-4294-4fb6-a7f3-8245e89a9c76","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":107,"box":{"x":116,"y":708,"width":464,"height":12}},{"id":"caae86fd-d3b5-415f-bea4-2b93316d7831","block_type":"box","text":"• Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to","page_number":107,"box":{"x":117,"y":731,"width":731,"height":12}},{"id":"7ad91c91-2452-448a-ae52-93b708832981","block_type":"box","text":"adverse changes in the issuer’s industry and to general economic conditions. Issuers of junk","page_number":107,"box":{"x":150,"y":746,"width":686,"height":12}},{"id":"7bb081b6-f557-42ac-a7ca-9d879f82deb4","block_type":"box","text":"bonds may be unable to meet their interest or principal payment obligations because of an","page_number":107,"box":{"x":150,"y":761,"width":669,"height":13}},{"id":"bb1a15fe-e751-469e-a8a9-fc9d256f92c9","block_type":"box","text":"economic downturn, specific issuer developments or the unavailability of additional financing.","page_number":107,"box":{"x":150,"y":777,"width":689,"height":12}},{"id":"05b47540-c93a-41c6-bb62-d6b146acfdf0","block_type":"box","text":"• The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets","page_number":107,"box":{"x":117,"y":800,"width":740,"height":12}},{"id":"d6f14dd9-c71b-431f-864e-7fb523a901db","block_type":"box","text":"than issuers of investment grade bonds. If the issuer experiences financial stress, it may be","page_number":107,"box":{"x":150,"y":815,"width":678,"height":12}},{"id":"71e8e994-6b24-4b65-8479-66241837b518","block_type":"box","text":"unable to meet its debt obligations. The issuer’s ability to pay its debt obligations also may be","page_number":107,"box":{"x":150,"y":831,"width":697,"height":12}},{"id":"4036cc5a-bfea-4394-af86-9895ab7766dd","block_type":"box","text":"lessened by specific issuer developments, or the unavailability of additional financing. Issuers of","page_number":107,"box":{"x":150,"y":846,"width":717,"height":12}},{"id":"8fb3110b-2677-4cee-b337-fae615b209d2","block_type":"box","text":"high yield securities are often in the growth stage of their development and/or involved in a","page_number":107,"box":{"x":150,"y":862,"width":677,"height":12}},{"id":"107ae2e0-6d0c-4218-b147-8a05f6030054","block_type":"box","text":"reorganization or takeover.","page_number":107,"box":{"x":150,"y":877,"width":204,"height":12}},{"id":"b56d2acf-0ac3-4ea9-b6fb-ac623ce02202","block_type":"box","text":"II-13","page_number":107,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e43ec8e1-32be-4c58-93ed-4fc987111210","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":107,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4e809655-0945-47f8-89c7-601a026f6a94","block_type":"box","text":"• Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its","page_number":108,"box":{"x":117,"y":87,"width":754,"height":12}},{"id":"d8ebf896-dfdc-4240-85a2-ef85f79f1ba4","block_type":"box","text":"obligations, the senior obligations are generally paid off before the junior obligations, which will","page_number":108,"box":{"x":150,"y":102,"width":706,"height":13}},{"id":"45e31c62-ae49-49f3-9465-b654adae08a2","block_type":"box","text":"potentially limit a Fund’s ability to fully recover principal or to receive interest payments when","page_number":108,"box":{"x":150,"y":118,"width":693,"height":12}},{"id":"f25d9a82-a88f-4efa-9216-dfe242ace9a2","block_type":"box","text":"senior securities are in default. Thus, investors in high yield securities have a lower degree of","page_number":108,"box":{"x":150,"y":134,"width":696,"height":12}},{"id":"faf7c92c-2cce-4b5b-9dec-3bef2505ad12","block_type":"box","text":"protection with respect to principal and interest payments than do investors in higher rated","page_number":108,"box":{"x":150,"y":149,"width":674,"height":12}},{"id":"a90a1d4f-be0e-4293-971b-0276f1f7d60e","block_type":"box","text":"securities.","page_number":108,"box":{"x":150,"y":165,"width":80,"height":9}},{"id":"e9eb6fff-c554-495c-b7cd-8a3ca6f5f505","block_type":"box","text":"• Junk bonds frequently have redemption features that permit an issuer to repurchase the security","page_number":108,"box":{"x":117,"y":188,"width":753,"height":12}},{"id":"6805b30e-36c6-4ac9-9e30-d727465f824e","block_type":"box","text":"from a Fund before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the","page_number":108,"box":{"x":149,"y":203,"width":738,"height":12}},{"id":"87ace10f-5768-4ff1-8ae4-80b05a2d97f9","block_type":"box","text":"proceeds in bonds with lower yields and may lose income.","page_number":108,"box":{"x":150,"y":219,"width":437,"height":12}},{"id":"9bc11c0b-c4b0-46ce-bea2-b973b85cf99e","block_type":"box","text":"• Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments","page_number":108,"box":{"x":117,"y":242,"width":753,"height":12}},{"id":"efd2c359-c171-485b-932e-be418d67033f","block_type":"box","text":"may have a greater impact on the prices of junk bonds than on those of other higher rated fixed","page_number":108,"box":{"x":150,"y":258,"width":713,"height":12}},{"id":"c1d79476-0346-49fc-9ef7-ea08b9b54a79","block_type":"box","text":"income securities.","page_number":108,"box":{"x":150,"y":273,"width":139,"height":10}},{"id":"945b62a5-92a9-4071-b559-df0cd5d67265","block_type":"box","text":"• Junk bonds may be less liquid than higher rated fixed-income securities even under normal","page_number":108,"box":{"x":117,"y":296,"width":714,"height":12}},{"id":"2fcc9395-51be-48b1-953d-523a0a5315a9","block_type":"box","text":"economic conditions. Under certain economic and/or market conditions, a Fund may have difficulty","page_number":108,"box":{"x":150,"y":312,"width":738,"height":12}},{"id":"f0884a74-6b3b-4ca9-9366-bd6fcc57ad2f","block_type":"box","text":"disposing of certain high yield securities due to the limited number of investors in that sector of the","page_number":108,"box":{"x":150,"y":327,"width":734,"height":12}},{"id":"d0cf16cd-9e4f-4631-8b0d-6c91ac405f17","block_type":"box","text":"market. There are fewer dealers in the junk bond market, and there may be significant differences","page_number":108,"box":{"x":150,"y":343,"width":730,"height":12}},{"id":"f87d6904-fc26-46cb-8729-32701d1b8a85","block_type":"box","text":"in the prices quoted for junk bonds by the dealers, and such quotations may not be the actual","page_number":108,"box":{"x":150,"y":358,"width":698,"height":12}},{"id":"68ff879e-6b8a-43e3-9d92-d39d901d8ce4","block_type":"box","text":"prices available for a purchase or sale. Because junk bonds are less liquid than higher rated","page_number":108,"box":{"x":150,"y":374,"width":688,"height":12}},{"id":"134416cf-fe49-40a6-8caa-d57f745a20a5","block_type":"box","text":"bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities than in","page_number":108,"box":{"x":150,"y":389,"width":720,"height":12}},{"id":"99b6ff81-9abb-404e-8a9a-2cb1d060f641","block_type":"box","text":"the case of securities trading in a more liquid market.","page_number":108,"box":{"x":150,"y":405,"width":398,"height":12}},{"id":"b538efba-5817-47cd-8b4b-a0b995de8ac2","block_type":"box","text":"• The secondary markets for high yield securities are not as liquid as the secondary markets for","page_number":108,"box":{"x":117,"y":428,"width":734,"height":12}},{"id":"306fd94c-fabe-4233-896a-eba3d7c26bf5","block_type":"box","text":"higher rated securities. The secondary markets for high yield securities are concentrated in","page_number":108,"box":{"x":150,"y":444,"width":680,"height":12}},{"id":"d01ff52b-4a9d-439c-b889-a88e7e669a99","block_type":"box","text":"relatively few market makers and participants in the markets are mostly institutional investors,","page_number":108,"box":{"x":150,"y":459,"width":699,"height":12}},{"id":"d08e9ac0-cb34-4899-9301-d2bc1a9c222e","block_type":"box","text":"including insurance companies, banks, other financial institutions and mutual funds. In addition,","page_number":108,"box":{"x":150,"y":475,"width":712,"height":12}},{"id":"42f5d5f4-8337-48b4-9c2b-bc58b3edb2ab","block_type":"box","text":"the trading volume for high yield securities is generally lower than that for higher rated securities","page_number":108,"box":{"x":150,"y":490,"width":718,"height":12}},{"id":"d3541c65-5a9f-404e-9520-e6c3e9f6cfc9","block_type":"box","text":"and the secondary markets could contract under adverse market or economic conditions","page_number":108,"box":{"x":150,"y":506,"width":662,"height":12}},{"id":"5ece27bb-41d9-4a5a-be81-9334cee611c9","block_type":"box","text":"independent of any specific adverse changes in the condition of a particular issuer. Under certain","page_number":108,"box":{"x":150,"y":521,"width":725,"height":12}},{"id":"a81562b5-d1f4-4800-be11-b9180b9ed8ea","block_type":"box","text":"economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":108,"box":{"x":150,"y":537,"width":695,"height":12}},{"id":"f9c71a9e-c05b-49f0-ae71-8db4fbe456a6","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. An illiquid secondary","page_number":108,"box":{"x":150,"y":552,"width":728,"height":12}},{"id":"a8c9023a-dc43-4c4e-8c21-6a75fcbfb3b7","block_type":"box","text":"market may adversely affect the market price of the high yield security, which may result in","page_number":108,"box":{"x":150,"y":568,"width":678,"height":12}},{"id":"36ce5966-441a-4631-856b-291c956dfa65","block_type":"box","text":"increased difficulty selling the particular issue and obtaining accurate market quotations on the","page_number":108,"box":{"x":150,"y":583,"width":706,"height":12}},{"id":"dbee956b-8afd-4d2e-8e87-93fafa09449e","block_type":"box","text":"issue when valuing a Fund’s assets. Market quotations on high yield securities are available only","page_number":108,"box":{"x":150,"y":599,"width":722,"height":12}},{"id":"c40b2ab5-2f62-4390-9a8f-f6a20159b3b5","block_type":"box","text":"from a limited number of dealers, and such quotations may not be the actual prices available for a","page_number":108,"box":{"x":149,"y":614,"width":731,"height":12}},{"id":"8940f80b-4250-4c30-a85e-26c86b72c5aa","block_type":"box","text":"purchase or sale. When the secondary market for high yield securities becomes more illiquid, or in","page_number":108,"box":{"x":150,"y":630,"width":734,"height":12}},{"id":"c4ea1377-8a1c-49e3-956b-675652525b53","block_type":"box","text":"the absence of readily available market quotations for such securities, the relative lack of reliable","page_number":108,"box":{"x":150,"y":645,"width":723,"height":12}},{"id":"32040d40-fc08-4bc6-820d-dc889a664402","block_type":"box","text":"objective data makes it more difficult to value a Fund’s securities, and judgment plays a more","page_number":108,"box":{"x":150,"y":661,"width":691,"height":12}},{"id":"167b1423-98d1-4647-a49f-f4e006db5a07","block_type":"box","text":"important role in determining such valuations.","page_number":108,"box":{"x":150,"y":676,"width":337,"height":12}},{"id":"5e78036d-294e-40b3-ab12-25dd14daf9ad","block_type":"box","text":"• A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate","page_number":108,"box":{"x":117,"y":699,"width":757,"height":13}},{"id":"abf525c9-72c5-46b7-bd58-74ab8e4c446d","block_type":"box","text":"new terms with a defaulting issuer.","page_number":108,"box":{"x":150,"y":715,"width":256,"height":12}},{"id":"c0fb4a97-833f-4530-943b-5327ee3cb75b","block_type":"box","text":"• The junk bond markets may react strongly to adverse news about an issuer or the economy, or to","page_number":108,"box":{"x":117,"y":738,"width":756,"height":12}},{"id":"0e2eb349-b378-4240-a696-493fafe34848","block_type":"box","text":"the perception or expectation of adverse news, whether or not it is based on fundamental analysis.","page_number":108,"box":{"x":150,"y":754,"width":731,"height":12}},{"id":"72254d82-7401-4091-ae64-bc829b43dc9a","block_type":"box","text":"Additionally, prices for high yield securities may be affected by legislative and regulatory","page_number":108,"box":{"x":149,"y":769,"width":654,"height":12}},{"id":"063f24e9-8a44-4632-8ea2-f167d695ca50","block_type":"box","text":"developments. These developments could adversely affect a Fund’s NAV and investment","page_number":108,"box":{"x":150,"y":785,"width":664,"height":12}},{"id":"f4ba46e8-06d9-45a4-93b8-555cae9cfc24","block_type":"box","text":"practices, the secondary market for high yield securities, the financial condition of issuers of these","page_number":108,"box":{"x":150,"y":800,"width":726,"height":12}},{"id":"21560f33-6ae9-4ddb-b97f-ebad189c3437","block_type":"box","text":"securities and the value and liquidity of outstanding high yield securities, especially in a thinly","page_number":108,"box":{"x":150,"y":816,"width":690,"height":12}},{"id":"5fb2f8ac-07d1-4594-9a36-d4cd74844cb8","block_type":"box","text":"traded market. For example, federal legislation requiring the divestiture by federally insured","page_number":108,"box":{"x":150,"y":831,"width":681,"height":12}},{"id":"4500a25f-3926-4f1f-9aee-eb4a68979055","block_type":"box","text":"savings and loan associations of their investments in high yield bonds and limiting the deductibility","page_number":108,"box":{"x":150,"y":847,"width":733,"height":12}},{"id":"9ebfea04-d9e8-4ded-a046-1f8bb4a2a4d2","block_type":"box","text":"of interest by certain corporate issuers of high yield bonds adversely affected the market in the","page_number":108,"box":{"x":150,"y":862,"width":706,"height":12}},{"id":"8a3b3226-a7f5-412f-abdd-274e8b76e828","block_type":"box","text":"past.","page_number":108,"box":{"x":150,"y":878,"width":41,"height":12}},{"id":"19b87888-1440-4f8d-9f23-f3a17b1e4b7f","block_type":"box","text":"II-14","page_number":108,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3dc03bdf-eeb0-478e-a9d9-f065d5bebe6f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":108,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fd7382e5-278a-4fe6-a5ed-e49be887061a","block_type":"box","text":"• The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of","page_number":109,"box":{"x":117,"y":87,"width":770,"height":12}},{"id":"e5d22cd6-0350-496c-9820-b57eb9cb488e","block_type":"box","text":"a non-investment grade security’s principal and interest payments, but does not address market","page_number":109,"box":{"x":150,"y":103,"width":716,"height":12}},{"id":"cc6d7faa-25e1-498d-bcbe-cbc5912787cc","block_type":"box","text":"value risk. Because such ratings of the ratings agencies may not always reflect current conditions","page_number":109,"box":{"x":150,"y":118,"width":728,"height":12}},{"id":"6432dba2-5661-42ce-857d-91017aadc036","block_type":"box","text":"and events, in addition to using recognized rating agencies and other sources, the Manager or","page_number":109,"box":{"x":150,"y":134,"width":705,"height":12}},{"id":"da24cf38-9ef1-456d-b533-0bf033140b9d","block_type":"box","text":"sub-adviser performs its own analysis of the issuers whose non-investment grade securities a","page_number":109,"box":{"x":150,"y":149,"width":700,"height":12}},{"id":"c268a450-1c40-400f-94f2-754ab12fb058","block_type":"box","text":"Fund holds. Because of this, the Fund’s performance may depend more on the Manager’s or","page_number":109,"box":{"x":151,"y":165,"width":693,"height":12}},{"id":"8e2891b7-e2fa-4863-a3e0-4030408ae9ec","block_type":"box","text":"sub-adviser’s own credit analysis than in the case of mutual funds investing in higher-rated","page_number":109,"box":{"x":150,"y":180,"width":678,"height":12}},{"id":"7be3b117-21c0-4abe-a852-bfdd41f64730","block_type":"box","text":"securities.","page_number":109,"box":{"x":150,"y":196,"width":80,"height":9}},{"id":"89a06bf5-4971-46dc-ab50-7dc4bdbb0768","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as","page_number":109,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"362cfad7-4009-4857-9196-a7e1cdff6a40","block_type":"box","text":"those relating to the creditworthiness of issuers, the ratings and performance of the securities, the","page_number":109,"box":{"x":116,"y":242,"width":731,"height":12}},{"id":"f3a4a982-df82-4ddc-9830-21c52f882e01","block_type":"box","text":"protections afforded the securities and the diversity of the Fund. The Manager or sub-adviser","page_number":109,"box":{"x":117,"y":258,"width":694,"height":12}},{"id":"ae931622-09eb-42bc-8330-9ac68606bfd1","block_type":"box","text":"continuously monitors the issuers of non-investment grade securities held by the Fund for their ability","page_number":109,"box":{"x":116,"y":273,"width":755,"height":12}},{"id":"6cebb39e-05d6-4315-a750-f8a9c4d35ad8","block_type":"box","text":"to make required principal and interest payments, as well as in an effort to control the liquidity of the","page_number":109,"box":{"x":116,"y":289,"width":746,"height":12}},{"id":"70669132-faa6-4f0c-99cb-0bcab55d56bc","block_type":"box","text":"Fund so that it can meet redemption requests. If a security’s rating is reduced below the minimum","page_number":109,"box":{"x":117,"y":304,"width":729,"height":12}},{"id":"bde662eb-d65a-430e-bda2-4c894b185863","block_type":"box","text":"credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will consider whether the","page_number":109,"box":{"x":116,"y":320,"width":745,"height":12}},{"id":"fa7a67ec-9d11-493a-8fdd-12b47ae744ed","block_type":"box","text":"Fund should continue to hold the security.","page_number":109,"box":{"x":117,"y":335,"width":315,"height":12}},{"id":"98467452-8cfa-49a5-aeaa-0f1a7f89e67c","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net","page_number":109,"box":{"x":117,"y":366,"width":718,"height":12}},{"id":"6542d1a5-624f-4f5d-9355-4eb9a7f5e293","block_type":"box","text":"redemptions, the Fund could be forced to sell its holdings without regard to the investment merits,","page_number":109,"box":{"x":117,"y":382,"width":729,"height":12}},{"id":"41b3ce0d-0c7a-4993-8e5d-f995e5ad3c97","block_type":"box","text":"thereby decreasing the assets upon which the Fund’s rate of return is based.","page_number":109,"box":{"x":116,"y":397,"width":575,"height":12}},{"id":"221479a0-7a3d-4762-afb6-6b7125cf16d5","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons,","page_number":109,"box":{"x":116,"y":428,"width":733,"height":12}},{"id":"9e0065d1-19e4-4b13-b00f-784cb152df2a","block_type":"box","text":"such as higher investment research costs and higher commission costs.","page_number":109,"box":{"x":116,"y":444,"width":540,"height":12}},{"id":"9d968983-aa90-49a5-bfc4-0534632981b7","block_type":"box","text":"Mezzanine Investments.","page_number":109,"box":{"x":116,"y":475,"width":179,"height":9}},{"id":"643e36a4-1b79-4d07-a389-bd13c9794870","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a","page_number":109,"box":{"x":297,"y":475,"width":579,"height":12}},{"id":"0f06cfd6-b52c-48ff-9102-6bbd0f288b5f","block_type":"box","text":"specific credit quality, may invest in certain high yield securities known as mezzanine investments,","page_number":109,"box":{"x":116,"y":490,"width":735,"height":12}},{"id":"ab9d01e1-5160-4427-8bb9-1849fd3b4373","block_type":"box","text":"which are subordinated debt securities which are generally issued in private placements in connection","page_number":109,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"b829a8bd-f86a-4425-9db3-ae2f6b2d8f87","block_type":"box","text":"with an equity security (","page_number":109,"box":{"x":116,"y":521,"width":175,"height":12}},{"id":"4cb0120b-4c80-44ba-a633-ee0bd3a7a9e1","block_type":"box","text":"e.g.","page_number":109,"box":{"x":292,"y":524,"width":26,"height":9}},{"id":"9b5f5211-371b-4271-9330-0ca6eb68cab3","block_type":"box","text":", with attached warrants). Such mezzanine investments may be issued with","page_number":109,"box":{"x":321,"y":521,"width":563,"height":12}},{"id":"26aacbc0-2f32-4cd0-ad55-ef06f8d7856e","block_type":"box","text":"or without registration rights. Similar to other high yield securities, maturities of mezzanine investments","page_number":109,"box":{"x":116,"y":537,"width":767,"height":12}},{"id":"23186ebe-dc06-4dbf-badd-529cbaefd598","block_type":"box","text":"are typically seven to ten years, but the expected average life is significantly shorter at three to five","page_number":109,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"34538bc7-770c-4955-807d-2dd6f13555e6","block_type":"box","text":"years. Mezzanine investments are usually unsecured and subordinate to other obligations of the","page_number":109,"box":{"x":116,"y":568,"width":719,"height":12}},{"id":"30efc6a4-776f-4b29-af0b-1365c0916a68","block_type":"box","text":"issuer.","page_number":109,"box":{"x":117,"y":583,"width":53,"height":10}},{"id":"338deb0f-9895-447c-b24a-cad57fcf044a","block_type":"box","text":"Pay-in-kind Bonds.","page_number":109,"box":{"x":116,"y":614,"width":139,"height":12}},{"id":"a220264c-48ff-41e0-b9ba-57b17ee176c5","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which","page_number":109,"box":{"x":257,"y":614,"width":631,"height":12}},{"id":"74147286-78bc-4080-8c32-18d6816595c6","block_type":"box","text":"pay interest through the issuance of additional debt or equity securities. Similar to zero coupon","page_number":109,"box":{"x":117,"y":630,"width":706,"height":12}},{"id":"48b8ffe3-7960-4b2f-b0e1-22e0e8a8479b","block_type":"box","text":"obligations, pay-in-kind bonds also carry additional risk as holders of these types of securities realize","page_number":109,"box":{"x":116,"y":645,"width":753,"height":12}},{"id":"c5e3cebf-b975-4477-90e4-fb580877fa00","block_type":"box","text":"no cash until the cash payment date unless a portion of such securities is sold and, if the issuer","page_number":109,"box":{"x":117,"y":661,"width":707,"height":12}},{"id":"e0ae56fa-28db-4f5c-8da0-cd160dc6dee1","block_type":"box","text":"defaults, a Fund may obtain no return at all on its investment. The market price of pay-in-kind bonds is","page_number":109,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"23ea20d9-b998-413a-82fd-cb568b641df8","block_type":"box","text":"affected by interest rate changes to a greater extent, and therefore tends to be more volatile, than that","page_number":109,"box":{"x":116,"y":692,"width":758,"height":12}},{"id":"6d432e94-3f47-42cb-865c-6ec3e9c768da","block_type":"box","text":"of securities which pay interest in cash. Additionally, current U.S. federal tax law requires the holder of","page_number":109,"box":{"x":116,"y":707,"width":759,"height":12}},{"id":"04384771-0ad0-4876-b26f-3eb6a73c34f4","block_type":"box","text":"pay-in-kind bonds to accrue income with respect to these securities prior to the receipt of cash","page_number":109,"box":{"x":117,"y":723,"width":698,"height":12}},{"id":"c136b758-54b5-4f3e-89d0-e100bfcf6477","block_type":"box","text":"payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":109,"box":{"x":117,"y":738,"width":747,"height":12}},{"id":"abad1490-8a11-48db-893c-53a30e7787fc","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect","page_number":109,"box":{"x":116,"y":754,"width":765,"height":12}},{"id":"06668623-0c83-48de-9a43-a02f0ef6c807","block_type":"box","text":"to these securities and may have to dispose of portfolio securities under disadvantageous","page_number":109,"box":{"x":116,"y":769,"width":665,"height":12}},{"id":"1d3c0d16-7303-4cc8-9f41-858d7d08ee35","block_type":"box","text":"circumstances in order to generate cash to satisfy these distribution requirements.","page_number":109,"box":{"x":116,"y":785,"width":608,"height":12}},{"id":"119890da-0f83-4701-8eb1-21666942f16b","block_type":"box","text":"Supranational Entities.","page_number":109,"box":{"x":117,"y":816,"width":165,"height":12}},{"id":"50ab8e10-86bf-4a36-a394-00e731fce559","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of","page_number":109,"box":{"x":289,"y":816,"width":555,"height":12}},{"id":"5f1d56aa-ffb0-4a5a-9e70-b2d7cd075b5f","block_type":"box","text":"such entities include the International Bank for Reconstruction and Development (the World Bank), the","page_number":109,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"7baffb6e-1c86-471b-a255-125f5669927c","block_type":"box","text":"European Steel and Coal Community, the Asian Development Bank and the Inter-American","page_number":109,"box":{"x":117,"y":847,"width":683,"height":12}},{"id":"df854b31-0d51-4b26-8852-592eef208f9a","block_type":"box","text":"Development Bank. The government members, or “stockholders,” usually make initial capital","page_number":109,"box":{"x":117,"y":862,"width":691,"height":12}},{"id":"60071778-2d3a-43d0-ae78-adf5f3ff9611","block_type":"box","text":"contributions to the supranational entity and in many cases are committed to make additional capital","page_number":109,"box":{"x":116,"y":878,"width":748,"height":12}},{"id":"596955ef-3416-4233-a51c-692d31c8fd85","block_type":"box","text":"II-15","page_number":109,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d28b6b83-23b7-46e6-963b-e02db3c16ea2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":109,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d84ac287-500c-4948-b827-1d4aa1c4472c","block_type":"box","text":"contributions if the supranational entity is unable to repay its borrowings. There is no guarantee that","page_number":110,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"cb3a41ae-9632-40fd-89ac-0457ec6e06f8","block_type":"box","text":"one or more stockholders of a supranational entity will continue to make any necessary additional","page_number":110,"box":{"x":116,"y":102,"width":729,"height":13}},{"id":"51cb3fb2-988c-47cc-a647-b51c28b707bb","block_type":"box","text":"capital contributions. If such contributions are not made, the entity may be unable to pay interest or","page_number":110,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"a5b40eb0-e62e-420c-b234-d44afb6af70d","block_type":"box","text":"repay principal on its debt securities, and a Fund may lose money on such investments.","page_number":110,"box":{"x":117,"y":134,"width":655,"height":12}},{"id":"cf0713d4-1f60-40fa-9135-a6321a26c04b","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":110,"box":{"x":116,"y":165,"width":367,"height":12}},{"id":"73a79581-3883-4a8b-addd-251f5b90602a","block_type":"box","text":"Certain Funds may invest in the securities of foreign","page_number":110,"box":{"x":484,"y":165,"width":397,"height":12}},{"id":"f04ba00e-41ba-4f86-98aa-239c8e3af975","block_type":"box","text":"issuers in the form of Depositary Receipts or other securities convertible into securities of foreign","page_number":110,"box":{"x":117,"y":180,"width":722,"height":12}},{"id":"7ac714c2-e52e-4620-a2bb-8390d15b378b","block_type":"box","text":"issuers. Depositary Receipts may not necessarily be denominated in the same currency as the","page_number":110,"box":{"x":117,"y":196,"width":707,"height":12}},{"id":"919951d1-de3e-42fa-8fa9-ad5436d8307a","block_type":"box","text":"underlying securities into which they may be converted. The Fund may invest in both sponsored and","page_number":110,"box":{"x":117,"y":211,"width":749,"height":12}},{"id":"ce81fdc9-1dcd-414c-83b3-f1804cda44e6","block_type":"box","text":"unsponsored American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), Global","page_number":110,"box":{"x":117,"y":227,"width":769,"height":12}},{"id":"09644e42-cb98-4c2d-b9d9-3994def1f9ad","block_type":"box","text":"Depositary Receipts (“GDRs”) and other similar global instruments. ADRs typically are issued by an","page_number":110,"box":{"x":117,"y":242,"width":743,"height":12}},{"id":"d5fbbb88-8664-4237-b154-d498a1803089","block_type":"box","text":"American bank or trust company and evidence ownership of underlying securities issued by a foreign","page_number":110,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"1760a7d8-cdab-47a9-aea8-71e911d6f0bc","block_type":"box","text":"corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are receipts","page_number":110,"box":{"x":116,"y":273,"width":757,"height":12}},{"id":"56abc71c-073c-483a-b20d-70b17f42ac3d","block_type":"box","text":"issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either","page_number":110,"box":{"x":117,"y":289,"width":739,"height":12}},{"id":"bbd7fbfa-9af7-4eb3-bfeb-9628da920fbb","block_type":"box","text":"foreign or domestic underlying securities. GDRs are depositary receipts structured like global debt","page_number":110,"box":{"x":116,"y":304,"width":732,"height":12}},{"id":"8c76e16f-a2ca-4cb6-a050-d207fa6a4c8a","block_type":"box","text":"issues to facilitate trading on an international basis. In addition to investment risks associated with the","page_number":110,"box":{"x":117,"y":320,"width":758,"height":12}},{"id":"6452edaf-ecfe-4717-a920-a078d3c61121","block_type":"box","text":"underlying issuer, Depositary Receipts expose a Fund to additional risks associated with the","page_number":110,"box":{"x":117,"y":335,"width":689,"height":12}},{"id":"c89a7b87-b505-4b6f-9f9c-7a0fb3007e4b","block_type":"box","text":"non-uniform terms that apply to Depositary Receipt programs, credit exposure to the depository bank","page_number":110,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"4e31f43e-af2c-4eb9-aa9f-43576266e89c","block_type":"box","text":"and to the sponsors and other parties with whom the depository bank establishes the programs,","page_number":110,"box":{"x":116,"y":366,"width":716,"height":12}},{"id":"b48e3741-6728-415a-9fd5-8c60f09cdde3","block_type":"box","text":"currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR, EDR and","page_number":110,"box":{"x":116,"y":382,"width":748,"height":12}},{"id":"1dfac703-801d-428a-a46e-229168c1561b","block_type":"box","text":"GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":110,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"9d0be3ed-18d7-4968-86b8-9b4958c32f22","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored","page_number":110,"box":{"x":116,"y":413,"width":701,"height":12}},{"id":"d8f8f0a7-37f0-426c-8243-ee13de93f39d","block_type":"box","text":"programs and do not provide holders with many of the shareholder benefits that come from investing in","page_number":110,"box":{"x":117,"y":428,"width":769,"height":12}},{"id":"07348b1b-d5e7-4c1b-aa63-2b948ab3acf3","block_type":"box","text":"a sponsored Depositary Receipt. Available information concerning the issuer may not be as current as","page_number":110,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"433032fb-174c-44a0-a229-36074bfbbff5","block_type":"box","text":"for sponsored ADRs, EDRs and GDRs, and the prices of unsponsored ADRs, EDRs and GDRs may","page_number":110,"box":{"x":116,"y":459,"width":750,"height":12}},{"id":"fefb365c-de16-462c-b102-f9a7bf09d233","block_type":"box","text":"be more volatile than if such instruments were sponsored by the issuer. Depositary Receipts are","page_number":110,"box":{"x":117,"y":475,"width":718,"height":12}},{"id":"4a7b5533-a534-4ca5-b9a7-34086edba5e1","block_type":"box","text":"generally subject to the same risks as the foreign securities that they evidence or into which they may","page_number":110,"box":{"x":116,"y":490,"width":759,"height":12}},{"id":"6757c9f7-c2b6-464a-bc57-147c5610411f","block_type":"box","text":"be converted. Investments in ADRs, EDRs and GDRs present additional investment considerations as","page_number":110,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"817d9884-d07b-49db-a6e1-00a276e1db55","block_type":"box","text":"described under “Foreign Investment Risks.”","page_number":110,"box":{"x":116,"y":521,"width":336,"height":12}},{"id":"a7d1fc27-a7de-4925-942b-09a40e6cc3e1","block_type":"box","text":"Derivatives.","page_number":110,"box":{"x":116,"y":560,"width":99,"height":9}},{"id":"f7b6a2e1-ecde-43ef-b531-8f60518c6085","block_type":"box","text":"General.","page_number":110,"box":{"x":117,"y":583,"width":68,"height":10}},{"id":"857c43f4-37a9-4c4c-a1fb-d8112eab16b3","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments","page_number":110,"box":{"x":186,"y":583,"width":675,"height":12}},{"id":"0e7e017e-95cb-4338-a633-1f1a18517447","block_type":"box","text":"that derive their value from one or more securities, commodities (such as gold or oil), currencies,","page_number":110,"box":{"x":116,"y":599,"width":722,"height":12}},{"id":"4b5c11e5-868d-4a20-b3c5-c40b69a92721","block_type":"box","text":"interest rates, credit events or indices (a measure of value or rates, such as the S&P 500 Index or the","page_number":110,"box":{"x":117,"y":614,"width":758,"height":12}},{"id":"5fa416e0-08d0-45d2-8f32-3f139fabd13a","block_type":"box","text":"prime lending rate) or other reference asset. Derivatives may allow a Fund to increase or decrease the","page_number":110,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"92411329-7d74-45e1-8685-3fd605b21a68","block_type":"box","text":"level of risk to which the Fund is exposed more quickly and efficiently than with other transactions.","page_number":110,"box":{"x":117,"y":645,"width":732,"height":12}},{"id":"262ea9ab-76ee-46a2-aa66-e255e65b8229","block_type":"box","text":"Certain Funds may use derivatives to maintain a portion of their long and short positions. Unless","page_number":110,"box":{"x":117,"y":661,"width":714,"height":12}},{"id":"f37a22c9-cb8a-4817-a5fd-9833ec690e3d","block_type":"box","text":"otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset class it is","page_number":110,"box":{"x":116,"y":676,"width":724,"height":12}},{"id":"50f9498d-99d3-4c43-b402-2b397db032c6","block_type":"box","text":"prohibited by its investment restrictions from purchasing directly. As described below, derivatives can","page_number":110,"box":{"x":117,"y":692,"width":748,"height":12}},{"id":"2c303904-9dc7-44b8-8f93-3c945c31b745","block_type":"box","text":"be used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":110,"box":{"x":117,"y":707,"width":747,"height":12}},{"id":"be3c0b28-f97d-449a-8904-85e15c746747","block_type":"box","text":"i.e.","page_number":110,"box":{"x":116,"y":723,"width":20,"height":9}},{"id":"52884209-9538-4e6a-9eae-51bf3556ec8e","block_type":"box","text":", the payment obligations of derivatives contracts are netted against one another with the Fund","page_number":110,"box":{"x":140,"y":723,"width":701,"height":12}},{"id":"25d49840-5f3c-453b-af41-ab8043e083b0","block_type":"box","text":"receiving or paying, as the case may be, only the net amount of the two payment streams.","page_number":110,"box":{"x":117,"y":738,"width":667,"height":12}},{"id":"20b59af8-5475-4a1e-8175-30a8fe214594","block_type":"box","text":"Hedging.","page_number":110,"box":{"x":116,"y":769,"width":65,"height":12}},{"id":"9d4da8c7-af35-408e-9730-539ea0e7abb6","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset","page_number":110,"box":{"x":189,"y":769,"width":680,"height":12}},{"id":"fe0f6a46-21bf-42ce-9b64-c022a81be239","block_type":"box","text":"the risks associated with other Fund holdings. Losses on other investments may be substantially","page_number":110,"box":{"x":116,"y":785,"width":716,"height":12}},{"id":"1bfff66c-70a0-47e3-abcd-8a2f4d61219a","block_type":"box","text":"reduced by gains on a derivative that reacts in an opposite manner to market movements. Although","page_number":110,"box":{"x":117,"y":800,"width":737,"height":12}},{"id":"4fdce260-c945-4ead-80d1-f7a8993542d1","block_type":"box","text":"hedging may reduce losses, it may also reduce or eliminate gains. In addition, hedging may cause","page_number":110,"box":{"x":117,"y":816,"width":728,"height":12}},{"id":"2c540fbc-e3e7-49cc-8047-d26765145503","block_type":"box","text":"losses if the market moves in an unanticipated manner, or if the cost of the derivative outweighs the","page_number":110,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"9f5e9e04-248f-40c2-85f5-f0157d069f16","block_type":"box","text":"benefit of the hedge. The effectiveness of hedging may be reduced by correlation risk,","page_number":110,"box":{"x":117,"y":847,"width":643,"height":12}},{"id":"780a3c39-bc93-45d8-b84e-051ec547a246","block_type":"box","text":"i.e.","page_number":110,"box":{"x":761,"y":847,"width":20,"height":9}},{"id":"f836330f-f793-4342-b1ee-0808d8d0afa0","block_type":"box","text":",","page_number":110,"box":{"x":784,"y":855,"width":2,"height":3}},{"id":"19f4f8f8-257f-4d87-87a9-ca1d1c349403","block_type":"box","text":"the risk that","page_number":110,"box":{"x":793,"y":847,"width":91,"height":9}},{"id":"4c265f45-b74e-40c2-b246-a8970bef0a0f","block_type":"box","text":"changes in the value of the derivative will not match those of the holdings being hedged as expected","page_number":110,"box":{"x":116,"y":862,"width":751,"height":12}},{"id":"6fa2469c-af76-4330-84df-4360759ae823","block_type":"box","text":"by a Fund, which may result in additional losses to the Fund. The inability to close or offset derivatives","page_number":110,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"93941813-d575-4d4c-b31d-390d4337218f","block_type":"box","text":"II-16","page_number":110,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"84d3a8d6-4744-42b5-b64b-22c6d2a52c09","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":110,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3a8286a2-8ea3-4458-be04-aebb62578f2d","block_type":"box","text":"could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging","page_number":111,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"ca3cc832-6006-4efe-9e7f-37ec02f76b72","block_type":"box","text":"will be effective. No Fund is required to use derivatives to hedge.","page_number":111,"box":{"x":116,"y":102,"width":486,"height":13}},{"id":"f2b26bdb-aee7-479f-9a96-0b4be0a82217","block_type":"box","text":"Speculation.","page_number":111,"box":{"x":117,"y":131,"width":90,"height":12}},{"id":"0ff1fd8f-b434-492b-a53d-367028c5d037","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance","page_number":111,"box":{"x":208,"y":131,"width":638,"height":12}},{"id":"d3390814-7dd0-43c4-82ce-1bea2a38d9f2","block_type":"box","text":"returns. The use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather","page_number":111,"box":{"x":117,"y":146,"width":753,"height":12}},{"id":"f750cc1e-ad76-45a3-975c-fcf0b51082aa","block_type":"box","text":"than offset the risk of other positions. To the extent a Fund invests in a derivative for speculative","page_number":111,"box":{"x":116,"y":162,"width":719,"height":12}},{"id":"109d8313-31df-44ba-b03c-029d239602e1","block_type":"box","text":"purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be","page_number":111,"box":{"x":117,"y":177,"width":769,"height":12}},{"id":"bfcad7ca-74fd-4bf7-91db-ef7143c69468","block_type":"box","text":"greater than the derivative’s cost, and the potential for loss in certain cases may be unlimited.","page_number":111,"box":{"x":116,"y":193,"width":699,"height":12}},{"id":"d186b8fc-9f1a-4bb5-b1fd-084a21163a0f","block_type":"box","text":"Regulation of Derivatives.","page_number":111,"box":{"x":116,"y":227,"width":196,"height":12}},{"id":"efa3f572-647e-4869-a84a-e3396091a61b","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":111,"box":{"x":116,"y":249,"width":352,"height":12}},{"id":"d6bdb3c6-2792-46d9-bc1f-c74d381d8064","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits","page_number":111,"box":{"x":469,"y":249,"width":416,"height":12}},{"id":"c4eb2e56-2cd9-481d-87a3-901d02522617","block_type":"box","text":"a Fund to enter into Derivatives Transactions (as defined below) and certain other transactions","page_number":111,"box":{"x":116,"y":265,"width":708,"height":12}},{"id":"7744f9aa-8119-4f0e-8903-09c5d131329c","block_type":"box","text":"notwithstanding the restrictions on the issuance of “senior securities” under Section 18 of the","page_number":111,"box":{"x":117,"y":280,"width":692,"height":12}},{"id":"c80e3fb1-ec9c-4c2b-8d0d-37a383bfca06","block_type":"box","text":"Investment Company Act. Section 18 of the Investment Company Act, among other things, prohibits","page_number":111,"box":{"x":117,"y":296,"width":747,"height":12}},{"id":"b1e8556b-a9ab-433b-9f8d-ef5e19541cbe","block_type":"box","text":"open-end funds, including the Funds, from issuing or selling any “senior security,” other than borrowing","page_number":111,"box":{"x":116,"y":311,"width":769,"height":12}},{"id":"1d02dc27-9779-4235-99d8-e8cc518de907","block_type":"box","text":"from a bank (subject to a requirement to maintain 300% “asset coverage”).","page_number":111,"box":{"x":116,"y":327,"width":560,"height":12}},{"id":"a0da7a5c-4752-414e-905d-4509f600a9bb","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap","page_number":111,"box":{"x":117,"y":355,"width":761,"height":12}},{"id":"c7cda5da-d098-46bf-bcbc-44c282f37ef8","block_type":"box","text":"(including a contract for differences), futures contract, forward contract, option (excluding purchased","page_number":111,"box":{"x":117,"y":370,"width":747,"height":13}},{"id":"7eb650f1-5ea3-41cb-b87b-70506e126ac6","block_type":"box","text":"options), any combination of the foregoing, or any similar instrument, under which a Fund is or may be","page_number":111,"box":{"x":116,"y":386,"width":764,"height":12}},{"id":"cbf0be3b-a5a7-40cd-bec6-b5f9114c43f2","block_type":"box","text":"required to make any payment or delivery of cash or other assets during the life of the instrument or at","page_number":111,"box":{"x":117,"y":401,"width":763,"height":13}},{"id":"272824a4-2749-4f16-82b2-e73685fbb7e2","block_type":"box","text":"maturity or early termination, whether as margin or settlement payment or otherwise; (2) any short sale","page_number":111,"box":{"x":117,"y":417,"width":767,"height":12}},{"id":"d851ad39-375e-46dc-8839-b8e76ab6e41e","block_type":"box","text":"borrowing; (3) reverse repurchase agreements and similar financing transactions (e.g., recourse and","page_number":111,"box":{"x":117,"y":432,"width":750,"height":13}},{"id":"c24dd7e3-515d-4602-b901-842f53e09b91","block_type":"box","text":"non-recourse tender option bonds, and borrowed bonds), if a Fund elects to treat all of these","page_number":111,"box":{"x":117,"y":448,"width":691,"height":12}},{"id":"7b5b56dd-3828-42e1-9404-8a96b44e54a2","block_type":"box","text":"transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":111,"box":{"x":116,"y":463,"width":738,"height":13}},{"id":"45e1cffb-f623-4a06-ae01-58236e34aefd","block_type":"box","text":"securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and","page_number":111,"box":{"x":116,"y":479,"width":763,"height":12}},{"id":"5a99b39b-66f1-41fc-bc63-ce6ede402e00","block_type":"box","text":"dollar rolls) and non-standard settlement cycle securities, unless such transactions meet the Delayed","page_number":111,"box":{"x":116,"y":494,"width":755,"height":13}},{"id":"e241eb0a-9a3f-4960-b9be-7c37e51bcddb","block_type":"box","text":"Settlement Securities Provision (as defined below under “—When-Issued Securities, Delayed Delivery","page_number":111,"box":{"x":116,"y":510,"width":763,"height":12}},{"id":"3a33c9bb-3486-4fb8-8346-cc6ddc9139a8","block_type":"box","text":"Securities and Forward Commitments”).","page_number":111,"box":{"x":116,"y":525,"width":302,"height":13}},{"id":"6ad4948c-10fd-493f-91cf-7c7601f98138","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must","page_number":111,"box":{"x":117,"y":554,"width":759,"height":12}},{"id":"553f8ead-a80a-4427-881f-7e0a33e4772a","block_type":"box","text":"comply with Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things,","page_number":111,"box":{"x":116,"y":569,"width":744,"height":12}},{"id":"5fa385e3-273a-479e-ada1-3f2688355ab8","block_type":"box","text":"requires a Fund to adopt and implement a comprehensive written derivatives risk management","page_number":111,"box":{"x":117,"y":585,"width":708,"height":12}},{"id":"005f49b8-c4cd-4b21-a8fa-82180abb908d","block_type":"box","text":"program (“DRMP”) and comply with a relative or absolute limit on Fund leverage risk calculated based","page_number":111,"box":{"x":117,"y":600,"width":761,"height":12}},{"id":"e03807b0-0ef6-44af-b160-42a33a87581c","block_type":"box","text":"on value-at-risk (“VaR”). The DRMP is administered by a “derivatives risk manager,” who is appointed","page_number":111,"box":{"x":116,"y":616,"width":760,"height":12}},{"id":"9e4f4365-df5e-404c-a747-12fcfc5cdad1","block_type":"box","text":"by the Fund’s Board, including a majority of the independent Directors, and periodically reviews the","page_number":111,"box":{"x":117,"y":631,"width":739,"height":12}},{"id":"af5f7016-8a47-4676-9a5e-d8dd5321cbf1","block_type":"box","text":"DRMP and reports to the Fund’s Board.","page_number":111,"box":{"x":117,"y":647,"width":299,"height":12}},{"id":"13a477e6-c61a-444b-9608-9cf7f0f1a8de","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":111,"box":{"x":117,"y":675,"width":758,"height":12}},{"id":"2937b61d-9322-43bb-9c79-368048895c92","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4)","page_number":111,"box":{"x":116,"y":690,"width":754,"height":13}},{"id":"7596f11a-5cbc-44bf-a013-b10e63ff5812","block_type":"box","text":"and the Fund adopts and implements written policies and procedures reasonably designed to manage","page_number":111,"box":{"x":116,"y":706,"width":758,"height":12}},{"id":"45318350-5aac-4a69-89e7-09ed1c57b4b0","block_type":"box","text":"its derivatives risks (the “Limited Derivatives User Exception”).","page_number":111,"box":{"x":117,"y":721,"width":459,"height":13}},{"id":"0320cecc-34e2-4e4e-b207-266ad7b0dda2","block_type":"box","text":"Dodd-Frank Regulations","page_number":111,"box":{"x":116,"y":756,"width":182,"height":12}},{"id":"22e5dc5c-329e-4c9e-ac57-b0245a743127","block_type":"box","text":". The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd","page_number":111,"box":{"x":299,"y":756,"width":564,"height":12}},{"id":"4a01bcf9-1b11-415c-a69b-39cb464dab63","block_type":"box","text":"Frank”), enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter","page_number":111,"box":{"x":117,"y":772,"width":754,"height":12}},{"id":"d028637b-7ad1-4581-9779-27638fc1ff01","block_type":"box","text":"(“OTC”) derivatives markets for the first time. While the Commodity Futures Trading Commission","page_number":111,"box":{"x":117,"y":787,"width":716,"height":12}},{"id":"1fff9a35-f3cc-4a7a-8613-7c7b558c526e","block_type":"box","text":"(“CFTC”) and other U.S. regulators have adopted many of the required Dodd-Frank regulations, certain","page_number":111,"box":{"x":117,"y":803,"width":764,"height":12}},{"id":"7e5689f5-ac06-4948-b303-3d0ffef846de","block_type":"box","text":"regulations have only recently become effective and other regulations remain to be adopted. The full","page_number":111,"box":{"x":117,"y":818,"width":743,"height":12}},{"id":"5985500b-0397-4455-a8ae-09d6ab08b44c","block_type":"box","text":"impact of Dodd-Frank on the Funds remains uncertain.","page_number":111,"box":{"x":117,"y":834,"width":411,"height":12}},{"id":"307a7228-4622-41f0-9ef5-58684e73bd56","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the","page_number":111,"box":{"x":117,"y":862,"width":770,"height":12}},{"id":"4acc41de-ddc3-4011-8697-b7be52dd36d2","block_type":"box","text":"SEC as “security-based swap dealers”. Registered swap dealers and security-based swap dealers are","page_number":111,"box":{"x":116,"y":877,"width":765,"height":12}},{"id":"4607c93c-93b6-42c3-951c-114e02337732","block_type":"box","text":"II-17","page_number":111,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a002d834-2d13-40bc-88cd-eed8d7f1ee01","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":111,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3ab7030e-1dea-483b-9dce-1d74b45d54a6","block_type":"box","text":"subject to various regulatory requirements, including, but not limited to, margin, recordkeeping,","page_number":112,"box":{"x":116,"y":87,"width":708,"height":12}},{"id":"2a7ec60f-ec96-4dbc-88b8-8666d49d8dc1","block_type":"box","text":"reporting, transparency, position limits, limitations on conflicts of interest, business conduct standards,","page_number":112,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"15dcb884-1fad-4f02-af43-363f28bc8d62","block_type":"box","text":"minimum capital requirements and other regulatory requirements, which indirectly impact the Funds","page_number":112,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"fcca5fb9-7c05-4291-8f75-ba2f5a0ff6a9","block_type":"box","text":"that enter into transactions with them.","page_number":112,"box":{"x":116,"y":134,"width":284,"height":9}},{"id":"77ec70e1-2870-4a52-b518-adc59cd572d2","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed","page_number":112,"box":{"x":116,"y":165,"width":761,"height":11}},{"id":"1986ce61-1181-4ff9-b195-873a3faf2a0c","block_type":"box","text":"in regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also","page_number":112,"box":{"x":117,"y":180,"width":719,"height":12}},{"id":"f7b28e8d-e2c1-40f7-b03d-79ba8404a102","block_type":"box","text":"expected to impose similar requirements on certain security-based derivatives in the future. OTC","page_number":112,"box":{"x":116,"y":196,"width":723,"height":12}},{"id":"379f1dfc-4668-49db-b0b4-056be71f44be","block_type":"box","text":"derivatives trades submitted for clearing are subject to minimum initial and variation margin","page_number":112,"box":{"x":116,"y":211,"width":681,"height":12}},{"id":"07717c1d-8b50-4d11-8c6d-63ef2aec30e7","block_type":"box","text":"requirements set by the relevant clearinghouse, as well as margin requirements mandated by the","page_number":112,"box":{"x":117,"y":227,"width":726,"height":12}},{"id":"5d305777-2c8b-4cbd-83d4-6aed5de03272","block_type":"box","text":"CFTC, SEC and/or federal prudential regulators. In addition, futures commission merchants (“FCMs”),","page_number":112,"box":{"x":117,"y":242,"width":760,"height":12}},{"id":"ea33d4d1-5b2a-4c06-a595-ed9784a58869","block_type":"box","text":"who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":112,"box":{"x":116,"y":258,"width":697,"height":12}},{"id":"ce1bd866-4cb1-49ab-91fb-f0fbbc439666","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond","page_number":112,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"dc01d9b1-4cae-47ac-9d43-40634d58cf2c","block_type":"box","text":"any regulatory and clearinghouse minimums subject to any restrictions on such discretion in the","page_number":112,"box":{"x":116,"y":289,"width":715,"height":12}},{"id":"33e8eb89-bfd8-447a-9c29-100dd9b3263a","block_type":"box","text":"documentation between the FCM and the customer. These regulatory requirements may make it more","page_number":112,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"cc9d9180-0e10-4a8e-8a23-15ded4b9224d","block_type":"box","text":"difficult and costly for the Funds to enter into highly tailored or customized transactions, potentially","page_number":112,"box":{"x":116,"y":320,"width":733,"height":12}},{"id":"6b47222b-f523-48fa-82ed-70ad2f180805","block_type":"box","text":"rendering certain investment strategies impossible or not economically feasible. If a Fund decides to","page_number":112,"box":{"x":117,"y":335,"width":747,"height":12}},{"id":"2ffb12a6-3c1b-46e8-8fd9-da743d0204a5","block_type":"box","text":"execute and clear cleared OTC derivatives and/or futures contracts through execution facilities,","page_number":112,"box":{"x":116,"y":351,"width":712,"height":12}},{"id":"dcef752d-63a3-4915-b7fa-71dd9e4c4358","block_type":"box","text":"exchanges or clearinghouses, either indirectly through an executing broker, clearing member FCM or","page_number":112,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"55e9d8ac-0b58-48ee-a160-69f3d58bc94d","block_type":"box","text":"as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":112,"box":{"x":116,"y":382,"width":709,"height":12}},{"id":"2b4afaa0-8c72-4caa-a0ba-c5b6eab07a66","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":112,"box":{"x":116,"y":397,"width":397,"height":12}},{"id":"a6ba6ca0-c16c-41eb-943c-03bb50515c8f","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not","page_number":112,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"90ae7c4c-6e12-4736-b729-e886231670fc","block_type":"box","text":"face a clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/","page_number":112,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"ec8475b0-7543-45b6-b211-ba9a35600a8c","block_type":"box","text":"or SEC and that acts as a clearing member. A Fund may face the indirect risk of the failure of another","page_number":112,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"bce7c1d9-bb0d-482d-8827-a87af559667e","block_type":"box","text":"clearing member customer to meet its obligations to its clearing member. Such scenario could arise","page_number":112,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"20a9f2c1-492b-44cb-9251-594f91172ac8","block_type":"box","text":"due to a default by the clearing member on its obligations to the clearinghouse simultaneously with a","page_number":112,"box":{"x":116,"y":490,"width":752,"height":12}},{"id":"11ee4ba8-4667-4e9d-9b42-2781f89595ef","block_type":"box","text":"customer’s failure to meet its obligations to the clearing member.","page_number":112,"box":{"x":116,"y":506,"width":485,"height":12}},{"id":"e5a78fa1-ccdd-4ac9-a2f4-c7d837ddfa31","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they","page_number":112,"box":{"x":117,"y":537,"width":742,"height":12}},{"id":"234b2ad6-1db5-46b0-8617-5e0bee3ce2d8","block_type":"box","text":"clear their customers’ cleared OTC derivatives and futures contracts, instead of using such initial","page_number":112,"box":{"x":116,"y":552,"width":722,"height":12}},{"id":"4f256ae0-f424-4210-8821-0f79ed472caf","block_type":"box","text":"margin in their businesses, as was widely permitted for OTC derivatives before Dodd-Frank. While an","page_number":112,"box":{"x":117,"y":568,"width":757,"height":12}},{"id":"2162dded-f8b8-4830-8c18-16660b029517","block_type":"box","text":"FCM may require its customer to post initial margin in excess of clearinghouse requirements, and","page_number":112,"box":{"x":117,"y":583,"width":727,"height":12}},{"id":"6195fa33-88a7-46c2-a4f4-5efc640a938e","block_type":"box","text":"certain clearinghouses may share a portion of their earnings on initial margin with their clearing","page_number":112,"box":{"x":116,"y":599,"width":710,"height":12}},{"id":"481ca025-5539-4aaa-b1d7-b9f372c50446","block_type":"box","text":"members, some portion of the initial margin that is passed through to the clearinghouse does not","page_number":112,"box":{"x":117,"y":614,"width":722,"height":12}},{"id":"660da0ef-76b0-46dd-9e7b-59e6ae95cea2","block_type":"box","text":"generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on initial","page_number":112,"box":{"x":116,"y":630,"width":722,"height":12}},{"id":"6fe49960-56cf-48bb-8865-b8b09deb837c","block_type":"box","text":"margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives","page_number":112,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"3f6a29d5-83ed-4904-9668-d3630703e547","block_type":"box","text":"may cause FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives","page_number":112,"box":{"x":117,"y":661,"width":747,"height":12}},{"id":"84131cfd-cc11-46bc-a07e-accfd9ce1bae","block_type":"box","text":"than swap dealers will provide for non-cleared OTC derivatives. Furthermore, customers, including the","page_number":112,"box":{"x":116,"y":676,"width":760,"height":12}},{"id":"8ce90f0b-a3f9-4899-bc20-12034780377f","block_type":"box","text":"Funds, are subject to additional fees payable to FCMs with respect to cleared OTC derivatives, which","page_number":112,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"831a35a8-a91c-4c5d-a18f-8bb4eae2ca60","block_type":"box","text":"may raise the cost to Funds of clearing as compared to trading non-cleared OTC derivatives bilaterally.","page_number":112,"box":{"x":117,"y":707,"width":763,"height":12}},{"id":"7ac5f192-ff09-408e-bf5d-42bcbcbf1af7","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are","page_number":112,"box":{"x":116,"y":738,"width":710,"height":12}},{"id":"4ad9db98-70c9-4d3b-a4d7-8797a71377a4","block_type":"box","text":"required to exchange variation margin with a Fund and may be required by applicable regulations to","page_number":112,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"b7ac9ade-6414-455c-b0f5-5777ebaf2fd2","block_type":"box","text":"collect (and in some cases exchange) initial margin with a Fund. Both initial and variation margin may","page_number":112,"box":{"x":116,"y":769,"width":752,"height":12}},{"id":"1dd71e11-42c0-463c-ad0a-7c8acc18e401","block_type":"box","text":"be comprised of cash and/or securities, subject to applicable regulatory haircuts and other restrictions.","page_number":112,"box":{"x":117,"y":785,"width":757,"height":12}},{"id":"815e5aaa-5726-478f-93ea-11cb618b3b0e","block_type":"box","text":"Shares of investment companies (other than certain money market funds) may not be posted as","page_number":112,"box":{"x":116,"y":800,"width":713,"height":12}},{"id":"5db6e513-814b-4146-aa87-dda3c361f34c","block_type":"box","text":"collateral under applicable regulations.","page_number":112,"box":{"x":116,"y":816,"width":285,"height":12}},{"id":"3a3430ff-93b9-4200-a6a4-5df3feebf37d","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to","page_number":112,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"df323000-8b3b-438c-b95d-b2e7a0ddd1fe","block_type":"box","text":"evaluate and monitor) speculative position limits (“position limits”) on the maximum speculative position","page_number":112,"box":{"x":116,"y":862,"width":771,"height":12}},{"id":"61a0e47a-7237-4794-b69f-d648b818014e","block_type":"box","text":"which any person, or group of persons acting in concert, may hold or control in particular contracts. In","page_number":112,"box":{"x":116,"y":878,"width":759,"height":12}},{"id":"f7fcdf8e-0ce5-4854-901c-0cc8ee503376","block_type":"box","text":"II-18","page_number":112,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"77860474-ece2-455b-be85-b4d64f2ad008","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":112,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"76f6556a-22a2-4b84-a6ec-58a5909e5c8d","block_type":"box","text":"addition, U.S. federal position limits apply to swaps that are economically equivalent to futures","page_number":113,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"c6922724-ab20-4bb1-95fb-a6bc2c64be5f","block_type":"box","text":"contracts on certain agricultural, metals and energy commodities. All positions owned or controlled by","page_number":113,"box":{"x":116,"y":103,"width":758,"height":12}},{"id":"335f7694-c6d0-4129-a5b2-7119b7b64a7d","block_type":"box","text":"the same person or entity, even if in different accounts, must be aggregated for purposes of complying","page_number":113,"box":{"x":116,"y":118,"width":766,"height":12}},{"id":"5e1d8840-e71d-4890-a333-9d7dc0f26bc1","block_type":"box","text":"with the speculative limits. Thus, even if a Fund does not intend to exceed applicable position limits, it","page_number":113,"box":{"x":116,"y":134,"width":758,"height":11}},{"id":"ffd3fe8d-872b-4bed-9b44-0f8cfb834c4c","block_type":"box","text":"is possible that different clients managed by the Manager and its affiliates may be aggregated for this","page_number":113,"box":{"x":117,"y":149,"width":755,"height":12}},{"id":"35e0b87b-5953-46d6-b200-3b131d43a07d","block_type":"box","text":"purpose. Therefore, the trading decisions of the Manager may have to be modified and positions held","page_number":113,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"ccc56b31-4981-46f2-97ae-020abeddbd4a","block_type":"box","text":"by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions","page_number":113,"box":{"x":117,"y":180,"width":757,"height":12}},{"id":"947be918-09f8-44a3-a22d-f4d48e755ad5","block_type":"box","text":"or the elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A","page_number":113,"box":{"x":116,"y":196,"width":723,"height":12}},{"id":"9d85dff0-c0da-4b60-ad3a-5a6ad0893aea","block_type":"box","text":"violation of position limits could also lead to regulatory action materially adverse to a Fund’s investment","page_number":113,"box":{"x":116,"y":211,"width":770,"height":12}},{"id":"d871fb5e-d96c-414c-b683-d408381613e3","block_type":"box","text":"strategy. A Fund may also be affected by other regimes, including those of the European Union and","page_number":113,"box":{"x":116,"y":227,"width":746,"height":12}},{"id":"fd7bc665-acde-430a-9d97-773ff4d278b8","block_type":"box","text":"United Kingdom, and trading venues that impose position limits on commodity derivative contracts.","page_number":113,"box":{"x":117,"y":242,"width":737,"height":12}},{"id":"fabb3f9b-06b7-4850-8277-1754fb5d5dad","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":113,"box":{"x":115,"y":273,"width":269,"height":12}},{"id":"8fd568ad-ac85-424c-8c20-fc257758e077","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed,","page_number":113,"box":{"x":386,"y":273,"width":489,"height":12}},{"id":"f581c4fa-9f1d-4c09-93e6-fb3dbf5e2e16","block_type":"box","text":"or may propose in the future, legislation similar to Dodd-Frank or other legislation that could increase","page_number":113,"box":{"x":116,"y":289,"width":753,"height":12}},{"id":"ed4694d3-2a1c-4c93-a6ab-1e8b697782e1","block_type":"box","text":"the costs of participating in, or otherwise adversely impact the liquidity of, participating in the","page_number":113,"box":{"x":116,"y":304,"width":689,"height":12}},{"id":"e44d7cb1-4998-43be-90ad-06ece1688339","block_type":"box","text":"commodities markets. For example, the European Market Infrastructure Regulation (Regulation (EU)","page_number":113,"box":{"x":116,"y":320,"width":752,"height":12}},{"id":"6d160896-da6b-454c-b86b-33d13b7aef1d","block_type":"box","text":"No 648/2012) (“EMIR”) introduced certain requirements in respect of OTC derivatives including:(i) the","page_number":113,"box":{"x":117,"y":335,"width":757,"height":12}},{"id":"5e7beb37-38da-4342-ba22-76fe871e17da","block_type":"box","text":"mandatory clearing of OTC derivative contracts declared subject to the clearing obligation; (ii) risk","page_number":113,"box":{"x":117,"y":351,"width":728,"height":12}},{"id":"06410987-15f6-47b9-a214-a6af5a7c85e5","block_type":"box","text":"mitigation techniques in respect of uncleared OTC derivative contracts, including the mandatory","page_number":113,"box":{"x":117,"y":366,"width":714,"height":12}},{"id":"df8fbef6-74b8-4e9e-ae3b-f4df9fd0e9d0","block_type":"box","text":"margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping requirements in","page_number":113,"box":{"x":117,"y":382,"width":765,"height":12}},{"id":"9bbee04d-28e2-4cd3-9c40-8e7ca55dac89","block_type":"box","text":"respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":113,"box":{"x":117,"y":397,"width":703,"height":12}},{"id":"6fd9bc78-82e9-41bb-8284-0f3cdc93f9b3","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments","page_number":113,"box":{"x":117,"y":413,"width":688,"height":12}},{"id":"8e0bceff-9cd3-4442-a0d8-2eca32e4a262","block_type":"box","text":"Regulation (Regulation (EU) No 600/2014) (together “MiFID II”), which have applied since January 3,","page_number":113,"box":{"x":117,"y":428,"width":753,"height":12}},{"id":"11eb8425-7084-46b6-bd2f-d35b8b252b51","block_type":"box","text":"2018, govern the provision of investment services and activities in relation to, as well as the organized","page_number":113,"box":{"x":116,"y":444,"width":762,"height":12}},{"id":"c17418ee-df61-4a7f-a663-0a2c00a20caf","block_type":"box","text":"trading of, financial instruments such as shares, bonds, units in collective investment schemes and","page_number":113,"box":{"x":116,"y":459,"width":738,"height":12}},{"id":"ba30a73c-84fd-46f9-9b98-cc1a1f5383e5","block_type":"box","text":"derivatives. In particular, MiFID II requires European Union Member States to apply position limits to","page_number":113,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"2cfbbe54-d9a2-460e-a770-4b4ad5cb63f7","block_type":"box","text":"the size of a net position a person can hold at any time in commodity derivatives traded on European","page_number":113,"box":{"x":116,"y":490,"width":754,"height":12}},{"id":"8455ab45-c8d2-41cc-b2fe-09c33407eff0","block_type":"box","text":"Union trading venues and in “economically equivalent” OTC contracts. If the requirements of EMIR and","page_number":113,"box":{"x":117,"y":506,"width":769,"height":12}},{"id":"5fe8077a-4be2-4b65-861b-31ddec51b824","block_type":"box","text":"MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":113,"box":{"x":117,"y":521,"width":557,"height":12}},{"id":"9dbffbd3-00cd-4967-8a73-ba67df39dd27","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain","page_number":113,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"ad01bf90-c4a2-4d6e-8301-374a6643b9d9","block_type":"box","text":"prudentially regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to","page_number":113,"box":{"x":117,"y":568,"width":764,"height":12}},{"id":"cd93cd85-939d-4896-8158-091265078977","block_type":"box","text":"include in their derivatives contracts and certain other financial contracts, terms that delay or restrict","page_number":113,"box":{"x":117,"y":583,"width":745,"height":12}},{"id":"3277f22a-7975-4fb2-b3f1-a148271f3713","block_type":"box","text":"the rights of counterparties (such as the Funds) to terminate such contracts, foreclose upon collateral,","page_number":113,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"586213d6-300c-4178-84e1-b692147d5e16","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the prudentially","page_number":113,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"3c92cfbd-5971-4cea-932d-043ca2f7e29b","block_type":"box","text":"regulated entity and/or its affiliates are subject to certain types of resolution or insolvency proceedings.","page_number":113,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"8696901b-f9af-4437-8407-713a83874c95","block_type":"box","text":"Similar regulations and laws have been adopted in non-U.S. jurisdictions that may apply to a Fund’s","page_number":113,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"3c949f44-d565-4573-8675-14551907701b","block_type":"box","text":"counterparties located in those jurisdictions. In particular, in the United Kingdom and the European","page_number":113,"box":{"x":116,"y":661,"width":731,"height":12}},{"id":"658b38f4-af55-496a-95fc-89ef2e937c89","block_type":"box","text":"Union, governmental authorities could reduce, eliminate or convert to equity the liabilities to a Fund of","page_number":113,"box":{"x":117,"y":676,"width":753,"height":12}},{"id":"f2fe053b-3475-4c39-94e9-d2ab30a5ae0e","block_type":"box","text":"a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":113,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"a53aeafd-7193-4bc3-8814-f5415712596c","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely","page_number":113,"box":{"x":116,"y":707,"width":726,"height":12}},{"id":"03dc059a-4237-4d0e-97c5-4fd663ec38b3","block_type":"box","text":"affect a Fund’s ability to terminate existing derivatives contracts, exercise default rights or satisfy","page_number":113,"box":{"x":116,"y":723,"width":716,"height":12}},{"id":"f22b73f1-5a01-4f34-92e7-bf2df31bb7db","block_type":"box","text":"obligations owed to it with collateral received under such contracts.","page_number":113,"box":{"x":116,"y":738,"width":496,"height":12}},{"id":"8a712921-fe13-4b27-8d8a-436349225703","block_type":"box","text":"Risk Factors in Derivatives.","page_number":113,"box":{"x":116,"y":777,"width":202,"height":9}},{"id":"fef6304e-dc74-4cfa-ac1e-918f0178c4a6","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":113,"box":{"x":116,"y":808,"width":620,"height":12}},{"id":"252c16b7-ef6b-4448-abb1-78d5bb8b1998","block_type":"box","text":"Correlation Risk —","page_number":113,"box":{"x":117,"y":831,"width":123,"height":10}},{"id":"88f9df10-7a32-4679-813a-e974601aeee9","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the","page_number":113,"box":{"x":240,"y":831,"width":631,"height":12}},{"id":"fd9f50ae-53e3-4f01-a888-86a65191192b","block_type":"box","text":"value of the portfolio holdings that are being hedged or of the particular market or security to which the","page_number":113,"box":{"x":116,"y":847,"width":765,"height":12}},{"id":"7717372e-f362-48f2-9029-1eeb371b31ef","block_type":"box","text":"Fund seeks exposure. There are a number of factors which may prevent a derivative instrument from","page_number":113,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"6719955e-dc7b-4849-97c7-91496e606ecc","block_type":"box","text":"achieving the desired correlation (or inverse correlation) with an underlying asset, rate or index, such","page_number":113,"box":{"x":116,"y":878,"width":753,"height":12}},{"id":"bdb9ae52-18c3-44a1-a2bd-d971bf123f06","block_type":"box","text":"II-19","page_number":113,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"39248104-4a5f-4299-8a4c-c7a573da7b4d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":113,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2ba30644-0f21-4435-b00f-bf3e857fba6c","block_type":"box","text":"as the impact of fees, expenses and transaction costs, the timing of pricing, and disruptions or illiquidity","page_number":114,"box":{"x":116,"y":87,"width":772,"height":12}},{"id":"9d924f89-0986-4e2e-a3d4-752a209b623d","block_type":"box","text":"in the markets for such derivative instrument.","page_number":114,"box":{"x":117,"y":102,"width":338,"height":10}},{"id":"29ae701f-6786-4c62-b7dc-7ca86e761dc0","block_type":"box","text":"Counterparty Risk —","page_number":114,"box":{"x":117,"y":134,"width":138,"height":12}},{"id":"e7296702-19f0-41b9-830d-73e6a6f80b79","block_type":"box","text":"—","page_number":114,"box":{"x":255,"y":139,"width":22,"height":4}},{"id":"451be482-fa8d-4fd0-8e65-66c5d4bed1b3","block_type":"box","text":"the risk that a derivatives transaction counterparty will be unable or unwilling to","page_number":114,"box":{"x":277,"y":134,"width":590,"height":12}},{"id":"e0c8d322-10f6-4258-841d-74301cc209ef","block_type":"box","text":"make payments or otherwise honor its obligations to a Fund and the related risks of having","page_number":114,"box":{"x":117,"y":149,"width":678,"height":12}},{"id":"c21df35b-50c6-4af8-9dfd-bcf5a06abaf7","block_type":"box","text":"concentrated exposure to such a counterparty. In particular, derivatives traded in OTC markets often","page_number":114,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"fb8e60c6-bc2f-4d8f-9270-bd5b060a5b9f","block_type":"box","text":"are not guaranteed by an exchange or clearing corporation and often do not require payment of","page_number":114,"box":{"x":116,"y":180,"width":714,"height":12}},{"id":"68abd489-7e7e-4022-9f2f-dbbcdf775434","block_type":"box","text":"margin, and to the extent that the Fund has unrealized gains in such instruments or has deposited","page_number":114,"box":{"x":117,"y":196,"width":732,"height":12}},{"id":"9f174ee1-6ec4-44f0-b0a3-5a5946a791ab","block_type":"box","text":"collateral with its counterparties the Fund is at risk that its counterparties will become bankrupt or","page_number":114,"box":{"x":116,"y":211,"width":725,"height":12}},{"id":"54bbce16-3af5-4cfc-b57f-1c306a2fc6f3","block_type":"box","text":"otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":114,"box":{"x":116,"y":227,"width":750,"height":12}},{"id":"e1f37034-d1df-4440-afcc-8327168773c0","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or","page_number":114,"box":{"x":116,"y":242,"width":768,"height":12}},{"id":"b8864177-4df7-4af8-9981-c975799763f3","block_type":"box","text":"that have provided the Fund with a third-party guaranty or other credit support. When a Fund enters","page_number":114,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"db0c2134-1f9d-4de8-84af-e66d61bece66","block_type":"box","text":"into a derivatives transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is","page_number":114,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"1a8a8c32-c087-441d-bc5d-7da04f0084c5","block_type":"box","text":"subject to the credit risk of the clearing house and the clearing member through which it holds its","page_number":114,"box":{"x":116,"y":289,"width":722,"height":12}},{"id":"72fdb5c8-969c-4922-8aa1-526b75c7c3c1","block_type":"box","text":"cleared position. Credit risk of market participants with respect to derivatives that are centrally cleared","page_number":114,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"e7cc2295-3791-420a-93b6-eb74b6427d1e","block_type":"box","text":"is concentrated in a few clearing houses and increasingly fewer clearing members. It is not clear how","page_number":114,"box":{"x":117,"y":320,"width":754,"height":12}},{"id":"1e0c253b-f29c-44bf-ab18-8d5a8b52135e","block_type":"box","text":"an insolvency proceeding of a clearing house would be conducted and what impact an insolvency of a","page_number":114,"box":{"x":116,"y":335,"width":762,"height":12}},{"id":"1b30cd36-5be0-4cba-b775-1f2d0913ebc0","block_type":"box","text":"clearing house would have on the financial system. Also, a Fund will not be fully protected in the event","page_number":114,"box":{"x":116,"y":351,"width":764,"height":12}},{"id":"bdae8cda-176a-4f9a-85d6-b923fe69d686","block_type":"box","text":"of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":114,"box":{"x":116,"y":366,"width":768,"height":12}},{"id":"2554d0da-7298-442a-8a4f-6e8610a94879","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for","page_number":114,"box":{"x":117,"y":382,"width":747,"height":12}},{"id":"4e95bb99-5d0d-4b72-b827-bd3e24036d8f","block_type":"box","text":"cleared derivatives. Although a clearing member is required to segregate assets from customers with","page_number":114,"box":{"x":116,"y":397,"width":755,"height":12}},{"id":"e252e3e7-da5e-4880-a7b6-ecc2bcb7f047","block_type":"box","text":"respect to cleared derivatives positions from the clearing member’s proprietary assets, if a clearing","page_number":114,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"1ff2612d-acdb-4997-848a-17a1f16ff7ab","block_type":"box","text":"member does not comply with the applicable regulations, or in the event of fraud or misappropriation of","page_number":114,"box":{"x":117,"y":428,"width":768,"height":12}},{"id":"ae3da002-62a6-41d5-8347-ab1eddd2a1b3","block_type":"box","text":"customer assets by a clearing member, a Fund could have only an unsecured creditor claim in an","page_number":114,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"a6e84b3f-3f70-4941-b8ee-1c54c5eae71b","block_type":"box","text":"insolvency of the clearing member with respect to the assets held by the clearing member.","page_number":114,"box":{"x":117,"y":459,"width":675,"height":12}},{"id":"aa39226b-c38f-4804-a2ee-a91c8bebe641","block_type":"box","text":"Credit Risk —","page_number":114,"box":{"x":117,"y":490,"width":86,"height":10}},{"id":"f1659e7c-3523-4b73-b611-92d8f9f1f21d","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be","page_number":114,"box":{"x":203,"y":490,"width":668,"height":12}},{"id":"66e9d550-18bd-4b83-87ec-974d19222ea7","block_type":"box","text":"able to honor its financial obligations.","page_number":114,"box":{"x":116,"y":506,"width":280,"height":12}},{"id":"241526a6-b362-4a37-b363-33dbc6304a57","block_type":"box","text":"Currency Risk —","page_number":114,"box":{"x":117,"y":537,"width":109,"height":12}},{"id":"8033578c-518b-4a3b-ae81-b9fde7c45783","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely","page_number":114,"box":{"x":226,"y":537,"width":625,"height":12}},{"id":"53142562-1fb2-48c2-a648-ed51ad256957","block_type":"box","text":"affect the value (in U.S. dollar terms) of a derivative.","page_number":114,"box":{"x":116,"y":552,"width":392,"height":12}},{"id":"18f800a9-80f5-4e94-a059-ad5908986cc0","block_type":"box","text":"Illiquidity Risk —","page_number":114,"box":{"x":117,"y":583,"width":105,"height":12}},{"id":"7297d5a4-fa1c-4f80-88f7-90745bbea1a0","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at","page_number":114,"box":{"x":222,"y":583,"width":644,"height":12}},{"id":"b7885526-88a0-4c3d-aadd-740e2c0760df","block_type":"box","text":"the time or at the price desired by a Fund in connection with payments of margin, collateral, or","page_number":114,"box":{"x":116,"y":599,"width":703,"height":12}},{"id":"b24c25fd-e6fb-438e-877f-0e9ce2e16e7f","block_type":"box","text":"settlement payments. There can be no assurance that a Fund will be able to unwind or offset a","page_number":114,"box":{"x":116,"y":614,"width":708,"height":12}},{"id":"8ad6ba47-73f6-4df9-97ea-deb9dd903100","block_type":"box","text":"derivative at its desired price, in a secondary market or otherwise. It may, therefore, not be possible for","page_number":114,"box":{"x":116,"y":630,"width":768,"height":12}},{"id":"e77b9113-60af-4fba-b8fe-210a242aeab1","block_type":"box","text":"the Fund to unwind its position in a derivative without incurring substantial losses (if at all). Certain","page_number":114,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"1ed56c6b-5a77-4e1f-8723-f776920a8694","block_type":"box","text":"OTC derivatives, including swaps and OTC options, involve substantial illiquidity risk. Illiquidity may","page_number":114,"box":{"x":116,"y":661,"width":736,"height":12}},{"id":"ac2f6d58-967e-47eb-af78-5a27b46c04ba","block_type":"box","text":"also make it more difficult for a Fund to ascertain a market value for such derivatives. A Fund will,","page_number":114,"box":{"x":116,"y":676,"width":723,"height":11}},{"id":"af61a9d7-90ef-496e-8c6e-d01ab917380d","block_type":"box","text":"therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":114,"box":{"x":116,"y":692,"width":719,"height":12}},{"id":"073ef3a0-8f9e-47a5-97ba-5fd8c0b402fe","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which","page_number":114,"box":{"x":117,"y":707,"width":757,"height":12}},{"id":"54eda3ee-245a-4d20-bdeb-6a17ca61c658","block_type":"box","text":"the Manager anticipates the Fund can receive on each business day at least two independent bids or","page_number":114,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"7ee604ef-616a-48c9-a2d4-fbb094e5edb1","block_type":"box","text":"offers, unless a quotation from only one dealer is available, in which case that dealer’s quotation may","page_number":114,"box":{"x":116,"y":738,"width":751,"height":12}},{"id":"b77787dd-b300-4b57-adde-f803bdab2aaa","block_type":"box","text":"be used. The illiquidity of the derivatives markets may be due to various factors, including congestion,","page_number":114,"box":{"x":117,"y":754,"width":752,"height":12}},{"id":"eb8fb7fc-74ba-4c41-8c85-e327576fb75b","block_type":"box","text":"disorderly markets, limitations on deliverable supplies, the participation of speculators, government","page_number":114,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"5d273fce-69d1-4bc3-b427-2a02a6b5d21b","block_type":"box","text":"regulation and intervention, and technical and operational or system failures. In addition, the liquidity of","page_number":114,"box":{"x":117,"y":785,"width":763,"height":12}},{"id":"7d63d0a0-b21b-4b23-a206-7141b594a54a","block_type":"box","text":"a market in an exchange-traded derivative contract may be adversely affected by “daily price","page_number":114,"box":{"x":116,"y":800,"width":688,"height":12}},{"id":"faa438c2-5150-42e6-af1a-558e29c1ff1c","block_type":"box","text":"fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":114,"box":{"x":116,"y":816,"width":747,"height":12}},{"id":"bb8ef456-8cc7-404c-a038-f80eecb3c386","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract,","page_number":114,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"ec223219-ff2b-4825-8160-bcbb7ffe46ae","block_type":"box","text":"no trades may be entered into at a price beyond the limit, thus preventing the liquidation of open","page_number":114,"box":{"x":117,"y":847,"width":717,"height":12}},{"id":"b49805ad-1c8b-47e5-8e52-280d31b359f8","block_type":"box","text":"positions. Prices have in the past moved to the daily limit on a number of consecutive trading days with","page_number":114,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"564c8fe4-51d5-495c-a4aa-7dd831cf8ef9","block_type":"box","text":"little to no trading. If it is not possible to close an open derivative position entered into by the Fund, the","page_number":114,"box":{"x":117,"y":878,"width":762,"height":12}},{"id":"51e92a88-0ccb-4c76-accb-f5ebfbb4da10","block_type":"box","text":"II-20","page_number":114,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0271a82c-bde4-4207-ae03-3780e4217e83","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":114,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8d28359f-d760-4c26-b548-5b237fa096f2","block_type":"box","text":"Fund would continue to be required to make daily cash payments of variation margin in the event of","page_number":115,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"0b25fb12-ac79-4947-bb9e-c3bed8813840","block_type":"box","text":"adverse price movements. In such a situation, if the Fund has insufficient cash, it may have to sell","page_number":115,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"4e07e8f4-fede-49bc-a9c0-d879dbeb6f28","block_type":"box","text":"portfolio securities to meet daily variation margin requirements at a time when it may be","page_number":115,"box":{"x":117,"y":118,"width":654,"height":12}},{"id":"67c3878b-983d-4cc4-82fd-eff4a6490d01","block_type":"box","text":"disadvantageous to do so.","page_number":115,"box":{"x":116,"y":134,"width":201,"height":12}},{"id":"dcd88ecb-b44d-4f2b-87e4-690e9810dba6","block_type":"box","text":"Index Risk —","page_number":115,"box":{"x":117,"y":163,"width":82,"height":10}},{"id":"123e2f4b-0c3f-4eac-b7b5-4a8749a92cbb","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks","page_number":115,"box":{"x":199,"y":163,"width":651,"height":12}},{"id":"e4c76fdf-0e62-45ee-9ad1-cdd3e0316391","block_type":"box","text":"associated with changes in that index. If the index changes, the Fund could receive lower interest","page_number":115,"box":{"x":116,"y":179,"width":728,"height":12}},{"id":"4024bff7-9442-4d2e-a05e-e8a126b79eaa","block_type":"box","text":"payments or experience a reduction in the value of the derivative to below the price that the Fund paid","page_number":115,"box":{"x":117,"y":194,"width":762,"height":12}},{"id":"9a44ba01-884a-4c34-978a-8f0563fd0a59","block_type":"box","text":"for such derivative.","page_number":115,"box":{"x":116,"y":210,"width":146,"height":9}},{"id":"c9423002-abe6-41b8-8200-45a447cef0b7","block_type":"box","text":"Legal Risk","page_number":115,"box":{"x":116,"y":240,"width":79,"height":12}},{"id":"08a35f73-e564-48b3-a721-c9b7025df0b4","block_type":"box","text":"k — the risk of insufficient documentation, insufficient capacity or authority of counterparty, or","page_number":115,"box":{"x":194,"y":240,"width":689,"height":12}},{"id":"79bcd158-fbdf-4e1c-8849-53908f633c69","block_type":"box","text":"legality or enforceability of a contract.","page_number":115,"box":{"x":117,"y":255,"width":281,"height":12}},{"id":"e5351ad1-913e-44db-ae1d-459ceada2859","block_type":"box","text":"Leverage Risk —","page_number":115,"box":{"x":116,"y":285,"width":112,"height":12}},{"id":"2792d15d-0165-49b0-9fbe-0a4ed095cea6","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and","page_number":115,"box":{"x":228,"y":285,"width":619,"height":12}},{"id":"12ae847e-ef75-44d7-aa84-05b2133437ef","block_type":"box","text":"losses. Relatively small market movements may result in large changes in the value of a derivatives","page_number":115,"box":{"x":117,"y":300,"width":744,"height":12}},{"id":"755722c5-d568-4dba-99e9-2604d28851b4","block_type":"box","text":"position and can result in losses that greatly exceed the amount originally invested.","page_number":115,"box":{"x":117,"y":316,"width":621,"height":12}},{"id":"5007654f-90a7-45e3-9122-521735940ddf","block_type":"box","text":"Market Risk —","page_number":115,"box":{"x":116,"y":346,"width":93,"height":9}},{"id":"7db94856-7354-4c43-a65a-ace18d4734aa","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to","page_number":115,"box":{"x":209,"y":346,"width":653,"height":12}},{"id":"b602a1e2-9871-4683-ad2f-5eec12253615","block_type":"box","text":"the value of the underlying asset will adversely affect the value of a derivative. In the event of an","page_number":115,"box":{"x":116,"y":361,"width":719,"height":12}},{"id":"18e29b4f-eee9-4d84-b30a-dff3f5a2821d","block_type":"box","text":"adverse movement, a Fund may be required to pay substantial additional margin to maintain its","page_number":115,"box":{"x":116,"y":377,"width":713,"height":12}},{"id":"0bc5a2b6-e29c-403f-b342-92358da1902f","block_type":"box","text":"position or the Fund’s returns may be adversely affected.","page_number":115,"box":{"x":117,"y":392,"width":427,"height":12}},{"id":"832fc034-1217-45fd-b2ad-2d1a5929096d","block_type":"box","text":"Operational Risk","page_number":115,"box":{"x":117,"y":422,"width":124,"height":12}},{"id":"a4849730-3eab-4b5e-8902-d305da23e618","block_type":"box","text":"k — the risk related to potential operational issues, including documentation issues,","page_number":115,"box":{"x":240,"y":422,"width":616,"height":12}},{"id":"3aebe795-cdbb-4f39-83b0-666e1edf5a52","block_type":"box","text":"settlement issues, systems failures, inadequate controls and human error.","page_number":115,"box":{"x":116,"y":437,"width":555,"height":13}},{"id":"99895cfa-b7e4-4d0d-95fc-3ec7e64bc5ef","block_type":"box","text":"Valuation Risk —","page_number":115,"box":{"x":118,"y":467,"width":110,"height":10}},{"id":"098ae921-4dd4-43e9-9772-f8ed1f95e2e9","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the","page_number":115,"box":{"x":228,"y":467,"width":614,"height":12}},{"id":"586abea7-3054-4a3c-bb21-1a72fbed9f38","block_type":"box","text":"market. This is possible especially in times of market distress, since many market participants may be","page_number":115,"box":{"x":117,"y":483,"width":760,"height":12}},{"id":"f36a7877-23b5-47dd-ae96-85031350aa55","block_type":"box","text":"reluctant to purchase complex instruments or quote prices for them.","page_number":115,"box":{"x":117,"y":498,"width":507,"height":12}},{"id":"1914b21e-8ee1-4e3b-8dbd-fb87de8d0970","block_type":"box","text":"Volatility Risk —","page_number":115,"box":{"x":118,"y":528,"width":102,"height":12}},{"id":"5d0715d2-5e49-496a-963e-c26e45044646","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time","page_number":115,"box":{"x":220,"y":528,"width":619,"height":12}},{"id":"0283279a-8667-4010-87bd-2c63a97b302b","block_type":"box","text":"period.","page_number":115,"box":{"x":117,"y":544,"width":55,"height":11}},{"id":"0de605c7-f22d-4898-82f0-2984154d7f54","block_type":"box","text":"Types of Derivatives Transactions.","page_number":115,"box":{"x":118,"y":580,"width":261,"height":13}},{"id":"c3dc470d-a672-46b1-aa8c-46dcfb845399","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and","page_number":115,"box":{"x":116,"y":610,"width":715,"height":12}},{"id":"ebb2edfb-eb26-4192-912f-4139268ad90b","block_type":"box","text":"restrictions, including the following:","page_number":115,"box":{"x":117,"y":626,"width":263,"height":12}},{"id":"a4fb97e5-f045-4ad3-9d8a-fde3682013b9","block_type":"box","text":"Futures.","page_number":115,"box":{"x":116,"y":663,"width":60,"height":9}},{"id":"1571fd7c-fcd6-43bd-afea-b3a2e4fb9193","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are","page_number":115,"box":{"x":116,"y":692,"width":713,"height":13}},{"id":"e5e480cb-72b7-409a-9834-d5dddbcae71a","block_type":"box","text":"standardized, exchange-traded contracts that require a purchaser to take delivery, and a seller to make","page_number":115,"box":{"x":116,"y":708,"width":767,"height":12}},{"id":"6944f2f1-b0a6-4b60-a2a4-e3b750c08037","block_type":"box","text":"delivery, of a specified amount of an asset at a specified future date and price. Upon purchasing or","page_number":115,"box":{"x":116,"y":723,"width":734,"height":13}},{"id":"10aa6e12-cb01-449d-9836-bd3274c4bc6f","block_type":"box","text":"selling a futures contract, a Fund is required to deposit initial margin equal to a percentage of the","page_number":115,"box":{"x":116,"y":739,"width":718,"height":12}},{"id":"b068a778-daae-4adc-b7bc-0986819f225a","block_type":"box","text":"contract value. Futures contracts are marked to market daily for the duration of the contract, and the","page_number":115,"box":{"x":116,"y":754,"width":743,"height":13}},{"id":"d0c67ba3-565c-4b26-8197-54a6ba474185","block_type":"box","text":"Fund will either post additional margin or be entitled to a payment, as applicable, based on the","page_number":115,"box":{"x":117,"y":770,"width":699,"height":12}},{"id":"64b58167-8673-4ebb-a14a-20aa46450950","block_type":"box","text":"mark-to-market movement of the contract.","page_number":115,"box":{"x":117,"y":786,"width":311,"height":9}},{"id":"d084d0bf-b3d2-486f-9044-542fa44ba123","block_type":"box","text":"A Fund may sell a futures contract prior to the completion","page_number":115,"box":{"x":116,"y":815,"width":425,"height":12}},{"id":"033086b1-b3d0-424d-87ea-84069bd04723","block_type":"box","text":"of its term to limit its risk of loss from a","page_number":115,"box":{"x":548,"y":815,"width":284,"height":10}},{"id":"ffb90257-7a81-4415-8b61-6092454f3802","block_type":"box","text":"decline in the market value of portfolio holdings correlated with the futures contract. However, in the","page_number":115,"box":{"x":116,"y":831,"width":745,"height":12}},{"id":"f81702c3-b3ff-4543-86ce-be9b5d4bff50","block_type":"box","text":"event the market value of the portfolio holdings correlated with the futures contract increases rather","page_number":115,"box":{"x":116,"y":846,"width":742,"height":12}},{"id":"37390169-e205-4941-801b-aa47323d67cf","block_type":"box","text":"than decreases, a Fund will realize a loss on the futures position and a lower return on the portfolio","page_number":115,"box":{"x":116,"y":862,"width":739,"height":12}},{"id":"444b495b-5bbc-4254-a663-4f730d86bbe6","block_type":"box","text":"holdings than would have been realized without the purchase of the futures contract.","page_number":115,"box":{"x":117,"y":877,"width":631,"height":12}},{"id":"b4dc1fe2-34bd-4da0-b9aa-5987159a100d","block_type":"box","text":"II-21","page_number":115,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"a4689bc1-403c-43e6-83ee-41cdcda28181","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":115,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"de2e0b3b-b912-4ce9-a352-0bd2f8ba314e","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing","page_number":116,"box":{"x":116,"y":87,"width":697,"height":12}},{"id":"3ecdedd8-d5c9-4432-8e44-cf7024e5ec33","block_type":"box","text":"securities or commodities directly. In the event that such securities or commodities decline in value or a","page_number":116,"box":{"x":116,"y":103,"width":772,"height":12}},{"id":"2326732a-7903-491e-bd54-4ff07c9fcace","block_type":"box","text":"Fund determines not to complete an anticipatory hedge transaction relating to a futures contract,","page_number":116,"box":{"x":117,"y":118,"width":720,"height":12}},{"id":"3b5243c8-111f-4780-a884-e6f15d669fd6","block_type":"box","text":"however, the Fund may realize a loss relating to the futures position.","page_number":116,"box":{"x":117,"y":134,"width":512,"height":12}},{"id":"2fc0636a-c63f-4b8e-8911-1b99dfa1b0ce","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may","page_number":116,"box":{"x":117,"y":165,"width":763,"height":12}},{"id":"dbfab2e8-8d12-4bb6-bc17-0e3d18c2fb49","block_type":"box","text":"be required to liquidate positions or may not be able to fully implement trading instructions. Any such","page_number":116,"box":{"x":117,"y":180,"width":750,"height":12}},{"id":"112a6a2c-dc1a-42d2-82d6-daba7814a362","block_type":"box","text":"liquidation or limited implementation could result in substantial costs to a Fund. See “—Regulation of","page_number":116,"box":{"x":117,"y":196,"width":750,"height":12}},{"id":"e61de915-2d71-4731-92ac-2bc396f07528","block_type":"box","text":"Derivatives—Dodd-Frank Regulations” above.","page_number":116,"box":{"x":117,"y":211,"width":346,"height":12}},{"id":"51e95168-fbac-46d2-9d65-3bc29e30d05c","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including","page_number":116,"box":{"x":116,"y":242,"width":706,"height":12}},{"id":"23dfad87-0a91-4d9b-95ad-fa1a321f2c03","block_type":"box","text":"financial futures and stock indices. Generally, these strategies would be used under the same market","page_number":116,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"b6fcc286-b72b-41ac-80b8-c6bbdbe31d8b","block_type":"box","text":"and market sector conditions (","page_number":116,"box":{"x":116,"y":273,"width":225,"height":12}},{"id":"e9e1d69d-173f-4376-a026-2e11d355ab14","block_type":"box","text":"i.e.","page_number":116,"box":{"x":342,"y":273,"width":20,"height":10}},{"id":"11450980-7ba9-4cb4-b124-4e1877bd652e","block_type":"box","text":", conditions relating to specific types of investments) in which the","page_number":116,"box":{"x":365,"y":273,"width":485,"height":12}},{"id":"7dd87cd1-2faf-4892-b465-d8c89a23a649","block_type":"box","text":"Fund entered into futures transactions. A Fund may purchase put options or write call options on","page_number":116,"box":{"x":117,"y":289,"width":720,"height":12}},{"id":"b6091414-c58e-460a-8e72-39c14871beb1","block_type":"box","text":"futures contracts and stock indices in lieu of selling the underlying futures contract in anticipation of a","page_number":116,"box":{"x":116,"y":304,"width":754,"height":12}},{"id":"212b3fa7-bc83-41ba-8a1b-b52824115791","block_type":"box","text":"decrease in the market value of its securities. Similarly, a Fund can purchase call options, or write put","page_number":116,"box":{"x":116,"y":320,"width":759,"height":12}},{"id":"2181d71f-02a1-4103-bea0-3f96c5a61d68","block_type":"box","text":"options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":116,"box":{"x":116,"y":335,"width":705,"height":12}},{"id":"96d8ff5b-cfa8-4ac4-a163-de8dc24da3a7","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of","page_number":116,"box":{"x":116,"y":351,"width":707,"height":12}},{"id":"670d3446-2d76-4f9f-901a-53fd25e3bc7b","block_type":"box","text":"securities which the Fund intends to purchase.","page_number":116,"box":{"x":116,"y":366,"width":350,"height":12}},{"id":"f08a54c1-46f7-4d59-8d65-446786262626","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to","page_number":116,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"790e2be2-0ed7-4414-bfdf-bfd1e72e4fbf","block_type":"box","text":"futures contracts. These instruments may take a variety of forms, such as debt securities with interest","page_number":116,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"d811c0ff-b8f4-43cb-b27f-28f8908775d6","block_type":"box","text":"or principal payments determined by reference to the value of a security, an index of securities or a","page_number":116,"box":{"x":116,"y":428,"width":740,"height":12}},{"id":"e5078c84-22ed-4fc6-9df8-544cbc137c32","block_type":"box","text":"commodity at a future point in time. The risks of such investments could reflect the risks of investing in","page_number":116,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"7976c6f6-d1c8-4c43-848c-351ef21fc318","block_type":"box","text":"futures and securities, including volatility and illiquidity.","page_number":116,"box":{"x":116,"y":459,"width":410,"height":12}},{"id":"73dcaf43-6d5f-4e1f-af28-438e7abb585c","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage","page_number":116,"box":{"x":117,"y":490,"width":751,"height":12}},{"id":"cf02b225-c2db-4c93-a102-0dffc671402b","block_type":"box","text":"risk, illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the","page_number":116,"box":{"x":117,"y":506,"width":726,"height":12}},{"id":"b9bdbf81-1180-4330-9908-a89380dcfba3","block_type":"box","text":"clearinghouse. See “—Risk Factors in Derivatives” above.","page_number":116,"box":{"x":116,"y":521,"width":436,"height":12}},{"id":"b2dfa6be-388b-494d-8286-0a630982fe9f","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a","page_number":116,"box":{"x":117,"y":552,"width":771,"height":12}},{"id":"fe0f28a0-0828-4340-bc7a-3d4e2d8238ee","block_type":"box","text":"limit is set by a regulator, such as a government entity, on the total amount of specific greenhouse","page_number":116,"box":{"x":117,"y":568,"width":732,"height":12}},{"id":"95cb6a47-6cf6-44e6-b114-ec1b407d0796","block_type":"box","text":"gases, such as CO2, that can be emitted by regulated entities, such as manufacturers or energy","page_number":116,"box":{"x":116,"y":583,"width":720,"height":12}},{"id":"a8494083-66eb-4d16-a9a7-22cb62f5612c","block_type":"box","text":"producers. The regulator then may issue or sell individual “emission allowances” to regulated entities,","page_number":116,"box":{"x":117,"y":599,"width":756,"height":12}},{"id":"3718ec76-3dc8-4db6-9f57-a7f91cd60cf6","block_type":"box","text":"which can then be traded on the open market. Commodity futures contracts linked to the value of","page_number":116,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"17d402ca-b0a2-4848-81b3-1f23d1a24c07","block_type":"box","text":"emission allowances are known as “carbon futures.”","page_number":116,"box":{"x":116,"y":630,"width":392,"height":9}},{"id":"b92442d8-3988-488a-820a-8cb21765d8a0","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the","page_number":116,"box":{"x":116,"y":661,"width":756,"height":12}},{"id":"4b52b370-6c83-4a68-b1d7-467fb123fafa","block_type":"box","text":"demand for carbon futures contracts. Changes in law, market conditions and expectations, position","page_number":116,"box":{"x":116,"y":676,"width":734,"height":12}},{"id":"71d1de76-6f42-409e-a2ea-110f4a6925c3","block_type":"box","text":"limits, collateral requirements, and other factors each can impact the supply of and demand for carbon","page_number":116,"box":{"x":117,"y":692,"width":758,"height":12}},{"id":"b04510ff-bb4d-4d32-817c-dcb770b1abbd","block_type":"box","text":"futures contracts. The market for carbon futures contracts is still developing and may be subject to","page_number":116,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"e70a5efc-db7a-4469-bf23-f0efd2f0b6fd","block_type":"box","text":"periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the","page_number":116,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"c438f5ee-9c83-4c70-9df4-580c8050e7cf","block_type":"box","text":"desired price. Market disruptions or volatility can also make it difficult to find a counterparty willing to","page_number":116,"box":{"x":116,"y":738,"width":742,"height":12}},{"id":"7d4db730-4078-4549-b546-1c3cffbb17ca","block_type":"box","text":"transact at a reasonable price and sufficient size.","page_number":116,"box":{"x":116,"y":754,"width":363,"height":12}},{"id":"cd9b7d76-bd1e-4404-aa13-d5fa2a738854","block_type":"box","text":"Swap Agreements.","page_number":116,"box":{"x":117,"y":792,"width":139,"height":12}},{"id":"4370497f-14ea-4433-808e-a142bb37861f","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap","page_number":116,"box":{"x":116,"y":823,"width":699,"height":13}},{"id":"41f623af-c7e6-4dd4-b464-4df02e70dcaf","block_type":"box","text":"agreements are OTC contracts entered into primarily by financial institutions and institutional investors","page_number":116,"box":{"x":116,"y":839,"width":764,"height":12}},{"id":"5037a00e-b511-4448-863d-707721b9ee8f","block_type":"box","text":"which may or may not be cleared by a central clearinghouse. In a standard “swap” transaction, two","page_number":116,"box":{"x":116,"y":854,"width":738,"height":13}},{"id":"9e7deeea-88b9-44bf-8c40-c28e63acabad","block_type":"box","text":"parties agree to exchange the returns earned or realized from one or more underlying assets or rates","page_number":116,"box":{"x":117,"y":870,"width":755,"height":12}},{"id":"9b2b4aad-5094-4c97-9df7-4f7fef609837","block_type":"box","text":"II-22","page_number":116,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"8f2b6e47-39ee-4e14-8eca-a80ec2feb359","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":116,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e37754ce-2fbc-47cc-9be0-bd9337af6a24","block_type":"box","text":"of return, which may be adjusted for an interest factor. The gross returns to be exchanged or","page_number":117,"box":{"x":116,"y":87,"width":693,"height":12}},{"id":"0b338599-7811-4ffd-8ed2-bf28b499d3db","block_type":"box","text":"“swapped” between the parties are generally calculated with respect to a “notional amount,”","page_number":117,"box":{"x":116,"y":102,"width":684,"height":13}},{"id":"cb39645b-e6c3-4ff3-88dc-c2f0ec69ab4e","block_type":"box","text":"e.g.","page_number":117,"box":{"x":801,"y":105,"width":26,"height":10}},{"id":"d9e8567f-4540-429a-8af6-d794a34cb91d","block_type":"box","text":", the","page_number":117,"box":{"x":830,"y":103,"width":36,"height":11}},{"id":"60779a56-f0a9-48b7-b8a7-bf2ea41cc052","block_type":"box","text":"return or increase in value of a particular dollar amount invested at a particular interest rate, in a","page_number":117,"box":{"x":117,"y":118,"width":716,"height":12}},{"id":"0d929eb4-f5d7-40ee-a669-52611495df85","block_type":"box","text":"particular foreign currency, or in a “basket” of securities representing a particular index. The notional","page_number":117,"box":{"x":117,"y":134,"width":747,"height":12}},{"id":"3439399b-3f9d-4477-a78e-310caf71f2d4","block_type":"box","text":"amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":117,"box":{"x":116,"y":149,"width":726,"height":12}},{"id":"88bca07c-9b9c-4cf1-b0ec-74e601d24ffe","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will","page_number":117,"box":{"x":116,"y":165,"width":736,"height":12}},{"id":"c74cf5b8-f893-4a82-8fc6-79f514cee288","block_type":"box","text":"generally be equal only to the net amount to be paid or received under the agreement based on the","page_number":117,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"0c26464c-fb86-4f99-b220-411d478ea12c","block_type":"box","text":"relative values of the positions held by each party to the agreement. Swaps that are not cleared involve","page_number":117,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"0f7422ef-5b79-4d35-8acd-0075045af8ea","block_type":"box","text":"substantial counterparty risk. A Fund will typically attempt to mitigate this counterparty risk by entering","page_number":117,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"a063b406-1b34-47df-9a40-e4fc73b7ae1c","block_type":"box","text":"into swap agreements only with creditworthy entities that have substantial capital or that have provided","page_number":117,"box":{"x":117,"y":227,"width":767,"height":12}},{"id":"b720fac4-7747-479a-a717-bf0711428859","block_type":"box","text":"the Fund with a third-party guaranty or other credit support. A Fund’s ability to use swap agreements","page_number":117,"box":{"x":116,"y":242,"width":751,"height":12}},{"id":"9a86c973-4621-4ec7-979c-28ae5b501249","block_type":"box","text":"may be restricted by the tax rules applicable to registered investment companies.","page_number":117,"box":{"x":117,"y":258,"width":607,"height":12}},{"id":"a02493b5-69f7-4d56-b3f6-60bf9a23e052","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":117,"box":{"x":117,"y":289,"width":348,"height":12}},{"id":"f623dcd4-c56d-4a2a-bce4-96a93112ccdc","block_type":"box","text":"Certain Funds may enter into credit default swaps and","page_number":117,"box":{"x":466,"y":289,"width":407,"height":12}},{"id":"442964d4-deee-46b2-ade5-0fe2ef80935c","block_type":"box","text":"similar instruments. Credit default swaps are standardized agreements in which the protection “buyer”","page_number":117,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"f7ae0247-6f5e-4cce-a09c-d3c9f330d17f","block_type":"box","text":"pays the protection “seller” an up-front payment, or a periodic stream of payments, over the term of the","page_number":117,"box":{"x":117,"y":320,"width":768,"height":12}},{"id":"720cb7d3-8462-42d4-858c-b921f0657eec","block_type":"box","text":"contract, provided generally that no credit event on a reference obligation has occurred. If a credit","page_number":117,"box":{"x":116,"y":335,"width":730,"height":12}},{"id":"d177888b-c69d-46be-b4a2-667d4f522b56","block_type":"box","text":"event occurs, the seller generally must pay the buyer the difference between the notional amount of","page_number":117,"box":{"x":116,"y":351,"width":745,"height":12}},{"id":"749ffaba-6778-43ac-8707-ca26f632f222","block_type":"box","text":"the contract and the value of a portfolio of securities issued by the reference entity. A Fund may be","page_number":117,"box":{"x":116,"y":366,"width":738,"height":12}},{"id":"52f0ac9e-81b0-4021-9d1f-65ddc6c50c67","block_type":"box","text":"either the buyer or seller in the transaction. The Funds may enter into credit default swaps that","page_number":117,"box":{"x":116,"y":382,"width":706,"height":12}},{"id":"c18ec4e1-6a54-4f53-826d-db87ce0fd030","block_type":"box","text":"reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that make","page_number":117,"box":{"x":117,"y":397,"width":761,"height":12}},{"id":"885e42b0-8e8c-4c29-b7d8-dba40b37fbcd","block_type":"box","text":"up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name","page_number":117,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"450124c9-648c-4356-9dc4-800432ccd636","block_type":"box","text":"CDS and index CDS.","page_number":117,"box":{"x":117,"y":428,"width":161,"height":10}},{"id":"6173d0d0-cc20-490a-93cf-7cace0354070","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not","page_number":117,"box":{"x":117,"y":459,"width":706,"height":12}},{"id":"0f9fb3d7-8677-41d8-a3ab-6991b0820734","block_type":"box","text":"currently held by a Fund. In circumstances in which a Fund does not own the securities or loans that","page_number":117,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"34597a96-aa8f-4e5e-a985-ccb343b9b8a0","block_type":"box","text":"are deliverable under a credit default swap, the Fund is exposed to the risk that deliverable securities","page_number":117,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"ed3f55df-7112-4c20-89ce-83e9f75148c5","block_type":"box","text":"will not be available in the market, or will be available only at unfavorable prices, as would be the case","page_number":117,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"e66fc59c-7ef8-4b1d-81a6-0f5f3c7cff68","block_type":"box","text":"in a so-called “short squeeze.” In certain instances of issuer defaults or restructurings, it has been","page_number":117,"box":{"x":117,"y":521,"width":729,"height":12}},{"id":"9678f71c-d8c5-4e8a-9b0f-2a0c8a082118","block_type":"box","text":"unclear under the standard industry documentation for credit default swaps whether or not a “credit","page_number":117,"box":{"x":117,"y":537,"width":739,"height":12}},{"id":"42d1f7e2-b039-4cf4-a496-674a8c3d3bd9","block_type":"box","text":"event” triggering the seller’s payment obligation had occurred. Certain initiatives adopted by derivatives","page_number":117,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"be8664d2-7429-4b6e-899a-c6e88eb2112d","block_type":"box","text":"market participants, including the International Swaps and Derivatives Association (“ISDA”), are","page_number":117,"box":{"x":117,"y":568,"width":713,"height":12}},{"id":"0e2a82a1-a96e-44e8-aff5-6d25ca5e20d4","block_type":"box","text":"designed to implement uniform settlement terms into standard credit default swap documentation, as","page_number":117,"box":{"x":116,"y":583,"width":753,"height":12}},{"id":"c785a60a-d183-4dbe-be62-0ae29de79a3c","block_type":"box","text":"well as refine the practices for the transparent conduct of the credit default swap market generally.","page_number":117,"box":{"x":116,"y":599,"width":735,"height":12}},{"id":"b919f3f6-046f-48e3-87f6-6a576cdf9dd4","block_type":"box","text":"Among these initiatives are the ISDA Credit Derivatives Determination Committee and the","page_number":117,"box":{"x":116,"y":614,"width":672,"height":12}},{"id":"e8361ce0-3d54-405a-a3fc-4e7ff6e76e10","block_type":"box","text":"implementation of market-wide cash settlement protocols applicable to all market-standard credit","page_number":117,"box":{"x":117,"y":630,"width":722,"height":12}},{"id":"95794e87-7a4a-4a11-a29a-ccca22450231","block_type":"box","text":"default swaps. These initiatives are intended to reduce both the uncertainty as to the occurrence of","page_number":117,"box":{"x":116,"y":645,"width":739,"height":12}},{"id":"6ec42394-f0d3-465b-ae41-4a7c8c2747b5","block_type":"box","text":"credit events and the risk of a “short squeeze” by providing that the ISDA Credit Derivatives","page_number":117,"box":{"x":116,"y":661,"width":679,"height":12}},{"id":"072d243f-a069-4b32-b510-6712e7c1ef3e","block_type":"box","text":"Determinations Committee will make determinations as to whether a credit event has occurred,","page_number":117,"box":{"x":117,"y":676,"width":704,"height":11}},{"id":"720d74a7-5f6d-4471-bb61-2f13754ebdb1","block_type":"box","text":"establish an auction to determine a settlement price and identify the deliverable securities for purposes","page_number":117,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"0e425bfa-b371-4021-97db-46ec0d0107ea","block_type":"box","text":"of the auction, although the ISDA Credit Derivatives Determinations Committee may in certain limited","page_number":117,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"79fc1762-5ca8-46c7-9220-810d893d1690","block_type":"box","text":"circumstances refrain from doing so. In the event the ISDA Credit Derivatives Determinations","page_number":117,"box":{"x":116,"y":723,"width":691,"height":12}},{"id":"ccb16a88-d061-49fe-91cd-495561147439","block_type":"box","text":"Committee cannot reach a timely resolution with respect to a “credit event” or otherwise does not","page_number":117,"box":{"x":117,"y":738,"width":718,"height":12}},{"id":"5072b3c4-c6d1-4c55-bef2-563c01987085","block_type":"box","text":"establish a cash settlement auction, a Fund may not be able to realize the full value of the credit","page_number":117,"box":{"x":116,"y":754,"width":713,"height":12}},{"id":"3d9c6159-6ec3-4d57-bc8c-5fd5a32592a5","block_type":"box","text":"default swap upon a default by the reference entity. Furthermore, a Fund may enter into certain credit","page_number":117,"box":{"x":116,"y":769,"width":753,"height":12}},{"id":"6dc3374c-8d63-4587-94e0-0a69f980ab50","block_type":"box","text":"default swaps or similar instruments that may not be covered by these initiatives.","page_number":117,"box":{"x":116,"y":785,"width":598,"height":12}},{"id":"944ee040-365f-495a-ae93-601bc10d116c","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","page_number":117,"box":{"x":117,"y":816,"width":723,"height":12}},{"id":"89aa8169-ede6-42a9-afb1-9ae8cf416217","block_type":"box","text":"recover nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value","page_number":117,"box":{"x":117,"y":831,"width":757,"height":12}},{"id":"c589710e-a914-40fd-adda-5ebbb3eb0deb","block_type":"box","text":"of any deliverable obligation received by the Fund or the amount of cash settlement received by the","page_number":117,"box":{"x":116,"y":847,"width":744,"height":12}},{"id":"af3b6537-2ce1-4b3f-b92f-8c1dc1590cea","block_type":"box","text":"Fund pursuant to the relevant cash settlement auction, together with the up-front or periodic payments","page_number":117,"box":{"x":117,"y":862,"width":763,"height":12}},{"id":"332bd2c1-7275-4a8b-9512-0126a9e53954","block_type":"box","text":"previously received, may be less than the amount it pays to the buyer, resulting in a loss of value to the","page_number":117,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"e8674fbb-4ec9-40c9-8049-f4bf613464bf","block_type":"box","text":"II-23","page_number":117,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6bf75ea3-addb-4a31-8985-95f04ffa22e7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":117,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"204b4e2b-84fb-4500-9581-3a6d81f237e5","block_type":"box","text":"Fund. A Fund that sells credit default swaps incurs leveraged exposure to the credit of one or more","page_number":118,"box":{"x":117,"y":87,"width":739,"height":12}},{"id":"84ca3fbc-9072-4967-a1f9-61ad3bcfd684","block_type":"box","text":"reference entities and is subject to many of the same risks it would incur if it were holding debt","page_number":118,"box":{"x":117,"y":102,"width":703,"height":13}},{"id":"a595d6bc-9a5d-40c5-8004-de15e6e60c11","block_type":"box","text":"securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":118,"box":{"x":116,"y":118,"width":742,"height":12}},{"id":"beca7d10-ef9e-4bdf-b49a-50b34aa43e05","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt","page_number":118,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"dfac1fdd-784e-49b2-8c40-e302a4fa389e","block_type":"box","text":"obligations. In the event the ISDA Credit Derivatives Determinations Committee does not establish a","page_number":118,"box":{"x":116,"y":149,"width":750,"height":12}},{"id":"e63de067-a47d-4e1a-8ef0-ba0f868564c6","block_type":"box","text":"cash settlement auction and identify the relevant deliverable securities or loans, the credit default swap","page_number":118,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"8698c2d3-9fea-4479-b083-2d4edc276631","block_type":"box","text":"buyer will have broad discretion to select which of the reference entity’s debt obligations to deliver to","page_number":118,"box":{"x":117,"y":180,"width":748,"height":12}},{"id":"d9cd3b74-4ee4-4123-abfd-8eee27dea62b","block_type":"box","text":"the Fund following a credit event and will likely choose the obligations with the lowest market value in","page_number":118,"box":{"x":116,"y":196,"width":755,"height":12}},{"id":"3f84614f-649a-4332-aa6f-17ad3829c973","block_type":"box","text":"order to maximize the payment obligations of the Fund. In addition, credit default swaps generally trade","page_number":118,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"d0ccb9f7-307d-44f1-ba6b-a0dc7304a438","block_type":"box","text":"on the basis of theoretical pricing and valuation models, which may not accurately value such swap","page_number":118,"box":{"x":116,"y":227,"width":742,"height":12}},{"id":"2485b4a1-fb4e-4b9d-9cdf-c241d3bff358","block_type":"box","text":"positions when established or when subsequently traded or unwound under actual market conditions.","page_number":118,"box":{"x":117,"y":242,"width":756,"height":12}},{"id":"305b491e-7bb4-429f-bc5c-1d50fb74b4df","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for","page_number":118,"box":{"x":117,"y":274,"width":719,"height":13}},{"id":"ed622c9a-9c04-494e-b660-bf5c229fab80","block_type":"box","text":"clearing to regulated clearinghouses. See “—Derivatives—Regulation of Derivatives—Dodd-Frank","page_number":118,"box":{"x":116,"y":290,"width":734,"height":12}},{"id":"fb385dd6-07a5-425e-bb92-80c95860e911","block_type":"box","text":"Regulations” above. Other single-name CDS and index CDS are permitted, although not required, to","page_number":118,"box":{"x":117,"y":305,"width":750,"height":13}},{"id":"e30398a0-5ea4-4a67-a4b9-d60626a6b8f1","block_type":"box","text":"be cleared through regulated clearinghouses. The Funds clear all credit default swaps that are subject","page_number":118,"box":{"x":117,"y":321,"width":762,"height":12}},{"id":"08486ebe-b0ba-4b60-8f09-a9337905be34","block_type":"box","text":"to mandatory clearing and may voluntarily clear some, but not all, of the other credit default swaps not","page_number":118,"box":{"x":116,"y":336,"width":762,"height":13}},{"id":"b577fd4f-b85a-4daf-b64b-dfa31cc37d2c","block_type":"box","text":"subject to mandatory clearing. The Funds face counterparty risk with respect to the clearinghouse","page_number":118,"box":{"x":116,"y":352,"width":731,"height":12}},{"id":"d3654ae4-59d5-431a-8da6-6821e7dc0e02","block_type":"box","text":"when entering into cleared single-name CDS and cleared index CDS. The Funds face significant","page_number":118,"box":{"x":116,"y":367,"width":722,"height":13}},{"id":"de539e0e-8bb0-44c9-84a4-ff522ac03e0d","block_type":"box","text":"counterparty risk with respect to their counterparties to non-cleared credit default swaps and similar","page_number":118,"box":{"x":116,"y":383,"width":743,"height":12}},{"id":"ffcf0f3c-3f77-40c5-bb01-188ec9141441","block_type":"box","text":"instruments. A Fund typically will enter into non-cleared credit default swaps and similar instruments","page_number":118,"box":{"x":117,"y":398,"width":746,"height":13}},{"id":"2fd1d8e4-45ca-462d-8dc6-8edd8b421c99","block_type":"box","text":"with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":118,"box":{"x":116,"y":414,"width":771,"height":12}},{"id":"1ffd7e2e-3266-4f43-b9ae-d91104f6196b","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":118,"box":{"x":116,"y":430,"width":373,"height":12}},{"id":"e24ddfdd-7cc9-43c0-b5b3-1f52260e25ea","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either","page_number":118,"box":{"x":117,"y":462,"width":755,"height":12}},{"id":"1b75c34e-fa35-41c6-816e-934453633f9b","block_type":"box","text":"as protection buyer or protection seller. While these contracts are similar in their operation to the","page_number":118,"box":{"x":116,"y":477,"width":720,"height":12}},{"id":"adf08320-bc5c-4c84-91b5-b4b262950113","block_type":"box","text":"market-standard credit default swaps described above, they are less standardized and instead have","page_number":118,"box":{"x":117,"y":493,"width":746,"height":12}},{"id":"c612ec82-8dd7-42ac-b361-697fdcfeef21","block_type":"box","text":"bespoke or tailored features. For example, as compared to market-standard credit defaults, the range","page_number":118,"box":{"x":117,"y":508,"width":758,"height":12}},{"id":"0c39fc8e-ab0d-4638-be76-0b6303836a5d","block_type":"box","text":"of “credit events” triggering settlement of such bespoke contracts may be narrower or broader, any","page_number":118,"box":{"x":116,"y":524,"width":737,"height":12}},{"id":"be6ec0db-10c4-444c-944b-fd6afdb1282a","block_type":"box","text":"such triggered contracts are settled by physical delivery of the underlying security or loan to or by the","page_number":118,"box":{"x":116,"y":539,"width":755,"height":12}},{"id":"c444901e-ff4f-49eb-9259-e5e7c2ecb603","block_type":"box","text":"Fund rather than by way of cash settlement, and there may be a wider range of securities as the","page_number":118,"box":{"x":117,"y":555,"width":719,"height":12}},{"id":"3515778b-fa86-4eb3-89e2-c93ef1840a73","block_type":"box","text":"reference obligations and/or deliverable obligations.","page_number":118,"box":{"x":117,"y":570,"width":388,"height":12}},{"id":"8a4183f6-27ed-46df-a272-59f9e3900deb","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund","page_number":118,"box":{"x":117,"y":603,"width":752,"height":12}},{"id":"b5d018ac-27b8-4ad5-896c-23213889ddc7","block_type":"box","text":"had invested in the reference obligation directly and are subject to significant credit risk, correlation","page_number":118,"box":{"x":117,"y":618,"width":738,"height":12}},{"id":"22a4d0ac-1e4b-4518-9f8b-0a125259a681","block_type":"box","text":"risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":118,"box":{"x":117,"y":634,"width":684,"height":12}},{"id":"bf8fe658-aa99-4572-8da6-dfd7927cbf8a","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":118,"box":{"x":117,"y":658,"width":292,"height":12}},{"id":"fe677273-e07b-4b75-9039-bfee237c07bb","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of","page_number":118,"box":{"x":410,"y":658,"width":450,"height":12}},{"id":"b6376146-0af5-427a-806f-36cc447c95a2","block_type":"box","text":"interest rate swaps and interest rate caps and floors. As described in further detail below, a Fund may","page_number":118,"box":{"x":117,"y":673,"width":755,"height":12}},{"id":"f4e921d7-831a-4c85-b797-de662cf237a9","block_type":"box","text":"enter into these transactions primarily to preserve a return or spread on a particular investment or","page_number":118,"box":{"x":116,"y":689,"width":724,"height":12}},{"id":"99754f85-9920-4262-93d5-9dd7f136b3fa","block_type":"box","text":"portion of its holdings, as a duration management technique, to protect against an increase in the price","page_number":118,"box":{"x":117,"y":704,"width":762,"height":12}},{"id":"c10633fa-2027-4c65-b69f-a02c188cc5f6","block_type":"box","text":"of securities a Fund anticipates purchasing at a later date, or for speculation to increase returns.","page_number":118,"box":{"x":116,"y":720,"width":712,"height":12}},{"id":"ba32383d-ea2a-4d5d-96e0-b35e281d994f","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted","page_number":118,"box":{"x":117,"y":752,"width":750,"height":12}},{"id":"1bc9ca06-535e-4ffe-ba9b-5c941bce2ea0","block_type":"box","text":"for clearing to regulated clearinghouses. See “—Regulation of Derivatives—Dodd-Frank Regulations”","page_number":118,"box":{"x":116,"y":767,"width":752,"height":13}},{"id":"a961020d-dca8-4be1-91f3-22e47dce55ce","block_type":"box","text":"above. Other interest rate swaps are permitted, although not required, to be cleared. Most of the","page_number":118,"box":{"x":116,"y":783,"width":715,"height":12}},{"id":"f17912af-bff5-48de-adbd-3f08dce0a980","block_type":"box","text":"interest rate swaps entered into by the Funds are cleared. The Funds face counterparty risk with","page_number":118,"box":{"x":117,"y":798,"width":714,"height":13}},{"id":"babbd266-3929-4950-8d48-714a4da2b991","block_type":"box","text":"respect to the clearinghouse when entering into cleared interest rate swaps.","page_number":118,"box":{"x":117,"y":814,"width":561,"height":12}},{"id":"7fc84312-31be-449c-af05-4470cd989e3a","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest","page_number":118,"box":{"x":116,"y":846,"width":764,"height":12}},{"id":"6b30871b-3c1a-4936-94e6-623d9d6db6fe","block_type":"box","text":"rate swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared","page_number":118,"box":{"x":117,"y":862,"width":719,"height":12}},{"id":"87466963-346f-444b-978a-6724ac1fe248","block_type":"box","text":"interest rate derivatives transactions are swap dealers and other creditworthy entities that have","page_number":118,"box":{"x":117,"y":878,"width":709,"height":11}},{"id":"55924246-9ff7-40ea-b370-3d6738e4b3d8","block_type":"box","text":"II-24","page_number":118,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"bc434aa0-42a6-4d07-b18b-4c6712d953cb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":118,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e1c42e77-0f21-4a5b-8b1e-03ef408c5f9a","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support.","page_number":119,"box":{"x":116,"y":87,"width":746,"height":12}},{"id":"345747f6-062f-4c57-a117-bc637972ca04","block_type":"box","text":"If the Fund’s counterparty defaults on such a transaction, a Fund will have contractual remedies with","page_number":119,"box":{"x":117,"y":102,"width":749,"height":13}},{"id":"c7c49a92-f566-4266-8763-c8638318fa40","block_type":"box","text":"respect to the transaction, but there can be no guarantee that the Fund will be successful in enforcing","page_number":119,"box":{"x":117,"y":118,"width":758,"height":12}},{"id":"69f859de-cd22-41a6-a9c7-0675a536f576","block_type":"box","text":"such remedies. The market for interest rate swaps is relatively liquid in comparison with other similar","page_number":119,"box":{"x":116,"y":134,"width":751,"height":12}},{"id":"2c355481-e47a-4d21-a009-69c31f5e567a","block_type":"box","text":"instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":119,"box":{"x":117,"y":149,"width":732,"height":12}},{"id":"4c7103fb-9fb8-4870-ba97-72707ee4df3a","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":119,"box":{"x":117,"y":165,"width":503,"height":11}},{"id":"7427cd7b-022a-4f13-9dc6-db2ab0e582e4","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a","page_number":119,"box":{"x":117,"y":196,"width":762,"height":12}},{"id":"049381bb-ac80-471d-adc4-cfbfca6bf5d0","block_type":"box","text":"fixed or variable interest rate, index or asset in return for periodic payments from its counterparty based","page_number":119,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"02ef9aa1-9971-473f-9b20-ecf3670c4f93","block_type":"box","text":"on a different fixed or variable interest rate, index or asset.","page_number":119,"box":{"x":116,"y":227,"width":439,"height":11}},{"id":"a6f605d9-9004-4736-8f78-88db2e77992d","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls","page_number":119,"box":{"x":116,"y":258,"width":746,"height":11}},{"id":"514725ff-3668-48a2-bb4c-1bd46b068655","block_type":"box","text":"below a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":119,"box":{"x":117,"y":273,"width":736,"height":12}},{"id":"d5061cfc-a1b9-46ef-bdc8-5a01785ccad6","block_type":"box","text":"from the party selling such interest rate floor.","page_number":119,"box":{"x":116,"y":289,"width":337,"height":12}},{"id":"4487ce4f-49f9-4e2e-abcf-ff3febc042e0","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises","page_number":119,"box":{"x":116,"y":320,"width":746,"height":12}},{"id":"de1c4fcb-491b-4362-88e6-c6ca1eab9c50","block_type":"box","text":"above a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":119,"box":{"x":116,"y":335,"width":739,"height":12}},{"id":"ecd1f3df-640e-49d7-872e-c3c39dc6c6a0","block_type":"box","text":"from the party selling such interest rate cap.","page_number":119,"box":{"x":116,"y":351,"width":331,"height":12}},{"id":"08931839-5c8d-490e-8366-7829c78d3fea","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":119,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"ebc68a4e-96e5-4b58-b46f-a2c3eb5aaa1b","block_type":"box","text":"commitments to pay or receive interest,","page_number":119,"box":{"x":116,"y":397,"width":298,"height":12}},{"id":"005c2968-24e6-4bc6-88c8-c38124c35fcc","block_type":"box","text":"e.g.","page_number":119,"box":{"x":415,"y":400,"width":26,"height":9}},{"id":"6ba3660c-1a8e-4954-9d5a-41d2ef0230d3","block_type":"box","text":", an exchange of fixed rate payments for floating rate","page_number":119,"box":{"x":444,"y":397,"width":396,"height":12}},{"id":"cc0910d4-bb49-4d30-955c-a881db360b2f","block_type":"box","text":"payments. For example, if a Fund holds a mortgage-backed security with an interest rate that is reset","page_number":119,"box":{"x":117,"y":413,"width":755,"height":12}},{"id":"9251b8f2-9b82-4ccf-805a-1767c69345ac","block_type":"box","text":"only once each year, it may swap the right to receive interest at this fixed rate for the right to receive","page_number":119,"box":{"x":116,"y":428,"width":748,"height":12}},{"id":"4b3d5461-85ee-483a-9be7-c1169535eea9","block_type":"box","text":"interest at a rate that is reset every week. This would enable a Fund to offset a decline in the value of","page_number":119,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"c6504ce6-bba3-446e-83fd-bf6fce5c63a4","block_type":"box","text":"the mortgage-backed security due to rising interest rates but would also limit its ability to benefit from","page_number":119,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"9140d35e-9d72-4aae-b0b8-f2571c490ab9","block_type":"box","text":"falling interest rates. Conversely, if a Fund holds a mortgage-backed security with an interest rate that","page_number":119,"box":{"x":116,"y":475,"width":761,"height":12}},{"id":"4e73c854-0784-480d-9c03-05bdd8973bcd","block_type":"box","text":"is reset every week and it would like to lock in what","page_number":119,"box":{"x":117,"y":490,"width":383,"height":12}},{"id":"0359db0d-a654-46e7-863b-dea55d069049","block_type":"box","text":"it believes to be a high interest rate for one year, it","page_number":119,"box":{"x":501,"y":490,"width":377,"height":12}},{"id":"711fd779-4ee4-4bad-9d70-b1d2732e2879","block_type":"box","text":"may swap the right to receive interest at this variable weekly rate for the right to receive interest at a","page_number":119,"box":{"x":117,"y":506,"width":746,"height":12}},{"id":"8f151cbe-be3b-4e9e-b5d9-d7f6e15c607a","block_type":"box","text":"rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to","page_number":119,"box":{"x":117,"y":521,"width":733,"height":12}},{"id":"0783aac1-bcf3-4d3f-8622-82ef29aa3aa0","block_type":"box","text":"falling interest rates and may permit the Fund to enhance its income through the positive differential","page_number":119,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"8fe53d4e-3e7d-4cd5-9b3d-39e2a8d2a8f3","block_type":"box","text":"between one week and one year interest rates, but would preclude it from taking full advantage of","page_number":119,"box":{"x":117,"y":552,"width":729,"height":12}},{"id":"95de1cd0-6d92-4877-aa4f-5d11c7a1eb00","block_type":"box","text":"rising interest rates.","page_number":119,"box":{"x":117,"y":568,"width":150,"height":12}},{"id":"a851106f-5ccb-4204-a839-6392728c59fe","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary","page_number":119,"box":{"x":117,"y":599,"width":746,"height":12}},{"id":"2e26a8a5-2019-479a-902c-974434754ac5","block_type":"box","text":"income or, in certain circumstances, as long term capital gains to shareholders.","page_number":119,"box":{"x":117,"y":614,"width":593,"height":12}},{"id":"d9780796-8c3d-4069-8375-233cc3e49d41","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk,","page_number":119,"box":{"x":117,"y":645,"width":751,"height":12}},{"id":"f44bf992-2c8e-4d9e-b485-3a721b462d31","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":119,"box":{"x":117,"y":661,"width":538,"height":12}},{"id":"73465389-432d-4bdf-9472-8f13a6a62141","block_type":"box","text":"Total Return Swaps.","page_number":119,"box":{"x":118,"y":692,"width":148,"height":12}},{"id":"3609c990-a46a-45e6-879d-27c48c7221e7","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic","page_number":119,"box":{"x":273,"y":692,"width":565,"height":12}},{"id":"62a9798f-b531-4147-b339-40d2f56a4e09","block_type":"box","text":"payments to the other party based on the return of the assets underlying the contract in exchange for","page_number":119,"box":{"x":117,"y":707,"width":750,"height":12}},{"id":"c18d1c5a-2887-429e-ae10-463c90807895","block_type":"box","text":"periodic payments based on a fixed or variable interest rate or the total return from different underlying","page_number":119,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"32035d90-dece-4f13-992e-b475f5affdc0","block_type":"box","text":"assets. The return of the assets underlying the contract includes both the income generated by the","page_number":119,"box":{"x":116,"y":738,"width":732,"height":12}},{"id":"8d55a4b7-0bbd-4dd5-9a81-d5caf18f5afb","block_type":"box","text":"asset and the change in market value of the asset. The asset underlying the contract may include a","page_number":119,"box":{"x":116,"y":754,"width":737,"height":12}},{"id":"91d07361-27c0-4883-a212-ee8557ffc9d2","block_type":"box","text":"specified security, basket of securities or securities indices. Total return swaps on a specified security,","page_number":119,"box":{"x":116,"y":769,"width":757,"height":12}},{"id":"c79eed2a-0f90-4886-8dda-32e5c11cc0ca","block_type":"box","text":"basket of securities or securities indices may sometimes be referred to as “contracts for difference.”","page_number":119,"box":{"x":117,"y":785,"width":738,"height":12}},{"id":"6f28c389-d459-4923-aea5-67811d956274","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking","page_number":119,"box":{"x":116,"y":816,"width":738,"height":12}},{"id":"2ebf4e57-8d34-48fb-b814-4c5eb79e073e","block_type":"box","text":"physical custody of such security or investing directly in such market. Upon entering into a total return","page_number":119,"box":{"x":117,"y":831,"width":758,"height":12}},{"id":"aa346b37-0011-46bf-b678-c7e1402998a6","block_type":"box","text":"swap, a Fund is required to deposit initial margin but the parties do not exchange the notional amount.","page_number":119,"box":{"x":116,"y":847,"width":763,"height":12}},{"id":"6cb93b9b-7a8a-44d3-bd51-69114a00e669","block_type":"box","text":"As a result, total return swaps may effectively add leverage to the Fund’s portfolio because the Fund","page_number":119,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"92c88728-da7f-4c03-ba1c-8709dd36e3c9","block_type":"box","text":"would be subject to investment exposure on the notional amount of the swap.","page_number":119,"box":{"x":116,"y":878,"width":580,"height":12}},{"id":"39de091d-3339-4680-8265-faf99c507cc0","block_type":"box","text":"II-25","page_number":119,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ec73ba4a-188e-4336-b101-a677b8c271dc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":119,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f44836fa-b03b-4819-97dc-89d8beca36bd","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk","page_number":120,"box":{"x":116,"y":87,"width":743,"height":12}},{"id":"e11d94a5-c83a-4bbb-904d-605709480601","block_type":"box","text":"and counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":120,"box":{"x":116,"y":102,"width":488,"height":13}},{"id":"4d7252bc-3ed9-4fef-ab62-305156ee7709","block_type":"box","text":"Options","page_number":120,"box":{"x":117,"y":143,"width":57,"height":12}},{"id":"7e9fde26-779d-4701-b549-95be709206e0","block_type":"box","text":".","page_number":120,"box":{"x":175,"y":151,"width":8,"height":1}},{"id":"408eda63-27a7-4a09-b27f-5b5f433d543d","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":120,"box":{"x":117,"y":175,"width":337,"height":12}},{"id":"dc4524cb-00ba-49b5-a67b-d3b089748964","block_type":"box","text":"A Fund may engage in transactions in options on","page_number":120,"box":{"x":454,"y":175,"width":370,"height":12}},{"id":"787a8ec9-f6a3-4def-a718-3d49e26f5824","block_type":"box","text":"individual securities, baskets of securities or securities indices, or particular measurements of value or","page_number":120,"box":{"x":117,"y":191,"width":761,"height":12}},{"id":"1a997dc4-14fc-45b6-9f54-ec5cc4fb8399","block_type":"box","text":"rates, such as an index of the price of treasury securities or an index representative of short-term","page_number":120,"box":{"x":117,"y":206,"width":724,"height":12}},{"id":"3499de49-e1a0-46e2-885d-c9ffb558f8e7","block_type":"box","text":"interest rates. Such investments may be made on exchanges and in the OTC markets. In general,","page_number":120,"box":{"x":117,"y":222,"width":732,"height":12}},{"id":"37ce1dac-39b5-4f11-baef-c3a538135bab","block_type":"box","text":"exchange-traded options have standardized exercise prices and expiration dates and require the","page_number":120,"box":{"x":116,"y":237,"width":723,"height":12}},{"id":"343e119b-a341-40ca-9f9b-446aac82738b","block_type":"box","text":"parties to post margin against their obligations, and the performance of the parties’ obligations in","page_number":120,"box":{"x":117,"y":253,"width":720,"height":12}},{"id":"f116e249-e370-49d7-ac38-963974d6f0b4","block_type":"box","text":"connection with such options is guaranteed by the exchange or a related clearing corporation. OTC","page_number":120,"box":{"x":116,"y":268,"width":742,"height":12}},{"id":"9b18febc-15d1-4c67-ac02-0afacc0bc147","block_type":"box","text":"options have more flexible terms negotiated between the buyer and the seller, but are subject to","page_number":120,"box":{"x":116,"y":284,"width":717,"height":12}},{"id":"703c8df4-ad68-4ddf-93f6-88d15c91920d","block_type":"box","text":"greater credit risk. OTC options also involve greater illiquidity risk.","page_number":120,"box":{"x":116,"y":299,"width":493,"height":12}},{"id":"38e38dde-edee-4b76-b006-9b2160af04a9","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in","page_number":120,"box":{"x":116,"y":331,"width":709,"height":12}},{"id":"8b68e1ae-e77b-4e64-89e8-a97726f0efb9","block_type":"box","text":"different payment structures and/or expirations (commonly referred to as exotic options). For example,","page_number":120,"box":{"x":116,"y":347,"width":765,"height":12}},{"id":"6fde2d59-c00a-4883-bcda-b050000f618e","block_type":"box","text":"barrier options are exotic options that can only be exercised (or automatically expire) if the price of the","page_number":120,"box":{"x":117,"y":362,"width":761,"height":12}},{"id":"2b39f05b-be4b-41b4-8137-6b7e9a68080a","block_type":"box","text":"underlying asset reaches one or more predetermined levels on or before expiration. Binary options are","page_number":120,"box":{"x":117,"y":378,"width":765,"height":12}},{"id":"47452cc5-cd3d-4a25-bf88-2b8333a661fa","block_type":"box","text":"another example of exotic options which have a fixed all-or-nothing payout if one or more","page_number":120,"box":{"x":116,"y":393,"width":666,"height":12}},{"id":"67df1ae1-40f2-4ac4-9c45-9d9576c4ffa5","block_type":"box","text":"predetermined conditions are met. Exotic options are typically traded in OTC markets.","page_number":120,"box":{"x":117,"y":409,"width":641,"height":12}},{"id":"ec1f4810-bc0e-45ec-ac5d-9d2921038453","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example,","page_number":120,"box":{"x":116,"y":441,"width":770,"height":12}},{"id":"341b3626-a33a-42f4-a754-d5bdccd7a989","block_type":"box","text":"there are significant differences between the securities and options markets that could result in an","page_number":120,"box":{"x":116,"y":457,"width":731,"height":12}},{"id":"0ff9ebc3-0a2a-4fbc-9ae3-8351ecae6c7c","block_type":"box","text":"imperfect correlation between these markets, causing a given transaction not to achieve its objectives.","page_number":120,"box":{"x":117,"y":472,"width":763,"height":12}},{"id":"663b6820-ae96-41df-baad-816b79305dde","block_type":"box","text":"In addition, a liquid market for particular options, whether traded OTC or on a national securities","page_number":120,"box":{"x":117,"y":488,"width":716,"height":12}},{"id":"9c984941-521b-49fb-ba8e-af3cc7a6e9a1","block_type":"box","text":"exchange (“Exchange”) may be absent for reasons which include the following: there may be","page_number":120,"box":{"x":116,"y":503,"width":695,"height":12}},{"id":"96f4fcb9-a317-4e17-9b42-cf36ba286363","block_type":"box","text":"insufficient trading interest in certain options; restrictions may be imposed by an Exchange on opening","page_number":120,"box":{"x":117,"y":519,"width":763,"height":12}},{"id":"a0e54101-6067-42b7-8e25-5079fd44d340","block_type":"box","text":"transactions or closing transactions or both; trading halts, suspensions or other restrictions may be","page_number":120,"box":{"x":116,"y":534,"width":737,"height":12}},{"id":"eb63e417-de88-4498-9f60-b77ce68a9e3a","block_type":"box","text":"imposed with respect to particular classes or series of options or underlying securities; unusual or","page_number":120,"box":{"x":117,"y":550,"width":727,"height":12}},{"id":"6822f10c-4d5f-4cfa-9c15-b07d85be9353","block_type":"box","text":"unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an","page_number":120,"box":{"x":117,"y":565,"width":708,"height":12}},{"id":"3446d5a4-2274-4c4b-8213-a0b3f797a81b","block_type":"box","text":"Exchange or the Options Clearing Corporation may not at all times be adequate to handle current","page_number":120,"box":{"x":117,"y":581,"width":728,"height":12}},{"id":"6ccb850e-3e77-427d-91a3-d09582e7421a","block_type":"box","text":"trading volume; or one or more Exchanges could, for economic or other reasons, decide or be","page_number":120,"box":{"x":116,"y":596,"width":703,"height":12}},{"id":"25dc94cc-cb78-4480-86da-1a3db97eeb44","block_type":"box","text":"compelled at some future date to discontinue the trading of options (or a particular class or series of","page_number":120,"box":{"x":116,"y":612,"width":746,"height":12}},{"id":"213ccd0f-0e33-42ff-8668-8214ffd0301d","block_type":"box","text":"options), in which event the market on that Exchange (or in that class or series of options) would cease","page_number":120,"box":{"x":116,"y":627,"width":770,"height":12}},{"id":"13ca72c7-9744-4b0a-b633-dcbb6956297f","block_type":"box","text":"to exist, although outstanding options that had been issued by the Options Clearing Corporation as a","page_number":120,"box":{"x":116,"y":643,"width":753,"height":12}},{"id":"ae185aa0-26ef-47ca-91a1-505b85c75c0a","block_type":"box","text":"result of trades on that Exchange would continue to be exercisable in accordance with their terms.","page_number":120,"box":{"x":117,"y":658,"width":732,"height":12}},{"id":"ef329e67-c0d2-4ad1-97e4-ed8938a5b7e9","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or","page_number":120,"box":{"x":117,"y":690,"width":745,"height":12}},{"id":"3a79a8aa-1347-4e53-8193-cc7f6938edc6","block_type":"box","text":"put options on the same asset that may be bought or written by a single investor, whether acting alone","page_number":120,"box":{"x":117,"y":706,"width":759,"height":12}},{"id":"72fd0c52-cf90-4975-b8fc-0b6fb32060d0","block_type":"box","text":"or in concert with others (regardless of whether such options are written on the same or different","page_number":120,"box":{"x":116,"y":721,"width":716,"height":12}},{"id":"9ccac06e-590c-4e38-ad3b-30c82f5eefd7","block_type":"box","text":"exchanges or are held or written on one or more accounts or through one or more brokers). Under","page_number":120,"box":{"x":116,"y":737,"width":730,"height":12}},{"id":"f90c7f99-5583-45c9-ab04-b87dbf05f455","block_type":"box","text":"these limitations, option positions of all investment companies advised by the Manager are combined","page_number":120,"box":{"x":116,"y":752,"width":749,"height":12}},{"id":"845b8074-b630-4aae-9fbf-250a032ab098","block_type":"box","text":"for purposes of these limits. Pursuant to these limitations, an exchange may order the liquidation of","page_number":120,"box":{"x":116,"y":768,"width":736,"height":12}},{"id":"06abc3ce-e8f3-4738-81d0-c38b18e8b958","block_type":"box","text":"positions and may impose other sanctions or restrictions. These position limits may restrict the number","page_number":120,"box":{"x":117,"y":783,"width":762,"height":12}},{"id":"51b0957f-c4f1-444c-9b5d-b6e970620461","block_type":"box","text":"of listed options that a Fund may buy or sell.","page_number":120,"box":{"x":116,"y":799,"width":328,"height":12}},{"id":"808489ae-cc91-434d-af43-13568e850acc","block_type":"box","text":"Call Options.","page_number":120,"box":{"x":117,"y":831,"width":100,"height":12}},{"id":"0fa55f41-2aae-47ce-95b2-1b8319c23bfa","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in","page_number":120,"box":{"x":217,"y":831,"width":629,"height":12}},{"id":"1ec7e060-aaed-4b4b-a5f9-0cb4cc4f57c2","block_type":"box","text":"which it may invest. A purchased call option gives a Fund the right to buy, and obligates the seller to","page_number":120,"box":{"x":116,"y":847,"width":748,"height":12}},{"id":"62cb204b-a1e7-4c17-ad2f-a6e1af480ea0","block_type":"box","text":"sell, the underlying security at the exercise price at any time during the option period. A Fund also may","page_number":120,"box":{"x":116,"y":862,"width":767,"height":12}},{"id":"b7b0ca41-14f3-473d-95c7-bae5638da7c0","block_type":"box","text":"purchase and sell call options on indices. Index options are similar to options on securities except that,","page_number":120,"box":{"x":117,"y":878,"width":765,"height":11}},{"id":"454ea698-5275-4d15-b8ba-1111b2258fe0","block_type":"box","text":"II-26","page_number":120,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4adbe8bc-c866-4c4d-b0e6-1fc37af94060","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":120,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d6d081e0-1143-44f3-99b1-be0d685efabc","block_type":"box","text":"rather than taking or making delivery of securities underlying the option at a specified price upon","page_number":121,"box":{"x":117,"y":87,"width":718,"height":12}},{"id":"cf5d7609-f69d-4942-802c-2c8ce6997848","block_type":"box","text":"exercise, an index option gives the holder the right to receive cash upon exercise of the option if the","page_number":121,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"d3c7c63b-0de2-4902-9fb2-e14d3cfe08b3","block_type":"box","text":"level of the index upon which the option is based is greater than the exercise price of the option.","page_number":121,"box":{"x":117,"y":118,"width":716,"height":12}},{"id":"65c08aea-4f79-461b-956e-36cc77dbe777","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","page_number":121,"box":{"x":116,"y":146,"width":750,"height":12}},{"id":"b1095df9-1ae9-4984-aa05-fff5ccf1b36a","block_type":"box","text":"where the exercise price of the call held is (i) equal to or less than the exercise price of the call written,","page_number":121,"box":{"x":116,"y":161,"width":765,"height":13}},{"id":"1176835c-6736-4ace-bb5f-342e8b5e4692","block_type":"box","text":"or (ii) greater than the exercise price of the call written provided the difference is maintained by the","page_number":121,"box":{"x":116,"y":177,"width":736,"height":12}},{"id":"7806f7b7-9b8c-4f8b-a8c5-c024bccb1d6f","block_type":"box","text":"Fund in assets which are not considered illiquid investments under the Funds’ Liquidity Program (as","page_number":121,"box":{"x":117,"y":192,"width":745,"height":13}},{"id":"52b59e33-6e93-4fd5-80fd-e43cb6aa132f","block_type":"box","text":"defined below) (“liquid assets”) designated on the Manager’s or the sub-adviser’s books and records to","page_number":121,"box":{"x":116,"y":208,"width":769,"height":12}},{"id":"43320c7f-24dc-474a-8097-aea0d831f03f","block_type":"box","text":"the extent required by Commission guidelines.","page_number":121,"box":{"x":116,"y":223,"width":350,"height":13}},{"id":"b47972b3-9192-44e3-b4d1-1f047223bd2e","block_type":"box","text":"A Fund may write (","page_number":121,"box":{"x":116,"y":251,"width":140,"height":12}},{"id":"7816f713-6b81-43ee-8488-1d94c3b49974","block_type":"box","text":"i.e.","page_number":121,"box":{"x":257,"y":251,"width":21,"height":10}},{"id":"1a323c0a-eebf-4396-94ea-f6895dc75c6e","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest","page_number":121,"box":{"x":281,"y":251,"width":599,"height":12}},{"id":"7a7db815-602b-4f7e-b868-4ef9d2eeb532","block_type":"box","text":"and to enter into closing purchase transactions with respect to certain of such options. A covered call","page_number":121,"box":{"x":116,"y":267,"width":754,"height":12}},{"id":"2c96fbd1-2270-4635-b2a5-3a60ccfd3aac","block_type":"box","text":"option is an option in which a Fund, in return for a premium, gives another party a right to buy specified","page_number":121,"box":{"x":116,"y":282,"width":769,"height":12}},{"id":"018627d9-583e-4fc1-a41f-5237ddda8349","block_type":"box","text":"securities owned by the Fund at a specified future date and price set at the time of the contract. The","page_number":121,"box":{"x":116,"y":298,"width":747,"height":12}},{"id":"4505c733-324e-44a3-8efb-ef997a3dabca","block_type":"box","text":"principal reason for writing call options is the attempt to realize, through the receipt of premiums, a","page_number":121,"box":{"x":117,"y":313,"width":733,"height":12}},{"id":"ae2e292e-d435-434b-a96f-92bf2dbbde61","block_type":"box","text":"greater return than would be realized on the securities alone. By writing covered call options, a Fund","page_number":121,"box":{"x":116,"y":329,"width":750,"height":12}},{"id":"ed760052-a791-4b1f-b2c5-99e6a6b71e45","block_type":"box","text":"gives up the opportunity, while the option is in effect, to profit from any price increase in the underlying","page_number":121,"box":{"x":116,"y":344,"width":763,"height":12}},{"id":"64c72f1a-8bd8-48d1-aaa2-9a0a63da531d","block_type":"box","text":"security above the option exercise price. In addition, a Fund’s ability to sell the underlying security will","page_number":121,"box":{"x":116,"y":360,"width":758,"height":12}},{"id":"386c333a-542e-4d8d-b996-d0272c661c7b","block_type":"box","text":"be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":121,"box":{"x":117,"y":375,"width":738,"height":12}},{"id":"56e419a0-572f-4cca-85eb-e23794424d69","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an","page_number":121,"box":{"x":116,"y":391,"width":748,"height":12}},{"id":"46daa63e-a965-4ff7-bd47-098083c00e2e","block_type":"box","text":"offsetting purchase of an identical option prior to the expiration of the option it has written. Covered call","page_number":121,"box":{"x":116,"y":406,"width":768,"height":12}},{"id":"d0619b6f-b3a1-4408-8e07-317c7fec0171","block_type":"box","text":"options also serve as a partial hedge to the extent of the premium received against the price of the","page_number":121,"box":{"x":116,"y":422,"width":736,"height":12}},{"id":"48dbe434-b364-443d-8417-46f6f9c35366","block_type":"box","text":"underlying security declining.","page_number":121,"box":{"x":117,"y":438,"width":219,"height":11}},{"id":"432cdff2-b0fc-48f7-8270-72d583e9487c","block_type":"box","text":"A Fund may write (","page_number":121,"box":{"x":116,"y":465,"width":140,"height":12}},{"id":"e4cc7cab-7953-472c-9969-0369bd653fea","block_type":"box","text":"i.e.","page_number":121,"box":{"x":257,"y":465,"width":21,"height":10}},{"id":"e55a4a61-ee67-4180-8a54-3780b9bcbfed","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest","page_number":121,"box":{"x":281,"y":465,"width":590,"height":12}},{"id":"175ec9bd-f699-4c32-befa-0697fb96e466","block_type":"box","text":"but that are not currently held by the Fund. The principal reason for writing uncovered call options is to","page_number":121,"box":{"x":117,"y":481,"width":763,"height":12}},{"id":"00322ba9-e1d5-40b7-baf9-0477fab3e1c3","block_type":"box","text":"realize income without committing capital to the ownership of the underlying securities or instruments.","page_number":121,"box":{"x":117,"y":496,"width":758,"height":12}},{"id":"01b513b8-5424-44d2-8bb2-938e13ca1d92","block_type":"box","text":"When writing uncovered call options, a Fund must deposit and maintain sufficient margin with the","page_number":121,"box":{"x":116,"y":512,"width":727,"height":12}},{"id":"63b58a49-894f-459f-aa90-41e2816c6a86","block_type":"box","text":"broker-dealer through which it made the uncovered call option as collateral to ensure that the securities","page_number":121,"box":{"x":117,"y":527,"width":771,"height":12}},{"id":"113b39a8-562d-4d71-9e10-485b1d1c4a25","block_type":"box","text":"can be purchased for delivery if and when the option is exercised. During periods of declining","page_number":121,"box":{"x":116,"y":543,"width":697,"height":12}},{"id":"9c158cff-4875-4d6b-8d84-0a35bf49dec9","block_type":"box","text":"securities prices or when prices are stable, writing uncovered calls can be a profitable strategy to","page_number":121,"box":{"x":116,"y":558,"width":724,"height":12}},{"id":"36b783cc-4717-4f00-b1c6-0d25e88d75de","block_type":"box","text":"increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls","page_number":121,"box":{"x":117,"y":574,"width":724,"height":12}},{"id":"74d351c6-ace7-461d-93ef-07ba3f7298f1","block_type":"box","text":"because there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls","page_number":121,"box":{"x":117,"y":589,"width":771,"height":12}},{"id":"3ba02393-4c50-4d55-b387-34bbb042ec9c","block_type":"box","text":"have speculative characteristics and the potential for loss is unlimited. When an uncovered call is","page_number":121,"box":{"x":117,"y":605,"width":725,"height":12}},{"id":"8cf6b59d-947a-4d33-8a3a-11493acd2d94","block_type":"box","text":"exercised, a Fund must purchase the underlying security to meet its call obligation. There is also a risk,","page_number":121,"box":{"x":116,"y":620,"width":771,"height":12}},{"id":"21711ade-f398-463b-b53a-1af7b08b9e64","block_type":"box","text":"especially with preferred and debt securities that lack sufficient liquidity, that the securities may not be","page_number":121,"box":{"x":116,"y":636,"width":760,"height":12}},{"id":"a6fcaebc-61f9-4dfd-843b-0376124e4e11","block_type":"box","text":"available for purchase. If the purchase price exceeds the exercise price, a Fund will lose the difference.","page_number":121,"box":{"x":116,"y":651,"width":772,"height":12}},{"id":"a936be2d-e0d6-45cf-be11-84b0de216bcd","block_type":"box","text":"Put Options.","page_number":121,"box":{"x":116,"y":679,"width":91,"height":12}},{"id":"07dff9a3-b2a5-4d41-9f64-5e8423650d59","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its","page_number":121,"box":{"x":213,"y":679,"width":642,"height":12}},{"id":"e28dfaa0-afcf-44d4-a85b-76d2adc5085d","block_type":"box","text":"securities or to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying","page_number":121,"box":{"x":116,"y":695,"width":764,"height":12}},{"id":"09a4740c-e5a1-49ca-b6da-9bf0402b5cb8","block_type":"box","text":"securities or instruments at the exercise price, thus limiting the Fund’s risk of loss through a decline in","page_number":121,"box":{"x":116,"y":710,"width":754,"height":12}},{"id":"06763fbe-35eb-490c-b27f-28a16884d3c3","block_type":"box","text":"the market value of the securities or instruments until the put option expires. The amount of any","page_number":121,"box":{"x":116,"y":726,"width":709,"height":12}},{"id":"fcc0cc32-d4e8-4ee1-8fd7-f26273013aed","block_type":"box","text":"appreciation in the value of the underlying securities or instruments will be partially offset by the","page_number":121,"box":{"x":116,"y":741,"width":708,"height":12}},{"id":"b5f22377-8b9b-43c8-bbad-917be51a5aad","block_type":"box","text":"amount of the premium paid for the put option and any related transaction costs. Prior to its expiration,","page_number":121,"box":{"x":116,"y":757,"width":758,"height":12}},{"id":"3fb6b546-adca-41ce-8acb-9c2e5a8a62b1","block_type":"box","text":"a put option may be sold in a closing sale transaction and profit or loss from the sale will depend on","page_number":121,"box":{"x":116,"y":772,"width":737,"height":12}},{"id":"5e719497-a043-4a73-bc29-cf51dd024efe","block_type":"box","text":"whether the amount received is more or less than the premium paid for the put option plus the related","page_number":121,"box":{"x":116,"y":788,"width":753,"height":12}},{"id":"44a2dc9f-d04e-4950-bb5c-fc5980fe9cb3","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an","page_number":121,"box":{"x":116,"y":803,"width":719,"height":12}},{"id":"4e1e4979-3609-4e32-b271-0e3b300fefe8","block_type":"box","text":"option by means of an offsetting sale of an identical option prior to the expiration of the option it has","page_number":121,"box":{"x":116,"y":819,"width":737,"height":12}},{"id":"abaf7f88-2c6b-4a0c-8b2a-d3b6758a685e","block_type":"box","text":"purchased. A Fund also may purchase uncovered put options.","page_number":121,"box":{"x":117,"y":834,"width":467,"height":12}},{"id":"65d78c12-6fb7-4975-be82-10fff2023ebd","block_type":"box","text":"A Fund also may write (","page_number":121,"box":{"x":116,"y":862,"width":176,"height":12}},{"id":"d4636516-3f53-472a-b48d-d8a2150370d3","block_type":"box","text":"i.e.","page_number":121,"box":{"x":293,"y":862,"width":20,"height":10}},{"id":"148cdddf-a37d-4e86-8e7f-2ab5a831c31a","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held","page_number":121,"box":{"x":316,"y":862,"width":563,"height":12}},{"id":"9943531d-1eba-4282-a502-b1edcf28da40","block_type":"box","text":"by the Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":121,"box":{"x":117,"y":878,"width":763,"height":12}},{"id":"8d1c8a7f-8393-438c-942a-4bdbd50fd3f6","block_type":"box","text":"II-27","page_number":121,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2a63de4c-7318-46cc-a5a7-1b7ffb79df62","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":121,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b679a809-989e-470b-9ce7-f77242a6afc1","block_type":"box","text":"A Fund also may write (","page_number":122,"box":{"x":116,"y":87,"width":176,"height":12}},{"id":"767cb563-35e3-4609-8e0f-f91c1e3c228d","block_type":"box","text":"i.e.","page_number":122,"box":{"x":293,"y":87,"width":20,"height":10}},{"id":"cc26af5d-67eb-48d8-95da-e762c4fbf12f","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may","page_number":122,"box":{"x":316,"y":87,"width":540,"height":12}},{"id":"eb25960a-3106-42e1-a7d5-4d93cd800acc","block_type":"box","text":"invest but with respect to which the Fund does not currently have a corresponding short position or has","page_number":122,"box":{"x":117,"y":103,"width":769,"height":12}},{"id":"1213ed9f-26a2-4a30-9ef2-b6eb7ac7f3f0","block_type":"box","text":"not deposited as collateral cash equal to the exercise value of the put option with the broker-dealer","page_number":122,"box":{"x":117,"y":118,"width":737,"height":12}},{"id":"31878d96-744b-4fbd-869a-96674fb5a8e1","block_type":"box","text":"through which it made the uncovered put option. The principal reason for writing uncovered put options","page_number":122,"box":{"x":116,"y":134,"width":769,"height":12}},{"id":"178af7a7-d883-4c93-a4ff-41667c4b75c4","block_type":"box","text":"is to receive premium income and to acquire such securities or instruments at a net cost below the","page_number":122,"box":{"x":117,"y":149,"width":734,"height":12}},{"id":"94df17e4-2eee-463c-8cdc-7c84d28582d8","block_type":"box","text":"current market value. A Fund has the obligation to buy the securities or instruments at an agreed upon","page_number":122,"box":{"x":116,"y":165,"width":765,"height":12}},{"id":"5691316e-6757-4186-81a8-374210cda886","block_type":"box","text":"price if the price of the securities or instruments decreases below the exercise price. If the price of the","page_number":122,"box":{"x":117,"y":180,"width":759,"height":12}},{"id":"72fc89e4-1fa0-47bd-89cd-0067af13999f","block_type":"box","text":"securities or instruments increases during the option period, the option will expire worthless and a","page_number":122,"box":{"x":116,"y":196,"width":729,"height":12}},{"id":"b14cb42d-5642-4f9b-9299-222f1cceec22","block_type":"box","text":"Fund will retain the premium and will not have to purchase the securities or instruments at the exercise","page_number":122,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"ce3bd8b4-aafd-4e4a-bc38-594a8b445558","block_type":"box","text":"price.","page_number":122,"box":{"x":117,"y":227,"width":45,"height":11}},{"id":"b41dab09-b15b-4949-a998-0ac8892a3a02","block_type":"box","text":"Options on Government National Mortgage Association (“GNMA”) Certificates.","page_number":122,"box":{"x":117,"y":258,"width":586,"height":12}},{"id":"4199fcd2-59d5-4094-b00d-da3cdf4d8324","block_type":"box","text":"The following","page_number":122,"box":{"x":704,"y":258,"width":103,"height":12}},{"id":"474c3bd1-75b6-42b7-9f4b-3b959330c3f6","block_type":"box","text":"information relates to the unique characteristics of options on GNMA Certificates. Since the remaining","page_number":122,"box":{"x":117,"y":273,"width":759,"height":12}},{"id":"9d8e861f-1e96-4e19-a0bf-8bf000af75bf","block_type":"box","text":"principal balance of GNMA Certificates declines each month as a result of mortgage payments, a","page_number":122,"box":{"x":117,"y":289,"width":725,"height":12}},{"id":"54cb44fb-824c-4cb6-8534-5d36bf3cca27","block_type":"box","text":"Fund, as a writer of a GNMA call holding GNMA Certificates as “cover” to satisfy its delivery obligation","page_number":122,"box":{"x":117,"y":304,"width":761,"height":12}},{"id":"5c4a9e06-ef5e-43fd-87b1-26cd31badf58","block_type":"box","text":"in the event of exercise, may find that the GNMA Certificates it holds no longer have a sufficient","page_number":122,"box":{"x":117,"y":320,"width":714,"height":12}},{"id":"32ac1b20-d884-4824-9c71-5ed8d10733cc","block_type":"box","text":"remaining principal balance for this purpose. Should this occur, a Fund will purchase additional GNMA","page_number":122,"box":{"x":117,"y":335,"width":763,"height":12}},{"id":"46a32fab-816b-48ed-ac8b-f3c1d1b60dd4","block_type":"box","text":"Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash market in order","page_number":122,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"a8054131-452f-4bd9-80ea-cc663fdee1dc","block_type":"box","text":"to maintain its “cover.”","page_number":122,"box":{"x":116,"y":366,"width":170,"height":10}},{"id":"1881d4ee-746e-495e-9525-639a63227462","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month","page_number":122,"box":{"x":116,"y":397,"width":764,"height":12}},{"id":"a0b0b0df-cdc2-4143-a1dd-0f912a8b86ea","block_type":"box","text":"may cease to represent cover for the option in the event of a decline in the GNMA coupon rate at","page_number":122,"box":{"x":117,"y":413,"width":724,"height":12}},{"id":"576a8d24-4f81-4b95-9fcd-a9481444adba","block_type":"box","text":"which new pools are originated under the FHA/VA loan ceiling in effect at any given time. If this should","page_number":122,"box":{"x":116,"y":428,"width":765,"height":12}},{"id":"fc62dcc3-6ac9-48ae-9be4-fe7e85e4ceae","block_type":"box","text":"occur, a Fund will no longer be covered, and the Fund will either enter into a closing purchase","page_number":122,"box":{"x":116,"y":444,"width":701,"height":12}},{"id":"ee2f8f1f-b3de-4fb2-814a-b864499a6c23","block_type":"box","text":"transaction or replace such Certificate with a certificate that represents cover. When a Fund closes its","page_number":122,"box":{"x":116,"y":459,"width":760,"height":12}},{"id":"6f69d23f-b2c7-4fcc-8193-776393d79aae","block_type":"box","text":"position or replaces such Certificate, it may realize an unanticipated loss and incur transaction costs.","page_number":122,"box":{"x":117,"y":475,"width":751,"height":12}},{"id":"4ca8a8cf-b61a-44d4-8a3b-156e0ebcf893","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":122,"box":{"x":117,"y":506,"width":243,"height":12}},{"id":"ea323846-0276-4b55-aa74-c06063ce0551","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to","page_number":122,"box":{"x":362,"y":506,"width":517,"height":12}},{"id":"2618feb5-7235-4d6a-9fac-e610199ff3c9","block_type":"box","text":"enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap","page_number":122,"box":{"x":116,"y":521,"width":750,"height":12}},{"id":"f54f5809-f82f-4a3d-912a-997f2eca2ccb","block_type":"box","text":"agreement, at a designated future time on specified terms. A Fund may write (","page_number":122,"box":{"x":116,"y":537,"width":580,"height":12}},{"id":"6739b57b-c187-401c-adb5-e4c2a0dce433","block_type":"box","text":"i.e.","page_number":122,"box":{"x":698,"y":537,"width":20,"height":9}},{"id":"b4cfb784-d149-4638-949e-d6301eddd668","block_type":"box","text":", sell) and purchase","page_number":122,"box":{"x":721,"y":537,"width":150,"height":12}},{"id":"6ab1fcd7-8d33-48c8-a53f-e8d5bd7b3d37","block_type":"box","text":"put and call swaptions. Depending on the terms of the particular option agreement, a Fund will","page_number":122,"box":{"x":117,"y":552,"width":704,"height":12}},{"id":"6264e213-9898-4adf-82a7-fcca9aeb5164","block_type":"box","text":"generally incur a greater degree of risk when it writes a swaption than it will incur when it purchases a","page_number":122,"box":{"x":116,"y":568,"width":758,"height":12}},{"id":"8cfdf748-db4a-4b8d-b9ac-63dff0f1f060","block_type":"box","text":"swaption. When a Fund purchases a swaption, it risks losing only the amount of the premium it has","page_number":122,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"a73fa97c-492f-458b-951b-63ee4e933092","block_type":"box","text":"paid should it decide to let the option expire unexercised. However, when a Fund writes a swaption,","page_number":122,"box":{"x":117,"y":599,"width":743,"height":12}},{"id":"42ccc5ce-825c-4c0b-bcb0-1bd4fe9e993f","block_type":"box","text":"upon exercise of the option the Fund will become obligated according to the terms of the underlying","page_number":122,"box":{"x":117,"y":614,"width":743,"height":12}},{"id":"c00c14d0-ef89-493d-9542-99417d764309","block_type":"box","text":"agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":122,"box":{"x":116,"y":630,"width":754,"height":12}},{"id":"4d30c422-d23a-40c4-823f-d7dca808d50c","block_type":"box","text":"required, to be cleared.","page_number":122,"box":{"x":117,"y":645,"width":177,"height":12}},{"id":"5ec44d97-4b77-4cc5-ba56-511dadc54355","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment","page_number":122,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"566d43d9-5930-43d1-8a84-5818ba9e6685","block_type":"box","text":"or portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates","page_number":122,"box":{"x":116,"y":692,"width":767,"height":12}},{"id":"f1006fd3-f8dc-4dbd-9d07-b2fcb1f0f7ce","block_type":"box","text":"purchasing at a later date. A Fund generally will use these transactions for hedging purposes, not for","page_number":122,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"e1a3f3bc-c1a2-403b-bfab-e29519fd39cb","block_type":"box","text":"speculation.","page_number":122,"box":{"x":116,"y":723,"width":88,"height":12}},{"id":"9c118603-d0ae-420b-b0c8-d6e5a53192ca","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “— Risk","page_number":122,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"32cc36a4-eb9a-4204-b93a-5eeb24c7b1e3","block_type":"box","text":"Factors in Derivatives” above.","page_number":122,"box":{"x":117,"y":769,"width":220,"height":10}},{"id":"8ac72395-3e34-49e5-8570-c267613405d4","block_type":"box","text":"FLEX Options.","page_number":122,"box":{"x":116,"y":800,"width":107,"height":12}},{"id":"fb23e36f-d524-4a6c-a637-a28ecf9bc302","block_type":"box","text":"FLEX Options are customized option contracts available through national securities","page_number":122,"box":{"x":231,"y":800,"width":617,"height":12}},{"id":"f548b59b-561d-4a6b-954f-dcf83704f84f","block_type":"box","text":"exchanges that are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX","page_number":122,"box":{"x":116,"y":816,"width":729,"height":12}},{"id":"7d20244e-df23-4861-b1e7-d75fae5ab528","block_type":"box","text":"Options are listed on a U.S. national securities exchange. FLEX Options provide investors with the","page_number":122,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"4dd6fb12-391d-4ce6-9b5a-55b210b6eb1e","block_type":"box","text":"ability to customize assets referenced by the options, exercise prices, exercise styles (i.e., American","page_number":122,"box":{"x":116,"y":847,"width":750,"height":12}},{"id":"6cbd6751-094a-48a8-9572-2c225d7cd5bc","block_type":"box","text":"style, exercisable any time prior to the expiration date, or European-style, exercisable only on the","page_number":122,"box":{"x":116,"y":862,"width":726,"height":12}},{"id":"41446345-6e4f-4620-b926-347252b7fa65","block_type":"box","text":"option expiration date) and expiration dates, while achieving price discovery in competitive, transparent","page_number":122,"box":{"x":116,"y":878,"width":769,"height":12}},{"id":"1e134a74-21e7-429a-8f4d-f420434479c5","block_type":"box","text":"II-28","page_number":122,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"99d9cad1-a2d1-4147-8c76-bdac7c1217cb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":122,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ee44f265-4916-4fc6-88ee-03a27e16471d","block_type":"box","text":"auctions markets and avoiding the counterparty exposure of OTC options positions. Each option","page_number":123,"box":{"x":116,"y":87,"width":719,"height":12}},{"id":"2dcd344a-6991-47dc-a342-a78ab39fa7a2","block_type":"box","text":"contract entitles the holder thereof to purchase (for the","page_number":123,"box":{"x":116,"y":102,"width":410,"height":13}},{"id":"1c43ced3-262c-4e61-8a8f-e9e97c784e90","block_type":"box","text":"call options) or sell (for the put options) shares","page_number":123,"box":{"x":527,"y":102,"width":349,"height":13}},{"id":"37bb416a-63d2-434d-9138-f77d76028d34","block_type":"box","text":"of the reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options,","page_number":123,"box":{"x":116,"y":118,"width":772,"height":12}},{"id":"87079d7a-1270-4b3f-874e-0e618a40e531","block_type":"box","text":"including both purchased and written put and call options (as further described below). The FLEX","page_number":123,"box":{"x":117,"y":134,"width":726,"height":12}},{"id":"32a8a9bf-92da-4cf8-8d30-73e687967b89","block_type":"box","text":"Options are all European style options, which means that they are exercisable at a predetermined","page_number":123,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"1bfac2a4-998e-4e6e-b44d-26e4e5ed8f14","block_type":"box","text":"specified price (the “strike price”) only on the FLEX Option’s expiration date.","page_number":123,"box":{"x":116,"y":165,"width":569,"height":12}},{"id":"aa4ce84a-d0bb-4db2-b6a7-bb21308047cf","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the","page_number":123,"box":{"x":116,"y":198,"width":752,"height":12}},{"id":"4ac48beb-4bf4-4032-a3a3-a2ec3c1fd588","block_type":"box","text":"“buyer for every seller and the seller for every buyer”, reducing counterparty risk for clearing members","page_number":123,"box":{"x":116,"y":213,"width":762,"height":12}},{"id":"6ee0197e-f908-45df-b9e2-cd70a1c8cf5e","block_type":"box","text":"and options traders. Although guaranteed for settlement by the OCC, FLEX Options are still subject to","page_number":123,"box":{"x":116,"y":229,"width":762,"height":12}},{"id":"47b75b1e-8da1-4db0-ab2f-2fbc4546b4e8","block_type":"box","text":"counterparty risk with the OCC and subject to the risk that the OCC may fail to perform the settlement","page_number":123,"box":{"x":116,"y":244,"width":760,"height":12}},{"id":"d00d5313-d6f3-4459-937e-2e6bcc26e4bd","block_type":"box","text":"of the FLEX Options due to bankruptcy or other adverse reasons. A Fund bears the risk that the OCC","page_number":123,"box":{"x":116,"y":260,"width":759,"height":12}},{"id":"08a7799f-2695-4278-8071-95f9097ecabd","block_type":"box","text":"will be unable or unwilling to perform its obligations under the FLEX Options contracts.","page_number":123,"box":{"x":116,"y":275,"width":646,"height":12}},{"id":"fc375c12-182d-481d-8f1d-5971f6929c03","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the","page_number":123,"box":{"x":116,"y":308,"width":744,"height":13}},{"id":"7c46ac79-076e-45c4-a528-3db4c80db886","block_type":"box","text":"FLEX Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and","page_number":123,"box":{"x":117,"y":324,"width":760,"height":12}},{"id":"2c33b98f-51c0-4bf6-8ef8-3dcb2d7fe49f","block_type":"box","text":"rules: certain stock dividends or distributions, stock splits, reverse stock splits, rights offerings,","page_number":123,"box":{"x":117,"y":339,"width":702,"height":13}},{"id":"2826684d-aab5-47d5-9d2c-ef98e1a1deaa","block_type":"box","text":"distributions, reorganizations, recapitalizations, or reclassifications with respect to an underlying","page_number":123,"box":{"x":116,"y":355,"width":715,"height":12}},{"id":"69fc0d36-7929-475a-9c75-fc46c8560162","block_type":"box","text":"security, or a merger, consolidation, dissolution or liquidation of the issuer of the underlying security.","page_number":123,"box":{"x":116,"y":370,"width":748,"height":13}},{"id":"98165243-ab59-493f-a553-5ebc78f7264d","block_type":"box","text":"According to the OCC’s by-laws, the nature and extent of any such adjustment is to be determined by","page_number":123,"box":{"x":116,"y":386,"width":759,"height":12}},{"id":"66d473c7-6d1d-4b6d-ae62-a5b5aff05b95","block_type":"box","text":"the OCC’s Securities Committee, in light of the circumstances known to it at the time such","page_number":123,"box":{"x":116,"y":401,"width":673,"height":13}},{"id":"022535b5-187b-4589-ba1b-069a4af80b7d","block_type":"box","text":"determination is made, based on its judgment as to what is appropriate for the protection of investors","page_number":123,"box":{"x":116,"y":417,"width":754,"height":12}},{"id":"9e1bd0a3-0996-47f4-b296-b70008fa7178","block_type":"box","text":"and the public interest, taking into account such factors as fairness to holders and writers (or","page_number":123,"box":{"x":116,"y":432,"width":691,"height":13}},{"id":"278cc981-525d-4e86-94ab-c9e516deec10","block_type":"box","text":"purchasers and sellers) of the affected options, the maintenance of a fair and orderly market in the","page_number":123,"box":{"x":117,"y":448,"width":734,"height":12}},{"id":"ff6a6b1c-c70a-48ce-95ea-7d98d12f8033","block_type":"box","text":"affected options, consistency of interpretation and practice, efficiency of exercise settlement","page_number":123,"box":{"x":116,"y":463,"width":687,"height":13}},{"id":"75148e65-aca9-49e9-b01b-9f8970c3e94e","block_type":"box","text":"procedures, and the coordination with other clearing agencies of the clearance and settlement of","page_number":123,"box":{"x":117,"y":479,"width":721,"height":12}},{"id":"3b589b54-675b-4136-a019-af8203f66fad","block_type":"box","text":"transactions in the underlying interest.","page_number":123,"box":{"x":116,"y":495,"width":288,"height":12}},{"id":"f13124a8-d250-48d7-9ac6-c9ed71544418","block_type":"box","text":"Certain Considerations Regarding Options","page_number":123,"box":{"x":151,"y":519,"width":314,"height":12}},{"id":"98b7d0d0-2c04-4965-8193-0f8bc9503411","block_type":"box","text":". The FLEX Options in which each Fund may invest will","page_number":123,"box":{"x":467,"y":519,"width":414,"height":12}},{"id":"3514e6e7-16a0-424b-944e-1a0dc5ac5a7a","block_type":"box","text":"be options on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a","page_number":123,"box":{"x":150,"y":534,"width":723,"height":12}},{"id":"6086991e-8b77-4445-a2f9-2a8e8b4b8485","block_type":"box","text":"“Reference Asset”). As such, the value of a Fund’s FLEX Options will fluctuate with changes in the","page_number":123,"box":{"x":150,"y":550,"width":735,"height":12}},{"id":"a3b900d8-ee01-4db1-9993-7af906378bc7","block_type":"box","text":"value of the securities held by the ETF, and thus the ETF’s share price. In addition to the value of","page_number":123,"box":{"x":150,"y":565,"width":726,"height":12}},{"id":"98b212c2-d42f-43ea-be2d-4b291f22ba28","block_type":"box","text":"the ETF, the value of an option, in general, will reflect, among other things, the time remaining until","page_number":123,"box":{"x":150,"y":581,"width":738,"height":12}},{"id":"1156a4c0-0956-43fd-b9ce-51eac87381c5","block_type":"box","text":"expiration (the end of the Outcome Period), the relationship of the exercise price to the market","page_number":123,"box":{"x":150,"y":596,"width":704,"height":12}},{"id":"eed64f28-4158-47ed-a873-f2414bc3326b","block_type":"box","text":"price of the Reference Asset, and general market conditions. Options that expire unexercised","page_number":123,"box":{"x":150,"y":612,"width":698,"height":12}},{"id":"87256803-736d-46df-9a52-3f8d8f8e9462","block_type":"box","text":"have no value.","page_number":123,"box":{"x":150,"y":628,"width":113,"height":9}},{"id":"1628a393-10ef-414f-9c47-362eb6885dc3","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase","page_number":123,"box":{"x":150,"y":652,"width":734,"height":12}},{"id":"2eabe3f4-59a9-415d-9b15-ed49df3dc8ab","block_type":"box","text":"(for a call option) or sell (for a put option) the Reference Asset at a predetermined specified price","page_number":123,"box":{"x":150,"y":667,"width":718,"height":12}},{"id":"38803fcc-c6d3-4547-964d-c2f2d2a3dd9d","block_type":"box","text":"(the “strike price”). When a Fund writes a call on the Reference Asset, it receives a premium and","page_number":123,"box":{"x":150,"y":683,"width":716,"height":12}},{"id":"caf45807-b296-40a2-a983-9b9820acc9c5","block_type":"box","text":"agrees that the purchaser of the call, upon exercise of the call, will receive from the Fund the","page_number":123,"box":{"x":150,"y":698,"width":688,"height":12}},{"id":"0c2dbd75-0675-4978-b417-59d4f27ea3c8","block_type":"box","text":"delivery of a specified number of shares of the ETF in exchange for the strike price. When a Fund","page_number":123,"box":{"x":150,"y":714,"width":724,"height":12}},{"id":"9c34d044-71c0-4d2f-a7e4-a1a34c3b7896","block_type":"box","text":"buys a call on the Reference Asset, it pays a premium and has the same rights to such call as","page_number":123,"box":{"x":150,"y":729,"width":697,"height":12}},{"id":"69439bfe-a4f3-40e9-ba58-f7f228bb38d0","block_type":"box","text":"indicated above. When a Fund buys a put on the Reference Asset, it pays a premium and has the","page_number":123,"box":{"x":150,"y":745,"width":725,"height":12}},{"id":"5cbae1c0-b1c7-40c2-84b0-d43434f8d353","block_type":"box","text":"right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":123,"box":{"x":150,"y":760,"width":704,"height":12}},{"id":"b8fda194-d8eb-4a2c-82c4-b61b9cf2cc80","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the","page_number":123,"box":{"x":150,"y":776,"width":700,"height":12}},{"id":"14377c49-8eb7-4de8-8b18-ad9aecfb9cb5","block_type":"box","text":"Reference Asset, it receives a premium and the purchaser of the put has the right to require the","page_number":123,"box":{"x":151,"y":791,"width":708,"height":12}},{"id":"c9d36a85-b044-4998-9e59-f2cf7b79f22e","block_type":"box","text":"Fund to deliver the specified number of shares of the ETF in exchange for the strike price.","page_number":123,"box":{"x":151,"y":807,"width":665,"height":12}},{"id":"9debed34-0604-46bd-9984-c3e369c27782","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may","page_number":123,"box":{"x":149,"y":831,"width":705,"height":12}},{"id":"9e51ee98-64d0-40dd-9e0f-3aca1ec2cbec","block_type":"box","text":"also utilize FLEX Options that are cash-settled. Cash-settled options give the holder the right to","page_number":123,"box":{"x":150,"y":847,"width":711,"height":12}},{"id":"dddfee94-5f88-4b7b-8c41-618dfa2f8b63","block_type":"box","text":"receive an amount (or owe an amount) of cash upon the exercise of the option. Gain or loss","page_number":123,"box":{"x":150,"y":862,"width":686,"height":12}},{"id":"a78da2b4-2058-434d-aba8-15b034ec54ca","block_type":"box","text":"depends on changes in the value of the ETF’s share price relative to the strike price for a given","page_number":123,"box":{"x":150,"y":878,"width":710,"height":12}},{"id":"a8029043-ff84-41c1-90d2-4cae135114e6","block_type":"box","text":"II-29","page_number":123,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e2c34664-f05c-43c3-b944-71ad317c4291","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":123,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fd791bc7-67b8-4a33-9c3b-a3c86252c216","block_type":"box","text":"option contract. The amount of cash is equal to the difference between the closing price of the","page_number":124,"box":{"x":150,"y":87,"width":702,"height":12}},{"id":"2505c587-7ec4-46ad-af21-3f83c647042c","block_type":"box","text":"ETF’s share price and the exercise price of the option contract times a specified multiple","page_number":124,"box":{"x":151,"y":102,"width":659,"height":12}},{"id":"93a2e981-a1ee-4783-b73f-a2ebf14de4d0","block_type":"box","text":"(“multiplier”), which determines the total value for each point of such difference.","page_number":124,"box":{"x":150,"y":118,"width":593,"height":12}},{"id":"0ab7d286-394b-4800-8b37-1758df2db655","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":124,"box":{"x":150,"y":141,"width":306,"height":12}},{"id":"eb7c93b8-5d49-447f-a168-52053bea8b40","block_type":"box","text":". If a Fund has purchased an option and exercises it","page_number":124,"box":{"x":458,"y":141,"width":382,"height":12}},{"id":"63748608-b760-4195-98ae-68b73cf556c8","block_type":"box","text":"before the closing value for that day is available, it runs the risk that the level of the Reference Asset","page_number":124,"box":{"x":150,"y":157,"width":735,"height":12}},{"id":"4592dee5-f7b6-4c88-8464-2ea6a496c1ad","block_type":"box","text":"may subsequently change. If such a change causes the exercised option to fall out of the money,","page_number":124,"box":{"x":150,"y":172,"width":714,"height":12}},{"id":"f7708271-79ec-45fe-9b6d-756ef54bcdb2","block_type":"box","text":"the applicable Fund will be required to pay the difference between the closing Reference Asset","page_number":124,"box":{"x":150,"y":188,"width":698,"height":12}},{"id":"2c792c2c-a4cf-4c70-8922-e743c98f1ddc","block_type":"box","text":"value and the exercise price of the option (times the applicable multiplier) to the assigned writer.","page_number":124,"box":{"x":150,"y":203,"width":706,"height":12}},{"id":"fc96b4f3-83af-45c5-a659-ce7cda7dd5f0","block_type":"box","text":"Foreign Exchange Transactions.","page_number":124,"box":{"x":116,"y":242,"width":247,"height":12}},{"id":"80f6da9c-60a3-4613-8ebb-a070ef13f7cf","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions","page_number":124,"box":{"x":116,"y":273,"width":731,"height":12}},{"id":"e32b2768-b80f-4e9c-acdf-35041c5907fe","block_type":"box","text":"(“FX forwards”) and currency swaps, purchase and sell currency options, currency futures and related","page_number":124,"box":{"x":117,"y":289,"width":760,"height":12}},{"id":"4f8a5375-c5b4-4fb2-88f8-b1735d5c668a","block_type":"box","text":"options thereon (collectively, “Currency Instruments”) for purposes of hedging against the decline in the","page_number":124,"box":{"x":116,"y":304,"width":772,"height":12}},{"id":"a1823083-8999-478f-954d-b63dfa60adbf","block_type":"box","text":"value of currencies in which its portfolio holdings are denominated against the U.S. dollar or, with","page_number":124,"box":{"x":116,"y":320,"width":725,"height":12}},{"id":"52e36f8c-f973-49b0-bfd1-2a66a0e8eaf3","block_type":"box","text":"respect to certain Funds, to seek to enhance returns.","page_number":124,"box":{"x":117,"y":335,"width":397,"height":12}},{"id":"e4d6dbc2-8245-484f-9f0f-b12fec5ebee9","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities","page_number":124,"box":{"x":116,"y":366,"width":734,"height":12}},{"id":"4231acb4-b98d-48ff-9c06-4b11d9c24d03","block_type":"box","text":"owned by a Fund, sold by a Fund but not","page_number":124,"box":{"x":116,"y":382,"width":309,"height":12}},{"id":"0432a52f-a02f-479a-bf5a-01f78419e5bc","block_type":"box","text":"yet delivered, or committed or anticipated to be purchased by","page_number":124,"box":{"x":426,"y":382,"width":460,"height":12}},{"id":"fdf40f81-eb58-4a3e-badf-af619108c2ec","block_type":"box","text":"a Fund. As an illustration, a Fund may use such techniques to hedge the stated value in U.S. dollars of","page_number":124,"box":{"x":116,"y":397,"width":768,"height":12}},{"id":"69c030e8-0ad7-4bdf-a5da-fa4865139e48","block_type":"box","text":"an investment in a yen-denominated security. For example, the Fund may purchase a foreign currency","page_number":124,"box":{"x":116,"y":413,"width":767,"height":12}},{"id":"5ea25f84-1d44-436b-b399-a87fb8d648d1","block_type":"box","text":"put option enabling it to sell a specified amount of yen","page_number":124,"box":{"x":117,"y":428,"width":404,"height":12}},{"id":"2992730f-a039-49d5-b753-9fb4b37d646f","block_type":"box","text":"for dollars at a specified price by a future date.","page_number":124,"box":{"x":521,"y":428,"width":350,"height":12}},{"id":"0c3127cd-a341-4475-9b36-fdc404437172","block_type":"box","text":"To the extent the hedge is successful, a loss in the value of the yen relative to the dollar will tend to be","page_number":124,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"fc9a893e-9c14-4741-88d2-19820caa3d98","block_type":"box","text":"offset by an increase in the value of the put option. To offset, in whole or in part, the cost of acquiring","page_number":124,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"c99e4fca-094f-41a1-88e2-0a1f343dcdb4","block_type":"box","text":"such a put option, the Fund may also sell a call option which, if exercised, requires it to sell a specified","page_number":124,"box":{"x":116,"y":475,"width":764,"height":12}},{"id":"259b88bb-8d1c-40d5-ba75-2f26b6134ec5","block_type":"box","text":"amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":124,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"106519c1-37bf-4b56-af9d-3ee3b419da39","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from","page_number":124,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"adca20e4-1859-4de0-9539-7a8280a0e0fb","block_type":"box","text":"increases in the relative value of the yen to the dollar. “Straddles” of the type that may be used by a","page_number":124,"box":{"x":117,"y":521,"width":742,"height":12}},{"id":"98b390fd-d367-40f9-8d4a-48eea58940fa","block_type":"box","text":"Fund are considered hedging transactions. Certain Funds have a fundamental investment restriction","page_number":124,"box":{"x":117,"y":537,"width":749,"height":12}},{"id":"859fee1d-b762-4e1b-a941-c6b252756087","block_type":"box","text":"that restricts currency option strategies.","page_number":124,"box":{"x":116,"y":552,"width":298,"height":12}},{"id":"3d701550-c53e-461f-84c7-fe64da7257a6","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation","page_number":124,"box":{"x":117,"y":583,"width":737,"height":12}},{"id":"02c8de7c-d40f-4cbe-b4cc-9cbf52b34464","block_type":"box","text":"risk. A Fund’s use of Currency Instruments to effect hedging strategies is intended to reduce the","page_number":124,"box":{"x":117,"y":599,"width":718,"height":12}},{"id":"eeeaf099-17a2-4be2-b99f-24bdde0a7b3e","block_type":"box","text":"volatility of the NAV of the Fund’s shares; however, the use of such hedging strategies will not prevent","page_number":124,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"cbb848b0-7159-4a24-8879-e2b6b0e4ffeb","block_type":"box","text":"the NAV of the Fund’s shares from fluctuating. Moreover, although Currency Instruments will be used","page_number":124,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"0f9924bb-8345-462e-b1c6-9fa175fd6f0a","block_type":"box","text":"with the intention of hedging against adverse currency movements, transactions in Currency","page_number":124,"box":{"x":116,"y":645,"width":689,"height":12}},{"id":"6d3ef207-02a6-45ac-9271-33ccf08791f5","block_type":"box","text":"Instruments involve the risk that anticipated currency movements will not be accurately predicted and","page_number":124,"box":{"x":117,"y":661,"width":749,"height":12}},{"id":"654f4f82-abad-460a-a769-7e4f439b74bd","block_type":"box","text":"that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges against","page_number":124,"box":{"x":116,"y":676,"width":701,"height":12}},{"id":"32c98ce8-3afc-485b-80af-6f0b64b73327","block_type":"box","text":"anticipated currency movements that do not occur, the Fund may realize losses and decrease its total","page_number":124,"box":{"x":116,"y":692,"width":755,"height":12}},{"id":"8db03909-c706-4121-8ab9-2e97174e1afa","block_type":"box","text":"return. Furthermore, a Fund will only engage in hedging activities from time to time and may not be","page_number":124,"box":{"x":117,"y":707,"width":733,"height":12}},{"id":"985aee62-950e-4d34-9f6f-6a125a369e18","block_type":"box","text":"engaging in hedging activities when movements in currency exchange rates actually occur.","page_number":124,"box":{"x":116,"y":723,"width":674,"height":12}},{"id":"1d27aa56-8ff0-4eb9-9975-ef4019fc397e","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign","page_number":124,"box":{"x":117,"y":754,"width":746,"height":12}},{"id":"45ae1612-9b5f-455c-8777-5eecc69fd92f","block_type":"box","text":"or domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified","page_number":124,"box":{"x":116,"y":769,"width":766,"height":12}},{"id":"b845064a-a83a-44d1-9145-b7a70e807e93","block_type":"box","text":"amount of a particular currency. There are no limitations on daily price moves in such forward","page_number":124,"box":{"x":116,"y":785,"width":693,"height":12}},{"id":"9923b198-3894-470c-83e1-0f109eeacdfb","block_type":"box","text":"contracts, and banks and dealers are not required to continue to make markets in such contracts.","page_number":124,"box":{"x":116,"y":800,"width":722,"height":12}},{"id":"cde2567e-efe7-4b39-9356-1ab886b26ecf","block_type":"box","text":"There have been periods during which certain banks or dealers have refused to quote prices for such","page_number":124,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"334f8a35-6b01-4090-ba25-3338e1d98908","block_type":"box","text":"forward contracts or have quoted prices with an unusually wide spread between the price at which the","page_number":124,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"ee802163-b5e7-49cd-bcf1-e81b9614c53a","block_type":"box","text":"bank or dealer is prepared to buy and that at which it is prepared to sell. Governmental imposition of","page_number":124,"box":{"x":117,"y":847,"width":747,"height":12}},{"id":"ab1aee19-c7a1-47c7-9d27-b3ab165db19c","block_type":"box","text":"currency controls might limit any such forward contract trading. With respect to its trading of forward","page_number":124,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"f67da2c6-55ae-4a64-be7b-9645aef5515e","block_type":"box","text":"contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a","page_number":124,"box":{"x":116,"y":878,"width":689,"height":12}},{"id":"61e9da85-5adf-4948-824d-bb38794f1a6c","block_type":"box","text":"II-30","page_number":124,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9dcefde7-cd4e-44e1-a568-28b0c98ba62a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":124,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4807cfe0-a1f3-48ab-875d-b966dbaf2296","block_type":"box","text":"counterparty would deprive the Fund of any profit potential or force the Fund to cover its commitments","page_number":125,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"3ee34ea0-63a6-484d-8d50-90ba23e219c8","block_type":"box","text":"for resale, if any, at the then market price and could result in a loss to the Fund.","page_number":125,"box":{"x":116,"y":102,"width":595,"height":13}},{"id":"12466a25-4aaf-409f-ba3e-52a8efebcdf2","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if","page_number":125,"box":{"x":117,"y":134,"width":709,"height":12}},{"id":"030dd7f2-61cb-4a75-bc3c-1f18f72b50ac","block_type":"box","text":"correctly anticipated, in the event that (i) the currency exchange rate movement is so generally","page_number":125,"box":{"x":116,"y":149,"width":707,"height":12}},{"id":"40b6e183-691b-4bd5-8838-03d90b5fdb00","block_type":"box","text":"anticipated that the Fund is not able to enter into a hedging transaction at an effective price, or (ii) the","page_number":125,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"0b1756c2-80a3-42d5-892e-b2ca8665b085","block_type":"box","text":"currency exchange rate movement relates to a market with respect to which Currency Instruments are","page_number":125,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"1f5176a1-3c55-4107-af26-3ee6f8c4bd23","block_type":"box","text":"not available and it is not possible to engage in effective foreign currency hedging. The cost to a Fund","page_number":125,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"245d88a9-505e-4f06-a46a-9c25bdd652f4","block_type":"box","text":"of engaging in foreign currency transactions varies with such factors as the currencies involved, the","page_number":125,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"a83096f6-ad15-49c9-b06c-9733ff8d586d","block_type":"box","text":"length of the contract period and the market conditions then prevailing. Since transactions in foreign","page_number":125,"box":{"x":117,"y":227,"width":744,"height":12}},{"id":"0aa4348f-cc00-4f96-8284-be524c1063aa","block_type":"box","text":"currency exchange usually are conducted on a principal basis, no fees or commissions are involved.","page_number":125,"box":{"x":116,"y":242,"width":750,"height":12}},{"id":"676d448e-2f7f-4336-b025-e77accd12e19","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns","page_number":125,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"6cbdd742-c0fd-4893-b5ba-3179eb5d48c6","block_type":"box","text":"(including receivables for unsettled securities sales), or has committed to purchase or anticipates","page_number":125,"box":{"x":117,"y":289,"width":724,"height":12}},{"id":"e055a2ae-567d-4ed7-827d-088e39446a84","block_type":"box","text":"purchasing, which are denominated in such currency.","page_number":125,"box":{"x":117,"y":304,"width":401,"height":12}},{"id":"236260be-68ab-4316-9148-89e693d4268e","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":125,"box":{"x":117,"y":335,"width":271,"height":12}},{"id":"9af76aa5-6e15-4739-8256-1362f325913a","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified","page_number":125,"box":{"x":390,"y":335,"width":470,"height":12}},{"id":"d6089d22-b979-4c77-96ed-59e11aaaaf1e","block_type":"box","text":"amount of a specified currency or multinational currency unit at a specified price and specified future","page_number":125,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"17157891-e797-478e-ab9e-b1f8532f1ccf","block_type":"box","text":"date. Spot foreign exchange transactions are similar but are settled in the current, or “spot”, market. A","page_number":125,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"9709b6ae-c233-4384-b8de-858a91f27371","block_type":"box","text":"Fund will enter into foreign exchange transactions for purposes of hedging either a specific transaction","page_number":125,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"8a2fa463-afcb-4cad-8cb1-329fd00ff4e2","block_type":"box","text":"or a portfolio position, or, with respect to certain Funds, to seek to enhance returns. FX forwards","page_number":125,"box":{"x":116,"y":397,"width":719,"height":12}},{"id":"5e739208-0bd4-48cc-bbbb-f46d487f50ed","block_type":"box","text":"involve substantial currency risk, credit risk and liquidity risk. A Fund may enter into a foreign exchange","page_number":125,"box":{"x":117,"y":413,"width":770,"height":12}},{"id":"6fc634aa-decf-4fa2-8299-2bae40cea431","block_type":"box","text":"transaction for purposes of hedging a specific transaction by, for example, purchasing a currency","page_number":125,"box":{"x":116,"y":428,"width":725,"height":12}},{"id":"73baf0de-eb35-4fbe-a5eb-1296d49d7206","block_type":"box","text":"needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":125,"box":{"x":117,"y":444,"width":699,"height":12}},{"id":"e53cacf4-2e3e-4bf0-b940-4187c557761c","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction","page_number":125,"box":{"x":116,"y":459,"width":754,"height":12}},{"id":"3a536d5a-75e0-4372-bede-68c166d34342","block_type":"box","text":"for purposes of hedging a portfolio position by selling forward a currency in which a portfolio position of","page_number":125,"box":{"x":116,"y":475,"width":767,"height":12}},{"id":"b8e7507f-8827-4088-ad93-ee32c876f2d4","block_type":"box","text":"the Fund is denominated or by purchasing a currency in which the Fund anticipates acquiring a","page_number":125,"box":{"x":116,"y":490,"width":711,"height":12}},{"id":"d89c8c88-17b5-432f-9dad-2faa7c9b1227","block_type":"box","text":"portfolio position in the near future. A Fund may also hedge a currency by entering into a transaction in","page_number":125,"box":{"x":117,"y":506,"width":767,"height":12}},{"id":"7b32d888-c5fb-4d0a-b076-d6cdf612f89a","block_type":"box","text":"a Currency Instrument denominated in a currency other than the currency being hedged (a “cross","page_number":125,"box":{"x":116,"y":521,"width":729,"height":12}},{"id":"73d01d6e-0f82-4c87-8fb9-ea449373ae42","block_type":"box","text":"hedge”). A Fund will only enter into a cross-hedge if the Manager believes that (i) there is a","page_number":125,"box":{"x":117,"y":537,"width":680,"height":12}},{"id":"c02be201-f334-431e-848b-39d55d81655b","block_type":"box","text":"demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":125,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"6460fc63-fb06-482c-919e-9e6315f11ff6","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross","page_number":125,"box":{"x":116,"y":568,"width":722,"height":12}},{"id":"502cd420-639d-4291-8352-7d9bbfa183d2","block_type":"box","text":"hedge is denominated will be significantly more cost-effective or provide substantially greater liquidity","page_number":125,"box":{"x":117,"y":583,"width":755,"height":12}},{"id":"582ef488-70de-405e-b3d2-990b7a4ddce3","block_type":"box","text":"than executing a similar hedging transaction by means of the currency being hedged.","page_number":125,"box":{"x":116,"y":599,"width":638,"height":12}},{"id":"163b890d-c45e-40ba-900a-c2baec48cc28","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on","page_number":125,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"6a98b659-a363-4ac3-ac8d-9adf382778ea","block_type":"box","text":"the value of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when","page_number":125,"box":{"x":116,"y":645,"width":747,"height":12}},{"id":"094b6528-46b0-41e7-aec9-464d6d8229ce","block_type":"box","text":"the currency to which the Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar.","page_number":125,"box":{"x":116,"y":661,"width":727,"height":12}},{"id":"3c97d9d0-eb49-4f5e-895d-2048a45f3066","block_type":"box","text":"Proxy hedging entails entering into a forward contract to sell a currency whose changes in value are","page_number":125,"box":{"x":117,"y":676,"width":741,"height":12}},{"id":"f45aab50-fc26-44b2-a020-be2626bb486f","block_type":"box","text":"generally considered to be linked to a currency or currencies in which some or all of the Fund’s","page_number":125,"box":{"x":116,"y":692,"width":704,"height":12}},{"id":"33170c7d-b141-43aa-97a9-f871696659f5","block_type":"box","text":"securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy hedging involves","page_number":125,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"17d76425-c896-4cb7-ad6c-5e4886619151","block_type":"box","text":"some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":125,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"21f3dab0-16d9-4c5c-9503-f9ef8fdd4cfb","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a","page_number":125,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"81cb3904-4ecc-4348-af4b-5eeb6e25e8a0","block_type":"box","text":"degree or in a direction that is not anticipated. In addition, there is the risk that the perceived linkage","page_number":125,"box":{"x":116,"y":754,"width":742,"height":12}},{"id":"4caa782f-3e18-43a6-ab8f-fda3aa7c0ee9","block_type":"box","text":"between various currencies may not be present, including during the particular time that a Fund is","page_number":125,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"0c070568-a213-4737-985d-7a64f07f8247","block_type":"box","text":"engaging in proxy hedging.","page_number":125,"box":{"x":116,"y":785,"width":200,"height":12}},{"id":"5d5660d8-fe00-42f0-bc71-c290804dd3bf","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more","page_number":125,"box":{"x":116,"y":816,"width":703,"height":12}},{"id":"adb4954b-d411-47ce-bba8-d5c372a1ee76","block_type":"box","text":"currencies that are expected to decline in value relative to other currencies to which the Fund has or in","page_number":125,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"a17f8c46-33c3-49ae-891e-2f8f4cc6de24","block_type":"box","text":"which the Fund expects to have portfolio exposure. For example, a Fund may hold both Canadian","page_number":125,"box":{"x":116,"y":847,"width":731,"height":12}},{"id":"341b1e15-290d-4a0f-b0e3-4024e13723f9","block_type":"box","text":"government bonds and Japanese government bonds, and the Manager or sub-adviser may believe","page_number":125,"box":{"x":116,"y":862,"width":741,"height":12}},{"id":"29e73ec4-14b7-45c5-b031-9cee981f94e3","block_type":"box","text":"that Canadian dollars will deteriorate against Japanese yen. The Fund would sell Canadian dollars to","page_number":125,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"0b4b73bc-e2b2-4c53-9401-a11097d6974d","block_type":"box","text":"II-31","page_number":125,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"8cbb9409-5f8e-4de4-bd12-2c4af7ce1d3a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":125,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"be7a192d-a102-47a3-83fa-0c812993bbe1","block_type":"box","text":"reduce its exposure to that currency and buy Japanese yen. This strategy would be a hedge against a","page_number":126,"box":{"x":117,"y":87,"width":761,"height":12}},{"id":"d1ee0f11-ea26-495c-9132-86b0734d42bd","block_type":"box","text":"decline in the value of Canadian dollars, although it would expose the Fund to declines in the value of","page_number":126,"box":{"x":116,"y":102,"width":758,"height":13}},{"id":"eee77bef-7d3c-4031-baa8-1c893edc07be","block_type":"box","text":"the Japanese yen relative to the U.S. dollar.","page_number":126,"box":{"x":116,"y":118,"width":331,"height":12}},{"id":"2b9f8689-1e41-458c-9203-560531bedcc5","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as","page_number":126,"box":{"x":116,"y":152,"width":690,"height":12}},{"id":"f65fcd36-304a-4506-86b3-63013708fee9","block_type":"box","text":"non-deliverable forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be","page_number":126,"box":{"x":117,"y":168,"width":748,"height":12}},{"id":"1d614094-b084-403d-93e4-ef3c1d3aaff6","block_type":"box","text":"thinly traded or are denominated in non-convertible foreign currency, where the profit or loss at the","page_number":126,"box":{"x":116,"y":183,"width":736,"height":12}},{"id":"1041f8b8-54ee-461e-acd7-205b3913f1a7","block_type":"box","text":"time at the settlement date is calculated by taking the difference between the agreed upon exchange","page_number":126,"box":{"x":116,"y":199,"width":752,"height":12}},{"id":"f94c06fe-a0ae-4d82-a652-5c78c0446464","block_type":"box","text":"rate and the spot rate at the time of settlement, for an agreed upon notional amount of funds. All NDFs","page_number":126,"box":{"x":117,"y":214,"width":765,"height":12}},{"id":"06188756-0e35-4d0a-83bb-86834c7b2b25","block_type":"box","text":"have a fixing date and a settlement date. The fixing date is the date at which the difference between","page_number":126,"box":{"x":117,"y":230,"width":746,"height":12}},{"id":"a70227bf-384e-4e62-8109-3429c3f31e61","block_type":"box","text":"the prevailing market exchange rate and the agreed upon exchange rate is calculated. The settlement","page_number":126,"box":{"x":116,"y":245,"width":761,"height":12}},{"id":"a7e4174c-ac91-4260-8beb-3d44a63ee6e4","block_type":"box","text":"date is the date by which the payment of the difference is due to the party receiving payment. NDFs","page_number":126,"box":{"x":116,"y":261,"width":745,"height":12}},{"id":"9b2b63a3-9a6e-4eba-a9a8-7c27a85bd996","block_type":"box","text":"are commonly quoted for time periods of one month up to two years, and are normally quoted and","page_number":126,"box":{"x":116,"y":276,"width":733,"height":12}},{"id":"ccacfe18-2670-4f57-b6c0-6e665e37e7b1","block_type":"box","text":"settled in U.S. dollars. They are often used to gain exposure to and/or hedge exposure to foreign","page_number":126,"box":{"x":116,"y":292,"width":723,"height":12}},{"id":"d11b51be-8f40-4ad3-a259-f2cbf865ae92","block_type":"box","text":"currencies that are not internationally traded.","page_number":126,"box":{"x":116,"y":307,"width":337,"height":12}},{"id":"6451d752-87b8-4c5a-ba17-3dad98d5da8f","block_type":"box","text":"Currency Futures.","page_number":126,"box":{"x":117,"y":341,"width":132,"height":12}},{"id":"d9f7ebe1-874a-4ae9-a183-e0b99b824582","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":126,"box":{"x":250,"y":341,"width":626,"height":12}},{"id":"c6ed87cd-bb90-4b87-a162-708de437cbeb","block_type":"box","text":"currency through use of currency futures or options on currency futures. Currency futures are similar to","page_number":126,"box":{"x":116,"y":357,"width":769,"height":12}},{"id":"78c661be-d807-4b66-a099-22c114e56493","block_type":"box","text":"forward foreign exchange transactions except that futures are standardized, exchange-traded contracts","page_number":126,"box":{"x":116,"y":372,"width":772,"height":12}},{"id":"f50e8f79-c140-411a-a1d6-31e828b92eb8","block_type":"box","text":"while forward foreign exchange transactions are traded in the OTC market. Currency futures involve","page_number":126,"box":{"x":116,"y":388,"width":747,"height":12}},{"id":"18cbac92-42f1-4668-80bd-b5318d846f66","block_type":"box","text":"substantial currency risk as well as the risks discussed above in “—Futures.”","page_number":126,"box":{"x":116,"y":403,"width":573,"height":12}},{"id":"df806da6-4991-4488-b7ef-377ab0314bc7","block_type":"box","text":"Currency Options.","page_number":126,"box":{"x":117,"y":437,"width":133,"height":12}},{"id":"16c9b8b8-9129-48a6-985f-bf9e52c2b1fa","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":126,"box":{"x":251,"y":437,"width":626,"height":12}},{"id":"57d6ae98-94d3-45cd-a0ff-121e99bb6877","block_type":"box","text":"currency through the use of currency options. Certain Funds have fundamental investment restrictions","page_number":126,"box":{"x":116,"y":453,"width":763,"height":12}},{"id":"136253a7-5fb5-4658-a170-a6d91809d6b0","block_type":"box","text":"that permit the purchase of currency options, but prohibit the writing of currency options. Currency","page_number":126,"box":{"x":116,"y":468,"width":732,"height":12}},{"id":"e4837276-1b2d-4802-ba2b-170c54e62ac1","block_type":"box","text":"options are similar to options on securities. For example, in consideration for an option premium the","page_number":126,"box":{"x":116,"y":484,"width":745,"height":12}},{"id":"f4ced29c-fbc3-49ba-ab48-114c5194a344","block_type":"box","text":"writer of a currency option is obligated to sell (in the case of a call option) or purchase (in the case of a","page_number":126,"box":{"x":116,"y":499,"width":765,"height":13}},{"id":"5b28db12-a3a9-445c-ba8a-3b1c2aa0bb05","block_type":"box","text":"put option) a specified amount of a specified currency on or before the expiration date for a specified","page_number":126,"box":{"x":117,"y":515,"width":750,"height":12}},{"id":"83d60760-0a1f-4da9-900a-6f76f1972d57","block_type":"box","text":"amount of another currency. A Fund may engage in transactions in options on currencies either on","page_number":126,"box":{"x":116,"y":530,"width":737,"height":13}},{"id":"ae54706f-7665-4a8b-b934-b8473ed9c604","block_type":"box","text":"exchanges or OTC markets. Such transactions in options may include exotic options on currencies,","page_number":126,"box":{"x":116,"y":546,"width":743,"height":12}},{"id":"8e1770ef-5284-4198-92db-6ceaf543c64c","block_type":"box","text":"which are typically traded in OTC markets and have additional features that result in different payment","page_number":126,"box":{"x":116,"y":561,"width":763,"height":13}},{"id":"e130ec05-ba8a-474c-8b19-f15e0b52766f","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered","page_number":126,"box":{"x":116,"y":577,"width":771,"height":12}},{"id":"02ffee5b-61a3-4eb4-948f-d948b171e808","block_type":"box","text":"call options on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options","page_number":126,"box":{"x":116,"y":592,"width":752,"height":13}},{"id":"fbfe4691-86c0-4199-8120-39540c8339c6","block_type":"box","text":"involve substantial currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":126,"box":{"x":117,"y":608,"width":651,"height":12}},{"id":"cdcf5786-cea1-424c-b3d6-2ec31caa6521","block_type":"box","text":"Currency Swaps.","page_number":126,"box":{"x":117,"y":642,"width":131,"height":12}},{"id":"46e176c3-55d5-4c2e-8439-540f2c2cd100","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency","page_number":126,"box":{"x":248,"y":642,"width":557,"height":12}},{"id":"1f98dd6e-8134-41f7-a8d2-4150c4e7da06","block_type":"box","text":"fluctuations or to hedge portfolio positions. Currency swaps are transactions in which one currency is","page_number":126,"box":{"x":116,"y":658,"width":754,"height":12}},{"id":"e7bf7719-5f13-457b-9ff7-d69a90c9d6c2","block_type":"box","text":"simultaneously bought for a second currency on a spot basis and sold for the second currency on a","page_number":126,"box":{"x":116,"y":673,"width":737,"height":12}},{"id":"cf462625-351d-4344-a6ba-32bf16297399","block_type":"box","text":"forward basis. Currency swaps involve the exchange of the rights of a Fund and another party to make","page_number":126,"box":{"x":116,"y":689,"width":762,"height":12}},{"id":"67dae762-b3a6-46cd-9ea4-f5a9630b50a6","block_type":"box","text":"or receive payments in specified currencies, and typically require the delivery of the entire principal","page_number":126,"box":{"x":116,"y":704,"width":732,"height":12}},{"id":"aaf3658d-c729-416a-b5cb-05667d97fd4a","block_type":"box","text":"value of one designated currency in exchange for the other designated currency. As a result, the entire","page_number":126,"box":{"x":116,"y":720,"width":763,"height":12}},{"id":"62c24641-6e9a-4342-97b0-44d92d4be9e3","block_type":"box","text":"principal value of a currency swap is subject to the risk that the other party to the swap will default on","page_number":126,"box":{"x":117,"y":735,"width":747,"height":12}},{"id":"d61cb721-d6ee-4a67-9bc5-44f78fcd1a71","block_type":"box","text":"its contractual delivery obligations.","page_number":126,"box":{"x":117,"y":751,"width":254,"height":12}},{"id":"7c9606ee-0613-43c2-87a9-824c99d0a2fa","block_type":"box","text":"Distressed Securities.","page_number":126,"box":{"x":116,"y":785,"width":174,"height":9}},{"id":"e8827e92-59eb-4dd4-b0ce-2c0068bb5748","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary","page_number":126,"box":{"x":296,"y":785,"width":565,"height":12}},{"id":"91d00e82-c162-4e4d-9db8-0bb76fa8491e","block_type":"box","text":"market, that are the subject of bankruptcy proceedings or otherwise in default or in risk of being in","page_number":126,"box":{"x":117,"y":800,"width":724,"height":12}},{"id":"2d59d1d3-b5ae-452c-a4a2-508b8aea8947","block_type":"box","text":"default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are","page_number":126,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"7053d055-f718-4a4d-9fa9-b4bb230a67b7","block_type":"box","text":"rated in the lower rating categories by one or more nationally recognized statistical rating organizations","page_number":126,"box":{"x":117,"y":831,"width":768,"height":12}},{"id":"58f60fc1-aa36-45f3-bee2-14a7b2fdcdb6","block_type":"box","text":"(for example, Ca or lower by Moody’s and CC or lower by S&P or Fitch) or, if unrated, are in the","page_number":126,"box":{"x":117,"y":847,"width":715,"height":12}},{"id":"03dc321c-f8cc-428e-932d-331f12908882","block_type":"box","text":"judgment of the Manager of equivalent quality (“Distressed Securities”). Investment in Distressed","page_number":126,"box":{"x":115,"y":862,"width":725,"height":12}},{"id":"37ec856f-461b-4f9d-abf7-3703e735f0d2","block_type":"box","text":"Securities is speculative and involves significant risks.","page_number":126,"box":{"x":116,"y":878,"width":405,"height":12}},{"id":"03a692c1-0588-4530-9fd9-e2ee4a08d7ad","block_type":"box","text":"II-32","page_number":126,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"b5e1e00f-5e3f-4347-bcd4-fb537c5dc1e3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":126,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"56636c97-71cf-4415-aa90-f062a7bb194b","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely","page_number":127,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"41dd4e88-6987-4943-a865-d4c463ff8068","block_type":"box","text":"that the issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan","page_number":127,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"20de0d6b-5ca7-481e-8350-cc1608abdd65","block_type":"box","text":"of reorganization pursuant to which the Fund will receive new securities in return for the Distressed","page_number":127,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"c7817934-be51-4c5a-99d8-20546ec9ff10","block_type":"box","text":"Securities. However, there can be no assurance that such an exchange offer will be made or that such","page_number":127,"box":{"x":116,"y":134,"width":766,"height":12}},{"id":"a22cb9c1-a20b-486c-8495-6a4639180445","block_type":"box","text":"a plan of reorganization will be adopted. In addition, a significant period of time may pass between the","page_number":127,"box":{"x":116,"y":149,"width":762,"height":12}},{"id":"5971724c-fd94-4d16-9cbf-6df3100f3f86","block_type":"box","text":"time at which a Fund makes its investment in Distressed Securities and the time that any such","page_number":127,"box":{"x":116,"y":165,"width":704,"height":12}},{"id":"eaac5f5a-2f12-4ceb-ab60-c9958592511c","block_type":"box","text":"exchange offer or plan of reorganization is completed. During this period, it is unlikely that a Fund will","page_number":127,"box":{"x":116,"y":180,"width":756,"height":12}},{"id":"a47965c6-be84-48c3-ad71-8b513cc7d0dd","block_type":"box","text":"receive any interest payments on the Distressed Securities, the Fund will be subject to significant","page_number":127,"box":{"x":117,"y":196,"width":725,"height":12}},{"id":"668a46a5-cb74-45de-9616-33f470019310","block_type":"box","text":"uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":127,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"2479ee50-591f-4d45-9b69-81eddcdf0fc8","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment.","page_number":127,"box":{"x":117,"y":227,"width":741,"height":12}},{"id":"4d0d7d0b-3875-4a5a-a4c5-d0b0adb440ae","block_type":"box","text":"Therefore, to the extent the Fund seeks capital appreciation through investment in distressed","page_number":127,"box":{"x":116,"y":242,"width":696,"height":12}},{"id":"7bd037be-2286-48cb-b79e-860f2acc2b9c","block_type":"box","text":"securities, the Fund’s ability to achieve current income for its shareholders may be diminished. The","page_number":127,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"cde59870-daa1-463f-b90a-348b7f5ea821","block_type":"box","text":"Fund also will be subject to significant uncertainty as to when and in what manner and for what value","page_number":127,"box":{"x":117,"y":273,"width":753,"height":12}},{"id":"72cd6acc-e5af-447e-ae32-023321cafe37","block_type":"box","text":"the obligations evidenced by the distressed securities will eventually be satisfied (","page_number":127,"box":{"x":116,"y":289,"width":605,"height":12}},{"id":"7fefa880-013c-4b73-9bbf-7cefb368a5ef","block_type":"box","text":"e.g.","page_number":127,"box":{"x":723,"y":291,"width":25,"height":10}},{"id":"b2494b58-52eb-442c-9820-ffbefa2d63b7","block_type":"box","text":", through a","page_number":127,"box":{"x":751,"y":289,"width":84,"height":12}},{"id":"3e3dd3a8-a28a-48c8-b12b-66626697174f","block_type":"box","text":"liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the distressed","page_number":127,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"ec356657-2f78-4113-b016-baa88b9af3d5","block_type":"box","text":"securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":127,"box":{"x":116,"y":320,"width":757,"height":12}},{"id":"e0939d24-7fca-4980-81df-99f174d16808","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there","page_number":127,"box":{"x":117,"y":335,"width":754,"height":12}},{"id":"4d631c79-4499-41fd-86a4-6e999a06c6ea","block_type":"box","text":"can be no assurance that the securities or other assets received by a Fund in connection with such","page_number":127,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"0c1b3748-acb7-4dc7-8b25-df12af897155","block_type":"box","text":"exchange offer or plan of reorganization will not have a lower value or income potential than may have","page_number":127,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"3a44edb8-d1b2-4648-ba39-ff7337c91e53","block_type":"box","text":"been anticipated when the investment was made or no value. Moreover, any securities received by a","page_number":127,"box":{"x":117,"y":382,"width":753,"height":12}},{"id":"d8c5957e-082d-4948-8a40-5d7085c01431","block_type":"box","text":"Fund upon completion of an exchange offer or plan of reorganization may be restricted as to resale.","page_number":127,"box":{"x":117,"y":397,"width":745,"height":12}},{"id":"73d255f9-08e4-4f98-b035-428e18a91729","block_type":"box","text":"Similarly, if a Fund participates in negotiations with respect to any exchange offer or plan of","page_number":127,"box":{"x":116,"y":413,"width":683,"height":12}},{"id":"5ff9f106-7f27-4fc8-9af3-e4a0b82ffb34","block_type":"box","text":"reorganization with respect to an issuer of Distressed Securities, the Fund may be restricted from","page_number":127,"box":{"x":117,"y":428,"width":726,"height":12}},{"id":"c21808cc-e526-4c28-90bf-dc25278a6e8a","block_type":"box","text":"disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":127,"box":{"x":116,"y":444,"width":734,"height":12}},{"id":"a5281013-ba91-4440-b37c-b6adb6c673ed","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by","page_number":127,"box":{"x":117,"y":459,"width":752,"height":12}},{"id":"05bb616a-88cf-415a-98f5-718af190c49d","block_type":"box","text":"an investor. The Fund, however, will not make investments for the purpose of exercising day-to-day","page_number":127,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"31ac74b9-f9d0-49af-8f1b-1bfc7c9ca333","block_type":"box","text":"management of any issuer’s affairs.","page_number":127,"box":{"x":117,"y":490,"width":269,"height":12}},{"id":"2a143b30-c712-45ef-a3c5-9bd21e98487f","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":127,"box":{"x":116,"y":521,"width":472,"height":12}},{"id":"fc1b5885-0471-4b25-9111-f639c34d89c5","block_type":"box","text":". Although a Fund does not seek to","page_number":127,"box":{"x":590,"y":521,"width":264,"height":12}},{"id":"aa079f85-4ba7-4bce-871f-60cb6d6481ef","block_type":"box","text":"implement a specific sustainability objective, strategy or process unless disclosed in its Prospectus,","page_number":127,"box":{"x":117,"y":537,"width":741,"height":12}},{"id":"d0878039-fec7-4edf-98e1-2daba33af3ad","block_type":"box","text":"Fund management will consider ESG factors as part of the investment process for the Fund. Fund","page_number":127,"box":{"x":117,"y":552,"width":733,"height":12}},{"id":"ef475616-0fb7-46c6-bf1d-acb233970e2a","block_type":"box","text":"management views ESG integration as the practice of incorporating financially material ESG data or","page_number":127,"box":{"x":117,"y":568,"width":747,"height":12}},{"id":"1ed31626-f99c-4629-82b1-a872a87d12c0","block_type":"box","text":"information into investment processes with the objective of enhancing risk-adjusted returns. These","page_number":127,"box":{"x":117,"y":583,"width":734,"height":12}},{"id":"ba9957d6-61af-4b0c-8627-7276543eb9c2","block_type":"box","text":"ESG considerations will vary depending on a Fund’s particular investment strategies and may include","page_number":127,"box":{"x":117,"y":599,"width":757,"height":12}},{"id":"75c13499-6263-4d42-816a-ac314d93880f","block_type":"box","text":"consideration of third-party research as well as consideration of proprietary BlackRock research across","page_number":127,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"a1cb948a-9094-49f4-b469-b3e0946dfbe6","block_type":"box","text":"the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":127,"box":{"x":116,"y":630,"width":725,"height":12}},{"id":"766fb539-4180-4a0d-9405-d35cfcf5af4d","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be","page_number":127,"box":{"x":117,"y":645,"width":738,"height":12}},{"id":"5a621b71-fafe-4ecc-ace9-41ebe9318258","block_type":"box","text":"relevant with respect to all issuers that are eligible for investment.","page_number":127,"box":{"x":117,"y":661,"width":484,"height":12}},{"id":"b2198fcd-1aeb-4be5-b3b9-6a0b14a55792","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While","page_number":127,"box":{"x":117,"y":692,"width":764,"height":12}},{"id":"75532f8a-fa56-425e-aa63-e5baae2cf234","block_type":"box","text":"Fund management views ESG considerations as having the potential to contribute to a Fund’s long","page_number":127,"box":{"x":117,"y":707,"width":740,"height":12}},{"id":"3e805e1a-bf4b-4643-9962-f94c64500ca4","block_type":"box","text":"term performance, there is no guarantee that such results will be achieved.","page_number":127,"box":{"x":116,"y":723,"width":555,"height":12}},{"id":"d83b228f-5693-4421-8015-b1e4f2372ff7","block_type":"box","text":"Equity Securities.","page_number":127,"box":{"x":116,"y":754,"width":140,"height":12}},{"id":"0c4484d5-245b-46e8-8121-83d20619f33a","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for","page_number":127,"box":{"x":263,"y":754,"width":618,"height":12}},{"id":"16adfd3b-79af-4427-9b84-f903616da56f","block_type":"box","text":"certain Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants","page_number":127,"box":{"x":116,"y":769,"width":755,"height":12}},{"id":"3f226b27-000c-42ed-b4a9-5f0072b674fa","block_type":"box","text":"and rights; equity interests in trusts; general and limited partnerships and limited liability companies;","page_number":127,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"55381a13-b22a-4494-a0d7-f663225f3a3c","block_type":"box","text":"and depositary receipts. Stock markets are volatile. The price of equity securities will fluctuate and can","page_number":127,"box":{"x":116,"y":800,"width":759,"height":12}},{"id":"c929b7ae-ddec-46e4-957f-9190560f742a","block_type":"box","text":"decline and reduce the value of a portfolio investing in equities. The price of equity securities fluctuates","page_number":127,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"42ba957b-832d-4530-bfad-fdf193ca66af","block_type":"box","text":"based on changes in a company’s financial condition and overall market and economic conditions. The","page_number":127,"box":{"x":117,"y":831,"width":767,"height":12}},{"id":"95bc25a8-2a13-49be-8ddc-2f3cfaab98bc","block_type":"box","text":"value of equity securities purchased by the Fund could decline if the financial condition of the","page_number":127,"box":{"x":116,"y":847,"width":695,"height":12}},{"id":"73cd3e0f-90b2-4ae2-9a48-1a041a4524a4","block_type":"box","text":"companies the Fund invests in decline or if overall market and economic conditions deteriorate. They","page_number":127,"box":{"x":116,"y":862,"width":755,"height":12}},{"id":"f9213ffc-57ad-4f3a-8a80-01b9d1e0ec9c","block_type":"box","text":"may also decline due to factors that affect a particular industry or industries, such as labor shortages or","page_number":127,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"c2fb14db-d525-4d8b-ab84-6733a1ab096b","block_type":"box","text":"II-33","page_number":127,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5daf1ba0-337f-4678-b472-aeed5d6cfa81","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":127,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"01391cda-42c2-4adb-bc02-04c8571fcb2d","block_type":"box","text":"increase in production costs and competitive conditions within an industry. In addition, they may","page_number":128,"box":{"x":117,"y":87,"width":714,"height":12}},{"id":"8dbc83e9-1572-44d7-806e-4f36433f2df0","block_type":"box","text":"decline due to general market conditions that are not specifically related to a company or industry,","page_number":128,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"d65b8824-e38c-4b70-b0e7-76ea8060360d","block_type":"box","text":"such as real or perceived adverse economic conditions, changes in the general outlook for corporate","page_number":128,"box":{"x":116,"y":118,"width":753,"height":12}},{"id":"98445385-62c2-4192-a7ec-6df38a23c894","block_type":"box","text":"earnings, changes in interest or currency rates or generally adverse investor sentiment.","page_number":128,"box":{"x":116,"y":134,"width":654,"height":12}},{"id":"48e2edee-0f0f-4085-bfb4-d859a3967ce6","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public","page_number":128,"box":{"x":117,"y":165,"width":704,"height":12}},{"id":"5265f539-6637-4228-8f79-1b0d428e0f8f","block_type":"box","text":"offerings (“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for","page_number":128,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"27c33603-58b2-49ff-a085-0673809e9264","block_type":"box","text":"certain Funds. There is no assurance that any Fund will have continued access to profitable IPOs and","page_number":128,"box":{"x":116,"y":196,"width":761,"height":12}},{"id":"48194068-ded2-4bf6-ad83-1582c0430547","block_type":"box","text":"therefore investors should not rely on these past gains as an indication of future performance. The","page_number":128,"box":{"x":116,"y":211,"width":734,"height":12}},{"id":"b46ec0d6-effe-4226-8107-aabc004655e6","block_type":"box","text":"investment performance of a Fund during periods when it is unable to invest significantly or at all in","page_number":128,"box":{"x":117,"y":227,"width":738,"height":12}},{"id":"490c5811-74cf-4c31-8011-1a9225931483","block_type":"box","text":"IPOs may be lower than during periods when it is able to do so. In addition, as a Fund increases in","page_number":128,"box":{"x":117,"y":242,"width":736,"height":12}},{"id":"5f2351a0-1ef4-4f97-bedc-def8753467da","block_type":"box","text":"size, the impact of IPOs on its performance will generally decrease. Securities issued in IPOs are","page_number":128,"box":{"x":116,"y":258,"width":727,"height":12}},{"id":"00c8e8a0-42d2-49c3-bf54-3551244d832f","block_type":"box","text":"subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":128,"box":{"x":116,"y":273,"width":717,"height":12}},{"id":"fb79a21b-cbf1-427f-b584-04c06c841f06","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be","page_number":128,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"b9346bc5-a6f0-44dd-b04e-ef8501f7c879","block_type":"box","text":"available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile","page_number":128,"box":{"x":116,"y":304,"width":770,"height":12}},{"id":"a66d5d6f-4c34-465a-9687-6a88be073287","block_type":"box","text":"or may decline shortly after the initial public offering.","page_number":128,"box":{"x":116,"y":320,"width":392,"height":12}},{"id":"4728ac3f-1805-4123-af7e-a1155c0e6e63","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These","page_number":128,"box":{"x":116,"y":351,"width":685,"height":12}},{"id":"3bfcf614-a996-4241-8e00-f02ebe231130","block_type":"box","text":"organizations will normally have more limited product lines, markets and financial resources and will be","page_number":128,"box":{"x":116,"y":366,"width":769,"height":12}},{"id":"ad9c6cc0-c53a-46af-a10f-1ddfac6bc07f","block_type":"box","text":"dependent upon a more limited management group than larger capitalized companies. In addition, it is","page_number":128,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"c4a138ba-34fe-4b5b-9b01-ff8999758cc0","block_type":"box","text":"more difficult to get information on smaller companies, which tend to be less well known, have shorter","page_number":128,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"3051455d-5862-4c6f-b25d-960346b996c9","block_type":"box","text":"operating histories, do not have significant ownership by large investors and are followed by relatively","page_number":128,"box":{"x":116,"y":413,"width":758,"height":12}},{"id":"40f4b5b4-4b35-45c7-bd2e-1fffcad88821","block_type":"box","text":"few securities analysts. The securities of smaller capitalized companies are often traded in the OTC","page_number":128,"box":{"x":116,"y":428,"width":744,"height":12}},{"id":"78ea3e9f-c45a-4614-9fcd-f1746ecddd14","block_type":"box","text":"markets and may have fewer market makers and wider price spreads. This may result in greater price","page_number":128,"box":{"x":117,"y":444,"width":760,"height":12}},{"id":"42333c57-40b8-4cb4-953b-c0b642f7d956","block_type":"box","text":"movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":128,"box":{"x":117,"y":459,"width":743,"height":12}},{"id":"2a121843-14b1-465a-b36b-f70c75e51551","block_type":"box","text":"more established companies.","page_number":128,"box":{"x":117,"y":475,"width":222,"height":12}},{"id":"10be6b81-ccb7-42a1-9f94-f96225706986","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks","page_number":128,"box":{"x":117,"y":506,"width":693,"height":12}},{"id":"0a0d3c98-7c1c-4f81-9704-8b0e7aedd46a","block_type":"box","text":"associated with investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds","page_number":128,"box":{"x":116,"y":521,"width":754,"height":12}},{"id":"f0fa4bb3-40c7-42ce-8f46-8593a3368140","block_type":"box","text":"may also invest in shares of private companies, which are subject to the risks of “Illiquid Investments”","page_number":128,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"ff1ea8b9-1a5b-4558-b117-3dc3e6176a19","block_type":"box","text":"and “Restricted Securities” described below.","page_number":128,"box":{"x":116,"y":552,"width":334,"height":10}},{"id":"a242d90c-62a9-484a-9d0c-b5f45613d314","block_type":"box","text":"Real Estate-Related Securities.","page_number":128,"box":{"x":116,"y":583,"width":232,"height":10}},{"id":"5829d857-cf53-43f9-b2de-c8cdfa84f216","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may","page_number":128,"box":{"x":349,"y":583,"width":535,"height":12}},{"id":"40e20b44-593e-4faa-9ad9-f951312cdc31","block_type":"box","text":"invest in equity securities of issuers that are principally engaged in the real estate industry. Such","page_number":128,"box":{"x":117,"y":599,"width":719,"height":12}},{"id":"d9aff068-2652-4388-be56-61a128a98b1b","block_type":"box","text":"investments are subject to certain risks associated with the ownership of real estate and with the real","page_number":128,"box":{"x":117,"y":614,"width":753,"height":12}},{"id":"34854aeb-9963-400f-9c53-de4ae94acd28","block_type":"box","text":"estate industry in general. 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Investments by","page_number":128,"box":{"x":117,"y":800,"width":755,"height":12}},{"id":"a53cbbf2-6ca0-4be0-8ed2-aca08911782c","block_type":"box","text":"a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":128,"box":{"x":116,"y":816,"width":750,"height":12}},{"id":"a2ff12af-699c-4a0c-9d79-b11513b2eeeb","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":128,"box":{"x":116,"y":831,"width":399,"height":12}},{"id":"37d2fa69-9371-4892-8509-41ade52fbe03","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as","page_number":128,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"0a8075e1-805f-49b2-b359-7c1a46a3966e","block_type":"box","text":"a result of a default on securities the Fund owns, the receipt of such income may adversely affect the","page_number":128,"box":{"x":116,"y":878,"width":755,"height":12}},{"id":"cbe10439-d9ef-4351-a7e5-6bfa6c940f23","block_type":"box","text":"II-34","page_number":128,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ff9b1625-2efb-480a-badd-322aa832e29c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":128,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d6da1eab-9175-4c07-94a3-a6e3479af396","block_type":"box","text":"Fund’s ability to retain its tax status as a regulated investment company because of certain income","page_number":129,"box":{"x":117,"y":87,"width":737,"height":12}},{"id":"e3b9e35f-1fec-4968-a630-21a11c8d3bf0","block_type":"box","text":"source requirements applicable to regulated investment companies under the Internal Revenue Code","page_number":129,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"8666024d-baa5-48d5-8615-9abbe1e4776f","block_type":"box","text":"of 1986, as amended (the “Code”).","page_number":129,"box":{"x":116,"y":118,"width":263,"height":12}},{"id":"c5345fbd-2caf-40ae-933b-123e16589332","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":129,"box":{"x":117,"y":151,"width":401,"height":12}},{"id":"ff14a44a-80f2-490e-8b29-fbf6ee68d396","block_type":"box","text":"Investment in smaller or emerging growth","page_number":129,"box":{"x":520,"y":151,"width":318,"height":12}},{"id":"02e434a6-25d0-42ff-bb13-3325a465760a","block_type":"box","text":"companies involves greater risk than is customarily associated with investments in more established","page_number":129,"box":{"x":116,"y":167,"width":749,"height":12}},{"id":"a824ae3f-a3e6-428f-8da7-42ffbd151ae1","block_type":"box","text":"companies. The securities of smaller or emerging growth companies may be subject to more abrupt or","page_number":129,"box":{"x":116,"y":182,"width":765,"height":12}},{"id":"d82ed615-6137-4cf4-aac6-00368a167a39","block_type":"box","text":"erratic market movements than larger, more established companies or the market average in general.","page_number":129,"box":{"x":116,"y":198,"width":761,"height":12}},{"id":"8b69aaf5-a269-469c-b05b-d7ee724f3f32","block_type":"box","text":"These companies may have limited product lines, markets or financial resources, or they may be","page_number":129,"box":{"x":116,"y":213,"width":723,"height":12}},{"id":"485996c1-4eae-480a-a855-645207507eb6","block_type":"box","text":"dependent on a limited management group.","page_number":129,"box":{"x":116,"y":229,"width":330,"height":12}},{"id":"df37edc1-19dd-48fe-bb45-db0cc00f963f","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be","page_number":129,"box":{"x":117,"y":262,"width":727,"height":12}},{"id":"935d61a9-58ad-4c73-af70-43815d61b165","block_type":"box","text":"considered speculative. Full development of these companies and trends frequently takes time.","page_number":129,"box":{"x":116,"y":277,"width":713,"height":12}},{"id":"9d66b9fd-cc5f-4057-8f8f-aa0389a15275","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional","page_number":129,"box":{"x":116,"y":310,"width":762,"height":12}},{"id":"453a2e59-1f64-447e-9b08-aa2c5e43e96e","block_type":"box","text":"securities exchange and may not be traded every day or in the volume typical of trading on a national","page_number":129,"box":{"x":116,"y":325,"width":757,"height":12}},{"id":"2a07ce0e-8ce2-4639-a8dd-2a583e5e77d1","block_type":"box","text":"securities exchange. As a result, the disposition by a Fund of portfolio securities to meet redemptions","page_number":129,"box":{"x":116,"y":341,"width":756,"height":12}},{"id":"2aa04cdb-3fe5-4e6d-b60f-cd8e5db6d978","block_type":"box","text":"or otherwise may require the Fund to make many small sales over a lengthy period of time, or to sell","page_number":129,"box":{"x":116,"y":356,"width":749,"height":12}},{"id":"966a1046-fec4-469b-aed3-e619433e05d8","block_type":"box","text":"these securities at a discount from market prices or during periods when, in Fund management’s","page_number":129,"box":{"x":116,"y":372,"width":722,"height":12}},{"id":"b1b8108b-529c-4fa0-a7ad-a0449d1a871f","block_type":"box","text":"judgment, such disposition is not desirable.","page_number":129,"box":{"x":115,"y":388,"width":326,"height":11}},{"id":"a8478d3b-3b3e-43a8-b804-2c2efbb70f91","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee","page_number":129,"box":{"x":116,"y":420,"width":714,"height":12}},{"id":"a6aee5fd-50b0-48fe-9445-9c7f276e71bd","block_type":"box","text":"successful investment results. Careful initial selection is particularly important in this area as many new","page_number":129,"box":{"x":116,"y":436,"width":770,"height":12}},{"id":"cccc03d5-34c0-456a-99c1-198dbe8ce3da","block_type":"box","text":"enterprises have promise but lack certain of the fundamental factors necessary to prosper. Investing in","page_number":129,"box":{"x":116,"y":451,"width":767,"height":12}},{"id":"4f140ff1-00c9-46f7-804f-8f991eedca22","block_type":"box","text":"small cap and emerging growth companies requires specialized research and analysis.","page_number":129,"box":{"x":116,"y":467,"width":651,"height":12}},{"id":"3b3464db-ead8-492e-9dfa-e49858ea1660","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into","page_number":129,"box":{"x":117,"y":500,"width":753,"height":12}},{"id":"209de370-b2d6-4835-a5d8-72739bd900b8","block_type":"box","text":"significant business enterprises. A Fund may invest in securities of small issuers in the relatively early","page_number":129,"box":{"x":116,"y":515,"width":759,"height":12}},{"id":"a1cb409d-759a-40f7-a34d-dbc0efd38810","block_type":"box","text":"stages of business development that have a new technology, a unique or proprietary product or","page_number":129,"box":{"x":116,"y":531,"width":714,"height":12}},{"id":"66c7ccdb-cbbe-4394-9eab-cad2249b8249","block_type":"box","text":"service, or a favorable market position.","page_number":129,"box":{"x":116,"y":546,"width":294,"height":12}},{"id":"55f21359-91bb-4a9a-8b66-440879432f3a","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":129,"box":{"x":117,"y":579,"width":757,"height":12}},{"id":"642f7033-0219-466f-b14d-aba78490ed7e","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying","page_number":129,"box":{"x":116,"y":595,"width":763,"height":12}},{"id":"4ee28c5c-7cf9-44ae-bb74-c920ca2efe3b","block_type":"box","text":"stages of their business development. The market valuation of small cap issuers tends to fluctuate","page_number":129,"box":{"x":116,"y":610,"width":734,"height":12}},{"id":"f6e722d8-836d-4e30-abab-795b34b02d73","block_type":"box","text":"during economic or market cycles.","page_number":129,"box":{"x":116,"y":626,"width":260,"height":12}},{"id":"8bd473f2-bf94-4c00-aa61-f022b5c126c5","block_type":"box","text":"Tracking Stocks.","page_number":129,"box":{"x":118,"y":659,"width":120,"height":12}},{"id":"2eeeef56-6acf-498e-96b5-68933fca3637","block_type":"box","text":"A tracking stock is a separate class of common stock whose value is linked to a","page_number":129,"box":{"x":240,"y":659,"width":601,"height":12}},{"id":"0110b3d0-f29e-43b9-8b0c-7fe0cbf844a8","block_type":"box","text":"specific business unit or operating division within a larger company and is designed to “track” the","page_number":129,"box":{"x":116,"y":674,"width":718,"height":12}},{"id":"7f293f59-288f-46e6-9341-f640ec9219d8","block_type":"box","text":"performance of such business unit or division. The tracking stock may pay dividends to shareholders","page_number":129,"box":{"x":117,"y":690,"width":746,"height":12}},{"id":"97fe3011-71a7-4aee-9ec4-7bcc046bd17a","block_type":"box","text":"independent of the parent company. The parent company, rather than the business unit or division,","page_number":129,"box":{"x":117,"y":705,"width":733,"height":12}},{"id":"ddd54285-3b2c-46bc-986c-3a22ddae520c","block_type":"box","text":"generally is the issuer of tracking stock. However, holders of the tracking stock may not have the same","page_number":129,"box":{"x":116,"y":721,"width":763,"height":12}},{"id":"6c21bb4a-7f44-4cbe-be24-14c191abf716","block_type":"box","text":"rights as holders of the company’s common stock.","page_number":129,"box":{"x":117,"y":736,"width":371,"height":12}},{"id":"e508bed4-0e11-4075-a651-4dd41198b2c6","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":129,"box":{"x":116,"y":769,"width":271,"height":12}},{"id":"35b84eb5-b5c6-42fc-952a-6a20935fca15","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes","page_number":129,"box":{"x":394,"y":769,"width":453,"height":12}},{"id":"5b67e54d-7258-40f4-88e4-7629388ffb0c","block_type":"box","text":"representing debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and","page_number":129,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"44c28c5d-e999-49f9-ac5c-6af9dd971b67","block_type":"box","text":"ETFs. An ETN’s returns are based on the performance of one or more underlying assets, reference","page_number":129,"box":{"x":117,"y":800,"width":737,"height":12}},{"id":"7085bf05-9f49-452a-bfbe-a5df42bf9f78","block_type":"box","text":"rates or indexes, minus fees and expenses. Similar to ETFs, ETNs are listed on an exchange and","page_number":129,"box":{"x":117,"y":816,"width":724,"height":12}},{"id":"d1d947e7-6416-405d-a0d6-413c063666d9","block_type":"box","text":"traded in the secondary market. However, unlike an ETF, an ETN can be held until the ETN’s maturity,","page_number":129,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"126472e3-0200-4c09-955d-de2dd8fee4db","block_type":"box","text":"at which time the issuer will pay a return linked to the performance of the specific asset, index or rate","page_number":129,"box":{"x":116,"y":847,"width":753,"height":12}},{"id":"f856a582-4cda-4320-a310-28f8bcf6c7bd","block_type":"box","text":"(“reference instrument”) to which the ETN is linked minus certain fees. Unlike regular bonds, ETNs do","page_number":129,"box":{"x":117,"y":862,"width":758,"height":12}},{"id":"639d68f3-7b82-44f9-a7fe-362e0d36cbea","block_type":"box","text":"not make periodic interest payments, and principal is not protected.","page_number":129,"box":{"x":117,"y":878,"width":503,"height":12}},{"id":"0995ac2e-3a3c-414e-90e3-51ef662b658a","block_type":"box","text":"II-35","page_number":129,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"fdd355ef-b2a6-44ff-9d91-d403816288f9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":129,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"739302f5-11a4-45e9-80a8-17a35ef48756","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and","page_number":130,"box":{"x":116,"y":87,"width":749,"height":12}},{"id":"d730a299-6ea8-4deb-9bef-843c230a627a","block_type":"box","text":"demand for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable","page_number":130,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"48cbf6bb-61d5-4134-a93b-2d159bf33502","block_type":"box","text":"interest rates, the performance of the reference instrument, changes in the issuer’s credit rating and","page_number":130,"box":{"x":117,"y":118,"width":745,"height":12}},{"id":"83501630-ca9d-458a-b905-ffaf2c2715d1","block_type":"box","text":"economic, legal, political or geographic events that affect the reference instrument. ETNs are subject to","page_number":130,"box":{"x":116,"y":134,"width":772,"height":12}},{"id":"3f3ecae8-a925-4647-a306-d47379a53af5","block_type":"box","text":"credit risk and the value of the ETN may drop due to a downgrade in an issuer’s credit rating, despite","page_number":130,"box":{"x":116,"y":149,"width":755,"height":12}},{"id":"50346652-fc81-4384-8fbc-acae5e2fe2bf","block_type":"box","text":"the underlying reference instrument remaining unchanged. When a Fund invests in ETNs, it will bear","page_number":130,"box":{"x":116,"y":165,"width":752,"height":12}},{"id":"4600abb6-ac0f-4436-9d6e-5b2c73c5572a","block_type":"box","text":"its proportionate share of any fees and expenses borne by the ETN.","page_number":130,"box":{"x":117,"y":180,"width":509,"height":12}},{"id":"d7893e11-f0f4-4c33-9f7d-64bf9f465e83","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference","page_number":130,"box":{"x":116,"y":212,"width":720,"height":12}},{"id":"0ba57e27-4498-41d3-90cd-c5bbf6f6ee9d","block_type":"box","text":"instrument. ETNs also incur certain expenses not incurred by their applicable reference instrument.","page_number":130,"box":{"x":117,"y":227,"width":740,"height":13}},{"id":"794e8624-5ab6-45ac-b260-2e3b67e947d6","block_type":"box","text":"Some ETNs that use leverage may, at times, be illiquid and","page_number":130,"box":{"x":116,"y":243,"width":446,"height":12}},{"id":"9c5e23df-a984-44b7-b3c8-dfcbe218a4a9","block_type":"box","text":"may be difficult to purchase or sell at a fair","page_number":130,"box":{"x":563,"y":243,"width":319,"height":12}},{"id":"e4a9e8f4-1a29-49bd-8224-5ca2f694f157","block_type":"box","text":"price. Levered ETNs are subject to the same risk as other instruments that use leverage in any form.","page_number":130,"box":{"x":117,"y":259,"width":751,"height":12}},{"id":"6a372c7f-07b2-4a30-87d6-d781ec956f89","block_type":"box","text":"While leverage allows for greater potential return, the potential for loss is also greater. Finally,","page_number":130,"box":{"x":116,"y":274,"width":700,"height":12}},{"id":"1600f1a9-4b33-4709-bb9d-3ed653cadd36","block_type":"box","text":"additional losses may be incurred if the investment loses value because, in addition to the money lost","page_number":130,"box":{"x":116,"y":290,"width":757,"height":12}},{"id":"c2f4e4d2-7a49-4c07-b67f-389e71640df9","block_type":"box","text":"on the investment, the loan still needs to be repaid.","page_number":130,"box":{"x":116,"y":305,"width":384,"height":12}},{"id":"9241cbb1-3750-4713-ad38-e39b3aa8184a","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its","page_number":130,"box":{"x":117,"y":337,"width":685,"height":12}},{"id":"00e43561-1392-4f7e-aea7-58eafdbba844","block_type":"box","text":"obligations, the value of the ETN may change due to a change in the issuer’s credit rating, despite no","page_number":130,"box":{"x":116,"y":352,"width":757,"height":13}},{"id":"fa957689-d9a9-40bc-99a5-7955628a3e6f","block_type":"box","text":"change in the underlying reference instrument. The market value of ETN shares may differ from the","page_number":130,"box":{"x":116,"y":368,"width":744,"height":12}},{"id":"84806daf-3311-48bf-bf01-c6e196685ba3","block_type":"box","text":"value of the reference instrument. This difference in price may be due to the fact that the supply and","page_number":130,"box":{"x":116,"y":384,"width":748,"height":12}},{"id":"16aaee40-0da9-4379-8679-c470cb32ff3a","block_type":"box","text":"demand in the market for ETN shares at any point in time is not always identical to the supply and","page_number":130,"box":{"x":116,"y":399,"width":732,"height":12}},{"id":"35e887cc-97d6-425e-94da-4b323fa8be0a","block_type":"box","text":"demand in the market for the assets underlying the reference instrument that the ETN seeks to track.","page_number":130,"box":{"x":116,"y":415,"width":755,"height":12}},{"id":"a7636b8f-7340-4c0b-a643-9ea5634a2dd3","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally","page_number":130,"box":{"x":116,"y":447,"width":761,"height":12}},{"id":"2b398ab4-47fa-4c7d-97cc-505ebc959903","block_type":"box","text":"meant to be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the","page_number":130,"box":{"x":117,"y":462,"width":728,"height":12}},{"id":"6e1dbc78-9fca-4a41-b7ad-0873c2b12998","block_type":"box","text":"availability of a secondary market. An investor in an ETN could lose some or all of the amount","page_number":130,"box":{"x":116,"y":477,"width":701,"height":13}},{"id":"ff30a3f8-dcd6-48bb-a659-b9fa1d93db46","block_type":"box","text":"invested.","page_number":130,"box":{"x":117,"y":493,"width":71,"height":10}},{"id":"e51f8fc6-25a4-46b2-a2a3-113ede093998","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a","page_number":130,"box":{"x":117,"y":525,"width":739,"height":12}},{"id":"f77a2a3a-d53e-4452-99f0-edb9647732df","block_type":"box","text":"court may not uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and","page_number":130,"box":{"x":116,"y":540,"width":742,"height":13}},{"id":"faefd837-cfa1-42e7-ae1d-98d641a388e7","block_type":"box","text":"character of income and gains derived by a Fund from investments in ETNs may be affected by future","page_number":130,"box":{"x":116,"y":556,"width":762,"height":12}},{"id":"d34a0449-de05-4ec1-8920-a964959726ba","block_type":"box","text":"legislation.","page_number":130,"box":{"x":117,"y":572,"width":83,"height":12}},{"id":"f07b7027-12b6-49b0-8ad1-2b0216a739da","block_type":"box","text":"Foreign Investments.","page_number":130,"box":{"x":116,"y":604,"width":174,"height":12}},{"id":"e789a02b-3aaf-4f10-b31a-8ad0e5d4713b","block_type":"box","text":"Foreign Investment Risks.","page_number":130,"box":{"x":116,"y":627,"width":193,"height":12}},{"id":"fd4495f9-f23b-4f12-9d02-45a8202b2ecd","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from","page_number":130,"box":{"x":310,"y":627,"width":540,"height":12}},{"id":"eb008e13-a5f3-4d8d-abc6-0cc8078e71d8","block_type":"box","text":"issuers located in emerging market countries. These securities may be denominated in U.S. dollars or","page_number":130,"box":{"x":117,"y":643,"width":760,"height":12}},{"id":"c91d41e6-bc61-4713-9311-57a031473d41","block_type":"box","text":"in a foreign currency. Investing in foreign securities involves risks not typically associated with investing","page_number":130,"box":{"x":117,"y":658,"width":770,"height":12}},{"id":"8ff58cb1-dc35-475a-934d-ed9f3703cc3b","block_type":"box","text":"in securities of companies organized and operated in the United States that can increase the chances","page_number":130,"box":{"x":117,"y":674,"width":754,"height":12}},{"id":"e9d88d1e-6d77-4def-a1b5-dac90b1f6aec","block_type":"box","text":"that a Fund will lose money.","page_number":130,"box":{"x":116,"y":689,"width":207,"height":12}},{"id":"52374d2f-51da-44e1-abc0-9faaadcebab2","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be","page_number":130,"box":{"x":116,"y":721,"width":757,"height":12}},{"id":"c3eeb4e3-4d26-46a2-840b-d5e80aa8341a","block_type":"box","text":"foreign securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are","page_number":130,"box":{"x":116,"y":737,"width":761,"height":12}},{"id":"cc90ab6e-d3af-4f63-838d-1869054dc728","block_type":"box","text":"conducted from the U.S., (ii) the company’s equity securities trade principally on a U.S. stock","page_number":130,"box":{"x":116,"y":752,"width":689,"height":12}},{"id":"c4ecb296-9edb-48e3-bd73-b7fed1147c06","block_type":"box","text":"exchange, (iii) the company does a substantial amount of business in the U.S. or (iv) the issuer of","page_number":130,"box":{"x":116,"y":768,"width":725,"height":12}},{"id":"87c08b1a-0fa4-4f31-a789-3d70fd851539","block_type":"box","text":"securities is included in the Fund’s primary U.S. benchmark index.","page_number":130,"box":{"x":116,"y":783,"width":490,"height":12}},{"id":"6945c5bc-7d45-4d46-a86b-1c4976e863bc","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations","page_number":130,"box":{"x":117,"y":815,"width":721,"height":12}},{"id":"c83fb1ae-cb08-4cc5-8aa1-012b14fa1b16","block_type":"box","text":"issued or guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities","page_number":130,"box":{"x":117,"y":831,"width":767,"height":12}},{"id":"a519d094-b3a6-4a89-8c5a-b3beff0f73a7","block_type":"box","text":"or political subdivisions, including a foreign state, province or municipality; (b) debt obligations of","page_number":130,"box":{"x":116,"y":846,"width":720,"height":12}},{"id":"b20f2576-3dba-42ae-8f9c-e6e264691bf9","block_type":"box","text":"supranational organizations; (c) debt obligations of foreign banks and bank holding companies;","page_number":130,"box":{"x":116,"y":862,"width":710,"height":12}},{"id":"5f936431-2579-462f-8fb0-e392bba18313","block_type":"box","text":"(d) debt obligations of domestic banks and corporations issued in foreign currencies; (e) debt","page_number":130,"box":{"x":117,"y":877,"width":694,"height":12}},{"id":"27c6ae97-58f2-4019-bde7-d69e128564c5","block_type":"box","text":"II-36","page_number":130,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"97a06833-5693-42f6-80ec-a2ea1526d157","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":130,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ca1b7977-a42c-486f-b1fa-c3e98ce1741e","block_type":"box","text":"obligations denominated in the Euro; and (f) foreign corporate debt securities and commercial paper.","page_number":131,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"1fad711d-6538-41bc-80d7-fb867e599dba","block_type":"box","text":"Such securities may include loan participations and assignments, convertible securities and","page_number":131,"box":{"x":116,"y":102,"width":684,"height":13}},{"id":"4461bd25-cca0-43d4-9564-54ffd3296304","block_type":"box","text":"zero-coupon securities.","page_number":131,"box":{"x":116,"y":118,"width":178,"height":12}},{"id":"d918d720-87c1-416b-95f4-c60be151bbf6","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign","page_number":131,"box":{"x":117,"y":149,"width":729,"height":12}},{"id":"6e9a2e7b-9ae6-4c42-b581-0bb3707c9776","block_type":"box","text":"withholding taxes.","page_number":131,"box":{"x":116,"y":165,"width":138,"height":12}},{"id":"88609e05-dc43-496e-9025-0138a60448bc","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign","page_number":131,"box":{"x":116,"y":196,"width":715,"height":12}},{"id":"43947f08-84ce-4b98-95bc-9fb9e0c52f0d","block_type":"box","text":"exchanges or in foreign markets that are closed when the securities exchange on which the Fund’s","page_number":131,"box":{"x":116,"y":211,"width":740,"height":12}},{"id":"402a7d61-3d8f-4049-9a83-1ad7b42ef9e6","block_type":"box","text":"shares trade is open, there are likely to be deviations between the current price of such an underlying","page_number":131,"box":{"x":116,"y":227,"width":758,"height":12}},{"id":"69f3a3be-9301-4d42-bc21-796d7224ae4e","block_type":"box","text":"security and the last quoted price for the underlying security (i.e., the Fund’s quote from the closed","page_number":131,"box":{"x":116,"y":242,"width":736,"height":12}},{"id":"019e33b0-8656-466c-9432-353dfee5df67","block_type":"box","text":"foreign market). The impact of a closed foreign market on a Fund is likely to be greater where a large","page_number":131,"box":{"x":116,"y":258,"width":755,"height":12}},{"id":"f6fa2357-bfb9-4f8c-a473-66e436d9fa4a","block_type":"box","text":"portion of the Fund’s underlying securities or other instruments trade on that closed foreign market or","page_number":131,"box":{"x":117,"y":273,"width":754,"height":12}},{"id":"88b44516-9114-4d54-a772-b35b623e1157","block_type":"box","text":"when the foreign market is closed for unscheduled reasons. These deviations may result in premiums","page_number":131,"box":{"x":116,"y":289,"width":759,"height":12}},{"id":"5468de49-be38-4db9-bc65-94e0941a7309","block_type":"box","text":"or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":131,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"fb8b2bf1-0471-41f5-a2a7-0102d1b7b684","block_type":"box","text":"Foreign Market Risk.","page_number":131,"box":{"x":116,"y":335,"width":152,"height":12}},{"id":"de375898-fd44-49d0-bdac-0f27dfc2e580","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more","page_number":131,"box":{"x":269,"y":335,"width":521,"height":12}},{"id":"07383ed2-c36f-4dac-80b5-cddd34899085","block_type":"box","text":"diversification than a Fund that invests only in the United States because securities traded on foreign","page_number":131,"box":{"x":116,"y":351,"width":746,"height":12}},{"id":"01d103a9-727d-4f8d-97e8-80c07c2f36b6","block_type":"box","text":"markets have often (though not always) performed differently from securities traded in the United","page_number":131,"box":{"x":117,"y":366,"width":715,"height":12}},{"id":"e15de29b-390f-4f63-9116-89eff4c615ec","block_type":"box","text":"States. However, such investments often involve risks not present in U.S. investments that can increase","page_number":131,"box":{"x":116,"y":382,"width":769,"height":12}},{"id":"5662f985-66ea-4410-96d8-fe5a7aef6fa8","block_type":"box","text":"the chances that a Fund will lose money. In particular, a Fund is subject to the risk that, because there","page_number":131,"box":{"x":116,"y":397,"width":756,"height":12}},{"id":"dac54635-d8e1-4ad4-aef4-034d27b1bf10","block_type":"box","text":"are generally fewer investors on foreign exchanges and a smaller number of shares traded each day, it","page_number":131,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"39d9558d-088c-488b-9fd0-1be6f4bfb45a","block_type":"box","text":"may be difficult for the Fund to buy and sell securities on those exchanges. In addition, prices of foreign","page_number":131,"box":{"x":117,"y":428,"width":763,"height":12}},{"id":"b1560a2d-b9d6-4dc8-80b7-86b8c3deacaf","block_type":"box","text":"securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":131,"box":{"x":116,"y":444,"width":719,"height":12}},{"id":"9bb1d844-fe8d-42ed-a612-c9a7bcaebf6f","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of","page_number":131,"box":{"x":116,"y":459,"width":727,"height":12}},{"id":"a0c58eb0-5580-46c7-a15a-7e91ae089461","block_type":"box","text":"punitive taxes or tariffs. In addition, economic conditions, such as volatile currency exchange rates and","page_number":131,"box":{"x":117,"y":475,"width":759,"height":12}},{"id":"92bde698-03c5-4882-8d77-d431fb6cd07b","block_type":"box","text":"interest rates, political events, military action and other conditions may, without prior warning, lead to the","page_number":131,"box":{"x":117,"y":490,"width":770,"height":12}},{"id":"6c94eec5-a5f9-491d-a5ed-0d09aef658c3","block_type":"box","text":"governments of certain countries, or the U.S. Government with respect to certain countries, prohibiting","page_number":131,"box":{"x":116,"y":506,"width":756,"height":12}},{"id":"b01cb548-1ca5-4650-b886-75866ebd7a78","block_type":"box","text":"or imposing substantial restrictions through capital controls and/or sanctions on foreign investing in the","page_number":131,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"3cf64e38-e143-46a4-b306-54e42462af67","block_type":"box","text":"capital markets or certain industries in those countries. Capital controls and/or sanctions may include","page_number":131,"box":{"x":116,"y":537,"width":746,"height":12}},{"id":"4efbc43c-5ba3-45cc-b307-443912292ceb","block_type":"box","text":"the prohibition of, or restrictions on, the ability to own or transfer currency, securities, derivatives or","page_number":131,"box":{"x":116,"y":552,"width":730,"height":12}},{"id":"091eacb9-b92d-4803-a63e-1e369080b0b3","block_type":"box","text":"other assets and may also include retaliatory actions of one government against another government,","page_number":131,"box":{"x":116,"y":568,"width":752,"height":12}},{"id":"69abd117-d12c-4850-b589-7e6650b164dc","block_type":"box","text":"such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":131,"box":{"x":116,"y":583,"width":758,"height":12}},{"id":"49c65574-d02c-4129-ab55-2ec59200245d","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the","page_number":131,"box":{"x":116,"y":599,"width":738,"height":12}},{"id":"5ee7ad1b-31ea-4b7e-899a-52b6a2022659","block_type":"box","text":"ability to transfer the Fund’s assets or income back into the United States, and could negatively impact","page_number":131,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"6342f770-0044-4d1d-bd08-97a386c5bec5","block_type":"box","text":"the value and/or liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the","page_number":131,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"d7e1291b-7ce3-415a-a299-02e4c0eff6c4","block_type":"box","text":"Fund to decline in value. Other potential foreign market risks include exchange controls, difficulties in","page_number":131,"box":{"x":117,"y":645,"width":745,"height":12}},{"id":"d21ef40c-7d82-44f9-8985-a130d8ffa9a5","block_type":"box","text":"pricing securities, defaults on foreign government securities, difficulties in enforcing favorable legal","page_number":131,"box":{"x":117,"y":661,"width":722,"height":12}},{"id":"f2c650fe-7feb-48b8-925c-cb221177cd48","block_type":"box","text":"judgments in foreign courts, and political and social conditions, such as diplomatic relations,","page_number":131,"box":{"x":115,"y":676,"width":674,"height":12}},{"id":"c9f326d8-f122-4b66-a9f5-8e346d3af031","block_type":"box","text":"confiscatory taxation, expropriation, limitation on the removal of funds or assets, or imposition of (or","page_number":131,"box":{"x":116,"y":692,"width":730,"height":12}},{"id":"d5af4f31-d6bc-4e69-962b-cb47d4c02210","block_type":"box","text":"change in) exchange control regulations. Legal remedies available to investors in certain foreign","page_number":131,"box":{"x":116,"y":707,"width":705,"height":12}},{"id":"9adf444c-dbee-40e5-bb4b-4d9011ac23b1","block_type":"box","text":"countries may be less extensive than those available to investors in the United States or other foreign","page_number":131,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"99a33547-1c7d-45d8-ab8c-e44776cd595a","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the","page_number":131,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"d6eaa8b5-3c7e-4c86-8e12-4a927cedb345","block_type":"box","text":"United States or abroad could result in appreciation or depreciation of portfolio securities and could","page_number":131,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"14134f4e-a871-41f2-9907-bc66247d0831","block_type":"box","text":"favorably or adversely affect a Fund’s operations.","page_number":131,"box":{"x":116,"y":769,"width":362,"height":12}},{"id":"6a3a32a3-0c96-4a54-9ebd-5a5024499b0b","block_type":"box","text":"Foreign Economy Risk.","page_number":131,"box":{"x":116,"y":800,"width":172,"height":12}},{"id":"fb93ee0a-16e1-400b-ae43-b8ddbd7b342f","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with","page_number":131,"box":{"x":295,"y":800,"width":579,"height":12}},{"id":"97fc830c-1506-4789-ac73-d991a1078d51","block_type":"box","text":"that of the United States with respect to such issues as growth of gross national product, reinvestment","page_number":131,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"06cfc608-fac5-49c3-9089-7c9e3baccfb1","block_type":"box","text":"of capital, resources, and balance of payments position. Certain such economies may rely heavily on","page_number":131,"box":{"x":116,"y":831,"width":754,"height":12}},{"id":"8f53d2a3-523b-4817-9d2f-05b2fdc29535","block_type":"box","text":"particular industries or foreign capital and are more vulnerable to diplomatic developments, the","page_number":131,"box":{"x":117,"y":847,"width":707,"height":12}},{"id":"be9f7137-28d4-4969-9ba3-d022860a06fb","block_type":"box","text":"imposition of economic sanctions against a particular country or countries, changes in international","page_number":131,"box":{"x":117,"y":862,"width":737,"height":12}},{"id":"be976b77-c549-44ac-9367-c3bb1ca1eee2","block_type":"box","text":"trading patterns, trade barriers, and other protectionist or retaliatory measures.","page_number":131,"box":{"x":116,"y":878,"width":589,"height":12}},{"id":"3be09c2f-cc09-416a-be8e-52791fa2487b","block_type":"box","text":"II-37","page_number":131,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"71e9661e-cea0-41d9-9e2c-372f99fa9fa8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":131,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"107d3b69-c98b-4028-a9b7-810709c574b9","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":132,"box":{"x":117,"y":87,"width":257,"height":12}},{"id":"307321cf-c8e1-4b35-8e3f-283a1e0a399c","block_type":"box","text":"Because foreign securities generally are denominated and pay","page_number":132,"box":{"x":376,"y":87,"width":475,"height":12}},{"id":"501fe11e-dfdd-41c5-bf7c-592492f8c24b","block_type":"box","text":"dividends or interest in foreign currencies, the value of a Fund that invests in foreign securities as","page_number":132,"box":{"x":116,"y":102,"width":727,"height":13}},{"id":"dcbde17d-3210-4d83-a77f-7002da3e2586","block_type":"box","text":"measured in U.S. dollars will be affected favorably or unfavorably by changes in exchange rates.","page_number":132,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"09a0e0b5-25d8-4831-b8a9-535547561e69","block_type":"box","text":"Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in","page_number":132,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"09d5431e-2a4e-4d88-97ac-05ca49475156","block_type":"box","text":"that currency loses value because the currency is worth fewer U.S. dollars. Conversely, when the U.S.","page_number":132,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"2127aec0-bebe-49ca-9124-653d7f968837","block_type":"box","text":"dollar decreases in value against a foreign currency, a security denominated in that currency gains","page_number":132,"box":{"x":116,"y":165,"width":737,"height":12}},{"id":"5fe4e2eb-f696-4e2c-a2ba-930db41c506b","block_type":"box","text":"value because the currency is worth more U.S. dollars. This risk, generally known as “currency risk,”","page_number":132,"box":{"x":116,"y":180,"width":749,"height":12}},{"id":"199b45cb-2733-451a-80ee-b9137d648355","block_type":"box","text":"means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will","page_number":132,"box":{"x":117,"y":196,"width":738,"height":12}},{"id":"72a637a9-e495-4fd3-b456-7fea27816972","block_type":"box","text":"increase those returns. Currency exchange rates can also be affected unpredictably by intervention by","page_number":132,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"8a5c5b55-7326-44fc-903f-43e6dbf261d7","block_type":"box","text":"U.S. or foreign governments or central banks, or the failure to intervene, or buy currency controls or","page_number":132,"box":{"x":117,"y":227,"width":743,"height":12}},{"id":"226cac58-7cbe-46f7-a7cb-87e400c3d044","block_type":"box","text":"political developments in the United States or abroad.","page_number":132,"box":{"x":117,"y":242,"width":402,"height":12}},{"id":"fa656dcc-e67f-4d55-becc-295f28c466b7","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":132,"box":{"x":117,"y":269,"width":487,"height":12}},{"id":"c99fd56a-29cd-46ea-82a7-b94425887527","block_type":"box","text":"Many foreign governments","page_number":132,"box":{"x":606,"y":269,"width":208,"height":12}},{"id":"d2acf89b-c6e7-489e-8043-3eadcf1ad388","block_type":"box","text":"supervise and regulate stock exchanges, brokers and the sale of securities less than does the United","page_number":132,"box":{"x":116,"y":285,"width":756,"height":12}},{"id":"142543a9-72a0-4972-b8dc-fb01889a891f","block_type":"box","text":"States. Some countries may not have laws to protect investors comparable to the U.S. securities laws.","page_number":132,"box":{"x":116,"y":300,"width":765,"height":12}},{"id":"26d5492d-3695-4dfb-ba4f-9f55c993d20d","block_type":"box","text":"For example, some foreign countries may have no laws or rules against insider trading. Insider trading","page_number":132,"box":{"x":117,"y":316,"width":762,"height":12}},{"id":"c622aeec-4e04-456c-8af9-bdbd5abcd16b","block_type":"box","text":"occurs when a person buys or sells a company’s securities based on nonpublic information about that","page_number":132,"box":{"x":116,"y":331,"width":760,"height":12}},{"id":"d73e1f3b-8876-4711-b42c-f2136eeb6fe8","block_type":"box","text":"company. Accounting standards in other countries are not necessarily the same as in the United","page_number":132,"box":{"x":116,"y":347,"width":719,"height":12}},{"id":"21781891-f0db-42a1-afc9-ba40623b6352","block_type":"box","text":"States. If the accounting standards in another country do not require as much detail as U.S. accounting","page_number":132,"box":{"x":116,"y":362,"width":771,"height":12}},{"id":"9460615e-a445-43d1-a2c6-83177e254c6d","block_type":"box","text":"standards, it may be harder for Fund management to completely and accurately determine a","page_number":132,"box":{"x":116,"y":378,"width":691,"height":12}},{"id":"f718ef7b-2fb1-4f1f-8f1f-102c6c4c12d0","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past","page_number":132,"box":{"x":116,"y":393,"width":722,"height":12}},{"id":"65f8564c-10aa-42ff-9dc2-09ac180838e8","block_type":"box","text":"imposed restrictions, through penalties and otherwise, on foreign investments by U.S. investors such","page_number":132,"box":{"x":117,"y":409,"width":752,"height":12}},{"id":"62aed297-3722-4ab1-97b5-4d748c028b44","block_type":"box","text":"as the Fund. If such restrictions should be reinstituted, it might become necessary for the Fund to","page_number":132,"box":{"x":116,"y":424,"width":727,"height":12}},{"id":"e035fe13-ac51-4518-a68a-15932a80f0bf","block_type":"box","text":"invest all or substantially all of its assets in U.S. securities. Also, brokerage commissions and other","page_number":132,"box":{"x":117,"y":440,"width":737,"height":12}},{"id":"5e4eb389-214e-438a-98c1-fc10b2dd7988","block_type":"box","text":"costs of buying or selling securities often are higher in foreign countries than they are in the United","page_number":132,"box":{"x":116,"y":455,"width":736,"height":12}},{"id":"49f346d0-a207-48d1-8eb9-169e1826e8cc","block_type":"box","text":"States. This reduces the amount the Fund can earn on its investments.","page_number":132,"box":{"x":116,"y":471,"width":532,"height":9}},{"id":"855127a7-6a17-4e33-8cce-8e350267cae3","block_type":"box","text":"Certain Risks of Holding Fund Assets Outside the United States.","page_number":132,"box":{"x":117,"y":498,"width":477,"height":12}},{"id":"01646d46-a712-4d6c-8236-a87599a6d45d","block_type":"box","text":"A Fund generally holds its foreign","page_number":132,"box":{"x":596,"y":498,"width":259,"height":12}},{"id":"28921934-f6b6-4d9d-9782-21d9b787e58e","block_type":"box","text":"securities and cash in foreign banks and securities depositories. Some foreign banks and securities","page_number":132,"box":{"x":116,"y":513,"width":743,"height":12}},{"id":"7db15fb1-65cd-4d6f-84e7-dc4f018e55fd","block_type":"box","text":"depositories may be recently organized or new to the foreign custody business. In addition, there may","page_number":132,"box":{"x":116,"y":529,"width":760,"height":12}},{"id":"a2442e23-df0e-4b3b-ab76-e33539c2d2d1","block_type":"box","text":"be limited or no regulatory oversight over their operations. Also, the laws of certain countries may put","page_number":132,"box":{"x":117,"y":544,"width":754,"height":12}},{"id":"0de08dbc-1428-4b2f-aebf-4d95f40e282e","block_type":"box","text":"limits on a Fund’s ability to recover its assets if a foreign bank or depository or issuer of a security or","page_number":132,"box":{"x":117,"y":560,"width":747,"height":12}},{"id":"488cb861-bbbf-406c-aae8-8648cbdd7a30","block_type":"box","text":"any of their agents goes bankrupt. In addition, it is often more expensive for a Fund to buy, sell and","page_number":132,"box":{"x":116,"y":575,"width":741,"height":12}},{"id":"016ce54d-21f1-459f-9406-07233bc2ebb1","block_type":"box","text":"hold securities in certain foreign markets than in the United States. The increased expense of investing","page_number":132,"box":{"x":117,"y":591,"width":768,"height":12}},{"id":"e15395c8-51fd-4cdc-a18d-1cb13dce3074","block_type":"box","text":"in foreign markets reduces the amount a Fund can earn on its investments and typically results in a","page_number":132,"box":{"x":117,"y":606,"width":741,"height":12}},{"id":"c07d765a-f63f-48cc-97da-a00c8de01326","block_type":"box","text":"higher operating expense ratio for the Fund as compared to investment companies that invest only in","page_number":132,"box":{"x":117,"y":622,"width":754,"height":12}},{"id":"746d19da-155d-473b-9813-9788c0baf1ed","block_type":"box","text":"the United States.","page_number":132,"box":{"x":116,"y":637,"width":138,"height":10}},{"id":"d14b9c5c-9325-43c9-ab05-a89d54b94533","block_type":"box","text":"Publicly Available Information.","page_number":132,"box":{"x":116,"y":665,"width":222,"height":12}},{"id":"d03c86f3-0c84-45aa-837f-90b5180b082a","block_type":"box","text":"In general, less information is publicly available with respect to foreign","page_number":132,"box":{"x":346,"y":665,"width":518,"height":12}},{"id":"e1022250-593e-46c5-8116-90661c930ba9","block_type":"box","text":"issuers than is available with respect to U.S. companies. Most foreign companies are also not subject","page_number":132,"box":{"x":117,"y":680,"width":753,"height":12}},{"id":"e9b421ae-59db-4d47-aee9-28fbdf4d4231","block_type":"box","text":"to the uniform accounting and financial reporting requirements applicable to issuers in the United","page_number":132,"box":{"x":116,"y":696,"width":717,"height":12}},{"id":"e24a67df-577f-4eb5-a6fa-6f139c8bea32","block_type":"box","text":"States. While the volume of transactions effected on foreign stock exchanges has increased in recent","page_number":132,"box":{"x":116,"y":711,"width":753,"height":12}},{"id":"ee8c90c9-e7d2-47db-ba94-6203b606a5cf","block_type":"box","text":"years, it remains appreciably below that of the New York Stock Exchange. Accordingly, a Fund’s","page_number":132,"box":{"x":116,"y":727,"width":716,"height":12}},{"id":"eab91696-74bf-4a2f-9524-e6fe49a423a5","block_type":"box","text":"foreign investments may be less liquid than, and their prices may be more volatile than, comparable","page_number":132,"box":{"x":116,"y":742,"width":740,"height":12}},{"id":"9f3924d4-35ba-4de3-a2f7-5ce77ca72b17","block_type":"box","text":"investments in securities in U.S. companies. In addition, there is generally less government supervision","page_number":132,"box":{"x":117,"y":758,"width":765,"height":12}},{"id":"2b117873-f19f-49dd-baaf-f70ef1c9d7df","block_type":"box","text":"and regulation of securities exchanges, brokers and issuers in foreign countries than in the United","page_number":132,"box":{"x":116,"y":773,"width":726,"height":12}},{"id":"1895ff95-a933-4def-b034-72d20fa9b741","block_type":"box","text":"States.","page_number":132,"box":{"x":116,"y":789,"width":51,"height":9}},{"id":"d1f6b631-6a9d-4d13-84d2-2392aaa2fd2b","block_type":"box","text":"Settlement Risk.","page_number":132,"box":{"x":117,"y":816,"width":120,"height":9}},{"id":"f91c3915-7903-49ad-8605-dd4e512de13a","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly","page_number":132,"box":{"x":244,"y":816,"width":606,"height":12}},{"id":"2211fe32-fc27-4475-8600-23b41b8970b1","block_type":"box","text":"from those in the United States. Supervisory authorities may also be unable to apply standards which","page_number":132,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"4f303af4-f993-46a2-9478-9cda4bb4dfdb","block_type":"box","text":"are comparable with those in the United States. Foreign settlement procedures and trade regulations","page_number":132,"box":{"x":116,"y":847,"width":754,"height":12}},{"id":"23a2d647-beaf-4d30-9f11-eb2c2de327e0","block_type":"box","text":"also may involve certain risks (such as delays in payment for or delivery of securities) not typically","page_number":132,"box":{"x":116,"y":862,"width":731,"height":12}},{"id":"8dd84871-083d-41bb-a622-d01cb2d51298","block_type":"box","text":"generated by the settlement of U.S. investments.","page_number":132,"box":{"x":116,"y":878,"width":369,"height":12}},{"id":"4f9f3515-d4e2-42f8-b1a4-a71287c5d6ec","block_type":"box","text":"II-38","page_number":132,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"fbd01e17-595c-4c40-a4c3-975ca9c7e5db","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":132,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0e1c80e4-9413-4520-a3be-f02149cf749d","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable,","page_number":133,"box":{"x":117,"y":87,"width":710,"height":12}},{"id":"0d740ca5-5e62-4944-b5bd-4c664d103de2","block_type":"box","text":"increasing the risk of delayed settlements or losses of security certificates in markets that still rely on","page_number":133,"box":{"x":117,"y":102,"width":750,"height":13}},{"id":"fe6f4803-8d12-46b3-9821-4c70748cbea8","block_type":"box","text":"physical settlement. Settlements in certain foreign countries at times have not kept pace with the","page_number":133,"box":{"x":117,"y":118,"width":720,"height":12}},{"id":"7fba3b56-c817-49ab-b7a9-40e4896f0ed6","block_type":"box","text":"number of securities transactions; these problems may make it difficult for a Fund to carry out","page_number":133,"box":{"x":117,"y":134,"width":698,"height":12}},{"id":"4af328ff-8255-490e-a77e-68bfae83d629","block_type":"box","text":"transactions. If a Fund cannot settle or is delayed in settling a purchase of securities, it may miss","page_number":133,"box":{"x":116,"y":149,"width":723,"height":12}},{"id":"1dc89cbb-f59e-4c19-8300-6ec86016fc04","block_type":"box","text":"attractive investment opportunities and certain of its assets may be uninvested with no return earned","page_number":133,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"402c1074-975e-4606-8236-64cbea2ce30e","block_type":"box","text":"thereon for some period. If a Fund cannot settle or is delayed in settling a sale of securities, it may lose","page_number":133,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"06c95ac5-98cf-4178-8b61-73f1267379bb","block_type":"box","text":"money if the value of the security then declines or, if it has contracted to sell the security to another","page_number":133,"box":{"x":117,"y":196,"width":739,"height":12}},{"id":"a24619c7-33bc-4083-84dd-5ae67ad06756","block_type":"box","text":"party, the Fund could be liable to that party for any losses incurred.","page_number":133,"box":{"x":117,"y":211,"width":501,"height":12}},{"id":"a2dd4591-cc3d-4b8b-9367-0d2c4b7bdfed","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing","page_number":133,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"6b5d481c-39db-49f0-b7cc-5b89b49b39bb","block_type":"box","text":"claims may arise in respect of securities held by or to be transferred to a Fund. Compensation","page_number":133,"box":{"x":116,"y":258,"width":703,"height":12}},{"id":"5d51bd70-e7bc-421d-9ac7-97b4ed776cbe","block_type":"box","text":"schemes may not exist or may otherwise be limited or inadequate to meet the Fund’s claims in case of","page_number":133,"box":{"x":116,"y":273,"width":766,"height":12}},{"id":"d69004fb-c88a-41a3-a3ca-cace8572e723","block_type":"box","text":"such event.","page_number":133,"box":{"x":116,"y":289,"width":90,"height":9}},{"id":"5420201c-2045-4e12-89ab-67b50f9881cb","block_type":"box","text":"Sovereign Debt.","page_number":133,"box":{"x":117,"y":320,"width":118,"height":12}},{"id":"f73bb371-b585-4bc6-9ebc-c3fbfc266e24","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental","page_number":133,"box":{"x":236,"y":320,"width":616,"height":12}},{"id":"8271d318-2183-49fc-8fdd-1892a2586fac","block_type":"box","text":"entity that controls the repayment of sovereign debt may not be able or willing to repay the principal","page_number":133,"box":{"x":116,"y":335,"width":743,"height":12}},{"id":"0646db97-2d0c-46fd-85cb-93c81acc58cf","block_type":"box","text":"and/or interest when due in accordance with the terms of such debt. A governmental entity’s","page_number":133,"box":{"x":116,"y":351,"width":689,"height":12}},{"id":"fa344b2f-6651-4c2b-ad34-436f4b24f549","block_type":"box","text":"willingness or ability to repay principal and interest due in a timely manner may be affected by, among","page_number":133,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"d6e8b3fd-238e-4599-8ea6-24aa28953a7f","block_type":"box","text":"other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient","page_number":133,"box":{"x":116,"y":382,"width":721,"height":12}},{"id":"03126348-7248-4f58-a29c-7fcb3e332e5c","block_type":"box","text":"foreign exchange on the date a payment is due, the relative size of the debt service burden to the","page_number":133,"box":{"x":116,"y":397,"width":728,"height":12}},{"id":"ce7d919e-0bcc-4de8-86d0-15a402dd4bbe","block_type":"box","text":"economy as a whole, the governmental entity’s policy towards the International Monetary Fund and the","page_number":133,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"2d442b65-3b9a-44c1-af3d-4e1ff948912e","block_type":"box","text":"political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":133,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"9811cb9a-9bb4-451b-8b0f-933f59f9f6c1","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others","page_number":133,"box":{"x":116,"y":444,"width":738,"height":12}},{"id":"c571e03f-552c-4b88-b557-0fca12db685a","block_type":"box","text":"abroad to reduce principal and interest arrearages on their debt. The commitment on the part of these","page_number":133,"box":{"x":116,"y":459,"width":761,"height":12}},{"id":"c609ea78-bdcb-469e-88ac-9b5fd4798f50","block_type":"box","text":"governments, agencies and others to make such disbursements may be conditioned on the","page_number":133,"box":{"x":116,"y":475,"width":684,"height":12}},{"id":"ed986d9c-80c5-45d9-bb25-654b1dc0d5dd","block_type":"box","text":"implementation of economic reforms and/or economic performance and the timely service of such","page_number":133,"box":{"x":117,"y":490,"width":730,"height":12}},{"id":"3c05b1c4-2f1e-4098-87a9-2a959178f29a","block_type":"box","text":"debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance","page_number":133,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"cd102d90-df8d-41c2-be90-c9c8aa93ad22","block_type":"box","text":"or repay principal or interest when due may result in the cancellation of such third parties’","page_number":133,"box":{"x":116,"y":521,"width":668,"height":12}},{"id":"c3aca1e8-6ebd-4b35-9d44-c3ef2f9267f8","block_type":"box","text":"commitments to lend funds to the governmental entity, which may further impair such debtor’s ability or","page_number":133,"box":{"x":116,"y":537,"width":769,"height":12}},{"id":"e70835dd-0049-4b0e-8e47-f45169ba7a80","block_type":"box","text":"willingness to timely service its debts. Consequently, governmental entities may default on their","page_number":133,"box":{"x":116,"y":552,"width":713,"height":12}},{"id":"5de8f4fd-9bb4-4dab-9f02-e3a61524a792","block_type":"box","text":"sovereign debt.","page_number":133,"box":{"x":116,"y":568,"width":119,"height":12}},{"id":"c95f95a2-e0d9-4a15-a8d7-670b00a6856d","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to","page_number":133,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"d588b436-e49f-4ed4-afd9-8aaf25bfe385","block_type":"box","text":"extend further loans to governmental entities. In the event of a default by a governmental entity, there","page_number":133,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"ad91cd7e-724a-48e5-ac42-cc9525f35792","block_type":"box","text":"may be few or no effective legal remedies for collecting on such debt.","page_number":133,"box":{"x":117,"y":630,"width":519,"height":12}},{"id":"4af19ecd-8995-4221-956a-f94f06baa902","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":133,"box":{"x":118,"y":661,"width":230,"height":12}},{"id":"c6bcea0e-487d-4875-89c7-0ab0dc7b6835","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on","page_number":133,"box":{"x":349,"y":661,"width":469,"height":12}},{"id":"a914cdbb-89f4-4194-8bba-2c31d2be2e1c","block_type":"box","text":"dividend and interest income (if any) received from issuers in certain countries and capital gains on the","page_number":133,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"3960b234-2b5b-4cac-8479-bd1f9a54c98f","block_type":"box","text":"disposition of stocks or securities where such withholding tax reclaim is possible. Whether or when a","page_number":133,"box":{"x":116,"y":692,"width":745,"height":12}},{"id":"9dd9315b-338a-46d7-aef6-8de51ba47315","block_type":"box","text":"Fund will receive a withholding tax refund is within the control of the tax authorities in such countries.","page_number":133,"box":{"x":117,"y":707,"width":745,"height":12}},{"id":"15a0d9d6-c506-4985-8fdf-3593999001e9","block_type":"box","text":"Where a Fund expects to recover withholding taxes, the net asset value of the Fund generally includes","page_number":133,"box":{"x":116,"y":723,"width":762,"height":12}},{"id":"d68812a1-8c33-42f2-9049-88c98d600446","block_type":"box","text":"accruals for such tax refunds. Each Fund regularly evaluates the probability of recovery. If the","page_number":133,"box":{"x":116,"y":738,"width":696,"height":12}},{"id":"e4ff09c0-3818-4e50-ba28-43d1107d38b5","block_type":"box","text":"likelihood of recovery materially decreases, due to, for example, a change in tax regulation or approach","page_number":133,"box":{"x":117,"y":754,"width":765,"height":12}},{"id":"8fe72e61-a2db-44fd-bbf0-3dff1c86c5ee","block_type":"box","text":"in the foreign country, accruals in a Fund’s net asset value for such refunds may be written down","page_number":133,"box":{"x":117,"y":769,"width":716,"height":12}},{"id":"279fcd6a-dae8-4679-be53-483cf9672355","block_type":"box","text":"partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the","page_number":133,"box":{"x":117,"y":785,"width":755,"height":12}},{"id":"ab3331e7-0b6d-4a8d-b34c-3524cd309b38","block_type":"box","text":"time an accrual is written down will bear the impact of the resulting reduction in net asset value","page_number":133,"box":{"x":116,"y":800,"width":703,"height":12}},{"id":"6588608e-c2a6-4706-b595-4dae6ee4ec9c","block_type":"box","text":"regardless of whether they were shareholders during the accrual period. Conversely, if a Fund receives","page_number":133,"box":{"x":117,"y":816,"width":765,"height":12}},{"id":"d2aaca9b-cf76-4875-ac86-2392f4206499","block_type":"box","text":"a tax refund that has not been previously accrued, shareholders in the Fund at the time of the","page_number":133,"box":{"x":116,"y":831,"width":699,"height":12}},{"id":"102bb30c-e56f-4030-945a-52270480f244","block_type":"box","text":"successful recovery will benefit from the resulting increase in the Fund’s net asset value. Shareholders","page_number":133,"box":{"x":116,"y":847,"width":767,"height":12}},{"id":"59ec982d-9718-4d04-b458-c0d87f2c8b26","block_type":"box","text":"who sold their shares prior to such time will not benefit from such increase in the Fund’s net asset","page_number":133,"box":{"x":116,"y":862,"width":730,"height":12}},{"id":"f708a6b3-14f6-4bc0-9fc2-fb02cd5144a1","block_type":"box","text":"value.","page_number":133,"box":{"x":116,"y":878,"width":49,"height":9}},{"id":"148bd809-7879-40e6-ac5d-f6c794c12193","block_type":"box","text":"II-39","page_number":133,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ee8db506-c417-4bab-b589-fe6b2e68b45e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":133,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"99e6941c-f86f-4839-8f31-0e0e175fd077","block_type":"box","text":"U.S. Economic Trading Partners Risk.","page_number":134,"box":{"x":117,"y":87,"width":287,"height":12}},{"id":"8ad59cfe-1bd8-4029-ab7f-1b8b9be2ecd6","block_type":"box","text":"The United States is a significant, and in some cases the most","page_number":134,"box":{"x":404,"y":87,"width":469,"height":12}},{"id":"b785060e-764c-4c33-bb2a-eca52767a66e","block_type":"box","text":"significant, trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a","page_number":134,"box":{"x":116,"y":102,"width":762,"height":13}},{"id":"96901487-fe0d-417e-83b0-b509a6df2e52","block_type":"box","text":"result, economic conditions of such countries may be particularly affected by changes in the U.S.","page_number":134,"box":{"x":117,"y":118,"width":723,"height":12}},{"id":"3d3ccf65-83ae-4700-ac52-98ca93652632","block_type":"box","text":"economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs, changes","page_number":134,"box":{"x":116,"y":134,"width":770,"height":12}},{"id":"00965696-4ed1-432d-8f46-829e5b1a86a9","block_type":"box","text":"in the U.S. dollar exchange rate or an economic slowdown in the United States may have a material","page_number":134,"box":{"x":117,"y":149,"width":745,"height":12}},{"id":"367c4bb8-9eee-4acc-949a-48eca4986d21","block_type":"box","text":"adverse effect on a country’s economic conditions and, as a result, securities to which the Fund has","page_number":134,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"7d5dab80-af93-4660-ae00-3dc3d2d0c40f","block_type":"box","text":"exposure. Circumstances could arise that could prevent the timely payment of interest or principal on","page_number":134,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"4abe586d-0068-4d93-81d7-0fc90bca67db","block_type":"box","text":"U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result","page_number":134,"box":{"x":117,"y":196,"width":760,"height":12}},{"id":"0c967775-c71f-4c6d-a4fb-a9ac3be8a37e","block_type":"box","text":"in substantial negative consequences for the U.S. economy and the global financial system.","page_number":134,"box":{"x":117,"y":211,"width":685,"height":12}},{"id":"d62303ae-ca15-4d9e-ba97-84fa55848f72","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including","page_number":134,"box":{"x":116,"y":238,"width":745,"height":12}},{"id":"40351e80-9ba1-47f4-a821-28b8611d1589","block_type":"box","text":"traditional allies, such as certain European countries, and historical adversaries, such as North Korea,","page_number":134,"box":{"x":116,"y":254,"width":761,"height":12}},{"id":"df430649-89e9-40f6-86ca-281155e75b4c","block_type":"box","text":"Iran, China and Russia. If these relations were to worsen, it could adversely affect U.S. issuers as well","page_number":134,"box":{"x":117,"y":269,"width":763,"height":12}},{"id":"ef600af3-516f-4322-beb4-81cc37858bee","block_type":"box","text":"as non-U.S. issuers that rely on the United States for trade. The United States has also experienced","page_number":134,"box":{"x":116,"y":285,"width":748,"height":12}},{"id":"f690cb9e-9c62-4917-8538-648193ed15ba","block_type":"box","text":"increased internal unrest and discord. If these trends were to continue, it may have an adverse impact","page_number":134,"box":{"x":117,"y":300,"width":761,"height":12}},{"id":"20132ac0-e2bf-4590-950d-2c49394daa2e","block_type":"box","text":"on the U.S. economy and many of the issuers in which a Fund may invest.","page_number":134,"box":{"x":116,"y":316,"width":557,"height":12}},{"id":"c4c139c4-a815-451b-833b-651b9a2e47eb","block_type":"box","text":"Funding Agreements.","page_number":134,"box":{"x":116,"y":343,"width":171,"height":12}},{"id":"6b5e733a-8d10-4082-8596-a71db886bb24","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar","page_number":134,"box":{"x":289,"y":343,"width":561,"height":12}},{"id":"ba62fe1e-6093-4290-9a82-fc94268c1f60","block_type":"box","text":"funding agreements. In connection with these investments, a Fund makes cash contributions to a","page_number":134,"box":{"x":116,"y":358,"width":727,"height":12}},{"id":"66ca5d89-fe7f-499b-aec3-a908ff610aa5","block_type":"box","text":"deposit fund of an insurance company’s general account. The insurance company then credits to the","page_number":134,"box":{"x":116,"y":374,"width":753,"height":12}},{"id":"50f14a4a-c8c4-4248-9825-b555e0b7b04c","block_type":"box","text":"Fund on a monthly basis guaranteed interest, which is based on an index. The funding agreements","page_number":134,"box":{"x":117,"y":389,"width":740,"height":12}},{"id":"a464badb-145f-469f-821c-75bc5b9d01f1","block_type":"box","text":"provide that this guaranteed interest will not be less than a certain minimum rate. The purchase price","page_number":134,"box":{"x":117,"y":405,"width":753,"height":12}},{"id":"8a5e6923-3caf-42ec-af5a-2db79b5891d5","block_type":"box","text":"paid for a funding agreement becomes part of the general assets of the insurance company, and the","page_number":134,"box":{"x":117,"y":420,"width":749,"height":12}},{"id":"ace75b69-e088-481a-95af-d667f4f34e3a","block_type":"box","text":"contract is paid from the general assets of the insurance company. Generally, funding agreements are","page_number":134,"box":{"x":116,"y":436,"width":764,"height":12}},{"id":"a2f16c39-c5a3-49f5-8a65-2f103b7cd4be","block_type":"box","text":"not assignable or transferable without the permission of the issuing insurance companies, and an","page_number":134,"box":{"x":117,"y":451,"width":726,"height":12}},{"id":"49ba26dc-73d2-4d87-8613-31d186e5c8e8","block_type":"box","text":"active secondary market in some funding agreements does not currently exist.","page_number":134,"box":{"x":116,"y":467,"width":586,"height":12}},{"id":"57ffa362-7f52-4742-bb50-84c27cc9c437","block_type":"box","text":"Guarantees","page_number":134,"box":{"x":117,"y":494,"width":91,"height":10}},{"id":"60965008-9a1f-4faf-9e4a-b2e098c0064f","block_type":"box","text":".","page_number":134,"box":{"x":209,"y":502,"width":3,"height":1}},{"id":"2ec4065f-5724-4759-89b0-0786dcff956f","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate","page_number":134,"box":{"x":213,"y":494,"width":660,"height":12}},{"id":"88d9c253-b469-49bc-8886-4355181f6c31","block_type":"box","text":"from the issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will","page_number":134,"box":{"x":116,"y":509,"width":771,"height":13}},{"id":"3c55d3e5-a937-4837-a7c9-8d1945d01c91","block_type":"box","text":"fulfill an issuer’s payment obligations under a security if the issuer is unable to do so.","page_number":134,"box":{"x":116,"y":525,"width":634,"height":12}},{"id":"c96bf823-0079-436c-9413-23d3b608b61a","block_type":"box","text":"Illiquid Investments.","page_number":134,"box":{"x":116,"y":552,"width":166,"height":12}},{"id":"283d759c-fb86-433c-9b21-5eb2e5e9f980","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the","page_number":134,"box":{"x":284,"y":552,"width":557,"height":12}},{"id":"ae20c092-b09d-4884-b990-5de48b18b802","block_type":"box","text":"acquisition, a Fund would have invested more than 15% of its net assets in illiquid investments. An","page_number":134,"box":{"x":116,"y":568,"width":737,"height":12}},{"id":"5f21bee7-8b85-4846-ad7c-db2241903938","block_type":"box","text":"illiquid investment is any investment that a Fund reasonably expects cannot be sold or disposed of in","page_number":134,"box":{"x":117,"y":583,"width":753,"height":12}},{"id":"2d8b2a7d-dad4-4775-aa48-036c98ea362c","block_type":"box","text":"current market conditions in seven calendar days or less without the sale or disposition significantly","page_number":134,"box":{"x":116,"y":599,"width":742,"height":12}},{"id":"0c4e205d-89c6-43d6-b47b-a2862d213aa0","block_type":"box","text":"changing the market value of the investment. Liquid investments may become illiquid after purchase by","page_number":134,"box":{"x":116,"y":614,"width":771,"height":12}},{"id":"328fce90-2303-4c18-9956-0105a67d86fa","block_type":"box","text":"a Fund, particularly during periods of market turmoil. There can be no assurance that a security or","page_number":134,"box":{"x":116,"y":630,"width":733,"height":12}},{"id":"b0fa4bc8-49ec-4e30-a0bf-72d8af243358","block_type":"box","text":"instrument that is deemed to be liquid when purchased will continue to be liquid for as long as it is held","page_number":134,"box":{"x":117,"y":645,"width":766,"height":12}},{"id":"7ac5b159-3e68-414b-aebe-a63861ce8028","block_type":"box","text":"by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":134,"box":{"x":117,"y":661,"width":725,"height":12}},{"id":"6a0e5c9a-260f-44d5-8045-ee781f86dd1a","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce","page_number":134,"box":{"x":117,"y":676,"width":742,"height":12}},{"id":"9844a7f5-30bd-459e-b32a-a4c4497f8d35","block_type":"box","text":"the returns of the Fund because it may be difficult to sell the illiquid investments at an advantageous","page_number":134,"box":{"x":116,"y":692,"width":743,"height":12}},{"id":"3600bb17-68eb-4185-970c-aef0bb7e0dcd","block_type":"box","text":"time or price. In addition, if a Fund is limited in its ability to dispose of illiquid investments during","page_number":134,"box":{"x":116,"y":707,"width":708,"height":12}},{"id":"b247e21c-22bc-4e74-a0b3-000f5f3a6ecc","block_type":"box","text":"periods when shareholders are redeeming or selling their shares or the Fund’s net assets otherwise","page_number":134,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"01357504-c9e8-404d-9c05-05a68d537add","block_type":"box","text":"shrink, the Fund will need to dispose of liquid securities to meet redemption requests and illiquid","page_number":134,"box":{"x":116,"y":738,"width":712,"height":12}},{"id":"b82e9888-8fbc-4217-89c2-2ecea0ec9829","block_type":"box","text":"securities will become a larger portion of the Fund’s holdings. If illiquid investments exceed 15% of a","page_number":134,"box":{"x":116,"y":754,"width":745,"height":12}},{"id":"52dffeca-c0e6-4517-aa1a-d3523cf30cc5","block_type":"box","text":"Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as defined below)","page_number":134,"box":{"x":117,"y":769,"width":749,"height":12}},{"id":"d36a4a01-c2cd-4a3d-a4d5-4ff5bf2c61d7","block_type":"box","text":"will require that certain remedial actions be taken.","page_number":134,"box":{"x":116,"y":785,"width":368,"height":12}},{"id":"66b6a1e9-8e35-4216-aa80-441bbd6c2d9b","block_type":"box","text":"Illiquid investments may trade at a discount from","page_number":134,"box":{"x":491,"y":785,"width":358,"height":12}},{"id":"4e6109a5-fc7a-4fa2-8f61-b79d1e9905aa","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the","page_number":134,"box":{"x":116,"y":800,"width":742,"height":12}},{"id":"2da0ea7b-cc58-4407-b79a-cc8097f8c474","block_type":"box","text":"ability of the Fund to dispose of its investments in a timely fashion and for a fair price as well as its","page_number":134,"box":{"x":116,"y":816,"width":728,"height":12}},{"id":"a4041f07-1e4c-48f0-9b3d-fbba20ab7b81","block_type":"box","text":"ability to take advantage of market opportunities. The risks associated with illiquidity will be particularly","page_number":134,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"9b65a7b9-2428-45b0-8f81-a463cf1b8977","block_type":"box","text":"acute where a Fund’s operations require cash, such as when the Fund redeems shares or pays","page_number":134,"box":{"x":116,"y":847,"width":715,"height":12}},{"id":"b15814a5-2b7e-4da0-af40-af35ef6a4dce","block_type":"box","text":"dividends, and could result in the Fund borrowing to meet short-term cash requirements or incurring","page_number":134,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"60652702-c6e3-495c-93de-00dcc4a9a243","block_type":"box","text":"capital losses on the sale of illiquid investments.","page_number":134,"box":{"x":116,"y":878,"width":362,"height":12}},{"id":"51f716cb-8d21-44d3-8051-dc23262dda13","block_type":"box","text":"II-40","page_number":134,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"925c69a6-6622-48c8-8695-5710fb442337","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":134,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"61bf1b9d-9822-4f30-b685-e06e43112807","block_type":"box","text":"Index Funds","page_number":135,"box":{"x":116,"y":87,"width":99,"height":10}},{"id":"9ca87c1e-861a-45fe-9f95-f74b5c361ef2","block_type":"box","text":".","page_number":135,"box":{"x":216,"y":95,"width":2,"height":1}},{"id":"f9763342-7651-43a3-81c5-f414723cef0b","block_type":"box","text":"Cash Flows; Expenses.","page_number":135,"box":{"x":117,"y":111,"width":173,"height":12}},{"id":"344c6702-aad5-41ab-a694-e9ebc087e5de","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some","page_number":135,"box":{"x":291,"y":111,"width":573,"height":12}},{"id":"4b81c292-2a0e-4851-b821-f8674e7ac42a","block_type":"box","text":"extent on the Manager’s ability to manage cash flow (primarily from purchases and redemptions and","page_number":135,"box":{"x":116,"y":127,"width":749,"height":12}},{"id":"eac2c5fe-c05b-4b4b-b352-a23d3ea4bce5","block_type":"box","text":"distributions from the Fund’s investments). The Manager will make investment changes to a Fund’s","page_number":135,"box":{"x":116,"y":142,"width":742,"height":12}},{"id":"9dd48ee5-2402-4ba1-b233-d72b1fc87b0d","block_type":"box","text":"portfolio to accommodate cash flow while continuing to seek to replicate the total return of the Fund’s","page_number":135,"box":{"x":117,"y":158,"width":753,"height":12}},{"id":"6d93d035-1577-496d-8969-702444ca354d","block_type":"box","text":"target index. Investors should also be aware that the investment performance of each index is a","page_number":135,"box":{"x":116,"y":173,"width":716,"height":12}},{"id":"c461525e-ac54-4ba4-b237-706da4e6edf3","block_type":"box","text":"hypothetical number which does not take into account brokerage commissions and other transaction","page_number":135,"box":{"x":117,"y":189,"width":749,"height":12}},{"id":"c7e7a588-429e-4f32-a869-9adb50abef60","block_type":"box","text":"costs, custody and other costs of investing, and any incremental operating costs (","page_number":135,"box":{"x":116,"y":204,"width":606,"height":12}},{"id":"558e9399-0894-46d7-a0ed-acc661a26c75","block_type":"box","text":"e.g.","page_number":135,"box":{"x":723,"y":207,"width":26,"height":9}},{"id":"e6e756aa-75d8-4228-b511-4eb69afc19a6","block_type":"box","text":", transfer agency","page_number":135,"box":{"x":752,"y":204,"width":129,"height":12}},{"id":"ca010288-8bcd-4900-83c5-c15b9bcaeda5","block_type":"box","text":"and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to replicate the","page_number":135,"box":{"x":116,"y":220,"width":757,"height":12}},{"id":"058d869f-fe2a-49ea-b126-2318323a80d2","block_type":"box","text":"total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":135,"box":{"x":116,"y":235,"width":706,"height":12}},{"id":"5c81166a-331a-48e0-83cf-a9e29d60b248","block_type":"box","text":"particular security as an investment.","page_number":135,"box":{"x":117,"y":251,"width":272,"height":12}},{"id":"fbeea376-6662-46e0-b2a9-854e56afff70","block_type":"box","text":"Tracking Error Risk","page_number":135,"box":{"x":118,"y":284,"width":142,"height":12}},{"id":"cef74d59-8350-4ef9-8574-e2b8f3b4f1ca","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s","page_number":135,"box":{"x":260,"y":284,"width":586,"height":12}},{"id":"c4afc422-086e-42f1-8744-11f8c8322026","block_type":"box","text":"performance from that of the Underlying Index. Tracking error may occur because of differences","page_number":135,"box":{"x":117,"y":300,"width":711,"height":12}},{"id":"6db0438e-8c4b-4a1a-8abc-147f5fe9fd45","block_type":"box","text":"between the securities and other instruments held in the Fund’s portfolio and those included in the","page_number":135,"box":{"x":117,"y":315,"width":725,"height":12}},{"id":"034f40e4-4d50-44fc-9402-8eb54fdae8c7","block_type":"box","text":"Underlying Index, pricing differences (including, as applicable, differences between a security’s price at","page_number":135,"box":{"x":117,"y":331,"width":762,"height":12}},{"id":"fd0a492d-fc61-4c0b-b994-596d508765e5","block_type":"box","text":"the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s net","page_number":135,"box":{"x":116,"y":346,"width":757,"height":12}},{"id":"887e17b1-ec15-481c-a99f-bd5784a22832","block_type":"box","text":"asset value), differences in transaction costs incurred by the Fund, the Fund’s holding of uninvested","page_number":135,"box":{"x":116,"y":362,"width":739,"height":12}},{"id":"e031f59a-de3c-413c-81d6-e0b977929101","block_type":"box","text":"cash, differences in timing of the accrual of or the valuation of dividends or other distributions, interest,","page_number":135,"box":{"x":116,"y":377,"width":756,"height":12}},{"id":"b67bde4f-6858-4ea6-9ead-91f3eca58bd1","block_type":"box","text":"the requirements to maintain pass-through tax treatment, portfolio transactions carried out to minimize","page_number":135,"box":{"x":116,"y":393,"width":757,"height":12}},{"id":"f7cb5225-1662-4d1a-9057-d99952a40e74","block_type":"box","text":"the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the","page_number":135,"box":{"x":116,"y":408,"width":733,"height":12}},{"id":"266631d2-19be-4cca-a306-333bb8060fa8","block_type":"box","text":"Fund of complying with various new or existing regulatory requirements. These risks may be heightened","page_number":135,"box":{"x":117,"y":424,"width":770,"height":12}},{"id":"c4beebfa-54a9-47cd-942d-ae9be49b6a37","block_type":"box","text":"during times of increased market volatility or other unusual market conditions. In addition, tracking error","page_number":135,"box":{"x":116,"y":439,"width":765,"height":12}},{"id":"69286410-4e65-4069-a699-232dd7b98e5b","block_type":"box","text":"may result because the Fund incurs fees and expenses, while the Underlying Index does not.","page_number":135,"box":{"x":117,"y":455,"width":690,"height":12}},{"id":"d1918ce3-db49-42da-9be1-d4415f98fc1a","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may","page_number":135,"box":{"x":116,"y":488,"width":758,"height":12}},{"id":"f714a9f8-757c-4483-a530-6f8e8a89cf83","block_type":"box","text":"conduct an analysis on such issuer’s securities to identify and screen for outlier high risk behavior","page_number":135,"box":{"x":116,"y":503,"width":729,"height":12}},{"id":"19d4c381-44bf-40d8-b7dd-73f0a970dd73","block_type":"box","text":"(such as rapid or unusual price growth that does not appear to be supported by publicly available","page_number":135,"box":{"x":117,"y":519,"width":724,"height":12}},{"id":"d50618d8-4e25-4186-a120-c5480d5cbeb8","block_type":"box","text":"information on the business and assets of the issuer, unusual or significant short interest or lending","page_number":135,"box":{"x":117,"y":534,"width":740,"height":12}},{"id":"0ace7fc0-3cdc-43ba-ba3f-abfa98df7904","block_type":"box","text":"activity, negative sentiment, suspended trading or incorrect free-float calculations, which could be","page_number":135,"box":{"x":116,"y":550,"width":728,"height":12}},{"id":"e784f6b1-dac4-4320-a635-cb8f6331c0a3","block_type":"box","text":"indicators of possible irregularities, miscalculations or even fraud). 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FTSE has no obligation to take the needs of any particular Fund or its","page_number":137,"box":{"x":116,"y":428,"width":694,"height":12}},{"id":"33a9dc93-5d48-4494-91f7-3e6e22be9c63","block_type":"box","text":"participants or any other product or person into consideration in determining, composing or calculating","page_number":137,"box":{"x":117,"y":444,"width":762,"height":12}},{"id":"500db644-8605-4dd7-9f4e-1f10740ef2f5","block_type":"box","text":"the FTSE Index.","page_number":137,"box":{"x":116,"y":459,"width":126,"height":10}},{"id":"9c757412-3dc9-41f0-81ab-b058dbb3287a","block_type":"box","text":"Bloomberg Indexes.","page_number":137,"box":{"x":116,"y":490,"width":148,"height":12}},{"id":"23abe6e0-19f8-49a2-912e-3ade53d65dc1","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with","page_number":137,"box":{"x":265,"y":490,"width":592,"height":12}},{"id":"86178448-760d-4d4b-9731-e57be5db8f0c","block_type":"box","text":"Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”). Bloomberg is not responsible for","page_number":137,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"55c85a7a-ba1b-44c1-b69b-99d2cca8d432","block_type":"box","text":"nor has it reviewed any Fund nor any associated literature or publications, and Bloomberg makes no","page_number":137,"box":{"x":117,"y":521,"width":750,"height":12}},{"id":"3d88a8ec-af65-4f3d-8dd2-68ede09330cc","block_type":"box","text":"representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.","page_number":137,"box":{"x":117,"y":537,"width":740,"height":12}},{"id":"b0b3be45-8298-4923-9ad3-d581757eeb00","block_type":"box","text":"Bloomberg reserves the right, at any time and without notice, to alter, amend, terminate or in any way","page_number":137,"box":{"x":117,"y":568,"width":757,"height":12}},{"id":"a373316c-3003-4b31-a4f3-f7836e41b6c2","block_type":"box","text":"change a Bloomberg Index. 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BofA is not the issuer or producer of the ICE BofA Indices, and its name is a","page_number":137,"box":{"x":117,"y":676,"width":722,"height":12}},{"id":"b1da721f-1054-480d-b341-6408d1647568","block_type":"box","text":"trademark and service mark of its owner used under license. Neither ICE nor BofA is responsible for or","page_number":137,"box":{"x":116,"y":692,"width":764,"height":12}},{"id":"b79b82ec-7230-42f5-bdd6-dfd1bde753f0","block_type":"box","text":"has reviewed any Fund nor any associated literature or publications and ICE and BofA make no","page_number":137,"box":{"x":117,"y":707,"width":710,"height":12}},{"id":"8f92f743-c200-496b-9516-5d2231619557","block_type":"box","text":"representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.","page_number":137,"box":{"x":117,"y":723,"width":734,"height":12}},{"id":"eeed7bc5-ff3f-4c82-9022-e818c12ee349","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change","page_number":137,"box":{"x":117,"y":754,"width":758,"height":12}},{"id":"a82748a9-25eb-41c0-b33b-08c3d1955499","block_type":"box","text":"an ICE BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or","page_number":137,"box":{"x":116,"y":769,"width":761,"height":12}},{"id":"f8ea6da7-6642-4289-8226-c8fbaadfe2a8","block_type":"box","text":"any other product or person into consideration in determining, composing or calculating an ICE BofA","page_number":137,"box":{"x":116,"y":785,"width":745,"height":12}},{"id":"dac37d60-ef6b-4df8-ac78-7f2fa343033e","block_type":"box","text":"Index.","page_number":137,"box":{"x":117,"y":800,"width":43,"height":10}},{"id":"d9d35060-d901-45d1-945e-9e730093c7d9","block_type":"box","text":"Indexed and Inverse Securities.","page_number":137,"box":{"x":116,"y":831,"width":250,"height":10}},{"id":"5a54324a-3141-4073-aaeb-ddbfc5cbdf60","block_type":"box","text":"A Fund may invest in securities that provide a potential return based","page_number":137,"box":{"x":367,"y":831,"width":517,"height":12}},{"id":"38b7bf33-5437-4b49-aae9-5bc0cd6db272","block_type":"box","text":"on a particular index of value or interest rates. For example, a Fund may invest in securities that pay","page_number":137,"box":{"x":116,"y":847,"width":749,"height":12}},{"id":"1144778c-ee41-4585-b9cf-f772a0d89284","block_type":"box","text":"interest based on an index of interest rates. The principal amount payable upon maturity of certain","page_number":137,"box":{"x":117,"y":862,"width":732,"height":12}},{"id":"9aefc286-04d1-4615-aab6-0e21a42f0020","block_type":"box","text":"securities also may be based on the value of the index. 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The Manager believes that indexed and","page_number":138,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"0211af5f-4bd3-4cb0-af70-a5101bc21911","block_type":"box","text":"inverse floating obligations represent flexible portfolio management instruments for a Fund that allow","page_number":138,"box":{"x":117,"y":335,"width":751,"height":12}},{"id":"8d7a275f-5651-4479-b682-84095283d47b","block_type":"box","text":"the Fund to seek potential investment rewards, hedge other portfolio positions or vary the degree of","page_number":138,"box":{"x":116,"y":351,"width":744,"height":12}},{"id":"fceb828c-1f1f-4076-89ac-c791e9c68cdd","block_type":"box","text":"investment leverage relatively efficiently under different market conditions. A Fund may invest in","page_number":138,"box":{"x":117,"y":366,"width":716,"height":12}},{"id":"1a3ae4b3-5281-4456-b1da-08c392d183cd","block_type":"box","text":"indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":138,"box":{"x":117,"y":382,"width":734,"height":12}},{"id":"991fbcac-eef9-4640-ab5e-1fd798926948","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a","page_number":138,"box":{"x":117,"y":397,"width":755,"height":12}},{"id":"6745e2ae-3ea5-458c-9b4b-6317fc370174","block_type":"box","text":"security includes a contingent liability, in the event of an adverse movement in the underlying index or","page_number":138,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"1e215a9c-f773-4957-987d-20d85222003e","block_type":"box","text":"interest rate, a Fund may be required to pay substantial additional margin to maintain the position.","page_number":138,"box":{"x":117,"y":428,"width":731,"height":12}},{"id":"5ec3b94e-37c4-4eae-b735-78f2a04acbb0","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt","page_number":138,"box":{"x":116,"y":459,"width":682,"height":12}},{"id":"a82f942d-ba34-47d4-ae0f-b3bad18d0981","block_type":"box","text":"instruments (“inverse floaters”). Inverse floaters are securities the potential of which is inversely related","page_number":138,"box":{"x":117,"y":475,"width":768,"height":12}},{"id":"85cc5795-e94c-488b-89cb-03512dc150c3","block_type":"box","text":"to changes in interest rates. In general, the return on inverse floaters will decrease when short-term","page_number":138,"box":{"x":116,"y":490,"width":743,"height":12}},{"id":"902cdbcb-e20b-4570-8d97-c0f4026afce6","block_type":"box","text":"interest rates increase and increase when short-term rates decrease. Municipal tender option bonds,","page_number":138,"box":{"x":117,"y":506,"width":751,"height":12}},{"id":"f41b6ac1-c014-4b6a-ae9d-9478dd17fb86","block_type":"box","text":"both taxable and tax-exempt, which may include inverse floating rate debt instruments, (including","page_number":138,"box":{"x":117,"y":521,"width":725,"height":12}},{"id":"2ddbff37-3025-44ce-aef7-5ce6b4a7b7a0","block_type":"box","text":"residual interests thereon) are excluded from this 10% limitation.","page_number":138,"box":{"x":117,"y":537,"width":483,"height":12}},{"id":"f7953658-8514-4eb9-9182-746a297f67af","block_type":"box","text":"Inflation Risk.","page_number":138,"box":{"x":116,"y":568,"width":109,"height":9}},{"id":"d7cff231-5a88-4296-a072-1ec74d2b9cd2","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the","page_number":138,"box":{"x":226,"y":568,"width":627,"height":12}},{"id":"8ecf1ccd-b207-4219-b509-4a4f9ed9373e","block_type":"box","text":"present value of assets or income from investments will be less in the future as inflation decreases the","page_number":138,"box":{"x":117,"y":583,"width":763,"height":12}},{"id":"b9590194-9abc-499d-acfd-3297bb2f6b5a","block_type":"box","text":"value of money. As inflation increases, the present value of a Fund’s assets can decline as can the","page_number":138,"box":{"x":116,"y":599,"width":739,"height":12}},{"id":"7a522a3e-b53b-4863-8a64-f72f4d0637f3","block_type":"box","text":"value of a Fund’s distributions. Inflation rates may change frequently and significantly due to a number","page_number":138,"box":{"x":116,"y":614,"width":764,"height":12}},{"id":"6be9187e-4845-44f1-8308-149fffad62a6","block_type":"box","text":"of potential factors, including, among others, unexpected economic shifts or changes in fiscal or","page_number":138,"box":{"x":116,"y":630,"width":716,"height":12}},{"id":"54fba925-8fec-4095-9f07-cbb38fc06a0b","block_type":"box","text":"monetary policies.","page_number":138,"box":{"x":117,"y":645,"width":139,"height":12}},{"id":"7a5692a9-9c1c-4348-a1b1-1d9d2a846d51","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":138,"box":{"x":116,"y":676,"width":275,"height":12}},{"id":"c6b20dc8-e7b6-4294-b095-997fe34f55f3","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued","page_number":138,"box":{"x":397,"y":676,"width":451,"height":12}},{"id":"3f9446a3-9b4f-416b-a7b5-52b83d167c7b","block_type":"box","text":"stocks trade in the secondary market are affected by the performance of the stock market overall. If","page_number":138,"box":{"x":116,"y":692,"width":739,"height":12}},{"id":"7c6d99f1-a325-4e59-8e32-99ebd7723b05","block_type":"box","text":"IPOs are brought to the market, availability may be limited and a Fund may not be able to buy any","page_number":138,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"35047460-dffa-40a2-a1e9-dcaa34858103","block_type":"box","text":"shares at the offering price, or if it is able to buy shares, it may not be able to buy as many shares at","page_number":138,"box":{"x":116,"y":723,"width":744,"height":12}},{"id":"a6123080-65ef-47ef-a962-d4e7920c7055","block_type":"box","text":"the offering price as it would like. In addition, the prices of securities involved in IPOs are often subject","page_number":138,"box":{"x":116,"y":738,"width":758,"height":12}},{"id":"662ddfb3-8110-406b-a6a7-0189aa498a4c","block_type":"box","text":"to greater and more unpredictable price changes than more established stocks. IPOs have the","page_number":138,"box":{"x":116,"y":754,"width":701,"height":12}},{"id":"e1216317-d44f-4891-90d4-6024a5ada4b0","block_type":"box","text":"potential to produce substantial gains. A Fund may hold shares from an IPO for only a short period of","page_number":138,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"dec9ae6f-c540-4958-b6f6-7a1d182776ab","block_type":"box","text":"time given possible price volatility. This may result in increased portfolio turnover and expenses, such","page_number":138,"box":{"x":116,"y":785,"width":752,"height":12}},{"id":"d610a5fb-e7bf-49ce-9518-4fcce80a97c8","block_type":"box","text":"as commissions and transaction costs, and potentially result in taxable gains that the Fund will","page_number":138,"box":{"x":116,"y":800,"width":699,"height":12}},{"id":"23ba6c10-65e2-4acc-a040-a6b015876eef","block_type":"box","text":"subsequently distribute to shareholders. There is no assurance that any Fund will have access to","page_number":138,"box":{"x":116,"y":816,"width":720,"height":12}},{"id":"23b85edd-e9a7-42eb-9053-6565bc9e4d71","block_type":"box","text":"profitable IPOs and therefore investors should not rely on any past gains from IPOs as an indication of","page_number":138,"box":{"x":117,"y":831,"width":763,"height":12}},{"id":"3cc0919d-4513-4769-8e9d-67b8c8b1227f","block_type":"box","text":"future performance. The investment performance of a Fund during periods when it is unable to invest","page_number":138,"box":{"x":116,"y":847,"width":755,"height":12}},{"id":"94b4b076-01f8-4562-bd43-f2196680aea7","block_type":"box","text":"significantly or at all in IPOs may be lower than during periods when it is able to do so. In addition, as a","page_number":138,"box":{"x":116,"y":862,"width":769,"height":12}},{"id":"b03c89ce-16bb-478c-b260-ce459a83c0ca","block_type":"box","text":"Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":138,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"c78bfbce-611e-4a77-a52c-b6e67689dbd0","block_type":"box","text":"II-44","page_number":138,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"cdff6fab-086d-4878-8429-f3fa1bd5a5d5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":138,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"11c6c572-314d-4a78-a85e-2bb741fbe8c0","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market","page_number":139,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"12adab38-048c-4f21-89d6-4bf9c5e7cbd6","block_type":"box","text":"capitalizations. Securities issued in IPOs have no trading history, and information about the companies","page_number":139,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"47b13318-9db2-4fa0-9d58-282cc8802bdb","block_type":"box","text":"may be available for very limited periods.","page_number":139,"box":{"x":117,"y":118,"width":308,"height":12}},{"id":"9185559e-49fc-44fb-96e9-74a280652062","block_type":"box","text":"Investment in Emerging Markets.","page_number":139,"box":{"x":116,"y":157,"width":268,"height":12}},{"id":"df3d50c7-0b50-4ce8-b7a5-6cbb160ce7f9","block_type":"box","text":"General","page_number":139,"box":{"x":117,"y":180,"width":59,"height":10}},{"id":"449f66ef-199a-450d-9e6b-749e44d4c4d8","block_type":"box","text":".","page_number":139,"box":{"x":177,"y":188,"width":8,"height":1}},{"id":"1c721fe1-1900-4a8c-b39c-025df8969d9b","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging","page_number":139,"box":{"x":117,"y":211,"width":727,"height":12}},{"id":"f40ca059-4ce3-4473-b8ff-100736da4e75","block_type":"box","text":"capital markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital","page_number":139,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"89d217d9-c04c-4531-95bc-d990785d1ce4","block_type":"box","text":"market is any country that is (i) generally recognized to be an emerging market country by the","page_number":139,"box":{"x":117,"y":242,"width":700,"height":12}},{"id":"87dd5587-d4ea-4fd1-9795-69afaf72feaf","block_type":"box","text":"international financial community, such as the International Finance Corporation, or","page_number":139,"box":{"x":117,"y":258,"width":617,"height":12}},{"id":"b84be1bd-c66b-4f31-87f4-ecaf13aff75b","block_type":"box","text":"determined by the","page_number":139,"box":{"x":739,"y":258,"width":139,"height":12}},{"id":"04018919-a127-4117-a0e9-72c7d839447e","block_type":"box","text":"World Bank to have a low, middle or middle upper income economy; (ii) classified by the United","page_number":139,"box":{"x":116,"y":273,"width":714,"height":12}},{"id":"fcc2982f-464f-4161-a9da-c097721dd0ec","block_type":"box","text":"Nations or its authorities to be developing; and/or (iii) included in a broad-based index that is generally","page_number":139,"box":{"x":117,"y":289,"width":762,"height":12}},{"id":"acb14555-fd04-428a-9156-c0e9c413ec6c","block_type":"box","text":"representative of emerging markets. Countries with emerging markets can be found in regions such as","page_number":139,"box":{"x":117,"y":304,"width":766,"height":12}},{"id":"dfb93835-506a-4491-badb-995ab713ef69","block_type":"box","text":"Asia, Latin America, Eastern Europe and Africa.","page_number":139,"box":{"x":116,"y":320,"width":361,"height":12}},{"id":"7db19824-faf9-4cce-b76f-9e1cde051723","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve","page_number":139,"box":{"x":117,"y":351,"width":743,"height":12}},{"id":"d0ccea01-cc8e-41d3-b1f4-d9d387f01847","block_type":"box","text":"certain additional risks that do not generally apply to investments in securities of issuers in more","page_number":139,"box":{"x":116,"y":366,"width":717,"height":12}},{"id":"049aa4b4-0452-4eeb-83af-0d2124658843","block_type":"box","text":"developed capital markets, such as (i) low or non-existent trading volume, resulting in market illiquidity","page_number":139,"box":{"x":116,"y":382,"width":763,"height":12}},{"id":"17de6e2e-8521-452e-903b-5c6128b0d0e5","block_type":"box","text":"and increased volatility in prices for such securities, as compared to securities of comparable issuers in","page_number":139,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"a13b042d-fb33-447b-af49-2e9ba95424a3","block_type":"box","text":"more developed capital markets; (ii) uncertain national policies and social, political and economic","page_number":139,"box":{"x":117,"y":413,"width":723,"height":12}},{"id":"775c4f43-f443-49dc-a7bb-5cc0590adc8d","block_type":"box","text":"instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of","page_number":139,"box":{"x":117,"y":428,"width":718,"height":12}},{"id":"d2d94b2c-9b90-4a17-8da5-26d75263ce78","block_type":"box","text":"inflation or unfavorable diplomatic developments; (iii) possible fluctuations in exchange rates, differing","page_number":139,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"22535ede-2d96-443c-889a-6db9772e2980","block_type":"box","text":"legal systems and the existence or possible imposition of exchange controls, custodial restrictions or","page_number":139,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"6d221697-962f-44f1-aa85-5836255e236d","block_type":"box","text":"other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":139,"box":{"x":116,"y":475,"width":741,"height":12}},{"id":"7ff04c03-c6f3-49a8-8b08-061f03c2ddc0","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers","page_number":139,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"f59abfc9-a992-40c9-9a2d-4b9c8b8722ca","block_type":"box","text":"or industries deemed sensitive to national interests; and (v) the lack or relatively early development of","page_number":139,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"6ba13c74-c3bd-4ada-ac94-017dc28ef459","block_type":"box","text":"legal structures governing private and foreign investments and private property. In addition to","page_number":139,"box":{"x":117,"y":521,"width":695,"height":12}},{"id":"d42f34fe-c41b-4946-9392-1cb57706a135","block_type":"box","text":"withholding taxes on investment income, some countries with emerging markets may impose","page_number":139,"box":{"x":116,"y":537,"width":695,"height":12}},{"id":"f7c761a4-9d43-4c84-bbd8-6ef2ec946d8a","block_type":"box","text":"differential capital gains taxes on foreign investors.","page_number":139,"box":{"x":116,"y":552,"width":381,"height":12}},{"id":"5894d29c-c416-44bf-b01d-17fbc65daeb9","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant","page_number":139,"box":{"x":117,"y":583,"width":699,"height":12}},{"id":"a43c46df-4424-4462-a371-c73cde14caf2","block_type":"box","text":"evolution and rapid development, and these countries may lack the social, political and economic","page_number":139,"box":{"x":116,"y":599,"width":726,"height":12}},{"id":"33aca964-1659-4d66-a9ed-0093a3f21e28","block_type":"box","text":"stability characteristic of more developed countries. In such a dynamic environment, there can be no","page_number":139,"box":{"x":116,"y":614,"width":750,"height":12}},{"id":"50333b9a-6563-4c2b-ac03-fcd52d5be039","block_type":"box","text":"assurance that any or all of these capital markets will continue to present viable investment","page_number":139,"box":{"x":116,"y":630,"width":681,"height":12}},{"id":"3f594ed7-2a2a-4bd9-9162-b1498b1bc4cd","block_type":"box","text":"opportunities for a Fund. In the past, governments of such nations have expropriated substantial","page_number":139,"box":{"x":116,"y":645,"width":719,"height":12}},{"id":"8b582add-a135-4a80-b042-47d2aea36f86","block_type":"box","text":"amounts of private property, and most claims of the property owners have never been fully settled.","page_number":139,"box":{"x":116,"y":661,"width":730,"height":12}},{"id":"0aae52e1-800a-4404-9290-681ea107bb5a","block_type":"box","text":"There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":139,"box":{"x":116,"y":676,"width":747,"height":12}},{"id":"ad61ec11-20d4-4fef-86dd-6a9833ee2b25","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks","page_number":139,"box":{"x":117,"y":692,"width":694,"height":9}},{"id":"63042fd4-3fe3-46f6-afc1-2188f8d1070d","block_type":"box","text":"described above, including the risks of nationalization or expropriation of assets, may be heightened. In","page_number":139,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"2e6a349f-f27c-4baa-8e50-d1fae2f00a97","block_type":"box","text":"addition, unanticipated political or social developments may affect the value of investments in these","page_number":139,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"e8257404-bb11-4389-a2dc-805860735f81","block_type":"box","text":"countries and the availability to a Fund of additional investments. The small size and inexperience of","page_number":139,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"36e2197b-47e3-4e74-be74-90c35183ee32","block_type":"box","text":"the securities markets in certain of these countries and the limited volume of trading in securities in","page_number":139,"box":{"x":116,"y":754,"width":732,"height":12}},{"id":"ad441cd8-5ca6-4ce0-99bf-9228a5357d5c","block_type":"box","text":"these countries may make investments in the countries illiquid and more volatile than investments in","page_number":139,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"ce6cee26-674d-4797-888a-a51ed1cee4f9","block_type":"box","text":"more established markets.","page_number":139,"box":{"x":117,"y":785,"width":195,"height":9}},{"id":"e5025c11-c65d-41ab-92fc-f3a138d79582","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be","page_number":139,"box":{"x":116,"y":816,"width":765,"height":12}},{"id":"1880d364-3a54-46d2-b5a6-aacc8090f8ac","block_type":"box","text":"available about issuers in more developed capital markets, and such issuers may not be subject to","page_number":139,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"df3c8f24-af22-4555-b738-e0645637c10a","block_type":"box","text":"accounting, auditing and financial reporting standards and requirements comparable to those to which","page_number":139,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"cfd69941-4bff-4cf2-8cac-36b1e7b34696","block_type":"box","text":"U.S. companies are subject. In certain countries with emerging capital markets, reporting standards","page_number":139,"box":{"x":117,"y":862,"width":743,"height":12}},{"id":"3ed8f4d3-fa2e-48bf-9f90-3dd5a6699b10","block_type":"box","text":"vary widely. As a result, traditional investment measurements used in the United States, such as price/","page_number":139,"box":{"x":116,"y":878,"width":762,"height":12}},{"id":"52d0fcda-df8d-4da7-bc20-4cdf5215b6b0","block_type":"box","text":"II-45","page_number":139,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"bd870b8e-9773-4b58-aa40-36efe3f6defc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":139,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"17793d11-0ae9-4b63-a715-2d0b7e97526a","block_type":"box","text":"earnings ratios, may not be applicable. Emerging market securities may be substantially less liquid","page_number":140,"box":{"x":116,"y":87,"width":737,"height":12}},{"id":"320ed895-f880-4d73-83f3-8a43fb36cb54","block_type":"box","text":"than, and more volatile than, those of mature markets, and company shares may be held by a limited","page_number":140,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"ad1e3a0c-ce47-4f2d-8cf2-c2953c1afd52","block_type":"box","text":"number of persons. This may adversely affect the timing and pricing of the Fund’s acquisition or","page_number":140,"box":{"x":117,"y":118,"width":715,"height":12}},{"id":"c4e51893-8f0a-40a8-a48d-d1ba0125854e","block_type":"box","text":"disposal of securities.","page_number":140,"box":{"x":116,"y":134,"width":165,"height":11}},{"id":"4eebc347-891d-4a1d-9434-8399d228b271","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks","page_number":140,"box":{"x":117,"y":165,"width":746,"height":12}},{"id":"b0a4844b-52ec-413f-8d19-7e7f2b9db081","block_type":"box","text":"than those in developed markets, in part because a Fund will need to use brokers and counterparties","page_number":140,"box":{"x":116,"y":180,"width":755,"height":12}},{"id":"5a535e16-efa5-4c70-be65-afdcbdc0088a","block_type":"box","text":"that are less well capitalized, and custody and registration of assets in some countries may be","page_number":140,"box":{"x":116,"y":196,"width":703,"height":12}},{"id":"bdd6235b-0353-4609-a56d-7451b66d7995","block_type":"box","text":"unreliable. The possibility of fraud, negligence, undue influence being exerted by the issuer or refusal","page_number":140,"box":{"x":117,"y":211,"width":754,"height":12}},{"id":"0c301756-f11c-47fe-a14b-57027fe1cbf7","block_type":"box","text":"to recognize ownership exists in some emerging markets, and, along with other factors, could result in","page_number":140,"box":{"x":116,"y":227,"width":762,"height":12}},{"id":"351d3389-6a76-462e-bec9-d49c845e143d","block_type":"box","text":"ownership registration being completely lost. A Fund would absorb any loss resulting from such","page_number":140,"box":{"x":116,"y":242,"width":712,"height":12}},{"id":"abd216ab-364a-4d2c-9a4c-aa9ea576b2bd","block_type":"box","text":"registration problems and may have no successful claim for compensation.","page_number":140,"box":{"x":117,"y":258,"width":560,"height":12}},{"id":"793b661a-1ae8-4e4d-96b1-0ec764cb50db","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging","page_number":140,"box":{"x":117,"y":289,"width":755,"height":12}},{"id":"26bd0aa7-b6e1-406f-9a2b-9b779dcb42ae","block_type":"box","text":"market countries may be on either a currency hedged or unhedged basis, and the Funds may hold","page_number":140,"box":{"x":117,"y":304,"width":735,"height":12}},{"id":"d00bfd23-fafb-44c0-ba39-248537793db7","block_type":"box","text":"from time to time various foreign currencies pending investment or conversion into U.S. dollars. Some","page_number":140,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"c7cb316c-db47-43a3-8cca-f1625abd18ed","block_type":"box","text":"of these instruments may have the characteristics of futures contracts. In addition, certain Funds may","page_number":140,"box":{"x":116,"y":335,"width":757,"height":12}},{"id":"a478cda0-0d24-4a2f-9de8-4f946c1b9f0c","block_type":"box","text":"engage in foreign currency exchange transactions to seek to protect against changes in the level of","page_number":140,"box":{"x":116,"y":351,"width":742,"height":12}},{"id":"728e025f-dd04-49f8-b906-b13ce4f194b1","block_type":"box","text":"future exchange rates which would adversely affect the Fund’s performance. These investments and","page_number":140,"box":{"x":116,"y":366,"width":752,"height":12}},{"id":"acdc7157-a6b7-46c3-a5d9-dee031bcf0f4","block_type":"box","text":"transactions involving foreign securities, currencies, options (including options that relate to foreign","page_number":140,"box":{"x":116,"y":382,"width":738,"height":12}},{"id":"801e5c6a-9fba-49e8-be3e-6ff9939f48ec","block_type":"box","text":"currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":140,"box":{"x":116,"y":397,"width":619,"height":12}},{"id":"91b3dcf9-43ff-401d-a9af-190ec9d917a3","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":140,"box":{"x":116,"y":428,"width":328,"height":12}},{"id":"980d9bc1-008a-4bc8-8252-ca20c5d610a0","block_type":"box","text":"In addition to the risks of foreign investing and the risks of","page_number":140,"box":{"x":445,"y":428,"width":432,"height":12}},{"id":"811b691a-a511-40be-9ad7-7cc4ce60076e","block_type":"box","text":"investing in developing markets, the developing market Asia-Pacific countries in which a Fund may","page_number":140,"box":{"x":117,"y":444,"width":738,"height":12}},{"id":"2228fb7b-8274-419e-9b02-f65f5b240303","block_type":"box","text":"invest are subject to certain additional or specific risks. Certain Funds may make substantial","page_number":140,"box":{"x":117,"y":459,"width":687,"height":12}},{"id":"45da4160-6ba8-4bcc-ae27-c67f6c3ff640","block_type":"box","text":"investments in Asia-Pacific countries. In many of these markets, there is a high concentration of market","page_number":140,"box":{"x":117,"y":475,"width":771,"height":12}},{"id":"497af1b4-6bdf-4272-8dac-b8a20249e2ca","block_type":"box","text":"capitalization and trading volume in a small number of issuers representing a limited number of","page_number":140,"box":{"x":116,"y":490,"width":710,"height":12}},{"id":"b91ef3f3-fe7f-4d52-af35-bc43557ff965","block_type":"box","text":"industries, as well as a high concentration of investors and financial intermediaries. Many of these","page_number":140,"box":{"x":117,"y":506,"width":730,"height":12}},{"id":"58d5dd88-1688-4c4f-80f4-55b098c90b61","block_type":"box","text":"markets also may be affected by developments with respect to more established markets in the region","page_number":140,"box":{"x":117,"y":521,"width":763,"height":12}},{"id":"78fb8a23-a9a9-4354-beef-986b0ccb1272","block_type":"box","text":"such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are","page_number":140,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"c5e000b0-11f6-489f-a878-483ae3df8342","block_type":"box","text":"fewer in number and less well capitalized than brokers in the United States. These factors, combined","page_number":140,"box":{"x":116,"y":552,"width":754,"height":12}},{"id":"d3054172-7ea4-4992-bcc6-2e138f102fa4","block_type":"box","text":"with the U.S. regulatory requirements for open-end investment companies and the restrictions on","page_number":140,"box":{"x":116,"y":568,"width":725,"height":12}},{"id":"a4311ab1-4740-4b11-b2a0-0a13ec0ea457","block_type":"box","text":"foreign investment discussed below, result in potentially fewer investment opportunities for a Fund and","page_number":140,"box":{"x":116,"y":583,"width":766,"height":12}},{"id":"d16b6610-31bb-4cac-9362-ddcda0f43465","block_type":"box","text":"may have an adverse impact on the investment performance of the Fund.","page_number":140,"box":{"x":117,"y":599,"width":550,"height":12}},{"id":"932258bf-6ace-4b05-a4c0-7751b5557704","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic,","page_number":140,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"a67ab42c-580a-428b-bc6f-6520d33e0615","block_type":"box","text":"political and social instability than is the case in the United States and Western European countries.","page_number":140,"box":{"x":117,"y":645,"width":743,"height":12}},{"id":"f4eb1028-362a-4fbc-a8ab-86f84f9878c4","block_type":"box","text":"Such instability may result from, among other things: (i) authoritarian governments or military","page_number":140,"box":{"x":116,"y":661,"width":688,"height":12}},{"id":"6a9e11fe-b50b-4c31-ad11-a8dba4806f64","block_type":"box","text":"involvement in political and economic decision-making, including changes in government through","page_number":140,"box":{"x":117,"y":676,"width":718,"height":12}},{"id":"f675392d-7b9b-4eb0-a22d-7dfcaf44bbc2","block_type":"box","text":"extra-constitutional means; (ii) popular unrest associated with demands for improved political,","page_number":140,"box":{"x":116,"y":692,"width":692,"height":12}},{"id":"8cd4cd45-678f-4495-8b73-b1db93fb0316","block_type":"box","text":"economic and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring","page_number":140,"box":{"x":116,"y":707,"width":704,"height":12}},{"id":"7f34d962-daec-4e56-9d88-2d45645b829a","block_type":"box","text":"countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of such","page_number":140,"box":{"x":116,"y":723,"width":763,"height":12}},{"id":"5d8f0322-5567-4242-8f4b-741be46dc0c4","block_type":"box","text":"countries, such as Indonesia, have a substantial role in regulating and supervising the economy.","page_number":140,"box":{"x":116,"y":738,"width":714,"height":12}},{"id":"dbee77c5-2099-4976-a01b-1fc0f37c1d33","block_type":"box","text":"Another risk common to most such countries is that the economy is heavily export oriented and,","page_number":140,"box":{"x":116,"y":754,"width":710,"height":12}},{"id":"70a9902b-2664-4e0d-8590-b8eaf2990b4f","block_type":"box","text":"accordingly, is dependent upon international trade. The existence of overburdened infrastructure and","page_number":140,"box":{"x":116,"y":769,"width":748,"height":12}},{"id":"6a61abe1-a23d-4c07-803a-6b7b9e5980e6","block_type":"box","text":"obsolete financial systems also presents risks in certain countries, as do environmental problems.","page_number":140,"box":{"x":116,"y":785,"width":724,"height":12}},{"id":"0eda43b8-7b9a-4d09-9c4b-26f228aa4648","block_type":"box","text":"Certain economies also depend to a significant degree upon exports of primary commodities and,","page_number":140,"box":{"x":117,"y":800,"width":721,"height":12}},{"id":"2f2ae42f-5589-48ad-872c-a47459e3f36d","block_type":"box","text":"therefore, are vulnerable to changes in commodity prices that, in turn, may be affected by a variety of","page_number":140,"box":{"x":116,"y":816,"width":752,"height":12}},{"id":"ecea5f55-80fa-47ff-9f8c-59cd766d351b","block_type":"box","text":"factors.","page_number":140,"box":{"x":116,"y":831,"width":60,"height":10}},{"id":"f3a1ad68-7ac1-443d-ac7b-52a3261a08cc","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse","page_number":140,"box":{"x":116,"y":862,"width":722,"height":12}},{"id":"6246772d-054f-401e-98f6-744dcef428a1","block_type":"box","text":"impact on the Fund. For example, while the potential liability of a shareholder in a U.S. corporation with","page_number":140,"box":{"x":117,"y":878,"width":769,"height":12}},{"id":"ab598f5b-c538-4cd8-b0fd-12628fd0e89a","block_type":"box","text":"II-46","page_number":140,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c42d6115-517b-4575-9aa9-6ec65a24efaa","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":140,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c79a4500-1c25-4517-97ea-72bbc5eaad82","block_type":"box","text":"respect to acts of the corporation is generally limited to the amount of the shareholder’s investment, the","page_number":141,"box":{"x":117,"y":87,"width":771,"height":12}},{"id":"643a51c7-b071-4b13-a0a2-67a2a2c1d8a7","block_type":"box","text":"notion of limited liability is less clear in certain emerging market Asia-Pacific countries. Similarly, the","page_number":141,"box":{"x":117,"y":102,"width":744,"height":13}},{"id":"88c11a10-2cd6-4e2f-ad64-a25454902ba1","block_type":"box","text":"rights of investors in developing market Asia-Pacific companies may be more limited than those of","page_number":141,"box":{"x":117,"y":118,"width":732,"height":12}},{"id":"092741f2-93b7-4e63-9bef-39979fe8b482","block_type":"box","text":"shareholders of U.S. corporations. It may be difficult or impossible to obtain and/or enforce a judgment","page_number":141,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"36550685-e868-4ec5-a68e-cf8f9f5a3cb6","block_type":"box","text":"in a developing market Asia-Pacific country.","page_number":141,"box":{"x":117,"y":149,"width":330,"height":12}},{"id":"df13eb41-dc66-4639-8b2f-91f97064ac8e","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to","page_number":141,"box":{"x":117,"y":180,"width":714,"height":12}},{"id":"cfbfc46a-9e63-423a-96e1-6cd79bc96998","block_type":"box","text":"exercise substantial influence over many aspects of the private sector. In certain cases, the","page_number":141,"box":{"x":116,"y":196,"width":683,"height":12}},{"id":"ed276b0a-1ca4-49d0-8dfd-89006fb7a77c","block_type":"box","text":"government owns or controls many companies, including the largest in the country. Accordingly,","page_number":141,"box":{"x":116,"y":211,"width":718,"height":12}},{"id":"20423221-bf2e-4d9f-93ea-1022e7bf6db5","block_type":"box","text":"government actions in the future could have a significant effect on economic conditions in developing","page_number":141,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"360bf9ba-4769-445d-8c6f-d06339c116ce","block_type":"box","text":"market Asia-Pacific countries, which could affect private sector companies and a Fund itself, as well as","page_number":141,"box":{"x":117,"y":242,"width":768,"height":12}},{"id":"48dfc8d0-740c-42be-b099-6c6c2e6d44e4","block_type":"box","text":"the value of securities in the Fund’s portfolio. In addition, economic statistics of developing market","page_number":141,"box":{"x":116,"y":258,"width":731,"height":12}},{"id":"3fa80bc3-1db9-4694-837d-d1408934fac9","block_type":"box","text":"Asia-Pacific countries may be less reliable than economic statistics of more developed nations.","page_number":141,"box":{"x":116,"y":273,"width":710,"height":12}},{"id":"c795086f-4840-46a6-b461-8a993af9d6e9","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific","page_number":141,"box":{"x":117,"y":304,"width":741,"height":12}},{"id":"d2f1f699-02f5-417a-877d-32748f997e43","block_type":"box","text":"issuers and the possibility that such issuers may not be subject to the same accounting, auditing and","page_number":141,"box":{"x":117,"y":320,"width":752,"height":12}},{"id":"6bef7bb1-f9d6-4ac6-a48d-323e27cf2199","block_type":"box","text":"financial reporting standards as U.S. companies, inflation accounting rules in some developing market","page_number":141,"box":{"x":116,"y":335,"width":762,"height":12}},{"id":"eec51949-64e8-4daa-94ac-2ac84faa129d","block_type":"box","text":"Asia-Pacific countries require companies that keep accounting records in the local currency, for both","page_number":141,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"40c9c513-399b-4916-98c5-1cb8fe0f4de0","block_type":"box","text":"tax and accounting purposes, to restate certain assets and liabilities on the company’s balance sheet","page_number":141,"box":{"x":116,"y":366,"width":755,"height":12}},{"id":"6acf8eb2-6a63-44b7-b330-545aa4aafa3b","block_type":"box","text":"in order to express items in terms of currency of constant purchasing power. Inflation accounting may","page_number":141,"box":{"x":117,"y":382,"width":756,"height":12}},{"id":"44fc98a8-c4df-4967-b2af-9b4b61201645","block_type":"box","text":"indirectly generate losses or profits for certain developing market Asia-Pacific companies.","page_number":141,"box":{"x":117,"y":397,"width":669,"height":12}},{"id":"c763618d-4063-4986-b8ed-f8d7d14a929c","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia","page_number":141,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"244f4429-4a47-46d7-8309-bd9645aaff6b","block_type":"box","text":"Pacific countries, which may result in the Fund incurring additional costs and delays in providing","page_number":141,"box":{"x":117,"y":444,"width":716,"height":12}},{"id":"e4d2e7f7-d7b4-43ce-9218-1d770c28d440","block_type":"box","text":"transportation and custody services for such securities outside such countries.","page_number":141,"box":{"x":116,"y":459,"width":586,"height":12}},{"id":"efec8df8-b29f-4110-b155-578acdee1755","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially","page_number":141,"box":{"x":117,"y":490,"width":738,"height":12}},{"id":"7fcd71d2-581f-45fb-ad4f-e5148010259a","block_type":"box","text":"large debtors to commercial banks and foreign governments.","page_number":141,"box":{"x":117,"y":506,"width":456,"height":12}},{"id":"72ad2a2d-7266-4244-94d4-1528cba32394","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and","page_number":141,"box":{"x":117,"y":537,"width":705,"height":12}},{"id":"c0a14a5f-bb9d-4d6a-bd10-798f5b00219d","block_type":"box","text":"negative impact on a Fund’s investment portfolio and, in the longer term, could impair the ability of","page_number":141,"box":{"x":117,"y":552,"width":732,"height":12}},{"id":"7bc3979c-fd2f-47f1-b33f-eb4e654338aa","block_type":"box","text":"issuers in which the Fund invests to conduct their businesses in the manner normally conducted.","page_number":141,"box":{"x":117,"y":568,"width":722,"height":12}},{"id":"bfeef1a2-7f76-4c37-a771-e8a11c778593","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may","page_number":141,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"bcad796e-6f63-4e55-95e5-f902ff73ca39","block_type":"box","text":"not be practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may","page_number":141,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"fb2ce1e4-9c30-48ec-974f-4d88afc72187","block_type":"box","text":"invest in countries in which foreign investors, including management of the Fund, have had no or","page_number":141,"box":{"x":117,"y":630,"width":722,"height":12}},{"id":"c0d016a8-53b2-4fc7-9e2e-95b406dbf6b5","block_type":"box","text":"limited prior experience.","page_number":141,"box":{"x":117,"y":645,"width":182,"height":12}},{"id":"d72cc7c1-17ea-495c-a249-6fd392786f73","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":141,"box":{"x":116,"y":676,"width":458,"height":12}},{"id":"a0de14bc-f6ab-40fc-90c0-18e07514270d","block_type":"box","text":"Some developing Asia-Pacific countries","page_number":141,"box":{"x":581,"y":676,"width":294,"height":12}},{"id":"ed8bb3f8-f4c9-4eda-97cf-c50e41a77ee8","block_type":"box","text":"prohibit or impose substantial restrictions on investments in their capital markets, particularly their","page_number":141,"box":{"x":117,"y":692,"width":723,"height":12}},{"id":"6b505ca1-4791-4b1a-ba11-7bbefc4b2a37","block_type":"box","text":"equity markets, by foreign entities such as a Fund. As illustrations, certain countries may require","page_number":141,"box":{"x":116,"y":707,"width":714,"height":12}},{"id":"2d715c73-6971-4016-ae07-bcfaf235a804","block_type":"box","text":"governmental approval prior to investments by foreign persons or limit the amount of investment by","page_number":141,"box":{"x":116,"y":723,"width":736,"height":12}},{"id":"4a12ead4-2922-4855-8351-81a27280d1c2","block_type":"box","text":"foreign persons in a particular company or limit the investment by foreign persons to only a specific","page_number":141,"box":{"x":116,"y":738,"width":735,"height":12}},{"id":"c966de23-3829-4bab-90c5-87955538cf97","block_type":"box","text":"class of securities of a company which may have less advantageous terms (including price and","page_number":141,"box":{"x":116,"y":754,"width":705,"height":12}},{"id":"63212e5a-5d6f-4a3c-b86a-99368f0187db","block_type":"box","text":"shareholder rights) than securities of the company available for purchase by nationals. There can be","page_number":141,"box":{"x":116,"y":769,"width":745,"height":12}},{"id":"d4a7721f-1ab6-4e92-9766-31ce3ebfd202","block_type":"box","text":"no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In","page_number":141,"box":{"x":117,"y":785,"width":762,"height":12}},{"id":"b430bfe1-9b60-4f87-b7b4-f7dad9d73495","block_type":"box","text":"addition, changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of","page_number":141,"box":{"x":116,"y":800,"width":765,"height":12}},{"id":"567b30ee-4db2-494a-8783-f8f7294ae396","block_type":"box","text":"such securities may have an adverse effect on the value of such shares. Certain countries may restrict","page_number":141,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"6340da27-d26d-4cec-bbaf-b0f78c3dbaa1","block_type":"box","text":"investment opportunities in issuers or industries deemed important to national interests.","page_number":141,"box":{"x":117,"y":831,"width":654,"height":12}},{"id":"e96f8fb8-10d6-47bd-9646-d197d17c05c1","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific","page_number":141,"box":{"x":116,"y":862,"width":729,"height":12}},{"id":"d467c4b3-b924-4c87-a712-04c374b1b90a","block_type":"box","text":"countries, as well as limitations on such investments, also may have an adverse impact on the","page_number":141,"box":{"x":116,"y":878,"width":705,"height":12}},{"id":"07e4d855-df5f-4305-b233-caa7de42a4a9","block_type":"box","text":"II-47","page_number":141,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"1b536dd3-6029-4579-96fa-750898a45fe4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":141,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"21a6aec6-2174-45bc-aa84-f36bd05d9b9b","block_type":"box","text":"operations of a Fund. For example, a Fund may be required in certain of such countries to invest","page_number":142,"box":{"x":116,"y":87,"width":722,"height":12}},{"id":"f3c5d74d-8ff1-4c75-8111-25509666a97f","block_type":"box","text":"initially through a local broker or other entity and then have the shares purchased re-registered in the","page_number":142,"box":{"x":117,"y":103,"width":753,"height":12}},{"id":"67c4e6c5-4c3b-458a-b28e-34e6c85aff3c","block_type":"box","text":"name of the Fund. Re-registration may in some instances not be able to occur on a timely basis,","page_number":142,"box":{"x":117,"y":118,"width":718,"height":12}},{"id":"6e047013-8cf9-4aef-aaad-7154664eebbb","block_type":"box","text":"resulting in a delay during which a Fund may be denied certain of its rights as an investor, including","page_number":142,"box":{"x":117,"y":134,"width":742,"height":12}},{"id":"b9fb5bf4-1ac9-4319-bcf7-16ef12f13be1","block_type":"box","text":"rights as to dividends or to be made aware of certain corporate actions. There also may be instances","page_number":142,"box":{"x":117,"y":149,"width":753,"height":12}},{"id":"3a306fe2-4887-442f-8f57-e51c0b910939","block_type":"box","text":"where a Fund places a purchase order but is subsequently informed, at the time of re-registration, that","page_number":142,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"8870675a-83eb-45b5-b9aa-32824c919635","block_type":"box","text":"the permissible allocation of the investment to foreign investors has been filled, depriving the Fund of","page_number":142,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"bf659d36-1aa6-428e-b33d-dd827f4120b9","block_type":"box","text":"the ability to make its desired investment at that time.","page_number":142,"box":{"x":116,"y":196,"width":400,"height":12}},{"id":"5198c6f4-da03-477a-8214-b38cbe833d12","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate","page_number":142,"box":{"x":116,"y":227,"width":714,"height":12}},{"id":"f585ca59-b1f4-4010-b643-08b483f50598","block_type":"box","text":"investment income, capital or the proceeds of sales of securities by foreign investors. A Fund could be","page_number":142,"box":{"x":117,"y":242,"width":763,"height":12}},{"id":"b12b83e2-4997-420c-b274-fe3d83f7ed0a","block_type":"box","text":"adversely affected by delays in, or a refusal to grant, any required governmental approval for","page_number":142,"box":{"x":116,"y":258,"width":693,"height":12}},{"id":"e60f9f3f-5c24-4839-a03f-b6c51b0cd8a4","block_type":"box","text":"repatriation of capital, as well as by the application to the Fund of any restrictions on investments. It is","page_number":142,"box":{"x":117,"y":273,"width":759,"height":12}},{"id":"f86ceab0-2d85-453c-8f37-8b3be5319080","block_type":"box","text":"possible that certain countries may impose currency controls or other restrictions relating to their","page_number":142,"box":{"x":117,"y":289,"width":719,"height":12}},{"id":"2933e575-e76b-4661-9c03-7f75ef161515","block_type":"box","text":"currencies or to securities of issuers in those countries. To the extent that such restrictions have the","page_number":142,"box":{"x":116,"y":304,"width":746,"height":10}},{"id":"0427ea1f-7fab-452e-933f-5345fe3b6ea3","block_type":"box","text":"effect of making certain investments illiquid, securities may not be available for sale to meet","page_number":142,"box":{"x":116,"y":320,"width":685,"height":12}},{"id":"583d7424-bfbc-46e4-aee9-4727a949d8a6","block_type":"box","text":"redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":142,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"c4fb9fce-5384-403e-9052-0ed840d5090f","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the","page_number":142,"box":{"x":116,"y":351,"width":763,"height":12}},{"id":"7a55f8f3-49da-4df6-b1b1-b5e66207960e","block_type":"box","text":"Fund’s assets that may be used to meet redemptions may be further decreased. Even where there is","page_number":142,"box":{"x":117,"y":366,"width":754,"height":12}},{"id":"e69931b6-2c04-4e21-92dc-0d98ae039103","block_type":"box","text":"no outright restriction on repatriation of capital, the mechanics of repatriation may affect certain aspects","page_number":142,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"026a14aa-e66a-488c-8803-58dd2f48b6b3","block_type":"box","text":"of the operations of a Fund (for example, if funds may be withdrawn only in certain currencies and/or","page_number":142,"box":{"x":116,"y":397,"width":751,"height":12}},{"id":"216b93fd-c897-4d28-a967-43e790aa3e96","block_type":"box","text":"only at an exchange rate established by the government).","page_number":142,"box":{"x":116,"y":413,"width":433,"height":12}},{"id":"4d45c5d5-ecac-4124-a922-93b6445cc1e1","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have","page_number":142,"box":{"x":117,"y":444,"width":763,"height":12}},{"id":"114b3d04-6aad-4687-8d3f-e2f2f479ed7c","block_type":"box","text":"actively traded securities available for investment. The Investment Company Act restricts a Fund’s","page_number":142,"box":{"x":116,"y":459,"width":734,"height":12}},{"id":"6f6cf283-e8b2-4611-a96d-30e8885c45fb","block_type":"box","text":"investments in any equity securities of an issuer that, in its most recent fiscal year, derived more than","page_number":142,"box":{"x":117,"y":475,"width":755,"height":12}},{"id":"2c7be08b-1fb2-4c70-8653-b47e2b9df680","block_type":"box","text":"15% of its revenues from “securities related activities,” as defined by the rules thereunder. These","page_number":142,"box":{"x":118,"y":490,"width":722,"height":12}},{"id":"f8128998-0123-440c-a8df-1a72197e0d3a","block_type":"box","text":"provisions may restrict a Fund’s investments in certain foreign banks and other financial institutions.","page_number":142,"box":{"x":117,"y":506,"width":744,"height":12}},{"id":"9e1c280b-ac33-4ba4-b424-0e1fd86d8841","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant","page_number":142,"box":{"x":117,"y":537,"width":699,"height":12}},{"id":"77b90739-1449-4d4c-a2e4-3a03444a229a","block_type":"box","text":"evolution and rapid development, and these countries may lack the social, political and economic","page_number":142,"box":{"x":116,"y":552,"width":726,"height":12}},{"id":"a363d290-803c-4349-8f3e-de1f03c47020","block_type":"box","text":"stability characteristic of more developed countries. Some of these countries may have in the past","page_number":142,"box":{"x":116,"y":568,"width":732,"height":12}},{"id":"05f4c1d4-1c57-4eb6-b172-4f3965ee16e0","block_type":"box","text":"failed to recognize private property rights and have at times nationalized or expropriated the assets of","page_number":142,"box":{"x":116,"y":583,"width":759,"height":12}},{"id":"4e1ac92a-32ea-471c-9af4-26801e9d3a3e","block_type":"box","text":"private companies. As a result the risks described above, including the risks of nationalization or","page_number":142,"box":{"x":117,"y":599,"width":718,"height":12}},{"id":"5d26381e-0635-4a4f-87a9-9e26d915e5b2","block_type":"box","text":"expropriation of assets, may be heightened. In addition, unanticipated political or social developments","page_number":142,"box":{"x":116,"y":614,"width":760,"height":12}},{"id":"a058156e-410a-432c-a2c5-2c26b0910784","block_type":"box","text":"may affect the value of investments in these countries and the availability to a Fund of additional","page_number":142,"box":{"x":117,"y":630,"width":718,"height":12}},{"id":"21698879-c7a8-4f38-b967-352a8da5b5ac","block_type":"box","text":"investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":142,"box":{"x":117,"y":645,"width":770,"height":12}},{"id":"336202a9-2df0-414f-95eb-01096650ae26","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make","page_number":142,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"8cf5874d-0e95-472c-affb-6ab403b6a93c","block_type":"box","text":"investments in the countries illiquid and more volatile than investments in Japan or most Western","page_number":142,"box":{"x":117,"y":676,"width":719,"height":12}},{"id":"acffe8eb-81fc-4182-9193-9d711b62ac62","block_type":"box","text":"European countries. There may be little financial or accounting information available with respect to","page_number":142,"box":{"x":117,"y":692,"width":736,"height":12}},{"id":"18e23785-1ad3-4e0a-a2e5-d9d4ea803903","block_type":"box","text":"issuers located in certain emerging market countries, and it may be difficult to assess the value or","page_number":142,"box":{"x":117,"y":707,"width":724,"height":12}},{"id":"1efc1cbd-0352-4abe-ac2b-f85944fb2e16","block_type":"box","text":"prospects of an investment in such issuers.","page_number":142,"box":{"x":117,"y":723,"width":319,"height":12}},{"id":"f713c0a9-bf7b-48a6-8960-11fc127fda84","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be","page_number":142,"box":{"x":116,"y":754,"width":723,"height":12}},{"id":"f4b430f3-c214-45ea-9e30-19a3e8cf905a","block_type":"box","text":"higher than those of Funds investing primarily in domestic securities. The costs attributable to investing","page_number":142,"box":{"x":117,"y":769,"width":763,"height":12}},{"id":"b0d16e27-8072-4fdd-92fc-4bc0028b6707","block_type":"box","text":"abroad are usually higher for several reasons, such as the higher cost of custody of foreign securities,","page_number":142,"box":{"x":116,"y":785,"width":755,"height":12}},{"id":"dd390a25-383c-4874-bd24-0334d3134dd7","block_type":"box","text":"higher commissions paid on comparable transactions on foreign markets and additional costs arising","page_number":142,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"abae2cf5-79c0-4e1b-aa92-76ef534a3429","block_type":"box","text":"from delays in settlements of transactions involving foreign securities.","page_number":142,"box":{"x":116,"y":816,"width":515,"height":12}},{"id":"40aaa54d-dc1e-4b02-9a38-de5b9220b993","block_type":"box","text":"Risks of Investments in Russia.","page_number":142,"box":{"x":116,"y":847,"width":232,"height":9}},{"id":"e1ddb8c8-80ee-4770-9622-c0c74b38e37d","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by","page_number":142,"box":{"x":350,"y":847,"width":482,"height":12}},{"id":"da624618-7307-4b01-9476-4f76edfda46d","block_type":"box","text":"companies located in Russia. The Russian securities market suffers from a variety of problems","page_number":142,"box":{"x":116,"y":862,"width":709,"height":12}},{"id":"e34470a2-3622-4d1f-a2d1-ad7f39936ff9","block_type":"box","text":"described above in “Investment in Emerging Markets” not encountered in more developed markets.","page_number":142,"box":{"x":116,"y":878,"width":742,"height":12}},{"id":"31347ab2-78c3-41cb-8679-44f65b250e2a","block_type":"box","text":"II-48","page_number":142,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"35909efc-79e3-43bb-a51e-c07555f1f540","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":142,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ded6d6fa-934a-4bc4-b22d-a0f9a038b364","block_type":"box","text":"The Russian securities market is relatively new, and a substantial portion of securities transactions in","page_number":143,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"088e837a-c559-4f31-983c-c6f41e9edb47","block_type":"box","text":"Russia are privately negotiated outside of stock exchanges. The inexperience of the Russian securities","page_number":143,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"08c10a59-8094-4673-83a4-7bed8583742d","block_type":"box","text":"market and the limited volume of trading in securities in the market may make obtaining accurate","page_number":143,"box":{"x":117,"y":118,"width":723,"height":12}},{"id":"e09e377b-00de-444c-92cc-5380b43e94c4","block_type":"box","text":"prices on portfolio securities from independent sources more difficult than in more developed markets.","page_number":143,"box":{"x":117,"y":134,"width":761,"height":11}},{"id":"d7206e6f-3630-48ae-a732-5c22878d0ec3","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and","page_number":143,"box":{"x":117,"y":165,"width":639,"height":12}},{"id":"f56a9292-f47b-4cd5-86ee-e20c525b11be","block_type":"box","text":"telecommunication systems, settlement, clearing and registration of securities transactions are subject","page_number":143,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"b0665c64-d4be-4fbe-b1c0-4b641e547b2d","block_type":"box","text":"to additional risks. Prior to 2013, there was no central registration system for equity share registration","page_number":143,"box":{"x":116,"y":196,"width":756,"height":12}},{"id":"ec76c0be-86d9-4dcf-9dd8-c842dd702058","block_type":"box","text":"in Russia and registration was carried out either by the issuers themselves or by registrars located","page_number":143,"box":{"x":117,"y":211,"width":733,"height":12}},{"id":"966eca2d-dc22-410d-92cf-fc36746b33ce","block_type":"box","text":"throughout Russia. These registrars may not have been subject to effective state supervision or","page_number":143,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"ada94416-e8ad-475c-a217-7911e02a3665","block_type":"box","text":"licensed with any governmental entity. In 2013, Russia established the National Settlement Depository","page_number":143,"box":{"x":117,"y":242,"width":764,"height":12}},{"id":"66db5588-d956-4629-ac11-b9cf3d1eb98f","block_type":"box","text":"(“NSD”) as a recognized central securities depository, and title to Russian equities held through the","page_number":143,"box":{"x":117,"y":258,"width":740,"height":12}},{"id":"8e785a74-975a-47ab-ad33-66d0f5d939dc","block_type":"box","text":"NSD is now based on the records of the NSD and not on the records of the local registrars. Although","page_number":143,"box":{"x":117,"y":273,"width":751,"height":12}},{"id":"47436744-7e90-45b0-a8dd-2af6a2a4c9a3","block_type":"box","text":"the implementation of the NSD has enhanced the efficiency and transparency of the Russian securities","page_number":143,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"41fd8ca0-08c5-4c96-bca0-06fbd54cd032","block_type":"box","text":"market, loss still can occur. Additionally, issuers and registrars remain prominent in the validation and","page_number":143,"box":{"x":117,"y":304,"width":757,"height":12}},{"id":"fa72f458-75c7-4098-a9d1-fac364420302","block_type":"box","text":"approval of documentation requirements for corporate action processing in Russia, and, because the","page_number":143,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"79ee0e98-bc01-4b09-81f3-584fbcadf6eb","block_type":"box","text":"documentation requirements and approval criteria vary between registrars and issuers, there remain","page_number":143,"box":{"x":116,"y":335,"width":749,"height":12}},{"id":"d2bc0412-f059-4597-a06b-db735b9df879","block_type":"box","text":"inconsistent market standards in the Russian market with respect to the completion and submission of","page_number":143,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"40fd576b-43a3-4f44-a038-513e05284ed7","block_type":"box","text":"corporate action elections. To the extent that a Fund suffers a loss relating to title or corporate actions","page_number":143,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"41289ef5-f0ca-4fd6-9756-73b768afece3","block_type":"box","text":"relating to its portfolio securities, it may be difficult for the Fund to enforce its rights or otherwise","page_number":143,"box":{"x":117,"y":382,"width":713,"height":12}},{"id":"ec4ed496-ad30-4bef-a3ab-e2aa9e5ee87f","block_type":"box","text":"remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":143,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"20f36217-c258-4ab6-89c4-f2f6c160b3c9","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held","page_number":143,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"fa85bf30-0b10-4038-b200-636f459c98c2","block_type":"box","text":"on behalf of their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments","page_number":143,"box":{"x":116,"y":428,"width":770,"height":12}},{"id":"9812ad39-bcfa-4692-8e4c-73432251eb56","block_type":"box","text":"in Russia.","page_number":143,"box":{"x":117,"y":444,"width":77,"height":9}},{"id":"723014f8-8066-4385-a9e5-739064e19b4f","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military","page_number":143,"box":{"x":117,"y":475,"width":708,"height":12}},{"id":"f231ecde-511d-4d87-a164-e544ed57b293","block_type":"box","text":"measures, as it did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia","page_number":143,"box":{"x":117,"y":490,"width":735,"height":12}},{"id":"90cf7bd4-6275-4f85-9a8c-e17a1886649d","block_type":"box","text":"launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the","page_number":143,"box":{"x":117,"y":506,"width":720,"height":12}},{"id":"dbeee583-ffa4-4b99-b459-ac459edf5208","block_type":"box","text":"military action, resulting sanctions and resulting future market disruptions, including declines in its","page_number":143,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"3cfb928d-5a68-4c55-8d8d-c9bd06591ead","block_type":"box","text":"stock markets and the value of the ruble against the U.S. dollar, are impossible to predict. Any such","page_number":143,"box":{"x":116,"y":537,"width":744,"height":12}},{"id":"8138f9ad-269a-43e5-8fae-aaa95ce2650d","block_type":"box","text":"disruptions caused by Russian military action or other actions (including cyberattacks and espionage)","page_number":143,"box":{"x":116,"y":552,"width":757,"height":12}},{"id":"1ba064e5-6c48-4419-bae1-f5e059427e46","block_type":"box","text":"or resulting actual and threatened responses to such activity, including purchasing and financing","page_number":143,"box":{"x":116,"y":568,"width":720,"height":12}},{"id":"3092915e-3146-4ffc-a174-bb0a68afff20","block_type":"box","text":"restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or","page_number":143,"box":{"x":117,"y":583,"width":685,"height":12}},{"id":"3ddb2667-fc3c-416c-a0f5-81c6028d9bb8","block_type":"box","text":"cyberattacks on the Russian government, Russian companies or Russian individuals, including","page_number":143,"box":{"x":116,"y":599,"width":710,"height":12}},{"id":"416e691a-8c99-4778-b2ba-2887ded0f394","block_type":"box","text":"politicians, may impact Russia’s economy and Russian issuers of securities in which the Fund invests.","page_number":143,"box":{"x":117,"y":614,"width":763,"height":12}},{"id":"01c3d258-7277-40fc-b6ab-264464e17b83","block_type":"box","text":"Actual and threatened responses to such activity, including purchasing restrictions, sanctions, tariffs or","page_number":143,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"204f35b1-3bf7-4861-b57a-2f310115880b","block_type":"box","text":"cyberattacks on the Russian government or Russian companies, may impact Russia’s economy and","page_number":143,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"d3723097-0e7e-4d83-8993-983c0dce427f","block_type":"box","text":"Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":143,"box":{"x":117,"y":661,"width":720,"height":12}},{"id":"7f16572b-8b3d-4d5e-b2f2-79abe28541e9","block_type":"box","text":"military action may also impact the markets for certain Russian commodities, such as oil and natural","page_number":143,"box":{"x":117,"y":676,"width":741,"height":12}},{"id":"a65448a6-0806-4174-bfb5-4d275661cde6","block_type":"box","text":"gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":143,"box":{"x":116,"y":692,"width":752,"height":12}},{"id":"b8b4c972-6909-4b48-bf85-999a445c7fb4","block_type":"box","text":"sectors globally.","page_number":143,"box":{"x":116,"y":707,"width":119,"height":12}},{"id":"71ba64fa-f63a-4df4-82b9-d538deed01a9","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”)","page_number":143,"box":{"x":117,"y":738,"width":735,"height":12}},{"id":"998f1cf4-0d7d-4dc5-acfc-950d7153966a","block_type":"box","text":"have imposed economic sanctions, which can consist of prohibiting certain securities trades, certain","page_number":143,"box":{"x":117,"y":754,"width":739,"height":12}},{"id":"f719d83e-9c8f-4c9e-ad0e-0dc10f1246a1","block_type":"box","text":"private transactions in the energy sector, asset freezes and prohibition of all business, against certain","page_number":143,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"b5f8d321-cc93-45fa-9956-d36960521f60","block_type":"box","text":"Russian individuals, including politicians, and Russian corporate and banking entities. The Sanctioning","page_number":143,"box":{"x":117,"y":785,"width":760,"height":12}},{"id":"5576baac-5636-4c21-b530-f7662fe75965","block_type":"box","text":"Bodies, or others, could also institute broader sanctions on Russia, including banning Russia from","page_number":143,"box":{"x":117,"y":800,"width":725,"height":12}},{"id":"2518e1a6-00c3-468c-b012-b5020bd4a508","block_type":"box","text":"global payments systems that facilitate cross-border payments. These sanctions, or even the threat of","page_number":143,"box":{"x":116,"y":816,"width":758,"height":12}},{"id":"7385d701-0386-4410-bb71-ec35acb67044","block_type":"box","text":"further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening","page_number":143,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"42d24dc5-cda6-47a7-b373-9c7b6fca7ce1","block_type":"box","text":"of the ruble or other adverse consequences to the Russian economy. These sanctions have resulted","page_number":143,"box":{"x":116,"y":847,"width":752,"height":12}},{"id":"b739fb51-c7f9-4000-b2a7-ff8fb721c423","block_type":"box","text":"and may continue to result in the immediate freeze of Russian securities and/or funds invested in","page_number":143,"box":{"x":116,"y":862,"width":725,"height":12}},{"id":"5251b5da-0e1d-4ee9-9313-6423ab95cbff","block_type":"box","text":"prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or","page_number":143,"box":{"x":117,"y":878,"width":757,"height":12}},{"id":"b79b0af7-439c-44c0-98cc-43ef51d80669","block_type":"box","text":"II-49","page_number":143,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e8c44f8d-3083-4d0f-9db5-81683e9addeb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":143,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"40208f9b-1d9a-420e-ad3e-78f660fbc86c","block_type":"box","text":"assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":144,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"5291f1fe-b46d-40d4-abb9-580983bb47bb","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":144,"box":{"x":116,"y":102,"width":435,"height":13}},{"id":"66b895e3-969c-42b9-a4a0-f825591f5383","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":144,"box":{"x":116,"y":134,"width":253,"height":12}},{"id":"b28fee7e-839a-4735-8e67-39686888e945","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi","page_number":144,"box":{"x":371,"y":134,"width":497,"height":12}},{"id":"a524c721-8c01-4166-8da2-125fcefb00d9","block_type":"box","text":"Arabian issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian","page_number":144,"box":{"x":116,"y":149,"width":757,"height":12}},{"id":"7a6a336b-f1fe-43a9-9a78-94826be692e2","block_type":"box","text":"government at any time, and unforeseen risks could materialize due to foreign ownership in such","page_number":144,"box":{"x":116,"y":165,"width":724,"height":12}},{"id":"296cbc20-f6d2-4057-8371-b2969b966377","block_type":"box","text":"securities. In addition, the Capital Market Authority (“CMA”) places investment limitations on the","page_number":144,"box":{"x":116,"y":180,"width":715,"height":12}},{"id":"c373266e-21b9-4472-bc17-fb1a47ff0fbc","block_type":"box","text":"ownership of Saudi Arabian issuers by foreign investors, including a limitation on a Fund’s ownership","page_number":144,"box":{"x":116,"y":196,"width":753,"height":12}},{"id":"6e19a434-b239-42b9-bff3-beee05b9a391","block_type":"box","text":"of any single issuer listed on the Saudi Arabian Stock Exchange, which may prevent a Fund from","page_number":144,"box":{"x":116,"y":211,"width":726,"height":12}},{"id":"14a872be-fcfb-4a58-bb57-c9d78adee012","block_type":"box","text":"investing in accordance with its strategy and contribute to tracking error against the Underlying Index.","page_number":144,"box":{"x":117,"y":227,"width":757,"height":12}},{"id":"0b3a804f-8b9a-4b76-9870-2c204cdf1793","block_type":"box","text":"These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":144,"box":{"x":116,"y":242,"width":710,"height":12}},{"id":"7f154921-913d-4fa2-962d-fad29625896b","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain","page_number":144,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"c42da96c-6553-41ab-a922-fabd54420801","block_type":"box","text":"or maintain any such licenses or approvals and may not be able to buy and sell securities at full value.","page_number":144,"box":{"x":116,"y":273,"width":763,"height":12}},{"id":"94423f06-6e6b-4007-a317-f464e59b70b8","block_type":"box","text":"Major disruptions or regulatory changes could occur in the Saudi Arabian market, any of which could","page_number":144,"box":{"x":117,"y":289,"width":750,"height":12}},{"id":"cd5df6dd-7880-480a-b68d-f16afc921dd5","block_type":"box","text":"negatively impact a Fund. These risks may be exacerbated, compared to more developed markets,","page_number":144,"box":{"x":117,"y":304,"width":741,"height":12}},{"id":"622f7ea5-f605-485d-ba9d-e8e31772c75b","block_type":"box","text":"given the limited history of foreign investment in the Saudi Arabian market. Investments in","page_number":144,"box":{"x":116,"y":320,"width":672,"height":12}},{"id":"ad14124b-31ca-4ea1-ac84-e59b3ac888f2","block_type":"box","text":"Saudi Arabia may also be subject to loss due to expropriation or nationalization of assets and property","page_number":144,"box":{"x":116,"y":335,"width":764,"height":12}},{"id":"50a4a950-767a-44ed-ae73-5cbcbf01bd36","block_type":"box","text":"or the imposition of restrictions on additional foreign investments and repatriation of capital. Such","page_number":144,"box":{"x":116,"y":351,"width":725,"height":12}},{"id":"6e6315f6-0a3a-4f60-a69d-e5d47dc238f8","block_type":"box","text":"heightened risks may include, among others, restrictions on and government intervention in","page_number":144,"box":{"x":117,"y":366,"width":683,"height":12}},{"id":"3708e686-4cad-4901-a8f3-b65c782b55e7","block_type":"box","text":"international trade, confiscatory taxation, political instability, including authoritarian and/or military","page_number":144,"box":{"x":117,"y":382,"width":724,"height":12}},{"id":"557e6b44-b58d-4231-abaa-f38ec9f393e5","block_type":"box","text":"involvement in governmental decision making, armed conflict, crime and instability as a result of","page_number":144,"box":{"x":117,"y":397,"width":715,"height":12}},{"id":"8b197c14-7b63-4d0b-828d-6e1716ffc5b4","block_type":"box","text":"religious, ethnic and/or socioeconomic unrest. Saudi Arabia has privatized, or has begun the process","page_number":144,"box":{"x":117,"y":413,"width":754,"height":12}},{"id":"14a13120-3b3c-4032-808e-355dbed2b273","block_type":"box","text":"of privatizing, certain entities and industries. Newly privatized companies may face strong competition","page_number":144,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"77252644-ceec-411a-9cad-4b479a3e96e1","block_type":"box","text":"from government-sponsored competitors that have not been privatized. In some instances, investors in","page_number":144,"box":{"x":116,"y":444,"width":768,"height":12}},{"id":"fe5d7817-0159-4e12-b30e-89b387942d61","block_type":"box","text":"newly privatized entities have suffered losses due to the inability of the newly privatized entities to","page_number":144,"box":{"x":117,"y":459,"width":728,"height":12}},{"id":"44e980f7-ab6c-4b26-9c76-972faddd129c","block_type":"box","text":"adjust quickly to a competitive environment or changing regulatory and legal standards or, in some","page_number":144,"box":{"x":116,"y":475,"width":737,"height":12}},{"id":"8b1d5c78-e28e-4dab-b697-e07057a4a627","block_type":"box","text":"cases, due to re-nationalization of such privatized entities. There is no assurance that similar losses","page_number":144,"box":{"x":116,"y":490,"width":745,"height":12}},{"id":"dfb0712b-8e01-4ebd-81ac-c03b4f789915","block_type":"box","text":"will not recur. Further, under income tax laws imposed by the Department of Zakat and Income Tax,","page_number":144,"box":{"x":116,"y":506,"width":747,"height":12}},{"id":"4db8d370-9a6b-4692-8b7a-228a50c4c3b4","block_type":"box","text":"dividends paid by a Saudi Arabian company to foreign stockholders are generally subject to a 5%","page_number":144,"box":{"x":116,"y":521,"width":727,"height":12}},{"id":"c9cbe950-53d7-40cd-9785-ec9114c682e2","block_type":"box","text":"withholding tax (different tax rates may apply pursuant to an applicable treaty). Saudi Arabia is highly","page_number":144,"box":{"x":116,"y":537,"width":754,"height":12}},{"id":"9121d97c-ad89-4530-8482-8689e9faed5e","block_type":"box","text":"reliant on income from the sale of petroleum and trade with other countries involved in the sale of","page_number":144,"box":{"x":117,"y":552,"width":725,"height":12}},{"id":"17b8ebe6-8d5a-40cf-a5da-73ed8bb87b24","block_type":"box","text":"petroleum, and its economy is therefore vulnerable to changes in foreign currency values and the","page_number":144,"box":{"x":117,"y":568,"width":726,"height":12}},{"id":"a0b4a9a8-f472-4867-982d-ce093a45bbca","block_type":"box","text":"market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":144,"box":{"x":117,"y":583,"width":741,"height":12}},{"id":"d796b1f3-4785-4b5c-b1ff-1d57afd5d0c9","block_type":"box","text":"impacted.","page_number":144,"box":{"x":117,"y":599,"width":76,"height":12}},{"id":"69f54800-d99b-4017-a1c5-dd8dd35a794f","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial","page_number":144,"box":{"x":117,"y":630,"width":701,"height":12}},{"id":"d3d83ef7-ae45-4300-9497-6cf6c328d175","block_type":"box","text":"influence over many aspects of the private sector. Although liberalization in the wider economy is","page_number":144,"box":{"x":117,"y":645,"width":724,"height":12}},{"id":"2e479fd1-5f07-4d00-802f-38ed487d346f","block_type":"box","text":"underway, in many areas it has lagged significantly: restrictions on foreign ownership persist, and the","page_number":144,"box":{"x":117,"y":661,"width":749,"height":12}},{"id":"48eb7ae0-4afa-4f86-bc94-75c4fca8bb87","block_type":"box","text":"government has an ownership stake in many key industries. The situation is exacerbated by the fact","page_number":144,"box":{"x":116,"y":676,"width":743,"height":12}},{"id":"df2433ab-6caf-4896-ad1a-dbaa7ca08155","block_type":"box","text":"that Saudi Arabia is governed by an absolute monarchy. Saudi Arabia has historically experienced","page_number":144,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"cc7ed131-5ad9-4b48-804e-f66a6b8eb1ba","block_type":"box","text":"strained relations with economic partners worldwide, including other countries in the Middle East due to","page_number":144,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"a10152a2-b9ce-499c-ac15-54164e4d00e4","block_type":"box","text":"geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security, including","page_number":144,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"d3daa72a-a9f5-4a6f-a0f6-f474f1b53bca","block_type":"box","text":"terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":144,"box":{"x":116,"y":738,"width":752,"height":12}},{"id":"5f2dfb12-e7da-42b1-96af-0c22568b102a","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions","page_number":144,"box":{"x":117,"y":754,"width":761,"height":12}},{"id":"2dd345e7-e98d-4c0a-b357-93948273d400","block_type":"box","text":"in Saudi Arabia, which could affect private sector companies and a Fund, as well as the value of","page_number":144,"box":{"x":117,"y":769,"width":713,"height":12}},{"id":"7389bab2-ae6b-45f8-9aa6-2965423f04ba","block_type":"box","text":"securities in a Fund’s portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian","page_number":144,"box":{"x":116,"y":785,"width":759,"height":12}},{"id":"4d2845e1-98bd-4a54-b1a2-51281e2beefb","block_type":"box","text":"corporate entities, or even the threat of sanctions, may result in the decline of the value and liquidity of","page_number":144,"box":{"x":116,"y":800,"width":760,"height":12}},{"id":"e168fe24-fa43-47a3-b071-d2f992af3174","block_type":"box","text":"Saudi Arabian securities, a weakening of the Saudi riyal or other adverse consequences to the Saudi","page_number":144,"box":{"x":116,"y":816,"width":749,"height":12}},{"id":"e51d1bdb-ac80-45b7-92fd-ba5f2b475917","block_type":"box","text":"Arabian economy. In addition, Saudi Arabia’s economy relies heavily on cheap, foreign labor, and","page_number":144,"box":{"x":116,"y":831,"width":729,"height":12}},{"id":"74459346-daa3-4332-a5fe-cbb3861dfaa0","block_type":"box","text":"changes in the availability of this labor supply could have an adverse effect on the economy.","page_number":144,"box":{"x":116,"y":847,"width":690,"height":12}},{"id":"8af01449-7947-4fd6-9296-a82995b4c8da","block_type":"box","text":"II-50","page_number":144,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"88eb86aa-e535-40da-a79a-3a282dc445bb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":144,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d650ef12-adc7-4a39-803a-3877a694fc2e","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a","page_number":145,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"002eb136-8e48-4445-9af1-2cdfebfee617","block_type":"box","text":"result, securities markets in Saudi Arabia are subject to greater risks associated with market volatility,","page_number":145,"box":{"x":117,"y":102,"width":757,"height":13}},{"id":"bf6f773c-4d70-44c9-bf35-f1be443cdba5","block_type":"box","text":"lower market capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations,","page_number":145,"box":{"x":117,"y":118,"width":705,"height":12}},{"id":"313b12c9-37a6-4129-a91e-4e4aee4ee359","block_type":"box","text":"uncertainty regarding the existence of trading markets, governmental control and heavy regulation of","page_number":145,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"9befada1-2c19-435b-ae40-1f3c580fd31c","block_type":"box","text":"labor and industry. Shares of certain Saudi Arabian companies tend to trade less frequently than those","page_number":145,"box":{"x":117,"y":149,"width":766,"height":12}},{"id":"4822b7cf-fc94-4db1-8d32-7081b3c575c9","block_type":"box","text":"of companies on exchanges in more developed markets. Such infrequent trading may adversely affect","page_number":145,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"e8582fd5-78cb-440c-8c9d-815031f8d4ed","block_type":"box","text":"the pricing of these securities and a Fund’s ability to sell these securities in the future. Current","page_number":145,"box":{"x":116,"y":180,"width":701,"height":12}},{"id":"d2a6585c-aedd-4eaf-8bcd-c93961b51eeb","block_type":"box","text":"regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":145,"box":{"x":117,"y":196,"width":733,"height":12}},{"id":"ea2bb419-dfae-446b-9869-4757d0106dd0","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a","page_number":145,"box":{"x":116,"y":211,"width":767,"height":12}},{"id":"9e89edec-323c-45cc-8c61-8b370e483875","block_type":"box","text":"Fund than is typically the case for investment managers.","page_number":145,"box":{"x":117,"y":227,"width":424,"height":12}},{"id":"fa64f0df-0265-43b1-95d4-4b0c8fe4d188","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically","page_number":145,"box":{"x":116,"y":258,"width":687,"height":12}},{"id":"adadd692-8687-4195-85ee-f93f2128b601","block_type":"box","text":"experienced political instability, and there remains the possibility that the stability will not hold in the","page_number":145,"box":{"x":116,"y":273,"width":741,"height":12}},{"id":"15c37a32-f1d3-4417-9e00-59e6a1f345a1","block_type":"box","text":"future or that instability in the larger Middle East region could adversely impact the economy of Saudi","page_number":145,"box":{"x":116,"y":289,"width":755,"height":12}},{"id":"a3a2dbba-52d3-4b13-99f5-489d766c2965","block_type":"box","text":"Arabia. Instability may be caused by military developments, government interventions in the","page_number":145,"box":{"x":116,"y":304,"width":686,"height":12}},{"id":"94cd3f97-17fe-4ece-8e64-c745848b10bc","block_type":"box","text":"marketplace, terrorism, extremist attitudes, attempted social or political reforms, religious differences,","page_number":145,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"01b29b66-3b5c-47d8-b7d2-c13df9a99c83","block_type":"box","text":"or other factors. Additionally, anti-Western views held by certain groups in the Middle East may","page_number":145,"box":{"x":116,"y":335,"width":710,"height":12}},{"id":"af637c41-5ef7-4742-8b60-14a74b8fadd9","block_type":"box","text":"influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":145,"box":{"x":117,"y":351,"width":740,"height":12}},{"id":"5391e62b-a1ab-4317-9aac-389989a81db2","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S.","page_number":145,"box":{"x":116,"y":366,"width":768,"height":12}},{"id":"ef924c7d-0d1e-4fa1-96d4-e010143cc2c0","block_type":"box","text":"is a significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi","page_number":145,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"bf48941c-7708-4f26-9d8b-c8cfe4ffb11c","block_type":"box","text":"Arabia. As a result, economic conditions of Saudi Arabia may be particularly affected by changes in the","page_number":145,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"360a251d-e481-4369-acb8-be66ef5288a1","block_type":"box","text":"U.S. economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs,","page_number":145,"box":{"x":117,"y":413,"width":738,"height":12}},{"id":"b3ba7579-e525-4e6a-b09f-a4920f2c02b2","block_type":"box","text":"changes in the U.S. dollar exchange rate or an economic slowdown in the U.S. may have a material","page_number":145,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"eef48566-ba54-4f38-9b72-a94f2c55459e","block_type":"box","text":"adverse effect on the economic conditions of Saudi Arabia and, as a result, securities to which the","page_number":145,"box":{"x":116,"y":444,"width":733,"height":11}},{"id":"c6510dff-5ac6-46e1-b02f-d707eec10971","block_type":"box","text":"Fund has exposure. Political instability in North Africa and the larger Middle East region has caused","page_number":145,"box":{"x":117,"y":459,"width":743,"height":12}},{"id":"66e3d6a5-0ca9-47e6-8108-af89afe7926a","block_type":"box","text":"significant disruptions to many industries. Continued political and social unrest in these areas may","page_number":145,"box":{"x":116,"y":475,"width":732,"height":12}},{"id":"2278fb44-b0b1-4103-8d6d-54144f38423e","block_type":"box","text":"negatively affect the value of securities in a Fund’s portfolio.","page_number":145,"box":{"x":117,"y":490,"width":449,"height":12}},{"id":"a38289c1-e534-4304-a947-c7ef61fa2408","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to","page_number":145,"box":{"x":117,"y":521,"width":731,"height":12}},{"id":"862bacea-4058-4c50-be07-77d04d43677e","block_type":"box","text":"sanctions and/or embargoes imposed by the U.S. Government and the United Nations and/or countries","page_number":145,"box":{"x":116,"y":537,"width":772,"height":12}},{"id":"508eda70-ceb4-4dad-bdff-e0c5630b304c","block_type":"box","text":"identified by the U.S. Government as state sponsors of terrorism. As a result, an issuer may sustain","page_number":145,"box":{"x":117,"y":552,"width":744,"height":12}},{"id":"bb26a958-2d84-4130-a144-d18ccf10b91e","block_type":"box","text":"damage to its reputation if it is identified as an issuer which operates in, or has dealings with, such","page_number":145,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"0ff8abdf-7417-4a77-8f2c-9acb5206e6d8","block_type":"box","text":"countries. A Fund, as an investor in such issuers will be indirectly subject to those risks.","page_number":145,"box":{"x":116,"y":583,"width":655,"height":12}},{"id":"185d87b1-fb1e-4bc0-87de-92da53330fa3","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":145,"box":{"x":116,"y":614,"width":237,"height":12}},{"id":"3a377c8c-0423-41b1-8c5b-7cd3d5695c3f","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory,","page_number":145,"box":{"x":354,"y":614,"width":493,"height":12}},{"id":"4209e9cc-d086-4ac6-acfc-d4cad246a6ed","block_type":"box","text":"political, currency, security, expropriation and/or nationalization of assets and economic risk specific to","page_number":145,"box":{"x":117,"y":630,"width":764,"height":12}},{"id":"70a502cc-041d-4a92-ba92-51185eb9598b","block_type":"box","text":"Venezuela. Venezuela is extremely well endowed with natural resources, including oil and natural gas,","page_number":145,"box":{"x":116,"y":645,"width":765,"height":12}},{"id":"522a2f16-e516-4708-b724-a50f391d3900","block_type":"box","text":"and its economy is heavily dependent on export of natural resources to key trading partners. Any act of","page_number":145,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"dc0ca6ab-5054-4984-bc24-2501e382ee1c","block_type":"box","text":"terrorism, an armed conflict or a breakdown of a key trading relationship that disrupts the production or","page_number":145,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"f21e2251-56cd-4d21-b7d3-445783ba7c65","block_type":"box","text":"export of natural resources will likely negatively affect the Venezuelan economy. The government","page_number":145,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"b924925c-a7e1-4878-89fb-5381a7c69dc8","block_type":"box","text":"continues to control key sectors of the economy, including upstream oil and gas production, and has","page_number":145,"box":{"x":116,"y":707,"width":744,"height":12}},{"id":"cb9154c2-5d66-4592-a12c-f5d224d38bec","block_type":"box","text":"sought to increase its role in key sectors, such as telecommunications and steel. Meanwhile,","page_number":145,"box":{"x":116,"y":723,"width":686,"height":12}},{"id":"ee22a014-6a9c-4cee-9779-11f35aaa0a3f","block_type":"box","text":"ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":145,"box":{"x":116,"y":738,"width":747,"height":12}},{"id":"73f3ab10-e900-4728-98ef-6ba8b1965f91","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues","page_number":145,"box":{"x":116,"y":754,"width":741,"height":12}},{"id":"28746fae-7bd9-417e-be17-db08eb30e5fa","block_type":"box","text":"between the governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions,","page_number":145,"box":{"x":117,"y":769,"width":725,"height":12}},{"id":"7d8e121d-763d-40f8-9e2d-d5fa7797835c","block_type":"box","text":"which consist of asset freezes and sectoral sanctions, on certain Venezuelan individuals and","page_number":145,"box":{"x":116,"y":785,"width":687,"height":11}},{"id":"7dd05ecb-65ad-4fdb-a8f7-7f0743e5a9bc","block_type":"box","text":"Venezuelan corporate entities, and on the Venezuelan government. The U.S. could also institute","page_number":145,"box":{"x":116,"y":800,"width":717,"height":12}},{"id":"c18b998a-7c9f-4fbf-a9dd-ee4a596db4e0","block_type":"box","text":"broader sanctions on Venezuela. The U.S. has also taken military action against Venezuela in an effort","page_number":145,"box":{"x":117,"y":816,"width":764,"height":12}},{"id":"ed2f539b-4b2e-467d-8b10-f31ddd87a7ff","block_type":"box","text":"to effect regime change. Military action, sanctions, or even the threat of further military action and","page_number":145,"box":{"x":116,"y":831,"width":727,"height":12}},{"id":"0170bea8-ec05-4209-9e6e-2958b292f98f","block_type":"box","text":"sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a weakening of","page_number":145,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"33835816-f88b-46e9-84f0-a4edbc412bea","block_type":"box","text":"the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":145,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"339a64ce-aced-441c-838a-5295143bedde","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions","page_number":145,"box":{"x":116,"y":878,"width":732,"height":12}},{"id":"3252e98a-aa3c-4850-bc9c-6fd0da9446ec","block_type":"box","text":"II-51","page_number":145,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"5d2a924f-f159-4186-9681-283f984bf31e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":145,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"787e7327-6aae-439f-9d15-a0b04886d115","block_type":"box","text":"against Venezuela may in the future be imposed by the U.S. or other countries. These factors, among","page_number":146,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"f4434463-e9ea-4578-a6b6-68f24efc0a90","block_type":"box","text":"others, can have a negative impact on a Fund’s investments.","page_number":146,"box":{"x":116,"y":103,"width":457,"height":12}},{"id":"7bc96edd-b524-451b-adc7-5bb76bce25eb","block_type":"box","text":"Brady Bonds.","page_number":146,"box":{"x":116,"y":135,"width":97,"height":12}},{"id":"32adc176-b509-4187-8df0-d2b3b56a55eb","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may","page_number":146,"box":{"x":215,"y":135,"width":661,"height":12}},{"id":"55c63905-3559-4068-8ce3-620abaf9e523","block_type":"box","text":"include emerging market governmental debt obligati","page_number":146,"box":{"x":117,"y":151,"width":376,"height":11}},{"id":"69cc5c7c-95dd-45bc-97c7-8971b4c7f66e","block_type":"box","text":"ons commonly referred to as Brady Bonds. Brady","page_number":146,"box":{"x":494,"y":150,"width":364,"height":12}},{"id":"0722fe3c-8b73-4684-8429-21bee6c8bc9f","block_type":"box","text":"Bonds are securities created through the exchange of existing commercial bank loans to sovereign","page_number":146,"box":{"x":117,"y":166,"width":722,"height":12}},{"id":"969f0fe7-19d2-4449-bdb7-c84e9ff0ec2e","block_type":"box","text":"entities for new obligations in connection with debt","page_number":146,"box":{"x":116,"y":181,"width":365,"height":12}},{"id":"aa26c517-3631-498f-81ff-aea2672f2555","block_type":"box","text":"t restructurings under a debt restructuring plan","page_number":146,"box":{"x":481,"y":182,"width":338,"height":11}},{"id":"6e12b4c6-bfcc-4b06-856f-d1099d408576","block_type":"box","text":"introduced by former U.S. Secretary of the Treasury,","page_number":146,"box":{"x":117,"y":197,"width":380,"height":12}},{"id":"d51fea78-252a-4319-b8ad-7261cd81fd28","block_type":"box","text":"Nicholas F. Brady (the “Brady Plan”). Brady Plan","page_number":146,"box":{"x":498,"y":197,"width":364,"height":12}},{"id":"f89adb39-20db-4008-b5ea-d00542eecc75","block_type":"box","text":"debt restructurings have been implemented in a number of","page_number":146,"box":{"x":116,"y":212,"width":427,"height":12}},{"id":"73a96048-0864-4589-bc9c-8ba2313b6ab6","block_type":"box","text":"f countries, including: Argentina, Bolivia, Brazil,","page_number":146,"box":{"x":542,"y":213,"width":342,"height":11}},{"id":"621a1ad4-e253-4f0b-9716-87ef7dbe9551","block_type":"box","text":"Bulgaria, Costa Rica, the Dominican Republic, Ecuado","page_number":146,"box":{"x":117,"y":228,"width":396,"height":12}},{"id":"7317b958-0d3d-4cb8-996b-ac0482f5fab4","block_type":"box","text":"r, Jordan, Mexico, Niger, Nigeria, Panama, Peru,","page_number":146,"box":{"x":515,"y":228,"width":359,"height":12}},{"id":"fc1deafb-be34-462b-892c-75c0a5234553","block_type":"box","text":"the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early 2000s, certain","page_number":146,"box":{"x":116,"y":244,"width":707,"height":11}},{"id":"0f487fb1-043b-40b2-b65f-11246b6c2d19","block_type":"box","text":"countries began retiring their Brady Bonds, includi","page_number":146,"box":{"x":116,"y":259,"width":361,"height":12}},{"id":"28635477-eaa5-4b96-a639-1b6b1d389a4b","block_type":"box","text":"ng Brazil, Colombia, Mexico, the Philippines, and","page_number":146,"box":{"x":480,"y":259,"width":360,"height":12}},{"id":"481ecbf8-20c8-42c7-903f-632ca9d2dd7f","block_type":"box","text":"Venezuela.","page_number":146,"box":{"x":116,"y":275,"width":87,"height":9}},{"id":"79436ee0-f2f1-4f4c-8800-c51a8e963fb4","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the","page_number":146,"box":{"x":117,"y":307,"width":758,"height":12}},{"id":"cfceaafc-15ec-40a3-ae1d-1b627a5f3117","block_type":"box","text":"U.S. dollar) and are actively traded in the OTC secondary market. Brady Bonds are not considered to","page_number":146,"box":{"x":117,"y":322,"width":762,"height":12}},{"id":"bfc26446-a1b4-4c50-a22b-c0ea237d177d","block_type":"box","text":"be U.S. Government Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be","page_number":146,"box":{"x":117,"y":338,"width":754,"height":12}},{"id":"7287cc5d-fa3e-4298-827b-9fe58afa3f8a","block_type":"box","text":"fixed rate par bonds or floating rate discount bonds, are generally collateralized in full as to principal","page_number":146,"box":{"x":116,"y":353,"width":751,"height":12}},{"id":"729e0c40-8896-4276-b452-44ea718c3db6","block_type":"box","text":"by U.S. Treasury zero-coupon bonds having the same maturity as the Brady Bonds. Interest","page_number":146,"box":{"x":117,"y":369,"width":694,"height":12}},{"id":"d418732e-3cc6-47ba-858e-0c2f76d1bf0b","block_type":"box","text":"payments on these Brady Bonds generally are collateralized on a one-year or longer rolling-forward","page_number":146,"box":{"x":117,"y":384,"width":749,"height":12}},{"id":"c7d2d0ee-5a91-4f02-bdd5-c4f260d74ea9","block_type":"box","text":"basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal to at least one","page_number":146,"box":{"x":117,"y":400,"width":753,"height":12}},{"id":"60e6f6a0-fc62-4eb2-bacd-f1a23b4028c8","block_type":"box","text":"year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":146,"box":{"x":116,"y":415,"width":754,"height":12}},{"id":"974b918e-cc41-4e1c-a6a7-50a173771aa3","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals","page_number":146,"box":{"x":117,"y":431,"width":767,"height":12}},{"id":"6976efd4-22b1-45ca-9c20-d7bd3907a820","block_type":"box","text":"thereafter. Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances,","page_number":146,"box":{"x":116,"y":446,"width":747,"height":12}},{"id":"ca7102b8-2339-4969-a45a-4844a9a9c195","block_type":"box","text":"which in effect constitute supplemental interest payments but generally are not collateralized. Brady","page_number":146,"box":{"x":116,"y":462,"width":751,"height":12}},{"id":"0a2bfa42-5511-4bef-ac7a-2c1d97bedc88","block_type":"box","text":"Bonds are often viewed as having three or four valuation components: (i) the collateralized repayment","page_number":146,"box":{"x":117,"y":477,"width":767,"height":12}},{"id":"7d2207ff-87b9-4d95-ba56-7b8a70aff161","block_type":"box","text":"of principal at final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest","page_number":146,"box":{"x":116,"y":493,"width":749,"height":12}},{"id":"69abdb57-ca27-43d7-a2df-ef5fd7919d7b","block_type":"box","text":"payments; and (iv) any uncollateralized repayment of principal at maturity (the uncollateralized","page_number":146,"box":{"x":117,"y":508,"width":710,"height":12}},{"id":"7930e346-f21a-4352-94dc-a46e443ba7cb","block_type":"box","text":"amounts constitute the “residual risk”).","page_number":146,"box":{"x":116,"y":524,"width":292,"height":12}},{"id":"41749061-c7c3-4e83-84ed-e66487011032","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign","page_number":146,"box":{"x":117,"y":556,"width":695,"height":12}},{"id":"6bb53871-5792-4b40-9389-9be791df94b2","block_type":"box","text":"securities, including the history of defaults with respect to commercial bank loans by public and private","page_number":146,"box":{"x":116,"y":572,"width":765,"height":12}},{"id":"2689f109-b766-4e3c-88e7-ea0d5fae2669","block_type":"box","text":"entities of countries issuing Brady Bonds. In light of the residual risk of Brady Bonds and, among other","page_number":146,"box":{"x":116,"y":587,"width":764,"height":12}},{"id":"9a4ecb56-042e-4ce8-90fa-a603bf75a9e8","block_type":"box","text":"factors, the history of defaults, investments in Brady Bonds are considered speculative. There can be","page_number":146,"box":{"x":116,"y":603,"width":756,"height":12}},{"id":"f0d00af3-83f1-4132-9f01-8bf2b080fc38","block_type":"box","text":"no assurance that Brady Bonds in which the Funds may invest will not be subject to restructuring","page_number":146,"box":{"x":117,"y":618,"width":723,"height":12}},{"id":"787338f2-f1be-4884-b3ad-23e324bd366d","block_type":"box","text":"arrangements or to requests for new credit, which may cause the Funds to suffer a loss of interest or","page_number":146,"box":{"x":116,"y":634,"width":752,"height":12}},{"id":"b730c977-336d-4b89-a097-e66fa57da999","block_type":"box","text":"principal on any of its holdings.","page_number":146,"box":{"x":117,"y":649,"width":234,"height":12}},{"id":"4460d933-0504-4e1e-ae36-5a4620c067eb","block_type":"box","text":"China Investments Risk.","page_number":146,"box":{"x":117,"y":682,"width":178,"height":9}},{"id":"cdff767e-2b03-48b5-818f-5ccea2729325","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the","page_number":146,"box":{"x":117,"y":705,"width":729,"height":13}},{"id":"cada3f04-e011-4aff-b286-1756dbeac757","block_type":"box","text":"“PRC”), including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and","page_number":146,"box":{"x":116,"y":721,"width":758,"height":12}},{"id":"06044f0a-d74a-44fe-bba9-fff3a66e783e","block_type":"box","text":"special considerations not typically associated with investing in the U.S. securities markets. Such","page_number":146,"box":{"x":116,"y":736,"width":719,"height":13}},{"id":"4a8d1eb4-37d4-4110-a35b-9118e0337ff1","block_type":"box","text":"heightened risks include, among others, an authoritarian government, popular unrest associated with","page_number":146,"box":{"x":117,"y":752,"width":747,"height":12}},{"id":"1ef1a245-c324-4097-98a6-18c58f9e61a6","block_type":"box","text":"demands for improved political, economic and social conditions, the impact of regional conflict on the","page_number":146,"box":{"x":116,"y":767,"width":748,"height":13}},{"id":"21190c7d-3dd1-402c-b76f-246db807e3ca","block_type":"box","text":"economy and hostile relations with other countries.","page_number":146,"box":{"x":116,"y":783,"width":376,"height":12}},{"id":"80c82354-94d2-406d-8845-5362c367b079","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could","page_number":146,"box":{"x":117,"y":815,"width":723,"height":12}},{"id":"0d9db028-67f5-4f41-a4f1-e09004b1fe90","block_type":"box","text":"disrupt economic development. The Chinese economy is vulnerable to the long-running disagreements","page_number":146,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"f2d2cb45-0aef-4dde-bbb9-ae80325d84df","block_type":"box","text":"and religious and nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been","page_number":146,"box":{"x":116,"y":846,"width":758,"height":12}},{"id":"cec1fb70-3177-4cb8-aaf7-d1e825b88f3b","block_type":"box","text":"tensions between the Chinese government and many people in Hong Kong who perceive China as","page_number":146,"box":{"x":116,"y":862,"width":738,"height":12}},{"id":"83926cb5-3d36-4ed0-80b7-9ce483ee28f3","block_type":"box","text":"tightening control over Hong Kong’s semi-autonomous liberal political, economic, legal, and social","page_number":146,"box":{"x":116,"y":878,"width":731,"height":11}},{"id":"be2c76e8-ef8f-40f8-a65f-53e4cbc494bd","block_type":"box","text":"II-52","page_number":146,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"0603d061-dd10-43b9-8fa3-350178b6057f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":146,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"95c0177f-9f9f-4b5c-94da-5e284945e535","block_type":"box","text":"framework. Protests and unrest have increased tensions even further. Due to the interconnected","page_number":147,"box":{"x":116,"y":87,"width":721,"height":10}},{"id":"482795c0-e1ba-48b7-a5b3-ae6bd21672e0","block_type":"box","text":"nature of the Hong Kong and Chinese economies, this instability in Hong Kong may cause uncertainty","page_number":147,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"adb7b6f9-d18f-4bb7-b3c6-8dd2a9b334cf","block_type":"box","text":"in the Hong Kong and Chinese markets. China has a complex territorial dispute regarding the","page_number":147,"box":{"x":117,"y":118,"width":697,"height":12}},{"id":"b8d880b3-7894-4d9d-84a4-c20b079b400f","block_type":"box","text":"sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":147,"box":{"x":116,"y":134,"width":767,"height":12}},{"id":"fbfcfa85-078c-4a1c-bdc2-9a931bb93847","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse","page_number":147,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"22d55459-4a4b-4be4-9628-bdacb1a5bb6a","block_type":"box","text":"impact on the value of the Fund’s investments in China or Taiwan, may cause a suspension in a","page_number":147,"box":{"x":117,"y":165,"width":717,"height":12}},{"id":"926965cb-68aa-476d-9488-dbbe7978b8b7","block_type":"box","text":"Fund’s ability to trade in certain securities or other assets or may otherwise make such investments","page_number":147,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"be383848-48a7-433a-8d7f-3bc25efb6da4","block_type":"box","text":"impracticable or impossible. Any escalation of hostility between China and Taiwan would likely have a","page_number":147,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"15a7d5a5-484d-4a6a-ad9d-bd182dce14e8","block_type":"box","text":"significant adverse impact on the value of the Fund’s investments in both countries and the region. In","page_number":147,"box":{"x":116,"y":211,"width":755,"height":12}},{"id":"4e1a0b74-1048-4917-9a1a-88c4314f64e2","block_type":"box","text":"addition, China has strained international relations with Japan, India, the Philippines and other","page_number":147,"box":{"x":116,"y":227,"width":703,"height":11}},{"id":"c4175c56-15f6-411d-934c-cefa9ab52e79","block_type":"box","text":"neighbors due to territorial disputes, historical animosities and other defense concerns. Frictions","page_number":147,"box":{"x":117,"y":242,"width":717,"height":12}},{"id":"c862cc37-20ce-4b83-9afd-ef039b855385","block_type":"box","text":"between China and the Philippines in the South China Sea pose a risk of escalation potentially leading","page_number":147,"box":{"x":117,"y":258,"width":765,"height":12}},{"id":"2a8edf4e-bbdd-48e1-8f52-db2edad9f254","block_type":"box","text":"to military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks","page_number":147,"box":{"x":116,"y":273,"width":752,"height":12}},{"id":"a5c03490-4ec3-413f-86a4-599070f6c509","block_type":"box","text":"against foreign companies and foreign governments. Actual and threatened responses to such activity","page_number":147,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"a0996d88-5130-44f4-9db6-fce9ed2d9adc","block_type":"box","text":"and strained international relations, including purchasing restrictions, sanctions, tariffs or cyberattacks","page_number":147,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"92b705f7-a024-423d-a749-13bf606f80fe","block_type":"box","text":"on the Chinese government or Chinese companies, may impact China’s economy and Chinese issuers","page_number":147,"box":{"x":116,"y":320,"width":769,"height":12}},{"id":"3a171cdd-9439-4093-bfbf-5874864c99ad","block_type":"box","text":"of securities in which a Fund invests. China could be affected by military events on the Korean","page_number":147,"box":{"x":116,"y":335,"width":705,"height":12}},{"id":"fdd7d588-a5de-4713-a22d-ab53c6c39f17","block_type":"box","text":"peninsula or internal instability within North Korea. These situations may cause uncertainty in the","page_number":147,"box":{"x":117,"y":351,"width":723,"height":12}},{"id":"2dd0f5ee-10a9-4a55-89b8-d9e17fc6ccc4","block_type":"box","text":"Chinese market and may adversely affect the performance of the Chinese economy.","page_number":147,"box":{"x":117,"y":366,"width":631,"height":12}},{"id":"b1d668ad-254b-4cc4-bd83-deb0a29e6ca7","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy,","page_number":147,"box":{"x":116,"y":393,"width":712,"height":12}},{"id":"d1f13a16-f158-41e8-9485-3abcca1fd9a9","block_type":"box","text":"promote foreign investment in the economy, reduce government control of the economy and develop","page_number":147,"box":{"x":117,"y":409,"width":752,"height":12}},{"id":"c5fe0c63-f659-4f21-9b64-bf5df1c2fa3b","block_type":"box","text":"market mechanisms. However, the Chinese government still exercises substantial influence over many","page_number":147,"box":{"x":117,"y":424,"width":768,"height":12}},{"id":"f16a08d0-f9f2-4b89-9a47-a13bdf8561da","block_type":"box","text":"aspects of the private sector and may own or control many companies. Chinese companies, such as","page_number":147,"box":{"x":116,"y":440,"width":751,"height":12}},{"id":"763e9cb3-e511-4414-b81e-2a92fb4db163","block_type":"box","text":"those in the financial services or technology sectors, and potentially other sectors in the future, are","page_number":147,"box":{"x":116,"y":455,"width":736,"height":12}},{"id":"1569ef9f-17a6-4129-9fd5-8ce8074304c1","block_type":"box","text":"subject to the risk that Chinese authorities can intervene in their operations and structure. The Chinese","page_number":147,"box":{"x":116,"y":471,"width":769,"height":12}},{"id":"5b1a065c-c271-41ab-897f-5aa923b32aa9","block_type":"box","text":"government continues to maintain a major role in economic policymaking and investing in China","page_number":147,"box":{"x":116,"y":486,"width":717,"height":12}},{"id":"43926a23-125e-433e-8854-58729a95978b","block_type":"box","text":"involves risk of loss due to expropriation, nationalization, confiscation of assets and property or the","page_number":147,"box":{"x":117,"y":502,"width":736,"height":12}},{"id":"a06210ec-71ee-435f-a6be-a950b308a6fd","block_type":"box","text":"imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":147,"box":{"x":117,"y":517,"width":647,"height":12}},{"id":"050453e0-bea7-420e-b7b9-2e466d86ddc4","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of","page_number":147,"box":{"x":116,"y":544,"width":764,"height":12}},{"id":"b96d1fa8-9660-449e-9bd0-269d30d58307","block_type":"box","text":"trading restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks.","page_number":147,"box":{"x":116,"y":560,"width":761,"height":12}},{"id":"42f21ded-fd3c-499f-a62d-7c385a30b5de","block_type":"box","text":"This may affect market price and liquidity of these stocks, and may have an unpredictable impact on","page_number":147,"box":{"x":116,"y":575,"width":748,"height":12}},{"id":"3ab81885-3f7b-4a1f-b18f-b1b3e27ac153","block_type":"box","text":"the investment activities of the Funds. Furthermore, such market interventions may have a negative","page_number":147,"box":{"x":116,"y":591,"width":745,"height":12}},{"id":"2d830b4c-4743-4fc1-b802-4f002892d658","block_type":"box","text":"impact on market sentiment which may in turn affect the performance of the securities markets and as","page_number":147,"box":{"x":117,"y":606,"width":762,"height":12}},{"id":"a58d63c5-440b-4cf4-ad93-d03253b5b35c","block_type":"box","text":"a result the performance of the Funds.","page_number":147,"box":{"x":116,"y":622,"width":290,"height":12}},{"id":"e32c4ee4-5f1d-406f-a46d-9b0c2a03d11e","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of","page_number":147,"box":{"x":117,"y":649,"width":749,"height":12}},{"id":"96f21aff-4e24-423c-a736-6e84e16ec644","block_type":"box","text":"investors, brokers and other participants than in the United States. Accordingly, issuers of securities in","page_number":147,"box":{"x":117,"y":665,"width":757,"height":12}},{"id":"b7607015-d012-4b45-9cfd-7892607339dc","block_type":"box","text":"China, including Chinese companies that are listed on U.S. exchanges, are not subject to the same","page_number":147,"box":{"x":117,"y":680,"width":735,"height":12}},{"id":"d5142651-210d-4e41-9e33-d23bc0b7a14a","block_type":"box","text":"degree of regulation as are U.S. issuers with respect to such matters as insider trading rules, tender","page_number":147,"box":{"x":116,"y":696,"width":742,"height":12}},{"id":"f8fed366-0df1-4a61-a764-72009d061394","block_type":"box","text":"offer regulation, accounting standards or auditor oversight, stockholder proxy requirements and the","page_number":147,"box":{"x":116,"y":711,"width":735,"height":12}},{"id":"81b54d9d-ebe4-4115-823e-3e2e6becae4c","block_type":"box","text":"requirements mandating timely and accurate disclosure of information. Securities markets in China are","page_number":147,"box":{"x":117,"y":727,"width":761,"height":12}},{"id":"ec0d6a1b-d930-4dd1-836d-dbcd150631ab","block_type":"box","text":"in the process of change and further development. This may lead to trading volatility, difficulty in the","page_number":147,"box":{"x":117,"y":742,"width":738,"height":12}},{"id":"5a1e5906-3e01-4c1f-bdd6-4abd54744179","block_type":"box","text":"settlement and recording of transactions and difficulty in interpreting and applying the relevant","page_number":147,"box":{"x":116,"y":758,"width":697,"height":12}},{"id":"962fe328-8960-441f-8c98-11b5addb4e3f","block_type":"box","text":"regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":147,"box":{"x":117,"y":773,"width":750,"height":12}},{"id":"f9cd576c-f598-4f32-9cca-5a2a43e91d41","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In","page_number":147,"box":{"x":116,"y":789,"width":743,"height":12}},{"id":"c33f27ff-ee9b-4672-a9f0-ac1a1c91220b","block_type":"box","text":"particular, there is a risk that a Fund may not be recognized as the owner of securities that are held on","page_number":147,"box":{"x":117,"y":804,"width":759,"height":12}},{"id":"d3f18490-c6dc-4aa6-82c3-4337c4770e8e","block_type":"box","text":"behalf of the Fund by a sub-custodian.","page_number":147,"box":{"x":117,"y":820,"width":284,"height":12}},{"id":"2edddecc-981e-4d7d-a94a-09fcfe77ad6d","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or","page_number":147,"box":{"x":116,"y":847,"width":707,"height":12}},{"id":"90aac05a-f1bf-4967-a711-b298cd3e7bd7","block_type":"box","text":"litigation against Chinese companies, and shareholders may have limited legal remedies. The Funds","page_number":147,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"f68320ac-2884-4f12-b106-1b6bb915dea5","block_type":"box","text":"do not select investments based on investor protection considerations.","page_number":147,"box":{"x":116,"y":878,"width":528,"height":12}},{"id":"0729a120-5e17-4616-b160-03a377b34932","block_type":"box","text":"II-53","page_number":147,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a8758cf4-53e3-4bc3-9107-c72bcf47e34a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":147,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"485a9d63-8089-4afb-9321-c6f42b17cf94","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company","page_number":148,"box":{"x":116,"y":87,"width":689,"height":12}},{"id":"b6c9c917-ed5f-44a1-ba52-7d35093e7e25","block_type":"box","text":"Accounting Oversight Board (“PCAOB”) from inspecting the audit work and practices of accounting","page_number":148,"box":{"x":116,"y":102,"width":738,"height":13}},{"id":"77815868-7360-414f-9b50-0a25f43ef38c","block_type":"box","text":"firms in mainland China and Hong Kong for compliance with U.S. law and professional standards. On","page_number":148,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"c3de65ec-7b81-481c-afae-d0d908d3496b","block_type":"box","text":"August 26, 2022, the PCAOB signed a Statement of Protocol with the China Securities Regulatory","page_number":148,"box":{"x":116,"y":134,"width":734,"height":12}},{"id":"3d774473-4468-4094-b923-29796334af29","block_type":"box","text":"Commission and the Ministry of Finance of the PRC, which marked the first step toward opening","page_number":148,"box":{"x":117,"y":149,"width":719,"height":12}},{"id":"f82d734a-6c4a-41a8-a67e-d3639f2431ba","block_type":"box","text":"access for the PCAOB to inspect and investigate registered public accounting firms headquartered in","page_number":148,"box":{"x":116,"y":165,"width":755,"height":12}},{"id":"9224ed01-e676-4c26-8b2f-a1338e3d2798","block_type":"box","text":"mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":148,"box":{"x":117,"y":180,"width":672,"height":12}},{"id":"fb5ec185-4bf4-477a-a18b-e180ebbda2bb","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested.","page_number":148,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"f44ca6d8-c8ca-4b9d-babc-78ce82a1e0ab","block_type":"box","text":"Audits performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be","page_number":148,"box":{"x":116,"y":211,"width":747,"height":12}},{"id":"0a3ffd67-7751-4adf-9793-6aae1b7cae3f","block_type":"box","text":"less reliable than those performed by firms subject to PCAOB inspection. Accordingly, information","page_number":148,"box":{"x":117,"y":227,"width":730,"height":12}},{"id":"266f03bf-3502-4ef6-be04-605f691d2f3d","block_type":"box","text":"about the Chinese securities in which the Funds invest may be less reliable or complete. Under","page_number":148,"box":{"x":116,"y":242,"width":712,"height":12}},{"id":"f1e5fff3-cf94-4404-a0b8-18df67b1476b","block_type":"box","text":"amendments to the Sarbanes-Oxley Act enacted in December 2020, which requires that the PCAOB","page_number":148,"box":{"x":116,"y":258,"width":752,"height":12}},{"id":"e6d6d42f-c8af-49aa-9e32-d1ce9d73f04a","block_type":"box","text":"be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer, Chinese companies with","page_number":148,"box":{"x":117,"y":273,"width":743,"height":12}},{"id":"405a1a22-cf9c-4271-b4c6-0cfceb4b90cc","block_type":"box","text":"securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the accounting","page_number":148,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"158d7eca-938a-4304-ac5f-74785b1afc5e","block_type":"box","text":"firm.","page_number":148,"box":{"x":116,"y":304,"width":37,"height":9}},{"id":"ba381143-6893-491e-98a4-a28d6d26c115","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange","page_number":148,"box":{"x":116,"y":335,"width":763,"height":12}},{"id":"7af5b5f4-dad6-4999-8937-7fa3f1f51514","block_type":"box","text":"control policies and repatriation restrictions imposed by the Chinese government. The imposition of","page_number":148,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"f0dfaf6a-50d4-4976-83b4-462541250767","block_type":"box","text":"currency controls may negatively impact performance and liquidity of the Funds as capital may become","page_number":148,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"eb281132-3918-4022-9550-c23c196adcf1","block_type":"box","text":"trapped in the PRC. The Funds could be adversely affected by delays in, or a refusal to grant, any","page_number":148,"box":{"x":116,"y":382,"width":732,"height":12}},{"id":"d783cae6-82af-4df5-b094-7d2bba65cb0d","block_type":"box","text":"required governmental approval for repatriation of capital, as well as by the application to the Funds of","page_number":148,"box":{"x":117,"y":397,"width":762,"height":12}},{"id":"5fd4507d-b308-4419-8156-b0ac2fbad5cf","block_type":"box","text":"any restrictions on investments. 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Certain companies may be subject to economic","page_number":149,"box":{"x":116,"y":442,"width":762,"height":12}},{"id":"fad70363-bf3e-4d2d-afe2-fd8d0fa54fa8","block_type":"box","text":"or trade restrictions (but not investment restrictions) imposed by the U.S. or other governments due to","page_number":149,"box":{"x":116,"y":457,"width":761,"height":12}},{"id":"961bd828-e8bf-4ab7-91d1-2c8764593fb5","block_type":"box","text":"national security, human rights or other concerns of such government. So long as these restrictions do","page_number":149,"box":{"x":117,"y":473,"width":764,"height":12}},{"id":"d553f3b1-33a3-46bb-96fe-c14982732a03","block_type":"box","text":"not include restrictions on investments, the Fund may invest in such companies.","page_number":149,"box":{"x":117,"y":489,"width":599,"height":11}},{"id":"579469f5-1827-4d6e-b788-47445a435211","block_type":"box","text":"The tax laws and regulations in the PRC are subject t","page_number":149,"box":{"x":116,"y":518,"width":374,"height":12}},{"id":"598591d2-5cbe-4e38-baa7-eda1c2443e35","block_type":"box","text":"to change, including the issuance of authoritative","page_number":149,"box":{"x":490,"y":518,"width":352,"height":12}},{"id":"070d8025-fe5d-4e00-bfac-7d94adfbba2e","block_type":"box","text":"guidance or enforcement, possibly with retroactive e","page_number":149,"box":{"x":116,"y":533,"width":370,"height":12}},{"id":"fc9c9562-8684-4cdb-92e8-cd67fbd8b9fd","block_type":"box","text":"ffect. The interpretation, applicability and enforcement","page_number":149,"box":{"x":487,"y":533,"width":386,"height":12}},{"id":"d987872b-f529-4a33-87e1-8d34e3ff7921","block_type":"box","text":"of such laws by PRC tax authorities are not as c","page_number":149,"box":{"x":116,"y":549,"width":341,"height":12}},{"id":"5ef96c52-3cce-4dee-842d-74d2155c1145","block_type":"box","text":"onsistent and transparent as those of more developed","page_number":149,"box":{"x":458,"y":549,"width":389,"height":12}},{"id":"22455630-99b5-4d99-86da-fe43fcb32ae1","block_type":"box","text":"nations, and may vary over time and from region to","page_number":149,"box":{"x":117,"y":564,"width":362,"height":12}},{"id":"b7794db3-8df6-4a37-9aba-ba9b3022b9fa","block_type":"box","text":"region. The application and enforcement of PRC tax","page_number":149,"box":{"x":479,"y":564,"width":380,"height":12}},{"id":"accd609a-4764-43db-96dd-8e8e3e6033e6","block_type":"box","text":"rules could have a significant adverse effect on a Fund and","page_number":149,"box":{"x":117,"y":580,"width":423,"height":12}},{"id":"5fd31abe-4db1-4dd3-9d8c-b5c61ba4800b","block_type":"box","text":"its investors, particularly in relation to capital","page_number":149,"box":{"x":541,"y":580,"width":316,"height":12}},{"id":"45ad2515-3024-492f-afe1-e1620e73ffba","block_type":"box","text":"gains withholding tax imposed upon non-residents. In","page_number":149,"box":{"x":116,"y":595,"width":383,"height":12}},{"id":"363cdfac-681d-4438-838e-cd64f13a64f7","block_type":"box","text":"addition, the accounting, auditing and financial","page_number":149,"box":{"x":500,"y":595,"width":333,"height":12}},{"id":"06435934-1f74-44ab-a4a3-89c7059558a4","block_type":"box","text":"reporting standards and practices applicable to Chinese companies may be less rigorous, and may result in","page_number":149,"box":{"x":117,"y":611,"width":767,"height":12}},{"id":"f723a73d-3eb7-4e08-af81-d9ff5870a869","block_type":"box","text":"significant differences between financial stat","page_number":149,"box":{"x":116,"y":626,"width":313,"height":12}},{"id":"f2ae2873-fc56-4bd3-b00c-76aa7ad72178","block_type":"box","text":"ements prepared in accordance with PRC accounting","page_number":149,"box":{"x":429,"y":626,"width":385,"height":12}},{"id":"328995d5-e343-4855-a1f1-caadf0ebf0f1","block_type":"box","text":"standards and practice and those prepared in acco","page_number":149,"box":{"x":116,"y":642,"width":362,"height":12}},{"id":"6a87c5ff-804a-4908-be92-904e8fa2a83f","block_type":"box","text":"rdance with international accounting standards.","page_number":149,"box":{"x":479,"y":642,"width":340,"height":12}},{"id":"321d841b-e797-4ad3-84ab-18ec894c37ec","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the","page_number":149,"box":{"x":117,"y":671,"width":762,"height":12}},{"id":"0af75cc0-5a4e-43be-b96f-be5dce7853e7","block_type":"box","text":"country may be subject to other public health threats, infectious illnesses, diseases or similar issues in","page_number":149,"box":{"x":116,"y":686,"width":757,"height":13}},{"id":"90c20726-768d-41ef-aa4c-2af059d54907","block_type":"box","text":"the future. Any spread of an infectious illness, public health threat or similar issue could reduce","page_number":149,"box":{"x":116,"y":702,"width":704,"height":12}},{"id":"2622d491-a5fe-4b9f-bcc3-abc4173b8b96","block_type":"box","text":"consumer demand or economic output, result in market closures, travel restrictions or quarantines, and","page_number":149,"box":{"x":116,"y":718,"width":764,"height":11}},{"id":"a8babb7b-5b07-44ef-9cb0-ab23716f01a5","block_type":"box","text":"generally have a significant impact on the Chinese economy, which in turn could adversely affect a","page_number":149,"box":{"x":116,"y":733,"width":732,"height":12}},{"id":"85c6a134-39f6-4289-b122-f6a0e1ea7eaf","block_type":"box","text":"Fund’s investments.","page_number":149,"box":{"x":117,"y":749,"width":147,"height":9}},{"id":"6e3b2dc0-2cae-4e6c-8753-333449730b26","block_type":"box","text":"Risk of Investing through Stock Connect","page_number":149,"box":{"x":116,"y":778,"width":300,"height":12}},{"id":"e431b605-2e49-4583-ba59-2107cabfcbeb","block_type":"box","text":".","page_number":149,"box":{"x":417,"y":786,"width":1,"height":1}},{"id":"31914777-f92c-4135-8a65-057dc3a5e060","block_type":"box","text":"General.","page_number":149,"box":{"x":117,"y":800,"width":62,"height":10}},{"id":"c04bd690-6d4a-4c24-aedf-066806262ba4","block_type":"box","text":"China A-shares are equity securities of companies domiciled in China that trade on Chinese","page_number":149,"box":{"x":186,"y":800,"width":681,"height":12}},{"id":"5d547586-f606-4a6f-8fbd-a88860b555a8","block_type":"box","text":"stock exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange","page_number":149,"box":{"x":116,"y":816,"width":718,"height":12}},{"id":"64841293-7701-41a5-8bb1-9b369e3f5eeb","block_type":"box","text":"(“SZSE”) and the Beijing Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the","page_number":149,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"32fad3e1-2961-4139-8064-95e8371f0bdd","block_type":"box","text":"SSE and SZSE is not permitted, other than pursuant to available exceptions, such as through a","page_number":149,"box":{"x":116,"y":847,"width":713,"height":12}},{"id":"a2a0e745-291b-4ad7-b2cd-fd249466dbaa","block_type":"box","text":"qualified foreign investor approved pursuant to the relevant mainland China laws and regulations as","page_number":149,"box":{"x":116,"y":862,"width":745,"height":12}},{"id":"a6109ece-f52b-4ede-bd86-0705fd387df5","block_type":"box","text":"may be promulgated and/or amended from time to time (“QFI”).","page_number":149,"box":{"x":117,"y":878,"width":474,"height":12}},{"id":"3acc1e0e-c8ee-4b98-b89d-d8e6b86978bc","block_type":"box","text":"II-55","page_number":149,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7b8cadd8-a68c-4b87-8a70-aec989607443","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":149,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"eda4d704-3e9c-410b-a679-a03b6207ad64","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE","page_number":150,"box":{"x":117,"y":87,"width":728,"height":12}},{"id":"1c7f4074-ea56-404c-b2ec-3fdc4acd9227","block_type":"box","text":"(“Stock Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect","page_number":150,"box":{"x":117,"y":102,"width":711,"height":13}},{"id":"ea8ae292-f725-43b5-ad5c-c61c8df17931","block_type":"box","text":"program or the Shenzhen-Hong Kong Stock Connect program, as applicable (each, a “Stock Connect”","page_number":150,"box":{"x":117,"y":118,"width":764,"height":12}},{"id":"dd255158-f812-4eeb-8b0b-f97b85f6ea4f","block_type":"box","text":"and collectively, “Stock Connects”). Each Stock Connect is a securities trading and clearing links","page_number":150,"box":{"x":116,"y":134,"width":722,"height":12}},{"id":"441e28ca-15e8-459d-9151-f9f7a0b21a29","block_type":"box","text":"program established by The Stock Exchange of Hong Kong Limited (“SEHK”), the Hong Kong","page_number":150,"box":{"x":117,"y":149,"width":699,"height":12}},{"id":"a870ad48-0edf-4d80-b0f0-257a6a5489af","block_type":"box","text":"Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable, and China","page_number":150,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"7a171a0e-59a6-44d7-aeed-8439f793d4b3","block_type":"box","text":"Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":150,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"29e44d01-ae0b-46f9-b18a-fcb8730d4d8b","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on","page_number":150,"box":{"x":117,"y":196,"width":761,"height":12}},{"id":"d99f91ca-6367-4d42-9e38-c535bacdaa19","block_type":"box","text":"each market through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock","page_number":150,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"2f7caeb8-b6d2-4e3d-b373-cbacc4da4011","block_type":"box","text":"Connect Securities listed on the SSE or SZSE, as applicable, would be effectuated through its Hong","page_number":150,"box":{"x":117,"y":227,"width":747,"height":12}},{"id":"89b7ee7b-8941-4c2a-bfaf-d19c61b6cce1","block_type":"box","text":"Kong broker and a securities trading service company established by SEHK.","page_number":150,"box":{"x":117,"y":242,"width":572,"height":12}},{"id":"a212849f-4676-4108-8b19-6fecf3844e56","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock","page_number":150,"box":{"x":116,"y":273,"width":703,"height":12}},{"id":"03ceed9c-dc51-4348-958f-ca4f42c5a4b6","block_type":"box","text":"Connect, trading through a Stock Connect’s Northbound Trading Link is subject to daily investment","page_number":150,"box":{"x":117,"y":289,"width":738,"height":12}},{"id":"e2dea42d-7f1f-4f98-8930-8fd448333364","block_type":"box","text":"quota limitations which require that buy orders for Stock Connect Securities be rejected once the daily","page_number":150,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"525d05b4-a126-4f5b-b7a7-4d9495de0625","block_type":"box","text":"quota is exceeded (although a Fund will be permitted to sell their Stock Connect Securities regardless","page_number":150,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"330aedf1-dbcf-4aeb-88fc-0e9aa6d2eaa2","block_type":"box","text":"of the quota). These limitations may restrict a Fund from investing in Stock Connect Securities on a","page_number":150,"box":{"x":116,"y":335,"width":741,"height":12}},{"id":"a7d5d241-1cc1-420b-8db4-6f30e2a0703c","block_type":"box","text":"timely basis, which could affect the Fund’s ability to effectively pursue its investment strategy.","page_number":150,"box":{"x":116,"y":351,"width":698,"height":12}},{"id":"8d070a82-69a2-413f-9c0b-7747c8b6c7b8","block_type":"box","text":"Investment quotas are also subject to change. Investment in Stock Connect Securities through a Stock","page_number":150,"box":{"x":117,"y":366,"width":767,"height":12}},{"id":"70ac7dd7-7315-4d16-9de6-f4a09f7a079d","block_type":"box","text":"Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund.","page_number":150,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"7908f151-0f65-405b-961c-f0f9eba8de73","block_type":"box","text":"Stock Connect Securities purchased through Stock Connects generally may not be sold or otherwise","page_number":150,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"f55558a9-5178-40b7-807d-da8d190e416e","block_type":"box","text":"transferred other than through Stock Connects in accordance with applicable rules. For example, the","page_number":150,"box":{"x":116,"y":413,"width":752,"height":12}},{"id":"5eff5090-10f8-4f01-bc6b-4be08cf8a4cd","block_type":"box","text":"PRC regulations require that in order for an investor to sell any Stock Connect Securities on a certain","page_number":150,"box":{"x":117,"y":428,"width":755,"height":12}},{"id":"8118c0ff-965a-4082-97ed-71ad58d7c9a3","block_type":"box","text":"trading day, there must be sufficient Stock Connect Securities in the investor’s account before the","page_number":150,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"1bd6414f-2c69-451c-810e-e7e1dd934a1c","block_type":"box","text":"market opens on that day. If there are insufficient Stock Connect Securities in the investor’s account,","page_number":150,"box":{"x":117,"y":459,"width":751,"height":12}},{"id":"ac45f468-f907-4486-b02a-fc551b8ba27f","block_type":"box","text":"the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries out pre-trade checking","page_number":150,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"e239567e-77c7-4212-9693-45341bab486d","block_type":"box","text":"on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market (“SZSE","page_number":150,"box":{"x":116,"y":490,"width":746,"height":12}},{"id":"665b6af0-9bc3-4d23-b7bb-72d1ce64d33f","block_type":"box","text":"Securities”) of its participants (i.e., stock brokers) to ensure that this requirement is satisfied. While","page_number":150,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"e76c5e70-b30f-430e-97a8-daf40f8f86c1","block_type":"box","text":"shares must be designated as eligible to be traded under a Stock Connect, those shares may also lose","page_number":150,"box":{"x":116,"y":521,"width":770,"height":12}},{"id":"a3717398-1278-453f-8352-6426f48b6985","block_type":"box","text":"such designation, and if this occurs, such shares may be sold but cannot be purchased through a","page_number":150,"box":{"x":116,"y":537,"width":728,"height":12}},{"id":"f562c86a-1463-4c31-afc9-4cae78422988","block_type":"box","text":"Stock Connect. In addition, Stock Connects will only operate on days when both the Chinese and Hong","page_number":150,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"c4842828-18a6-4935-8fd2-14d506c0a122","block_type":"box","text":"Kong markets are open for trading, and banking services are available in both markets on the","page_number":150,"box":{"x":117,"y":568,"width":698,"height":12}},{"id":"90bef7f8-c602-4f53-9253-92856a29976e","block_type":"box","text":"corresponding settlement days. Therefore, an investment in Stock Connect Securities through a Stock","page_number":150,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"fdf934f0-30bd-4935-9853-247a54e50c26","block_type":"box","text":"Connect may subject a Fund to a risk of price fluctuations on days when the Chinese market is open,","page_number":150,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"9d6059d8-591d-40ee-a600-2bebdad23a8e","block_type":"box","text":"but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on the Stock","page_number":150,"box":{"x":117,"y":614,"width":745,"height":12}},{"id":"f9b4a043-0004-402e-a65d-8afac1211d88","block_type":"box","text":"Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will","page_number":150,"box":{"x":117,"y":630,"width":746,"height":12}},{"id":"e88e7fbb-e164-48f3-97ff-740a1721717f","block_type":"box","text":"only be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock","page_number":150,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"5dfaa6bf-e052-4079-8ae5-a85b44f5612c","block_type":"box","text":"Connect Securities must be settled in RMB, investors must have timely access to a reliable supply of","page_number":150,"box":{"x":117,"y":661,"width":748,"height":12}},{"id":"6605e44e-8912-4ba7-8110-9f463b0dd5a8","block_type":"box","text":"offshore RMB, which cannot be guaranteed. There is also no assurance that RMB will not be subject to","page_number":150,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"b56ac32f-a5ff-4eb7-a40e-1807ad97ab5e","block_type":"box","text":"devaluation. Any devaluation of RMB could adversely affect a Fund’s investments. If a Fund holds a","page_number":150,"box":{"x":116,"y":692,"width":741,"height":12}},{"id":"7ccd08bf-bbdd-47ab-af30-5c0d642cceab","block_type":"box","text":"class of shares denominated in a local currency other than RMB, the Fund will be exposed to currency","page_number":150,"box":{"x":116,"y":707,"width":760,"height":12}},{"id":"efca1a64-c83d-46fc-866e-b8fb2737959d","block_type":"box","text":"exchange risk if the Fund converts the local currency into RMB for investments in Stock Connect","page_number":150,"box":{"x":116,"y":723,"width":717,"height":12}},{"id":"cb1d16bb-0d00-441c-828f-fecf31541aa2","block_type":"box","text":"Securities. A Fund may also incur conversion costs.","page_number":150,"box":{"x":116,"y":738,"width":384,"height":12}},{"id":"8743f61b-6803-495b-af20-3f8930832f2d","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held","page_number":150,"box":{"x":116,"y":769,"width":716,"height":12}},{"id":"28ab2b59-71ec-489d-91f3-553424d12f68","block_type":"box","text":"through HKSCC as nominee on behalf of investors. The precise nature and rights of a Fund as the","page_number":150,"box":{"x":116,"y":785,"width":731,"height":12}},{"id":"987ef355-54a2-4b00-9136-05688249eff0","block_type":"box","text":"beneficial owner of the SSE Securities or SZSE Securities through HKSCC as nominee is not well","page_number":150,"box":{"x":117,"y":800,"width":725,"height":12}},{"id":"0177905a-5595-4be8-ad4f-42dccb4f452a","block_type":"box","text":"defined under the PRC laws. There is a lack of a clear definition of, and distinction between, legal","page_number":150,"box":{"x":116,"y":816,"width":722,"height":12}},{"id":"2f357e87-bb6c-4da6-92f9-b64061aaefdb","block_type":"box","text":"ownership and beneficial ownership under the PRC laws and there have been few cases involving a","page_number":150,"box":{"x":116,"y":831,"width":748,"height":12}},{"id":"941bf7ce-70b9-4e01-b253-4515a56f1615","block_type":"box","text":"nominee account structure in the PRC courts. The exact nature and methods of enforcement of the","page_number":150,"box":{"x":117,"y":847,"width":740,"height":9}},{"id":"9868ed02-0cc1-424a-9b34-4cd5463e8174","block_type":"box","text":"rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that HKSCC","page_number":150,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"bc5bc048-5880-41d5-8f0a-0c6eb816619d","block_type":"box","text":"becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or","page_number":150,"box":{"x":117,"y":878,"width":743,"height":12}},{"id":"2232adee-9a82-4674-ab6c-3e85657a7951","block_type":"box","text":"II-56","page_number":150,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"42ccd3a0-4876-4207-a02a-bf94955eb34d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":150,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1aa19952-e96c-42d3-afd2-bee76f65e217","block_type":"box","text":"SZSE Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the","page_number":151,"box":{"x":116,"y":87,"width":754,"height":12}},{"id":"0b19e5ca-209d-421f-9c67-45642b14f930","block_type":"box","text":"general assets of HKSCC available for general distribution to its creditors. Notwithstanding the fact that","page_number":151,"box":{"x":116,"y":102,"width":770,"height":13}},{"id":"ca33ae9b-3732-4241-a77a-95136008e9c8","block_type":"box","text":"HKSCC does not claim proprietary interests in the SSE Securities or SZSE Securities held in its","page_number":151,"box":{"x":117,"y":118,"width":714,"height":12}},{"id":"a9da44fc-fc15-4830-a001-6818e8dc43ca","block_type":"box","text":"omnibus stock account in the CSDCC, the CSDCC as the share registrar for SSE- or SZSE-listed","page_number":151,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"fcd635b1-bc3f-47de-b6b7-94fc87e5d9a2","block_type":"box","text":"companies will still treat HKSCC as one of the shareholders when it handles corporate actions in","page_number":151,"box":{"x":116,"y":149,"width":722,"height":12}},{"id":"b654fe11-f9df-439b-85ce-3adcaf9812b5","block_type":"box","text":"respect of such SSE Securities or SZSE Securities. HKSCC monitors the corporate actions affecting","page_number":151,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"55227e72-2a6c-4a5f-a04c-6623bcb112c3","block_type":"box","text":"SSE Securities and SZSE Securities and keeps participants of Central Clearing and Settlement","page_number":151,"box":{"x":116,"y":180,"width":712,"height":12}},{"id":"3469e7fc-f3dc-472d-bfd0-c9b1e2de339b","block_type":"box","text":"System (“CCASS”) informed of all such corporate actions that require CCASS participants to take","page_number":151,"box":{"x":116,"y":196,"width":729,"height":12}},{"id":"f4962853-195a-4263-97b2-7a3cb866b22c","block_type":"box","text":"steps in order to participate in them. Investors may only exercise their voting rights by providing their","page_number":151,"box":{"x":116,"y":211,"width":750,"height":12}},{"id":"d2393bba-fba2-4d45-979a-05cd4b4cdb38","block_type":"box","text":"voting instructions to HKSCC through participants of CCASS. All voting instructions from CCASS","page_number":151,"box":{"x":116,"y":227,"width":724,"height":12}},{"id":"f3690648-a941-427f-9974-044f4784ccd7","block_type":"box","text":"participants will be consolidated by HKSCC, who will then submit a combined single voting instruction","page_number":151,"box":{"x":117,"y":242,"width":757,"height":12}},{"id":"9cf30a93-4e45-4cbf-8775-a3906cb5af6c","block_type":"box","text":"to the relevant SSE- or SZSE-listed company. As a result, a Fund may suffer difficulties or delays in","page_number":151,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"57f46c2d-cd69-470e-8ad8-944a65d19cfa","block_type":"box","text":"enforcing its rights in SSE Securities or SZSE Securities.","page_number":151,"box":{"x":116,"y":273,"width":427,"height":12}},{"id":"b4433bdc-c69f-47fe-a217-2d317e88a747","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any","page_number":151,"box":{"x":117,"y":304,"width":728,"height":12}},{"id":"93241577-da26-46a4-a94f-20edbeb5eb07","block_type":"box","text":"nationality who suffer pecuniary losses as a result of default of a licensed intermediary or authorized","page_number":151,"box":{"x":117,"y":320,"width":747,"height":12}},{"id":"27e297df-96b6-4396-935f-6d3e9b46ab75","block_type":"box","text":"financial institution in relation to exchange-traded products in Hong Kong. For defaults occurring on or","page_number":151,"box":{"x":116,"y":335,"width":760,"height":12}},{"id":"db4c3450-2e6f-474c-8afc-75d8dea7416a","block_type":"box","text":"after January 1, 2020, Hong Kong’s Investor Compensation Fund covers investors’ losses in relation to","page_number":151,"box":{"x":116,"y":351,"width":769,"height":12}},{"id":"2a64140e-0c6a-4638-ae82-8c6cc864ccae","block_type":"box","text":"securities (i) that are traded on the SSE or the SZSE and (ii) in respect of which an order for sale or","page_number":151,"box":{"x":116,"y":366,"width":743,"height":12}},{"id":"b3a30701-3791-4d0e-9b00-152e0f89052c","block_type":"box","text":"purchase is permitted to be routed through the Northbound Trading Link of a Stock Connect. On the","page_number":151,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"ba65c2c8-7353-4779-b2c2-7c6cb22b9e75","block_type":"box","text":"other hand, since a Fund carries out Northbound trading through securities brokers in Hong Kong but","page_number":151,"box":{"x":116,"y":397,"width":756,"height":12}},{"id":"f503c327-a11a-4932-a5b6-064b8b3a9164","block_type":"box","text":"not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the PRC.","page_number":151,"box":{"x":117,"y":413,"width":722,"height":12}},{"id":"c8f339b7-d9ff-473c-980b-f708cd1fbf42","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information","page_number":151,"box":{"x":117,"y":444,"width":737,"height":12}},{"id":"c3001ad7-1ac3-4b50-85c5-23a9152d15a6","block_type":"box","text":"technology capability, risk management and other requirements as may be specified by the relevant","page_number":151,"box":{"x":116,"y":459,"width":746,"height":12}},{"id":"5824df55-af34-44a9-9ec0-6a8c2acec59a","block_type":"box","text":"exchange and/or clearing house. Further, the “connectivity” in Stock Connects requires routing of","page_number":151,"box":{"x":116,"y":475,"width":725,"height":12}},{"id":"98bc0e61-5003-41ca-a5d7-89fdde97a1dc","block_type":"box","text":"orders across the border of Hong Kong and the PRC. This requires the development of new","page_number":151,"box":{"x":116,"y":490,"width":687,"height":12}},{"id":"59cd34e5-f432-430f-b286-e77950f49376","block_type":"box","text":"information technology systems on the part of SEHK and exchange participants. There is no assurance","page_number":151,"box":{"x":117,"y":506,"width":771,"height":12}},{"id":"5eea4e05-27b4-43f6-a789-85e3b8f0a3a6","block_type":"box","text":"that the systems of SEHK and market participants will function properly or will continue to be adapted","page_number":151,"box":{"x":116,"y":521,"width":757,"height":12}},{"id":"a74699bb-7203-458e-825b-12327d8c2724","block_type":"box","text":"to changes and developments in both markets. In the event that the relevant systems fail to function","page_number":151,"box":{"x":116,"y":537,"width":747,"height":12}},{"id":"ee77c090-c990-470a-a942-f85aa4631b3c","block_type":"box","text":"properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":151,"box":{"x":117,"y":552,"width":667,"height":12}},{"id":"b99d3496-b699-45d0-9ce7-2500f8ed52c1","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the","page_number":151,"box":{"x":116,"y":583,"width":656,"height":12}},{"id":"3a8d5d19-8275-4f12-b096-2a9e9295b753","block_type":"box","text":"Shenzhen-Hong Kong Stock Connect program launched in December 2016. Each program does not","page_number":151,"box":{"x":116,"y":599,"width":751,"height":12}},{"id":"59ab3457-9e96-4d60-9c57-24bebe733576","block_type":"box","text":"have an extensive operating history. New or revised regulations may be issued from time to time by the","page_number":151,"box":{"x":117,"y":614,"width":771,"height":12}},{"id":"9cc8f36e-d083-441b-ad59-9918e8bbd8c9","block_type":"box","text":"regulators and stock exchanges in China and Hong Kong in connection with operations, legal","page_number":151,"box":{"x":117,"y":630,"width":695,"height":12}},{"id":"1216401d-f1d6-42d3-8a4a-f66f92847540","block_type":"box","text":"enforcement and cross-border trades under Stock Connects. In addition, there can be no assurance","page_number":151,"box":{"x":116,"y":645,"width":748,"height":11}},{"id":"d0da0df6-ad97-4ea9-b766-59a5c60023ac","block_type":"box","text":"that Stock Connect will not be discontinued. A Fund may be adversely affected as a result of such","page_number":151,"box":{"x":116,"y":661,"width":726,"height":12}},{"id":"93c7f6bc-c570-4862-8ec7-e9fec24c0392","block_type":"box","text":"changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":151,"box":{"x":116,"y":676,"width":709,"height":12}},{"id":"b81f0f85-1904-4125-8131-6e348f397697","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the","page_number":151,"box":{"x":116,"y":692,"width":722,"height":12}},{"id":"5df496c7-c543-425d-8ba4-a7f9df2f5bc7","block_type":"box","text":"relevant systems fail to function properly, trading in both markets through Stock Connects could be","page_number":151,"box":{"x":117,"y":707,"width":732,"height":12}},{"id":"b711ad46-48e8-495b-98cb-925ee7033dd8","block_type":"box","text":"disrupted and a Fund’s ability to achieve its investment objective may be adversely affected. In","page_number":151,"box":{"x":116,"y":723,"width":702,"height":12}},{"id":"0a2f5a0c-aa16-4796-b230-ef2e024122af","block_type":"box","text":"addition, a Fund’s investments in Stock Connect Securities through Stock Connects are generally","page_number":151,"box":{"x":116,"y":738,"width":724,"height":12}},{"id":"a7eb89c3-e7e6-4e02-914c-35cc9e5d9f6a","block_type":"box","text":"subject to Chinese securities regulations and listing rules, among other restrictions. Further, different","page_number":151,"box":{"x":116,"y":754,"width":746,"height":12}},{"id":"f6372509-62aa-4f2d-801d-73e155022db9","block_type":"box","text":"fees, costs and taxes are imposed on foreign investors acquiring Stock Connect Securities through","page_number":151,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"159cfe27-ff15-428d-aa55-f60311b1178b","block_type":"box","text":"Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":151,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"f427c0d3-369c-4b30-a1a5-e401d6cf7683","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":151,"box":{"x":116,"y":800,"width":618,"height":12}},{"id":"80877320-bf59-4202-8c2d-c43226830808","block_type":"box","text":"Suspension Risk","page_number":151,"box":{"x":117,"y":831,"width":125,"height":12}},{"id":"6adcd414-105d-436e-8817-6933088a014c","block_type":"box","text":". SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at","page_number":151,"box":{"x":242,"y":831,"width":634,"height":12}},{"id":"09ecfc66-bf1e-4c79-93a4-c3d914b02f0c","block_type":"box","text":"times when the relevant SSE Securities and SZSE Securities may be sold or purchased on the","page_number":151,"box":{"x":116,"y":847,"width":709,"height":12}},{"id":"990e5e45-1604-4bbf-8d83-b7a92cdd87dd","block_type":"box","text":"relevant Chinese stock exchange. The SSE Securities and SZSE Securities markets have a higher","page_number":151,"box":{"x":117,"y":862,"width":738,"height":12}},{"id":"305da966-4b51-4c73-ba1a-947483c728a8","block_type":"box","text":"propensity for trading suspensions than many other global equity markets. Each of the SEHK, SSE and","page_number":151,"box":{"x":117,"y":878,"width":771,"height":12}},{"id":"ffb697a0-76a4-49d7-a768-f29455baab14","block_type":"box","text":"II-57","page_number":151,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"af0216ab-2394-4243-8a1f-e0ee958a2bd8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":151,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f3b9629a-4431-4492-990c-0a600dbbda66","block_type":"box","text":"SZSE reserves the right to suspend trading of SSE Securities and SZSE Securities purchased on the","page_number":152,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"41b0410d-e0b9-4085-900a-5abcc9897ae2","block_type":"box","text":"Stock Connects if necessary for ensuring an orderly and fair market and ensuring that risks are","page_number":152,"box":{"x":116,"y":102,"width":710,"height":13}},{"id":"1472ccdc-7f4a-474d-9f94-0d27a2072fad","block_type":"box","text":"managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":152,"box":{"x":117,"y":118,"width":724,"height":12}},{"id":"a4e440c9-190d-4247-acf3-7ac7325c9c3a","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit","page_number":152,"box":{"x":117,"y":134,"width":727,"height":12}},{"id":"517dc4d8-96b6-42cb-b884-0902d6c95d01","block_type":"box","text":"breakers” and other measures to halt or suspend Northbound trading. Where a suspension in the","page_number":152,"box":{"x":117,"y":149,"width":725,"height":12}},{"id":"d597f226-81ca-4133-b522-ed964713be4e","block_type":"box","text":"Northbound trading through Stock Connect is effected, the Fund’s ability to access the PRC market will","page_number":152,"box":{"x":117,"y":165,"width":769,"height":12}},{"id":"b07bf653-4034-4f66-8001-2028789f606f","block_type":"box","text":"be adversely affected. Trading suspensions in certain stocks could lead to greater market execution","page_number":152,"box":{"x":117,"y":180,"width":745,"height":12}},{"id":"c27d1910-a5a1-440c-acf2-e5428b98f433","block_type":"box","text":"risk and costs for a Fund. The SSE and SZSE currently","page_number":152,"box":{"x":117,"y":196,"width":415,"height":12}},{"id":"61262314-0f62-4050-8cc6-e020e60970c7","block_type":"box","text":"apply a daily price limit, generally set at 10%,","page_number":152,"box":{"x":533,"y":196,"width":340,"height":12}},{"id":"92246c5a-7e90-4252-b799-ee2f44115392","block_type":"box","text":"of the amount of fluctuation permitted in the prices of the relevant SSE Securities and SZSE Securities","page_number":152,"box":{"x":116,"y":211,"width":766,"height":12}},{"id":"c86141b6-789c-48da-8dc0-22bed5d1b5da","block_type":"box","text":"during a single trading day. The daily price limit refers to price movements only and does not restrict","page_number":152,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"98afeba6-d7c1-4ace-8261-d83c301e719c","block_type":"box","text":"trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":152,"box":{"x":116,"y":242,"width":744,"height":12}},{"id":"2b8d499e-8fef-4935-98aa-74499fc656a0","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":152,"box":{"x":116,"y":258,"width":598,"height":12}},{"id":"182d1b6f-ab93-4574-9148-8ec80bc9fb2d","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect","page_number":152,"box":{"x":116,"y":289,"width":567,"height":12}},{"id":"9a9f0412-de5a-469f-a071-a9602266d2a9","block_type":"box","text":". A Fund may invest","page_number":152,"box":{"x":683,"y":289,"width":152,"height":12}},{"id":"d9b552ed-3cdd-420e-b654-c6ba77a30bdc","block_type":"box","text":"directly in the domestic bond market in the PRC (the “China Interbank Bond Market”) through the","page_number":152,"box":{"x":116,"y":304,"width":724,"height":12}},{"id":"9463f60b-c173-4a28-800e-dd9ee06f954f","block_type":"box","text":"northbound trading of Bond Connect (“Bond Connect”). Bond Connect is an initiative launched in July","page_number":152,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"c81578e9-8e2b-4749-ad34-587cd5cb16a4","block_type":"box","text":"2017 for mutual bond market access between the PRC and Hong Kong, established by the China","page_number":152,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"4a9c2128-46c2-4af4-b8e9-1e50dd4901f0","block_type":"box","text":"Foreign Exchange Trade System & National Interbank Funding Centre (“CFETS”), China Central","page_number":152,"box":{"x":117,"y":351,"width":722,"height":12}},{"id":"1dbafe0d-07ac-4733-9b6a-54578fdb8d67","block_type":"box","text":"Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”), Hong Kong Exchanges","page_number":152,"box":{"x":117,"y":366,"width":752,"height":12}},{"id":"a21fc133-ebed-4242-83db-0c3da86fb9d3","block_type":"box","text":"and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":152,"box":{"x":116,"y":382,"width":699,"height":12}},{"id":"2eaac8d4-d1cb-4ebc-bed1-3a8e7b21d0a2","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the","page_number":152,"box":{"x":117,"y":397,"width":738,"height":12}},{"id":"efe2dd82-29f3-4d23-97c8-51b64d0b2b8a","block_type":"box","text":"China Interbank Bond Market through Bond Connect. Eligible foreign investors may submit trade","page_number":152,"box":{"x":117,"y":413,"width":721,"height":12}},{"id":"b845cd94-0bc4-47a9-bfb3-f54cceda1802","block_type":"box","text":"requests for bonds circulated in the China Interbank Bond Market through offshore electronic bond","page_number":152,"box":{"x":117,"y":428,"width":735,"height":12}},{"id":"88d84cd1-b4aa-44c7-ad2b-bd0e5b330d66","block_type":"box","text":"trading platforms (such as Tradeweb), which will in turn transmit their requests for quotation to CFETS.","page_number":152,"box":{"x":116,"y":444,"width":768,"height":12}},{"id":"5303bb29-0a4b-4957-a1f9-46a8ada94ca6","block_type":"box","text":"CFETS will send the requests for quotation to a number of approved onshore dealers (including market","page_number":152,"box":{"x":117,"y":459,"width":770,"height":12}},{"id":"60f3033a-2a64-48da-96a6-d4ae27efde75","block_type":"box","text":"makers and others engaged in the market making business) in the PRC. The approved onshore","page_number":152,"box":{"x":117,"y":475,"width":715,"height":12}},{"id":"6b81eaf6-1bbf-4e3e-a1a0-ccc59456e6e1","block_type":"box","text":"dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their responses to","page_number":152,"box":{"x":116,"y":490,"width":765,"height":12}},{"id":"d96821fe-6265-47bf-a205-1033ea21a158","block_type":"box","text":"those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":152,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"450e7d66-4202-47b2-bea1-477f13204ae9","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":152,"box":{"x":116,"y":521,"width":603,"height":12}},{"id":"3340cd0f-2f43-4f75-81e1-11fbb98e8248","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect","page_number":152,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"dfe61b4d-bc9a-4365-aef2-67e081d2cd75","block_type":"box","text":"will be effected through the settlement and custody link between CMU, as an offshore custody agent,","page_number":152,"box":{"x":116,"y":568,"width":755,"height":12}},{"id":"661ae671-8935-4b11-8641-90a570ee7eca","block_type":"box","text":"and CDCC and SCH, as onshore custodians and clearing institutions in the PRC. Under the settlement","page_number":152,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"7a999fea-f0b7-44f9-86d9-723ec3359704","block_type":"box","text":"link, CDCC or SCH will effect gross settlement of confirmed trades onshore and CMU will process","page_number":152,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"11096d82-9cce-4223-9f17-647795099a07","block_type":"box","text":"bond settlement instructions from CMU members on behalf of eligible foreign investors in accordance","page_number":152,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"96544e77-8239-403d-9700-e8f611a3e1e3","block_type":"box","text":"with its relevant rules. Since the introduction in August 2018 of delivery versus payment (DVP)","page_number":152,"box":{"x":116,"y":630,"width":705,"height":12}},{"id":"bf4cd631-5730-4007-86de-734cfeefd2f9","block_type":"box","text":"settlement in respect of Bond Connect, the movement of cash and securities is carried out","page_number":152,"box":{"x":116,"y":645,"width":675,"height":12}},{"id":"d82f5835-ff1c-4b1c-b76a-c376ead5ced2","block_type":"box","text":"simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":152,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"c6b41044-d660-4e0a-87b5-0efb2e62ac44","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee","page_number":152,"box":{"x":116,"y":676,"width":754,"height":12}},{"id":"219089c5-cf8e-48b0-89c6-96a57d143e2f","block_type":"box","text":"accounts with the onshore custody agent recognized by the People’s Bank of China (i.e., CDCC and","page_number":152,"box":{"x":116,"y":692,"width":744,"height":12}},{"id":"eedab512-b841-473e-8b3a-b40512acc9f5","block_type":"box","text":"SCH). All bonds traded by eligible foreign investors through Bond Connect will be registered in the","page_number":152,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"2068dabe-3c43-4c75-a9b1-eaafa18b6fbd","block_type":"box","text":"name of CMU, which will hold such bonds as a nominee owner. Therefore, a Fund will be exposed to","page_number":152,"box":{"x":117,"y":723,"width":748,"height":12}},{"id":"2b2357c4-7f68-4de2-ac2a-33ad3acb79ab","block_type":"box","text":"custody risks with respect to CMU. In the remote event of a CDCC or SCH default, CMU’s liabilities in","page_number":152,"box":{"x":116,"y":738,"width":754,"height":12}},{"id":"88fd5571-d45a-4177-8a03-68cdd8203a83","block_type":"box","text":"Bond Connect bonds under its market contracts with clearing participants will be limited to assisting","page_number":152,"box":{"x":117,"y":754,"width":736,"height":12}},{"id":"f78b9d51-3612-48cc-afa4-a2ffd44425fe","block_type":"box","text":"clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer delay in the","page_number":152,"box":{"x":116,"y":769,"width":753,"height":12}},{"id":"c5ed53e4-e710-418f-bd98-ea2b7edc1668","block_type":"box","text":"recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":152,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"0dd6bc8d-8858-43de-a2c6-30efa18e8b00","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by","page_number":152,"box":{"x":116,"y":800,"width":733,"height":12}},{"id":"14ac17f6-dba1-46bf-aefb-c872977fcb78","block_type":"box","text":"third parties, including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or","page_number":152,"box":{"x":116,"y":816,"width":723,"height":12}},{"id":"72e8a48c-237d-4a76-b421-dda8e1c7283a","block_type":"box","text":"errors on the part of such third parties.","page_number":152,"box":{"x":116,"y":831,"width":290,"height":12}},{"id":"9e9f9815-1528-449a-aa25-1c524d12a889","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China","page_number":152,"box":{"x":116,"y":862,"width":720,"height":12}},{"id":"0d6cb50a-f241-451e-86d8-51b8378db5a2","block_type":"box","text":"Interbank Bond Market through CMU as nominee is not well-defined under PRC law. There is a lack of","page_number":152,"box":{"x":117,"y":878,"width":765,"height":12}},{"id":"877b3ddf-34c0-4e38-a573-579acbe26545","block_type":"box","text":"II-58","page_number":152,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"fff92978-c374-4c34-8859-d4d5202ac11a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":152,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"59712cf7-dd9e-45e7-af5a-bad4719c7626","block_type":"box","text":"a clear definition of, and distinction between, legal ownership and beneficial ownership under PRC law","page_number":153,"box":{"x":116,"y":87,"width":765,"height":12}},{"id":"a3f176f3-f5d6-4025-aae5-4cbb29490d55","block_type":"box","text":"and there have been few cases involving a nominee account structure in the PRC courts. The exact","page_number":153,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"2cc52d2f-535c-4417-9f7c-60ce4c6f45b6","block_type":"box","text":"nature and methods of enforcement of the rights and interests of a Fund under PRC law are also","page_number":153,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"86515644-5441-4ea3-91d8-a1ff27029c71","block_type":"box","text":"uncertain.","page_number":153,"box":{"x":117,"y":134,"width":77,"height":9}},{"id":"248e1509-16d1-431a-8d9e-dbf930b7ebe3","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China","page_number":153,"box":{"x":117,"y":164,"width":750,"height":12}},{"id":"b130bd30-9ca0-4e12-a022-5ac1f5c9cd22","block_type":"box","text":"Interbank Bond Market may result in prices of certain bonds traded on such market fluctuating","page_number":153,"box":{"x":117,"y":179,"width":702,"height":12}},{"id":"d7d76f89-a56f-470c-956c-c39f39edd77f","block_type":"box","text":"significantly. A Fund investing in such market is therefore subject to liquidity and volatility risks. The","page_number":153,"box":{"x":116,"y":194,"width":742,"height":12}},{"id":"68020712-1a8e-43bc-a27e-e43fa32c9cee","block_type":"box","text":"bid-ask spreads of the prices of such securities may be large, and a Fund may therefore incur","page_number":153,"box":{"x":117,"y":209,"width":700,"height":12}},{"id":"7a496f23-c1ca-4877-8b98-4a2cac6293e0","block_type":"box","text":"significant costs and may suffer losses when selling such investments. The bonds traded in the China","page_number":153,"box":{"x":116,"y":224,"width":759,"height":12}},{"id":"492408a1-a1fe-4ab0-af1a-b0b912663558","block_type":"box","text":"Interbank Bond Market may be difficult or impossible to sell, which may impact a Fund’s ability to","page_number":153,"box":{"x":117,"y":239,"width":722,"height":12}},{"id":"11b1f805-2934-4fb4-971f-ff6a4135e252","block_type":"box","text":"acquire or dispose of such securities at their expected prices.","page_number":153,"box":{"x":116,"y":254,"width":460,"height":12}},{"id":"9ecabd19-b9c1-4343-bc6a-38b4056ed713","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks.","page_number":153,"box":{"x":117,"y":284,"width":766,"height":12}},{"id":"a2230b70-a66c-4e69-840c-92b4b93e36e2","block_type":"box","text":"The relevant rules and regulations are subject to change, which may have potential retrospective","page_number":153,"box":{"x":116,"y":299,"width":724,"height":12}},{"id":"501fe499-2086-49f2-8630-7371b26c8369","block_type":"box","text":"effect, and there can be no assurance that Bond Connect will not be discontinued or abolished.","page_number":153,"box":{"x":116,"y":314,"width":711,"height":11}},{"id":"d74275f2-0973-48c6-bbcd-f37500c8ffcd","block_type":"box","text":"Furthermore, the securities regimes and legal systems of China and Hong Kong differ significantly and","page_number":153,"box":{"x":117,"y":329,"width":764,"height":12}},{"id":"0fc9635c-7325-4b32-97ad-204960397d85","block_type":"box","text":"issues may arise based on these differences. In the event that the relevant authorities suspend","page_number":153,"box":{"x":117,"y":344,"width":709,"height":12}},{"id":"916e23b0-f420-4cc5-8901-7fe3fb345f1b","block_type":"box","text":"account opening or trading on the China Interbank Bond Market, a Fund’s ability to invest in the China","page_number":153,"box":{"x":116,"y":359,"width":762,"height":12}},{"id":"4b01a868-43d0-4c23-90db-c66d68299660","block_type":"box","text":"Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability to","page_number":153,"box":{"x":117,"y":374,"width":716,"height":12}},{"id":"bb4de09f-0958-4f29-9742-5da6d089327c","block_type":"box","text":"achieve its investment objective will be negatively affected and, after exhausting other trading","page_number":153,"box":{"x":116,"y":389,"width":699,"height":12}},{"id":"52e0656f-2263-40f2-b767-648013c94598","block_type":"box","text":"alternatives, the Fund may suffer substantial losses as a result. Further, if Bond Connect is not","page_number":153,"box":{"x":116,"y":404,"width":707,"height":12}},{"id":"f8bcad33-a608-4733-9b6e-090f53f909f1","block_type":"box","text":"operating, a Fund may not be able to acquire or dispose of bonds through Bond Connect in a timely","page_number":153,"box":{"x":116,"y":419,"width":745,"height":12}},{"id":"9a84259f-10ac-49aa-ba7f-fbca15d58821","block_type":"box","text":"manner, which could adversely affect the Fund’s performance.","page_number":153,"box":{"x":117,"y":434,"width":467,"height":12}},{"id":"4b580efe-02fe-4605-8ca4-d13544391a5c","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and","page_number":153,"box":{"x":116,"y":464,"width":687,"height":12}},{"id":"5dd41096-b9d3-469f-82d1-d69b3ed48ae2","block_type":"box","text":"operational systems. There is no assurance that such systems will function properly or will continue to","page_number":153,"box":{"x":116,"y":479,"width":761,"height":12}},{"id":"31684ad7-76bb-4391-9af4-9945b6fec853","block_type":"box","text":"be adapted to changes and developments in the market. In the event that the relevant systems fail to","page_number":153,"box":{"x":117,"y":494,"width":753,"height":12}},{"id":"c3ac6870-ed97-42a3-81cb-a6aa2a0bdeb9","block_type":"box","text":"function properly, trading through Bond Connect may be disrupted. A Fund’s ability to trade through","page_number":153,"box":{"x":116,"y":509,"width":744,"height":12}},{"id":"1d2141f4-45db-423c-8854-251a19c1149d","block_type":"box","text":"Bond Connect (and hence to pursue its investment strategy) may therefore be adversely affected. In","page_number":153,"box":{"x":117,"y":524,"width":749,"height":12}},{"id":"eb6f5337-2a0b-44a5-b501-28a5f2cff62a","block_type":"box","text":"addition, where a Fund invests in the China Interbank Bond Market through Bond Connect, it may be","page_number":153,"box":{"x":116,"y":539,"width":753,"height":12}},{"id":"9bd0af6c-50a2-427b-a42e-68b057ebcec5","block_type":"box","text":"subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":153,"box":{"x":116,"y":554,"width":607,"height":12}},{"id":"3172998d-ff37-4c92-a28d-476c6038394d","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not","page_number":153,"box":{"x":117,"y":584,"width":746,"height":12}},{"id":"bd158fa6-bcd4-42a6-8c19-56f61e9b6c25","block_type":"box","text":"freely convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed","page_number":153,"box":{"x":116,"y":599,"width":740,"height":12}},{"id":"fbb648d1-6498-4720-8cc4-dc749423d89b","block_type":"box","text":"that investors will have timely access to a reliable supply of RMB.","page_number":153,"box":{"x":116,"y":614,"width":490,"height":12}},{"id":"d91eb325-3051-4e73-9ce0-059b4c523241","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk.","page_number":153,"box":{"x":118,"y":645,"width":309,"height":12}},{"id":"2742d3e5-22a2-46bb-808b-c4477dbc6a33","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends","page_number":153,"box":{"x":116,"y":667,"width":760,"height":12}},{"id":"47e8d540-24f3-4239-96f4-4e1e9b9842fb","block_type":"box","text":"and interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is","page_number":153,"box":{"x":116,"y":682,"width":755,"height":12}},{"id":"0f6f7c73-baec-424a-b055-3dff3257485d","block_type":"box","text":"reduced under an applicable tax treaty. From a technical perspective, withholding income tax is also","page_number":153,"box":{"x":117,"y":697,"width":733,"height":12}},{"id":"ba529f9e-9d22-4a90-af30-3a690fa86f6e","block_type":"box","text":"applicable to capital gains realized by foreign investors on the disposal of PRC equity interests.","page_number":153,"box":{"x":116,"y":712,"width":697,"height":12}},{"id":"c6a86a16-c2cf-4799-8f1b-a2b76996fb3e","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":153,"box":{"x":116,"y":742,"width":729,"height":12}},{"id":"4f00ce0d-b49c-4227-8909-e6ad458f368f","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“Mo","page_number":153,"box":{"x":116,"y":772,"width":375,"height":12}},{"id":"249e8815-9927-483b-a4fa-992aabc62931","block_type":"box","text":"F”), China Securities Regulatory Commission and the","page_number":153,"box":{"x":493,"y":772,"width":379,"height":12}},{"id":"b57dc25b-6ace-4741-ad25-e00dcfddb848","block_type":"box","text":"State Taxation Administration (“STA”), acting with St","page_number":153,"box":{"x":116,"y":787,"width":372,"height":12}},{"id":"7073a0f6-e1ae-4c60-bf54-90f6e1e87b1b","block_type":"box","text":"ate Council’s approval, jointly released Circular 79,","page_number":153,"box":{"x":489,"y":787,"width":359,"height":12}},{"id":"f68efbe5-cbf8-4041-83a8-897478464712","block_type":"box","text":"which temporarily exempts Qualified Foreign Instit","page_number":153,"box":{"x":116,"y":802,"width":356,"height":12}},{"id":"45072e93-f30f-404e-ae8c-cd63411a6d93","block_type":"box","text":"utional Investors (“QFIIs”) and Renminbi Qualified","page_number":153,"box":{"x":473,"y":802,"width":352,"height":12}},{"id":"f4c4d077-0843-4063-8615-5d765086eb82","block_type":"box","text":"Foreign Institutional Investors (“RQFIIs”) from tax on","page_number":153,"box":{"x":117,"y":817,"width":369,"height":12}},{"id":"bf99e17a-1942-4c51-bec6-7d292ce971d7","block_type":"box","text":"capital gains derived from the trading of shares and","page_number":153,"box":{"x":492,"y":817,"width":365,"height":12}},{"id":"2e21c9ae-e10f-475b-9732-8178b7dec09b","block_type":"box","text":"other equity interest investments on or after No","page_number":153,"box":{"x":116,"y":832,"width":334,"height":12}},{"id":"dea11cda-db80-49a7-b735-bd50cdc6ccea","block_type":"box","text":"vember 17, 2014. Subsequently, Circulars 81 and 127 were","page_number":153,"box":{"x":450,"y":832,"width":429,"height":12}},{"id":"7079fda7-84bc-4c36-a98f-eafed65cea3a","block_type":"box","text":"issued to temporarily exempt tax on capital gains der","page_number":153,"box":{"x":117,"y":847,"width":375,"height":12}},{"id":"cd67bfd6-70aa-4612-87c9-eeb058cae5d4","block_type":"box","text":"ived from trading of equity securities of companies","page_number":153,"box":{"x":493,"y":847,"width":361,"height":12}},{"id":"e1569d4b-afb8-43ef-9529-623438f3d0b0","block_type":"box","text":"domiciled in the PRC that trade on Chinese stock exchanges (“A-Shares”) through the Shanghai-Hong","page_number":153,"box":{"x":116,"y":862,"width":734,"height":12}},{"id":"ff9baa0a-0850-46df-8d80-2521cb28a3d8","block_type":"box","text":"Kong Stock Connect program or the Shenzhen-Hong Kong Stock Connect program, as applicable (each, a","page_number":153,"box":{"x":117,"y":877,"width":764,"height":12}},{"id":"97427d59-fb0d-4ea0-a9be-a4cf839e203f","block_type":"box","text":"II-59","page_number":153,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3547b293-8b31-4d8e-ba55-b426da9d9fce","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":153,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4ee11937-7582-429f-9b65-aafc03140329","block_type":"box","text":"“Stock Connect” and collectively, “Stock Connects”). The dur","page_number":154,"box":{"x":116,"y":86,"width":431,"height":13}},{"id":"16b9eb9f-673b-4534-8fe1-8d5f9b3990f6","block_type":"box","text":"ation of the temporary exemptions is not stated","page_number":154,"box":{"x":548,"y":86,"width":338,"height":13}},{"id":"21988f5d-19a8-41d9-ad5b-f83c34e38de8","block_type":"box","text":"in the circulars and is subject to termination by","page_number":154,"box":{"x":117,"y":102,"width":328,"height":12}},{"id":"1c27a723-508d-4503-8860-306ed9bbd4ad","block_type":"box","text":"the PRC tax authorities w","page_number":154,"box":{"x":445,"y":101,"width":175,"height":10}},{"id":"0ececae7-0862-40ba-9621-821c8508d6ff","block_type":"box","text":"with or without notice.","page_number":154,"box":{"x":620,"y":102,"width":159,"height":9}},{"id":"ae1d3bb6-4428-45ab-b124-9c2d95ce6bbc","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":154,"box":{"x":116,"y":133,"width":766,"height":12}},{"id":"e7399626-4829-4a29-bf45-7c3bfaf6018b","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds","page_number":154,"box":{"x":117,"y":148,"width":742,"height":12}},{"id":"45e33313-4577-4731-9fdb-595363c4978e","block_type":"box","text":"derived from the PRC bond market from November 7, 2018 to November 6, 2021. On November 22,","page_number":154,"box":{"x":116,"y":163,"width":727,"height":11}},{"id":"15f14442-d49e-4442-982c-600f20baa6c0","block_type":"box","text":"2021, the MoF and STA issued Public Notice 34 to extend the temporary exemption from November 7,","page_number":154,"box":{"x":116,"y":178,"width":743,"height":12}},{"id":"1e2fd3b6-f083-4b3a-b05f-fbfee80ef9fc","block_type":"box","text":"2021 to December 31, 2025. On January 15, 2026, it was announced via Public Notice No. 5 of 2026 that","page_number":154,"box":{"x":116,"y":193,"width":762,"height":12}},{"id":"dddfcf28-ba03-480d-a3cd-99a37f81c484","block_type":"box","text":"the exemption was extended through December 31, 2027.","page_number":154,"box":{"x":116,"y":208,"width":424,"height":12}},{"id":"6ae00aa0-16f0-4ba4-acfa-b2dd96dcdec1","block_type":"box","text":"Value Added Tax (“VAT”) Risk","page_number":154,"box":{"x":118,"y":239,"width":225,"height":13}},{"id":"5ae55678-72af-4ff8-a4d3-4e38f4d912c1","block_type":"box","text":"k — From May 1, 2016, VAT applies to certain income derived by the","page_number":154,"box":{"x":342,"y":240,"width":511,"height":12}},{"id":"00228dd5-ef40-4917-8d9d-b91a280a8058","block_type":"box","text":"Fund, including PRC sourced interest income on non-government bonds and trading gains.","page_number":154,"box":{"x":117,"y":255,"width":681,"height":12}},{"id":"58488d71-e4fe-4d46-b004-e6f8494d8d40","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":154,"box":{"x":116,"y":286,"width":735,"height":12}},{"id":"d889c6e8-14a8-4068-9b7d-a0bb4b1e9975","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares","page_number":154,"box":{"x":116,"y":317,"width":741,"height":13}},{"id":"0d961a25-2965-44c3-8ef6-28e16e0c0393","block_type":"box","text":"traded on the Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":154,"box":{"x":116,"y":332,"width":699,"height":10}},{"id":"56fcf651-0455-4c7a-b7e0-ddc28ad96473","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign","page_number":154,"box":{"x":116,"y":364,"width":694,"height":12}},{"id":"04ff9fce-ba70-4019-ac84-4dccf5f2984f","block_type":"box","text":"institutional investors are temporarily exempt from VAT with respect to interest income on bonds","page_number":154,"box":{"x":117,"y":379,"width":718,"height":12}},{"id":"dec21278-2fb5-49a0-a91e-e1f45301c847","block_type":"box","text":"derived from the PRC bond market from November 7, 2018 to November 6, 2021. On November 22,","page_number":154,"box":{"x":116,"y":394,"width":750,"height":11}},{"id":"9b7420de-8013-4e6c-81f5-dad0f6ba3f2b","block_type":"box","text":"2021, the MoF and STA jointly issued Public Notice 34 to extend the temporary exemption from","page_number":154,"box":{"x":116,"y":409,"width":714,"height":12}},{"id":"e7be37e9-deb6-4bd0-95ad-e121d24f2267","block_type":"box","text":"November 7, 2021 to December 31, 2025. However, on July 31, 2025, the MoF and STA jointly issued","page_number":154,"box":{"x":117,"y":424,"width":764,"height":12}},{"id":"59aff2d0-fad2-410a-b5e9-72a33de3d3dc","block_type":"box","text":"Public Notice No 4 of 2025, stating that VAT will apply with respect to interest income derived from","page_number":154,"box":{"x":117,"y":439,"width":735,"height":12}},{"id":"b68aa536-f13f-41e1-a9d6-b9881431c0e5","block_type":"box","text":"treasury bonds, local government bonds and financial bonds issued on or after August 8, 2025. It is","page_number":154,"box":{"x":116,"y":454,"width":742,"height":12}},{"id":"75a20ee9-fbb7-4397-b273-d13a7dd7b9ce","block_type":"box","text":"understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption for","page_number":154,"box":{"x":117,"y":469,"width":739,"height":12}},{"id":"4401094b-e394-435b-89f5-b64190e7313e","block_type":"box","text":"foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":154,"box":{"x":116,"y":484,"width":668,"height":12}},{"id":"5466e582-d334-46a6-a561-6842320dcb04","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement","page_number":154,"box":{"x":116,"y":515,"width":754,"height":12}},{"id":"bc847f29-d288-4d18-a61f-9859675586f1","block_type":"box","text":"by the PRC tax authorities may result in a loss which could be material to the Fund. There is a risk the","page_number":154,"box":{"x":117,"y":530,"width":761,"height":12}},{"id":"9944466b-90b7-43d9-a107-878351f13a39","block_type":"box","text":"PRC tax authorities may withdraw the temporary tax exemptions in the future and seek to collect taxes","page_number":154,"box":{"x":117,"y":545,"width":765,"height":12}},{"id":"32fd2972-9825-4ae0-ba4c-46d5b7f61e8f","block_type":"box","text":"realized on the sale of A-Shares or PRC sourced interest income on non-government bonds received","page_number":154,"box":{"x":117,"y":560,"width":756,"height":12}},{"id":"6964d0b2-d3ee-4909-83e4-74562dd875d8","block_type":"box","text":"by the Fund without giving any prior notice. If the temporary tax exemptions are withdrawn, any taxes","page_number":154,"box":{"x":117,"y":575,"width":755,"height":12}},{"id":"d4f354df-ed31-4bdb-a972-b33a4083a248","block_type":"box","text":"may be directly borne by or indirectly passed on to the Fund and may result in a substantial impact to","page_number":154,"box":{"x":117,"y":590,"width":755,"height":12}},{"id":"6d46e390-433d-4d96-a79f-6fe1791eea8d","block_type":"box","text":"its net asset value. As with any net asset value adjustment, investors may be advantaged or","page_number":154,"box":{"x":117,"y":605,"width":687,"height":12}},{"id":"ea6f042c-aeb0-4030-b6da-77aa1527086f","block_type":"box","text":"disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":154,"box":{"x":116,"y":620,"width":763,"height":12}},{"id":"72191543-932f-42f3-97e7-666b57c4c27e","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":154,"box":{"x":116,"y":635,"width":494,"height":12}},{"id":"90d062db-5143-48ef-bd29-2d4b21f4f2ee","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from","page_number":154,"box":{"x":117,"y":666,"width":752,"height":12}},{"id":"c5361aa6-e543-44dd-9af3-d1ee649f05ab","block_type":"box","text":"time to time, make a provision for potential tax liabilities if in its opinion such provision is warranted or","page_number":154,"box":{"x":116,"y":681,"width":751,"height":12}},{"id":"21411ee6-f2e7-421d-a00b-1dfb9ff46a34","block_type":"box","text":"as further clarified by the PRC in notifications.","page_number":154,"box":{"x":116,"y":696,"width":339,"height":12}},{"id":"8399ca87-8182-41b9-a0d4-e29d4f17e7d2","block_type":"box","text":"Investment in Other Investment Companies.","page_number":154,"box":{"x":116,"y":727,"width":350,"height":12}},{"id":"d8a6f173-de00-418f-9852-068ea7f0d20e","block_type":"box","text":"Each Fund may, subject to applicable law, invest in","page_number":154,"box":{"x":474,"y":727,"width":378,"height":12}},{"id":"36a2f838-1c52-49f6-a019-15d1622a1fd0","block_type":"box","text":"other investment companies (including investment companies managed by BlackRock and its","page_number":154,"box":{"x":116,"y":742,"width":694,"height":12}},{"id":"44c8a40c-d996-4801-b39c-fb901a23080b","block_type":"box","text":"affiliates), including money market funds and ETFs, which are typically open-end funds or unit","page_number":154,"box":{"x":116,"y":757,"width":697,"height":12}},{"id":"5d7feceb-ca87-4b5b-be60-b32c2496740b","block_type":"box","text":"investment trusts listed on a stock exchange. Under Section 12(d)(1)(A) of the Investment Company","page_number":154,"box":{"x":117,"y":772,"width":743,"height":12}},{"id":"6070e15e-96af-4b7b-824a-9e4c8d4e1bdc","block_type":"box","text":"Act, however, a Fund may invest up to 10% of its total assets in securities of other investment","page_number":154,"box":{"x":116,"y":787,"width":696,"height":12}},{"id":"cba291d9-58f8-419f-8edc-22d089ea7245","block_type":"box","text":"companies (measured at the time of such investment). In addition, under Section 12(d)(1)(A) of the","page_number":154,"box":{"x":116,"y":802,"width":734,"height":12}},{"id":"838f7c1b-1d30-4394-a734-3e1a9635647f","block_type":"box","text":"Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":154,"box":{"x":117,"y":817,"width":698,"height":12}},{"id":"1bf8e664-6315-4649-b562-84be14aee2df","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such","page_number":154,"box":{"x":116,"y":832,"width":745,"height":12}},{"id":"0edc88fb-1533-485e-8898-df85e72ea050","block_type":"box","text":"investment company and a Fund may not invest in another investment company if such investment","page_number":154,"box":{"x":117,"y":847,"width":739,"height":12}},{"id":"5d9dbfb0-196e-418f-afca-e2dbab15de68","block_type":"box","text":"would cause more than 5% of the value of the Fund’s total assets to be invested in securities of such","page_number":154,"box":{"x":116,"y":862,"width":753,"height":10}},{"id":"3315c85b-6b8a-4018-a874-4390c0905b69","block_type":"box","text":"investment company. (These limits do not restrict a Feeder Fund from investing all of its assets in","page_number":154,"box":{"x":117,"y":877,"width":727,"height":12}},{"id":"44eeb9a5-4f63-4552-a0d3-66ee4f98e977","block_type":"box","text":"II-60","page_number":154,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a8f30fea-e755-4869-90d3-5bd76a90047e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":154,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2690ca0e-bc61-44c2-aa3a-f5e99e70cc5b","block_type":"box","text":"shares of its Master Portfolio.) In addition to the restrictions on investing in other investment companies","page_number":155,"box":{"x":116,"y":86,"width":771,"height":13}},{"id":"418589ad-e506-41fc-9ea4-172abb99c9c0","block_type":"box","text":"discussed above, under Section 12(d)(1)(C) of the Investment Company Act a Fund may not invest in","page_number":155,"box":{"x":116,"y":101,"width":759,"height":13}},{"id":"e05b6454-c97b-47ec-bfb6-eb3f89305d74","block_type":"box","text":"a registered closed-end investment company if such investment would cause the Fund and other","page_number":155,"box":{"x":116,"y":116,"width":724,"height":13}},{"id":"005f329e-33f8-4b53-a95d-1fb6e072de8c","block_type":"box","text":"BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock","page_number":155,"box":{"x":117,"y":131,"width":760,"height":13}},{"id":"4836ce63-5e21-4f78-a3f3-f9f83b911729","block_type":"box","text":"of such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company","page_number":155,"box":{"x":116,"y":146,"width":761,"height":13}},{"id":"1f3c2985-8ed8-4c77-bbf0-d07afffd4c0b","block_type":"box","text":"Act, these percentage limitations do not apply to investments in affiliated investment companies,","page_number":155,"box":{"x":116,"y":161,"width":719,"height":13}},{"id":"874b6a04-5c64-4f6c-ac69-c5333f68189c","block_type":"box","text":"including ETFs, subject to certain conditions. In addition, a Fund may be able to rely on certain rules","page_number":155,"box":{"x":117,"y":177,"width":747,"height":12}},{"id":"6553e563-8790-47e7-9d6b-ec92477bcd7b","block_type":"box","text":"under the Investment Company Act to invest in shares of money market funds or other investment","page_number":155,"box":{"x":117,"y":191,"width":733,"height":12}},{"id":"6c35679e-ce07-41e7-8849-d9c3e5003307","block_type":"box","text":"companies beyond the statutory limits noted above, but subject to certain conditions.","page_number":155,"box":{"x":116,"y":207,"width":633,"height":11}},{"id":"20a3ccd1-556c-4a57-829b-62124e0d12e0","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and","page_number":155,"box":{"x":116,"y":238,"width":723,"height":11}},{"id":"1724eb75-fbb8-423f-a757-7c1b64b323c3","block_type":"box","text":"selection risk.","page_number":155,"box":{"x":116,"y":253,"width":106,"height":9}},{"id":"e7b7181b-b0bc-423e-b634-48502b734844","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an","page_number":155,"box":{"x":116,"y":284,"width":740,"height":12}},{"id":"df0a78c8-f3a6-4bdf-a65b-f4a66afb4590","block_type":"box","text":"exchange may at times be acquired at market prices representing premiums to their NAVs. In addition,","page_number":155,"box":{"x":116,"y":300,"width":767,"height":12}},{"id":"bde03c57-2932-423b-987d-77b3a3a5fb7a","block_type":"box","text":"investment companies held by a Fund that trade on an exchange could trade at a discount from NAV,","page_number":155,"box":{"x":117,"y":315,"width":758,"height":12}},{"id":"3ea35ff3-261c-40cc-8a90-7e63e916bb27","block_type":"box","text":"and such discount could increase while the Fund holds the shares. If the market price of shares of an","page_number":155,"box":{"x":116,"y":330,"width":756,"height":12}},{"id":"ca33a91f-cdc1-4952-9f22-19babcd755bb","block_type":"box","text":"exchange-traded investment company decreases below the price that the Fund paid for the shares and","page_number":155,"box":{"x":116,"y":346,"width":771,"height":12}},{"id":"3e04fc9a-c27f-4336-968d-29cca38dcd1e","block_type":"box","text":"the Fund were to sell its shares of such investment company at a time when the market price is lower","page_number":155,"box":{"x":116,"y":361,"width":757,"height":13}},{"id":"1eaf9654-4bb0-426a-8f99-97e9178a7fd6","block_type":"box","text":"than the price at which it purchased the shares, the Fund would experience a loss.","page_number":155,"box":{"x":116,"y":377,"width":617,"height":12}},{"id":"837caebd-5a39-4d26-bf76-df0e5ebe04b7","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment","page_number":155,"box":{"x":117,"y":408,"width":698,"height":12}},{"id":"a47223d2-a24f-4704-ac3a-1c726fe59f40","block_type":"box","text":"companies, shareholders would bear both their proportionate share of expenses in the Fund and,","page_number":155,"box":{"x":116,"y":423,"width":727,"height":12}},{"id":"4702a688-6d71-4c08-860a-945cb25be473","block_type":"box","text":"indirectly, the expenses of such investment companies. Such expenses, both at the Fund level and","page_number":155,"box":{"x":117,"y":439,"width":739,"height":12}},{"id":"64ada669-785d-4a92-9c53-613101c365ec","block_type":"box","text":"acquired investment company level, would include management and advisory fees, unless such fees","page_number":155,"box":{"x":116,"y":454,"width":753,"height":13}},{"id":"ab6e39c9-ce71-4c5a-9472-8ed7de056c6c","block_type":"box","text":"have been waived by BlackRock. Please see the relevant Fund’s Prospectus to determine whether any","page_number":155,"box":{"x":117,"y":470,"width":769,"height":12}},{"id":"54518d01-98a3-483e-b712-f779437f5556","block_type":"box","text":"such management and advisory fees have been waived by BlackRock. Investments by a Fund in","page_number":155,"box":{"x":116,"y":485,"width":724,"height":13}},{"id":"7cd8fb32-5567-436a-a6f2-9cfe2a769a18","block_type":"box","text":"wholly owned investment entities created under the laws of certain countries will not be deemed an","page_number":155,"box":{"x":116,"y":501,"width":740,"height":12}},{"id":"10ccf27c-767d-403a-a8bd-1da6c35e680d","block_type":"box","text":"investment in other investment companies. Pursuant to guidance issued by the staff of the","page_number":155,"box":{"x":117,"y":516,"width":674,"height":13}},{"id":"ccf2fb16-1a07-481f-9bdf-467b1898c039","block_type":"box","text":"Commission, fees and expenses of money market funds used for the investment of cash collateral","page_number":155,"box":{"x":117,"y":532,"width":733,"height":12}},{"id":"9fbd4165-eb23-437d-8df0-3fef6898b0fb","block_type":"box","text":"received in connection with loans of Fund securities are not treated as “acquired fund fees and","page_number":155,"box":{"x":117,"y":547,"width":706,"height":12}},{"id":"77d8da44-cdf8-450e-8021-065dfb550797","block_type":"box","text":"expenses,” which are fees and expenses charged by other investment companies and pooled","page_number":155,"box":{"x":116,"y":563,"width":701,"height":12}},{"id":"65aadc8e-dddc-481a-9d48-603c9cd9ac30","block_type":"box","text":"investment vehicles in which a Fund invests a portion of its assets.","page_number":155,"box":{"x":117,"y":578,"width":498,"height":12}},{"id":"8f6343da-c0ac-4e53-9405-dcc33cf793cb","block_type":"box","text":"To the extent shares of a Fund are held by another f","page_number":155,"box":{"x":116,"y":609,"width":380,"height":13}},{"id":"35c87ced-2cd3-430e-8464-3494fffa95b4","block_type":"box","text":"und, the ability of the Fund it","page_number":155,"box":{"x":497,"y":609,"width":205,"height":13}},{"id":"5121e4eb-ca3f-4354-9cae-91b6826bd125","block_type":"box","text":"self to purchase other","page_number":155,"box":{"x":702,"y":609,"width":163,"height":12}},{"id":"56e09cbc-2b82-4567-b5b7-440ede539aed","block_type":"box","text":"funds may be limited. In addition, a fund-of-funds (","page_number":155,"box":{"x":116,"y":625,"width":365,"height":12}},{"id":"2c016987-a829-4f9c-b3a8-6782d26b1d7f","block_type":"box","text":"e.g.","page_number":155,"box":{"x":482,"y":628,"width":25,"height":9}},{"id":"8b0a8184-ea91-426a-9cac-a8012faee250","block_type":"box","text":", an investment company that seeks to meet its","page_number":155,"box":{"x":510,"y":625,"width":347,"height":12}},{"id":"b3a53b37-4583-43ce-a275-e206a18a3add","block_type":"box","text":"investment objective by investing significantly in","page_number":155,"box":{"x":117,"y":640,"width":350,"height":13}},{"id":"648becb9-d5d4-4c53-af39-3671328885a5","block_type":"box","text":"other investment companies)","page_number":155,"box":{"x":468,"y":640,"width":215,"height":13}},{"id":"d43a5fbf-f234-4307-8afb-bad86b0f3cbb","block_type":"box","text":"may be limited in its ability","page_number":155,"box":{"x":684,"y":641,"width":195,"height":12}},{"id":"97f23a9e-4d02-4500-8c15-6fffb5c60698","block_type":"box","text":"to purchase underlying funds if such underlying f","page_number":155,"box":{"x":116,"y":656,"width":353,"height":12}},{"id":"da34594e-180c-453f-b65f-1b4edeb4e689","block_type":"box","text":"unds themselves own shares of underlying funds.","page_number":155,"box":{"x":470,"y":656,"width":364,"height":12}},{"id":"e0664c95-b837-4e4e-8341-77fea950c62c","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate","page_number":155,"box":{"x":116,"y":687,"width":710,"height":12}},{"id":"c7dce432-9bc8-49eb-8e4c-6f06193e1077","block_type":"box","text":"indirect foreign investment in developing countries, and certain of such countries, such as Thailand,","page_number":155,"box":{"x":117,"y":702,"width":736,"height":13}},{"id":"e0b29733-fde1-4dc5-81b2-e99421c22545","block_type":"box","text":"South Korea, Chile and Brazil, have specifically authorized such funds. There also are investment","page_number":155,"box":{"x":116,"y":718,"width":725,"height":12}},{"id":"3be9f3bc-87a0-48e3-a28b-1fb9665e26ce","block_type":"box","text":"opportunities in certain of such countries in pooled vehicles that resemble open-end investment","page_number":155,"box":{"x":116,"y":734,"width":708,"height":11}},{"id":"5b9dab55-647b-43de-a663-27e32e935740","block_type":"box","text":"companies. The restrictions on investments in securities of investment companies set forth above may","page_number":155,"box":{"x":116,"y":749,"width":760,"height":12}},{"id":"501a6c91-2d4f-4d8d-9469-c62a0356e153","block_type":"box","text":"limit opportunities for a Fund to invest indirectly in certain developing countries.","page_number":155,"box":{"x":117,"y":765,"width":585,"height":12}},{"id":"77f52a41-ab78-44ce-a2b5-9f0cad8e4d7f","block_type":"box","text":"Issuer Insolvency Risk.","page_number":155,"box":{"x":116,"y":796,"width":185,"height":12}},{"id":"f18cf9c6-1cc9-486e-99d9-697f8020d8d6","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled","page_number":155,"box":{"x":307,"y":796,"width":532,"height":12}},{"id":"07633214-6820-4441-ade0-00cbe3534889","block_type":"box","text":"issuers involves a high degree of credit and market risk, which may be heightened during an economic","page_number":155,"box":{"x":117,"y":811,"width":761,"height":12}},{"id":"92ca8dbb-2817-4548-ba9d-00adffb6e96a","block_type":"box","text":"downturn or recession. Should an issuer of securities held by a Fund become involved in a bankruptcy","page_number":155,"box":{"x":116,"y":827,"width":765,"height":12}},{"id":"06525add-52a2-4512-9760-de8b88b38bcc","block_type":"box","text":"proceeding, reorganization or financial restructuring, a wide variety of considerations make an","page_number":155,"box":{"x":117,"y":842,"width":700,"height":12}},{"id":"2d756a3c-e23f-478a-94a5-9c3fd1be14e2","block_type":"box","text":"evaluation of the outcome of the Fund’s exposure to the issuer uncertain.","page_number":155,"box":{"x":116,"y":858,"width":548,"height":12}},{"id":"dd1d0648-3e98-4297-a690-2ec7c565b5d3","block_type":"box","text":"II-61","page_number":155,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"b9bb2abb-f0ae-493c-962f-6d6c0b924311","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":155,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"10ac3edf-339b-4b4f-9bd2-1914082e3918","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that","page_number":156,"box":{"x":117,"y":87,"width":769,"height":12}},{"id":"b7bf11f2-7d55-4835-bcb3-b67486a4d5b7","block_type":"box","text":"a Fund will receive any interest payments on the securities of the issuer. A Fund will be subject to","page_number":156,"box":{"x":116,"y":102,"width":728,"height":13}},{"id":"df6abc8d-6da5-4ba4-8892-54b646509fd5","block_type":"box","text":"significant uncertainty as to whether the reorganization or restructuring will be completed, and the Fund","page_number":156,"box":{"x":116,"y":118,"width":772,"height":12}},{"id":"f014f049-c345-46c2-a833-53973066e761","block_type":"box","text":"may bear certain extraordinary expenses to protect and recover its investment. A Fund will also be","page_number":156,"box":{"x":117,"y":134,"width":735,"height":12}},{"id":"1c36ccff-badb-447d-9fbd-0e0d24db34a8","block_type":"box","text":"subject to significant uncertainty as to when and in what manner and for what value the obligations","page_number":156,"box":{"x":116,"y":149,"width":737,"height":12}},{"id":"dc61847b-8eec-46dd-830f-8f3626892f96","block_type":"box","text":"evidenced by the securities of the issuer held by the Fund will eventually be satisfied.","page_number":156,"box":{"x":116,"y":165,"width":637,"height":12}},{"id":"7c0fc0e7-18e7-4e68-b91d-743f67d80a3f","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer","page_number":156,"box":{"x":117,"y":196,"width":741,"height":12}},{"id":"9b2e235f-1420-4c95-abd1-fa4df4ca03d0","block_type":"box","text":"held by the Fund, there can be no assurance that the securities or other assets received by a Fund in","page_number":156,"box":{"x":117,"y":211,"width":748,"height":12}},{"id":"baeec03b-76cc-4cd5-abed-9c82bb3afc0a","block_type":"box","text":"connection with such plan of reorganization or restructuring will not have a lower value or income","page_number":156,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"042bda17-ee3f-4259-9224-256479bcd256","block_type":"box","text":"potential than may have been anticipated or no value. A Fund may be unable to enforce its claims or","page_number":156,"box":{"x":117,"y":242,"width":742,"height":12}},{"id":"9e3ba181-a3d9-4f41-828d-3f697d6bd752","block_type":"box","text":"rights in any collateral or may have its claims or security interest in any collateral challenged, disallowed","page_number":156,"box":{"x":117,"y":258,"width":767,"height":12}},{"id":"3014e706-9720-4851-ae89-f87780ce715f","block_type":"box","text":"or subordinated to the claims or security interests of other creditors. In addition, amendments to the U.S.","page_number":156,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"d126f8f4-54d0-4cbd-af05-21e65d0da690","block_type":"box","text":"Bankruptcy Code or other relevant laws could alter the expected outcome or introduce greater","page_number":156,"box":{"x":117,"y":289,"width":695,"height":12}},{"id":"95c48b97-c4fb-4d8a-9ddc-50b32541f779","block_type":"box","text":"uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":156,"box":{"x":117,"y":304,"width":716,"height":12}},{"id":"b080c77f-d688-4a02-8263-fa77e2e4f189","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be","page_number":156,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"dce240ee-d5a8-4ab6-b00e-26f796dc8c75","block_type":"box","text":"re-characterized or a Fund may receive different securities or other assets, including equity securities.","page_number":156,"box":{"x":117,"y":335,"width":752,"height":12}},{"id":"5edb1774-8677-4828-a133-a846a63dc5a8","block_type":"box","text":"These types of equity securities include, but are not limited to: common stock; preferred stock (including","page_number":156,"box":{"x":116,"y":351,"width":768,"height":12}},{"id":"f1ab4f27-458a-46ac-9be3-4ba72a7ef42c","block_type":"box","text":"convertible preferred stock); bonds, notes and debentures convertible into common or preferred stock;","page_number":156,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"7b66a213-330e-41c1-a689-452f083ab216","block_type":"box","text":"stock purchase warrants and rights; equity interests in trusts; and depositary receipts. Equity securities","page_number":156,"box":{"x":116,"y":382,"width":759,"height":12}},{"id":"18602183-4950-491b-93d1-c8075df986b2","block_type":"box","text":"are subject to changes in value, and their value may be more volatile than those of other asset classes.","page_number":156,"box":{"x":116,"y":397,"width":764,"height":12}},{"id":"e9ea075b-85f2-4d94-bc15-daaf2ed8c5db","block_type":"box","text":"Holders of equity securities are subject to more risk than holders of debt securities because the status of","page_number":156,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"56515af5-4a6d-4202-ab15-2c189763fbf7","block_type":"box","text":"equity holders is subordinate to debtholders in an issuer’s capital structure. The value of equity","page_number":156,"box":{"x":116,"y":428,"width":701,"height":12}},{"id":"2308762a-4ab9-4cdb-9dc3-458463a0bbbe","block_type":"box","text":"securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":156,"box":{"x":116,"y":444,"width":721,"height":12}},{"id":"8ee255e1-e86e-4c2f-8b2b-8d4104f6b65e","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":156,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"83a29416-ac1c-4840-a467-cef8a7e25cd1","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding,","page_number":156,"box":{"x":116,"y":490,"width":681,"height":12}},{"id":"ada919df-11ef-43c7-8995-b60b23b1884c","block_type":"box","text":"reorganization or financial restructuring, the Fund may also be subject to additional risks associated with","page_number":156,"box":{"x":117,"y":506,"width":770,"height":12}},{"id":"70b8dda2-f31f-4428-b2ca-9bca37aff7cf","block_type":"box","text":"the assets received. One example of assets that a Fund could receive is an interest in one or more","page_number":156,"box":{"x":116,"y":521,"width":730,"height":12}},{"id":"4379c073-4d14-49ec-a4bf-bee132a089f0","block_type":"box","text":"loans made to the issuer as part of a workout agreed to by a consortium of lienholders and creditors of","page_number":156,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"a3539485-ff5c-49d6-b142-10388dd7b16b","block_type":"box","text":"the issuer. A Fund may receive such interests in loans to the extent permitted by the Investment","page_number":156,"box":{"x":116,"y":552,"width":710,"height":12}},{"id":"db83374c-6961-4602-904c-3712443cdf8f","block_type":"box","text":"Company Act.","page_number":156,"box":{"x":117,"y":568,"width":108,"height":12}},{"id":"5d3e5d2b-3ba0-4c02-a29b-e16c14f98b64","block_type":"box","text":"Securities or other assets received in a reorganization","page_number":156,"box":{"x":116,"y":599,"width":387,"height":12}},{"id":"e2f5a858-3e6b-4eb2-909b-14b77484cadd","block_type":"box","text":"or restructuring typically entail a higher degree of risk","page_number":156,"box":{"x":503,"y":599,"width":380,"height":12}},{"id":"8c504b37-d484-41d1-8067-d07885059030","block_type":"box","text":"than investments in securities of issuers that","page_number":156,"box":{"x":116,"y":614,"width":319,"height":10}},{"id":"18ec3f97-46db-49ff-949c-9637ec9076e3","block_type":"box","text":"have not undergone a reorganization or restructuring and may","page_number":156,"box":{"x":436,"y":614,"width":446,"height":12}},{"id":"e9a7afc0-0326-461c-8b6d-679e6e7056e3","block_type":"box","text":"be subject to heavy selling or downward pricing pre","page_number":156,"box":{"x":117,"y":630,"width":363,"height":12}},{"id":"35e90dfa-30fb-469f-bf05-e47286b3b45e","block_type":"box","text":"ssure after completion of the reorganization or","page_number":156,"box":{"x":481,"y":630,"width":332,"height":12}},{"id":"ddcc0d17-2c65-465f-bc0e-1224dec9a338","block_type":"box","text":"restructuring. The post-reorganization/restructuring assets","page_number":156,"box":{"x":117,"y":645,"width":411,"height":12}},{"id":"843bebd5-17e3-4b83-afa5-65bb4e4cfe50","block_type":"box","text":"and securities may also be illiquid and difficult to","page_number":156,"box":{"x":528,"y":645,"width":351,"height":12}},{"id":"e94e04c4-de3c-4b03-8ff2-1e05f276bf64","block_type":"box","text":"sell or value. If a Fund participates in negotiations with","page_number":156,"box":{"x":116,"y":661,"width":384,"height":12}},{"id":"c1f9bc04-fe57-408f-a22e-74bc7f55e353","block_type":"box","text":"respect to a plan of reorganization or restructuring","page_number":156,"box":{"x":506,"y":661,"width":353,"height":12}},{"id":"c718789f-78c5-433b-8eea-6eb9fefa7f93","block_type":"box","text":"with respect to securities of the issuer held by a","page_number":156,"box":{"x":116,"y":676,"width":336,"height":12}},{"id":"298d96b0-7432-478e-a07b-d134b39876ce","block_type":"box","text":"Fund, the Fund also may be restricted from disposing such","page_number":156,"box":{"x":458,"y":676,"width":417,"height":12}},{"id":"b90c5f6d-d8d2-4cdf-a98f-3decf42231a8","block_type":"box","text":"securities for a period of time. If a Fund becomes involved in such proceedings, the Fund may have more","page_number":156,"box":{"x":116,"y":692,"width":747,"height":12}},{"id":"27c43784-b2f3-4a58-a218-bb2f9f15f791","block_type":"box","text":"active participation in the affairs of the iss","page_number":156,"box":{"x":116,"y":707,"width":292,"height":12}},{"id":"96f30b79-e576-4239-b0ff-63daadbfdc3c","block_type":"box","text":"uer than that assumed generally by an investor.","page_number":156,"box":{"x":409,"y":707,"width":337,"height":12}},{"id":"686be9ca-382d-4b17-b0ac-ff76792fa38e","block_type":"box","text":"Lease Obligations.","page_number":156,"box":{"x":116,"y":738,"width":148,"height":12}},{"id":"781678d2-3f7e-4bd3-97ac-573e9c46f2a4","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase","page_number":156,"box":{"x":270,"y":738,"width":571,"height":12}},{"id":"cfa0209b-d5b7-47ed-904f-926ceb8dc489","block_type":"box","text":"contract, or a conditional sales contract (“lease obligations”). The Manager will monitor the credit","page_number":156,"box":{"x":116,"y":754,"width":716,"height":12}},{"id":"73a9d9ac-f31b-4aab-a397-5bd1e1962880","block_type":"box","text":"standing of each borrower and each entity providing credit support and/or a put option relating to lease","page_number":156,"box":{"x":116,"y":769,"width":761,"height":12}},{"id":"9bc36945-6158-483d-bed8-27f8838eb321","block_type":"box","text":"obligations.","page_number":156,"box":{"x":116,"y":785,"width":83,"height":12}},{"id":"0c50caa3-0c5b-4e8d-81ee-266e47074460","block_type":"box","text":"Life Settlement Investments.","page_number":156,"box":{"x":116,"y":816,"width":227,"height":9}},{"id":"39d7b564-e95b-4a03-9e9c-768581b70d26","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties,","page_number":156,"box":{"x":349,"y":816,"width":514,"height":12}},{"id":"bdf8416c-8257-4ed0-a23d-c8d44e833e91","block_type":"box","text":"such as the Fund, of existing life insurance contracts for more than their cash surrender value but less","page_number":156,"box":{"x":116,"y":831,"width":763,"height":12}},{"id":"1811f88d-d0a9-4179-b51e-9b1a0ea7d43e","block_type":"box","text":"than the net benefits to be paid under the policies. When a Fund acquires such a contract, it pays the","page_number":156,"box":{"x":116,"y":847,"width":756,"height":12}},{"id":"634f5c6e-0ace-4285-93a6-28d87cae36f4","block_type":"box","text":"policy premiums in return for the expected receipt of the net benefit as the beneficiary under the policy.","page_number":156,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"1f607929-cb93-4b56-9df0-e72cb8a0c863","block_type":"box","text":"Investments in these contracts involve certain risks, including liquidity risk, credit risk of the insurance","page_number":156,"box":{"x":117,"y":878,"width":756,"height":12}},{"id":"6e91571c-326d-458d-a7c4-5d388efbb0f7","block_type":"box","text":"II-62","page_number":156,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"4257541d-edc5-41b6-8dae-042c90d63439","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":156,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4221db55-0ac9-4200-ab8b-4956f621a33d","block_type":"box","text":"company, and inaccurate estimations of life expectancy of the insured individuals (viators). These","page_number":157,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"1703bb73-3d3b-4b05-b095-8f9914bdbd5b","block_type":"box","text":"policies may be considered illiquid because they are bought and sold in a secondary market through","page_number":157,"box":{"x":117,"y":103,"width":748,"height":12}},{"id":"0ca976a1-396c-448e-b50f-46968ee90a94","block_type":"box","text":"life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a policy, the Fund","page_number":157,"box":{"x":117,"y":118,"width":760,"height":12}},{"id":"582d574a-eaf4-4364-8b3b-34905e911b9c","block_type":"box","text":"may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":157,"box":{"x":117,"y":134,"width":708,"height":12}},{"id":"958bfaa5-3026-432f-8809-eecf1ab7f6d7","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund","page_number":157,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"578142d6-a105-474e-97e4-6c2251343bcf","block_type":"box","text":"may encounter losses on its investments if there is an inaccurate estimation of the life expectancies of","page_number":157,"box":{"x":117,"y":165,"width":761,"height":12}},{"id":"60699cd3-2574-475c-998b-2bf718a7719a","block_type":"box","text":"viators. A Fund intends to reduce this life expectancy risk by investing only in contracts where the life","page_number":157,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"fffd15c6-96b4-4c13-9a92-c18fa6b9b0e4","block_type":"box","text":"expectancy was reviewed by an experienced actuary, as well as by diversifying its investments across","page_number":157,"box":{"x":116,"y":196,"width":763,"height":12}},{"id":"01af4b61-e037-4e90-9b6e-9018e4b3659a","block_type":"box","text":"viators of varying ages and medical profiles. In addition, it is unclear whether the income from life","page_number":157,"box":{"x":116,"y":211,"width":725,"height":12}},{"id":"60e1b72f-9c5d-4214-a06b-782fb3a18c63","block_type":"box","text":"settlements is qualifying income for purposes of the IRS 90% gross income test a Fund must satisfy","page_number":157,"box":{"x":116,"y":227,"width":746,"height":12}},{"id":"628054f6-cde6-46b5-bd4d-651283c024f8","block_type":"box","text":"each year to qualify as a regulated investment company. A Fund intends to monitor its investments to","page_number":157,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"62618416-2094-4fbf-a339-9e29014b344b","block_type":"box","text":"ensure that the Fund remains qualified as a regulated investment company.","page_number":157,"box":{"x":116,"y":258,"width":567,"height":12}},{"id":"639e6541-5ab3-4435-93a1-b64f427276cc","block_type":"box","text":"Liquidity Risk Management.","page_number":157,"box":{"x":116,"y":289,"width":221,"height":12}},{"id":"33b08639-646c-4ec6-8baf-1dd372241a52","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”)","page_number":157,"box":{"x":338,"y":289,"width":517,"height":12}},{"id":"ce5140f3-8ff8-4d25-b903-5dacb6fd2139","block_type":"box","text":"requires open-end funds, such as the Funds, to adopt a liquidity risk management program and","page_number":157,"box":{"x":117,"y":304,"width":712,"height":12}},{"id":"0cea365b-0e11-4c39-b48d-3d7942da259b","block_type":"box","text":"enhance disclosures regarding fund liquidity. As required by the Liquidity Rule, the Funds have","page_number":157,"box":{"x":116,"y":320,"width":709,"height":12}},{"id":"bef68373-464e-4b24-8f88-88c1084ce8ba","block_type":"box","text":"implemented a liquidity risk management program (the “Liquidity Program”), and the Boards of","page_number":157,"box":{"x":117,"y":335,"width":704,"height":12}},{"id":"a2e0a7bd-4a6d-42be-859c-5e85a4459426","block_type":"box","text":"Directors of the Funds, including a majority of the independent Directors, have appointed the Manager","page_number":157,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"4391d6d8-88ab-4248-b5b0-160308f2dd70","block_type":"box","text":"as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity Program, the","page_number":157,"box":{"x":116,"y":366,"width":745,"height":12}},{"id":"20a1a8e0-0f96-419d-98ab-de8f2f183f4d","block_type":"box","text":"Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":157,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"40edf60a-0bb8-4299-beb1-4b0e56b26f19","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid","page_number":157,"box":{"x":117,"y":397,"width":750,"height":12}},{"id":"e4df3bc5-84ed-46f0-bc58-b57be72cd3ce","block_type":"box","text":"investment” or “illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund","page_number":157,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"7984af50-a130-4153-a53f-690ed484dc0c","block_type":"box","text":"could not meet requests to redeem shares issued by the Fund without significant dilution of the","page_number":157,"box":{"x":116,"y":428,"width":709,"height":12}},{"id":"66387708-8933-4cf0-b595-136e91fb89ba","block_type":"box","text":"remaining investors’ interests in the Fund. The liquidity of a Fund’s portfolio investments is determined","page_number":157,"box":{"x":117,"y":444,"width":762,"height":12}},{"id":"a7e25db9-5369-422e-be41-aa6d402d910f","block_type":"box","text":"based on relevant market, trading and investment-specific considerations under the Liquidity Program.","page_number":157,"box":{"x":117,"y":459,"width":764,"height":12}},{"id":"46a8c631-4ca5-49db-bb9b-e5af81e176c4","block_type":"box","text":"To the extent that an investment is deemed to be an illiquid investment or a less liquid investment, a","page_number":157,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"54f6f903-bebb-4e27-8a89-980edffdc2bf","block_type":"box","text":"Fund can expect to be exposed to greater liquidity risk.","page_number":157,"box":{"x":117,"y":490,"width":411,"height":12}},{"id":"5ca1d48a-952c-47dd-b67d-df4a579fa978","block_type":"box","text":"Master Limited Partnerships.","page_number":157,"box":{"x":116,"y":521,"width":230,"height":12}},{"id":"7fce7f46-f4b2-4665-8101-5a90c064dd50","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships","page_number":157,"box":{"x":347,"y":521,"width":538,"height":12}},{"id":"373042f4-0f7c-4916-8ed5-76fb229c1014","block_type":"box","text":"(“MLPs”) which are limited partnerships or limited liability companies taxable as partnerships. MLPs","page_number":157,"box":{"x":117,"y":537,"width":741,"height":12}},{"id":"dc2e0e94-6b9f-47cf-a6fe-2f67325756a7","block_type":"box","text":"may derive income and gains from the exploration, development, mining or production, processing,","page_number":157,"box":{"x":117,"y":552,"width":739,"height":12}},{"id":"692487a2-ad8f-455d-98ed-5a188d59a031","block_type":"box","text":"refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing","page_number":157,"box":{"x":117,"y":568,"width":758,"height":12}},{"id":"2fee33f4-253a-4f70-8ba5-1e0837d0b238","block_type":"box","text":"of any mineral or natural resources. MLPs generally have two classes of owners, the general partner","page_number":157,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"5c765725-fd57-4fc1-9fe5-c681aa411bd2","block_type":"box","text":"and limited partners. When investing in an MLP, a Fund intends to purchase publicly traded common","page_number":157,"box":{"x":116,"y":599,"width":753,"height":12}},{"id":"073f5c78-6d4d-486b-9b74-e5becac5f4f5","block_type":"box","text":"units issued to limited partners of the MLP. The general partner is typically owned by a major energy","page_number":157,"box":{"x":117,"y":614,"width":749,"height":12}},{"id":"df9610d4-1c08-43b8-a037-d0c1f8aa17f2","block_type":"box","text":"company, an investment fund, the direct management of the MLP or is an entity owned by one or more","page_number":157,"box":{"x":116,"y":630,"width":769,"height":12}},{"id":"5d9d7861-d591-4b0f-8d37-908dafa856c5","block_type":"box","text":"of such parties. The general partner may be structured as a private or publicly traded corporation or","page_number":157,"box":{"x":116,"y":645,"width":744,"height":12}},{"id":"0abf3a44-b427-4003-9e68-b6354dd47ae2","block_type":"box","text":"other entity. The general partner typically controls the operations and management of the MLP through","page_number":157,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"190ae185-5879-424b-968e-8bd218144494","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and","page_number":157,"box":{"x":116,"y":676,"width":683,"height":12}},{"id":"67bdaaab-e293-42e2-b4c7-2ef154100c79","block_type":"box","text":"subordinated units. Limited partners own the remainder of the partnership, through ownership of","page_number":157,"box":{"x":116,"y":692,"width":714,"height":12}},{"id":"fd8cca7d-a76e-46b3-bb44-240f17d49129","block_type":"box","text":"common units, and have a limited role in the partnership’s operations and management.","page_number":157,"box":{"x":116,"y":707,"width":652,"height":12}},{"id":"d9c8f825-23f8-42ed-9087-1284ba980f2c","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to","page_number":157,"box":{"x":117,"y":738,"width":764,"height":12}},{"id":"ec164871-2965-47ad-b205-8636a35f3f99","block_type":"box","text":"receive quarterly cash distributions up to an established minimum amount (“minimum quarterly","page_number":157,"box":{"x":117,"y":754,"width":701,"height":12}},{"id":"6ed811ea-4fc5-4103-a198-4853c394720d","block_type":"box","text":"distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions","page_number":157,"box":{"x":116,"y":769,"width":762,"height":12}},{"id":"68b8cc41-2bc0-44b4-b6ca-3b969b33ec8e","block_type":"box","text":"to the extent the MQD is not paid. Once common and general partner interests have been paid,","page_number":157,"box":{"x":116,"y":785,"width":708,"height":12}},{"id":"fa4d8f6f-f60c-44b3-933c-c79f256fe6de","block_type":"box","text":"subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue","page_number":157,"box":{"x":116,"y":800,"width":750,"height":12}},{"id":"43ccfd08-c3d9-4263-931f-33f652e45470","block_type":"box","text":"arrearages. Distributable cash in excess of the MQD paid to both common and subordinated units is","page_number":157,"box":{"x":116,"y":816,"width":743,"height":12}},{"id":"47224e9a-01b9-4a66-9681-dcdd361793f6","block_type":"box","text":"distributed to both common and subordinated units generally on a pro rata basis. The general partner","page_number":157,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"0015442f-d3ab-47ae-b02e-b058646990d6","block_type":"box","text":"is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":157,"box":{"x":117,"y":847,"width":712,"height":12}},{"id":"0c3983bf-ccb3-41cc-b829-788a892e1bb2","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the","page_number":157,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"67b9d873-fd0e-4f7d-a8e6-cbf5bd7668a0","block_type":"box","text":"general partner increases cash distributions to the limited partners, the general partner receives an","page_number":157,"box":{"x":116,"y":878,"width":739,"height":12}},{"id":"cd3f42f0-f2ee-48e6-90eb-01446a425cce","block_type":"box","text":"II-63","page_number":157,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a5026611-d0ba-4e90-9040-0a4c26947c57","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":157,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3dd17b77-5cc5-4fcb-afb8-dea962910680","block_type":"box","text":"increasingly higher percentage of the incremental cash distributions. A common arrangement provides","page_number":158,"box":{"x":117,"y":87,"width":764,"height":12}},{"id":"2d501210-aa67-45ae-80a9-97b9ad7e7a8e","block_type":"box","text":"that the general partner can reach a tier where it receives 50% of every incremental dollar paid to","page_number":158,"box":{"x":116,"y":102,"width":727,"height":13}},{"id":"195050b4-b766-4e7e-a7a0-0bba28e0d563","block_type":"box","text":"common and subordinated unit holders. These incentive distributions encourage the general partner to","page_number":158,"box":{"x":116,"y":118,"width":767,"height":12}},{"id":"bed68d3d-7fd9-42ac-b2c3-87a268fa3a7d","block_type":"box","text":"streamline costs, increase capital expenditures and acquire assets in order to increase the","page_number":158,"box":{"x":116,"y":134,"width":676,"height":11}},{"id":"7e92e880-261b-491d-8d7a-dc6e5b534630","block_type":"box","text":"partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers. Such","page_number":158,"box":{"x":117,"y":149,"width":736,"height":12}},{"id":"b7247d5e-1ae2-4fd9-9acf-e3931e79dae5","block_type":"box","text":"results benefit all security holders of the MLP.","page_number":158,"box":{"x":117,"y":165,"width":343,"height":12}},{"id":"151c173d-5412-441d-9b4a-4345a27be25b","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and","page_number":158,"box":{"x":117,"y":196,"width":748,"height":11}},{"id":"9c470a7a-5841-4387-88e8-817120f27438","block_type":"box","text":"traded on U.S. securities exchanges, with their value fluctuating predominantly based on prevailing","page_number":158,"box":{"x":116,"y":211,"width":739,"height":12}},{"id":"3db80ce1-24a7-43ae-a400-77645ecea448","block_type":"box","text":"market conditions and the success of the MLP. Certain Funds intend to purchase common units in","page_number":158,"box":{"x":117,"y":227,"width":733,"height":11}},{"id":"74c73d7a-892f-4da4-9a50-3c22c9966ee3","block_type":"box","text":"market transactions. Unlike owners of common stock of a corporation, owners of common units have","page_number":158,"box":{"x":117,"y":242,"width":752,"height":12}},{"id":"26eb294c-fdf7-4f28-9957-2c24d8965b22","block_type":"box","text":"limited voting rights and have no ability to annually elect directors. In the event of liquidation, common","page_number":158,"box":{"x":117,"y":258,"width":758,"height":12}},{"id":"95829783-8713-4e52-94ae-376aabf4e166","block_type":"box","text":"units have preference over subordinated units, but not over debt or preferred units, to the remaining","page_number":158,"box":{"x":117,"y":273,"width":744,"height":12}},{"id":"d2ef0937-2bf8-430f-abc1-35f4ec353b02","block_type":"box","text":"assets of the MLP.","page_number":158,"box":{"x":116,"y":289,"width":144,"height":9}},{"id":"1e550459-8661-4dd1-97bb-e0a06e9fb9ea","block_type":"box","text":"Merger Transaction Risk.","page_number":158,"box":{"x":116,"y":320,"width":200,"height":12}},{"id":"dc95ef85-085f-4d92-a0b9-550cc9ebeea9","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger","page_number":158,"box":{"x":317,"y":320,"width":531,"height":12}},{"id":"e24b5cea-65dc-41d1-8761-7499f928024f","block_type":"box","text":"transaction prior to the consummation of such transaction. In that circumstance, a Fund would expect","page_number":158,"box":{"x":116,"y":335,"width":757,"height":12}},{"id":"80764b89-12c5-4c5c-8ca7-a6896bd0d03f","block_type":"box","text":"to receive an amount (whether in cash, stock of the acquiring company or a combination of both) in","page_number":158,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"e3538754-d2c8-4b7b-9355-63f71b76b6da","block_type":"box","text":"excess of the purchase price paid by the Fund for the target company’s stock. However, a Fund is","page_number":158,"box":{"x":116,"y":366,"width":733,"height":12}},{"id":"c1a302ee-bd22-4039-9499-cd49565b72ec","block_type":"box","text":"subject to the risk that the merger transaction may be canceled, delayed or restructured, in which case","page_number":158,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"7184548c-f82d-4176-922f-ee2102a6d1d7","block_type":"box","text":"a Fund’s holding of the target company’s stock may not result in any profit for the Fund and may lose","page_number":158,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"4270e1fa-6b13-41c0-8208-c4aa3a3b30ea","block_type":"box","text":"significant value.","page_number":158,"box":{"x":116,"y":413,"width":129,"height":12}},{"id":"6dd609b8-8263-412b-871f-e70ddc695d5d","block_type":"box","text":"Money Market Obligations of Domestic Banks,","page_number":158,"box":{"x":116,"y":444,"width":355,"height":12}},{"id":"99f0ea7b-5020-4289-8270-8a43d889a704","block_type":"box","text":"Foreign Banks and Foreign Branches of U.S. Banks.","page_number":158,"box":{"x":472,"y":444,"width":404,"height":12}},{"id":"d253e0a5-d4a4-4df1-8eee-f015f3293e54","block_type":"box","text":"Certain Funds may purchase bank obligations, such as","page_number":158,"box":{"x":117,"y":459,"width":396,"height":12}},{"id":"9d0b4c01-264c-4d66-bf7b-b19b410fa552","block_type":"box","text":"certificates of deposit, notes, bankers’ acceptances","page_number":158,"box":{"x":513,"y":459,"width":367,"height":12}},{"id":"1838b9a0-c2b9-4454-a48f-e05c69125889","block_type":"box","text":"and time deposits, including instruments issued or suppo","page_number":158,"box":{"x":116,"y":475,"width":403,"height":12}},{"id":"1b6d82fe-3db3-4578-af3d-3e051b8dfb66","block_type":"box","text":"rted by the credit of U.S. or foreign banks or","page_number":158,"box":{"x":521,"y":475,"width":315,"height":12}},{"id":"e1286232-a244-4b7e-b300-324e05513722","block_type":"box","text":"savings institutions having total assets at the time","page_number":158,"box":{"x":116,"y":490,"width":356,"height":12}},{"id":"2b232d93-d917-47b1-a710-ddc87e730e1d","block_type":"box","text":"of purchase in excess of $1 billion. These obligations may","page_number":158,"box":{"x":472,"y":489,"width":415,"height":13}},{"id":"dcb83154-4e56-44e0-b026-7f544155c4a6","block_type":"box","text":"be general obligations of the parent bank","page_number":158,"box":{"x":117,"y":506,"width":290,"height":12}},{"id":"aeff4fe3-0bba-4fdb-a0d2-ae8e1f0e5a15","block_type":"box","text":"k or may be limited to the issuing branch or subsidiary by the terms","page_number":158,"box":{"x":407,"y":506,"width":473,"height":12}},{"id":"f17302a6-2157-4efb-ab06-c2a9c3f035c9","block_type":"box","text":"of a specific obligation or by gov","page_number":158,"box":{"x":116,"y":521,"width":228,"height":12}},{"id":"9c8d796c-a42c-4be6-ba80-294d8dc2aca6","block_type":"box","text":"ernment regulation. The assets of","page_number":158,"box":{"x":344,"y":521,"width":244,"height":12}},{"id":"0006e585-0135-43f8-b3c2-a3a12ac81ae1","block_type":"box","text":"a bank or savings institution will be","page_number":158,"box":{"x":588,"y":521,"width":251,"height":12}},{"id":"53a8ff75-a1d7-4daf-8fbd-36c991a18629","block_type":"box","text":"deemed to include the assets of its domestic and fore","page_number":158,"box":{"x":116,"y":537,"width":380,"height":9}},{"id":"783423fc-0205-49d9-a443-f3513e06777e","block_type":"box","text":"ign branches for purposes of a Fund’s investment","page_number":158,"box":{"x":497,"y":537,"width":356,"height":12}},{"id":"78bcbfc0-7199-43df-8599-ec900299a629","block_type":"box","text":"policies. Investments in short-term bank obligations","page_number":158,"box":{"x":117,"y":552,"width":368,"height":12}},{"id":"1f69cb9e-fd8e-4411-ad43-19628a41bbd6","block_type":"box","text":"may include obligations of foreign banks and domestic","page_number":158,"box":{"x":485,"y":552,"width":390,"height":12}},{"id":"ad13c50d-b344-4734-a285-8e5222d1b36b","block_type":"box","text":"branches of foreign banks, and also foreign branches of domestic banks.","page_number":158,"box":{"x":117,"y":568,"width":521,"height":12}},{"id":"119205ad-9acc-4931-ae2c-4dba50c53198","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of","page_number":158,"box":{"x":116,"y":599,"width":727,"height":12}},{"id":"bab4a07b-944c-4f00-a6a7-1f6d819084ee","block_type":"box","text":"domestic or foreign corporations and banks, and may acquire commercial obligations issued by","page_number":158,"box":{"x":116,"y":614,"width":713,"height":12}},{"id":"4d3680af-a41d-4bd6-bf80-0dd3b925c41b","block_type":"box","text":"Canadian corporations and Canadian counterparts of U.S. corporations, as well as Europaper, which is","page_number":158,"box":{"x":117,"y":630,"width":769,"height":12}},{"id":"60951454-577f-4ef0-9494-51810e5f654c","block_type":"box","text":"U.S. dollar-denominated commercial paper of a foreign issuer.","page_number":158,"box":{"x":117,"y":645,"width":466,"height":12}},{"id":"f17f2311-628d-4714-94d2-5793117f4af1","block_type":"box","text":"Money Market Securities.","page_number":158,"box":{"x":116,"y":676,"width":201,"height":12}},{"id":"4ce7dabf-e1f4-4e5b-b9cc-5569d3fe3ec1","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S.","page_number":158,"box":{"x":323,"y":676,"width":553,"height":12}},{"id":"a2b59789-c988-4c7b-abd2-4dfb6a678dde","block_type":"box","text":"dollar-denominated instruments, such as government, bank, commercial and other obligations that are","page_number":158,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"735a63a5-c833-488c-9a29-52930151786f","block_type":"box","text":"available in the money markets. In particular, the Funds may invest in:","page_number":158,"box":{"x":116,"y":707,"width":519,"height":12}},{"id":"6b83b4f7-ac36-4d1b-bbbf-932afddd7a30","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks","page_number":158,"box":{"x":150,"y":738,"width":729,"height":12}},{"id":"f65ebada-bb76-415d-94c7-14429351d867","block_type":"box","text":"or savings institutions with total assets in excess of $1 billion (including obligations of foreign","page_number":158,"box":{"x":184,"y":753,"width":684,"height":13}},{"id":"18c9b261-4897-4fd5-8198-b196ea6e9454","block_type":"box","text":"branches of such banks);","page_number":158,"box":{"x":184,"y":769,"width":186,"height":12}},{"id":"ab3bc67b-e31f-42e2-bae8-b203d65d1869","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign","page_number":158,"box":{"x":150,"y":792,"width":728,"height":13}},{"id":"04c44bf1-cd3a-4320-87e0-d7a5aa1b1364","block_type":"box","text":"corporations and other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2","page_number":158,"box":{"x":184,"y":808,"width":686,"height":12}},{"id":"a439c279-3920-441e-9eab-b3e0b737d0e2","block_type":"box","text":"or higher by Moody’s or F-2 or higher by Fitch, as well as high quality corporate bonds rated","page_number":158,"box":{"x":184,"y":824,"width":681,"height":12}},{"id":"dea4cbc4-9eb1-486d-bee7-2999eb05d7dd","block_type":"box","text":"(at the time of purchase) A or higher by those rating agencies;","page_number":158,"box":{"x":184,"y":839,"width":465,"height":12}},{"id":"6751950f-5070-48bf-ada7-b043aeb31b70","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments","page_number":158,"box":{"x":150,"y":862,"width":726,"height":12}},{"id":"8d637248-b659-49bc-a672-f8714daa36de","block_type":"box","text":"described in (b) above as determined by the Fund’s Manager;","page_number":158,"box":{"x":184,"y":878,"width":463,"height":12}},{"id":"16be842a-375a-4722-855c-60cd2fb2115e","block_type":"box","text":"II-64","page_number":158,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9cbdfa4b-fe06-4244-9cc1-1f445a8d54f9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":158,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ddff637d-c39e-4752-ac62-44407625da50","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment","page_number":159,"box":{"x":150,"y":87,"width":730,"height":12}},{"id":"a15f3132-325e-42e6-abed-69bb18e8f234","block_type":"box","text":"purchase obligations and credit card receivables);","page_number":159,"box":{"x":184,"y":102,"width":374,"height":13}},{"id":"7978cb58-6e8d-496f-837e-dd79f4cd8350","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its","page_number":159,"box":{"x":150,"y":126,"width":722,"height":12}},{"id":"196cf205-0baf-47ff-96b5-9bd402c0650e","block_type":"box","text":"agencies or authorities and related custodial receipts;","page_number":159,"box":{"x":184,"y":141,"width":401,"height":12}},{"id":"9f612e0f-196e-4ea7-bf59-400ba1f115b9","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political","page_number":159,"box":{"x":150,"y":165,"width":719,"height":12}},{"id":"8004902f-8b6a-487b-996a-0da933172230","block_type":"box","text":"subdivisions, agencies or authorities;","page_number":159,"box":{"x":184,"y":180,"width":279,"height":12}},{"id":"4b4b8927-304b-4810-a5ad-4f01c7e7a7dc","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":159,"box":{"x":150,"y":203,"width":561,"height":12}},{"id":"3c8352a8-703e-4802-b3e4-c9ca95a3b651","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":159,"box":{"x":150,"y":227,"width":560,"height":12}},{"id":"ba2e1ebb-c1f4-4298-bc8f-f4c2175e5e3f","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":159,"box":{"x":150,"y":250,"width":469,"height":12}},{"id":"ed011a33-5ef5-44ce-88e6-18b468c9fd83","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S.","page_number":159,"box":{"x":150,"y":273,"width":736,"height":12}},{"id":"dd0c240b-c903-412f-b94a-58efc24e83b2","block_type":"box","text":"Government or one of its agencies or authorities or which otherwise depend directly or","page_number":159,"box":{"x":184,"y":289,"width":646,"height":12}},{"id":"e7717b0c-9ade-402e-ab52-a94972b0c2b5","block_type":"box","text":"indirectly on the credit of the United States;","page_number":159,"box":{"x":184,"y":304,"width":325,"height":12}},{"id":"16b6e942-8fa6-4b1d-91ac-d77a69b23101","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or","page_number":159,"box":{"x":150,"y":327,"width":730,"height":12}},{"id":"84ced47b-a4ea-4400-a862-96750b8077e0","block_type":"box","text":"higher by Moody’s, SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":159,"box":{"x":184,"y":343,"width":563,"height":12}},{"id":"8f95160e-194a-4112-8154-eb676294165b","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by","page_number":159,"box":{"x":150,"y":366,"width":675,"height":12}},{"id":"d298eabf-706f-46c7-a344-69d84aee5cc1","block_type":"box","text":"Moody’s, A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":159,"box":{"x":184,"y":382,"width":428,"height":12}},{"id":"7acda8e4-93f2-4b50-ba6d-835ad2b3cf26","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":159,"box":{"x":150,"y":405,"width":488,"height":12}},{"id":"836a5d44-41d6-4bf1-ac7a-a8e0faf4a923","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments","page_number":159,"box":{"x":150,"y":428,"width":713,"height":12}},{"id":"f1500782-3e30-441e-940f-f5589a8b0da4","block_type":"box","text":"described above, as determined by the Fund’s Manager under guidelines established by the","page_number":159,"box":{"x":184,"y":444,"width":688,"height":12}},{"id":"d144d4fa-7f99-4485-934e-5a0132bcf843","block_type":"box","text":"Board; and","page_number":159,"box":{"x":184,"y":459,"width":86,"height":11}},{"id":"9556a89f-0f67-48e0-8b43-b839677ece74","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S.","page_number":159,"box":{"x":150,"y":482,"width":693,"height":12}},{"id":"e59abb1a-f944-4142-846e-fc61048ec161","block_type":"box","text":"Government or an agency or instrumentality thereof or which otherwise depend directly or","page_number":159,"box":{"x":184,"y":498,"width":671,"height":12}},{"id":"170d1406-7c2a-4370-be87-bc5e8804f11d","block_type":"box","text":"indirectly on the credit of the United States.","page_number":159,"box":{"x":184,"y":513,"width":325,"height":12}},{"id":"7c0a7d9d-6591-408f-aa43-4ad3c7f35d54","block_type":"box","text":"Mortgage-Related Securities.","page_number":159,"box":{"x":116,"y":544,"width":236,"height":12}},{"id":"5f718026-d35c-4e11-ab04-7836cecaae70","block_type":"box","text":"Mortgage-Backed Securities.","page_number":159,"box":{"x":116,"y":568,"width":214,"height":12}},{"id":"fee39883-cffc-4835-9248-184204635b79","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in","page_number":159,"box":{"x":332,"y":568,"width":544,"height":12}},{"id":"713ba18d-fef3-4e5f-834c-922cc473ded6","block_type":"box","text":"which payments of both principal and interest on the securities are generally made monthly, in effect","page_number":159,"box":{"x":116,"y":583,"width":749,"height":12}},{"id":"d845ebc9-0987-4846-a0d1-e3962b7eb9a1","block_type":"box","text":"“passing through” monthly payments made by borrowers on the residential or commercial mortgage","page_number":159,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"b38121a5-dfec-40b2-aa7e-118bb0d9491c","block_type":"box","text":"loans that underlie the securities (net of any fees paid to the issuer or guarantor of the securities).","page_number":159,"box":{"x":117,"y":614,"width":728,"height":12}},{"id":"b5fd8f0e-fc16-4be4-8dea-107e75743d59","block_type":"box","text":"Mortgage-backed securities differ from other forms of debt securities, which normally provide for","page_number":159,"box":{"x":117,"y":630,"width":718,"height":12}},{"id":"e54fcb98-5335-401b-a1ff-0fa3ef439d44","block_type":"box","text":"periodic payment of interest in fixed amounts with principal payments at maturity or specified call","page_number":159,"box":{"x":117,"y":645,"width":721,"height":12}},{"id":"17d7a334-cac4-42ac-b7ac-23fea8f48750","block_type":"box","text":"dates.","page_number":159,"box":{"x":116,"y":661,"width":44,"height":9}},{"id":"c61df55b-029c-4361-941f-832997139d6d","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate","page_number":159,"box":{"x":117,"y":692,"width":731,"height":12}},{"id":"7933b597-470d-47d8-bcde-e1f1b9b2b74e","block_type":"box","text":"securities; that is, they may lose value if the value of the underlying real estate to which a pool of","page_number":159,"box":{"x":116,"y":707,"width":718,"height":12}},{"id":"cd6baac0-50f0-4cea-a3e3-872761e65803","block_type":"box","text":"mortgages relates declines. In addition, investments in mortgage-backed securities involve certain","page_number":159,"box":{"x":117,"y":723,"width":726,"height":12}},{"id":"b40890d1-029c-42dc-840a-05f64125012f","block_type":"box","text":"specific risks. These risks include the failure of a party to meet its commitments under the related","page_number":159,"box":{"x":116,"y":738,"width":720,"height":12}},{"id":"7b4635de-dc90-4e3a-9b57-ad7ba5d9e7d5","block_type":"box","text":"operative documents, adverse interest rate changes and the effects of prepayments on mortgage cash","page_number":159,"box":{"x":116,"y":754,"width":762,"height":12}},{"id":"7969238f-0db3-49a9-b421-1c78585f8f5f","block_type":"box","text":"flows. Mortgage-backed securities are “pass-through” securities, meaning that principal and interest","page_number":159,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"0f4306f6-1a03-4359-a945-78439276af22","block_type":"box","text":"payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":159,"box":{"x":117,"y":785,"width":687,"height":12}},{"id":"ef54a37d-82be-4c92-be4d-7a4124108956","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly","page_number":159,"box":{"x":116,"y":800,"width":720,"height":12}},{"id":"e9a5358e-d66e-462a-a81e-ab21d7df9d92","block_type":"box","text":"sensitive to changes in prevailing interest rates, and, like other fixed income investments, the ability of","page_number":159,"box":{"x":116,"y":816,"width":757,"height":12}},{"id":"a3bc5bc4-5c0f-4447-80a7-b9d366fcc058","block_type":"box","text":"a Fund to utilize these instruments successfully may depend in part upon the ability of the Manager to","page_number":159,"box":{"x":116,"y":831,"width":760,"height":12}},{"id":"293b12fa-ec15-4ffc-84e9-83843091ad3b","block_type":"box","text":"forecast interest rates and other economic factors correctly. The value of mortgage-backed securities,","page_number":159,"box":{"x":116,"y":847,"width":761,"height":12}},{"id":"f0ae4fbd-70f1-4ae0-af17-6db7daf3396f","block_type":"box","text":"like that of traditional fixed-income securities, typically increases when interest rates fall and decreases","page_number":159,"box":{"x":117,"y":862,"width":768,"height":12}},{"id":"3f49f6d1-ef5b-497c-91ec-99ceb7d0c2ea","block_type":"box","text":"when interest rates rise. However, mortgage-backed securities differ from traditional fixed-income","page_number":159,"box":{"x":116,"y":878,"width":729,"height":12}},{"id":"586c2483-4cf9-43fa-8b5e-175f9a91b6ab","block_type":"box","text":"II-65","page_number":159,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a2456d15-2380-48b5-9959-e5a209c31592","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":159,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c293a3de-4438-46b8-a083-117f52b8ba07","block_type":"box","text":"securities because of their potential for prepayment without penalty. The price paid by a Fund for its","page_number":160,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"eb51a452-3bdf-4b78-970e-b50e8c73d83d","block_type":"box","text":"mortgage-backed securities, the yield the Fund expects to receive from such securities and the","page_number":160,"box":{"x":117,"y":102,"width":709,"height":13}},{"id":"26f2f9a1-cc1a-46aa-861d-527c63b3eae4","block_type":"box","text":"weighted average life of the securities are based on a number of factors, including the anticipated rate","page_number":160,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"4dcc7ee1-207d-4ee4-9b73-72db0b40154e","block_type":"box","text":"of prepayment of the underlying mortgages. In a period of declining interest rates, borrowers may","page_number":160,"box":{"x":116,"y":134,"width":727,"height":12}},{"id":"4f3ccc89-182c-46b5-8bb9-b3d5f8264c14","block_type":"box","text":"prepay the underlying mortgages more quickly than anticipated, thereby reducing the yield to maturity","page_number":160,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"620edc35-7525-46cc-a237-1d8984d93f67","block_type":"box","text":"and the average life of the mortgage-backed securities. Moreover, when a Fund reinvests the proceeds","page_number":160,"box":{"x":116,"y":165,"width":772,"height":12}},{"id":"2c4f180c-3384-48af-b908-e7e1ffe4a4a0","block_type":"box","text":"of a prepayment in these circumstances, it will likely receive a rate of interest that is lower than the rate","page_number":160,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"c032890a-1a30-4263-86c5-17e45fc7e1b7","block_type":"box","text":"on the security that was prepaid.","page_number":160,"box":{"x":116,"y":196,"width":247,"height":12}},{"id":"666d3577-ce3d-4fab-8223-642669018eac","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures","page_number":160,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"4e584edd-8a41-458b-90f5-acff276432ed","block_type":"box","text":"and principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such","page_number":160,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"3bfe8645-be1b-41f7-b863-b82e84ed8155","block_type":"box","text":"securities at a discount, both scheduled payments of principal and unscheduled prepayments will","page_number":160,"box":{"x":116,"y":258,"width":726,"height":12}},{"id":"b520b241-54fe-4883-beba-25598537b3f4","block_type":"box","text":"increase current and total returns and will accelerate the recognition of income, which, when distributed","page_number":160,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"6da74678-3be3-4e23-8672-2b551b6b6fb7","block_type":"box","text":"to shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of","page_number":160,"box":{"x":116,"y":289,"width":762,"height":12}},{"id":"3d56bcc0-54c4-41dc-804b-70e9580e78ba","block_type":"box","text":"the underlying mortgages may occur at a slower than expected rate, creating maturity extension risk.","page_number":160,"box":{"x":116,"y":304,"width":753,"height":12}},{"id":"7eed2174-1bd6-4fb8-8c16-02e70f72c015","block_type":"box","text":"This particular risk may effectively change a security that was considered short- or intermediate-term at","page_number":160,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"70309520-4bfe-4bdb-9374-260f33ea2db5","block_type":"box","text":"the time of purchase into a long-term security. Since the value of long-term securities generally","page_number":160,"box":{"x":116,"y":335,"width":709,"height":12}},{"id":"720961b8-e706-4cb6-8174-bb4875e7d78e","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than that of shorter-term securities,","page_number":160,"box":{"x":116,"y":351,"width":736,"height":12}},{"id":"76e27ec2-6991-4e1c-8c0a-ea63068fc505","block_type":"box","text":"maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":160,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"a7088cc2-8c2c-4e9d-9800-c9b8cf7ad5a5","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities","page_number":160,"box":{"x":117,"y":382,"width":740,"height":12}},{"id":"0dbf1495-a644-4bf5-9971-8cf550a9cb15","block_type":"box","text":"notwithstanding any direct or indirect governmental or agency guarantee.","page_number":160,"box":{"x":117,"y":397,"width":547,"height":12}},{"id":"921b4e58-6e74-4c26-bee7-00b55ab7118a","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S.","page_number":160,"box":{"x":116,"y":428,"width":725,"height":12}},{"id":"50da35fc-1463-4fcf-9b29-590bffbf5437","block_type":"box","text":"Government or one of its agencies or instrumentalities, such as the Government National Mortgage","page_number":160,"box":{"x":117,"y":444,"width":742,"height":12}},{"id":"2aabffe5-f973-4724-bec6-05b703a10953","block_type":"box","text":"Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”) and the Federal","page_number":160,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"73345110-c34a-4720-849a-79f497b28a14","block_type":"box","text":"Home Loan Mortgage Corporation (“Freddie Mac”); (2) those issued by private issuers that represent","page_number":160,"box":{"x":117,"y":475,"width":753,"height":12}},{"id":"3614962a-ff0e-4a25-9f3d-c5514a26c047","block_type":"box","text":"an interest in or are collateralized by pass-through securities issued or guaranteed by the U.S.","page_number":160,"box":{"x":116,"y":490,"width":704,"height":12}},{"id":"cf3d6941-d3e1-4464-9663-fed954213f36","block_type":"box","text":"Government or one of its agencies or instrumentalities; and (3) those issued by private issuers that","page_number":160,"box":{"x":117,"y":506,"width":737,"height":12}},{"id":"2dbf1776-3670-4a21-b502-da5e227f97af","block_type":"box","text":"represent an interest in or are collateralized by whole mortgage loans or pass-through securities","page_number":160,"box":{"x":117,"y":521,"width":717,"height":12}},{"id":"a36fabaa-8390-411d-8098-54e775f9d5c8","block_type":"box","text":"without a government guarantee but that usually have some form of private credit enhancement.","page_number":160,"box":{"x":116,"y":537,"width":720,"height":12}},{"id":"3efde68c-98b8-49da-9bb8-9f3ed4ae459c","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and","page_number":160,"box":{"x":117,"y":568,"width":736,"height":12}},{"id":"d19054ea-da25-4ccc-b11a-1dd98417a17e","block_type":"box","text":"Urban Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S.","page_number":160,"box":{"x":117,"y":583,"width":741,"height":12}},{"id":"77ff569a-9adb-439d-8a23-959e68bb8f7a","block_type":"box","text":"Government, the timely payment of principal and interest on securities issued by the institutions","page_number":160,"box":{"x":117,"y":599,"width":713,"height":12}},{"id":"20db29f8-0e70-4a24-9df6-e353fdec59de","block_type":"box","text":"approved by Ginnie Mae (such as savings and loan institutions, commercial banks and mortgage","page_number":160,"box":{"x":116,"y":614,"width":725,"height":12}},{"id":"030eb6f6-a2f9-470f-8498-0226d7b3482f","block_type":"box","text":"banks), and backed by pools of Federal Housing Administration (“FHA”)-insured or Veterans’","page_number":160,"box":{"x":117,"y":630,"width":693,"height":12}},{"id":"f20653a6-5215-4d30-a03c-4c26d0db8f77","block_type":"box","text":"Administration (“VA”)-guaranteed mortgages. Pass-through certificates guaranteed by Ginnie Mae","page_number":160,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"62cfa1a5-fc20-4381-97fa-c5d6351aa27c","block_type":"box","text":"(such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely payment of","page_number":160,"box":{"x":117,"y":661,"width":707,"height":12}},{"id":"9fee0b59-8d43-480e-975b-63415887c320","block_type":"box","text":"principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the","page_number":160,"box":{"x":117,"y":676,"width":720,"height":12}},{"id":"85a35cd1-70a5-463f-8365-4baf6b65f6f7","block_type":"box","text":"United States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow","page_number":160,"box":{"x":117,"y":692,"width":729,"height":12}},{"id":"b2a67f7e-f26b-4b27-a5d5-65ffae084b29","block_type":"box","text":"funds from the U.S. Treasury Department to make payments under its guarantee. Mortgage-related","page_number":160,"box":{"x":116,"y":707,"width":737,"height":12}},{"id":"cdfb3c3c-af16-47a0-b74f-aa77b123daab","block_type":"box","text":"securities issued by Fannie Mae include Fannie Mae guaranteed Mortgage Pass-Through Certificates","page_number":160,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"40ebcd6b-7538-4dce-9e22-7fe7d1cce9ff","block_type":"box","text":"(also known as “Fannie Maes”), which are guaranteed as to timely payment of principal and interest by","page_number":160,"box":{"x":117,"y":738,"width":761,"height":12}},{"id":"5dd459c3-e906-4d65-a440-bb17aed50f3f","block_type":"box","text":"Fannie Mae. They are not backed by or entitled to the full faith and credit of the United States, but are","page_number":160,"box":{"x":117,"y":754,"width":754,"height":12}},{"id":"f63440aa-81f0-44b2-9915-25649afbf226","block_type":"box","text":"supported by the right of Fannie Mae to borrow from the U.S. Treasury Department. Fannie Mae was","page_number":160,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"3ecdd49f-aeb8-4da7-ac62-a59eab786e6b","block_type":"box","text":"established as a federal agency in 1938 and in 1968 was chartered by Congress as a private","page_number":160,"box":{"x":116,"y":785,"width":690,"height":12}},{"id":"320472b3-5a4e-4304-9c9a-b963677f0438","block_type":"box","text":"shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":160,"box":{"x":116,"y":800,"width":760,"height":12}},{"id":"86b62920-32a0-4faa-b369-8b5662dc12c3","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a","page_number":160,"box":{"x":117,"y":816,"width":697,"height":12}},{"id":"6746b640-6232-4af8-80af-c77876c472b2","block_type":"box","text":"stockholder-owned corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by","page_number":160,"box":{"x":116,"y":831,"width":750,"height":12}},{"id":"30312e35-b12f-4f82-9ada-d35e7175b18e","block_type":"box","text":"the United States or by any Federal Home Loan Banks and do not constitute a debt or obligation of the","page_number":160,"box":{"x":116,"y":847,"width":768,"height":12}},{"id":"d006411a-8617-4798-bc43-51ac65bfd487","block_type":"box","text":"United States or of any Federal Home Loan Bank. Freddie Macs entitle the holder to timely payment of","page_number":160,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"31e7cff3-d080-4623-a21f-bfddb28f221e","block_type":"box","text":"interest, which is guaranteed by Freddie Mac. Freddie Mac guarantees either ultimate collection or","page_number":160,"box":{"x":117,"y":878,"width":735,"height":12}},{"id":"5faf5a14-3812-40b5-af46-82c17b13a83e","block_type":"box","text":"II-66","page_number":160,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f086a81a-92f0-47e9-ad0e-2a07d1fdb1a8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":160,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"545573fb-e5b2-4b9e-95a0-12e32411edf0","block_type":"box","text":"timely payment of all principal payments on the underlying mortgage loans. While Freddie Mac","page_number":161,"box":{"x":116,"y":87,"width":707,"height":12}},{"id":"4fe380ca-2257-44bb-acd1-ba4d1178e266","block_type":"box","text":"generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due on","page_number":161,"box":{"x":116,"y":102,"width":753,"height":13}},{"id":"9f1e2fcf-0907-498b-b654-9035bd393e29","block_type":"box","text":"account of its guarantee of ultimate payment of principal at any time after default on an underlying","page_number":161,"box":{"x":116,"y":118,"width":732,"height":12}},{"id":"4f510849-6ce1-4ef2-a1c6-b31b3de775c0","block_type":"box","text":"mortgage, but in no event later than one year after it becomes payable.","page_number":161,"box":{"x":117,"y":134,"width":532,"height":12}},{"id":"fd18df3e-ef6a-4f5e-8ee2-e71346591e2b","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and","page_number":161,"box":{"x":117,"y":168,"width":730,"height":12}},{"id":"7c2ea0aa-8df4-44c1-9cde-08c6facec5c5","block_type":"box","text":"Freddie Mac mortgage pass-through securities and are issued by originators of and investors in","page_number":161,"box":{"x":117,"y":183,"width":714,"height":12}},{"id":"e8e33036-7f96-495c-a3e8-141dfe46803a","block_type":"box","text":"mortgage loans, including depository institutions, mortgage banks, investment banks and special","page_number":161,"box":{"x":117,"y":199,"width":722,"height":12}},{"id":"74d0fceb-b769-4b63-b748-bc46ce12dd42","block_type":"box","text":"purpose subsidiaries of the foregoing.","page_number":161,"box":{"x":117,"y":214,"width":284,"height":12}},{"id":"01a05044-25a2-4923-92aa-e1cc65e9565c","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than","page_number":161,"box":{"x":117,"y":248,"width":747,"height":12}},{"id":"04ad454f-e280-4594-a47b-4c33d5e556f1","block_type":"box","text":"government and government-related pools because there are no direct or indirect government or","page_number":161,"box":{"x":116,"y":264,"width":723,"height":12}},{"id":"d5b27aea-4859-4309-8883-003378c20ee5","block_type":"box","text":"agency guarantees of payments in the private pools. However, timely payment of interest and principal","page_number":161,"box":{"x":116,"y":279,"width":767,"height":12}},{"id":"760150c9-4ee8-4d45-bd95-ecb0e2305f94","block_type":"box","text":"of these pools may be supported by various forms of insurance or guarantees, including individual","page_number":161,"box":{"x":116,"y":295,"width":732,"height":12}},{"id":"83cff1b1-67f9-42b2-96e1-85abdc664718","block_type":"box","text":"loan, title, pool and hazard insurance and letters of credit. The insurance and guarantees are issued by","page_number":161,"box":{"x":117,"y":310,"width":769,"height":12}},{"id":"307628e1-62e1-4bbb-a38f-47463d6ff151","block_type":"box","text":"governmental entities, private insurers and the mortgage poolers. The insurance and guarantees and","page_number":161,"box":{"x":116,"y":326,"width":756,"height":12}},{"id":"fc1f048c-bc5f-4b7d-93c6-6e5e4b34f222","block_type":"box","text":"the creditworthiness of the issuers thereof will be considered in determining whether a mortgage","page_number":161,"box":{"x":116,"y":341,"width":720,"height":12}},{"id":"c2a5e4ee-fc00-4628-be04-eb2bf657d5e5","block_type":"box","text":"related security meets a Fund’s investment quality standards. There can be no assurance that the","page_number":161,"box":{"x":117,"y":357,"width":731,"height":12}},{"id":"781fca36-4255-471d-9cf6-ddc517efa9d7","block_type":"box","text":"private insurers or guarantors can meet their obligations under the insurance policies or guarantee","page_number":161,"box":{"x":117,"y":372,"width":734,"height":12}},{"id":"08bd3948-9d96-4736-ae3d-836b41a66911","block_type":"box","text":"arrangements. Private mortgage pass-through securities may be bought without insurance or","page_number":161,"box":{"x":116,"y":388,"width":696,"height":12}},{"id":"86c01327-66ad-401a-9a27-678946db20b5","block_type":"box","text":"guarantees if, through an examination of the loan experience and practices of the originator/servicers","page_number":161,"box":{"x":116,"y":403,"width":756,"height":12}},{"id":"99a341f8-4a20-4cd1-b39b-6ed8fb3b3bc7","block_type":"box","text":"and poolers, the Manager determines that the securities meet a Fund’s quality standards. Any","page_number":161,"box":{"x":116,"y":419,"width":703,"height":12}},{"id":"a6cbce37-aa46-4d28-a9d7-5ef690b74fb4","block_type":"box","text":"mortgage-related securities that are issued by private issuers have some exposure to subprime loans","page_number":161,"box":{"x":117,"y":434,"width":757,"height":12}},{"id":"9596d3c0-0bee-42da-9771-460182fa9e76","block_type":"box","text":"as well as to the mortgage and credit markets generally.","page_number":161,"box":{"x":116,"y":450,"width":422,"height":12}},{"id":"fc3fa9f5-5d40-4e46-95e7-218056029959","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the","page_number":161,"box":{"x":117,"y":484,"width":707,"height":12}},{"id":"0d13dd12-0695-497f-98ec-b59ce912403a","block_type":"box","text":"underwriting requirements for the underlying mortgages that are applicable to those mortgage-related","page_number":161,"box":{"x":117,"y":499,"width":757,"height":13}},{"id":"dd397fd7-dc3b-4217-be4f-91bfeb1d01cc","block_type":"box","text":"securities that have a government or government-sponsored entity guarantee. As a result, the","page_number":161,"box":{"x":116,"y":515,"width":702,"height":12}},{"id":"6112aace-b0cd-4a8c-b491-cea20c7e62af","block_type":"box","text":"mortgage loans underlying private mortgage-related securities may, and frequently do, have less","page_number":161,"box":{"x":117,"y":530,"width":722,"height":13}},{"id":"e4eb0b27-2783-472b-804a-816ea8a23b94","block_type":"box","text":"favorable collateral, credit risk or other underwriting characteristics than government or government","page_number":161,"box":{"x":116,"y":546,"width":743,"height":12}},{"id":"9d2a990c-d3fb-4d6b-8d63-6f69ec34ff3f","block_type":"box","text":"sponsored mortgage-related securities and have wider variances in a number of terms including","page_number":161,"box":{"x":116,"y":561,"width":717,"height":13}},{"id":"c9c6d51c-6be4-48bf-9172-b9568215b175","block_type":"box","text":"interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently","page_number":161,"box":{"x":117,"y":577,"width":755,"height":12}},{"id":"d07909ce-0528-4d17-80fd-aff204f5cd46","block_type":"box","text":"include second mortgages, high loan-to-value mortgages and manufactured housing loans. The","page_number":161,"box":{"x":117,"y":592,"width":714,"height":13}},{"id":"5cbd1080-3772-4290-a60d-bebdcd2b7425","block_type":"box","text":"coupon rates and maturities of the underlying mortgage loans in a private-label mortgage-related","page_number":161,"box":{"x":116,"y":608,"width":723,"height":12}},{"id":"fefb4b09-9226-4ea6-99d0-8a56417718ae","block_type":"box","text":"securities pool may vary to a greater extent than those included in a government guaranteed pool, and","page_number":161,"box":{"x":116,"y":624,"width":766,"height":12}},{"id":"d8ee46ae-3741-4fee-a327-fce9fe769289","block_type":"box","text":"the pool may include subprime mortgage loans. Subprime loans refer to loans made to borrowers with","page_number":161,"box":{"x":116,"y":639,"width":762,"height":12}},{"id":"303a3fc6-d32b-4f22-85ef-6d8d14df9447","block_type":"box","text":"weakened credit histories or with a lower capacity to make timely payments on their loans. For these","page_number":161,"box":{"x":116,"y":655,"width":751,"height":12}},{"id":"3032f445-bbc3-402a-8d4a-6a3ed6986051","block_type":"box","text":"reasons, the loans underlying these securities have had in many cases higher default rates than those","page_number":161,"box":{"x":117,"y":670,"width":758,"height":12}},{"id":"96e9bb9a-ec1f-493e-a9b7-8d50a89038c8","block_type":"box","text":"loans that meet government underwriting requirements.","page_number":161,"box":{"x":117,"y":686,"width":410,"height":12}},{"id":"1891a2c8-3c2d-44f8-9e0f-0c58a0bf880a","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools","page_number":161,"box":{"x":116,"y":720,"width":753,"height":12}},{"id":"e3480ba8-07ba-413e-a9e9-b5a3563bc90d","block_type":"box","text":"that contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting","page_number":161,"box":{"x":116,"y":735,"width":740,"height":12}},{"id":"0192a767-6d5f-4e4e-ba27-ff0f5fbaecaf","block_type":"box","text":"mortgage loan repayments may include a general economic turndown, high unemployment, a general","page_number":161,"box":{"x":117,"y":751,"width":754,"height":12}},{"id":"eaa119f1-bc52-4e21-b4a0-7842f880175b","block_type":"box","text":"slowdown in the real estate market, a drop in the market prices of real estate, or an increase in interest","page_number":161,"box":{"x":116,"y":766,"width":763,"height":12}},{"id":"b2c2f043-3061-4714-8c71-59ccdcab433c","block_type":"box","text":"rates resulting in higher mortgage payments by holders of adjustable rate mortgages.","page_number":161,"box":{"x":117,"y":782,"width":631,"height":12}},{"id":"bbff240c-0b62-4ce6-a0be-7113d847d5ce","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited","page_number":161,"box":{"x":117,"y":816,"width":761,"height":12}},{"id":"5f537cfa-1bc8-4806-8342-acedb1f801dc","block_type":"box","text":"market for the securities, especially when there is a perceived weakness in the mortgage and real","page_number":161,"box":{"x":117,"y":831,"width":729,"height":12}},{"id":"1f74e93f-bb33-407b-a1fe-bddf49420cad","block_type":"box","text":"estate market sectors. Without an active trading market, mortgage-related securities held in a Fund’s","page_number":161,"box":{"x":116,"y":847,"width":753,"height":12}},{"id":"2f25e999-674a-4c2e-9233-e06c52b02431","block_type":"box","text":"portfolio may be particularly difficult to value because of the complexities involved in assessing the","page_number":161,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"42fdba64-a4ef-4b2a-ac41-62a546e4d9f1","block_type":"box","text":"value of the underlying mortgage loans.","page_number":161,"box":{"x":116,"y":878,"width":299,"height":12}},{"id":"3cbb35a5-bd28-4445-a35d-620f7d28767d","block_type":"box","text":"II-67","page_number":161,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"49725a6d-c552-4740-8877-5b89ae4c8d39","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":161,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a6bf2508-8fd2-4290-9d1f-d6edd0d0e324","block_type":"box","text":"Collateralized Mortgage Obligations (“CMOs”).","page_number":162,"box":{"x":117,"y":87,"width":343,"height":12}},{"id":"923a55b2-0d42-4f91-8639-ce85fb5ae0fe","block_type":"box","text":"CMOs are debt obligations collateralized by residential","page_number":162,"box":{"x":462,"y":87,"width":415,"height":12}},{"id":"2a814067-a51e-434f-a2aa-77699e3c21ef","block_type":"box","text":"or commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest","page_number":162,"box":{"x":116,"y":103,"width":762,"height":12}},{"id":"fbf716c9-4bfa-4a68-ba2b-8af7abc388aa","block_type":"box","text":"and prepaid principal are generally paid monthly. CMOs may be collateralized by whole mortgage","page_number":162,"box":{"x":116,"y":118,"width":729,"height":12}},{"id":"ef297aab-3b85-4c82-941d-21e021ad0609","block_type":"box","text":"loans or private mortgage pass-through securities but are more typically collateralized by portfolios of","page_number":162,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"edf3bd9b-7842-491f-aa7b-8741cb1e89e9","block_type":"box","text":"mortgage pass-through securities guaranteed by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer","page_number":162,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"df1d8869-9eea-43d2-9a99-7400714f09a1","block_type":"box","text":"of a series of CMOs may elect to be treated as a Real Estate Mortgage Investment Conduit (“REMIC”).","page_number":162,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"c09e9ed1-98b8-4283-95ab-1bd9078e2a93","block_type":"box","text":"All future references to CMOs also include REMICs.","page_number":162,"box":{"x":116,"y":180,"width":392,"height":10}},{"id":"9b99bc37-2fe8-4955-8adc-11cc31d7be42","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific","page_number":162,"box":{"x":117,"y":211,"width":746,"height":12}},{"id":"75fc9fda-0207-4a07-8686-5c177866e8d5","block_type":"box","text":"adjustable or fixed interest rate, and bearing a different stated maturity date and each must be fully","page_number":162,"box":{"x":116,"y":227,"width":738,"height":12}},{"id":"4f8c6723-a4d7-425b-8350-5141faa2962f","block_type":"box","text":"retired no later than its final distribution date. Actual maturity and average life will depend upon the","page_number":162,"box":{"x":117,"y":242,"width":734,"height":12}},{"id":"409097e5-754a-4aa0-b298-7c96ee5de966","block_type":"box","text":"prepayment experience of the collateral, which is ordinarily unrelated to the stated maturity date.","page_number":162,"box":{"x":117,"y":258,"width":719,"height":12}},{"id":"0fcdb91c-3d55-4db6-a40b-bb02dbd93b21","block_type":"box","text":"CMOs often provide for a modified form of call protection through a de facto breakdown of the","page_number":162,"box":{"x":117,"y":273,"width":700,"height":12}},{"id":"70edccd9-1140-45b7-b75d-86b0b6fcf294","block_type":"box","text":"underlying pool of mortgages according to how quickly the loans are repaid. Monthly payment of","page_number":162,"box":{"x":117,"y":289,"width":718,"height":12}},{"id":"fad2b7c3-673c-425b-8744-8036995e9294","block_type":"box","text":"principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":162,"box":{"x":117,"y":304,"width":740,"height":12}},{"id":"c687944a-8b00-406a-95b8-59f07bff76c8","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually","page_number":162,"box":{"x":117,"y":320,"width":729,"height":12}},{"id":"f7eb4635-9ba5-4c6b-8cd8-442911c1e1e6","block_type":"box","text":"receive principal only after the first class has been retired. An investor may be partially protected","page_number":162,"box":{"x":117,"y":335,"width":719,"height":12}},{"id":"a4875835-ba8a-4da1-af79-e9098581fd0b","block_type":"box","text":"against a sooner than desired return of principal because of the sequential payments.","page_number":162,"box":{"x":116,"y":351,"width":640,"height":12}},{"id":"c265537f-7348-4368-8ef2-c0ab5a993b1c","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":162,"box":{"x":117,"y":382,"width":755,"height":12}},{"id":"0ec5b9e6-6b4a-44ce-9ea0-a8cb41f73e16","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by","page_number":162,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"c4b94738-091c-4252-9b23-78f7cb50c339","block_type":"box","text":"the Investment Company Act on investments by a Fund in other investment companies. In addition, in","page_number":162,"box":{"x":116,"y":413,"width":761,"height":12}},{"id":"52182149-ed3f-4adb-a587-da08583e901e","block_type":"box","text":"reliance on an earlier Commission interpretation, a Fund’s investments in certain other qualifying","page_number":162,"box":{"x":117,"y":428,"width":721,"height":12}},{"id":"c0d54c4b-77c3-437c-8298-ae0efc644229","block_type":"box","text":"CMOs, which cannot or do not rely on the rule, are also not subject to the limitation of the Investment","page_number":162,"box":{"x":117,"y":444,"width":753,"height":12}},{"id":"7014f4fa-582c-4b97-9a9a-d998850e8f1e","block_type":"box","text":"Company Act on acquiring interests in other investment companies. In order to be able to rely on the","page_number":162,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"8e837030-29f4-45be-a972-1561a4aaaede","block_type":"box","text":"Commission’s interpretation, these CMOs must be unmanaged, fixed asset issuers, that: (1) invest","page_number":162,"box":{"x":117,"y":475,"width":736,"height":12}},{"id":"9d3de8b8-7ab9-47f5-a724-59948f39937b","block_type":"box","text":"primarily in mortgage-backed securities; (2) do not issue redeemable securities; (3) operate under","page_number":162,"box":{"x":117,"y":490,"width":730,"height":12}},{"id":"ec42691f-2e53-478e-b0d1-57cb17f0b972","block_type":"box","text":"general exemptive orders exempting them from all provisions of the Investment Company Act; and","page_number":162,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"4f9bad3f-43c7-486d-bd60-a514b601ba0f","block_type":"box","text":"(4) are not registered or regulated under the Investment Company Act as investment companies. To","page_number":162,"box":{"x":117,"y":521,"width":748,"height":12}},{"id":"0b8d2155-4425-428c-b61d-1a42dbbd63c1","block_type":"box","text":"the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above","page_number":162,"box":{"x":116,"y":537,"width":674,"height":12}},{"id":"266e2c8b-db6d-44dd-a484-783955ccf7ab","block_type":"box","text":"requirements, the Fund may not invest more than 10% of its assets in all such entities and may not","page_number":162,"box":{"x":117,"y":552,"width":738,"height":12}},{"id":"f97a3a72-e6d6-4825-b283-4f7ba3e070b4","block_type":"box","text":"acquire more than 3% of the voting securities of any single such entity.","page_number":162,"box":{"x":116,"y":568,"width":530,"height":12}},{"id":"21ebd857-db5c-4d5e-b17e-88012d8e52e6","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating","page_number":162,"box":{"x":116,"y":599,"width":765,"height":12}},{"id":"3500f495-d10e-4231-9427-1745430a11b8","block_type":"box","text":"rate CMOs. Parallel pay CMOs are structured to provide payments of principal on each payment date","page_number":162,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"c3a9b5d3-c259-4add-8ba3-749d03b986c3","block_type":"box","text":"to more than one class, concurrently on a proportionate or disproportionate basis. These simultaneous","page_number":162,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"f7978e50-980a-4d4e-909f-a913c796cad5","block_type":"box","text":"payments are taken into account in calculating the final distribution date of each class. Sequential pay","page_number":162,"box":{"x":117,"y":645,"width":759,"height":12}},{"id":"6091f84d-28c8-41bb-9f1e-20aae2aa5c84","block_type":"box","text":"CMOs generally pay principal to only one class at a time while paying interest to several classes. A","page_number":162,"box":{"x":117,"y":661,"width":734,"height":12}},{"id":"e20e2822-60d2-46ed-b5a3-6d8102cd33f0","block_type":"box","text":"wide variety of REMIC Certificates may be issued in the parallel pay or sequential pay structures.","page_number":162,"box":{"x":116,"y":676,"width":719,"height":12}},{"id":"b2f69054-dab0-47a9-a82d-46b4599035b8","block_type":"box","text":"These securities include accrual certificates (also known as “Z-Bonds”), which only accrue interest at a","page_number":162,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"a9205c1e-f1ec-48d8-ba9b-ad6b065c1931","block_type":"box","text":"specified rate until all other certificates having an earlier final distribution date have been retired and","page_number":162,"box":{"x":116,"y":707,"width":740,"height":12}},{"id":"0c5fd01c-82c0-42ea-ae62-bbe2169a041f","block_type":"box","text":"are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose","page_number":162,"box":{"x":116,"y":723,"width":712,"height":12}},{"id":"49cb6d12-7131-4ae9-900b-17acfcd1ec59","block_type":"box","text":"coupon rate fluctuates according to some formula related to an existing market index or rate. Typical","page_number":162,"box":{"x":116,"y":738,"width":745,"height":12}},{"id":"5a6c2d81-3703-4bb9-b5bf-6d8a63f465fa","block_type":"box","text":"indices would include the eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and","page_number":162,"box":{"x":117,"y":754,"width":753,"height":12}},{"id":"641a54e5-e20f-403f-baf6-922ea5c8ea50","block_type":"box","text":"ten-year Treasury yields.","page_number":162,"box":{"x":116,"y":769,"width":184,"height":12}},{"id":"741f3c3e-8107-4c20-a684-a0ca674e9703","block_type":"box","text":"Classes of CMOs also include planned amortization","page_number":162,"box":{"x":117,"y":800,"width":375,"height":12}},{"id":"93c63b5e-0efd-48f2-8f09-5468988e54ce","block_type":"box","text":"classes (“PACs”) and targeted amortization classes","page_number":162,"box":{"x":498,"y":800,"width":373,"height":12}},{"id":"84308927-1c8e-4d91-9d0e-4b6e5057c726","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a s","page_number":162,"box":{"x":117,"y":816,"width":402,"height":12}},{"id":"6dc69984-329a-4ee2-9ebc-edc847d1f1b0","block_type":"box","text":"pecified amount of principal on each payment","page_number":162,"box":{"x":521,"y":816,"width":330,"height":12}},{"id":"cd29f0c4-9cb0-421d-86fb-4a9978343766","block_type":"box","text":"date. The scheduled principal payments for PAC Certifi","page_number":162,"box":{"x":116,"y":831,"width":399,"height":12}},{"id":"45004d1f-c4bd-423b-bbe9-a8a534cd4714","block_type":"box","text":"cates generally have the highest priority on each","page_number":162,"box":{"x":517,"y":831,"width":357,"height":12}},{"id":"061d8a57-ceec-48e0-8652-fffcfecb45fd","block_type":"box","text":"payment date after interest due has been paid to all","page_number":162,"box":{"x":117,"y":847,"width":378,"height":12}},{"id":"6d8cfbe7-51ea-4d24-8b65-50e331a9da2d","block_type":"box","text":"classes entitled to receive interest currently.","page_number":162,"box":{"x":496,"y":847,"width":323,"height":12}},{"id":"788cf23d-d41a-4bcf-8dd8-f54c77430886","block_type":"box","text":"Shortfalls, if any, are added to the amount payabl","page_number":162,"box":{"x":116,"y":862,"width":357,"height":12}},{"id":"3e3667ed-721f-4f0c-8776-4dbde429991a","block_type":"box","text":"e on the next payment date. The PAC Certificate","page_number":162,"box":{"x":475,"y":862,"width":358,"height":12}},{"id":"7b85cee8-5331-4d01-b9be-3e623e77348f","block_type":"box","text":"payment schedule is taken into account in calculating t","page_number":162,"box":{"x":117,"y":878,"width":391,"height":12}},{"id":"530fb639-dc28-4b34-a4ae-1db3377282ba","block_type":"box","text":"the final distribution date of each class of PAC. In","page_number":162,"box":{"x":508,"y":878,"width":363,"height":9}},{"id":"f5aa45e4-8fe1-48d8-aa90-116835519d30","block_type":"box","text":"II-68","page_number":162,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"88e1ed58-cdd6-4ada-a902-fdb2998086a9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":162,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5c291997-823c-4c58-9f50-1d5e761f0502","block_type":"box","text":"order to create PAC tranches, one or more tranches gener","page_number":163,"box":{"x":116,"y":87,"width":426,"height":12}},{"id":"a9877cdf-543e-426d-acf2-3ce3cc6f1cd5","block_type":"box","text":"ally must be created that absorb most of the","page_number":163,"box":{"x":542,"y":87,"width":325,"height":12}},{"id":"1666d758-c901-4384-a6c7-86567fbeccd3","block_type":"box","text":"volatility in the underlying mortgage assets. These","page_number":163,"box":{"x":116,"y":103,"width":369,"height":12}},{"id":"62b7ebbd-f90f-4c14-a32d-d40855d3e55b","block_type":"box","text":"tranches (often called “supports” or “companion”","page_number":163,"box":{"x":485,"y":102,"width":356,"height":13}},{"id":"6157c411-b813-4da5-95c8-ddb2618c5748","block_type":"box","text":"tranches) tend to have market prices and yields t","page_number":163,"box":{"x":116,"y":118,"width":350,"height":12}},{"id":"0367d3c8-0a7d-4868-b2dc-825e27aadcdb","block_type":"box","text":"that are more volatile than the PAC classes.","page_number":163,"box":{"x":466,"y":118,"width":325,"height":10}},{"id":"b0622333-25c4-41fe-a8e6-9c49692a7839","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each","page_number":163,"box":{"x":116,"y":149,"width":745,"height":12}},{"id":"b8e20b77-cd41-4452-9a77-b784eb405c83","block_type":"box","text":"payment date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however,","page_number":163,"box":{"x":117,"y":165,"width":738,"height":12}},{"id":"1ef15414-6d53-437f-ab1b-3e7315b4ad97","block_type":"box","text":"remains in effect as long as prepayment rates on the underlying mortgages do not exceed certain","page_number":163,"box":{"x":117,"y":180,"width":728,"height":12}},{"id":"ec1e7cef-d218-4d31-91d0-995add062b92","block_type":"box","text":"ranges. In contrast, a TAC provides investors with protection, to a certain level, against either faster","page_number":163,"box":{"x":117,"y":196,"width":743,"height":12}},{"id":"8a81ee59-b0c1-42ca-b0a5-6cf809e08b22","block_type":"box","text":"than expected or slower than expected prepayment rates, but not both. TACs thus provide more cash","page_number":163,"box":{"x":116,"y":211,"width":759,"height":12}},{"id":"ed7bb9f1-86c4-4d74-9fbf-4593b85f925e","block_type":"box","text":"flow stability than a regular sequential paying class, but less than a PAC. TACs also tend to have","page_number":163,"box":{"x":116,"y":227,"width":725,"height":12}},{"id":"cdea393c-fb2d-41f4-a41c-2aba95006e05","block_type":"box","text":"market prices and yields that are more volatile than PACs.","page_number":163,"box":{"x":117,"y":242,"width":437,"height":12}},{"id":"2427a035-1bd0-4f32-8273-b8ca3d33dc2f","block_type":"box","text":"Adjustable Rate Mortgage Securities.","page_number":163,"box":{"x":115,"y":273,"width":277,"height":12}},{"id":"a7c4b450-629e-4d61-9bff-0c06cb770adf","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through","page_number":163,"box":{"x":393,"y":273,"width":479,"height":12}},{"id":"c9d922e6-3aa2-4ba3-baf7-12bbc2ee2fb2","block_type":"box","text":"securities collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for","page_number":163,"box":{"x":116,"y":289,"width":706,"height":12}},{"id":"b854c397-c217-4b3c-8d17-24e3d46d8eb6","block_type":"box","text":"inclusion in a mortgage pool generally provide for a fixed initial mortgage interest rate for a set number","page_number":163,"box":{"x":117,"y":304,"width":764,"height":12}},{"id":"ac2f4ca6-c075-473b-a137-6688c5b6ea35","block_type":"box","text":"of scheduled monthly payments. After that schedule of payments has been completed, the interest","page_number":163,"box":{"x":116,"y":320,"width":736,"height":12}},{"id":"27f08e99-5526-4017-ac6e-11ab8dc6b62f","block_type":"box","text":"rates are subject to periodic adjustment based on changes to a designated benchmark index.","page_number":163,"box":{"x":117,"y":335,"width":697,"height":12}},{"id":"1d2ceaf9-ffca-484b-9419-b7b1cb7dcbe6","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary","page_number":163,"box":{"x":116,"y":366,"width":741,"height":12}},{"id":"f19e80f6-5213-49df-9174-a0545cda8a20","block_type":"box","text":"over the lifetime of the security. In addition, certain ARMs provide for additional limitations on the","page_number":163,"box":{"x":116,"y":382,"width":722,"height":12}},{"id":"3a5cfb85-3a52-46e1-8829-68ecfb8bcb6e","block_type":"box","text":"maximum amount by which the mortgage interest rate may adjust for any single adjustment period. In","page_number":163,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"abdc76eb-bb18-4616-9564-65ca2632ffe8","block_type":"box","text":"the event that market rates of interest rise more rapidly to levels above that of the ARM’s maximum","page_number":163,"box":{"x":116,"y":413,"width":741,"height":12}},{"id":"6ccfc046-3cab-4577-be58-99089c1c5e56","block_type":"box","text":"rate, the ARM’s coupon may represent a below market rate of interest. In these circumstances, the","page_number":163,"box":{"x":117,"y":428,"width":737,"height":12}},{"id":"448915e4-2bee-4cbb-80a6-f22f45c17ba1","block_type":"box","text":"market value of the ARM security will likely have fallen.","page_number":163,"box":{"x":117,"y":444,"width":412,"height":12}},{"id":"1922eb94-6ba0-4500-8dfd-aaa9d001a74c","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a","page_number":163,"box":{"x":117,"y":475,"width":728,"height":12}},{"id":"4947e947-52c5-4132-b872-02806f512287","block_type":"box","text":"monthly payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is","page_number":163,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"f91494d7-ce86-46e9-b26c-2cce43eceb69","block_type":"box","text":"added to the principal balance of the mortgage loan, which is repaid through future monthly payments.","page_number":163,"box":{"x":116,"y":506,"width":764,"height":12}},{"id":"abab5013-fb3b-4536-960b-f1956e157e0e","block_type":"box","text":"If the monthly payment for such an instrument exceeds the sum of the interest accrued at the","page_number":163,"box":{"x":117,"y":521,"width":695,"height":12}},{"id":"a2edca4b-0a63-4559-a96b-4b3c908db8b5","block_type":"box","text":"applicable mortgage interest rate and the principal payment required at such point to amortize the","page_number":163,"box":{"x":116,"y":537,"width":730,"height":12}},{"id":"aa1e9618-2cc5-4c80-8540-9992e177f1da","block_type":"box","text":"outstanding principal balance over the remaining term of the loan, the excess is then used to reduce","page_number":163,"box":{"x":116,"y":552,"width":748,"height":12}},{"id":"4b068b91-dbe0-4ecd-ba81-c172eaac37a9","block_type":"box","text":"the outstanding principal balance of the ARM.","page_number":163,"box":{"x":116,"y":568,"width":344,"height":12}},{"id":"52829611-754a-43bf-b8f0-129a4967f36f","block_type":"box","text":"CMO Residuals.","page_number":163,"box":{"x":117,"y":599,"width":120,"height":9}},{"id":"0b25d63f-dbb6-4b10-bcf4-b0731da1f863","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or","page_number":163,"box":{"x":238,"y":599,"width":546,"height":12}},{"id":"90982c74-eb7d-4230-a40d-c20948be8e3f","block_type":"box","text":"instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans,","page_number":163,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"501977ee-bcae-4414-b74c-83c430da17fb","block_type":"box","text":"including savings and loan associations, homebuilders, mortgage banks, commercial banks,","page_number":163,"box":{"x":117,"y":630,"width":688,"height":12}},{"id":"292ccc3e-9742-4036-b55e-3d1420dbfede","block_type":"box","text":"investment banks, and special purpose entities of the foregoing. The cash flow generated by the","page_number":163,"box":{"x":117,"y":645,"width":718,"height":12}},{"id":"90f446d4-c291-4fbb-8571-45b51662cf67","block_type":"box","text":"mortgage assets underlying a series of CMOs is applied first to make required payments of principal","page_number":163,"box":{"x":117,"y":661,"width":742,"height":12}},{"id":"85f81cf9-cec8-4ebf-adf9-851d8a0aa988","block_type":"box","text":"and interest on the CMOs and second to pay the related administrative expenses and any","page_number":163,"box":{"x":116,"y":676,"width":668,"height":12}},{"id":"034f5897-aeb3-4d72-b491-54c66aba1795","block_type":"box","text":"management fees of the issuer. The residual in a CMO structure generally represents the interest in","page_number":163,"box":{"x":117,"y":692,"width":740,"height":12}},{"id":"7c910eba-270d-4bed-9496-16d0662065fa","block_type":"box","text":"any excess cash flow remaining after making the foregoing payments. Each payment of such excess","page_number":163,"box":{"x":116,"y":707,"width":748,"height":12}},{"id":"5d02eccf-126d-4abe-b51f-99d7a8e7800d","block_type":"box","text":"cash flow to a holder of the related CMO residual represents income and/or a return of capital. The","page_number":163,"box":{"x":116,"y":723,"width":733,"height":12}},{"id":"5ba84f1b-ee92-44af-9f84-088a30e3bd53","block_type":"box","text":"amount of residual cash flow resulting from a CMO will depend on, among other things, the","page_number":163,"box":{"x":116,"y":738,"width":676,"height":12}},{"id":"1d4d695c-c06c-4703-9bca-5dd335540e1c","block_type":"box","text":"characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates,","page_number":163,"box":{"x":116,"y":754,"width":762,"height":12}},{"id":"a92bd58e-67dd-4f9b-b9d0-3ba2d91612ff","block_type":"box","text":"the amount of administrative expenses and the prepayment experience on the mortgage assets. In","page_number":163,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"8344ed20-cadb-4c55-9ad2-317d9982a336","block_type":"box","text":"part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the related","page_number":163,"box":{"x":117,"y":785,"width":743,"height":12}},{"id":"841e9da2-1260-4342-9d71-c21e784d3cfb","block_type":"box","text":"underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":163,"box":{"x":117,"y":800,"width":764,"height":12}},{"id":"29ee4be4-dbf7-452c-9499-7df0e48fe322","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate,","page_number":163,"box":{"x":116,"y":816,"width":739,"height":12}},{"id":"f1d8785b-545f-4b07-9574-b935b2bbfa0f","block_type":"box","text":"the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the","page_number":163,"box":{"x":116,"y":831,"width":733,"height":12}},{"id":"570543fd-3cae-42bc-8e08-4d1476a52a8c","block_type":"box","text":"level of the index upon which interest rate adjustments are based. In certain circumstances, a Fund","page_number":163,"box":{"x":117,"y":847,"width":741,"height":12}},{"id":"1ef87b5d-0066-4bf9-8ffd-55f4aa4443b8","block_type":"box","text":"may fail to recoup fully its initial investment in a CMO residual.","page_number":163,"box":{"x":117,"y":862,"width":466,"height":12}},{"id":"7fc6fed1-f3ee-4a31-8712-72309d444d82","block_type":"box","text":"II-69","page_number":163,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"49667720-d0be-448b-9496-5fc9615065ae","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":163,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"695de8bd-d893-494e-b59c-97929620b9f9","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more","page_number":164,"box":{"x":117,"y":87,"width":709,"height":12}},{"id":"42ca5cd7-67f7-448d-b229-d259593218d5","block_type":"box","text":"investment banking firms acting as brokers or dealers. Transactions in CMO residuals are generally","page_number":164,"box":{"x":117,"y":102,"width":744,"height":13}},{"id":"250d55f1-e642-463c-a680-e650e7b47d7d","block_type":"box","text":"completed only after careful review of the characteristics of the securities in question. In addition, CMO","page_number":164,"box":{"x":116,"y":118,"width":768,"height":12}},{"id":"781b146d-beb1-4195-83f9-389255bcdf10","block_type":"box","text":"residuals may or, pursuant to an exemption therefrom, may not have been registered under the","page_number":164,"box":{"x":117,"y":134,"width":711,"height":12}},{"id":"bd8448cf-2772-4c17-b699-c197e402e1bc","block_type":"box","text":"Securities Act. Residual interests generally are junior to, and may be significantly more volatile than,","page_number":164,"box":{"x":116,"y":149,"width":748,"height":12}},{"id":"c0b8f8c6-7242-48a7-b7bd-e9e1d62ff991","block_type":"box","text":"“regular” CMO and REMIC interests. CMO residuals, whether or not registered under the Securities","page_number":164,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"58b2a18a-7974-4fb3-b65d-d28527365b22","block_type":"box","text":"Act, may be subject to certain restrictions on transferability.","page_number":164,"box":{"x":116,"y":180,"width":444,"height":12}},{"id":"067b5b0b-0674-4234-a867-e7ec6579cf86","block_type":"box","text":"Stripped Mortgage-Backed Securities.","page_number":164,"box":{"x":117,"y":207,"width":280,"height":12}},{"id":"0f0280ee-25bc-445c-add5-b0f9e2b41565","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities","page_number":164,"box":{"x":399,"y":207,"width":443,"height":12}},{"id":"6e3e82e0-f384-4f66-855d-f63f701dfa79","block_type":"box","text":"(“SMBSs”) issued by agencies or instrumentalities of the United States. SMBSs are derivative multi","page_number":164,"box":{"x":117,"y":223,"width":740,"height":12}},{"id":"9808879e-a34a-4121-bdde-fb27ef515e2f","block_type":"box","text":"class mortgage-backed securities. SMBS arrangements commonly involve two classes of securities","page_number":164,"box":{"x":116,"y":238,"width":744,"height":12}},{"id":"c407171b-7e85-4edb-a626-5d2516b3ad0f","block_type":"box","text":"that receive different proportions of the interest and principal distributions on a pool of mortgage","page_number":164,"box":{"x":116,"y":254,"width":716,"height":12}},{"id":"dd49dde1-047b-4b7e-9b9c-1d925682f2ae","block_type":"box","text":"assets. A common variety of SMBS is where one class (the principal only or PO class) receives some","page_number":164,"box":{"x":116,"y":269,"width":759,"height":12}},{"id":"c8dc6888-da89-4875-8f37-cb31563aedd3","block_type":"box","text":"of the interest and most of the principal from the underlying assets, while the other class (the interest","page_number":164,"box":{"x":116,"y":285,"width":752,"height":12}},{"id":"e73c99fb-0279-4560-a697-49ce8a9b5de1","block_type":"box","text":"only or IO class) receives most of the interest and the remainder of the principal. In the most extreme","page_number":164,"box":{"x":116,"y":300,"width":755,"height":12}},{"id":"249d3ec9-9a99-48c7-a14b-ed75c74f2d7f","block_type":"box","text":"case, the IO class receives all of the interest, while","page_number":164,"box":{"x":116,"y":316,"width":382,"height":11}},{"id":"47240572-31fb-4928-9bdb-744eb4c554ec","block_type":"box","text":"the PO class receives all of the principal. While a","page_number":164,"box":{"x":498,"y":316,"width":368,"height":12}},{"id":"e8891009-d448-4e2b-be68-e5e3485baddc","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO","page_number":164,"box":{"x":117,"y":331,"width":758,"height":12}},{"id":"962de89e-1be8-43d2-8333-2a6a1c87917a","block_type":"box","text":"class. The yield to maturity of an IO class is extremely sensitive to the rate of principal payments","page_number":164,"box":{"x":116,"y":347,"width":720,"height":12}},{"id":"a4b3ca26-7e25-4f01-99b3-37d9bcc55e48","block_type":"box","text":"(including prepayments) on the related underlying assets, and a rapid rate of principal prepayments in","page_number":164,"box":{"x":117,"y":362,"width":759,"height":12}},{"id":"895cf4ab-ef99-4b3d-b3f0-d5a1a19e9a80","block_type":"box","text":"excess of that considered in pricing the securities will have a material adverse effect on an IO","page_number":164,"box":{"x":116,"y":378,"width":699,"height":12}},{"id":"4d47f050-6aa8-4727-9234-907048419209","block_type":"box","text":"security’s yield to maturity. If the underlying mortgage assets experience greater than anticipated","page_number":164,"box":{"x":116,"y":393,"width":724,"height":12}},{"id":"c32821d6-6ba9-4521-aa2d-6292fce8f688","block_type":"box","text":"payments of principal, a Fund may fail to recoup fully its initial investment in IOs. In addition, there are","page_number":164,"box":{"x":117,"y":409,"width":760,"height":12}},{"id":"00a74eb7-9ec4-4b61-8f18-42e8b7cc4001","block_type":"box","text":"certain types of IOs that represent the interest portion of a particular class as opposed to the interest","page_number":164,"box":{"x":116,"y":424,"width":751,"height":12}},{"id":"44884ca2-1304-42ee-b2ba-8baf2438e6ce","block_type":"box","text":"portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":164,"box":{"x":117,"y":440,"width":768,"height":12}},{"id":"a74e4b40-caa6-4c47-8e9b-fea4b65d1ca7","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above","page_number":164,"box":{"x":117,"y":455,"width":733,"height":12}},{"id":"b4fcff51-d418-4b36-b69a-2d398ff332ad","block_type":"box","text":"factors, a Fund generally will purchase IOs only as a component of so called “synthetic” securities. This","page_number":164,"box":{"x":116,"y":471,"width":772,"height":12}},{"id":"e399386d-8f9e-465d-acf7-ba6029aecc67","block_type":"box","text":"means that purchases of IOs will be matched with certain purchases of other securities, such as POs,","page_number":164,"box":{"x":117,"y":486,"width":759,"height":12}},{"id":"4796dbb5-6d8c-420f-bc50-0b8e4a5821aa","block_type":"box","text":"inverse floating rate CMOs or fixed rate securities; as interest rates fall, presenting a greater risk of","page_number":164,"box":{"x":117,"y":502,"width":737,"height":12}},{"id":"5d9db425-1298-4b00-a525-18c418ed6fee","block_type":"box","text":"unanticipated prepayments of principal, the negative effect on a Fund because of its holdings of IOs","page_number":164,"box":{"x":117,"y":517,"width":744,"height":12}},{"id":"d36e0fab-8291-4b46-950b-02e733e5a5c9","block_type":"box","text":"should be diminished somewhat because of the increased yield on the inverse floating rate CMOs or","page_number":164,"box":{"x":116,"y":533,"width":751,"height":12}},{"id":"fa4a4638-30fa-43c0-9d79-895e20287968","block_type":"box","text":"the increased appreciation on the POs or fixed rate securities.","page_number":164,"box":{"x":116,"y":548,"width":465,"height":12}},{"id":"3eab01d4-3f65-4ebc-bdbc-bb2e305b0d76","block_type":"box","text":"Tiered Index Bonds.","page_number":164,"box":{"x":118,"y":576,"width":147,"height":9}},{"id":"b2830e4e-4bdc-45e8-b0d8-b94992cfc6e2","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on","page_number":164,"box":{"x":266,"y":575,"width":612,"height":12}},{"id":"a79ef8e1-8cc0-43cc-9a1e-fa520d88a346","block_type":"box","text":"a tiered index bond is tied to a specified index or","page_number":164,"box":{"x":116,"y":591,"width":365,"height":12}},{"id":"4049d91c-877a-47ea-8a32-bf36754a924d","block_type":"box","text":"market rate. So long as this index or market rate is","page_number":164,"box":{"x":482,"y":591,"width":380,"height":12}},{"id":"001b3271-f7dc-40d3-ad24-8a11e392fb48","block_type":"box","text":"below a predetermined “strike” rate, the interest rate on the tiered index bond remains fixed. If,","page_number":164,"box":{"x":117,"y":606,"width":704,"height":12}},{"id":"92c23fc5-53a0-424d-8f4b-df6508b7a3e7","block_type":"box","text":"however, the specified index or market rate rises above the “strike” rate, the interest rate of the tiered","page_number":164,"box":{"x":117,"y":622,"width":754,"height":12}},{"id":"4f15e6b1-e886-4928-ae86-8d4b0a36c0fd","block_type":"box","text":"index bond will decrease. Thus, under these circumstances, the interest rate on a tiered index bond,","page_number":164,"box":{"x":117,"y":638,"width":747,"height":11}},{"id":"2e1592f7-7a49-4f76-bc48-d75183b4763e","block_type":"box","text":"like an inverse floater, will move in the opposite direction of prevailing interest rates, with the result that","page_number":164,"box":{"x":117,"y":653,"width":767,"height":12}},{"id":"d291dd83-eea1-42d8-8849-624d10ee150f","block_type":"box","text":"the price of the tiered index bond may be considerably more volatile than that of a fixed-rate bond.","page_number":164,"box":{"x":116,"y":668,"width":727,"height":12}},{"id":"b3ded251-bee4-4518-8d09-5af7308c128f","block_type":"box","text":"TBA Commitments.","page_number":164,"box":{"x":118,"y":696,"width":142,"height":9}},{"id":"3bed9202-3b9a-422d-ace1-26f3c006fb02","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA","page_number":164,"box":{"x":267,"y":696,"width":573,"height":12}},{"id":"df5a5c67-bf76-4413-a4c0-45e07ce9334f","block_type":"box","text":"commitments are forward agreements for the purchase or sale of securities, including mortgage","page_number":164,"box":{"x":116,"y":711,"width":716,"height":12}},{"id":"c655bb47-1049-4e2e-9836-c13e267a59a9","block_type":"box","text":"backed securities for a fixed price, with payment and delivery on an agreed upon future settlement","page_number":164,"box":{"x":117,"y":727,"width":728,"height":12}},{"id":"7da86d59-03d9-47e5-91d0-8a0b765dfb74","block_type":"box","text":"date. The specific securities to be delivered are not identified at the trade date. However, delivered","page_number":164,"box":{"x":116,"y":742,"width":731,"height":12}},{"id":"3f1b515a-13eb-4567-a169-d9b910af5913","block_type":"box","text":"securities must meet specified terms, including issuer, rate and mortgage terms. When the Fund enters","page_number":164,"box":{"x":116,"y":758,"width":767,"height":12}},{"id":"22316404-622f-4d60-a42b-9a6acf590958","block_type":"box","text":"into a TBA commitment for the sale of mortgage-backed securities for a fixed price, with payment and","page_number":164,"box":{"x":117,"y":773,"width":752,"height":12}},{"id":"bacc3283-0e8d-4ffd-9920-c3e828111606","block_type":"box","text":"delivery on an agreed upon future settlement date (which may be referred to as having a short position","page_number":164,"box":{"x":116,"y":789,"width":761,"height":12}},{"id":"0c48f64b-bfed-4db2-af72-76c9f5a1aa68","block_type":"box","text":"in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":164,"box":{"x":117,"y":804,"width":707,"height":12}},{"id":"b29fb5df-c28c-4ddd-b0e6-96bf5004a780","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":164,"box":{"x":117,"y":820,"width":733,"height":12}},{"id":"b151ede9-d8db-49e6-b889-8e63c51a8989","block_type":"box","text":"Commitments” below.","page_number":164,"box":{"x":117,"y":835,"width":166,"height":10}},{"id":"ce98c262-23d4-44cd-83b3-ab693989d66e","block_type":"box","text":"Mortgage Dollar Rolls.","page_number":164,"box":{"x":116,"y":862,"width":164,"height":12}},{"id":"50af1914-944f-49ba-b189-42bed5c72a66","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll","page_number":164,"box":{"x":282,"y":862,"width":562,"height":12}},{"id":"979f902a-a7b6-4481-9fc8-05de12bd0ec3","block_type":"box","text":"transaction, a Fund sells mortgage-backed securities for delivery in the current month and","page_number":164,"box":{"x":116,"y":878,"width":673,"height":12}},{"id":"f832ed96-9e38-4598-aff5-05484c9eca42","block_type":"box","text":"II-70","page_number":164,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d44dbb47-cd62-4337-a26e-fa103aca170c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":164,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0d352e1c-c484-4fc4-94b9-5dd9b9e44d7f","block_type":"box","text":"simultaneously contracts to repurchase substantially similar securities on a specified future date. The","page_number":165,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"8cf55cf9-5df9-42df-9d5b-bc9f0947fc5c","block_type":"box","text":"securities that are repurchased will bear the same interest rate and a similar maturity as those sold, but","page_number":165,"box":{"x":116,"y":103,"width":771,"height":12}},{"id":"6d23bfa1-4714-41f5-8f4e-6fa4c2d3db2a","block_type":"box","text":"pools of mortgages collateralizing those securities may have different prepayment histories than those","page_number":165,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"8db87ea9-1c61-4541-baaa-4c6841996983","block_type":"box","text":"sold. During the period between the sale and repurchase, a Fund will not be entitled to receive interest","page_number":165,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"062f7e04-df09-4cb9-95ac-99631e6b01e1","block_type":"box","text":"and principal payments on the securities sold. Proceeds of the sale will be invested in additional","page_number":165,"box":{"x":116,"y":149,"width":716,"height":12}},{"id":"dea77cf1-5e9d-4ceb-95c5-10019fda59f3","block_type":"box","text":"instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":165,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"12dbd5de-5e63-4306-a71f-583f43f5fd2e","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been","page_number":165,"box":{"x":116,"y":180,"width":757,"height":12}},{"id":"5d6c5469-fdd7-48fc-872f-c02abd32f296","block_type":"box","text":"realized on the securities sold as part of the dollar roll, the use of this technique will diminish the","page_number":165,"box":{"x":117,"y":196,"width":715,"height":11}},{"id":"720317a7-54b6-4194-b54e-eed21f85893a","block_type":"box","text":"investment performance of a Fund compared with what the performance would have been without the","page_number":165,"box":{"x":117,"y":211,"width":759,"height":12}},{"id":"e4731bdf-23d3-4ffa-87ea-c33684bef9a5","block_type":"box","text":"use of dollar rolls.","page_number":165,"box":{"x":117,"y":227,"width":135,"height":9}},{"id":"632eb9cc-65ff-4ec9-9019-816adb626d2b","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and","page_number":165,"box":{"x":117,"y":255,"width":760,"height":12}},{"id":"85584f5d-6245-4a9d-bd67-34cdc017e2b9","block_type":"box","text":"a subsequent purchase or sale of a substantially similar security in the forward market. Transactions in","page_number":165,"box":{"x":116,"y":270,"width":767,"height":12}},{"id":"9c3e10e3-8b29-48f4-9373-a59e356081e2","block_type":"box","text":"mortgage dollar rolls may increase trading costs and portfolio turnover.","page_number":165,"box":{"x":117,"y":286,"width":529,"height":12}},{"id":"bcd30183-0fff-4c66-8ffa-79803900939d","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes","page_number":165,"box":{"x":117,"y":314,"width":738,"height":12}},{"id":"da0db008-6197-4d66-824e-5c0def879558","block_type":"box","text":"insolvent, a Fund’s use of the proceeds of the current sale portion of the transaction may be restricted","page_number":165,"box":{"x":117,"y":330,"width":760,"height":12}},{"id":"67041c90-ec48-4d59-a620-c9284ee91977","block_type":"box","text":"pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s","page_number":165,"box":{"x":117,"y":345,"width":738,"height":12}},{"id":"a2f03102-b98f-465e-93a7-bfcf48da2fed","block_type":"box","text":"obligation to purchase the similar securities in the forward transaction.","page_number":165,"box":{"x":116,"y":361,"width":525,"height":12}},{"id":"e8340f57-e5d1-4841-bf76-6aa62c100b4d","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar","page_number":165,"box":{"x":116,"y":389,"width":750,"height":12}},{"id":"1857af0b-8fc1-48a4-a297-cb226114a3fd","block_type":"box","text":"rolls may depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar","page_number":165,"box":{"x":117,"y":405,"width":765,"height":12}},{"id":"78e37a3c-e68f-482b-a368-00639f37e4d5","block_type":"box","text":"rolls involve the risk that the market value of the securities subject to a Fund’s forward purchase","page_number":165,"box":{"x":117,"y":420,"width":716,"height":12}},{"id":"1d7fddc5-259f-4819-8241-4eccdf58843f","block_type":"box","text":"commitment may decline below, or the market value of the securities subject to a Fund’s forward sale","page_number":165,"box":{"x":116,"y":436,"width":758,"height":12}},{"id":"d7dfdd74-874e-471b-8f0a-56341e7cb416","block_type":"box","text":"commitment may increase above, the exercise price of the forward commitment. Dollar rolls are","page_number":165,"box":{"x":116,"y":451,"width":715,"height":12}},{"id":"d7d62264-579e-40ff-92a4-410d4f79f367","block_type":"box","text":"speculative techniques that can be deemed to involve leverage. There is no assurance that dollar rolls","page_number":165,"box":{"x":116,"y":467,"width":763,"height":12}},{"id":"3da16c01-15f2-4552-842a-8ef48b6a4306","block_type":"box","text":"can be successfully employed.","page_number":165,"box":{"x":116,"y":482,"width":233,"height":12}},{"id":"4881e194-fd8e-4e86-868c-4fd053856237","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":165,"box":{"x":117,"y":511,"width":740,"height":12}},{"id":"83ac25a6-f2b8-42d9-88d9-087105f470d1","block_type":"box","text":"settling securities (e.g., dollar rolls and firm and standby commitments, including TBA commitments)","page_number":165,"box":{"x":116,"y":526,"width":748,"height":12}},{"id":"c89864a7-041f-4d0d-99d6-3f2e937c3b78","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":165,"box":{"x":116,"y":542,"width":750,"height":12}},{"id":"7fd9e596-62f5-424b-8687-283d0bd94be7","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the transaction meets the","page_number":165,"box":{"x":116,"y":557,"width":718,"height":12}},{"id":"779050e2-d707-4fb4-948e-e25f5369dafe","block_type":"box","text":"Delayed-Settlement Securities Provision (as defined below under “—When-Issued Securities, Delayed","page_number":165,"box":{"x":117,"y":573,"width":764,"height":12}},{"id":"cbc81dc5-0a64-4df1-9eb3-9902a02fdec7","block_type":"box","text":"Delivery Securities and Forward Commitments”). If a when-issued, forward-settling or non-standard","page_number":165,"box":{"x":117,"y":588,"width":742,"height":12}},{"id":"53c989ab-89ca-4498-b2d8-19895971ce8b","block_type":"box","text":"settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then it is","page_number":165,"box":{"x":116,"y":604,"width":715,"height":12}},{"id":"479978e7-419e-4474-be2e-75d50465471e","block_type":"box","text":"treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives—Regulation of","page_number":165,"box":{"x":116,"y":619,"width":669,"height":12}},{"id":"5642e6ff-8de4-44aa-afac-6274869ad067","block_type":"box","text":"Derivatives—Rule 18f-4 under the Investment Company Act” above.","page_number":165,"box":{"x":117,"y":635,"width":511,"height":12}},{"id":"30fdff8c-66e0-4d87-a1aa-16037809c0e5","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":165,"box":{"x":117,"y":663,"width":270,"height":12}},{"id":"2699b76e-7dab-4c68-a879-5d4966b81ab4","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities.","page_number":165,"box":{"x":394,"y":663,"width":438,"height":12}},{"id":"d647fa15-fb88-460f-8132-61b95c829979","block_type":"box","text":"These securities are derivative interest-only mortgage securities structured off home equity loan","page_number":165,"box":{"x":116,"y":678,"width":711,"height":13}},{"id":"c3683d79-5471-413b-9620-709b69f4ff36","block_type":"box","text":"transactions. NIM securities receive any “excess” interest computed after paying coupon costs,","page_number":165,"box":{"x":116,"y":694,"width":704,"height":12}},{"id":"d9d23126-66dc-4ed6-9861-9119975a63dd","block_type":"box","text":"servicing costs and fees and any credit losses associated with the underlying pool of home equity","page_number":165,"box":{"x":116,"y":709,"width":724,"height":13}},{"id":"39b4a073-1cb7-415e-be53-1c1e69a4f048","block_type":"box","text":"loans. Like traditional stripped mortgage-backed securities, the yield to maturity on a NIM security is","page_number":165,"box":{"x":117,"y":725,"width":740,"height":12}},{"id":"3f96ad7e-85de-4dfe-8720-100ed93f2abe","block_type":"box","text":"sensitive not only to changes in prevailing interest rates but also to the rate of principal payments","page_number":165,"box":{"x":116,"y":740,"width":720,"height":13}},{"id":"db43f665-ac41-4c51-b4e5-ce8b8c9bec2f","block_type":"box","text":"(including prepayments) on the underlying home equity loans. NIM securities are highly sensitive to","page_number":165,"box":{"x":117,"y":756,"width":735,"height":12}},{"id":"8e7f2a3a-4e1e-4154-970c-5704d955c762","block_type":"box","text":"credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":165,"box":{"x":116,"y":772,"width":651,"height":12}},{"id":"319b0854-3975-48c1-a2bf-2feaa100c3a7","block_type":"box","text":"Municipal Investments.","page_number":165,"box":{"x":116,"y":800,"width":184,"height":12}},{"id":"12a3a29a-4d88-4c01-ab31-a64dcb71ec0e","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states,","page_number":165,"box":{"x":307,"y":800,"width":533,"height":12}},{"id":"8c751dcf-f738-410f-a042-0bb5d315d516","block_type":"box","text":"territories and possessions of the United States and the District of Columbia and their political","page_number":165,"box":{"x":116,"y":815,"width":694,"height":12}},{"id":"79851505-4635-4f36-b030-e3d7adcdc863","block_type":"box","text":"subdivisions, agencies and instrumentalities, the payments from which, in the opinion of bond counsel","page_number":165,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"ff003712-103b-457a-aae9-603fd413e90a","block_type":"box","text":"to the issuer, are excludable from gross income for U.S. federal income tax purposes (“Municipal","page_number":165,"box":{"x":116,"y":846,"width":723,"height":12}},{"id":"f4f7cf4a-abe9-4674-b1a9-3f2286497bac","block_type":"box","text":"Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that pay interest","page_number":165,"box":{"x":117,"y":862,"width":691,"height":12}},{"id":"2309c4d8-fdeb-43cd-a0e2-47ce67c7981f","block_type":"box","text":"excludable from gross income for purposes of state and local income taxes of the designated state","page_number":165,"box":{"x":116,"y":877,"width":737,"height":12}},{"id":"c017e8aa-53ee-4453-ac17-ca72f581c69d","block_type":"box","text":"II-71","page_number":165,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"dd222d49-fa43-48e3-8949-b03bab7eaad4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":165,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"39c80f6e-e915-4d5b-a124-2cda3956ca48","block_type":"box","text":"and/or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated","page_number":166,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"0a79df77-d99d-4aa8-ac0c-840441b8306c","block_type":"box","text":"state (“State Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on","page_number":166,"box":{"x":116,"y":102,"width":762,"height":13}},{"id":"b79c7a98-db14-42b8-b2c7-17181be2bbc7","block_type":"box","text":"behalf of a state or territory or by an agency or instrumentality thereof, if the Manager believes such","page_number":166,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"e6749656-280f-4ea3-8976-73d52c286ec7","block_type":"box","text":"securities to pay interest excludable from gross income for purposes of U.S. federal income tax and","page_number":166,"box":{"x":116,"y":134,"width":744,"height":12}},{"id":"b8f3969c-b533-4800-8c06-5d64898b5d93","block_type":"box","text":"state and local income taxes of the designated state and/or state and local personal property taxes of","page_number":166,"box":{"x":116,"y":149,"width":757,"height":12}},{"id":"c768f322-339c-4e59-b080-e0324c380417","block_type":"box","text":"the designated state (“Non-Municipal Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities","page_number":166,"box":{"x":116,"y":165,"width":756,"height":12}},{"id":"18283d0e-7f24-488c-bce9-d334ac75f4da","block_type":"box","text":"could include trust certificates or other instruments evidencing interest in one or more long-term","page_number":166,"box":{"x":116,"y":180,"width":714,"height":12}},{"id":"5ddfac64-072f-42e1-9f37-b3936675e916","block_type":"box","text":"municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":166,"box":{"x":117,"y":196,"width":765,"height":12}},{"id":"7d2ec22b-b72a-46d8-b480-2ba99c8e1251","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by","page_number":166,"box":{"x":117,"y":211,"width":760,"height":12}},{"id":"d59a1db2-cbb3-4713-b2cf-cbdc59c70acc","block_type":"box","text":"applicable law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income","page_number":166,"box":{"x":116,"y":227,"width":754,"height":12}},{"id":"67a8fb1e-ce8f-41b6-b42f-477e0f4083e8","block_type":"box","text":"for U.S. federal income tax purposes will be considered “Municipal Bonds” for purposes of a Municipal","page_number":166,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"137a53ad-80b9-4115-9da4-e68c47380dbb","block_type":"box","text":"Fund’s investment objective and policies. Non-Municipal Tax-Exempt Securities that pay interest","page_number":166,"box":{"x":117,"y":258,"width":720,"height":12}},{"id":"54a45ab8-5e4a-45b0-8f08-60ce7e3ba9da","block_type":"box","text":"excludable from gross income for purposes of U.S. federal income tax and state and local income","page_number":166,"box":{"x":116,"y":273,"width":730,"height":12}},{"id":"290b6c9c-cedc-4f80-8498-afe082e2a5ba","block_type":"box","text":"taxes of a designated state and/or allow the value of a Fund’s shares to be exempt from state and local","page_number":166,"box":{"x":116,"y":289,"width":771,"height":12}},{"id":"2246488d-d25c-4bfd-a1c2-237ef6aa2381","block_type":"box","text":"personal property taxes of that state will be considered “State Municipal Bonds” for purposes of the","page_number":166,"box":{"x":117,"y":304,"width":739,"height":12}},{"id":"a056da30-7528-41c0-8eef-b9969ed46b7a","block_type":"box","text":"investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":166,"box":{"x":117,"y":320,"width":724,"height":12}},{"id":"1c16a89a-c9c9-444d-a23d-4f5b8b4ae932","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond","page_number":166,"box":{"x":117,"y":335,"width":724,"height":12}},{"id":"ea0d787e-272b-4158-8ee5-d06ba0643e23","block_type":"box","text":"Fund.","page_number":166,"box":{"x":117,"y":351,"width":46,"height":9}},{"id":"e1eae1b2-fc1e-4c82-9794-a464b4492931","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":166,"box":{"x":116,"y":380,"width":519,"height":12}},{"id":"39b8e31d-fa2e-4fb0-8aae-30c6b9190e6a","block_type":"box","text":"The risks and special","page_number":166,"box":{"x":636,"y":380,"width":168,"height":12}},{"id":"ddc94419-48cd-4699-b757-89d1615a70b5","block_type":"box","text":"considerations involved in investment in Municipal Bonds vary with the types of instruments being","page_number":166,"box":{"x":116,"y":395,"width":729,"height":12}},{"id":"6e91bda6-2529-44ca-9771-ad5b6874e05b","block_type":"box","text":"acquired. Investments in Non-Municipal Tax-Exempt Securities may present similar risks, depending","page_number":166,"box":{"x":116,"y":411,"width":751,"height":12}},{"id":"157b3a0e-1df7-49de-ad41-ba3ca51ca671","block_type":"box","text":"on the particular product. Certain municipal instruments in which a Fund may invest may be","page_number":166,"box":{"x":116,"y":426,"width":685,"height":12}},{"id":"c06ce00c-91ef-4d17-8443-1009b61685a1","block_type":"box","text":"characterized as derivatives.","page_number":166,"box":{"x":116,"y":442,"width":218,"height":9}},{"id":"9d6eebe1-912e-45fb-8083-72dcb146100d","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a","page_number":166,"box":{"x":116,"y":471,"width":768,"height":12}},{"id":"27f49134-6ae2-49cc-bad4-104895c3ccee","block_type":"box","text":"result of legislation or litigation, including legislation or litigation that changes the taxation of Municipal","page_number":166,"box":{"x":117,"y":487,"width":757,"height":12}},{"id":"44cad348-bb98-44f9-8683-e65404547f02","block_type":"box","text":"Bonds or the rights of Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are","page_number":166,"box":{"x":117,"y":502,"width":764,"height":12}},{"id":"388bf7c9-2b91-4ee2-9cd0-c82795999ee1","block_type":"box","text":"rare and certain provisions of the U.S. Bankruptcy Code governing such bankruptcies are unclear.","page_number":166,"box":{"x":117,"y":518,"width":732,"height":12}},{"id":"f2189bdf-167d-495a-abd4-9d42ef64a5c4","block_type":"box","text":"Further, the application of state law to Municipal Bond issuers could produce varying results among the","page_number":166,"box":{"x":117,"y":533,"width":770,"height":12}},{"id":"47f3f52b-2338-49d0-a1a5-f4b1cf46dd20","block_type":"box","text":"states or among Municipal Bond issuers within a state. These uncertainties could have a significant","page_number":166,"box":{"x":116,"y":549,"width":742,"height":12}},{"id":"95a6d7c5-41e2-4bc0-abc9-d6771c653170","block_type":"box","text":"impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":166,"box":{"x":117,"y":564,"width":513,"height":12}},{"id":"71ef2035-3a4b-4a9c-a7ab-04fc5f22161a","block_type":"box","text":"Description of Municipal Bonds.","page_number":166,"box":{"x":116,"y":593,"width":240,"height":12}},{"id":"7e187910-f978-43c0-8da8-fb2dd3b6192a","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including","page_number":166,"box":{"x":117,"y":616,"width":757,"height":12}},{"id":"069dc5a7-6d25-4d97-beeb-4872d670086c","block_type":"box","text":"the construction of a wide range of public facilities, refunding of outstanding obligations and obtaining","page_number":166,"box":{"x":116,"y":631,"width":756,"height":12}},{"id":"9a8f4988-359e-4795-9cd6-c6f5a35b1479","block_type":"box","text":"funds for general operating expenses and loans to other public institutions and facilities. In addition,","page_number":166,"box":{"x":116,"y":647,"width":744,"height":12}},{"id":"0348ff1a-1022-4a15-836b-8b11ac34a8cf","block_type":"box","text":"certain types of bonds are issued by or on behalf of public authorities to finance various privately","page_number":166,"box":{"x":116,"y":662,"width":716,"height":12}},{"id":"654584dd-55f0-4455-9760-2f5b1e289ff1","block_type":"box","text":"owned or operated facilities, including certain facilities for the local furnishing of electric energy or gas,","page_number":166,"box":{"x":116,"y":678,"width":757,"height":12}},{"id":"981ba674-2e61-4e03-b630-cd13c3dec18f","block_type":"box","text":"sewage facilities, solid waste disposal facilities and other specialized facilities. Such obligations are","page_number":166,"box":{"x":116,"y":693,"width":735,"height":12}},{"id":"387be507-0db9-4429-bfcf-3ea9523dc5fd","block_type":"box","text":"included within the term Municipal Bonds if the interest paid thereon is excluded from gross income for","page_number":166,"box":{"x":117,"y":709,"width":760,"height":12}},{"id":"2a158b64-45a8-485b-921b-21645a4f0ba2","block_type":"box","text":"U.S. federal income tax purposes and any applicable state and local taxes. Other types of private","page_number":166,"box":{"x":117,"y":724,"width":721,"height":12}},{"id":"0eeaf8be-975f-424a-aa55-109c836a4b40","block_type":"box","text":"activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":166,"box":{"x":116,"y":740,"width":722,"height":12}},{"id":"9d01944f-c5f1-4f11-81a8-8809bf92e0f0","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the","page_number":166,"box":{"x":117,"y":755,"width":727,"height":12}},{"id":"60bd360a-f6ab-4846-a5ae-c63d47661253","block_type":"box","text":"current U.S. federal tax laws place substantial limitations on the size of such issues. The interest on","page_number":166,"box":{"x":116,"y":771,"width":739,"height":12}},{"id":"859e4867-41a2-44e1-a75e-f92f702de2f0","block_type":"box","text":"Municipal Bonds may bear a fixed rate or be payable at a variable or floating rate. The two principal","page_number":166,"box":{"x":117,"y":786,"width":736,"height":12}},{"id":"dfa85e9d-1d18-43f3-a4b7-add924603fc8","block_type":"box","text":"classifications of Municipal Bonds are “general obligation” and “revenue” or “special obligation” bonds,","page_number":166,"box":{"x":116,"y":802,"width":756,"height":12}},{"id":"71e7ff36-2edd-401b-813c-0ee5ffc26ca7","block_type":"box","text":"which latter category includes private activity bonds (“PABs”) (or “industrial development bonds” under","page_number":166,"box":{"x":116,"y":817,"width":760,"height":12}},{"id":"1b23bfad-d33d-47f4-b358-9cc76286558d","block_type":"box","text":"pre-1986 law).","page_number":166,"box":{"x":117,"y":833,"width":111,"height":12}},{"id":"7f32f68c-f9e3-4c71-a864-63f7aaa469e8","block_type":"box","text":"General Obligation Bonds.","page_number":166,"box":{"x":117,"y":862,"width":194,"height":12}},{"id":"9ed4ac6e-7804-4b3c-b84b-35f60cf44ecd","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith,","page_number":166,"box":{"x":313,"y":862,"width":565,"height":12}},{"id":"cfffd63b-a132-43b6-b47d-4926ad8a43f4","block_type":"box","text":"credit and taxing power for the payment of principal and interest. The taxing power of any","page_number":166,"box":{"x":116,"y":878,"width":668,"height":12}},{"id":"8239edba-1ed1-45f3-a867-470efd5b208e","block_type":"box","text":"II-72","page_number":166,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"4cc67090-ae9d-41d7-9d34-375275593792","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":166,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"af62cf1e-f5e1-48f5-ac51-b0efa60b1bac","block_type":"box","text":"governmental entity may be limited, however, by provisions of its state constitution or laws, and an","page_number":167,"box":{"x":116,"y":87,"width":735,"height":12}},{"id":"e6332991-f9a8-48f6-ae63-0ff45d61ccb8","block_type":"box","text":"entity’s creditworthiness will depend on many factors, including potential erosion of its tax base due to","page_number":167,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"3b6cb191-9a4d-4d70-9964-c203f1d02f80","block_type":"box","text":"population declines, natural disasters, declines in the state’s industrial base or inability to attract new","page_number":167,"box":{"x":117,"y":118,"width":750,"height":12}},{"id":"5b493a21-eb23-487b-97e8-66cae4aeb8df","block_type":"box","text":"industries, economic limits on the ability to tax without eroding the tax base, state legislative proposals","page_number":167,"box":{"x":117,"y":134,"width":762,"height":12}},{"id":"34953dae-4bec-42cb-b939-bb73cd99b9fb","block_type":"box","text":"or voter initiatives to limit ad valorem real property taxes and the extent to which the entity relies on","page_number":167,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"2daeb9d3-484d-4b41-bf0a-1cc3db83c580","block_type":"box","text":"federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":167,"box":{"x":116,"y":165,"width":738,"height":12}},{"id":"fbecb136-9bd3-4d76-b406-64196cc482a2","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest","page_number":167,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"9eac572f-a3c8-4d5c-8494-02f38032a044","block_type":"box","text":"and the repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":167,"box":{"x":116,"y":196,"width":717,"height":12}},{"id":"5e74af78-823b-4709-87b8-ad217d771aaa","block_type":"box","text":"Revenue Bonds.","page_number":167,"box":{"x":116,"y":227,"width":122,"height":9}},{"id":"ee3c00b4-979f-4f27-a084-0ad6f6732fc0","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility","page_number":167,"box":{"x":240,"y":227,"width":634,"height":12}},{"id":"08a27dd6-8477-41f4-a3f2-4c214f053a3d","block_type":"box","text":"or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific","page_number":167,"box":{"x":116,"y":242,"width":720,"height":12}},{"id":"72e469ba-6583-4621-ac72-b94e2b0e1cdd","block_type":"box","text":"revenue source such as payments from the user of the facility being financed; accordingly, the timely","page_number":167,"box":{"x":117,"y":258,"width":752,"height":12}},{"id":"dee431af-a358-448b-bf00-f3b459e682bf","block_type":"box","text":"payment of interest and the repayment of principal in accordance with the terms of the revenue or","page_number":167,"box":{"x":117,"y":273,"width":729,"height":12}},{"id":"2ccd84e4-128d-4f6d-98bc-0258cf325927","block_type":"box","text":"special obligation bond is a function of the economic viability of such facility or such revenue source.","page_number":167,"box":{"x":116,"y":289,"width":749,"height":12}},{"id":"2501f836-08e1-4258-9049-4c56458b95a6","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi","page_number":167,"box":{"x":117,"y":320,"width":730,"height":12}},{"id":"d5bdd415-8a46-467a-b995-f3b8976e393d","block_type":"box","text":"family housing involve special risks in addition to those associated with municipal bonds generally,","page_number":167,"box":{"x":116,"y":335,"width":735,"height":12}},{"id":"68d49177-68c7-4728-8044-1cf88e20a4d9","block_type":"box","text":"including that the underlying properties may not generate sufficient income to pay expenses and","page_number":167,"box":{"x":117,"y":351,"width":718,"height":12}},{"id":"d131069a-cbfe-420f-a49c-24ae83f4656a","block_type":"box","text":"interest costs. Such bonds are generally non-recourse against the property owner, may be junior to the","page_number":167,"box":{"x":117,"y":366,"width":768,"height":12}},{"id":"38d0173a-2ed8-421d-aa15-b155d5ec2005","block_type":"box","text":"rights of others with an interest in the properties, may pay interest that changes based in part on the","page_number":167,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"8f4f639f-c75f-4e11-8eb0-5058fbfebfb1","block_type":"box","text":"financial performance of the property, may be prepayable without penalty and may be used to finance","page_number":167,"box":{"x":116,"y":397,"width":760,"height":12}},{"id":"3b6d86cd-4560-4f0a-b531-5702bf553a05","block_type":"box","text":"the construction of housing developments which, until completed and rented, do not generate income","page_number":167,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"74e0a33e-0b73-46f3-b625-8a72a9fb389b","block_type":"box","text":"to pay interest. Increases in interest rates payable on senior obligations may make it more difficult for","page_number":167,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"ab075c8b-2e8a-4662-af2a-e153b8e69fc8","block_type":"box","text":"issuers to meet payment obligations on subordinated bonds.","page_number":167,"box":{"x":117,"y":444,"width":452,"height":12}},{"id":"68691297-c04c-4f77-9861-fd20fc193bc7","block_type":"box","text":"PABs.","page_number":167,"box":{"x":116,"y":475,"width":45,"height":9}},{"id":"cc33b6c3-fa34-4920-8bb9-4f080b3d673f","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public","page_number":167,"box":{"x":162,"y":475,"width":666,"height":12}},{"id":"e4e8196c-d8a5-4c68-8106-d474ad978d84","block_type":"box","text":"authorities to provide funds, usually through a loan or lease arrangement, to a private entity for the","page_number":167,"box":{"x":116,"y":490,"width":735,"height":12}},{"id":"657468d2-1bb9-4697-b934-9861446c7f0a","block_type":"box","text":"purpose of financing construction or improvement of a facility to be used by the entity. Such bonds are","page_number":167,"box":{"x":117,"y":506,"width":762,"height":12}},{"id":"b28c5afd-18e3-4251-baf8-7db505ed916f","block_type":"box","text":"secured primarily by revenues derived from loan repayments or lease payments due from the entity,","page_number":167,"box":{"x":116,"y":521,"width":747,"height":12}},{"id":"dedbefc4-176f-4f1b-9dd7-d3763017e615","block_type":"box","text":"which may or may not be guaranteed by a parent company or otherwise secured. PABs generally are","page_number":167,"box":{"x":116,"y":537,"width":758,"height":12}},{"id":"21f554b5-5fd4-4a9c-b910-970281cf2769","block_type":"box","text":"not secured by a pledge of the taxing power of the issuer of such bonds. Therefore, an investor should","page_number":167,"box":{"x":117,"y":552,"width":764,"height":12}},{"id":"bc87141e-403f-42c7-91cc-7a4cf2eb2e5b","block_type":"box","text":"understand that repayment of such bonds generally depends on the revenues of a private entity and be","page_number":167,"box":{"x":117,"y":568,"width":771,"height":12}},{"id":"cf2d1a71-754c-4fb1-9f4d-14891ed71457","block_type":"box","text":"aware of the risks that such an investment may entail. The continued ability of an entity to generate","page_number":167,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"145d8bb9-0c83-4d59-a77b-1c47f00138c1","block_type":"box","text":"sufficient revenues for the payment of principal and interest on such bonds will be affected by many","page_number":167,"box":{"x":116,"y":599,"width":744,"height":12}},{"id":"e87b0f1d-e144-4601-9366-0346b20699e3","block_type":"box","text":"factors including the size of the entity, its capital structure, demand for its products or services,","page_number":167,"box":{"x":116,"y":614,"width":707,"height":12}},{"id":"0a5fdd76-db0e-41d3-894c-18cc2ebadbf8","block_type":"box","text":"competition, general economic conditions, government regulation and the entity’s dependence on","page_number":167,"box":{"x":116,"y":630,"width":728,"height":12}},{"id":"8bdd2d69-9f1c-4a7c-a6a5-9377a6241a7e","block_type":"box","text":"revenues for the operation of the particular facility being financed.","page_number":167,"box":{"x":117,"y":645,"width":491,"height":12}},{"id":"d1a043db-8330-4a7e-9c15-df8bd7930355","block_type":"box","text":"Moral Obligation Bonds.","page_number":167,"box":{"x":116,"y":676,"width":178,"height":12}},{"id":"947aa983-399f-402e-9993-858e28050cc3","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public","page_number":167,"box":{"x":301,"y":676,"width":523,"height":12}},{"id":"2ecc46b2-5ae7-4a7c-8194-ea25421ca9b4","block_type":"box","text":"authorities. If an issuer of moral obligation bonds is unable to meet its obligations, the repayment of","page_number":167,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"0bf6916a-2815-4734-a2fe-48d75f99f995","block_type":"box","text":"such bonds becomes a moral commitment but not a legal obligation of the state or municipality that","page_number":167,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"dee7c463-b046-47d3-ace5-e2101c13f314","block_type":"box","text":"created the special purpose public authority that issued the bonds.","page_number":167,"box":{"x":116,"y":723,"width":492,"height":12}},{"id":"f9d1b022-b539-4c77-9174-675d06c55b84","block_type":"box","text":"Municipal Notes.","page_number":167,"box":{"x":116,"y":754,"width":122,"height":12}},{"id":"522b0941-c017-4fd3-906a-1dc421bf9432","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim","page_number":167,"box":{"x":246,"y":754,"width":636,"height":12}},{"id":"64dd8a37-845e-4510-a83f-71cc0a4ac32e","block_type":"box","text":"financing in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the","page_number":167,"box":{"x":116,"y":769,"width":737,"height":12}},{"id":"b8092339-a3be-4f65-97b1-c416fb562491","block_type":"box","text":"anticipated proceeds, repayment on the note may be delayed or the note may not be fully repaid, and a","page_number":167,"box":{"x":116,"y":785,"width":766,"height":12}},{"id":"08c63da4-8943-41f8-997e-a3a0f4199869","block_type":"box","text":"Fund may lose money.","page_number":167,"box":{"x":117,"y":800,"width":167,"height":12}},{"id":"03b86345-ec75-4d60-ad7b-86938024a931","block_type":"box","text":"Municipal Commercial Paper.","page_number":167,"box":{"x":116,"y":831,"width":218,"height":12}},{"id":"1934a27f-f7ac-4b6f-af70-3568ee0a756d","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet","page_number":167,"box":{"x":335,"y":831,"width":539,"height":12}},{"id":"e76aff39-a19c-419e-89db-4da6f431b4e6","block_type":"box","text":"short-term financing needs. The lack of security presents some risk of loss to a Fund since, in the","page_number":167,"box":{"x":116,"y":847,"width":728,"height":12}},{"id":"8147938c-6d00-4020-aaee-cf9bc996d018","block_type":"box","text":"event of an issuer’s bankruptcy, unsecured creditors are repaid only after the secured creditors out of","page_number":167,"box":{"x":116,"y":862,"width":757,"height":12}},{"id":"4be521c5-a41c-46a5-b8ba-cebb84348eb1","block_type":"box","text":"the assets, if any, that remain.","page_number":167,"box":{"x":116,"y":878,"width":229,"height":12}},{"id":"934b5128-f134-4fb9-b9cc-4224d0a770e0","block_type":"box","text":"II-73","page_number":167,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"16ff79dc-b856-4dec-8560-2cb84814b730","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":167,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c1cb8dc9-5a2c-4ca9-a4c9-d437c1961549","block_type":"box","text":"Municipal Lease Obligations.","page_number":168,"box":{"x":116,"y":87,"width":213,"height":12}},{"id":"d7c6b1c3-b773-49ed-85ba-75ee2a8276db","block_type":"box","text":"Also included within the general category of Municipal Bonds are","page_number":168,"box":{"x":331,"y":87,"width":491,"height":12}},{"id":"7ee63cfc-3f57-42b0-b2e0-24c10845c3c7","block_type":"box","text":"certificates of participation (“COPs”) issued by government authorities or entities to finance the","page_number":168,"box":{"x":116,"y":102,"width":706,"height":13}},{"id":"d132412e-7fe5-4d7b-a84f-bbd69f94b9e1","block_type":"box","text":"acquisition or construction of equipment, land and/or facilities. The COPs represent participations in a","page_number":168,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"46b6ed9e-0c95-43e6-882b-742ad59082c9","block_type":"box","text":"lease, an installment purchase contract or a conditional sales contract (hereinafter collectively called","page_number":168,"box":{"x":117,"y":134,"width":748,"height":12}},{"id":"3b11a19b-1268-4556-8db8-500508693d6a","block_type":"box","text":"“lease obligations”) relating to such equipment, land or facilities. Municipal leases, like other municipal","page_number":168,"box":{"x":116,"y":149,"width":761,"height":12}},{"id":"cef18ee4-bff8-49a2-8e52-1bf9178d603b","block_type":"box","text":"debt obligations, are subject to the risk of non-payment. Although lease obligations do not constitute","page_number":168,"box":{"x":116,"y":165,"width":747,"height":12}},{"id":"3795e4be-7a3d-4592-a787-1385fa8716aa","block_type":"box","text":"general obligations of the issuer for which the issuer’s unlimited taxing power is pledged, a lease","page_number":168,"box":{"x":116,"y":180,"width":721,"height":12}},{"id":"19dfee4d-0e5f-4f75-9dde-733fdb387b92","block_type":"box","text":"obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":168,"box":{"x":116,"y":196,"width":716,"height":12}},{"id":"5aaea7d3-b9d1-4a02-8acf-23f5cbce66d2","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain","page_number":168,"box":{"x":117,"y":211,"width":631,"height":12}},{"id":"4366dfac-4546-43d7-ac4c-232e532b9a51","block_type":"box","text":"“non-appropriation” clauses, which provide that the issuer has no obligation to make lease or","page_number":168,"box":{"x":116,"y":227,"width":693,"height":12}},{"id":"b01f3743-ac39-4b91-9964-69ab3ff09014","block_type":"box","text":"installment purchase payments in future years unless money is appropriated for such purpose on a","page_number":168,"box":{"x":117,"y":242,"width":739,"height":12}},{"id":"f4d0e3b5-796c-43ec-94f1-f12ec6994bb9","block_type":"box","text":"yearly basis. Although “non-appropriation” lease obligations are secured by the leased property,","page_number":168,"box":{"x":116,"y":258,"width":716,"height":12}},{"id":"840b92ec-bf35-4543-8c98-007a8d632970","block_type":"box","text":"disposition of the property in the event of foreclosure might prove difficult. These securities represent a","page_number":168,"box":{"x":116,"y":273,"width":767,"height":12}},{"id":"7235fd8e-cda6-40bf-8d17-d508b8975d53","block_type":"box","text":"type of financing that has not yet developed the depth of marketability associated with more","page_number":168,"box":{"x":116,"y":289,"width":685,"height":12}},{"id":"b5a88268-2e90-4f01-8528-545732ec069f","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":168,"box":{"x":116,"y":304,"width":596,"height":12}},{"id":"61acf654-91a7-4d4f-9e30-fe015a5b4675","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in","page_number":168,"box":{"x":116,"y":335,"width":769,"height":12}},{"id":"165cb2db-024f-4e64-8485-e807faf5a7e5","block_type":"box","text":"general economic downturns and as relative governmental cost burdens are allocated and reallocated","page_number":168,"box":{"x":116,"y":351,"width":762,"height":12}},{"id":"312a4465-8679-4898-98db-5eb895d1b07c","block_type":"box","text":"among federal, state and local governmental units. Such non-payment would result in a reduction of","page_number":168,"box":{"x":116,"y":366,"width":746,"height":12}},{"id":"290dc6b7-06cc-4709-99b8-d8f132f81ba2","block_type":"box","text":"income to a Fund and could result in a","page_number":168,"box":{"x":117,"y":382,"width":289,"height":9}},{"id":"115bb1bf-1bc7-4492-87ba-b3bf07c1d0da","block_type":"box","text":"reduction in the value of the municipal lease experiencing","page_number":168,"box":{"x":407,"y":382,"width":431,"height":12}},{"id":"cf529d85-b716-4dce-9315-d50244be394d","block_type":"box","text":"non-payment and a potential decrease in the NAV of a Fund. Issuers of municipal securities might","page_number":168,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"e4473618-0224-49ec-836b-c04f490c118e","block_type":"box","text":"seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, a Fund could","page_number":168,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"3e368076-cbb3-46f1-96fb-822a06ac4c21","block_type":"box","text":"experience delays and limitations with respect to the collection of principal and interest on such","page_number":168,"box":{"x":116,"y":428,"width":711,"height":12}},{"id":"64223e45-8c37-4837-9325-ca34de797126","block_type":"box","text":"municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest","page_number":168,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"967d9a86-6dcb-4a4b-9378-34e696a04c0b","block_type":"box","text":"to which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might","page_number":168,"box":{"x":116,"y":459,"width":740,"height":12}},{"id":"24136cc2-8853-4fd5-9377-cec0bd9b6782","block_type":"box","text":"take possession of and manage the assets securing the issuer’s obligations on such securities, which","page_number":168,"box":{"x":116,"y":475,"width":758,"height":12}},{"id":"ea900291-b5ea-4b5d-b008-ac10ab63f9d5","block_type":"box","text":"may increase a Fund’s operating expenses and adversely affect the NAV of a Fund. When the lease","page_number":168,"box":{"x":117,"y":490,"width":749,"height":12}},{"id":"43017262-418e-4b06-9e9b-af30cf342336","block_type":"box","text":"contains a non-appropriation clause, however, the failure to pay would not be a default and a Fund","page_number":168,"box":{"x":116,"y":506,"width":737,"height":12}},{"id":"74ec1657-0353-4381-bcb1-7558f725a244","block_type":"box","text":"would not have the right to take possession of the assets. Any income derived from a Fund’s","page_number":168,"box":{"x":116,"y":521,"width":692,"height":12}},{"id":"3ed920ba-057e-47f4-8f99-e5fed2efd3b1","block_type":"box","text":"ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s intention to qualify","page_number":168,"box":{"x":116,"y":537,"width":765,"height":12}},{"id":"008c5bf8-3a6f-4264-8c15-c9f5806b35c3","block_type":"box","text":"as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":168,"box":{"x":116,"y":552,"width":717,"height":12}},{"id":"de81e04f-646f-4292-aeb0-94403a42486b","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a","page_number":168,"box":{"x":116,"y":568,"width":765,"height":12}},{"id":"966e75f3-d54a-4148-840c-3dffc5ccd819","block_type":"box","text":"Fund is subject to certain limitations on its investments and on the nature of its income.","page_number":168,"box":{"x":117,"y":583,"width":650,"height":12}},{"id":"11e4b5e3-80dc-4e87-be36-62d0802bf68e","block_type":"box","text":"Tender Option Bonds.","page_number":168,"box":{"x":118,"y":614,"width":161,"height":12}},{"id":"643bfd73-3bb1-4c31-ab68-61b8c3d76357","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option","page_number":168,"box":{"x":280,"y":614,"width":596,"height":12}},{"id":"80a37cd9-e9ee-4bca-b54e-845f73c8640e","block_type":"box","text":"bonds (“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in","page_number":168,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"51f9b5f5-bc4b-4660-ba85-d378614fcec4","block_type":"box","text":"which the Funds will invest pay interest or income that, in the opinion of counsel to the issuer, is","page_number":168,"box":{"x":116,"y":645,"width":715,"height":12}},{"id":"9494fa80-29a6-4491-9000-0f77c702260e","block_type":"box","text":"exempt from regular U.S. federal income tax. BlackRock will not conduct its own analysis of the tax","page_number":168,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"76188a07-f65d-40e6-b7d8-b66bdec725af","block_type":"box","text":"status of the interest or income paid by TOB Residuals held by the Funds, but will rely on the opinion of","page_number":168,"box":{"x":116,"y":676,"width":767,"height":12}},{"id":"23bb018d-42ad-4146-9141-616045b7f9a1","block_type":"box","text":"counsel to the issuer. Although volatile, TOB Residuals typically offer the potential for yields exceeding","page_number":168,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"5774a9b7-7c3c-413c-91fd-343a7b355269","block_type":"box","text":"the yields available on fixed rate Municipal Bonds with comparable credit quality. The Funds may","page_number":168,"box":{"x":116,"y":707,"width":720,"height":12}},{"id":"f1759c5f-1448-466e-b2da-33c246579f5d","block_type":"box","text":"invest in TOB Residuals for the purpose of using economic leverage.","page_number":168,"box":{"x":117,"y":723,"width":509,"height":12}},{"id":"f75cd2ba-6aaf-4ff8-a3bd-66c23109676f","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of","page_number":168,"box":{"x":116,"y":754,"width":719,"height":12}},{"id":"44440bf2-5fc8-4b0a-9745-c96954605344","block_type":"box","text":"holding Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically","page_number":168,"box":{"x":117,"y":769,"width":719,"height":12}},{"id":"375a3574-2a7f-4377-b957-76456e2a4673","block_type":"box","text":"issues two classes of beneficial interests: short-term floating rate interests (“TOB Floaters”), which are","page_number":168,"box":{"x":117,"y":785,"width":756,"height":12}},{"id":"2692234e-fe7e-46e5-8f47-dcab98aab9b9","block_type":"box","text":"sold to third-party investors, and TOB Residuals, which are generally issued to the fund(s) that","page_number":168,"box":{"x":116,"y":800,"width":701,"height":12}},{"id":"8e8b00a6-419a-446f-b889-01f16e2abb6c","block_type":"box","text":"transferred Municipal Bonds to the TOB Trust. The Funds may invest in both TOB Floaters and TOB","page_number":168,"box":{"x":116,"y":816,"width":745,"height":12}},{"id":"158ef536-32d3-432a-af07-d9d5f53605aa","block_type":"box","text":"Residuals. TOB Floaters may have first priority on the cash flow from the Municipal Bonds held by the","page_number":168,"box":{"x":117,"y":831,"width":759,"height":12}},{"id":"5578ab52-77a0-42ed-a943-590101a0a4ab","block_type":"box","text":"TOB Trust and are enhanced with a liquidity support arrangement from a third-party Liquidity Provider","page_number":168,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"15d8d84a-1af5-414b-b8a1-ac19c405bc95","block_type":"box","text":"(defined below) which allows holders to tender their position at par (plus accrued interest). A Fund, as","page_number":168,"box":{"x":117,"y":862,"width":758,"height":12}},{"id":"39db20ce-48a4-44b7-a58b-c20428e206aa","block_type":"box","text":"a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes","page_number":168,"box":{"x":116,"y":878,"width":759,"height":12}},{"id":"efcc3308-0017-4f37-9bc0-c7eff8588d23","block_type":"box","text":"II-74","page_number":168,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b7f8efc5-6dd6-49d9-88d2-0e7d82eecd4d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":168,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4263886f-54d8-4f7f-ac03-2414608a57d8","block_type":"box","text":"the Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the","page_number":169,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"fc66068f-9562-416e-82e9-240a73b9d1f3","block_type":"box","text":"TOB Floaters, less certain transaction costs, and typically will invest the cash to purchase additional","page_number":169,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"78141fda-e512-4116-a8e2-56678f3e3dad","block_type":"box","text":"Municipal Bonds or other investments permitted by its investment policies. If a Fund ever purchases all","page_number":169,"box":{"x":117,"y":118,"width":767,"height":12}},{"id":"01321c9b-2419-4be3-ba1d-7995742396e3","block_type":"box","text":"or a portion of the TOB Floaters sold by the TOB Trust, it may surrender those TOB Floaters together","page_number":169,"box":{"x":116,"y":134,"width":758,"height":12}},{"id":"b6725874-14d7-4804-812d-7845d860d9cd","block_type":"box","text":"with a proportionate amount of TOB Residuals to the TOB Trust in exchange for a proportionate","page_number":169,"box":{"x":116,"y":149,"width":717,"height":12}},{"id":"90b3d3e5-f041-4bc6-891f-efaf00deb35f","block_type":"box","text":"amount of the Municipal Bonds owned by the TOB Trust.","page_number":169,"box":{"x":116,"y":165,"width":427,"height":12}},{"id":"03e90fd6-da68-4c2c-b947-00ed82311f6e","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has","page_number":169,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"6975c893-7e85-441e-b0de-ba11ad5fb7f9","block_type":"box","text":"contributed Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust,","page_number":169,"box":{"x":116,"y":211,"width":752,"height":12}},{"id":"d29a5ec1-efae-4f20-a0be-c0f9c92fa7fc","block_type":"box","text":"the economic rights and obligations under the TOB Residual will generally be shared among the funds","page_number":169,"box":{"x":116,"y":227,"width":764,"height":12}},{"id":"c61483f6-8af4-4716-8e92-0323cd09ba3c","block_type":"box","text":"ratably in proportion to their participation in the TOB Trust.","page_number":169,"box":{"x":117,"y":242,"width":437,"height":12}},{"id":"3b1f250e-71d9-4cdd-9ab2-79ee16b3ecb9","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typi","page_number":169,"box":{"x":116,"y":273,"width":380,"height":12}},{"id":"aa16f18d-504c-4834-8833-300ca6a842c9","block_type":"box","text":"cally are high grade Municipal Bonds. In certain","page_number":169,"box":{"x":497,"y":273,"width":350,"height":12}},{"id":"af578106-1312-46ce-ac4a-fcfaaf035988","block_type":"box","text":"cases, when Municipal Bonds transferred are lowe","page_number":169,"box":{"x":116,"y":289,"width":367,"height":12}},{"id":"d030180b-19c1-4f8e-aa8d-2cd981f2eaa7","block_type":"box","text":"r grade Municipal Bonds, the TOB Trust transaction","page_number":169,"box":{"x":485,"y":289,"width":379,"height":12}},{"id":"34141209-4cd3-4655-b506-21afeebcbebc","block_type":"box","text":"includes a credit enhancement feature that provides fo","page_number":169,"box":{"x":117,"y":304,"width":395,"height":12}},{"id":"844b2397-d092-4311-9291-a88d06f73156","block_type":"box","text":"r the timely payment of principal and interest on","page_number":169,"box":{"x":513,"y":304,"width":349,"height":12}},{"id":"612b040e-6759-42e7-85c4-aa233fb7720c","block_type":"box","text":"the bonds to the TOB Trust by a credit enhancement","page_number":169,"box":{"x":116,"y":320,"width":388,"height":12}},{"id":"30ebe5aa-7ff8-49f3-a4f9-742d8c632b8a","block_type":"box","text":"provider. The TOB Trust would be responsible for","page_number":169,"box":{"x":505,"y":320,"width":364,"height":12}},{"id":"802c1307-aa3c-4fa2-bca5-324abb2a2041","block_type":"box","text":"the payment of the credit enhancem","page_number":169,"box":{"x":116,"y":335,"width":262,"height":12}},{"id":"fdd54e9b-c0f1-4a4d-a6b0-9566316a2570","block_type":"box","text":"ent fee and a Fund, as a TOB Residual holder, would be responsible","page_number":169,"box":{"x":379,"y":335,"width":504,"height":12}},{"id":"0d68f482-79eb-41ed-ac3b-9058dbb7d5cf","block_type":"box","text":"for reimbursement of any payments of principal","page_number":169,"box":{"x":116,"y":351,"width":348,"height":12}},{"id":"6c77e968-ed48-44b4-8bf7-94445c3a8715","block_type":"box","text":"and interest made by the credit enhancement provider.","page_number":169,"box":{"x":464,"y":351,"width":403,"height":12}},{"id":"051c829c-15f2-4b8e-9b60-97091be865d9","block_type":"box","text":"The TOB Residuals held by a Fund generally provide t","page_number":169,"box":{"x":116,"y":382,"width":396,"height":12}},{"id":"08827d82-26bb-4feb-859b-12bc4ab1252d","block_type":"box","text":"he Fund with the right to cause the holders of a","page_number":169,"box":{"x":513,"y":382,"width":346,"height":12}},{"id":"0f679c62-faf3-4013-87df-fc9ff868693d","block_type":"box","text":"proportional share of the TOB Floaters","page_number":169,"box":{"x":117,"y":397,"width":284,"height":12}},{"id":"23bcf195-e491-47be-94db-ec226930787c","block_type":"box","text":"to tender their notes to the TOB Trust at par plus accrued interest.","page_number":169,"box":{"x":401,"y":397,"width":485,"height":12}},{"id":"983b5189-ce7b-40f4-bdb4-acb9dd73e3e3","block_type":"box","text":"Thereafter, the Fund may withdraw a corresponding share","page_number":169,"box":{"x":116,"y":413,"width":428,"height":12}},{"id":"e2eb8cbd-46fe-4244-8d14-dcff0015cde2","block_type":"box","text":"of the Municipal Bonds from the TOB Trust.","page_number":169,"box":{"x":545,"y":413,"width":321,"height":12}},{"id":"c5f142a2-e928-4e57-8426-c1999d94d9c5","block_type":"box","text":"This transaction, in effect, creates exposure for the Fund","page_number":169,"box":{"x":116,"y":428,"width":416,"height":12}},{"id":"dbf1537a-6e88-472e-8946-3e8480ae02fc","block_type":"box","text":"to the entire return of the Municipal Bonds in the","page_number":169,"box":{"x":532,"y":428,"width":355,"height":12}},{"id":"321686e4-da26-4e4f-a680-2cf78484b63b","block_type":"box","text":"TOB Trust, with a net cash investment by the Fund that","page_number":169,"box":{"x":116,"y":444,"width":403,"height":12}},{"id":"b6e54c8a-c90a-4f29-813c-da96618f7438","block_type":"box","text":"t is less than the value of the Municipal Bonds in","page_number":169,"box":{"x":519,"y":444,"width":351,"height":12}},{"id":"944c2e18-f9bd-48f6-97e5-2d5917fef227","block_type":"box","text":"the TOB Trust. This multiplies the positive or negative","page_number":169,"box":{"x":116,"y":459,"width":395,"height":12}},{"id":"29a4389d-9661-4143-ba55-385e615dab66","block_type":"box","text":"impact of the Municipal Bonds’ return within the","page_number":169,"box":{"x":512,"y":459,"width":348,"height":12}},{"id":"393b4b11-55d8-4d75-bc4d-bb21d30a836f","block_type":"box","text":"Fund (thereby creating leverage). The leverage within a","page_number":169,"box":{"x":117,"y":475,"width":408,"height":12}},{"id":"7400201f-aecf-4493-a61e-9b13971c6c53","block_type":"box","text":"TOB Trust depends on the value of the Municipal","page_number":169,"box":{"x":525,"y":475,"width":362,"height":12}},{"id":"9e641b3f-f04a-4470-8efc-427b73e3ea12","block_type":"box","text":"Bonds deposited in the TOB Trust relative to","page_number":169,"box":{"x":117,"y":490,"width":327,"height":12}},{"id":"bb2792d7-08c4-47ed-88ed-96601bccf973","block_type":"box","text":"the value of the TOB Floaters it issues.","page_number":169,"box":{"x":444,"y":490,"width":288,"height":10}},{"id":"a4310755-225e-4e9f-906a-33a51e4afa54","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly","page_number":169,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"4d4d2687-e3ee-4740-935a-524c5a7d957c","block_type":"box","text":"leveraged if the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of","page_number":169,"box":{"x":117,"y":537,"width":765,"height":12}},{"id":"61245907-61d8-45c9-9be5-1946e455ca42","block_type":"box","text":"the principal amount of the Municipal Bonds owned by the TOB Trust.","page_number":169,"box":{"x":116,"y":552,"width":523,"height":12}},{"id":"c4764532-eb43-48af-9f68-cf56e099c729","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option","page_number":169,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"74ac811c-a30a-408f-a6c2-ca726e28a08e","block_type":"box","text":"termination events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust","page_number":169,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"b74555e5-6d31-4fcb-a340-eba105ca95c7","block_type":"box","text":"agreements. TOTEs include the bankruptcy or default of the issuer of the Municipal Bonds held in the","page_number":169,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"5d39d3de-cfaf-4b2b-bdb9-7c6ebec68beb","block_type":"box","text":"TOB Trust, a substantial downgrade in the credit quality of the issuer of the Municipal Bonds held in","page_number":169,"box":{"x":116,"y":630,"width":744,"height":12}},{"id":"b5b1ed13-85f9-4320-bd62-93297b7494f7","block_type":"box","text":"the TOB Trust, failure of any scheduled payment of principal or interest on the Municipal Bonds, and a","page_number":169,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"a3fa7676-8ceb-4493-847e-041acb922939","block_type":"box","text":"judgment or ruling that interest on the Municipal Bonds is subject to U.S. federal income taxation.","page_number":169,"box":{"x":115,"y":661,"width":721,"height":12}},{"id":"e8622b7a-2090-4f01-ade6-0ce2d33c8509","block_type":"box","text":"MTEs may include, among other things, a failed remarketing of the TOB Floaters, the inability of the","page_number":169,"box":{"x":117,"y":676,"width":739,"height":12}},{"id":"1ce05bf7-001f-41f4-9afc-94cd831ae912","block_type":"box","text":"TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":169,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"29e3fba4-ac55-4701-a22c-063665917a60","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a","page_number":169,"box":{"x":116,"y":707,"width":729,"height":12}},{"id":"9287a247-36d3-4010-be98-0a3670bcf26b","block_type":"box","text":"TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee","page_number":169,"box":{"x":116,"y":723,"width":752,"height":12}},{"id":"135ba241-1799-494a-8c9f-6b8e18ddc26c","block_type":"box","text":"of the TOB Trust, the remarketing agent of the TOB Floaters and the Liquidity Provider (defined","page_number":169,"box":{"x":116,"y":738,"width":708,"height":12}},{"id":"3c680d4f-2f1f-4857-8632-78f4b1e348e4","block_type":"box","text":"below). In the case of an MTE, after the payment of fees, the holders of the TOB Floaters would be","page_number":169,"box":{"x":117,"y":754,"width":734,"height":12}},{"id":"c0b9b933-eddd-4c61-9a7f-39127b8c9413","block_type":"box","text":"paid senior to the TOB Residual holders (","page_number":169,"box":{"x":117,"y":769,"width":307,"height":12}},{"id":"abe0b5f7-756d-41e9-adc1-0ddee932eef6","block_type":"box","text":"i.e.","page_number":169,"box":{"x":425,"y":769,"width":20,"height":10}},{"id":"c419b13a-6bc8-46dd-a053-cb3e45d7f681","block_type":"box","text":", the Fund). In contrast, in the case of a TOTE, after","page_number":169,"box":{"x":448,"y":769,"width":385,"height":12}},{"id":"a33c03e1-740d-49b7-b36c-a9e2baaf95e8","block_type":"box","text":"payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro rata in","page_number":169,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"7a5cbfa5-eea9-4a99-be1e-107454b44d26","block_type":"box","text":"proportion to the respective face values of their certificates.","page_number":169,"box":{"x":117,"y":800,"width":437,"height":12}},{"id":"fa423eca-8885-43d9-8017-e6d1930add1b","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically","page_number":169,"box":{"x":116,"y":831,"width":769,"height":12}},{"id":"0cb494b4-25f8-45cb-a6e2-cf352f2e321f","block_type":"box","text":"supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity","page_number":169,"box":{"x":116,"y":847,"width":766,"height":12}},{"id":"e50d806c-574e-4bea-9e00-9fddd33c0a26","block_type":"box","text":"Provider”) that allows the holders of the TOB Floaters to tender their TOB Floaters in exchange for","page_number":169,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"6e80c238-72ef-41d9-b33b-2a5dd3eb5d5f","block_type":"box","text":"payment of par plus accrued interest on any business day (subject to the non-occurrence of a TOTE","page_number":169,"box":{"x":117,"y":878,"width":748,"height":12}},{"id":"fadb38d7-6f60-4485-b350-e8694e8272cc","block_type":"box","text":"II-75","page_number":169,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c711cc88-a2f6-4c28-b900-d73c19c7bd70","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":169,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5513c9ae-ffa5-4dc2-bf37-b2477f4e2886","block_type":"box","text":"described above). Depending on the structure of the TOB Trust, the Liquidity Provider may purchase","page_number":170,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"61961e53-fe6f-458b-ae7e-60afd45b8fd9","block_type":"box","text":"the tendered TOB Floaters, or the TOB Trust may draw upon a loan from the Liquidity Provider to","page_number":170,"box":{"x":116,"y":102,"width":728,"height":13}},{"id":"d7c1a9c9-89c8-4dd0-87ed-a68f781303d5","block_type":"box","text":"purchase the tendered TOB Floaters.","page_number":170,"box":{"x":117,"y":118,"width":281,"height":12}},{"id":"ca85c85b-3d6f-49b6-a3db-ef2c8c11d22d","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to","page_number":170,"box":{"x":116,"y":149,"width":758,"height":12}},{"id":"47134202-0208-46ee-a58f-b7f31eb0cac8","block_type":"box","text":"make a payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion","page_number":170,"box":{"x":117,"y":165,"width":753,"height":12}},{"id":"37916954-02fd-4839-95f0-3eab931e86e6","block_type":"box","text":"of the Municipal Bonds held in the TOB Trust and then fund the balance, if any, of the amount owed","page_number":170,"box":{"x":116,"y":180,"width":746,"height":12}},{"id":"74b20831-dbb8-4451-9cd3-ff7e3b9d9636","block_type":"box","text":"under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in","page_number":170,"box":{"x":117,"y":196,"width":760,"height":12}},{"id":"0ba55376-4a45-453c-ac49-5c5079ed2769","block_type":"box","text":"a TOB Trust on a recourse basis, it will typically enter into a reimbursement agreement with the","page_number":170,"box":{"x":116,"y":211,"width":712,"height":12}},{"id":"d365d732-c64b-476a-a74e-2a706988447d","block_type":"box","text":"Liquidity Provider pursuant to which the Fund is required to reimburse the Liquidity Provider the","page_number":170,"box":{"x":117,"y":227,"width":712,"height":12}},{"id":"3f57361a-51d6-4089-9619-c59039e59915","block_type":"box","text":"amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust, the Fund","page_number":170,"box":{"x":116,"y":242,"width":759,"height":12}},{"id":"4e983454-3e4e-458d-8c76-af943dc5f3c7","block_type":"box","text":"will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":170,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"85a1747e-6782-4742-a1e6-248e6a78900f","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their","page_number":170,"box":{"x":117,"y":273,"width":678,"height":12}},{"id":"f487ae17-c84d-46a0-bdba-d728bd6d8628","block_type":"box","text":"participation in the TOB Trust.","page_number":170,"box":{"x":117,"y":289,"width":227,"height":12}},{"id":"ed458ab3-8f2b-4fab-99d0-4c5323aff8af","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are","page_number":170,"box":{"x":117,"y":320,"width":682,"height":12}},{"id":"26ffb5fb-4d29-4e3a-b3e1-284ac0c64cd5","block_type":"box","text":"investments of the Fund and are presented on the Fund’s Schedule of Investments and outstanding","page_number":170,"box":{"x":117,"y":335,"width":745,"height":12}},{"id":"900ad2ce-0e77-4d17-b0c9-45e7dd681d94","block_type":"box","text":"TOB Floaters issued by a TOB Trust are presented as liabilities in the Fund’s Statement of Assets and","page_number":170,"box":{"x":116,"y":351,"width":765,"height":12}},{"id":"73de95f9-7935-4dcb-b3da-9a518db71d2f","block_type":"box","text":"Liabilities. Interest income from the underlying Municipal Bonds is recorded by a Fund on an accrual","page_number":170,"box":{"x":117,"y":366,"width":747,"height":12}},{"id":"c439f226-f67f-4ce1-8a8b-61f6e8649401","block_type":"box","text":"basis. Interest expense incurred on the","page_number":170,"box":{"x":117,"y":382,"width":288,"height":12}},{"id":"4680cc07-9f8f-400b-ad93-d82c6b6ca6e3","block_type":"box","text":"TOB Floaters and other expenses related to remarketing,","page_number":170,"box":{"x":409,"y":382,"width":430,"height":12}},{"id":"e549e131-1a5d-449f-a209-697ac38c5e9e","block_type":"box","text":"administration, trustee and other services to a TOB Trust are reported as expenses of a Fund. In","page_number":170,"box":{"x":116,"y":397,"width":722,"height":12}},{"id":"df92d939-e956-4b83-b9fc-b11bb5ca10f9","block_type":"box","text":"addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented","page_number":170,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"1661bfe9-8440-4dcc-9493-9e6bfc34b1b3","block_type":"box","text":"as loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s","page_number":170,"box":{"x":116,"y":428,"width":721,"height":10}},{"id":"ded12454-f107-4a0a-bcf2-afb583ee5058","block_type":"box","text":"assets.","page_number":170,"box":{"x":116,"y":444,"width":58,"height":9}},{"id":"38c539bd-1b77-4dbd-8256-57ac265761b9","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal","page_number":170,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"bae521ed-e189-4bac-bbf7-9a2df1766368","block_type":"box","text":"Bonds with maturities or remarketing provisions that are comparable in duration to the periodic interval","page_number":170,"box":{"x":117,"y":490,"width":764,"height":12}},{"id":"2e865c46-65f4-4dad-88e3-91aa4b8f472d","block_type":"box","text":"of the tender option. Since the tender option feature has a shorter term than the final maturity or first","page_number":170,"box":{"x":116,"y":506,"width":748,"height":12}},{"id":"e4522f21-ef52-492e-9bfb-e36ee82e3767","block_type":"box","text":"call date of the underlying Municipal Bonds deposited in the TOB Trust, the holder of the TOB Floaters","page_number":170,"box":{"x":116,"y":521,"width":766,"height":12}},{"id":"f06b5c77-b1c7-436a-a4e0-fd29a08d414b","block_type":"box","text":"relies upon the terms of the agreement with the financial institution furnishing the liquidity facility as","page_number":170,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"7ad42b77-dae3-47ee-aa95-74ed8bdfb43b","block_type":"box","text":"well as the credit strength of that institution. The risk associated with TOB Floaters, however, may be","page_number":170,"box":{"x":116,"y":552,"width":754,"height":12}},{"id":"9abd19ae-94f3-4855-923e-58775e16c2f8","block_type":"box","text":"increased in the current market environment as a result of recent downgrades to the credit ratings, and","page_number":170,"box":{"x":117,"y":568,"width":767,"height":12}},{"id":"98cf6803-fddf-4232-83fd-8e0ed9a39085","block_type":"box","text":"thus the perceived reliability and creditworthiness, of many major financial institutions, some of which","page_number":170,"box":{"x":116,"y":583,"width":755,"height":12}},{"id":"c999f932-8ba7-43b7-98b0-003e8ed2097e","block_type":"box","text":"sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":170,"box":{"x":116,"y":599,"width":763,"height":12}},{"id":"3ba15dae-eda0-450c-bd6f-ecda12214715","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":170,"box":{"x":117,"y":614,"width":633,"height":12}},{"id":"1e38a989-2cbd-4b40-b0ac-c7fedd49cfc0","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions,","page_number":170,"box":{"x":117,"y":645,"width":727,"height":12}},{"id":"7e3719d8-8fb6-4501-ac75-553f391141cc","block_type":"box","text":"reverse repurchase agreements and similar financing transactions (e.g., borrowed bonds)","page_number":170,"box":{"x":117,"y":661,"width":650,"height":12}},{"id":"ebd9d5ce-4d60-4824-b881-a808a47ce641","block_type":"box","text":"notwithstanding the limitation","page_number":170,"box":{"x":117,"y":676,"width":209,"height":12}},{"id":"5e1ab2af-6640-4c0f-9e9c-ba998a7284fb","block_type":"box","text":"on the issuance of senior securities in Section 18 of the Investment","page_number":170,"box":{"x":332,"y":676,"width":487,"height":10}},{"id":"20cbd959-5dc2-4e77-87f2-755fd4c017c1","block_type":"box","text":"Company Act, provided that the Fund either (i) comp","page_number":170,"box":{"x":117,"y":692,"width":381,"height":12}},{"id":"00563ed6-f3c7-447c-829c-6335b7b76529","block_type":"box","text":"lies with the 300% asset coverage ratio with respect","page_number":170,"box":{"x":499,"y":692,"width":377,"height":12}},{"id":"6304d8b0-e2c5-4905-b869-92b414a0db1b","block_type":"box","text":"to such transactions and any other borrowings in t","page_number":170,"box":{"x":116,"y":707,"width":363,"height":12}},{"id":"253f6bcb-c651-45ae-bf35-ddd289f09764","block_type":"box","text":"he aggregate, or (ii) treats such transactions as","page_number":170,"box":{"x":480,"y":707,"width":342,"height":12}},{"id":"0345e46b-a314-4723-b327-d65f8a6ac025","block_type":"box","text":"Derivatives Transactions under Rule 18f-4. See “—","page_number":170,"box":{"x":117,"y":723,"width":372,"height":9}},{"id":"67e74cce-1865-4ea4-9246-c163763b99e5","block_type":"box","text":"Derivatives—Regulation of Derivatives—Rule 18f-4","page_number":170,"box":{"x":489,"y":723,"width":372,"height":12}},{"id":"e61ca022-931f-4330-ba42-66b081b6bca0","block_type":"box","text":"under the Investment Company Act” above.","page_number":170,"box":{"x":117,"y":738,"width":316,"height":12}},{"id":"93e0e3de-b514-4882-9401-50fe91a2a53b","block_type":"box","text":"Developments in the TOB Trust Market","page_number":170,"box":{"x":116,"y":769,"width":292,"height":12}},{"id":"b8eb69f9-5a86-40ff-8ca9-621548ab319f","block_type":"box","text":". In response to the restrictions imposed by section 619 of the","page_number":170,"box":{"x":409,"y":769,"width":457,"height":12}},{"id":"58676fd4-54ad-4c5f-9046-a7ee57ccaef6","block_type":"box","text":"Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), market participants","page_number":170,"box":{"x":117,"y":785,"width":761,"height":12}},{"id":"e0575c58-9c5a-44f3-8aad-d351eaa1dedf","block_type":"box","text":"have developed a structure for TOB Trusts designed to ensure that no banking entity is sponsoring the","page_number":170,"box":{"x":117,"y":800,"width":761,"height":12}},{"id":"7b217c79-bf67-4c3b-aac5-5ca0648459ee","block_type":"box","text":"TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will establish, structure and “sponsor”","page_number":170,"box":{"x":116,"y":816,"width":760,"height":12}},{"id":"a9a5a009-dbb9-4c9f-8d51-1dc6db5d4cd5","block_type":"box","text":"the TOB Trusts in which it holds TOB Residuals. In such a structure, certain responsibilities that","page_number":170,"box":{"x":116,"y":831,"width":715,"height":12}},{"id":"1ee59e45-4525-407b-b40b-d35964d18cfa","block_type":"box","text":"previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund may","page_number":170,"box":{"x":117,"y":847,"width":740,"height":12}},{"id":"127f977d-c78b-4f04-aa1a-f6d754d94280","block_type":"box","text":"utilize service providers in meeting these responsibilities. It is possible that regulators could take","page_number":170,"box":{"x":117,"y":862,"width":717,"height":12}},{"id":"0769dabf-4c0e-415b-81b3-276811456c7e","block_type":"box","text":"positions that could limit the market for such structured TOB Trust transactions or a Fund’s ability to","page_number":170,"box":{"x":117,"y":878,"width":744,"height":12}},{"id":"948e2b3b-0eec-45ec-84b3-db810c532c76","block_type":"box","text":"II-76","page_number":170,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"1506e78e-f61d-4609-8b6f-112a99ab749d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":170,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"08c741f1-95bc-4e23-9287-eb79e87367d0","block_type":"box","text":"hold TOB Residuals. Under this TOB Trust structure, a Fund has certain additional duties and","page_number":171,"box":{"x":117,"y":87,"width":699,"height":11}},{"id":"aee26da3-7b48-41a9-8f4d-f31d9e4b72c6","block_type":"box","text":"responsibilities, which may give rise to certain additional risks including","page_number":171,"box":{"x":117,"y":103,"width":525,"height":12}},{"id":"c7c5f633-e588-44ca-b037-6267cd236557","block_type":"box","text":",","page_number":171,"box":{"x":643,"y":111,"width":3,"height":3}},{"id":"1a351099-1043-434f-a567-8ad926ae4160","block_type":"box","text":"but not limited to, compliance,","page_number":171,"box":{"x":648,"y":103,"width":232,"height":11}},{"id":"2b76b7f8-8d52-480a-b29a-58de22366bc0","block_type":"box","text":"securities law and operational risks.","page_number":171,"box":{"x":116,"y":118,"width":270,"height":12}},{"id":"c335b4b2-76fa-4e40-a0c8-b3f11e0dfd3a","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers,","page_number":171,"box":{"x":117,"y":149,"width":724,"height":12}},{"id":"cbc330e9-17e1-4fef-a313-5a1aa801efc3","block_type":"box","text":"trustees, and remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual","page_number":171,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"dedf024e-6b69-4efa-8176-ff4b985265dc","block_type":"box","text":"holder. Similar to the traditional tender option bond structure, a Fund deposits Municipal Bonds into the","page_number":171,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"62a13083-4324-4499-95e7-e565bd0718a0","block_type":"box","text":"TOB Trust in exchange for TOB Residuals, the TOB Trust then issues and sells TOB Floaters to third","page_number":171,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"6f35a27c-1ac1-48f2-b9b4-be9317cf7891","block_type":"box","text":"party investors, and the proceeds of the sale of the TOB Floaters is distributed to such TOB Residual","page_number":171,"box":{"x":117,"y":211,"width":754,"height":12}},{"id":"56a1cc73-2415-4e56-9189-994b00ba5e88","block_type":"box","text":"holders (","page_number":171,"box":{"x":117,"y":227,"width":64,"height":12}},{"id":"a4feb07e-4657-41b9-b2e1-0448c4b088aa","block_type":"box","text":"i.e.","page_number":171,"box":{"x":182,"y":227,"width":20,"height":9}},{"id":"00192bcd-ff80-4bdd-b496-7f0e7e146ae6","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be supported by a remarketing agent and","page_number":171,"box":{"x":205,"y":227,"width":671,"height":12}},{"id":"56391172-a918-4913-ad6d-d3862edf9d11","block_type":"box","text":"a liquidity facility. However, the remarketing agent does not purchase tendered TOB Floaters for its","page_number":171,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"ed615fda-818a-4d53-a87c-c6cc9be56118","block_type":"box","text":"own account in the event of a failed remarketing, which may increase the likelihood that a TOB Trust","page_number":171,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"b91ed685-76b0-460a-9805-2f71f8926bfa","block_type":"box","text":"will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of","page_number":171,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"fd5a5324-920a-4187-b098-c5ed12927d01","block_type":"box","text":"a failed remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the","page_number":171,"box":{"x":116,"y":289,"width":745,"height":12}},{"id":"81567a06-f03a-4b5d-84f2-1e6be7b4a7d6","block_type":"box","text":"TOB Trust the proceeds of which would be used by the TOB Trust to purchase the tendered TOB","page_number":171,"box":{"x":116,"y":304,"width":728,"height":12}},{"id":"4394b440-e719-47cb-b3e6-09871cc31382","block_type":"box","text":"Floaters. The Liquidity Provider is not obligated to advance such a loan. The TOB Trust would be the","page_number":171,"box":{"x":117,"y":320,"width":753,"height":12}},{"id":"e244d959-eb7f-458f-bd58-87a7e2e852c3","block_type":"box","text":"borrower with respect to any such loan. Any loans made by a Liquidity Provider will be secured by the","page_number":171,"box":{"x":117,"y":335,"width":758,"height":12}},{"id":"e42502d8-4362-454a-b615-49d34c766dac","block_type":"box","text":"purchased TOB Floaters held by the TOB Trust.","page_number":171,"box":{"x":117,"y":351,"width":361,"height":12}},{"id":"58b94e1c-0b5b-48e6-9b0e-5271d61eb839","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals","page_number":171,"box":{"x":116,"y":382,"width":769,"height":12}},{"id":"e267297a-2cda-4e3d-8780-de4afc572090","block_type":"box","text":"or recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would","page_number":171,"box":{"x":116,"y":397,"width":735,"height":12}},{"id":"d62d3d9b-d613-4f3d-b9e7-8c3d052760b9","block_type":"box","text":"generally be no contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB","page_number":171,"box":{"x":116,"y":413,"width":718,"height":12}},{"id":"e86e55dd-92d5-4772-9fb5-f51ebc2d3d10","block_type":"box","text":"Residual. However, as described above, a Fund would bear the risk of loss with respect to any","page_number":171,"box":{"x":117,"y":428,"width":706,"height":12}},{"id":"54f154f7-6ce7-41d0-8ac1-3775221ae4ba","block_type":"box","text":"Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":171,"box":{"x":117,"y":444,"width":421,"height":12}},{"id":"341daf69-3d3b-4615-88de-a1cbf2ce583e","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for","page_number":171,"box":{"x":116,"y":475,"width":730,"height":12}},{"id":"c65f329e-e9a6-4fbf-8b00-e81bada4c443","block_type":"box","text":"securitizations (the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention","page_number":171,"box":{"x":116,"y":490,"width":753,"height":12}},{"id":"3465f08c-9507-4906-99a0-43146acbba9f","block_type":"box","text":"Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets","page_number":171,"box":{"x":117,"y":506,"width":771,"height":12}},{"id":"76fa7396-e901-461a-8120-b972e2a029ca","block_type":"box","text":"supporting the TOB Trust’s Municipal Bonds. The Risk Retention Rules may adversely affect the","page_number":171,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"fccd9ae3-c3ad-42d7-b4e9-8cd43598530b","block_type":"box","text":"Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain","page_number":171,"box":{"x":117,"y":537,"width":764,"height":12}},{"id":"cac8e934-4cc4-4093-9c66-45a0e1037b07","block_type":"box","text":"circumstances.","page_number":171,"box":{"x":116,"y":552,"width":117,"height":10}},{"id":"3e73d2de-31ab-4ee0-955d-8309e58e7ae2","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":171,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"21e618cd-35ad-4052-9328-eb4e74bd859d","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through","page_number":171,"box":{"x":117,"y":599,"width":729,"height":12}},{"id":"687cca5b-d5ca-4ee1-8ce3-b9d581be013f","block_type":"box","text":"reduced demand for and liquidity of municipal bonds and increased financing costs for municipal","page_number":171,"box":{"x":117,"y":614,"width":719,"height":12}},{"id":"d5dc2e51-e3b0-460b-a0f2-0edea6f04f78","block_type":"box","text":"issuers. Any such developments could adversely affect the Funds. The ultimate impact of these rules","page_number":171,"box":{"x":117,"y":630,"width":754,"height":12}},{"id":"4f48ec37-7158-4a21-8967-638ace6266b4","block_type":"box","text":"on the TOB market and the overall municipal market is not yet certain.","page_number":171,"box":{"x":116,"y":645,"width":520,"height":12}},{"id":"64759c2e-5d09-4be3-939a-83ffa2970d4e","block_type":"box","text":"Yields.","page_number":171,"box":{"x":118,"y":676,"width":47,"height":10}},{"id":"46e02c5b-a651-4ff2-9a60-f8ea49366609","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general","page_number":171,"box":{"x":171,"y":676,"width":639,"height":12}},{"id":"50efc1eb-b5f7-40d3-8d22-e8985f6aa373","block_type":"box","text":"condition of the money market and of the municipal bond market, the size of a particular offering, the","page_number":171,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"59e5e88f-5b04-427b-8ea5-2f478f836230","block_type":"box","text":"financial condition of the issuer, the maturity of the obligation and the rating of the issue. The ability of","page_number":171,"box":{"x":116,"y":707,"width":754,"height":12}},{"id":"75a78c22-5c87-4264-a197-9cd77ce6eb9b","block_type":"box","text":"a Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of","page_number":171,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"27651f2f-65a0-4339-96f2-c2ce1a005bca","block_type":"box","text":"the securities in which the Fund invests to meet their obligations for the payment of interest and","page_number":171,"box":{"x":116,"y":738,"width":708,"height":12}},{"id":"1e04deae-a121-4dfd-8f34-038f7c86de76","block_type":"box","text":"principal when due. There are variations in the risks involved in holding Municipal Bonds, both within a","page_number":171,"box":{"x":117,"y":754,"width":757,"height":12}},{"id":"e275145c-aa16-4af9-8248-2e83cb835aba","block_type":"box","text":"particular classification and between classifications, depending on numerous factors. Furthermore, the","page_number":171,"box":{"x":117,"y":769,"width":758,"height":12}},{"id":"cba43cc1-6e3d-4211-9362-b12302baea77","block_type":"box","text":"rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal Bonds may be","page_number":171,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"572237a8-f250-41c3-abd5-829eb38781ee","block_type":"box","text":"subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights of","page_number":171,"box":{"x":116,"y":800,"width":763,"height":12}},{"id":"a282d846-fe19-488e-9faf-d1fe89702178","block_type":"box","text":"creditors generally and to general equitable principles, which may limit the enforcement of certain","page_number":171,"box":{"x":116,"y":816,"width":721,"height":12}},{"id":"087fff16-79b0-4bc5-8497-ce0c27cd8e31","block_type":"box","text":"remedies.","page_number":171,"box":{"x":117,"y":831,"width":77,"height":10}},{"id":"82e3f603-1e13-4dc6-8183-f655954c958f","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":171,"box":{"x":118,"y":862,"width":344,"height":12}},{"id":"64cf93d1-b375-4772-89a0-9b5b2af67b01","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a","page_number":171,"box":{"x":464,"y":862,"width":374,"height":12}},{"id":"1b0c49b6-1806-4118-9c1a-9be1477bc6b4","block_type":"box","text":"floating or variable interest rate adjustment formula and a right of demand on the part of the holder","page_number":171,"box":{"x":116,"y":878,"width":736,"height":12}},{"id":"111c681b-054e-46f3-9dde-5cb8e6a13295","block_type":"box","text":"II-77","page_number":171,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"94a43e08-4467-421b-96a1-fde3e6b77d97","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":171,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ef6c2d57-0d6f-47c5-be00-84481466d521","block_type":"box","text":"thereof to receive payment of the unpaid principal balance plus accrued interest upon a short notice","page_number":172,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"9b8cc95a-5306-4fc7-9695-8f8998d2b475","block_type":"box","text":"period not to exceed seven days.","page_number":172,"box":{"x":117,"y":103,"width":250,"height":12}},{"id":"87b12176-9d96-4d96-8e8f-69ad42cbf334","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be","page_number":172,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"05ea7a63-4481-46bc-a4d0-6531bf528e40","block_type":"box","text":"honored. The interest rates are adjustable at periodic intervals to some prevailing market rate for","page_number":172,"box":{"x":117,"y":149,"width":721,"height":12}},{"id":"e08e4dca-7ff5-425c-96e7-6e630c7427ae","block_type":"box","text":"similar investments, such adjustment formula being calculated to maintain the market rate of the","page_number":172,"box":{"x":116,"y":165,"width":718,"height":12}},{"id":"9c826aa6-a55d-4b5c-9f2c-153fd1de278b","block_type":"box","text":"VRDOs at approximately the par value of the VRDOs on the adjustment date. The adjustments","page_number":172,"box":{"x":116,"y":180,"width":710,"height":12}},{"id":"1eed5922-b9ad-4ea8-8269-120e8194c8f6","block_type":"box","text":"typically are based upon the Securities Industry and Financial Markets Association (“SIFMA”) Index.","page_number":172,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"5b90d744-a4d5-4507-9e10-0d7298c535cb","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate","page_number":172,"box":{"x":117,"y":227,"width":751,"height":12}},{"id":"aba76bc9-6ad9-434b-834d-3c99c63a8ea4","block_type":"box","text":"securities. During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its","page_number":172,"box":{"x":116,"y":242,"width":746,"height":12}},{"id":"7e335396-5318-45cf-9d90-aa97c0532e7f","block_type":"box","text":"shareholders will forego the opportunity for capital appreciation. During periods of rising interest rates,","page_number":172,"box":{"x":116,"y":258,"width":761,"height":12}},{"id":"759818e9-1839-4bca-84d6-1570f89e5074","block_type":"box","text":"however, a Fund’s yield on a VRDO will increase and the Fund’s shareholders will have a reduced risk","page_number":172,"box":{"x":117,"y":273,"width":764,"height":12}},{"id":"9e1dedfc-4dad-4b43-87b1-1e2c2cce6cab","block_type":"box","text":"of capital depreciation.","page_number":172,"box":{"x":116,"y":289,"width":173,"height":12}},{"id":"28e1a4c6-c6c4-4add-9139-87154a7e1c54","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":172,"box":{"x":118,"y":320,"width":488,"height":12}},{"id":"01084192-8e9b-4b21-adb2-01fe552e8d25","block_type":"box","text":"The Municipal Funds and certain","page_number":172,"box":{"x":608,"y":320,"width":253,"height":12}},{"id":"77d2d792-2bb7-475a-8190-5de9e50f78a1","block_type":"box","text":"other funds deal in financial futures contracts based on a long-term municipal bond index developed by","page_number":172,"box":{"x":116,"y":335,"width":770,"height":12}},{"id":"f43e55bd-49b1-4447-9126-9d6f54c39bd0","block_type":"box","text":"the Chicago Board of Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal","page_number":172,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"4f8a23ec-00ca-4fdc-9055-aa729f5ab199","block_type":"box","text":"Bond Index is comprised of 40 long-term, actively traded tax-exempt municipal revenue and general","page_number":172,"box":{"x":117,"y":366,"width":746,"height":12}},{"id":"d74381b5-c3f8-42ac-bd10-47021fb4811f","block_type":"box","text":"obligation bonds. Each bond included in the Municipal Bond Index must be rated A or higher by","page_number":172,"box":{"x":116,"y":382,"width":712,"height":12}},{"id":"a93e0724-d842-4fd9-ab33-15f3b104e695","block_type":"box","text":"Moody’s or S&P and must have a remaining maturity of 19 years or more. Twice a month new issues","page_number":172,"box":{"x":117,"y":397,"width":754,"height":12}},{"id":"4cc4b207-2015-40c6-9863-8bef847d9c97","block_type":"box","text":"satisfying the eligibility requirements are added to, and an equal number of old issues are deleted from,","page_number":172,"box":{"x":116,"y":413,"width":771,"height":12}},{"id":"03f46dd3-45dc-4fa0-9a1e-f2420de9d276","block_type":"box","text":"the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":172,"box":{"x":116,"y":428,"width":734,"height":12}},{"id":"eb3a0970-e32e-4f25-9717-15f12c3f73b0","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six","page_number":172,"box":{"x":116,"y":444,"width":670,"height":12}},{"id":"29ad3267-1cbd-4561-986c-6cbdffc7b03a","block_type":"box","text":"dealer-to-dealer brokers.","page_number":172,"box":{"x":116,"y":459,"width":189,"height":10}},{"id":"f90c16cc-f197-4134-a047-52def64e59c3","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the","page_number":172,"box":{"x":116,"y":490,"width":760,"height":12}},{"id":"078d831c-b2b7-4ac7-befc-46cee9a7fa8d","block_type":"box","text":"CBT assures performance under futures contracts through a clearing corporation, a nonprofit","page_number":172,"box":{"x":117,"y":506,"width":694,"height":12}},{"id":"04251b77-ef41-4fa8-9582-2b3194bd097a","block_type":"box","text":"organization managed by the exchange membership that is also responsible for handling daily","page_number":172,"box":{"x":116,"y":521,"width":704,"height":12}},{"id":"e38b7da3-347a-4ec0-bfc6-fec3e3b2bf59","block_type":"box","text":"accounting of deposits or withdrawals of margin.","page_number":172,"box":{"x":116,"y":537,"width":364,"height":12}},{"id":"486ab38e-0529-40f3-9140-e41c597510f0","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial","page_number":172,"box":{"x":116,"y":568,"width":735,"height":12}},{"id":"e0c3e39d-25b0-4c93-9ffe-992da8546f73","block_type":"box","text":"futures contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s","page_number":172,"box":{"x":116,"y":583,"width":741,"height":12}},{"id":"241c6bb9-95f0-495c-94f4-f48e260e814c","block_type":"box","text":"ability to hedge effectively all or a portion of the value of its Municipal Bonds through the use of such","page_number":172,"box":{"x":116,"y":599,"width":749,"height":12}},{"id":"84df1652-be79-43db-b2f6-d86f239b7f59","block_type":"box","text":"financial futures contracts will depend in part on the degree to which price movements in the index","page_number":172,"box":{"x":116,"y":614,"width":734,"height":12}},{"id":"0c3444e4-ef68-4dce-9b89-ce2d2a244843","block_type":"box","text":"underlying the financial futures contract correlate with the price movements of the Municipal Bonds","page_number":172,"box":{"x":117,"y":630,"width":737,"height":12}},{"id":"b3f4aa85-04dd-4cab-812d-1426de8275e2","block_type":"box","text":"held by the Fund. The correlation may be affected by disparities in the average maturity, ratings,","page_number":172,"box":{"x":117,"y":645,"width":718,"height":12}},{"id":"d61f553e-43e9-48ce-b229-e49480202262","block_type":"box","text":"geographical mix or structure of a Municipal Fund’s investments as compared to those comprising the","page_number":172,"box":{"x":116,"y":661,"width":755,"height":12}},{"id":"0d652a1a-f0d2-412e-a115-6de033ac5149","block_type":"box","text":"Municipal Bond Index and general economic or political factors. In addition, the correlation between","page_number":172,"box":{"x":117,"y":676,"width":736,"height":12}},{"id":"998fb582-35a5-4da1-8753-8e8c4363b607","block_type":"box","text":"movements in the value of the Municipal Bond Index may be subject to change over time as additions","page_number":172,"box":{"x":117,"y":692,"width":753,"height":12}},{"id":"9baedb29-c77a-4d79-8d77-f72f6ae79a7f","block_type":"box","text":"to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":172,"box":{"x":116,"y":707,"width":725,"height":12}},{"id":"15a44150-4be7-4549-b24c-72863a7b7939","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be","page_number":172,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"8bafeea5-4073-4e7a-b7db-b214ab9c6348","block_type":"box","text":"adversely affected by similar factors and the risk of imperfect correlation between movements in the","page_number":172,"box":{"x":116,"y":738,"width":740,"height":12}},{"id":"e3f2d160-11df-4dce-b7d3-4a61bc81dcda","block_type":"box","text":"prices of such futures contracts and the prices of Municipal Bonds held by a Municipal Fund may be","page_number":172,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"82aab86f-5990-487f-a80d-4eaeb8d9e000","block_type":"box","text":"greater. Municipal Bond Index futures contracts were approved for trading in 1985. Trading in such","page_number":172,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"0df77fdb-b36b-410d-b7f8-c38225e2cd8b","block_type":"box","text":"futures contracts may tend to be less liquid than trading in other futures contracts. The trading of","page_number":172,"box":{"x":116,"y":785,"width":716,"height":12}},{"id":"f1fe1883-bdde-47b2-90c9-05d7c987e3d0","block_type":"box","text":"futures contracts also is subject to certain market risks, such as inadequate trading activity, which","page_number":172,"box":{"x":116,"y":800,"width":723,"height":12}},{"id":"1f975291-3e9f-4cff-a5a5-e90ce9a13d1b","block_type":"box","text":"could at times make it difficult or impossible to liquidate existing positions.","page_number":172,"box":{"x":116,"y":816,"width":545,"height":12}},{"id":"546bc817-8357-4069-827d-2934cf889897","block_type":"box","text":"Call Rights.","page_number":172,"box":{"x":117,"y":847,"width":83,"height":12}},{"id":"4d688333-4595-4228-a4ff-e146ee8a5739","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such","page_number":172,"box":{"x":202,"y":847,"width":626,"height":12}},{"id":"13999759-7ecb-42df-b550-6fef2c9c40dd","block_type":"box","text":"Municipal Bond for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may","page_number":172,"box":{"x":117,"y":862,"width":711,"height":12}},{"id":"1be9537f-9984-4292-9818-7e1cdd149bf2","block_type":"box","text":"exercise such right to require a mandatory tender for the purchase of related Municipal Bonds, subject","page_number":172,"box":{"x":116,"y":878,"width":763,"height":12}},{"id":"7ea89fe6-e516-47bf-a41f-ce567a039342","block_type":"box","text":"II-78","page_number":172,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2c09f2cb-75ff-4722-b5cc-7cb84a7f60d2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":172,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c11aad1a-1321-468a-8ba0-ec41342f0850","block_type":"box","text":"to certain conditions. A Call Right that is not exercised prior to maturity of the related Municipal Bond","page_number":173,"box":{"x":116,"y":87,"width":751,"height":12}},{"id":"6d21454e-919e-43d2-9066-6b23899d2309","block_type":"box","text":"will expire without value. The economic effect of holding both the Call Right and the related Municipal","page_number":173,"box":{"x":116,"y":102,"width":756,"height":13}},{"id":"a39ac6c5-544d-4a44-b2b8-bfa05844a16f","block_type":"box","text":"Bond is identical to holding a Municipal Bond as a non-callable security. Certain investments in such","page_number":173,"box":{"x":117,"y":118,"width":748,"height":12}},{"id":"9e20873d-2f10-4ef9-a6cb-dbb028191f90","block_type":"box","text":"obligations may be illiquid.","page_number":173,"box":{"x":116,"y":134,"width":201,"height":12}},{"id":"725600e7-c106-4dda-9f20-7a9b549952c1","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":173,"box":{"x":116,"y":165,"width":323,"height":11}},{"id":"7f2898cb-7477-4db1-a107-67a951659526","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":173,"box":{"x":440,"y":165,"width":439,"height":12}},{"id":"a91f8e9e-05e1-472a-85e4-dc6463f357be","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such","page_number":173,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"789c65b6-8e71-4141-849d-9afa929f077f","block_type":"box","text":"as Municipal Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial","page_number":173,"box":{"x":116,"y":196,"width":769,"height":12}},{"id":"0b96dbcc-2d89-488b-b9d1-49d6ee45b373","block_type":"box","text":"Markets Association Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters","page_number":173,"box":{"x":117,"y":211,"width":758,"height":12}},{"id":"d5b742cb-d824-4595-93a8-23b72365790f","block_type":"box","text":"into these transactions, the Fund expects to do so primarily to preserve a return or spread on a","page_number":173,"box":{"x":117,"y":227,"width":708,"height":12}},{"id":"d452854f-e07d-480a-8702-3d1f408e2e40","block_type":"box","text":"particular investment or portion of its portfolio or to protect against any increase in the price of","page_number":173,"box":{"x":117,"y":242,"width":699,"height":12}},{"id":"39b8fa87-4ee6-4ae6-abf1-d3506ef41e44","block_type":"box","text":"securities the Fund anticipates purchasing at a later date. A Fund intends to use these transactions","page_number":173,"box":{"x":116,"y":258,"width":741,"height":12}},{"id":"c003ea87-d4df-4ddb-b3ba-3870930973da","block_type":"box","text":"primarily as a hedge rather than as a speculative investment. However, a Fund also may invest in","page_number":173,"box":{"x":117,"y":273,"width":729,"height":12}},{"id":"8f71cab1-86ea-4f03-a7cc-33a8024bea73","block_type":"box","text":"MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for","page_number":173,"box":{"x":117,"y":289,"width":704,"height":12}},{"id":"a2ad0684-c734-4362-8323-aab2aa4941a6","block_type":"box","text":"example, during periods of steep interest rate yield curves (","page_number":173,"box":{"x":116,"y":304,"width":441,"height":12}},{"id":"0b6cbda0-b99c-4f21-90a8-3dc8c2c08a83","block_type":"box","text":"i.e.","page_number":173,"box":{"x":558,"y":304,"width":20,"height":10}},{"id":"6ecb70df-b109-4198-af1b-d121a60b567d","block_type":"box","text":", wide differences between short-term","page_number":173,"box":{"x":581,"y":304,"width":284,"height":11}},{"id":"0e2f9314-f69e-4013-9075-a9695f06f0e0","block_type":"box","text":"and long-term interest rates).","page_number":173,"box":{"x":116,"y":320,"width":221,"height":12}},{"id":"b651f8fd-673b-4c40-8e8f-6146d1ba3af6","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund","page_number":173,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"44fb478e-666a-4108-8a75-f6527700561c","block_type":"box","text":"exchanges with another party their respective commitments to pay or receive interest (","page_number":173,"box":{"x":116,"y":366,"width":642,"height":12}},{"id":"cea411dd-acc8-4927-b88c-27e79420b37f","block_type":"box","text":"e.g.","page_number":173,"box":{"x":760,"y":369,"width":25,"height":9}},{"id":"5adb4055-af27-443b-8a83-b01d6827132e","block_type":"box","text":", an","page_number":173,"box":{"x":788,"y":369,"width":32,"height":8}},{"id":"b5c78ed7-52ad-4318-9c9f-05d2c740250e","block_type":"box","text":"exchange of fixed rate payments for floating rate payments linked to the SIFMA Municipal Swap","page_number":173,"box":{"x":116,"y":382,"width":717,"height":12}},{"id":"a0b93509-1068-488e-b9c0-666a1e08813c","block_type":"box","text":"Index). Because the underlying index is a tax-exempt index, SIFMA Swaps may reduce cross-market","page_number":173,"box":{"x":117,"y":397,"width":755,"height":12}},{"id":"e2986640-cb9c-4b5c-9bea-a96d632bfadc","block_type":"box","text":"risks incurred by a Fund and increase a Fund’s ability to hedge effectively. SIFMA Swaps are typically","page_number":173,"box":{"x":117,"y":413,"width":760,"height":12}},{"id":"ffd90701-9880-44bd-a739-f0c1a060bc20","block_type":"box","text":"quoted for the entire yield curve, beginning with a seven day floating rate index out to 30 years. The","page_number":173,"box":{"x":116,"y":428,"width":745,"height":12}},{"id":"d31d8e63-d056-44ae-9354-6def114932ff","block_type":"box","text":"duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond with","page_number":173,"box":{"x":116,"y":444,"width":747,"height":12}},{"id":"70f863e4-1efb-451d-ab0b-91e8b465b245","block_type":"box","text":"the same attributes as the swap (","page_number":173,"box":{"x":116,"y":459,"width":247,"height":12}},{"id":"24d49b1c-e404-48ac-b1d2-33e040b271bb","block_type":"box","text":"e.g.","page_number":173,"box":{"x":365,"y":462,"width":25,"height":9}},{"id":"90a3b8cd-1023-4470-91ae-8c7d84bfe317","block_type":"box","text":", coupon, maturity, call feature).","page_number":173,"box":{"x":393,"y":459,"width":240,"height":12}},{"id":"c3d792bf-96f1-4911-bddc-9e5d900b03f9","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap","page_number":173,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"9554bd1d-e058-4226-bc05-ed08e65cea7f","block_type":"box","text":"permits a Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a","page_number":173,"box":{"x":117,"y":506,"width":744,"height":12}},{"id":"0a4634b3-48b3-4346-b33f-2985225c9e18","block_type":"box","text":"return on a particular investment or a portion of its portfolio as a duration management technique or to","page_number":173,"box":{"x":117,"y":521,"width":761,"height":12}},{"id":"fd85f2f9-3fd8-46e9-96a9-776f4241a960","block_type":"box","text":"protect against any increase in the price of securities to be purchased at a later date. By using an MMD","page_number":173,"box":{"x":117,"y":537,"width":771,"height":12}},{"id":"8871bdda-5314-4938-b5cc-ff4cac1a8c6a","block_type":"box","text":"Swap, a Fund can create a synthetic long or short position, allowing the Fund to select the most","page_number":173,"box":{"x":116,"y":552,"width":715,"height":12}},{"id":"54361b28-d2f5-4e49-8efa-b9f64d0ec3c0","block_type":"box","text":"attractive part of the yield curve. An MMD Swap is a contract between a Fund and an MMD Swap","page_number":173,"box":{"x":116,"y":568,"width":729,"height":12}},{"id":"bdd8994c-e46f-4a01-b7df-17c47b2d81f0","block_type":"box","text":"provider pursuant to which the parties agree to make payments to each other on a notional amount,","page_number":173,"box":{"x":117,"y":583,"width":744,"height":12}},{"id":"7372d682-b8a2-4c9c-bf5d-8efb20471c8f","block_type":"box","text":"contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or below a","page_number":173,"box":{"x":116,"y":599,"width":769,"height":12}},{"id":"e795add0-98a0-4e30-bb57-6959e5f0b23a","block_type":"box","text":"specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and","page_number":173,"box":{"x":116,"y":614,"width":754,"height":12}},{"id":"695f8620-33f6-47eb-9cba-acbea3d44132","block_type":"box","text":"the Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration","page_number":173,"box":{"x":116,"y":630,"width":763,"height":12}},{"id":"9661eaa1-fbb8-4088-8a83-e49da84b793e","block_type":"box","text":"date, the counterparty to the contract will make a payment to the Fund equal to the specified level","page_number":173,"box":{"x":116,"y":645,"width":730,"height":12}},{"id":"0a96f924-34e9-408b-a9bc-1d7cd59a29ea","block_type":"box","text":"minus the actual level, multiplied by the notional amount of the contract. If the Municipal Market Data","page_number":173,"box":{"x":117,"y":661,"width":746,"height":12}},{"id":"1175c392-3520-4584-95b8-44249bd9247e","block_type":"box","text":"AAA General Obligation Scale is above the specified level on the expiration date, a Fund will make a","page_number":173,"box":{"x":116,"y":676,"width":746,"height":12}},{"id":"89d8582c-a155-47f8-828e-8f8d278f09ae","block_type":"box","text":"payment to the counterparty equal to the actual level minus the specified level, multiplied by the","page_number":173,"box":{"x":117,"y":692,"width":708,"height":12}},{"id":"c25a20dc-f7e2-405d-828a-bc38b9e025de","block_type":"box","text":"notional amount of the contract.","page_number":173,"box":{"x":117,"y":707,"width":233,"height":10}},{"id":"43bc7f47-7f4e-481e-ad34-8b4b2f36c266","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps,","page_number":173,"box":{"x":117,"y":738,"width":438,"height":12}},{"id":"be6a6d0a-ad47-484d-959a-4d6b13299d5e","block_type":"box","text":"there is a risk that municipal yields will","page_number":173,"box":{"x":561,"y":738,"width":283,"height":12}},{"id":"78547fbc-14c6-4a96-89ec-2d4ee9d81220","block_type":"box","text":"move in the opposite direction than anticipated by a Fund, which would cause the Fund to make","page_number":173,"box":{"x":117,"y":754,"width":711,"height":12}},{"id":"ef9a5c84-f312-44c9-8180-641b14bade44","block_type":"box","text":"payments to its counterparty in the transaction that could adversely affect the Fund’s performance.","page_number":173,"box":{"x":117,"y":769,"width":729,"height":12}},{"id":"a8459c01-694a-4afb-a358-1ec9e068a387","block_type":"box","text":"Insured Municipal Bonds.","page_number":173,"box":{"x":117,"y":800,"width":186,"height":12}},{"id":"a74d0a44-c7d5-4d48-8c19-d1bf8650baaa","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees","page_number":173,"box":{"x":310,"y":800,"width":555,"height":12}},{"id":"8491bfcd-2707-41b4-9c71-bef0d460772a","block_type":"box","text":"that interest payments on the bond will be made on time and the principal will be repaid when the bond","page_number":173,"box":{"x":116,"y":816,"width":762,"height":12}},{"id":"6d4e2b8b-1519-47b2-a22d-d3a9d283935c","block_type":"box","text":"matures. Either the issuer of the bond or the Fund purchases the insurance. Insurance is expected to","page_number":173,"box":{"x":117,"y":831,"width":755,"height":12}},{"id":"f1554f5c-02e0-4220-aa34-f669faeeddf3","block_type":"box","text":"protect the Fund against losses caused by a bond issuer’s failure to make interest or principal","page_number":173,"box":{"x":117,"y":847,"width":699,"height":12}},{"id":"2f13a1ca-e8db-49c0-bc16-b2d3e166979b","block_type":"box","text":"payments. However, insurance does not protect the Fund or its shareholders against losses caused by","page_number":173,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"06bfc895-351c-4b1d-b013-cb8ff1103dd9","block_type":"box","text":"declines in a bond’s market value. Also, the Fund cannot be certain that any insurance company does","page_number":173,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"6ea51c1b-85ad-46b0-a433-827edd753109","block_type":"box","text":"II-79","page_number":173,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4a24f91c-465d-4f4a-8f13-e4a4df2d5d45","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":173,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3735db4b-9798-47d0-8c65-cc88058f15f1","block_type":"box","text":"not make these payments. In addition, if the Fund purchases the insurance, it may pay the premiums,","page_number":174,"box":{"x":117,"y":87,"width":758,"height":12}},{"id":"f79114dc-d96f-4023-9a89-ac505ed18b3c","block_type":"box","text":"which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims","page_number":174,"box":{"x":116,"y":103,"width":721,"height":12}},{"id":"54713091-75f0-4b85-9d10-95ccf02c668a","block_type":"box","text":"paying ability, financial strength, or equivalent ratings of at least investment grade. However, if","page_number":174,"box":{"x":117,"y":118,"width":703,"height":12}},{"id":"100bb573-a861-40bf-9156-6d4ada080065","block_type":"box","text":"insurance from insurers with these ratings is not available, the Fund may use insurance companies","page_number":174,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"eebcf1ed-5c19-43de-80c4-d0141606ccb9","block_type":"box","text":"with lower ratings or stop purchasing insurance or insured bonds. If a bond’s insurer fails to fulfill its","page_number":174,"box":{"x":116,"y":149,"width":742,"height":12}},{"id":"3b55a574-0753-42f6-94c2-50351ef5fbe3","block_type":"box","text":"obligations or loses its credit rating, the value of the bond could drop.","page_number":174,"box":{"x":116,"y":165,"width":517,"height":12}},{"id":"2708341c-19ea-48fe-bef9-8630e75ae82b","block_type":"box","text":"Build America Bonds.","page_number":174,"box":{"x":116,"y":196,"width":159,"height":9}},{"id":"a0fa2090-c7c4-4c0c-9c55-e6169635d1e7","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S.","page_number":174,"box":{"x":276,"y":196,"width":604,"height":12}},{"id":"8a1842fb-439c-4db7-ac49-072350c21ad0","block_type":"box","text":"federal income tax credit; however, the issuer of a Build America Bond may instead elect to receive a","page_number":174,"box":{"x":116,"y":211,"width":756,"height":12}},{"id":"11edb361-5212-493a-b2d4-5105f5380673","block_type":"box","text":"cash payment directly from the federal government in lieu of holders such as the fund receiving a tax","page_number":174,"box":{"x":116,"y":227,"width":752,"height":12}},{"id":"c8c272f5-c752-4f6d-ad9d-85d57dd6d02f","block_type":"box","text":"credit. The interest on Build America Bonds is taxable for U.S. federal income tax purposes. If the Fund","page_number":174,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"471f45ab-850f-48f3-a487-e26ad60668fa","block_type":"box","text":"does receive tax credits from Build America Bonds or other tax credit bonds on one or more specified","page_number":174,"box":{"x":116,"y":258,"width":757,"height":11}},{"id":"aa4063a9-924d-4b70-ad1f-9056ed8ae096","block_type":"box","text":"dates during the fund’s taxable year, and the Fund satisfies the minimum distribution requirement, the","page_number":174,"box":{"x":116,"y":273,"width":760,"height":12}},{"id":"c730e41a-5fe7-455b-b22c-68a972ba7efb","block_type":"box","text":"Fund may elect for U.S. federal income tax purposes to pass through to shareholders tax credits","page_number":174,"box":{"x":117,"y":289,"width":719,"height":12}},{"id":"61d0659c-5f94-4b25-aaa4-2b65addba346","block_type":"box","text":"otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond is defined in","page_number":174,"box":{"x":116,"y":304,"width":770,"height":12}},{"id":"3ac28580-30f7-45ba-95d5-87e64daad26a","block_type":"box","text":"the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":174,"box":{"x":116,"y":320,"width":761,"height":12}},{"id":"afd8a37c-4381-415b-9e1d-279ddee60f26","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy","page_number":174,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"397bab3a-9371-42be-bb44-f7429f1be587","block_type":"box","text":"bond, each of which must meet certain requirements specified in the Code), a “Build America Bond”","page_number":174,"box":{"x":117,"y":351,"width":744,"height":12}},{"id":"d90dcff1-498d-47e5-a94c-91730868bdf8","block_type":"box","text":"(which includes certain qualified bonds issued before January 1, 2011) or certain other specified","page_number":174,"box":{"x":117,"y":366,"width":717,"height":12}},{"id":"c94ae00e-9797-4830-8be4-5942149e04f9","block_type":"box","text":"bonds. If the Fund were to so elect, a shareholder would be required to include in income and would be","page_number":174,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"7e513aad-18fb-4d44-83d0-bc209c47846f","block_type":"box","text":"entitled to claim as a tax credit an amount equal to a proportionate share of such credits, and such","page_number":174,"box":{"x":116,"y":397,"width":735,"height":12}},{"id":"6092b688-47ad-4ff7-9676-f8bf5df476fe","block_type":"box","text":"amount would be subject to withholding provisions of the Code. Certain limitations may apply on the","page_number":174,"box":{"x":116,"y":413,"width":746,"height":12}},{"id":"b078cd36-1f57-4a3d-a87c-c5472f4afe5e","block_type":"box","text":"extent to which the credit may be claimed.","page_number":174,"box":{"x":116,"y":428,"width":318,"height":12}},{"id":"d5fb64ca-a425-4092-9040-bc270c48edf1","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":174,"box":{"x":118,"y":459,"width":263,"height":12}},{"id":"7ed431f4-ad04-437b-9f70-750ecadebc30","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which","page_number":174,"box":{"x":382,"y":459,"width":494,"height":12}},{"id":"0e7405bd-1dd9-4db3-b8e9-090be420b98f","block_type":"box","text":"may be in the form of tender option bonds, variable rate demand obligations, participations, beneficial","page_number":174,"box":{"x":117,"y":475,"width":757,"height":12}},{"id":"0304fc62-d4d7-40e1-aa83-2fe87df5513c","block_type":"box","text":"interests in a trust, partnership interests or other forms. These investments are described in greater","page_number":174,"box":{"x":117,"y":490,"width":741,"height":12}},{"id":"9a83fb08-d4a7-4107-b1ef-ce10399f6d3c","block_type":"box","text":"detail above in this section. Some of the structures used by certain Funds include interests in long-term","page_number":174,"box":{"x":116,"y":506,"width":771,"height":12}},{"id":"2e4afea9-7580-4d16-b67e-b0b1681e83ec","block_type":"box","text":"fixed-rate municipal debt obligations, held by a trustee or custodian, that are coupled with tender","page_number":174,"box":{"x":116,"y":521,"width":720,"height":12}},{"id":"5d39cba1-7842-45f7-868a-c1e8e743a51e","block_type":"box","text":"option, demand and other features when the tax-exempt municipal investments are created. Together,","page_number":174,"box":{"x":116,"y":537,"width":764,"height":12}},{"id":"6759d739-156f-4cdf-9afa-5277cb2d0190","block_type":"box","text":"these features entitle the holder of the interest to tender (or put) the underlying municipal debt","page_number":174,"box":{"x":116,"y":552,"width":701,"height":12}},{"id":"960619cc-68d1-4f73-ace5-b7cd5e42fcd3","block_type":"box","text":"obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":174,"box":{"x":116,"y":568,"width":667,"height":12}},{"id":"99f79b65-e228-47da-90e8-8c940e04d655","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to","page_number":174,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"14591e29-d1f5-47c1-9272-f00477831668","block_type":"box","text":"receive specific future interest payments, principal payments, or both, on the underlying securities held","page_number":174,"box":{"x":117,"y":614,"width":766,"height":12}},{"id":"aebc2943-c310-413f-b6ed-6b332f5653d9","block_type":"box","text":"by the custodian. Under such arrangements, the holder of the custodial receipt has the option to tender","page_number":174,"box":{"x":117,"y":630,"width":769,"height":12}},{"id":"dc0b0e72-8f1a-470f-b270-f2ab01fc59e4","block_type":"box","text":"the underlying securities at their face value to the sponsor (","page_number":174,"box":{"x":116,"y":645,"width":440,"height":12}},{"id":"34c22d8c-b881-43c8-8a2f-ff0f1a21213d","block_type":"box","text":"e.g.","page_number":174,"box":{"x":557,"y":648,"width":26,"height":9}},{"id":"548cfcfc-56f7-48b8-89cb-1de66ddcd25b","block_type":"box","text":", a Fund, or a bank or broker-dealer or","page_number":174,"box":{"x":586,"y":645,"width":289,"height":11}},{"id":"ec92fa72-fcdf-483e-bb3c-de25b7090000","block_type":"box","text":"other financial institution), which is paid periodic fees equal to the difference between the securities’","page_number":174,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"c5c18c32-2d0e-4619-9314-e7fc58c0588a","block_type":"box","text":"fixed coupon rate and the rate that would cause the securities, coupled with the tender option, to trade","page_number":174,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"371c24dd-a009-4299-9058-1c73774536df","block_type":"box","text":"at par on the date of a rate adjustment.","page_number":174,"box":{"x":116,"y":692,"width":289,"height":12}},{"id":"3d99de55-ecd6-48ff-b43f-d0e450a42424","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the","page_number":174,"box":{"x":116,"y":723,"width":747,"height":12}},{"id":"a8366fb3-f471-4847-9219-b16f82e845b9","block_type":"box","text":"Fund’s participation bears to the total principal amount of the Municipal Bond, and typically provides for","page_number":174,"box":{"x":117,"y":738,"width":764,"height":12}},{"id":"9790c8ab-d796-4c8e-9c30-ad07e3cfb3db","block_type":"box","text":"a repurchase feature for all or any part of the full principal amount of the participation interest, plus","page_number":174,"box":{"x":116,"y":754,"width":729,"height":12}},{"id":"f5abb4c1-a861-4a83-80ff-1dca319d243f","block_type":"box","text":"accrued interest. Trusts and partnerships are typically used to convert long-term fixed rate high quality","page_number":174,"box":{"x":116,"y":769,"width":759,"height":12}},{"id":"d02c2e6b-2bd9-4373-b506-b10b1ac26d67","block_type":"box","text":"bonds of a single state or municipal issuer into variable or floating rate demand instruments.","page_number":174,"box":{"x":117,"y":785,"width":680,"height":12}},{"id":"b7021c53-4142-4972-bdbb-e2ab4e3c9525","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt","page_number":174,"box":{"x":116,"y":816,"width":741,"height":12}},{"id":"96eb2e27-c817-4272-b74b-2306288c9ab9","block_type":"box","text":"obligations which give the holder the right to receive payment of principal subject to the conditions","page_number":174,"box":{"x":116,"y":831,"width":731,"height":12}},{"id":"cbc6b164-adde-4c67-b7ae-774a481cdd01","block_type":"box","text":"described above. The IRS has not ruled on whether the interest received on tax-exempt municipal","page_number":174,"box":{"x":116,"y":847,"width":732,"height":12}},{"id":"b5aae9aa-8044-4f26-82fd-63ab46ea944b","block_type":"box","text":"investments in the form of participation interests or custodial receipts is tax-exempt, and accordingly,","page_number":174,"box":{"x":117,"y":862,"width":751,"height":12}},{"id":"c996eaba-3405-4717-a8c8-757a5bb231a0","block_type":"box","text":"purchases of any such interests or receipts are based on the opinions of counsel to the sponsors of","page_number":174,"box":{"x":117,"y":878,"width":742,"height":12}},{"id":"0a6fc720-f77a-4450-8fc3-10614b88fd39","block_type":"box","text":"II-80","page_number":174,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ad24dc4b-9185-4370-9817-3cfca17322b9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":174,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1d06b1fd-d3f8-429c-b777-24eaf68cc367","block_type":"box","text":"such derivative securities. Neither a Fund nor its investment adviser or sub-advisers will review the","page_number":175,"box":{"x":116,"y":87,"width":738,"height":10}},{"id":"7387630e-f0df-4852-8b60-c7095d7a6a73","block_type":"box","text":"proceedings related to the creation of any tax-exempt municipal investments or the basis for such","page_number":175,"box":{"x":117,"y":102,"width":728,"height":13}},{"id":"bebf3f9e-b101-487e-a01a-58483de968a5","block_type":"box","text":"opinions.","page_number":175,"box":{"x":116,"y":118,"width":72,"height":12}},{"id":"8392c7d7-4c91-4f9c-9f9e-6ff91b262514","block_type":"box","text":"Operational and Technology Risks.","page_number":175,"box":{"x":117,"y":146,"width":279,"height":12}},{"id":"561e1834-c8be-4d97-acdf-579cb7933a0e","block_type":"box","text":"The Fund and the entities with which it interacts directly or","page_number":175,"box":{"x":397,"y":146,"width":442,"height":12}},{"id":"8f036188-325b-40d6-8f76-9085c710acdf","block_type":"box","text":"indirectly are susceptible to operational and technology risks, including those related to human errors,","page_number":175,"box":{"x":117,"y":162,"width":758,"height":12}},{"id":"c7052b4d-768c-493a-8276-47426fafdfa0","block_type":"box","text":"processing errors, communication errors, systems failures, cybersecurity incidents, and the use of","page_number":175,"box":{"x":117,"y":177,"width":731,"height":12}},{"id":"4f39e6df-b923-4756-96c1-f43b7ac631bf","block_type":"box","text":"artificial intelligence and machine learning (“AI”), which may result in losses for the Fund and its","page_number":175,"box":{"x":116,"y":192,"width":713,"height":13}},{"id":"de4a2f22-d7f1-4601-95f8-09645ee5dd2d","block_type":"box","text":"shareholders or impair the Fund’s operations. These entities include, but are not limited to, the Fund’s","page_number":175,"box":{"x":116,"y":208,"width":760,"height":12}},{"id":"b0001eac-9d34-46cb-9161-93b152d5100f","block_type":"box","text":"adviser, administrator, distributor, other service providers (e.g., index and benchmark providers,","page_number":175,"box":{"x":116,"y":223,"width":716,"height":13}},{"id":"af0bf36b-61e4-4dba-b372-093bc371909e","block_type":"box","text":"accountants, custodians, and transfer agents), financial intermediaries, counterparties, market makers,","page_number":175,"box":{"x":116,"y":239,"width":768,"height":12}},{"id":"5cb93ef3-fca9-4c2a-8674-227356e48e28","block_type":"box","text":"Authorized Participants, listing exchanges, other financial market operators, and governmental","page_number":175,"box":{"x":116,"y":254,"width":706,"height":13}},{"id":"18dcf71d-a293-4aea-8ea4-ed9312fb4895","block_type":"box","text":"authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":175,"box":{"x":116,"y":270,"width":748,"height":12}},{"id":"cb849f59-b886-4407-bc89-82d6a5d965df","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s","page_number":175,"box":{"x":116,"y":285,"width":711,"height":13}},{"id":"7d9fc7ee-805a-4ef3-b705-90ad7ff5cf95","block_type":"box","text":"investments in such issuers to lose value. The Fund may incur substantial costs in order to mitigate","page_number":175,"box":{"x":117,"y":301,"width":741,"height":12}},{"id":"c4791ea3-d832-47b6-9c0c-5a0e1664b97a","block_type":"box","text":"operational and technology risks.","page_number":175,"box":{"x":116,"y":317,"width":250,"height":12}},{"id":"7159382f-1078-4392-b633-e6af04bc5597","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in","page_number":175,"box":{"x":117,"y":344,"width":754,"height":12}},{"id":"aad4dbc5-6e31-4643-92c3-cacc1cdca6fc","block_type":"box","text":"which the Fund invests, the Fund or any of its service providers. They include, but are not limited to,","page_number":175,"box":{"x":116,"y":360,"width":746,"height":12}},{"id":"37fe43ec-7e4a-4288-ab9e-d4320b1711db","block_type":"box","text":"gaining unauthorized access to systems, misappropriating assets or sensitive information, corrupting or","page_number":175,"box":{"x":116,"y":375,"width":772,"height":12}},{"id":"1c78acfd-356f-4c7f-a443-682acdbb0ad3","block_type":"box","text":"destroying data, and causing operational disruption. Geopolitical tension may increase the scale and","page_number":175,"box":{"x":116,"y":391,"width":751,"height":12}},{"id":"a5dcf56b-c73d-4265-9276-83d272524456","block_type":"box","text":"sophistication of deliberate attacks, particularly those from nation states or from entities with nation","page_number":175,"box":{"x":116,"y":406,"width":738,"height":12}},{"id":"dcca9fdd-3cd5-444e-884c-26b11912dc69","block_type":"box","text":"state backing. 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AI technology advancements, including efficiency","page_number":175,"box":{"x":116,"y":670,"width":703,"height":12}},{"id":"bbd6bcd1-62cc-40f0-a438-8055d903a92e","block_type":"box","text":"improvements, without related increases in the adoption and development of such technologies, could","page_number":175,"box":{"x":117,"y":685,"width":755,"height":13}},{"id":"bba5e6c6-842c-489b-bdb2-23165b99139b","block_type":"box","text":"also negatively impact demand for, and the valuation of, digital infrastructure assets.","page_number":175,"box":{"x":116,"y":701,"width":624,"height":12}},{"id":"dc56f020-c7ce-40ca-86a6-dbf98dd24c1f","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party","page_number":175,"box":{"x":116,"y":729,"width":727,"height":12}},{"id":"612c66f6-f8f7-4ae6-a3a9-57a01d65d87c","block_type":"box","text":"service providers or any counterparties, whether or not known to the Fund, also use AI technology in","page_number":175,"box":{"x":116,"y":745,"width":745,"height":11}},{"id":"914e22c5-66ab-4500-8b4d-f592ee2c3bf7","block_type":"box","text":"their business activities. The Fund and its service providers may not be in a position to control the use","page_number":175,"box":{"x":116,"y":760,"width":756,"height":12}},{"id":"f6b22a7c-0c07-4bf6-944d-6f115f036145","block_type":"box","text":"of AI technology in third-party products or services.","page_number":175,"box":{"x":116,"y":775,"width":377,"height":12}},{"id":"b1a7f9d1-9c57-4210-ad9b-d6a752b57bb7","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable","page_number":175,"box":{"x":117,"y":803,"width":745,"height":12}},{"id":"28be3b76-f799-41f6-afa3-ef3a038b5bc9","block_type":"box","text":"policies, contractual or other obligations or restrictions, resulting in such confidential information","page_number":175,"box":{"x":117,"y":819,"width":708,"height":12}},{"id":"d98df7ab-82ed-4d49-aad2-1637aaff0ed7","block_type":"box","text":"becoming accessible by other third-party AI technology applications and users.","page_number":175,"box":{"x":117,"y":834,"width":589,"height":12}},{"id":"8c6db468-ff48-4ff0-ad8c-712e581f9353","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and","page_number":175,"box":{"x":117,"y":862,"width":706,"height":12}},{"id":"18b17556-5547-4f2a-a379-f55a7a973f5a","block_type":"box","text":"analysis of large amounts of data, may incorporate biased or inaccurate data, and it is not possible or","page_number":175,"box":{"x":116,"y":878,"width":757,"height":12}},{"id":"93a89d01-f4c1-4bff-bd63-854db418cdd0","block_type":"box","text":"II-81","page_number":175,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"94919479-2994-4f5f-af1c-327ae5c21723","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":175,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"173c410c-1c5f-445b-989b-266edaec71b3","block_type":"box","text":"practicable to incorporate all relevant data into the models that AI technology utilizes to operate.","page_number":176,"box":{"x":117,"y":87,"width":715,"height":12}},{"id":"2a661c8b-8578-4f60-9f44-40759f176fac","block_type":"box","text":"Certain data in such models will inevitably contain a degree of inaccuracy and error, or could otherwise","page_number":176,"box":{"x":117,"y":102,"width":768,"height":13}},{"id":"95664288-6c85-49e4-819c-37dd2849c1e9","block_type":"box","text":"be inadequate or flawed, which would be likely to degrade the effectiveness of AI technology. The","page_number":176,"box":{"x":117,"y":118,"width":729,"height":12}},{"id":"c50cd423-5d0c-4e96-a662-023aee97fc1a","block_type":"box","text":"output or results of any such AI technologies may therefore be incomplete, erroneous, distorted or","page_number":176,"box":{"x":116,"y":134,"width":733,"height":12}},{"id":"0a3db212-c302-40c4-83c5-849befbca953","block_type":"box","text":"misleading. Further, AI tools may lack transparency as to how data is utilized and how outputs are","page_number":176,"box":{"x":117,"y":149,"width":731,"height":12}},{"id":"b1d34d1b-813d-43f5-968b-97ef2d8dfe47","block_type":"box","text":"generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":176,"box":{"x":116,"y":165,"width":684,"height":12}},{"id":"421aaacf-2b4a-49a3-9635-0d2995e5dd56","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to","page_number":176,"box":{"x":117,"y":180,"width":764,"height":12}},{"id":"9db9b6ab-7177-4564-95be-517cf2ccc509","block_type":"box","text":"the risks of AI technology use, any such inaccuracies or errors could have adverse impacts on the","page_number":176,"box":{"x":116,"y":196,"width":732,"height":12}},{"id":"f86dfb74-deca-4128-9517-b287af715870","block_type":"box","text":"Fund or its investments.","page_number":176,"box":{"x":117,"y":211,"width":182,"height":10}},{"id":"519f1235-2877-491d-a764-85ca6af1a137","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to","page_number":176,"box":{"x":117,"y":242,"width":705,"height":12}},{"id":"e50427a3-f2c4-4fdd-b58d-99cd1d6e0a40","block_type":"box","text":"monitoring and compliance. 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In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial Intelligence","page_number":176,"box":{"x":116,"y":335,"width":769,"height":12}},{"id":"1dd77906-f34a-4422-97b1-b0b9f19407df","block_type":"box","text":"Act, which applies to certain AI technology and the","page_number":176,"box":{"x":116,"y":351,"width":380,"height":12}},{"id":"8fad51c6-ccd7-49ba-a5c3-7b3fa8dcdc41","block_type":"box","text":"data used to train, test, and deploy them, which","page_number":176,"box":{"x":497,"y":351,"width":357,"height":12}},{"id":"7282a8f0-601f-4841-9cd3-786228fea200","block_type":"box","text":"may create additional compliance burdens, higher administrative costs, and significant penalties should","page_number":176,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"1df21888-75d7-45d5-b165-12c6cf0ecfae","block_type":"box","text":"the Fund, the adviser, or the Fund’s portfolio investments fail to comply.","page_number":176,"box":{"x":116,"y":382,"width":537,"height":12}},{"id":"a16142f7-4bba-469d-b657-b823c5031b91","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to","page_number":176,"box":{"x":116,"y":413,"width":711,"height":12}},{"id":"1d74054d-51b4-490a-9693-b63f9b06f692","block_type":"box","text":"develop rapidly, and it is impossible to predict the future risks that may arise from such developments.","page_number":176,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"2efa3c4a-fd0b-4be5-a73b-c131037c0dc8","block_type":"box","text":"The full extent of current or future risks related thereto is not possible to predict, and the Fund may not","page_number":176,"box":{"x":116,"y":444,"width":765,"height":12}},{"id":"3018a8b1-79be-4b57-9128-470abe1db561","block_type":"box","text":"be able to anticipate, prevent, mitigate, or remediate all of the potential risks, challenges, or impacts of","page_number":176,"box":{"x":117,"y":459,"width":763,"height":12}},{"id":"3a8b5718-ec05-4412-86e5-996cfcca2685","block_type":"box","text":"such changes.","page_number":176,"box":{"x":116,"y":475,"width":113,"height":12}},{"id":"7202cb40-d39c-4d40-a901-64008a179e8a","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security","page_number":176,"box":{"x":116,"y":506,"width":750,"height":12}},{"id":"fd45612c-924e-4ee2-bd4d-767f9e40756c","block_type":"box","text":"and cybersecurity risk management policies and procedures, their methods of risk management may","page_number":176,"box":{"x":116,"y":521,"width":753,"height":12}},{"id":"35fa8685-e939-4d9f-bdda-87544a98e86f","block_type":"box","text":"differ from those of the Fund in the setting of priorities, the personnel and resources available or the","page_number":176,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"97786139-f683-4c47-aa99-158d74abec2e","block_type":"box","text":"effectiveness of relevant controls. The Fund and its adviser seek to reduce these risks through","page_number":176,"box":{"x":116,"y":552,"width":706,"height":12}},{"id":"9819d89c-3693-4ce8-a747-ee73b8e78523","block_type":"box","text":"controls, procedures and oversight, including establishing business continuity plans and risk","page_number":176,"box":{"x":116,"y":568,"width":687,"height":12}},{"id":"2a84e323-bc48-452e-a053-61dd1e98164a","block_type":"box","text":"management systems. However, there are inherent limitations in such plans and systems, including","page_number":176,"box":{"x":117,"y":583,"width":744,"height":12}},{"id":"70f3b7ab-6de8-4e21-a8b3-2a4c67356492","block_type":"box","text":"the possibility that certain risks that may affect the Fund have not been identified or may emerge in the","page_number":176,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"ebbfc9a1-f71c-42f2-b036-d05b4ff51d6a","block_type":"box","text":"future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":176,"box":{"x":116,"y":614,"width":719,"height":12}},{"id":"ef14cf1b-4c70-49fa-b933-08f7851afaee","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that","page_number":176,"box":{"x":116,"y":630,"width":766,"height":12}},{"id":"c433bb24-26b7-4e8e-a181-f79a7bba0dfa","block_type":"box","text":"prevention and remediation efforts will not be successful or that incidents will go undetected. 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Regulators continue to develop new rules and standards","page_number":176,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"d22dcb23-53f4-487a-8b60-e5168db915f0","block_type":"box","text":"related to cybersecurity and data protection. Compliance with evolving regulations can be demanding","page_number":176,"box":{"x":117,"y":738,"width":750,"height":12}},{"id":"cded55c7-a760-48fc-8a6f-e53b604060f7","block_type":"box","text":"and costly, requiring substantial resources to monitor and implement required changes.","page_number":176,"box":{"x":116,"y":754,"width":647,"height":12}},{"id":"55ad6dee-05b0-4a58-a455-e448e5e74057","block_type":"box","text":"Participation Notes.","page_number":176,"box":{"x":116,"y":785,"width":157,"height":12}},{"id":"3add6d1a-d8b0-4b98-a57a-d1ec83ac2585","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that","page_number":176,"box":{"x":279,"y":785,"width":586,"height":12}},{"id":"a89fcd11-0147-41be-b01d-e2f37bfe9ef4","block_type":"box","text":"entitle the Fund to a return measured by the change in value of an identified underlying security or","page_number":176,"box":{"x":116,"y":800,"width":729,"height":12}},{"id":"f189d808-9b27-442e-8941-215fb437b329","block_type":"box","text":"basket of securities (collectively, the “underlying security”). Participation notes are typically used when","page_number":176,"box":{"x":117,"y":816,"width":755,"height":12}},{"id":"007f8a36-1585-46b6-985c-ba76a59a02ba","block_type":"box","text":"a direct investment in the underlying security is restricted due to country-specific regulations.","page_number":176,"box":{"x":116,"y":831,"width":692,"height":12}},{"id":"156ccedb-571b-4091-ab0f-80a5173fd14a","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note","page_number":176,"box":{"x":116,"y":862,"width":766,"height":12}},{"id":"b5fa3846-8e7a-473a-9bc8-523ca8d231af","block_type":"box","text":"is not the same as investment in the constituent shares of the company. 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A participation note does not provide any beneficial or equitable","page_number":177,"box":{"x":116,"y":102,"width":725,"height":13}},{"id":"82cb9717-ed68-4598-a902-d323bdc478d5","block_type":"box","text":"entitlement or interest in the relevant underlying security. In other words, shares of the underlying","page_number":177,"box":{"x":116,"y":118,"width":727,"height":12}},{"id":"b093465a-9e56-4de1-bfce-74ca6e506727","block_type":"box","text":"security are not in any way owned by the Fund. However, each participation note synthetically","page_number":177,"box":{"x":116,"y":134,"width":702,"height":12}},{"id":"c721bf52-bfb4-4c3b-b3e0-999acdbd3b26","block_type":"box","text":"replicates the economic benefit of holding shares in the underlying security. 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A Fund attempts to mitigate that risk by purchasing only from issuers","page_number":177,"box":{"x":117,"y":196,"width":689,"height":12}},{"id":"305f652f-2d43-4b9a-b4d4-3671db24f653","block_type":"box","text":"determined to be creditworthy.","page_number":177,"box":{"x":116,"y":211,"width":231,"height":12}},{"id":"ff176002-5799-4e7a-a04f-d45d1554d76a","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge","page_number":177,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"7f2088f9-a485-4f55-a025-da10fdd38e5c","block_type":"box","text":"its obligation. A Fund may, but is not required to, purchase credit protection against the default of the","page_number":177,"box":{"x":117,"y":258,"width":752,"height":12}},{"id":"eff3845e-91c3-4752-b7b8-f3c6d66ba025","block_type":"box","text":"issuer. When the participation note expires or a Fund exercises the participation note and closes its","page_number":177,"box":{"x":117,"y":273,"width":742,"height":12}},{"id":"6601a393-ac73-43db-b072-f44a75277339","block_type":"box","text":"position, the Fund receives a payment that is based upon the then-current value of the underlying","page_number":177,"box":{"x":117,"y":289,"width":728,"height":12}},{"id":"5e1000e2-a519-4cc7-ad64-ad26b09c3ebb","block_type":"box","text":"security converted into U.S. dollars (less transaction costs). The price, performance and liquidity of a","page_number":177,"box":{"x":116,"y":304,"width":751,"height":12}},{"id":"0e649cae-2e85-43ba-b3f5-aa2efb63ea61","block_type":"box","text":"participation note are all linked directly to the underlying security. A Fund’s ability to redeem or","page_number":177,"box":{"x":117,"y":320,"width":704,"height":12}},{"id":"27a50537-c6af-40de-a80a-78a63e19bea1","block_type":"box","text":"exercise a participation note generally is dependent on the liquidity in the local trading market for the","page_number":177,"box":{"x":116,"y":335,"width":750,"height":12}},{"id":"2d2c4fc4-886b-4aa7-8c43-bb9174d1b4c9","block_type":"box","text":"security underlying the participation note.","page_number":177,"box":{"x":116,"y":351,"width":310,"height":12}},{"id":"c8f0c726-7e39-494b-996c-45f43466204a","block_type":"box","text":"Portfolio Turnover Rates.","page_number":177,"box":{"x":116,"y":382,"width":201,"height":9}},{"id":"a964935b-2f39-40d9-b9cb-16fbef6b74a9","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale","page_number":177,"box":{"x":318,"y":382,"width":569,"height":12}},{"id":"222208e7-f10e-4d38-a32a-2383d2dbea78","block_type":"box","text":"or purchase when the Manager believes investment considerations warrant such sale or purchase.","page_number":177,"box":{"x":116,"y":397,"width":738,"height":12}},{"id":"c10acd3b-24f8-4757-94b3-1c796eb105f6","block_type":"box","text":"Although certain Funds will use an approach to investing that is largely a passive, indexing approach,","page_number":177,"box":{"x":116,"y":413,"width":756,"height":12}},{"id":"79568d5c-f46f-43fb-a13e-dd71f46e749e","block_type":"box","text":"such Funds may engage in a substantial number of portfolio transactions. With respect to these Funds,","page_number":177,"box":{"x":116,"y":428,"width":770,"height":12}},{"id":"a3551c4b-6bdf-4edd-a2c4-a8b93547e9f8","block_type":"box","text":"the rate of portfolio turnover will be a limiting factor when the Manager considers whether to purchase","page_number":177,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"c1d0215a-a802-4720-bea2-bcc8be513789","block_type":"box","text":"or sell securities for a Fund only to the extent that the Manager will consider the impact of transaction","page_number":177,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"66999d33-e74f-4dfe-82d7-70543e625115","block_type":"box","text":"costs on a Fund’s tracking error. Portfolio turnover may vary greatly from year to year as well as within","page_number":177,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"a19c819f-013e-4f68-a3f7-504d0824e2eb","block_type":"box","text":"a particular year. High portfolio turnover (","page_number":177,"box":{"x":116,"y":490,"width":305,"height":12}},{"id":"07fae852-681d-4512-abb7-48acae7c659f","block_type":"box","text":"i.e.","page_number":177,"box":{"x":422,"y":490,"width":21,"height":10}},{"id":"f98bfdc3-7b77-4916-860d-76844c8d9307","block_type":"box","text":", 100% or more) may result in increased transaction costs","page_number":177,"box":{"x":446,"y":490,"width":433,"height":12}},{"id":"a24890cb-5917-4ecd-9c04-3cece5df0eb3","block_type":"box","text":"to a Fund, including brokerage commissions, dealer mark-ups and other transaction costs on the sale","page_number":177,"box":{"x":116,"y":506,"width":759,"height":12}},{"id":"043aae54-ed48-4754-849c-7b8cd37a4eb4","block_type":"box","text":"of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in the","page_number":177,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"1b014b99-7f2c-4288-8d96-664ac90be391","block_type":"box","text":"recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short","page_number":177,"box":{"x":117,"y":537,"width":743,"height":12}},{"id":"37bce7e7-1dde-424d-8f51-a7cc6a027519","block_type":"box","text":"term capital gain or loss. These effects of higher than normal portfolio turnover may adversely affect a","page_number":177,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"47e1e06e-f9bc-4131-a320-890362c2da14","block_type":"box","text":"Fund’s performance.","page_number":177,"box":{"x":117,"y":568,"width":158,"height":12}},{"id":"1b3d627d-6a45-4107-a056-213f9b43c381","block_type":"box","text":"Preferred Stock.","page_number":177,"box":{"x":116,"y":599,"width":126,"height":9}},{"id":"1a4b2e44-3eeb-43de-82dc-4a7ee6a3e381","block_type":"box","text":"Certain Funds may invest in preferred sto","page_number":177,"box":{"x":243,"y":599,"width":306,"height":12}},{"id":"0d8390da-1c47-4786-8a78-1a1501c08b18","block_type":"box","text":"cks. Preferred stock has a preference over","page_number":177,"box":{"x":550,"y":599,"width":314,"height":12}},{"id":"f3e63c5e-3a55-4f80-8e98-501815d9b079","block_type":"box","text":"common stock in liquidation (and generally dividends","page_number":177,"box":{"x":116,"y":614,"width":384,"height":12}},{"id":"a9301dad-028e-48aa-a44f-3c382047e671","block_type":"box","text":"as well) but is subordinated to bond holders and","page_number":177,"box":{"x":501,"y":614,"width":358,"height":12}},{"id":"8b19ebcf-8c41-4844-a055-5df22ab8023a","block_type":"box","text":"other creditors in all respects. As a general rule, t","page_number":177,"box":{"x":116,"y":630,"width":357,"height":12}},{"id":"e91ea504-3401-4e51-bab0-78dba76fb2ea","block_type":"box","text":"he market value of preferred stock with a fixed dividend","page_number":177,"box":{"x":474,"y":630,"width":406,"height":12}},{"id":"14a31e9b-1fd8-4f0d-a39b-7dac3e7f5867","block_type":"box","text":"rate and no conversion element varies inversely with","page_number":177,"box":{"x":117,"y":645,"width":386,"height":12}},{"id":"077af4e4-62c2-4dc2-b0cd-094f070ccb57","block_type":"box","text":"interest rates and perceived credit risk, while the","page_number":177,"box":{"x":504,"y":645,"width":355,"height":12}},{"id":"9af1bb2b-1297-40b2-adf2-323a62bd16e2","block_type":"box","text":"market price of convertible preferred stock generally","page_number":177,"box":{"x":117,"y":661,"width":377,"height":12}},{"id":"ec830df3-3992-4cc5-9edb-3c035ec84312","block_type":"box","text":"also reflects some element of conversion value.","page_number":177,"box":{"x":499,"y":661,"width":345,"height":9}},{"id":"e3f6cfde-d78e-4391-95ce-5ea4929bc54a","block_type":"box","text":"Because preferred stock is junior to debt securities","page_number":177,"box":{"x":117,"y":676,"width":367,"height":12}},{"id":"76a9736c-06cc-4afa-8c8a-298baa2c5f47","block_type":"box","text":"and other obligations of the issuer, deterioration in the","page_number":177,"box":{"x":489,"y":676,"width":391,"height":12}},{"id":"43b5d3c6-1223-46c0-a60f-b5bf5caef718","block_type":"box","text":"credit quality of the issuer will cause greater changes in","page_number":177,"box":{"x":116,"y":692,"width":402,"height":12}},{"id":"4fa4c612-9b93-486f-aa98-16f3054733ff","block_type":"box","text":"the value of a preferred stock than in a more","page_number":177,"box":{"x":523,"y":692,"width":323,"height":12}},{"id":"f317a399-ab1e-44d7-ae4f-5e01b77d3100","block_type":"box","text":"senior debt security with similar stated yield characte","page_number":177,"box":{"x":116,"y":707,"width":383,"height":12}},{"id":"09664523-aa4d-48f4-bdf6-d2f462b7df38","block_type":"box","text":"ristics. Unlike interest payments on debt securities,","page_number":177,"box":{"x":500,"y":707,"width":367,"height":12}},{"id":"46221a77-06f0-44f3-8851-8d98d1f0c016","block_type":"box","text":"preferred stock dividends are payable only if declared by","page_number":177,"box":{"x":117,"y":723,"width":410,"height":12}},{"id":"f436f3cb-9ecb-4d6e-b004-e577e0d2f28c","block_type":"box","text":"the issuer’s board of di","page_number":177,"box":{"x":532,"y":723,"width":164,"height":9}},{"id":"46aa96f5-82ac-41f9-8ecb-1726a84425c5","block_type":"box","text":"rectors. Preferred stock","page_number":177,"box":{"x":698,"y":723,"width":170,"height":9}},{"id":"7e927da2-8a4f-48c7-8040-2f761520ef66","block_type":"box","text":"also may be subject to optional or mandatory redemption provisions.","page_number":177,"box":{"x":116,"y":738,"width":496,"height":12}},{"id":"af538517-e8b2-415f-b935-6e16aa86925b","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":177,"box":{"x":118,"y":769,"width":224,"height":12}},{"id":"fbd0dc0c-d635-43c7-ae6c-c1d0e9c7a648","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment","page_number":177,"box":{"x":350,"y":769,"width":497,"height":12}},{"id":"a56acb31-5315-457d-bf24-4374364107f3","block_type":"box","text":"funds that pay dividends that are exempt from regular U.S. federal income tax. Such funds in turn","page_number":177,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"f879fc3d-6aeb-43b2-b27b-33f6629916d4","block_type":"box","text":"invest in municipal bonds and other assets that pay interest or make distributions that are exempt from","page_number":177,"box":{"x":117,"y":800,"width":759,"height":12}},{"id":"4c977d26-60b9-442d-84a7-9b6112458627","block_type":"box","text":"regular U.S. federal income tax, such as revenue bonds issued by state or local agencies to fund the","page_number":177,"box":{"x":117,"y":816,"width":746,"height":12}},{"id":"69650c5f-ef38-4e74-98f3-24c224ee74af","block_type":"box","text":"development of low-income, multi-family housing. Investment in such tax-exempt preferred shares","page_number":177,"box":{"x":116,"y":831,"width":733,"height":12}},{"id":"a89bb5ef-db63-48aa-9fea-d225c4acb9bc","block_type":"box","text":"involves many of the same issues as investing in other investment companies. These investments also","page_number":177,"box":{"x":117,"y":847,"width":768,"height":12}},{"id":"faea1592-0078-46c3-b362-bc6f3f8ca403","block_type":"box","text":"have additional risks, including illiquid investments risk, the absence of regulation governing","page_number":177,"box":{"x":117,"y":862,"width":685,"height":12}},{"id":"8948f7e7-3b80-4855-a4c5-88d256a92cec","block_type":"box","text":"investment practices, capital structure and leverage, affiliated transactions and other matters, and","page_number":177,"box":{"x":117,"y":878,"width":729,"height":12}},{"id":"5dbbf964-8adb-4f12-b239-70d11d436f1e","block_type":"box","text":"II-83","page_number":177,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"713e6e64-08bc-4769-abdd-3018ea9de3f2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":177,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9dcd8c56-936c-4fe5-bd4f-01a70c1034fb","block_type":"box","text":"concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat","page_number":178,"box":{"x":116,"y":87,"width":740,"height":12}},{"id":"fdbe5cc8-64cb-4471-acd9-2f9f4f77a2dd","block_type":"box","text":"investments in tax-exempt preferred shares as investments in municipal bonds.","page_number":178,"box":{"x":117,"y":102,"width":593,"height":12}},{"id":"6fffcf7c-510d-4ff0-bc06-0563b68a4b21","block_type":"box","text":"Trust Preferred Securities.","page_number":178,"box":{"x":118,"y":134,"width":193,"height":9}},{"id":"6dad2b99-d1d6-4975-9148-0516a5a80da2","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred","page_number":178,"box":{"x":312,"y":134,"width":525,"height":12}},{"id":"6e79763c-d7d5-4f1d-a0c8-90f0b5e758bc","block_type":"box","text":"securities are typically issued by corporations, generally in the form of interest bearing notes with","page_number":178,"box":{"x":116,"y":149,"width":724,"height":12}},{"id":"cd361170-3ba0-4471-9485-f9f780a14ec6","block_type":"box","text":"preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the","page_number":178,"box":{"x":117,"y":165,"width":751,"height":12}},{"id":"f7e05ec9-2bf8-4333-8420-8ba654a5ca55","block_type":"box","text":"form of beneficial interests in subordinated debentures or similarly structured securities. The trust","page_number":178,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"c7b7cc84-472d-4e37-93ef-4b8533503a72","block_type":"box","text":"preferred securities market consists of both fixed and adjustable coupon rate securities that are either","page_number":178,"box":{"x":117,"y":196,"width":758,"height":12}},{"id":"8930bf0f-05f0-4aaa-9f92-d2ee9e7c34c4","block_type":"box","text":"perpetual in nature or have stated maturity dates.","page_number":178,"box":{"x":117,"y":211,"width":370,"height":12}},{"id":"777e32a1-7da8-40c3-b175-9ce22cc05ac9","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit","page_number":178,"box":{"x":116,"y":242,"width":748,"height":12}},{"id":"51c15c7c-d274-480e-8dcd-e760d3916c83","block_type":"box","text":"from a guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition,","page_number":178,"box":{"x":116,"y":258,"width":771,"height":12}},{"id":"4a5389b7-bd69-4888-aad1-5c4f686a714a","block_type":"box","text":"trust preferred securities typically permit an issuer to defer the payment of income for five years or","page_number":178,"box":{"x":116,"y":273,"width":733,"height":12}},{"id":"5eb416ed-5d4b-4121-9f11-5eebf65cb22e","block_type":"box","text":"more without triggering an event of default. Because of their subordinated position in the capital","page_number":178,"box":{"x":117,"y":289,"width":713,"height":12}},{"id":"0eaf9606-8b2e-4ea3-a29c-443113db260a","block_type":"box","text":"structure of an issuer, the ability to defer payments for extended periods of time without default","page_number":178,"box":{"x":116,"y":304,"width":708,"height":12}},{"id":"a3b7cdbe-bf6a-432a-8536-dc2ad5fc4ed1","block_type":"box","text":"consequences to the issuer, and certain other features (such as restrictions on common dividend","page_number":178,"box":{"x":116,"y":320,"width":725,"height":12}},{"id":"32313dd4-8e56-465e-be12-72f344c00ec2","block_type":"box","text":"payments by the issuer or ultimate guarantor when full cumulative payments on the trust preferred","page_number":178,"box":{"x":117,"y":335,"width":733,"height":12}},{"id":"0954ad02-b477-451e-bdae-a753cae70f0c","block_type":"box","text":"securities have not been made), these trust preferred securities are often treated as close substitutes","page_number":178,"box":{"x":116,"y":351,"width":756,"height":12}},{"id":"8bfd9499-abde-473b-b906-6618453b86b8","block_type":"box","text":"for traditional preferred securities, both by issuers and investors.","page_number":178,"box":{"x":116,"y":366,"width":483,"height":12}},{"id":"775d50fe-0ee2-48ab-a046-f2dc4bd4d6c3","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":178,"box":{"x":116,"y":397,"width":740,"height":12}},{"id":"51375b34-3d10-4915-8186-173501eb2101","block_type":"box","text":"®","page_number":178,"box":{"x":857,"y":396,"width":9,"height":7}},{"id":"4d83e070-f10a-42d5-ba0c-6c9f99f9d446","block_type":"box","text":"”);","page_number":178,"box":{"x":867,"y":397,"width":20,"height":12}},{"id":"82b47c26-1092-4be5-b8d4-e7c3662dbfde","block_type":"box","text":"monthly income preferred securities (“MIPS","page_number":178,"box":{"x":117,"y":413,"width":322,"height":12}},{"id":"daf46937-dfbd-4941-aa24-c53066556c48","block_type":"box","text":"®","page_number":178,"box":{"x":439,"y":412,"width":10,"height":7}},{"id":"156e4ca6-af35-46b1-a87e-4d480cd023ac","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":178,"box":{"x":449,"y":413,"width":330,"height":12}},{"id":"42b5c755-cc02-49d1-aeec-e50a35d4c8ef","block_type":"box","text":"®","page_number":178,"box":{"x":780,"y":412,"width":9,"height":7}},{"id":"332872a8-7380-4d58-abd6-9dbce878d705","block_type":"box","text":"” ); quarterly","page_number":178,"box":{"x":790,"y":413,"width":95,"height":12}},{"id":"02cab0d4-925b-4d0f-9a2e-db057ac9c1dc","block_type":"box","text":"income debt securities (“QUIDS","page_number":178,"box":{"x":117,"y":428,"width":234,"height":12}},{"id":"eaa74964-fe17-4770-a271-8ed3ed7fec69","block_type":"box","text":"®","page_number":178,"box":{"x":352,"y":427,"width":10,"height":7}},{"id":"e1eef96d-794c-4929-973c-353fe0e492b9","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":178,"box":{"x":362,"y":428,"width":361,"height":12}},{"id":"96bdaeb9-83c5-489d-8185-04c1361d5095","block_type":"box","text":"SM","page_number":178,"box":{"x":724,"y":428,"width":16,"height":6}},{"id":"31975c0d-08f4-419c-a056-9804bd7f3501","block_type":"box","text":"”); corporate trust","page_number":178,"box":{"x":741,"y":428,"width":133,"height":12}},{"id":"b9dd7d3c-06ae-438a-b4b3-51f71b51b65f","block_type":"box","text":"securities (“CORTS","page_number":178,"box":{"x":116,"y":444,"width":145,"height":12}},{"id":"9adb5608-34ee-4cca-884b-0bdd3e481677","block_type":"box","text":"®","page_number":178,"box":{"x":262,"y":443,"width":9,"height":7}},{"id":"46ce8cd0-ffc4-4b78-9ead-d28bb78b3444","block_type":"box","text":"”); public income notes (“PINES","page_number":178,"box":{"x":271,"y":444,"width":235,"height":12}},{"id":"41c09197-a036-4565-b71a-ffcf04467b9d","block_type":"box","text":"®","page_number":178,"box":{"x":507,"y":443,"width":9,"height":7}},{"id":"86c140fe-4c59-4ff3-b17e-b8e12036df15","block_type":"box","text":"”); and other trust preferred securities.","page_number":178,"box":{"x":517,"y":444,"width":287,"height":12}},{"id":"a4c7227e-da51-4f21-b331-c8e2ec27324f","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in","page_number":178,"box":{"x":116,"y":475,"width":766,"height":12}},{"id":"454b71a8-72d0-44ce-81cf-6c933f601bf2","block_type":"box","text":"nature. In certain instances, a final maturity date may be extended and/or the final payment of principal","page_number":178,"box":{"x":117,"y":490,"width":767,"height":12}},{"id":"e343ae14-7d4d-4703-86d7-bf8408172209","block_type":"box","text":"may be deferred at the issuer’s option for a specified time without default. No redemption can typically","page_number":178,"box":{"x":117,"y":506,"width":760,"height":12}},{"id":"c2a544f0-a8e8-4d20-83ec-86d969b37afd","block_type":"box","text":"take place unless all cumulative payment obligations have been met, although issuers may be able to","page_number":178,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"8a7eb4fd-e915-4f86-bd41-25791217b0cf","block_type":"box","text":"engage in open-market repurchases without regard to whether all payments have been paid.","page_number":178,"box":{"x":116,"y":537,"width":693,"height":12}},{"id":"e7096c26-125b-4216-bd10-f6e1fdddf4d5","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by","page_number":178,"box":{"x":117,"y":568,"width":737,"height":12}},{"id":"dd2aead4-e8ba-44f2-9d7b-6799993433bb","block_type":"box","text":"operating companies and are not a direct obligation of an operating company. At the time the trust or","page_number":178,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"db514d3a-d622-4031-b814-7c1111e73ca9","block_type":"box","text":"special purpose entity sells such preferred securities to investors, it purchases debt of the operating","page_number":178,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"56aeb548-210a-4ecc-a1b6-2f5f3bdf898c","block_type":"box","text":"company (with terms comparable to those of the trust or special purpose entity securities), which","page_number":178,"box":{"x":116,"y":614,"width":722,"height":12}},{"id":"5a4017f2-cb5b-4e49-8f86-bccfcb19e600","block_type":"box","text":"enables the operating company to deduct for tax purposes the interest paid on the debt held by the","page_number":178,"box":{"x":116,"y":630,"width":739,"height":12}},{"id":"ca9fed6c-d108-4827-ba8d-49508dc7147f","block_type":"box","text":"trust or special purpose entity. The trust or special purpose entity is generally required to be treated as","page_number":178,"box":{"x":116,"y":645,"width":765,"height":12}},{"id":"08eb019c-ee17-4af8-a1e8-ecd8ef9fb496","block_type":"box","text":"transparent for U.S. federal income tax purposes such that the holders of the trust preferred securities","page_number":178,"box":{"x":116,"y":661,"width":757,"height":12}},{"id":"b4f1295e-89bf-410f-b555-d167ce33a75b","block_type":"box","text":"are treated as owning beneficial interests in the underlying debt of the operating company. Accordingly,","page_number":178,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"bdf6b696-a953-4aa9-a044-0c5287e3bb02","block_type":"box","text":"payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":178,"box":{"x":117,"y":692,"width":757,"height":12}},{"id":"51b892f9-66aa-49ed-81ad-49ba6c50037e","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating","page_number":178,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"9e796a62-1147-4e84-8302-6137a1828d5c","block_type":"box","text":"company’s debt and would have priority with respect to the operating company’s earnings and profits","page_number":178,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"32f130e5-8b04-4c27-bc61-a13cadf6bff1","block_type":"box","text":"over the operating company’s common shareholders but would typically be subordinated to other","page_number":178,"box":{"x":116,"y":738,"width":720,"height":12}},{"id":"1388c8b5-e87d-4894-bc97-c86318714c12","block_type":"box","text":"classes of the operating company’s debt. Typically, a preferred share has a rating that is slightly below","page_number":178,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"4edae568-cb2b-4419-9878-966bb7e110c0","block_type":"box","text":"that of its corresponding operating company’s senior debt securities.","page_number":178,"box":{"x":116,"y":769,"width":506,"height":12}},{"id":"3287062a-ac36-4ade-8a1e-ab4c13232423","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":178,"box":{"x":116,"y":800,"width":324,"height":12}},{"id":"013bb9cb-185c-4baa-95a4-9516aee19c82","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in","page_number":178,"box":{"x":448,"y":800,"width":417,"height":12}},{"id":"145ed5e3-ef30-44c6-9431-b8a303424391","block_type":"box","text":"shares of REITs. REITs possess certain risks which differ from an investment in common stocks.","page_number":178,"box":{"x":116,"y":816,"width":718,"height":12}},{"id":"e5c5b617-6fcc-400f-844e-f0066e172786","block_type":"box","text":"REITs are financial vehicles that pool investor’s capital to purchase or finance real estate. REITs may","page_number":178,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"7fce9184-96e7-4f3c-9ee7-f3a2f63a0133","block_type":"box","text":"concentrate their investments in specific geographic areas or in specific property types,","page_number":178,"box":{"x":116,"y":847,"width":652,"height":12}},{"id":"b777a8d4-ff77-499c-9725-6150316c3eab","block_type":"box","text":"i.e.","page_number":178,"box":{"x":768,"y":847,"width":21,"height":9}},{"id":"3dbd5b71-7fcc-42b3-95db-2a60233b146c","block_type":"box","text":", hotels,","page_number":178,"box":{"x":792,"y":847,"width":62,"height":11}},{"id":"79b9855b-c21a-42c6-844d-ecd6ce2fe9de","block_type":"box","text":"shopping malls, residential complexes and office buildings.","page_number":178,"box":{"x":116,"y":862,"width":441,"height":12}},{"id":"a833a344-887d-434d-bf6f-ff705ed76a9a","block_type":"box","text":"II-84","page_number":178,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9269da3d-a82d-4b55-a787-0d30dd86724d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":178,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"146309eb-9935-4886-9338-9e539980bed1","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will","page_number":179,"box":{"x":117,"y":87,"width":752,"height":12}},{"id":"4eea8035-81fd-4064-b431-33a95ad00389","block_type":"box","text":"bear its proportionate share of the costs of the REITs’ operations. There are three general categories","page_number":179,"box":{"x":117,"y":102,"width":754,"height":13}},{"id":"b878560d-a728-47d8-918e-5afb4a136024","block_type":"box","text":"of REITs: Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee","page_number":179,"box":{"x":116,"y":118,"width":763,"height":12}},{"id":"58445391-2c3f-431e-a244-0124ed264fb1","block_type":"box","text":"ownership or leasehold ownership of real property, which derive most of their income from rents.","page_number":179,"box":{"x":116,"y":134,"width":721,"height":12}},{"id":"7e8d324f-4962-4096-8bf8-2281c13c628e","block_type":"box","text":"Mortgage REITs invest mostly in mortgages on real estate, which may secure construction,","page_number":179,"box":{"x":117,"y":149,"width":681,"height":12}},{"id":"de7cce56-3aab-4ad7-9964-5317fb29716c","block_type":"box","text":"development or long-term loans; the main source of their income is mortgage interest payments.","page_number":179,"box":{"x":116,"y":165,"width":720,"height":12}},{"id":"f45f9528-7a60-4486-9ab6-3275e65ce08f","block_type":"box","text":"Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":179,"box":{"x":117,"y":180,"width":541,"height":12}},{"id":"0c08be91-4418-408f-8b81-d93947965864","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in","page_number":179,"box":{"x":117,"y":211,"width":749,"height":12}},{"id":"82d8b852-af86-4b6c-a8ac-49c2eb8ad0cf","block_type":"box","text":"the real estate industry in general. The market value of REIT shares and the ability of the REITs to","page_number":179,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"96aa3254-b349-4204-a1fe-30d0ae4290ca","block_type":"box","text":"distribute income may be adversely affected by several factors, including rising interest rates, changes","page_number":179,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"adba3d48-93c9-456b-b25d-e62b59d44383","block_type":"box","text":"in the national, state and local economic climate and real estate conditions, occupancy and rental","page_number":179,"box":{"x":117,"y":258,"width":727,"height":12}},{"id":"360db840-e90f-4f25-b8cc-4d8aa03cef38","block_type":"box","text":"rates, perceptions of prospective tenants of the safety, convenience and attractiveness of the","page_number":179,"box":{"x":117,"y":273,"width":695,"height":12}},{"id":"88b0c1e5-6876-459c-bd08-5a5401bf26d0","block_type":"box","text":"properties, the ability of the owners to provide adequate management, maintenance and insurance, the","page_number":179,"box":{"x":117,"y":289,"width":770,"height":12}},{"id":"bf89cb65-b8ee-49a9-86f9-52d1f733d9f0","block_type":"box","text":"cost of complying with the Americans with Disabilities Act, increased competition from new properties,","page_number":179,"box":{"x":116,"y":304,"width":761,"height":12}},{"id":"38264876-7998-4925-9abf-f6e076aeffd1","block_type":"box","text":"the impact of present or future environmental legislation and compliance with environmental laws,","page_number":179,"box":{"x":116,"y":320,"width":729,"height":12}},{"id":"d5062edc-8645-4c54-8c51-f2ee4a22f382","block_type":"box","text":"failing to maintain their exemptions from registration under the Investment Company Act, changes in","page_number":179,"box":{"x":116,"y":335,"width":749,"height":12}},{"id":"0785fc96-2879-438e-a7e8-c00e5a806edd","block_type":"box","text":"real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal","page_number":179,"box":{"x":117,"y":351,"width":733,"height":12}},{"id":"370a37b2-3145-4ad7-8fcb-689a979625e6","block_type":"box","text":"policies, adverse changes in zoning laws and other factors beyond the control of the issuers of the","page_number":179,"box":{"x":117,"y":366,"width":733,"height":12}},{"id":"50eea236-5069-43e3-8f51-4456364c2d03","block_type":"box","text":"REITs. To the extent that assets underlying a REIT are concentrated geographically, by property type,","page_number":179,"box":{"x":117,"y":382,"width":762,"height":12}},{"id":"9cca4973-28ff-428f-bc54-2d0b410034f4","block_type":"box","text":"or in certain other respects, these risks may be heightened.","page_number":179,"box":{"x":116,"y":397,"width":446,"height":12}},{"id":"432b3a42-a94f-4f57-89a9-43a346348711","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or","page_number":179,"box":{"x":117,"y":428,"width":761,"height":12}},{"id":"6b4f1180-2514-4c41-810f-229c8d271c41","block_type":"box","text":"return of capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating","page_number":179,"box":{"x":117,"y":444,"width":760,"height":12}},{"id":"8b90b407-b014-4b01-9816-48976144b70f","block_type":"box","text":"companies, to the extent application of the Fund’s investment strategy results in the Fund investing in","page_number":179,"box":{"x":116,"y":459,"width":758,"height":12}},{"id":"ea204434-1c22-4747-a175-31b2c1641b5b","block_type":"box","text":"REIT shares, the percentage of the Fund’s dividend income received from REIT shares will likely","page_number":179,"box":{"x":117,"y":475,"width":722,"height":12}},{"id":"59c5cdc5-a9bc-48fb-88da-54b7929defdc","block_type":"box","text":"exceed the percentage of the Fund’s portfolio which is comprised of REIT shares. Ordinary REIT","page_number":179,"box":{"x":116,"y":490,"width":723,"height":12}},{"id":"24f6af80-a60e-4765-bde9-f48c0ae44237","block_type":"box","text":"dividends received by the Fund and distributed to the Fund’s shareholders will generally be taxable as","page_number":179,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"68939337-f1d7-4d24-af28-e30bfc298527","block_type":"box","text":"ordinary income and will not constitute “qualified dividend income.” However, a non-corporate taxpayer","page_number":179,"box":{"x":116,"y":521,"width":768,"height":12}},{"id":"64f8c7f5-9a9b-44ac-8d3c-3dcf2116022e","block_type":"box","text":"who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for ordinary","page_number":179,"box":{"x":116,"y":537,"width":757,"height":12}},{"id":"d2fec30a-d752-4731-8f46-3c8e0e20daad","block_type":"box","text":"REIT dividends, and a regulated investment company may report dividends as eligible for this","page_number":179,"box":{"x":117,"y":552,"width":698,"height":12}},{"id":"68aa915a-8f54-4c85-8c69-f4bb5c09fd6d","block_type":"box","text":"deduction to the extent the regulated investment company’s income is derived from ordinary REIT","page_number":179,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"2d66d49b-183f-4978-a4ed-fe72cc20827d","block_type":"box","text":"dividends (reduced by allocable regulated investment company expenses). A shareholder may treat","page_number":179,"box":{"x":116,"y":583,"width":745,"height":12}},{"id":"f450417f-fb74-436d-999e-843a13bead35","block_type":"box","text":"the dividends as such provided the regulated investment company and the shareholder satisfy","page_number":179,"box":{"x":116,"y":599,"width":704,"height":12}},{"id":"044dddfc-4d09-44c1-a6e0-da0335a914a6","block_type":"box","text":"applicable holding period requirements.","page_number":179,"box":{"x":116,"y":614,"width":298,"height":12}},{"id":"e4fe27c9-c751-4c72-a7fd-96a0fb4b49e8","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may","page_number":179,"box":{"x":117,"y":645,"width":728,"height":12}},{"id":"190a2642-8e86-417c-ae88-10f6e5c8ed37","block_type":"box","text":"cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the","page_number":179,"box":{"x":116,"y":661,"width":720,"height":12}},{"id":"4174bdd9-0e69-4a95-9585-a6ebf8632d0b","block_type":"box","text":"market price of the equity securities issued by a REIT. Rising interest rates also generally increase the","page_number":179,"box":{"x":117,"y":676,"width":759,"height":12}},{"id":"b5b435f1-47b2-4014-b61d-d106932f7f3b","block_type":"box","text":"costs of obtaining financing, which could cause the value of a Fund’s REIT investments to decline.","page_number":179,"box":{"x":116,"y":692,"width":728,"height":12}},{"id":"46a0d255-aa12-47ca-9343-2917a5fe8520","block_type":"box","text":"During periods when interest rates are declining, mortgages are often refinanced. Refinancing may","page_number":179,"box":{"x":117,"y":707,"width":733,"height":12}},{"id":"1919547a-1495-4d97-a4cb-4060734af675","block_type":"box","text":"reduce the yield on investments in mortgage REITs. In addition, since REITs depend on payment","page_number":179,"box":{"x":117,"y":723,"width":721,"height":12}},{"id":"ad3562dd-b96c-48d9-8034-b254116a9838","block_type":"box","text":"under their mortgage loans and leases to generate cash to make distributions to their shareholders,","page_number":179,"box":{"x":117,"y":738,"width":737,"height":12}},{"id":"3d8f1a94-cc21-4b65-a660-9a97a9810b89","block_type":"box","text":"investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":179,"box":{"x":117,"y":754,"width":706,"height":12}},{"id":"2204ebaa-5024-4d86-9156-271cec55ca1f","block_type":"box","text":"Investing in certain REITs, which often have small mark","page_number":179,"box":{"x":117,"y":785,"width":403,"height":12}},{"id":"c4915740-62ee-412d-b681-77f5fa839907","block_type":"box","text":"et capitalizations, may also involve the same risks","page_number":179,"box":{"x":521,"y":785,"width":361,"height":12}},{"id":"d217cea2-1fc0-4935-9ff2-bbe114fea951","block_type":"box","text":"as investing in other small capitalization compani","page_number":179,"box":{"x":116,"y":800,"width":354,"height":12}},{"id":"abed98dd-6c69-44c1-b611-0cfa0812b135","block_type":"box","text":"es. REITs may have limited financial resources and their","page_number":179,"box":{"x":472,"y":800,"width":410,"height":12}},{"id":"02e5cd28-379f-4d7e-85f1-b331a0a2088c","block_type":"box","text":"securities may trade less frequently and in limited volu","page_number":179,"box":{"x":116,"y":816,"width":393,"height":12}},{"id":"07a265e7-d8bd-4eb9-a591-18e0c869e806","block_type":"box","text":"me and may be subject to more abrupt or erratic","page_number":179,"box":{"x":511,"y":816,"width":350,"height":12}},{"id":"7faf8f44-a6fd-4abb-94f9-4d30da20516d","block_type":"box","text":"price movements than larger company securities. Histo","page_number":179,"box":{"x":117,"y":831,"width":399,"height":12}},{"id":"eec44852-dfe3-495d-bf57-2dc702e1bf5f","block_type":"box","text":"rically, small capitalization stocks, such as REITs,","page_number":179,"box":{"x":518,"y":831,"width":364,"height":12}},{"id":"d6ccacda-c7e1-49a6-a253-40a72abe7e9c","block_type":"box","text":"have been more volatile in price than the larger c","page_number":179,"box":{"x":117,"y":847,"width":354,"height":12}},{"id":"d741f14a-078b-41fe-8fbe-a7f629ade513","block_type":"box","text":"apitalization stocks such as those included in the S&P","page_number":179,"box":{"x":472,"y":847,"width":396,"height":12}},{"id":"d8373565-6d01-4717-9eb6-9dacc3c6daf3","block_type":"box","text":"500 Index. The management of a REIT may be subject to","page_number":179,"box":{"x":116,"y":862,"width":423,"height":12}},{"id":"4779a1e7-7e2b-4e2b-8537-e40174d345f4","block_type":"box","text":"conflicts of interest with respect to the","page_number":179,"box":{"x":540,"y":862,"width":278,"height":12}},{"id":"b044404d-2d24-4da3-bd02-8917b5ab692b","block_type":"box","text":"operation of the business of the REIT and may be involved","page_number":179,"box":{"x":116,"y":878,"width":432,"height":12}},{"id":"d3c67133-74c1-4a2a-9fa5-aee97e3e8e40","block_type":"box","text":"in real estate activities competitive with the","page_number":179,"box":{"x":549,"y":878,"width":314,"height":12}},{"id":"18273f3d-60c9-451e-ab67-1d2c7ec18ee4","block_type":"box","text":"II-85","page_number":179,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5c07d6ba-294e-48ba-8315-1d074d8dbff2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":179,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1c8b5394-ca1b-4589-a621-eb082bffcdd1","block_type":"box","text":"REIT. REITs may own properties through joint ventures","page_number":180,"box":{"x":117,"y":87,"width":407,"height":12}},{"id":"e14486b4-de13-407d-8e7a-d7cbe2e3581f","block_type":"box","text":"or in other circumstances in which the REIT may","page_number":180,"box":{"x":525,"y":87,"width":357,"height":12}},{"id":"cbba6e80-3879-4085-bfef-0f8343ada960","block_type":"box","text":"not have control over its investments. REITs","page_number":180,"box":{"x":117,"y":103,"width":320,"height":9}},{"id":"e853af5b-2828-48fe-942c-09ec5da2834f","block_type":"box","text":"may incur significant amounts of leverage.","page_number":180,"box":{"x":438,"y":102,"width":316,"height":13}},{"id":"55f25b49-d60d-43aa-bbed-cd850a10e581","block_type":"box","text":"Market Risks/Recent Market Events","page_number":180,"box":{"x":116,"y":134,"width":283,"height":9}},{"id":"85ccd7a1-943a-4cf4-b87a-fad46ed66c3f","block_type":"box","text":". Securities may decline in value due to factors affecting","page_number":180,"box":{"x":401,"y":134,"width":418,"height":12}},{"id":"5e996d05-4259-44ff-bdd0-983b529ec082","block_type":"box","text":"securities markets generally or particular industries represented in the markets. The value of a security","page_number":180,"box":{"x":116,"y":149,"width":767,"height":12}},{"id":"0309156e-2b3a-4013-ac0b-71f74791e027","block_type":"box","text":"may decline due to general market conditions, economic trends or events that are not specifically","page_number":180,"box":{"x":117,"y":165,"width":725,"height":12}},{"id":"727202fa-cddb-4399-a422-74553bb1ca5c","block_type":"box","text":"related to a company or to factors that affect a particular industry or industries, or factors that affect a","page_number":180,"box":{"x":117,"y":180,"width":754,"height":12}},{"id":"f2b508f9-9868-4df8-970f-dac6d6c3e2f8","block_type":"box","text":"particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of","page_number":180,"box":{"x":117,"y":196,"width":748,"height":12}},{"id":"c7ff8cd8-d0d6-4f27-bdde-b259bc2fdc5d","block_type":"box","text":"industries, sector or asset class. The success of a Fund’s activities could be affected by interest rates,","page_number":180,"box":{"x":117,"y":211,"width":761,"height":12}},{"id":"637a601c-aa58-4c89-a735-28b54accd472","block_type":"box","text":"availability of credit, inflation rates, economic uncertainty, changes in laws, trade barriers, economic","page_number":180,"box":{"x":116,"y":227,"width":744,"height":12}},{"id":"c6f89c2f-0aa9-406e-8aa9-72eba0142516","block_type":"box","text":"sanctions, currency exchange controls, and local, regional or global events such as war, acts of","page_number":180,"box":{"x":116,"y":242,"width":714,"height":12}},{"id":"d519e939-ca97-43ec-8649-432b8a1671b6","block_type":"box","text":"terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":180,"box":{"x":116,"y":258,"width":744,"height":11}},{"id":"ec923122-5b50-4c74-984b-877ab17c57d7","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments.","page_number":180,"box":{"x":117,"y":273,"width":730,"height":12}},{"id":"0653c3aa-31c6-4177-bb0f-43b5d90c4177","block_type":"box","text":"During a general economic downturn in the securities markets, multiple asset classes may be","page_number":180,"box":{"x":117,"y":289,"width":698,"height":12}},{"id":"2db80dab-972f-45ed-a43d-57fa1fe0380b","block_type":"box","text":"negatively affected. These factors may affect the level and volatility of securities prices and the liquidity","page_number":180,"box":{"x":117,"y":304,"width":768,"height":12}},{"id":"c2cd7896-189d-4ca4-88a1-2140e3f9dacb","block_type":"box","text":"of a Fund’s investments, which could impair the Fund’s profitability or result in losses. A Fund may","page_number":180,"box":{"x":116,"y":320,"width":734,"height":12}},{"id":"a6e1087d-97af-4e1c-8ed1-396033434d3a","block_type":"box","text":"maintain substantial trading positions that can be adversely affected by the level of volatility in the","page_number":180,"box":{"x":117,"y":335,"width":728,"height":12}},{"id":"c950d6c8-3d66-4426-a3bc-2576833278ce","block_type":"box","text":"financial markets; the larger the positions, the greater the potential for loss. Unpredictable or unstable","page_number":180,"box":{"x":116,"y":351,"width":758,"height":12}},{"id":"080d8556-2b20-43cc-8e2a-b3a3b81e1d97","block_type":"box","text":"market conditions may result in reduced opportunities to find suitable investments to deploy capital or","page_number":180,"box":{"x":117,"y":366,"width":756,"height":12}},{"id":"3a719055-da81-4ba4-a01c-643dfe7ae476","block_type":"box","text":"make it more difficult to exit and realize value","page_number":180,"box":{"x":117,"y":382,"width":339,"height":9}},{"id":"5ea51af4-dc1a-4826-9686-02c130ed9dd1","block_type":"box","text":"from a Fund’s existing investments. 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A rise in","page_number":180,"box":{"x":116,"y":552,"width":384,"height":12}},{"id":"ba1e0e4f-c5b7-4d47-9182-a42fada064fd","block_type":"box","text":"protectionist trade policies, and the possibility of","page_number":180,"box":{"x":501,"y":552,"width":357,"height":12}},{"id":"4c3f006d-5c6a-4318-abbc-cab47bc24f6a","block_type":"box","text":"changes to some international trade agreements, coul","page_number":180,"box":{"x":116,"y":568,"width":392,"height":12}},{"id":"6ac8bdc7-bf13-4aab-ac73-d5ef2d6de9ed","block_type":"box","text":"d affect the economies of many nations in ways","page_number":180,"box":{"x":509,"y":568,"width":350,"height":12}},{"id":"1ec96d48-69d4-4509-8e07-40a8c548d688","block_type":"box","text":"that cannot necessarily be foreseen at the present","page_number":180,"box":{"x":116,"y":583,"width":370,"height":12}},{"id":"1b8790fd-0727-4581-855f-5dd99fc586e4","block_type":"box","text":"time. 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As a result,","page_number":180,"box":{"x":517,"y":614,"width":323,"height":12}},{"id":"411f5a0c-4bf4-404d-a6fd-9e646c84bcba","block_type":"box","text":"whether or not a Fund invests in securities of issuers","page_number":180,"box":{"x":116,"y":630,"width":388,"height":9}},{"id":"39f055b6-bbe1-41ea-a131-f4b6cfefb1e4","block_type":"box","text":"located in or with significant exposure to countries","page_number":180,"box":{"x":504,"y":630,"width":367,"height":12}},{"id":"b227ef6c-ffd9-491e-a19c-8e7bed20409f","block_type":"box","text":"experiencing economic, political and/or financial di","page_number":180,"box":{"x":116,"y":645,"width":364,"height":12}},{"id":"4aa13715-7aed-4b90-80e8-d94ef481bd54","block_type":"box","text":"fficulties, the value and liquidity of the Fund’s","page_number":180,"box":{"x":481,"y":645,"width":330,"height":12}},{"id":"1653be12-8422-4d23-8777-eaea508c3961","block_type":"box","text":"investments may be negatively affected by such events.","page_number":180,"box":{"x":117,"y":661,"width":405,"height":12}},{"id":"a2a676ec-f03f-4e2d-95bd-c987e6fb306f","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments","page_number":180,"box":{"x":117,"y":692,"width":757,"height":12}},{"id":"445985d3-1b84-4bb0-8730-8bdc8e4be4ce","block_type":"box","text":"in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future","page_number":180,"box":{"x":117,"y":707,"width":745,"height":12}},{"id":"cb63ad58-c028-44c5-865e-c2fc7436bf24","block_type":"box","text":"legislation or regulation or other governmental actions could limit or preclude the Fund’s abilities to","page_number":180,"box":{"x":117,"y":723,"width":729,"height":12}},{"id":"f6d05756-5ede-476e-ba0c-32ba1d01e5d2","block_type":"box","text":"achieve its investment objectives or otherwise adversely impact an investment in the Fund. Recent","page_number":180,"box":{"x":116,"y":738,"width":733,"height":12}},{"id":"bfb4ce6a-e973-431a-a5b1-bbc57f03d5ca","block_type":"box","text":"policy initiatives undertaken by the U.S. government have the potential to impact international relations,","page_number":180,"box":{"x":117,"y":754,"width":764,"height":12}},{"id":"eeed7616-1887-469e-960d-127bf03615b3","block_type":"box","text":"trade agreements and the overall regulatory environment in ways that could create uncertainty and","page_number":180,"box":{"x":116,"y":769,"width":732,"height":12}},{"id":"f4c0ee30-9aa4-4c37-9fb1-d3d0a6956db3","block_type":"box","text":"instability in domestic and global markets, and could adversely affect the investment performance of","page_number":180,"box":{"x":117,"y":785,"width":742,"height":12}},{"id":"a329eb85-9139-4fbf-9d76-80d8940e6741","block_type":"box","text":"the Fund. In particular, actions taken by the U.S. government in respect of international trade relations","page_number":180,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"14a2c06a-ed28-4a65-9238-51a1cb52796b","block_type":"box","text":"could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":180,"box":{"x":116,"y":816,"width":734,"height":12}},{"id":"5708e8e2-2ba6-4620-b952-7c5d38a0393b","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events","page_number":180,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"21ae3436-7af8-4d19-9914-4385985900fd","block_type":"box","text":"within the United States, including a contentious domestic political environment, changes in political","page_number":180,"box":{"x":116,"y":847,"width":743,"height":12}},{"id":"6f899a13-b27f-4462-b6ba-962d8d047c07","block_type":"box","text":"party control of one or more branches of the U.S. Government, the U.S. Government’s inability at times","page_number":180,"box":{"x":117,"y":862,"width":770,"height":12}},{"id":"a963012f-d2bd-4db8-ae96-bc89a7042de8","block_type":"box","text":"to agree on a long-term budget and deficit reduction plan, the threat of a U.S. Government shutdown,","page_number":180,"box":{"x":116,"y":878,"width":757,"height":12}},{"id":"1c471bdc-ac9b-4a8c-9d75-939152d28549","block_type":"box","text":"II-86","page_number":180,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"8a821cdd-afa9-47c4-9547-63a31c9bbb74","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":180,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fa40a7ac-8646-428d-8098-fe95eade6544","block_type":"box","text":"and disagreements over, or threats not to increase, the U.S. Government’s borrowing limit (or “debt","page_number":181,"box":{"x":116,"y":87,"width":742,"height":12}},{"id":"da20fe35-4a11-4400-914c-0cbf00347a36","block_type":"box","text":"ceiling”), as well as political and diplomatic events abroad, may affect investor and consumer","page_number":181,"box":{"x":116,"y":102,"width":694,"height":13}},{"id":"404fe027-dc1b-4668-9710-ce5e05945be0","block_type":"box","text":"confidence and may adversely impact financial markets and the broader economy, perhaps suddenly","page_number":181,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"c2568510-fa82-47cc-8732-655acdee289b","block_type":"box","text":"and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or","page_number":181,"box":{"x":116,"y":134,"width":713,"height":12}},{"id":"aa91c68f-b5bb-4934-a04e-932710a81d5f","block_type":"box","text":"concerns about the U.S. Government’s credit quality in general, could have a substantial negative","page_number":181,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"f42aaf7a-4354-41d5-810c-96e42645b13d","block_type":"box","text":"effect on the U.S. and global economies. For example, concerns about the U.S. Government’s credit","page_number":181,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"e94ad81f-e041-4be0-b2e5-b5659e4ccee2","block_type":"box","text":"quality may cause increased volatility in the stock and bond markets, higher interest rates, reduced","page_number":181,"box":{"x":116,"y":180,"width":739,"height":12}},{"id":"b8689e60-4574-4abf-87c2-c5673f5db034","block_type":"box","text":"prices and liquidity of U.S. Treasury securities, and/or increased costs of various kinds of debt.","page_number":181,"box":{"x":117,"y":196,"width":706,"height":12}},{"id":"d72a2d4e-a7a8-4651-b09a-e3ba5bcd70ee","block_type":"box","text":"Moreover, although the U.S. Government has honored its credit obligations, there remains a possibility","page_number":181,"box":{"x":117,"y":211,"width":766,"height":12}},{"id":"c85aa648-2b8a-4512-9e38-14e43205638b","block_type":"box","text":"that the United States could default on its obligations. The consequences of such an unprecedented","page_number":181,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"14db5536-417a-47b2-8297-8c4c1a6a0d8e","block_type":"box","text":"event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":181,"box":{"x":116,"y":242,"width":716,"height":12}},{"id":"2f13120d-c8ce-446d-a4f7-16566ccc497f","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the","page_number":181,"box":{"x":116,"y":258,"width":723,"height":12}},{"id":"69f071ac-ceb2-41fa-a29a-d88cf7cde34d","block_type":"box","text":"Fund’s investments.","page_number":181,"box":{"x":117,"y":273,"width":153,"height":10}},{"id":"f7e47070-c7bf-4c57-9733-e34d3783edd7","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures,","page_number":181,"box":{"x":116,"y":300,"width":761,"height":12}},{"id":"4d0633e0-80c4-4cbc-bb97-8b93c9937aeb","block_type":"box","text":"declines in global financial markets, higher default rates, supply chain disruptions, and a substantial","page_number":181,"box":{"x":116,"y":316,"width":743,"height":12}},{"id":"bfda68b1-eaea-4b73-9f92-9d8d48190d48","block_type":"box","text":"economic downturn in economies throughout the world. The impact of this coronavirus, and other","page_number":181,"box":{"x":116,"y":331,"width":727,"height":12}},{"id":"20a076d0-75fc-480e-9bc0-737ef82c381d","block_type":"box","text":"epidemics and pandemics that may arise in the future, could affect the economies of many nations,","page_number":181,"box":{"x":116,"y":347,"width":741,"height":12}},{"id":"75415865-4c44-4df9-a64f-c92d92515f10","block_type":"box","text":"individual companies and the market in general in ways that cannot necessarily be foreseen at the","page_number":181,"box":{"x":117,"y":362,"width":733,"height":12}},{"id":"cb71b52a-f616-4367-9cb4-48f8afc76389","block_type":"box","text":"present time. These health crises may be short term or long term, and may exacerbate other pre","page_number":181,"box":{"x":117,"y":378,"width":721,"height":12}},{"id":"d4e3d61f-2452-4f9e-be4f-b2d565098e30","block_type":"box","text":"existing political, social and economic risks, disrupt normal market conditions and operations, and","page_number":181,"box":{"x":116,"y":393,"width":729,"height":12}},{"id":"5b154f44-48d6-4753-8381-28e04e1f5adc","block_type":"box","text":"negatively impact performance. In addition, the impact of infectious diseases in emerging developing or","page_number":181,"box":{"x":117,"y":409,"width":771,"height":12}},{"id":"ba8a1462-1cbd-44f9-a829-c374395e87e8","block_type":"box","text":"emerging market countries may be greater due to less established health care systems.","page_number":181,"box":{"x":116,"y":424,"width":657,"height":12}},{"id":"fc2e3765-c743-4ec4-931a-44d7d120b35c","block_type":"box","text":"Legal and Regulatory Risks","page_number":181,"box":{"x":116,"y":451,"width":205,"height":12}},{"id":"50bab5ea-63b2-4956-a0f5-5ac13423b19e","block_type":"box","text":". The Manager is part of a larger firm with multiple business lines active in","page_number":181,"box":{"x":323,"y":451,"width":550,"height":12}},{"id":"7509ccd4-340c-4575-941b-1406e3439114","block_type":"box","text":"multiple jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some","page_number":181,"box":{"x":117,"y":467,"width":753,"height":12}},{"id":"0856427e-66d6-408a-8b93-ea1b6ba8b6fd","block_type":"box","text":"of which are new and evolving. As a result, the Funds and the Manager and its affiliates are subject to","page_number":181,"box":{"x":116,"y":482,"width":761,"height":12}},{"id":"785cee3b-ae34-497a-9911-d60f13ccaa90","block_type":"box","text":"extensive and sophisticated legal, tax and regulatory risks, including changing laws and regulations,","page_number":181,"box":{"x":116,"y":498,"width":746,"height":12}},{"id":"8870c39c-5119-4e4c-8889-1cb299ca15af","block_type":"box","text":"developing interpretations of such laws and regulations, as well as existing laws, and increased","page_number":181,"box":{"x":116,"y":513,"width":712,"height":12}},{"id":"ccf3c398-ce12-4f36-88ec-cfaf1692ca22","block_type":"box","text":"scrutiny by regulators and law enforcement authorities. Unexpected economic, political, regulatory and","page_number":181,"box":{"x":116,"y":529,"width":766,"height":12}},{"id":"f323958e-5f83-4d8b-8ff9-3c0a9c9da5ad","block_type":"box","text":"diplomatic events within the United States and abroad can trigger new and complex regulations that","page_number":181,"box":{"x":116,"y":544,"width":745,"height":12}},{"id":"47180859-38a1-4d42-87f4-6e35a97218c3","block_type":"box","text":"the Manager and/or the Funds may need to comply with. The implementation of changes to comply","page_number":181,"box":{"x":116,"y":560,"width":742,"height":12}},{"id":"f9d737c3-0725-4813-8463-3a047a2d6924","block_type":"box","text":"with current and/or new regulations applicable to the Funds and/or the Manager could have a material","page_number":181,"box":{"x":116,"y":576,"width":761,"height":11}},{"id":"3234a19c-fdda-4cbd-a3c6-1784eda914aa","block_type":"box","text":"adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit","page_number":181,"box":{"x":116,"y":591,"width":712,"height":12}},{"id":"e0717938-0e6a-40e9-a56d-8ce51e7aeae4","block_type":"box","text":"margins, reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":181,"box":{"x":117,"y":606,"width":762,"height":12}},{"id":"ce7a5eb6-c37e-4c43-ae1f-7730fc41644a","block_type":"box","text":"Tariff and Trade Policy Risks","page_number":181,"box":{"x":118,"y":634,"width":213,"height":12}},{"id":"f5c9743f-78e6-469d-bffa-9b3e96c7a924","block_type":"box","text":". Some countries, including the U.S., have adopted more protectionist","page_number":181,"box":{"x":332,"y":634,"width":521,"height":12}},{"id":"2803c510-491c-4250-a729-5541bdf2beca","block_type":"box","text":"trade policies. The U.S. government recently altered its approach to international trade policy, resulting","page_number":181,"box":{"x":116,"y":649,"width":768,"height":12}},{"id":"4ecc4474-dab4-47aa-80ad-40bf21dc02c4","block_type":"box","text":"in significant impacts on international trade relations, certain tax and immigration policies, and other","page_number":181,"box":{"x":117,"y":665,"width":738,"height":12}},{"id":"3d163af8-9be7-4de8-9f0c-7d1085d47abb","block_type":"box","text":"aspects of the national and international political and financial landscape. The rise in protectionist trade","page_number":181,"box":{"x":116,"y":680,"width":764,"height":12}},{"id":"e9343b8a-3d67-4108-9d7d-ff7d01ea44ca","block_type":"box","text":"policies, slowing economic growth, changes to some major international trade agreements, risks","page_number":181,"box":{"x":117,"y":696,"width":713,"height":12}},{"id":"f039b2bd-5377-4a6d-996c-32b258e6f625","block_type":"box","text":"associated with trade agreements between the U.S. and the European Union, and the risks associated","page_number":181,"box":{"x":116,"y":711,"width":761,"height":12}},{"id":"f444fded-84c7-4873-8a24-3eaf03612bdb","block_type":"box","text":"with trade negotiations between the U.S. and China, could affect the economies of many nations in","page_number":181,"box":{"x":116,"y":727,"width":733,"height":12}},{"id":"6b377248-dc27-4587-888b-56c6baa2d625","block_type":"box","text":"ways that cannot necessarily be foreseen at the present time.","page_number":181,"box":{"x":116,"y":742,"width":456,"height":12}},{"id":"3fdd50da-459c-4cbb-9396-75b9ff0d0a27","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together","page_number":181,"box":{"x":117,"y":769,"width":754,"height":12}},{"id":"a671ff8c-8352-47ab-bf83-94e4cd0207b8","block_type":"box","text":"with any future downturns in the global economy resulting therefrom, could adversely affect the","page_number":181,"box":{"x":116,"y":785,"width":705,"height":12}},{"id":"fa655719-3ebb-4cd7-8253-6b345d3e024a","block_type":"box","text":"financial performance of a Fund and its investments. Trade policy may be an ongoing source of","page_number":181,"box":{"x":116,"y":800,"width":709,"height":12}},{"id":"83ac02dc-8038-4629-b4cc-92d462501005","block_type":"box","text":"instability, potentially resulting in significant currency fluctuations and/or having other adverse effects","page_number":181,"box":{"x":117,"y":816,"width":745,"height":12}},{"id":"4293426e-5541-4c5a-aaa4-56fa7e6d2cb0","block_type":"box","text":"on international markets, international trade agreements, and/or other existing cross-border","page_number":181,"box":{"x":116,"y":831,"width":683,"height":12}},{"id":"e15db4ab-c32e-4d15-8528-498a139a7856","block_type":"box","text":"cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or otherwise). To the extent","page_number":181,"box":{"x":116,"y":847,"width":771,"height":12}},{"id":"7fbee68c-c465-47c8-bb4c-1be8ce6d737a","block_type":"box","text":"trade disputes escalate globally, there could be additional significant impacts on the sectors or","page_number":181,"box":{"x":116,"y":862,"width":704,"height":12}},{"id":"050b237d-727b-4a1b-9d85-78e9f26bba88","block_type":"box","text":"industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":181,"box":{"x":117,"y":878,"width":709,"height":12}},{"id":"ad5ce94a-dd43-4ab2-a0ea-c6b7492778ec","block_type":"box","text":"II-87","page_number":181,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0e1e4de7-beed-4ed4-af58-81de03d0fafe","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":181,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"dcd6d24b-13bb-4c77-9f39-e0682a0f8896","block_type":"box","text":"Geographic Risks","page_number":182,"box":{"x":117,"y":87,"width":131,"height":12}},{"id":"08468375-8650-47fd-83bd-1f7c87c83a68","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise","page_number":182,"box":{"x":250,"y":87,"width":621,"height":12}},{"id":"be88c686-c535-4b9b-ad49-a24306e9a719","block_type":"box","text":"connected to, parts of the world affected by natural disasters such as severe heat, earthquakes,","page_number":182,"box":{"x":116,"y":102,"width":717,"height":13}},{"id":"d9c05127-d155-417b-a5c2-183f16bf2dbe","block_type":"box","text":"tornadoes, volcanic eruptions, wildfires, droughts, floods, hurricanes or tsunamis, and are economically","page_number":182,"box":{"x":116,"y":118,"width":771,"height":12}},{"id":"13e5a5dd-5ab9-46e7-87ce-ab1f92e0b5a0","block_type":"box","text":"sensitive to environmental events. In addition, issuers may be impacted by security concerns with","page_number":182,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"4e242f74-4328-4d8d-90e6-eea767d9cf2d","block_type":"box","text":"respect to a country or region, such as war and other types of conflict, terrorism, strained international","page_number":182,"box":{"x":117,"y":149,"width":760,"height":12}},{"id":"da238278-3fac-4c33-8ac5-b352b743b4a5","block_type":"box","text":"relations and territorial disputes. Any of these events may adversely affect the issuers, markets and","page_number":182,"box":{"x":117,"y":165,"width":742,"height":12}},{"id":"f2f4d992-b363-4cd2-b422-bfedb8245a75","block_type":"box","text":"economies to which a Fund is exposed, which may adversely affect the value of the Fund.","page_number":182,"box":{"x":116,"y":180,"width":673,"height":12}},{"id":"99c4f309-defe-4647-b092-d2a4e0a8c9a6","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":182,"box":{"x":116,"y":211,"width":275,"height":12}},{"id":"15f2a8a4-af94-424d-b503-7b9a8ae511b8","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically","page_number":182,"box":{"x":393,"y":211,"width":469,"height":12}},{"id":"069786d4-97e1-4da9-86e5-2b8c14f55378","block_type":"box","text":"been used extensively in the U.S. and globally as a “benchmark” or “reference rate” for various","page_number":182,"box":{"x":117,"y":227,"width":707,"height":12}},{"id":"21856bfc-8f41-44a6-9e8a-429578ebf799","block_type":"box","text":"commercial and financial contracts, including corporate and municipal bonds, bank loans, asset","page_number":182,"box":{"x":116,"y":242,"width":714,"height":12}},{"id":"4d35086c-0094-4127-9ff0-16a75ae772c1","block_type":"box","text":"backed and mortgage-related securities, interest rate swaps and other derivatives. Instruments in","page_number":182,"box":{"x":117,"y":258,"width":726,"height":12}},{"id":"391f3fcf-ec60-457b-bbb4-65d5e9b9d6c7","block_type":"box","text":"which a Fund may have historically paid interest at floating rates based on LIBOR or may have been","page_number":182,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"5bfd8cc3-3c3d-4644-86c0-3d9ccdcf1709","block_type":"box","text":"subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a","page_number":182,"box":{"x":116,"y":289,"width":742,"height":12}},{"id":"36d83f06-e0b5-4b0f-a21c-e6bb3d469abf","block_type":"box","text":"Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":182,"box":{"x":117,"y":304,"width":709,"height":12}},{"id":"95ee7155-e65d-49b6-a734-5779e814e06f","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market participants as a","page_number":182,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"d1bde847-0eb0-453e-afd4-d49ddc67e89b","block_type":"box","text":"result of benchmark reforms, LIBOR was last published on a representative basis at the end of June","page_number":182,"box":{"x":117,"y":335,"width":748,"height":12}},{"id":"dd3512b7-b92f-424e-93b8-1b7578dba0db","block_type":"box","text":"2023. Alternative reference rates to LIBOR have been established in most major currencies and","page_number":182,"box":{"x":116,"y":351,"width":717,"height":12}},{"id":"f77ab6cf-812e-46bf-952d-97cc2d69f487","block_type":"box","text":"markets in these alternative rates are continuing to develop (","page_number":182,"box":{"x":117,"y":366,"width":449,"height":12}},{"id":"952e24b8-b5e8-4646-a5fa-ed4110ea43cd","block_type":"box","text":"e.g.","page_number":182,"box":{"x":568,"y":369,"width":25,"height":9}},{"id":"068dfbb4-f350-4479-9218-20ecde1ca7cf","block_type":"box","text":", the Secured Overnight Financing","page_number":182,"box":{"x":596,"y":366,"width":259,"height":12}},{"id":"d6947ded-f6de-41ac-bb5a-97f3a87ec7ac","block_type":"box","text":"Rate (“SOFR”) for USD-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual","page_number":182,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"fa9c70e0-c432-40e8-8881-35704d2947e2","block_type":"box","text":"risks associated with the transition may remain that may impact markets or particular investments and,","page_number":182,"box":{"x":117,"y":397,"width":765,"height":12}},{"id":"4cdb3726-93ec-4826-bfbb-9b743fe763ad","block_type":"box","text":"as such, the full impact of the transition on the Funds or the financial instruments in which the Funds","page_number":182,"box":{"x":116,"y":413,"width":749,"height":12}},{"id":"dc76b507-27ec-496c-aae4-80b7035e4715","block_type":"box","text":"invest cannot yet be fully determined.","page_number":182,"box":{"x":117,"y":428,"width":281,"height":12}},{"id":"997a190c-545e-466b-ac34-a72edd292f92","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of","page_number":182,"box":{"x":116,"y":459,"width":400,"height":10}},{"id":"5b5d0a2f-f528-4746-b7a9-d2c30fabb3ea","block_type":"box","text":"f borrowing funds overnight in transactions that are","page_number":182,"box":{"x":515,"y":459,"width":370,"height":12}},{"id":"f56df693-43ed-4660-a88d-3f78aae7ff16","block_type":"box","text":"collateralized by U.S. Treasury securities . SOFR","page_number":182,"box":{"x":116,"y":475,"width":357,"height":12}},{"id":"2dd5da93-4147-4cbe-8bb5-2b8d790fc5fc","block_type":"box","text":"R is calculated based on transaction-level repo data","page_number":182,"box":{"x":473,"y":475,"width":370,"height":12}},{"id":"3aa5a0c4-fea8-4a84-84a5-1e164a136864","block_type":"box","text":"collected from various sources. For each trading day,","page_number":182,"box":{"x":116,"y":490,"width":391,"height":12}},{"id":"68fa1416-48ab-4f66-9a5e-bb4c59335a24","block_type":"box","text":"SOFR is calculated as a volume-weighted median","page_number":182,"box":{"x":508,"y":490,"width":368,"height":12}},{"id":"0981e0bf-ec63-4428-af19-b8fe98983317","block_type":"box","text":"rate derived from such data. Because SOFR is a financing rate based on overnight secured funding","page_number":182,"box":{"x":117,"y":506,"width":728,"height":12}},{"id":"9a11cbff-e428-43b4-89cc-8d4df1ca62e9","block_type":"box","text":"transactions, it differs fundamentally from LIBOR.","page_number":182,"box":{"x":116,"y":521,"width":357,"height":12}},{"id":"b9d652c1-ddef-4e1e-a463-4fc9acf57446","block_type":"box","text":"LIBOR is intended to be an unsecured rate that","page_number":182,"box":{"x":474,"y":521,"width":354,"height":10}},{"id":"7f5b2aea-9333-425f-961a-12a3015b57fa","block_type":"box","text":"represents interbank funding costs for different short-term","page_number":182,"box":{"x":117,"y":537,"width":422,"height":12}},{"id":"17cec498-94bb-4c50-aaca-4886412c4d85","block_type":"box","text":"maturities or tenors. It is a forward-looking rate","page_number":182,"box":{"x":540,"y":537,"width":343,"height":12}},{"id":"79a02c89-0206-44b5-8866-ae8d957d8bdf","block_type":"box","text":"reflecting expectations regarding interest rates for the applicable tenor. Thus, LIBOR is intended to be","page_number":182,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"25dff13f-0184-48db-9280-ec53c81bc8cb","block_type":"box","text":"sensitive, in certain respects, to bank credit risk and to","page_number":182,"box":{"x":116,"y":568,"width":394,"height":12}},{"id":"4fda7c27-f0b9-4807-a05d-657f787094d6","block_type":"box","text":"term interest rate risk.","page_number":182,"box":{"x":510,"y":568,"width":169,"height":9}},{"id":"a9e774a2-686c-4aaf-9854-357688ca7bd7","block_type":"box","text":"In contrast, SOFR is a","page_number":182,"box":{"x":680,"y":568,"width":165,"height":11}},{"id":"9a456358-baa2-409d-9bf9-f88f9dae5e4e","block_type":"box","text":"secured overnight rate reflecting the credit of U.S. Tr","page_number":182,"box":{"x":116,"y":583,"width":382,"height":12}},{"id":"797bf40b-1d25-4b04-a775-8ba80e7c511f","block_type":"box","text":"easury securities as collateral. Thus, it is largely","page_number":182,"box":{"x":498,"y":583,"width":352,"height":12}},{"id":"57541443-8a0e-4154-a281-a42dbf224d17","block_type":"box","text":"insensitive to credit-risk considerations and to short-te","page_number":182,"box":{"x":117,"y":599,"width":390,"height":9}},{"id":"fcb0ebee-5441-4289-8661-c668153757e9","block_type":"box","text":"rm interest rate risks. SOFR is a transaction-based","page_number":182,"box":{"x":509,"y":599,"width":373,"height":9}},{"id":"53917c44-9e05-49bd-b6d9-194d5c75dfa9","block_type":"box","text":"rate, and it has been more volatile than other benchmark","page_number":182,"box":{"x":117,"y":614,"width":416,"height":11}},{"id":"ae44adb6-a522-45a9-8401-a60a97b9c341","block_type":"box","text":"or market rates, such as three-month LIBOR,","page_number":182,"box":{"x":534,"y":614,"width":333,"height":11}},{"id":"e6533165-e9d0-4b21-bc82-ec8a34e90136","block_type":"box","text":"during certain periods. For these reasons, among other","page_number":182,"box":{"x":116,"y":630,"width":402,"height":12}},{"id":"7df29923-62a2-41f8-b7da-12d709357b32","block_type":"box","text":"s, there is no assurance that SOFR, or rates","page_number":182,"box":{"x":518,"y":630,"width":326,"height":11}},{"id":"e09741fc-f231-4e62-b237-5e93f66725bf","block_type":"box","text":"derived from SOFR, will perform in the same or simila","page_number":182,"box":{"x":116,"y":645,"width":390,"height":12}},{"id":"002f9212-91d9-4cf4-93f2-fe00cf7dcc6b","block_type":"box","text":"r way as LIBOR would have performed at any time,","page_number":182,"box":{"x":507,"y":645,"width":377,"height":12}},{"id":"9bbf50de-3694-403a-a715-e08202c97840","block_type":"box","text":"and there is no assurance that SOFR-based rates will","page_number":182,"box":{"x":116,"y":661,"width":389,"height":9}},{"id":"0fd82eaa-95e7-42ad-b099-3b55c800616a","block_type":"box","text":"be a suitable substitute for LIBOR. SOFR has a","page_number":182,"box":{"x":512,"y":661,"width":345,"height":9}},{"id":"3b6b2e52-9d7c-4597-b0bf-b0f696eae974","block_type":"box","text":"relatively limited history, having been first published","page_number":182,"box":{"x":117,"y":676,"width":372,"height":12}},{"id":"e9bd1613-6465-470f-a711-66f1d8201c21","block_type":"box","text":"in April 2018. The future performance of SOFR, and","page_number":182,"box":{"x":495,"y":676,"width":377,"height":12}},{"id":"dba98479-7a16-4eb5-a6ed-0a386ee6bb12","block_type":"box","text":"SOFR-based reference rates, cannot be predicted bas","page_number":182,"box":{"x":116,"y":692,"width":396,"height":12}},{"id":"805a8551-f74a-4958-9260-bd8bfa2ef78f","block_type":"box","text":"ed on SOFR’s history or otherwise. Levels of","page_number":182,"box":{"x":513,"y":692,"width":326,"height":12}},{"id":"f2339cb1-505b-4a32-b9a9-19cd8e8da5e8","block_type":"box","text":"SOFR in the future may bear little or no relation to hi","page_number":182,"box":{"x":116,"y":707,"width":379,"height":12}},{"id":"40c4d8d2-c64a-4092-9e61-c8396b5fa614","block_type":"box","text":"storical levels of SOFR,","page_number":182,"box":{"x":496,"y":707,"width":170,"height":11}},{"id":"4e1151b5-3285-4e9c-9178-2fd80ba579b7","block_type":"box","text":"LIBOR or other rates. There","page_number":182,"box":{"x":673,"y":707,"width":203,"height":10}},{"id":"a2412736-eecc-460f-b53d-29d5e027fb27","block_type":"box","text":"can also be no assurance that SOFR will not be discont","page_number":182,"box":{"x":116,"y":723,"width":404,"height":9}},{"id":"49ec5558-7b4c-4aa7-804d-2d481ea13bd2","block_type":"box","text":"inued or fundamentally alter","page_number":182,"box":{"x":521,"y":723,"width":202,"height":12}},{"id":"a7fd13f4-ef7a-4ff1-9b14-4ee3a138c8ee","block_type":"box","text":"ed in a manner that is","page_number":182,"box":{"x":724,"y":723,"width":157,"height":9}},{"id":"70d1df8b-f853-4e0f-bf5f-0a1c4a6825b1","block_type":"box","text":"materially adverse to the interests of the Fund.","page_number":182,"box":{"x":117,"y":738,"width":336,"height":12}},{"id":"c8ba4207-87cf-48a0-a839-e26fe6f299b8","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have","page_number":182,"box":{"x":117,"y":769,"width":763,"height":12}},{"id":"40ade3b0-3433-4fe3-9e85-a1deda22da9c","block_type":"box","text":"been the subject of ongoing national and international regulatory reform, including under the European","page_number":182,"box":{"x":117,"y":785,"width":759,"height":12}},{"id":"bb8eb1a4-a584-4361-90ea-2c7abda4fc02","block_type":"box","text":"Union (“EU”) regulation on indices used as benchmarks in financial instruments and financial contracts","page_number":182,"box":{"x":117,"y":800,"width":759,"height":12}},{"id":"2d3e23ce-74ff-456c-9b5d-26ffc6ea5447","block_type":"box","text":"(known as the “Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United","page_number":182,"box":{"x":117,"y":816,"width":748,"height":12}},{"id":"fcfafb01-534f-44c7-915e-1d76d7e1cd74","block_type":"box","text":"Kingdom (“UK”) law by virtue of the EU (Withdrawal) Act 2018 (as amended), subject to amendments","page_number":182,"box":{"x":117,"y":831,"width":756,"height":12}},{"id":"682d124b-0b9f-480e-bb14-5b0e3a31ddc6","block_type":"box","text":"made by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (SI","page_number":182,"box":{"x":117,"y":847,"width":733,"height":12}},{"id":"e0181391-a31b-4b22-b297-307eaa0ead43","block_type":"box","text":"2019/657) and other statutory instruments. Following the implementation of these reforms, the manner","page_number":182,"box":{"x":116,"y":862,"width":765,"height":12}},{"id":"505ad368-5544-4114-8ed7-e4c5ae0d26bb","block_type":"box","text":"of administration of benchmarks has changed and may further change in the future, with the result that","page_number":182,"box":{"x":116,"y":878,"width":766,"height":12}},{"id":"232755a5-15cf-4fc5-ae64-9e52122c9f1d","block_type":"box","text":"II-88","page_number":182,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2aa5770b-e318-4051-a805-48f50c5a43d4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":182,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8b6f3e63-aa07-4d84-a759-9dd92b05be92","block_type":"box","text":"relevant benchmarks may perform differently than in the past, the use of benchmarks that are not","page_number":183,"box":{"x":117,"y":87,"width":726,"height":12}},{"id":"d106ed6a-56e3-4dd8-a63c-61b59f5028e8","block_type":"box","text":"compliant with the new standards by certain supervised entities may be restricted, and certain","page_number":183,"box":{"x":116,"y":103,"width":702,"height":12}},{"id":"e778f17c-2189-45e8-8995-22cd68de4f35","block_type":"box","text":"benchmarks may be eliminated entirely. Such changes could cause increased market volatility and","page_number":183,"box":{"x":117,"y":118,"width":737,"height":12}},{"id":"8dfc196c-76c8-4edc-84f6-f8adbf644447","block_type":"box","text":"disruptions in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally,","page_number":183,"box":{"x":116,"y":134,"width":749,"height":12}},{"id":"e565740c-aea5-4a96-8894-94c1f9fedc15","block_type":"box","text":"there could be other consequences which cannot be predicted.","page_number":183,"box":{"x":116,"y":149,"width":472,"height":12}},{"id":"002c5474-5734-4aac-848a-de74eb72fb6a","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":183,"box":{"x":116,"y":179,"width":479,"height":12}},{"id":"44c09656-2634-4f5d-a3a4-9f6b3cbc38a6","block_type":"box","text":"Under repurchase agreements and","page_number":183,"box":{"x":597,"y":180,"width":264,"height":11}},{"id":"59412104-16d3-47c3-a315-845850d32b8b","block_type":"box","text":"purchase and sale contracts, the other party agrees, upon entering into the contract with a Fund, to","page_number":183,"box":{"x":117,"y":194,"width":740,"height":12}},{"id":"2c53b897-3bce-43ba-8430-ae88ef9ef38f","block_type":"box","text":"repurchase a security sold to the Fund at a mutually agreed-upon time and price in a specified","page_number":183,"box":{"x":117,"y":209,"width":703,"height":12}},{"id":"6c1a29d3-3579-4cba-9665-619a60909739","block_type":"box","text":"currency, thereby determining the yield during the term of the agreement.","page_number":183,"box":{"x":116,"y":224,"width":549,"height":12}},{"id":"268c31f4-f921-42db-8fa3-12459671addb","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements","page_number":183,"box":{"x":116,"y":254,"width":751,"height":12}},{"id":"e48156e2-ddfa-4f09-893c-c91bad5da0a1","block_type":"box","text":"stipulate that securities are owned by the Fund and the purchaser receives any interest on the security","page_number":183,"box":{"x":116,"y":269,"width":766,"height":12}},{"id":"c0ade610-9f77-43ca-89fe-0d574a4008cb","block_type":"box","text":"paid during the period. In the case of repurchase agreements, the prices at which the trades are","page_number":183,"box":{"x":117,"y":284,"width":717,"height":12}},{"id":"add899c3-296b-4ad0-9740-427da2998999","block_type":"box","text":"conducted do not reflect accrued interest on the underlying obligation; whereas, in the case of","page_number":183,"box":{"x":116,"y":299,"width":701,"height":12}},{"id":"66c24aa9-a89e-48e5-bb19-08cf2d9b1d75","block_type":"box","text":"purchase and sale contracts, the prices take into account accrued interest. A Fund may enter into","page_number":183,"box":{"x":117,"y":314,"width":728,"height":12}},{"id":"8cfa169a-20f2-418f-a1fe-254d557d51df","block_type":"box","text":"“tri-party” repurchase agreements. In “tri-party” repurchase agreements, an unaffiliated third-party","page_number":183,"box":{"x":116,"y":329,"width":729,"height":12}},{"id":"26c53c72-6de6-4eea-aa0b-e20cc18edd7c","block_type":"box","text":"custodian maintains accounts to hold collateral for the Fund and its counterparties and, therefore, the","page_number":183,"box":{"x":116,"y":343,"width":756,"height":12}},{"id":"a4c17f73-1b64-4f80-93f0-e233754109af","block_type":"box","text":"Fund may be subject to the credit risk of those custodians.","page_number":183,"box":{"x":117,"y":358,"width":438,"height":12}},{"id":"a4ac3e56-32ca-4316-a46c-9e104f95ecdf","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate","page_number":183,"box":{"x":116,"y":389,"width":758,"height":12}},{"id":"4024c9e3-c45d-420e-9ab8-e34b0a08926d","block_type":"box","text":"of return insulated from market fluctuations during the term of the agreement, although such return","page_number":183,"box":{"x":116,"y":405,"width":737,"height":12}},{"id":"c7a745a6-70d8-495b-8f4e-e2b043b8061b","block_type":"box","text":"may be affected by currency fluctuations. However, in the event of a default under a repurchase","page_number":183,"box":{"x":117,"y":420,"width":716,"height":12}},{"id":"6b90903c-616c-4ba5-90f6-45f5534fd8b5","block_type":"box","text":"agreement or under a purchase and sale contract, instead of the contractual fixed rate, the rate of","page_number":183,"box":{"x":116,"y":436,"width":730,"height":12}},{"id":"14e69b18-5427-40ce-a6ec-4ba419113e41","block_type":"box","text":"return to the Fund would be dependent upon intervening fluctuations of the market values of the","page_number":183,"box":{"x":117,"y":451,"width":716,"height":12}},{"id":"f81ce233-284d-4148-8c3f-c0fb6c513cb7","block_type":"box","text":"securities underlying the contract and the accrued interest on those securities. In such event, the Fund","page_number":183,"box":{"x":116,"y":467,"width":766,"height":12}},{"id":"89e697de-fef3-4487-a444-0ab7afdb9981","block_type":"box","text":"would have rights against the seller for breach of contract with respect to any losses arising from","page_number":183,"box":{"x":116,"y":482,"width":721,"height":12}},{"id":"cc7346e4-5a7a-47dc-94b0-f59341bf73dd","block_type":"box","text":"market fluctuations following the default.","page_number":183,"box":{"x":117,"y":498,"width":303,"height":12}},{"id":"95e7845d-b51b-4ce0-ad27-1fabec62678b","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may","page_number":183,"box":{"x":117,"y":529,"width":755,"height":12}},{"id":"09da6420-091d-49ae-a495-9e7913b096e6","block_type":"box","text":"have longer terms, and may be construed to be collateralized loans by the purchaser to the seller","page_number":183,"box":{"x":117,"y":545,"width":726,"height":11}},{"id":"496fd0fe-586f-48ae-8cc1-5ac1517a0d57","block_type":"box","text":"secured by the securities transferred to the purchaser. In the case of a repurchase agreement, as a","page_number":183,"box":{"x":116,"y":560,"width":743,"height":12}},{"id":"8dea5d2e-1dd5-4f1f-8fda-f633363244be","block_type":"box","text":"purchaser, a Fund’s Manager or sub-adviser will monitor the creditworthiness of the seller, and a Fund","page_number":183,"box":{"x":117,"y":575,"width":764,"height":12}},{"id":"2cc85aa3-59fd-4355-bec2-2e463dafeb8d","block_type":"box","text":"will require the seller to provide additional collateral if the market value of the securities falls below the","page_number":183,"box":{"x":116,"y":591,"width":761,"height":12}},{"id":"ea7ebb78-ba4c-4f07-a4b6-2a63ec2c1b09","block_type":"box","text":"repurchase price at any time during the term of the repurchase agreement. The Fund does not have","page_number":183,"box":{"x":117,"y":606,"width":747,"height":12}},{"id":"5ea56f1e-7550-4379-b60a-b78dc7bff34f","block_type":"box","text":"this right to seek additional collateral as a purchaser in the case of purchase and sale contracts. The","page_number":183,"box":{"x":116,"y":622,"width":750,"height":12}},{"id":"14993e53-dfb8-4b03-9227-f72f8138a3bb","block_type":"box","text":"Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities. Securities subject","page_number":183,"box":{"x":117,"y":637,"width":759,"height":12}},{"id":"5e3bd9d5-a57b-4bb3-a59a-f9274be60864","block_type":"box","text":"to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":183,"box":{"x":116,"y":653,"width":712,"height":12}},{"id":"bae107e0-6f28-478e-bec5-3b1c48dcb292","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury","page_number":183,"box":{"x":116,"y":668,"width":725,"height":12}},{"id":"dd0ee677-390d-41ad-8d3f-4149b4b37a59","block_type":"box","text":"book-entry system or by another authorized securities depository.","page_number":183,"box":{"x":117,"y":684,"width":485,"height":12}},{"id":"ded2fd53-1766-4b6b-9dd1-888a60f1c37f","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized","page_number":183,"box":{"x":117,"y":715,"width":729,"height":12}},{"id":"22f48244-0d97-43a1-838a-3937ba9a7160","block_type":"box","text":"loan, the underlying securities are not owned by the Fund but only constitute collateral for the seller’s","page_number":183,"box":{"x":117,"y":730,"width":748,"height":13}},{"id":"4dd831ea-17e7-4cb3-a50f-6e7abcf3e557","block_type":"box","text":"obligation to pay the repurchase price. Therefore, the Fund may suffer time delays and incur costs or","page_number":183,"box":{"x":116,"y":746,"width":750,"height":12}},{"id":"f13c7585-3493-4773-b9fa-ea92f8e65b80","block_type":"box","text":"possible losses in connection with disposition of the collateral. If the seller becomes insolvent and","page_number":183,"box":{"x":117,"y":761,"width":721,"height":12}},{"id":"4ddb4325-fce0-432a-b808-bc0fb14b70fc","block_type":"box","text":"subject to liquidation or reorganization under applicable bankruptcy or other laws, a Fund’s ability to","page_number":183,"box":{"x":116,"y":777,"width":739,"height":12}},{"id":"545b9628-08e8-4738-bff1-9bfae7566429","block_type":"box","text":"dispose of the underlying securities may be restricted. Finally, it is possible that a Fund may not be","page_number":183,"box":{"x":116,"y":792,"width":733,"height":13}},{"id":"e4070ebe-e0a8-4f1f-bd6a-a5a6fcc5f83a","block_type":"box","text":"able to substantiate its interest in the underlying securities. To minimize this risk, the securities","page_number":183,"box":{"x":116,"y":808,"width":701,"height":12}},{"id":"9d538a2a-ad9c-4b12-8251-ac07a3e7e566","block_type":"box","text":"underlying the repurchase agreement will be held by the applicable custodian at all times in an amount","page_number":183,"box":{"x":117,"y":824,"width":761,"height":12}},{"id":"c2fb8a23-47d3-418f-ae94-3d1b37052246","block_type":"box","text":"at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":183,"box":{"x":116,"y":839,"width":744,"height":12}},{"id":"5c57bd9f-6d7e-44d5-bd0e-debd06cb5686","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities","page_number":183,"box":{"x":116,"y":854,"width":748,"height":13}},{"id":"a56a180e-1241-4151-a3d3-0d3d2dd1633c","block_type":"box","text":"are less than the repurchase price.","page_number":183,"box":{"x":116,"y":870,"width":264,"height":12}},{"id":"9fa99c39-0623-4f16-a447-720d112d60f2","block_type":"box","text":"II-89","page_number":183,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"a70950cb-0268-4bf2-ab09-03def7e40ddf","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":183,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b0441252-9657-42c8-852a-09eb89c598b8","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may","page_number":184,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"3f62aae5-5a05-46a9-8d23-15dd7518bbd1","block_type":"box","text":"include cash items and obligations issued by the U.S. Government or its agencies or instrumentalities.","page_number":184,"box":{"x":117,"y":102,"width":762,"height":13}},{"id":"20c11c34-059b-4f3b-9ceb-0c8c5cda6178","block_type":"box","text":"For certain Funds, however, collateral may include instruments other than cash items and obligations","page_number":184,"box":{"x":117,"y":118,"width":755,"height":12}},{"id":"28c1c9d1-a26f-47dd-8bd7-059a5365e263","block_type":"box","text":"issued by the U.S. Government or its agencies or instrumentalities, including securities that the Fund","page_number":184,"box":{"x":117,"y":134,"width":752,"height":12}},{"id":"66bbdfa9-a55d-4480-9c9d-dfdb5c7393b4","block_type":"box","text":"could not hold directly under its investment strategies without the repurchase obligation.","page_number":184,"box":{"x":116,"y":149,"width":657,"height":12}},{"id":"ba9bf5be-3e44-4e91-84c9-bc7ac8ae8e7a","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower","page_number":184,"box":{"x":116,"y":180,"width":770,"height":12}},{"id":"49a47817-5ba3-4dc6-9257-7513dabfd5d0","block_type":"box","text":"quality collateral and collateral with longer maturities may be subject to greater price fluctuations than","page_number":184,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"6e851239-1910-4fda-8b97-9b0bb7a604f7","block_type":"box","text":"higher quality collateral and collateral with shorter maturities. If the repurchase agreement counterparty","page_number":184,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"6bbe3adb-9a8b-4259-a4f1-83662a1df3b9","block_type":"box","text":"were to default, lower quality collateral may be more difficult to liquidate than higher quality collateral.","page_number":184,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"a5eea6f0-8cd3-43fe-aeb5-98ddc776f674","block_type":"box","text":"Should the counterparty default and the amount of collateral not be sufficient to cover the","page_number":184,"box":{"x":116,"y":242,"width":666,"height":12}},{"id":"014befa9-1ab2-4c23-917a-f9eb9b80142f","block_type":"box","text":"counterparty’s repurchase obligation, a Fund would retain the status of an unsecured creditor of the","page_number":184,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"b3f3dcd4-cf61-4821-afbd-b05177db6375","block_type":"box","text":"counterparty (","page_number":184,"box":{"x":116,"y":273,"width":103,"height":12}},{"id":"348a7cb5-5fa9-48ee-9d71-b01a0ad0096e","block_type":"box","text":"i.e.","page_number":184,"box":{"x":220,"y":273,"width":20,"height":10}},{"id":"081bc07f-10e2-4b50-88a7-591b206346d4","block_type":"box","text":", the position the Fund would normally be in if it were to hold, pursuant to its","page_number":184,"box":{"x":244,"y":273,"width":565,"height":12}},{"id":"7d2be0cb-e22b-4147-bdd0-449f8ce65049","block_type":"box","text":"investment policies, other unsecured debt securities of the defaulting counterparty) with respect to the","page_number":184,"box":{"x":117,"y":289,"width":760,"height":12}},{"id":"c39c8005-184f-4c83-b587-2c0a1ec07354","block_type":"box","text":"amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the","page_number":184,"box":{"x":116,"y":304,"width":752,"height":12}},{"id":"5571dc9b-fc78-4e5b-9088-847a355c7fb8","block_type":"box","text":"principal and income involved in the transaction.","page_number":184,"box":{"x":117,"y":320,"width":361,"height":12}},{"id":"2b235677-5af2-4f0b-a0e0-ff5d585e2878","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":184,"box":{"x":117,"y":351,"width":761,"height":12}},{"id":"cfda8c05-fba8-46d3-96e9-8fe556a5b92e","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many repurchase agreements","page_number":184,"box":{"x":116,"y":366,"width":771,"height":12}},{"id":"991f52ca-91b5-45f5-9164-bf461606d241","block_type":"box","text":"and purchase and sale contracts, terms that delay or restrict the rights of counterparties, such as a","page_number":184,"box":{"x":116,"y":382,"width":738,"height":12}},{"id":"1ed6f080-c921-4803-b3a8-18cc48916b2b","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":184,"box":{"x":117,"y":397,"width":744,"height":12}},{"id":"44efc764-415a-47e1-9402-a088a9f2456b","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":184,"box":{"x":116,"y":413,"width":748,"height":12}},{"id":"3f99c3eb-3785-423d-bd5e-d437aacd071e","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these new requirements, as well as","page_number":184,"box":{"x":116,"y":428,"width":743,"height":12}},{"id":"3d5595c3-179d-4ad0-9410-4cc4485d6d52","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":184,"box":{"x":117,"y":444,"width":729,"height":12}},{"id":"a48cca20-0e82-40c5-a6f7-1bed45e5b483","block_type":"box","text":"affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale contracts or","page_number":184,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"99a9e5fc-29b1-4ea8-8036-5730da854c71","block_type":"box","text":"to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":184,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"be7d6d61-28b1-4e0c-aec4-0341fad7c389","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally","page_number":184,"box":{"x":117,"y":490,"width":770,"height":12}},{"id":"17e146b3-52d6-45ea-b4b3-05816684d826","block_type":"box","text":"cleared. Compliance with these rules is expected to be required by the middle of 2027. Although the","page_number":184,"box":{"x":116,"y":506,"width":747,"height":12}},{"id":"7be6dc88-dedb-4de1-a9e1-318378d855be","block_type":"box","text":"impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":184,"box":{"x":117,"y":521,"width":770,"height":12}},{"id":"fdef73e9-2241-4f18-b385-23fe76af29c7","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":184,"box":{"x":116,"y":537,"width":563,"height":12}},{"id":"734d8e72-e42e-4838-925e-e2084f7fdeb0","block_type":"box","text":"Restricted Securities.","page_number":184,"box":{"x":116,"y":568,"width":177,"height":9}},{"id":"77369af7-13de-4b8e-9464-dc04da838390","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the","page_number":184,"box":{"x":293,"y":568,"width":539,"height":12}},{"id":"e4a623ec-cf20-4004-8797-e7a7dd800210","block_type":"box","text":"Securities Act (“restricted securities”), which may include securities in private companies and","page_number":184,"box":{"x":116,"y":583,"width":694,"height":12}},{"id":"9e46874f-a2be-4cdd-b091-782de9f81c16","block_type":"box","text":"Rule 144A Securities. Restricted securities may be sold in private placement transactions between","page_number":184,"box":{"x":117,"y":599,"width":736,"height":12}},{"id":"a4e22a3a-6fb1-46ad-8a9e-60ef03b92110","block_type":"box","text":"issuers and their purchasers, including through private negotiated transactions between the issuer and","page_number":184,"box":{"x":117,"y":614,"width":765,"height":12}},{"id":"9c40d911-2584-4d81-828a-2809b12c5ef3","block_type":"box","text":"their purchasers, such as the Funds, and may be neither listed on an exchange nor traded in other","page_number":184,"box":{"x":116,"y":630,"width":736,"height":12}},{"id":"f2a084eb-6c80-4024-92d3-c4a7796480b0","block_type":"box","text":"established markets. In many cases, privately placed securities may not be freely transferable under","page_number":184,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"d4446255-2f4c-4631-80dd-5102e451045e","block_type":"box","text":"the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of these","page_number":184,"box":{"x":116,"y":661,"width":708,"height":12}},{"id":"665b8013-9073-496f-96fd-ca07d2ce3a8d","block_type":"box","text":"securities are new and complex, and trade only among institutions; the markets for these securities are","page_number":184,"box":{"x":116,"y":676,"width":764,"height":12}},{"id":"fbe34032-b231-4dc7-8170-6701fc7bd6be","block_type":"box","text":"still developing and may not function as efficiently as established markets. Typically, investments in","page_number":184,"box":{"x":116,"y":692,"width":736,"height":12}},{"id":"c2e8fdfa-34dc-4194-af8e-65ae755bcfe5","block_type":"box","text":"private companies are in restricted securities that are not traded in public markets and subject to","page_number":184,"box":{"x":117,"y":707,"width":714,"height":12}},{"id":"8c81f3c4-625f-4ee6-8411-71220b4f9f17","block_type":"box","text":"substantial holding periods, so that a Fund may not be able to resell some of its holdings for extended","page_number":184,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"c7a5b647-1c8b-4837-9fd5-0463fc0d4928","block_type":"box","text":"periods, which may be several years. There can be no assurance that a Fund will be able to realize the","page_number":184,"box":{"x":117,"y":738,"width":763,"height":12}},{"id":"1358419f-f288-466f-ad81-711003b993e7","block_type":"box","text":"value of such restricted securities in a timely manner or at all. As a result of the absence of a public","page_number":184,"box":{"x":116,"y":754,"width":736,"height":12}},{"id":"cc52f2d1-fac0-481c-b67f-fca03ee3e0e9","block_type":"box","text":"trading market and the potential bespoke nature on certain transactions, restricted securities may be","page_number":184,"box":{"x":116,"y":769,"width":745,"height":12}},{"id":"4400848f-ec43-4477-87fe-0a759e97fdde","block_type":"box","text":"deemed to be illiquid investments or less liquid investments and may be more difficult to value than","page_number":184,"box":{"x":116,"y":785,"width":734,"height":12}},{"id":"81d39a03-7269-4cb2-8d64-d22d071961b3","block_type":"box","text":"publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":184,"box":{"x":117,"y":800,"width":751,"height":12}},{"id":"c334a52e-95b2-40fd-afb6-4589ef6fad17","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those","page_number":184,"box":{"x":116,"y":816,"width":708,"height":12}},{"id":"129e8575-918b-4e85-912b-907076d8f2f2","block_type":"box","text":"originally paid by the Fund or less than their fair market value. The amount of any discount may vary","page_number":184,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"d773c94b-dcf0-4ff7-8062-ecb2265f3fd3","block_type":"box","text":"depending on the security type, the character of the issuer, which party (if any) will bear the expenses","page_number":184,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"16abb91d-db6a-44b0-83e0-4e344cc2eaa7","block_type":"box","text":"of registering the restricted security, and prevailing market conditions. In addition, issuers whose","page_number":184,"box":{"x":116,"y":862,"width":720,"height":12}},{"id":"2d2f18ac-6d29-4fce-98e6-305a86f12f96","block_type":"box","text":"securities are not publicly traded or who are not otherwise publicly listed may not be subject to the","page_number":184,"box":{"x":116,"y":878,"width":732,"height":12}},{"id":"18af31c0-7f47-489e-928d-4a5287dfeba8","block_type":"box","text":"II-90","page_number":184,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"315b27a6-632b-4bd6-b499-d3f202177c6e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":184,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b5349476-023d-4e63-a602-c10115edd06f","block_type":"box","text":"disclosure and other investor protection requirements that may be applicable if their securities were","page_number":185,"box":{"x":116,"y":87,"width":742,"height":12}},{"id":"3f6555a2-bf73-425d-bdd0-9fedc1bc22e6","block_type":"box","text":"publicly traded. If any privately placed securities held by a Fund are required to be registered under the","page_number":185,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"7d25c560-9b14-4c1b-9496-ab1d1ea5afc8","block_type":"box","text":"securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the","page_number":185,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"78e1985e-632f-4e35-b94e-848271308769","block_type":"box","text":"expenses of registration. Where registration is required for restricted securities, a considerable time","page_number":185,"box":{"x":116,"y":134,"width":743,"height":12}},{"id":"4f46e5aa-d31a-46a6-a1a6-c8779f95ffcf","block_type":"box","text":"period may elapse between the time the Fund decides to sell the security and the time it is actually","page_number":185,"box":{"x":117,"y":149,"width":736,"height":12}},{"id":"a15a38fd-6b21-4a45-923d-29fc6d00be56","block_type":"box","text":"permitted to sell the security under an effective registration statement. If during such period, adverse","page_number":185,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"f0c9ecae-f4a1-424a-a56d-1e27c788f6b4","block_type":"box","text":"market conditions were to develop, the Fund might obtain less favorable pricing terms than when it","page_number":185,"box":{"x":117,"y":180,"width":736,"height":12}},{"id":"b0b7753d-9174-46f5-a041-03cf94277d40","block_type":"box","text":"decided to sell the security. In addition, the Fund may be deemed to be an “underwriter” for purposes","page_number":185,"box":{"x":116,"y":196,"width":755,"height":12}},{"id":"e9ad04d9-205e-43ac-87fa-1df59868407a","block_type":"box","text":"of the Securities Act when selling restricted securities. If so, the Fund may be liable to purchasers of","page_number":185,"box":{"x":116,"y":211,"width":747,"height":12}},{"id":"6bd7fe71-c976-4ea0-a281-648ee1d232d5","block_type":"box","text":"the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":185,"box":{"x":116,"y":227,"width":722,"height":12}},{"id":"3c65c586-0151-46c0-8a7d-015772dcfe32","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other","page_number":185,"box":{"x":117,"y":242,"width":769,"height":12}},{"id":"abf4432b-7679-4ac8-aaf6-a1f6f1a927c4","block_type":"box","text":"transaction costs that are higher than those for transactions in unrestricted securities. Certain of the","page_number":185,"box":{"x":116,"y":258,"width":744,"height":12}},{"id":"5ddc7414-83f7-4d14-afa9-3177e2b01977","block_type":"box","text":"Fund’s investments in private placements may consist of direct investments and may include","page_number":185,"box":{"x":117,"y":273,"width":692,"height":12}},{"id":"353fd2b4-6c22-43cc-9584-2abfc7a6ce64","block_type":"box","text":"investments in smaller, less seasoned issuers, which may involve greater risks. Issuers of restricted","page_number":185,"box":{"x":117,"y":289,"width":744,"height":12}},{"id":"1b64685b-0c4b-45f4-9816-d7bfa248eda4","block_type":"box","text":"securities may not be subject to SEC reporting requirements, may not be required to maintain their","page_number":185,"box":{"x":116,"y":304,"width":737,"height":12}},{"id":"ca0a7339-2ad8-4662-935c-00ab6cd576b6","block_type":"box","text":"accounting records in accordance with generally accepted accounting principles, and may not be","page_number":185,"box":{"x":116,"y":320,"width":724,"height":12}},{"id":"acbc95df-dcfb-4869-ad7a-d84b25a403b9","block_type":"box","text":"required to maintain effective internal controls over financial reporting. As a result, BlackRock may not","page_number":185,"box":{"x":117,"y":335,"width":760,"height":12}},{"id":"51358d13-4294-4dfd-9bbb-c84d17c8ddcf","block_type":"box","text":"have timely or accurate information about the business, financial condition and results of operations of","page_number":185,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"24f0b2a5-cc5f-4799-9fdb-2bd8469739ca","block_type":"box","text":"such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":185,"box":{"x":116,"y":366,"width":764,"height":12}},{"id":"f95e50c5-46df-4800-a89d-070067e50c05","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited","page_number":185,"box":{"x":116,"y":382,"width":729,"height":12}},{"id":"66fc0bf3-7598-46a3-b540-770c06e27f52","block_type":"box","text":"product lines, markets or financial resources, or they may be dependent on a limited management","page_number":185,"box":{"x":117,"y":397,"width":731,"height":12}},{"id":"3b0f4986-b8ec-4882-baea-0d06bf8adf44","block_type":"box","text":"group.","page_number":185,"box":{"x":116,"y":415,"width":52,"height":10}},{"id":"af19776f-2da8-480e-ab88-a98b18219c7f","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":185,"box":{"x":117,"y":444,"width":740,"height":12}},{"id":"222e7c8b-a171-4ee1-a3f7-4a06fd88eac8","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced","page_number":185,"box":{"x":117,"y":459,"width":687,"height":12}},{"id":"74cdf1e6-6591-4c6c-9bda-cfc88941264c","block_type":"box","text":"proportionately as the Fund’s net assets grow from new or additional investments made in the Fund by","page_number":185,"box":{"x":117,"y":475,"width":766,"height":12}},{"id":"5c4ce27d-0ef7-4fc4-92d3-47bb2bf4d982","block_type":"box","text":"other shareholders. The issuer of a private placement may later register those shares for public sale in","page_number":185,"box":{"x":116,"y":490,"width":765,"height":12}},{"id":"9c3fc9b3-b4f2-4331-b10a-0d95dc14a32b","block_type":"box","text":"an IPO, but there is no guarantee that an IPO will ever be completed. Even after an IPO, there may be","page_number":185,"box":{"x":116,"y":506,"width":766,"height":12}},{"id":"b437b36d-9b89-46cd-9854-f2168cd93ef8","block_type":"box","text":"a limited trading market for securities of that issuer, including any direct investment by a Fund, or the","page_number":185,"box":{"x":116,"y":521,"width":752,"height":12}},{"id":"c66a4b06-a488-4419-9c06-e1c0d237546f","block_type":"box","text":"Fund may be subject to contractual limitations on its ability to resell its existing securities following an","page_number":185,"box":{"x":117,"y":537,"width":754,"height":12}},{"id":"c56331aa-29ea-4314-9fa9-c64f5b672a15","block_type":"box","text":"IPO. The inability of an applicable issuer of a restricted security to complete an IPO or offer other","page_number":185,"box":{"x":117,"y":552,"width":723,"height":12}},{"id":"95f2e847-277d-439b-9e61-6e2036735353","block_type":"box","text":"liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":185,"box":{"x":117,"y":568,"width":708,"height":12}},{"id":"28dcc16e-cb53-4b20-8a61-ee4c253e75ca","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making","page_number":185,"box":{"x":117,"y":583,"width":756,"height":12}},{"id":"cf5e3e31-a638-4142-8d46-722f30e2af8e","block_type":"box","text":"investments in such securities, a Fund may obtain access to material nonpublic information, which may","page_number":185,"box":{"x":117,"y":599,"width":770,"height":12}},{"id":"3cc9d4ba-c537-41ab-8b74-3ee40c8971e5","block_type":"box","text":"restrict the Fund’s ability to conduct portfolio transactions in such securities. The activity of identifying,","page_number":185,"box":{"x":117,"y":614,"width":759,"height":12}},{"id":"5952bb0c-07ce-44f2-aea7-216101e3495d","block_type":"box","text":"completing, and realizing upon attractive investments in restricted securities is highly competitive and","page_number":185,"box":{"x":116,"y":630,"width":756,"height":12}},{"id":"604bbf1c-2722-40a4-9a0d-e9650f391a68","block_type":"box","text":"involves a high degree of uncertainty. A Fund will be competing for investments against other similarly","page_number":185,"box":{"x":117,"y":645,"width":761,"height":12}},{"id":"fc50ff7c-9c86-4ebf-85d8-5486a4fb296c","block_type":"box","text":"situated investors. It is possible that competition for appropriate investment opportunities may increase,","page_number":185,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"b1ceb704-1757-4ec8-a23d-31dc67da2f97","block_type":"box","text":"thus potentially reducing the number of investment opportunities available to a Fund and adversely","page_number":185,"box":{"x":116,"y":676,"width":733,"height":12}},{"id":"63e1991c-7ff8-44b9-b35b-90fa458a9495","block_type":"box","text":"affecting the terms upon which investments can be made. There is no assurance that investment","page_number":185,"box":{"x":116,"y":692,"width":719,"height":12}},{"id":"dbeb547a-f228-497f-9ec9-97b6435f0841","block_type":"box","text":"opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":185,"box":{"x":116,"y":707,"width":759,"height":12}},{"id":"0b7ebdd6-8a5b-43d7-8875-50132b9d4152","block_type":"box","text":"especially as that Fund grows in size.","page_number":185,"box":{"x":116,"y":723,"width":277,"height":12}},{"id":"368a0abe-6618-4b6d-a171-d3b35ed5269a","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular,","page_number":185,"box":{"x":116,"y":754,"width":716,"height":12}},{"id":"65027485-bfa2-4a74-a203-61b49f1792a1","block_type":"box","text":"restricted securities issued by private companies) and thus they may be considered “illiquid”. Each","page_number":185,"box":{"x":117,"y":769,"width":728,"height":12}},{"id":"6b87b4b0-597c-41ca-8f54-7916a71a9e44","block_type":"box","text":"Fund values restricted securities in accordance with BlackRock’s valuation policies and procedures,","page_number":185,"box":{"x":117,"y":785,"width":738,"height":12}},{"id":"db416d90-b363-4fb3-932f-7a58768c35cf","block_type":"box","text":"which are designed to value investments such that they accurately reflect fair value. Due to the","page_number":185,"box":{"x":116,"y":800,"width":704,"height":12}},{"id":"ee150059-3029-44c7-a469-a37c0e80ff60","block_type":"box","text":"inherent uncertainty and subjectivity of determining the fair value of investments that do not have a","page_number":185,"box":{"x":117,"y":816,"width":731,"height":12}},{"id":"085f58c9-3658-447e-86c6-dbc6e65e142b","block_type":"box","text":"readily available market value, the fair value of a Fund’s private investments may differ significantly","page_number":185,"box":{"x":117,"y":831,"width":739,"height":12}},{"id":"888d63d6-fd38-4e9a-9310-3966dc403b21","block_type":"box","text":"from the values that would have been used had a readily available market value existed for such","page_number":185,"box":{"x":116,"y":847,"width":721,"height":12}},{"id":"6a4e936c-c22c-4ec4-ba72-ca9549648404","block_type":"box","text":"investments and may differ materially from the amounts the Fund may realize on any dispositions of","page_number":185,"box":{"x":117,"y":862,"width":745,"height":12}},{"id":"225d83ed-a9dc-4506-9cbb-56fcd879d28b","block_type":"box","text":"such investments. Differences in the value of the Fund’s private investments could result in the Fund’s","page_number":185,"box":{"x":116,"y":878,"width":763,"height":12}},{"id":"21349843-5a7b-4624-924c-a8320f7cb7cc","block_type":"box","text":"II-91","page_number":185,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"4b1065a1-6efd-4f84-9c41-e934c856be17","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":185,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ea962ca5-ad49-487c-bbdd-5549f34b93ae","block_type":"box","text":"shareholder transactions being effected at a NAV that does not accurately reflect the underlying value","page_number":186,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"5e2fd91d-35aa-4d88-8b41-5c613bc146ad","block_type":"box","text":"of the Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing","page_number":186,"box":{"x":116,"y":102,"width":718,"height":13}},{"id":"1e148846-cafd-4c14-8cbb-c1c01909ef80","block_type":"box","text":"opportunities for shareholder arbitrage. The values used by the Fund to price its restricted securities","page_number":186,"box":{"x":116,"y":118,"width":747,"height":12}},{"id":"5a7cb07e-e6e5-4bcb-a583-fc0613389ccf","block_type":"box","text":"may also differ from those used by other investment companies and investors to price the same","page_number":186,"box":{"x":117,"y":134,"width":715,"height":12}},{"id":"b30a074c-8ec1-44e4-af3b-e2cfc066aacf","block_type":"box","text":"restricted securities. In addition, the impact of changes in the market environment and other events on","page_number":186,"box":{"x":117,"y":149,"width":763,"height":12}},{"id":"7faaac1a-a19a-40c4-9657-1266395a597b","block_type":"box","text":"the fair values of a Fund’s investments that have no readily available market values may differ from the","page_number":186,"box":{"x":116,"y":165,"width":769,"height":12}},{"id":"893358c0-dccd-457d-b158-eddc244e4a59","block_type":"box","text":"impact of such changes on the readily available market values for the Fund’s other investments. A","page_number":186,"box":{"x":117,"y":180,"width":732,"height":12}},{"id":"36c4a494-b560-4d97-9aef-ec23334b1104","block_type":"box","text":"Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair value of the","page_number":186,"box":{"x":117,"y":196,"width":738,"height":12}},{"id":"4b577761-7253-46a2-abd9-185a8fece8cb","block_type":"box","text":"Fund’s investments were materially higher than the investment’s actual market or fair value or the","page_number":186,"box":{"x":117,"y":211,"width":728,"height":12}},{"id":"cfc8836e-add3-4b68-9ee6-37ca5487de6f","block_type":"box","text":"values that the Fund ultimately realizes upon the disposal of such investments.","page_number":186,"box":{"x":116,"y":227,"width":590,"height":12}},{"id":"857c3648-b08e-416a-b1ac-49a9bdda2aba","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":186,"box":{"x":116,"y":258,"width":400,"height":11}},{"id":"b8331802-8a13-4e28-bb37-9d4719cd79cd","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":186,"box":{"x":116,"y":289,"width":271,"height":12}},{"id":"713f2a77-cb48-4986-bb57-b2bde0d83443","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the","page_number":186,"box":{"x":389,"y":289,"width":481,"height":12}},{"id":"b28ee344-d7b4-44fe-b3ec-386a9d7e0d1c","block_type":"box","text":"same parties with whom it may enter into repurchase agreements. Under a reverse repurchase","page_number":186,"box":{"x":116,"y":304,"width":711,"height":12}},{"id":"26e5d27a-8d35-4270-8ba3-f22f21cdd84a","block_type":"box","text":"agreement, a Fund sells securities to another party and agrees to repurchase them at a particular date","page_number":186,"box":{"x":116,"y":320,"width":766,"height":12}},{"id":"99115bb1-b6c0-4425-a34d-f28dcba5f6ea","block_type":"box","text":"and price. A Fund may enter into a reverse repurchase agreement when it is anticipated that the","page_number":186,"box":{"x":116,"y":335,"width":719,"height":12}},{"id":"58486e10-39ff-452d-8f32-0e086e717707","block_type":"box","text":"interest income to be earned from the investment of the proceeds of the transaction is greater than the","page_number":186,"box":{"x":117,"y":351,"width":765,"height":12}},{"id":"0353858f-0e4f-4ab1-afef-c76d8a524a48","block_type":"box","text":"interest expense of the transaction.","page_number":186,"box":{"x":117,"y":366,"width":265,"height":12}},{"id":"b55e0d3f-869f-4d46-a9bf-67e97d5a6eba","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":186,"box":{"x":116,"y":397,"width":772,"height":12}},{"id":"85623154-1358-41fb-91a0-7461d10d4b0e","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the","page_number":186,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"ab037a93-2631-4148-b9d8-80e8d39ea52c","block_type":"box","text":"investment of the proceeds will be less than the interest expense, (ii) the market value of the securities","page_number":186,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"e6f9b929-9823-4ed4-bfbe-88b3cd16320e","block_type":"box","text":"retained in lieu of sale by a Fund may decline below","page_number":186,"box":{"x":117,"y":444,"width":390,"height":12}},{"id":"7243a6b5-6cb1-4a69-8d45-c073327a8b0b","block_type":"box","text":"the price of the securities the Fund has sold but is","page_number":186,"box":{"x":507,"y":444,"width":375,"height":12}},{"id":"62c5a8b1-cee8-4a46-9a6c-bee1b28b005b","block_type":"box","text":"obligated to repurchase, (iii) the market value of the securities sold will decline below the price at which","page_number":186,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"b71982cf-b420-4166-be8e-bd583ecf62d8","block_type":"box","text":"the Fund is required to repurchase them and (iv) the securities will not be returned to the Fund.","page_number":186,"box":{"x":116,"y":475,"width":710,"height":12}},{"id":"31874e06-cec2-4a53-8cf8-a58d047b4662","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or","page_number":186,"box":{"x":117,"y":506,"width":731,"height":12}},{"id":"060cbe3b-4a19-48ef-a15a-89bc9add5496","block_type":"box","text":"becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine","page_number":186,"box":{"x":117,"y":521,"width":765,"height":12}},{"id":"5b772b0a-58f4-451b-bbf6-1c69f8fe5d03","block_type":"box","text":"whether to enforce a Fund’s obligations to repurchase the securities and the Fund’s use of the","page_number":186,"box":{"x":116,"y":537,"width":704,"height":12}},{"id":"47e46d6b-49be-4344-b79d-84666682d8f0","block_type":"box","text":"proceeds of the reverse repurchase agreement may effectively be restricted pending such decision.","page_number":186,"box":{"x":117,"y":552,"width":744,"height":12}},{"id":"90c52eae-7e07-4564-b1b3-9accbfdbb353","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase","page_number":186,"box":{"x":117,"y":583,"width":710,"height":12}},{"id":"ce0bd9f9-a932-4bdb-9953-0efd949bfdbb","block_type":"box","text":"agreements and similar financing transactions (e.g., recourse and non-recourse tender option bonds,","page_number":186,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"dcf2ca9a-771d-482e-b8b3-ead41d8172b3","block_type":"box","text":"borrowed bonds) notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":186,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"9901e229-f0fa-40f5-b35e-5723486d538d","block_type":"box","text":"Investment Company Act, provided that the Fund either (i) complies with the 300% asset coverage","page_number":186,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"448d337e-2838-4221-8338-f7dd45d12d55","block_type":"box","text":"ratio with respect to all such transactions and any other borrowings in the aggregate, or (ii) treats all","page_number":186,"box":{"x":117,"y":645,"width":744,"height":12}},{"id":"0697c2ac-84a1-46e5-9966-1a6f070879e4","block_type":"box","text":"such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives—Regulation of","page_number":186,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"d2219ca2-295c-4fe3-8cc4-1b342cbe8322","block_type":"box","text":"Derivatives—Rule 18f-4 under the Investment Company Act” above. The SEC has also finalized rules","page_number":186,"box":{"x":117,"y":676,"width":753,"height":12}},{"id":"3c27cb84-16a6-4e20-85df-dabe0985b3fb","block_type":"box","text":"that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":186,"box":{"x":116,"y":692,"width":680,"height":12}},{"id":"03b0ad7d-efe0-4cfd-b964-e13baab1142c","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the","page_number":186,"box":{"x":116,"y":707,"width":731,"height":12}},{"id":"33101fdd-04f5-4b21-8241-e0be81d5367b","block_type":"box","text":"middle of 2027. Although the impact of these rules on the Funds is difficult to predict, they may reduce","page_number":186,"box":{"x":117,"y":723,"width":757,"height":12}},{"id":"768d8e85-d389-445a-aef9-b85b44cf52f3","block_type":"box","text":"the availability or increase the costs of such transactions and may adversely affect a Fund’s","page_number":186,"box":{"x":116,"y":738,"width":680,"height":12}},{"id":"387808fd-049f-4827-a26b-64bb933dda44","block_type":"box","text":"performance.","page_number":186,"box":{"x":117,"y":754,"width":96,"height":12}},{"id":"d23ba632-da8e-45d1-a826-e1cfb9f7d8a8","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated","page_number":186,"box":{"x":116,"y":785,"width":701,"height":12}},{"id":"162348c5-babe-4be2-8d51-816774e61c3f","block_type":"box","text":"counterparties and certain of their affiliates to include in certain financial contracts, including many","page_number":186,"box":{"x":116,"y":800,"width":727,"height":12}},{"id":"887c60d0-fa68-4ff6-9516-f2a9f01005a9","block_type":"box","text":"reverse repurchase agreements, terms that delay or restrict the rights of counterparties, such as a","page_number":186,"box":{"x":117,"y":816,"width":727,"height":12}},{"id":"c161dd77-471d-4978-bcaa-073dba4d3197","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":186,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"e9b5b47c-5422-4abb-860d-08296ca7ac72","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":186,"box":{"x":116,"y":847,"width":748,"height":12}},{"id":"3f699bf0-8a1c-4d53-a819-a17a84804e91","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these requirements, as well as","page_number":186,"box":{"x":116,"y":862,"width":707,"height":12}},{"id":"c89985b7-f58d-47be-8094-ed9f0e127262","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":186,"box":{"x":117,"y":878,"width":729,"height":12}},{"id":"1b441042-e265-4b5f-b0b3-fbad07e1d792","block_type":"box","text":"II-92","page_number":186,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"d2616e68-ad3d-4790-9077-082b843134c5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":186,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c79bc7f2-ce04-44e4-b2a8-05a0f588b132","block_type":"box","text":"affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize amounts to be","page_number":187,"box":{"x":116,"y":87,"width":765,"height":12}},{"id":"f49f125b-d8f2-4fd6-aa62-dcb5f0ee7f72","block_type":"box","text":"received under such agreements.","page_number":187,"box":{"x":117,"y":103,"width":253,"height":12}},{"id":"66f654a1-c2b7-467a-84cf-ebd34ab530c3","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":187,"box":{"x":116,"y":134,"width":349,"height":12}},{"id":"3654784b-05ab-4a40-a4f9-4ae52b1867f4","block_type":"box","text":"Certain Funds may participate in rights offerings and","page_number":187,"box":{"x":466,"y":134,"width":399,"height":12}},{"id":"a970ff3c-fad0-44a3-8e19-40fa480c121e","block_type":"box","text":"may purchase warrants, which are privileges issued by corporations enabling the owners to subscribe","page_number":187,"box":{"x":117,"y":149,"width":759,"height":12}},{"id":"4bdb6578-1b28-42d7-8b64-cbb9190a5856","block_type":"box","text":"to and purchase a specified number of shares of the corporation at a specified price during a specified","page_number":187,"box":{"x":116,"y":165,"width":763,"height":12}},{"id":"70925459-7ba6-4ca1-a3ab-88bddbd2c946","block_type":"box","text":"period of time. Subscription rights normally have a short life span to expiration. The purchase of rights","page_number":187,"box":{"x":117,"y":180,"width":759,"height":12}},{"id":"047f159d-9717-4eef-8bdb-0ed06b27076e","block_type":"box","text":"or warrants involves the risk that a Fund could lose the purchase value of a right or warrant if the right","page_number":187,"box":{"x":116,"y":196,"width":760,"height":12}},{"id":"e45d87b0-3f3f-4ec8-9635-3c85f7b321ce","block_type":"box","text":"to subscribe to additional shares is not exercised prior to the rights’ and warrants’ expiration. Also, the","page_number":187,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"07026c02-bbc0-48c2-8f99-76af2beff449","block_type":"box","text":"purchase of rights and/or warrants involves the risk that the effective price paid for the right and/or","page_number":187,"box":{"x":117,"y":227,"width":732,"height":12}},{"id":"8acaf52f-7460-44d2-9f04-4859465e0c46","block_type":"box","text":"warrant added to the subscription price of the related security may exceed the value of the subscribed","page_number":187,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"14fe72ac-e092-4511-bdb7-c07acf23c489","block_type":"box","text":"security’s market price such as when there is no movement in the level of the underlying security.","page_number":187,"box":{"x":116,"y":258,"width":728,"height":12}},{"id":"eee69abb-1829-499d-9e5d-bed57ea2c2ed","block_type":"box","text":"Buying a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder","page_number":187,"box":{"x":117,"y":273,"width":747,"height":12}},{"id":"498c7572-2486-47e8-8a7d-3e205d29fa5f","block_type":"box","text":"has no voting or dividend rights with respect to the underlying stock. A warrant does not carry any right","page_number":187,"box":{"x":117,"y":289,"width":766,"height":12}},{"id":"2ddaca5c-f3bd-4755-bbf3-63140287f51e","block_type":"box","text":"to assets of the issuer, and for this reason investments in warrants may be more speculative than other","page_number":187,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"718b2543-e327-4d66-9761-7b96283187e7","block_type":"box","text":"equity-based investments.","page_number":187,"box":{"x":116,"y":320,"width":200,"height":12}},{"id":"3685fd08-6901-4bcb-9263-28f388612769","block_type":"box","text":"Rule 144A Securities.","page_number":187,"box":{"x":116,"y":351,"width":170,"height":9}},{"id":"ff08d43a-9ef9-4c4e-a70f-f2da790f3049","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":187,"box":{"x":287,"y":351,"width":590,"height":12}},{"id":"f412ad51-9a3a-4f01-b493-a57c71e8eee4","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":187,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"8f6d41fa-340a-4329-975f-3bbf2bf41f31","block_type":"box","text":"Securities Lending.","page_number":187,"box":{"x":117,"y":397,"width":153,"height":12}},{"id":"73e41ec4-81af-4354-b299-de2eb579f447","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock","page_number":187,"box":{"x":271,"y":397,"width":575,"height":12}},{"id":"5520a749-df3f-48ed-aed7-07fec1b08602","block_type":"box","text":"determines to be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide","page_number":187,"box":{"x":116,"y":413,"width":744,"height":12}},{"id":"2d8e74e4-bca1-4206-a309-ccefe2597b79","block_type":"box","text":"collateral that is maintained in an amount at least","page_number":187,"box":{"x":116,"y":428,"width":369,"height":10}},{"id":"a9454e07-abf8-476c-9ad6-12f5b1601e02","block_type":"box","text":"equal to the current market value of the securities","page_number":187,"box":{"x":486,"y":428,"width":373,"height":12}},{"id":"f2c0604c-0970-4798-b5b0-76cbd850fb16","block_type":"box","text":"loaned. No securities loan shall be made on behalf of a Fund if, as a result, the aggregate value of all","page_number":187,"box":{"x":117,"y":444,"width":755,"height":12}},{"id":"e8709e79-9a9a-4343-be06-51591f610571","block_type":"box","text":"securities loans of the particular Fund exceeds one-third of the value of such Fund’s total assets","page_number":187,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"9ffc0385-17c1-42a5-9b80-eb4921935101","block_type":"box","text":"(including the value of the collateral received). A Fund may terminate a loan at any time and obtain the","page_number":187,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"5c256709-a2c9-47f2-aa78-5fcb2d82b4a5","block_type":"box","text":"return of the securities loaned. Each Fund receives, by way of substitute payment, the value of any","page_number":187,"box":{"x":117,"y":490,"width":738,"height":12}},{"id":"f357d010-6b69-4f2d-9ec7-9ee8292c3c5f","block_type":"box","text":"interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise","page_number":187,"box":{"x":117,"y":506,"width":738,"height":12}},{"id":"6c29a0f7-985d-4e39-9046-ae3e0c766c5b","block_type":"box","text":"received if the securities were not on loan.","page_number":187,"box":{"x":117,"y":521,"width":318,"height":10}},{"id":"7f2ba5d4-4018-45a8-a08e-4705522416c8","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee","page_number":187,"box":{"x":116,"y":552,"width":732,"height":12}},{"id":"ac517e50-fa8e-4bad-a64a-35cc386a4d54","block_type":"box","text":"based on the amount of cash collateral. The Funds are compensated by any positive difference","page_number":187,"box":{"x":117,"y":568,"width":712,"height":12}},{"id":"5e5d3b21-5824-44aa-8bee-9c3f3862e3f9","block_type":"box","text":"between the amount earned on the reinvestment of cash collateral and the fee paid to the borrower. In","page_number":187,"box":{"x":117,"y":583,"width":763,"height":12}},{"id":"a172f25e-f6d5-4947-bb9e-8e2e8fae2e00","block_type":"box","text":"the case of collateral other than cash, a Fund is compensated by a fee paid by the borrower equal to a","page_number":187,"box":{"x":116,"y":599,"width":765,"height":12}},{"id":"410dd00d-c359-4846-ac38-5b0989649dec","block_type":"box","text":"percentage of the market value of the loaned securities. Any cash collateral received by the Fund for","page_number":187,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"4cd0bb35-6003-4e4d-86f1-55c7392e232f","block_type":"box","text":"such loans, and uninvested cash, may be reinvested in certain short-term instruments either directly on","page_number":187,"box":{"x":116,"y":630,"width":770,"height":12}},{"id":"08dcb6f7-ad08-42a4-839a-a9abf1c2cfc7","block_type":"box","text":"behalf of the Fund or through one or more joint accounts or money market funds, including those","page_number":187,"box":{"x":117,"y":645,"width":722,"height":12}},{"id":"abe1fd18-2a14-4aa0-ad93-70bb43dcc474","block_type":"box","text":"affiliated with BlackRock; such investments are subject to investment risk.","page_number":187,"box":{"x":116,"y":661,"width":546,"height":12}},{"id":"6710caf4-e43b-49a3-8580-94f6924317f5","block_type":"box","text":"Securities lending involves exposure to","page_number":187,"box":{"x":116,"y":692,"width":284,"height":12}},{"id":"8b941b21-3ff0-4afc-82e6-82d0cf0eb80f","block_type":"box","text":"certain risks, including operational risk (","page_number":187,"box":{"x":405,"y":692,"width":286,"height":12}},{"id":"73b202eb-267e-4252-944c-7bb559cae76f","block_type":"box","text":"i.e.","page_number":187,"box":{"x":692,"y":692,"width":20,"height":9}},{"id":"5b59f7cb-7c8b-413b-a647-4a007f97d416","block_type":"box","text":", the risk of losses","page_number":187,"box":{"x":715,"y":692,"width":130,"height":11}},{"id":"f534d6c9-5cfc-4572-bb69-d25560b248cb","block_type":"box","text":"resulting from problems in the settlement and accounting process), “gap” risk (","page_number":187,"box":{"x":117,"y":707,"width":567,"height":12}},{"id":"54e8d8ef-32f0-47f3-97ad-85c6b425330e","block_type":"box","text":"i.e.","page_number":187,"box":{"x":685,"y":707,"width":20,"height":10}},{"id":"32467bce-440e-4829-adb6-5332f6e6ddbf","block_type":"box","text":", the risk of a mismatch","page_number":187,"box":{"x":708,"y":707,"width":167,"height":11}},{"id":"6ffabf17-1978-4bce-aee3-56a9a7c9b141","block_type":"box","text":"between the return on cash collateral reinvestments and the fees each Fund has agreed to pay a","page_number":187,"box":{"x":117,"y":723,"width":703,"height":12}},{"id":"775cb2cb-e69d-4177-b4d1-8be6769eb9cd","block_type":"box","text":"borrower), foreign exchange risk (","page_number":187,"box":{"x":117,"y":738,"width":244,"height":12}},{"id":"2f3bdf67-4c65-41d8-93a3-bd0be8dc0888","block_type":"box","text":"i.e.","page_number":187,"box":{"x":362,"y":738,"width":20,"height":10}},{"id":"1d87325b-b0e1-443f-8f29-9af972dbb148","block_type":"box","text":", the risk of a shortfall at default when a cash collateral investment is","page_number":187,"box":{"x":385,"y":738,"width":494,"height":11}},{"id":"401ceeae-2457-440f-bb81-4f27f83309a2","block_type":"box","text":"denominated in a currency other than the currency","page_number":187,"box":{"x":116,"y":754,"width":368,"height":12}},{"id":"bfbe087b-5f8c-496c-a34c-d2172cfba2fa","block_type":"box","text":"of the assets being loaned due to movements in","page_number":187,"box":{"x":489,"y":754,"width":348,"height":12}},{"id":"c32394ad-6103-4284-b27f-e20089d606b6","block_type":"box","text":"foreign exchange rates), and credit, legal, counterparty","page_number":187,"box":{"x":116,"y":769,"width":398,"height":12}},{"id":"cfda4512-f374-41a6-8b6f-21c263ece6e3","block_type":"box","text":"and market risks (including the risk that market","page_number":187,"box":{"x":519,"y":769,"width":340,"height":12}},{"id":"1c3b9464-8c94-4474-9e6b-af3a571ad63b","block_type":"box","text":"events, including but not limited to corporate actions,","page_number":187,"box":{"x":116,"y":785,"width":381,"height":12}},{"id":"d87cf453-d6f2-48b8-87e3-131e814be85c","block_type":"box","text":"could lead a Fund to lend securities that are trading","page_number":187,"box":{"x":504,"y":785,"width":372,"height":12}},{"id":"0452e124-441a-4b7f-9b74-b0ee69c95d9f","block_type":"box","text":"at a premium due to increased demand, or to recall loaned","page_number":187,"box":{"x":116,"y":800,"width":425,"height":12}},{"id":"68966060-06c7-43fe-8872-11b9f63201f0","block_type":"box","text":"securities or to lend less or not at all, which","page_number":187,"box":{"x":547,"y":800,"width":312,"height":11}},{"id":"b5a5c687-6f6d-4157-8057-502303681844","block_type":"box","text":"could lead to reduced securities lending revenue). If a Fund","page_number":187,"box":{"x":116,"y":816,"width":431,"height":12}},{"id":"0f820f7b-28a1-4727-ab4c-32b6e3022504","block_type":"box","text":"were to lend out securities that are subject to","page_number":187,"box":{"x":553,"y":816,"width":326,"height":12}},{"id":"8253b794-28e6-4e99-9133-e6a5b9d67a9a","block_type":"box","text":"a corporate action and commit to the borrower a","page_number":187,"box":{"x":116,"y":831,"width":355,"height":12}},{"id":"835984c0-6d31-4438-8e07-8bfa07647572","block_type":"box","text":"particular election as determined by the Fund’s","page_number":187,"box":{"x":472,"y":831,"width":345,"height":12}},{"id":"a733ac97-5a25-485e-93ee-bec42700f69e","block_type":"box","text":"investment adviser, the benefit the Fund would receive","page_number":187,"box":{"x":117,"y":847,"width":401,"height":11}},{"id":"1d8c8573-b400-45f1-900e-ba87b59a6521","block_type":"box","text":"in respect of committing to such election may or","page_number":187,"box":{"x":519,"y":847,"width":352,"height":12}},{"id":"a7dc2da2-7c40-4b51-9dfe-55d6f40dc086","block_type":"box","text":"may not be less than the benefit the Fund would have received from making a different election in such","page_number":187,"box":{"x":117,"y":862,"width":752,"height":12}},{"id":"25e8fd4f-85e2-4fb6-9a35-37f08d85744f","block_type":"box","text":"corporate action. If a securities lending counterparty","page_number":187,"box":{"x":116,"y":878,"width":377,"height":12}},{"id":"f871453c-2d59-4045-a7f0-c83c9363ed3c","block_type":"box","text":"y were to default, a Fund would be subject to the risk","page_number":187,"box":{"x":493,"y":878,"width":381,"height":12}},{"id":"ba4cefb3-8106-45e9-bcbe-f74aa3af6a65","block_type":"box","text":"II-93","page_number":187,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7c0379cf-64f3-470d-b774-15e4ed784ac7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":187,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"65d7d3d7-68ba-437a-866c-e0cabae59e28","block_type":"box","text":"of a possible delay in receiving collateral or in re","page_number":188,"box":{"x":116,"y":87,"width":349,"height":12}},{"id":"ccec6bad-9687-438d-a75e-e74811e73be4","block_type":"box","text":"covering the loaned securities, or to a possible loss of","page_number":188,"box":{"x":466,"y":87,"width":394,"height":12}},{"id":"7a570c9e-b7c8-47cd-a711-10a062a66ca2","block_type":"box","text":"rights in the collateral. In the event a borrower does","page_number":188,"box":{"x":117,"y":103,"width":372,"height":12}},{"id":"497fb9e8-e082-4493-b6dd-37a9479f579a","block_type":"box","text":"not return a Fund’s securities as agreed, the Fund’s","page_number":188,"box":{"x":489,"y":103,"width":386,"height":12}},{"id":"28b11f71-f27b-4c60-8b02-6d883d4ec8cb","block_type":"box","text":"ability to participate in a corporate action event ma","page_number":188,"box":{"x":116,"y":118,"width":366,"height":12}},{"id":"118f1038-0be4-4edc-beee-f126fb8cfab3","block_type":"box","text":"y be impacted, or the Fund may experience losses if","page_number":188,"box":{"x":482,"y":118,"width":386,"height":12}},{"id":"6c2c3df3-f890-4687-a255-6f8e37b85f5b","block_type":"box","text":"the proceeds received from liquidating the collateral do","page_number":188,"box":{"x":116,"y":134,"width":403,"height":12}},{"id":"c704139c-2e35-4d97-b633-8c34e98f7e29","block_type":"box","text":"not at least equal the value of the loaned security","page_number":188,"box":{"x":520,"y":134,"width":361,"height":12}},{"id":"86e47eeb-9840-48a7-8bd2-2c01ee96e433","block_type":"box","text":"at the time the collateral is liquidated, plus the t","page_number":188,"box":{"x":116,"y":149,"width":337,"height":12}},{"id":"078661aa-9eb1-45ac-8aff-9995479bb796","block_type":"box","text":"transaction costs incurred in purchasing replacement","page_number":188,"box":{"x":453,"y":149,"width":389,"height":12}},{"id":"268ebe77-260e-4606-8e18-da71cf517584","block_type":"box","text":"securities. 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Substitute","page_number":188,"box":{"x":495,"y":180,"width":338,"height":12}},{"id":"1e3cff92-93e3-4bca-993a-3b2b1a42f03d","block_type":"box","text":"payments received by a Fund representing dividends","page_number":188,"box":{"x":117,"y":196,"width":390,"height":12}},{"id":"8429fe92-4622-4703-85bc-984171a32927","block_type":"box","text":"paid on securities loaned out by the Fund will not","page_number":188,"box":{"x":508,"y":196,"width":359,"height":12}},{"id":"ee98a5e5-d9c9-4b27-a64a-9bf310205a27","block_type":"box","text":"be considered qualified dividend income, and distributions by the Fund of such substitute payments will","page_number":188,"box":{"x":117,"y":211,"width":752,"height":12}},{"id":"5ae5c828-17f3-4d62-9621-ff7aa7856658","block_type":"box","text":"not constitute qualified dividend income. Additi","page_number":188,"box":{"x":117,"y":227,"width":335,"height":11}},{"id":"d8d829a7-5e6c-4154-ab3e-bd7404ce08f6","block_type":"box","text":"onally, substitute payments received by a Fund","page_number":188,"box":{"x":453,"y":227,"width":347,"height":12}},{"id":"7baf09ca-951e-4a93-958d-2334bdc64dfb","block_type":"box","text":"representing qualified REIT dividends paid on REI","page_number":188,"box":{"x":117,"y":242,"width":361,"height":12}},{"id":"25fc9591-fa4e-4ab1-8ccb-a81199efabf2","block_type":"box","text":"T securities loaned out by the Fund will not be","page_number":188,"box":{"x":480,"y":242,"width":339,"height":12}},{"id":"33a3b001-e164-44c0-8e8f-2f2181208235","block_type":"box","text":"considered qualified REIT dividends, and distributions","page_number":188,"box":{"x":116,"y":258,"width":395,"height":11}},{"id":"4b6becc0-fdb8-4824-8435-f16cd296ed46","block_type":"box","text":"by the Fund of such substitute payments will not","page_number":188,"box":{"x":512,"y":258,"width":354,"height":12}},{"id":"d20f2e87-5ceb-4684-8605-f10da02b2eae","block_type":"box","text":"be eligible for a 20% deduction currently availabl","page_number":188,"box":{"x":117,"y":273,"width":350,"height":12}},{"id":"d91a0d46-6ff3-4750-bcf5-2eead998635a","block_type":"box","text":"e for ordinary REIT dividends paid to non-corporate","page_number":188,"box":{"x":469,"y":273,"width":378,"height":12}},{"id":"7d3561f0-e841-4d73-a64c-c31621ff61e5","block_type":"box","text":"shareholders provided certain other requirements are sa","page_number":188,"box":{"x":116,"y":289,"width":409,"height":12}},{"id":"19fd2526-961b-4077-a110-6a9bb3622990","block_type":"box","text":"tisfied. The securities lending agent will take into","page_number":188,"box":{"x":526,"y":289,"width":356,"height":12}},{"id":"1a97bbf4-f6f7-4bfa-997d-a7611e96a192","block_type":"box","text":"account the tax effects on shareholders caused by","page_number":188,"box":{"x":116,"y":304,"width":367,"height":12}},{"id":"bb1e9c75-73fd-4a54-b73f-1f6264d29a22","block_type":"box","text":"y these differences in connection with a Fund’s","page_number":188,"box":{"x":483,"y":304,"width":337,"height":10}},{"id":"83986676-e7b5-4f59-aa95-24cd17db5e86","block_type":"box","text":"securities lending program. Substitute payments re","page_number":188,"box":{"x":116,"y":320,"width":370,"height":12}},{"id":"a1af4d91-2218-4da9-b1e2-4c9e68a822ea","block_type":"box","text":"ceived on tax-exempt securities loaned out will not be","page_number":188,"box":{"x":487,"y":320,"width":393,"height":12}},{"id":"0319f077-938c-45b7-be06-26c43d92447d","block_type":"box","text":"tax-exempt income. There could also be changes in","page_number":188,"box":{"x":116,"y":335,"width":376,"height":12}},{"id":"8b26f315-5f2e-42b6-86c7-e3fecc321212","block_type":"box","text":"the status of issuers under applicable laws and","page_number":188,"box":{"x":493,"y":335,"width":350,"height":12}},{"id":"d724f724-d658-4c8f-9516-4892ea801205","block_type":"box","text":"regulations, including tax regulations, that may impact t","page_number":188,"box":{"x":117,"y":351,"width":395,"height":12}},{"id":"242a1704-83e6-43d4-bd1b-6571e3e89bb4","block_type":"box","text":"the regulatory or tax treatment of loaned securities","page_number":188,"box":{"x":512,"y":351,"width":371,"height":12}},{"id":"82c8d69b-9d88-4020-8f22-cc846633ab9e","block_type":"box","text":"and could, for example, result in a delay in t","page_number":188,"box":{"x":116,"y":366,"width":317,"height":12}},{"id":"3972ad4d-3d56-4fb2-ad91-aa57b6936449","block_type":"box","text":"he payment of dividend equivalent payments owed to a Fund","page_number":188,"box":{"x":434,"y":366,"width":448,"height":12}},{"id":"d0bad505-5d44-455c-90b5-939dcdfa9029","block_type":"box","text":"(as permitted by applicable law).","page_number":188,"box":{"x":117,"y":382,"width":239,"height":12}},{"id":"5f07bca3-2f81-449f-a9da-ffee74c11132","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":188,"box":{"x":117,"y":413,"width":761,"height":12}},{"id":"c8ddb010-153c-4edf-8119-85e581b6d686","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many securities lending","page_number":188,"box":{"x":116,"y":428,"width":723,"height":12}},{"id":"4cce068e-9d14-4111-a6db-2e44dee97465","block_type":"box","text":"agreements, terms that delay or restrict the rights of counterparties, such as the Fund, to terminate","page_number":188,"box":{"x":116,"y":444,"width":739,"height":12}},{"id":"01e2fd9d-2244-42a3-a8f7-8956178e9e1b","block_type":"box","text":"such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":188,"box":{"x":116,"y":459,"width":751,"height":12}},{"id":"d352fec6-d6f2-478c-b291-a1d6146f7e32","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution","page_number":188,"box":{"x":116,"y":475,"width":754,"height":12}},{"id":"e9fac56f-dc26-4bb7-b7f6-49b6fa8b0b82","block_type":"box","text":"or insolvency proceedings. It is possible that these requirements, as well as potential additional","page_number":188,"box":{"x":116,"y":490,"width":711,"height":12}},{"id":"5d031bd4-5f9f-4e28-ab29-6db34bb77c87","block_type":"box","text":"government regulation and other developments in the market, could adversely affect the Fund’s ability","page_number":188,"box":{"x":116,"y":506,"width":762,"height":12}},{"id":"7416ce82-d2e2-40fc-b0ef-d44d1bb47949","block_type":"box","text":"to terminate existing securities lending agreements or to realize amounts to be received under such","page_number":188,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"937f1353-b116-44c8-b827-9dd633cde7b5","block_type":"box","text":"agreements. Prudential regulation may also favor lenders that can provide additional protections, such","page_number":188,"box":{"x":116,"y":537,"width":764,"height":12}},{"id":"9f1bcd56-2911-456e-8a26-98bc41b062bf","block_type":"box","text":"as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to","page_number":188,"box":{"x":116,"y":552,"width":763,"height":12}},{"id":"8dd78128-b22c-4177-92a4-7562d4963567","block_type":"box","text":"provide additional protections to borrowers, where permitted pursuant to a Fund’s investment policies","page_number":188,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"e470cf82-53ff-4862-8185-bbf3ba88ac69","block_type":"box","text":"and if BlackRock believes doing so is in the best interest of the Fund.","page_number":188,"box":{"x":116,"y":583,"width":518,"height":12}},{"id":"e595bb81-2247-498c-bb75-0cd1a4d9306b","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan","page_number":188,"box":{"x":116,"y":614,"width":698,"height":12}},{"id":"1f15fc4d-f40e-4ddc-a6f5-569bed7fb8c8","block_type":"box","text":"transaction information (not including party names); this may include, but is not limited to, information","page_number":188,"box":{"x":116,"y":630,"width":755,"height":12}},{"id":"854dab14-5553-4465-8cc8-d11ea502b479","block_type":"box","text":"about securities loans entered into in connection with short sales. Compliance with this rule is expected","page_number":188,"box":{"x":116,"y":645,"width":771,"height":12}},{"id":"992b789e-6c06-4423-aca2-8fce45234f25","block_type":"box","text":"to be required in late 2028, although in response to the outcome of a legal challenge against the rule,","page_number":188,"box":{"x":116,"y":661,"width":750,"height":12}},{"id":"3f54bcaf-6137-4841-a795-29995c235d15","block_type":"box","text":"the SEC may amend the rule and/or delay the current expected compliance date.","page_number":188,"box":{"x":116,"y":676,"width":602,"height":12}},{"id":"d5f09565-025a-4125-a1c0-341e913ef91b","block_type":"box","text":"Short Sales.","page_number":188,"box":{"x":117,"y":707,"width":95,"height":10}},{"id":"726d9fed-53d2-4ff0-a6ce-39c8af9b3944","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential","page_number":188,"box":{"x":219,"y":707,"width":633,"height":12}},{"id":"81110956-88b9-4e0b-a109-60ef13d7a715","block_type":"box","text":"declines in value of a portfolio security or to realize appreciation when a security that the Fund does","page_number":188,"box":{"x":116,"y":723,"width":739,"height":12}},{"id":"c3ac18d7-1105-4524-8835-57e45ff90e12","block_type":"box","text":"not own declines in value. Certain Funds have a fundamental investment restriction prohibiting short","page_number":188,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"890110ea-12a3-489c-80f6-2995cfd98d5f","block_type":"box","text":"sales of securities unless they are “against-the-box.” In a short sale “against-the-box,” at the time of the","page_number":188,"box":{"x":116,"y":754,"width":766,"height":12}},{"id":"836b4ecd-883b-44a1-9982-00186754326c","block_type":"box","text":"sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no","page_number":188,"box":{"x":116,"y":769,"width":764,"height":12}},{"id":"91c37472-ad56-4bb0-8684-7a1c1139e0b7","block_type":"box","text":"additional cost. When a Fund makes a short sale, it borrows the security sold short and delivers it to","page_number":188,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"80eb7b62-266d-499e-b6a9-07ffe5d04818","block_type":"box","text":"the broker-dealer through which it made the short sale. A Fund may have to pay a fee to borrow","page_number":188,"box":{"x":116,"y":800,"width":712,"height":12}},{"id":"16db981f-c71a-4a50-ab50-5bceba96119a","block_type":"box","text":"particular securities and is often obligated to turn over any payments received on such borrowed","page_number":188,"box":{"x":117,"y":816,"width":713,"height":12}},{"id":"dcf1b120-e6a6-4c0b-bc1f-f03f0438f56a","block_type":"box","text":"securities to the lender of the securities.","page_number":188,"box":{"x":116,"y":831,"width":301,"height":10}},{"id":"536482eb-2bf8-4e15-aaa8-6140521ab9f7","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker","page_number":188,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"1be19023-aa72-4132-9d38-f6d7c2fd376b","block_type":"box","text":"dealer, usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed.","page_number":188,"box":{"x":116,"y":878,"width":769,"height":12}},{"id":"f667d812-cfb3-4cb8-ba6a-388e666bc5bd","block_type":"box","text":"II-94","page_number":188,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ce82d66d-90d6-4650-8789-0a540c293707","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":188,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0240c926-d998-4f6b-9598-fb31fdc152a9","block_type":"box","text":"With respect to uncovered short positions, a Fund is required to deposit similar collateral with its","page_number":189,"box":{"x":116,"y":87,"width":717,"height":12}},{"id":"fc44fa60-2b2d-4539-bcce-2d7fbc433e04","block_type":"box","text":"custodian, if necessary, to the extent that the value of both collateral deposits in the aggregate is at all","page_number":189,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"805351b0-19a0-4e12-9124-7742a4c38162","block_type":"box","text":"times equal to at least 100% of the current market value of the security sold short. Depending on","page_number":189,"box":{"x":116,"y":118,"width":722,"height":12}},{"id":"b174f91a-13c4-4cb1-89cc-74dff18642c3","block_type":"box","text":"arrangements made with the broker-dealer from which the Fund borrowed the security, regarding","page_number":189,"box":{"x":116,"y":134,"width":726,"height":12}},{"id":"2078fe2f-1d56-4b46-8a5e-7e6dd8b82361","block_type":"box","text":"payment received by the Fund on such security, a Fund may not receive any payments (including","page_number":189,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"f805b0d0-afaf-4b05-82ba-d912bc9b2da9","block_type":"box","text":"interest) on its collateral deposited with such broker-dealer.","page_number":189,"box":{"x":117,"y":165,"width":443,"height":12}},{"id":"20064ea3-e09c-4467-8350-13a8082ecd1a","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated","page_number":189,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"53b4c05e-6bd7-4e90-aa74-56d87597c797","block_type":"box","text":"with those securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a","page_number":189,"box":{"x":116,"y":211,"width":755,"height":12}},{"id":"f4346598-5ccc-41ce-98b3-e28189702e1f","block_type":"box","text":"result of a short sale if the price of the security increases between the date of the short sale and the","page_number":189,"box":{"x":117,"y":227,"width":743,"height":12}},{"id":"5e5f216f-75df-4af8-a5d8-2e5234bbbae3","block_type":"box","text":"date on which the Fund replaces the borrowed security. As a result, if a Fund makes short sales in","page_number":189,"box":{"x":116,"y":242,"width":735,"height":12}},{"id":"293eb7a5-7f86-44b0-ab1b-070c1efa28b4","block_type":"box","text":"securities that increase in value, it will likely underperform similar mutual funds that do not make short","page_number":189,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"fb97851d-62d8-4fea-975e-95841939e42b","block_type":"box","text":"sales in securities. A Fund will realize a gain on a short sale if the security declines in price between","page_number":189,"box":{"x":116,"y":273,"width":746,"height":12}},{"id":"a7caf788-5136-4ab4-ba86-fb7d018edf2b","block_type":"box","text":"those dates. There can be no assurance that a Fund will be able to close out a short sale position at","page_number":189,"box":{"x":116,"y":289,"width":747,"height":12}},{"id":"17ac2648-8c53-426c-9550-3c3895c61159","block_type":"box","text":"any particular time or at an acceptable price. Although a Fund’s gain is limited to the price at which it","page_number":189,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"702d4fb6-7fbe-4780-a39b-80e9f7f93b98","block_type":"box","text":"sold the security short, its potential loss is limited only by the maximum attainable price of the security,","page_number":189,"box":{"x":116,"y":320,"width":764,"height":12}},{"id":"813be1b9-5652-41d6-ad86-1b3cf3d32170","block_type":"box","text":"less the price at which the security was sold and may, theoretically, be unlimited.","page_number":189,"box":{"x":117,"y":335,"width":603,"height":12}},{"id":"2bc9b90a-1c69-4bb0-8316-d63c3977ece4","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":189,"box":{"x":116,"y":366,"width":698,"height":12}},{"id":"c5a0eef5-1d33-425e-84cd-cac2541bc127","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short","page_number":189,"box":{"x":116,"y":397,"width":720,"height":12}},{"id":"3995cf5d-5fb7-43f1-a59e-4b5a54689504","block_type":"box","text":"sale borrowings, which are considered Derivatives Transactions under the Rule. See","page_number":189,"box":{"x":116,"y":413,"width":634,"height":12}},{"id":"0092273b-ac0b-4ce8-850b-2caad53005ce","block_type":"box","text":"“—Derivatives—Regulation of Derivatives—Rule 18f-4 under the Investment Company Act” above.","page_number":189,"box":{"x":116,"y":428,"width":738,"height":12}},{"id":"9577c4cb-20fc-4492-97aa-73d23c733914","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United","page_number":189,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"dea9e751-1021-40a5-b90f-7895b2dba753","block_type":"box","text":"Kingdom regulations (under which there are restrictions on net short sales in certain securities). If the","page_number":189,"box":{"x":117,"y":475,"width":755,"height":12}},{"id":"3ddab7cc-8492-4efe-812a-8fe3f8fcb458","block_type":"box","text":"SEC or regulatory authorities in other jurisdictions were to adopt additional restrictions regarding short","page_number":189,"box":{"x":116,"y":490,"width":761,"height":12}},{"id":"7dac141c-1699-410a-b012-bae33a42b9ab","block_type":"box","text":"sales, they could restrict a Fund’s ability to engage in short sales in certain circumstances, and the","page_number":189,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"44706edf-2188-401c-81b7-1de0d2010987","block_type":"box","text":"Fund may be unable to execute its investment strategy as a result. In response to market events, the","page_number":189,"box":{"x":117,"y":521,"width":753,"height":12}},{"id":"865463b6-4cf1-4db0-8026-ac4201dbcde0","block_type":"box","text":"SEC and regulatory authorities in other jurisdictions may adopt (and in certain cases, have adopted)","page_number":189,"box":{"x":116,"y":537,"width":747,"height":12}},{"id":"aa8bae0d-5203-4a52-9419-f81ef73a23ac","block_type":"box","text":"bans or other restrictions on short sales of certain securities or on derivatives and other hedging","page_number":189,"box":{"x":117,"y":552,"width":717,"height":12}},{"id":"42b2c3ab-45d0-4bc6-973d-d3f9407eab00","block_type":"box","text":"instruments used to achieve a similar economic effect. Such bans or other restrictions may make it","page_number":189,"box":{"x":117,"y":568,"width":736,"height":12}},{"id":"3d981265-f887-4755-af37-7708bdfc0a2d","block_type":"box","text":"impossible for a Fund to execute certain investment strategies and may have a material adverse effect","page_number":189,"box":{"x":117,"y":583,"width":765,"height":12}},{"id":"0f3b18d1-3082-4422-b0e6-ef47b297d5ef","block_type":"box","text":"on the Fund’s ability to generate returns.","page_number":189,"box":{"x":116,"y":599,"width":306,"height":12}},{"id":"afe2ce3b-ad6d-4e79-9094-ead9819cce44","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":189,"box":{"x":117,"y":630,"width":325,"height":12}},{"id":"0a3e5e96-7059-4467-ba11-f6a209637633","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other","page_number":189,"box":{"x":443,"y":630,"width":411,"height":12}},{"id":"d0cf3993-60b5-4cef-960d-cbd692728b82","block_type":"box","text":"interests issued by special purpose acquisition companies (“SPACs”) or similar special purpose entities","page_number":189,"box":{"x":117,"y":645,"width":770,"height":12}},{"id":"f69ac15f-e6c3-400f-9803-72307d3166f0","block_type":"box","text":"that pool funds to seek potential acquisition opportunities, including the “founder’s” shares and","page_number":189,"box":{"x":116,"y":661,"width":698,"height":12}},{"id":"2dfe993f-3b23-443a-94a3-ac3fb9555f63","block_type":"box","text":"warrants described below. A SPAC is a publicly traded company that raises investment capital via an","page_number":189,"box":{"x":116,"y":676,"width":749,"height":12}},{"id":"f6c2c299-e574-4f53-8c4b-5b6dae37ac7e","block_type":"box","text":"IPO for the purpose of identifying and acquiring one or more operating businesses or assets. In","page_number":189,"box":{"x":117,"y":692,"width":705,"height":12}},{"id":"017c146a-1cb4-4fe2-832e-e6de19c179f6","block_type":"box","text":"connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s” shares, generally for","page_number":189,"box":{"x":116,"y":707,"width":712,"height":12}},{"id":"8b8473fc-d7d5-4830-b538-07c3b54166c8","block_type":"box","text":"nominal consideration, and warrants that will result in the sponsors owning a specified percentage","page_number":189,"box":{"x":117,"y":723,"width":726,"height":12}},{"id":"d70c441a-f1b8-41a3-8ee6-d6a7fd7ca298","block_type":"box","text":"(typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a","page_number":189,"box":{"x":117,"y":738,"width":735,"height":12}},{"id":"e949feab-804e-4184-96f0-f80934160612","block_type":"box","text":"SPAC conducts an IPO, it has selected a management team but has not yet identified a specific","page_number":189,"box":{"x":116,"y":754,"width":713,"height":12}},{"id":"872e4461-f7a7-4e3f-a96a-485342480f29","block_type":"box","text":"acquisition opportunity. Unless and until an acquisition is completed, a SPAC generally invests its","page_number":189,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"be78b9fd-c70d-4217-b0aa-9d26af2ce320","block_type":"box","text":"assets in U.S. Government securities, money market securities and cash. If an acquisition that meets","page_number":189,"box":{"x":116,"y":785,"width":751,"height":12}},{"id":"459cfc3e-58e9-4352-9134-7e1e71d36062","block_type":"box","text":"the requirements for the SPAC is not completed within a pre-established period of time, the invested","page_number":189,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"451ac0ab-1f28-4b0f-a8a2-e5b4b15887a1","block_type":"box","text":"funds are returned to the SPAC’s public shareholders, the warrants expire, and the “founder’s” shares","page_number":189,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"39b7ecda-57d7-422d-a736-47bfb0742ad6","block_type":"box","text":"and such warrants become worthless. Because SPACs and similar entities are in essence “blank","page_number":189,"box":{"x":116,"y":831,"width":725,"height":10}},{"id":"38b1b671-1ef6-4a3c-ada5-b3fb466de003","block_type":"box","text":"check” companies without operating histories or ongoing business operations (other than identifying","page_number":189,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"55b58922-2f33-44fb-ba1c-f47146623ca2","block_type":"box","text":"and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":189,"box":{"x":116,"y":862,"width":728,"height":12}},{"id":"dbe629e8-86c5-4a79-9179-ebbd902f8232","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable","page_number":189,"box":{"x":117,"y":878,"width":751,"height":12}},{"id":"a73cd53e-cf9b-48a5-8cf1-269c4f04dfff","block_type":"box","text":"II-95","page_number":189,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ab622435-c866-4986-b54b-f9dc9981cc15","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":189,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"54036881-2100-4d9f-b37d-c2de0939eb91","block_type":"box","text":"acquisition. There is no guarantee that the SPACs in which a Fund invests will complete an acquisition","page_number":190,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"a4e6a699-4bf0-4738-885e-46d7fde1b2e5","block_type":"box","text":"or that any acquisitions completed by the SPACs in which the Fund invests will be profitable. Some","page_number":190,"box":{"x":116,"y":102,"width":740,"height":13}},{"id":"c0e5ebd7-cebd-4ec5-bb9b-a1488dc204b6","block_type":"box","text":"SPACs may pursue acquisitions only within certain industries or regions, which may ultimately lead to","page_number":190,"box":{"x":116,"y":118,"width":758,"height":12}},{"id":"67b03df6-8f3d-48ae-9c41-05d5a3254a94","block_type":"box","text":"an increase in the volatility of their prices following the acquisition. In addition, some of these securities","page_number":190,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"f7bfd071-8435-420f-b324-bae3aac077af","block_type":"box","text":"may be considered illiquid and/or subject to restrictions on resale.","page_number":190,"box":{"x":117,"y":149,"width":491,"height":12}},{"id":"34714a28-4c42-4523-86fb-4e1983740489","block_type":"box","text":"Standby Commitment Agreements.","page_number":190,"box":{"x":117,"y":180,"width":278,"height":12}},{"id":"cd35e52a-d02f-41c4-9503-08b3e2ecd7cd","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated","page_number":190,"box":{"x":396,"y":180,"width":471,"height":12}},{"id":"5c69fc55-3862-41f6-9b2d-7618e0cdcc0d","block_type":"box","text":"period of time, to purchase a stated amount of securities that may be issued and sold to that Fund at","page_number":190,"box":{"x":117,"y":196,"width":750,"height":12}},{"id":"1c64165a-2c74-4ca3-8640-509ba00ab9c9","block_type":"box","text":"the option of the issuer. The price of the security is fixed at the time of the commitment. At the time of","page_number":190,"box":{"x":116,"y":211,"width":756,"height":12}},{"id":"13053941-f2f6-4bfe-9338-e91d4d878c66","block_type":"box","text":"entering into the agreement, a Fund is paid a commitment fee, regardless of whether or not the","page_number":190,"box":{"x":116,"y":227,"width":711,"height":12}},{"id":"59e3c22e-658e-46ed-b0dc-c33a533ef165","block_type":"box","text":"security is ultimately issued. A Fund will enter into such agreements for the purpose of investing in the","page_number":190,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"01bd91c3-f817-47c9-8412-c72f08385905","block_type":"box","text":"security underlying the commitment at a price that is considered advantageous to the Fund.","page_number":190,"box":{"x":116,"y":258,"width":685,"height":12}},{"id":"9d92c4b4-6489-4628-864d-b9c0d247b6ee","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the","page_number":190,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"08338278-022d-45b0-9334-d8a515cb22af","block_type":"box","text":"value of the security, if issued, on the delivery date may be more or less than its purchase price. Since","page_number":190,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"7e5403aa-93e6-40e3-95c5-e4b989b76bef","block_type":"box","text":"the issuance of the security underlying the commitment is at the option of the issuer, the Fund may","page_number":190,"box":{"x":116,"y":320,"width":738,"height":12}},{"id":"af2155cb-4a37-4295-8d21-e3d0f3d94708","block_type":"box","text":"bear the risk of a decline in the value of such security and may not benefit from an appreciation in the","page_number":190,"box":{"x":117,"y":335,"width":756,"height":12}},{"id":"d6780ebf-3cb2-482a-b3d1-5f44a6de334b","block_type":"box","text":"value of the security during the commitment period.","page_number":190,"box":{"x":116,"y":351,"width":386,"height":12}},{"id":"485ae0f5-4a17-4f38-9796-c4f5d5fd2af2","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment","page_number":190,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"4358dccc-d0d7-453d-9cb5-fac30983eae4","block_type":"box","text":"fee will be recorded on the date on which the security can reasonably be expected to be issued, and","page_number":190,"box":{"x":116,"y":397,"width":749,"height":12}},{"id":"deeb3331-8e93-4748-b3fb-29fa4bdf3eb5","block_type":"box","text":"the value of the security thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis","page_number":190,"box":{"x":116,"y":413,"width":755,"height":12}},{"id":"54dd9148-b11e-4f29-92eb-accd1d16bffa","block_type":"box","text":"of the security will be adjusted by the amount of the commitment fee. In the event the security is not","page_number":190,"box":{"x":116,"y":428,"width":745,"height":12}},{"id":"d6efa87f-54fa-4abe-8211-dbc1ee210e29","block_type":"box","text":"issued, the commitment fee will be recorded as income on the expiration date of the standby","page_number":190,"box":{"x":117,"y":444,"width":690,"height":12}},{"id":"61146862-077f-4482-899b-1969d4b5c691","block_type":"box","text":"commitment.","page_number":190,"box":{"x":116,"y":459,"width":101,"height":10}},{"id":"421e0d63-c524-4b35-a661-8f1143b0d869","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the","page_number":190,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"bebb5e13-749e-4f42-aab8-38a5ff02bb7a","block_type":"box","text":"Manager’s or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby","page_number":190,"box":{"x":117,"y":506,"width":693,"height":12}},{"id":"4bda91fa-4856-43e7-a51e-8d6e27fc47ec","block_type":"box","text":"commitments solely to facilitate portfolio liquidity and not to exercise its rights thereunder for trading","page_number":190,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"7fe05a7e-ce4d-4d19-93d0-2b8b1dee64a5","block_type":"box","text":"purposes. Standby commitments will be valued at zero in determining NAV. Accordingly, where a Fund","page_number":190,"box":{"x":117,"y":537,"width":769,"height":12}},{"id":"db253104-2eea-4886-9e92-a2625d73900d","block_type":"box","text":"pays directly or indirectly for a standby commitment, its cost will be reflected as an unrealized loss for","page_number":190,"box":{"x":117,"y":552,"width":756,"height":12}},{"id":"0461592b-969a-4ba0-a4bc-81441ac47858","block_type":"box","text":"the period during which the commitment is held by such Fund and will be reflected as a realized gain or","page_number":190,"box":{"x":116,"y":568,"width":771,"height":12}},{"id":"8ea54851-9861-4173-9b67-05cd75ed6b10","block_type":"box","text":"loss when the commitment is exercised or expires.","page_number":190,"box":{"x":117,"y":583,"width":380,"height":12}},{"id":"ff9a3ae7-e389-43e8-8a18-460da08d117f","block_type":"box","text":"Stripped Securities.","page_number":190,"box":{"x":117,"y":614,"width":156,"height":12}},{"id":"54f09ef4-d901-40ac-a226-76999c6f32aa","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and","page_number":190,"box":{"x":274,"y":614,"width":560,"height":12}},{"id":"13a33c77-1e33-4b86-aae3-f1391f068b0e","block_type":"box","text":"principal components of an instrument and sells them as separate securities. In general, one security is","page_number":190,"box":{"x":117,"y":630,"width":771,"height":12}},{"id":"1dd14c0d-f046-41eb-8147-6106842fea8c","block_type":"box","text":"entitled to receive the interest payments on the underlying assets (the interest only or “IO” security)","page_number":190,"box":{"x":116,"y":645,"width":740,"height":12}},{"id":"d7155bdd-6fc0-43e8-9d59-fab8fc5173ed","block_type":"box","text":"and the other to receive the principal payments (the principal only or “PO” security). Some stripped","page_number":190,"box":{"x":116,"y":661,"width":731,"height":12}},{"id":"1cb92e0a-51ea-440c-9991-57158983eedd","block_type":"box","text":"securities may receive a combination of interest and principal payments. The yields to maturity on IOs","page_number":190,"box":{"x":116,"y":676,"width":755,"height":12}},{"id":"1ee8cc30-f6d1-4143-bd21-214d7e1442b7","block_type":"box","text":"and POs are sensitive to the expected or anticipated rate of principal payments (including","page_number":190,"box":{"x":116,"y":692,"width":663,"height":12}},{"id":"51c967f0-3d54-4315-9bf7-5d53ca77b516","block_type":"box","text":"prepayments) on the related underlying assets, and principal payments may have a material effect on","page_number":190,"box":{"x":117,"y":707,"width":752,"height":12}},{"id":"bd814102-42e9-4960-b162-09c66f45e349","block_type":"box","text":"yield to maturity. If the underlying assets experience greater than anticipated prepayments of principal,","page_number":190,"box":{"x":116,"y":723,"width":760,"height":12}},{"id":"bcb7f8fb-73cb-4ac2-b1e5-1a8eb7972d74","block_type":"box","text":"a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets","page_number":190,"box":{"x":116,"y":738,"width":681,"height":12}},{"id":"bfa9bc4f-44aa-496b-ac0a-4a81b62b4d37","block_type":"box","text":"experience less than anticipated prepayments of principal, the yield on POs could be adversely","page_number":190,"box":{"x":116,"y":754,"width":706,"height":12}},{"id":"f365b7fa-d9b4-48c9-90cc-d7e83663f274","block_type":"box","text":"affected. Stripped securities may be highly sensitive to changes in interest rates and rates of","page_number":190,"box":{"x":116,"y":769,"width":687,"height":12}},{"id":"75a977ad-da4d-4d53-acc4-ebc6578e0f8b","block_type":"box","text":"prepayment.","page_number":190,"box":{"x":117,"y":785,"width":91,"height":12}},{"id":"137ad568-c129-4eea-b637-c40517cf7008","block_type":"box","text":"Structured Notes.","page_number":190,"box":{"x":117,"y":816,"width":139,"height":9}},{"id":"c31848ed-137c-4f66-9467-d929f6deb70f","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally","page_number":190,"box":{"x":262,"y":816,"width":612,"height":12}},{"id":"d568db6d-434a-4c55-8ef8-b474c7bc0d4f","block_type":"box","text":"privately negotiated debt obligations where the principal and/or interest is determined by reference to","page_number":190,"box":{"x":117,"y":831,"width":753,"height":12}},{"id":"70623407-83e1-4f7d-9de8-90b3f88c2d1d","block_type":"box","text":"the performance of a specific asset, benchmark asset, market or interest rate (“reference measure”).","page_number":190,"box":{"x":116,"y":847,"width":751,"height":12}},{"id":"87ea606c-3b96-46c1-87ec-23c0b2204d3f","block_type":"box","text":"Issuers of structured notes generally include corporations and banks. The interest rate or the principal","page_number":190,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"e8edd9b2-02d5-44bb-bc88-c1f42c62407b","block_type":"box","text":"amount payable upon maturity or redemption may increase or decrease, depending upon changes in","page_number":190,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"8a03717d-16a9-4df9-b11e-fdff2f220692","block_type":"box","text":"II-96","page_number":190,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"85842404-c44c-4f8a-b031-9f4bda5c36ad","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":190,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c609e886-0e58-480a-89c9-05823218452d","block_type":"box","text":"the value of the reference measure. The terms of a structured note may provide that, in certain","page_number":191,"box":{"x":116,"y":87,"width":708,"height":12}},{"id":"d88b4901-6a5e-420d-8373-d90f16f077b4","block_type":"box","text":"circumstances, no principal is due at maturity and, therefore, may result in a loss of invested capital by","page_number":191,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"ee4f1abf-d7d6-4ae2-8662-9a9e63f4b799","block_type":"box","text":"a Fund. The interest and/or principal payments that may be made on a structured product may vary","page_number":191,"box":{"x":116,"y":118,"width":743,"height":12}},{"id":"21a6dce5-d939-41eb-80ba-353bd172a896","block_type":"box","text":"widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":191,"box":{"x":116,"y":134,"width":671,"height":12}},{"id":"aa94507a-6551-49f9-bcf0-0f36039d0d11","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure","page_number":191,"box":{"x":116,"y":165,"width":770,"height":12}},{"id":"0f9cadc9-20de-42f1-866e-9ab3f46a513f","block_type":"box","text":"may produce an increase or a decrease in the interest rate or the value of the principal at maturity. The","page_number":191,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"e14ee49f-f7b3-4c5e-a34e-ced031150d08","block_type":"box","text":"rate of return on structured notes may be determined by applying a multiplier to the performance or","page_number":191,"box":{"x":117,"y":196,"width":739,"height":12}},{"id":"991d7451-33f7-43fb-af6a-3428849278dd","block_type":"box","text":"differential performance of reference measures. Application of a multiplier involves leverage that will","page_number":191,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"dfcf0066-fdf5-48d5-8284-7543eb9da561","block_type":"box","text":"serve to magnify the potential for gain and the risk of loss.","page_number":191,"box":{"x":116,"y":227,"width":435,"height":12}},{"id":"0d55a8b5-6cf3-4426-8b1b-9ece9b899bcc","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured","page_number":191,"box":{"x":116,"y":258,"width":722,"height":11}},{"id":"1fdc9ddb-aa73-405b-98bf-eed6ef803702","block_type":"box","text":"product. Structured notes may also be more volatile, less liquid, and more difficult to price accurately","page_number":191,"box":{"x":117,"y":273,"width":750,"height":12}},{"id":"27355e03-4560-4560-b2a1-2a81456c198b","block_type":"box","text":"than less complex securities and instruments or more traditional debt securities. The secondary market","page_number":191,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"c212b5a6-77b3-471b-ac0d-178b70c00c04","block_type":"box","text":"for structured notes could be illiquid making them difficult to sell when the Fund determines to sell","page_number":191,"box":{"x":116,"y":304,"width":729,"height":12}},{"id":"8aaecf04-038b-4535-b5b6-04af525f5c8c","block_type":"box","text":"them. The possible lack of a liquid secondary market for structured notes and the resulting inability of","page_number":191,"box":{"x":116,"y":320,"width":755,"height":12}},{"id":"7e3b149d-988b-451c-b484-1348fbb9d1cd","block_type":"box","text":"the Fund to sell a structured note could expose the Fund to losses and could make structured notes","page_number":191,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"d50e0802-8cb0-4a52-a4c2-0cfc6ae29b68","block_type":"box","text":"more difficult for the Fund to value accurately.","page_number":191,"box":{"x":117,"y":351,"width":344,"height":12}},{"id":"bcff9ddc-694d-4f41-b50f-d67d214264e4","block_type":"box","text":"Taxability Risk.","page_number":191,"box":{"x":118,"y":382,"width":119,"height":12}},{"id":"9ee1125e-ab8e-4a62-a642-578d6e25ddf4","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to","page_number":191,"box":{"x":238,"y":382,"width":555,"height":12}},{"id":"6f21d33f-8491-4f12-a685-d6626a8f8457","block_type":"box","text":"shareholders by investing in tax-exempt or municipal securities in reliance at the time of purchase on","page_number":191,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"b654960e-ff72-4c4e-837f-25712e79e9e3","block_type":"box","text":"an opinion of bond counsel to the issuer and, in the case of derivative securities, sponsors’ counsel,","page_number":191,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"a74ad4a5-dec6-494a-a3ea-911bb2ab2e40","block_type":"box","text":"that the interest paid on those securities will be excludable from gross income for U.S. federal income","page_number":191,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"47ceae07-1eb9-4c2b-b4e0-c9815a653fc3","block_type":"box","text":"tax purposes. Such securities, however, may be determined to pay, or have paid, taxable income","page_number":191,"box":{"x":116,"y":444,"width":726,"height":12}},{"id":"3bd5a8df-292e-4fcc-b0f0-92538c8b4db2","block_type":"box","text":"subsequent to the Fund’s acquisition of the securities. In that event, the IRS may demand that the","page_number":191,"box":{"x":116,"y":459,"width":731,"height":12}},{"id":"93202b9f-f8d9-4b01-8fb2-28aa01c4a5a3","block_type":"box","text":"Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to do so,","page_number":191,"box":{"x":117,"y":475,"width":758,"height":12}},{"id":"4a94fc4b-9b6b-4d32-9c0a-9d661e78e1a9","block_type":"box","text":"the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or","page_number":191,"box":{"x":116,"y":490,"width":758,"height":12}},{"id":"a7d9c253-e1de-48b8-84e3-0f3bf382d615","block_type":"box","text":"to be paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the","page_number":191,"box":{"x":116,"y":506,"width":724,"height":12}},{"id":"e4be0950-096a-415d-bdba-232d57697b27","block_type":"box","text":"Fund’s shareholders to increased U.S. federal income tax liabilities. If the interest paid on any","page_number":191,"box":{"x":117,"y":521,"width":699,"height":12}},{"id":"099e077c-a2f5-4d6e-8327-b08f76ca44fa","block_type":"box","text":"tax-exempt or municipal security held by the Fund is subsequently determined to be taxable, the Fund","page_number":191,"box":{"x":116,"y":537,"width":762,"height":12}},{"id":"da8d8999-78aa-44f3-a482-302538785ce4","block_type":"box","text":"will dispose of that security as soon as reasonably practicable. In addition, future laws, regulations,","page_number":191,"box":{"x":116,"y":552,"width":738,"height":12}},{"id":"61d4682a-ecce-4e90-8604-b6be1d053cf5","block_type":"box","text":"rulings or court decisions may cause interest on municipal securities to be subject, directly or indirectly,","page_number":191,"box":{"x":117,"y":568,"width":769,"height":12}},{"id":"8f839bae-dd44-4c3a-afc7-4a5dea988058","block_type":"box","text":"to U.S. federal income taxation or interest on state municipal securities to be subject to state or local","page_number":191,"box":{"x":116,"y":583,"width":749,"height":12}},{"id":"b12e34c9-7160-4244-b933-370a7258f73c","block_type":"box","text":"income taxation, or the value of state municipal securities to be subject to state or local intangible","page_number":191,"box":{"x":117,"y":599,"width":726,"height":12}},{"id":"0fc989d6-c1f5-494f-8d93-f724a4ad94dd","block_type":"box","text":"personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":191,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"2de213a3-7bfe-437d-8bab-f3862d1415bf","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such","page_number":191,"box":{"x":116,"y":630,"width":721,"height":12}},{"id":"8bebb8ca-3dbd-4b45-9bb0-6ee555e7fe5a","block_type":"box","text":"securities, and thus the value of an investment in the Fund.","page_number":191,"box":{"x":116,"y":645,"width":444,"height":11}},{"id":"3d6d6a50-5f5d-48be-8458-460588f0f13d","block_type":"box","text":"Temporary Defensive Measures.","page_number":191,"box":{"x":118,"y":676,"width":252,"height":12}},{"id":"d9fe3586-0107-4102-bc42-28411dd67958","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse","page_number":191,"box":{"x":376,"y":676,"width":498,"height":12}},{"id":"de1152d2-81fd-4f1b-a469-e8e8ceec770b","block_type":"box","text":"market, economic, political or other conditions, a Fund may depart from its principal investment","page_number":191,"box":{"x":117,"y":692,"width":697,"height":12}},{"id":"36bac0b2-9d4a-4209-a1a1-2266c448c215","block_type":"box","text":"strategies and may invest without limitation in cash, high quality money market instruments, or other","page_number":191,"box":{"x":116,"y":707,"width":735,"height":12}},{"id":"df15b301-caee-42a5-80eb-2ecc9bb665f8","block_type":"box","text":"short term investments. Certain Funds may also invest in cash and other such instruments pending","page_number":191,"box":{"x":116,"y":723,"width":727,"height":12}},{"id":"446a8f5d-7af9-4876-91a2-804ad8954cb5","block_type":"box","text":"investment or to meet anticipated redemption requests. High quality money market instruments include","page_number":191,"box":{"x":117,"y":738,"width":755,"height":12}},{"id":"4d9af0f2-81e1-43ca-b6d1-09ec275f0085","block_type":"box","text":"U.S. Government obligations, U.S. Government agency obligations, dollar denominated obligations of","page_number":191,"box":{"x":117,"y":754,"width":746,"height":12}},{"id":"dfb59aa7-78b9-44ae-ba20-b52547698405","block_type":"box","text":"foreign issuers, bank obligations, including U.S. subsidiaries and branches of foreign banks, corporate","page_number":191,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"ce2446f0-c505-46c8-a233-b3e9ffffcc38","block_type":"box","text":"obligations, commercial paper, repurchase agreements and obligations of supranational organizations.","page_number":191,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"98d43f88-61d7-46d4-acff-7701935b2ddc","block_type":"box","text":"Generally, such obligations will mature within one year from the date of settlement, but may mature","page_number":191,"box":{"x":117,"y":800,"width":727,"height":12}},{"id":"59eea935-2ec3-4c6e-af01-17bee35dae88","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability","page_number":191,"box":{"x":116,"y":816,"width":762,"height":12}},{"id":"d484e228-81e5-4fc7-86a5-696c5637b7d0","block_type":"box","text":"to achieve its investment objective.","page_number":191,"box":{"x":116,"y":831,"width":262,"height":12}},{"id":"d29e500e-c627-4326-8a85-de8b48e41af5","block_type":"box","text":"U.S. Government Obligations.","page_number":191,"box":{"x":117,"y":862,"width":236,"height":12}},{"id":"7a53d5d2-98e3-49df-ad68-24aa17feccc3","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S.","page_number":191,"box":{"x":354,"y":862,"width":510,"height":12}},{"id":"4e2fd21b-35db-4250-aff3-c381920b1ef5","block_type":"box","text":"Government and U.S. Government agencies and instrumentalities. Obligations of certain agencies and","page_number":191,"box":{"x":117,"y":878,"width":767,"height":12}},{"id":"43e67b57-3582-4a33-b0ff-d17f3a157726","block_type":"box","text":"II-97","page_number":191,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9f63d94f-68dd-4e98-887b-7d22ac1ba041","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":191,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5907ea5f-03d5-40db-9ec2-13974e662a5e","block_type":"box","text":"instrumentalities of the U.S. Government are supported by the full faith and credit of the U.S. Treasury.","page_number":192,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"f3c76ba0-67c2-411d-8975-63061643c423","block_type":"box","text":"Others are supported by the right of the issuer to borrow from the U.S. Treasury; and still others are","page_number":192,"box":{"x":116,"y":102,"width":745,"height":13}},{"id":"55cda066-378d-4f78-b583-bb85aa8543f7","block_type":"box","text":"supported only by the credit of the agency or instrumentality issuing the obligation. No assurance can","page_number":192,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"48671b31-c2ea-4e57-a2bf-3b4ef3fd3af5","block_type":"box","text":"be given that the U.S. Government will provide financial support to U.S. Government-sponsored","page_number":192,"box":{"x":117,"y":134,"width":715,"height":12}},{"id":"8c81e272-c409-4fab-8633-c6af420ac115","block_type":"box","text":"instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury and agency securities may","page_number":192,"box":{"x":117,"y":149,"width":762,"height":12}},{"id":"7277d274-d74e-418f-8a56-116946809807","block_type":"box","text":"be held by trusts that issue participation certificates (such as Treasury income growth receipts and","page_number":192,"box":{"x":117,"y":165,"width":734,"height":12}},{"id":"073b4df3-8513-463a-b5ba-9da7d4b0d9ae","block_type":"box","text":"certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":192,"box":{"x":116,"y":180,"width":740,"height":12}},{"id":"8f7f1f7d-9289-4880-88aa-8791332156aa","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or","page_number":192,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"bec536c9-4935-44dc-9f1d-9541f18abd80","block_type":"box","text":"the future principal payments on U.S. Government obligations. These instruments are issued at a","page_number":192,"box":{"x":116,"y":211,"width":727,"height":12}},{"id":"fae3ab4a-74c0-4936-8d3a-cb8699fbbf1b","block_type":"box","text":"discount to their “face value” and may (particularly in the case of stripped mortgage-backed securities)","page_number":192,"box":{"x":116,"y":227,"width":763,"height":12}},{"id":"6af82f68-efc4-417d-8e63-1cc158d6be03","block_type":"box","text":"exhibit greater price volatility than ordinary debt securities because of the manner in which their","page_number":192,"box":{"x":116,"y":242,"width":713,"height":12}},{"id":"efe5167f-f2ba-4dcb-9cd9-2a9a2aef86bb","block_type":"box","text":"principal and interest are returned to investors.","page_number":192,"box":{"x":117,"y":258,"width":351,"height":11}},{"id":"d8b48c56-6802-4267-80c5-dd760bf03803","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S.","page_number":192,"box":{"x":117,"y":289,"width":734,"height":12}},{"id":"d3420a5d-d146-45da-90cb-0b0985a28ba5","block_type":"box","text":"Treasury Bills, Treasury Notes and Treasury Bonds and the obligations of the Federal Housing","page_number":192,"box":{"x":116,"y":304,"width":708,"height":12}},{"id":"3295485e-55c6-44ed-b278-bcb2a9e24308","block_type":"box","text":"Administration, Farmers Home Administration, Export-Import Bank of the United States, Small","page_number":192,"box":{"x":116,"y":320,"width":703,"height":12}},{"id":"572350b5-2b3f-48ac-b2ca-9a3756918b0e","block_type":"box","text":"Business Administration, Ginnie Mae, Fannie Mae, Federal Financing Bank, General Services","page_number":192,"box":{"x":117,"y":335,"width":702,"height":12}},{"id":"2cc1a67a-c5d5-4f11-addf-0be26fd9ce09","block_type":"box","text":"Administration, Student Loan Marketing Association, Central Bank for Cooperatives, Federal Home","page_number":192,"box":{"x":116,"y":351,"width":741,"height":12}},{"id":"615f09c4-c490-45de-a522-87d7cea76868","block_type":"box","text":"Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm Credit Banks","page_number":192,"box":{"x":117,"y":366,"width":771,"height":11}},{"id":"1103569e-e357-4bfa-9033-ee497d0f8b38","block_type":"box","text":"System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":192,"box":{"x":116,"y":382,"width":772,"height":12}},{"id":"854f4cb5-cf83-4f1d-9489-e6136a5d5cbd","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government","page_number":192,"box":{"x":117,"y":397,"width":717,"height":12}},{"id":"181ca2d8-ed4e-4261-97a4-fff8a953af6d","block_type":"box","text":"agencies and instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae","page_number":192,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"e98c7bdd-d4b2-444b-b702-9ced2ee76f64","block_type":"box","text":"and Freddie Mac.","page_number":192,"box":{"x":116,"y":428,"width":135,"height":10}},{"id":"ad2e2c70-1ad8-431f-9f4e-e8979d8166e2","block_type":"box","text":"U.S. Treasury Obligations.","page_number":192,"box":{"x":117,"y":459,"width":194,"height":12}},{"id":"44c0e24c-4443-4ad0-b2a7-c717366aa5e9","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of","page_number":192,"box":{"x":313,"y":459,"width":548,"height":12}},{"id":"5f6822d2-4da3-437d-b6d2-04d136ea9a0a","block_type":"box","text":"issuance and other characteristics. Obligations of U.S. Government agencies and authorities are","page_number":192,"box":{"x":117,"y":475,"width":721,"height":12}},{"id":"624752df-39d6-4a04-a03a-93afdf0d2d3e","block_type":"box","text":"supported by varying degrees of credit but generally are not backed by the full faith and credit of the","page_number":192,"box":{"x":116,"y":490,"width":747,"height":12}},{"id":"711301c5-03e3-44af-b997-5c97cbb725cb","block_type":"box","text":"U.S. Government. No assurance can be given that the U.S. Government will provide financial support","page_number":192,"box":{"x":117,"y":506,"width":758,"height":12}},{"id":"47d9ae70-89c3-414c-8c19-51f06860f4f5","block_type":"box","text":"to its agencies and authorities if it is not obligated by law to do so.","page_number":192,"box":{"x":116,"y":521,"width":493,"height":12}},{"id":"20c546d9-105e-4ada-b337-c2689afb7790","block_type":"box","text":"U.S. Treasury Rolls.","page_number":192,"box":{"x":117,"y":552,"width":153,"height":12}},{"id":"2207af7c-31d2-4258-b4a1-de00b4b90afa","block_type":"box","text":"Certain Funds may invest in U.S. Treasury","page_number":192,"box":{"x":271,"y":552,"width":320,"height":12}},{"id":"cfeafc90-0b3a-4ec0-9fa7-975da55449ad","block_type":"box","text":"rolls. In a U.S. Treasury roll transaction,","page_number":192,"box":{"x":592,"y":552,"width":292,"height":12}},{"id":"f2b84012-8def-4109-a95d-88c760f8d2c3","block_type":"box","text":"the Fund sells a treasury security to a counterpa","page_number":192,"box":{"x":116,"y":568,"width":350,"height":12}},{"id":"3217936e-d166-4740-93e4-c86fbe58cceb","block_type":"box","text":"rty with a simultaneous agreement to repurchase the","page_number":192,"box":{"x":468,"y":568,"width":387,"height":12}},{"id":"8e7424f8-3f14-4116-88e1-e532d8157a7b","block_type":"box","text":"same security at an agreed upon price and future settl","page_number":192,"box":{"x":116,"y":583,"width":392,"height":12}},{"id":"4818a2f8-076c-41cb-b54c-1f279252d2d2","block_type":"box","text":"ement date. U.S. Treasury roll transactions may","page_number":192,"box":{"x":510,"y":583,"width":353,"height":12}},{"id":"3649120e-b72f-48e8-aa5f-3697d7e0b797","block_type":"box","text":"incrementally adjust the average maturity of a Fund’","page_number":192,"box":{"x":117,"y":599,"width":376,"height":12}},{"id":"e7ab8ca7-89a0-4ab3-b332-3444e03c4473","block_type":"box","text":"s portfolio and increase the interest yield on the","page_number":192,"box":{"x":494,"y":599,"width":348,"height":12}},{"id":"b69bcab5-6dcf-41f2-8169-138d17eda014","block_type":"box","text":"Fund’s portfolio by extending the average maturity of the portfolio in a normal yield curve environment.","page_number":192,"box":{"x":117,"y":614,"width":746,"height":12}},{"id":"fd1556ef-c77c-4b05-80ed-10907bb0cf8f","block_type":"box","text":"During the period before the settlement","page_number":192,"box":{"x":117,"y":630,"width":284,"height":12}},{"id":"9c1378d8-ef41-46e2-876f-868f98d3bafb","block_type":"box","text":"date of a U.S. Treasury roll, a","page_number":192,"box":{"x":401,"y":630,"width":224,"height":12}},{"id":"31cf89cf-b68a-4a24-b1cb-0135fb7aee6e","block_type":"box","text":"Fund continues to earn interest on","page_number":192,"box":{"x":626,"y":630,"width":254,"height":9}},{"id":"e028cd47-2f99-414a-8ba5-63c505c54b81","block_type":"box","text":"the securities it is selling; however, it does not earn in","page_number":192,"box":{"x":116,"y":645,"width":387,"height":12}},{"id":"2e063611-e74a-4461-bddc-9cb42d1495fd","block_type":"box","text":"terest on the securities it is purchasing until after the","page_number":192,"box":{"x":504,"y":645,"width":383,"height":12}},{"id":"888170c4-f953-4b5d-8c83-65b15d094021","block_type":"box","text":"settlement date. A Fund could suffer an opportunity loss","page_number":192,"box":{"x":116,"y":661,"width":406,"height":12}},{"id":"acc82865-42e9-4ed7-b80f-b6e71b5be6ff","block_type":"box","text":"if the counterparty to the U.S. Treasury roll","page_number":192,"box":{"x":528,"y":661,"width":308,"height":12}},{"id":"d58d7b4f-1efd-4964-b4db-4e095f40ea00","block_type":"box","text":"transaction failed to perform its obligations on the settlement date.","page_number":192,"box":{"x":116,"y":676,"width":478,"height":12}},{"id":"e7ad823e-d756-446a-b7e6-33c7a2b0ab86","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed","page_number":192,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"028a7899-4b96-4594-b066-7df067ea93fc","block_type":"box","text":"upon purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be","page_number":192,"box":{"x":117,"y":723,"width":732,"height":12}},{"id":"868826c9-a83c-4340-a95c-aaf3056b759b","block_type":"box","text":"deemed to involve leverage. There is no assurance that U.S. Treasury rolls can be successfully","page_number":192,"box":{"x":116,"y":738,"width":709,"height":12}},{"id":"9b5553e5-b416-47d5-8f35-1c99f114e3e7","block_type":"box","text":"employed.","page_number":192,"box":{"x":116,"y":754,"width":76,"height":12}},{"id":"349c66ae-0e90-4719-8352-e85b3b9d2dd5","block_type":"box","text":"Utility Industries.","page_number":192,"box":{"x":117,"y":785,"width":134,"height":12}},{"id":"8cad2724-957d-4300-a408-5007c11de631","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an","page_number":192,"box":{"x":259,"y":785,"width":566,"height":12}},{"id":"b28027f8-1318-4c20-8526-6043f0bf04ca","block_type":"box","text":"adequate return on invested capital, difficulty in financing large construction programs during an","page_number":192,"box":{"x":116,"y":800,"width":710,"height":12}},{"id":"bb7060fe-49bb-4986-a189-d11c86510ab0","block_type":"box","text":"inflationary period, restrictions on operations and increased cost and delays attributable to","page_number":192,"box":{"x":117,"y":816,"width":667,"height":12}},{"id":"a5bd0c11-3c15-46dc-8f9a-63f2f31aece7","block_type":"box","text":"environmental considerations and regulation, difficulty in raising capital in adequate amounts on","page_number":192,"box":{"x":116,"y":831,"width":715,"height":12}},{"id":"aee38ae0-13b5-41a9-970d-4b9fb8c6278f","block_type":"box","text":"reasonable terms in periods of high inflation and unsettled capital markets, technological innovations","page_number":192,"box":{"x":117,"y":847,"width":750,"height":12}},{"id":"064005a2-fbce-4293-b84c-9f68f86562e1","block_type":"box","text":"that may render existing plants, equipment or products obsolete, the potential impact of natural or","page_number":192,"box":{"x":116,"y":862,"width":729,"height":12}},{"id":"2f0d19b1-862a-449c-8a4e-9daca8415b23","block_type":"box","text":"man-made disasters, increased costs and reduced availability of certain types of fuel, occasional","page_number":192,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"394251be-0750-4850-8c30-26b82646c958","block_type":"box","text":"II-98","page_number":192,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"dde32c81-cef9-4cd6-bcaa-eed81026c38f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":192,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"89df287f-4898-477e-b020-70b137a1a11d","block_type":"box","text":"reduced availability and high costs of natural gas for resale, the effects of energy conservation, the","page_number":193,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"8cef8441-8336-4a7b-a08b-7bf68394cc07","block_type":"box","text":"effects of a national energy policy and lengthy delays and greatly increased costs and other problems","page_number":193,"box":{"x":116,"y":102,"width":759,"height":13}},{"id":"47139eb4-4a09-4169-956d-8700fa9fea66","block_type":"box","text":"associated with the design, construction, licensing, regulation and operation of nuclear facilities for","page_number":193,"box":{"x":116,"y":118,"width":735,"height":12}},{"id":"6f07b176-9764-4211-a594-87b94ca3bcf4","block_type":"box","text":"electric generation, including, among other considerations, the problems associated with the use of","page_number":193,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"d40a127c-a38d-47c1-bf5a-d760dbfb0085","block_type":"box","text":"radioactive materials and the disposal of radioactive wastes. There are substantial differences among","page_number":193,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"7d8b7db0-798a-47e8-8911-817806f794cb","block_type":"box","text":"the regulatory practices and policies of various jurisdictions, and any given regulatory agency may","page_number":193,"box":{"x":116,"y":165,"width":732,"height":12}},{"id":"0f661071-1b7f-4235-ad52-d40ede9b390c","block_type":"box","text":"make major shifts in policy from time to time. There is no assurance that regulatory authorities will, in","page_number":193,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"c94942f7-284e-46c7-a8fa-2e0a698fac85","block_type":"box","text":"the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":193,"box":{"x":116,"y":196,"width":716,"height":12}},{"id":"8a4d0a43-0a88-4cf4-80a1-e02213cfe4ab","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future","page_number":193,"box":{"x":116,"y":211,"width":735,"height":12}},{"id":"b26bb85e-7638-425f-a5b7-c6a97ebcbf74","block_type":"box","text":"regulatory legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the","page_number":193,"box":{"x":117,"y":227,"width":771,"height":12}},{"id":"76c09e5a-8f43-45a7-bf88-92bcd2184c1d","block_type":"box","text":"issuers of securities held in the Fund’s portfolio may own or operate nuclear generating facilities.","page_number":193,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"5a3fdea4-d934-4aa1-add3-8a453efd8cad","block_type":"box","text":"Governmental authorities may from time to time review existing policies and impose additional","page_number":193,"box":{"x":117,"y":258,"width":702,"height":12}},{"id":"31b34239-6ad6-43c8-bc70-b91acbfa7a16","block_type":"box","text":"requirements governing the licensing, construction and operation of nuclear power plants. Prolonged","page_number":193,"box":{"x":117,"y":273,"width":751,"height":12}},{"id":"30f7e248-741f-4411-930f-14d1c7b6ed00","block_type":"box","text":"changes in climatic conditions can also have a significant impact on both the revenues of an electric","page_number":193,"box":{"x":116,"y":289,"width":746,"height":12}},{"id":"9fa0c5a8-5cef-469e-a7ff-f191ed79b742","block_type":"box","text":"and gas utility as well as the expenses of a utility, particularly a hydro-based electric utility.","page_number":193,"box":{"x":116,"y":304,"width":675,"height":12}},{"id":"94ef4ddb-e095-43c1-87c4-c305990df431","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic","page_number":193,"box":{"x":117,"y":335,"width":747,"height":12}},{"id":"e4a76a8b-6a8f-45a0-b231-99c294d09920","block_type":"box","text":"and international competition, and governmental limitations on rates charged to customers. The value","page_number":193,"box":{"x":116,"y":351,"width":759,"height":12}},{"id":"de31b86b-60c0-459a-9b22-537f8a2e63bb","block_type":"box","text":"of regulated utility debt securities and, to a lesser extent, equity securities, tends to have an inverse","page_number":193,"box":{"x":116,"y":366,"width":743,"height":12}},{"id":"e192e74f-1e81-4f42-a5f6-e626c272eb35","block_type":"box","text":"relationship to the movement of interest rates and therefore may lead to volatility in performance.","page_number":193,"box":{"x":117,"y":382,"width":723,"height":12}},{"id":"51651c84-0190-4d43-9aaa-7bde13e812f9","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the","page_number":193,"box":{"x":117,"y":413,"width":771,"height":12}},{"id":"d34f9929-adfc-4dc1-9659-b04a7c782f4a","block_type":"box","text":"United States, most utility companies are regulated by state and/or federal authorities. Such regulation","page_number":193,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"cd81d937-e463-4dbc-9acb-49e2fc9e9c3c","block_type":"box","text":"is intended to ensure appropriate standards of service and adequate capacity to meet public demand.","page_number":193,"box":{"x":117,"y":444,"width":759,"height":12}},{"id":"9dac78db-9457-41d6-9c95-93e39aec9216","block_type":"box","text":"Generally, prices are also regulated in the United States and in foreign countries with the intention of","page_number":193,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"0201351d-4a26-4537-8205-9b0081eb32c9","block_type":"box","text":"protecting the public while ensuring that the rate of return earned by utility companies is sufficient to","page_number":193,"box":{"x":117,"y":475,"width":744,"height":12}},{"id":"5a63ec48-24d1-4eee-94b9-b3f58db94543","block_type":"box","text":"allow them to attract capital in order to grow and continue to provide appropriate services. There can","page_number":193,"box":{"x":116,"y":490,"width":751,"height":12}},{"id":"700c0be7-c160-48c4-bbfa-b0f97c6cf098","block_type":"box","text":"be no assurance that such pricing policies or rates of return will continue in the future.","page_number":193,"box":{"x":117,"y":506,"width":640,"height":12}},{"id":"94db2b69-7abc-4230-a85b-c536bda69902","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in","page_number":193,"box":{"x":116,"y":537,"width":738,"height":12}},{"id":"400c8e55-170d-4959-ab3d-9d9100985f7c","block_type":"box","text":"foreign countries. In recent years, changes in regulation in the United States increasingly have allowed","page_number":193,"box":{"x":116,"y":552,"width":767,"height":12}},{"id":"8c518ff3-3316-423b-9a1c-8b5027ef25cf","block_type":"box","text":"utility companies to provide services and products outside their traditional geographic areas and lines","page_number":193,"box":{"x":117,"y":568,"width":755,"height":12}},{"id":"e79bc070-3413-4f70-9d86-a6f14ec70909","block_type":"box","text":"of business, creating new areas of competition within the industries. In some instances, utility","page_number":193,"box":{"x":116,"y":583,"width":696,"height":12}},{"id":"0aaa9a0e-553b-431a-83f3-78dbbd65ac0e","block_type":"box","text":"companies are operating on an unregulated basis. Because of trends toward deregulation and the","page_number":193,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"ba2f8719-c818-4f5f-a511-de24439051bd","block_type":"box","text":"evolution of independent power producers as well as new entrants to the field of telecommunications,","page_number":193,"box":{"x":116,"y":614,"width":757,"height":12}},{"id":"2b82e8be-242c-46d1-8d19-3c821464d30a","block_type":"box","text":"non-regulated providers of utility services have become a significant part of their respective industries.","page_number":193,"box":{"x":117,"y":630,"width":761,"height":12}},{"id":"22b049a7-36b9-46a6-9012-3bfb3d209483","block_type":"box","text":"The Manager believes that the emergence of competition and deregulation will result in certain utility","page_number":193,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"30fd2894-ef3a-4e25-8874-ae5335479e12","block_type":"box","text":"companies being able to earn more than their traditional regulated rates of return, while others may be","page_number":193,"box":{"x":116,"y":661,"width":759,"height":12}},{"id":"bed6c978-3f30-4ea1-ac28-b5c6ce78b99f","block_type":"box","text":"forced to defend their core business from increased competition and may be less profitable. Reduced","page_number":193,"box":{"x":116,"y":676,"width":751,"height":12}},{"id":"0c97b61b-101a-4cbc-ab3c-bb00246947ae","block_type":"box","text":"profitability, as well as new uses of funds (such as for expansion, operations or stock buybacks) could","page_number":193,"box":{"x":117,"y":692,"width":754,"height":12}},{"id":"8fa314ee-fae2-4b8c-966c-841f14f7cc1f","block_type":"box","text":"result in cuts in dividend payout rates. As deregulation allows utility companies to diversify outside of","page_number":193,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"b3ed0a7c-69ab-4fed-a125-3779c7924538","block_type":"box","text":"their original geographic regions and their traditional lines of business, utility companies may engage in","page_number":193,"box":{"x":116,"y":723,"width":764,"height":12}},{"id":"336cb90a-4823-4f76-89a5-1f3e607ecc39","block_type":"box","text":"riskier ventures. Therefore, deregulation may eliminate restrictions on the maximum level of profits of","page_number":193,"box":{"x":117,"y":738,"width":749,"height":12}},{"id":"8709049b-f892-4c52-bb84-ab43a6179f24","block_type":"box","text":"certain utility companies, but may also subject these companies to greater risk of loss. The Manager","page_number":193,"box":{"x":116,"y":754,"width":745,"height":12}},{"id":"5622f8ac-bdf9-4e24-9a5a-16d4be20a5d4","block_type":"box","text":"seeks to take advantage of favorable investment opportunities that may arise from these structural","page_number":193,"box":{"x":116,"y":769,"width":730,"height":12}},{"id":"8ef588ab-6c92-40de-8d23-8711f1f302f4","block_type":"box","text":"changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":193,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"b7fe269c-77fc-4739-83cf-d21cc158c242","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":193,"box":{"x":117,"y":816,"width":749,"height":12}},{"id":"3ebe4d35-a724-4481-a4af-722f99af5860","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by","page_number":193,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"079f9e93-118b-4090-8265-81b78c2e5f9f","block_type":"box","text":"their respective governments than utilities in the United States and, as in the United States, generally","page_number":193,"box":{"x":116,"y":847,"width":755,"height":12}},{"id":"d9bc6d26-f660-4f13-8ba5-9b9ccd024f2f","block_type":"box","text":"are required to seek government approval for rate increases. In addition, many foreign utilities use","page_number":193,"box":{"x":116,"y":862,"width":733,"height":12}},{"id":"aba43c62-8a4a-49ea-84fb-0a7c68ef9a49","block_type":"box","text":"fuels that may cause more pollution than those used in the United States, which may require such","page_number":193,"box":{"x":116,"y":878,"width":731,"height":12}},{"id":"0ff83910-ef1a-4c48-a25d-a7f6f5e94566","block_type":"box","text":"II-99","page_number":193,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f1d9f45a-28dd-4258-8fb8-cbbf68c4555a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":193,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"eb8a6ba9-0c72-4fdf-8cfb-871c7a1458b4","block_type":"box","text":"utilities to invest in pollution control equipment to meet any proposed pollution restrictions. Foreign","page_number":194,"box":{"x":117,"y":87,"width":733,"height":12}},{"id":"0af1ecc3-e073-44aa-8ad8-40e70d849d52","block_type":"box","text":"regulatory systems vary from country to country and may evolve in ways different from regulation in the","page_number":194,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"6f8de627-116e-4e81-815b-9742e10d9990","block_type":"box","text":"United States.","page_number":194,"box":{"x":117,"y":118,"width":109,"height":10}},{"id":"c41c5319-343f-4bc7-b932-a65ca22b3536","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment","page_number":194,"box":{"x":116,"y":149,"width":676,"height":12}},{"id":"a6b603fd-d4ac-47c6-ae2a-3d3972214515","block_type":"box","text":"opportunities throughout the world. For example, the rapid growth of certain foreign economies will","page_number":194,"box":{"x":116,"y":165,"width":736,"height":12}},{"id":"f5211421-0183-47e4-8b12-0e939f713785","block_type":"box","text":"necessitate expansion of capacity in the utility industries in those countries. Although many foreign","page_number":194,"box":{"x":117,"y":180,"width":735,"height":12}},{"id":"3f219cac-c4c7-40b4-b577-4882200c1d9d","block_type":"box","text":"utility companies currently are government-owned, thereby limiting current investment opportunities for","page_number":194,"box":{"x":117,"y":196,"width":766,"height":12}},{"id":"841ad063-0a4b-4bfb-b466-a456df29b9e9","block_type":"box","text":"a Fund, the Manager believes that, in order to attract significant capital for growth, foreign governments","page_number":194,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"9a909881-cc0a-4e95-bde2-08480932c565","block_type":"box","text":"are likely to seek global investors through the privatization of their utility industries. Privatization, which","page_number":194,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"f8d74c4a-2adb-4489-b960-bf761fc5d20f","block_type":"box","text":"refers to the trend toward investor ownership of assets rather than government ownership, is expected","page_number":194,"box":{"x":117,"y":242,"width":764,"height":12}},{"id":"c4b42408-e5cb-420a-be9a-d56bea3c3350","block_type":"box","text":"to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":194,"box":{"x":116,"y":258,"width":699,"height":12}},{"id":"b3238a47-aa83-41bc-a0e5-63f4d90bfc31","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign","page_number":194,"box":{"x":116,"y":273,"width":726,"height":12}},{"id":"da201621-a9d9-4695-9fc4-3887efcd27df","block_type":"box","text":"markets will increase.","page_number":194,"box":{"x":117,"y":289,"width":164,"height":9}},{"id":"c8c638c8-9d2a-4f5b-8da2-7a728304df6d","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and","page_number":194,"box":{"x":116,"y":320,"width":732,"height":12}},{"id":"05f89652-9d13-4cd9-89c2-391048d4c84a","block_type":"box","text":"development in the geographic areas in which they do business. The Manager will take into account","page_number":194,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"d268ac21-7aea-4cd9-be50-e3e08f0f0cc4","block_type":"box","text":"anticipated economic growth rates and other economic developments when selecting securities of","page_number":194,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"30ec1818-ca94-4430-9f6a-805823dd6911","block_type":"box","text":"utility companies.","page_number":194,"box":{"x":117,"y":366,"width":132,"height":12}},{"id":"47655ab4-9d71-43f1-9ab7-a3e229371c00","block_type":"box","text":"Electric.","page_number":194,"box":{"x":116,"y":397,"width":58,"height":10}},{"id":"070c7a4e-fcbb-4d16-b4af-0d6c019c2a78","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the","page_number":194,"box":{"x":176,"y":397,"width":630,"height":12}},{"id":"249fff0d-1066-444f-9121-9ff07a669176","block_type":"box","text":"generation, transmission and sale of electric energy, although many also provide other energy-related","page_number":194,"box":{"x":116,"y":413,"width":760,"height":12}},{"id":"537d00b1-fbce-4e52-a2b1-fb7f8fbee447","block_type":"box","text":"services. In the past, electric utility companies, in general, have been favorably affected by lower fuel","page_number":194,"box":{"x":116,"y":428,"width":754,"height":12}},{"id":"c32f8a61-2606-48ca-9a2b-3ecdcfb397aa","block_type":"box","text":"and financing costs and the full or near completion of major construction programs. In addition, many","page_number":194,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"80332319-3032-4a38-97f6-d26fb0d59f3c","block_type":"box","text":"of these companies have generated cash flows in excess of current operating expenses and","page_number":194,"box":{"x":116,"y":459,"width":690,"height":12}},{"id":"1fe38ec4-8351-4728-96b5-fa5ee841a942","block_type":"box","text":"construction expenditures, permitting some degree of diversification into unregulated businesses.","page_number":194,"box":{"x":116,"y":475,"width":727,"height":12}},{"id":"56d24fe2-34a5-41b4-86ad-d186f5461878","block_type":"box","text":"Some electric utilities have also taken advantage of the right to sell power outside of their traditional","page_number":194,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"677b2b23-1bd8-4134-9a04-bd4000af00d9","block_type":"box","text":"geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":194,"box":{"x":116,"y":506,"width":758,"height":12}},{"id":"72fd7353-b3cc-4cd2-b48e-453717f87a45","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital","page_number":194,"box":{"x":117,"y":521,"width":714,"height":12}},{"id":"6ff78407-089d-4ca3-99ef-59a79e8bda0a","block_type":"box","text":"construction programs, costs associated with compliance with environmental and safety regulations","page_number":194,"box":{"x":116,"y":537,"width":744,"height":12}},{"id":"708eb6c4-e28e-42f0-a246-07d86cb71e6a","block_type":"box","text":"and changes in the regulatory climate. As interest rates declined, many utilities refinanced high cost","page_number":194,"box":{"x":116,"y":552,"width":744,"height":12}},{"id":"9fc10644-ad0d-4ba8-951e-b90cff0e3e96","block_type":"box","text":"debt and in doing so improved their fixed charges coverage. Regulators, however, lowered allowed","page_number":194,"box":{"x":116,"y":568,"width":740,"height":12}},{"id":"b422c491-7dbb-4344-b52d-caa3e007afaa","block_type":"box","text":"rates of return as interest rates declined and thereby caused the benefits of the rate declines to be","page_number":194,"box":{"x":117,"y":583,"width":734,"height":12}},{"id":"b60b1c5e-7414-473d-b60a-f4530cf44f97","block_type":"box","text":"shared wholly or in part with customers. In a period of rising interest rates, the allowed rates of return","page_number":194,"box":{"x":116,"y":599,"width":754,"height":12}},{"id":"6be529cf-65f8-4d71-b996-3d5673d3a50f","block_type":"box","text":"may not keep pace with the utilities’ increased costs. The construction and operation of nuclear power","page_number":194,"box":{"x":117,"y":614,"width":760,"height":12}},{"id":"aa102c6f-929e-48d6-9fa1-92689864ad2b","block_type":"box","text":"facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear Regulatory","page_number":194,"box":{"x":116,"y":630,"width":686,"height":12}},{"id":"6d4623a2-bb52-4429-896f-1099bc259471","block_type":"box","text":"Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in","page_number":194,"box":{"x":117,"y":645,"width":727,"height":12}},{"id":"f0897171-b22c-40e7-9d8a-69ad54498eb0","block_type":"box","text":"higher operating costs and higher capital expenditures, with the risk that the regulators may disallow","page_number":194,"box":{"x":117,"y":661,"width":743,"height":12}},{"id":"51f17032-e117-4415-bd0c-caf4c5a26dfe","block_type":"box","text":"inclusion of these costs in rate authorizations or the risk that a company may not be permitted to","page_number":194,"box":{"x":117,"y":676,"width":713,"height":12}},{"id":"70b3ede2-5645-4fc0-87a1-3a5513ce4641","block_type":"box","text":"operate or complete construction of a facility. In addition, operators of nuclear power plants may be","page_number":194,"box":{"x":116,"y":692,"width":735,"height":12}},{"id":"75a5d866-a5e9-487c-ad82-21884b56d3dd","block_type":"box","text":"subject to significant costs for disposal of nuclear fuel and for decommissioning such plants.","page_number":194,"box":{"x":116,"y":707,"width":681,"height":12}},{"id":"5b5a933f-ab7b-4f5d-aa79-77123d9b24c9","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected","page_number":194,"box":{"x":116,"y":738,"width":760,"height":12}},{"id":"faf49b3e-753c-4f22-803f-e1bcd4f622ca","block_type":"box","text":"to be impacted to a greater extent in the future by the division of their asset base. Electric utility","page_number":194,"box":{"x":116,"y":754,"width":706,"height":12}},{"id":"9ea62506-b104-4aa6-a465-5dfd2af0fd1f","block_type":"box","text":"companies that focus more on the generation of electricity may be assigned less favorable ratings as","page_number":194,"box":{"x":116,"y":769,"width":749,"height":12}},{"id":"312d41a9-bd7a-40ad-b4a9-954a5968e3d4","block_type":"box","text":"this business is expected to be competitive and the least regulated. On the other hand, companies that","page_number":194,"box":{"x":116,"y":785,"width":763,"height":12}},{"id":"f250bc57-7ae4-47a2-8b28-0d98988b7818","block_type":"box","text":"focus on transmission and distribution, which is expected to be the least competitive and the more","page_number":194,"box":{"x":116,"y":800,"width":727,"height":12}},{"id":"29ae024a-44a8-4634-8c71-78f0cba83eb7","block_type":"box","text":"regulated part of the business, may see higher ratings given the greater predictability of cash flow.","page_number":194,"box":{"x":117,"y":816,"width":726,"height":12}},{"id":"cb186391-997a-4120-926b-f6e6c6032d10","block_type":"box","text":"A number of states are considering or have","page_number":194,"box":{"x":116,"y":847,"width":319,"height":12}},{"id":"52f1a2e6-bcad-49e5-ada6-9367b6c3466a","block_type":"box","text":"enacted deregulation proposals. The introduction of","page_number":194,"box":{"x":436,"y":847,"width":379,"height":12}},{"id":"43625273-c233-471f-86d1-8e0d1a390937","block_type":"box","text":"competition into the industry as a result of such","page_number":194,"box":{"x":116,"y":862,"width":342,"height":12}},{"id":"6257b6ab-38a0-41e9-91e4-6a6fe81ca4a0","block_type":"box","text":"deregulation has at times resulted in lower revenue,","page_number":194,"box":{"x":458,"y":862,"width":386,"height":12}},{"id":"624ce7e1-1f65-49eb-8cc0-48bd727579c9","block_type":"box","text":"lower credit ratings, increased default risk, and lower","page_number":194,"box":{"x":117,"y":878,"width":386,"height":12}},{"id":"47d500f9-1e0a-4ed8-8232-e1a816bff4ef","block_type":"box","text":"electric utility security prices. Such increased","page_number":194,"box":{"x":504,"y":878,"width":330,"height":12}},{"id":"2dd0faa8-2ec3-4886-be72-038c38fb4878","block_type":"box","text":"II-100","page_number":194,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"2d4d4d77-0e29-4784-be8c-ecbde4fd6453","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":194,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"83cdc4c0-23a7-4cee-ad06-5fba61287bb4","block_type":"box","text":"competition may also cause long-term contracts, whic","page_number":195,"box":{"x":116,"y":87,"width":391,"height":12}},{"id":"763db941-66a6-4adf-8f16-bb6ed696e311","block_type":"box","text":"h electric utilities previously entered into to buy","page_number":195,"box":{"x":508,"y":87,"width":343,"height":12}},{"id":"2f7479ce-2d36-4452-a5c2-ea8284feed7f","block_type":"box","text":"power, to become “stranded assets” which have no economic value. Any loss associated with such","page_number":195,"box":{"x":117,"y":102,"width":723,"height":13}},{"id":"841e82b7-8e7a-48cf-9e8f-2ee23d772438","block_type":"box","text":"contracts must be absorbed by ratepayers and investors.","page_number":195,"box":{"x":116,"y":118,"width":413,"height":12}},{"id":"84796cd3-65fb-4917-8854-fffc208979a3","block_type":"box","text":"In addition, some electric utilities have acquired","page_number":195,"box":{"x":530,"y":118,"width":354,"height":12}},{"id":"37c55566-f4ae-48e6-a11d-8f37a71bb5e3","block_type":"box","text":"electric utilities overseas to diversify, enhance ear","page_number":195,"box":{"x":116,"y":134,"width":362,"height":12}},{"id":"ee76b81e-6045-4eb8-8970-9d7ee017ff70","block_type":"box","text":"nings and gain experience in operating in a deregulated","page_number":195,"box":{"x":478,"y":134,"width":409,"height":12}},{"id":"41d6c64d-e620-4c6e-9d2d-af85b7eed997","block_type":"box","text":"environment. In some instances, such acquisitions","page_number":195,"box":{"x":116,"y":149,"width":366,"height":12}},{"id":"05864c69-17cc-4ba5-8a2c-4205038ba71b","block_type":"box","text":"have involved significant borrowings, which have","page_number":195,"box":{"x":483,"y":149,"width":364,"height":12}},{"id":"d8e3bfb4-e30f-4035-969a-e98c4fac824c","block_type":"box","text":"burdened the acquirer’s balance sheet. There is no assu","page_number":195,"box":{"x":117,"y":165,"width":408,"height":11}},{"id":"ae420c48-8027-47aa-8a0f-23687bc2333c","block_type":"box","text":"rance that current deregulation proposals will be","page_number":195,"box":{"x":528,"y":165,"width":353,"height":12}},{"id":"0ac4ac56-0063-4908-88d4-fce13aa7d12b","block_type":"box","text":"adopted. However, deregulation in any form could signi","page_number":195,"box":{"x":116,"y":180,"width":400,"height":12}},{"id":"99bb6dff-9d2c-4195-b6c7-1e1ae3c8a011","block_type":"box","text":"ficantly impact the electric utilities industry.","page_number":195,"box":{"x":517,"y":180,"width":314,"height":12}},{"id":"a42df67e-0063-4fde-8fff-7397653ddba7","block_type":"box","text":"Telecommunications.","page_number":195,"box":{"x":118,"y":211,"width":155,"height":10}},{"id":"7f5d1ef7-5468-424f-b664-8e82e5420278","block_type":"box","text":"The telecommunications industry today includes both traditional telephone","page_number":195,"box":{"x":275,"y":211,"width":561,"height":12}},{"id":"4772637c-c5d4-4a60-af00-75664c61b5fb","block_type":"box","text":"companies, with a history of broad market coverage and highly regulated businesses, and cable","page_number":195,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"aa8cb559-8ac1-443e-9228-38e940febeba","block_type":"box","text":"companies, which began as small, lightly regulated businesses focused on limited markets. Today","page_number":195,"box":{"x":116,"y":242,"width":733,"height":12}},{"id":"d9c3ad11-84c6-4c23-9139-e9765f6c7210","block_type":"box","text":"these two historically different businesses are converging in an industry that is trending toward larger,","page_number":195,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"907c0333-bf54-41b1-9299-b720159e9704","block_type":"box","text":"competitive national and international markets with an emphasis on deregulation. Companies that","page_number":195,"box":{"x":116,"y":273,"width":729,"height":12}},{"id":"442f29d6-41e3-48c3-bf3c-285e7d104806","block_type":"box","text":"distribute telephone services and provide access to the telephone networks still comprise the greatest","page_number":195,"box":{"x":116,"y":289,"width":760,"height":12}},{"id":"486b743b-051e-4eb0-936f-8bad925988fd","block_type":"box","text":"portion of this segment, but non-regulated activities such as wireless telephone services, paging, data","page_number":195,"box":{"x":117,"y":304,"width":759,"height":12}},{"id":"45dd80ae-b669-44ec-ae6f-f0e874e64fff","block_type":"box","text":"transmission and processing, equipment retailing, computer software and hardware and internet","page_number":195,"box":{"x":116,"y":320,"width":718,"height":12}},{"id":"62cff949-91b9-4556-9a12-2175a38746e3","block_type":"box","text":"services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":195,"box":{"x":116,"y":335,"width":759,"height":12}},{"id":"43ba4af6-10a6-41ee-8cd8-4dac20a106b8","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies.","page_number":195,"box":{"x":116,"y":351,"width":752,"height":12}},{"id":"753674cc-2b8d-4f2c-87a1-adb7042c10ba","block_type":"box","text":"The presence of unregulated companies in this industry and the entry of traditional telephone","page_number":195,"box":{"x":116,"y":366,"width":696,"height":12}},{"id":"6410c85d-f12c-4fb6-9e39-635d54d5d288","block_type":"box","text":"companies into unregulated or less regulated businesses provide significant investment opportunities","page_number":195,"box":{"x":116,"y":382,"width":755,"height":12}},{"id":"da118b9a-f726-46f1-b795-7a42b089042e","block_type":"box","text":"with companies that may increase their earnings at faster rates than had been allowed in traditional","page_number":195,"box":{"x":116,"y":397,"width":742,"height":12}},{"id":"7ef2ec04-30fb-4d5e-bfe0-3a7814c93684","block_type":"box","text":"regulated businesses. Still, increasing competition, technological innovations and other structural","page_number":195,"box":{"x":117,"y":413,"width":722,"height":12}},{"id":"bca64748-8f66-4776-a3c6-b5144b8da359","block_type":"box","text":"changes could adversely affect the profitability of such utilities and the growth rate of their dividends.","page_number":195,"box":{"x":116,"y":428,"width":750,"height":12}},{"id":"36f45b5a-e01f-40a3-b3f8-05ae07233a9f","block_type":"box","text":"Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":195,"box":{"x":117,"y":444,"width":725,"height":12}},{"id":"b3469614-a877-4d7b-b476-db899d2caa76","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility","page_number":195,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"616d3ae5-3e52-48a1-a6c8-a312f929603a","block_type":"box","text":"services to both residential, corporate and governmental customers.","page_number":195,"box":{"x":116,"y":475,"width":511,"height":12}},{"id":"1c3793a5-049c-43d9-b3ab-26703822ff94","block_type":"box","text":"Gas.","page_number":195,"box":{"x":117,"y":506,"width":33,"height":9}},{"id":"85e1fb3e-be77-43be-b69e-2dde3f924ddc","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes.","page_number":195,"box":{"x":151,"y":506,"width":733,"height":12}},{"id":"ac7f9ae9-3328-45f3-959b-725257cfa5e9","block_type":"box","text":"In the United States, interstate transmission companies are regulated by the Federal Energy","page_number":195,"box":{"x":117,"y":521,"width":689,"height":12}},{"id":"26291654-4f06-43b2-8492-85c408b5fa58","block_type":"box","text":"Regulatory Commission, which is reducing its regulation of the industry. Many companies have","page_number":195,"box":{"x":117,"y":537,"width":709,"height":12}},{"id":"d2575ff1-b5e7-4b6c-807d-3e8e2f762e24","block_type":"box","text":"diversified into oil and gas exploration and development, making returns more sensitive to energy","page_number":195,"box":{"x":116,"y":552,"width":728,"height":12}},{"id":"9a2d68fe-3f10-42d2-9fb9-bef98b1d8c9e","block_type":"box","text":"prices. In the recent decade, gas utility companies have been adversely affected by disruptions in the","page_number":195,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"56d5d903-2c80-4df8-954f-cf301f8c7f1e","block_type":"box","text":"oil industry and have also been affected by increased concentration and competition. In the opinion of","page_number":195,"box":{"x":116,"y":583,"width":759,"height":12}},{"id":"7b0387dc-e6f3-4fed-9714-0b7ee8c7c142","block_type":"box","text":"the Manager, however, environmental considerations could improve the gas industry outlook in the","page_number":195,"box":{"x":116,"y":599,"width":738,"height":12}},{"id":"f6e602fe-e77f-48cf-95b8-94549bd210d5","block_type":"box","text":"future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":195,"box":{"x":116,"y":614,"width":709,"height":12}},{"id":"16671d07-1929-466c-9ac4-b6d5551ac088","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for","page_number":195,"box":{"x":117,"y":630,"width":702,"height":12}},{"id":"8ca54beb-eef8-4ae3-9f9c-5f605ec160e9","block_type":"box","text":"electricity generation. However, technological or regulatory changes within the industry may delay or","page_number":195,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"9ac92228-4c4f-4725-b56d-5364beac594b","block_type":"box","text":"prevent this result.","page_number":195,"box":{"x":117,"y":661,"width":135,"height":12}},{"id":"6e214895-e2fa-47f1-9c2b-a0121f3cbe18","block_type":"box","text":"Water.","page_number":195,"box":{"x":118,"y":692,"width":46,"height":9}},{"id":"893a855e-2d21-46a6-a7cd-2cc41b26f5c9","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United","page_number":195,"box":{"x":170,"y":692,"width":695,"height":12}},{"id":"7f288f10-be01-4d50-866e-2eca1b548e9b","block_type":"box","text":"States and around the world the industry is highly fragmented because most of the supplies are owned","page_number":195,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"f236c19f-101f-4256-922b-7ff0104358b0","block_type":"box","text":"by local authorities. Companies in this industry are generally mature and are experiencing little or no","page_number":195,"box":{"x":117,"y":723,"width":743,"height":12}},{"id":"b8b0a970-b021-409a-85e7-1be5029cf2a2","block_type":"box","text":"per capita volume growth. In the opinion of the Manager, there may be opportunities for certain","page_number":195,"box":{"x":117,"y":738,"width":702,"height":12}},{"id":"211de3af-ab8d-43d8-983b-08dbcae78b5d","block_type":"box","text":"companies to acquire other water utility companies and for foreign acquisition of domestic companies.","page_number":195,"box":{"x":116,"y":754,"width":755,"height":12}},{"id":"a2acb599-12f1-4f8b-9409-3967c6cad7af","block_type":"box","text":"The Manager believes that favorable investment opportunities may result from consolidation of this","page_number":195,"box":{"x":116,"y":769,"width":733,"height":12}},{"id":"c0917295-ee6d-4c8c-9456-faf396b855d1","block_type":"box","text":"segment. As with other utilities, however, increased regulation, increased costs and potential","page_number":195,"box":{"x":116,"y":785,"width":687,"height":12}},{"id":"aa305d1d-f716-48fb-a623-3a9af266127f","block_type":"box","text":"disruptions in supply may adversely affect investments in water supply utilities.","page_number":195,"box":{"x":116,"y":800,"width":582,"height":12}},{"id":"4f1cf739-adb7-4ccc-b99f-6b0ba040f05b","block_type":"box","text":"Utility Industries Generally.","page_number":195,"box":{"x":117,"y":831,"width":197,"height":12}},{"id":"4277645f-87a9-4fb2-8cc6-36b4836ee636","block_type":"box","text":"There can be no assurance that the positive developments noted above,","page_number":195,"box":{"x":316,"y":831,"width":548,"height":12}},{"id":"34c267a6-b844-4475-9757-7f03277b501d","block_type":"box","text":"including those relating to privatization and changing regulation, will occur or that risk factors other than","page_number":195,"box":{"x":117,"y":847,"width":771,"height":12}},{"id":"aee2a944-0c88-4498-bee4-ab0a51e5028e","block_type":"box","text":"those noted above will not develop in the future.","page_number":195,"box":{"x":116,"y":862,"width":361,"height":12}},{"id":"53a9cbe8-28c1-4be7-a9ca-4edffe19b43b","block_type":"box","text":"II-101","page_number":195,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"5158ae8e-5df3-423d-b812-eef44a2369e4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":195,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9d8c6f8a-08a3-4792-a270-c8d5815ad55d","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":196,"box":{"x":118,"y":87,"width":643,"height":12}},{"id":"9dd0ba85-4384-429e-89d1-5a2d3e5ed194","block_type":"box","text":"A Fund may","page_number":196,"box":{"x":762,"y":87,"width":100,"height":12}},{"id":"f66b1540-dc11-48fb-9efc-da0da8a3c39a","block_type":"box","text":"purchase or sell securities that it is entitled to receive on a when-issued basis. A Fund may also","page_number":196,"box":{"x":117,"y":103,"width":713,"height":12}},{"id":"aa30e1c7-16e0-4b56-877f-65cd88613b03","block_type":"box","text":"purchase or sell securities on a delayed delivery basis or through a forward commitment (including on","page_number":196,"box":{"x":117,"y":118,"width":758,"height":12}},{"id":"8f7d0fcd-2983-402e-84dd-bd99855e3c67","block_type":"box","text":"a TBA (to be announced) basis). These transactions involve the purchase or sale of securities by a","page_number":196,"box":{"x":116,"y":134,"width":739,"height":12}},{"id":"a2eef570-d692-4790-88c4-ab9c620edf34","block_type":"box","text":"Fund at an established price with payment and delivery taking place in the future. The Fund enters into","page_number":196,"box":{"x":117,"y":149,"width":767,"height":12}},{"id":"7df8534b-b36b-4554-ab4e-819a0eb65f41","block_type":"box","text":"these transactions to obtain what is considered an advantageous price to the Fund at the time of","page_number":196,"box":{"x":116,"y":165,"width":721,"height":12}},{"id":"668874c2-eab8-43a3-b24a-eb2165fe36bd","block_type":"box","text":"entering into the transaction.","page_number":196,"box":{"x":116,"y":180,"width":217,"height":12}},{"id":"45636551-3453-45eb-b791-568904262d27","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the","page_number":196,"box":{"x":117,"y":211,"width":731,"height":12}},{"id":"19bc15d8-27bc-41a7-adc8-a44c450a6d1f","block_type":"box","text":"Federal Reserve Bank of New York, a Fund or its counterparty generally will be required to post","page_number":196,"box":{"x":117,"y":227,"width":714,"height":12}},{"id":"52e78b0a-99b5-414b-b786-f404a6cb6b30","block_type":"box","text":"collateral when entering into certain forward-settling transactions, including without limitation TBA","page_number":196,"box":{"x":116,"y":242,"width":726,"height":12}},{"id":"11bebb80-817b-4cc9-8cac-39e8aa4365bf","block_type":"box","text":"transactions. FINRA rules have also been implemented that include mandatory margin requirements","page_number":196,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"6f119718-ee9a-48ea-8eac-043eb79c2ebd","block_type":"box","text":"for the TBA market with limited exceptions. The collateralization of TBA trades is intended to mitigate","page_number":196,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"4350c6e7-6c12-49a9-9f80-c68fffefe3d3","block_type":"box","text":"counterparty credit risk between trade and settlement, but could increase the cost of TBA transactions","page_number":196,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"dc718674-5e3b-42eb-bc60-c8588de7abe4","block_type":"box","text":"and impose added operational complexity.","page_number":196,"box":{"x":116,"y":304,"width":320,"height":12}},{"id":"fede9727-4d24-49e1-9a46-edc8cc0d4951","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a","page_number":196,"box":{"x":116,"y":335,"width":754,"height":12}},{"id":"e4dc3d36-a3ef-4a60-8319-6272b0fe72e9","block_type":"box","text":"security purchased or sold on a delayed delivery basis or through a forward commitment will be","page_number":196,"box":{"x":116,"y":351,"width":713,"height":12}},{"id":"6f655c32-6de5-4455-aded-1f5b60524fc3","block_type":"box","text":"delivered. Also, the value of securities in these transactions on the delivery date may be more or less","page_number":196,"box":{"x":116,"y":366,"width":755,"height":12}},{"id":"6a7cd176-a1f8-478e-98f0-ee1cdeb468f8","block_type":"box","text":"than the price paid by the Fund to purchase the securities. The Fund will lose money if the value of the","page_number":196,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"156cd75e-298e-4d48-a4a8-2a91fe6c28d0","block_type":"box","text":"security in such a transaction declines below the purchase price and will not benefit if the value of the","page_number":196,"box":{"x":116,"y":397,"width":757,"height":12}},{"id":"d4955fd4-63c1-4c0a-9750-c9019df91668","block_type":"box","text":"security appreciates above the sale price during the commitment period.","page_number":196,"box":{"x":116,"y":413,"width":542,"height":12}},{"id":"ee3f8377-e8c0-4fd7-bd8c-896d4468a42c","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a","page_number":196,"box":{"x":117,"y":444,"width":715,"height":12}},{"id":"6e52fba4-4e92-44a4-8912-fe224b2012f6","block_type":"box","text":"commitment after it has been entered into, and may sell securities it has committed to purchase before","page_number":196,"box":{"x":116,"y":459,"width":767,"height":12}},{"id":"89b743b9-e389-4f6b-a51b-0567b12974aa","block_type":"box","text":"those securities are delivered to the Fund on the settlement date. In these cases the Fund may realize","page_number":196,"box":{"x":116,"y":475,"width":764,"height":12}},{"id":"1d1d531a-cfe4-446b-a495-10a3952b185f","block_type":"box","text":"a taxable capital gain or loss.","page_number":196,"box":{"x":116,"y":490,"width":221,"height":12}},{"id":"1b4fd30c-4243-4fc3-b8f5-733995f54088","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other","page_number":196,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"29f93395-d264-4cd7-ba1f-3a449c008f91","block_type":"box","text":"party to consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss","page_number":196,"box":{"x":117,"y":537,"width":760,"height":12}},{"id":"855a2afd-104d-482d-8670-2622125db824","block_type":"box","text":"or missing an opportunity to obtain a price considered to be advantageous.","page_number":196,"box":{"x":116,"y":552,"width":561,"height":12}},{"id":"cf77bba0-21ee-445a-b0b0-dffec46069ab","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any","page_number":196,"box":{"x":116,"y":583,"width":688,"height":12}},{"id":"d9250f3d-c792-4e74-a81e-1cf8b74aaac1","block_type":"box","text":"subsequent fluctuations in their market value, is taken into account when determining the market value","page_number":196,"box":{"x":116,"y":599,"width":767,"height":12}},{"id":"d9d28745-5f6d-42e6-9607-488910bc4c13","block_type":"box","text":"of a Fund starting on the day the Fund agrees to purchase the securities. The Fund does not earn","page_number":196,"box":{"x":116,"y":614,"width":732,"height":12}},{"id":"3997580d-86ad-4f54-9ff5-d88111194935","block_type":"box","text":"interest on the securities it has committed to purchase until they are paid for and delivered on the","page_number":196,"box":{"x":117,"y":630,"width":725,"height":12}},{"id":"7fc4c865-108f-4bc3-adc6-8c040e8e88ed","block_type":"box","text":"settlement date.","page_number":196,"box":{"x":116,"y":645,"width":124,"height":10}},{"id":"fd949451-73b9-4c87-bbef-6b55466269cb","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":196,"box":{"x":117,"y":676,"width":740,"height":12}},{"id":"c77702a8-408a-4164-a117-1d3c36e30822","block_type":"box","text":"settling securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls)","page_number":196,"box":{"x":116,"y":692,"width":747,"height":12}},{"id":"5bf36f84-8090-4405-9958-aa297c831831","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":196,"box":{"x":116,"y":707,"width":746,"height":12}},{"id":"cc714ac5-679d-409e-a773-5972ece95295","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the Fund intends to physically","page_number":196,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"f13ba569-e797-42fa-be99-942d295a053e","block_type":"box","text":"settle the transaction and the transaction will settle within 35 days of its trade date (the “Delayed","page_number":196,"box":{"x":116,"y":738,"width":719,"height":12}},{"id":"55aab1fb-312f-449f-b414-2483c6e09984","block_type":"box","text":"Settlement Securities Provision”). If a when-issued, forward-settling or non-standard settlement cycle","page_number":196,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"95482aa9-34a1-4f6e-9332-524ec5e359b1","block_type":"box","text":"security does not satisfy the Delayed-Settlement Securities Provision, then it is treated as a Derivatives","page_number":196,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"11baba79-bedd-4193-8323-5607827e8c38","block_type":"box","text":"Transaction under Rule 18f-4. See “—Derivatives—Regulation of Derivatives—Rule 18f-4 under the","page_number":196,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"b8b7adf9-84c2-4508-9d0e-b8c0bf03d702","block_type":"box","text":"Investment Company Act” above.","page_number":196,"box":{"x":117,"y":800,"width":246,"height":12}},{"id":"e2143a85-a429-4c0f-a624-2f2b4016213b","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":196,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"a06b2eb4-ac33-4827-84f9-7d7436334174","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many agreements with","page_number":196,"box":{"x":116,"y":847,"width":716,"height":12}},{"id":"ec7e1521-13b1-4566-bb67-01b43b482ea0","block_type":"box","text":"respect to when-issued, TBA and forward commitment transactions, terms that delay or restrict the","page_number":196,"box":{"x":117,"y":862,"width":736,"height":12}},{"id":"31d33b1d-54b6-4dc7-9688-53e34aa8e02a","block_type":"box","text":"rights of counterparties, such as a Fund, to terminate such agreements, foreclose upon collateral,","page_number":196,"box":{"x":117,"y":878,"width":728,"height":12}},{"id":"60e670b1-70bc-442f-9f04-7599800b0e4c","block_type":"box","text":"II-102","page_number":196,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"fd27f6e6-c3bb-43d6-aafa-a9f02aed19ce","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":196,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a0f616ef-c2fb-4324-9ad1-2119f8942de2","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the counterparty and/","page_number":197,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"a7347df6-a836-4d21-b509-937e2cc6f354","block_type":"box","text":"or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that","page_number":197,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"c0979d1e-4967-4577-8afb-f7801b18251a","block_type":"box","text":"these requirements, as well as potential additional government regulation and other developments in","page_number":197,"box":{"x":116,"y":118,"width":752,"height":12}},{"id":"d78c0593-e3bf-4d2d-8aff-2eac353d9c2a","block_type":"box","text":"the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":197,"box":{"x":116,"y":134,"width":735,"height":12}},{"id":"c3b7be9e-2942-4dc4-89c0-1db203ec4bc9","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":197,"box":{"x":116,"y":149,"width":600,"height":12}},{"id":"d4518bff-cbfb-430a-9e7f-adfdb235e894","block_type":"box","text":"Yields and Ratings.","page_number":197,"box":{"x":118,"y":180,"width":152,"height":12}},{"id":"36f4ec5b-8d93-4764-bedc-0e985f843918","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including","page_number":197,"box":{"x":271,"y":180,"width":604,"height":12}},{"id":"30c553c7-8673-4ee9-a5d9-62ff7ec24fe4","block_type":"box","text":"general market conditions, conditions in the particular market for the obligation, the financial condition","page_number":197,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"f9dc0e26-21f9-471f-aa49-795d7969e221","block_type":"box","text":"of the issuer, the size of the offering, the maturity of the obligation and the ratings of the issue. The","page_number":197,"box":{"x":116,"y":211,"width":738,"height":12}},{"id":"84877a6c-d9e6-4aa9-9686-1b11f815b87c","block_type":"box","text":"ratings of Moody’s, Fitch and S&P represent their respective opinions as to the quality of the","page_number":197,"box":{"x":117,"y":227,"width":688,"height":12}},{"id":"6dc6efee-480a-47c9-9757-f4a989ef520f","block_type":"box","text":"obligations they undertake to rate. Ratings, however, are general and are not absolute standards of","page_number":197,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"00d31c51-e9aa-44d4-91eb-0c294a0fb15f","block_type":"box","text":"quality. Consequently, obligations with the same rating, maturity and interest rate may have different","page_number":197,"box":{"x":116,"y":258,"width":749,"height":12}},{"id":"c1515535-952f-409c-a976-82632faaa56d","block_type":"box","text":"market prices. Subsequent to its purchase by a Fund, a rated security may cease to be rated. A Fund’s","page_number":197,"box":{"x":117,"y":273,"width":769,"height":12}},{"id":"2a9e4662-c68b-4900-8f95-23a8124a6f34","block_type":"box","text":"Manager or sub-adviser will consider such an event in determining whether the Fund should continue","page_number":197,"box":{"x":117,"y":289,"width":755,"height":12}},{"id":"27e6d4d2-4c46-42f0-a093-c3320f3614c5","block_type":"box","text":"to hold the security.","page_number":197,"box":{"x":116,"y":304,"width":150,"height":12}},{"id":"1024228f-255c-4400-a65a-2d26d5a9ad61","block_type":"box","text":"Zero Coupon Securities.","page_number":197,"box":{"x":116,"y":335,"width":193,"height":12}},{"id":"6e85ce16-47a4-4ed1-bd2b-dc985309fec5","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value","page_number":197,"box":{"x":310,"y":335,"width":575,"height":12}},{"id":"ec248d81-051a-4d97-b9e3-5fc5c2dd78e1","block_type":"box","text":"and do not pay interest during the life of the security. The discount approximates the total amount of","page_number":197,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"3b0b0897-8b8c-45e0-8277-b78672dc8e93","block_type":"box","text":"interest the security will accrue and compound over the period until maturity at a rate of interest","page_number":197,"box":{"x":117,"y":366,"width":711,"height":12}},{"id":"b202f206-7097-4df4-8af7-6ade4b7452a5","block_type":"box","text":"reflecting the market rate of the security at the time of issuance. Upon maturity, the holder of a zero","page_number":197,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"c538a27b-fc52-460d-81d3-36b65b813ded","block_type":"box","text":"coupon security is entitled to receive the par value of the security.","page_number":197,"box":{"x":116,"y":397,"width":492,"height":12}},{"id":"7fa38824-bc9b-432b-b468-8a24fa617a1c","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to","page_number":197,"box":{"x":116,"y":428,"width":740,"height":12}},{"id":"e411adcf-97d4-4b0e-9641-5e76e86110f0","block_type":"box","text":"have received income (“phantom income”) annually, notwithstanding that cash may not be received","page_number":197,"box":{"x":117,"y":444,"width":742,"height":12}},{"id":"83586bfc-b4ab-498a-a213-a71265f402c1","block_type":"box","text":"currently. The effect of owning instruments that do not make current interest payments is that a fixed","page_number":197,"box":{"x":116,"y":459,"width":751,"height":12}},{"id":"d492cbb8-653e-4a99-be2f-423a75e76cf7","block_type":"box","text":"yield is earned not only on the original investment but also, in effect, on all discount accretion during","page_number":197,"box":{"x":116,"y":475,"width":746,"height":12}},{"id":"deae7c6a-cd46-4e1f-b669-54174925a5d6","block_type":"box","text":"the life of the obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of","page_number":197,"box":{"x":116,"y":490,"width":737,"height":12}},{"id":"540e51bc-f9ab-45b7-9698-849ddfa17083","block_type":"box","text":"being unable to invest distributions at a rate as high as the implicit yield on the zero coupon bond, but","page_number":197,"box":{"x":117,"y":506,"width":757,"height":12}},{"id":"5e0e52cf-1a52-4db0-86e9-ae42024d0fe6","block_type":"box","text":"at the same time eliminates the holder’s ability to reinvest at higher rates in the future. For this reason,","page_number":197,"box":{"x":116,"y":521,"width":764,"height":12}},{"id":"af06d8ec-8619-46a4-9c3b-f57153e8fad3","block_type":"box","text":"some of these securities may be subject to substantially greater price fluctuations during periods of","page_number":197,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"06764525-4f6c-4dcd-88c8-16f86ae86707","block_type":"box","text":"changing market interest rates than are comparable securities that pay interest currently. Longer term","page_number":197,"box":{"x":116,"y":552,"width":760,"height":12}},{"id":"9925da33-76c0-4a10-aafa-0665eb1c5b21","block_type":"box","text":"zero coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These","page_number":197,"box":{"x":116,"y":568,"width":768,"height":12}},{"id":"30c8f394-1d4d-4226-898e-f95c4703bc46","block_type":"box","text":"investments benefit the issuer by mitigating its need for cash to meet debt service, but also require a","page_number":197,"box":{"x":117,"y":583,"width":749,"height":12}},{"id":"83b6dd54-0ab4-4d27-ade9-eb71b309a071","block_type":"box","text":"higher rate of return to attract investors who are willing to defer receipt of cash.","page_number":197,"box":{"x":117,"y":599,"width":589,"height":12}},{"id":"717a5d60-887d-41ff-9eea-702dc150386b","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting","page_number":197,"box":{"x":116,"y":630,"width":739,"height":12}},{"id":"6b55585b-e900-40ad-902d-ab1109476040","block_type":"box","text":"purposes prior to the receipt of cash payments. Zero coupon securities may be subject to greater","page_number":197,"box":{"x":117,"y":645,"width":724,"height":12}},{"id":"f24d52e0-05f6-4392-aac3-66665e87b877","block_type":"box","text":"fluctuation in value and less liquidity in the event of adverse market conditions than comparably rated","page_number":197,"box":{"x":116,"y":661,"width":750,"height":12}},{"id":"e55ef756-7e9e-408d-bbd1-20d3a14d6750","block_type":"box","text":"securities that pay cash interest at regular intervals.","page_number":197,"box":{"x":116,"y":676,"width":382,"height":12}},{"id":"b52e3da8-03a7-4793-b9ea-2e59ba69be1d","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund","page_number":197,"box":{"x":117,"y":707,"width":759,"height":12}},{"id":"590d5afa-adb0-4fda-bbeb-5cd33f9a3ef6","block_type":"box","text":"is required to distribute income to its shareholders and, consequently, may have to dispose of other,","page_number":197,"box":{"x":117,"y":723,"width":740,"height":12}},{"id":"c9d0ce57-edc8-4c79-8090-42e6bf413ca5","block_type":"box","text":"more liquid portfolio securities under disadvantageous circumstances or may have to leverage itself by","page_number":197,"box":{"x":117,"y":738,"width":760,"height":12}},{"id":"384acf0e-64af-4c31-b2bd-8a83ecaaaef3","block_type":"box","text":"borrowing in order to generate the cash to satisfy these distributions. The required distributions may","page_number":197,"box":{"x":117,"y":754,"width":740,"height":12}},{"id":"611b659d-c862-47d2-b166-66e9038bffc3","block_type":"box","text":"result in an increase in a Fund’s exposure to zero coupon securities.","page_number":197,"box":{"x":117,"y":769,"width":505,"height":12}},{"id":"14f89ae1-0e5e-4ce7-b934-3382b900cb59","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero","page_number":197,"box":{"x":117,"y":800,"width":707,"height":12}},{"id":"9cede460-fef7-490e-8c2b-7bf0506f1bcc","block_type":"box","text":"coupon securities. During a period of severe market conditions, the market for such securities may","page_number":197,"box":{"x":116,"y":816,"width":731,"height":12}},{"id":"96f9e573-0369-4358-95f1-516e71fa5875","block_type":"box","text":"become even less liquid. In addition, as these securities do not pay cash interest, a Fund’s investment","page_number":197,"box":{"x":117,"y":831,"width":762,"height":12}},{"id":"a7840662-a64c-48ce-9307-532590b1ddab","block_type":"box","text":"exposure to these securities and their risks, including credit risk, will increase during the time these","page_number":197,"box":{"x":116,"y":847,"width":739,"height":12}},{"id":"2f9534e8-bc3c-4f24-aae0-4b0d9cc125de","block_type":"box","text":"securities are held in the Fund’s portfolio.","page_number":197,"box":{"x":116,"y":862,"width":311,"height":12}},{"id":"65a59576-c200-4649-92ef-f1d4bce3c560","block_type":"box","text":"II-103","page_number":197,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"0a7c36c9-cdad-4d71-a479-7f6927183386","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":197,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0d3807b2-559f-4d7f-9f0d-0452083b18f8","block_type":"box","text":"Suitability. (All Funds)","page_number":198,"box":{"x":117,"y":87,"width":181,"height":12}},{"id":"4ad9de89-43e1-4f99-8304-ca6ad3772ed1","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of","page_number":198,"box":{"x":116,"y":111,"width":760,"height":12}},{"id":"b09e7869-0ce7-4fbf-95dc-900499860503","block_type":"box","text":"the Fund, the Manager and its affiliates. Each Fund should be considered a vehicle for diversification","page_number":198,"box":{"x":116,"y":126,"width":753,"height":12}},{"id":"01d0e035-bf72-41fe-9b51-58d19404e277","block_type":"box","text":"and not as a balanced investment program. The suitability for any particular investor of a purchase of","page_number":198,"box":{"x":116,"y":142,"width":755,"height":12}},{"id":"dbcf23d2-e8d3-464a-9aba-be0c035454d6","block_type":"box","text":"shares in a Fund will depend upon, among other things, such investor’s investment objectives and","page_number":198,"box":{"x":116,"y":157,"width":733,"height":12}},{"id":"df87c60e-8fd4-48b9-a713-272b7c675c23","block_type":"box","text":"such investor’s ability to accept the risks associated with investing in securities, including the risk of","page_number":198,"box":{"x":116,"y":173,"width":741,"height":12}},{"id":"cada8a73-1679-4fc3-9035-01d88f1afdfe","block_type":"box","text":"loss of principal.","page_number":198,"box":{"x":117,"y":188,"width":124,"height":12}},{"id":"0a8db8d7-c3f0-4d3a-98d0-f55f1f240911","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":198,"box":{"x":116,"y":220,"width":293,"height":12}},{"id":"4de19436-657c-4aee-85d7-93bf5d866b83","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the","page_number":198,"box":{"x":116,"y":244,"width":712,"height":12}},{"id":"0b6693bc-dd92-4801-abee-1a20f05fe245","block_type":"box","text":"specific fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to","page_number":198,"box":{"x":116,"y":259,"width":772,"height":13}},{"id":"a7e850d1-c00e-4661-a2cb-b9802cbef752","block_type":"box","text":"those investment restrictions, each Fund is also subject to the restrictions discussed below.","page_number":198,"box":{"x":116,"y":275,"width":683,"height":12}},{"id":"c34602b1-ceb5-4e23-90fe-1aaffe7d264f","block_type":"box","text":"Each Fund’s investments will be limited in order to","page_number":198,"box":{"x":117,"y":307,"width":376,"height":9}},{"id":"4b9d9523-df78-45b2-8514-48094da41134","block_type":"box","text":"allow the Fund to qualify as a “regulated investment","page_number":198,"box":{"x":494,"y":307,"width":389,"height":12}},{"id":"8c844cd8-5d13-4bbd-b1ea-9b008f7b3ec2","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify,","page_number":198,"box":{"x":116,"y":322,"width":721,"height":13}},{"id":"264ac051-0779-4b73-865d-7ebc1809d979","block_type":"box","text":"among other requirements, each Fund will limit its investments so that, at the close of each quarter of","page_number":198,"box":{"x":116,"y":338,"width":757,"height":12}},{"id":"5c75851f-e1ec-4156-9ec2-2692e4b5baed","block_type":"box","text":"the taxable year, (i) at least 50% of the market value of each Fund’s assets is represented by cash,","page_number":198,"box":{"x":116,"y":353,"width":741,"height":13}},{"id":"d5c88c1e-92c9-42b1-9fec-f699d9675215","block_type":"box","text":"securities of other regulated investment companies, U.S. Government Securities and other securities,","page_number":198,"box":{"x":116,"y":369,"width":759,"height":12}},{"id":"cdda0e62-02c1-4bf2-8af0-4b233cd37e9d","block_type":"box","text":"with such other securities limited, in respect of any one issuer, to an amount not greater in value than","page_number":198,"box":{"x":116,"y":384,"width":756,"height":13}},{"id":"af3372c3-c2b7-44b7-be9c-1acb038cf331","block_type":"box","text":"5% of the Fund’s assets and not greater than 10% of the outstanding voting securities of such issuer","page_number":198,"box":{"x":116,"y":400,"width":751,"height":12}},{"id":"bb124335-dd79-407a-9de3-0ddcbbffb511","block_type":"box","text":"and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S.","page_number":198,"box":{"x":116,"y":415,"width":718,"height":13}},{"id":"7cfb875a-9684-4a1d-bdf6-03b3a3e228ef","block_type":"box","text":"Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":198,"box":{"x":117,"y":431,"width":754,"height":12}},{"id":"63404f23-2dc7-477f-8f7d-f7c335aa40f3","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or","page_number":198,"box":{"x":116,"y":447,"width":726,"height":12}},{"id":"6abab47c-b46c-43d0-9c5b-68703cc9d017","block_type":"box","text":"similar trades or businesses or related trades or businesses or in the securities of one or more qualified","page_number":198,"box":{"x":116,"y":462,"width":772,"height":12}},{"id":"4fce74d3-295e-4b48-a354-7b942fd74fd8","block_type":"box","text":"publicly traded partnerships (","page_number":198,"box":{"x":117,"y":477,"width":214,"height":13}},{"id":"a632da78-4514-4d77-a6e1-6079b89cb967","block_type":"box","text":"i.e.","page_number":198,"box":{"x":332,"y":478,"width":21,"height":9}},{"id":"f2768740-6ff5-44a9-a00b-1b07ef2b3c6d","block_type":"box","text":", partnerships that are traded on an established securities market or","page_number":198,"box":{"x":356,"y":478,"width":507,"height":11}},{"id":"b7ae414a-267d-47a1-8e47-454ac48f37d1","block_type":"box","text":"tradable on a secondary market, other than partnerships that derive 90% of their income from interest,","page_number":198,"box":{"x":116,"y":493,"width":764,"height":12}},{"id":"5c09aa94-9b57-479f-9702-f6a651c63f7c","block_type":"box","text":"dividends, capital gains and other traditionally permitted mutual fund income). For purposes of this","page_number":198,"box":{"x":116,"y":508,"width":734,"height":13}},{"id":"1d007b72-8f60-4e7e-be83-299af322b3f0","block_type":"box","text":"restriction, the Municipal Funds generally will regard each state and each of its political subdivisions,","page_number":198,"box":{"x":117,"y":524,"width":749,"height":12}},{"id":"1646e57f-f8b5-4585-9433-235aedb96ddc","block_type":"box","text":"agencies or instrumentalities and each multi-state agency of which the state is a member as a","page_number":198,"box":{"x":116,"y":539,"width":703,"height":13}},{"id":"d438f544-93a6-43b2-8d76-a0bb0d95f52b","block_type":"box","text":"separate issuer. Each public authority that issues securities on behalf of a private entity generally will","page_number":198,"box":{"x":116,"y":555,"width":754,"height":12}},{"id":"dac7ced3-8cbf-45d8-a8f0-b48f0883cd77","block_type":"box","text":"also be regarded as a separate issuer, except that if the security is backed only by the assets and","page_number":198,"box":{"x":116,"y":570,"width":731,"height":13}},{"id":"22f9a78c-b9df-496e-bbdb-5e25f90bb33a","block_type":"box","text":"revenues of a non-government entity, then the entity with the ultimate responsibility for the payment of","page_number":198,"box":{"x":117,"y":586,"width":762,"height":12}},{"id":"07d40353-513e-4e50-b313-d8d773c2c667","block_type":"box","text":"interest and principal may be regarded as the sole issuer.","page_number":198,"box":{"x":117,"y":602,"width":431,"height":12}},{"id":"8ef6e7ad-e6be-4cfa-9164-d8f94eabac05","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10%","page_number":198,"box":{"x":117,"y":633,"width":759,"height":13}},{"id":"120facbd-9962-4afa-99aa-fa4d7e95a927","block_type":"box","text":"and 25% diversification requirements of the Code discussed above and the securities of each foreign","page_number":198,"box":{"x":116,"y":649,"width":755,"height":12}},{"id":"0cdc239e-072f-4728-b960-b1867f08e5f6","block_type":"box","text":"government issuer are considered to be obligations of a single issuer. These tax-related limitations","page_number":198,"box":{"x":116,"y":664,"width":732,"height":13}},{"id":"4bdb1eee-c66b-4515-84b6-579e3f834570","block_type":"box","text":"may be changed by the Directors of a Fund to the extent necessary to comply with changes to the U.S.","page_number":198,"box":{"x":117,"y":680,"width":763,"height":12}},{"id":"663b302e-c561-4fe8-8f6f-42f432bb6f3c","block_type":"box","text":"federal tax requirements. A Fund that is “diversified” under the Investment Company Act must satisfy","page_number":198,"box":{"x":116,"y":695,"width":748,"height":13}},{"id":"9dc2618f-51ce-434a-8a58-48654a875a2d","block_type":"box","text":"the foregoing 5% and 10% requirements with respect to 75% of its total assets.","page_number":198,"box":{"x":116,"y":711,"width":586,"height":12}},{"id":"7af9a5da-3005-421c-82d1-9a139ca2428d","block_type":"box","text":"M","page_number":198,"box":{"x":310,"y":760,"width":12,"height":9}},{"id":"cd0200ec-2762-47b3-92f8-0253242d02ec","block_type":"box","text":"ANAGEMENT","page_number":198,"box":{"x":323,"y":762,"width":87,"height":7}},{"id":"63ac0156-ab98-4997-95f6-b08087f500fc","block_type":"box","text":"AND","page_number":198,"box":{"x":415,"y":762,"width":29,"height":7}},{"id":"776d4ce0-9100-4a19-b791-31e343755abd","block_type":"box","text":"O","page_number":198,"box":{"x":450,"y":759,"width":12,"height":10}},{"id":"7087530c-817a-4b43-bfea-373a49d39f6a","block_type":"box","text":"THER","page_number":198,"box":{"x":463,"y":762,"width":37,"height":7}},{"id":"d2bacd18-7b07-4894-850d-4f07c40b0f0d","block_type":"box","text":"S","page_number":198,"box":{"x":505,"y":759,"width":10,"height":10}},{"id":"a788d75e-ac09-45bb-9f01-ed765df2c8de","block_type":"box","text":"ERVICE","page_number":198,"box":{"x":517,"y":762,"width":49,"height":7}},{"id":"bce08847-a1ab-40ed-9e38-12316ee750ea","block_type":"box","text":"A","page_number":198,"box":{"x":571,"y":760,"width":12,"height":9}},{"id":"75fae0a9-581a-4f07-ba76-d27e12e536a8","block_type":"box","text":"RRANGEMENTS","page_number":198,"box":{"x":584,"y":762,"width":106,"height":7}},{"id":"e4d9a2f4-2fea-4786-a522-3fe91332637a","block_type":"box","text":"Directors and Officers","page_number":198,"box":{"x":117,"y":791,"width":175,"height":10}},{"id":"07413c2c-1939-493c-ae08-2670ac02e311","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and","page_number":198,"box":{"x":116,"y":815,"width":730,"height":12}},{"id":"1716759f-7383-424a-bab9-6a3747410b1e","block_type":"box","text":"‘— Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’","page_number":198,"box":{"x":117,"y":831,"width":760,"height":12}},{"id":"dd287667-0749-4aa6-8fec-89a41687e3ae","block_type":"box","text":"‘— Share Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI","page_number":198,"box":{"x":117,"y":846,"width":754,"height":12}},{"id":"74b70c1a-7380-4309-b53b-48ed9cbfc2a6","block_type":"box","text":"for biographical and certain other information relating to the Directors and officers of your Fund,","page_number":198,"box":{"x":116,"y":862,"width":713,"height":12}},{"id":"25d6f1c3-38d8-4b75-92f4-b725965ca173","block_type":"box","text":"including Directors’ compensation.","page_number":198,"box":{"x":117,"y":877,"width":260,"height":12}},{"id":"d27f437b-ee65-449d-bf41-f38a3ad4a7b8","block_type":"box","text":"II-104","page_number":198,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"da24bef1-e078-4b1e-9bfc-6344fb594c97","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":198,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3b7aef17-5f85-40f9-b2cf-05660ebf61cc","block_type":"box","text":"Management Arrangements","page_number":199,"box":{"x":117,"y":87,"width":225,"height":12}},{"id":"b13bd05e-e3f5-4b92-8594-8a0025bb2fc1","block_type":"box","text":"Management Services.","page_number":199,"box":{"x":116,"y":110,"width":170,"height":12}},{"id":"57c28c47-32d0-4a88-b763-035571ec88bc","block_type":"box","text":"The Manager provides each Fund with investment advisory and management","page_number":199,"box":{"x":288,"y":110,"width":585,"height":12}},{"id":"6c211fa3-54e2-4edb-bc61-b4c6cde3c61b","block_type":"box","text":"services. Subject to the oversight of the Board of Directors, the Manager is responsible for the actual","page_number":199,"box":{"x":116,"y":126,"width":752,"height":12}},{"id":"f5444c39-c428-4367-8b87-55b4595bfb37","block_type":"box","text":"management of a Fund’s portfolio and reviews the Fund’s holdings in light of its own research analysis","page_number":199,"box":{"x":117,"y":141,"width":764,"height":12}},{"id":"83c69ade-1190-451c-9e53-442b51f14b37","block_type":"box","text":"and that from other relevant sources. The responsibility for making decisions to buy, sell or hold a","page_number":199,"box":{"x":116,"y":157,"width":729,"height":12}},{"id":"11cadd57-3d3c-4369-bcdb-0a112b8fb7d0","block_type":"box","text":"particular security rests with the Manager. The Manager performs certain of the other administrative","page_number":199,"box":{"x":117,"y":172,"width":745,"height":12}},{"id":"eaee5943-1243-42fe-ba15-f429a98965cf","block_type":"box","text":"services and provides all the office space, facilities, equipment and necessary personnel for","page_number":199,"box":{"x":116,"y":188,"width":685,"height":12}},{"id":"60e7cb3e-dd12-4fe1-8bc5-9fde31831e76","block_type":"box","text":"management of each Fund.","page_number":199,"box":{"x":117,"y":203,"width":209,"height":12}},{"id":"b614812a-730d-4d3e-a2e4-1571db6073d2","block_type":"box","text":"Each Feeder Fund invests all or a portion of its assets in shares of a Master Portfolio. To the extent a","page_number":199,"box":{"x":117,"y":234,"width":755,"height":12}},{"id":"727749cd-2e83-46f7-85ad-296f8084a431","block_type":"box","text":"Feeder Fund invests all of its assets in a Master Portfolio, it does not invest directly in portfolio","page_number":199,"box":{"x":117,"y":250,"width":702,"height":12}},{"id":"5cb2a3cf-f3af-4d5c-bdf1-17b98faef5b4","block_type":"box","text":"securities and does not require management services. For such Feeder Funds, portfolio management","page_number":199,"box":{"x":116,"y":265,"width":760,"height":12}},{"id":"4540988c-26cb-4446-b40e-5274e6ac40b8","block_type":"box","text":"occurs at the Master Portfolio level.","page_number":199,"box":{"x":116,"y":281,"width":267,"height":9}},{"id":"94306b6c-3a69-4856-9ac3-5c13ebc0b059","block_type":"box","text":"Management Fee.","page_number":199,"box":{"x":116,"y":312,"width":132,"height":12}},{"id":"215f42e5-0d66-4eb0-918b-da2da71ce5d4","block_type":"box","text":"Each Fund has entered into a Management A","page_number":199,"box":{"x":250,"y":312,"width":326,"height":12}},{"id":"f7976100-7f0d-4e57-8901-a60e285c2d8b","block_type":"box","text":"Agreement with the Manager pursuant to","page_number":199,"box":{"x":576,"y":312,"width":304,"height":12}},{"id":"88e910e2-ebfc-4070-b676-73973978d7e3","block_type":"box","text":"which the Manager receives for its services to","page_number":199,"box":{"x":116,"y":327,"width":337,"height":12}},{"id":"ebe26688-67e7-42e0-9af0-57621555e2f9","block_type":"box","text":"the Fund monthly compensation at an annual rate based","page_number":199,"box":{"x":453,"y":327,"width":417,"height":12}},{"id":"9418fa01-f3fd-442d-82fa-b8de05d0bc4d","block_type":"box","text":"on the average daily net assets of the Fund. For info","page_number":199,"box":{"x":116,"y":343,"width":380,"height":12}},{"id":"efdfccd9-d251-4d31-9418-4cd2a89532cc","block_type":"box","text":"rmation regarding the fees paid by your Fund to the","page_number":199,"box":{"x":497,"y":343,"width":378,"height":12}},{"id":"0f3a593d-6478-40f9-9829-5b2d7931a4dd","block_type":"box","text":"Manager for the Fund’s last three fiscal years or","page_number":199,"box":{"x":117,"y":358,"width":352,"height":12}},{"id":"22c7bb4e-8e13-44ee-9082-06a030f7495c","block_type":"box","text":"other applicable periods, see “Management, Advisory","page_number":199,"box":{"x":469,"y":358,"width":393,"height":12}},{"id":"e59e3794-6dec-4e64-a09e-9146d4c397a4","block_type":"box","text":"and Other Service Arrangements — Management A","page_number":199,"box":{"x":116,"y":374,"width":368,"height":12}},{"id":"929cfa98-e7c1-4833-b55b-dfc537495073","block_type":"box","text":"Agreement” or “Management and Advisory","page_number":199,"box":{"x":484,"y":374,"width":316,"height":12}},{"id":"6a06fae6-09f9-47e5-ae98-175602e75b7f","block_type":"box","text":"Arrangements,” as applicable, in Part I of each Fund’s SAI.","page_number":199,"box":{"x":116,"y":389,"width":433,"height":12}},{"id":"0bcc5c48-ac83-41b0-bf74-9c254d4321ea","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to","page_number":199,"box":{"x":117,"y":420,"width":757,"height":12}},{"id":"bc5f5bff-a180-4444-bf50-37877376554f","block_type":"box","text":"provide management services and to pay all compensation of and furnish office space for officers and","page_number":199,"box":{"x":117,"y":436,"width":760,"height":12}},{"id":"0564c3cc-f042-443f-96a2-50b1562a1e53","block_type":"box","text":"employees of a Fund in connection with investment and economic research, trading and investment","page_number":199,"box":{"x":116,"y":451,"width":745,"height":12}},{"id":"a37fe0ac-4183-4956-8751-3bff7c19fb44","block_type":"box","text":"management of the Fund, as well as the fees of all Directors of the Fund who are interested persons of","page_number":199,"box":{"x":117,"y":467,"width":768,"height":12}},{"id":"c9b5d132-e41e-410d-a243-352c4b9099a3","block_type":"box","text":"the Fund. Each Fund pays all other expenses incurred in the operation of that Fund, including among","page_number":199,"box":{"x":116,"y":482,"width":756,"height":12}},{"id":"b76a73ad-a49e-47fd-948c-7b74d42cce73","block_type":"box","text":"other things: taxes; expenses for legal and auditing services; costs of preparing, printing and mailing","page_number":199,"box":{"x":116,"y":498,"width":749,"height":12}},{"id":"5b828a80-b3b4-4e61-aea3-e50614aafb77","block_type":"box","text":"proxies, shareholder reports, prospectuses and statements of additional information, except to the","page_number":199,"box":{"x":117,"y":513,"width":732,"height":12}},{"id":"5814d1d1-e670-4a34-90f9-1ff08f34b06a","block_type":"box","text":"extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the custodian and","page_number":199,"box":{"x":116,"y":529,"width":760,"height":12}},{"id":"24937f08-cc83-491e-93a0-4e46598129db","block_type":"box","text":"sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":199,"box":{"x":116,"y":544,"width":766,"height":12}},{"id":"e6c9f9bf-ebc5-4e97-9c3b-5ad844028342","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are","page_number":199,"box":{"x":116,"y":560,"width":761,"height":12}},{"id":"694fe10c-4033-4978-916a-05db63e88d32","block_type":"box","text":"not interested persons of a Fund as defined in the Investment Company Act; accounting and pricing","page_number":199,"box":{"x":117,"y":575,"width":745,"height":12}},{"id":"d3345881-8b37-4592-8716-811055516360","block_type":"box","text":"costs (including the daily calculations of NAV); insurance; interest; brokerage costs; litigation and other","page_number":199,"box":{"x":116,"y":591,"width":767,"height":12}},{"id":"5d984c70-a420-4ad1-9528-aa04fdc0bcb3","block_type":"box","text":"extraordinary or non-recurring expenses; and other expenses properly payable by the Fund. Certain","page_number":199,"box":{"x":116,"y":606,"width":747,"height":12}},{"id":"f4d0a955-5595-4f55-8017-e90debd20be3","block_type":"box","text":"accounting services are provided to each Fund by State Street Bank and Trust Company (“State","page_number":199,"box":{"x":116,"y":622,"width":720,"height":12}},{"id":"fd699163-e855-459a-bc65-2131846d17ac","block_type":"box","text":"Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”) or JPMorgan Chase Bank, N.A.","page_number":199,"box":{"x":116,"y":637,"width":746,"height":12}},{"id":"3de32cc3-f36c-434b-9c8e-7fee0a0efe21","block_type":"box","text":"(“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and each","page_number":199,"box":{"x":117,"y":653,"width":761,"height":12}},{"id":"0905e819-b055-4988-86da-6e38d1b0f2c3","block_type":"box","text":"Fund. Each Fund pays a fee for these services. In addition, the Manager provides certain accounting","page_number":199,"box":{"x":117,"y":668,"width":746,"height":12}},{"id":"9e516f07-53b4-4bea-86fb-c9d1d69a1405","block_type":"box","text":"services to each Fund and the Fund pays the Manager a fee for such services. The Distributor pays","page_number":199,"box":{"x":116,"y":684,"width":740,"height":12}},{"id":"32971c21-de92-4bb7-840f-c2c7c1d0ad5e","block_type":"box","text":"certain promotional expenses of the Funds incurred in connection with the offering of shares of the","page_number":199,"box":{"x":116,"y":699,"width":731,"height":13}},{"id":"7266c46c-e10b-4f75-9348-4f1c8d6cd556","block_type":"box","text":"Funds. Certain expenses are financed by each Fund pursuant to distribution plans in compliance with","page_number":199,"box":{"x":117,"y":715,"width":751,"height":12}},{"id":"4c2d88b5-39de-4388-873c-53776e295a10","block_type":"box","text":"Rule 12b-1 under the Investment Company Act. See “Purchase of Shares — Distribution and/or","page_number":199,"box":{"x":117,"y":730,"width":710,"height":13}},{"id":"423b7f59-3188-4a06-bb82-b19bb93f541e","block_type":"box","text":"Shareholder Servicing Plans.”","page_number":199,"box":{"x":116,"y":746,"width":221,"height":12}},{"id":"b1185c2c-843a-4cf0-9cfa-150154b45229","block_type":"box","text":"Sub-Advisory Fee.","page_number":199,"box":{"x":117,"y":777,"width":135,"height":12}},{"id":"ce65e186-7c5b-4c0f-af3f-9b2a563d345a","block_type":"box","text":"The Manager of certain Funds has entered into one or more sub-advisory","page_number":199,"box":{"x":259,"y":777,"width":546,"height":12}},{"id":"ee7c2c0f-8bfa-4601-85a7-f6cdd059c9b7","block_type":"box","text":"agreements (the “Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each","page_number":199,"box":{"x":116,"y":792,"width":743,"height":13}},{"id":"47f1c34d-6427-4fbf-81d2-36664bbe5fa1","block_type":"box","text":"such Fund’s Prospectus (the “Sub-Adviser”) pursuant to which the Sub-Adviser provides sub-advisory","page_number":199,"box":{"x":116,"y":808,"width":755,"height":12}},{"id":"942046e7-e32a-472f-b5d6-2d7b2046d69f","block_type":"box","text":"services to the Manager with respect to the Fund.","page_number":199,"box":{"x":116,"y":824,"width":367,"height":12}},{"id":"df413b7d-36a1-4ce5-970d-b3b192c3c9c8","block_type":"box","text":"Organization of the Manager.","page_number":199,"box":{"x":117,"y":854,"width":215,"height":13}},{"id":"61228a3e-2f12-4c9a-bfe5-da37e96ba436","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and","page_number":199,"box":{"x":334,"y":854,"width":519,"height":13}},{"id":"e57d6d44-fc70-4540-ba9a-5fba06c1882f","block_type":"box","text":"BlackRock Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned","page_number":199,"box":{"x":117,"y":870,"width":732,"height":12}},{"id":"89e185ad-044c-4552-a043-e4e740d20a9f","block_type":"box","text":"II-105","page_number":199,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"a1668f91-9169-49bd-a6da-c44666c283f7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":199,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0a0e4d53-3e1d-488a-a0e8-078d60dacc1e","block_type":"box","text":"subsidiary of BlackRock, Inc. BlackRock, Inc., through its subsidiaries and divisions, provides","page_number":200,"box":{"x":116,"y":87,"width":697,"height":12}},{"id":"d5ed2059-04fa-40e1-b712-d1d01d355df6","block_type":"box","text":"(i) investment management services to individuals and institutional investors through separate account","page_number":200,"box":{"x":117,"y":102,"width":765,"height":13}},{"id":"628184ca-3151-404b-b7fd-d86dc936a528","block_type":"box","text":"management, non-discretionary advisory programs and commingled investment vehicles; (ii) risk","page_number":200,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"60ea43ab-a6d7-4638-a137-6ae1de1a25e1","block_type":"box","text":"management services, investment accounting and trade processing tools; (iii) transition management","page_number":200,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"cd97471a-a19a-4743-83e2-bc7c3324ccc4","block_type":"box","text":"services, and (iv) securities lending services.","page_number":200,"box":{"x":116,"y":149,"width":337,"height":12}},{"id":"aaa45524-ed61-46bf-b58a-256fca978928","block_type":"box","text":"Duration and Termination.","page_number":200,"box":{"x":116,"y":180,"width":193,"height":10}},{"id":"5e797918-a3ef-4b16-84dc-41ef8bf9cae2","block_type":"box","text":"Unless earlier terminated as described below, each Management","page_number":200,"box":{"x":310,"y":180,"width":494,"height":12}},{"id":"2688018c-9258-4831-92ac-dbb6e7da5448","block_type":"box","text":"Agreement and each Sub-Advisory Agreement will remain in effect for an initial two year period and","page_number":200,"box":{"x":116,"y":196,"width":743,"height":12}},{"id":"0fc30bbf-a628-46b1-9775-a7b568fdc077","block_type":"box","text":"from year to year thereafter if approved annually (a) by the Board of Directors or by a vote of a majority","page_number":200,"box":{"x":116,"y":211,"width":769,"height":12}},{"id":"519a926f-997f-48c8-86a5-206016884909","block_type":"box","text":"of the outstanding voting securities of a Fund and (b) by a majority of the Directors of the Fund who are","page_number":200,"box":{"x":116,"y":227,"width":771,"height":12}},{"id":"8dad488c-5631-4162-9c42-a0cc1ccecf6d","block_type":"box","text":"not parties to such agreement or interested persons (as defined in the Investment Company Act) of","page_number":200,"box":{"x":117,"y":242,"width":740,"height":12}},{"id":"63ddc124-4a54-4ecd-87dc-3a74eca3439f","block_type":"box","text":"any such party. 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The Distribution Agreements obligate the Distributor to pay certain expenses in","page_number":201,"box":{"x":116,"y":673,"width":697,"height":12}},{"id":"a5e5c3d1-1e04-42bf-bc8d-9c72eab97d80","block_type":"box","text":"connection with the offering of each class of shares of the Funds. After the prospectuses, statements","page_number":201,"box":{"x":116,"y":689,"width":749,"height":12}},{"id":"8edbc5cd-7a64-4c1e-bc8f-bab22f9b15b3","block_type":"box","text":"of additional information and periodic reports have been prepared, set in type and mailed to","page_number":201,"box":{"x":116,"y":704,"width":678,"height":12}},{"id":"31c44968-483d-407f-8f5e-ee0628d5f03a","block_type":"box","text":"shareholders, the Distributor pays for the printing and distribution of these documents used in","page_number":201,"box":{"x":116,"y":720,"width":692,"height":12}},{"id":"ac32d5d0-5243-4d41-beed-2ee03e4b9471","block_type":"box","text":"connection with the offering to dealers and investors. The Distributor also pays for other supplementary","page_number":201,"box":{"x":116,"y":735,"width":766,"height":12}},{"id":"fc745327-d208-478c-85a8-a7ef7953d11b","block_type":"box","text":"sales literature and advertising costs. Each Distribution Agreement is subject to the same renewal","page_number":201,"box":{"x":116,"y":751,"width":726,"height":12}},{"id":"d6df4658-b6d1-484d-93b3-0a551ef22285","block_type":"box","text":"requirements and termination provisions as the Management Agreement described above.","page_number":201,"box":{"x":117,"y":766,"width":670,"height":12}},{"id":"7593a132-5d8a-4743-a82f-862a41f21ea6","block_type":"box","text":"Code of Ethics","page_number":201,"box":{"x":116,"y":794,"width":117,"height":10}},{"id":"6be93961-05e8-47ee-9b12-32fb9001d1a7","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant","page_number":201,"box":{"x":117,"y":816,"width":764,"height":12}},{"id":"2f837dfb-4cdf-4000-a453-c47c59053014","block_type":"box","text":"to Rule 17j-1 under the Investment Company Act. 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The Funds, BlackRock","page_number":208,"box":{"x":116,"y":803,"width":752,"height":12}},{"id":"914470b4-19f4-4c74-89e1-f125eca8c0a4","block_type":"box","text":"and their affiliates do not receive any compensation or other consideration in connection with such","page_number":208,"box":{"x":116,"y":818,"width":728,"height":12}},{"id":"ca0dcde3-541b-4449-9e35-8fe21d63c347","block_type":"box","text":"arrangements.","page_number":208,"box":{"x":116,"y":834,"width":113,"height":12}},{"id":"206a9051-fc2a-47c2-80d1-eecb5efaac79","block_type":"box","text":"The Funds and the Manager monitor, to the extent possible, the use of Confidential Information by the","page_number":208,"box":{"x":116,"y":861,"width":762,"height":12}},{"id":"aa19c7c4-ce01-4a8b-ae24-ed88a95cb7ba","block_type":"box","text":"individuals or firms to which it has been disclosed. To do so, in addition to the requirements of any","page_number":208,"box":{"x":117,"y":877,"width":732,"height":12}},{"id":"f2ce626a-ab17-4db6-9d6c-3803c11e9307","block_type":"box","text":"II-114","page_number":208,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ddbd47e0-83e7-4497-875d-7af482ea0a00","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":208,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c29ae259-65b0-425f-9b23-e3be2473d1b9","block_type":"box","text":"applicable confidentiality agreement and/or the terms and conditions of the Fund’s and Manager’s","page_number":209,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"9d0fdf60-29b4-45be-95d4-13071d4f7dbf","block_type":"box","text":"Codes of Ethics — all of which require persons or entities in possession of Confidential Information to","page_number":209,"box":{"x":117,"y":102,"width":756,"height":12}},{"id":"bc0b6cd8-f08a-48cf-9dae-7c0501b67034","block_type":"box","text":"keep such information confidential and not to trade on such information for their own benefit — the","page_number":209,"box":{"x":117,"y":118,"width":734,"height":12}},{"id":"ca7f7881-bca8-4e05-a5a0-59476fbf8dc6","block_type":"box","text":"Manager’s compliance personnel under the supervision of the Fund’s CCO, monitor the Manager’s","page_number":209,"box":{"x":117,"y":134,"width":737,"height":12}},{"id":"ee63fd48-a618-4d9a-ba4d-b433202133ae","block_type":"box","text":"securities trading desks to determine whether individuals or firms who have received Confidential","page_number":209,"box":{"x":116,"y":149,"width":726,"height":12}},{"id":"6b2c02cf-976c-4f9a-96f0-5272d5d86366","block_type":"box","text":"Information have made any trades on the basis of that information. 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(collectively referred to in this section as “BlackRock”) and their","page_number":209,"box":{"x":116,"y":314,"width":707,"height":12}},{"id":"a1bef3b6-b155-4df0-bce1-936cef796d46","block_type":"box","text":"respective directors, officers or employees, with respect to the Funds and/or other accounts managed","page_number":209,"box":{"x":116,"y":329,"width":760,"height":12}},{"id":"59cc99b3-8459-4bd4-bcee-c9ad88010d4f","block_type":"box","text":"by BlackRock, may give rise to actual or perceived conflicts of interest such as those described below.","page_number":209,"box":{"x":116,"y":345,"width":764,"height":12}},{"id":"b557d449-9fcb-4c52-a23f-9b139ccf7b6a","block_type":"box","text":"BlackRock is one of the world’s largest asset management firms. BlackRock, its subsidiaries and their","page_number":209,"box":{"x":117,"y":377,"width":759,"height":12}},{"id":"3876b0f7-48f9-46a9-868d-d2f87a7e94ba","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel","page_number":209,"box":{"x":117,"y":392,"width":736,"height":12}},{"id":"8cd03c09-8d10-4813-8154-20a37fffc5d4","block_type":"box","text":"who may be involved in the investment activities and business operations of a Fund, are engaged","page_number":209,"box":{"x":116,"y":408,"width":729,"height":12}},{"id":"57b470b6-1f99-4c1e-aef4-7f1c953704d6","block_type":"box","text":"worldwide in businesses, including managing equities, fixed income securities, cash and alternative","page_number":209,"box":{"x":116,"y":423,"width":742,"height":12}},{"id":"0b53a5c2-0be7-4547-bec3-e2c289a41b78","block_type":"box","text":"investments, and other financial services, and have interests other than that of managing the Funds.","page_number":209,"box":{"x":117,"y":439,"width":748,"height":12}},{"id":"25474f2f-be58-476e-9c36-cdd4dfd6bed2","block_type":"box","text":"These are considerations of which investors in a Fund should be aware, and which may cause conflicts","page_number":209,"box":{"x":116,"y":454,"width":771,"height":12}},{"id":"dfd2b784-af03-422b-9060-283b1e4e3464","block_type":"box","text":"of interest that could disadvantage a Fund and its shareholders.","page_number":209,"box":{"x":116,"y":470,"width":479,"height":12}},{"id":"cd24209d-910f-41b7-900e-b095e9eba11a","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":209,"box":{"x":116,"y":502,"width":749,"height":12}},{"id":"eb2dabc1-fcf5-4313-889b-5c1c157a4090","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be","page_number":209,"box":{"x":117,"y":518,"width":771,"height":12}},{"id":"b944caa3-84c3-4f02-9c8b-f531893ae504","block_type":"box","text":"purchased or sold by a Fund.","page_number":209,"box":{"x":117,"y":533,"width":221,"height":12}},{"id":"04d2846d-3259-45f0-aa02-cacfe99975af","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or","page_number":209,"box":{"x":117,"y":565,"width":754,"height":12}},{"id":"6fcea434-ba21-40bb-a732-c134b8a20fd1","block_type":"box","text":"funds (including separate accounts and other funds and collective investment vehicles) that have","page_number":209,"box":{"x":116,"y":581,"width":724,"height":12}},{"id":"3fc5ee7c-27d5-4861-803a-5226e596b4ed","block_type":"box","text":"investment objectives identical or similar to those of a Fund and/or that engage in transactions in the","page_number":209,"box":{"x":117,"y":596,"width":749,"height":12}},{"id":"ff903ac2-f3a3-4022-86de-3d83aa1f5622","block_type":"box","text":"same types of securities, currencies and instruments as the Fund. 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As such,","page_number":209,"box":{"x":117,"y":674,"width":687,"height":12}},{"id":"22c6cae1-49c4-4cd0-a1f3-0e4a1eec4e98","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and","page_number":209,"box":{"x":117,"y":689,"width":709,"height":12}},{"id":"8316abcc-6c0d-408b-bd1d-f7ca98c81b1a","block_type":"box","text":"instruments in which a Fund invests.","page_number":209,"box":{"x":117,"y":705,"width":268,"height":9}},{"id":"c02432e8-75f1-4a87-b59b-e23bf3dfbf88","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in","page_number":209,"box":{"x":116,"y":737,"width":746,"height":12}},{"id":"dfaa05e7-c184-4ad6-974b-813554cc0c46","block_type":"box","text":"which a Fund invests, which could have an adverse impact on a Fund’s performance. 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While not expected, it is possible that a recipient of portfolio holdings information for such","page_number":209,"box":{"x":116,"y":877,"width":769,"height":13}},{"id":"d6d231b7-d522-49fa-9ed3-0dcdbbd93bb5","block_type":"box","text":"II-115","page_number":209,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"95e4fa3f-bc12-4107-9b93-319a21d9970c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":209,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fd1c635e-dccc-4516-b38e-55716ae31ee2","block_type":"box","text":"an investment vehicle could cause harm to a Fund that is managed in an identical or substantially","page_number":210,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"fbb8a47d-cfde-4ca8-a78e-3cca7df6c0a9","block_type":"box","text":"similar manner, including by trading ahead of or against such Fund based on the information received.","page_number":210,"box":{"x":116,"y":102,"width":764,"height":13}},{"id":"1af426ed-e3ad-4c49-9b27-24f84cc8854c","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the","page_number":210,"box":{"x":116,"y":134,"width":757,"height":12}},{"id":"9ce16401-96b8-4bc1-b8c1-169ee5e7ff25","block_type":"box","text":"assets actually purchased or sold may be allocated among the accounts on a basis determined in its","page_number":210,"box":{"x":116,"y":149,"width":751,"height":12}},{"id":"befe13cf-7285-4e19-b909-38a7fb4470db","block_type":"box","text":"good faith discretion to be equitable. In some cases, this system may adversely affect the size or price","page_number":210,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"3d1b16be-4f5c-4003-9f52-4eee26fbdac6","block_type":"box","text":"of the assets purchased or sold for a Fund. In addition, transactions in investments by one or more","page_number":210,"box":{"x":116,"y":180,"width":737,"height":12}},{"id":"33386d29-320d-415b-b672-feb91a9862d0","block_type":"box","text":"other accounts managed by BlackRock may have the effect of diluting or otherwise disadvantaging the","page_number":210,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"fec8c723-ad72-42e8-af66-f9caac864866","block_type":"box","text":"values, prices or investment strategies of a Fund, particularly, but not limited to, with respect to small","page_number":210,"box":{"x":116,"y":211,"width":752,"height":12}},{"id":"398cc66a-e399-47fa-bfb7-83b91df2a68e","block_type":"box","text":"capitalization, emerging market or less liquid strategies. This may occur with respect to BlackRock","page_number":210,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"f80669b4-93fd-4c2a-88ec-038d709e8c45","block_type":"box","text":"advised accounts when investment decisions regarding a Fund are based on research or other","page_number":210,"box":{"x":116,"y":242,"width":709,"height":12}},{"id":"0e9ebdf9-3af1-4acf-986b-f46b02c72b91","block_type":"box","text":"information that is also used to support decisions for other accounts. When BlackRock implements a","page_number":210,"box":{"x":117,"y":258,"width":749,"height":11}},{"id":"fdd94aa3-9389-47e3-89e2-3b1648ef507c","block_type":"box","text":"portfolio decision or strategy on behalf of another account ahead of, or contemporaneously with, similar","page_number":210,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"92de452d-61b1-49d5-bdd4-934b293385ea","block_type":"box","text":"decisions or strategies for a Fund, market impact, liquidity constraints, or other factors could result in","page_number":210,"box":{"x":116,"y":289,"width":751,"height":12}},{"id":"6188639f-01d3-48e4-ae8b-c699b4d877c7","block_type":"box","text":"the Fund receiving less favorable trading results and the costs of implementing such decisions or","page_number":210,"box":{"x":116,"y":304,"width":725,"height":12}},{"id":"8e8c3da6-cb7e-424c-8fc8-3fc5e957d812","block_type":"box","text":"strategies could be increased or the Fund could otherwise be disadvantaged. BlackRock may, in","page_number":210,"box":{"x":116,"y":320,"width":721,"height":12}},{"id":"1b401cb7-c5d7-4889-b162-e5794a10fb72","block_type":"box","text":"certain cases, elect to implement internal policies and procedures designed to limit such","page_number":210,"box":{"x":116,"y":335,"width":658,"height":12}},{"id":"09116596-91f2-4edb-8e67-8f50408169fb","block_type":"box","text":"consequences, which may cause a Fund to be unable to engage in certain activities, including","page_number":210,"box":{"x":116,"y":351,"width":703,"height":12}},{"id":"889c9fa9-6150-453a-ae5d-f153d47b03a0","block_type":"box","text":"purchasing or disposing of securities, when it might otherwise be desirable for it to do so. Conflicts may","page_number":210,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"a543dda4-4fee-4dd0-9a3d-801681ef1c18","block_type":"box","text":"also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":210,"box":{"x":116,"y":382,"width":721,"height":12}},{"id":"e98f1560-b7da-4edc-9ba4-659ddc413d36","block_type":"box","text":"BlackRock. For example, the sale of a long position or","page_number":210,"box":{"x":117,"y":397,"width":406,"height":12}},{"id":"1ecca0e6-8803-4698-a75c-757360d45e67","block_type":"box","text":"establishment of a short position by a Fund may","page_number":210,"box":{"x":523,"y":397,"width":362,"height":12}},{"id":"9160637f-e439-4485-93c9-5c42f7d72d08","block_type":"box","text":"impair the price of the same security sold short by (and therefore benefit) BlackRock or its other","page_number":210,"box":{"x":117,"y":413,"width":714,"height":12}},{"id":"58807c2d-2955-40f6-a6de-705d7d84266d","block_type":"box","text":"accounts or funds, and the purchase of a security or covering of a short position in a security by a Fund","page_number":210,"box":{"x":116,"y":428,"width":772,"height":12}},{"id":"08a133f1-fdc8-491a-9a2d-a97ccfe41e5e","block_type":"box","text":"may increase the price of the same security held by (and therefore benefit) BlackRock or its other","page_number":210,"box":{"x":117,"y":444,"width":727,"height":12}},{"id":"b85cbcce-f7a9-43e9-bf7c-d546d8b40a46","block_type":"box","text":"accounts or funds.","page_number":210,"box":{"x":116,"y":459,"width":142,"height":10}},{"id":"5cc7b1b6-fab2-4a37-8397-741838ca6567","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may","page_number":210,"box":{"x":117,"y":490,"width":747,"height":12}},{"id":"34b1431e-51ab-4fea-844a-233087b91f88","block_type":"box","text":"invest in or extend credit to different parts of the capital structure of a single issuer. BlackRock may","page_number":210,"box":{"x":117,"y":506,"width":739,"height":12}},{"id":"bd7f92ac-f41d-4856-bfc0-7c1aeadf0462","block_type":"box","text":"pursue rights, provide advice or engage in other activities, or refrain from pursuing rights, providing","page_number":210,"box":{"x":117,"y":521,"width":737,"height":12}},{"id":"4a1c6df8-1cb7-40ae-8000-369fed28300d","block_type":"box","text":"advice or engaging in other activities, on behalf of other clients with respect to an issuer in which a","page_number":210,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"d3493ddc-82d7-4bdc-b377-3bf5e4367dc0","block_type":"box","text":"Fund has invested, and such actions (or refraining from action) may have a material adverse effect on","page_number":210,"box":{"x":117,"y":552,"width":761,"height":12}},{"id":"6485f794-e3b7-41e2-b595-2fa98bf4f6fe","block_type":"box","text":"the Fund. In situations in which clients of BlackRock (including the Funds) hold positions in multiple","page_number":210,"box":{"x":116,"y":568,"width":740,"height":12}},{"id":"7d87aae9-e03e-4675-94f6-c405f4a108a8","block_type":"box","text":"parts of the capital structure of an issuer, BlackRock may not pursue certain actions or remedies that","page_number":210,"box":{"x":117,"y":583,"width":752,"height":12}},{"id":"e262a35e-9d5f-4a8a-9eef-3ac6b0cdf5a6","block_type":"box","text":"may be available to a Fund, as a result of legal and regulatory requirements or otherwise. BlackRock","page_number":210,"box":{"x":117,"y":599,"width":752,"height":12}},{"id":"a398d98d-c249-46d7-a695-b3c9a700a4e0","block_type":"box","text":"addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":210,"box":{"x":116,"y":614,"width":722,"height":12}},{"id":"8103ec20-32f2-43a4-89df-94a68491312c","block_type":"box","text":"particular situations. For example, BlackRock may determine to rely on information barriers between","page_number":210,"box":{"x":117,"y":630,"width":748,"height":12}},{"id":"4ca7b7b7-889a-4c14-b2da-74028fa0156b","block_type":"box","text":"different business units or portfolio management teams. BlackRock may also determine to rely on the","page_number":210,"box":{"x":116,"y":645,"width":757,"height":12}},{"id":"c7c0619c-b0ef-4097-9468-28245761ed8b","block_type":"box","text":"actions of similarly situated holders of loans or securities rather than, or in connection with, taking such","page_number":210,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"15b58871-c251-4b89-8198-5b9f5065cb74","block_type":"box","text":"actions itself on behalf of the Funds.","page_number":210,"box":{"x":116,"y":676,"width":268,"height":10}},{"id":"231979e3-176c-442f-bb57-8fed5902b999","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other","page_number":210,"box":{"x":117,"y":707,"width":734,"height":12}},{"id":"cc9dd1a7-aa8d-4ac2-bcca-7f7eb8aca2c3","block_type":"box","text":"funds advised by BlackRock, including funds that are managed by one or more of the same portfolio","page_number":210,"box":{"x":116,"y":723,"width":743,"height":12}},{"id":"5a732a07-5649-43a8-88a5-a36d7099b7c7","block_type":"box","text":"managers, which could result in conflicts of interest relating to asset allocation, timing of Fund","page_number":210,"box":{"x":117,"y":738,"width":693,"height":12}},{"id":"860cfba1-8f7f-47e7-bc87-4b3ae15a7c8d","block_type":"box","text":"purchases and redemptions, and increased remuneration and profitability for BlackRock and/or its","page_number":210,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"d77bd6b3-8823-4c40-891a-1d595e568c87","block_type":"box","text":"personnel, including portfolio managers.","page_number":210,"box":{"x":117,"y":769,"width":295,"height":12}},{"id":"d4660fb8-80d2-4db9-8b32-94da9cc2290c","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but","page_number":210,"box":{"x":116,"y":800,"width":764,"height":12}},{"id":"7eb7b525-09d1-4d5f-8065-cf7f912e655b","block_type":"box","text":"not limited to, marketing and promotional activities and presentations, educational training programs","page_number":210,"box":{"x":117,"y":816,"width":741,"height":12}},{"id":"24239a91-67e5-4262-b87b-ff5383aed24a","block_type":"box","text":"and conferences) for registered representatives, other professionals and individual investors. There is","page_number":210,"box":{"x":116,"y":831,"width":759,"height":12}},{"id":"04336980-0d69-4857-b611-6f87d0fe0ced","block_type":"box","text":"a potential conflict of interest as such sponsorships may defray the costs of such activities to","page_number":210,"box":{"x":116,"y":847,"width":691,"height":12}},{"id":"b7d1b11a-5d3d-40c7-869e-259223a3a04f","block_type":"box","text":"BlackRock, and may provide an incentive to BlackRock to retain such third parties to provide services","page_number":210,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"5c2d67fc-b28c-4c89-95dc-d45bd5cdc16c","block_type":"box","text":"to the Fund.","page_number":210,"box":{"x":116,"y":878,"width":94,"height":9}},{"id":"58f991fd-16b9-4698-b5e1-1cbd4fc0a891","block_type":"box","text":"II-116","page_number":210,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"6b1f479f-0934-4d23-b7cf-0544d8ec304c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":210,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"53f9dd45-8ae2-4a3f-9197-64bf9d21ba05","block_type":"box","text":"In certain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to","page_number":211,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"ed790e2a-4c30-4884-b21c-d18024ca52be","block_type":"box","text":"another fund or account advised by BlackRock. BlackRock may (but is not required to) effect","page_number":211,"box":{"x":116,"y":102,"width":692,"height":13}},{"id":"797ad643-7e15-432f-bb83-ffc1f0e427dd","block_type":"box","text":"purchases and sales between BlackRock clients (“cross trades”), including the Funds, if BlackRock","page_number":211,"box":{"x":117,"y":118,"width":739,"height":12}},{"id":"88414f15-e9eb-48c2-ad1a-1759ecf6f2e8","block_type":"box","text":"believes such transactions are appropriate based on each party’s investment objectives and","page_number":211,"box":{"x":117,"y":134,"width":687,"height":12}},{"id":"8b71384b-8b10-4cd4-bbf9-2866e110e6f2","block_type":"box","text":"guidelines, subject to applicable law and regulation. There may be potential conflicts of interest or","page_number":211,"box":{"x":116,"y":149,"width":728,"height":12}},{"id":"e46768ca-7eb9-43a6-82dd-eec7c9f777e5","block_type":"box","text":"regulatory issues relating to these transactions which could limit BlackRock’s decision to engage in","page_number":211,"box":{"x":117,"y":165,"width":738,"height":12}},{"id":"b6d2d6d3-c240-4cae-b56e-9bcb95237868","block_type":"box","text":"these transactions for the Funds. BlackRock may have a potentially conflicting division of loyalties and","page_number":211,"box":{"x":116,"y":180,"width":763,"height":12}},{"id":"9b902ed4-c5dc-4765-9867-0b4e7b6ceb7f","block_type":"box","text":"responsibilities to the parties in such transactions.","page_number":211,"box":{"x":117,"y":196,"width":374,"height":11}},{"id":"d1411144-9afa-48ea-ad5d-be5d215d39d7","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has","page_number":211,"box":{"x":117,"y":227,"width":749,"height":12}},{"id":"e6c59483-d6c5-406e-b4c9-be56a99080ed","block_type":"box","text":"invested, and those activities may have an adverse effect on the Fund. As a result, prices, availability,","page_number":211,"box":{"x":117,"y":242,"width":760,"height":12}},{"id":"b19ff818-c3d3-4cf4-89a8-2a75fce9fc3f","block_type":"box","text":"liquidity and terms of the Fund’s investments may be negatively impacted by the activities of","page_number":211,"box":{"x":117,"y":258,"width":687,"height":12}},{"id":"e51a5d35-1d76-44c0-8494-920b954c0ed2","block_type":"box","text":"BlackRock or its clients, and transactions for the Fund may be impaired or effected at prices or terms","page_number":211,"box":{"x":117,"y":273,"width":753,"height":12}},{"id":"b7e8705d-c650-42f7-80a1-491a09083593","block_type":"box","text":"that may be less favorable than would otherwise have been the case.","page_number":211,"box":{"x":116,"y":289,"width":520,"height":12}},{"id":"9aa0ead0-1a8d-42eb-a94e-42fffe97b1b1","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by","page_number":211,"box":{"x":116,"y":320,"width":716,"height":12}},{"id":"311d06ad-03e8-4a46-a301-6f3a63c321c2","block_type":"box","text":"BlackRock for its proprietary accounts or other accounts (including investment companies or collective","page_number":211,"box":{"x":117,"y":335,"width":763,"height":12}},{"id":"e496361b-cc4c-485d-af28-4509470c97a1","block_type":"box","text":"investment vehicles) that it manages or advises. It is possible that one or more accounts managed or","page_number":211,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"2042d037-8320-478f-b4b6-c445b3123b8e","block_type":"box","text":"advised by BlackRock and such other accounts will achieve investment results that are substantially","page_number":211,"box":{"x":116,"y":366,"width":747,"height":12}},{"id":"cdfd925d-0e8d-4411-ac01-ea4982f252ff","block_type":"box","text":"more or less favorable than the results achieved by a Fund. Moreover, it is possible that a Fund will","page_number":211,"box":{"x":117,"y":382,"width":741,"height":12}},{"id":"fcd457b1-d9a0-4fd9-bc2d-f3b509c136e8","block_type":"box","text":"sustain losses during periods in which one or more proprietary or other accounts managed or advised","page_number":211,"box":{"x":116,"y":397,"width":759,"height":12}},{"id":"cedfa726-5f25-44d4-afbc-5f9e613b115d","block_type":"box","text":"by BlackRock achieve significant profits. The opposite result is also possible.","page_number":211,"box":{"x":117,"y":413,"width":574,"height":12}},{"id":"d246e04e-240a-4474-8026-a6e68a06fe61","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in","page_number":211,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"b02019d8-dd42-4eb0-8958-f469d33e9e92","block_type":"box","text":"other investment activities because of regulatory, legal or contractual requirements applicable to","page_number":211,"box":{"x":116,"y":459,"width":718,"height":12}},{"id":"99fe2694-5826-48fb-bf0e-04d803b05a4c","block_type":"box","text":"BlackRock or other accounts managed or advised by BlackRock, and/or the internal policies of","page_number":211,"box":{"x":117,"y":475,"width":706,"height":12}},{"id":"c330e4bd-88f2-4b54-b6c1-d15be32718f7","block_type":"box","text":"BlackRock designed to comply with such requirements. As a result, there may be periods, for example,","page_number":211,"box":{"x":117,"y":490,"width":769,"height":12}},{"id":"7d71e424-2c96-458c-ba5a-e4178210b1f4","block_type":"box","text":"when BlackRock will not initiate or recommend certain types of transactions regarding certain","page_number":211,"box":{"x":116,"y":506,"width":697,"height":12}},{"id":"231eac08-4bf3-4217-80aa-c6ffe35832cc","block_type":"box","text":"securities or instruments with respect to which BlackRock is performing services or when position limits","page_number":211,"box":{"x":116,"y":521,"width":771,"height":12}},{"id":"3f92fab6-bc91-4f68-8561-e3e163a612d5","block_type":"box","text":"have been reached. For example, the investment activities of BlackRock for its proprietary accounts","page_number":211,"box":{"x":117,"y":537,"width":745,"height":12}},{"id":"ffb79901-d90b-4850-9a4a-02632c44ef88","block_type":"box","text":"and accounts under its management may limit the investment opportunities for a Fund in certain","page_number":211,"box":{"x":116,"y":552,"width":717,"height":12}},{"id":"4dab23a5-74a6-4ccb-97b3-b3156328c130","block_type":"box","text":"emerging and other markets in which limitations are imposed upon the amount of investment, in the","page_number":211,"box":{"x":116,"y":568,"width":744,"height":12}},{"id":"28447dc7-e11f-490b-bac5-c740c0c7e8f7","block_type":"box","text":"aggregate or in individual issuers, by affiliated foreign investors.","page_number":211,"box":{"x":116,"y":583,"width":478,"height":12}},{"id":"ec99fab2-fd51-4617-9714-f64f6d49adba","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental","page_number":211,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"8ca4f836-6d9d-4502-98df-5b2d5f0d1f75","block_type":"box","text":"analysis and proprietary technical models developed by BlackRock. BlackRock will not be under any","page_number":211,"box":{"x":116,"y":630,"width":750,"height":12}},{"id":"464e6769-3b3a-41f9-8560-854904b7fdc4","block_type":"box","text":"obligation, however, to effect transactions on behalf of a Fund in accordance with such analysis and","page_number":211,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"b9b6d7b4-a9e3-4202-bd1c-1aab775f741f","block_type":"box","text":"models. In addition, BlackRock will not have any obligation to make available any information regarding","page_number":211,"box":{"x":117,"y":661,"width":764,"height":12}},{"id":"7ea1129e-b2d5-45c1-ae8c-b3824d52a488","block_type":"box","text":"its proprietary activities or strategies, or the activities or strategies used for other accounts managed by","page_number":211,"box":{"x":117,"y":676,"width":764,"height":12}},{"id":"4f9d44b4-b165-441e-8112-bbbd2bbc76c3","block_type":"box","text":"them, for the benefit of the management of a Fund and it is not anticipated that BlackRock will have","page_number":211,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"f3ed44fc-e105-42b9-a301-18d59969f321","block_type":"box","text":"access to such information for the purpose of managing the Fund. The proprietary activities or portfolio","page_number":211,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"97d587eb-a4bf-4410-b131-681b77494bd0","block_type":"box","text":"strategies of BlackRock, or the activities or strategies used for accounts managed by BlackRock or","page_number":211,"box":{"x":116,"y":723,"width":734,"height":12}},{"id":"5f7f1035-dc6d-4c85-80ed-99e76042e9f9","block_type":"box","text":"other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":211,"box":{"x":116,"y":738,"width":725,"height":12}},{"id":"e4052843-9897-4a82-84f5-fa98b7f05199","block_type":"box","text":"managing a Fund.","page_number":211,"box":{"x":117,"y":754,"width":133,"height":12}},{"id":"825cf814-e1ac-40d4-8f51-be2dcfdef838","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and","page_number":211,"box":{"x":116,"y":785,"width":722,"height":12}},{"id":"e699b3ab-f843-4005-aba5-4308584e630b","block_type":"box","text":"financial advisors. To the extent clients invest in these investment models and increase the assets","page_number":211,"box":{"x":116,"y":800,"width":728,"height":10}},{"id":"e2b5bea0-7895-4666-b5d8-883e2860800d","block_type":"box","text":"under management of the Funds, the investment management fee amounts paid by the Funds to","page_number":211,"box":{"x":117,"y":816,"width":719,"height":12}},{"id":"facde1eb-9ed2-426b-aacd-127318eabc44","block_type":"box","text":"BlackRock may also increase. The net asset value and liquidity of a Fund may be impacted by","page_number":211,"box":{"x":117,"y":831,"width":704,"height":12}},{"id":"a1f988c2-7cb3-493b-a210-da4c9952d346","block_type":"box","text":"purchases and sales of the Fund by model-driven investment portfolios, as well as by BlackRock itself","page_number":211,"box":{"x":117,"y":847,"width":760,"height":12}},{"id":"715bc3ed-e531-4093-b6ad-18b118c0aed3","block_type":"box","text":"and by its advisory clients.","page_number":211,"box":{"x":116,"y":862,"width":201,"height":12}},{"id":"e662ae77-ca02-447a-a551-fae9a85e5c28","block_type":"box","text":"II-117","page_number":211,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"54976b2a-a8d3-4638-898e-09ac0d1ed7ab","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":211,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6db86a2c-820c-4f9f-84de-57539ea3c472","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals","page_number":212,"box":{"x":117,"y":87,"width":764,"height":12}},{"id":"d5f829c3-617b-4be1-84db-273372d9eba9","block_type":"box","text":"or employees of other business units or entities within BlackRock. As a result, these principals and","page_number":212,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"cbfa543f-fe08-459e-9985-b455efd5850b","block_type":"box","text":"employees may have obligations to such other business units or entities or their clients and such","page_number":212,"box":{"x":116,"y":118,"width":722,"height":12}},{"id":"645f4068-e4af-4e98-ba11-7fbdd435dbfe","block_type":"box","text":"obligations to other business units or entities or their clients may be a consideration of which investors","page_number":212,"box":{"x":116,"y":134,"width":762,"height":12}},{"id":"9fcb7986-cd26-41fd-93ed-61d6ac27fea8","block_type":"box","text":"in a Fund should be aware.","page_number":212,"box":{"x":117,"y":149,"width":206,"height":10}},{"id":"e7a94d93-aac9-4ccc-91c7-9f41204b43f4","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of","page_number":212,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"883ac5ae-3a5f-4f69-a997-a38986a612fc","block_type":"box","text":"a Fund in which clients of BlackRock, or, to the extent permitted by the Commission and applicable","page_number":212,"box":{"x":116,"y":196,"width":740,"height":12}},{"id":"4ec5697b-d199-4732-93eb-c3c1e11c814e","block_type":"box","text":"law, BlackRock, serves as the counterparty, principal or issuer. In such cases, such party’s interests in","page_number":212,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"ed72cbbb-1816-4519-9451-62143a55e5af","block_type":"box","text":"the transaction will be adverse to the interests of the Fund, and such party may have no incentive to","page_number":212,"box":{"x":116,"y":227,"width":747,"height":12}},{"id":"299c3a62-859c-4161-884c-586ec170e87c","block_type":"box","text":"assure that the Fund obtains the best possible prices or terms in connection with the transactions. In","page_number":212,"box":{"x":116,"y":242,"width":750,"height":12}},{"id":"0b9674ae-d88a-4f27-ac7a-3f4ab15faaa6","block_type":"box","text":"addition, the purchase, holding and sale of such investments by a Fund may enhance the profitability","page_number":212,"box":{"x":116,"y":258,"width":754,"height":12}},{"id":"fcc8b234-51ab-4cb6-8220-028f2ef337ad","block_type":"box","text":"of BlackRock.","page_number":212,"box":{"x":116,"y":273,"width":107,"height":10}},{"id":"7203fe25-bbd4-483f-a14e-da30c5d49d6c","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies","page_number":212,"box":{"x":117,"y":304,"width":755,"height":12}},{"id":"5607a301-a842-4b72-a06c-646e5dbc3dc4","block_type":"box","text":"or instruments of which may be those in which a Fund invests or which may be based on the","page_number":212,"box":{"x":116,"y":320,"width":692,"height":12}},{"id":"363e8c2d-18e9-4889-9504-4999459cd7ff","block_type":"box","text":"performance of the Fund. Additionally, an affiliate of BlackRock will create, write or issue options,","page_number":212,"box":{"x":117,"y":335,"width":724,"height":12}},{"id":"34bb5ad0-2e75-4eec-b3a5-22752fbf810b","block_type":"box","text":"which may be based on the performance of certain Funds. BlackRock has entered into an arrangement","page_number":212,"box":{"x":116,"y":351,"width":772,"height":12}},{"id":"90f95dcb-f02c-444e-b00f-8e538d7d4992","block_type":"box","text":"with Markit Indices Limited, the index provider for underlying fixed-income indexes used by certain","page_number":212,"box":{"x":116,"y":366,"width":733,"height":12}},{"id":"f742ef09-d648-4ace-a994-7897114bd675","block_type":"box","text":"iShares ETFs, related to derivative fixed-income products that are based on such iShares ETFs.","page_number":212,"box":{"x":117,"y":382,"width":718,"height":12}},{"id":"c890e028-8414-4f0d-a9ec-8b49129ac5d1","block_type":"box","text":"Trading activity in these derivative products could also potentially lead to greater liquidity for such","page_number":212,"box":{"x":116,"y":397,"width":727,"height":12}},{"id":"df5c0431-924e-43fb-a6ae-eeb2d46107a0","block_type":"box","text":"products, increased purchase activity with respect to these iShares ETFs and increased assets under","page_number":212,"box":{"x":117,"y":413,"width":758,"height":12}},{"id":"d678e94a-a4b9-4e0c-a1de-712bd4d8e2fe","block_type":"box","text":"management for BlackRock.","page_number":212,"box":{"x":117,"y":428,"width":215,"height":12}},{"id":"c7c9a08c-bdf0-4668-b4fd-141a78216fcd","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or","page_number":212,"box":{"x":116,"y":459,"width":766,"height":12}},{"id":"3b64e914-c2a8-41df-98e6-b37bcf7f0315","block_type":"box","text":"other distribution by BlackRock and may also enter into transactions with other clients of BlackRock","page_number":212,"box":{"x":116,"y":475,"width":744,"height":12}},{"id":"318a8e43-47ba-4c15-99ed-1342f9ec5b0c","block_type":"box","text":"where such other clients have interests adverse to those of the Fund. At times, these activities may","page_number":212,"box":{"x":116,"y":490,"width":741,"height":12}},{"id":"d968b18d-4044-4c6a-8bc0-36f0c674a879","block_type":"box","text":"cause business units or entities within BlackRock to give advice to clients that may cause these clients","page_number":212,"box":{"x":116,"y":506,"width":766,"height":12}},{"id":"599abea9-2745-4595-bf7b-b93ac89d75b1","block_type":"box","text":"to take actions adverse to the interests of the Fund. To the extent such transactions are permitted, a","page_number":212,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"74b872c2-09cd-479e-9996-00634c371a91","block_type":"box","text":"Fund will deal with BlackRock on an arms-length basis.","page_number":212,"box":{"x":117,"y":537,"width":414,"height":12}},{"id":"8bcae0be-09a5-4cc0-a5fd-30c96eed8db6","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or","page_number":212,"box":{"x":116,"y":568,"width":729,"height":12}},{"id":"827c6125-0a4a-4252-ae40-ed51bf4a3966","block_type":"box","text":"adviser or in other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups,","page_number":212,"box":{"x":116,"y":583,"width":760,"height":12}},{"id":"dd5c9aa5-9d3a-40b1-854a-c5778e613e9c","block_type":"box","text":"mark-downs, financial advisory fees, underwriting and placement fees, sales fees, financing and","page_number":212,"box":{"x":117,"y":599,"width":717,"height":12}},{"id":"ee66039b-a935-4185-9670-be06113da3f8","block_type":"box","text":"commitment fees, brokerage fees, other fees, compensation or profits, rates, terms and conditions","page_number":212,"box":{"x":116,"y":614,"width":735,"height":12}},{"id":"243d1cad-e3c4-45cf-a5e5-7aed4c2469ef","block_type":"box","text":"charged by BlackRock will be in its view commercially reasonable, although BlackRock, including its","page_number":212,"box":{"x":116,"y":630,"width":747,"height":12}},{"id":"99f1f5f9-ed00-4b6d-b7c6-8116db12e5f6","block_type":"box","text":"sales personnel, will have an interest in obtaining fees and other amounts that are favorable to","page_number":212,"box":{"x":116,"y":645,"width":706,"height":12}},{"id":"f8b00875-98d7-43c1-b69b-d5b1781a3c7f","block_type":"box","text":"BlackRock and such sales personnel, which may have an adverse effect on the Funds. Index based","page_number":212,"box":{"x":117,"y":661,"width":740,"height":12}},{"id":"b580d3f6-6659-4ea1-be49-1361831bc272","block_type":"box","text":"funds may use an index provider that is affiliated with another service provider of the Fund or","page_number":212,"box":{"x":116,"y":676,"width":690,"height":12}},{"id":"89bac3d3-afc3-4b92-8b01-2c3afa3b59f1","block_type":"box","text":"BlackRock that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or","page_number":212,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"d796b3ac-5f2d-4c5d-a69c-5fa4d3cffadc","block_type":"box","text":"BlackRock.","page_number":212,"box":{"x":117,"y":707,"width":81,"height":10}},{"id":"4b3a886c-1d6c-44d3-a6a8-a92c8800dcbe","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain","page_number":212,"box":{"x":116,"y":738,"width":755,"height":12}},{"id":"4f2a1d9f-fc7c-4e70-86c0-a6f868f5bab6","block_type":"box","text":"fees and other amounts that they receive in connection with their service to the Funds as broker,","page_number":212,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"1c53b65e-fe45-480d-a0c6-044b89e13593","block_type":"box","text":"dealer, agent, lender, adviser or in other commercial capacities. No accounting to the Funds or their","page_number":212,"box":{"x":116,"y":769,"width":741,"height":12}},{"id":"152b88e5-a8e3-486e-8542-a646789932f7","block_type":"box","text":"shareholders will be required, and no fees or other compensation payable by the Funds or their","page_number":212,"box":{"x":116,"y":785,"width":707,"height":12}},{"id":"94989492-a8c0-4310-8a08-f833a97f2264","block_type":"box","text":"shareholders will be reduced by reason of receipt by BlackRock of any such fees or other amounts.","page_number":212,"box":{"x":116,"y":800,"width":735,"height":12}},{"id":"d4c69096-ce85-4bef-9805-2a6a9d6a720a","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to","page_number":212,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"edb9e886-598b-4d60-84f1-5c3f306bee2f","block_type":"box","text":"the Funds, BlackRock may take commercial steps in its own interests, which may have an adverse","page_number":212,"box":{"x":116,"y":847,"width":738,"height":12}},{"id":"69b1a340-9f61-4e76-9cb4-93466d7a1e1d","block_type":"box","text":"effect on the Funds.","page_number":212,"box":{"x":116,"y":862,"width":153,"height":10}},{"id":"70035570-8213-42d2-b778-7739ac45c457","block_type":"box","text":"II-118","page_number":212,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"bf83cfeb-97e0-4ee8-bdf2-f71259c7abd3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":212,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a29c01fa-3442-4d5f-a1d7-8fc2d7eb0fae","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s","page_number":213,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"51fcfe38-7f71-4dca-a718-aed760fe2625","block_type":"box","text":"own credit standing. BlackRock will not have any obligation to allow its credit to be used in connection","page_number":213,"box":{"x":116,"y":103,"width":760,"height":12}},{"id":"5e82b297-a679-4a23-8291-8f893adbdb3c","block_type":"box","text":"with a Fund’s establishment of its business relationships, nor is it expected that the Fund’s","page_number":213,"box":{"x":116,"y":118,"width":675,"height":12}},{"id":"794bdd46-e71a-42ae-a5ca-293dd18c9ccb","block_type":"box","text":"counterparties will rely on the credit of BlackRock in evaluating the Fund’s creditworthiness.","page_number":213,"box":{"x":116,"y":134,"width":684,"height":12}},{"id":"60b53fe4-9967-4cdb-84c9-2fa38b2cc019","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A.","page_number":213,"box":{"x":117,"y":165,"width":726,"height":12}},{"id":"a67c1009-2af4-49b4-b996-bd0ebf5a8047","block_type":"box","text":"(“BTC”), as applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as","page_number":213,"box":{"x":117,"y":180,"width":715,"height":12}},{"id":"e675e6ef-24cd-4eed-9558-9261febab510","block_type":"box","text":"securities lending agent to, and receives a share of securities lending revenues from, the Funds.","page_number":213,"box":{"x":116,"y":196,"width":720,"height":12}},{"id":"982aa9b6-dd1d-4963-8122-0af17506af77","block_type":"box","text":"BlackRock will also receive compensation for managing the reinvestment of the cash collateral from","page_number":213,"box":{"x":117,"y":211,"width":744,"height":12}},{"id":"cf668764-5cd4-452b-ae35-e45c3c41c8fc","block_type":"box","text":"securities lending. There are potential conflicts of interests in managing a securities lending program,","page_number":213,"box":{"x":116,"y":227,"width":755,"height":12}},{"id":"462d139d-eab7-4639-a378-45699ee947e5","block_type":"box","text":"including but not limited to: (i) BlackRock as securities lending agent may have an incentive to, among","page_number":213,"box":{"x":117,"y":242,"width":762,"height":12}},{"id":"d08bf48a-f186-484a-8eb9-b1278c70c7b0","block_type":"box","text":"other things, increase or decrease the amount of securities on loan or to lend particular securities in","page_number":213,"box":{"x":116,"y":258,"width":745,"height":12}},{"id":"f547085b-346b-4e23-818f-9958212100b6","block_type":"box","text":"order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock","page_number":213,"box":{"x":116,"y":273,"width":750,"height":12}},{"id":"64f0c37a-86ab-4971-8299-42ebf8fa919d","block_type":"box","text":"as securities lending agent may have an incentive to allocate loans to clients that would provide more","page_number":213,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"0a2917ae-9358-4e9a-aee8-10362c22e9a1","block_type":"box","text":"revenue to BlackRock. As described further below, BlackRock seeks to mitigate this conflict by","page_number":213,"box":{"x":117,"y":304,"width":706,"height":12}},{"id":"9222f3c7-8e37-4b72-ac57-38dcc67d1921","block_type":"box","text":"providing its securities lending clients with equal lending opportunities over time in order to","page_number":213,"box":{"x":117,"y":320,"width":675,"height":12}},{"id":"6db0512f-6dd2-42b5-8e7e-4c848fc8ff8e","block_type":"box","text":"approximate pro rata allocation.","page_number":213,"box":{"x":116,"y":335,"width":240,"height":12}},{"id":"d39f1c5d-4b51-47f3-82bd-909ae57307ae","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients","page_number":213,"box":{"x":116,"y":366,"width":742,"height":12}},{"id":"fb6cdaf5-e43c-4e2f-8c34-7ce73e21eb0b","block_type":"box","text":"and/or funds against a shortfall in collateral in the event of borrower default. 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BlackRock","page_number":213,"box":{"x":117,"y":428,"width":711,"height":12}},{"id":"a3c06ebf-2a46-4d67-81b3-bf8a345cd278","block_type":"box","text":"oversees the risk model that calculates projected collateral shortfall values using loan-level factors","page_number":213,"box":{"x":116,"y":444,"width":734,"height":12}},{"id":"62c2a19d-1107-4e1c-8254-46ce0fb21017","block_type":"box","text":"such as loan and collateral type and market value as well as specific borrower credit characteristics.","page_number":213,"box":{"x":116,"y":459,"width":747,"height":12}},{"id":"30dc2c36-c059-48e4-8bed-fc9d7024ffcc","block_type":"box","text":"When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":213,"box":{"x":116,"y":475,"width":738,"height":12}},{"id":"f32fcedd-926a-4540-b8d0-4bfcd40e6f4d","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as","page_number":213,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"c0ef2cf4-ee41-4e5a-a854-7675c9b2e301","block_type":"box","text":"well as BlackRock-specific indemnification exposure may affect the amount of securities lending","page_number":213,"box":{"x":116,"y":506,"width":717,"height":12}},{"id":"d9a9be27-34a7-4edc-a641-a9aec3b78caf","block_type":"box","text":"activity BlackRock may conduct at any given point in time by reducing the volume of lending","page_number":213,"box":{"x":116,"y":521,"width":687,"height":12}},{"id":"c388d0c7-2cb8-4532-9576-2a6cb328916c","block_type":"box","text":"opportunities for certain loans (including by asset type, collateral type and/or revenue profile).","page_number":213,"box":{"x":116,"y":537,"width":698,"height":12}},{"id":"ee04c396-5197-4441-8662-a3bf77325ca6","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of","page_number":213,"box":{"x":117,"y":568,"width":764,"height":12}},{"id":"0f322866-8a47-4a57-bfd7-628c68f88e53","block_type":"box","text":"a Fund or terminate a securities loan on behalf of a Fund for any reason, including but not limited to","page_number":213,"box":{"x":116,"y":583,"width":744,"height":12}},{"id":"b14e6d95-7b8c-495c-a1a3-ba28e92c29c0","block_type":"box","text":"regulatory requirements and/or market rules, liquidity considerations, or credit considerations, which","page_number":213,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"1ab16eba-00c3-47de-a0b7-de9b7ff83262","block_type":"box","text":"may impact Funds by reducing or eliminating the volume of lending opportunities for certain types of","page_number":213,"box":{"x":117,"y":614,"width":746,"height":12}},{"id":"fc954d53-f269-40c4-8d1b-8d8ec7688c68","block_type":"box","text":"loans, loans in particular markets, loans of particular securities or types of securities, or for loans","page_number":213,"box":{"x":117,"y":630,"width":720,"height":12}},{"id":"664bc3a7-d47c-4e7b-862d-63a8e2d00cf7","block_type":"box","text":"overall. In addition, some borrowers may prefer certain BlackRock lenders that provide additional","page_number":213,"box":{"x":116,"y":645,"width":725,"height":12}},{"id":"8502011c-b15c-4c34-83b5-4465a792d8ac","block_type":"box","text":"protections against lender default that are favored by their prudential regulation.","page_number":213,"box":{"x":117,"y":661,"width":590,"height":12}},{"id":"0eda8026-bbb1-44b6-9ba6-1725eea38ddf","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over","page_number":213,"box":{"x":117,"y":692,"width":747,"height":12}},{"id":"27b50ad3-f7a4-4349-aedd-9728322f4028","block_type":"box","text":"time. In order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending","page_number":213,"box":{"x":116,"y":707,"width":733,"height":12}},{"id":"29c91030-4aae-4fc2-b703-5ddf9a87b834","block_type":"box","text":"capacity pursuant to the various program limits (i.e. indemnification exposure limit and borrower credit","page_number":213,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"8ac3fb8c-03b2-4fda-a623-ec42fe5077e5","block_type":"box","text":"limits); (ii) the lending portfolio must hold the asset at the time a loan opportunity arrives; and (iii) the","page_number":213,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"c4a5279d-59af-471d-b56d-aafd70b89ff0","block_type":"box","text":"lending portfolio must also have enough inventory, either on its own or when aggregated with other","page_number":213,"box":{"x":117,"y":754,"width":733,"height":12}},{"id":"b008cb11-d76a-4af8-951c-dc2f11d3a2e7","block_type":"box","text":"portfolios into one single market delivery, to satisfy the loan request. In doing so, BlackRock seeks to","page_number":213,"box":{"x":117,"y":769,"width":748,"height":12}},{"id":"9eb459aa-c1bc-4f0a-adb9-7c61c6e9d5e6","block_type":"box","text":"provide equal lending opportunities for all portfolios, independent of whether BlackRock indemnifies the","page_number":213,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"66fcb356-9402-4c9d-97fb-d41e5e87da17","block_type":"box","text":"portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes. Specifically,","page_number":213,"box":{"x":117,"y":800,"width":738,"height":12}},{"id":"52c9b60e-363a-4940-b301-56e2b26721c8","block_type":"box","text":"short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads","page_number":213,"box":{"x":116,"y":816,"width":744,"height":12}},{"id":"384d870a-268f-4465-8875-9d785db4dc30","block_type":"box","text":"on different securities, and the overall limits imposed by the firm.","page_number":213,"box":{"x":116,"y":831,"width":483,"height":12}},{"id":"96b64a7b-274a-4760-a207-ea6e83c05cc4","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":213,"box":{"x":117,"y":862,"width":769,"height":12}},{"id":"093425aa-d28b-4290-8ef3-0fcb51d23ea8","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the","page_number":213,"box":{"x":117,"y":878,"width":770,"height":12}},{"id":"26c8115f-8d4c-4bb7-be2e-f86452551853","block_type":"box","text":"II-119","page_number":213,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"717a2632-636c-40f2-b335-f4da7348e486","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":213,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f984eed4-2b5f-47d8-82bf-f4f3e23920d5","block_type":"box","text":"fact that they have different research payment arrangements. BlackRock, however, is not required to","page_number":214,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"e76fa6d4-0597-431f-a223-8df52e2701c8","block_type":"box","text":"aggregate orders if portfolio management decisions for different accounts are made separately, or if","page_number":214,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"aab887c9-4be6-4d06-bef8-97ae1705767a","block_type":"box","text":"they determine that aggregating is not practicable or required, or in cases involving client direction.","page_number":214,"box":{"x":116,"y":118,"width":737,"height":12}},{"id":"89351078-17a0-49d7-b95e-733d81b008f2","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution","page_number":214,"box":{"x":117,"y":146,"width":748,"height":12}},{"id":"e08129e1-8ccd-4553-9580-47bf742add8f","block_type":"box","text":"on the entire volume of securities purchased or sold. When this occurs, the various prices may be","page_number":214,"box":{"x":116,"y":162,"width":730,"height":12}},{"id":"b3211b53-9c12-433f-b121-615362a703ac","block_type":"box","text":"averaged, and the Funds will be charged or credited with the average price. Thus, the effect of the","page_number":214,"box":{"x":116,"y":177,"width":734,"height":12}},{"id":"b0674fef-6569-4f4d-a053-44eb676ec7f1","block_type":"box","text":"aggregation may operate on some occasions to the disadvantage of the Funds. In addition, under","page_number":214,"box":{"x":116,"y":193,"width":730,"height":12}},{"id":"8ff2b022-5f33-458a-9e38-08033328271a","block_type":"box","text":"certain circumstances, the Funds will not be charged the same commission or commission equivalent","page_number":214,"box":{"x":116,"y":209,"width":759,"height":11}},{"id":"73bfc72b-70c2-475f-954c-393563575ca6","block_type":"box","text":"rates in connection with an aggregated order.","page_number":214,"box":{"x":117,"y":224,"width":341,"height":12}},{"id":"8bf3ee28-05c6-474a-b6b2-02cc616662bc","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage — Transactions in","page_number":214,"box":{"x":116,"y":252,"width":743,"height":12}},{"id":"f6ef29c6-049f-4ab6-b526-326088831e9c","block_type":"box","text":"Portfolio Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to","page_number":214,"box":{"x":117,"y":268,"width":757,"height":12}},{"id":"33628d69-c45a-4563-8126-3073aede274c","block_type":"box","text":"pay a broker or dealer a commission for effecting a transaction that exceeds the amount another","page_number":214,"box":{"x":117,"y":283,"width":720,"height":12}},{"id":"106a23d7-2735-4afb-befd-55edf9c40108","block_type":"box","text":"broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":214,"box":{"x":117,"y":299,"width":746,"height":12}},{"id":"2d960d5b-abe7-44f7-9679-48d98bc29c96","block_type":"box","text":"brokerage and research services provided by that broker or dealer. Under MiFID II, EU investment","page_number":214,"box":{"x":117,"y":314,"width":734,"height":12}},{"id":"7cad5984-23df-40a7-b310-f43ccafa0643","block_type":"box","text":"managers, including BlackRock International Limited (“BIL”) which acts as a sub-adviser to certain","page_number":214,"box":{"x":117,"y":330,"width":732,"height":12}},{"id":"01f70930-418a-44f3-91eb-a620be208a12","block_type":"box","text":"Funds, pay for research from brokers and dealers directly out of their own resources, rather than","page_number":214,"box":{"x":117,"y":345,"width":721,"height":12}},{"id":"edfa1d43-6c0c-435c-8ce2-282bf191b3c3","block_type":"box","text":"through client commissions.","page_number":214,"box":{"x":116,"y":361,"width":212,"height":12}},{"id":"6074620a-fcbd-4e3e-82d1-ce689f94be79","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other","page_number":214,"box":{"x":116,"y":389,"width":728,"height":12}},{"id":"9e6b701e-5a99-48ca-a361-d90c29068fec","block_type":"box","text":"BlackRock client accounts or personnel, directly or through correspondent relationships, with research","page_number":214,"box":{"x":117,"y":405,"width":762,"height":12}},{"id":"4a16bb5f-a519-42f2-943f-65790a45c097","block_type":"box","text":"or other appropriate services which provide, in BlackRock’s view, appropriate assistance to BlackRock","page_number":214,"box":{"x":116,"y":420,"width":765,"height":12}},{"id":"cad5fbce-edca-47c8-b757-8230024f4a3f","block_type":"box","text":"in the investment decision-making process (including with respect to futures, fixed-price offerings and","page_number":214,"box":{"x":117,"y":436,"width":756,"height":12}},{"id":"e0e0b756-623f-4bcb-95e8-f1673c85f1a1","block_type":"box","text":"OTC transactions). Such research or other services may include, to the extent permitted by law,","page_number":214,"box":{"x":116,"y":451,"width":717,"height":12}},{"id":"5c90e303-903e-427b-9240-4b09a67bca01","block_type":"box","text":"research reports on companies, industries and securities; economic and financial data; financial","page_number":214,"box":{"x":117,"y":467,"width":714,"height":12}},{"id":"199cb44c-a7f0-458d-842c-5da1c914d112","block_type":"box","text":"publications; proxy analysis; trade industry seminars; computer data bases; research-oriented software","page_number":214,"box":{"x":117,"y":482,"width":769,"height":12}},{"id":"45a59f3b-91f9-48f0-829a-8deca2ff6636","block_type":"box","text":"and other services and products.","page_number":214,"box":{"x":116,"y":498,"width":249,"height":12}},{"id":"aaf40742-6259-4c9d-8140-d3dae9e6983a","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds","page_number":214,"box":{"x":117,"y":526,"width":745,"height":12}},{"id":"515542d6-f879-4fdc-bc01-44a424f44fe5","block_type":"box","text":"and other BlackRock client accounts, including in connection with BlackRock client accounts other than","page_number":214,"box":{"x":116,"y":542,"width":770,"height":12}},{"id":"50912c7b-bc8b-4a4a-acd4-dea1c3c199cb","block_type":"box","text":"those that pay commissions to the broker relating to the research or other service arrangements. Such","page_number":214,"box":{"x":116,"y":557,"width":766,"height":12}},{"id":"bc19e0b8-0ff6-4860-9140-bfcf156862a1","block_type":"box","text":"products and services may disproportionately benefit other BlackRock client accounts relative to the","page_number":214,"box":{"x":117,"y":573,"width":745,"height":12}},{"id":"13dcb520-f9cf-4ad5-a319-8b376753fcf5","block_type":"box","text":"Funds based on the amount of brokerage commissions paid by the Funds and such other BlackRock","page_number":214,"box":{"x":117,"y":588,"width":753,"height":12}},{"id":"84da6160-9b3f-4255-a5ac-1e784811b5ce","block_type":"box","text":"client accounts. For example, research or other services that are paid for through one client’s","page_number":214,"box":{"x":116,"y":604,"width":696,"height":12}},{"id":"4eac68ac-4515-4cec-a163-5daae2cb43a1","block_type":"box","text":"commissions may not be used in managing that client’s account. In addition, other BlackRock client","page_number":214,"box":{"x":116,"y":619,"width":743,"height":12}},{"id":"7f143ba5-59b3-4bda-b345-9440e6224248","block_type":"box","text":"accounts may receive the benefit, including disproportionate benefits, of economies of scale or price","page_number":214,"box":{"x":116,"y":635,"width":748,"height":12}},{"id":"284ff2ce-9a8e-4a9f-b1ac-2cb94d2c83a9","block_type":"box","text":"discounts in connection with products and services that may be provided to the Funds and to such","page_number":214,"box":{"x":116,"y":650,"width":734,"height":12}},{"id":"dcd184bd-aa1f-40ba-829f-f44e56dcd44c","block_type":"box","text":"other BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay","page_number":214,"box":{"x":116,"y":666,"width":755,"height":12}},{"id":"d86796f6-1174-4eb2-b95f-204b115c7a38","block_type":"box","text":"for those products and services itself.","page_number":214,"box":{"x":116,"y":681,"width":276,"height":12}},{"id":"fa79c268-6114-415f-bb7c-9d9e651bb808","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who,","page_number":214,"box":{"x":117,"y":710,"width":759,"height":12}},{"id":"3a15263f-dce0-4e6d-b524-8d0d60840e0e","block_type":"box","text":"pursuant to such arrangements, provide research or other services in order to ensure the continued","page_number":214,"box":{"x":117,"y":725,"width":737,"height":12}},{"id":"50450d47-ce5e-4dac-aab3-401433cbd0f5","block_type":"box","text":"receipt of research or other services BlackRock believes are useful in its investment decision-making","page_number":214,"box":{"x":117,"y":740,"width":747,"height":13}},{"id":"c68924c5-17dd-4607-866a-764ed56d7ad5","block_type":"box","text":"process. BlackRock may from time to time choose not to engage in the above described arrangements","page_number":214,"box":{"x":117,"y":756,"width":762,"height":12}},{"id":"82c02021-d3df-4944-b516-c820d2dc089b","block_type":"box","text":"to varying degrees. BlackRock, unless prohibited by applicable law, may also enter into commission","page_number":214,"box":{"x":116,"y":772,"width":740,"height":12}},{"id":"2dbd53b6-5374-40f6-a4a8-6a7eb3aade21","block_type":"box","text":"sharing arrangements under which BlackRock may execute transactions through a broker-dealer and","page_number":214,"box":{"x":116,"y":787,"width":751,"height":12}},{"id":"0eb8e81b-65c1-4cd8-87ee-dfc60b0b0325","block_type":"box","text":"request that the broker-dealer allocate a portion of the commissions or commission credits to another","page_number":214,"box":{"x":117,"y":802,"width":750,"height":12}},{"id":"2cf8be6e-45b8-477f-a8de-d2c4e0afeabd","block_type":"box","text":"firm that provides research to BlackRock. To the extent that BlackRock engages in commission sharing","page_number":214,"box":{"x":116,"y":818,"width":766,"height":12}},{"id":"0fe29a22-c8fb-41ce-b281-482a9991f848","block_type":"box","text":"arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":214,"box":{"x":116,"y":833,"width":636,"height":13}},{"id":"0f4d363d-1dc5-434c-98bd-0c3735b07027","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation,","page_number":214,"box":{"x":117,"y":862,"width":724,"height":12}},{"id":"0a5330a0-33e3-4aa2-b05c-84f88c59e2a7","block_type":"box","text":"ECNs in which BlackRock has an investment or other interest, to the extent permitted by applicable","page_number":214,"box":{"x":117,"y":877,"width":741,"height":12}},{"id":"743a508e-23d6-456e-bb94-4579cf1e9ba3","block_type":"box","text":"II-120","page_number":214,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"0cd2f2ab-74bd-483d-a52f-84504f8a3527","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":214,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7bcd7c31-79db-4b61-8706-f6374abedb97","block_type":"box","text":"law) in executing client securities transactions for certain types of securities. These ECNs may charge","page_number":215,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"5087262d-7e4e-4116-84d3-02b7f6a5ac34","block_type":"box","text":"fees for their services, including access fees and transaction fees. The transaction fees, which are","page_number":215,"box":{"x":116,"y":102,"width":733,"height":13}},{"id":"e1be4f30-a4ab-4ee2-9d1e-136bc18cf0b6","block_type":"box","text":"similar to commissions or markups/markdowns, will generally be charged to clients and, like","page_number":215,"box":{"x":116,"y":118,"width":686,"height":12}},{"id":"2530bf60-3cd4-4a22-9010-a60a7f207ad4","block_type":"box","text":"commissions and markups/markdowns, would generally be included in the cost of the securities","page_number":215,"box":{"x":116,"y":134,"width":715,"height":12}},{"id":"30c06db6-88a5-4071-94c3-451a41f97d40","block_type":"box","text":"purchased. Access fees may be paid by BlackRock even though incurred in connection with executing","page_number":215,"box":{"x":117,"y":149,"width":763,"height":12}},{"id":"c1c84ce5-0a8d-46bd-96c5-e9f0433a72dd","block_type":"box","text":"transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer","page_number":215,"box":{"x":116,"y":165,"width":715,"height":12}},{"id":"3c54a8dd-d996-4321-887c-5ecf4d74bf05","block_type":"box","text":"volume discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only","page_number":215,"box":{"x":116,"y":180,"width":733,"height":12}},{"id":"dd441995-a4a0-4bfc-8828-19b6522f3ddb","block_type":"box","text":"utilize ECNs consistent with its obligation to seek to obtain best execution in client transactions.","page_number":215,"box":{"x":117,"y":196,"width":711,"height":12}},{"id":"56f4fd4c-f0e8-4c13-b50f-ebad8ca6a6d3","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly","page_number":215,"box":{"x":117,"y":227,"width":739,"height":12}},{"id":"b4d845d7-9d2c-491b-9afb-28af6981ffe5","block_type":"box","text":"created U.S. stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers","page_number":215,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"0001fe7d-96a9-4afb-8055-82819157595a","block_type":"box","text":"select MEMX as the appropriate venue for execution of orders placed by BlackRock traders on behalf","page_number":215,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"bd52144d-9ae7-46b0-a2e8-19051b2b2ce8","block_type":"box","text":"of client portfolios.","page_number":215,"box":{"x":116,"y":273,"width":140,"height":12}},{"id":"64c790ce-96cd-432b-8474-2ab294d22cc5","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from","page_number":215,"box":{"x":117,"y":304,"width":697,"height":12}},{"id":"a7a0c9e3-9f68-48c6-b2bb-50bb210a0e4a","block_type":"box","text":"influencing proxy voting decisions that it makes on behalf of advisory clients, including the Funds, and","page_number":215,"box":{"x":117,"y":320,"width":759,"height":12}},{"id":"dff18ba7-aec3-4d86-865c-1198449fb27e","block_type":"box","text":"to help ensure that such decisions are made in accordance with BlackRock’s fiduciary obligations to its","page_number":215,"box":{"x":116,"y":335,"width":768,"height":12}},{"id":"6af81181-096f-4fb1-bd06-f829b2e3e68f","block_type":"box","text":"clients. Nevertheless, notwithstanding such proxy voting policies and procedures, actual proxy voting","page_number":215,"box":{"x":116,"y":351,"width":754,"height":12}},{"id":"0dcaccf7-ec15-467e-83b9-30e66f2aecab","block_type":"box","text":"decisions of BlackRock may have the effect of favoring the interests of other clients or businesses of","page_number":215,"box":{"x":116,"y":366,"width":750,"height":12}},{"id":"7bca0d3e-e88c-4981-beb9-1c28c7fc1268","block_type":"box","text":"other divisions or units of BlackRock, provided that BlackRock believes such voting decisions to be in","page_number":215,"box":{"x":116,"y":382,"width":756,"height":12}},{"id":"616ecb9e-6647-4d57-b2ec-df36c6990644","block_type":"box","text":"accordance with its fiduciary obligations. For a more detailed discussion of these policies and","page_number":215,"box":{"x":116,"y":397,"width":696,"height":12}},{"id":"5e0e8a7f-be0a-466c-a8f5-6ac8cdf6ea1f","block_type":"box","text":"procedures, see “Proxy Voting Policies and Procedures.”","page_number":215,"box":{"x":117,"y":413,"width":426,"height":12}},{"id":"890d3f7e-5524-487b-a54c-0f3fd8dab485","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds","page_number":215,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"e041b30c-1a91-42ba-a93b-dda439b29394","block_type":"box","text":"and separately managed accounts) may, subject to compliance with applicable law, purchase and hold","page_number":215,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"bc70b679-9a0b-458a-9072-c9970d91b24a","block_type":"box","text":"shares of a Fund. Increasing a Fund’s assets may enhance investment flexibility and diversification","page_number":215,"box":{"x":116,"y":475,"width":740,"height":12}},{"id":"30479326-0f36-4e11-9471-6e9463d836f9","block_type":"box","text":"and may contribute to economies of scale that tend to reduce the Fund’s expense ratio. BlackRock","page_number":215,"box":{"x":116,"y":490,"width":738,"height":12}},{"id":"3ec34769-ee80-4008-ba1b-1d830e734417","block_type":"box","text":"reserves the right, subject to compliance with applicable law, to redeem at any time some or all of the","page_number":215,"box":{"x":117,"y":506,"width":756,"height":12}},{"id":"dd755eec-d06a-4c71-a7cf-113babca3c03","block_type":"box","text":"shares of a Fund acquired for its own accounts. A large redemption of shares of a Fund by BlackRock","page_number":215,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"bae9820d-1575-4ba8-91a9-1e8894093055","block_type":"box","text":"could significantly reduce the asset size of the Fund, which might have an adverse effect on the Fund’s","page_number":215,"box":{"x":116,"y":537,"width":770,"height":12}},{"id":"96991bd0-45b5-4e11-9ea7-d10e79ed91fa","block_type":"box","text":"investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to consider the effect","page_number":215,"box":{"x":117,"y":552,"width":766,"height":12}},{"id":"f3726c3c-0cdf-41c2-92b5-e1dd438a0c1e","block_type":"box","text":"of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is not","page_number":215,"box":{"x":116,"y":568,"width":754,"height":12}},{"id":"e333aa7f-9d12-4eba-8fe8-abbdffe194b2","block_type":"box","text":"obligated to do so and may elect not to do so.","page_number":215,"box":{"x":116,"y":583,"width":344,"height":12}},{"id":"c1ae5164-9eb6-4cd8-9807-70352476f872","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in","page_number":215,"box":{"x":117,"y":614,"width":725,"height":12}},{"id":"80cd3e5b-07f1-4605-a6d0-0dc8c82ebd44","block_type":"box","text":"which BlackRock has significant debt or equity investments or other interests. A Fund may also invest","page_number":215,"box":{"x":116,"y":630,"width":759,"height":12}},{"id":"b1fd44fd-ac57-43ad-a0b1-94b3ee429190","block_type":"box","text":"in issuances (such as structured notes) by entities for which BlackRock provides and is compensated","page_number":215,"box":{"x":117,"y":645,"width":756,"height":12}},{"id":"62c9307b-510a-4936-933f-a493be9b8811","block_type":"box","text":"for cash management services relating to the proceeds from the sale of such issuances. In making","page_number":215,"box":{"x":116,"y":661,"width":732,"height":12}},{"id":"3fcca5b8-33cb-4ab6-a928-9f2bed5cc7e6","block_type":"box","text":"investment decisions for a Fund, BlackRock is not permitted to obtain or use material non-public","page_number":215,"box":{"x":117,"y":676,"width":713,"height":12}},{"id":"e313077b-d459-47ed-b5b4-75bbb13ced48","block_type":"box","text":"information acquired by any unit of BlackRock, in the course of these activities. In addition, from time to","page_number":215,"box":{"x":117,"y":692,"width":765,"height":12}},{"id":"3fb9f628-80d0-4c40-bc78-fe3b978aa4be","block_type":"box","text":"time, the activities of BlackRock may limit a Fund’s flexibility in purchases and sales of securities. As","page_number":215,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"a697d7a4-f2b6-415d-9004-e68b9d7a0796","block_type":"box","text":"indicated below, BlackRock may engage in transactions with companies in which BlackRock-advised","page_number":215,"box":{"x":117,"y":723,"width":747,"height":12}},{"id":"c660ad97-b024-41b9-9871-0a0e8e2d485f","block_type":"box","text":"funds or other clients of BlackRock have an investment.","page_number":215,"box":{"x":116,"y":738,"width":413,"height":10}},{"id":"7faf91be-e74e-40a4-bc94-3653769c0a01","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting","page_number":215,"box":{"x":117,"y":769,"width":727,"height":12}},{"id":"aafcd2fe-6df7-44b2-88e2-be2e817c2988","block_type":"box","text":"sales of the Funds. With respect to BlackRock and its personnel, the remuneration and profitability","page_number":215,"box":{"x":116,"y":785,"width":730,"height":12}},{"id":"ffee5a14-7470-4287-9a6c-3046857bf43b","block_type":"box","text":"relating to services to and sales of the Funds or other products may be greater than remuneration and","page_number":215,"box":{"x":117,"y":800,"width":756,"height":12}},{"id":"f286e3cf-4265-4e40-9d5a-9654ca9fecbb","block_type":"box","text":"profitability relating to services to and sales of certain funds or other products that might be provided or","page_number":215,"box":{"x":117,"y":816,"width":763,"height":12}},{"id":"7a933f1a-7a6e-4164-91b8-395e3cc07a68","block_type":"box","text":"offered. BlackRock and its sales personnel may directly or indirectly receive a portion of the fees and","page_number":215,"box":{"x":116,"y":831,"width":753,"height":12}},{"id":"34055993-844c-4e64-8766-0bb90f19e632","block_type":"box","text":"commissions charged to the Funds or their shareholders. BlackRock and its advisory or other","page_number":215,"box":{"x":116,"y":847,"width":698,"height":12}},{"id":"6e90861d-bccd-4f90-88d8-c01bf3640312","block_type":"box","text":"personnel may also benefit from increased amounts of assets under management. Fees and","page_number":215,"box":{"x":117,"y":862,"width":692,"height":12}},{"id":"a95b209b-e4bc-4d87-bb7e-59650ddfbee2","block_type":"box","text":"commissions may also be higher than for other products or services, and the remuneration and","page_number":215,"box":{"x":116,"y":878,"width":711,"height":12}},{"id":"ffa74d80-6b6f-4938-b748-f48e2dbb1c0d","block_type":"box","text":"II-121","page_number":215,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"4e2d7986-0191-4621-a5a7-57a3ea8309b5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":215,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fa2b1883-7c72-4910-b959-48c7c09cf242","block_type":"box","text":"profitability to BlackRock and such personnel resulting from transactions on behalf of or management","page_number":216,"box":{"x":117,"y":87,"width":756,"height":12}},{"id":"77136fa7-1065-44cf-96ac-07d50c2eeff7","block_type":"box","text":"of the Funds may be greater than the remuneration and profitability resulting from other funds or","page_number":216,"box":{"x":116,"y":102,"width":719,"height":13}},{"id":"3a741e53-b6f5-4038-bdb9-577d039bccc7","block_type":"box","text":"products.","page_number":216,"box":{"x":117,"y":118,"width":73,"height":12}},{"id":"73a68b32-31a6-4cbc-9663-049c0ef8d4fa","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":216,"box":{"x":117,"y":149,"width":769,"height":12}},{"id":"9b425220-ee58-4d1d-b764-999456ce9d89","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the","page_number":216,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"03e5f30b-a6a3-4357-8f1a-9c736279784a","block_type":"box","text":"valuations for the same securities or investments assigned by a Fund’s pricing vendors, especially if","page_number":216,"box":{"x":116,"y":180,"width":747,"height":12}},{"id":"c3d58a77-b1f1-43f8-9b36-3bfa57c15277","block_type":"box","text":"such valuations are based on broker-dealer quotes or other data sources unavailable to the Fund’s","page_number":216,"box":{"x":116,"y":196,"width":739,"height":11}},{"id":"3b1131fd-881b-487c-98ca-8b4fd2fb9c2f","block_type":"box","text":"pricing vendors. While BlackRock will generally communicate its valuation information or","page_number":216,"box":{"x":117,"y":211,"width":660,"height":12}},{"id":"9947540d-3821-458e-bba2-cb126fe4100b","block_type":"box","text":"determinations to a Fund’s pricing vendors and/or fund accountants, there may be instances where the","page_number":216,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"c395326a-8d04-4f75-984e-94a8ae86fcd9","block_type":"box","text":"Fund’s pricing vendors or fund accountants assign a different valuation to a security or other","page_number":216,"box":{"x":117,"y":242,"width":688,"height":12}},{"id":"86a5002e-a10f-4f2f-8bdd-a7267ffeae6d","block_type":"box","text":"investment than the valuation for such security or investment determined or recommended by","page_number":216,"box":{"x":117,"y":258,"width":699,"height":12}},{"id":"ebbd5a43-aeeb-480e-b24a-8b454c1f3eb9","block_type":"box","text":"BlackRock.","page_number":216,"box":{"x":117,"y":273,"width":88,"height":10}},{"id":"915a0f5d-54d8-4740-af01-9389d3b279b3","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when","page_number":216,"box":{"x":116,"y":304,"width":762,"height":12}},{"id":"3d427b0e-00eb-455c-9213-9170f4f8c414","block_type":"box","text":"market quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s","page_number":216,"box":{"x":117,"y":320,"width":736,"height":12}},{"id":"3ea2e56a-b775-4a2c-abaa-1c0c868aeb60","block_type":"box","text":"investments are valued at fair value by BlackRock. BlackRock has been designated as the Fund’s","page_number":216,"box":{"x":117,"y":335,"width":730,"height":12}},{"id":"09850318-1e7b-4315-95b9-509df2af9768","block_type":"box","text":"valuation designee pursuant to Rule 2a-5 under the Investment Company Act and acts through","page_number":216,"box":{"x":116,"y":351,"width":710,"height":12}},{"id":"eb89c7f7-87b5-421e-804a-a1e0c2a42ded","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with assistance from other BlackRock","page_number":216,"box":{"x":117,"y":366,"width":723,"height":12}},{"id":"23a50746-5a01-42ac-bfa1-0e7fa181392d","block_type":"box","text":"pricing committees and in accordance with BlackRock’s policies and procedures (the “Valuation","page_number":216,"box":{"x":117,"y":382,"width":713,"height":12}},{"id":"6a20985f-5961-4171-a5c6-e5a0336b9410","block_type":"box","text":"Procedures”). 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There may be limited availability of derivatives that provide indirect exposure to","page_number":218,"box":{"x":117,"y":490,"width":769,"height":12}},{"id":"cea90c93-6e21-413d-a11c-55ff45c6c6bc","block_type":"box","text":"an impacted security. BlackRock clients can be subject to more than one ownership limitation","page_number":218,"box":{"x":116,"y":506,"width":698,"height":12}},{"id":"adec0195-a234-42a3-b786-62b7bd2d64e2","block_type":"box","text":"depending on each client’s holdings, and each ownership limitation can impact multiple securities held","page_number":218,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"6d7c2a4b-d030-417c-89d0-a2c02f2266a0","block_type":"box","text":"by the client. 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The issuer and/or regulator may also require that","page_number":219,"box":{"x":117,"y":87,"width":734,"height":12}},{"id":"ab5526ae-5930-4020-84e1-82e015759845","block_type":"box","text":"BlackRock on behalf of itself and its clients take or refrain from taking certain actions in connection with","page_number":219,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"243bb47f-4392-47de-82d5-10f253d714fc","block_type":"box","text":"the approval, order, consent, relief or non-disapproval, which BlackRock may accept if it believes the","page_number":219,"box":{"x":116,"y":118,"width":752,"height":12}},{"id":"d96b5048-f5fb-488e-bce3-0c0eebb3560f","block_type":"box","text":"benefits outweigh the costs and may limit BlackRock from taking actions that it otherwise would take.","page_number":219,"box":{"x":117,"y":134,"width":753,"height":12}},{"id":"e0c3a235-d047-4932-9977-eee8dddc8385","block_type":"box","text":"In those circumstances where ownership thresholds or limitations must be observed, BlackRock seeks","page_number":219,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"711d1bde-ee87-45bd-960e-6210a1ec92ea","block_type":"box","text":"to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":219,"box":{"x":116,"y":165,"width":693,"height":12}},{"id":"e0f81fe9-1bef-49df-aedc-c26a021fb262","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent","page_number":219,"box":{"x":117,"y":180,"width":767,"height":12}},{"id":"d45e5110-eaa1-4950-8254-2207f53891b0","block_type":"box","text":"the occurrence of a breach of any applicable ownership threshold or limits, including, for example,","page_number":219,"box":{"x":116,"y":196,"width":731,"height":12}},{"id":"6179d16d-d173-403b-a7f1-3084c5e34870","block_type":"box","text":"when ownership in certain securities nears an applicable threshold, BlackRock may limit additional","page_number":219,"box":{"x":116,"y":211,"width":736,"height":12}},{"id":"42491abc-7e6a-4b58-a7d7-bf6417399783","block_type":"box","text":"purchases in such securities or, with respect to ETFs, remove such securities from the list of Deposit","page_number":219,"box":{"x":117,"y":227,"width":751,"height":11}},{"id":"cf0d2e0c-54e1-46a8-b6a6-43643c717d33","block_type":"box","text":"Securities to be delivered to the Fund in connection with purchases of Creation Units of such Fund. 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To t","page_number":219,"box":{"x":117,"y":481,"width":346,"height":12}},{"id":"79e6bf8c-c8a7-4149-a5c4-c0a29ab642aa","block_type":"box","text":"he extent permitted by applicable laws, the Funds may","page_number":219,"box":{"x":464,"y":481,"width":401,"height":12}},{"id":"006cb64a-c6bb-4e09-a75a-d246803fc989","block_type":"box","text":"seek to license and use such indices as part of their investment strategy. Index based funds that seek to","page_number":219,"box":{"x":116,"y":496,"width":762,"height":12}},{"id":"d66b73ea-2bcf-4d1f-9d33-f509b0070163","block_type":"box","text":"track the performance of securities indices also may us","page_number":219,"box":{"x":116,"y":512,"width":400,"height":12}},{"id":"0a3a37e8-4953-422d-b0e4-c5c8babcb748","block_type":"box","text":"e the name of the index or index provider in the","page_number":219,"box":{"x":517,"y":512,"width":348,"height":12}},{"id":"72bf1c6c-7ea8-479b-b2c8-1b6a532b0d71","block_type":"box","text":"fund name. 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BlackRock ma","page_number":219,"box":{"x":116,"y":574,"width":382,"height":12}},{"id":"ac9b3098-53af-42df-8b65-7c9f5181bce1","block_type":"box","text":"y benefit from the Funds using BlackRock indices by","page_number":219,"box":{"x":498,"y":574,"width":386,"height":12}},{"id":"134730e8-a2d1-4fea-89a1-c2d143be130e","block_type":"box","text":"creating increasing acceptance in the marketplace for","page_number":219,"box":{"x":116,"y":589,"width":394,"height":12}},{"id":"100eb872-bd72-49f2-93fb-fc1d8dd96f46","block_type":"box","text":"such indices. BlackRock is not obligated to license","page_number":219,"box":{"x":510,"y":589,"width":371,"height":12}},{"id":"026aed51-7084-4bea-99d7-5d53f9f4c607","block_type":"box","text":"its indices to a Fund and the Funds are under no obli","page_number":219,"box":{"x":117,"y":605,"width":382,"height":9}},{"id":"59b1f4f6-feed-4917-9d0f-189b051bab16","block_type":"box","text":"gation to use BlackRock indices. Any Fund that","page_number":219,"box":{"x":500,"y":605,"width":348,"height":12}},{"id":"a692520b-3763-4470-bcdb-0dd16dc3e2f6","block_type":"box","text":"enters into a license for a BlackRock index cannot be assured that the terms of any index licensing","page_number":219,"box":{"x":116,"y":620,"width":722,"height":12}},{"id":"7bd50959-c7f7-45c1-9535-57602cca734a","block_type":"box","text":"agreement with BlackRock will be as favorable as","page_number":219,"box":{"x":116,"y":636,"width":360,"height":12}},{"id":"2b97a8df-4a74-4636-b85b-c2521fc71455","block_type":"box","text":"those terms offered to other licensees.","page_number":219,"box":{"x":477,"y":636,"width":289,"height":9}},{"id":"c4dce6e6-bc47-40c7-9447-e3f3651c7653","block_type":"box","text":"BlackRock may enter into contractual arrangements wit","page_number":219,"box":{"x":117,"y":664,"width":401,"height":12}},{"id":"c61e0b01-7a79-428a-b9a3-ce1aec0121b8","block_type":"box","text":"h third-party service providers to a Fund (e.g.,","page_number":219,"box":{"x":520,"y":664,"width":330,"height":12}},{"id":"c7d7e732-b874-4d53-9df9-d4926fd4d91e","block_type":"box","text":"custodians, administrators and index providers) purs","page_number":219,"box":{"x":116,"y":679,"width":381,"height":12}},{"id":"d6f7e421-8e4f-47a6-9b08-dcff18703848","block_type":"box","text":"uant to which BlackRock receives fee discounts or","page_number":219,"box":{"x":498,"y":679,"width":365,"height":10}},{"id":"2ced54b1-aef7-4e7a-b6ae-8f3040e8568c","block_type":"box","text":"concessions in recognition of BlackRock’s overall relationship with such service providers. BlackRock","page_number":219,"box":{"x":116,"y":695,"width":736,"height":12}},{"id":"e88e0682-caa2-4b93-b839-ccf86f04be33","block_type":"box","text":"may also enter into contractual arrangements with su","page_number":219,"box":{"x":117,"y":710,"width":384,"height":12}},{"id":"31dc2dd6-a2b5-427d-9e5c-6c4eb5c3b575","block_type":"box","text":"ch service providers pursuant to which BlackRock","page_number":219,"box":{"x":503,"y":710,"width":361,"height":12}},{"id":"268848c5-f977-4cb9-a678-f100b56a1120","block_type":"box","text":"incurs additional costs if the service provider’s","page_number":219,"box":{"x":117,"y":726,"width":332,"height":12}},{"id":"49e6fb65-0957-4b73-a2e5-708a6edd32f2","block_type":"box","text":"services are terminated with respect to a Fund. To the","page_number":219,"box":{"x":455,"y":726,"width":392,"height":12}},{"id":"502cd397-7c7d-4f3c-8af2-31b7672d6994","block_type":"box","text":"extent that BlackRock is responsible for paying service","page_number":219,"box":{"x":116,"y":741,"width":397,"height":12}},{"id":"e772998a-f0a2-4dd6-9483-ad78142af6ed","block_type":"box","text":"providers out of its fees that it receives from the","page_number":219,"box":{"x":519,"y":741,"width":344,"height":12}},{"id":"1031daf0-a953-4f44-a126-05bc3510f0b1","block_type":"box","text":"Funds, the benefits of lower fees, including any fee di","page_number":219,"box":{"x":117,"y":757,"width":385,"height":12}},{"id":"f6b205fe-26ab-4e9c-8eb5-971d19d0cac0","block_type":"box","text":"scounts or concessions, or any additional savings,","page_number":219,"box":{"x":504,"y":757,"width":364,"height":12}},{"id":"d49d38ba-0186-4583-8e55-0ab1ab24c08d","block_type":"box","text":"may accrue, in whole or in part, to BlackRock, which coul","page_number":219,"box":{"x":117,"y":772,"width":413,"height":12}},{"id":"66e46210-fa6d-431c-9cca-27051883a939","block_type":"box","text":"d result in conflicts of interest relating to the use","page_number":219,"box":{"x":531,"y":772,"width":346,"height":12}},{"id":"abbb1017-3adc-4755-a673-4804c4ba6240","block_type":"box","text":"or termination of service providers to a Fund. In additi","page_number":219,"box":{"x":116,"y":788,"width":387,"height":12}},{"id":"5bed00bf-731c-4ec6-8605-cde76cc0f1b7","block_type":"box","text":"on, conflicts of interest may arise with respect to","page_number":219,"box":{"x":505,"y":788,"width":349,"height":12}},{"id":"120f2704-b8c3-4605-869b-c6c5542d81e0","block_type":"box","text":"contractual arrangements with third-party service provider","page_number":219,"box":{"x":116,"y":803,"width":420,"height":12}},{"id":"b814c2c8-2269-426d-b2aa-7d8298fdf830","block_type":"box","text":"s to a Fund, or the selection of such providers,","page_number":219,"box":{"x":536,"y":803,"width":336,"height":12}},{"id":"9a601181-6e4d-47bc-b777-92772346c345","block_type":"box","text":"particularly in circumstances where BlackRock is","page_number":219,"box":{"x":117,"y":819,"width":353,"height":12}},{"id":"c209095e-acad-47f8-9751-6b850ac0354a","block_type":"box","text":"negotiating on behalf of both funds that have a unitary","page_number":219,"box":{"x":476,"y":819,"width":391,"height":12}},{"id":"c023c054-34f7-4b37-b051-ef35e6b10592","block_type":"box","text":"management fee and those that do not","page_number":219,"box":{"x":117,"y":834,"width":287,"height":12}},{"id":"35cc9ebf-a529-40de-8bb4-609615dbfb5f","block_type":"box","text":"or different service providers have different fee structures.","page_number":219,"box":{"x":404,"y":834,"width":425,"height":12}},{"id":"58e634e7-66a3-4cfd-8f32-15f72c602db2","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client","page_number":219,"box":{"x":117,"y":862,"width":744,"height":12}},{"id":"14c38778-bca8-479f-809a-372771b641da","block_type":"box","text":"accounts by BlackRock’s investment professionals. For example, differences in the advisory fee","page_number":219,"box":{"x":116,"y":878,"width":716,"height":12}},{"id":"9aa9844f-8c79-4ba3-b7fa-1692fc9dae9f","block_type":"box","text":"II-125","page_number":219,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ac39e033-1689-4f0a-b845-4a0c4708c79c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":219,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"beeeca10-3426-498b-80c7-590c8eab6dbc","block_type":"box","text":"structure may create the appearance of actual or potential conflicts of interest because such","page_number":220,"box":{"x":116,"y":87,"width":689,"height":12}},{"id":"923dfcac-2091-477b-af64-4d25e0e5a05c","block_type":"box","text":"differences could create pecuniary incentives for BlackRock to favor one client account over another.","page_number":220,"box":{"x":116,"y":102,"width":754,"height":13}},{"id":"eb3940d5-cc42-4c1f-9428-1ff0be4fc8df","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/","page_number":220,"box":{"x":117,"y":134,"width":765,"height":12}},{"id":"487ac0ea-bf27-4aa9-bd81-b30cb013c654","block_type":"box","text":"or information systems used by Fund service providers. These systems are, or will be, used by a Fund","page_number":220,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"968d627d-220d-46cb-842b-b12eedf2a316","block_type":"box","text":"service provider in connection with the provision of services to accounts managed by BlackRock and","page_number":220,"box":{"x":116,"y":165,"width":752,"height":12}},{"id":"a64e64ca-f092-42e4-bd21-f5da78e5ee9b","block_type":"box","text":"funds managed and sponsored by BlackRock, including the Funds, that engage the service provider","page_number":220,"box":{"x":116,"y":180,"width":748,"height":12}},{"id":"22a845d8-74f4-44cb-a0a6-c2a987598111","block_type":"box","text":"(typically the custodian). A Fund’s service provider remunerates BlackRock for the use of the systems.","page_number":220,"box":{"x":117,"y":196,"width":764,"height":12}},{"id":"01bd9cc1-c028-4d05-b73f-57d61df90ccd","block_type":"box","text":"A Fund service provider’s payments to BlackRock for the use of these systems may enhance the","page_number":220,"box":{"x":116,"y":211,"width":724,"height":12}},{"id":"7fb86e5f-7059-4eeb-9139-3b2bf9c00905","block_type":"box","text":"profitability of BlackRock.","page_number":220,"box":{"x":117,"y":227,"width":191,"height":12}},{"id":"0a7f39f2-3da0-4b68-9acc-16957c501906","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by","page_number":220,"box":{"x":117,"y":258,"width":757,"height":12}},{"id":"6f8a6b8f-af78-4a83-abbd-b87bab28b735","block_type":"box","text":"BlackRock may create an incentive for BlackRock to recommend that a Fund enter into or renew an","page_number":220,"box":{"x":117,"y":273,"width":745,"height":12}},{"id":"7f470636-349c-4ae4-9858-15e6f8b9ad5b","block_type":"box","text":"arrangement with the service provider.","page_number":220,"box":{"x":116,"y":289,"width":291,"height":12}},{"id":"4537f55c-2007-4cb2-96dc-3ecd6c479aa2","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special","page_number":220,"box":{"x":117,"y":320,"width":762,"height":12}},{"id":"8c0c059f-9ccd-4b60-9ede-83c69d119806","block_type":"box","text":"pricing arrangements for certain services provided by BlackRock. Any such special pricing","page_number":220,"box":{"x":117,"y":335,"width":673,"height":12}},{"id":"b7b03c90-c780-4898-a1b3-141f93e4ff1e","block_type":"box","text":"arrangements will not affect Fund fees and expenses applicable to such client’s investment in a Fund.","page_number":220,"box":{"x":116,"y":351,"width":760,"height":12}},{"id":"fd57e938-044e-43e1-907f-e48dc4953bd9","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":220,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"81429cec-5ecb-4aba-be9a-3c569b222bbc","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":220,"box":{"x":116,"y":397,"width":537,"height":12}},{"id":"5acf6ec4-7273-4a01-9c1c-5d3c3307a303","block_type":"box","text":"P","page_number":220,"box":{"x":418,"y":444,"width":9,"height":9}},{"id":"0f75fa01-00ee-4584-b843-abc90777f2fd","block_type":"box","text":"URCHASE","page_number":220,"box":{"x":429,"y":446,"width":65,"height":7}},{"id":"ef264ec2-635b-429e-a086-594f151a2498","block_type":"box","text":"OF","page_number":220,"box":{"x":500,"y":446,"width":18,"height":7}},{"id":"d127325b-41b1-455f-9b6b-9f49e1e90c2d","block_type":"box","text":"S","page_number":220,"box":{"x":519,"y":444,"width":15,"height":9}},{"id":"a2d02926-7d42-4003-ae43-f1b5a7866f1f","block_type":"box","text":"HARES","page_number":220,"box":{"x":536,"y":446,"width":46,"height":7}},{"id":"0429c3aa-2ae5-44a3-8e1e-1ce77020a55b","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under","page_number":220,"box":{"x":117,"y":475,"width":756,"height":12}},{"id":"3e264fa0-442d-47d3-90d3-23c73182b0e9","block_type":"box","text":"Rule 18f-3 under the Investment Company Act. Investor A Shares are sold to investors choosing the","page_number":220,"box":{"x":117,"y":490,"width":748,"height":12}},{"id":"af206c3f-b86a-4e68-b07f-76e90f09e85f","block_type":"box","text":"initial sales charge alternative, except that Investor A Shares of Index Funds (defined below) and","page_number":220,"box":{"x":117,"y":506,"width":723,"height":12}},{"id":"c34af9d8-6793-4733-8aeb-b6a962d65b4d","block_type":"box","text":"BlackRock Short Obligations Fund are generally not subject to an initial sales charge, and Investor C","page_number":220,"box":{"x":117,"y":521,"width":752,"height":12}},{"id":"0688a2b4-8203-4049-93c5-d055efb98fd8","block_type":"box","text":"Shares are sold to investors choosing the deferred sales charge alternative. Investor P Shares are","page_number":220,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"5934323e-c48e-4f71-a1a0-9c6bc4d7d830","block_type":"box","text":"available only to certain investors purchasing shares of Funds through registered representatives of an","page_number":220,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"0a02a978-80a0-4cc8-81c4-3cb3f1f38019","block_type":"box","text":"insurance company’s broker-dealer that has entered into an agreement with the Distributor to offer","page_number":220,"box":{"x":117,"y":568,"width":734,"height":12}},{"id":"135707ee-d2b9-4448-9b58-e397e9788150","block_type":"box","text":"such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":220,"box":{"x":116,"y":583,"width":692,"height":12}},{"id":"2b6045cd-9851-4cf9-9e70-a861d02240ee","block_type":"box","text":"Certain Funds offer Class R Shares, which are avail","page_number":220,"box":{"x":117,"y":614,"width":367,"height":11}},{"id":"835a2fe2-1e4a-469e-a070-fcc778760ab6","block_type":"box","text":"able only to certain employer-sponsored retirement","page_number":220,"box":{"x":485,"y":614,"width":368,"height":12}},{"id":"ac3e2c14-2b91-4e0b-9399-fc6f3a316e21","block_type":"box","text":"plans and are sold without a sales charge. Certain Funds offer Class G Shares, which are available only to","page_number":220,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"8964775a-1004-41b2-9779-c445d16634d6","block_type":"box","text":"investors on eligible platforms, which are platforms","page_number":220,"box":{"x":117,"y":645,"width":358,"height":12}},{"id":"ab2bf8ce-91fb-44ae-ac05-e4993232cf0a","block_type":"box","text":"where clients invest in the Fund through a single","page_number":220,"box":{"x":475,"y":645,"width":353,"height":12}},{"id":"6b15652d-f336-4cba-a04f-1035bea1a6ab","block_type":"box","text":"omnibus account in the name of a financial intermedi","page_number":220,"box":{"x":116,"y":661,"width":374,"height":9}},{"id":"be9d33af-6ab7-4a2b-8fd7-425c8a4feeb0","block_type":"box","text":"ary that meets an initial investment minimum of","page_number":220,"box":{"x":492,"y":661,"width":335,"height":12}},{"id":"32c0bb57-dbac-4d8d-a520-bd98724931fa","block_type":"box","text":"$2 billion. In addition, certain Funds offer Service Share","page_number":220,"box":{"x":116,"y":675,"width":385,"height":12}},{"id":"85ff00c7-617d-4768-8526-574cac2dc0a6","block_type":"box","text":"res, BlackRock Shares and/or Class K Shares that are","page_number":220,"box":{"x":501,"y":676,"width":382,"height":11}},{"id":"ed928b8b-68dc-4573-932a-7d6ce6a79d92","block_type":"box","text":"available only to certain eligible investors. Pl","page_number":220,"box":{"x":116,"y":692,"width":312,"height":12}},{"id":"66d66a0c-839f-4b76-895d-4fd1d603288d","block_type":"box","text":"ease see the appropriate Prospectus for your Fund to","page_number":220,"box":{"x":429,"y":692,"width":381,"height":12}},{"id":"8092b42d-013e-4625-ac6a-5cbb2be5574f","block_type":"box","text":"determine which classes are offered by your Fund and under","page_number":220,"box":{"x":116,"y":707,"width":434,"height":12}},{"id":"787ab139-b2dc-4afd-835e-a745c6dac5c6","block_type":"box","text":"what circumstances. Each class has different","page_number":220,"box":{"x":553,"y":707,"width":322,"height":10}},{"id":"cc070145-e787-4472-a787-867e2b311fcf","block_type":"box","text":"exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":220,"box":{"x":116,"y":723,"width":516,"height":12}},{"id":"e402648e-d1e4-48c6-8b96-d3431b4ed7ed","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after","page_number":220,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"15b8969c-97c1-4d24-b27b-a31a34b2b889","block_type":"box","text":"receipt of the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has","page_number":220,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"030c8258-57f2-4282-a539-7b007d6fc6ce","block_type":"box","text":"been authorized by the Distributor by contract to accept such orders. In addition, with respect to the","page_number":220,"box":{"x":117,"y":785,"width":737,"height":12}},{"id":"03fa1199-6443-4147-bcc1-0c5c25e4d37d","block_type":"box","text":"affiliated underlying funds in which target date funds advised by BlackRock or its affiliates (“BlackRock","page_number":220,"box":{"x":116,"y":800,"width":759,"height":12}},{"id":"02bff8ee-13c1-468d-976c-2fe50dba8b72","block_type":"box","text":"Target Date Funds”) invest, the applicable offering price of each affiliated underlying fund is based on","page_number":220,"box":{"x":116,"y":816,"width":752,"height":12}},{"id":"5baf8ce9-b0c4-4e48-b8d0-0f26b5289719","block_type":"box","text":"the NAV of such affiliated underlying fund next determined after a purchase order is received, or","page_number":220,"box":{"x":116,"y":831,"width":718,"height":12}},{"id":"e69e54af-0e80-4e40-96f8-a785983875ad","block_type":"box","text":"deemed to be received upon receipt by a Selling Dealer, by the BlackRock Target Date Funds that","page_number":220,"box":{"x":116,"y":847,"width":736,"height":12}},{"id":"c948dd63-69f0-468d-b717-f324807a58ed","block_type":"box","text":"allocate a portion of such purchase order to such affiliated underlying fund. As to purchase orders","page_number":220,"box":{"x":116,"y":862,"width":730,"height":12}},{"id":"50ced0bb-97a0-4957-87b7-eff336f52633","block_type":"box","text":"received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New","page_number":220,"box":{"x":117,"y":878,"width":765,"height":12}},{"id":"c410ea38-a1eb-4fc5-8ec4-1e0d480db38f","block_type":"box","text":"II-126","page_number":220,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"0ccda2d3-8122-4aec-9602-a090fa3eb07e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":220,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"afd55a5d-fa87-40d6-b525-bd228c3c59a1","block_type":"box","text":"York Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":221,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"d0e2d619-3fa1-4506-84a7-7eb9f46d6f9d","block_type":"box","text":"order is placed, including orders received after the close of business on the previous day, the","page_number":221,"box":{"x":116,"y":102,"width":696,"height":13}},{"id":"087bcf83-b8a6-4ba1-8af7-af7f658ddc99","block_type":"box","text":"applicable offering price is based on the NAV determined as of the close of business on the NYSE on","page_number":221,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"54d5c17c-f2f1-42b4-ad99-9711bc3c7b7a","block_type":"box","text":"that day. If the purchase orders are not received by the Selling Dealer or a BlackRock Target Date","page_number":221,"box":{"x":116,"y":134,"width":734,"height":12}},{"id":"a80e60d2-6332-4d64-baec-603c50560001","block_type":"box","text":"Fund before the close of business on the NYSE, such orders are deemed received on the next","page_number":221,"box":{"x":117,"y":149,"width":706,"height":11}},{"id":"727f5fd5-2773-480b-b0a7-0948d4f02047","block_type":"box","text":"business day. It is the responsibility of brokers to transmit purchase orders and payment on a timely","page_number":221,"box":{"x":117,"y":165,"width":745,"height":12}},{"id":"f9fbc3fb-6705-485d-9e8e-d9e4297d071d","block_type":"box","text":"basis. Generally, if payment is not received within the period described in the Prospectuses, the order","page_number":221,"box":{"x":117,"y":180,"width":758,"height":12}},{"id":"a101d7de-5895-4091-8b20-945be4814e0f","block_type":"box","text":"will be canceled, notice thereof will be given, and","page_number":221,"box":{"x":116,"y":196,"width":368,"height":12}},{"id":"0f75e46f-4196-414b-9471-88b325b8099c","block_type":"box","text":"the broker and its customers will be responsible for","page_number":221,"box":{"x":484,"y":196,"width":384,"height":11}},{"id":"10492563-1625-4262-a970-f3f62c7b2b9b","block_type":"box","text":"any loss to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the","page_number":221,"box":{"x":116,"y":210,"width":743,"height":13}},{"id":"b1bb22b9-334b-4435-851d-c7a8daac7e34","block_type":"box","text":"Transfer Agent.","page_number":221,"box":{"x":116,"y":227,"width":120,"height":12}},{"id":"fb21f2b5-2ce2-49f3-b858-f6b41fab1363","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund.","page_number":221,"box":{"x":116,"y":258,"width":766,"height":11}},{"id":"15985c85-b2df-4f76-ac5a-d010173ea69b","block_type":"box","text":"The minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or","page_number":221,"box":{"x":116,"y":273,"width":758,"height":12}},{"id":"ec1e5a1b-cbf1-43ae-9600-a128a73e966b","block_type":"box","text":"employees of their affiliates is $100, unless payment is made through a payroll deduction program in","page_number":221,"box":{"x":116,"y":288,"width":751,"height":13}},{"id":"94407d49-b6a1-4e04-8291-edde6a20c130","block_type":"box","text":"which case the minimum investment is $25.","page_number":221,"box":{"x":116,"y":303,"width":329,"height":12}},{"id":"4adfba1f-3cef-4f50-8f24-3061c35ba26b","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase","page_number":221,"box":{"x":117,"y":335,"width":749,"height":12}},{"id":"f6bd2586-126b-4950-b15e-0fa2c0fafde8","block_type":"box","text":"Institutional Shares, including selected fee-based programs. Each Fund may permit a lower initial","page_number":221,"box":{"x":117,"y":351,"width":726,"height":12}},{"id":"3b68fe74-a234-4ecf-bbd8-e224ca876580","block_type":"box","text":"investment for certain investors if their purchase, combined with purchases by other investors received","page_number":221,"box":{"x":117,"y":366,"width":766,"height":12}},{"id":"6817356c-2638-4502-aba2-949aab2e209e","block_type":"box","text":"together by the Fund, meets the minimum investment requirement. Each Fund may reject any","page_number":221,"box":{"x":116,"y":382,"width":702,"height":12}},{"id":"ef9b8e0a-7439-48aa-9976-303117d554ef","block_type":"box","text":"purchase order, modify or waive the minimum initial or subsequent investment requirements and","page_number":221,"box":{"x":117,"y":397,"width":720,"height":12}},{"id":"b6371ee2-5d8f-4e89-9a6c-32e88bd4107c","block_type":"box","text":"suspend and resume the sale of any share class of any Fund at any time.","page_number":221,"box":{"x":116,"y":413,"width":551,"height":12}},{"id":"b803bc38-a980-43e6-9ebe-c22bd6e29b1c","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance","page_number":221,"box":{"x":117,"y":444,"width":758,"height":12}},{"id":"e0f5a6b5-ac88-4080-8133-38693c253f4e","block_type":"box","text":"with a financial intermediary’s policies and procedures, exchange shares of a Fund from one class of","page_number":221,"box":{"x":116,"y":459,"width":753,"height":12}},{"id":"8d3b7247-7922-4371-b6c7-0992e53d1e3e","block_type":"box","text":"shares to another class of shares of the same Fund, provided that the exchanged shares are not","page_number":221,"box":{"x":116,"y":475,"width":722,"height":12}},{"id":"02790f8a-8869-4e2c-ab9a-c62771d351b0","block_type":"box","text":"subject to a contingent deferred sales charge (“CDSC”) and that shareholders meet eligibility","page_number":221,"box":{"x":116,"y":490,"width":693,"height":12}},{"id":"a39d3232-324e-449a-9ad9-bb4731003bc2","block_type":"box","text":"requirements of the new share class. Please speak to your financial intermediary for information about","page_number":221,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"ff799c2f-b663-4ab4-a55a-abe6d7958501","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":221,"box":{"x":116,"y":521,"width":448,"height":12}},{"id":"76a17122-489b-4124-bc70-d5f894c8a0eb","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at","page_number":221,"box":{"x":117,"y":552,"width":763,"height":12}},{"id":"324939d3-5ad9-42e0-a157-82a3f39a8033","block_type":"box","text":"any time in response to conditions in the securities markets or otherwise and may resume offering the","page_number":221,"box":{"x":116,"y":568,"width":761,"height":12}},{"id":"ea2d18c2-9a3c-42b5-b261-c6c5a06f5582","block_type":"box","text":"shares from time to time. Any order may be rejected by a Fund or the Distributor. Neither the","page_number":221,"box":{"x":116,"y":583,"width":693,"height":12}},{"id":"137c18da-43d4-425c-9871-2259e980f0fb","block_type":"box","text":"Distributor, the securities dealers nor other financial intermediaries are permitted to withhold placing","page_number":221,"box":{"x":117,"y":599,"width":744,"height":12}},{"id":"cbb94411-9512-4164-b251-67a59d28c263","block_type":"box","text":"orders to benefit themselves by a price change.","page_number":221,"box":{"x":116,"y":614,"width":358,"height":12}},{"id":"4e08fe78-fa4e-4cbe-a843-0832f12587ec","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an","page_number":221,"box":{"x":116,"y":645,"width":729,"height":12}},{"id":"3c754115-9405-4d49-bb81-2795e63a5ee1","block_type":"box","text":"individual, (ii) concurrent purchases by an individual, his or her spouse and their children purchasing","page_number":221,"box":{"x":117,"y":661,"width":742,"height":12}},{"id":"5fa74104-654d-465d-9f39-35e3acf31fa4","block_type":"box","text":"shares for his, her or their own account, and (iii) single purchases by a trustee or other fiduciary","page_number":221,"box":{"x":116,"y":676,"width":709,"height":12}},{"id":"9a8a5845-9ef9-4c43-9734-e7455d0f3cbd","block_type":"box","text":"purchasing shares for a single trust estate or single fiduciary account although more than one","page_number":221,"box":{"x":117,"y":692,"width":693,"height":12}},{"id":"c749f914-388e-4450-98bf-d6a0d9699ff3","block_type":"box","text":"beneficiary may be involved. The term “purchase” also includes purchases by any “company,” as that","page_number":221,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"cb41f1fd-a410-4f88-87d9-48d315b821c6","block_type":"box","text":"term is defined in the Investment Company Act, but does not include purchases by (i) any company","page_number":221,"box":{"x":116,"y":723,"width":738,"height":12}},{"id":"2082efaf-0dcb-4d96-816c-f90f1d51288c","block_type":"box","text":"that has not been in existence for at least six months, (ii) a company that has no purpose other than","page_number":221,"box":{"x":116,"y":738,"width":740,"height":12}},{"id":"a94e93f5-3c84-454d-9c31-ec78ac15d7b7","block_type":"box","text":"the purchase of shares of a Fund or shares of other registered investment companies at a discount, or","page_number":221,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"0831d1c1-5ff7-4961-bb3f-3b2d01e7b8eb","block_type":"box","text":"(iii) any group of individuals whose sole organizational nexus is that its participants are credit","page_number":221,"box":{"x":117,"y":769,"width":687,"height":12}},{"id":"f1e55f8f-ee88-4dda-b06b-73786d44cf83","block_type":"box","text":"cardholders of a company, policyholders of an insurance company, customers of either a bank or","page_number":221,"box":{"x":116,"y":785,"width":721,"height":12}},{"id":"9e71919d-8eb5-491f-a62e-8bc286572831","block_type":"box","text":"broker-dealer or clients of an investment adviser.","page_number":221,"box":{"x":117,"y":800,"width":361,"height":10}},{"id":"c4ad52ed-7281-4a37-a8c2-fcbea03f7d8b","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the","page_number":221,"box":{"x":116,"y":831,"width":725,"height":12}},{"id":"e835fac4-93d0-42c8-b41d-f706705cb3f0","block_type":"box","text":"United States and may not be distributed by a foreign financial intermediary. Under this policy, in order","page_number":221,"box":{"x":117,"y":847,"width":764,"height":12}},{"id":"58cd81d1-55dc-41c8-bb23-8f250e9f09e5","block_type":"box","text":"to accept new accounts or additional investments (including by way of exchange from another Fund)","page_number":221,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"95b378af-7837-46b0-b7e2-585d756a6c5e","block_type":"box","text":"into existing accounts, a Fund generally requires that (i) a shareholder that is a natural person be a","page_number":221,"box":{"x":117,"y":878,"width":738,"height":12}},{"id":"bba1f1f2-bbc5-44e5-8d4b-30c463a5748e","block_type":"box","text":"II-127","page_number":221,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"bedfe092-607d-4dc7-9cf6-bb39af32a532","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":221,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7e61c7d7-3006-4902-9f74-e00b45ffcc95","block_type":"box","text":"U.S. citizen or resident alien, in each case residing within the United States or a U.S. territory","page_number":222,"box":{"x":117,"y":87,"width":695,"height":12}},{"id":"d6fbdc51-0c3a-45fc-bdca-2fa5ef3ed348","block_type":"box","text":"(including APO/FPO/DPO addresses), and have a valid U.S. taxpayer identification number, and (ii) a","page_number":222,"box":{"x":117,"y":102,"width":757,"height":13}},{"id":"224d4336-6c63-4c23-a51a-4eafaba20168","block_type":"box","text":"financial intermediary or a shareholder that is an entity be domiciled in the United States and have a","page_number":222,"box":{"x":116,"y":118,"width":747,"height":12}},{"id":"426841ad-5e97-4c32-8de2-c7a958d2d42a","block_type":"box","text":"valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":222,"box":{"x":116,"y":134,"width":720,"height":12}},{"id":"f3782142-9a77-40b7-afe7-a5af283d0b9e","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a","page_number":222,"box":{"x":116,"y":149,"width":723,"height":12}},{"id":"1fb4b288-4593-41c4-a303-849654fd6535","block_type":"box","text":"non-U.S. address will also be restricted from making additional investments.","page_number":222,"box":{"x":117,"y":165,"width":568,"height":12}},{"id":"416027b6-94d6-4c3e-8b7e-4b6f1cacfedf","block_type":"box","text":"In-Kind Purchases.","page_number":222,"box":{"x":117,"y":197,"width":139,"height":9}},{"id":"969d6622-0d75-40fa-887b-180f68fc7777","block_type":"box","text":"Payment for shares of a Fund may, at the discretion of BlackRock, be made in the","page_number":222,"box":{"x":258,"y":197,"width":620,"height":12}},{"id":"95bd7f53-5ddc-4cb3-9942-e45803fcdcc8","block_type":"box","text":"form of securities that are permissible investments for the Fund and that meet the investment objective,","page_number":222,"box":{"x":116,"y":212,"width":772,"height":12}},{"id":"e5f408a2-04e7-46b9-bc6a-8f7b54780a40","block_type":"box","text":"policies and limitations of the Fund as described herein. In connection with an in-kind securities","page_number":222,"box":{"x":117,"y":228,"width":710,"height":12}},{"id":"f42f5ab6-cdb8-4f62-84a2-152b76cf84c4","block_type":"box","text":"payment, the Fund may require, among other things, that the securities: (i) be valued on the day of","page_number":222,"box":{"x":117,"y":243,"width":736,"height":12}},{"id":"f5bfebff-5413-459f-be83-98a96714f024","block_type":"box","text":"purchase in accordance with the pricing methods used by the Fund; (ii) be accompanied by","page_number":222,"box":{"x":117,"y":259,"width":682,"height":12}},{"id":"48d8d04b-be4d-45f5-8331-9bdd6ec985a8","block_type":"box","text":"satisfactory assurance that the Fund will have good and marketable title to such securities; (iii) not be","page_number":222,"box":{"x":116,"y":274,"width":757,"height":13}},{"id":"6e8c8b33-2b76-4009-b7e5-d6efc1bfdcd2","block_type":"box","text":"subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to the Fund; and","page_number":222,"box":{"x":116,"y":290,"width":760,"height":12}},{"id":"c0a5ad0d-6f9f-4643-b92e-d22d17bc279d","block_type":"box","text":"(v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":222,"box":{"x":117,"y":305,"width":766,"height":13}},{"id":"6d51a398-51ba-4913-9525-937f839328e0","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become","page_number":222,"box":{"x":116,"y":321,"width":769,"height":12}},{"id":"6e093d51-9b0a-4ca9-ab19-53a8bef736a1","block_type":"box","text":"the property of the Fund engaged in the in-kind purchase transaction and must be delivered to the","page_number":222,"box":{"x":116,"y":336,"width":732,"height":13}},{"id":"de3d383e-7613-4bed-80a1-e0d29e407619","block_type":"box","text":"Fund by the investor upon receipt from the issuer. Shares purchased in exchange for securities","page_number":222,"box":{"x":117,"y":352,"width":711,"height":12}},{"id":"2d71f946-f0e1-480b-8656-273c34394b9f","block_type":"box","text":"generally cannot be redeemed until the transfer has settled.","page_number":222,"box":{"x":116,"y":367,"width":448,"height":13}},{"id":"12e5d8ac-f577-4b7e-89e1-fb0292844b73","block_type":"box","text":"Institutional Shares","page_number":222,"box":{"x":117,"y":400,"width":160,"height":9}},{"id":"3693ab8c-86c2-4c25-9adb-9fb21156598c","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are","page_number":222,"box":{"x":117,"y":424,"width":720,"height":12}},{"id":"ee8e2afd-abf3-4094-b26e-40f6c631efa9","block_type":"box","text":"eligible to purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares","page_number":222,"box":{"x":116,"y":439,"width":737,"height":12}},{"id":"6d175efd-4f4d-4c89-8e1b-513103c9b4cc","block_type":"box","text":"should purchase Institutional Shares because they are not subject to any sales charge and have lower","page_number":222,"box":{"x":116,"y":455,"width":765,"height":12}},{"id":"03622bdb-50ae-4e29-9cfc-5c3a3dc37984","block_type":"box","text":"ongoing expenses than Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A","page_number":222,"box":{"x":116,"y":470,"width":752,"height":12}},{"id":"384dfd82-755c-48d2-9cbf-34dc3a3b4189","block_type":"box","text":"Fund may in its discretion waive or modify any minimum investment amount, may reject any order for","page_number":222,"box":{"x":117,"y":486,"width":755,"height":12}},{"id":"b4457c6f-5f2b-4fcc-8d35-27d21b56f5bb","block_type":"box","text":"any class of shares and may suspend and resume the sale of shares of any Fund at any time.","page_number":222,"box":{"x":116,"y":501,"width":703,"height":12}},{"id":"407c56f9-c08b-41a9-95b4-ca9361e570dc","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":222,"box":{"x":116,"y":534,"width":269,"height":12}},{"id":"a6385453-8102-4fba-a007-4dc4213444c3","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers","page_number":222,"box":{"x":387,"y":534,"width":499,"height":12}},{"id":"9065a291-29f8-468d-99c9-e7235469d0b1","block_type":"box","text":"of broker-dealers and agents that have established a servicing relationship with the Fund on behalf of","page_number":222,"box":{"x":116,"y":549,"width":757,"height":12}},{"id":"a33f8063-bd00-4d76-bb96-f99a3033f7f3","block_type":"box","text":"their customers. These broker-dealers and agents may impose additional or different conditions on the","page_number":222,"box":{"x":116,"y":565,"width":766,"height":12}},{"id":"190423e4-bafb-4447-b967-1ed284ba36b2","block_type":"box","text":"purchase or redemption of Fund shares by their customers and may charge their customers","page_number":222,"box":{"x":117,"y":580,"width":686,"height":12}},{"id":"cac45416-bcb2-432e-b248-480d38b3336f","block_type":"box","text":"transaction, account or other fees on the purchase and redemption of Fund shares. Each broker-dealer","page_number":222,"box":{"x":116,"y":596,"width":771,"height":12}},{"id":"debff578-c271-44f8-a9cc-05de47abb09f","block_type":"box","text":"or agent is responsible for transmitting to its customers a schedule of any such fees and information","page_number":222,"box":{"x":116,"y":611,"width":747,"height":12}},{"id":"dba37c30-d845-43f7-a654-fce796f5efca","block_type":"box","text":"regarding any additional or different conditions regarding purchases and redemptions. Shareholders","page_number":222,"box":{"x":117,"y":627,"width":746,"height":12}},{"id":"2cfc8287-c441-4355-b02c-0e23710cb09c","block_type":"box","text":"who are customers of such broker-dealers or agents should consult them for information regarding","page_number":222,"box":{"x":116,"y":642,"width":736,"height":12}},{"id":"1a94b2df-d838-4e5e-a670-1faa5c024827","block_type":"box","text":"these fees and conditions.","page_number":222,"box":{"x":116,"y":658,"width":200,"height":9}},{"id":"07183da8-24a0-4931-90f8-41dc1aa9989f","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately","page_number":222,"box":{"x":117,"y":690,"width":745,"height":12}},{"id":"7de6fc80-cd8b-42f4-9b1f-d1cfc7183a3e","block_type":"box","text":"available by 4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may","page_number":222,"box":{"x":116,"y":705,"width":765,"height":13}},{"id":"4b2cab45-2557-4308-a54e-6dd173ef9a0e","block_type":"box","text":"also, in the discretion of certain Funds, be made in the form of securities that are permissible","page_number":222,"box":{"x":116,"y":721,"width":688,"height":12}},{"id":"75f32a9f-67ae-4c0d-945a-d16f699848c6","block_type":"box","text":"investments for such Funds. If payment for a purchase order is not received by the prescribed time, an","page_number":222,"box":{"x":117,"y":736,"width":760,"height":13}},{"id":"1f2df1bf-2253-48da-b45e-59ea846327c7","block_type":"box","text":"investor may be liable for any resulting losses or expenses incurred by the Fund.","page_number":222,"box":{"x":117,"y":752,"width":597,"height":12}},{"id":"8f754705-5010-4b12-a58a-364f55cbfb94","block_type":"box","text":"Certain of the Funds offer Institutional Shares","page_number":222,"box":{"x":117,"y":784,"width":345,"height":10}},{"id":"2af05ed7-97ef-4b10-a65c-e0e87ffd761b","block_type":"box","text":"as described in each such Fund’s Prospectus. 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trust","page_number":223,"box":{"x":521,"y":350,"width":355,"height":12}},{"id":"c470ae84-b514-449c-b1bc-a147a90cec00","block_type":"box","text":"department clients of Bank of Amer","page_number":223,"box":{"x":116,"y":366,"width":269,"height":12}},{"id":"40360c41-e8d2-4a7d-b48e-31ab7c833738","block_type":"box","text":"ica, N.A. and its affiliates for whom they (i) act in a fiduciary","page_number":223,"box":{"x":386,"y":366,"width":455,"height":12}},{"id":"d9945e9b-adaf-4a97-82d1-787721d4a8eb","block_type":"box","text":"capacity (excluding participant directed employee","page_number":223,"box":{"x":116,"y":382,"width":380,"height":12}},{"id":"9b5c2632-abfa-4a05-a645-fb3bdb77e850","block_type":"box","text":"benefit plans), (ii) otherwise have investment","page_number":223,"box":{"x":497,"y":382,"width":345,"height":12}},{"id":"be6cbf9e-443a-4068-9733-ecef01ac409f","block_type":"box","text":"discretion, or (iii) act as custodian for at least","page_number":223,"box":{"x":116,"y":397,"width":346,"height":12}},{"id":"16c28126-948e-4b3d-8cbe-f61dd730f525","block_type":"box","text":"$2 million in assets; and holders of certain BofA Corp.","page_number":223,"box":{"x":463,"y":396,"width":414,"height":13}},{"id":"a039736a-3862-4d68-a1da-4bec65b623e5","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest","page_number":223,"box":{"x":116,"y":413,"width":401,"height":12}},{"id":"1875c29b-4d54-4190-9414-cd7780f62ca4","block_type":"box","text":"dividends received from such UITs in shares of","page_number":223,"box":{"x":518,"y":413,"width":367,"height":9}},{"id":"c69f8e9b-29c0-4233-ad32-4c0ce5f731f3","block_type":"box","text":"a Fund.","page_number":223,"box":{"x":116,"y":428,"width":63,"height":10}},{"id":"d50105d3-6f71-4646-a767-6037c21a5a52","block_type":"box","text":"Purchase Privileges of Certain Persons.","page_number":223,"box":{"x":116,"y":457,"width":295,"height":12}},{"id":"8b40e2b6-2014-4775-ba41-1253ac665d8d","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc.,","page_number":223,"box":{"x":413,"y":457,"width":439,"height":12}},{"id":"0e5a67fb-bb14-47e3-a7cd-ced4dd5fbfef","block_type":"box","text":"BlackRock Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or","page_number":223,"box":{"x":117,"y":472,"width":733,"height":12}},{"id":"cf2b76dd-00f3-489d-902a-59a1239786c4","block_type":"box","text":"other benefit plan for such persons may purchase Institutional Shares at lower investment minimums","page_number":223,"box":{"x":116,"y":488,"width":753,"height":12}},{"id":"cfcbdf25-41c9-437e-937c-ee408c72980d","block_type":"box","text":"than stated in each Fund’s Prospectus. A Fund realizes economies of scale and reduction of sales","page_number":223,"box":{"x":116,"y":503,"width":735,"height":12}},{"id":"f542bc93-985f-4dfe-992d-adb4265b8af3","block_type":"box","text":"related expenses by virtue of the familiarity of these persons with the Fund. Employees, directors, and","page_number":223,"box":{"x":117,"y":519,"width":761,"height":12}},{"id":"3fde9bb3-b45a-4721-ae39-d3ddc44ca2f1","block_type":"box","text":"board members of other funds wishing to purchase shares of a Fund must satisfy the Fund’s suitability","page_number":223,"box":{"x":117,"y":534,"width":764,"height":12}},{"id":"dfad9836-19c9-4e12-938b-9ed8b7e2d6fa","block_type":"box","text":"standards.","page_number":223,"box":{"x":116,"y":550,"width":83,"height":9}},{"id":"1449cea3-0d38-4062-afe8-b7792b81642d","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":223,"box":{"x":117,"y":579,"width":420,"height":12}},{"id":"30522548-4f89-4497-8f97-7c2813ccc1ac","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares.","page_number":223,"box":{"x":117,"y":601,"width":717,"height":12}},{"id":"1aff74c7-302a-48d8-a9d1-66fd2aab90fb","block_type":"box","text":"Investor A1 Shares are offered only (i) for purchase by certain employer-sponsored retirement plans","page_number":223,"box":{"x":117,"y":616,"width":748,"height":12}},{"id":"7e44d172-13f9-4b9a-a97a-4aade974b4fe","block_type":"box","text":"and fee-based programs that have been previously approved by certain Funds, and (ii) to certain","page_number":223,"box":{"x":116,"y":632,"width":723,"height":12}},{"id":"0401b79a-c4e3-4372-91e9-1f0b30a7e34d","block_type":"box","text":"investors who currently hold Investor A1 Shares for dividend and capital gain reinvestment only. The","page_number":223,"box":{"x":117,"y":647,"width":749,"height":12}},{"id":"3ce75467-6e91-45d9-a9a2-ad1005f61238","block_type":"box","text":"Investor A1 initial sales charge does not apply to the transactions described in (i) and (ii). For ease of","page_number":223,"box":{"x":117,"y":663,"width":750,"height":12}},{"id":"834c36c7-33fb-47e0-94fa-45e518a8d5fd","block_type":"box","text":"reference, Investor A, Investor A1 and Investor P (discussed below) Shares are sometimes referred to","page_number":223,"box":{"x":117,"y":678,"width":757,"height":12}},{"id":"390da5dc-6c5f-4fad-99de-71bbd52c2362","block_type":"box","text":"herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and BlackRock","page_number":223,"box":{"x":117,"y":694,"width":739,"height":12}},{"id":"c493fbfc-74ce-40e6-a727-c34cb0239dc3","block_type":"box","text":"Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":223,"box":{"x":116,"y":709,"width":677,"height":12}},{"id":"01492aee-cf6d-4682-85bf-c6a783d088c3","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge","page_number":223,"box":{"x":117,"y":738,"width":715,"height":12}},{"id":"729371bb-0929-4d9e-bd03-8e67b167e597","block_type":"box","text":"alternative particularly attractive because similar sales charge reductions are not available with respect","page_number":223,"box":{"x":116,"y":754,"width":763,"height":12}},{"id":"22b147b0-530d-4c9b-9c58-31cfb2a7b545","block_type":"box","text":"to the deferred sales charges imposed in connection with investments in Investor C Shares","page_number":223,"box":{"x":116,"y":769,"width":676,"height":12}},{"id":"dc520ab1-54a3-44d7-881b-1a0723d8bd90","block_type":"box","text":"(sometimes referred to herein as “CDSC shares”). Investors who do not qualify for reduced initial sales","page_number":223,"box":{"x":117,"y":784,"width":761,"height":13}},{"id":"87b50365-6739-48d3-8d62-05d733573e4b","block_type":"box","text":"charges and who expect to maintain their investment for an extended period of time also may elect to","page_number":223,"box":{"x":116,"y":800,"width":752,"height":12}},{"id":"6a2984f3-80f7-47c0-ad9e-d94758751a3d","block_type":"box","text":"purchase Investor A Shares, because over time the accumulated ongoing service and distribution fees","page_number":223,"box":{"x":117,"y":815,"width":759,"height":13}},{"id":"e0eba329-da17-460d-b026-2940a8f954b4","block_type":"box","text":"on CDSC shares may exceed the front-end load shares’ initial sales charge and service fee. Although","page_number":223,"box":{"x":116,"y":831,"width":759,"height":12}},{"id":"df02bcce-7c0b-4aef-922a-b027033d7c91","block_type":"box","text":"some investors who previously purchased Institutional Shares may no longer be eligible to purchase","page_number":223,"box":{"x":116,"y":846,"width":749,"height":13}},{"id":"70af2a8a-e5b9-493e-b215-469a3263618e","block_type":"box","text":"Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":223,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"8ee4a6ac-0f56-457a-8c06-24d1c6f2dc3d","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may","page_number":223,"box":{"x":117,"y":877,"width":768,"height":13}},{"id":"d3ea28f6-61ed-40fb-be39-264f6250f7d4","block_type":"box","text":"II-129","page_number":223,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"0f7a96da-dede-4777-af94-12fbdffe8a4e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":223,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3190c099-edbd-4b4c-8e18-1a9b5ec86f2a","block_type":"box","text":"qualify the investor for a reduced initial sales charge on new initial sales charge purchases. In addition,","page_number":224,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"000f7e74-01d4-455a-84e6-3099bcd2e594","block_type":"box","text":"the ongoing CDSC shares service and distribution fees will cause CDSC shares to have higher","page_number":224,"box":{"x":116,"y":102,"width":709,"height":13}},{"id":"09f9d0be-095d-475e-9534-7772b71105b9","block_type":"box","text":"expense ratios, pay lower dividends and have lower total returns than the initial sales charge shares.","page_number":224,"box":{"x":116,"y":118,"width":752,"height":12}},{"id":"52a43a38-0590-418f-8b49-9eab1561e985","block_type":"box","text":"The ongoing front-end load shares’ service fees will cause Investor A, Investor A1, Investor P and","page_number":224,"box":{"x":116,"y":134,"width":731,"height":12}},{"id":"942167a0-8d60-4dae-84be-0b99caa0fa54","block_type":"box","text":"Service Shares to have a higher expense ratio, pay lower dividends and have a lower total return than","page_number":224,"box":{"x":116,"y":149,"width":762,"height":12}},{"id":"b872fdc1-c130-461b-be51-494a8c9c2d05","block_type":"box","text":"Institutional Shares.","page_number":224,"box":{"x":117,"y":165,"width":151,"height":9}},{"id":"d3c5a153-71f5-407b-9207-49d0ba9701d9","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":224,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"e7f6a632-531f-40e0-9ef4-435a769687c4","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares","page_number":224,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"6e1ed579-8f06-4f7d-b773-9d0dcc64b094","block_type":"box","text":"for the periods indicated.","page_number":224,"box":{"x":116,"y":227,"width":189,"height":11}},{"id":"057aa4fb-bc36-4d05-a887-ec7d1bb3d70d","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries","page_number":224,"box":{"x":116,"y":258,"width":759,"height":12}},{"id":"302583b9-4fd0-4353-aeaf-81b702ccd3cb","block_type":"box","text":"and retain the balance over such discounts. At times the Distributor may reallow the entire sales","page_number":224,"box":{"x":116,"y":273,"width":717,"height":12}},{"id":"6cbdec26-bc33-43c8-b5e2-59b8e89da621","block_type":"box","text":"charge to such dealers. Since securities dealers and other financial intermediaries selling front-end","page_number":224,"box":{"x":116,"y":289,"width":739,"height":12}},{"id":"2b5b8c4c-387a-4ec7-a8e2-826c377a607b","block_type":"box","text":"load shares of a Fund will receive a concession equal to most of the sales charge, they may be","page_number":224,"box":{"x":117,"y":304,"width":710,"height":12}},{"id":"63224e1c-e204-49d4-a4d6-951b064201b4","block_type":"box","text":"deemed to be underwriters under the Securities Act.","page_number":224,"box":{"x":116,"y":320,"width":393,"height":9}},{"id":"0429dc2a-9118-4d5b-b819-f6bd4947f775","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":224,"box":{"x":117,"y":351,"width":327,"height":12}},{"id":"e9156198-ef47-4fce-ba26-1ae0a3aa4355","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P","page_number":224,"box":{"x":117,"y":374,"width":715,"height":12}},{"id":"7206689e-4181-4781-8476-29d50208aae3","block_type":"box","text":"Shares are available for purchase only through registered representatives of an insurance company’s","page_number":224,"box":{"x":116,"y":389,"width":758,"height":12}},{"id":"29189e94-c7fd-44d0-b8de-af22de0eacb6","block_type":"box","text":"broker-dealer that has entered into an agreement with the Distributor to offer such shares and are","page_number":224,"box":{"x":117,"y":405,"width":729,"height":12}},{"id":"d3e56a8e-0163-4490-ae68-50c750774613","block_type":"box","text":"subject to an initial sales charge. The ongoing front-end load shares’ service fees will cause Investor P","page_number":224,"box":{"x":116,"y":420,"width":766,"height":12}},{"id":"a0cb5f58-918b-4d68-9827-7c0371fa74cd","block_type":"box","text":"Shares to have a higher expense ratio, pay lower dividends and have a lower total return than Investor","page_number":224,"box":{"x":116,"y":436,"width":766,"height":12}},{"id":"5cc10a43-9a3a-4f9c-8c4d-17e89d7b7615","block_type":"box","text":"A Shares of the same Fund.","page_number":224,"box":{"x":116,"y":451,"width":214,"height":10}},{"id":"a98d5845-b561-4f70-bb18-edb0aa1a91cb","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":224,"box":{"x":116,"y":482,"width":770,"height":12}},{"id":"f6fcd31d-6191-4ece-9086-a295e33fde34","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods","page_number":224,"box":{"x":117,"y":498,"width":757,"height":12}},{"id":"d1485116-3cdf-479d-9c9d-4a6616bdc9c6","block_type":"box","text":"indicated.","page_number":224,"box":{"x":117,"y":514,"width":75,"height":9}},{"id":"1f0919d4-af8c-49c3-9d7b-f6e371bb93ac","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries","page_number":224,"box":{"x":116,"y":544,"width":759,"height":12}},{"id":"a6250a1a-357a-41f8-afae-737b67944979","block_type":"box","text":"and retain the balance over such discounts. At times the Distributor may reallow the entire sales","page_number":224,"box":{"x":116,"y":560,"width":717,"height":12}},{"id":"e7051672-1e2b-4da0-a892-9c02411059b7","block_type":"box","text":"charge to such dealers. Since securities dealers and other financial intermediaries selling front-end","page_number":224,"box":{"x":116,"y":575,"width":739,"height":12}},{"id":"839a6125-a46b-499a-b0de-51c9aee881e2","block_type":"box","text":"load shares of a Fund will receive a concession equal to most of the sales charge, they may be","page_number":224,"box":{"x":117,"y":591,"width":710,"height":12}},{"id":"16aa95e8-ceff-4963-bb41-8cfc4a7d7b15","block_type":"box","text":"deemed to be underwriters under the Securities Act.","page_number":224,"box":{"x":116,"y":606,"width":393,"height":10}},{"id":"fcade52d-8d2d-4c6d-905f-16f622617367","block_type":"box","text":"Reduced Initial Sales Charges","page_number":224,"box":{"x":117,"y":637,"width":244,"height":12}},{"id":"8c0b790c-bba8-456d-ad55-84e495deb5dd","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","page_number":224,"box":{"x":117,"y":661,"width":737,"height":12}},{"id":"244a8ea6-f3fc-4afc-8618-0d2e460299fa","block_type":"box","text":"investors and/or the reduced sales efforts necessary to obtain their investments. Financial","page_number":224,"box":{"x":117,"y":676,"width":666,"height":12}},{"id":"3d16daea-c3ed-4954-b676-7b2b7ac32bb4","block_type":"box","text":"intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":224,"box":{"x":117,"y":692,"width":730,"height":12}},{"id":"dd9a61ea-2e8d-459b-aaea-27cb8bc94dd4","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares","page_number":224,"box":{"x":116,"y":707,"width":754,"height":12}},{"id":"92ce80ed-ca41-492f-959d-5049b80d43b9","block_type":"box","text":"to another class of shares of the same Fund provided that the exchanged shares are not subject to a","page_number":224,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"f565f3f5-c9a4-4344-af40-255ac58524da","block_type":"box","text":"contingent deferred sales charge and that shareholders meet the eligibility requirements of the new","page_number":224,"box":{"x":116,"y":738,"width":736,"height":12}},{"id":"515f1c47-d897-4b86-9347-941c98da92ce","block_type":"box","text":"share class. Certain sales load reductions and waivers may be available to customers of certain","page_number":224,"box":{"x":116,"y":754,"width":711,"height":12}},{"id":"ce46c0a7-bd97-408f-a473-eb58e9880b8a","block_type":"box","text":"financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in","page_number":224,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"6a2fc3be-f442-4bbf-975c-85145ac888d6","block_type":"box","text":"the Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":224,"box":{"x":116,"y":785,"width":656,"height":12}},{"id":"fb5e03a5-2185-412c-aca7-5f1512885571","block_type":"box","text":"Reinvested Dividends.","page_number":224,"box":{"x":116,"y":816,"width":165,"height":9}},{"id":"89892c5a-5dbc-4493-b6bd-76464ac2a4a4","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":224,"box":{"x":289,"y":816,"width":583,"height":12}},{"id":"40187d59-36c2-4868-afb7-c87317126aa7","block_type":"box","text":"reinvestment of dividends.","page_number":224,"box":{"x":117,"y":831,"width":199,"height":10}},{"id":"4ad520bd-773b-49fd-a15b-485f53502612","block_type":"box","text":"Right of Accumulation.","page_number":224,"box":{"x":116,"y":862,"width":166,"height":12}},{"id":"4901fd5f-2719-4f74-bc07-493e85c9c87b","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may","page_number":224,"box":{"x":284,"y":862,"width":585,"height":12}},{"id":"01075597-2bc3-4424-8d6f-281f3ae6e89a","block_type":"box","text":"be combined with the amount of the current purchase in determining whether an investor qualifies for a","page_number":224,"box":{"x":117,"y":878,"width":768,"height":12}},{"id":"536617fe-c560-4d05-a1b9-8257e80778fd","block_type":"box","text":"II-130","page_number":224,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"181a3651-4f99-4cff-9933-5cae42727ff7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":224,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a941959c-a527-4237-b299-7fc70a94c0f3","block_type":"box","text":"breakpoint and a reduced front-end sales charge: (i) the current value of an investor’s existing Investor","page_number":225,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"985cc0fe-46b2-4585-bdd5-6b32f52aeeb3","block_type":"box","text":"A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares in most BlackRock","page_number":225,"box":{"x":116,"y":102,"width":741,"height":12}},{"id":"186a2d9e-3d06-4228-a2fd-2794e9b001ff","block_type":"box","text":"Funds, (ii) the current value of an investor’s existing shares of certain unlisted closed-end management","page_number":225,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"c043cc63-ae94-43b6-85df-37430306bb5b","block_type":"box","text":"investment companies sponsored and advised by BlackRock or its affiliates (“Eligible Unlisted","page_number":225,"box":{"x":117,"y":134,"width":699,"height":12}},{"id":"37640c2f-a69b-4783-9e9e-db8a83959118","block_type":"box","text":"BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock CollegeAdvantage 529","page_number":225,"box":{"x":117,"y":149,"width":717,"height":12}},{"id":"4a73a6e5-9082-400c-8da3-758905873368","block_type":"box","text":"Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":225,"box":{"x":117,"y":165,"width":673,"height":12}},{"id":"10bdc332-dcb1-429f-9374-f52ae7cba7ba","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining","page_number":225,"box":{"x":117,"y":180,"width":741,"height":12}},{"id":"2820aa38-7a91-40de-ba79-8e5b54b48d2a","block_type":"box","text":"whether an investor qualifies for a breakpoint and a reduced front-end sales charge, although","page_number":225,"box":{"x":116,"y":196,"width":698,"height":12}},{"id":"a9a3836e-ff3b-470a-a55f-936f34271229","block_type":"box","text":"customers of the same financial intermediary will be treated similarly. In order to use this right, the","page_number":225,"box":{"x":116,"y":211,"width":732,"height":12}},{"id":"bf8e7efe-7491-4cda-bdce-34c191295e94","block_type":"box","text":"investor must alert BlackRock to the existence of any previously purchased shares. Certain funds","page_number":225,"box":{"x":117,"y":227,"width":727,"height":12}},{"id":"7d20fc30-7065-473f-a136-823aaea80d5a","block_type":"box","text":"employ a “passive” management approach and attempt to match the performance of a target index as","page_number":225,"box":{"x":116,"y":242,"width":762,"height":12}},{"id":"d3c7987b-2da1-4bff-8b2d-327f4524d596","block_type":"box","text":"closely as possible before the deduction of Fund expenses (“Index Funds”). Although Investor A","page_number":225,"box":{"x":116,"y":258,"width":717,"height":12}},{"id":"ea89974c-908f-40b8-bc4a-81cb22e8ad5a","block_type":"box","text":"Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":225,"box":{"x":116,"y":273,"width":732,"height":12}},{"id":"fb126d53-894b-4ca8-874a-118b26c302ec","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and","page_number":225,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"ff35268a-7e6e-41be-93b8-8bb3f56a4247","block_type":"box","text":"Premier Shares in the Index Funds and BlackRock Short Obligations Fund may be combined with the","page_number":225,"box":{"x":117,"y":304,"width":757,"height":12}},{"id":"a463a645-6b10-4ab3-8032-6152a2bb812d","block_type":"box","text":"amount of an investor’s current purchase in determining whether an investor qualifies for a breakpoint","page_number":225,"box":{"x":116,"y":320,"width":760,"height":12}},{"id":"fcaf4217-ec46-4ecc-8082-c230291924ff","block_type":"box","text":"and a reduced front-end sales charge.","page_number":225,"box":{"x":116,"y":335,"width":289,"height":12}},{"id":"050fba5b-e2d3-4f2e-98f1-550f3ea8673a","block_type":"box","text":"Letter of Intent.","page_number":225,"box":{"x":116,"y":361,"width":111,"height":9}},{"id":"be17ecb3-baaa-4110-b4b9-a3cae69e264e","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a","page_number":225,"box":{"x":229,"y":361,"width":649,"height":12}},{"id":"e68460de-5667-4e1e-856d-5493119ff9fd","block_type":"box","text":"“Letter of Intent” stating the investor’s intention to make one or more of the following investments within","page_number":225,"box":{"x":116,"y":376,"width":770,"height":12}},{"id":"127c76f7-54dc-4d00-9757-36025c76cca7","block_type":"box","text":"the next 13 months which would, if bought all at once, qualify the investor for a reduced sales charge:","page_number":225,"box":{"x":116,"y":392,"width":758,"height":12}},{"id":"11a45e07-847a-4ce0-ab87-5b7cf3352385","block_type":"box","text":"(i) buy a specified amount of Investor A, Investor C, Investor P, Institutional, Class K and/or Premier","page_number":225,"box":{"x":117,"y":407,"width":745,"height":12}},{"id":"8b91f513-dd4f-4a97-b1a0-b92a84880c5e","block_type":"box","text":"Shares, (ii) make an investment in one or more Eligible Unlisted BlackRock Closed-End Funds and/or","page_number":225,"box":{"x":116,"y":423,"width":759,"height":12}},{"id":"506718e8-6bc2-4147-84b6-4a40c9e1dc59","block_type":"box","text":"(iii) make an investment through the BlackRock CollegeAdvantage 529 Program in one or more","page_number":225,"box":{"x":117,"y":438,"width":712,"height":12}},{"id":"df9bab60-fb20-45ac-be9b-11b968e9b560","block_type":"box","text":"BlackRock Funds. 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The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":225,"box":{"x":117,"y":485,"width":754,"height":12}},{"id":"77232788-c732-4b27-b5be-ecbef927bfa6","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds","page_number":225,"box":{"x":117,"y":500,"width":752,"height":12}},{"id":"20c7dbce-44ee-4306-88ed-32be549eb6f8","block_type":"box","text":"and the BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of","page_number":225,"box":{"x":116,"y":516,"width":722,"height":12}},{"id":"51b29e7c-4ffc-45dc-aa62-328f1de86ce8","block_type":"box","text":"commencement that are eligible under the Right of Accumulation may be counted towards the sales","page_number":225,"box":{"x":116,"y":531,"width":747,"height":12}},{"id":"982489df-7c02-439b-9079-9fcf787561de","block_type":"box","text":"charge reduction. The investor must notify the Fund of (i) any current holdings in the BlackRock Funds,","page_number":225,"box":{"x":116,"y":547,"width":770,"height":12}},{"id":"215595ab-0c25-4f1f-916c-d9258014f417","block_type":"box","text":"Eligible Unlisted BlackRock Closed-End Funds and/or the BlackRock CollegeAdvantage 529 Program","page_number":225,"box":{"x":117,"y":562,"width":759,"height":12}},{"id":"ab7ad936-2867-448c-986a-69b2dcdf5591","block_type":"box","text":"that should be counted towards the sales charge reduction and (ii) any subsequent purchases that","page_number":225,"box":{"x":116,"y":578,"width":735,"height":12}},{"id":"db423f3a-9377-477f-9414-edf0ff0f6399","block_type":"box","text":"should be counted towards the Letter of Intent. During the term of the Letter of Intent, the Fund will","page_number":225,"box":{"x":116,"y":593,"width":737,"height":12}},{"id":"2df3816f-0bf4-4cf3-8570-fc786a27230b","block_type":"box","text":"hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":225,"box":{"x":117,"y":609,"width":765,"height":12}},{"id":"a0bd9685-341d-4e96-bfee-e4b13e0bc8b2","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the","page_number":225,"box":{"x":116,"y":624,"width":728,"height":13}},{"id":"4014c983-3675-47f0-b128-4f216f3e80e5","block_type":"box","text":"Letter of Intent is not purchased. If the full amount indicated is not purchased within the 13-month","page_number":225,"box":{"x":117,"y":640,"width":726,"height":12}},{"id":"a3a0ce29-1f68-410d-a6d9-5520dfa5f57b","block_type":"box","text":"period, and the investor does not pay the higher sales load within 20 days, the Fund will redeem","page_number":225,"box":{"x":117,"y":656,"width":717,"height":12}},{"id":"5ca6705f-37f5-45a3-a68e-104f0c2b7fce","block_type":"box","text":"enough of the Investor A Shares and/or Investor P Shares, as applicable, held in escrow to pay the","page_number":225,"box":{"x":116,"y":671,"width":735,"height":12}},{"id":"70619200-e87e-4ab5-b3e0-26366cf5fdb5","block_type":"box","text":"difference.","page_number":225,"box":{"x":116,"y":686,"width":77,"height":10}},{"id":"be829d7f-0e38-4383-923d-83905a8a3a6f","block_type":"box","text":"Placement Fees.","page_number":225,"box":{"x":116,"y":712,"width":124,"height":10}},{"id":"adc4b444-5c31-4781-9e66-6934350685fe","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all","page_number":225,"box":{"x":117,"y":733,"width":759,"height":12}},{"id":"b64cbd71-c874-4308-995d-0b3905a32d1a","block_type":"box","text":"Funds, which may depend on the policies, procedures and trading platforms of your financial","page_number":225,"box":{"x":117,"y":748,"width":685,"height":12}},{"id":"ab5b4455-9278-436a-8c00-2d5eb207d796","block_type":"box","text":"intermediary.","page_number":225,"box":{"x":117,"y":764,"width":94,"height":12}},{"id":"892e1763-d993-41fb-a823-ce764854d9b6","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A","page_number":225,"box":{"x":117,"y":790,"width":712,"height":12}},{"id":"2c42ab12-badf-4e2f-9ed3-9cd3e6270347","block_type":"box","text":"Shares:","page_number":225,"box":{"x":116,"y":805,"width":56,"height":10}},{"id":"ea847106-c6cb-41bb-81fa-df759e22cbe7","block_type":"box","text":"$1 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following amounts:","page_number":227,"box":{"x":117,"y":831,"width":392,"height":12}},{"id":"c6ebd51e-3512-4235-9cf1-3335d31c35a9","block_type":"box","text":"$1,000,000 and above","page_number":227,"box":{"x":150,"y":861,"width":172,"height":12}},{"id":"44531975-9485-4dff-885f-26493ffa8d57","block_type":"box","text":"..................","page_number":227,"box":{"x":328,"y":870,"width":154,"height":2}},{"id":"a366edcd-7a1c-4a6c-99bf-f65f82dcc057","block_type":"box","text":"0.15%","page_number":227,"box":{"x":484,"y":862,"width":51,"height":10}},{"id":"5d997bd7-5088-435a-8366-cf910e2eac09","block_type":"box","text":"II-133","page_number":227,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"03e75f03-3486-4f6f-a664-70b110abdef6","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":227,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"10773fa6-e1b4-453c-aca8-af984ea6226b","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI 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of","page_number":228,"box":{"x":116,"y":164,"width":716,"height":13}},{"id":"43a98b71-8242-4d6a-8d37-aee00fdff885","block_type":"box","text":"BlackRock Funds V will result in a placement fee of up to 0.50% on the first $3 million and a placement","page_number":228,"box":{"x":117,"y":179,"width":768,"height":13}},{"id":"19ea0dab-fc92-43c5-a4d5-2972da988f78","block_type":"box","text":"fee of 0.25% on the final $1 million).","page_number":228,"box":{"x":116,"y":195,"width":272,"height":13}},{"id":"3e19ccce-f945-4446-9eeb-3c94e42a652b","block_type":"box","text":"Other.","page_number":228,"box":{"x":117,"y":227,"width":44,"height":9}},{"id":"b4523aae-9c4d-4378-989d-6146235d0459","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales","page_number":228,"box":{"x":163,"y":227,"width":685,"height":12}},{"id":"e1c6d632-466b-4e3b-9303-430f0647565b","block_type":"box","text":"charge: (a) certain employer-sponsored retirement plans (for purposes of this waiver, employer","page_number":228,"box":{"x":116,"y":242,"width":710,"height":12}},{"id":"f27aad8d-ba6a-4953-8371-48f5f0cc052e","block_type":"box","text":"sponsored retirement plans do not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of","page_number":228,"box":{"x":116,"y":258,"width":733,"height":12}},{"id":"7739a666-c279-4c37-a4ac-3d9aec38c1ba","block_type":"box","text":"current investments through certain employer-sponsored retirement plans provided the shares are","page_number":228,"box":{"x":116,"y":273,"width":733,"height":12}},{"id":"db55efb1-e2d9-48a5-b0dd-548a7ac178fa","block_type":"box","text":"transferred to Investor A or Investor P, as applicable, shares of the same or another BlackRock Fund","page_number":228,"box":{"x":116,"y":289,"width":754,"height":12}},{"id":"563b978d-39e5-403b-9951-7ec09e334379","block_type":"box","text":"as either a direct rollover, or subsequent to distribution, the rolled-over proceeds are contributed to a","page_number":228,"box":{"x":116,"y":304,"width":750,"height":12}},{"id":"0ed71db8-bc0d-4566-81aa-2b824b39b806","block_type":"box","text":"BlackRock IRA through an account directly with the Fund; or purchases by IRA programs that are","page_number":228,"box":{"x":117,"y":320,"width":728,"height":12}},{"id":"fdfd8db7-c865-41e7-8cd5-11017f184563","block_type":"box","text":"sponsored by financial intermediary firms provided the financial intermediary firm has entered into a","page_number":228,"box":{"x":116,"y":335,"width":744,"height":12}},{"id":"9f845ba9-2297-41c2-81b0-b7352a585095","block_type":"box","text":"Class A or Investor P NAV agreement, as applicable, with respect to such program with the Distributor;","page_number":228,"box":{"x":117,"y":351,"width":768,"height":12}},{"id":"c590ff99-c3b8-4d2a-b834-d7a8c3b30e3a","block_type":"box","text":"(c) insurance company separate accounts; (d) registered investment advisers, trust companies and","page_number":228,"box":{"x":117,"y":366,"width":740,"height":12}},{"id":"20002f5f-45c8-4545-a2ee-4dcd757fca3b","block_type":"box","text":"bank trust departments exercising discretionary investment authority with respect to amounts to be","page_number":228,"box":{"x":117,"y":382,"width":736,"height":12}},{"id":"037af8d6-b50c-441f-ae16-c01f671a5bce","block_type":"box","text":"invested in a Fund; (e) persons participating in a fee-based program (such as a wrap account) under","page_number":228,"box":{"x":117,"y":397,"width":750,"height":12}},{"id":"54b1dca1-3bbb-4600-9e06-ff3df3c1dce4","block_type":"box","text":"which they pay advisory fees to a broker-dealer or other financial institution; (f) financial intermediaries","page_number":228,"box":{"x":116,"y":413,"width":764,"height":12}},{"id":"e7e87764-fbf5-46c0-95e7-a28af82f4b68","block_type":"box","text":"who have entered into an agreement with the Distributor and have been approved by the Distributor to","page_number":228,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"387627aa-9c7d-4999-97d2-6f90b2f55735","block_type":"box","text":"offer Fund shares to self-directed investment brokerage accounts that may or may not charge a","page_number":228,"box":{"x":116,"y":444,"width":714,"height":12}},{"id":"89ccd56a-e17b-4550-a472-95c8a8340274","block_type":"box","text":"transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into","page_number":228,"box":{"x":116,"y":459,"width":736,"height":12}},{"id":"eaae523a-bc51-444a-bd0b-cb89fcf2f64b","block_type":"box","text":"Roth IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only,","page_number":228,"box":{"x":117,"y":475,"width":753,"height":12}},{"id":"7e88db0d-25fc-4978-a725-bbe4d04d072c","block_type":"box","text":"accounts opened directly with a Fund that do not have a financial intermediary associated with the","page_number":228,"box":{"x":116,"y":490,"width":733,"height":12}},{"id":"68f5b463-57f7-4cca-b3e7-9b8644a74ef5","block_type":"box","text":"account; and (i) persons involuntarily liquidated from a Fund, who within 60 days of liquidation buy new","page_number":228,"box":{"x":116,"y":506,"width":769,"height":12}},{"id":"3ab349e8-adb2-44e3-92e3-2b66e7bb57b9","block_type":"box","text":"shares of another BlackRock Fund (but only up to the amount that was liquidated). The following","page_number":228,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"d2ffd635-b7b1-47a4-a205-d0c36567597b","block_type":"box","text":"persons associated with the Funds, the Fund’s Manager, Sub-Advisers, Transfer Agent, Distributor,","page_number":228,"box":{"x":117,"y":537,"width":743,"height":12}},{"id":"476b3a8c-38b8-4090-b59d-4fd2a9808c31","block_type":"box","text":"fund accounting agents, Barclays PLC and their affiliates may buy Investor A or Investor P Shares of","page_number":228,"box":{"x":116,"y":552,"width":752,"height":12}},{"id":"9b83eba1-7dc2-443a-8dd6-790d40ff99db","block_type":"box","text":"each of the Funds without paying a sales charge to the extent permitted by these firms including:","page_number":228,"box":{"x":116,"y":568,"width":723,"height":12}},{"id":"b9d04aaf-5052-4a4b-85f7-fc88a515a9d2","block_type":"box","text":"(a) officers, directors and partners; (b) employees and retirees; (c) employees or registered","page_number":228,"box":{"x":117,"y":583,"width":680,"height":12}},{"id":"2c2041a3-a9d8-46e3-8885-a7bf0671090f","block_type":"box","text":"representatives of firms who have entered into selling agreements to distribute shares of BlackRock","page_number":228,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"c515d422-c9fb-435a-a8e3-edbcd3028155","block_type":"box","text":"advised funds; (d) immediate family members of such persons (“immediate family members” shall be","page_number":228,"box":{"x":116,"y":614,"width":753,"height":12}},{"id":"5ba328da-d3b9-49ab-8087-af9a4c2c7b22","block_type":"box","text":"defined as the investor, the investor’s spouse or domestic partner, children, parents and siblings); and","page_number":228,"box":{"x":116,"y":630,"width":761,"height":12}},{"id":"d3bff714-adec-4d96-b5eb-b2cec14069d5","block_type":"box","text":"(e) any trust, pension, profit-sharing or other benefit plan for any of the persons set forth in (a) through","page_number":228,"box":{"x":117,"y":645,"width":762,"height":12}},{"id":"e690c022-0d0f-45a8-9dc2-05625a90493f","block_type":"box","text":"(d). Investors who qualify for any of these exemptions from the sales charge should purchase","page_number":228,"box":{"x":117,"y":661,"width":692,"height":12}},{"id":"6d7130e5-b405-4536-8d70-1a5d937c0ad3","block_type":"box","text":"Investor A or Investor P Shares. 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The availability of Investor A or Investor P","page_number":228,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"3f751eaa-ef66-4789-95fd-ae0f60928ab9","block_type":"box","text":"Shares sales charge waivers may depend upon the policies, procedures and trading platforms of your","page_number":228,"box":{"x":116,"y":754,"width":756,"height":12}},{"id":"0134a51d-0995-423a-beae-aeec56e05760","block_type":"box","text":"financial intermediary; consult your financial adviser.","page_number":228,"box":{"x":116,"y":769,"width":387,"height":12}},{"id":"cf898d55-5863-4052-940c-ddee70bf54cb","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi","page_number":228,"box":{"x":117,"y":799,"width":736,"height":13}},{"id":"ec6a68eb-45b0-4aa6-affe-6874b7b679b7","block_type":"box","text":"Asset Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock","page_number":228,"box":{"x":116,"y":816,"width":720,"height":12}},{"id":"0e149d7e-0212-48c2-81b7-fb625017cb75","block_type":"box","text":"Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond","page_number":228,"box":{"x":117,"y":831,"width":755,"height":11}},{"id":"04a74dd3-3380-4559-9129-d63fda696b4c","block_type":"box","text":"Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of BlackRock","page_number":228,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"13f3a319-9f72-4594-8edf-45397b7c035e","block_type":"box","text":"Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":228,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"168ea023-9112-4f2f-ab28-e5f35aa26e5e","block_type":"box","text":"Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust,","page_number":228,"box":{"x":117,"y":878,"width":693,"height":12}},{"id":"faaff088-5431-4b0f-9e9c-0bcbb225d738","block_type":"box","text":"II-134","page_number":228,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"0cc0684e-69a4-4fd7-b7fa-28a5becb9e68","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":228,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3a77a9ab-7706-4208-8763-20ad50d075a1","block_type":"box","text":"BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":229,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"3dec776b-af32-4329-93fd-028112337316","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and","page_number":229,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"db44f558-39dd-48e5-bdc8-fad96c98c8b0","block_type":"box","text":"BlackRock Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust,","page_number":229,"box":{"x":117,"y":118,"width":714,"height":12}},{"id":"9d69fe3f-21f3-4809-ad10-a81b8679bf39","block_type":"box","text":"BlackRock Event Driven Equity Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock","page_number":229,"box":{"x":117,"y":133,"width":770,"height":13}},{"id":"433a2ad8-1aa7-490b-a198-8ece5fc1c0b1","block_type":"box","text":"Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock Income Fund and","page_number":229,"box":{"x":117,"y":149,"width":757,"height":12}},{"id":"290d1c43-9389-4abc-8b10-fa06babc36c2","block_type":"box","text":"BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more in Investor A or","page_number":229,"box":{"x":117,"y":165,"width":742,"height":12}},{"id":"67ca2537-8b43-4634-8030-372fb268b56a","block_type":"box","text":"Investor P Shares, as applicable, you may not pay an initial sales charge. 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The Investor A Shares deferred sales charge is only charged upon","page_number":229,"box":{"x":117,"y":320,"width":722,"height":12}},{"id":"3a1fe818-5064-4f23-9234-1a5c7838d5e3","block_type":"box","text":"redemptions of Investor A Shares within 18 months after you originally acquired such Investor A","page_number":229,"box":{"x":117,"y":335,"width":716,"height":12}},{"id":"35242c2a-a371-450d-8639-3f1d9958f9d5","block_type":"box","text":"Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply","page_number":229,"box":{"x":116,"y":351,"width":708,"height":12}},{"id":"75cc9267-4a6b-4d90-a364-bc57a46c822f","block_type":"box","text":"depending on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There","page_number":229,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"bb793af1-e1ab-42f4-880b-b394c8e2857c","block_type":"box","text":"is no deferred sales charge charged on redemptions if you have owned your Investor A Shares for","page_number":229,"box":{"x":117,"y":382,"width":733,"height":12}},{"id":"50e20cf5-7963-4e45-8be5-cbd097196233","block_type":"box","text":"more than 18 months (or for a shorter holding period, as applicable) (as measured from your original","page_number":229,"box":{"x":117,"y":397,"width":749,"height":12}},{"id":"0fd69437-2780-454d-af25-4d729d08a52d","block_type":"box","text":"purchase of Investor A Shares that you exchanged into Investor A Shares of the Index Fund or","page_number":229,"box":{"x":117,"y":413,"width":707,"height":12}},{"id":"52f55d59-6010-4b04-be97-886612adec92","block_type":"box","text":"BlackRock Short Obligations Fund).","page_number":229,"box":{"x":117,"y":428,"width":270,"height":12}},{"id":"b6a8429c-724c-4407-a73c-a72620c982d7","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection","page_number":229,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"177cd55e-6d4e-4c6b-8b33-4f74255c8a57","block_type":"box","text":"with: (a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored","page_number":229,"box":{"x":116,"y":475,"width":752,"height":12}},{"id":"1619fb6b-9bb7-4825-a2c2-deb41114f0b2","block_type":"box","text":"retirement plans and rollovers of current investments in a Fund through such plans; (b) exchanges","page_number":229,"box":{"x":117,"y":490,"width":709,"height":12}},{"id":"c53fbd89-a5d4-4801-936e-545a50995117","block_type":"box","text":"described in “Exchange Privilege” below; (c) redemptions made in connection with minimum required","page_number":229,"box":{"x":116,"y":506,"width":730,"height":12}},{"id":"1addef15-a63c-43f9-a003-69a7bb6957d8","block_type":"box","text":"distributions from IRA and 403(b)(7) accounts due to the shareholder reaching the applicable age","page_number":229,"box":{"x":116,"y":521,"width":704,"height":12}},{"id":"b6d70839-ac99-4523-93d6-276c1fbccaf9","block_type":"box","text":"triggering such distributions; (d) redemptions made with respect to certain retirement plans sponsored by a","page_number":229,"box":{"x":116,"y":537,"width":770,"height":12}},{"id":"72d4b21c-0b28-403a-a9bd-7995ba370783","block_type":"box","text":"Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a shareholder’s death or, if later, the","page_number":229,"box":{"x":117,"y":552,"width":768,"height":12}},{"id":"8e531899-32cc-4906-a82c-d3ff76269bf7","block_type":"box","text":"receipt of a certified probate settlement (including in connection with the distribution of account assets to a","page_number":229,"box":{"x":117,"y":568,"width":765,"height":12}},{"id":"1c829c5c-a980-4304-a8b9-cdcfd22a066c","block_type":"box","text":"beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as defined in the Code)","page_number":229,"box":{"x":117,"y":583,"width":740,"height":12}},{"id":"1c83b5b1-3e60-43ca-bdf2-2e60cff9a173","block_type":"box","text":"subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of Investor A or","page_number":229,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"a97d21ca-e285-4740-8cb7-bfec953e9acd","block_type":"box","text":"Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":229,"box":{"x":117,"y":614,"width":687,"height":12}},{"id":"a950aa0a-e4bf-4e66-b7b0-30c63274ee31","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon","page_number":229,"box":{"x":116,"y":630,"width":738,"height":12}},{"id":"77f75e19-eb76-4ae7-985a-fa9c12bafdd7","block_type":"box","text":"Investment Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can","page_number":229,"box":{"x":117,"y":645,"width":734,"height":12}},{"id":"e40f8d6e-5b57-4877-888e-4a2ff802fe6e","block_type":"box","text":"demonstrate hardship, in the absolute discretion of a Fund.","page_number":229,"box":{"x":116,"y":661,"width":423,"height":12}},{"id":"eb55ecf2-55ab-4eac-ae82-7fa59019d14e","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a","page_number":229,"box":{"x":116,"y":692,"width":740,"height":12}},{"id":"f160bb5b-b40c-46f0-9386-1b0751562e86","block_type":"box","text":"placement fee, the Fund may, at its own discretion, waive the CDSC related to purchases of","page_number":229,"box":{"x":117,"y":707,"width":683,"height":12}},{"id":"9a2e0563-ec50-449e-bc86-49f823306fc4","block_type":"box","text":"$1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income","page_number":229,"box":{"x":116,"y":722,"width":745,"height":13}},{"id":"b87380fd-df0a-455a-84e8-4072bb4c94b3","block_type":"box","text":"Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative","page_number":229,"box":{"x":117,"y":738,"width":727,"height":12}},{"id":"2cf370e6-bdef-437f-bff8-72f914222b7e","block_type":"box","text":"Value Fund of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc.,","page_number":229,"box":{"x":116,"y":754,"width":719,"height":11}},{"id":"8d51ab91-c127-4dba-9ed7-8af5f53e5c33","block_type":"box","text":"BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of BlackRock Municipal","page_number":229,"box":{"x":117,"y":769,"width":740,"height":12}},{"id":"971bbb7f-8582-4765-9aeb-24ce5bcb2aef","block_type":"box","text":"Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":229,"box":{"x":117,"y":785,"width":709,"height":12}},{"id":"0bdba97f-26b3-4054-a88b-197e8dbae8a1","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock","page_number":229,"box":{"x":117,"y":800,"width":736,"height":12}},{"id":"d81d55b4-077e-4afb-a01b-6efb6fa284ab","block_type":"box","text":"California Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock","page_number":229,"box":{"x":117,"y":816,"width":732,"height":12}},{"id":"4c6ac0ba-a34f-4b3a-83cd-2768e5f9cb4e","block_type":"box","text":"New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":229,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"844fc343-2bac-4e43-93e6-087d1e269acf","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event","page_number":229,"box":{"x":117,"y":847,"width":762,"height":12}},{"id":"e8b7d857-e4f2-49e4-8d9a-e11acfc6b6ae","block_type":"box","text":"Driven Equity Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration","page_number":229,"box":{"x":117,"y":861,"width":742,"height":13}},{"id":"4bf6437f-811f-45cb-a149-56695d4e9a2f","block_type":"box","text":"Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock","page_number":229,"box":{"x":117,"y":878,"width":738,"height":12}},{"id":"bb9260da-aba7-4fff-bda5-3233b42d2db9","block_type":"box","text":"II-135","page_number":229,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"119dfd98-2ec9-438b-b1e1-e476a8073dc7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":229,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4464acde-4255-4874-aae5-84c188b00a68","block_type":"box","text":"Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or Investor P","page_number":230,"box":{"x":116,"y":87,"width":740,"height":12}},{"id":"9bda41d8-30eb-4b8c-b1fd-03b32e33626a","block_type":"box","text":"Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":230,"box":{"x":116,"y":102,"width":706,"height":13}},{"id":"81aefd58-8f94-4573-9853-4999b87b7277","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":230,"box":{"x":117,"y":118,"width":326,"height":12}},{"id":"37272e66-fe8d-4e72-8107-cf0f40712266","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons,","page_number":230,"box":{"x":117,"y":149,"width":746,"height":12}},{"id":"aa33e6b5-a4c9-4c00-a3e9-9f4678e38628","block_type":"box","text":"are required to transfer investment positions from a foreign registered investment company advised by","page_number":230,"box":{"x":116,"y":165,"width":765,"height":12}},{"id":"e3c5b4f9-bfd6-4555-8de5-90413bc92195","block_type":"box","text":"BlackRock or its affiliates to a U.S. registered BlackRock-advised fund.","page_number":230,"box":{"x":117,"y":180,"width":530,"height":12}},{"id":"b2ea710b-e5e9-40ea-9238-1d5a8be96b7e","block_type":"box","text":"Acquisition of Certain Investment Companies.","page_number":230,"box":{"x":115,"y":211,"width":340,"height":12}},{"id":"6e6741b2-82f8-4a54-a8fc-58f9610552b5","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV","page_number":230,"box":{"x":456,"y":211,"width":432,"height":12}},{"id":"f128d700-0f47-4335-beb4-1e1e67a55cab","block_type":"box","text":"in connection with the acquisition of the assets of, or merger or consolidation with, a personal holding","page_number":230,"box":{"x":117,"y":227,"width":755,"height":12}},{"id":"da682eec-4c24-4e48-8340-e532ee01e31c","block_type":"box","text":"company or a public or private investment company.","page_number":230,"box":{"x":116,"y":242,"width":394,"height":12}},{"id":"38696a3f-7513-4d08-955f-2e6e04581afc","block_type":"box","text":"Purchases Through Certain Financial Intermediaries.","page_number":230,"box":{"x":116,"y":273,"width":392,"height":12}},{"id":"38d11fff-d137-4252-aa46-742458ce2693","block_type":"box","text":"Reduced sales charges may be applicable for","page_number":230,"box":{"x":509,"y":273,"width":350,"height":12}},{"id":"1665986f-0142-4ec3-9fc2-ac1f0c0c1e92","block_type":"box","text":"purchases of Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers,","page_number":230,"box":{"x":117,"y":289,"width":764,"height":12}},{"id":"0b18427b-31d7-45e1-ba31-581d38e59239","block_type":"box","text":"selected securities dealers and other financial intermediaries that meet and adhere to standards","page_number":230,"box":{"x":116,"y":304,"width":717,"height":10}},{"id":"a9b8875a-a3e9-42ad-b61e-7746a73fe7f5","block_type":"box","text":"established by the Manager from time to time.","page_number":230,"box":{"x":116,"y":320,"width":346,"height":12}},{"id":"5c83221d-14ca-421f-9fd1-cecd01d3e695","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":230,"box":{"x":117,"y":351,"width":445,"height":12}},{"id":"ff7409de-6657-42f2-ab86-839c010dea4b","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are","page_number":230,"box":{"x":117,"y":374,"width":762,"height":12}},{"id":"4960b1be-c70e-4d05-849e-17e836ef5460","block_type":"box","text":"uncertain as to the length of time they intend to hold their assets in a Fund. If you select Investor C","page_number":230,"box":{"x":117,"y":389,"width":736,"height":12}},{"id":"bc8d3a45-32b5-42ca-bac2-814e0ff24a29","block_type":"box","text":"Shares, you do not pay an initial sales charge at the time of purchase. A Fund will not accept a","page_number":230,"box":{"x":116,"y":405,"width":708,"height":12}},{"id":"5e3938db-e8b3-422f-9287-23889be52b04","block_type":"box","text":"purchase order of $500,000 or more for Investor C Shares (may be lower on funds that have set a","page_number":230,"box":{"x":117,"y":420,"width":732,"height":12}},{"id":"f54d25b4-fcc9-44bd-88af-7141f82a3fd3","block_type":"box","text":"lower breakpoint for NAV). Your financial intermediary may set a lower maximum for Investor C","page_number":230,"box":{"x":117,"y":436,"width":711,"height":12}},{"id":"d11c031b-e25b-434f-8af3-03160ee83ba2","block_type":"box","text":"Shares.","page_number":230,"box":{"x":116,"y":451,"width":62,"height":10}},{"id":"8a886267-0026-4767-bb86-23fe3aa75ce3","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a","page_number":230,"box":{"x":117,"y":482,"width":762,"height":12}},{"id":"bb539cae-3da7-4c59-a6d1-b2374faa9e36","block_type":"box","text":"financial intermediary associated with the account.","page_number":230,"box":{"x":116,"y":498,"width":379,"height":12}},{"id":"8b7c9d2c-490d-4901-be4e-d3605bada399","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":230,"box":{"x":117,"y":529,"width":700,"height":12}},{"id":"7273bc07-746f-487d-9691-55a6b078b556","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for","page_number":230,"box":{"x":116,"y":560,"width":771,"height":12}},{"id":"2d137ec1-3077-4fdd-9378-d6f892e5b8d3","block_type":"box","text":"the reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution","page_number":230,"box":{"x":116,"y":575,"width":767,"height":12}},{"id":"8acbc9d9-e108-4fba-afbc-5743f36ef443","block_type":"box","text":"fees; however, these fees potentially may be offset to the extent any return is realized on the additional","page_number":230,"box":{"x":116,"y":591,"width":769,"height":12}},{"id":"5030fe6a-cdcf-4847-9e05-b1cef1b5aa76","block_type":"box","text":"funds initially invested in CDSC shares.","page_number":230,"box":{"x":116,"y":606,"width":298,"height":12}},{"id":"07bd1e99-2a81-40c8-a4b7-694268a0db38","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares","page_number":230,"box":{"x":117,"y":637,"width":758,"height":12}},{"id":"5ddcba6d-7648-4e59-9d72-fc609199e3be","block_type":"box","text":"at the time of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid","page_number":230,"box":{"x":116,"y":653,"width":757,"height":12}},{"id":"249eb558-0175-44ea-a1c0-dfdf68d71890","block_type":"box","text":"to the Distributor and are used by the Distributor to defray the expenses of securities dealers or other","page_number":230,"box":{"x":116,"y":668,"width":751,"height":12}},{"id":"7cb0b99d-5cc8-48ec-9281-c16a5f81b0e0","block_type":"box","text":"financial intermediaries related to providing distribution-related services to each Fund in connection","page_number":230,"box":{"x":116,"y":684,"width":735,"height":12}},{"id":"d7199c4f-5860-4455-9931-e5fa143f743c","block_type":"box","text":"with the sale of the CDSC shares. The combination of the CDSC and the ongoing distribution fee","page_number":230,"box":{"x":116,"y":699,"width":719,"height":13}},{"id":"8e04bdf8-b440-4c9e-8572-d725ba755d27","block_type":"box","text":"facilitates the ability of each Fund to sell the CDSC shares without a sales charge being deducted at","page_number":230,"box":{"x":116,"y":715,"width":743,"height":12}},{"id":"46bb6651-7bf6-4677-beec-a230a4377ae0","block_type":"box","text":"the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below. Imposition of the","page_number":230,"box":{"x":116,"y":730,"width":742,"height":13}},{"id":"8cab5511-519a-4832-b784-01da0d0e46c5","block_type":"box","text":"CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":230,"box":{"x":117,"y":746,"width":737,"height":12}},{"id":"8ce74234-a764-4e0f-936d-e29b43448f08","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":230,"box":{"x":116,"y":761,"width":642,"height":13}},{"id":"19aaa275-8e0a-499c-953f-093bd3975a13","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold","page_number":230,"box":{"x":117,"y":792,"width":750,"height":13}},{"id":"d386f113-7734-4907-8190-a2d09c9c0af9","block_type":"box","text":"by them plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a","page_number":230,"box":{"x":117,"y":808,"width":751,"height":12}},{"id":"2822d4ab-2192-49e8-a072-b632bbfcccff","block_type":"box","text":"commission in connection with sales of Investor C Shares to certain employer-sponsored retirement","page_number":230,"box":{"x":116,"y":823,"width":741,"height":13}},{"id":"edd3da4d-45b1-4e24-8f08-5bc3e30fab18","block_type":"box","text":"plans sponsored by the Fund, BlackRock or its affiliates, but may receive fees under the Distribution","page_number":230,"box":{"x":117,"y":839,"width":746,"height":12}},{"id":"b1205c31-310d-4fc9-97e1-94457d25ad50","block_type":"box","text":"and Service Plan. These commissions and payments may be different than the reallowances,","page_number":230,"box":{"x":116,"y":854,"width":699,"height":13}},{"id":"0c730cf4-5dce-4814-a9c1-46cafd1736af","block_type":"box","text":"placement fees and commissions paid to dealers in connection with sales of Investor A, Investor A1","page_number":230,"box":{"x":117,"y":870,"width":744,"height":12}},{"id":"943f3aa5-8b24-4783-a12e-dc29c816d6dc","block_type":"box","text":"II-136","page_number":230,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"fb2ee526-9730-4672-a90e-017b8d5439fd","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":230,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3506157f-0fc9-4c69-b136-eb34ea899665","block_type":"box","text":"and Investor P Shares. These may depend upon the policies, procedures and trading platforms of your","page_number":231,"box":{"x":116,"y":87,"width":768,"height":12}},{"id":"b4ed4813-d356-4545-866b-95fd7e2785b8","block_type":"box","text":"financial intermediary; consult your financial adviser.","page_number":231,"box":{"x":116,"y":102,"width":393,"height":13}},{"id":"ef274b20-ebdd-4dab-b8c4-43e073535242","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective","page_number":231,"box":{"x":117,"y":131,"width":664,"height":12}},{"id":"ed128190-0dea-45dc-95f7-1fb2dcc50439","block_type":"box","text":"November 23, 2020, Investor C Shares held for approximately eight years will be converted into","page_number":231,"box":{"x":117,"y":146,"width":714,"height":12}},{"id":"b5d2db46-955d-412b-b702-06463140657c","block_type":"box","text":"Investor A Shares, as set forth in each Fund’s Prospectus. In addition, accounts that do not have a","page_number":231,"box":{"x":117,"y":162,"width":736,"height":12}},{"id":"ef107d19-a2ce-4c01-badd-d6302981826d","block_type":"box","text":"financial intermediary associated with them are not eligible to hold Investor C Shares, and any Investor","page_number":231,"box":{"x":116,"y":177,"width":768,"height":12}},{"id":"92c05f0f-9ca8-4b19-87ba-b9e2a1515ef3","block_type":"box","text":"C Shares held in such accounts will be automatically converted to Investor A Shares.","page_number":231,"box":{"x":117,"y":193,"width":635,"height":12}},{"id":"4c3ce1d2-a3b3-4ea0-83eb-bf73808a8c76","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":231,"box":{"x":117,"y":221,"width":404,"height":10}},{"id":"8d91a2c6-c073-4ff8-beaa-0fb834f23498","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor","page_number":231,"box":{"x":117,"y":243,"width":763,"height":12}},{"id":"f206db17-f612-452b-ae4a-4d928e419d0b","block_type":"box","text":"C Shares of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor","page_number":231,"box":{"x":117,"y":259,"width":736,"height":12}},{"id":"779b2c74-a82c-4d45-9062-f76bea30213f","block_type":"box","text":"C 8-Year Conversion”). Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the","page_number":231,"box":{"x":117,"y":274,"width":770,"height":12}},{"id":"dfeb33de-9035-42b4-a542-372e6c777d4f","block_type":"box","text":"“Successor Funds”) pursuant to reorganizations which occurred in September 2018. The holding","page_number":231,"box":{"x":116,"y":290,"width":722,"height":12}},{"id":"afe0fc69-1606-4454-ae08-0544f0f9b71d","block_type":"box","text":"period for Investor C Shares of Successor Funds includes the period such shares were held in the","page_number":231,"box":{"x":117,"y":305,"width":732,"height":12}},{"id":"8bfbeb18-9e11-4df7-8a31-b6d2ab8099ea","block_type":"box","text":"respective Predecessor Fund. It is the financial intermediary’s responsibility to ensure that the","page_number":231,"box":{"x":117,"y":321,"width":699,"height":12}},{"id":"a934b3ae-e850-435c-847e-4b4f3c4446d4","block_type":"box","text":"shareholder is credited with the proper holding period. As of the Effective Date, certain financial","page_number":231,"box":{"x":116,"y":336,"width":713,"height":12}},{"id":"948a5696-5a4d-4b00-b22e-b9ff24b56e78","block_type":"box","text":"intermediaries, including group retirement recordkeeping platforms, may not have been tracking such","page_number":231,"box":{"x":117,"y":352,"width":755,"height":12}},{"id":"739cb689-ab4c-4e63-9fc8-837e3742c542","block_type":"box","text":"holding periods and therefore may not be able to process such conversions. In such instances,","page_number":231,"box":{"x":117,"y":367,"width":708,"height":12}},{"id":"890cc59f-24d9-4b0e-8397-ada55359875f","block_type":"box","text":"Investor C Shares held as of the Effective Date will automatically convert to Investor A Shares","page_number":231,"box":{"x":117,"y":383,"width":702,"height":12}},{"id":"595eccc9-d7f0-4a23-9875-565c1f8d6dd7","block_type":"box","text":"approximately eight years after the Effective Date. If, as of November 23, 2028 (eight years after the","page_number":231,"box":{"x":116,"y":398,"width":749,"height":12}},{"id":"788a5b9b-5501-440f-b1d4-29e061607a75","block_type":"box","text":"Effective Date), a financial intermediary has not implemented systems or procedures to track holding","page_number":231,"box":{"x":117,"y":414,"width":751,"height":12}},{"id":"ba5e443f-fff4-46aa-9b74-a4da8f7590f7","block_type":"box","text":"periods commencing from the Effective Date, shareholders holding Investor C Shares through such","page_number":231,"box":{"x":117,"y":429,"width":742,"height":12}},{"id":"e08ec1cc-de32-4893-99b7-996bbfb7167e","block_type":"box","text":"financial intermediary will no longer be eligible to hold Investor C Shares and any such shares will","page_number":231,"box":{"x":116,"y":445,"width":729,"height":12}},{"id":"c2dc4a80-0c08-4a44-8791-1a36c2f2b8f4","block_type":"box","text":"convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":231,"box":{"x":116,"y":460,"width":597,"height":12}},{"id":"918203b2-738e-4882-a84d-3af87c4ba064","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to","page_number":231,"box":{"x":117,"y":489,"width":756,"height":12}},{"id":"a548390f-4579-44a3-adda-4971bbce5b73","block_type":"box","text":"hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically","page_number":231,"box":{"x":117,"y":504,"width":704,"height":12}},{"id":"d4689ec5-e22d-49b5-acfe-5cd7f6894c87","block_type":"box","text":"converted into Investor A Shares (the “Investor C Direct Accounts Conversion” and together with the","page_number":231,"box":{"x":116,"y":520,"width":749,"height":12}},{"id":"dfb3818c-d8e1-489e-81bf-06917f95a0da","block_type":"box","text":"Investor C 8-Year Conversion, the “Investor C Conversions”).","page_number":231,"box":{"x":117,"y":535,"width":459,"height":12}},{"id":"6ec8b2c7-cc8b-4b9b-8db0-df1e07ec1b68","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”)","page_number":231,"box":{"x":116,"y":563,"width":765,"height":13}},{"id":"b537b3dd-6183-48c0-ac37-87139d9bffe0","block_type":"box","text":"on the basis of the relative NAV of the shares of the two applicable classes on the Investor C","page_number":231,"box":{"x":116,"y":579,"width":694,"height":12}},{"id":"3e888e8c-a025-4cc3-9ac5-b9a82dbfe3a3","block_type":"box","text":"Conversion Date, without the imposition of any sales load, fee or other charge. The Investor C","page_number":231,"box":{"x":117,"y":594,"width":702,"height":13}},{"id":"98859af8-8bdf-4bc8-8119-cb00e2b15ad5","block_type":"box","text":"Conversions will not be deemed a purchase or sale of the shares for U.S. federal income tax purposes.","page_number":231,"box":{"x":117,"y":610,"width":770,"height":12}},{"id":"a3620f84-bfac-4edf-ae54-af62fa17d87c","block_type":"box","text":"Shares acquired through reinvestment of dividends on Investor C Shares will also convert","page_number":231,"box":{"x":116,"y":625,"width":670,"height":13}},{"id":"3e9653a7-52b9-4d8d-8cec-b5d6f937d0fa","block_type":"box","text":"automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C Conversion","page_number":231,"box":{"x":116,"y":641,"width":765,"height":12}},{"id":"cbe3919c-fd5c-4e64-b9dd-84c51c1143c8","block_type":"box","text":"Date for dividend reinvestment shares will be calculated taking into account the length of time the","page_number":231,"box":{"x":117,"y":656,"width":726,"height":13}},{"id":"37f59706-d23a-481c-bc67-190822ae6004","block_type":"box","text":"shares underlying the dividend reinvestment shares were outstanding.","page_number":231,"box":{"x":116,"y":672,"width":520,"height":12}},{"id":"3e6bd828-e2ac-46d6-a06b-650beff79868","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":231,"box":{"x":117,"y":700,"width":418,"height":12}},{"id":"93b0e137-c1c9-4cce-8f7e-bb5ff36d637f","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC","page_number":231,"box":{"x":117,"y":722,"width":741,"height":12}},{"id":"1f233b84-f735-46e0-96c7-c0c276255cdd","block_type":"box","text":"charged as a percentage of the dollar amount subject thereto. In determining whether an Investor C","page_number":231,"box":{"x":116,"y":738,"width":739,"height":12}},{"id":"7aecc649-de8b-4257-8d3d-795de58ef119","block_type":"box","text":"Shares CDSC is applicable to a redemption, the calculation will be determined in the manner that","page_number":231,"box":{"x":116,"y":753,"width":722,"height":12}},{"id":"bb672ffe-7f60-4ace-b4c4-5b649cc985ad","block_type":"box","text":"results in the lowest possible rate being charged. The charge will be assessed on an amount equal to","page_number":231,"box":{"x":117,"y":769,"width":751,"height":12}},{"id":"97caf575-ad90-4dfe-a80e-4b5c5be08947","block_type":"box","text":"the lesser of the proceeds of redemption or the cost of the shares being redeemed. Accordingly, no","page_number":231,"box":{"x":116,"y":784,"width":737,"height":12}},{"id":"bf64af11-1e5b-44b3-865e-86ce1f5d27cf","block_type":"box","text":"CDSC will be imposed on increases in NAV above the initial purchase price of Investor C Shares. In","page_number":231,"box":{"x":117,"y":800,"width":740,"height":12}},{"id":"c4bff60d-0dbf-4562-9e67-0ed7ca8d567e","block_type":"box","text":"addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of dividends.","page_number":231,"box":{"x":116,"y":815,"width":759,"height":12}},{"id":"124ab2dd-51c3-4e10-bc97-80ca6a5ce6b2","block_type":"box","text":"It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":231,"box":{"x":117,"y":831,"width":722,"height":12}},{"id":"4a0a1b58-e1fd-4086-afbf-05acda3a8c1e","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A","page_number":231,"box":{"x":117,"y":846,"width":745,"height":12}},{"id":"e1d294f6-a7c8-4b98-aa47-19ff96ef07fe","block_type":"box","text":"transfer of shares from a shareholder’s account to another account will be assumed to be made in the","page_number":231,"box":{"x":116,"y":862,"width":761,"height":9}},{"id":"14b183fe-1949-4346-ad9c-2732b12ec598","block_type":"box","text":"same order as a redemption.","page_number":231,"box":{"x":116,"y":877,"width":220,"height":12}},{"id":"905df4c9-2a52-4eee-ac57-c5725b314ca6","block_type":"box","text":"II-137","page_number":231,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"26ba2e51-471c-4a0d-a863-04f1c12334a3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":231,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9e935806-957b-41b0-9617-0c7d02088261","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":232,"box":{"x":116,"y":87,"width":770,"height":12}},{"id":"783c36f1-326a-43c7-8c0e-967cacd9b22b","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods","page_number":232,"box":{"x":117,"y":102,"width":726,"height":12}},{"id":"cf9f29c8-4c53-48a1-9723-3d11ea8799db","block_type":"box","text":"indicated.","page_number":232,"box":{"x":117,"y":118,"width":75,"height":10}},{"id":"86fd207b-ceca-4df2-aa60-e6086ee429b7","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":232,"box":{"x":117,"y":149,"width":610,"height":12}},{"id":"f4d561ae-cb60-4208-83d5-65192506d4f6","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C","page_number":232,"box":{"x":116,"y":172,"width":725,"height":12}},{"id":"dbf4fb72-8bd0-460a-94ed-927a29f9f079","block_type":"box","text":"Shares purchased through certain employer-sponsored retirement plans and fee-based programs","page_number":232,"box":{"x":116,"y":188,"width":729,"height":12}},{"id":"0167aac5-18ba-450f-9cd9-42077cbfda7f","block_type":"box","text":"previously approved by certain Funds and rollovers of current investments in the Fund through such","page_number":232,"box":{"x":117,"y":203,"width":745,"height":12}},{"id":"5d747242-5797-447b-9c7b-5dcdb392c537","block_type":"box","text":"plans; (2) exchanges described in “Exchange Privilege” below; (3) redemptions made in connection","page_number":232,"box":{"x":117,"y":219,"width":741,"height":12}},{"id":"7bb00d27-2629-4a6e-ae03-e0ce1bc77208","block_type":"box","text":"with minimum required distributions due to the shareholder reaching age 72 from IRA and 403(b)(7)","page_number":232,"box":{"x":116,"y":234,"width":744,"height":12}},{"id":"0191c975-71d1-43ea-b3b8-710f05e21af3","block_type":"box","text":"accounts; (4) redemptions made with respect to certain retirement plans sponsored by the Fund,","page_number":232,"box":{"x":116,"y":250,"width":721,"height":12}},{"id":"35921f15-a6f1-4cfc-8fd3-e67a681408bb","block_type":"box","text":"BlackRock or its affiliates; (5) redemptions in connection with a shareholder’s death as long as the","page_number":232,"box":{"x":117,"y":265,"width":732,"height":12}},{"id":"65a7b885-c16d-4b81-aeb7-d3adf1778226","block_type":"box","text":"waiver request is made within one year of death or, if later, reasonably promptly following completion of","page_number":232,"box":{"x":116,"y":281,"width":772,"height":12}},{"id":"be2c9994-c72d-44fe-900a-d824cd919578","block_type":"box","text":"probate (including in connection with the distribution of account assets to a beneficiary of the decedent)","page_number":232,"box":{"x":117,"y":296,"width":771,"height":12}},{"id":"7c7f8893-4fc8-443a-9e77-5e8ef12c8088","block_type":"box","text":"or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":232,"box":{"x":116,"y":312,"width":766,"height":12}},{"id":"a91a211a-e3d3-407a-b7c4-202a0060150b","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent","page_number":232,"box":{"x":117,"y":327,"width":770,"height":12}},{"id":"75872553-fbfc-4bb0-bdf0-8b71441ddbca","block_type":"box","text":"to the purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low","page_number":232,"box":{"x":116,"y":343,"width":749,"height":12}},{"id":"e10706fc-f8c7-4035-9c84-d4b74fac4e5e","block_type":"box","text":"balances as described in “Redemption of Shares” below; (8) redemptions made pursuant to a","page_number":232,"box":{"x":117,"y":358,"width":698,"height":12}},{"id":"ccf047a1-3510-41af-882b-e320af229dbe","block_type":"box","text":"systematic withdrawal plan, subject to the limitations set forth under “Systematic Withdrawal Plan”","page_number":232,"box":{"x":116,"y":374,"width":731,"height":12}},{"id":"3b596f09-f5a1-4abf-9246-ef9c62838382","block_type":"box","text":"below; (9) redemptions related to the payment of BNY Mellon Investment Servicing Trust Company","page_number":232,"box":{"x":117,"y":389,"width":740,"height":12}},{"id":"10b855d3-8655-43d1-b311-972abf8d41be","block_type":"box","text":"custodial IRA fees; and (10) redemptions when a shareholder can demonstrate hardship, in the","page_number":232,"box":{"x":116,"y":405,"width":712,"height":12}},{"id":"0a3296bd-9fc6-41db-a119-b39a9585a8fe","block_type":"box","text":"absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares acquired","page_number":232,"box":{"x":116,"y":420,"width":716,"height":12}},{"id":"e905f93b-28fa-4a55-a52c-f6ab68850fdc","block_type":"box","text":"through the reinvestment of dividends or distributions.","page_number":232,"box":{"x":116,"y":436,"width":404,"height":12}},{"id":"dc5624be-13e6-4296-b58e-c515dfda1025","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain","page_number":232,"box":{"x":117,"y":467,"width":756,"height":12}},{"id":"4696e59f-98a2-493f-932a-7621b550d5e9","block_type":"box","text":"financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in","page_number":232,"box":{"x":116,"y":482,"width":746,"height":12}},{"id":"e403b533-f5b2-4d29-bfcc-67d6f165ac42","block_type":"box","text":"the Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":232,"box":{"x":116,"y":498,"width":662,"height":12}},{"id":"30ce7cc5-b8c9-4b5e-82e7-0c643f593a23","block_type":"box","text":"Class R Shares","page_number":232,"box":{"x":116,"y":529,"width":127,"height":9}},{"id":"d252d632-2b38-4967-bf9f-c5b029ebc61e","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R","page_number":232,"box":{"x":117,"y":552,"width":727,"height":12}},{"id":"f695e04d-374c-4f41-9207-ca011c821721","block_type":"box","text":"Shares are available only to certain employer-sponsored retirement plans. Class R Shares are not","page_number":232,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"27c16827-dc41-48eb-abce-75fd35365c10","block_type":"box","text":"subject to an initial sales charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per","page_number":232,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"41b7e94c-9293-43bb-bcbf-c5de07ade388","block_type":"box","text":"year and an ongoing service fee of 0.25% per year. Distribution fees are used to support the Fund’s","page_number":232,"box":{"x":116,"y":599,"width":745,"height":12}},{"id":"4419b21b-1c38-44ff-b2ad-aec039a5a385","block_type":"box","text":"marketing and distribution efforts, such as compensating financial advisers and other financial","page_number":232,"box":{"x":117,"y":614,"width":700,"height":12}},{"id":"9ee3e6e8-d1d7-476b-aee0-e0db8d7810e1","block_type":"box","text":"intermediaries, advertising and promotion. Service fees are used to compensate securities dealers and","page_number":232,"box":{"x":117,"y":630,"width":768,"height":12}},{"id":"a30f5cd2-75fb-405a-bbfa-1f4171e42296","block_type":"box","text":"other financial intermediaries for service activities.","page_number":232,"box":{"x":116,"y":645,"width":376,"height":10}},{"id":"b34ac77c-d70c-48ff-9b62-b127107e07f6","block_type":"box","text":"If Class R Shares are held over time, these","page_number":232,"box":{"x":117,"y":676,"width":319,"height":11}},{"id":"c2a4706b-fd30-4221-82a7-a96ad2e79fd4","block_type":"box","text":"fees may exceed the maximum sales charge that an","page_number":232,"box":{"x":442,"y":676,"width":388,"height":12}},{"id":"6bc06703-bb4b-4268-92df-213d09d63ab5","block_type":"box","text":"investor would have paid as a shareholder of one of the other share classes.","page_number":232,"box":{"x":117,"y":692,"width":566,"height":12}},{"id":"586c3319-71cc-436b-822a-d969e26a7c9e","block_type":"box","text":"Class K Shares","page_number":232,"box":{"x":116,"y":723,"width":122,"height":9}},{"id":"bde0770d-93e4-4dbd-a4f9-4793b9e7aa21","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are","page_number":232,"box":{"x":117,"y":746,"width":761,"height":12}},{"id":"fdde2158-0249-45a1-a6e1-b3e5cd81a9f1","block_type":"box","text":"available only to (i) certain employee benefit plans, such as health savings accounts, and certain","page_number":232,"box":{"x":116,"y":761,"width":716,"height":13}},{"id":"2a5055dc-4eb7-46a1-9a8b-8678a25551d6","block_type":"box","text":"employer-sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs)","page_number":232,"box":{"x":116,"y":777,"width":694,"height":12}},{"id":"d73f53cf-5a29-4829-9936-67a4091373ee","block_type":"box","text":"(collectively, “Employer-Sponsored Retirement Plans”), (ii) collective trust funds, investment companies","page_number":232,"box":{"x":117,"y":792,"width":765,"height":13}},{"id":"c270d210-c103-4af8-8c21-b7b393af5c86","block_type":"box","text":"and other pooled investment vehicles, each of which may purchase shares of the Fund through a","page_number":232,"box":{"x":116,"y":808,"width":720,"height":12}},{"id":"7bca35f2-d4ed-4693-9e0a-aa44150c31a7","block_type":"box","text":"financial intermediary that has entered into an agreement with the Distributor to purchase such shares,","page_number":232,"box":{"x":116,"y":823,"width":761,"height":13}},{"id":"f43b8fa5-4a97-4730-a530-46467dc88012","block_type":"box","text":"(iii) “Institutional Investors,” which include but are not limited to, endowments, foundations, family","page_number":232,"box":{"x":117,"y":839,"width":722,"height":12}},{"id":"3ce24987-312f-4eb1-81cd-aa05b006a449","block_type":"box","text":"offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":232,"box":{"x":116,"y":854,"width":710,"height":13}},{"id":"5dce8af6-b55a-410b-9d9a-e74414719163","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a","page_number":232,"box":{"x":117,"y":870,"width":735,"height":12}},{"id":"53434b18-4fb2-4de3-b23e-135e5a6ec52b","block_type":"box","text":"II-138","page_number":232,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"73be9d79-cec9-49be-93df-518b58858607","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":232,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"191a0867-9228-4a19-8988-8cd794e0e5c8","block_type":"box","text":"financial intermediary that has entered into an agreement with the Distributor to purchase such shares,","page_number":233,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"fc0b4b67-2bb6-4e7d-ac9b-361a84cfc5ea","block_type":"box","text":"(iv) clients of private banks that purchase shares of the Fund through a financial intermediary that has","page_number":233,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"1f9a229f-630e-4122-b028-7694f3073a12","block_type":"box","text":"entered into an agreement with the Distributor to sell such shares; (v) fee-based advisory platforms of","page_number":233,"box":{"x":116,"y":118,"width":759,"height":12}},{"id":"1346a523-d7f0-439d-9be3-5fa02fc05bc9","block_type":"box","text":"a financial intermediary that (a) has specifically acknowledged in a written agreement with the","page_number":233,"box":{"x":116,"y":134,"width":699,"height":12}},{"id":"d28ab4cb-2801-4a03-9196-1771af3e08ea","block_type":"box","text":"Distributor and/or its affiliate(s) that the financial intermediary shall offer such shares to fee-based","page_number":233,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"588b0660-0f15-41b5-9555-523c9a6640d1","block_type":"box","text":"advisory clients through an omnibus account held at the Fund or (b) transacts in the Fund’s shares","page_number":233,"box":{"x":116,"y":165,"width":737,"height":12}},{"id":"b922cf6f-db5d-4a14-b529-96263aa9007a","block_type":"box","text":"through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":233,"box":{"x":116,"y":180,"width":750,"height":12}},{"id":"f1f4533a-2c1f-42ff-a810-bb2c2171c293","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have","page_number":233,"box":{"x":117,"y":196,"width":748,"height":12}},{"id":"26ce5d1f-23db-4285-9157-b62021f06b59","block_type":"box","text":"continually held Class K Shares of the Fund or the respective Predecessor Fund in the same account","page_number":233,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"8141aaaa-0d44-4a5f-85b9-8cd82634d67e","block_type":"box","text":"since August 15, 2016. The agreement referenced in (iv) above shall appear in a supplemental","page_number":233,"box":{"x":116,"y":227,"width":709,"height":12}},{"id":"2fe3a4ae-4e5b-494e-a82e-a514bf596f80","block_type":"box","text":"agreement to any selling, sub-transfer agent, or distribution and marketing agreement.","page_number":233,"box":{"x":116,"y":242,"width":645,"height":12}},{"id":"fb31f269-2bc1-46bc-9b2d-31285a62a38b","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":233,"box":{"x":117,"y":271,"width":762,"height":12}},{"id":"9cc1307d-3f48-479a-8e74-0607d795473d","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly","page_number":233,"box":{"x":117,"y":287,"width":738,"height":12}},{"id":"4339bd46-42c4-4537-b7f7-3f764030970a","block_type":"box","text":"with BlackRock. Eligible individuals who would like to convert existing holdings to Class K Shares must","page_number":233,"box":{"x":116,"y":302,"width":767,"height":12}},{"id":"32a0a671-8c61-42b3-9c79-96f567f8a78c","block_type":"box","text":"contact BlackRock.","page_number":233,"box":{"x":116,"y":318,"width":148,"height":9}},{"id":"5a1f58a0-9f75-475f-b1a3-65083dc4d5aa","block_type":"box","text":"Class G Shares","page_number":233,"box":{"x":116,"y":347,"width":128,"height":10}},{"id":"7efad4a6-dfdf-4f18-ad74-12b759addad0","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible","page_number":233,"box":{"x":117,"y":369,"width":767,"height":13}},{"id":"0a1d9e77-3ad2-45d6-8067-d6f4d4fec067","block_type":"box","text":"platforms are those where clients invest in the Fund through a single omnibus account in the name of a","page_number":233,"box":{"x":117,"y":385,"width":770,"height":12}},{"id":"19dd13f0-00e0-48eb-a9f9-8ed2d20cd8de","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. For clients investing","page_number":233,"box":{"x":116,"y":400,"width":720,"height":13}},{"id":"df027bb0-3df2-4030-8d4b-40ed820b1075","block_type":"box","text":"through such eligible platforms, the Fund does not impose investment minimums on any individual","page_number":233,"box":{"x":116,"y":416,"width":734,"height":12}},{"id":"192b7a4a-e70b-43cb-9e3b-0ae16ab55ef1","block_type":"box","text":"investor. Financial intermediaries may impose separate eligibility requirements.","page_number":233,"box":{"x":117,"y":432,"width":591,"height":12}},{"id":"9fc44150-9af6-43f4-8d5e-72fc19f5c586","block_type":"box","text":"Service Shares","page_number":233,"box":{"x":116,"y":461,"width":125,"height":9}},{"id":"365d41ec-a372-43f3-8771-15ecf0d2154b","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain","page_number":233,"box":{"x":117,"y":483,"width":755,"height":12}},{"id":"8960e1bf-9cb0-4967-8e45-c9492a4f2c8d","block_type":"box","text":"financial institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain","page_number":233,"box":{"x":116,"y":499,"width":772,"height":12}},{"id":"ae1be7a0-0581-45e7-8bb6-45765d871a39","block_type":"box","text":"persons who were shareholders of the Compass Capital Group of Funds at the time of its combination","page_number":233,"box":{"x":117,"y":514,"width":762,"height":12}},{"id":"bd932faa-2c82-4b08-90b4-72af3145845f","block_type":"box","text":"with The PNC","page_number":233,"box":{"x":116,"y":530,"width":103,"height":9}},{"id":"afc6f43a-c4c7-4ad3-b7bc-4a2858d2c4f0","block_type":"box","text":"®","page_number":233,"box":{"x":219,"y":529,"width":10,"height":7}},{"id":"82968e42-8dc6-43be-abf1-45eb25a334bf","block_type":"box","text":"Fund in 1996; and (iii) participants in the Capital Directions","page_number":233,"box":{"x":229,"y":530,"width":440,"height":12}},{"id":"0cafde58-b088-4758-a119-82ccb7e6a3c1","block_type":"box","text":"SM","page_number":233,"box":{"x":670,"y":530,"width":15,"height":6}},{"id":"1b2249e3-cae8-4501-bc8b-659023e1883b","block_type":"box","text":"asset allocation program.","page_number":233,"box":{"x":686,"y":530,"width":197,"height":12}},{"id":"417f62d6-d99b-4f83-9847-d9121538637d","block_type":"box","text":"Service Shares are not subject to an initial sales charge or a CDSC but are subject to an ongoing","page_number":233,"box":{"x":116,"y":545,"width":727,"height":12}},{"id":"9106fd7d-ecfd-42fa-aa23-94ceb4225baa","block_type":"box","text":"service fee as set forth in the applicable Fund’s Prospectus.","page_number":233,"box":{"x":116,"y":561,"width":449,"height":12}},{"id":"c40f4488-0463-4a2a-8e8b-e81442ce02b6","block_type":"box","text":"BlackRock Shares","page_number":233,"box":{"x":117,"y":590,"width":150,"height":9}},{"id":"67822e02-d6b7-45ec-a7dd-a8cfe7de37e1","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares","page_number":233,"box":{"x":117,"y":612,"width":770,"height":12}},{"id":"32181741-bf18-447a-9013-9ef207b6b948","block_type":"box","text":"are offered without a sales charge to institutional and individual investors, registered investment","page_number":233,"box":{"x":116,"y":628,"width":715,"height":12}},{"id":"3b6be63a-df77-424b-8005-93494040c5fb","block_type":"box","text":"advisers and certain fee-based programs.","page_number":233,"box":{"x":116,"y":643,"width":315,"height":12}},{"id":"75bbe048-a3e6-4ab4-9b7c-811e1052a93f","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":233,"box":{"x":117,"y":672,"width":382,"height":13}},{"id":"77fa3fd5-c36f-4a81-8282-28d0b08a1a6a","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company","page_number":233,"box":{"x":117,"y":695,"width":764,"height":12}},{"id":"8c87f304-e727-4ad5-bc05-9c484641b3c9","block_type":"box","text":"Act with respect to certain share classes that allows the Fund to pay distribution fees for the sale of its","page_number":233,"box":{"x":116,"y":710,"width":756,"height":12}},{"id":"010e2eaf-fe84-484d-a705-281e90b816be","block_type":"box","text":"shares and shareholder servicing fees for certain services provided to its shareholders.","page_number":233,"box":{"x":116,"y":726,"width":645,"height":12}},{"id":"76da8028-e5fc-4683-8c0a-c3eb2dfc178f","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant","page_number":233,"box":{"x":117,"y":755,"width":725,"height":12}},{"id":"7741287a-1e6e-4a45-b733-16418c7a02f8","block_type":"box","text":"shareholder of BlackRock, fees for distribution and sales support services with respect to Investor A,","page_number":233,"box":{"x":116,"y":771,"width":744,"height":12}},{"id":"d4e62f71-e836-4533-ab6b-90d3f098aede","block_type":"box","text":"Investor A1, Investor C, Investor P, Service and Class R Shares. Currently, as described further below,","page_number":233,"box":{"x":117,"y":786,"width":763,"height":12}},{"id":"f9e07d5c-4395-44e4-b2e9-b9c0f6856f01","block_type":"box","text":"only Investor C and Class R Shares bear the expense of distribution fees under a Plan.","page_number":233,"box":{"x":116,"y":802,"width":646,"height":12}},{"id":"f8ace9de-434a-45bd-b9de-75f5a28678b5","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers","page_number":233,"box":{"x":117,"y":831,"width":735,"height":12}},{"id":"00f13ebd-86c7-4151-ad43-d502210ebebc","block_type":"box","text":"shares of each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales","page_number":233,"box":{"x":116,"y":846,"width":762,"height":12}},{"id":"10261b53-7bc0-45d6-86e0-37cf8a4634e4","block_type":"box","text":"of the shares, but it is not obligated to sell any particular amount of shares. BRIL’s principal business","page_number":233,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"28cc3f60-cd4e-4f3e-8b81-60c65449f6e3","block_type":"box","text":"address is 50 Hudson Yards, New York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":233,"box":{"x":116,"y":877,"width":635,"height":12}},{"id":"b940f297-bede-4d6f-a3f7-6ccc9fa7ef8d","block_type":"box","text":"II-139","page_number":233,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d88d33d9-b482-4f4a-8eb2-b21205eea6d0","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":233,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d658de7f-a684-4d65-9e64-701b71ce75cb","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":234,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"acb8da1b-5da1-4095-b691-6ca5658d0391","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions,","page_number":234,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"ba6503d9-4bfe-44f4-8bde-46a2d89c6f26","block_type":"box","text":"insurance companies, retirement plan record-keepers and other financial intermediaries (including","page_number":234,"box":{"x":117,"y":118,"width":731,"height":12}},{"id":"d0b319e4-b03f-40d6-8c07-57fec0b79c47","block_type":"box","text":"BlackRock, BRIL and their affiliates) (collectively, “Service Organizations”) for certain support services","page_number":234,"box":{"x":117,"y":134,"width":761,"height":12}},{"id":"7c587319-a0eb-426c-9b8d-18c48f1022a2","block_type":"box","text":"rendered by Service Organizations to their customers (“Customers”) who are the beneficial owners of","page_number":234,"box":{"x":117,"y":149,"width":756,"height":12}},{"id":"e18d0cba-06b2-40f0-b823-b3508b45f05e","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Service and Class R Shares of a Fund. Such services","page_number":234,"box":{"x":117,"y":165,"width":755,"height":11}},{"id":"87d9b393-bb2d-4beb-8d9c-f0b152eb840e","block_type":"box","text":"are intended to supplement the services provided by the Fund’s Administrators and Transfer Agent to","page_number":234,"box":{"x":116,"y":180,"width":758,"height":12}},{"id":"0914f424-ebea-4371-a1f1-d05ca5cc9ce2","block_type":"box","text":"the Fund’s shareholders of record.","page_number":234,"box":{"x":116,"y":196,"width":261,"height":9}},{"id":"242ad02b-3f8e-4bef-9f55-8df2e6aba86f","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services,","page_number":234,"box":{"x":116,"y":227,"width":728,"height":12}},{"id":"c2448993-ffd3-4920-ac83-3fb17eac5b9c","block_type":"box","text":"which include, but are not limited to: (i) answering Customer inquiries regarding account status and","page_number":234,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"a447da08-ba61-4c12-aed8-e4989598da85","block_type":"box","text":"history, the manner in which purchases, exchanges and redemptions or repurchases of shares may be","page_number":234,"box":{"x":117,"y":258,"width":767,"height":12}},{"id":"b165dd66-1fcf-4236-b2bb-da2cd0f6513f","block_type":"box","text":"effected and certain other matters pertaining to the Customers’ investments; and (ii) assisting","page_number":234,"box":{"x":116,"y":273,"width":697,"height":12}},{"id":"d9ffdbef-d018-4430-b929-11d3d6a0c3f5","block_type":"box","text":"Customers in designating and changing dividend options, account designations and addresses. The","page_number":234,"box":{"x":117,"y":289,"width":746,"height":12}},{"id":"32bad18f-582f-47f2-bd25-1535ff3bf5e5","block_type":"box","text":"shareholder servicing fees payable pursuant to the Plans are paid to compensate Service","page_number":234,"box":{"x":116,"y":304,"width":670,"height":12}},{"id":"a0ac7147-109c-4979-9fcd-80aa0fd4a1e1","block_type":"box","text":"Organizations for the administration and servicing of shareholder accounts and are not costs which are","page_number":234,"box":{"x":116,"y":320,"width":769,"height":12}},{"id":"88668dcf-59fb-412b-ac9d-66a578db7f36","block_type":"box","text":"primarily intended to result in the sale of the Fund’s shares.","page_number":234,"box":{"x":117,"y":335,"width":444,"height":12}},{"id":"80e4ab36-2cc1-4200-bd5a-a7a1ecd94592","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the","page_number":234,"box":{"x":117,"y":366,"width":746,"height":12}},{"id":"a1203208-8491-4655-b86d-496d45d8017b","block_type":"box","text":"shares in the applicable share class regardless of the amount of expenses incurred. As a result,","page_number":234,"box":{"x":116,"y":382,"width":716,"height":12}},{"id":"60cbef0b-8189-4a5c-a89a-682afec9d415","block_type":"box","text":"payments under the Plans may be more or less than expenses incurred in connection with providing","page_number":234,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"87021726-0928-4821-910e-1c30e9f277f9","block_type":"box","text":"distribution and/or shareholder services with respect to the related class. Information with respect to","page_number":234,"box":{"x":116,"y":413,"width":746,"height":12}},{"id":"66249b15-d659-42a1-9155-c2c080c7f259","block_type":"box","text":"the payments under the Plans and expenses incurred in providing services with respect to the related","page_number":234,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"dab3715f-bc6a-47cf-9ce0-e3a8005a977e","block_type":"box","text":"class is presented to the Directors for their consideration quarterly. Payments under the Plans consist","page_number":234,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"06893699-7bd2-45fe-b6b4-d4acd653d57f","block_type":"box","text":"of the shareholder servicing fees and the distribution fees. Expenses with respect to providing","page_number":234,"box":{"x":116,"y":459,"width":701,"height":12}},{"id":"3901289b-c3c7-4a44-8c1f-f6c008b5c532","block_type":"box","text":"distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":234,"box":{"x":116,"y":475,"width":742,"height":12}},{"id":"25fdfe02-3973-4866-93be-6ea53908ea9b","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction","page_number":234,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"e87148d5-182f-427f-a4ae-e8d77e0ef4e2","block_type":"box","text":"processing expenses, advertising, sales promotion and marketing expenses. Payments under the","page_number":234,"box":{"x":117,"y":506,"width":728,"height":12}},{"id":"6ba2780b-3d26-4fc6-aac0-18eaea939c0b","block_type":"box","text":"Plans with respect to one class will not be used to finance the expenditures of another class. Sales","page_number":234,"box":{"x":117,"y":521,"width":737,"height":12}},{"id":"7d11f08a-f193-4c4a-a227-af104d880178","block_type":"box","text":"personnel may receive different compensation for selling different classes of shares.","page_number":234,"box":{"x":117,"y":537,"width":629,"height":12}},{"id":"d1a5cf04-50a1-4469-a998-8c53d0f6a503","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their","page_number":234,"box":{"x":117,"y":568,"width":717,"height":12}},{"id":"9018f672-e275-4c3d-b45f-309cc71c0ea6","block_type":"box","text":"consideration of a Plan, the Directors must consider all factors they deem relevant, including","page_number":234,"box":{"x":116,"y":583,"width":690,"height":12}},{"id":"a6f64261-2f3d-42a8-880d-2251fba1ec2e","block_type":"box","text":"information as to the benefits of the Plan to the Fund and the related class of shareholders. In","page_number":234,"box":{"x":117,"y":599,"width":699,"height":9}},{"id":"38858f1a-6b94-43e2-95e8-e0b9a7c8a646","block_type":"box","text":"approving a Plan in accordance with Rule 12b-1, the non-interested Directors concluded that there is","page_number":234,"box":{"x":116,"y":614,"width":753,"height":12}},{"id":"2e2f047c-8442-4c25-bd12-de60b5e2f9d9","block_type":"box","text":"reasonable likelihood that the Plan will benefit the Fund and its related class of shareholders. The Plan","page_number":234,"box":{"x":117,"y":630,"width":766,"height":9}},{"id":"432cde22-5843-4af1-a177-c872ec57dd19","block_type":"box","text":"provides, among other things, that: (i) the Board of Directors shall receive quarterly reports regarding","page_number":234,"box":{"x":117,"y":645,"width":752,"height":12}},{"id":"7ec73a25-fd7b-4a3b-97c6-123b9c303330","block_type":"box","text":"the amounts expended under the Plan and the purposes for which such expenditures were made; (ii)","page_number":234,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"65a326b3-04e2-48d9-b869-a80f2d37cf66","block_type":"box","text":"the Plan will continue in effect for so long as its continuance is approved at least annually by the Board","page_number":234,"box":{"x":116,"y":676,"width":761,"height":12}},{"id":"079b2cf9-f815-441f-9539-b0fce88a9417","block_type":"box","text":"of Directors, including the directors who are not “interested persons” of the Fund (as defined in the","page_number":234,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"3aa1cf75-6ac5-4026-a525-99b593f48fea","block_type":"box","text":"Investment Company Act) and who have no direct or indirect financial interest in the operation of the","page_number":234,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"c8611cb1-4aba-4345-8404-a86a24282044","block_type":"box","text":"Plan or any agreement entered into in connection with the Plan (the “12b-1 Directors”), acting in person","page_number":234,"box":{"x":117,"y":723,"width":765,"height":12}},{"id":"dc2a5668-c07a-420b-b636-cbcf075d9cfb","block_type":"box","text":"at a meeting called for said purpose in accordance with Rule 12b-1 under the Investment Company","page_number":234,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"17b4ea33-19bf-41b8-8d34-a8a98fa9f566","block_type":"box","text":"Act; (iii) any material amendment thereto must be approved by the Board of Directors, including the","page_number":234,"box":{"x":116,"y":754,"width":737,"height":12}},{"id":"de728fd4-4c0f-47e9-a184-5e5962b1df9d","block_type":"box","text":"12b-1 Directors, acting in person at a meeting called for said purpose; (iv) any amendment to increase","page_number":234,"box":{"x":118,"y":769,"width":757,"height":12}},{"id":"c07e70c0-27be-489f-925d-50a87f1cb4d1","block_type":"box","text":"materially the costs which any class of shares may bear for distribution services pursuant to the Plan","page_number":234,"box":{"x":117,"y":785,"width":745,"height":12}},{"id":"69d02ba7-2cf4-43c3-afcc-3d37f059c432","block_type":"box","text":"shall be effective only upon approval by a vote of a majority of the outstanding shares of such class","page_number":234,"box":{"x":116,"y":800,"width":736,"height":12}},{"id":"6d2a945c-6e55-4067-9caf-4d59f26bc79d","block_type":"box","text":"and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":234,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"bd9581a9-4e8a-4eb1-9521-7ebee195f0ef","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the","page_number":234,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"b3472bec-f624-45c5-8422-5040e9fc3306","block_type":"box","text":"Fund’s Directors who are not “interested persons” of the Fund shall be committed to the discretion of","page_number":234,"box":{"x":117,"y":847,"width":750,"height":12}},{"id":"cd8eea87-d199-4cdf-bbc8-21462a0af200","block_type":"box","text":"the Fund’s non-interested Directors. Rule 12b-1 further requires that each Fund preserve copies of","page_number":234,"box":{"x":116,"y":862,"width":737,"height":12}},{"id":"0c498683-dc4f-4d5d-8761-a3d59a3b1bac","block_type":"box","text":"II-140","page_number":234,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"7ee3e845-171a-4182-b2e0-513c28587148","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":234,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"18497d2f-5553-4cfd-b065-20478a2e27d9","block_type":"box","text":"each Plan and any report made pursuant to such Plan for a period of not less than six years from the","page_number":235,"box":{"x":116,"y":87,"width":753,"height":12}},{"id":"a08e3b40-8147-41ac-a8a6-cb6b05f03d3f","block_type":"box","text":"date of the Plan or such report, the first two years in an easily accessible place.","page_number":235,"box":{"x":116,"y":102,"width":594,"height":13}},{"id":"5ac72092-2437-41e3-a1e3-cfff198c017b","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","page_number":235,"box":{"x":117,"y":132,"width":762,"height":13}},{"id":"49dde3e1-e9e9-4dbd-beb7-f30beb409ce3","block_type":"box","text":"the 12b-1 Directors, or by vote of the holders of a majority of the shares of such class.","page_number":235,"box":{"x":116,"y":148,"width":643,"height":12}},{"id":"b4e7e9f0-3d1b-4086-afee-8a987cbe8d2e","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":235,"box":{"x":116,"y":178,"width":770,"height":12}},{"id":"456ebbd8-18fa-4743-8644-5beee114c040","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s","page_number":235,"box":{"x":117,"y":193,"width":759,"height":12}},{"id":"1414776a-0620-4459-8746-38ab57ad0242","block_type":"box","text":"most recent fiscal year.","page_number":235,"box":{"x":117,"y":209,"width":177,"height":12}},{"id":"c4291ad0-39ef-4a99-bd88-38b4f7aa5bc7","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":235,"box":{"x":117,"y":239,"width":439,"height":12}},{"id":"a19b13d3-d3eb-4e11-ab27-6416a0e5226a","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority","page_number":235,"box":{"x":116,"y":261,"width":745,"height":13}},{"id":"7437cec9-db35-4c42-adc1-52b624a9c766","block_type":"box","text":"(“FINRA”) imposes a limitation on certain asset-based sales charges such as the distribution fee borne","page_number":235,"box":{"x":117,"y":277,"width":765,"height":12}},{"id":"093e1e32-35c1-4f31-a4ae-41a272287202","block_type":"box","text":"by Class R Shares, and the distribution fee and the CDSC borne by the Investor C Shares. This","page_number":235,"box":{"x":117,"y":292,"width":715,"height":13}},{"id":"f91e54eb-30b8-4910-9b41-c0c7f729c2b6","block_type":"box","text":"limitation does not apply to the shareholder servicing fee. The maximum sales charge rule is applied","page_number":235,"box":{"x":117,"y":308,"width":748,"height":12}},{"id":"1e59ee5a-2da6-4b8f-b3f9-a366dd744b52","block_type":"box","text":"separately to each class and limits the aggregate of distribution fee payments and CDSCs payable by","page_number":235,"box":{"x":116,"y":323,"width":759,"height":13}},{"id":"47de3b6e-68b3-4eed-9741-e15ef48de803","block_type":"box","text":"a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R Shares, computed separately","page_number":235,"box":{"x":116,"y":339,"width":739,"height":12}},{"id":"ba1c494f-e335-4cb6-8104-a337498db3a5","block_type":"box","text":"(excluding shares issued pursuant to dividend reinvestments and exchanges), plus (2) interest on the","page_number":235,"box":{"x":117,"y":354,"width":756,"height":13}},{"id":"e584278c-011f-40dc-ab56-ec48ec0fc616","block_type":"box","text":"unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the unpaid","page_number":235,"box":{"x":117,"y":370,"width":746,"height":12}},{"id":"bec970ab-718a-4c22-a682-b7d0269e6ca9","block_type":"box","text":"balance being the maximum amount payable minus amounts received from the payment of the","page_number":235,"box":{"x":117,"y":385,"width":708,"height":13}},{"id":"eda45ef6-d7f6-4ecc-9550-4a94599de20c","block_type":"box","text":"distribution fee and the CDSC). See “Information on Sales Charges and Distribution Related","page_number":235,"box":{"x":116,"y":401,"width":689,"height":12}},{"id":"14d260e8-e2e5-42ff-aed3-7da2aedad8d3","block_type":"box","text":"Expenses” in Part I of each Fund’s SAI for comparative information as of your Fund’s most recent fiscal","page_number":235,"box":{"x":117,"y":416,"width":771,"height":13}},{"id":"db4c8cbe-1fff-4091-bf97-5485cfd8e051","block_type":"box","text":"year end with respect to, if applicable, the Investor C and Class R Shares of your Fund.","page_number":235,"box":{"x":116,"y":432,"width":654,"height":12}},{"id":"d3c26ba9-4bca-4737-8d09-2bc81092266e","block_type":"box","text":"Other Payments by the Fund","page_number":235,"box":{"x":116,"y":462,"width":234,"height":12}},{"id":"c8921a6e-8f75-44ec-a3c2-69cc420fedea","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the","page_number":235,"box":{"x":117,"y":485,"width":770,"height":12}},{"id":"7a770cda-b63a-4314-905c-8569280c0e49","block_type":"box","text":"Plan and fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into","page_number":235,"box":{"x":117,"y":500,"width":733,"height":12}},{"id":"ffc3fc20-8eef-475e-99c8-e1cbfe00b1b7","block_type":"box","text":"non-Plan agreements with Service Organizations pursuant to which the Fund will pay a Service","page_number":235,"box":{"x":117,"y":516,"width":711,"height":12}},{"id":"3c31a3c9-7287-4dd4-9f93-66d78a28a2b2","block_type":"box","text":"Organization for administrative, networking, recordkeeping, sub-transfer agency, sub-accounting and/","page_number":235,"box":{"x":116,"y":531,"width":754,"height":12}},{"id":"881a6d13-11fe-4a77-87b7-42da8eec973d","block_type":"box","text":"or shareholder services. These non-Plan payments are generally based on either (1) a percentage of","page_number":235,"box":{"x":116,"y":547,"width":755,"height":12}},{"id":"0fbee6b0-74f4-4024-9873-4a5075d5a826","block_type":"box","text":"the average daily net assets of Fund shareholders serviced by a Service Organization or (2) a fixed","page_number":235,"box":{"x":116,"y":562,"width":742,"height":12}},{"id":"5eec2482-8bb2-446b-9ca4-671785c63878","block_type":"box","text":"dollar amount for each account serviced by a Service Organization. The aggregate amount of these","page_number":235,"box":{"x":116,"y":578,"width":745,"height":12}},{"id":"59f138d0-9a60-4c52-9ecb-061bb8afe35d","block_type":"box","text":"payments may be substantial.","page_number":235,"box":{"x":117,"y":593,"width":226,"height":12}},{"id":"61bf250b-0489-4938-a185-f2db457aabe9","block_type":"box","text":"Additional Payments by BlackRock","page_number":235,"box":{"x":116,"y":623,"width":286,"height":12}},{"id":"119788c5-8a9a-445a-9769-7e6b0463d893","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively","page_number":235,"box":{"x":117,"y":646,"width":707,"height":12}},{"id":"18c79fea-695d-452a-80ea-f68d2b8c2a43","block_type":"box","text":"as “BlackRock”) may compensate Service Organizations for the sale and distribution of shares of a","page_number":235,"box":{"x":116,"y":661,"width":734,"height":12}},{"id":"1d9dfeb2-8ef7-418b-9965-fc70da11e80d","block_type":"box","text":"Fund, for services to a Fund and its shareholders and/or for data provision or technology support. A","page_number":235,"box":{"x":117,"y":677,"width":738,"height":12}},{"id":"f472a10c-7f1f-4e9e-a5aa-4eb4adf17d73","block_type":"box","text":"Service Organization may perform these obligations itself or may arrange for a third party to perform","page_number":235,"box":{"x":116,"y":692,"width":743,"height":12}},{"id":"476fbc10-e7cb-4f57-bb6e-930b6dfe3eae","block_type":"box","text":"them. These payments, which are not made pursuant to a Plan or otherwise paid by a Fund, are","page_number":235,"box":{"x":116,"y":708,"width":714,"height":12}},{"id":"0faf4ca7-2c3a-4135-b177-eff0f221dba0","block_type":"box","text":"referred to as “Additional Payments” herein.","page_number":235,"box":{"x":117,"y":723,"width":323,"height":12}},{"id":"716fef00-d487-4e1f-9b52-2623230eed35","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly","page_number":235,"box":{"x":116,"y":753,"width":737,"height":12}},{"id":"117bb495-09a0-48aa-ad94-02a01d6a6721","block_type":"box","text":"from fees paid by a Fund to BlackRock for various services, such as investment advisory services).","page_number":235,"box":{"x":116,"y":769,"width":735,"height":12}},{"id":"5f5fa48f-86db-47ed-a2ee-4d1d4feaf202","block_type":"box","text":"These payments are not an additional charge to a Fund or its shareholders and do not change the","page_number":235,"box":{"x":116,"y":784,"width":728,"height":12}},{"id":"3d2c7c6d-12e9-4190-bf45-214633f06d5f","block_type":"box","text":"price paid by shareholders for the purchase of a Fund’s shares or the amount a Fund receives as","page_number":235,"box":{"x":117,"y":800,"width":720,"height":12}},{"id":"7bc1004a-02a7-468c-a142-101c4c797607","block_type":"box","text":"proceeds from such purchases. Additional Payments made to Service Organizations are in addition to","page_number":235,"box":{"x":117,"y":815,"width":755,"height":12}},{"id":"a1709d61-3319-4698-aac2-b10317e52560","block_type":"box","text":"any distribution or shareholder servicing fees paid under any Plan of any Fund, any sales charges,","page_number":235,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"fa2c0dbb-479e-4126-8e6c-50328b156038","block_type":"box","text":"commissions or other concessions described in the Prospectuses or this SAI, and any administrative,","page_number":235,"box":{"x":116,"y":846,"width":757,"height":12}},{"id":"6589675a-dd7a-4c83-8d6b-a97fef431b60","block_type":"box","text":"networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant","page_number":235,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"90fe9c9b-b130-44c8-8cc2-526d460f66a3","block_type":"box","text":"to applicable FINRA regulations, the details of certain of these payments, including the Service","page_number":235,"box":{"x":116,"y":877,"width":708,"height":12}},{"id":"cdb341ac-a58e-4467-8543-a22e4df3fe95","block_type":"box","text":"II-141","page_number":235,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"bb270e20-955e-4de7-83cd-c94e26dac6e4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":235,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a249bf7b-e6a9-4753-b653-17a3f5c5f97b","block_type":"box","text":"Organizations receiving such payments in connection with the sale and distribution of Fund shares, are","page_number":236,"box":{"x":116,"y":87,"width":770,"height":12}},{"id":"8549a4bf-0322-4952-8853-b45a7b0b4076","block_type":"box","text":"required to be disclosed. While FINRA regulations limit the sales charges that shareholders may bear,","page_number":236,"box":{"x":117,"y":103,"width":761,"height":12}},{"id":"f8a25569-d7a3-411c-9b0d-acb4b64d04af","block_type":"box","text":"there are no limits with regard to the amounts that BlackRock may pay out of its own assets.","page_number":236,"box":{"x":116,"y":118,"width":690,"height":12}},{"id":"c2282600-87c8-4f54-ae76-8e36810b73d4","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of","page_number":236,"box":{"x":116,"y":146,"width":695,"height":12}},{"id":"f86bf0a8-3c45-449f-8d6c-386a7ef81124","block_type":"box","text":"Customer accounts maintained by a Service Organization, may be based on a percentage of the value","page_number":236,"box":{"x":117,"y":162,"width":766,"height":12}},{"id":"ef55a129-f655-4312-8d80-ac5095abd234","block_type":"box","text":"of shares sold to, or held by, Customers of the Service Organization involved, or may be calculated on","page_number":236,"box":{"x":116,"y":177,"width":764,"height":12}},{"id":"90863564-d1a2-49ae-b3b9-d89a662c694b","block_type":"box","text":"another basis.","page_number":236,"box":{"x":116,"y":193,"width":110,"height":9}},{"id":"31cedc03-a392-43d0-b16f-6a96b495e52e","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis.","page_number":236,"box":{"x":117,"y":221,"width":730,"height":12}},{"id":"17efad08-06bc-41c7-bfa2-cbdf7d018b89","block_type":"box","text":"Additional Payments may be different for different Service Organizations, and some Service","page_number":236,"box":{"x":116,"y":237,"width":687,"height":12}},{"id":"7f2bc43f-fabd-4e2e-8884-8bf720d97bf1","block_type":"box","text":"Organizations may be paid pursuant to more than one of the calculations described above. Not all","page_number":236,"box":{"x":116,"y":252,"width":731,"height":12}},{"id":"db3bde62-79ba-471f-a667-357a57dc2a36","block_type":"box","text":"Service Organizations receive Additional Payments. Sales-based payments primarily create incentives","page_number":236,"box":{"x":116,"y":268,"width":766,"height":12}},{"id":"f22d3a31-7393-4132-a80c-27ab4bec21e0","block_type":"box","text":"to make new sales of shares of the Fund, and asset-based payments primarily create incentives to","page_number":236,"box":{"x":116,"y":283,"width":737,"height":12}},{"id":"2631a952-cd49-4eff-a6ee-881920e30052","block_type":"box","text":"retain previously sold shares of the Fund. The level of payments made to these Service Organizations","page_number":236,"box":{"x":117,"y":299,"width":761,"height":12}},{"id":"1358dcf9-88a8-44c3-9840-c8fd945a298a","block_type":"box","text":"in any year will vary and may be limited to specific Funds or share classes. In certain cases, these","page_number":236,"box":{"x":117,"y":314,"width":732,"height":12}},{"id":"bc734d50-94b2-455e-b624-a439a4937aaa","block_type":"box","text":"payments may be subject to certain minimum payment levels.","page_number":236,"box":{"x":117,"y":330,"width":463,"height":12}},{"id":"c63cd9cf-66dc-4af5-a247-c826f2a2ef0d","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be","page_number":236,"box":{"x":116,"y":358,"width":743,"height":12}},{"id":"7091b480-7349-4f6a-bdb6-60b662aca033","block_type":"box","text":"significant to certain Service Organizations. The categories of Additional Payments listed below are not","page_number":236,"box":{"x":116,"y":374,"width":769,"height":12}},{"id":"bdf41836-ff90-4837-825a-030daadb18eb","block_type":"box","text":"mutually exclusive. The same Service Organization, or one or more of its affiliates, may receive","page_number":236,"box":{"x":117,"y":389,"width":712,"height":12}},{"id":"3bfaabbb-4b57-4a01-a32c-d88045e5e727","block_type":"box","text":"payments under more than one category of Additional Payments. Such payments may be different for","page_number":236,"box":{"x":117,"y":405,"width":759,"height":12}},{"id":"b1f96793-b89c-462e-8570-6040a16f889f","block_type":"box","text":"different Service Organizations and for different types of Funds.","page_number":236,"box":{"x":116,"y":420,"width":477,"height":12}},{"id":"ccb09ede-8505-4209-894f-81b5a786d04d","block_type":"box","text":"A. Distribution and Marketing Support","page_number":236,"box":{"x":149,"y":448,"width":285,"height":13}},{"id":"f61150c9-fe9e-4a35-8191-765778e0dd04","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities.","page_number":236,"box":{"x":116,"y":470,"width":728,"height":12}},{"id":"a061a2ed-f55d-42b2-b566-a24b9ff5b07c","block_type":"box","text":"These payments may take the form of, among other things, “due diligence” payments for a Service","page_number":236,"box":{"x":116,"y":486,"width":737,"height":12}},{"id":"593e26b9-bb38-49a8-ab7d-c3acb1ea4e75","block_type":"box","text":"Organization’s examination of a Fund; payments for providing extra employee training and information","page_number":236,"box":{"x":116,"y":501,"width":763,"height":13}},{"id":"e0203619-bc28-478e-81a9-8b2b4b3ce0a1","block_type":"box","text":"relating to a Fund; fees for access (in some cases on a preferential basis) to the Service Organization’s","page_number":236,"box":{"x":117,"y":517,"width":771,"height":12}},{"id":"5de1e595-af12-40dc-86aa-7704c74e20c1","block_type":"box","text":"registered representatives, salespersons or other personnel, including at sales meetings and","page_number":236,"box":{"x":117,"y":533,"width":692,"height":12}},{"id":"b9eff468-9c36-4340-adb6-7f9a72261087","block_type":"box","text":"conferences; “shelf space” payments for placing the Fund on the Service Organization’s platform(s);","page_number":236,"box":{"x":116,"y":548,"width":747,"height":12}},{"id":"e012963f-a671-4557-9f50-2dc0613395a5","block_type":"box","text":"“listing” fees for the placing of the Fund on a dealer’s list (which may be a preferred or recommended","page_number":236,"box":{"x":116,"y":563,"width":754,"height":13}},{"id":"3bb80c9d-18cf-4d81-a635-52ee1647dc41","block_type":"box","text":"list) of mutual funds available for purchase by its Customers or in certain sales programs from time to","page_number":236,"box":{"x":117,"y":579,"width":755,"height":12}},{"id":"9472f89b-5938-4757-83d6-f8b79508e976","block_type":"box","text":"time; fees for providing assistance in promoting the sale of the Fund’s shares (which may include","page_number":236,"box":{"x":116,"y":594,"width":725,"height":13}},{"id":"1c35198d-6ea0-44bb-a069-e9afd9bde84a","block_type":"box","text":"promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":236,"box":{"x":117,"y":610,"width":761,"height":12}},{"id":"0c2cea72-6b74-4ae6-b830-d59803585542","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of","page_number":236,"box":{"x":116,"y":625,"width":728,"height":13}},{"id":"987cc3b6-3814-45f0-afc3-965d712ed221","block_type":"box","text":"share balances; transaction fees (also referred to as “ticket charges”); and payments for infrastructure","page_number":236,"box":{"x":116,"y":641,"width":761,"height":12}},{"id":"478beccb-ecf1-49aa-b0c6-c15a1c6ccf38","block_type":"box","text":"support. These payments normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by","page_number":236,"box":{"x":116,"y":656,"width":757,"height":13}},{"id":"9928f0f4-8ec4-48f7-b977-8f35170057cc","block_type":"box","text":"that Service Organization, and (b) 0.21% of the assets attributable to that Service Organization","page_number":236,"box":{"x":116,"y":672,"width":703,"height":12}},{"id":"e8f8046a-7b60-4c8b-be1e-160dc1ecde58","block_type":"box","text":"invested in a Fund.","page_number":236,"box":{"x":117,"y":688,"width":139,"height":9}},{"id":"e31311b0-1b56-4527-9ebc-43f764ae77d6","block_type":"box","text":"B. Shareholder Services","page_number":236,"box":{"x":150,"y":716,"width":181,"height":9}},{"id":"846863ad-6bf4-4426-84c0-f292448d9e66","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In","page_number":236,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"ab73a65e-f36e-4713-85ae-1d9966d69c50","block_type":"box","text":"these situations, a Fund may not maintain accounts in the name of the Customers and Service","page_number":236,"box":{"x":116,"y":753,"width":702,"height":12}},{"id":"1c318fd9-6c0a-49ec-93e9-85d0ac9ae855","block_type":"box","text":"Organizations may perform some of the functions for these Customers’ accounts that the Transfer","page_number":236,"box":{"x":116,"y":769,"width":728,"height":12}},{"id":"24301368-b7b4-4090-8410-ec1070940996","block_type":"box","text":"Agent would have performed if the accounts had been in the Customers’ names on the Fund’s books.","page_number":236,"box":{"x":116,"y":784,"width":753,"height":12}},{"id":"6ce67925-63ac-4be8-9a4b-645398cd8c34","block_type":"box","text":"Such services include sub-accounting services, shareholder servicing and transaction processing","page_number":236,"box":{"x":116,"y":800,"width":722,"height":12}},{"id":"4ab5b0b7-f8b6-49bd-9dcd-444e76f8a438","block_type":"box","text":"services and are sometimes referred to as “recordkeeping,” “sub-transfer agency,” “sub-accounting,”","page_number":236,"box":{"x":116,"y":815,"width":745,"height":12}},{"id":"4418719f-f14c-47c7-acd1-8e8f09ae33e8","block_type":"box","text":"“networking” and/or “administrative” services. Additional Payments may exceed amounts that would be","page_number":236,"box":{"x":116,"y":831,"width":768,"height":12}},{"id":"05edd3e0-82e8-400e-954e-d7269bd0f700","block_type":"box","text":"earned on these assets by the Transfer Agent for the performance of these or similar services. These","page_number":236,"box":{"x":116,"y":846,"width":758,"height":12}},{"id":"f5de8d6d-4f48-4fbc-818f-3f8db45421c1","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing","page_number":236,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"86932ee9-58ed-4876-9a2a-9eaf8b81622f","block_type":"box","text":"and transaction processing fees paid by a Fund, as applicable.","page_number":236,"box":{"x":116,"y":877,"width":470,"height":12}},{"id":"6abd31c9-bb47-438b-9921-908840367cdd","block_type":"box","text":"II-142","page_number":236,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"4dfaa317-8ecc-439f-a964-87d3d498c580","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":236,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"03cd679d-16b3-4a1b-924e-12c8859c636d","block_type":"box","text":"C. Data Provision and Technology Support","page_number":237,"box":{"x":151,"y":87,"width":322,"height":12}},{"id":"24286836-f777-4d1c-aa83-32d4e45a3202","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of certain","page_number":237,"box":{"x":117,"y":109,"width":710,"height":12}},{"id":"1e53265a-569a-4f2e-a170-75787f621cea","block_type":"box","text":"analytical or other data services relating to the Funds, such as statistical information regarding sales of","page_number":237,"box":{"x":116,"y":124,"width":767,"height":12}},{"id":"70056754-c1a6-4c04-91f3-0ee1b4440a7e","block_type":"box","text":"the Funds, or technology support. Such Additional Payments are generally made as a fixed dollar","page_number":237,"box":{"x":116,"y":140,"width":728,"height":12}},{"id":"1544c840-a4a9-45fa-8d6f-99d10207d38b","block_type":"box","text":"amount, and not based on assets or sales.","page_number":237,"box":{"x":116,"y":155,"width":322,"height":11}},{"id":"84ce4771-8bbb-4d1c-815b-a0f37ad14094","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":237,"box":{"x":150,"y":183,"width":427,"height":12}},{"id":"7064f11f-9bd3-4f11-bca5-0735f54a6865","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the","page_number":237,"box":{"x":116,"y":205,"width":746,"height":12}},{"id":"d10c9f29-edad-4035-9ae1-64979995c90a","block_type":"box","text":"Service Organization’s affiliates, may be receiving one or more types of Additional Payments. This list","page_number":237,"box":{"x":116,"y":220,"width":759,"height":12}},{"id":"fb301a51-8be1-4153-95d4-46249c53da7e","block_type":"box","text":"may change over time, and BlackRock may pay Service Organizations or their affiliates additional","page_number":237,"box":{"x":117,"y":236,"width":729,"height":12}},{"id":"3c97191e-a347-43b6-b216-41b2907dc537","block_type":"box","text":"types of Additional Payments in the future. Please contact your Service Organization to determine","page_number":237,"box":{"x":116,"y":251,"width":731,"height":12}},{"id":"a4b8a6b9-7f80-4262-83c2-8b27e665de3e","block_type":"box","text":"whether it or its affiliate currently may be receiving such payments and to obtain further information","page_number":237,"box":{"x":116,"y":267,"width":739,"height":12}},{"id":"580e6afb-c04f-4050-9bb9-9f8c8a4ec5e4","block_type":"box","text":"regarding any such payments.","page_number":237,"box":{"x":117,"y":282,"width":229,"height":12}},{"id":"e8ece357-e810-48ee-805a-de5ea1343c50","block_type":"box","text":"&Partners","page_number":237,"box":{"x":116,"y":304,"width":79,"height":10}},{"id":"f04f444e-408f-4055-9f16-d74ecbd4ae1b","block_type":"box","text":"AccuTech Systems Corporation","page_number":237,"box":{"x":116,"y":320,"width":241,"height":12}},{"id":"db194ebe-514a-41a8-b652-5e4952366518","block_type":"box","text":"ADP Broker-Dealer, 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In an in-kind redemption, a pro rata portion of a Fund’s portfolio holdings will generally be","page_number":241,"box":{"x":116,"y":180,"width":730,"height":12}},{"id":"4cc69b76-0d26-42fe-b0e3-e144b51967fc","block_type":"box","text":"distributed to the redeeming shareholder, but an Index Fund may, under certain circumstances, deviate","page_number":241,"box":{"x":116,"y":196,"width":772,"height":12}},{"id":"e48ca655-c6b1-4f8c-a7b2-7d3f97360f7c","block_type":"box","text":"from pro rata redemption if the securities and other assets to be distributed are deemed to be a fair","page_number":241,"box":{"x":116,"y":211,"width":739,"height":12}},{"id":"79301075-2234-44ce-97d3-80984af6f468","block_type":"box","text":"representation of portfolio holdings and the interests of the remaining shareholders in the Index Fund","page_number":241,"box":{"x":117,"y":227,"width":753,"height":12}},{"id":"45d0abed-1842-4b04-9843-6c34d785f9a9","block_type":"box","text":"are not diluted. Each Fund has elected, however, to be governed by Rule 18f-1 under the Investment","page_number":241,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"7d34112b-09e0-4ce7-980e-e35eaf452d23","block_type":"box","text":"Company Act so that the Fund is obligated to redeem its shares solely in cash up to the lesser of","page_number":241,"box":{"x":117,"y":258,"width":722,"height":12}},{"id":"e4f33827-86fc-4e3f-9042-d95b19853b09","block_type":"box","text":"$250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. The redemption","page_number":241,"box":{"x":116,"y":272,"width":761,"height":13}},{"id":"a1173ee3-81e5-4e81-86cf-caa9634b0829","block_type":"box","text":"price is the NAV per share next determined after the initial receipt of proper notice of redemption. The","page_number":241,"box":{"x":117,"y":289,"width":758,"height":12}},{"id":"c7e778d1-fc7b-433e-a678-167d8dca659b","block_type":"box","text":"value of shares of each Fund at the time of redemption may be more or less than your cost at the time","page_number":241,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"32e00f62-f369-48b4-9bb3-5b5ef5a6d9ba","block_type":"box","text":"of purchase, depending in part on the market value of the securities held by the Fund at such time.","page_number":241,"box":{"x":116,"y":320,"width":737,"height":12}},{"id":"c5ca1ecc-49e6-4439-b9ba-14a387712043","block_type":"box","text":"Except for any CDSC that may be applicable, there will be no redemption charge if your redemption","page_number":241,"box":{"x":117,"y":335,"width":743,"height":12}},{"id":"ecede206-f21a-4a4a-9d73-4ae9dce9d8ed","block_type":"box","text":"request is sent directly to the Transfer Agent. If you are liquidating your holdings you will receive all","page_number":241,"box":{"x":117,"y":351,"width":739,"height":12}},{"id":"766190c5-a082-4c2c-938e-0f6f5bd8669f","block_type":"box","text":"dividends reinvested through the date of redemption.","page_number":241,"box":{"x":116,"y":366,"width":397,"height":12}},{"id":"6364be65-1196-48ef-8436-a12d7342f23e","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more","page_number":241,"box":{"x":116,"y":397,"width":764,"height":12}},{"id":"3d0d4b0a-aa56-4b5e-b0bb-bcf19405be13","block_type":"box","text":"than seven days only (i) for any period during which trading on the NYSE is restricted as determined by","page_number":241,"box":{"x":116,"y":413,"width":772,"height":12}},{"id":"298e1f4a-eb98-4cf7-be34-2fb5f83180dc","block_type":"box","text":"the Commission or during which the NYSE is closed (other than customary weekend and holiday","page_number":241,"box":{"x":116,"y":428,"width":724,"height":12}},{"id":"2a567a90-33fc-48c9-83b7-9b26ee7e57c3","block_type":"box","text":"closings), (ii) for any period during which an emergency exists, as defined by the Commission, as a","page_number":241,"box":{"x":116,"y":444,"width":741,"height":12}},{"id":"c7b7a034-c2a0-4dae-a273-00620f6a6e4d","block_type":"box","text":"result of which disposal of portfolio securities or determination of the NAV of a Fund is not reasonably","page_number":241,"box":{"x":117,"y":459,"width":757,"height":12}},{"id":"32adc972-7296-4375-9dc7-4e6b859fe3ac","block_type":"box","text":"practicable, or (iii) for such other periods as the Commission may by order permit for the protection of","page_number":241,"box":{"x":117,"y":475,"width":756,"height":12}},{"id":"a4a04f03-f0dc-496f-8450-c767c4befb75","block_type":"box","text":"shareholders of the Fund. (A Fund may also suspend or postpone the recordation of the transfer of its","page_number":241,"box":{"x":116,"y":490,"width":761,"height":12}},{"id":"eacb9ae5-3868-41d9-8f6a-7a304558955b","block_type":"box","text":"shares upon the occurrence of any of the foregoing conditions.)","page_number":241,"box":{"x":116,"y":506,"width":476,"height":12}},{"id":"48293a35-5726-4797-a728-304b389288d3","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint","page_number":241,"box":{"x":117,"y":537,"width":703,"height":12}},{"id":"91b5fc4c-59f3-4838-8869-6de4d88808b7","block_type":"box","text":"committed line of credit with a syndicate of banks that is intended to provide the Fund with a temporary","page_number":241,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"cfdf2024-0ad8-4a2f-be07-8f3829b44bd2","block_type":"box","text":"source of cash to be used to meet redemption requests from shareholders in extraordinary or","page_number":241,"box":{"x":116,"y":568,"width":697,"height":12}},{"id":"ce73be87-f726-42ae-8a6a-45064d32caa4","block_type":"box","text":"emergency circumstances.","page_number":241,"box":{"x":116,"y":583,"width":205,"height":12}},{"id":"3440680e-55f2-4d9d-a000-81e24f22a611","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of","page_number":241,"box":{"x":117,"y":614,"width":766,"height":12}},{"id":"8a46e32b-6d90-4769-b0b7-3dcb09545822","block_type":"box","text":"the failure of a shareholder to make full payment for shares purchased by the shareholder or to collect","page_number":241,"box":{"x":116,"y":630,"width":763,"height":12}},{"id":"63bed98c-753d-46c1-9799-3efe7088c997","block_type":"box","text":"any charge relating to a transaction effected for the benefit of a shareholder. Each Fund reserves the","page_number":241,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"00b2e238-cf46-4508-abb8-1507ea269d44","block_type":"box","text":"express right to redeem shares of the Fund involuntarily at any time if the Fund’s Board of Directors","page_number":241,"box":{"x":116,"y":661,"width":738,"height":12}},{"id":"525a32f1-fccc-4adc-917d-334ffd7899ee","block_type":"box","text":"determines, in its sole discretion, that failure to do so may have adverse consequences to the holders","page_number":241,"box":{"x":116,"y":676,"width":753,"height":12}},{"id":"8b697d85-4b0d-4c72-8990-ddc6a6358471","block_type":"box","text":"of shares in the Fund. Upon such redemption the holders of shares so redeemed shall have no further","page_number":241,"box":{"x":116,"y":692,"width":759,"height":12}},{"id":"77be8fba-af51-482e-9e71-aac4bd9e8951","block_type":"box","text":"right with respect thereto other than to receive payment of the redemption price.","page_number":241,"box":{"x":117,"y":707,"width":591,"height":12}},{"id":"0eca7b14-d8aa-4a27-9a6f-ab8a5755decc","block_type":"box","text":"Redemption","page_number":241,"box":{"x":117,"y":738,"width":95,"height":12}},{"id":"d71ce60c-d278-4406-be89-f9c6a2c1e580","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":241,"box":{"x":117,"y":761,"width":504,"height":12}},{"id":"6414b161-967e-4397-bdf0-0958281fe87b","block_type":"box","text":"Redeem by Telephone","page_number":241,"box":{"x":117,"y":785,"width":177,"height":12}},{"id":"39101651-e6c1-4626-bb19-e6b1b0a389af","block_type":"box","text":": You may sell Investor Shares, excluding Investor P Shares, held at","page_number":241,"box":{"x":296,"y":785,"width":505,"height":12}},{"id":"4857bbd7-758d-461d-b002-addd8ce4f44c","block_type":"box","text":"BlackRock by telephone request if certain conditions are met and if the amount being sold is less than","page_number":241,"box":{"x":117,"y":800,"width":754,"height":12}},{"id":"da59586a-a020-46c6-91de-d298917d36bc","block_type":"box","text":"(i) $100,000 for payments by check or (ii) $250,000 for payments through the Automated Clearing","page_number":241,"box":{"x":117,"y":815,"width":724,"height":13}},{"id":"0dcb7b0d-4d1a-4ad1-898c-d02c11c99b9b","block_type":"box","text":"House Network (“ACH”) or wire transfer. Certain redemption requests, such as those in excess of","page_number":241,"box":{"x":117,"y":831,"width":727,"height":12}},{"id":"6e38daa0-e35c-4540-80f5-3d97b5b7fd75","block_type":"box","text":"these amounts, and those where (i) the Fund does not have verified banking information on file; or","page_number":241,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"3155e0fb-9802-4f5d-8dcd-b716ae455b4b","block_type":"box","text":"(ii) the proceeds are not paid to the record owner at the record address, must be in writing with a","page_number":241,"box":{"x":117,"y":862,"width":720,"height":12}},{"id":"abec811c-44ae-4f53-9ed8-2a9f1f7cd1d4","block_type":"box","text":"medallion signature guarantee provided by any “eligible guarantor institution” as defined in","page_number":241,"box":{"x":117,"y":878,"width":674,"height":12}},{"id":"4f7fb815-7bac-4260-afb0-397d772dd366","block_type":"box","text":"II-147","page_number":241,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"46190d10-f24d-427a-b96f-8c4c14a26c1c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":241,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"58ecb470-9b94-4f72-81b3-cf27750a08a2","block_type":"box","text":"Rule 17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and","page_number":242,"box":{"x":117,"y":87,"width":756,"height":12}},{"id":"2388cf78-f797-4ad3-bd4f-2d0dd22f3838","block_type":"box","text":"validity may be verified by the Transfer Agent through the use of industry publications. For Institutional","page_number":242,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"3a142b2c-48c1-4ab0-912a-6051436d4088","block_type":"box","text":"Shares, certain redemption requests may require written instructions with a medallion signature","page_number":242,"box":{"x":116,"y":118,"width":713,"height":12}},{"id":"63aebd1c-f771-4d2b-a16b-b1d2b5199f3e","block_type":"box","text":"guarantee. Call (800) 441-7762 for details. You can obtain a medallion signature guarantee stamp from","page_number":242,"box":{"x":116,"y":134,"width":772,"height":12}},{"id":"10fd7be4-068b-4b21-84ba-24336db366cd","block_type":"box","text":"a bank, securities dealer, securities broker, credit union, savings and loan association, national","page_number":242,"box":{"x":116,"y":149,"width":709,"height":12}},{"id":"1b0def45-a592-4964-a419-c0250816cd43","block_type":"box","text":"securities exchange or registered securities association. The three recognized medallion programs are","page_number":242,"box":{"x":116,"y":165,"width":767,"height":12}},{"id":"c2b71455-f223-4aa1-ba6e-ba4ab904b208","block_type":"box","text":"Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New York","page_number":242,"box":{"x":116,"y":180,"width":736,"height":12}},{"id":"d70cf301-1c6b-4c6e-8ba5-347157fa3985","block_type":"box","text":"Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of","page_number":242,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"d9e688e2-8a4a-42a9-b3fc-afe915728602","block_type":"box","text":"these programs will not be accepted. A notary public seal will not be acceptable. Generally, a properly","page_number":242,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"93286fe8-a8da-44b9-a626-55fc01ace77e","block_type":"box","text":"signed written request with any required signature guarantee is all that is required for a redemption. In","page_number":242,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"704711c3-1b3c-462d-8701-461e075e8d45","block_type":"box","text":"some cases, however, other documents may be necessary. Additional documentary evidence of","page_number":242,"box":{"x":116,"y":242,"width":719,"height":12}},{"id":"ea551f93-ba63-4d6e-8295-15e695e9ced9","block_type":"box","text":"authority is required by the Transfer Agent in the event redemption is requested by a corporation,","page_number":242,"box":{"x":116,"y":258,"width":726,"height":12}},{"id":"2c59d5b8-8750-4498-9606-7805485bdfe6","block_type":"box","text":"partnership, trust, fiduciary, executor or administrator.","page_number":242,"box":{"x":117,"y":273,"width":402,"height":12}},{"id":"17727ce5-59c7-479d-9a6b-95ceda49b623","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the","page_number":242,"box":{"x":117,"y":304,"width":769,"height":12}},{"id":"0d826fd3-6748-4ba6-96fd-d22c7a2bb41f","block_type":"box","text":"Fund may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its","page_number":242,"box":{"x":117,"y":320,"width":709,"height":12}},{"id":"dddcecbd-5af4-4c0b-a1cf-b89746ce90a0","block_type":"box","text":"Administrators and the Distributor will employ reasonable procedures to confirm that instructions","page_number":242,"box":{"x":116,"y":335,"width":719,"height":12}},{"id":"6da2e90e-a32c-4e00-86ff-aefed120f39c","block_type":"box","text":"communicated by telephone are genuine. Telephone redemption requests will not be honored if: (i) the","page_number":242,"box":{"x":116,"y":351,"width":767,"height":12}},{"id":"6204644a-9510-4661-a85b-2416834641bc","block_type":"box","text":"accountholder is deceased, (ii) the proceeds are to be sent to someone other than the shareholder of","page_number":242,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"7ec0f2fc-105a-4272-b9ac-6ec0c77938d7","block_type":"box","text":"record, (iii) a Fund does not have verified information on file, (iv) the request is by an individual other","page_number":242,"box":{"x":117,"y":382,"width":749,"height":12}},{"id":"b0ef5a58-d859-47e2-aab9-d2e3fc88651a","block_type":"box","text":"than the accountholder of record, (v) the account is held by joint tenants who are divorced, (vi) the","page_number":242,"box":{"x":116,"y":397,"width":733,"height":12}},{"id":"7bdda822-632b-437d-8d32-a4e905dc4dcd","block_type":"box","text":"address on the account has changed within the last 30 days or share certificates have been issued on","page_number":242,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"efd9a1c7-69cd-46a2-adeb-f35ef0c0d5f7","block_type":"box","text":"the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the","page_number":242,"box":{"x":116,"y":428,"width":752,"height":12}},{"id":"aee9ca66-4f4a-4533-80e7-dc0a9bb4d902","block_type":"box","text":"name and address registered on the account and the social security number registered on the account.","page_number":242,"box":{"x":117,"y":444,"width":770,"height":12}},{"id":"346dd9b6-965a-4142-9594-e2dc365daa6a","block_type":"box","text":"The Fund and its service providers will not be liable for any loss, liability, cost or expense for acting","page_number":242,"box":{"x":116,"y":459,"width":739,"height":12}},{"id":"92b038cc-ebbb-4f7a-a470-6943642d43ab","block_type":"box","text":"upon telephone instructions that are reasonably believed to be genuine in accordance with such","page_number":242,"box":{"x":117,"y":475,"width":716,"height":12}},{"id":"5c8177c1-5242-4ded-8fd7-240f788dd144","block_type":"box","text":"procedures. Before telephone requests will be honored, signature approval from all shareholders of","page_number":242,"box":{"x":117,"y":490,"width":741,"height":12}},{"id":"50d21ffc-e759-4d93-931f-1864019543f0","block_type":"box","text":"record on the account must be obtained. The Fund may refuse a telephone redemption request if it","page_number":242,"box":{"x":117,"y":506,"width":738,"height":12}},{"id":"77fb8995-2773-46f2-b973-1e5907b311b8","block_type":"box","text":"believes it is advisable to do so. During periods of substantial economic or market change, telephone","page_number":242,"box":{"x":117,"y":521,"width":754,"height":12}},{"id":"fe2fbb28-3114-4b50-8310-190391e9e41f","block_type":"box","text":"redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":242,"box":{"x":117,"y":537,"width":691,"height":12}},{"id":"202b67cc-b720-44ad-a25f-84530ba5d7b8","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day","page_number":242,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"1f3cd6d8-b2a4-4105-bf84-ce18aecd074d","block_type":"box","text":"will be priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern","page_number":242,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"95c4fd3f-b261-4e70-9d9d-418b08d6f237","block_type":"box","text":"time) on a business day, payment for redeemed Institutional Shares will normally be wired in Federal","page_number":242,"box":{"x":116,"y":599,"width":753,"height":12}},{"id":"3a85c754-7121-4295-a819-cec8f776c2cd","block_type":"box","text":"Funds on the next business day. If the Federal Reserve Bank of Philadelphia is not open on the","page_number":242,"box":{"x":117,"y":614,"width":713,"height":12}},{"id":"2fd90a81-e919-4b18-a9f9-df77723660b4","block_type":"box","text":"business day following receipt of the redemption order, the redemption order will be accepted and","page_number":242,"box":{"x":117,"y":630,"width":729,"height":12}},{"id":"43fa79cb-6fe2-47ab-8a53-140e587b3c1a","block_type":"box","text":"processed the next succeeding business day when the Federal Reserve Bank of Philadelphia is open,","page_number":242,"box":{"x":117,"y":645,"width":762,"height":12}},{"id":"3f935606-a46f-47bf-93fa-ce8059f4b614","block_type":"box","text":"provided that the Fund’s custodian is also open for business.","page_number":242,"box":{"x":117,"y":661,"width":449,"height":12}},{"id":"f36f286e-e769-4b84-a7c2-8a93f77740c5","block_type":"box","text":"Redeem by VRU","page_number":242,"box":{"x":117,"y":692,"width":127,"height":12}},{"id":"955e9183-a1fb-4949-820c-da7e9be74d7c","block_type":"box","text":": Investor class shares, excluding Investor P Shares, may also be redeemed by use","page_number":242,"box":{"x":247,"y":692,"width":620,"height":12}},{"id":"c32d6c87-990a-46de-9042-be7ea8498206","block_type":"box","text":"of a Fund’s automated voice response unit service (“VRU”). Payment for Investor class shares","page_number":242,"box":{"x":116,"y":707,"width":700,"height":12}},{"id":"459e2e98-ef84-475b-ab59-7d8b92d5b48f","block_type":"box","text":"redeemed by VRU may be made for non-retirement accounts in amounts up to $25,000, either through","page_number":242,"box":{"x":117,"y":722,"width":761,"height":13}},{"id":"80788109-1adb-47c4-aa55-c06b38dfa280","block_type":"box","text":"check, ACH or wire.","page_number":242,"box":{"x":116,"y":738,"width":147,"height":11}},{"id":"9dbc47f8-894d-429d-901e-8753bc0fe6c0","block_type":"box","text":"Redeem by Internet:","page_number":242,"box":{"x":117,"y":769,"width":159,"height":12}},{"id":"c52cc971-d64b-4395-866d-1c915f855752","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging","page_number":242,"box":{"x":283,"y":769,"width":595,"height":12}},{"id":"de94e5be-a4e8-4708-930f-93a44c2f4448","block_type":"box","text":"onto the BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent","page_number":242,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"b3e73835-8d7a-4db3-bc16-f02a9cfc319c","block_type":"box","text":"via check, ACH or wire to the bank account of record. Payment for shares redeemed by Internet may","page_number":242,"box":{"x":116,"y":800,"width":749,"height":12}},{"id":"9bc10f93-d10f-4696-a6cd-5a0b40380b35","block_type":"box","text":"be made for non-retirement accounts up to $100,000 per account per day, either through check, ACH","page_number":242,"box":{"x":117,"y":815,"width":751,"height":13}},{"id":"c6b54e69-df9b-4dfc-9b9a-7572007bdd2d","block_type":"box","text":"or wire. Different maximums may apply to certain institutional investors.","page_number":242,"box":{"x":116,"y":831,"width":535,"height":12}},{"id":"4db50911-205a-4c68-932e-4a043ae8bba2","block_type":"box","text":"Redeem in Writing:","page_number":242,"box":{"x":117,"y":862,"width":157,"height":12}},{"id":"bf1302b3-6763-424b-8156-e2eb6d51e452","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without","page_number":242,"box":{"x":275,"y":862,"width":599,"height":12}},{"id":"e9a362d5-ddbd-4a26-a03f-97e1267adc0f","block_type":"box","text":"charge by writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption","page_number":242,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"75418ffd-def2-4120-905b-3b28a44aed99","block_type":"box","text":"II-148","page_number":242,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"baa96c39-cad5-440d-8a20-22934ab138d7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":242,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"20dc4732-d256-4e1a-bd68-40a27d30d346","block_type":"box","text":"requests delivered other than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn","page_number":243,"box":{"x":117,"y":87,"width":729,"height":12}},{"id":"3d46c261-ce7f-4b4b-a6c4-8c2764da7d37","block_type":"box","text":"Avenue, Suite 102, Pittsburgh, Pennsylvania 15222. If you hold share certificates issued by your Fund,","page_number":243,"box":{"x":116,"y":102,"width":768,"height":13}},{"id":"86ca13f8-6f1c-47ec-b928-bfc3a14ff54b","block_type":"box","text":"the letter must be accompanied by certificates for the shares. All shareholders on the account must","page_number":243,"box":{"x":116,"y":118,"width":741,"height":12}},{"id":"bc1d4ac6-5c19-404f-87fe-c404abc4362c","block_type":"box","text":"sign the letter. A medallion signature guarantee will generally be required but may be waived in certain","page_number":243,"box":{"x":116,"y":134,"width":766,"height":12}},{"id":"aeabdbdf-f471-4dd4-9e0d-78b23a777763","block_type":"box","text":"limited circumstances. You can obtain a medallion signature guarantee stamp from a bank, securities","page_number":243,"box":{"x":117,"y":149,"width":756,"height":12}},{"id":"1a870370-7c75-405b-9917-f317ad578ab7","block_type":"box","text":"dealer, securities broker, credit union, savings and loan association, national securities exchange or","page_number":243,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"f5d90106-5826-4ee2-87d6-2c6493e5be5b","block_type":"box","text":"registered securities association. A notary public seal will not be acceptable. If you hold stock","page_number":243,"box":{"x":117,"y":180,"width":696,"height":12}},{"id":"0a908545-606c-48b1-bf95-db90968cbb51","block_type":"box","text":"certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check,","page_number":243,"box":{"x":116,"y":196,"width":749,"height":12}},{"id":"f9b10499-1156-4271-a79a-0c8f94be1d05","block_type":"box","text":"ACH or wire to the bank account of record.","page_number":243,"box":{"x":116,"y":211,"width":323,"height":10}},{"id":"03e28fe7-7f34-4a7c-88d7-83604eb11380","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock","page_number":243,"box":{"x":116,"y":239,"width":754,"height":12}},{"id":"2838ab28-f048-4b93-aa05-d52fba2fca3e","block_type":"box","text":"Shares may be made in the manner and amounts described in the Prospectuses.","page_number":243,"box":{"x":117,"y":254,"width":608,"height":13}},{"id":"1cf8cc3c-2c08-4fb8-9d1e-76ad5b47e91c","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":243,"box":{"x":116,"y":282,"width":707,"height":12}},{"id":"4c1aea47-f5d2-4282-9ce4-b456d9ebfe29","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one","page_number":243,"box":{"x":117,"y":310,"width":740,"height":12}},{"id":"3b3f7e2c-7d2d-4905-b512-15efa7ac29bf","block_type":"box","text":"business day of receipt of the proper notice of redemption. A Fund may delay the mailing of a","page_number":243,"box":{"x":117,"y":326,"width":697,"height":12}},{"id":"f16094be-51a5-4d24-bc1e-57f66024f4fb","block_type":"box","text":"redemption check until good payment (that is, cash, Federal funds or certified check drawn on a U.S.","page_number":243,"box":{"x":117,"y":341,"width":753,"height":12}},{"id":"4f6b46ce-0776-45af-8cf0-c60792e7659c","block_type":"box","text":"bank) has been collected for the purchase of Fund shares, which delay will usually not exceed 10","page_number":243,"box":{"x":117,"y":357,"width":726,"height":12}},{"id":"e13b3315-8e2a-4ebb-93c1-c2ba9616536c","block_type":"box","text":"days. If your account is held directly with the Transfer Agent and contains a fractional share balance","page_number":243,"box":{"x":116,"y":372,"width":747,"height":12}},{"id":"61d13888-606d-4b6f-9e96-90c44c44011a","block_type":"box","text":"following a redemption, the fractional share balance will be automatically redeemed by the Fund.","page_number":243,"box":{"x":116,"y":388,"width":722,"height":12}},{"id":"6c6dc097-6c7d-4444-8b27-3a94f7acb1a0","block_type":"box","text":"Note on Low Balance Accounts.","page_number":243,"box":{"x":117,"y":416,"width":242,"height":9}},{"id":"3d74948f-fafd-4801-9945-5013a912787d","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":243,"box":{"x":360,"y":416,"width":527,"height":12}},{"id":"b777094c-c072-4a71-b3bd-be2507ff5988","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account","page_number":243,"box":{"x":117,"y":430,"width":735,"height":13}},{"id":"af0d7f88-a1a1-4959-94b6-48f45f3d5d9f","block_type":"box","text":"(“Fund Minimum”), and may redeem the shares in your account if the NAV of those shares in your","page_number":243,"box":{"x":117,"y":447,"width":731,"height":12}},{"id":"b69de9e3-5c65-46ab-b7ef-5c1f04263a10","block_type":"box","text":"account falls below $500 for any reason, including market fluctuation.","page_number":243,"box":{"x":116,"y":461,"width":519,"height":13}},{"id":"ac2d1a41-0538-42a3-a779-188abca0a505","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund","page_number":243,"box":{"x":116,"y":490,"width":727,"height":12}},{"id":"3faa8cca-1add-4fc7-bf3d-8175cc93d5f4","block_type":"box","text":"makes any involuntary redemption. This notification will provide you with a 90 calendar day period to","page_number":243,"box":{"x":117,"y":506,"width":749,"height":12}},{"id":"c8200a62-115b-4341-9e65-d3f4e1f8f488","block_type":"box","text":"make an additional investment in order to bring the value of your account to at least $500 before the","page_number":243,"box":{"x":117,"y":520,"width":747,"height":13}},{"id":"0550f35b-8897-494a-aeef-5641d3a8f397","block_type":"box","text":"Fund makes an involuntary redemption. This involuntary redemption will not charge any deferred sales","page_number":243,"box":{"x":117,"y":537,"width":766,"height":12}},{"id":"aaa3cc69-6172-4f0e-bbe7-7e2d43cfd8a7","block_type":"box","text":"charge, and may not apply to accounts of certain employer-sponsored retirement plans (not including","page_number":243,"box":{"x":116,"y":552,"width":756,"height":12}},{"id":"df8198f4-ae34-4a19-801d-d94c27663caf","block_type":"box","text":"IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your financial","page_number":243,"box":{"x":117,"y":568,"width":763,"height":12}},{"id":"cf5ccfbe-c6b6-490c-8481-e1f89aad448f","block_type":"box","text":"intermediary.","page_number":243,"box":{"x":117,"y":583,"width":101,"height":12}},{"id":"cef9a94b-3153-4b2e-a464-8243cbc5fd22","block_type":"box","text":"Repurchase","page_number":243,"box":{"x":117,"y":611,"width":100,"height":12}},{"id":"7eac06d2-65c1-4908-8aa6-52c4e66aec04","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers.","page_number":243,"box":{"x":116,"y":633,"width":729,"height":12}},{"id":"de6fcd1b-4978-4bde-b336-e3deb6b85e8e","block_type":"box","text":"Shares will be priced at the NAV of the Fund next determined after receipt of the repurchase order by a","page_number":243,"box":{"x":116,"y":648,"width":771,"height":12}},{"id":"f2d27547-d70b-4a4d-9058-28b0db539a31","block_type":"box","text":"Selling Dealer that has been authorized by the Distributor by contract to accept such orders. As to","page_number":243,"box":{"x":116,"y":664,"width":726,"height":12}},{"id":"ac3432e5-7464-4f3b-88db-f1e0d7927341","block_type":"box","text":"repurchase orders received by Selling Dealers prior to the close of business on the NYSE (generally,","page_number":243,"box":{"x":117,"y":679,"width":746,"height":12}},{"id":"6bf57b76-416e-4b4e-8008-023725f58253","block_type":"box","text":"the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed, which includes orders","page_number":243,"box":{"x":116,"y":695,"width":726,"height":12}},{"id":"efced945-a7db-47c8-afc8-7fdd6d426f57","block_type":"box","text":"received after the close of business on the previous day, the repurchase price is the NAV determined","page_number":243,"box":{"x":117,"y":710,"width":749,"height":12}},{"id":"f3cae2ee-e9a9-417e-a434-357a48303ac3","block_type":"box","text":"as of the close of business on the NYSE on that day. If the orders for repurchase are not received by","page_number":243,"box":{"x":116,"y":726,"width":749,"height":12}},{"id":"00d51171-b26e-4bc3-9914-2fd74a233561","block_type":"box","text":"the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":243,"box":{"x":116,"y":741,"width":760,"height":12}},{"id":"53426596-34f8-454f-8597-87d89c1a6409","block_type":"box","text":"next business day.","page_number":243,"box":{"x":117,"y":757,"width":137,"height":12}},{"id":"3da8fddb-8dc9-4877-8583-1d0a0b7879d5","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund","page_number":243,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"7235e7dd-f1ea-4901-9090-2f303fb3457d","block_type":"box","text":"(other than any applicable CDSC or redemption fee). However, Selling Dealers may charge a","page_number":243,"box":{"x":117,"y":800,"width":691,"height":12}},{"id":"6752f8a7-3061-4120-9309-647e67998df7","block_type":"box","text":"processing fee in connection with such transactions. In addition, securities firms that do not have","page_number":243,"box":{"x":117,"y":816,"width":716,"height":12}},{"id":"1d859137-1fa3-4519-ba79-8ae34672139b","block_type":"box","text":"selected dealer agreements with the Distributor may impose a transaction charge for transmitting the","page_number":243,"box":{"x":116,"y":831,"width":753,"height":12}},{"id":"e79ccee2-1940-4acb-9dcf-13e363132917","block_type":"box","text":"notice of repurchase to the Fund. Each Fund reserves the right to reject any order for repurchase. A","page_number":243,"box":{"x":117,"y":847,"width":746,"height":12}},{"id":"9881f7a5-a261-41ae-9b0c-ca850a19a17a","block_type":"box","text":"shareholder whose order for repurchase is rejected by a Fund, however, may redeem shares as set","page_number":243,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"6d926ad6-942b-47ee-b9cb-d6bd3f547cc7","block_type":"box","text":"out above.","page_number":243,"box":{"x":116,"y":878,"width":83,"height":9}},{"id":"9bdcf00e-2034-4c40-af61-64df19cafb1f","block_type":"box","text":"II-149","page_number":243,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d9e3a462-2185-4a9b-a1fe-c7cf7b0ceeba","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":243,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"de40aec4-b6e2-424d-8af4-c54bacb50fc9","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":244,"box":{"x":117,"y":87,"width":484,"height":12}},{"id":"f8a0b33d-f2ed-4186-a6e1-52b0a2ad569d","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable,","page_number":244,"box":{"x":117,"y":110,"width":691,"height":12}},{"id":"521de716-dfa1-46b8-8ca9-97fbb0759c95","block_type":"box","text":"shareholders may reinvest all or a portion of their redemption proceeds (after paying any applicable","page_number":244,"box":{"x":116,"y":126,"width":743,"height":12}},{"id":"a2db75ec-f85c-4b80-b146-e66f34583b8e","block_type":"box","text":"CDSC) in Investor A or Investor P Shares of the same or another BlackRock fund without paying a","page_number":244,"box":{"x":117,"y":141,"width":735,"height":12}},{"id":"ed58a1f0-7d38-4869-acb3-7359f08c7f00","block_type":"box","text":"front-end sales charge. This right may be exercised within 90 days of the redemption, provided that the","page_number":244,"box":{"x":116,"y":157,"width":769,"height":12}},{"id":"48be9b79-f716-4d44-b1e8-d916d35f415f","block_type":"box","text":"Investor A or Investor P Shares, as applicable, of that fund is currently open to new investors or the","page_number":244,"box":{"x":117,"y":172,"width":741,"height":12}},{"id":"caf5e008-0144-42af-9e72-395a1197178a","block_type":"box","text":"shareholder has a current account in that closed fund. Shares will be purchased at the NAV calculated","page_number":244,"box":{"x":116,"y":188,"width":765,"height":12}},{"id":"57a03656-289b-4778-b80d-f23cd69192b2","block_type":"box","text":"at the close of trading on the day the request is received in good order. To exercise this privilege, the","page_number":244,"box":{"x":116,"y":203,"width":754,"height":12}},{"id":"09c289a4-9812-4c11-a377-b3e95dfb49d0","block_type":"box","text":"Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":244,"box":{"x":116,"y":219,"width":714,"height":12}},{"id":"3d084299-3047-41e6-952a-234c296de7dd","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the","page_number":244,"box":{"x":117,"y":234,"width":767,"height":12}},{"id":"3f5a88a4-eac8-453f-8ac4-e12ed4e2753e","block_type":"box","text":"tax consequences of exercising this reinstatement privilege.","page_number":244,"box":{"x":116,"y":250,"width":449,"height":12}},{"id":"30650cbc-df6c-459a-87b3-436c3fa4c179","block_type":"box","text":"S","page_number":244,"box":{"x":409,"y":296,"width":9,"height":10}},{"id":"55b259e3-d833-4749-93e1-6a293d600b1f","block_type":"box","text":"HAREHOLDER","page_number":244,"box":{"x":420,"y":299,"width":95,"height":7}},{"id":"75530aae-2755-487d-b8ef-f88096c8a04f","block_type":"box","text":"S","page_number":244,"box":{"x":515,"y":296,"width":16,"height":10}},{"id":"75cadc96-eb11-4645-88ef-bc65ca01b153","block_type":"box","text":"ERVICES","page_number":244,"box":{"x":532,"y":299,"width":59,"height":7}},{"id":"64a728fb-cae9-4168-8a98-5efc63149fe5","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to","page_number":244,"box":{"x":117,"y":327,"width":714,"height":12}},{"id":"9663f6d5-0fa7-4276-a213-7b5b1722f65f","block_type":"box","text":"facilitate investment in its shares. You can obtain more information about these services from each","page_number":244,"box":{"x":116,"y":343,"width":738,"height":9}},{"id":"d7e2a2d0-aebb-4970-b25d-719a0386e1e3","block_type":"box","text":"Fund by calling the telephone number on the cover page, or from the Distributor, your financial adviser,","page_number":244,"box":{"x":117,"y":358,"width":769,"height":12}},{"id":"365995ed-1c88-4883-8865-9f222c916824","block_type":"box","text":"your selected securities dealer or other financial intermediary. Certain of these services are available","page_number":244,"box":{"x":116,"y":374,"width":753,"height":12}},{"id":"796180b5-a060-4628-adad-f67a81f4008e","block_type":"box","text":"only to U.S. investors.","page_number":244,"box":{"x":116,"y":389,"width":168,"height":12}},{"id":"d88ff4d4-4ae0-473c-a57e-ac76743c3f1b","block_type":"box","text":"Investment Account","page_number":244,"box":{"x":117,"y":420,"width":164,"height":10}},{"id":"ec5f0772-6772-4c42-a915-4178335a02f5","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive","page_number":244,"box":{"x":117,"y":444,"width":698,"height":12}},{"id":"ed6fb538-b89c-4468-a8c1-4b24703c77f8","block_type":"box","text":"statements, at least quarterly, from the Transfer Agent. These statements will serve as confirmations","page_number":244,"box":{"x":116,"y":459,"width":752,"height":12}},{"id":"5a37f2b1-f094-4397-822d-ac717e6fa8b8","block_type":"box","text":"for automatic investment purchases and the reinvestment of dividends. The statements also will show","page_number":244,"box":{"x":116,"y":475,"width":760,"height":12}},{"id":"202e3767-f634-489d-8eeb-8cc5ac7512db","block_type":"box","text":"any other activity in your Investment Account since the last statement. You also will receive separate","page_number":244,"box":{"x":116,"y":490,"width":752,"height":12}},{"id":"47f200dd-1070-4270-a9d3-d7019e0b6f48","block_type":"box","text":"confirmations for each purchase or sale transaction other than automatic investment purchases and","page_number":244,"box":{"x":116,"y":506,"width":746,"height":12}},{"id":"561d042e-8c05-4cd2-8fd7-ccb78783e51e","block_type":"box","text":"the reinvestment of dividends. If your Investment Account is held at the Transfer Agent you may make","page_number":244,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"b8f10250-7258-4899-a108-568999daaaa2","block_type":"box","text":"additions to it at any time by mailing a check directly to the Transfer Agent. Each Fund limits purchases","page_number":244,"box":{"x":116,"y":537,"width":771,"height":12}},{"id":"cf51da5d-e5e0-4a1f-90a7-74cd02ff17bd","block_type":"box","text":"by personal check to $500,000 per trade. You may also maintain an account through a selected","page_number":244,"box":{"x":117,"y":551,"width":715,"height":13}},{"id":"ab8875c6-0b50-4470-893f-822c99db8113","block_type":"box","text":"securities dealer or other financial intermediary. If you transfer shares out of an account maintained","page_number":244,"box":{"x":116,"y":568,"width":742,"height":12}},{"id":"c3cfd7c6-6d1f-495b-b6b4-3735afbaaa3f","block_type":"box","text":"with a selected securities dealer or other financial intermediary, an Investment Account in your name","page_number":244,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"069ab2de-9b0d-4ea3-9581-0f6e03f613e8","block_type":"box","text":"may be opened automatically at the Transfer Agent.","page_number":244,"box":{"x":117,"y":599,"width":390,"height":12}},{"id":"120f4d6a-98cb-4528-a347-31f629428f99","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to","page_number":244,"box":{"x":116,"y":630,"width":723,"height":12}},{"id":"9a303130-bc42-4d86-946b-752ffe8aec23","block_type":"box","text":"another securities dealer or other financial intermediary that has entered into an agreement with the","page_number":244,"box":{"x":116,"y":645,"width":745,"height":12}},{"id":"cc795b32-1c69-4f7d-a3ef-e3650965a18f","block_type":"box","text":"Distributor. Certain shareholder services may not be available for the transferred shares. All future","page_number":244,"box":{"x":117,"y":661,"width":727,"height":12}},{"id":"7b91f1af-b6ab-4d45-ab31-c2ef35306f1b","block_type":"box","text":"trading of these assets must be coordinated by the new firm. If you wish to transfer your shares to a","page_number":244,"box":{"x":116,"y":676,"width":740,"height":12}},{"id":"a08b0af6-0082-4b12-847e-0bcc74f1152c","block_type":"box","text":"securities dealer or other financial intermediary that has not entered into an agreement with the","page_number":244,"box":{"x":116,"y":692,"width":706,"height":12}},{"id":"6b0f932d-5536-4034-8990-4286b602e601","block_type":"box","text":"Distributor, you must either (i) redeem your shares, paying any applicable CDSC or (ii) continue to","page_number":244,"box":{"x":117,"y":707,"width":727,"height":12}},{"id":"fcc8ba82-d368-498b-bc50-757107d80f92","block_type":"box","text":"maintain an Investment Account at the Transfer Agent for those shares. You also may request that the","page_number":244,"box":{"x":117,"y":723,"width":759,"height":12}},{"id":"1d3d4eb3-82af-425a-b02a-96a013156053","block_type":"box","text":"new securities dealer or other financial intermediary maintain the shares in an account at the Transfer","page_number":244,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"b7d194eb-a343-4db4-b5d6-6248fc471130","block_type":"box","text":"Agent registered in the name of the securities dealer or other financial intermediary for your benefit","page_number":244,"box":{"x":116,"y":754,"width":733,"height":12}},{"id":"bd979773-c020-43c7-abf9-2c3b052185da","block_type":"box","text":"whether the securities dealer or other financial intermediary has entered into a selected dealer","page_number":244,"box":{"x":116,"y":769,"width":700,"height":12}},{"id":"a509f7ca-0567-438c-86a8-6bf3a4bf112e","block_type":"box","text":"agreement or not. In the interest of economy and convenience and because of the operating","page_number":244,"box":{"x":116,"y":785,"width":685,"height":12}},{"id":"36457531-79fb-4725-8be4-88d98aa6becf","block_type":"box","text":"procedures of each Fund, share certificates will not be issued physically. Shares are maintained by","page_number":244,"box":{"x":117,"y":800,"width":734,"height":12}},{"id":"89a3b8e0-655f-4700-9964-1aedd617c083","block_type":"box","text":"each Fund on its register maintained by the Transfer Agent and the holders thereof will have the same","page_number":244,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"3500745c-96c2-4008-b86e-bfee34fbec02","block_type":"box","text":"rights and ownership with respect to such shares as if certificates had been issued.","page_number":244,"box":{"x":117,"y":831,"width":621,"height":12}},{"id":"132c572b-85cc-45f1-9b88-cd8d54faf52a","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement","page_number":244,"box":{"x":117,"y":862,"width":754,"height":12}},{"id":"36356f8f-bf54-481c-8271-3ae1d4a363a4","block_type":"box","text":"account, from one selected securities dealer to another securities dealer or other financial","page_number":244,"box":{"x":116,"y":878,"width":671,"height":11}},{"id":"91c45514-6cbf-4862-8c0f-a89cda05ef2d","block_type":"box","text":"II-150","page_number":244,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"58e798e3-8bde-470d-92d8-9ab997fd6feb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":244,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d44fe3df-a2fc-4fc0-abd5-aac89505ffca","block_type":"box","text":"intermediary, you should be aware that if the new firm will not take delivery of shares of the Fund, you","page_number":245,"box":{"x":117,"y":87,"width":759,"height":12}},{"id":"775536ab-5a6c-42f3-835c-0ee58618f64b","block_type":"box","text":"must either redeem the shares (paying any applicable CDSC) so that the cash proceeds can be","page_number":245,"box":{"x":117,"y":102,"width":714,"height":13}},{"id":"fe5fa755-90fe-43df-9652-f1052c3d492b","block_type":"box","text":"transferred to the account at the new firm, or you must continue to maintain a retirement account at the","page_number":245,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"6272578f-ae36-4aa1-af45-066c30541402","block_type":"box","text":"original selected securities dealer for those shares.","page_number":245,"box":{"x":116,"y":134,"width":383,"height":12}},{"id":"5a7a8212-78c9-45ef-87a5-d9cdef7d66c5","block_type":"box","text":"Exchange Privilege","page_number":245,"box":{"x":117,"y":165,"width":158,"height":12}},{"id":"681f6d6f-8073-4b7d-a81a-7300146b8f9d","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G","page_number":245,"box":{"x":117,"y":192,"width":763,"height":11}},{"id":"9684e2b8-2e73-431b-8e3e-db9f90f7800a","block_type":"box","text":"Shares of each Fund have an exchange privilege with certain other Funds. However, Investor A1","page_number":245,"box":{"x":116,"y":207,"width":725,"height":12}},{"id":"42158d0e-669c-4936-bd2b-704031e6fd59","block_type":"box","text":"Shares may only exchange out. The minimum amount for exchanges of Investor class shares is","page_number":245,"box":{"x":116,"y":223,"width":717,"height":12}},{"id":"94ae7c71-92d4-4f33-8d0d-3b16177ecb22","block_type":"box","text":"$1,000, although you may exchange less than $1,000 if you already have an account in the Fund into","page_number":245,"box":{"x":116,"y":237,"width":758,"height":13}},{"id":"72a5a7b1-a348-46ee-a565-6a1423b28176","block_type":"box","text":"which you are exchanging. You may only exchange into a share class and a Fund that are open to new","page_number":245,"box":{"x":116,"y":254,"width":772,"height":12}},{"id":"9e4e3429-5808-4b26-891d-ab61ea62b796","block_type":"box","text":"investors or in which you have a current account if the class or fund is closed to new investors. Before","page_number":245,"box":{"x":117,"y":269,"width":761,"height":12}},{"id":"65498e5b-7a5e-470a-b531-abf0122cc1dd","block_type":"box","text":"effecting an exchange, you should obtain a currently effective prospectus of the fund into which you","page_number":245,"box":{"x":116,"y":285,"width":744,"height":12}},{"id":"9520da8a-9d8d-421a-8181-15bcb1697554","block_type":"box","text":"wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":245,"box":{"x":116,"y":300,"width":754,"height":12}},{"id":"2251421b-f938-42f0-9846-6ff0ccba0fac","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":245,"box":{"x":116,"y":316,"width":630,"height":12}},{"id":"cb1e99d3-c34c-493f-a2cd-f4abc812821e","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":245,"box":{"x":116,"y":347,"width":689,"height":13}},{"id":"46cfb4cb-73da-4a04-8cf7-1f358bc184fa","block_type":"box","text":"Institutional Shares are exchangeable with Institutional Shares of other Funds. Investor A and Investor","page_number":245,"box":{"x":117,"y":363,"width":763,"height":12}},{"id":"3a3c4fc4-f33a-44a4-a28a-5244fc1f4df7","block_type":"box","text":"A1 Shares are exchangeable for Investor A Shares of other Funds to the extent such shares are","page_number":245,"box":{"x":116,"y":378,"width":719,"height":13}},{"id":"7b30e9df-8949-4482-90ac-dd071336098c","block_type":"box","text":"offered by your financial intermediary. Investor P Shares are exchangeable for Investor P Shares of","page_number":245,"box":{"x":116,"y":394,"width":744,"height":12}},{"id":"7d245cbe-9574-4df7-8e76-34b918fa7f4d","block_type":"box","text":"other Funds, to the extent such shares are offered by your financial intermediary. Class K Shares are","page_number":245,"box":{"x":116,"y":409,"width":756,"height":13}},{"id":"c88f7b22-0938-4c22-a7b1-b1cbb7c3ac3d","block_type":"box","text":"exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable for Class G","page_number":245,"box":{"x":116,"y":425,"width":722,"height":12}},{"id":"de661468-72b8-4366-9b6b-16f5945b6915","block_type":"box","text":"Shares of other Funds.","page_number":245,"box":{"x":116,"y":440,"width":176,"height":10}},{"id":"71dcd900-9123-455b-a610-0817724494f0","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of","page_number":245,"box":{"x":117,"y":472,"width":764,"height":12}},{"id":"81af01eb-e4ee-46c9-b9b3-8e4af38d5d2a","block_type":"box","text":"a money market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of","page_number":245,"box":{"x":116,"y":488,"width":748,"height":12}},{"id":"2532c031-68cf-47cb-91fc-cacf5d9532ab","block_type":"box","text":"Investor A or Investor A1 Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares","page_number":245,"box":{"x":117,"y":503,"width":754,"height":12}},{"id":"cc5c8a5f-10d4-4465-a57a-3179b5ca3314","block_type":"box","text":"of a second fund, or for shares of a money market fund (“new Investor A Shares”) are effected on the","page_number":245,"box":{"x":116,"y":519,"width":756,"height":12}},{"id":"45bbd27b-b5f7-4bc7-a2f1-bd0c94c409bc","block_type":"box","text":"basis of relative NAV per share. Exchanges of Investor P Shares outstanding for Investor P Shares of","page_number":245,"box":{"x":117,"y":534,"width":759,"height":12}},{"id":"c6b4ca65-4ac8-4ec0-a952-e45fd6b15c1a","block_type":"box","text":"a second fund are effected on the basis of relative NAV per share. Exchanges of Class K Shares","page_number":245,"box":{"x":116,"y":550,"width":724,"height":12}},{"id":"b6da8868-29b6-4256-9fac-b7063d24a7f5","block_type":"box","text":"outstanding for Class K Shares of a second fund, or","page_number":245,"box":{"x":116,"y":565,"width":390,"height":12}},{"id":"021374e6-28eb-4754-8da4-1fdb696376b1","block_type":"box","text":"for shares of a money market fund are effected on","page_number":245,"box":{"x":506,"y":565,"width":378,"height":12}},{"id":"56b8e626-a063-40b3-8d00-2dd7a75ba637","block_type":"box","text":"the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class G Shares of a","page_number":245,"box":{"x":116,"y":581,"width":770,"height":12}},{"id":"24efa627-498e-42c8-8eba-50a505ac7afb","block_type":"box","text":"second fund are effected on the basis of relative NAV per share.","page_number":245,"box":{"x":116,"y":596,"width":483,"height":12}},{"id":"3fa7969b-91df-429b-90ce-f4826fc5c3a8","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":245,"box":{"x":116,"y":628,"width":250,"height":12}},{"id":"34621e60-513e-4299-a7fb-dff24ee9d21e","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding","page_number":245,"box":{"x":367,"y":628,"width":495,"height":12}},{"id":"63e00506-e2c0-4e6b-8745-b4cb3b869103","block_type":"box","text":"(“outstanding Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund","page_number":245,"box":{"x":117,"y":644,"width":758,"height":12}},{"id":"775eff6f-a529-4a2e-8eda-e5bab48ad718","block_type":"box","text":"(“new Investor C Shares”) or for shares of a money market fund (“new money market fund Shares”) on","page_number":245,"box":{"x":117,"y":659,"width":766,"height":12}},{"id":"cd393b1e-17ef-4b6e-b151-9b02c0a37cc2","block_type":"box","text":"the basis of relative NAV per share, without the payment of any CDSC. Certain Funds impose different","page_number":245,"box":{"x":116,"y":675,"width":762,"height":12}},{"id":"abbdb24d-69e4-46ef-94f9-8291f4840f6b","block_type":"box","text":"CDSC schedules. For purposes of computing the CDSC upon redemption of new Investor C Shares or","page_number":245,"box":{"x":117,"y":690,"width":761,"height":12}},{"id":"3589f988-2090-4afb-9842-6a0f607210e9","block_type":"box","text":"new money market fund Shares, as applicable, the time you held both the exchanged Investor C","page_number":245,"box":{"x":117,"y":706,"width":715,"height":12}},{"id":"999f3fa1-09ee-4e45-96d7-b32044d65594","block_type":"box","text":"Shares and the new Investor C Shares or new money market fund Shares will count towards the","page_number":245,"box":{"x":116,"y":721,"width":716,"height":12}},{"id":"dba73394-9e3c-4485-b6b3-b65ebeffd158","block_type":"box","text":"holding period of the new Investor C Shares or new money market fund Shares.","page_number":245,"box":{"x":117,"y":737,"width":591,"height":12}},{"id":"3d7f5cd0-6046-4210-bedf-832c430062fc","block_type":"box","text":"Exchanges of Service Shares.","page_number":245,"box":{"x":116,"y":768,"width":223,"height":12}},{"id":"6d36d315-6865-4f44-b896-c2cf4eea05c4","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are","page_number":245,"box":{"x":347,"y":768,"width":530,"height":12}},{"id":"54eb82e0-35bb-474b-b7ab-64e64b7d3fae","block_type":"box","text":"covered by selected dealer agreements with the Distributor.","page_number":245,"box":{"x":116,"y":784,"width":442,"height":12}},{"id":"bb0fdff8-662e-45fa-beba-c706062b8d96","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":245,"box":{"x":116,"y":816,"width":356,"height":12}},{"id":"998ad777-656c-41ee-b889-1a867b29a21d","block_type":"box","text":"You may exchange any class of Investor class shares,","page_number":245,"box":{"x":478,"y":816,"width":404,"height":12}},{"id":"1035407d-ec94-4aed-97e3-bd3858a3cb50","block_type":"box","text":"excluding Investor P Shares, for shares of an affiliated money market fund. If you exchange into","page_number":245,"box":{"x":116,"y":831,"width":717,"height":12}},{"id":"d0c842e7-890a-4fa6-8c6a-f3f83ffe74d6","block_type":"box","text":"BlackRock Summit Cash Reserves Fund (“Summit”), a series of BlackRock Financial Institutions","page_number":245,"box":{"x":117,"y":847,"width":720,"height":12}},{"id":"47f96f60-e186-4c11-a2e1-e5fadb6626cc","block_type":"box","text":"Series Trust, you will receive one of two classes of shares: exchanges of Investor A, Investor A1 and","page_number":245,"box":{"x":116,"y":862,"width":753,"height":12}},{"id":"da367ac0-88f4-4fc7-b30d-3cb12e219331","block_type":"box","text":"Institutional Shares of a Fund will receive Investor A Shares of Summit and exchanges of Investor C","page_number":245,"box":{"x":117,"y":878,"width":747,"height":12}},{"id":"0aa2e835-f28a-455a-8857-5e343cb2e492","block_type":"box","text":"II-151","page_number":245,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"655091cc-2599-4546-89a1-e14f403d9d0a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":245,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9e0503bb-e034-4688-b7ff-e13e5a63f65c","block_type":"box","text":"Shares of a Fund will receive Investor C Shares of Summit. You may exchange Investor A Shares of","page_number":246,"box":{"x":116,"y":87,"width":751,"height":12}},{"id":"9236b675-caa0-4695-8b8d-8f3890b00f04","block_type":"box","text":"Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to hold such shares.","page_number":246,"box":{"x":116,"y":102,"width":748,"height":13}},{"id":"590c1977-28b6-40ed-aee0-7a5040ecbe48","block_type":"box","text":"You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":246,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"851adcff-5c76-44b9-9190-2c3a71c15175","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count","page_number":246,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"1f6b55dc-d865-4dc7-8171-3ae1b800ba28","block_type":"box","text":"toward satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C","page_number":246,"box":{"x":116,"y":149,"width":752,"height":12}},{"id":"5bc58bc6-f60a-4d53-a666-cf0c64cf2a44","block_type":"box","text":"Shares of Summit are subject to a distribution fee at an annual rate of 0.75% of average daily net","page_number":246,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"48d4d5ab-df68-4868-9e92-cc66a3b49cb1","block_type":"box","text":"assets of such Investor C Shares. Exchanges of Investor C Shares of a money market fund other than","page_number":246,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"5a93cc65-2ee0-4768-be0f-ff129a8f07fe","block_type":"box","text":"Summit for Investor C Shares of a Fund will be exercised at NAV. However, a CDSC may be charged","page_number":246,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"9ec12949-d385-4fcf-af4b-85372f75b0c1","block_type":"box","text":"in connection with any subsequent redemption of the Investor C Shares of the Fund received in the","page_number":246,"box":{"x":117,"y":211,"width":740,"height":12}},{"id":"f1cc9f28-42c5-4363-944d-d75305a62e83","block_type":"box","text":"exchange. In determining the holding period for calculating the CDSC payable on redemption of","page_number":246,"box":{"x":116,"y":227,"width":715,"height":12}},{"id":"cb4ff92d-5d02-4449-b208-4c28a571a4f9","block_type":"box","text":"Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":246,"box":{"x":117,"y":242,"width":759,"height":12}},{"id":"ed61ee4c-3f5f-4107-817f-013f45d24e66","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired","page_number":246,"box":{"x":117,"y":258,"width":761,"height":12}},{"id":"30daafd3-2840-471a-a08d-a4c1406fdd81","block_type":"box","text":"through exchange.","page_number":246,"box":{"x":116,"y":273,"width":144,"height":12}},{"id":"5906222e-8224-4858-9e43-56b2de4d4194","block_type":"box","text":"Exchanges by Participants in Certain Programs.","page_number":246,"box":{"x":116,"y":304,"width":362,"height":12}},{"id":"7ea371dd-d559-4887-b977-e293db05e240","block_type":"box","text":"The exchange privilege may be modified with respect","page_number":246,"box":{"x":478,"y":304,"width":401,"height":12}},{"id":"b5070021-080b-4669-b969-c83608f34520","block_type":"box","text":"to certain participants in mutual fund advisory programs and other fee-based programs sponsored by","page_number":246,"box":{"x":116,"y":320,"width":755,"height":12}},{"id":"745acb38-5dda-4a67-a93b-7e36eb57f6e6","block_type":"box","text":"the Manager, an affiliate of the Manager, or selected securities dealers or other financial intermediaries","page_number":246,"box":{"x":116,"y":335,"width":770,"height":12}},{"id":"c544b9fc-a631-4a95-9024-df295c72609e","block_type":"box","text":"that have an agreement with the Distributor. See “Fee-Based Programs” below.","page_number":246,"box":{"x":116,"y":351,"width":595,"height":12}},{"id":"af1e30ea-fc92-4a14-962d-51f5a38685d5","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":246,"box":{"x":116,"y":382,"width":269,"height":12}},{"id":"7e749087-5155-4a8e-8b04-3c8927fd6421","block_type":"box","text":"To exercise the exchange privilege, you should contact your","page_number":246,"box":{"x":385,"y":382,"width":452,"height":12}},{"id":"7ce2fa86-cf5c-43b1-bd83-51889bb2b179","block_type":"box","text":"financial adviser or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold","page_number":246,"box":{"x":116,"y":397,"width":758,"height":12}},{"id":"5134c49b-0647-4eef-babc-0d08e130db28","block_type":"box","text":"share certificates, you may exercise the exchange privilege by wire through your securities dealer or","page_number":246,"box":{"x":116,"y":413,"width":749,"height":12}},{"id":"391cb100-19df-4851-910b-e8f661ff65e8","block_type":"box","text":"other financial intermediary. Each Fund reserves the right to require a properly completed exchange","page_number":246,"box":{"x":116,"y":428,"width":747,"height":12}},{"id":"1a518bdc-c91b-4dbc-9fc5-bb42788b03d6","block_type":"box","text":"application.","page_number":246,"box":{"x":116,"y":444,"width":89,"height":12}},{"id":"ae722494-fd8e-4a8e-bd3d-fb0db8ad2e37","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/","page_number":246,"box":{"x":116,"y":475,"width":767,"height":12}},{"id":"f20545da-0144-4d22-b236-abd6e9547ac8","block_type":"box","text":"o the Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429.","page_number":246,"box":{"x":116,"y":490,"width":771,"height":12}},{"id":"891624f9-b0bf-4cce-be5c-ed345aa209c9","block_type":"box","text":"Shareholders are automatically provided with telephone exchange privileges when opening an","page_number":246,"box":{"x":116,"y":506,"width":705,"height":12}},{"id":"e486bc86-1b95-4fa7-96a0-e4c0098c30b0","block_type":"box","text":"account, unless they indicate on the Application that they do not wish to use this privilege. To add this","page_number":246,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"0907d547-be1f-4292-b826-c8179d335f2e","block_type":"box","text":"feature to an existing account that previously did not provide this option, a Telephone Exchange","page_number":246,"box":{"x":116,"y":537,"width":716,"height":12}},{"id":"244bb3f8-fc9f-44cb-b85d-4521c7821390","block_type":"box","text":"Authorization Form must be filed with the Transfer Agent. This form is available from the Transfer","page_number":246,"box":{"x":116,"y":552,"width":727,"height":12}},{"id":"c6e3138b-f73a-49d5-9775-600512a4a3a7","block_type":"box","text":"Agent. Once this election has been made, the shareholder may simply contact the Fund by telephone","page_number":246,"box":{"x":116,"y":568,"width":759,"height":12}},{"id":"95433d39-d1da-4473-8b46-fdee29afd734","block_type":"box","text":"at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":246,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"e15487bd-2e95-416a-beea-95fecaeb5205","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange","page_number":246,"box":{"x":116,"y":599,"width":736,"height":12}},{"id":"f240840b-c4fd-46a6-b49f-f732bd84b93d","block_type":"box","text":"requests to the Transfer Agent in writing.","page_number":246,"box":{"x":117,"y":614,"width":307,"height":12}},{"id":"ba69eedc-7c95-4c46-855e-db7483493ec6","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares","page_number":246,"box":{"x":117,"y":645,"width":760,"height":12}},{"id":"0e79d183-69aa-4530-9e57-dd45e66f7f69","block_type":"box","text":"are being acquired, a new account will be established with the same registration, dividend and capital","page_number":246,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"ae7d6b6c-4ad8-4206-a63c-c0946e1f9a63","block_type":"box","text":"gain options and broker of record as the account from which shares are exchanged, unless otherwise","page_number":246,"box":{"x":116,"y":676,"width":752,"height":12}},{"id":"add62f66-499f-4929-8301-c4b89938fc0b","block_type":"box","text":"specified in writing by the shareholder with all signatures guaranteed by an eligible guarantor institution","page_number":246,"box":{"x":116,"y":692,"width":764,"height":12}},{"id":"e696701f-5028-40a9-bca1-4166f45bc75a","block_type":"box","text":"as defined below. In order to participate in the Automatic Investment Program or establish a","page_number":246,"box":{"x":116,"y":707,"width":680,"height":12}},{"id":"5cf146f9-770e-4987-92b9-ef290cb689e1","block_type":"box","text":"Systematic Withdrawal Plan for the new account, however, an exchanging shareholder must file a","page_number":246,"box":{"x":116,"y":723,"width":726,"height":12}},{"id":"f91a82ce-b612-4a3c-94be-8cb35ba5dceb","block_type":"box","text":"specific written request.","page_number":246,"box":{"x":116,"y":738,"width":174,"height":12}},{"id":"cb2a136b-0510-4023-a9f7-a1fd91899edc","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment","page_number":246,"box":{"x":116,"y":769,"width":686,"height":12}},{"id":"7dcfed96-3469-4798-a38b-69754c0e6963","block_type":"box","text":"requirement, and must be legally available for sale in the state of the investor’s residence. For U.S.","page_number":246,"box":{"x":117,"y":785,"width":732,"height":12}},{"id":"3d4eeacd-7f52-43e2-b1d3-41a767887bea","block_type":"box","text":"federal income tax purposes, a share exchange is a taxable event and, accordingly, a capital gain or","page_number":246,"box":{"x":116,"y":800,"width":746,"height":12}},{"id":"0066ad3b-0adc-47a9-9ed2-d31a8d6eb0a3","block_type":"box","text":"loss may be realized. Before making an exchange request, shareholders should consult a tax or other","page_number":246,"box":{"x":117,"y":816,"width":755,"height":12}},{"id":"1ee01a2f-976e-4cf0-879a-72fe2988dd3c","block_type":"box","text":"financial adviser and should consider the investment objective, policies and restrictions of the","page_number":246,"box":{"x":116,"y":831,"width":697,"height":12}},{"id":"690eccae-254b-4334-b52a-de763d3d30c5","block_type":"box","text":"investment portfolio into which the shareholder is making an exchange. Brokers may charge a fee for","page_number":246,"box":{"x":117,"y":847,"width":754,"height":12}},{"id":"c5884256-90aa-46cd-bde1-86a9775137d7","block_type":"box","text":"handling exchanges.","page_number":246,"box":{"x":117,"y":862,"width":158,"height":12}},{"id":"2196b2ac-b4d0-4608-b812-c18c7e321e9a","block_type":"box","text":"II-152","page_number":246,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"24d9a319-a6ec-4795-b221-9f912a500f28","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":246,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"40084ea5-90e3-4d3f-811b-088db14d2d16","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice","page_number":247,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"94761c61-7842-459d-8a7c-99da5fcb3932","block_type":"box","text":"will be given to shareholders of any material modification or termination except where notice is not","page_number":247,"box":{"x":116,"y":102,"width":733,"height":13}},{"id":"5cfdfe80-7e5f-46d1-9e00-4398a633d943","block_type":"box","text":"required. The Funds reserve the right to reject any telephone exchange request. Telephone exchanges","page_number":247,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"fc105687-2b46-4df8-abd8-265b0e2a79a2","block_type":"box","text":"may be subject to limitations as to amount or frequency, and to other restrictions that may be","page_number":247,"box":{"x":117,"y":134,"width":693,"height":12}},{"id":"efb73e63-fefe-419a-b7f3-2b3d66ac4f99","block_type":"box","text":"established from time to time to ensure that exchanges do not operate to the disadvantage of any","page_number":247,"box":{"x":116,"y":149,"width":729,"height":12}},{"id":"3e36f76a-8f01-4497-acee-e2223b20386d","block_type":"box","text":"portfolio or its shareholders.","page_number":247,"box":{"x":117,"y":165,"width":211,"height":11}},{"id":"af970df6-648b-4e94-b3b6-ff9e7529d09a","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":247,"box":{"x":116,"y":194,"width":770,"height":12}},{"id":"dab15dcd-acd9-4efc-873f-ff76ae5a5a54","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for","page_number":247,"box":{"x":116,"y":210,"width":766,"height":12}},{"id":"0f358ee7-dc77-4d35-aa80-54cce7aac283","block_type":"box","text":"any loss, liability, cost or expense for acting upon telephone instructions reasonably believed to be","page_number":247,"box":{"x":116,"y":225,"width":735,"height":12}},{"id":"b42cdc6f-7a8a-466b-abef-c9ddfc7411c2","block_type":"box","text":"genuine in accordance with such procedures. By use of the exchange privilege, the investor authorizes","page_number":247,"box":{"x":116,"y":241,"width":769,"height":12}},{"id":"0daf2e08-8916-4555-a889-3a258f5f4b29","block_type":"box","text":"the Fund’s Transfer Agent to act on telephonic or written exchange instructions from any person","page_number":247,"box":{"x":116,"y":256,"width":718,"height":12}},{"id":"6442b8e2-ab60-4cbc-94fb-9ff68eb2cfe3","block_type":"box","text":"representing himself to be the investor and believed by the Fund’s Transfer Agent to be genuine. The","page_number":247,"box":{"x":117,"y":272,"width":756,"height":12}},{"id":"af2e78aa-9e44-422c-b9ab-b129367ee16a","block_type":"box","text":"records of the Fund’s Transfer Agent pertaining to such instructions are binding. The exchange","page_number":247,"box":{"x":117,"y":287,"width":709,"height":12}},{"id":"fed2f5b0-63f7-4efa-b671-56abc923dfdc","block_type":"box","text":"privilege may be modified or terminated at any time upon 60 days’ notice to affected shareholders. The","page_number":247,"box":{"x":117,"y":303,"width":768,"height":12}},{"id":"b86a3bec-7f7a-49f2-ab11-c42e75c7ee48","block_type":"box","text":"exchange privilege is only available in states where the exchange may legally be made.","page_number":247,"box":{"x":116,"y":318,"width":655,"height":12}},{"id":"450c4fb9-13c3-4603-b757-65975c3329a1","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange","page_number":247,"box":{"x":117,"y":348,"width":723,"height":12}},{"id":"43525265-44eb-48c5-ad16-ad03cab69db0","block_type":"box","text":"privilege. Certain Funds may suspend the continuous offering of their shares to the general public at","page_number":247,"box":{"x":117,"y":363,"width":747,"height":12}},{"id":"ad590716-47e0-477d-bbf9-22f53c99092d","block_type":"box","text":"any time and may resume such offering from time to time. The exchange privilege is available only to","page_number":247,"box":{"x":116,"y":379,"width":755,"height":12}},{"id":"09444c6e-fc16-497e-b1df-aee09e2773ca","block_type":"box","text":"U.S. shareholders in states where the exchange legally may be made. The exchange privilege may be","page_number":247,"box":{"x":117,"y":394,"width":764,"height":12}},{"id":"8cfc4d3d-de2b-453f-9893-0a4534143e1c","block_type":"box","text":"applicable to other new mutual funds whose shares may be distributed by the Distributor.","page_number":247,"box":{"x":116,"y":410,"width":666,"height":12}},{"id":"aa213357-ab81-4211-8e2d-5504784752b4","block_type":"box","text":"Participation in Fee-Based Programs","page_number":247,"box":{"x":117,"y":439,"width":298,"height":12}},{"id":"5320a0d7-d4b5-4fbd-bf91-6b4175c39c1e","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or","page_number":247,"box":{"x":117,"y":462,"width":747,"height":12}},{"id":"358a6b88-dc33-4c2b-808a-f29ab6bba881","block_type":"box","text":"selected securities dealers or other financial intermediaries that have agreements with the Distributor","page_number":247,"box":{"x":116,"y":477,"width":754,"height":12}},{"id":"cde35d77-f3df-4b73-9e21-ebe504e904b6","block_type":"box","text":"or in certain fee-based programs in which BlackRock participates, you may be able to buy Institutional","page_number":247,"box":{"x":116,"y":493,"width":761,"height":12}},{"id":"7cf63f37-8b9f-4113-bc4b-3b6834c05438","block_type":"box","text":"Shares, including by exchanges from other share classes. Sales charges on the shares being","page_number":247,"box":{"x":116,"y":508,"width":700,"height":12}},{"id":"aa7132f6-d0cb-49ea-8a5f-fc0429ff5b30","block_type":"box","text":"exchanged may be reduced or waived under certain circumstances. You generally cannot transfer","page_number":247,"box":{"x":116,"y":524,"width":733,"height":12}},{"id":"c3dd104d-ecac-41f8-8731-a62b75178758","block_type":"box","text":"shares held through a fee-based program into another account. Instead, if you choose to leave the","page_number":247,"box":{"x":116,"y":539,"width":736,"height":12}},{"id":"7139d2d6-7338-4569-ad0f-de5c3b380186","block_type":"box","text":"fee-based program, you may have to redeem your shares held through the program and purchase","page_number":247,"box":{"x":116,"y":555,"width":735,"height":12}},{"id":"48dec64c-1068-49a1-8adb-612df5b55d54","block_type":"box","text":"shares of another class, which may be subject to distribution and service fees. This may be a taxable","page_number":247,"box":{"x":116,"y":570,"width":755,"height":12}},{"id":"a6fd7690-dc3f-499a-9ab6-ac9b3087e415","block_type":"box","text":"event and you may pay any applicable sales charges or redemption fee. Please speak to your financial","page_number":247,"box":{"x":116,"y":586,"width":769,"height":12}},{"id":"9898d0ac-6b56-4369-bed3-312ae8249804","block_type":"box","text":"intermediary for information about specific policies and procedures applicable to your account.","page_number":247,"box":{"x":117,"y":601,"width":703,"height":13}},{"id":"e59cee90-75fa-4356-84d4-d505b0556b2d","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can","page_number":247,"box":{"x":117,"y":631,"width":749,"height":12}},{"id":"0ef980ef-56cd-4508-a121-46bb0aa4b34e","block_type":"box","text":"be held in an account. In certain circumstances, when a shareholder chooses to continue to hold the","page_number":247,"box":{"x":117,"y":647,"width":749,"height":11}},{"id":"d69f21c0-decd-4b1a-8470-59fbf6f42b36","block_type":"box","text":"shares, whatever share class was held in the program can be held after termination. Shares that have","page_number":247,"box":{"x":116,"y":662,"width":756,"height":12}},{"id":"7e3f69f8-193f-4d25-8acf-d18a97ce3652","block_type":"box","text":"been held for less than specified periods within the program may be subject to a fee upon redemption.","page_number":247,"box":{"x":117,"y":677,"width":756,"height":13}},{"id":"eec72c61-ee46-4a25-9f00-1e28a2c09a7a","block_type":"box","text":"Shareholders that held Investor A or Institutional Shares in the program may be eligible to purchase","page_number":247,"box":{"x":116,"y":693,"width":739,"height":12}},{"id":"4936a019-edd4-412c-ba28-2cce83676527","block_type":"box","text":"additional shares of the respective share class of a Fund, but may be subject to upfront sales charges","page_number":247,"box":{"x":116,"y":709,"width":755,"height":12}},{"id":"876d8056-9235-43d9-a085-78902c575039","block_type":"box","text":"with respect to Investor A Shares. Additional purchases of Institutional Shares are permitted only if you","page_number":247,"box":{"x":116,"y":724,"width":762,"height":12}},{"id":"93de7c4d-234a-473a-a6c1-cf934cb427f2","block_type":"box","text":"have an existing position at the time of purchase or are otherwise eligible to purchase Institutional","page_number":247,"box":{"x":117,"y":740,"width":723,"height":12}},{"id":"2f9a5878-c3e1-4cca-aa4b-b5b9f127928d","block_type":"box","text":"Shares. Please speak to your financial intermediary for more information.","page_number":247,"box":{"x":116,"y":755,"width":542,"height":12}},{"id":"34f14e89-9e63-4922-bc8c-848b082f46a0","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to","page_number":247,"box":{"x":117,"y":785,"width":755,"height":12}},{"id":"1753488c-2da1-43f5-9c78-5cc7febd5012","block_type":"box","text":"leaving a fee-based program or upon termination of the fee-based program) or otherwise in","page_number":247,"box":{"x":117,"y":800,"width":675,"height":12}},{"id":"3b673230-c7cc-4ccf-ae4f-cbacb269eeb7","block_type":"box","text":"accordance with the financial intermediary’s policies and procedures, exchange the share class held in","page_number":247,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"36a9a9b0-13bd-40d5-921b-ab5dd4b57045","block_type":"box","text":"the program for another share class of the same fund, provided that the exchanged shares are not","page_number":247,"box":{"x":116,"y":831,"width":736,"height":12}},{"id":"68aaa2b4-cbde-4bd6-9bd2-b87638f9fca1","block_type":"box","text":"subject to a sales charge and the shareholder meets the eligibility requirements of the new share class.","page_number":247,"box":{"x":116,"y":847,"width":772,"height":12}},{"id":"4ec62600-dc53-401e-83ea-89b3be2af6da","block_type":"box","text":"Please speak to your financial intermediary for information about specific policies and procedures","page_number":247,"box":{"x":117,"y":862,"width":726,"height":12}},{"id":"254694bc-c9b6-471f-99e7-16f687240066","block_type":"box","text":"applicable to your account.","page_number":247,"box":{"x":116,"y":878,"width":205,"height":12}},{"id":"23524977-64d8-4507-ae2b-bcf8933858ff","block_type":"box","text":"II-153","page_number":247,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"466f3c56-6db3-4846-850f-2902ea43b40b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":247,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"11a73b22-8356-49ac-ba34-f04aa4df9d53","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions","page_number":248,"box":{"x":117,"y":87,"width":757,"height":12}},{"id":"63d826a5-cebc-4595-8b29-6f0b7124e86e","block_type":"box","text":"are included in the client agreement for each fee-based program and are available from your financial","page_number":248,"box":{"x":116,"y":102,"width":759,"height":13}},{"id":"f24b48ec-07cc-4fb5-8a59-bf88b3330caa","block_type":"box","text":"professional, selected securities dealer or other financial intermediary. Please speak to your financial","page_number":248,"box":{"x":117,"y":118,"width":753,"height":12}},{"id":"b7747b86-32bd-4331-83b7-7d021c8d52bb","block_type":"box","text":"intermediary for more information.","page_number":248,"box":{"x":117,"y":134,"width":256,"height":12}},{"id":"f5a910f9-d3d4-498c-9393-26d87948ff63","block_type":"box","text":"Retirement and Education Savings Plans","page_number":248,"box":{"x":117,"y":165,"width":331,"height":12}},{"id":"b573bea5-6fa4-468b-bb17-0a8ad0d8f2a3","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from","page_number":248,"box":{"x":117,"y":188,"width":739,"height":12}},{"id":"1ef7a19a-9e33-4e51-90e9-f7818cf96ea6","block_type":"box","text":"your financial intermediary. Under these plans, investments may be made in a Fund (other than a","page_number":248,"box":{"x":116,"y":203,"width":728,"height":12}},{"id":"9a7ae2c0-594a-4cd6-849f-1b8cbdaf843e","block_type":"box","text":"Municipal Fund) and certain of the other mutual funds sponsored by the Manager or its affiliates as well","page_number":248,"box":{"x":117,"y":219,"width":771,"height":12}},{"id":"3d30fdc6-a77b-47a6-8343-bc90549fc070","block_type":"box","text":"as in other securities. There may be fees associated with investing through these plans. Information","page_number":248,"box":{"x":116,"y":234,"width":745,"height":12}},{"id":"c002a6ea-bfc8-4e0e-9dcb-0b71a2f3d756","block_type":"box","text":"with respect to these plans is available on request from your financial intermediary.","page_number":248,"box":{"x":116,"y":250,"width":620,"height":12}},{"id":"ee63a339-7d5c-4fd6-82ad-2e239db13902","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until","page_number":248,"box":{"x":117,"y":281,"width":749,"height":12}},{"id":"bb9c4799-2559-49f0-b7f2-2c336c25efd3","block_type":"box","text":"distributed from the plans and, in the case of Roth IRAs and education savings plans, may be exempt","page_number":248,"box":{"x":116,"y":296,"width":759,"height":12}},{"id":"787572a9-2d1c-461a-b50d-c308786f02c9","block_type":"box","text":"from taxation when distributed as well. Investors considering participation in any retirement or","page_number":248,"box":{"x":116,"y":312,"width":699,"height":12}},{"id":"8782455f-aade-4a7d-b868-7ed950b47f6f","block_type":"box","text":"education savings plan should review specific tax laws relating to the plan and should consult their","page_number":248,"box":{"x":116,"y":327,"width":735,"height":12}},{"id":"89e9b8b9-4fc6-4561-b60d-0248f9474b7a","block_type":"box","text":"attorneys or tax advisors with respect to the establishment and maintenance of any such plan.","page_number":248,"box":{"x":116,"y":343,"width":704,"height":12}},{"id":"9af22f5c-9806-46d4-95b9-dcbc3209bf3a","block_type":"box","text":"Automatic Investment Plans","page_number":248,"box":{"x":116,"y":374,"width":230,"height":9}},{"id":"026a6384-3bd9-4398-9c7b-025e909b834e","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the","page_number":248,"box":{"x":117,"y":397,"width":734,"height":10}},{"id":"5b4009cd-69fa-46ae-98cc-a2c508af2287","block_type":"box","text":"Compass Capital Group of Funds at the time of its combination with The PNC","page_number":248,"box":{"x":117,"y":413,"width":575,"height":12}},{"id":"8c25e8f3-d4a2-4ce6-bfeb-18fc763e533c","block_type":"box","text":"®","page_number":248,"box":{"x":693,"y":412,"width":9,"height":7}},{"id":"ba28515b-4533-422d-973e-a71234f12b31","block_type":"box","text":"Fund in 1996 may","page_number":248,"box":{"x":702,"y":413,"width":144,"height":12}},{"id":"a90e2991-5069-43c3-b412-c807f260fc74","block_type":"box","text":"arrange for periodic investments in that Fund through automatic deductions from a checking or savings","page_number":248,"box":{"x":116,"y":428,"width":769,"height":12}},{"id":"620b52da-6bdf-492a-b11b-4ba411aa191e","block_type":"box","text":"account. The minimum pre-authorized investment amount is $50. If you buy shares of a Fund through","page_number":248,"box":{"x":116,"y":443,"width":760,"height":13}},{"id":"87b41dab-8069-478c-b8e6-f4ef397a001a","block_type":"box","text":"certain accounts, no minimum charge to your bank account is required. Contact your financial adviser","page_number":248,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"64083d12-2586-4039-994e-ce421a09d1a1","block_type":"box","text":"or other financial intermediary for more information.","page_number":248,"box":{"x":116,"y":475,"width":386,"height":12}},{"id":"0e55b05a-a986-4aaf-8cb5-50e8d012700f","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":248,"box":{"x":116,"y":506,"width":318,"height":9}},{"id":"bbc7bc61-b77b-4c81-8314-4a9a1899aeec","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if","page_number":248,"box":{"x":117,"y":529,"width":758,"height":12}},{"id":"9ad0540c-e839-4443-8841-320cc3d0d9d3","block_type":"box","text":"any, to shareholders. All distributions are automatically reinvested at NAV in the form of additional full","page_number":248,"box":{"x":116,"y":544,"width":758,"height":12}},{"id":"f712a16e-b4c6-4280-b712-a0ac54dffa86","block_type":"box","text":"and fractional shares of the same class of shares of the relevant Fund unless a shareholder elects","page_number":248,"box":{"x":116,"y":560,"width":734,"height":9}},{"id":"698cb9c4-ded4-4e78-be12-4247409aa097","block_type":"box","text":"otherwise or as otherwise set forth in a Fund’s prospectus. Such election, or any revocation thereof,","page_number":248,"box":{"x":116,"y":575,"width":746,"height":12}},{"id":"b0451e45-a014-441e-8704-b1562c7fced8","block_type":"box","text":"must be made in writing to the Transfer Agent, and will become effective with respect to dividends paid","page_number":248,"box":{"x":117,"y":591,"width":767,"height":12}},{"id":"a6c84843-1c5e-4e1f-90d4-44d0b846720b","block_type":"box","text":"after its receipt by the Transfer Agent.","page_number":248,"box":{"x":116,"y":606,"width":286,"height":12}},{"id":"336d094b-5559-476c-98ce-ba4f21f9a7cb","block_type":"box","text":"Systematic Withdrawal Plans","page_number":248,"box":{"x":116,"y":637,"width":237,"height":12}},{"id":"d8ceb7f9-fe93-4555-8df9-a29647ae596d","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan","page_number":248,"box":{"x":116,"y":661,"width":747,"height":12}},{"id":"5faaca38-6619-41d3-94ec-5e46eeeece2a","block_type":"box","text":"(“SWP”). Upon commencement of the SWP, the account must have a current value of $10,000 or more","page_number":248,"box":{"x":117,"y":675,"width":765,"height":13}},{"id":"3f156318-d10d-4d58-b83d-b4e4eb7abc00","block_type":"box","text":"in a Fund. Shareholders may elect to receive automatic cash payments of $50 or more at any interval.","page_number":248,"box":{"x":117,"y":691,"width":755,"height":13}},{"id":"87009a03-81c6-4a9c-9052-db928d956ac6","block_type":"box","text":"You may choose any day for the withdrawal. If no day is specified, the withdrawals will be processed","page_number":248,"box":{"x":116,"y":707,"width":745,"height":12}},{"id":"0fe8364c-c3e9-4719-a7b6-ffd20568e2db","block_type":"box","text":"on the 25th day of the month or, if such day is not a business day, on the prior business day and are","page_number":248,"box":{"x":116,"y":723,"width":744,"height":12}},{"id":"671293e5-e55d-4899-a033-b8da4f8fdec2","block_type":"box","text":"paid promptly thereafter. An investor may utilize the SWP by completing the Systematic Withdrawal","page_number":248,"box":{"x":117,"y":738,"width":736,"height":12}},{"id":"c378e346-7642-4f32-a730-eb0a35583adb","block_type":"box","text":"Plan Application Form which may be obtained by visiting our website at www.blackrock.com.","page_number":248,"box":{"x":117,"y":754,"width":685,"height":12}},{"id":"78fe1b72-dcd6-4e44-bc96-2c5c453532b3","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the","page_number":248,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"d2fb81c3-b3ca-48d1-9f4d-3bd29597eaa0","block_type":"box","text":"account will be depleted. To participate in the SWP, shareholders must have their dividends","page_number":248,"box":{"x":116,"y":800,"width":681,"height":12}},{"id":"58f36b7f-08d1-43b5-ac92-c1aecc975054","block_type":"box","text":"automatically reinvested. Shareholders may change or cancel the SWP at any time, upon written","page_number":248,"box":{"x":116,"y":816,"width":717,"height":12}},{"id":"4556a6e8-da78-4482-aba1-77c8304772de","block_type":"box","text":"notice to the Fund, or by calling the Fund at (800) 441-7762. Purchases of additional Investor A or","page_number":248,"box":{"x":117,"y":831,"width":731,"height":12}},{"id":"dcfd35c9-b6ec-42e1-a19b-c7e9b973e7a7","block_type":"box","text":"Investor P Shares of the Fund concurrently with withdrawals may be disadvantageous to investors","page_number":248,"box":{"x":117,"y":847,"width":733,"height":12}},{"id":"ec5a426b-f174-479f-b3db-18840f908b23","block_type":"box","text":"because of the sales charges involved and, therefore, are discouraged. No CDSC will be assessed on","page_number":248,"box":{"x":117,"y":862,"width":762,"height":12}},{"id":"d1764769-a226-421a-8730-07a8d3674ed2","block_type":"box","text":"redemptions of Investor C Shares made through the SWP that do not exceed 12% of the original","page_number":248,"box":{"x":117,"y":878,"width":721,"height":12}},{"id":"c167dce0-7943-4d8c-9f96-8952c2c57fed","block_type":"box","text":"II-154","page_number":248,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"b9203c06-5e17-48a7-8b2c-b86274e0c917","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":248,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2bf321c1-fbb0-4ae3-909f-1bdb4466d660","block_type":"box","text":"investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP","page_number":249,"box":{"x":117,"y":87,"width":680,"height":12}},{"id":"5051fc51-c27c-46bf-9a7f-e8d9b177c0dd","block_type":"box","text":"redemptions of Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly),","page_number":249,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"c909370a-dc03-49ba-bc70-38c47a7b62f1","block_type":"box","text":"3% (quarterly) and 6% (semi-annually), respectively, of an account’s NAV on the redemption date.","page_number":249,"box":{"x":116,"y":118,"width":734,"height":12}},{"id":"b1109777-e7de-4b94-b5fb-7eeeaa95ab82","block_type":"box","text":"SWP redemptions of Investor C Shares in excess of this limit are still subject to the applicable CDSC.","page_number":249,"box":{"x":116,"y":134,"width":758,"height":12}},{"id":"0b9b9cd8-fa6f-4f21-b760-76398efaa2b1","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above","page_number":249,"box":{"x":117,"y":164,"width":754,"height":12}},{"id":"2fd4d4f6-836f-4b5f-bdf6-60cf1d9807f5","block_type":"box","text":"(see “How to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,”","page_number":249,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"b299441c-c6b1-40dd-943b-d7d2e5146c74","block_type":"box","text":"as applicable, in the Fund’s Prospectus) and the SWP at the same time.","page_number":249,"box":{"x":116,"y":195,"width":540,"height":12}},{"id":"2048f125-5ad2-414c-af86-f4ecd0987927","block_type":"box","text":"Dividend Allocation Plan","page_number":249,"box":{"x":117,"y":226,"width":201,"height":9}},{"id":"74ac0d06-a05e-47ea-b37f-85fc3039123b","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and","page_number":249,"box":{"x":116,"y":252,"width":771,"height":11}},{"id":"9ae4404a-1629-4920-a9d1-9fab922823c2","block_type":"box","text":"any other distributions from any Eligible Fund (which means funds so designated by the Distributor","page_number":249,"box":{"x":116,"y":267,"width":737,"height":12}},{"id":"d7245bcb-d47d-4c4a-9e0a-c9de94015b64","block_type":"box","text":"from time to time) automatically invested at NAV in one other such Eligible Fund designated by the","page_number":249,"box":{"x":116,"y":282,"width":737,"height":13}},{"id":"3eebe70b-565b-4ed4-af34-34e3777bc16c","block_type":"box","text":"shareholder, provided the account into which the dividends and distributions are directed is initially","page_number":249,"box":{"x":116,"y":298,"width":735,"height":12}},{"id":"9b686c50-9386-4bfe-88db-c454b09a62c6","block_type":"box","text":"funded with the requisite minimum amount.","page_number":249,"box":{"x":116,"y":313,"width":325,"height":12}},{"id":"88e48c04-a8f7-4677-835d-efff2d5ccbab","block_type":"box","text":"P","page_number":249,"box":{"x":428,"y":359,"width":9,"height":10}},{"id":"4de8a7f5-da6f-47bc-9f6d-04930c60e4a9","block_type":"box","text":"RICING","page_number":249,"box":{"x":439,"y":362,"width":45,"height":7}},{"id":"00ef3602-61f4-4ec6-8157-789d87b5fb80","block_type":"box","text":"OF","page_number":249,"box":{"x":491,"y":362,"width":17,"height":7}},{"id":"e51f3b8d-d57a-4a9b-a17c-6a3ae0066fb6","block_type":"box","text":"S","page_number":249,"box":{"x":509,"y":359,"width":15,"height":10}},{"id":"e377391a-4b7f-4ee7-a1bc-2ab319d88f05","block_type":"box","text":"HARES","page_number":249,"box":{"x":526,"y":362,"width":46,"height":7}},{"id":"f6bf08c9-e909-4ad4-8ad7-5ce96fec4331","block_type":"box","text":"Determination of Net Asset Value","page_number":249,"box":{"x":117,"y":390,"width":269,"height":10}},{"id":"86553df1-349e-4dd7-8376-39f5217577e5","block_type":"box","text":"Valuation of Shares.","page_number":249,"box":{"x":116,"y":413,"width":160,"height":10}},{"id":"843a7a50-c208-468c-b078-f8b4fc6d666a","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the","page_number":249,"box":{"x":278,"y":413,"width":602,"height":12}},{"id":"acaebed5-dd35-49b9-a846-43ed7c6807dc","block_type":"box","text":"close of regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day","page_number":249,"box":{"x":116,"y":429,"width":752,"height":12}},{"id":"4be43ca1-710f-413b-879e-1fc2566a6fdf","block_type":"box","text":"the NYSE is open. Valuation of assets held by a Fund is as follows:","page_number":249,"box":{"x":116,"y":444,"width":505,"height":12}},{"id":"e3e0f389-5c23-4132-b219-2167921bca8d","block_type":"box","text":"Equity Investments.","page_number":249,"box":{"x":117,"y":475,"width":157,"height":12}},{"id":"2223378f-314c-4661-85c7-559a8311555a","block_type":"box","text":"Equity securities traded on a recognized securities exchange (e.g., NYSE), on","page_number":249,"box":{"x":275,"y":475,"width":589,"height":12}},{"id":"3e15b6e1-3e07-4059-a6dc-a7e2e45c046a","block_type":"box","text":"separate trading boards of a securities exchange or through a market system that provides","page_number":249,"box":{"x":116,"y":490,"width":679,"height":12}},{"id":"51ccf468-ced9-459e-9716-751aa33adc9b","block_type":"box","text":"contemporaneous transaction pricing information (each, an “Exchange”) are valued using information","page_number":249,"box":{"x":116,"y":506,"width":756,"height":12}},{"id":"85ce1061-9acd-4cdb-bfc1-677bd081f79c","block_type":"box","text":"obtained via independent pricing services, generally at the Exchange closing price or if an Exchange","page_number":249,"box":{"x":116,"y":521,"width":751,"height":12}},{"id":"2a5c3adb-9282-457b-b33c-7bc31a0d467f","block_type":"box","text":"closing price is not available, the last traded price on that Exchange prior to the time as of which the","page_number":249,"box":{"x":116,"y":537,"width":745,"height":12}},{"id":"e1af582e-b05c-436d-ada8-dcded498fe9a","block_type":"box","text":"assets or liabilities are valued. However, under certain circumstances, other means of determining","page_number":249,"box":{"x":116,"y":552,"width":734,"height":12}},{"id":"e1a7ae28-cb1a-42d9-8c8b-fffe270c65f8","block_type":"box","text":"current market value may be used. If an equity security is traded on more than one Exchange, the","page_number":249,"box":{"x":116,"y":568,"width":732,"height":12}},{"id":"709e0edf-cbda-4ade-b51d-d1fd44a83b9c","block_type":"box","text":"current market value of the security where it is primarily traded generally will be used. In the event that","page_number":249,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"6c163b42-6fd0-44ec-80eb-9a0a6a2bf198","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","page_number":249,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"6c80ccd8-cc0f-424f-9b18-e6abc4f39eac","block_type":"box","text":"security, the last bid (long positions) or ask (short positions) price, if available, will be used as the value","page_number":249,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"107ac020-032d-4986-a5fe-13b4a9feb917","block_type":"box","text":"of such security. If a Fund holds both long and short positions in the same security, the last bid price","page_number":249,"box":{"x":116,"y":630,"width":748,"height":12}},{"id":"13bd461b-905e-431d-bfd9-f7eb3d1ac613","block_type":"box","text":"will be applied to securities held long and the last ask price will be applied to securities sold short. If no","page_number":249,"box":{"x":116,"y":645,"width":766,"height":12}},{"id":"f5ed567a-f355-4a93-91f5-f8a049f29ecf","block_type":"box","text":"bid or ask price is available on a day on which a Fund values such security, the prior day’s price will be","page_number":249,"box":{"x":117,"y":661,"width":761,"height":12}},{"id":"b04a30af-a28d-4387-80bc-17e4ebd138ca","block_type":"box","text":"used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of the","page_number":249,"box":{"x":117,"y":676,"width":743,"height":12}},{"id":"fe80cec0-731a-44ae-85fb-6d0ae7835fa1","block_type":"box","text":"security, in which case such asset would be treated as a Fair Value Asset (as defined below).","page_number":249,"box":{"x":116,"y":692,"width":692,"height":12}},{"id":"be709732-e73b-42a4-a5a0-2faae62d3ea4","block_type":"box","text":"Fixed-Income Investments.","page_number":249,"box":{"x":117,"y":723,"width":214,"height":9}},{"id":"f4d9e299-6358-4735-94d4-a1f7956a50fb","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by","page_number":249,"box":{"x":338,"y":723,"width":544,"height":12}},{"id":"861e2d02-107e-4d01-a5fe-8079f2b4258b","block_type":"box","text":"dealers or prices (including evaluated prices) supplied by the Fund’s approved independent third-party","page_number":249,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"23bfdbad-234c-4e24-af3e-86369a7967ee","block_type":"box","text":"pricing services, each in accordance with the Valuation Procedures. The pricing services may use","page_number":249,"box":{"x":117,"y":754,"width":725,"height":12}},{"id":"ecbf94c6-f25c-4d30-aac5-ddf20445f4f7","block_type":"box","text":"valuation models that utilize certain inputs and assumptions to derive values, including transaction data","page_number":249,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"cf3642d3-a057-4375-a057-b702d3c3087b","block_type":"box","text":"(e.g., recent representative bids and offers), credit quality information, perceived market movements,","page_number":249,"box":{"x":117,"y":785,"width":746,"height":12}},{"id":"6c85751e-df05-41b8-ad8f-6ee688298238","block_type":"box","text":"news, and other relevant information and by other methods, which may include consideration of: yields","page_number":249,"box":{"x":117,"y":800,"width":761,"height":12}},{"id":"80eb761b-0e8e-4d26-8c0c-2b17ebe01e1a","block_type":"box","text":"or prices of securities of comparable quality, coupon, maturity and type; indications as to values from","page_number":249,"box":{"x":116,"y":816,"width":747,"height":12}},{"id":"82f197c5-748c-4314-9d28-a291c2f8a719","block_type":"box","text":"dealers; general market conditions; and/or other factors and assumptions. Pricing services generally","page_number":249,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"52033016-fe88-44c9-a0a4-3a2efafd672e","block_type":"box","text":"value fixed-income securities assuming orderly transactions of an institutional round lot size, but the","page_number":249,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"835bd407-bc14-408f-8f49-b5443fd74953","block_type":"box","text":"Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain","page_number":249,"box":{"x":117,"y":862,"width":752,"height":12}},{"id":"9d9d7b99-0329-47f6-ae9f-9c2d38e0d252","block_type":"box","text":"asset classes may trade at lower prices than institutional round lots, and the value ultimately realized","page_number":249,"box":{"x":116,"y":878,"width":753,"height":12}},{"id":"e2374e33-011e-41df-8799-0486509079a3","block_type":"box","text":"II-155","page_number":249,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ffc5d0cf-3f53-4ffd-b1e5-d92818db1aa9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":249,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"54b6e70b-d506-4285-9809-b892e70731a4","block_type":"box","text":"when the securities are sold could differ from the prices used by a Fund. The amortized cost method of","page_number":250,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"4e914ea7-9350-4f4a-aadf-40ff0f2e1e81","block_type":"box","text":"valuation may be used with respect to debt obligations with 60 days or less remaining to maturity","page_number":250,"box":{"x":116,"y":103,"width":723,"height":12}},{"id":"12696be4-8214-4f7e-97af-7df77b9fc2bc","block_type":"box","text":"unless such method does not represent fair value. Certain fixed-income investments, including asset","page_number":250,"box":{"x":117,"y":118,"width":750,"height":12}},{"id":"d675d026-4341-42ca-9256-9a0f8f6d8023","block_type":"box","text":"backed and mortgage related securities, may be valued based on valuation models that consider the","page_number":250,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"af015f15-a20c-4039-bc15-87e1e212981f","block_type":"box","text":"estimated cash flows of each tranche of the issuer, establish a benchmark yield and develop an","page_number":250,"box":{"x":116,"y":149,"width":715,"height":12}},{"id":"f0b583f0-d6b5-4d76-be99-05d711e173fb","block_type":"box","text":"estimated tranche specific spread to the benchmark yield based on the unique attributes of the","page_number":250,"box":{"x":116,"y":165,"width":707,"height":12}},{"id":"34e194f2-8410-468d-91e5-90ab44b3fb85","block_type":"box","text":"tranche.","page_number":250,"box":{"x":116,"y":180,"width":65,"height":10}},{"id":"6be7729a-7b56-46c4-bf06-865a00656df6","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":250,"box":{"x":116,"y":211,"width":379,"height":12}},{"id":"fa5b4071-4e70-41e4-bbf2-8025df264665","block_type":"box","text":"Exchange-traded equity options (except ETF","page_number":250,"box":{"x":497,"y":211,"width":342,"height":12}},{"id":"db24a8d7-3e5f-4ea3-9c85-188ce06cc759","block_type":"box","text":"options, equity index options or those that are customized) for which market quotations are readily","page_number":250,"box":{"x":116,"y":227,"width":733,"height":12}},{"id":"ef481baf-2ad2-4226-832b-48fecc5605b4","block_type":"box","text":"available are valued at the mean of the last bid and ask prices as quoted on the Exchange or the board","page_number":250,"box":{"x":116,"y":242,"width":771,"height":12}},{"id":"e958ee25-c971-40f7-abe0-fb43d8470828","block_type":"box","text":"of trade on which such options are traded. In the event that there is no mean price available for an","page_number":250,"box":{"x":116,"y":258,"width":734,"height":11}},{"id":"5782fc8b-143d-41b4-96c9-9d955ba951e0","block_type":"box","text":"exchange-traded equity option held by a Fund on a day on which the Fund values such option, the last","page_number":250,"box":{"x":116,"y":273,"width":766,"height":12}},{"id":"a216961f-4352-4b8a-99e0-607752e1e580","block_type":"box","text":"bid (long positions) or ask (short positions) price, if available, will be used as the value of such option. If","page_number":250,"box":{"x":117,"y":289,"width":771,"height":12}},{"id":"12895632-e0cb-45f4-bcc4-65dc390c6629","block_type":"box","text":"no bid or ask price is available on a day on which a Fund values such option, the prior day’s price will","page_number":250,"box":{"x":117,"y":304,"width":755,"height":12}},{"id":"0ba2325b-a48b-452b-aed9-9e52e48947a8","block_type":"box","text":"be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":250,"box":{"x":117,"y":320,"width":743,"height":12}},{"id":"9cf89bb1-b210-4018-8d6b-5ae2b4c4af9c","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange","page_number":250,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"4615a701-e7ea-43c7-ba93-2ea748044d1d","block_type":"box","text":"traded equity options, ETF options, equity index options and OTC derivatives, may be valued using a","page_number":250,"box":{"x":116,"y":351,"width":755,"height":12}},{"id":"17ee8968-464b-4739-a605-a2217d355b74","block_type":"box","text":"mathematical model which may incorporate a number of market data factors. Financial futures","page_number":250,"box":{"x":117,"y":366,"width":703,"height":12}},{"id":"7cd4a05b-3bfe-49b6-8b80-c69dd7cd787f","block_type":"box","text":"contracts and options thereon, which are traded on exchanges, are valued at their last sale price or","page_number":250,"box":{"x":116,"y":382,"width":741,"height":12}},{"id":"7d49a8b1-cc06-415c-9075-33fa8a40520a","block_type":"box","text":"settle price as of the close of such exchanges. Swap agreements and other derivatives are generally","page_number":250,"box":{"x":116,"y":397,"width":752,"height":12}},{"id":"65d999b1-6650-4e65-b399-46ef84514c06","block_type":"box","text":"valued daily based upon quotations from market makers or by a pricing service in accordance with the","page_number":250,"box":{"x":116,"y":413,"width":763,"height":12}},{"id":"6a05eee3-c0c7-4f9e-9454-a442e84aa8d7","block_type":"box","text":"Valuation Procedures.","page_number":250,"box":{"x":116,"y":428,"width":170,"height":10}},{"id":"c9250b1e-825c-4028-9ecb-c4ab57723b45","block_type":"box","text":"Underlying Funds.","page_number":250,"box":{"x":117,"y":459,"width":145,"height":12}},{"id":"4a49e97f-3b5b-4b0a-9326-7c538c559f4e","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued","page_number":250,"box":{"x":263,"y":459,"width":609,"height":12}},{"id":"6a4432c4-fca5-4154-bfb0-4cd45b2168a3","block_type":"box","text":"at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their","page_number":250,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"4961b90c-5eda-4393-9f7c-2b5aa433e522","block_type":"box","text":"most recent closing price.","page_number":250,"box":{"x":117,"y":490,"width":194,"height":12}},{"id":"15adafcf-6e36-4793-b804-462a3090a475","block_type":"box","text":"General Valuation Information.","page_number":250,"box":{"x":116,"y":521,"width":244,"height":10}},{"id":"72e60404-0ad7-45f7-810c-25baaea0ccdc","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker","page_number":250,"box":{"x":361,"y":521,"width":520,"height":12}},{"id":"053ece3a-6bb1-4982-8912-00a61133d8a4","block_type":"box","text":"dealers or market makers to value each Fund’s securities and other assets and liabilities are based on","page_number":250,"box":{"x":116,"y":537,"width":764,"height":9}},{"id":"83241a4e-5c3a-4c53-bb66-7d99e05d131a","block_type":"box","text":"information available at the time the Fund values its assets and liabilities. In the event that a pricing","page_number":250,"box":{"x":117,"y":552,"width":740,"height":12}},{"id":"372fd295-631a-4d0f-ac9e-9ec8bb07acd4","block_type":"box","text":"service quotation is revised or updated subsequent to the day on which the Fund valued such security,","page_number":250,"box":{"x":116,"y":568,"width":767,"height":12}},{"id":"6b6ed430-c33b-42d5-840e-4e55e27c447c","block_type":"box","text":"the revised pricing service quotation generally will be applied prospectively. Such determination will be","page_number":250,"box":{"x":116,"y":583,"width":764,"height":12}},{"id":"66edc2f6-d1ba-4ec9-a2fe-186c7abc712d","block_type":"box","text":"made considering pertinent facts and circumstances surrounding the revision.","page_number":250,"box":{"x":117,"y":599,"width":581,"height":12}},{"id":"d04dde26-acb2-43a1-9007-aac5e8f15c5d","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third","page_number":250,"box":{"x":117,"y":622,"width":723,"height":12}},{"id":"d0c13f7a-6889-4879-a176-0e9302a2d647","block_type":"box","text":"party pricing services, which may use, without limitation, evaluated pricing methods that take into","page_number":250,"box":{"x":117,"y":638,"width":723,"height":11}},{"id":"b376c119-51fb-43f1-8a44-8af59c3ded20","block_type":"box","text":"consideration market indexes, matrices, yield curves and other specified inputs and assumptions. This","page_number":250,"box":{"x":116,"y":653,"width":764,"height":12}},{"id":"938b7775-77a3-4551-919c-0ddbc9732938","block_type":"box","text":"may result in the assets being valued at a price different from the price that would have been","page_number":250,"box":{"x":117,"y":668,"width":687,"height":12}},{"id":"3531028d-e10b-4ad1-9336-8d6b7ff08387","block_type":"box","text":"determined had the evaluated pricing method not been used. The price the Fund could receive upon","page_number":250,"box":{"x":116,"y":684,"width":744,"height":12}},{"id":"65018b79-09bb-4e30-97d8-3135cacb5a19","block_type":"box","text":"the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment,","page_number":250,"box":{"x":116,"y":699,"width":742,"height":13}},{"id":"8a654c78-d2fd-4d48-b98b-d098f884e983","block_type":"box","text":"particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":250,"box":{"x":117,"y":715,"width":718,"height":12}},{"id":"1a7cc23a-bc0f-4632-b063-a90ba7c35f2f","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received","page_number":250,"box":{"x":117,"y":731,"width":724,"height":12}},{"id":"3406a98a-a28b-4c2b-beff-dd6a2606f0f0","block_type":"box","text":"upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could","page_number":250,"box":{"x":117,"y":746,"width":747,"height":12}},{"id":"48832404-959b-4340-9d98-da8485447475","block_type":"box","text":"realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The","page_number":250,"box":{"x":117,"y":761,"width":758,"height":13}},{"id":"66edace4-f140-40c7-bf7d-f9b0e1e7bd38","block_type":"box","text":"Fund’s ability to value its investment may also be impacted by technological issues and/or errors by","page_number":250,"box":{"x":117,"y":777,"width":738,"height":12}},{"id":"e959da06-790c-4ecc-a39f-7d596ae6bfac","block_type":"box","text":"pricing services or other third-party service providers.","page_number":250,"box":{"x":117,"y":793,"width":393,"height":12}},{"id":"0cd64efc-101e-476b-9a74-c4d2e2135e49","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security","page_number":250,"box":{"x":117,"y":823,"width":761,"height":13}},{"id":"4b78c41f-b36f-4c0e-9fcf-1d2421d54355","block_type":"box","text":"which is deemed not to be representative of the fair market value of such security, the security will be","page_number":250,"box":{"x":116,"y":839,"width":756,"height":12}},{"id":"fd649a3f-83e0-4ed6-bcc0-8a9d60103aa8","block_type":"box","text":"valued by, under the direction of or in accordance with a method approved by BlackRock, the Fund’s","page_number":250,"box":{"x":116,"y":854,"width":752,"height":13}},{"id":"26a4aec6-ea29-4e4c-aaf9-27d2c766f760","block_type":"box","text":"valuation designee, as reflecting fair value. All other assets and liabilities (including securities for which","page_number":250,"box":{"x":116,"y":870,"width":767,"height":12}},{"id":"3782038c-a79a-4c0d-a781-e66c2f3de756","block_type":"box","text":"II-156","page_number":250,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ccf2ade6-626b-4a3a-a183-ca01aad046cf","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":250,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ca276a17-8855-4ae6-86a6-bdf32db01b2e","block_type":"box","text":"market quotations are not readily available) held by a Fund (including restricted securities and private","page_number":251,"box":{"x":117,"y":87,"width":756,"height":12}},{"id":"4cc4d60c-8e26-4d70-bf7c-792db04ff3e4","block_type":"box","text":"market investments, as applicable) are valued at fair value as determined in good faith by BlackRock","page_number":251,"box":{"x":117,"y":102,"width":752,"height":13}},{"id":"88ffc05c-6fe8-43bd-bc16-6811f413a7c2","block_type":"box","text":"pursuant to the Valuation Procedures. Any assets and liabilities which are denominated in a foreign","page_number":251,"box":{"x":117,"y":118,"width":740,"height":12}},{"id":"4c6917e6-32fa-478e-8044-64740bcc920d","block_type":"box","text":"currency are translated into U.S. dollars at the prevailing market rates.","page_number":251,"box":{"x":116,"y":134,"width":527,"height":12}},{"id":"f00b7f03-e7cd-4d08-aab6-3ea0594ef2ce","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets","page_number":251,"box":{"x":117,"y":165,"width":754,"height":12}},{"id":"478092b8-1c71-497f-81b6-acff9dc6e9d4","block_type":"box","text":"on days on which a Fund’s NAV is not calculated. In","page_number":251,"box":{"x":116,"y":180,"width":392,"height":12}},{"id":"7494ed0c-630e-49c5-b3c5-272333076b37","block_type":"box","text":"such cases, the NAV of a Fund’s shares may be","page_number":251,"box":{"x":508,"y":180,"width":364,"height":12}},{"id":"47d7fc75-5cc3-49ca-a726-05311a4a82b2","block_type":"box","text":"significantly affected on days when investors can neither purchase nor redeem shares of the Fund.","page_number":251,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"94d020b3-a36e-46eb-ad51-1a0e00a907ec","block_type":"box","text":"Fair Value.","page_number":251,"box":{"x":117,"y":227,"width":83,"height":9}},{"id":"a7d88631-c486-40bf-b75a-fb1d9899b827","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be","page_number":251,"box":{"x":201,"y":227,"width":639,"height":12}},{"id":"8974dea1-3dc0-41f2-9bfa-8d88a1a814b2","block_type":"box","text":"unreliable, a Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are","page_number":251,"box":{"x":117,"y":242,"width":749,"height":12}},{"id":"bdb2519d-263d-469d-9426-b80c2aedcf07","block_type":"box","text":"valued by BlackRock in accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the","page_number":251,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"a9042965-aacb-4d6e-98f1-a23c2674ab40","block_type":"box","text":"Investment Company Act, the Board of Directors has designated BlackRock as the valuation designee","page_number":251,"box":{"x":117,"y":273,"width":763,"height":12}},{"id":"7b6f7ab9-1086-478b-86a0-463da8b2f5f5","block_type":"box","text":"for the respective Funds for which it serves as investment adviser. BlackRock may reasonably","page_number":251,"box":{"x":116,"y":289,"width":704,"height":12}},{"id":"24b30447-a9ed-456d-a1b4-e951b3e8d0e6","block_type":"box","text":"conclude that a market quotation is not readily available or is unreliable if, among other things, a","page_number":251,"box":{"x":116,"y":304,"width":718,"height":12}},{"id":"89b7946b-93a4-4d44-983d-0aa8e7393d23","block_type":"box","text":"security or other asset or liability does not have a price source due to its complete lack of trading, if","page_number":251,"box":{"x":116,"y":320,"width":739,"height":12}},{"id":"72da661b-7541-4d60-9c2e-6622641d0f5d","block_type":"box","text":"BlackRock believes a market quotation from a broker-dealer or other source is unreliable (e.g., where it","page_number":251,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"0717bdf9-bf8c-4747-9763-13f4981001f4","block_type":"box","text":"varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":251,"box":{"x":116,"y":351,"width":765,"height":12}},{"id":"d6bc8857-665e-4a0e-a2c3-663ae596f666","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or","page_number":251,"box":{"x":116,"y":366,"width":735,"height":12}},{"id":"44d99a06-8a0c-4197-b4ce-5efa6a76c1c0","block_type":"box","text":"liability is only thinly traded or due to the occurrence of a significant event subsequent to the most","page_number":251,"box":{"x":117,"y":382,"width":728,"height":12}},{"id":"dfaf5f70-02ea-4dbf-bdf3-09d427774916","block_type":"box","text":"recent market quotation. For this purpose, a “significant event” is deemed to occur if BlackRock","page_number":251,"box":{"x":117,"y":397,"width":711,"height":12}},{"id":"affc71c3-f236-4195-ad42-981eed0d8d31","block_type":"box","text":"determines, in its reasonable business judgment, that an event has occurred after the close of trading","page_number":251,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"cc31d44a-bedb-4057-8946-cd9c383f4d0e","block_type":"box","text":"for an asset or liability but prior to or at the time of pricing a Fund’s assets or liabilities, is likely to cause","page_number":251,"box":{"x":116,"y":428,"width":771,"height":12}},{"id":"f27beb1b-a39f-4506-b552-cad318127ded","block_type":"box","text":"a material change to the last exchange closing price or closing market price of one or more assets held","page_number":251,"box":{"x":116,"y":444,"width":770,"height":12}},{"id":"87f019e3-b0fd-46f3-bcaa-e185a3838c82","block_type":"box","text":"by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the primary","page_number":251,"box":{"x":117,"y":459,"width":709,"height":12}},{"id":"fa178506-aa78-401f-8f59-a911fbf48d74","block_type":"box","text":"exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued","page_number":251,"box":{"x":116,"y":475,"width":748,"height":12}},{"id":"e4a9a510-7541-4cf7-9d20-cea1adc0cc06","block_type":"box","text":"using the prior day’s price, provided that BlackRock is not aware of any significant event or other","page_number":251,"box":{"x":117,"y":490,"width":720,"height":12}},{"id":"3654d060-01a1-4f5e-9d2f-09045877d306","block_type":"box","text":"information that would cause such price to no longer reflect the fair value of the asset or liability, in","page_number":251,"box":{"x":117,"y":506,"width":733,"height":12}},{"id":"d3a53df0-7c23-4fa2-b4d5-adc197894571","block_type":"box","text":"which case such asset or liability would be treated as a Fair Value Asset. For certain foreign assets, a","page_number":251,"box":{"x":116,"y":521,"width":759,"height":12}},{"id":"76ab3755-a2fc-4661-b161-ee285d0eb251","block_type":"box","text":"third-party vendor supplies evaluated, systematic fair value pricing based upon the movement of a","page_number":251,"box":{"x":116,"y":537,"width":733,"height":12}},{"id":"84acccc9-f08b-4dcf-8039-2bacce3a3466","block_type":"box","text":"proprietary multi-factor model after the relevant foreign markets have closed. This systematic fair value","page_number":251,"box":{"x":117,"y":552,"width":767,"height":12}},{"id":"0c7701f4-1e45-4055-b028-904c45472cea","block_type":"box","text":"pricing methodology is designed to correlate the prices of foreign assets in one or more non-U.S.","page_number":251,"box":{"x":117,"y":568,"width":723,"height":12}},{"id":"80a8ba3f-d326-45cc-8e12-68921ee8d360","block_type":"box","text":"markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":251,"box":{"x":117,"y":583,"width":756,"height":12}},{"id":"d7c9b6d3-3960-4f20-a4b8-bc08d84bcdb1","block_type":"box","text":"pricing time.","page_number":251,"box":{"x":117,"y":599,"width":94,"height":12}},{"id":"61947aa2-cd89-4906-b606-4e585fbd796d","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by","page_number":251,"box":{"x":117,"y":630,"width":714,"height":12}},{"id":"9f443952-b5d8-4cae-a11c-a363ce672001","block_type":"box","text":"investment type and significant inputs used in the fair valuation of Fund assets or liabilities. In addition,","page_number":251,"box":{"x":117,"y":645,"width":765,"height":12}},{"id":"e3d3cfd2-69a2-41f6-87aa-1bc433c3dee2","block_type":"box","text":"the Funds’ accounting agent assists BlackRock by periodically endeavoring to confirm the prices it","page_number":251,"box":{"x":116,"y":661,"width":729,"height":12}},{"id":"34b09525-e903-4e3d-9e99-65967f7dec96","block_type":"box","text":"receives from all third-party pricing services, index providers and broker-dealers. BlackRock regularly","page_number":251,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"e985805f-92c3-4d5b-8262-ffe94a107601","block_type":"box","text":"evaluates the values assigned to the securities and other assets and liabilities of the Funds.","page_number":251,"box":{"x":116,"y":692,"width":679,"height":12}},{"id":"007c78b9-8b41-4382-8a69-095da64d4602","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a","page_number":251,"box":{"x":116,"y":723,"width":743,"height":12}},{"id":"21de4bb8-e238-4f52-933d-a21306339754","block_type":"box","text":"Fund might reasonably expect to receive from the current sale of that asset or liability in an","page_number":251,"box":{"x":117,"y":738,"width":672,"height":12}},{"id":"9b72fe3d-ef77-40e6-855f-8c105576a90e","block_type":"box","text":"arm’s-length transaction on the date on which the asset or liability is being valued, and does not seek","page_number":251,"box":{"x":116,"y":754,"width":751,"height":12}},{"id":"90ed83cd-de58-4a81-8869-aab6ebcf6660","block_type":"box","text":"to determine the price a Fund might reasonably expect to receive for selling an asset or liability at a","page_number":251,"box":{"x":116,"y":769,"width":736,"height":12}},{"id":"1caf6fd4-d916-4089-90bf-bf0635613bca","block_type":"box","text":"later time or if it holds the asset or liability to maturity. Fair value determinations will be based upon all","page_number":251,"box":{"x":117,"y":785,"width":753,"height":12}},{"id":"4b90ee61-39bd-4d22-bc7b-c514e0b03d56","block_type":"box","text":"available factors that BlackRock deems relevant at the time of the determination, and may be based on","page_number":251,"box":{"x":116,"y":800,"width":765,"height":12}},{"id":"9b4cfe86-ea25-4ddb-ad45-e32399f29cfa","block_type":"box","text":"analytical values determined by BlackRock using proprietary or third-party valuation models.","page_number":251,"box":{"x":116,"y":816,"width":683,"height":12}},{"id":"ace7dc31-a910-48e7-814b-ac7b9fc31aed","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining","page_number":251,"box":{"x":117,"y":847,"width":764,"height":12}},{"id":"d2ed6a4f-21bf-4f04-be21-7c1b645fa515","block_type":"box","text":"the fair value of an investment, one or more fair value methodologies may be used (depending on","page_number":251,"box":{"x":116,"y":862,"width":730,"height":12}},{"id":"4d16010b-68b0-4061-a366-d5c68f8d671a","block_type":"box","text":"certain factors, including the asset type). For example, the investment may be initially priced based on","page_number":251,"box":{"x":116,"y":878,"width":762,"height":12}},{"id":"11f3b0a0-3f91-41a2-bfc5-3ca31c7dd5e8","block_type":"box","text":"II-157","page_number":251,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"38c2c86c-125d-4c35-9c0f-257e44d63c87","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":251,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fc343f48-0d8e-4ab2-a776-8d888561d73a","block_type":"box","text":"the original cost of the investment or, alternatively, using proprietary or third-party models that may rely","page_number":252,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"aecea7ea-7f3d-45b2-a46e-621a1f8b4c77","block_type":"box","text":"upon one or more unobservable inputs. Prices of actual, executed or historical transactions in the","page_number":252,"box":{"x":117,"y":102,"width":726,"height":12}},{"id":"1964940b-b693-454c-907d-67a0d5ccd2bd","block_type":"box","text":"relevant investment (or comparable instruments) or, where appropriate, an appraisal by a third-party","page_number":252,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"753e1f0e-6544-46d0-873c-caa75c5bf703","block_type":"box","text":"experienced in the valuation of similar instruments, may also be used as a basis for establishing the","page_number":252,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"9c7cb284-5904-49eb-88f0-420b65890cd7","block_type":"box","text":"fair value of an investment.","page_number":252,"box":{"x":116,"y":149,"width":206,"height":10}},{"id":"f862ea6f-5aff-475b-98d0-4cb730b853f7","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those","page_number":252,"box":{"x":116,"y":178,"width":738,"height":13}},{"id":"20507cde-50c6-451e-8305-e44b875baa8d","block_type":"box","text":"assets or liabilities could have been sold during the period in which the particular fair values were used","page_number":252,"box":{"x":116,"y":194,"width":767,"height":12}},{"id":"9b2cf50e-6b63-456a-8d9e-e618e069d8c6","block_type":"box","text":"in determining a Fund’s NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time","page_number":252,"box":{"x":117,"y":209,"width":752,"height":13}},{"id":"849e583b-7893-4017-9196-d911ddef1d13","block_type":"box","text":"when a holding or holdings are valued at fair value, may have the effect of diluting or increasing the","page_number":252,"box":{"x":116,"y":225,"width":742,"height":12}},{"id":"278d1cf9-c6b0-46f9-a916-3c545599639d","block_type":"box","text":"economic interest of existing shareholders.","page_number":252,"box":{"x":116,"y":240,"width":323,"height":13}},{"id":"50f549db-416f-4b2f-a3d6-08ce239b29ee","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting","page_number":252,"box":{"x":117,"y":270,"width":749,"height":12}},{"id":"d4cebb60-1379-40d0-99cb-0236c7a0dc9e","block_type":"box","text":"principles generally accepted in the United States of America (“US GAAP”), follow the requirements for","page_number":252,"box":{"x":117,"y":285,"width":767,"height":13}},{"id":"885803a3-7a7b-498e-ae83-0a0e2304fca4","block_type":"box","text":"valuation set forth in Financial Accounting Standards Board Accounting Standards Codification Topic","page_number":252,"box":{"x":116,"y":301,"width":753,"height":12}},{"id":"fb6ce5ed-f445-4c41-a660-0fa8efffe6b6","block_type":"box","text":"820, “Fair Value Measurements and Disclosures” (“ASC 820”), which defines and establishes a","page_number":252,"box":{"x":116,"y":316,"width":712,"height":13}},{"id":"f2c0c5bd-1e8e-4525-9493-187ce6601a42","block_type":"box","text":"framework for measuring fair value under US GAAP and expands financial statement disclosure","page_number":252,"box":{"x":116,"y":332,"width":717,"height":12}},{"id":"00124511-18b6-430c-9d68-db6b0253c289","block_type":"box","text":"requirements relating to fair value measurements.","page_number":252,"box":{"x":117,"y":347,"width":374,"height":13}},{"id":"d983364a-d48a-4153-86e0-8a695d7d66d9","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they","page_number":252,"box":{"x":117,"y":377,"width":747,"height":12}},{"id":"1666a608-f099-44d0-8d26-8e93359a3e0e","block_type":"box","text":"invest are evolving. Such changes may adversely affect a Fund. For example, the evolution of rules","page_number":252,"box":{"x":117,"y":392,"width":743,"height":13}},{"id":"544579b8-83ee-44d2-a382-2e8f3ab7416b","block_type":"box","text":"governing the determination of the fair market value of assets or liabilities, to the extent such rules","page_number":252,"box":{"x":116,"y":408,"width":733,"height":12}},{"id":"417f2461-9446-4630-a074-9ea5f311b0d0","block_type":"box","text":"become more stringent, would tend to increase the cost and/or reduce the availability of third-party","page_number":252,"box":{"x":117,"y":423,"width":735,"height":13}},{"id":"a097160c-cecc-4296-8fce-c20b1ae4f4ff","block_type":"box","text":"determinations of fair market value. This may in turn increase the costs associated with selling assets","page_number":252,"box":{"x":116,"y":439,"width":758,"height":12}},{"id":"e4973ab8-6034-4472-bda2-f293a0384444","block_type":"box","text":"or affect their liquidity due to a Fund’s inability to obtain a third-party determination of fair market value.","page_number":252,"box":{"x":116,"y":454,"width":768,"height":13}},{"id":"5efa6439-106c-4850-9a14-1c09f481b004","block_type":"box","text":"Computation of Offering Price Per Share","page_number":252,"box":{"x":116,"y":484,"width":328,"height":12}},{"id":"9ed20093-7a70-4185-a07c-6676b320dbe6","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the","page_number":252,"box":{"x":116,"y":506,"width":710,"height":12}},{"id":"f4ff887a-5ba5-46a0-8d64-248aa6ad6b18","block_type":"box","text":"computation of the offering price for shares of your Fund.","page_number":252,"box":{"x":116,"y":522,"width":429,"height":12}},{"id":"1aad267f-d540-4590-8b28-9c85308c30a5","block_type":"box","text":"P","page_number":252,"box":{"x":337,"y":565,"width":10,"height":10}},{"id":"ede6da36-1e35-49f7-bb70-0234684698ba","block_type":"box","text":"ORTFOLIO","page_number":252,"box":{"x":348,"y":568,"width":69,"height":7}},{"id":"a5e76e2f-6478-4e63-ad9a-af0fe9890dd0","block_type":"box","text":"T","page_number":252,"box":{"x":418,"y":565,"width":14,"height":10}},{"id":"549c578d-cc70-4c04-a304-1c39ebb68c5a","block_type":"box","text":"RANSACTIONS","page_number":252,"box":{"x":434,"y":568,"width":98,"height":7}},{"id":"660738ae-afac-465e-99ac-b85398a9c4f3","block_type":"box","text":"AND","page_number":252,"box":{"x":538,"y":568,"width":28,"height":7}},{"id":"c8b871e3-954c-423d-8ddb-0ae4d6c2c979","block_type":"box","text":"B","page_number":252,"box":{"x":567,"y":565,"width":16,"height":10}},{"id":"b7082b93-d401-427a-9576-64be5118af5a","block_type":"box","text":"ROKERAGE","page_number":252,"box":{"x":585,"y":568,"width":77,"height":7}},{"id":"af0f6d32-3246-47f0-9ba3-4ccaf65ce2bc","block_type":"box","text":"Transactions in Portfolio Securities","page_number":252,"box":{"x":116,"y":595,"width":288,"height":9}},{"id":"fb10b1b8-2711-43dd-a992-3e5203e42c8f","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the","page_number":252,"box":{"x":116,"y":617,"width":738,"height":12}},{"id":"c44a6cfb-666b-4e78-af3a-a513b71aad0b","block_type":"box","text":"execution of a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not","page_number":252,"box":{"x":116,"y":633,"width":718,"height":12}},{"id":"d1e8e85b-4d3e-4829-a9a7-8658850959ec","block_type":"box","text":"execute transactions through any particular broker or dealer, but seeks to obtain the best net results for","page_number":252,"box":{"x":116,"y":648,"width":772,"height":12}},{"id":"89747100-1b21-4112-842f-5c2020b0c8ec","block_type":"box","text":"the Fund, taking into account certain factors set out below. While BlackRock generally seeks","page_number":252,"box":{"x":116,"y":664,"width":687,"height":12}},{"id":"598d1a87-93ef-4dbc-980b-34ab434cb224","block_type":"box","text":"reasonable trade execution costs, a Fund does not necessarily pay the lowest spread or commission","page_number":252,"box":{"x":117,"y":679,"width":746,"height":12}},{"id":"c557f6ac-25d7-47de-9b03-edc51ef68cb3","block_type":"box","text":"available, and payment of the lowest commission or spread is not necessarily consistent with obtaining","page_number":252,"box":{"x":116,"y":695,"width":762,"height":12}},{"id":"89322fec-2cae-4cc2-9098-c778eaffc0fd","block_type":"box","text":"the best price and execution in particular transactions. Subject to applicable legal requirements,","page_number":252,"box":{"x":116,"y":710,"width":708,"height":12}},{"id":"e8b90dfb-14f0-4019-8203-ca9e68f88d1b","block_type":"box","text":"BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":252,"box":{"x":117,"y":726,"width":692,"height":12}},{"id":"aea2fe35-090c-4d22-a765-612abe9c1c96","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund","page_number":252,"box":{"x":117,"y":741,"width":752,"height":12}},{"id":"69615e7b-22e8-4e2e-86d0-136d7f0abbc3","block_type":"box","text":"to pay a higher commission than other brokers would charge if BlackRock determines in good faith that","page_number":252,"box":{"x":116,"y":757,"width":765,"height":12}},{"id":"002989a8-3c98-4781-af42-f4bd702a2f21","block_type":"box","text":"the commission is reasonable in relation to the services provided.","page_number":252,"box":{"x":116,"y":772,"width":485,"height":12}},{"id":"4454d663-7b7a-4a9c-a387-fd1bd7d1273b","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial","page_number":252,"box":{"x":117,"y":802,"width":733,"height":12}},{"id":"af7a9252-b4a4-47a9-9ebe-4dbca5951753","block_type":"box","text":"interests of a Master Portfolio, it is expected that all transactions in portfolio securities will be entered","page_number":252,"box":{"x":117,"y":817,"width":745,"height":12}},{"id":"cb26ac10-b7ec-4d63-8678-07c46258422f","block_type":"box","text":"into by the Master Portfolio.","page_number":252,"box":{"x":117,"y":833,"width":208,"height":12}},{"id":"ac253242-f149-4bb0-9255-35d3586e4ced","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to","page_number":252,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"4678f63d-d49b-4c89-804c-c27fa7094767","block_type":"box","text":"obtain the best price and most favorable execution for a Fund, taking into account a variety of factors","page_number":252,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"d3d85472-b402-4b1f-936d-6b9d18aec55b","block_type":"box","text":"II-158","page_number":252,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"49808b8f-f56e-45ad-be0f-d11e306e48e1","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":252,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4c7338a0-8f61-40ed-9670-54fe3327f1e5","block_type":"box","text":"including: (i) the size, nature and character of the security or instrument being traded and the markets","page_number":253,"box":{"x":117,"y":87,"width":758,"height":12}},{"id":"414d6e75-f1d4-4656-ab04-93560438cac5","block_type":"box","text":"in which it is purchased or sold; (ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of","page_number":253,"box":{"x":117,"y":102,"width":764,"height":13}},{"id":"afa6fb8f-f4ae-412b-bd44-56b75ad34b8b","block_type":"box","text":"the expected commission rates and spreads currently available; (iv) the activity existing and expected","page_number":253,"box":{"x":116,"y":118,"width":759,"height":12}},{"id":"779ccfe9-f8a3-4aa8-a5c7-323b75e3592a","block_type":"box","text":"in the market for the particular security or instrument, including any anticipated execution difficulties;","page_number":253,"box":{"x":117,"y":134,"width":746,"height":12}},{"id":"2e1baefd-59d3-4655-bb8b-00113f96b397","block_type":"box","text":"(v) the full range of brokerage services provided; (vi) the broker’s or dealer’s capital; (vii) the quality of","page_number":253,"box":{"x":117,"y":149,"width":759,"height":12}},{"id":"7419fef6-62dd-4eea-9313-0a2d5c11545a","block_type":"box","text":"research and research services provided; (viii) the reasonableness of the commission, dealer spread","page_number":253,"box":{"x":117,"y":165,"width":752,"height":12}},{"id":"1d1b89c8-f04e-42da-9355-7e4bff4a4c93","block_type":"box","text":"or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual or apparent","page_number":253,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"84d9e27e-faff-4ba2-810b-19e1727bf318","block_type":"box","text":"operational problems of a broker or dealer.","page_number":253,"box":{"x":116,"y":196,"width":323,"height":11}},{"id":"8c43279d-335f-471c-9e73-5e80178dc5c6","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain","page_number":253,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"07b6208d-23c3-48d2-8b52-7199acd40c0a","block_type":"box","text":"circumstances to cause an account to pay a broker or dealer a commission for effecting a transaction","page_number":253,"box":{"x":116,"y":242,"width":757,"height":12}},{"id":"da974d37-946c-419e-83a5-556ee7d285ca","block_type":"box","text":"that exceeds the amount another broker or dealer would have charged for effecting the same","page_number":253,"box":{"x":116,"y":258,"width":696,"height":12}},{"id":"4f82b934-a8e7-4713-8f58-b5e45a8c8fc1","block_type":"box","text":"transaction in recognition of the value of brokerage and research services provided by that broker or","page_number":253,"box":{"x":116,"y":273,"width":748,"height":12}},{"id":"78ff908e-da4d-4231-9c5a-89d33021f9d6","block_type":"box","text":"dealer. This includes commissions paid on riskless principal transactions under certain conditions.","page_number":253,"box":{"x":116,"y":289,"width":732,"height":12}},{"id":"efad2ff5-7eb4-44f5-819a-c8dcf2089b42","block_type":"box","text":"Brokerage and research services include: (1) furnishing advice as to the value of securities, including","page_number":253,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"e23fc993-ea77-4e06-b350-055178b9613a","block_type":"box","text":"pricing and appraisal advice, credit analysis, risk measurement analysis, performance and other","page_number":253,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"a1b4293d-4cfe-482f-b05a-dee84a0608cb","block_type":"box","text":"analysis, as well as the advisability of investing in, purchasing or selling securities, and the availability","page_number":253,"box":{"x":116,"y":335,"width":758,"height":12}},{"id":"5a043fc6-5659-4dc4-95ad-aca8a7d6b2f9","block_type":"box","text":"of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning","page_number":253,"box":{"x":116,"y":351,"width":725,"height":12}},{"id":"567fa733-f13f-4a74-961d-163835c21bbf","block_type":"box","text":"issuers, industries, securities, economic factors and trends, portfolio strategy, and the performance of","page_number":253,"box":{"x":117,"y":366,"width":757,"height":12}},{"id":"640ad7d4-5736-4c17-a85f-a4fe8d11d6b8","block_type":"box","text":"accounts; and (3) effecting securities transactions and performing functions incidental to securities","page_number":253,"box":{"x":116,"y":382,"width":734,"height":12}},{"id":"9721913e-436a-4eea-b489-225e27700207","block_type":"box","text":"transactions (such as clearance, settlement, and custody). BlackRock believes that access to","page_number":253,"box":{"x":116,"y":397,"width":698,"height":12}},{"id":"e4c67d59-f024-4e93-b8ee-f2e4cb8d9599","block_type":"box","text":"independent investment research is beneficial to its investment decision-making processes and,","page_number":253,"box":{"x":117,"y":413,"width":716,"height":12}},{"id":"296478dc-0b2d-475b-a62e-b8ec5efa4c49","block_type":"box","text":"therefore, to the Funds.","page_number":253,"box":{"x":116,"y":428,"width":180,"height":11}},{"id":"3a6e13f8-33f7-4312-8706-34870bb7043a","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements","page_number":253,"box":{"x":117,"y":459,"width":739,"height":12}},{"id":"46a636f0-58a2-4549-af9e-efcb97fe4082","block_type":"box","text":"under which BlackRock may execute transactions through a broker-dealer and request that the broker","page_number":253,"box":{"x":117,"y":475,"width":762,"height":12}},{"id":"6b76c998-61b2-44a7-a0d2-ae2737bd1bc6","block_type":"box","text":"dealer allocate a portion of the commissions or commission credits to another firm that provides","page_number":253,"box":{"x":116,"y":490,"width":715,"height":12}},{"id":"6ac74479-2314-4971-9824-6b5746a8a858","block_type":"box","text":"research to BlackRock. BlackRock believes that research services obtained through soft dollar or","page_number":253,"box":{"x":117,"y":506,"width":725,"height":12}},{"id":"2de3bcc6-8c35-4da9-9798-3e6e12981189","block_type":"box","text":"commission sharing arrangements enhance its investment decision-making capabilities, thereby","page_number":253,"box":{"x":116,"y":521,"width":718,"height":12}},{"id":"7fe867a1-ed67-41be-994a-89145278aea4","block_type":"box","text":"increasing the prospects for higher investment returns. BlackRock will engage only in soft dollar or","page_number":253,"box":{"x":117,"y":537,"width":733,"height":12}},{"id":"670e22e4-b2d6-4f39-9d46-14b2fc1748bc","block_type":"box","text":"commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":253,"box":{"x":116,"y":552,"width":744,"height":12}},{"id":"137a49d0-fab9-4193-8b58-86f0dda051d7","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers,","page_number":253,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"2b32b7f8-d152-4584-99b7-2e1f54240d0d","block_type":"box","text":"including BIL, pay for any research out of their own resources and not through soft dollars or","page_number":253,"box":{"x":117,"y":583,"width":689,"height":12}},{"id":"af944ee2-32b8-44f4-b3fd-7c4f230ad9bd","block_type":"box","text":"commission sharing arrangements. BlackRock regularly evaluates the soft dollar products and services","page_number":253,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"dd9eb201-99ca-42f2-a628-874ce7af01a2","block_type":"box","text":"utilized, as well as the overall soft dollar and commission sharing arrangements to ensure that trades","page_number":253,"box":{"x":117,"y":614,"width":753,"height":12}},{"id":"7a92e3a5-d5e2-4cf5-9a16-543c70d5408e","block_type":"box","text":"are executed by firms that are regarded as best able to execute trades for client accounts, while at the","page_number":253,"box":{"x":116,"y":630,"width":764,"height":12}},{"id":"7d427e5c-f7bb-48c2-afcb-d3c83280bcc1","block_type":"box","text":"same time providing access to the research and other services BlackRock views as impactful to its","page_number":253,"box":{"x":116,"y":645,"width":737,"height":12}},{"id":"9f1541b3-5d0c-43dd-af9d-c9c50ddc7c58","block_type":"box","text":"trading results.","page_number":253,"box":{"x":116,"y":661,"width":109,"height":12}},{"id":"d7b91748-0c86-4f31-a9e9-d37a6ae806ba","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including","page_number":253,"box":{"x":117,"y":692,"width":752,"height":12}},{"id":"6a663d77-ba63-4424-8bf7-a752b8482096","block_type":"box","text":"research (whether prepared by the broker-dealer or prepared by a third-party and provided to","page_number":253,"box":{"x":117,"y":707,"width":691,"height":12}},{"id":"d01fb8bf-d9e7-438c-939d-8357193315ba","block_type":"box","text":"BlackRock by the broker-dealer) and execution or brokerage services within applicable rules and","page_number":253,"box":{"x":117,"y":723,"width":716,"height":12}},{"id":"3cc86785-c56b-4248-9204-40c6c4070faa","block_type":"box","text":"BlackRock’s policies to the extent that such permitted services do not compromise BlackRock’s ability","page_number":253,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"a7274126-4bb3-45fa-b38a-02b1bd476d19","block_type":"box","text":"to seek to obtain best execution. In this regard, the portfolio management investment and/or trading","page_number":253,"box":{"x":116,"y":754,"width":738,"height":12}},{"id":"1d706eff-69f6-4b73-b3b2-92e6c30361f7","block_type":"box","text":"teams may consider a variety of factors, including the degree to which the broker-dealer: (a) provides","page_number":253,"box":{"x":116,"y":769,"width":751,"height":12}},{"id":"a6635dcd-67c4-4677-a5f1-16876488a17a","block_type":"box","text":"access to company management; (b) provides access to their analysts; (c) provides meaningful/","page_number":253,"box":{"x":116,"y":785,"width":714,"height":12}},{"id":"1730618b-bed7-4dab-8bd7-fe608b72a600","block_type":"box","text":"insightful research notes on companies or other potential investments; (d) facilitates calls on which","page_number":253,"box":{"x":117,"y":800,"width":729,"height":12}},{"id":"c2fc0397-48b4-40cf-a766-efd02bb179e9","block_type":"box","text":"meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":253,"box":{"x":117,"y":816,"width":745,"height":12}},{"id":"841d9d0c-3431-4571-8948-3196d91c1ecd","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are","page_number":253,"box":{"x":116,"y":831,"width":729,"height":12}},{"id":"3a3e3116-b8c0-4b93-9a81-07d86cc8933f","block_type":"box","text":"discussed; or (f) provides research tools such as market data, financial analysis, and other third-party","page_number":253,"box":{"x":116,"y":847,"width":757,"height":12}},{"id":"9c196fea-3db9-4fba-b7b0-ad794f05d610","block_type":"box","text":"related research and brokerage tools that aid in the investment process.","page_number":253,"box":{"x":117,"y":862,"width":539,"height":12}},{"id":"2a9afb78-9dda-49df-b01d-e1f2cd7cfdc3","block_type":"box","text":"II-159","page_number":253,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"93bd6e1a-e8cc-40f9-826b-ee1a226f86fc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":253,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f46bd83b-e5ad-419f-9d8d-aa3c1708c982","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with","page_number":254,"box":{"x":117,"y":87,"width":751,"height":12}},{"id":"ac66de57-4992-4c2b-97da-918e03ba2ded","block_type":"box","text":"Fund commissions may be in written form or through direct contact with individuals and may include","page_number":254,"box":{"x":117,"y":102,"width":745,"height":13}},{"id":"462f3fcc-0787-4002-8753-bfd3cfaa7cc5","block_type":"box","text":"information as to particular companies or industries and securities or groups of securities, as well as","page_number":254,"box":{"x":117,"y":118,"width":746,"height":12}},{"id":"57dae9e7-7fb6-4cb3-b9a3-23011b30fae4","block_type":"box","text":"market, economic, or institutional advice and statistical information, political developments and","page_number":254,"box":{"x":117,"y":134,"width":705,"height":11}},{"id":"f288bde1-edea-41b6-a549-8cc912edae71","block_type":"box","text":"technical market information that assists in the valuation of investments. Except as noted immediately","page_number":254,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"72426107-a840-4731-9567-84ac06444b1f","block_type":"box","text":"below, research services furnished by brokers may be used in servicing some or all client accounts","page_number":254,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"f5979d65-f419-4fe8-96a8-a366b22cce31","block_type":"box","text":"and not all services may be used in connection with the Fund or account that paid commissions to the","page_number":254,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"f5846382-2028-4db5-9172-b651e23b1be2","block_type":"box","text":"broker providing such services. In some cases, research information received from brokers by mutual","page_number":254,"box":{"x":117,"y":196,"width":757,"height":12}},{"id":"588ee528-726e-443d-b735-4f2819867191","block_type":"box","text":"fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":254,"box":{"x":116,"y":211,"width":699,"height":12}},{"id":"c32dc433-6f08-4564-95c6-d30ade3ea470","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment","page_number":254,"box":{"x":117,"y":227,"width":708,"height":12}},{"id":"f3153a2d-9b92-4c8d-8479-c0e1c9384a00","block_type":"box","text":"advisory or other fees paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt","page_number":254,"box":{"x":116,"y":242,"width":760,"height":12}},{"id":"608e411e-c59c-451c-8b6e-0279e9a58003","block_type":"box","text":"of research services. In some cases, BlackRock may receive a service from a broker that has both a","page_number":254,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"fa1fbff5-71f8-4e15-a712-43ddeb668f7c","block_type":"box","text":"“research” and a “non-research” use. When this occurs BlackRock makes a good faith allocation,","page_number":254,"box":{"x":116,"y":273,"width":725,"height":12}},{"id":"f3bc2562-8821-4105-a1de-9c47bdf2ed8f","block_type":"box","text":"under all the circumstances, between the research and non-research uses of the service. The","page_number":254,"box":{"x":117,"y":289,"width":700,"height":11}},{"id":"93105e85-f906-483f-a180-fa1b68e41a84","block_type":"box","text":"percentage of the service that is used for research purposes may be paid for with client commissions,","page_number":254,"box":{"x":117,"y":304,"width":758,"height":12}},{"id":"c59bf12f-8447-42f6-8673-ab5e82fbc24d","block_type":"box","text":"while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":254,"box":{"x":116,"y":320,"width":701,"height":12}},{"id":"b0506adb-f173-4f2b-9d90-d9bfc5b8fdcd","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of","page_number":254,"box":{"x":117,"y":335,"width":736,"height":12}},{"id":"e4122b4a-4afd-4926-ae19-ccf0e271a56d","block_type":"box","text":"interest, but BlackRock believes that its allocation procedures are reasonably designed to ensure that it","page_number":254,"box":{"x":117,"y":351,"width":771,"height":12}},{"id":"cdccbd3e-8b68-4c67-8402-d82994987b4b","block_type":"box","text":"appropriately allocates the anticipated use of such services to their research and non-research uses.","page_number":254,"box":{"x":116,"y":366,"width":752,"height":12}},{"id":"fc018866-455d-42f3-9d54-0cf5a68059a4","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay","page_number":254,"box":{"x":117,"y":397,"width":748,"height":12}},{"id":"c79b73c2-1d3f-4a84-850b-741218252952","block_type":"box","text":"for research from brokers. Investment managers in the EU are required to either pay for research out","page_number":254,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"6b2975d8-1c87-4556-938a-1e17c97eab06","block_type":"box","text":"of their own profit and loss or agree with clients to have research costs paid by clients through","page_number":254,"box":{"x":116,"y":428,"width":702,"height":12}},{"id":"25a71ec6-981d-49a5-9c1e-a01d63a6e9b7","block_type":"box","text":"research payment accounts that are directly funded or funded by a specific client research charge","page_number":254,"box":{"x":117,"y":444,"width":730,"height":12}},{"id":"92e3cd71-a958-4997-aa82-bbb7f9c3d56d","block_type":"box","text":"collected alongside execution commissions, provided that the payments for research are unbundled","page_number":254,"box":{"x":116,"y":459,"width":745,"height":12}},{"id":"6c116a66-e03e-443b-b29e-d474a70bd36f","block_type":"box","text":"from the payments for execution. BIL will pay for any research out of its own resources and not through","page_number":254,"box":{"x":116,"y":475,"width":771,"height":12}},{"id":"34ebd1c5-4017-414c-9586-278f3cc4ed10","block_type":"box","text":"soft dollars or commission sharing arrangements.","page_number":254,"box":{"x":116,"y":490,"width":372,"height":12}},{"id":"3ecab2d8-05a7-4199-b033-033ec2b38a63","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio","page_number":254,"box":{"x":117,"y":521,"width":740,"height":12}},{"id":"bc6e644b-0e0d-432d-9a3f-992d73a47aa1","block_type":"box","text":"with respect to the Feeder Fund (or affiliated persons of such persons), will be made in accordance","page_number":254,"box":{"x":116,"y":537,"width":741,"height":12}},{"id":"7f39218a-6c8b-481e-9694-00fc0d39ba5c","block_type":"box","text":"with Rule 17e-1 under the Investment Company Act. Subject to policies established by the Board of","page_number":254,"box":{"x":116,"y":552,"width":743,"height":12}},{"id":"c3cd1b18-a2d0-4e3c-bedc-2964aabf398c","block_type":"box","text":"Directors of the Master Portfolio, BlackRock is primarily responsible for the execution of the Master","page_number":254,"box":{"x":117,"y":568,"width":737,"height":12}},{"id":"837f51fb-8461-4abc-bd92-3f29e432f579","block_type":"box","text":"Portfolio’s portfolio transactions and the allocation of brokerage.","page_number":254,"box":{"x":117,"y":583,"width":478,"height":12}},{"id":"2a6446f9-8822-4fac-9a42-d73ed64db009","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these","page_number":254,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"387b50ed-e64c-4268-9868-131568f69490","block_type":"box","text":"situations, the broker may be a member of the selling group that will, in addition to selling securities,","page_number":254,"box":{"x":116,"y":630,"width":746,"height":12}},{"id":"0e676d37-6a2f-4f90-be55-321bffdd242a","block_type":"box","text":"provide BlackRock with research services. FINRA has adopted rules expressly permitting these types","page_number":254,"box":{"x":117,"y":645,"width":757,"height":12}},{"id":"577aaaed-a175-4cf9-9eb5-d533c67792cc","block_type":"box","text":"of arrangements under certain circumstances. Generally, the broker will provide research “credits” in","page_number":254,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"0d32fa07-a66b-4f67-9fc8-fec38c27a83b","block_type":"box","text":"these situations at a rate that is higher than that available for typical secondary market transactions.","page_number":254,"box":{"x":116,"y":676,"width":739,"height":12}},{"id":"014e1c44-1b95-4690-89a5-06275ec4dd37","block_type":"box","text":"These arrangements may not fall within the safe harbor of Section 28(e).","page_number":254,"box":{"x":116,"y":692,"width":538,"height":12}},{"id":"dc5b2e8b-e9e8-4784-bcc8-19cc7e334567","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection","page_number":254,"box":{"x":117,"y":723,"width":756,"height":9}},{"id":"ad4705a6-bee8-431c-a235-a9f9ff610acd","block_type":"box","text":"of brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular","page_number":254,"box":{"x":116,"y":738,"width":756,"height":12}},{"id":"cb364ba6-98a6-4d0d-9135-75aaa6e3ebd9","block_type":"box","text":"broker or dealer sells shares of the mutual funds advised by BlackRock neither qualifies nor","page_number":254,"box":{"x":117,"y":754,"width":680,"height":12}},{"id":"c5c17419-3811-41c1-ab89-89850a92afc6","block_type":"box","text":"disqualifies such broker or dealer to execute transactions for those mutual funds.","page_number":254,"box":{"x":116,"y":769,"width":599,"height":12}},{"id":"2937d727-a4c0-4f45-8898-0682f99047dd","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be","page_number":254,"box":{"x":117,"y":800,"width":721,"height":12}},{"id":"8323a241-9507-4ab1-9a71-323859bce1aa","block_type":"box","text":"conducted primarily on the principal stock exchanges of the applicable country. Foreign equity","page_number":254,"box":{"x":116,"y":816,"width":697,"height":12}},{"id":"d815acd2-145e-4ff9-9d08-280a3750a0c5","block_type":"box","text":"securities may be held by a Fund in the form of depositary receipts, or other securities convertible into","page_number":254,"box":{"x":116,"y":831,"width":762,"height":12}},{"id":"6bb82bf5-d0f8-4630-8115-db275ef9cdc3","block_type":"box","text":"foreign equity securities. Depositary receipts may be listed on stock exchanges, or traded in OTC","page_number":254,"box":{"x":116,"y":847,"width":727,"height":12}},{"id":"77840895-e98f-47d2-922e-fbc2aadb2417","block_type":"box","text":"markets in the United States or Europe, as the case may be. American Depositary Receipts, like other","page_number":254,"box":{"x":117,"y":862,"width":762,"height":12}},{"id":"f20b62b0-495c-49a3-a71b-4b0bad60947e","block_type":"box","text":"securities traded in the United States, will be subject to negotiated commission rates. Because the","page_number":254,"box":{"x":116,"y":878,"width":734,"height":12}},{"id":"70e8c147-5371-4881-9ff3-e8472cc30986","block_type":"box","text":"II-160","page_number":254,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"2aa300dd-d4a4-4014-9db3-5bd97d8671a4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":254,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"190539c9-8d9d-4d22-a985-23e2b5e39138","block_type":"box","text":"shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund intends to manage its","page_number":255,"box":{"x":116,"y":87,"width":764,"height":12}},{"id":"fb2997d9-4374-49bd-81da-a9e43f890743","block_type":"box","text":"portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the extent","page_number":255,"box":{"x":117,"y":102,"width":725,"height":13}},{"id":"0cec7850-dec5-45d3-b095-d9f4b69c7dd6","block_type":"box","text":"necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":255,"box":{"x":117,"y":118,"width":730,"height":12}},{"id":"f7e7b577-74f5-4a63-829c-53ea5e9b374f","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":255,"box":{"x":116,"y":134,"width":561,"height":12}},{"id":"937252ee-7181-4bda-89f6-e90e2d32e2e4","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the","page_number":255,"box":{"x":116,"y":165,"width":366,"height":12}},{"id":"79e4a210-19c4-445e-99cc-2d81263cf8d5","block_type":"box","text":"SAI for information about the brokerage commissions","page_number":255,"box":{"x":482,"y":165,"width":392,"height":12}},{"id":"fe605b21-6af4-4024-bc6f-01eff76ac140","block_type":"box","text":"paid by your Fund, including commissions paid to a","page_number":255,"box":{"x":117,"y":180,"width":371,"height":12}},{"id":"0ba831e0-2da7-4432-8eb8-b024b66c23fc","block_type":"box","text":"ffiliates, if any, for the periods indicated.","page_number":255,"box":{"x":489,"y":180,"width":293,"height":12}},{"id":"55559788-27e0-4aa4-9a68-84e5353b6157","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with","page_number":255,"box":{"x":117,"y":211,"width":753,"height":12}},{"id":"393b26f4-17fc-46dc-8e14-659e7cdee526","block_type":"box","text":"the dealers who make a market in the particular securities, except in those circumstances in which","page_number":255,"box":{"x":116,"y":227,"width":735,"height":11}},{"id":"eb0c2a58-44cd-43d1-a76a-699af28b4562","block_type":"box","text":"better prices and execution are available elsewhere. Under the Investment Company Act, persons","page_number":255,"box":{"x":117,"y":242,"width":732,"height":12}},{"id":"7d9d87d6-ad54-4c86-8b2d-132cae94a2b4","block_type":"box","text":"affiliated with a Fund and persons who are affiliated with such affiliated persons are prohibited from","page_number":255,"box":{"x":116,"y":258,"width":741,"height":11}},{"id":"1236cf24-110a-4f43-b05d-b463b3505fdc","block_type":"box","text":"dealing with the Fund as principal in the purchase and sale of securities unless a permissive order","page_number":255,"box":{"x":116,"y":273,"width":733,"height":12}},{"id":"44b23c53-dae7-491a-9404-55679d959a6b","block_type":"box","text":"allowing such transactions is obtained from the Commission. Since transactions in the OTC market","page_number":255,"box":{"x":116,"y":289,"width":740,"height":12}},{"id":"7d24fc8c-0dec-405b-9b07-9c14bb8caeb6","block_type":"box","text":"usually involve transactions with the dealers acting as principal for their own accounts, the Funds will","page_number":255,"box":{"x":117,"y":304,"width":752,"height":12}},{"id":"b3cbe411-ce22-47dd-a1a8-c4ff5d1a57ee","block_type":"box","text":"not deal with affiliated persons in connection with such transactions. However, an affiliated person of a","page_number":255,"box":{"x":117,"y":320,"width":764,"height":12}},{"id":"c2df8a70-6a96-4b02-9b9f-8fb9d3359725","block_type":"box","text":"Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":255,"box":{"x":117,"y":335,"width":769,"height":12}},{"id":"7f63ab19-27b3-4ce9-9ca8-62d5ff40afef","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared","page_number":255,"box":{"x":116,"y":351,"width":762,"height":12}},{"id":"b9f5878b-33a3-4fb6-b91c-f7a2bf5d69ac","block_type":"box","text":"to the fee or commission received by non-affiliated brokers in connection with comparable transactions.","page_number":255,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"7b0a8594-75ee-47be-8753-89010f918dad","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government","page_number":255,"box":{"x":116,"y":397,"width":729,"height":12}},{"id":"72e1aa25-fdcd-4e02-9784-9785b890ca5f","block_type":"box","text":"Securities, are normally traded on a “net” basis without a stated commission, through dealers acting for","page_number":255,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"a33ec8f9-82a5-45ce-b3e5-a89669200ef6","block_type":"box","text":"their own account and not as brokers. The Funds will primarily engage in transactions with these","page_number":255,"box":{"x":116,"y":428,"width":721,"height":12}},{"id":"aca1ec66-073c-4559-b2f4-339c4689e769","block_type":"box","text":"dealers or deal directly with the issuer unless a better price or execution could be obtained by using a","page_number":255,"box":{"x":116,"y":444,"width":757,"height":12}},{"id":"c3a11a4a-d04b-44b9-b360-e6a5b64f1b91","block_type":"box","text":"broker. Prices paid to a dealer with respect to both foreign and domestic securities will generally","page_number":255,"box":{"x":117,"y":459,"width":716,"height":12}},{"id":"7b10869b-ec25-4b51-b230-2584eb1513b8","block_type":"box","text":"include a “spread,” which is the difference between the prices at which the dealer is willing to purchase","page_number":255,"box":{"x":117,"y":475,"width":766,"height":12}},{"id":"e1bb6fdf-edb8-445e-8175-c3d5809e6305","block_type":"box","text":"and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":255,"box":{"x":116,"y":490,"width":596,"height":12}},{"id":"9d13a002-e21d-471c-9e82-5c420e3f4b25","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers.","page_number":255,"box":{"x":117,"y":521,"width":756,"height":12}},{"id":"13c1c352-69b4-422c-b3e3-210e73c069bc","block_type":"box","text":"The Funds do not currently expect to incur any brokerage commission expense on such transactions","page_number":255,"box":{"x":116,"y":537,"width":753,"height":12}},{"id":"ced1ee66-16d9-4f99-8280-b5895ccabdac","block_type":"box","text":"because money market instruments are generally traded on a “net” basis with dealers acting as","page_number":255,"box":{"x":117,"y":552,"width":712,"height":12}},{"id":"776d8e49-3d07-414e-a8da-c08139edb2ae","block_type":"box","text":"principal for their own accounts without a stated commission. The price of the security, however,","page_number":255,"box":{"x":117,"y":568,"width":718,"height":12}},{"id":"f58de319-f9a0-48e6-ba7a-c8ec8465d8c0","block_type":"box","text":"usually includes a profit to the dealer. Each money market fund intends to purchase only securities with","page_number":255,"box":{"x":117,"y":583,"width":771,"height":12}},{"id":"e00363b5-37c9-45f0-9e6b-9f7c0701e0de","block_type":"box","text":"remaining maturities of 397 days or less as determined in accordance with the rules of the","page_number":255,"box":{"x":117,"y":599,"width":672,"height":12}},{"id":"018ecece-d625-4d5b-916d-543314f9a536","block_type":"box","text":"Commission. As a result, the portfolio turnover rates of a money market fund will be relatively high.","page_number":255,"box":{"x":117,"y":614,"width":736,"height":12}},{"id":"197e2a3d-2e10-4121-993b-271886f0e86b","block_type":"box","text":"However, because brokerage commissions will not normally be paid with respect to investments made","page_number":255,"box":{"x":117,"y":630,"width":764,"height":12}},{"id":"97fb9b2a-6144-4dfd-882a-2df32b84691c","block_type":"box","text":"by a money market fund, the turnover rates should","page_number":255,"box":{"x":117,"y":645,"width":380,"height":12}},{"id":"8e115f8c-2601-4eca-8c89-7924154ba307","block_type":"box","text":"not adversely affect the Fund’s NAVs or net","page_number":255,"box":{"x":498,"y":645,"width":328,"height":12}},{"id":"700ccbfa-5662-4c80-bd1c-84d5c7b5e71b","block_type":"box","text":"income.","page_number":255,"box":{"x":117,"y":661,"width":56,"height":9}},{"id":"583de139-559d-42b3-86ec-46a01093834f","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the","page_number":255,"box":{"x":116,"y":692,"width":689,"height":12}},{"id":"12668038-de37-475f-ad94-b1d98bc2ef3e","block_type":"box","text":"underwriter, generally referred to as the underwriter’s concession or discount. When offered securities","page_number":255,"box":{"x":117,"y":707,"width":756,"height":12}},{"id":"0e37e750-e806-4875-884a-8dc35dae8d44","block_type":"box","text":"are purchased or sold directly from or to an issuer, no commissions or discounts are paid except where","page_number":255,"box":{"x":116,"y":723,"width":766,"height":12}},{"id":"98baa8b2-1c68-42e1-8519-a5876b9f3824","block_type":"box","text":"required by local markets.","page_number":255,"box":{"x":117,"y":738,"width":190,"height":12}},{"id":"a34cc051-9b65-4d52-a9e2-ecee87aa88bf","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or","page_number":255,"box":{"x":116,"y":769,"width":755,"height":12}},{"id":"84e6890a-cfed-4c2c-bc15-d77c4b29fb00","block_type":"box","text":"dealers selling commercial paper to consider the repurchase of such securities from a Fund prior to","page_number":255,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"9441062f-fd34-4b94-9c42-75c6200d61cc","block_type":"box","text":"maturity at their original cost plus interest (sometimes adjusted to reflect the actual maturity of the","page_number":255,"box":{"x":117,"y":800,"width":723,"height":12}},{"id":"3c7cd00c-a0a7-4e35-a362-d22de10e5268","block_type":"box","text":"securities), if it believes that a Fund’s anticipated need for liquidity makes such action desirable. Any","page_number":255,"box":{"x":116,"y":816,"width":744,"height":12}},{"id":"f5509d6f-2ca2-4496-b904-7e92cbe3d211","block_type":"box","text":"such repurchase prior to maturity reduces the possibility that a Fund would incur a capital loss in","page_number":255,"box":{"x":116,"y":831,"width":720,"height":12}},{"id":"da53aaf5-c909-427b-9ad9-731be9874b58","block_type":"box","text":"liquidating commercial paper, especially if interest rates have risen since acquisition of such","page_number":255,"box":{"x":117,"y":847,"width":685,"height":12}},{"id":"e5b77470-fdf7-46d6-9422-44d1012b745f","block_type":"box","text":"commercial paper.","page_number":255,"box":{"x":116,"y":862,"width":143,"height":12}},{"id":"ec8b028c-7349-42e7-87c3-03eacd4277c8","block_type":"box","text":"II-161","page_number":255,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"5a71e04c-a021-44fe-b908-165fdba221ad","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":255,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d2276a34-374c-4179-ae2f-36f7193dc3fe","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or","page_number":256,"box":{"x":117,"y":87,"width":744,"height":12}},{"id":"a748cd5b-84de-4373-be9f-6c60f8d5bb01","block_type":"box","text":"sub-advisers are made independently of each other in light of differing conditions. BlackRock allocates","page_number":256,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"01c8dcc1-59f2-4e95-a930-fc94ccd4aab9","block_type":"box","text":"investments among client accounts in a fair and equitable manner over time. A variety of factors will be","page_number":256,"box":{"x":117,"y":118,"width":767,"height":12}},{"id":"1bce0721-8a80-4727-8e73-6b424001bf73","block_type":"box","text":"considered in making such allocations. These factors include: (i) investment objectives or strategies for","page_number":256,"box":{"x":116,"y":134,"width":769,"height":12}},{"id":"8432cc56-26cd-4176-b6b6-ea9bd94e479e","block_type":"box","text":"particular accounts, including sector, industry, country or region and capitalization weightings, (ii) tax","page_number":256,"box":{"x":117,"y":149,"width":749,"height":12}},{"id":"6285a1bc-b20e-4716-b829-411825ad3012","block_type":"box","text":"considerations of an account, (iii) risk or investment concentration parameters for an account,","page_number":256,"box":{"x":116,"y":165,"width":699,"height":12}},{"id":"6e01f9f3-a51c-4819-934c-c40dca74b8a7","block_type":"box","text":"(iv) supply or demand for a security at a given price level, (v) size of available investment, (vi) cash","page_number":256,"box":{"x":117,"y":180,"width":737,"height":12}},{"id":"86bf983f-0c5c-4764-a502-c322acfbb7e3","block_type":"box","text":"availability and liquidity requirements for accounts, (vii) regulatory restrictions, (viii) minimum","page_number":256,"box":{"x":116,"y":196,"width":690,"height":12}},{"id":"4e665af4-d56b-4005-a3da-c2ddfcd25db0","block_type":"box","text":"investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":256,"box":{"x":117,"y":211,"width":717,"height":12}},{"id":"7407eb7c-9952-4c07-8f8f-87a5f3938874","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client","page_number":256,"box":{"x":116,"y":227,"width":752,"height":12}},{"id":"9de091b0-f78c-4575-adda-9c1f3f18a4a9","block_type":"box","text":"account over another based on any of the following considerations: (i) to favor one client account at the","page_number":256,"box":{"x":116,"y":242,"width":771,"height":12}},{"id":"3338c63a-07ae-4003-bd0f-10fa0b0f9d2a","block_type":"box","text":"expense of another, (ii) to generate higher fees paid by one client account over another or to produce","page_number":256,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"913578fb-04d2-42a1-add8-ad4940a8f438","block_type":"box","text":"greater performance compensation to BlackRock, (iii) to develop or enhance a relationship with a client","page_number":256,"box":{"x":116,"y":273,"width":770,"height":12}},{"id":"e08a8362-1a56-4524-86d6-18b0e6c4c6d1","block_type":"box","text":"or prospective client, (iv) to compensate a client for past services or benefits rendered to BlackRock or","page_number":256,"box":{"x":116,"y":289,"width":765,"height":12}},{"id":"01029203-1a5f-452f-b595-5c569d535ae1","block_type":"box","text":"to induce future services or benefits to be rendered to BlackRock, or (v) to manage or equalize","page_number":256,"box":{"x":116,"y":304,"width":707,"height":12}},{"id":"176bd5f5-f2aa-43f6-a672-7665440361ad","block_type":"box","text":"investment performance among different client accounts.","page_number":256,"box":{"x":117,"y":320,"width":426,"height":12}},{"id":"28ceedab-5407-44b9-adeb-47ec3d352520","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment","page_number":256,"box":{"x":117,"y":351,"width":702,"height":12}},{"id":"7488c7fb-68ef-416c-a3cd-27ba294c19a1","block_type":"box","text":"mandate on a pro rata basis. All allocations of equity securities will be subject, where relevant, to share","page_number":256,"box":{"x":117,"y":366,"width":769,"height":12}},{"id":"5bc50a8f-4567-4954-9a50-bb1aa31d881e","block_type":"box","text":"minimums established for accounts and compliance constraints.","page_number":256,"box":{"x":117,"y":382,"width":479,"height":12}},{"id":"284d7317-75b4-44c6-8156-0af590a5fd7e","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":256,"box":{"x":117,"y":413,"width":768,"height":12}},{"id":"8d3b2acf-e09a-4d7c-9bd6-76dfe7a39f35","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less","page_number":256,"box":{"x":116,"y":428,"width":769,"height":12}},{"id":"97a7961a-eacd-43be-aaef-dbc0c4e695cb","block_type":"box","text":"than the amount of securities the accounts would otherwise take. In order to allocate these investments","page_number":256,"box":{"x":116,"y":444,"width":772,"height":9}},{"id":"2c4ba0bc-db27-482b-b15e-ab17185c7812","block_type":"box","text":"fairly and equitably among client accounts over time, each portfolio manager or a member of his or her","page_number":256,"box":{"x":116,"y":459,"width":766,"height":12}},{"id":"09ba306a-88dd-434c-9018-9e2b0b635901","block_type":"box","text":"respective investment team will indicate to BlackRock’s trading desk their level of interest in a","page_number":256,"box":{"x":117,"y":475,"width":697,"height":12}},{"id":"9f35aab1-d7c4-4f06-9693-ab296487c196","block_type":"box","text":"particular offering with respect to eligible client accounts for which that team is responsible. Initial","page_number":256,"box":{"x":117,"y":490,"width":723,"height":12}},{"id":"0895f38d-dc58-4751-92cc-31401bbf0325","block_type":"box","text":"public offerings of U.S. equity securities will be identified as eligible for particular client accounts that","page_number":256,"box":{"x":117,"y":506,"width":748,"height":12}},{"id":"131fc354-41bf-4910-a4a0-1c3e999f24c3","block_type":"box","text":"are managed by portfolio teams who have indicated interest in the offering based on market","page_number":256,"box":{"x":116,"y":521,"width":687,"height":12}},{"id":"e01f488a-f2c8-41ff-8b58-f2968df6afb4","block_type":"box","text":"capitalization of the issuer of the security and the investment mandate of the client account and in the","page_number":256,"box":{"x":116,"y":537,"width":758,"height":12}},{"id":"f6fe8dfb-a489-43aa-a764-5fdc28f69247","block_type":"box","text":"case of international equity securities, the country where the offering is taking place and the investment","page_number":256,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"733a7efa-f6ce-4da1-a111-bd594c09a7fd","block_type":"box","text":"mandate of the client account. Generally, shares received during the initial public offering will be","page_number":256,"box":{"x":117,"y":568,"width":716,"height":12}},{"id":"09a9973b-8353-4950-99d8-c50ed630f986","block_type":"box","text":"allocated among participating client accounts within each investment mandate on a pro rata basis. In","page_number":256,"box":{"x":116,"y":583,"width":752,"height":12}},{"id":"d7730480-1674-4230-b051-13946c1bb4d1","block_type":"box","text":"situations where supply is too limited to be allocated among all accounts for which the investment is","page_number":256,"box":{"x":116,"y":599,"width":744,"height":12}},{"id":"a2bd224e-c59f-4ae8-9fcc-9aa67e53decb","block_type":"box","text":"eligible, portfolio managers may rotate such investment opportunities among one or more accounts so","page_number":256,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"6838245c-0078-4301-a6d5-8265d01e3166","block_type":"box","text":"long as the rotation system provides for fair access for all client accounts over time. Other allocation","page_number":256,"box":{"x":117,"y":630,"width":746,"height":12}},{"id":"4e4c3358-0420-43b0-b3df-78219f2ca0d1","block_type":"box","text":"methodologies that are considered by BlackRock to be fair and equitable to clients may be used as","page_number":256,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"1718e132-47b8-4d11-92b8-d289ff417b05","block_type":"box","text":"well.","page_number":256,"box":{"x":116,"y":661,"width":32,"height":9}},{"id":"add1e30b-73d9-4235-8d7f-0265b66c8e8c","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy","page_number":256,"box":{"x":117,"y":692,"width":760,"height":12}},{"id":"98399ee7-0142-41c4-be07-04739e766ec1","block_type":"box","text":"and sell the same securities at the same time for different clients based on the particular investment","page_number":256,"box":{"x":116,"y":707,"width":741,"height":12}},{"id":"7f47502c-62c9-407b-ba1f-2724b328662d","block_type":"box","text":"objective, guidelines and strategies of those accounts. For example, BlackRock may decide that it may","page_number":256,"box":{"x":116,"y":723,"width":763,"height":12}},{"id":"1ec12a5e-590f-4f5e-8609-7c7156507bac","block_type":"box","text":"be entirely appropriate for a growth fund to sell a security at the same time a value fund is buying that","page_number":256,"box":{"x":117,"y":738,"width":752,"height":12}},{"id":"b008b70e-1c58-4842-9f5b-f257f733faaf","block_type":"box","text":"security. To the extent that transactions on behalf of more than one client of BlackRock or its affiliates","page_number":256,"box":{"x":116,"y":754,"width":754,"height":12}},{"id":"b4d63dae-4560-4467-bde1-e22323a88ab7","block_type":"box","text":"during the same period may increase the demand for securities being purchased or the supply of","page_number":256,"box":{"x":116,"y":769,"width":720,"height":12}},{"id":"dd6d3620-5484-416d-8a34-c79405e1c255","block_type":"box","text":"securities being sold, there may be an adverse effect on price. For example, sales of a security by","page_number":256,"box":{"x":116,"y":785,"width":728,"height":12}},{"id":"d3d85a7c-ec4f-44c0-903c-41afbc395095","block_type":"box","text":"BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":256,"box":{"x":117,"y":800,"width":720,"height":12}},{"id":"2fa91caa-0bbc-4f77-abd7-4eda965a574a","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of","page_number":256,"box":{"x":116,"y":816,"width":701,"height":12}},{"id":"9f346ab4-90c9-4c37-b286-586ad2e37d4a","block_type":"box","text":"securities arise for consideration at or about the same time that would involve a Fund or other clients or","page_number":256,"box":{"x":116,"y":831,"width":772,"height":10}},{"id":"53e04432-7533-454a-8efd-d478586015a3","block_type":"box","text":"funds for which BlackRock or an affiliate act as investment manager, transactions in such securities will","page_number":256,"box":{"x":116,"y":847,"width":772,"height":12}},{"id":"81d169fa-1ee8-4529-b6dd-44c8aa39db7e","block_type":"box","text":"be made, insofar as feasible, for the respective funds and clients in a manner deemed equitable to all.","page_number":256,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"578cf817-ecb3-44c1-af54-2e6f5f63bb43","block_type":"box","text":"II-162","page_number":256,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"1d61bea5-8a65-48b1-b52f-5f84a093242f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":256,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"49abf2a3-439a-4926-a892-64179461209e","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":257,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"5fffcc8f-10d1-4292-821b-3651f2b44de8","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":257,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"6de1a97a-206c-4a2a-8d61-5c4056512721","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or","page_number":257,"box":{"x":116,"y":118,"width":733,"height":12}},{"id":"0aa7c7da-2af8-4afb-ba94-4ce5f2a639e2","block_type":"box","text":"investment team will be aggregated in a single order if the trader believes the aggregated trade would","page_number":257,"box":{"x":117,"y":134,"width":758,"height":12}},{"id":"1c141cb3-b288-4338-807d-9cddeb713b25","block_type":"box","text":"provide each client with an opportunity to achieve a more favorable execution at a potentially lower","page_number":257,"box":{"x":117,"y":149,"width":737,"height":12}},{"id":"c464400d-3402-42e4-8049-8e2e01529008","block_type":"box","text":"execution cost. The costs associated with an aggregated order will be shared pro rata among the","page_number":257,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"cec0f145-9e2d-4a1b-95da-af7585bbe574","block_type":"box","text":"clients in the aggregated order. Generally, if an order for a particular portfolio manager or management","page_number":257,"box":{"x":116,"y":180,"width":769,"height":12}},{"id":"310f67d2-433f-4e08-8581-538615c5e33d","block_type":"box","text":"team is filled at several different prices through multiple trades, all accounts participating in the order","page_number":257,"box":{"x":116,"y":196,"width":750,"height":12}},{"id":"44e7e24a-430d-4c64-91fe-1a0acc301556","block_type":"box","text":"will receive the average price except in the case of certain international markets where average pricing","page_number":257,"box":{"x":116,"y":211,"width":767,"height":12}},{"id":"2df19552-c0dc-46d0-a436-f0697631d783","block_type":"box","text":"is not permitted. While in some cases this practice could have a detrimental effect upon the price or","page_number":257,"box":{"x":117,"y":227,"width":742,"height":11}},{"id":"c0fb869d-7dcf-469e-97a8-cfe7baee1e07","block_type":"box","text":"value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":257,"box":{"x":116,"y":242,"width":747,"height":12}},{"id":"bffa71df-5616-4f8e-9cf5-9349bcbedc1a","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period","page_number":257,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"8f499736-1793-462d-a886-256fa1aa042d","block_type":"box","text":"may increase the demand for securities being purchased or the supply of securities being sold, causing","page_number":257,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"a2a74d6c-4ba9-4f3f-bfe7-c6edbea82af9","block_type":"box","text":"an adverse effect on price. The trader will give the aggregated order to the broker-dealer that the trader","page_number":257,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"3f11ad98-b03c-430e-8f15-8c2403b73e4e","block_type":"box","text":"has identified as being able to provide the best execution of the order. Orders for purchase or sale of","page_number":257,"box":{"x":117,"y":304,"width":751,"height":12}},{"id":"428dce95-f295-4b90-be33-f665a0012d83","block_type":"box","text":"securities will be placed within a reasonable amount of time of the order receipt and aggregated orders","page_number":257,"box":{"x":116,"y":320,"width":768,"height":12}},{"id":"04523c7c-615d-4157-9dbc-5beb285a9107","block_type":"box","text":"will be kept aggregated only long enough to execute the order.","page_number":257,"box":{"x":116,"y":335,"width":469,"height":12}},{"id":"596492c8-a706-4843-94a4-aa1e333218c6","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to","page_number":257,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"0931e297-eda2-4b87-9d7c-e3a01e70d69e","block_type":"box","text":"such securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment","page_number":257,"box":{"x":116,"y":382,"width":709,"height":12}},{"id":"57ef7697-97f2-46f1-9f72-d22d330db09b","block_type":"box","text":"Company Act) thereof is a member except pursuant to procedures adopted by the Board of Directors in","page_number":257,"box":{"x":117,"y":397,"width":771,"height":12}},{"id":"004fa42f-85c9-4e3a-af72-1c86899bcb7d","block_type":"box","text":"accordance with Rule 10f-3 under the Investment Company Act. In no instance will portfolio securities","page_number":257,"box":{"x":116,"y":413,"width":759,"height":12}},{"id":"2be2aa93-c127-458b-893b-1bcf8a3354cd","block_type":"box","text":"be purchased from or sold to BlackRock, BRIL or any affiliated person of the foregoing entities except","page_number":257,"box":{"x":117,"y":428,"width":758,"height":12}},{"id":"a0c9d38b-dbb4-4131-927d-7646f5d65aa9","block_type":"box","text":"as permitted by Commission exemptive order or by applicable law.","page_number":257,"box":{"x":116,"y":444,"width":499,"height":12}},{"id":"1de99f13-5929-4fec-9be0-5d4c2c5a6f3f","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment","page_number":257,"box":{"x":116,"y":475,"width":731,"height":12}},{"id":"e84bfa47-d5b2-4d35-b681-f206b35d39f0","block_type":"box","text":"companies, clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio","page_number":257,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"9a3c665e-7293-4ed5-9e7a-ac00e0d8232c","block_type":"box","text":"securities of a Fund and one or more other accounts managed or advised by BlackRock are","page_number":257,"box":{"x":116,"y":506,"width":687,"height":12}},{"id":"8a1e3b46-836a-4e80-9d61-18783db0bcd5","block_type":"box","text":"considered at or about the same time, transactions in such securities are allocated among the Fund","page_number":257,"box":{"x":116,"y":521,"width":745,"height":12}},{"id":"35b7c18b-7447-48ed-9edd-ac6ff37dd96e","block_type":"box","text":"and the other accounts in a manner deemed equitable to all by BlackRock. In some cases, this","page_number":257,"box":{"x":116,"y":537,"width":708,"height":12}},{"id":"49c53273-1c93-4a87-b82a-293c3110a5cc","block_type":"box","text":"procedure could have a detrimental effect on the price or volume of the security as far as a Fund is","page_number":257,"box":{"x":117,"y":552,"width":737,"height":12}},{"id":"c8eaceeb-f92c-4819-8d1b-5eb6e8cacd94","block_type":"box","text":"concerned. However, in other cases, it is possible that the ability to participate in volume transactions","page_number":257,"box":{"x":116,"y":568,"width":756,"height":12}},{"id":"2ea15edf-4789-43ef-b5d5-c0b5aac7c6cb","block_type":"box","text":"and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":257,"box":{"x":116,"y":583,"width":760,"height":12}},{"id":"28d9a058-a48a-499b-91d2-6f84cbec576a","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from","page_number":257,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"bb3635b7-85fd-4cc9-a223-e0befb8f4613","block_type":"box","text":"time to time, effect trades on behalf of and for the","page_number":257,"box":{"x":116,"y":614,"width":372,"height":11}},{"id":"49c7e4c8-5041-4496-9752-91ffe8bb6a1f","block_type":"box","text":"account of a Fund with brokers or dealers that are","page_number":257,"box":{"x":488,"y":614,"width":376,"height":10}},{"id":"79b8e079-4eb2-4731-a3ca-b8be002423a1","block_type":"box","text":"affiliated with BFA, in conformity with the Investment Company Act and Commission rules and","page_number":257,"box":{"x":116,"y":630,"width":703,"height":12}},{"id":"7534afe1-cced-4e77-bb10-8da6bb9da034","block_type":"box","text":"regulations. Under these provisions, any commissions paid to affiliated brokers or dealers must be","page_number":257,"box":{"x":117,"y":645,"width":733,"height":12}},{"id":"78f44936-cced-4e5d-91bd-7511c7836c9d","block_type":"box","text":"reasonable and fair compared to the commissions charged by other brokers or dealers in comparable","page_number":257,"box":{"x":117,"y":661,"width":752,"height":12}},{"id":"35aabd07-b56d-41c3-a7a5-6fa203853ac8","block_type":"box","text":"transactions. A Fund will not deal with affiliates in principal transactions unless permitted by applicable","page_number":257,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"8b5f1097-8ebd-4fc0-93dd-a915b7dbbcd7","block_type":"box","text":"Commission rules or regulations, or by Commission exemptive order.","page_number":257,"box":{"x":117,"y":692,"width":512,"height":12}},{"id":"29a1dad1-ccdc-491a-95f5-1483e4331bf7","block_type":"box","text":"Portfolio Turnover","page_number":257,"box":{"x":117,"y":723,"width":146,"height":9}},{"id":"0c31f18d-f2f7-4387-b4a7-78c4755b19b1","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of","page_number":257,"box":{"x":116,"y":746,"width":761,"height":12}},{"id":"42e7b3e5-2588-4e4f-90e4-45db3fc07caf","block_type":"box","text":"portfolio securities (exclusive of purchases or sales of U.S. Government Securities and all other","page_number":257,"box":{"x":117,"y":761,"width":708,"height":13}},{"id":"e39a53c6-7b50-477f-90ae-fb9ca0c75b52","block_type":"box","text":"securities whose maturities at the time of acquisition were one year or less) by the monthly average","page_number":257,"box":{"x":116,"y":777,"width":738,"height":12}},{"id":"595f212b-2365-4cec-b3d6-cb01cff4cdb5","block_type":"box","text":"value of the securities in the portfolio during the year. A high rate of portfolio turnover results in certain","page_number":257,"box":{"x":116,"y":792,"width":757,"height":13}},{"id":"d19fbfb7-f8ac-4921-8bae-04ecd0b22b43","block_type":"box","text":"tax consequences, such as increased capital gain dividends and/or ordinary income dividends, and in","page_number":257,"box":{"x":116,"y":808,"width":752,"height":12}},{"id":"e3870fe5-1f31-40d4-a454-dfc070d8e1b5","block_type":"box","text":"correspondingly greater transaction costs in the form of dealer spreads and brokerage commissions,","page_number":257,"box":{"x":116,"y":823,"width":745,"height":13}},{"id":"46335235-5e47-4b7d-bad7-ea5102c180b6","block_type":"box","text":"which are borne directly by a Fund.","page_number":257,"box":{"x":116,"y":839,"width":266,"height":12}},{"id":"f967e72f-19ee-48c8-a1eb-2bd104b0e094","block_type":"box","text":"II-163","page_number":257,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"8a6053f7-fa8a-40ba-9f33-b2738151088d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":257,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6d59715f-35ac-434e-b789-84d1c81c1ca7","block_type":"box","text":"D","page_number":258,"box":{"x":419,"y":87,"width":10,"height":9}},{"id":"fb0546df-00a7-4c31-acec-28563dad7879","block_type":"box","text":"IVIDENDS","page_number":258,"box":{"x":431,"y":89,"width":63,"height":8}},{"id":"ad69e7e1-f88b-4c98-a335-1ba6b67780ef","block_type":"box","text":"AND","page_number":258,"box":{"x":499,"y":89,"width":29,"height":7}},{"id":"35f351eb-870d-4cf4-8adc-c3f0a0979a8e","block_type":"box","text":"T","page_number":258,"box":{"x":529,"y":87,"width":14,"height":9}},{"id":"2309ca9a-6946-43c0-8401-39616025ec04","block_type":"box","text":"AXES","page_number":258,"box":{"x":544,"y":89,"width":36,"height":8}},{"id":"cbed284d-1b2b-4972-ba02-53dce3daf851","block_type":"box","text":"Dividends","page_number":258,"box":{"x":117,"y":118,"width":84,"height":10}},{"id":"e1144a63-fd0a-43f0-9184-bb46413d428e","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from","page_number":258,"box":{"x":117,"y":141,"width":739,"height":12}},{"id":"752ca575-2737-49b7-9c30-0f57eb384258","block_type":"box","text":"such net investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends","page_number":258,"box":{"x":116,"y":157,"width":755,"height":12}},{"id":"0e7a4fde-2e27-4c44-b4f6-002ebf708563","block_type":"box","text":"to distribute all net realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to","page_number":258,"box":{"x":116,"y":172,"width":751,"height":12}},{"id":"0d114113-0104-418c-955a-4bb5cbeea112","block_type":"box","text":"time, a Fund may declare a special distribution at or about the end of the calendar year in order to","page_number":258,"box":{"x":116,"y":188,"width":732,"height":12}},{"id":"33c2832c-0f3b-4c4d-9ba8-c385f459a9fc","block_type":"box","text":"comply with U.S. federal tax requirements that certain percentages of its ordinary income and capital","page_number":258,"box":{"x":116,"y":203,"width":752,"height":12}},{"id":"73a86695-e800-425e-a78b-7341a0fb83ac","block_type":"box","text":"gains be distributed during the year. If, in any fiscal year, a Fund has net income from certain foreign","page_number":258,"box":{"x":116,"y":219,"width":751,"height":12}},{"id":"b6e8d90a-7067-4633-add4-2a5a8a389855","block_type":"box","text":"currency transactions, such income will be distributed at least annually.","page_number":258,"box":{"x":116,"y":234,"width":533,"height":12}},{"id":"174c1d4c-13c6-4eeb-8c0c-1b34b6bd4a89","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares","page_number":258,"box":{"x":117,"y":265,"width":753,"height":12}},{"id":"4222dcf2-e64c-45ab-bcdb-4643b352429e","block_type":"box","text":"of each Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.”","page_number":258,"box":{"x":116,"y":281,"width":745,"height":12}},{"id":"93cefff5-3d05-4b0e-9c42-eacd1247f952","block_type":"box","text":"Shareholders may also elect in writing to receive any such dividends in cash. Dividends are taxable to","page_number":258,"box":{"x":116,"y":296,"width":761,"height":12}},{"id":"3b3fea2c-d5f8-4b0d-aa3f-c856326b4fff","block_type":"box","text":"shareholders, as discussed below, whether they are reinvested in shares of the Fund or received in","page_number":258,"box":{"x":116,"y":312,"width":743,"height":12}},{"id":"26b6f23a-94cc-401b-b7c2-2a02b0832c51","block_type":"box","text":"cash. The per share dividends on front-end load shares, CDSC shares and Service Shares will be","page_number":258,"box":{"x":116,"y":327,"width":732,"height":12}},{"id":"9a67468a-1c47-4a85-a95f-1bbf162023ef","block_type":"box","text":"lower than the per share dividends on Institutional Shares as a result of the service, distribution and","page_number":258,"box":{"x":117,"y":343,"width":743,"height":12}},{"id":"47d2a8a1-290c-492b-be55-9cc2c92df446","block_type":"box","text":"higher transfer agency fees applicable to CDSC shares, the service fees applicable to front-end load","page_number":258,"box":{"x":117,"y":358,"width":749,"height":12}},{"id":"9b4e2af3-2554-42c6-8324-5604ffd83968","block_type":"box","text":"shares and Service Shares, and the service and distribution fees applicable to Class R Shares.","page_number":258,"box":{"x":116,"y":374,"width":711,"height":12}},{"id":"e2671177-ac86-4e2a-a1b9-b5ad90bc7f3b","block_type":"box","text":"Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per","page_number":258,"box":{"x":116,"y":389,"width":728,"height":12}},{"id":"e8d34d1d-1564-468d-bd8a-744867a1203b","block_type":"box","text":"share dividends on front-end load shares and Service Shares as a result of the distribution fees and","page_number":258,"box":{"x":116,"y":405,"width":745,"height":9}},{"id":"68033ee4-efa4-44ad-bb22-e7f61a692397","block_type":"box","text":"higher transfer agency fees applicable to CDSC shares and the distribution fees applicable to Class R","page_number":258,"box":{"x":117,"y":420,"width":760,"height":12}},{"id":"cfca2a8f-7f16-4f5f-91de-2711a5bd4691","block_type":"box","text":"Shares, and the per share dividends on CDSC shares will be lower than the per share dividends on","page_number":258,"box":{"x":116,"y":436,"width":742,"height":12}},{"id":"8cf42571-fa56-405a-8a62-d3d6ee76e887","block_type":"box","text":"Class R Shares as a result of the higher distribution fees and higher transfer agency fees applicable to","page_number":258,"box":{"x":117,"y":451,"width":764,"height":12}},{"id":"d4d17d50-554a-433c-b8f6-285a3483dd8a","block_type":"box","text":"CDSC shares.","page_number":258,"box":{"x":117,"y":467,"width":111,"height":9}},{"id":"548d40e8-5044-47cd-a653-9aa786baace2","block_type":"box","text":"Taxes","page_number":258,"box":{"x":116,"y":498,"width":52,"height":9}},{"id":"24039400-5496-4060-8b6b-62c7435f8163","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":258,"box":{"x":117,"y":521,"width":761,"height":12}},{"id":"4e23f478-6827-423d-b85b-f737901ae8fa","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not","page_number":258,"box":{"x":116,"y":537,"width":763,"height":12}},{"id":"c4da6ca9-6b46-4722-8d80-13641bd51fa1","block_type":"box","text":"be subject to U.S. federal income tax on the part of its investment company taxable income and net","page_number":258,"box":{"x":117,"y":552,"width":742,"height":12}},{"id":"27fc0c2d-961a-48b9-a175-197c9200bae2","block_type":"box","text":"realized capital gains that it distributes to its shareholders in years in which it distributes at least 90% of","page_number":258,"box":{"x":117,"y":568,"width":770,"height":12}},{"id":"9760106f-845d-49e4-8d84-494aefea0e68","block_type":"box","text":"its investment company taxable income and at least 90% of its net tax-exempt interest income, if any,","page_number":258,"box":{"x":117,"y":583,"width":757,"height":12}},{"id":"0be709aa-e9bc-46ec-a57b-b420ad423a6c","block_type":"box","text":"for the year. To qualify as a regulated investment company, a Fund must meet certain requirements","page_number":258,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"31a51297-475f-4b4e-9294-dd40c09805ca","block_type":"box","text":"regarding the source of its income and the composition and diversification of its assets. See Part II,","page_number":258,"box":{"x":117,"y":614,"width":739,"height":12}},{"id":"a4e9ab40-260c-4760-9722-1e1d49a77200","block_type":"box","text":"“Investment Risks and Considerations — Investment Restrictions (All Funds)” for a discussion of the","page_number":258,"box":{"x":116,"y":630,"width":749,"height":12}},{"id":"b6cb5641-4576-47d3-9ca2-806ae708a53e","block_type":"box","text":"asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the underlying","page_number":258,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"74badef2-c37e-4019-9be8-abb93ea053ad","block_type":"box","text":"assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":258,"box":{"x":116,"y":661,"width":766,"height":12}},{"id":"f9f723bd-cdfb-46d7-a6d2-b302bb45c925","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment","page_number":258,"box":{"x":117,"y":676,"width":678,"height":12}},{"id":"b7d81be9-e7e3-4ca0-97a6-4f9ce4635d44","block_type":"box","text":"companies.","page_number":258,"box":{"x":116,"y":692,"width":84,"height":12}},{"id":"5b5f103c-db35-49f9-ae2d-cf56d7f0899c","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","page_number":258,"box":{"x":116,"y":723,"width":737,"height":12}},{"id":"4001539d-6889-4bdc-a123-6d29fce313df","block_type":"box","text":"above or a failure to diversify its holdings in the manner described above by paying a tax, by disposing","page_number":258,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"8262df69-68ac-4d71-a31f-9cd20f2d9d9c","block_type":"box","text":"of certain assets, or by paying a tax and disposing of","page_number":258,"box":{"x":116,"y":754,"width":392,"height":12}},{"id":"6ceeccc3-d5f3-4b49-b2ae-1822503b029f","block_type":"box","text":"assets. If, in any taxable year, a Fund fails one of","page_number":258,"box":{"x":513,"y":754,"width":366,"height":12}},{"id":"5ad52431-752d-4457-99a7-1fe183e28035","block_type":"box","text":"these tests and does not timely cure the failure, the Fund will be taxed in the same manner as an","page_number":258,"box":{"x":116,"y":769,"width":719,"height":12}},{"id":"798866b7-884f-4716-89b3-213648b7abf2","block_type":"box","text":"ordinary corporation and distributions to its shareholders will not be deductible by the Fund in","page_number":258,"box":{"x":116,"y":785,"width":690,"height":12}},{"id":"5020a10d-93b5-488e-8ab7-1329e2370e03","block_type":"box","text":"computing its taxable income. Although in general the passive loss rules of the Code do not apply to","page_number":258,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"72c8f9d2-7935-4424-acba-3d25b552cf19","block_type":"box","text":"regulated investment companies, such rules do apply to a regulated investment company with respect","page_number":258,"box":{"x":117,"y":816,"width":756,"height":12}},{"id":"646f5f0a-2c79-48f3-b026-8d77a9fb8ca2","block_type":"box","text":"to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s investments in","page_number":258,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"d815eeb6-1fdd-4d56-85e1-d47e5309c353","block_type":"box","text":"partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject to","page_number":258,"box":{"x":117,"y":847,"width":767,"height":12}},{"id":"f9940027-e7fa-4f20-b852-5d273026df42","block_type":"box","text":"state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":258,"box":{"x":116,"y":862,"width":526,"height":12}},{"id":"f7e99ec3-e4fa-4dbc-8dce-2cf2a6a1d3c8","block_type":"box","text":"II-164","page_number":258,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"c944b34f-a7ff-409a-8e9e-b0aecdba47dc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":258,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2d22930c-1ca3-4b61-adb4-6b4aed5aadad","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a","page_number":259,"box":{"x":117,"y":87,"width":738,"height":12}},{"id":"bf3d5756-ad66-4fa0-8df1-a046f21f6c19","block_type":"box","text":"Fund fails to qualify as a regulated investment company under the Code, notwithstanding the","page_number":259,"box":{"x":117,"y":102,"width":694,"height":13}},{"id":"0b8eb4c2-460b-495d-a74b-0fb1d4ace336","block_type":"box","text":"availability of certain relief provisions, such Fund would be taxed in the same manner as an ordinary","page_number":259,"box":{"x":116,"y":118,"width":748,"height":12}},{"id":"cc551453-f5d0-455b-a319-f7f2ef5d26a3","block_type":"box","text":"corporation and all distributions from earnings and profits (as determined under U.S. federal income","page_number":259,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"2bafa08a-938e-410b-9276-3e829b420d24","block_type":"box","text":"tax principles) to its shareholders would be taxable as ordinary dividend income eligible for taxation at","page_number":259,"box":{"x":116,"y":149,"width":759,"height":12}},{"id":"722f3705-92f8-4ff2-abc5-3cdaea3e5ded","block_type":"box","text":"a reduced tax rate for non-corporate shareholders and the dividends-received deduction for corporate","page_number":259,"box":{"x":116,"y":165,"width":760,"height":11}},{"id":"941f8328-a608-4590-8a6b-76093387af19","block_type":"box","text":"shareholders. However, a Municipal Fund’s distributions derived from income on tax-exempt","page_number":259,"box":{"x":116,"y":180,"width":690,"height":12}},{"id":"61fd8618-52e3-4804-a0d3-499115b92728","block_type":"box","text":"obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that","page_number":259,"box":{"x":116,"y":196,"width":771,"height":12}},{"id":"aba75b17-473c-4fa3-ae14-aaaa8cb2643d","block_type":"box","text":"is a series of a regulated investment company that consists of multiple series is treated as a separate","page_number":259,"box":{"x":117,"y":211,"width":756,"height":12}},{"id":"c204cc7f-5ddb-4c95-862b-3a5f3e727c0c","block_type":"box","text":"corporation for U.S. federal income tax purposes, and therefore is considered to be a separate entity in","page_number":259,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"9cb0e74a-94b3-438d-a303-b1c7cda1ff37","block_type":"box","text":"determining its treatment under the rules for regulated investment companies. Losses in one series of","page_number":259,"box":{"x":116,"y":242,"width":760,"height":12}},{"id":"83727ae2-b421-4e4a-aed1-b179f14bbc99","block_type":"box","text":"a regulated investment company do not offset gains in another, and the requirements (other than","page_number":259,"box":{"x":116,"y":258,"width":724,"height":12}},{"id":"250f6ba7-c80f-41a2-9591-19c4e2e1cd27","block_type":"box","text":"certain organizational requirements) for qualifying for regulated investment company status will be","page_number":259,"box":{"x":116,"y":273,"width":732,"height":12}},{"id":"10f661f6-275b-4322-9c37-7f564bc6c47b","block_type":"box","text":"determined at the level of the individual series. In the following discussion, the term “Fund” means","page_number":259,"box":{"x":116,"y":289,"width":731,"height":12}},{"id":"dcbbd73e-fd1f-498f-8a1a-3ab71328f865","block_type":"box","text":"each individual series, if applicable.","page_number":259,"box":{"x":116,"y":304,"width":268,"height":12}},{"id":"1b96a156-f6f2-4825-84d3-7855177bf143","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent","page_number":259,"box":{"x":116,"y":335,"width":772,"height":12}},{"id":"e5165c13-9dc6-48c1-9f2e-0f5bee78daae","block_type":"box","text":"the regulated investment company does not distribute, during each calendar year, at least 98% of its","page_number":259,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"a1ab87b6-3d8b-44c3-806d-9f21f6b8bacd","block_type":"box","text":"ordinary income, determined on a calendar year basis, and at least 98.2% of its capital gain net","page_number":259,"box":{"x":116,"y":366,"width":713,"height":12}},{"id":"38deff6b-50b0-4f21-ad37-10f6720a85d0","block_type":"box","text":"income, determined, in general, as if the regulated investment company’s taxable year ended on","page_number":259,"box":{"x":117,"y":382,"width":720,"height":12}},{"id":"a78d1cbb-81fd-44c2-9d8e-905e1d7f3007","block_type":"box","text":"October 31, plus certain undistributed amounts from the previous years. While each Fund intends to","page_number":259,"box":{"x":116,"y":397,"width":747,"height":12}},{"id":"575ce17b-2089-4ba6-8e22-3b15b38bdfcf","block_type":"box","text":"distribute its income and capital gains in the manner necessary to avoid imposition of the 4% excise","page_number":259,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"1b649e23-08ce-4a43-afe9-fb4b34e73cef","block_type":"box","text":"tax, there can be no assurance that a sufficient amount of the Fund’s taxable income and capital gains","page_number":259,"box":{"x":116,"y":428,"width":765,"height":12}},{"id":"03118253-6414-4acd-81ff-44e5119b45d1","block_type":"box","text":"will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for the","page_number":259,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"6a019435-4857-4bf3-819e-70c3746bd538","block_type":"box","text":"tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":259,"box":{"x":116,"y":459,"width":666,"height":12}},{"id":"ff45225b-f0f3-4b75-97e2-079e80b0ab8e","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year,","page_number":259,"box":{"x":117,"y":490,"width":754,"height":12}},{"id":"a35ae60d-fd36-4c33-be8d-ba811c1be9ed","block_type":"box","text":"until they have been reduced to zero. In the event that the Fund were to experience an ownership","page_number":259,"box":{"x":117,"y":506,"width":729,"height":12}},{"id":"b6de331d-493a-4c52-9bc3-e2819f943d48","block_type":"box","text":"change as defined under the Code, the Fund’s loss carryforwards and other favorable tax attributes of","page_number":259,"box":{"x":116,"y":521,"width":761,"height":12}},{"id":"0bcfd1c2-aebe-4738-b99d-e6f796074792","block_type":"box","text":"the Fund, if any, may be subject to limitation.","page_number":259,"box":{"x":116,"y":537,"width":338,"height":12}},{"id":"76fd32cd-f51b-4f99-8ec0-186dc35eb8dc","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain","page_number":259,"box":{"x":117,"y":568,"width":734,"height":12}},{"id":"afeacebc-c8c7-427a-9811-c303d4c93f61","block_type":"box","text":"over net long-term capital loss (together referred to as “ordinary income dividends”) are taxable to","page_number":259,"box":{"x":116,"y":583,"width":730,"height":12}},{"id":"1908ba2e-e532-4579-b556-b9cdd27f7376","block_type":"box","text":"shareholders as ordinary income. Distributions made from an excess of net long-term capital gain over","page_number":259,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"32a754a3-557d-451c-b432-7ad4776cc8c3","block_type":"box","text":"net short-term capital loss (including gains or losses from certain transactions in futures and options)","page_number":259,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"31c2c34e-9dcf-41b5-b778-cd872a1729cf","block_type":"box","text":"(“capital gain dividends”) are taxable to shareholders as long-term capital gains, regardless of the","page_number":259,"box":{"x":117,"y":630,"width":727,"height":12}},{"id":"753ffddb-1e1f-43bb-b85d-688418b0b887","block_type":"box","text":"length of time the shareholder has owned Fund shares. Distributions paid by a Fund that are reported","page_number":259,"box":{"x":117,"y":645,"width":758,"height":12}},{"id":"444aa9a6-71e8-4519-948c-8a3f0368ed27","block_type":"box","text":"as exempt-interest dividends will not be subject to regular U.S. federal income tax. Certain dividend","page_number":259,"box":{"x":116,"y":661,"width":737,"height":12}},{"id":"f08f1309-cfe4-4e7f-96d9-a88d72f81d98","block_type":"box","text":"income and long-term capital gains are eligible for taxation at a reduced rate that applies to","page_number":259,"box":{"x":117,"y":676,"width":675,"height":12}},{"id":"90ab683c-b101-4d69-a33d-6c145286b965","block_type":"box","text":"non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":259,"box":{"x":117,"y":692,"width":744,"height":12}},{"id":"f4404f1b-1514-42ca-8981-efe2b6d772d2","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate","page_number":259,"box":{"x":116,"y":707,"width":693,"height":12}},{"id":"251adf57-cbce-4da9-bcc7-c3c6a25935e2","block_type":"box","text":"shareholder may be taxable to such shareholder at long-term capital gain rates provided the","page_number":259,"box":{"x":116,"y":723,"width":683,"height":12}},{"id":"9d0f5ef2-5dc0-4b21-ab3b-35924bf62261","block_type":"box","text":"shareholder has held the shares on which the dividend was paid for at least 61 days during the","page_number":259,"box":{"x":116,"y":738,"width":704,"height":12}},{"id":"41232df9-6ca4-402c-b0fd-26b254f07e4e","block_type":"box","text":"121-day period that begins on the date that is 60 days before the date on which the shares become","page_number":259,"box":{"x":118,"y":754,"width":736,"height":12}},{"id":"36f2be93-aee4-4bc8-9bda-7ec2a3b96ebd","block_type":"box","text":"ex-dividend with respect to such dividend (or, in the case of certain accumulated dividends with respect","page_number":259,"box":{"x":116,"y":769,"width":767,"height":12}},{"id":"adf30e5c-5ced-4549-b40f-1c114beb3668","block_type":"box","text":"to preferred stocks, the shareholder has held the shares on which the dividend was paid for at least","page_number":259,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"077ad5b5-0fdf-4305-bb08-9fd28bb7cd2b","block_type":"box","text":"91 days during the 181-day period that begins on the date that is 90 days before the date on which the","page_number":259,"box":{"x":116,"y":800,"width":761,"height":12}},{"id":"181b8e9d-8c77-45e9-8770-9b2c71358f08","block_type":"box","text":"shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s","page_number":259,"box":{"x":116,"y":816,"width":678,"height":12}},{"id":"faa4d9db-318b-4495-981a-e6bcbc16cee3","block_type":"box","text":"distributions are derived from income on debt securities, certain types of preferred stock treated as","page_number":259,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"18fc44df-9c91-42af-972a-16622363120e","block_type":"box","text":"debt for U.S. federal income tax purposes and short-term capital gains, such distributions will not","page_number":259,"box":{"x":116,"y":847,"width":723,"height":12}},{"id":"fd8d3770-c19c-4298-98d7-e98120471e8b","block_type":"box","text":"constitute “qualified dividend income.” In addition, distributions that are derived from securities lending","page_number":259,"box":{"x":116,"y":862,"width":762,"height":12}},{"id":"0014107e-61f5-4801-9a96-53c747c006ad","block_type":"box","text":"income, such as substitute dividend payments, will not constitute “qualified dividend income.”","page_number":259,"box":{"x":117,"y":878,"width":694,"height":12}},{"id":"c90977fd-b54f-4771-967e-5b932a89c715","block_type":"box","text":"II-165","page_number":259,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ea6597fc-c492-4e42-a513-b416663982c0","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":259,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9a6202c5-d055-4303-8901-d212f6c621f7","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and","page_number":260,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"6dd8e34c-fce2-47a4-9354-4f37f4309d7e","block_type":"box","text":"redemption proceeds) of certain individuals, trusts and estates.","page_number":260,"box":{"x":117,"y":102,"width":471,"height":13}},{"id":"6e484058-5a7f-4460-b886-0cb614c9caa3","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses)","page_number":260,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"0859b02a-7667-4715-8a9d-719427c10feb","block_type":"box","text":"is not subject to the 90% distribution requirement for taxation as a regulated investment company,","page_number":260,"box":{"x":117,"y":149,"width":731,"height":12}},{"id":"e2b22116-8fb0-4f4e-88f6-6b3852caabb6","block_type":"box","text":"described above. If a Fund retains net capital gain, it is subject to tax on that gain, and may designate","page_number":260,"box":{"x":116,"y":165,"width":760,"height":12}},{"id":"4e7d529a-8913-43b1-bf6f-718721d30bd4","block_type":"box","text":"the retained amount as undistributed capital gain in a written statement furnished to its shareholders,","page_number":260,"box":{"x":116,"y":180,"width":753,"height":12}},{"id":"564e6044-5ec6-4c86-af95-f7389af36aa6","block_type":"box","text":"who will be required to include in income, as long-term capital gain, their proportionate shares of such","page_number":260,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"dd973262-f754-4139-99a6-9bc73043743c","block_type":"box","text":"undistributed net capital gain, will be deemed to have paid and may claim as a credit against their U.S.","page_number":260,"box":{"x":117,"y":211,"width":765,"height":12}},{"id":"041503f0-75f7-4163-b24e-d9ef43bf8b42","block_type":"box","text":"federal income tax liability (and as a refund to the extent it exceeds that liability) their proportionate","page_number":260,"box":{"x":116,"y":227,"width":737,"height":12}},{"id":"111548aa-bfd5-4d19-8b4a-ee5dfc3a5603","block_type":"box","text":"shares of the tax paid by the Fund on that gain, and shall increase the tax basis of their shares in the","page_number":260,"box":{"x":116,"y":242,"width":753,"height":12}},{"id":"2655f959-d4cc-49c1-8747-59f950b0e795","block_type":"box","text":"Fund by the excess of the amount included in income over the amount allowed as a credit against their","page_number":260,"box":{"x":117,"y":258,"width":768,"height":12}},{"id":"dc6fcbc0-03ec-495a-8c23-845c003f35fb","block_type":"box","text":"taxes.","page_number":260,"box":{"x":116,"y":273,"width":49,"height":10}},{"id":"a03d5ae6-1a2d-4cb4-8c50-86417920a8bf","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the","page_number":260,"box":{"x":117,"y":304,"width":745,"height":12}},{"id":"d8a92b74-7c90-4fa9-9afa-d48303670421","block_type":"box","text":"adjusted tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will","page_number":260,"box":{"x":116,"y":320,"width":713,"height":12}},{"id":"2e7fbfc4-7653-4a28-9ce0-bea1ea2e15d9","block_type":"box","text":"constitute capital gains to such holder (assuming the shares are held as a capital asset). Distributions","page_number":260,"box":{"x":116,"y":335,"width":759,"height":12}},{"id":"62087228-2c45-4337-840b-e31507dc9994","block_type":"box","text":"in excess of a Fund’s minimum distribution requirements (or taxable income) but not in excess of a","page_number":260,"box":{"x":117,"y":351,"width":736,"height":12}},{"id":"78dac544-c363-4599-8872-076181ec69d2","block_type":"box","text":"Fund’s earnings and profits will be taxable to shareholders and will not constitute nontaxable returns of","page_number":260,"box":{"x":117,"y":366,"width":766,"height":12}},{"id":"20e2390d-3933-4ffb-9416-d04035608970","block_type":"box","text":"capital. In the case of a Fund with a non-calendar taxable year, a Fund’s earnings and profits are","page_number":260,"box":{"x":116,"y":382,"width":724,"height":12}},{"id":"4caf9227-7085-4db3-9bf7-bda0d667cd02","block_type":"box","text":"allocated first to distributions made on or before December 31 of the taxable year, and then to","page_number":260,"box":{"x":116,"y":397,"width":702,"height":12}},{"id":"55af9ee2-b97f-4901-8681-2b923917e675","block_type":"box","text":"distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of Fund","page_number":260,"box":{"x":116,"y":413,"width":766,"height":12}},{"id":"4ca566ba-1a2b-4d88-9a2c-686f866dad22","block_type":"box","text":"shares held for six months or less will be treated as long-term capital loss to the extent of any capital","page_number":260,"box":{"x":116,"y":428,"width":751,"height":12}},{"id":"4df8b121-a722-4fc0-8d2b-66e017d28440","block_type":"box","text":"gain dividends received by the shareholder.","page_number":260,"box":{"x":116,"y":444,"width":329,"height":12}},{"id":"39fb36a9-517f-4134-aabd-b84083206f47","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in","page_number":260,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"ce72e14f-d00c-41b6-974c-e2f91326b800","block_type":"box","text":"additional shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains,","page_number":260,"box":{"x":116,"y":490,"width":744,"height":12}},{"id":"7f9138c5-8920-42a2-b1ce-21b2b9f1589a","block_type":"box","text":"generally will not be eligible for the dividends received deduction allowed to corporations under the","page_number":260,"box":{"x":116,"y":506,"width":736,"height":12}},{"id":"44d4e8f4-16cc-494f-8754-842cdd69d49b","block_type":"box","text":"Code. If a Fund pays a dividend in January that was declared in the previous October, November or","page_number":260,"box":{"x":117,"y":521,"width":745,"height":12}},{"id":"140a55e0-180b-4d78-9255-2dc5dab6c30a","block_type":"box","text":"December to shareholders of record on a specified date in one of such months, then such dividend","page_number":260,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"5969aa84-85d6-4637-a4d5-8ee233f2f9e5","block_type":"box","text":"will be treated for tax purposes as being paid by the Fund and received by its shareholders on","page_number":260,"box":{"x":116,"y":552,"width":702,"height":12}},{"id":"5067c14d-6314-4ace-89b6-ce1f0fd83bd7","block_type":"box","text":"December 31 of the year in which the dividend was declared. In the case of a Fund with a","page_number":260,"box":{"x":117,"y":568,"width":670,"height":12}},{"id":"9f56d60d-571b-4297-97d1-cee94e48e3bc","block_type":"box","text":"non-calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable","page_number":260,"box":{"x":117,"y":583,"width":767,"height":12}},{"id":"4dbc5760-57db-4c90-82f5-fcf8c3621e2b","block_type":"box","text":"year, then the Fund will reduce the amounts reported as capital gains. Where possible, such reduction","page_number":260,"box":{"x":116,"y":599,"width":764,"height":12}},{"id":"cb03f333-6392-4f8b-b76c-0fbea0791610","block_type":"box","text":"will first be allocated to dividends made after December 31 of such taxable year. A Fund may elect to","page_number":260,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"c8a5aa1a-617e-4782-8c94-06c337a13d2b","block_type":"box","text":"defer recognizing, until the following taxable year, certain net capital losses arising after October 31 of","page_number":260,"box":{"x":116,"y":630,"width":761,"height":12}},{"id":"fc5bcf07-35ae-4b40-9998-73eab47708e5","block_type":"box","text":"the current taxable year, and certain net ordinary losses arising after October 31 and/or December 31","page_number":260,"box":{"x":116,"y":645,"width":759,"height":12}},{"id":"132c8217-855e-4cfe-9b16-ad5fa3fbdee4","block_type":"box","text":"of the current taxable year. This may have the effect of increasing the amount of dividends otherwise","page_number":260,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"e1077c8e-e9c0-47d1-acc7-b0ba52a2bdb0","block_type":"box","text":"includible in the shareholder’s income with respect to the current taxable year.","page_number":260,"box":{"x":117,"y":676,"width":577,"height":12}},{"id":"7a2c5b49-1dba-46aa-8bac-b43bc5a29d7f","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares.","page_number":260,"box":{"x":117,"y":707,"width":753,"height":12}},{"id":"9bb8e422-58cd-4e9c-9a05-c0fb0e9207fe","block_type":"box","text":"A shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the","page_number":260,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"77237c6c-24ba-4521-97a2-46adf36d4f2a","block_type":"box","text":"shareholder’s tax basis in the converted Investor C Shares and the holding period of the acquired","page_number":260,"box":{"x":116,"y":738,"width":722,"height":12}},{"id":"34573f51-f307-4389-846c-44e50441bff7","block_type":"box","text":"Investor A Shares will include the holding period for the converted Investor C Shares.","page_number":260,"box":{"x":117,"y":754,"width":631,"height":12}},{"id":"9aadedd4-c6a3-4eda-b818-5b6355ceb687","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a","page_number":260,"box":{"x":117,"y":785,"width":754,"height":12}},{"id":"1de150c1-cb13-4076-b6ff-b45a00dc5641","block_type":"box","text":"Fund, but on or before January 31 of the following year, then the loss that the shareholder recognizes","page_number":260,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"1feb67b5-2dda-4fb4-bad6-3bbc705bc063","block_type":"box","text":"on the exchange will be reduced (or the gain increased) to the extent any sales charge paid on the","page_number":260,"box":{"x":116,"y":816,"width":731,"height":12}},{"id":"743aba41-1c69-47cd-a9bc-447048377f42","block_type":"box","text":"exchanged shares reduces any sales charge the shareholder would have owed upon the purchase of","page_number":260,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"c2765556-8f3c-4a63-85ec-bc9b8249d7db","block_type":"box","text":"the new shares in the absence of the exchange privilege. Instead, such sales charge will be treated as","page_number":260,"box":{"x":116,"y":847,"width":765,"height":12}},{"id":"c92f09d0-027e-4f15-a9d5-98ac7f45f94c","block_type":"box","text":"an amount paid for the new shares.","page_number":260,"box":{"x":116,"y":862,"width":268,"height":12}},{"id":"8d363655-4e9b-41cd-9de3-6c8f6f341fbd","block_type":"box","text":"II-166","page_number":260,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d5e4ad26-d94f-4c48-9fd1-4f10f8657307","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":260,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"264f1980-5bd0-4918-8cec-bf96fc342455","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially","page_number":261,"box":{"x":116,"y":87,"width":722,"height":12}},{"id":"000bb70f-aaf8-4775-b887-d8b9a98e6179","block_type":"box","text":"identical shares are acquired (whether through the automatic reinvestment of dividends or otherwise)","page_number":261,"box":{"x":117,"y":102,"width":754,"height":13}},{"id":"9bf348dc-5033-430b-9214-873d0413f7ec","block_type":"box","text":"within a 61-day period beginning 30 days before and ending 30 days after the date on which the","page_number":261,"box":{"x":116,"y":118,"width":717,"height":12}},{"id":"4c7f2c83-4e19-4c6f-9e02-6f1b7f65acfa","block_type":"box","text":"shares are sold or exchanged. In such case, the basis of the shares acquired will be adjusted to reflect","page_number":261,"box":{"x":116,"y":134,"width":767,"height":12}},{"id":"324d11b6-fefc-45dc-9714-420f3cf5ca79","block_type":"box","text":"the disallowed loss.","page_number":261,"box":{"x":116,"y":149,"width":150,"height":10}},{"id":"92de8ab2-8031-4f73-8240-03eb116f3613","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis","page_number":261,"box":{"x":116,"y":176,"width":716,"height":12}},{"id":"3ae406ee-e159-4932-8289-17774536eabb","block_type":"box","text":"information for shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after","page_number":261,"box":{"x":117,"y":192,"width":744,"height":12}},{"id":"d630fa5b-1dbd-40a2-93f8-56c3fbad8877","block_type":"box","text":"that date. This information includes the adjusted cost basis of the shares, the gross proceeds from","page_number":261,"box":{"x":116,"y":207,"width":734,"height":12}},{"id":"f275b30b-b606-43e2-a97f-551d95758544","block_type":"box","text":"disposition, and whether the gain or loss is long-term or short-term. The adjusted cost basis of shares","page_number":261,"box":{"x":116,"y":223,"width":759,"height":12}},{"id":"0ac50281-67d9-40f0-bdb7-74008b97d44c","block_type":"box","text":"will be based on the default cost basis reporting method selected by the Fund, unless a shareholder,","page_number":261,"box":{"x":116,"y":238,"width":751,"height":12}},{"id":"68205a12-6e29-4690-9fe9-cde6c2b1c487","block_type":"box","text":"before the sale or redemption, informs the Fund that it has selected a different IRS-accepted method","page_number":261,"box":{"x":117,"y":254,"width":751,"height":12}},{"id":"088cbce2-c357-46a7-818f-4885a385b2de","block_type":"box","text":"offered by the Fund. These requirements, however, will not apply for investments through an IRA or","page_number":261,"box":{"x":116,"y":269,"width":745,"height":12}},{"id":"2427a304-1e25-4b65-89a0-5e1218951a7f","block_type":"box","text":"other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":261,"box":{"x":116,"y":285,"width":744,"height":12}},{"id":"0b673617-e7ae-4893-9df8-f6c8c9cd942b","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these new cost","page_number":261,"box":{"x":116,"y":300,"width":734,"height":11}},{"id":"5f51025f-24e2-4e26-b40c-b1f09869ec67","block_type":"box","text":"basis reporting requirements apply to them. For shares of a Fund acquired before January 1, 2012,","page_number":261,"box":{"x":117,"y":316,"width":740,"height":12}},{"id":"fc98a664-ed7a-4a19-afe7-f099c90ce61a","block_type":"box","text":"these new requirements will not apply, but the Fund will continue to report to the IRS the gross","page_number":261,"box":{"x":116,"y":331,"width":706,"height":12}},{"id":"f19849e3-24ce-40ff-b8ed-ea29e28d7ddb","block_type":"box","text":"proceeds received by a shareholder from the sale or redemption of such shares.","page_number":261,"box":{"x":117,"y":347,"width":600,"height":12}},{"id":"88ee9c36-8306-49f8-a394-f1fa18fb5752","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts","page_number":261,"box":{"x":117,"y":374,"width":756,"height":12}},{"id":"4482d801-c19d-46ab-b4f7-657b248aea21","block_type":"box","text":"and swap agreements. The U.S. federal income tax treatment of a derivative contract may not be as","page_number":261,"box":{"x":116,"y":389,"width":749,"height":12}},{"id":"18989d48-954f-41a0-b2cc-55458ea33b3d","block_type":"box","text":"favorable as a direct investment in the underlying security and may adversely affect the timing,","page_number":261,"box":{"x":116,"y":405,"width":707,"height":12}},{"id":"b7e118f0-23a4-4a1e-9256-ae12a22dd307","block_type":"box","text":"character and amount of income the Fund realizes from its investments. As a result, a larger portion of","page_number":261,"box":{"x":116,"y":420,"width":764,"height":12}},{"id":"b24d8488-ebd2-4825-8f61-d4f42755e124","block_type":"box","text":"the Fund’s distributions may be treated as ordinary income rather than capital gains. In addition,","page_number":261,"box":{"x":116,"y":436,"width":717,"height":12}},{"id":"8745a8dc-ddbe-40cb-bedb-2627653f859e","block_type":"box","text":"section 1256 contracts held by a Fund at the end of each taxable year (and, for purposes of the 4%","page_number":261,"box":{"x":116,"y":451,"width":742,"height":12}},{"id":"9499563e-edce-40cd-8b8f-e49a7625ea0e","block_type":"box","text":"excise tax, certain other dates as prescribed under the Code) are generally “marked-to-market,” such","page_number":261,"box":{"x":116,"y":467,"width":756,"height":12}},{"id":"72410c96-5e37-4594-90be-4c99086a0bad","block_type":"box","text":"that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":261,"box":{"x":116,"y":482,"width":755,"height":12}},{"id":"46a6abd4-399c-48f9-9e30-73101cfdea70","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount","page_number":261,"box":{"x":116,"y":498,"width":749,"height":12}},{"id":"c45cbe5b-ba95-4fbc-8da9-244a782f3b00","block_type":"box","text":"that must be distributed to meet distribution requirements and avoid the excise tax. In addition, the tax","page_number":261,"box":{"x":116,"y":514,"width":762,"height":11}},{"id":"e737cd9c-02ad-4f61-9df9-84fceb3b1b57","block_type":"box","text":"treatment of certain derivative contracts, such as swap agreements, is unsettled and may be subject to","page_number":261,"box":{"x":116,"y":529,"width":768,"height":12}},{"id":"09d14618-0c09-40e7-96f2-836904d9fc74","block_type":"box","text":"future legislation, regulation or administrative pronouncements issued by the IRS. If such future","page_number":261,"box":{"x":116,"y":544,"width":712,"height":12}},{"id":"afe86d66-1d82-464b-92e8-74a0a9104de6","block_type":"box","text":"guidance limits the Fund’s ability to use derivatives, the Fund may have to find other ways of achieving","page_number":261,"box":{"x":116,"y":560,"width":767,"height":12}},{"id":"69259aa6-833b-4270-b7e9-3ad4faa7eced","block_type":"box","text":"its investment objectives.","page_number":261,"box":{"x":117,"y":576,"width":191,"height":11}},{"id":"3d96592d-9712-495b-9263-bda9581b9174","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional","page_number":261,"box":{"x":117,"y":602,"width":716,"height":13}},{"id":"e93e59ad-bf1c-4f61-b2d9-1d1aeab94de3","block_type":"box","text":"principal contracts rather than as section 1256 contracts. This can affect the type of income earned by","page_number":261,"box":{"x":117,"y":618,"width":762,"height":12}},{"id":"8eedc108-43e3-41e2-8327-997f5dc505e5","block_type":"box","text":"such swap agreements since all the income on a notional principal contract may be ordinary income,","page_number":261,"box":{"x":116,"y":634,"width":752,"height":12}},{"id":"e3ffc573-5605-4c92-87d7-587152ef1470","block_type":"box","text":"whereas 40% of the gain on a section 1256 contract is treated as short-term capital gain taxed at","page_number":261,"box":{"x":116,"y":649,"width":724,"height":12}},{"id":"6c2531f5-7b58-45c1-9f2d-b598b48b9198","block_type":"box","text":"ordinary rates and 60% is treated as long-term capital gain taxed at more favorable rates when","page_number":261,"box":{"x":116,"y":665,"width":703,"height":12}},{"id":"3254a987-3980-4de1-91b9-a89067e129c4","block_type":"box","text":"distributed to shareholders. The rest is long-term capital gain, which may be taxable at more favorable","page_number":261,"box":{"x":116,"y":680,"width":758,"height":12}},{"id":"5e7a5dba-d2ad-43e2-a61d-d02e936a7383","block_type":"box","text":"rates than ordinary income. Proposed regulations interpret what types of swap agreements are to be","page_number":261,"box":{"x":117,"y":696,"width":745,"height":12}},{"id":"8a38b2e0-8130-40a4-8e3d-b64f10be4467","block_type":"box","text":"treated as notional principal contracts rather than as section 1256 contracts. When finalized, these","page_number":261,"box":{"x":116,"y":711,"width":730,"height":12}},{"id":"d1711a00-e0f1-4fe7-ab9f-faf95e4faa0c","block_type":"box","text":"regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":261,"box":{"x":117,"y":727,"width":751,"height":12}},{"id":"9d46f733-0bf1-40c5-b98b-d68556e0be5d","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":261,"box":{"x":116,"y":742,"width":718,"height":12}},{"id":"bd2f2144-1c0a-44d3-9919-6d1ecfa55904","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are","page_number":261,"box":{"x":117,"y":769,"width":714,"height":12}},{"id":"0cea1385-58bc-4c3c-8ec2-26febde47b1b","block_type":"box","text":"issued at a discount or provide for deferred interest. Even though a Fund receives no actual interest","page_number":261,"box":{"x":117,"y":785,"width":740,"height":12}},{"id":"2e09ac49-5aff-4a9e-b4cf-d75190e2ea1b","block_type":"box","text":"payments on these securities, it will be deemed to receive income equal, generally, to a portion of the","page_number":261,"box":{"x":117,"y":800,"width":751,"height":12}},{"id":"a1c1fb59-bbaa-4f43-82df-56d60868d630","block_type":"box","text":"excess of the stated redemption price of the securities over their issue price (“original issue discount”)","page_number":261,"box":{"x":116,"y":816,"width":754,"height":12}},{"id":"7d4ca33c-2611-4a59-9ced-88c0be61eb42","block_type":"box","text":"each year that the securities are held. Since the original issue discount income earned by a Fund in a","page_number":261,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"553f87b6-c3ac-4135-b2c3-cff86ba9ee22","block_type":"box","text":"taxable year may not be represented by cash income, the Fund may have to dispose of securities,","page_number":261,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"506fe31f-259e-484e-aed0-b48c4a1d2754","block_type":"box","text":"which it might otherwise have continued to hold, or borrow to generate cash in order to satisfy its","page_number":261,"box":{"x":116,"y":862,"width":722,"height":12}},{"id":"7354430d-62c7-4f85-ad02-a350cc739413","block_type":"box","text":"distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign currency","page_number":261,"box":{"x":116,"y":878,"width":737,"height":12}},{"id":"cd499b0f-7622-4075-8fb4-d807545af0a2","block_type":"box","text":"II-167","page_number":261,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"459818f2-3bce-4af0-beae-84efdd9157ef","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":261,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4e20e97a-eb96-4131-a806-953b7ad73843","block_type":"box","text":"denominated or referenced debt securities, certain asset-backed securities and contingent payment","page_number":262,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"e26967c6-1fe5-404e-8816-2f10d4613f4d","block_type":"box","text":"and inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of","page_number":262,"box":{"x":116,"y":102,"width":720,"height":13}},{"id":"ed8419ad-080f-4145-a852-f0786a604ed5","block_type":"box","text":"income, including the recognition of taxable income in excess of cash generated by such investments.","page_number":262,"box":{"x":117,"y":118,"width":761,"height":12}},{"id":"1648a4a9-8293-4ea5-8c1a-19ebf0716e74","block_type":"box","text":"Any transaction by the Fund in foreign currencies, foreign currency-denominated debt obligations or","page_number":262,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"651fc461-c72a-4e9f-bd2c-c3b55584df4b","block_type":"box","text":"certain foreign currency options, futures contracts or forward contracts (or similar instruments) may","page_number":262,"box":{"x":116,"y":149,"width":739,"height":12}},{"id":"e771208e-e050-4bb0-8db6-a13e586fa3d2","block_type":"box","text":"give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the","page_number":262,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"cd290c66-ae60-4e72-adbe-52243273e130","block_type":"box","text":"value of the foreign currency concerned. Any such net gains could require a larger dividend toward the","page_number":262,"box":{"x":116,"y":180,"width":766,"height":12}},{"id":"74b78b45-3921-4860-8088-4d19ae811765","block_type":"box","text":"end of the calendar year. Any such net losses will generally reduce and potentially require the","page_number":262,"box":{"x":116,"y":196,"width":700,"height":12}},{"id":"c82df98a-8143-4441-8605-3f00d325ceeb","block_type":"box","text":"recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":262,"box":{"x":117,"y":211,"width":698,"height":12}},{"id":"96b1ba04-8979-46f6-ba44-1fd76dcd51ac","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as","page_number":262,"box":{"x":116,"y":227,"width":753,"height":9}},{"id":"6ffbe5ce-fd3e-4123-a089-eaabfae5e77e","block_type":"box","text":"ordinary income. Any net ordinary losses so created cannot be carried forward by the Fund to offset","page_number":262,"box":{"x":116,"y":242,"width":746,"height":12}},{"id":"2320335e-fe2c-4764-89b6-855bbff823b4","block_type":"box","text":"income or gains earned in subsequent taxable years.","page_number":262,"box":{"x":117,"y":258,"width":398,"height":12}},{"id":"6e771584-475a-442a-b58b-5a57f0b340c9","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other","page_number":262,"box":{"x":116,"y":289,"width":749,"height":12}},{"id":"d9bac036-5d84-42f3-b9db-27f0e95d0247","block_type":"box","text":"than pass-through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S.","page_number":262,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"82b62b58-b54c-46fd-aff5-aa913ed78db3","block_type":"box","text":"withholding tax under existing provisions of the Code applicable to foreign individuals and entities","page_number":262,"box":{"x":116,"y":320,"width":726,"height":12}},{"id":"c4dedf49-6d53-492a-883d-4ad2000e95ce","block_type":"box","text":"unless a reduced rate of withholding or a withholding exemption is provided under applicable treaty","page_number":262,"box":{"x":117,"y":335,"width":738,"height":12}},{"id":"f74b7662-91ca-4f8e-afb7-af6ab2c1e8c5","block_type":"box","text":"law. Capital gain dividends paid to shareholders that are nonresident aliens or foreign entities, if and to","page_number":262,"box":{"x":117,"y":351,"width":766,"height":12}},{"id":"33dc7e04-7ac4-492a-9a01-dca81b0118b5","block_type":"box","text":"the extent properly reported as capital gain dividends, generally will not be subject to a 30%","page_number":262,"box":{"x":116,"y":366,"width":685,"height":12}},{"id":"5205c89a-bc37-4f70-8080-5295001bab36","block_type":"box","text":"withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":262,"box":{"x":116,"y":382,"width":699,"height":12}},{"id":"2a115282-5f90-4f96-b42f-393da8b8ad34","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original","page_number":262,"box":{"x":116,"y":397,"width":771,"height":12}},{"id":"bd562de1-94c0-422c-ae37-93d355aa2913","block_type":"box","text":"issue discount and market discount) and paid to shareholders who are nonresident aliens or foreign","page_number":262,"box":{"x":117,"y":413,"width":743,"height":12}},{"id":"a99446a2-ef58-4cee-b43a-f90a24b57e56","block_type":"box","text":"entities, if and to the extent properly reported as “short-term capital gain dividends” or “interest-related","page_number":262,"box":{"x":116,"y":428,"width":762,"height":12}},{"id":"69ed8c7c-2d03-4815-bddb-05750a4952e3","block_type":"box","text":"dividends”, respectively, generally will not be subject to U.S. withholding tax. Where possible, the","page_number":262,"box":{"x":116,"y":444,"width":725,"height":12}},{"id":"ea9672f3-fe6d-4f27-b5ad-c4f9a86777e4","block_type":"box","text":"Funds intend to report such dividends as interest-related dividends or short-term capital gain dividends.","page_number":262,"box":{"x":117,"y":459,"width":771,"height":12}},{"id":"447ff9eb-4a4c-4c42-8775-c9f4012b64be","block_type":"box","text":"However, depending on its circumstances, a Fund may report all, some or none of its potentially","page_number":262,"box":{"x":117,"y":475,"width":716,"height":12}},{"id":"2b22fafc-0465-4bd8-94aa-e353fa457904","block_type":"box","text":"eligible dividends as interest-related or as short-term capital gain dividends, and/or treat such","page_number":262,"box":{"x":116,"y":490,"width":697,"height":12}},{"id":"e6637fe9-302c-4eed-b422-36e124854b33","block_type":"box","text":"dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":262,"box":{"x":116,"y":506,"width":743,"height":12}},{"id":"61c68b1b-fe0a-4551-b0bb-449b6bf18a48","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification","page_number":262,"box":{"x":116,"y":521,"width":712,"height":12}},{"id":"761dba48-98e2-4043-a225-f0735af1ce99","block_type":"box","text":"requirements relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS","page_number":262,"box":{"x":117,"y":537,"width":757,"height":12}},{"id":"ca659e07-3c4d-4805-83ef-f4b838526192","block_type":"box","text":"Form W-8BEN-E or substitute Form). In the case of shares held through an intermediary, the","page_number":262,"box":{"x":117,"y":552,"width":693,"height":12}},{"id":"0e13df71-377c-4a65-82ee-f0db9f1603b1","block_type":"box","text":"intermediary may withhold even if the Fund reports the payment as an interest-related or short-term","page_number":262,"box":{"x":117,"y":568,"width":743,"height":12}},{"id":"dd313811-58fa-4728-99eb-506140f4f9fd","block_type":"box","text":"capital gain dividend. Foreign shareholders should contact their intermediaries with respect to the","page_number":262,"box":{"x":116,"y":583,"width":727,"height":12}},{"id":"c718bcf4-b05a-4c89-8226-2a66e21770a5","block_type":"box","text":"application of these rules to their accounts. It is not possible to predict what portion, if any, of a Fund’s","page_number":262,"box":{"x":116,"y":599,"width":762,"height":12}},{"id":"774c7e50-14c5-4ecb-b9cf-37778fcb393f","block_type":"box","text":"distributions will be reported as interest-related dividends or short-term capital gain dividends under","page_number":262,"box":{"x":116,"y":614,"width":742,"height":12}},{"id":"5d0dd262-411e-416f-a7e8-6acd1f0f8c94","block_type":"box","text":"these rules.","page_number":262,"box":{"x":116,"y":630,"width":91,"height":9}},{"id":"5cd875fe-15ac-46e5-be9d-41f5257455a6","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S.","page_number":262,"box":{"x":117,"y":661,"width":737,"height":12}},{"id":"55e45386-b1e8-47a1-99d6-3c4162c7fb7d","block_type":"box","text":"real property interests” (as defined in the Code and Treasury regulations) at any time during the five","page_number":262,"box":{"x":117,"y":676,"width":745,"height":12}},{"id":"51be308d-ac65-43fe-8639-46980e7929d5","block_type":"box","text":"year period ending on the date of the distributions, to the extent the distributions are attributable to","page_number":262,"box":{"x":116,"y":692,"width":729,"height":12}},{"id":"0fd0d43b-d275-434a-a5ec-f57af4029e7b","block_type":"box","text":"gains from sales or exchanges of U.S. real property interests (including shares in certain “U.S. real","page_number":262,"box":{"x":116,"y":707,"width":731,"height":12}},{"id":"df3ee30b-b212-4674-a1a2-7b3600486fc9","block_type":"box","text":"property holding corporations” such as certain REITs, although exceptions may apply if any class of","page_number":262,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"c998e714-e263-4473-8d4b-9bec3c0535ae","block_type":"box","text":"stock of such a corporation is regularly traded on an established securities market and the Fund has","page_number":262,"box":{"x":116,"y":738,"width":743,"height":12}},{"id":"638a31c8-fb5c-47df-8b3c-d6f9525f69df","block_type":"box","text":"held no more than 5% of such class of stock at all times during the five-year period ending on the date","page_number":262,"box":{"x":117,"y":754,"width":757,"height":12}},{"id":"f35af68a-36c7-49f0-bce7-14f1cec39ec1","block_type":"box","text":"of the distributions), generally must be treated by such foreign shareholders as income effectively","page_number":262,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"6cb06dd8-f081-4c92-a805-e0e6a9d01e0d","block_type":"box","text":"connected to a trade or business within the United States, which is generally subject to tax at the","page_number":262,"box":{"x":116,"y":785,"width":718,"height":12}},{"id":"200c1ac3-c8c2-4fb9-93d3-27233742bc74","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that","page_number":262,"box":{"x":116,"y":800,"width":743,"height":12}},{"id":"bc637952-481e-42c2-a59a-54105b2c270d","block_type":"box","text":"held no more than 5% of any class of stock of the Fund at all times during the previous one-year period","page_number":262,"box":{"x":117,"y":816,"width":764,"height":12}},{"id":"bf47537f-9506-4d5c-966a-0f7def561156","block_type":"box","text":"ending on the date of the distributions. Such distributions will be subject to U.S. income and","page_number":262,"box":{"x":116,"y":831,"width":685,"height":12}},{"id":"d34194f2-8600-4eab-b428-734403f372b6","block_type":"box","text":"withholding tax and generally will require a foreign shareholder to file a U.S. federal income tax return.","page_number":262,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"c07148ad-d679-46ec-8681-936814c745dc","block_type":"box","text":"If the foreign shareholder held no more than 5% of any class of stock of the Fund at all times during the","page_number":262,"box":{"x":117,"y":862,"width":771,"height":12}},{"id":"a9ed1b0a-8f49-4ffd-adc4-f63ab8870963","block_type":"box","text":"previous one-year period ending on the date of the distributions, the distributions will be taxable as","page_number":262,"box":{"x":117,"y":878,"width":735,"height":12}},{"id":"848a5c75-b7f3-4a0c-b226-95389fddcd6c","block_type":"box","text":"II-168","page_number":262,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"d2453736-a6e0-4476-8a5a-f28219d96734","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":262,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"47597226-065f-47cb-b594-01ac8601b35e","block_type":"box","text":"ordinary dividends and subject to withholding at a 30% or lower treaty rate. In addition, sales or","page_number":263,"box":{"x":116,"y":87,"width":711,"height":12}},{"id":"786884ab-220c-43a3-bb0a-9c4c3c4d79b4","block_type":"box","text":"redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to","page_number":263,"box":{"x":117,"y":102,"width":758,"height":13}},{"id":"ea856e19-7cc7-40c5-ae1f-7fa1cdfde063","block_type":"box","text":"U.S. income and withholding tax and generally will require the foreign shareholder to file a U.S. federal","page_number":263,"box":{"x":117,"y":118,"width":765,"height":12}},{"id":"e296a3ac-1d50-4c93-aa7b-1851f3c892de","block_type":"box","text":"income tax return, although exceptions may apply if more than 50% of the value of the Fund’s shares","page_number":263,"box":{"x":117,"y":134,"width":755,"height":12}},{"id":"c21e84df-fcae-4534-983d-20f4a8f4af4b","block_type":"box","text":"are held by U.S. shareholders or the foreign shareholder selling or redeeming the shares has held no","page_number":263,"box":{"x":116,"y":149,"width":756,"height":12}},{"id":"a0245a70-2e10-40b6-a8f9-15f29e832c99","block_type":"box","text":"more than 5% of any class of stock of the Fund at all times during the five-year period ending on the","page_number":263,"box":{"x":117,"y":165,"width":747,"height":12}},{"id":"cca7bf48-0899-49ff-acd9-984b3124588a","block_type":"box","text":"date of the sale or redemption.","page_number":263,"box":{"x":116,"y":180,"width":233,"height":12}},{"id":"aea5510f-cec0-4b89-87b5-bb44830aa722","block_type":"box","text":"Provided that more than 50% of the value of a Fund’s stock is held by U.S. shareholders, redemptions","page_number":263,"box":{"x":117,"y":211,"width":762,"height":12}},{"id":"d957b81c-bf98-4397-a423-b89841880581","block_type":"box","text":"and other distributions made in the form of U.S. real property interests (including shares in certain","page_number":263,"box":{"x":116,"y":227,"width":730,"height":12}},{"id":"36bef858-3f34-4c2e-af23-a248489e9901","block_type":"box","text":"“U.S. real property holding corporations”, although exceptions may apply if any class of stock of such a","page_number":263,"box":{"x":116,"y":242,"width":768,"height":12}},{"id":"a1bd855f-5b20-488a-8d06-9908c4315490","block_type":"box","text":"corporation is regularly traded on an established securities market and the Fund has held no more than","page_number":263,"box":{"x":116,"y":258,"width":772,"height":12}},{"id":"0d8255bb-80c2-47d8-92e2-da8716e9d096","block_type":"box","text":"5% of such class of stock at all times during the five-year period ending on the date of the distribution)","page_number":263,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"88e4f96a-a1a9-4bdb-9722-ebc64b8dfd02","block_type":"box","text":"generally will cause the Fund to recognize a portion of any unrecognized gain in the U.S. real property","page_number":263,"box":{"x":116,"y":289,"width":763,"height":12}},{"id":"93ab058c-e588-45f4-b10d-67638d85b341","block_type":"box","text":"interests equal to the product of (i) the excess of fair market value of such U.S. real property interests","page_number":263,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"deaa8281-5f95-49bc-85e6-d9ba1fad1d58","block_type":"box","text":"over the Fund’s adjusted bases in such interests and (ii) the greatest foreign ownership percentage of","page_number":263,"box":{"x":116,"y":320,"width":759,"height":12}},{"id":"0dcc95f6-4d36-412c-8573-cb324bb0682e","block_type":"box","text":"the Fund during the five-year period ending on the date of distribution.","page_number":263,"box":{"x":116,"y":335,"width":525,"height":12}},{"id":"767f5d54-420f-49cd-9799-b1e69453c6e4","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the","page_number":263,"box":{"x":116,"y":366,"width":760,"height":12}},{"id":"d985218d-ed6a-459a-923a-fe537d9524c3","block_type":"box","text":"tax filing and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":263,"box":{"x":116,"y":382,"width":752,"height":12}},{"id":"c8a3aba4-67a0-471f-a4e4-dd7a99755bb5","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":263,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"2e321eaf-4c9c-4a5f-9d37-eb497a39002c","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":263,"box":{"x":116,"y":428,"width":598,"height":12}},{"id":"9987bc3f-2795-4e46-8332-e0011c66246b","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other","page_number":263,"box":{"x":116,"y":459,"width":745,"height":12}},{"id":"da33b4ac-99eb-475c-b229-8dac2e578f9d","block_type":"box","text":"income items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other","page_number":263,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"b30b8690-c037-412a-988b-e49c98471da9","block_type":"box","text":"foreign entities. To avoid withholding, foreign financial institutions and investment funds will generally","page_number":263,"box":{"x":116,"y":490,"width":753,"height":12}},{"id":"4038602b-b42a-4ea7-aaa7-ddee09b8f574","block_type":"box","text":"either need to (a) collect and report to the IRS detailed information identifying their U.S. accounts and","page_number":263,"box":{"x":116,"y":506,"width":758,"height":12}},{"id":"563812a6-569c-4d58-a502-a2504d638d87","block_type":"box","text":"U.S. account holders, comply with due diligence procedures for identifying U.S. accounts and withhold","page_number":263,"box":{"x":117,"y":521,"width":763,"height":12}},{"id":"ec46ca1f-a49f-4265-bfa2-9f9701239273","block_type":"box","text":"tax on certain payments made to noncomplying foreign entities and account holders or (b) if an","page_number":263,"box":{"x":116,"y":537,"width":709,"height":12}},{"id":"bf964ea3-6a7a-4f6a-b75b-2e62b837e3e9","block_type":"box","text":"intergovernmental agreement is entered into and implementing legislation is adopted, comply with the","page_number":263,"box":{"x":117,"y":552,"width":758,"height":12}},{"id":"a86e50d7-13aa-4b61-9e55-8455c56b2554","block_type":"box","text":"agreement and legislation. Other foreign entities will generally either need to provide detailed","page_number":263,"box":{"x":116,"y":568,"width":695,"height":12}},{"id":"d6ee8846-6b98-483a-8139-9bf5c8cfe70b","block_type":"box","text":"information identifying each substantial U.S. owner or certify there are no such owners.","page_number":263,"box":{"x":117,"y":583,"width":650,"height":12}},{"id":"6cfa8938-21b0-4d18-88b5-13b05bd2f265","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on","page_number":263,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"15e21fe7-4de1-4c8a-904f-a71232d11033","block_type":"box","text":"ordinary income dividends, capital gain dividends and redemption payments (“backup withholding”).","page_number":263,"box":{"x":116,"y":630,"width":744,"height":12}},{"id":"a4518f02-0389-4a67-913c-29fecce195b4","block_type":"box","text":"Generally, shareholders subject to backup withholding will be non-corporate shareholders for whom no","page_number":263,"box":{"x":117,"y":645,"width":767,"height":12}},{"id":"d7d1b051-500e-453c-a3ff-b444c1a23d14","block_type":"box","text":"certified taxpayer identification number is on file with the Fund or who, to the Fund’s knowledge, have","page_number":263,"box":{"x":116,"y":661,"width":752,"height":12}},{"id":"0933490e-fbf7-48d3-b5d1-b2508118acb3","block_type":"box","text":"furnished an incorrect number. When establishing an account, an investor must certify under penalty of","page_number":263,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"8fc5c95b-7220-4656-a1e2-f1a2679c3195","block_type":"box","text":"perjury that such number is correct and that such investor is not otherwise subject to backup","page_number":263,"box":{"x":117,"y":692,"width":684,"height":12}},{"id":"45d21724-55de-4363-a9ef-788b0962473a","block_type":"box","text":"withholding. Backup withholding is not an additional tax. Any amount withheld generally may be","page_number":263,"box":{"x":116,"y":707,"width":708,"height":12}},{"id":"91dfdec9-28c6-4c9f-994c-5f9b12fc7f47","block_type":"box","text":"allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that","page_number":263,"box":{"x":116,"y":723,"width":745,"height":12}},{"id":"e04abc42-c486-4e84-ab9a-917d4bfe0534","block_type":"box","text":"the required information is timely forwarded to the IRS.","page_number":263,"box":{"x":116,"y":738,"width":405,"height":12}},{"id":"633faae6-d474-477f-8664-167fe1326d96","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","page_number":263,"box":{"x":117,"y":768,"width":739,"height":13}},{"id":"5d4871ab-5df0-42e6-bdfe-9c59b42d3690","block_type":"box","text":"taxable year or $4 million in any combination of taxable years for an individual shareholder or","page_number":263,"box":{"x":116,"y":784,"width":691,"height":13}},{"id":"23e8a4f3-2651-4080-81a3-5bd7ced4778c","block_type":"box","text":"$10 million in any single taxable year or $20 million in any combination of taxable years for a corporate","page_number":263,"box":{"x":116,"y":799,"width":762,"height":13}},{"id":"66e52281-b37a-4d4b-bb88-14a19072c3bf","block_type":"box","text":"shareholder in any single taxable year, the shareholder must file a disclosure statement on IRS Form","page_number":263,"box":{"x":116,"y":816,"width":749,"height":12}},{"id":"567b5edc-1509-4246-9a9b-1e56bc1eaf0c","block_type":"box","text":"8886 with the IRS. Direct shareholders of portfolio securities are in many cases exempted. That a loss","page_number":263,"box":{"x":116,"y":831,"width":763,"height":12}},{"id":"3a0d7222-3c30-4cfe-ac3d-0088f81ef66c","block_type":"box","text":"is reportable under these regulations does not affect the legal determination of whether the taxpayer’s","page_number":263,"box":{"x":117,"y":847,"width":760,"height":12}},{"id":"5febe093-d2cd-4c46-baa5-e0016b034f6e","block_type":"box","text":"treatment of the loss is proper. Shareholders should consult their tax advisors to determine the","page_number":263,"box":{"x":116,"y":862,"width":707,"height":12}},{"id":"df6a1a7d-c7e6-4c01-bc65-2571942957f4","block_type":"box","text":"applicability of these regulations in light of their individual circumstances.","page_number":263,"box":{"x":116,"y":878,"width":544,"height":12}},{"id":"22662620-6c9f-4d38-881a-ed370dd520e4","block_type":"box","text":"II-169","page_number":263,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"f3fa00f0-979b-426c-a433-173b0a2fd337","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":263,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"952279b0-5069-4698-a884-6b32173ebf00","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits,","page_number":264,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"8ce8f493-bb80-49a8-b43b-c40c11e4b94e","block_type":"box","text":"taxable mortgage pools or other investments may cause the Fund to report some or all of its","page_number":264,"box":{"x":116,"y":102,"width":689,"height":13}},{"id":"f94fa510-c6de-4f61-864b-f8b5fefef497","block_type":"box","text":"distributions as “excess inclusion income.” To Fund shareholders, such excess inclusion income may:","page_number":264,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"98bb21d8-ccb8-4cc4-a2ab-97e0a795fb6c","block_type":"box","text":"(i) constitute taxable income, as unrelated business taxable income (“UBTI”) for those shareholders","page_number":264,"box":{"x":117,"y":134,"width":742,"height":12}},{"id":"7ea5e842-4b72-4b5e-8550-68cec3d37cbf","block_type":"box","text":"who would otherwise be tax-exempt such as individual retirement accounts, 401(k) accounts, Keogh","page_number":264,"box":{"x":116,"y":149,"width":749,"height":12}},{"id":"4c20b69e-a401-4fee-b23b-abcca9b16e49","block_type":"box","text":"plans, pension plans and certain charitable entities; (ii) not be offset by otherwise allowable deductions","page_number":264,"box":{"x":117,"y":165,"width":766,"height":12}},{"id":"feeb6f94-6d3c-4313-bfdf-f26deb92d353","block_type":"box","text":"for tax purposes; (iii) not be eligible for reduced U.S. withholding for non-U.S. shareholders even from","page_number":264,"box":{"x":116,"y":180,"width":758,"height":12}},{"id":"4dba6486-3023-4082-a1ab-a7857bcac493","block_type":"box","text":"tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified organizations,”","page_number":264,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"adbc7ab3-76ab-4aa1-a2f0-16e2f65b61d0","block_type":"box","text":"as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":264,"box":{"x":116,"y":211,"width":740,"height":12}},{"id":"be2f0b32-b2fa-4cb8-8fa4-eb2e3e73a556","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so.","page_number":264,"box":{"x":116,"y":227,"width":771,"height":12}},{"id":"fa6be837-fbe9-44bf-9978-0eaea9e8b0b9","block_type":"box","text":"Because information about a REIT’s investments may be inadequate or inaccurate, or because a REIT","page_number":264,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"bcd4b031-3c14-4b1e-ba63-ae224f2462c2","block_type":"box","text":"may change its investment program, the Fund may not be successful in avoiding the consequences","page_number":264,"box":{"x":117,"y":258,"width":744,"height":12}},{"id":"f568522a-53cf-4e9c-9efb-81e549bc2ea3","block_type":"box","text":"described above. Avoidance of investments in REITs that generate excess inclusion income may","page_number":264,"box":{"x":116,"y":273,"width":725,"height":12}},{"id":"c61833cb-603c-4852-b159-076dceeab01e","block_type":"box","text":"require the Fund to forego otherwise attractive investment opportunities.","page_number":264,"box":{"x":117,"y":289,"width":540,"height":12}},{"id":"03dcdeaf-eff3-4e79-9f23-f34d64435d75","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and","page_number":264,"box":{"x":117,"y":320,"width":756,"height":12}},{"id":"8ee6d4e9-5d42-4a60-ae2b-c22ee5ee1b0c","block_type":"box","text":"other taxes imposed by foreign countries. Tax conventions between certain foreign countries and the","page_number":264,"box":{"x":116,"y":335,"width":753,"height":12}},{"id":"62b7186d-a892-447e-beaa-1172c3eff533","block_type":"box","text":"United States may reduce or eliminate such taxes. Shareholders of a Fund more than 50% by value of","page_number":264,"box":{"x":117,"y":351,"width":764,"height":12}},{"id":"4bd1b6bd-e723-43c2-bb7d-b40bf2e183f9","block_type":"box","text":"the assets of which at the close of a taxable year are foreign securities may be able to claim U.S.","page_number":264,"box":{"x":116,"y":366,"width":725,"height":12}},{"id":"41524217-23ed-4778-8ede-8bc301c49911","block_type":"box","text":"foreign tax credits with respect to such foreign taxes paid by the Fund, subject to certain requirements","page_number":264,"box":{"x":116,"y":382,"width":762,"height":12}},{"id":"d35f8614-32cd-4a83-94f0-ca2cc9088805","block_type":"box","text":"and limitations contained in the Code. For example, certain retirement accounts and certain tax-exempt","page_number":264,"box":{"x":116,"y":397,"width":772,"height":12}},{"id":"80ba6434-e8f2-4ccd-9638-8f8f184344bc","block_type":"box","text":"organizations cannot claim foreign tax credits on investments in foreign securities held in a Fund. In","page_number":264,"box":{"x":116,"y":413,"width":743,"height":12}},{"id":"26a4b47c-00ba-4e6c-982d-8fdd822149fa","block_type":"box","text":"addition, a foreign tax credit may be claimed with respect to withholding tax on payments with respect","page_number":264,"box":{"x":116,"y":428,"width":759,"height":12}},{"id":"1da69b4f-1e37-45d3-8ad5-30cad2ed815f","block_type":"box","text":"to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":264,"box":{"x":116,"y":444,"width":724,"height":12}},{"id":"48c0f46d-8411-4a4a-9e9d-865c89f66a8f","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it","page_number":264,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"22eb2613-73eb-4fbd-bda7-d808a119fa62","block_type":"box","text":"will not be able to “pass through” to shareholders the ability to claim a credit or a deduction for the","page_number":264,"box":{"x":116,"y":475,"width":731,"height":12}},{"id":"c8d27464-ba31-49a8-b1d6-4e6c4096cbdf","block_type":"box","text":"related foreign taxes paid by the Fund. Further, to the extent that a Fund engages in securities lending","page_number":264,"box":{"x":117,"y":490,"width":763,"height":12}},{"id":"1eb169cd-f33a-416c-ab42-192a692637c8","block_type":"box","text":"with respect to a security paying income subject to foreign taxes, it may not be able to pass through to","page_number":264,"box":{"x":116,"y":506,"width":763,"height":12}},{"id":"46cf1324-d699-4c57-a517-fc6500fcf8c4","block_type":"box","text":"its shareholders the ability to take a foreign tax credit for those taxes. If a Fund satisfies the applicable","page_number":264,"box":{"x":117,"y":521,"width":762,"height":12}},{"id":"0528e120-837f-4d78-9abc-b265b6c40f05","block_type":"box","text":"requirements, such Fund will be eligible to file an election with the IRS pursuant to which shareholders","page_number":264,"box":{"x":117,"y":537,"width":763,"height":12}},{"id":"c86a5631-4cce-4a41-a80e-6e19a235d8c5","block_type":"box","text":"of the Fund will be required to include their proportionate shares of such foreign taxes in their U.S.","page_number":264,"box":{"x":116,"y":552,"width":733,"height":12}},{"id":"75023be7-62e4-42c4-a842-a166066f1582","block_type":"box","text":"income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":264,"box":{"x":117,"y":568,"width":718,"height":12}},{"id":"cd78ec31-ce1b-428a-beb5-c54f1b766ce6","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as","page_number":264,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"13401729-dfed-4b8f-9579-0f5e645c0c9f","block_type":"box","text":"foreign tax credits against their U.S. income taxes. No deductions for foreign taxes, however, may be","page_number":264,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"2c85f45a-40d2-4a57-b211-a7e80193940d","block_type":"box","text":"claimed by noncorporate shareholders who do not itemize deductions. A shareholder that is a","page_number":264,"box":{"x":116,"y":614,"width":699,"height":12}},{"id":"ad447b0c-903f-499a-b47b-d9233a5b16e0","block_type":"box","text":"nonresident alien individual or a foreign corporation may be subject to U.S. withholding tax on the","page_number":264,"box":{"x":117,"y":630,"width":726,"height":12}},{"id":"5a0975c3-cf73-4cb3-87bf-748f383c7ae1","block_type":"box","text":"income resulting from a Fund’s election described in this paragraph but may not be able to claim a","page_number":264,"box":{"x":117,"y":645,"width":733,"height":12}},{"id":"dd5281d1-5429-44da-90ba-781612850cf3","block_type":"box","text":"credit or deduction against such U.S. tax for the foreign taxes treated as having been paid by such","page_number":264,"box":{"x":116,"y":661,"width":730,"height":12}},{"id":"e0b2aa58-17a1-4456-988a-055d88490e98","block_type":"box","text":"shareholder. A Fund will report annually to its shareholders the amount per share of such foreign taxes","page_number":264,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"ed50b98b-7111-4113-ae68-d07e342c4daa","block_type":"box","text":"and other information needed to claim the foreign tax credit.","page_number":264,"box":{"x":116,"y":692,"width":443,"height":12}},{"id":"5d8b40c0-8fd2-474b-b944-72807f85bb24","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may,","page_number":264,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"137507b6-0d9e-44d3-a38a-0c4d839b3755","block_type":"box","text":"among other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or","page_number":264,"box":{"x":116,"y":738,"width":722,"height":12}},{"id":"c52ba2cd-d3d4-4f29-a80c-41b06ff19839","block_type":"box","text":"otherwise limit the allowance of certain losses or deductions, and (c) accelerate the recognition of","page_number":264,"box":{"x":116,"y":754,"width":724,"height":12}},{"id":"080ab599-3a47-499e-9940-0d0c55b4a5f9","block_type":"box","text":"income without a corresponding receipt of cash (with which to make the necessary distributions to","page_number":264,"box":{"x":117,"y":769,"width":725,"height":12}},{"id":"2ca51709-9688-43c9-816c-43cd1a908003","block_type":"box","text":"satisfy distribution requirements applicable to regulated investment companies). Operation of these","page_number":264,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"38da4002-c357-447b-85e3-66e86e83bea4","block_type":"box","text":"rules could, therefore, affect the character, amount and timing of distributions to shareholders. Special","page_number":264,"box":{"x":117,"y":800,"width":756,"height":12}},{"id":"c5b969df-ebc9-4555-8222-eda0bc62a17b","block_type":"box","text":"tax rules also may require a Fund to mark-to-market certain types of positions in its portfolio (","page_number":264,"box":{"x":116,"y":816,"width":691,"height":12}},{"id":"f45b2125-8fc0-425c-bb01-7556e74e4a0e","block_type":"box","text":"i.e.","page_number":264,"box":{"x":808,"y":816,"width":20,"height":9}},{"id":"bb76e273-8bc9-4797-8744-459450b85df3","block_type":"box","text":", treat","page_number":264,"box":{"x":831,"y":816,"width":42,"height":11}},{"id":"411323bc-8240-42b6-8da8-4d8445d02006","block_type":"box","text":"them as sold on the last day of the taxable year), and may result in the recognition of income without a","page_number":264,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"e22db56d-385d-4681-a7f5-cf376a254325","block_type":"box","text":"corresponding receipt of cash. Funds engaging in transactions affected by these provisions intend to","page_number":264,"box":{"x":116,"y":847,"width":751,"height":12}},{"id":"d9a3f7c2-7868-41ef-9505-3d7b45c8da0f","block_type":"box","text":"monitor their transactions, make appropriate tax elections and make appropriate entries in their books","page_number":264,"box":{"x":117,"y":862,"width":760,"height":12}},{"id":"0e8f4c21-3c00-45c7-98f2-310f89b8a14d","block_type":"box","text":"II-170","page_number":264,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"b2f8706a-82e6-47b9-9df4-ff54927ce24e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":264,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"197da2d0-e808-40e6-a474-65ca4966d6ec","block_type":"box","text":"and records to lessen the effect of these tax rules and avoid any possible disqualification from the","page_number":265,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"e5696e30-1c1c-4017-8cfe-34aede2d3766","block_type":"box","text":"special treatment afforded regulated investment companies under the Code.","page_number":265,"box":{"x":116,"y":102,"width":571,"height":13}},{"id":"c69798ea-30ad-41e9-9b31-825c5674c550","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated","page_number":265,"box":{"x":117,"y":130,"width":687,"height":13}},{"id":"f8bffe72-ab33-4dba-b09d-d673abf89dfd","block_type":"box","text":"instruments, and any of the Fund’s transactions in foreign currencies and hedging activities, are likely","page_number":265,"box":{"x":117,"y":146,"width":756,"height":12}},{"id":"6dae9b0b-e0c6-4c88-bf3c-9cbda0d7b298","block_type":"box","text":"to produce a difference between its book income and the sum of its taxable income and net tax-exempt","page_number":265,"box":{"x":116,"y":161,"width":771,"height":12}},{"id":"aea6f3af-4838-4694-a353-df2815a3f318","block_type":"box","text":"income (if any). If such a difference arises, and the Fund’s book income is less than the sum of its","page_number":265,"box":{"x":117,"y":177,"width":730,"height":12}},{"id":"e6d7151a-b647-4013-b2cf-366617c8d172","block_type":"box","text":"taxable income and net tax-exempt income, the Fund could be required to make distributions","page_number":265,"box":{"x":116,"y":193,"width":695,"height":11}},{"id":"aeecfb6f-7654-40ff-8379-bca6a6920a2e","block_type":"box","text":"exceeding book income to qualify as a RIC that is accorded special tax treatment and to avoid an","page_number":265,"box":{"x":116,"y":208,"width":727,"height":12}},{"id":"ded2740e-d331-425a-bab2-cee425c76677","block_type":"box","text":"entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":265,"box":{"x":116,"y":223,"width":754,"height":13}},{"id":"603bdb5c-7087-4202-bf85-75e88ecabeb5","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax","page_number":265,"box":{"x":117,"y":239,"width":721,"height":12}},{"id":"0a19d76b-9747-4c23-8648-3c77b2ae0eb3","block_type":"box","text":"exempt income, the distribution (if any) of such excess generally will be treated as (i) a dividend to the","page_number":265,"box":{"x":116,"y":254,"width":761,"height":13}},{"id":"5889b429-8dbc-483f-a5be-014379ff0ed7","block_type":"box","text":"extent of the Fund’s remaining earnings and profits (including earnings and profits arising from tax","page_number":265,"box":{"x":116,"y":270,"width":733,"height":12}},{"id":"612b1b61-7812-4515-908e-df544c554591","block_type":"box","text":"exempt income), (ii) thereafter, as a return of capital to the extent of the recipient’s basis in its shares,","page_number":265,"box":{"x":116,"y":285,"width":759,"height":13}},{"id":"05cee442-c6db-482f-9ca3-df9aee084563","block_type":"box","text":"and (iii) thereafter as gain from the sale or exchange of a capital asset.","page_number":265,"box":{"x":116,"y":301,"width":530,"height":12}},{"id":"ea2d040b-6941-4ccc-8a5a-86b8afe0a428","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s","page_number":265,"box":{"x":117,"y":329,"width":361,"height":12}},{"id":"a6675d51-2497-422e-a48b-93fb60773088","block_type":"box","text":"realized losses on sales of shares of underlying funds","page_number":265,"box":{"x":479,"y":329,"width":403,"height":12}},{"id":"4d039def-fa2c-4216-adac-ed7da536ce0e","block_type":"box","text":"may be indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains","page_number":265,"box":{"x":117,"y":344,"width":749,"height":12}},{"id":"f5c68c6d-305d-449c-996f-e95b984d5ecc","block_type":"box","text":"by underlying funds will be recognized as ordinary income by the Fund and would not be offset by the","page_number":265,"box":{"x":117,"y":360,"width":757,"height":12}},{"id":"0fae4b28-df7c-4160-a6d2-392e724a7b28","block_type":"box","text":"Fund’s capital loss carryforwards, if any. Capital loss carryforwards of underlying funds, if any, would","page_number":265,"box":{"x":117,"y":375,"width":751,"height":12}},{"id":"a002e3cf-d75f-487f-a1a9-eed6f4318e43","block_type":"box","text":"not offset net capital gains of the Fund. Each of these effects is caused by the Fund’s expected","page_number":265,"box":{"x":117,"y":391,"width":710,"height":12}},{"id":"56987e8e-96f5-4d9a-96cf-560991f1254d","block_type":"box","text":"investment in the underlying funds and may result in distributions to Fund shareholders being of higher","page_number":265,"box":{"x":117,"y":406,"width":766,"height":12}},{"id":"0a687bc9-5722-48e5-a56c-eea484e16d05","block_type":"box","text":"magnitudes and less likely to qualify for lower capital gain tax rates than if the Fund were to invest","page_number":265,"box":{"x":117,"y":422,"width":730,"height":12}},{"id":"866f0053-d741-4b72-a1e2-2c28fb66498f","block_type":"box","text":"otherwise.","page_number":265,"box":{"x":116,"y":438,"width":81,"height":9}},{"id":"f7fb8906-aea0-4e71-abbd-2fc640f39eea","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":265,"box":{"x":116,"y":465,"width":765,"height":12}},{"id":"d5bb3350-d34e-43ff-a620-82ad42128b3c","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of","page_number":265,"box":{"x":116,"y":481,"width":758,"height":12}},{"id":"26aff305-5a95-444a-a002-1f89c4b08440","block_type":"box","text":"its net income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the","page_number":265,"box":{"x":117,"y":496,"width":752,"height":12}},{"id":"5bd2299b-1055-4ac4-9d7e-e59c6aae36e5","block_type":"box","text":"Fund will be required to report all of the Subsidiary’s net income as ordinary income regardless of","page_number":265,"box":{"x":117,"y":512,"width":726,"height":12}},{"id":"2c2bc571-6568-424f-b63f-2960e057ee86","block_type":"box","text":"whether that income would be treated differently (for example, as capital gain) at the Subsidiary level","page_number":265,"box":{"x":116,"y":527,"width":753,"height":12}},{"id":"38fbda9d-162a-474f-85a1-04e78aa3252c","block_type":"box","text":"and regardless of whether that income is distributed to the Fund. (Previously taxed income will not,","page_number":265,"box":{"x":116,"y":543,"width":738,"height":12}},{"id":"9d3ea3d9-e818-414a-ac4c-c3782998f054","block_type":"box","text":"however, be taxable again when distributed.) If a net loss is realized by the Subsidiary in any taxable","page_number":265,"box":{"x":117,"y":558,"width":751,"height":12}},{"id":"a81f0e0c-8d63-4e7c-84ed-fdd65baed6fd","block_type":"box","text":"year, the loss will generally not be available to offset the Fund’s other income. It is not expected that","page_number":265,"box":{"x":116,"y":574,"width":747,"height":12}},{"id":"e44fe31a-18a0-492a-b35b-3d60f5e2c1d5","block_type":"box","text":"the Subsidiary will be subject to an entity-level federal tax.","page_number":265,"box":{"x":116,"y":589,"width":436,"height":12}},{"id":"63223088-a0d0-459e-86bd-443aa1469acc","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under","page_number":265,"box":{"x":117,"y":617,"width":750,"height":12}},{"id":"e3dc8bfd-8795-4478-a88c-12b16fdfb258","block_type":"box","text":"foreign law, the Fund will generally be treated as owning shares in a passive foreign investment","page_number":265,"box":{"x":116,"y":633,"width":714,"height":12}},{"id":"a7b2c065-adbd-47aa-b1dc-ac2f7f16478f","block_type":"box","text":"company (“PFIC”) for U.S. federal income tax purposes. A Fund may be subject to U.S. federal income","page_number":265,"box":{"x":116,"y":648,"width":769,"height":12}},{"id":"7aa811f4-ff95-4376-b01f-188e615573ba","block_type":"box","text":"tax, and interest charges (at the rate applicable to tax underpayments) on tax liability treated as having","page_number":265,"box":{"x":116,"y":664,"width":761,"height":12}},{"id":"e67827cb-c47d-4252-8773-7cba9266fe7f","block_type":"box","text":"been deferred with respect to certain distributions from such a company and on gain from the","page_number":265,"box":{"x":117,"y":679,"width":691,"height":12}},{"id":"cc9db681-3f27-4953-b008-a84bcc5f8825","block_type":"box","text":"disposition of the shares of such a company (collectively referred to as “excess distributions”), even if","page_number":265,"box":{"x":116,"y":695,"width":752,"height":12}},{"id":"948f2b61-3e67-41f2-996f-fa424ee93114","block_type":"box","text":"such excess distributions are paid by the Fund as a dividend to its shareholders. However, a Fund may","page_number":265,"box":{"x":116,"y":710,"width":766,"height":12}},{"id":"738e8ead-f4d9-4ab0-b503-075e7aa9a9b6","block_type":"box","text":"elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":265,"box":{"x":116,"y":726,"width":753,"height":12}},{"id":"51e15084-29b1-4e2a-9ace-bc03353a9a67","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable","page_number":265,"box":{"x":117,"y":741,"width":734,"height":12}},{"id":"272747b8-b115-406c-a104-11548850035b","block_type":"box","text":"years, unless revoked with consent from the IRS. Under this election, a Fund would recognize as","page_number":265,"box":{"x":116,"y":757,"width":719,"height":12}},{"id":"d0ff0e72-429f-434f-8e89-300cc4b460e4","block_type":"box","text":"ordinary income any increase in the value of its shares as of the close of the taxable year over their","page_number":265,"box":{"x":116,"y":772,"width":737,"height":12}},{"id":"98053e1a-29a3-42c2-9c80-6cdb95c99225","block_type":"box","text":"adjusted tax basis and as ordinary loss any decrease in such value, but only to the extent of previously","page_number":265,"box":{"x":116,"y":788,"width":763,"height":12}},{"id":"3af788b2-7b4a-4096-a764-04f6fff6a0ec","block_type":"box","text":"recognized “mark-to-market” gains. By making the mark-to-market election, a Fund could avoid","page_number":265,"box":{"x":117,"y":803,"width":704,"height":12}},{"id":"b4cc21f9-6ff1-482d-9ceb-676836e2a982","block_type":"box","text":"imposition of the interest charge with respect to excess distributions from PFICs, but in any particular","page_number":265,"box":{"x":117,"y":819,"width":749,"height":12}},{"id":"6a733a5c-8d7a-4b5e-9917-3e271cc1e1d7","block_type":"box","text":"year might be required to recognize income in excess of the distributions it received from PFICs.","page_number":265,"box":{"x":116,"y":834,"width":720,"height":12}},{"id":"4498e558-000c-4201-ae0e-4b1008aaaec5","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","page_number":265,"box":{"x":117,"y":862,"width":746,"height":12}},{"id":"5d1ff271-0d93-4c93-9508-7d0ec88821af","block_type":"box","text":"Code, in lieu of the foregoing requirements, the Fund would be required to include in income each year","page_number":265,"box":{"x":117,"y":878,"width":768,"height":12}},{"id":"d69e1a59-1757-4deb-bef6-6ab78a29a9a4","block_type":"box","text":"II-171","page_number":265,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"cef5cb2b-8ff2-40fe-9141-0a28a4fc3613","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":265,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"56305f7c-28ec-4e91-a89e-856703cbfd7a","block_type":"box","text":"a portion of the ordinary earnings and net capital gains of the qualified electing fund, even if not","page_number":266,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"6bf88aa0-a7b5-4361-bb07-e401578f8969","block_type":"box","text":"distributed to the Fund, and such amounts would be subject to the 90% and excise tax distribution","page_number":266,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"0989cf99-485d-4837-b1ce-28376aa95bd9","block_type":"box","text":"requirements described above. In order to make this election, the Fund would be required to obtain","page_number":266,"box":{"x":117,"y":118,"width":739,"height":12}},{"id":"6fa68081-72d0-46f2-9186-ba051eace397","block_type":"box","text":"certain annual information from the PFICs in which it invests, which may be difficult or impossible to","page_number":266,"box":{"x":116,"y":134,"width":743,"height":12}},{"id":"2d664a85-66e6-44b0-a3d4-ae7402f7d6f3","block_type":"box","text":"obtain.","page_number":266,"box":{"x":116,"y":149,"width":55,"height":10}},{"id":"249e718d-095f-4daf-b78f-2bfc64163adb","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer","page_number":266,"box":{"x":117,"y":179,"width":434,"height":12}},{"id":"36526ca4-92bf-404a-9ef0-dfd9e71dfebc","block_type":"box","text":"all or a portion of its net capital loss (or if","page_number":266,"box":{"x":552,"y":179,"width":305,"height":12}},{"id":"15cd146e-c562-47d4-a77a-e747b08e132e","block_type":"box","text":"there is no net capital loss, any net long-term or short-term capital loss) realized after October and its","page_number":266,"box":{"x":116,"y":194,"width":755,"height":12}},{"id":"d4827dea-7bc7-412f-93fb-72ea27d42bcc","block_type":"box","text":"late-year ordinary loss (defined as the sum of the excess of post-October foreign currency and PFIC","page_number":266,"box":{"x":117,"y":210,"width":748,"height":12}},{"id":"aae7f7c3-3d16-46fe-9ce3-321024c12ba1","block_type":"box","text":"losses over post-October foreign currency and PFIC gains plus the excess of post-December ordinary","page_number":266,"box":{"x":117,"y":225,"width":761,"height":12}},{"id":"df30b37a-8bf8-4f29-ba54-150e5e8386ce","block_type":"box","text":"losses over post-December ordinary income) until the next taxable year in computing its investment","page_number":266,"box":{"x":117,"y":241,"width":743,"height":12}},{"id":"9f36619d-cc80-4409-ba6a-bb03e5bd8e3a","block_type":"box","text":"company taxable income and net capital gain, which will defer the recognition of such realized losses.","page_number":266,"box":{"x":116,"y":256,"width":759,"height":12}},{"id":"cac25c6f-89a0-45e8-a632-76deb0380b37","block_type":"box","text":"Such deferrals and other rules regarding gains and losses realized after October (or December) may","page_number":266,"box":{"x":116,"y":272,"width":752,"height":12}},{"id":"3a3cd9e6-1b39-482c-a707-9be8be55bc0e","block_type":"box","text":"affect the tax character of shareholder distributions.","page_number":266,"box":{"x":116,"y":287,"width":387,"height":10}},{"id":"c8530552-063e-4ec1-88e6-8a5fa65b6794","block_type":"box","text":"Municipal Funds","page_number":266,"box":{"x":116,"y":317,"width":127,"height":12}},{"id":"5d99795b-7c07-4366-8380-42fe56f75b47","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in","page_number":266,"box":{"x":117,"y":339,"width":650,"height":12}},{"id":"f8331a3c-2f7e-43b3-8d64-55b29c5dedea","block_type":"box","text":"Section 852(b)(5) of the Code. Under such section if, at the close of each quarter of a Fund’s taxable","page_number":266,"box":{"x":116,"y":355,"width":753,"height":12}},{"id":"35733590-4dfc-498d-aeac-8e8a3f9bc7ac","block_type":"box","text":"year, at least 50% of the value of the Fund’s total assets consists of obligations exempt from U.S.","page_number":266,"box":{"x":116,"y":370,"width":728,"height":12}},{"id":"84c7f0af-1fee-488b-9fd4-df6079e28fa0","block_type":"box","text":"federal income tax (“tax-exempt obligations”) under Section 103(a) of the Code (relating generally to","page_number":266,"box":{"x":116,"y":386,"width":748,"height":12}},{"id":"2dff0425-5c0e-45d3-843d-a041313226b1","block_type":"box","text":"obligations of a state or local governmental unit), the Fund shall be qualified to pay exempt-interest","page_number":266,"box":{"x":116,"y":401,"width":739,"height":12}},{"id":"a3b3ea4a-0d88-4044-86c0-1580011c393f","block_type":"box","text":"dividends to holders of all outstanding classes of its shares (together the “shareholders”). Exempt","page_number":266,"box":{"x":116,"y":417,"width":728,"height":12}},{"id":"a416c43c-5911-4dc8-b39a-f41e36203608","block_type":"box","text":"interest dividends are dividends or any part thereof paid by a Fund that are attributable to interest on","page_number":266,"box":{"x":117,"y":432,"width":749,"height":12}},{"id":"75ed8b45-62a5-4b4d-9e81-2ee87dd38bd9","block_type":"box","text":"tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":266,"box":{"x":116,"y":448,"width":740,"height":12}},{"id":"9dd6b8fd-8bbc-44a0-93a3-a4d0cee9b6d6","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference","page_number":266,"box":{"x":117,"y":463,"width":727,"height":12}},{"id":"e74822ad-513c-4e47-82a4-7f9fece1e1d3","block_type":"box","text":"items discussed below) among the Fund’s shareholders according to a method (that it believes is","page_number":266,"box":{"x":117,"y":479,"width":725,"height":12}},{"id":"ebeb6f0b-2905-4b67-be62-4b07f90b2ec7","block_type":"box","text":"consistent with the Commission rule permitting the issuance and sale of multiple classes of shares)","page_number":266,"box":{"x":116,"y":494,"width":741,"height":12}},{"id":"f881700f-0afe-47c5-a0bf-4f45c01421d0","block_type":"box","text":"that is based upon the gross income that is allocable to each class of shareholders during the taxable","page_number":266,"box":{"x":116,"y":510,"width":758,"height":12}},{"id":"2fc0fb49-e7fb-42d9-ad3a-f755a4b3e4f4","block_type":"box","text":"year, or such other method as the IRS may prescribe.","page_number":266,"box":{"x":116,"y":525,"width":404,"height":12}},{"id":"19e5110a-ded0-4a03-b53d-79214e4a8e60","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal","page_number":266,"box":{"x":117,"y":555,"width":714,"height":12}},{"id":"22caa61b-fc12-488e-87a5-e0be2d694875","block_type":"box","text":"income tax purposes. Exempt-interest dividends are included, however, in determining the portion, if","page_number":266,"box":{"x":117,"y":570,"width":748,"height":12}},{"id":"82e5e9fd-8df5-415a-9699-9ef1679b532d","block_type":"box","text":"any, of a person’s social security and railroad retirement benefits subject to U.S. federal income taxes.","page_number":266,"box":{"x":116,"y":586,"width":764,"height":12}},{"id":"12bc6644-017e-4625-8681-bebcb1f9d668","block_type":"box","text":"Interest on indebtedness incurred or continued to purchase or carry shares of a regulated investment","page_number":266,"box":{"x":117,"y":601,"width":754,"height":13}},{"id":"cb6d8b87-e1f7-4c52-8d7f-56947f01b7df","block_type":"box","text":"company paying exempt-interest dividends, such as the Fund, will not be deductible by the investor for","page_number":266,"box":{"x":116,"y":617,"width":766,"height":12}},{"id":"b2e68345-efe9-4325-aed3-8d1a9c0af3d2","block_type":"box","text":"U.S. federal income tax purposes to the extent attributable to exempt-interest dividends. Shareholders","page_number":266,"box":{"x":117,"y":632,"width":762,"height":12}},{"id":"ff8bad86-eac1-4e01-9b26-d49ed828facd","block_type":"box","text":"are advised to consult their tax advisors with respect to whether exempt-interest dividends retain the","page_number":266,"box":{"x":116,"y":648,"width":749,"height":12}},{"id":"718165c9-c22a-4ffe-a036-6c6fc50398cb","block_type":"box","text":"exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial user” or","page_number":266,"box":{"x":116,"y":663,"width":717,"height":13}},{"id":"0c195c42-1701-48f5-8a06-bd554398aadb","block_type":"box","text":"“related person” under Code Section 147(a) with respect to property financed with the proceeds of an","page_number":266,"box":{"x":116,"y":679,"width":751,"height":12}},{"id":"8fe5389c-5484-4e25-bab4-e3baabacda5f","block_type":"box","text":"issue of PABs, if any, held by a Fund.","page_number":266,"box":{"x":117,"y":694,"width":277,"height":13}},{"id":"dee4df1b-d57f-4fb2-b34d-7f5be4cca544","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned","page_number":266,"box":{"x":116,"y":724,"width":745,"height":12}},{"id":"786eb234-105a-4c0b-b3dc-f5759cbbf748","block_type":"box","text":"out by the Fund will not be considered exempt interest, and distributions by the Fund of such substitute","page_number":266,"box":{"x":116,"y":740,"width":764,"height":12}},{"id":"9ece9525-c2e5-4e1c-9305-37db9d81b6f1","block_type":"box","text":"payments will not constitute exempt-interest dividends.","page_number":266,"box":{"x":117,"y":755,"width":404,"height":12}},{"id":"831b4586-a6fe-49cc-9cfc-7b89663aa0e4","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a","page_number":266,"box":{"x":117,"y":785,"width":722,"height":12}},{"id":"d8b31669-a946-4438-b4e0-dbb2a364092e","block_type":"box","text":"holder’s shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":266,"box":{"x":117,"y":800,"width":733,"height":12}},{"id":"c11ff414-084f-4c46-8e71-9f3a53dc59e1","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Any loss upon the sale or exchange of","page_number":266,"box":{"x":116,"y":816,"width":753,"height":12}},{"id":"9978368c-52d9-41ed-a8bf-b91552590911","block_type":"box","text":"Fund shares held for six months or less will be disallowed to the extent of any exempt-interest","page_number":266,"box":{"x":117,"y":831,"width":700,"height":12}},{"id":"566d0129-c67a-4699-aa29-c78752d7c88f","block_type":"box","text":"dividends received by the shareholder. In addition, any such loss that is not disallowed under the rule","page_number":266,"box":{"x":116,"y":847,"width":756,"height":12}},{"id":"92acc194-27f2-4f84-89f9-7510cf0b5f55","block_type":"box","text":"stated above will be treated as long-term capital loss to the extent of any capital gain dividends","page_number":266,"box":{"x":116,"y":862,"width":709,"height":12}},{"id":"fb1831cc-bbfa-4a25-a990-3e8fddb6d0aa","block_type":"box","text":"received by the shareholder.","page_number":266,"box":{"x":117,"y":878,"width":216,"height":12}},{"id":"76f064c4-bae7-4ddc-b780-0c7adf1a459e","block_type":"box","text":"II-172","page_number":266,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"7f9ec7e6-cceb-4509-b556-e4f3defdc707","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":266,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ffb5a058-abac-4443-a446-76c0c11cdd7a","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","page_number":267,"box":{"x":116,"y":87,"width":764,"height":12}},{"id":"26e2c37d-d868-47fc-8791-acec8f0fba5f","block_type":"box","text":"market discount will be treated as ordinary income rather than capital gain. This rule may increase the","page_number":267,"box":{"x":117,"y":103,"width":760,"height":12}},{"id":"178846f9-0ebd-404a-8f7d-2b06c148f306","block_type":"box","text":"amount of ordinary income dividends received by shareholders.","page_number":267,"box":{"x":116,"y":118,"width":477,"height":12}},{"id":"e57849ea-cc66-4b1e-9357-fd2aa6228a2e","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a","page_number":267,"box":{"x":116,"y":149,"width":763,"height":12}},{"id":"c7ac17f2-7954-413e-b842-8f43a50ccda1","block_type":"box","text":"bond acquired in the secondary market at a price below redemption value or adjusted issue price if","page_number":267,"box":{"x":117,"y":165,"width":737,"height":12}},{"id":"538d68de-142c-48dc-b166-c51fad758094","block_type":"box","text":"issued with original issue discount. Absent an election by the Fund to include the market discount in","page_number":267,"box":{"x":117,"y":180,"width":744,"height":12}},{"id":"84f4e32a-056e-4da2-96ba-47badc6a7785","block_type":"box","text":"income as it accrues, gain on the Fund’s disposition of such an obligation will be treated as ordinary","page_number":267,"box":{"x":117,"y":196,"width":744,"height":12}},{"id":"c315c005-90ab-4953-a4ee-4b545cea1f45","block_type":"box","text":"income rather than capital gain to the extent of the accrued market discount.","page_number":267,"box":{"x":117,"y":211,"width":571,"height":12}},{"id":"c4ac252d-e43e-4c8b-90c4-29644cc187c8","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative","page_number":267,"box":{"x":116,"y":242,"width":763,"height":12}},{"id":"a45038e8-30e2-45b4-874a-046cff42fc95","block_type":"box","text":"minimum tax. The alternative minimum tax applies to interest received on certain “PABs” issued after","page_number":267,"box":{"x":117,"y":258,"width":753,"height":11}},{"id":"ddee2846-329b-4ba5-8d74-0ad05c700914","block_type":"box","text":"August 7, 1986. PABs are bonds that, although tax-exempt, are used for purposes other than those","page_number":267,"box":{"x":116,"y":273,"width":743,"height":12}},{"id":"69c5faad-9002-43a4-8f02-c051c9250cc9","block_type":"box","text":"generally performed by governmental units and that benefit non-governmental entities (","page_number":267,"box":{"x":116,"y":289,"width":648,"height":12}},{"id":"20e06ec6-72e3-41a1-9741-ded776d421de","block_type":"box","text":"e.g.","page_number":267,"box":{"x":765,"y":291,"width":26,"height":10}},{"id":"9d873e5c-03ee-4924-bcd0-75a485705c40","block_type":"box","text":", bonds","page_number":267,"box":{"x":794,"y":289,"width":58,"height":11}},{"id":"f3ae26fd-0c7d-4b0d-83bb-6f17c8a28203","block_type":"box","text":"used for industrial development or housing purposes). Income received on such bonds is classified as","page_number":267,"box":{"x":117,"y":304,"width":760,"height":12}},{"id":"f26585bd-5b3e-4012-9d54-d07b0670b2bf","block_type":"box","text":"an item of “tax preference,” which could subject certain investors in such bonds, including shareholders","page_number":267,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"53016525-a569-45df-9046-425a1e884d25","block_type":"box","text":"of a Fund, to a federal alternative minimum tax. A Fund will purchase such “PABs” and will report to","page_number":267,"box":{"x":116,"y":335,"width":744,"height":12}},{"id":"a4884930-2491-4eb0-ac41-d9436bd42af3","block_type":"box","text":"shareholders after the close of the calendar year the portion of the Fund’s dividends declared during","page_number":267,"box":{"x":116,"y":351,"width":748,"height":12}},{"id":"81e8ef97-8931-4d02-b6e5-51d0510f9417","block_type":"box","text":"the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":267,"box":{"x":116,"y":366,"width":651,"height":12}},{"id":"7bce10ca-98ac-401c-9a7f-9f2ba243eccc","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules","page_number":267,"box":{"x":117,"y":397,"width":768,"height":12}},{"id":"9adc8ca3-a236-4689-8bc0-14ba44047c49","block_type":"box","text":"governing the taxation of interest rate swaps are not entirely clear and may require a Fund to treat","page_number":267,"box":{"x":116,"y":413,"width":733,"height":12}},{"id":"23aeda58-b4d1-4db7-9380-b4b59192976b","block_type":"box","text":"payments received under such arrangements as ordinary income and to amortize payments made","page_number":267,"box":{"x":117,"y":428,"width":733,"height":12}},{"id":"8b5bcaf9-26ae-4ef4-ae11-d2acd04fbbc6","block_type":"box","text":"under certain circumstances. Because payments received by a Fund in connection with swap","page_number":267,"box":{"x":117,"y":444,"width":697,"height":12}},{"id":"fb830f51-b45a-4e66-964d-66786795603f","block_type":"box","text":"transactions will be taxable rather than tax-exempt and because swap payments made by a Fund will","page_number":267,"box":{"x":116,"y":459,"width":757,"height":12}},{"id":"7b5ea8d6-9d0c-4aa8-9d2a-c6149d6d73d5","block_type":"box","text":"offset both taxable and tax-exempt gross income proportionately, they may result in increased taxable","page_number":267,"box":{"x":116,"y":475,"width":762,"height":12}},{"id":"3c81b7b5-1ffb-4f02-acb5-b50bfbc083d0","block_type":"box","text":"distributions to shareholders.","page_number":267,"box":{"x":116,"y":490,"width":220,"height":10}},{"id":"de08a4d1-8687-4365-b9b0-d45c3cc24090","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in","page_number":267,"box":{"x":117,"y":521,"width":721,"height":12}},{"id":"b07a60be-8776-492c-9fc4-5cf6cbaafc48","block_type":"box","text":"BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund,","page_number":267,"box":{"x":117,"y":537,"width":731,"height":12}},{"id":"77804fe5-786f-4518-bd70-40181c0110ae","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund and BlackRock Pennsylvania Municipal Bond","page_number":267,"box":{"x":117,"y":552,"width":725,"height":12}},{"id":"5b1e170d-0243-4849-833c-c8aaab230802","block_type":"box","text":"Fund, as well as information on economic conditions within each applicable state.","page_number":267,"box":{"x":117,"y":568,"width":608,"height":12}},{"id":"e13376c7-a510-47a3-9368-c6e7bd479ec0","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master","page_number":267,"box":{"x":117,"y":599,"width":723,"height":12}},{"id":"7b711881-863f-445a-9230-ef09f8a17fce","block_type":"box","text":"Portfolio in which it has invested for purposes of satisfying various qualification requirements of the","page_number":267,"box":{"x":117,"y":614,"width":737,"height":12}},{"id":"e10aa3c6-270d-4786-b72a-66d2bedcb23f","block_type":"box","text":"Code applicable to regulated investment companies. Each Master Portfolio is classified either as a","page_number":267,"box":{"x":117,"y":630,"width":734,"height":12}},{"id":"e29dcd5c-ab36-4a25-a1bf-14401a378eaf","block_type":"box","text":"partnership or a separate disregarded entity (depending on the particular Master Portfolio) for U.S.","page_number":267,"box":{"x":117,"y":645,"width":734,"height":12}},{"id":"00ebab4f-acee-4d57-a95c-61b1ee592fea","block_type":"box","text":"federal income tax purposes. If applicable tax provisions were to change the classification of a Master","page_number":267,"box":{"x":116,"y":661,"width":755,"height":12}},{"id":"709f2a85-16a9-4ca5-894d-0cc33b330b46","block_type":"box","text":"Portfolio, then the Board of Directors of a Feeder Fund would determine, in its discretion, the","page_number":267,"box":{"x":117,"y":676,"width":686,"height":11}},{"id":"79333196-dce1-4e00-9263-248f610a0aa0","block_type":"box","text":"appropriate course of action for the Feeder Fund. One possible course of action would be to withdraw","page_number":267,"box":{"x":116,"y":692,"width":755,"height":12}},{"id":"de88e0da-e472-40f6-b2a1-3267941b4e4f","block_type":"box","text":"the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to","page_number":267,"box":{"x":116,"y":707,"width":717,"height":12}},{"id":"925c2254-c7c9-4455-aef3-c93ad3e77564","block_type":"box","text":"manage the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder","page_number":267,"box":{"x":117,"y":723,"width":758,"height":12}},{"id":"7348145d-b7cb-4c0c-bc3a-edcf455de694","block_type":"box","text":"Fund.","page_number":267,"box":{"x":117,"y":738,"width":40,"height":10}},{"id":"ec5aa0f0-6281-4cc4-a384-213985e90940","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states","page_number":267,"box":{"x":116,"y":769,"width":764,"height":12}},{"id":"efc3a507-696f-451d-bcd6-1ce519e61ef0","block_type":"box","text":"exempt from state income taxation dividends paid by regulated investment companies that are derived","page_number":267,"box":{"x":116,"y":785,"width":759,"height":12}},{"id":"e666baeb-ec85-4eef-83a9-95c2cb290bb3","block_type":"box","text":"from interest on U.S. government obligations. State law varies as to whether dividend income","page_number":267,"box":{"x":116,"y":800,"width":693,"height":12}},{"id":"6fa8a6fe-901d-441d-80e3-768ec9a294f6","block_type":"box","text":"attributable to U.S. government obligations is exempt from state income tax.","page_number":267,"box":{"x":116,"y":816,"width":563,"height":12}},{"id":"255b95fd-eba5-4e1f-a44b-b87f7dd7fd5b","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to","page_number":267,"box":{"x":116,"y":847,"width":747,"height":12}},{"id":"22198ece-c373-4698-9e28-620e59e32d4d","block_type":"box","text":"federal, foreign, state or local taxes with respect to their Fund. Foreign investors should consider","page_number":267,"box":{"x":116,"y":862,"width":721,"height":12}},{"id":"b1fd71f9-5201-48b6-b763-151daed6e2fa","block_type":"box","text":"applicable foreign taxes in their evaluation of an investment in a Fund.","page_number":267,"box":{"x":116,"y":878,"width":525,"height":12}},{"id":"ff79939d-f188-4bf9-a9be-1b483ce75fa3","block_type":"box","text":"II-173","page_number":267,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"71e33272-2b08-485c-89da-d58be675f1d0","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":267,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2c8c428f-affa-4e84-b49c-c0b2d7cc157d","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and","page_number":268,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"2ae8b066-3da3-4d34-8930-b258b1ea1ab9","block_type":"box","text":"the regulations issued thereunder as in effect on the date of this SAI. Future legislative or","page_number":268,"box":{"x":116,"y":102,"width":667,"height":13}},{"id":"8f5002bc-c622-4376-8547-9ff12e5af158","block_type":"box","text":"administrative changes or court decisions may significantly change the conclusions expressed in this","page_number":268,"box":{"x":116,"y":118,"width":753,"height":12}},{"id":"5f466c00-0f27-4592-b5ad-9ac212327ea3","block_type":"box","text":"discussion, and any such changes or decisions may have a retroactive effect.","page_number":268,"box":{"x":116,"y":134,"width":581,"height":12}},{"id":"1cfb5b30-2d18-4660-9489-b944aa30963d","block_type":"box","text":"P","page_number":268,"box":{"x":424,"y":180,"width":9,"height":9}},{"id":"c561041f-d538-4e1b-b03e-1bf46a44e16b","block_type":"box","text":"ERFORMANCE","page_number":268,"box":{"x":435,"y":182,"width":96,"height":8}},{"id":"17551e89-7a20-4417-b653-7536fd36cbdf","block_type":"box","text":"D","page_number":268,"box":{"x":531,"y":180,"width":17,"height":9}},{"id":"c2de5c7e-caac-4c35-9d3f-fc0fdf4a59a4","block_type":"box","text":"ATA","page_number":268,"box":{"x":548,"y":182,"width":28,"height":7}},{"id":"1df6c86e-4e69-48d5-93c4-9e3366a59ad9","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":268,"box":{"x":117,"y":211,"width":767,"height":12}},{"id":"d2f1c49f-a32e-47de-b09a-2b097f7c69e7","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or","page_number":268,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"f3a39be2-8508-4d19-8017-0532077c5400","block_type":"box","text":"prospective shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s","page_number":268,"box":{"x":117,"y":242,"width":713,"height":12}},{"id":"b40ffc74-99ff-4ae4-9cdb-e1fa82292eb3","block_type":"box","text":"historical performance and is not intended to indicate future performance. Average annual total return","page_number":268,"box":{"x":117,"y":258,"width":757,"height":12}},{"id":"736a27ee-daf1-4a9e-9229-fb1b1258fc4f","block_type":"box","text":"is determined separately for each class of shares in accordance with a formula specified by the","page_number":268,"box":{"x":117,"y":273,"width":710,"height":12}},{"id":"660419e7-0e8e-4764-860c-c557820435b6","block_type":"box","text":"Commission.","page_number":268,"box":{"x":117,"y":289,"width":101,"height":9}},{"id":"2cbe806a-49d6-4b10-a6e0-3545d62dc8d7","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding","page_number":268,"box":{"x":116,"y":320,"width":767,"height":12}},{"id":"b0629f2f-b24e-49dd-888d-b1d573bf0aa9","block_type":"box","text":"the average annual compounded rates of return (based on net investment income and any realized","page_number":268,"box":{"x":116,"y":335,"width":741,"height":12}},{"id":"a308f7c5-1839-4137-80b8-311b1459e298","block_type":"box","text":"and unrealized capital gains or losses on portfolio investments over such periods) that would equate","page_number":268,"box":{"x":116,"y":351,"width":748,"height":12}},{"id":"1ec49478-af9d-4b7d-b98e-ea56a3b89bb4","block_type":"box","text":"the initial amount invested to the redeemable value of such investment at the end of each period.","page_number":268,"box":{"x":116,"y":366,"width":725,"height":12}},{"id":"5e8bfaa3-0e6a-4a6e-811c-5ff4196a8828","block_type":"box","text":"Average annual total return before taxes is computed assuming all dividends are reinvested and taking","page_number":268,"box":{"x":116,"y":382,"width":768,"height":12}},{"id":"0809cfc2-5ea3-4c53-88ee-bc91ff639e7b","block_type":"box","text":"into account all applicable recurring and nonrecurring expenses, including the maximum sales charge,","page_number":268,"box":{"x":117,"y":397,"width":762,"height":12}},{"id":"c5ab2b7c-fe91-4f92-b120-ac773111bcdd","block_type":"box","text":"in the case of front-end load shares, and the CDSC that would be applicable to a complete redemption","page_number":268,"box":{"x":117,"y":413,"width":765,"height":12}},{"id":"339e534b-d6be-4960-a32b-6d8ac859c948","block_type":"box","text":"of the investment at the end of the specified period in the case of CDSC shares, but does not take into","page_number":268,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"3ee92061-3bc3-484f-b17b-91dc117fe5d6","block_type":"box","text":"account taxes payable on dividends or on redemption.","page_number":268,"box":{"x":116,"y":444,"width":408,"height":12}},{"id":"20d0ffbf-6259-4b8e-b402-1c74a1f17504","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are","page_number":268,"box":{"x":116,"y":475,"width":715,"height":12}},{"id":"5921c1f1-342f-4ceb-8b50-98770d55db09","block_type":"box","text":"computed by finding the average annual compounded rates of return that would equate the initial","page_number":268,"box":{"x":116,"y":490,"width":724,"height":12}},{"id":"be8f4413-2c26-4f2b-affe-76040bea8d7b","block_type":"box","text":"amount invested to the ending value of such investment at the end of each period assuming payment","page_number":268,"box":{"x":116,"y":506,"width":757,"height":12}},{"id":"28c20389-a1b9-40f2-b4fa-9afaca1b2b44","block_type":"box","text":"of taxes on dividends received during such period. Average annual total return after taxes on dividends","page_number":268,"box":{"x":116,"y":521,"width":769,"height":12}},{"id":"7674573d-fe1b-4d1e-8a8d-f5b2537b33b7","block_type":"box","text":"is computed assuming all dividends, less the taxes due on such dividends, are reinvested and taking","page_number":268,"box":{"x":117,"y":537,"width":751,"height":12}},{"id":"5b8fce78-57dc-4cac-8ba7-5fbb31a01ecb","block_type":"box","text":"into account all applicable recurring and nonrecurring expenses, including the maximum sales charge,","page_number":268,"box":{"x":117,"y":552,"width":762,"height":12}},{"id":"e6854458-7e68-4bdf-aca7-ceebc221b9d9","block_type":"box","text":"in the case of front-end load shares and the CDSC that would be applicable to a complete redemption","page_number":268,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"791ddbbe-6d12-4044-ad83-58304b47aa46","block_type":"box","text":"of the investment at the end of the specified period in the case of CDSC shares. The taxes due on","page_number":268,"box":{"x":116,"y":583,"width":733,"height":12}},{"id":"cbb0dc64-7c01-4551-a514-86d2d6e39ed5","block_type":"box","text":"dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal","page_number":268,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"d94363b1-db00-4f46-9c6d-1437b8838d14","block_type":"box","text":"individual income tax rates in effect on the reinvestment date for that dividend. The rates used","page_number":268,"box":{"x":117,"y":614,"width":702,"height":10}},{"id":"ca6d99fa-efa6-4d1c-aec0-f5c6392b80ee","block_type":"box","text":"correspond to the tax character (including eligibility for the maximum 20% tax rate applicable to","page_number":268,"box":{"x":116,"y":630,"width":711,"height":12}},{"id":"3a21de68-a44f-4e0f-833b-76a4083c2c7f","block_type":"box","text":"qualified dividend income) of each dividend. The taxable amount and tax character of each dividend","page_number":268,"box":{"x":116,"y":645,"width":746,"height":12}},{"id":"0465eeae-6a1e-4d28-a60f-92126bb9fb78","block_type":"box","text":"are specified by each Fund on the dividend declaration date, but may be adjusted to reflect subsequent","page_number":268,"box":{"x":116,"y":661,"width":767,"height":12}},{"id":"b14f32d8-9c18-4b62-9ea2-9b5545313389","block_type":"box","text":"recharacterizations of distributions. The applicable tax rates may vary over the measurement period.","page_number":268,"box":{"x":117,"y":676,"width":743,"height":12}},{"id":"49ed45a2-c0e0-4adc-a4b1-d099362fb25f","block_type":"box","text":"The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign credits, are","page_number":268,"box":{"x":116,"y":692,"width":766,"height":12}},{"id":"fe146ef4-872e-479b-ae19-418c2b9b5a58","block_type":"box","text":"taken into account according to U.S. federal tax law. The ending value is determined assuming","page_number":268,"box":{"x":116,"y":707,"width":703,"height":12}},{"id":"f17be498-8c02-4ea5-af48-56053a952a36","block_type":"box","text":"complete redemption at the end of the applicable periods with no tax consequences associated with","page_number":268,"box":{"x":116,"y":723,"width":740,"height":12}},{"id":"49e78a2a-8f5d-4069-9510-8d96a3e9a9bf","block_type":"box","text":"such redemption.","page_number":268,"box":{"x":116,"y":738,"width":127,"height":12}},{"id":"8699163d-d288-40eb-98dd-7f6062dd6c1d","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the","page_number":268,"box":{"x":116,"y":769,"width":709,"height":12}},{"id":"de04a97f-7bbe-498c-8dbc-ccea074d6828","block_type":"box","text":"specified periods are computed by finding the average annual compounded rates of return that would","page_number":268,"box":{"x":116,"y":785,"width":751,"height":12}},{"id":"b1fe58b2-111b-4e69-bbdc-f6abbea78ca6","block_type":"box","text":"equate the initial amount invested to the ending value of such investment at the end of each period","page_number":268,"box":{"x":116,"y":800,"width":732,"height":12}},{"id":"03723e00-0ddf-4efc-b3bd-ac43091ff923","block_type":"box","text":"assuming payment of taxes on dividends received during such period as well as on complete","page_number":268,"box":{"x":116,"y":816,"width":690,"height":12}},{"id":"66429cd7-ad36-4d10-beca-8a50f5ffbf53","block_type":"box","text":"redemption. Average annual total return after taxes on distributions and redemption is computed","page_number":268,"box":{"x":117,"y":831,"width":718,"height":12}},{"id":"4094566b-0396-44a6-ab17-d2786a91ce49","block_type":"box","text":"assuming all dividends, less the taxes due on such dividends, are reinvested and taking into account","page_number":268,"box":{"x":116,"y":847,"width":752,"height":12}},{"id":"93feba22-9091-4b1a-821d-954431cbd2f7","block_type":"box","text":"all applicable recurring and nonrecurring expenses, including the maximum sales charge in the case of","page_number":268,"box":{"x":116,"y":862,"width":768,"height":12}},{"id":"25f122a8-95ae-4840-aa85-9eb5c780c0c8","block_type":"box","text":"front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":268,"box":{"x":116,"y":878,"width":703,"height":12}},{"id":"07eae2a2-a644-48dd-8635-aa8f9026a1f8","block_type":"box","text":"II-174","page_number":268,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"cc5e6565-85db-4b67-b541-213191d6a64a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":268,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"debcb0f5-35cf-4c28-a4cd-0ae514597eb0","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes","page_number":269,"box":{"x":117,"y":87,"width":767,"height":12}},{"id":"a20e3966-7bcc-4fbd-83f2-ab09e0f2e4d4","block_type":"box","text":"of shares, complete redemption and payment of taxes due on such redemption. The ending value is","page_number":269,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"bfa7db08-0a18-4e27-968d-2a9a0db9c7ab","block_type":"box","text":"determined assuming complete redemption at the end of the applicable periods, subtracting capital","page_number":269,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"ba34bd02-df93-43d4-8878-5de211165066","block_type":"box","text":"gains taxes resulting from the redemption and adding the presumed tax benefit from capital losses","page_number":269,"box":{"x":116,"y":134,"width":735,"height":12}},{"id":"93c8b236-61f2-47ed-af30-f4eda03cb9c2","block_type":"box","text":"resulting from redemption. The taxes due on dividends and on the deemed redemption are calculated","page_number":269,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"58cdea02-9eb0-4b60-b890-357e8ec904c2","block_type":"box","text":"by applying the highest applicable marginal U.S. federal individual income tax rates in effect on the","page_number":269,"box":{"x":117,"y":165,"width":737,"height":12}},{"id":"11c4a357-fd11-4119-9673-970b6d746b94","block_type":"box","text":"reinvestment and/or the redemption date. The rates used correspond to the tax character (including","page_number":269,"box":{"x":117,"y":180,"width":743,"height":12}},{"id":"daee9241-9eeb-42eb-b98f-c9af0ab11e04","block_type":"box","text":"eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each component of","page_number":269,"box":{"x":116,"y":196,"width":762,"height":12}},{"id":"6c4b942f-aa2b-4e8c-b9de-ca2c78e9cd3d","block_type":"box","text":"each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":269,"box":{"x":116,"y":211,"width":673,"height":12}},{"id":"adfaae36-30da-468b-98f0-77d17c46a50f","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such","page_number":269,"box":{"x":117,"y":227,"width":767,"height":11}},{"id":"0340a7f4-85ea-4d8a-a0d8-405afab2e403","block_type":"box","text":"as foreign tax credits, are taken into account according to federal law.","page_number":269,"box":{"x":116,"y":242,"width":522,"height":12}},{"id":"3c1bb23f-0693-4e56-9d6f-e2d60bf70ced","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":269,"box":{"x":116,"y":273,"width":760,"height":12}},{"id":"01a8c5e3-5d20-4a09-9523-93aa43df8c95","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of","page_number":269,"box":{"x":117,"y":289,"width":766,"height":12}},{"id":"925ef958-b29a-4335-8726-d61b5eb9bf23","block_type":"box","text":"$1,000 or some other amount, for various periods other than those noted in Part I of each Fund’s SAI.","page_number":269,"box":{"x":116,"y":303,"width":761,"height":13}},{"id":"b99378ad-ce31-4fe8-a2ef-5372e4beffa0","block_type":"box","text":"Such data will be computed as described above, except that (1) as required by the periods of the","page_number":269,"box":{"x":116,"y":320,"width":724,"height":12}},{"id":"c5c66847-9fba-4141-8a78-fa32cf8ee203","block_type":"box","text":"quotations, actual annual, annualized or aggregate data, rather than average annual data, may be","page_number":269,"box":{"x":116,"y":335,"width":733,"height":12}},{"id":"b951a0a2-6d68-4b9a-aa99-daa0593f4ece","block_type":"box","text":"quoted and (2) the maximum applicable sales charges will not be included with respect to annual or","page_number":269,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"ca39fb22-bcb1-463b-a423-c7e14b3b7011","block_type":"box","text":"annualized rates of return calculations. Aside from the impact on the performance data calculations of","page_number":269,"box":{"x":116,"y":366,"width":760,"height":12}},{"id":"cd9cbbd0-4b6e-4e85-92cf-55f79c2b5dc0","block_type":"box","text":"including or excluding the maximum applicable sales charges, actual annual or annualized total return","page_number":269,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"409e4027-ec2e-4aab-969e-bd8d44dfe31d","block_type":"box","text":"data generally will be lower than average annual total return data since the average rates of return","page_number":269,"box":{"x":116,"y":397,"width":734,"height":12}},{"id":"50ec9d8a-1b6d-4bda-b32f-de6f844ed67e","block_type":"box","text":"reflect compounding of return; aggregate total return data generally will be higher than average annual","page_number":269,"box":{"x":117,"y":413,"width":764,"height":12}},{"id":"b5a9c6ca-6e30-4c77-b426-c15ded008d78","block_type":"box","text":"total return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":269,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"8cef3f1c-ba76-4fb1-8742-f70019c8a17e","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on","page_number":269,"box":{"x":116,"y":459,"width":748,"height":12}},{"id":"e37d00c5-a474-4c97-852e-cc2a65f9c56d","block_type":"box","text":"the yield of each security earned during the period by (b) the average daily number of shares","page_number":269,"box":{"x":116,"y":475,"width":694,"height":12}},{"id":"88419fd3-ef68-43c9-a4bc-22faf27452c6","block_type":"box","text":"outstanding during the period that were entitled to receive dividends multiplied by the maximum","page_number":269,"box":{"x":116,"y":490,"width":712,"height":12}},{"id":"5d6ca9a5-fb32-4a8a-a62b-bdc987fbab75","block_type":"box","text":"offering price per share on the last day of the period. Tax equivalent yield quotations will be computed","page_number":269,"box":{"x":116,"y":506,"width":760,"height":12}},{"id":"07843823-8d71-4fc6-bc34-ece90116f3fb","block_type":"box","text":"by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one minus a stated tax rate and","page_number":269,"box":{"x":117,"y":521,"width":723,"height":12}},{"id":"3596e884-2a8f-4cae-a42a-5ffd7cbe008d","block_type":"box","text":"adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":269,"box":{"x":116,"y":537,"width":580,"height":12}},{"id":"1d7c8b24-e11c-44ce-9047-7664bc8766c6","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s","page_number":269,"box":{"x":116,"y":568,"width":728,"height":12}},{"id":"671194a1-5a8c-4358-905a-35d882bf0452","block_type":"box","text":"portfolio, a Fund’s operating expenses and the amount of realized and unrealized net capital gains or","page_number":269,"box":{"x":117,"y":583,"width":754,"height":12}},{"id":"c2adea6c-4cfb-4a5f-96c4-5ddddadbddeb","block_type":"box","text":"losses during the period. The value of an investment in a Fund will fluctuate and an investor’s shares,","page_number":269,"box":{"x":117,"y":599,"width":756,"height":12}},{"id":"e5ba6d74-f7cc-47d4-8262-cbb0ab5b2b9a","block_type":"box","text":"when redeemed, may be worth more or less than their original cost.","page_number":269,"box":{"x":116,"y":614,"width":507,"height":12}},{"id":"a15f44e5-add3-4e45-8356-641c7dc32b0b","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","page_number":269,"box":{"x":117,"y":645,"width":750,"height":12}},{"id":"708edfcf-d5cc-4b51-834b-429fbd58bbcc","block_type":"box","text":"CDSC in the case of CDSC shares applicable to certain investors, as described under “Purchase of","page_number":269,"box":{"x":117,"y":661,"width":738,"height":12}},{"id":"852fbfee-1ced-4360-bf71-e6eef7eb3c26","block_type":"box","text":"Shares” and “Redemption of Shares,” respectively, the total return data quoted by a Fund in","page_number":269,"box":{"x":116,"y":676,"width":681,"height":12}},{"id":"4909fd1b-cef6-4162-8527-763e2c7cc834","block_type":"box","text":"advertisements directed to such investors may take into account the reduced, and not the maximum,","page_number":269,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"54f3aa53-a293-4cc1-81d3-62e8b62eb266","block_type":"box","text":"sales charge or may take into account the CDSC waiver and, therefore, may reflect greater total return","page_number":269,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"2d6c374d-9579-46b9-a91f-04ab38104643","block_type":"box","text":"since, due to the reduced sales charges or the waiver of sales charges, a lower amount of expenses is","page_number":269,"box":{"x":116,"y":723,"width":762,"height":12}},{"id":"0a1bde6e-4542-4fba-8a84-51c560b6bbad","block_type":"box","text":"deducted.","page_number":269,"box":{"x":116,"y":738,"width":72,"height":10}},{"id":"7b13cbd3-b2fd-4752-b1d0-7f746a9754e0","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark","page_number":269,"box":{"x":116,"y":769,"width":731,"height":12}},{"id":"6b4be51b-79d8-496f-bfe3-7651dc03b62e","block_type":"box","text":"index indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average,","page_number":269,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"5eba504c-427f-4fd5-884b-8805383a07ae","block_type":"box","text":"or to other published indices, or to performance data published by Lipper Inc., Morningstar, Inc.","page_number":269,"box":{"x":116,"y":800,"width":706,"height":12}},{"id":"b4ab65ff-54f1-4970-bbbf-1ec9f2eedb8c","block_type":"box","text":"(“Morningstar”),","page_number":269,"box":{"x":117,"y":816,"width":113,"height":12}},{"id":"022d2b38-e1fd-4b22-abdc-22fbe82e1509","block_type":"box","text":"Money Magazine, U.S. News & World Report, BusinessWeek, Forbes Magazine,","page_number":269,"box":{"x":237,"y":816,"width":600,"height":12}},{"id":"2d68f03f-e074-4f1d-9423-b206ee1d5d28","block_type":"box","text":"Fortune Magazine","page_number":269,"box":{"x":116,"y":831,"width":140,"height":12}},{"id":"deb2d50e-620c-4307-8610-d37e2430bb4c","block_type":"box","text":"or other industry publications. When comparing its performance to a market index, a","page_number":269,"box":{"x":257,"y":831,"width":629,"height":12}},{"id":"91b6d516-1886-4975-879a-61a43e3116cc","block_type":"box","text":"Fund may refer to various statistical measures derived from the historical performance of a Fund and","page_number":269,"box":{"x":117,"y":847,"width":753,"height":12}},{"id":"909a571b-0f8d-49cb-b652-109e75f69ae7","block_type":"box","text":"the index, such as standard deviation and beta. As with other performance data, performance","page_number":269,"box":{"x":116,"y":862,"width":700,"height":12}},{"id":"e619292a-dee3-4aac-af8d-94dc26a9f070","block_type":"box","text":"comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":269,"box":{"x":116,"y":878,"width":717,"height":12}},{"id":"d9eb2a50-1f58-482e-84f5-0ea3274b18d1","block_type":"box","text":"II-175","page_number":269,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"4cd38c4b-7645-421c-81fc-80d5cc0b2e2d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":269,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d5583703-989c-4ee5-836f-3d4bca117f52","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted","page_number":270,"box":{"x":117,"y":87,"width":701,"height":12}},{"id":"ca4a8e54-7c2e-4088-bf8a-7ca9b51df90b","block_type":"box","text":"performance ratings assigned by Morningstar in advertising or supplemental sales literature. From time","page_number":270,"box":{"x":117,"y":102,"width":769,"height":13}},{"id":"7a94d59c-e079-40ec-afa2-e1b11c9c3e6d","block_type":"box","text":"to time a Fund may quote in advertisements or other materials other applicable measures of Fund","page_number":270,"box":{"x":116,"y":118,"width":732,"height":12}},{"id":"532acb7d-4de4-4be2-8874-995d030f4c6f","block_type":"box","text":"performance and may also make reference to awards that may be given to the Manager. Certain","page_number":270,"box":{"x":117,"y":134,"width":721,"height":12}},{"id":"710b08fb-688d-47d1-9306-53e5493c9516","block_type":"box","text":"Funds may also compare their performance to composite indices developed by Fund management.","page_number":270,"box":{"x":117,"y":149,"width":742,"height":12}},{"id":"741cc9c4-4ef3-4706-829d-856a249c35dc","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to","page_number":270,"box":{"x":116,"y":180,"width":737,"height":12}},{"id":"66e3ff65-aea6-4aee-b8e3-85e3ce34c5dc","block_type":"box","text":"achieve its investment objectives. This may include information about past, current or possible","page_number":270,"box":{"x":116,"y":196,"width":704,"height":12}},{"id":"ff1f7dc5-2089-479b-8aa9-cf1ec68c83b5","block_type":"box","text":"economic, market, political or other conditions, descriptive information or general principles of investing","page_number":270,"box":{"x":116,"y":211,"width":770,"height":12}},{"id":"450f92e1-b6c0-45ce-a274-0f0cec0b7287","block_type":"box","text":"such as asset allocation, diversification and risk tolerance, discussion of a Fund’s portfolio composition,","page_number":270,"box":{"x":116,"y":227,"width":771,"height":11}},{"id":"3ed0ef4b-438d-4b55-9aea-80d37fb4c5bf","block_type":"box","text":"investment philosophy, strategy or investment techniques, comparisons of the Fund’s performance or","page_number":270,"box":{"x":117,"y":242,"width":757,"height":12}},{"id":"865dcb25-25c1-4241-814b-2ec4e53957d6","block_type":"box","text":"portfolio composition to that of other funds or types of investments, indices relevant to the comparison","page_number":270,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"dc2220a1-c993-483a-852b-b69b6804bb60","block_type":"box","text":"being made, or to a hypothetical or model portfolio. A Fund may also quote various measures of","page_number":270,"box":{"x":117,"y":273,"width":716,"height":12}},{"id":"cbb74817-aac4-444e-9e7d-97bddb33724a","block_type":"box","text":"volatility and benchmark correlation in advertising and other materials, and may compare these","page_number":270,"box":{"x":116,"y":289,"width":711,"height":12}},{"id":"c52bd6fd-da52-4cbf-a9c9-52cc686595b0","block_type":"box","text":"measures to those of other funds or types of investments.","page_number":270,"box":{"x":117,"y":304,"width":432,"height":12}},{"id":"f2a3395b-67fd-46c6-aa18-5efe9c9a99af","block_type":"box","text":"P","page_number":270,"box":{"x":342,"y":351,"width":10,"height":9}},{"id":"b126c90c-2ded-4f9c-a716-fd2fc715f7f6","block_type":"box","text":"ROXY","page_number":270,"box":{"x":353,"y":353,"width":38,"height":7}},{"id":"812ba0dc-328e-44ec-8199-91c14c5c2158","block_type":"box","text":"Y V","page_number":270,"box":{"x":391,"y":351,"width":16,"height":9}},{"id":"5db60959-4e1c-456c-bc66-1332efd9683c","block_type":"box","text":"OTING","page_number":270,"box":{"x":407,"y":353,"width":42,"height":7}},{"id":"0e9ef9fe-b5ef-4a8d-812b-7cc22b7aebba","block_type":"box","text":"P","page_number":270,"box":{"x":450,"y":351,"width":15,"height":9}},{"id":"390410ea-be28-4d1c-9810-577bc22c632a","block_type":"box","text":"OLICIES","page_number":270,"box":{"x":467,"y":353,"width":53,"height":7}},{"id":"a956a624-1415-466e-8cdf-4a9b0156f30b","block_type":"box","text":"AND","page_number":270,"box":{"x":525,"y":353,"width":29,"height":7}},{"id":"005b40aa-fbbe-423a-83d6-faabb8af5836","block_type":"box","text":"P","page_number":270,"box":{"x":555,"y":351,"width":15,"height":9}},{"id":"35c377e4-8f74-49a9-8318-751cd9fc66b3","block_type":"box","text":"ROCEDURES","page_number":270,"box":{"x":572,"y":353,"width":85,"height":7}},{"id":"8c9abb29-231d-4785-9a22-8e47746cff37","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the","page_number":270,"box":{"x":116,"y":382,"width":768,"height":12}},{"id":"6dddee18-33fb-4fc7-b844-8e048151afb3","block_type":"box","text":"Manager pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the","page_number":270,"box":{"x":117,"y":397,"width":749,"height":12}},{"id":"36a714ce-0a4f-4fa4-a760-6283cdc59c8f","block_type":"box","text":"“Active Fund Proxy Voting Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy","page_number":270,"box":{"x":116,"y":413,"width":761,"height":12}},{"id":"46392cf2-3df4-41ee-a9a1-6329531b2efb","block_type":"box","text":"Voting Policy, with respect to certain other Funds, as applicable. Please refer to Part I of this SAI,","page_number":270,"box":{"x":116,"y":428,"width":727,"height":12}},{"id":"fd27da03-9614-47d8-b94c-dd9a41199147","block_type":"box","text":"which discloses the policy applicable to each Fund.","page_number":270,"box":{"x":116,"y":444,"width":385,"height":12}},{"id":"946d1fb0-42b6-431c-92f5-6549524ffd31","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the","page_number":270,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"5ca6df5a-299e-4607-aa50-497ac72ecc23","block_type":"box","text":"BlackRock Active Investment Stewardship — Global Engagement and Voting Guidelines (the “BAIS","page_number":270,"box":{"x":117,"y":490,"width":744,"height":12}},{"id":"052a17bd-cc2c-4fd2-bf9b-87a3de999b30","block_type":"box","text":"Guidelines”). Certain of such Funds, as listed within the Active Fund Proxy Voting Policy and as","page_number":270,"box":{"x":117,"y":506,"width":713,"height":12}},{"id":"0bb567e0-cf6d-4d3e-8d75-cbac27539a1b","block_type":"box","text":"disclosed in Part I of this SAI, follow supplemental guidelines within the BAIS Guidelines that are","page_number":270,"box":{"x":116,"y":521,"width":721,"height":12}},{"id":"d7c0130a-89f5-43b5-8d78-5583b171a00e","block_type":"box","text":"applicable to certain climate and decarbonization issues (the “BAIS Climate and Decarbonization","page_number":270,"box":{"x":116,"y":537,"width":724,"height":12}},{"id":"114336c2-c220-465f-898e-698d66c38a2c","block_type":"box","text":"Stewardship Guidelines”).","page_number":270,"box":{"x":116,"y":552,"width":197,"height":12}},{"id":"083e08aa-7699-4271-8d50-9568d7a0de48","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has","page_number":270,"box":{"x":116,"y":583,"width":709,"height":12}},{"id":"a85dba2e-d1b4-4cdf-958f-42bbc59c8566","block_type":"box","text":"adopted the BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the","page_number":270,"box":{"x":116,"y":599,"width":743,"height":12}},{"id":"0ccd3a45-ec5b-4269-89e8-f6215d8e3f9a","block_type":"box","text":"Global Principles for Benchmark Policies, regional voting guidelines, and engagement priorities, which","page_number":270,"box":{"x":117,"y":614,"width":762,"height":12}},{"id":"a60a844a-e071-47be-ae60-dcc890d0f561","block_type":"box","text":"are each available upon request. In addition, certain of such Funds, as listed within the Index Equity","page_number":270,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"18ce246a-9c68-40b9-ac84-7dfff4e5e062","block_type":"box","text":"Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental guidelines that are","page_number":270,"box":{"x":117,"y":645,"width":765,"height":12}},{"id":"1886bcd2-ab63-4b38-acca-2112f55ea51b","block_type":"box","text":"applicable to certain climate and decarbonization issues (the “BIS Climate and Decarbonization","page_number":270,"box":{"x":116,"y":661,"width":707,"height":12}},{"id":"73444b2a-3a35-4864-9bac-c3259baf1b5f","block_type":"box","text":"Stewardship Guidelines”).","page_number":270,"box":{"x":116,"y":676,"width":191,"height":12}},{"id":"74870b24-c0e1-4aef-b9ac-3f2a7593325d","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy","page_number":270,"box":{"x":117,"y":707,"width":765,"height":12}},{"id":"82f37ef2-6dd6-4818-83be-ee46fe0f4b9c","block_type":"box","text":"when voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy","page_number":270,"box":{"x":116,"y":723,"width":759,"height":12}},{"id":"78a8aec5-99eb-47b0-ae94-e5cb5fb1f07d","block_type":"box","text":"when voting proxies on investments the underlying fund holds. Therefore, the Fund may use the Active","page_number":270,"box":{"x":116,"y":738,"width":764,"height":12}},{"id":"e7ee60a5-3082-4bde-a8ab-5e215b411ee0","block_type":"box","text":"Fund Proxy Voting Policy while an underlying fund may use the Index Equity Fund Proxy Voting Policy,","page_number":270,"box":{"x":117,"y":754,"width":762,"height":12}},{"id":"50a24e28-64a6-4043-9e55-596663f9d6f5","block_type":"box","text":"and the opposite is also true.","page_number":270,"box":{"x":116,"y":769,"width":213,"height":12}},{"id":"2c12a07d-3a1a-4d87-916e-aa7712193fd9","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS","page_number":270,"box":{"x":117,"y":800,"width":711,"height":12}},{"id":"90687162-a7de-4ce2-8f2e-4f5e457bec64","block_type":"box","text":"Guidelines, the Global Principles for Benchmark Policies and the BIS Climate and Decarbonization","page_number":270,"box":{"x":117,"y":816,"width":731,"height":12}},{"id":"a3cc8327-b823-4edf-8561-e49392deae44","block_type":"box","text":"Stewardship Guidelines are attached as Appendix B to this SAI. Only those guidelines that are","page_number":270,"box":{"x":116,"y":831,"width":706,"height":12}},{"id":"a42ff308-78d5-451c-b9a4-2759de285336","block_type":"box","text":"applicable to a particular Fund pursuant to the Active Fund Proxy Voting Policy or the Index Equity","page_number":270,"box":{"x":116,"y":847,"width":735,"height":12}},{"id":"b886063f-e108-48fc-9df7-2fb3d4c40022","block_type":"box","text":"Fund Proxy Voting Policy are considered to form a part of the Fund’s SAI.","page_number":270,"box":{"x":117,"y":862,"width":551,"height":12}},{"id":"553ec869-b2e1-4fe0-9217-841c2a2515fd","block_type":"box","text":"II-176","page_number":270,"box":{"x":479,"y":909,"width":41,"height":9}},{"id":"5b46aa12-92f7-416c-868e-ec89d8b8f771","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":270,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8b60cadc-131e-4081-86fa-acbadd8f4843","block_type":"box","text":"Information on how each Fund voted proxies relating to portfolio securities during the most","page_number":271,"box":{"x":117,"y":87,"width":645,"height":12}},{"id":"68c63051-f5be-4b6e-bb6e-ed23b8098035","block_type":"box","text":"recent 12-month period ended June 30 is available without","page_number":271,"box":{"x":117,"y":103,"width":416,"height":11}},{"id":"3d615dc1-e227-4987-a3e5-fae12010820e","block_type":"box","text":"t charge, (i) at www.blackrock.com/proxyrecords","page_number":271,"box":{"x":532,"y":102,"width":344,"height":13}},{"id":"5fb1f86a-091b-4055-842d-921228191877","block_type":"box","text":"and (ii) on the Commission’s website at http://www.sec.gov.","page_number":271,"box":{"x":116,"y":118,"width":428,"height":12}},{"id":"fbf4a54f-36cb-4fc6-b9af-52ccf93cf20b","block_type":"box","text":"G","page_number":271,"box":{"x":415,"y":165,"width":11,"height":9}},{"id":"9ac51a46-8fcd-422a-a83c-d1cee1d70220","block_type":"box","text":"ENERAL","page_number":271,"box":{"x":428,"y":167,"width":55,"height":7}},{"id":"828a2361-0cbf-4c17-b03d-ca7764395a36","block_type":"box","text":"I","page_number":271,"box":{"x":483,"y":165,"width":8,"height":9}},{"id":"ef029d74-7475-4e87-9105-752097d668ea","block_type":"box","text":"NFORMATION","page_number":271,"box":{"x":494,"y":167,"width":90,"height":7}},{"id":"79118e7d-83f0-4b43-8096-d0e3421eec01","block_type":"box","text":"Description of Shares","page_number":271,"box":{"x":117,"y":196,"width":177,"height":11}},{"id":"0b4b5177-a43e-4552-830f-6db463156a18","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for","page_number":271,"box":{"x":116,"y":219,"width":706,"height":9}},{"id":"e3b3d7d3-810f-43a2-8d32-8d98eab1f95d","block_type":"box","text":"fractional shares held in the election of Directors and generally on other matters submitted to the vote","page_number":271,"box":{"x":116,"y":234,"width":758,"height":12}},{"id":"f64091cb-eae1-4feb-9df1-58ed06afe942","block_type":"box","text":"of shareholders of the Fund. Shareholders of a class that bears distribution and/or service expenses","page_number":271,"box":{"x":116,"y":250,"width":748,"height":12}},{"id":"2f2ff2c2-53cb-4788-8a30-ab53b15e2b42","block_type":"box","text":"have exclusive voting rights with respect to matters relating to such distribution and service","page_number":271,"box":{"x":117,"y":265,"width":679,"height":12}},{"id":"ad7a5dd8-5851-456e-9afe-8b408294e75a","block_type":"box","text":"expenditures. Voting rights are not cumulative, so that the holders of more than 50% of the shares","page_number":271,"box":{"x":116,"y":281,"width":734,"height":12}},{"id":"8e18b3bf-6ffa-4c20-ba5b-695af45c4c04","block_type":"box","text":"voting in the election of Directors can, if they choose to do so, elect all the Directors of a Fund, in which","page_number":271,"box":{"x":116,"y":296,"width":771,"height":12}},{"id":"10e363c7-bc7f-43c9-ab8f-b160eac3498b","block_type":"box","text":"event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":271,"box":{"x":116,"y":312,"width":693,"height":12}},{"id":"df2fffe6-0ee7-4bcd-b9ec-508a666066f3","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment","page_number":271,"box":{"x":117,"y":343,"width":698,"height":12}},{"id":"332234d4-430f-485d-9374-c244c54328c5","block_type":"box","text":"Company Act does not require shareholders to act upon any of the following matters: (i) election of","page_number":271,"box":{"x":117,"y":358,"width":736,"height":12}},{"id":"31cb1c30-a6b2-43f9-ab39-9ce4c06aeb6d","block_type":"box","text":"Directors; (ii) approval of a management agreement; (iii) approval of a distribution agreement; and","page_number":271,"box":{"x":117,"y":374,"width":732,"height":12}},{"id":"1f21bd79-d0f3-4748-addd-c3a384c0ae77","block_type":"box","text":"(iv) ratification of selection of independent accountants. Shares issued are fully paid and","page_number":271,"box":{"x":117,"y":389,"width":658,"height":12}},{"id":"4043c710-f59f-4a8d-b86b-f32b336b76f3","block_type":"box","text":"non-assessable and have no preemptive rights. Redemption and conversion rights are discussed","page_number":271,"box":{"x":117,"y":405,"width":726,"height":12}},{"id":"b4c4dec3-d1fa-42d7-b267-e1ef48fc64d3","block_type":"box","text":"elsewhere herein and in each Fund’s Prospectus. Each share of each class of Common Stock is","page_number":271,"box":{"x":116,"y":420,"width":721,"height":12}},{"id":"2ee9b069-18cf-4e59-b924-73be5bc75f3a","block_type":"box","text":"entitled to participate equally in dividends and distributions declared by a Fund and in the net assets of","page_number":271,"box":{"x":116,"y":436,"width":766,"height":12}},{"id":"0eeeed1d-a052-416b-9d14-47ea969b7bd4","block_type":"box","text":"the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":271,"box":{"x":116,"y":451,"width":608,"height":12}},{"id":"ffa0759b-3dee-4e9e-88af-765c76958b5a","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting","page_number":271,"box":{"x":117,"y":482,"width":762,"height":12}},{"id":"3a4dbe8b-812a-423e-82e0-5ab8aaa82a92","block_type":"box","text":"of shareholders be held upon the written request of a minimum percentage of the outstanding shares","page_number":271,"box":{"x":116,"y":498,"width":754,"height":12}},{"id":"ef2400a2-3f0f-4138-ad0e-4f75bf2c3e4e","block_type":"box","text":"of the Fund entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":271,"box":{"x":116,"y":513,"width":663,"height":12}},{"id":"727c800d-9225-4733-a3d8-ab9647a74afa","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":271,"box":{"x":117,"y":544,"width":738,"height":12}},{"id":"57f53796-d196-413c-abdd-652c412d290b","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for","page_number":271,"box":{"x":116,"y":560,"width":772,"height":12}},{"id":"77ffcaf0-3a16-40af-a36d-2f7d34c902af","block_type":"box","text":"its obligations. However, the Declaration of Trust establishing a trust, a copy of which for each","page_number":271,"box":{"x":117,"y":575,"width":701,"height":12}},{"id":"13c1bdcf-c4e0-4d05-9a90-04ff883c1d88","block_type":"box","text":"applicable Fund, together with all amendments thereto (the “Declaration of Trust”), is on file in the","page_number":271,"box":{"x":116,"y":591,"width":729,"height":12}},{"id":"0befc8f7-b9e2-4e37-a3c4-82095de15741","block_type":"box","text":"office of the Secretary of the Commonwealth of Massachusetts, contains an express disclaimer of","page_number":271,"box":{"x":116,"y":606,"width":731,"height":12}},{"id":"428c5c12-a089-4328-8db8-20abcdd07beb","block_type":"box","text":"shareholder liability for acts or obligations of the trust and provides for indemnification and","page_number":271,"box":{"x":116,"y":622,"width":672,"height":12}},{"id":"9e569fc9-3d0b-47c0-87b7-204193d2278b","block_type":"box","text":"reimbursement of expenses out of the trust property for any shareholder held personally liable for the","page_number":271,"box":{"x":117,"y":637,"width":754,"height":12}},{"id":"96303b24-bd46-4b3e-8085-08fc1260493e","block_type":"box","text":"obligations of the trust. The Declaration of Trust also provides that a trust may maintain appropriate","page_number":271,"box":{"x":116,"y":653,"width":742,"height":12}},{"id":"d13aee16-7446-4d3e-a6b2-da1b066ca76a","block_type":"box","text":"insurance (for example, fidelity bond and errors and omissions insurance) for the protection of the trust,","page_number":271,"box":{"x":117,"y":668,"width":765,"height":12}},{"id":"0a27219d-cba0-4a4a-8f7c-cfab648fff8a","block_type":"box","text":"its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":271,"box":{"x":117,"y":684,"width":740,"height":12}},{"id":"429e298a-862d-42a6-bf8e-bf25c0ce4a66","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to","page_number":271,"box":{"x":116,"y":699,"width":740,"height":13}},{"id":"3a045112-7c1b-4028-9fcc-113aec6a56ac","block_type":"box","text":"circumstances in which both inadequate insurance existed and the trust itself was unable to meet its","page_number":271,"box":{"x":116,"y":715,"width":743,"height":12}},{"id":"f0d28990-2b09-4f8b-9dd3-c4fa30d1c81a","block_type":"box","text":"obligations.","page_number":271,"box":{"x":116,"y":731,"width":83,"height":12}},{"id":"d3d217b4-4f05-454e-9add-6c6ee5d145c5","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":271,"box":{"x":117,"y":761,"width":428,"height":13}},{"id":"1dda845b-f3ec-4c30-9d24-48c12322f8f8","block_type":"box","text":"Additional Information","page_number":271,"box":{"x":116,"y":792,"width":178,"height":10}},{"id":"35b1e605-6542-475b-831c-1fc9017879de","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock”","page_number":271,"box":{"x":117,"y":816,"width":742,"height":12}},{"id":"458afb96-127f-413b-a263-e5c113a66104","block_type":"box","text":"name and has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the","page_number":271,"box":{"x":117,"y":831,"width":746,"height":12}},{"id":"04fdeffd-309f-4705-913a-9d43180624a7","block_type":"box","text":"Fund ceases to retain BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as","page_number":271,"box":{"x":117,"y":847,"width":709,"height":12}},{"id":"86b13da3-23e3-42a9-8b72-4fd953d1a7ce","block_type":"box","text":"investment adviser and (ii) to grant the use of such name to any other company.","page_number":271,"box":{"x":117,"y":862,"width":599,"height":12}},{"id":"0e723180-ffaf-48d1-bb0d-85f3b2d9d183","block_type":"box","text":"II-177","page_number":271,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"5795a506-f510-489c-bd49-3e851ebe9504","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":271,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f5ee31cf-4931-4d2f-a6bc-e01b6fb85766","block_type":"box","text":"Appendix A","page_number":272,"box":{"x":453,"y":87,"width":98,"height":12}},{"id":"b5a5367d-8ce1-4a4f-8f50-f0df24f90d4e","block_type":"box","text":"Description of Bond Ratings","page_number":272,"box":{"x":387,"y":118,"width":231,"height":12}},{"id":"e4e0edd4-c68e-46eb-b20c-8e63c96f78ba","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating","page_number":272,"box":{"x":116,"y":149,"width":722,"height":12}},{"id":"5aaf2856-2921-4666-8397-ab4744ca91da","block_type":"box","text":"agency designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC.","page_number":272,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"c1797cd6-c557-469f-baa5-189f610deffa","block_type":"box","text":"While NRSROs may from time to time revise such ratings, they undertake no obligation to do so, and","page_number":272,"box":{"x":116,"y":180,"width":755,"height":12}},{"id":"19c62562-3237-4c0e-a836-31449fc7f9e6","block_type":"box","text":"the ratings given to securities at issuance do not necessarily represent ratings which would be given to","page_number":272,"box":{"x":116,"y":196,"width":767,"height":12}},{"id":"430d2230-7c20-404e-aa28-2d57b3fcc324","block_type":"box","text":"these securities on a particular subsequent date.","page_number":272,"box":{"x":116,"y":211,"width":366,"height":12}},{"id":"2385c694-b118-47ca-a5bf-924959b792e1","block_type":"box","text":"NRSROs may rate specific investments (e.g., bonds), issuers (e.g., corporations, governments and","page_number":272,"box":{"x":117,"y":242,"width":740,"height":12}},{"id":"aeb2d4e2-8eba-416b-9384-68f4b147f87b","block_type":"box","text":"financial institutions) and/or programs (e.g., commercial paper programs). However, certain types of","page_number":272,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"e33fbd7b-5a06-47d9-a73d-c3991a39693a","block_type":"box","text":"investments may not be rated by NRSROs, such as certain government/sovereign obligations, US","page_number":272,"box":{"x":117,"y":273,"width":732,"height":12}},{"id":"161477be-9732-4c37-9d75-c389983bb49c","block_type":"box","text":"agency securities, commercial paper, time deposits at financial institutions, and derivative instruments","page_number":272,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"9700a9b5-f160-4740-8dc4-6f9a2a59cbe1","block_type":"box","text":"such as credit default swaps. For these types of investments, as well as US Treasury securities (some","page_number":272,"box":{"x":116,"y":304,"width":764,"height":12}},{"id":"14f25469-1221-4f96-8592-1211502a2662","block_type":"box","text":"of which are not rated), where a NRSRO has not rated the specific investment but has rated the","page_number":272,"box":{"x":116,"y":320,"width":716,"height":12}},{"id":"fa85964f-7db5-447f-b47c-3d9d7ab39e3d","block_type":"box","text":"investment’s issuer, program, financial institution or underlying reference asset, BlackRock Advisors,","page_number":272,"box":{"x":117,"y":335,"width":751,"height":12}},{"id":"0265dc5d-1f99-4aa1-9aba-1e95bde2ef70","block_type":"box","text":"LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider the investment","page_number":272,"box":{"x":117,"y":351,"width":766,"height":12}},{"id":"c465df7f-f8b5-4650-aeff-ed92cdad2ee0","block_type":"box","text":"to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":272,"box":{"x":116,"y":366,"width":736,"height":12}},{"id":"8c95db2b-565a-4feb-bcb4-5e586af14c11","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings","page_number":272,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"276bda8e-d4df-432a-a43a-a3504f738d02","block_type":"box","text":"for the same security (e.g., “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider","page_number":272,"box":{"x":116,"y":397,"width":770,"height":12}},{"id":"59ae6d0d-ed6e-445b-b41e-ecbdc1a24c8e","block_type":"box","text":"the security to have the highest of the multiple ratings.","page_number":272,"box":{"x":116,"y":413,"width":407,"height":12}},{"id":"fed820ce-9685-4913-b1b2-dc7bd7b0c2b2","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial","page_number":272,"box":{"x":117,"y":444,"width":722,"height":12}},{"id":"83a68920-2d19-43d0-ab55-66510c59c850","block_type":"box","text":"offering. Preliminary prospectuses or term sheets for new issue securities may include an expected","page_number":272,"box":{"x":116,"y":459,"width":742,"height":12}},{"id":"a16b40b9-d905-466a-8ceb-a147fd422ecc","block_type":"box","text":"rating for the security (as determined by the underwriter and/or issuer) or a NRSRO rating for the","page_number":272,"box":{"x":117,"y":475,"width":723,"height":12}},{"id":"1bf07620-b019-456b-ae3c-8728543749e1","block_type":"box","text":"issuer of the security. If applicable, when deciding whether to purchase a new issue security that has","page_number":272,"box":{"x":117,"y":490,"width":752,"height":12}},{"id":"fd7e32b2-9704-4dee-ac35-d39bb7e24b32","block_type":"box","text":"not yet been rated by a NRSRO, BlackRock may attribute an expected rating to the security based on:","page_number":272,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"28807172-0347-40ec-be72-9bc052e7cbfb","block_type":"box","text":"(i) the expected rating of the security set forth in the preliminary prospectus or term sheet for the","page_number":272,"box":{"x":117,"y":521,"width":718,"height":12}},{"id":"19bd900e-b237-402c-b305-3a2bc3707956","block_type":"box","text":"security; (ii) the NRSRO’s rating for the issuer of the security set forth in the preliminary prospectus or","page_number":272,"box":{"x":116,"y":537,"width":760,"height":12}},{"id":"31cb7422-f24c-4d44-acec-21801f101054","block_type":"box","text":"term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a prior issuance","page_number":272,"box":{"x":116,"y":552,"width":767,"height":12}},{"id":"ed41a69f-a8e4-4d3d-9b3d-87e1227a5bb7","block_type":"box","text":"having a similar structure or the same sponsor.","page_number":272,"box":{"x":117,"y":568,"width":353,"height":12}},{"id":"dca6ae25-fe97-4c9a-a6f5-a4aac96326be","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit","page_number":272,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"1551a71a-3386-4371-9086-bd79dc834b7e","block_type":"box","text":"ratings eligibility criteria as part of its index methodology, the fund may purchase any security within the","page_number":272,"box":{"x":117,"y":614,"width":771,"height":12}},{"id":"de3806bb-3636-4386-b530-70b6cf8079ba","block_type":"box","text":"index, such security having been determined by the index provider as meeting its credit ratings","page_number":272,"box":{"x":117,"y":630,"width":707,"height":12}},{"id":"9910a176-f6c7-4ff2-ae47-5d28374ecf24","block_type":"box","text":"eligibility criteria. The credit ratings practices of an index provider may differ from BlackRock’s","page_number":272,"box":{"x":116,"y":645,"width":701,"height":12}},{"id":"19a85216-bc67-4a4c-9f97-e799ef2556c1","block_type":"box","text":"practices, as described above. Further, the fund may invest, directly or indirectly, in securities that are","page_number":272,"box":{"x":117,"y":661,"width":754,"height":12}},{"id":"a788634e-0fa3-4d3f-acaa-150eae87ff7a","block_type":"box","text":"not rated by a rating agency or securities with a credit rating that differs from the credit rating specified","page_number":272,"box":{"x":117,"y":676,"width":757,"height":12}},{"id":"94a9f861-56c4-4641-b1fe-6a0cbc4347a4","block_type":"box","text":"in its index methodology in various circumstances, including where a security is downgraded but not","page_number":272,"box":{"x":117,"y":692,"width":741,"height":12}},{"id":"dbf7cfc5-b031-4bb4-915e-0067b19cef65","block_type":"box","text":"yet removed from an index, following the removal of a security from an index prior to its sale by the","page_number":272,"box":{"x":116,"y":707,"width":733,"height":12}},{"id":"c0fbdee8-2a96-42ec-87f0-49df5ab3a473","block_type":"box","text":"fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the","page_number":272,"box":{"x":116,"y":723,"width":734,"height":12}},{"id":"49397987-b1fe-4462-a760-1cf8317ecb59","block_type":"box","text":"fund.","page_number":272,"box":{"x":116,"y":738,"width":36,"height":10}},{"id":"dca1631f-a3cc-4260-993b-9c6c714529c8","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to","page_number":272,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"6c8a7d35-0a70-4b02-a1f0-5d640e7aa2d7","block_type":"box","text":"pay interest or repay principal which are similar to the risks of lower-rated speculative bonds.","page_number":272,"box":{"x":117,"y":785,"width":686,"height":12}},{"id":"b388b48f-7a95-4531-8e7d-f6b586a60f4b","block_type":"box","text":"Evaluation of these securities is dependent on BlackRock’s judgment, analysis and experience in the","page_number":272,"box":{"x":117,"y":800,"width":747,"height":12}},{"id":"1927e1fe-2d91-4540-8f02-d90ab4772665","block_type":"box","text":"evaluation of such securities.","page_number":272,"box":{"x":116,"y":816,"width":214,"height":9}},{"id":"45c7f680-624b-4b63-a6d1-5665a185bc4d","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the","page_number":272,"box":{"x":117,"y":847,"width":745,"height":12}},{"id":"cacfacbf-7357-47e6-98c6-3c39cffc9129","block_type":"box","text":"effect of recent developments on the issuer’s ability to make interest and principal payments or on the","page_number":272,"box":{"x":116,"y":862,"width":760,"height":12}},{"id":"3f633e30-39a7-4b15-a348-74998010de5c","block_type":"box","text":"likelihood of default.","page_number":272,"box":{"x":117,"y":878,"width":152,"height":9}},{"id":"59b79628-ca94-4439-a74b-ac4899d51e8b","block_type":"box","text":"A-1","page_number":272,"box":{"x":486,"y":909,"width":24,"height":9}},{"id":"3b3c816c-3d70-4ad0-bc04-cda42865371b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":272,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d4155844-7d42-4125-bd8a-92ed3a19b2b1","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global","page_number":273,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"bb8113ee-04ee-4555-95b7-d84fd6c93fca","block_type":"box","text":"Ratings and Fitch.","page_number":273,"box":{"x":117,"y":103,"width":139,"height":12}},{"id":"0731d9ee-3b19-4975-a189-d2f9ea102710","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":273,"box":{"x":116,"y":134,"width":674,"height":12}},{"id":"72a30eff-5eb9-448b-8ab5-cea41459f373","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":273,"box":{"x":116,"y":165,"width":677,"height":12}},{"id":"c6b0574d-a309-46cd-b63a-01d888aed7bf","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking","page_number":273,"box":{"x":117,"y":196,"width":711,"height":12}},{"id":"df015327-3b77-4009-aa68-857768e4d4f1","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial","page_number":273,"box":{"x":116,"y":211,"width":759,"height":12}},{"id":"35136826-702c-44e9-81f7-9ca892cc93a9","block_type":"box","text":"institutions, structured finance vehicles, project finance vehicles, and public sector entities. Moody’s","page_number":273,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"b47dda16-462b-4979-97b1-c1fb9e53c35f","block_type":"box","text":"defines credit risk as the risk that an entity may not meet its contractual financial obligations as they","page_number":273,"box":{"x":116,"y":242,"width":744,"height":12}},{"id":"f2719424-96b2-4726-8d76-8d9693dc365d","block_type":"box","text":"come due and any estimated financial loss in the event of default or impairment. The contractual","page_number":273,"box":{"x":116,"y":258,"width":720,"height":12}},{"id":"273b65ae-ad22-4f0c-bc4d-c1bc3b87b3ba","block_type":"box","text":"financial obligations addressed by Moody’s ratings are those that call for, without regard to","page_number":273,"box":{"x":116,"y":273,"width":676,"height":12}},{"id":"6ce74470-4f68-4206-b2c5-0e387e6fd966","block_type":"box","text":"enforceability, the payment of an ascertainable amount, which may vary based upon standard sources","page_number":273,"box":{"x":116,"y":289,"width":765,"height":12}},{"id":"8830eb06-bbd3-4ca7-9bae-de3ba36ba81e","block_type":"box","text":"of variation (e.g., floating interest rates), by an ascertainable date. Moody’s rating addresses the","page_number":273,"box":{"x":116,"y":304,"width":719,"height":12}},{"id":"848d3ac0-0eb0-4ec0-bdb0-fe1e340ae795","block_type":"box","text":"issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s","page_number":273,"box":{"x":117,"y":320,"width":738,"height":12}},{"id":"984d54be-848e-4afd-9e7b-8257ff47c6f0","block_type":"box","text":"ratings do not address non-standard sources of variation in the amount of the principal obligation (e.g.,","page_number":273,"box":{"x":117,"y":335,"width":765,"height":12}},{"id":"4e5a769f-1c47-4671-b361-701cbf61081f","block_type":"box","text":"equity indexed), absent an express statement to the contrary in a press release accompanying an","page_number":273,"box":{"x":116,"y":351,"width":731,"height":12}},{"id":"5204efeb-48e3-4a5a-871e-ea2282ac5dde","block_type":"box","text":"initial rating. Long-term ratings are assigned to issuers or obligations with an original maturity of one","page_number":273,"box":{"x":117,"y":366,"width":745,"height":12}},{"id":"3fe1b500-d3d5-424e-85cd-53a2a8d97917","block_type":"box","text":"year or more and reflect both on the likelihood of a default or impairment on contractual financial","page_number":273,"box":{"x":116,"y":382,"width":719,"height":12}},{"id":"ba0a66bd-be11-468f-88bd-cb7523263dd4","block_type":"box","text":"obligations and the expected financial loss suffered in the event of default or impairment. Short-term","page_number":273,"box":{"x":116,"y":397,"width":747,"height":12}},{"id":"8105f070-dccb-42fc-9854-8cbe2819eeb6","block_type":"box","text":"ratings are assigned for obligations with an original maturity of thirteen months or less and reflect both","page_number":273,"box":{"x":117,"y":413,"width":760,"height":12}},{"id":"441ceef9-d647-4bd3-9b17-ca706bf6b31a","block_type":"box","text":"on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":273,"box":{"x":116,"y":428,"width":717,"height":12}},{"id":"3cb4c1f7-7ad1-4916-aab2-9d465c1283e2","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":273,"box":{"x":116,"y":444,"width":755,"height":12}},{"id":"68a64a34-edbe-4cce-bc34-343ba22b1884","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made","page_number":273,"box":{"x":116,"y":459,"width":761,"height":12}},{"id":"052adae6-6e00-4cf7-8a13-e4575d637239","block_type":"box","text":"publicly available although private and unpublished ratings may also be assigned.","page_number":273,"box":{"x":117,"y":475,"width":610,"height":12}},{"id":"63c4618e-5ee8-43e6-bebb-6d0015c81607","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (i.e., ratings on nonfinancial","page_number":273,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"a4351e3f-1310-44e7-99f2-875dee677561","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to","page_number":273,"box":{"x":116,"y":521,"width":769,"height":12}},{"id":"eb6be5e3-b3e5-44d8-8020-38d8eee995e0","block_type":"box","text":"all structured finance ratings. The addition of (sf) to structured finance ratings should eliminate any","page_number":273,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"29743274-bb19-4bd0-86d0-eba5eee8697c","block_type":"box","text":"presumption that such ratings and fundamental ratings at the same letter grade level will behave the","page_number":273,"box":{"x":117,"y":552,"width":747,"height":12}},{"id":"72d3816c-b81c-48db-94ac-5f5ae675371f","block_type":"box","text":"same. The (sf) indicator for structured finance security ratings indicates that otherwise similarly rated","page_number":273,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"7f656448-a086-4619-8bae-7b9b4a7feac9","block_type":"box","text":"structured finance and fundamental securities may have different risk characteristics. Through its","page_number":273,"box":{"x":116,"y":583,"width":724,"height":12}},{"id":"4f465737-091f-43ad-b4f6-d8a16bf76f01","block_type":"box","text":"current methodologies, however, Moody’s aspires to achieve broad expected equivalence in structured","page_number":273,"box":{"x":116,"y":599,"width":769,"height":12}},{"id":"2843f74a-9e90-4d80-a87d-a0c6be088d0f","block_type":"box","text":"finance and fundamental rating performance when measured over a long period of time.","page_number":273,"box":{"x":116,"y":614,"width":658,"height":12}},{"id":"86aba489-4d0a-45f9-bfe5-fdcdde1fc776","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":273,"box":{"x":117,"y":645,"width":445,"height":12}},{"id":"75105bce-14fd-40f3-bf6f-823e68f846b5","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of","page_number":273,"box":{"x":116,"y":676,"width":726,"height":12}},{"id":"3bf9b738-2384-4855-9718-db2d32da9846","block_type":"box","text":"credit risk.","page_number":273,"box":{"x":175,"y":692,"width":75,"height":9}},{"id":"9187ef89-9eb3-4aa7-bcd6-6b155eedd2ba","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":273,"box":{"x":116,"y":715,"width":731,"height":12}},{"id":"67eb897f-720a-4aaa-b6a0-2ac6c9e679df","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":273,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"9372c581-1d9b-4357-bbe6-17f27cf133c0","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and","page_number":273,"box":{"x":117,"y":761,"width":753,"height":13}},{"id":"0d2796bb-dd0e-4741-8064-342176e1a050","block_type":"box","text":"as such may possess certain speculative characteristics.","page_number":273,"box":{"x":175,"y":777,"width":420,"height":12}},{"id":"5b1949ab-7e21-4323-8b00-c5002cf32b6e","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":273,"box":{"x":117,"y":800,"width":729,"height":12}},{"id":"db1bce70-db6a-4194-b5c9-fbd6fa5d96fc","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":273,"box":{"x":117,"y":823,"width":660,"height":13}},{"id":"b9bf0b3c-b789-4161-ad03-e02951ba727c","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very","page_number":273,"box":{"x":117,"y":847,"width":741,"height":12}},{"id":"6c65ef45-34f8-4694-bd8a-e0faca60571d","block_type":"box","text":"high credit risk.","page_number":273,"box":{"x":176,"y":862,"width":116,"height":12}},{"id":"5eee09ad-bf62-439c-9272-07ad7b0eeb88","block_type":"box","text":"A-2","page_number":273,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"b2675393-3c96-49e5-9282-a2b8833d4bea","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":273,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1691f530-8ddc-4b29-9661-b5bbac237a1c","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":274,"box":{"x":117,"y":87,"width":748,"height":12}},{"id":"40a73af7-a729-42a5-a46d-6261f4edfd45","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":274,"box":{"x":176,"y":102,"width":339,"height":13}},{"id":"69445a2e-2e13-4264-80e0-f704bd79853d","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for","page_number":274,"box":{"x":117,"y":126,"width":726,"height":12}},{"id":"cd5e9b8e-43d0-4099-89cf-b2e401910c61","block_type":"box","text":"recovery of principal or interest.","page_number":274,"box":{"x":176,"y":141,"width":238,"height":12}},{"id":"cd673ad9-f697-462b-9c38-47952bac10cd","block_type":"box","text":"Note","page_number":274,"box":{"x":117,"y":172,"width":34,"height":10}},{"id":"dc1c3c2b-db47-4149-9a19-3dcf282eeaaf","block_type":"box","text":": Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa","page_number":274,"box":{"x":153,"y":172,"width":709,"height":12}},{"id":"18cb3f4f-347a-4555-a257-d6827c48edde","block_type":"box","text":"through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating","page_number":274,"box":{"x":116,"y":188,"width":745,"height":12}},{"id":"00df56e0-9d53-4f8b-8053-9ab5a69162a0","block_type":"box","text":"category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the","page_number":274,"box":{"x":116,"y":203,"width":741,"height":12}},{"id":"450dc764-a0ef-4c95-b3d7-43976e44b980","block_type":"box","text":"lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of","page_number":274,"box":{"x":117,"y":219,"width":751,"height":12}},{"id":"48fa6fea-1487-496c-bd57-0271647a5f1e","block_type":"box","text":"hybrid securities issued by banks, insurers, finance companies, and securities firms.","page_number":274,"box":{"x":117,"y":234,"width":628,"height":12}},{"id":"8d3f4fce-6534-4d45-a5b2-44830da4c1f6","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal","page_number":274,"box":{"x":117,"y":265,"width":737,"height":12}},{"id":"1dd2d440-5b21-469a-9265-e3dec40d8f01","block_type":"box","text":"payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may","page_number":274,"box":{"x":117,"y":281,"width":765,"height":12}},{"id":"905a6eaa-1bec-4b5c-9f52-cb6f3e4eabc2","block_type":"box","text":"also be subject to contractually allowable write-downs of principal that could result in impairment.","page_number":274,"box":{"x":116,"y":296,"width":724,"height":12}},{"id":"9cd3290a-7648-4e02-b488-e0e9b1a1825c","block_type":"box","text":"Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an","page_number":274,"box":{"x":116,"y":312,"width":744,"height":12}},{"id":"cf33da8d-6cc3-40b9-992e-d754a28e39d1","block_type":"box","text":"expression of the relative credit risk associated with that security.","page_number":274,"box":{"x":116,"y":327,"width":488,"height":12}},{"id":"47f5c00d-cc38-42b6-bbf9-7144926206e0","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":274,"box":{"x":117,"y":358,"width":448,"height":12}},{"id":"b2ec8251-e828-4eab-ba41-c5b3f7920eec","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":274,"box":{"x":117,"y":389,"width":616,"height":12}},{"id":"b76bf0b5-9e8e-4862-8810-0af923c50d65","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":274,"box":{"x":117,"y":413,"width":602,"height":12}},{"id":"960562b0-a95b-4624-89ff-d66d316be56b","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":274,"box":{"x":117,"y":436,"width":646,"height":12}},{"id":"eb4ff5bf-5402-4da5-9ba5-64707397641c","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":274,"box":{"x":117,"y":459,"width":737,"height":12}},{"id":"8aa744ef-d7f8-4abf-b18d-98d38e420d59","block_type":"box","text":"categories.","page_number":274,"box":{"x":175,"y":475,"width":87,"height":12}},{"id":"70039260-7464-4b70-beba-6862901b7900","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":274,"box":{"x":117,"y":506,"width":707,"height":12}},{"id":"ff880a84-4ed9-4b17-8d3e-eb2fd4ae13db","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":274,"box":{"x":117,"y":537,"width":439,"height":12}},{"id":"f93f1a16-60fc-4a53-ad44-3fa4c74d11a8","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S.","page_number":274,"box":{"x":117,"y":568,"width":681,"height":12}},{"id":"dd940379-97a7-48c0-9fc9-db93c8cb6a88","block_type":"box","text":"municipalities and nonprofits. These commercial paper programs may be backed by external letters of","page_number":274,"box":{"x":117,"y":583,"width":761,"height":12}},{"id":"fb75e1eb-07c1-47be-bb8b-e14bb5bb00f5","block_type":"box","text":"credit or liquidity facilities, or by an issuer’s self-liquidity.","page_number":274,"box":{"x":116,"y":599,"width":420,"height":12}},{"id":"5d7de644-430c-4514-9615-425f128de98f","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":274,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"d063e954-3d1d-4e55-ab71-92df120ad8e1","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales","page_number":274,"box":{"x":117,"y":645,"width":708,"height":12}},{"id":"143d9ad4-bdc0-44d7-82a5-f70388956dbf","block_type":"box","text":"discussed below.","page_number":274,"box":{"x":116,"y":661,"width":126,"height":9}},{"id":"ef89772a-775f-4d03-872a-acb731340491","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain","page_number":274,"box":{"x":117,"y":692,"width":738,"height":12}},{"id":"0ece7f7f-02c3-4276-af84-ee2f871adcf6","block_type":"box","text":"other short-term obligations, which typically mature in three years or less. Under certain circumstances,","page_number":274,"box":{"x":116,"y":707,"width":766,"height":12}},{"id":"8fa52a79-1ccc-48fe-9db5-7ff25f871c15","block_type":"box","text":"Moody’s uses the MIG scale for bond anticipation notes with maturities of up to five years.","page_number":274,"box":{"x":117,"y":723,"width":665,"height":12}},{"id":"488655e2-b999-4236-9b39-9a7d3217dcb5","block_type":"box","text":"MIG Scale","page_number":274,"box":{"x":117,"y":754,"width":77,"height":9}},{"id":"2506b479-dda9-4c98-9b82-6424c0a0b577","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":274,"box":{"x":117,"y":785,"width":760,"height":12}},{"id":"d9b91776-c2f9-4093-bdee-d79fb05039d1","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market","page_number":274,"box":{"x":175,"y":800,"width":703,"height":12}},{"id":"5e9ceaf4-8e14-436f-a2a1-04d11962c15c","block_type":"box","text":"for refinancing.","page_number":274,"box":{"x":175,"y":816,"width":110,"height":12}},{"id":"39a7abad-8b3f-45f4-b33b-840a0ba6e4a0","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":274,"box":{"x":117,"y":839,"width":771,"height":12}},{"id":"65e07681-760a-4891-a96b-bbcc106e16f4","block_type":"box","text":"large as in the preceding group.","page_number":274,"box":{"x":176,"y":855,"width":240,"height":12}},{"id":"ca19b601-60c7-492e-99f8-efce277a0a99","block_type":"box","text":"A-3","page_number":274,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"e5047a17-8510-4d35-be0d-ba6e26a311b5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":274,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e608f88a-ec91-4712-970f-b6574af3d42a","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":275,"box":{"x":117,"y":87,"width":753,"height":12}},{"id":"c334603d-a0ff-42ee-944f-983eae9cb753","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":275,"box":{"x":176,"y":102,"width":582,"height":13}},{"id":"45c3bb52-98d2-4886-a228-9a1014cb2307","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category","page_number":275,"box":{"x":116,"y":126,"width":741,"height":12}},{"id":"445e9b5c-e8d3-4222-9286-76e71c23f766","block_type":"box","text":"may lack sufficient margins of protection.","page_number":275,"box":{"x":176,"y":141,"width":307,"height":12}},{"id":"a7521913-5625-4ebc-a4b1-40bef78f75db","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":275,"box":{"x":117,"y":172,"width":415,"height":12}},{"id":"a6e2fe7f-7b19-4ce6-800a-3d1757cc1315","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The","page_number":275,"box":{"x":117,"y":203,"width":749,"height":12}},{"id":"c8cee7ef-0b88-4004-a47a-f41db3924978","block_type":"box","text":"components are a long-term rating and a short-term demand obligation rating. The long-term rating","page_number":275,"box":{"x":116,"y":219,"width":740,"height":12}},{"id":"38d0020b-5cee-4b62-a7f2-504bc41d9f57","block_type":"box","text":"addresses the issuer’s ability to meet scheduled principal and interest payments. The short-term","page_number":275,"box":{"x":116,"y":234,"width":719,"height":12}},{"id":"082ad1a0-8b98-4080-9dc6-920ae2d9ab1f","block_type":"box","text":"demand obligation rating addresses the ability of the issuer or the liquidity provider to make payments","page_number":275,"box":{"x":116,"y":250,"width":759,"height":12}},{"id":"824d18b4-8860-4f51-99d7-6e93a21c1d03","block_type":"box","text":"associated with the purchase-price-upon-demand feature (“demand feature”) of the VRDO. The short","page_number":275,"box":{"x":116,"y":265,"width":756,"height":12}},{"id":"180be6fd-1398-40af-b819-d906acffd343","block_type":"box","text":"term demand obligation rating uses the VMIG scale. VMIG ratings with liquidity support use as an input","page_number":275,"box":{"x":116,"y":281,"width":770,"height":12}},{"id":"c06a2648-2f0a-430b-9ceb-72bbc82adefd","block_type":"box","text":"the short-term Counterparty Risk Assessment of the support provider, or the long-term rating of the","page_number":275,"box":{"x":116,"y":296,"width":740,"height":12}},{"id":"0fc04a85-cb16-4403-818f-1ef3db4b90db","block_type":"box","text":"underlying obligor in the absence of third party liquidity support. Transitions of VMIG ratings of demand","page_number":275,"box":{"x":117,"y":312,"width":768,"height":12}},{"id":"7c704a7a-13d2-4dbb-b8bf-4fbb4418105d","block_type":"box","text":"obligations with conditional liquidity support differ from transitions on the Prime scale to reflect the risk","page_number":275,"box":{"x":116,"y":327,"width":760,"height":12}},{"id":"c607372e-a2cb-49c4-abac-911e65f72ed1","block_type":"box","text":"that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":275,"box":{"x":116,"y":343,"width":729,"height":12}},{"id":"fd746c57-2db1-4ad8-a42e-394f47345ca0","block_type":"box","text":"grade.","page_number":275,"box":{"x":116,"y":358,"width":52,"height":12}},{"id":"6816d4ce-c9bd-4511-b0cd-a5bf26ae992b","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand","page_number":275,"box":{"x":117,"y":389,"width":771,"height":12}},{"id":"c15d260e-bfb5-470e-a565-db6d666bba44","block_type":"box","text":"feature is less than every three years. If the frequency of the demand feature is less than three years","page_number":275,"box":{"x":116,"y":405,"width":753,"height":12}},{"id":"0ad98406-94a4-49b6-a1e3-35d68c93f1c7","block_type":"box","text":"but the purchase price is payable only with remarketing proceeds, the short-term demand obligation","page_number":275,"box":{"x":117,"y":420,"width":745,"height":12}},{"id":"2ff2645b-64af-490c-b2fd-5598abe12db8","block_type":"box","text":"rating is “NR”.","page_number":275,"box":{"x":117,"y":436,"width":107,"height":12}},{"id":"347a6ba1-5b8d-46fa-8148-30288e2c9b39","block_type":"box","text":"VMIG Scale","page_number":275,"box":{"x":116,"y":467,"width":94,"height":9}},{"id":"28c502c9-18d1-4cdc-8603-a581c02c6419","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the","page_number":275,"box":{"x":116,"y":498,"width":713,"height":12}},{"id":"1056de3d-b63e-4ccf-85ee-8b3d3595447c","block_type":"box","text":"superior short-term credit strength of the liquidity provider and structural and legal protections","page_number":275,"box":{"x":184,"y":513,"width":697,"height":12}},{"id":"1cf3dc96-e908-4975-bda8-910d10346009","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":275,"box":{"x":183,"y":529,"width":481,"height":12}},{"id":"44e641b5-75d6-43b0-a097-3f8ae788c986","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short","page_number":275,"box":{"x":116,"y":552,"width":766,"height":12}},{"id":"97ca2354-a6e4-400e-8af6-d83198d3ddf3","block_type":"box","text":"term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":275,"box":{"x":183,"y":568,"width":679,"height":12}},{"id":"dc5138a7-e910-4ac6-8881-8e90c1715e2e","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":275,"box":{"x":183,"y":583,"width":392,"height":12}},{"id":"ecfcab06-dfe4-4f57-86da-33957466a62a","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":275,"box":{"x":116,"y":606,"width":738,"height":12}},{"id":"0d3f4237-e8b3-4f42-9514-9fd84a89b1b0","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal","page_number":275,"box":{"x":184,"y":622,"width":635,"height":12}},{"id":"6e1401bd-ac38-4d30-8181-5b3727381d7c","block_type":"box","text":"protections that ensure the timely payment of purchase price upon demand.","page_number":275,"box":{"x":184,"y":637,"width":567,"height":12}},{"id":"38fe198b-3bef-4d4e-b124-ba11cdecd2a1","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this","page_number":275,"box":{"x":116,"y":661,"width":720,"height":12}},{"id":"d5306487-80c7-4655-819e-40e2f6e562f6","block_type":"box","text":"category may be supported by a liquidity provider that does not have a sufficiently strong","page_number":275,"box":{"x":184,"y":676,"width":657,"height":12}},{"id":"f65fd674-361c-4511-81be-6f5236c4ff4b","block_type":"box","text":"short-term rating or may lack the structural or legal protections necessary to ensure the timely","page_number":275,"box":{"x":184,"y":692,"width":695,"height":12}},{"id":"72874c97-3860-4fce-ab4b-247a2cf7c6e4","block_type":"box","text":"payment of purchase price upon demand.","page_number":275,"box":{"x":184,"y":707,"width":308,"height":12}},{"id":"102ad4eb-65f0-42ce-834b-6c1cf33952f5","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":275,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"a599e1a8-5f6f-4afe-a949-60d713d643a2","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with","page_number":275,"box":{"x":116,"y":769,"width":737,"height":12}},{"id":"507b0eef-4679-4be5-a037-051270866188","block_type":"box","text":"respect to a specific financial obligation, a specific class of financial obligations, or a specific financial","page_number":275,"box":{"x":117,"y":785,"width":748,"height":12}},{"id":"fd940a91-a7ec-4c91-9dfe-c7b55e2520d8","block_type":"box","text":"program (including ratings on medium-term note programs and commercial paper programs). It takes","page_number":275,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"984fdc07-1253-4210-ab07-13eb57599763","block_type":"box","text":"into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement","page_number":275,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"d9ea0fbf-d388-48f6-a9da-afbc833f8b24","block_type":"box","text":"on the obligation and takes into account the currency in which the obligation is denominated. The","page_number":275,"box":{"x":116,"y":831,"width":726,"height":12}},{"id":"46523307-73db-40e9-85e7-ecaac5268a21","block_type":"box","text":"opinion reflects S&P’s view of the obligor’s capacity and willingness to meet its financial commitments","page_number":275,"box":{"x":116,"y":847,"width":759,"height":12}},{"id":"32b14074-4086-4675-af84-7da718e441fa","block_type":"box","text":"as they come due, and this opinion may assess terms, such as collateral security and subordination,","page_number":275,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"c1beb701-76aa-4868-a737-3e4a5783f9b5","block_type":"box","text":"which could affect ultimate payment in the event of default.","page_number":275,"box":{"x":116,"y":878,"width":441,"height":12}},{"id":"e1731d49-9c54-487e-b36f-98e67a1a11db","block_type":"box","text":"A-4","page_number":275,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"cebd14cc-f1ad-480f-8004-045c91124b86","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":275,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ff916b20-07b3-4ee9-b177-db9d1287171e","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally","page_number":276,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"3ddbe187-e9f4-41c9-b3a5-8674c3e9215a","block_type":"box","text":"assigned to those obligations considered short-term in the relevant market, typically with an original","page_number":276,"box":{"x":116,"y":103,"width":743,"height":12}},{"id":"dbcdaf2f-3b7f-4563-a821-66ae391c540d","block_type":"box","text":"maturity of no more than 365 days. Short-term issue credit ratings are also used to indicate the","page_number":276,"box":{"x":117,"y":118,"width":708,"height":12}},{"id":"32a9fa11-4f3d-475a-8a44-f2ab0d62e88d","block_type":"box","text":"creditworthiness of an obligor with respect to put features on long-term obligations. S&P would typically","page_number":276,"box":{"x":116,"y":134,"width":771,"height":12}},{"id":"ce68d4c5-69cd-4c04-98ea-45f3425f565a","block_type":"box","text":"assign a long-term issue credit rating to an obligation with an original maturity of greater than 365 days.","page_number":276,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"07e09001-2a35-4a1e-b8d8-9c3dea4ab99e","block_type":"box","text":"However, the ratings S&P assigns to certain instruments may diverge from these guidelines based on","page_number":276,"box":{"x":117,"y":165,"width":758,"height":12}},{"id":"56873983-1438-4b6e-8d50-b288286016b2","block_type":"box","text":"market practices. Medium-term notes are assigned long-term ratings.","page_number":276,"box":{"x":117,"y":180,"width":518,"height":12}},{"id":"5ca741fc-dff8-40dd-8c8a-82cbb3b6aa88","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":276,"box":{"x":117,"y":211,"width":750,"height":12}},{"id":"0ee9355f-0803-4342-93d2-dc43c4aaa766","block_type":"box","text":"• The likelihood of payment—the capacity and willingness of the obligor to meet its financial","page_number":276,"box":{"x":150,"y":242,"width":706,"height":12}},{"id":"407314fe-2a3a-4226-a718-068f1162a15a","block_type":"box","text":"commitments on an obligation in accordance with the terms of the obligation;","page_number":276,"box":{"x":184,"y":258,"width":575,"height":12}},{"id":"5889c4dc-664a-428a-8a11-1cd8d76f1fd8","block_type":"box","text":"• The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":276,"box":{"x":150,"y":281,"width":692,"height":12}},{"id":"595b7263-f4b1-48f4-990d-848e02907212","block_type":"box","text":"• The protection afforded by, and relative position of, the financial obligation in the event of a","page_number":276,"box":{"x":150,"y":304,"width":712,"height":12}},{"id":"a89e4317-bb7c-436d-99f9-2f5315d7f0d2","block_type":"box","text":"bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws","page_number":276,"box":{"x":184,"y":320,"width":704,"height":12}},{"id":"5a1286fd-5fbf-41d5-831f-b9ebdc196901","block_type":"box","text":"affecting creditors’ rights.","page_number":276,"box":{"x":184,"y":335,"width":191,"height":12}},{"id":"5739b173-3fcd-48f3-9e97-9d437fd75b8f","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority","page_number":276,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"5921d7aa-5a97-4987-a279-473fcf7e503d","block_type":"box","text":"or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior","page_number":276,"box":{"x":116,"y":382,"width":728,"height":12}},{"id":"c94effa5-3828-46cd-bada-266e7a63fa5a","block_type":"box","text":"obligations, to reflect lower priority in bankruptcy, as noted above. (Such differentiation may apply","page_number":276,"box":{"x":116,"y":397,"width":729,"height":12}},{"id":"2ebf5ac3-9845-4d95-bf3f-b87953db239d","block_type":"box","text":"when an entity has both senior and subordinated obligations, secured and unsecured obligations, or","page_number":276,"box":{"x":116,"y":413,"width":747,"height":12}},{"id":"789cb33e-7e0a-4e1a-ab6d-1e34fe45cd4b","block_type":"box","text":"operating company and holding company obligations.)","page_number":276,"box":{"x":116,"y":428,"width":407,"height":12}},{"id":"f03137f2-225a-49ea-a760-1bb94d678915","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":276,"box":{"x":117,"y":459,"width":265,"height":12}},{"id":"2da27753-746e-466b-9598-ffa20fe863e5","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to","page_number":276,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"1680ac9d-1dcc-4b4f-9382-97d55bd3342e","block_type":"box","text":"meet its financial commitments on the obligation is extremely strong.","page_number":276,"box":{"x":192,"y":506,"width":513,"height":12}},{"id":"c2a61e82-d915-461c-8453-35e3fe7190f5","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree.","page_number":276,"box":{"x":116,"y":529,"width":734,"height":12}},{"id":"f9cf5ca1-cef9-4c04-8509-db5075edce2c","block_type":"box","text":"The obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":276,"box":{"x":191,"y":544,"width":659,"height":12}},{"id":"13fcbe15-feed-4dc0-8050-1bc4cf2082ab","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":276,"box":{"x":116,"y":568,"width":744,"height":12}},{"id":"993171c6-4de7-4d9a-a27d-d1c3c7ca7e5c","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories.","page_number":276,"box":{"x":192,"y":583,"width":624,"height":12}},{"id":"874382ee-6052-4008-a8fa-b6f23d31ef46","block_type":"box","text":"However, the obligor’s capacity to meet its financial commitments on the obligation is still","page_number":276,"box":{"x":192,"y":599,"width":664,"height":12}},{"id":"5582731d-8238-48ba-98e8-f45cc9223e88","block_type":"box","text":"strong.","page_number":276,"box":{"x":191,"y":614,"width":56,"height":12}},{"id":"77fb9a16-8607-48d6-b7bf-d8b8a3706841","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse","page_number":276,"box":{"x":117,"y":637,"width":715,"height":12}},{"id":"eced9247-31ba-45ce-b4d9-0852e2a39495","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken the obligor’s","page_number":276,"box":{"x":192,"y":653,"width":652,"height":12}},{"id":"97fc8398-ba4a-4cd4-9d91-f75bc2d3f5df","block_type":"box","text":"capacity to meet its financial commitments on the obligation.","page_number":276,"box":{"x":192,"y":668,"width":446,"height":12}},{"id":"1edb3090-62a5-4901-886e-5792f0148738","block_type":"box","text":"BB, B,","page_number":276,"box":{"x":117,"y":692,"width":45,"height":11}},{"id":"35f36dc2-fe94-4e85-9613-3edfece257f1","block_type":"box","text":"CCC,","page_number":276,"box":{"x":117,"y":707,"width":38,"height":11}},{"id":"d3564677-57c2-41cc-a9f2-bbc2353bb081","block_type":"box","text":"CC,","page_number":276,"box":{"x":117,"y":723,"width":26,"height":11}},{"id":"ee22162b-1c3c-423c-9b61-c6a1956b8462","block_type":"box","text":"and C","page_number":276,"box":{"x":116,"y":738,"width":44,"height":10}},{"id":"27c98763-13c9-4388-b8f9-ba89157bb7e5","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant","page_number":276,"box":{"x":192,"y":692,"width":602,"height":12}},{"id":"70e9e7ba-6801-4a67-8d94-98b9835f82c2","block_type":"box","text":"speculative characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the","page_number":276,"box":{"x":191,"y":707,"width":625,"height":12}},{"id":"68998275-35f6-4e7b-9792-7f22a68561f5","block_type":"box","text":"highest. While such obligations will likely have some quality and protective characteristics,","page_number":276,"box":{"x":192,"y":723,"width":666,"height":12}},{"id":"02518b18-0260-4ccc-bc7d-6523ba7b9420","block_type":"box","text":"these may be outweighed by large uncertainties or major exposure to adverse conditions.","page_number":276,"box":{"x":191,"y":738,"width":664,"height":12}},{"id":"cf06c91b-8563-4f10-9fc7-975140db1018","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues.","page_number":276,"box":{"x":117,"y":761,"width":723,"height":13}},{"id":"423231af-57f9-46fb-a767-85873a546a7a","block_type":"box","text":"However, it faces major ongoing uncertainties or exposure to adverse business, financial,","page_number":276,"box":{"x":192,"y":777,"width":662,"height":12}},{"id":"6ec26c70-db0b-4461-8975-c4fe2db0e808","block_type":"box","text":"or economic conditions that could lead to the obligor’s inadequate capacity to meet its","page_number":276,"box":{"x":192,"y":793,"width":635,"height":12}},{"id":"e35de03b-4cb4-463d-a156-01d2e7eb3b7d","block_type":"box","text":"financial commitments on the obligation.","page_number":276,"box":{"x":191,"y":808,"width":298,"height":12}},{"id":"6a81c1c7-9cc6-4bcc-a14e-b8cea96ff3b7","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but","page_number":276,"box":{"x":117,"y":831,"width":733,"height":12}},{"id":"f205fd6f-8f2f-4124-8362-12d196049e05","block_type":"box","text":"the obligor currently has the capacity to meet its financial commitments on the obligation.","page_number":276,"box":{"x":191,"y":847,"width":665,"height":12}},{"id":"f5eb5209-271f-4dd4-a32c-1c185ab17ae9","block_type":"box","text":"Adverse business, financial, or economic conditions will likely impair the obligor’s capacity","page_number":276,"box":{"x":191,"y":862,"width":672,"height":12}},{"id":"11380d6d-db29-4079-a989-d601eb9d45e0","block_type":"box","text":"or willingness to meet its financial commitments on the obligation.","page_number":276,"box":{"x":192,"y":878,"width":491,"height":12}},{"id":"6e8411ea-627c-4a66-8a67-51b87709ccde","block_type":"box","text":"A-5","page_number":276,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"9e4f7eac-194a-4f58-bcd0-cfee8b9a2ff8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":276,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a785c75d-75ee-4461-b3f4-ce7af71c5f81","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon","page_number":277,"box":{"x":117,"y":87,"width":728,"height":12}},{"id":"d3a95c8b-6f30-4246-b445-353b611a9b29","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":277,"box":{"x":191,"y":102,"width":667,"height":13}},{"id":"26e9de68-fbcf-4e83-b6d6-ca5c6091ea80","block_type":"box","text":"commitments on the obligation. In the event of adverse business, financial, or economic","page_number":277,"box":{"x":192,"y":118,"width":656,"height":12}},{"id":"f9357eac-dc83-4b5a-8f5e-c3d908b985d5","block_type":"box","text":"conditions, the obligor is not likely to have the capacity to meet its financial commitments","page_number":277,"box":{"x":192,"y":134,"width":662,"height":12}},{"id":"97d6a27d-30ea-467f-81d9-933f26b1dd68","block_type":"box","text":"on the obligation.","page_number":277,"box":{"x":192,"y":149,"width":132,"height":12}},{"id":"99cfcb6f-7b99-473e-9ce0-0f0ebb959f1b","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is","page_number":277,"box":{"x":117,"y":172,"width":727,"height":12}},{"id":"eebc2705-8044-495e-af4c-4f568c127555","block_type":"box","text":"used when a default has not yet occurred but S&P expects default to be a virtual certainty,","page_number":277,"box":{"x":192,"y":188,"width":675,"height":12}},{"id":"f9d000ce-27ef-49c9-abbe-da653637199d","block_type":"box","text":"regardless of the anticipated time to default.","page_number":277,"box":{"x":192,"y":203,"width":330,"height":12}},{"id":"5a0b3706-3dbd-454a-91ea-36478f5aa5e3","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is","page_number":277,"box":{"x":117,"y":227,"width":735,"height":12}},{"id":"8defb576-3a6a-4d02-b2e6-6a5a1d0fc265","block_type":"box","text":"expected to have lower relative seniority or lower ultimate recovery compared with","page_number":277,"box":{"x":192,"y":242,"width":615,"height":12}},{"id":"147d29a8-eb4b-43c8-8ba7-47ab8176d52e","block_type":"box","text":"obligations that are rated higher.","page_number":277,"box":{"x":192,"y":258,"width":245,"height":12}},{"id":"e51ea7d7-b22b-4b05-a70f-57aeb166f71b","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":277,"box":{"x":117,"y":281,"width":717,"height":12}},{"id":"8251d0cc-6273-4c4f-b112-74f1daf76f56","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not","page_number":277,"box":{"x":192,"y":296,"width":678,"height":12}},{"id":"924339ae-d567-4c4f-8503-51bf445fbe0d","block_type":"box","text":"made on the date due, unless S&P believes that such payments will be made within five","page_number":277,"box":{"x":192,"y":312,"width":657,"height":12}},{"id":"28025797-dae5-434e-8e18-7cac92cc818b","block_type":"box","text":"business days in the absence of a stated grace period or within the earlier of the stated","page_number":277,"box":{"x":192,"y":327,"width":650,"height":12}},{"id":"f5e573ac-f7d8-451c-ad0f-85cf0cdcd720","block_type":"box","text":"grace period or 30 calendar days. The ‘D’ rating also will be used upon the filing of a","page_number":277,"box":{"x":191,"y":343,"width":630,"height":12}},{"id":"e0c77172-9170-46cf-8ef4-a539d8ace225","block_type":"box","text":"bankruptcy petition or the taking of similar action and where default on an obligation is a","page_number":277,"box":{"x":192,"y":358,"width":657,"height":12}},{"id":"8f044069-3bd5-41e4-badd-dd5ede260722","block_type":"box","text":"virtual certainty, for example due to automatic stay provisions. A rating on an obligation is","page_number":277,"box":{"x":191,"y":374,"width":668,"height":12}},{"id":"4ce46f58-1dcd-48c2-9057-d042119084c4","block_type":"box","text":"lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":277,"box":{"x":192,"y":389,"width":461,"height":12}},{"id":"4be2bc7a-0c58-4a2b-b9f0-0d05ffcece4a","block_type":"box","text":"* Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing","page_number":277,"box":{"x":143,"y":418,"width":705,"height":9}},{"id":"bbcdc48f-da35-41e2-be25-2dd825058518","block_type":"box","text":"within the rating categories.","page_number":277,"box":{"x":170,"y":431,"width":162,"height":9}},{"id":"875c8f4c-7580-424e-b5f7-4bd0a6040008","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":277,"box":{"x":116,"y":458,"width":263,"height":12}},{"id":"946976c3-e420-4927-a8e7-640058652277","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","page_number":277,"box":{"x":116,"y":487,"width":715,"height":12}},{"id":"2e4d2174-14b4-4dfc-b1ea-bb0b2158bca9","block_type":"box","text":"capacity to meet its financial commitments on the obligation is strong. Within this category,","page_number":277,"box":{"x":175,"y":502,"width":677,"height":12}},{"id":"04c0f8a2-14e8-45a3-8212-6267587a0d84","block_type":"box","text":"certain obligations are designated with a plus sign (+). This indicates that the obligor’s capacity","page_number":277,"box":{"x":175,"y":518,"width":708,"height":12}},{"id":"6a541991-e2d4-4147-a08d-e6f84e5cd181","block_type":"box","text":"to meet its financial commitments on these obligations is extremely strong.","page_number":277,"box":{"x":175,"y":533,"width":558,"height":12}},{"id":"c2a375d4-c151-44e4-a07c-0afc8d030b5d","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of","page_number":277,"box":{"x":116,"y":556,"width":729,"height":12}},{"id":"1bd53d5e-b814-4098-b022-542e32485d59","block_type":"box","text":"changes in circumstances and economic conditions than obligations in higher rating","page_number":277,"box":{"x":175,"y":571,"width":626,"height":12}},{"id":"b551b390-05fb-4177-9eb0-bdfc2f80a0a6","block_type":"box","text":"categories. However, the obligor’s capacity to meet its financial commitments on the obligation","page_number":277,"box":{"x":175,"y":587,"width":706,"height":12}},{"id":"19fa6062-c90b-477c-a219-0261e11184b1","block_type":"box","text":"is satisfactory.","page_number":277,"box":{"x":176,"y":602,"width":110,"height":12}},{"id":"1b68b615-17a0-45cd-9d4f-48589649412e","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":277,"box":{"x":116,"y":624,"width":764,"height":13}},{"id":"5a4e5fd6-5c43-4ce5-830f-e7600f5a121f","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s","page_number":277,"box":{"x":175,"y":640,"width":648,"height":12}},{"id":"66158b59-af9b-4a87-ad42-bda9cb2af997","block_type":"box","text":"capacity to meet its financial commitments on the obligation.","page_number":277,"box":{"x":175,"y":655,"width":453,"height":13}},{"id":"4550c4ed-36d3-4c0d-b5be-6af72db0e32a","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":277,"box":{"x":117,"y":678,"width":719,"height":12}},{"id":"22e899ef-6ea4-42f4-84d8-5d55b8ea9cca","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments;","page_number":277,"box":{"x":175,"y":693,"width":653,"height":12}},{"id":"fac96e40-15a8-456d-94a9-05c1ce75ae42","block_type":"box","text":"however, it faces major ongoing uncertainties that could lead to the obligor’s inadequate","page_number":277,"box":{"x":176,"y":709,"width":652,"height":12}},{"id":"970cbf36-7593-4d7a-9640-5744e56a8b49","block_type":"box","text":"capacity to meet its financial commitments.","page_number":277,"box":{"x":175,"y":724,"width":318,"height":12}},{"id":"e68a97ce-098d-4c39-b2de-c65d8e061c54","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":277,"box":{"x":117,"y":747,"width":754,"height":12}},{"id":"c533a222-4ede-4d0e-9f58-9c433238e492","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":277,"box":{"x":175,"y":762,"width":661,"height":12}},{"id":"27770839-4807-446b-81f4-f96ac025159f","block_type":"box","text":"commitments on the obligation.","page_number":277,"box":{"x":175,"y":778,"width":231,"height":12}},{"id":"39c9dfa1-2f3f-44fe-ae69-ef265ec81e31","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For","page_number":277,"box":{"x":117,"y":800,"width":684,"height":12}},{"id":"673280b4-3973-4d6d-84a5-af19862b7af9","block_type":"box","text":"non-hybrid capital instruments, the ‘D’ rating category is used when payments on an obligation","page_number":277,"box":{"x":176,"y":815,"width":699,"height":12}},{"id":"72d3a0f2-b130-4b6d-a6b2-830c8313134e","block_type":"box","text":"are not made on the date due, unless S&P believes that such payments will be made within","page_number":277,"box":{"x":175,"y":831,"width":684,"height":12}},{"id":"6543e602-26c3-439a-97d6-2dfe5cf804cb","block_type":"box","text":"any stated grace period. However, any stated grace period longer than five business days will","page_number":277,"box":{"x":175,"y":846,"width":700,"height":12}},{"id":"f2e33304-2a71-464a-ada9-3a1297ebbf90","block_type":"box","text":"be treated as five business days. The ‘D’ rating also will be used upon the filing of a bankruptcy","page_number":277,"box":{"x":176,"y":862,"width":711,"height":12}},{"id":"7c5a31ea-cc25-40b4-8480-0bc9a26de5f3","block_type":"box","text":"petition or the taking of a similar action and where default on an obligation is a virtual certainty,","page_number":277,"box":{"x":176,"y":877,"width":706,"height":12}},{"id":"15046b30-da14-4d14-9e54-6e84c23f0159","block_type":"box","text":"A-6","page_number":277,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"96e97ed6-4cae-4c3b-9b80-1deab21b43d2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":277,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"192122d0-87f8-44be-b869-749c5173b083","block_type":"box","text":"for example due to automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is","page_number":278,"box":{"x":175,"y":87,"width":695,"height":12}},{"id":"f9c11406-9d46-4523-93a0-e01df21f999d","block_type":"box","text":"subject to a distressed debt restructuring.","page_number":278,"box":{"x":175,"y":103,"width":312,"height":12}},{"id":"c17d4c62-7511-4e54-a791-7e53f2ef23a2","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":278,"box":{"x":117,"y":134,"width":456,"height":12}},{"id":"918ce8d2-fc40-46d0-b46d-ed6afa0dcb08","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access","page_number":278,"box":{"x":116,"y":165,"width":766,"height":12}},{"id":"ab1f61d5-2e9a-4308-9250-59f7f0a537dd","block_type":"box","text":"risks unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with","page_number":278,"box":{"x":117,"y":180,"width":748,"height":12}},{"id":"206dd757-1a54-40cb-905b-b5270bb581d9","block_type":"box","text":"an original maturity of more than three years will most likely receive a long-term debt rating. In","page_number":278,"box":{"x":116,"y":196,"width":703,"height":12}},{"id":"2917db4b-e540-40c5-8a78-b4674900daa2","block_type":"box","text":"determining which type of rating, if any, to assign, S&P’s analysis will review the following","page_number":278,"box":{"x":116,"y":211,"width":668,"height":12}},{"id":"4f87e9ef-2081-41f0-bae9-e854e9785141","block_type":"box","text":"considerations:","page_number":278,"box":{"x":116,"y":227,"width":118,"height":9}},{"id":"1132a7fa-9e3d-479c-af71-6d7fe4e13ff6","block_type":"box","text":"• Amortization schedule—the larger the final maturity relative to other maturities, the more likely","page_number":278,"box":{"x":150,"y":258,"width":736,"height":12}},{"id":"81360ee2-a921-4e67-bcd2-11c5a8cd9d46","block_type":"box","text":"it will be treated as a note; and","page_number":278,"box":{"x":184,"y":273,"width":232,"height":11}},{"id":"7b57baf9-7222-42f2-8efb-7404a743eb43","block_type":"box","text":"• Source of payment—the more dependent the issue is on the market for its refinancing, the","page_number":278,"box":{"x":150,"y":296,"width":709,"height":12}},{"id":"1182dc8a-8ba4-4606-aa0a-d1c8d9425606","block_type":"box","text":"more likely it will be treated as a note.","page_number":278,"box":{"x":184,"y":312,"width":284,"height":12}},{"id":"beaf8d1d-4c54-42ec-a438-0b7d9300cef8","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":278,"box":{"x":116,"y":343,"width":470,"height":12}},{"id":"0861dc88-b10c-4871-b681-d14618f08ec2","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":278,"box":{"x":116,"y":374,"width":740,"height":12}},{"id":"b0747738-bc14-4bef-98f9-c2a4dc7646d5","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":278,"box":{"x":175,"y":389,"width":445,"height":12}},{"id":"0526a8e8-1e01-40cd-bee4-b719ced1360f","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial","page_number":278,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"80710d32-234d-4e8c-9cb3-5099002f25a3","block_type":"box","text":"and economic changes over the term of the notes.","page_number":278,"box":{"x":175,"y":428,"width":379,"height":12}},{"id":"10fffb4a-5fa3-437b-8658-956d6a5d3bf5","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":278,"box":{"x":116,"y":451,"width":432,"height":12}},{"id":"04a706e9-5244-400e-a918-f914b7fbe857","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":278,"box":{"x":117,"y":475,"width":699,"height":12}},{"id":"fb218ace-a23d-4e8c-be8f-29651c0c1b68","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where","page_number":278,"box":{"x":176,"y":490,"width":670,"height":12}},{"id":"0a1a4a5f-dbc3-48d5-b9f1-60ae5d736a56","block_type":"box","text":"default on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":278,"box":{"x":175,"y":506,"width":674,"height":12}},{"id":"db741aaa-8891-474a-bf4b-9a12561afcfc","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":278,"box":{"x":117,"y":537,"width":498,"height":12}},{"id":"0410c47f-d30a-4463-b850-51e657997464","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings,","page_number":278,"box":{"x":117,"y":568,"width":756,"height":12}},{"id":"1c4ac854-54df-418f-86b0-fd63d46a64c9","block_type":"box","text":"but the agency also publishes ratings, scores and other relative opinions relating to financial or","page_number":278,"box":{"x":117,"y":583,"width":706,"height":12}},{"id":"01b86219-1ac5-4c16-9296-78b4943a9a2b","block_type":"box","text":"operational strength. For example, Fitch also provides specialized ratings of servicers of residential","page_number":278,"box":{"x":116,"y":599,"width":740,"height":12}},{"id":"b1a3de19-7ca5-422b-a454-70ff753d2d63","block_type":"box","text":"and commercial mortgages, asset managers and funds. In each case, users should refer to the","page_number":278,"box":{"x":116,"y":614,"width":711,"height":12}},{"id":"58e7cc65-f487-4f34-b740-93e9f4359bab","block_type":"box","text":"definitions of each individual scale for guidance on the dimensions of risk covered in each assessment.","page_number":278,"box":{"x":116,"y":630,"width":769,"height":12}},{"id":"1b868c40-50be-4ed7-8a8d-19cc28e26268","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet","page_number":278,"box":{"x":117,"y":661,"width":702,"height":12}},{"id":"0c0952b9-77c1-4903-8bb8-0c8995c79040","block_type":"box","text":"financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims","page_number":278,"box":{"x":116,"y":676,"width":756,"height":12}},{"id":"845b230d-ef5f-41f8-8957-842bdf6bd25c","block_type":"box","text":"or counterparty obligations. Credit ratings relating to securities and obligations of an issuer can include","page_number":278,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"0a6df229-4dc2-4cbd-8c3d-350e4b9fe8d1","block_type":"box","text":"a recovery expectation. Credit ratings are used by investors as indications of the likelihood of receiving","page_number":278,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"372cebd3-0da9-4b1e-a770-4d51e07c5c05","block_type":"box","text":"the money owed to them in accordance with the terms on which they invested. The agency’s credit","page_number":278,"box":{"x":116,"y":723,"width":733,"height":12}},{"id":"d8984754-d804-4627-8ab8-836c6687802e","block_type":"box","text":"ratings cover the global spectrum of corporate, sovereign financial, bank, insurance, and public finance","page_number":278,"box":{"x":117,"y":738,"width":763,"height":12}},{"id":"07807815-3f6d-437f-a2a1-fdd5b0988e24","block_type":"box","text":"entities (including supranational and sub-national entities) and the securities or other obligations they","page_number":278,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"4827923b-29ac-466c-98b2-4f86248f8291","block_type":"box","text":"issue, as well as structured finance securities backed by receivables or other financial assets.","page_number":278,"box":{"x":117,"y":769,"width":692,"height":12}},{"id":"140858c2-47e7-49ee-b71f-a0b7a0aafac9","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as","page_number":278,"box":{"x":116,"y":800,"width":718,"height":12}},{"id":"5ad2a132-ca73-4b37-9350-6e83ce1d15a6","block_type":"box","text":"shorthand to describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative","page_number":278,"box":{"x":116,"y":816,"width":732,"height":12}},{"id":"7c75504a-e809-41d3-8e1a-c9fcede59183","block_type":"box","text":"grade). The terms investment grade and speculative grade are market conventions and do not imply","page_number":278,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"da7c6c2c-0822-4991-b8e9-e03075a6c3b9","block_type":"box","text":"any recommendation or endorsement of a specific security for investment purposes. Investment grade","page_number":278,"box":{"x":116,"y":847,"width":764,"height":12}},{"id":"157c30d1-0cb8-4d3a-a7f3-1ed5cfed3e90","block_type":"box","text":"categories indicate relatively low to moderate credit risk, while ratings in the speculative categories","page_number":278,"box":{"x":116,"y":862,"width":737,"height":12}},{"id":"fd1b093c-8a23-40af-b7e3-6580b8c87e9a","block_type":"box","text":"either signal a higher level of credit risk or that a default has already occurred.","page_number":278,"box":{"x":116,"y":878,"width":584,"height":12}},{"id":"94bcf2fb-2998-4df6-be0f-0cc061db4f56","block_type":"box","text":"A-7","page_number":278,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"2f1f6861-5ccd-4c82-af41-feaaf9fd145e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":278,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"195f4b3e-5e29-4eb2-8599-c6e7c02894d6","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not","page_number":279,"box":{"x":117,"y":87,"width":750,"height":12}},{"id":"d92d55cc-1d5b-494b-92df-ad1cf175cd68","block_type":"box","text":"and have not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":279,"box":{"x":116,"y":102,"width":603,"height":13}},{"id":"1649372f-3c27-4df0-ae90-2fcc42fad5ec","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk","page_number":279,"box":{"x":117,"y":132,"width":770,"height":12}},{"id":"f5cf6c79-150b-4fdf-87d0-7fe22d3e34fc","block_type":"box","text":"and are not predictive of a specific frequency of default or loss. For information about the historical","page_number":279,"box":{"x":116,"y":147,"width":735,"height":12}},{"id":"20932350-8eaf-4d73-b3d5-46d089800fdc","block_type":"box","text":"performance of ratings please refer to Fitch’s Ratings Transition and Default studies which detail the","page_number":279,"box":{"x":117,"y":163,"width":747,"height":12}},{"id":"37943ef6-0e14-40c7-b294-307ac2a85dc9","block_type":"box","text":"historical default rates and their meaning. The European Securities and Markets Authority also","page_number":279,"box":{"x":117,"y":178,"width":705,"height":12}},{"id":"09a25d09-051d-471f-946c-3a4f6c02164e","block_type":"box","text":"maintains a central repository of historical default rates.","page_number":279,"box":{"x":117,"y":194,"width":415,"height":12}},{"id":"af703708-8076-48ad-b713-a9789bdb9fba","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not","page_number":279,"box":{"x":117,"y":223,"width":756,"height":12}},{"id":"69b31e3f-99bb-4ce6-b2f1-ece84cd6d625","block_type":"box","text":"deal with the risk of a market value loss on a rated security due to changes in interest rates, liquidity","page_number":279,"box":{"x":116,"y":239,"width":747,"height":12}},{"id":"0b7de9a7-1a84-4e54-8f17-5126c1c0a827","block_type":"box","text":"and other market considerations. However, in terms of payment obligation on the rated liability, market","page_number":279,"box":{"x":116,"y":254,"width":765,"height":12}},{"id":"0ce7ca02-1960-401f-b322-cb4e9fdc2222","block_type":"box","text":"risk may be considered to the extent that it influences the ability of an issuer to pay upon a","page_number":279,"box":{"x":117,"y":270,"width":674,"height":12}},{"id":"659fda5a-586c-4a3b-a8f5-f74bd77bf682","block_type":"box","text":"commitment.","page_number":279,"box":{"x":116,"y":285,"width":101,"height":10}},{"id":"685f51b1-48fa-4e05-b5f8-990acd0290e3","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other","page_number":279,"box":{"x":117,"y":314,"width":709,"height":12}},{"id":"21e67a9d-6fab-4b17-b79a-a4e785eca4e3","block_type":"box","text":"conditionality of the obligation to pay upon a commitment (for example, in the case of index-linked","page_number":279,"box":{"x":116,"y":330,"width":731,"height":12}},{"id":"03fae8e9-0b76-4ca9-b095-152d819893a8","block_type":"box","text":"bonds).","page_number":279,"box":{"x":117,"y":345,"width":59,"height":12}},{"id":"bc37f591-e5f7-46e7-87f1-023fc8736863","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency","page_number":279,"box":{"x":117,"y":375,"width":725,"height":12}},{"id":"a5b43166-4190-430b-af6a-31f5aa986312","block_type":"box","text":"typically rates to the likelihood of non-payment or default in accordance with the terms of that","page_number":279,"box":{"x":116,"y":390,"width":695,"height":12}},{"id":"7d65082b-7d9c-4e3e-a9ac-d0b987b5c20e","block_type":"box","text":"instrument’s documentation. In limited cases, Fitch may include additional considerations (i.e. rate to a","page_number":279,"box":{"x":117,"y":406,"width":764,"height":12}},{"id":"262ccf58-7518-4afe-868d-a32c11921da0","block_type":"box","text":"higher or lower standard than that implied in the obligation’s documentation).","page_number":279,"box":{"x":117,"y":421,"width":573,"height":12}},{"id":"020afa9c-53df-4647-8204-e46356381983","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or","page_number":279,"box":{"x":116,"y":450,"width":719,"height":12}},{"id":"2a4e6094-32d1-404a-b27c-3af5fc36a200","block_type":"box","text":"certain note issuance programs or for private ratings. In this case the rating is not published, but only","page_number":279,"box":{"x":116,"y":466,"width":753,"height":12}},{"id":"949ac8d4-1906-4c7e-ab57-392deaf54304","block_type":"box","text":"provided to the issuer or its agents in the form of a rating letter.","page_number":279,"box":{"x":117,"y":481,"width":472,"height":12}},{"id":"e71924ef-c609-4ba1-ae7d-6ea7c755bbb6","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope,","page_number":279,"box":{"x":116,"y":511,"width":702,"height":12}},{"id":"64a2a560-5a6b-47fa-a03b-089ac4fb73af","block_type":"box","text":"including interest strips and return of principal or in other forms of opinions such as credit opinions or","page_number":279,"box":{"x":117,"y":526,"width":751,"height":12}},{"id":"c4cecfe0-f2a3-442c-bd5a-d3a80fa1a837","block_type":"box","text":"rating assessment services. Credit opinions are either a notch- or category-specific view using the","page_number":279,"box":{"x":117,"y":542,"width":731,"height":12}},{"id":"0d5718af-2601-4876-9eec-c7ab7f0f3118","block_type":"box","text":"primary rating scale and omit one or more characteristics of a full rating or meet them to a different","page_number":279,"box":{"x":117,"y":557,"width":736,"height":12}},{"id":"25664d86-c573-4764-91ec-006d9d2ead50","block_type":"box","text":"standard. Credit opinions will be indicated using a lower case letter symbol combined with either an ‘*’","page_number":279,"box":{"x":116,"y":573,"width":760,"height":12}},{"id":"0610e8f3-c0d8-44db-9e15-7dee51447ceb","block_type":"box","text":"(e.g. ‘bbb+*’) or (cat) suffix to denote the opinion status. Credit opinions will be point-in-time typically","page_number":279,"box":{"x":117,"y":588,"width":748,"height":12}},{"id":"ea23e770-9d02-4880-aa99-23bab45f0aa7","block_type":"box","text":"but may be monitored if the analytical group believes information will be sufficiently available. Rating","page_number":279,"box":{"x":117,"y":604,"width":748,"height":12}},{"id":"ed4b7da2-8e5c-41f0-bc67-0401316a8677","block_type":"box","text":"assessment services are a notch-specific view using the primary rating scale of how an existing or","page_number":279,"box":{"x":116,"y":619,"width":733,"height":12}},{"id":"aa2f17c6-3cb9-4ff8-aefb-6997685182ef","block_type":"box","text":"potential rating may be changed by a given set of hypothetical circumstances. While credit opinions","page_number":279,"box":{"x":117,"y":635,"width":742,"height":12}},{"id":"e184e717-abec-4b45-b9d6-b4136a1714f5","block_type":"box","text":"and rating assessment services are point-in-time and are not monitored, they may have a directional","page_number":279,"box":{"x":116,"y":650,"width":750,"height":12}},{"id":"fd6fae0f-8d1f-4cca-8132-b5a66aebb80d","block_type":"box","text":"watch or outlook assigned, which can signify the trajectory of the credit profile.","page_number":279,"box":{"x":116,"y":666,"width":579,"height":12}},{"id":"60e56d96-9e34-40f0-9809-be8ab7837e53","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":279,"box":{"x":117,"y":695,"width":629,"height":12}},{"id":"e1d82723-261b-45f4-a773-9ceb04e39a86","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative","page_number":279,"box":{"x":117,"y":724,"width":677,"height":12}},{"id":"6bce8d7b-13cd-44e9-9c56-7861ce13501d","block_type":"box","text":"vulnerability to default on an ordinal scale. In addition, for financial obligations in corporate finance, a","page_number":279,"box":{"x":116,"y":740,"width":746,"height":12}},{"id":"e447217f-bb68-4ea9-9f0c-214ab82d00c5","block_type":"box","text":"measure of recovery given default on that liability is also included in the rating assessment. This","page_number":279,"box":{"x":117,"y":755,"width":711,"height":12}},{"id":"8bb86bca-2a67-438c-b57f-52b313539c87","block_type":"box","text":"notably applies to covered bonds ratings, which incorporate both an indication of the probability of","page_number":279,"box":{"x":117,"y":771,"width":725,"height":12}},{"id":"bc991f52-0969-49d1-9486-0bd75771cf30","block_type":"box","text":"default and of the recovery given a default of this debt instrument. On the contrary, Ratings of","page_number":279,"box":{"x":116,"y":786,"width":695,"height":12}},{"id":"10ec19de-84f0-49a7-8b59-a7c957e46b44","block_type":"box","text":"debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":279,"box":{"x":116,"y":802,"width":636,"height":12}},{"id":"e1084af5-26a9-4c12-887e-66883c73c8fd","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average","page_number":279,"box":{"x":116,"y":831,"width":750,"height":12}},{"id":"3b4841c2-ee67-4f2a-8965-877b397b2285","block_type":"box","text":"recovery. Individual obligations can be assigned ratings higher, lower, or the same as that entity’s","page_number":279,"box":{"x":117,"y":847,"width":728,"height":12}},{"id":"4235f2e5-8745-4c10-9458-0fca817cd86c","block_type":"box","text":"issuer rating or issuer default rating (“IDR”), based on their relative ranking, relative vulnerability to","page_number":279,"box":{"x":117,"y":862,"width":733,"height":12}},{"id":"a2dba01a-6f60-41cc-affd-19681addde9b","block_type":"box","text":"default or based on explicit Recovery Ratings.","page_number":279,"box":{"x":116,"y":877,"width":347,"height":13}},{"id":"4c475b8f-f28e-47d0-b840-72a3f4c9bd79","block_type":"box","text":"A-8","page_number":279,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"235cfd58-b47e-4af5-aea6-d52aea78dcf4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":279,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4b772d33-230b-4723-9e31-1d22f6b172e2","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower,","page_number":280,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"26284089-ac63-4d8c-96d9-375827df3cea","block_type":"box","text":"or the same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an","page_number":280,"box":{"x":116,"y":102,"width":766,"height":13}},{"id":"5d4303a6-2e34-4c9f-bc95-95888615ffc2","block_type":"box","text":"IDR. At the lower end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to","page_number":280,"box":{"x":117,"y":118,"width":756,"height":12}},{"id":"54577681-8cea-4b22-9447-1e734556d9c9","block_type":"box","text":"complement issuer and obligation ratings.","page_number":280,"box":{"x":116,"y":134,"width":315,"height":12}},{"id":"d0aa4f0f-964f-4e4c-8a79-74037da93302","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":280,"box":{"x":117,"y":165,"width":412,"height":12}},{"id":"7970e67c-3ce6-4d75-9603-37589e4c500f","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are","page_number":280,"box":{"x":116,"y":196,"width":731,"height":12}},{"id":"47e5a980-fcf2-4920-8487-654ea0bd7c44","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments.","page_number":280,"box":{"x":175,"y":211,"width":700,"height":12}},{"id":"0b441c38-28b8-42ba-840c-dbc4541f1e83","block_type":"box","text":"This capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":280,"box":{"x":175,"y":227,"width":586,"height":12}},{"id":"3359ce68-2d0d-4510-a258-d002ea642cf5","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate","page_number":280,"box":{"x":116,"y":250,"width":765,"height":12}},{"id":"9b18bd62-df16-4914-be16-352ac4a1edcb","block_type":"box","text":"very strong capacity for payment of financial commitments. This capacity is not significantly","page_number":280,"box":{"x":175,"y":265,"width":682,"height":12}},{"id":"85d7ef9b-c58c-4edd-8f70-a0d12fdb186d","block_type":"box","text":"vulnerable to foreseeable events.","page_number":280,"box":{"x":175,"y":281,"width":252,"height":9}},{"id":"59da68d4-256d-422d-b866-e586bfa834e7","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment","page_number":280,"box":{"x":116,"y":304,"width":767,"height":12}},{"id":"1db4f73f-2783-42b0-b3f4-11fe20b075d7","block_type":"box","text":"of financial commitments is considered strong. This capacity may, nevertheless, be more","page_number":280,"box":{"x":175,"y":320,"width":665,"height":12}},{"id":"6548eb9d-e755-4afe-8b9e-30c0cf8cda84","block_type":"box","text":"vulnerable to adverse business or economic conditions than is the case for higher ratings.","page_number":280,"box":{"x":175,"y":335,"width":671,"height":12}},{"id":"949e87b3-0664-47dd-9708-71d6c55dca61","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low.","page_number":280,"box":{"x":117,"y":358,"width":739,"height":12}},{"id":"5331aa27-8750-42cb-ba2e-c146cce7cd27","block_type":"box","text":"The capacity for payment of financial commitments is considered adequate, but adverse","page_number":280,"box":{"x":175,"y":374,"width":659,"height":12}},{"id":"9484b159-8bf7-455c-8109-b7eaa6995748","block_type":"box","text":"business or economic conditions are more likely to impair this capacity.","page_number":280,"box":{"x":176,"y":389,"width":532,"height":12}},{"id":"7668d528-9b47-40a8-b46e-f244d233e3d5","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event","page_number":280,"box":{"x":117,"y":413,"width":769,"height":12}},{"id":"bf4e298d-0113-4183-824c-29fa5aa3e89e","block_type":"box","text":"of adverse changes in business or economic conditions over time; however, business or","page_number":280,"box":{"x":175,"y":428,"width":659,"height":12}},{"id":"45f1b708-1932-40db-ae25-506c4f798844","block_type":"box","text":"financial alternatives may be available to allow financial commitments to be met.","page_number":280,"box":{"x":175,"y":444,"width":600,"height":12}},{"id":"fd94fb84-adea-4612-a6ce-d3ae994b6ec6","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":280,"box":{"x":117,"y":467,"width":603,"height":12}},{"id":"49279729-5f2c-4fd3-826a-110d9b71c1bc","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":280,"box":{"x":117,"y":490,"width":681,"height":12}},{"id":"6eb922b1-2d4a-4d28-a28c-89e59c38feed","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":280,"box":{"x":117,"y":513,"width":675,"height":12}},{"id":"3c9c3575-1988-4339-9c0a-671f23a7eed9","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":280,"box":{"x":117,"y":537,"width":746,"height":12}},{"id":"dbfb09df-acf7-4de6-a766-080d9bd41401","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating","page_number":280,"box":{"x":116,"y":568,"width":765,"height":12}},{"id":"e9fbd290-e469-416e-815d-8b03924c1845","block_type":"box","text":"to denote relative status within major rating categories.","page_number":280,"box":{"x":116,"y":583,"width":411,"height":12}},{"id":"9803bc28-82f1-4f18-a827-14ca67ca4e8a","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a","page_number":280,"box":{"x":117,"y":614,"width":755,"height":12}},{"id":"74063076-cbca-4ef9-9c1b-d1096cab6ab8","block_type":"box","text":"rating level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For","page_number":280,"box":{"x":117,"y":630,"width":745,"height":12}},{"id":"00c4c9d5-edc9-46a1-984a-69da98168373","block_type":"box","text":"the short-term rating category of ‘F1’, a ‘+’ may be appended.","page_number":280,"box":{"x":116,"y":645,"width":461,"height":12}},{"id":"e520d963-05f3-4484-9e38-800dd6bd7429","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":280,"box":{"x":117,"y":676,"width":629,"height":12}},{"id":"b06e7e90-4273-4ff7-8873-922069d00565","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of","page_number":280,"box":{"x":116,"y":707,"width":760,"height":12}},{"id":"25f741b4-adb0-43c7-879e-97feca65878b","block_type":"box","text":"the rated entity and relates to the capacity to meet financial obligations in accordance with the","page_number":280,"box":{"x":116,"y":723,"width":696,"height":12}},{"id":"42f1e0f8-c6cf-4ddb-b81d-c3ee56e1fa37","block_type":"box","text":"documentation governing the relevant obligation. Short-term deposit ratings may be adjusted for loss","page_number":280,"box":{"x":116,"y":738,"width":748,"height":12}},{"id":"2752a6c8-48d3-487f-8203-613a3535263b","block_type":"box","text":"severity. Short-term ratings are assigned to obligations whose initial maturity is viewed as “short term”","page_number":280,"box":{"x":116,"y":754,"width":755,"height":12}},{"id":"a5ac00dd-ae23-4182-91f3-4b8221ed9f01","block_type":"box","text":"based on market convention. 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The Guidelines include “climate and decarbonization”","page_number":282,"box":{"x":117,"y":615,"width":741,"height":12}},{"id":"53e615aa-2a62-4609-b32d-5776bf88735c","block_type":"box","text":"guidelines which apply to the Funds listed in Appendix A, if any.","page_number":282,"box":{"x":116,"y":631,"width":477,"height":12}},{"id":"62292b82-5452-4ee5-8188-4e5bd50e2713","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy","page_number":282,"box":{"x":117,"y":661,"width":714,"height":12}},{"id":"33fc8f8b-a29b-46ca-b05a-8996fb1aff1e","block_type":"box","text":"issues in respect of securities held by each such Fund (or may refrain from voting) in accordance with","page_number":282,"box":{"x":117,"y":677,"width":753,"height":12}},{"id":"bf2e050a-22f2-4dcc-b496-475460758c17","block_type":"box","text":"the Guidelines.","page_number":282,"box":{"x":116,"y":692,"width":110,"height":10}},{"id":"93b542e2-0ff2-45d9-a53d-40473c99a9ef","block_type":"box","text":"Conflicts Management","page_number":282,"box":{"x":116,"y":723,"width":179,"height":12}},{"id":"f7b55dce-ec0f-4f8b-8570-42d210c7d403","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to","page_number":282,"box":{"x":117,"y":753,"width":729,"height":12}},{"id":"50f13a3b-a018-4b5f-b67a-9db10572be93","block_type":"box","text":"prevent undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of","page_number":282,"box":{"x":117,"y":769,"width":714,"height":12}},{"id":"ba6a2fa6-966b-4920-86c6-17b7a7685df7","block_type":"box","text":"interest in the exercise of proxy voting responsibilities. Potential material conflicts, and the resultant","page_number":282,"box":{"x":117,"y":784,"width":736,"height":12}},{"id":"05494615-9ae6-40da-a8c9-2388ac353481","block_type":"box","text":"potential for undue influence, might be due to a relationship between the investee company (or any","page_number":282,"box":{"x":117,"y":800,"width":734,"height":12}},{"id":"a4b1b08c-5fc8-4438-bfb8-56487800d2fd","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates or employees,","page_number":282,"box":{"x":116,"y":815,"width":752,"height":12}},{"id":"a052b49c-e28a-4e8e-8cdd-475cb0ccd54e","block_type":"box","text":"or a Fund or a Fund’s affiliates. BlackRock has taken certain steps to mitigate potential conflicts, which","page_number":282,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"f8ef513f-3311-440c-bcf8-5b6de7e14488","block_type":"box","text":"are outlined in detail in the Guidelines. In mitigating conflicts, BAIS will adhere to the Guidelines.","page_number":282,"box":{"x":116,"y":846,"width":719,"height":12}},{"id":"cf46a39d-1fbf-497e-abfb-78fdf3200699","block_type":"box","text":"BlackRock","page_number":282,"box":{"x":117,"y":878,"width":89,"height":9}},{"id":"e8b46979-07f4-47d3-8c7a-4a882014f4a3","block_type":"box","text":"Public Page 1 of 3","page_number":282,"box":{"x":488,"y":878,"width":400,"height":12}},{"id":"549a0227-f647-44ae-85d5-44b388df4b14","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":282,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6fa44003-e220-4973-a0ba-1e2eba674222","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":283,"box":{"x":380,"y":87,"width":508,"height":12}},{"id":"3e5d5642-1772-45d0-988b-eecbf6e7a97a","block_type":"box","text":"In certain instances, BAIS will engage an independent third-party voting service provider to make proxy","page_number":283,"box":{"x":117,"y":118,"width":770,"height":12}},{"id":"73454625-a13a-4d57-aecc-5f31455ce4e3","block_type":"box","text":"voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy","page_number":283,"box":{"x":116,"y":134,"width":709,"height":12}},{"id":"3c06a16d-0838-4311-b695-c193fb49cb36","block_type":"box","text":"regulatory compliance requirements, or as may be otherwise required by applicable law.","page_number":283,"box":{"x":117,"y":149,"width":658,"height":12}},{"id":"7b24a844-df1f-4cf7-9446-114ef92fb7ff","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be","page_number":283,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"de4927c2-33ba-4f7a-8dbe-55acbdc8de16","block_type":"box","text":"voted and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary","page_number":283,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"8bf10087-3414-41f6-9f1f-55e36f4a9a36","block_type":"box","text":"responsibility to act in clients’ financial interests. The Guidelines set forth BlackRock’s approach to","page_number":283,"box":{"x":117,"y":211,"width":733,"height":12}},{"id":"e91fee6d-48f5-4c78-a4d5-cf61b7ab5fa7","block_type":"box","text":"recalling securities on loan in connection with proxy voting.","page_number":283,"box":{"x":117,"y":227,"width":440,"height":12}},{"id":"23ed3c76-12e1-4f12-85ec-f1ed03d309b7","block_type":"box","text":"Reports to the Board","page_number":283,"box":{"x":117,"y":258,"width":171,"height":11}},{"id":"84d2e20c-2990-40c2-bf5d-1b303559f700","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process","page_number":283,"box":{"x":117,"y":289,"width":767,"height":12}},{"id":"94cc56ad-c148-470b-8822-e7630f44e1f2","block_type":"box","text":"as applicable to the Funds covered by this policy in the preceding year together with a 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We are committed to building strong relationships through","page_number":288,"box":{"x":117,"y":287,"width":736,"height":12}},{"id":"85d88a7d-6153-4dc7-bd67-11cd49325fc1","block_type":"box","text":"constructive, ongoing dialogue with the boards and executive management of the companies in which","page_number":288,"box":{"x":116,"y":303,"width":760,"height":12}},{"id":"e5c163a1-3964-4d8b-be2c-adcc39645643","block_type":"box","text":"our clients are invested.","page_number":288,"box":{"x":116,"y":318,"width":182,"height":10}},{"id":"d77c2818-98c8-420c-8b55-00691dc3391d","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":288,"box":{"x":259,"y":356,"width":486,"height":9}},{"id":"7e0d978c-9771-4dce-ac19-cbf0e321de6a","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management","page_number":288,"box":{"x":117,"y":386,"width":764,"height":12}},{"id":"f077b8b8-cc54-467f-a687-1e92f75cd2f9","block_type":"box","text":"Group and manages BlackRock’s stewardship engagement and voting on behalf of clients invested in","page_number":288,"box":{"x":117,"y":402,"width":758,"height":12}},{"id":"b26c0532-78cc-4854-9822-ece2484e256a","block_type":"box","text":"active strategies globally. BAIS is also responsible for engagement with issuers in index fixed income","page_number":288,"box":{"x":116,"y":417,"width":755,"height":12}},{"id":"6091fb4c-7ee1-483a-bde4-50b776dc7bb5","block_type":"box","text":"strategies, where appropriate. Our activities are informed by these Global Engagement and Voting","page_number":288,"box":{"x":116,"y":433,"width":735,"height":12}},{"id":"4d2b023b-b147-4654-9846-75399b2bf9f0","block_type":"box","text":"Guidelines (the “Guidelines”) and insights from active investment analysts and portfolio managers, with","page_number":288,"box":{"x":117,"y":448,"width":768,"height":12}},{"id":"0c69d1ab-0329-46b0-a909-a1b5c3458d07","block_type":"box","text":"whom we work closely in engaging companies and voting at shareholder meetings.","page_number":288,"box":{"x":116,"y":464,"width":622,"height":12}},{"id":"ea8b65df-e972-4e52-9409-5666207a3301","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within","page_number":288,"box":{"x":117,"y":494,"width":680,"height":12}},{"id":"21602d1a-19d1-4949-8c71-35ec7dd2f8db","block_type":"box","text":"fundamental active investing.","page_number":288,"box":{"x":116,"y":509,"width":215,"height":13}},{"id":"58f04eb3-f520-45cb-b55f-9bf242e4f31d","block_type":"box","text":"3","page_number":288,"box":{"x":333,"y":510,"width":5,"height":6}},{"id":"24cc0152-7329-4c68-b86d-0483f0878e9b","block_type":"box","text":"Through direct dialogue with company leadership, we seek to","page_number":288,"box":{"x":339,"y":510,"width":466,"height":12}},{"id":"7a7d8ad6-6495-4feb-9d32-28f0746a4d73","block_type":"box","text":"understand their businesses and how they manage risks and opportunities to deliver durable, risk","page_number":288,"box":{"x":117,"y":525,"width":727,"height":12}},{"id":"2301db88-1e18-4ebd-9a56-4027efe8b12a","block_type":"box","text":"adjusted financial returns. Portfolio managers and stewardship specialists may engage jointly or","page_number":288,"box":{"x":116,"y":540,"width":716,"height":13}},{"id":"f115ac3c-f189-4da3-9a94-284db8d3642b","block_type":"box","text":"independently on material corporate governance matters. Our discussions focus on topics relevant to a","page_number":288,"box":{"x":117,"y":556,"width":769,"height":12}},{"id":"79b9879b-44dc-467c-91cb-4414f9e3b39f","block_type":"box","text":"company’s success over time, including governance and leadership, corporate strategy, capital","page_number":288,"box":{"x":116,"y":572,"width":711,"height":12}},{"id":"ca33f3f6-2bcf-4c06-ba21-11f9357e3039","block_type":"box","text":"structure and financial performance, operations and material sustainability-related risks, as well as","page_number":288,"box":{"x":116,"y":587,"width":734,"height":12}},{"id":"fcb4bfb6-6041-4a96-8c49-efd0894c66d9","block_type":"box","text":"macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are","page_number":288,"box":{"x":117,"y":603,"width":717,"height":12}},{"id":"7f074a51-ce3f-4756-b4a5-95e3a7063c3a","block_type":"box","text":"generally supportive of management teams that have a track record of financial value creation. We aim","page_number":288,"box":{"x":116,"y":618,"width":770,"height":12}},{"id":"2913e5b7-597a-42e3-be9c-8488a71548e2","block_type":"box","text":"to build and maintain strong relationships with company leadership based on open dialogue and","page_number":288,"box":{"x":116,"y":634,"width":717,"height":12}},{"id":"2a68b03c-1a08-4575-9293-079d43cc33b3","block_type":"box","text":"mutual respect.","page_number":288,"box":{"x":117,"y":649,"width":118,"height":12}},{"id":"a0acd377-ccec-4467-a5a9-d49ae2215548","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the","page_number":288,"box":{"x":117,"y":679,"width":744,"height":12}},{"id":"6d92607a-4da6-434d-bbbc-0baa6badb5e6","block_type":"box","text":"latitude each portfolio manager has to make independent voting decisions on their holdings. For","page_number":288,"box":{"x":117,"y":695,"width":711,"height":12}},{"id":"073f0b71-68ee-4b77-9cff-a1e2d1bbae85","block_type":"box","text":"example, BAIS will generally vote the holdings in Systematic Active Equity portfolios in accordance","page_number":288,"box":{"x":116,"y":710,"width":732,"height":12}},{"id":"2a75d17d-9c9f-4b48-8f23-100515b55882","block_type":"box","text":"with these guidelines. We provide voting recommendations to fundamental equity portfolio managers,","page_number":288,"box":{"x":116,"y":726,"width":751,"height":12}},{"id":"aab5eaab-8421-4e4f-a791-78db4c20c10c","block_type":"box","text":"who may determine to vote differently based on each portfolio’s investment objectives and strategy.","page_number":288,"box":{"x":116,"y":741,"width":737,"height":12}},{"id":"98da7e0b-f9bd-42eb-a7c3-b68e0346d123","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":288,"box":{"x":116,"y":772,"width":749,"height":12}},{"id":"af95e661-7bd5-404e-b51a-d538f75a30a5","block_type":"box","text":"management teams and board directors","page_number":288,"box":{"x":117,"y":787,"width":297,"height":12}},{"id":"4f1da8e9-b83c-4d35-b709-da92133940dd","block_type":"box","text":"4","page_number":288,"box":{"x":414,"y":787,"width":6,"height":6}},{"id":"8428596f-e6e4-4929-8659-19ff4f0e8738","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We","page_number":288,"box":{"x":424,"y":787,"width":456,"height":12}},{"id":"c77efe42-89c2-41f6-8292-7583d440aee0","block_type":"box","text":"3","page_number":288,"box":{"x":143,"y":812,"width":4,"height":5}},{"id":"4a499441-c453-468c-946b-152b0e072e13","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":288,"box":{"x":170,"y":812,"width":660,"height":10}},{"id":"491e2ed4-6a62-43b0-a1e7-f69b0afa9803","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":288,"box":{"x":170,"y":825,"width":695,"height":10}},{"id":"1c4c9aaf-f755-43ed-ab42-c36e2c8cb6c4","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the effect,","page_number":288,"box":{"x":170,"y":838,"width":707,"height":10}},{"id":"f8dacc7e-776b-470a-889b-f80e8150cb1a","block_type":"box","text":"of changing or influencing control of the company.","page_number":288,"box":{"x":170,"y":851,"width":295,"height":10}},{"id":"62d03634-834f-45b3-9fcd-df95d38165fc","block_type":"box","text":"4","page_number":288,"box":{"x":143,"y":867,"width":4,"height":4}},{"id":"81aa25b7-f631-4b44-8cf0-98f78d76fbe0","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory boards","page_number":288,"box":{"x":171,"y":866,"width":710,"height":10}},{"id":"1d65bef1-7877-4a34-9967-0c72aaffd7e3","block_type":"box","text":"and their members, where relevant.","page_number":288,"box":{"x":170,"y":879,"width":210,"height":9}},{"id":"7d2f2b95-bfce-4cf2-9dd3-5c1bc038a5cc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":288,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"643d30e1-878d-4533-b450-60dbb092ab7e","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":288,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"f9f742ca-44ee-4fb5-a911-178b1673c979","block_type":"box","text":"4","page_number":288,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"7a5e4994-685d-4e0d-be03-8a4a461f6fe1","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":288,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"abc5b20d-55b6-458b-902e-3cca3c61693c","block_type":"box","text":"recognize that accepted corporate governance norms can differ across markets, and believe these","page_number":289,"box":{"x":117,"y":87,"width":736,"height":12}},{"id":"d105da87-2293-44be-b4f6-fa57b85c4f82","block_type":"box","text":"guidelines represent globally applicable elements of governance that support a company’s ability to","page_number":289,"box":{"x":116,"y":102,"width":741,"height":13}},{"id":"6390b791-f741-4712-9cde-45a7a40f9a44","block_type":"box","text":"manage material risks and opportunities and deliver financial returns to investors. Generally, we","page_number":289,"box":{"x":117,"y":118,"width":715,"height":12}},{"id":"df983797-4022-4fcc-90e7-6f582c4088ad","block_type":"box","text":"believe companies should observe accepted corporate governance norms within their local markets or,","page_number":289,"box":{"x":117,"y":134,"width":768,"height":12}},{"id":"b6c2de15-2c37-4d8e-8003-207f286e5e0e","block_type":"box","text":"particularly in markets without well-established norms, aspire to widely recognized international best","page_number":289,"box":{"x":117,"y":149,"width":746,"height":12}},{"id":"4c140693-0f05-483a-8cd3-b515867551e5","block_type":"box","text":"practices. As one of many minority shareholders, BlackRock cannot – and does not try to – direct a","page_number":289,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"0e036d10-deef-447a-9423-0b64ddb53e93","block_type":"box","text":"company’s strategy or its implementation. We look to companies to provide disclosures that explain","page_number":289,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"ee11c8b3-ae8c-4a97-a684-b27e4da49286","block_type":"box","text":"how their approach to corporate governance best aligns with the financial interests of their investors.","page_number":289,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"3a105039-d143-4f77-aba2-4bcd863cb765","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":289,"box":{"x":246,"y":234,"width":513,"height":11}},{"id":"e2274d4c-3e9b-44fd-8fc9-ec8bece131c5","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":289,"box":{"x":116,"y":265,"width":713,"height":12}},{"id":"4bb64b83-f68c-4973-a085-567736d4b058","block_type":"box","text":"corporate governance. The voting rights attached to clients’ holdings are an important mechanism for","page_number":289,"box":{"x":116,"y":281,"width":756,"height":12}},{"id":"7ee65278-e74a-4156-a30b-525bad6ac588","block_type":"box","text":"investors to express support for, or concern about, a company’s performance. As a fiduciary,","page_number":289,"box":{"x":117,"y":296,"width":692,"height":12}},{"id":"f77cfaa2-ce1c-43a6-9e48-6e366eae38dd","block_type":"box","text":"BlackRock is legally required to make proxy voting determinations, on behalf of clients who have","page_number":289,"box":{"x":117,"y":312,"width":720,"height":12}},{"id":"fc7a931c-90a2-4aed-8561-4ec97dd921eb","block_type":"box","text":"delegated voting authority to us, in a manner consistent with BlackRock’s contractual arrangements","page_number":289,"box":{"x":116,"y":327,"width":743,"height":12}},{"id":"7b3252ef-376d-4aec-9cdc-999d9035f075","block_type":"box","text":"with clients and funds.","page_number":289,"box":{"x":116,"y":343,"width":170,"height":9}},{"id":"4c10c9bb-b3c2-46b2-b97e-5562490ea8e7","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As","page_number":289,"box":{"x":117,"y":374,"width":740,"height":12}},{"id":"0f1fdd80-165c-47b2-8b33-4d2bdb686b29","block_type":"box","text":"indicated below, we may vote against management recommendations when we have concerns about","page_number":289,"box":{"x":117,"y":389,"width":755,"height":12}},{"id":"22642e9b-6cbc-46a2-acae-37de11deca18","block_type":"box","text":"how companies are serving the financial interests of our clients as their shareholders. BAIS takes a","page_number":289,"box":{"x":117,"y":405,"width":740,"height":12}},{"id":"95a85efc-e722-47c4-a547-fe3fca6ef043","block_type":"box","text":"globally consistent approach to voting but considers the different corporate governance regulations and","page_number":289,"box":{"x":116,"y":420,"width":772,"height":12}},{"id":"15429243-cb39-45f3-8669-ec837dec1854","block_type":"box","text":"norms across markets. Votes are determined on a case-by-case basis, in the context of a company’s","page_number":289,"box":{"x":117,"y":436,"width":753,"height":12}},{"id":"bf94de42-3c46-4534-b00c-736206c40a7c","block_type":"box","text":"situation and the investment mandate we have from clients. Please see page 19 for more information","page_number":289,"box":{"x":116,"y":451,"width":756,"height":12}},{"id":"2439f267-f3ae-4652-925c-15043d25625c","block_type":"box","text":"about how we fulfill and oversee our investment stewardship responsibilities for BlackRock’s non-index","page_number":289,"box":{"x":116,"y":467,"width":768,"height":12}},{"id":"93a3fa05-d458-4405-9203-96bdec54dacc","block_type":"box","text":"equity strategies.","page_number":289,"box":{"x":116,"y":482,"width":125,"height":12}},{"id":"f8849da1-8d5f-4fd6-8e23-b651f3ce383d","block_type":"box","text":"5","page_number":289,"box":{"x":243,"y":483,"width":6,"height":6}},{"id":"a2cd2d98-2949-4308-84fa-475ac13e817b","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":289,"box":{"x":257,"y":521,"width":490,"height":10}},{"id":"bb0cc346-3b75-4f54-ae1d-be1cbc9bf5ad","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer","page_number":289,"box":{"x":116,"y":552,"width":695,"height":12}},{"id":"24c60c0d-5bbb-44d1-8a70-d1b380e5caab","block_type":"box","text":"engagement is a component of fixed income investment strategies at BlackRock, particularly for those","page_number":289,"box":{"x":116,"y":568,"width":762,"height":12}},{"id":"d9c8e3d7-5220-4575-867a-7b7933075188","block_type":"box","text":"with sustainability objectives in addition to financial objectives. Most corporate governance-related","page_number":289,"box":{"x":116,"y":583,"width":732,"height":12}},{"id":"e4b4da18-17bb-4751-b5a3-6ad10d85cc29","block_type":"box","text":"fixed income engagements are undertaken in conjunction with the active investment stewardship team,","page_number":289,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"e28af276-f315-4f4a-9b44-3c9062069dc7","block_type":"box","text":"and often active equity investors. In addition to the topics listed below, engagement with fixed income","page_number":289,"box":{"x":116,"y":614,"width":757,"height":12}},{"id":"e5a192f7-fa82-4079-80c2-4c868f87c134","block_type":"box","text":"investment teams may help inform an issuer’s approach to structuring specialist issuances and the","page_number":289,"box":{"x":117,"y":630,"width":736,"height":12}},{"id":"cdb3b2ff-2b63-4437-9c40-7756ea9945ae","block_type":"box","text":"standard terms and information in bond documentation.","page_number":289,"box":{"x":116,"y":645,"width":417,"height":10}},{"id":"a8c192bc-e79b-432a-ac96-958cf345f191","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":289,"box":{"x":398,"y":684,"width":203,"height":9}},{"id":"2d672a0c-b009-4f1c-8c1b-86f2f6f193d8","block_type":"box","text":"Roles and responsibilities","page_number":289,"box":{"x":117,"y":715,"width":207,"height":12}},{"id":"a01e4140-6334-4b71-aa8a-521c8d81bb44","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board","page_number":289,"box":{"x":116,"y":746,"width":764,"height":12}},{"id":"fc10e230-11ef-41ee-9283-a1de9deef705","block_type":"box","text":"of directors that is able to advise and supervise management in an independent and objective","page_number":289,"box":{"x":116,"y":761,"width":695,"height":13}},{"id":"3c58b5b8-6b32-461c-87c5-0249170dcd3f","block_type":"box","text":"manner.","page_number":289,"box":{"x":117,"y":779,"width":59,"height":7}},{"id":"e19cc079-5bb0-47c1-87b6-45b66854f28c","block_type":"box","text":"6","page_number":289,"box":{"x":178,"y":777,"width":5,"height":6}},{"id":"db25d258-e669-4e45-8165-1db43654f60f","block_type":"box","text":"5","page_number":289,"box":{"x":143,"y":826,"width":4,"height":4}},{"id":"5502879c-f5cb-4088-9144-4e4870118cd4","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":289,"box":{"x":171,"y":825,"width":685,"height":10}},{"id":"546b02f9-a4e1-41e3-8804-56157933a1c7","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":289,"box":{"x":170,"y":838,"width":678,"height":10}},{"id":"7c93e2c7-bad9-4afb-8354-3524f49a2159","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":289,"box":{"x":170,"y":851,"width":458,"height":10}},{"id":"d72e0b75-3396-4cf8-ab63-41ee310c2165","block_type":"box","text":"6","page_number":289,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"36a25bb1-a6f7-4d52-acda-7da57cca8e22","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance principles","page_number":289,"box":{"x":170,"y":867,"width":706,"height":9}},{"id":"f69ceff4-471d-422d-a9ca-9b0084cd036a","block_type":"box","text":"of the US Business Roundtable as examples.","page_number":289,"box":{"x":170,"y":880,"width":268,"height":9}},{"id":"70c85d0b-a69d-4cd1-b37d-aad91551a05a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":289,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"b690934c-63cc-4904-9517-de685976b612","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":289,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"f91e6a5c-9d8e-48fa-97da-37f1ef3ff3eb","block_type":"box","text":"5","page_number":289,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"0a5ecb1c-c382-448a-be2b-7928cd0556b8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":289,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a454b42f-0947-4e4b-9d02-0fe4231a5790","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment","page_number":290,"box":{"x":116,"y":87,"width":762,"height":12}},{"id":"2595c486-65fa-47f7-9eb5-5fbf19cba33f","block_type":"box","text":"and realization of a company’s strategy, purpose and culture. These constructs are interdependent","page_number":290,"box":{"x":116,"y":102,"width":738,"height":13}},{"id":"0f4bed25-7b9f-4ea0-b04d-cc86e0dd9dcc","block_type":"box","text":"and, when aligned, can better position a company to be resilient in the face of a changing business","page_number":290,"box":{"x":116,"y":118,"width":739,"height":12}},{"id":"304766f0-2af1-4da0-b5f0-26d94d418563","block_type":"box","text":"environment, help reduce the risks of corporate or employee misconduct, and attract and retain the","page_number":290,"box":{"x":116,"y":134,"width":740,"height":12}},{"id":"94cc50e5-1ffb-4fa6-9992-e3cfd9eafa44","block_type":"box","text":"caliber of workers necessary to deliver financial performance over time.","page_number":290,"box":{"x":116,"y":149,"width":535,"height":12}},{"id":"485e3110-4e21-4638-857d-591417580ce5","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies","page_number":290,"box":{"x":117,"y":178,"width":754,"height":12}},{"id":"9cdb77f6-8fe4-4ca6-82e1-7116f49dea1f","block_type":"box","text":"and procedures are in place to help management meet its strategic objectives within an agreed risk","page_number":290,"box":{"x":116,"y":194,"width":742,"height":12}},{"id":"520f803a-fc07-42bf-adab-1621ae322621","block_type":"box","text":"tolerance.","page_number":290,"box":{"x":116,"y":210,"width":78,"height":9}},{"id":"4f174e61-452d-4112-a187-3ff02aed80d3","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the","page_number":290,"box":{"x":116,"y":239,"width":739,"height":12}},{"id":"304d59f2-1128-49e3-8659-060376e99145","block_type":"box","text":"chief executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the","page_number":290,"box":{"x":116,"y":254,"width":704,"height":12}},{"id":"defcc899-7c8c-45bf-a7f6-d90bbb459051","block_type":"box","text":"performance of the CEO and other key executives, determining executive compensation, ensuring a","page_number":290,"box":{"x":117,"y":270,"width":747,"height":12}},{"id":"29150f0e-c50c-4651-a03c-fb11ff1ebbb2","block_type":"box","text":"rigorous audit, overseeing strategy execution and risk management and engaging with shareholders,","page_number":290,"box":{"x":117,"y":285,"width":753,"height":12}},{"id":"53d7b7d2-345b-4ef8-b3be-11498f2e15b6","block_type":"box","text":"and other stakeholders, as necessary.","page_number":290,"box":{"x":116,"y":301,"width":289,"height":12}},{"id":"7db6f036-3bd7-446a-ad45-e79a2fa2007f","block_type":"box","text":"Composition and effectiveness","page_number":290,"box":{"x":116,"y":330,"width":253,"height":12}},{"id":"b510506c-2fa8-4c8a-8894-a726b83bcb42","block_type":"box","text":"Appointment process","page_number":290,"box":{"x":116,"y":359,"width":177,"height":12}},{"id":"e8ff46df-10b7-4d05-9f64-9275ab20a229","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to","page_number":290,"box":{"x":116,"y":389,"width":708,"height":12}},{"id":"cc246a9e-3032-43ca-9772-5fd0a211ea10","block_type":"box","text":"ensuring the board is composed of directors with the appropriate mix of skills and experience.","page_number":290,"box":{"x":116,"y":404,"width":700,"height":12}},{"id":"deeb7ad5-bf4b-4fe1-ac6d-caa706d2287a","block_type":"box","text":"Generally, the board or a sub-committee determines the general criteria given the company’s","page_number":290,"box":{"x":117,"y":420,"width":695,"height":12}},{"id":"516ca82b-feb3-4da3-8483-379622e89f2e","block_type":"box","text":"circumstances (e.g., sector, maturity, geographic footprint) and any additional criteria for a specific role","page_number":290,"box":{"x":116,"y":435,"width":767,"height":12}},{"id":"65f2f700-e83c-4887-a53c-94dde2b8555e","block_type":"box","text":"being filled (e.g., financial expertise, industry track record). To inform the process, we encourage","page_number":290,"box":{"x":117,"y":451,"width":721,"height":12}},{"id":"1249a50b-cbd4-4530-acae-87633cc32e37","block_type":"box","text":"companies to review the skills and experience of incumbent directors to identify any gaps and whether","page_number":290,"box":{"x":116,"y":466,"width":764,"height":12}},{"id":"ca383674-d1ad-4cd4-9d96-ef6953f4767b","block_type":"box","text":"the skills and experience of a director candidate would be additive. We welcome disclosures that","page_number":290,"box":{"x":116,"y":482,"width":722,"height":12}},{"id":"f5a2cfaf-3089-47d3-bba4-c067d345bdc6","block_type":"box","text":"explain how the board considered different skills and experience to ensure that the directors","page_number":290,"box":{"x":116,"y":497,"width":687,"height":12}},{"id":"f0ac54b0-0b91-4352-8145-eee7d09faeec","block_type":"box","text":"collectively can be effective in fulfilling their responsibilities. We assess a company’s board","page_number":290,"box":{"x":116,"y":513,"width":678,"height":12}},{"id":"79965fde-4252-448e-b349-b1e9a1d6f5fa","block_type":"box","text":"composition against that of its peer group and local market requirements.","page_number":290,"box":{"x":116,"y":528,"width":548,"height":12}},{"id":"70ced754-f204-47eb-8c06-825a4c478685","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any","page_number":290,"box":{"x":116,"y":558,"width":714,"height":12}},{"id":"f96559f9-8e3f-4761-9746-b98519453f80","block_type":"box","text":"particular board composition in our engagements or voting but seek to understand how well placed a","page_number":290,"box":{"x":117,"y":573,"width":751,"height":12}},{"id":"08811cc2-d9dd-4c01-a5ac-8533f99582bd","block_type":"box","text":"board is to act in investors’ interests. We may vote against the election of the most senior independent","page_number":290,"box":{"x":117,"y":589,"width":764,"height":12}},{"id":"5052414a-b443-4ca5-909c-137767309058","block_type":"box","text":"director, or the chair of the relevant committee, where a company has not demonstrated it has an","page_number":290,"box":{"x":116,"y":604,"width":726,"height":12}},{"id":"f042a831-0e6b-438a-b80e-11c7130e0ddb","block_type":"box","text":"appointment process that results in a high functioning board with the appropriate complement of skills","page_number":290,"box":{"x":116,"y":620,"width":759,"height":12}},{"id":"c1abc383-11d9-49c2-aa0b-22aca13d86d3","block_type":"box","text":"and experience amongst the directors to support strong financial performance over time. We may vote","page_number":290,"box":{"x":116,"y":635,"width":764,"height":12}},{"id":"bcc761d4-a164-4291-a9af-aa766461730b","block_type":"box","text":"against newly nominated directors who do not seem to have the appropriate skills or experience to","page_number":290,"box":{"x":116,"y":651,"width":736,"height":12}},{"id":"e98aaa9a-a066-42f1-af7c-987c5a99dfa3","block_type":"box","text":"contribute to the board’s effectiveness.","page_number":290,"box":{"x":116,"y":666,"width":286,"height":10}},{"id":"a7fe7c45-01ac-4ff2-9fb4-4fc59c0f2f39","block_type":"box","text":"Independence","page_number":290,"box":{"x":116,"y":696,"width":113,"height":11}},{"id":"e93ae3fd-3cbe-446a-86a2-5b6a8c855224","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (e.g.,","page_number":290,"box":{"x":117,"y":725,"width":700,"height":12}},{"id":"e3e96445-0e41-4ea4-b92d-9a835d869aab","block_type":"box","text":"government or employees) is of paramount importance to the protection of the interests of minority","page_number":290,"box":{"x":116,"y":740,"width":732,"height":12}},{"id":"2c58241a-5717-46af-9a76-2a9316361af9","block_type":"box","text":"shareholders such as BlackRock’s clients. We consider it good practice for at least half the directors to","page_number":290,"box":{"x":116,"y":756,"width":761,"height":12}},{"id":"f5161915-1a46-4105-b29f-aeba33300816","block_type":"box","text":"be independent and free from conflicts of interest or undue influence.","page_number":290,"box":{"x":117,"y":771,"width":510,"height":12}},{"id":"5705b2bb-f599-449b-a546-2fc8f3cc458e","block_type":"box","text":"7","page_number":290,"box":{"x":629,"y":771,"width":5,"height":6}},{"id":"90abe0e8-9931-4ce5-bfb2-49847aa0e2f3","block_type":"box","text":"This also helps to ensure that","page_number":290,"box":{"x":640,"y":771,"width":219,"height":12}},{"id":"6822414c-e57a-4c20-b7ab-f8604b89fdad","block_type":"box","text":"board committees are composed of a sufficient number of independent directors. Companies domiciled","page_number":290,"box":{"x":117,"y":787,"width":764,"height":12}},{"id":"64f97f81-4a84-48fe-a5b2-480d1c4a6f32","block_type":"box","text":"in markets with a higher threshold for board independence should meet those local requirements.","page_number":290,"box":{"x":117,"y":802,"width":720,"height":12}},{"id":"9487ff7e-abf4-4e52-8f85-213ef4332c77","block_type":"box","text":"7","page_number":290,"box":{"x":143,"y":828,"width":4,"height":4}},{"id":"f1c1a37c-38af-40f7-a8bc-ef7a0c5ba79b","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":290,"box":{"x":170,"y":827,"width":659,"height":10}},{"id":"bd43bfab-0d36-4423-bdc2-03b326f30e2d","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":290,"box":{"x":170,"y":840,"width":659,"height":10}},{"id":"55ecfcd9-5a55-4d91-8684-86c3f3e55bc4","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which could, or","page_number":290,"box":{"x":170,"y":853,"width":702,"height":10}},{"id":"73aa5cc1-99ab-4ed6-abde-9e3ab03f835b","block_type":"box","text":"could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":290,"box":{"x":170,"y":866,"width":703,"height":10}},{"id":"f59d0e63-80ab-4d29-a7e6-009cba11bf95","block_type":"box","text":"and shareholders.","page_number":290,"box":{"x":170,"y":879,"width":106,"height":8}},{"id":"37c50cc0-e2f1-44ff-a8f8-28f0c2c56ad0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":290,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"08a32a08-2b8d-4214-a598-a2620db314d7","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":290,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"954a7e6e-1d03-4fab-9b62-a00387e5e08d","block_type":"box","text":"6","page_number":290,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"469d322c-00ef-44b6-8a84-e43ff6467d04","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":290,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f6239993-027f-4ad8-b993-57e7485d2089","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient","page_number":291,"box":{"x":116,"y":87,"width":756,"height":12}},{"id":"712226a4-074b-474d-94c5-6f1698abfaaa","block_type":"box","text":"balance of independence. We may also vote against the election of the chair of the committee","page_number":291,"box":{"x":117,"y":102,"width":701,"height":13}},{"id":"d28e9a33-70a8-44af-b7b6-d03013d8189e","block_type":"box","text":"responsible for board composition if this is a perennial issue.","page_number":291,"box":{"x":117,"y":118,"width":453,"height":12}},{"id":"90d3bdb3-4331-4f71-8f9d-f04c2fbc77d3","block_type":"box","text":"Independent board leadership","page_number":291,"box":{"x":116,"y":149,"width":245,"height":12}},{"id":"2d149112-347a-4f8b-88d3-61a49230265d","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to","page_number":291,"box":{"x":117,"y":180,"width":718,"height":12}},{"id":"8889895a-b68c-4013-a263-37218ddfbd60","block_type":"box","text":"independent board leadership. One is a non-executive, independent chair of the board who is","page_number":291,"box":{"x":117,"y":196,"width":697,"height":11}},{"id":"03ebef85-7106-468b-a61a-f3fa72f72685","block_type":"box","text":"responsible for leading the board in the effective exercise of its duties. The other is a lead or senior","page_number":291,"box":{"x":117,"y":211,"width":738,"height":12}},{"id":"1508a50d-5531-48f1-87ba-fe2df518c597","block_type":"box","text":"independent director, who is responsible for coordinating with the other non-executive directors and","page_number":291,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"1a073f59-7044-4a6b-9345-514a485671fa","block_type":"box","text":"working closely with the executive chair on the board agenda and other board procedures. In this case,","page_number":291,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"b822c9c4-10e6-402b-adc0-07d9b2569cc1","block_type":"box","text":"the executive chair and the lead independent director work together to ensure the board is effectively","page_number":291,"box":{"x":116,"y":258,"width":754,"height":12}},{"id":"c7aeb58e-1675-44af-bdd1-b289e15542fb","block_type":"box","text":"fulfilling its responsibilities. In our view, the independent leader of the board, and/or the chair of a","page_number":291,"box":{"x":116,"y":273,"width":723,"height":12}},{"id":"a26c92bb-3088-4727-a903-9a431096035c","block_type":"box","text":"relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":291,"box":{"x":117,"y":289,"width":727,"height":12}},{"id":"c91cd59a-648b-44ed-8fa0-150e6592b462","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board","page_number":291,"box":{"x":116,"y":304,"width":691,"height":12}},{"id":"eadc6524-b0be-4693-b886-fd04b11b4b0f","block_type":"box","text":"leadership model and how it serves the interests of shareholders.","page_number":291,"box":{"x":117,"y":320,"width":489,"height":12}},{"id":"4cce8605-c37b-46a3-a8c2-caa3db064eae","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if","page_number":291,"box":{"x":116,"y":351,"width":740,"height":12}},{"id":"d4049a66-270e-41ea-a32c-60a1437877c5","block_type":"box","text":"there is not an identified independent leader of the board with clear responsibilities for board","page_number":291,"box":{"x":116,"y":366,"width":689,"height":12}},{"id":"38c6b14e-f8e5-40a8-a027-feb2d2d407e7","block_type":"box","text":"performance. We may vote against the most senior independent director if the board has a policy of","page_number":291,"box":{"x":117,"y":382,"width":744,"height":12}},{"id":"a37e7161-ab53-4fc3-b7a0-2f32a7b09338","block_type":"box","text":"not engaging with shareholders.","page_number":291,"box":{"x":117,"y":397,"width":242,"height":12}},{"id":"96f04026-c99c-4f8f-ba2d-9cab74b1ad36","block_type":"box","text":"Tenure and succession","page_number":291,"box":{"x":118,"y":428,"width":189,"height":10}},{"id":"af35f619-e258-46ab-b679-3380d8e962bd","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be","page_number":291,"box":{"x":117,"y":459,"width":745,"height":12}},{"id":"2085b83b-7edf-4e6b-8500-a9d2993076cf","block_type":"box","text":"expected to serve, in line with market norms where those exist. We find it helpful when companies","page_number":291,"box":{"x":116,"y":475,"width":733,"height":12}},{"id":"6bf24853-4533-4d67-a9b2-d21bc8323cf2","block_type":"box","text":"disclose their approach to director tenure particularly around the contributions of directors who have","page_number":291,"box":{"x":116,"y":490,"width":745,"height":12}},{"id":"b50027e6-4d55-4cee-b0b4-6625c3ebaa83","block_type":"box","text":"served for longer periods than typically provided for under local practice. In our experience, long","page_number":291,"box":{"x":116,"y":506,"width":718,"height":12}},{"id":"72ed2b68-9e44-4c0c-b086-40566f5656d6","block_type":"box","text":"serving directors could become less independent given their long-term relationship with management","page_number":291,"box":{"x":116,"y":521,"width":755,"height":12}},{"id":"5fdefa77-b4c0-4b22-9a8f-234b9f208edc","block_type":"box","text":"and involvement in past board decisions.","page_number":291,"box":{"x":116,"y":537,"width":308,"height":12}},{"id":"f4a51608-d798-4f55-b33b-1806d5a113a9","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances","page_number":291,"box":{"x":116,"y":568,"width":756,"height":12}},{"id":"8f2ed7c3-6b0e-4799-8179-9d4d71902bc5","block_type":"box","text":"renewal through the regular introduction of directors with fresh perspectives and expertise with","page_number":291,"box":{"x":117,"y":583,"width":705,"height":12}},{"id":"5a0bdb83-24a1-4c23-836b-4f56d075d391","block_type":"box","text":"continuity through the retention of directors with long-term knowledge of the board and company.","page_number":291,"box":{"x":116,"y":599,"width":724,"height":12}},{"id":"53609473-d4c7-4864-b8b8-350f39f6f6a4","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate","page_number":291,"box":{"x":117,"y":630,"width":680,"height":12}},{"id":"8ca80257-7b30-4dd9-b2f2-e638a0ccdec5","block_type":"box","text":"governance best practices, we may vote against the election of the chair of the committee responsible","page_number":291,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"c0726a38-6504-41f4-94f6-38654bd448f1","block_type":"box","text":"for board composition if a company does not clearly disclose its approach to director tenure and board","page_number":291,"box":{"x":116,"y":661,"width":757,"height":12}},{"id":"1a526fc5-5e14-4ba0-ae57-241185cf7c93","block_type":"box","text":"renewal. We may vote against the election of directors who have served for more years than is typical","page_number":291,"box":{"x":117,"y":676,"width":754,"height":12}},{"id":"78a24f5b-997b-4118-9f80-d83f01efe420","block_type":"box","text":"in markets with specific guidance, where the case for their continued service is not evident.","page_number":291,"box":{"x":117,"y":692,"width":673,"height":12}},{"id":"3f8a901a-43a9-4334-87ae-eb41e3a69ff4","block_type":"box","text":"Capacity","page_number":291,"box":{"x":117,"y":723,"width":70,"height":12}},{"id":"4eecaa06-c659-438e-b112-ffdd84252047","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our","page_number":291,"box":{"x":116,"y":754,"width":753,"height":12}},{"id":"c374687d-4bf4-4b43-a785-dfb7c4149898","block_type":"box","text":"view, an effective board will assess the ability of its members to maintain an appropriate focus on","page_number":291,"box":{"x":116,"y":769,"width":720,"height":12}},{"id":"18c9429c-9a13-4d20-83af-a815b48844dd","block_type":"box","text":"board matters and the company taking into consideration competing responsibilities. We recognize that","page_number":291,"box":{"x":117,"y":785,"width":765,"height":12}},{"id":"d2d34e32-e5a2-407d-82da-eb5ec0a619a7","block_type":"box","text":"board leadership roles vary across markets in responsibilities and required time commitment but note","page_number":291,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"fc34ae46-007e-4d5a-acdf-1b4697387f3d","block_type":"box","text":"that they are generally more intensive than a standard directorship. We will take local norms and","page_number":291,"box":{"x":116,"y":816,"width":715,"height":12}},{"id":"3c3d5aa3-dbdb-47a0-af62-768ad36ec65a","block_type":"box","text":"practices into consideration when making our voting determinations across markets.","page_number":291,"box":{"x":117,"y":831,"width":628,"height":12}},{"id":"9aabe408-bf93-4ede-ab5e-f8cc22c47978","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively","page_number":291,"box":{"x":116,"y":862,"width":769,"height":12}},{"id":"e72276ac-7aaa-4fde-bcc2-b9f3b8ba67e8","block_type":"box","text":"fulfil their duties to the board and company.","page_number":291,"box":{"x":116,"y":878,"width":326,"height":12}},{"id":"56b1d061-ef45-49b7-b4da-26a70c619ec2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":291,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"7509e592-514b-42aa-887d-26c1f7d6184d","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":291,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"15de867a-9c5e-4617-9392-7d8845900dde","block_type":"box","text":"7","page_number":291,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"10654679-26f2-425f-b8a9-9d4a251648ce","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":291,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9b5974c3-ae23-46f4-b262-140acbdb18b6","block_type":"box","text":"Director elections","page_number":292,"box":{"x":116,"y":87,"width":147,"height":10}},{"id":"dcac3941-ec88-4a5e-ad48-f2bd866a88ca","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A","page_number":292,"box":{"x":117,"y":116,"width":720,"height":13}},{"id":"e2f9f945-2fee-485b-8907-9af46d5b5c0c","block_type":"box","text":"classified board structure","page_number":292,"box":{"x":116,"y":132,"width":186,"height":10}},{"id":"592cfec9-e0ea-4cbb-802d-170513278c12","block_type":"box","text":"8","page_number":292,"box":{"x":303,"y":132,"width":5,"height":6}},{"id":"cc904b6d-9d4c-4763-97ec-f3aad52de774","block_type":"box","text":"may be justified by a company when it needs consistency and stability","page_number":292,"box":{"x":309,"y":132,"width":530,"height":12}},{"id":"e705a7b7-7c73-4d48-bf57-a7776921feea","block_type":"box","text":"during a time of transition, or on the basis of its business model (e.g., a non-operating company such","page_number":292,"box":{"x":116,"y":147,"width":754,"height":13}},{"id":"0a2e123f-91fa-4350-bcdb-4f312d84d68b","block_type":"box","text":"as closed-end funds).","page_number":292,"box":{"x":116,"y":163,"width":165,"height":12}},{"id":"ec151afe-da3e-466e-a683-e415315810a2","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in","page_number":292,"box":{"x":116,"y":192,"width":746,"height":13}},{"id":"31c229c7-c927-4f60-889a-4649489270e8","block_type":"box","text":"bundled slates. We look to companies to provide sufficient information on each director standing for","page_number":292,"box":{"x":117,"y":208,"width":743,"height":12}},{"id":"3c79c656-1b37-4b95-8e7c-5606f150a694","block_type":"box","text":"election so that shareholders can assess their capabilities and suitability. We will generally not support","page_number":292,"box":{"x":116,"y":224,"width":765,"height":12}},{"id":"2b9af97f-e9b2-4c25-9835-50f8bcf44650","block_type":"box","text":"the election of directors whose names and biographical details have not been disclosed sufficiently in","page_number":292,"box":{"x":116,"y":239,"width":755,"height":12}},{"id":"50104182-5f66-41d1-b5a6-d057ad58eeac","block_type":"box","text":"advance of the shareholder meeting.","page_number":292,"box":{"x":116,"y":254,"width":278,"height":13}},{"id":"c73bbd9a-dca2-47cd-a070-a47f88059301","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at","page_number":292,"box":{"x":117,"y":284,"width":746,"height":12}},{"id":"aabdf9bf-72ec-4a1b-854f-ed73fdae8760","block_type":"box","text":"the shareholder meeting. Where a company’s practices differ, we look to the board to provide a","page_number":292,"box":{"x":116,"y":299,"width":712,"height":13}},{"id":"18e81428-fe07-40e5-8230-48b47f8b7467","block_type":"box","text":"detailed explanation as to how its approach best serves investors’ interests.","page_number":292,"box":{"x":116,"y":315,"width":567,"height":12}},{"id":"1cd48b66-7ac6-416b-a517-ba1b3973f0b3","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of","page_number":292,"box":{"x":116,"y":344,"width":710,"height":12}},{"id":"7fff6777-668c-4475-98d7-9bc395d77b0c","block_type":"box","text":"directors and/or a simple majority vote standard for director elections. We may vote against all the","page_number":292,"box":{"x":116,"y":360,"width":732,"height":12}},{"id":"0ac8bf77-1dd3-4d24-a373-e27ba87f1379","block_type":"box","text":"directors standing for election as part of a single slate if we have concerns about the profile or","page_number":292,"box":{"x":116,"y":375,"width":701,"height":12}},{"id":"1048f4cf-6e8a-4643-8e59-a7458d763083","block_type":"box","text":"performance of an individual director.","page_number":292,"box":{"x":117,"y":391,"width":280,"height":12}},{"id":"2865a9b9-f670-49d8-91aa-ec5c8dc69ba4","block_type":"box","text":"Committees","page_number":292,"box":{"x":117,"y":420,"width":100,"height":10}},{"id":"f848779c-e306-44f5-a2dc-cf106b213aaa","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and","page_number":292,"box":{"x":117,"y":450,"width":757,"height":12}},{"id":"b02880ee-5073-43a1-b258-391c3cea42bd","block_type":"box","text":"risk, governance and human capital, and executive compensation, amongst other matters. We do not","page_number":292,"box":{"x":117,"y":465,"width":756,"height":12}},{"id":"4eb8c6da-f265-47b4-a1a8-cdd948dd16c8","block_type":"box","text":"prescribe to companies what committees they should establish, but we seek to understand the board’s","page_number":292,"box":{"x":117,"y":481,"width":765,"height":12}},{"id":"79c731ee-f469-4c63-b8ab-78348af5c8d7","block_type":"box","text":"rationale for the committee structure it determines is appropriate. We note that, in some markets,","page_number":292,"box":{"x":117,"y":496,"width":723,"height":12}},{"id":"9e33dfa2-23fd-4979-9e4b-3be671086ff8","block_type":"box","text":"regulation requires such committees. The responsibilities of each committee should be clear, and the","page_number":292,"box":{"x":117,"y":512,"width":754,"height":12}},{"id":"985755a1-b630-4e6b-a071-8d7dc3306ed5","block_type":"box","text":"board should ensure that all critical matters are assigned either to the full board or to one of the","page_number":292,"box":{"x":117,"y":527,"width":711,"height":12}},{"id":"8245c63a-c263-45d6-9f9f-a7c19ff6adb1","block_type":"box","text":"committees. It is helpful to investor understanding when the board discloses the structure,","page_number":292,"box":{"x":116,"y":543,"width":672,"height":12}},{"id":"38b5a26e-f9f8-413b-8146-f6d644e78fbc","block_type":"box","text":"membership, proportion of independent directors, and responsibilities of each committee. The","page_number":292,"box":{"x":117,"y":558,"width":700,"height":12}},{"id":"94249260-862f-4de8-9f2d-a15eee3c76a1","block_type":"box","text":"responsibilities we typically see assigned to the three most common committees include:","page_number":292,"box":{"x":117,"y":574,"width":662,"height":12}},{"id":"bb01f378-9a90-4673-b71d-0c49dba6a8ca","block_type":"box","text":"• Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management","page_number":292,"box":{"x":117,"y":596,"width":752,"height":12}},{"id":"6a22561b-8b99-4c45-93ae-4aa3a5027783","block_type":"box","text":"and compliance with legal and regulatory requirements; may also play an oversight role in relation","page_number":292,"box":{"x":150,"y":612,"width":731,"height":12}},{"id":"b4ac8b77-f123-4c1b-ac4c-4a17481aaf90","block_type":"box","text":"to the internal audit function and whistleblowing mechanisms.","page_number":292,"box":{"x":150,"y":627,"width":460,"height":12}},{"id":"817e2596-bfd2-4769-aa82-2e5373383355","block_type":"box","text":"• Nominating, governance and human capital – oversight responsibilities for corporate governance","page_number":292,"box":{"x":117,"y":650,"width":756,"height":12}},{"id":"baed7bfe-06cd-4db7-8e91-954375462e96","block_type":"box","text":"principles and practices of the company, including the periodic review of board performance;","page_number":292,"box":{"x":150,"y":665,"width":684,"height":12}},{"id":"4b3bf82d-8bb8-41a7-9df0-271bf22c632c","block_type":"box","text":"responsibility for succession planning for CEO and key board roles, as well as the director","page_number":292,"box":{"x":150,"y":681,"width":667,"height":12}},{"id":"a7cd44b6-7906-4fda-a0d5-1083ad6dc2c3","block_type":"box","text":"appointment process; may also have oversight responsibilities for human capital management","page_number":292,"box":{"x":150,"y":696,"width":698,"height":12}},{"id":"30ca3d30-28d9-4659-a83d-71d7adaf1103","block_type":"box","text":"strategies, including corporate culture and purpose.","page_number":292,"box":{"x":150,"y":712,"width":381,"height":12}},{"id":"c89375eb-1330-4569-b2d7-fcc38dfad270","block_type":"box","text":"• Executive compensation – determines the compensation policies and programs for the CEO and","page_number":292,"box":{"x":117,"y":734,"width":749,"height":12}},{"id":"f6ade44f-1d4a-4c96-b506-b4367ec14900","block_type":"box","text":"other executive officers, approves annual awards and payments under the policies; may also have","page_number":292,"box":{"x":150,"y":750,"width":730,"height":12}},{"id":"e68d4c41-60a4-4f89-933a-0f1561cab1af","block_type":"box","text":"oversight responsibilities for firm-wide compensation policies.","page_number":292,"box":{"x":150,"y":765,"width":453,"height":12}},{"id":"81f6f340-0de3-44f2-a3d7-60de2b85d1fb","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee","page_number":292,"box":{"x":116,"y":795,"width":760,"height":12}},{"id":"b193087b-f145-4cef-9585-2c1a49b4392c","block_type":"box","text":"members to convey concerns about how a committee has undertaken its responsibilities. We may vote","page_number":292,"box":{"x":117,"y":810,"width":762,"height":12}},{"id":"d19dff56-513e-4ef9-8516-1ce22733f56b","block_type":"box","text":"against the election of the most senior non-executive director if there is not a clearly disclosed","page_number":292,"box":{"x":116,"y":826,"width":702,"height":12}},{"id":"dc43670a-15a3-4158-95db-2d65c6c0323b","block_type":"box","text":"approach to board committees.","page_number":292,"box":{"x":116,"y":841,"width":236,"height":12}},{"id":"f5e71779-bd9b-4416-a347-1b9516339e27","block_type":"box","text":"8","page_number":292,"box":{"x":143,"y":867,"width":4,"height":4}},{"id":"d5cfc0ce-3b64-4bfe-9d18-937732376ec8","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":292,"box":{"x":170,"y":866,"width":673,"height":10}},{"id":"3870f31f-8209-49b0-a910-8bb6a3284120","block_type":"box","text":"directors stands for election in any one year.","page_number":292,"box":{"x":170,"y":879,"width":262,"height":10}},{"id":"5ecc9dea-4735-4372-ac0c-bd79c617515b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":292,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"914f64be-397b-4b12-a1be-c4a64e32f236","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":292,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"0bcbe555-9b23-4114-b14c-669bb13d4747","block_type":"box","text":"8","page_number":292,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"143f02c7-0a71-409a-88b7-1e55a54c4019","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":292,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3cd58434-b5ea-43f7-aded-8d29cf0b8aef","block_type":"box","text":"Board and director evaluation","page_number":293,"box":{"x":116,"y":87,"width":243,"height":10}},{"id":"ea686b03-b65b-4116-83d3-6569a39e401d","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the","page_number":293,"box":{"x":116,"y":119,"width":729,"height":12}},{"id":"f3797b4b-59e1-4192-85ea-c476d857cb85","block_type":"box","text":"board, the committees, the chair and individual directors. Periodically, this review could be undertaken","page_number":293,"box":{"x":117,"y":134,"width":762,"height":12}},{"id":"6c3ac30d-e77c-40d8-975e-19e0ac49c3a2","block_type":"box","text":"by an independent third party able to bring objective perspectives to the board on governance and","page_number":293,"box":{"x":117,"y":150,"width":732,"height":12}},{"id":"ea861260-3faa-42b9-bd3c-bc21cd77a738","block_type":"box","text":"performance. We encourage companies to disclose their approach to and the objectives of","page_number":293,"box":{"x":117,"y":165,"width":677,"height":12}},{"id":"9acf5c93-5849-4da9-8061-8b349ec7e346","block_type":"box","text":"evaluations, including any changes made to the board’s approach as a result.","page_number":293,"box":{"x":116,"y":181,"width":581,"height":12}},{"id":"35ac7031-b001-4697-b0b0-34d9b6439f6a","block_type":"box","text":"Access to independent advice","page_number":293,"box":{"x":116,"y":213,"width":246,"height":11}},{"id":"2b057f50-bf8f-4bd1-9162-add091ac16a0","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they","page_number":293,"box":{"x":116,"y":244,"width":723,"height":12}},{"id":"0680046a-cc21-483d-8071-7470e8908075","block_type":"box","text":"should have access to independent advice. In certain circumstances, it may be helpful to boards to","page_number":293,"box":{"x":116,"y":260,"width":738,"height":12}},{"id":"c2709587-feeb-4b65-9020-f189df1d4974","block_type":"box","text":"retain independent third parties to advise on critical matters. These might include new industry","page_number":293,"box":{"x":117,"y":275,"width":703,"height":12}},{"id":"2cae06e2-d48b-4e71-87c3-d27aefe66b3e","block_type":"box","text":"developments such as emergent and disruptive technology, operating events with material","page_number":293,"box":{"x":116,"y":291,"width":676,"height":12}},{"id":"1d3c188b-aa57-4568-9b9e-780db08e1b39","block_type":"box","text":"consequences for the company’s reputation and/or performance, or significant transactions. Board","page_number":293,"box":{"x":116,"y":306,"width":735,"height":12}},{"id":"f98100af-9e9d-4995-af11-b7e566b62b47","block_type":"box","text":"committees may similarly retain third parties to advise them on specialist matters such as audit,","page_number":293,"box":{"x":116,"y":322,"width":713,"height":12}},{"id":"91f0b325-47f0-4a9c-8866-a193cb936a0a","block_type":"box","text":"compensation and succession planning.","page_number":293,"box":{"x":116,"y":337,"width":303,"height":12}},{"id":"3a511880-a987-45cd-be69-642e8d846c69","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":293,"box":{"x":382,"y":369,"width":241,"height":9}},{"id":"a5e8cc1f-de79-4bd0-8d57-d26c08dd34e6","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to","page_number":293,"box":{"x":117,"y":401,"width":760,"height":12}},{"id":"eeb310ee-02a7-4b76-885e-4d750aa9c1ec","block_type":"box","text":"recruit, retain and reward the caliber of executive management necessary to lead and operate the","page_number":293,"box":{"x":117,"y":416,"width":730,"height":12}},{"id":"30bf7313-444a-4cb1-b181-eec152fc58a8","block_type":"box","text":"company to deliver superior financial returns over time. We focus on alignment between variable pay","page_number":293,"box":{"x":116,"y":432,"width":753,"height":12}},{"id":"e4d27804-4cf1-4150-92f5-2809b88b0734","block_type":"box","text":"and a company’s financial performance.","page_number":293,"box":{"x":116,"y":447,"width":302,"height":12}},{"id":"3d7bb4a3-2407-4b55-9a89-004f3f21e6bc","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus","page_number":293,"box":{"x":117,"y":479,"width":751,"height":12}},{"id":"7444d22e-0495-4934-ae2c-76787a7d1056","block_type":"box","text":"that rewards performance against short-term metrics, incentives—most often share-based- that reward","page_number":293,"box":{"x":116,"y":494,"width":768,"height":12}},{"id":"a9fc3fce-4983-4aa6-9b4b-e6b448c75c45","block_type":"box","text":"performance against long-term metrics, and pensions and benefits. In our observation, base salary,","page_number":293,"box":{"x":117,"y":510,"width":742,"height":12}},{"id":"a2ad4738-3766-459d-8fb7-fb63e088dd6b","block_type":"box","text":"pensions and benefits are largely set relative to market norms and benchmarks. The annual bonus and","page_number":293,"box":{"x":117,"y":525,"width":769,"height":12}},{"id":"9f7a8fa7-c7a8-48f6-8be7-c209c57a0348","block_type":"box","text":"share-based incentive, or variable pay plans, tend to be tailored to the company, its sector and long","page_number":293,"box":{"x":116,"y":541,"width":744,"height":12}},{"id":"6bb04577-4423-42de-b6bf-3b7f4af32bb3","block_type":"box","text":"term strategy, as well as the individuals the board is seeking to recruit and motivate.","page_number":293,"box":{"x":116,"y":557,"width":629,"height":11}},{"id":"f9f1d269-3592-4500-9a9f-86d1e17d3f64","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a","page_number":293,"box":{"x":117,"y":588,"width":693,"height":12}},{"id":"3d7bccc2-2362-4606-ac69-059f15117649","block_type":"box","text":"company’s approach to executive compensation on a case-by-case basis. We rely on companies","page_number":293,"box":{"x":116,"y":604,"width":726,"height":12}},{"id":"35411623-e2bd-4625-bb63-81b3f135d4c0","block_type":"box","text":"providing sufficient quantitative and qualitative information in their disclosures to enable shareholders","page_number":293,"box":{"x":117,"y":619,"width":754,"height":12}},{"id":"8108a579-6a20-4050-bebc-e7fe5febf6dd","block_type":"box","text":"to understand the compensation arrangements and assess the alignment with investors’ interests.","page_number":293,"box":{"x":116,"y":635,"width":732,"height":12}},{"id":"1ae2fc8e-f593-482f-a00d-e05a71286db6","block_type":"box","text":"Features we look for in compensation arrangements include:","page_number":293,"box":{"x":117,"y":650,"width":454,"height":12}},{"id":"12eb3927-8e16-4b99-9f07-89e227391648","block_type":"box","text":"• Fixed pay components, including base salary, benefits and prerequisites that are appropriate in","page_number":293,"box":{"x":117,"y":682,"width":739,"height":12}},{"id":"c44a58fe-1635-44a6-8a08-9a6db9486b4f","block_type":"box","text":"the context of the company’s size, sector and market.","page_number":293,"box":{"x":150,"y":697,"width":396,"height":12}},{"id":"df147cdc-c953-49ef-b8a3-0042a7236c59","block_type":"box","text":"• Variable pay subject to performance metrics that are closely linked to the company’s short- and","page_number":293,"box":{"x":117,"y":721,"width":739,"height":12}},{"id":"7d34e436-d634-4363-8cb1-aff20d3b9893","block_type":"box","text":"long-term strategic objectives.","page_number":293,"box":{"x":150,"y":737,"width":222,"height":12}},{"id":"03a60ef0-f8ac-4ec6-b26f-30f5e314b99d","block_type":"box","text":"• Long-term incentives that motivate sustained performance across a multi-year period.","page_number":293,"box":{"x":117,"y":760,"width":667,"height":12}},{"id":"40b93c09-f866-4f2f-bef2-954b53724964","block_type":"box","text":"• A balance between fixed and variable pay, short- and long-term incentives, and specific","page_number":293,"box":{"x":117,"y":784,"width":682,"height":12}},{"id":"e78e0ba4-5f3a-46ac-9823-d43f49805934","block_type":"box","text":"instruments (cash and equity awards) that promotes pay program durability and seldom","page_number":293,"box":{"x":150,"y":799,"width":649,"height":12}},{"id":"ad9a7098-08ef-4c14-89df-9847b6d3df80","block_type":"box","text":"necessitates one-off, discretionary payments.","page_number":293,"box":{"x":150,"y":815,"width":336,"height":12}},{"id":"9fad98cb-1918-4437-a69e-4529a973ded1","block_type":"box","text":"• Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":293,"box":{"x":117,"y":838,"width":720,"height":12}},{"id":"989dbd48-bc81-4ff3-9ef3-900639007310","block_type":"box","text":"• Board discretion, if allowed within the variable pay arrangements, to be used sparingly,","page_number":293,"box":{"x":117,"y":862,"width":683,"height":12}},{"id":"1119cbe8-dc25-4cad-9c42-21919d183f18","block_type":"box","text":"responsibly and transparently.","page_number":293,"box":{"x":150,"y":877,"width":228,"height":12}},{"id":"ac6360c5-380c-417f-8884-10a7131de49d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":293,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"90ab31c4-67d5-42c6-b4e6-db777d616515","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":293,"box":{"x":539,"y":909,"width":324,"height":12}},{"id":"25fa9d2e-2202-4112-9730-8675ad615c18","block_type":"box","text":"9","page_number":293,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"894c9877-832c-415b-af5e-c3cc829382c7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":293,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"61630433-93fc-4eaa-93af-1173e00cc0b3","block_type":"box","text":"• A requirement, that participants in long-term share-based incentive plans build a meaningful","page_number":294,"box":{"x":117,"y":87,"width":720,"height":12}},{"id":"3f681ee1-a147-4eaf-8339-511ca34d1382","block_type":"box","text":"shareholding in the company within a defined time period, as determined by the board or relevant","page_number":294,"box":{"x":150,"y":102,"width":727,"height":13}},{"id":"96dee20d-c6c9-42d0-910c-ee166ca4ab64","block_type":"box","text":"board committee.","page_number":294,"box":{"x":150,"y":118,"width":134,"height":10}},{"id":"62c1ef48-bdf4-4ede-8031-c6e41b9c2e06","block_type":"box","text":"• Change of control provisions that appropriately balance the interests of executives and","page_number":294,"box":{"x":117,"y":142,"width":681,"height":12}},{"id":"6eb4f428-921c-460e-901d-05bd1b6fffda","block_type":"box","text":"shareholders.","page_number":294,"box":{"x":150,"y":157,"width":106,"height":10}},{"id":"f152e0ad-6239-4e56-904e-6bdae04d3781","block_type":"box","text":"• Clawback or malus provisions that allow the company to recoup or hold back variable","page_number":294,"box":{"x":117,"y":181,"width":671,"height":12}},{"id":"04c34f0b-9912-4355-b263-2621f2ed01b0","block_type":"box","text":"compensation from individuals whose awards were based on fraudulent activities, misstated","page_number":294,"box":{"x":150,"y":196,"width":688,"height":12}},{"id":"e9ca1026-b5e7-4595-a234-a30cdb883388","block_type":"box","text":"financial reports, or executive misconduct.","page_number":294,"box":{"x":149,"y":212,"width":318,"height":12}},{"id":"84de4285-ca99-4dd3-8b02-62355aaff1c3","block_type":"box","text":"• Severance arrangements that protect the company’s interests but do not cost more than is","page_number":294,"box":{"x":117,"y":235,"width":709,"height":12}},{"id":"d5b95ee7-fe94-488d-b026-0509c667f667","block_type":"box","text":"contractual.","page_number":294,"box":{"x":150,"y":251,"width":91,"height":9}},{"id":"33bc982b-3733-49ef-bcf0-68332bbe2daa","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or","page_number":294,"box":{"x":116,"y":282,"width":757,"height":12}},{"id":"f96538a7-305e-404f-9901-3a8a099a7c44","block_type":"box","text":"plans, or approve the compensation report where we do not see alignment between executive","page_number":294,"box":{"x":117,"y":298,"width":701,"height":12}},{"id":"0a8ae220-eeb8-40d0-a66b-b7bdb1c1374c","block_type":"box","text":"compensation arrangements and our clients’ financial interests. When there is not an alternative, or","page_number":294,"box":{"x":116,"y":313,"width":742,"height":12}},{"id":"846b3e54-b24a-4856-a30d-b55c97cde64f","block_type":"box","text":"where there have been multi-year issues with compensation misaligned with performance, we may","page_number":294,"box":{"x":116,"y":329,"width":738,"height":12}},{"id":"dabca890-706e-41c3-b99d-4c8ee11bea07","block_type":"box","text":"vote against the election of the chair of the responsible committee, or the most senior independent","page_number":294,"box":{"x":116,"y":344,"width":735,"height":12}},{"id":"12c5b6c1-e2f2-41d2-9092-3462a45be2fc","block_type":"box","text":"director.","page_number":294,"box":{"x":116,"y":360,"width":65,"height":9}},{"id":"65b16352-0edc-4d3d-a475-6f59531f5dfa","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":294,"box":{"x":314,"y":399,"width":377,"height":10}},{"id":"003bee11-1bed-444a-b74e-b7a4b89be0d1","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a","page_number":294,"box":{"x":117,"y":431,"width":712,"height":12}},{"id":"fa698f02-87a2-44a6-a43d-1a43d209b497","block_type":"box","text":"combination of the two. Some companies also pay additional fees for service on board committees or","page_number":294,"box":{"x":116,"y":446,"width":757,"height":13}},{"id":"1ca1b3e3-c4d8-44d7-ad64-2b8171cd9261","block_type":"box","text":"in board leadership roles. We do not support non-executive directors participating in performance","page_number":294,"box":{"x":117,"y":462,"width":726,"height":12}},{"id":"4ef1bdf5-3f9a-4bae-9d09-305e4387948c","block_type":"box","text":"based incentive plans as doing so may create a conflict of interest and undermine their independence","page_number":294,"box":{"x":117,"y":477,"width":759,"height":13}},{"id":"81a69ee0-e7ff-43f0-84dd-1f6f6f258e7f","block_type":"box","text":"from management, whom they oversee.","page_number":294,"box":{"x":116,"y":493,"width":301,"height":12}},{"id":"42413855-baef-4c01-8e62-de44059af7ce","block_type":"box","text":"CAPITAL STRUCTURE","page_number":294,"box":{"x":410,"y":533,"width":185,"height":9}},{"id":"3e81c16f-23e3-4878-9fa2-48b429df89bf","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that","page_number":294,"box":{"x":117,"y":564,"width":765,"height":12}},{"id":"a58e02e9-f543-4cf3-b179-51df34b37d22","block_type":"box","text":"achieves appropriate capital allocation in support of long-term financial resilience.","page_number":294,"box":{"x":116,"y":580,"width":610,"height":12}},{"id":"9f5f4d51-f9c5-44c4-b9b9-65bee2b0edf7","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why","page_number":294,"box":{"x":116,"y":611,"width":743,"height":12}},{"id":"ebd9780e-972f-4dee-be47-59c780bd3717","block_type":"box","text":"they view these practices to be aligned with shareholders’ interests. We may vote against management","page_number":294,"box":{"x":116,"y":627,"width":772,"height":12}},{"id":"9d8a02fa-beba-4ce5-bcac-0b695e37d15d","block_type":"box","text":"proposals seeking capital-related authorities, or the election of the most senior independent director, if","page_number":294,"box":{"x":117,"y":642,"width":761,"height":12}},{"id":"ca658c46-0c96-4d4e-a371-06b4b577fd7f","block_type":"box","text":"we have concerns about a company’s approach. We may also support a shareholder proposal seeking","page_number":294,"box":{"x":116,"y":658,"width":768,"height":12}},{"id":"7a5bbe2b-0b7f-4df3-b859-8665a03daa2a","block_type":"box","text":"conversion of shares with differentiated voting rights to a one-share, one-vote standard.","page_number":294,"box":{"x":116,"y":673,"width":649,"height":12}},{"id":"37af1a7d-b9fe-4f77-818b-4977987ffd12","block_type":"box","text":"Share","page_number":294,"box":{"x":116,"y":705,"width":46,"height":9}},{"id":"612ed47a-7532-4030-be17-85e43ffd9a4b","block_type":"box","text":"issuance","page_number":294,"box":{"x":168,"y":705,"width":71,"height":9}},{"id":"cc423250-fcea-4565-a243-e271a8ae8847","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will","page_number":294,"box":{"x":116,"y":736,"width":735,"height":13}},{"id":"79ebff29-b964-4df6-a7f4-d7322a4d9934","block_type":"box","text":"generally support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent","page_number":294,"box":{"x":116,"y":752,"width":763,"height":12}},{"id":"16aa21c9-50ec-4de2-9906-343363c74173","block_type":"box","text":"pre-emptive rights. We consider it good practice for companies to seek regular approval of these","page_number":294,"box":{"x":117,"y":767,"width":715,"height":13}},{"id":"c41db2e5-77da-49b0-a0d8-a702ada7a00b","block_type":"box","text":"authorities to allow shareholders to take into consideration how prior authorities were used, as well as","page_number":294,"box":{"x":116,"y":783,"width":754,"height":12}},{"id":"9b5d7c39-2f4f-4d80-9d9b-91cf32dae86b","block_type":"box","text":"the current circumstances of the company and the market environment.","page_number":294,"box":{"x":116,"y":798,"width":530,"height":13}},{"id":"3209109f-79de-425b-b767-8c7bccc83c10","block_type":"box","text":"Share buybacks","page_number":294,"box":{"x":116,"y":830,"width":133,"height":12}},{"id":"649371a1-ffd3-4192-8897-ea903bd1076c","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management","page_number":294,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"263e6fd4-068a-4f07-a85e-0cb763569cf6","block_type":"box","text":"strategy and management’s determination of the appropriate balance between investment that","page_number":294,"box":{"x":116,"y":877,"width":706,"height":12}},{"id":"f6373c4d-d111-40af-a1bd-c274eef1b13f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":294,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"a764b0ed-d92e-4d9c-9fc4-52c5b0272ccd","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":294,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"f4a3a728-9c8c-41cb-90a4-dc1b73b53e45","block_type":"box","text":"10","page_number":294,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"7463029d-1bf4-4831-89ea-cb8bea9b03bc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":294,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ae007e24-fec8-4a0d-851b-a6a78e89c847","block_type":"box","text":"supports the long-term growth of the company and returning cash to investors. We also take into","page_number":295,"box":{"x":116,"y":87,"width":721,"height":12}},{"id":"4555dacb-bbdf-4d7b-893f-66a8eb2afbf4","block_type":"box","text":"consideration the effect of a buyback program on the company’s balance sheet and executive","page_number":295,"box":{"x":116,"y":102,"width":701,"height":13}},{"id":"9bed835f-2f68-44a5-be94-8e16f6f7b77a","block_type":"box","text":"compensation arrangements and the price at which shares are repurchased relative to market price.","page_number":295,"box":{"x":116,"y":118,"width":748,"height":12}},{"id":"186abfd1-e860-4079-a8dd-e8b7d7d83462","block_type":"box","text":"We consider it good practice for companies to seek regular approval of these authorities to allow","page_number":295,"box":{"x":116,"y":134,"width":721,"height":12}},{"id":"d0092d62-d8e0-4a89-8feb-9b30bd00866e","block_type":"box","text":"shareholders to take into consideration how prior authorities were used, as well as the current","page_number":295,"box":{"x":116,"y":149,"width":700,"height":12}},{"id":"05b1aede-84aa-476a-8bda-cbbaeac35b93","block_type":"box","text":"circumstances of the company and the market environment.","page_number":295,"box":{"x":116,"y":165,"width":451,"height":12}},{"id":"030232ad-1a38-446e-b279-c9cffa4b2a72","block_type":"box","text":"Dividends","page_number":295,"box":{"x":117,"y":193,"width":84,"height":10}},{"id":"31f71880-5701-49cd-9604-e804b86de940","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further","page_number":295,"box":{"x":116,"y":222,"width":752,"height":12}},{"id":"01612cb5-8030-4177-a487-9b90afd8975e","block_type":"box","text":"clarification where a proposed dividend appears out of line with the company’s financial position.","page_number":295,"box":{"x":116,"y":238,"width":720,"height":12}},{"id":"9a61116c-b07c-4998-9501-aa380f4bca09","block_type":"box","text":"Differentiated voting rights","page_number":295,"box":{"x":117,"y":266,"width":219,"height":12}},{"id":"80ac326e-73ae-4c69-87fd-e9fb7289f3a0","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same","page_number":295,"box":{"x":116,"y":295,"width":710,"height":12}},{"id":"a9f1c7c5-2ce2-47fa-a886-107202aea3e0","block_type":"box","text":"economic exposure. Certain companies, particularly those new to public markets, could make the case","page_number":295,"box":{"x":116,"y":311,"width":768,"height":12}},{"id":"e38786fa-5ace-45f0-a38e-ce41ded6fe64","block_type":"box","text":"to adopt a differentiated voting rights structure, or dual class stock. In those situations, we encourage","page_number":295,"box":{"x":116,"y":326,"width":755,"height":12}},{"id":"7bbca72a-b81f-4b5c-a62b-8c73f129b59f","block_type":"box","text":"companies to evaluate and seek approval for their capital structure on a periodic basis.","page_number":295,"box":{"x":116,"y":342,"width":650,"height":11}},{"id":"952c6773-f9af-4a9b-a589-e24e6db0d6a8","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":295,"box":{"x":320,"y":377,"width":364,"height":9}},{"id":"c0d666d7-a182-4fba-bf14-839f0be41249","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own","page_number":295,"box":{"x":116,"y":406,"width":712,"height":12}},{"id":"30bf4036-cc95-4a99-9bf8-2ef89cd01a1b","block_type":"box","text":"detailed analyses of proposals.","page_number":295,"box":{"x":116,"y":421,"width":235,"height":12}},{"id":"0755c2ce-3cb9-4fb8-855e-ffb1aca0dc2c","block_type":"box","text":"Mergers and acquisitions","page_number":295,"box":{"x":117,"y":457,"width":206,"height":12}},{"id":"5033095a-98ce-41cd-8b69-4597e3e6c602","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as","page_number":295,"box":{"x":116,"y":485,"width":745,"height":12}},{"id":"65ad9834-e9a6-427f-af57-5e70cd6b195f","block_type":"box","text":"minority shareholders. Management should provide an assessment of the proposed transaction’s","page_number":295,"box":{"x":117,"y":501,"width":725,"height":12}},{"id":"17db3c4e-584a-433f-808e-eb17584241a2","block_type":"box","text":"strategic and financial rationale, along with its execution and operational risks. We review each","page_number":295,"box":{"x":116,"y":516,"width":709,"height":12}},{"id":"9abeb8af-f675-48ac-ac0d-86b3ce2f2e1e","block_type":"box","text":"transaction independently based on these factors and the degree to which the transaction enhances","page_number":295,"box":{"x":116,"y":532,"width":748,"height":12}},{"id":"6563a498-257c-4d08-b54a-24c952fa2984","block_type":"box","text":"shareholder value. The board might consider establishing an ad hoc transaction committee to","page_number":295,"box":{"x":116,"y":547,"width":699,"height":12}},{"id":"2a584f68-d660-419b-9ad2-9ae03458385d","block_type":"box","text":"undertake an independent assessment of a significant merger or acquisition, in advance of making its","page_number":295,"box":{"x":117,"y":563,"width":757,"height":12}},{"id":"bcb50303-8277-4035-be94-18d756d2132a","block_type":"box","text":"recommendation to shareholders.","page_number":295,"box":{"x":117,"y":578,"width":254,"height":10}},{"id":"ddf75ab0-cc65-47c6-b2ea-51605f4ecea9","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial","page_number":295,"box":{"x":116,"y":607,"width":703,"height":12}},{"id":"d6ab96c1-c99f-4eec-a699-0f72cd3ac1f6","block_type":"box","text":"interests.","page_number":295,"box":{"x":117,"y":623,"width":72,"height":9}},{"id":"8e01b489-616a-4ba7-9186-77af0979f838","block_type":"box","text":"Anti-takeover defenses","page_number":295,"box":{"x":116,"y":651,"width":190,"height":10}},{"id":"5b378f88-c6e0-4a06-ac48-eb909f7cb02e","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":295,"box":{"x":117,"y":680,"width":753,"height":12}},{"id":"5cb53cb4-cf3c-4dbe-ac10-f12edc6631c4","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered","page_number":295,"box":{"x":116,"y":696,"width":726,"height":12}},{"id":"fefe8cb6-ea73-4838-b399-625a84642d85","block_type":"box","text":"long-term shareholder value. By exception, a poison pill may be supported if its purpose is to delay a","page_number":295,"box":{"x":117,"y":711,"width":746,"height":12}},{"id":"84f2e0b0-ad2d-4a4b-b1e3-e6d0042fcad7","block_type":"box","text":"takeover that is considered sub-optimal and enable management to seek an improved offer. Similarly,","page_number":295,"box":{"x":116,"y":727,"width":754,"height":12}},{"id":"c55dd3c1-1238-408c-aeff-fea5cb8ef8ea","block_type":"box","text":"management could make the case to use a poison pill to block a shareholder activism campaign that","page_number":295,"box":{"x":117,"y":742,"width":746,"height":12}},{"id":"7d83e171-deae-47e2-a49e-ce94c8079bd1","block_type":"box","text":"may be counter to the interests of other investors. Defense mechanisms introduced in these","page_number":295,"box":{"x":117,"y":758,"width":681,"height":12}},{"id":"9a546eab-6c8e-497f-87a1-6fde7a17efae","block_type":"box","text":"circumstances should be limited in term and threshold, and also be closely monitored by the","page_number":295,"box":{"x":116,"y":773,"width":683,"height":12}},{"id":"ff954723-45cf-4af6-9585-f7a3d0b3650a","block_type":"box","text":"independent members of the board. We consider it good practice for companies to put to a shareholder","page_number":295,"box":{"x":117,"y":789,"width":766,"height":12}},{"id":"c7bcabde-5d40-49de-8741-c07deb4e8a1c","block_type":"box","text":"vote any mechanisms expected to be in place for more than 12 months.","page_number":295,"box":{"x":116,"y":804,"width":532,"height":12}},{"id":"634ac88f-ff37-4f0d-85d3-a97a5bd11780","block_type":"box","text":"Shareholder activism","page_number":295,"box":{"x":116,"y":833,"width":175,"height":9}},{"id":"7d126a06-832f-4d0d-83fe-445cd1614481","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to","page_number":295,"box":{"x":116,"y":862,"width":732,"height":12}},{"id":"16a13409-6d4b-4ee2-b415-0658f2179554","block_type":"box","text":"understand their analysis and objectives, once they have publicly disclosed their campaign. We may","page_number":295,"box":{"x":117,"y":877,"width":748,"height":12}},{"id":"af48a5b1-c6f4-4325-aa92-70205d20df84","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":295,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"542b6599-2d8d-44c2-bdc4-18286f9116f7","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":295,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"d2240bea-0e94-4bae-8fa9-f31fb5dbddc5","block_type":"box","text":"11","page_number":295,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"99c912cc-f337-494b-b146-efef43bc896f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":295,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f1e8bada-55ab-4f22-866f-4ba27628c24e","block_type":"box","text":"also engage with company management and possibly board members, especially those the activist","page_number":296,"box":{"x":116,"y":87,"width":741,"height":12}},{"id":"d04496f5-51ae-4ac0-9c0e-a7a18c6825ed","block_type":"box","text":"may be seeking to replace. In our assessment, we evaluate various factors, including the concerns","page_number":296,"box":{"x":117,"y":102,"width":737,"height":13}},{"id":"d295793e-d9c5-4f8c-a922-63d2f7a1670f","block_type":"box","text":"raised by the activist and the case for change; the quality of both the activist’s and management’s","page_number":296,"box":{"x":117,"y":118,"width":728,"height":12}},{"id":"69b69497-1a7b-4d85-8216-1d3dbc561b94","block_type":"box","text":"plans; and the qualifications of each party’s candidates. We evaluate each contested situation by","page_number":296,"box":{"x":117,"y":134,"width":723,"height":12}},{"id":"bcd189ec-eaf4-402e-8caf-b7a130291722","block_type":"box","text":"assessing the potential financial outcome for our clients as minority shareholders.","page_number":296,"box":{"x":116,"y":149,"width":610,"height":12}},{"id":"3e86da3c-cd8c-45f0-88d9-0aa325ec2995","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent","page_number":296,"box":{"x":116,"y":181,"width":728,"height":12}},{"id":"5ea19899-08db-4ced-abe9-19ce5df71214","block_type":"box","text":"judgment, or the relevant portfolio manager has determined that there is a case for change to enhance","page_number":296,"box":{"x":115,"y":196,"width":767,"height":12}},{"id":"9c9ab950-ba96-45e6-8571-902651a45bb4","block_type":"box","text":"shareholder value, or if the incumbent board members do not demonstrate the relevant skills and","page_number":296,"box":{"x":116,"y":212,"width":725,"height":11}},{"id":"11f37976-8211-4710-a36f-3bbce75e95b6","block_type":"box","text":"expertise or have a poor track record of protecting shareholders’ interests.","page_number":296,"box":{"x":116,"y":227,"width":556,"height":12}},{"id":"0c0097b1-55d1-4c36-a858-9c0f69423d7d","block_type":"box","text":"Significant shareholders and related party transactions","page_number":296,"box":{"x":116,"y":259,"width":446,"height":12}},{"id":"5e66f6a6-79ea-4db1-b670-d222fa34c5b6","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":296,"box":{"x":117,"y":291,"width":768,"height":12}},{"id":"8497ff4f-29f1-4484-afcd-4e043dae14bc","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":296,"box":{"x":117,"y":306,"width":534,"height":12}},{"id":"3b642b9d-e57b-46e3-a00e-b55fc610783e","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or","page_number":296,"box":{"x":116,"y":338,"width":751,"height":12}},{"id":"d0f3e206-43e8-4f3f-84e8-7974462e1c6c","block_type":"box","text":"companies affiliated with the public company, to be disclosed in detail and conducted on terms similar","page_number":296,"box":{"x":116,"y":354,"width":760,"height":12}},{"id":"b5e52f1a-6087-4f49-af09-13d741fb015a","block_type":"box","text":"to what would objectively have been agreed with a non-related party. In our view, such transactions","page_number":296,"box":{"x":116,"y":369,"width":743,"height":12}},{"id":"8c9879ed-b90d-4876-95c5-99b64a57b365","block_type":"box","text":"should be reviewed and approved by the independent members of the board, and if voted on, only","page_number":296,"box":{"x":116,"y":385,"width":734,"height":12}},{"id":"e8b15151-6be9-4fe0-9c3f-03d35137b14b","block_type":"box","text":"disinterested shareholders should vote.","page_number":296,"box":{"x":116,"y":400,"width":297,"height":10}},{"id":"e1f90087-52b4-4c0d-bcc3-a32d4b3eb718","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":296,"box":{"x":257,"y":440,"width":490,"height":12}},{"id":"ad9b8ba1-9425-440d-8d97-af6918a0a131","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s","page_number":296,"box":{"x":117,"y":472,"width":742,"height":12}},{"id":"2f92b565-ce2e-44e4-b4f6-8ef16a60a1c7","block_type":"box","text":"strategy, its implementation and financial performance, as well as to assess the quality of management","page_number":296,"box":{"x":116,"y":487,"width":770,"height":12}},{"id":"1278da7f-79cc-437d-9972-53ebb50c66f0","block_type":"box","text":"and operations and potential for the company to create shareholder value over time. We consider it","page_number":296,"box":{"x":116,"y":503,"width":741,"height":12}},{"id":"c7c8de17-0799-45e4-b3bd-d7700b29f0f8","block_type":"box","text":"good practice for the board to oversee corporate reporting and the policies and procedures","page_number":296,"box":{"x":116,"y":518,"width":679,"height":12}},{"id":"37c5668d-98cb-406d-a54b-78caaa4571ec","block_type":"box","text":"underpinning the internal audit function and external audit.","page_number":296,"box":{"x":117,"y":534,"width":436,"height":12}},{"id":"9532ead7-9723-4b0d-8227-910a42cb79aa","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other","page_number":296,"box":{"x":116,"y":566,"width":734,"height":12}},{"id":"33b943b8-2da9-45bf-b404-7a294ea1e3a8","block_type":"box","text":"stakeholders, on its financial performance and position. It should provide an accurate and balanced","page_number":296,"box":{"x":116,"y":581,"width":742,"height":12}},{"id":"f054407e-829b-40ea-b021-a3c09ac50408","block_type":"box","text":"assessment of the risks and opportunities the company faces in realizing its long-term strategy.","page_number":296,"box":{"x":116,"y":597,"width":712,"height":12}},{"id":"c74108c2-b926-4490-ba3d-c75515fd766e","block_type":"box","text":"Accordingly, the assumptions made by management and reviewed by the auditor in preparing the","page_number":296,"box":{"x":116,"y":612,"width":729,"height":12}},{"id":"ba729641-55ea-4aa2-aa9d-21ad0096fa51","block_type":"box","text":"financial statements should be reasonable and justified. Financial statements should be prepared in","page_number":296,"box":{"x":116,"y":628,"width":744,"height":12}},{"id":"1347e0fd-2738-4c34-9a69-c56544fe9f6c","block_type":"box","text":"accordance with globally developed reporting standards and any divergence from generally accepted","page_number":296,"box":{"x":116,"y":643,"width":755,"height":12}},{"id":"65ce3715-57bc-40e3-a256-cfc2ef8b204c","block_type":"box","text":"accounting principles should be explained in detail and justified. Accounting restatements should be","page_number":296,"box":{"x":116,"y":659,"width":745,"height":12}},{"id":"914676db-26d5-493c-ae9f-d2e629dd54f6","block_type":"box","text":"explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":296,"box":{"x":116,"y":674,"width":631,"height":12}},{"id":"1800bf3c-8c38-47e6-a9d5-23712d86f97b","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":296,"box":{"x":117,"y":706,"width":763,"height":12}},{"id":"cf13908a-3713-4081-9f01-8082370e4821","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction,","page_number":296,"box":{"x":117,"y":721,"width":731,"height":13}},{"id":"13e780ee-6327-4a60-80ca-0a4ed0e01892","block_type":"box","text":"non-financial information, internal control frameworks and Enterprise Risk Management systems. In","page_number":296,"box":{"x":117,"y":737,"width":737,"height":12}},{"id":"adf3977d-21ac-4b46-91af-b28456ff81be","block_type":"box","text":"our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":296,"box":{"x":116,"y":752,"width":725,"height":13}},{"id":"5f7def5e-380c-479a-bfa4-708cb755be6c","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders. Audit committees","page_number":296,"box":{"x":116,"y":768,"width":762,"height":12}},{"id":"8b0feb9c-21d9-4ff0-8e35-6d0d64ac11e1","block_type":"box","text":"should have a procedure in place for assessing the independence of the auditor and the quality of the","page_number":296,"box":{"x":116,"y":784,"width":753,"height":12}},{"id":"42e2b243-3f02-4f70-bea1-cdb97c2a734a","block_type":"box","text":"external audit process annually.","page_number":296,"box":{"x":116,"y":799,"width":235,"height":12}},{"id":"0b558783-961b-4c0b-9c27-e147a8246acd","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to","page_number":296,"box":{"x":116,"y":831,"width":771,"height":12}},{"id":"7a7acb61-03f1-495a-906b-3c71c5f8bd42","block_type":"box","text":"how a company manages risks or generates revenue. BAIS finds it helpful to our understanding when","page_number":296,"box":{"x":117,"y":846,"width":758,"height":12}},{"id":"17732462-ee46-4dbc-9ab4-2521484056f9","block_type":"box","text":"companies provide robust, standardized disclosures on their material sustainability-related risks and","page_number":296,"box":{"x":116,"y":862,"width":747,"height":12}},{"id":"f10f7dc4-bb90-41d9-a4ab-e4619f53878c","block_type":"box","text":"opportunities. The International Sustainability Standards Board (ISSB) is one entity working to meet","page_number":296,"box":{"x":116,"y":877,"width":743,"height":12}},{"id":"c5cc533a-6f68-42c4-99cd-afb4804e66ed","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":296,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"aec7374d-15b4-4caa-a1fa-bad95fe0453e","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":296,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"1bd91f2d-1dc7-4999-a762-dcc11e750000","block_type":"box","text":"12","page_number":296,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"ae5d0d93-be5b-4def-9838-66d83b81a486","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":296,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6cd9d942-96a1-4dd8-9388-d1ff4aad2d39","block_type":"box","text":"these objectives through its reporting standards, which may be helpful to companies in preparing such","page_number":297,"box":{"x":116,"y":87,"width":763,"height":12}},{"id":"a62aafd7-4465-4772-8e11-a38ba990d7a6","block_type":"box","text":"reports.","page_number":297,"box":{"x":117,"y":103,"width":54,"height":11}},{"id":"d5ff3f1a-138f-4fc3-8a53-ff23c12ddc99","block_type":"box","text":"9","page_number":297,"box":{"x":173,"y":103,"width":5,"height":6}},{"id":"25b9af84-fd3c-4173-bf78-8d5566bfa37b","block_type":"box","text":"However, we do not mandate any specific disclosure framework, and note that companies in","page_number":297,"box":{"x":179,"y":102,"width":696,"height":13}},{"id":"b07b7eee-6ded-4b43-9cc1-f7e582943c34","block_type":"box","text":"certain jurisdictions are subject to mandatory reporting requirements under standards specified by","page_number":297,"box":{"x":116,"y":118,"width":731,"height":12}},{"id":"5a2a8773-f39b-4be7-baed-71cc4fad1508","block_type":"box","text":"policy makers.","page_number":297,"box":{"x":117,"y":134,"width":105,"height":12}},{"id":"90404916-ec9d-4301-abec-24857649f0d9","block_type":"box","text":"10","page_number":297,"box":{"x":224,"y":134,"width":11,"height":6}},{"id":"06a3db02-ca8d-4466-a8ef-1292489e8e9f","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":297,"box":{"x":117,"y":161,"width":765,"height":12}},{"id":"08349d5e-d4de-4a4a-803e-887095ea0baa","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for","page_number":297,"box":{"x":116,"y":176,"width":759,"height":12}},{"id":"6e5f21a0-dc48-4056-92f1-9843da085036","block_type":"box","text":"employees, and potentially other stakeholders, can be a useful mechanism for ensuring that senior","page_number":297,"box":{"x":116,"y":192,"width":738,"height":12}},{"id":"3748950a-90ef-4057-8157-6cebbe3ee359","block_type":"box","text":"management and the board are aware of potential misconduct or breaches in risk management and","page_number":297,"box":{"x":117,"y":207,"width":745,"height":12}},{"id":"ef91d94e-3bb1-4d6e-9fd6-2e8b4605e8fe","block_type":"box","text":"internal control processes.","page_number":297,"box":{"x":117,"y":223,"width":200,"height":12}},{"id":"9f3d099d-0e7d-406d-8fb6-3a73ab54ef72","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in","page_number":297,"box":{"x":116,"y":250,"width":748,"height":12}},{"id":"8217a443-470e-44d4-964b-f34196bad281","block_type":"box","text":"the quality of corporate reporting. It is helpful when the audit report gives some insight into the scope","page_number":297,"box":{"x":116,"y":266,"width":752,"height":12}},{"id":"d9be6aa7-4d63-4024-950d-aa109031748a","block_type":"box","text":"and focus of the audit, as well as any critical audit matters identified and how these were resolved. A","page_number":297,"box":{"x":116,"y":281,"width":751,"height":12}},{"id":"090fc451-b56c-41e6-ad24-4f259eaa5d05","block_type":"box","text":"comprehensive and effective audit is time and resource intensive, and the audit fee should be","page_number":297,"box":{"x":116,"y":297,"width":700,"height":12}},{"id":"24f05e3a-325a-4c35-a7a5-57caab4b398a","block_type":"box","text":"commensurate. Fees paid to the audit firm for non-audit consulting should not exceed the audit fee to a","page_number":297,"box":{"x":116,"y":312,"width":771,"height":12}},{"id":"2b1bf78a-7c06-4a6a-937f-709464269e65","block_type":"box","text":"degree that may prompt concerns about the independence of the audit. The audit committee should","page_number":297,"box":{"x":116,"y":328,"width":746,"height":12}},{"id":"87c1c574-8672-4f12-8487-bbf1f6ac723d","block_type":"box","text":"explain its position on auditor tenure and how it confirmed that the auditor remained independent.","page_number":297,"box":{"x":116,"y":343,"width":728,"height":12}},{"id":"d0f6c552-aa2d-4619-8c35-75eec9c2aea0","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or","page_number":297,"box":{"x":116,"y":370,"width":740,"height":12}},{"id":"870eacc9-5a30-4dfd-ba00-d8a9e89483c3","block_type":"box","text":"there are material misstatements in financial reports. In markets where relevant, we may vote against a","page_number":297,"box":{"x":116,"y":386,"width":771,"height":12}},{"id":"1c43c1c8-bbc6-4254-b323-9cf12f0f205e","block_type":"box","text":"proposal to approve the financial statements or the discharge of the board when we are concerned","page_number":297,"box":{"x":117,"y":401,"width":737,"height":12}},{"id":"4bdca1fa-a1f1-46dc-9b04-e10054f9268a","block_type":"box","text":"about the quality of corporate reporting or the audit. We may vote against proposals to appoint the","page_number":297,"box":{"x":116,"y":417,"width":734,"height":12}},{"id":"4232c2fc-cc4f-4462-a4fd-6ed45326cbc6","block_type":"box","text":"auditor, ratify the audit report, or approve the audit fee if we are concerned about the auditor’s","page_number":297,"box":{"x":116,"y":432,"width":702,"height":12}},{"id":"2c6212f2-6060-4d8d-956a-d9f30c681290","block_type":"box","text":"independence, the quality of the audit, or there are material misstatements in financial reports and the","page_number":297,"box":{"x":117,"y":448,"width":760,"height":12}},{"id":"f8064f53-28dc-4bc8-9d64-680a0d46481d","block_type":"box","text":"board has not established reasonable remediation plans.","page_number":297,"box":{"x":117,"y":464,"width":426,"height":11}},{"id":"56ec3d75-056e-4fa6-b7a0-2597ef5e3b5c","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":297,"box":{"x":318,"y":496,"width":369,"height":10}},{"id":"a534c173-64c2-439f-a767-dc9324651c2d","block_type":"box","text":"General shareholder meetings","page_number":297,"box":{"x":116,"y":524,"width":247,"height":12}},{"id":"500dfb31-3d03-4229-ba99-6988b9932eee","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine","page_number":297,"box":{"x":117,"y":551,"width":768,"height":12}},{"id":"057cdd5c-04ac-4fcf-94f6-0c1154167986","block_type":"box","text":"items of business are discussed and voted on by shareholders in attendance or submitting proxy votes.","page_number":297,"box":{"x":117,"y":567,"width":771,"height":12}},{"id":"64b49e92-e76e-43ef-be53-99288fdc21e8","block_type":"box","text":"Companies should disclose materials relevant to the shareholder meeting sufficiently in advance so","page_number":297,"box":{"x":117,"y":582,"width":742,"height":12}},{"id":"c4fa4382-12e7-41b9-8738-5e8c01beec5c","block_type":"box","text":"that shareholders can take them into consideration in their voting decisions. Many companies offer","page_number":297,"box":{"x":116,"y":598,"width":736,"height":12}},{"id":"e024bb9c-ecb8-4372-b650-51c55c12670a","block_type":"box","text":"shareholders the option of participating in the meeting virtually which, whilst welcome, should not limit","page_number":297,"box":{"x":116,"y":613,"width":758,"height":12}},{"id":"dde6454a-9804-492d-b425-6f50c94e0b9b","block_type":"box","text":"the rights of shareholders to participate as they would during an in-person meeting.","page_number":297,"box":{"x":116,"y":629,"width":622,"height":12}},{"id":"be6520dd-7865-41d1-8c56-1701eb08e63e","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are","page_number":297,"box":{"x":116,"y":656,"width":757,"height":12}},{"id":"323132e6-f3d0-4bf3-8f4a-4db56986cb54","block_type":"box","text":"not provided in a timely manner or do not provide sufficient information for us to make an informed","page_number":297,"box":{"x":117,"y":671,"width":728,"height":12}},{"id":"1c9baef0-05bd-438c-a967-cfda6248a0d4","block_type":"box","text":"voting decision. We may vote against directors if the format of the shareholder meeting does not","page_number":297,"box":{"x":116,"y":687,"width":715,"height":12}},{"id":"036930c4-7268-4ec4-bfd7-63dc630ae7e3","block_type":"box","text":"accommodate reasonable shareholder participation.","page_number":297,"box":{"x":116,"y":702,"width":385,"height":12}},{"id":"ee37924e-4d71-4d6f-80b1-2b43139e10aa","block_type":"box","text":"Bylaw amendments","page_number":297,"box":{"x":117,"y":730,"width":155,"height":12}},{"id":"692c3b43-a468-41a4-855a-6b553103e7a9","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally","page_number":297,"box":{"x":116,"y":757,"width":748,"height":12}},{"id":"be5fe7b3-eab2-4581-9ce1-d693baba70a2","block_type":"box","text":"support those that are aligned with the interests of minority shareholders. Any material changes to the","page_number":297,"box":{"x":116,"y":772,"width":755,"height":12}},{"id":"289281f6-0570-4ae7-b3d1-afa8fbae0fb9","block_type":"box","text":"bylaws should be explained in detail and put to a shareholder vote.","page_number":297,"box":{"x":117,"y":788,"width":494,"height":12}},{"id":"307be84c-5e55-4075-ba3e-342870f0de6b","block_type":"box","text":"9","page_number":297,"box":{"x":143,"y":813,"width":4,"height":5}},{"id":"8b61e7df-3d36-45f3-8140-16151f508402","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":297,"box":{"x":170,"y":813,"width":666,"height":10}},{"id":"cd1b5466-a938-46c9-96ca-9a0bdff2199f","block_type":"box","text":"Foundation. Please refer to the IFRS website to learn more about the framework and standards S1 “General","page_number":297,"box":{"x":171,"y":826,"width":641,"height":8}},{"id":"fd5b75f7-4392-4811-976c-a015c59784ec","block_type":"box","text":"Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related Disclosures.”","page_number":297,"box":{"x":171,"y":839,"width":672,"height":9}},{"id":"2196e916-6a8b-4494-9172-5dc697723aba","block_type":"box","text":"10","page_number":297,"box":{"x":144,"y":854,"width":8,"height":5}},{"id":"0a842599-e4b0-4bf0-b1e0-fdac28c631ac","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional-profiles","page_number":297,"box":{"x":170,"y":854,"width":705,"height":9}},{"id":"67f6b353-96d7-48a7-865c-782325d454c1","block_type":"box","text":"issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company","page_number":297,"box":{"x":170,"y":867,"width":615,"height":9}},{"id":"8b360b2b-e597-41f6-8f00-f3a9aa1ddfeb","block_type":"box","text":"reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en","page_number":297,"box":{"x":170,"y":880,"width":468,"height":9}},{"id":"64d691e3-a41a-4303-aa87-c420b192bb60","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":297,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"626a8104-deec-44b9-ab17-239c3cf8a584","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":297,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"d942b53a-d1bc-404b-8e12-49f725b5e8d4","block_type":"box","text":"13","page_number":297,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"120540e7-3577-446a-a89b-28805c7cb2ea","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":297,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6c8cb926-73cb-4a81-a757-740b8ffa0a45","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce","page_number":298,"box":{"x":116,"y":87,"width":753,"height":12}},{"id":"7cbcc15f-1e06-4eff-be49-af89fb772918","block_type":"box","text":"additional burdens. We may vote against directors if material changes are made to the bylaws without","page_number":298,"box":{"x":116,"y":102,"width":760,"height":13}},{"id":"81c8b253-7d27-4d8d-8932-1e5be41d0afe","block_type":"box","text":"shareholder approval.","page_number":298,"box":{"x":116,"y":118,"width":167,"height":12}},{"id":"13304ffa-5600-47c4-af26-438f722c3f0a","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":298,"box":{"x":117,"y":150,"width":688,"height":12}},{"id":"4089c04b-80fc-493a-9353-eece5c409c70","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to call a special meeting of","page_number":298,"box":{"x":117,"y":165,"width":704,"height":12}},{"id":"fe3f4a2a-c380-4edb-9890-fed030e0c94e","block_type":"box","text":"shareholders. The shareholding required to exercise this right should balance its utility with the cost to","page_number":298,"box":{"x":116,"y":181,"width":761,"height":12}},{"id":"55db75fb-20dd-4fc6-9522-5f1cdd3f5c4f","block_type":"box","text":"the company of holding special meetings.","page_number":298,"box":{"x":116,"y":196,"width":313,"height":12}},{"id":"9f59153f-cf70-4279-9f7c-66dce5f86b07","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":298,"box":{"x":117,"y":228,"width":688,"height":12}},{"id":"08c91b6d-ec2b-41fb-a633-88e6fd3a6a61","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to nominate directors to the","page_number":298,"box":{"x":117,"y":243,"width":710,"height":12}},{"id":"43ef8fe4-9b8e-4bd1-8f9d-bbf4aa274e5c","block_type":"box","text":"company’s board. The threshold for this right should be set so that shareholders can exercise it without","page_number":298,"box":{"x":116,"y":259,"width":770,"height":12}},{"id":"f74b8b46-8673-4dcc-ab83-9ebd605a411a","block_type":"box","text":"being unduly disruptive to the board’s own nomination process.","page_number":298,"box":{"x":117,"y":274,"width":473,"height":12}},{"id":"2a47edfb-dfc7-4b1c-ae4b-f3b358ad5111","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability","page_number":298,"box":{"x":116,"y":306,"width":728,"height":12}},{"id":"fb45ff54-1444-4e0c-b69c-24dbbbee2186","block_type":"box","text":"mechanisms. We may vote for a shareholder proposal seeking the addition of either of these","page_number":298,"box":{"x":117,"y":321,"width":691,"height":12}},{"id":"efb860e9-019e-402b-8579-2e4ad5db7299","block_type":"box","text":"provisions to a company’s bylaws.","page_number":298,"box":{"x":117,"y":337,"width":258,"height":12}},{"id":"bfeffcd0-19f6-46db-888a-bd320e7c03ca","block_type":"box","text":"Change of domicile","page_number":298,"box":{"x":116,"y":368,"width":160,"height":12}},{"id":"c02c1b23-ccd9-4141-90c0-202bd12d2ad9","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the","page_number":298,"box":{"x":116,"y":400,"width":722,"height":12}},{"id":"1e771e17-b2ca-461b-9719-8a528d0d0d64","block_type":"box","text":"rationale for doing so is consistent with the company’s long-term strategy and business model and the","page_number":298,"box":{"x":117,"y":415,"width":761,"height":12}},{"id":"53983eb2-ae03-460f-bdd1-bec0b425c417","block_type":"box","text":"related costs are immaterial.","page_number":298,"box":{"x":117,"y":431,"width":215,"height":9}},{"id":"4114aabb-cd76-4ea8-a7b0-3b96b9e297e4","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem","page_number":298,"box":{"x":116,"y":462,"width":757,"height":12}},{"id":"56fd4d3a-057b-42f3-a5ac-bd5d43306d5c","block_type":"box","text":"aligned with our clients’ financial interests.","page_number":298,"box":{"x":116,"y":478,"width":318,"height":12}},{"id":"1eea1f37-576a-4c90-b873-413f54839897","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":298,"box":{"x":116,"y":509,"width":504,"height":12}},{"id":"c08b0b65-d119-45e8-865c-50edaf52265b","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and","page_number":298,"box":{"x":117,"y":541,"width":762,"height":12}},{"id":"61aca4d0-3e42-48bf-a6fc-fa875e42cc8f","block_type":"box","text":"explained in the context of long-term strategy and business dynamics. Such changes may significantly","page_number":298,"box":{"x":116,"y":556,"width":764,"height":12}},{"id":"e71103a9-9506-44fb-9ebe-7f7eae94e4e8","block_type":"box","text":"alter an investor’s views on the suitability of a company for their investment strategy or portfolio.","page_number":298,"box":{"x":116,"y":572,"width":716,"height":12}},{"id":"5ad73d3f-677d-43af-b2f9-5d28b1703dc4","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its","page_number":298,"box":{"x":116,"y":603,"width":743,"height":12}},{"id":"2226a1c6-f400-452c-9719-d0e7938d0868","block_type":"box","text":"business if the board has not provided a credible argument for change.","page_number":298,"box":{"x":117,"y":619,"width":530,"height":12}},{"id":"f69f64c8-38a9-4e2c-b86c-ea792d3caed3","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":298,"box":{"x":380,"y":658,"width":244,"height":10}},{"id":"4a48c374-a3f3-45e1-9e39-295ebd1e301c","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals","page_number":298,"box":{"x":116,"y":690,"width":750,"height":12}},{"id":"2523e689-9402-4bbc-ad94-a740c536cca3","block_type":"box","text":"to the general shareholder meeting asking a company to take a particular course of action subject to","page_number":298,"box":{"x":116,"y":705,"width":744,"height":13}},{"id":"f5211099-83c6-45a1-82bd-30e309c4b751","block_type":"box","text":"the proposal being supported by a majority of votes cast at the meeting. The topics raised can address","page_number":298,"box":{"x":116,"y":721,"width":762,"height":12}},{"id":"13104a13-5e59-4f74-abb3-48fa558c0323","block_type":"box","text":"a range of matters that may be relevant to a company’s business.","page_number":298,"box":{"x":116,"y":736,"width":486,"height":13}},{"id":"bf37cd78-ec21-4e8c-abb6-45583a7b22c4","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":298,"box":{"x":116,"y":768,"width":762,"height":12}},{"id":"fa6b39ea-05eb-47ca-a36c-dc1496aaa7c2","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with","page_number":298,"box":{"x":116,"y":784,"width":691,"height":12}},{"id":"50d6e236-0e6a-4484-bc7c-38a02f7c7199","block_type":"box","text":"shareholders’ interests, and what impact the proposal being acted upon might have on financial","page_number":298,"box":{"x":116,"y":799,"width":708,"height":12}},{"id":"9750dda0-870c-4ff1-a09b-5c7350f05747","block_type":"box","text":"performance.","page_number":298,"box":{"x":117,"y":814,"width":96,"height":12}},{"id":"02d0c9ec-a014-4a72-a45d-1c1c28a222b0","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or","page_number":298,"box":{"x":116,"y":846,"width":711,"height":12}},{"id":"768d99b5-8c2c-472a-a7ee-e9bd5748c01b","block_type":"box","text":"performance is to engage to understand the apparent difference in perspective. If we are concerned a","page_number":298,"box":{"x":117,"y":861,"width":760,"height":13}},{"id":"c67b6f8c-c10b-42b5-a6d4-2ff2ffcfb7a8","block_type":"box","text":"company is not acting in shareholders’ financial interests, we may vote against the election of directors.","page_number":298,"box":{"x":116,"y":877,"width":772,"height":12}},{"id":"dbef9805-ffc4-4878-8ed5-5ceaec424b4d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":298,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"de50b7fb-c948-4fc9-ae7b-4e121d8c643c","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":298,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"f15f6fa3-fa51-4b58-a7f9-b34bdcf6791b","block_type":"box","text":"14","page_number":298,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"9227dcad-8ebd-47cc-a868-8d956bae61fb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":298,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ebd0ee20-1c7e-4eb9-9063-5da5ba657a3d","block_type":"box","text":"We may support a relevant shareholder proposal if doing so is aligned with our clients’ financial","page_number":299,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"87d16591-9553-4a86-a42d-3abb3bcdf596","block_type":"box","text":"interests. We generally do not support shareholder proposals that are legally binding on the company,","page_number":299,"box":{"x":117,"y":103,"width":760,"height":12}},{"id":"b9107485-cbbc-4026-b987-d156ab3c12f5","block_type":"box","text":"seek to alter a company’s strategy or direct its operations, or are unrelated to how a company","page_number":299,"box":{"x":116,"y":118,"width":700,"height":12}},{"id":"221e6cf9-633d-4339-bf90-555f1e689ec8","block_type":"box","text":"manages risk or generates financial returns.","page_number":299,"box":{"x":117,"y":134,"width":331,"height":12}},{"id":"1bc5430d-1a48-43fc-afb8-d7db0c164b48","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place","page_number":299,"box":{"x":117,"y":164,"width":737,"height":12}},{"id":"a76dffcd-5de1-4317-8147-382a60a7df5d","block_type":"box","text":"restrictions and limitations on how we can interact with the companies in which we invest on behalf of","page_number":299,"box":{"x":117,"y":180,"width":755,"height":12}},{"id":"9ef390a0-00d4-4756-b88d-58c2548d8423","block_type":"box","text":"our clients, including our ability to submit shareholder proposals. We do not submit shareholder","page_number":299,"box":{"x":116,"y":195,"width":712,"height":12}},{"id":"bcbcc99d-0c56-4277-8c40-9e24c1abef39","block_type":"box","text":"proposals but can vote, on behalf of clients who authorize us to do so, on proposals put forth by others.","page_number":299,"box":{"x":117,"y":211,"width":770,"height":12}},{"id":"b5b1bd75-5a5c-4132-8329-7c169634397b","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":299,"box":{"x":351,"y":249,"width":302,"height":10}},{"id":"d55145eb-b2c2-494a-9c3c-c0c833dfd028","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the","page_number":299,"box":{"x":116,"y":280,"width":733,"height":12}},{"id":"139bad99-3858-43ce-8bd7-91b78244c5d5","block_type":"box","text":"jurisdictions in which they engage. When a corporation reports material financial risk related to policy","page_number":299,"box":{"x":115,"y":295,"width":754,"height":12}},{"id":"1c5b77eb-ecd6-4a37-8e86-400a03cc4d31","block_type":"box","text":"and or regulatory changes, BAIS may seek to understand how it is addressing the material risk","page_number":299,"box":{"x":116,"y":311,"width":708,"height":12}},{"id":"718563c2-015e-4eb3-bde5-a41866410f17","block_type":"box","text":"identified. We seek to understand how companies engage in corporate political activities and ensure","page_number":299,"box":{"x":117,"y":326,"width":748,"height":12}},{"id":"22940bdb-b0f0-418e-ba00-33742fd3cd8f","block_type":"box","text":"that their participation is consistent with their public statements on policy matters material to the","page_number":299,"box":{"x":116,"y":342,"width":714,"height":12}},{"id":"2a5bb31a-c464-4956-85f9-c9a52d4141a7","block_type":"box","text":"company’s long-term strategy. The board should be aware of the approach taken by management on","page_number":299,"box":{"x":116,"y":357,"width":756,"height":12}},{"id":"75b329e2-1f2e-46c4-b394-0f6d767b517b","block_type":"box","text":"corporate political activities as there can be reputational risks arising from inconsistencies between a","page_number":299,"box":{"x":116,"y":373,"width":752,"height":12}},{"id":"7ffa9998-881d-4057-a5a4-120036dccfa0","block_type":"box","text":"company’s policy engagement and stated policy positions. Companies should, as a minimum, meet all","page_number":299,"box":{"x":116,"y":388,"width":764,"height":12}},{"id":"29727249-a8fb-4f01-a27d-5b8548aa11f5","block_type":"box","text":"regulatory disclosure requirements on political activities. We may engage a company where we would","page_number":299,"box":{"x":117,"y":404,"width":759,"height":12}},{"id":"d443ba9f-2b29-4506-af07-3564300a6c10","block_type":"box","text":"like to better understand its approach to policy engagement, where relevant.","page_number":299,"box":{"x":117,"y":419,"width":569,"height":12}},{"id":"04c802ae-ec09-46a0-aee2-9a1bfe827b8c","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their","page_number":299,"box":{"x":116,"y":450,"width":737,"height":12}},{"id":"9dee2e7e-4b80-4862-ab8f-0ee40674cb0d","block_type":"box","text":"policy priorities and the policy positions of the trade associations of which they are active members and","page_number":299,"box":{"x":117,"y":465,"width":770,"height":13}},{"id":"87250211-a476-4f46-8bd2-d2a56cd8743d","block_type":"box","text":"any engagements undertaken by trade associations on behalf of members.","page_number":299,"box":{"x":116,"y":481,"width":562,"height":12}},{"id":"cb7a3f77-5aa7-4eb4-ae63-efee9ed2bfed","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s","page_number":299,"box":{"x":116,"y":512,"width":712,"height":12}},{"id":"e4345a8e-46a3-4908-90c7-288f92dca6f0","block_type":"box","text":"disclosures are insufficient to address the material risk it has identified.","page_number":299,"box":{"x":116,"y":527,"width":530,"height":10}},{"id":"c1a35bac-6861-417e-b2fc-9ac6cf0c5159","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":299,"box":{"x":223,"y":565,"width":559,"height":10}},{"id":"bcc1562c-d6c4-48c8-a00a-36fa9c80b8ef","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their","page_number":299,"box":{"x":116,"y":596,"width":751,"height":12}},{"id":"d5854f4e-684f-4722-8b82-4f274d149a6f","block_type":"box","text":"business operations. In our experience, sustainability-related factors","page_number":299,"box":{"x":117,"y":612,"width":505,"height":12}},{"id":"967013a3-3dce-4798-9fe2-b067622bf185","block_type":"box","text":"11","page_number":299,"box":{"x":624,"y":612,"width":9,"height":6}},{"id":"0d3aef74-ce50-4312-8515-3adf4d0e5772","block_type":"box","text":"that are relevant to a company’s","page_number":299,"box":{"x":635,"y":612,"width":249,"height":12}},{"id":"4c880b8b-1f6a-4ce2-99ac-344a8d938ab6","block_type":"box","text":"business or material to its financial performance, are generally operational considerations embedded","page_number":299,"box":{"x":117,"y":627,"width":752,"height":12}},{"id":"a5f70fa9-28c5-4d27-8528-6e926d9a5d3c","block_type":"box","text":"into day-to-day management systems. Certain sustainability issues may also inform long-term strategic","page_number":299,"box":{"x":117,"y":643,"width":769,"height":12}},{"id":"48eaa1d8-1bef-4b3d-9edf-050962c7742d","block_type":"box","text":"planning, for example, investing in product innovation in anticipation of changing consumer demand or","page_number":299,"box":{"x":117,"y":658,"width":763,"height":12}},{"id":"17e6641a-4758-402d-a249-19bb96cf6a80","block_type":"box","text":"adapting supply chains in response to changing regulatory requirements.","page_number":299,"box":{"x":116,"y":674,"width":540,"height":12}},{"id":"19754097-6a28-422f-8d9c-cef0066bdf42","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business","page_number":299,"box":{"x":116,"y":704,"width":763,"height":12}},{"id":"5d04aae2-1ea4-42f8-9cca-64080d196f7f","block_type":"box","text":"relevant will vary by company business model, sector, key markets, and time horizon, amongst other","page_number":299,"box":{"x":117,"y":720,"width":747,"height":12}},{"id":"671ce997-1849-46d3-afd8-33e3f7f1478c","block_type":"box","text":"considerations. From company disclosures and our engagement, we aim to understand how","page_number":299,"box":{"x":116,"y":735,"width":684,"height":12}},{"id":"c62552c3-f24b-434c-8fd0-b29b306632bf","block_type":"box","text":"management is identifying, assessing and integrating material sustainability-related risks and","page_number":299,"box":{"x":117,"y":751,"width":688,"height":12}},{"id":"a1ab47d0-37be-413d-b212-8b2ca42da7c9","block_type":"box","text":"11","page_number":299,"box":{"x":144,"y":776,"width":7,"height":5}},{"id":"3f4173ae-6f24-452c-8e67-a65e896ac5e8","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":299,"box":{"x":171,"y":776,"width":691,"height":10}},{"id":"9d567b33-042d-4836-aedb-03ff48b2a4b5","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":299,"box":{"x":170,"y":789,"width":686,"height":10}},{"id":"1d091ff1-4dfc-40f0-8c2a-4d9c13ae1b3d","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":299,"box":{"x":170,"y":802,"width":682,"height":9}},{"id":"7b7d32f7-490e-47e8-b6c2-4b6cea43dd18","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":299,"box":{"x":170,"y":815,"width":683,"height":9}},{"id":"5dd705a5-0853-4007-b7f3-3270b3e9c9db","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will effectively","page_number":299,"box":{"x":170,"y":828,"width":708,"height":9}},{"id":"b935ab76-d387-49ad-b92d-cc3fddb3903e","block_type":"box","text":"evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is","page_number":299,"box":{"x":170,"y":841,"width":707,"height":9}},{"id":"fa53355a-0e57-4ca0-8451-f83c67a6f3dc","block_type":"box","text":"the core means by which boards can oversee the creation of durable financial value over time. Appropriate risk","page_number":299,"box":{"x":170,"y":853,"width":658,"height":10}},{"id":"45f1f823-5218-4664-ad49-2461cf62bd9e","block_type":"box","text":"oversight of business-relevant and material sustainability-related considerations is a component of a sound governance","page_number":299,"box":{"x":170,"y":866,"width":708,"height":10}},{"id":"50bd61e7-8e05-475a-b7f6-1e13c2b201cf","block_type":"box","text":"framework.","page_number":299,"box":{"x":170,"y":879,"width":65,"height":8}},{"id":"777bf5d4-9514-4294-9629-a631ec8d60b5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":299,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"5762affb-b26b-4186-afa1-43f6f864696e","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":299,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"213a2fcb-671e-43d0-8984-523b09c1b92d","block_type":"box","text":"15","page_number":299,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"27441397-0596-4b89-942d-eeaa00428317","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":299,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"213ab931-e812-4e32-85d1-d7dd96f001f2","block_type":"box","text":"opportunities into their business decision-making and practices. Doing so helps us undertake a more","page_number":300,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"fb8eab8f-7cc8-4b15-acd1-42b387eed3b1","block_type":"box","text":"holistic assessment of a company’s potential financial performance and the likely risk-adjusted returns","page_number":300,"box":{"x":117,"y":102,"width":761,"height":13}},{"id":"1ab8e76c-3f79-47c7-a560-d86e5ebebeaa","block_type":"box","text":"of an investment.","page_number":300,"box":{"x":116,"y":118,"width":133,"height":10}},{"id":"017962de-68ab-4f85-9483-fc8d5647ff2a","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about","page_number":300,"box":{"x":116,"y":145,"width":753,"height":12}},{"id":"0a42f5fd-5b47-40dd-9b27-ea58220001d5","block_type":"box","text":"how a company is managing or disclosing its approach to material sustainability-related risks that may","page_number":300,"box":{"x":117,"y":161,"width":761,"height":12}},{"id":"41a065b0-ba06-4c14-b938-a2d46e050f93","block_type":"box","text":"impact financial returns.","page_number":300,"box":{"x":117,"y":176,"width":181,"height":12}},{"id":"a0cc6aea-45cc-467c-9185-7cfc66082834","block_type":"box","text":"KEY STAKEHOLDERS","page_number":300,"box":{"x":412,"y":209,"width":182,"height":10}},{"id":"9c6feefc-e9b9-4da7-9f61-c49a02ba9a6e","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various","page_number":300,"box":{"x":117,"y":236,"width":727,"height":12}},{"id":"623b0a3c-1916-4a1f-9b8d-5dab6d9303cf","block_type":"box","text":"parties on whom they depend for their success over time. It is for each company to determine their key","page_number":300,"box":{"x":117,"y":252,"width":766,"height":12}},{"id":"6fec83d2-d796-4f62-b69a-d296995c257f","block_type":"box","text":"stakeholders based on what is material to their business and long-term financial performance. For","page_number":300,"box":{"x":116,"y":267,"width":731,"height":12}},{"id":"bd12a36a-7fd4-413a-896d-5b7a4b4f9b3b","block_type":"box","text":"many companies, key stakeholders include employees, business partners (such as suppliers and","page_number":300,"box":{"x":117,"y":283,"width":726,"height":12}},{"id":"392212b9-8a2e-43a1-9aa7-182d492a7cfb","block_type":"box","text":"distributors), clients and consumers, regulators, and the communities in which they operate.","page_number":300,"box":{"x":116,"y":298,"width":687,"height":12}},{"id":"75d4ecbf-fe62-4d71-b419-e5dd3597386c","block_type":"box","text":"Companies that appropriately balance the interests of investors and other stakeholders are, in our","page_number":300,"box":{"x":117,"y":314,"width":730,"height":12}},{"id":"2e5d88e5-f1de-494e-ba20-8631a456a620","block_type":"box","text":"experience, more likely to be financially resilient over time.","page_number":300,"box":{"x":116,"y":329,"width":438,"height":12}},{"id":"35d1a0bc-5c44-4ca9-81b4-80549a869695","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":300,"box":{"x":246,"y":362,"width":513,"height":10}},{"id":"abcf29a1-869e-426d-9323-bd00435bdcd5","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial","page_number":300,"box":{"x":117,"y":389,"width":737,"height":12}},{"id":"83180f2c-61cf-4fb8-8a32-1d3f97daaf10","block_type":"box","text":"objectives. Consistent with the objectives of those investment strategies, our stewardship activity in","page_number":300,"box":{"x":116,"y":405,"width":741,"height":12}},{"id":"72c061b5-f263-4f89-ac8a-186dfd976374","block_type":"box","text":"relation to the holdings in those funds differs in some respects from BAIS’ benchmark guidelines, which","page_number":300,"box":{"x":117,"y":420,"width":771,"height":12}},{"id":"5dc23e22-500e-4974-ae4d-7431e7d19601","block_type":"box","text":"are described above. Specifically, for those funds’ holdings, we look to investee companies to","page_number":300,"box":{"x":116,"y":436,"width":699,"height":12}},{"id":"14816681-2eb7-4070-a149-c93496c9f9be","block_type":"box","text":"demonstrate that they are aligned with a decarbonization pathway that means their business model","page_number":300,"box":{"x":116,"y":451,"width":742,"height":12}},{"id":"8bdabea2-0f2d-4461-8a37-60fe5440b564","block_type":"box","text":"would be viable in a low-carbon economy, i.e., one in which global temperature rise is limited to 1.5°C","page_number":300,"box":{"x":116,"y":467,"width":759,"height":12}},{"id":"c9985e52-bd73-49b9-bd34-93cec6fd5f96","block_type":"box","text":"above pre-industrial levels. In addition, clients in separately managed accounts may instruct BlackRock","page_number":300,"box":{"x":116,"y":482,"width":771,"height":12}},{"id":"7c1fca34-b617-4231-bf5b-ee5532eaea0f","block_type":"box","text":"to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":300,"box":{"x":116,"y":498,"width":698,"height":12}},{"id":"747be07d-7b6c-4db5-86f0-df09c870333a","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable","page_number":300,"box":{"x":116,"y":514,"width":770,"height":11}},{"id":"9281349b-c817-4e0d-885a-d4105dd421fe","block_type":"box","text":"fund board or client.","page_number":300,"box":{"x":116,"y":529,"width":153,"height":9}},{"id":"6b5aacde-88fd-4aca-88f2-785c3b74413e","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services","page_number":300,"box":{"x":116,"y":556,"width":766,"height":12}},{"id":"fe62d840-f2f9-4fec-acb9-e962eb5b919e","block_type":"box","text":"that contribute to real world decarbonization or have a carbon intensive business model and face","page_number":300,"box":{"x":116,"y":571,"width":724,"height":10}},{"id":"3f558d85-037a-4ca5-84fa-bfd8c9f01864","block_type":"box","text":"outsized impacts from the low carbon transition, based on reported and estimated scopes 1, 2, and 3","page_number":300,"box":{"x":116,"y":587,"width":754,"height":12}},{"id":"983412e0-38c1-41ae-8225-f7707f96d901","block_type":"box","text":"greenhouse gas emissions. These companies should provide disclosures that set out their","page_number":300,"box":{"x":116,"y":603,"width":675,"height":12}},{"id":"d43a591b-541c-4c70-8cdc-a07ba5a5f5b8","block_type":"box","text":"governance, strategy, risk management processes and metrics and targets relevant to","page_number":300,"box":{"x":116,"y":618,"width":646,"height":12}},{"id":"0090508d-3f20-48ee-a68a-712ec758d2a2","block_type":"box","text":"decarbonization. It is helpful to investors’ understanding when these disclosures include an explanation","page_number":300,"box":{"x":116,"y":634,"width":770,"height":12}},{"id":"c556494f-61d2-4fa0-a1c7-2a46fec253f2","block_type":"box","text":"of the decarbonization scenarios a company is using in its near- and long-term planning, as well as its","page_number":300,"box":{"x":116,"y":649,"width":760,"height":12}},{"id":"16497253-9cda-4a18-9447-743ae4ff9343","block_type":"box","text":"scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for","page_number":300,"box":{"x":116,"y":665,"width":735,"height":12}},{"id":"117df212-5a2e-4723-967e-6428ced0c3b7","block_type":"box","text":"scope 1 and 2 emissions.","page_number":300,"box":{"x":116,"y":680,"width":188,"height":12}},{"id":"ef4232f9-a170-48a2-ab3c-bd09832a9def","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against","page_number":300,"box":{"x":117,"y":707,"width":739,"height":12}},{"id":"95ae1b95-a181-469e-93df-2a1a5d61ae35","block_type":"box","text":"directors or support for a relevant shareholder proposal if a company does not appear to be adequately","page_number":300,"box":{"x":116,"y":723,"width":766,"height":12}},{"id":"cfe21104-57dc-4009-9420-77b50471a1b9","block_type":"box","text":"acting to address or disclosing material climate-related risks, consistent with the parameters set out in","page_number":300,"box":{"x":116,"y":738,"width":755,"height":12}},{"id":"8ac96b91-9006-494f-aea8-1c5c0a7cea8a","block_type":"box","text":"these climate- and decarbonization-specific guidelines. We may recommend supporting shareholder","page_number":300,"box":{"x":116,"y":754,"width":744,"height":12}},{"id":"f645b1b0-318a-410f-9e82-67b41cd3ee31","block_type":"box","text":"proposals seeking information relevant to a company’s stated low-carbon transition strategy or targets","page_number":300,"box":{"x":117,"y":769,"width":755,"height":12}},{"id":"806e99e5-0fef-45e8-a061-162b66b75566","block_type":"box","text":"that the company does not currently provide and that would be helpful to investment decision-making.","page_number":300,"box":{"x":116,"y":785,"width":753,"height":12}},{"id":"c401e878-bf03-4889-a94e-66fa3ee7b70e","block_type":"box","text":"We would not recommend support for shareholder proposals that seek to constrain board or","page_number":300,"box":{"x":116,"y":800,"width":684,"height":12}},{"id":"dd964e38-f9a4-4f89-a481-7be581131658","block_type":"box","text":"management decision-making or direct specific business or strategic decisions. As under the BAIS","page_number":300,"box":{"x":117,"y":816,"width":730,"height":12}},{"id":"0be71d4e-4314-42a5-b999-bfd188757ee1","block_type":"box","text":"benchmark approach, the active portfolio managers are ultimately responsible for voting consistent","page_number":300,"box":{"x":117,"y":831,"width":737,"height":12}},{"id":"b7b8b6d6-c0cb-4a12-9cbd-0deeb785b450","block_type":"box","text":"with their investment mandate and fund objectives. For the funds and accounts in scope, voting on","page_number":300,"box":{"x":116,"y":847,"width":736,"height":12}},{"id":"0e56ba4f-9d24-4e73-99f8-525b0096f34d","block_type":"box","text":"matters not related to climate risk and the energy transition is undertaken in line with BAIS’ benchmark","page_number":300,"box":{"x":117,"y":862,"width":765,"height":12}},{"id":"c6be0fa2-a67c-4a57-a00b-60f94ccb28fb","block_type":"box","text":"guidelines.","page_number":300,"box":{"x":116,"y":878,"width":85,"height":12}},{"id":"1ee06c21-a3f3-4eb9-88c5-46c4b27bf29d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":300,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"212824fe-0dff-471e-b9b6-6602b4876014","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":300,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"c6a66023-c0b4-4c06-b1c9-53473f2d1656","block_type":"box","text":"16","page_number":300,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"44d4dccb-c982-49b0-bda7-b189067665da","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":300,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8682970c-795d-495a-a7f2-132099804c2c","block_type":"box","text":"APPENDIX 1: HOW WE FULFIL AND OVERSEE OUR INVESTMENT STEWARDSHIP","page_number":301,"box":{"x":171,"y":87,"width":662,"height":10}},{"id":"57d9e68f-521c-43e1-8f57-75a1c15694fc","block_type":"box","text":"RESPONSIBILITIES","page_number":301,"box":{"x":423,"y":102,"width":159,"height":10}},{"id":"047bde21-c48b-4a4f-8e7a-32eea6ef1514","block_type":"box","text":"Oversight","page_number":301,"box":{"x":116,"y":132,"width":83,"height":12}},{"id":"408ecc3e-62f0-4bf6-bd54-4e2c326c8e19","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including","page_number":301,"box":{"x":116,"y":161,"width":764,"height":12}},{"id":"9f2f8de5-cb9a-4bdf-a9dc-3cabaf521fe1","block_type":"box","text":"voting in accordance with the BlackRock Active Investment Stewardship Global Engagement and","page_number":301,"box":{"x":116,"y":177,"width":726,"height":12}},{"id":"fe9455f2-8951-49d9-be8a-d26c6e623e9a","block_type":"box","text":"Voting Guidelines (the “Guidelines”), which require the application of professional judgment and","page_number":301,"box":{"x":116,"y":192,"width":714,"height":12}},{"id":"33406a16-3d06-42d3-a1fe-207b20af7ef2","block_type":"box","text":"consideration of each company’s unique circumstances, as well as input from active investors. BAIS is","page_number":301,"box":{"x":116,"y":208,"width":765,"height":12}},{"id":"20273c97-e9d2-47a9-b076-a007bc6e7870","block_type":"box","text":"independent from BlackRock Investment Stewardship in our engagement and voting activities,","page_number":301,"box":{"x":117,"y":223,"width":704,"height":12}},{"id":"26594dbd-66ce-4f4c-81e0-b28ae96e8aa8","block_type":"box","text":"reporting lines, and oversight.","page_number":301,"box":{"x":117,"y":239,"width":224,"height":12}},{"id":"71408b7d-c518-4bd0-b429-97290f108728","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders","page_number":301,"box":{"x":116,"y":268,"width":765,"height":12}},{"id":"c5877a17-570b-49a8-a6f6-41173fddae4d","block_type":"box","text":"in BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s","page_number":301,"box":{"x":117,"y":283,"width":742,"height":12}},{"id":"bacc80ab-4e49-4685-8255-deab33ad5320","block_type":"box","text":"approach to investment stewardship on non-index equity investment strategies. The Group may advise","page_number":301,"box":{"x":116,"y":299,"width":769,"height":12}},{"id":"eba38d05-6d52-4b51-b56d-d9100ad47261","block_type":"box","text":"on and review amendments to BAIS’ policies and practices. It does not determine voting decisions,","page_number":301,"box":{"x":116,"y":314,"width":739,"height":12}},{"id":"1cbad565-b076-4766-83fc-49d92577f17a","block_type":"box","text":"which are the responsibility of BAIS and the relevant active equity investors.","page_number":301,"box":{"x":116,"y":330,"width":568,"height":12}},{"id":"bceb2c6c-f6e5-4ce9-a88a-cbf8e4ba0ed5","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues,","page_number":301,"box":{"x":117,"y":359,"width":721,"height":12}},{"id":"ff5a8da4-929b-46f6-b072-2e7a01e53a4e","block_type":"box","text":"executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a","page_number":301,"box":{"x":116,"y":375,"width":757,"height":12}},{"id":"8ee1bf7b-e1f6-47a0-8644-7451c452e70e","block_type":"box","text":"manner consistent with the Guidelines. BAIS also conducts research on corporate governance issues","page_number":301,"box":{"x":117,"y":390,"width":757,"height":12}},{"id":"e30e21c0-f09b-4aa0-aa99-160171755f0e","block_type":"box","text":"and participates in industry discussions to contribute to and keep abreast of important developments in","page_number":301,"box":{"x":116,"y":406,"width":768,"height":12}},{"id":"3767dc22-95eb-4657-a210-4b4501f3f5ea","block_type":"box","text":"the corporate governance field. BAIS may use third parties for certain of the foregoing activities and","page_number":301,"box":{"x":116,"y":421,"width":744,"height":12}},{"id":"7e93c62c-645b-4365-936f-623654b91eb5","block_type":"box","text":"performs oversight of those third parties (see “Use and oversight of third-party vote services providers”","page_number":301,"box":{"x":117,"y":437,"width":765,"height":12}},{"id":"64c543c4-02b6-4949-b1f8-6277a68f2c17","block_type":"box","text":"below).","page_number":301,"box":{"x":117,"y":452,"width":58,"height":12}},{"id":"2b56b1ac-1cf2-4640-a871-9b3f520e8b20","block_type":"box","text":"Voting guidelines and vote execution","page_number":301,"box":{"x":116,"y":482,"width":302,"height":11}},{"id":"1d2fd5a7-0d80-443f-9086-4dcb16b98c02","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the","page_number":301,"box":{"x":117,"y":511,"width":735,"height":12}},{"id":"bd87b708-9a63-4501-8925-23f28cf1857a","block_type":"box","text":"voting items submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have","page_number":301,"box":{"x":116,"y":526,"width":728,"height":12}},{"id":"5fc38598-cf06-4a5f-b073-1c47c753e386","block_type":"box","text":"voting authority. BlackRock votes (or refrains from voting) for each Fund for which we have voting","page_number":301,"box":{"x":116,"y":542,"width":730,"height":12}},{"id":"3f586102-e6c3-4115-9955-c42ba7f725bf","block_type":"box","text":"authority based on our evaluation of the alignment of the voting items with the long-term economic","page_number":301,"box":{"x":116,"y":557,"width":734,"height":12}},{"id":"1139eb30-3e10-42cc-8797-29b3b8c7919d","block_type":"box","text":"interests of our clients, in the exercise of our independent business judgment, and without regard to the","page_number":301,"box":{"x":117,"y":573,"width":771,"height":12}},{"id":"5b84ddad-6f56-413a-90b3-619af7df56bc","block_type":"box","text":"relationship of the issuer (or any shareholder proponent or dissident shareholder) to the Fund, the","page_number":301,"box":{"x":117,"y":588,"width":730,"height":12}},{"id":"a61c0ffa-ec16-44ce-9be1-bf96b9d4e934","block_type":"box","text":"Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":301,"box":{"x":117,"y":604,"width":754,"height":12}},{"id":"8cf6fb3b-e777-4cc8-8c7a-600c721283c9","block_type":"box","text":"management policies and procedures,” below).","page_number":301,"box":{"x":117,"y":619,"width":353,"height":12}},{"id":"a2c8caa3-e0e0-4def-97bf-60a18d90ac7e","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the","page_number":301,"box":{"x":116,"y":648,"width":759,"height":13}},{"id":"f2ccdacc-200d-4015-8a85-aadfee87978d","block_type":"box","text":"Guidelines, although portfolio managers have the right to vote differently on their holdings if they","page_number":301,"box":{"x":117,"y":664,"width":713,"height":12}},{"id":"53f228b7-55e7-4c66-acad-8dd5056fa85c","block_type":"box","text":"determine doing so is more aligned with the investment objective and financial interests of clients","page_number":301,"box":{"x":116,"y":679,"width":719,"height":13}},{"id":"675245f5-1c0c-4695-9e41-44f59bd7105f","block_type":"box","text":"invested in the funds they manage.","page_number":301,"box":{"x":117,"y":695,"width":258,"height":12}},{"id":"1de04553-30c7-49ac-b489-875e52e1e367","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case","page_number":301,"box":{"x":116,"y":724,"width":726,"height":12}},{"id":"ee1cae76-14f7-4ed4-90c2-1003072cff16","block_type":"box","text":"basis, in the context of the individual circumstances of each company and the specific issue under","page_number":301,"box":{"x":117,"y":740,"width":728,"height":12}},{"id":"f4f3c5d1-01e9-403c-9df2-829f5c219b33","block_type":"box","text":"review. As such, the Guidelines do not indicate how BAIS will vote in every instance. Rather, they","page_number":301,"box":{"x":117,"y":755,"width":723,"height":12}},{"id":"1c6bc6b0-d0c9-457e-a16b-af7f63f1689a","block_type":"box","text":"reflect our view about corporate governance issues generally, and provide insight into how we typically","page_number":301,"box":{"x":117,"y":771,"width":761,"height":12}},{"id":"791f51fb-d0c1-4086-8134-44ee48ea2e80","block_type":"box","text":"approach issues that are commonly put to a shareholder vote. The Guidelines are reviewed annually","page_number":301,"box":{"x":116,"y":786,"width":747,"height":12}},{"id":"223ea357-6179-49b1-9a11-197333fab332","block_type":"box","text":"and updated as necessary to reflect changes in market practices, developments in corporate","page_number":301,"box":{"x":116,"y":802,"width":688,"height":12}},{"id":"23aac63b-6712-4f99-9bc1-e7a7e7c1735d","block_type":"box","text":"governance and feedback from companies and clients. 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We are not supportive of impediments to the exercise of voting rights","page_number":302,"box":{"x":116,"y":165,"width":746,"height":12}},{"id":"7b15221d-2bcb-48c0-8733-d612e711774c","block_type":"box","text":"such as share-blocking or overly burdensome administrative requirements.","page_number":302,"box":{"x":116,"y":180,"width":560,"height":12}},{"id":"a3d63bfe-f8af-4c15-bc7c-b1f9febf122f","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine","page_number":302,"box":{"x":117,"y":211,"width":759,"height":12}},{"id":"ba67c8d7-0792-4f3d-b980-475dca48e1ba","block_type":"box","text":"that it is generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full","page_number":302,"box":{"x":116,"y":226,"width":723,"height":12}},{"id":"5148cee1-fa53-4db0-9947-963bbe5b3e63","block_type":"box","text":"allocation) if the costs (including but not limited to opportunity costs associated with share-blocking","page_number":302,"box":{"x":116,"y":242,"width":737,"height":12}},{"id":"28008c9f-8cc3-43e0-a1cc-a60048a38f06","block_type":"box","text":"constraints) associated with exercising a vote are expected to outweigh the benefit the client would","page_number":302,"box":{"x":116,"y":257,"width":739,"height":12}},{"id":"9776554f-fd27-4470-9bf2-9047fab58aaa","block_type":"box","text":"derive by voting on the proposal.","page_number":302,"box":{"x":116,"y":273,"width":248,"height":12}},{"id":"be4e6cb4-338b-48ab-b0e0-bea2a91364fe","block_type":"box","text":"Voting Choice","page_number":302,"box":{"x":116,"y":303,"width":118,"height":13}},{"id":"662771dd-d43b-4694-9145-a781279feb1b","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to","page_number":302,"box":{"x":117,"y":334,"width":733,"height":12}},{"id":"ab32629d-f20d-465f-bdb7-1d50aec814ce","block_type":"box","text":"participate in the proxy voting process where legally and operationally viable.","page_number":302,"box":{"x":117,"y":350,"width":575,"height":12}},{"id":"bc5a30be-f78f-4d9a-ab61-0d4756a40774","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in","page_number":302,"box":{"x":116,"y":380,"width":748,"height":12}},{"id":"683a2fe9-feb5-4466-92c5-217ddfa172f2","block_type":"box","text":"the U.S., UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In","page_number":302,"box":{"x":116,"y":396,"width":716,"height":12}},{"id":"83a497c4-d03c-4d16-b620-3ac5b100fcc6","block_type":"box","text":"addition, institutional clients in separately managed accounts (SMAs) are eligible for BlackRock Voting","page_number":302,"box":{"x":116,"y":411,"width":764,"height":12}},{"id":"e7035ae5-7ed9-4c28-a255-d74d4d19da5e","block_type":"box","text":"Choice regardless of their investment strategies.","page_number":302,"box":{"x":117,"y":427,"width":357,"height":12}},{"id":"6d887048-6b20-48a9-91b4-6cbb924716bd","block_type":"box","text":"12","page_number":302,"box":{"x":477,"y":427,"width":11,"height":6}},{"id":"97a48695-6df3-4b6a-964e-591c9d00cf58","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently","page_number":302,"box":{"x":116,"y":457,"width":740,"height":13}},{"id":"f4c86667-8890-4276-98f5-5d1a8bc0ddb8","block_type":"box","text":"depending on whether our clients have authorized BAIS to vote on their behalf, have authorized","page_number":302,"box":{"x":116,"y":473,"width":715,"height":12}},{"id":"a842149d-9dad-4e52-97ec-2c6ff6517b31","block_type":"box","text":"BlackRock to vote in accordance with a third-party policy, or have elected to vote shares in accordance","page_number":302,"box":{"x":117,"y":489,"width":769,"height":12}},{"id":"a6e4b721-40ac-4ed7-a3a2-eb9ffe3ea18b","block_type":"box","text":"with their own policy. Our clients have greater control over proxy voting because of Voting Choice.","page_number":302,"box":{"x":116,"y":504,"width":727,"height":12}},{"id":"52855bd1-a9c5-4e3f-aa59-4fd88d58cef5","block_type":"box","text":"13","page_number":302,"box":{"x":846,"y":504,"width":10,"height":6}},{"id":"bb7f3845-8750-410d-beaa-50396cad0a90","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":302,"box":{"x":117,"y":535,"width":452,"height":12}},{"id":"6ce73b3e-1093-436a-813b-0b9dd47d398d","block_type":"box","text":"Third-party vote services providers – or proxy research firms – provide research and recommendations","page_number":302,"box":{"x":116,"y":565,"width":769,"height":12}},{"id":"708272f4-ca41-4bba-975c-bc8bce91063d","block_type":"box","text":"on proxy votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services","page_number":302,"box":{"x":116,"y":581,"width":746,"height":12}},{"id":"e4b46663-4ab1-42ef-951c-50a6d0a3c054","block_type":"box","text":"provider ISS and leverages its online platform to supply research and support voting, record keeping,","page_number":302,"box":{"x":117,"y":596,"width":754,"height":12}},{"id":"ca76ddfc-1ba6-4c0f-826a-31c6548d61d4","block_type":"box","text":"and reporting processes. We also use Glass Lewis’ research and analysis as an input into our voting","page_number":302,"box":{"x":116,"y":612,"width":752,"height":12}},{"id":"8e848cf0-d6f9-4617-b6bb-5a0cfdc8fb8d","block_type":"box","text":"process. It is important to note that, although proxy research firms provide important data and analysis,","page_number":302,"box":{"x":117,"y":627,"width":768,"height":12}},{"id":"712b3eb9-9389-4f72-b88c-be1b7999fdcc","block_type":"box","text":"BAIS does not rely solely on their information or follow their voting recommendations. A company’s","page_number":302,"box":{"x":117,"y":643,"width":738,"height":12}},{"id":"f37c8dad-a0d6-46b9-a327-23897d15321e","block_type":"box","text":"disclosures, our engagements and voting, investment colleagues’ insights and our Guidelines are","page_number":302,"box":{"x":116,"y":658,"width":727,"height":12}},{"id":"35581bf6-8c20-46f5-be40-72b2039aabbd","block_type":"box","text":"important inputs into our voting decisions on behalf of clients.","page_number":302,"box":{"x":117,"y":674,"width":452,"height":12}},{"id":"909767bc-7100-4cff-9cdb-d40a9f0fe6e3","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to","page_number":302,"box":{"x":117,"y":705,"width":722,"height":12}},{"id":"71b9eb22-42de-4481-9e51-8a6835bcf41a","block_type":"box","text":"streamline the voting process by making voting recommendations based on BAIS’ Guidelines when the","page_number":302,"box":{"x":116,"y":720,"width":765,"height":12}},{"id":"c2af0e4d-76bb-4f74-978b-873f8e2c78d2","block_type":"box","text":"items on a shareholder meeting agenda are routine. Agenda items that are not routine are referred","page_number":302,"box":{"x":117,"y":736,"width":730,"height":12}},{"id":"9aecd0b0-f9b5-4168-b710-55c3f2f2f94a","block_type":"box","text":"back to BAIS to assess, escalate as necessary to the relevant portfolio managers and vote. BAIS","page_number":302,"box":{"x":117,"y":751,"width":719,"height":12}},{"id":"ed4c5558-9d64-49d3-b953-a901c5c7cdd4","block_type":"box","text":"reviews and can override the recommendations of the vote services provider at any time prior to the","page_number":302,"box":{"x":117,"y":767,"width":739,"height":12}},{"id":"aaeecacd-fbeb-4b4d-af57-71c182bfa198","block_type":"box","text":"vote deadline. Both BAIS and the vote services provider actively monitor securities filings, research","page_number":302,"box":{"x":116,"y":782,"width":735,"height":12}},{"id":"1035ec77-f61f-4c33-b915-232ce1716881","block_type":"box","text":"reports, company announcements, and direct communications from companies to ensure awareness","page_number":302,"box":{"x":117,"y":798,"width":748,"height":12}},{"id":"ffaabb67-842f-439a-8675-493988a277bb","block_type":"box","text":"of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":302,"box":{"x":116,"y":813,"width":661,"height":12}},{"id":"66fa1b3d-d421-417e-8cd3-0de240384460","block_type":"box","text":"12","page_number":302,"box":{"x":144,"y":838,"width":8,"height":5}},{"id":"6f631239-afd9-444d-89af-2c961001e8fe","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the","page_number":302,"box":{"x":170,"y":838,"width":679,"height":10}},{"id":"b800a7ef-b0bf-48fc-96cf-5efb79312068","block_type":"box","text":"policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast","page_number":302,"box":{"x":170,"y":851,"width":695,"height":10}},{"id":"0626f896-5aff-4576-9007-945bacf69a3c","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":302,"box":{"x":170,"y":864,"width":292,"height":10}},{"id":"0e6bf29a-a9b5-42aa-bb81-784f2962e90e","block_type":"box","text":"13","page_number":302,"box":{"x":144,"y":880,"width":8,"height":5}},{"id":"89755514-6a84-4689-ad26-3edb9a6e71c9","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":302,"box":{"x":171,"y":880,"width":678,"height":9}},{"id":"c75f51cc-2990-431a-9c6e-0a008a9db2bf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":302,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"577a9e21-b603-4bb9-a99d-f3cfdb10ab44","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":302,"box":{"x":530,"y":909,"width":324,"height":12}},{"id":"b2083257-81c0-4fd2-9fa5-325269fc8d2c","block_type":"box","text":"18","page_number":302,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"993c2fbf-6002-4db8-b53a-3bf2ebf30f4c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":302,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d0c52efd-e1c2-4072-959b-5156c9a01d6d","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are","page_number":303,"box":{"x":117,"y":87,"width":751,"height":12}},{"id":"2d3d1209-4687-48aa-958c-01ef9f2fd513","block_type":"box","text":"meeting our service level expectations and have effective policies and procedures in place to manage","page_number":303,"box":{"x":117,"y":102,"width":759,"height":13}},{"id":"e8269ce6-a223-46a0-ba34-5cebb1604c4d","block_type":"box","text":"potential conflicts of interest. Our oversight of service providers includes regular meetings with client","page_number":303,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"60791440-a83d-48e4-8622-85add2f582da","block_type":"box","text":"service teams, systematic monitoring of vendor operations, as well as annual due diligence meetings in","page_number":303,"box":{"x":116,"y":134,"width":771,"height":12}},{"id":"de19b92f-b6cf-4633-b099-6c75822804d9","block_type":"box","text":"accordance with BlackRock’s firmwide policies.","page_number":303,"box":{"x":116,"y":149,"width":355,"height":12}},{"id":"2a39b5ff-fa37-43ef-8773-73f376374c95","block_type":"box","text":"Conflicts management policies and procedures","page_number":303,"box":{"x":116,"y":179,"width":383,"height":12}},{"id":"140aea00-f3c1-4c56-af30-18ea0cb96415","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy","page_number":303,"box":{"x":117,"y":209,"width":734,"height":12}},{"id":"3705f97a-8b41-423c-9031-492c56c5ab7f","block_type":"box","text":"voting activity. Such influence might stem from any relationship between the investee company (or any","page_number":303,"box":{"x":116,"y":225,"width":767,"height":12}},{"id":"abb3a43e-8b90-4104-a855-f4bd87fe40d7","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a","page_number":303,"box":{"x":116,"y":240,"width":743,"height":12}},{"id":"78fbfa4d-9846-4c6a-b71a-444b7b9dd7d3","block_type":"box","text":"Fund’s affiliates, or BlackRock employees. 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Through stewardship, we assess how companies","page_number":312,"box":{"x":117,"y":149,"width":745,"height":12}},{"id":"e33a26d5-b28b-480b-a57e-9e6adb8ba345","block_type":"box","text":"are creating long-term financial value to serve our clients, many of whom are saving for long-term","page_number":312,"box":{"x":116,"y":165,"width":728,"height":12}},{"id":"e045effa-b863-471d-8d9f-0c68cc4264ad","block_type":"box","text":"goals, such as retirement. Our stewardship program – including when engaging with companies and","page_number":312,"box":{"x":116,"y":180,"width":749,"height":12}},{"id":"17c9f086-925f-4974-af97-1ae29d20507f","block_type":"box","text":"voting at shareholder meetings on behalf of clients – is conducted from a long-term investor","page_number":312,"box":{"x":116,"y":196,"width":685,"height":12}},{"id":"5bb98983-4901-4d65-a883-bf9d4773a527","block_type":"box","text":"perspective and takes a financial materiality-based approach, focused solely on advancing clients’","page_number":312,"box":{"x":117,"y":211,"width":732,"height":12}},{"id":"1454c5da-cf5a-43ac-a7ca-f11c299f1c5f","block_type":"box","text":"long-term financial interests.","page_number":312,"box":{"x":117,"y":227,"width":214,"height":12}},{"id":"1e7105b6-456d-43ba-9908-87ac136a5aee","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen","page_number":312,"box":{"x":117,"y":258,"width":753,"height":12}},{"id":"930937d8-6f8a-4ac2-ae13-73573e9c7794","block_type":"box","text":"our understanding of a company’s business model, including how they are overseeing material","page_number":312,"box":{"x":116,"y":273,"width":708,"height":12}},{"id":"882b0363-b0ca-421d-84c3-f2b7185ad1ae","block_type":"box","text":"business risks and opportunities over time, and to help inform our voting on behalf of clients.","page_number":312,"box":{"x":117,"y":289,"width":689,"height":12}},{"id":"d93d97a0-e8cd-43bc-88eb-d6c2285a41f0","block_type":"box","text":"Engagements provide companies with the opportunity to share their perspectives on topics that, in BIS’","page_number":312,"box":{"x":117,"y":304,"width":769,"height":12}},{"id":"cf5d7a44-0825-4683-8d59-cf1ae910dce4","block_type":"box","text":"experience, impact the long-term financial returns BlackRock’s clients depend on to meet their financial","page_number":312,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"99ea6911-719b-4f22-aa6b-f1ebcaff8b05","block_type":"box","text":"goals.","page_number":312,"box":{"x":116,"y":335,"width":49,"height":12}},{"id":"28fd5a1c-0e9a-4ce0-8f1c-db8d5a0ac7d9","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":312,"box":{"x":116,"y":366,"width":713,"height":12}},{"id":"a21e22c3-ced7-4bc6-846c-ea0b3803a72f","block_type":"box","text":"corporate governance. As a fiduciary, BlackRock is legally required to make proxy voting","page_number":312,"box":{"x":116,"y":382,"width":663,"height":12}},{"id":"e56d1097-da76-4cb9-b754-cd0574e75119","block_type":"box","text":"determinations in a manner that is consistent with the investment objectives of clients who have","page_number":312,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"b092c941-afd0-4548-9d18-4db8eb60da34","block_type":"box","text":"delegated voting authority to us. BIS’ Benchmark Policies, and the vote decisions made consistent with","page_number":312,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"b68a47e4-dcd5-47dc-937d-51c5ad44e7a8","block_type":"box","text":"those policies, reflect our reasonable and independent judgment of what is in the long-term financial","page_number":312,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"37bbc3e6-5831-425a-8b0f-2478789a550b","block_type":"box","text":"interests of clients. Our vote decisions are often informed by several factors, including in-depth","page_number":312,"box":{"x":117,"y":444,"width":706,"height":12}},{"id":"9452c8c9-669d-4859-af74-17c577ae95a6","block_type":"box","text":"analysis of company disclosures, comparisons against industry peers, third-party research, and, where","page_number":312,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"ff4afac6-c712-4b1f-93ce-aaf3ce5cdf05","block_type":"box","text":"appropriate, engagement with companies.","page_number":312,"box":{"x":116,"y":475,"width":318,"height":12}},{"id":"8c7fc271-b70b-4737-8877-978318c2b305","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at","page_number":312,"box":{"x":117,"y":506,"width":721,"height":12}},{"id":"4925649a-8f8a-463a-9b62-3a93ee9c7051","block_type":"box","text":"companies which have sound corporate governance and deliver strong financial returns over time.","page_number":312,"box":{"x":116,"y":521,"width":734,"height":12}},{"id":"f505401f-6c3e-4ce2-8d3c-c10a09b9f014","block_type":"box","text":"When we determine it is in our clients’ financial interests to convey concern to companies through","page_number":312,"box":{"x":116,"y":537,"width":729,"height":12}},{"id":"5a3e823c-bc00-4bd5-aa36-77f9807666ce","block_type":"box","text":"voting, we may do so in two forms: we might not support the election of directors or other management","page_number":312,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"24a7989d-ce89-427a-a4c6-02a64f92ce5a","block_type":"box","text":"proposals, or we might not support management’s voting recommendation on a shareholder proposal.","page_number":312,"box":{"x":117,"y":568,"width":761,"height":12}},{"id":"beff0e88-a30e-41aa-9440-44979788617a","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":312,"box":{"x":401,"y":606,"width":202,"height":10}},{"id":"ff326716-7e3a-469a-9724-8a6b71469839","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights","page_number":312,"box":{"x":117,"y":637,"width":762,"height":12}},{"id":"4fd20069-1bc0-4003-aaf8-24869f1b217b","block_type":"box","text":"attached to shareholding in most markets, as established by corporate laws, regulations, and listing","page_number":312,"box":{"x":116,"y":653,"width":743,"height":12}},{"id":"0f398f5d-8e95-409d-bcf1-d23f1ddd8a38","block_type":"box","text":"rules.","page_number":312,"box":{"x":117,"y":669,"width":38,"height":9}},{"id":"52cb887a-d6fb-4b8c-954c-12b6210777b1","block_type":"box","text":"3","page_number":312,"box":{"x":157,"y":669,"width":5,"height":6}},{"id":"696092dd-4bd5-4b7b-b70e-173fbc2a3fd7","block_type":"box","text":"For example, in most markets, shareholders have the right to:","page_number":312,"box":{"x":169,"y":669,"width":456,"height":11}},{"id":"14351e5b-afc5-417e-8580-b6811b4eeaed","block_type":"box","text":"• Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend","page_number":312,"box":{"x":117,"y":699,"width":763,"height":12}},{"id":"e1ead4c5-f8c1-4704-99a4-9a2855307dae","block_type":"box","text":"the corporate charter or bylaws.","page_number":312,"box":{"x":150,"y":715,"width":235,"height":12}},{"id":"1f9a40fb-fc4c-48d5-9a65-6574319c3219","block_type":"box","text":"• Vote on key board decisions that are material to the protection of their investment, including but","page_number":312,"box":{"x":117,"y":738,"width":742,"height":12}},{"id":"80025426-8235-4345-ba3d-f1898c4abcb6","block_type":"box","text":"not limited to, changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":312,"box":{"x":150,"y":754,"width":688,"height":12}},{"id":"7eaf0883-1854-4133-bcff-8caa1db3281d","block_type":"box","text":"• Access sufficient and timely information on governance, strategic, and business matters – where","page_number":312,"box":{"x":117,"y":777,"width":750,"height":12}},{"id":"cd91edcf-442c-4387-add5-4ba8675400e1","block_type":"box","text":"such matters are material – to make informed decisions.","page_number":312,"box":{"x":150,"y":792,"width":416,"height":10}},{"id":"49ac2392-f00a-4539-9b25-1bf138c2c60c","block_type":"box","text":"3","page_number":312,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"59e6bd05-092b-419e-ad26-22fba694455d","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":312,"box":{"x":171,"y":854,"width":682,"height":9}},{"id":"a2c1b8e4-b9b4-45dc-91fb-e716251f60b0","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":312,"box":{"x":170,"y":867,"width":651,"height":9}},{"id":"497defc7-f0de-4104-a889-1bdc0ef58b83","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":312,"box":{"x":170,"y":880,"width":538,"height":9}},{"id":"b017ba39-c74d-4c5c-85ab-edd0c44ed12c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":312,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"74236b94-bac7-496f-8c72-7cef09c5e5e1","block_type":"box","text":"Global Principles |","page_number":312,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"cf02d749-f1cb-4203-b9c7-1f01ef12369a","block_type":"box","text":"4","page_number":312,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"45f7d36f-7c87-430c-ad37-b87092085538","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":312,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"124d06b5-10d2-4a6b-a6de-99434ab38934","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":313,"box":{"x":387,"y":87,"width":231,"height":10}},{"id":"088f9835-cfba-403f-9b49-217b06c60b5a","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that","page_number":313,"box":{"x":117,"y":118,"width":700,"height":12}},{"id":"5e7b3ea1-31ec-447b-9923-2725784b42e0","block_type":"box","text":"contribute to a company’s ability to create long-term financial value for shareholders. These are topics","page_number":313,"box":{"x":116,"y":134,"width":761,"height":12}},{"id":"c5ea964d-3479-4d93-b6e4-ac3684d2e47f","block_type":"box","text":"that shareholders may have the ability to vote on at shareholder meetings. These areas include:","page_number":313,"box":{"x":116,"y":149,"width":717,"height":12}},{"id":"e586378b-1f22-4f3e-a794-2199d90ad9bd","block_type":"box","text":"• Boards and directors","page_number":313,"box":{"x":117,"y":180,"width":192,"height":10}},{"id":"6fb9a743-6127-43e7-9a53-651956245323","block_type":"box","text":"• Auditors and audit-related issues","page_number":313,"box":{"x":117,"y":203,"width":282,"height":10}},{"id":"f30dfad3-641a-439f-bb62-f62c7197572f","block_type":"box","text":"• Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":313,"box":{"x":117,"y":227,"width":635,"height":12}},{"id":"35264d6f-205f-4a62-b1f8-0a07f72c5ef0","block_type":"box","text":"• Executive compensation","page_number":313,"box":{"x":117,"y":250,"width":219,"height":12}},{"id":"09a91f51-7673-4760-8bce-0095e5244bdb","block_type":"box","text":"• Shareholder protections and other significant corporate governance matters","page_number":313,"box":{"x":117,"y":273,"width":600,"height":12}},{"id":"519b1f89-0b25-41a9-8e84-7605bc290f69","block_type":"box","text":"• Shareholder proposals","page_number":313,"box":{"x":117,"y":296,"width":206,"height":12}},{"id":"16b53356-a55a-4bed-af28-20b066216f8c","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking","page_number":313,"box":{"x":116,"y":327,"width":744,"height":12}},{"id":"16d7a2c0-7f89-4952-a988-87e33b9e5d1c","block_type":"box","text":"into consideration a number of company-specific factors, including the sector, market, and business","page_number":313,"box":{"x":117,"y":343,"width":744,"height":12}},{"id":"2c4551fb-776d-48bb-ada0-e0339e703aa6","block_type":"box","text":"environment within which companies operate.","page_number":313,"box":{"x":116,"y":358,"width":345,"height":12}},{"id":"fd92197b-baca-4cfd-828d-101683739164","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance","page_number":313,"box":{"x":116,"y":389,"width":761,"height":12}},{"id":"19f2e9a4-193e-4723-9629-3be785c5ba7f","block_type":"box","text":"standards in their domestic market at a minimum, and we ask that, if they do not, they explain how","page_number":313,"box":{"x":116,"y":405,"width":736,"height":12}},{"id":"51ae4204-ff2f-4a73-9dc6-8e51cd569259","block_type":"box","text":"their approach better supports durable, long-term financial value creation. Our regional voting","page_number":313,"box":{"x":116,"y":420,"width":698,"height":12}},{"id":"41cc7be0-73d1-48a6-90e1-8eb6238fe8f2","block_type":"box","text":"guidelines explain how the BIS Global Principles inform our voting decisions in relation to common","page_number":313,"box":{"x":116,"y":436,"width":735,"height":12}},{"id":"b213ebb2-aff1-4873-9ce7-6890e2f1327c","block_type":"box","text":"ballot items for shareholder meetings in those markets.","page_number":313,"box":{"x":117,"y":451,"width":406,"height":12}},{"id":"9a71041c-b8a1-4502-9e62-61137d69b777","block_type":"box","text":"4","page_number":313,"box":{"x":525,"y":451,"width":5,"height":7}},{"id":"1cafd8eb-3943-4e29-a93f-52a3a5274b3a","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":313,"box":{"x":392,"y":490,"width":221,"height":10}},{"id":"60adbee9-5827-4c3c-8e15-56e60819d3b0","block_type":"box","text":"Oversight role of the board","page_number":313,"box":{"x":116,"y":521,"width":221,"height":12}},{"id":"5e0139af-839e-4dc2-b9d1-5f37fcb27121","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with","page_number":313,"box":{"x":117,"y":552,"width":676,"height":12}},{"id":"2fa61db0-a5f7-49a8-b6f3-bbf47e917fcf","block_type":"box","text":"professional characteristics relevant to a company’s business enhance the board’s ability to add long","page_number":313,"box":{"x":117,"y":568,"width":753,"height":12}},{"id":"3fcffa2f-9d64-43c0-b969-424f42b55bd8","block_type":"box","text":"term financial value and serve as the voice of shareholders in board discussions. In our view, a strong","page_number":313,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"82740ac0-074c-4e62-86ee-dd238253787f","block_type":"box","text":"board gives a company a competitive advantage, providing valuable oversight and contributing to the","page_number":313,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"8c24f899-2399-47b6-a857-30f94aad390c","block_type":"box","text":"most important management decisions that support long-term financial performance.","page_number":313,"box":{"x":117,"y":614,"width":632,"height":12}},{"id":"546e2fbd-dc9d-4215-86f6-2e63b8d80e6e","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors.","page_number":313,"box":{"x":117,"y":645,"width":768,"height":12}},{"id":"5a4b785e-e124-4a22-857d-b969973da347","block_type":"box","text":"We engage, as necessary, with members of the board’s nominating and/or governance committee to","page_number":313,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"00d47b63-2138-491e-952c-040971dbc441","block_type":"box","text":"assess whether governance practices and board composition are effective given a company’s","page_number":313,"box":{"x":116,"y":676,"width":696,"height":12}},{"id":"62abdaf1-3af1-45b0-943d-ff434883c904","block_type":"box","text":"business model, sector, market, and the business environment in which a company is operating.","page_number":313,"box":{"x":117,"y":692,"width":713,"height":12}},{"id":"875f28ec-680d-469a-b98a-b375822d4d99","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and","page_number":313,"box":{"x":116,"y":723,"width":730,"height":12}},{"id":"148d1ee8-91b4-4d06-a536-ea314c8d51e3","block_type":"box","text":"effective governance mechanisms that supports its oversight of the company’s strategy and","page_number":313,"box":{"x":116,"y":738,"width":679,"height":12}},{"id":"938244cb-0ead-4d7a-805c-2b1537820dc9","block_type":"box","text":"operations, consistent with the long-term financial interests of investors. This includes having clear","page_number":313,"box":{"x":116,"y":754,"width":731,"height":12}},{"id":"7f24ee0d-6a87-4dfb-a1b2-aa8027ddd321","block_type":"box","text":"descriptions of the role of the board and the committees of the board and how directors engage with","page_number":313,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"cc3365f0-c57b-44e9-8404-38c48b83c26b","block_type":"box","text":"and oversee management, as well as disclosure of material risks that may affect a company’s long","page_number":313,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"0ed8c037-513a-4365-92e1-1406343f17a4","block_type":"box","text":"term strategy and how management is effectively identifying, managing, and mitigating such risks.","page_number":313,"box":{"x":116,"y":800,"width":726,"height":12}},{"id":"a8855d92-2c65-4c13-9f4b-a96eb982ce6b","block_type":"box","text":"4","page_number":313,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"95f83ce7-f27d-4f08-9ddc-2f39ab0d95a3","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market, generally","page_number":313,"box":{"x":170,"y":841,"width":702,"height":9}},{"id":"88345cec-e767-470d-bb05-bcc5fa40cf73","block_type":"box","text":"accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives, amongst other","page_number":313,"box":{"x":170,"y":854,"width":712,"height":9}},{"id":"8a9be0c6-a270-4a5b-a342-161b52074c1a","block_type":"box","text":"factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote operations (including","page_number":313,"box":{"x":170,"y":867,"width":688,"height":9}},{"id":"85d69e6b-a779-4833-8fb1-0ed5eed6e3a0","block_type":"box","text":"maintaining records of votes cast) in a manner consistent with the relevant regional voting guidelines.","page_number":313,"box":{"x":170,"y":880,"width":600,"height":9}},{"id":"907e2f35-0eb3-481f-b002-c89354b14d70","block_type":"box","text":"BlackRock Investment Stewardship","page_number":313,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"75ec756c-552c-434f-b8cb-884082a7877c","block_type":"box","text":"Global Principles |","page_number":313,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"1cf75f9f-203c-4cfd-a1e9-c22ee99a6d59","block_type":"box","text":"5","page_number":313,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"99712789-be57-46f5-9d20-3281801e5008","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":313,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"080cfc9f-f29b-4687-b119-94e82fe00c5e","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should","page_number":314,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"3934fd72-63d1-49de-93d1-b74c017bfbca","block_type":"box","text":"assess its implementation is central to our approach. If any strategic targets are significantly missed or","page_number":314,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"0b464f0b-16a5-4ad2-b01b-dae4d0628715","block_type":"box","text":"materially restated, we find it helpful when company disclosures provide a detailed explanation of the","page_number":314,"box":{"x":117,"y":118,"width":753,"height":12}},{"id":"8a2d6f12-527d-4030-bf24-24d126d64488","block_type":"box","text":"changes and an indication of the board’s role in reviewing the revised targets. We look to the board to","page_number":314,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"31ce7311-ca0d-4c86-9901-95eda1783f41","block_type":"box","text":"articulate the effectiveness of these mechanisms in overseeing the management of business risks and","page_number":314,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"40f5fc88-9a52-43b9-8e17-a2877554cae1","block_type":"box","text":"opportunities and the fulfillment of the company’s strategy.","page_number":314,"box":{"x":116,"y":165,"width":439,"height":12}},{"id":"5e439440-22b2-4144-9a77-a4de211f52d3","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these","page_number":314,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"46a1136d-0e71-4d88-ad8b-9dcb0ee880d3","block_type":"box","text":"corporate governance and risk oversight responsibilities, we may consider not supporting the election","page_number":314,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"297cce04-4b6e-465e-b56d-758a17ba3a28","block_type":"box","text":"of directors who, in our assessment, have particular responsibility for the issues.","page_number":314,"box":{"x":116,"y":227,"width":601,"height":12}},{"id":"1544d161-d3c0-41d7-834e-de02d8b62cd8","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that","page_number":314,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"1482d84b-7c1f-4d16-bd72-e7899cdc7347","block_type":"box","text":"speak to the board’s effectiveness as a group include the relevance of individual directors’","page_number":314,"box":{"x":116,"y":273,"width":673,"height":12}},{"id":"6eab5db6-f1f2-4586-abd7-3978bce99baf","block_type":"box","text":"qualifications and skillsets, as well as directors’ capacity and other time commitments, and how these","page_number":314,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"f731749a-b885-41f5-95f5-5b69ba81444d","block_type":"box","text":"factors may contribute to the company’s financial performance. We look to boards to establish formal","page_number":314,"box":{"x":116,"y":304,"width":754,"height":12}},{"id":"1bc79012-0e3c-41df-a33c-86061d61bb07","block_type":"box","text":"and transparent processes for nominating directors that reflect the company’s long-term strategy and","page_number":314,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"64d7fd20-8ffb-4c33-8cc1-7d321863d92c","block_type":"box","text":"business model.","page_number":314,"box":{"x":117,"y":335,"width":125,"height":10}},{"id":"8859d439-eabc-45db-a8fa-48dae6ddb441","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our","page_number":314,"box":{"x":117,"y":366,"width":697,"height":12}},{"id":"75fb9519-def7-4b05-8600-77b997023cdc","block_type":"box","text":"approach to board composition and how it underpins board effectiveness and long-term financial value","page_number":314,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"06b91986-8375-4f30-aa40-a8180acde5eb","block_type":"box","text":"creation.","page_number":314,"box":{"x":116,"y":397,"width":69,"height":10}},{"id":"d2648aea-3f73-4ebd-a108-308a86ce3694","block_type":"box","text":"Regular accountability through director elections","page_number":314,"box":{"x":117,"y":428,"width":397,"height":12}},{"id":"933f8f84-948d-466e-9a44-b97d937fc7c4","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for,","page_number":314,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"a920656d-cb82-441b-8b4e-21cbc34b3b03","block_type":"box","text":"or concern about, the performance of the board in overseeing and advising management. To ensure","page_number":314,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"e8959b79-2fb5-4660-a3a6-d3aac46018ee","block_type":"box","text":"accountability for their decisions on behalf of shareholders, directors should stand for election on a","page_number":314,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"ab917a36-2742-404f-ab28-3ea6575c1dff","block_type":"box","text":"regular basis, ideally annually.","page_number":314,"box":{"x":117,"y":506,"width":223,"height":12}},{"id":"9893db75-523b-467f-84b8-535e42a09581","block_type":"box","text":"5","page_number":314,"box":{"x":341,"y":506,"width":6,"height":6}},{"id":"b9ab1342-ae87-4185-9d92-15c74dc0883c","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support","page_number":314,"box":{"x":347,"y":506,"width":517,"height":12}},{"id":"10300f4c-8fff-42b5-a987-f78ae1932720","block_type":"box","text":"for, or concerns about, board members’ decisions in a timely manner. When board members are not","page_number":314,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"34b33c87-af88-40e6-9d96-56d72f09f81a","block_type":"box","text":"elected annually, we consider it good practice for boards to have a rotation policy to ensure that,","page_number":314,"box":{"x":116,"y":537,"width":719,"height":12}},{"id":"9a6681b8-d027-4561-8b0f-9ba687606bb6","block_type":"box","text":"through a board cycle, all directors have had their appointment re-confirmed, with a proportion of","page_number":314,"box":{"x":116,"y":552,"width":722,"height":12}},{"id":"30d14fce-a5d9-42aa-b28f-1c0bac7c91a7","block_type":"box","text":"directors being put forward for election at each shareholder meeting.","page_number":314,"box":{"x":116,"y":568,"width":513,"height":12}},{"id":"e90994ae-9666-4a57-aaf8-2b06f982a7d3","block_type":"box","text":"Board quality and effectiveness","page_number":314,"box":{"x":117,"y":599,"width":257,"height":12}},{"id":"fddf8683-f693-4e1a-96db-c10ed76f486a","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way","page_number":314,"box":{"x":117,"y":630,"width":770,"height":12}},{"id":"f57905df-e41e-4d82-a20e-3a10f85d1cc7","block_type":"box","text":"to reflect developments in the company’s strategy and the market environment. In our view, it is","page_number":314,"box":{"x":116,"y":645,"width":714,"height":12}},{"id":"db7d78c8-bf36-49dd-adda-a7393b6d1675","block_type":"box","text":"beneficial for new directors to be brought onto the board periodically to refresh the group’s thinking,","page_number":314,"box":{"x":117,"y":661,"width":735,"height":12}},{"id":"ea2f8f29-a3d9-475d-bdc2-879d0a1b8fc7","block_type":"box","text":"while supporting both continuity and appropriate succession planning. We consider the average overall","page_number":314,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"b12d558c-2e26-43b4-b33d-0df95a0a1317","block_type":"box","text":"tenure of the board and seek a balance between the knowledge and experience of longer-serving","page_number":314,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"de715ade-7853-4a45-a599-66c9ce6b34d3","block_type":"box","text":"directors and the fresh perspectives of directors who joined more recently.","page_number":314,"box":{"x":116,"y":707,"width":549,"height":12}},{"id":"dbe2882d-cf60-452b-8af6-97c4596fe025","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election","page_number":314,"box":{"x":116,"y":738,"width":725,"height":12}},{"id":"1fa8f1ee-f443-43d5-8cd2-e6a5f8bcc017","block_type":"box","text":"contribute to the effectiveness of the board. In our view, the company’s assessment should consider a","page_number":314,"box":{"x":116,"y":754,"width":757,"height":12}},{"id":"459f53b7-7ffa-4fd8-8ac4-e5ab84dd32fd","block_type":"box","text":"number of factors, including each director’s independence and time commitments, as well as the","page_number":314,"box":{"x":117,"y":769,"width":715,"height":12}},{"id":"2df3ecd3-4b98-45da-9cf8-4b2c63c22a8c","block_type":"box","text":"breadth and relevance of director experiences and skillsets, and how these collectively contribute to","page_number":314,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"29bfc595-ffd5-495c-9075-7565b1058a94","block_type":"box","text":"the board’s effectiveness in advising and overseeing management in delivering long-term financial","page_number":314,"box":{"x":116,"y":800,"width":728,"height":12}},{"id":"5fa9c376-2f70-4ae7-9d5d-551880ef5a14","block_type":"box","text":"returns.","page_number":314,"box":{"x":117,"y":816,"width":54,"height":9}},{"id":"6b6a5b8e-b0fe-4a20-bbf1-c866bba7b718","block_type":"box","text":"5","page_number":314,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"5fabc362-350a-4e4f-bda4-490061148a97","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law, market","page_number":314,"box":{"x":171,"y":867,"width":703,"height":9}},{"id":"9a2f5961-1ef8-4977-afc3-6d5c4b09520d","block_type":"box","text":"regulation or voluntary best practice.","page_number":314,"box":{"x":170,"y":880,"width":215,"height":9}},{"id":"82a20f3a-9ec1-41e6-9c09-17ab805ba0ce","block_type":"box","text":"BlackRock Investment Stewardship","page_number":314,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"5a3fa30a-7bd1-465a-ba2e-3d208d4a2f03","block_type":"box","text":"Global Principles |","page_number":314,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"7464891e-83e8-48e5-8948-71c9e1c056c2","block_type":"box","text":"6","page_number":314,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"3f80f5cf-a2f8-4b9a-8da0-758f78531f1a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":314,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b4b0422f-6a96-4156-8f58-cd434a950935","block_type":"box","text":"Director independence","page_number":315,"box":{"x":117,"y":87,"width":186,"height":12}},{"id":"9441e830-4ec4-477e-9527-66189e87ed1f","block_type":"box","text":"Director independence – from management, significant shareholders, or other related parties – is a","page_number":315,"box":{"x":117,"y":117,"width":738,"height":12}},{"id":"e718e02f-5017-440b-9adf-8384391adb14","block_type":"box","text":"central tenet of sound corporate governance across markets.","page_number":315,"box":{"x":116,"y":132,"width":452,"height":12}},{"id":"ee0057d4-c8da-45f1-abfc-c6274822b995","block_type":"box","text":"6","page_number":315,"box":{"x":570,"y":132,"width":5,"height":6}},{"id":"8960ade1-7ea2-4e8b-9908-42d588c9d16b","block_type":"box","text":"We look to boards to have a sufficient","page_number":315,"box":{"x":576,"y":132,"width":290,"height":10}},{"id":"069f484a-416d-49cf-8a13-973fc1a734b6","block_type":"box","text":"number of independent directors, free from conflicts of interest or undue influence, to ensure objectivity","page_number":315,"box":{"x":117,"y":148,"width":768,"height":12}},{"id":"509427d9-5b32-48eb-9928-648602081e61","block_type":"box","text":"in the decision-making of the board and its ability to oversee management. We generally consider it","page_number":315,"box":{"x":117,"y":163,"width":742,"height":12}},{"id":"cef1bb40-e68d-4b42-aeae-e33d4aa54761","block_type":"box","text":"good practice for independent directors to make a majority of the board, or in the case of controlled","page_number":315,"box":{"x":116,"y":179,"width":740,"height":12}},{"id":"4d50fd69-3ed7-42de-bdc0-8fae8e8cae30","block_type":"box","text":"companies, at least one-third.","page_number":315,"box":{"x":116,"y":194,"width":225,"height":12}},{"id":"e94db51a-683c-4e74-801d-bcdb33bab506","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":315,"box":{"x":117,"y":224,"width":557,"height":12}},{"id":"e5e0d075-d636-4a4a-a565-605de518323d","block_type":"box","text":"• Current or recent employment at the company or a subsidiary","page_number":315,"box":{"x":117,"y":254,"width":495,"height":12}},{"id":"23cbb673-fe37-4b22-a6eb-4db2337915f2","block_type":"box","text":"• Being, or representing, a shareholder with a substantial shareholding in the company","page_number":315,"box":{"x":117,"y":276,"width":668,"height":12}},{"id":"5746b5b5-d7cb-4f73-8a10-ab05db3d19ee","block_type":"box","text":"• Interlocking directorates","page_number":315,"box":{"x":117,"y":299,"width":216,"height":12}},{"id":"ccbfbd64-bd92-4f8b-b153-db736a1b48b4","block_type":"box","text":"• Having any other interest, business, or other relationship which could, or could reasonably be","page_number":315,"box":{"x":117,"y":322,"width":730,"height":12}},{"id":"c1b6643c-101c-400d-a995-c5fa7ff17473","block_type":"box","text":"perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":315,"box":{"x":150,"y":337,"width":729,"height":12}},{"id":"98c76a8d-a2b3-4139-b6e1-e182663a0ba0","block_type":"box","text":"and shareholders","page_number":315,"box":{"x":150,"y":353,"width":134,"height":9}},{"id":"019103f6-9b63-4ccf-b398-f5991e113a28","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a","page_number":315,"box":{"x":117,"y":382,"width":759,"height":12}},{"id":"e7e01409-63fe-4d12-965e-36de9c7ebed6","block_type":"box","text":"senior, independent board leader. This director may chair the board, or, where the chair is also the","page_number":315,"box":{"x":116,"y":398,"width":736,"height":12}},{"id":"3cc87a06-9ff0-4745-a04a-3de6e2830ed8","block_type":"box","text":"CEO (or is otherwise not independent), be designated as a lead independent director. The role of this","page_number":315,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"9275d714-c1d5-4cfd-9655-397e460ef92b","block_type":"box","text":"director is to support independent board members in fulfilling their oversight responsibilities effectively","page_number":315,"box":{"x":116,"y":429,"width":760,"height":12}},{"id":"6d043323-7fa2-4032-aed2-082e5a8a60a1","block_type":"box","text":"by shaping the agenda, ensuring adequate information is provided to the board, and encouraging","page_number":315,"box":{"x":117,"y":444,"width":726,"height":12}},{"id":"867f4ebb-c151-4c3b-82f3-08a0165c0fcb","block_type":"box","text":"independent director participation in board deliberations. We appreciate when the lead independent","page_number":315,"box":{"x":117,"y":460,"width":742,"height":12}},{"id":"eb9a3873-df1a-4f80-9efc-2cbef75a7ea0","block_type":"box","text":"director or another appropriate director is available to meet with shareholders to explain and","page_number":315,"box":{"x":116,"y":475,"width":687,"height":12}},{"id":"61be8be3-09c2-41f3-a818-c87dd4e75b63","block_type":"box","text":"contextualize a company’s approach as a situation warrants.","page_number":315,"box":{"x":116,"y":491,"width":454,"height":12}},{"id":"c5441390-4a02-4f5b-92c3-e3c532d08390","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or","page_number":315,"box":{"x":117,"y":520,"width":759,"height":13}},{"id":"01c5e01f-800c-4595-957e-1bb64f067e02","block_type":"box","text":"that require additional focus. It is our view that objective oversight of such matters is best achieved","page_number":315,"box":{"x":116,"y":536,"width":736,"height":12}},{"id":"61884271-d3c2-498c-a684-4d02fec2b60f","block_type":"box","text":"when the board forms committees with a majority of independent directors, depending on market","page_number":315,"box":{"x":116,"y":551,"width":723,"height":13}},{"id":"db3ee6b2-2709-442b-8b70-74aa1a7f8f74","block_type":"box","text":"norms and a company’s ownership structure. In many markets, these committees of the board","page_number":315,"box":{"x":117,"y":567,"width":704,"height":12}},{"id":"8e0efbbd-af21-4e75-ba1f-37a3f5256829","block_type":"box","text":"specialize in audit, director nominations, and compensation matters, among others. An ad hoc","page_number":315,"box":{"x":116,"y":583,"width":703,"height":12}},{"id":"86cef62a-63c0-4bb6-84b9-a68c315c85ee","block_type":"box","text":"committee might also be formed to decide on a special transaction, particularly one involving a related","page_number":315,"box":{"x":116,"y":598,"width":762,"height":12}},{"id":"1a803f26-4bb6-43a5-8821-20420f098bf8","block_type":"box","text":"party, or to investigate a significant adverse event.","page_number":315,"box":{"x":117,"y":613,"width":378,"height":13}},{"id":"a2b7de21-ad15-4c3b-8757-14a524644227","block_type":"box","text":"Sufficient capacity","page_number":315,"box":{"x":116,"y":643,"width":153,"height":12}},{"id":"56201879-c081-4bd9-af5a-331753c400cf","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to","page_number":315,"box":{"x":116,"y":673,"width":709,"height":12}},{"id":"12017ddb-cc28-4c62-b184-31a03e21d3cc","block_type":"box","text":"commit an appropriate amount of time to board and committee matters. It is important that directors","page_number":315,"box":{"x":116,"y":688,"width":738,"height":12}},{"id":"d6454266-8c35-46c7-a200-c57eb809c50c","block_type":"box","text":"have the capacity to meet all of their responsibilities – including when there are unforeseen events –","page_number":315,"box":{"x":117,"y":704,"width":743,"height":12}},{"id":"6beafd4b-9f13-417c-9d2e-4fe384f768d6","block_type":"box","text":"and therefore, we consider it best practice when they don’t take on an excessive number of roles that","page_number":315,"box":{"x":116,"y":719,"width":751,"height":13}},{"id":"a8a9756e-b108-41c1-8ae1-e5d060479b30","block_type":"box","text":"would impair their ability to fulfill their duties.","page_number":315,"box":{"x":116,"y":735,"width":326,"height":12}},{"id":"61657754-5f68-45b5-860b-57fdaeabc793","block_type":"box","text":"Board composition","page_number":315,"box":{"x":117,"y":765,"width":151,"height":12}},{"id":"ccc92cfc-6417-4286-9ad7-d577ed1316a5","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model,","page_number":315,"box":{"x":117,"y":795,"width":708,"height":11}},{"id":"580a74c4-46d0-49e2-8f43-db487fad23ac","block_type":"box","text":"strategy, market capitalization, and ownership structure, as well as the market in which the company","page_number":315,"box":{"x":116,"y":810,"width":745,"height":12}},{"id":"9427722d-1ae7-4031-8061-0b58bca0856c","block_type":"box","text":"operates. We find it helpful when companies explain how their approach to board composition supports","page_number":315,"box":{"x":116,"y":825,"width":771,"height":12}},{"id":"2e72b7a5-bda7-4b43-a532-66bb4feb7770","block_type":"box","text":"the company’s governance practices.","page_number":315,"box":{"x":116,"y":841,"width":282,"height":12}},{"id":"13a081fa-2b00-45b5-b640-cbb7a74236cf","block_type":"box","text":"6","page_number":315,"box":{"x":143,"y":866,"width":4,"height":5}},{"id":"4e68e8e6-4302-495e-b592-0d0a2f362f81","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":315,"box":{"x":171,"y":866,"width":683,"height":10}},{"id":"3cff4367-515f-4b83-8d42-deda7e681d50","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":315,"box":{"x":171,"y":879,"width":587,"height":10}},{"id":"cf06dcbf-57d0-41ba-8f32-bcf7ca021008","block_type":"box","text":"BlackRock Investment Stewardship","page_number":315,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"264a19ae-a904-48b5-a90c-7d41ac5b4d19","block_type":"box","text":"Global Principles |","page_number":315,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"e9d38500-1bb4-476b-9500-7ceabaca60dc","block_type":"box","text":"7","page_number":315,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"b50bcf6b-2629-4e56-b1cb-c61a5f0fb260","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":315,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"47215e66-3283-45b1-90f0-330c2659204d","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the","page_number":316,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"1b7f9f3f-a0f1-467b-ad87-40a90b7f3161","block_type":"box","text":"individual candidates so that shareholders can assess the capabilities and suitability of each individual","page_number":316,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"87fe0293-9a16-4b54-9091-d0df68f9de5a","block_type":"box","text":"nominee and their fit within overall board composition. These disclosures should explain how the","page_number":316,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"652bd406-e3df-421f-8044-97b1325e2eee","block_type":"box","text":"collective experience and expertise of the board, as well as the particular skillsets of individual","page_number":316,"box":{"x":116,"y":134,"width":703,"height":11}},{"id":"d03b80c0-5c42-4a85-8699-236ad122dffc","block_type":"box","text":"directors, aligns with the company’s long-term strategy. Highly qualified, engaged directors with","page_number":316,"box":{"x":116,"y":149,"width":713,"height":12}},{"id":"6e2a4306-f9c2-41fe-991d-2db3dd6ff028","block_type":"box","text":"professional characteristics relevant to a company’s business and strategy enhance the ability of the","page_number":316,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"71984ea9-1547-4af8-90d2-9181f0c9efa1","block_type":"box","text":"board to add value and be the voice of shareholders in board discussions.","page_number":316,"box":{"x":117,"y":180,"width":554,"height":10}},{"id":"6d049ade-13e9-47f7-8ef4-b8c9b9ea48f7","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the","page_number":316,"box":{"x":117,"y":208,"width":755,"height":12}},{"id":"69f321d4-e59a-489e-ada2-609a136f5d4f","block_type":"box","text":"board room. We see it as a means of avoiding “group think” in the board’s exercise of its","page_number":316,"box":{"x":117,"y":224,"width":659,"height":12}},{"id":"fbbb4b82-7e1c-4e32-b301-95a3ac3f46fb","block_type":"box","text":"responsibilities to advise and oversee management. We note that in many markets, policymakers have","page_number":316,"box":{"x":117,"y":239,"width":768,"height":12}},{"id":"f3b4b6ed-428f-4137-86ce-9c17e0bbfc44","block_type":"box","text":"set board gender diversity goals which we may discuss with companies, particularly if there is a risk","page_number":316,"box":{"x":116,"y":255,"width":743,"height":12}},{"id":"781092a0-2910-467f-9f45-fc858130fb84","block_type":"box","text":"their board composition may be misaligned.","page_number":316,"box":{"x":116,"y":270,"width":329,"height":12}},{"id":"f77ea96d-3c32-4752-b1c4-f12b2b8c6867","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":316,"box":{"x":331,"y":305,"width":341,"height":9}},{"id":"385cb140-d5e9-48cc-9b7d-5788cf8dcfe9","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate","page_number":316,"box":{"x":117,"y":333,"width":725,"height":12}},{"id":"37123bde-5c6c-4542-a63e-d55d8df4c380","block_type":"box","text":"portrayal of a company’s financial condition. Accordingly, we look for the assumptions made by","page_number":316,"box":{"x":117,"y":349,"width":709,"height":12}},{"id":"f601ceaa-a771-4aba-9d5c-ec4021f0ec2a","block_type":"box","text":"management, and reviewed by the auditor in preparing the financial statements, to be reasonable and","page_number":316,"box":{"x":117,"y":364,"width":760,"height":12}},{"id":"82ed1e95-5d37-40b1-b3b0-beac477b7335","block_type":"box","text":"justified.","page_number":316,"box":{"x":115,"y":380,"width":67,"height":12}},{"id":"ce2075b0-a9a7-4ca5-9a0b-0d1ead3f446c","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":316,"box":{"x":116,"y":408,"width":754,"height":12}},{"id":"e474adb3-b3b7-4977-be8d-55875491691a","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important","page_number":316,"box":{"x":117,"y":423,"width":746,"height":12}},{"id":"e51a6c51-931c-45f1-9682-3f76bfc69bdf","block_type":"box","text":"role in a company’s financial reporting system by providing independent oversight of the accounts,","page_number":316,"box":{"x":117,"y":439,"width":733,"height":12}},{"id":"5d93ae5d-3bd1-4ff0-ba6e-bf7eff12d85a","block_type":"box","text":"material financial, and, where appropriate to the jurisdiction, non-financial information and internal","page_number":316,"box":{"x":117,"y":454,"width":728,"height":12}},{"id":"e6ba1b59-785c-43b9-8830-7f5820b797a1","block_type":"box","text":"control frameworks. Moreover, in the absence of a dedicated risk committee, these committees can","page_number":316,"box":{"x":116,"y":470,"width":743,"height":11}},{"id":"a13b20d1-d906-4eeb-99a0-7f240505623f","block_type":"box","text":"provide oversight of Enterprise Risk Management systems.","page_number":316,"box":{"x":117,"y":485,"width":437,"height":12}},{"id":"5d725127-f14a-4a1c-9ce4-344e6a8aca79","block_type":"box","text":"7","page_number":316,"box":{"x":556,"y":486,"width":5,"height":5}},{"id":"71bd61ec-9153-4dc9-8bee-137499457fc3","block_type":"box","text":"In our view, effective audit committee","page_number":316,"box":{"x":562,"y":485,"width":286,"height":12}},{"id":"f0c32fb6-3dd6-4203-a43f-a2575ca7faaa","block_type":"box","text":"oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":316,"box":{"x":116,"y":501,"width":745,"height":12}},{"id":"3d5e9563-fd16-4978-8525-c16572b3f3e7","block_type":"box","text":"important level of reassurance to shareholders.","page_number":316,"box":{"x":117,"y":516,"width":354,"height":12}},{"id":"5e6488e9-47af-48d1-8d1f-ef9726e575c5","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":316,"box":{"x":116,"y":545,"width":750,"height":12}},{"id":"9aa11bbc-d9b1-40dc-b359-bbe9de4a068b","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership","page_number":316,"box":{"x":117,"y":560,"width":765,"height":12}},{"id":"dd78f0af-1a0a-4a48-8b0c-1de3ed33d630","block_type":"box","text":"and introduce new perspectives. We recognize that audit committees will rely on management, internal","page_number":316,"box":{"x":116,"y":576,"width":769,"height":12}},{"id":"92b6067c-54b8-4242-b157-ac514ca16d49","block_type":"box","text":"audit, and the independent auditor to fulfill their responsibilities. However, we look to committee","page_number":316,"box":{"x":116,"y":591,"width":712,"height":12}},{"id":"dd4fc57a-b6fe-4d22-9bdc-fc7de3c9a385","block_type":"box","text":"members to demonstrate they have relevant expertise to monitor and oversee the audit process and","page_number":316,"box":{"x":117,"y":607,"width":749,"height":12}},{"id":"4d1919b5-58cc-4f72-90c1-3d39f0a11f88","block_type":"box","text":"related activities.","page_number":316,"box":{"x":117,"y":622,"width":129,"height":10}},{"id":"6d750baf-50ef-4e14-8707-fffee2941278","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant","page_number":316,"box":{"x":116,"y":650,"width":753,"height":12}},{"id":"7d65e896-f9c4-4713-8451-3fb793b8e330","block_type":"box","text":"financial restatements, or ad hoc notifications of material financial weakness. In this respect, we look to","page_number":316,"box":{"x":116,"y":666,"width":765,"height":12}},{"id":"5b2fecec-b8ff-4c0c-bef6-3ee9526ed77d","block_type":"box","text":"audit committees to provide timely disclosure on the remediation of key and critical audit matters","page_number":316,"box":{"x":116,"y":681,"width":715,"height":12}},{"id":"411f3899-6694-4f9b-b246-e53461fc54de","block_type":"box","text":"identified either by the external auditor or internal audit function.","page_number":316,"box":{"x":117,"y":697,"width":472,"height":12}},{"id":"0383d73b-3314-4627-8b01-b8f5df364311","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":316,"box":{"x":116,"y":725,"width":748,"height":12}},{"id":"b9f8e0c4-5a1a-41ea-9fd0-7330a9b8f175","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that","page_number":316,"box":{"x":116,"y":741,"width":750,"height":12}},{"id":"719eb2b5-8f2a-4ffa-ac63-cec4bd4031b4","block_type":"box","text":"auditors are, and are seen to be, independent. Where an audit firm provides services to the company","page_number":316,"box":{"x":116,"y":756,"width":751,"height":12}},{"id":"5a643f2a-b6a6-4c8b-b62e-41f615c5ad5c","block_type":"box","text":"in addition to the audit, we look for the fees","page_number":316,"box":{"x":117,"y":772,"width":318,"height":11}},{"id":"3e1e84c7-ff18-4309-89d1-f9b246017e6e","block_type":"box","text":"earned to be disclosed and explained. We look for audit","page_number":316,"box":{"x":441,"y":772,"width":414,"height":12}},{"id":"4aec64a9-8f4e-410c-8dc5-35d7e4a9c8e5","block_type":"box","text":"committees to have in place a procedure for assessing the independence of the auditor and the quality","page_number":316,"box":{"x":116,"y":787,"width":762,"height":12}},{"id":"ada152d5-9434-4ae1-b8f8-72ffa6c59129","block_type":"box","text":"of the external audit process on an annual basis.","page_number":316,"box":{"x":116,"y":803,"width":360,"height":12}},{"id":"5a44e35d-c940-494b-a309-693949c2fbe8","block_type":"box","text":"7","page_number":316,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"3983da46-041a-400e-b105-9f5ac3b1affd","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":316,"box":{"x":171,"y":828,"width":648,"height":9}},{"id":"f8873125-a976-4484-8d76-804dc9d7fb9e","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the","page_number":316,"box":{"x":170,"y":841,"width":709,"height":9}},{"id":"5a34cfb6-3f3e-4f92-9d1b-274782012c59","block_type":"box","text":"entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement of","page_number":316,"box":{"x":170,"y":854,"width":690,"height":9}},{"id":"75ee821a-1298-46d4-a9a5-9c12827671fc","block_type":"box","text":"objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO), “Enterprise","page_number":316,"box":{"x":170,"y":866,"width":710,"height":10}},{"id":"aca5a7a4-c2fa-46f1-a42c-e05d67593df4","block_type":"box","text":"Risk Management,” 2023, accessed in December 2025.","page_number":316,"box":{"x":171,"y":879,"width":329,"height":10}},{"id":"7d2752ac-53df-4c63-bb31-618c2730913b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":316,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"9bb5fc8e-8ee5-40ea-ad31-5eac080ef0f7","block_type":"box","text":"Global Principles |","page_number":316,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"f398a07e-33ea-470c-ace1-cc58c1443139","block_type":"box","text":"8","page_number":316,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"9f45c275-46c3-443d-a75e-e59c581646a4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":316,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8a321840-59ba-4e05-ae09-71d46cffca0a","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term","page_number":317,"box":{"x":117,"y":87,"width":719,"height":12}},{"id":"058ef36e-9a94-463f-b13b-2c83a0347d17","block_type":"box","text":"operational risk management practices and, more broadly, the quality of the board’s oversight. We look","page_number":317,"box":{"x":116,"y":102,"width":770,"height":13}},{"id":"3a445609-e44e-471c-885a-6c3a74c2b539","block_type":"box","text":"to the audit or risk committee to periodically review the company’s risk assessment and risk","page_number":317,"box":{"x":116,"y":118,"width":684,"height":12}},{"id":"951a1f62-cc1f-4087-9c55-549a369458e1","block_type":"box","text":"management policies and the significant risks and exposures identified by management, the internal","page_number":317,"box":{"x":117,"y":134,"width":747,"height":12}},{"id":"4dffc74b-4915-4ccd-9941-e3ba56d7b26d","block_type":"box","text":"auditors or the independent auditors, and management’s steps to address them. In the absence of","page_number":317,"box":{"x":116,"y":149,"width":735,"height":12}},{"id":"c0d044c8-552c-487a-9e1b-5423f6a17a31","block_type":"box","text":"detailed disclosures, we may conclude that companies are not adequately managing risk.","page_number":317,"box":{"x":116,"y":165,"width":668,"height":12}},{"id":"3af2e2c8-396c-4c94-9eb3-88275a05137a","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL","page_number":317,"box":{"x":141,"y":203,"width":723,"height":12}},{"id":"f096ec8c-f41c-4e26-a38e-ee6d07e3f6c8","block_type":"box","text":"SITUATIONS","page_number":317,"box":{"x":449,"y":219,"width":106,"height":9}},{"id":"3f6478b7-e1ef-40fe-924d-8ff7017ea032","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment","page_number":317,"box":{"x":116,"y":250,"width":766,"height":12}},{"id":"fb31b588-7522-499f-b93b-d063ff8488b5","block_type":"box","text":"and the priority of their interest in the company relative to that of other equity or debt investors.","page_number":317,"box":{"x":116,"y":265,"width":707,"height":12}},{"id":"c3d2398a-e52e-401b-92d3-bc1456823343","block_type":"box","text":"Pre-emptive rights are a key protection for shareholders against the dilution of their interests.","page_number":317,"box":{"x":117,"y":281,"width":693,"height":12}},{"id":"a4941538-661b-4def-b4d3-b56e1681ca74","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure","page_number":317,"box":{"x":117,"y":312,"width":746,"height":12}},{"id":"f3294c06-bdd4-4235-89d6-d3e05105a8c8","block_type":"box","text":"and differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce","page_number":317,"box":{"x":116,"y":327,"width":754,"height":12}},{"id":"bcf00d58-2d35-4c0d-bb4e-e92876f41c71","block_type":"box","text":"the adoption of “one share, one vote” for registered shareholders.","page_number":317,"box":{"x":116,"y":343,"width":491,"height":12}},{"id":"064fb598-d950-4ab8-9b81-e13c1b212659","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a","page_number":317,"box":{"x":117,"y":374,"width":740,"height":12}},{"id":"89ee8344-9699-4938-8209-4a480fe8cd08","block_type":"box","text":"valid reason for listing dual classes of shares with differentiated voting rights. In our view, such","page_number":317,"box":{"x":116,"y":389,"width":706,"height":12}},{"id":"8c8b5551-f9af-49e8-a2ad-bfcdbdd562a9","block_type":"box","text":"companies should review these share class structures on a regular basis or as company","page_number":317,"box":{"x":116,"y":405,"width":661,"height":12}},{"id":"645f7dda-92d1-49e4-929d-54d699abaeec","block_type":"box","text":"circumstances change. Additionally, they should seek shareholder approval of their capital structure on","page_number":317,"box":{"x":116,"y":420,"width":769,"height":12}},{"id":"24c667b2-a430-4148-8335-eb1acfb91d75","block_type":"box","text":"a periodic basis via a management proposal at the company’s shareholder meeting. The proposal","page_number":317,"box":{"x":116,"y":436,"width":731,"height":12}},{"id":"56734101-c8a5-4c92-ac95-24b666e9126c","block_type":"box","text":"should give unaffiliated shareholders the opportunity to affirm the current structure or establish","page_number":317,"box":{"x":116,"y":451,"width":705,"height":12}},{"id":"05223354-f2df-4a33-bd4a-92778c40b4e2","block_type":"box","text":"mechanisms to end or phase out controlling structures at the appropriate time, while minimizing costs","page_number":317,"box":{"x":117,"y":467,"width":757,"height":12}},{"id":"6cb704f7-5b48-4c9a-8c11-f0f1b7abd537","block_type":"box","text":"to shareholders.","page_number":317,"box":{"x":116,"y":482,"width":125,"height":10}},{"id":"e3e6ccc8-3e5d-4cc1-87bb-294f4e52621d","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long","page_number":317,"box":{"x":117,"y":513,"width":745,"height":12}},{"id":"438b5823-da2b-44b6-a63b-16613a979fa3","block_type":"box","text":"term financial interests of our clients as shareholders, and so we will review any proposed transaction","page_number":317,"box":{"x":116,"y":529,"width":758,"height":12}},{"id":"539b3cf7-e936-4ca0-b59e-22e221d7642f","block_type":"box","text":"with that objective in mind. Typically, we review factors such as whether the proposed transaction has","page_number":317,"box":{"x":116,"y":544,"width":760,"height":12}},{"id":"e3b64cd6-f10e-473a-aba4-c1d3e1f772ef","block_type":"box","text":"the unanimous support of the board and has been negotiated at arm’s length, and whether the board","page_number":317,"box":{"x":116,"y":560,"width":753,"height":12}},{"id":"9bbfe66b-027b-4718-bafe-b4f40180d546","block_type":"box","text":"or management has clearly explained its economic and strategic rationale. We may also seek","page_number":317,"box":{"x":116,"y":576,"width":699,"height":11}},{"id":"40de8e42-fae3-4b97-b78b-307289bf25f6","block_type":"box","text":"reassurance from the board that the financial interests of executives and/or board members in a given","page_number":317,"box":{"x":117,"y":591,"width":761,"height":12}},{"id":"d6389038-678f-46bf-ba90-d988fb527c43","block_type":"box","text":"transaction have not adversely affected their ability to place shareholders’ interests before their own.","page_number":317,"box":{"x":116,"y":606,"width":750,"height":12}},{"id":"4c2afa47-3b05-4bd2-b224-e0018be1997a","block_type":"box","text":"Where the transaction involves related parties, the recommendation to support should come from the","page_number":317,"box":{"x":116,"y":622,"width":755,"height":12}},{"id":"19f96468-010b-478d-98a4-d84bdb915297","block_type":"box","text":"independent directors, a best practice in most markets, and ideally, the terms should have been","page_number":317,"box":{"x":117,"y":638,"width":715,"height":11}},{"id":"323fea57-bdd6-4028-a522-3a5604e367fd","block_type":"box","text":"assessed through an independent appraisal process. In addition, it is good practice that it be approved","page_number":317,"box":{"x":116,"y":653,"width":766,"height":12}},{"id":"b7655cda-41d5-4fc2-b6d5-30264d1e05af","block_type":"box","text":"by a separate vote of the non-conflicted parties.","page_number":317,"box":{"x":117,"y":668,"width":352,"height":12}},{"id":"4b039ce6-5fb7-4998-890a-9ce4bf030d15","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company","page_number":317,"box":{"x":116,"y":699,"width":738,"height":13}},{"id":"9668228e-7bf3-459f-9347-b0be2aa0b0bf","block_type":"box","text":"shares in the open market without unnecessary restriction. In our view, corporate mechanisms","page_number":317,"box":{"x":116,"y":715,"width":700,"height":12}},{"id":"28629740-4d8c-4761-b681-5b66fe81c80c","block_type":"box","text":"designed to limit shareholders’ ability to sell their shares are contrary to basic property rights. Such","page_number":317,"box":{"x":116,"y":730,"width":732,"height":13}},{"id":"322d055f-ecf2-43b3-97dd-90d39e9ef9ec","block_type":"box","text":"mechanisms can serve to protect and entrench interests other than those of the shareholders. In our","page_number":317,"box":{"x":117,"y":746,"width":745,"height":12}},{"id":"cef77368-db34-425d-88db-93a1e6336395","block_type":"box","text":"view, shareholders are broadly capable of making decisions in their own best interests. We encourage","page_number":317,"box":{"x":116,"y":761,"width":759,"height":13}},{"id":"903d9bb2-551c-4fde-904a-2d9834dcf9ad","block_type":"box","text":"any shareholder rights plans proposed by a board to be subject to shareholder approval upon","page_number":317,"box":{"x":116,"y":777,"width":693,"height":12}},{"id":"c97125bd-b8c4-4d39-baad-91d900561547","block_type":"box","text":"introduction and periodically thereafter.","page_number":317,"box":{"x":117,"y":792,"width":287,"height":13}},{"id":"3ae53b45-c019-42d5-8011-eb11a4b40457","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":317,"box":{"x":318,"y":831,"width":369,"height":10}},{"id":"fd3dc5fa-5bab-4ec1-abff-b966d074753a","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value","page_number":317,"box":{"x":117,"y":862,"width":749,"height":12}},{"id":"b26e4cf1-7443-49d5-8a71-42a8db694522","block_type":"box","text":"creation. A well-structured compensation policy rewards the successful delivery of strategic,","page_number":317,"box":{"x":116,"y":878,"width":686,"height":12}},{"id":"aa42cc91-de7c-468d-9b89-442419380539","block_type":"box","text":"BlackRock Investment Stewardship","page_number":317,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"040dfa29-66b8-40ab-a272-3a33b97496b4","block_type":"box","text":"Global Principles |","page_number":317,"box":{"x":731,"y":909,"width":132,"height":12}},{"id":"02a3fd99-5316-475c-a94d-39a7f5f4f2b7","block_type":"box","text":"9","page_number":317,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"dfccaad0-6ead-4161-b522-f5f0c6cf2ab9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":317,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f101f426-8c8c-42ec-80b4-39197a9933d0","block_type":"box","text":"operational, and/or financial goals; encourages an appropriate risk appetite; and aligns the interests of","page_number":318,"box":{"x":116,"y":87,"width":763,"height":12}},{"id":"b1d02a0f-6de6-4953-9ea8-4732ca2ae78e","block_type":"box","text":"shareholders and executives through equity ownership.","page_number":318,"box":{"x":116,"y":103,"width":410,"height":12}},{"id":"6598f5ab-7b23-4142-bb09-bc2be98d4307","block_type":"box","text":"8","page_number":318,"box":{"x":528,"y":103,"width":5,"height":6}},{"id":"553f16a5-ba9a-4f04-997d-5da0ccdbe890","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support","page_number":318,"box":{"x":116,"y":134,"width":751,"height":12}},{"id":"b079012c-d1fb-4e7c-ad1f-cc6bf9b8c537","block_type":"box","text":"sustained financial value creation for our clients as shareholders. We appreciate when performance","page_number":318,"box":{"x":116,"y":149,"width":744,"height":12}},{"id":"118b2d93-91ff-43e3-8138-64211f7e92ba","block_type":"box","text":"targets incorporate ambitious objectives, and the corresponding metrics are aligned with the","page_number":318,"box":{"x":116,"y":165,"width":687,"height":12}},{"id":"f881e76f-a140-4706-a99d-580e99218b3f","block_type":"box","text":"company’s strategy and business model. BIS does not have a position on whether companies choose","page_number":318,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"7a5da180-0838-4230-9ddb-93acc9edb10d","block_type":"box","text":"to use sustainability-related criteria in compensation structures, but, where they are included, we look","page_number":318,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"09ea0e9c-23e5-43a1-985d-354daf713faf","block_type":"box","text":"to companies to be as rigorous as they would be in setting other financial or operational targets. We","page_number":318,"box":{"x":116,"y":211,"width":745,"height":12}},{"id":"276e9543-b1f3-4139-89e7-c0441081630a","block_type":"box","text":"appreciate when long-term incentive plans encompass timeframes that: 1) are distinct from annual","page_number":318,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"380beafd-a0df-4063-aadb-9dc2eaf22719","block_type":"box","text":"executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":318,"box":{"x":116,"y":242,"width":724,"height":12}},{"id":"c9b59976-1783-4b86-baf8-4cf755563299","block_type":"box","text":"results over a period of years.","page_number":318,"box":{"x":117,"y":258,"width":225,"height":12}},{"id":"afff5902-38d9-48dc-bfc8-c37ee2fba9a7","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":318,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"f0bf558d-0997-4f12-926d-a02c4ad6b990","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may","page_number":318,"box":{"x":116,"y":304,"width":720,"height":12}},{"id":"69d39cc3-1130-4247-80a0-8b0cd3075088","block_type":"box","text":"include the company’s risk profile, the environment it operates in, and the individuals the board is trying","page_number":318,"box":{"x":117,"y":320,"width":770,"height":12}},{"id":"6304af24-5302-4492-b1d1-5597256c87f9","block_type":"box","text":"to attract and retain. We look to the compensation committees to guard against contractual","page_number":318,"box":{"x":116,"y":335,"width":679,"height":12}},{"id":"f3199ab1-a0b3-4542-9c54-64c8429d9134","block_type":"box","text":"arrangements that would entitle executives to material compensation for early termination of their","page_number":318,"box":{"x":116,"y":351,"width":726,"height":12}},{"id":"b20bebe0-d546-476c-85bb-dcaaa25018d9","block_type":"box","text":"employment. Finally, we look for pension contributions and other deferred compensation arrangements","page_number":318,"box":{"x":116,"y":366,"width":770,"height":12}},{"id":"e3e3850c-2e72-483e-99fd-08edeb466327","block_type":"box","text":"to be reasonable in light of market practices or the company’s business and executive compensation","page_number":318,"box":{"x":116,"y":382,"width":752,"height":12}},{"id":"0c42b729-7c34-4678-a711-d65d5ded167d","block_type":"box","text":"strategies.","page_number":318,"box":{"x":116,"y":397,"width":82,"height":12}},{"id":"09a9d43a-2772-4d87-91c4-44ebe5a5e2ce","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance.","page_number":318,"box":{"x":116,"y":428,"width":755,"height":12}},{"id":"a5e4b265-2c34-4376-90f4-7d6122a1d51b","block_type":"box","text":"Where discretion has been used by the compensation committee, or its equivalent, we appreciate","page_number":318,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"73f31bd8-f87b-475c-a4a3-96ac9a29807b","block_type":"box","text":"disclosure relating to how and why the discretion was used, and how the adjusted outcome is aligned","page_number":318,"box":{"x":116,"y":459,"width":757,"height":12}},{"id":"3b760f3a-8150-4f22-a110-bb1bc7a86052","block_type":"box","text":"with the interests of shareholders. In addition, we acknowledge that the use of peer group evaluation","page_number":318,"box":{"x":116,"y":475,"width":751,"height":12}},{"id":"abe66ee2-d2b3-4e58-bf21-cea9442be110","block_type":"box","text":"by compensation committees can help ensure competitive pay. However, we encourage companies to","page_number":318,"box":{"x":117,"y":490,"width":763,"height":12}},{"id":"e1ca153b-5f52-4275-b51c-c2e922f6368c","block_type":"box","text":"clearly explain how compensation outcomes have rewarded performance rather than solely base","page_number":318,"box":{"x":116,"y":506,"width":724,"height":12}},{"id":"44209abe-a430-4dfe-8c6e-dfe08bea3589","block_type":"box","text":"increases in total compensation on peer benchmarking.","page_number":318,"box":{"x":117,"y":521,"width":416,"height":12}},{"id":"01193d28-cf26-4d86-bffd-ec3f33a89c74","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such","page_number":318,"box":{"x":116,"y":552,"width":755,"height":12}},{"id":"0a6414ee-4ca6-4887-b4a7-169c9d2760e6","block_type":"box","text":"provisions could require executives to forgo awards when compensation was based on faulty financial","page_number":318,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"59f61eb2-3cba-4523-8201-71211a92f274","block_type":"box","text":"statements or deceptive business practices, or when their behavior caused material financial harm to","page_number":318,"box":{"x":116,"y":583,"width":754,"height":12}},{"id":"4233ae2c-8b61-4121-a870-d50c7b10c934","block_type":"box","text":"shareholders, material reputational risk to the company, or resulted in a criminal investigation.","page_number":318,"box":{"x":116,"y":599,"width":701,"height":12}},{"id":"69e8cbb5-012c-486a-9665-cc431144ab35","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with","page_number":318,"box":{"x":117,"y":630,"width":745,"height":12}},{"id":"1ff5ac88-94fb-4fc2-8938-d8cc938bd964","block_type":"box","text":"the time and effort expended in fulfilling their professional responsibilities. Additionally, these","page_number":318,"box":{"x":116,"y":645,"width":691,"height":12}},{"id":"27ec4629-364d-4778-9c9f-ce307cc6d162","block_type":"box","text":"compensation arrangements should not risk compromising directors’ independence or aligning their","page_number":318,"box":{"x":116,"y":661,"width":739,"height":12}},{"id":"f5aa622c-3b07-4c6d-abf1-2008411cf063","block_type":"box","text":"interests too closely with those of the management, whom they are charged with overseeing.","page_number":318,"box":{"x":117,"y":676,"width":687,"height":12}},{"id":"3055ddc9-daa9-42fa-bc9b-8a427286f279","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether","page_number":318,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"6e8ee380-67bb-4b95-a0d5-c1176ccd4010","block_type":"box","text":"the board’s approach to executive compensation is rigorous in light of the company’s stated long-term","page_number":318,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"d6fd6d60-a64c-46c1-b7c1-07ca4ef7925c","block_type":"box","text":"corporate strategy and specific circumstances, as well as local market and policy developments.","page_number":318,"box":{"x":116,"y":738,"width":713,"height":12}},{"id":"407400e7-7c2f-4c3c-a766-a8859e6dbae8","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance,","page_number":318,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"8a2c28da-0ae4-4fd5-9503-22023f723782","block_type":"box","text":"BIS may not support management’s proposals to approve compensation, where they are on the","page_number":318,"box":{"x":117,"y":785,"width":709,"height":12}},{"id":"1eceef97-aee3-4458-9d24-46ba6387836b","block_type":"box","text":"agenda. We may also not support members of the compensation committee or equivalent board","page_number":318,"box":{"x":116,"y":800,"width":713,"height":12}},{"id":"9684c161-9595-4f06-adda-ecf902ba5ce2","block_type":"box","text":"members for poor compensation practices or structures.","page_number":318,"box":{"x":117,"y":816,"width":415,"height":12}},{"id":"11308c4b-5d89-4497-b0f8-d83e38019e04","block_type":"box","text":"8","page_number":318,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"3f538fda-6324-43f7-ad0a-f05628b947fc","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":318,"box":{"x":170,"y":867,"width":664,"height":9}},{"id":"00302ae7-f0e0-448a-85fb-34ef07dcea67","block_type":"box","text":"different markets.","page_number":318,"box":{"x":170,"y":880,"width":102,"height":7}},{"id":"90b1c35c-b011-471e-a9ed-e5eb5936b897","block_type":"box","text":"BlackRock Investment Stewardship","page_number":318,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"4e05aa9a-a421-4026-88b7-26a7cd9c3d75","block_type":"box","text":"Global Principles |","page_number":318,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"39722c1c-4997-4923-8dca-9a4c4c01080c","block_type":"box","text":"10","page_number":318,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"8bfa8fdb-f166-4848-a665-9d0c2711906d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":318,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d3f09ff5-e3f1-4fec-9882-0b97f2152578","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":319,"box":{"x":158,"y":87,"width":688,"height":10}},{"id":"5129be08-f98c-4146-87a6-246c0a385d8c","block_type":"box","text":"Corporate form","page_number":319,"box":{"x":116,"y":116,"width":127,"height":12}},{"id":"712fe51a-8d4d-440e-988a-2748ebf6961c","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate","page_number":319,"box":{"x":117,"y":145,"width":766,"height":12}},{"id":"81d5378c-eb22-4857-b979-e7b1233e66ec","block_type":"box","text":"given the company’s purpose and business model.","page_number":319,"box":{"x":116,"y":161,"width":376,"height":12}},{"id":"d6d59453-5e11-4a28-a733-4d028cedf75b","block_type":"box","text":"9","page_number":319,"box":{"x":494,"y":161,"width":5,"height":6}},{"id":"48794cea-f368-4c4a-b2c9-4a2cd41fd229","block_type":"box","text":"We look to companies proposing to change their","page_number":319,"box":{"x":500,"y":161,"width":369,"height":12}},{"id":"cd23e9fb-9440-40fa-ad80-f79935496a50","block_type":"box","text":"corporate form to a public benefit corporation, or similar entity, to put it to a shareholder vote if not","page_number":319,"box":{"x":116,"y":176,"width":731,"height":12}},{"id":"7f4903f3-fab2-46ec-a1cf-23c31956260a","block_type":"box","text":"already required to do so under applicable law. We appreciate when supporting documentation from","page_number":319,"box":{"x":116,"y":192,"width":748,"height":12}},{"id":"b8b41066-b6a9-4041-a0b5-b231596de029","block_type":"box","text":"companies or shareholders proposing to alter the corporate form clearly explains how the interests of","page_number":319,"box":{"x":116,"y":207,"width":755,"height":12}},{"id":"82999f02-702b-4a10-bc5a-62f1110c1df0","block_type":"box","text":"shareholders and different stakeholders would be impacted as well as the accountability and voting","page_number":319,"box":{"x":116,"y":223,"width":741,"height":12}},{"id":"3977e2dc-f571-4041-9e7b-32b5969a4a8e","block_type":"box","text":"mechanisms that would be available to shareholders. We generally support management proposals if","page_number":319,"box":{"x":117,"y":238,"width":756,"height":12}},{"id":"a0090f76-a7a8-4902-9aab-bfb86f02e4f2","block_type":"box","text":"our analysis indicates that shareholders’ financial interests are adequately protected. Corporate form","page_number":319,"box":{"x":116,"y":254,"width":752,"height":12}},{"id":"ed83fdb7-16bd-4bb5-ba7d-0e42e72c94e6","block_type":"box","text":"shareholder proposals are evaluated on a case-by-case basis.","page_number":319,"box":{"x":116,"y":269,"width":468,"height":12}},{"id":"e2b9e706-9b70-4779-8f12-48015886f5be","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":319,"box":{"x":380,"y":305,"width":244,"height":10}},{"id":"1b718159-f8c5-4c79-bf2f-6dd7fdfae269","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":319,"box":{"x":117,"y":335,"width":717,"height":12}},{"id":"462a945f-e1ab-4d76-98aa-c034499c10ac","block_type":"box","text":"meeting, as long as certain requirements are met. Shareholder proposals span a wide range of topics,","page_number":319,"box":{"x":117,"y":350,"width":762,"height":12}},{"id":"bd4af420-3838-4930-a8c3-ec86bfa37af5","block_type":"box","text":"including governance reforms, capital management, and changes in the management or disclosure of","page_number":319,"box":{"x":117,"y":365,"width":758,"height":13}},{"id":"15dacdcb-315a-4f5a-a8c7-15284bd3e112","block_type":"box","text":"sustainability-related risks. These proposals have a varying degree of relevance for companies across","page_number":319,"box":{"x":116,"y":381,"width":763,"height":12}},{"id":"9c9f416a-dfb2-4f25-b6fc-a5ef42017c2f","block_type":"box","text":"sectors, locations, and business models.","page_number":319,"box":{"x":116,"y":397,"width":307,"height":11}},{"id":"05ebe6a8-a3e6-4623-b0a3-490383d72df7","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus","page_number":319,"box":{"x":117,"y":426,"width":764,"height":12}},{"id":"04448b8d-1c30-4aa3-80a6-164fc8e0712f","block_type":"box","text":"on the proposal’s implications for long-term financial value creation for shareholders. Our analysis","page_number":319,"box":{"x":116,"y":441,"width":730,"height":12}},{"id":"1c574b22-f322-46d9-a843-c2989f2a501f","block_type":"box","text":"considers whether a shareholder proposal addresses a material risk that may impact a company’s","page_number":319,"box":{"x":116,"y":457,"width":732,"height":12}},{"id":"437ec7ed-f34d-4e47-9ba3-88c9f5ab0ebd","block_type":"box","text":"long-term financial performance. BIS may support shareholder proposals that request disclosures that","page_number":319,"box":{"x":117,"y":472,"width":760,"height":12}},{"id":"db9556ca-183b-4b2b-8e6a-0ea9b0927652","block_type":"box","text":"help us, as long-term investors on behalf of our clients, better understand the material risks and","page_number":319,"box":{"x":117,"y":488,"width":713,"height":12}},{"id":"24091aaa-dde8-4fcd-933f-f83308a8afd6","block_type":"box","text":"opportunities companies face and how they are managing them, especially where this information is","page_number":319,"box":{"x":116,"y":503,"width":747,"height":12}},{"id":"3352fa20-35ab-44e9-abed-b917f33ea43c","block_type":"box","text":"additive given the company’s existing disclosures. We look for consistency between the specific","page_number":319,"box":{"x":116,"y":519,"width":715,"height":12}},{"id":"796f2866-f513-4b72-ad44-169dea88c895","block_type":"box","text":"request formally made in the proposal, the supporting documentation, and the proponents’ other","page_number":319,"box":{"x":117,"y":534,"width":717,"height":12}},{"id":"ff96369d-9cf3-49f2-b5ef-33ca52f8d078","block_type":"box","text":"communications on the issues. We also assess the company’s practices and disclosures and the costs","page_number":319,"box":{"x":116,"y":550,"width":769,"height":12}},{"id":"3fd50d13-aa75-4cd2-a9e4-2ff73146b751","block_type":"box","text":"and benefits to the company of meeting the request made in the proposal. We take into consideration a","page_number":319,"box":{"x":116,"y":565,"width":772,"height":12}},{"id":"50dcdb1b-4946-4ce5-af60-fc574859abfd","block_type":"box","text":"company’s governance practices and disclosures against those of their peers.","page_number":319,"box":{"x":116,"y":581,"width":583,"height":12}},{"id":"ea458864-8fa8-46c6-a74a-f229f9b09e5b","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value","page_number":319,"box":{"x":117,"y":610,"width":767,"height":12}},{"id":"df5951cf-2bd3-471e-aeb4-2b1081fe3f3a","block_type":"box","text":"or that seek to micromanage companies. We take into consideration the legal effect of the proposal, as","page_number":319,"box":{"x":116,"y":625,"width":769,"height":12}},{"id":"2882a1a1-3ab7-4934-b6a9-0af1f172389f","block_type":"box","text":"shareholder proposals may be advisory or legally binding depending on the jurisdiction, while others","page_number":319,"box":{"x":116,"y":641,"width":747,"height":12}},{"id":"7b5144f2-72cd-462b-8b73-b1cb2bad122c","block_type":"box","text":"may make requests that would be deemed illegal in a given jurisdiction.","page_number":319,"box":{"x":117,"y":656,"width":534,"height":12}},{"id":"40b26603-0559-49ec-9fdd-202d36f4e6b9","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization","page_number":319,"box":{"x":117,"y":685,"width":740,"height":12}},{"id":"f8537d9d-becf-4701-9ce9-71813dac13dc","block_type":"box","text":"that has submitted or advised on the proposal. We recognize that some shareholder proposals bundle","page_number":319,"box":{"x":116,"y":701,"width":757,"height":12}},{"id":"c6eb4926-5fe3-4be8-b81c-4b5b6b0da2cb","block_type":"box","text":"topics and/or specific requests. Further, the proponent’s supporting statement may refer to topics that","page_number":319,"box":{"x":116,"y":716,"width":753,"height":12}},{"id":"e3c24257-dcea-4ab1-b8b1-9f780f16f7c5","block_type":"box","text":"are not directly related to the request made in the proposal. In voting on behalf of clients, we must vote","page_number":319,"box":{"x":116,"y":732,"width":762,"height":12}},{"id":"4a5423b6-6635-48ad-a830-c9318067990a","block_type":"box","text":"yes or no on the proposal as phrased by the proponent. Therefore, when we vote in support of a","page_number":319,"box":{"x":116,"y":747,"width":714,"height":13}},{"id":"7af51e8c-bf8b-4d98-afaf-227f28bba197","block_type":"box","text":"proposal, we are not necessarily endorsing every element of the proposal or the reasoning, objectives,","page_number":319,"box":{"x":117,"y":763,"width":759,"height":12}},{"id":"909bef1d-1e53-48dc-a0cf-5e4c892af3c6","block_type":"box","text":"or supporting statement of the proponent. We may support a proposal for different reasons than those","page_number":319,"box":{"x":116,"y":778,"width":757,"height":13}},{"id":"23571f03-3a50-46e5-b3c7-fc7aa26d5216","block_type":"box","text":"put forth by the proponent, when we believe that overall it may advance our clients’ long-term financial","page_number":319,"box":{"x":117,"y":794,"width":757,"height":12}},{"id":"ee1692ad-22ee-40db-bd5e-4806f99c7ec0","block_type":"box","text":"interests.","page_number":319,"box":{"x":117,"y":810,"width":65,"height":9}},{"id":"c28bf83b-7acc-482e-a850-446612d1f59b","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that","page_number":319,"box":{"x":117,"y":839,"width":752,"height":12}},{"id":"497c6669-815a-4747-9721-54aad5840f89","block_type":"box","text":"place restrictions and limitations on how BlackRock can interact with the companies in which we invest","page_number":319,"box":{"x":117,"y":854,"width":766,"height":12}},{"id":"b06bd42a-f317-4135-a5fb-32b6388e1bdf","block_type":"box","text":"9","page_number":319,"box":{"x":143,"y":879,"width":4,"height":5}},{"id":"a4df633a-500e-4de3-8384-8c6dd839656b","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":319,"box":{"x":170,"y":879,"width":457,"height":10}},{"id":"17475f74-ec11-4316-8025-a489c5260c81","block_type":"box","text":"BlackRock Investment Stewardship","page_number":319,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"b3ef6b4d-2371-4320-bde4-43cb91527ec4","block_type":"box","text":"Global Principles |","page_number":319,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"7f61bd7a-6c66-49d9-8fd4-22354493e56a","block_type":"box","text":"11","page_number":319,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"96b53e3a-6e0f-4966-ae9b-57fd5bfa4996","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":319,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f1182b41-7ed5-4d4f-a406-9ab8a601204f","block_type":"box","text":"on behalf of our clients. BlackRock does not nominate directors for board elections or submit","page_number":320,"box":{"x":116,"y":87,"width":692,"height":10}},{"id":"0fa60ae3-9e24-44ba-a1ac-46aa16b6fa45","block_type":"box","text":"shareholder proposals to companies. Non-compliance with these requirements could adversely affect","page_number":320,"box":{"x":116,"y":102,"width":757,"height":13}},{"id":"8baa74d3-146c-4bd9-bec8-4734f36ed3d0","block_type":"box","text":"BlackRock’s ability to serve its clients’ interests.","page_number":320,"box":{"x":117,"y":118,"width":358,"height":12}},{"id":"557bede0-654c-432c-89a1-9e15bde23eca","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":320,"box":{"x":223,"y":155,"width":559,"height":10}},{"id":"d372d712-38ea-4edc-acfe-928501e98577","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks","page_number":320,"box":{"x":116,"y":186,"width":758,"height":12}},{"id":"f0905122-23cf-4f10-bbaa-c27807e31f5a","block_type":"box","text":"and opportunities, is an important component of having an effective governance framework that","page_number":320,"box":{"x":116,"y":201,"width":714,"height":12}},{"id":"53eed796-77d8-4c71-9ce3-e9bdf796b7fb","block_type":"box","text":"supports durable, long-term financial value creation.","page_number":320,"box":{"x":116,"y":217,"width":385,"height":12}},{"id":"bbcca48a-4d06-459e-81d5-240cdd494540","block_type":"box","text":"10","page_number":320,"box":{"x":503,"y":217,"width":11,"height":6}},{"id":"83214592-480b-460a-a579-2d39f4c81518","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate","page_number":320,"box":{"x":116,"y":247,"width":703,"height":12}},{"id":"efe35d34-c1ff-43b9-a372-f5b2a89a51f2","block_type":"box","text":"companies’ strategy and business practices related to material sustainability-related risks and","page_number":320,"box":{"x":116,"y":262,"width":699,"height":12}},{"id":"3b666bb9-7793-4242-b90e-59986abfbc45","block_type":"box","text":"opportunities. We find it helpful when companies’ disclosures demonstrate that they have a resilient","page_number":320,"box":{"x":116,"y":278,"width":743,"height":12}},{"id":"4788db4d-3b65-40e2-9db1-a70fd21bd73a","block_type":"box","text":"business model that integrates material sustainability-related risks and opportunities into their strategy,","page_number":320,"box":{"x":117,"y":293,"width":766,"height":12}},{"id":"f423b0a9-3ce2-472f-b451-017b11bc5ba4","block_type":"box","text":"risk management, and metrics and targets, including industry-specific metrics.","page_number":320,"box":{"x":117,"y":309,"width":583,"height":12}},{"id":"5b2797f1-771d-4a82-995c-bc9663b79984","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions.","page_number":320,"box":{"x":116,"y":339,"width":766,"height":12}},{"id":"401d77b4-49b9-4c1d-810c-a24aa3d14345","block_type":"box","text":"The International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one","page_number":320,"box":{"x":116,"y":354,"width":743,"height":12}},{"id":"cce58783-943b-4ca2-b786-25b6d60906ac","block_type":"box","text":"such approach to standardization that we find useful in our analysis.","page_number":320,"box":{"x":116,"y":370,"width":503,"height":12}},{"id":"a484624a-ffd4-406a-ba30-9e75017230f0","block_type":"box","text":"11","page_number":320,"box":{"x":622,"y":370,"width":9,"height":6}},{"id":"898d0e81-f531-4670-b7cc-901ec7eca8b0","block_type":"box","text":"However, we do not mandate","page_number":320,"box":{"x":633,"y":370,"width":228,"height":11}},{"id":"291bcb48-03cd-4786-85b0-5b6c49e8ab1a","block_type":"box","text":"any specific disclosure framework companies should use, and recognize that companies may report","page_number":320,"box":{"x":116,"y":385,"width":747,"height":12}},{"id":"ed2c5f92-745b-4bee-a275-d4bbd340c1ad","block_type":"box","text":"using different standards, some of which may be required by regulation. In such cases, we ask that","page_number":320,"box":{"x":117,"y":401,"width":739,"height":12}},{"id":"101e7c9e-2d5b-4146-93f6-0cb88f3f4c0b","block_type":"box","text":"companies highlight the metrics that are industry- or company-specific.","page_number":320,"box":{"x":116,"y":416,"width":530,"height":12}},{"id":"cb21a26e-d7c3-47dd-8667-18994d1aefb5","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not","page_number":320,"box":{"x":116,"y":447,"width":702,"height":11}},{"id":"6bb92a9a-26b1-4459-a7c1-d06ada9dc3c7","block_type":"box","text":"prescribe timelines regarding when companies should make sustainability-related disclosures but","page_number":320,"box":{"x":117,"y":462,"width":725,"height":12}},{"id":"99ed7339-377a-4f91-91ca-eac81af7133d","block_type":"box","text":"appreciate it when companies produce them sufficiently in advance of their shareholder meeting, to the","page_number":320,"box":{"x":116,"y":477,"width":770,"height":12}},{"id":"d1c4e9c2-6fc5-4e48-b7ec-8e77a402279f","block_type":"box","text":"best of their abilities, to provide investors with time to assess the data and make informed voting","page_number":320,"box":{"x":117,"y":493,"width":718,"height":12}},{"id":"9726a4e9-0a8d-464e-bc7c-99f6428f0b55","block_type":"box","text":"decisions.","page_number":320,"box":{"x":116,"y":509,"width":79,"height":9}},{"id":"ca12b98b-4cc3-48de-9696-95d4948c42fb","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to","page_number":320,"box":{"x":117,"y":538,"width":700,"height":13}},{"id":"d3d97fb7-1d01-4c10-8820-304bdd93f223","block_type":"box","text":"companies on best practices and disclosures. While not a voting item, we find it helpful to our","page_number":320,"box":{"x":116,"y":554,"width":697,"height":12}},{"id":"ebb97f90-9c47-44a0-aa02-b35f34d26453","block_type":"box","text":"understanding of investment risk when companies disclose any relevant global sustainability-related","page_number":320,"box":{"x":117,"y":569,"width":746,"height":13}},{"id":"a8bedbb3-8cb4-4173-9fb5-d382c326c34a","block_type":"box","text":"standards adopted, the industry initiatives in which they participate, any peer group benchmarking","page_number":320,"box":{"x":116,"y":585,"width":731,"height":12}},{"id":"17de48f5-0374-45dc-8277-10c8b174d216","block_type":"box","text":"undertaken, and any assurance processes to help investors understand their approach to sustainable","page_number":320,"box":{"x":117,"y":601,"width":758,"height":12}},{"id":"46be8525-a3e0-40c7-a19a-9f998e330181","block_type":"box","text":"and responsible business practices.","page_number":320,"box":{"x":116,"y":616,"width":271,"height":12}},{"id":"4d151e21-3783-4cde-8fa4-b9b390bd6a17","block_type":"box","text":"Climate and nature-related risk","page_number":320,"box":{"x":116,"y":646,"width":251,"height":10}},{"id":"138f1e96-2dbd-4e63-b9dc-a4407f281c14","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term","page_number":320,"box":{"x":117,"y":676,"width":739,"height":12}},{"id":"d38ba6d3-7f37-4f8d-8776-8313bc921f87","block_type":"box","text":"financial value to investors. For companies facing material climate-related risks, we find it helpful when","page_number":320,"box":{"x":116,"y":692,"width":760,"height":12}},{"id":"15ed44e7-8423-418f-a201-794d58fcd307","block_type":"box","text":"they publicly disclose, consistent with their business model and sector, how they intend to deliver long","page_number":320,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"5dff65e7-3a4f-4c00-9e3d-09ec074c7e1e","block_type":"box","text":"term financial performance through the low-carbon transition, including where available, their transition","page_number":320,"box":{"x":116,"y":723,"width":760,"height":12}},{"id":"159444c0-cb08-44cc-9cd4-32a043ec5282","block_type":"box","text":"10","page_number":320,"box":{"x":144,"y":748,"width":8,"height":5}},{"id":"1c180288-0512-4681-b8d2-0f0f9d90fc87","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":320,"box":{"x":171,"y":748,"width":691,"height":10}},{"id":"300f5aa8-fda2-4659-bb37-38a36932aa80","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":320,"box":{"x":170,"y":761,"width":686,"height":9}},{"id":"c6fc0a01-9627-49cd-881e-7d0a16e86f66","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":320,"box":{"x":170,"y":774,"width":682,"height":9}},{"id":"0fdde24f-0f78-4502-b27d-ca9412968c2d","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":320,"box":{"x":170,"y":787,"width":683,"height":9}},{"id":"89c7d0b5-d6e7-4ed7-a10a-2bea756cd6bd","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":320,"box":{"x":170,"y":800,"width":360,"height":9}},{"id":"74f6149a-0901-4a71-b138-ea55eb630c50","block_type":"box","text":"11","page_number":320,"box":{"x":144,"y":815,"width":7,"height":5}},{"id":"6b572011-d938-4e06-b33b-753338d70e9d","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":320,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"42f0589c-e2af-47d6-a0ee-316f0664453f","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":320,"box":{"x":171,"y":828,"width":712,"height":9}},{"id":"b0d82b61-57e4-472d-b81d-15152c75df45","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":320,"box":{"x":170,"y":841,"width":649,"height":9}},{"id":"ef6c7b13-fad5-4d1f-a512-41953a43128c","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":320,"box":{"x":170,"y":854,"width":674,"height":9}},{"id":"6b19441f-1990-4067-92a6-fdb9c379027c","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":320,"box":{"x":170,"y":867,"width":647,"height":9}},{"id":"1fcdafd4-2522-424b-8914-cb1f6a489433","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":320,"box":{"x":171,"y":880,"width":312,"height":7}},{"id":"a277493a-7d90-4a62-b316-78d2efdb275c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":320,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"5494b150-b312-4f74-bc73-2aa365a93bec","block_type":"box","text":"Global Principles |","page_number":320,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"187b3b8c-37ff-49a1-94bd-3ac5e2d2e446","block_type":"box","text":"12","page_number":320,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"f521b2b6-5bcc-43b0-aafd-1df8a6319886","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":320,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"981167f3-2cd4-484e-a430-3447e08e6c57","block_type":"box","text":"plan.","page_number":321,"box":{"x":117,"y":87,"width":34,"height":12}},{"id":"a125e4e9-d578-4316-8e03-e77c89d03c1a","block_type":"box","text":"12, 13","page_number":321,"box":{"x":153,"y":87,"width":29,"height":7}},{"id":"06c4e6a4-654c-406c-8b91-30c03fd8687a","block_type":"box","text":"From company disclosures and engagement, we seek to understand the strategies","page_number":321,"box":{"x":182,"y":87,"width":626,"height":12}},{"id":"8e3845fd-6b0b-4c5a-96e3-6f65c1481788","block_type":"box","text":"companies have in place to manage material risks to, and opportunities for, their long-term business","page_number":321,"box":{"x":116,"y":102,"width":748,"height":13}},{"id":"2ba2bbcb-4f6b-4865-9ea1-62e35910de1e","block_type":"box","text":"model associated with a range of climate-related scenarios.","page_number":321,"box":{"x":117,"y":118,"width":446,"height":12}},{"id":"ab537e87-b116-4d54-8806-3c09289a3194","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate","page_number":321,"box":{"x":117,"y":152,"width":734,"height":12}},{"id":"9dffefd4-53ad-47c4-9aeb-412e6a56ff90","block_type":"box","text":"large companies to disclose such climate-related financial information, while in other jurisdictions these","page_number":321,"box":{"x":117,"y":168,"width":767,"height":12}},{"id":"53a661a6-bc15-41a0-a19c-25f86760baea","block_type":"box","text":"disclosures are viewed as best practice in the market.","page_number":321,"box":{"x":116,"y":183,"width":404,"height":12}},{"id":"6cc4bbf5-4bf3-469f-8f12-1c13a40efb6c","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company","page_number":321,"box":{"x":116,"y":217,"width":726,"height":12}},{"id":"840afded-74b9-433c-a9cd-4ac91e239fd5","block_type":"box","text":"specific climate-related risks and opportunities, and informing investment decisions. Such disclosures","page_number":321,"box":{"x":116,"y":233,"width":757,"height":12}},{"id":"95861cbf-c307-4a87-8d0f-1a6350238e6f","block_type":"box","text":"also provide investors with insights into how companies are managing the risks associated with a","page_number":321,"box":{"x":116,"y":248,"width":726,"height":12}},{"id":"1be83822-1f6d-41f5-8105-14c78b813e4e","block_type":"box","text":"transition to a low-carbon economy by managing their own carbon emissions or emissions intensities","page_number":321,"box":{"x":116,"y":264,"width":754,"height":12}},{"id":"81972f0d-8a24-4ca4-b94a-fcabad462e86","block_type":"box","text":"to the extent financially practicable.","page_number":321,"box":{"x":116,"y":279,"width":266,"height":12}},{"id":"299b2098-c328-4b95-951d-db8540c10c6b","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-,","page_number":321,"box":{"x":116,"y":313,"width":723,"height":12}},{"id":"960d47f6-a14c-4819-9100-21117a3dbbd8","block_type":"box","text":"medium- and long-term targets, ideally science-based where these are available for their sector, for","page_number":321,"box":{"x":117,"y":329,"width":742,"height":12}},{"id":"7504f645-1736-4895-8bfd-0459006c799a","block_type":"box","text":"scope 1 and 2 greenhouse gas emissions (GHG) reductions and to demonstrate how their targets are","page_number":321,"box":{"x":116,"y":344,"width":760,"height":12}},{"id":"e80292eb-dd09-4924-b999-6db8d1f78b71","block_type":"box","text":"consistent with the long-term financial interests of their investors.","page_number":321,"box":{"x":116,"y":360,"width":486,"height":12}},{"id":"ca727998-8abc-4fa5-81ba-b15654bbed93","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this","page_number":321,"box":{"x":116,"y":394,"width":766,"height":12}},{"id":"147e2d30-4d5d-4bdb-bca9-f1adb88e1103","block_type":"box","text":"stage, we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity,","page_number":321,"box":{"x":116,"y":409,"width":749,"height":13}},{"id":"e08c07ab-8ae1-400e-ac70-ca6567e623b3","block_type":"box","text":"regulatory uncertainty, concerns about double-counting, and lack of direct control by companies. We","page_number":321,"box":{"x":117,"y":425,"width":749,"height":12}},{"id":"affd3b1f-97e4-472a-861d-c7f7f0f8159a","block_type":"box","text":"welcome disclosures and commitments that companies choose to make regarding material scope 3","page_number":321,"box":{"x":116,"y":441,"width":744,"height":12}},{"id":"76d502f4-69fc-4a5e-b5c1-244efc2c6ed2","block_type":"box","text":"emissions and recognize that these are provided on a good-faith basis as methodology develops.","page_number":321,"box":{"x":116,"y":456,"width":728,"height":12}},{"id":"bfd8aa3a-f5f7-4f02-8d01-9d067257828f","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or","page_number":321,"box":{"x":117,"y":490,"width":742,"height":12}},{"id":"e0d37639-eb54-4593-951c-854c4d123a55","block_type":"box","text":"supply chains are materially reliant on natural capital, nature-related risks and opportunities may affect","page_number":321,"box":{"x":116,"y":506,"width":765,"height":12}},{"id":"af68d9a4-58a1-4259-9dd2-e6fb5194b948","block_type":"box","text":"their ability to generate long-term financial returns.","page_number":321,"box":{"x":116,"y":521,"width":372,"height":12}},{"id":"6a9ee6fc-761a-48f4-8159-ae66b9fb8442","block_type":"box","text":"14","page_number":321,"box":{"x":491,"y":521,"width":11,"height":6}},{"id":"2f97d53f-c6b8-44e4-9455-b78a98575fca","block_type":"box","text":"For these companies, we rely on disclosures to","page_number":321,"box":{"x":502,"y":521,"width":360,"height":12}},{"id":"a6f332ad-df42-4e03-ad49-2195a1aeeba8","block_type":"box","text":"understand how their strategies consider nature-related impacts and dependencies and to assess how","page_number":321,"box":{"x":117,"y":537,"width":765,"height":12}},{"id":"e2823729-9d71-433d-bef5-253fe6dc66c1","block_type":"box","text":"the board oversees these risks.","page_number":321,"box":{"x":116,"y":552,"width":232,"height":10}},{"id":"c68f3416-3330-4fd4-b58b-97c6ccdd4c02","block_type":"box","text":"15","page_number":321,"box":{"x":351,"y":552,"width":10,"height":6}},{"id":"b9d68219-ed43-4505-9a1f-a0ddcf418cbf","block_type":"box","text":"Companies’ impact on their workforce, supply chains, and communities","page_number":321,"box":{"x":116,"y":586,"width":580,"height":12}},{"id":"a9c6f825-e99b-485d-af9d-0306b5ad61fc","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term","page_number":321,"box":{"x":117,"y":620,"width":768,"height":12}},{"id":"c222e439-b8a0-4130-ac30-3f47d6be6bc6","block_type":"box","text":"financial performance. For many companies, key stakeholders include employees, business supply","page_number":321,"box":{"x":116,"y":636,"width":741,"height":12}},{"id":"1f5f66a7-27e6-4125-b454-5fd5eb448ee0","block_type":"box","text":"chains, clients and consumers, regulators, and the communities in which they operate.","page_number":321,"box":{"x":116,"y":651,"width":647,"height":12}},{"id":"01846b1a-f01d-474f-a352-50e34911774c","block_type":"box","text":"12","page_number":321,"box":{"x":144,"y":677,"width":8,"height":4}},{"id":"c189fb3a-feb4-40ae-8dc0-f82f7f613cf3","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":321,"box":{"x":170,"y":677,"width":685,"height":9}},{"id":"8a98a05a-1bec-4d0f-84f7-65e1618b34f5","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":321,"box":{"x":170,"y":690,"width":670,"height":9}},{"id":"f14fb392-9519-4bdc-889a-13b6ba83825f","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":321,"box":{"x":171,"y":702,"width":691,"height":10}},{"id":"8d039cf0-a236-4727-bffc-04633012acc0","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives,","page_number":321,"box":{"x":170,"y":715,"width":710,"height":10}},{"id":"69199c58-a74b-45c9-81ff-7561632118a3","block_type":"box","text":"and actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":321,"box":{"x":170,"y":728,"width":709,"height":10}},{"id":"ebf73bf7-93a4-43ca-b1a7-d677e97e4ba8","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. While transition plans can","page_number":321,"box":{"x":170,"y":741,"width":710,"height":10}},{"id":"c3c487e4-8d3b-49c0-a26b-fe4554db4491","block_type":"box","text":"be helpful disclosure, BIS does not make the preparation and production of transition plans a voting issue. BIS may","page_number":321,"box":{"x":170,"y":754,"width":684,"height":10}},{"id":"99317d1c-6b01-434a-a8d5-259e23d2ebc8","block_type":"box","text":"engage companies that have chosen to publish a transition plan to understand their planned actions and resource","page_number":321,"box":{"x":170,"y":767,"width":675,"height":10}},{"id":"06037448-8e5a-485f-98da-313c1e97151b","block_type":"box","text":"implications. Website accessed in December 2025.","page_number":321,"box":{"x":170,"y":780,"width":303,"height":9}},{"id":"f9274ca0-4c5d-4979-9605-3541e111271a","block_type":"box","text":"13","page_number":321,"box":{"x":144,"y":796,"width":8,"height":5}},{"id":"3263c6e1-f2bf-40bd-a73f-9e4df08311df","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December 2025.","page_number":321,"box":{"x":171,"y":796,"width":703,"height":10}},{"id":"00e6900e-0b1f-41a4-8420-df28949e45a2","block_type":"box","text":"14","page_number":321,"box":{"x":144,"y":812,"width":8,"height":5}},{"id":"538e1cdb-d5ad-446b-88c5-cf51b498e40e","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December 2025.","page_number":321,"box":{"x":171,"y":812,"width":697,"height":10}},{"id":"dc56602b-4077-4f1e-9e25-9aad951999cc","block_type":"box","text":"15","page_number":321,"box":{"x":144,"y":828,"width":8,"height":5}},{"id":"604b095a-df2e-416d-b4bf-7e3259ac4582","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":321,"box":{"x":170,"y":828,"width":660,"height":10}},{"id":"2a662390-8736-4b50-b310-8d816ac9be59","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of the","page_number":321,"box":{"x":170,"y":841,"width":704,"height":9}},{"id":"23e3d054-99eb-4afa-8502-4f3910af776f","block_type":"box","text":"Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":321,"box":{"x":170,"y":854,"width":689,"height":9}},{"id":"0487278f-fb4c-42e9-a480-a9ff30961e11","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":321,"box":{"x":170,"y":867,"width":680,"height":9}},{"id":"516f7abd-8c63-41d5-95d6-360aae5ba95b","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":321,"box":{"x":170,"y":880,"width":680,"height":9}},{"id":"f5970d2d-71eb-412e-844a-4ea4279d874d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":321,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"5dac3d88-2045-4474-92d2-005816c2f068","block_type":"box","text":"Global Principles |","page_number":321,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"365a82fc-484b-46dd-9612-7191fd5548cd","block_type":"box","text":"13","page_number":321,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"0737696d-d21f-497c-bd3c-52ad9237b95d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":321,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"65743573-fc1e-4620-ade3-5118796fe557","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives","page_number":322,"box":{"x":117,"y":87,"width":769,"height":12}},{"id":"b45a5763-4d8e-47b5-bbf1-b08c4e813ff1","block_type":"box","text":"are more likely to deliver durable, long-term financial performance. By contrast, we have found that","page_number":322,"box":{"x":116,"y":102,"width":739,"height":13}},{"id":"a417f26a-0792-4df0-a821-698825f2ca90","block_type":"box","text":"poor relationships may create adverse impacts that could expose companies to legal, regulatory,","page_number":322,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"49e87ce3-9781-438f-8cc7-e078e9ee0112","block_type":"box","text":"operational, and reputational risks. This is particularly relevant to a company’s workforce, which is","page_number":322,"box":{"x":116,"y":134,"width":730,"height":12}},{"id":"5ed4ef45-91aa-4d1e-94d2-13c4b868ef4c","block_type":"box","text":"central to long-term financial value creation.","page_number":322,"box":{"x":116,"y":149,"width":324,"height":12}},{"id":"45832077-db22-44c8-8a45-a800ae1d971a","block_type":"box","text":"16","page_number":322,"box":{"x":442,"y":149,"width":11,"height":6}},{"id":"8dd466c6-66e3-441a-aaa6-a584a765b86f","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how","page_number":322,"box":{"x":116,"y":179,"width":743,"height":13}},{"id":"e23252d9-a3b9-4b80-9b95-a88bd9efbc3d","block_type":"box","text":"they have identified their key stakeholders and considered their interests in business decision-making.","page_number":322,"box":{"x":116,"y":195,"width":763,"height":12}},{"id":"1f5e6763-a6fe-42ec-991c-b730def69537","block_type":"box","text":"In addition to understanding broader stakeholder relationships, BIS finds it helpful when companies","page_number":322,"box":{"x":117,"y":210,"width":740,"height":13}},{"id":"f7772ff5-7761-42fe-bce1-2d1b0a0bf8df","block_type":"box","text":"discuss how they consider the needs of their workforce today, and the skills required for their future","page_number":322,"box":{"x":116,"y":226,"width":742,"height":12}},{"id":"7e9fccee-b3e8-447c-9706-ea6ba0f03eae","block_type":"box","text":"business strategy. We are also interested in understanding how the board monitors and engages on","page_number":322,"box":{"x":117,"y":242,"width":747,"height":12}},{"id":"652c2920-2a8d-4295-91de-5a85393bac0a","block_type":"box","text":"these matters, given it is well positioned to ensure that the approach taken by management is informed","page_number":322,"box":{"x":116,"y":257,"width":770,"height":12}},{"id":"885a63e5-6a5e-4d66-b70d-cfede9ba15b0","block_type":"box","text":"by and aligns with the company’s strategy. BIS does not direct a company’s policies or practices, which","page_number":322,"box":{"x":117,"y":272,"width":771,"height":13}},{"id":"af64f16f-a4ac-47f3-83f6-403b30d2c363","block_type":"box","text":"are the responsibility of management and the board.","page_number":322,"box":{"x":116,"y":288,"width":394,"height":12}},{"id":"6b089f6f-fb3f-411e-9e3c-2b5004d5dca3","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse","page_number":322,"box":{"x":117,"y":318,"width":754,"height":12}},{"id":"52c5f624-c8ad-4557-b075-534137a0c476","block_type":"box","text":"impacts that could arise from their business practices and affect critical relationships with their","page_number":322,"box":{"x":117,"y":334,"width":701,"height":12}},{"id":"f9206ee0-7eb9-4d06-8f5e-a22e6bee1b36","block_type":"box","text":"stakeholders. We encourage companies to implement, to the extent appropriate, monitoring processes","page_number":322,"box":{"x":116,"y":350,"width":767,"height":12}},{"id":"fc2dbbe0-af15-4e23-aebc-2e334a9efcee","block_type":"box","text":"(often referred to as due diligence) to identify and mitigate potential adverse impacts and grievance","page_number":322,"box":{"x":117,"y":365,"width":740,"height":12}},{"id":"e38ab0b1-8dcc-4538-9863-b285fb8e47d6","block_type":"box","text":"mechanisms to remediate any actual adverse material impacts.","page_number":322,"box":{"x":117,"y":381,"width":474,"height":12}},{"id":"8ef396ec-6d57-441f-b6c8-8d4eae5b601e","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key","page_number":322,"box":{"x":116,"y":411,"width":729,"height":12}},{"id":"06ef410f-629d-4b2c-b1fa-e726b6288fdc","block_type":"box","text":"stakeholders and may convey concerns about board oversight in our voting on director elections or","page_number":322,"box":{"x":116,"y":426,"width":739,"height":12}},{"id":"873f52ac-8481-469e-bc01-506f23fdb102","block_type":"box","text":"supporting a business relevant shareholder proposal when, in our assessment, the board is not acting","page_number":322,"box":{"x":116,"y":442,"width":761,"height":12}},{"id":"46cfae95-3b76-49ab-af8f-662917c750c9","block_type":"box","text":"in shareholders’ long-term financial interests.","page_number":322,"box":{"x":117,"y":457,"width":337,"height":12}},{"id":"82901419-039d-44f1-9c47-d1fa32236506","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":322,"box":{"x":188,"y":495,"width":629,"height":10}},{"id":"0936655d-fb3d-498b-a7fb-4f317b55e45c","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on","page_number":322,"box":{"x":117,"y":526,"width":742,"height":12}},{"id":"b30a72fa-dfbc-40cb-8177-61acb6ce3c6c","block_type":"box","text":"behalf of clients at the global and regional level.","page_number":322,"box":{"x":117,"y":541,"width":358,"height":12}},{"id":"165bf218-a72c-4844-8c7b-52109b4a94a1","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the","page_number":322,"box":{"x":116,"y":572,"width":699,"height":12}},{"id":"1f023ced-0eb0-4c66-8e4c-217b363a4f3d","block_type":"box","text":"Committee) supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to","page_number":322,"box":{"x":117,"y":587,"width":760,"height":12}},{"id":"c66644f7-511a-460c-9d20-a3fae790aa3f","block_type":"box","text":"policies and procedures as well as market-level stewardship requirements. The Committee reviews","page_number":322,"box":{"x":117,"y":603,"width":740,"height":12}},{"id":"16c5e682-1f92-45a4-a874-442408a33153","block_type":"box","text":"and approves amendments to the Global Principles and regional voting guidelines. The Committee","page_number":322,"box":{"x":116,"y":618,"width":738,"height":12}},{"id":"d8799fcc-bf02-49ef-bf80-30522ad061c9","block_type":"box","text":"also reviews periodic reports regarding the votes cast by BIS on behalf of clients, as well as updates","page_number":322,"box":{"x":116,"y":634,"width":749,"height":12}},{"id":"327d6cb2-955c-47bd-9d27-8281fdcf2cb0","block_type":"box","text":"on material process issues, procedural changes, and other risk oversight considerations. The","page_number":322,"box":{"x":116,"y":649,"width":697,"height":12}},{"id":"b65c6c5d-1b03-4163-945f-a12227b5661d","block_type":"box","text":"Committee is chaired by the Global Heads of the Investment Stewardship function and its members","page_number":322,"box":{"x":117,"y":665,"width":737,"height":12}},{"id":"4b91d27a-254d-48e8-8d74-ef0c483cb056","block_type":"box","text":"include senior BlackRock executives with legal, risk, and other experience relevant to team oversight","page_number":322,"box":{"x":117,"y":680,"width":747,"height":12}},{"id":"495792e3-6f08-4bf0-99d5-42dc962d4e40","block_type":"box","text":"who are independent from the investment stewardship function.","page_number":322,"box":{"x":116,"y":696,"width":471,"height":12}},{"id":"8a810256-099c-45b5-b6ee-1e99538e5853","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with","page_number":322,"box":{"x":116,"y":726,"width":764,"height":12}},{"id":"10880843-8a79-4b94-8f22-593ed773008d","block_type":"box","text":"the Global Principles and regional voting guidelines. At the regional level, three regional Heads for the","page_number":322,"box":{"x":116,"y":742,"width":756,"height":12}},{"id":"775580b0-b5a0-4708-a7ca-fd58f540a487","block_type":"box","text":"Americas, APAC, and EMEA oversee BIS’ activities for their specific markets.","page_number":322,"box":{"x":116,"y":757,"width":574,"height":12}},{"id":"6e191bc7-ac13-4050-a4e9-46f6b57878db","block_type":"box","text":"VOTE EXECUTION","page_number":322,"box":{"x":425,"y":795,"width":148,"height":10}},{"id":"5c7c3590-070f-4860-ae37-f238d06055e1","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We","page_number":322,"box":{"x":117,"y":825,"width":739,"height":13}},{"id":"dd3f4f00-4808-4a2d-b09c-84b37a2c5ea3","block_type":"box","text":"have processes in place to consider all proxies for which we have voting authority, and submit voting","page_number":322,"box":{"x":117,"y":841,"width":751,"height":12}},{"id":"7a261f84-ff42-4909-a82a-470589954d62","block_type":"box","text":"16","page_number":322,"box":{"x":144,"y":866,"width":8,"height":5}},{"id":"c220c1e8-e926-4cdf-a1f2-231e832738f5","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":322,"box":{"x":171,"y":866,"width":677,"height":10}},{"id":"6e6b6185-2c92-481d-b50e-0a2d367116dd","block_type":"box","text":"December 2025.","page_number":322,"box":{"x":171,"y":879,"width":97,"height":8}},{"id":"5e6faa7f-0ce8-4229-bec4-1aa6dab931f2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":322,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"38b55293-7c32-4a76-b2cd-b801b6fcab34","block_type":"box","text":"Global Principles |","page_number":322,"box":{"x":722,"y":909,"width":132,"height":12}},{"id":"0841079d-7838-4637-945c-b8a441d8f902","block_type":"box","text":"14","page_number":322,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"9f186f52-ecee-43b2-afd9-214bccec6aff","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":322,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"92465b54-a35a-439f-bf57-baf20e88acb2","block_type":"box","text":"decisions, or refrain from voting when logistical issues arise (see below). The BIS Benchmark","page_number":323,"box":{"x":116,"y":87,"width":698,"height":12}},{"id":"9688bbc9-0ae2-40fa-80c4-e298ed5e7e8c","block_type":"box","text":"Policies – and the vote decisions made consistent with those policies – reflect our reasonable and","page_number":323,"box":{"x":117,"y":102,"width":730,"height":12}},{"id":"8d484667-6d7a-4e0c-a7e8-be969cff915f","block_type":"box","text":"independent judgment and are made without regard to the relationship between the issuer of the proxy","page_number":323,"box":{"x":117,"y":118,"width":766,"height":12}},{"id":"3c22b2b5-634e-45fb-af89-01adf322691f","block_type":"box","text":"(or any shareholder proponent or dissident shareholder) and the Fund, the Fund’s affiliates (if any),","page_number":323,"box":{"x":117,"y":134,"width":739,"height":12}},{"id":"57afa07b-6ea3-4d26-96db-6cbafa377b65","block_type":"box","text":"BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts management policies and","page_number":323,"box":{"x":117,"y":149,"width":768,"height":12}},{"id":"f50e9f2b-edf5-469f-aa03-2caeef94a964","block_type":"box","text":"procedures,” below).","page_number":323,"box":{"x":117,"y":165,"width":157,"height":12}},{"id":"28ebff00-7bf4-456b-b58f-c3bed73a089d","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well","page_number":323,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"fd432800-584e-4db1-800a-12a1d58a56fd","block_type":"box","text":"as the cost of voting such proxies on behalf of our clients. These issues include, but are not limited to:","page_number":323,"box":{"x":116,"y":212,"width":761,"height":12}},{"id":"33388e5a-b392-4a02-8d89-014df289f29d","block_type":"box","text":"1) untimely notice of shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3)","page_number":323,"box":{"x":118,"y":227,"width":754,"height":12}},{"id":"e4fda0b1-9a04-4e72-a25a-34b1cd3fbce8","block_type":"box","text":"requirements to vote proxies in person; 4) “share-blocking” (requirements that investors who exercise","page_number":323,"box":{"x":117,"y":243,"width":756,"height":12}},{"id":"b61da382-a188-47f5-ad78-878b3544b0d2","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":323,"box":{"x":116,"y":258,"width":728,"height":12}},{"id":"a124dca3-a35b-4f55-b6a4-51277e7c2cec","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); 5) potential difficulties in","page_number":323,"box":{"x":116,"y":274,"width":701,"height":12}},{"id":"955e2909-ac91-40b7-bbd3-b637b16e0612","block_type":"box","text":"translating the proxy; 6) regulatory constraints; and 7) requirements to provide local agents with","page_number":323,"box":{"x":116,"y":289,"width":714,"height":12}},{"id":"e8cc2a7e-3226-432c-832c-e127745b6d9b","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":323,"box":{"x":117,"y":305,"width":706,"height":12}},{"id":"5cddf034-b353-4b65-b87b-62a2218a8a8f","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":323,"box":{"x":116,"y":320,"width":742,"height":12}},{"id":"833fae0c-3bd9-44ee-8501-30ce7e189a81","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is","page_number":323,"box":{"x":117,"y":352,"width":758,"height":12}},{"id":"f218b706-5a44-4dd0-9ed5-b012e8454726","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if","page_number":323,"box":{"x":116,"y":368,"width":755,"height":12}},{"id":"81ec6758-1f1b-4ab4-8b28-cd6a78ffb3b9","block_type":"box","text":"the costs (including but not limited to opportunity costs associated with share-blocking constraints)","page_number":323,"box":{"x":116,"y":383,"width":734,"height":12}},{"id":"6aa8c55f-ccd2-4b48-bf46-1a8650f4db87","block_type":"box","text":"associated with exercising a vote are expected to outweigh the benefit the client would derive by voting","page_number":323,"box":{"x":116,"y":399,"width":770,"height":12}},{"id":"d74bd5dc-07f7-43bf-a19e-575b9660d819","block_type":"box","text":"on the proposal.","page_number":323,"box":{"x":116,"y":414,"width":125,"height":12}},{"id":"38d2b282-1bad-4824-b4d6-22212354ddc1","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":323,"box":{"x":265,"y":454,"width":475,"height":10}},{"id":"d4a0eadb-3337-45be-9f54-7307ce51d543","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business","page_number":323,"box":{"x":117,"y":486,"width":724,"height":12}},{"id":"3e88c829-8255-48df-b433-32e4366a3952","block_type":"box","text":"partnership or enterprise-level vendor management activities.","page_number":323,"box":{"x":117,"y":501,"width":460,"height":12}},{"id":"0b35cd5f-4dd9-4ee5-8bcc-94683b18644c","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’","page_number":323,"box":{"x":117,"y":533,"width":739,"height":12}},{"id":"d689acb7-3a16-4ac1-a4d9-d6b9fad45bb5","block_type":"box","text":"proxy voting activity. Such influence might stem from any relationship between the investee company","page_number":323,"box":{"x":117,"y":549,"width":755,"height":12}},{"id":"c5c1d9a5-52dc-40af-8658-ebaf81403044","block_type":"box","text":"(or any shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund","page_number":323,"box":{"x":117,"y":564,"width":766,"height":12}},{"id":"33034d87-59b7-413d-8de4-d905fcef0a0d","block_type":"box","text":"or a Fund’s affiliates, or BlackRock employees.","page_number":323,"box":{"x":116,"y":580,"width":354,"height":12}},{"id":"a000aae9-9945-4512-bf3f-12877b3889f6","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":323,"box":{"x":117,"y":611,"width":630,"height":13}},{"id":"407a5019-d2ed-42d8-bd2d-e027ed111ba7","block_type":"box","text":"SECURITIES LENDING","page_number":323,"box":{"x":410,"y":643,"width":185,"height":10}},{"id":"91690a82-f784-4b44-b35f-0892b6c49423","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending","page_number":323,"box":{"x":116,"y":675,"width":704,"height":12}},{"id":"f602870e-a406-40f9-888a-a251e4a66539","block_type":"box","text":"securities enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending","page_number":323,"box":{"x":116,"y":690,"width":729,"height":13}},{"id":"2685dfd4-35eb-4288-bf4c-ac48b530a6cd","block_type":"box","text":"agreements allow it to recall securities out on loan at any time. BlackRock (or any other lender) does","page_number":323,"box":{"x":116,"y":706,"width":746,"height":12}},{"id":"bb85e16c-fe77-4199-8358-19cc1531d57e","block_type":"box","text":"not retain voting rights for securities out on loan. Entitlements associated with the lent securities","page_number":323,"box":{"x":117,"y":721,"width":709,"height":13}},{"id":"a24488ab-ba81-465e-b9c5-05b3f1fd2692","block_type":"box","text":"(dividends, coupons, etc.), while on loan are paid back to the lender of the security as stipulated in","page_number":323,"box":{"x":117,"y":737,"width":727,"height":12}},{"id":"d0586af6-41a5-4818-8fe7-e3c569372da4","block_type":"box","text":"industry standard legal agreements.","page_number":323,"box":{"x":117,"y":753,"width":265,"height":12}},{"id":"8d184352-d6cc-4fd2-82b7-2f255a17167e","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote","page_number":323,"box":{"x":116,"y":784,"width":735,"height":12}},{"id":"2edf4175-e3d5-4a6d-9697-208e079210a4","block_type":"box","text":"shares on loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset","page_number":323,"box":{"x":116,"y":800,"width":767,"height":12}},{"id":"cdbf019a-0775-460a-a3b3-0ce7bdc8ea0d","block_type":"box","text":"manager to our clients in helping them achieve their investment goals. 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As a","page_number":331,"box":{"x":116,"y":227,"width":740,"height":12}},{"id":"64f9f37a-9f72-4dc7-853e-4f087b7c43a8","block_type":"box","text":"general point, the team looks to companies that are important to the transition to a low-carbon","page_number":331,"box":{"x":116,"y":242,"width":702,"height":12}},{"id":"c95a4f1f-b1d9-46af-a041-07a7dd9712c6","block_type":"box","text":"economy to explain the strategy and governance frameworks that they have determined most","page_number":331,"box":{"x":116,"y":258,"width":700,"height":12}},{"id":"6403b6f7-09fb-47e0-9bb3-d23c6a303e8c","block_type":"box","text":"appropriate, which may include:","page_number":331,"box":{"x":116,"y":273,"width":241,"height":12}},{"id":"a2a6247d-ecea-4dea-99da-c18cae458cb6","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit","page_number":331,"box":{"x":150,"y":304,"width":688,"height":12}},{"id":"b96baf51-f67a-4e5f-aa31-8d01fb9c1675","block_type":"box","text":"average global temperature rise to 1.5°C above pre-industrial levels. This would typically","page_number":331,"box":{"x":184,"y":320,"width":661,"height":12}},{"id":"cc5226c6-3f10-4c11-b7c2-3929cd27a723","block_type":"box","text":"include a long-term strategy to achieve net-zero GHG emissions by 2050, with appropriate","page_number":331,"box":{"x":184,"y":335,"width":676,"height":12}},{"id":"97ab76a6-bf25-470d-abec-02d5a6d0b5da","block_type":"box","text":"near- and medium-term milestones to assess their progress.","page_number":331,"box":{"x":184,"y":351,"width":453,"height":12}},{"id":"518b288b-a8c9-407d-b674-018899fd3498","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data","page_number":331,"box":{"x":150,"y":374,"width":724,"height":12}},{"id":"0d1822c2-5845-44d4-b7cc-93b7fbdbecaa","block_type":"box","text":"supports investors in making informed decisions. The International Sustainability Standards","page_number":331,"box":{"x":184,"y":389,"width":683,"height":12}},{"id":"808d88fa-88ce-4115-a14e-25c362f94c5f","block_type":"box","text":"Board (ISSB) standards, IFRS S1 and S2, represent one such approach to standardization","page_number":331,"box":{"x":184,"y":405,"width":678,"height":12}},{"id":"8b8d6546-8125-48cf-a10b-c5e7dc16a807","block_type":"box","text":"that the dedicated team finds useful in its analysis.","page_number":331,"box":{"x":183,"y":420,"width":374,"height":12}},{"id":"5a555e6f-b1a2-44b8-ab35-bd305aa210de","block_type":"box","text":"14","page_number":331,"box":{"x":559,"y":420,"width":11,"height":7}},{"id":"de2d1126-b524-4e44-b688-c7b073977bd6","block_type":"box","text":",","page_number":331,"box":{"x":572,"y":428,"width":8,"height":4}},{"id":"1fd48478-4fa2-4f65-84fc-ff6839ade285","block_type":"box","text":"15","page_number":331,"box":{"x":581,"y":420,"width":11,"height":7}},{"id":"2d012d76-cd0b-494f-be64-244a652e650d","block_type":"box","text":"IFRS S1 addresses the general","page_number":331,"box":{"x":592,"y":420,"width":244,"height":12}},{"id":"4430321b-4309-4d16-afde-c1eda08427c0","block_type":"box","text":"requirements of sustainability reporting and IFRS S2 sets out the disclosures that provide","page_number":331,"box":{"x":184,"y":436,"width":667,"height":12}},{"id":"d71f27bd-b043-4227-9d7b-528a5aa37fb9","block_type":"box","text":"investors with decision-useful information about a company’s most significant climate- and","page_number":331,"box":{"x":184,"y":451,"width":674,"height":12}},{"id":"4c062695-e59f-4023-bd84-495c2668823f","block_type":"box","text":"low-carbon transition-related risks and opportunities. This includes receiving independent,","page_number":331,"box":{"x":184,"y":467,"width":671,"height":12}},{"id":"e77eeae2-df88-4895-8eff-b296c69a9ca1","block_type":"box","text":"third-party assurances, as audit and assurance standards are developed.","page_number":331,"box":{"x":183,"y":482,"width":549,"height":12}},{"id":"f4817cf6-104f-4507-bc23-25b9fd5a4551","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions.","page_number":331,"box":{"x":150,"y":506,"width":536,"height":12}},{"id":"c226f468-8706-476b-9a81-fef97660e20b","block_type":"box","text":"16","page_number":331,"box":{"x":689,"y":506,"width":10,"height":6}},{"id":"d00d71b2-572d-4470-83a8-ea108695d0db","block_type":"box","text":",","page_number":331,"box":{"x":701,"y":514,"width":8,"height":3}},{"id":"394921f8-f0e8-4d93-a5fe-0cbd7c380e9c","block_type":"box","text":"17","page_number":331,"box":{"x":710,"y":506,"width":11,"height":6}},{"id":"f09bb5f3-7ee9-477a-8350-a58b2dd5325e","block_type":"box","text":"In addition, the","page_number":331,"box":{"x":721,"y":506,"width":120,"height":11}},{"id":"62f5c5f6-4494-41b6-a451-d97b6847656a","block_type":"box","text":"dedicated team looks to companies to disclose their emissions reduction targets for scope 1","page_number":331,"box":{"x":184,"y":521,"width":687,"height":12}},{"id":"e12d73b5-12ce-4623-aec6-e3baac9ab217","block_type":"box","text":"and 2 emissions, science-based where possible. The team welcomes disclosure of targets or","page_number":331,"box":{"x":184,"y":537,"width":695,"height":12}},{"id":"75557c20-d03d-45c9-8149-a823463ca476","block_type":"box","text":"13","page_number":331,"box":{"x":144,"y":572,"width":8,"height":5}},{"id":"8ba38884-6844-491b-a886-352231d305df","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where reporting","page_number":331,"box":{"x":170,"y":572,"width":695,"height":10}},{"id":"7836106c-268b-4f38-8964-ebf83b3afc3f","block_type":"box","text":"methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their business","page_number":331,"box":{"x":170,"y":585,"width":686,"height":10}},{"id":"0767bb67-130c-488c-a4fb-94648564ea85","block_type":"box","text":"models through the low-carbon transition may require forward-looking statements.","page_number":331,"box":{"x":170,"y":598,"width":485,"height":10}},{"id":"eec80bd1-3d1e-412b-b692-289e47a55fe7","block_type":"box","text":"14","page_number":331,"box":{"x":144,"y":614,"width":8,"height":4}},{"id":"65325f0b-04fc-4507-a171-0a78ac598ad5","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":331,"box":{"x":170,"y":613,"width":666,"height":10}},{"id":"460c65a1-4daf-4848-aedf-5d56eeb4e76b","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":331,"box":{"x":171,"y":626,"width":712,"height":10}},{"id":"aba49787-1edf-415f-9b25-0e6f142c2363","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":331,"box":{"x":170,"y":639,"width":649,"height":10}},{"id":"652355bf-0d45-400c-833f-456d1fb13c4c","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":331,"box":{"x":170,"y":652,"width":674,"height":10}},{"id":"6666f0ed-0166-426c-8df9-d8934930ae6d","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":331,"box":{"x":170,"y":665,"width":647,"height":10}},{"id":"4b1295e5-e380-40f8-8f2c-6241dcde8fa0","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":331,"box":{"x":171,"y":678,"width":312,"height":8}},{"id":"3be1b47f-7245-4d27-b21c-8345dbb4f99c","block_type":"box","text":"15","page_number":331,"box":{"x":144,"y":694,"width":8,"height":5}},{"id":"2edddfea-fd5e-4323-9e4e-760d5cfb7b15","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to doing","page_number":331,"box":{"x":170,"y":694,"width":694,"height":9}},{"id":"0d861a04-c29f-4e9e-9b8f-5fe45121f96b","block_type":"box","text":"so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":331,"box":{"x":170,"y":706,"width":651,"height":10}},{"id":"ad7963fe-3d88-42ff-a140-c84ae41b9177","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we ask","page_number":331,"box":{"x":170,"y":719,"width":698,"height":10}},{"id":"62ace8ad-77a5-4bd1-8484-fd5a475b6ede","block_type":"box","text":"that companies highlight the metrics that are industry- or company-specific. We also recognize that companies may be","page_number":331,"box":{"x":170,"y":732,"width":703,"height":10}},{"id":"d7856d00-4679-4b3e-aaa0-7c35c71dfede","block_type":"box","text":"phasing in reporting over several years. We do not prescribe timelines regarding when companies should make","page_number":331,"box":{"x":170,"y":745,"width":661,"height":10}},{"id":"c11f0764-d7aa-46cf-a65f-4e699db1f256","block_type":"box","text":"sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of their","page_number":331,"box":{"x":170,"y":758,"width":664,"height":10}},{"id":"6a0aff62-0f22-446e-a4a5-0810114c2864","block_type":"box","text":"shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make informed","page_number":331,"box":{"x":170,"y":771,"width":698,"height":10}},{"id":"cb61403f-fda8-42c3-9ca8-035f7db2c33b","block_type":"box","text":"voting decisions.","page_number":331,"box":{"x":170,"y":784,"width":98,"height":10}},{"id":"f19dca57-6e67-49f7-bbe0-178055053445","block_type":"box","text":"16","page_number":331,"box":{"x":144,"y":800,"width":8,"height":4}},{"id":"cef7e808-7e5d-4bf5-99fe-1fc45000fb15","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":331,"box":{"x":171,"y":799,"width":685,"height":10}},{"id":"ba648eff-70e6-4954-b4ee-f2414cc0ce8e","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in December","page_number":331,"box":{"x":170,"y":812,"width":708,"height":10}},{"id":"c65b8f4e-bae7-4173-b09f-11c19de26f7b","block_type":"box","text":"2025.","page_number":331,"box":{"x":170,"y":825,"width":32,"height":8}},{"id":"fad13ef9-c9ee-412f-aa67-0b11af451014","block_type":"box","text":"17","page_number":331,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"d7ce0318-de45-402c-82db-e57ab565d284","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":331,"box":{"x":171,"y":841,"width":680,"height":9}},{"id":"8afa18f3-845f-467e-9fa4-89142f96a7aa","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":331,"box":{"x":171,"y":854,"width":706,"height":9}},{"id":"e3929396-c8aa-431d-a5f0-dd40da44dff5","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":331,"box":{"x":170,"y":867,"width":677,"height":9}},{"id":"3b81b712-205f-443d-989b-5311466cef43","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":331,"box":{"x":170,"y":880,"width":650,"height":9}},{"id":"99164bf7-0971-439f-8e4e-28a470f086ca","block_type":"box","text":"BlackRock Investment Stewardship","page_number":331,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"2e7eb6f5-61dc-4f84-93d7-dcf97b4e47e1","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":331,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"9c2710bc-212a-46a9-b6e4-dfc8da8c85f2","block_type":"box","text":"6","page_number":331,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"f5300d24-d2a1-4379-b5a1-2106580b55b5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":331,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9ff728b6-7219-4948-bae1-0a2f3d7e4e9d","block_type":"box","text":"indicative goals, where companies have set them, for scope 3 emissions reductions. 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While we do not believe","page_number":332,"box":{"x":183,"y":211,"width":672,"height":12}},{"id":"f22eb38e-37a9-407d-87fc-e3195b81638d","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control,","page_number":332,"box":{"x":184,"y":227,"width":693,"height":12}},{"id":"de147b00-c7cb-4d44-8d76-9c3aabaf960a","block_type":"box","text":"where relevant, we look for disclosures on how the company approaches the low-carbon","page_number":332,"box":{"x":183,"y":242,"width":662,"height":12}},{"id":"732328c3-ad0c-415a-af7d-927dfb71706e","block_type":"box","text":"transition in these cases. This may include plans and targets to grow businesses that","page_number":332,"box":{"x":183,"y":258,"width":636,"height":12}},{"id":"7057adb5-5cfc-423f-aff5-0e5ba9d388c6","block_type":"box","text":"contribute to real world decarbonization, forward-looking capital or procurement allocation","page_number":332,"box":{"x":184,"y":273,"width":670,"height":12}},{"id":"902c3101-b0b8-4262-9023-6d124037d81d","block_type":"box","text":"plans to net-zero aligned activities or suppliers, and strategies to mitigate material transition","page_number":332,"box":{"x":184,"y":289,"width":684,"height":12}},{"id":"73febd49-65cc-490f-889e-1c1d210c3299","block_type":"box","text":"risks.","page_number":332,"box":{"x":184,"y":304,"width":43,"height":10}},{"id":"190bc168-ca22-429a-9d7d-1e88f925b4df","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical","page_number":332,"box":{"x":150,"y":327,"width":729,"height":12}},{"id":"8b55f0bf-b0f2-43a6-ab8f-46c620fa7100","block_type":"box","text":"risks – such as acute risks from extreme weather events or chronic risks from long-term shifts","page_number":332,"box":{"x":184,"y":343,"width":699,"height":12}},{"id":"579257a1-5111-49fe-baa3-209b8b64b296","block_type":"box","text":"in climate patterns – and how these risks could reasonably be expected to affect the","page_number":332,"box":{"x":184,"y":358,"width":629,"height":12}},{"id":"948d2116-b1e5-4dbd-b7ad-8a13c9cc5f25","block_type":"box","text":"company’s operations, assets, or supply chains.","page_number":332,"box":{"x":184,"y":374,"width":361,"height":12}},{"id":"cb46326a-5f10-42ba-aae3-c8951c4d1c57","block_type":"box","text":"Transition plans","page_number":332,"box":{"x":118,"y":405,"width":132,"height":12}},{"id":"09c2b645-6548-40fe-8357-78ced543b26e","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their","page_number":332,"box":{"x":116,"y":436,"width":698,"height":12}},{"id":"044cd2a8-7801-4733-b4f5-326fc1977f9d","block_type":"box","text":"low-carbon transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets,","page_number":332,"box":{"x":117,"y":451,"width":761,"height":12}},{"id":"8a02899c-3eeb-4ebe-bf90-c3a2f7976109","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as","page_number":332,"box":{"x":116,"y":467,"width":724,"height":12}},{"id":"962b5191-4dd6-477e-9939-5edc3dcf6717","block_type":"box","text":"reducing its greenhouse gas emissions” (see Appendix 1).","page_number":332,"box":{"x":117,"y":482,"width":430,"height":12}},{"id":"e3767517-d272-4cb6-b5c3-51c579f597c1","block_type":"box","text":"19","page_number":332,"box":{"x":550,"y":482,"width":10,"height":7}},{"id":"aaeb12cd-3255-496c-9e7b-89eda1662a36","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to","page_number":332,"box":{"x":116,"y":513,"width":760,"height":12}},{"id":"cb40c431-b4b6-4d36-9f2e-21bcd8722728","block_type":"box","text":"corporate transition plans.","page_number":332,"box":{"x":116,"y":529,"width":192,"height":12}},{"id":"036801b2-bea1-4343-a498-900292090399","block_type":"box","text":"20","page_number":332,"box":{"x":310,"y":529,"width":11,"height":6}},{"id":"5688f0e5-bf67-453b-9b0c-52f93fff9784","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans","page_number":332,"box":{"x":321,"y":529,"width":523,"height":12}},{"id":"cdba7799-ef67-4b71-af84-e4d8c014a6f9","block_type":"box","text":"highlights the convergence of reporting approaches.","page_number":332,"box":{"x":117,"y":544,"width":391,"height":12}},{"id":"1116f294-7580-4ae4-aeb6-d54196b89a1b","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these","page_number":332,"box":{"x":116,"y":575,"width":697,"height":12}},{"id":"13ffb755-256f-4709-bae6-58a54768137f","block_type":"box","text":"disclosures typically provide valuable insights that inform the dedicated team’s approach to engaging","page_number":332,"box":{"x":116,"y":591,"width":754,"height":12}},{"id":"b6db18b9-7cca-42ab-92f6-e16e913c7c54","block_type":"box","text":"and voting on matters related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":332,"box":{"x":116,"y":606,"width":761,"height":12}},{"id":"435bd576-bb94-46d8-bc4c-18440661605a","block_type":"box","text":"Boards and directors","page_number":332,"box":{"x":117,"y":638,"width":173,"height":9}},{"id":"81ee7b31-33d2-4af1-ae0c-216e6014f783","block_type":"box","text":"An effective and well-functioning board that has appropriate governance structures to facilitate","page_number":332,"box":{"x":116,"y":668,"width":699,"height":12}},{"id":"a592f72d-21b0-4818-98e8-f64af09c8017","block_type":"box","text":"oversight of a company’s management and strategic initiatives is critical to the company’s ability to","page_number":332,"box":{"x":116,"y":684,"width":731,"height":12}},{"id":"7f64ce8c-0003-4c38-9f22-da3819117a34","block_type":"box","text":"18","page_number":332,"box":{"x":144,"y":722,"width":8,"height":5}},{"id":"887a4d6e-b3b4-475a-8e08-6c0eb53519e0","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly traded","page_number":332,"box":{"x":170,"y":722,"width":707,"height":10}},{"id":"509a8f21-f141-4cab-97d0-6fa148ff70f2","block_type":"box","text":"companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":332,"box":{"x":170,"y":735,"width":645,"height":10}},{"id":"46034322-8807-4f43-96d1-c3efe7dc1ba1","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":332,"box":{"x":170,"y":748,"width":686,"height":9}},{"id":"60648a52-957e-4881-a3c2-2575b4d76729","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":332,"box":{"x":170,"y":761,"width":663,"height":9}},{"id":"3e2ec3bb-27c6-4a78-be0d-7a8edb7a6832","block_type":"box","text":"material to their business models.","page_number":332,"box":{"x":170,"y":774,"width":199,"height":7}},{"id":"20170ee0-9672-453f-aea9-6b948ebdf482","block_type":"box","text":"19","page_number":332,"box":{"x":144,"y":789,"width":8,"height":5}},{"id":"5903b156-9de3-43bf-af68-b56f33e4b412","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in December","page_number":332,"box":{"x":171,"y":789,"width":712,"height":10}},{"id":"9ed8ee9d-6d29-4907-840e-ad0782d22dcd","block_type":"box","text":"2025.","page_number":332,"box":{"x":170,"y":802,"width":32,"height":8}},{"id":"2dc1df42-fc80-47f9-9d09-c3469f4a35e0","block_type":"box","text":"20","page_number":332,"box":{"x":143,"y":815,"width":9,"height":5}},{"id":"e7d35ab1-421b-4e63-86e5-84df6b9557ab","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their intentions to","page_number":332,"box":{"x":171,"y":815,"width":705,"height":10}},{"id":"e9baa087-65f2-4319-8c7a-e599eda820e4","block_type":"box","text":"require them or already have requirements in place, such as Australia, Brazil, and the European Union (please see the","page_number":332,"box":{"x":170,"y":828,"width":704,"height":10}},{"id":"1ed34af5-1069-4fa0-9b71-2e3411b0a389","block_type":"box","text":"International Transition Plan Network for information). BlackRock views transition plans as a method for a company to","page_number":332,"box":{"x":171,"y":841,"width":697,"height":9}},{"id":"cc0940eb-c453-487a-a1cd-321b25be6e5a","block_type":"box","text":"both internally assess and externally communicate its long-term strategy, ambition, objectives, and actions to create","page_number":332,"box":{"x":170,"y":854,"width":687,"height":9}},{"id":"74a1d4f3-d286-45e5-aa47-b0c6a57dc4a6","block_type":"box","text":"financial value through the global transition towards a low-carbon economy. Across the landscape there remains","page_number":332,"box":{"x":170,"y":867,"width":666,"height":9}},{"id":"4334776b-f1fe-4aef-95c8-33778d2886d0","block_type":"box","text":"divergence on the objectives of such plans and the details they should contain. 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The Guidelines consider the whole board to","page_number":333,"box":{"x":150,"y":149,"width":719,"height":12}},{"id":"f4694ce1-8884-4170-b548-b6bcd0c88904","block_type":"box","text":"have responsibility for oversight of the company’s long-term strategy, including those aspects","page_number":333,"box":{"x":150,"y":165,"width":696,"height":12}},{"id":"ac3ae003-06e7-4f5c-8492-809bfdad0bbf","block_type":"box","text":"related to the transition to a low-carbon economy.","page_number":333,"box":{"x":150,"y":180,"width":373,"height":12}},{"id":"7ae9cbeb-0a72-4769-a17c-376a8812cf93","block_type":"box","text":"• Management has established a robust low-carbon transition framework and long-term strategy,","page_number":333,"box":{"x":125,"y":203,"width":735,"height":12}},{"id":"b800aaf8-9aeb-4420-98f5-e2eacf80a1bd","block_type":"box","text":"with clear accountability for delivery by senior executives.","page_number":333,"box":{"x":149,"y":219,"width":432,"height":12}},{"id":"4ec570d3-5722-4ccb-bd9e-745db067b1d6","block_type":"box","text":"• The capital management strategy explains how the company allocates investments to (traditional","page_number":333,"box":{"x":125,"y":242,"width":749,"height":12}},{"id":"65725f7f-4817-4a49-b795-4077cfaade32","block_type":"box","text":"and next generation) business lines and innovation, and returns cash to shareholders, consistent","page_number":333,"box":{"x":150,"y":258,"width":724,"height":12}},{"id":"4d874c4c-33eb-4f36-af1e-3f478f6fd85d","block_type":"box","text":"with the company’s stated low-carbon transition strategy.","page_number":333,"box":{"x":149,"y":273,"width":428,"height":12}},{"id":"0113f4b1-2d12-48af-92db-959ae3ce7509","block_type":"box","text":"• The climate and low-carbon transition risks most likely to significantly impact the business are","page_number":333,"box":{"x":125,"y":296,"width":724,"height":12}},{"id":"ddf537f3-269c-46c0-a9dc-4231a06a1da5","block_type":"box","text":"integrated into the company’s enterprise risk management processes and reporting.","page_number":333,"box":{"x":150,"y":312,"width":627,"height":12}},{"id":"d162e131-55c5-4431-932c-936885f4fd0b","block_type":"box","text":"• The company has set scope 1 and 2 GHG emissions reduction targets, science-based and","page_number":333,"box":{"x":125,"y":335,"width":704,"height":12}},{"id":"20f0165a-2b0d-472d-becc-81c4c130d38a","block_type":"box","text":"independently verified where possible, against a baseline, that are consistent with the ambition to","page_number":333,"box":{"x":150,"y":351,"width":726,"height":12}},{"id":"6592e0c1-f773-4bf5-b517-8b8403c99682","block_type":"box","text":"limit average global temperature rise to no more than 1.5°C above pre-industrial levels.","page_number":333,"box":{"x":150,"y":366,"width":651,"height":12}},{"id":"d7f33378-a582-402f-a4cc-4503877dfc3d","block_type":"box","text":"• There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets over","page_number":333,"box":{"x":125,"y":389,"width":757,"height":12}},{"id":"8c76ea8c-3b29-42a7-bacf-b6a63090807c","block_type":"box","text":"time and its long-term low-carbon transition strategy.","page_number":333,"box":{"x":150,"y":405,"width":395,"height":12}},{"id":"1c6ea7b2-ce6c-46ba-8377-0d3d7f3b5d5b","block_type":"box","text":"• The company is monitoring its most significant scope 3 emissions and disclosing these where it is","page_number":333,"box":{"x":125,"y":428,"width":754,"height":12}},{"id":"193387c4-5193-4709-84c1-5e8d50a441fc","block_type":"box","text":"confident in the data. Given forthcoming regulatory requirements in certain jurisdictions, some","page_number":333,"box":{"x":150,"y":444,"width":700,"height":12}},{"id":"338a4984-86ae-40cc-94af-f72339043e18","block_type":"box","text":"companies are voluntarily disclosing scope 3 emissions reductions targets and plans, setting out","page_number":333,"box":{"x":150,"y":459,"width":720,"height":12}},{"id":"8a961be0-bdd5-4139-8b06-1b1c5cbde864","block_type":"box","text":"how they are working on decarbonization with the different constituents in their value chain.","page_number":333,"box":{"x":150,"y":475,"width":682,"height":12}},{"id":"b116d841-dc30-4b8e-9123-9de0a3f13067","block_type":"box","text":"21","page_number":333,"box":{"x":833,"y":475,"width":10,"height":6}},{"id":"c8328bee-65fa-4969-8310-72c768c94a7c","block_type":"box","text":"• The company’s governance and oversight processes for managing material risks associated with","page_number":333,"box":{"x":125,"y":498,"width":749,"height":12}},{"id":"4ea00c75-139a-495c-bae0-5ff54563611c","block_type":"box","text":"corporate political activities including applicable policies and procedures where relevant.","page_number":333,"box":{"x":150,"y":514,"width":652,"height":11}},{"id":"8ac511b5-4a71-433e-b7da-8f95d47a58a3","block_type":"box","text":"22","page_number":333,"box":{"x":804,"y":513,"width":11,"height":7}},{"id":"f3e0d1e2-ebb6-4783-9a20-bb38dd107c5e","block_type":"box","text":"The","page_number":333,"box":{"x":816,"y":514,"width":38,"height":9}},{"id":"f10b9490-a19f-4860-af8f-67ad7ef429eb","block_type":"box","text":"dedicated team looks for public policy engagement to be consistent with a company’s stated","page_number":333,"box":{"x":150,"y":529,"width":689,"height":12}},{"id":"612e2347-1a39-4a42-8e8c-e46ae1f8b824","block_type":"box","text":"strategic policy objectives, including those related to the low-carbon transition.","page_number":333,"box":{"x":150,"y":545,"width":584,"height":11}},{"id":"f4d1f3b3-786d-477c-9e90-0a1e0324b855","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":333,"box":{"x":118,"y":576,"width":463,"height":11}},{"id":"a1a8bedd-3e1a-4b22-9ac0-b544733a9f9e","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors","page_number":333,"box":{"x":117,"y":606,"width":726,"height":12}},{"id":"45c73b07-10ba-4d25-b2f0-120203706ae5","block_type":"box","text":"standing for election where, in its assessment based on company disclosures and engagement, a","page_number":333,"box":{"x":116,"y":622,"width":729,"height":12}},{"id":"af14ace9-a8fd-41c4-b41d-a2a0c6244f0f","block_type":"box","text":"company is executing on its commitment to align with the transition to a low-carbon economy, as","page_number":333,"box":{"x":116,"y":638,"width":722,"height":11}},{"id":"7e0f1b9f-b6da-4390-8a78-21a9fef5290e","block_type":"box","text":"defined above. Where the dedicated team determines this is not the case, it may vote against the","page_number":333,"box":{"x":116,"y":653,"width":727,"height":12}},{"id":"bb78fb8e-51e5-4f93-beb1-441bdab8c009","block_type":"box","text":"election of one or more directors who the team identifies as having the most responsibility for the issue.","page_number":333,"box":{"x":116,"y":668,"width":766,"height":12}},{"id":"d1cde187-e311-446c-ad99-d06d6c6ed95b","block_type":"box","text":"The directors most likely to be in focus are the chair of the board committee with low-carbon transition,","page_number":333,"box":{"x":116,"y":684,"width":759,"height":12}},{"id":"5aef6ce5-0ab8-4dd7-9aeb-1b83319d7a62","block_type":"box","text":"climate or sustainability risk oversight responsibilities, other members of the relevant committee, the","page_number":333,"box":{"x":116,"y":699,"width":741,"height":13}},{"id":"68c5d81c-5e8c-4461-bdfa-208f9f07b83c","block_type":"box","text":"lead independent director or the non-executive chair of the board. In certain markets, the team may","page_number":333,"box":{"x":117,"y":715,"width":736,"height":12}},{"id":"8c0faf37-dc3a-4211-a9aa-3e535d9bea00","block_type":"box","text":"withhold support for the discharge of the supervisory board or equivalent and/or board reports.","page_number":333,"box":{"x":116,"y":730,"width":699,"height":13}},{"id":"5402a01c-bfd9-4e35-acbe-b5b26ff5ac15","block_type":"box","text":"23","page_number":333,"box":{"x":817,"y":731,"width":11,"height":6}},{"id":"1bd8fea9-303d-43de-976d-d1268fd5062e","block_type":"box","text":"21","page_number":333,"box":{"x":143,"y":758,"width":8,"height":5}},{"id":"7f1c188c-858c-43a8-861f-dd2712487ba3","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":333,"box":{"x":171,"y":758,"width":685,"height":10}},{"id":"e78b3056-8206-4fee-9851-6eb806edceec","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":333,"box":{"x":170,"y":771,"width":692,"height":10}},{"id":"4b553565-7203-48c5-8ba4-4828ba6b5844","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":333,"box":{"x":170,"y":784,"width":679,"height":10}},{"id":"44a4157b-be67-488b-ab92-63455f5ce74e","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, that offer","page_number":333,"box":{"x":170,"y":797,"width":706,"height":10}},{"id":"381f19ec-9e5c-4c6a-9db2-ff2787da26ac","block_type":"box","text":"the most significant GHG reduction opportunities and are most relevant to the company’s business goals.” Website","page_number":333,"box":{"x":170,"y":810,"width":681,"height":9}},{"id":"b53f2346-123e-4607-817b-e8e576f77d01","block_type":"box","text":"accessed in December 2025.","page_number":333,"box":{"x":170,"y":823,"width":173,"height":7}},{"id":"2fa7b968-cc54-4ace-9bb5-949c29c422df","block_type":"box","text":"22","page_number":333,"box":{"x":143,"y":838,"width":9,"height":5}},{"id":"a7b24241-65f2-4387-9c16-c8fc24c1383f","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including trade","page_number":333,"box":{"x":170,"y":838,"width":694,"height":10}},{"id":"e68703c0-582e-40c6-95a2-94c6ba0ec460","block_type":"box","text":"association memberships), and corporate political contributions.","page_number":333,"box":{"x":170,"y":851,"width":378,"height":10}},{"id":"aee4a286-3f2e-4d31-8c07-9e21b9435703","block_type":"box","text":"23","page_number":333,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"903a8c8e-9808-4d58-9e3b-8ead77c1ef26","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":333,"box":{"x":171,"y":867,"width":661,"height":9}},{"id":"264cfe31-f674-4ade-bb2d-1c0783fb5606","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":333,"box":{"x":170,"y":880,"width":643,"height":9}},{"id":"586d8cd9-4502-4c5b-86b2-f91735feb86d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":333,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"ba65974d-4b8e-497c-b965-a584bc773afc","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":333,"box":{"x":490,"y":909,"width":375,"height":11}},{"id":"3af792dd-2755-4c78-906c-c2b231305ad5","block_type":"box","text":"8","page_number":333,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"64eb63ab-4a49-49f6-bd3c-3141114b836b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":333,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d2d0d485-d745-4a3e-9c31-e8b125b0dc69","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year,","page_number":334,"box":{"x":116,"y":87,"width":754,"height":12}},{"id":"67e8d29a-f542-4fa8-8582-e93b7edf790b","block_type":"box","text":"and the company has not subsequently made progress towards aligning with the transition to a","page_number":334,"box":{"x":116,"y":103,"width":709,"height":12}},{"id":"f4d806f3-4e89-4f2e-aff9-160bb15e38c6","block_type":"box","text":"low-carbon economy, the team may escalate by not supporting the re-election of additional responsible","page_number":334,"box":{"x":117,"y":118,"width":769,"height":12}},{"id":"3c1a12f9-21db-422a-9103-d65dd653aae0","block_type":"box","text":"directors.","page_number":334,"box":{"x":116,"y":134,"width":67,"height":9}},{"id":"2ccb6544-8602-4c64-ace6-a0b4153c076f","block_type":"box","text":"24","page_number":334,"box":{"x":185,"y":134,"width":12,"height":6}},{"id":"169ba4f2-bbaa-42b8-9d04-711e9f60b5b1","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":334,"box":{"x":117,"y":165,"width":581,"height":12}},{"id":"e1430db8-8d67-4f78-bf44-efdc6881b96d","block_type":"box","text":"In certain markets, company management may submit proposals – commonly referred to as “Say on","page_number":334,"box":{"x":117,"y":196,"width":749,"height":12}},{"id":"845b78b3-ac75-4473-9c03-7d1c417d5123","block_type":"box","text":"Climate” – seeking shareholder approval of their climate action plans or progress reports. The","page_number":334,"box":{"x":117,"y":211,"width":700,"height":12}},{"id":"c615f0b9-96f2-4c12-be40-0601268296de","block_type":"box","text":"Guidelines consider these proposals as a valuable governance mechanism that can enhance","page_number":334,"box":{"x":117,"y":227,"width":696,"height":12}},{"id":"efab252e-4779-46d9-91da-530e155c7438","block_type":"box","text":"transparency, accountability, and investors’ understanding of a company’s climate strategy. The","page_number":334,"box":{"x":116,"y":242,"width":716,"height":12}},{"id":"5fd1797d-a2f0-4dfb-8457-3b5e4b564cd1","block_type":"box","text":"dedicated team generally supports management’s climate strategy proposal if, in the team’s","page_number":334,"box":{"x":116,"y":258,"width":687,"height":12}},{"id":"761a4fe6-5840-49f8-837f-4b73917d5059","block_type":"box","text":"assessment based on these Guidelines, the strategy is aligned with the low-carbon transition. Similarly,","page_number":334,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"0cb0095a-89e9-4ea3-8287-6762189361af","block_type":"box","text":"the dedicated team generally supports management’s proposal on a progress report if the company","page_number":334,"box":{"x":116,"y":289,"width":745,"height":12}},{"id":"81eee925-440b-42cb-ae71-79c85f57a3d2","block_type":"box","text":"has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":334,"box":{"x":117,"y":304,"width":770,"height":12}},{"id":"b683f038-5a12-4ff1-ab65-39634dd2a5a5","block_type":"box","text":"transition plan and targets.","page_number":334,"box":{"x":116,"y":320,"width":203,"height":12}},{"id":"e87aaeb2-4a63-4531-a122-eb648ffa46da","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":334,"box":{"x":116,"y":351,"width":552,"height":11}},{"id":"f8052fac-183a-4f9e-b682-5ffc566d6bf2","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":334,"box":{"x":117,"y":382,"width":717,"height":12}},{"id":"589d1554-1ef9-42fe-9077-232398e3d337","block_type":"box","text":"meeting, as long as certain requirements are met. 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When the dedicated team votes in support of a","page_number":334,"box":{"x":116,"y":459,"width":748,"height":12}},{"id":"af1c6dc9-6312-47ab-a1b2-468d451ebada","block_type":"box","text":"proposal, it is not necessarily endorsing every element of the proposal or the reasoning, objectives, or","page_number":334,"box":{"x":117,"y":475,"width":759,"height":12}},{"id":"de56b744-33ba-4998-a91e-8073261f974a","block_type":"box","text":"supporting statement of the proponent.","page_number":334,"box":{"x":116,"y":490,"width":294,"height":12}},{"id":"ab5c5db3-64d2-41b7-a0ac-cb9c9ed1d309","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s","page_number":334,"box":{"x":117,"y":521,"width":752,"height":12}},{"id":"b5b921f4-5cea-40bc-8118-4c5fc70d5491","block_type":"box","text":"low-carbon transition strategy and targets. The dedicated team assesses the implications for, and the","page_number":334,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"3a143236-c542-4559-a933-9fd2ab96c048","block_type":"box","text":"relevance to, the company’s stated low-carbon transition strategy and targets. 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Some companies, in light of their long-term","page_number":335,"box":{"x":117,"y":250,"width":703,"height":12}},{"id":"103c729e-341f-45b7-8fc5-858939a8dd53","block_type":"box","text":"strategy, may decide to include relevant GHG emissions reduction targets or low-carbon transition","page_number":335,"box":{"x":116,"y":265,"width":734,"height":12}},{"id":"70c9c060-8a54-4e5d-a6a9-cdc767ba3f78","block_type":"box","text":"related metrics in their incentive plans. In such cases, the dedicated team would engage to understand","page_number":335,"box":{"x":117,"y":281,"width":767,"height":12}},{"id":"a2e595d0-a6e6-456d-89fa-18c71d0a9da8","block_type":"box","text":"the alignment between those metrics and the company’s stated climate strategy. Clear disclosure also","page_number":335,"box":{"x":116,"y":296,"width":763,"height":12}},{"id":"fc0714f2-ca28-4874-b491-0d41fa4c6bc3","block_type":"box","text":"helps investors assess whether pay structures are consistent with long-term climate strategy and risk","page_number":335,"box":{"x":117,"y":312,"width":754,"height":12}},{"id":"ab825b1c-a912-493d-9d54-b59fcaf2b279","block_type":"box","text":"management.","page_number":335,"box":{"x":117,"y":328,"width":106,"height":11}},{"id":"806f22a6-7900-4fd4-a725-dc47b4fc61d7","block_type":"box","text":"Auditors and audit-related issues","page_number":335,"box":{"x":116,"y":366,"width":271,"height":10}},{"id":"3002fe4c-e5c0-494c-906d-113285d500ee","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the","page_number":335,"box":{"x":117,"y":397,"width":742,"height":12}},{"id":"c3349137-4ec5-4bd3-97dd-43cefe62b320","block_type":"box","text":"dedicated team is interested in understanding whether the company considers and, if relevant,","page_number":335,"box":{"x":116,"y":413,"width":706,"height":12}},{"id":"fb36d177-aeea-4b23-86f9-a5dc08e8b1b9","block_type":"box","text":"quantifies, and accounts for material climate-related risks in its financial statements, including if the","page_number":335,"box":{"x":116,"y":428,"width":739,"height":12}},{"id":"5df7ea40-f3a0-4059-b9c2-231b8ae210f6","block_type":"box","text":"company explains such risks within the context of its audit report. 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The dedicated team does not promote changes in corporate","page_number":335,"box":{"x":116,"y":576,"width":723,"height":11}},{"id":"cf3fe4b8-60f9-4fcd-9b1c-0c3446a45b0f","block_type":"box","text":"control or engage in shareholder activism.","page_number":335,"box":{"x":116,"y":591,"width":317,"height":12}},{"id":"91f818c1-fb15-4ea0-9d0f-1423efd3e2ef","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":335,"box":{"x":116,"y":630,"width":560,"height":12}},{"id":"8971db65-7fb7-4dc0-9b77-c05f88a6387f","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other","page_number":335,"box":{"x":117,"y":661,"width":730,"height":12}},{"id":"679404c1-cfc8-4204-848c-5fa945e24643","block_type":"box","text":"material sustainability-related risks and opportunities that may be relevant to a company’s business","page_number":335,"box":{"x":117,"y":676,"width":735,"height":12}},{"id":"9e293529-7258-41d4-b6b6-b5eb998e79cd","block_type":"box","text":"model and long-term financial performance. 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Sometimes the concept is understood to include the","page_number":336,"box":{"x":116,"y":355,"width":717,"height":12}},{"id":"e1c2718f-741c-48d5-8777-c643f14e9ded","block_type":"box","text":"reduction and elimination of other GHG, e.g., methane.","page_number":336,"box":{"x":117,"y":370,"width":412,"height":12}},{"id":"858e3d7b-bdf6-4de0-bc39-035bc5513887","block_type":"box","text":"Climate-related risks and opportunities","page_number":336,"box":{"x":116,"y":399,"width":312,"height":12}},{"id":"29f19e37-7620-47de-916d-609d97f03946","block_type":"box","text":": The investment opportunities and risks associated with the","page_number":336,"box":{"x":430,"y":399,"width":448,"height":12}},{"id":"46888606-df58-4d25-9ec2-f297543d5f37","block_type":"box","text":"transition to a low-carbon economy, including transition risks and opportunities and physical risks and","page_number":336,"box":{"x":116,"y":415,"width":757,"height":12}},{"id":"4269e3c9-809f-4b10-8d4b-1609a5c59965","block_type":"box","text":"opportunities in adapting to physical climate change.","page_number":336,"box":{"x":116,"y":430,"width":394,"height":12}},{"id":"98fb0000-b1a4-4ed9-b42f-7350f41b6f5a","block_type":"box","text":"Climate-related transition plan","page_number":336,"box":{"x":116,"y":459,"width":241,"height":12}},{"id":"fc31bc6d-11fa-420e-ba8c-3d6e047be6f8","block_type":"box","text":": “An aspect of an entity’s overall strategy that lays out the entity’s","page_number":336,"box":{"x":360,"y":459,"width":492,"height":12}},{"id":"9416da13-4ae2-4fef-9463-92173db5dd34","block_type":"box","text":"targets, actions or resources for its transition towards a lower-carbon economy, including actions such","page_number":336,"box":{"x":116,"y":474,"width":762,"height":12}},{"id":"c5b8484b-d94c-4a2a-93f8-b3ef2b81f1d2","block_type":"box","text":"as reducing its greenhouse gas emissions.”","page_number":336,"box":{"x":116,"y":490,"width":323,"height":12}},{"id":"0c40b295-a5a3-4566-963e-6cf004ee72e6","block_type":"box","text":"27","page_number":336,"box":{"x":440,"y":490,"width":11,"height":6}},{"id":"e81be6fb-51a8-49fd-aa3e-e8ec662f63c1","block_type":"box","text":"Science-based GHG emissions reduction targets","page_number":336,"box":{"x":116,"y":519,"width":389,"height":12}},{"id":"4b03906e-ece7-43b3-b727-098004244f78","block_type":"box","text":": Targets that “…are in line with what the latest","page_number":336,"box":{"x":507,"y":519,"width":351,"height":12}},{"id":"ad5eca31-ffec-4662-ad9a-d3a6ea404a1b","block_type":"box","text":"climate science deems necessary to meet the goals of the Paris Agreement – limiting global warming","page_number":336,"box":{"x":116,"y":534,"width":756,"height":12}},{"id":"cc5831a1-9e8f-44d7-9c92-4874efc0a253","block_type":"box","text":"to 1.5°C above pre-industrial levels. Science-based targets give companies a clearly defined path to","page_number":336,"box":{"x":116,"y":550,"width":747,"height":12}},{"id":"1cee0705-bbbe-4ee1-8653-c26f52333e8c","block_type":"box","text":"reduce GHG emissions in line with limiting global warming to 1.5°C. They define how much and how","page_number":336,"box":{"x":117,"y":565,"width":748,"height":12}},{"id":"7760cb7b-4486-4566-a292-121484e9ce02","block_type":"box","text":"quickly a business must reduce its emissions to be in line with the Paris Agreement goals.”","page_number":336,"box":{"x":116,"y":581,"width":673,"height":12}},{"id":"95882346-f293-4a3a-992b-51df5080d312","block_type":"box","text":"28","page_number":336,"box":{"x":790,"y":581,"width":11,"height":6}},{"id":"a791719b-3c5c-4fdb-ad78-0c6e72dfff2b","block_type":"box","text":"Scope 1:","page_number":336,"box":{"x":116,"y":609,"width":68,"height":12}},{"id":"10b5dd09-367d-4768-9eaf-32709c538b0c","block_type":"box","text":"Direct GHG emissions.","page_number":336,"box":{"x":186,"y":609,"width":174,"height":10}},{"id":"d6510412-d9af-40f0-b149-8afb827e7bce","block_type":"box","text":"Direct GHG emissions occur from sources that are owned or","page_number":336,"box":{"x":368,"y":609,"width":453,"height":10}},{"id":"9262870d-0d50-4359-9fde-dc04ccc54275","block_type":"box","text":"controlled by the company, for example, emissions from combustion in owned or controlled boilers,","page_number":336,"box":{"x":116,"y":625,"width":740,"height":12}},{"id":"c90df5cc-3812-49fc-8ffa-6d6d4eca8fd9","block_type":"box","text":"furnaces, vehicles, etc.; emissions from chemical production in owned or controlled process","page_number":336,"box":{"x":116,"y":640,"width":686,"height":12}},{"id":"45b8f2f9-f169-4da8-bf3d-20173c94b12c","block_type":"box","text":"equipment.","page_number":336,"box":{"x":116,"y":656,"width":81,"height":12}},{"id":"ed0d1541-4769-4cc6-927a-47604d3e958b","block_type":"box","text":"29","page_number":336,"box":{"x":199,"y":656,"width":12,"height":6}},{"id":"afadb7f9-307a-4dbe-9465-276bbf4f89b1","block_type":"box","text":"Scope 2:","page_number":336,"box":{"x":116,"y":685,"width":68,"height":11}},{"id":"799c19c3-57bc-4760-a9d3-207e9fcfe45d","block_type":"box","text":"Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation","page_number":336,"box":{"x":192,"y":685,"width":687,"height":12}},{"id":"7ec597e2-8978-4b62-bf29-99ca5b8ac706","block_type":"box","text":"of purchased electricity [steam, and heating/cooling] consumed by the company. 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We develop standards,","page_number":336,"box":{"x":170,"y":810,"width":702,"height":10}},{"id":"122e48b5-238c-4d34-8438-3f960d50d10e","block_type":"box","text":"tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in line with what","page_number":336,"box":{"x":170,"y":823,"width":707,"height":10}},{"id":"bb240d2b-7259-47fe-bdcb-66ba2a1b50e3","block_type":"box","text":"is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.” Source: Science","page_number":336,"box":{"x":170,"y":836,"width":675,"height":10}},{"id":"4f8f10f4-f49a-4e09-9397-7d8ad437981b","block_type":"box","text":"Based Targets initiative, “About Us.” Websites accessed in December 2025.","page_number":336,"box":{"x":171,"y":849,"width":450,"height":10}},{"id":"07c44a0d-c98f-4a91-b821-bdd28fc7cdb8","block_type":"box","text":"29","page_number":336,"box":{"x":143,"y":864,"width":9,"height":5}},{"id":"912a3944-a368-4de9-8dfe-8bca3f7b6bc3","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":336,"box":{"x":170,"y":864,"width":565,"height":10}},{"id":"84e19319-d06a-4cf3-9938-1132e8a645ba","block_type":"box","text":"30","page_number":336,"box":{"x":143,"y":879,"width":9,"height":5}},{"id":"66d39d0f-7ca1-41c9-a98b-75e7e299da4e","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":336,"box":{"x":170,"y":879,"width":565,"height":10}},{"id":"64b1e55f-12fe-436b-bccb-2d6e3b189e34","block_type":"box","text":"BlackRock Investment Stewardship","page_number":336,"box":{"x":117,"y":909,"width":262,"height":11}},{"id":"4e59cb3f-5c7d-4a9d-8930-d4c4191649ae","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines |","page_number":336,"box":{"x":481,"y":909,"width":375,"height":11}},{"id":"ed855e48-8185-4533-9900-43e97b5cbc7f","block_type":"box","text":"11","page_number":336,"box":{"x":867,"y":909,"width":14,"height":9}},{"id":"006ab852-6f25-4b3a-b2b7-66330d90ac7b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":336,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"46755547-b548-475e-a056-abf26edf88ff","block_type":"box","text":"Scope 3:","page_number":337,"box":{"x":116,"y":87,"width":74,"height":12}},{"id":"6443089e-6e00-4f89-899e-869320eba77f","block_type":"box","text":"Other indirect GHG emissions. 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All other trademarks are those of their respective","page_number":339,"box":{"x":116,"y":828,"width":731,"height":12}},{"id":"e1a23c2b-f27c-4fe5-84b4-4efcd2b3433d","block_type":"box","text":"owners.","page_number":339,"box":{"x":116,"y":847,"width":63,"height":7}},{"id":"829e09d9-8744-4e82-9fd5-a5754aa43a40","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":339,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a6899667-e4e6-4b26-996d-12b1127fd6c5","block_type":"box","text":"PART II","page_number":340,"box":{"x":432,"y":92,"width":149,"height":22}},{"id":"095de7a8-8e05-46ef-9041-7d88b3b49dda","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be","page_number":340,"box":{"x":116,"y":143,"width":734,"height":12}},{"id":"c84297fa-4f29-4538-b71e-e1394792b5b8","block_type":"box","text":"referred to as a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to","page_number":340,"box":{"x":117,"y":158,"width":770,"height":13}},{"id":"d7ba04d0-cbce-42d0-aa42-7c5ee415955c","block_type":"box","text":"as “Municipal Funds” if they invest certain of their assets in municipal investments described below.","page_number":340,"box":{"x":116,"y":174,"width":743,"height":12}},{"id":"9d5ecf96-7103-4ef8-828c-6baf267d1993","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a","page_number":340,"box":{"x":117,"y":205,"width":704,"height":11}},{"id":"5706e800-420a-4994-ad7a-77cc3732d411","block_type":"box","text":"Delaware statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation,","page_number":340,"box":{"x":117,"y":220,"width":769,"height":12}},{"id":"a6af59e9-bb99-47f0-b7eb-5f3935463dc0","block_type":"box","text":"shares of common stock and shares of beneficial interest are referred to herein as “shares” or","page_number":340,"box":{"x":116,"y":235,"width":701,"height":10}},{"id":"a74de750-b48a-4065-b0f9-80f98fc7b0ab","block_type":"box","text":"“Common Stock,” holders of shares of Common Stock are referred to as “shareholders,” the trustees","page_number":340,"box":{"x":116,"y":251,"width":752,"height":11}},{"id":"06576046-06a2-4123-9774-be2ac0a6bef3","block_type":"box","text":"or directors of each Fund are referred to as “Directors,” the boards of trustees/directors of each Fund","page_number":340,"box":{"x":116,"y":266,"width":754,"height":12}},{"id":"c762ec03-3591-47b0-8d07-a2d1ff018ba0","block_type":"box","text":"are referred to as the “Board of Directors” or the “Board,” BlackRock Advisors, LLC, BlackRock Fund","page_number":340,"box":{"x":116,"y":282,"width":752,"height":11}},{"id":"b6a70c0a-469d-4835-bd29-7df43a4f4576","block_type":"box","text":"Advisors or their respective affiliates is the investment adviser or manager of each Fund and is referred","page_number":340,"box":{"x":116,"y":297,"width":771,"height":12}},{"id":"222b2da3-4deb-4dcf-83a5-098e5c2d7d44","block_type":"box","text":"to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or management","page_number":340,"box":{"x":116,"y":313,"width":745,"height":12}},{"id":"192d312a-6e54-48bf-a58a-91801fd38f6e","block_type":"box","text":"agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":340,"box":{"x":116,"y":328,"width":722,"height":13}},{"id":"c9c844a2-e836-4950-b256-3a36255479a6","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as","page_number":340,"box":{"x":116,"y":344,"width":765,"height":12}},{"id":"2f1ce873-6a07-42a5-b2f6-6f1958ffe2a5","block_type":"box","text":"its “charter.” The Investment Company Act of 1940, as amended, is referred to herein as the","page_number":340,"box":{"x":117,"y":359,"width":689,"height":13}},{"id":"9d0aa16f-63a5-48a5-9e9d-bcf0830237fe","block_type":"box","text":"“Investment Company Act.” The Securities Act of 1933, as amended, is referred to herein as the","page_number":340,"box":{"x":116,"y":375,"width":719,"height":12}},{"id":"b7758bb6-6d9c-4769-acfe-c7d3551b2afd","block_type":"box","text":"“Securities Act.” The Securities and Exchange Commission is referred to herein as the “Commission”","page_number":340,"box":{"x":116,"y":390,"width":755,"height":13}},{"id":"3bc8f6a5-5ee7-401f-aefc-5c069e58ab3f","block_type":"box","text":"or the “SEC.”","page_number":340,"box":{"x":116,"y":406,"width":103,"height":9}},{"id":"1690aac0-847d-49b2-9e42-57c53535b87f","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":340,"box":{"x":117,"y":436,"width":765,"height":12}},{"id":"4653d31b-7989-414d-a53c-e02ed626fe12","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each,","page_number":340,"box":{"x":116,"y":452,"width":770,"height":12}},{"id":"6a8ba2a9-6a90-4486-be43-afa04b71026f","block_type":"box","text":"a “Master LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All","page_number":340,"box":{"x":116,"y":467,"width":734,"height":12}},{"id":"e1084c3c-2ecb-4fe9-ad6a-83fbb0b8fd7c","block_type":"box","text":"investments are generally made at the level of the Master Portfolio. This structure is sometimes called","page_number":340,"box":{"x":117,"y":483,"width":761,"height":12}},{"id":"ce99c090-1fdb-489f-822e-eabeb93fcde6","block_type":"box","text":"a “master/feeder” structure. A Feeder Fund’s investment results will correspond directly to the","page_number":340,"box":{"x":116,"y":498,"width":700,"height":12}},{"id":"67474889-b443-46e3-81b8-201cbdfa1037","block_type":"box","text":"investment results of the underlying Master Portfolio in which it invests. For simplicity, this SAI uses the","page_number":340,"box":{"x":117,"y":514,"width":770,"height":12}},{"id":"90640e9b-dcf3-4b22-8b31-cc50c81aa25b","block_type":"box","text":"term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":340,"box":{"x":116,"y":529,"width":503,"height":10}},{"id":"e630835d-82fd-4c12-9aa1-b62531421533","block_type":"box","text":"Certain information contained herein may not be relevant to a particular Fund.","page_number":340,"box":{"x":117,"y":560,"width":582,"height":12}},{"id":"a9a614a6-cf5b-4f28-a56e-920c7bce2b9b","block_type":"box","text":"Investment Risks and Considerations","page_number":340,"box":{"x":119,"y":610,"width":675,"height":23}},{"id":"c0f0ae24-a2ea-466a-b2b5-fd0aa38160ba","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one","page_number":340,"box":{"x":116,"y":661,"width":767,"height":12}},{"id":"e296cd60-b490-4ba6-bdc8-e921f7915826","block_type":"box","text":"or more of the Funds may use, and the risks and considerations associated with those investments","page_number":340,"box":{"x":116,"y":677,"width":735,"height":12}},{"id":"0d5d5c9f-587d-461f-b40e-7ddb6ce0e073","block_type":"box","text":"and investment strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the","page_number":340,"box":{"x":116,"y":692,"width":685,"height":12}},{"id":"ab400033-f5ae-451b-aa47-a5e4f43d8bb7","block_type":"box","text":"“Investment Objective and Policies,” “Investment Objectives and Policies” or “Investment Strategies","page_number":340,"box":{"x":116,"y":708,"width":737,"height":12}},{"id":"2c36651f-7f89-4588-b1bb-c1edf99f94d6","block_type":"box","text":"and Risks of the Fund” section, as applicable, of Part I of this SAI for further information on each","page_number":340,"box":{"x":116,"y":723,"width":714,"height":12}},{"id":"0d478dc0-dc9b-4ae9-a525-b66498df3de9","block_type":"box","text":"Fund’s investment policies and risks. Information contained in this section about the risks and","page_number":340,"box":{"x":117,"y":739,"width":692,"height":12}},{"id":"df857e73-949d-45a8-888c-a3b7533d3079","block_type":"box","text":"considerations associated with a Fund’s investments and/or investment strategies applies only to those","page_number":340,"box":{"x":116,"y":754,"width":765,"height":12}},{"id":"603d5051-e2ad-40e5-a992-5e8197071e30","block_type":"box","text":"Funds specifically identified in Part I of this SAI as making each type of investment or using each","page_number":340,"box":{"x":117,"y":770,"width":716,"height":12}},{"id":"fcc5dc9b-5734-41a8-a31f-f4c3361ec011","block_type":"box","text":"investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does","page_number":340,"box":{"x":117,"y":785,"width":764,"height":12}},{"id":"a439405f-b0d7-4a56-85a5-6d7b485a9f99","block_type":"box","text":"not form a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered","page_number":340,"box":{"x":117,"y":801,"width":735,"height":12}},{"id":"63c07dd4-1623-44f1-ae52-85f80708a4bd","block_type":"box","text":"Fund. Only information that is clearly identified as applicable to a Covered Fund is considered to form a","page_number":340,"box":{"x":117,"y":816,"width":765,"height":12}},{"id":"fc0503f2-5680-4262-b274-aa97ba182587","block_type":"box","text":"part of that Covered Fund’s SAI.","page_number":340,"box":{"x":117,"y":832,"width":244,"height":12}},{"id":"9028d56e-e268-434f-a96c-ff660c243970","block_type":"box","text":"Asset-Backed Securities.","page_number":340,"box":{"x":116,"y":862,"width":200,"height":10}},{"id":"710d2577-5402-4444-b404-02d3cc75a340","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans,","page_number":340,"box":{"x":317,"y":862,"width":519,"height":12}},{"id":"7ae0f8b3-9a4b-4cbb-b13b-c1ce7400d997","block_type":"box","text":"installment sale contracts, credit card receivables or other assets. Asset-backed securities are","page_number":340,"box":{"x":117,"y":878,"width":702,"height":11}},{"id":"185d783f-2007-4ff3-874b-2192819e8bed","block_type":"box","text":"II-1","page_number":340,"box":{"x":489,"y":909,"width":20,"height":9}},{"id":"490f1af7-bcad-4d28-b4b4-7730a7d9cc25","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":340,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"661c531e-a7b1-427c-a80e-57a6efa6bfb4","block_type":"box","text":"“pass-through” securities, meaning that principal and interest payments — net of expenses — made by","page_number":341,"box":{"x":116,"y":87,"width":770,"height":12}},{"id":"110ddec3-de5d-4905-8c0e-93a9f380e798","block_type":"box","text":"the borrower on the underlying assets (such as credit card receivables) are passed through to a Fund.","page_number":341,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"b6101885-39d2-4f45-b368-f6cc785cbc65","block_type":"box","text":"The value of asset-backed securities, like that of traditional fixed-income securities, typically increases","page_number":341,"box":{"x":116,"y":118,"width":763,"height":12}},{"id":"9708888f-2a8b-48e3-bd9d-1f1c3526b9e5","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, asset-backed securities differ","page_number":341,"box":{"x":116,"y":134,"width":770,"height":11}},{"id":"d339ed54-5053-49a3-bd03-ca7d1a65c8f3","block_type":"box","text":"from traditional fixed-income securities because of their potential for prepayment. The price paid by a","page_number":341,"box":{"x":116,"y":149,"width":755,"height":12}},{"id":"e3c0541e-c312-408b-9862-68c8f12f8dc5","block_type":"box","text":"Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and the","page_number":341,"box":{"x":117,"y":165,"width":767,"height":12}},{"id":"505d3a39-dba3-4be4-90fb-6c34d540ed14","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of","page_number":341,"box":{"x":116,"y":180,"width":709,"height":12}},{"id":"aa7329f6-fd71-43cd-b6bc-4592c8e47602","block_type":"box","text":"prepayment of the underlying assets. In a period of declining interest rates, borrowers may prepay the","page_number":341,"box":{"x":117,"y":196,"width":761,"height":12}},{"id":"b2542c3a-1152-47c9-901e-dcfdd9b90e05","block_type":"box","text":"underlying assets more quickly than anticipated, thereby reducing the yield to maturity and the average","page_number":341,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"02ca0736-880e-43c0-84de-4fcaeb928b87","block_type":"box","text":"life of the asset-backed securities. Moreover, when a Fund reinvests the proceeds of a prepayment in","page_number":341,"box":{"x":117,"y":227,"width":758,"height":12}},{"id":"0055ce19-c13d-4596-9702-d9f8c2b576e8","block_type":"box","text":"these circumstances, it will likely receive a rate of interest that is lower than the rate on the security that","page_number":341,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"b12c9a63-36a9-47c7-a350-73da12ed5037","block_type":"box","text":"was prepaid. To the extent that a Fund purchases asset-backed securities at a premium, prepayments","page_number":341,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"6c8de0d6-e446-47ed-9103-7eada6095284","block_type":"box","text":"may result in a loss to the extent of the premium paid. If a Fund buys such securities at a discount,","page_number":341,"box":{"x":117,"y":273,"width":736,"height":12}},{"id":"c1b48254-2126-48bb-9360-16e887a51a56","block_type":"box","text":"both scheduled payments and unscheduled prepayments will increase current and total returns and","page_number":341,"box":{"x":117,"y":289,"width":742,"height":12}},{"id":"7aa4c0c3-d8a0-4cde-93c0-d35162101176","block_type":"box","text":"unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":341,"box":{"x":117,"y":304,"width":738,"height":12}},{"id":"a054772a-435d-418e-a009-62deec97b004","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the","page_number":341,"box":{"x":116,"y":320,"width":772,"height":12}},{"id":"da1d38d7-3508-4355-81ce-415360caee34","block_type":"box","text":"underlying assets may occur at a slower than expected rate, creating maturity extension risk. This","page_number":341,"box":{"x":117,"y":335,"width":730,"height":12}},{"id":"9fcfbc5b-832d-43ec-bdf3-722eedff2d41","block_type":"box","text":"particular risk may effectively change a security that was considered short- or intermediate-term at the","page_number":341,"box":{"x":117,"y":351,"width":762,"height":12}},{"id":"cb495ea7-7ab8-4ea1-9055-fb2198ac96b6","block_type":"box","text":"time of purchase into a longer term security. Since the value of longer-term securities generally","page_number":341,"box":{"x":116,"y":366,"width":710,"height":12}},{"id":"60fb199b-f306-48c7-a1c0-f03f54ec9028","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than does the value of shorter-term","page_number":341,"box":{"x":116,"y":382,"width":736,"height":12}},{"id":"cfc994d9-436b-4a9a-983f-97e04929c849","block_type":"box","text":"securities, maturity extension risk could increase the volatility of the Fund. When interest rates decline,","page_number":341,"box":{"x":116,"y":397,"width":766,"height":12}},{"id":"8d64fff9-c677-42c8-a416-8e2aa141d6ce","block_type":"box","text":"the value of an asset-backed security with prepayment features may not increase as much as that of","page_number":341,"box":{"x":116,"y":413,"width":751,"height":12}},{"id":"a7d09d4c-46e1-4cc0-a00d-49bdb5354df8","block_type":"box","text":"other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate","page_number":341,"box":{"x":116,"y":428,"width":767,"height":12}},{"id":"a78cd4ba-72a5-43af-899f-7b5c2a1c3fef","block_type":"box","text":"or retard prepayments and thus affect maturities.","page_number":341,"box":{"x":116,"y":444,"width":368,"height":12}},{"id":"896b1bcf-7a1b-4d98-a2ca-4a230b65d774","block_type":"box","text":"Asset-Based Securities.","page_number":341,"box":{"x":116,"y":475,"width":190,"height":9}},{"id":"5b272fdd-7cad-4626-a662-d0b1c714329f","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the","page_number":341,"box":{"x":307,"y":475,"width":548,"height":12}},{"id":"f99a4b39-6c40-4bbb-8859-4f32d679a130","block_type":"box","text":"principal amount, redemption terms or conversion terms of which are related to the market price of","page_number":341,"box":{"x":117,"y":490,"width":734,"height":12}},{"id":"1218dd68-6fcf-4342-9e63-e40848cf66bc","block_type":"box","text":"some natural resource asset such as gold bullion. These securities are referred to as “asset-based","page_number":341,"box":{"x":116,"y":506,"width":737,"height":12}},{"id":"8e47ee2a-6837-441e-ab6a-a397110a7603","block_type":"box","text":"securities.” A Fund will purchase only asset-based securities that are rated, or are issued by issuers","page_number":341,"box":{"x":116,"y":521,"width":746,"height":12}},{"id":"b6871d39-e005-4ce1-848d-79fa0fd4ebfc","block_type":"box","text":"that have outstanding debt obligations rated, investment grade (for example, AAA, AA, A or BBB by","page_number":341,"box":{"x":116,"y":537,"width":744,"height":12}},{"id":"5f5952d6-4560-402a-aa9c-23de4c3dd1c3","block_type":"box","text":"S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by Moody’s Investors Service, Inc.","page_number":341,"box":{"x":116,"y":552,"width":719,"height":12}},{"id":"3cd1e96c-61fb-4b96-8b48-11b9b949a58b","block_type":"box","text":"(“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by issuers that the","page_number":341,"box":{"x":117,"y":568,"width":721,"height":12}},{"id":"18a48a2a-ca42-4ac9-b871-1554abc33b35","block_type":"box","text":"Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":341,"box":{"x":117,"y":583,"width":733,"height":12}},{"id":"590117fc-da7b-43c4-ab08-7efb0b29aff8","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and","page_number":341,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"eef27ab6-f5d2-4cb1-afbb-273b5bc1d8d4","block_type":"box","text":"may be more likely to be downgraded than securities rated in the three highest rating categories. If an","page_number":341,"box":{"x":117,"y":614,"width":759,"height":12}},{"id":"731b6286-fe3e-45e4-a608-e4236ae8ef6f","block_type":"box","text":"asset-based security is backed by a bank letter of credit or other similar facility, the Manager may take","page_number":341,"box":{"x":116,"y":630,"width":764,"height":12}},{"id":"c97fe3d1-44b7-462f-abcd-0027f1fe04d0","block_type":"box","text":"such backing into account in determining the creditworthiness of the issuer. While the market prices for","page_number":341,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"e76d3b23-708f-4c18-8eb9-2fa59a1a3ee1","block_type":"box","text":"an asset-based security and the related natural resource asset generally are expected to move in the","page_number":341,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"bcdb8584-4cf7-4516-828a-3d949c76fa44","block_type":"box","text":"same direction, there may not be perfect correlation in the two price movements. Asset-based","page_number":341,"box":{"x":116,"y":676,"width":696,"height":12}},{"id":"4807a96c-b99d-4211-9665-48f738331361","block_type":"box","text":"securities may not be secured by a security interest in or claim on the underlying natural resource","page_number":341,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"ac0071fa-ddc8-4ff6-99a4-49e5600eac8d","block_type":"box","text":"asset. The asset-based securities in which a Fund may invest may bear interest or pay preferred","page_number":341,"box":{"x":116,"y":707,"width":716,"height":12}},{"id":"1360d0de-3718-4ecc-8ead-56808af20289","block_type":"box","text":"dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be","page_number":341,"box":{"x":116,"y":723,"width":738,"height":12}},{"id":"c86b5f0a-90ff-4422-8174-50995739a2c0","block_type":"box","text":"payable at maturity in cash at the stated principal amount or, at the option of the holder, directly in a","page_number":341,"box":{"x":117,"y":738,"width":738,"height":12}},{"id":"3493650b-ab90-44dd-810f-9023c56127b3","block_type":"box","text":"stated amount of the asset to which it is related. In such instance, because no Fund presently intends","page_number":341,"box":{"x":116,"y":754,"width":753,"height":12}},{"id":"35f4df2e-d5d8-4156-b436-096313d1a1e0","block_type":"box","text":"to invest directly in natural resource assets, a Fund would sell the asset-based security in the","page_number":341,"box":{"x":116,"y":769,"width":691,"height":12}},{"id":"4b1f6429-71df-4ac8-968e-12fe95029340","block_type":"box","text":"secondary market, to the extent one exists, prior to maturity if the value of the stated amount of the","page_number":341,"box":{"x":116,"y":785,"width":733,"height":12}},{"id":"bfec92ac-b149-450e-9f90-474fca0f02c3","block_type":"box","text":"asset exceeds the stated principal amount and thereby realize the appreciation in the underlying asset.","page_number":341,"box":{"x":116,"y":800,"width":763,"height":12}},{"id":"88b85dc2-6116-4518-819e-38440a91c083","block_type":"box","text":"Precious Metal-Related Securities.","page_number":341,"box":{"x":116,"y":831,"width":256,"height":10}},{"id":"9575ac21-4aa5-4190-8dd7-df1084fdda97","block_type":"box","text":"A Fund may invest in the equity and other securities of companies","page_number":341,"box":{"x":374,"y":831,"width":500,"height":12}},{"id":"680af60f-5778-4ed0-a7c1-4ec543c00dba","block_type":"box","text":"that explore for, extract, process or deal in precious metals (","page_number":341,"box":{"x":116,"y":847,"width":447,"height":12}},{"id":"f4a85b14-4378-499f-bc94-ef370a2ab111","block_type":"box","text":"e.g.","page_number":341,"box":{"x":564,"y":849,"width":26,"height":10}},{"id":"db2c762b-272d-4b62-927e-4c9f30cce57e","block_type":"box","text":", gold, silver and platinum), and in","page_number":341,"box":{"x":593,"y":847,"width":255,"height":12}},{"id":"ca68f9cc-9e91-4657-8dd0-21bc6dbf4c7f","block_type":"box","text":"asset-based securities indexed to the value of such metals. Such securities may be purchased when","page_number":341,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"ed88af83-ac7e-4459-a615-f93c66a4585c","block_type":"box","text":"they are believed to be attractively priced in relation to the value of a company’s precious metal-related","page_number":341,"box":{"x":116,"y":878,"width":769,"height":12}},{"id":"70339317-fdaf-4199-a653-589e275cd38c","block_type":"box","text":"II-2","page_number":341,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"2b6e3445-c9d8-4825-b99b-a57e23c3999a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":341,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"eb7272ec-cbd5-4f25-8781-3f9c782ce85a","block_type":"box","text":"assets or when the values of precious metals are expected to benefit from inflationary pressure or","page_number":342,"box":{"x":116,"y":87,"width":731,"height":12}},{"id":"b8a93c37-82be-4166-974d-ad9fa3d19af0","block_type":"box","text":"other economic, political or financial uncertainty or instability. Based on historical experience, during","page_number":342,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"7cb7152c-01c0-4146-9106-c41327c1adcb","block_type":"box","text":"periods of economic or financial instability the securities of companies involved in precious metals may","page_number":342,"box":{"x":117,"y":118,"width":766,"height":12}},{"id":"bcd07134-1a48-4b26-b288-46ddfbdf6684","block_type":"box","text":"be subject to extreme price fluctuations, reflecting the high volatility of precious metal prices during","page_number":342,"box":{"x":117,"y":134,"width":736,"height":12}},{"id":"aee2fe9c-fadc-4197-bad1-c02effc96b0f","block_type":"box","text":"such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":342,"box":{"x":116,"y":149,"width":721,"height":12}},{"id":"3d356558-5dc6-4b06-94e2-127676ff0580","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such","page_number":342,"box":{"x":117,"y":165,"width":754,"height":12}},{"id":"5b32ddb5-6895-40be-a8db-845aefe5c604","block_type":"box","text":"companies. The major producers of gold include the Republic of South Africa, Russia, Canada, the","page_number":342,"box":{"x":116,"y":180,"width":739,"height":12}},{"id":"3615cf0d-5b21-4d09-9018-e4b73c5c920b","block_type":"box","text":"United States, Brazil and Australia. Sales of gold by Russia are largely unpredictable and often relate","page_number":342,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"a4b15a5a-3763-4be7-b7d2-ee0e20b6e2a9","block_type":"box","text":"to political and economic considerations rather than to market forces. Economic, financial, social and","page_number":342,"box":{"x":116,"y":211,"width":753,"height":12}},{"id":"c2679476-4a59-4dba-aca6-434b90f14390","block_type":"box","text":"political factors within South Africa may significantly affect South African gold production.","page_number":342,"box":{"x":117,"y":227,"width":663,"height":12}},{"id":"6e8404c9-ca82-4e45-9598-3f7bcab57eed","block_type":"box","text":"Borrowing and Leverage.","page_number":342,"box":{"x":116,"y":258,"width":201,"height":12}},{"id":"041a6f06-e4e7-4903-b1b4-b87755f876da","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or","page_number":342,"box":{"x":318,"y":258,"width":517,"height":12}},{"id":"95cc72ad-81d7-4ae5-890c-77dd40d626a1","block_type":"box","text":"emergency purposes, including to meet redemptions or to settle securities transactions. Certain Funds","page_number":342,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"f234a2e7-4500-4340-b320-b2c1733d2167","block_type":"box","text":"will not purchase securities at any time when borrowings exceed 5% of their total assets, except (a) to","page_number":342,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"646a2766-2116-45ac-9325-a68293082f40","block_type":"box","text":"honor prior commitments or (b) to exercise subscription rights when outstanding borrowings have been","page_number":342,"box":{"x":117,"y":304,"width":768,"height":12}},{"id":"1c93a063-7af7-442f-9c22-dee9b3ac6961","block_type":"box","text":"obtained exclusively for settlements of other securities transactions.","page_number":342,"box":{"x":116,"y":320,"width":508,"height":12}},{"id":"2fa9a79f-3d8e-4ea6-afbb-5a89c1926b08","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s","page_number":342,"box":{"x":117,"y":351,"width":748,"height":12}},{"id":"7b252070-5f9b-47e1-991a-13f087ac708b","block_type":"box","text":"Prospectus. The purchase of securities while borrowings are outstanding will have the effect of","page_number":342,"box":{"x":117,"y":366,"width":707,"height":12}},{"id":"e48d10a8-6115-4dc7-b704-1583aecdb2ba","block_type":"box","text":"leveraging the Fund. Such leveraging increases the Fund’s exposure to capital risk, and borrowed","page_number":342,"box":{"x":117,"y":382,"width":731,"height":12}},{"id":"9a07b897-ac8c-4460-aff4-93c7f6f22698","block_type":"box","text":"funds are subject to interest costs that will reduce net income. The use of leverage by a Fund creates","page_number":342,"box":{"x":116,"y":397,"width":757,"height":12}},{"id":"801d4e6a-7b19-4714-a867-efc4e92a083e","block_type":"box","text":"an opportunity for greater total return, but, at the same time, creates special risks. For example,","page_number":342,"box":{"x":116,"y":413,"width":714,"height":12}},{"id":"3e12d7d9-f536-4e52-ac39-96ad8224bf01","block_type":"box","text":"leveraging may exaggerate changes in the net asset value (“NAV”) of Fund shares and in the yield on","page_number":342,"box":{"x":117,"y":428,"width":758,"height":12}},{"id":"16c46698-6804-4c67-9b87-e5c27d1cf519","block_type":"box","text":"the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s assets may","page_number":342,"box":{"x":116,"y":444,"width":734,"height":12}},{"id":"79083a8f-3ed3-4ce3-a0c1-5884106e7b72","block_type":"box","text":"change in value during the time the borrowings are outstanding. Borrowings will create interest","page_number":342,"box":{"x":116,"y":459,"width":707,"height":12}},{"id":"0f871715-a33e-4b40-80e8-235ec901f879","block_type":"box","text":"expenses for the Fund that can exceed the income from the assets purchased with the borrowings. To","page_number":342,"box":{"x":116,"y":475,"width":764,"height":12}},{"id":"9e7de126-525e-4ea0-8ab1-ba8a6b6d238b","block_type":"box","text":"the extent the income or capital appreciation derived from securities purchased with borrowed funds","page_number":342,"box":{"x":116,"y":490,"width":747,"height":12}},{"id":"24a191a4-1322-40dc-9ca4-088be87526ab","block_type":"box","text":"exceeds the interest the Fund will have to pay on the borrowings, the Fund’s return will be greater than","page_number":342,"box":{"x":116,"y":506,"width":768,"height":12}},{"id":"3cc053c6-2709-48c4-9d17-44df4e2a93b9","block_type":"box","text":"if leverage had not been used. Conversely, if the income or capital appreciation from the securities","page_number":342,"box":{"x":117,"y":521,"width":735,"height":12}},{"id":"7f63aeec-76a1-4254-a442-ffb456bb98f5","block_type":"box","text":"purchased with such borrowed funds is not sufficient to cover the cost of borrowing, the return to the","page_number":342,"box":{"x":117,"y":537,"width":748,"height":12}},{"id":"fecc6409-c053-40c4-a51e-e760d510444a","block_type":"box","text":"Fund will be less than if leverage had not been used and, therefore, the amount available for","page_number":342,"box":{"x":117,"y":552,"width":690,"height":12}},{"id":"9c3a9a23-4ee2-49d4-b659-d0f7f4682453","block_type":"box","text":"distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best","page_number":342,"box":{"x":116,"y":568,"width":735,"height":12}},{"id":"2382a6c3-86f0-4b9e-a393-6c109e051853","block_type":"box","text":"judgment nevertheless may determine to maintain the Fund’s leveraged position if it expects that the","page_number":342,"box":{"x":115,"y":583,"width":752,"height":12}},{"id":"c7a86d34-ff2b-4407-b56c-ad79af99df57","block_type":"box","text":"benefits to the Fund’s shareholders of maintaining the leveraged position will outweigh the current","page_number":342,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"5ae39f29-e2b1-4a74-8d58-0acb12cf7ff4","block_type":"box","text":"reduced return.","page_number":342,"box":{"x":117,"y":614,"width":117,"height":10}},{"id":"249acb71-36a5-4bf6-a012-c2d1a0855657","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit","page_number":342,"box":{"x":117,"y":645,"width":727,"height":12}},{"id":"e200a4f5-1500-4c81-a560-6ac0f80f5543","block_type":"box","text":"agreements relating to asset coverage, portfolio composition requirements and other matters. It is not","page_number":342,"box":{"x":116,"y":661,"width":753,"height":12}},{"id":"d9486914-fe4b-4dd9-b105-64e9eaf7435d","block_type":"box","text":"anticipated that observance of such covenants would impede the Manager from managing a Fund’s","page_number":342,"box":{"x":116,"y":676,"width":739,"height":12}},{"id":"fa4444fb-73c1-429a-9e90-7bfe23389960","block_type":"box","text":"portfolio in accordance with the Fund’s investment objectives and policies. However, a breach of any","page_number":342,"box":{"x":117,"y":692,"width":746,"height":12}},{"id":"fed0e740-b6d3-4c1b-b652-e66ff7ac26a0","block_type":"box","text":"such covenants not cured within the specified cure period may result in acceleration of outstanding","page_number":342,"box":{"x":116,"y":707,"width":732,"height":12}},{"id":"21237ec7-89b9-427f-a49e-a066e96cb38e","block_type":"box","text":"indebtedness and require the Fund to dispose of portfolio investments at a time when it may be","page_number":342,"box":{"x":117,"y":723,"width":706,"height":12}},{"id":"423dca31-041c-488a-8b3d-62801d8a7ad2","block_type":"box","text":"disadvantageous to do so.","page_number":342,"box":{"x":116,"y":738,"width":195,"height":12}},{"id":"ef56175d-3f80-4117-8906-90dd69f6f3a8","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such","page_number":342,"box":{"x":117,"y":769,"width":699,"height":12}},{"id":"9b09e765-390e-43dc-81eb-42a0a945fd3b","block_type":"box","text":"borrowings are no less favorable than those available from comparable sources of funds in the","page_number":342,"box":{"x":117,"y":785,"width":701,"height":12}},{"id":"58f3e844-cdde-4cbb-8e16-b7761d55aacb","block_type":"box","text":"marketplace.","page_number":342,"box":{"x":117,"y":800,"width":94,"height":12}},{"id":"eed2ffb2-ec60-471e-a27b-eff29539ce45","block_type":"box","text":"Cash Management.","page_number":342,"box":{"x":117,"y":831,"width":151,"height":12}},{"id":"360d33a2-a9d5-4f40-a4ad-6d83051fd912","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide","page_number":342,"box":{"x":269,"y":831,"width":578,"height":12}},{"id":"dd9c0484-abeb-45b2-b046-90db9f121dc5","block_type":"box","text":"liquidity necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if","page_number":342,"box":{"x":117,"y":847,"width":756,"height":12}},{"id":"aa09c8e1-ebb9-49b0-a4d6-ff3f81a51407","block_type":"box","text":"considered appropriate in the opinion of the Manager, a portion of a Fund’s assets may be invested in","page_number":342,"box":{"x":116,"y":862,"width":760,"height":12}},{"id":"61217540-5cc4-47bb-b793-b111eac246fc","block_type":"box","text":"certain types of instruments with remaining maturities of 397 days or less for liquidity purposes. Such","page_number":342,"box":{"x":116,"y":878,"width":754,"height":12}},{"id":"368def27-c20b-46ad-b91b-29ea9348fb23","block_type":"box","text":"II-3","page_number":342,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"3ad6e6d3-8998-420a-9a45-7de5aceaf2e5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":342,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a7572b67-8b1e-4f50-994b-edc2e5dcb808","block_type":"box","text":"instruments would consist of: (i) obligations of the U.S. Government, its agencies, instrumentalities,","page_number":343,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"63cc3b3e-f217-47c9-afff-4cc61662417c","block_type":"box","text":"authorities or political subdivisions (“U.S. Government Securities”); (ii) other fixed-income securities","page_number":343,"box":{"x":116,"y":102,"width":742,"height":13}},{"id":"17f743a2-74d9-41cf-86cf-ec7f5000c7bc","block_type":"box","text":"rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of comparable quality in the","page_number":343,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"aa1648fe-bc60-4788-8d7c-d0ff59a9ea55","block_type":"box","text":"opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable certificates of","page_number":343,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"334d99ea-d855-4bc3-b87a-807fa14a05f6","block_type":"box","text":"deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":343,"box":{"x":116,"y":149,"width":730,"height":12}},{"id":"aa6ff722-42cc-4011-987d-03da57f446b0","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the","page_number":343,"box":{"x":117,"y":165,"width":718,"height":12}},{"id":"dde10ce3-a8e7-468e-9d75-74deedd71ae2","block_type":"box","text":"issuer’s parent must have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or","page_number":343,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"177e1f4e-ee52-4732-9373-67fb37dcdb09","block_type":"box","text":"outstanding commercial paper, bank obligations or other short-term obligations rated Prime-1 by","page_number":343,"box":{"x":116,"y":196,"width":719,"height":12}},{"id":"9fdaa4e2-aeff-4f73-9dd7-558dd9811c10","block_type":"box","text":"Moody’s or A-1 by S&P; or, if no such ratings are available, the instrument must be of comparable","page_number":343,"box":{"x":117,"y":211,"width":731,"height":12}},{"id":"93c9236b-74ee-4845-bef8-42b5641a4574","block_type":"box","text":"quality in the opinion of the Manager. For more information on money market instruments, see “Money","page_number":343,"box":{"x":116,"y":227,"width":765,"height":12}},{"id":"e7190b4c-ce51-47d2-bc04-6a7e19116877","block_type":"box","text":"Market Securities” below.","page_number":343,"box":{"x":117,"y":242,"width":192,"height":10}},{"id":"9444c910-fca6-4584-8957-085d8edc68b3","block_type":"box","text":"Collateralized Debt Obligations.","page_number":343,"box":{"x":117,"y":273,"width":251,"height":12}},{"id":"23fbddee-a199-4ea2-b329-18c5f77bef57","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations","page_number":343,"box":{"x":369,"y":273,"width":444,"height":12}},{"id":"43597f3b-277d-41ba-bc85-768aa978c3be","block_type":"box","text":"(“CDOs”), which include collateralized bond obligations (“CBOs”), collateralized loan obligations","page_number":343,"box":{"x":117,"y":289,"width":713,"height":12}},{"id":"dbd0e77f-a19b-4836-9ce5-d2b1bc0e8777","block_type":"box","text":"(“CLOs”) and other similarly structured securities. CDOs are types of asset-backed securities. A CBO","page_number":343,"box":{"x":117,"y":304,"width":756,"height":12}},{"id":"795462b8-ffed-47e1-b539-d74392bc1957","block_type":"box","text":"is ordinarily issued by a trust or other special purpose entity (“SPE”) and is typically backed by a","page_number":343,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"af7afa90-e669-46f7-9b7b-bcdab44e5bbd","block_type":"box","text":"diversified pool of fixed-income securities (which may include high risk, below investment grade","page_number":343,"box":{"x":116,"y":335,"width":713,"height":12}},{"id":"882122f4-b97f-4182-91a9-1f7c0fbc4fb7","block_type":"box","text":"securities) held by such issuer. A CLO is ordinarily issued by a trust or other SPE and is typically","page_number":343,"box":{"x":116,"y":351,"width":722,"height":12}},{"id":"cf1e07be-88c1-404b-8b71-0754e6d5a4cf","block_type":"box","text":"collateralized by a pool of loans, which may include, among others, domestic and non-U.S. senior","page_number":343,"box":{"x":116,"y":366,"width":729,"height":12}},{"id":"d8d242e0-6e89-43c6-b385-742b7c29bd93","block_type":"box","text":"secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be","page_number":343,"box":{"x":116,"y":382,"width":756,"height":12}},{"id":"a1b6f093-ea1a-43c8-bb59-888719f04d83","block_type":"box","text":"rated below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO","page_number":343,"box":{"x":117,"y":397,"width":757,"height":12}},{"id":"8cdb7c1b-64a3-41b3-9ac3-789839addff8","block_type":"box","text":"organized outside of the United States may not be deemed to be foreign securities if the CLO is","page_number":343,"box":{"x":116,"y":413,"width":715,"height":12}},{"id":"1df55f43-b76e-4be9-8d3c-1cea343645a3","block_type":"box","text":"collateralized by a pool of loans, a substantial portion of which are U.S. loans. Although certain CDOs","page_number":343,"box":{"x":116,"y":428,"width":758,"height":12}},{"id":"f78f4c52-1b51-4f96-ba13-e840074855b0","block_type":"box","text":"may benefit from credit enhancement in the form of a senior-subordinate structure, over","page_number":343,"box":{"x":117,"y":444,"width":655,"height":12}},{"id":"4c1356b6-a24a-405f-9928-39cfd7287027","block_type":"box","text":"collateralization or bond insurance, such enhancement may not always be present, and may fail to","page_number":343,"box":{"x":116,"y":459,"width":735,"height":12}},{"id":"28fb4f5d-8776-4c9f-b9e9-6a8e25b64344","block_type":"box","text":"protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may use","page_number":343,"box":{"x":117,"y":475,"width":713,"height":12}},{"id":"81197a80-e8a8-4c42-9e29-a201a5a7e84e","block_type":"box","text":"derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly,","page_number":343,"box":{"x":116,"y":490,"width":758,"height":12}},{"id":"82072532-38b1-4820-ad23-d8d781f035ee","block_type":"box","text":"which entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge","page_number":343,"box":{"x":116,"y":506,"width":742,"height":12}},{"id":"0ed84a19-d497-4e6d-b455-5c92bbf5ab39","block_type":"box","text":"management fees and administrative expenses, which are in addition to those of a Fund.","page_number":343,"box":{"x":117,"y":521,"width":664,"height":12}},{"id":"16d80e58-dfca-4f63-876e-138ce001af36","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called","page_number":343,"box":{"x":117,"y":552,"width":724,"height":12}},{"id":"f7fd8a62-b1c4-48b5-b871-80dc4c38de8b","block_type":"box","text":"tranches, varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss","page_number":343,"box":{"x":116,"y":568,"width":765,"height":12}},{"id":"06d9bebc-1f7f-47dc-8a37-58affcf37525","block_type":"box","text":"from defaults from the bonds or loans in the SPE and serves to protect the other, more senior tranches","page_number":343,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"d37ad92c-7740-49e4-83b7-3cd0babfb97c","block_type":"box","text":"from default (though such protection is not complete). Since it is partially protected from defaults, a","page_number":343,"box":{"x":116,"y":599,"width":737,"height":12}},{"id":"ed0e298d-3ca1-4ad2-ac47-eba2aadc93b1","block_type":"box","text":"senior tranche from a CBO or CLO typically has higher ratings and lower yields than its underlying","page_number":343,"box":{"x":116,"y":614,"width":733,"height":12}},{"id":"a6b2dd7e-64c4-48a5-a050-4b08961ba6e0","block_type":"box","text":"securities, and may be rated investment grade. Despite the protection from the equity tranche, CBO or","page_number":343,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"5b99e264-286d-47ed-b2c9-da15c99fda3d","block_type":"box","text":"CLO tranches can experience substantial losses due to actual defaults, downgrades of the underlying","page_number":343,"box":{"x":117,"y":645,"width":758,"height":12}},{"id":"2599fcaf-b3ff-4aa9-b2ea-d4da6a300c56","block_type":"box","text":"collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage tests,","page_number":343,"box":{"x":116,"y":661,"width":752,"height":12}},{"id":"d8164ed4-9e70-4fcb-a04d-d1db324d7fe1","block_type":"box","text":"increased sensitivity to defaults due to collateral default and disappearance of protecting tranches,","page_number":343,"box":{"x":117,"y":676,"width":728,"height":12}},{"id":"fc83a018-3237-4d4d-9f59-c3dc5c7b6144","block_type":"box","text":"market anticipation of defaults as well as investor aversion to CBO or CLO securities as a class.","page_number":343,"box":{"x":117,"y":692,"width":710,"height":12}},{"id":"aabf6296-9769-4de7-b487-e0dc4b9d2649","block_type":"box","text":"Interest on certain tranches of a CDO may be paid in kind or deferred and capitalized (paid in the form","page_number":343,"box":{"x":117,"y":707,"width":757,"height":12}},{"id":"27244f08-5be7-4671-9585-a4b4b4f4ecf0","block_type":"box","text":"of obligations of the same type rather than cash), which involves continued exposure to default risk","page_number":343,"box":{"x":116,"y":723,"width":734,"height":12}},{"id":"9579a9d1-bf34-4410-9b74-bd2d61d3c832","block_type":"box","text":"with respect to such payments.","page_number":343,"box":{"x":116,"y":738,"width":229,"height":12}},{"id":"6bc47b63-aed1-4ff1-9325-e5fcf12fe63b","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the","page_number":343,"box":{"x":116,"y":769,"width":728,"height":12}},{"id":"f505cf8d-31d8-4629-8347-aeea6dbee8ed","block_type":"box","text":"class of the CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately","page_number":343,"box":{"x":116,"y":785,"width":712,"height":12}},{"id":"11da78af-0025-43a4-adb9-0ced98ad4e6f","block_type":"box","text":"offered and sold, and thus are not registered under the securities laws. However, an active dealer","page_number":343,"box":{"x":116,"y":800,"width":725,"height":12}},{"id":"506729dd-3ac8-4a59-b514-bf41427938f9","block_type":"box","text":"market may exist for CDOs, allowing a CDO to qualify for Rule 144A transactions. In addition to the","page_number":343,"box":{"x":117,"y":816,"width":736,"height":12}},{"id":"11f5b024-51bf-4730-a745-d5a75644c3f6","block_type":"box","text":"normal risks associated with fixed-income securities and asset-backed securities generally discussed","page_number":343,"box":{"x":117,"y":831,"width":755,"height":12}},{"id":"22923a24-1233-4e35-b479-8b69f04d1ae0","block_type":"box","text":"elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the possibility that","page_number":343,"box":{"x":116,"y":847,"width":742,"height":12}},{"id":"f3bd73ef-d491-4a36-bce5-46f3d70c0f9d","block_type":"box","text":"distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":343,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"06c7fbf9-4464-4f63-8599-5b9e5786e578","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally","page_number":343,"box":{"x":117,"y":878,"width":708,"height":12}},{"id":"f7b3c272-9de0-4bee-b8b0-f81d40013cb6","block_type":"box","text":"II-4","page_number":343,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"f1704720-96f0-4b82-a9ef-a61bb6079a3e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":343,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"83c98873-0354-4d02-a282-41566831c5f9","block_type":"box","text":"recognized statistical rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that","page_number":344,"box":{"x":117,"y":87,"width":754,"height":12}},{"id":"56febc42-39e2-4738-af08-32ef0bdf7309","block_type":"box","text":"are subordinate to other tranches; (iv) the structure and complexity of the transaction and the legal","page_number":344,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"5a48b025-793b-4dc1-a79d-0cc07b60e6ce","block_type":"box","text":"documents could lead to disputes among investors regarding the characterization of proceeds; (v) the","page_number":344,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"98ae941b-a486-451a-a835-d76a982b3a48","block_type":"box","text":"investment return achieved by the Fund could be significantly different than those predicted by financial","page_number":344,"box":{"x":117,"y":134,"width":771,"height":12}},{"id":"de5497de-3480-4596-9d1a-4a3d02f89eb7","block_type":"box","text":"models; (vi) the lack of a readily available secondary market for CDOs; (vii) the risk of forced “fire sale”","page_number":344,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"caab3dde-adc1-43e1-a9b9-455c5f2c383e","block_type":"box","text":"liquidation due to technical defaults such as coverage test failures; and (viii) the CDO’s manager may","page_number":344,"box":{"x":117,"y":165,"width":756,"height":12}},{"id":"5faf6975-fa7a-43b5-b791-013d1b201e93","block_type":"box","text":"perform poorly.","page_number":344,"box":{"x":117,"y":180,"width":117,"height":12}},{"id":"edf27edf-c779-46f1-a681-c6488836b854","block_type":"box","text":"Commercial Paper.","page_number":344,"box":{"x":117,"y":211,"width":150,"height":12}},{"id":"0d6cee58-ccca-4373-a5b1-570571b07ba8","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable","page_number":344,"box":{"x":268,"y":211,"width":607,"height":12}},{"id":"00d892c3-71c0-4006-af62-8abd8b922579","block_type":"box","text":"by each Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance","page_number":344,"box":{"x":117,"y":227,"width":760,"height":12}},{"id":"f24c86a2-4742-4dcb-9d65-0d79e598daa4","block_type":"box","text":"on the “private placement” exemption from registration afforded by Section 4(a)(2) of the Securities","page_number":344,"box":{"x":116,"y":242,"width":739,"height":12}},{"id":"0a2ccbaf-0516-4349-aaf0-0daaa17cab81","block_type":"box","text":"Act. Section 4(a)(2) paper is restricted as to disposition under the Federal securities laws, and is","page_number":344,"box":{"x":116,"y":258,"width":719,"height":12}},{"id":"b890ce0f-b0c0-43ac-b149-728669262500","block_type":"box","text":"frequently sold (and resold) to institutional investors such as the Fund through or with the assistance of","page_number":344,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"4cfbb8c6-b345-450c-84aa-e304ebf2010c","block_type":"box","text":"investment dealers who make a market in the Section 4(a)(2) paper, thereby providing liquidity. Certain","page_number":344,"box":{"x":117,"y":289,"width":769,"height":12}},{"id":"d948a80e-b8f4-4660-8e57-35d8e80e54b8","block_type":"box","text":"transactions in Section 4(a)(2) paper may qualify for the registration exemption provided in Rule 144A","page_number":344,"box":{"x":116,"y":304,"width":759,"height":12}},{"id":"805f4201-f14f-46e8-9302-28b6e1e4b535","block_type":"box","text":"under the Securities Act. Most Funds can purchase commercial paper rated (at the time of purchase)","page_number":344,"box":{"x":117,"y":320,"width":754,"height":12}},{"id":"b013d955-eaf7-4bb3-8def-af2d585b73ac","block_type":"box","text":"“A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub-adviser,","page_number":344,"box":{"x":116,"y":335,"width":772,"height":12}},{"id":"c51034a9-5c7a-4bf0-87dd-b5385fffa0d4","block_type":"box","text":"“high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":344,"box":{"x":116,"y":351,"width":675,"height":12}},{"id":"2fbd709d-1c23-4770-822a-1bba0138b923","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all","page_number":344,"box":{"x":117,"y":382,"width":740,"height":12}},{"id":"3956f21e-9b2b-460c-bae6-570ea5a574f4","block_type":"box","text":"fixed income securities, commercial paper prices are susceptible to fluctuations in interest rates. If","page_number":344,"box":{"x":116,"y":397,"width":732,"height":12}},{"id":"082f8881-c1cc-4097-9719-0fd2b9811ec7","block_type":"box","text":"interest rates rise, commercial paper prices will decline and vice versa. However, the short-term nature","page_number":344,"box":{"x":117,"y":413,"width":767,"height":12}},{"id":"dc21c33c-8ddf-4aaa-8345-c1d5687615a2","block_type":"box","text":"of a commercial paper investment generally makes it less susceptible to volatility than many other fixed","page_number":344,"box":{"x":116,"y":428,"width":771,"height":12}},{"id":"894455b8-6217-4419-af81-e3157542a887","block_type":"box","text":"income securities because interest rate risk typically increases as maturity lengths increase.","page_number":344,"box":{"x":117,"y":444,"width":686,"height":12}},{"id":"f2784693-5ef2-48f4-8e88-0ce3aa8f4a6f","block_type":"box","text":"Commercial paper tends to yield smaller returns than longer-term corporate debt because securities","page_number":344,"box":{"x":117,"y":459,"width":746,"height":12}},{"id":"be58c52a-0526-4328-8137-d1b85bf3ac18","block_type":"box","text":"with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":344,"box":{"x":116,"y":475,"width":686,"height":12}},{"id":"29cbeecd-3801-4ad6-861e-d20e1fc25ac1","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":344,"box":{"x":117,"y":506,"width":535,"height":12}},{"id":"67af4b35-685a-46f9-b56c-784c6b188063","block_type":"box","text":"Certain Funds seek to gain","page_number":344,"box":{"x":653,"y":506,"width":210,"height":12}},{"id":"d849bd40-40eb-42e8-a2fa-e49f140475a6","block_type":"box","text":"exposure to the commodities markets primarily through investments in hybrid instruments. Hybrid","page_number":344,"box":{"x":116,"y":521,"width":727,"height":12}},{"id":"4c7dada6-3fe7-4977-a541-a8408fe27058","block_type":"box","text":"instruments are either equity or debt derivative securities with one or more commodity-dependent","page_number":344,"box":{"x":117,"y":537,"width":727,"height":12}},{"id":"5c1f5b7f-13a9-4432-99ce-66d1f4f10e0b","block_type":"box","text":"components that have payment features similar to a commodity futures contract, a commodity option","page_number":344,"box":{"x":116,"y":552,"width":753,"height":12}},{"id":"81e7b9bc-1abf-49e6-b301-83e8b35eb44b","block_type":"box","text":"contract, or a combination of both. Therefore, these instruments are “commodity-linked.” They are","page_number":344,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"2ab4e8d0-8a3a-42f5-bbb5-810e57669aa8","block_type":"box","text":"considered “hybrid” instruments because they have both commodity-like and security-like","page_number":344,"box":{"x":116,"y":583,"width":667,"height":12}},{"id":"0cc3f7b7-c435-4e5e-be6d-5ab8e1f159c5","block_type":"box","text":"characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":344,"box":{"x":116,"y":599,"width":738,"height":12}},{"id":"5abff087-bbfe-44ae-8d46-3bbcb079c623","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable","page_number":344,"box":{"x":116,"y":614,"width":766,"height":12}},{"id":"65a60b49-d6a7-4725-b808-19262e84b68b","block_type":"box","text":"economic variable.","page_number":344,"box":{"x":116,"y":630,"width":145,"height":9}},{"id":"692ca626-114c-445f-a1d8-3985239bc19e","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than","page_number":344,"box":{"x":116,"y":661,"width":680,"height":12}},{"id":"9e974b30-c7a0-43eb-b5f8-8b753cba6c5e","block_type":"box","text":"investments in traditional equity and debt securities when the value of those traditional securities is","page_number":344,"box":{"x":117,"y":676,"width":731,"height":12}},{"id":"c6af7d2d-3935-44f7-b9a8-0a9616c6a669","block_type":"box","text":"declining due to adverse economic conditions. As an example, during periods of rising inflation, debt","page_number":344,"box":{"x":116,"y":692,"width":744,"height":12}},{"id":"f3d1c054-a2dc-4dbc-aa45-78f5523ae744","block_type":"box","text":"securities have historically tended to decline in value due to the general increase in prevailing interest","page_number":344,"box":{"x":116,"y":707,"width":753,"height":12}},{"id":"6846d4be-2023-41e8-a0fa-98cea0f0eb83","block_type":"box","text":"rates. Conversely, during those same periods of rising inflation, the prices of certain commodities, such","page_number":344,"box":{"x":117,"y":723,"width":763,"height":12}},{"id":"33712150-8b8b-4f52-b299-afbe1a0876db","block_type":"box","text":"as oil and metals, have historically tended to increase. Of course, there cannot be any guarantee that","page_number":344,"box":{"x":116,"y":738,"width":752,"height":12}},{"id":"7158eac5-f9af-478c-9041-2fc24d11a89d","block_type":"box","text":"these investments will perform in that manner in the future, and at certain times the price movements","page_number":344,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"cdc8d6c1-283d-4f5b-89e1-41cba7dfbda6","block_type":"box","text":"of commodity-linked instruments have been parallel to those of debt and equity securities.","page_number":344,"box":{"x":116,"y":769,"width":665,"height":12}},{"id":"a7302d9b-fa8c-4b3d-8326-52780e7ea5f5","block_type":"box","text":"Commodities have historically tended to increase and decrease in value during different parts of the","page_number":344,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"a0004a74-5159-4433-ab97-475fd67771e4","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in","page_number":344,"box":{"x":117,"y":800,"width":753,"height":12}},{"id":"4fc7872a-2cf1-443f-87e1-1cb82bf0d106","block_type":"box","text":"tandem with the prices of financial assets and thus may not provide overall portfolio diversification","page_number":344,"box":{"x":116,"y":816,"width":725,"height":12}},{"id":"ba08425e-c596-4781-999d-666ffa70524c","block_type":"box","text":"benefits. Under favorable economic conditions, the Fund’s investments may be expected to under","page_number":344,"box":{"x":117,"y":831,"width":731,"height":12}},{"id":"a0185d98-8994-492d-906a-84e2caabd858","block_type":"box","text":"perform an investment in traditional securities. Over the long term, the returns on the Fund’s","page_number":344,"box":{"x":117,"y":847,"width":688,"height":12}},{"id":"028fbc87-f51b-4b6d-ac44-a139938b9e34","block_type":"box","text":"investments are expected to exhibit low or negative correlation with stocks and bonds.","page_number":344,"box":{"x":117,"y":862,"width":643,"height":12}},{"id":"40e21442-dca7-49c2-9149-52310391d3cc","block_type":"box","text":"II-5","page_number":344,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"97bf8ef8-ce51-4610-b218-0ec1141e7d9c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":344,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"07829686-5eab-477d-8f5a-ceaf445cd364","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":345,"box":{"x":117,"y":87,"width":222,"height":12}},{"id":"da07bc73-c18c-4d11-9071-0c250789d817","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion","page_number":345,"box":{"x":341,"y":87,"width":546,"height":12}},{"id":"08683667-9796-420b-85c0-fb56820e1c4f","block_type":"box","text":"from regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid","page_number":345,"box":{"x":116,"y":102,"width":761,"height":13}},{"id":"cdf8515b-2b75-4e70-84d0-6fcaa2d99108","block_type":"box","text":"instrument that qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid","page_number":345,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"d1cbff9a-60e8-415f-ba81-c9179505d04c","block_type":"box","text":"instrument is considered to be predominantly a security if (a) the issuer of the hybrid instrument","page_number":345,"box":{"x":117,"y":134,"width":712,"height":12}},{"id":"69cec2ab-9537-4ad4-ad9d-f55f13a44e0e","block_type":"box","text":"receives payment in full of the purchase price of the hybrid instrument, substantially","page_number":345,"box":{"x":117,"y":149,"width":624,"height":12}},{"id":"9bad5202-d0d8-4c13-938c-6dce170a0d4d","block_type":"box","text":"contemporaneously with delivery of the hybrid instrument; (b) the purchaser or holder of the hybrid","page_number":345,"box":{"x":116,"y":165,"width":735,"height":12}},{"id":"5ff2db71-9fab-4ea3-a508-cae43a389ead","block_type":"box","text":"instrument is not required to make any payment to the issuer in addition to the purchase price paid","page_number":345,"box":{"x":117,"y":180,"width":735,"height":12}},{"id":"fd1911a9-baf9-4a55-afeb-5d171e74067c","block_type":"box","text":"under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the","page_number":345,"box":{"x":117,"y":196,"width":743,"height":12}},{"id":"633a61c4-49b3-4867-9394-99bab6209327","block_type":"box","text":"hybrid instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the","page_number":345,"box":{"x":117,"y":211,"width":770,"height":12}},{"id":"907a6c57-21c1-44bf-926e-dcb818543fa2","block_type":"box","text":"instrument to mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as","page_number":345,"box":{"x":117,"y":227,"width":768,"height":12}},{"id":"d0726361-dc49-431b-ade7-b55e21702b8b","block_type":"box","text":"a contract of sale of a commodity for future delivery (or option on such a contract) subject to applicable","page_number":345,"box":{"x":116,"y":242,"width":768,"height":12}},{"id":"f5aae5e3-00a1-4275-842f-8e509510997e","block_type":"box","text":"provisions of the Commodity Exchange Act. Hybrid instruments may be principal protected, partially","page_number":345,"box":{"x":117,"y":258,"width":743,"height":12}},{"id":"1cfadd57-cb84-4f62-b027-fd677d492c15","block_type":"box","text":"protected, or offer no principal protection. A principal protected hybrid instrument means that the issuer","page_number":345,"box":{"x":117,"y":273,"width":768,"height":12}},{"id":"9286fbdc-f360-4886-b7c9-82d76a411242","block_type":"box","text":"will pay, at a minimum, the par value of the note at maturity. Therefore, if the commodity value to which","page_number":345,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"f12d2232-dd4f-4e49-9778-b637d052cd57","block_type":"box","text":"the hybrid instrument is linked declines over the life of the note, the Fund will receive at maturity the","page_number":345,"box":{"x":116,"y":304,"width":744,"height":12}},{"id":"7246e10f-8ff1-4589-9907-ee853ba1871e","block_type":"box","text":"face or stated value of the note. With a principal protected hybrid instrument, the Fund will receive at","page_number":345,"box":{"x":116,"y":320,"width":750,"height":12}},{"id":"3d2a277e-14bf-4125-b97f-110c8ca2a26e","block_type":"box","text":"maturity the greater of the par value of the note or the increase in its value based on the underlying","page_number":345,"box":{"x":117,"y":335,"width":739,"height":12}},{"id":"61a06ea7-defe-44d3-8415-32705d7a6fcb","block_type":"box","text":"commodity or index. This protection is, in effect, an option whose value is subject to the volatility and","page_number":345,"box":{"x":116,"y":351,"width":751,"height":12}},{"id":"89383d70-8bde-40fe-8c54-76a3c924544e","block_type":"box","text":"price level of the underlying commodity. The Manager’s decision whether to use principal protection","page_number":345,"box":{"x":117,"y":366,"width":743,"height":12}},{"id":"cdeb0cd7-3300-4eee-9ad2-63772b6440c8","block_type":"box","text":"depends in part on the cost of the protection. In addition, the protection feature depends upon the","page_number":345,"box":{"x":116,"y":382,"width":728,"height":12}},{"id":"a503bf0c-05a5-4b81-b19f-17ef190f2167","block_type":"box","text":"ability of the issuer to meet its obligation to buy back the security, and, therefore, depends on the","page_number":345,"box":{"x":116,"y":397,"width":724,"height":12}},{"id":"2cb08450-b8d6-40d7-abbd-62cb906a96c1","block_type":"box","text":"creditworthiness of the issuer. With full principal protection, the Fund will receive at maturity of the","page_number":345,"box":{"x":116,"y":413,"width":731,"height":12}},{"id":"b7ccd4bf-a0c6-4aa8-a926-c0af1658e85c","block_type":"box","text":"hybrid instrument either the stated par value of the hybrid instrument, or potentially, an amount greater","page_number":345,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"7781a587-38fe-4eec-9030-f65c0db2fc30","block_type":"box","text":"than the stated par value if the underlying commodity, index, futures contract or economic variable to","page_number":345,"box":{"x":116,"y":444,"width":753,"height":12}},{"id":"9c16307e-8c44-4466-8bbc-23f734caf432","block_type":"box","text":"which the hybrid instrument is linked has increased in value. Partially protected hybrid instruments may","page_number":345,"box":{"x":116,"y":459,"width":770,"height":12}},{"id":"ea91f84d-9270-4131-8736-6aea28d988e1","block_type":"box","text":"suffer some loss of principal if the underlying commodity, index, futures contract or economic variable","page_number":345,"box":{"x":116,"y":475,"width":758,"height":12}},{"id":"38b72609-deb0-4e41-b39f-05f922368e10","block_type":"box","text":"to which the hybrid instrument is linked declines in value during the term of the hybrid instrument.","page_number":345,"box":{"x":116,"y":490,"width":726,"height":12}},{"id":"27b64225-ce53-47ac-8bd7-f1d1e694574b","block_type":"box","text":"However, partially protected hybrid instruments have a specified limit as to the amount of principal that","page_number":345,"box":{"x":117,"y":506,"width":764,"height":12}},{"id":"d3219b05-b928-4e70-a382-b920e9373118","block_type":"box","text":"they may lose.","page_number":345,"box":{"x":116,"y":521,"width":113,"height":12}},{"id":"938f03d7-1ce7-47b9-8b83-592a071f6ee6","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":345,"box":{"x":116,"y":552,"width":355,"height":12}},{"id":"ad4e2df6-8fb0-4c2d-a6af-5ad259e57f9b","block_type":"box","text":"Certain Funds may invest in hybrid instruments that","page_number":345,"box":{"x":473,"y":552,"width":393,"height":12}},{"id":"c5c1e610-dce2-471e-acd7-cc20e771800e","block_type":"box","text":"offer no principal protection. At maturity, there is a risk that the underlying commodity price, futures","page_number":345,"box":{"x":116,"y":568,"width":738,"height":12}},{"id":"4a1cf02f-ebf2-483b-868a-177b596e6f82","block_type":"box","text":"contract, index or other economic variable may have declined sufficiently in value such that some or all","page_number":345,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"4c7df228-7879-4124-8952-50e142380cc7","block_type":"box","text":"of the face value of the hybrid instrument might not be returned. The Manager, at its discretion, may","page_number":345,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"a1a9f806-6b52-4d7c-a035-5b84480594f6","block_type":"box","text":"invest in a partially protected principal structured note or a note without principal protection. In deciding","page_number":345,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"d8c5cd21-e63c-4bd9-aaf5-0fcb347bf2c2","block_type":"box","text":"to purchase a note without principal protection, the Manager may consider, among other things, the","page_number":345,"box":{"x":116,"y":630,"width":743,"height":12}},{"id":"30c02c64-430e-42b7-8b6f-e8382331dd22","block_type":"box","text":"expected performance of the underlying commodity futures contract, index or other economic variable","page_number":345,"box":{"x":116,"y":645,"width":761,"height":12}},{"id":"6fb9edd1-9e36-4de3-8a36-e5cb100c1300","block_type":"box","text":"over the term of the note, the cost of the note, and any other economic factors that the Manager","page_number":345,"box":{"x":116,"y":661,"width":713,"height":12}},{"id":"864c685d-233b-4be7-99d8-ea7d829f9925","block_type":"box","text":"believes are relevant.","page_number":345,"box":{"x":117,"y":676,"width":157,"height":10}},{"id":"c1029a4c-13f0-458e-a82c-f1af2263ca76","block_type":"box","text":"Limitations on Leverage.","page_number":345,"box":{"x":116,"y":707,"width":181,"height":12}},{"id":"d4644eb7-2768-4085-b871-db21a2f93b9e","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve","page_number":345,"box":{"x":304,"y":707,"width":534,"height":12}},{"id":"06b55e90-7c79-4530-acd5-56982f7140d6","block_type":"box","text":"leverage. To avoid being subject to undue leverage risk, a Fund will seek to limit the amount of","page_number":345,"box":{"x":117,"y":723,"width":703,"height":12}},{"id":"2c2f084f-7f84-4683-a830-886adbe699ec","block_type":"box","text":"economic leverage it has under any one hybrid instrument that it buys and the leverage of the Fund’s","page_number":345,"box":{"x":116,"y":738,"width":750,"height":12}},{"id":"e5fe8ff7-a8d3-49d9-b166-bd5c600b2ea2","block_type":"box","text":"overall portfolio. A Fund will not invest in a hybrid instrument if, at the time of purchase: (i) that","page_number":345,"box":{"x":116,"y":754,"width":699,"height":12}},{"id":"f624775c-c839-4823-b0d8-21a3c402407f","block_type":"box","text":"instrument’s “leverage ratio” exceeds 300% of the price increase in the underlying commodity, futures","page_number":345,"box":{"x":117,"y":769,"width":753,"height":12}},{"id":"2cba551d-9939-44bf-b033-6a61ffd12f16","block_type":"box","text":"contract, index or other economic variable or (ii) the Fund’s “portfolio leverage ratio” exceeds 150%,","page_number":345,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"0e0e35dc-b3f8-447f-9948-377861ade9be","block_type":"box","text":"measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a hybrid","page_number":345,"box":{"x":117,"y":800,"width":737,"height":12}},{"id":"6ae1b225-5451-400a-8b68-6fafebeab55b","block_type":"box","text":"instrument, assuming a one percent price increase in the underlying commodity, futures contract, index","page_number":345,"box":{"x":117,"y":816,"width":765,"height":12}},{"id":"540e4721-dcfb-4716-b42a-86207886648b","block_type":"box","text":"or other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1%","page_number":345,"box":{"x":116,"y":831,"width":758,"height":12}},{"id":"80330b25-233d-4a88-99cd-609e584c35a0","block_type":"box","text":"gain in the underlying economic variable would be expected to result in a 1.5% gain in value for the","page_number":345,"box":{"x":116,"y":847,"width":741,"height":12}},{"id":"2a8cfd57-27a1-4994-a8c1-96b2a5582c25","block_type":"box","text":"hybrid instrument. Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5%","page_number":345,"box":{"x":117,"y":862,"width":762,"height":12}},{"id":"1a0d324d-9108-45d4-915f-c55dca27b997","block_type":"box","text":"loss if the underlying economic variable lost 1% of its value. “Portfolio leverage ratio” is defined as the","page_number":345,"box":{"x":117,"y":878,"width":758,"height":12}},{"id":"69bd5a65-90ce-46cf-93e8-ca7f43f549c3","block_type":"box","text":"II-6","page_number":345,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"f9daf021-f2dd-487c-ad25-a45b6055b4e3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":345,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"076d9f27-a271-49fc-adaa-05d5efd28cd9","block_type":"box","text":"average (mean) leverage ratio of all instruments in a Fund’s portfolio, weighted by the market values of","page_number":346,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"cd3d9a77-3be0-498f-89a3-07296a3f522d","block_type":"box","text":"such instruments or, in the case of futures contracts, their notional values. A Fund may at times or from","page_number":346,"box":{"x":116,"y":102,"width":771,"height":13}},{"id":"9674c051-bde3-4868-8f8d-0b41a74c15d3","block_type":"box","text":"time to time decide not to use leverage in its investments or use less leverage than may otherwise be","page_number":346,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"c7ab140e-a058-4dce-8482-22729d9335ec","block_type":"box","text":"allowable.","page_number":346,"box":{"x":116,"y":134,"width":79,"height":9}},{"id":"8167b7e8-1b31-4d64-bef2-ea3e54c66d36","block_type":"box","text":"Counterparty Risk.","page_number":346,"box":{"x":117,"y":165,"width":136,"height":12}},{"id":"08be5de3-cff0-44a4-bb90-199377df761a","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded","page_number":346,"box":{"x":255,"y":165,"width":625,"height":12}},{"id":"8463b2d2-0e52-481e-807e-7362c0110896","block_type":"box","text":"futures and options, which are standard contracts, hybrid instruments are customized securities, tailor","page_number":346,"box":{"x":116,"y":180,"width":760,"height":12}},{"id":"1662e3c8-0ae9-4bb6-84d3-13a556791c26","block_type":"box","text":"made by a specific issuer. With a listed futures or options contract, an investor’s counterparty is the","page_number":346,"box":{"x":117,"y":196,"width":740,"height":12}},{"id":"2a95b879-0f7e-4d91-a836-2cc3e3ad9754","block_type":"box","text":"exchange clearinghouse. Exchange clearinghouses are capitalized by the exchange members and","page_number":346,"box":{"x":116,"y":211,"width":738,"height":12}},{"id":"5ef159cb-0dd6-45a0-937a-423c9ae2c91c","block_type":"box","text":"typically have high investment grade ratings (","page_number":346,"box":{"x":116,"y":227,"width":336,"height":12}},{"id":"8927debf-c562-4600-9ac2-8600625d7d69","block_type":"box","text":"e.g.","page_number":346,"box":{"x":453,"y":229,"width":26,"height":10}},{"id":"c986fcfd-de24-41ea-9345-1f279fcc2f4c","block_type":"box","text":", ratings of AAA or AA by S&P). Therefore, the risk is","page_number":346,"box":{"x":482,"y":227,"width":396,"height":12}},{"id":"f204d243-00f8-4c34-bb06-fe776c00d77b","block_type":"box","text":"small that an exchange clearinghouse might be unable to meet its obligations at maturity. However,","page_number":346,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"37cedcb6-d1ca-43af-9d27-6cffc7c77173","block_type":"box","text":"with a hybrid instrument, a Fund will take on the counterparty credit risk of the issuer. That is, at","page_number":346,"box":{"x":116,"y":258,"width":715,"height":12}},{"id":"a174742c-7317-4697-bb3f-2f54249f335a","block_type":"box","text":"maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its obligations","page_number":346,"box":{"x":117,"y":273,"width":767,"height":12}},{"id":"f8cda987-d29a-4aa5-afb6-05fd7879412b","block_type":"box","text":"under the structured note.","page_number":346,"box":{"x":117,"y":289,"width":196,"height":9}},{"id":"dce952d7-4681-48ea-a0fa-32a7591448f1","block_type":"box","text":"Convertible Securities.","page_number":346,"box":{"x":117,"y":320,"width":180,"height":9}},{"id":"a0c38b1c-4ffb-4587-b9bd-1f450f45a8c3","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other","page_number":346,"box":{"x":298,"y":320,"width":554,"height":12}},{"id":"cc80b9b2-3acd-4fa2-b182-a04990532342","block_type":"box","text":"security that may be converted into or exchanged for a prescribed amount of common stock or other","page_number":346,"box":{"x":116,"y":335,"width":750,"height":12}},{"id":"452f8599-7aa2-48f0-b9d0-be0c064c9e2e","block_type":"box","text":"equity security of the same or a different issuer within a particular period of time at a specified price or","page_number":346,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"1892e12b-5b4c-4912-810f-bb796d253968","block_type":"box","text":"formula. A convertible security entitles the holder to receive interest paid or accrued on debt or the","page_number":346,"box":{"x":116,"y":366,"width":734,"height":12}},{"id":"dbd84139-b3b6-4a8f-9431-db9a78f97551","block_type":"box","text":"dividend paid on preferred stock until the convertible security matures or is redeemed, converted or","page_number":346,"box":{"x":116,"y":382,"width":742,"height":12}},{"id":"c619e1a1-f485-4d72-9215-2e5bb32be797","block_type":"box","text":"exchanged. Before conversion, convertible securities have characteristics similar to nonconvertible","page_number":346,"box":{"x":116,"y":397,"width":738,"height":12}},{"id":"c9ebc524-cc7d-4bc4-bafd-ea791a4031e9","block_type":"box","text":"income securities in that they ordinarily provide a stable stream of income with generally higher yields","page_number":346,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"cc86868e-8a8e-4c88-b6d4-7cb7ca3ac03b","block_type":"box","text":"than those of common stocks of the same or similar issuers, but lower yields than comparable","page_number":346,"box":{"x":116,"y":428,"width":703,"height":12}},{"id":"80c12a87-ec03-4951-9ec7-2e71445a6ca7","block_type":"box","text":"nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":346,"box":{"x":117,"y":444,"width":767,"height":12}},{"id":"0066af40-c8cd-4783-8303-7ca70e9f874c","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The","page_number":346,"box":{"x":116,"y":459,"width":764,"height":12}},{"id":"c3b6f4bf-43b0-4db8-9e81-d9bf4fbfc2b3","block_type":"box","text":"credit standing of the issuer and other factors also may have an effect on the convertible security’s","page_number":346,"box":{"x":116,"y":475,"width":736,"height":12}},{"id":"368fbb4e-3c5c-4f06-b34e-f4caddad55e8","block_type":"box","text":"investment value. Convertible securities rank senior to common stock in a corporation’s capital","page_number":346,"box":{"x":117,"y":490,"width":706,"height":12}},{"id":"cf9b6c53-78cc-4cc4-a2c8-32a31e5c66e3","block_type":"box","text":"structure but are usually subordinated to comparable nonconvertible securities. Convertible securities","page_number":346,"box":{"x":116,"y":506,"width":757,"height":12}},{"id":"c2b738a6-a7d6-4c96-a78a-77a4d72861ce","block_type":"box","text":"may be subject to redemption at the option of the issuer at a price established in the convertible","page_number":346,"box":{"x":117,"y":521,"width":714,"height":12}},{"id":"3cb14728-baa0-496e-893b-24585f4afdba","block_type":"box","text":"security’s governing instrument.","page_number":346,"box":{"x":116,"y":537,"width":241,"height":12}},{"id":"be198663-eab2-492a-8154-14187eca1da4","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an","page_number":346,"box":{"x":116,"y":568,"width":710,"height":12}},{"id":"9cf28838-ae58-4cf8-a4e2-2e9729665e69","block_type":"box","text":"investment company seeking a high total return from capital appreciation and investment income.","page_number":346,"box":{"x":117,"y":583,"width":727,"height":12}},{"id":"6ef8e378-35b4-4346-8907-7632484af165","block_type":"box","text":"These characteristics include the potential for capital appreciation as the value of the underlying","page_number":346,"box":{"x":116,"y":599,"width":716,"height":12}},{"id":"fd6fde66-6e14-4980-aa9b-97d8f01583b1","block_type":"box","text":"common stock increases, the relatively high yield received from dividend or interest payments as","page_number":346,"box":{"x":116,"y":614,"width":723,"height":12}},{"id":"94562967-6fb5-4f8d-b827-fb719d91f2ff","block_type":"box","text":"compared to common stock dividends and decreased risks of decline in value relative to the underlying","page_number":346,"box":{"x":116,"y":630,"width":770,"height":12}},{"id":"e5d262c6-f419-4c5f-a80d-21cb9d5f836e","block_type":"box","text":"common stock due to their fixed-income nature. As a result of the conversion feature, however, the","page_number":346,"box":{"x":116,"y":645,"width":739,"height":11}},{"id":"33907ef6-45e2-45e1-b255-82d9c9cb9d69","block_type":"box","text":"interest rate or dividend preference on a convertible security is generally less than would be the case if","page_number":346,"box":{"x":117,"y":661,"width":762,"height":12}},{"id":"639c42c0-f602-430c-8336-16962d2fb9ce","block_type":"box","text":"the securities were issued in nonconvertible form.","page_number":346,"box":{"x":116,"y":676,"width":367,"height":10}},{"id":"bfb0008b-eb67-45d4-a0f1-dd480d643f39","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security","page_number":346,"box":{"x":117,"y":707,"width":755,"height":12}},{"id":"b2369302-2ff7-495c-b9e3-074c17bc912f","block_type":"box","text":"relative to its credit quality and the potential capital appreciation that is offered by the underlying","page_number":346,"box":{"x":117,"y":723,"width":710,"height":12}},{"id":"206364e4-754b-4eab-a5ab-ea0534e65822","block_type":"box","text":"common stock, among other things.","page_number":346,"box":{"x":116,"y":738,"width":265,"height":12}},{"id":"0d5f0d6d-44e3-4c9d-a119-f38ac8408cd0","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":346,"box":{"x":117,"y":769,"width":758,"height":10}},{"id":"14ca5c59-3dda-400c-be01-835f0822a08b","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the","page_number":346,"box":{"x":116,"y":785,"width":734,"height":12}},{"id":"fdd4b7f3-6de4-401b-99fd-fb15120c15b8","block_type":"box","text":"underlying equity securities may be quoted in the currency of the country where the issuer is domiciled.","page_number":346,"box":{"x":117,"y":800,"width":764,"height":12}},{"id":"45c567aa-0352-4b67-8cec-b9b62ed1235a","block_type":"box","text":"As a result, fluctuations in the exchange rate between the currency in which the debt security is","page_number":346,"box":{"x":116,"y":816,"width":707,"height":12}},{"id":"6af5cd6f-cbbe-498f-8e3b-58bebb52e233","block_type":"box","text":"denominated and the currency in which the share price is quoted will affect the value of the convertible","page_number":346,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"33756bd6-a2b2-47af-989f-9f85423c062f","block_type":"box","text":"security. With respect to convertible securities denominated in a currency different from that of the","page_number":346,"box":{"x":116,"y":847,"width":733,"height":12}},{"id":"e0490b72-5f9c-4717-a96f-4915678c1327","block_type":"box","text":"underlying equity securities, the conversion price may be based on a fixed exchange rate established","page_number":346,"box":{"x":117,"y":862,"width":756,"height":12}},{"id":"2a0bdf2e-3294-4b58-8220-377d11610e92","block_type":"box","text":"at the time the security is issued, which may increase the effects of currency risk. As described below,","page_number":346,"box":{"x":116,"y":878,"width":763,"height":12}},{"id":"f1b64ede-e77a-4501-a06b-ce053c3f7004","block_type":"box","text":"II-7","page_number":346,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"286978cc-ab1c-4b90-8c6e-94078986b038","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":346,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0d522151-b832-43ba-b806-2a1827591293","block_type":"box","text":"a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to reduce","page_number":347,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"f0573449-140d-442c-9f4a-57c3df18a030","block_type":"box","text":"the effect of exchange rate fluctuations.","page_number":347,"box":{"x":116,"y":102,"width":298,"height":13}},{"id":"8251c369-28e2-4bdd-afc7-0a3778bd024c","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield","page_number":347,"box":{"x":116,"y":130,"width":749,"height":12}},{"id":"feb64dc2-934d-4e0f-be30-6a6d3a3f2da4","block_type":"box","text":"on nonconvertible securities of comparable issuers and by the value of the underlying common stock.","page_number":347,"box":{"x":116,"y":145,"width":757,"height":12}},{"id":"75beb5ef-1f0f-496a-975f-86ed5f922192","block_type":"box","text":"The value of a convertible security viewed without regard to its conversion feature (","page_number":347,"box":{"x":116,"y":161,"width":617,"height":12}},{"id":"caeac399-c6ae-4f35-8f9c-505ab46a32d2","block_type":"box","text":"i.e.","page_number":347,"box":{"x":734,"y":161,"width":20,"height":9}},{"id":"6558592b-783d-4c4a-9920-101a82323608","block_type":"box","text":", strictly on the","page_number":347,"box":{"x":757,"y":161,"width":112,"height":12}},{"id":"7badee5e-47d6-45d7-86be-ece4da353a00","block_type":"box","text":"basis of its yield) is sometimes referred to as its “investment value.” To the extent interest rates","page_number":347,"box":{"x":117,"y":176,"width":709,"height":12}},{"id":"792d65a5-af67-4123-808f-7c5680f157d6","block_type":"box","text":"change, the investment value of the convertible security typically will fluctuate. At the same time,","page_number":347,"box":{"x":116,"y":192,"width":720,"height":12}},{"id":"8b2d7ace-d33c-41b0-8640-d3fdbe6d41dc","block_type":"box","text":"however, the value of the convertible security will be influenced by its “conversion value,” which is the","page_number":347,"box":{"x":117,"y":207,"width":756,"height":12}},{"id":"f7a335cf-0183-47ce-a4ff-751fd868bdf1","block_type":"box","text":"market value of the underlying common stock that would be obtained if the convertible security were","page_number":347,"box":{"x":117,"y":223,"width":747,"height":12}},{"id":"cf390b78-1878-401c-aa14-f2b8860ba279","block_type":"box","text":"converted. Conversion value fluctuates directly with the price of the underlying common stock. If the","page_number":347,"box":{"x":116,"y":238,"width":746,"height":12}},{"id":"dba4b670-07d7-49b9-bce1-5c6b4cd22bb0","block_type":"box","text":"conversion value of a convertible security is substantially below its investment value, the price of the","page_number":347,"box":{"x":116,"y":254,"width":748,"height":12}},{"id":"cbb8f6c3-1c16-4cc2-ac34-358447c02b64","block_type":"box","text":"convertible security is governed principally by its investment value. To the extent the conversion value","page_number":347,"box":{"x":116,"y":269,"width":761,"height":12}},{"id":"6c1e8822-2acf-48e5-ae2b-2e80f5add4aa","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the","page_number":347,"box":{"x":116,"y":285,"width":743,"height":12}},{"id":"3c944b1d-8824-45ae-a2b0-8160efced954","block_type":"box","text":"price of the convertible security will be influenced principally by its conversion value. A convertible","page_number":347,"box":{"x":117,"y":300,"width":729,"height":12}},{"id":"d4d33543-2a8f-4d04-972b-083b69ec4731","block_type":"box","text":"security will sell at a premium over the conversion value to the extent investors place value on the right","page_number":347,"box":{"x":116,"y":316,"width":768,"height":12}},{"id":"0796d808-53b9-4ba1-ba8f-650f4159d177","block_type":"box","text":"to acquire the underlying common stock while holding a fixed-income security. The yield and","page_number":347,"box":{"x":116,"y":331,"width":691,"height":12}},{"id":"d2ef52ff-d0e8-49e8-84a2-af70d9ce9ef6","block_type":"box","text":"conversion premium of convertible securities issued in Japan and the Euromarket are frequently","page_number":347,"box":{"x":116,"y":347,"width":718,"height":12}},{"id":"55e6becc-a3a2-438f-b49c-51b8bf3364aa","block_type":"box","text":"determined at levels that cause the conversion value to affect their market value more than the","page_number":347,"box":{"x":116,"y":362,"width":708,"height":10}},{"id":"725c6b07-2e47-43b8-a0c7-97347ccc6a29","block_type":"box","text":"securities’ investment value.","page_number":347,"box":{"x":116,"y":378,"width":215,"height":9}},{"id":"efac4914-5cb6-461d-9a13-4c5e1a726733","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":347,"box":{"x":117,"y":405,"width":770,"height":12}},{"id":"32ab6a8d-77d1-4807-9d89-028a6fa89b1a","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible","page_number":347,"box":{"x":116,"y":420,"width":713,"height":12}},{"id":"08291ed0-847b-4735-8e30-f84bdb211273","block_type":"box","text":"security may be subject to redemption at the option of the issuer at a price established in a charter","page_number":347,"box":{"x":116,"y":436,"width":734,"height":12}},{"id":"bd50eab0-98a9-4e70-853b-71382c07bb98","block_type":"box","text":"provision, indenture or other governing instrument pursuant to which the convertible security was","page_number":347,"box":{"x":117,"y":451,"width":723,"height":12}},{"id":"09b4d09e-de20-43f4-a80f-60a4ad20ecf5","block_type":"box","text":"issued. If a convertible security held by a Fund is called for redemption, the Fund will be required to","page_number":347,"box":{"x":117,"y":467,"width":741,"height":12}},{"id":"a14ca6a0-1b78-4c6c-ab29-aeaba7155033","block_type":"box","text":"redeem the security, convert it into the underlying common stock or sell it to a third party. Certain","page_number":347,"box":{"x":117,"y":482,"width":723,"height":12}},{"id":"1405db78-1925-4a15-8093-11d49a8052d8","block_type":"box","text":"convertible debt securities may provide a put option to the holder, which entitles the holder to cause","page_number":347,"box":{"x":116,"y":498,"width":745,"height":12}},{"id":"0f035b4f-9061-42dc-9e50-91cd2e71a837","block_type":"box","text":"the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":347,"box":{"x":116,"y":513,"width":745,"height":12}},{"id":"fb3330ef-0592-452e-96b1-e01d9a3adfdd","block_type":"box","text":"security under certain circumstances.","page_number":347,"box":{"x":116,"y":529,"width":282,"height":12}},{"id":"73f0877e-44b2-4248-8ab7-1a322197244a","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include","page_number":347,"box":{"x":116,"y":556,"width":765,"height":12}},{"id":"f12de891-838a-4d4c-8780-3632ea5e7478","block_type":"box","text":"either Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are","page_number":347,"box":{"x":116,"y":571,"width":717,"height":10}},{"id":"e67da226-82c7-454a-8b7a-3d50b8d65e55","block_type":"box","text":"instruments that are created by the issuer and have the economic characteristics of traditional","page_number":347,"box":{"x":117,"y":587,"width":701,"height":12}},{"id":"c55b868e-a7ae-4c27-9259-be4448c352ea","block_type":"box","text":"convertible securities but may not actually permit conversion into the underlying equity securities in all","page_number":347,"box":{"x":116,"y":603,"width":760,"height":12}},{"id":"5dc728b5-cbff-41fe-8e4e-28a389ba4246","block_type":"box","text":"circumstances. As an example, a private company may issue a Cash-Settled Convertible that is","page_number":347,"box":{"x":116,"y":618,"width":715,"height":12}},{"id":"005f238c-ea9b-4766-b8d8-2800b3bd345c","block_type":"box","text":"convertible into common stock only if the company successfully completes a public offering of its","page_number":347,"box":{"x":116,"y":634,"width":721,"height":12}},{"id":"d55a822c-eb4d-4a3b-97da-656c600a3571","block_type":"box","text":"common stock prior to maturity and otherwise pays a cash amount to reflect any equity appreciation.","page_number":347,"box":{"x":116,"y":649,"width":751,"height":12}},{"id":"0da9d722-cc94-4e70-8bac-feaf854ebd93","block_type":"box","text":"“Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":347,"box":{"x":116,"y":665,"width":721,"height":12}},{"id":"ade8a46d-1d07-4987-a9c5-51d85fb1472c","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":347,"box":{"x":116,"y":680,"width":645,"height":12}},{"id":"adea7f06-947e-4a4b-a794-589b8afc1cd5","block_type":"box","text":"i.e.","page_number":347,"box":{"x":767,"y":680,"width":21,"height":10}},{"id":"e8001a31-7c3e-43c2-8568-6a48e9707d9c","block_type":"box","text":", fixed","page_number":347,"box":{"x":791,"y":680,"width":49,"height":11}},{"id":"7525065b-8e8f-491a-b688-803212786a5a","block_type":"box","text":"income (“fixed-income component”) or a right to acquire equity securities (“convertibility component”).","page_number":347,"box":{"x":117,"y":696,"width":750,"height":12}},{"id":"4ba0471f-3c63-495f-9dcd-8a3538e138d8","block_type":"box","text":"The fixed-income component is achieved by investing in nonconvertible fixed-income securities, such","page_number":347,"box":{"x":116,"y":711,"width":751,"height":12}},{"id":"d0229b9b-bbd1-4a7d-8275-2a26c63c4907","block_type":"box","text":"as nonconvertible bonds, preferred stocks and money market instruments. The convertibility","page_number":347,"box":{"x":116,"y":727,"width":684,"height":12}},{"id":"d73c5f80-f970-461f-9a61-4932190656d7","block_type":"box","text":"component is achieved by investing in call options, warrants, or other securities with equity conversion","page_number":347,"box":{"x":116,"y":742,"width":758,"height":12}},{"id":"aa889518-4002-4f14-94ed-3076d37546a0","block_type":"box","text":"features (“equity features”) granting the holder the right to purchase a specified quantity of the","page_number":347,"box":{"x":116,"y":758,"width":697,"height":12}},{"id":"4bbf8463-ef1f-41e7-aefb-f1337bce9718","block_type":"box","text":"underlying stocks within a specified period of time at a specified price or, in the case of a stock index","page_number":347,"box":{"x":117,"y":773,"width":745,"height":12}},{"id":"c0814622-2799-4983-9efd-94511fd776df","block_type":"box","text":"option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":347,"box":{"x":116,"y":789,"width":685,"height":12}},{"id":"8ed1ae0c-6407-4c6a-acab-519e2420e303","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a","page_number":347,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"405674c7-5381-4efa-bfda-c3e6c8a660d9","block_type":"box","text":"traditional convertible security, which is a single security that has a unitary market value, a","page_number":347,"box":{"x":116,"y":831,"width":674,"height":12}},{"id":"c9bdab77-5bf1-42df-90ac-87e197d45916","block_type":"box","text":"Manufactured Convertible is comprised of two or more separate securities, each with its own market","page_number":347,"box":{"x":117,"y":847,"width":747,"height":12}},{"id":"8f51b8d3-a5db-4330-81d0-e09a824aa23a","block_type":"box","text":"value. Therefore, the total “market value” of such a Manufactured Convertible is the sum of the values","page_number":347,"box":{"x":116,"y":862,"width":761,"height":11}},{"id":"98436a48-e69c-4f73-bb01-939bf8279641","block_type":"box","text":"of its fixed-income component and its convertibility component.","page_number":347,"box":{"x":116,"y":878,"width":472,"height":12}},{"id":"1ca085b3-84d5-43c8-a835-6e635e9c158e","block_type":"box","text":"II-8","page_number":347,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"808e2b05-09a1-44ef-9eee-94802a32e8c7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":347,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d7f231fe-05a5-4f2c-98cc-fdeb403839e2","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a","page_number":348,"box":{"x":117,"y":87,"width":724,"height":12}},{"id":"f5308f23-ab3a-488d-85f1-258e88dd9610","block_type":"box","text":"traditional convertible security. Because many corporations have not issued convertible securities, the","page_number":348,"box":{"x":116,"y":103,"width":761,"height":12}},{"id":"fbcd06e8-4d0a-4f59-94f2-5e5d01bc478e","block_type":"box","text":"Manager may combine a fixed-income instrument and an equity feature with respect to the stock of the","page_number":348,"box":{"x":117,"y":118,"width":767,"height":12}},{"id":"5d428cf7-4944-497c-b782-cdea31b725fb","block_type":"box","text":"issuer of the fixed-income instrument to create a synthetic convertible security otherwise unavailable in","page_number":348,"box":{"x":117,"y":134,"width":767,"height":12}},{"id":"7e26dbd0-6141-4774-bc7b-6b3aa8eb3080","block_type":"box","text":"the market. The Manager may also combine a fixed-income instrument of an issuer with an equity","page_number":348,"box":{"x":116,"y":149,"width":731,"height":12}},{"id":"e235fa41-d80c-46df-a87c-7bb4fadf60f4","block_type":"box","text":"feature with respect to the stock of a different issuer when the Manager believes such a Manufactured","page_number":348,"box":{"x":116,"y":165,"width":763,"height":12}},{"id":"d1735a0d-6c83-4312-a04d-aca1f3a8e376","block_type":"box","text":"Convertible would better promote a Fund’s objective than alternative investments. For example, the","page_number":348,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"27c66ac6-6052-4f22-bfaf-e4877cee1805","block_type":"box","text":"Manager may combine an equity feature with respect to an issuer’s stock with a fixed-income security","page_number":348,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"b509064e-095c-4baa-91dd-9b2a80422231","block_type":"box","text":"of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":348,"box":{"x":116,"y":211,"width":702,"height":12}},{"id":"20a7372f-119f-4526-bcdf-37745dd9f31d","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional","page_number":348,"box":{"x":116,"y":227,"width":762,"height":12}},{"id":"73f9e7a7-c993-4c90-85b5-0bfd4d4fd805","block_type":"box","text":"convertible security issued by that issuer. A Manufactured Convertible also is a more flexible","page_number":348,"box":{"x":116,"y":242,"width":691,"height":12}},{"id":"4ea5594d-9628-479b-acdd-2f648497b9af","block_type":"box","text":"investment in that its two components may be purchased separately and, upon purchasing the","page_number":348,"box":{"x":117,"y":258,"width":704,"height":12}},{"id":"91d5a68e-4153-4e5f-8edc-5d258c7d1dae","block_type":"box","text":"separate securities, “combined” to create a Manufactured Convertible. For example, the Fund may","page_number":348,"box":{"x":116,"y":273,"width":736,"height":12}},{"id":"20b24bde-521a-49ed-8f7b-5b9967e12226","block_type":"box","text":"purchase a warrant for eventual inclusion in a Manufactured Convertible while postponing the","page_number":348,"box":{"x":117,"y":289,"width":697,"height":12}},{"id":"975a5103-57fc-4d17-be31-25bf2f8c1fde","block_type":"box","text":"purchase of a suitable bond to pair with the warrant pending development of more favorable market","page_number":348,"box":{"x":117,"y":304,"width":743,"height":12}},{"id":"933403c7-eeff-45cb-8309-da9e718e4ab0","block_type":"box","text":"conditions.","page_number":348,"box":{"x":116,"y":320,"width":85,"height":9}},{"id":"33e1e4ff-03fe-46a0-ab67-ebb800655b94","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a","page_number":348,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"d68a1c2b-b513-40c8-8030-e5bad10b44ff","block_type":"box","text":"traditional convertible security with similar characteristics. For example, in the event a Fund created a","page_number":348,"box":{"x":116,"y":366,"width":758,"height":12}},{"id":"740f863d-17ce-43fe-9e3b-f4dc660f0313","block_type":"box","text":"Manufactured Convertible by combining a short-term U.S. Treasury instrument and a call option on a","page_number":348,"box":{"x":117,"y":382,"width":752,"height":12}},{"id":"a9934d21-3f35-4599-bdd7-df29ff51e000","block_type":"box","text":"stock, the Manufactured Convertible would be expected to outperform a traditional convertible of","page_number":348,"box":{"x":116,"y":397,"width":720,"height":12}},{"id":"39ac66d5-024f-48c0-a13c-85a1244d5aa5","block_type":"box","text":"similar maturity that is convertible into that stock during periods when Treasury instruments outperform","page_number":348,"box":{"x":116,"y":413,"width":767,"height":12}},{"id":"340a856b-bd4b-44ff-b290-394b9a6e0bc6","block_type":"box","text":"corporate fixed-income securities and underperform during periods when corporate fixed-income","page_number":348,"box":{"x":116,"y":428,"width":722,"height":12}},{"id":"eed48323-43ea-487e-bc38-c174d6f08394","block_type":"box","text":"securities outperform Treasury instruments.","page_number":348,"box":{"x":116,"y":444,"width":329,"height":12}},{"id":"976d4b9c-08b1-474e-bfb0-93e2f85b2fbb","block_type":"box","text":"Corporate Loans.","page_number":348,"box":{"x":117,"y":475,"width":137,"height":12}},{"id":"1c3fe7b4-7ada-4d12-aae1-ef1ab7b1779d","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally","page_number":348,"box":{"x":255,"y":475,"width":570,"height":12}},{"id":"52e3da2d-44d2-49c5-93a8-8eb397b9d3df","block_type":"box","text":"non-investment grade floating rate instruments. Usually, they are freely callable at the issuer’s option.","page_number":348,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"cdb619c3-1db5-4cab-951f-78a63fe1b078","block_type":"box","text":"Certain Funds may invest in fixed and floating rate loans (“Loans”) arranged through private","page_number":348,"box":{"x":117,"y":506,"width":685,"height":12}},{"id":"86bb5145-2b95-4983-8fd4-42b11b5a8992","block_type":"box","text":"negotiations between a corporate borrower or a foreign sovereign entity and one or more financial","page_number":348,"box":{"x":117,"y":521,"width":730,"height":12}},{"id":"06bfd408-0854-4e2e-9956-181516aa8b4f","block_type":"box","text":"institutions or institutional investors (“Lenders”). A Fund may invest in such Loans in the form of","page_number":348,"box":{"x":117,"y":537,"width":712,"height":12}},{"id":"abd90dd4-3d19-44f7-b5e2-11c88a72242a","block_type":"box","text":"participations in Loans (“Participations”) and assignments of all or a portion of Loans from third parties","page_number":348,"box":{"x":117,"y":552,"width":761,"height":12}},{"id":"22557597-0cc4-4199-930a-2b22f11709c0","block_type":"box","text":"(“Assignments”). A Fund considers these investments to be investments in debt securities for purposes","page_number":348,"box":{"x":117,"y":568,"width":769,"height":12}},{"id":"bfeae9af-fa77-43f7-9992-9795b19a2a10","block_type":"box","text":"of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":348,"box":{"x":116,"y":583,"width":770,"height":12}},{"id":"54cf1989-3f0f-4be6-b3de-5413d6df3578","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of","page_number":348,"box":{"x":116,"y":599,"width":712,"height":12}},{"id":"bde3188f-4298-4ef4-8847-a1d4f35f2b23","block_type":"box","text":"principal, interest and any fees to which it is entitled only from the Lender selling the Participation and","page_number":348,"box":{"x":117,"y":614,"width":756,"height":12}},{"id":"30d3d938-476a-4387-90fb-eab3f4b280b7","block_type":"box","text":"only upon receipt by the Lender of the payments from the borrower. In connection with purchasing","page_number":348,"box":{"x":116,"y":630,"width":734,"height":12}},{"id":"e293d518-b5c5-48f6-b163-580e1a8ecc21","block_type":"box","text":"Participations, the Fund generally will have no right to enforce compliance by the borrower with the","page_number":348,"box":{"x":117,"y":645,"width":737,"height":12}},{"id":"59363193-4242-4a4c-8041-f0b6c1b20ea4","block_type":"box","text":"terms of the loan agreement relating to the Loans, nor any rights of set-off against the borrower, and","page_number":348,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"6a202056-565b-4114-9a8b-07adc5a19228","block_type":"box","text":"the Fund may not benefit directly from any collateral supporting the Loan in which it has purchased the","page_number":348,"box":{"x":116,"y":676,"width":761,"height":12}},{"id":"c577739f-7c22-4019-9380-4c757f286ec5","block_type":"box","text":"Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender that","page_number":348,"box":{"x":117,"y":692,"width":758,"height":12}},{"id":"ca29753d-9e7c-45b1-8ba2-1436ad8a4ffe","block_type":"box","text":"is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the","page_number":348,"box":{"x":117,"y":707,"width":730,"height":12}},{"id":"ae87d8c9-3ed6-4c5d-af3e-0564bfd8a402","block_type":"box","text":"Fund may be treated as a general creditor of the Lender and may not benefit from any set-off between","page_number":348,"box":{"x":117,"y":723,"width":758,"height":12}},{"id":"a2ed9fb2-3db2-407b-a5ed-708595867703","block_type":"box","text":"the Lender and the borrower. The Fund will acquire Participations only if the Lender interpositioned","page_number":348,"box":{"x":116,"y":738,"width":734,"height":12}},{"id":"979da610-2df3-4dc2-9e7e-47cede8e3424","block_type":"box","text":"between the Fund and the borrower is determined by the Fund’s manager to be creditworthy. When","page_number":348,"box":{"x":117,"y":754,"width":738,"height":12}},{"id":"72dd5a47-8e51-4b41-930f-32d2e29ff1b7","block_type":"box","text":"the Fund purchases Assignments from Lenders, the Fund will acquire direct rights against the borrower","page_number":348,"box":{"x":116,"y":769,"width":767,"height":12}},{"id":"f5520b4e-5856-4b41-a047-0575de62f87c","block_type":"box","text":"on the Loan, and will not have exposure to a counterparty’s credit risk. The Funds may enter into","page_number":348,"box":{"x":116,"y":785,"width":718,"height":12}},{"id":"34b6ea15-2c81-4081-8256-3d7a182dc74a","block_type":"box","text":"Participations and Assignments on a forward commitment or “when-issued” basis, whereby a Fund","page_number":348,"box":{"x":117,"y":800,"width":731,"height":12}},{"id":"652cf533-3665-4416-8c89-119179e9c3db","block_type":"box","text":"would agree to purchase a Participation or Assignment at set terms in the future. For more information","page_number":348,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"b1a82d32-2787-4c82-b641-ce518aaedf48","block_type":"box","text":"on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":348,"box":{"x":116,"y":831,"width":757,"height":12}},{"id":"1cf5f1bc-080e-41cc-af86-e71eb24a36b8","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":348,"box":{"x":116,"y":847,"width":345,"height":9}},{"id":"ea94d34a-e38e-4f2c-8754-d141cc2541c2","block_type":"box","text":"II-9","page_number":348,"box":{"x":489,"y":909,"width":22,"height":9}},{"id":"68142708-c2fe-47de-ae53-abf46b065e35","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":348,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1c9823ec-407a-4b30-8f71-3edf3c57c88d","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market","page_number":349,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"cbaa6474-6766-41c3-8dde-53782da549b8","block_type":"box","text":"for such instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases","page_number":349,"box":{"x":116,"y":102,"width":764,"height":13}},{"id":"8acd04e0-7f54-45c5-8070-caaa0a03720a","block_type":"box","text":"such instruments could be sold only to a limited number of institutional investors. The lack of a","page_number":349,"box":{"x":116,"y":118,"width":704,"height":12}},{"id":"0a73486d-c0e7-499c-be1b-490bced63317","block_type":"box","text":"sufficiently liquid secondary market may have an adverse impact on the value of such instruments and","page_number":349,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"346a7730-1c12-4a9e-a85f-d32a6e8d7338","block_type":"box","text":"on the Fund’s ability to dispose of particular Assignments or Participations in response to a specific","page_number":349,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"6bf0408c-0a25-4d23-af4b-dfd14a385b59","block_type":"box","text":"economic event, such as deterioration in the creditworthiness of the borrower.","page_number":349,"box":{"x":116,"y":165,"width":583,"height":11}},{"id":"75359e32-0129-4b1b-b27a-a0b92eb3c8ea","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as","page_number":349,"box":{"x":117,"y":193,"width":768,"height":12}},{"id":"52b62d8a-4739-426e-b950-fccf540776e8","block_type":"box","text":"a syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of","page_number":349,"box":{"x":116,"y":209,"width":720,"height":12}},{"id":"996dde1b-94bb-41fc-b1be-bb615291f238","block_type":"box","text":"principal and interest. Failure by the syndicate agent to fulfill its obligations may delay or adversely","page_number":349,"box":{"x":117,"y":224,"width":734,"height":12}},{"id":"33f889e6-fa92-4071-87f6-10395fef777c","block_type":"box","text":"affect receipt of payment by the Fund.","page_number":349,"box":{"x":116,"y":240,"width":287,"height":12}},{"id":"d374d6c5-1dc1-4458-8efd-746269c12317","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income.","page_number":349,"box":{"x":116,"y":269,"width":706,"height":12}},{"id":"27a2dbc0-5abf-4a8a-9ed9-7fc9cddb5159","block_type":"box","text":"Although borrowers frequently provide collateral to secure repayment of these obligations they do not","page_number":349,"box":{"x":116,"y":284,"width":757,"height":12}},{"id":"f8798a82-d116-4cd2-ad22-f1be69745bfa","block_type":"box","text":"always do so. If they do provide collateral, the value of the collateral may not completely cover the","page_number":349,"box":{"x":116,"y":300,"width":732,"height":12}},{"id":"dd067cfd-7a47-4ff0-981b-b8a7c78e67fc","block_type":"box","text":"borrower’s obligations at the time of a default. If a borrower files for protection from its creditors under","page_number":349,"box":{"x":117,"y":315,"width":757,"height":12}},{"id":"14c0c71a-1e7d-40f5-bd1d-b33aa858aaf3","block_type":"box","text":"the U.S. bankruptcy laws, these laws may limit a Fund’s rights to its collateral. In addition, the value of","page_number":349,"box":{"x":116,"y":331,"width":761,"height":12}},{"id":"fc9bd1d3-2efb-4776-9dc2-084192d69a6f","block_type":"box","text":"collateral may erode during a bankruptcy case. In the event of a bankruptcy, the holder of a Loan may","page_number":349,"box":{"x":116,"y":346,"width":762,"height":12}},{"id":"bac2e153-aab7-431c-97bf-2064e49e6eef","block_type":"box","text":"not recover its principal, may experience a long delay in recovering its investment and may not receive","page_number":349,"box":{"x":117,"y":362,"width":765,"height":12}},{"id":"ad264471-58e1-4a16-93d9-1cf7b774dc95","block_type":"box","text":"interest during the delay.","page_number":349,"box":{"x":117,"y":377,"width":188,"height":12}},{"id":"d68c2b8a-3ea8-4693-92c6-b1c6c9035726","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale","page_number":349,"box":{"x":116,"y":406,"width":763,"height":12}},{"id":"efd3a0b1-ba52-4cbe-bb94-9a31af40b175","block_type":"box","text":"of corporate loans may not be readily available to make additional investments or to meet a Fund’s","page_number":349,"box":{"x":116,"y":421,"width":738,"height":12}},{"id":"02279acf-a0e0-457c-be91-41271dc19a35","block_type":"box","text":"redemption obligations. To the extent the extended settlement process gives rise to short-term liquidity","page_number":349,"box":{"x":117,"y":437,"width":765,"height":12}},{"id":"96c4b6dd-b3e7-4f8b-a42f-085f514578fb","block_type":"box","text":"needs, a Fund may hold additional cash, sell investments or temporarily borrow from banks and other","page_number":349,"box":{"x":117,"y":452,"width":758,"height":12}},{"id":"f1ba70bf-a307-4d03-801e-6a24f620fae8","block_type":"box","text":"lenders.","page_number":349,"box":{"x":117,"y":468,"width":63,"height":9}},{"id":"2a0bce83-cd06-49d2-9235-ea6e193e8970","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities","page_number":349,"box":{"x":117,"y":497,"width":746,"height":12}},{"id":"00b31ff4-4e12-4317-979f-dc0082f8e3fd","block_type":"box","text":"laws. Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and","page_number":349,"box":{"x":117,"y":512,"width":758,"height":12}},{"id":"8df08b55-5d84-4ef9-90da-17840020aa5c","block_type":"box","text":"purchasers of interests in Loans, such as the Funds, may not have the protection of the anti-fraud","page_number":349,"box":{"x":117,"y":528,"width":729,"height":12}},{"id":"0998f339-0808-4c5f-9f83-1e2e33abe4a0","block_type":"box","text":"provisions of the federal securities laws as would otherwise be available for bonds or stocks. Instead,","page_number":349,"box":{"x":117,"y":543,"width":755,"height":12}},{"id":"7618bfdd-e3ba-4fc8-8eef-c8cf56f25742","block_type":"box","text":"in such cases, parties generally would rely on the contractual provisions in the Loan agreement itself","page_number":349,"box":{"x":117,"y":559,"width":750,"height":12}},{"id":"79362b80-aded-41de-8c19-eae05665596d","block_type":"box","text":"and common-law fraud protections under applicable state law.","page_number":349,"box":{"x":116,"y":574,"width":467,"height":12}},{"id":"8b3e96e2-304c-4c34-9f94-f8c67eb91c46","block_type":"box","text":"Direct Lending.","page_number":349,"box":{"x":116,"y":603,"width":111,"height":12}},{"id":"00db6b26-1c6a-4588-932c-dcc099f4f7f8","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct","page_number":349,"box":{"x":229,"y":603,"width":655,"height":12}},{"id":"4164ac6e-061d-45b6-ab1e-70b00fa7ad00","block_type":"box","text":"loans between the Fund and a borrower may not be administered by an underwriter or agent bank. The","page_number":349,"box":{"x":117,"y":618,"width":771,"height":12}},{"id":"f5e1bf7f-7521-49a8-8a9c-35b7ea8fd270","block_type":"box","text":"Fund may provide financing to commercial borrowers directly or through companies acquired (or","page_number":349,"box":{"x":117,"y":634,"width":719,"height":12}},{"id":"79f3461c-19ad-44d6-a4a6-a7f4ab45f962","block_type":"box","text":"created) and owned by or otherwise affiliated with the Fund. The terms of the direct loans are","page_number":349,"box":{"x":116,"y":649,"width":697,"height":12}},{"id":"dc2cc46c-e36e-4367-bd04-adf81f03d8e6","block_type":"box","text":"negotiated with borrowers in private transactions. Furthermore, a direct loan may be secured or","page_number":349,"box":{"x":117,"y":665,"width":707,"height":12}},{"id":"3cf365af-dfcc-423b-b8eb-034b4fe6532b","block_type":"box","text":"unsecured.","page_number":349,"box":{"x":117,"y":680,"width":80,"height":10}},{"id":"7b1e91ac-6cb1-420c-873c-5ca22920f107","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of","page_number":349,"box":{"x":117,"y":709,"width":751,"height":12}},{"id":"374d8430-37a3-4595-9f11-227465d568ef","block_type":"box","text":"the borrower and/or any collateral for payment of interest and repayment of principal. The risks","page_number":349,"box":{"x":116,"y":725,"width":703,"height":12}},{"id":"b76a0e18-6492-4eeb-8360-4209dc817d7f","block_type":"box","text":"associated with direct loans are substantially similar to those associated with investing in corporate","page_number":349,"box":{"x":116,"y":740,"width":733,"height":12}},{"id":"5128e0b6-fdac-453a-beed-4336d2370ac1","block_type":"box","text":"loans. In making a direct loan, the Fund is exposed to the risk that the borrower may default or become","page_number":349,"box":{"x":117,"y":756,"width":764,"height":12}},{"id":"a6d6df25-bded-487f-b0f5-88334dda6155","block_type":"box","text":"insolvent and, consequently, that the Fund will lose money on the loan. Furthermore, direct loans may","page_number":349,"box":{"x":117,"y":771,"width":755,"height":12}},{"id":"cd64270e-2ee6-4338-bee3-df1cdd2f04f8","block_type":"box","text":"subject the Fund to liquidity and interest rate risk and certain direct loans may be deemed illiquid.","page_number":349,"box":{"x":116,"y":787,"width":720,"height":12}},{"id":"010737ec-19df-4de8-b966-305a5a3690cb","block_type":"box","text":"Direct loans are not publicly traded and may not have a secondary market. The lack of a secondary","page_number":349,"box":{"x":117,"y":802,"width":737,"height":12}},{"id":"b7a8c186-3b15-4a7b-85a2-f0742f0ad954","block_type":"box","text":"market for direct loans may have an adverse impact on the ability of the Fund to dispose of a direct","page_number":349,"box":{"x":117,"y":818,"width":734,"height":12}},{"id":"677504fe-782c-4ed3-af6b-3261aeb33de5","block_type":"box","text":"loan and/or to value the direct loan.","page_number":349,"box":{"x":117,"y":833,"width":266,"height":10}},{"id":"c957d977-2675-4746-ba43-fdb150a2e143","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the","page_number":349,"box":{"x":116,"y":862,"width":736,"height":12}},{"id":"f99f0272-7dbb-45e4-9321-81af8e2f9050","block_type":"box","text":"Fund to originate loans on advantageous terms. In originating loans, the Fund will compete with a","page_number":349,"box":{"x":117,"y":878,"width":727,"height":11}},{"id":"3cf52dc1-c89a-416a-8442-609cdf96abb5","block_type":"box","text":"II-10","page_number":349,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"cb28192c-0cf0-42e5-af74-6b017e0585e6","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":349,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b87c4406-8f53-42db-8ff2-2077e824d04f","block_type":"box","text":"broad spectrum of lenders. Increased competition for, or a diminishment in the available supply of,","page_number":350,"box":{"x":117,"y":87,"width":733,"height":12}},{"id":"7a61c230-a7d8-467f-8e6a-a215a413ff88","block_type":"box","text":"qualifying loans could result in lower yields on such loans, which could reduce Fund performance.","page_number":350,"box":{"x":116,"y":102,"width":730,"height":13}},{"id":"0093099a-6655-49fd-a01a-3c4b88698e3f","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing","page_number":350,"box":{"x":116,"y":134,"width":719,"height":12}},{"id":"e9be8faf-e5e7-48e6-bbd8-d951fad6265f","block_type":"box","text":"significant financial or business difficulties, including companies involved in bankruptcy or other","page_number":350,"box":{"x":116,"y":149,"width":710,"height":12}},{"id":"0fb00386-9995-4e89-b2e0-0714e7a7acc0","block_type":"box","text":"reorganization and liquidation proceedings. Although the terms of such financing may result in","page_number":350,"box":{"x":117,"y":165,"width":701,"height":12}},{"id":"67f5565f-fa5d-4596-a07e-2836973345d2","block_type":"box","text":"significant financial returns to the Fund, they involve a substantial degree of risk. The level of analytical","page_number":350,"box":{"x":116,"y":180,"width":768,"height":12}},{"id":"e86a3c9b-379b-408c-bdc9-d81045349efd","block_type":"box","text":"sophistication, both financial and legal, necessary for successful financing to companies experiencing","page_number":350,"box":{"x":116,"y":196,"width":758,"height":12}},{"id":"76d8cb1d-1119-4997-a98d-1c8e77e8c74b","block_type":"box","text":"significant business and financial difficulties is unusually high.","page_number":350,"box":{"x":116,"y":211,"width":461,"height":12}},{"id":"13636f30-073a-4387-b509-e8d098240724","block_type":"box","text":"Credit Linked Securities.","page_number":350,"box":{"x":117,"y":242,"width":195,"height":10}},{"id":"4759d655-8f0f-4294-81d7-44ef64c5eee3","block_type":"box","text":"Among the income producing securities in which a Fund may invest are","page_number":350,"box":{"x":313,"y":242,"width":541,"height":12}},{"id":"4118a98d-d43e-4580-b6f3-ee682f548800","block_type":"box","text":"credit linked securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests","page_number":350,"box":{"x":116,"y":258,"width":768,"height":12}},{"id":"c666902a-8c58-4550-bef0-5efb0c3c8408","block_type":"box","text":"in a derivative instrument or basket of derivative instruments, such as credit default swaps, interest rate","page_number":350,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"d1236c88-cb52-4689-bdb9-6cae5883930f","block_type":"box","text":"swaps and other securities, in order to provide exposure to certain fixed-income markets. For instance,","page_number":350,"box":{"x":116,"y":289,"width":768,"height":12}},{"id":"36206c6c-c9a2-439f-ac99-4eb730fda0f5","block_type":"box","text":"a Fund may invest in credit linked securities as a cash management tool in order to gain exposure to a","page_number":350,"box":{"x":116,"y":304,"width":765,"height":12}},{"id":"9470d6f2-9cfe-4e44-b9db-812eeac6c68b","block_type":"box","text":"certain market and/or to remain fully invested when more traditional income producing securities are","page_number":350,"box":{"x":116,"y":320,"width":748,"height":12}},{"id":"b5a588ac-69ad-4155-ae92-716106b004c9","block_type":"box","text":"not available.","page_number":350,"box":{"x":117,"y":335,"width":103,"height":10}},{"id":"ce73f7c5-0bbe-424b-a3e4-f33136d2b512","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive","page_number":350,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"b795b9fe-3ade-4e20-9de7-70f0492eacbe","block_type":"box","text":"periodic income payments (in the form of distributions) and payment of principal at the end of the term","page_number":350,"box":{"x":117,"y":382,"width":761,"height":12}},{"id":"cc55dbfd-099e-420c-835f-c3d3afe573c0","block_type":"box","text":"of the security.","page_number":350,"box":{"x":116,"y":397,"width":114,"height":12}},{"id":"ad2f725e-f8f6-477a-ba06-1b825930ed30","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s","page_number":350,"box":{"x":117,"y":428,"width":748,"height":12}},{"id":"d66607ab-f0ee-40b8-bae8-9230327bdf59","block_type":"box","text":"potential obligations to, the counterparties to the derivative instruments and other securities in which","page_number":350,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"60ff2690-a1c0-4e06-89ed-75c4a7b5c22f","block_type":"box","text":"the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the","page_number":350,"box":{"x":116,"y":459,"width":762,"height":12}},{"id":"da23e6cf-01b1-4e82-bb49-745664b07226","block_type":"box","text":"issuer would receive a stream of payments over the term of the swap agreements provided that no","page_number":350,"box":{"x":117,"y":475,"width":736,"height":12}},{"id":"11aec615-b7bc-4414-9a81-a5008e9721e6","block_type":"box","text":"event of default has occurred with respect to the referenced debt obligation upon which the swap is","page_number":350,"box":{"x":116,"y":490,"width":741,"height":12}},{"id":"12b3390e-570e-4920-8b8b-adedc006194a","block_type":"box","text":"based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay","page_number":350,"box":{"x":117,"y":506,"width":756,"height":12}},{"id":"b45ad76c-87b4-4f4b-b5fc-9f089fa1beaf","block_type":"box","text":"the counterparty the par (or other agreed upon value) of the referenced debt obligation. This, in turn,","page_number":350,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"adca15e9-f7fd-4202-ba43-18366a5529ef","block_type":"box","text":"would reduce the amount of income and principal that","page_number":350,"box":{"x":116,"y":537,"width":404,"height":12}},{"id":"06c674df-8d44-4c2d-95ef-26a342bf765e","block_type":"box","text":"a Fund would receive. A Fund’s investments in","page_number":350,"box":{"x":521,"y":537,"width":351,"height":9}},{"id":"32064709-a76c-4eb1-8ff5-54501fa51581","block_type":"box","text":"these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":350,"box":{"x":116,"y":552,"width":750,"height":12}},{"id":"f410e55f-ee90-42a1-bd5d-1662775e2793","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk","page_number":350,"box":{"x":116,"y":568,"width":766,"height":12}},{"id":"082ead27-dfef-4a1c-b15c-a069b186d91c","block_type":"box","text":"and management risk. It is also expected that the securities will be exempt from registration under the","page_number":350,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"bcf3e936-7583-4c4a-a701-9a3024817490","block_type":"box","text":"Securities Act. Accordingly, there may be no established trading market for the securities and they may","page_number":350,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"34fe9212-7c0a-433d-bf2d-3f517711e563","block_type":"box","text":"constitute illiquid investments.","page_number":350,"box":{"x":116,"y":614,"width":227,"height":12}},{"id":"3e6b9b07-f6fc-4d18-a1c9-4ba5ee2d7bb4","block_type":"box","text":"Debt Securities.","page_number":350,"box":{"x":116,"y":645,"width":126,"height":10}},{"id":"df1bcdb0-1643-45c9-b35b-7d8789161bc8","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will","page_number":350,"box":{"x":243,"y":645,"width":633,"height":11}},{"id":"9eb8f9e9-d668-4ee7-b960-f33705061440","block_type":"box","text":"not make timely payments of principal and interest. The degree of credit risk depends on the issuer’s","page_number":350,"box":{"x":117,"y":661,"width":746,"height":12}},{"id":"2b21f2ec-c3ef-4c3f-9285-2c25367d1051","block_type":"box","text":"financial condition and on the terms of the debt securities. Changes in an issuer’s credit rating or the","page_number":350,"box":{"x":116,"y":676,"width":744,"height":12}},{"id":"fd3eff51-6180-4044-b041-e42fd9c090b2","block_type":"box","text":"market’s perception of an issuer’s creditworthiness may also affect the value of a Fund’s investment in","page_number":350,"box":{"x":117,"y":692,"width":757,"height":12}},{"id":"0cbad0e8-e824-4fd5-ba3b-e5d1dae7fca0","block_type":"box","text":"that issuer. Credit risk is reduced to the extent a Fund limits its debt investments to U.S. Government","page_number":350,"box":{"x":116,"y":707,"width":749,"height":10}},{"id":"15152867-e7bf-4671-89b6-7c8573847efe","block_type":"box","text":"Securities.","page_number":350,"box":{"x":116,"y":723,"width":77,"height":9}},{"id":"6fd1e20e-0da2-4c76-ac47-b3ee0380082a","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the","page_number":350,"box":{"x":116,"y":754,"width":709,"height":12}},{"id":"b7f804cb-e5ef-4e1f-94cf-a1c3343fc329","block_type":"box","text":"security may fall when interest rates rise. If interest rates move sharply in a manner not anticipated by","page_number":350,"box":{"x":116,"y":769,"width":755,"height":12}},{"id":"d80614f1-57c7-482f-99a1-1e456908c4db","block_type":"box","text":"Fund management, a Fund’s investments in debt securities could be adversely affected and the Fund","page_number":350,"box":{"x":117,"y":785,"width":752,"height":12}},{"id":"37197c49-bcfe-43d2-b1df-ce338b5dc1d2","block_type":"box","text":"could lose money. In general, the market price of debt securities with longer maturities will go up or","page_number":350,"box":{"x":116,"y":800,"width":735,"height":12}},{"id":"bc17acde-d3b9-49c5-9ab7-670f2075098d","block_type":"box","text":"down more in response to changes in interest rates than will the market price of shorter-term debt","page_number":350,"box":{"x":116,"y":816,"width":725,"height":12}},{"id":"7bc62f34-70e9-4011-91b9-5d899cac31ab","block_type":"box","text":"securities.","page_number":350,"box":{"x":116,"y":831,"width":80,"height":10}},{"id":"bc8791e9-37f8-47ea-8923-43032157d5f7","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended","page_number":350,"box":{"x":117,"y":862,"width":744,"height":12}},{"id":"80c9bd01-e2a0-46af-8a66-0e64ce0a32b4","block_type":"box","text":"because of slower than expected principal payments. This may lock in a below-market interest rate and","page_number":350,"box":{"x":117,"y":878,"width":771,"height":12}},{"id":"76d8a31f-d2f5-443e-9acf-dc9861f0fb74","block_type":"box","text":"II-11","page_number":350,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"17b97614-72aa-40e8-b318-cbdacad359ae","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":350,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"48c3783a-9ecd-4e70-8c28-46bb31038add","block_type":"box","text":"extend the duration of these fixed-income securities, especially mortgage-related securities, making","page_number":351,"box":{"x":116,"y":87,"width":744,"height":12}},{"id":"70c36bb0-8aad-4cf8-baf1-d7d1f4590d98","block_type":"box","text":"them more sensitive to changes in interest rates. As a result, in a period of rising interest rates, these","page_number":351,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"d9d167e6-6122-4a4a-9d66-6669067faff3","block_type":"box","text":"securities may exhibit additional volatility and lose value. This is known as extension risk.","page_number":351,"box":{"x":116,"y":118,"width":665,"height":12}},{"id":"b2550851-4843-463e-b7e3-9c4d5dc8a9a6","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in","page_number":351,"box":{"x":116,"y":146,"width":745,"height":12}},{"id":"458c3c85-2b16-4588-a9da-e913207ff806","block_type":"box","text":"prevailing interest rates. Fixed-income securities with longer maturities, which tend to produce higher","page_number":351,"box":{"x":117,"y":162,"width":753,"height":12}},{"id":"cec1dc6e-65de-42d1-ae65-a119572a13f5","block_type":"box","text":"yields, are subject to potentially greater capital appreciation and depreciation than securities with","page_number":351,"box":{"x":116,"y":178,"width":723,"height":11}},{"id":"cddb2f00-c9d4-42cf-9c58-079e0dd2bdb2","block_type":"box","text":"shorter maturities. The Funds are not restricted to any maximum or minimum time to maturity in","page_number":351,"box":{"x":116,"y":193,"width":714,"height":12}},{"id":"e4c5a548-8f0c-4cd4-915e-29b850e1cd61","block_type":"box","text":"purchasing individual portfolio securities, and the average maturity of a Fund’s assets will vary.","page_number":351,"box":{"x":117,"y":208,"width":707,"height":12}},{"id":"cec07d4c-23c3-4d58-8692-28d25e4629f9","block_type":"box","text":"Floating and Variable Rate Securities","page_number":351,"box":{"x":116,"y":237,"width":277,"height":12}},{"id":"1867e8fa-8914-4820-87a4-7309be4822d4","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable","page_number":351,"box":{"x":395,"y":237,"width":493,"height":12}},{"id":"77dca22d-df54-4df0-a0af-ecfa1cb82671","block_type":"box","text":"coupon rate. Securities with floating or variable interest rates can be less sensitive to interest rate","page_number":351,"box":{"x":116,"y":252,"width":728,"height":12}},{"id":"8917d57d-66cc-42ff-8fc1-ac4a2a52f6a0","block_type":"box","text":"changes than securities with fixed interest rates, but may decline in value if their interest rates do not","page_number":351,"box":{"x":116,"y":268,"width":752,"height":12}},{"id":"5158725a-4a99-460d-90b4-4aeeef67a0be","block_type":"box","text":"rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not","page_number":351,"box":{"x":117,"y":283,"width":732,"height":12}},{"id":"c9b1315b-72af-4579-bfc0-c2e489479ed0","block_type":"box","text":"generally increase in value if interest rates decline. The","page_number":351,"box":{"x":116,"y":299,"width":415,"height":12}},{"id":"c93325c3-bab9-4932-b85c-d1e77e8a4467","block_type":"box","text":"impact of interest rate changes on floating rate","page_number":351,"box":{"x":532,"y":299,"width":350,"height":12}},{"id":"dd7fa2e3-bd9e-427d-aab0-d2f4ee84d939","block_type":"box","text":"investments is typically mitigated by the periodic interest rate reset of the investments. Benchmark","page_number":351,"box":{"x":117,"y":314,"width":733,"height":12}},{"id":"93fcdb8c-c382-4c1e-9cfe-0c57e494ae4d","block_type":"box","text":"interest rates used for floating and variable rate securities may not accurately track market interest","page_number":351,"box":{"x":117,"y":330,"width":734,"height":12}},{"id":"0a748337-ad67-4183-946b-b1933257fb4c","block_type":"box","text":"rates.","page_number":351,"box":{"x":117,"y":346,"width":45,"height":9}},{"id":"75cacf1d-97a9-438c-8195-9bb39a162c25","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":351,"box":{"x":117,"y":374,"width":179,"height":9}},{"id":"9ab222de-a820-47af-8803-934e9551e50f","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income","page_number":351,"box":{"x":297,"y":374,"width":577,"height":12}},{"id":"08d07b32-01f9-4752-a0e9-8d4d74787ff8","block_type":"box","text":"securities or other instruments whose principal value is periodically adjusted according to the rate of","page_number":351,"box":{"x":116,"y":389,"width":746,"height":12}},{"id":"be2eabe3-2f99-4f94-8b1e-63c998cdfc54","block_type":"box","text":"inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that","page_number":351,"box":{"x":117,"y":405,"width":755,"height":12}},{"id":"4a34aabb-842d-4db5-8c71-fd0253408865","block_type":"box","text":"accrues inflation into the principal value of the bond. Most other issuers pay out the Consumer Price","page_number":351,"box":{"x":116,"y":420,"width":747,"height":12}},{"id":"bfa7efb2-7e88-4780-bbf0-b5196be79d7e","block_type":"box","text":"Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":351,"box":{"x":117,"y":436,"width":417,"height":12}},{"id":"311f3571-aae9-4710-8bd8-b61a1e39569c","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years,","page_number":351,"box":{"x":117,"y":464,"width":728,"height":12}},{"id":"3729efdf-4007-430b-a94e-06cddf1882b6","block_type":"box","text":"although it is possible that securities with other maturities will be issued in the future. The U.S.","page_number":351,"box":{"x":116,"y":480,"width":703,"height":12}},{"id":"bc3c2948-a542-4f16-a095-93b25c74a14a","block_type":"box","text":"Treasury securities pay interest on a semi-annual basis, equal to a fixed percentage of the inflation","page_number":351,"box":{"x":116,"y":495,"width":738,"height":12}},{"id":"005222a2-383e-4315-90e7-c5cb9b6e77f1","block_type":"box","text":"adjusted principal amount. For example, if a Fund purchased an inflation-indexed bond with a par","page_number":351,"box":{"x":116,"y":511,"width":727,"height":12}},{"id":"79d7a5b2-adf1-41bf-814d-a0d0e6691c66","block_type":"box","text":"value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and inflation over","page_number":351,"box":{"x":116,"y":525,"width":753,"height":13}},{"id":"177fb5c3-f6e8-4a76-8a4d-a36fd20767b1","block_type":"box","text":"the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first semi","page_number":351,"box":{"x":116,"y":541,"width":736,"height":13}},{"id":"ed9ec5a7-3ddf-42bf-bc24-8fb7d529d43f","block_type":"box","text":"annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the","page_number":351,"box":{"x":116,"y":556,"width":766,"height":13}},{"id":"0ae87cd1-fa17-4dee-b912-c5630b7c3f6d","block_type":"box","text":"year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be","page_number":351,"box":{"x":116,"y":573,"width":764,"height":12}},{"id":"d91bd191-300e-4c3a-8335-21627a4c9fd5","block_type":"box","text":"$1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":351,"box":{"x":116,"y":587,"width":689,"height":13}},{"id":"5d44b21f-79da-4ca4-a032-4140d7661f2b","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds","page_number":351,"box":{"x":117,"y":616,"width":747,"height":12}},{"id":"91a41842-18c7-469a-b30e-93007ab1227f","block_type":"box","text":"will be adjusted downward, and, consequently, the interest payable on these securities (calculated with","page_number":351,"box":{"x":116,"y":632,"width":769,"height":12}},{"id":"14854bf0-31a3-4e26-853e-b16a70f89756","block_type":"box","text":"respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon","page_number":351,"box":{"x":117,"y":647,"width":754,"height":13}},{"id":"25af1220-8f8d-4845-83dc-fdefa3bf31bd","block_type":"box","text":"maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds,","page_number":351,"box":{"x":117,"y":663,"width":749,"height":12}},{"id":"2ec7a37c-5936-467b-adb6-4499409f3650","block_type":"box","text":"even during a period of deflation. However, the current market value of the bonds is not guaranteed,","page_number":351,"box":{"x":116,"y":678,"width":742,"height":13}},{"id":"78b31b4e-259f-41cd-9e63-f644aa4cb3e7","block_type":"box","text":"and will fluctuate. Certain Funds may also invest in other inflation related bonds which may or may not","page_number":351,"box":{"x":116,"y":694,"width":758,"height":12}},{"id":"e4d10a1e-3c3e-407c-881b-efd7d3586e17","block_type":"box","text":"provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of","page_number":351,"box":{"x":117,"y":709,"width":748,"height":13}},{"id":"bebfb779-da39-4111-b28f-0da4ddaa1055","block_type":"box","text":"the bond repaid at maturity may be less than the original principal. In addition, if the Fund purchases","page_number":351,"box":{"x":116,"y":725,"width":744,"height":12}},{"id":"7ed9acc9-bc24-49b0-b424-8e8319589672","block_type":"box","text":"inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign inflation","page_number":351,"box":{"x":117,"y":740,"width":761,"height":13}},{"id":"04730d3d-6895-4d69-a31a-6fe4a8ade170","block_type":"box","text":"index may not be correlated to the rate of inflation in the United States.","page_number":351,"box":{"x":117,"y":756,"width":523,"height":12}},{"id":"24d7dac2-ed62-4b81-8e8b-8289350e2576","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest","page_number":351,"box":{"x":116,"y":784,"width":727,"height":12}},{"id":"119980e7-7a9f-4000-9cd0-d8fec5dce127","block_type":"box","text":"rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates and the","page_number":351,"box":{"x":117,"y":800,"width":736,"height":12}},{"id":"a4655f46-2dfb-49c6-905e-28abe85bfff4","block_type":"box","text":"rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real","page_number":351,"box":{"x":117,"y":815,"width":717,"height":12}},{"id":"cf4a0963-64fd-4495-a9dc-e568d5591e2f","block_type":"box","text":"interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if","page_number":351,"box":{"x":117,"y":831,"width":743,"height":12}},{"id":"a3c8da8e-a8c3-4ceb-850d-dcd748085775","block_type":"box","text":"nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a","page_number":351,"box":{"x":117,"y":846,"width":769,"height":12}},{"id":"501225b9-5e93-4aa1-b7b8-d58e145de7b3","block_type":"box","text":"decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of","page_number":351,"box":{"x":116,"y":862,"width":749,"height":11}},{"id":"3367544d-db38-4d47-9a53-1eb15a73e581","block_type":"box","text":"inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":351,"box":{"x":117,"y":877,"width":577,"height":12}},{"id":"8835cecc-3398-4e00-8e21-04787d899588","block_type":"box","text":"II-12","page_number":351,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"3821cabb-f98c-4506-9ee2-4e303b85fb07","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":351,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"da6dfb00-66a4-48c9-b209-1716322efe2d","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term","page_number":352,"box":{"x":116,"y":87,"width":725,"height":12}},{"id":"ba622ee3-c1dd-42fa-805a-a20eb2c09548","block_type":"box","text":"increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than","page_number":352,"box":{"x":117,"y":102,"width":731,"height":13}},{"id":"e08cc95d-335d-448c-85f0-2f80f76bc76a","block_type":"box","text":"inflation (for example, due to changes in currency exchange rates), investors in these securities may","page_number":352,"box":{"x":117,"y":118,"width":749,"height":12}},{"id":"79148446-24fa-4dea-938a-0c82a6ec3dde","block_type":"box","text":"not be protected to the extent that the increase is not reflected in the bond’s inflation measure.","page_number":352,"box":{"x":117,"y":134,"width":704,"height":11}},{"id":"70c3a9bd-0201-4e14-b0dc-e8935ee4b739","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is","page_number":352,"box":{"x":117,"y":163,"width":750,"height":13}},{"id":"6156232e-2875-47f1-acf5-ced2c9cf9e67","block_type":"box","text":"the Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S.","page_number":352,"box":{"x":116,"y":179,"width":739,"height":12}},{"id":"5db02b4c-7a76-41fd-9947-5074e7af920a","block_type":"box","text":"Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of","page_number":352,"box":{"x":117,"y":194,"width":747,"height":13}},{"id":"195980ee-d16d-4039-9010-9bdb2a527395","block_type":"box","text":"components such as housing, food, transportation and energy. Inflation-indexed bonds issued by a","page_number":352,"box":{"x":116,"y":210,"width":739,"height":12}},{"id":"73bd1bbb-c618-45ee-ba32-c073e9b9fbac","block_type":"box","text":"foreign government are generally adjusted to reflect a comparable inflation index, calculated by that","page_number":352,"box":{"x":116,"y":225,"width":743,"height":13}},{"id":"42b65302-7db2-47e3-8463-1197b04d7d5f","block_type":"box","text":"government. There can be no assurance that the CPI-U or any foreign inflation index will accurately","page_number":352,"box":{"x":116,"y":241,"width":744,"height":12}},{"id":"b8a5af67-f6e4-4f4f-99dc-aa05907c1fc6","block_type":"box","text":"measure the real rate of inflation in the prices of goods and services. Moreover, there can be no","page_number":352,"box":{"x":117,"y":256,"width":716,"height":13}},{"id":"492708a7-7539-4781-b376-4d9c0bd6f72a","block_type":"box","text":"assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":352,"box":{"x":116,"y":272,"width":745,"height":12}},{"id":"a701f47d-f6e1-4797-b09a-259ac41f1b32","block_type":"box","text":"United States.","page_number":352,"box":{"x":117,"y":287,"width":109,"height":10}},{"id":"f301cd33-cba2-4756-bd01-90b31067f7fe","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary","page_number":352,"box":{"x":116,"y":317,"width":750,"height":12}},{"id":"15579e22-f24f-47cf-a67a-d3c975f83c9e","block_type":"box","text":"income, even though investors do not receive their principal until maturity.","page_number":352,"box":{"x":117,"y":333,"width":552,"height":12}},{"id":"e2774c28-0147-437c-8a7d-20712c0471bb","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":352,"box":{"x":117,"y":363,"width":265,"height":12}},{"id":"80b9c130-0bee-407f-a33e-40a874efd62d","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which","page_number":352,"box":{"x":383,"y":363,"width":492,"height":12}},{"id":"40076105-a6ec-4535-ab42-f7e6266d6f08","block_type":"box","text":"are securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent","page_number":352,"box":{"x":116,"y":378,"width":750,"height":12}},{"id":"97606330-dcc5-4542-86c7-a75b56036a59","block_type":"box","text":"quality by a Fund’s Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or","page_number":352,"box":{"x":116,"y":394,"width":734,"height":12}},{"id":"4f0396bf-d1df-441c-bf5c-f098064f77cf","block_type":"box","text":"AAA by S&P. It should be noted that debt obligations rated in the lowest of the top four ratings (","page_number":352,"box":{"x":116,"y":409,"width":708,"height":12}},{"id":"f663fa9c-cdc5-4f8d-9b78-f606c1c092d5","block_type":"box","text":"i.e.","page_number":352,"box":{"x":825,"y":409,"width":20,"height":10}},{"id":"cefaf4e0-3def-4bba-ad1f-5891bf857077","block_type":"box","text":",","page_number":352,"box":{"x":848,"y":417,"width":8,"height":3}},{"id":"685f59e7-a855-480e-9e6d-376cbaff0ced","block_type":"box","text":"“Baa” by Moody’s or “BBB” by S&P) are considered to have some speculative characteristics and are","page_number":352,"box":{"x":116,"y":425,"width":756,"height":12}},{"id":"f386a32c-0b5b-4e45-aaff-7dff542cd84e","block_type":"box","text":"more sensitive to economic change than higher rated securities. If an investment grade security of a","page_number":352,"box":{"x":117,"y":440,"width":747,"height":12}},{"id":"51026e89-be01-446d-8671-619a75ade302","block_type":"box","text":"Fund is subsequently downgraded below investment grade, the Fund’s Manager will consider such an","page_number":352,"box":{"x":117,"y":456,"width":761,"height":12}},{"id":"8a977ca4-0675-4112-be06-ba225e47905d","block_type":"box","text":"event in determining whether the Fund should continue to hold the security. Subject to its investment","page_number":352,"box":{"x":116,"y":471,"width":752,"height":12}},{"id":"ad556d95-fab8-4204-a9bd-6e3309e2f298","block_type":"box","text":"strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":352,"box":{"x":116,"y":487,"width":679,"height":12}},{"id":"1d5b57d8-36a4-4e05-9263-1f23d032af21","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":352,"box":{"x":116,"y":517,"width":566,"height":12}},{"id":"82a9ec9a-7c44-4e06-82cf-2df511c184d7","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":352,"box":{"x":116,"y":547,"width":296,"height":12}},{"id":"747b1aff-f1fa-4827-99d9-47a08e6dfb3d","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to","page_number":352,"box":{"x":117,"y":569,"width":711,"height":12}},{"id":"905dd6c0-efe9-4f99-bd17-4c19444ab967","block_type":"box","text":"investors as “junk bonds” are debt securities that are rated below investment grade by the major rating","page_number":352,"box":{"x":117,"y":585,"width":764,"height":12}},{"id":"83e6eeb5-c650-490c-b592-a9778570e56e","block_type":"box","text":"agencies or are securities that Fund management believes are of comparable quality. While generally","page_number":352,"box":{"x":116,"y":600,"width":759,"height":12}},{"id":"5e579041-647f-45a4-9d3c-ed1c2c7c9b36","block_type":"box","text":"providing greater income and opportunity for gain, non-investment grade debt securities may be","page_number":352,"box":{"x":117,"y":616,"width":715,"height":12}},{"id":"902e2307-56f9-4465-8e8e-64ecfac461f3","block_type":"box","text":"subject to greater risks than securities which have higher credit ratings, including a high risk of default,","page_number":352,"box":{"x":116,"y":631,"width":764,"height":12}},{"id":"fc8d1fbd-3bca-4f16-a154-c1aad6d34c7d","block_type":"box","text":"and their yields will fluctuate over time. High yield securities will generally be in the lower rating","page_number":352,"box":{"x":116,"y":647,"width":709,"height":12}},{"id":"95375f3b-7396-466d-99a0-7f3c4e249d02","block_type":"box","text":"categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P) or","page_number":352,"box":{"x":116,"y":662,"width":750,"height":12}},{"id":"6042787b-4ffc-47d5-a4c0-96ae60d0d874","block_type":"box","text":"will be non-rated. The credit rating of a high yield security does not necessarily address its market","page_number":352,"box":{"x":116,"y":678,"width":726,"height":12}},{"id":"bfcfd463-7e9a-44f4-8b54-47f97ab7fb89","block_type":"box","text":"value risk, and ratings may from time to time change, positively or negatively, to reflect developments","page_number":352,"box":{"x":116,"y":693,"width":752,"height":12}},{"id":"340a1e09-764e-499b-91a6-b55338fec7f5","block_type":"box","text":"regarding the issuer’s financial condition. High yield securities are considered to be speculative with","page_number":352,"box":{"x":117,"y":709,"width":737,"height":12}},{"id":"1af63e87-8a51-4b06-8597-071d81098506","block_type":"box","text":"respect to the capacity of the issuer to timely repay principal and pay interest or dividends in","page_number":352,"box":{"x":117,"y":724,"width":682,"height":12}},{"id":"79b7eeb7-bc77-4698-8efd-efc878c80ef8","block_type":"box","text":"accordance with the terms of the obligation and may have more credit risk than higher rated securities.","page_number":352,"box":{"x":116,"y":740,"width":761,"height":12}},{"id":"59649a94-bfb1-478c-ab4c-5131f9db194f","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":352,"box":{"x":116,"y":770,"width":464,"height":12}},{"id":"f00dec2e-52ae-4c5d-abe5-57641989c41b","block_type":"box","text":"• Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to","page_number":352,"box":{"x":117,"y":793,"width":731,"height":12}},{"id":"956bfc39-d05e-44ac-b4f7-8901194bef3a","block_type":"box","text":"adverse changes in the issuer’s industry and to general economic conditions. Issuers of junk","page_number":352,"box":{"x":150,"y":808,"width":686,"height":12}},{"id":"9fb3a42a-b2bb-4fdd-b6a9-19059957a72b","block_type":"box","text":"bonds may be unable to meet their interest or principal payment obligations because of an","page_number":352,"box":{"x":150,"y":823,"width":669,"height":13}},{"id":"02365932-cf12-41ac-8ddf-9fce5731c99b","block_type":"box","text":"economic downturn, specific issuer developments or the unavailability of additional financing.","page_number":352,"box":{"x":150,"y":839,"width":695,"height":12}},{"id":"69aa4b14-23ea-4324-bb9a-00998ba60651","block_type":"box","text":"• The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets","page_number":352,"box":{"x":117,"y":862,"width":746,"height":12}},{"id":"172195cf-d344-4685-b944-349b22b3072e","block_type":"box","text":"than issuers of investment grade bonds. If the issuer experiences financial stress, it may be","page_number":352,"box":{"x":150,"y":877,"width":684,"height":12}},{"id":"778aebdc-8c6c-4fce-abe1-7052dc214729","block_type":"box","text":"II-13","page_number":352,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ab42006a-60e0-4c1b-8263-60dd94ef195f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":352,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"79b5627d-8c17-4a52-ba11-49e9833749c1","block_type":"box","text":"unable to meet its debt obligations. The issuer’s ability to pay its debt obligations also may be","page_number":353,"box":{"x":150,"y":87,"width":697,"height":12}},{"id":"a8d3de6b-db9b-4ebd-94d3-abc57f577b3d","block_type":"box","text":"lessened by specific issuer developments, or the unavailability of additional financing. Issuers of","page_number":353,"box":{"x":150,"y":102,"width":717,"height":13}},{"id":"3dc0ff34-e294-47a0-9b37-407b47e9eeab","block_type":"box","text":"high yield securities are often in the growth stage of their development and/or involved in a","page_number":353,"box":{"x":150,"y":118,"width":677,"height":12}},{"id":"c00da484-f251-4a8e-b3dd-dfcdba915ad9","block_type":"box","text":"reorganization or takeover.","page_number":353,"box":{"x":150,"y":134,"width":204,"height":12}},{"id":"06f9169e-54a5-4297-bdcc-a2d30dbe6e75","block_type":"box","text":"• Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its","page_number":353,"box":{"x":117,"y":158,"width":754,"height":12}},{"id":"a695c8fa-69b0-424d-aab8-28755e677474","block_type":"box","text":"obligations, the senior obligations are generally paid off before the junior obligations, which will","page_number":353,"box":{"x":150,"y":173,"width":706,"height":12}},{"id":"583d05d7-7971-4369-8bb0-e2cb620318e6","block_type":"box","text":"potentially limit a Fund’s ability to fully recover principal or to receive interest payments when","page_number":353,"box":{"x":150,"y":189,"width":693,"height":12}},{"id":"8685e7dd-8557-4a8f-b477-88a8da540a21","block_type":"box","text":"senior securities are in default. Thus, investors in high yield securities have a lower degree of","page_number":353,"box":{"x":150,"y":204,"width":696,"height":12}},{"id":"c9eaa469-ea94-4703-b264-a9b9fceda230","block_type":"box","text":"protection with respect to principal and interest payments than do investors in higher rated","page_number":353,"box":{"x":150,"y":220,"width":674,"height":12}},{"id":"89bb629a-8bcf-4a1b-95f4-e4c62082d985","block_type":"box","text":"securities.","page_number":353,"box":{"x":150,"y":236,"width":80,"height":9}},{"id":"cd9e1fa7-dfb6-4c4b-9031-f715bada67fc","block_type":"box","text":"• Junk bonds frequently have redemption features that permit an issuer to repurchase the security","page_number":353,"box":{"x":117,"y":260,"width":753,"height":12}},{"id":"01952853-f2d9-4264-8839-6bcef2535765","block_type":"box","text":"from a Fund before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the","page_number":353,"box":{"x":149,"y":275,"width":738,"height":12}},{"id":"51b18b78-dd25-4693-b2fe-8757af6ae82f","block_type":"box","text":"proceeds in bonds with lower yields and may lose income.","page_number":353,"box":{"x":150,"y":291,"width":437,"height":12}},{"id":"c49ba2ae-9279-42ba-8aa9-6fe2063b7293","block_type":"box","text":"• Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments","page_number":353,"box":{"x":117,"y":315,"width":753,"height":12}},{"id":"c87eef1c-5913-4053-848f-1d9dc57479a2","block_type":"box","text":"may have a greater impact on the prices of junk bonds than on those of other higher rated fixed","page_number":353,"box":{"x":150,"y":331,"width":713,"height":12}},{"id":"b5769c5f-e740-4202-806a-f4ca3cf7d170","block_type":"box","text":"income securities.","page_number":353,"box":{"x":150,"y":346,"width":139,"height":10}},{"id":"6953e207-783f-471d-9ba8-a06500ee9b7b","block_type":"box","text":"• Junk bonds may be less liquid than higher rated fixed-income securities even under normal","page_number":353,"box":{"x":117,"y":370,"width":714,"height":13}},{"id":"835902e0-8903-49d2-b10b-4abf7e5bb640","block_type":"box","text":"economic conditions. Under certain economic and/or market conditions, a Fund may have difficulty","page_number":353,"box":{"x":150,"y":386,"width":738,"height":12}},{"id":"17d3c201-dbef-4f17-be96-09099d490ef3","block_type":"box","text":"disposing of certain high yield securities due to the limited number of investors in that sector of the","page_number":353,"box":{"x":150,"y":401,"width":734,"height":13}},{"id":"f1cddb99-b6fd-40ee-b24b-d2c65cd7fa30","block_type":"box","text":"market. There are fewer dealers in the junk bond market, and there may be significant differences","page_number":353,"box":{"x":150,"y":417,"width":730,"height":12}},{"id":"e7a205c6-a2f2-4070-b7d6-10e653a727b2","block_type":"box","text":"in the prices quoted for junk bonds by the dealers, and such quotations may not be the actual","page_number":353,"box":{"x":150,"y":432,"width":698,"height":13}},{"id":"27d12475-726c-4c23-b395-eea74eef4cc1","block_type":"box","text":"prices available for a purchase or sale. Because junk bonds are less liquid than higher rated","page_number":353,"box":{"x":150,"y":448,"width":688,"height":12}},{"id":"bc05e778-58a8-428f-a08b-f1507cfd0222","block_type":"box","text":"bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities than in","page_number":353,"box":{"x":150,"y":463,"width":720,"height":13}},{"id":"6150671a-81a9-4556-8ed9-bb8e2c3cc5b4","block_type":"box","text":"the case of securities trading in a more liquid market.","page_number":353,"box":{"x":150,"y":479,"width":398,"height":12}},{"id":"f79045a9-6ac7-4cf6-a263-aa4f54688b2a","block_type":"box","text":"• The secondary markets for high yield securities are not as liquid as the secondary markets for","page_number":353,"box":{"x":117,"y":503,"width":734,"height":12}},{"id":"4052622e-508f-4a7a-9625-54345da9fdde","block_type":"box","text":"higher rated securities. The secondary markets for high yield securities are concentrated in","page_number":353,"box":{"x":150,"y":519,"width":680,"height":12}},{"id":"04aee5c9-431e-41f9-ad34-3f2c138ca6b7","block_type":"box","text":"relatively few market makers and participants in the markets are mostly institutional investors,","page_number":353,"box":{"x":150,"y":534,"width":699,"height":12}},{"id":"507ba885-a922-4dde-95c1-aa0bde8f4656","block_type":"box","text":"including insurance companies, banks, other financial institutions and mutual funds. In addition,","page_number":353,"box":{"x":150,"y":550,"width":712,"height":12}},{"id":"7725cacb-e16d-48a0-9ad5-79f83e11a509","block_type":"box","text":"the trading volume for high yield securities is generally lower than that for higher rated securities","page_number":353,"box":{"x":150,"y":565,"width":718,"height":12}},{"id":"da05a7b0-c643-41c5-8b6c-257a31cdcae0","block_type":"box","text":"and the secondary markets could contract under adverse market or economic conditions","page_number":353,"box":{"x":150,"y":581,"width":662,"height":12}},{"id":"eb114808-93f7-4baa-9c6f-1ee16dd33b05","block_type":"box","text":"independent of any specific adverse changes in the condition of a particular issuer. Under certain","page_number":353,"box":{"x":150,"y":596,"width":725,"height":12}},{"id":"214e1629-51bc-413c-8e59-40bae4aebd06","block_type":"box","text":"economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":353,"box":{"x":150,"y":612,"width":695,"height":12}},{"id":"c892ef1b-0b7c-4774-9da9-ed74c561317e","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. An illiquid secondary","page_number":353,"box":{"x":150,"y":627,"width":728,"height":12}},{"id":"1e07201a-8e8c-4ad7-8096-4a1f48a82024","block_type":"box","text":"market may adversely affect the market price of the high yield security, which may result in","page_number":353,"box":{"x":150,"y":643,"width":678,"height":12}},{"id":"afefd0b5-206c-4af7-a6f3-27c807e3c4f8","block_type":"box","text":"increased difficulty selling the particular issue and obtaining accurate market quotations on the","page_number":353,"box":{"x":150,"y":658,"width":706,"height":12}},{"id":"00961aa8-fa24-47e1-8577-da5f5368bbb5","block_type":"box","text":"issue when valuing a Fund’s assets. Market quotations on high yield securities are available only","page_number":353,"box":{"x":150,"y":674,"width":717,"height":12}},{"id":"f21dfbac-2135-46d6-b32e-4eb67f36ada6","block_type":"box","text":"from a limited number of dealers, and such quotations may not be the actual prices available for a","page_number":353,"box":{"x":149,"y":689,"width":726,"height":12}},{"id":"4e9afb1d-1911-439f-9df3-0877b7c1ac82","block_type":"box","text":"purchase or sale. When the secondary market for high yield securities becomes more illiquid, or in","page_number":353,"box":{"x":150,"y":705,"width":728,"height":12}},{"id":"830c0a36-b241-4fe2-9a07-aadb4e665aa5","block_type":"box","text":"the absence of readily available market quotations for such securities, the relative lack of reliable","page_number":353,"box":{"x":150,"y":720,"width":717,"height":12}},{"id":"187b2167-a8b5-465d-8b01-4b3ea415393b","block_type":"box","text":"objective data makes it more difficult to value a Fund’s securities, and judgment plays a more","page_number":353,"box":{"x":150,"y":736,"width":691,"height":12}},{"id":"d2f0fefd-a301-4f8f-abc6-9fc559dbab3e","block_type":"box","text":"important role in determining such valuations.","page_number":353,"box":{"x":150,"y":752,"width":337,"height":12}},{"id":"5f065489-a8f4-49e0-ac15-b6fb018dc7c4","block_type":"box","text":"• A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate","page_number":353,"box":{"x":117,"y":776,"width":757,"height":12}},{"id":"84f392a6-bd49-4089-82b4-98aa544264a0","block_type":"box","text":"new terms with a defaulting issuer.","page_number":353,"box":{"x":150,"y":791,"width":256,"height":12}},{"id":"2abf14cb-86cf-4821-84f9-62044f362711","block_type":"box","text":"• The junk bond markets may react strongly to adverse news about an issuer or the economy, or to","page_number":353,"box":{"x":117,"y":816,"width":756,"height":12}},{"id":"d2d834fb-a929-4d81-9149-6920a364c935","block_type":"box","text":"the perception or expectation of adverse news, whether or not it is based on fundamental analysis.","page_number":353,"box":{"x":150,"y":831,"width":737,"height":12}},{"id":"c07a89a5-57af-46e9-9e49-af00a68f1656","block_type":"box","text":"Additionally, prices for high yield securities may be affected by legislative and regulatory","page_number":353,"box":{"x":149,"y":847,"width":659,"height":12}},{"id":"0be45ef8-cd30-4cb2-b2c1-1bb53649a21a","block_type":"box","text":"developments. These developments could adversely affect a Fund’s NAV and investment","page_number":353,"box":{"x":150,"y":862,"width":669,"height":12}},{"id":"d1eb2f0a-9ca8-4790-979d-7abb8aaf49d6","block_type":"box","text":"practices, the secondary market for high yield securities, the financial condition of issuers of these","page_number":353,"box":{"x":150,"y":878,"width":731,"height":12}},{"id":"9f8546ee-86e4-412e-8b75-b685a33f6525","block_type":"box","text":"II-14","page_number":353,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"736778ef-c9f9-4edc-8743-f898d8438e39","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":353,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"873f5f4a-ef84-478d-b4db-c793b01425bb","block_type":"box","text":"securities and the value and liquidity of outstanding high yield securities, especially in a thinly","page_number":354,"box":{"x":150,"y":87,"width":695,"height":12}},{"id":"45c48ef4-b676-48aa-aa80-a8d2265bcbb3","block_type":"box","text":"traded market. For example, federal legislation requiring the divestiture by federally insured","page_number":354,"box":{"x":150,"y":102,"width":681,"height":13}},{"id":"ae591717-a8f5-425e-b263-26b9fc4f4c7d","block_type":"box","text":"savings and loan associations of their investments in high yield bonds and limiting the deductibility","page_number":354,"box":{"x":150,"y":118,"width":733,"height":12}},{"id":"732d6bf6-e5f6-4cae-988b-3389169edc15","block_type":"box","text":"of interest by certain corporate issuers of high yield bonds adversely affected the market in the","page_number":354,"box":{"x":150,"y":134,"width":706,"height":12}},{"id":"84d8da31-1553-4e36-90ab-7123df2d12c8","block_type":"box","text":"past.","page_number":354,"box":{"x":150,"y":149,"width":41,"height":12}},{"id":"5968ebf3-ede6-4010-80ff-d8d0f8b77e37","block_type":"box","text":"• The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of","page_number":354,"box":{"x":117,"y":172,"width":770,"height":12}},{"id":"bca16438-518c-4f84-aa9a-74f999a51eda","block_type":"box","text":"a non-investment grade security’s principal and interest payments, but does not address market","page_number":354,"box":{"x":150,"y":187,"width":716,"height":12}},{"id":"db5e5f47-eb9f-4d18-9470-4d56537c0907","block_type":"box","text":"value risk. Because such ratings of the ratings agencies may not always reflect current conditions","page_number":354,"box":{"x":150,"y":203,"width":728,"height":12}},{"id":"a0d89467-dd6b-40a4-949d-0fce35741eb3","block_type":"box","text":"and events, in addition to using recognized rating agencies and other sources, the Manager or","page_number":354,"box":{"x":150,"y":218,"width":705,"height":12}},{"id":"91f9e530-6514-424f-9e36-f778f333d5b5","block_type":"box","text":"sub-adviser performs its own analysis of the issuers whose non-investment grade securities a","page_number":354,"box":{"x":150,"y":234,"width":700,"height":12}},{"id":"6187a0a3-e27d-4294-8c66-ceb11dc58b76","block_type":"box","text":"Fund holds. Because of this, the Fund’s performance may depend more on the Manager’s or","page_number":354,"box":{"x":151,"y":249,"width":693,"height":12}},{"id":"b8588ad2-d597-4698-bff8-349625d150ee","block_type":"box","text":"sub-adviser’s own credit analysis than in the case of mutual funds investing in higher-rated","page_number":354,"box":{"x":150,"y":265,"width":678,"height":12}},{"id":"973ad8ca-31ce-426e-afee-b4ee145b0683","block_type":"box","text":"securities.","page_number":354,"box":{"x":150,"y":280,"width":80,"height":10}},{"id":"d5e78af8-1949-4ce6-870f-eca541a90fb5","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as","page_number":354,"box":{"x":117,"y":310,"width":742,"height":12}},{"id":"046672a1-7ffd-495c-ae83-d970aa78703b","block_type":"box","text":"those relating to the creditworthiness of issuers, the ratings and performance of the securities, the","page_number":354,"box":{"x":116,"y":325,"width":731,"height":12}},{"id":"e72c5849-e0aa-4c98-ba94-8d552f83724c","block_type":"box","text":"protections afforded the securities and the diversity of the Fund. The Manager or sub-adviser","page_number":354,"box":{"x":117,"y":341,"width":694,"height":12}},{"id":"bb6a757b-442b-4560-9b5d-1ae772365f88","block_type":"box","text":"continuously monitors the issuers of non-investment grade securities held by the Fund for their ability","page_number":354,"box":{"x":116,"y":356,"width":755,"height":12}},{"id":"d8bea5b1-aced-4fda-8198-089ab2ec96c5","block_type":"box","text":"to make required principal and interest payments, as well as in an effort to control the liquidity of the","page_number":354,"box":{"x":116,"y":372,"width":746,"height":12}},{"id":"e80346e0-f2b4-4d1e-aed0-951da029a745","block_type":"box","text":"Fund so that it can meet redemption requests. If a security’s rating is reduced below the minimum","page_number":354,"box":{"x":117,"y":387,"width":729,"height":12}},{"id":"4c63e0c6-6368-4448-9492-bc923eacc3f2","block_type":"box","text":"credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will consider whether the","page_number":354,"box":{"x":116,"y":403,"width":745,"height":12}},{"id":"5e1d8adc-eddf-45b0-ab21-4f3e3b03a041","block_type":"box","text":"Fund should continue to hold the security.","page_number":354,"box":{"x":117,"y":418,"width":315,"height":12}},{"id":"f035ed35-32c7-4f95-a81b-71bdc61ac197","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net","page_number":354,"box":{"x":117,"y":448,"width":718,"height":12}},{"id":"f44b4401-0fbb-41bb-baf3-2df21ee9024e","block_type":"box","text":"redemptions, the Fund could be forced to sell its holdings without regard to the investment merits,","page_number":354,"box":{"x":117,"y":463,"width":729,"height":12}},{"id":"92832418-e65b-4945-9dea-f3f2cbba62cd","block_type":"box","text":"thereby decreasing the assets upon which the Fund’s rate of return is based.","page_number":354,"box":{"x":116,"y":479,"width":575,"height":12}},{"id":"060bc437-8c41-498a-ace1-785da98e7309","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons,","page_number":354,"box":{"x":116,"y":508,"width":733,"height":12}},{"id":"a5a126ac-5059-4b57-b79a-5bd480f628b6","block_type":"box","text":"such as higher investment research costs and higher commission costs.","page_number":354,"box":{"x":116,"y":524,"width":540,"height":12}},{"id":"46109903-54e5-4a05-8317-cbd3a1142e8c","block_type":"box","text":"Mezzanine Investments.","page_number":354,"box":{"x":116,"y":554,"width":179,"height":9}},{"id":"ea277bac-b281-487b-9e6d-73c96a626007","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a","page_number":354,"box":{"x":297,"y":553,"width":579,"height":13}},{"id":"e14795d5-f931-48da-a67b-d575ee5005ec","block_type":"box","text":"specific credit quality, may invest in certain high yield securities known as mezzanine investments,","page_number":354,"box":{"x":116,"y":569,"width":735,"height":12}},{"id":"b2d57075-94f8-4fca-af85-a9ed624ee997","block_type":"box","text":"which are subordinated debt securities which are generally issued in private placements in connection","page_number":354,"box":{"x":116,"y":585,"width":762,"height":12}},{"id":"635c3143-75eb-48da-b270-02efe1a8d25d","block_type":"box","text":"with an equity security (","page_number":354,"box":{"x":116,"y":600,"width":175,"height":12}},{"id":"40efb9bf-9000-4494-b446-3ba9a6392c1f","block_type":"box","text":"e.g.","page_number":354,"box":{"x":292,"y":603,"width":26,"height":9}},{"id":"15e1de5c-144a-4c08-9d1f-b99ddb318d2b","block_type":"box","text":", with attached warrants). Such mezzanine investments may be issued with","page_number":354,"box":{"x":321,"y":600,"width":563,"height":12}},{"id":"785038db-3dc6-4f7d-8b6e-a1b14f1f8a8f","block_type":"box","text":"or without registration rights. Similar to other high yield securities, maturities of mezzanine investments","page_number":354,"box":{"x":116,"y":615,"width":767,"height":13}},{"id":"39acf46e-2149-4ac3-8ff8-c57c0c136d0d","block_type":"box","text":"are typically seven to ten years, but the expected average life is significantly shorter at three to five","page_number":354,"box":{"x":116,"y":631,"width":738,"height":12}},{"id":"8bbc0c9b-624f-4be9-90eb-eed3b6b53740","block_type":"box","text":"years. Mezzanine investments are usually unsecured and subordinate to other obligations of the","page_number":354,"box":{"x":116,"y":646,"width":719,"height":13}},{"id":"1ee7a836-32f3-4f5d-9187-d1ef5c6d72cb","block_type":"box","text":"issuer.","page_number":354,"box":{"x":117,"y":662,"width":47,"height":10}},{"id":"8ce34c85-c497-4be0-a108-c34193e3c592","block_type":"box","text":"Pay-in-kind Bonds.","page_number":354,"box":{"x":116,"y":692,"width":142,"height":12}},{"id":"c3e71696-24d1-40fd-9091-e8a11cec8706","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds","page_number":354,"box":{"x":266,"y":692,"width":584,"height":12}},{"id":"ac8b444c-5f30-42c3-a6a3-602a9fda877b","block_type":"box","text":"which pay interest through the issuance of additi","page_number":354,"box":{"x":116,"y":707,"width":366,"height":12}},{"id":"ff16f3b8-7ecc-4d55-9704-d90643e81bca","block_type":"box","text":"onal debt or equity securities. Similar to zero","page_number":354,"box":{"x":484,"y":707,"width":338,"height":12}},{"id":"d6d2c6f1-b779-4c24-9e7a-50808cd0a55f","block_type":"box","text":"coupon obligations, pay-in-kind bonds also carry additional risk as holders of these types of","page_number":354,"box":{"x":116,"y":723,"width":694,"height":12}},{"id":"a7ad85c7-b8f5-4fb0-8396-f5dc5e42b9a0","block_type":"box","text":"securities realize no cash until the cash payment dat","page_number":354,"box":{"x":116,"y":738,"width":398,"height":12}},{"id":"e6835ee1-159b-4a2b-a3d3-3414cb052137","block_type":"box","text":"e unless a portion of such securities is sold and,","page_number":354,"box":{"x":515,"y":738,"width":364,"height":12}},{"id":"6e38cff1-dfd9-4e34-ba9f-d2536a6b27fc","block_type":"box","text":"if the issuer defaults, a Fund may obtain no return","page_number":354,"box":{"x":117,"y":754,"width":377,"height":12}},{"id":"c25f656d-f8b7-4dc6-81fe-d05dacd37398","block_type":"box","text":"at all on its investment. The market price of","page_number":354,"box":{"x":500,"y":754,"width":329,"height":12}},{"id":"08e60705-5d8f-4e71-8afa-01f66bbac5de","block_type":"box","text":"pay-in-kind bonds is affected by interest rate changes","page_number":354,"box":{"x":117,"y":769,"width":406,"height":12}},{"id":"91b19a2c-a4be-4b36-93db-45a8862d4ec3","block_type":"box","text":"to a greater extent, and therefore tends to be","page_number":354,"box":{"x":529,"y":769,"width":341,"height":12}},{"id":"5100ae23-42fc-4331-be71-c4c9643d3ce7","block_type":"box","text":"more volatile, than that of securities which pay inte","page_number":354,"box":{"x":117,"y":785,"width":383,"height":12}},{"id":"4f9bd174-e1c9-4073-a9db-9a031aef2f33","block_type":"box","text":"rest in cash. Additionally, current U.S. federal tax","page_number":354,"box":{"x":502,"y":785,"width":371,"height":12}},{"id":"75ad313a-4526-4a2e-91fb-b46c8700ed8b","block_type":"box","text":"law requires the holder of pay-in-kind bonds to accrue","page_number":354,"box":{"x":117,"y":800,"width":408,"height":12}},{"id":"4ba8b3ed-fa59-45ec-bde3-39339e43f777","block_type":"box","text":"income with respect to these securities prior","page_number":354,"box":{"x":531,"y":800,"width":334,"height":12}},{"id":"80cb3eea-74e6-497c-b8ed-f911dd119228","block_type":"box","text":"to the receipt of cash payments. To maintain it","page_number":354,"box":{"x":116,"y":816,"width":352,"height":12}},{"id":"a070ebf3-7ebd-46d9-b5d0-33d17efeeb63","block_type":"box","text":"s qualification as a regulated investment company","page_number":354,"box":{"x":469,"y":816,"width":379,"height":12}},{"id":"da5d4d26-8ae3-4681-beaf-5eb70cffd042","block_type":"box","text":"and avoid liability for U.S. federal income and exci","page_number":354,"box":{"x":116,"y":831,"width":380,"height":12}},{"id":"53583bc4-65c8-4b8e-8c00-9f902215a51f","block_type":"box","text":"se taxes, each Fund may be required to distribute","page_number":354,"box":{"x":497,"y":831,"width":382,"height":12}},{"id":"e6754087-a007-4123-8597-7b47aed92a89","block_type":"box","text":"income accrued with respect to these securities","page_number":354,"box":{"x":117,"y":847,"width":365,"height":12}},{"id":"b528b65b-6e2c-4905-9d64-184aeda0f55b","block_type":"box","text":"and may have to dispose of portfolio securities","page_number":354,"box":{"x":483,"y":847,"width":358,"height":12}},{"id":"f2b764f5-cd31-4b68-9dd7-21f3663ae044","block_type":"box","text":"under disadvantageous circumstances in order to","page_number":354,"box":{"x":117,"y":862,"width":379,"height":12}},{"id":"16c45e31-dba4-4aef-8384-982910c10c6c","block_type":"box","text":"generate cash to satisfy these distribution","page_number":354,"box":{"x":497,"y":862,"width":321,"height":12}},{"id":"eb6e3890-769a-47e5-89a9-5b0ebbe5716e","block_type":"box","text":"requirements.","page_number":354,"box":{"x":117,"y":878,"width":108,"height":12}},{"id":"046de4f1-44b9-4232-ab7a-43101f4bbd30","block_type":"box","text":"II-15","page_number":354,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"97f10d19-4743-465f-9290-0346d7ae1de9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":354,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"159b1869-36ec-489d-88df-b9636aa88e70","block_type":"box","text":"Supranational Entities.","page_number":355,"box":{"x":117,"y":87,"width":165,"height":12}},{"id":"87fc890e-6479-4421-9066-7fefd46ed128","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of","page_number":355,"box":{"x":284,"y":87,"width":564,"height":12}},{"id":"7724dbe0-ee03-4f5c-a6ab-1d385674646e","block_type":"box","text":"such entities include the International Bank for Reconstruction and Development (the World Bank), the","page_number":355,"box":{"x":116,"y":102,"width":766,"height":13}},{"id":"0f0a1859-8d96-482b-89bb-dbea9068f9ce","block_type":"box","text":"European Steel and Coal Community, the Asian Development Bank and the Inter-American","page_number":355,"box":{"x":117,"y":118,"width":683,"height":12}},{"id":"df299164-a78c-4473-a63b-1c294262fb1f","block_type":"box","text":"Development Bank. The government members, or “stockholders,” usually make initial capital","page_number":355,"box":{"x":117,"y":134,"width":691,"height":12}},{"id":"9279c923-75c9-4f19-b4d8-62ba9b2cb482","block_type":"box","text":"contributions to the supranational entity and in many cases are committed to make additional capital","page_number":355,"box":{"x":116,"y":149,"width":748,"height":12}},{"id":"fb5a23bb-25c3-4612-9261-c74fadafdcaf","block_type":"box","text":"contributions if the supranational entity is unable to repay its borrowings. There is no guarantee that","page_number":355,"box":{"x":116,"y":165,"width":744,"height":12}},{"id":"bbee661b-bb13-4caf-b74d-9b4bcd1725f5","block_type":"box","text":"one or more stockholders of a supranational entity will continue to make any necessary additional","page_number":355,"box":{"x":116,"y":180,"width":729,"height":12}},{"id":"6719d2f5-319c-4445-a78c-9e24b0ac7009","block_type":"box","text":"capital contributions. If such contributions are not made, the entity may be unable to pay interest or","page_number":355,"box":{"x":116,"y":196,"width":739,"height":12}},{"id":"970e1f32-56f4-4d3c-99a8-06e5a448cf71","block_type":"box","text":"repay principal on its debt securities, and a Fund may lose money on such investments.","page_number":355,"box":{"x":117,"y":211,"width":655,"height":12}},{"id":"068500a5-8a1e-4fd6-b68d-e12219d1ec8a","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":355,"box":{"x":116,"y":244,"width":367,"height":12}},{"id":"8c008ee3-5367-4efd-b99e-3e4c103195a3","block_type":"box","text":"Certain Funds may invest in the securities of foreign","page_number":355,"box":{"x":484,"y":244,"width":397,"height":12}},{"id":"e0646f96-db57-4d1a-a0dc-ead94d1bd637","block_type":"box","text":"issuers in the form of Depositary Receipts or other securities convertible into securities of foreign","page_number":355,"box":{"x":117,"y":260,"width":722,"height":12}},{"id":"9ca25650-0dca-4d8c-96f3-404f8d9f9b33","block_type":"box","text":"issuers. Depositary Receipts may not necessarily be denominated in the same currency as the","page_number":355,"box":{"x":117,"y":275,"width":707,"height":12}},{"id":"9d6ae4b6-ef23-4bd1-b31a-25991e7eea4c","block_type":"box","text":"underlying securities into which they may be converted. The Fund may invest in both sponsored and","page_number":355,"box":{"x":117,"y":291,"width":749,"height":12}},{"id":"e6f20357-125b-454b-ae1e-854a4b367ef4","block_type":"box","text":"unsponsored American Depositary Receipts (“ADRs”), European Depositary Receipts (“EDRs”), Global","page_number":355,"box":{"x":117,"y":306,"width":769,"height":12}},{"id":"c8e10c3c-65be-4cf6-8a5f-50dac41259f5","block_type":"box","text":"Depositary Receipts (“GDRs”) and other similar global instruments. ADRs typically are issued by an","page_number":355,"box":{"x":117,"y":322,"width":743,"height":12}},{"id":"41db1853-0c1d-431b-954b-a04d8ee1dc4f","block_type":"box","text":"American bank or trust company and evidence ownership of underlying securities issued by a foreign","page_number":355,"box":{"x":116,"y":337,"width":756,"height":12}},{"id":"217bb184-9560-4daf-ab39-53612441e9ee","block_type":"box","text":"corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are receipts","page_number":355,"box":{"x":116,"y":353,"width":757,"height":12}},{"id":"7d677970-dbfe-40f0-b5b8-ce286601dfb1","block_type":"box","text":"issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either","page_number":355,"box":{"x":117,"y":368,"width":739,"height":12}},{"id":"36be96ab-80f5-4dfe-b04d-6bf40f2ce44e","block_type":"box","text":"foreign or domestic underlying securities. GDRs are depositary receipts structured like global debt","page_number":355,"box":{"x":116,"y":384,"width":732,"height":12}},{"id":"8570e1a7-e760-4fb5-8e8a-6f0cecd84abc","block_type":"box","text":"issues to facilitate trading on an international basis. In addition to investment risks associated with the","page_number":355,"box":{"x":117,"y":399,"width":758,"height":12}},{"id":"c23b0749-0bff-463d-899a-b34cb2c09ebe","block_type":"box","text":"underlying issuer, Depositary Receipts expose a Fund to additional risks associated with the","page_number":355,"box":{"x":117,"y":415,"width":689,"height":12}},{"id":"ab866416-c523-4efa-8e7a-e931c5b63463","block_type":"box","text":"non-uniform terms that apply to Depositary Receipt programs, credit exposure to the depository bank","page_number":355,"box":{"x":117,"y":430,"width":754,"height":12}},{"id":"8c7602b5-421f-4ad8-8529-dfc667abdd58","block_type":"box","text":"and to the sponsors and other parties with whom the depository bank establishes the programs,","page_number":355,"box":{"x":116,"y":446,"width":716,"height":12}},{"id":"b66a18ab-8727-45ac-82af-74758e45abbe","block_type":"box","text":"currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR, EDR and","page_number":355,"box":{"x":116,"y":461,"width":748,"height":12}},{"id":"a2e527c5-a5b2-4430-b686-652dcf7dc148","block_type":"box","text":"GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":355,"box":{"x":117,"y":477,"width":771,"height":12}},{"id":"5591e8fa-5976-45e2-8aa9-d0e8dd2f9cd2","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored","page_number":355,"box":{"x":116,"y":492,"width":701,"height":12}},{"id":"66d4d513-ea7d-4153-a3e9-8a666624aa22","block_type":"box","text":"programs and do not provide holders with many of the shareholder benefits that come from investing in","page_number":355,"box":{"x":117,"y":508,"width":769,"height":12}},{"id":"d509da96-0e32-4564-bb5c-82df204983c1","block_type":"box","text":"a sponsored Depositary Receipt. Available information concerning the issuer may not be as current as","page_number":355,"box":{"x":116,"y":523,"width":764,"height":12}},{"id":"1ed8fd92-ae7f-4a9d-81be-14e93de3e902","block_type":"box","text":"for sponsored ADRs, EDRs and GDRs, and the prices of unsponsored ADRs, EDRs and GDRs may","page_number":355,"box":{"x":116,"y":539,"width":750,"height":12}},{"id":"a4abc200-0ec1-4335-9d04-a6c32d5f37a7","block_type":"box","text":"be more volatile than if such instruments were sponsored by the issuer. Depositary Receipts are","page_number":355,"box":{"x":117,"y":554,"width":718,"height":12}},{"id":"9f9fae30-bae7-4227-b5cb-672b58508d98","block_type":"box","text":"generally subject to the same risks as the foreign securities that they evidence or into which they may","page_number":355,"box":{"x":116,"y":570,"width":759,"height":12}},{"id":"e14a903a-c269-45cd-9df8-e7b170478b67","block_type":"box","text":"be converted. Investments in ADRs, EDRs and GDRs present additional investment considerations as","page_number":355,"box":{"x":117,"y":585,"width":763,"height":12}},{"id":"4b39c368-dc9d-4edb-8792-66f574aaefd9","block_type":"box","text":"described under “Foreign Investment Risks.”","page_number":355,"box":{"x":116,"y":601,"width":336,"height":12}},{"id":"3fbd59e3-00f6-4c67-b68e-16c2e9f2ad35","block_type":"box","text":"Derivatives.","page_number":355,"box":{"x":116,"y":634,"width":99,"height":10}},{"id":"f3e6b095-6523-4148-bc1f-24b6286c0708","block_type":"box","text":"General.","page_number":355,"box":{"x":117,"y":658,"width":68,"height":10}},{"id":"60050af2-dc42-4922-9168-31c7ffc5e8e5","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments","page_number":355,"box":{"x":186,"y":658,"width":675,"height":12}},{"id":"8ff0db0d-320a-4ff4-8433-78a5e2b9cd64","block_type":"box","text":"that derive their value from one or more securities, commodities (such as gold or oil), currencies","page_number":355,"box":{"x":116,"y":674,"width":712,"height":12}},{"id":"5eef9a1a-89db-4bd4-99e5-35731c8a6e5a","block_type":"box","text":"(including bitcoin and ether), interest rates, credit events or indices (a measure of value or rates, such","page_number":355,"box":{"x":117,"y":689,"width":753,"height":12}},{"id":"4f7237fb-0f29-4320-bbea-9fe2eb812bd9","block_type":"box","text":"as the S&P 500 Index or the prime lending rate) or other reference asset. Derivatives may allow a","page_number":355,"box":{"x":116,"y":705,"width":724,"height":12}},{"id":"1add513c-2e9d-49b9-8820-6db07234d39a","block_type":"box","text":"Fund to increase or decrease the level of risk to which the Fund is exposed more quickly and efficiently","page_number":355,"box":{"x":117,"y":720,"width":764,"height":12}},{"id":"11913972-9216-406b-9ac8-84213bd7aef9","block_type":"box","text":"than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":355,"box":{"x":116,"y":736,"width":756,"height":12}},{"id":"d92fc639-6322-49a7-85f1-5615c892617c","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset","page_number":355,"box":{"x":116,"y":752,"width":761,"height":12}},{"id":"c0c43f78-d88b-4152-90f7-258e64d7da0f","block_type":"box","text":"or asset class it is prohibited by its investment restrictions from purchasing directly. As described","page_number":355,"box":{"x":116,"y":767,"width":716,"height":12}},{"id":"2ca46bc2-1fcb-4048-bd25-2d91ca5f3f18","block_type":"box","text":"below, derivatives can be used for hedging or speculative purposes. Funds will engage in transaction","page_number":355,"box":{"x":117,"y":782,"width":755,"height":13}},{"id":"f4b64551-17de-450c-af1d-d3cb728f8b93","block_type":"box","text":"level payment netting,","page_number":355,"box":{"x":117,"y":798,"width":161,"height":12}},{"id":"ede53a75-db11-4313-b7e8-41dc7a1a0f23","block_type":"box","text":"i.e.","page_number":355,"box":{"x":285,"y":798,"width":20,"height":9}},{"id":"9feba06a-c7a0-4513-a9e6-4a0763b25dfb","block_type":"box","text":", the payment obligations of derivatives contracts are netted against one","page_number":355,"box":{"x":308,"y":798,"width":534,"height":12}},{"id":"f3333555-ce17-4d8f-a88a-576d164c5841","block_type":"box","text":"another with the Fund receiving or paying, as the case may be, only the net amount of the two","page_number":355,"box":{"x":116,"y":813,"width":698,"height":13}},{"id":"35212060-2d24-4a82-b87c-addb746d0ac6","block_type":"box","text":"payment streams.","page_number":355,"box":{"x":117,"y":829,"width":137,"height":12}},{"id":"9e701342-a61d-4eae-96bc-f58d48ba588b","block_type":"box","text":"Hedging.","page_number":355,"box":{"x":116,"y":862,"width":72,"height":12}},{"id":"8675317b-afa9-4483-866d-a5b320733d7e","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset","page_number":355,"box":{"x":189,"y":862,"width":684,"height":12}},{"id":"4406a422-fb1c-4c99-b36f-fb370dbfa7e4","block_type":"box","text":"the risks associated with other Fund holdings. Losses on other investments may be substantially","page_number":355,"box":{"x":116,"y":878,"width":721,"height":12}},{"id":"bf5b9265-d5b7-4f12-9367-ef1d8076d976","block_type":"box","text":"II-16","page_number":355,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9697251f-4e68-4b58-a796-cb446602e4cf","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":355,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d5e93a2d-6cd5-4c9c-9230-174d7cbc6e11","block_type":"box","text":"reduced by gains on a derivative that reacts in an opposite manner to market movements. Although","page_number":356,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"eea0c7b1-08a4-4403-91b3-d3f1d88b8e8b","block_type":"box","text":"hedging may reduce losses, it may also reduce or eliminate gains. In addition, hedging may cause","page_number":356,"box":{"x":117,"y":103,"width":733,"height":12}},{"id":"059754ca-24d7-49cf-a66d-abe5eea1a626","block_type":"box","text":"losses if the market moves in an unanticipated manner, or if the cost of the derivative outweighs the","page_number":356,"box":{"x":117,"y":118,"width":744,"height":12}},{"id":"760fd418-680e-4bcb-93bf-b8548e7f391c","block_type":"box","text":"benefit of the hedge. The effectiveness of hedging may be reduced by correlation risk,","page_number":356,"box":{"x":117,"y":134,"width":643,"height":12}},{"id":"daac7da2-d127-4e59-a9f3-e0d986b52a88","block_type":"box","text":"i.e.","page_number":356,"box":{"x":761,"y":134,"width":20,"height":9}},{"id":"06002bfa-3b53-48bb-83b1-45904ced9ff6","block_type":"box","text":",","page_number":356,"box":{"x":784,"y":142,"width":2,"height":3}},{"id":"bcda6e7b-ffc2-4bc7-88ac-e2bdea8535d0","block_type":"box","text":"the risk that","page_number":356,"box":{"x":793,"y":134,"width":91,"height":9}},{"id":"49c69b1f-fd12-4f53-a905-92b0fdc33d7f","block_type":"box","text":"changes in the value of the derivative will not match those of the holdings being hedged as expected","page_number":356,"box":{"x":116,"y":149,"width":751,"height":12}},{"id":"196cb7bf-7be9-45a8-9c2a-ee143634d106","block_type":"box","text":"by a Fund, which may result in additional losses to the Fund. The inability to close or offset derivatives","page_number":356,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"3b7bb561-b4b4-4232-89da-b9b8c0843df1","block_type":"box","text":"could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging","page_number":356,"box":{"x":116,"y":180,"width":762,"height":12}},{"id":"d3221d42-8db3-44fe-8241-1396de491702","block_type":"box","text":"will be effective. No Fund is required to use derivatives to hedge.","page_number":356,"box":{"x":116,"y":196,"width":486,"height":12}},{"id":"aec5f919-9680-4f8c-b804-f877f9f0e970","block_type":"box","text":"Speculation.","page_number":356,"box":{"x":117,"y":227,"width":90,"height":11}},{"id":"acfb1751-4f75-4ac8-be26-cf1607d265e9","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance","page_number":356,"box":{"x":208,"y":227,"width":638,"height":12}},{"id":"2a96d6d7-7d5c-4635-92dc-e0c0812c007c","block_type":"box","text":"returns. The use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather","page_number":356,"box":{"x":117,"y":242,"width":753,"height":12}},{"id":"5b8db7ab-8a2c-4b19-a38f-5b793853897c","block_type":"box","text":"than offset the risk of other positions. To the extent a Fund invests in a derivative for speculative","page_number":356,"box":{"x":116,"y":258,"width":719,"height":11}},{"id":"721abe7d-c0d2-4c5a-9b96-698dcf2c394c","block_type":"box","text":"purposes, the Fund will be fully exposed to the risks of loss of that derivative, which may sometimes be","page_number":356,"box":{"x":117,"y":273,"width":769,"height":12}},{"id":"5f0e929f-42f0-4ced-849f-db0e65726203","block_type":"box","text":"greater than the derivative’s cost, and the potential for loss in certain cases may be unlimited.","page_number":356,"box":{"x":116,"y":289,"width":699,"height":12}},{"id":"7d9fd18c-0c65-4596-842e-a7097c881d3f","block_type":"box","text":"Regulation of Derivatives.","page_number":356,"box":{"x":116,"y":327,"width":196,"height":12}},{"id":"aa6c7df2-d064-4a3d-adb5-6e40de55527e","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":356,"box":{"x":116,"y":351,"width":352,"height":12}},{"id":"9bc292f2-633b-4266-9245-16463557d265","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits","page_number":356,"box":{"x":469,"y":351,"width":416,"height":12}},{"id":"a249f78f-a38b-44c1-9497-360cfeca0341","block_type":"box","text":"a Fund to enter into Derivatives Transactions (as defined below) and certain other transactions","page_number":356,"box":{"x":116,"y":366,"width":708,"height":12}},{"id":"f6792aa6-c8fc-4568-9cc4-b85e8f1b5c7c","block_type":"box","text":"notwithstanding the restrictions on the issuance of “senior securities” under Section 18 of the","page_number":356,"box":{"x":117,"y":382,"width":692,"height":12}},{"id":"d2d50528-2f05-4402-a9d7-3b5fd4913c65","block_type":"box","text":"Investment Company Act. Section 18 of the Investment Company Act, among other things, prohibits","page_number":356,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"f0400032-21a4-4d34-a78f-6f195f5188f5","block_type":"box","text":"open-end funds, including the Funds, from issuing or selling any “senior security,” other than borrowing","page_number":356,"box":{"x":116,"y":413,"width":769,"height":12}},{"id":"b8e1bd9d-de7d-4ce8-a850-0a22e31247be","block_type":"box","text":"from a bank (subject to a requirement to maintain 300% “asset coverage”).","page_number":356,"box":{"x":116,"y":428,"width":560,"height":12}},{"id":"52cae499-39b5-45d7-b7ed-19d078cc9285","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap","page_number":356,"box":{"x":117,"y":459,"width":761,"height":12}},{"id":"9ed958e9-acd5-4132-b4b3-7062deeabcc0","block_type":"box","text":"(including a contract for differences), futures contract, forward contract, option (excluding purchased","page_number":356,"box":{"x":117,"y":475,"width":747,"height":12}},{"id":"00741803-fa7b-4519-a962-e6fc54d1c2f5","block_type":"box","text":"options), any combination of the foregoing, or any similar instrument, under which a Fund is or may be","page_number":356,"box":{"x":116,"y":490,"width":764,"height":12}},{"id":"929d23fd-9296-440b-ab8f-ccca3217b1a0","block_type":"box","text":"required to make any payment or delivery of cash or other assets during the life of the instrument or at","page_number":356,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"c2faa65a-5fbd-41de-9eee-2a1848d89733","block_type":"box","text":"maturity or early termination, whether as margin or settlement payment or otherwise; (2) any short sale","page_number":356,"box":{"x":117,"y":521,"width":767,"height":12}},{"id":"48b4b420-3edb-40e6-a940-615685728ce7","block_type":"box","text":"borrowing; (3) reverse repurchase agreements and similar financing transactions (e.g., recourse and","page_number":356,"box":{"x":117,"y":537,"width":750,"height":12}},{"id":"b86f67d9-c41e-41f3-8442-f4cea7730ae9","block_type":"box","text":"non-recourse tender option bonds, and borrowed bonds), if a Fund elects to treat all of these","page_number":356,"box":{"x":117,"y":552,"width":691,"height":12}},{"id":"fe989d00-2d02-4dc6-8eaa-ea82fb3ae3f8","block_type":"box","text":"transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":356,"box":{"x":116,"y":568,"width":738,"height":12}},{"id":"bd714077-2345-451f-9905-9662f3de2d11","block_type":"box","text":"securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and","page_number":356,"box":{"x":116,"y":583,"width":763,"height":12}},{"id":"4acbf9ce-8196-469c-b382-9c12ec7d014e","block_type":"box","text":"dollar rolls) and non-standard settlement cycle securities, unless such transactions meet the Delayed","page_number":356,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"89520ac4-e459-41de-9914-06e470f3d37d","block_type":"box","text":"Settlement Securities Provision (as defined below under “— When-Issued Securities, Delayed Delivery","page_number":356,"box":{"x":116,"y":614,"width":768,"height":12}},{"id":"ecdd96d1-2ee1-4e60-a83c-1233bd6ba42d","block_type":"box","text":"Securities and Forward Commitments”).","page_number":356,"box":{"x":116,"y":630,"width":302,"height":12}},{"id":"9f7d55dd-74ed-4f5d-8b12-5ed056542be0","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must","page_number":356,"box":{"x":117,"y":661,"width":754,"height":12}},{"id":"d78ea5ea-91ba-4dfa-84c0-93447900451d","block_type":"box","text":"comply with Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things,","page_number":356,"box":{"x":116,"y":676,"width":737,"height":12}},{"id":"8b4fe658-8717-4b4f-aaff-35634f578477","block_type":"box","text":"requires a Fund to adopt and implement a comprehensive written derivatives risk management","page_number":356,"box":{"x":117,"y":692,"width":703,"height":12}},{"id":"2dce1cdb-0501-4123-9564-a2fb6fa3aced","block_type":"box","text":"program (“DRMP”) and comply with a relative or absolute limit on Fund leverage risk calculated based","page_number":356,"box":{"x":117,"y":707,"width":755,"height":12}},{"id":"d14dfd2b-4240-42df-9b29-4769803e78f1","block_type":"box","text":"on value-at-risk (“VaR”). The DRMP is administered by a “derivatives risk manager,” who is appointed","page_number":356,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"5ef4874b-8a52-4da9-ba92-842d0de85287","block_type":"box","text":"by the Fund’s Board, including a majority of the independent Directors, and periodically reviews the","page_number":356,"box":{"x":117,"y":738,"width":734,"height":12}},{"id":"2ac83f42-69a6-446c-9ac8-3f142dc936e8","block_type":"box","text":"DRMP and reports to the Fund’s Board.","page_number":356,"box":{"x":117,"y":754,"width":293,"height":12}},{"id":"7eb0297e-ca08-48d4-a75a-a6d6e65ecb6d","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":356,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"82ce3dad-5ebf-4503-b723-6707da807906","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4)","page_number":356,"box":{"x":116,"y":800,"width":754,"height":12}},{"id":"2a1dce9e-6ff6-45df-9e90-377f74e08e42","block_type":"box","text":"and the Fund adopts and implements written policies and procedures reasonably designed to manage","page_number":356,"box":{"x":116,"y":816,"width":758,"height":12}},{"id":"56768e9c-68a8-48dc-906a-4b7cb328aeb0","block_type":"box","text":"its derivatives risks (the “Limited Derivatives User Exception”).","page_number":356,"box":{"x":117,"y":831,"width":466,"height":12}},{"id":"5039b42e-3688-45c3-937a-15023a7357a0","block_type":"box","text":"Dodd-Frank Regulations.","page_number":356,"box":{"x":116,"y":862,"width":185,"height":12}},{"id":"46d387c1-a283-4dbb-b9a1-06498c41188a","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd","page_number":356,"box":{"x":303,"y":862,"width":560,"height":12}},{"id":"47f60cec-5ccc-464c-99b7-f23c7440efd0","block_type":"box","text":"Frank”), enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter","page_number":356,"box":{"x":117,"y":878,"width":758,"height":12}},{"id":"7a25e17d-b3b6-437a-b0bd-2a1c9eb9e05e","block_type":"box","text":"II-17","page_number":356,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"459752e4-7e06-4fa9-84bf-be72f48ca0fa","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":356,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5e564204-adda-4a4e-817c-02c6c369c278","block_type":"box","text":"(“OTC”) derivatives markets for the first time. While the Commodity Futures Trading Commission","page_number":357,"box":{"x":117,"y":87,"width":722,"height":12}},{"id":"9b7fde84-5165-40f8-aaf8-c92cec6d33b7","block_type":"box","text":"(“CFTC”) and other U.S. regulators have adopted many of the required Dodd-Frank regulations, certain","page_number":357,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"568993e4-2481-45cb-a0aa-5e295d48aca1","block_type":"box","text":"regulations have only recently become effective and other regulations remain to be adopted. The full","page_number":357,"box":{"x":117,"y":118,"width":749,"height":12}},{"id":"9bf8327d-43d0-4dfa-a222-4d524206fb87","block_type":"box","text":"impact of Dodd-Frank on the Funds remains uncertain.","page_number":357,"box":{"x":117,"y":134,"width":411,"height":11}},{"id":"fca50e3c-ed15-44b1-84de-aa15716ab96c","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or with the","page_number":357,"box":{"x":117,"y":165,"width":770,"height":12}},{"id":"ad490ef7-5a24-4dfc-88db-4c27aec5a8ef","block_type":"box","text":"SEC as “security-based swap dealers”. Registered swap dealers","page_number":357,"box":{"x":116,"y":180,"width":480,"height":12}},{"id":"68bb768f-4e0e-4249-8342-d1ac6b8ccac7","block_type":"box","text":"and security-based swap dealers are","page_number":357,"box":{"x":596,"y":180,"width":285,"height":12}},{"id":"9089745d-acce-4117-ac8d-3c05d681dae6","block_type":"box","text":"subject to various regulatory requirements, including, but not limited to, margin, recordkeeping,","page_number":357,"box":{"x":116,"y":196,"width":708,"height":12}},{"id":"20530474-fd4f-423f-9606-e75cccfa46f8","block_type":"box","text":"reporting, transparency, position limits, limitations on conflicts of interest, business conduct standards,","page_number":357,"box":{"x":117,"y":211,"width":761,"height":12}},{"id":"31060948-7186-43f4-addb-84f7d18b034e","block_type":"box","text":"minimum capital requirements and other regulatory requirements, which indirectly impact the Funds","page_number":357,"box":{"x":117,"y":227,"width":743,"height":12}},{"id":"c9df33f3-78f2-41f7-aaf9-1dc4ae7267e3","block_type":"box","text":"that enter into transactions with them.","page_number":357,"box":{"x":116,"y":242,"width":284,"height":10}},{"id":"954a8ce2-5676-4199-8998-82194d272b0a","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed","page_number":357,"box":{"x":116,"y":273,"width":761,"height":12}},{"id":"32b6c665-26e7-44c3-9b95-1477178a1155","block_type":"box","text":"in regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also","page_number":357,"box":{"x":117,"y":289,"width":719,"height":12}},{"id":"6e7d0480-17b7-4cf7-86e9-29e90e7f3ace","block_type":"box","text":"expected to impose similar requirements on certain security-based derivatives in the future. OTC","page_number":357,"box":{"x":116,"y":304,"width":723,"height":12}},{"id":"54346a27-805e-4209-96e9-38496569b6a5","block_type":"box","text":"derivatives trades submitted for clearing are subject to minimum initial and variation margin","page_number":357,"box":{"x":116,"y":320,"width":681,"height":12}},{"id":"7f6010aa-8bd9-4ad4-94b1-2df10720e4ab","block_type":"box","text":"requirements set by the relevant clearinghouse, as well as margin requirements mandated by the","page_number":357,"box":{"x":117,"y":335,"width":726,"height":12}},{"id":"62248cfd-71cd-43cd-88f8-201836d2ebdc","block_type":"box","text":"CFTC, SEC and/or federal prudential regulators. In addition, futures commission merchants (“FCMs”),","page_number":357,"box":{"x":117,"y":351,"width":760,"height":12}},{"id":"7dff4d71-c9b5-4b57-b91a-144e5741d0a2","block_type":"box","text":"who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":357,"box":{"x":116,"y":366,"width":697,"height":12}},{"id":"d1224439-638c-44db-803d-c00cbe8c98d7","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond","page_number":357,"box":{"x":116,"y":382,"width":772,"height":12}},{"id":"04767f76-1f40-4c9e-85ab-6abc96a7e689","block_type":"box","text":"any regulatory and clearinghouse minimums subject to any restrictions on such discretion in the","page_number":357,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"70537121-ae9d-4519-8177-9fc312b162d6","block_type":"box","text":"documentation between the FCM and the customer. These regulatory requirements may make it more","page_number":357,"box":{"x":116,"y":413,"width":764,"height":12}},{"id":"b8fcdee9-61be-4774-a946-6098c1630317","block_type":"box","text":"difficult and costly for the Funds to enter into highly tailored or customized transactions, potentially","page_number":357,"box":{"x":116,"y":428,"width":733,"height":12}},{"id":"2836f212-518a-4bdd-9381-d659cf5d26c7","block_type":"box","text":"rendering certain investment strategies impossible or not economically feasible. If a Fund decides to","page_number":357,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"eed0c063-3427-4eb0-aacb-03e8742172e5","block_type":"box","text":"execute and clear cleared OTC derivatives and/or futures contracts through execution facilities,","page_number":357,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"d111420f-1a6a-4973-9b34-de8088f6031e","block_type":"box","text":"exchanges or clearinghouses, either indirectly through an executing broker, clearing member FCM or","page_number":357,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"bcb50637-48fa-4bd3-bfe3-b83929db8c14","block_type":"box","text":"as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":357,"box":{"x":116,"y":490,"width":709,"height":12}},{"id":"e80b420b-aff7-4239-b53d-5f7557accc76","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":357,"box":{"x":116,"y":506,"width":397,"height":12}},{"id":"75b90e61-07cf-42c5-989b-6fb8f7e58fe5","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not","page_number":357,"box":{"x":116,"y":537,"width":753,"height":12}},{"id":"02286e45-55ce-4186-a65d-7b7a31be2af7","block_type":"box","text":"face a clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/","page_number":357,"box":{"x":116,"y":552,"width":759,"height":12}},{"id":"8d796dd8-7e81-44b7-bda1-a1a3f4cc74ab","block_type":"box","text":"or SEC and that acts as a clearing member. A Fund may face the indirect risk of the failure of another","page_number":357,"box":{"x":116,"y":568,"width":759,"height":12}},{"id":"84576691-9a8e-4468-9a05-2136120ea158","block_type":"box","text":"clearing member customer to meet its obligations to its clearing member. Such scenario could arise","page_number":357,"box":{"x":116,"y":583,"width":744,"height":12}},{"id":"acaf9b53-2a50-4aab-a2ca-987a97a075db","block_type":"box","text":"due to a default by the clearing member on its obligations to the clearinghouse simultaneously with a","page_number":357,"box":{"x":116,"y":599,"width":752,"height":12}},{"id":"d6fee85f-8bfe-42c0-9d5d-b29c9f6461db","block_type":"box","text":"customer’s failure to meet its obligations to the clearing member.","page_number":357,"box":{"x":116,"y":614,"width":485,"height":12}},{"id":"285099cf-caa1-42d5-9627-dc19663ece78","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they","page_number":357,"box":{"x":117,"y":645,"width":742,"height":12}},{"id":"1a0e3211-0124-46ac-abc8-4fd6833d8862","block_type":"box","text":"clear their customers’ cleared OTC derivatives and futures contracts, instead of using such initial","page_number":357,"box":{"x":116,"y":661,"width":716,"height":12}},{"id":"886978bf-2458-458a-993d-3bab99449baf","block_type":"box","text":"margin in their businesses, as was widely permitted for OTC derivatives before Dodd-Frank. While an","page_number":357,"box":{"x":117,"y":676,"width":752,"height":12}},{"id":"2926edeb-3d4e-4857-a82f-0a46a18a78ab","block_type":"box","text":"FCM may require its customer to post initial margin in excess of clearinghouse requirements, and","page_number":357,"box":{"x":117,"y":692,"width":721,"height":12}},{"id":"d92d8320-2fb1-4edc-b210-3b2a7f2b1dd5","block_type":"box","text":"certain clearinghouses may share a portion of their earnings on initial margin with their clearing","page_number":357,"box":{"x":116,"y":707,"width":704,"height":12}},{"id":"0068c91b-73a6-46c6-895b-6621e858cf93","block_type":"box","text":"members, some portion of the initial margin that is passed through to the clearinghouse does not","page_number":357,"box":{"x":117,"y":723,"width":717,"height":12}},{"id":"8d206d8d-70ab-4db3-b4b3-f32f7fc056d3","block_type":"box","text":"generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on initial","page_number":357,"box":{"x":116,"y":738,"width":716,"height":12}},{"id":"63bbf0b6-cf65-430e-ba8a-4a713402ddd8","block_type":"box","text":"margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives","page_number":357,"box":{"x":117,"y":754,"width":734,"height":12}},{"id":"2334d357-e35d-48da-bd9b-0e09e5c01144","block_type":"box","text":"may cause FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives","page_number":357,"box":{"x":117,"y":769,"width":747,"height":12}},{"id":"ff6d9223-22a9-4b55-9d8b-d1c87c7d1c0b","block_type":"box","text":"than swap dealers will provide for non-cleared OTC derivatives. Furthermore, customers, including the","page_number":357,"box":{"x":116,"y":785,"width":760,"height":12}},{"id":"886d7114-f880-4bb0-b341-ac9ee9fcc15d","block_type":"box","text":"Funds, are subject to additional fees payable to FCMs with respect to cleared OTC derivatives, which","page_number":357,"box":{"x":117,"y":800,"width":751,"height":12}},{"id":"a811f094-42ce-4d4b-950b-fd72778fd94d","block_type":"box","text":"may raise the cost to Funds of clearing as compared to trading non-cleared OTC derivatives bilaterally.","page_number":357,"box":{"x":117,"y":816,"width":763,"height":12}},{"id":"80cfd999-f581-442b-9109-929c673d6cc9","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are","page_number":357,"box":{"x":116,"y":847,"width":715,"height":12}},{"id":"fcd1547d-b4a4-46c1-a2fb-ad6b2bdb062c","block_type":"box","text":"required to exchange variation margin with a Fund and may be required by applicable regulations to","page_number":357,"box":{"x":117,"y":862,"width":745,"height":12}},{"id":"dfbbd89f-4eee-43c2-9e14-70fa4b34e5f8","block_type":"box","text":"collect (and in some cases exchange) initial margin with a Fund. Both initial and variation margin may","page_number":357,"box":{"x":116,"y":878,"width":757,"height":12}},{"id":"2d098880-e030-4ee8-ad98-9a91fd4dd303","block_type":"box","text":"II-18","page_number":357,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"337e2401-bb2d-4672-ae5c-f5806531235b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":357,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"44fd2b16-1e29-45e4-94ef-21f8c56fd451","block_type":"box","text":"be comprised of cash and/or securities, subject to applicable regulatory haircuts and other restrictions.","page_number":358,"box":{"x":117,"y":87,"width":763,"height":12}},{"id":"74adcc50-29a9-411c-8a8b-277da69e238f","block_type":"box","text":"Shares of investment companies (other than certain money market funds) may not be posted as","page_number":358,"box":{"x":116,"y":102,"width":719,"height":13}},{"id":"6043b759-f0ee-482e-bd97-1f94b6141dcf","block_type":"box","text":"collateral under applicable regulations.","page_number":358,"box":{"x":116,"y":118,"width":291,"height":12}},{"id":"7ce559e5-0efc-46e4-afb3-5eb5204feaea","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to","page_number":358,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"45d6dc0b-572a-49f7-93e5-66c2249142b1","block_type":"box","text":"evaluate and monitor) speculative position limits (“position limits”) on the maximum speculative position","page_number":358,"box":{"x":116,"y":165,"width":771,"height":12}},{"id":"e60996b8-7ea3-4b1a-b33a-2a4c7f03b22f","block_type":"box","text":"which any person, or group of persons acting in concert, may hold or control in particular contracts. In","page_number":358,"box":{"x":116,"y":180,"width":759,"height":12}},{"id":"a891dbdb-e058-4a74-85fe-6d2c8508b68e","block_type":"box","text":"addition, U.S. federal position limits apply to swaps that are economically equivalent to futures","page_number":358,"box":{"x":116,"y":196,"width":703,"height":12}},{"id":"a27b6580-6daf-4f77-ba7a-311eb49206e0","block_type":"box","text":"contracts on certain agricultural, metals and energy commodities. All positions owned or controlled by","page_number":358,"box":{"x":116,"y":211,"width":758,"height":12}},{"id":"4652c93e-3c2c-4f5f-b2cd-9b4128bcecaa","block_type":"box","text":"the same person or entity, even if in different accounts, must be aggregated for purposes of complying","page_number":358,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"e9b0d737-5b7b-4009-b776-0b3eb7acaa6c","block_type":"box","text":"with the speculative limits. Thus, even if a Fund does not intend to exceed applicable position limits, it","page_number":358,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"bd2def50-f674-4520-b20d-b877bb4d7fa9","block_type":"box","text":"is possible that different clients managed by the Manager and its affiliates may be aggregated for this","page_number":358,"box":{"x":117,"y":258,"width":755,"height":12}},{"id":"dabd7c96-19d9-4386-8252-41c1e4e51a16","block_type":"box","text":"purpose. Therefore, the trading decisions of the Manager may have to be modified and positions held","page_number":358,"box":{"x":117,"y":273,"width":757,"height":12}},{"id":"b4af4b3e-10d5-4c25-b9fd-3304ad76d3bb","block_type":"box","text":"by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions","page_number":358,"box":{"x":117,"y":289,"width":757,"height":12}},{"id":"18ae9b6f-97e4-4375-b5db-b0f5cfbb2c75","block_type":"box","text":"or the elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A","page_number":358,"box":{"x":116,"y":304,"width":723,"height":12}},{"id":"049527c9-e147-4469-ac1c-7c78b2642317","block_type":"box","text":"violation of position limits could also lead to regulatory action materially adverse to a Fund’s investment","page_number":358,"box":{"x":116,"y":320,"width":770,"height":12}},{"id":"8a25df53-1299-4ca1-88b7-ac272cdad67c","block_type":"box","text":"strategy. A Fund may also be affected by other regimes, including those of the European Union and","page_number":358,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"e25781ff-1200-4813-9ef3-c530c47d7247","block_type":"box","text":"United Kingdom, and trading venues that impose position limits on commodity derivative contracts.","page_number":358,"box":{"x":117,"y":351,"width":737,"height":12}},{"id":"4ce2b1b5-5993-4979-befb-388d98b679af","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":358,"box":{"x":115,"y":382,"width":275,"height":12}},{"id":"f27296ca-4ca7-4af8-9da2-0182950a2479","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed,","page_number":358,"box":{"x":392,"y":382,"width":419,"height":12}},{"id":"8ffa4bd9-c7ca-4a9f-b9b1-77ec82d5a3d2","block_type":"box","text":"proposed, or may propose in the future, legislation","page_number":358,"box":{"x":117,"y":397,"width":386,"height":12}},{"id":"8c369a4b-5730-4b2f-a48c-c96f3c6990c5","block_type":"box","text":"similar to Dodd-Frank or other legislation that","page_number":358,"box":{"x":504,"y":397,"width":348,"height":12}},{"id":"09356826-4e43-4384-a872-bea602086b90","block_type":"box","text":"could increase the costs of participating in, or","page_number":358,"box":{"x":116,"y":413,"width":345,"height":12}},{"id":"1b3a15a5-a2df-489b-8568-1f324041996a","block_type":"box","text":"r otherwise adversely impact the liquidity of,","page_number":358,"box":{"x":461,"y":413,"width":332,"height":12}},{"id":"e7b6e1f3-dae7-432d-97ae-873e4bd2ae92","block_type":"box","text":"participating in the commodities markets. For","page_number":358,"box":{"x":117,"y":428,"width":341,"height":12}},{"id":"aec047af-c778-4a5d-9c56-7879381f14b9","block_type":"box","text":"r example, the European Market Infrastructure","page_number":358,"box":{"x":458,"y":428,"width":351,"height":12}},{"id":"07b121b8-a3ef-4a93-bb9e-7e62f8bade5b","block_type":"box","text":"Regulation (Regulation (EU) No 648/2012) (“EMIR”) in","page_number":358,"box":{"x":117,"y":444,"width":410,"height":12}},{"id":"d4ece9cc-291a-43dc-9e9b-c5934c5cac3a","block_type":"box","text":"troduced certain requirements in respect of","page_number":358,"box":{"x":529,"y":444,"width":332,"height":12}},{"id":"b3a7f1cb-d29a-4ba4-a136-71e027135ecf","block_type":"box","text":"OTC derivatives including: (i) the mandatory clearing","page_number":358,"box":{"x":116,"y":459,"width":405,"height":12}},{"id":"d0a8a34a-5e18-43bc-b063-3e3b155faeb5","block_type":"box","text":"of OTC derivative contracts declared subject to","page_number":358,"box":{"x":522,"y":459,"width":362,"height":12}},{"id":"2045a2bb-ae79-4748-a1b6-7374f37c2024","block_type":"box","text":"the clearing obligation; (ii) risk mitigation te","page_number":358,"box":{"x":116,"y":475,"width":325,"height":12}},{"id":"603c8875-013e-4e3d-bdf1-262f5e2b04a3","block_type":"box","text":"chniques in respect of uncleared OTC derivative","page_number":358,"box":{"x":442,"y":475,"width":372,"height":12}},{"id":"c518c723-feda-4738-9d99-3b681e9bf1a8","block_type":"box","text":"contracts, including the mandatory margining","page_number":358,"box":{"x":116,"y":490,"width":347,"height":12}},{"id":"804ccf03-8db0-4f03-98d3-9d8ebbc77100","block_type":"box","text":"of uncleared OTC derivative contracts; and","page_number":358,"box":{"x":463,"y":490,"width":332,"height":11}},{"id":"629cb208-a8e3-4eb9-a74f-738f8c634287","block_type":"box","text":"(iii) reporting and recordkeeping requirements in res","page_number":358,"box":{"x":117,"y":506,"width":393,"height":12}},{"id":"dd3a1d29-f732-4e2d-ab93-9346373339d3","block_type":"box","text":"pect of all derivatives contracts. By way of","page_number":358,"box":{"x":512,"y":506,"width":324,"height":12}},{"id":"56b991f4-c404-4e7d-b1ce-5f972f33ffbb","block_type":"box","text":"further example, the European Union Markets in","page_number":358,"box":{"x":116,"y":521,"width":365,"height":12}},{"id":"24239683-b8e4-437f-8dea-cf26243ed05d","block_type":"box","text":"Financial Instruments Directive (Directive","page_number":358,"box":{"x":482,"y":521,"width":322,"height":12}},{"id":"6d47f377-6515-415d-b3c6-01dd1ebaec2c","block_type":"box","text":"2014/65/EU) and Markets in Financial Instrument","page_number":358,"box":{"x":116,"y":537,"width":373,"height":12}},{"id":"0fccc803-f867-4b51-8b88-fe761753b68c","block_type":"box","text":"s Regulation (Regulation (EU) No 600/2014)","page_number":358,"box":{"x":490,"y":537,"width":341,"height":12}},{"id":"915cd23c-81fc-4123-8efd-d3f592546f95","block_type":"box","text":"(together “MiFID II”), which have applied since January","page_number":358,"box":{"x":117,"y":552,"width":422,"height":12}},{"id":"a61109c2-8e9a-4adf-8827-6fac6ee804ff","block_type":"box","text":"3, 2018, govern the provision of investment","page_number":358,"box":{"x":539,"y":552,"width":334,"height":12}},{"id":"43136324-55dd-454d-87f0-1acf269d9d44","block_type":"box","text":"services and activities in relation to, as well as","page_number":358,"box":{"x":116,"y":568,"width":351,"height":11}},{"id":"410ed119-cc8a-499a-bd62-8a91ec6661bc","block_type":"box","text":"the organized trading of, financial instruments such","page_number":358,"box":{"x":467,"y":568,"width":399,"height":12}},{"id":"31e22153-d3ef-46f6-9d7a-770310939297","block_type":"box","text":"as shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II","page_number":358,"box":{"x":116,"y":583,"width":728,"height":12}},{"id":"2a63ba7b-51d9-4f3c-912f-10ec2ec6b361","block_type":"box","text":"requires European Union Member States to apply positi","page_number":358,"box":{"x":117,"y":599,"width":420,"height":12}},{"id":"769cf8b9-abcf-480c-9dd6-98bd41aaea6f","block_type":"box","text":"on limits to the size of a net position a person","page_number":358,"box":{"x":539,"y":599,"width":349,"height":12}},{"id":"d37a8aab-edf2-4081-82cc-c65b01187025","block_type":"box","text":"can hold at any time in commodity derivatives traded on European Union trading venues and in","page_number":358,"box":{"x":116,"y":614,"width":727,"height":12}},{"id":"ee919f05-6565-4a59-b58d-c45d296cf761","block_type":"box","text":"“economically equivalent” OTC contracts. If the requi","page_number":358,"box":{"x":116,"y":630,"width":400,"height":12}},{"id":"f9582b79-9260-41e0-8d2d-cbdc05399223","block_type":"box","text":"rements of EMIR and MiFID II apply, the cost of","page_number":358,"box":{"x":518,"y":630,"width":366,"height":12}},{"id":"964b59bf-9a93-4b32-959e-3e14e94ac031","block_type":"box","text":"derivatives transactions is expected to increase.","page_number":358,"box":{"x":116,"y":645,"width":370,"height":12}},{"id":"afd26f67-cc94-4a8b-a05e-a75dba76fdb4","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain","page_number":358,"box":{"x":117,"y":676,"width":736,"height":12}},{"id":"233f2ae4-7519-485d-ad14-44e3cafe5f27","block_type":"box","text":"prudentially regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to","page_number":358,"box":{"x":117,"y":692,"width":758,"height":12}},{"id":"99376430-36b8-4c20-bf25-0bb433e9acf9","block_type":"box","text":"include in their derivatives contracts and certain other financial contracts, terms that delay or restrict","page_number":358,"box":{"x":117,"y":707,"width":740,"height":12}},{"id":"72ce3ef6-6edb-4ea4-9580-1a0faa091969","block_type":"box","text":"the rights of counterparties (such as the Funds) to terminate such contracts, foreclose upon collateral,","page_number":358,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"349f9958-bef7-45f8-b15a-da6c65e9c30e","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the prudentially","page_number":358,"box":{"x":116,"y":738,"width":721,"height":12}},{"id":"9ff02659-2a6b-49a6-a504-e8fa5a9698eb","block_type":"box","text":"regulated entity and/or its affiliates are subject to certain types of resolution or insolvency proceedings.","page_number":358,"box":{"x":117,"y":754,"width":759,"height":12}},{"id":"795c3b03-9148-4424-bb9e-1c3e0daa657a","block_type":"box","text":"Similar regulations and laws have been adopted in non-U.S. jurisdictions that may apply to a Fund’s","page_number":358,"box":{"x":116,"y":769,"width":741,"height":12}},{"id":"37aa321e-46d4-459e-a7f0-3e759cf15747","block_type":"box","text":"counterparties located in those jurisdictions. In particular, in the United Kingdom and the European","page_number":358,"box":{"x":116,"y":785,"width":731,"height":12}},{"id":"620aa97e-9d25-45a8-a899-80f0899299c7","block_type":"box","text":"Union, governmental authorities could reduce, eliminate or convert to equity the liabilities to a Fund of","page_number":358,"box":{"x":117,"y":800,"width":753,"height":12}},{"id":"affc9db4-241d-4e65-aa35-ef4b64c5ba5b","block_type":"box","text":"a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":358,"box":{"x":116,"y":816,"width":763,"height":12}},{"id":"c8766319-9ff4-421f-95c6-7043869a7732","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely","page_number":358,"box":{"x":116,"y":831,"width":731,"height":12}},{"id":"94f42c83-1640-4607-bd65-a77d000fa314","block_type":"box","text":"affect a Fund’s ability to terminate existing derivatives contracts, exercise default rights or satisfy","page_number":358,"box":{"x":116,"y":847,"width":721,"height":12}},{"id":"c9891718-a953-4ed5-bcaf-f120ccb09a45","block_type":"box","text":"obligations owed to it with collateral received under such contracts.","page_number":358,"box":{"x":116,"y":862,"width":502,"height":12}},{"id":"e8fcae39-81e8-430b-a365-89831730f897","block_type":"box","text":"II-19","page_number":358,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3af2d5d2-f000-41f7-a2f6-af4e5dbd679c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":358,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"89bb0fdc-c463-4bd9-be76-0c866a667e2f","block_type":"box","text":"Regulatory changes or actions may alter the nature of an investment in bitcoin or ether futures or","page_number":359,"box":{"x":117,"y":87,"width":723,"height":12}},{"id":"ea0b99b5-064c-4fdd-a39f-5cb016c4ea47","block_type":"box","text":"restrict the use of bitcoin or ether or the operations of digital asset networks or exchanges on which","page_number":359,"box":{"x":117,"y":102,"width":741,"height":13}},{"id":"a6da22c6-0006-4f93-a215-706db27fd990","block_type":"box","text":"bitcoin or ether trades in a manner that adversely affects the price of such digital asset futures, which","page_number":359,"box":{"x":117,"y":118,"width":754,"height":12}},{"id":"e861fc33-07de-4e52-93d8-32711a394b76","block_type":"box","text":"could adversely impact a Fund.","page_number":359,"box":{"x":116,"y":134,"width":237,"height":12}},{"id":"18044669-1635-437e-b63c-a5eb74217207","block_type":"box","text":"Risk Factors in Derivatives.","page_number":359,"box":{"x":116,"y":166,"width":208,"height":9}},{"id":"b2e26158-3119-436d-9e9e-ede8d83cea28","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":359,"box":{"x":116,"y":190,"width":627,"height":12}},{"id":"a6dee012-e92b-4847-8b91-ce3ab5f1718f","block_type":"box","text":"Correlation Risk —","page_number":359,"box":{"x":117,"y":222,"width":123,"height":9}},{"id":"6a8f4bb5-bd8e-4004-b1f2-e72dc84537b6","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the","page_number":359,"box":{"x":240,"y":222,"width":631,"height":12}},{"id":"25c097c4-3512-4a88-ae2d-62a1d5f53e43","block_type":"box","text":"value of the portfolio holdings that are being hedged or of the particular market or security to which the","page_number":359,"box":{"x":116,"y":237,"width":765,"height":12}},{"id":"8a18d3a2-56cd-4469-9550-69fe97ae6c3d","block_type":"box","text":"Fund seeks exposure. There are a number of factors which may prevent a derivative instrument from","page_number":359,"box":{"x":117,"y":253,"width":754,"height":12}},{"id":"5ef6c6e9-cdb8-46e8-a536-ade8fe0b1dd4","block_type":"box","text":"achieving the desired correlation (or inverse correlation) with an underlying asset, rate or index, such","page_number":359,"box":{"x":116,"y":268,"width":753,"height":12}},{"id":"43e246d0-3822-4171-a2d2-e0622752f188","block_type":"box","text":"as the impact of fees, expenses and transaction costs, the timing of pricing, and disruptions or illiquidity","page_number":359,"box":{"x":116,"y":284,"width":772,"height":12}},{"id":"d0f49c7c-0ccf-4dd5-90c6-1f0f36d78cbb","block_type":"box","text":"in the markets for such derivative instrument.","page_number":359,"box":{"x":117,"y":299,"width":338,"height":10}},{"id":"c1fa5fdf-1fe9-42e1-b92e-5ea151918d13","block_type":"box","text":"Counterparty Risk —","page_number":359,"box":{"x":117,"y":331,"width":138,"height":12}},{"id":"1fb756b5-3990-40d4-95ad-5de70880183d","block_type":"box","text":"—","page_number":359,"box":{"x":255,"y":337,"width":22,"height":4}},{"id":"e3006be1-28e2-42eb-9728-f67b921b44ea","block_type":"box","text":"the risk that a derivatives transaction counterparty will be unable or unwilling to","page_number":359,"box":{"x":277,"y":332,"width":590,"height":11}},{"id":"1521a98a-8d9c-4078-9c85-7a9c61b2d895","block_type":"box","text":"make payments or otherwise honor its obligations to a Fund and the related risks of having","page_number":359,"box":{"x":117,"y":347,"width":678,"height":12}},{"id":"2e9e2693-a436-45ba-9d49-63d2425eb37c","block_type":"box","text":"concentrated exposure to such a counterparty. In particular, derivatives traded in OTC markets often","page_number":359,"box":{"x":116,"y":362,"width":751,"height":12}},{"id":"1769be29-65c6-4537-ae30-276c6149b06b","block_type":"box","text":"are not guaranteed by an exchange or clearing corporation and often do not require payment of","page_number":359,"box":{"x":116,"y":378,"width":714,"height":12}},{"id":"dc1040a2-1109-4094-bbba-ac257fb91cad","block_type":"box","text":"margin, and to the extent that the Fund has unrealized gains in such instruments or has deposited","page_number":359,"box":{"x":117,"y":394,"width":732,"height":11}},{"id":"f49dd30d-b41c-4383-b5c5-0882cb153c9b","block_type":"box","text":"collateral with its counterparties the Fund is at risk that its counterparties will become bankrupt or","page_number":359,"box":{"x":116,"y":409,"width":725,"height":12}},{"id":"f3e6b6f8-1743-4a91-ac11-b53677478df6","block_type":"box","text":"otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":359,"box":{"x":116,"y":424,"width":750,"height":13}},{"id":"7b9e96ba-de01-4245-b596-30565f7176d5","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or","page_number":359,"box":{"x":116,"y":440,"width":768,"height":12}},{"id":"2c1e062d-1416-4134-a6d7-d0baf1e3ba09","block_type":"box","text":"that have provided the Fund with a third-party guaranty or other credit support. When a Fund enters","page_number":359,"box":{"x":116,"y":456,"width":745,"height":12}},{"id":"7ec30c2a-2277-4a2b-805e-3e4932fcea7a","block_type":"box","text":"into a derivatives transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is","page_number":359,"box":{"x":117,"y":471,"width":754,"height":12}},{"id":"258596a1-8f31-4b1a-bbea-98930eb9f59d","block_type":"box","text":"subject to the credit risk of the clearing house and the clearing member through which it holds its","page_number":359,"box":{"x":116,"y":486,"width":722,"height":13}},{"id":"d40baa24-f3cb-4045-a5b8-57ef719f213c","block_type":"box","text":"cleared position. Credit risk of market participants with respect to derivatives that are centrally cleared","page_number":359,"box":{"x":116,"y":502,"width":761,"height":12}},{"id":"0a533299-013d-45f9-9915-59879d8dd615","block_type":"box","text":"is concentrated in a few clearing houses and increasingly fewer clearing members. It is not clear how","page_number":359,"box":{"x":117,"y":517,"width":754,"height":13}},{"id":"7e3a8c4c-b0df-451b-b9aa-8e72fa0ea49c","block_type":"box","text":"an insolvency proceeding of a clearing house would be conducted and what impact an insolvency of a","page_number":359,"box":{"x":116,"y":533,"width":762,"height":12}},{"id":"2edef310-ecf3-4b7d-afba-3dd2cc98deb8","block_type":"box","text":"clearing house would have on the financial system. Also, a Fund will not be fully protected in the event","page_number":359,"box":{"x":116,"y":548,"width":764,"height":13}},{"id":"ebe7994c-1488-41dc-85bb-eca3c00825c8","block_type":"box","text":"of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":359,"box":{"x":116,"y":564,"width":768,"height":12}},{"id":"2d845289-7688-4b45-8a93-18eac3b5042e","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for","page_number":359,"box":{"x":117,"y":579,"width":747,"height":13}},{"id":"9fe7604c-fedb-473c-a32b-d6c904d8b465","block_type":"box","text":"cleared derivatives. Although a clearing member is required to segregate assets from customers with","page_number":359,"box":{"x":116,"y":595,"width":755,"height":12}},{"id":"0e0c674e-af8c-411b-bcb3-cf501af01eff","block_type":"box","text":"respect to cleared derivatives positions from the clearing member’s proprietary assets, if a clearing","page_number":359,"box":{"x":117,"y":610,"width":736,"height":13}},{"id":"bb0963ff-7710-4c12-993f-352672254f04","block_type":"box","text":"member does not comply with the applicable regulations, or in the event of fraud or misappropriation of","page_number":359,"box":{"x":117,"y":626,"width":768,"height":12}},{"id":"e0415df7-583a-4baa-964f-54b5b3d8b348","block_type":"box","text":"customer assets by a clearing member, a Fund could have only an unsecured creditor claim in an","page_number":359,"box":{"x":116,"y":642,"width":730,"height":12}},{"id":"08858a9a-a1fc-4eed-83bd-b2dc5a87a135","block_type":"box","text":"insolvency of the clearing member with respect to the assets held by the clearing member.","page_number":359,"box":{"x":117,"y":657,"width":675,"height":12}},{"id":"c6a6a0c5-c534-4f47-93dc-2c963148b8f8","block_type":"box","text":"Credit Risk","page_number":359,"box":{"x":117,"y":689,"width":82,"height":10}},{"id":"c193c68a-07c8-44a8-8a99-6bc37f76a15f","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be","page_number":359,"box":{"x":203,"y":689,"width":663,"height":12}},{"id":"e98f7893-fc06-445a-8a3b-c470317f1ac9","block_type":"box","text":"able to honor its financial obligations.","page_number":359,"box":{"x":116,"y":705,"width":274,"height":12}},{"id":"500d76eb-aaa2-4406-a188-8438a6ffc959","block_type":"box","text":"Currency Risk","page_number":359,"box":{"x":117,"y":737,"width":105,"height":12}},{"id":"b7639f58-6651-469d-9773-c56880c746f6","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely","page_number":359,"box":{"x":226,"y":737,"width":620,"height":12}},{"id":"838b282a-7e41-428f-8766-9192bbdcdc1f","block_type":"box","text":"affect the value (in U.S. dollar terms) of a derivative.","page_number":359,"box":{"x":116,"y":752,"width":386,"height":12}},{"id":"e18f4d94-64ce-4e69-927b-dceb072cd85e","block_type":"box","text":"Illiquidity Risk","page_number":359,"box":{"x":117,"y":785,"width":101,"height":12}},{"id":"3530fb18-5711-4d77-9d84-1547de1b959b","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at","page_number":359,"box":{"x":222,"y":784,"width":639,"height":13}},{"id":"b1b51feb-2d0b-4a71-842a-3e106e3f1844","block_type":"box","text":"the time or at the price desired by a Fund in connection with payments of margin, collateral, or","page_number":359,"box":{"x":116,"y":800,"width":699,"height":12}},{"id":"844cf243-a9bc-4355-99b2-f624f71e33a5","block_type":"box","text":"settlement payments. There can be no assurance that a Fund will be able to unwind or offset a","page_number":359,"box":{"x":116,"y":815,"width":703,"height":13}},{"id":"dd262825-956e-4d2f-a5d2-6bc5bcc90c9f","block_type":"box","text":"derivative at its desired price, in a secondary market or otherwise. It may, therefore, not be possible for","page_number":359,"box":{"x":116,"y":831,"width":768,"height":12}},{"id":"3edb3449-264a-42d2-b3c8-70e82e16ce0c","block_type":"box","text":"the Fund to unwind its position in a derivative without incurring substantial losses (if at all). Certain","page_number":359,"box":{"x":116,"y":846,"width":733,"height":13}},{"id":"48f91c88-86a5-485e-bace-d71272e107e6","block_type":"box","text":"OTC derivatives, including swaps and OTC options, involve substantial illiquidity risk. Illiquidity may","page_number":359,"box":{"x":116,"y":862,"width":741,"height":12}},{"id":"450d3539-bc5b-494b-82eb-3f9b74214867","block_type":"box","text":"also make it more difficult for a Fund to ascertain a market value for such derivatives. A Fund will,","page_number":359,"box":{"x":116,"y":877,"width":729,"height":12}},{"id":"6a188e2f-055a-47d1-bcec-195751d56fcf","block_type":"box","text":"II-20","page_number":359,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ed0678ec-1200-4bc3-86ef-e9d84e46a660","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":359,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e88bdcef-b53f-4a63-a0df-0984d926e431","block_type":"box","text":"therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":360,"box":{"x":116,"y":87,"width":724,"height":12}},{"id":"4c212734-49cf-42af-939a-886c610279fa","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which","page_number":360,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"a2a56349-8d9e-4fc9-8239-333e46f23717","block_type":"box","text":"the Manager anticipates the Fund can receive on each business day at least two independent bids or","page_number":360,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"96e5338b-8a30-49d5-b12d-3c152743b183","block_type":"box","text":"offers, unless a quotation from only one dealer is available, in which case that dealer’s quotation may","page_number":360,"box":{"x":116,"y":134,"width":756,"height":12}},{"id":"04547179-bc8e-4c32-8444-8160edbd1698","block_type":"box","text":"be used. The illiquidity of the derivatives markets may be due to various factors, including congestion,","page_number":360,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"11d7a573-7a0a-4564-95cd-9bb4331ff830","block_type":"box","text":"disorderly markets, limitations on deliverable supplies, the participation of speculators, government","page_number":360,"box":{"x":116,"y":165,"width":738,"height":12}},{"id":"754b1bae-23d3-428f-a537-970fb40ab9f3","block_type":"box","text":"regulation and intervention, and technical and operational or system failures. In addition, the liquidity of","page_number":360,"box":{"x":117,"y":180,"width":767,"height":12}},{"id":"67d7b3dd-5b28-4ef5-9a53-eb5f2a5ad20b","block_type":"box","text":"a market in an exchange-traded derivative contract may be adversely affected by “daily price","page_number":360,"box":{"x":116,"y":196,"width":693,"height":12}},{"id":"b9aada53-31b1-442c-8c7c-745d516b674d","block_type":"box","text":"fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":360,"box":{"x":116,"y":211,"width":747,"height":12}},{"id":"e5b11d05-eb5c-4557-8ad1-de2b267e57cd","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract,","page_number":360,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"0b676105-1fdf-483d-977a-f886a21a612c","block_type":"box","text":"no trades may be entered into at a price beyond the limit, thus preventing the liquidation of open","page_number":360,"box":{"x":117,"y":242,"width":717,"height":12}},{"id":"e5a68426-c598-40b7-91f8-723ce15837f8","block_type":"box","text":"positions. Prices have in the past moved to the daily limit on a number of consecutive trading days with","page_number":360,"box":{"x":117,"y":258,"width":768,"height":12}},{"id":"13d7453e-b482-4303-94f9-2f7812ef906e","block_type":"box","text":"little to no trading. If it is not possible to close an open derivative position entered into by the Fund, the","page_number":360,"box":{"x":117,"y":273,"width":762,"height":12}},{"id":"efffd241-5522-4b8d-ae57-bc1ad03c506c","block_type":"box","text":"Fund would continue to be required to make daily cash payments of variation margin in the event of","page_number":360,"box":{"x":117,"y":289,"width":743,"height":12}},{"id":"b4197b59-29b5-4be4-8aa0-6d0ce784655f","block_type":"box","text":"adverse price movements. In such a situation, if the Fund has insufficient cash, it may have to sell","page_number":360,"box":{"x":116,"y":304,"width":732,"height":12}},{"id":"78be901f-509a-4427-81a7-cc0a20333272","block_type":"box","text":"portfolio securities to meet daily variation margin requirements at a time when it may be","page_number":360,"box":{"x":117,"y":320,"width":654,"height":12}},{"id":"ca5c12f1-16dc-492e-87dd-d7204a6b888c","block_type":"box","text":"disadvantageous to do so. Fund’s investment in digital asset futures may involve illiquidity risk, as","page_number":360,"box":{"x":116,"y":335,"width":729,"height":12}},{"id":"821cdd8c-ee92-4cf2-8c73-62056ef653a9","block_type":"box","text":"digital asset futures are not as heavily traded as other futures given that the digital asset futures market","page_number":360,"box":{"x":116,"y":351,"width":772,"height":12}},{"id":"7322a845-2bf9-43fc-bf85-8f57cbc324ca","block_type":"box","text":"is relatively new.","page_number":360,"box":{"x":117,"y":366,"width":127,"height":12}},{"id":"3584527a-9334-42ae-bf0d-513299510728","block_type":"box","text":"Index Risk","page_number":360,"box":{"x":117,"y":397,"width":78,"height":10}},{"id":"0007011f-b269-4dc2-a863-16a796b56397","block_type":"box","text":"k — if the derivative is linked to the performance of an index, it will be subject to the risks","page_number":360,"box":{"x":194,"y":397,"width":656,"height":12}},{"id":"315c76a4-c2ab-4c2b-9b34-3b177569b189","block_type":"box","text":"associated with changes in that index. If the index changes, the Fund could receive lower interest","page_number":360,"box":{"x":116,"y":413,"width":728,"height":12}},{"id":"11eb9424-ec1f-4b2e-a4ab-fdded64925ec","block_type":"box","text":"payments or experience a reduction in the value of the derivative to below the price that the Fund paid","page_number":360,"box":{"x":117,"y":428,"width":762,"height":12}},{"id":"1c7c3587-6e59-4efa-a5dc-978898715ea5","block_type":"box","text":"for such derivative.","page_number":360,"box":{"x":116,"y":444,"width":146,"height":9}},{"id":"58de2bf9-5807-4e37-9433-fc6044093d8e","block_type":"box","text":"Legal Risk","page_number":360,"box":{"x":116,"y":475,"width":79,"height":12}},{"id":"ecf318e7-b559-46ee-81d7-706bdf280890","block_type":"box","text":"k — the risk of insufficient documentation, insufficient capacity or authority of counterparty, or","page_number":360,"box":{"x":194,"y":475,"width":689,"height":12}},{"id":"f4615e74-9aad-4bb3-bed0-9c146e74bf6c","block_type":"box","text":"legality or enforceability of a contract.","page_number":360,"box":{"x":117,"y":490,"width":281,"height":12}},{"id":"fe1112fb-9870-4c90-af7a-6a62c5555db6","block_type":"box","text":"Leverage Risk —","page_number":360,"box":{"x":116,"y":521,"width":112,"height":12}},{"id":"629202ba-a3e8-4169-b60d-5a3323cd24e0","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and","page_number":360,"box":{"x":228,"y":521,"width":619,"height":12}},{"id":"f7eb6be7-c791-4d51-b92b-7947b4145387","block_type":"box","text":"losses. Relatively small market movements may result in large changes in the value of a derivatives","page_number":360,"box":{"x":117,"y":537,"width":744,"height":12}},{"id":"31b4a479-8ca7-452f-8aa0-f5e99738a670","block_type":"box","text":"position and can result in losses that greatly exceed the amount originally invested.","page_number":360,"box":{"x":117,"y":552,"width":621,"height":12}},{"id":"f88a2085-35b7-4ef2-9939-42d40e6fa11f","block_type":"box","text":"Market Risk —","page_number":360,"box":{"x":116,"y":583,"width":93,"height":10}},{"id":"1ece9709-6274-4bd7-87e3-5b5be19709d2","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to","page_number":360,"box":{"x":209,"y":583,"width":653,"height":12}},{"id":"80eba23a-8842-43ed-9fa2-0b0002326471","block_type":"box","text":"the value of the underlying asset will adversely affect the value of a derivative. In the event of an","page_number":360,"box":{"x":116,"y":599,"width":719,"height":12}},{"id":"cd33544e-4d48-40ab-bf8f-28af33c43f31","block_type":"box","text":"adverse movement, a Fund may be required to pay substantial additional margin to maintain its","page_number":360,"box":{"x":116,"y":614,"width":713,"height":12}},{"id":"94e176ae-0dd2-47de-a807-b9277d198b19","block_type":"box","text":"position or the Fund’s returns may be adversely affected.","page_number":360,"box":{"x":117,"y":630,"width":427,"height":12}},{"id":"9f359d23-753b-4868-8d2e-5d3a0542e399","block_type":"box","text":"Operational Risk","page_number":360,"box":{"x":117,"y":661,"width":124,"height":12}},{"id":"6244b670-fe34-4b2c-b11c-944a1415fe72","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues,","page_number":360,"box":{"x":245,"y":661,"width":605,"height":12}},{"id":"6092c28b-97b9-4ad7-bac4-7b5323814a08","block_type":"box","text":"settlement issues, systems failures, inadequate controls and human error.","page_number":360,"box":{"x":116,"y":676,"width":548,"height":12}},{"id":"d04e55b5-2509-4df0-9017-f30ff08b6c0a","block_type":"box","text":"Valuation Risk","page_number":360,"box":{"x":118,"y":707,"width":106,"height":10}},{"id":"63016f87-bc14-489f-a728-05b8b82bad90","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the","page_number":360,"box":{"x":228,"y":707,"width":609,"height":12}},{"id":"782650e8-0d83-44f4-88d6-3ddd5a700ed7","block_type":"box","text":"market. This is possible especially in times of market distress, since many market participants may be","page_number":360,"box":{"x":117,"y":723,"width":754,"height":12}},{"id":"451f2114-2dc3-41b4-8f30-2079544dfb21","block_type":"box","text":"reluctant to purchase complex instruments or quote prices for them. Exchanges where bitcoin or ether","page_number":360,"box":{"x":117,"y":738,"width":757,"height":12}},{"id":"8696f590-94be-4f1f-8432-bac9842ce4ec","block_type":"box","text":"is traded (which are the source of the price(s) used to determine the cash settlement amount for a","page_number":360,"box":{"x":117,"y":754,"width":726,"height":12}},{"id":"c33ced2f-22a2-4579-bc39-e0669def7f48","block_type":"box","text":"Fund’s bitcoin or ether futures) have experienced technical and operational issues, making bitcoin","page_number":360,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"6618c14f-d7c2-4401-af5e-86d02cffd738","block_type":"box","text":"prices unavailable at times. In addition, the cash market in bitcoin or ether has been the target of fraud","page_number":360,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"3e1b137d-224f-4ff1-b34c-3938f7d90c83","block_type":"box","text":"and manipulation, which could affect the pricing of bitcoin or ether futures contracts.","page_number":360,"box":{"x":116,"y":800,"width":620,"height":12}},{"id":"ea5458ff-ecc8-429b-9799-fff4a127d7ec","block_type":"box","text":"Volatility Risk —","page_number":360,"box":{"x":118,"y":831,"width":102,"height":12}},{"id":"8a4f728a-7fa6-4b25-9800-069ba091452c","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time","page_number":360,"box":{"x":220,"y":831,"width":619,"height":12}},{"id":"fddfa245-ca5e-4ff7-971d-208160ce970a","block_type":"box","text":"period. In particular, bitcoin, ether, bitcoin futures and ether futures have generally exhibited significant","page_number":360,"box":{"x":117,"y":847,"width":765,"height":12}},{"id":"0a80092e-33e4-45dd-b942-5c36a5ebc375","block_type":"box","text":"price volatility relative to more traditional asset classes. Bitcoin and ether futures may also experience","page_number":360,"box":{"x":117,"y":862,"width":759,"height":12}},{"id":"e8f928bd-fab9-49c2-bddc-a3d6caef3165","block_type":"box","text":"significant price volatility as a result of the market fraud and manipulation noted above.","page_number":360,"box":{"x":116,"y":878,"width":648,"height":12}},{"id":"d116982a-4445-4c40-88a3-a638bc16d4c2","block_type":"box","text":"II-21","page_number":360,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"782b0b45-56dd-4167-a446-e971a020b850","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":360,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"824161cb-7581-45a0-9837-476c642e774b","block_type":"box","text":"Types of Derivatives Transactions.","page_number":361,"box":{"x":118,"y":87,"width":261,"height":12}},{"id":"056d232f-04db-442a-9ca7-3590ab4f74ec","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and","page_number":361,"box":{"x":116,"y":110,"width":715,"height":12}},{"id":"6a382d0b-d7b4-460d-8815-b21c1624e6c2","block_type":"box","text":"restrictions, including the following:","page_number":361,"box":{"x":117,"y":126,"width":263,"height":12}},{"id":"bd99f8ff-4ab7-42a6-b5c5-29c24737c1da","block_type":"box","text":"Futures.","page_number":361,"box":{"x":116,"y":157,"width":66,"height":9}},{"id":"573f9e1b-8a4c-464a-800f-5d037399e528","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are","page_number":361,"box":{"x":116,"y":180,"width":718,"height":12}},{"id":"32f8d260-3c81-4943-83a4-64f5444a7519","block_type":"box","text":"standardized, exchange-traded contracts that require a purchaser to take delivery, and a seller to make","page_number":361,"box":{"x":116,"y":196,"width":772,"height":12}},{"id":"66a5d9ed-4b9a-4979-9b36-c3b8a76e3d17","block_type":"box","text":"delivery, of a specified amount of an asset at a specified future date and price. Upon purchasing or","page_number":361,"box":{"x":116,"y":211,"width":738,"height":12}},{"id":"ad901aee-37ee-4769-8e46-8a6ac4c99dcf","block_type":"box","text":"selling a futures contract, a Fund is required to deposit initial margin equal to a percentage of the","page_number":361,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"e3d046ba-b444-4304-a5cf-21470ed9ac61","block_type":"box","text":"contract value. Futures contracts are marked to market daily for the duration of the contract, and the","page_number":361,"box":{"x":116,"y":242,"width":748,"height":12}},{"id":"d19f39bb-bd2b-4767-aec9-e3d3aa77c890","block_type":"box","text":"Fund will either post additional margin or be entitled to a payment, as applicable, based on the","page_number":361,"box":{"x":117,"y":258,"width":704,"height":12}},{"id":"664df570-55a0-4000-aed5-2e8f15a3b9f4","block_type":"box","text":"mark-to-market movement of the contract.","page_number":361,"box":{"x":117,"y":273,"width":317,"height":10}},{"id":"d75c8993-5572-413c-bc52-58737c1a7233","block_type":"box","text":"A Fund may sell a futures contract prior to the completion","page_number":361,"box":{"x":116,"y":304,"width":431,"height":12}},{"id":"9690fee2-3a91-4d56-af44-931d6ba4d616","block_type":"box","text":"of its term to limit its risk of loss from a","page_number":361,"box":{"x":548,"y":304,"width":290,"height":10}},{"id":"39754d5b-9da4-4553-9d14-9eafc81426b6","block_type":"box","text":"decline in the market value of portfolio holdings correlated with the futures contract. However, in the","page_number":361,"box":{"x":116,"y":320,"width":745,"height":12}},{"id":"b02c9622-3ab8-4217-b01e-a8b3deaf3d3b","block_type":"box","text":"event the market value of the portfolio holdings correlated with the futures contract increases rather","page_number":361,"box":{"x":116,"y":335,"width":742,"height":12}},{"id":"f1dca228-5bcb-499f-b3a8-41743a067656","block_type":"box","text":"than decreases, a Fund will realize a loss on the futures position and a lower return on the portfolio","page_number":361,"box":{"x":116,"y":351,"width":739,"height":12}},{"id":"5abd9bd2-0884-4b57-a1ea-0750a3ea8eeb","block_type":"box","text":"holdings than would have been realized without the purchase of the futures contract.","page_number":361,"box":{"x":117,"y":366,"width":631,"height":12}},{"id":"03c53df3-70d6-4d86-a317-55ad01d39043","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing","page_number":361,"box":{"x":116,"y":397,"width":697,"height":12}},{"id":"423b2f80-85e1-4f80-ac08-5164a286f42c","block_type":"box","text":"securities or commodities directly. In the event that such securities or commodities decline in value or a","page_number":361,"box":{"x":116,"y":413,"width":772,"height":12}},{"id":"385d2cb6-f2db-460a-94cf-bf94e857d7ce","block_type":"box","text":"Fund determines not to complete an anticipatory hedge transaction relating to a futures contract,","page_number":361,"box":{"x":117,"y":428,"width":720,"height":12}},{"id":"950399cc-b4b1-4b69-b9cc-18144dd1382a","block_type":"box","text":"however, the Fund may realize a loss relating to the futures position.","page_number":361,"box":{"x":117,"y":444,"width":512,"height":12}},{"id":"308de884-ec19-419d-8492-2d72aaccd755","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may","page_number":361,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"20d210de-db05-49f4-9e0b-d99dfbc805b9","block_type":"box","text":"be required to liquidate positions or may not be able to fully implement trading instructions. Any such","page_number":361,"box":{"x":117,"y":490,"width":750,"height":12}},{"id":"9273c50b-76d1-40aa-9f79-30845074439b","block_type":"box","text":"liquidation or limited implementation could result in substantial costs to a Fund. See “— Regulation of","page_number":361,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"2d510e8b-d144-4b0a-a3ca-5f745214b76d","block_type":"box","text":"Derivatives — Dodd-Frank Regulations” above.","page_number":361,"box":{"x":117,"y":521,"width":356,"height":12}},{"id":"828ed64a-0acc-4ce7-87bd-f2f2f0b132de","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including","page_number":361,"box":{"x":116,"y":552,"width":706,"height":12}},{"id":"ce8cc4ed-3550-4917-8e5a-723f88367e2a","block_type":"box","text":"financial futures and stock indices. Generally, these strategies would be used under the same market","page_number":361,"box":{"x":116,"y":568,"width":757,"height":12}},{"id":"f2ec6adf-db89-490d-8be7-a50cda8f9986","block_type":"box","text":"and market sector conditions (","page_number":361,"box":{"x":116,"y":583,"width":225,"height":12}},{"id":"9ca91abb-03e5-4f1d-9a25-000dd98ec797","block_type":"box","text":"i.e.","page_number":361,"box":{"x":342,"y":583,"width":20,"height":10}},{"id":"670eec0a-bccf-41ca-98b1-33dcb6ee9b3a","block_type":"box","text":", conditions relating to specific types of investments) in which the","page_number":361,"box":{"x":365,"y":583,"width":485,"height":12}},{"id":"750b5cc8-2911-42d1-a6ff-a67732ea2447","block_type":"box","text":"Fund entered into futures transactions. A Fund may purchase put options or write call options on","page_number":361,"box":{"x":117,"y":599,"width":720,"height":12}},{"id":"102b65e7-4269-4dae-9fec-3489e883afd9","block_type":"box","text":"futures contracts and stock indices in lieu of selling the underlying futures contract in anticipation of a","page_number":361,"box":{"x":116,"y":614,"width":754,"height":12}},{"id":"d33a9ea1-7142-42a8-bceb-3494e1bb65e3","block_type":"box","text":"decrease in the market value of its securities. Similarly, a Fund can purchase call options, or write put","page_number":361,"box":{"x":116,"y":630,"width":759,"height":12}},{"id":"b8838467-104a-40be-a197-53d9a50d57a1","block_type":"box","text":"options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":361,"box":{"x":116,"y":645,"width":705,"height":12}},{"id":"471e0a31-4911-46a2-b64a-4d4b5c2f0ec6","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of","page_number":361,"box":{"x":116,"y":661,"width":703,"height":12}},{"id":"6b00c021-d67d-4352-ada0-127f8bede957","block_type":"box","text":"securities which the Fund intends to purchase.","page_number":361,"box":{"x":116,"y":676,"width":344,"height":12}},{"id":"3a08e731-293b-4bb0-a0d2-f3ff9956ba85","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to","page_number":361,"box":{"x":116,"y":707,"width":743,"height":12}},{"id":"7cfae6c3-57b5-4232-8729-b88d989012c3","block_type":"box","text":"futures contracts. These instruments may take a variety of forms, such as debt securities with interest","page_number":361,"box":{"x":116,"y":723,"width":754,"height":12}},{"id":"c2a0ea9e-334b-432d-b2c9-06d04dfaae51","block_type":"box","text":"or principal payments determined by reference to the value of a security, an index of securities or a","page_number":361,"box":{"x":116,"y":738,"width":735,"height":12}},{"id":"76a237c0-f236-45cc-8a1a-798bb07fed3c","block_type":"box","text":"commodity at a future point in time. The risks of such investments could reflect the risks of investing in","page_number":361,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"65434d80-ebc9-4f03-a4df-ea7f96e59bba","block_type":"box","text":"futures and securities, including volatility and illiquidity.","page_number":361,"box":{"x":116,"y":769,"width":404,"height":12}},{"id":"b6f8615b-5b64-47a2-a807-5abe8a13d8a7","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage","page_number":361,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"3f5962fb-148e-43a3-aa2b-f74703a8379f","block_type":"box","text":"risk, illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the","page_number":361,"box":{"x":117,"y":816,"width":721,"height":12}},{"id":"c0b8ad99-e02f-4ae5-bc43-1ef523fa6b6b","block_type":"box","text":"clearinghouse. See “— Risk Factors in Derivatives” above.","page_number":361,"box":{"x":116,"y":831,"width":440,"height":12}},{"id":"036a51aa-a881-48f7-86a3-79d1d0663b7d","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a","page_number":361,"box":{"x":117,"y":862,"width":771,"height":12}},{"id":"919c41a4-4a62-4040-ad2f-ead8d61781e2","block_type":"box","text":"limit is set by a regulator, such as a government entity, on the total amount of specific greenhouse","page_number":361,"box":{"x":117,"y":878,"width":732,"height":12}},{"id":"bb452b09-0f00-4b6a-983c-a798f22e864d","block_type":"box","text":"II-22","page_number":361,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"5ed0b58e-3aba-422f-a779-87ceaca5be2c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":361,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"005233d3-d89b-43c6-9422-5c616c3aaf84","block_type":"box","text":"gases, such as CO2, that can be emitted by regulated entities, such as manufacturers or energy","page_number":362,"box":{"x":116,"y":87,"width":720,"height":12}},{"id":"31b05628-b5e4-4a06-8aff-d443a39ff589","block_type":"box","text":"producers. The regulator then may issue or sell individual “emission allowances” to regulated entities,","page_number":362,"box":{"x":117,"y":102,"width":756,"height":13}},{"id":"7a08ae3d-716d-4c8d-b743-c28d3544c834","block_type":"box","text":"which can then be traded on the open market. Commodity futures contracts linked to the value of","page_number":362,"box":{"x":116,"y":118,"width":725,"height":12}},{"id":"b0fb2851-4b3f-4842-96c6-1165ca4705e4","block_type":"box","text":"emission allowances are known as “carbon futures.”","page_number":362,"box":{"x":116,"y":134,"width":392,"height":9}},{"id":"665ec3ae-c199-4954-bf1c-4edf193cc785","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the","page_number":362,"box":{"x":116,"y":166,"width":762,"height":12}},{"id":"8c1bb55d-5a0e-497f-bca5-b8118bd84df5","block_type":"box","text":"demand for carbon futures contracts. Changes in law, market conditions and expectations, position","page_number":362,"box":{"x":116,"y":182,"width":740,"height":12}},{"id":"f765b528-5630-429e-bc7b-a31113094461","block_type":"box","text":"limits, collateral requirements, and other factors each can impact the supply of and demand for carbon","page_number":362,"box":{"x":117,"y":197,"width":763,"height":12}},{"id":"29ff8f69-1a61-4416-a1d5-af4e8ba7ab30","block_type":"box","text":"futures contracts. The market for carbon futures contracts is still developing and may be subject to","page_number":362,"box":{"x":116,"y":213,"width":735,"height":12}},{"id":"d5840007-f0f8-40c9-b9a7-74ea8e7cddcd","block_type":"box","text":"periods of illiquidity. During such times it may be difficult or impossible to buy or sell a position at the","page_number":362,"box":{"x":117,"y":228,"width":747,"height":12}},{"id":"7534a157-00ff-4b94-9191-6f8d1a011937","block_type":"box","text":"desired price. Market disruptions or volatility can also make it difficult to find a counterparty willing to","page_number":362,"box":{"x":116,"y":244,"width":747,"height":12}},{"id":"186f8d45-c248-47cb-bafd-9d2d5a1b4a33","block_type":"box","text":"transact at a reasonable price and sufficient size.","page_number":362,"box":{"x":116,"y":259,"width":369,"height":12}},{"id":"5a74b929-57cb-4a83-9c15-93f303821912","block_type":"box","text":"Swap Agreements.","page_number":362,"box":{"x":117,"y":292,"width":145,"height":12}},{"id":"be9864c0-690b-4197-9ad4-480c1fc6e873","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap","page_number":362,"box":{"x":116,"y":316,"width":704,"height":12}},{"id":"314a91fb-177b-4ad0-b97f-877448c99713","block_type":"box","text":"agreements are OTC contracts entered into primarily by financial institutions and institutional investors","page_number":362,"box":{"x":116,"y":332,"width":764,"height":12}},{"id":"a8d1a020-1dec-4e17-9818-0751c757dc66","block_type":"box","text":"which may or may not be cleared by a central clearinghouse. In a standard “swap” transaction, two","page_number":362,"box":{"x":116,"y":347,"width":738,"height":12}},{"id":"40bfff3d-84d7-4fb6-95f8-0958242ff253","block_type":"box","text":"parties agree to exchange the returns earned or realized from one or more underlying assets or rates","page_number":362,"box":{"x":117,"y":363,"width":755,"height":12}},{"id":"24708015-b1f9-4c71-af5a-516873f8c737","block_type":"box","text":"of return, which may be adjusted for an interest factor. The gross returns to be exchanged or","page_number":362,"box":{"x":116,"y":378,"width":693,"height":12}},{"id":"06e26a6d-80fc-49bf-8a70-6541ee05e9d9","block_type":"box","text":"“swapped” between the parties are generally calculated with respect to a “notional amount,”","page_number":362,"box":{"x":116,"y":394,"width":684,"height":12}},{"id":"5de2bc18-ba1a-4c88-a4a0-908df295dcd9","block_type":"box","text":"e.g.","page_number":362,"box":{"x":801,"y":396,"width":26,"height":10}},{"id":"8a606d34-dc1c-4599-a6d9-70a6ad4de416","block_type":"box","text":", the","page_number":362,"box":{"x":830,"y":394,"width":36,"height":11}},{"id":"b841c6fc-17f3-4e57-820c-1060c0370008","block_type":"box","text":"return or increase in value of a particular dollar amount invested at a particular interest rate, in a","page_number":362,"box":{"x":117,"y":409,"width":716,"height":12}},{"id":"45073e1b-606f-429d-bd9f-bd2d07ece04e","block_type":"box","text":"particular foreign currency, or in a “basket” of securities representing a particular index. The notional","page_number":362,"box":{"x":117,"y":425,"width":747,"height":12}},{"id":"8a6369cc-7077-4c7f-9dfd-be737ed3f3c2","block_type":"box","text":"amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":362,"box":{"x":116,"y":440,"width":726,"height":12}},{"id":"6b0bd4d7-a8db-40c7-81ba-d4e838bb1642","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will","page_number":362,"box":{"x":116,"y":456,"width":736,"height":12}},{"id":"7c51bb35-5092-4e11-be45-8278ddad1b20","block_type":"box","text":"generally be equal only to the net amount to be paid or received under the agreement based on the","page_number":362,"box":{"x":116,"y":471,"width":743,"height":12}},{"id":"69b7bcc6-9dbe-47d7-8f19-7390df0397c4","block_type":"box","text":"relative values of the positions held by each party to the agreement. Swaps that are not cleared involve","page_number":362,"box":{"x":117,"y":487,"width":770,"height":12}},{"id":"227168e9-c1f0-42ef-a6ae-98ee0c4df0fb","block_type":"box","text":"substantial counterparty risk. A Fund will typically attempt to mitigate this counterparty risk by entering","page_number":362,"box":{"x":116,"y":502,"width":761,"height":12}},{"id":"3a82b67f-cdd6-4137-ba0f-8d9f418d6d87","block_type":"box","text":"into swap agreements only with creditworthy entities that have substantial capital or that have provided","page_number":362,"box":{"x":117,"y":518,"width":767,"height":12}},{"id":"d0f46590-d328-42a0-ba2e-b0b1b64e93d5","block_type":"box","text":"the Fund with a third-party guaranty or other credit support. A Fund’s ability to use swap agreements","page_number":362,"box":{"x":116,"y":533,"width":751,"height":12}},{"id":"57d8b21e-4fa2-4457-933f-43413906b07c","block_type":"box","text":"may be restricted by the tax rules applicable to registered investment companies.","page_number":362,"box":{"x":117,"y":549,"width":607,"height":12}},{"id":"e3922870-c0db-4b5b-9bdc-2239cc3647d0","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":362,"box":{"x":117,"y":581,"width":348,"height":12}},{"id":"5d5d0e26-6b1b-4810-9f26-aaf5c4aad755","block_type":"box","text":"Certain Funds may enter into credit default swaps and","page_number":362,"box":{"x":466,"y":581,"width":407,"height":12}},{"id":"b9d7e8cd-df40-4b90-bf66-34c4c8aab4bf","block_type":"box","text":"similar instruments. Credit default swaps are standardized agreements in which the protection “buyer”","page_number":362,"box":{"x":116,"y":597,"width":760,"height":12}},{"id":"d7ee1d98-0e37-4631-94ec-2fe795d38bb1","block_type":"box","text":"pays the protection “seller” an up-front payment, or a periodic stream of payments, over the term of the","page_number":362,"box":{"x":117,"y":612,"width":768,"height":12}},{"id":"908ea11c-8ee1-4638-b825-91ca7e365a43","block_type":"box","text":"contract, provided generally that no credit event on a reference obligation has occurred. If a credit","page_number":362,"box":{"x":116,"y":628,"width":730,"height":12}},{"id":"a020d14b-0a85-49df-bcda-9c502fe3caa6","block_type":"box","text":"event occurs, the seller generally must pay the buyer the difference between the notional amount of","page_number":362,"box":{"x":116,"y":643,"width":745,"height":12}},{"id":"81b55c0c-2e53-4561-b0ed-0c9374679e33","block_type":"box","text":"the contract and the value of a portfolio of securities issued by the reference entity. A Fund may be","page_number":362,"box":{"x":116,"y":659,"width":738,"height":12}},{"id":"51263c47-8e0b-4afc-9392-99fde211653b","block_type":"box","text":"either the buyer or seller in the transaction. The Funds may enter into credit default swaps that","page_number":362,"box":{"x":116,"y":674,"width":701,"height":12}},{"id":"f09c21fc-79ca-4a0b-a3c4-1c3ba3a5665a","block_type":"box","text":"reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that make","page_number":362,"box":{"x":117,"y":690,"width":756,"height":12}},{"id":"42b1411e-c87c-4035-9c6d-11671f72aa7d","block_type":"box","text":"up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name","page_number":362,"box":{"x":117,"y":705,"width":751,"height":12}},{"id":"2f192e5b-9304-4ad9-b79b-53560022e24b","block_type":"box","text":"CDS and index CDS.","page_number":362,"box":{"x":117,"y":721,"width":155,"height":9}},{"id":"e10ac780-a193-489c-b072-23a079aa37de","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not","page_number":362,"box":{"x":117,"y":753,"width":701,"height":13}},{"id":"8f842455-f6df-4f99-bff5-47ceb12efe63","block_type":"box","text":"currently held by a Fund. In circumstances in which a Fund does not own the securities or loans that","page_number":362,"box":{"x":116,"y":769,"width":744,"height":12}},{"id":"c9fa999e-0a49-4244-b4f8-2b4b835b1953","block_type":"box","text":"are deliverable under a credit default swap, the Fund is exposed to the risk that deliverable securities","page_number":362,"box":{"x":116,"y":784,"width":749,"height":12}},{"id":"03735941-3851-4bcb-b5ad-aa7ee1c8c367","block_type":"box","text":"will not be available in the market, or will be available only at unfavorable prices, as would be the case","page_number":362,"box":{"x":116,"y":800,"width":758,"height":12}},{"id":"d51ff129-c032-4d78-bc21-d35ac40fd5d0","block_type":"box","text":"in a so-called “short squeeze.” In certain instances of issuer defaults or restructurings, it has been","page_number":362,"box":{"x":117,"y":815,"width":723,"height":13}},{"id":"f744d483-40ad-4dc0-acd5-d2a39dd8fbe0","block_type":"box","text":"unclear under the standard industry documentation for credit default swaps whether or not a “credit","page_number":362,"box":{"x":117,"y":831,"width":739,"height":12}},{"id":"17af9e14-47af-487f-8df5-066fb6c01d70","block_type":"box","text":"event” triggering the seller’s payment obligation had occurred. Certain initiatives adopted by derivatives","page_number":362,"box":{"x":116,"y":846,"width":771,"height":13}},{"id":"5a3bb3ef-5439-4f7f-8765-530339bd7187","block_type":"box","text":"market participants, including the International Swaps and Derivatives Association (“ISDA”), are","page_number":362,"box":{"x":117,"y":862,"width":713,"height":12}},{"id":"b01e2f2e-085f-4db6-8259-67baafa75fe7","block_type":"box","text":"designed to implement uniform settlement terms into standard credit default swap documentation, as","page_number":362,"box":{"x":116,"y":877,"width":753,"height":13}},{"id":"850328c4-939b-4e5c-93a4-1c5524a0fd55","block_type":"box","text":"II-23","page_number":362,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"71b14afa-9a8e-47dc-be88-d8890eebc111","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":362,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6a9d7ad8-b692-4dab-b7f4-40da54748f91","block_type":"box","text":"well as refine the practices for the transparent conduct of the credit default swap market generally.","page_number":363,"box":{"x":116,"y":87,"width":735,"height":12}},{"id":"dcf862f3-1b6b-46ea-b31a-d2861059d2ca","block_type":"box","text":"Among these initiatives are the ISDA Credit Derivatives Determination Committee and the","page_number":363,"box":{"x":116,"y":102,"width":672,"height":13}},{"id":"65779ee5-7bc3-4bc2-ab63-4d8f6b864826","block_type":"box","text":"implementation of market-wide cash settlement protocols applicable to all market-standard credit","page_number":363,"box":{"x":117,"y":118,"width":722,"height":12}},{"id":"4387b063-aa44-43af-979a-dc793e336c37","block_type":"box","text":"default swaps. These initiatives are intended to reduce both the uncertainty as to the occurrence of","page_number":363,"box":{"x":116,"y":134,"width":739,"height":12}},{"id":"8a1a10c9-76b4-4a1e-b08a-04195f80bcda","block_type":"box","text":"credit events and the risk of a “short squeeze” by providing that the ISDA Credit Derivatives","page_number":363,"box":{"x":116,"y":149,"width":684,"height":12}},{"id":"b1bdf5c5-9f6d-48f0-ac8b-d9562faf869c","block_type":"box","text":"Determinations Committee will make determinations as to whether a credit event has occurred,","page_number":363,"box":{"x":117,"y":165,"width":710,"height":11}},{"id":"23006004-16f9-4491-b767-3a13cc4ae9b8","block_type":"box","text":"establish an auction to determine a settlement price and identify the deliverable securities for purposes","page_number":363,"box":{"x":116,"y":180,"width":768,"height":12}},{"id":"e2872a99-0c05-4ee7-b487-ab8f67b8716d","block_type":"box","text":"of the auction, although the ISDA Credit Derivatives Determinations Committee may in certain limited","page_number":363,"box":{"x":116,"y":196,"width":756,"height":12}},{"id":"7e7f12ea-ef09-44e3-a76c-732adfa44e1f","block_type":"box","text":"circumstances refrain from doing so. In the event the ISDA Credit Derivatives Determinations","page_number":363,"box":{"x":116,"y":211,"width":696,"height":12}},{"id":"b9b6e3af-9a55-434a-b76c-7d341df4ccbe","block_type":"box","text":"Committee cannot reach a timely resolution with respect to a “credit event” or otherwise does not","page_number":363,"box":{"x":117,"y":227,"width":723,"height":12}},{"id":"79655366-b99c-4c1c-84c3-17dd221ff637","block_type":"box","text":"establish a cash settlement auction, a Fund may not be able to realize the full value of the credit","page_number":363,"box":{"x":116,"y":242,"width":717,"height":12}},{"id":"8d0e9f23-2a1e-45fe-a7ff-3f8fb28cda35","block_type":"box","text":"default swap upon a default by the reference entity. Furthermore, a Fund may enter into certain credit","page_number":363,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"38061544-d131-41e9-9349-be101b28ef10","block_type":"box","text":"default swaps or similar instruments that may not be covered by these initiatives.","page_number":363,"box":{"x":116,"y":273,"width":604,"height":12}},{"id":"f7b2bb84-f3d6-4924-b96d-468eadc8a5d0","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","page_number":363,"box":{"x":117,"y":304,"width":729,"height":12}},{"id":"36dd5f82-9ccb-4974-82ab-fcab4257a0c4","block_type":"box","text":"recover nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value","page_number":363,"box":{"x":117,"y":320,"width":757,"height":12}},{"id":"f68c7e52-ea66-4db4-a5cb-f512fbce2c07","block_type":"box","text":"of any deliverable obligation received by the Fund or the amount of cash settlement received by the","page_number":363,"box":{"x":116,"y":335,"width":744,"height":12}},{"id":"72664323-e9dd-4a3d-9047-c968b6a1c812","block_type":"box","text":"Fund pursuant to the relevant cash settlement auction, together with the up-front or periodic payments","page_number":363,"box":{"x":117,"y":351,"width":763,"height":12}},{"id":"7650ee18-a4ec-4d2f-8903-48eca55351c6","block_type":"box","text":"previously received, may be less than the amount it pays to the buyer, resulting in a loss of value to the","page_number":363,"box":{"x":117,"y":366,"width":770,"height":12}},{"id":"161ceb49-8ee8-4c9d-bf7c-d97b08798405","block_type":"box","text":"Fund. A Fund that sells credit default swaps incurs leveraged exposure to the credit of one or more","page_number":363,"box":{"x":117,"y":382,"width":739,"height":12}},{"id":"1e4c7150-bd49-4cf7-82d9-dc6861138438","block_type":"box","text":"reference entities and is subject to many of the same risks it would incur if it were holding debt","page_number":363,"box":{"x":117,"y":397,"width":703,"height":12}},{"id":"99c6f25d-e0dc-40a7-b00e-c5216b8f56a6","block_type":"box","text":"securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":363,"box":{"x":116,"y":413,"width":742,"height":12}},{"id":"94e2487f-655f-4313-9e61-65cc305c47ef","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt","page_number":363,"box":{"x":116,"y":428,"width":764,"height":12}},{"id":"a3249d57-64ec-4d59-b4f1-312b9a9b691c","block_type":"box","text":"obligations. In the event the ISDA Credit Derivatives Determinations Committee does not establish a","page_number":363,"box":{"x":116,"y":444,"width":750,"height":12}},{"id":"92d94aba-6ef1-43cf-9353-6abc2697e398","block_type":"box","text":"cash settlement auction and identify the relevant deliverable securities or loans, the credit default swap","page_number":363,"box":{"x":116,"y":459,"width":769,"height":12}},{"id":"e04892c8-8056-4a80-9d39-7184f8edf8a7","block_type":"box","text":"buyer will have broad discretion to select which of the reference entity’s debt obligations to deliver to","page_number":363,"box":{"x":117,"y":475,"width":748,"height":12}},{"id":"7e788402-73d0-4f5a-839f-1eaf5c745ad7","block_type":"box","text":"the Fund following a credit event and will likely choose the obligations with the lowest market value in","page_number":363,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"1e1bab74-4f17-448b-bb9d-e8da3435cb48","block_type":"box","text":"order to maximize the payment obligations of the Fund. In addition, credit default swaps generally trade","page_number":363,"box":{"x":116,"y":506,"width":772,"height":12}},{"id":"a7a2bd09-a476-4ab2-a83d-3d71b25b78bd","block_type":"box","text":"on the basis of theoretical pricing and valuation models, which may not accurately value such swap","page_number":363,"box":{"x":116,"y":521,"width":742,"height":12}},{"id":"fa5f45dc-8f78-450e-91bb-12d0524ba37b","block_type":"box","text":"positions when established or when subsequently traded or unwound under actual market conditions.","page_number":363,"box":{"x":117,"y":537,"width":756,"height":12}},{"id":"af5e0616-6f64-43b9-af4d-6e71b7949bcc","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for","page_number":363,"box":{"x":117,"y":568,"width":719,"height":12}},{"id":"894f3cd9-ec1f-4483-bb2e-fcf1e615df79","block_type":"box","text":"clearing to regulated clearinghouses. See “— Derivatives — Regulation of Derivatives — Dodd-Frank","page_number":363,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"54e65b65-9e98-4813-bfd3-135184048be1","block_type":"box","text":"Regulations” above. Other single-name CDS and index CDS are permitted, although not required, to","page_number":363,"box":{"x":117,"y":599,"width":750,"height":12}},{"id":"f57af224-81f0-4bc4-a86e-44e4d0a3172b","block_type":"box","text":"be cleared through regulated clearinghouses. The Funds clear all credit default swaps that are subject","page_number":363,"box":{"x":117,"y":614,"width":762,"height":12}},{"id":"dca24a1d-28dd-4d46-b9ee-de85b708b161","block_type":"box","text":"to mandatory clearing and may voluntarily clear some, but not all, of the other credit default swaps not","page_number":363,"box":{"x":116,"y":630,"width":762,"height":12}},{"id":"5285f428-7908-4db9-90e6-c312d9d2562d","block_type":"box","text":"subject to mandatory clearing. The Funds face counterparty risk with respect to the clearinghouse","page_number":363,"box":{"x":116,"y":645,"width":731,"height":12}},{"id":"66e7e6bc-5881-4642-bd17-613708a6db71","block_type":"box","text":"when entering into cleared single-name CDS and cleared index CDS. The Funds face significant","page_number":363,"box":{"x":116,"y":661,"width":717,"height":12}},{"id":"3597d7f6-7a07-4eae-8a9d-b576a6a64d5b","block_type":"box","text":"counterparty risk with respect to their counterparties to non-cleared credit default swaps and similar","page_number":363,"box":{"x":116,"y":676,"width":738,"height":12}},{"id":"1fbd5b18-5401-4093-961c-33c9beb92bae","block_type":"box","text":"instruments. A Fund typically will enter into non-cleared credit default swaps and similar instruments","page_number":363,"box":{"x":117,"y":692,"width":741,"height":12}},{"id":"88a80533-4606-4151-b6ef-2a25b6ad0a92","block_type":"box","text":"with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":363,"box":{"x":116,"y":707,"width":765,"height":12}},{"id":"c7436ece-753d-4e16-be75-d694b168428c","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":363,"box":{"x":116,"y":723,"width":367,"height":12}},{"id":"bdeef250-2fd1-4f2d-891a-4241672041bd","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either","page_number":363,"box":{"x":117,"y":754,"width":750,"height":12}},{"id":"9f16da58-2bfc-4d78-a2e7-2911fd58d63b","block_type":"box","text":"as protection buyer or protection seller. While these contracts are similar in their operation to the","page_number":363,"box":{"x":116,"y":769,"width":715,"height":12}},{"id":"2c94e637-9cd9-4bb5-a43f-2d2a49a3d53d","block_type":"box","text":"market-standard credit default swaps described above, they are less standardized and instead have","page_number":363,"box":{"x":117,"y":785,"width":741,"height":12}},{"id":"7b36c499-90d3-4fd7-946b-933f79faa346","block_type":"box","text":"bespoke or tailored features. For example, as compared to market-standard credit defaults, the range","page_number":363,"box":{"x":117,"y":800,"width":753,"height":12}},{"id":"2565db8a-d699-4a42-aa0c-234e595d9e52","block_type":"box","text":"of “credit events” triggering settlement of such bespoke contracts may be narrower or broader, any","page_number":363,"box":{"x":116,"y":816,"width":733,"height":12}},{"id":"59773a14-2ef4-4251-9f7c-075ecec276dc","block_type":"box","text":"such triggered contracts are settled by physical delivery of the underlying security or loan to or by the","page_number":363,"box":{"x":116,"y":831,"width":755,"height":12}},{"id":"02991dc9-ef41-4192-a3e3-038b43e9493c","block_type":"box","text":"Fund rather than by way of cash settlement, and there may be a wider range of securities as the","page_number":363,"box":{"x":117,"y":847,"width":719,"height":12}},{"id":"11fd6414-fc8b-4000-8206-6789997995ac","block_type":"box","text":"reference obligations and/or deliverable obligations.","page_number":363,"box":{"x":117,"y":862,"width":388,"height":12}},{"id":"a6d88ef7-bb39-4d4b-a215-7ac31721b77f","block_type":"box","text":"II-24","page_number":363,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6cd0b6e6-6dbd-41d2-9389-21db08f47263","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":363,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"7f3ad2e4-da77-4e4a-a8ee-b5747e20e30c","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund","page_number":364,"box":{"x":117,"y":87,"width":752,"height":12}},{"id":"bb261c40-1373-4375-a48e-ddce79a76f99","block_type":"box","text":"had invested in the reference obligation directly and are subject to significant credit risk, correlation","page_number":364,"box":{"x":117,"y":102,"width":738,"height":13}},{"id":"41a38094-f261-4bc8-b76a-86aa747e2ce6","block_type":"box","text":"risk, leverage risk, illiquidity risk and market risk. See “— Risk Factors in Derivatives” above.","page_number":364,"box":{"x":117,"y":118,"width":689,"height":12}},{"id":"a7a9ea89-eadf-4e3d-b142-61ef8be115bf","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":364,"box":{"x":117,"y":151,"width":292,"height":12}},{"id":"e7909fa6-b0cd-4c27-b2bc-d338e7fb9a62","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of","page_number":364,"box":{"x":410,"y":151,"width":450,"height":12}},{"id":"e0bd2bd9-f12e-458a-b117-95b1ff112b0c","block_type":"box","text":"interest rate swaps and interest rate caps and floors. As described in further detail below, a Fund may","page_number":364,"box":{"x":117,"y":167,"width":760,"height":12}},{"id":"60f1890d-67e3-4eff-9c43-995d3b03cd13","block_type":"box","text":"enter into these transactions primarily to preserve a return or spread on a particular investment or","page_number":364,"box":{"x":116,"y":182,"width":729,"height":12}},{"id":"df16beb7-cefe-49b9-8294-43ebb4af56e1","block_type":"box","text":"portion of its holdings, as a duration management technique, to protect against an increase in the price","page_number":364,"box":{"x":117,"y":198,"width":767,"height":12}},{"id":"69f3372c-f8e3-492d-83c8-74acacd17e9b","block_type":"box","text":"of securities a Fund anticipates purchasing at a later date, or for speculation to increase returns.","page_number":364,"box":{"x":116,"y":213,"width":718,"height":12}},{"id":"76abb32b-99b4-404f-a315-d278583c9399","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted","page_number":364,"box":{"x":117,"y":247,"width":756,"height":12}},{"id":"2533d901-2207-4a47-b2e4-d73e3763b833","block_type":"box","text":"for clearing to regulated clearinghouses. See “— Regulation of Derivatives — Dodd-Frank Regulations”","page_number":364,"box":{"x":116,"y":262,"width":771,"height":12}},{"id":"2825366c-478a-4f1f-8813-ca56561b8e64","block_type":"box","text":"above. Other interest rate swaps are permitted, although not required, to be cleared. Most of the","page_number":364,"box":{"x":116,"y":277,"width":720,"height":13}},{"id":"a06afe44-7c03-473b-a103-b16b3d9258af","block_type":"box","text":"interest rate swaps entered into by the Funds are cleared. The Funds face counterparty risk with","page_number":364,"box":{"x":117,"y":293,"width":719,"height":12}},{"id":"d41b4397-00f0-45ea-bb56-de46a4ae48ef","block_type":"box","text":"respect to the clearinghouse when entering into cleared interest rate swaps.","page_number":364,"box":{"x":117,"y":309,"width":568,"height":12}},{"id":"44c30122-a846-4c26-ab00-120329503cf5","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest","page_number":364,"box":{"x":116,"y":342,"width":764,"height":12}},{"id":"5daeaf3c-24ca-4ad1-923a-5ad6bda3ec02","block_type":"box","text":"rate swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared","page_number":364,"box":{"x":117,"y":357,"width":719,"height":12}},{"id":"34dc6bed-3405-41f3-9883-8c4e767a56b8","block_type":"box","text":"interest rate derivatives transactions are swap dealers and other creditworthy entities that have","page_number":364,"box":{"x":117,"y":373,"width":709,"height":12}},{"id":"fc1f9653-4a45-4011-ac5c-2ffbef34f695","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. If","page_number":364,"box":{"x":116,"y":388,"width":760,"height":12}},{"id":"6d223cb0-70f5-43c4-bd6e-6f8c03d458ac","block_type":"box","text":"the Fund’s counterparty defaults on such a transaction, a Fund will have contractual remedies with","page_number":364,"box":{"x":116,"y":404,"width":736,"height":12}},{"id":"4c4c5760-284b-4bfc-8ce8-e55c0850f3ed","block_type":"box","text":"respect to the transaction, but there can be no guarantee that the Fund will be successful in enforcing","page_number":364,"box":{"x":117,"y":419,"width":758,"height":12}},{"id":"139c2b90-16c3-4982-bdb4-230029df103c","block_type":"box","text":"such remedies. The market for interest rate swaps is relatively liquid in comparison with other similar","page_number":364,"box":{"x":116,"y":435,"width":751,"height":12}},{"id":"dc1a8a57-0613-4abb-90ec-352ffcfbda01","block_type":"box","text":"instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":364,"box":{"x":117,"y":450,"width":732,"height":12}},{"id":"30599229-dcb8-4750-bffa-d658f41a0fb5","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":364,"box":{"x":117,"y":466,"width":503,"height":12}},{"id":"a6d54710-4e91-422a-893c-c696e7f12381","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a","page_number":364,"box":{"x":117,"y":499,"width":762,"height":12}},{"id":"7775ed3a-f1e3-498f-b675-14fb75031db3","block_type":"box","text":"fixed or variable interest rate, index or asset in return for periodic payments from its counterparty based","page_number":364,"box":{"x":116,"y":514,"width":772,"height":12}},{"id":"c359d4dd-9242-431c-a0c0-117a948164a7","block_type":"box","text":"on a different fixed or variable interest rate, index or asset.","page_number":364,"box":{"x":116,"y":530,"width":439,"height":11}},{"id":"2f117ddb-1bf9-4aa1-a563-23999c86297b","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls","page_number":364,"box":{"x":116,"y":563,"width":746,"height":12}},{"id":"645418eb-bd27-48e5-bd27-9cc0569226e8","block_type":"box","text":"below a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":364,"box":{"x":117,"y":579,"width":736,"height":12}},{"id":"0e4dfea8-aaa7-4d71-8b9e-f4d47875b2ea","block_type":"box","text":"from the party selling such interest rate floor.","page_number":364,"box":{"x":116,"y":594,"width":337,"height":12}},{"id":"a6e03960-f8e8-4b1b-a851-b16676336c99","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises","page_number":364,"box":{"x":116,"y":627,"width":746,"height":12}},{"id":"825f7ec7-a5cb-42bb-88d8-177e152f5148","block_type":"box","text":"above a predetermined interest rate, to receive payments of interest on a notional principal amount","page_number":364,"box":{"x":116,"y":643,"width":739,"height":12}},{"id":"ee092139-37da-4934-8b36-f8fd347a25e5","block_type":"box","text":"from the party selling such interest rate cap.","page_number":364,"box":{"x":116,"y":658,"width":331,"height":12}},{"id":"cdecf316-91e0-457f-bfc5-2b9417646884","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":364,"box":{"x":116,"y":692,"width":759,"height":12}},{"id":"7910f914-9698-4bef-9d55-dd32863d5d8b","block_type":"box","text":"commitments to pay or receive interest,","page_number":364,"box":{"x":116,"y":707,"width":292,"height":12}},{"id":"3beb0e4d-e589-4a8e-b291-1d4e237876b9","block_type":"box","text":"e.g.","page_number":364,"box":{"x":415,"y":710,"width":26,"height":9}},{"id":"17ee3d57-8831-4e20-80c6-a562cbd9cc1f","block_type":"box","text":", an exchange of fixed rate payments for floating rate","page_number":364,"box":{"x":444,"y":707,"width":391,"height":12}},{"id":"ecda6783-037e-47df-b8bd-68f44f774dd8","block_type":"box","text":"payments. For example, if a Fund holds a mortgage-backed security with an interest rate that is reset","page_number":364,"box":{"x":117,"y":723,"width":750,"height":12}},{"id":"2352080a-6d91-4fe3-be1d-ceb8bb9f1a9f","block_type":"box","text":"only once each year, it may swap the right to receive interest at this fixed rate for the right to receive","page_number":364,"box":{"x":116,"y":738,"width":743,"height":12}},{"id":"f619863c-24b1-4341-9452-e65a1bc60c02","block_type":"box","text":"interest at a rate that is reset every week. This would enable a Fund to offset a decline in the value of","page_number":364,"box":{"x":117,"y":754,"width":751,"height":12}},{"id":"c518869e-6ff8-431a-84af-8b173d2b5eee","block_type":"box","text":"the mortgage-backed security due to rising interest rates but would also limit its ability to benefit from","page_number":364,"box":{"x":116,"y":769,"width":747,"height":12}},{"id":"8c291d13-8823-44eb-bdc3-371862c4c926","block_type":"box","text":"falling interest rates. Conversely, if a Fund holds a mortgage-backed security with an interest rate that","page_number":364,"box":{"x":116,"y":785,"width":756,"height":12}},{"id":"12eb4a3b-2360-43a2-8c23-7253915d989b","block_type":"box","text":"is reset every week and it would like to lock in what","page_number":364,"box":{"x":117,"y":800,"width":378,"height":12}},{"id":"6d595247-bf6e-443f-a149-bc17fa735922","block_type":"box","text":"it believes to be a high interest rate for one year, it","page_number":364,"box":{"x":501,"y":800,"width":373,"height":12}},{"id":"d1ff0641-ddea-4b78-97ae-67e969f1389f","block_type":"box","text":"may swap the right to receive interest at this variable weekly rate for the right to receive interest at a","page_number":364,"box":{"x":117,"y":816,"width":740,"height":12}},{"id":"5f6a9eac-823d-45ae-b6e3-4e0c307d4909","block_type":"box","text":"rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to","page_number":364,"box":{"x":117,"y":831,"width":733,"height":12}},{"id":"167deb7c-4268-4652-875b-21ce1ad91f7d","block_type":"box","text":"falling interest rates and may permit the Fund to enhance its income through the positive differential","page_number":364,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"6f33e636-fab5-4b97-a726-2c8fbfda9d16","block_type":"box","text":"between one week and one year interest rates, but would preclude it from taking full advantage of","page_number":364,"box":{"x":117,"y":862,"width":729,"height":12}},{"id":"3a7be34d-441d-4659-83b7-1b1044804c10","block_type":"box","text":"rising interest rates.","page_number":364,"box":{"x":117,"y":878,"width":150,"height":12}},{"id":"64a9dd85-6e31-4caf-b6f2-1d59de5e4bcb","block_type":"box","text":"II-25","page_number":364,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e089e34d-1e2a-4bb3-992b-cf41567689ea","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":364,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0dbf80e3-2cd5-430d-b4af-9968fb5cdb80","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary","page_number":365,"box":{"x":117,"y":87,"width":746,"height":12}},{"id":"81415524-9fa1-4d98-91cc-db0fcaa1a4f3","block_type":"box","text":"income or, in certain circumstances, as long term capital gains to shareholders.","page_number":365,"box":{"x":117,"y":103,"width":593,"height":12}},{"id":"26e4373c-6de1-4b15-8549-a21f222469c3","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk,","page_number":365,"box":{"x":117,"y":134,"width":751,"height":13}},{"id":"100fbfd2-3ae0-42d8-b1c4-e6d99277f1a0","block_type":"box","text":"illiquidity risk and market risk. See “— Risk Factors in Derivatives” above.","page_number":365,"box":{"x":117,"y":150,"width":549,"height":12}},{"id":"84a46931-756e-428e-bfe9-e71992dac1d0","block_type":"box","text":"Total Return Swaps.","page_number":365,"box":{"x":118,"y":182,"width":155,"height":12}},{"id":"9bb9a1c1-91fe-4ce3-8355-864e213926c2","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic","page_number":365,"box":{"x":273,"y":182,"width":570,"height":12}},{"id":"d8fdd38e-69ce-4431-9510-90c2a59fc6b6","block_type":"box","text":"payments to the other party based on the return of the assets underlying the contract in exchange for","page_number":365,"box":{"x":117,"y":197,"width":754,"height":13}},{"id":"a5aacc16-058b-49f1-88e5-31a2cfd245e8","block_type":"box","text":"periodic payments based on a fixed or variable interest rate or the total return from different underlying","page_number":365,"box":{"x":117,"y":213,"width":765,"height":12}},{"id":"d13c843f-fe35-4581-a58b-75d4fb65d897","block_type":"box","text":"assets. The return of the assets underlying the contract includes both the income generated by the","page_number":365,"box":{"x":116,"y":228,"width":737,"height":13}},{"id":"781d2510-d084-4dcc-819f-58b06eabf17b","block_type":"box","text":"asset and the change in market value of the asset. The asset underlying the contract may include a","page_number":365,"box":{"x":116,"y":244,"width":743,"height":12}},{"id":"5c1538dc-af8c-4c72-b95f-d57acdb5f717","block_type":"box","text":"specified security, basket of securities or securities indices. Total return swaps on a specified security,","page_number":365,"box":{"x":116,"y":259,"width":763,"height":13}},{"id":"f20e054c-e39a-4581-b229-f25c0f2caf3a","block_type":"box","text":"basket of securities or securities indices may sometimes be referred to as “contracts for difference.”","page_number":365,"box":{"x":117,"y":275,"width":743,"height":12}},{"id":"0f68365f-b020-4c94-aa61-c2495b489800","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking","page_number":365,"box":{"x":116,"y":307,"width":744,"height":12}},{"id":"1725d759-2d54-4730-a382-d8d6a572ba81","block_type":"box","text":"physical custody of such security or investing directly in such market. Upon entering into a total return","page_number":365,"box":{"x":117,"y":322,"width":758,"height":13}},{"id":"76df7f39-2526-4e9e-a900-01b558742ac7","block_type":"box","text":"swap, a Fund is required to deposit initial margin but the parties do not exchange the notional amount.","page_number":365,"box":{"x":116,"y":338,"width":763,"height":12}},{"id":"a716bf06-4f4d-4b0f-b812-86bd7c97efef","block_type":"box","text":"As a result, total return swaps may effectively add leverage to the Fund’s portfolio because the Fund","page_number":365,"box":{"x":116,"y":353,"width":750,"height":13}},{"id":"770fa9d3-aac9-4c9c-a417-b07b94ae17b6","block_type":"box","text":"would be subject to investment exposure on the notional amount of the swap.","page_number":365,"box":{"x":116,"y":369,"width":580,"height":12}},{"id":"d18e8be5-9cf1-44f3-87c6-22341e681738","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk","page_number":365,"box":{"x":116,"y":401,"width":743,"height":12}},{"id":"1885745e-e2fa-448e-b365-aa0416d1c993","block_type":"box","text":"and counterparty risk. See “— Risk Factors in Derivatives” above.","page_number":365,"box":{"x":116,"y":416,"width":493,"height":13}},{"id":"37cfd66e-d629-49b4-b048-2dd9ea5f8d10","block_type":"box","text":"Options.","page_number":365,"box":{"x":117,"y":448,"width":66,"height":12}},{"id":"c65579a0-2ce3-4f1d-947f-9d67529d8770","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":365,"box":{"x":117,"y":472,"width":337,"height":12}},{"id":"d23737e2-13b3-4208-91c9-ca758e90a6c2","block_type":"box","text":"A Fund may engage in transactions in options on","page_number":365,"box":{"x":454,"y":472,"width":370,"height":12}},{"id":"79d510fe-9fa0-4f9e-8c81-5113a9f6074a","block_type":"box","text":"individual securities, baskets of securities or securities indices, or particular measurements of value or","page_number":365,"box":{"x":117,"y":488,"width":761,"height":12}},{"id":"44b77bb3-f05d-48c5-8065-8b146ee7aaaf","block_type":"box","text":"rates, such as an index of the price of treasury securities or an index representative of short-term","page_number":365,"box":{"x":117,"y":503,"width":724,"height":12}},{"id":"0d6e3cf5-8b29-455c-9f83-dd416433473b","block_type":"box","text":"interest rates. Such investments may be made on exchanges and in the OTC markets. In general,","page_number":365,"box":{"x":117,"y":519,"width":732,"height":12}},{"id":"3ce0dacb-4457-45ae-a46a-9c92da40ac85","block_type":"box","text":"exchange-traded options have standardized exercise prices and expiration dates and require the","page_number":365,"box":{"x":116,"y":534,"width":723,"height":12}},{"id":"c9e12ca9-2773-4d11-bdf0-864a9a0b21cb","block_type":"box","text":"parties to post margin against their obligations, and the performance of the parties’ obligations in","page_number":365,"box":{"x":117,"y":550,"width":720,"height":12}},{"id":"e7a2e06a-0c39-43e2-8dd6-a5c0867fc4b7","block_type":"box","text":"connection with such options is guaranteed by the exchange or a related clearing corporation. OTC","page_number":365,"box":{"x":116,"y":565,"width":742,"height":12}},{"id":"33519543-a3b3-48b7-943d-334eabf128d1","block_type":"box","text":"options have more flexible terms negotiated between the buyer and the seller, but are subject to","page_number":365,"box":{"x":116,"y":581,"width":717,"height":12}},{"id":"c1d7e959-8735-4c1d-912f-2e51e5024684","block_type":"box","text":"greater credit risk. OTC options also involve greater illiquidity risk.","page_number":365,"box":{"x":116,"y":596,"width":493,"height":12}},{"id":"82d6a9e0-029c-4473-a0ce-62ff27164fcd","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in","page_number":365,"box":{"x":116,"y":628,"width":709,"height":12}},{"id":"c9fb55ed-943a-473e-ad4a-d32a81dbf3e9","block_type":"box","text":"different payment structures and/or expirations (commonly referred to as exotic options). For example,","page_number":365,"box":{"x":116,"y":644,"width":765,"height":12}},{"id":"784e0a29-dbc9-4c3f-9198-a3f283ac4280","block_type":"box","text":"barrier options are exotic options that can only be exercised (or automatically expire) if the price of the","page_number":365,"box":{"x":117,"y":659,"width":761,"height":12}},{"id":"d8753393-8d2c-4903-b3da-66710e487506","block_type":"box","text":"underlying asset reaches one or more predetermined levels on or before expiration. Binary options are","page_number":365,"box":{"x":117,"y":675,"width":760,"height":12}},{"id":"a700862b-c55d-498b-866a-56e5b7a3bbb4","block_type":"box","text":"another example of exotic options which have a fixed all-or-nothing payout if one or more","page_number":365,"box":{"x":116,"y":690,"width":661,"height":12}},{"id":"2cbc76dc-064c-486e-8ef6-d12a9680fef1","block_type":"box","text":"predetermined conditions are met. Exotic options are typically traded in OTC markets.","page_number":365,"box":{"x":117,"y":706,"width":635,"height":12}},{"id":"b9db2b67-88ee-41d3-a62d-7f8182c5fead","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example,","page_number":365,"box":{"x":116,"y":738,"width":763,"height":12}},{"id":"83cc4f32-fa4e-4042-ba67-f85a2540d6d6","block_type":"box","text":"there are significant differences between the securities and options markets that could result in an","page_number":365,"box":{"x":116,"y":753,"width":726,"height":12}},{"id":"a42e9f1a-8cba-40f5-9538-cc501f474c4d","block_type":"box","text":"imperfect correlation between these markets, causing a given transaction not to achieve its objectives.","page_number":365,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"1fe1a3ad-8576-4bfe-ad5f-d16753c77200","block_type":"box","text":"In addition, a liquid market for particular options, whether traded OTC or on a national securities","page_number":365,"box":{"x":117,"y":784,"width":710,"height":12}},{"id":"29575fae-69e0-4018-99d8-95785b7c4b1f","block_type":"box","text":"exchange (“Exchange”) may be absent for reasons which include the following: there may be","page_number":365,"box":{"x":116,"y":800,"width":690,"height":12}},{"id":"cd64d48a-eca7-4458-952d-67ecb5508c0b","block_type":"box","text":"insufficient trading interest in certain options; restrictions may be imposed by an Exchange on opening","page_number":365,"box":{"x":117,"y":815,"width":757,"height":12}},{"id":"7965d087-c6c3-4d7d-8be5-12dd66ea0eb9","block_type":"box","text":"transactions or closing transactions or both; trading halts, suspensions or other restrictions may be","page_number":365,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"773aa966-5791-4f17-8b0b-ec70e7700961","block_type":"box","text":"imposed with respect to particular classes or series of options or underlying securities; unusual or","page_number":365,"box":{"x":117,"y":846,"width":727,"height":12}},{"id":"de101c5e-077e-4b55-82e4-4efc93230d84","block_type":"box","text":"unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an","page_number":365,"box":{"x":117,"y":862,"width":708,"height":12}},{"id":"a31d0f9b-ea46-45ef-8349-7ec382d012d4","block_type":"box","text":"Exchange or the Options Clearing Corporation may not at all times be adequate to handle current","page_number":365,"box":{"x":117,"y":877,"width":728,"height":12}},{"id":"c488427e-4deb-4829-8692-356dc752e6a4","block_type":"box","text":"II-26","page_number":365,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0a1fed6c-f4ca-461a-8065-1b4991edd9df","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":365,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6a19d94a-5afb-4bd7-894d-384f81dab468","block_type":"box","text":"trading volume; or one or more Exchanges could, for economic or other reasons, decide or be","page_number":366,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"115b2317-9366-4815-a361-873c04d74525","block_type":"box","text":"compelled at some future date to discontinue the trading of options (or a particular class or series of","page_number":366,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"c681cd0c-8db8-4f7c-8c3a-2abb19dc297f","block_type":"box","text":"options), in which event the market on that Exchange (or in that class or series of options) would cease","page_number":366,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"4c899f83-cf67-4fe4-9d82-314231c48d39","block_type":"box","text":"to exist, although outstanding options that had been issued by the Options Clearing Corporation as a","page_number":366,"box":{"x":116,"y":134,"width":753,"height":12}},{"id":"2bbab4b1-bf02-44c3-bbe0-5be864be6727","block_type":"box","text":"result of trades on that Exchange would continue to be exercisable in accordance with their terms.","page_number":366,"box":{"x":117,"y":149,"width":732,"height":12}},{"id":"f0d34135-a498-4e9c-87f6-ce36ce5b8857","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or","page_number":366,"box":{"x":117,"y":180,"width":749,"height":12}},{"id":"7e6b1b89-8c16-438d-8a1d-7e83c24a05e2","block_type":"box","text":"put options on the same asset that may be bought or written by a single investor, whether acting alone","page_number":366,"box":{"x":117,"y":196,"width":764,"height":12}},{"id":"a6fd8f3b-68c2-4609-be49-25d27327cfc0","block_type":"box","text":"or in concert with others (regardless of whether such options are written on the same or different","page_number":366,"box":{"x":116,"y":211,"width":720,"height":12}},{"id":"ce267c59-893a-467d-87fc-276991fe052c","block_type":"box","text":"exchanges or are held or written on one or more accounts or through one or more brokers). Under","page_number":366,"box":{"x":116,"y":227,"width":735,"height":12}},{"id":"3c968311-fc6a-4acc-b0f3-70c7ee485c7b","block_type":"box","text":"these limitations, option positions of all investment companies advised by the Manager are combined","page_number":366,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"604eed8c-e0aa-487f-8614-acab06c5a1cc","block_type":"box","text":"for purposes of these limits. Pursuant to these limitations, an exchange may order the liquidation of","page_number":366,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"d009bfe1-dc7c-4963-953f-094ede302b30","block_type":"box","text":"positions and may impose other sanctions or restrictions. These position limits may restrict the number","page_number":366,"box":{"x":117,"y":273,"width":766,"height":12}},{"id":"29f4537d-4772-4a8c-927e-b8ff93b70ba1","block_type":"box","text":"of listed options that a Fund may buy or sell.","page_number":366,"box":{"x":116,"y":289,"width":334,"height":12}},{"id":"b14dafd2-7c8a-4ce1-a039-088007ba03c1","block_type":"box","text":"Call Options.","page_number":366,"box":{"x":117,"y":320,"width":100,"height":12}},{"id":"cf7f6a7f-aa15-4e9e-84bd-7389776f3324","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in","page_number":366,"box":{"x":217,"y":320,"width":629,"height":12}},{"id":"08e94e22-7980-4442-9197-655693beb024","block_type":"box","text":"which it may invest. A purchased call option gives a Fund the right to buy, and obligates the seller to","page_number":366,"box":{"x":116,"y":335,"width":748,"height":12}},{"id":"c42f9cdf-95c9-43e9-844a-a277d4161994","block_type":"box","text":"sell, the underlying security at the exercise price at any time during the option period. A Fund also may","page_number":366,"box":{"x":116,"y":351,"width":767,"height":12}},{"id":"e4544238-699c-4d5a-9540-ffc84d8f3eeb","block_type":"box","text":"purchase and sell call options on indices. Index options are similar to options on securities except that,","page_number":366,"box":{"x":117,"y":366,"width":765,"height":12}},{"id":"48bc6a7f-c584-44eb-bae3-85f34683962d","block_type":"box","text":"rather than taking or making delivery of securities underlying the option at a specified price upon","page_number":366,"box":{"x":117,"y":382,"width":718,"height":12}},{"id":"80b07e2e-4731-4769-80b2-38d0989fc67c","block_type":"box","text":"exercise, an index option gives the holder the right to receive cash upon exercise of the option if the","page_number":366,"box":{"x":116,"y":397,"width":745,"height":12}},{"id":"d87f10b9-d473-42eb-84ec-ea29d3ffb195","block_type":"box","text":"level of the index upon which the option is based is greater than the exercise price of the option.","page_number":366,"box":{"x":117,"y":413,"width":716,"height":12}},{"id":"4774ffe4-ead0-4d86-b9e5-ed7ceb009405","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","page_number":366,"box":{"x":116,"y":444,"width":750,"height":12}},{"id":"835acc76-60f3-4773-8bd9-831ba296bf07","block_type":"box","text":"where the exercise price of the call held is (i) equal to or less than the exercise price of the call written,","page_number":366,"box":{"x":116,"y":459,"width":765,"height":12}},{"id":"6a4081db-1a3d-4966-bde5-146e99233253","block_type":"box","text":"or (ii) greater than the exercise price of the call written provided the difference is maintained by the","page_number":366,"box":{"x":116,"y":475,"width":736,"height":12}},{"id":"7baa78eb-ee63-4238-b335-9d7f5d5ecc8d","block_type":"box","text":"Fund in assets which are not considered illiquid investments under the Funds’ Liquidity Program (as","page_number":366,"box":{"x":117,"y":490,"width":745,"height":12}},{"id":"4f5afc02-50d6-4d79-9e46-b22d8966aa54","block_type":"box","text":"defined below) (“liquid assets”) designated on the Manager’s or the sub-adviser’s books and records to","page_number":366,"box":{"x":116,"y":506,"width":769,"height":12}},{"id":"6a684b27-782f-4427-bd4c-69fcce70ec4b","block_type":"box","text":"the extent required by Commission guidelines.","page_number":366,"box":{"x":116,"y":521,"width":350,"height":12}},{"id":"7000acbd-665b-4a99-8326-b3ad0b251708","block_type":"box","text":"A Fund may write (","page_number":366,"box":{"x":116,"y":552,"width":140,"height":12}},{"id":"a7f206bb-afbf-4e86-a0a6-7d33c0c5c6da","block_type":"box","text":"i.e.","page_number":366,"box":{"x":257,"y":552,"width":21,"height":10}},{"id":"73f7c826-d1a9-4802-b969-c08dc20a69bd","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest","page_number":366,"box":{"x":281,"y":552,"width":599,"height":12}},{"id":"f9f040be-6ca8-42d2-9cb0-e652fc0029bc","block_type":"box","text":"and to enter into closing purchase transactions with respect to certain of such options. A covered call","page_number":366,"box":{"x":116,"y":568,"width":754,"height":12}},{"id":"e0932d73-13b8-4f40-a952-f3e901381e03","block_type":"box","text":"option is an option in which a Fund, in return for a premium, gives another party a right to buy specified","page_number":366,"box":{"x":116,"y":583,"width":769,"height":12}},{"id":"76c19eb3-7e7c-4c23-99c6-375b0d4eb07f","block_type":"box","text":"securities owned by the Fund at a specified future date and price set at the time of the contract. The","page_number":366,"box":{"x":116,"y":599,"width":747,"height":12}},{"id":"c6101099-fdfe-4017-97fd-b687f59521e3","block_type":"box","text":"principal reason for writing call options is the attempt to realize, through the receipt of premiums, a","page_number":366,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"50779277-cbc6-42ba-b5f5-1cea06c4e65a","block_type":"box","text":"greater return than would be realized on the securities alone. By writing covered call options, a Fund","page_number":366,"box":{"x":116,"y":630,"width":750,"height":12}},{"id":"903aa909-5a10-4c90-a68f-5897f73bc302","block_type":"box","text":"gives up the opportunity, while the option is in effect, to profit from any price increase in the underlying","page_number":366,"box":{"x":116,"y":645,"width":763,"height":12}},{"id":"ac622fac-a637-41df-b900-29810b4b9ea4","block_type":"box","text":"security above the option exercise price. In addition, a Fund’s ability to sell the underlying security will","page_number":366,"box":{"x":116,"y":661,"width":753,"height":12}},{"id":"0f2d1985-5777-4202-a822-3775780ddea1","block_type":"box","text":"be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":366,"box":{"x":117,"y":676,"width":733,"height":12}},{"id":"0a40fba3-0755-4ed1-947a-493c823d7727","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an","page_number":366,"box":{"x":116,"y":692,"width":742,"height":12}},{"id":"ec4c3a42-80f7-4df5-aef5-6181007b908e","block_type":"box","text":"offsetting purchase of an identical option prior to the expiration of the option it has written. Covered call","page_number":366,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"7edcabc5-9e32-421a-b29d-18636598eac9","block_type":"box","text":"options also serve as a partial hedge to the extent of the premium received against the price of the","page_number":366,"box":{"x":116,"y":723,"width":731,"height":12}},{"id":"2af2abf2-75ab-4043-bdc5-d8879de4f504","block_type":"box","text":"underlying security declining.","page_number":366,"box":{"x":117,"y":738,"width":213,"height":12}},{"id":"9a04bab4-e41b-481b-83bc-df39155f0709","block_type":"box","text":"A Fund may write (","page_number":366,"box":{"x":116,"y":769,"width":140,"height":12}},{"id":"4ba5b86b-3a65-4474-b06b-fdc401283258","block_type":"box","text":"i.e.","page_number":366,"box":{"x":257,"y":769,"width":21,"height":10}},{"id":"2d4fadfc-ac10-42d3-8931-49df6663c4d8","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest","page_number":366,"box":{"x":281,"y":769,"width":585,"height":12}},{"id":"8bcb7906-3f29-4308-8678-484f9ff06d60","block_type":"box","text":"but that are not currently held by the Fund. The principal reason for writing uncovered call options is to","page_number":366,"box":{"x":117,"y":785,"width":758,"height":12}},{"id":"274217bd-749c-4b82-b8a8-058cbc4e9490","block_type":"box","text":"realize income without committing capital to the ownership of the underlying securities or instruments.","page_number":366,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"62abf766-4880-4117-8f1b-60be991eaf55","block_type":"box","text":"When writing uncovered call options, a Fund must deposit and maintain sufficient margin with the","page_number":366,"box":{"x":116,"y":816,"width":721,"height":12}},{"id":"beeb9e08-5ed5-4225-a2df-b5bb4a774336","block_type":"box","text":"broker-dealer through which it made the uncovered call option as collateral to ensure that the securities","page_number":366,"box":{"x":117,"y":831,"width":771,"height":12}},{"id":"61e6c467-1f46-4d7a-a078-0beeac107614","block_type":"box","text":"can be purchased for delivery if and when the option is exercised. During periods of declining","page_number":366,"box":{"x":116,"y":847,"width":697,"height":12}},{"id":"4a6a50ed-4e9b-4186-a786-a15e2b63e1e0","block_type":"box","text":"securities prices or when prices are stable, writing uncovered calls can be a profitable strategy to","page_number":366,"box":{"x":116,"y":862,"width":724,"height":12}},{"id":"73ef2d99-1d76-4305-b090-300b0d0a3ada","block_type":"box","text":"increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls","page_number":366,"box":{"x":117,"y":878,"width":724,"height":12}},{"id":"22d7eae5-1e90-469c-99a6-ac48cffe0e06","block_type":"box","text":"II-27","page_number":366,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"9008b081-14f3-49cf-aa64-a128e96ba181","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":366,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"876a2142-0303-4c62-af0b-bce68eda26e2","block_type":"box","text":"because there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls","page_number":367,"box":{"x":117,"y":87,"width":771,"height":12}},{"id":"40b866bb-ccee-4744-accb-92c687a9bd6b","block_type":"box","text":"have speculative characteristics and the potential for loss is unlimited. When an uncovered call is","page_number":367,"box":{"x":117,"y":102,"width":725,"height":12}},{"id":"1746d72d-2334-45c2-b30b-d2e0e49d1e4c","block_type":"box","text":"exercised, a Fund must purchase the underlying security to meet its call obligation. There is also a risk,","page_number":367,"box":{"x":116,"y":118,"width":771,"height":12}},{"id":"633309d1-6c26-4290-a5f0-669587a0ccde","block_type":"box","text":"especially with preferred and debt securities that lack sufficient liquidity, that the securities may not be","page_number":367,"box":{"x":116,"y":134,"width":760,"height":12}},{"id":"2277a619-337c-4104-b557-ef5c81074638","block_type":"box","text":"available for purchase. If the purchase price exceeds the exercise price, a Fund will lose the difference.","page_number":367,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"98efa04e-3ca4-495e-83b0-b3297a900071","block_type":"box","text":"Put Options.","page_number":367,"box":{"x":116,"y":180,"width":97,"height":12}},{"id":"076523e7-29a9-4d24-9264-9fc4e59f113f","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its","page_number":367,"box":{"x":213,"y":180,"width":648,"height":12}},{"id":"51314593-f2f2-431d-8c39-fdfa05fca32a","block_type":"box","text":"securities or to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying","page_number":367,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"870addb3-c43b-4107-9005-3d414ebc5266","block_type":"box","text":"securities or instruments at the exercise price, thus limiting the Fund’s risk of loss through a decline in","page_number":367,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"ff874094-3b57-4751-93b9-e08fa3705f89","block_type":"box","text":"the market value of the securities or instruments until the put option expires. The amount of any","page_number":367,"box":{"x":116,"y":227,"width":714,"height":12}},{"id":"feaa8ed1-e5e7-4144-983f-626b805c0aae","block_type":"box","text":"appreciation in the value of the underlying securities or instruments will be partially offset by the","page_number":367,"box":{"x":116,"y":242,"width":714,"height":12}},{"id":"112d7cfa-42b0-4b79-8aa2-7b43e3fd394b","block_type":"box","text":"amount of the premium paid for the put option and any related transaction costs. Prior to its expiration,","page_number":367,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"2dc66d50-42b7-4a2b-b612-9d27ae82b6f1","block_type":"box","text":"a put option may be sold in a closing sale transaction and profit or loss from the sale will depend on","page_number":367,"box":{"x":116,"y":273,"width":743,"height":12}},{"id":"4f33fa00-7857-443d-b31e-2b0e76d78358","block_type":"box","text":"whether the amount received is more or less than the premium paid for the put option plus the related","page_number":367,"box":{"x":116,"y":289,"width":759,"height":12}},{"id":"9617d5f0-3987-49af-b878-16018c147e14","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an","page_number":367,"box":{"x":116,"y":304,"width":725,"height":12}},{"id":"65604855-5bb5-4b1b-8050-8d3d95e17ec9","block_type":"box","text":"option by means of an offsetting sale of an identical option prior to the expiration of the option it has","page_number":367,"box":{"x":116,"y":320,"width":743,"height":12}},{"id":"7f236d38-e792-4e3e-9c19-b9d20021eed6","block_type":"box","text":"purchased. A Fund also may purchase uncovered put options.","page_number":367,"box":{"x":117,"y":335,"width":467,"height":12}},{"id":"8147ef6d-c535-4ae4-878b-926aef544733","block_type":"box","text":"A Fund also may write (","page_number":367,"box":{"x":116,"y":366,"width":176,"height":12}},{"id":"8c1140b3-8016-4b33-8072-6ccd714af2b1","block_type":"box","text":"i.e.","page_number":367,"box":{"x":293,"y":366,"width":20,"height":10}},{"id":"164b28eb-b3be-4906-b2cd-020ac46da800","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held","page_number":367,"box":{"x":316,"y":366,"width":563,"height":12}},{"id":"97532d9f-dae2-49bd-998e-4996dc85c72f","block_type":"box","text":"by the Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":367,"box":{"x":117,"y":382,"width":763,"height":12}},{"id":"f88aa4de-6a4b-481a-b1be-3ac82a3dbefc","block_type":"box","text":"A Fund also may write (","page_number":367,"box":{"x":116,"y":413,"width":172,"height":12}},{"id":"2c21a9af-cb81-492b-8a03-928371d48310","block_type":"box","text":"i.e.","page_number":367,"box":{"x":289,"y":413,"width":20,"height":9}},{"id":"fdbd870d-96dc-4aff-a992-e720aefe9049","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest","page_number":367,"box":{"x":312,"y":413,"width":575,"height":12}},{"id":"63f13878-380c-4bce-992f-fc1b32f32344","block_type":"box","text":"but with respect to which the Fund does not current","page_number":367,"box":{"x":117,"y":428,"width":372,"height":12}},{"id":"89339ba3-60e3-4877-b27f-b57c6524894f","block_type":"box","text":"ly have a corresponding short position or has not","page_number":367,"box":{"x":490,"y":428,"width":359,"height":12}},{"id":"0231470a-29e8-4a4e-9ba9-c0c8afacf1f9","block_type":"box","text":"deposited as collateral cash equal to the exercise va","page_number":367,"box":{"x":116,"y":444,"width":381,"height":12}},{"id":"617c4c1f-b284-475c-830c-c7d69c5aa6a2","block_type":"box","text":"lue of the put option with","page_number":367,"box":{"x":498,"y":444,"width":182,"height":12}},{"id":"194d3f80-44a5-4a0b-a1ec-e01eb838d455","block_type":"box","text":"the broker-dealer through","page_number":367,"box":{"x":680,"y":444,"width":190,"height":12}},{"id":"1d3eee2a-2af7-43c0-9875-a7ecf49596be","block_type":"box","text":"which it made the uncovered put opt","page_number":367,"box":{"x":116,"y":459,"width":264,"height":12}},{"id":"db8c4aae-e36a-481d-b068-ebe252bd823b","block_type":"box","text":"ion. The principal reason for writing uncovered put options is to","page_number":367,"box":{"x":381,"y":459,"width":461,"height":12}},{"id":"849a76b3-acda-4b9b-8037-a18f36e17c9b","block_type":"box","text":"receive premium income and to acquire such securities","page_number":367,"box":{"x":117,"y":475,"width":400,"height":12}},{"id":"6dff600d-92a0-4e78-9499-e768f0141046","block_type":"box","text":"or instruments at a net cost below the current","page_number":367,"box":{"x":517,"y":475,"width":339,"height":9}},{"id":"d24369a6-8007-4aa2-b50d-69a2cb86b9b5","block_type":"box","text":"market value. A Fund has the obligation to buy the","page_number":367,"box":{"x":117,"y":490,"width":370,"height":12}},{"id":"ddd7360c-f0e7-4aa3-8f2f-e3b5e6c9abc3","block_type":"box","text":"securities or instruments at an agreed upon price if","page_number":367,"box":{"x":488,"y":490,"width":373,"height":12}},{"id":"623a50ba-a3f5-432f-ba12-11275e85693a","block_type":"box","text":"the price of the securities or instruments decreases bel","page_number":367,"box":{"x":116,"y":506,"width":397,"height":12}},{"id":"332a21bb-c84b-4af6-9546-91d69ff12582","block_type":"box","text":"ow the exercise price. If the price of the securities","page_number":367,"box":{"x":515,"y":506,"width":364,"height":12}},{"id":"0873c3e3-55be-4165-a8d1-060a85a4c549","block_type":"box","text":"or instruments increases during the option period,","page_number":367,"box":{"x":116,"y":521,"width":360,"height":12}},{"id":"4c32f081-2849-45be-ac5c-c6db210ca491","block_type":"box","text":"the option will expire worthless and a Fund will retain","page_number":367,"box":{"x":477,"y":521,"width":393,"height":12}},{"id":"bf6344c8-a1c4-42c4-846e-58ff8b85a7c7","block_type":"box","text":"the premium and will not have to purchase the securiti","page_number":367,"box":{"x":116,"y":537,"width":392,"height":12}},{"id":"a015b6b2-6067-4319-85cc-87ee83e58442","block_type":"box","text":"es or instruments at the exercise price.","page_number":367,"box":{"x":510,"y":537,"width":286,"height":12}},{"id":"8a840590-9641-48d3-a14a-a92342d460b8","block_type":"box","text":"Options on Government National Mortgage Association (“GNMA”) Certificates.","page_number":367,"box":{"x":117,"y":568,"width":586,"height":12}},{"id":"aa9ba0bd-b739-44e6-be67-5c579520dae6","block_type":"box","text":"The following","page_number":367,"box":{"x":704,"y":568,"width":103,"height":12}},{"id":"7ffbc479-2e78-4fb1-802c-13af9590932d","block_type":"box","text":"information relates to the unique characteristics of options on GNMA Certificates. Since the remaining","page_number":367,"box":{"x":117,"y":583,"width":759,"height":12}},{"id":"cc4d0e6d-db06-49e3-85ca-3f5a85f8e7c0","block_type":"box","text":"principal balance of GNMA Certificates declines each month as a result of mortgage payments, a","page_number":367,"box":{"x":117,"y":599,"width":725,"height":12}},{"id":"d8622c4d-e669-4cd1-a7fb-f5c564bfc549","block_type":"box","text":"Fund, as a writer of a GNMA call holding GNMA Certificates as “cover” to satisfy its delivery obligation","page_number":367,"box":{"x":117,"y":614,"width":761,"height":12}},{"id":"f30f26df-364e-4b33-a886-66c17df15729","block_type":"box","text":"in the event of exercise, may find that the GNMA Certificates it holds no longer have a sufficient","page_number":367,"box":{"x":117,"y":630,"width":714,"height":12}},{"id":"070f1f8a-460f-40c7-8955-eda2c0d7b180","block_type":"box","text":"remaining principal balance for this purpose. Should this occur, a Fund will purchase additional GNMA","page_number":367,"box":{"x":117,"y":645,"width":763,"height":12}},{"id":"a6f76770-fa08-4680-95fa-89bb2294c5f7","block_type":"box","text":"Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash market in order","page_number":367,"box":{"x":117,"y":661,"width":750,"height":12}},{"id":"f5f7b8c3-05c1-4da2-aecb-e117888664e2","block_type":"box","text":"to maintain its “cover.”","page_number":367,"box":{"x":116,"y":676,"width":165,"height":10}},{"id":"14c20e65-68bf-4137-abe1-a59c0baaa6e2","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month","page_number":367,"box":{"x":116,"y":707,"width":758,"height":12}},{"id":"d07aba4b-067f-48d7-8fe3-850a09aedb6c","block_type":"box","text":"may cease to represent cover for the option in the event of a decline in the GNMA coupon rate at","page_number":367,"box":{"x":117,"y":723,"width":719,"height":12}},{"id":"fc48ae30-ac14-40d6-839f-0790c51c10fe","block_type":"box","text":"which new pools are originated under the FHA/VA loan ceiling in effect at any given time. If this should","page_number":367,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"01f76b55-ac72-4c6c-b89f-899ad86eafca","block_type":"box","text":"occur, a Fund will no longer be covered, and the Fund will either enter into a closing purchase","page_number":367,"box":{"x":116,"y":754,"width":696,"height":12}},{"id":"253856f0-7a88-4a51-a2c1-16ad5ab319a7","block_type":"box","text":"transaction or replace such Certificate with a certificate that represents cover. When a Fund closes its","page_number":367,"box":{"x":116,"y":769,"width":754,"height":12}},{"id":"2427b2c9-ed5b-4070-a3ea-e05f104ea58f","block_type":"box","text":"position or replaces such Certificate, it may realize an unanticipated loss and incur transaction costs.","page_number":367,"box":{"x":117,"y":785,"width":745,"height":12}},{"id":"c784143a-0ab0-4c09-8f91-f622f0457f95","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":367,"box":{"x":117,"y":816,"width":243,"height":12}},{"id":"5374b6b1-28d9-4560-8602-0d3075d43ef3","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to","page_number":367,"box":{"x":366,"y":816,"width":508,"height":12}},{"id":"848374b4-71c9-4e98-9327-a49d9d184b7d","block_type":"box","text":"enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap","page_number":367,"box":{"x":116,"y":831,"width":750,"height":12}},{"id":"445d6144-ef59-47a9-bcd4-ec72c69d5d61","block_type":"box","text":"agreement, at a designated future time on specified terms. A Fund may write (","page_number":367,"box":{"x":116,"y":847,"width":580,"height":12}},{"id":"4cb6092f-8c5e-450a-8846-7144b2493aeb","block_type":"box","text":"i.e.","page_number":367,"box":{"x":698,"y":847,"width":20,"height":9}},{"id":"81fd8a54-ebe7-4e2f-8d51-c60c82f8d92c","block_type":"box","text":", sell) and purchase","page_number":367,"box":{"x":721,"y":847,"width":150,"height":12}},{"id":"227164af-dfc5-4d19-999c-8bf062695408","block_type":"box","text":"put and call swaptions. Depending on the terms of the particular option agreement, a Fund will","page_number":367,"box":{"x":117,"y":862,"width":704,"height":12}},{"id":"e794e815-6f3d-45c0-b6a1-76d162fea464","block_type":"box","text":"generally incur a greater degree of risk when it writes a swaption than it will incur when it purchases a","page_number":367,"box":{"x":116,"y":878,"width":758,"height":12}},{"id":"1e51096f-085e-4f62-a863-209c23c6f728","block_type":"box","text":"II-28","page_number":367,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f2128553-25a6-4e30-80ae-34994b7677a6","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":367,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2ec82af8-bc18-484a-864b-2003e0867cea","block_type":"box","text":"swaption. When a Fund purchases a swaption, it risks losing only the amount of the premium it has","page_number":368,"box":{"x":116,"y":87,"width":741,"height":12}},{"id":"ab7f9bc6-6f6a-49f4-a9b9-2f579d1b3f05","block_type":"box","text":"paid should it decide to let the option expire unexercised. However, when a Fund writes a swaption,","page_number":368,"box":{"x":117,"y":103,"width":743,"height":11}},{"id":"4b797268-f7d3-40cf-83f8-bd2107985468","block_type":"box","text":"upon exercise of the option the Fund will become obligated according to the terms of the underlying","page_number":368,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"f3275740-9a5a-41b5-8e15-514223af2db8","block_type":"box","text":"agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":368,"box":{"x":116,"y":134,"width":754,"height":12}},{"id":"403d6ff9-b069-494b-a4ab-3b4f87907b4e","block_type":"box","text":"required, to be cleared.","page_number":368,"box":{"x":117,"y":149,"width":177,"height":12}},{"id":"db7fa304-901f-43cf-b39b-028064778fef","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment","page_number":368,"box":{"x":116,"y":180,"width":770,"height":12}},{"id":"b6e678e4-f175-436c-820e-76df78bb8f35","block_type":"box","text":"or portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates","page_number":368,"box":{"x":116,"y":196,"width":772,"height":12}},{"id":"f5acda8d-aee9-43bf-9f38-25ae62e43638","block_type":"box","text":"purchasing at a later date. A Fund generally will use these transactions for hedging purposes, not for","page_number":368,"box":{"x":117,"y":211,"width":751,"height":12}},{"id":"3b5a0a34-e90a-4e47-b2b9-fe8bdc638fe8","block_type":"box","text":"speculation.","page_number":368,"box":{"x":116,"y":227,"width":94,"height":11}},{"id":"d58a1c28-28cb-4385-98fa-2c127bef9b98","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “— Risk","page_number":368,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"051f5e97-bbd3-4a46-b1cd-644cdb278a2c","block_type":"box","text":"Factors in Derivatives” above.","page_number":368,"box":{"x":117,"y":273,"width":226,"height":10}},{"id":"a771995a-820a-4110-8185-171ecd73e857","block_type":"box","text":"FLEX Options.","page_number":368,"box":{"x":116,"y":304,"width":114,"height":12}},{"id":"9f97e089-1c3b-4e97-98fb-af3b90b21c4a","block_type":"box","text":"FLEX Options are customized option contracts available through national securities","page_number":368,"box":{"x":231,"y":304,"width":623,"height":12}},{"id":"2447a783-28b7-4bd4-b6c9-7bc7259f6636","block_type":"box","text":"exchanges that are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX","page_number":368,"box":{"x":116,"y":320,"width":733,"height":12}},{"id":"dd5aae92-390d-41a5-98cf-8cfa815e85ba","block_type":"box","text":"Options are listed on a U.S. national securities exchange. FLEX Options provide investors with the","page_number":368,"box":{"x":116,"y":335,"width":736,"height":12}},{"id":"43c2bd20-26c3-46b3-b7ba-35ea0223c6dc","block_type":"box","text":"ability to customize assets referenced by the options, exercise prices, exercise styles (i.e., American","page_number":368,"box":{"x":116,"y":351,"width":750,"height":12}},{"id":"6db053ae-73a4-4498-b8a1-b432e16cfb17","block_type":"box","text":"style, exercisable any time prior to the expiration date, or European-style, exercisable only on the","page_number":368,"box":{"x":116,"y":366,"width":726,"height":12}},{"id":"efdf1e70-151c-48ad-a7a1-4241b9fe5689","block_type":"box","text":"option expiration date) and expiration dates, while achieving price discovery in competitive, transparent","page_number":368,"box":{"x":116,"y":382,"width":769,"height":12}},{"id":"3a1ed5fc-5cf1-4613-a54d-d525171927e9","block_type":"box","text":"auctions markets and avoiding the counterparty exposure of OTC options positions. Each option","page_number":368,"box":{"x":116,"y":397,"width":719,"height":12}},{"id":"26d79caa-9ffd-4a94-92c0-8d8110fe1c94","block_type":"box","text":"contract entitles the holder thereof to purchase (for the","page_number":368,"box":{"x":116,"y":413,"width":410,"height":12}},{"id":"63c84913-a7bc-4f52-8467-81301cb6f57c","block_type":"box","text":"call options) or sell (for the put options) shares","page_number":368,"box":{"x":527,"y":413,"width":349,"height":12}},{"id":"6ae5dcc5-0b7d-4ddf-8dc7-7d59e18a36e3","block_type":"box","text":"of the reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options,","page_number":368,"box":{"x":116,"y":428,"width":772,"height":12}},{"id":"1f21a2b7-d646-4416-9c18-9ed6a317cfc0","block_type":"box","text":"including both purchased and written put and call options (as further described below). The FLEX","page_number":368,"box":{"x":117,"y":444,"width":726,"height":12}},{"id":"02dcb26b-d09e-4b77-a2e9-2296733336f5","block_type":"box","text":"Options are all European style options, which means that they are exercisable at a predetermined","page_number":368,"box":{"x":116,"y":459,"width":730,"height":12}},{"id":"fe91b041-4e25-4c4e-bbf4-0643d5336f85","block_type":"box","text":"specified price (the “strike price”) only on the FLEX Option’s expiration date.","page_number":368,"box":{"x":116,"y":475,"width":569,"height":12}},{"id":"26d9a49a-f4b3-448b-a882-0731e78da137","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the","page_number":368,"box":{"x":116,"y":506,"width":752,"height":12}},{"id":"65a25a7c-dfc6-4fb1-9bf7-d5d3c9a7f031","block_type":"box","text":"“buyer for every seller and the seller for every buyer”, reducing counterparty risk for clearing members","page_number":368,"box":{"x":116,"y":521,"width":762,"height":12}},{"id":"666289ef-9e91-4450-a4fc-a72c3185a858","block_type":"box","text":"and options traders. Although guaranteed for settlement by the OCC, FLEX Options are still subject to","page_number":368,"box":{"x":116,"y":537,"width":762,"height":12}},{"id":"104cd8da-b157-4d33-b659-20aa86f01afd","block_type":"box","text":"counterparty risk with the OCC and subject to the risk that the OCC may fail to perform the settlement","page_number":368,"box":{"x":116,"y":552,"width":760,"height":12}},{"id":"2c9a1f6f-a5fb-4dde-98cf-3160c97230df","block_type":"box","text":"of the FLEX Options due to bankruptcy or other adverse reasons. A Fund bears the risk that the OCC","page_number":368,"box":{"x":116,"y":568,"width":759,"height":12}},{"id":"ba560b85-7220-4a4a-b7bc-bafc7001d678","block_type":"box","text":"will be unable or unwilling to perform its obligations under the FLEX Options contracts.","page_number":368,"box":{"x":116,"y":583,"width":646,"height":12}},{"id":"f0aa7058-3b9b-4312-8394-efd062e3b61d","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the","page_number":368,"box":{"x":116,"y":614,"width":744,"height":12}},{"id":"ab8408db-7e83-4e64-a1d5-1cccf6f3bcc1","block_type":"box","text":"FLEX Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and","page_number":368,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"2815c404-7d12-4413-bc75-72546b1583aa","block_type":"box","text":"rules: certain stock dividends or distributions, stock splits, reverse stock splits, rights offerings,","page_number":368,"box":{"x":117,"y":645,"width":702,"height":12}},{"id":"5c9f47a3-36b9-4ab8-b72a-888d26fa8ab2","block_type":"box","text":"distributions, reorganizations, recapitalizations, or reclassifications with respect to an underlying","page_number":368,"box":{"x":116,"y":661,"width":710,"height":12}},{"id":"4a378d57-1bb9-4852-9304-daa352711da4","block_type":"box","text":"security, or a merger, consolidation, dissolution or liquidation of the issuer of the underlying security.","page_number":368,"box":{"x":116,"y":676,"width":742,"height":12}},{"id":"224b325b-4daa-4ce5-b400-e0d99d2f360f","block_type":"box","text":"According to the OCC’s by-laws, the nature and extent of any such adjustment is to be determined by","page_number":368,"box":{"x":116,"y":692,"width":754,"height":12}},{"id":"a715225e-2f6b-4713-9fc3-bb462543c8c2","block_type":"box","text":"the OCC’s Securities Committee, in light of the circumstances known to it at the time such","page_number":368,"box":{"x":116,"y":707,"width":667,"height":12}},{"id":"3bfe7d9f-e1e6-4119-b633-b80f0f83bcb0","block_type":"box","text":"determination is made, based on its judgment as to what is appropriate for the protection of investors","page_number":368,"box":{"x":116,"y":723,"width":749,"height":12}},{"id":"95d10375-e45e-40e5-b3e3-77b91ac71720","block_type":"box","text":"and the public interest, taking into account such factors as fairness to holders and writers (or","page_number":368,"box":{"x":116,"y":738,"width":687,"height":12}},{"id":"790cfb26-96d2-4ea6-916c-a509a88a220c","block_type":"box","text":"purchasers and sellers) of the affected options, the maintenance of a fair and orderly market in the","page_number":368,"box":{"x":117,"y":754,"width":729,"height":12}},{"id":"1c57874b-8b47-4898-a10e-5c5a3cce471b","block_type":"box","text":"affected options, consistency of interpretation and practice, efficiency of exercise settlement","page_number":368,"box":{"x":116,"y":769,"width":682,"height":12}},{"id":"4d31a935-7418-46d0-95f8-7d60c4f76624","block_type":"box","text":"procedures, and the coordination with other clearing agencies of the clearance and settlement of","page_number":368,"box":{"x":117,"y":785,"width":717,"height":12}},{"id":"ceb4dc18-d733-4fb7-a9f6-53a5031f7d9a","block_type":"box","text":"transactions in the underlying interest.","page_number":368,"box":{"x":116,"y":800,"width":282,"height":12}},{"id":"90a6e8de-2b83-4a06-bec1-adabfff8fb62","block_type":"box","text":"Certain Considerations Regarding Options","page_number":368,"box":{"x":151,"y":831,"width":314,"height":12}},{"id":"826ae8f1-1589-4632-9ab8-d02e04e8cfb7","block_type":"box","text":". The FLEX Options in which each Fund may invest will","page_number":368,"box":{"x":467,"y":831,"width":414,"height":12}},{"id":"58ed3b56-5369-41ff-a4ad-db9fd6f33e29","block_type":"box","text":"be options on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a","page_number":368,"box":{"x":150,"y":847,"width":723,"height":12}},{"id":"c7786267-cd62-46ee-ab80-927484ad9e97","block_type":"box","text":"“Reference Asset”). As such, the value of a Fund’s FLEX Options will fluctuate with changes in the","page_number":368,"box":{"x":150,"y":862,"width":735,"height":12}},{"id":"096b6a90-7911-4bd1-a45d-828c0f1f94d0","block_type":"box","text":"value of the securities held by the ETF, and thus the ETF’s share price. In addition to the value of","page_number":368,"box":{"x":150,"y":878,"width":726,"height":12}},{"id":"276de9ae-711d-4d87-877f-0c28b692522b","block_type":"box","text":"II-29","page_number":368,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"5d8e5c36-917a-430b-837a-c37a5066ba8b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":368,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9374cff0-c99a-4776-9080-fbc1c7cc0780","block_type":"box","text":"the ETF, the value of an option, in general, will reflect, among other things, the time remaining until","page_number":369,"box":{"x":150,"y":87,"width":738,"height":12}},{"id":"baefe800-99cf-4d09-9234-49a2a62a727e","block_type":"box","text":"expiration (the end of the Outcome Period), the relationship of the exercise price to the market","page_number":369,"box":{"x":150,"y":102,"width":704,"height":13}},{"id":"e09cf24d-397c-48f9-8a32-4d5423f5b231","block_type":"box","text":"price of the Reference Asset, and general market conditions. Options that expire unexercised","page_number":369,"box":{"x":150,"y":118,"width":698,"height":12}},{"id":"9fb95422-361e-422e-a005-5bb3024a1c05","block_type":"box","text":"have no value.","page_number":369,"box":{"x":150,"y":134,"width":113,"height":9}},{"id":"a0bfdd8e-0298-4de9-b9de-2ec130b5daa0","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase","page_number":369,"box":{"x":150,"y":157,"width":734,"height":12}},{"id":"0699e07f-4cfd-4562-9ec5-eb1140feddb3","block_type":"box","text":"(for a call option) or sell (for a put option) the Reference Asset at a predetermined specified price","page_number":369,"box":{"x":150,"y":172,"width":723,"height":12}},{"id":"dd7c2a23-5477-4a81-b6fe-347111ddcf8d","block_type":"box","text":"(the “strike price”). When a Fund writes a call on the Reference Asset, it receives a premium and","page_number":369,"box":{"x":150,"y":188,"width":722,"height":12}},{"id":"be6d89ac-901f-45f7-8c29-40770fbdb26f","block_type":"box","text":"agrees that the purchaser of the call, upon exercise of the call, will receive from the Fund the","page_number":369,"box":{"x":150,"y":203,"width":693,"height":12}},{"id":"5a9801bc-f899-4d1f-bce4-f40a5ae2e6f2","block_type":"box","text":"delivery of a specified number of shares of the ETF in exchange for the strike price. When a Fund","page_number":369,"box":{"x":150,"y":219,"width":729,"height":12}},{"id":"1c0ec156-47c9-431f-97a0-75c76d788e62","block_type":"box","text":"buys a call on the Reference Asset, it pays a premium and has the same rights to such call as","page_number":369,"box":{"x":150,"y":234,"width":702,"height":12}},{"id":"a8474c3e-76f9-4eea-ac6c-6eb9b94147c0","block_type":"box","text":"indicated above. When a Fund buys a put on the Reference Asset, it pays a premium and has the","page_number":369,"box":{"x":150,"y":250,"width":730,"height":12}},{"id":"693d1e41-13ac-497d-af0a-5428fc6abe0b","block_type":"box","text":"right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":369,"box":{"x":150,"y":265,"width":710,"height":12}},{"id":"5c18f505-9b73-4bec-ac97-818feac8c052","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the","page_number":369,"box":{"x":150,"y":281,"width":705,"height":12}},{"id":"5e12b481-32d1-4000-8a6a-7ab67de2d0d5","block_type":"box","text":"Reference Asset, it receives a premium and the purchaser of the put has the right to require the","page_number":369,"box":{"x":151,"y":296,"width":714,"height":12}},{"id":"112b08f2-a634-4663-9522-60322e577974","block_type":"box","text":"Fund to deliver the specified number of shares of the ETF in exchange for the strike price.","page_number":369,"box":{"x":151,"y":312,"width":671,"height":12}},{"id":"35db5cdc-ccb3-42b6-9a34-91bd40e2898d","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may","page_number":369,"box":{"x":149,"y":335,"width":705,"height":12}},{"id":"699e0d0c-20ca-4636-95a8-ddcde1625e10","block_type":"box","text":"also utilize FLEX Options that are cash-settled. Cash-settled options give the holder the right to","page_number":369,"box":{"x":150,"y":351,"width":711,"height":12}},{"id":"40a3bd8b-0190-4b9a-ad42-ab6ad562344b","block_type":"box","text":"receive an amount (or owe an amount) of cash upon the exercise of the option. Gain or loss","page_number":369,"box":{"x":150,"y":366,"width":686,"height":12}},{"id":"52d2e935-ec19-45a7-b708-130d7c0b264e","block_type":"box","text":"depends on changes in the value of the ETF’s share price relative to the strike price for a given","page_number":369,"box":{"x":150,"y":382,"width":710,"height":12}},{"id":"c31e0f95-3655-426d-9cd4-bde798ec94be","block_type":"box","text":"option contract. The amount of cash is equal to the difference between the closing price of the","page_number":369,"box":{"x":150,"y":397,"width":702,"height":12}},{"id":"6ee4e96a-0a64-4ed9-855b-93746f5a25ab","block_type":"box","text":"ETF’s share price and the exercise price of the option contract times a specified multiple","page_number":369,"box":{"x":151,"y":413,"width":659,"height":12}},{"id":"d79b6e14-d25f-48e5-b97a-267bc0887674","block_type":"box","text":"(“multiplier”), which determines the total value for each point of such difference.","page_number":369,"box":{"x":150,"y":428,"width":593,"height":12}},{"id":"39eff05a-69ad-4c80-8ac8-b198dd4ef3ca","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":369,"box":{"x":150,"y":451,"width":311,"height":12}},{"id":"a3ea1068-2f36-462a-ae29-748b59183dff","block_type":"box","text":". If a Fund has purchased an option and exercises it","page_number":369,"box":{"x":462,"y":451,"width":390,"height":12}},{"id":"8f7172a3-d22e-4634-b71d-8d7114d6adae","block_type":"box","text":"before the closing value for that day is available, it runs the risk that the level of the Reference","page_number":369,"box":{"x":150,"y":467,"width":702,"height":12}},{"id":"c05aaeff-366e-4b06-aa5b-a4733c4b5094","block_type":"box","text":"Asset may subsequently change. If such a change causes the exercised option to fall out of the","page_number":369,"box":{"x":149,"y":482,"width":714,"height":12}},{"id":"5bfb5669-e890-4280-8f24-d482a4b9dc5e","block_type":"box","text":"money, the applicable Fund will be required to pay the difference between the closing Reference","page_number":369,"box":{"x":150,"y":498,"width":721,"height":12}},{"id":"ca24acb2-3cb6-4796-bca9-3ad47be834aa","block_type":"box","text":"Asset value and the exercise price of the option (times the applicable multiplier) to the assigned","page_number":369,"box":{"x":149,"y":513,"width":714,"height":12}},{"id":"218da2e0-c6b7-458c-943f-12013a499547","block_type":"box","text":"writer.","page_number":369,"box":{"x":149,"y":529,"width":51,"height":9}},{"id":"bfc548b5-4e87-465c-9f90-c4cdec61a973","block_type":"box","text":"Foreign Exchange Transactions.","page_number":369,"box":{"x":116,"y":560,"width":247,"height":12}},{"id":"6951621a-2e40-4da2-91fb-52050ff9676b","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX","page_number":369,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"6a7b46c9-cc91-466e-87e0-9fc73548ad73","block_type":"box","text":"forwards”) and currency swaps, purchase and sell currency options, currency futures and related","page_number":369,"box":{"x":116,"y":599,"width":723,"height":12}},{"id":"2163d170-5458-4007-ad10-b35d2f703bac","block_type":"box","text":"options thereon (collectively, “Currency Instruments”) for purposes of hedging against the decline in the","page_number":369,"box":{"x":116,"y":614,"width":772,"height":12}},{"id":"0f29d7bb-7d44-4eb3-8ae4-b1fbacb00cda","block_type":"box","text":"value of currencies in which its portfolio holdings are denominated against the U.S. dollar or, with","page_number":369,"box":{"x":116,"y":630,"width":725,"height":12}},{"id":"3b02dd87-2c3f-42f5-982b-3e5d668567c2","block_type":"box","text":"respect to certain Funds, to seek to enhance returns.","page_number":369,"box":{"x":117,"y":645,"width":397,"height":12}},{"id":"ca4b6338-0cd1-41ef-97d6-b18a8d61e6c3","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities","page_number":369,"box":{"x":116,"y":676,"width":729,"height":12}},{"id":"dbf6685e-04e0-49af-a310-b91d63c003f6","block_type":"box","text":"owned by a Fund, sold by a Fund but not","page_number":369,"box":{"x":116,"y":692,"width":305,"height":12}},{"id":"4b790560-7ebd-4282-bd7e-5e53f37ce68f","block_type":"box","text":"yet delivered, or committed or anticipated to be purchased by","page_number":369,"box":{"x":426,"y":692,"width":455,"height":12}},{"id":"d635fb11-b60f-49ef-b95a-96f8f549e43f","block_type":"box","text":"a Fund. As an illustration, a Fund may use such techniques to hedge the stated value in U.S. dollars of","page_number":369,"box":{"x":116,"y":707,"width":764,"height":12}},{"id":"6686e976-5f27-46b7-9305-60a5f39b821f","block_type":"box","text":"an investment in a yen-denominated security. For example, the Fund may purchase a foreign currency","page_number":369,"box":{"x":116,"y":723,"width":762,"height":12}},{"id":"15a3364e-c571-4af5-a132-b94da85139da","block_type":"box","text":"put option enabling it to sell a specified amount of yen","page_number":369,"box":{"x":117,"y":738,"width":398,"height":12}},{"id":"3eceabd0-4692-4834-b8ce-333389f7081f","block_type":"box","text":"for dollars at a specified price by a future date.","page_number":369,"box":{"x":521,"y":738,"width":344,"height":12}},{"id":"bf0c910c-b9b1-459b-a692-a577707cb6ec","block_type":"box","text":"To the extent the hedge is successful, a loss in the value of the yen relative to the dollar will tend to be","page_number":369,"box":{"x":116,"y":754,"width":759,"height":12}},{"id":"abf952a9-d0d5-4f48-af0b-830e5895da02","block_type":"box","text":"offset by an increase in the value of the put option. To offset, in whole or in part, the cost of acquiring","page_number":369,"box":{"x":116,"y":769,"width":748,"height":12}},{"id":"00f5d804-c7cd-485e-91f2-df2edc2c935e","block_type":"box","text":"such a put option, the Fund may also sell a call option which, if exercised, requires it to sell a specified","page_number":369,"box":{"x":116,"y":785,"width":758,"height":12}},{"id":"fd99f643-ad5e-4841-807a-0a70e7bc0c71","block_type":"box","text":"amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":369,"box":{"x":116,"y":800,"width":722,"height":12}},{"id":"8745cedc-91a8-44a2-be7a-958a874efa79","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from","page_number":369,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"d24bae07-ea25-40c9-8b6f-0292d410a3bc","block_type":"box","text":"increases in the relative value of the yen to the dollar. “Straddles” of the type that may be used by a","page_number":369,"box":{"x":117,"y":831,"width":742,"height":12}},{"id":"8ce3ac90-b2fc-41a7-a23b-eae33869956d","block_type":"box","text":"Fund are considered hedging transactions. Certain Funds have a fundamental investment restriction","page_number":369,"box":{"x":117,"y":847,"width":749,"height":12}},{"id":"b069b633-5ac4-43a2-853b-1176b17bb1a7","block_type":"box","text":"that restricts currency option strategies.","page_number":369,"box":{"x":116,"y":862,"width":298,"height":12}},{"id":"23151f05-6d32-4e49-90f9-bd993ad87105","block_type":"box","text":"II-30","page_number":369,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"086eb597-1868-41ba-8f43-4487a7c06070","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":369,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8aff4881-e04e-4d21-bff5-65a999674bc4","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation","page_number":370,"box":{"x":117,"y":87,"width":737,"height":12}},{"id":"73f59288-f251-4a63-a051-473c829951ca","block_type":"box","text":"risk. A Fund’s use of Currency Instruments to effect hedging strategies is intended to reduce the","page_number":370,"box":{"x":117,"y":102,"width":718,"height":13}},{"id":"41245d90-5f4c-45b5-bf4b-60345fe7e1cd","block_type":"box","text":"volatility of the NAV of the Fund’s shares; however, the use of such hedging strategies will not prevent","page_number":370,"box":{"x":116,"y":118,"width":763,"height":12}},{"id":"5e6ca0a0-44c5-4556-9eb5-f4903f8fcea2","block_type":"box","text":"the NAV of the Fund’s shares from fluctuating. Moreover, although Currency Instruments will be used","page_number":370,"box":{"x":116,"y":134,"width":757,"height":12}},{"id":"a02d13fd-6341-4748-b6a7-492c32e9b8fb","block_type":"box","text":"with the intention of hedging against adverse currency movements, transactions in Currency","page_number":370,"box":{"x":116,"y":149,"width":689,"height":12}},{"id":"8dff650c-7457-4e39-80a8-e39d4b373920","block_type":"box","text":"Instruments involve the risk that anticipated currency movements will not be accurately predicted and","page_number":370,"box":{"x":117,"y":165,"width":755,"height":12}},{"id":"d8552cbd-27f6-4233-a402-e66b4a49f15e","block_type":"box","text":"that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges against","page_number":370,"box":{"x":116,"y":180,"width":706,"height":12}},{"id":"db12aa03-4ece-4226-9d10-73d1dd4a46de","block_type":"box","text":"anticipated currency movements that do not occur, the Fund may realize losses and decrease its total","page_number":370,"box":{"x":116,"y":196,"width":761,"height":12}},{"id":"4370e6bc-7d6f-43a6-8074-9761f270b0b1","block_type":"box","text":"return. Furthermore, a Fund will only engage in hedging activities from time to time and may not be","page_number":370,"box":{"x":117,"y":211,"width":738,"height":12}},{"id":"ca5995b9-fa62-4487-9f88-2ddb5ea6bc39","block_type":"box","text":"engaging in hedging activities when movements in currency exchange rates actually occur.","page_number":370,"box":{"x":116,"y":227,"width":681,"height":12}},{"id":"0089765d-6791-488e-bf79-2b368c16c514","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign","page_number":370,"box":{"x":117,"y":258,"width":752,"height":12}},{"id":"159ca92c-9ee7-4baf-8cca-7a762d77c40f","block_type":"box","text":"or domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified","page_number":370,"box":{"x":116,"y":273,"width":772,"height":12}},{"id":"d8f56991-74b7-47b7-9e86-b705e0d2c696","block_type":"box","text":"amount of a particular currency. There are no limitations on daily price moves in such forward","page_number":370,"box":{"x":116,"y":289,"width":699,"height":12}},{"id":"a09c73c1-0b6e-4e75-b72c-502da15a91c1","block_type":"box","text":"contracts, and banks and dealers are not required to continue to make markets in such contracts.","page_number":370,"box":{"x":116,"y":304,"width":728,"height":12}},{"id":"6244ce45-8c08-48cd-b21b-78fc1958a4a5","block_type":"box","text":"There have been periods during which certain banks or dealers have refused to quote prices for such","page_number":370,"box":{"x":116,"y":320,"width":757,"height":12}},{"id":"7740e8fc-b561-4c5d-bbc7-2ffec88daeda","block_type":"box","text":"forward contracts or have quoted prices with an unusually wide spread between the price at which the","page_number":370,"box":{"x":116,"y":335,"width":761,"height":12}},{"id":"3bded002-7692-4598-9c79-8a310e51b0c4","block_type":"box","text":"bank or dealer is prepared to buy and that at which it is prepared to sell. Governmental imposition of","page_number":370,"box":{"x":117,"y":351,"width":747,"height":12}},{"id":"09364e67-e105-432f-b30b-5947fdb7abe9","block_type":"box","text":"currency controls might limit any such forward contract trading. With respect to its trading of forward","page_number":370,"box":{"x":116,"y":366,"width":746,"height":12}},{"id":"a2a7d9ec-4a44-45bc-ac53-5859366653a1","block_type":"box","text":"contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a","page_number":370,"box":{"x":116,"y":382,"width":689,"height":12}},{"id":"5093aab2-9549-470b-a493-999171c8f5ed","block_type":"box","text":"counterparty would deprive the Fund of any profit potential or force the Fund to cover its commitments","page_number":370,"box":{"x":116,"y":397,"width":762,"height":12}},{"id":"233b30c1-06fc-4d12-a0fd-8746086a1a26","block_type":"box","text":"for resale, if any, at the then market price and could result in a loss to the Fund.","page_number":370,"box":{"x":116,"y":413,"width":595,"height":12}},{"id":"6b23d611-0c3c-49bf-97ad-0e87cf0d3816","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if","page_number":370,"box":{"x":117,"y":444,"width":709,"height":12}},{"id":"281c9558-9fdc-4ab6-ad13-e33f755ff6ea","block_type":"box","text":"correctly anticipated, in the event that (i) the currency exchange rate movement is so generally","page_number":370,"box":{"x":116,"y":459,"width":707,"height":12}},{"id":"a9c11127-9c94-4140-948f-4e7b5218c9f1","block_type":"box","text":"anticipated that the Fund is not able to enter into a hedging transaction at an effective price, or (ii) the","page_number":370,"box":{"x":116,"y":475,"width":757,"height":12}},{"id":"25fe4b98-44fb-40b0-a0af-5d3e313388bf","block_type":"box","text":"currency exchange rate movement relates to a market with respect to which Currency Instruments are","page_number":370,"box":{"x":116,"y":490,"width":764,"height":12}},{"id":"8a6fe0c4-26e7-4e5e-897a-605fb6ab61cb","block_type":"box","text":"not available and it is not possible to engage in effective foreign currency hedging. The cost to a Fund","page_number":370,"box":{"x":117,"y":506,"width":759,"height":12}},{"id":"59bfc61d-310e-4942-953a-f08d0aec59c4","block_type":"box","text":"of engaging in foreign currency transactions varies with such factors as the currencies involved, the","page_number":370,"box":{"x":116,"y":521,"width":743,"height":12}},{"id":"c754ddf7-715c-4891-a8b8-cdd40771e792","block_type":"box","text":"length of the contract period and the market conditions then prevailing. Since transactions in foreign","page_number":370,"box":{"x":117,"y":537,"width":744,"height":12}},{"id":"2d9de64b-b000-4544-bdbb-ef45a127c702","block_type":"box","text":"currency exchange usually are conducted on a principal basis, no fees or commissions are involved.","page_number":370,"box":{"x":116,"y":552,"width":750,"height":12}},{"id":"c0d4f6ca-f13e-448f-a384-9ab556f0d8de","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns","page_number":370,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"7ee82e38-6b83-4fd1-bd8d-78264481d62d","block_type":"box","text":"(including receivables for unsettled securities sales), or has committed to purchase or anticipates","page_number":370,"box":{"x":117,"y":599,"width":724,"height":12}},{"id":"07724004-f48e-46b9-b069-a7a7659a163b","block_type":"box","text":"purchasing, which are denominated in such currency.","page_number":370,"box":{"x":117,"y":614,"width":401,"height":12}},{"id":"07b1dafe-b82d-43e7-ade9-35cb1674b55e","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":370,"box":{"x":117,"y":645,"width":266,"height":12}},{"id":"dfe4a3ea-a9d1-4637-84d3-802f79b98cad","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified","page_number":370,"box":{"x":384,"y":645,"width":459,"height":12}},{"id":"9acffb73-6a52-4d50-bb38-7d360786a60f","block_type":"box","text":"amount of a specified currency or multinational curr","page_number":370,"box":{"x":116,"y":661,"width":373,"height":12}},{"id":"98477591-bd0f-4481-b72b-78dffe99da30","block_type":"box","text":"ency unit at a specified price and specified future","page_number":370,"box":{"x":489,"y":661,"width":355,"height":12}},{"id":"d91d24c0-f656-49cd-a775-75f683c99afd","block_type":"box","text":"date. Spot foreign exchange transactions are similar","page_number":370,"box":{"x":116,"y":676,"width":380,"height":12}},{"id":"bf63d162-70eb-4150-ba17-64ece1812e8a","block_type":"box","text":"but are settled in the current, or “spot”, market. A","page_number":370,"box":{"x":501,"y":676,"width":354,"height":12}},{"id":"73171bee-c2f4-486b-913d-5f583f4907e4","block_type":"box","text":"Fund will enter into foreign exchange transactions for pur","page_number":370,"box":{"x":117,"y":692,"width":413,"height":12}},{"id":"69221805-6d08-4180-abff-8269fd10b5ca","block_type":"box","text":"poses of hedging either a specific transaction or","page_number":370,"box":{"x":531,"y":692,"width":347,"height":12}},{"id":"28d98596-7072-4c1e-acc5-7045cb15e445","block_type":"box","text":"a portfolio position, or, with respect to certain Funds,","page_number":370,"box":{"x":116,"y":707,"width":379,"height":12}},{"id":"991c896d-a753-428f-bb30-f30c10925f41","block_type":"box","text":"to seek to enhance returns. FX forwards involve","page_number":370,"box":{"x":501,"y":707,"width":349,"height":10}},{"id":"8e48c46e-ee2d-4978-bb40-8c4f9a24b491","block_type":"box","text":"substantial currency risk, credit risk and liquidity","page_number":370,"box":{"x":116,"y":723,"width":346,"height":12}},{"id":"21556c1b-bc0b-4c60-9b4f-361a06ba4d64","block_type":"box","text":"risk. A Fund may enter into a foreign exchange","page_number":370,"box":{"x":468,"y":723,"width":340,"height":12}},{"id":"db742759-9e44-429f-bc9f-c062c3072891","block_type":"box","text":"transaction for purposes of hedging a specific trans","page_number":370,"box":{"x":116,"y":738,"width":371,"height":12}},{"id":"4966758d-3d18-47e6-9784-3d71c35a9c5f","block_type":"box","text":"action by, for example, purchasing a currency needed","page_number":370,"box":{"x":488,"y":738,"width":391,"height":12}},{"id":"e0195d42-79b9-48d9-b6c2-35b08e05f7d5","block_type":"box","text":"to settle a security transaction or selling a currency in which the Fund has received or anticipates","page_number":370,"box":{"x":116,"y":754,"width":702,"height":12}},{"id":"99529af8-07b0-475b-95e4-c18321511cb6","block_type":"box","text":"receiving a dividend or distribution. A Fund may enter","page_number":370,"box":{"x":117,"y":769,"width":388,"height":12}},{"id":"e79409ec-a161-47c6-b8ca-c4f8a3cc19f3","block_type":"box","text":"into a foreign exchange transaction for purposes of","page_number":370,"box":{"x":510,"y":769,"width":370,"height":12}},{"id":"3d567d35-1ff7-4f25-9d11-aa652f4ab657","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is","page_number":370,"box":{"x":117,"y":785,"width":714,"height":12}},{"id":"1679322b-ca35-4796-863c-571eb5667fbe","block_type":"box","text":"denominated or by purchasing a currency in which t","page_number":370,"box":{"x":116,"y":800,"width":376,"height":12}},{"id":"8f8be2e4-9519-4861-9eb9-6a1463fc101a","block_type":"box","text":"he Fund anticipates acquiring a portfolio position in","page_number":370,"box":{"x":493,"y":800,"width":368,"height":12}},{"id":"3a750c88-698c-483e-b9c5-10f9c694783c","block_type":"box","text":"the near future. A Fund may also hedge a currency by entering into a transaction in a Currency","page_number":370,"box":{"x":116,"y":816,"width":690,"height":12}},{"id":"67342f6c-938e-4158-b67d-783bfef28e9d","block_type":"box","text":"Instrument denominated in a currency other","page_number":370,"box":{"x":117,"y":831,"width":322,"height":12}},{"id":"665f05b4-dbde-4cb3-8f0f-ba268b20d300","block_type":"box","text":"than the currency being hedged (a “cross-hedge”). A Fund","page_number":370,"box":{"x":439,"y":831,"width":429,"height":12}},{"id":"451fe5c6-cad3-4eab-ba73-a243d75ea9b1","block_type":"box","text":"will only enter into a cross-hedge if the Manager believe","page_number":370,"box":{"x":116,"y":847,"width":405,"height":12}},{"id":"df3a4067-0a97-4336-9740-4c1efd56c6b6","block_type":"box","text":"s that (i) there is a demonstrably high correlation","page_number":370,"box":{"x":522,"y":847,"width":356,"height":12}},{"id":"ee073215-8b99-4034-843e-aa17d2be8127","block_type":"box","text":"between the currency in which the cross-","page_number":370,"box":{"x":117,"y":862,"width":297,"height":12}},{"id":"72babcd5-f79a-4ef2-a279-087a29136087","block_type":"box","text":"hedge is denominated and the currency being hedged, and","page_number":370,"box":{"x":415,"y":862,"width":434,"height":12}},{"id":"6c0975f7-6e79-428b-8a0f-b40a94270ecb","block_type":"box","text":"(ii) executing a cross-hedge through the curren","page_number":370,"box":{"x":117,"y":878,"width":339,"height":12}},{"id":"99644a53-40e1-4264-9fa0-29da317deebf","block_type":"box","text":"cy in which the cross-hedge is denominated will be","page_number":370,"box":{"x":457,"y":878,"width":374,"height":12}},{"id":"0544ef69-1e0e-4f6b-9b60-7814b28caccd","block_type":"box","text":"II-31","page_number":370,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"ac97ebdc-2e7b-45c6-8e42-54d0c4379ac3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":370,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9d4c8789-38de-4f2d-ab39-a72676a28113","block_type":"box","text":"significantly more cost-effective or provide substant","page_number":371,"box":{"x":116,"y":87,"width":373,"height":12}},{"id":"d62c7d72-0d11-4bb9-9ffb-5667b55c9dac","block_type":"box","text":"ially greater liquidity than executing a similar hedging","page_number":371,"box":{"x":490,"y":87,"width":388,"height":12}},{"id":"9410a262-222e-4b9e-ac7a-96e814d14c0c","block_type":"box","text":"transaction by means of the currency being hedged.","page_number":371,"box":{"x":116,"y":102,"width":383,"height":13}},{"id":"73a7ec5f-a5ba-4cb1-aa39-fedce825307b","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on","page_number":371,"box":{"x":116,"y":134,"width":765,"height":12}},{"id":"ac2c2b13-be69-4266-a8e8-7e9266bd53ee","block_type":"box","text":"the value of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when","page_number":371,"box":{"x":116,"y":149,"width":747,"height":12}},{"id":"8d6144b3-32f3-4d7c-bf1b-baa23db2c128","block_type":"box","text":"the currency to which the Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar.","page_number":371,"box":{"x":116,"y":165,"width":733,"height":12}},{"id":"a4c085a3-0182-4b96-a237-cd8c7560d52b","block_type":"box","text":"Proxy hedging entails entering into a forward contract to sell a currency whose changes in value are","page_number":371,"box":{"x":117,"y":180,"width":746,"height":12}},{"id":"6c55fefb-c546-49a7-8e6e-8a84e5d3f111","block_type":"box","text":"generally considered to be linked to a currency or currencies in which some or all of the Fund’s","page_number":371,"box":{"x":116,"y":196,"width":709,"height":12}},{"id":"ccee8688-fe1b-4c70-baf7-741f60a37de4","block_type":"box","text":"securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy hedging involves","page_number":371,"box":{"x":116,"y":211,"width":742,"height":12}},{"id":"1079f6c0-22fc-481e-ad46-163b425d83dc","block_type":"box","text":"some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":371,"box":{"x":116,"y":227,"width":742,"height":12}},{"id":"4426d43a-315a-45d8-b2e5-d614cdf12b90","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a","page_number":371,"box":{"x":116,"y":242,"width":722,"height":12}},{"id":"581074c5-aa67-4af8-9f0b-a0690b313045","block_type":"box","text":"degree or in a direction that is not anticipated. In addition, there is the risk that the perceived linkage","page_number":371,"box":{"x":116,"y":258,"width":748,"height":12}},{"id":"173e4d34-9715-4b98-b612-4b559f529882","block_type":"box","text":"between various currencies may not be present, including during the particular time that a Fund is","page_number":371,"box":{"x":117,"y":273,"width":729,"height":12}},{"id":"eb4d0cc4-32a7-40c1-a306-cf06e5100a2c","block_type":"box","text":"engaging in proxy hedging.","page_number":371,"box":{"x":116,"y":289,"width":206,"height":12}},{"id":"1fda9128-c1b2-4582-96e9-d843249ed87d","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more","page_number":371,"box":{"x":116,"y":320,"width":708,"height":12}},{"id":"70990173-21af-4113-93f0-e5d8dc7f9d65","block_type":"box","text":"currencies that are expected to decline in value relative to other currencies to which the Fund has or in","page_number":371,"box":{"x":116,"y":335,"width":766,"height":12}},{"id":"143a1d2a-57f2-410f-87ec-7b214d640263","block_type":"box","text":"which the Fund expects to have portfolio exposure. For example, a Fund may hold both Canadian","page_number":371,"box":{"x":116,"y":351,"width":731,"height":12}},{"id":"4680c26e-52c6-4cb5-860f-8ae04031311f","block_type":"box","text":"government bonds and Japanese government bonds, and the Manager or sub-adviser may believe","page_number":371,"box":{"x":116,"y":366,"width":741,"height":12}},{"id":"79820271-7028-48fb-a269-07607934e074","block_type":"box","text":"that Canadian dollars will deteriorate against Japanese yen. The Fund would sell Canadian dollars to","page_number":371,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"bc57be33-15ee-4662-b75a-8b10306885c1","block_type":"box","text":"reduce its exposure to that currency and buy Japanese yen. This strategy would be a hedge against a","page_number":371,"box":{"x":117,"y":397,"width":761,"height":12}},{"id":"a89a7311-7ba6-4de2-b339-105478ec8e70","block_type":"box","text":"decline in the value of Canadian dollars, although it would expose the Fund to declines in the value of","page_number":371,"box":{"x":116,"y":413,"width":758,"height":12}},{"id":"ed23ea59-e92d-4513-8989-b5a8ab1a46a5","block_type":"box","text":"the Japanese yen relative to the U.S. dollar.","page_number":371,"box":{"x":116,"y":428,"width":331,"height":12}},{"id":"16e48e0c-ba2b-4375-bed6-4b6dc9c69d9d","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as","page_number":371,"box":{"x":116,"y":459,"width":690,"height":12}},{"id":"e3f495d5-88de-4754-93b7-f2326b59f1ff","block_type":"box","text":"non-deliverable forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be","page_number":371,"box":{"x":117,"y":475,"width":748,"height":12}},{"id":"f200ff39-e2a3-4a93-99be-860531b1318b","block_type":"box","text":"thinly traded or are denominated in non-convertible foreign currency, where the profit or loss at the","page_number":371,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"a9adf615-a0c0-47d1-a73c-d921d5593eeb","block_type":"box","text":"time at the settlement date is calculated by taking the difference between the agreed upon exchange","page_number":371,"box":{"x":116,"y":506,"width":752,"height":12}},{"id":"cd2d2d7a-614f-4b71-a044-9bb89f3e2f7a","block_type":"box","text":"rate and the spot rate at the time of settlement, for an agreed upon notional amount of funds. All NDFs","page_number":371,"box":{"x":117,"y":521,"width":765,"height":12}},{"id":"a6068b20-7d1d-411a-85a2-69d816d4a657","block_type":"box","text":"have a fixing date and a settlement date. The fixing date is the date at which the difference between","page_number":371,"box":{"x":117,"y":537,"width":746,"height":12}},{"id":"2e69cd60-bd9f-4f7f-80c0-0ff42b948d45","block_type":"box","text":"the prevailing market exchange rate and the agreed upon exchange rate is calculated. The settlement","page_number":371,"box":{"x":116,"y":552,"width":761,"height":12}},{"id":"93035cc3-38db-4201-bf58-106e2432ce01","block_type":"box","text":"date is the date by which the payment of the difference is due to the party receiving payment. NDFs","page_number":371,"box":{"x":116,"y":568,"width":745,"height":12}},{"id":"f48b119c-61c0-47fb-b46c-4b050a3e840f","block_type":"box","text":"are commonly quoted for time periods of one month up to two years, and are normally quoted and","page_number":371,"box":{"x":116,"y":583,"width":733,"height":12}},{"id":"3de04439-7187-4a11-a869-fd1e36ea2b43","block_type":"box","text":"settled in U.S. dollars. They are often used to gain exposure to and/or hedge exposure to foreign","page_number":371,"box":{"x":116,"y":599,"width":723,"height":12}},{"id":"657fc63f-7ec3-4794-a779-e8d999172c1a","block_type":"box","text":"currencies that are not internationally traded.","page_number":371,"box":{"x":116,"y":614,"width":337,"height":12}},{"id":"3305d8c0-58f7-4c8e-a31a-28c80efa16bf","block_type":"box","text":"Currency Futures.","page_number":371,"box":{"x":117,"y":645,"width":132,"height":12}},{"id":"aa36c43a-0493-4495-9784-f224744e9972","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":371,"box":{"x":250,"y":645,"width":626,"height":12}},{"id":"da76cf67-87f3-49ac-82d8-3237e183ed46","block_type":"box","text":"currency through use of currency futures or options on currency futures. Currency futures are similar to","page_number":371,"box":{"x":116,"y":661,"width":764,"height":12}},{"id":"73690bb5-6a9f-4893-b31b-f2dd01b09992","block_type":"box","text":"forward foreign exchange transactions except that futures are standardized, exchange-traded contracts","page_number":371,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"2b3855b5-e7b0-46e2-bc87-ad66fed69d22","block_type":"box","text":"while forward foreign exchange transactions are traded in the OTC market. Currency futures involve","page_number":371,"box":{"x":116,"y":692,"width":742,"height":12}},{"id":"51291a5b-c9b1-4a78-8f23-123401dc27d8","block_type":"box","text":"substantial currency risk as well as the risks discussed above in “— Futures.”","page_number":371,"box":{"x":116,"y":707,"width":572,"height":12}},{"id":"60837c0f-8ef5-4099-affa-c3a3d63c213c","block_type":"box","text":"Currency Options.","page_number":371,"box":{"x":117,"y":738,"width":133,"height":12}},{"id":"eb1a5c0f-d101-4b32-bcc9-322b867717ff","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a","page_number":371,"box":{"x":256,"y":738,"width":615,"height":12}},{"id":"9fe68f82-0272-4af9-a662-4ba13a00ecce","block_type":"box","text":"currency through the use of currency options. Certain Funds have fundamental investment restrictions","page_number":371,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"ee228f74-de59-4ed1-89b4-de3f3079afed","block_type":"box","text":"that permit the purchase of currency options, but prohibit the writing of currency options. Currency","page_number":371,"box":{"x":116,"y":769,"width":727,"height":12}},{"id":"5768262f-2208-4b39-b28a-bae7cb9c3ee6","block_type":"box","text":"options are similar to options on securities. For example, in consideration for an option premium the","page_number":371,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"8ba16a4a-a53e-4a46-b69b-91c63e7a163c","block_type":"box","text":"writer of a currency option is obligated to sell (in the case of a call option) or purchase (in the case of a","page_number":371,"box":{"x":116,"y":800,"width":760,"height":12}},{"id":"a2b105b4-8ac8-45d8-8349-3d8aa4e1043a","block_type":"box","text":"put option) a specified amount of a specified currency on or before the expiration date for a specified","page_number":371,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"21c01282-d775-4e93-bebe-737d05da9013","block_type":"box","text":"amount of another currency. A Fund may engage in transactions in options on currencies either on","page_number":371,"box":{"x":116,"y":831,"width":737,"height":12}},{"id":"71f2b107-489b-4c87-a3a2-16aff8ce2019","block_type":"box","text":"exchanges or OTC markets. Such transactions in options may include exotic options on currencies,","page_number":371,"box":{"x":116,"y":847,"width":743,"height":12}},{"id":"52da5dad-b396-4d67-acaa-a2c4197222a6","block_type":"box","text":"which are typically traded in OTC markets and have additional features that result in different payment","page_number":371,"box":{"x":116,"y":862,"width":763,"height":12}},{"id":"3ecb41ae-e682-4b71-b31a-057e877c98a9","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered","page_number":371,"box":{"x":116,"y":878,"width":771,"height":12}},{"id":"e78db135-3e8c-4e77-a455-fd6161961ea0","block_type":"box","text":"II-32","page_number":371,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"16657971-6b7c-450b-abc0-d2e99177877e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":371,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5ec912f3-184e-4628-bf43-e59ca4a9ac6f","block_type":"box","text":"call options on up to 100% of the currencies in its portfolio. See “— Options” above. Currency options","page_number":372,"box":{"x":116,"y":87,"width":757,"height":12}},{"id":"46738b28-f752-469c-ae61-612eb81248b1","block_type":"box","text":"involve substantial currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":372,"box":{"x":117,"y":103,"width":651,"height":12}},{"id":"8fac537d-9a89-4b05-9e99-f809e28c742b","block_type":"box","text":"Currency Swaps.","page_number":372,"box":{"x":117,"y":134,"width":131,"height":12}},{"id":"6104d520-4473-4940-a023-f01651f631d9","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency","page_number":372,"box":{"x":248,"y":134,"width":557,"height":12}},{"id":"f665ad02-c0c9-4bc5-8f52-04bcd3cc4e5f","block_type":"box","text":"fluctuations or to hedge portfolio positions. Currency swaps are transactions in which one currency is","page_number":372,"box":{"x":116,"y":149,"width":754,"height":12}},{"id":"9eadc21d-e2b3-4ab8-9552-ca34e8d6e4ee","block_type":"box","text":"simultaneously bought for a second currency on a spot basis and sold for the second currency on a","page_number":372,"box":{"x":116,"y":165,"width":743,"height":12}},{"id":"493ada18-1d36-4f70-8b17-5839ca483642","block_type":"box","text":"forward basis. Currency swaps involve the exchange of the rights of a Fund and another party to make","page_number":372,"box":{"x":116,"y":180,"width":767,"height":12}},{"id":"7eaf651a-b4f6-42ea-b236-55c813b29521","block_type":"box","text":"or receive payments in specified currencies, and typically require the delivery of the entire principal","page_number":372,"box":{"x":116,"y":196,"width":738,"height":12}},{"id":"a227461c-b621-4723-95b2-871ae8956015","block_type":"box","text":"value of one designated currency in exchange for the other designated currency. As a result, the entire","page_number":372,"box":{"x":116,"y":211,"width":768,"height":12}},{"id":"8ac330e0-ddab-4087-869b-5430a0409c2f","block_type":"box","text":"principal value of a currency swap is subject to the risk that the other party to the swap will default on","page_number":372,"box":{"x":117,"y":227,"width":753,"height":12}},{"id":"af0753f9-5399-4d3c-a4fc-fb6e3ac568d0","block_type":"box","text":"its contractual delivery obligations.","page_number":372,"box":{"x":117,"y":242,"width":260,"height":12}},{"id":"ba363435-04d9-45fa-9f49-62b522a65bdb","block_type":"box","text":"Digital Asset Exposure.","page_number":372,"box":{"x":116,"y":273,"width":192,"height":12}},{"id":"e3c6303a-95c8-4933-8d41-08b68ee62dfc","block_type":"box","text":"Digital assets, such as bitcoin and ether, are created and transmitted through","page_number":372,"box":{"x":310,"y":273,"width":577,"height":12}},{"id":"fb983b46-1277-400b-bf16-5f286c04bf2b","block_type":"box","text":"the operations of peer-to-peer networks of computers, known as nodes, that operate on cryptographic","page_number":372,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"0a65e025-9be7-4def-844c-fb600049147f","block_type":"box","text":"computer-code based logic, called a protocol. Digital assets are part of a new and rapidly changing","page_number":372,"box":{"x":116,"y":304,"width":739,"height":12}},{"id":"bf0d1922-e263-43cd-823f-86933102a94a","block_type":"box","text":"industry, and the further development of digital asset networks is subject to a variety of factors that are","page_number":372,"box":{"x":117,"y":320,"width":765,"height":12}},{"id":"da72197c-d206-49a0-862d-dda8df0dffc1","block_type":"box","text":"difficult to evaluate. Digital assets are relatively new assets with limited histories.","page_number":372,"box":{"x":116,"y":335,"width":602,"height":12}},{"id":"2149d5b0-1d06-4cac-a03b-88ffcea7ff42","block_type":"box","text":"Risks Related to Digital Assets.","page_number":372,"box":{"x":116,"y":366,"width":238,"height":12}},{"id":"bb388ac9-ac78-45b4-9d81-a6e95d98b97b","block_type":"box","text":"Digital assets were only introduced within the past 15 years, and the","page_number":372,"box":{"x":355,"y":366,"width":511,"height":12}},{"id":"d5fe5a94-6612-4ed8-a3c6-301226eacae9","block_type":"box","text":"value of such digital assets is subject to a number of factors relating to the capabilities and","page_number":372,"box":{"x":116,"y":382,"width":676,"height":12}},{"id":"7ec1472c-9043-4d17-b1c1-425ae83eef9a","block_type":"box","text":"development of blockchain technologies, such as the recentness of their development, their","page_number":372,"box":{"x":116,"y":397,"width":685,"height":12}},{"id":"179bfbab-6fe1-4f43-9d22-51b5c82bb038","block_type":"box","text":"dependence on the internet and other technologies, their dependence on the role played by users,","page_number":372,"box":{"x":116,"y":413,"width":735,"height":12}},{"id":"8c6b3154-b984-4382-8524-e79873592732","block_type":"box","text":"developers, miners and validators and the potential for malicious activity. Given the recentness of the","page_number":372,"box":{"x":116,"y":428,"width":756,"height":12}},{"id":"948a6372-e30f-4c42-aac7-0b66a6ab30d7","block_type":"box","text":"development of digital asset networks, digital assets may not function as intended and parties may be","page_number":372,"box":{"x":116,"y":444,"width":760,"height":12}},{"id":"317675b7-9e17-4e43-a95b-d61ba60f9bf7","block_type":"box","text":"unwilling to use digital assets, which would dampen the growth, if any, of digital asset networks.","page_number":372,"box":{"x":117,"y":459,"width":713,"height":12}},{"id":"76749c3c-de37-4557-9632-077c98fdd89f","block_type":"box","text":"The trading prices of many digital assets, including bitcoin and ether, have experienced extreme","page_number":372,"box":{"x":116,"y":490,"width":718,"height":12}},{"id":"42ba1e33-5c47-4fe9-b1d9-32a25c22ec06","block_type":"box","text":"volatility in recent periods and may continue to do so. Extreme volatility in the future, including further","page_number":372,"box":{"x":116,"y":506,"width":755,"height":12}},{"id":"2721fdfe-48c8-4cd7-b6f8-ef8a7d1903e4","block_type":"box","text":"declines in the trading prices of bitcoin and ether, could have a material adverse effect on the value of","page_number":372,"box":{"x":116,"y":521,"width":760,"height":12}},{"id":"b486a1ce-be53-4d6c-a8bc-3da8e519be86","block_type":"box","text":"such digital asset investments. The value of digital assets is subject to a number of factors relating to","page_number":372,"box":{"x":116,"y":537,"width":754,"height":12}},{"id":"c4d4d730-f455-40eb-861a-135c5a90b1ef","block_type":"box","text":"the their fundamental investment characteristics, including the fact that digital assets are bearer","page_number":372,"box":{"x":116,"y":552,"width":714,"height":12}},{"id":"4de2bad9-0807-4f5e-b4c0-7bf6870062b3","block_type":"box","text":"instruments and loss, theft, destruction, or compromise of the associated private keys could result in","page_number":372,"box":{"x":117,"y":568,"width":748,"height":12}},{"id":"ca6da0bd-4813-4059-a7fe-0a8f262babd4","block_type":"box","text":"permanent loss of the asset, and the capabilities and development of blockchain technologies such as","page_number":372,"box":{"x":117,"y":583,"width":762,"height":12}},{"id":"9de8b7d6-b4e1-4b53-a899-1846aea627c8","block_type":"box","text":"the Bitcoin or Ethereum blockchain.","page_number":372,"box":{"x":116,"y":599,"width":269,"height":9}},{"id":"f96055df-f025-4d29-b74a-ea193fec6d9b","block_type":"box","text":"The opaque nature of the digital asset market poses asset verification challenges for market","page_number":372,"box":{"x":116,"y":630,"width":688,"height":12}},{"id":"0348a1b0-eb36-4567-bd5f-18dc7649d068","block_type":"box","text":"participants, regulators and auditors and gives rise to an increased risk of manipulation and fraud,","page_number":372,"box":{"x":117,"y":645,"width":729,"height":12}},{"id":"070c4cb1-6186-41a1-9f7b-ce314abc98ab","block_type":"box","text":"including the potential for Ponzi schemes, bucket shops and pump and dump schemes. Digital assets","page_number":372,"box":{"x":117,"y":661,"width":753,"height":12}},{"id":"9c748954-e7e3-4080-b65e-243b528a1f2b","block_type":"box","text":"have in the past been used to facilitate illicit activities. If a digital asset was used to facilitate illicit","page_number":372,"box":{"x":117,"y":676,"width":715,"height":12}},{"id":"9a9a09f4-32c0-47c6-b54e-27a3ad5c46da","block_type":"box","text":"activities, businesses that facilitate transactions in such digital assets could be at increased risk of","page_number":372,"box":{"x":116,"y":692,"width":727,"height":12}},{"id":"d020cc0f-b09e-4e89-96ff-039fd438f8fc","block_type":"box","text":"potential criminal or civil liability or lawsuits, or of having banking or other services cut off, and such","page_number":372,"box":{"x":117,"y":707,"width":734,"height":12}},{"id":"d23cda45-0454-4d6a-8222-84c6c0bcfa1f","block_type":"box","text":"digital asset could be removed from digital asset platforms. Any of the aforementioned occurrences","page_number":372,"box":{"x":116,"y":723,"width":736,"height":12}},{"id":"b043ef02-adaa-4d7e-a246-23631ce1cbe4","block_type":"box","text":"could adversely affect the price of the relevant digital asset, the attractiveness of the respective","page_number":372,"box":{"x":116,"y":738,"width":706,"height":12}},{"id":"e0dcdd91-88d0-45b7-94a4-22173813a622","block_type":"box","text":"blockchain network and investments in digital assets.","page_number":372,"box":{"x":117,"y":754,"width":392,"height":12}},{"id":"14efc632-d606-4379-ba6c-f28c85420b4f","block_type":"box","text":"If a malicious actor or botnet (a volunteer or hacked collection of computers controlled by networked","page_number":372,"box":{"x":117,"y":785,"width":741,"height":12}},{"id":"c77c6b17-6b80-45da-9531-43ed492abc55","block_type":"box","text":"software coordinating the actions of the computers) obtains control of more than 50% of the processing","page_number":372,"box":{"x":116,"y":800,"width":765,"height":12}},{"id":"4aab6ada-531c-4af5-bfec-9505d2742257","block_type":"box","text":"power dedicated to mining on the Bitcoin network, it may be able to alter the Bitcoin blockchain on","page_number":372,"box":{"x":117,"y":816,"width":725,"height":12}},{"id":"10269851-b03d-4be8-8da2-57304089b109","block_type":"box","text":"which transactions in bitcoin rely by constructing fraudulent blocks or preventing certain transactions","page_number":372,"box":{"x":116,"y":831,"width":749,"height":12}},{"id":"0bbc4da0-b940-41e3-8119-eae3d65cb64d","block_type":"box","text":"from completing in a timely manner, or at all. The malicious actor or botnet could also control, exclude","page_number":372,"box":{"x":116,"y":847,"width":761,"height":12}},{"id":"5ba56e05-7f8b-4541-9bea-df2895028818","block_type":"box","text":"or modify the ordering of transactions.","page_number":372,"box":{"x":116,"y":862,"width":287,"height":12}},{"id":"1418a0dc-4a35-40a3-85fa-06aaff12b64a","block_type":"box","text":"II-33","page_number":372,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b077958c-24fa-4a89-8eae-97dd7aadfb50","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":372,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b7a90e8d-8308-476a-a1e5-b5112a7a26d9","block_type":"box","text":"The Ethereum network is currently vulnerable to several types of attacks, including a:","page_number":373,"box":{"x":116,"y":87,"width":637,"height":12}},{"id":"c0c30f79-59e4-42ab-bd84-786af52c0e4d","block_type":"box","text":"• “>33% attack” where, if a validator or group of validators were to gain control of more than","page_number":373,"box":{"x":159,"y":111,"width":698,"height":12}},{"id":"bf2e6e7f-5925-4787-9494-2a9a60f4459a","block_type":"box","text":"33% of the total staked ether on the Ethereum network, a malicious actor could temporarily","page_number":373,"box":{"x":184,"y":127,"width":680,"height":12}},{"id":"cf37ab0e-81c3-49e5-a52c-7c1fb37c9347","block_type":"box","text":"impede or delay block confirmation or even cause a temporary fork in the blockchain. This is","page_number":373,"box":{"x":184,"y":142,"width":690,"height":12}},{"id":"433547d1-df52-4669-bd47-2b6763aeccd2","block_type":"box","text":"believed to be temporary, as the Ethereum network’s inactivity leak would be expected to","page_number":373,"box":{"x":184,"y":158,"width":666,"height":12}},{"id":"ecd9e711-106f-449a-997c-9a23c018f4eb","block_type":"box","text":"eventually penalize the attacker enough for the chain to finalize again (i.e., the honest majority","page_number":373,"box":{"x":184,"y":173,"width":704,"height":12}},{"id":"48b5fd07-9722-4989-a1db-dc53bd18f4d0","block_type":"box","text":"would be expected to reclaim 2/3rd stake as the attacker’s stake is penalized). However, it is","page_number":373,"box":{"x":183,"y":189,"width":693,"height":12}},{"id":"d2574e64-ea48-4c64-859e-489a2b087484","block_type":"box","text":"not believed that with 33% control, a malicious actor could engage in double-spending or","page_number":373,"box":{"x":184,"y":204,"width":663,"height":12}},{"id":"49d79e95-4b3b-456b-b8b4-5ee4e41bd004","block_type":"box","text":"fraudulent block propagation.","page_number":373,"box":{"x":183,"y":220,"width":222,"height":12}},{"id":"67ce724c-390d-4c66-bcd0-507402b49f9e","block_type":"box","text":"• “>50% attack” where, if a validator or group of validators acting in concert were to gain control","page_number":373,"box":{"x":159,"y":244,"width":726,"height":12}},{"id":"d8e5c1cf-3294-4df8-9354-00c00205062c","block_type":"box","text":"of more than 50% of the total staked ether on the Ethereum network, a malicious actor would","page_number":373,"box":{"x":184,"y":259,"width":695,"height":11}},{"id":"3f25a4bf-de04-4a95-817a-1f42112079db","block_type":"box","text":"be able to gain full control of the Ethereum network and the ability to manipulate future","page_number":373,"box":{"x":184,"y":275,"width":646,"height":12}},{"id":"6f9451c3-3b4e-4312-bbb2-90c65c9454ee","block_type":"box","text":"transactions on the blockchain, including censoring transactions, double-spending and","page_number":373,"box":{"x":183,"y":290,"width":646,"height":12}},{"id":"9bc5144f-a46f-48d5-aa3a-7b1bd15bc8db","block_type":"box","text":"fraudulent block propagation, potentially for an extended period or even permanently. In","page_number":373,"box":{"x":183,"y":306,"width":657,"height":12}},{"id":"0f1ba7f3-5be2-4605-aa58-3ca3cae85cf8","block_type":"box","text":"theory, the minority non-attackers might reach social consensus to reject blocks proposed by","page_number":373,"box":{"x":183,"y":321,"width":694,"height":12}},{"id":"24743526-ce6e-499d-84c9-657e31351f2a","block_type":"box","text":"the malicious majority attacker, reducing the attacker’s ability to engage in malicious activity,","page_number":373,"box":{"x":183,"y":337,"width":690,"height":12}},{"id":"28b6d8b9-fd62-48ba-90d2-30c40a9b8ecd","block_type":"box","text":"but there can be no assurance this would happen or that non-attackers would be able to","page_number":373,"box":{"x":184,"y":352,"width":658,"height":12}},{"id":"a8a6e6a6-9d6b-4263-a8bc-cd0e8cb3bf27","block_type":"box","text":"coordinate effectively.","page_number":373,"box":{"x":184,"y":368,"width":166,"height":12}},{"id":"85fd8b01-b43e-48eb-b4bc-75e06fa5034d","block_type":"box","text":"• “>66% attack” where, if a validator or group of validators acting in concert were to gain control","page_number":373,"box":{"x":159,"y":392,"width":726,"height":12}},{"id":"fc364bf7-f7dc-4ace-8df9-0a730c2a7065","block_type":"box","text":"of more than 66% of the total staked ether on the Ethereum network, a malicious actor could","page_number":373,"box":{"x":184,"y":407,"width":691,"height":12}},{"id":"175a3670-ce7b-46e8-ab1f-6dd466f9808b","block_type":"box","text":"permanently and irreversibly manipulate the blockchain, including censorship, double","page_number":373,"box":{"x":184,"y":423,"width":636,"height":12}},{"id":"9fc43f84-feb6-4106-81c5-409bc62019d3","block_type":"box","text":"spending and fraudulent block propagation. The attacker could finalize their preferred chain","page_number":373,"box":{"x":184,"y":438,"width":682,"height":12}},{"id":"f60a79be-012a-47d0-82df-71861a85d992","block_type":"box","text":"without any consideration for the votes of other stakers and could also revert finalized blocks.","page_number":373,"box":{"x":183,"y":454,"width":697,"height":12}},{"id":"af6af96a-c175-485d-bf9d-ee4dd0846fae","block_type":"box","text":"The largest bitcoin and ether wallets are believed to hold, in aggregate, a significant percentage of the","page_number":373,"box":{"x":116,"y":487,"width":762,"height":12}},{"id":"15a15d5d-b339-4eb0-9030-280637c1d1ed","block_type":"box","text":"bitcoins and ether in circulation. Moreover, it is possible that other persons or entities control multiple","page_number":373,"box":{"x":117,"y":502,"width":752,"height":12}},{"id":"21e57a33-7969-42df-afe0-9409e42ceb01","block_type":"box","text":"wallets that collectively hold a significant number of bitcoins or ether, even if they individually only hold","page_number":373,"box":{"x":116,"y":518,"width":764,"height":12}},{"id":"6cbc491e-fe16-452c-8af1-74bcac6bef3f","block_type":"box","text":"a small amount, and it is possible that some of these wallets are controlled by the same person or","page_number":373,"box":{"x":116,"y":533,"width":731,"height":12}},{"id":"070b3ef4-939e-429c-8566-f5a7ba6481ef","block_type":"box","text":"entity. As a result of this concentration of ownership, large sales or distributions by such holders could","page_number":373,"box":{"x":116,"y":549,"width":761,"height":12}},{"id":"8fa382b9-910a-449b-a833-4592a5a8f5eb","block_type":"box","text":"have an adverse effect on the market price of bitcoin or ether.","page_number":373,"box":{"x":117,"y":564,"width":462,"height":12}},{"id":"a0674c76-bd76-443e-8239-37687c5cc23b","block_type":"box","text":"Risks Related to Digital Assets as a Means of Payment.","page_number":373,"box":{"x":116,"y":597,"width":420,"height":12}},{"id":"95e717fe-5ac3-489f-ae20-434b41bbac31","block_type":"box","text":"Digital assets such as bitcoin and ether have","page_number":373,"box":{"x":537,"y":597,"width":337,"height":12}},{"id":"088f8bfa-1ba6-4323-8ea5-e9dfed537e51","block_type":"box","text":"only recently become selectively accepted as a means of payment by retail and commercial outlets,","page_number":373,"box":{"x":116,"y":612,"width":744,"height":12}},{"id":"9816458f-8623-4323-843c-7f170b6e11d7","block_type":"box","text":"and use of bitcoins or ether by consumers to pay such retail and commercial outlets remains limited.","page_number":373,"box":{"x":116,"y":628,"width":749,"height":12}},{"id":"b3fd586f-ab37-4904-9000-3edaa37d9745","block_type":"box","text":"Banks and other established financial institutions may refuse to process funds for bitcoin or ether","page_number":373,"box":{"x":117,"y":643,"width":723,"height":12}},{"id":"f371d50a-32ff-4bce-aeac-37d3666b4b6f","block_type":"box","text":"transactions; process wire transfers to or from digital asset platforms, bitcoin- or ether-related","page_number":373,"box":{"x":116,"y":659,"width":697,"height":12}},{"id":"a8b96852-f2f4-4f1e-b4dc-d6ff8a0af5cb","block_type":"box","text":"companies or service providers; or maintain accounts for persons or entities transacting in bitcoin or","page_number":373,"box":{"x":116,"y":674,"width":742,"height":12}},{"id":"03e47b33-eda0-4859-b5b9-7ced715006da","block_type":"box","text":"ether. As a result, the prices of bitcoin or ether may be influenced to a significant extent by speculators,","page_number":373,"box":{"x":116,"y":690,"width":765,"height":12}},{"id":"f55ca2c4-80c7-47aa-a5fd-1400a3cf8fb7","block_type":"box","text":"and thus contributing to price volatility that makes retailers less likely to accept such digital assets as a","page_number":373,"box":{"x":116,"y":705,"width":760,"height":12}},{"id":"c832ef0f-adb1-4b2e-9edf-1b4d832c2feb","block_type":"box","text":"form of payment in the future.","page_number":373,"box":{"x":116,"y":721,"width":218,"height":12}},{"id":"35ae855a-85c8-42cb-a865-820796f91800","block_type":"box","text":"In addition, as the speed of digital asset transactions and the number of transactions that can be","page_number":373,"box":{"x":117,"y":753,"width":714,"height":13}},{"id":"51efa949-5e29-4253-8c47-926d711230d0","block_type":"box","text":"processed lags behind growth in the use of digital asset networks, average fees and settlement times","page_number":373,"box":{"x":117,"y":769,"width":750,"height":12}},{"id":"f3a0cfd5-801b-460a-b217-0f85dc5a9174","block_type":"box","text":"may increase considerably. For example, the Bitcoin network and Ethereum network have been, at","page_number":373,"box":{"x":117,"y":785,"width":733,"height":12}},{"id":"46165975-ef87-4ccd-b3a0-0bae23027349","block_type":"box","text":"times, at capacity, which has led to increased transaction fees. Increased fees and decreased","page_number":373,"box":{"x":116,"y":800,"width":696,"height":12}},{"id":"39ed4f57-839e-443a-ab5b-155b9f6bb622","block_type":"box","text":"settlement speeds could preclude certain uses for bitcoin or ether (e.g., micropayments), and could","page_number":373,"box":{"x":116,"y":815,"width":735,"height":13}},{"id":"1057b5fb-8c57-4493-8a16-e9e8b67368af","block_type":"box","text":"reduce demand for, and the price of, bitcoin or ether. Bitcoin or Ethereum transactions are typically not","page_number":373,"box":{"x":117,"y":831,"width":765,"height":12}},{"id":"ba6c40f7-b70d-42ff-acef-7f2dcd09bb80","block_type":"box","text":"reversible without the consent and active participation of the recipient of the transaction. Once a","page_number":373,"box":{"x":117,"y":846,"width":716,"height":12}},{"id":"1e6551b9-cc88-4e37-9c17-1ef831c7bbfc","block_type":"box","text":"transaction has been verified and recorded in a block that is added to the Bitcoin or Ethereum","page_number":373,"box":{"x":116,"y":862,"width":700,"height":10}},{"id":"99a15b4d-80f2-491a-af89-1f2e80049aa0","block_type":"box","text":"blockchain, an incorrect transfer or theft of bitcoin generally will not be reversible and a holder of","page_number":373,"box":{"x":117,"y":877,"width":718,"height":13}},{"id":"34cba901-8b75-42a2-a761-918929545b3b","block_type":"box","text":"II-34","page_number":373,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"12cd788b-6950-4b05-b41a-10f72836fe9a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":373,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"801c4816-0f0a-417a-9ccf-77f2690ec43d","block_type":"box","text":"bitcoin or ether, such as an ETP (as defined below), may not be capable of seeking compensation for","page_number":374,"box":{"x":117,"y":87,"width":757,"height":12}},{"id":"e6d24888-ced8-4777-911b-db896f00a13c","block_type":"box","text":"any such transfer or theft.","page_number":374,"box":{"x":116,"y":102,"width":195,"height":13}},{"id":"80be4ced-17ca-4816-b8bf-f30bf7e14093","block_type":"box","text":"Risks Related to the Digital Asset Markets.","page_number":374,"box":{"x":116,"y":134,"width":322,"height":12}},{"id":"d50123d2-b541-4be4-a528-dc93a7418abd","block_type":"box","text":"Bitcoin and ether were among the first cryptographic digital","page_number":374,"box":{"x":440,"y":134,"width":441,"height":12}},{"id":"5929c3c6-b3af-4417-b1a1-3b32bc2dff50","block_type":"box","text":"assets to gain global adoption and critical mass. In general, digital asset networks, including the Bitcoin","page_number":374,"box":{"x":116,"y":149,"width":771,"height":12}},{"id":"42fad5c8-ff25-4809-883c-e33e4448c104","block_type":"box","text":"network, the Ethereum network and other cryptographic and algorithmic protocols governing the","page_number":374,"box":{"x":117,"y":165,"width":716,"height":12}},{"id":"8fb7b119-a327-4f3d-9a83-866eb65f95e7","block_type":"box","text":"issuance of digital assets represent a new and rapidly evolving industry that is subject to a variety of","page_number":374,"box":{"x":117,"y":180,"width":746,"height":12}},{"id":"bac7fcf4-6338-49c6-9f80-58c21f6cd823","block_type":"box","text":"factors that are difficult to evaluate. In addition, many consortiums and financial institutions are also","page_number":374,"box":{"x":116,"y":196,"width":742,"height":12}},{"id":"9db01546-33cc-40d7-bdc8-4fed16f455c5","block_type":"box","text":"researching and investing resources into private or permissioned smart contract platforms rather than","page_number":374,"box":{"x":117,"y":211,"width":757,"height":12}},{"id":"fb4f29bc-4acd-433a-a902-7075b08c31da","block_type":"box","text":"open platforms like the Bitcoin network or the Ethereum network. Competition from the emergence or","page_number":374,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"8c47d319-08c1-44d7-a0b0-9b4f7ee333d6","block_type":"box","text":"growth of alternative digital assets and smart contracts platforms, such as Solana, Avalanche,","page_number":374,"box":{"x":116,"y":242,"width":702,"height":12}},{"id":"2611ca5a-a7bd-48d3-a9b4-3a553ff13320","block_type":"box","text":"Polkadot, or Cardano, could have a negative impact on","page_number":374,"box":{"x":117,"y":258,"width":413,"height":12}},{"id":"a0acbc7e-a649-4516-8b33-80ad3a7d66f8","block_type":"box","text":"the demand for, and price of, bitcoin or ether","page_number":374,"box":{"x":530,"y":258,"width":336,"height":11}},{"id":"0cefbb07-08e1-4cc8-a8c9-dccae21326f0","block_type":"box","text":"and thereby adversely affect the value of the bitcoin- or ether-related investments.","page_number":374,"box":{"x":116,"y":273,"width":614,"height":12}},{"id":"11e6c09f-dc08-4297-8709-f9eccba0964a","block_type":"box","text":"Moreover, in the past, bugs, defects and flaws in the source code for digital assets have been exposed","page_number":374,"box":{"x":117,"y":304,"width":767,"height":12}},{"id":"28410a96-62a8-4c7d-8282-e71ce4341a31","block_type":"box","text":"and exploited, including flaws that disabled some functionality for users, exposed users’ personal","page_number":374,"box":{"x":116,"y":320,"width":725,"height":12}},{"id":"e06b43d4-14cf-4242-ad41-b165dfb793fe","block_type":"box","text":"information and/or resulted in the theft of users’ digital assets. The cryptography underlying digital","page_number":374,"box":{"x":117,"y":335,"width":729,"height":12}},{"id":"17807071-3397-45db-8f8d-6f86d33ae7e9","block_type":"box","text":"asset networks or digital assets could prove to be flawed or ineffective, or developments in","page_number":374,"box":{"x":116,"y":351,"width":677,"height":12}},{"id":"03a8953d-968c-4fac-80ab-1115b5149997","block_type":"box","text":"mathematics and/or technology, including advances in digital computing, algebraic geometry and","page_number":374,"box":{"x":117,"y":366,"width":724,"height":12}},{"id":"88efd8be-b328-4287-9897-6ef5d2cfc26f","block_type":"box","text":"quantum computing, could result in such cryptography becoming ineffective. In any of these","page_number":374,"box":{"x":116,"y":382,"width":686,"height":12}},{"id":"58652aee-0756-47c8-8655-9bfdb16dd4ec","block_type":"box","text":"circumstances, a malicious actor may be able to compromise the security of digital asset networks or","page_number":374,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"455a047c-c9b4-422f-b0b1-d9ce05e8b8fb","block_type":"box","text":"take a holder’s digital assets. Moreover, normal operations and functionality of digital asset networks","page_number":374,"box":{"x":116,"y":413,"width":751,"height":12}},{"id":"3928741b-3c81-43ec-a411-06007f6b31fd","block_type":"box","text":"may be negatively affected such that it is no longer attractive to users or other stakeholders, thereby","page_number":374,"box":{"x":117,"y":428,"width":748,"height":12}},{"id":"e86298ea-cbd1-4d73-a98a-c14703bf9ce6","block_type":"box","text":"dampening demand for such digital assets.","page_number":374,"box":{"x":116,"y":444,"width":324,"height":12}},{"id":"bbda477b-8b20-4f74-977c-64817081f4e0","block_type":"box","text":"Digital Asset ETPs.","page_number":374,"box":{"x":116,"y":475,"width":148,"height":12}},{"id":"576cd660-a2c9-47ba-a7d6-7bccc7aed81d","block_type":"box","text":"The Fund may acquire shares in exchange-traded products (“ETPs”) that seek to","page_number":374,"box":{"x":265,"y":475,"width":606,"height":12}},{"id":"947b325f-ce08-4dee-a1d4-cc6aaf8cc28a","block_type":"box","text":"reflect generally the performance of the price of bitcoin or ether by directly holding bitcoin (“Bitcoin","page_number":374,"box":{"x":117,"y":490,"width":731,"height":12}},{"id":"b6b224b3-1a85-41b8-b2c4-b47c6420ce2c","block_type":"box","text":"ETPs”) or ether (“Ether ETPs”), including shares of a Bitcoin ETP or Ether ETP sponsored by an","page_number":374,"box":{"x":117,"y":506,"width":719,"height":12}},{"id":"79916a82-f4d8-47d2-9366-1ed703d2c511","block_type":"box","text":"affiliate of BlackRock. The Fund will only invest in","page_number":374,"box":{"x":116,"y":521,"width":372,"height":12}},{"id":"594a1727-4776-42b1-96e9-b8e546b3b283","block_type":"box","text":"Bitcoin ETPs or Ether ETPs that are listed and","page_number":374,"box":{"x":489,"y":521,"width":349,"height":10}},{"id":"d49ec404-55e4-46de-848e-d58607d9d098","block_type":"box","text":"traded on national securities exchanges. A Bitcoin ETP or an Ether ETP is not an investment company","page_number":374,"box":{"x":116,"y":537,"width":767,"height":12}},{"id":"ed66de28-8a5c-472f-ba79-1884bbf827c4","block_type":"box","text":"registered under the Investment Company Act of 1940, as amended, and therefore does not have the","page_number":374,"box":{"x":117,"y":552,"width":758,"height":12}},{"id":"6c641120-706d-40a9-bf81-35ce5893027d","block_type":"box","text":"same investor protections as a registered investment company.","page_number":374,"box":{"x":116,"y":568,"width":476,"height":12}},{"id":"0334f782-1ba9-4a00-9ba0-99b3b402f334","block_type":"box","text":"Futures on Digital Assets.","page_number":374,"box":{"x":116,"y":599,"width":190,"height":12}},{"id":"ebc2cb98-dc66-46db-b39e-78874d1fb22a","block_type":"box","text":"The Fund may invest in futures on Bitcoin and futures on Ethereum. See","page_number":374,"box":{"x":307,"y":599,"width":549,"height":12}},{"id":"a9f75110-03ab-4be5-8ade-b8e50e68a625","block_type":"box","text":"“Derivatives—General,” “Derivatives—Regulation of Derivatives” and “Derivatives—Risk Factors in","page_number":374,"box":{"x":116,"y":614,"width":738,"height":12}},{"id":"ab11be51-cf26-4a15-b579-132c76997139","block_type":"box","text":"Derivatives” below.","page_number":374,"box":{"x":117,"y":630,"width":146,"height":9}},{"id":"9a032c40-e90e-4aeb-b501-6588e2053fe9","block_type":"box","text":"Distressed Securities.","page_number":374,"box":{"x":116,"y":661,"width":174,"height":9}},{"id":"71c34240-271b-4693-81d9-c71a9fe9199b","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary","page_number":374,"box":{"x":296,"y":661,"width":565,"height":12}},{"id":"8a31d265-af7e-487b-a84d-ed40fc5d556f","block_type":"box","text":"market, that are the subject of bankruptcy proceedings or otherwise in default or in risk of being in","page_number":374,"box":{"x":117,"y":676,"width":724,"height":12}},{"id":"4ebe1103-7bb4-491f-9d43-115ffe3d7bba","block_type":"box","text":"default as to the repayment of principal and/or interest at the time of acquisition by the Fund or that are","page_number":374,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"533d6556-6791-44ae-b55b-e164068e84af","block_type":"box","text":"rated in the lower rating categories by one or more nationally recognized statistical rating organizations","page_number":374,"box":{"x":117,"y":707,"width":762,"height":12}},{"id":"d35f753c-2ddb-4248-8828-e520cb8e3fde","block_type":"box","text":"(for example, Ca or lower by Moody’s and CC or lower by S&P or Fitch) or, if unrated, are in the","page_number":374,"box":{"x":117,"y":723,"width":709,"height":12}},{"id":"38b3ccfd-6b67-4a5d-acd1-4098bfd99a03","block_type":"box","text":"judgment of the Manager of equivalent quality (“Distressed Securities”). Investment in Distressed","page_number":374,"box":{"x":115,"y":738,"width":719,"height":12}},{"id":"99f91fe3-251a-469c-bb24-f0f7e2c69d29","block_type":"box","text":"Securities is speculative and involves significant risks.","page_number":374,"box":{"x":116,"y":754,"width":399,"height":12}},{"id":"349e79e6-1d41-44b3-88e1-b1395261870a","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely","page_number":374,"box":{"x":116,"y":785,"width":740,"height":12}},{"id":"f975c88a-4af6-4145-af50-287a805da432","block_type":"box","text":"that the issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan","page_number":374,"box":{"x":116,"y":800,"width":754,"height":12}},{"id":"b7bb0f64-60ce-43ad-8b99-32579eef80f7","block_type":"box","text":"of reorganization pursuant to which the Fund will receive new securities in return for the Distressed","page_number":374,"box":{"x":116,"y":816,"width":733,"height":12}},{"id":"e23ffb51-87c0-4dbf-998d-d360c0f7a29e","block_type":"box","text":"Securities. However, there can be no assurance that such an exchange offer will be made or that such","page_number":374,"box":{"x":116,"y":831,"width":766,"height":12}},{"id":"c8fcd72e-c835-47bc-afcf-9615b73b0ea7","block_type":"box","text":"a plan of reorganization will be adopted. In addition, a significant period of time may pass between the","page_number":374,"box":{"x":116,"y":847,"width":762,"height":12}},{"id":"7b1cc964-29ba-4b34-b240-114d40fcf34b","block_type":"box","text":"time at which a Fund makes its investment in Distressed Securities and the time that any such","page_number":374,"box":{"x":116,"y":862,"width":704,"height":12}},{"id":"e8fec7d5-ec02-412f-b2d0-d72664a02225","block_type":"box","text":"exchange offer or plan of reorganization is completed. During this period, it is unlikely that a Fund will","page_number":374,"box":{"x":116,"y":878,"width":756,"height":12}},{"id":"46fb484a-bf13-4938-87ed-e5603ae8006d","block_type":"box","text":"II-35","page_number":374,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6b252fc5-9440-4ce1-a650-c2bc9a435d44","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":374,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c07b6512-e150-4a1a-aa05-c07ad8ad1da3","block_type":"box","text":"receive any interest payments on the Distressed Securities, the Fund will be subject to significant","page_number":375,"box":{"x":117,"y":87,"width":725,"height":12}},{"id":"0ce504dd-3976-49e5-beda-01f0f771cb70","block_type":"box","text":"uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":375,"box":{"x":117,"y":102,"width":764,"height":13}},{"id":"8943812e-b818-486e-b592-381e51ade9a3","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment.","page_number":375,"box":{"x":117,"y":118,"width":741,"height":12}},{"id":"41d93eba-71b9-4f36-8148-8f3e17d7d528","block_type":"box","text":"Therefore, to the extent the Fund seeks capital appreciation through investment in distressed","page_number":375,"box":{"x":116,"y":134,"width":696,"height":12}},{"id":"1db96ffc-42c7-47d8-8dc2-dfbf8386c0dd","block_type":"box","text":"securities, the Fund’s ability to achieve current income for its shareholders may be diminished. The","page_number":375,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"aac62157-72fc-42d5-92a4-db5debbc66d5","block_type":"box","text":"Fund also will be subject to significant uncertainty as to when and in what manner and for what value","page_number":375,"box":{"x":117,"y":165,"width":753,"height":12}},{"id":"317b235d-ac90-4a6f-b0d5-bc5fb3984e06","block_type":"box","text":"the obligations evidenced by the distressed securities will eventually be satisfied (","page_number":375,"box":{"x":116,"y":180,"width":605,"height":12}},{"id":"e95cbba7-93ea-4993-9d55-79dc05a15a60","block_type":"box","text":"e.g.","page_number":375,"box":{"x":723,"y":183,"width":25,"height":9}},{"id":"0be9a544-ca7e-4008-8ce4-aede04b1c587","block_type":"box","text":", through a","page_number":375,"box":{"x":751,"y":180,"width":84,"height":12}},{"id":"bf2d6db7-8572-4367-acff-4e6042cc7f26","block_type":"box","text":"liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the distressed","page_number":375,"box":{"x":117,"y":196,"width":756,"height":12}},{"id":"0740797d-e76d-49a0-9f01-ae0adff0ccf0","block_type":"box","text":"securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":375,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"14ce7cd6-4cd6-4c22-9d89-edba8ee1e4a6","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there","page_number":375,"box":{"x":117,"y":227,"width":754,"height":12}},{"id":"f1a3f5bc-61c8-4896-95af-88907b503e88","block_type":"box","text":"can be no assurance that the securities or other assets received by a Fund in connection with such","page_number":375,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"0945d686-8ed7-4d48-9eed-de396da81556","block_type":"box","text":"exchange offer or plan of reorganization will not have a lower value or income potential than may have","page_number":375,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"69a94b68-3476-4476-a688-c9ca55d90565","block_type":"box","text":"been anticipated when the investment was made or no value. Moreover, any securities received by a","page_number":375,"box":{"x":117,"y":273,"width":753,"height":12}},{"id":"079f0246-4447-4185-ae6e-e9b957ab8db9","block_type":"box","text":"Fund upon completion of an exchange offer or plan of reorganization may be restricted as to resale.","page_number":375,"box":{"x":117,"y":289,"width":745,"height":12}},{"id":"28be6766-b378-432a-b87e-dfdecb060724","block_type":"box","text":"Similarly, if a Fund participates in negotiations with respect to any exchange offer or plan of","page_number":375,"box":{"x":116,"y":304,"width":683,"height":12}},{"id":"3220b627-0f53-4f8a-937b-f39eb61a785f","block_type":"box","text":"reorganization with respect to an issuer of Distressed Securities, the Fund may be restricted from","page_number":375,"box":{"x":117,"y":320,"width":726,"height":12}},{"id":"f0e3ee1b-b824-4fc8-81b1-559ffbff8eed","block_type":"box","text":"disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":375,"box":{"x":116,"y":335,"width":734,"height":12}},{"id":"6b09423b-b6b2-4205-9f1f-516978642e08","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by","page_number":375,"box":{"x":117,"y":351,"width":752,"height":12}},{"id":"069aad7a-1361-43db-8adb-686ad8099db9","block_type":"box","text":"an investor. The Fund, however, will not make investments for the purpose of exercising day-to-day","page_number":375,"box":{"x":116,"y":366,"width":744,"height":12}},{"id":"6ee2b993-9c3e-4043-a197-4028ab8679dc","block_type":"box","text":"management of any issuer’s affairs.","page_number":375,"box":{"x":117,"y":382,"width":269,"height":12}},{"id":"d9d23935-2a1d-4e89-94b8-49b7c7336f5b","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration.","page_number":375,"box":{"x":116,"y":413,"width":476,"height":12}},{"id":"46c7b420-3b33-4287-ac18-51e509933bef","block_type":"box","text":"Although a Fund does not seek to","page_number":375,"box":{"x":593,"y":413,"width":261,"height":12}},{"id":"9a09725e-4b91-4701-b0a2-89571bc90b9a","block_type":"box","text":"implement a specific sustainability objective, strategy or process unless disclosed in its Prospectus,","page_number":375,"box":{"x":117,"y":428,"width":741,"height":12}},{"id":"fa73135b-9dfb-4a16-b9b4-6973d5d89838","block_type":"box","text":"Fund management will consider ESG factors as part of the investment process for the Fund. Fund","page_number":375,"box":{"x":117,"y":444,"width":733,"height":12}},{"id":"c42bb994-3fca-4d78-b22a-d513764ff64a","block_type":"box","text":"management views ESG integration as the practice of incorporating financially material ESG data or","page_number":375,"box":{"x":117,"y":459,"width":747,"height":12}},{"id":"007a963a-b347-439c-bac4-5e0926c88516","block_type":"box","text":"information into investment processes with the objective of enhancing risk-adjusted returns. These","page_number":375,"box":{"x":117,"y":475,"width":734,"height":12}},{"id":"a61b0c84-33a7-4cf0-8416-4a70c2f86b8c","block_type":"box","text":"ESG considerations will vary depending on a Fund’s particular investment strategies and may include","page_number":375,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"44236dd9-19ef-4b44-b81a-d4535dc74e67","block_type":"box","text":"consideration of third-party research as well as consideration of proprietary BlackRock research across","page_number":375,"box":{"x":116,"y":506,"width":770,"height":12}},{"id":"f3c2f6aa-d913-42a9-bd82-4a18bc8721c1","block_type":"box","text":"the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":375,"box":{"x":116,"y":521,"width":725,"height":12}},{"id":"1b6b43f8-0e06-465e-a8f0-c0cb3e8489d2","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be","page_number":375,"box":{"x":117,"y":537,"width":738,"height":12}},{"id":"e175f5f5-3953-4c59-9f34-f11e2c29b1e9","block_type":"box","text":"relevant with respect to all issuers that are eligible for investment.","page_number":375,"box":{"x":117,"y":552,"width":490,"height":12}},{"id":"34ab3fa9-113b-45d4-b4c5-d4cc16551f3d","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While","page_number":375,"box":{"x":117,"y":583,"width":769,"height":12}},{"id":"19a5ab93-a9c8-472e-a892-8e9e88effa9a","block_type":"box","text":"Fund management views ESG considerations as having the potential to contribute to a Fund’s long","page_number":375,"box":{"x":117,"y":599,"width":740,"height":12}},{"id":"94065063-df70-4361-bd3e-b2acc58af6f6","block_type":"box","text":"term performance, there is no guarantee that such results will be achieved.","page_number":375,"box":{"x":116,"y":614,"width":561,"height":12}},{"id":"646db1b9-0494-480a-afc9-748605385b9d","block_type":"box","text":"Equity Securities.","page_number":375,"box":{"x":116,"y":645,"width":140,"height":12}},{"id":"ca91ab71-b7ba-4329-aa66-9ebaf070a347","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for","page_number":375,"box":{"x":257,"y":645,"width":629,"height":12}},{"id":"a99a2ce3-9076-4d09-bfae-d5b34e0533c2","block_type":"box","text":"certain Funds, preferred stock (including convertible preferred stock); bonds; stock purchase warrants","page_number":375,"box":{"x":116,"y":661,"width":755,"height":12}},{"id":"9672709d-3f25-4c22-becd-da8804cd6464","block_type":"box","text":"and rights; equity interests in trusts; general and limited partnerships and limited liability companies;","page_number":375,"box":{"x":116,"y":676,"width":739,"height":12}},{"id":"2f94b304-f9f9-4efc-8a55-99aa007bd3f5","block_type":"box","text":"and depositary receipts. Stock markets are volatile. The price of equity securities will fluctuate and can","page_number":375,"box":{"x":116,"y":692,"width":759,"height":12}},{"id":"7204a1a8-9ba2-49b7-902a-51e4652f6f4c","block_type":"box","text":"decline and reduce the value of a portfolio investing in equities. The price of equity securities fluctuates","page_number":375,"box":{"x":116,"y":707,"width":763,"height":12}},{"id":"ab14e182-c3d9-4da4-ba99-3dd7b0576e50","block_type":"box","text":"based on changes in a company’s financial condition and overall market and economic conditions. The","page_number":375,"box":{"x":117,"y":723,"width":762,"height":12}},{"id":"e0e90e87-68d9-4a34-a6b8-9ad25b343313","block_type":"box","text":"value of equity securities purchased by the Fund could decline if the financial condition of the","page_number":375,"box":{"x":116,"y":738,"width":689,"height":12}},{"id":"bd78008b-9a30-4008-9795-c8506bdb56e9","block_type":"box","text":"companies the Fund invests in decline or if overall market and economic conditions deteriorate. They","page_number":375,"box":{"x":116,"y":754,"width":750,"height":12}},{"id":"369445aa-8f46-4846-960d-a6bc9d60bc69","block_type":"box","text":"may also decline due to factors that affect a particular industry or industries, such as labor shortages or","page_number":375,"box":{"x":117,"y":769,"width":766,"height":12}},{"id":"cf14a256-163a-47a0-b5fc-ef97775722f5","block_type":"box","text":"increase in production costs and competitive conditions within an industry. In addition, they may","page_number":375,"box":{"x":117,"y":785,"width":710,"height":12}},{"id":"ae619077-1b52-436b-8766-0427bc5fbfd3","block_type":"box","text":"decline due to general market conditions that are not specifically related to a company or industry,","page_number":375,"box":{"x":116,"y":800,"width":726,"height":12}},{"id":"f223e18f-90d4-4ee0-82ee-044f2ecbaca1","block_type":"box","text":"such as real or perceived adverse economic conditions, changes in the general outlook for corporate","page_number":375,"box":{"x":116,"y":816,"width":748,"height":12}},{"id":"cbc62bf0-e09f-4751-a69b-bdb3d10bc78f","block_type":"box","text":"earnings, changes in interest or currency rates or generally adverse investor sentiment.","page_number":375,"box":{"x":116,"y":831,"width":654,"height":12}},{"id":"051aba42-3a55-4b11-87af-afba4ffa2bf5","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public","page_number":375,"box":{"x":117,"y":862,"width":704,"height":12}},{"id":"9d3451bf-c948-4ff6-b92e-1b1b24bb7fac","block_type":"box","text":"offerings (“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for","page_number":375,"box":{"x":116,"y":878,"width":764,"height":12}},{"id":"e3824c33-2341-4f19-a321-1ac53ede9e4d","block_type":"box","text":"II-36","page_number":375,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f26354f9-505a-444e-97be-3236682b2851","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":375,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2bfe51b7-fe06-4957-bf62-24eb967d97ab","block_type":"box","text":"certain Funds. There is no assurance that any Fund will have continued access to profitable IPOs and","page_number":376,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"0908fc98-6f0c-4ae6-8f24-b22f4a7b69f9","block_type":"box","text":"therefore investors should not rely on these past gains as an indication of future performance. The","page_number":376,"box":{"x":116,"y":102,"width":734,"height":13}},{"id":"e7c28311-c8ff-4720-8e21-243cc8651fde","block_type":"box","text":"investment performance of a Fund during periods when it is unable to invest significantly or at all in","page_number":376,"box":{"x":117,"y":118,"width":738,"height":12}},{"id":"3981d73a-0e94-4ea6-b637-721a53e2912d","block_type":"box","text":"IPOs may be lower than during periods when it is able to do so. In addition, as a Fund increases in","page_number":376,"box":{"x":117,"y":134,"width":736,"height":12}},{"id":"b3ba9abd-fc6e-4e0a-be5e-5ad4f9ec94e2","block_type":"box","text":"size, the impact of IPOs on its performance will generally decrease. Securities issued in IPOs are","page_number":376,"box":{"x":116,"y":149,"width":727,"height":12}},{"id":"20b089f9-493a-4f33-8e43-c7bc4fe36656","block_type":"box","text":"subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":376,"box":{"x":116,"y":165,"width":717,"height":12}},{"id":"64575d0e-4a5f-4d44-b1b7-3ef72cc85ebe","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be","page_number":376,"box":{"x":116,"y":180,"width":713,"height":12}},{"id":"8dd8c766-1b0e-4cfa-aa7a-9180349b2f83","block_type":"box","text":"available for very limited periods. In addition, the prices of securities sold in IPOs may be highly volatile","page_number":376,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"a992079d-30d1-47f7-8dfa-1f94d044e5ee","block_type":"box","text":"or may decline shortly after the initial public offering.","page_number":376,"box":{"x":116,"y":211,"width":392,"height":12}},{"id":"c36ba75f-df83-44b1-bc1c-2aec61b49f3d","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These","page_number":376,"box":{"x":116,"y":242,"width":685,"height":12}},{"id":"675b05f4-a858-4ec3-abae-6f5a2649a398","block_type":"box","text":"organizations will normally have more limited product lines, markets and financial resources and will be","page_number":376,"box":{"x":116,"y":258,"width":769,"height":12}},{"id":"5789439f-9ebb-49f5-8250-2fd20d086928","block_type":"box","text":"dependent upon a more limited management group than larger capitalized companies. In addition, it is","page_number":376,"box":{"x":116,"y":273,"width":764,"height":12}},{"id":"e8bc32a8-4f37-4b3f-af15-ae264e180535","block_type":"box","text":"more difficult to get information on smaller companies, which tend to be less well known, have shorter","page_number":376,"box":{"x":117,"y":289,"width":758,"height":12}},{"id":"366c3c05-8165-45c1-ae23-8587ef397da3","block_type":"box","text":"operating histories, do not have significant ownership by large investors and are followed by relatively","page_number":376,"box":{"x":116,"y":304,"width":758,"height":12}},{"id":"25997b78-84f7-41ca-98bb-d823a22da325","block_type":"box","text":"few securities analysts. The securities of smaller capitalized companies are often traded in the OTC","page_number":376,"box":{"x":116,"y":320,"width":744,"height":12}},{"id":"f951afc1-c8e4-452f-9844-48acb733e3f8","block_type":"box","text":"markets and may have fewer market makers and wider price spreads. This may result in greater price","page_number":376,"box":{"x":117,"y":335,"width":760,"height":12}},{"id":"3ed20274-3568-4844-8b0e-44b0e0c4e05d","block_type":"box","text":"movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":376,"box":{"x":117,"y":351,"width":743,"height":12}},{"id":"334916e4-d23c-4c8c-8e47-12e8423507ff","block_type":"box","text":"more established companies.","page_number":376,"box":{"x":117,"y":366,"width":222,"height":12}},{"id":"ed5fbe26-c04d-4a5a-8931-b4b8d80c68c0","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks","page_number":376,"box":{"x":117,"y":397,"width":693,"height":12}},{"id":"6d29ae9d-15fb-4bb7-b32f-090bd9275c46","block_type":"box","text":"associated with investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds","page_number":376,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"ff547d6d-51d6-415d-8b51-881594355576","block_type":"box","text":"may also invest in shares of private companies, which are subject to the risks of “Illiquid Investments”","page_number":376,"box":{"x":117,"y":428,"width":756,"height":12}},{"id":"0bee29e6-3d0f-438d-9bd9-b2d85c78fd9e","block_type":"box","text":"and “Restricted Securities” described below.","page_number":376,"box":{"x":116,"y":444,"width":334,"height":9}},{"id":"60e3f3ea-791d-4eda-bbb9-f9fc66fef62e","block_type":"box","text":"Real Estate-Related Securities.","page_number":376,"box":{"x":116,"y":475,"width":232,"height":9}},{"id":"62e56b6b-3cf4-415a-9725-c1d4553f0ed6","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may","page_number":376,"box":{"x":349,"y":475,"width":535,"height":12}},{"id":"94dd8a95-b003-434a-b20b-187d7468e40a","block_type":"box","text":"invest in equity securities of issuers that are principally engaged in the real estate industry. Such","page_number":376,"box":{"x":117,"y":490,"width":719,"height":12}},{"id":"54754b3f-860e-4989-84ca-6d8245ee0332","block_type":"box","text":"investments are subject to certain risks associated with the ownership of real estate and with the real","page_number":376,"box":{"x":117,"y":506,"width":753,"height":12}},{"id":"361b0e60-29ee-4f76-8f47-bac134034281","block_type":"box","text":"estate industry in general. These risks include, among others: possible declines in the value of real","page_number":376,"box":{"x":116,"y":521,"width":738,"height":12}},{"id":"ccbb4238-0e0b-4142-ae0d-14a31f505b89","block_type":"box","text":"estate; risks related to general and local economic conditions; possible lack of availability of mortgage","page_number":376,"box":{"x":116,"y":537,"width":760,"height":12}},{"id":"dea4e048-c6da-4f68-b809-ecbf29ef936b","block_type":"box","text":"funds or other limitations on access to capital; overbuilding; risks associated with leverage; market","page_number":376,"box":{"x":116,"y":552,"width":734,"height":12}},{"id":"9484954f-c46f-4019-a232-d284abee16cc","block_type":"box","text":"illiquidity; extended vacancies of properties; increase in competition, property taxes, capital","page_number":376,"box":{"x":117,"y":568,"width":679,"height":12}},{"id":"c480559f-c313-4162-a467-7f3a352a2c86","block_type":"box","text":"expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":376,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"020453b7-2c9b-477f-8729-3547ebe3d933","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental","page_number":376,"box":{"x":117,"y":599,"width":746,"height":12}},{"id":"b9aebc2b-2e58-4817-8988-f1108d127757","block_type":"box","text":"problems; tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured","page_number":376,"box":{"x":117,"y":614,"width":748,"height":12}},{"id":"4d217e68-9229-4a7b-b516-d585817d65ca","block_type":"box","text":"damages from floods, earthquakes or other natural disasters; limitations on and variations in rents,","page_number":376,"box":{"x":116,"y":630,"width":736,"height":12}},{"id":"855cc3a5-2f12-4ca6-8aed-8bc0243f568f","block_type":"box","text":"including decreases in market rates for rents; investment in developments that are not completed or","page_number":376,"box":{"x":117,"y":645,"width":745,"height":12}},{"id":"7bfbf4a0-b75c-4df3-8ff0-a821e07adb9d","block_type":"box","text":"that are subject to delays in completion; and changes in interest rates. To the extent that assets","page_number":376,"box":{"x":116,"y":661,"width":710,"height":12}},{"id":"ddf32eba-40b6-41e4-a299-e08edcd31277","block_type":"box","text":"underlying a Fund’s investments are concentrated geographically, by property type or in certain other","page_number":376,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"0132ef27-79e8-4406-a9a8-fcb7a603aec3","block_type":"box","text":"respects, the Fund may be subject to certain of the foregoing risks to a greater extent. Investments by","page_number":376,"box":{"x":117,"y":692,"width":755,"height":12}},{"id":"2980b082-e220-415e-ad8f-18efc86c8b99","block_type":"box","text":"a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":376,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"e814b035-c673-41ee-af94-b3628918e8c1","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":376,"box":{"x":116,"y":723,"width":393,"height":12}},{"id":"03684d56-4cd7-4460-8ce3-6be8a3f18589","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as","page_number":376,"box":{"x":117,"y":754,"width":763,"height":12}},{"id":"6a5562f1-a632-4807-a054-c5a5a01a458b","block_type":"box","text":"a result of a default on securities the Fund owns, the receipt of such income may adversely affect the","page_number":376,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"02180955-51e3-4a5c-a345-529cc2c8b4d0","block_type":"box","text":"Fund’s ability to retain its tax status as a regulated investment company because of certain income","page_number":376,"box":{"x":117,"y":785,"width":732,"height":12}},{"id":"10aa64bc-a4d6-488b-9152-71c086a8f299","block_type":"box","text":"source requirements applicable to regulated investment companies under the Internal Revenue Code","page_number":376,"box":{"x":116,"y":800,"width":752,"height":12}},{"id":"dee7e81c-bd4f-4c9c-ae79-cfd05b9b1b92","block_type":"box","text":"of 1986, as amended (the “Code”).","page_number":376,"box":{"x":116,"y":816,"width":257,"height":12}},{"id":"3afc9063-0032-4963-979d-3181703301fb","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":376,"box":{"x":117,"y":847,"width":401,"height":12}},{"id":"ae3d662b-7f0b-4116-b758-546c7e5986e1","block_type":"box","text":"Investment in smaller or emerging growth","page_number":376,"box":{"x":520,"y":847,"width":318,"height":12}},{"id":"116b0aa7-72b2-4a77-9fa0-b8a47ff29973","block_type":"box","text":"companies involves greater risk than is customarily associated with investments in more established","page_number":376,"box":{"x":116,"y":862,"width":749,"height":12}},{"id":"79403a40-b717-413e-89da-e92b24e7906f","block_type":"box","text":"companies. The securities of smaller or emerging growth companies may be subject to more abrupt or","page_number":376,"box":{"x":116,"y":878,"width":765,"height":12}},{"id":"f4d5d4ec-a65d-49a8-a797-cb009847143e","block_type":"box","text":"II-37","page_number":376,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"39d766e8-0bca-4820-9270-bcd8a71cced5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":376,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3b6e5ace-707c-4e53-832f-156ba100b6bf","block_type":"box","text":"erratic market movements than larger, more established companies or the market average in general.","page_number":377,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"bcdfb937-7a80-48c3-9693-a007b50d3e40","block_type":"box","text":"These companies may have limited product lines, markets or financial resources, or they may be","page_number":377,"box":{"x":116,"y":102,"width":723,"height":13}},{"id":"0c49aca3-9f8d-46ee-8053-0a30f3e3d581","block_type":"box","text":"dependent on a limited management group.","page_number":377,"box":{"x":116,"y":118,"width":330,"height":12}},{"id":"9766ab97-48df-40c3-b382-2725ac5a9f41","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be","page_number":377,"box":{"x":117,"y":149,"width":727,"height":12}},{"id":"7c46853a-9a2b-4e61-9b1f-6c984cefe1fb","block_type":"box","text":"considered speculative. Full development of these companies and trends frequently takes time.","page_number":377,"box":{"x":116,"y":165,"width":713,"height":12}},{"id":"4221bd1c-842f-4ce7-8966-ec469a284df2","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional","page_number":377,"box":{"x":116,"y":196,"width":762,"height":12}},{"id":"d86bbd04-f715-4967-bd5a-c9c2a4bafcab","block_type":"box","text":"securities exchange and may not be traded every day or in the volume typical of trading on a national","page_number":377,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"dc2b6d87-2db4-43c7-9d64-f62e4fac167e","block_type":"box","text":"securities exchange. As a result, the disposition by a Fund of portfolio securities to meet redemptions","page_number":377,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"08ee6019-486b-45a9-901e-e7ba56ac0566","block_type":"box","text":"or otherwise may require the Fund to make many small sales over a lengthy period of time, or to sell","page_number":377,"box":{"x":116,"y":242,"width":749,"height":12}},{"id":"939006b8-86c7-4c01-b8f0-709ddc8b55f5","block_type":"box","text":"these securities at a discount from market prices or during periods when, in Fund management’s","page_number":377,"box":{"x":116,"y":258,"width":722,"height":12}},{"id":"479b03fa-3fef-4d1f-b7dc-02b39e685aba","block_type":"box","text":"judgment, such disposition is not desirable.","page_number":377,"box":{"x":115,"y":273,"width":326,"height":12}},{"id":"63c8bed9-da38-4154-a717-641f0507da08","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee","page_number":377,"box":{"x":116,"y":304,"width":714,"height":12}},{"id":"4a9f4bdb-8462-47ff-a889-208abfcde09c","block_type":"box","text":"successful investment results. Careful initial selection is particularly important in this area as many new","page_number":377,"box":{"x":116,"y":320,"width":770,"height":12}},{"id":"50dead41-b79b-43de-a151-240ba2bf87cd","block_type":"box","text":"enterprises have promise but lack certain of the fundamental factors necessary to prosper. Investing in","page_number":377,"box":{"x":116,"y":335,"width":767,"height":12}},{"id":"128a15a4-1cd7-40a7-bc15-c3b275b73d8d","block_type":"box","text":"small cap and emerging growth companies requires specialized research and analysis.","page_number":377,"box":{"x":116,"y":351,"width":651,"height":12}},{"id":"71392444-a442-4236-9e3d-5246b3fbc473","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into","page_number":377,"box":{"x":117,"y":382,"width":753,"height":12}},{"id":"24f84fc1-fa10-403a-bacb-a583d07e8871","block_type":"box","text":"significant business enterprises. A Fund may invest in securities of small issuers in the relatively early","page_number":377,"box":{"x":116,"y":397,"width":759,"height":12}},{"id":"fa7490a1-d35e-4437-b46f-50a9afaf6b95","block_type":"box","text":"stages of business development that have a new technology, a unique or proprietary product or","page_number":377,"box":{"x":116,"y":413,"width":714,"height":12}},{"id":"990d7ec7-0e64-4f04-bd61-82d58144b5bb","block_type":"box","text":"service, or a favorable market position.","page_number":377,"box":{"x":116,"y":428,"width":294,"height":12}},{"id":"3ae13f53-954b-40bf-b1e7-23f346aba9cd","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":377,"box":{"x":117,"y":459,"width":757,"height":12}},{"id":"202aa6f3-d42a-4f24-85e3-9eb80fae3c97","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying","page_number":377,"box":{"x":116,"y":475,"width":763,"height":12}},{"id":"fcec49d9-8115-4b1e-b52d-99bbdf06c337","block_type":"box","text":"stages of their business development. The market valuation of small cap issuers tends to fluctuate","page_number":377,"box":{"x":116,"y":490,"width":734,"height":12}},{"id":"b39bfb04-27eb-4b8b-8fba-4c9262960d57","block_type":"box","text":"during economic or market cycles.","page_number":377,"box":{"x":116,"y":506,"width":260,"height":12}},{"id":"1708a5ba-1839-48be-b500-470151669a14","block_type":"box","text":"Tracking Stocks","page_number":377,"box":{"x":118,"y":537,"width":117,"height":12}},{"id":"53521dd9-0887-4d84-9dc1-7addf4008e07","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a","page_number":377,"box":{"x":237,"y":537,"width":604,"height":12}},{"id":"85524c8e-2312-4be8-9352-5d43f10955b2","block_type":"box","text":"specific business unit or operating division within a larger company and is designed to “track” the","page_number":377,"box":{"x":116,"y":552,"width":723,"height":12}},{"id":"bcf58c5b-22c2-4e5c-8b4e-9de6f53f7dab","block_type":"box","text":"performance of such business unit or division. The tracking stock may pay dividends to shareholders","page_number":377,"box":{"x":117,"y":568,"width":751,"height":12}},{"id":"d7a51bc3-db2c-450a-a62a-0694d1970f75","block_type":"box","text":"independent of the parent company. The parent company, rather than the business unit or division,","page_number":377,"box":{"x":117,"y":583,"width":739,"height":12}},{"id":"1028a066-14d2-432c-83bd-30a07f3493eb","block_type":"box","text":"generally is the issuer of tracking stock. However, holders of the tracking stock may not have the same","page_number":377,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"610c0d8d-4444-4f4a-9052-eac86b42eea1","block_type":"box","text":"rights as holders of the company’s common stock.","page_number":377,"box":{"x":117,"y":614,"width":377,"height":12}},{"id":"c1b7e04d-2f80-4a82-9b47-e37c76a114d4","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":377,"box":{"x":116,"y":645,"width":271,"height":12}},{"id":"ef9116a0-5710-46d5-8c58-ddca60fcadaf","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes","page_number":377,"box":{"x":389,"y":645,"width":464,"height":12}},{"id":"0bc1a37c-c41a-4517-9555-c7032a3184a1","block_type":"box","text":"representing debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and","page_number":377,"box":{"x":117,"y":661,"width":765,"height":12}},{"id":"4f81d317-8e3d-4b97-bdd3-a198aca0e588","block_type":"box","text":"ETFs. An ETN’s returns are based on the performance of one or more underlying assets, reference","page_number":377,"box":{"x":117,"y":676,"width":737,"height":12}},{"id":"1b8a3e78-6a3b-46d2-a1f1-153bb49dafb2","block_type":"box","text":"rates or indexes, minus fees and expenses. Similar to ETFs, ETNs are listed on an exchange and","page_number":377,"box":{"x":117,"y":692,"width":724,"height":12}},{"id":"d33894cc-0603-4aa2-a9c1-1484e02379b7","block_type":"box","text":"traded in the secondary market. However, unlike an ETF, an ETN can be held until the ETN’s maturity,","page_number":377,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"2169ace1-bca4-48ab-945f-6eea437bdd4a","block_type":"box","text":"at which time the issuer will pay a return linked to the performance of the specific asset, index or rate","page_number":377,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"28a6382c-8dcb-4e6e-a95f-33a6c523372f","block_type":"box","text":"(“reference instrument”) to which the ETN is linked minus certain fees. Unlike regular bonds, ETNs do","page_number":377,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"fcd38a27-3774-4a0f-946c-f29a58e7f0bc","block_type":"box","text":"not make periodic interest payments, and principal is not protected.","page_number":377,"box":{"x":117,"y":754,"width":497,"height":12}},{"id":"360366d9-c9fc-4ea3-a6a8-2cf14102119f","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and","page_number":377,"box":{"x":116,"y":785,"width":743,"height":12}},{"id":"51c91cd0-e7db-4241-8590-32148676ec40","block_type":"box","text":"demand for the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable","page_number":377,"box":{"x":116,"y":800,"width":731,"height":12}},{"id":"e6ff82d6-e56f-4031-9cd6-987222fe9ad4","block_type":"box","text":"interest rates, the performance of the reference instrument, changes in the issuer’s credit rating and","page_number":377,"box":{"x":117,"y":816,"width":739,"height":12}},{"id":"3f692319-a5f7-4bdf-a314-d7c50d40ebe4","block_type":"box","text":"economic, legal, political or geographic events that affect the reference instrument. ETNs are subject to","page_number":377,"box":{"x":116,"y":831,"width":772,"height":12}},{"id":"2eab9dab-dce5-42b7-b54c-cd358e11cf63","block_type":"box","text":"credit risk and the value of the ETN may drop due to a downgrade in an issuer’s credit rating, despite","page_number":377,"box":{"x":116,"y":847,"width":755,"height":12}},{"id":"14d3715f-e26b-4b7e-906a-10ec8b4db242","block_type":"box","text":"the underlying reference instrument remaining unchanged. When a Fund invests in ETNs, it will bear","page_number":377,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"8f8a6472-efbf-439e-abcd-bcd2473323e6","block_type":"box","text":"its proportionate share of any fees and expenses borne by the ETN.","page_number":377,"box":{"x":117,"y":878,"width":509,"height":12}},{"id":"93c5f09e-d86a-42ea-b665-5e07b8c193e8","block_type":"box","text":"II-38","page_number":377,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d8810c9d-7860-4cd6-b25d-6697a9ee5de9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":377,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"34d5fad7-bab8-4fce-95a0-1aa358a3ffc5","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference","page_number":378,"box":{"x":116,"y":87,"width":720,"height":12}},{"id":"9f18079a-0b61-4909-9902-e8bd78d40ab5","block_type":"box","text":"instrument. ETNs also incur certain expenses not incurred by their applicable reference instrument.","page_number":378,"box":{"x":117,"y":102,"width":740,"height":13}},{"id":"7bd195b5-dff1-4dd9-ae5f-2d202bdd7794","block_type":"box","text":"Some ETNs that use leverage may, at times, be illiquid and","page_number":378,"box":{"x":116,"y":118,"width":446,"height":12}},{"id":"3b334d1d-1dd1-4132-a516-800a6219b5b4","block_type":"box","text":"may be difficult to purchase or sell at a fair","page_number":378,"box":{"x":563,"y":118,"width":319,"height":12}},{"id":"7fa92e26-ca76-4fb6-9851-2d72b9de36e5","block_type":"box","text":"price. Levered ETNs are subject to the same risk as other instruments that use leverage in any form.","page_number":378,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"d4ac3272-4d3f-4938-b375-ca703f7eb5bc","block_type":"box","text":"While leverage allows for greater potential return, the potential for loss is also greater. Finally,","page_number":378,"box":{"x":116,"y":149,"width":700,"height":12}},{"id":"06575fb1-ef71-4172-948b-21fecd93b194","block_type":"box","text":"additional losses may be incurred if the investment loses value because, in addition to the money lost","page_number":378,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"5c7a9b1f-97d4-4c93-bc97-01ccf14295a2","block_type":"box","text":"on the investment, the loan still needs to be repaid.","page_number":378,"box":{"x":116,"y":180,"width":384,"height":12}},{"id":"f5dfd550-d64b-4254-80ca-bd14a8cf3c38","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its","page_number":378,"box":{"x":117,"y":210,"width":685,"height":12}},{"id":"539002f5-82f1-48e9-9f76-139d5de12caf","block_type":"box","text":"obligations, the value of the ETN may change due to a change in the issuer’s credit rating, despite no","page_number":378,"box":{"x":116,"y":226,"width":757,"height":12}},{"id":"f803b4eb-e708-450a-a755-54c2ae43f7a9","block_type":"box","text":"change in the underlying reference instrument. The market value of ETN shares may differ from the","page_number":378,"box":{"x":116,"y":241,"width":744,"height":12}},{"id":"4ddcf652-6f12-4153-bf89-886a965412fc","block_type":"box","text":"value of the reference instrument. This difference in price may be due to the fact that the supply and","page_number":378,"box":{"x":116,"y":257,"width":748,"height":12}},{"id":"54df5376-6cef-4b3a-b104-f15e6e41e6f4","block_type":"box","text":"demand in the market for ETN shares at any point in time is not always identical to the supply and","page_number":378,"box":{"x":116,"y":272,"width":732,"height":12}},{"id":"5147786a-dc5b-4007-a716-feb648982985","block_type":"box","text":"demand in the market for the assets underlying the reference instrument that the ETN seeks to track.","page_number":378,"box":{"x":116,"y":288,"width":755,"height":12}},{"id":"97618609-c2fb-419a-a7f6-c6542e2152ef","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally","page_number":378,"box":{"x":116,"y":318,"width":761,"height":12}},{"id":"7dafc144-01a1-4356-8499-40ffe55dec11","block_type":"box","text":"meant to be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the","page_number":378,"box":{"x":117,"y":333,"width":728,"height":12}},{"id":"c5bd6c60-64a1-40b6-a9e4-907b2c0cd39b","block_type":"box","text":"availability of a secondary market. An investor in an ETN could lose some or all of the amount","page_number":378,"box":{"x":116,"y":349,"width":701,"height":12}},{"id":"96e50bba-93fb-45d1-95e7-fc33eb309f98","block_type":"box","text":"invested.","page_number":378,"box":{"x":117,"y":364,"width":71,"height":10}},{"id":"b4706cea-2f2c-4866-a5e8-e50f2daba7c8","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a","page_number":378,"box":{"x":117,"y":394,"width":739,"height":12}},{"id":"f9e2cb28-6462-4f02-8ecb-74cfca443609","block_type":"box","text":"court may not uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and","page_number":378,"box":{"x":116,"y":410,"width":742,"height":12}},{"id":"462b0375-b534-47dc-9291-0491b95c7669","block_type":"box","text":"character of income and gains derived by a Fund from investments in ETNs may be affected by future","page_number":378,"box":{"x":116,"y":425,"width":762,"height":12}},{"id":"2eed1e07-0a9f-4038-a9a4-b8173ee6a9c4","block_type":"box","text":"legislation.","page_number":378,"box":{"x":117,"y":441,"width":83,"height":12}},{"id":"c3fa619d-d712-4dbc-a93d-b595fededc71","block_type":"box","text":"Foreign Investments.","page_number":378,"box":{"x":116,"y":471,"width":174,"height":12}},{"id":"8ca2f00a-7fa2-4e47-9d45-06c81db04117","block_type":"box","text":"Foreign Investment Risks.","page_number":378,"box":{"x":116,"y":494,"width":193,"height":12}},{"id":"9cf692ff-23e0-461d-ac7e-c25ff709b850","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from","page_number":378,"box":{"x":310,"y":493,"width":540,"height":13}},{"id":"351ee62a-f292-43dd-a1ab-069df9c95f88","block_type":"box","text":"issuers located in emerging market countries. These securities may be denominated in U.S. dollars or","page_number":378,"box":{"x":117,"y":509,"width":760,"height":12}},{"id":"468692e8-4205-471b-ac88-b0adcd9eb12e","block_type":"box","text":"in a foreign currency. Investing in foreign securities involves risks not typically associated with investing","page_number":378,"box":{"x":117,"y":524,"width":770,"height":13}},{"id":"6c3c362a-0aa8-4dfb-9c9a-debbfde1fbc4","block_type":"box","text":"in securities of companies organized and operated in the United States that can increase the chances","page_number":378,"box":{"x":117,"y":540,"width":759,"height":12}},{"id":"33c2252a-4699-4e5c-9ca6-4b18097f7188","block_type":"box","text":"that a Fund will lose money.","page_number":378,"box":{"x":116,"y":556,"width":213,"height":12}},{"id":"5af21157-41a7-429d-aa90-d70eca55dd4f","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be","page_number":378,"box":{"x":116,"y":586,"width":762,"height":12}},{"id":"6c7c570d-5542-4a9a-96a3-7b623ea457df","block_type":"box","text":"foreign securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are","page_number":378,"box":{"x":116,"y":601,"width":766,"height":12}},{"id":"9975e394-a602-48b0-bf12-e8b026a56705","block_type":"box","text":"conducted from the U.S., (ii) the company’s equity securities trade principally on a U.S. stock","page_number":378,"box":{"x":116,"y":617,"width":694,"height":12}},{"id":"83aeba11-1115-49db-b7d1-79db3178f48f","block_type":"box","text":"exchange, (iii) the company does a substantial amount of business in the U.S. or (iv) the issuer of","page_number":378,"box":{"x":116,"y":632,"width":729,"height":12}},{"id":"0eeafa8b-8684-48e7-b53a-993c68f37069","block_type":"box","text":"securities is included in the Fund’s primary U.S. benchmark index.","page_number":378,"box":{"x":116,"y":648,"width":496,"height":12}},{"id":"6fda85ac-f4d7-45c1-81e1-ee904037417f","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations","page_number":378,"box":{"x":117,"y":678,"width":721,"height":12}},{"id":"9afbae34-61d6-409b-8e41-0fdfbd523ff3","block_type":"box","text":"issued or guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities","page_number":378,"box":{"x":117,"y":693,"width":762,"height":12}},{"id":"880d21a3-e0b6-473a-8127-11d892e061f3","block_type":"box","text":"or political subdivisions, including a foreign state, province or municipality; (b) debt obligations of","page_number":378,"box":{"x":116,"y":709,"width":716,"height":12}},{"id":"14f0e10b-8c74-4a41-bd68-ea11f5a9ae25","block_type":"box","text":"supranational organizations; (c) debt obligations of foreign banks and bank holding companies;","page_number":378,"box":{"x":116,"y":724,"width":703,"height":12}},{"id":"6bdc1827-dd89-41c6-9c52-8b29254b67b8","block_type":"box","text":"(d) debt obligations of domestic banks and corporations issued in foreign currencies; (e) debt","page_number":378,"box":{"x":117,"y":740,"width":689,"height":12}},{"id":"2f13230b-e819-41f7-b424-406ac326c223","block_type":"box","text":"obligations denominated in the Euro; and (f) foreign corporate debt securities and commercial paper.","page_number":378,"box":{"x":116,"y":755,"width":746,"height":12}},{"id":"7c135d6f-7ea0-4448-81a5-5365204640b4","block_type":"box","text":"Such securities may include loan participations and assignments, convertible securities and","page_number":378,"box":{"x":116,"y":771,"width":678,"height":12}},{"id":"881dadf8-67f4-4203-95d8-60b1e643e87c","block_type":"box","text":"zero-coupon securities.","page_number":378,"box":{"x":116,"y":786,"width":172,"height":12}},{"id":"63361623-a85b-4ddb-9ee2-041856400fbb","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign","page_number":378,"box":{"x":117,"y":816,"width":723,"height":12}},{"id":"a4dd6fcd-d45b-45b0-a846-201bd220cd99","block_type":"box","text":"withholding taxes.","page_number":378,"box":{"x":116,"y":832,"width":138,"height":12}},{"id":"50a3b223-cf00-4ffc-8356-af9a59eb73da","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign","page_number":378,"box":{"x":116,"y":862,"width":715,"height":12}},{"id":"85a56f39-1f88-4e77-bbe6-aa341efe9d4e","block_type":"box","text":"exchanges or in foreign markets that are closed when the securities exchange on which the Fund’s","page_number":378,"box":{"x":116,"y":877,"width":740,"height":12}},{"id":"84562725-01b0-42a5-b430-e5a9385c72bb","block_type":"box","text":"II-39","page_number":378,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b1500e65-ceca-4233-ae60-e263dfaa37ca","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":378,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"28613094-90ff-4d1f-afb3-0099534b93ca","block_type":"box","text":"shares trade is open, there are likely to be deviations between the current price of such an underlying","page_number":379,"box":{"x":116,"y":87,"width":758,"height":12}},{"id":"873812c2-1e64-4e14-8ec9-984765c9957e","block_type":"box","text":"security and the last quoted price for the underlying security (i.e., the Fund’s quote from the closed","page_number":379,"box":{"x":116,"y":102,"width":736,"height":13}},{"id":"4bbac002-5061-46ca-9377-bedfb026fa63","block_type":"box","text":"foreign market). The impact of a closed foreign market on a Fund is likely to be greater where a large","page_number":379,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"c7bdc8ab-5c95-4294-97b2-6d3634f7134b","block_type":"box","text":"portion of the Fund’s underlying securities or other instruments trade on that closed foreign market or","page_number":379,"box":{"x":117,"y":134,"width":754,"height":12}},{"id":"bea32bb3-14f6-4b18-896d-9f4ac7014683","block_type":"box","text":"when the foreign market is closed for unscheduled reasons. These deviations may result in premiums","page_number":379,"box":{"x":116,"y":149,"width":759,"height":12}},{"id":"f0f71eca-7714-4f52-9ca4-36eb661ddd65","block_type":"box","text":"or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":379,"box":{"x":116,"y":165,"width":718,"height":12}},{"id":"48b421b8-f1ba-4f36-a349-3cbb977fa50e","block_type":"box","text":"Foreign Market Risk.","page_number":379,"box":{"x":116,"y":196,"width":152,"height":12}},{"id":"d0aaa0c7-dbbb-44b0-ac50-e5a0a4b2d414","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more","page_number":379,"box":{"x":269,"y":196,"width":521,"height":12}},{"id":"3f8d63af-2ba5-4b46-9359-db1aeaef17ae","block_type":"box","text":"diversification than a Fund that invests only in the United States because securities traded on foreign","page_number":379,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"c9593d3f-7079-4224-a25a-139ddcaa151e","block_type":"box","text":"markets have often (though not always) performed differently from securities traded in the United","page_number":379,"box":{"x":117,"y":227,"width":715,"height":12}},{"id":"e35e65cf-098c-4dc6-8998-93292fb6b5a5","block_type":"box","text":"States. However, such investments often involve risks not present in U.S. investments that can increase","page_number":379,"box":{"x":116,"y":242,"width":769,"height":12}},{"id":"92e6bc59-14bf-4b0d-b2e0-0863fc8eca58","block_type":"box","text":"the chances that a Fund will lose money. In particular, a Fund is subject to the risk that, because there","page_number":379,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"fb4af186-76e4-4202-b9b1-a862c3f87a07","block_type":"box","text":"are generally fewer investors on foreign exchanges and a smaller number of shares traded each day, it","page_number":379,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"a1dbea85-4106-49bb-90e8-e0b81aecbc20","block_type":"box","text":"may be difficult for the Fund to buy and sell securities on those exchanges. In addition, prices of foreign","page_number":379,"box":{"x":117,"y":289,"width":763,"height":12}},{"id":"b5e433e7-02a4-4502-b16c-47bd413003a3","block_type":"box","text":"securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":379,"box":{"x":116,"y":304,"width":719,"height":12}},{"id":"a8ec9f07-270c-4738-9c09-57f74c23cdfa","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of","page_number":379,"box":{"x":116,"y":320,"width":727,"height":12}},{"id":"da40f790-8a20-4717-bf0c-fc75ba6e123a","block_type":"box","text":"punitive taxes or tariffs. In addition, economic conditions, such as volatile currency exchange rates and","page_number":379,"box":{"x":117,"y":335,"width":759,"height":12}},{"id":"f068352a-a4b1-4799-a412-f8bda1183572","block_type":"box","text":"interest rates, political events, military action and other conditions may, without prior warning, lead to the","page_number":379,"box":{"x":117,"y":351,"width":770,"height":12}},{"id":"803d685f-511d-4c63-9fe0-79e0d3a3423e","block_type":"box","text":"governments of certain countries, or the U.S. Government with respect to certain countries, prohibiting","page_number":379,"box":{"x":116,"y":366,"width":756,"height":12}},{"id":"ab850b3d-1b79-4736-aa10-7beb97d92ee2","block_type":"box","text":"or imposing substantial restrictions through capital controls and/or sanctions on foreign investing in the","page_number":379,"box":{"x":116,"y":382,"width":758,"height":12}},{"id":"05d241f3-dd2d-439f-ad48-125c12722b28","block_type":"box","text":"capital markets or certain industries in those countries. Capital controls and/or sanctions may include","page_number":379,"box":{"x":116,"y":397,"width":746,"height":12}},{"id":"6db04b0d-74dc-4301-9864-b332fb28aa4b","block_type":"box","text":"the prohibition of, or restrictions on, the ability to own or transfer currency, securities, derivatives or","page_number":379,"box":{"x":116,"y":413,"width":730,"height":12}},{"id":"832b58c4-a67a-4185-bae5-3348ef768ed4","block_type":"box","text":"other assets and may also include retaliatory actions of one government against another government,","page_number":379,"box":{"x":116,"y":428,"width":752,"height":12}},{"id":"fdd21f02-2a1d-4842-bf72-f1cce45a200d","block_type":"box","text":"such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":379,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"5415bb74-4fcc-43b0-9555-92946f692389","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the","page_number":379,"box":{"x":116,"y":459,"width":738,"height":12}},{"id":"58a3c5cb-6b37-4943-b73c-8d7b300f37be","block_type":"box","text":"ability to transfer the Fund’s assets or income back into the United States, and could negatively impact","page_number":379,"box":{"x":116,"y":475,"width":758,"height":12}},{"id":"0fcf03e4-8c4c-4d69-9387-bcfc6b384456","block_type":"box","text":"the value and/or liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the","page_number":379,"box":{"x":116,"y":490,"width":757,"height":12}},{"id":"effb170a-1a6a-4755-b1ba-b55d61341178","block_type":"box","text":"Fund to decline in value. Other potential foreign market risks include exchange controls, difficulties in","page_number":379,"box":{"x":117,"y":506,"width":745,"height":12}},{"id":"c318fe61-f3b6-443b-8629-7c29945f3c6a","block_type":"box","text":"pricing securities, defaults on foreign government securities, difficulties in enforcing favorable legal","page_number":379,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"dc96c2cc-0256-4b2d-b099-8cbc1111b211","block_type":"box","text":"judgments in foreign courts, and political and social conditions, such as diplomatic relations,","page_number":379,"box":{"x":115,"y":537,"width":680,"height":12}},{"id":"a39f1689-0f9b-49f7-8ead-9d878bea1728","block_type":"box","text":"confiscatory taxation, expropriation, limitation on the removal of funds or assets, or imposition of (or","page_number":379,"box":{"x":116,"y":552,"width":735,"height":12}},{"id":"eb574d00-17ac-49df-9624-2f8db8d78989","block_type":"box","text":"change in) exchange control regulations. Legal remedies available to investors in certain foreign","page_number":379,"box":{"x":116,"y":568,"width":711,"height":12}},{"id":"df29ca03-8557-4391-a4d7-07b73327eb28","block_type":"box","text":"countries may be less extensive than those available to investors in the United States or other foreign","page_number":379,"box":{"x":116,"y":583,"width":751,"height":12}},{"id":"862d738c-4e31-4ea3-8d1d-7245a1b18bdb","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the","page_number":379,"box":{"x":116,"y":599,"width":752,"height":12}},{"id":"591cf102-49f6-4a7a-b779-06d8be3ff390","block_type":"box","text":"United States or abroad could result in appreciation or depreciation of portfolio securities and could","page_number":379,"box":{"x":117,"y":614,"width":731,"height":12}},{"id":"9fae02b8-04ec-4913-b5e8-0c645ffc333d","block_type":"box","text":"favorably or adversely affect a Fund’s operations.","page_number":379,"box":{"x":116,"y":630,"width":368,"height":12}},{"id":"a6b784f0-404f-41f1-9094-ed6a0bd77c48","block_type":"box","text":"Foreign Economy Risk.","page_number":379,"box":{"x":116,"y":661,"width":172,"height":12}},{"id":"816bbb47-bc96-45b7-8c7b-fc9e2fa383d3","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with","page_number":379,"box":{"x":295,"y":661,"width":579,"height":12}},{"id":"1d4791f5-52c4-4460-be26-790b84e9bfdc","block_type":"box","text":"that of the United States with respect to such issues as growth of gross national product, reinvestment","page_number":379,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"cd7f845e-ad31-4c53-bc05-f059207eca33","block_type":"box","text":"of capital, resources, and balance of payments position. Certain such economies may rely heavily on","page_number":379,"box":{"x":116,"y":692,"width":748,"height":12}},{"id":"b17bcbb9-3acd-4a7f-9231-6780f5d875c2","block_type":"box","text":"particular industries or foreign capital and are more vulnerable to diplomatic developments, the","page_number":379,"box":{"x":117,"y":707,"width":702,"height":12}},{"id":"d34b5e81-3ead-44f7-9387-8761e5b0243d","block_type":"box","text":"imposition of economic sanctions against a particular country or countries, changes in international","page_number":379,"box":{"x":117,"y":723,"width":731,"height":12}},{"id":"6495d52e-d1f1-45ce-8b51-12c66b7e8de3","block_type":"box","text":"trading patterns, trade barriers, and other protectionist or retaliatory measures.","page_number":379,"box":{"x":116,"y":738,"width":582,"height":12}},{"id":"fe6ccd32-3661-4264-bd01-7d2cadbab039","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":379,"box":{"x":117,"y":769,"width":257,"height":12}},{"id":"0a4e9974-f7f7-4029-bfeb-d73f72bb0430","block_type":"box","text":"Because foreign securities generally are denominated and pay","page_number":379,"box":{"x":382,"y":769,"width":464,"height":12}},{"id":"b05db75d-45f8-47b4-add8-a5128ea44f31","block_type":"box","text":"dividends or interest in foreign currencies, the value of a Fund that invests in foreign securities as","page_number":379,"box":{"x":116,"y":785,"width":721,"height":12}},{"id":"2eb229d0-2d6c-4ccd-8594-1b2da757c97b","block_type":"box","text":"measured in U.S. dollars will be affected favorably or unfavorably by changes in exchange rates.","page_number":379,"box":{"x":117,"y":800,"width":715,"height":12}},{"id":"9e14a891-7643-48b8-b5a1-ae8ce8128e5f","block_type":"box","text":"Generally, when the U.S. dollar rises in value against a foreign currency, a security denominated in","page_number":379,"box":{"x":117,"y":816,"width":733,"height":12}},{"id":"75c29c26-4353-4562-b447-5fe3235c709f","block_type":"box","text":"that currency loses value because the currency is worth fewer U.S. dollars. Conversely, when the U.S.","page_number":379,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"aaf4822e-7056-4701-9c29-065d04465ce0","block_type":"box","text":"dollar decreases in value against a foreign currency, a security denominated in that currency gains","page_number":379,"box":{"x":116,"y":847,"width":737,"height":12}},{"id":"6fb4002e-0e60-412b-9679-3e92f2ea9923","block_type":"box","text":"value because the currency is worth more U.S. dollars. This risk, generally known as “currency risk,”","page_number":379,"box":{"x":116,"y":862,"width":749,"height":12}},{"id":"5c6e3faa-859a-450f-b97d-1de04cbbfa3b","block_type":"box","text":"means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will","page_number":379,"box":{"x":117,"y":878,"width":738,"height":12}},{"id":"e55e3f48-80b3-42b8-9263-77e116d18ac8","block_type":"box","text":"II-40","page_number":379,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ca05d8fa-3598-44af-bbf8-8bf6e8fcc3bc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":379,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d76e1a33-0c4c-4d6b-be30-8e0a56d6903b","block_type":"box","text":"increase those returns. Currency exchange rates can also be affected unpredictably by intervention by","page_number":380,"box":{"x":117,"y":87,"width":764,"height":12}},{"id":"12cbe88f-d868-4816-9a20-16b716e7148d","block_type":"box","text":"U.S. or foreign governments or central banks, or the failure to intervene, or buy currency controls or","page_number":380,"box":{"x":117,"y":102,"width":743,"height":13}},{"id":"8c80d7e2-e4c9-4ce3-864a-6eff87bdf62c","block_type":"box","text":"political developments in the United States or abroad.","page_number":380,"box":{"x":117,"y":118,"width":402,"height":12}},{"id":"6f54bcde-9b73-4415-ba9f-85b3f0d92ba5","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards. Many foreign governments","page_number":380,"box":{"x":117,"y":149,"width":697,"height":12}},{"id":"7d5d1b2a-7bbe-4811-b840-f6aa5b8cb57c","block_type":"box","text":"supervise and regulate stock exchanges, brokers and the sale of securities less than does the United","page_number":380,"box":{"x":116,"y":165,"width":756,"height":12}},{"id":"4d9eb967-7907-417a-8e88-d87afdc59c26","block_type":"box","text":"States. Some countries may not have laws to protect investors comparable to the U.S. securities laws.","page_number":380,"box":{"x":116,"y":180,"width":765,"height":12}},{"id":"b21a702e-772e-4209-b493-0b7e8c1b8258","block_type":"box","text":"For example, some foreign countries may have no laws or rules against insider trading. Insider trading","page_number":380,"box":{"x":117,"y":196,"width":762,"height":12}},{"id":"9ae732f0-69ce-4dd1-aeb5-3fa2b134e5d9","block_type":"box","text":"occurs when a person buys or sells a company’s securities based on nonpublic information about that","page_number":380,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"134719a8-e5b0-4578-aa6c-e410b0e866e5","block_type":"box","text":"company. Accounting standards in other countries are not necessarily the same as in the United","page_number":380,"box":{"x":116,"y":227,"width":719,"height":12}},{"id":"7922d7b5-d424-47dd-86b3-c5b665833006","block_type":"box","text":"States. If the accounting standards in another country do not require as much detail as U.S. accounting","page_number":380,"box":{"x":116,"y":242,"width":771,"height":12}},{"id":"3b5ff15b-ad24-4a16-beeb-ced665c5d468","block_type":"box","text":"standards, it may be harder for Fund management to completely and accurately determine a","page_number":380,"box":{"x":116,"y":258,"width":691,"height":12}},{"id":"c40dcdd2-0176-4b0a-829f-fd50653f1ae9","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past","page_number":380,"box":{"x":116,"y":273,"width":722,"height":12}},{"id":"5a4bc437-1a3d-43bc-adea-e7b73167d250","block_type":"box","text":"imposed restrictions, through penalties and otherwise, on foreign investments by U.S. investors such","page_number":380,"box":{"x":117,"y":289,"width":752,"height":12}},{"id":"b4c6ad54-16e3-4115-8fe3-60eeb3cc4923","block_type":"box","text":"as the Fund. If such restrictions should be reinstituted, it might become necessary for the Fund to","page_number":380,"box":{"x":116,"y":304,"width":727,"height":12}},{"id":"8432d6bb-b891-4b26-8248-87f2907577bb","block_type":"box","text":"invest all or substantially all of its assets in U.S. securities. Also, brokerage commissions and other","page_number":380,"box":{"x":117,"y":320,"width":737,"height":12}},{"id":"a64a5886-1a50-4ca1-87eb-6d512b6fae6b","block_type":"box","text":"costs of buying or selling securities often are higher in foreign countries than they are in the United","page_number":380,"box":{"x":116,"y":335,"width":736,"height":12}},{"id":"0f0a3adb-04be-4260-9f33-655412b8ab2b","block_type":"box","text":"States. This reduces the amount the Fund can earn on its investments.","page_number":380,"box":{"x":116,"y":351,"width":532,"height":9}},{"id":"71c8cdb6-8826-4943-a956-6fa150b5364a","block_type":"box","text":"Certain Risks of Holding Fund Assets Outside the United States.","page_number":380,"box":{"x":117,"y":382,"width":477,"height":12}},{"id":"6051ab19-ed6b-47a0-9b28-012c4d6e3c25","block_type":"box","text":"A Fund generally holds its foreign","page_number":380,"box":{"x":596,"y":382,"width":259,"height":12}},{"id":"7e361b73-47b9-4c43-a969-94eea2bb5751","block_type":"box","text":"securities and cash in foreign banks and securities depositories. Some foreign banks and securities","page_number":380,"box":{"x":116,"y":397,"width":743,"height":12}},{"id":"0bfa2511-9860-42dc-a7e6-0490b7710ecf","block_type":"box","text":"depositories may be recently organized or new to the foreign custody business. In addition, there may","page_number":380,"box":{"x":116,"y":413,"width":760,"height":12}},{"id":"b1e3b709-5ca5-4d74-82ec-6b566e1d1633","block_type":"box","text":"be limited or no regulatory oversight over their operations. Also, the laws of certain countries may put","page_number":380,"box":{"x":117,"y":428,"width":754,"height":12}},{"id":"a0b8bfa3-fbcb-42fd-ab7d-6d7355a1308c","block_type":"box","text":"limits on a Fund’s ability to recover its assets if a foreign bank or depository or issuer of a security or","page_number":380,"box":{"x":117,"y":444,"width":747,"height":12}},{"id":"77209bd6-9229-4695-9baf-94192576ab9c","block_type":"box","text":"any of their agents goes bankrupt. In addition, it is often more expensive for a Fund to buy, sell and","page_number":380,"box":{"x":116,"y":459,"width":741,"height":12}},{"id":"e14c9c77-df6d-44ce-91a6-234be6f22f2b","block_type":"box","text":"hold securities in certain foreign markets than in the United States. The increased expense of investing","page_number":380,"box":{"x":117,"y":475,"width":768,"height":12}},{"id":"faab220f-730f-4689-bb90-3e3290f82181","block_type":"box","text":"in foreign markets reduces the amount a Fund can earn on its investments and typically results in a","page_number":380,"box":{"x":117,"y":490,"width":741,"height":12}},{"id":"27a79923-584b-43cf-8588-da2090e0bb0f","block_type":"box","text":"higher operating expense ratio for the Fund as compared to investment companies that invest only in","page_number":380,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"69e6bfa8-caa7-4c77-81d6-c3d5a3f2f3cd","block_type":"box","text":"the United States.","page_number":380,"box":{"x":116,"y":521,"width":138,"height":10}},{"id":"6e027549-0e3c-489f-a53d-962c2017c79a","block_type":"box","text":"Publicly Available Information.","page_number":380,"box":{"x":116,"y":552,"width":222,"height":12}},{"id":"e30bdec7-9c97-4c40-93cd-a018bc35742b","block_type":"box","text":"In general, less information is publicly available with respect to foreign","page_number":380,"box":{"x":340,"y":552,"width":529,"height":12}},{"id":"e6f8b0e6-9e55-4ddb-9e5e-000b37b12f70","block_type":"box","text":"issuers than is available with respect to U.S. companies. Most foreign companies are also not subject","page_number":380,"box":{"x":117,"y":568,"width":758,"height":12}},{"id":"9e16badc-45e5-4b80-bb03-45142d91caf0","block_type":"box","text":"to the uniform accounting and financial reporting requirements applicable to issuers in the United","page_number":380,"box":{"x":116,"y":583,"width":723,"height":12}},{"id":"75a0774f-2ad6-4c22-873a-3bedec947923","block_type":"box","text":"States. While the volume of transactions effected on foreign stock exchanges has increased in recent","page_number":380,"box":{"x":116,"y":599,"width":758,"height":12}},{"id":"06b5b110-619e-4307-8da3-cff7014cddac","block_type":"box","text":"years, it remains appreciably below that of the New York Stock Exchange. Accordingly, a Fund’s","page_number":380,"box":{"x":116,"y":614,"width":721,"height":12}},{"id":"31e50618-8e0c-4efa-985b-d947f43e0c70","block_type":"box","text":"foreign investments may be less liquid than, and their prices may be more volatile than, comparable","page_number":380,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"b1194568-9313-4e2b-8343-7743a2fab15f","block_type":"box","text":"investments in securities in U.S. companies. In addition, there is generally less government supervision","page_number":380,"box":{"x":117,"y":645,"width":771,"height":12}},{"id":"b48f1aa9-f41c-4954-ac59-16f7f813fe66","block_type":"box","text":"and regulation of securities exchanges, brokers and issuers in foreign countries than in the United","page_number":380,"box":{"x":116,"y":661,"width":726,"height":12}},{"id":"5a9a7a4a-231e-4f83-867f-f194aabe37e0","block_type":"box","text":"States.","page_number":380,"box":{"x":116,"y":676,"width":51,"height":10}},{"id":"65fe2c62-2517-40e8-8076-ab8fa6df3581","block_type":"box","text":"Settlement Risk.","page_number":380,"box":{"x":117,"y":707,"width":120,"height":10}},{"id":"4469eaed-d20b-42ae-a703-abcfecb28397","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly","page_number":380,"box":{"x":244,"y":707,"width":606,"height":12}},{"id":"1ecd269e-4eba-4148-941e-98033597eb9f","block_type":"box","text":"from those in the United States. Supervisory authorities may also be unable to apply standards which","page_number":380,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"700508a5-7a26-43db-890d-a1420eb88a2d","block_type":"box","text":"are comparable with those in the United States. Foreign settlement procedures and trade regulations","page_number":380,"box":{"x":116,"y":738,"width":749,"height":12}},{"id":"e3ff0b2f-58d6-47d9-911c-e8632d72b828","block_type":"box","text":"also may involve certain risks (such as delays in payment for or delivery of securities) not typically","page_number":380,"box":{"x":116,"y":754,"width":727,"height":12}},{"id":"11a0328a-a002-4d89-afa4-8e735c8b9996","block_type":"box","text":"generated by the settlement of U.S. investments.","page_number":380,"box":{"x":116,"y":769,"width":362,"height":12}},{"id":"62ddc771-0996-44ba-8beb-b1ef7e164c60","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable,","page_number":380,"box":{"x":117,"y":800,"width":704,"height":12}},{"id":"8429a942-0e24-47b7-8d07-f15a5702bf94","block_type":"box","text":"increasing the risk of delayed settlements or losses of security certificates in markets that still rely on","page_number":380,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"b82ddc63-18c1-4945-905c-b9e12faa9872","block_type":"box","text":"physical settlement. Settlements in certain foreign countries at times have not kept pace with the","page_number":380,"box":{"x":117,"y":831,"width":720,"height":12}},{"id":"e56c8e61-8567-4016-b9a6-de51312d1a21","block_type":"box","text":"number of securities transactions; these problems may make it difficult for a Fund to carry out","page_number":380,"box":{"x":117,"y":847,"width":698,"height":12}},{"id":"3dfd1734-e2fa-46c7-9b6e-56f861823cfa","block_type":"box","text":"transactions. If a Fund cannot settle or is delayed in settling a purchase of securities, it may miss","page_number":380,"box":{"x":116,"y":862,"width":723,"height":12}},{"id":"0a8864cb-a765-47f9-a595-4ab1df745058","block_type":"box","text":"attractive investment opportunities and certain of its assets may be uninvested with no return earned","page_number":380,"box":{"x":116,"y":878,"width":751,"height":12}},{"id":"55a26404-8e06-432b-a488-5a6e0d354528","block_type":"box","text":"II-41","page_number":380,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"cf276479-bce4-4e34-821a-4376547be9f5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":380,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8ff0a62d-c16c-4a31-8473-edb65e2b90b4","block_type":"box","text":"thereon for some period. If a Fund cannot settle or is delayed in settling a sale of securities, it may lose","page_number":381,"box":{"x":116,"y":87,"width":769,"height":12}},{"id":"52f02a01-0eac-4aa9-8d27-3134ab206a70","block_type":"box","text":"money if the value of the security then declines or, if it has contracted to sell the security to another","page_number":381,"box":{"x":117,"y":102,"width":739,"height":13}},{"id":"f0fb4151-7e5c-4cda-ba3d-0cfb35a50c2d","block_type":"box","text":"party, the Fund could be liable to that party for any losses incurred.","page_number":381,"box":{"x":117,"y":118,"width":501,"height":12}},{"id":"6bb9d8b4-9e5e-443c-8041-5b0ba636fb30","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing","page_number":381,"box":{"x":117,"y":149,"width":720,"height":12}},{"id":"978d55f4-a0ce-4e27-b0d9-a129134df8dd","block_type":"box","text":"claims may arise in respect of securities held by or to be transferred to a Fund. Compensation","page_number":381,"box":{"x":116,"y":165,"width":703,"height":12}},{"id":"1621928a-3bbb-46f9-afdd-93cbef74d13e","block_type":"box","text":"schemes may not exist or may otherwise be limited or inadequate to meet the Fund’s claims in case of","page_number":381,"box":{"x":116,"y":180,"width":766,"height":12}},{"id":"7cbc9d90-20ab-4380-ba56-afd5a0d4527d","block_type":"box","text":"such event.","page_number":381,"box":{"x":116,"y":196,"width":90,"height":9}},{"id":"a9dba791-359b-4cf7-9133-f47a76a9e3ea","block_type":"box","text":"Sovereign Debt.","page_number":381,"box":{"x":117,"y":227,"width":118,"height":12}},{"id":"1832881c-e87c-49c6-872a-e0f84ba1fb34","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental","page_number":381,"box":{"x":236,"y":227,"width":616,"height":12}},{"id":"d00a6a96-a9c7-4c15-a1dc-e82f6b669e11","block_type":"box","text":"entity that controls the repayment of sovereign debt may not be able or willing to repay the principal","page_number":381,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"10a1f034-ef2b-46c1-99b6-4b7ad126c1f4","block_type":"box","text":"and/or interest when due in accordance with the terms of such debt. A governmental entity’s","page_number":381,"box":{"x":116,"y":258,"width":689,"height":12}},{"id":"975558a4-4b29-4b46-8eec-8f8094362f5b","block_type":"box","text":"willingness or ability to repay principal and interest due in a timely manner may be affected by, among","page_number":381,"box":{"x":116,"y":273,"width":761,"height":12}},{"id":"13152ad1-0e79-497d-bbeb-eda445b7a9fb","block_type":"box","text":"other factors, its cash flow situation, the extent of its foreign reserves, the availability of sufficient","page_number":381,"box":{"x":116,"y":289,"width":721,"height":12}},{"id":"5a2fb0c9-fc31-4845-b310-c6bc5c9c8a4d","block_type":"box","text":"foreign exchange on the date a payment is due, the relative size of the debt service burden to the","page_number":381,"box":{"x":116,"y":304,"width":728,"height":12}},{"id":"acbfccdc-c300-40d6-9ee1-5e606ce07898","block_type":"box","text":"economy as a whole, the governmental entity’s policy towards the International Monetary Fund and the","page_number":381,"box":{"x":116,"y":320,"width":770,"height":12}},{"id":"30257e4b-e4af-4de5-ace2-fcdf4a59f447","block_type":"box","text":"political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":381,"box":{"x":117,"y":335,"width":764,"height":12}},{"id":"be999723-f759-4db8-9970-5457b8f6f24b","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others","page_number":381,"box":{"x":116,"y":351,"width":738,"height":12}},{"id":"55929876-a750-49f5-a31f-cdb99385061f","block_type":"box","text":"abroad to reduce principal and interest arrearages on their debt. The commitment on the part of these","page_number":381,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"d60ba732-4491-4c0b-a341-d827d316e76c","block_type":"box","text":"governments, agencies and others to make such disbursements may be conditioned on the","page_number":381,"box":{"x":116,"y":382,"width":684,"height":12}},{"id":"5671bdcf-fc4e-4a0c-9cd2-fef97f8dc5e2","block_type":"box","text":"implementation of economic reforms and/or economic performance and the timely service of such","page_number":381,"box":{"x":117,"y":397,"width":730,"height":12}},{"id":"f7ce0421-9b72-4c1c-a261-097dbb4ffdb8","block_type":"box","text":"debtor’s obligations. Failure to implement such reforms, achieve such levels of economic performance","page_number":381,"box":{"x":116,"y":413,"width":763,"height":12}},{"id":"fab41876-dbf2-472e-bad4-5ac63db297b3","block_type":"box","text":"or repay principal or interest when due may result in the cancellation of such third parties’","page_number":381,"box":{"x":116,"y":428,"width":668,"height":12}},{"id":"74daa985-a3c8-492d-9818-986d55ed53c1","block_type":"box","text":"commitments to lend funds to the governmental entity, which may further impair such debtor’s ability or","page_number":381,"box":{"x":116,"y":444,"width":769,"height":12}},{"id":"5551d5dc-e60c-4b88-ba62-df682ac2b9fa","block_type":"box","text":"willingness to timely service its debts. Consequently, governmental entities may default on their","page_number":381,"box":{"x":116,"y":459,"width":713,"height":12}},{"id":"21335581-421f-486e-b3fb-d103d955b675","block_type":"box","text":"sovereign debt.","page_number":381,"box":{"x":116,"y":475,"width":119,"height":12}},{"id":"1e214b32-a0c2-49b0-85fe-0ddc621e1244","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to","page_number":381,"box":{"x":117,"y":506,"width":730,"height":12}},{"id":"992a509e-291e-45d9-b254-34a7718847e2","block_type":"box","text":"extend further loans to governmental entities. In the event of a default by a governmental entity, there","page_number":381,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"8b938e43-1671-4e1c-bb54-227a223ceb5c","block_type":"box","text":"may be few or no effective legal remedies for collecting on such debt.","page_number":381,"box":{"x":117,"y":537,"width":519,"height":12}},{"id":"a4bbc09b-935a-4390-99ce-f1265abb6288","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":381,"box":{"x":118,"y":568,"width":230,"height":12}},{"id":"e4b8d149-0c50-4607-bf8e-226a3ee815f3","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on","page_number":381,"box":{"x":349,"y":568,"width":475,"height":12}},{"id":"5978c591-3c06-45b7-99c4-6d427f9826b6","block_type":"box","text":"dividend and interest income (if any) received from issuers in certain countries and capital gains on the","page_number":381,"box":{"x":116,"y":583,"width":768,"height":12}},{"id":"b4b5c1d5-f438-48e2-ade5-62ac78b65f91","block_type":"box","text":"disposition of stocks or securities where such withholding tax reclaim is possible. Whether or when a","page_number":381,"box":{"x":116,"y":599,"width":751,"height":12}},{"id":"345d1cb0-fdeb-495d-8d80-ddcfec082be9","block_type":"box","text":"Fund will receive a withholding tax refund is within the control of the tax authorities in such countries.","page_number":381,"box":{"x":117,"y":614,"width":751,"height":12}},{"id":"542b1bff-a4f5-4c38-9364-921aa5aa6344","block_type":"box","text":"Where a Fund expects to recover withholding taxes, the net asset value of the Fund generally includes","page_number":381,"box":{"x":116,"y":630,"width":767,"height":12}},{"id":"9cc349b3-87c3-491d-9a7b-7b5a179d3ecf","block_type":"box","text":"accruals for such tax refunds. Each Fund regularly evaluates the probability of recovery. If the","page_number":381,"box":{"x":116,"y":645,"width":701,"height":12}},{"id":"d3d6df10-ad9a-465a-a6cd-2ca1089b70f6","block_type":"box","text":"likelihood of recovery materially decreases, due to, for example, a change in tax regulation or approach","page_number":381,"box":{"x":117,"y":661,"width":765,"height":12}},{"id":"ded23573-c9bd-408b-9d12-737495536671","block_type":"box","text":"in the foreign country, accruals in a Fund’s net asset value for such refunds may be written down","page_number":381,"box":{"x":117,"y":676,"width":716,"height":12}},{"id":"0db40db8-5be3-4b37-adc1-2ca4a9e95e73","block_type":"box","text":"partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the","page_number":381,"box":{"x":117,"y":692,"width":755,"height":12}},{"id":"8a4a6ea7-40ea-41e8-a2ff-314c6f21d52d","block_type":"box","text":"time an accrual is written down will bear the impact of the resulting reduction in net asset value","page_number":381,"box":{"x":116,"y":707,"width":703,"height":12}},{"id":"de271236-dd38-4b98-a806-ffb10aaf3b71","block_type":"box","text":"regardless of whether they were shareholders during the accrual period. Conversely, if a Fund receives","page_number":381,"box":{"x":117,"y":723,"width":765,"height":12}},{"id":"9c268a29-69bf-47c4-bcb4-d09b1f0c6a5c","block_type":"box","text":"a tax refund that has not been previously accrued, shareholders in the Fund at the time of the","page_number":381,"box":{"x":116,"y":738,"width":694,"height":12}},{"id":"b9e7a38f-2e99-401a-b489-49e0cd7314dd","block_type":"box","text":"successful recovery will benefit from the resulting increase in the Fund’s net asset value. Shareholders","page_number":381,"box":{"x":116,"y":754,"width":762,"height":12}},{"id":"ed6107d5-7e86-4090-8d0c-8174da1142b6","block_type":"box","text":"who sold their shares prior to such time will not benefit from such increase in the Fund’s net asset","page_number":381,"box":{"x":116,"y":769,"width":725,"height":12}},{"id":"91feda63-a37f-44c0-adb0-9dd75d1ea566","block_type":"box","text":"value.","page_number":381,"box":{"x":116,"y":785,"width":43,"height":9}},{"id":"30b85b20-685f-478a-9cfb-276083e814d3","block_type":"box","text":"U.S. Economic Trading Partners Risk.","page_number":381,"box":{"x":117,"y":816,"width":280,"height":12}},{"id":"d7c976ab-f4bc-4751-9342-6b0f1d5da95f","block_type":"box","text":"The United States is a significant, and in some cases the most","page_number":381,"box":{"x":404,"y":816,"width":464,"height":12}},{"id":"8d2da9fe-388d-46f3-8f05-3337351ec8ba","block_type":"box","text":"significant, trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a","page_number":381,"box":{"x":116,"y":831,"width":762,"height":12}},{"id":"6639c595-ee4a-42b1-a5ab-012310e775fb","block_type":"box","text":"result, economic conditions of such countries may be particularly affected by changes in the U.S.","page_number":381,"box":{"x":117,"y":847,"width":723,"height":12}},{"id":"f26aff9a-2765-4f81-9857-2f0d94a08d5a","block_type":"box","text":"economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs, changes","page_number":381,"box":{"x":116,"y":862,"width":770,"height":12}},{"id":"8450c73f-e094-48b6-b7a5-70ed21df871c","block_type":"box","text":"in the U.S. dollar exchange rate or an economic slowdown in the United States may have a material","page_number":381,"box":{"x":117,"y":878,"width":745,"height":12}},{"id":"f27decbf-1e87-468b-bf19-ed4349453803","block_type":"box","text":"II-42","page_number":381,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"bc18bb6b-358a-44a1-91f5-0dbc819662e8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":381,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c309520c-f0e2-47af-b30d-fc5d3bde5bff","block_type":"box","text":"adverse effect on a country’s economic conditions and, as a result, securities to which the Fund has","page_number":382,"box":{"x":116,"y":87,"width":746,"height":12}},{"id":"b7c98b4b-bd10-4a5a-8954-2158f9d64e17","block_type":"box","text":"exposure. Circumstances could arise that could prevent the timely payment of interest or principal on","page_number":382,"box":{"x":116,"y":102,"width":754,"height":13}},{"id":"771243a2-62fd-4e73-8dcf-b499330dab10","block_type":"box","text":"U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result","page_number":382,"box":{"x":117,"y":118,"width":760,"height":12}},{"id":"03d50c52-5f74-4c1c-b796-f7d7e47bbb4b","block_type":"box","text":"in substantial negative consequences for the U.S. economy and the global financial system.","page_number":382,"box":{"x":117,"y":134,"width":685,"height":12}},{"id":"8ef57e31-34e1-42d7-bf90-b80a3d3ef799","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including","page_number":382,"box":{"x":116,"y":166,"width":745,"height":12}},{"id":"cd27bc31-f564-4885-9c0e-4b1d19d1421a","block_type":"box","text":"traditional allies, such as certain European countries, and historical adversaries, such as North Korea,","page_number":382,"box":{"x":116,"y":182,"width":761,"height":11}},{"id":"8e8d3e6f-faec-4421-8719-0bc179e9fe86","block_type":"box","text":"Iran, China and Russia. If these relations were to worsen, it could adversely affect U.S. issuers as well","page_number":382,"box":{"x":117,"y":197,"width":763,"height":12}},{"id":"66d908c7-de97-426f-aa1d-27eed364d7aa","block_type":"box","text":"as non-U.S. issuers that rely on the United States for trade. The United States has also experienced","page_number":382,"box":{"x":116,"y":212,"width":748,"height":12}},{"id":"7168349d-17b1-4d0b-97ca-e5a6b46c0ead","block_type":"box","text":"increased internal unrest and discord. If these trends were to continue, it may have an adverse impact","page_number":382,"box":{"x":117,"y":228,"width":761,"height":12}},{"id":"e23e1fca-9022-41d3-9ec6-ac73d0304220","block_type":"box","text":"on the U.S. economy and many of the issuers in which a Fund may invest.","page_number":382,"box":{"x":116,"y":243,"width":557,"height":12}},{"id":"d272aa6a-7140-4c8f-9586-aeef0afa7030","block_type":"box","text":"Funding Agreements.","page_number":382,"box":{"x":116,"y":276,"width":171,"height":12}},{"id":"45d74bf4-a7e5-4069-a2e6-e8a481cfb3ab","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar","page_number":382,"box":{"x":289,"y":276,"width":561,"height":12}},{"id":"2f8ece76-4b79-4d5c-a36c-f4341aa368bf","block_type":"box","text":"funding agreements. In connection with these investments, a Fund makes cash contributions to a","page_number":382,"box":{"x":116,"y":291,"width":727,"height":12}},{"id":"bdc1fd7f-d083-4322-978c-8d98d40f80aa","block_type":"box","text":"deposit fund of an insurance company’s general account. The insurance company then credits to the","page_number":382,"box":{"x":116,"y":307,"width":753,"height":12}},{"id":"f3e2db86-b780-4986-937e-dc2cd3876a79","block_type":"box","text":"Fund on a monthly basis guaranteed interest, which is based on an index. The funding agreements","page_number":382,"box":{"x":117,"y":322,"width":740,"height":12}},{"id":"e28d8981-bd12-4376-ba33-a35109fa8754","block_type":"box","text":"provide that this guaranteed interest will not be less than a certain minimum rate. The purchase price","page_number":382,"box":{"x":117,"y":338,"width":753,"height":12}},{"id":"0da5d49d-ba30-4192-a1d3-a09eeb827dfa","block_type":"box","text":"paid for a funding agreement becomes part of the general assets of the insurance company, and the","page_number":382,"box":{"x":117,"y":353,"width":749,"height":12}},{"id":"2345f92b-1887-4eea-bf22-b0a871151ee7","block_type":"box","text":"contract is paid from the general assets of the insurance company. Generally, funding agreements are","page_number":382,"box":{"x":116,"y":369,"width":764,"height":12}},{"id":"f3fe7c15-902e-4b92-ba28-17948f5119b2","block_type":"box","text":"not assignable or transferable without the permission of the issuing insurance companies, and an","page_number":382,"box":{"x":117,"y":384,"width":726,"height":12}},{"id":"0c318fb3-75c0-41d4-8080-f968fc44af62","block_type":"box","text":"active secondary market in some funding agreements does not currently exist.","page_number":382,"box":{"x":116,"y":400,"width":586,"height":12}},{"id":"ed0ed38b-8631-496b-b9f2-0994fa691f7c","block_type":"box","text":"Guarantees","page_number":382,"box":{"x":117,"y":432,"width":91,"height":10}},{"id":"505e973a-6ba4-40cf-8287-bcb508bfbce6","block_type":"box","text":".","page_number":382,"box":{"x":209,"y":440,"width":3,"height":2}},{"id":"f75e3b1d-6fc8-40fc-80e9-9738a25bcedb","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate","page_number":382,"box":{"x":213,"y":432,"width":660,"height":12}},{"id":"ddde8eee-3e1b-4c52-a6d0-cd475c5ae249","block_type":"box","text":"from the issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will","page_number":382,"box":{"x":116,"y":448,"width":771,"height":12}},{"id":"b3eeff11-1c9a-4043-b0e0-a29c209a3a14","block_type":"box","text":"fulfill an issuer’s payment obligations under a security if the issuer is unable to do so.","page_number":382,"box":{"x":116,"y":463,"width":634,"height":12}},{"id":"d107d683-3a2d-4a40-94d7-1f25637fdabe","block_type":"box","text":"Illiquid Investments.","page_number":382,"box":{"x":116,"y":496,"width":157,"height":11}},{"id":"130005bf-9cfd-4343-8adb-82ae07cfde36","block_type":"box","text":"Each Fund may not acquire any illiquid in","page_number":382,"box":{"x":274,"y":496,"width":304,"height":12}},{"id":"5f913e2b-fe85-40b3-8e95-e52d8d2443a9","block_type":"box","text":"vestment if, immediately after the","page_number":382,"box":{"x":579,"y":496,"width":246,"height":12}},{"id":"ad46cd97-a712-40a9-9846-727af49bad25","block_type":"box","text":"acquisition, a Fund would have invested more than 15% of","page_number":382,"box":{"x":116,"y":511,"width":431,"height":12}},{"id":"8b18024f-bd42-44a4-a6a6-4913c9daa1e2","block_type":"box","text":"its net assets in illiquid investments. An illiquid","page_number":382,"box":{"x":548,"y":511,"width":338,"height":12}},{"id":"ff78bca7-48a0-4f69-a130-374e67b693e7","block_type":"box","text":"investment is any investment that a Fund reasonably","page_number":382,"box":{"x":117,"y":527,"width":388,"height":12}},{"id":"d2e2a3dd-7b9a-42a2-9047-1595da8fcb7d","block_type":"box","text":"expects cannot be sold or disposed of in current","page_number":382,"box":{"x":505,"y":527,"width":354,"height":11}},{"id":"3a99c530-7795-48fb-859e-2d3f6eb7e921","block_type":"box","text":"market conditions in seven calendar days or less without","page_number":382,"box":{"x":117,"y":542,"width":410,"height":12}},{"id":"bd309e3e-7d17-40ae-9f6a-946f459cc9b5","block_type":"box","text":"t the sale or disposition significantly changing the","page_number":382,"box":{"x":527,"y":542,"width":356,"height":12}},{"id":"b78f09f8-e127-4c66-9efa-6a53accd0303","block_type":"box","text":"market value of the investment. Liquid inves","page_number":382,"box":{"x":117,"y":558,"width":318,"height":12}},{"id":"2fde50dd-7cd6-4fa4-a9fa-1628c0a21ea9","block_type":"box","text":"tments may become illiquid after purchase by a Fund,","page_number":382,"box":{"x":436,"y":558,"width":395,"height":12}},{"id":"82987553-f9d6-4570-a659-af7d912d6c6d","block_type":"box","text":"particularly during periods of market turmoil. There can","page_number":382,"box":{"x":117,"y":573,"width":402,"height":12}},{"id":"d7b7a0f0-70db-4eb2-b684-88181991dd8d","block_type":"box","text":"be no assurance that a security or instrument that","page_number":382,"box":{"x":520,"y":573,"width":365,"height":12}},{"id":"1efbb033-10dc-4a8f-9a77-3f090bb77b29","block_type":"box","text":"is deemed to be liquid when purchased will continue to be liquid for as long as it is held by a Fund, and","page_number":382,"box":{"x":117,"y":589,"width":749,"height":12}},{"id":"6d64c7f8-9102-4efe-90be-996f2e7683eb","block_type":"box","text":"any security or instrument held by the Fund may","page_number":382,"box":{"x":116,"y":604,"width":356,"height":12}},{"id":"bede0653-8d8d-4f12-af05-3805a5fffd32","block_type":"box","text":"be deemed an illiquid investment pursuant to the Fund’s","page_number":382,"box":{"x":473,"y":604,"width":411,"height":12}},{"id":"2d23aa27-47f5-4637-89f1-1a45eacb4d18","block_type":"box","text":"liquidity risk management program. A Fund’s illiquid in","page_number":382,"box":{"x":117,"y":620,"width":391,"height":12}},{"id":"5f709f3e-9eaf-4c9c-946c-98b6d1a4c8dd","block_type":"box","text":"vestments may reduce the returns of the Fund","page_number":382,"box":{"x":509,"y":620,"width":341,"height":12}},{"id":"d91818c8-c6e0-4e11-a6ab-c7b938a14e60","block_type":"box","text":"because it may be difficult to sell the illiquid investment","page_number":382,"box":{"x":117,"y":635,"width":397,"height":12}},{"id":"fddef215-29db-4704-826e-68b086270630","block_type":"box","text":"s at an advantageous time or price. In addition, if a","page_number":382,"box":{"x":514,"y":635,"width":373,"height":12}},{"id":"919cdff6-628f-4624-9498-752aa7bdaf4e","block_type":"box","text":"Fund is limited in its ability to dispose of illiqui","page_number":382,"box":{"x":117,"y":651,"width":327,"height":12}},{"id":"d8b29af7-c70c-4025-8cc3-4ef9d047f0e7","block_type":"box","text":"d investments during periods when shareholders are","page_number":382,"box":{"x":445,"y":651,"width":387,"height":12}},{"id":"5a24a47a-2986-40cd-b594-20e7772f9237","block_type":"box","text":"redeeming or selling their shares or the Fund’s net","page_number":382,"box":{"x":117,"y":666,"width":365,"height":12}},{"id":"a320975a-35af-4bd9-b655-9a24ded4cdf6","block_type":"box","text":"assets otherwise shrink, the Fund will need to dispose","page_number":382,"box":{"x":487,"y":666,"width":393,"height":12}},{"id":"4b224a38-5c23-4cc2-a927-ecb6a4d82273","block_type":"box","text":"of liquid securities to meet redemption requests and","page_number":382,"box":{"x":116,"y":682,"width":376,"height":12}},{"id":"a0493c90-22b0-42d7-91b1-40184776c2f3","block_type":"box","text":"illiquid securities will become a larger portion of the","page_number":382,"box":{"x":498,"y":682,"width":369,"height":12}},{"id":"d36dd27d-fb11-4d5f-9daf-0bf642162859","block_type":"box","text":"Fund’s holdings. If illiquid investments exceed 15% of a","page_number":382,"box":{"x":117,"y":697,"width":401,"height":12}},{"id":"cd6ca49b-db49-45ab-aacd-8d62ca20bf46","block_type":"box","text":"Fund’s net assets, the Liquidity Rule (as defined","page_number":382,"box":{"x":525,"y":697,"width":347,"height":12}},{"id":"1012da8b-e40c-4505-a338-eb917c09e663","block_type":"box","text":"below) and the Liquidity Program (as defined below) will r","page_number":382,"box":{"x":117,"y":713,"width":416,"height":12}},{"id":"8c29a7d6-d999-406f-9c08-f855a6b6aa53","block_type":"box","text":"equire that certain remedial actions be taken.","page_number":382,"box":{"x":533,"y":713,"width":326,"height":12}},{"id":"2c09dc4a-f306-4d70-8d84-36f17e97885c","block_type":"box","text":"Illiquid investments may trade at a discount from com","page_number":382,"box":{"x":117,"y":728,"width":386,"height":12}},{"id":"c4c2b051-045e-429e-9be2-f1b7dd28bc3f","block_type":"box","text":"parable liquid investments. Investment of a Fund’s","page_number":382,"box":{"x":505,"y":728,"width":364,"height":12}},{"id":"81594a64-e8b8-4b6e-a221-06c58d06d242","block_type":"box","text":"assets in illiquid investments may restrict the ability of","page_number":382,"box":{"x":116,"y":744,"width":389,"height":12}},{"id":"73ef0f0f-b6e0-4e60-afc4-17651a74605c","block_type":"box","text":"the Fund to dispose of its investments in a timely","page_number":382,"box":{"x":509,"y":744,"width":355,"height":12}},{"id":"a7972fea-67d2-43f7-bb92-94a827374c73","block_type":"box","text":"fashion and for a fair price as well as its ability to take advantage of market opportunities. The risks","page_number":382,"box":{"x":116,"y":759,"width":716,"height":12}},{"id":"2959b690-77e1-4c28-90c0-bd59d6e840e0","block_type":"box","text":"associated with illiquidity will be particularly acute w","page_number":382,"box":{"x":116,"y":775,"width":373,"height":12}},{"id":"d606fb3d-0ed6-4439-a59a-e63f29d372c9","block_type":"box","text":"here a Fund’s operations require cash, such as when","page_number":382,"box":{"x":491,"y":775,"width":385,"height":12}},{"id":"2dfe8dad-1e2c-433f-9d17-9103b4a413da","block_type":"box","text":"the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet short-term","page_number":382,"box":{"x":116,"y":790,"width":748,"height":12}},{"id":"94f627e9-072c-4e59-83bf-ed3651708b1a","block_type":"box","text":"cash requirements or incurring capital lo","page_number":382,"box":{"x":116,"y":806,"width":291,"height":12}},{"id":"6641339c-42df-486c-b50f-93b466b8dc8b","block_type":"box","text":"sses on the sale of illiquid investments.","page_number":382,"box":{"x":408,"y":806,"width":282,"height":12}},{"id":"d74c5e87-e189-4c5d-9b6f-b6053d4ff945","block_type":"box","text":"Index Funds.","page_number":382,"box":{"x":116,"y":838,"width":108,"height":10}},{"id":"1ac31232-488a-4617-abd1-0a4a91826187","block_type":"box","text":"Cash Flows; Expenses.","page_number":382,"box":{"x":117,"y":862,"width":173,"height":12}},{"id":"d60934cf-4c30-4d8b-aed6-90dccf78418c","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some","page_number":382,"box":{"x":291,"y":862,"width":573,"height":12}},{"id":"8b4922ce-a382-4a90-9059-e714fc2d8a0b","block_type":"box","text":"extent on the Manager’s ability to manage cash flow (primarily from purchases and redemptions and","page_number":382,"box":{"x":116,"y":877,"width":749,"height":12}},{"id":"96b56a96-56e2-44de-aaf5-2975d3097f6a","block_type":"box","text":"II-43","page_number":382,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6d089e57-585d-4258-9744-99a596df29eb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":382,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fc010711-acda-434e-ae46-b13ca5352db5","block_type":"box","text":"distributions from the Fund’s investments). The Manager will make investment changes to a Fund’s","page_number":383,"box":{"x":116,"y":87,"width":742,"height":12}},{"id":"9a4449f1-c8ac-47ea-889c-86652617ed44","block_type":"box","text":"portfolio to accommodate cash flow while continuing to seek to replicate the total return of the Fund’s","page_number":383,"box":{"x":117,"y":102,"width":753,"height":13}},{"id":"42b36d30-8c74-4965-af64-96282d97c129","block_type":"box","text":"target index. Investors should also be aware that the investment performance of each index is a","page_number":383,"box":{"x":116,"y":118,"width":716,"height":12}},{"id":"edc0c083-419b-44cb-b616-ab525adc6c87","block_type":"box","text":"hypothetical number which does not take into account brokerage commissions and other transaction","page_number":383,"box":{"x":117,"y":134,"width":749,"height":12}},{"id":"e2b654f4-836c-4301-b42a-7971f84b06de","block_type":"box","text":"costs, custody and other costs of investing, and any incremental operating costs (e.g., transfer agency","page_number":383,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"390a0f29-577a-4b62-8614-962952e931b0","block_type":"box","text":"and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to replicate the","page_number":383,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"453e9bfb-5b1f-4346-a05e-44aaa1c25bba","block_type":"box","text":"total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":383,"box":{"x":116,"y":180,"width":706,"height":12}},{"id":"642d16e7-4d8f-4b8f-b476-a45a566750aa","block_type":"box","text":"particular security as an investment.","page_number":383,"box":{"x":117,"y":196,"width":272,"height":12}},{"id":"6a8d82ef-5f24-41f1-8032-4a7fe622c97c","block_type":"box","text":"Tracking Error Risk","page_number":383,"box":{"x":118,"y":227,"width":143,"height":12}},{"id":"d0332b82-e0a0-46ff-9596-5d49e16c583f","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s","page_number":383,"box":{"x":261,"y":227,"width":594,"height":12}},{"id":"ab681e6e-42dc-4c39-b9f8-20b0c63b78fa","block_type":"box","text":"performance from that of the Underlying Index. Tracking error may occur because of differences","page_number":383,"box":{"x":117,"y":242,"width":718,"height":12}},{"id":"f13da65b-6e93-4948-8574-26b4d89229ef","block_type":"box","text":"between the securities and other instruments held in the Fund’s portfolio and those included in the","page_number":383,"box":{"x":117,"y":258,"width":732,"height":11}},{"id":"56092d8b-7640-4275-9a4c-47740de8d263","block_type":"box","text":"Underlying Index, pricing differences (including, as applicable, differences between a security’s price at","page_number":383,"box":{"x":117,"y":273,"width":768,"height":12}},{"id":"18314d65-ab4a-4183-9e19-733ff66c1227","block_type":"box","text":"the local market close and the Fund’s valuation of a security at the time of calculation of the Fund’s net","page_number":383,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"a892e6bf-a7ad-4a02-b8cf-d249e5e85754","block_type":"box","text":"asset value), differences in transaction costs incurred by the Fund, the Fund’s holding of uninvested","page_number":383,"box":{"x":116,"y":304,"width":746,"height":12}},{"id":"898a6138-edde-4e95-a42e-34d24ab91d5a","block_type":"box","text":"cash, differences in timing of the accrual of or the valuation of dividends or other distributions, interest,","page_number":383,"box":{"x":116,"y":320,"width":764,"height":12}},{"id":"c8954f05-9d03-493c-9b41-b8529612b4ab","block_type":"box","text":"the requirements to maintain pass-through tax treatment, portfolio transactions carried out to minimize","page_number":383,"box":{"x":116,"y":335,"width":763,"height":12}},{"id":"4f56beda-393f-4803-ae28-b1bad029120f","block_type":"box","text":"the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the","page_number":383,"box":{"x":116,"y":351,"width":741,"height":12}},{"id":"749e03a1-e368-4b56-b866-3cccb7baf359","block_type":"box","text":"Fund of complying with various new or existing regulatory requirements. These risks may be","page_number":383,"box":{"x":117,"y":366,"width":689,"height":12}},{"id":"40bb06c0-1910-4651-83c5-dd89473ab58a","block_type":"box","text":"heightened during times of increased market volatility or other unusual market conditions. 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Without limiting any of","page_number":385,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"5ac24463-19d7-4666-aa5a-d8cb65a1cfe6","block_type":"box","text":"the foregoing, in no event shall MSCI have any liability for any direct, indirect, special, punitive,","page_number":385,"box":{"x":116,"y":211,"width":708,"height":12}},{"id":"9a8c4e36-1364-4355-9a81-993cd437b5d4","block_type":"box","text":"consequential or any other damages (including lost profits) even if notified of the possibility of such","page_number":385,"box":{"x":116,"y":227,"width":737,"height":12}},{"id":"f9abaafb-b1f1-40bf-9f08-058ec80912ef","block_type":"box","text":"damages.","page_number":385,"box":{"x":116,"y":242,"width":78,"height":12}},{"id":"c51ddba8-db09-4fc6-aded-baf08c77d7e7","block_type":"box","text":"Financial Times Stock Exchange (“FTSE”) Indexes.","page_number":385,"box":{"x":116,"y":273,"width":380,"height":12}},{"id":"5324b22a-a1fe-46c2-ab6a-af06c45b083f","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by,","page_number":385,"box":{"x":498,"y":273,"width":376,"height":12}},{"id":"1f6ead65-d8d8-4597-8228-f024af5e9b50","block_type":"box","text":"nor in any way affiliated with FTSE. 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FTSE has no obligation to take the needs of any particular Fund or its","page_number":385,"box":{"x":116,"y":366,"width":694,"height":12}},{"id":"ee35a8b9-2740-4ce5-b032-e032cc7592a4","block_type":"box","text":"participants or any other product or person into consideration in determining, composing or calculating","page_number":385,"box":{"x":117,"y":382,"width":762,"height":12}},{"id":"a2cc0ec7-d952-4bde-9d65-aea6789c1aba","block_type":"box","text":"the FTSE Index.","page_number":385,"box":{"x":116,"y":397,"width":126,"height":10}},{"id":"0e41d9a0-cc54-4b70-bff9-caf5e1d69ab0","block_type":"box","text":"Bloomberg Indexes.","page_number":385,"box":{"x":116,"y":428,"width":148,"height":12}},{"id":"cf345cee-e2fb-4374-b5b4-ae63b49a726c","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with","page_number":385,"box":{"x":265,"y":428,"width":592,"height":12}},{"id":"409067ed-592a-4d05-9759-288386e1d569","block_type":"box","text":"Bloomberg Finance L.P. and its affiliates (collectively, “Bloomberg”). Bloomberg is not responsible for","page_number":385,"box":{"x":117,"y":444,"width":754,"height":12}},{"id":"18dfd86d-0358-4f5e-a5d8-d0f7323b8025","block_type":"box","text":"nor has it reviewed any Fund nor any associated literature or publications, and Bloomberg makes no","page_number":385,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"91d583cf-c95e-4f75-9afe-c88004f1b020","block_type":"box","text":"representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.","page_number":385,"box":{"x":117,"y":475,"width":740,"height":12}},{"id":"03d79555-a8b5-4276-91a4-27e7ce27803a","block_type":"box","text":"Bloomberg reserves the right, at any time and without notice, to alter, amend, terminate or in any way","page_number":385,"box":{"x":117,"y":506,"width":757,"height":12}},{"id":"46cbb876-a19f-4f43-ba7d-639d25cc4bfa","block_type":"box","text":"change a Bloomberg Index. 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BofA is not the issuer or producer of the ICE BofA Indices, and its name is a","page_number":385,"box":{"x":117,"y":614,"width":728,"height":12}},{"id":"6cc4cc3e-706f-4277-87c4-173e25738fde","block_type":"box","text":"trademark and service mark of its owner used under license. Neither ICE nor BofA is responsible for or","page_number":385,"box":{"x":116,"y":630,"width":768,"height":12}},{"id":"c6dd8787-c182-41ef-b8ed-bf3884040196","block_type":"box","text":"has reviewed any Fund nor any associated literature or publications and ICE and BofA make no","page_number":385,"box":{"x":117,"y":645,"width":715,"height":12}},{"id":"b675329b-b344-4296-93f2-319187a2c062","block_type":"box","text":"representation or warranty, express or implied, as to their accuracy, or completeness, or otherwise.","page_number":385,"box":{"x":117,"y":661,"width":734,"height":12}},{"id":"7e749602-de06-49f2-83a1-593f10e2b161","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change","page_number":385,"box":{"x":117,"y":692,"width":758,"height":12}},{"id":"7abff1bd-d6a9-4284-bc38-30c649e77087","block_type":"box","text":"an ICE BofA Index. 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To the extent a Fund invests in these types of","page_number":385,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"608b36a7-5483-47d3-97d1-8dce7ef4a209","block_type":"box","text":"securities, the Fund’s return on such securities will be subject to risk with respect to the value of the","page_number":385,"box":{"x":116,"y":831,"width":744,"height":12}},{"id":"490e4d22-8eca-414c-a654-c5866a366c06","block_type":"box","text":"particular index: that is, if the value of the index falls, the value of the indexed securities owned by the","page_number":385,"box":{"x":117,"y":847,"width":758,"height":12}},{"id":"2d787d40-d613-48d7-8500-a1e17de270d5","block_type":"box","text":"Fund will fall. Interest and principal payable on certain securities may also be based on relative","page_number":385,"box":{"x":117,"y":862,"width":708,"height":12}},{"id":"39c50ba4-6b47-49ab-9836-e0b9013000cf","block_type":"box","text":"changes among particular indices. 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As a result, the market","page_number":386,"box":{"x":116,"y":196,"width":757,"height":12}},{"id":"d61b4a29-9c72-4d66-8541-20a77265864b","block_type":"box","text":"values of such securities will generally be more volatile than the market values of fixed-rate securities.","page_number":386,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"3bb5789e-98f2-4879-9739-8ad3130a1c0c","block_type":"box","text":"To seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that","page_number":386,"box":{"x":116,"y":227,"width":758,"height":12}},{"id":"33f3c970-760f-4ead-bc56-552b71fbcca0","block_type":"box","text":"have shorter-term maturities or that contain limitations on the extent to which the interest rate may","page_number":386,"box":{"x":117,"y":242,"width":732,"height":12}},{"id":"26c4edca-6b9b-48f1-833a-2a762ac8b85b","block_type":"box","text":"vary. Certain investments in such obligations may be illiquid. The Manager believes that indexed and","page_number":386,"box":{"x":116,"y":258,"width":754,"height":12}},{"id":"06c65f8f-076b-4001-9c6b-5e9099c821e8","block_type":"box","text":"inverse floating obligations represent flexible portfolio management instruments for a Fund that allow","page_number":386,"box":{"x":117,"y":273,"width":751,"height":12}},{"id":"47399f47-a2a6-4309-8733-c361e1191bb4","block_type":"box","text":"the Fund to seek potential investment rewards, hedge other portfolio positions or vary the degree of","page_number":386,"box":{"x":116,"y":289,"width":744,"height":12}},{"id":"44b684d0-0e02-4dad-946f-c9e7bc95a401","block_type":"box","text":"investment leverage relatively efficiently under different market conditions. A Fund may invest in","page_number":386,"box":{"x":117,"y":304,"width":716,"height":12}},{"id":"d07175e0-739f-4f5a-81f2-2df2c3b6c8de","block_type":"box","text":"indexed and inverse securities for hedging purposes or to seek to increase returns. 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Furthermore, where such a","page_number":386,"box":{"x":117,"y":335,"width":755,"height":12}},{"id":"de8af3fd-81c4-4100-9ac0-b96a74627b2f","block_type":"box","text":"security includes a contingent liability, in the event of an adverse movement in the underlying index or","page_number":386,"box":{"x":116,"y":351,"width":759,"height":12}},{"id":"6fc216f6-7d3b-4608-80e1-bb868638f93e","block_type":"box","text":"interest rate, a Fund may be required to pay substantial additional margin to maintain the position.","page_number":386,"box":{"x":117,"y":366,"width":731,"height":12}},{"id":"137b2a7b-4e50-4769-87cf-660b315bdd1a","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt","page_number":386,"box":{"x":116,"y":397,"width":682,"height":12}},{"id":"f56242a2-e0c1-47fe-8641-59d9fa18ffb9","block_type":"box","text":"instruments (“inverse floaters”). Inverse floaters are securities the potential of which is inversely related","page_number":386,"box":{"x":117,"y":413,"width":768,"height":12}},{"id":"3fc08453-0ef8-4b83-b394-3a023a8c08b1","block_type":"box","text":"to changes in interest rates. In general, the return on inverse floaters will decrease when short-term","page_number":386,"box":{"x":116,"y":428,"width":743,"height":12}},{"id":"88e44479-389b-43be-a2a5-d6cf31b3fb9b","block_type":"box","text":"interest rates increase and increase when short-term rates decrease. Municipal tender option bonds,","page_number":386,"box":{"x":117,"y":444,"width":751,"height":12}},{"id":"0c0ca630-1bff-4483-b5b9-19a1fd12cf74","block_type":"box","text":"both taxable and tax-exempt, which may include inverse floating rate debt instruments, (including","page_number":386,"box":{"x":117,"y":459,"width":725,"height":12}},{"id":"97cb6ab4-b01b-40f4-8138-04a10d6dfe7f","block_type":"box","text":"residual interests thereon) are excluded from this 10% limitation.","page_number":386,"box":{"x":117,"y":475,"width":483,"height":12}},{"id":"b75a81dd-4687-43a0-ab47-d983e19d7b67","block_type":"box","text":"Inflation Risk.","page_number":386,"box":{"x":116,"y":506,"width":109,"height":9}},{"id":"04695011-ed34-450e-8299-908ef5b0ee2e","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the","page_number":386,"box":{"x":226,"y":506,"width":627,"height":12}},{"id":"f95d62e0-8376-445f-af09-7695edde499f","block_type":"box","text":"present value of assets or income from investments will be less in the future as inflation decreases the","page_number":386,"box":{"x":117,"y":521,"width":763,"height":12}},{"id":"e29d8235-fb2a-4535-abb7-a24d04cd9134","block_type":"box","text":"value of money. As inflation increases, the present value of a Fund’s assets can decline as can the","page_number":386,"box":{"x":116,"y":537,"width":739,"height":12}},{"id":"4cc54c60-e363-4ce5-b9ce-b59245a8c20b","block_type":"box","text":"value of a Fund’s distributions. Inflation rates may change frequently and significantly due to a number","page_number":386,"box":{"x":116,"y":552,"width":764,"height":12}},{"id":"7f367654-120e-48c2-ad0f-c230011464a6","block_type":"box","text":"of potential factors, including, among others, unexpected economic shifts or changes in fiscal or","page_number":386,"box":{"x":116,"y":568,"width":716,"height":12}},{"id":"0189a155-f879-401a-8409-423f51b0b0bd","block_type":"box","text":"monetary policies.","page_number":386,"box":{"x":117,"y":583,"width":139,"height":12}},{"id":"c69c93a1-27be-445a-94fc-9bd53a8e187f","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":386,"box":{"x":116,"y":614,"width":275,"height":12}},{"id":"5fac534e-b16d-4cc5-8284-967a5a923782","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued","page_number":386,"box":{"x":392,"y":614,"width":462,"height":12}},{"id":"db1a0db0-5ff2-43bd-857e-1cb2d630e1e9","block_type":"box","text":"stocks trade in the secondary market are affected by the performance of the stock market overall. If","page_number":386,"box":{"x":116,"y":630,"width":743,"height":12}},{"id":"01983acd-3079-4764-9b96-b14182edc059","block_type":"box","text":"IPOs are brought to the market, availability may be limited and a Fund may not be able to buy any","page_number":386,"box":{"x":117,"y":645,"width":732,"height":12}},{"id":"8b667303-cde7-4ee1-b18a-3ced5e7cd51a","block_type":"box","text":"shares at the offering price, or if it is able to buy shares, it may not be able to buy as many shares at","page_number":386,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"06d44190-4350-4c49-939b-6422cd249884","block_type":"box","text":"the offering price as it would like. In addition, the prices of securities involved in IPOs are often subject","page_number":386,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"1b4323f0-70a7-4b59-9f85-d42751b51d9c","block_type":"box","text":"to greater and more unpredictable price changes than more established stocks. IPOs have the","page_number":386,"box":{"x":116,"y":692,"width":701,"height":12}},{"id":"2b06adcf-3961-4641-93b5-3812536cb98c","block_type":"box","text":"potential to produce substantial gains. A Fund may hold shares from an IPO for only a short period of","page_number":386,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"b4e2367f-56df-4bde-be7e-f0a9091ea585","block_type":"box","text":"time given possible price volatility. This may result in increased portfolio turnover and expenses, such","page_number":386,"box":{"x":116,"y":723,"width":752,"height":12}},{"id":"be55d9fe-077f-4689-a585-43b1b3970bd2","block_type":"box","text":"as commissions and transaction costs, and potentially result in taxable gains that the Fund will","page_number":386,"box":{"x":116,"y":738,"width":699,"height":12}},{"id":"1def71f3-3979-4b14-ad83-e5e08e6000f8","block_type":"box","text":"subsequently distribute to shareholders. There is no assurance that any Fund will have access to","page_number":386,"box":{"x":116,"y":754,"width":720,"height":12}},{"id":"d43662b8-a0f9-4757-8375-e59e12cc62ca","block_type":"box","text":"profitable IPOs and therefore investors should not rely on any past gains from IPOs as an indication of","page_number":386,"box":{"x":117,"y":769,"width":759,"height":12}},{"id":"e0cb0477-013f-4cdc-82a1-39c0c83e0b0f","block_type":"box","text":"future performance. The investment performance of a Fund during periods when it is unable to invest","page_number":386,"box":{"x":116,"y":785,"width":750,"height":12}},{"id":"b9637532-0907-4beb-91fe-d2bc4738ad62","block_type":"box","text":"significantly or at all in IPOs may be lower than during periods when it is able to do so. In addition, as a","page_number":386,"box":{"x":116,"y":800,"width":763,"height":12}},{"id":"aac8e27f-65b1-4084-98ed-87ab3c6cfcee","block_type":"box","text":"Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":386,"box":{"x":117,"y":816,"width":716,"height":12}},{"id":"06a209b9-6618-43ff-b01c-e6c47682a58d","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market","page_number":386,"box":{"x":117,"y":831,"width":743,"height":12}},{"id":"cee97576-6c3f-438d-b1e8-ac5817b10946","block_type":"box","text":"capitalizations. Securities issued in IPOs have no trading history, and information about the companies","page_number":386,"box":{"x":116,"y":847,"width":768,"height":12}},{"id":"a38630db-a369-4d3a-aaf7-cd30ef616a4e","block_type":"box","text":"may be available for very limited periods.","page_number":386,"box":{"x":117,"y":862,"width":308,"height":12}},{"id":"ecc5c986-48b3-47f7-a3ad-ef1c7e71353a","block_type":"box","text":"II-47","page_number":386,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"12cd2e36-8b31-4b05-9024-750663f94862","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":386,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ce608311-4bc1-42fc-8449-28052af78260","block_type":"box","text":"Investment in Emerging Markets.","page_number":387,"box":{"x":116,"y":87,"width":268,"height":12}},{"id":"140b5cb7-b6d4-49ce-9d6a-0f63012ef509","block_type":"box","text":"General.","page_number":387,"box":{"x":117,"y":109,"width":68,"height":9}},{"id":"8d59e662-d502-46ab-9d3e-c16b39b172fc","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging","page_number":387,"box":{"x":117,"y":130,"width":727,"height":13}},{"id":"468d7333-afdc-4a3c-9397-8e3f0cdf1a79","block_type":"box","text":"capital markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital","page_number":387,"box":{"x":116,"y":146,"width":765,"height":12}},{"id":"14fc9d26-66c7-4256-ac36-12e1236bfadd","block_type":"box","text":"market is any country that is (i) generally recognized to be an emerging market country by the","page_number":387,"box":{"x":117,"y":161,"width":700,"height":13}},{"id":"f7e12f86-d143-4f7b-ad88-cde6cff69805","block_type":"box","text":"international financial community, such as the International Finance Corporation, or","page_number":387,"box":{"x":117,"y":177,"width":617,"height":12}},{"id":"5f512c37-7476-4ed6-ab32-b74d2dbfe55f","block_type":"box","text":"determined by the","page_number":387,"box":{"x":739,"y":177,"width":139,"height":12}},{"id":"8060f2eb-b979-490b-ab0f-59cb1466cd83","block_type":"box","text":"World Bank to have a low, middle or middle upper income economy; (ii) classified by the United","page_number":387,"box":{"x":116,"y":192,"width":714,"height":13}},{"id":"564f011b-84bf-484e-a623-467d3acf5a30","block_type":"box","text":"Nations or its authorities to be developing; and/or (iii) included in a broad-based index that is generally","page_number":387,"box":{"x":117,"y":208,"width":762,"height":12}},{"id":"b4b1d106-4dff-49cc-9003-ba9148e58043","block_type":"box","text":"representative of emerging markets. Countries with emerging markets can be found in regions such as","page_number":387,"box":{"x":117,"y":223,"width":766,"height":13}},{"id":"2781af37-f445-42dd-8ea0-d961a5764baa","block_type":"box","text":"Asia, Latin America, Eastern Europe and Africa.","page_number":387,"box":{"x":116,"y":239,"width":361,"height":12}},{"id":"73174754-7ba0-4881-bed2-5c3323d6f6f5","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve","page_number":387,"box":{"x":117,"y":267,"width":743,"height":12}},{"id":"4d84c5d2-29dd-401d-ad4f-59772ea8b4ac","block_type":"box","text":"certain additional risks that do not generally apply to investments in securities of issuers in more","page_number":387,"box":{"x":116,"y":282,"width":717,"height":12}},{"id":"8efac051-476b-4cb9-8b87-f274a509f915","block_type":"box","text":"developed capital markets, such as (i) low or non-existent trading volume, resulting in market illiquidity","page_number":387,"box":{"x":116,"y":298,"width":763,"height":12}},{"id":"e703d4ac-8694-4446-8291-5b7e514f666e","block_type":"box","text":"and increased volatility in prices for such securities, as compared to securities of comparable issuers in","page_number":387,"box":{"x":116,"y":313,"width":771,"height":12}},{"id":"31f9836f-2bae-49b4-bb18-834ea441194c","block_type":"box","text":"more developed capital markets; (ii) uncertain national policies and social, political and economic","page_number":387,"box":{"x":117,"y":329,"width":723,"height":12}},{"id":"8e0f9b14-4b65-46b5-b805-15263da65498","block_type":"box","text":"instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of","page_number":387,"box":{"x":117,"y":344,"width":718,"height":12}},{"id":"5898e574-1009-48e9-9576-a195f68a5705","block_type":"box","text":"inflation or unfavorable diplomatic developments; (iii) possible fluctuations in exchange rates, differing","page_number":387,"box":{"x":117,"y":360,"width":758,"height":12}},{"id":"eadeab60-e620-4620-8c7c-4a9ad4ecd590","block_type":"box","text":"legal systems and the existence or possible imposition of exchange controls, custodial restrictions or","page_number":387,"box":{"x":117,"y":375,"width":750,"height":12}},{"id":"5335097d-ba86-4d82-948a-72fd5a732677","block_type":"box","text":"other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":387,"box":{"x":116,"y":391,"width":741,"height":12}},{"id":"ea22be39-c31a-4633-bb60-322a15927d9a","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers","page_number":387,"box":{"x":117,"y":407,"width":754,"height":11}},{"id":"f84a0222-2fee-454d-ae63-0786e97aec12","block_type":"box","text":"or industries deemed sensitive to national interests; and (v) the lack or relatively early development of","page_number":387,"box":{"x":116,"y":422,"width":759,"height":12}},{"id":"c1771f40-9a95-433e-b61e-0f975f7bcc96","block_type":"box","text":"legal structures governing private and foreign investments and private property. In addition to","page_number":387,"box":{"x":117,"y":437,"width":695,"height":12}},{"id":"bdc43b34-09ab-40d7-bb2c-273adc73d89f","block_type":"box","text":"withholding taxes on investment income, some countries with emerging markets may impose","page_number":387,"box":{"x":116,"y":453,"width":695,"height":12}},{"id":"8479ae2a-8e43-458a-a480-ca0a65502a9b","block_type":"box","text":"differential capital gains taxes on foreign investors.","page_number":387,"box":{"x":116,"y":468,"width":381,"height":12}},{"id":"4f05d6fd-9c70-4986-b10a-ed1479e124fb","block_type":"box","text":"Political and economic structures in emerging mark","page_number":387,"box":{"x":117,"y":496,"width":371,"height":12}},{"id":"de808f5f-212f-43ea-ac4a-b90ddd24e24f","block_type":"box","text":"et countries may be undergoing significant evolution","page_number":387,"box":{"x":489,"y":496,"width":382,"height":12}},{"id":"7327714f-e753-47e4-ad56-01bed5217b55","block_type":"box","text":"and rapid development, and these countries may la","page_number":387,"box":{"x":116,"y":512,"width":373,"height":12}},{"id":"12f1b904-595c-4e7e-8dab-a3611d622dd3","block_type":"box","text":"ck the social, political and economic stability","page_number":387,"box":{"x":490,"y":512,"width":324,"height":12}},{"id":"c43bd649-66a8-44e6-9631-c171a0086f1e","block_type":"box","text":"characteristic of more developed countries. In such a dynamic environment, there can be no assurance","page_number":387,"box":{"x":116,"y":527,"width":755,"height":12}},{"id":"acf1560d-bcfb-49ec-8d85-307d06ead320","block_type":"box","text":"that any or all of these capital markets will continue","page_number":387,"box":{"x":116,"y":543,"width":375,"height":12}},{"id":"b96ab9a1-a7fb-4fbd-9ce9-689ba685f443","block_type":"box","text":"to present viable investment opportunities for a Fund.","page_number":387,"box":{"x":491,"y":543,"width":392,"height":12}},{"id":"6c4cd97a-767a-45c1-9e18-c1abd44249cf","block_type":"box","text":"In the past, governments of such nations have expr","page_number":387,"box":{"x":117,"y":558,"width":373,"height":12}},{"id":"b053f71f-fa15-4f73-8099-32b329b764ba","block_type":"box","text":"opriated substantial amount","page_number":387,"box":{"x":490,"y":558,"width":201,"height":12}},{"id":"53b9bed5-20f4-43e0-9853-59e83bf0558a","block_type":"box","text":"s of private property, and","page_number":387,"box":{"x":692,"y":558,"width":186,"height":12}},{"id":"b5b7b742-4f25-44c0-bf95-f2a84e4cfaeb","block_type":"box","text":"most claims of the property owners have never been f","page_number":387,"box":{"x":117,"y":574,"width":386,"height":12}},{"id":"cf816741-887e-4f76-85ca-fc88b90a9de5","block_type":"box","text":"fully settled. There is no assurance that such","page_number":387,"box":{"x":503,"y":574,"width":330,"height":12}},{"id":"91982376-0c4b-466a-a8df-512f94505cc3","block_type":"box","text":"expropriations will not reoccur. In such an event, it is","page_number":387,"box":{"x":116,"y":589,"width":380,"height":12}},{"id":"b9e80cec-b368-4235-9d4d-38c817838fca","block_type":"box","text":"possible that a Fund could lose the entire value of","page_number":387,"box":{"x":496,"y":589,"width":372,"height":12}},{"id":"56ef823c-30b3-4216-acf2-e413588c7cac","block_type":"box","text":"its investments in the affected market. As a re","page_number":387,"box":{"x":117,"y":605,"width":331,"height":9}},{"id":"eb3bc13a-3545-4a29-9eab-df937ae68ee0","block_type":"box","text":"sult the risks described above, including the risks of","page_number":387,"box":{"x":449,"y":605,"width":379,"height":12}},{"id":"5856b92d-b94b-4c1c-813d-4f953194518e","block_type":"box","text":"nationalization or expropriation of assets, may be hei","page_number":387,"box":{"x":117,"y":620,"width":382,"height":12}},{"id":"bbcf81e4-661f-4e43-9721-e89ac4526943","block_type":"box","text":"ghtened. In addition, unanticipated political or social","page_number":387,"box":{"x":500,"y":620,"width":380,"height":12}},{"id":"de2f6726-3a83-49b3-9486-694ed3a72915","block_type":"box","text":"developments may affect the value of investments in","page_number":387,"box":{"x":116,"y":636,"width":381,"height":12}},{"id":"0c74a715-ee04-4b46-87fc-15c81db7b4b6","block_type":"box","text":"these countries and the availability to a Fund of","page_number":387,"box":{"x":498,"y":636,"width":353,"height":12}},{"id":"584bcfb4-0263-4278-8b50-e2c85a24ff1d","block_type":"box","text":"additional investments. The small size and inexperience","page_number":387,"box":{"x":116,"y":651,"width":411,"height":12}},{"id":"2aed79e5-f6a1-4054-a0b1-cc4a565e3a69","block_type":"box","text":"of the securities markets in certain of these","page_number":387,"box":{"x":528,"y":651,"width":316,"height":10}},{"id":"e5a6db50-2d97-4585-aa6f-b3575b4f0d05","block_type":"box","text":"countries and the limited volume of trading in securities","page_number":387,"box":{"x":116,"y":667,"width":399,"height":12}},{"id":"5c1b6a6f-64db-49cb-8e04-55d58b78a196","block_type":"box","text":"in these countries may make investments in the","page_number":387,"box":{"x":522,"y":667,"width":345,"height":12}},{"id":"5951d879-7bf2-41a9-ae45-c66038030099","block_type":"box","text":"countries illiquid and more volatile than investments in more established markets.","page_number":387,"box":{"x":116,"y":682,"width":589,"height":12}},{"id":"98bc4e1f-9617-4248-8b56-e6423ddff1a5","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be","page_number":387,"box":{"x":116,"y":710,"width":765,"height":12}},{"id":"bed4f8a6-7738-441e-bb3c-5ccf71fd81e0","block_type":"box","text":"available about issuers in more developed capital markets, and such issuers may not be subject to","page_number":387,"box":{"x":116,"y":726,"width":732,"height":12}},{"id":"a017f806-adf6-4033-8fb8-3d6d4508800b","block_type":"box","text":"accounting, auditing and financial reporting standards and requirements comparable to those to which","page_number":387,"box":{"x":116,"y":741,"width":756,"height":12}},{"id":"b2d4591d-2188-483b-9e92-3b9cbe1dd3c4","block_type":"box","text":"U.S. companies are subject. In certain countries with emerging capital markets, reporting standards","page_number":387,"box":{"x":117,"y":757,"width":737,"height":12}},{"id":"0216af19-31ba-49b1-a1dc-0b8138782a4a","block_type":"box","text":"vary widely. As a result, traditional investment measurements used in the United States, such as price/","page_number":387,"box":{"x":116,"y":772,"width":762,"height":12}},{"id":"56b6711e-cdca-470e-bb97-c03c2b9f7c8c","block_type":"box","text":"earnings ratios, may not be applicable. Emerging market securities may be substantially less liquid","page_number":387,"box":{"x":116,"y":788,"width":731,"height":12}},{"id":"4dfd6eee-9f97-4757-8c4e-cda5fa31277d","block_type":"box","text":"than, and more volatile than, those of mature markets, and company shares may be held by a limited","page_number":387,"box":{"x":116,"y":803,"width":749,"height":12}},{"id":"5c2293c6-4740-442e-9740-dda525448629","block_type":"box","text":"number of persons. This may adversely affect the timing and pricing of the Fund’s acquisition or","page_number":387,"box":{"x":117,"y":819,"width":710,"height":12}},{"id":"1be455df-8e66-4447-a8bb-cb8841f14374","block_type":"box","text":"disposal of securities.","page_number":387,"box":{"x":116,"y":834,"width":165,"height":12}},{"id":"8ccdbaad-2b9c-4dea-b3a5-831cacf5480e","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks","page_number":387,"box":{"x":117,"y":862,"width":746,"height":12}},{"id":"a38983d0-41d4-44a5-b991-1ad4467e8eec","block_type":"box","text":"than those in developed markets, in part because a Fund will need to use brokers and counterparties","page_number":387,"box":{"x":116,"y":878,"width":755,"height":12}},{"id":"e66b1bef-70e7-4ffc-9a9f-ea52587984ae","block_type":"box","text":"II-48","page_number":387,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"e43b30ed-7807-4727-b8ad-531c2b8f2eaf","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":387,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"602caedd-b413-45e2-ad1c-f127ad6e1b39","block_type":"box","text":"that are less well capitalized, and custody and registration of assets in some countries may be","page_number":388,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"853ec7b9-20ca-46e7-a91d-bef5aa9b394a","block_type":"box","text":"unreliable. The possibility of fraud, negligence, undue influence being exerted by the issuer or refusal","page_number":388,"box":{"x":117,"y":102,"width":754,"height":13}},{"id":"b2ce59c1-0006-4c33-bee0-00e8d51028f7","block_type":"box","text":"to recognize ownership exists in some emerging markets, and, along with other factors, could result in","page_number":388,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"f0fda71b-6478-4715-bc64-91ca3ef2a4a1","block_type":"box","text":"ownership registration being completely lost. A Fund would absorb any loss resulting from such","page_number":388,"box":{"x":116,"y":134,"width":712,"height":12}},{"id":"f539c017-d13e-47fc-8b87-8e4effd058cc","block_type":"box","text":"registration problems and may have no successful claim for compensation.","page_number":388,"box":{"x":117,"y":149,"width":560,"height":12}},{"id":"f1a244ca-bd4f-430d-a692-c926cbf4e158","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging","page_number":388,"box":{"x":117,"y":180,"width":755,"height":12}},{"id":"6c0c1865-d104-4d96-87cc-23fbf26be91f","block_type":"box","text":"market countries may be on either a currency hedged or unhedged basis, and the Funds may hold","page_number":388,"box":{"x":117,"y":196,"width":735,"height":12}},{"id":"57a55c98-7bd1-4ee1-9124-5a02a7f628d0","block_type":"box","text":"from time to time various foreign currencies pending investment or conversion into U.S. dollars. Some","page_number":388,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"7cf4f0f7-8109-49a3-8f84-2d013647162a","block_type":"box","text":"of these instruments may have the characteristics of futures contracts. In addition, certain Funds may","page_number":388,"box":{"x":116,"y":227,"width":757,"height":12}},{"id":"c700d60f-412c-477b-97d0-579b4b289ab9","block_type":"box","text":"engage in foreign currency exchange transactions to seek to protect against changes in the level of","page_number":388,"box":{"x":116,"y":242,"width":742,"height":12}},{"id":"efda2567-cb5d-4c23-aa6c-92619a50d8a6","block_type":"box","text":"future exchange rates which would adversely affect the Fund’s performance. These investments and","page_number":388,"box":{"x":116,"y":258,"width":752,"height":12}},{"id":"959a189a-1473-4a7b-a537-09f61288074c","block_type":"box","text":"transactions involving foreign securities, currencies, options (including options that relate to foreign","page_number":388,"box":{"x":116,"y":273,"width":738,"height":12}},{"id":"b9f3ea8e-1373-4a01-955a-a7ed01665c5d","block_type":"box","text":"currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":388,"box":{"x":116,"y":289,"width":619,"height":12}},{"id":"205ac74a-dbc3-434a-b3e1-915356955126","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":388,"box":{"x":116,"y":320,"width":328,"height":12}},{"id":"7a297204-83d4-4497-bb86-4d5ab2cb8ffe","block_type":"box","text":"In addition to the risks of foreign investing and the risks of","page_number":388,"box":{"x":445,"y":320,"width":432,"height":12}},{"id":"60c923a2-2d43-41ae-93b4-e8723321b21f","block_type":"box","text":"investing in developing markets, the developing market Asia-Pacific countries in which a Fund may","page_number":388,"box":{"x":117,"y":335,"width":738,"height":12}},{"id":"5c1c8443-d206-4621-b08c-f7aa25cc35f5","block_type":"box","text":"invest are subject to certain additional or specific risks. Certain Funds may make substantial","page_number":388,"box":{"x":117,"y":351,"width":687,"height":12}},{"id":"ac6011d7-83b1-4f7d-bec7-a15f78647f65","block_type":"box","text":"investments in Asia-Pacific countries. In many of these markets, there is a high concentration of market","page_number":388,"box":{"x":117,"y":366,"width":771,"height":12}},{"id":"7e660cd7-5970-40bc-a186-a16daf7d494d","block_type":"box","text":"capitalization and trading volume in a small number of issuers representing a limited number of","page_number":388,"box":{"x":116,"y":382,"width":710,"height":12}},{"id":"35128d7b-7ac6-40b4-a172-8d332a7b55c3","block_type":"box","text":"industries, as well as a high concentration of investors and financial intermediaries. Many of these","page_number":388,"box":{"x":117,"y":397,"width":730,"height":12}},{"id":"6cfd40fa-6620-418c-b9f1-3db2eb30e91d","block_type":"box","text":"markets also may be affected by developments with respect to more established markets in the region","page_number":388,"box":{"x":117,"y":413,"width":763,"height":12}},{"id":"41a2da15-efc9-4563-b212-d2f225f0c618","block_type":"box","text":"such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are","page_number":388,"box":{"x":116,"y":428,"width":739,"height":12}},{"id":"7b9d979b-9343-40d7-aeb4-7a432a20601d","block_type":"box","text":"fewer in number and less well capitalized than brokers in the United States. These factors, combined","page_number":388,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"f0e523af-1c3a-4707-8b7a-c874a93c0cd2","block_type":"box","text":"with the U.S. regulatory requirements for open-end investment companies and the restrictions on","page_number":388,"box":{"x":116,"y":459,"width":725,"height":12}},{"id":"090cf91f-a135-48dc-91d2-e25cfaf1fbe6","block_type":"box","text":"foreign investment discussed below, result in potentially fewer investment opportunities for a Fund and","page_number":388,"box":{"x":116,"y":475,"width":766,"height":12}},{"id":"a4d766e6-beed-4906-bc02-6fedc0b379e8","block_type":"box","text":"may have an adverse impact on the investment performance of the Fund.","page_number":388,"box":{"x":117,"y":490,"width":550,"height":12}},{"id":"951afdb5-6180-4d29-b9dc-0e3205ec31cc","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic,","page_number":388,"box":{"x":117,"y":521,"width":757,"height":12}},{"id":"bf81db91-0160-450e-97b4-55cce26b3250","block_type":"box","text":"political and social instability than is the case in the United States and Western European countries.","page_number":388,"box":{"x":117,"y":537,"width":736,"height":12}},{"id":"9953cb8b-fbad-4d00-9080-a13ab61cbfff","block_type":"box","text":"Such instability may result from, among other things: (i) authoritarian governments or military","page_number":388,"box":{"x":116,"y":552,"width":686,"height":12}},{"id":"aea02065-6f9c-4334-89f2-0c954ea8ac90","block_type":"box","text":"involvement in political and economic decision-making, including changes in government through extra","page_number":388,"box":{"x":117,"y":568,"width":759,"height":12}},{"id":"64ce6d7d-1835-4c03-93ae-f215fe712a29","block_type":"box","text":"constitutional means; (ii) popular unrest associated with demands for improved political, economic and","page_number":388,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"9f8d1e03-f8a2-4c36-86f7-91d460bcc394","block_type":"box","text":"social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and","page_number":388,"box":{"x":116,"y":599,"width":703,"height":12}},{"id":"2987f77f-f010-4258-b960-5f73c08cce0e","block_type":"box","text":"(v) ethnic, religious and racial disaffection. In addition, the governments of many of such countries, such","page_number":388,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"450360e5-b16a-4fa7-b13d-1608cc4efd8c","block_type":"box","text":"as Indonesia, have a substantial role in regulating and supervising the economy. Another risk common","page_number":388,"box":{"x":116,"y":630,"width":758,"height":12}},{"id":"ef6de1b8-43ea-4b9e-b0f5-416bbdf79996","block_type":"box","text":"to most such countries is that the economy is heavily export oriented and, accordingly, is dependent","page_number":388,"box":{"x":116,"y":645,"width":740,"height":12}},{"id":"9cc3b9a5-88bf-4bba-a7a2-fda1ab7affe3","block_type":"box","text":"upon international trade. The existence of overburdened infrastructure and obsolete financial systems","page_number":388,"box":{"x":117,"y":661,"width":745,"height":12}},{"id":"7c1ee052-da06-4836-8bac-70a04976ae22","block_type":"box","text":"also presents risks in certain countries, as do environmental problems. Certain economies also depend","page_number":388,"box":{"x":116,"y":676,"width":757,"height":12}},{"id":"b128b126-b3e8-41db-9e83-98ab309ec55d","block_type":"box","text":"to a significant degree upon exports of primary commodities and, therefore, are vulnerable to changes in","page_number":388,"box":{"x":116,"y":692,"width":766,"height":12}},{"id":"8db5614a-0475-4330-8612-978a7088d336","block_type":"box","text":"commodity prices that, in turn, may be affected by a variety of factors.","page_number":388,"box":{"x":116,"y":707,"width":511,"height":12}},{"id":"bc7f7bc3-1afa-4226-a113-212911f4cbd6","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse","page_number":388,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"e898d36a-7130-436e-a1e7-5f6bc3e62c6b","block_type":"box","text":"impact on the Fund. For example, while the potential liability of a shareholder in a U.S. corporation with","page_number":388,"box":{"x":117,"y":754,"width":763,"height":12}},{"id":"d4cbb114-92a9-48ae-a6fb-cc5b9d46231b","block_type":"box","text":"respect to acts of the corporation is generally limited to the amount of the shareholder’s investment, the","page_number":388,"box":{"x":117,"y":769,"width":766,"height":12}},{"id":"817ac03a-792f-4ba5-b49b-1846e3e7c58d","block_type":"box","text":"notion of limited liability is less clear in certain emerging market Asia-Pacific countries. Similarly, the","page_number":388,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"59b42da6-391e-459b-adcb-5d8406d7fd95","block_type":"box","text":"rights of investors in developing market Asia-Pacific companies may be more limited than those of","page_number":388,"box":{"x":117,"y":800,"width":728,"height":12}},{"id":"e79c24df-190a-4574-9f9b-5093bc12bb26","block_type":"box","text":"shareholders of U.S. corporations. It may be difficult or impossible to obtain and/or enforce a judgment","page_number":388,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"4acf47ed-8ea8-4544-9cca-422d04a082d6","block_type":"box","text":"in a developing market Asia-Pacific country.","page_number":388,"box":{"x":117,"y":831,"width":330,"height":12}},{"id":"ef1b43b1-35fd-4549-976a-dfef1eaf108e","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to","page_number":388,"box":{"x":117,"y":862,"width":714,"height":12}},{"id":"8a2da139-cdff-4637-9a16-4f5ac426cad0","block_type":"box","text":"exercise substantial influence over many aspects of the private sector. In certain cases, the","page_number":388,"box":{"x":116,"y":878,"width":683,"height":12}},{"id":"245a7e14-ba98-469b-8c57-fbf84b32c0b3","block_type":"box","text":"II-49","page_number":388,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b9cb1b9c-e0df-4a1f-b6f2-3db5619e67ad","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":388,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ae419162-c1d7-4c3e-b421-604836d4b5a5","block_type":"box","text":"government owns or controls many companies, including the largest in the country. Accordingly,","page_number":389,"box":{"x":116,"y":87,"width":718,"height":12}},{"id":"11e124cc-0139-4edb-b058-eafff5363691","block_type":"box","text":"government actions in the future could have a significant effect on economic conditions in developing","page_number":389,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"13dee7a4-d6ba-4e5e-85ac-61865021f44a","block_type":"box","text":"market Asia-Pacific countries, which could affect private sector companies and a Fund itself, as well as","page_number":389,"box":{"x":117,"y":118,"width":768,"height":12}},{"id":"9f15e6c5-2666-42c7-938f-fb0ac433f032","block_type":"box","text":"the value of securities in the Fund’s portfolio. In addition, economic statistics of developing market","page_number":389,"box":{"x":116,"y":134,"width":731,"height":12}},{"id":"43cb1f3f-e089-4385-a534-42f129c0d5a6","block_type":"box","text":"Asia-Pacific countries may be less reliable than economic statistics of more developed nations.","page_number":389,"box":{"x":116,"y":149,"width":710,"height":12}},{"id":"15324139-6676-4753-a257-fdd192b8c2e6","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific","page_number":389,"box":{"x":117,"y":180,"width":741,"height":12}},{"id":"920f1bf1-e542-41db-89ac-9da6269f2b65","block_type":"box","text":"issuers and the possibility that such issuers may not be subject to the same accounting, auditing and","page_number":389,"box":{"x":117,"y":196,"width":752,"height":12}},{"id":"3b7de50b-27f6-426e-9f2c-c35d7bf626a5","block_type":"box","text":"financial reporting standards as U.S. companies, inflation accounting rules in some developing market","page_number":389,"box":{"x":116,"y":211,"width":762,"height":12}},{"id":"7cb6273e-33eb-4c26-8f5f-3e4b363331b5","block_type":"box","text":"Asia-Pacific countries require companies that keep accounting records in the local currency, for both","page_number":389,"box":{"x":116,"y":227,"width":750,"height":12}},{"id":"9b36044e-43d2-4a92-a11a-108a473bf2b0","block_type":"box","text":"tax and accounting purposes, to restate certain assets and liabilities on the company’s balance sheet","page_number":389,"box":{"x":116,"y":242,"width":755,"height":12}},{"id":"917ede13-1f64-4e57-a661-5f337bb97cb2","block_type":"box","text":"in order to express items in terms of currency of constant purchasing power. Inflation accounting may","page_number":389,"box":{"x":117,"y":258,"width":756,"height":12}},{"id":"7acea3fa-551a-495d-89b7-669ba312fe36","block_type":"box","text":"indirectly generate losses or profits for certain developing market Asia-Pacific companies.","page_number":389,"box":{"x":117,"y":273,"width":669,"height":12}},{"id":"e124e940-d900-43e0-b8bf-d62fb331cc4d","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia","page_number":389,"box":{"x":116,"y":304,"width":762,"height":12}},{"id":"18b0c422-8ed2-469a-8101-325030a9987f","block_type":"box","text":"Pacific countries, which may result in the Fund incurring additional costs and delays in providing","page_number":389,"box":{"x":117,"y":320,"width":716,"height":12}},{"id":"e54e272a-0df4-457b-b9d3-154c545234be","block_type":"box","text":"transportation and custody services for such securities outside such countries.","page_number":389,"box":{"x":116,"y":335,"width":586,"height":12}},{"id":"25070432-025f-43cb-9fcd-26bdd40c8c2b","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially","page_number":389,"box":{"x":117,"y":366,"width":738,"height":12}},{"id":"d07bb311-e170-4faf-9816-e9a7ebb40365","block_type":"box","text":"large debtors to commercial banks and foreign governments.","page_number":389,"box":{"x":117,"y":382,"width":456,"height":12}},{"id":"980a61cb-b533-4dac-b830-2b26800859cd","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and","page_number":389,"box":{"x":117,"y":413,"width":705,"height":12}},{"id":"e6cb1386-5dda-43cd-825f-070b656e223a","block_type":"box","text":"negative impact on a Fund’s investment portfolio and, in the longer term, could impair the ability of","page_number":389,"box":{"x":117,"y":428,"width":732,"height":12}},{"id":"b98be9f5-5bde-4be9-886f-4412eeb2ed15","block_type":"box","text":"issuers in which the Fund invests to conduct their businesses in the manner normally conducted.","page_number":389,"box":{"x":117,"y":444,"width":722,"height":12}},{"id":"52f0f3b4-86f6-4dd2-a65b-b67d7d0a7f76","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may","page_number":389,"box":{"x":117,"y":475,"width":766,"height":12}},{"id":"060f128f-6802-4ed1-92b2-7193e2322cb4","block_type":"box","text":"not be practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may","page_number":389,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"fe520069-b63f-4cc0-a477-63a2f8f680ce","block_type":"box","text":"invest in countries in which foreign investors, including management of the Fund, have had no or","page_number":389,"box":{"x":117,"y":506,"width":722,"height":12}},{"id":"5322a51b-09e0-4a5d-97b8-d63aed7c9e14","block_type":"box","text":"limited prior experience.","page_number":389,"box":{"x":117,"y":521,"width":182,"height":12}},{"id":"b5715f2d-b20a-4797-83c8-885a342447ae","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":389,"box":{"x":116,"y":552,"width":458,"height":12}},{"id":"77ff9bf0-2539-4274-a556-6608793a1158","block_type":"box","text":"Some developing Asia-Pacific countries","page_number":389,"box":{"x":576,"y":552,"width":305,"height":12}},{"id":"22b349a4-9a76-46c0-b82b-cb9d1cb5dc28","block_type":"box","text":"prohibit or impose substantial restrictions on investments in their capital markets, particularly their","page_number":389,"box":{"x":117,"y":568,"width":728,"height":12}},{"id":"dd1ee806-a51e-4353-b79d-e809c55a50d9","block_type":"box","text":"equity markets, by foreign entities such as a Fund. As illustrations, certain countries may require","page_number":389,"box":{"x":116,"y":583,"width":719,"height":12}},{"id":"91c2702f-29d5-48c4-9d1e-e923ff34365a","block_type":"box","text":"governmental approval prior to investments by foreign persons or limit the amount of investment by","page_number":389,"box":{"x":116,"y":599,"width":741,"height":12}},{"id":"301df482-acb9-4efd-935c-40677c6cc318","block_type":"box","text":"foreign persons in a particular company or limit the investment by foreign persons to only a specific","page_number":389,"box":{"x":116,"y":614,"width":740,"height":12}},{"id":"4f811f5c-25d1-4a65-94cc-c9f3ed7a05d1","block_type":"box","text":"class of securities of a company which may have less advantageous terms (including price and","page_number":389,"box":{"x":116,"y":630,"width":711,"height":12}},{"id":"3d211874-00e3-4bf8-9c26-988bee3119f9","block_type":"box","text":"shareholder rights) than securities of the company available for purchase by nationals. There can be","page_number":389,"box":{"x":116,"y":645,"width":750,"height":12}},{"id":"bf111de1-de1a-4c9f-b0cf-31a56b96fe5d","block_type":"box","text":"no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In","page_number":389,"box":{"x":117,"y":661,"width":762,"height":12}},{"id":"7e5c160c-7342-43e3-b181-22d9d6466aae","block_type":"box","text":"addition, changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of","page_number":389,"box":{"x":116,"y":676,"width":765,"height":12}},{"id":"c60c9ac2-2a1e-40cd-8915-7b9e58e8fe02","block_type":"box","text":"such securities may have an adverse effect on the value of such shares. Certain countries may restrict","page_number":389,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"65a96705-db25-4e09-8384-bb8a07738ca9","block_type":"box","text":"investment opportunities in issuers or industries deemed important to national interests.","page_number":389,"box":{"x":117,"y":707,"width":647,"height":12}},{"id":"76b97d7b-c78b-4401-ba9c-c614cc2152ec","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific","page_number":389,"box":{"x":116,"y":738,"width":724,"height":12}},{"id":"4a37e414-37de-4bee-a882-0a61ae7c01b9","block_type":"box","text":"countries, as well as limitations on such investments, also may have an adverse impact on the","page_number":389,"box":{"x":116,"y":754,"width":700,"height":12}},{"id":"e0fb00dc-e8fb-4e56-86d7-6c92d63e9a45","block_type":"box","text":"operations of a Fund. For example, a Fund may be required in certain of such countries to invest","page_number":389,"box":{"x":116,"y":769,"width":717,"height":12}},{"id":"30ec302d-b3d0-4f83-b1a9-4c71eeae622c","block_type":"box","text":"initially through a local broker or other entity and then have the shares purchased re-registered in the","page_number":389,"box":{"x":117,"y":785,"width":748,"height":12}},{"id":"ba090ab1-3cf3-4386-a25c-9eeea1100d6e","block_type":"box","text":"name of the Fund. Re-registration may in some instances not be able to occur on a timely basis,","page_number":389,"box":{"x":117,"y":800,"width":712,"height":12}},{"id":"8144950d-cdbf-4078-93eb-c56864c72c13","block_type":"box","text":"resulting in a delay during which a Fund may be denied certain of its rights as an investor, including","page_number":389,"box":{"x":117,"y":816,"width":736,"height":12}},{"id":"13ec8ec3-1ad7-44d1-9ee2-a84c64cc2c93","block_type":"box","text":"rights as to dividends or to be made aware of certain corporate actions. There also may be instances","page_number":389,"box":{"x":117,"y":831,"width":753,"height":12}},{"id":"ae949b70-ed46-43d4-abb4-2b686fe49907","block_type":"box","text":"where a Fund places a purchase order but is subsequently informed, at the time of re-registration, that","page_number":389,"box":{"x":116,"y":847,"width":764,"height":12}},{"id":"c667970b-319f-4009-b5ce-17face171915","block_type":"box","text":"the permissible allocation of the investment to foreign investors has been filled, depriving the Fund of","page_number":389,"box":{"x":116,"y":862,"width":754,"height":12}},{"id":"452b282a-f3a7-432b-b5b6-cc2864a29e54","block_type":"box","text":"the ability to make its desired investment at that time.","page_number":389,"box":{"x":116,"y":878,"width":400,"height":12}},{"id":"7ffadf58-9309-4418-9940-164b6649c3cd","block_type":"box","text":"II-50","page_number":389,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"511d4aad-dc82-47fc-9f7a-5e7035c4f595","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":389,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3af5fcc8-090a-474a-b8bc-9a8f38b92e2d","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate","page_number":390,"box":{"x":116,"y":87,"width":714,"height":12}},{"id":"8253d25b-b77a-4523-af0c-11fddacba531","block_type":"box","text":"investment income, capital or the proceeds of sales of securities by foreign investors. A Fund could be","page_number":390,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"b685b1d2-a8b6-47da-9430-217eca6d60b7","block_type":"box","text":"adversely affected by delays in, or a refusal to grant, any required governmental approval for","page_number":390,"box":{"x":116,"y":118,"width":693,"height":12}},{"id":"2e5d1528-7dac-421d-89c1-a193c23a0834","block_type":"box","text":"repatriation of capital, as well as by the application to the Fund of any restrictions on investments. It is","page_number":390,"box":{"x":117,"y":134,"width":759,"height":12}},{"id":"dcc79de8-3e04-4640-967d-36a940f0b38d","block_type":"box","text":"possible that certain countries may impose currency controls or other restrictions relating to their","page_number":390,"box":{"x":117,"y":149,"width":719,"height":12}},{"id":"bf9a0bfc-14ae-43e5-b930-bd5734334621","block_type":"box","text":"currencies or to securities of issuers in those countries. To the extent that such restrictions have the","page_number":390,"box":{"x":116,"y":165,"width":746,"height":9}},{"id":"ed8821d9-ee33-40e2-9a1a-8233486435ed","block_type":"box","text":"effect of making certain investments illiquid, securities may not be available for sale to meet","page_number":390,"box":{"x":116,"y":180,"width":685,"height":12}},{"id":"b4a097be-4872-4bbc-a910-08d34bf9608e","block_type":"box","text":"redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":390,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"1d286917-9af5-4d10-94c5-f1a635ebf2e4","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the","page_number":390,"box":{"x":116,"y":211,"width":763,"height":12}},{"id":"e0be0fd6-83a7-4807-aabc-7f46d79cea07","block_type":"box","text":"Fund’s assets that may be used to meet redemptions may be further decreased. Even where there is","page_number":390,"box":{"x":117,"y":227,"width":754,"height":12}},{"id":"f3d72717-5082-4152-b4e9-842d7911f415","block_type":"box","text":"no outright restriction on repatriation of capital, the mechanics of repatriation may affect certain aspects","page_number":390,"box":{"x":117,"y":242,"width":771,"height":12}},{"id":"db426c29-e993-4b94-a9b5-87c0a6ca5cac","block_type":"box","text":"of the operations of a Fund (for example, if funds may be withdrawn only in certain currencies and/or","page_number":390,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"02b9f71e-a8c8-49a8-9c19-c22fd05c7f3e","block_type":"box","text":"only at an exchange rate established by the government).","page_number":390,"box":{"x":116,"y":273,"width":433,"height":12}},{"id":"d6456a77-020d-4c06-83a1-16cb1864ce78","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have","page_number":390,"box":{"x":117,"y":304,"width":763,"height":12}},{"id":"70e598d1-be36-46ab-bfdd-c80dbbb6d9fe","block_type":"box","text":"actively traded securities available for investment. The Investment Company Act restricts a Fund’s","page_number":390,"box":{"x":116,"y":320,"width":734,"height":12}},{"id":"5b686f65-d715-416a-b1ed-8a329239d23d","block_type":"box","text":"investments in any equity securities of an issuer that, in its most recent fiscal year, derived more than","page_number":390,"box":{"x":117,"y":335,"width":755,"height":12}},{"id":"509afcf3-6eaa-492e-96ff-57547dd1aa24","block_type":"box","text":"15% of its revenues from “securities related activities,” as defined by the rules thereunder. These","page_number":390,"box":{"x":118,"y":351,"width":722,"height":12}},{"id":"0d8255c4-fe27-4792-b04f-0326ffb5f690","block_type":"box","text":"provisions may restrict a Fund’s investments in certain foreign banks and other financial institutions.","page_number":390,"box":{"x":117,"y":366,"width":744,"height":12}},{"id":"a329a042-5b29-4fa2-a4a8-925177f680f8","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant","page_number":390,"box":{"x":117,"y":397,"width":699,"height":12}},{"id":"02304a1c-c9fa-473e-bff7-f0d70929736e","block_type":"box","text":"evolution and rapid development, and these countries may lack the social, political and economic","page_number":390,"box":{"x":116,"y":413,"width":726,"height":12}},{"id":"a7a51ffc-3731-4c62-9ca9-fb434307b7dc","block_type":"box","text":"stability characteristic of more developed countries. Some of these countries may have in the past","page_number":390,"box":{"x":116,"y":428,"width":732,"height":12}},{"id":"669025de-32d8-4646-ba72-549281da7ba2","block_type":"box","text":"failed to recognize private property rights and have at times nationalized or expropriated the assets of","page_number":390,"box":{"x":116,"y":444,"width":759,"height":12}},{"id":"43175c8f-79a3-46b0-8032-15c9f2033231","block_type":"box","text":"private companies. As a result the risks described above, including the risks of nationalization or","page_number":390,"box":{"x":117,"y":459,"width":718,"height":12}},{"id":"2d6fe21c-b7c1-43dd-a5d4-8d91f530b060","block_type":"box","text":"expropriation of assets, may be heightened. In addition, unanticipated political or social developments","page_number":390,"box":{"x":116,"y":475,"width":760,"height":12}},{"id":"b94236a7-63e1-48a4-a534-62e23cfde995","block_type":"box","text":"may affect the value of investments in these countries and the availability to a Fund of additional","page_number":390,"box":{"x":117,"y":490,"width":718,"height":12}},{"id":"18691354-12f5-48c4-a6bc-921e60eb8b42","block_type":"box","text":"investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":390,"box":{"x":117,"y":506,"width":770,"height":12}},{"id":"fa05f769-f5d8-44da-ba6d-c208c12a663d","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make","page_number":390,"box":{"x":116,"y":521,"width":753,"height":12}},{"id":"9112edd1-f87b-4394-bb02-1101fe72f947","block_type":"box","text":"investments in the countries illiquid and more volatile than investments in Japan or most Western","page_number":390,"box":{"x":117,"y":537,"width":725,"height":12}},{"id":"d573765b-4a9a-43c3-8b59-a78484941c72","block_type":"box","text":"European countries. There may be little financial or accounting information available with respect to","page_number":390,"box":{"x":117,"y":552,"width":741,"height":12}},{"id":"7315aa57-2dbe-4b19-99ad-08fdfe1927bf","block_type":"box","text":"issuers located in certain emerging market countries, and it may be difficult to assess the value or","page_number":390,"box":{"x":117,"y":568,"width":729,"height":12}},{"id":"18c1126b-ad3e-422d-9346-41a06fa57fdb","block_type":"box","text":"prospects of an investment in such issuers.","page_number":390,"box":{"x":117,"y":583,"width":325,"height":12}},{"id":"4dfa3096-159c-4614-821d-9c1f82c28715","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be","page_number":390,"box":{"x":116,"y":614,"width":728,"height":12}},{"id":"cd1e83da-2823-4159-b9ad-06e5eac9912a","block_type":"box","text":"higher than those of Funds investing primarily in domestic securities. The costs attributable to investing","page_number":390,"box":{"x":117,"y":630,"width":769,"height":12}},{"id":"51c34050-2870-4cc8-bc5b-78f9b70c9328","block_type":"box","text":"abroad are usually higher for several reasons, such as the higher cost of custody of foreign securities,","page_number":390,"box":{"x":116,"y":645,"width":761,"height":12}},{"id":"4a96567d-0945-47df-8ce8-a9fc7a551f96","block_type":"box","text":"higher commissions paid on comparable transactions on foreign markets and additional costs arising","page_number":390,"box":{"x":117,"y":661,"width":746,"height":12}},{"id":"2960ee72-f96a-44da-a703-0b8fe534975d","block_type":"box","text":"from delays in settlements of transactions involving foreign securities.","page_number":390,"box":{"x":116,"y":676,"width":515,"height":12}},{"id":"7c605938-39b9-4ecb-b320-45ac37deee30","block_type":"box","text":"Risks of Investments in Russia.","page_number":390,"box":{"x":116,"y":707,"width":232,"height":10}},{"id":"cc236387-b748-4ce1-a6bd-ab389da53453","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by","page_number":390,"box":{"x":354,"y":707,"width":473,"height":12}},{"id":"a84132fd-88c1-47d3-b351-10420da8f584","block_type":"box","text":"companies located in Russia. The Russian securities market suffers from a variety of problems","page_number":390,"box":{"x":116,"y":723,"width":704,"height":12}},{"id":"48388d8a-d3ad-4a7c-9bff-b6bd4cbe4a54","block_type":"box","text":"described above in “Investment in Emerging Markets” not encountered in more developed markets.","page_number":390,"box":{"x":116,"y":738,"width":736,"height":12}},{"id":"f1a80db9-ced9-488a-816f-342d1ac2c60f","block_type":"box","text":"The Russian securities market is relatively new, and a substantial portion of securities transactions in","page_number":390,"box":{"x":116,"y":754,"width":749,"height":12}},{"id":"6679d467-b76f-4756-b52c-72e268aa2d77","block_type":"box","text":"Russia are privately negotiated outside of stock exchanges. The inexperience of the Russian securities","page_number":390,"box":{"x":117,"y":769,"width":763,"height":12}},{"id":"080ed30c-5528-45c9-98a8-44fde856b9e0","block_type":"box","text":"market and the limited volume of trading in securities in the market may make obtaining accurate","page_number":390,"box":{"x":117,"y":785,"width":718,"height":12}},{"id":"f8a9a5c1-68d1-4173-b2bf-018d4b0de120","block_type":"box","text":"prices on portfolio securities from independent sources more difficult than in more developed markets.","page_number":390,"box":{"x":117,"y":800,"width":755,"height":12}},{"id":"7f2454d9-bfa6-45ab-a2c6-efb797c1adab","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and","page_number":390,"box":{"x":117,"y":831,"width":639,"height":12}},{"id":"9d2508f0-f216-4bcc-81d1-73f47e3679cf","block_type":"box","text":"telecommunication systems, settlement, clearing and registration of securities transactions are subject","page_number":390,"box":{"x":116,"y":847,"width":764,"height":12}},{"id":"ca33ab0e-2bd6-43ff-997b-0217f89bad7e","block_type":"box","text":"to additional risks. Prior to 2013, there was no central registration system for equity share registration","page_number":390,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"62750883-c4a2-4754-bc60-461140d2a2aa","block_type":"box","text":"in Russia and registration was carried out either by the issuers themselves or by registrars located","page_number":390,"box":{"x":117,"y":878,"width":733,"height":12}},{"id":"6867b6bf-799d-4e19-bcc5-1ad79cc3bb30","block_type":"box","text":"II-51","page_number":390,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"875ece67-65ea-4001-8626-e7a024449c09","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":390,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ee1ccd46-d31e-425e-9632-746dd4449ad6","block_type":"box","text":"throughout Russia. These registrars may not have been subject to effective state supervision or","page_number":391,"box":{"x":116,"y":87,"width":715,"height":12}},{"id":"9c001897-cc93-4da2-8893-e37bd390f4d1","block_type":"box","text":"licensed with any governmental entity. In 2013, Russia established the National Settlement Depository","page_number":391,"box":{"x":117,"y":102,"width":764,"height":13}},{"id":"3d5de882-bdf3-46ac-bcff-256c2af14864","block_type":"box","text":"(“NSD”) as a recognized central securities depository, and title to Russian equities held through the","page_number":391,"box":{"x":117,"y":118,"width":740,"height":12}},{"id":"ad8671f3-f7bd-4572-8416-212b8479e04a","block_type":"box","text":"NSD is now based on the records of the NSD and not on the records of the local registrars. Although","page_number":391,"box":{"x":117,"y":134,"width":751,"height":12}},{"id":"712e7743-e468-4de8-b5d9-939058456d6f","block_type":"box","text":"the implementation of the NSD has enhanced the efficiency and transparency of the Russian securities","page_number":391,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"45e6f597-653a-47e6-9b7b-7a7b3bcc84ba","block_type":"box","text":"market, loss still can occur. Additionally, issuers and registrars remain prominent in the validation and","page_number":391,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"4d336a12-42c0-44c0-a450-dfaeb84e4250","block_type":"box","text":"approval of documentation requirements for corporate action processing in Russia, and, because the","page_number":391,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"f0e47500-57d8-4ff6-aaf0-080733f85365","block_type":"box","text":"documentation requirements and approval criteria vary between registrars and issuers, there remain","page_number":391,"box":{"x":116,"y":196,"width":749,"height":12}},{"id":"ee478ec8-09eb-4e47-bf98-79967a489cf6","block_type":"box","text":"inconsistent market standards in the Russian market with respect to the completion and submission of","page_number":391,"box":{"x":117,"y":211,"width":762,"height":12}},{"id":"944b3cc1-58e0-443e-89ef-451cee6733e4","block_type":"box","text":"corporate action elections. To the extent that a Fund suffers a loss relating to title or corporate actions","page_number":391,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"ce2134d4-2ecd-4fe5-95f0-9ed394b7976b","block_type":"box","text":"relating to its portfolio securities, it may be difficult for the Fund to enforce its rights or otherwise","page_number":391,"box":{"x":117,"y":242,"width":713,"height":12}},{"id":"0c7e2d90-eb33-4c80-abc1-2b8e23896120","block_type":"box","text":"remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":391,"box":{"x":117,"y":258,"width":731,"height":12}},{"id":"a2486d88-fbef-4a8f-a83a-73ab1a83ac46","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held","page_number":391,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"ad68c23d-2f62-47c0-952e-76d75e3939db","block_type":"box","text":"on behalf of their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments","page_number":391,"box":{"x":116,"y":289,"width":770,"height":12}},{"id":"afc9e965-4eac-4880-b000-6ec36901b525","block_type":"box","text":"in Russia.","page_number":391,"box":{"x":117,"y":304,"width":77,"height":10}},{"id":"fc0bde71-c42c-44b7-bbbd-37e9c9014a0e","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military","page_number":391,"box":{"x":117,"y":335,"width":708,"height":12}},{"id":"c3ff6ddc-9343-48d4-be80-2c6b6fa84d67","block_type":"box","text":"measures, as it did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia","page_number":391,"box":{"x":117,"y":351,"width":735,"height":12}},{"id":"e9dbb8f1-c643-4e7d-a9b1-0cf7728f359b","block_type":"box","text":"launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the","page_number":391,"box":{"x":117,"y":366,"width":720,"height":12}},{"id":"cc40f61e-b568-4d63-8e8b-36058a9bfaff","block_type":"box","text":"military action, resulting sanctions and resulting future market disruptions, including declines in its","page_number":391,"box":{"x":117,"y":382,"width":727,"height":12}},{"id":"7d6a7cd2-dd9e-46ac-b030-40a24a338b6d","block_type":"box","text":"stock markets and the value of the ruble against the U.S. dollar, are impossible to predict. Any such","page_number":391,"box":{"x":116,"y":397,"width":744,"height":12}},{"id":"02c78111-0904-440c-b5c5-fdd212ad1b11","block_type":"box","text":"disruptions caused by Russian military action or other actions (including cyberattacks and espionage)","page_number":391,"box":{"x":116,"y":413,"width":757,"height":12}},{"id":"7e3514a1-00ce-4f3f-936c-bccc68fd6a76","block_type":"box","text":"or resulting actual and threatened responses to such activity, including purchasing and financing","page_number":391,"box":{"x":116,"y":428,"width":720,"height":12}},{"id":"12b51aff-24b4-4bd4-ad17-08f6c26b4097","block_type":"box","text":"restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or","page_number":391,"box":{"x":117,"y":444,"width":685,"height":12}},{"id":"a721d61b-214c-428d-9e53-34cbb4614ed0","block_type":"box","text":"cyberattacks on the Russian government, Russian companies or Russian individuals, including","page_number":391,"box":{"x":116,"y":459,"width":710,"height":12}},{"id":"9e094a09-b019-46ed-96a0-dfd938b26d92","block_type":"box","text":"politicians, may impact Russia’s economy and Russian issuers of securities in which the Fund invests.","page_number":391,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"b9f2629d-7387-4956-b397-d50748b4192d","block_type":"box","text":"Actual and threatened responses to such activity, including purchasing restrictions, sanctions, tariffs or","page_number":391,"box":{"x":116,"y":490,"width":766,"height":12}},{"id":"396561eb-bb30-45ee-a382-62ab3dfaeafb","block_type":"box","text":"cyberattacks on the Russian government or Russian companies, may impact Russia’s economy and","page_number":391,"box":{"x":116,"y":506,"width":750,"height":12}},{"id":"b5275b4d-1699-4b4d-8a9b-879d37754c40","block_type":"box","text":"Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":391,"box":{"x":117,"y":521,"width":726,"height":12}},{"id":"25cfcf78-7f50-42fc-85e7-dd14fa9e5f14","block_type":"box","text":"military action may also impact the markets for certain Russian commodities, such as oil and natural","page_number":391,"box":{"x":117,"y":537,"width":747,"height":12}},{"id":"381adc05-eada-4ff0-9ac0-6e50b7984a63","block_type":"box","text":"gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":391,"box":{"x":116,"y":552,"width":758,"height":12}},{"id":"729ca886-13a7-4e1a-81aa-b7eea9cf297b","block_type":"box","text":"sectors globally.","page_number":391,"box":{"x":116,"y":568,"width":125,"height":12}},{"id":"785e1c1d-d123-4d4a-9492-54919d1fcfab","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”)","page_number":391,"box":{"x":117,"y":599,"width":741,"height":12}},{"id":"03980496-8980-4e9f-9273-736935abcd27","block_type":"box","text":"have imposed economic sanctions, which can consist of prohibiting certain securities trades, certain","page_number":391,"box":{"x":117,"y":614,"width":745,"height":12}},{"id":"8f260276-376d-4d44-8bb5-5ee4f8871c00","block_type":"box","text":"private transactions in the energy sector, asset freezes and prohibition of all business, against certain","page_number":391,"box":{"x":117,"y":630,"width":757,"height":12}},{"id":"fd156950-47bc-4a62-9648-55182e39aa36","block_type":"box","text":"Russian individuals, including politicians, and Russian corporate and banking entities. The Sanctioning","page_number":391,"box":{"x":117,"y":645,"width":765,"height":12}},{"id":"6983c87e-ed34-4b36-9f3e-e1358a0dc251","block_type":"box","text":"Bodies, or others, could also institute broader sanctions on Russia, including banning Russia from","page_number":391,"box":{"x":117,"y":661,"width":725,"height":12}},{"id":"d0d12057-e2ec-4694-b0ca-d33dc72de653","block_type":"box","text":"global payments systems that facilitate cross-border payments. These sanctions, or even the threat of","page_number":391,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"76d64490-d521-414f-bdd0-fcdde23ab9d6","block_type":"box","text":"further sanctions, may result in the decline of the value and liquidity of Russian securities, a weakening","page_number":391,"box":{"x":116,"y":692,"width":763,"height":12}},{"id":"22e65ada-8d33-4069-b7e8-9d8e0c9e9ee7","block_type":"box","text":"of the ruble or other adverse consequences to the Russian economy. These sanctions have resulted","page_number":391,"box":{"x":116,"y":707,"width":746,"height":12}},{"id":"9c215548-8c41-4464-b291-8eebf7a3dda4","block_type":"box","text":"and may continue to result in the immediate freeze of Russian securities and/or funds invested in","page_number":391,"box":{"x":116,"y":723,"width":719,"height":12}},{"id":"2a5666b9-e275-476e-bce7-621023807b2c","block_type":"box","text":"prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or","page_number":391,"box":{"x":117,"y":738,"width":752,"height":12}},{"id":"f671d9d7-b4e1-4ab7-9dd7-4a0d84e991c4","block_type":"box","text":"assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":391,"box":{"x":116,"y":754,"width":761,"height":12}},{"id":"4bc3cbf9-d992-4cd8-8473-7e8c9533cce0","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":391,"box":{"x":116,"y":769,"width":428,"height":12}},{"id":"2ff814d5-d567-497b-9bc3-6176f82c9208","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":391,"box":{"x":116,"y":800,"width":253,"height":12}},{"id":"bee1e473-6980-4bd6-a637-96c6248354dc","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi","page_number":391,"box":{"x":376,"y":800,"width":486,"height":12}},{"id":"4dd8abad-c8b5-438e-88b1-9476d4a25ae7","block_type":"box","text":"Arabian issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian","page_number":391,"box":{"x":116,"y":816,"width":752,"height":12}},{"id":"293c8061-b103-416a-b62c-b4a12f7c731d","block_type":"box","text":"government at any time, and unforeseen risks could materialize due to foreign ownership in such","page_number":391,"box":{"x":116,"y":831,"width":724,"height":12}},{"id":"4bfd7077-974f-4e24-8cc0-4c270715ad06","block_type":"box","text":"securities. In addition, the Capital Market Authority (“CMA”) places investment limitations on the","page_number":391,"box":{"x":116,"y":847,"width":715,"height":12}},{"id":"ebfa2c5b-905a-4f6c-b326-cd4a7f1f9b76","block_type":"box","text":"ownership of Saudi Arabian issuers by foreign investors, including a limitation on a Fund’s ownership","page_number":391,"box":{"x":116,"y":862,"width":753,"height":12}},{"id":"4299debd-5c18-4db1-9900-87c0cfcbab4d","block_type":"box","text":"of any single issuer listed on the Saudi Arabian Stock Exchange, which may prevent a Fund from","page_number":391,"box":{"x":116,"y":878,"width":726,"height":12}},{"id":"bf459043-8016-46da-9fbb-678bdd4ee983","block_type":"box","text":"II-52","page_number":391,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"0f495052-9a77-4843-bbb2-f53161168c2c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":391,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"6ac74ee9-c21e-4633-9e69-07ea315f912f","block_type":"box","text":"investing in accordance with its strategy and contribute to tracking error against the Underlying Index.","page_number":392,"box":{"x":117,"y":87,"width":757,"height":12}},{"id":"c0e6509f-a9e0-4195-9899-b7b53b657323","block_type":"box","text":"These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":392,"box":{"x":116,"y":103,"width":710,"height":12}},{"id":"04eaafe5-3f85-4e07-9b62-d5bb19313417","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain","page_number":392,"box":{"x":116,"y":118,"width":756,"height":12}},{"id":"6f53824e-3e72-439e-9981-8e33ad342ac1","block_type":"box","text":"or maintain any such licenses or approvals and may not be able to buy and sell securities at full value.","page_number":392,"box":{"x":116,"y":134,"width":763,"height":12}},{"id":"97b8888a-2a1c-45fe-b2b5-07c35d649de6","block_type":"box","text":"Major disruptions or regulatory changes could occur in the Saudi Arabian market, any of which could","page_number":392,"box":{"x":117,"y":149,"width":750,"height":12}},{"id":"a24feca0-bc6e-48f4-b03e-ef5cbeb908d7","block_type":"box","text":"negatively impact a Fund. These risks may be exacerbated, compared to more developed markets,","page_number":392,"box":{"x":117,"y":165,"width":741,"height":12}},{"id":"b6d80e63-e000-42c2-8d6a-41a93388a691","block_type":"box","text":"given the limited history of foreign investment in the Saudi Arabian market. Investments in Saudi","page_number":392,"box":{"x":116,"y":180,"width":719,"height":12}},{"id":"822158a8-b360-408f-a1c6-de2ebb042355","block_type":"box","text":"Arabia may also be subject to loss due to expropriation or nationalization of assets and property or the","page_number":392,"box":{"x":116,"y":196,"width":764,"height":12}},{"id":"4e8ba29b-0f95-4ec4-ba43-7a74f07a5c16","block_type":"box","text":"imposition of restrictions on additional foreign investments and repatriation of capital. Such heightened","page_number":392,"box":{"x":117,"y":211,"width":764,"height":12}},{"id":"68395ae5-84c0-4c9e-a404-bdbb716f5864","block_type":"box","text":"risks may include, among others, restrictions on and government intervention in international trade,","page_number":392,"box":{"x":117,"y":227,"width":739,"height":12}},{"id":"6782a796-3060-4eb4-820e-c32b80a549a1","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in","page_number":392,"box":{"x":116,"y":242,"width":694,"height":12}},{"id":"6522f43c-e171-4a3a-a069-484ca9dc96a7","block_type":"box","text":"governmental decision making, armed conflict, crime and instability as a result of religious, ethnic and/","page_number":392,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"7a16c8ed-8a3b-4ed2-8888-a40e40197350","block_type":"box","text":"or socioeconomic unrest. Saudi Arabia has privatized, or has begun the process of privatizing, certain","page_number":392,"box":{"x":116,"y":273,"width":759,"height":12}},{"id":"1474cc15-7919-470d-9b49-268283ccb077","block_type":"box","text":"entities and industries. Newly privatized companies may face strong competition from government","page_number":392,"box":{"x":116,"y":289,"width":733,"height":12}},{"id":"7688920e-9c0d-4628-914e-84237e293912","block_type":"box","text":"sponsored competitors that have not been privatized. In some instances, investors in newly privatized","page_number":392,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"23d81734-6271-40a7-861c-f6c782ba3d9d","block_type":"box","text":"entities have suffered losses due to the inability of the newly privatized entities to adjust quickly to a","page_number":392,"box":{"x":116,"y":320,"width":744,"height":12}},{"id":"d996cee6-5456-408c-894f-8e3ad21305cc","block_type":"box","text":"competitive environment or changing regulatory and legal standards or, in some cases, due to","page_number":392,"box":{"x":116,"y":335,"width":703,"height":12}},{"id":"ca6aabc4-bd5f-4f1f-94d6-551ed25649dc","block_type":"box","text":"re-nationalization of such privatized entities. There is no assurance that similar losses will not recur.","page_number":392,"box":{"x":117,"y":351,"width":743,"height":12}},{"id":"d133ad5f-1e7c-4ea5-9d68-99f919392583","block_type":"box","text":"Further, under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid","page_number":392,"box":{"x":117,"y":366,"width":754,"height":12}},{"id":"4e1eb934-fc2c-4c1b-a647-5cd16ec4db74","block_type":"box","text":"by a Saudi Arabian company to foreign stockholders are generally subject to a 5% withholding tax","page_number":392,"box":{"x":117,"y":382,"width":730,"height":12}},{"id":"1349e062-540a-41dd-be47-2a9abb033a37","block_type":"box","text":"(different tax rates may apply pursuant to an applicable treaty). Saudi Arabia is highly reliant on income","page_number":392,"box":{"x":117,"y":397,"width":770,"height":12}},{"id":"b768bddd-6284-49b8-bbe0-36b79f563036","block_type":"box","text":"from the sale of petroleum and trade with other countries involved in the sale of petroleum, and its","page_number":392,"box":{"x":116,"y":413,"width":732,"height":12}},{"id":"83e9fa70-2116-4ad6-89e8-d066227f3413","block_type":"box","text":"economy is therefore vulnerable to changes in foreign currency values and the market for petroleum.","page_number":392,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"595bd79b-13a7-4289-943b-b5a84742a5e8","block_type":"box","text":"As global demand for petroleum fluctuates, Saudi Arabia may be significantly impacted.","page_number":392,"box":{"x":116,"y":444,"width":655,"height":12}},{"id":"1d3e2251-fb26-469c-b392-404c0fd085d8","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial","page_number":392,"box":{"x":117,"y":475,"width":701,"height":12}},{"id":"cef14b14-c00c-4a23-b575-8b491019b955","block_type":"box","text":"influence over many aspects of the private sector. Although liberalization in the wider economy is","page_number":392,"box":{"x":117,"y":490,"width":724,"height":12}},{"id":"693f43d4-fd7f-43ae-9177-bd7d72522881","block_type":"box","text":"underway, in many areas it has lagged significantly: restrictions on foreign ownership persist, and the","page_number":392,"box":{"x":117,"y":506,"width":755,"height":12}},{"id":"2281332c-99dc-4a10-8deb-0669ae6828aa","block_type":"box","text":"government has an ownership stake in many key industries. The situation is exacerbated by the fact","page_number":392,"box":{"x":116,"y":521,"width":748,"height":12}},{"id":"43cd53ee-cee4-49b4-96c0-14fe5ce83966","block_type":"box","text":"that Saudi Arabia is governed by an absolute monarchy. Saudi Arabia has historically experienced","page_number":392,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"0670b5ab-b588-4695-b67f-087dc83e0392","block_type":"box","text":"strained relations with economic partners worldwide, including other countries in the Middle East due to","page_number":392,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"d3f326e7-4d62-4aa1-8b23-0ca4a9ff32de","block_type":"box","text":"geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security, including","page_number":392,"box":{"x":116,"y":568,"width":742,"height":12}},{"id":"672f550e-3b61-403c-8d68-9010a094ff9b","block_type":"box","text":"terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":392,"box":{"x":116,"y":583,"width":757,"height":12}},{"id":"4d88a32c-cd30-4052-acb3-bcfd96835e06","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions","page_number":392,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"531a172c-1310-4fa6-bafa-ce126f049651","block_type":"box","text":"in Saudi Arabia, which could affect private sector companies and a Fund, as well as the value of","page_number":392,"box":{"x":117,"y":614,"width":717,"height":12}},{"id":"e2157bb6-de25-457a-821c-cc936d60a64b","block_type":"box","text":"securities in a Fund’s portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian","page_number":392,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"a1038954-1d25-46db-a7c1-f0ac84fc2058","block_type":"box","text":"corporate entities, or even the threat of sanctions, may result in the decline of the value and liquidity of","page_number":392,"box":{"x":116,"y":645,"width":764,"height":12}},{"id":"c30e35f3-b7c6-4257-a38d-a878e0ac9091","block_type":"box","text":"Saudi Arabian securities, a weakening of the Saudi riyal or other adverse consequences to the Saudi","page_number":392,"box":{"x":116,"y":661,"width":749,"height":12}},{"id":"ba62329b-1649-4ccb-b854-5abf88b4c84d","block_type":"box","text":"Arabian economy. In addition, Saudi Arabia’s economy relies heavily on cheap, foreign labor, and","page_number":392,"box":{"x":116,"y":676,"width":723,"height":12}},{"id":"e7f833b8-f9d3-49c0-9441-61fa1d994888","block_type":"box","text":"changes in the availability of this labor supply could have an adverse effect on the economy.","page_number":392,"box":{"x":116,"y":692,"width":684,"height":12}},{"id":"c485e71a-98f3-4ab1-89fd-e8593b47a797","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a","page_number":392,"box":{"x":116,"y":723,"width":725,"height":12}},{"id":"b9580d15-d339-4ae3-ada9-ebb3f89a6920","block_type":"box","text":"result, securities markets in Saudi Arabia are subject to greater risks associated with market volatility,","page_number":392,"box":{"x":117,"y":738,"width":751,"height":12}},{"id":"c3df631a-a37e-45ab-87f4-7062c04bda8d","block_type":"box","text":"lower market capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations,","page_number":392,"box":{"x":117,"y":754,"width":699,"height":12}},{"id":"193c9fb5-6080-4efb-a66f-6788e2c3e4f6","block_type":"box","text":"uncertainty regarding the existence of trading markets, governmental control and heavy regulation of","page_number":392,"box":{"x":117,"y":769,"width":747,"height":12}},{"id":"56353b74-f87e-4801-9c6d-ad3d265f62c3","block_type":"box","text":"labor and industry. Shares of certain Saudi Arabian companies tend to trade less frequently than those","page_number":392,"box":{"x":117,"y":785,"width":761,"height":12}},{"id":"ec56894e-42b5-433b-a99d-f4b84ee2d064","block_type":"box","text":"of companies on exchanges in more developed markets. Such infrequent trading may adversely affect","page_number":392,"box":{"x":116,"y":800,"width":759,"height":12}},{"id":"5e00601c-8c04-4ce5-a236-3091b774a9e9","block_type":"box","text":"the pricing of these securities and a Fund’s ability to sell these securities in the future. Current","page_number":392,"box":{"x":116,"y":816,"width":697,"height":12}},{"id":"f47af1df-a6c9-4a1b-a65a-6e5b38be4a4b","block_type":"box","text":"regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":392,"box":{"x":117,"y":831,"width":733,"height":12}},{"id":"5499531a-759e-4cac-b8f4-e9d58d27cbcb","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a","page_number":392,"box":{"x":116,"y":847,"width":767,"height":12}},{"id":"bff68f52-926b-41c9-b6b5-5aa5f0fd63d2","block_type":"box","text":"Fund than is typically the case for investment managers.","page_number":392,"box":{"x":117,"y":862,"width":424,"height":12}},{"id":"abbfe2d7-88e7-43d5-b5c6-c86d21cbf0e1","block_type":"box","text":"II-53","page_number":392,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f051b911-31c9-4be8-9422-eb904012ce2d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":392,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"dc369023-d6da-4c54-af06-43e7353a76cb","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically","page_number":393,"box":{"x":116,"y":87,"width":687,"height":12}},{"id":"d29efddb-5e1e-41ec-9bc5-ee7097a4080f","block_type":"box","text":"experienced political instability, and there remains the possibility that the stability will not hold in the","page_number":393,"box":{"x":116,"y":103,"width":741,"height":12}},{"id":"e3052987-5c6f-444b-973c-64ca76e098c4","block_type":"box","text":"future or that instability in the larger Middle East region could adversely impact the economy of Saudi","page_number":393,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"6b460d76-1f71-4f67-8072-510a6084d0ca","block_type":"box","text":"Arabia. Instability may be caused by military developments, government interventions in the","page_number":393,"box":{"x":116,"y":134,"width":686,"height":12}},{"id":"05215d5a-8819-42b1-87c8-dd8026a772b2","block_type":"box","text":"marketplace, terrorism, extremist attitudes, attempted social or political reforms, religious differences,","page_number":393,"box":{"x":117,"y":149,"width":755,"height":12}},{"id":"f2ca1eec-8118-4964-8016-b8393e4c6f63","block_type":"box","text":"or other factors. Additionally, anti-Western views held by certain groups in the Middle East may","page_number":393,"box":{"x":116,"y":165,"width":710,"height":12}},{"id":"13edcda6-949b-4977-8314-2f9b5fa1727f","block_type":"box","text":"influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":393,"box":{"x":117,"y":180,"width":740,"height":12}},{"id":"97503a35-6637-44e4-a336-4573b0f933cf","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S.","page_number":393,"box":{"x":116,"y":196,"width":768,"height":12}},{"id":"c9808666-bcb0-46b6-b858-e198b4bc4056","block_type":"box","text":"is a significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi","page_number":393,"box":{"x":117,"y":211,"width":760,"height":12}},{"id":"de48662a-ae65-4ea1-b461-3d61909b9dd4","block_type":"box","text":"Arabia. As a result, economic conditions of Saudi Arabia may be particularly affected by changes in the","page_number":393,"box":{"x":116,"y":227,"width":771,"height":12}},{"id":"147a2be6-0ade-4c65-b66f-2c35508a428b","block_type":"box","text":"U.S. economy. A decrease in U.S. imports or exports, new trade and financial regulations or tariffs,","page_number":393,"box":{"x":117,"y":242,"width":738,"height":12}},{"id":"81728acc-1aa2-4880-a2c6-9fe467953e0c","block_type":"box","text":"changes in the U.S. dollar exchange rate or an economic slowdown in the U.S. may have a material","page_number":393,"box":{"x":116,"y":258,"width":746,"height":12}},{"id":"99d82a40-9c66-42ca-82da-e6e9dd5765bc","block_type":"box","text":"adverse effect on the economic conditions of Saudi Arabia and, as a result, securities to which the","page_number":393,"box":{"x":116,"y":273,"width":733,"height":11}},{"id":"1e0f494f-3cde-4a41-874b-afd57f910a85","block_type":"box","text":"Fund has exposure. Political instability in North Africa and the larger Middle East region has caused","page_number":393,"box":{"x":117,"y":289,"width":743,"height":12}},{"id":"1d472431-25d1-4f21-aa66-371732166664","block_type":"box","text":"significant disruptions to many industries. Continued political and social unrest in these areas may","page_number":393,"box":{"x":116,"y":304,"width":732,"height":12}},{"id":"628c8ef9-84f5-4367-83f9-d8ce766aafb4","block_type":"box","text":"negatively affect the value of securities in a Fund’s portfolio.","page_number":393,"box":{"x":117,"y":320,"width":449,"height":12}},{"id":"fe85fa96-beff-4c7d-b238-2e2faba3fe5a","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to","page_number":393,"box":{"x":117,"y":351,"width":731,"height":12}},{"id":"3d120c77-477f-43d0-b1e0-d164b744f48f","block_type":"box","text":"sanctions and/or embargoes imposed by the U.S. Government and the United Nations and/or countries","page_number":393,"box":{"x":116,"y":366,"width":772,"height":12}},{"id":"181d5d22-d3dd-4190-ae3a-ddbad9412af2","block_type":"box","text":"identified by the U.S. Government as state sponsors of terrorism. As a result, an issuer may sustain","page_number":393,"box":{"x":117,"y":382,"width":744,"height":12}},{"id":"3c9075a3-3221-4ed4-b44a-f2e19ff387d4","block_type":"box","text":"damage to its reputation if it is identified as an issuer which operates in, or has dealings with, such","page_number":393,"box":{"x":116,"y":397,"width":734,"height":12}},{"id":"6d4f7863-6f0b-44c6-b820-c2f9aa844b30","block_type":"box","text":"countries. A Fund, as an investor in such issuers will be indirectly subject to those risks.","page_number":393,"box":{"x":116,"y":413,"width":655,"height":12}},{"id":"7b0cdfe1-074c-4a6f-8020-d04bd3afac56","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":393,"box":{"x":116,"y":444,"width":237,"height":12}},{"id":"4a5a2d8f-c81a-408b-b7a2-f8d2d3c24e44","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory,","page_number":393,"box":{"x":354,"y":444,"width":493,"height":12}},{"id":"223ffe22-e16e-4a25-a6b6-2f00ee68ff69","block_type":"box","text":"political, currency, security, expropriation and/or nationalization of assets and economic risk specific to","page_number":393,"box":{"x":117,"y":459,"width":764,"height":12}},{"id":"817b2507-3f67-4675-98a0-33734409fe2b","block_type":"box","text":"Venezuela. Venezuela is extremely well endowed with natural resources, including oil and natural gas,","page_number":393,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"5bbf30f5-f2af-4f77-b6e2-fc64365b397f","block_type":"box","text":"and its economy is heavily dependent on export of natural resources to key trading partners. Any act of","page_number":393,"box":{"x":116,"y":490,"width":770,"height":12}},{"id":"91bf5eed-edfe-490a-a03f-7d683cd5d0f5","block_type":"box","text":"terrorism, an armed conflict or a breakdown of a key trading relationship that disrupts the production or","page_number":393,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"ae70a881-3cab-4201-9cd6-cbc8832bd3fc","block_type":"box","text":"export of natural resources will likely negatively affect the Venezuelan economy. The government","page_number":393,"box":{"x":116,"y":521,"width":727,"height":12}},{"id":"57a57391-792e-4832-a816-5943e27533ff","block_type":"box","text":"continues to control key sectors of the economy, including upstream oil and gas production, and has","page_number":393,"box":{"x":116,"y":537,"width":749,"height":12}},{"id":"b0e13d08-8c2b-4302-8693-6a67dfae88c1","block_type":"box","text":"sought to increase its role in key sectors, such as telecommunications and steel. Meanwhile,","page_number":393,"box":{"x":116,"y":552,"width":692,"height":12}},{"id":"8decdf05-1059-4436-9459-94563a712fef","block_type":"box","text":"ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":393,"box":{"x":116,"y":568,"width":753,"height":12}},{"id":"03857b27-fc45-42ed-b082-e46c3cf8200f","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues","page_number":393,"box":{"x":116,"y":583,"width":746,"height":12}},{"id":"0c4a4397-cbf3-4b40-9929-48034b336e49","block_type":"box","text":"between the governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions,","page_number":393,"box":{"x":117,"y":599,"width":731,"height":12}},{"id":"c9dd9639-e130-4456-86a0-0d49105efc6a","block_type":"box","text":"which consist of asset freezes and sectoral sanctions, on certain Venezuelan individuals and","page_number":393,"box":{"x":116,"y":614,"width":693,"height":11}},{"id":"69bddc25-ad62-4502-bdae-68e71aa93272","block_type":"box","text":"Venezuelan corporate entities, and on the Venezuelan government. The U.S. could also institute","page_number":393,"box":{"x":116,"y":630,"width":722,"height":12}},{"id":"42c02b36-31d9-45cd-b484-b5b5af260bd8","block_type":"box","text":"broader sanctions on Venezuela. The U.S. has also taken military action against Venezuela in an effort","page_number":393,"box":{"x":117,"y":645,"width":769,"height":12}},{"id":"55047686-41d8-4a94-b5e9-7b9d638e0e83","block_type":"box","text":"to effect regime change. Military action, sanctions, or even the threat of further military action and","page_number":393,"box":{"x":116,"y":661,"width":721,"height":12}},{"id":"d7d7686d-6b10-41da-8c6e-02db21aa6c9b","block_type":"box","text":"sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a weakening of","page_number":393,"box":{"x":116,"y":676,"width":758,"height":12}},{"id":"e369625b-c267-47ae-bf51-9b8fca529fb7","block_type":"box","text":"the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":393,"box":{"x":116,"y":692,"width":741,"height":12}},{"id":"7c9770d0-0a53-4c2f-a919-0077f5120925","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions","page_number":393,"box":{"x":116,"y":707,"width":727,"height":12}},{"id":"d642b3da-dbbe-4287-9dea-70b434f1ce8d","block_type":"box","text":"against Venezuela may in the future be imposed by the U.S. or other countries. These factors, among","page_number":393,"box":{"x":116,"y":723,"width":755,"height":12}},{"id":"dd3398de-7cbb-4c1a-827f-a293eaf2c398","block_type":"box","text":"others, can have a negative impact on a Fund’s investments.","page_number":393,"box":{"x":116,"y":738,"width":451,"height":12}},{"id":"0c5c55da-e336-4da2-b25b-4d7cb2341154","block_type":"box","text":"Brady Bonds.","page_number":393,"box":{"x":116,"y":769,"width":99,"height":12}},{"id":"875b4d0f-409d-4731-85f1-a533cb3b3476","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities","page_number":393,"box":{"x":222,"y":769,"width":628,"height":12}},{"id":"99cd2a23-3bcc-4631-8e40-0385cd86741b","block_type":"box","text":"may include emerging market governmental debt obligations commonly referred to as Brady Bonds.","page_number":393,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"0670abda-0358-4f33-8357-7851cc1c0800","block_type":"box","text":"Brady Bonds are securities created through the exchange of existing commercial bank loans to","page_number":393,"box":{"x":117,"y":800,"width":704,"height":12}},{"id":"cd8a816d-b465-49b0-b789-49c1258bf2db","block_type":"box","text":"sovereign entities for new obligations in connection with debt restructurings under a debt restructuring","page_number":393,"box":{"x":116,"y":816,"width":755,"height":12}},{"id":"4b9b9f67-c0ad-4362-80a3-4dd399e5e0dc","block_type":"box","text":"plan introduced by former U.S. Secretary of the Treasury, Nicholas F. Brady (the “Brady Plan”). Brady","page_number":393,"box":{"x":117,"y":831,"width":760,"height":12}},{"id":"ac23de76-393a-4cb4-92d6-9b1b0f05ce44","block_type":"box","text":"Plan debt restructurings have been implemented in a number of countries, including: Argentina,","page_number":393,"box":{"x":117,"y":847,"width":713,"height":12}},{"id":"9cf69fff-7bf2-4cef-931a-f63fd46822b2","block_type":"box","text":"Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico, Niger, Nigeria,","page_number":393,"box":{"x":117,"y":862,"width":766,"height":12}},{"id":"e3de9c9f-6c6b-4eeb-8241-5bdd38c0b6ac","block_type":"box","text":"Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":393,"box":{"x":117,"y":878,"width":728,"height":12}},{"id":"fa40f350-555a-4298-9e44-33dc94629d5e","block_type":"box","text":"II-54","page_number":393,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"1752f16f-ea32-4ffc-896c-92758db737df","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":393,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4eff1f22-91a3-4c04-b278-82f1ca12dd71","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the","page_number":394,"box":{"x":116,"y":87,"width":727,"height":12}},{"id":"d8792256-b7ab-4f9e-a7e2-3a86dc24e680","block_type":"box","text":"Philippines, and Venezuela.","page_number":394,"box":{"x":117,"y":103,"width":211,"height":11}},{"id":"945d58b8-bbcc-463d-9265-0d6b67058eeb","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the","page_number":394,"box":{"x":117,"y":135,"width":752,"height":12}},{"id":"b7511c22-0578-4958-b7e0-4b2092fbc168","block_type":"box","text":"U.S. dollar) and are actively traded in the OTC secondary market. Brady Bonds are not considered to","page_number":394,"box":{"x":117,"y":151,"width":756,"height":12}},{"id":"d6ccf3f5-8f35-4b15-aba4-33c885236be4","block_type":"box","text":"be U.S. Government Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be","page_number":394,"box":{"x":117,"y":166,"width":747,"height":12}},{"id":"89f6bd77-4fb2-4bfb-b6c5-799ec557db88","block_type":"box","text":"fixed rate par bonds or floating rate discount bonds, are generally collateralized in full as to principal by","page_number":394,"box":{"x":116,"y":182,"width":768,"height":12}},{"id":"465b52d2-4a2c-4ecd-bd43-6211935deb54","block_type":"box","text":"U.S. Treasury zero-coupon bonds having the same maturity as the Brady Bonds. Interest payments on","page_number":394,"box":{"x":117,"y":197,"width":767,"height":12}},{"id":"4041cfc1-8633-4609-a1c9-6a91d2aaa7ad","block_type":"box","text":"these Brady Bonds generally are collateralized on a one-year or longer rolling-forward basis by cash or","page_number":394,"box":{"x":116,"y":213,"width":769,"height":12}},{"id":"eb9b306a-112c-4bba-afd9-2e632041f699","block_type":"box","text":"securities in an amount that, in the case of fixed rate bonds, is equal to at least one year of interest","page_number":394,"box":{"x":116,"y":228,"width":738,"height":12}},{"id":"dc3cb552-c6ff-4502-b2a3-28e67653fff1","block_type":"box","text":"payments or, in the case of floating rate bonds, initially is equal to at least one year’s interest payments","page_number":394,"box":{"x":117,"y":244,"width":769,"height":12}},{"id":"0fd7c6ad-e60e-4d11-96a1-7aeadc4c0f54","block_type":"box","text":"based on the applicable interest rate at that time and is adjusted at regular intervals thereafter. Certain","page_number":394,"box":{"x":117,"y":259,"width":764,"height":12}},{"id":"5ede785e-4e1d-4970-a6af-d308b124d794","block_type":"box","text":"Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect","page_number":394,"box":{"x":117,"y":275,"width":711,"height":12}},{"id":"06a77809-63a3-4def-bb65-fdbffbb8493a","block_type":"box","text":"constitute supplemental interest payments but generally are not collateralized. Brady Bonds are often","page_number":394,"box":{"x":116,"y":290,"width":757,"height":12}},{"id":"7db359b8-326d-48cd-b283-c73170b9ae53","block_type":"box","text":"viewed as having three or four valuation components: (i) the collateralized repayment of principal at","page_number":394,"box":{"x":116,"y":306,"width":743,"height":12}},{"id":"226ff64e-ad0f-4ea3-92c3-468bcb91e3ce","block_type":"box","text":"final maturity; (ii) the collateralized interest payments; (iii) the uncollateralized interest payments; and","page_number":394,"box":{"x":116,"y":321,"width":753,"height":12}},{"id":"a3d64853-77b7-4248-aaef-d465563af2b7","block_type":"box","text":"(iv) any uncollateralized repayment of principal at maturity (the uncollateralized amounts constitute the","page_number":394,"box":{"x":117,"y":337,"width":763,"height":12}},{"id":"4b4bb323-43a6-4bfa-a88e-e1a4fa0b919e","block_type":"box","text":"“residual risk”).","page_number":394,"box":{"x":116,"y":352,"width":116,"height":12}},{"id":"c7cf67de-863f-4be7-b4e1-cfcc8ec421b5","block_type":"box","text":"Brady Bonds involve various risk factors described abov","page_number":394,"box":{"x":117,"y":385,"width":398,"height":12}},{"id":"2e2c539f-65bc-4cc2-ac20-3946130ab062","block_type":"box","text":"e associated with investing in foreign securities,","page_number":394,"box":{"x":516,"y":385,"width":343,"height":12}},{"id":"0e45d027-39ef-4e39-a236-8c4304de2623","block_type":"box","text":"including the history of defaults with respect to co","page_number":394,"box":{"x":117,"y":400,"width":348,"height":13}},{"id":"71a08558-a308-4cdf-a083-f3f551c52048","block_type":"box","text":"mmercial bank loans by public and private entities of","page_number":394,"box":{"x":467,"y":400,"width":377,"height":13}},{"id":"0fb42fcd-0083-479f-a3fb-12edb06e3c68","block_type":"box","text":"countries issuing Brady Bonds. In light of the resi","page_number":394,"box":{"x":116,"y":416,"width":346,"height":12}},{"id":"2dbbe194-000c-4157-bd33-1e1d500a578a","block_type":"box","text":"dual risk of Brady Bonds and, among other factors, the","page_number":394,"box":{"x":464,"y":416,"width":393,"height":12}},{"id":"87680e34-9d6a-48cc-9c7a-54dc48873490","block_type":"box","text":"history of defaults, investments in Brady Bonds are c","page_number":394,"box":{"x":117,"y":431,"width":373,"height":13}},{"id":"5b4ca85e-f52a-4e92-9c6f-707a0db07daf","block_type":"box","text":"onsidered speculative. There can be no assurance that","page_number":394,"box":{"x":491,"y":432,"width":396,"height":11}},{"id":"8f0c82e4-91f9-402e-96f1-e0068a31bd41","block_type":"box","text":"Brady Bonds in which the Funds may invest will not be subject to restructuring arrangements or to requests","page_number":394,"box":{"x":117,"y":447,"width":766,"height":12}},{"id":"68bf973c-6e39-4a36-a827-50b293e062a2","block_type":"box","text":"for new credit, which may cause the Funds to suffer a lo","page_number":394,"box":{"x":116,"y":462,"width":397,"height":13}},{"id":"807f550c-0541-40be-980a-0842272e829b","block_type":"box","text":"ss of interest or principal on any of its holdings.","page_number":394,"box":{"x":514,"y":462,"width":338,"height":13}},{"id":"a0dd4157-e593-4bf3-b454-6bfac0b3b0d5","block_type":"box","text":"China Investments Risk.","page_number":394,"box":{"x":117,"y":495,"width":185,"height":10}},{"id":"bf8dcda5-98d4-4ef2-adba-1b10866915c0","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the","page_number":394,"box":{"x":117,"y":519,"width":734,"height":12}},{"id":"738be754-8326-42ea-b306-5b10f0bae3c0","block_type":"box","text":"“PRC”), including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and","page_number":394,"box":{"x":116,"y":535,"width":764,"height":12}},{"id":"f5690a47-bdac-48ea-8c15-f0b923ae8a5b","block_type":"box","text":"special considerations not typically associated with investing in the U.S. securities markets. Such","page_number":394,"box":{"x":116,"y":550,"width":725,"height":12}},{"id":"f2040ea5-0829-4fb8-a7cf-8be1b4d3af0d","block_type":"box","text":"heightened risks include, among others, an authoritarian government, popular unrest associated with","page_number":394,"box":{"x":117,"y":566,"width":753,"height":12}},{"id":"78e13f1a-5f79-4c29-85db-0d9ed123360b","block_type":"box","text":"demands for improved political, economic and social conditions, the impact of regional conflict on the","page_number":394,"box":{"x":116,"y":581,"width":754,"height":12}},{"id":"608ff964-0920-4c7a-93a3-f0bcc45207e4","block_type":"box","text":"economy and hostile relations with other countries.","page_number":394,"box":{"x":116,"y":597,"width":382,"height":12}},{"id":"8fa4ce5d-2774-4596-94bf-20ef73797579","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could","page_number":394,"box":{"x":117,"y":629,"width":729,"height":13}},{"id":"ad753fed-e134-42f9-8ff2-8bf5c312e929","block_type":"box","text":"disrupt economic development. The Chinese economy is vulnerable to the long-running disagreements","page_number":394,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"fb38a3a0-a1c5-4ee2-9b36-350c06b9e454","block_type":"box","text":"and religious and nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been","page_number":394,"box":{"x":116,"y":660,"width":752,"height":13}},{"id":"fd74ad1c-67d6-4843-a7db-c79d4a442582","block_type":"box","text":"tensions between the Chinese government and many people in Hong Kong who perceive China as","page_number":394,"box":{"x":116,"y":676,"width":733,"height":12}},{"id":"237d5261-13c5-460b-a8fc-227f8ce3edab","block_type":"box","text":"tightening control over Hong Kong’s semi-autonomous liberal political, economic, legal, and social","page_number":394,"box":{"x":116,"y":692,"width":725,"height":12}},{"id":"0c31967b-d759-4efe-a7e0-23c7f6bb25f6","block_type":"box","text":"framework. Protests and unrest have increased tensions even further. Due to the interconnected","page_number":394,"box":{"x":116,"y":707,"width":716,"height":10}},{"id":"cedb8e84-8d37-44da-a30e-b806b4b4d2cc","block_type":"box","text":"nature of the Hong Kong and Chinese economies, this instability in Hong Kong may cause uncertainty","page_number":394,"box":{"x":117,"y":722,"width":756,"height":13}},{"id":"9ad49ee1-cba2-4b30-99c1-fc05fab8dd8f","block_type":"box","text":"in the Hong Kong and Chinese markets. China has a complex territorial dispute regarding the","page_number":394,"box":{"x":117,"y":738,"width":691,"height":12}},{"id":"05af2aff-40b9-488f-b567-e73d7ec1bf72","block_type":"box","text":"sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":394,"box":{"x":116,"y":753,"width":761,"height":13}},{"id":"9015c9c5-41c2-4e5a-81db-9492d6bfaa1e","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse","page_number":394,"box":{"x":116,"y":769,"width":767,"height":12}},{"id":"766ad62d-a5e5-4f00-a45e-38a5e6ff709a","block_type":"box","text":"impact on the value of the Fund’s investments in China or Taiwan, may cause a suspension in a","page_number":394,"box":{"x":117,"y":784,"width":712,"height":13}},{"id":"3f9d95f9-b936-41a5-b341-860beff147f6","block_type":"box","text":"Fund’s ability to trade in certain securities or other assets or may otherwise make such investments","page_number":394,"box":{"x":117,"y":800,"width":736,"height":12}},{"id":"f1f67062-0ad9-4794-ac14-5a4fdb99a2b7","block_type":"box","text":"impracticable or impossible. Any escalation of hostility between China and Taiwan would likely have a","page_number":394,"box":{"x":117,"y":815,"width":753,"height":13}},{"id":"83e12a88-f893-4ff4-977c-3f4d36330078","block_type":"box","text":"significant adverse impact on the value of the Fund’s investments in both countries and the region. In","page_number":394,"box":{"x":116,"y":831,"width":755,"height":12}},{"id":"69d154eb-4975-476c-bd36-78edcb6c854e","block_type":"box","text":"addition, China has strained international relations with Japan, India, the Philippines and other","page_number":394,"box":{"x":116,"y":846,"width":703,"height":12}},{"id":"8545d219-f067-4938-9cd8-750fa2829f6d","block_type":"box","text":"neighbors due to territorial disputes, historical animosities and other defense concerns. Frictions","page_number":394,"box":{"x":117,"y":862,"width":717,"height":12}},{"id":"e0a0ff05-5e4d-45df-a26a-d85fae64c287","block_type":"box","text":"between China and the Philippines in the South China Sea pose a risk of escalation potentially leading","page_number":394,"box":{"x":117,"y":877,"width":765,"height":13}},{"id":"f1e7f98e-4908-4ac4-ab6d-e0e5e163902f","block_type":"box","text":"II-55","page_number":394,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"91059b28-3d6b-4b5a-b9f2-59aaa8ca830a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":394,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2476b2f6-255d-4383-9180-00911e90304b","block_type":"box","text":"to military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks","page_number":395,"box":{"x":116,"y":87,"width":752,"height":12}},{"id":"db218f6e-de00-4ad8-91ad-52a2ee1eadfe","block_type":"box","text":"against foreign companies and foreign governments. Actual and threatened responses to such activity","page_number":395,"box":{"x":116,"y":102,"width":763,"height":13}},{"id":"0adffab3-d1e1-4fbf-b95f-2a5a17c950ab","block_type":"box","text":"and strained international relations, including purchasing restrictions, sanctions, tariffs or cyberattacks","page_number":395,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"90158ddb-0ddd-491d-b2b6-e1e4a4ae928d","block_type":"box","text":"on the Chinese government or Chinese companies, may impact China’s economy and Chinese issuers","page_number":395,"box":{"x":116,"y":134,"width":769,"height":12}},{"id":"8830e188-6082-4883-965e-0afa0a5ad751","block_type":"box","text":"of securities in which a Fund invests. China could be affected by military events on the Korean","page_number":395,"box":{"x":116,"y":149,"width":705,"height":12}},{"id":"ec52fbea-007f-47f5-a885-ba9f4f26077e","block_type":"box","text":"peninsula or internal instability within North Korea. These situations may cause uncertainty in the","page_number":395,"box":{"x":117,"y":165,"width":723,"height":12}},{"id":"58974538-b7ac-4506-aea1-41a0d49b7403","block_type":"box","text":"Chinese market and may adversely affect the performance of the Chinese economy.","page_number":395,"box":{"x":117,"y":180,"width":631,"height":12}},{"id":"813583ce-b6f5-42f9-b6e4-45dc79c0161e","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy,","page_number":395,"box":{"x":116,"y":211,"width":712,"height":12}},{"id":"8bdd1f57-c2de-4874-8c13-45ffdb56ea9b","block_type":"box","text":"promote foreign investment in the economy, reduce government control of the economy and develop","page_number":395,"box":{"x":117,"y":227,"width":752,"height":12}},{"id":"e90790cb-143f-4ed9-9cc5-bcf8c5fbdb41","block_type":"box","text":"market mechanisms. However, the Chinese government still exercises substantial influence over many","page_number":395,"box":{"x":117,"y":242,"width":768,"height":12}},{"id":"397601f5-f046-452d-bc76-ce3bf097bc4a","block_type":"box","text":"aspects of the private sector and may own or control many companies. Chinese companies, such as","page_number":395,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"13a85fd7-5e89-45f3-86b3-6c00b039ef0b","block_type":"box","text":"those in the financial services or technology sectors, and potentially other sectors in the future, are","page_number":395,"box":{"x":116,"y":273,"width":736,"height":12}},{"id":"6433712a-680c-40f2-9ad2-4ad655393da7","block_type":"box","text":"subject to the risk that Chinese authorities can intervene in their operations and structure. The Chinese","page_number":395,"box":{"x":116,"y":289,"width":769,"height":12}},{"id":"e36b3bc0-7bba-4271-8155-c33172ca01a4","block_type":"box","text":"government continues to maintain a major role in economic policymaking and investing in China","page_number":395,"box":{"x":116,"y":304,"width":717,"height":12}},{"id":"795324f3-a2c2-4bc9-a675-4bafe0343bd5","block_type":"box","text":"involves risk of loss due to expropriation, nationalization, confiscation of assets and property or the","page_number":395,"box":{"x":117,"y":320,"width":736,"height":12}},{"id":"5ffbc837-bdbf-469c-ae7b-511d90518f51","block_type":"box","text":"imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":395,"box":{"x":117,"y":335,"width":647,"height":12}},{"id":"79adc16e-6ebe-4c05-ae90-8ab9dc8b58df","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of","page_number":395,"box":{"x":116,"y":366,"width":764,"height":12}},{"id":"4655f5c3-9ad9-426f-9653-c2a0b728f413","block_type":"box","text":"trading restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks.","page_number":395,"box":{"x":116,"y":382,"width":761,"height":12}},{"id":"3ff218ff-62a1-44cd-9a05-34569e452e2d","block_type":"box","text":"This may affect market price and liquidity of these stocks, and may have an unpredictable impact on","page_number":395,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"3bf9889f-76cb-4c6a-ac0b-5df4ee77c580","block_type":"box","text":"the investment activities of the Funds. Furthermore, such market interventions may have a negative","page_number":395,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"e517ea76-8ded-4205-813b-43b86c71b7db","block_type":"box","text":"impact on market sentiment which may in turn affect the performance of the securities markets and as","page_number":395,"box":{"x":117,"y":428,"width":762,"height":12}},{"id":"960c53f2-9a08-4b90-8977-9bd019515276","block_type":"box","text":"a result the performance of the Funds.","page_number":395,"box":{"x":116,"y":444,"width":290,"height":12}},{"id":"b95231f0-d4c4-43e3-9470-46d1e9d669b4","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of","page_number":395,"box":{"x":117,"y":475,"width":724,"height":12}},{"id":"28224003-1040-4e20-9ccf-a8b7f3d50b5a","block_type":"box","text":"investors, brokers and other participants than in the United States. Accordingly, issuers of securities in","page_number":395,"box":{"x":117,"y":490,"width":737,"height":12}},{"id":"6d95be1e-1faa-4f59-98eb-c13ad1bd58c9","block_type":"box","text":"China, including Chinese companies that are listed on U.S. exchanges, are not subject to the same","page_number":395,"box":{"x":117,"y":506,"width":717,"height":12}},{"id":"8ab22f67-c0ea-4762-8488-9f1dc119f6f7","block_type":"box","text":"degree of regulation as are U.S. issuers with respect to such matters as insider trading rules, tender offer","page_number":395,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"e7bb872d-bcc5-44f8-bebc-679295f3e16d","block_type":"box","text":"regulation, accounting standards or auditor oversight, stockholder proxy requirements and the","page_number":395,"box":{"x":117,"y":537,"width":677,"height":12}},{"id":"b29a267f-271e-4346-b33e-3ad98e2d9deb","block_type":"box","text":"requirements mandating timely and accurate disclosure of information. Securities markets in China are in","page_number":395,"box":{"x":117,"y":552,"width":758,"height":12}},{"id":"93c16d6e-0d15-402b-9042-b4920b26452a","block_type":"box","text":"the process of change and further development. This may lead to trading volatility, difficulty in the","page_number":395,"box":{"x":116,"y":568,"width":702,"height":12}},{"id":"d7cf7a96-faea-4523-8766-3d8d6cfa70e8","block_type":"box","text":"settlement and recording of transactions and difficulty in interpreting and applying the relevant regulation.","page_number":395,"box":{"x":116,"y":583,"width":758,"height":12}},{"id":"043913f7-a004-4c55-bb6e-7cf5d6b28476","block_type":"box","text":"Custodians may not be able to offer the level of service and safe-keeping in relation to the settlement and","page_number":395,"box":{"x":117,"y":599,"width":760,"height":12}},{"id":"3ef6b7cd-dddc-4a67-8fe8-161cb68c4b5e","block_type":"box","text":"administration of securities in China that is customary in more developed markets. In particular, there is a","page_number":395,"box":{"x":116,"y":614,"width":759,"height":12}},{"id":"ac44d1bf-07a0-444f-ae96-7725c4793850","block_type":"box","text":"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":395,"box":{"x":117,"y":630,"width":762,"height":12}},{"id":"24eb124f-3f9a-4ab3-a151-4beb6cdfaf7d","block_type":"box","text":"sub-custodian.","page_number":395,"box":{"x":116,"y":645,"width":110,"height":10}},{"id":"31d995de-4396-445b-a3a5-902b009be11d","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or","page_number":395,"box":{"x":116,"y":676,"width":702,"height":12}},{"id":"7c49c784-dfd2-4e56-9de1-78bf13621207","block_type":"box","text":"litigation against Chinese companies, and shareholders may have limited legal remedies. The Funds","page_number":395,"box":{"x":117,"y":692,"width":745,"height":12}},{"id":"300fd98c-f44b-42a9-b884-5a545ff0973e","block_type":"box","text":"do not select investments based on investor protection considerations.","page_number":395,"box":{"x":116,"y":707,"width":522,"height":12}},{"id":"02bcc6c8-014a-4ab2-b9b6-1903d520297a","block_type":"box","text":"The Chinese government historically took positions","page_number":395,"box":{"x":116,"y":738,"width":370,"height":12}},{"id":"b28fd0e1-d4f2-406a-8e2c-1b4851fb6529","block_type":"box","text":"that prevented the U.S. P","page_number":395,"box":{"x":492,"y":738,"width":184,"height":12}},{"id":"a2c8c227-7232-408b-b2ba-3b69d270a7f3","block_type":"box","text":"ublic Company Accounting","page_number":395,"box":{"x":677,"y":738,"width":194,"height":12}},{"id":"5c217f99-80f4-40b4-a911-fcad21fa1ec2","block_type":"box","text":"Oversight Board (“PCAOB”) from inspecting the audit wo","page_number":395,"box":{"x":116,"y":754,"width":412,"height":12}},{"id":"dc6a5bfc-aa51-422e-aec4-48baa24e94f3","block_type":"box","text":"rk and practices of accounting firms in mainland","page_number":395,"box":{"x":530,"y":754,"width":345,"height":12}},{"id":"04280552-d82a-4bf2-937d-0c2e7b0c82ce","block_type":"box","text":"China and Hong Kong for compliance with U.S. law","page_number":395,"box":{"x":117,"y":769,"width":372,"height":12}},{"id":"9e028f60-b21b-4b98-808f-f12318029529","block_type":"box","text":"and professional standards. On August 26, 2022, the","page_number":395,"box":{"x":494,"y":769,"width":385,"height":12}},{"id":"e7b62acc-49ea-45dd-93ee-acc59f7eda5a","block_type":"box","text":"PCAOB signed a Statement of Prot","page_number":395,"box":{"x":117,"y":785,"width":256,"height":12}},{"id":"895e7f10-ba9b-4455-872e-cb45cb80d075","block_type":"box","text":"ocol with the China Securities Regulatory Commission and the","page_number":395,"box":{"x":374,"y":785,"width":454,"height":12}},{"id":"67c1eda6-3a53-458a-a092-efef510183ec","block_type":"box","text":"Ministry of Finance of the PRC, which marked the first step toward opening access for the PCAOB to","page_number":395,"box":{"x":117,"y":800,"width":732,"height":12}},{"id":"a073a1af-0583-4030-9791-8153f5899468","block_type":"box","text":"inspect and investigate registered public accounting firms headquartered in mainland China and Hong","page_number":395,"box":{"x":117,"y":816,"width":739,"height":12}},{"id":"580218bf-bbcb-4585-9d5c-2b39c3542665","block_type":"box","text":"Kong completely in accordance with U.S. law. However, as this development is relatively recent, the","page_number":395,"box":{"x":117,"y":831,"width":730,"height":12}},{"id":"2e49c830-fb57-4188-8eb2-9b687d5772ec","block_type":"box","text":"implementation of the Statement","page_number":395,"box":{"x":117,"y":847,"width":241,"height":12}},{"id":"fd312c3b-6c2d-4eb2-8c51-f5f6acd1d51c","block_type":"box","text":"of Protocol remains to be tested. Audits performed by PCAOB","page_number":395,"box":{"x":358,"y":847,"width":456,"height":12}},{"id":"ee679a2d-27a3-48a7-9d53-7fdccadc4e8e","block_type":"box","text":"registered accounting firms in mainland China and Hong Kong may be less reliable than those performed","page_number":395,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"d73c33ff-1367-475d-b6c1-dd655928aea3","block_type":"box","text":"by firms subject to PCAOB inspection. Accordingly,","page_number":395,"box":{"x":117,"y":878,"width":376,"height":12}},{"id":"07ac576e-9701-4f88-9704-d653dfbf3476","block_type":"box","text":"information about the Chinese securities in which the","page_number":395,"box":{"x":494,"y":878,"width":388,"height":9}},{"id":"e608ea54-b60b-40e7-b4fa-e4788f7459c5","block_type":"box","text":"II-56","page_number":395,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6d00d020-d5f4-440e-a932-12bfe430579c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":395,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"53ed2e74-2501-41d1-a3ff-f3a046429719","block_type":"box","text":"Funds invest may be less reliable or complete. U","page_number":396,"box":{"x":117,"y":87,"width":352,"height":12}},{"id":"b83f3164-5bc2-4ae9-97fe-b54b291e1527","block_type":"box","text":"nder amendments to the Sarbanes-Oxley Act enacted in","page_number":396,"box":{"x":472,"y":87,"width":414,"height":12}},{"id":"19444023-be0f-43b0-9c4e-c0cb6cf69830","block_type":"box","text":"December 2020, which requires that the PCAOB be permi","page_number":396,"box":{"x":117,"y":102,"width":421,"height":12}},{"id":"a2a072b3-d058-43dc-893b-1f0fe2e887e7","block_type":"box","text":"tted to inspect the accounting firm of a U.S.-","page_number":396,"box":{"x":539,"y":102,"width":320,"height":13}},{"id":"eb40c681-4601-493f-8906-710d0ae39536","block_type":"box","text":"listed Chinese issuer, Chinese companies with securi","page_number":396,"box":{"x":117,"y":118,"width":385,"height":12}},{"id":"ddf05683-10fc-4c59-9c22-504285333ea7","block_type":"box","text":"ties listed on U.S. exchanges may be delisted if the","page_number":396,"box":{"x":504,"y":118,"width":376,"height":12}},{"id":"ebe817d7-29ff-468c-adee-ca69e4742bef","block_type":"box","text":"PCAOB is unable to inspect the accounting firm.","page_number":396,"box":{"x":117,"y":134,"width":355,"height":12}},{"id":"396b06b3-9047-4124-acb6-01e0ebeaecbd","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange","page_number":396,"box":{"x":116,"y":165,"width":763,"height":12}},{"id":"cffe31b5-81a8-46f5-a877-f41bc385eb77","block_type":"box","text":"control policies and repatriation restrictions imposed by the Chinese government. The imposition of","page_number":396,"box":{"x":116,"y":180,"width":740,"height":12}},{"id":"6ce2e6a2-3d85-4243-8fc3-fecccdd94333","block_type":"box","text":"currency controls may negatively impact performance and liquidity of the Funds as capital may become","page_number":396,"box":{"x":116,"y":196,"width":772,"height":12}},{"id":"1a4ce306-405b-40e7-9d80-72c9b8d8b8fe","block_type":"box","text":"trapped in the PRC. The Funds could be adversely affected by delays in, or a refusal to grant, any","page_number":396,"box":{"x":116,"y":211,"width":732,"height":12}},{"id":"fd687bd4-3af9-4e8a-8a9d-427bf1b6eefc","block_type":"box","text":"required governmental approval for repatriation of capital, as well as by the application to the Funds of","page_number":396,"box":{"x":117,"y":227,"width":762,"height":12}},{"id":"261995f0-e475-41ee-b621-fe799e48bc01","block_type":"box","text":"any restrictions on investments. Investing in entities either in, or which have a substantial portion of","page_number":396,"box":{"x":116,"y":242,"width":740,"height":12}},{"id":"da0663ca-a6ef-4565-9573-b84d7ed9c8ca","block_type":"box","text":"their operations in, the PRC may require the Funds to adopt special procedures, seek local","page_number":396,"box":{"x":116,"y":258,"width":680,"height":12}},{"id":"46f1afe8-eee0-4812-808d-e80cbea05f99","block_type":"box","text":"government approvals or take other actions, each of which may involve additional costs and delays to","page_number":396,"box":{"x":116,"y":273,"width":759,"height":12}},{"id":"c1b474a0-a239-45c2-9074-f659edb84286","block_type":"box","text":"the Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and","page_number":396,"box":{"x":116,"y":289,"width":743,"height":12}},{"id":"d13fa0bf-2e3c-45bc-903e-a5e8d069f143","block_type":"box","text":"RMB, as well as in connection with conversions between the two separate types of RMB, the onshore","page_number":396,"box":{"x":117,"y":304,"width":758,"height":12}},{"id":"eac8f68d-98af-4ee8-a029-e2e2629c12fc","block_type":"box","text":"RMB (“CNY”) and the offshore RMB (“CNH”).","page_number":396,"box":{"x":117,"y":320,"width":340,"height":12}},{"id":"e03a718a-7478-435f-a8c3-2bc89e257523","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their","page_number":396,"box":{"x":117,"y":351,"width":727,"height":12}},{"id":"47475f20-4010-4b14-9568-49d150df5f60","block_type":"box","text":"structure as a result of foreign ownership restrictions. In a VIE structure, a Chinese operating company","page_number":396,"box":{"x":116,"y":366,"width":767,"height":12}},{"id":"77700131-9063-407c-89af-244c89c4b582","block_type":"box","text":"establishes a shell company in another jurisdiction to issue stock to public shareholders. When a VIE","page_number":396,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"7cfbf17e-c9bd-43e8-9c95-c75ebef8b4a2","block_type":"box","text":"structure is used by a Chinese company to list its stock in the U.S., instead of owning the equity","page_number":396,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"1e9c2427-7c2c-49ff-960d-58d2f9061f42","block_type":"box","text":"securities of the Chinese company, the U.S.-listed shell company directly or indirectly enters into","page_number":396,"box":{"x":116,"y":413,"width":721,"height":12}},{"id":"a540ad77-5ad2-4c2f-aa41-f523b3872b6c","block_type":"box","text":"contracts with the Chinese operating company under Chinese law. These contracts provide the U.S.-","page_number":396,"box":{"x":116,"y":428,"width":749,"height":12}},{"id":"cc25af25-6e5f-4ad4-8fa5-23e63e647339","block_type":"box","text":"listed shell company with only economic exposure to the Chinese company and do not represent","page_number":396,"box":{"x":117,"y":444,"width":722,"height":12}},{"id":"8341b34f-e4b5-480e-a945-cd8d5929d418","block_type":"box","text":"equity ownership in the operating company.","page_number":396,"box":{"x":116,"y":459,"width":329,"height":12}},{"id":"496ac1c2-d018-45a6-8f9a-3378609c7f8f","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have","page_number":396,"box":{"x":116,"y":490,"width":770,"height":12}},{"id":"6a2151f3-20f1-4079-8216-ac54c1591a06","block_type":"box","text":"not been formally recognized under Chinese law. The Chinese government has provided guidance to","page_number":396,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"73d61a1a-1a29-4463-8604-651445556dc6","block_type":"box","text":"and placed restrictions on Chinese-based companies raising capital offshore, including through VIEs.","page_number":396,"box":{"x":116,"y":521,"width":755,"height":12}},{"id":"c91cd3ef-bb94-49b8-9e7a-c8d46dee1903","block_type":"box","text":"In 2023, the China Securities Regulatory Commission (“CSRC”) released new rules that permit the use","page_number":396,"box":{"x":117,"y":537,"width":768,"height":12}},{"id":"616fa07f-f36c-486d-95f3-6a9dac31c05a","block_type":"box","text":"of VIE structures, provided they abide by Chinese laws and register with the CSRC. The rules,","page_number":396,"box":{"x":116,"y":552,"width":705,"height":12}},{"id":"aae574a0-911a-423f-a84a-a1c24cbc4889","block_type":"box","text":"however, may cause Chinese companies to undergo greater scrutiny and add costs to VIE structures.","page_number":396,"box":{"x":117,"y":568,"width":759,"height":12}},{"id":"6e7599b2-2b9c-4cc4-8aa4-276af15e58ca","block_type":"box","text":"Intervention, rulemaking or guidance by the Chinese government with respect to VIE structures or the","page_number":396,"box":{"x":117,"y":583,"width":758,"height":12}},{"id":"3d0224c5-5757-43d7-a835-446acc85cda5","block_type":"box","text":"non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":396,"box":{"x":117,"y":599,"width":742,"height":12}},{"id":"56deadc2-15fd-4375-9cdd-f5cedf940b10","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with","page_number":396,"box":{"x":117,"y":614,"width":756,"height":12}},{"id":"0a4e72a9-acf1-4ba6-81d1-c06faa8f446c","block_type":"box","text":"the Chinese company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement","page_number":396,"box":{"x":116,"y":630,"width":762,"height":12}},{"id":"778636eb-1c26-48fc-91cc-c95f0cfd8f89","block_type":"box","text":"would likely be subject to Chinese law and jurisdiction, and remedies available to the U.S.-listed shell","page_number":396,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"fbcc80da-9b29-472f-b551-704efa3a3325","block_type":"box","text":"company are uncertain and could be ineffective. In addition to the risk of government intervention,","page_number":396,"box":{"x":116,"y":661,"width":724,"height":12}},{"id":"9a78d469-891b-4135-9d43-87669d4bf94d","block_type":"box","text":"investments through a VIE structure are subject to the risk that the China-based company (or its","page_number":396,"box":{"x":117,"y":676,"width":711,"height":12}},{"id":"a8cd9ba1-eec3-4a47-9dc0-deaa35ed7583","block_type":"box","text":"officers, directors, or Chinese equity owners) may breach those contractual arrangements, or Chinese","page_number":396,"box":{"x":116,"y":692,"width":757,"height":12}},{"id":"7ff4c80d-5351-4569-9c1a-38f446264e3b","block_type":"box","text":"law changes in a way that adversely affects the enforceability of these arrangements, or those","page_number":396,"box":{"x":117,"y":707,"width":697,"height":12}},{"id":"2a2cbfcb-a4bf-45e7-9538-dda5c56e2e5a","block_type":"box","text":"contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer","page_number":396,"box":{"x":116,"y":723,"width":703,"height":12}},{"id":"d54cac2d-d938-4fc5-b986-2a0c84bdd51e","block_type":"box","text":"significant losses on its investments through a VIE structure with little or no recourse available. Any","page_number":396,"box":{"x":116,"y":738,"width":736,"height":12}},{"id":"f4ebb7d9-dc3f-4d72-8007-0af45297f9c9","block_type":"box","text":"change in the operations of entities in a VIE structure, the status of VIE contractual arrangements or","page_number":396,"box":{"x":116,"y":754,"width":743,"height":12}},{"id":"93a14431-a698-4242-a6b1-0f8ce2cd57e0","block_type":"box","text":"the legal or regulatory environment in China, generally or with respect to specific industries, could","page_number":396,"box":{"x":116,"y":769,"width":723,"height":12}},{"id":"b0b63131-dd29-49f3-98bb-44837a087a6f","block_type":"box","text":"result in significant, and possibly permanent and/or total, losses to a Fund.","page_number":396,"box":{"x":117,"y":785,"width":550,"height":12}},{"id":"bb7e13f5-3f26-406c-be7c-466467083fef","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that","page_number":396,"box":{"x":116,"y":816,"width":753,"height":12}},{"id":"d73368f9-3736-4021-a40f-0d5ab9f5da83","block_type":"box","text":"such growth rates will recur. Other economic challenges for China include indebtedness, weak","page_number":396,"box":{"x":116,"y":831,"width":706,"height":12}},{"id":"e31e6330-493b-4c2a-b173-5348d8c04c2e","block_type":"box","text":"consumer demand, trade tensions, and an aging population. China continues to face pressure from its","page_number":396,"box":{"x":116,"y":847,"width":763,"height":12}},{"id":"966a8766-27d0-4b60-986c-bd912826169c","block_type":"box","text":"trading partners over its exporting of its excess industrial capacity and overall approach to economic","page_number":396,"box":{"x":116,"y":862,"width":748,"height":12}},{"id":"6e564e2b-a41f-48bb-beb2-84422b9cbc4c","block_type":"box","text":"management. China’s economy is heavily dependent on export growth. Reduction in spending on","page_number":396,"box":{"x":117,"y":878,"width":727,"height":12}},{"id":"f05a10da-62ac-4b62-a4d9-2f91ba9f0b54","block_type":"box","text":"II-57","page_number":396,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"11eeb98c-3c63-45fa-97ee-39d5bd87c2ba","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":396,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"22fb00ff-d96d-4d1b-905f-fbcbdcdcf49f","block_type":"box","text":"Chinese products and services, supply chain diversification, institution of additional tariffs, sanctions or","page_number":397,"box":{"x":117,"y":87,"width":765,"height":12}},{"id":"9f002e8d-bf1e-4bf6-98b1-144138fbd539","block_type":"box","text":"other trade barriers (including as a result of heightened trade tensions between China and the United","page_number":397,"box":{"x":116,"y":102,"width":755,"height":13}},{"id":"4ab07a67-ef76-40e5-81ce-98392d12874b","block_type":"box","text":"States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":397,"box":{"x":116,"y":118,"width":688,"height":12}},{"id":"f7556a36-ebdc-4a49-93ac-c5b70daf92f6","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and","page_number":397,"box":{"x":116,"y":134,"width":762,"height":12}},{"id":"07fcb6ef-a82d-409f-b37a-1e691814502e","block_type":"box","text":"the companies in which a Fund invests. Certain Chinese companies (which may change from time to","page_number":397,"box":{"x":116,"y":149,"width":753,"height":12}},{"id":"7b5aa9dc-f695-48d7-a479-a580e49110a8","block_type":"box","text":"time) are directly or indirectly subject to economic or trade restrictions imposed by the U.S. or other","page_number":397,"box":{"x":116,"y":165,"width":741,"height":12}},{"id":"dec1290e-433f-4299-bbf9-06f1414edbe7","block_type":"box","text":"governments due to national security, human rights or other concerns of such government. For","page_number":397,"box":{"x":116,"y":180,"width":709,"height":12}},{"id":"2edacbe1-8243-4229-ad90-b4d236080181","block_type":"box","text":"example, certain foreign technology companies are subject to U.S. export controls as those companies","page_number":397,"box":{"x":116,"y":196,"width":769,"height":12}},{"id":"e269d8d8-8502-42e1-94cf-df5cc1158c47","block_type":"box","text":"are believed to pose a risk to U.S. interests. The U.S. also bans imports of goods produced in certain","page_number":397,"box":{"x":116,"y":211,"width":755,"height":12}},{"id":"dd074e45-dbd6-474b-8938-df396a39885b","block_type":"box","text":"regions of China or by certain Chinese companies due to concerns about forced labor. Such","page_number":397,"box":{"x":117,"y":227,"width":688,"height":12}},{"id":"4ab77f03-acb6-4fee-95e2-de818716cf8c","block_type":"box","text":"restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any","page_number":397,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"b04515ae-f167-4dbe-b0a4-e2f869388ac5","block_type":"box","text":"action that targets Chinese financial markets or securities exchanges could interfere with orderly","page_number":397,"box":{"x":116,"y":258,"width":719,"height":12}},{"id":"26b44409-f036-4986-bf70-326d51c23bb1","block_type":"box","text":"trading, delay settlement or cause market disruptions. Certain companies may be subject to economic","page_number":397,"box":{"x":116,"y":273,"width":762,"height":12}},{"id":"cca28a36-cb82-425f-948b-2e9cfb398408","block_type":"box","text":"or trade restrictions (but not investment restrictions) imposed by the U.S. or other governments due to","page_number":397,"box":{"x":116,"y":289,"width":761,"height":12}},{"id":"c3bb6610-5464-4801-9e25-797011c1c00b","block_type":"box","text":"national security, human rights or other concerns of such government. So long as these restrictions do","page_number":397,"box":{"x":117,"y":304,"width":764,"height":12}},{"id":"af5a693f-0738-4d8e-b6d7-5b16d317ca5c","block_type":"box","text":"not include restrictions on investments, the Fund may invest in such companies.","page_number":397,"box":{"x":117,"y":320,"width":599,"height":12}},{"id":"763927ec-0612-45de-8ae7-490289c715f4","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative","page_number":397,"box":{"x":116,"y":352,"width":760,"height":12}},{"id":"00393620-2292-4ee5-8be4-f4d569db81b3","block_type":"box","text":"guidance or enforcement, possibly with retroactive effect. The interpretation, applicability and","page_number":397,"box":{"x":116,"y":368,"width":695,"height":12}},{"id":"f731ea25-7e7b-45f5-a60c-5da7937b2a55","block_type":"box","text":"enforcement of such laws by PRC tax authorities are not as consistent and transparent as those of","page_number":397,"box":{"x":116,"y":383,"width":737,"height":12}},{"id":"5f6c264e-b90b-4fe4-b7a5-b26f9212c9cb","block_type":"box","text":"more developed nations, and may vary over time and from region to region. The application and","page_number":397,"box":{"x":117,"y":399,"width":716,"height":12}},{"id":"f6a3fc49-370e-44e9-9fe1-d3e22affdaac","block_type":"box","text":"enforcement of PRC tax rules could have a significant adverse effect on a Fund and its investors,","page_number":397,"box":{"x":116,"y":414,"width":727,"height":12}},{"id":"92ee8efa-2e23-4671-83cc-da35ab94fb90","block_type":"box","text":"particularly in relation to capital gains withholding tax imposed upon non-residents. In addition, the","page_number":397,"box":{"x":117,"y":430,"width":732,"height":12}},{"id":"1ac7c315-6236-4b62-823c-7a06a29da013","block_type":"box","text":"accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":397,"box":{"x":116,"y":445,"width":759,"height":12}},{"id":"fd9ffa6e-499f-4fd4-b5a7-870a78c7d499","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared","page_number":397,"box":{"x":117,"y":461,"width":757,"height":12}},{"id":"39e9610e-35d8-4ea8-bba1-21e5223ff642","block_type":"box","text":"in accordance with PRC accounting standards and practice and those prepared in accordance with","page_number":397,"box":{"x":117,"y":476,"width":739,"height":12}},{"id":"fe859819-4e22-4a71-a488-f067308138ec","block_type":"box","text":"international accounting standards.","page_number":397,"box":{"x":117,"y":492,"width":264,"height":12}},{"id":"6aa2f9e7-385a-41dd-81c2-f7bc1feb86eb","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the","page_number":397,"box":{"x":117,"y":524,"width":767,"height":13}},{"id":"c5c63314-75ed-4073-82a8-26cdd1191790","block_type":"box","text":"country may be subject to other public health threats, infectious illnesses, diseases or similar issues in","page_number":397,"box":{"x":116,"y":540,"width":763,"height":12}},{"id":"f4c41444-d0c6-46cc-baf7-f9aba659aba4","block_type":"box","text":"the future. Any spread of an infectious illness, public health threat or similar issue could reduce","page_number":397,"box":{"x":116,"y":555,"width":709,"height":13}},{"id":"5a9141af-9813-4d80-9cc8-e571383ed153","block_type":"box","text":"consumer demand or economic output, result in market closures, travel restrictions or quarantines, and","page_number":397,"box":{"x":116,"y":571,"width":770,"height":12}},{"id":"ccfdde94-daa1-4cde-82c8-d65cfc0fba4a","block_type":"box","text":"generally have a significant impact on the Chinese economy, which in turn could adversely affect a","page_number":397,"box":{"x":116,"y":586,"width":738,"height":13}},{"id":"b04ff62a-e6c8-4c12-a460-1435c0957f1f","block_type":"box","text":"Fund’s investments.","page_number":397,"box":{"x":117,"y":602,"width":153,"height":10}},{"id":"0fc900c8-a59d-4772-9a66-d1ce252196ed","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":397,"box":{"x":116,"y":635,"width":308,"height":12}},{"id":"6b5606bb-4764-4934-aad8-16ff94c0ec16","block_type":"box","text":"General.","page_number":397,"box":{"x":117,"y":659,"width":62,"height":9}},{"id":"597d55a9-52c4-4cc3-b1b4-1f4fed8f2565","block_type":"box","text":"China A-shares are equity securities of companies domiciled in China that trade on Chinese","page_number":397,"box":{"x":180,"y":659,"width":692,"height":12}},{"id":"462a3036-de5f-48c2-b2ce-3a2ccdbe3fb5","block_type":"box","text":"stock exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange","page_number":397,"box":{"x":116,"y":674,"width":718,"height":12}},{"id":"45d9c779-1ddd-4541-b61b-d85a6f784473","block_type":"box","text":"(“SZSE”) and the Beijing Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the","page_number":397,"box":{"x":117,"y":690,"width":756,"height":12}},{"id":"64d301bf-1de3-4a1a-bbda-9b414f05f9bd","block_type":"box","text":"SSE and SZSE is not permitted, other than pursuant to available exceptions, such as through a","page_number":397,"box":{"x":116,"y":705,"width":707,"height":12}},{"id":"50c49d7a-6e30-489f-9d35-2e9851303847","block_type":"box","text":"qualified foreign investor approved pursuant to the relevant mainland China laws and regulations as","page_number":397,"box":{"x":116,"y":721,"width":740,"height":12}},{"id":"aabbcbaf-3a84-4642-af0c-75f55f5a4c2d","block_type":"box","text":"may be promulgated and/or amended from time to time (“QFI”).","page_number":397,"box":{"x":117,"y":736,"width":468,"height":12}},{"id":"f46790df-4d9b-49f3-801c-2ead7e3e55d2","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE","page_number":397,"box":{"x":117,"y":769,"width":723,"height":12}},{"id":"20e24e72-febf-4059-a33e-93429ded9557","block_type":"box","text":"(“Stock Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect","page_number":397,"box":{"x":117,"y":784,"width":706,"height":13}},{"id":"9cc779b3-e817-4109-b6c1-380ac701a428","block_type":"box","text":"program or the Shenzhen-Hong Kong Stock Connect program, as applicable (each, a “Stock Connect”","page_number":397,"box":{"x":117,"y":800,"width":759,"height":12}},{"id":"90f2b18d-ade3-4a92-93ea-d95a49bcd603","block_type":"box","text":"and collectively, “Stock Connects”). Each Stock Connect is a securities trading and clearing links","page_number":397,"box":{"x":116,"y":815,"width":717,"height":13}},{"id":"c0098705-c2f4-4156-aa2e-d9999dc1ed74","block_type":"box","text":"program established by The Stock Exchange of Hong Kong Limited (“SEHK”), the Hong Kong","page_number":397,"box":{"x":117,"y":831,"width":699,"height":12}},{"id":"0f309e08-0a38-4b7c-bd66-f861995f267f","block_type":"box","text":"Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable, and China","page_number":397,"box":{"x":116,"y":846,"width":700,"height":13}},{"id":"e317baa3-9b7a-4277-b0c2-eb3c74b216c6","block_type":"box","text":"Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":397,"box":{"x":116,"y":862,"width":753,"height":12}},{"id":"3fc23653-3a26-49dd-871b-64eccc5990b9","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on","page_number":397,"box":{"x":117,"y":877,"width":761,"height":13}},{"id":"8778c942-591e-4983-8bad-606edea0b009","block_type":"box","text":"II-58","page_number":397,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7b04f9b8-73ba-414c-a51f-18e29e77b2cc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":397,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"77923f6e-2d3b-418c-9dc7-4918f328595e","block_type":"box","text":"each market through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock","page_number":398,"box":{"x":116,"y":87,"width":746,"height":12}},{"id":"f15cb817-e185-49f4-854f-d426081486c5","block_type":"box","text":"Connect Securities listed on the SSE or SZSE, as applicable, would be effectuated through its Hong","page_number":398,"box":{"x":117,"y":102,"width":747,"height":13}},{"id":"b63e2464-ccea-4f01-8ec0-846307a6bd5b","block_type":"box","text":"Kong broker and a securities trading service company established by SEHK.","page_number":398,"box":{"x":117,"y":118,"width":572,"height":12}},{"id":"253373d3-69b6-4537-b3f0-d5005910676f","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock","page_number":398,"box":{"x":116,"y":149,"width":703,"height":12}},{"id":"990de82b-e7e7-4bf8-9bb5-6b8b1ed42ca6","block_type":"box","text":"Connect, trading through a Stock Connect’s Northbound Trading Link is subject to daily investment","page_number":398,"box":{"x":117,"y":165,"width":738,"height":12}},{"id":"58e7b6ad-408e-47d3-a571-1271d92323c4","block_type":"box","text":"quota limitations which require that buy orders for Stock Connect Securities be rejected once the daily","page_number":398,"box":{"x":116,"y":180,"width":761,"height":12}},{"id":"01a35b40-a38e-4bbb-8c36-40b5e4ab5c55","block_type":"box","text":"quota is exceeded (although a Fund will be permitted to sell their Stock Connect Securities regardless","page_number":398,"box":{"x":116,"y":196,"width":761,"height":12}},{"id":"3ddf01e8-632f-403a-950f-c37fe55e41fb","block_type":"box","text":"of the quota). These limitations may restrict a Fund from investing in Stock Connect Securities on a","page_number":398,"box":{"x":116,"y":211,"width":741,"height":12}},{"id":"25c5ee7c-248b-4657-8cb7-af46711fedaf","block_type":"box","text":"timely basis, which could affect the Fund’s ability to effectively pursue its investment strategy.","page_number":398,"box":{"x":116,"y":227,"width":698,"height":12}},{"id":"37e04ef2-7784-4576-9e95-88f41e967862","block_type":"box","text":"Investment quotas are also subject to change. Investment in Stock Connect Securities through a Stock","page_number":398,"box":{"x":117,"y":242,"width":767,"height":12}},{"id":"efb03a87-502c-4990-948c-a552ad0b5de1","block_type":"box","text":"Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund.","page_number":398,"box":{"x":117,"y":258,"width":741,"height":12}},{"id":"483111f0-4146-4bfe-937d-f00c8c977d7c","block_type":"box","text":"Stock Connect Securities purchased through Stock Connects generally may not be sold or otherwise","page_number":398,"box":{"x":116,"y":273,"width":753,"height":12}},{"id":"86fb82de-f0b1-4573-bc4a-0e708014f7a5","block_type":"box","text":"transferred other than through Stock Connects in accordance with applicable rules. For example, the","page_number":398,"box":{"x":116,"y":289,"width":752,"height":12}},{"id":"492b9c53-2461-4ede-a6e5-c12646710b60","block_type":"box","text":"PRC regulations require that in order for an investor to sell any Stock Connect Securities on a certain","page_number":398,"box":{"x":117,"y":304,"width":755,"height":12}},{"id":"4672b497-ba06-4f9e-900b-a3a413ef5013","block_type":"box","text":"trading day, there must be sufficient Stock Connect Securities in the investor’s account before the","page_number":398,"box":{"x":116,"y":320,"width":730,"height":12}},{"id":"4891e6a8-20c2-4097-9f8a-4ea61f30dd35","block_type":"box","text":"market opens on that day. If there are insufficient Stock Connect Securities in the investor’s account,","page_number":398,"box":{"x":117,"y":335,"width":751,"height":12}},{"id":"1fa9bb0e-dc20-4f3d-99f2-8a06af0f75b0","block_type":"box","text":"the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries out pre-trade checking","page_number":398,"box":{"x":116,"y":351,"width":765,"height":12}},{"id":"a06ca954-4c36-490a-bf6a-1a230c10c05e","block_type":"box","text":"on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market (“SZSE","page_number":398,"box":{"x":116,"y":366,"width":746,"height":12}},{"id":"9e2a6045-d52b-4eab-b045-f8a61e8535a1","block_type":"box","text":"Securities”) of its participants (i.e., stock brokers) to ensure that this requirement is satisfied. While","page_number":398,"box":{"x":116,"y":382,"width":736,"height":12}},{"id":"347f2f3b-f0ce-4269-a763-97a50581c629","block_type":"box","text":"shares must be designated as eligible to be traded under a Stock Connect, those shares may also lose","page_number":398,"box":{"x":116,"y":397,"width":770,"height":12}},{"id":"0f0c8245-0eae-4b9f-9726-93faa06aafce","block_type":"box","text":"such designation, and if this occurs, such shares may be sold but cannot be purchased through a","page_number":398,"box":{"x":116,"y":413,"width":728,"height":12}},{"id":"23391bc4-db67-4675-a5d7-7f6dd8031056","block_type":"box","text":"Stock Connect. In addition, Stock Connects will only operate on days when both the Chinese and Hong","page_number":398,"box":{"x":116,"y":428,"width":771,"height":12}},{"id":"541193f2-b958-44ac-84d2-538066b263b1","block_type":"box","text":"Kong markets are open for trading, and banking services are available in both markets on the","page_number":398,"box":{"x":117,"y":444,"width":698,"height":12}},{"id":"80e1f60d-08b0-451d-9e06-aa9df743cd01","block_type":"box","text":"corresponding settlement days. Therefore, an investment in Stock Connect Securities through a Stock","page_number":398,"box":{"x":116,"y":459,"width":763,"height":12}},{"id":"b0e0749e-ab58-46d0-89c1-1f7bdff74985","block_type":"box","text":"Connect may subject a Fund to a risk of price fluctuations on days when the Chinese market is open,","page_number":398,"box":{"x":117,"y":475,"width":754,"height":12}},{"id":"551c9d20-1ba8-45df-829a-58bded966db1","block_type":"box","text":"but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on the Stock","page_number":398,"box":{"x":117,"y":490,"width":745,"height":12}},{"id":"30b7c973-9d50-48fe-b514-259eea048879","block_type":"box","text":"Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will","page_number":398,"box":{"x":117,"y":506,"width":746,"height":12}},{"id":"b9304e5e-9111-4d58-9a03-d71624d7b2b0","block_type":"box","text":"only be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock","page_number":398,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"12fd2f66-2ea7-4556-bfc7-eb54a9598694","block_type":"box","text":"Connect Securities must be settled in RMB, investors must have timely access to a reliable supply of","page_number":398,"box":{"x":117,"y":537,"width":752,"height":12}},{"id":"f88ff117-2e1f-4c8a-872d-682d3401cfd0","block_type":"box","text":"offshore RMB, which cannot be guaranteed. There is also no assurance that RMB will not be subject to","page_number":398,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"a13650df-70a5-4ac3-8166-b19fa9272273","block_type":"box","text":"devaluation. Any devaluation of RMB could adversely affect a Fund’s investments. If a Fund holds a","page_number":398,"box":{"x":116,"y":568,"width":746,"height":12}},{"id":"f78fddcf-c802-4bbf-a3b7-188d46316efa","block_type":"box","text":"class of shares denominated in a local currency other than RMB, the Fund will be exposed to currency","page_number":398,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"7a459105-0b95-4da7-88e4-0612b29bd905","block_type":"box","text":"exchange risk if the Fund converts the local currency into RMB for investments in Stock Connect","page_number":398,"box":{"x":116,"y":599,"width":722,"height":12}},{"id":"a0e22cf0-5e99-4aa2-8fc5-cb3c851711e1","block_type":"box","text":"Securities. A Fund may also incur conversion costs.","page_number":398,"box":{"x":116,"y":614,"width":390,"height":12}},{"id":"76720afa-9582-49d9-82fa-98ce3c6bad37","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held","page_number":398,"box":{"x":116,"y":645,"width":722,"height":12}},{"id":"9ee445b1-3cfc-4399-94ea-a00ddbc5802f","block_type":"box","text":"through HKSCC as nominee on behalf of investors. The precise nature and rights of a Fund as the","page_number":398,"box":{"x":116,"y":661,"width":731,"height":12}},{"id":"c3975884-9d8b-4f7b-a3de-59d139680bc0","block_type":"box","text":"beneficial owner of the SSE Securities or SZSE Securities through HKSCC as nominee is not well","page_number":398,"box":{"x":117,"y":676,"width":725,"height":12}},{"id":"bb151847-5dd3-4750-b33f-b3b3fea20adc","block_type":"box","text":"defined under the PRC laws. There is a lack of a clear definition of, and distinction between, legal","page_number":398,"box":{"x":116,"y":692,"width":722,"height":12}},{"id":"ca777cbb-ca16-470b-9717-256fdcfc98d0","block_type":"box","text":"ownership and beneficial ownership under the PRC laws and there have been few cases involving a","page_number":398,"box":{"x":116,"y":707,"width":742,"height":12}},{"id":"6207fa80-74de-46e3-8438-fde88aaff1b1","block_type":"box","text":"nominee account structure in the PRC courts. The exact nature and methods of enforcement of the","page_number":398,"box":{"x":117,"y":723,"width":735,"height":9}},{"id":"e449ab7d-49f7-4dd5-a9a8-cb0af019979d","block_type":"box","text":"rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that HKSCC","page_number":398,"box":{"x":117,"y":738,"width":751,"height":12}},{"id":"38cac940-3cd2-42f6-81c5-b970ab62e794","block_type":"box","text":"becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or","page_number":398,"box":{"x":117,"y":754,"width":739,"height":12}},{"id":"f26f0b3d-2a41-4f43-8fb2-312597dd2e7f","block_type":"box","text":"SZSE Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the","page_number":398,"box":{"x":116,"y":769,"width":749,"height":12}},{"id":"9a19c76b-a3cc-4cae-8ea0-2a29b480fcf4","block_type":"box","text":"general assets of HKSCC available for general distribution to its creditors. Notwithstanding the fact that","page_number":398,"box":{"x":116,"y":785,"width":765,"height":12}},{"id":"2687f325-3466-4d42-acaf-145cc88a3527","block_type":"box","text":"HKSCC does not claim proprietary interests in the SSE Securities or SZSE Securities held in its","page_number":398,"box":{"x":117,"y":800,"width":709,"height":12}},{"id":"31beeea6-c82d-401e-aa82-206effe8237e","block_type":"box","text":"omnibus stock account in the CSDCC, the CSDCC as the share registrar for SSE- or SZSE-listed","page_number":398,"box":{"x":116,"y":816,"width":723,"height":12}},{"id":"95153544-d5c8-4093-8d7e-64b60551cdfd","block_type":"box","text":"companies will still treat HKSCC as one of the shareholders when it handles corporate actions in","page_number":398,"box":{"x":116,"y":831,"width":722,"height":12}},{"id":"2d834d64-df59-45ab-8dc3-5ad643bd0ba5","block_type":"box","text":"respect of such SSE Securities or SZSE Securities. HKSCC monitors the corporate actions affecting","page_number":398,"box":{"x":117,"y":847,"width":749,"height":12}},{"id":"c53ae68e-d1ba-4aed-84bc-4866959c932b","block_type":"box","text":"SSE Securities and SZSE Securities and keeps participants of Central Clearing and Settlement","page_number":398,"box":{"x":116,"y":862,"width":712,"height":12}},{"id":"f892d4e5-5c0b-48cf-8b6b-cde36e846312","block_type":"box","text":"System (“CCASS”) informed of all such corporate actions that require CCASS participants to take","page_number":398,"box":{"x":116,"y":878,"width":729,"height":12}},{"id":"d8a3b1ba-584b-4dd2-a125-f45a125effeb","block_type":"box","text":"II-59","page_number":398,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c433c58e-5bf4-4878-9ac3-fffbe3ffdcb9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":398,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3e5520b5-258a-479c-b0ff-fb24328501b1","block_type":"box","text":"steps in order to participate in them. Investors may only exercise their voting rights by providing their","page_number":399,"box":{"x":116,"y":87,"width":750,"height":12}},{"id":"4ad9624f-8ea8-402d-b614-ecc5af6f71a7","block_type":"box","text":"voting instructions to HKSCC through participants of CCASS. All voting instructions from CCASS","page_number":399,"box":{"x":116,"y":102,"width":724,"height":13}},{"id":"8e11ee56-20ad-4f20-94e7-bce4d534a338","block_type":"box","text":"participants will be consolidated by HKSCC, who will then submit a combined single voting instruction","page_number":399,"box":{"x":117,"y":118,"width":757,"height":12}},{"id":"90b3a07f-0a45-4c7c-a371-01d95df80064","block_type":"box","text":"to the relevant SSE- or SZSE-listed company. As a result, a Fund may suffer difficulties or delays in","page_number":399,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"92627236-2dfa-4483-a04d-4e40839a0a27","block_type":"box","text":"enforcing its rights in SSE Securities or SZSE Securities.","page_number":399,"box":{"x":116,"y":149,"width":427,"height":12}},{"id":"60a4ccf4-e7b3-47c0-a46c-f2848461be2f","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any","page_number":399,"box":{"x":117,"y":180,"width":728,"height":12}},{"id":"90ed0edb-4f76-4e4d-bcbf-c53b19b31f16","block_type":"box","text":"nationality who suffer pecuniary losses as a result of default of a licensed intermediary or authorized","page_number":399,"box":{"x":117,"y":196,"width":747,"height":12}},{"id":"0ea5bce6-ac51-48da-ac49-17de4679c074","block_type":"box","text":"financial institution in relation to exchange-traded products in Hong Kong. For defaults occurring on or","page_number":399,"box":{"x":116,"y":211,"width":760,"height":12}},{"id":"3b55d686-7b31-4d47-90b7-26ad67b780be","block_type":"box","text":"after January 1, 2020, Hong Kong’s Investor Compensation Fund covers investors’ losses in relation to","page_number":399,"box":{"x":116,"y":227,"width":769,"height":12}},{"id":"a06ae313-b506-4d2f-a00b-999e40836313","block_type":"box","text":"securities (i) that are traded on the SSE or the SZSE and (ii) in respect of which an order for sale or","page_number":399,"box":{"x":116,"y":242,"width":743,"height":12}},{"id":"435175d6-2642-49ef-a96a-4716c1089541","block_type":"box","text":"purchase is permitted to be routed through the Northbound Trading Link of a Stock Connect. On the","page_number":399,"box":{"x":117,"y":258,"width":746,"height":12}},{"id":"736dff03-0143-4f50-9ccd-bab87941db4a","block_type":"box","text":"other hand, since a Fund carries out Northbound trading through securities brokers in Hong Kong but","page_number":399,"box":{"x":116,"y":273,"width":756,"height":12}},{"id":"15c0f326-e4be-44d3-b537-bf07b6b54a9c","block_type":"box","text":"not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the PRC.","page_number":399,"box":{"x":117,"y":289,"width":722,"height":12}},{"id":"2cd66e90-fa02-404c-a0d2-da8a19fbdf1f","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information","page_number":399,"box":{"x":117,"y":320,"width":737,"height":12}},{"id":"98ee2054-a679-47ad-9931-f7bfc3177f22","block_type":"box","text":"technology capability, risk management and other requirements as may be specified by the relevant","page_number":399,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"ad2098bd-9952-4f1b-8613-eead4e457d81","block_type":"box","text":"exchange and/or clearing house. Further, the “connectivity” in Stock Connects requires routing of","page_number":399,"box":{"x":116,"y":351,"width":725,"height":12}},{"id":"2075cdd1-a292-4a72-b0e8-76461fa0e50c","block_type":"box","text":"orders across the border of Hong Kong and the PRC. This requires the development of new","page_number":399,"box":{"x":116,"y":366,"width":687,"height":12}},{"id":"c44f3878-5fbd-4ca9-ba89-76b1e9b99084","block_type":"box","text":"information technology systems on the part of SEHK and exchange participants. There is no assurance","page_number":399,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"ed4cb192-845d-47ef-aef4-d1f26378f880","block_type":"box","text":"that the systems of SEHK and market participants will function properly or will continue to be adapted","page_number":399,"box":{"x":116,"y":397,"width":757,"height":12}},{"id":"c325b355-2447-4853-82b6-f671e20f74fe","block_type":"box","text":"to changes and developments in both markets. In the event that the relevant systems fail to function","page_number":399,"box":{"x":116,"y":413,"width":747,"height":12}},{"id":"9f00cf86-b7e4-49b2-ad27-518f4ad32d54","block_type":"box","text":"properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":399,"box":{"x":117,"y":428,"width":667,"height":12}},{"id":"68469ccb-84be-41fa-95f2-87b896b4f614","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen","page_number":399,"box":{"x":116,"y":459,"width":737,"height":12}},{"id":"ed57b431-fb25-42de-b695-872f560481ee","block_type":"box","text":"Hong Kong Stock Connect program launched in December 2016. Each program does not have an","page_number":399,"box":{"x":117,"y":475,"width":733,"height":12}},{"id":"d012e936-740a-4d82-9175-5cddf9ef05a7","block_type":"box","text":"extensive operating history. New or revised regulations may be issued from time to time by the","page_number":399,"box":{"x":116,"y":490,"width":707,"height":12}},{"id":"4cad7d74-4b4c-48e6-a5b4-1f2d8cee5527","block_type":"box","text":"regulators and stock exchanges in China and Hong Kong in connection with operations, legal","page_number":399,"box":{"x":117,"y":506,"width":695,"height":12}},{"id":"1526267d-0500-409b-8838-1c1fc5b6e078","block_type":"box","text":"enforcement and cross-border trades under Stock Connects. In addition, there can be no assurance","page_number":399,"box":{"x":116,"y":521,"width":748,"height":11}},{"id":"604dea66-57e8-4e70-a104-a2807d444616","block_type":"box","text":"that Stock Connect will not be discontinued. A Fund may be adversely affected as a result of such","page_number":399,"box":{"x":116,"y":537,"width":731,"height":12}},{"id":"5fe912e3-db1c-4937-a183-9d82d69e1775","block_type":"box","text":"changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":399,"box":{"x":116,"y":552,"width":714,"height":12}},{"id":"3be96cb2-c3d2-4b8e-a7f7-ca00867e94f3","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the","page_number":399,"box":{"x":116,"y":568,"width":727,"height":12}},{"id":"18cf7d88-a33c-465a-ab7a-03e8d4836c2e","block_type":"box","text":"relevant systems fail to function properly, trading in both markets through Stock Connects could be","page_number":399,"box":{"x":117,"y":583,"width":737,"height":12}},{"id":"bb3ab904-86bd-4af9-9ca2-b23ad711b7b7","block_type":"box","text":"disrupted and a Fund’s ability to achieve its investment objective may be adversely affected. In","page_number":399,"box":{"x":116,"y":599,"width":708,"height":12}},{"id":"d581aff7-3a14-4630-a949-1ee2b4a87f6f","block_type":"box","text":"addition, a Fund’s investments in Stock Connect Securities through Stock Connects are generally","page_number":399,"box":{"x":116,"y":614,"width":728,"height":12}},{"id":"af6ae288-72c1-46a4-b5e3-2e9d79e6526c","block_type":"box","text":"subject to Chinese securities regulations and listing rules, among other restrictions. Further, different","page_number":399,"box":{"x":116,"y":630,"width":751,"height":12}},{"id":"f3449d83-fc84-4af2-9f63-59f58dd5a8b5","block_type":"box","text":"fees, costs and taxes are imposed on foreign investors acquiring Stock Connect Securities through","page_number":399,"box":{"x":116,"y":645,"width":739,"height":12}},{"id":"c3e64cb4-1af8-4632-8b43-68af540ea892","block_type":"box","text":"Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":399,"box":{"x":116,"y":661,"width":722,"height":12}},{"id":"ce51b240-5082-4b48-ab9a-09fe7f1f8046","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":399,"box":{"x":116,"y":676,"width":618,"height":12}},{"id":"1bf05da0-27e4-4c55-b078-68b0359b184f","block_type":"box","text":"Suspension Risk.","page_number":399,"box":{"x":117,"y":707,"width":127,"height":12}},{"id":"787e91cd-dc06-48ae-8248-69dc443c7a76","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at","page_number":399,"box":{"x":251,"y":707,"width":620,"height":12}},{"id":"63f53564-e056-4d2a-86c5-26858bcaf190","block_type":"box","text":"times when the relevant SSE Securities and SZSE Securities may be sold or purchased on the","page_number":399,"box":{"x":116,"y":723,"width":704,"height":12}},{"id":"b4b7d56c-9a6c-49ae-ac3e-3c3be7a864e6","block_type":"box","text":"relevant Chinese stock exchange. The SSE Securities and SZSE Securities markets have a higher","page_number":399,"box":{"x":117,"y":738,"width":733,"height":12}},{"id":"05fadb34-b7be-45d1-904c-fb46e73db29e","block_type":"box","text":"propensity for trading suspensions than many other global equity markets. Each of the SEHK, SSE and","page_number":399,"box":{"x":117,"y":754,"width":765,"height":12}},{"id":"07c6ba3c-d75d-4115-b911-bbd0e64fbf00","block_type":"box","text":"SZSE reserves the right to suspend trading of SSE Securities and SZSE Securities purchased on the","page_number":399,"box":{"x":116,"y":769,"width":751,"height":12}},{"id":"8b68a640-3d31-4c66-a8b3-642ce9896db4","block_type":"box","text":"Stock Connects if necessary for ensuring an orderly and fair market and ensuring that risks are","page_number":399,"box":{"x":116,"y":785,"width":705,"height":12}},{"id":"e684c792-0bbe-43ca-8815-9a4cf4d02454","block_type":"box","text":"managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":399,"box":{"x":117,"y":800,"width":720,"height":12}},{"id":"c223e174-df9e-41bf-ab54-cf118deb20b1","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit","page_number":399,"box":{"x":117,"y":816,"width":722,"height":12}},{"id":"a2cecb83-1846-45cd-bee3-0833ee1f42ba","block_type":"box","text":"breakers” and other measures to halt or suspend Northbound trading. Where a suspension in the","page_number":399,"box":{"x":117,"y":831,"width":725,"height":12}},{"id":"ad024c30-fbd4-4073-937a-69b69cf2ac81","block_type":"box","text":"Northbound trading through Stock Connect is effected, the Fund’s ability to access the PRC market will","page_number":399,"box":{"x":117,"y":847,"width":769,"height":12}},{"id":"80305890-8525-4bbe-ba7f-11a6d8022f13","block_type":"box","text":"be adversely affected. Trading suspensions in certain stocks could lead to greater market execution","page_number":399,"box":{"x":117,"y":862,"width":745,"height":12}},{"id":"4216cd73-7ca2-4464-99bd-f13442f5b6f5","block_type":"box","text":"risk and costs for a Fund. The SSE and SZSE currently","page_number":399,"box":{"x":117,"y":878,"width":415,"height":12}},{"id":"41d2a430-5fb1-42c3-9c0f-2d8e6bc7f75b","block_type":"box","text":"apply a daily price limit, generally set at 10%,","page_number":399,"box":{"x":533,"y":878,"width":340,"height":12}},{"id":"d84095c4-7f8a-4647-bed3-f6312e5ec3ad","block_type":"box","text":"II-60","page_number":399,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"8602a855-374e-443b-b22c-71dfb1c60226","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":399,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"cd10a8fb-b4ae-4bcd-b9c1-14ecff9c7f6c","block_type":"box","text":"of the amount of fluctuation permitted in the prices of the relevant SSE Securities and SZSE Securities","page_number":400,"box":{"x":116,"y":87,"width":766,"height":12}},{"id":"eb7bba22-5e24-4bbf-a487-979b5e2e8a38","block_type":"box","text":"during a single trading day. The daily price limit refers to price movements only and does not restrict","page_number":400,"box":{"x":116,"y":102,"width":747,"height":13}},{"id":"2caacd02-ffed-4fc2-80d5-41b3639bda65","block_type":"box","text":"trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":400,"box":{"x":116,"y":118,"width":744,"height":12}},{"id":"0c15ea38-1ddd-4d1a-aa2d-e0c59035fcd1","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":400,"box":{"x":116,"y":134,"width":598,"height":12}},{"id":"2ac0f7a2-c7f4-4707-a67f-57a63f613551","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":400,"box":{"x":116,"y":165,"width":575,"height":12}},{"id":"91e176e7-d063-48a4-aead-25413469cf81","block_type":"box","text":"A Fund may invest","page_number":400,"box":{"x":691,"y":165,"width":144,"height":12}},{"id":"b32ca484-cb07-4438-ac1e-579f7ba456d7","block_type":"box","text":"directly in the domestic bond market in the PRC (the “China Interbank Bond Market”) through the","page_number":400,"box":{"x":116,"y":180,"width":724,"height":12}},{"id":"92461603-7415-4bcd-8788-750802291002","block_type":"box","text":"northbound trading of Bond Connect (“Bond Connect”). Bond Connect is an initiative launched in July","page_number":400,"box":{"x":117,"y":196,"width":755,"height":12}},{"id":"c64b5aed-1516-47ab-aeb3-2d22569f56a8","block_type":"box","text":"2017 for mutual bond market access between the PRC and Hong Kong, established by the China","page_number":400,"box":{"x":116,"y":211,"width":729,"height":12}},{"id":"39526236-62e3-4a48-81b4-8d722e230b77","block_type":"box","text":"Foreign Exchange Trade System & National Interbank Funding Centre (“CFETS”), China Central","page_number":400,"box":{"x":117,"y":227,"width":722,"height":12}},{"id":"7f90ff39-1b05-4cd9-a4d4-b1a0e98692dd","block_type":"box","text":"Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”), Hong Kong Exchanges","page_number":400,"box":{"x":117,"y":242,"width":752,"height":12}},{"id":"588f6e7f-baff-48ee-a1a4-0e9b70f5b50f","block_type":"box","text":"and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":400,"box":{"x":116,"y":258,"width":699,"height":12}},{"id":"058954c0-4271-44fd-bcbd-a0ce41d0032e","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the","page_number":400,"box":{"x":117,"y":273,"width":738,"height":12}},{"id":"dc0e02a1-fc3f-401d-85c6-b2ca75832265","block_type":"box","text":"China Interbank Bond Market through Bond Connect. Eligible foreign investors may submit trade","page_number":400,"box":{"x":117,"y":289,"width":721,"height":12}},{"id":"3f7e5209-a796-4aac-8b78-805ea94141ed","block_type":"box","text":"requests for bonds circulated in the China Interbank Bond Market through offshore electronic bond","page_number":400,"box":{"x":117,"y":304,"width":735,"height":12}},{"id":"8a6bb121-9e4f-4b5a-b6b5-ec04b3f05a2b","block_type":"box","text":"trading platforms (such as Tradeweb), which will in turn transmit their requests for quotation to CFETS.","page_number":400,"box":{"x":116,"y":320,"width":768,"height":12}},{"id":"8142ef2a-595e-494c-842f-3509fa942043","block_type":"box","text":"CFETS will send the requests for quotation to a number of approved onshore dealers (including market","page_number":400,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"c3c863a6-ac98-4873-bdeb-3a452a290f80","block_type":"box","text":"makers and others engaged in the market making business) in the PRC. The approved onshore","page_number":400,"box":{"x":117,"y":351,"width":715,"height":12}},{"id":"9f59fb1e-564b-4032-a556-f972fea84817","block_type":"box","text":"dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their responses to","page_number":400,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"edeb5dde-512c-460d-b8a0-2f399e387ca4","block_type":"box","text":"those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":400,"box":{"x":116,"y":382,"width":759,"height":12}},{"id":"3353039a-4163-42d9-a025-56c13b8bb591","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":400,"box":{"x":116,"y":397,"width":603,"height":12}},{"id":"318fd475-38dd-4647-bdc0-9800cf296a02","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect","page_number":400,"box":{"x":116,"y":428,"width":761,"height":12}},{"id":"f9ecb3f3-84ae-42ff-9aa9-aa209b08db0c","block_type":"box","text":"will be effected through the settlement and custody link between CMU, as an offshore custody agent,","page_number":400,"box":{"x":116,"y":444,"width":755,"height":12}},{"id":"d84dee2f-979d-46d1-a612-8d99a30f0ee6","block_type":"box","text":"and CDCC and SCH, as onshore custodians and clearing institutions in the PRC. Under the settlement","page_number":400,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"3c27b258-1031-419f-a2b4-a978cb50a66a","block_type":"box","text":"link, CDCC or SCH will effect gross settlement of confirmed trades onshore and CMU will process","page_number":400,"box":{"x":117,"y":475,"width":730,"height":12}},{"id":"080d8ebb-c188-4935-8b42-a4a3f28b2e83","block_type":"box","text":"bond settlement instructions from CMU members on behalf of eligible foreign investors in accordance","page_number":400,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"e2449f36-89cc-4ff2-89f6-23832fd08d68","block_type":"box","text":"with its relevant rules. Since the introduction in August 2018 of delivery versus payment (DVP)","page_number":400,"box":{"x":116,"y":506,"width":705,"height":12}},{"id":"9482cf9f-031d-405b-9a12-8054a667cbde","block_type":"box","text":"settlement in respect of Bond Connect, the movement of cash and securities is carried out","page_number":400,"box":{"x":116,"y":521,"width":675,"height":12}},{"id":"aa71ed3b-5bdc-4639-9edc-ec9a8f48fbd6","block_type":"box","text":"simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":400,"box":{"x":116,"y":537,"width":743,"height":12}},{"id":"2a0b19f0-555e-44f5-a324-65e6d9725f8d","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee","page_number":400,"box":{"x":116,"y":552,"width":759,"height":12}},{"id":"ce1e16b0-ef61-4f78-b96f-c789cdd579fa","block_type":"box","text":"accounts with the onshore custody agent recognized by the People’s Bank of China (","page_number":400,"box":{"x":116,"y":568,"width":631,"height":12}},{"id":"b41a245f-7e83-4645-93eb-72efa4c231a3","block_type":"box","text":"i.e.","page_number":400,"box":{"x":749,"y":568,"width":20,"height":9}},{"id":"d1fae28f-46e0-4e20-a047-06124a397d0d","block_type":"box","text":", CDCC and","page_number":400,"box":{"x":772,"y":568,"width":94,"height":11}},{"id":"41d90437-7803-44c4-9dfd-e5572823cff1","block_type":"box","text":"SCH). All bonds traded by eligible foreign investors through Bond Connect will be registered in the","page_number":400,"box":{"x":116,"y":583,"width":734,"height":12}},{"id":"101a2c40-84c4-4ee3-a2ab-5bdcf41ee641","block_type":"box","text":"name of CMU, which will hold such bonds as a nominee owner. Therefore, a Fund will be exposed to","page_number":400,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"2bf827d0-83d2-42e6-bd8a-35f7cbc77e55","block_type":"box","text":"custody risks with respect to CMU. In the remote event of a CDCC or SCH default, CMU’s liabilities in","page_number":400,"box":{"x":116,"y":614,"width":759,"height":12}},{"id":"07f331e7-2cde-4e0e-a052-32aadfb496e3","block_type":"box","text":"Bond Connect bonds under its market contracts with clearing participants will be limited to assisting","page_number":400,"box":{"x":117,"y":630,"width":741,"height":12}},{"id":"26665215-133a-4d65-8720-b12442661c49","block_type":"box","text":"clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer delay in the","page_number":400,"box":{"x":116,"y":645,"width":758,"height":12}},{"id":"ccd878b7-4ebd-45cf-9c75-94376fddaf87","block_type":"box","text":"recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":400,"box":{"x":117,"y":661,"width":739,"height":12}},{"id":"0db6f29d-6551-4256-9144-d94f77b47569","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by","page_number":400,"box":{"x":116,"y":676,"width":733,"height":12}},{"id":"bba9d4f5-8f71-4972-85b3-9cdc6f790ac8","block_type":"box","text":"third parties, including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or","page_number":400,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"1861dc50-36d9-4a51-98dd-cfde9c96a784","block_type":"box","text":"errors on the part of such third parties.","page_number":400,"box":{"x":116,"y":707,"width":284,"height":12}},{"id":"d42dd7b0-5130-4328-b2b8-6a7cd8d97393","block_type":"box","text":"The precise nature and rights of a Fund as the benef","page_number":400,"box":{"x":116,"y":738,"width":384,"height":12}},{"id":"b30f9de1-24eb-43d1-ad33-230eb53ff51d","block_type":"box","text":"icial owner of the bonds traded in the China","page_number":400,"box":{"x":500,"y":738,"width":315,"height":10}},{"id":"8beef779-7bb5-455d-ae60-d73cc4ca9875","block_type":"box","text":"Interbank Bond Market through CMU as nominee is","page_number":400,"box":{"x":117,"y":754,"width":374,"height":12}},{"id":"6136260d-ffa1-4bb1-ad71-3065d172313f","block_type":"box","text":"not well-defined under PRC law. There is a lack of a","page_number":400,"box":{"x":497,"y":754,"width":377,"height":9}},{"id":"3e2abf6d-ae5f-4aea-8e55-9a703ac1406f","block_type":"box","text":"clear definition of, and distinction between, legal","page_number":400,"box":{"x":116,"y":769,"width":347,"height":12}},{"id":"8785a851-5350-4623-a5dc-ab9e4433b3c5","block_type":"box","text":"ownership and beneficial ownership under PRC law and","page_number":400,"box":{"x":469,"y":769,"width":407,"height":12}},{"id":"534e98e9-476f-49f2-b707-6e7afcf1ac56","block_type":"box","text":"there have been few cases involving a nominee account","page_number":400,"box":{"x":116,"y":785,"width":409,"height":12}},{"id":"2dd6ec52-38c2-449c-a298-12e6631359e0","block_type":"box","text":"structure in the PRC courts. The exact nature","page_number":400,"box":{"x":530,"y":785,"width":329,"height":9}},{"id":"8233dc4c-377d-46b0-b536-771e57e2aca2","block_type":"box","text":"and methods of enforcement of the rights and inte","page_number":400,"box":{"x":116,"y":800,"width":363,"height":12}},{"id":"d2a4a030-9ec3-4d6d-8254-004e6759ebac","block_type":"box","text":"rests of a Fund under PRC law are also uncertain.","page_number":400,"box":{"x":480,"y":800,"width":363,"height":10}},{"id":"2ca04c8c-ad2d-4610-9e84-f6ea8e1ff4e7","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China","page_number":400,"box":{"x":117,"y":831,"width":750,"height":12}},{"id":"cd2cae24-1557-4394-858e-7566900fc8b8","block_type":"box","text":"Interbank Bond Market may result in prices of certain bonds traded on such market fluctuating","page_number":400,"box":{"x":117,"y":847,"width":702,"height":12}},{"id":"ccbd50ae-3db7-46f4-84ed-e0113da67488","block_type":"box","text":"significantly. A Fund investing in such market is therefore subject to liquidity and volatility risks. The","page_number":400,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"d907be14-24eb-4e27-8ab3-72fbb9147605","block_type":"box","text":"bid-ask spreads of the prices of such securities may be large, and a Fund may therefore incur","page_number":400,"box":{"x":117,"y":878,"width":700,"height":12}},{"id":"0c2cc4de-7b78-4047-9054-f88a7b7dafe5","block_type":"box","text":"II-61","page_number":400,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"887c9a71-03d2-4978-b612-5e14bb911e2f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":400,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b83bc1db-b047-45fe-a8ea-81470e7e4ede","block_type":"box","text":"significant costs and may suffer losses when selling such investments. The bonds traded in the China","page_number":401,"box":{"x":116,"y":87,"width":759,"height":12}},{"id":"c14dc047-dfef-4b2e-839f-b249ea4c62d8","block_type":"box","text":"Interbank Bond Market may be difficult or impossible to sell, which may impact a Fund’s ability to","page_number":401,"box":{"x":117,"y":102,"width":722,"height":13}},{"id":"675064cb-b2a5-4c70-82b4-8fcaca1ad6a4","block_type":"box","text":"acquire or dispose of such securities at their expected prices.","page_number":401,"box":{"x":116,"y":118,"width":460,"height":12}},{"id":"24128103-c12b-4efa-b43a-ad80a992f0f4","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks.","page_number":401,"box":{"x":117,"y":150,"width":766,"height":12}},{"id":"620a7412-9e4d-4a12-9b18-e16195dac14f","block_type":"box","text":"The relevant rules and regulations are subject to change, which may have potential retrospective","page_number":401,"box":{"x":116,"y":166,"width":724,"height":12}},{"id":"2c959f1f-bcd5-4d5a-943f-dcf38e9aaded","block_type":"box","text":"effect, and there can be no assurance that Bond Connect will not be discontinued or abolished.","page_number":401,"box":{"x":116,"y":181,"width":711,"height":11}},{"id":"dbc1785f-4d56-4d2f-8f7b-02d862181404","block_type":"box","text":"Furthermore, the securities regimes and legal systems of China and Hong Kong differ significantly and","page_number":401,"box":{"x":117,"y":196,"width":764,"height":13}},{"id":"a1ada184-3479-4daf-84f5-843f1d7efadd","block_type":"box","text":"issues may arise based on these differences. In the event that the relevant authorities suspend","page_number":401,"box":{"x":117,"y":212,"width":709,"height":12}},{"id":"6231502a-50c6-4e72-9cd0-75658e8afeb0","block_type":"box","text":"account opening or trading on the China Interbank Bond Market, a Fund’s ability to invest in the China","page_number":401,"box":{"x":116,"y":227,"width":762,"height":13}},{"id":"8cfd6ff2-be85-470f-b7ff-4e6b7d32c742","block_type":"box","text":"Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability to","page_number":401,"box":{"x":117,"y":243,"width":716,"height":12}},{"id":"9143e076-6159-4170-a2cf-1dc667acf92d","block_type":"box","text":"achieve its investment objective will be negatively affected and, after exhausting other trading","page_number":401,"box":{"x":116,"y":259,"width":699,"height":12}},{"id":"069a7627-2aa3-4fde-9d66-3d9f5f939053","block_type":"box","text":"alternatives, the Fund may suffer substantial losses as a result. Further, if Bond Connect is not","page_number":401,"box":{"x":116,"y":274,"width":707,"height":12}},{"id":"f1afb95d-1391-483d-a096-8345b17c3edb","block_type":"box","text":"operating, a Fund may not be able to acquire or dispose of bonds through Bond Connect in a timely","page_number":401,"box":{"x":116,"y":290,"width":745,"height":12}},{"id":"10bda1bf-75d8-4318-af0a-5fb82f72596e","block_type":"box","text":"manner, which could adversely affect the Fund’s performance.","page_number":401,"box":{"x":117,"y":305,"width":467,"height":12}},{"id":"6aa00784-db59-44e8-91d6-3185e532f8bb","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and","page_number":401,"box":{"x":116,"y":337,"width":687,"height":12}},{"id":"a0599010-1c2b-4570-8b97-cd6913f54ef5","block_type":"box","text":"operational systems. There is no assurance that such systems will function properly or will continue to","page_number":401,"box":{"x":116,"y":352,"width":761,"height":13}},{"id":"a4c5504b-ef01-40f6-b3e7-a6d9115613ac","block_type":"box","text":"be adapted to changes and developments in the market. In the event that the relevant systems fail to","page_number":401,"box":{"x":117,"y":368,"width":753,"height":12}},{"id":"a8d67570-9d96-4a05-9c88-3f2afa2b0ca1","block_type":"box","text":"function properly, trading through Bond Connect may be disrupted. A Fund’s ability to trade through","page_number":401,"box":{"x":116,"y":384,"width":744,"height":12}},{"id":"d3962921-e89f-41c6-8780-f45d89ef8a11","block_type":"box","text":"Bond Connect (and hence to pursue its investment strategy) may therefore be adversely affected. In","page_number":401,"box":{"x":117,"y":399,"width":749,"height":12}},{"id":"7a814ae9-4a6a-411a-b5bd-608ff5d52681","block_type":"box","text":"addition, where a Fund invests in the China Interbank Bond Market through Bond Connect, it may be","page_number":401,"box":{"x":116,"y":415,"width":753,"height":12}},{"id":"14205bdf-6a39-4bc5-9f0e-5f6c1a13d335","block_type":"box","text":"subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":401,"box":{"x":116,"y":430,"width":607,"height":12}},{"id":"49254fb8-42fa-4f02-b384-5e0efc2cfb96","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not","page_number":401,"box":{"x":117,"y":462,"width":746,"height":12}},{"id":"050fad81-c289-4a0e-a5f6-a0a30eb72207","block_type":"box","text":"freely convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed","page_number":401,"box":{"x":116,"y":477,"width":740,"height":13}},{"id":"c9f5f362-7c82-4779-9ab6-76bc2ba6d980","block_type":"box","text":"that investors will have timely access to a reliable supply of RMB.","page_number":401,"box":{"x":116,"y":493,"width":490,"height":12}},{"id":"182b9d62-c68c-4ed3-bbb1-0bc43b59502f","block_type":"box","text":"Tax Risk — Withholding Income Tax Risk.","page_number":401,"box":{"x":118,"y":525,"width":317,"height":12}},{"id":"60162b66-008c-40b2-9235-98f94b576e39","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced","page_number":401,"box":{"x":116,"y":549,"width":697,"height":12}},{"id":"cb207260-58a6-49c4-bf76-b9a0cd81099b","block_type":"box","text":"dividends and interests from non-government bonds paid to a non-PRC tax resident enterprise, unless","page_number":401,"box":{"x":116,"y":564,"width":765,"height":12}},{"id":"faefdc21-9b91-4afc-bb92-413b79cd998d","block_type":"box","text":"the rate is reduced under an applicable tax treaty. From a technical perspective, withholding income","page_number":401,"box":{"x":116,"y":580,"width":746,"height":12}},{"id":"12880393-723f-4b14-8e6e-6a041a79342f","block_type":"box","text":"tax is also applicable to capital gains realized by foreign investors on the disposal of PRC equity","page_number":401,"box":{"x":116,"y":595,"width":717,"height":12}},{"id":"a6d8d5bf-defc-41f0-911f-ab6ecc51a85e","block_type":"box","text":"interests.","page_number":401,"box":{"x":117,"y":611,"width":72,"height":9}},{"id":"11f104ce-4d67-4b8c-a6cb-274cef7d8297","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":401,"box":{"x":116,"y":643,"width":735,"height":12}},{"id":"af618ebd-f9ef-4dec-ba1a-e2fd6b222a22","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and","page_number":401,"box":{"x":116,"y":675,"width":761,"height":12}},{"id":"59710bcf-ae6d-42eb-91d3-45a8fd78b7b4","block_type":"box","text":"the State Taxation Administration (“STA”), acting with State Council’s approval, jointly released","page_number":401,"box":{"x":116,"y":690,"width":703,"height":12}},{"id":"ee764b44-1b44-4ff0-b833-350814c7392e","block_type":"box","text":"Circular 79, which temporarily exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi","page_number":401,"box":{"x":117,"y":706,"width":760,"height":12}},{"id":"a596f57f-1d67-46a4-ba6a-d37f6d8b83b4","block_type":"box","text":"Qualified Foreign Institutional Investors (“RQFIIs”) from tax on capital gains derived from the trading","page_number":401,"box":{"x":116,"y":721,"width":740,"height":12}},{"id":"2e5c4fb3-328f-45f9-8a76-b3b428776dba","block_type":"box","text":"of shares and other equity interest investments on or after November 17, 2014. Subsequently,","page_number":401,"box":{"x":116,"y":737,"width":698,"height":12}},{"id":"74d4ddd3-3af9-478a-82c0-576d7f9aea39","block_type":"box","text":"Circulars 81 and 127 were issued to temporarily exempt tax on capital gains derived from trading of","page_number":401,"box":{"x":117,"y":752,"width":738,"height":12}},{"id":"a3d7030c-43b3-44b6-ab50-91e61accb947","block_type":"box","text":"equity securities of companies domiciled in the PRC that trade on Chinese stock exchanges","page_number":401,"box":{"x":116,"y":768,"width":682,"height":12}},{"id":"97380bb3-5fb0-4fe0-bdcd-27bf97989e1a","block_type":"box","text":"(“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong","page_number":401,"box":{"x":117,"y":783,"width":745,"height":12}},{"id":"203a9d80-4420-4f32-bcf2-e76a84c5efc1","block_type":"box","text":"Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”).","page_number":401,"box":{"x":116,"y":799,"width":741,"height":12}},{"id":"c2d9cf62-a35e-4669-a88d-2ef008e694f5","block_type":"box","text":"The duration of the temporary exemptions is not stated in the circulars and is subject to termination by","page_number":401,"box":{"x":116,"y":814,"width":758,"height":12}},{"id":"9d4c2533-52da-48a8-acd1-6884efbc5386","block_type":"box","text":"the PRC tax authorities with or without notice.","page_number":401,"box":{"x":116,"y":830,"width":344,"height":9}},{"id":"469835a1-65fd-4fcc-8133-a5298dd4107e","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign","page_number":401,"box":{"x":116,"y":862,"width":703,"height":12}},{"id":"5ad86431-770f-4354-a8fa-4069cf06a77a","block_type":"box","text":"institutional investors are temporarily exempt from withholding income tax with respect to interest","page_number":401,"box":{"x":117,"y":877,"width":723,"height":12}},{"id":"d719288c-dd42-4e83-85dd-efaa3b2cac6b","block_type":"box","text":"II-62","page_number":401,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"1c107ea3-a9c1-47b7-a9d3-cdc4e1e5e3a4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":401,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ef45f77f-8657-470e-989b-55882a69477f","block_type":"box","text":"income on bonds derived from the PRC bond market from November 7, 2018 to November 6, 2021.","page_number":402,"box":{"x":117,"y":87,"width":745,"height":11}},{"id":"6404b853-6356-4730-93d3-0fdfa668d366","block_type":"box","text":"On November 22, 2021, the MoF and STA issued Public Notice 34 to extend the temporary exemption","page_number":402,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"e75ec0d1-5f57-4923-8224-40dfbdac36b4","block_type":"box","text":"from November 7, 2021 to December 31, 2025. On January 15, 2026, it was announced via Public","page_number":402,"box":{"x":116,"y":118,"width":736,"height":12}},{"id":"4bddeff5-95a3-4b82-911a-c02a0380c468","block_type":"box","text":"Notice No. 5 of 2026 that the exemption was extended through December 31, 2027.","page_number":402,"box":{"x":117,"y":134,"width":628,"height":12}},{"id":"bc670678-2030-4cc2-a4e4-83227aeb9c1c","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":402,"box":{"x":118,"y":165,"width":250,"height":12}},{"id":"87d3a0c8-b056-4951-8493-9bd8c9f996f0","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the","page_number":402,"box":{"x":370,"y":165,"width":483,"height":12}},{"id":"0e6ca68c-fadf-497f-a923-9c8e455b3728","block_type":"box","text":"Fund, including PRC sourced interest income on non-government bonds and trading gains.","page_number":402,"box":{"x":117,"y":180,"width":674,"height":12}},{"id":"ec00127e-8ebd-4704-bdad-c66efc4e3b86","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":402,"box":{"x":116,"y":211,"width":735,"height":12}},{"id":"a8e96158-1615-4cb4-ba44-10fa50e25b29","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares","page_number":402,"box":{"x":116,"y":242,"width":741,"height":12}},{"id":"cc486f8b-0909-4aa8-89ad-e658c152b698","block_type":"box","text":"traded on the Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":402,"box":{"x":116,"y":258,"width":699,"height":9}},{"id":"ad0b28f3-589b-4979-8550-32907b64fc00","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign","page_number":402,"box":{"x":116,"y":289,"width":694,"height":12}},{"id":"7dce4ca6-0b36-4dc9-832c-4755de8856b1","block_type":"box","text":"institutional investors are temporarily exempt from VAT with respect to interest income on bonds","page_number":402,"box":{"x":117,"y":304,"width":718,"height":12}},{"id":"9e00ad70-f5db-4875-bb4d-681bf907977d","block_type":"box","text":"derived from the PRC bond market from November 7, 2018 to November 6, 2021. On November 22,","page_number":402,"box":{"x":116,"y":320,"width":750,"height":11}},{"id":"db1fdd0a-6c7f-41b7-b5e9-fcaa962719ed","block_type":"box","text":"2021, the MoF and STA jointly issued Public Notice 34 to extend the temporary exemption from","page_number":402,"box":{"x":116,"y":335,"width":714,"height":12}},{"id":"9e048abd-c5a7-46b9-b68e-debf189aee31","block_type":"box","text":"November 7, 2021 to December 31, 2025. However, on July 31, 2025, the MoF and STA jointly issued","page_number":402,"box":{"x":117,"y":351,"width":764,"height":12}},{"id":"0de1b6aa-4a75-492b-8356-333cb376ee16","block_type":"box","text":"Public Notice No 4 of 2025, stating that VAT will apply with respect to interest income derived from","page_number":402,"box":{"x":117,"y":366,"width":735,"height":12}},{"id":"1f83a73c-8230-445b-8d9c-83439bc09e74","block_type":"box","text":"treasury bonds, local government bonds and financial bonds issued on or after August 8, 2025. It is","page_number":402,"box":{"x":116,"y":382,"width":742,"height":12}},{"id":"b9530a1e-6c79-4d29-80de-89ca7bc69ea7","block_type":"box","text":"understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption for","page_number":402,"box":{"x":117,"y":397,"width":739,"height":12}},{"id":"1263cd5f-d8a1-4f26-87c7-48c7c1a9c325","block_type":"box","text":"foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":402,"box":{"x":116,"y":413,"width":668,"height":12}},{"id":"cdcfd22b-671f-4fa8-8060-1940464fe1f0","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement","page_number":402,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"df610df8-63c9-494b-a947-5830287cb97a","block_type":"box","text":"by the PRC tax authorities may result in a loss which could be material to the Fund. There is a risk the","page_number":402,"box":{"x":117,"y":459,"width":761,"height":12}},{"id":"b2c211cb-6404-483f-acea-9a3215bdc715","block_type":"box","text":"PRC tax authorities may withdraw the temporary tax exemptions in the future and seek to collect taxes","page_number":402,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"265f26da-540e-40a7-b4b3-e3eff270d3a0","block_type":"box","text":"realized on the sale of A-Shares or PCR sourced interest income on non-government bonds received","page_number":402,"box":{"x":117,"y":490,"width":756,"height":12}},{"id":"f541bdaf-bb27-4034-9b57-1a5e23229f43","block_type":"box","text":"by the Fund without giving any prior notice. If the temporary tax exemptions are withdrawn, any taxes","page_number":402,"box":{"x":117,"y":506,"width":755,"height":12}},{"id":"ac2a43e4-5a67-41ea-a68b-a50515e5e20f","block_type":"box","text":"may be directly borne by or indirectly passed on to the Fund and may result in a substantial impact to","page_number":402,"box":{"x":117,"y":521,"width":755,"height":12}},{"id":"a745b328-6659-4384-9606-2ace6a293977","block_type":"box","text":"its net asset value. As with any net asset value adjustment, investors may be advantaged or","page_number":402,"box":{"x":117,"y":537,"width":687,"height":12}},{"id":"5099d7ff-8b7f-4af6-9c44-3d767c8fa1b0","block_type":"box","text":"disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":402,"box":{"x":116,"y":552,"width":763,"height":12}},{"id":"5ed3653f-2ed2-4843-94b9-cc68e4c983ac","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":402,"box":{"x":116,"y":568,"width":494,"height":12}},{"id":"751eb333-681d-4cb4-a224-52c1afbb381e","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from","page_number":402,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"8bd9771a-9087-4873-9e35-832f1cf7fd47","block_type":"box","text":"time to time, make a provision for potential tax liabilities if in its opinion such provision is warranted or","page_number":402,"box":{"x":116,"y":614,"width":756,"height":12}},{"id":"032c21aa-fe5d-499b-84f4-27a47e574c5c","block_type":"box","text":"as further clarified by the PRC in notifications.","page_number":402,"box":{"x":116,"y":630,"width":345,"height":12}},{"id":"56d514c8-0bd5-440d-b47f-ec86b1ec5bf4","block_type":"box","text":"Investment in Other Investment Companies.","page_number":402,"box":{"x":116,"y":661,"width":350,"height":12}},{"id":"c5abdadd-e171-4dd3-91c0-7d37afc570d3","block_type":"box","text":"Each Fund may, subject to applicable law, invest in","page_number":402,"box":{"x":474,"y":661,"width":378,"height":12}},{"id":"91d1672b-5e23-4a2d-ba16-2d4fe61e3931","block_type":"box","text":"other investment companies (including investment companies managed by BlackRock and its","page_number":402,"box":{"x":116,"y":676,"width":694,"height":12}},{"id":"5fd5da9c-6250-4f0c-b075-b2b82f244613","block_type":"box","text":"affiliates), including money market funds and ETFs, which are typically open-end funds or unit","page_number":402,"box":{"x":116,"y":692,"width":697,"height":12}},{"id":"507d7b13-9eee-4c11-a52e-f4da60a8f340","block_type":"box","text":"investment trusts listed on a stock exchange. Under Section 12(d)(1)(A) of the Investment Company","page_number":402,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"a3cdf70c-772b-46b0-9150-9f1afef0b11f","block_type":"box","text":"Act, however, a Fund may invest up to 10% of its total assets in securities of other investment","page_number":402,"box":{"x":116,"y":723,"width":696,"height":12}},{"id":"4497097e-8191-4dbb-9e66-b679f6b723f9","block_type":"box","text":"companies (measured at the time of such investment). In addition, under Section 12(d)(1)(A) of the","page_number":402,"box":{"x":116,"y":738,"width":734,"height":12}},{"id":"3e3f118a-ab09-4c2c-a01b-ffe590397424","block_type":"box","text":"Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":402,"box":{"x":117,"y":754,"width":698,"height":12}},{"id":"b726f554-5012-473b-a897-5d3e7ccc8af5","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such","page_number":402,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"95aff588-52e5-483e-b450-2b3adc0ef790","block_type":"box","text":"investment company and a Fund may not invest in another investment company if such investment","page_number":402,"box":{"x":117,"y":785,"width":734,"height":12}},{"id":"d5542028-c67b-4936-86fd-3d36de6abf15","block_type":"box","text":"would cause more than 5% of the value of the Fund’s total assets to be invested in securities of such","page_number":402,"box":{"x":116,"y":800,"width":747,"height":10}},{"id":"e368e349-0928-4238-b441-505017ca3843","block_type":"box","text":"investment company. (These limits do not restrict a Feeder Fund from investing all of its assets in","page_number":402,"box":{"x":117,"y":816,"width":721,"height":12}},{"id":"2c29e484-8432-4ccc-a9af-7e9ae7ec4ad1","block_type":"box","text":"shares of its Master Portfolio.) In addition to the restrictions on investing in other investment companies","page_number":402,"box":{"x":116,"y":831,"width":771,"height":12}},{"id":"05f09b9d-6a70-4e1b-8c22-201f4f9e71fa","block_type":"box","text":"discussed above, under Section 12(d)(1)(C) of the Investment Company Act a Fund may not invest in","page_number":402,"box":{"x":116,"y":847,"width":759,"height":12}},{"id":"f4ebab78-9610-4bde-87d0-6dc8d251fc78","block_type":"box","text":"a registered closed-end investment company if such investment would cause the Fund and other","page_number":402,"box":{"x":116,"y":862,"width":724,"height":12}},{"id":"1e30ea37-c6e7-4a2a-80db-c1c0e76197e1","block_type":"box","text":"BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock","page_number":402,"box":{"x":117,"y":878,"width":760,"height":12}},{"id":"b83ad074-9898-46a8-bbf8-2abf97d42547","block_type":"box","text":"II-63","page_number":402,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"188f8d9b-469d-42bf-8e22-702efd838cf9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":402,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9c6ebbe2-41f3-409e-99df-391b03c0028a","block_type":"box","text":"of such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company","page_number":403,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"3a052ba3-475a-47c7-b51c-ace65005aa38","block_type":"box","text":"Act, these percentage limitations do not apply to investments in affiliated investment companies,","page_number":403,"box":{"x":116,"y":102,"width":719,"height":13}},{"id":"6262e7ce-f556-4a3d-ae10-68aed76c4c03","block_type":"box","text":"including ETFs, subject to certain conditions. In addition, a Fund may be able to rely on certain rules","page_number":403,"box":{"x":117,"y":118,"width":747,"height":12}},{"id":"bdd803a2-7bb8-4dcb-83ea-3df21d638051","block_type":"box","text":"under the Investment Company Act to invest in shares of money market funds or other investment","page_number":403,"box":{"x":117,"y":134,"width":733,"height":12}},{"id":"58823462-3836-47fa-9a3a-1a849dde14f2","block_type":"box","text":"companies beyond the statutory limits noted above, but subject to certain conditions.","page_number":403,"box":{"x":116,"y":149,"width":633,"height":12}},{"id":"d7ca879c-3493-4c3b-ae93-a1abf59c11e7","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and","page_number":403,"box":{"x":116,"y":177,"width":723,"height":12}},{"id":"4d350a85-a9f3-4980-b9d4-9f359e3684a7","block_type":"box","text":"selection risk.","page_number":403,"box":{"x":116,"y":192,"width":106,"height":10}},{"id":"3d092c43-7fc9-4bad-9a7a-4ee5ce197858","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an","page_number":403,"box":{"x":116,"y":220,"width":740,"height":12}},{"id":"1c7d7a7c-2257-4846-a7cb-d2288ad648a7","block_type":"box","text":"exchange may at times be acquired at market prices representing premiums to their NAVs. In addition,","page_number":403,"box":{"x":116,"y":236,"width":767,"height":12}},{"id":"2585c770-b69b-456d-977b-ec155ba9c35b","block_type":"box","text":"investment companies held by a Fund that trade on an exchange could trade at a discount from NAV,","page_number":403,"box":{"x":117,"y":251,"width":758,"height":12}},{"id":"ba00b75c-8682-4750-adb1-74b75e92bd57","block_type":"box","text":"and such discount could increase while the Fund holds the shares. If the market price of shares of an","page_number":403,"box":{"x":116,"y":267,"width":756,"height":12}},{"id":"306a2051-a102-42d9-b119-5f0a165203d5","block_type":"box","text":"exchange-traded investment company decreases below the price that the Fund paid for the shares and","page_number":403,"box":{"x":116,"y":282,"width":771,"height":12}},{"id":"fe88fa8e-8531-4550-85cd-88ca3bb580a3","block_type":"box","text":"the Fund were to sell its shares of such investment company at a time when the market price is lower","page_number":403,"box":{"x":116,"y":298,"width":757,"height":12}},{"id":"5ca80ad6-c7db-4b92-b293-3ce6481e129c","block_type":"box","text":"than the price at which it purchased the shares, the Fund would experience a loss.","page_number":403,"box":{"x":116,"y":313,"width":617,"height":12}},{"id":"38bdb112-98b5-4f7f-a5fb-553876254e8d","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment","page_number":403,"box":{"x":117,"y":341,"width":698,"height":12}},{"id":"a0ff4fb3-d382-4888-a743-cc50ab7777d8","block_type":"box","text":"companies, shareholders would bear both their proportionate share of expenses in the Fund and,","page_number":403,"box":{"x":116,"y":356,"width":727,"height":12}},{"id":"f93af157-f1fb-4a2b-9873-6163c23050fb","block_type":"box","text":"indirectly, the expenses of such investment companies. Such expenses, both at the Fund level and","page_number":403,"box":{"x":117,"y":371,"width":739,"height":12}},{"id":"73067385-75e7-4935-b189-aaf8692079e1","block_type":"box","text":"acquired investment company level, would include management and advisory fees, unless such fees","page_number":403,"box":{"x":116,"y":386,"width":753,"height":12}},{"id":"38b82de1-4651-4ced-8584-d1b8531ce2b1","block_type":"box","text":"have been waived by BlackRock. Please see the relevant Fund’s Prospectus to determine whether any","page_number":403,"box":{"x":117,"y":402,"width":769,"height":12}},{"id":"b561bcd8-4ad7-45b8-ad8a-bd4943ead968","block_type":"box","text":"such management and advisory fees have been waived by BlackRock. Investments by a Fund in","page_number":403,"box":{"x":116,"y":417,"width":724,"height":12}},{"id":"ce4bc591-6f15-424f-b220-3a92c18817ba","block_type":"box","text":"wholly owned investment entities created under the laws of certain countries will not be deemed an","page_number":403,"box":{"x":116,"y":432,"width":740,"height":12}},{"id":"ab31ee2e-a8f1-4772-a300-bf00783f2c55","block_type":"box","text":"investment in other investment companies. Pursuant to guidance issued by the staff of the","page_number":403,"box":{"x":117,"y":447,"width":674,"height":12}},{"id":"8d26a794-fe4d-4370-b463-ca7e4478fcfd","block_type":"box","text":"Commission, fees and expenses of money market funds used for the investment of cash collateral","page_number":403,"box":{"x":117,"y":463,"width":733,"height":12}},{"id":"dcffd9ad-2766-4564-8806-8cd9b18971d5","block_type":"box","text":"received in connection with loans of Fund securities are not treated as “acquired fund fees and","page_number":403,"box":{"x":117,"y":478,"width":706,"height":12}},{"id":"76a2f2bd-dfc7-4406-8eb8-80f8a21be10b","block_type":"box","text":"expenses,” which are fees and expenses charged by other investment companies and pooled","page_number":403,"box":{"x":116,"y":493,"width":701,"height":12}},{"id":"8347f81b-6210-402d-91e9-86c27ae70c45","block_type":"box","text":"investment vehicles in which a Fund invests a portion of its assets.","page_number":403,"box":{"x":117,"y":508,"width":498,"height":12}},{"id":"59117d18-4712-4fd0-a10c-e312e030d794","block_type":"box","text":"To the extent shares of a Fund are held by another f","page_number":403,"box":{"x":116,"y":536,"width":380,"height":12}},{"id":"d2f69cc6-6431-4af3-a38e-1a3db4774cf5","block_type":"box","text":"und, the ability of the Fund it","page_number":403,"box":{"x":497,"y":536,"width":205,"height":12}},{"id":"d97e7df0-de94-41f8-91da-84b23bb39c33","block_type":"box","text":"self to purchase other","page_number":403,"box":{"x":702,"y":536,"width":163,"height":12}},{"id":"378443ff-0bf4-44e7-a6ca-9ebc317ca462","block_type":"box","text":"funds may be limited. In addition, a fund-of-funds (","page_number":403,"box":{"x":116,"y":551,"width":365,"height":12}},{"id":"d1708e1a-55ea-4c89-bdf4-71f698340e02","block_type":"box","text":"e.g.","page_number":403,"box":{"x":482,"y":554,"width":25,"height":9}},{"id":"080d623d-eca7-4f2c-9597-5c44a1f27b18","block_type":"box","text":", an investment company that seeks to meet its","page_number":403,"box":{"x":510,"y":551,"width":347,"height":12}},{"id":"492907d3-9658-4b1c-8bfe-e318dee02661","block_type":"box","text":"investment objective by investing significantly in","page_number":403,"box":{"x":117,"y":566,"width":350,"height":12}},{"id":"0ccef4ba-4583-4262-a29a-6cd7772dc806","block_type":"box","text":"other investment companies)","page_number":403,"box":{"x":468,"y":566,"width":215,"height":12}},{"id":"822429c1-354a-43c1-aaad-6474265e953a","block_type":"box","text":"may be limited in its ability","page_number":403,"box":{"x":684,"y":566,"width":195,"height":12}},{"id":"30dca184-f3d9-4f8e-b61a-ba3a3cbe8d62","block_type":"box","text":"to purchase underlying funds if such underlying f","page_number":403,"box":{"x":116,"y":582,"width":353,"height":12}},{"id":"10a3de96-a05f-4cba-b135-751d60135ef1","block_type":"box","text":"unds themselves own shares of underlying funds.","page_number":403,"box":{"x":470,"y":582,"width":364,"height":12}},{"id":"ffb70524-9aaa-49e0-be98-b71624302cea","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate","page_number":403,"box":{"x":116,"y":609,"width":715,"height":12}},{"id":"ad2388c1-9c87-4afd-b1b1-8172fbbadab8","block_type":"box","text":"indirect foreign investment in developing countries, and certain of such countries, such as Thailand,","page_number":403,"box":{"x":117,"y":624,"width":743,"height":12}},{"id":"ea18a102-8d1d-435e-8a6c-772f0c993192","block_type":"box","text":"South Korea, Chile and Brazil, have specifically authorized such funds. There also are investment","page_number":403,"box":{"x":116,"y":640,"width":730,"height":12}},{"id":"fda98088-b72f-43bb-9a56-1016267a6f3d","block_type":"box","text":"opportunities in certain of such countries in pooled vehicles that resemble open-end investment","page_number":403,"box":{"x":116,"y":655,"width":713,"height":12}},{"id":"89f1a503-ab9a-4510-8c8f-5d900706fd44","block_type":"box","text":"companies. The restrictions on investments in securities of investment companies set forth above may","page_number":403,"box":{"x":116,"y":670,"width":760,"height":12}},{"id":"0d56aa92-5d19-492c-a54f-ac463bdfb9a7","block_type":"box","text":"limit opportunities for a Fund to invest indirectly in certain developing countries.","page_number":403,"box":{"x":117,"y":685,"width":585,"height":12}},{"id":"33da909c-d57e-4912-b24a-284deec204dc","block_type":"box","text":"Issuer Insolvency Risk.","page_number":403,"box":{"x":116,"y":713,"width":185,"height":12}},{"id":"5263f473-1c96-4d23-bd15-551045b659fb","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled","page_number":403,"box":{"x":307,"y":713,"width":532,"height":12}},{"id":"b06a5b3d-e366-4c1c-b33b-6a80be76986a","block_type":"box","text":"issuers involves a high degree of credit and market risk, which may be heightened during an economic","page_number":403,"box":{"x":117,"y":728,"width":761,"height":12}},{"id":"82d2c349-8e50-4c2c-ba3d-b9622d409a56","block_type":"box","text":"downturn or recession. Should an issuer of securities held by a Fund become involved in a bankruptcy","page_number":403,"box":{"x":116,"y":743,"width":760,"height":12}},{"id":"3e92030f-594a-4b6a-8ee0-4d65e6c76826","block_type":"box","text":"proceeding, reorganization or financial restructuring, a wide variety of considerations make an","page_number":403,"box":{"x":117,"y":759,"width":695,"height":12}},{"id":"dc433230-51f7-4adf-aa0d-bb4f0b53c938","block_type":"box","text":"evaluation of the outcome of the Fund’s exposure to the issuer uncertain.","page_number":403,"box":{"x":116,"y":774,"width":542,"height":12}},{"id":"55f8146f-97b4-4f14-8316-d424da8270de","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that","page_number":403,"box":{"x":117,"y":801,"width":764,"height":12}},{"id":"f70a9ddf-9bfb-4cef-ae09-f260d22c8185","block_type":"box","text":"a Fund will receive any interest payments on the securities of the issuer. A Fund will be subject to","page_number":403,"box":{"x":116,"y":817,"width":723,"height":12}},{"id":"718c78e9-b302-41d6-adbd-52ee76a80997","block_type":"box","text":"significant uncertainty as to whether the reorganization or restructuring will be completed, and the Fund","page_number":403,"box":{"x":116,"y":832,"width":772,"height":12}},{"id":"af1d53fc-8306-4a77-bdd8-c06f1c3ab591","block_type":"box","text":"may bear certain extraordinary expenses to protect and recover its investment. A Fund will also be","page_number":403,"box":{"x":117,"y":847,"width":735,"height":12}},{"id":"93d050c5-839e-4860-bed4-feed11397bca","block_type":"box","text":"subject to significant uncertainty as to when and in what manner and for what value the obligations","page_number":403,"box":{"x":116,"y":862,"width":737,"height":12}},{"id":"e4e84805-456a-43cf-a7cb-6344c3dde8ff","block_type":"box","text":"evidenced by the securities of the issuer held by the Fund will eventually be satisfied.","page_number":403,"box":{"x":116,"y":878,"width":637,"height":12}},{"id":"df3c45cf-c908-4a1c-b8bc-de2179689c93","block_type":"box","text":"II-64","page_number":403,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f142c008-b474-432c-8dcb-464c7e4d94be","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":403,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ce031397-e1de-4e92-a51f-14a4846e67da","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer","page_number":404,"box":{"x":117,"y":87,"width":741,"height":12}},{"id":"7a56b345-29d7-4b1b-a442-25b2c814073e","block_type":"box","text":"held by the Fund, there can be no assurance that the securities or other assets received by a Fund in","page_number":404,"box":{"x":117,"y":102,"width":748,"height":12}},{"id":"b59685ba-3ed2-4f8f-bda3-2fdff27da2d3","block_type":"box","text":"connection with such plan of reorganization or restructuring will not have a lower value or income","page_number":404,"box":{"x":116,"y":117,"width":717,"height":12}},{"id":"711438b6-84f5-4783-b184-f1db92f6ea8d","block_type":"box","text":"potential than may have been anticipated or no value. A Fund may be unable to enforce its claims or","page_number":404,"box":{"x":117,"y":132,"width":742,"height":13}},{"id":"59833ada-03f1-4640-afb7-aee28339e01d","block_type":"box","text":"rights in any collateral or may have its claims or security interest in any collateral challenged, disallowed","page_number":404,"box":{"x":117,"y":148,"width":767,"height":12}},{"id":"379d5f36-624a-4164-9705-e3d28bf6fcc7","block_type":"box","text":"or subordinated to the claims or security interests of other creditors. In addition, amendments to the U.S.","page_number":404,"box":{"x":116,"y":163,"width":772,"height":12}},{"id":"11404274-8978-4a8b-9fbd-5f57f47195f4","block_type":"box","text":"Bankruptcy Code or other relevant laws could alter the expected outcome or introduce greater","page_number":404,"box":{"x":117,"y":178,"width":695,"height":12}},{"id":"6bce6af4-d705-46db-86be-ea8512fcf871","block_type":"box","text":"uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":404,"box":{"x":117,"y":193,"width":716,"height":13}},{"id":"46bdbf11-ceb1-4375-89cb-d17fbe890a7a","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be","page_number":404,"box":{"x":117,"y":209,"width":716,"height":12}},{"id":"f3e1d6d0-0be6-4127-b51e-4cad53b94fb7","block_type":"box","text":"re-characterized or a Fund may receive different securities or other assets, including equity securities.","page_number":404,"box":{"x":117,"y":224,"width":752,"height":12}},{"id":"eea78604-7d59-49d5-b92a-07f43cea4ebf","block_type":"box","text":"These types of equity securities include, but are not limited to: common stock; preferred stock (including","page_number":404,"box":{"x":116,"y":239,"width":768,"height":12}},{"id":"b3009372-1830-43c7-991a-640600bffd88","block_type":"box","text":"convertible preferred stock); bonds, notes and debentures convertible into common or preferred stock;","page_number":404,"box":{"x":116,"y":254,"width":756,"height":13}},{"id":"b10682a9-dc50-430f-9ee9-26a543793daf","block_type":"box","text":"stock purchase warrants and rights; equity interests in trusts; and depositary receipts. Equity securities","page_number":404,"box":{"x":116,"y":270,"width":759,"height":12}},{"id":"89ac030e-e8b7-48bd-8c56-670a5ac35121","block_type":"box","text":"are subject to changes in value, and their value may be more volatile than those of other asset classes.","page_number":404,"box":{"x":116,"y":285,"width":764,"height":12}},{"id":"6adc9b8f-3b93-4ae0-bac2-3ec1e4a16c65","block_type":"box","text":"Holders of equity securities are subject to more risk than holders of debt securities because the status of","page_number":404,"box":{"x":117,"y":300,"width":771,"height":12}},{"id":"78af19e2-963c-43e2-bf6f-3f6f8a70fa9b","block_type":"box","text":"equity holders is subordinate to debtholders in an issuer’s capital structure. The value of equity","page_number":404,"box":{"x":116,"y":315,"width":701,"height":13}},{"id":"fb8a8534-27e7-40af-b348-1535ae117b9f","block_type":"box","text":"securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":404,"box":{"x":116,"y":331,"width":721,"height":12}},{"id":"c120724c-23d1-4bbf-ab19-943153ccf2fa","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":404,"box":{"x":116,"y":346,"width":764,"height":12}},{"id":"c94e9a88-7a1f-4561-ad10-06c56c7df742","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding,","page_number":404,"box":{"x":116,"y":378,"width":681,"height":12}},{"id":"c7ab71e9-e78e-4fd7-b4a7-0f820c6f7d06","block_type":"box","text":"reorganization or financial restructuring, the Fund may also be subject to additional risks associated with","page_number":404,"box":{"x":117,"y":393,"width":770,"height":12}},{"id":"73970d30-30a2-4529-8552-5e8db5909dd5","block_type":"box","text":"the assets received. One example of assets that a Fund could receive is an interest in one or more","page_number":404,"box":{"x":116,"y":408,"width":730,"height":12}},{"id":"d977ee32-2aa7-4496-94af-2042b62b8167","block_type":"box","text":"loans made to the issuer as part of a workout agreed to by a consortium of lienholders and creditors of","page_number":404,"box":{"x":117,"y":423,"width":756,"height":12}},{"id":"f00a8fcf-67c2-49d5-a57e-dba4cee1add2","block_type":"box","text":"the issuer. A Fund may receive such interests in loans to the extent permitted by the Investment","page_number":404,"box":{"x":116,"y":438,"width":710,"height":12}},{"id":"ec8fb556-3460-437a-a4cb-8cbfc0cfcc9d","block_type":"box","text":"Company Act.","page_number":404,"box":{"x":117,"y":453,"width":108,"height":12}},{"id":"b5a52f4b-dd3e-4f16-9e42-fa04a85c471d","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree","page_number":404,"box":{"x":116,"y":484,"width":756,"height":12}},{"id":"50ec68e7-6519-4ab6-8a8a-0ae495100425","block_type":"box","text":"of risk than investments in securities of issuers that have not undergone a reorganization or","page_number":404,"box":{"x":116,"y":499,"width":684,"height":12}},{"id":"639b80b5-7a5a-4e74-aa7f-a88a0ffb8d63","block_type":"box","text":"restructuring and may be subject to heavy selling or downward pricing pressure after completion of the","page_number":404,"box":{"x":117,"y":514,"width":765,"height":12}},{"id":"0277cd17-5f07-4590-8a10-e4089321f58f","block_type":"box","text":"reorganization or restructuring. The post-reorganization/restructuring assets and securities may also be","page_number":404,"box":{"x":117,"y":529,"width":771,"height":12}},{"id":"72913796-d6ef-408e-a78a-2b985463ccd5","block_type":"box","text":"illiquid and difficult to sell or value. If a Fund participates in negotiations with respect to a plan of","page_number":404,"box":{"x":117,"y":544,"width":715,"height":12}},{"id":"8fa3c06f-2f4d-432f-902e-ef5d27af9c10","block_type":"box","text":"reorganization or restructuring with respect to securities of the issuer held by a Fund, the Fund also","page_number":404,"box":{"x":117,"y":559,"width":741,"height":12}},{"id":"2dcd6b6a-535b-49a8-b1f8-c340a9dd35cf","block_type":"box","text":"may be restricted from disposing such securities for a period of time. If a Fund becomes involved in","page_number":404,"box":{"x":117,"y":574,"width":741,"height":12}},{"id":"99acddf0-8791-4a33-b421-2e0432104ee7","block_type":"box","text":"such proceedings, the Fund may have more active participation in the affairs of the issuer than that","page_number":404,"box":{"x":116,"y":589,"width":740,"height":12}},{"id":"e5027642-7484-403b-94c7-66e932dd289c","block_type":"box","text":"assumed generally by an investor.","page_number":404,"box":{"x":116,"y":604,"width":260,"height":12}},{"id":"7973166f-c22d-42d0-9ff6-c7ce3f87466d","block_type":"box","text":"Lease Obligations.","page_number":404,"box":{"x":116,"y":636,"width":145,"height":12}},{"id":"3ae52cc4-ea76-4f6e-beda-82eac1884613","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase","page_number":404,"box":{"x":262,"y":636,"width":568,"height":12}},{"id":"222fc060-dd1d-4125-9c7b-3fc639995602","block_type":"box","text":"contract, or a conditional sales contract (“lease","page_number":404,"box":{"x":116,"y":651,"width":344,"height":12}},{"id":"6e8445a2-cd11-4664-bc09-a16aaa751d2d","block_type":"box","text":"obligations”). The Manager will monitor the credit standing","page_number":404,"box":{"x":461,"y":651,"width":426,"height":12}},{"id":"b3bc2a37-bd54-4dc9-8204-5ee4349abe38","block_type":"box","text":"of each borrower and each entity providing credit support","page_number":404,"box":{"x":116,"y":666,"width":415,"height":12}},{"id":"e1a4a930-10c0-45e5-849d-51649f375745","block_type":"box","text":"and/or a put option relating to lease obligations.","page_number":404,"box":{"x":536,"y":666,"width":343,"height":12}},{"id":"379184c3-d3ed-4867-8aa1-cf6c59cc47bf","block_type":"box","text":"Life Settlement Investments.","page_number":404,"box":{"x":116,"y":698,"width":222,"height":9}},{"id":"58562ccd-6e49-4cf6-9a81-391927adddb1","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties,","page_number":404,"box":{"x":344,"y":698,"width":502,"height":12}},{"id":"737d1e1b-af31-42c0-9eaa-b056ef763cda","block_type":"box","text":"such as the Fund, of existing life insurance contract","page_number":404,"box":{"x":116,"y":713,"width":374,"height":12}},{"id":"ee4f97d3-8e1f-4157-b731-9656d3a7b45b","block_type":"box","text":"s for more than their cash surrender value but less","page_number":404,"box":{"x":490,"y":713,"width":366,"height":9}},{"id":"7315cda7-0cd4-4945-ac0c-9688b927c6f5","block_type":"box","text":"than the net benefits to be paid under the policies.","page_number":404,"box":{"x":116,"y":728,"width":362,"height":12}},{"id":"edd059c7-b8f5-48e3-8f35-1dd65d47df89","block_type":"box","text":"When a Fund acquires such a contract, it pays the","page_number":404,"box":{"x":484,"y":728,"width":366,"height":12}},{"id":"2c272c77-ccb7-4455-a395-38e28fc24a2d","block_type":"box","text":"policy premiums in return for the expected receipt","page_number":404,"box":{"x":117,"y":743,"width":359,"height":12}},{"id":"f35adcb1-cc9b-4a5f-ab96-ab26a8843e41","block_type":"box","text":"of the net benefit as the","page_number":404,"box":{"x":481,"y":743,"width":171,"height":9}},{"id":"3a94f2a9-711d-4e56-b6e1-3fae310eb944","block_type":"box","text":"beneficiary under the policy.","page_number":404,"box":{"x":658,"y":743,"width":202,"height":12}},{"id":"aeaeb163-f07c-425e-b544-0961ba8ebf38","block_type":"box","text":"Investments in these contracts involve certain risks,","page_number":404,"box":{"x":117,"y":758,"width":372,"height":11}},{"id":"95443eaf-e2ff-42fe-bf25-05fca353b26d","block_type":"box","text":"including liquidity risk, credit risk of the insurance","page_number":404,"box":{"x":496,"y":758,"width":354,"height":12}},{"id":"097a5feb-fa42-4e33-9422-201b63f55500","block_type":"box","text":"company, and inaccurate estimations of life expectan","page_number":404,"box":{"x":116,"y":773,"width":386,"height":12}},{"id":"6bb57a8b-40b1-418c-87af-0a5e8d953206","block_type":"box","text":"cy of the insured individuals (viators). These policies","page_number":404,"box":{"x":503,"y":773,"width":379,"height":12}},{"id":"5b065f67-59fc-4934-9e94-4bcc01fe8e25","block_type":"box","text":"may be considered illiquid because they are bought","page_number":404,"box":{"x":117,"y":788,"width":374,"height":12}},{"id":"dada3140-c34a-45f2-a9a8-291b908183dc","block_type":"box","text":"and sold in a secondary market through life","page_number":404,"box":{"x":496,"y":788,"width":314,"height":12}},{"id":"dbfc5b55-e602-4341-b6aa-b50e8faee340","block_type":"box","text":"settlement agents. Also, in the event of a bankruptcy","page_number":404,"box":{"x":116,"y":802,"width":382,"height":13}},{"id":"cb10226b-d1fb-4280-a3ae-65f6c41ad04e","block_type":"box","text":"of the insurance carrier for a policy, the Fund may","page_number":404,"box":{"x":503,"y":802,"width":362,"height":13}},{"id":"bb238fbf-7ab8-4983-87fb-c82ffe1a4bc8","block_type":"box","text":"receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by investing in","page_number":404,"box":{"x":117,"y":817,"width":738,"height":13}},{"id":"cd6f91e1-be8a-46bc-8a52-f5f9d51b61a3","block_type":"box","text":"policies issued by a diverse range of highly-rated","page_number":404,"box":{"x":117,"y":832,"width":359,"height":13}},{"id":"0e470d78-4a5a-44e6-a7cc-248e410f11a8","block_type":"box","text":"insurance carriers. Furthermore, a Fund may encounter","page_number":404,"box":{"x":477,"y":833,"width":408,"height":12}},{"id":"58277de2-3376-4030-96b7-50acc00c58c9","block_type":"box","text":"losses on its investments if there is an inaccurate","page_number":404,"box":{"x":117,"y":847,"width":361,"height":10}},{"id":"5d059602-0d66-49c4-bea4-8f470e6affa0","block_type":"box","text":"estimation of the life expectancies of viators. A Fund","page_number":404,"box":{"x":478,"y":847,"width":384,"height":12}},{"id":"a6e4404f-4230-407e-a713-ca5574cf2b2d","block_type":"box","text":"intends to reduce this life expectancy risk by invest","page_number":404,"box":{"x":117,"y":862,"width":368,"height":13}},{"id":"6a353d61-99d3-4e60-9b5f-ec48f9a7a079","block_type":"box","text":"ing only in contracts where the life expectancy was","page_number":404,"box":{"x":486,"y":862,"width":373,"height":13}},{"id":"3354313d-06b1-42c4-b4a1-109d1d1c4e45","block_type":"box","text":"reviewed by an experienced actuary, as well as by di","page_number":404,"box":{"x":117,"y":878,"width":382,"height":12}},{"id":"766d92c7-7c56-4e26-9660-1c4c4edac72e","block_type":"box","text":"versifying its investments across viators of varying","page_number":404,"box":{"x":500,"y":877,"width":369,"height":13}},{"id":"6ad145a0-84ef-4284-94fd-991d08c5abe7","block_type":"box","text":"II-65","page_number":404,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"dc4411ef-7529-4190-bc07-bc93b2fe8349","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":404,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c8b01029-a6d0-4d01-a2c0-19701c9fae25","block_type":"box","text":"ages and medical profiles. In addition, it is unclear w","page_number":405,"box":{"x":116,"y":86,"width":368,"height":13}},{"id":"a592c182-6e03-4d54-ae86-498357db9646","block_type":"box","text":"whether the income from life settlements is qualifying","page_number":405,"box":{"x":484,"y":86,"width":390,"height":13}},{"id":"68bfdc43-dbeb-4468-a396-1d61520ae2a7","block_type":"box","text":"income for purposes of the IRS 90% gross income","page_number":405,"box":{"x":117,"y":101,"width":371,"height":13}},{"id":"b8ba0d7c-b210-4c8e-98c4-e8ebfb04d611","block_type":"box","text":"test a Fund must satisfy each year to qualify as a","page_number":405,"box":{"x":488,"y":101,"width":361,"height":13}},{"id":"847f050a-60a7-4ff5-bd3d-a6cef37721ff","block_type":"box","text":"regulated investment company. A Fund intends to m","page_number":405,"box":{"x":117,"y":117,"width":379,"height":12}},{"id":"8d64cd4b-45bc-4ce4-96b3-d10d94e179a3","block_type":"box","text":"onitor its investments to ensure that the Fund","page_number":405,"box":{"x":497,"y":117,"width":334,"height":9}},{"id":"ac43d2d3-c116-4462-a90a-c0ec7616880b","block_type":"box","text":"remains qualified as a regulated investment company.","page_number":405,"box":{"x":117,"y":131,"width":397,"height":13}},{"id":"a6e6a896-185c-457e-be9b-a67dadfb89f7","block_type":"box","text":"Liquidity Risk Management.","page_number":405,"box":{"x":116,"y":161,"width":221,"height":11}},{"id":"644dc2da-560b-41b5-a923-39f143e0660e","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”)","page_number":405,"box":{"x":338,"y":160,"width":517,"height":12}},{"id":"241014ed-09d0-4252-a94f-537e4414225b","block_type":"box","text":"requires open-end funds, such as the Funds, to adopt a liquidity risk management program and","page_number":405,"box":{"x":117,"y":175,"width":712,"height":12}},{"id":"cada30a2-1977-455b-ba5e-2e76b5160771","block_type":"box","text":"enhance disclosures regarding fund liquidity. As required by the Liquidity Rule, the Funds have","page_number":405,"box":{"x":116,"y":190,"width":709,"height":12}},{"id":"7d1e0cb4-fffe-40cd-87b9-8d08dbb19a6c","block_type":"box","text":"implemented a liquidity risk management program (the “Liquidity Program”), and the Boards of","page_number":405,"box":{"x":117,"y":205,"width":704,"height":12}},{"id":"a78196ea-13db-4bbf-b6f3-d5932054800f","block_type":"box","text":"Directors of the Funds, including a majority of the independent Directors, have appointed the Manager","page_number":405,"box":{"x":117,"y":220,"width":762,"height":12}},{"id":"7cd4d11e-4e1c-4cfd-b051-e68a3f777b24","block_type":"box","text":"as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity Program, the","page_number":405,"box":{"x":116,"y":235,"width":745,"height":12}},{"id":"f5ba335f-c1e8-488f-b7e1-555762d60019","block_type":"box","text":"Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":405,"box":{"x":117,"y":250,"width":746,"height":12}},{"id":"6a8d3a48-b13e-4fb2-a713-ad693e8ad978","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid","page_number":405,"box":{"x":117,"y":265,"width":750,"height":12}},{"id":"20c8691a-41c3-4117-91d8-b510626fdfba","block_type":"box","text":"investment” or “illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund","page_number":405,"box":{"x":117,"y":280,"width":736,"height":12}},{"id":"5965bf8d-4245-4ff0-a676-d2b06e91e212","block_type":"box","text":"could not meet requests to redeem shares issued by the Fund without significant dilution of the","page_number":405,"box":{"x":116,"y":295,"width":709,"height":12}},{"id":"8d0597d4-6877-4ae8-8b62-502861c18629","block_type":"box","text":"remaining investors’ interests in the Fund. The liquidity of a Fund’s portfolio investments is determined","page_number":405,"box":{"x":117,"y":310,"width":762,"height":12}},{"id":"b77e735d-6854-4c02-81ec-8d7c4ad2c78e","block_type":"box","text":"based on relevant market, trading and investment-specific considerations under the Liquidity Program.","page_number":405,"box":{"x":117,"y":325,"width":764,"height":12}},{"id":"2aab0590-0c0c-4c85-9f82-64257786a667","block_type":"box","text":"To the extent that an investment is deemed to be an illiquid investment or a less liquid investment, a","page_number":405,"box":{"x":116,"y":340,"width":747,"height":12}},{"id":"6bcbd294-bac8-435b-9363-66ad23e614f7","block_type":"box","text":"Fund can expect to be exposed to greater liquidity risk.","page_number":405,"box":{"x":117,"y":355,"width":411,"height":12}},{"id":"7f4cb0ab-6677-4efd-b799-4d7e5054ab30","block_type":"box","text":"Master Limited Partnerships.","page_number":405,"box":{"x":116,"y":385,"width":230,"height":12}},{"id":"4af64b48-8f2a-4132-94fc-0d533f4d8e68","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships","page_number":405,"box":{"x":347,"y":385,"width":538,"height":12}},{"id":"9e061c5f-7d8a-454e-af97-b9348e225a42","block_type":"box","text":"(“MLPs”) which are limited partnerships or limited liability companies taxable as partnerships. MLPs","page_number":405,"box":{"x":117,"y":400,"width":741,"height":12}},{"id":"668b62d0-4fd1-40e0-babb-c7721ff05f33","block_type":"box","text":"may derive income and gains from the exploration, development, mining or production, processing,","page_number":405,"box":{"x":117,"y":416,"width":739,"height":12}},{"id":"3d83c26c-9327-4dd4-a244-acfcfa3fc4ec","block_type":"box","text":"refining, transportation (including pipelines transporting gas, oil, or products thereof), or the marketing","page_number":405,"box":{"x":117,"y":431,"width":758,"height":12}},{"id":"8730f69d-019c-4ae7-9c15-732595334265","block_type":"box","text":"of any mineral or natural resources. MLPs generally have two classes of owners, the general partner","page_number":405,"box":{"x":116,"y":447,"width":752,"height":12}},{"id":"85970229-bdff-4a74-95a4-10235f70c4e8","block_type":"box","text":"and limited partners. When investing in an MLP, a Fund intends to purchase publicly traded common","page_number":405,"box":{"x":116,"y":462,"width":753,"height":12}},{"id":"9b3e68a2-1b64-441f-95ef-3eed0aa13fe7","block_type":"box","text":"units issued to limited partners of the MLP. The general partner is typically owned by a major energy","page_number":405,"box":{"x":117,"y":478,"width":749,"height":12}},{"id":"f5dd8b8b-af53-4f47-9aed-84ced2d20157","block_type":"box","text":"company, an investment fund, the direct management of the MLP or is an entity owned by one or more","page_number":405,"box":{"x":116,"y":493,"width":769,"height":12}},{"id":"d121d2ba-24d2-434d-b811-aa55741bdb64","block_type":"box","text":"of such parties. The general partner may be structured as a private or publicly traded corporation or","page_number":405,"box":{"x":116,"y":509,"width":744,"height":12}},{"id":"9158beff-a20e-451f-b583-6c40390117ab","block_type":"box","text":"other entity. The general partner typically controls the operations and management of the MLP through","page_number":405,"box":{"x":116,"y":524,"width":768,"height":12}},{"id":"536f6a44-2fa2-4da0-90a2-9a91346bfa26","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and","page_number":405,"box":{"x":116,"y":540,"width":689,"height":12}},{"id":"a4b03638-66d7-4c93-a48b-504d480c5e57","block_type":"box","text":"subordinated units. Limited partners own the remainder of the partnership, through ownership of","page_number":405,"box":{"x":116,"y":555,"width":718,"height":12}},{"id":"58afe945-3620-45d6-b7b9-e389fd729576","block_type":"box","text":"common units, and have a limited role in the partnership’s operations and management.","page_number":405,"box":{"x":116,"y":571,"width":658,"height":12}},{"id":"a1b44096-c495-47c9-bb9a-a56b7440b467","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to","page_number":405,"box":{"x":117,"y":600,"width":769,"height":12}},{"id":"d3dd3710-5f98-45dc-818e-bd2be1d70bad","block_type":"box","text":"receive quarterly cash distributions up to an established minimum amount (“minimum quarterly","page_number":405,"box":{"x":117,"y":616,"width":706,"height":12}},{"id":"229e3a7c-0f02-4a20-99cb-cc979cf76c46","block_type":"box","text":"distributions” or “MQD”). Common and general partner interests also accrue arrearages in distributions","page_number":405,"box":{"x":116,"y":631,"width":767,"height":12}},{"id":"e4a737cd-ad74-4ca0-8125-6bbec98c1b40","block_type":"box","text":"to the extent the MQD is not paid. Once common and general partner interests have been paid,","page_number":405,"box":{"x":116,"y":647,"width":714,"height":12}},{"id":"5c13c88f-0d37-47f0-990b-10f78f94aa2a","block_type":"box","text":"subordinated units receive distributions of up to the MQD; however, subordinated units do not accrue","page_number":405,"box":{"x":116,"y":662,"width":750,"height":12}},{"id":"3c21ead7-e736-4e49-8e3d-c7480dcf56d3","block_type":"box","text":"arrearages. Distributable cash in excess of the MQD paid to both common and subordinated units is","page_number":405,"box":{"x":116,"y":678,"width":743,"height":12}},{"id":"5704b36a-ef8c-42a0-ba76-95dea8a8721d","block_type":"box","text":"distributed to both common and subordinated units generally on a pro rata basis. The general partner","page_number":405,"box":{"x":116,"y":693,"width":752,"height":12}},{"id":"51bcf9a6-5c05-4a6d-a4f1-f2cfde288ba1","block_type":"box","text":"is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":405,"box":{"x":117,"y":709,"width":707,"height":12}},{"id":"0b3607a5-7256-492d-89e1-a8163a41c087","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the","page_number":405,"box":{"x":117,"y":724,"width":746,"height":12}},{"id":"72ac26dc-c057-4992-922f-1559fbd0541c","block_type":"box","text":"general partner increases cash distributions to the limited partners, the general partner receives an","page_number":405,"box":{"x":116,"y":740,"width":733,"height":12}},{"id":"cdaf8b55-4455-4945-ba0a-5a2fe87cf755","block_type":"box","text":"increasingly higher percentage of the incremental cash distributions. A common arrangement provides","page_number":405,"box":{"x":117,"y":755,"width":759,"height":12}},{"id":"454eeb99-5f9b-4aa9-9dc4-a73d403b87e0","block_type":"box","text":"that the general partner can reach a tier where it receives 50% of every incremental dollar paid to","page_number":405,"box":{"x":116,"y":771,"width":722,"height":12}},{"id":"3a4f1f71-dad2-432e-991d-aad6627671fa","block_type":"box","text":"common and subordinated unit holders. These incentive distributions encourage the general partner to","page_number":405,"box":{"x":116,"y":786,"width":762,"height":12}},{"id":"bbebe489-ffb2-4644-bce2-65a36f137785","block_type":"box","text":"streamline costs, increase capital expenditures and acquire assets in order to increase the","page_number":405,"box":{"x":116,"y":802,"width":671,"height":12}},{"id":"ec8f995e-0004-41ef-8d80-51087a7180c9","block_type":"box","text":"partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers. Such","page_number":405,"box":{"x":117,"y":817,"width":730,"height":12}},{"id":"ef230b77-d26b-4be2-b3c7-ea10b2e93815","block_type":"box","text":"results benefit all security holders of the MLP.","page_number":405,"box":{"x":117,"y":833,"width":343,"height":12}},{"id":"4f96c3d0-7ae8-40ae-b31e-9d8d44c1c811","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and","page_number":405,"box":{"x":117,"y":862,"width":748,"height":12}},{"id":"fd6639d0-3614-48af-8666-d3e552c5d2fa","block_type":"box","text":"traded on U.S. securities exchanges, with their value fluctuating predominantly based on prevailing","page_number":405,"box":{"x":116,"y":878,"width":739,"height":12}},{"id":"dc3201e8-6a0d-4784-8486-e05e772948c3","block_type":"box","text":"II-66","page_number":405,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2a1966af-096c-4ba1-ab35-0fa1a9db2401","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":405,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"66606040-31fa-4a51-820b-608e8d00d84b","block_type":"box","text":"market conditions and the success of the MLP. Certain Funds intend to purchase common units in","page_number":406,"box":{"x":117,"y":87,"width":733,"height":12}},{"id":"4de8ce2b-9929-42d1-b369-f4c9991b4b16","block_type":"box","text":"market transactions. Unlike owners of common stock of a corporation, owners of common units have","page_number":406,"box":{"x":117,"y":102,"width":752,"height":12}},{"id":"9cabd03a-d6e6-4e25-bc94-9319a2283300","block_type":"box","text":"limited voting rights and have no ability to annually elect directors. In the event of liquidation, common","page_number":406,"box":{"x":117,"y":118,"width":758,"height":12}},{"id":"edbdf539-a7fd-43ce-83d4-06e64854c60e","block_type":"box","text":"units have preference over subordinated units, but not over debt or preferred units, to the remaining","page_number":406,"box":{"x":117,"y":134,"width":744,"height":12}},{"id":"853eff4c-8087-4df0-aae5-6c0c858fed2a","block_type":"box","text":"assets of the MLP.","page_number":406,"box":{"x":116,"y":149,"width":144,"height":10}},{"id":"623b8ca4-ce50-4cc3-99e6-2ffc97b0177f","block_type":"box","text":"Merger Transaction Risk.","page_number":406,"box":{"x":116,"y":179,"width":200,"height":12}},{"id":"a42a3747-53a3-4fe9-9a6c-6ee9228029de","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger","page_number":406,"box":{"x":317,"y":179,"width":531,"height":12}},{"id":"8351183f-4ad5-4e07-9d3f-9287f5134028","block_type":"box","text":"transaction prior to the consummation of such transaction. In that circumstance, a Fund would expect","page_number":406,"box":{"x":116,"y":194,"width":757,"height":12}},{"id":"38de1316-8b55-4397-83b6-1190bdddc577","block_type":"box","text":"to receive an amount (whether in cash, stock of the acquiring company or a combination of both) in","page_number":406,"box":{"x":116,"y":210,"width":740,"height":12}},{"id":"a94d2f85-d517-49b8-aa63-d5ddc655491a","block_type":"box","text":"excess of the purchase price paid by the Fund for the target company’s stock. However, a Fund is","page_number":406,"box":{"x":116,"y":225,"width":733,"height":13}},{"id":"646c0b06-0764-4ac0-9ad4-c913e184950e","block_type":"box","text":"subject to the risk that the merger transaction may be canceled, delayed or restructured, in which case","page_number":406,"box":{"x":116,"y":241,"width":766,"height":12}},{"id":"e90efbc6-156d-452d-b61f-e4f1b23f68df","block_type":"box","text":"a Fund’s holding of the target company’s stock may not result in any profit for the Fund and may lose","page_number":406,"box":{"x":116,"y":256,"width":754,"height":13}},{"id":"820ac0ff-d679-4159-a58e-6f77431dbdd9","block_type":"box","text":"significant value.","page_number":406,"box":{"x":116,"y":272,"width":129,"height":12}},{"id":"df402d35-0b14-48f4-b14f-3eeafe28b5dd","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S.","page_number":406,"box":{"x":116,"y":302,"width":737,"height":12}},{"id":"d095d683-0ceb-4b36-b0bc-bbe4205a8a80","block_type":"box","text":"Banks.","page_number":406,"box":{"x":116,"y":318,"width":54,"height":9}},{"id":"780c3107-4886-4f66-b4be-e24b705f47e4","block_type":"box","text":"Certain Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’","page_number":406,"box":{"x":171,"y":317,"width":705,"height":12}},{"id":"d2e11832-03bf-4526-9e10-e7a8058a6e32","block_type":"box","text":"acceptances and time deposits, including instruments issued or supported by the credit of U.S. or","page_number":406,"box":{"x":116,"y":333,"width":728,"height":12}},{"id":"b993173f-8392-4225-b69c-1c2533b260e6","block_type":"box","text":"foreign banks or savings institutions having total assets at the time of purchase in excess of $1 billion.","page_number":406,"box":{"x":116,"y":348,"width":761,"height":12}},{"id":"44cd3880-c3ef-4339-ad12-69f14080158b","block_type":"box","text":"These obligations may be general obligations of the parent bank or may be limited to the issuing","page_number":406,"box":{"x":116,"y":364,"width":719,"height":12}},{"id":"24fb7fd0-e866-485c-bf2f-c1ee690adfa7","block_type":"box","text":"branch or subsidiary by the terms of a specific obligation or by government regulation. The assets of a","page_number":406,"box":{"x":117,"y":379,"width":761,"height":12}},{"id":"c939b022-3ea1-413d-9f5a-c41e69a52931","block_type":"box","text":"bank or savings institution will be deemed to include the assets of its domestic and foreign branches","page_number":406,"box":{"x":117,"y":395,"width":747,"height":12}},{"id":"b8a6dbbf-31b7-42c5-9f89-8209267dc2b8","block_type":"box","text":"for purposes of a Fund’s investment policies. Investments in short-term bank obligations may include","page_number":406,"box":{"x":116,"y":410,"width":753,"height":12}},{"id":"d2dd2049-cfc7-44cb-86af-6dd709d9211d","block_type":"box","text":"obligations of foreign banks and domestic branches of foreign banks, and also foreign branches of","page_number":406,"box":{"x":116,"y":426,"width":734,"height":12}},{"id":"8464f5be-8821-439c-8e5f-c5afc1296063","block_type":"box","text":"domestic banks.","page_number":406,"box":{"x":116,"y":442,"width":126,"height":9}},{"id":"07712851-f5f0-4689-ab60-d27b4f1d1498","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of","page_number":406,"box":{"x":116,"y":471,"width":727,"height":12}},{"id":"069b70cc-b03d-4a46-8979-f8a2b8969ece","block_type":"box","text":"domestic or foreign corporations and banks, and may acquire commercial obligations issued by","page_number":406,"box":{"x":116,"y":487,"width":713,"height":12}},{"id":"9ec5ccfe-2c2c-498d-ac48-835df3c69548","block_type":"box","text":"Canadian corporations and Canadian counterparts of U.S. corporations, as well as Europaper, which is","page_number":406,"box":{"x":117,"y":502,"width":769,"height":12}},{"id":"a360bb7a-b18d-4743-9bfc-b26670211193","block_type":"box","text":"U.S. dollar-denominated commercial paper of a foreign issuer.","page_number":406,"box":{"x":117,"y":518,"width":466,"height":12}},{"id":"43a2aee3-bb03-4e52-90c3-2205b1912848","block_type":"box","text":"Money Market Securities.","page_number":406,"box":{"x":116,"y":548,"width":201,"height":12}},{"id":"7a24a429-6846-4760-af16-e749fc2058ee","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S.","page_number":406,"box":{"x":318,"y":548,"width":564,"height":12}},{"id":"37a7802e-d353-4d0d-abb1-e5438f41d4a8","block_type":"box","text":"dollar-denominated instruments, such as government, bank, commercial and other obligations that are","page_number":406,"box":{"x":116,"y":563,"width":765,"height":12}},{"id":"8412ff8d-816b-47c0-96df-d36cbbf8f9ab","block_type":"box","text":"available in the money markets. In particular, the Funds may invest in:","page_number":406,"box":{"x":116,"y":579,"width":526,"height":12}},{"id":"f73a0de6-ea62-4d2e-9b3a-50fbf4017aea","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks","page_number":406,"box":{"x":150,"y":601,"width":735,"height":13}},{"id":"1c8832c4-3717-46bd-86c4-dba09a084fb9","block_type":"box","text":"or savings institutions with total assets in excess of $1 billion (including obligations of foreign","page_number":406,"box":{"x":184,"y":616,"width":690,"height":13}},{"id":"ff2bdc12-6e24-4c78-8970-0a8b83f8186a","block_type":"box","text":"branches of such banks);","page_number":406,"box":{"x":184,"y":632,"width":192,"height":13}},{"id":"c76bcb4b-b2fb-4982-ab2f-0d9126061286","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign","page_number":406,"box":{"x":150,"y":655,"width":734,"height":12}},{"id":"5604493e-2a45-4703-a2f2-176e3117a7c6","block_type":"box","text":"corporations and other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2","page_number":406,"box":{"x":184,"y":671,"width":686,"height":12}},{"id":"a2ebe777-c01d-4e40-bdcd-7b8a955f5e32","block_type":"box","text":"or higher by Moody’s or F-2 or higher by Fitch, as well as high quality corporate bonds rated","page_number":406,"box":{"x":184,"y":686,"width":681,"height":12}},{"id":"90dba5cc-bca7-46c0-8dca-3da8b3fa6651","block_type":"box","text":"(at the time of purchase) A or higher by those rating agencies;","page_number":406,"box":{"x":184,"y":702,"width":459,"height":12}},{"id":"dd8cff9c-3c6b-483d-9b1b-c29d97a0175e","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments","page_number":406,"box":{"x":150,"y":724,"width":720,"height":12}},{"id":"935590dd-ba4f-49ac-8fba-f80d4a1ca686","block_type":"box","text":"described in (b) above as determined by the Fund’s Manager;","page_number":406,"box":{"x":184,"y":740,"width":457,"height":12}},{"id":"ba96a88f-8080-42d7-8f3f-d39a66d634ac","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment","page_number":406,"box":{"x":150,"y":762,"width":725,"height":13}},{"id":"fc7ae716-f753-4f41-829f-413899892aac","block_type":"box","text":"purchase obligations and credit card receivables);","page_number":406,"box":{"x":184,"y":778,"width":368,"height":12}},{"id":"65b365ce-49c3-4993-80ac-cab0f7f18e06","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its","page_number":406,"box":{"x":150,"y":801,"width":717,"height":12}},{"id":"98976060-86a0-48c3-b7d9-459850c46631","block_type":"box","text":"agencies or authorities and related custodial receipts;","page_number":406,"box":{"x":184,"y":816,"width":395,"height":12}},{"id":"4ea06eae-e90d-48cd-a1ef-1733a2857820","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political","page_number":406,"box":{"x":150,"y":839,"width":719,"height":12}},{"id":"7387eb92-6b6d-4d9c-9cb9-bb58b1268abe","block_type":"box","text":"subdivisions, agencies or authorities;","page_number":406,"box":{"x":184,"y":854,"width":279,"height":12}},{"id":"c450e0e1-d9af-4ce6-93df-0bc4c57a8756","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":406,"box":{"x":150,"y":877,"width":561,"height":12}},{"id":"0eac1e02-8ed1-4f53-820d-786503c42453","block_type":"box","text":"II-67","page_number":406,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"51c681c6-7651-4ee7-b185-117190aff612","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":406,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1a3b61eb-ceb3-4cf6-9d63-7d07e3441ce8","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":407,"box":{"x":150,"y":87,"width":560,"height":12}},{"id":"2655e30a-45a6-4d34-b76c-f6da604c3241","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":407,"box":{"x":150,"y":109,"width":469,"height":12}},{"id":"17daeeb1-8217-4a30-bcc0-67bd7a7c7473","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S.","page_number":407,"box":{"x":150,"y":131,"width":736,"height":12}},{"id":"206754d0-23f3-4509-a253-0a7d85f39b6c","block_type":"box","text":"Government or one of its agencies or authorities or which otherwise depend directly or","page_number":407,"box":{"x":184,"y":147,"width":646,"height":12}},{"id":"a718fd39-d615-4b8a-9dc1-484786085677","block_type":"box","text":"indirectly on the credit of the United States;","page_number":407,"box":{"x":184,"y":162,"width":325,"height":12}},{"id":"4e7f6670-3f0f-43a1-9118-33c2ea4ae0c4","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or","page_number":407,"box":{"x":150,"y":184,"width":730,"height":12}},{"id":"b9b77de9-c8f0-487f-ba1b-0b4d0ee55140","block_type":"box","text":"higher by Moody’s, SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":407,"box":{"x":184,"y":200,"width":563,"height":12}},{"id":"6018befd-d48e-4921-934d-da2422b02f0b","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by","page_number":407,"box":{"x":150,"y":222,"width":675,"height":12}},{"id":"d1c92c6a-6a28-4704-a1e0-ddf7db7a43b7","block_type":"box","text":"Moody’s, A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":407,"box":{"x":184,"y":237,"width":428,"height":12}},{"id":"0c68fa3b-855a-4278-93c3-6faf5057caf7","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":407,"box":{"x":150,"y":259,"width":488,"height":13}},{"id":"faf015dc-b2d5-4cb5-8fd5-43e5b01908d8","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments","page_number":407,"box":{"x":150,"y":282,"width":713,"height":12}},{"id":"72ccc84f-b34f-4d1e-b9f7-75e424d2e372","block_type":"box","text":"described above, as determined by the Fund’s Manager under guidelines established by the","page_number":407,"box":{"x":184,"y":297,"width":688,"height":12}},{"id":"9762ccb6-3ebb-49c6-b127-be787499bf27","block_type":"box","text":"Board; and","page_number":407,"box":{"x":184,"y":313,"width":86,"height":11}},{"id":"c31dd47c-ab0a-4871-8023-4c149364cf35","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S.","page_number":407,"box":{"x":150,"y":335,"width":693,"height":12}},{"id":"def0b525-4c18-4d73-b328-18f25f886a16","block_type":"box","text":"Government or an agency or instrumentality thereof or which otherwise depend directly or","page_number":407,"box":{"x":184,"y":350,"width":671,"height":12}},{"id":"cb886893-830e-4737-a3f8-3d2c881f3df7","block_type":"box","text":"indirectly on the credit of the United States.","page_number":407,"box":{"x":184,"y":366,"width":325,"height":12}},{"id":"45227dfe-9eba-4861-89a9-5fb7f4854ea7","block_type":"box","text":"Mortgage-Related Securities.","page_number":407,"box":{"x":116,"y":394,"width":236,"height":13}},{"id":"37ad2a43-721d-4bd2-a136-6f3c436500e9","block_type":"box","text":"Mortgage-Backed Securities.","page_number":407,"box":{"x":116,"y":417,"width":210,"height":12}},{"id":"6e6d7f69-de2b-4a75-8ef5-ea6ce0a24547","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in","page_number":407,"box":{"x":327,"y":417,"width":532,"height":12}},{"id":"f19b6f1d-9d99-4aeb-9df0-2cc88bdb7875","block_type":"box","text":"which payments of both principal and interest on the","page_number":407,"box":{"x":116,"y":432,"width":384,"height":12}},{"id":"bc1ef3ab-ac1d-4a48-9210-fdd0316f0adc","block_type":"box","text":"securities are generally made monthly, in effect","page_number":407,"box":{"x":500,"y":432,"width":348,"height":12}},{"id":"2d2d0927-3104-4128-b03a-05b3b22a4747","block_type":"box","text":"“passing through” monthly payments made by borro","page_number":407,"box":{"x":116,"y":448,"width":377,"height":12}},{"id":"2ceb92ae-df09-4db7-9cbe-ce7778a14ef9","block_type":"box","text":"wers on the residential or commercial mortgage","page_number":407,"box":{"x":493,"y":448,"width":352,"height":12}},{"id":"6af74d59-802c-486d-9dc0-36fd431beeee","block_type":"box","text":"loans that underlie the securities (net of any fees","page_number":407,"box":{"x":117,"y":463,"width":357,"height":12}},{"id":"b5ed1e1e-c308-4745-9e46-0ad4d48952bc","block_type":"box","text":"paid to the issuer or guarantor of the securities).","page_number":407,"box":{"x":475,"y":463,"width":353,"height":12}},{"id":"1f0b4fbd-05a4-439b-a904-4101d0665b12","block_type":"box","text":"Mortgage-backed securities differ from other forms of","page_number":407,"box":{"x":117,"y":479,"width":391,"height":12}},{"id":"445151b3-b7ed-4f0f-ae0d-43faa1e8fa28","block_type":"box","text":"debt securities, which normally provide for periodic","page_number":407,"box":{"x":508,"y":479,"width":372,"height":12}},{"id":"37948d52-bb7f-4bc0-89d6-3d71d05bdc5e","block_type":"box","text":"payment of interest in fixed amounts with principal","page_number":407,"box":{"x":117,"y":494,"width":362,"height":12}},{"id":"fc1cb477-09e7-4a23-a503-640f74a923a4","block_type":"box","text":"payments at maturity or specified call dates.","page_number":407,"box":{"x":479,"y":494,"width":330,"height":12}},{"id":"0b711e60-53e1-4156-bc09-f3f93c68aa84","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate","page_number":407,"box":{"x":117,"y":523,"width":736,"height":12}},{"id":"7b7ff427-4340-4c8d-8cf7-3ac8bb1ee7c9","block_type":"box","text":"securities; that is, they may lose value if the value of the underlying real estate to which a pool of","page_number":407,"box":{"x":116,"y":538,"width":722,"height":12}},{"id":"85dc014d-4ab3-4d44-a703-fe30a45e967e","block_type":"box","text":"mortgages relates declines. In addition, investments in mortgage-backed securities involve certain","page_number":407,"box":{"x":117,"y":554,"width":732,"height":12}},{"id":"57b3f328-d9a3-462f-8667-0946d6a31ec1","block_type":"box","text":"specific risks. These risks include the failure of a party to meet its commitments under the related","page_number":407,"box":{"x":116,"y":569,"width":726,"height":12}},{"id":"b8b2ac7a-0947-4cb1-8c7c-6d7b0c9665b3","block_type":"box","text":"operative documents, adverse interest rate changes and the effects of prepayments on mortgage cash","page_number":407,"box":{"x":116,"y":585,"width":767,"height":12}},{"id":"36a8da54-ad2d-4132-bdb6-5bc75036bfd6","block_type":"box","text":"flows. Mortgage-backed securities are “pass-through” securities, meaning that principal and interest","page_number":407,"box":{"x":116,"y":600,"width":744,"height":12}},{"id":"ec2c41f1-96d1-41b4-8b30-6ab315b61ef2","block_type":"box","text":"payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":407,"box":{"x":117,"y":616,"width":693,"height":12}},{"id":"be0dc95d-85a9-446a-8550-7a7d58e85b87","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly","page_number":407,"box":{"x":116,"y":631,"width":725,"height":12}},{"id":"0768ea51-b0bb-4eda-89c1-97861ab5e57e","block_type":"box","text":"sensitive to changes in prevailing interest rates, and, like other fixed income investments, the ability of","page_number":407,"box":{"x":116,"y":647,"width":761,"height":12}},{"id":"1646a060-4f89-44af-aed9-3fa651320e13","block_type":"box","text":"a Fund to utilize these instruments successfully may depend in part upon the ability of the Manager to","page_number":407,"box":{"x":116,"y":662,"width":754,"height":12}},{"id":"8bdd1446-4d41-4b1f-9945-fae65aa879c4","block_type":"box","text":"forecast interest rates and other economic factors correctly. The value of mortgage-backed securities,","page_number":407,"box":{"x":116,"y":678,"width":755,"height":12}},{"id":"b18cf067-d907-4e30-8d09-b0f118475028","block_type":"box","text":"like that of traditional fixed-income securities, typically increases when interest rates fall and decreases","page_number":407,"box":{"x":117,"y":693,"width":762,"height":12}},{"id":"d2e51013-1a94-4a6f-9f1d-392868823617","block_type":"box","text":"when interest rates rise. However, mortgage-backed securities differ from traditional fixed-income","page_number":407,"box":{"x":116,"y":709,"width":724,"height":12}},{"id":"6cb62f82-9986-47f3-9242-e5fd817e7773","block_type":"box","text":"securities because of their potential for prepayment without penalty. The price paid by a Fund for its","page_number":407,"box":{"x":116,"y":724,"width":739,"height":12}},{"id":"7367e7a4-66ed-41eb-9bbb-89ae54847b15","block_type":"box","text":"mortgage-backed securities, the yield the Fund expects to receive from such securities and the","page_number":407,"box":{"x":117,"y":740,"width":704,"height":12}},{"id":"0bcb67f8-b16b-4d24-8c77-28800e87ccb0","block_type":"box","text":"weighted average life of the securities are based on a number of factors, including the anticipated rate","page_number":407,"box":{"x":116,"y":755,"width":757,"height":12}},{"id":"fc3e6454-978d-4535-9683-70a44b83cbd1","block_type":"box","text":"of prepayment of the underlying mortgages. In a period of declining interest rates, borrowers may","page_number":407,"box":{"x":116,"y":771,"width":722,"height":12}},{"id":"ba78aca0-6315-4f38-9799-2b45ccafcc1e","block_type":"box","text":"prepay the underlying mortgages more quickly than anticipated, thereby reducing the yield to maturity","page_number":407,"box":{"x":117,"y":787,"width":753,"height":11}},{"id":"d57c1317-9e01-4a1c-bc7b-21bd0d0e09f6","block_type":"box","text":"and the average life of the mortgage-backed securities. Moreover, when a Fund reinvests the proceeds","page_number":407,"box":{"x":116,"y":802,"width":766,"height":12}},{"id":"c2046d43-2cfe-487f-aaff-f4f9216c81f5","block_type":"box","text":"of a prepayment in these circumstances, it will likely receive a rate of interest that is lower than the rate","page_number":407,"box":{"x":116,"y":817,"width":764,"height":12}},{"id":"b911d492-71f4-44c8-9c3c-3f9f7f779299","block_type":"box","text":"on the security that was prepaid.","page_number":407,"box":{"x":116,"y":833,"width":247,"height":12}},{"id":"cc86969b-ca59-4bfa-8f1f-691852bf197b","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures","page_number":407,"box":{"x":116,"y":862,"width":766,"height":12}},{"id":"6a43dfd9-980e-42f6-a8dd-ed012017419f","block_type":"box","text":"and principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such","page_number":407,"box":{"x":116,"y":877,"width":758,"height":12}},{"id":"826616c7-fb2b-442e-b5d0-c609ad25eb7a","block_type":"box","text":"II-68","page_number":407,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"dfb9619e-2b2f-439e-b9ad-6a01f78e5ffe","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":407,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a5dd9350-1df1-45f6-b3b3-ae01e188b318","block_type":"box","text":"securities at a discount, both scheduled payments of principal and unscheduled prepayments will","page_number":408,"box":{"x":116,"y":87,"width":726,"height":12}},{"id":"442be952-6875-4734-a0f9-cf7f3ef59613","block_type":"box","text":"increase current and total returns and will accelerate the recognition of income, which, when distributed","page_number":408,"box":{"x":117,"y":102,"width":771,"height":13}},{"id":"97f536e2-f048-4b00-ab5f-1f0026046c63","block_type":"box","text":"to shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of","page_number":408,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"bdabcb43-28f0-4aaa-ba52-a27e6ffd2d75","block_type":"box","text":"the underlying mortgages may occur at a slower than expected rate, creating maturity extension risk.","page_number":408,"box":{"x":116,"y":134,"width":753,"height":12}},{"id":"c50487c8-2453-4e09-971e-c9808d5de743","block_type":"box","text":"This particular risk may effectively change a security that was considered short- or intermediate-term at","page_number":408,"box":{"x":116,"y":149,"width":771,"height":12}},{"id":"79cd4f4c-d092-427d-87e1-2baf3f31dfe1","block_type":"box","text":"the time of purchase into a long-term security. Since the value of long-term securities generally","page_number":408,"box":{"x":116,"y":165,"width":709,"height":12}},{"id":"b546f288-a93e-411c-9035-3ad7451503a4","block_type":"box","text":"fluctuates more widely in response to changes in interest rates than that of shorter-term securities,","page_number":408,"box":{"x":116,"y":180,"width":736,"height":12}},{"id":"003cf7ba-9ba7-41ea-9e9b-00f975fbfcd9","block_type":"box","text":"maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":408,"box":{"x":117,"y":196,"width":769,"height":12}},{"id":"e6c1e2b4-757e-4267-b3ac-2a746a6efa3e","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities","page_number":408,"box":{"x":117,"y":211,"width":740,"height":12}},{"id":"429e1875-9051-419b-a249-7565b3a0b009","block_type":"box","text":"notwithstanding any direct or indirect governmental or agency guarantee.","page_number":408,"box":{"x":117,"y":227,"width":547,"height":12}},{"id":"cf3865c8-04a5-4561-88e1-81a18b959249","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S.","page_number":408,"box":{"x":116,"y":254,"width":725,"height":12}},{"id":"4ac299d1-94e8-4ef5-ac8e-dca7628e25c2","block_type":"box","text":"Government or one of its agencies or instrumentalities, such as the Government National Mortgage","page_number":408,"box":{"x":117,"y":269,"width":742,"height":12}},{"id":"c084b22a-ba64-465f-8e8c-d50efb9d1f0d","block_type":"box","text":"Association (“Ginnie Mae”), the Federal National Mortgage Association (“Fannie Mae”) and the Federal","page_number":408,"box":{"x":116,"y":285,"width":770,"height":12}},{"id":"189f109d-bd15-420d-830d-993e7940c472","block_type":"box","text":"Home Loan Mortgage Corporation (“Freddie Mac”); (2) those issued by private issuers that represent","page_number":408,"box":{"x":117,"y":300,"width":753,"height":12}},{"id":"69ae255b-df03-49dc-b76e-b025246b15cd","block_type":"box","text":"an interest in or are collateralized by pass-through securities issued or guaranteed by the U.S.","page_number":408,"box":{"x":116,"y":316,"width":704,"height":12}},{"id":"3620b7a7-a245-4244-8969-f9e6c11a6d9b","block_type":"box","text":"Government or one of its agencies or instrumentalities; and (3) those issued by private issuers that","page_number":408,"box":{"x":117,"y":331,"width":737,"height":12}},{"id":"e503959c-0e2d-439d-93b7-b4318f5fc8be","block_type":"box","text":"represent an interest in or are collateralized by whole mortgage loans or pass-through securities","page_number":408,"box":{"x":117,"y":347,"width":717,"height":12}},{"id":"c29ad12e-2538-46f2-a206-47d8336bc682","block_type":"box","text":"without a government guarantee but that usually have some form of private credit enhancement.","page_number":408,"box":{"x":116,"y":362,"width":720,"height":12}},{"id":"19721bf5-22ad-4645-bf32-a12e41842112","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and","page_number":408,"box":{"x":117,"y":389,"width":736,"height":12}},{"id":"d64d611e-5baf-421a-95be-ca6cc8e9924f","block_type":"box","text":"Urban Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S.","page_number":408,"box":{"x":117,"y":405,"width":741,"height":12}},{"id":"efb97f02-39ab-4574-a8a2-02a773f2295a","block_type":"box","text":"Government, the timely payment of principal and interest on securities issued by the institutions","page_number":408,"box":{"x":117,"y":420,"width":713,"height":12}},{"id":"b9dce93e-f3da-42a7-934d-350d5a096e6b","block_type":"box","text":"approved by Ginnie Mae (such as savings and loan institutions, commercial banks and mortgage","page_number":408,"box":{"x":116,"y":436,"width":725,"height":12}},{"id":"1ecd77fa-c05e-4044-8308-58ba1833b7ba","block_type":"box","text":"banks), and backed by pools of Federal Housing Administration (“FHA”)-insured or Veterans’","page_number":408,"box":{"x":117,"y":451,"width":693,"height":12}},{"id":"0bbd0913-690d-4b77-89eb-0755186bb2bb","block_type":"box","text":"Administration (“VA”)-guaranteed mortgages. Pass-through certificates guaranteed by Ginnie Mae","page_number":408,"box":{"x":116,"y":467,"width":733,"height":12}},{"id":"42dab287-79c5-4f53-bceb-37669e1026c0","block_type":"box","text":"(such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely payment of","page_number":408,"box":{"x":117,"y":482,"width":711,"height":12}},{"id":"6065a8de-0574-49bc-a22b-d5bea82cdab1","block_type":"box","text":"principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the","page_number":408,"box":{"x":117,"y":498,"width":725,"height":12}},{"id":"188586b3-40fa-4418-9f4a-3ca617bdb529","block_type":"box","text":"United States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow","page_number":408,"box":{"x":117,"y":513,"width":733,"height":12}},{"id":"37f91ac0-897e-410f-9b5b-7a89e6ac9093","block_type":"box","text":"funds from the U.S. Treasury Department to make payments under its guarantee. Mortgage-related","page_number":408,"box":{"x":116,"y":529,"width":743,"height":12}},{"id":"5eb19a21-9ed5-4e6d-a899-9db9180599e0","block_type":"box","text":"securities issued by Fannie Mae include Fannie Mae guaranteed Mortgage Pass-Through Certificates","page_number":408,"box":{"x":116,"y":544,"width":761,"height":12}},{"id":"5656b365-60c7-4544-b5a4-c310a2ab6e5a","block_type":"box","text":"(also known as “Fannie Maes”), which are guaranteed as to timely payment of principal and interest by","page_number":408,"box":{"x":117,"y":560,"width":766,"height":12}},{"id":"675cc74c-413a-4fa0-8afd-0c80cf5a4cea","block_type":"box","text":"Fannie Mae. They are not backed by or entitled to the full faith and credit of the United States, but are","page_number":408,"box":{"x":117,"y":575,"width":759,"height":12}},{"id":"e98c3f67-db7a-467a-8011-b2cd122c3ebe","block_type":"box","text":"supported by the right of Fannie Mae to borrow from the U.S. Treasury Department. Fannie Mae was","page_number":408,"box":{"x":116,"y":591,"width":755,"height":12}},{"id":"37413102-5f84-4dd3-8251-465ab3d65c57","block_type":"box","text":"established as a federal agency in 1938 and in 1968 was chartered by Congress as a private","page_number":408,"box":{"x":116,"y":606,"width":695,"height":12}},{"id":"f5fc14a5-5adb-4a8e-836a-8508d17b7b08","block_type":"box","text":"shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":408,"box":{"x":116,"y":622,"width":765,"height":12}},{"id":"0230eb65-f0db-418e-a993-3ab4f2be62c4","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a","page_number":408,"box":{"x":117,"y":637,"width":702,"height":12}},{"id":"9271d26c-c1d2-427f-a484-696b19eb1686","block_type":"box","text":"stockholder-owned corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by","page_number":408,"box":{"x":116,"y":653,"width":750,"height":12}},{"id":"69e886d4-572b-4139-a42a-012caf2d4798","block_type":"box","text":"the United States or by any Federal Home Loan Banks and do not constitute a debt or obligation of the","page_number":408,"box":{"x":116,"y":668,"width":763,"height":12}},{"id":"c4dea922-19de-47b1-9aa3-c8b8474b6c06","block_type":"box","text":"United States or of any Federal Home Loan Bank. Freddie Macs entitle the holder to timely payment of","page_number":408,"box":{"x":117,"y":684,"width":763,"height":12}},{"id":"d974ce94-90ef-4d9a-9121-249e42d877b2","block_type":"box","text":"interest, which is guaranteed by Freddie Mac. Freddie Mac guarantees either ultimate collection or","page_number":408,"box":{"x":117,"y":700,"width":731,"height":12}},{"id":"29327617-c2b1-4626-ae7a-79b2644ac952","block_type":"box","text":"timely payment of all principal payments on the underlying mortgage loans. While Freddie Mac","page_number":408,"box":{"x":116,"y":715,"width":702,"height":12}},{"id":"6dcdc9e6-4f1e-495e-bac4-e647e0080e92","block_type":"box","text":"generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due on","page_number":408,"box":{"x":116,"y":730,"width":747,"height":13}},{"id":"a1295f09-83fb-411a-b8f6-d7bdaa85dcdf","block_type":"box","text":"account of its guarantee of ultimate payment of principal at any time after default on an underlying","page_number":408,"box":{"x":116,"y":746,"width":726,"height":12}},{"id":"2c1fdb92-ba91-4956-906b-16a2d3a0db4c","block_type":"box","text":"mortgage, but in no event later than one year after it becomes payable.","page_number":408,"box":{"x":117,"y":761,"width":526,"height":13}},{"id":"08e4c7e6-5b42-4d2b-9e0a-7fdb2cd7445d","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and","page_number":408,"box":{"x":117,"y":789,"width":724,"height":12}},{"id":"83ed98fe-5a91-4755-8790-1d2e8f9e51d2","block_type":"box","text":"Freddie Mac mortgage pass-through securities and are issued by originators of and investors in","page_number":408,"box":{"x":117,"y":804,"width":708,"height":12}},{"id":"c29418c8-b451-4678-bdd6-e3aa36a99fdf","block_type":"box","text":"mortgage loans, including depository institutions, mortgage banks, investment banks and special","page_number":408,"box":{"x":117,"y":820,"width":716,"height":12}},{"id":"7db4794d-e93f-43f7-b240-2b776c0e0388","block_type":"box","text":"purpose subsidiaries of the foregoing.","page_number":408,"box":{"x":117,"y":835,"width":284,"height":12}},{"id":"1ef977b0-765f-4ed6-8cef-2a5b68899cde","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than","page_number":408,"box":{"x":117,"y":862,"width":747,"height":12}},{"id":"e7d22ccc-7694-42ae-bb76-766c2a48cfd2","block_type":"box","text":"government and government-related pools because there are no direct or indirect government or","page_number":408,"box":{"x":116,"y":878,"width":723,"height":12}},{"id":"846509b7-8bed-48d6-963e-39718b0dc286","block_type":"box","text":"II-69","page_number":408,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c4a558cb-69b9-4696-bf24-b0d67992fff2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":408,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"33865284-6010-4990-9ccc-25de5e3fe4ee","block_type":"box","text":"agency guarantees of payments in the private pools. However, timely payment of interest and principal","page_number":409,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"d08842c7-7166-42b9-bff8-35c6f786d120","block_type":"box","text":"of these pools may be supported by various forms of insurance or guarantees, including individual","page_number":409,"box":{"x":116,"y":102,"width":732,"height":13}},{"id":"72a4194b-0010-4c76-98f4-b0e5b4540289","block_type":"box","text":"loan, title, pool and hazard insurance and letters of credit. The insurance and guarantees are issued by","page_number":409,"box":{"x":117,"y":118,"width":769,"height":12}},{"id":"6e327eab-8368-4edc-9dff-00f99ad8d695","block_type":"box","text":"governmental entities, private insurers and the mortgage poolers. The insurance and guarantees and","page_number":409,"box":{"x":116,"y":134,"width":756,"height":12}},{"id":"103b2172-8159-408d-aca2-fdbbb51f0921","block_type":"box","text":"the creditworthiness of the issuers thereof will be considered in determining whether a mortgage","page_number":409,"box":{"x":116,"y":149,"width":720,"height":12}},{"id":"8a42ad2d-1510-4ca9-a59d-073c795157ac","block_type":"box","text":"related security meets a Fund’s investment quality standards. There can be no assurance that the","page_number":409,"box":{"x":117,"y":165,"width":731,"height":12}},{"id":"d02ad8da-fcfa-400e-a4a0-097a5652ec3c","block_type":"box","text":"private insurers or guarantors can meet their obligations under the insurance policies or guarantee","page_number":409,"box":{"x":117,"y":180,"width":734,"height":12}},{"id":"55c572d2-5e8a-4f6b-9937-bd446fdea015","block_type":"box","text":"arrangements. Private mortgage pass-through securities may be bought without insurance or","page_number":409,"box":{"x":116,"y":196,"width":696,"height":12}},{"id":"b0edb3d8-d18a-4aad-b98e-547e8a41b261","block_type":"box","text":"guarantees if, through an examination of the loan experience and practices of the originator/servicers","page_number":409,"box":{"x":116,"y":211,"width":756,"height":12}},{"id":"1f7e30a0-f9fa-4cb7-887e-4af8f74fe5d3","block_type":"box","text":"and poolers, the Manager determines that the securities meet a Fund’s quality standards. Any","page_number":409,"box":{"x":116,"y":227,"width":703,"height":12}},{"id":"0a1e7013-cada-4c7d-9a69-bdf7c48f7e4c","block_type":"box","text":"mortgage-related securities that are issued by private issuers have some exposure to subprime loans","page_number":409,"box":{"x":117,"y":242,"width":757,"height":12}},{"id":"863b17e5-7e56-4fb0-b3a8-02eb94e4a9a1","block_type":"box","text":"as well as to the mortgage and credit markets generally.","page_number":409,"box":{"x":116,"y":258,"width":422,"height":12}},{"id":"625dd8dc-ba80-4f52-bfae-86a21da009a1","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the","page_number":409,"box":{"x":117,"y":289,"width":707,"height":12}},{"id":"d490ce63-71de-4f52-bee3-ab1a146dd640","block_type":"box","text":"underwriting requirements for the underlying mortgages that are applicable to those mortgage-related","page_number":409,"box":{"x":117,"y":304,"width":757,"height":12}},{"id":"e7d7972d-4f97-4a6c-a0d4-421f7e89d948","block_type":"box","text":"securities that have a government or government-sponsored entity guarantee. As a result, the","page_number":409,"box":{"x":116,"y":320,"width":702,"height":12}},{"id":"b2711739-5e0f-4011-a10e-fea8b2edd62e","block_type":"box","text":"mortgage loans underlying private mortgage-related securities may, and frequently do, have less","page_number":409,"box":{"x":117,"y":335,"width":722,"height":12}},{"id":"a5921c65-68ed-48ad-acde-0feb3572fe02","block_type":"box","text":"favorable collateral, credit risk or other underwriting characteristics than government or government","page_number":409,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"0914c4ca-f58d-481a-9840-dc8cb7024f01","block_type":"box","text":"sponsored mortgage-related securities and have wider variances in a number of terms including","page_number":409,"box":{"x":116,"y":366,"width":717,"height":12}},{"id":"ed1d13d6-02a7-49f8-af2d-0a42cfa37738","block_type":"box","text":"interest rate, term, size, purpose and borrower characteristics. Privately issued pools more frequently","page_number":409,"box":{"x":117,"y":382,"width":755,"height":12}},{"id":"d7d641bc-56fa-45c7-8861-e3655ce9a556","block_type":"box","text":"include second mortgages, high loan-to-value mortgages and manufactured housing loans. The","page_number":409,"box":{"x":117,"y":397,"width":714,"height":12}},{"id":"a06f7d7e-ff65-4085-a014-b10b352f7729","block_type":"box","text":"coupon rates and maturities of the underlying mortgage loans in a private-label mortgage-related","page_number":409,"box":{"x":116,"y":413,"width":723,"height":12}},{"id":"cf86db69-d3ef-4eb3-8150-8cba03936cdf","block_type":"box","text":"securities pool may vary to a greater extent than those included in a government guaranteed pool, and","page_number":409,"box":{"x":116,"y":428,"width":766,"height":12}},{"id":"cf427c6a-8fb7-494a-a9d9-4ff5dba0b4d9","block_type":"box","text":"the pool may include subprime mortgage loans. Subprime loans refer to loans made to borrowers with","page_number":409,"box":{"x":116,"y":444,"width":762,"height":12}},{"id":"d004ef0c-13ba-4ee5-b30a-ca2d4642eaca","block_type":"box","text":"weakened credit histories or with a lower capacity to make timely payments on their loans. For these","page_number":409,"box":{"x":116,"y":459,"width":751,"height":12}},{"id":"a8740dd3-bf74-4d80-b5fb-e3925d7cc069","block_type":"box","text":"reasons, the loans underlying these securities have had in many cases higher default rates than those","page_number":409,"box":{"x":117,"y":475,"width":763,"height":12}},{"id":"33678dac-0bc7-4245-bf4c-749ac7fceba4","block_type":"box","text":"loans that meet government underwriting requirements.","page_number":409,"box":{"x":117,"y":490,"width":416,"height":12}},{"id":"e2a0fde4-f87c-4448-af03-ac03be01256f","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools","page_number":409,"box":{"x":116,"y":521,"width":758,"height":12}},{"id":"5e8e26d2-1816-40dc-9b3f-7c92229aee2c","block_type":"box","text":"that contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting","page_number":409,"box":{"x":116,"y":537,"width":746,"height":12}},{"id":"a50d6e17-9239-40f8-b0c7-497bf92f09e5","block_type":"box","text":"mortgage loan repayments may include a general economic turndown, high unemployment, a general","page_number":409,"box":{"x":117,"y":552,"width":759,"height":12}},{"id":"c886dc01-c903-45b8-93f4-5b9866aa2095","block_type":"box","text":"slowdown in the real estate market, a drop in the market prices of real estate, or an increase in interest","page_number":409,"box":{"x":116,"y":568,"width":768,"height":12}},{"id":"15a78daf-479f-44e3-b196-39e7b50a69ed","block_type":"box","text":"rates resulting in higher mortgage payments by holders of adjustable rate mortgages.","page_number":409,"box":{"x":117,"y":583,"width":637,"height":12}},{"id":"abedac51-03a8-4b7f-bc36-acaad078fa32","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited","page_number":409,"box":{"x":117,"y":614,"width":767,"height":12}},{"id":"1813b987-a86b-40e1-8076-dda298d1c0ec","block_type":"box","text":"market for the securities, especially when there is a perceived weakness in the mortgage and real","page_number":409,"box":{"x":117,"y":630,"width":729,"height":12}},{"id":"8f1f662a-23f5-499e-86e2-87810642a4bd","block_type":"box","text":"estate market sectors. Without an active trading market, mortgage-related securities held in a Fund’s","page_number":409,"box":{"x":116,"y":645,"width":753,"height":12}},{"id":"b4a732fc-a37d-4f13-8607-6fbf72288bff","block_type":"box","text":"portfolio may be particularly difficult to value because of the complexities involved in assessing the","page_number":409,"box":{"x":117,"y":661,"width":729,"height":12}},{"id":"740f3a99-f58c-4e26-b329-57a1b7db1475","block_type":"box","text":"value of the underlying mortgage loans.","page_number":409,"box":{"x":116,"y":676,"width":293,"height":12}},{"id":"ccd6545a-0c23-4d6c-bec1-a9026d12df44","block_type":"box","text":"Collateralized Mortgage Obligations (“CMOs”).","page_number":409,"box":{"x":117,"y":707,"width":343,"height":12}},{"id":"69296e9d-e36d-46eb-bb6c-56667a90defb","block_type":"box","text":"CMOs are debt obligations collateralized by residential","page_number":409,"box":{"x":467,"y":707,"width":404,"height":12}},{"id":"68de5907-5b2a-491e-b352-901f69dc5d6e","block_type":"box","text":"or commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest","page_number":409,"box":{"x":116,"y":723,"width":758,"height":12}},{"id":"c6cca5d2-ade1-4d3c-b67c-addbb3bd479d","block_type":"box","text":"and prepaid principal are generally paid monthly. CMOs may be collateralized by whole mortgage","page_number":409,"box":{"x":116,"y":738,"width":724,"height":12}},{"id":"bb211182-f61b-4546-8649-de6073d2d8e9","block_type":"box","text":"loans or private mortgage pass-through securities but are more typically collateralized by portfolios of","page_number":409,"box":{"x":117,"y":754,"width":751,"height":12}},{"id":"396409b2-75e3-434f-9fa0-907a64005988","block_type":"box","text":"mortgage pass-through securities guaranteed by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer","page_number":409,"box":{"x":117,"y":769,"width":761,"height":12}},{"id":"e0df06ae-c8e2-4d9f-ba3f-cfa0f437fd97","block_type":"box","text":"of a series of CMOs may elect to be treated as a Real Estate Mortgage Investment Conduit (“REMIC”).","page_number":409,"box":{"x":116,"y":785,"width":763,"height":12}},{"id":"01600ef3-180e-42fa-8ad0-e61467561be7","block_type":"box","text":"All future references to CMOs also include REMICs.","page_number":409,"box":{"x":116,"y":800,"width":386,"height":10}},{"id":"b40defba-1900-4681-a8ac-8eafd45b8593","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific","page_number":409,"box":{"x":117,"y":831,"width":746,"height":12}},{"id":"89b49509-d21e-425b-9f89-8df205931373","block_type":"box","text":"adjustable or fixed interest rate, and bearing a different stated maturity date and each must be fully","page_number":409,"box":{"x":116,"y":847,"width":738,"height":12}},{"id":"7a2b6eb6-5693-4461-a82b-db96a2afb871","block_type":"box","text":"retired no later than its final distribution date. Actual maturity and average life will depend upon the","page_number":409,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"90708e80-cda7-490c-9ec7-81dafeedd499","block_type":"box","text":"prepayment experience of the collateral, which is ordinarily unrelated to the stated maturity date.","page_number":409,"box":{"x":117,"y":878,"width":719,"height":12}},{"id":"b2c7c08c-607e-4e53-a5af-26c1cba6cbe7","block_type":"box","text":"II-70","page_number":409,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"bf6f7398-67f3-4f32-af4b-cfa00ac8fc77","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":409,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"af1baa75-9d7d-4124-9ba1-0a0e3d9f69fd","block_type":"box","text":"CMOs often provide for a modified form of call protection through a de facto breakdown of the","page_number":410,"box":{"x":117,"y":87,"width":700,"height":12}},{"id":"639d14a1-0343-4409-b315-324e1661c205","block_type":"box","text":"underlying pool of mortgages according to how quickly the loans are repaid. Monthly payment of","page_number":410,"box":{"x":117,"y":102,"width":718,"height":13}},{"id":"4e383a44-dee7-4fa5-9bbc-79e102c55766","block_type":"box","text":"principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":410,"box":{"x":117,"y":118,"width":740,"height":12}},{"id":"f21eff9b-a0c1-4184-9416-6da6a155e17d","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually","page_number":410,"box":{"x":117,"y":134,"width":729,"height":12}},{"id":"57f3b0c5-0c40-410d-a01a-fa862a63eb67","block_type":"box","text":"receive principal only after the first class has been retired. An investor may be partially protected","page_number":410,"box":{"x":117,"y":149,"width":719,"height":12}},{"id":"e6166a55-d9be-416d-bd4d-d1cd232cebd2","block_type":"box","text":"against a sooner than desired return of principal because of the sequential payments.","page_number":410,"box":{"x":116,"y":165,"width":640,"height":12}},{"id":"345a88eb-b0c2-435a-92fa-74ef2e28d68a","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":410,"box":{"x":117,"y":196,"width":755,"height":12}},{"id":"0b6d0707-b8e4-453a-9621-48208b246005","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by","page_number":410,"box":{"x":117,"y":211,"width":771,"height":12}},{"id":"c046d122-df77-44ed-a57b-545df4bb850c","block_type":"box","text":"the Investment Company Act on investments by a Fund in other investment companies. In addition, in","page_number":410,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"7c116e11-a7e2-4228-9352-e669cfc3062a","block_type":"box","text":"reliance on an earlier Commission interpretation, a Fund’s investments in certain other qualifying","page_number":410,"box":{"x":117,"y":242,"width":721,"height":12}},{"id":"32f7264d-fe2e-491d-ba48-24f98da014c6","block_type":"box","text":"CMOs, which cannot or do not rely on the rule, are also not subject to the limitation of the Investment","page_number":410,"box":{"x":117,"y":258,"width":753,"height":12}},{"id":"3e67d43d-9ee6-406c-a41f-e194f6306198","block_type":"box","text":"Company Act on acquiring interests in other investment companies. In order to be able to rely on the","page_number":410,"box":{"x":117,"y":273,"width":750,"height":12}},{"id":"d8af98dd-2081-43cb-8e17-818784978069","block_type":"box","text":"Commission’s interpretation, these CMOs must be unmanaged, fixed asset issuers, that: (1) invest","page_number":410,"box":{"x":117,"y":289,"width":736,"height":12}},{"id":"b2367cda-cb38-44dc-997b-5bae223b3c87","block_type":"box","text":"primarily in mortgage-backed securities; (2) do not issue redeemable securities; (3) operate under","page_number":410,"box":{"x":117,"y":304,"width":730,"height":12}},{"id":"939a61bb-bd98-42d2-b5ab-a256a226fcf3","block_type":"box","text":"general exemptive orders exempting them from all provisions of the Investment Company Act; and","page_number":410,"box":{"x":116,"y":320,"width":736,"height":12}},{"id":"b5c92964-4bf1-4ea5-93c2-01a0b80a4cf6","block_type":"box","text":"(4) are not registered or regulated under the Investment Company Act as investment companies. To","page_number":410,"box":{"x":117,"y":335,"width":748,"height":12}},{"id":"c387c7dc-b410-4de5-93a9-0687daa8c141","block_type":"box","text":"the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above","page_number":410,"box":{"x":116,"y":351,"width":674,"height":12}},{"id":"9a4a014b-5ddb-4895-a995-30297d949a7e","block_type":"box","text":"requirements, the Fund may not invest more than 10% of its assets in all such entities and may not","page_number":410,"box":{"x":117,"y":366,"width":738,"height":12}},{"id":"a0061ad2-80b1-4178-8cab-463af332941f","block_type":"box","text":"acquire more than 3% of the voting securities of any single such entity.","page_number":410,"box":{"x":116,"y":382,"width":530,"height":12}},{"id":"1ffc85a2-2dd3-410a-9041-ff2fd8663cea","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating","page_number":410,"box":{"x":116,"y":413,"width":765,"height":12}},{"id":"1806cc65-5981-41cd-9be7-a49f1d79a894","block_type":"box","text":"rate CMOs. Parallel pay CMOs are structured to provide payments of principal on each payment date","page_number":410,"box":{"x":117,"y":428,"width":757,"height":12}},{"id":"f841a409-f0a9-4755-bb85-29df9e7e2234","block_type":"box","text":"to more than one class, concurrently on a proportionate or disproportionate basis. These simultaneous","page_number":410,"box":{"x":116,"y":444,"width":766,"height":12}},{"id":"bd9a9876-97d7-4302-9f73-99b3919ef92d","block_type":"box","text":"payments are taken into account in calculating the final distribution date of each class. Sequential pay","page_number":410,"box":{"x":117,"y":459,"width":759,"height":12}},{"id":"ad6f5bdc-5187-4fda-b5c5-6c4f6c5d03c7","block_type":"box","text":"CMOs generally pay principal to only one class at a time while paying interest to several classes. A","page_number":410,"box":{"x":117,"y":475,"width":739,"height":12}},{"id":"6eef28a0-ea72-4738-8e0d-54ff250cec5d","block_type":"box","text":"wide variety of REMIC Certificates may be issued in the parallel pay or sequential pay structures.","page_number":410,"box":{"x":116,"y":490,"width":726,"height":12}},{"id":"e3e28e87-d95f-4b6f-ba84-3cede80bf911","block_type":"box","text":"These securities include accrual certificates (also known as “Z-Bonds”), which only accrue interest at a","page_number":410,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"a2b2c3c2-e557-45a6-9424-9d90483ea329","block_type":"box","text":"specified rate until all other certificates having an earlier final distribution date have been retired and","page_number":410,"box":{"x":116,"y":521,"width":746,"height":12}},{"id":"6d3a5d4e-8e67-458b-b492-27e9a728e895","block_type":"box","text":"are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose","page_number":410,"box":{"x":116,"y":537,"width":718,"height":12}},{"id":"ca81adae-709b-417b-8e52-2734cacf7d34","block_type":"box","text":"coupon rate fluctuates according to some formula related to an existing market index or rate. Typical","page_number":410,"box":{"x":116,"y":552,"width":750,"height":12}},{"id":"d995dc76-783c-419a-8e30-a1d33244b6e1","block_type":"box","text":"indices would include the eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and","page_number":410,"box":{"x":117,"y":568,"width":758,"height":12}},{"id":"547c8f21-fbf5-4772-9833-8d67c2e17923","block_type":"box","text":"ten-year Treasury yields.","page_number":410,"box":{"x":116,"y":583,"width":190,"height":12}},{"id":"3be865a4-90a9-4d9d-9d4d-ed1d8aaadf7d","block_type":"box","text":"Classes of CMOs also include planned amortization","page_number":410,"box":{"x":117,"y":614,"width":380,"height":12}},{"id":"0326c9aa-be70-4147-b107-971992d7c84b","block_type":"box","text":"classes (“PACs”) and targeted amortization classes","page_number":410,"box":{"x":498,"y":614,"width":378,"height":12}},{"id":"3042bc79-a008-4290-b985-07b9822cbf5c","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a s","page_number":410,"box":{"x":117,"y":630,"width":402,"height":12}},{"id":"258ba783-d784-4500-a189-7670b0a5d16c","block_type":"box","text":"pecified amount of principal on each payment","page_number":410,"box":{"x":521,"y":630,"width":334,"height":12}},{"id":"32bef2ec-cb8f-417a-a9ea-a2957c065cf3","block_type":"box","text":"date. The scheduled principal payments for PAC Certifi","page_number":410,"box":{"x":116,"y":645,"width":399,"height":12}},{"id":"33f3a21f-911f-456b-8f4e-c50ed4cc043c","block_type":"box","text":"cates generally have the highest priority on each","page_number":410,"box":{"x":517,"y":645,"width":357,"height":12}},{"id":"87896c58-534a-4db1-b6a8-985c3551838a","block_type":"box","text":"payment date after interest due has been paid to all","page_number":410,"box":{"x":117,"y":661,"width":373,"height":12}},{"id":"6475cc12-8e9d-4b7a-a73b-ea73a8459418","block_type":"box","text":"classes entitled to receive interest currently.","page_number":410,"box":{"x":496,"y":661,"width":317,"height":12}},{"id":"655ba0c7-c3ba-4223-b184-aea78cc2bcb0","block_type":"box","text":"Shortfalls, if any, are added to the amount payabl","page_number":410,"box":{"x":116,"y":676,"width":357,"height":12}},{"id":"16373a62-aec4-4e2f-a47c-9c17c7d75e78","block_type":"box","text":"e on the next payment date. The PAC Certificate","page_number":410,"box":{"x":475,"y":676,"width":353,"height":12}},{"id":"da932ba0-4019-4b25-955f-3a981e595f21","block_type":"box","text":"payment schedule is taken into account in calculating","page_number":410,"box":{"x":117,"y":692,"width":386,"height":12}},{"id":"57861e43-b784-400b-94d8-715c7761af0c","block_type":"box","text":"the final distribution date of each class of PAC. In","page_number":410,"box":{"x":508,"y":692,"width":357,"height":9}},{"id":"5030f3ab-8807-498f-bdf8-73a2f10e3431","block_type":"box","text":"order to create PAC tranches, one or more tranches gener","page_number":410,"box":{"x":116,"y":707,"width":426,"height":12}},{"id":"3c0c17f5-85c2-4ab4-bcbe-aec20711fa45","block_type":"box","text":"ally must be created that absorb most of the","page_number":410,"box":{"x":542,"y":707,"width":320,"height":12}},{"id":"81855c60-08c1-4d3f-a9b9-01550183a1c3","block_type":"box","text":"volatility in the underlying mortgage assets. These","page_number":410,"box":{"x":116,"y":723,"width":364,"height":12}},{"id":"0c588475-08ab-4303-af21-eda5710ece2b","block_type":"box","text":"tranches (often called “supports” or “companion”","page_number":410,"box":{"x":485,"y":723,"width":351,"height":12}},{"id":"fb7ae3b7-e539-42d5-b8b4-06713eef2524","block_type":"box","text":"tranches) tend to have market prices and yields","page_number":410,"box":{"x":116,"y":738,"width":345,"height":12}},{"id":"5b2e85ce-bf4b-4c50-b67b-b0ff66d0acaa","block_type":"box","text":"that are more volatile than the PAC classes.","page_number":410,"box":{"x":466,"y":738,"width":319,"height":10}},{"id":"fe568404-34b0-4dc0-806b-aa7bbc8df86b","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each","page_number":410,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"a2242a01-13e4-42f0-a466-139ffb5f02da","block_type":"box","text":"payment date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however,","page_number":410,"box":{"x":117,"y":785,"width":732,"height":12}},{"id":"9964618b-07cc-4ef5-b646-6b6a2c192230","block_type":"box","text":"remains in effect as long as prepayment rates on the underlying mortgages do not exceed certain","page_number":410,"box":{"x":117,"y":800,"width":722,"height":12}},{"id":"f9c81548-a7a6-459c-8336-6967f1d2a438","block_type":"box","text":"ranges. In contrast, a TAC provides investors with protection, to a certain level, against either faster","page_number":410,"box":{"x":117,"y":816,"width":738,"height":12}},{"id":"d2d47845-7005-4d3a-826a-9296156c8002","block_type":"box","text":"than expected or slower than expected prepayment rates, but not both. TACs thus provide more cash","page_number":410,"box":{"x":116,"y":831,"width":759,"height":12}},{"id":"7a656e4e-b8c8-4ef8-87bf-e217000abf8d","block_type":"box","text":"flow stability than a regular sequential paying class, but less than a PAC. TACs also tend to have","page_number":410,"box":{"x":116,"y":847,"width":725,"height":12}},{"id":"f30da53b-75af-4a65-92d5-214af239a7e4","block_type":"box","text":"market prices and yields that are more volatile than PACs.","page_number":410,"box":{"x":117,"y":862,"width":437,"height":12}},{"id":"48208fff-f327-4263-a558-0b40ca36af94","block_type":"box","text":"II-71","page_number":410,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"cc6c9927-625e-403b-9f88-8b43dbcb024d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":410,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3c4a6ff8-58fa-4c0b-9d4d-0d20b30ee791","block_type":"box","text":"Adjustable Rate Mortgage Securities.","page_number":411,"box":{"x":115,"y":87,"width":277,"height":12}},{"id":"2a67f8a2-8f41-4ab2-972a-aa82e37e2a4f","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through","page_number":411,"box":{"x":393,"y":87,"width":479,"height":12}},{"id":"00cbea7f-8811-47ff-8b2d-f9de7a7187ba","block_type":"box","text":"securities collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for","page_number":411,"box":{"x":116,"y":102,"width":706,"height":13}},{"id":"e8dfa797-a533-4341-8dda-659313c5c409","block_type":"box","text":"inclusion in a mortgage pool generally provide for a fixed initial mortgage interest rate for a set number","page_number":411,"box":{"x":117,"y":118,"width":764,"height":12}},{"id":"7447bf88-9831-4257-8a1c-bdef49f34ea9","block_type":"box","text":"of scheduled monthly payments. After that schedule of payments has been completed, the interest","page_number":411,"box":{"x":116,"y":134,"width":736,"height":12}},{"id":"9c6d3f81-d53c-4c05-a5f3-859ef18e56a2","block_type":"box","text":"rates are subject to periodic adjustment based on changes to a designated benchmark index.","page_number":411,"box":{"x":117,"y":149,"width":697,"height":12}},{"id":"21407221-06d7-4084-9926-9fc8271fe4dc","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary","page_number":411,"box":{"x":116,"y":180,"width":741,"height":12}},{"id":"fc5646b1-3576-4407-8757-18fed1348fff","block_type":"box","text":"over the lifetime of the security. In addition, certain ARMs provide for additional limitations on the","page_number":411,"box":{"x":116,"y":196,"width":722,"height":12}},{"id":"f8d0c42f-8cc5-4e4e-b129-8643510e7da0","block_type":"box","text":"maximum amount by which the mortgage interest rate may adjust for any single adjustment period. In","page_number":411,"box":{"x":117,"y":211,"width":758,"height":12}},{"id":"8e816a3d-ef3b-4398-b1cb-0fd414f6ce5c","block_type":"box","text":"the event that market rates of interest rise more rapidly to levels above that of the ARM’s maximum","page_number":411,"box":{"x":116,"y":227,"width":741,"height":12}},{"id":"0562b6bf-c671-4436-8f49-8371e169c973","block_type":"box","text":"rate, the ARM’s coupon may represent a below market rate of interest. In these circumstances, the","page_number":411,"box":{"x":117,"y":242,"width":737,"height":12}},{"id":"353ca30b-f402-455a-a217-51cfe36ca92e","block_type":"box","text":"market value of the ARM security will likely have fallen.","page_number":411,"box":{"x":117,"y":258,"width":412,"height":12}},{"id":"b7351af1-87e2-45f8-a3d2-9ddceb67cabb","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a","page_number":411,"box":{"x":117,"y":289,"width":728,"height":12}},{"id":"20bb7e29-d002-4851-999c-ce329fd90611","block_type":"box","text":"monthly payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is","page_number":411,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"a33734e5-26c4-47d5-83b7-e7e088293303","block_type":"box","text":"added to the principal balance of the mortgage loan, which is repaid through future monthly payments.","page_number":411,"box":{"x":116,"y":320,"width":764,"height":12}},{"id":"8eeda8a8-8265-48c6-abb9-71fc95c4f0f0","block_type":"box","text":"If the monthly payment for such an instrument exceeds the sum of the interest accrued at the","page_number":411,"box":{"x":117,"y":335,"width":695,"height":12}},{"id":"87c256a6-4c9b-45b6-9732-8c82194021af","block_type":"box","text":"applicable mortgage interest rate and the principal payment required at such point to amortize the","page_number":411,"box":{"x":116,"y":351,"width":730,"height":12}},{"id":"4b7a8e78-6eaf-41d7-b520-7a33d8d0529f","block_type":"box","text":"outstanding principal balance over the remaining term of the loan, the excess is then used to reduce","page_number":411,"box":{"x":116,"y":366,"width":748,"height":12}},{"id":"053061c6-4d4c-4622-ae9b-adff57322b9c","block_type":"box","text":"the outstanding principal balance of the ARM.","page_number":411,"box":{"x":116,"y":382,"width":344,"height":12}},{"id":"1bd35fa4-813a-4eac-8bc5-777c78b331a0","block_type":"box","text":"CMO Residuals.","page_number":411,"box":{"x":117,"y":413,"width":120,"height":9}},{"id":"f2ee6a98-a0e4-4d3a-9736-9ec8f6c659f1","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or","page_number":411,"box":{"x":238,"y":413,"width":546,"height":12}},{"id":"278982e1-c16e-4e92-a276-e756e7e10d15","block_type":"box","text":"instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans,","page_number":411,"box":{"x":117,"y":428,"width":750,"height":12}},{"id":"0ca84bcc-860f-429e-a97e-c3137851d4a4","block_type":"box","text":"including savings and loan associations, homebuilders, mortgage banks, commercial banks,","page_number":411,"box":{"x":117,"y":444,"width":688,"height":12}},{"id":"e42e2399-a6a4-44f3-ad9f-66744a39b093","block_type":"box","text":"investment banks, and special purpose entities of the foregoing. The cash flow generated by the","page_number":411,"box":{"x":117,"y":459,"width":718,"height":12}},{"id":"2523ed1f-9d21-4324-a9e9-d28e9b7d9db0","block_type":"box","text":"mortgage assets underlying a series of CMOs is applied first to make required payments of principal","page_number":411,"box":{"x":117,"y":475,"width":747,"height":12}},{"id":"bec45d23-2b62-4a0f-bf8c-0ed344368fa7","block_type":"box","text":"and interest on the CMOs and second to pay the related administrative expenses and any","page_number":411,"box":{"x":116,"y":490,"width":673,"height":12}},{"id":"3f92e778-2404-4843-925f-1261f1685adb","block_type":"box","text":"management fees of the issuer. The residual in a CMO structure generally represents the interest in","page_number":411,"box":{"x":117,"y":506,"width":746,"height":12}},{"id":"4469f8e4-b9ad-4e83-99eb-37995c94bfb0","block_type":"box","text":"any excess cash flow remaining after making the foregoing payments. Each payment of such excess","page_number":411,"box":{"x":116,"y":521,"width":753,"height":12}},{"id":"8e3595d7-0361-4e0f-b784-53e269e09970","block_type":"box","text":"cash flow to a holder of the related CMO residual represents income and/or a return of capital. The","page_number":411,"box":{"x":116,"y":537,"width":738,"height":12}},{"id":"0956645f-cb15-42af-99e0-98cb465fd066","block_type":"box","text":"amount of residual cash flow resulting from a CMO will depend on, among other things, the","page_number":411,"box":{"x":116,"y":552,"width":681,"height":12}},{"id":"4102a33c-0b63-4775-bc4c-bcb2c551ffaa","block_type":"box","text":"characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates,","page_number":411,"box":{"x":116,"y":568,"width":768,"height":12}},{"id":"d7f8f474-9f60-4103-8f5d-d43353aafac9","block_type":"box","text":"the amount of administrative expenses and the prepayment experience on the mortgage assets. In","page_number":411,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"4dffa749-8183-430e-8901-b65fb42f3729","block_type":"box","text":"part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the related","page_number":411,"box":{"x":117,"y":599,"width":748,"height":12}},{"id":"596ca8cc-50d7-43ae-969e-cd511cece37b","block_type":"box","text":"underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":411,"box":{"x":117,"y":614,"width":770,"height":12}},{"id":"161a8997-c4d0-422f-baf6-481d557e5655","block_type":"box","text":"securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate,","page_number":411,"box":{"x":116,"y":630,"width":746,"height":12}},{"id":"277f7d28-c84d-45cb-a170-a1d120ffe7b9","block_type":"box","text":"the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the","page_number":411,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"ece452ff-6d90-4a3f-8d2e-16537009555b","block_type":"box","text":"level of the index upon which interest rate adjustments are based. In certain circumstances, a Fund","page_number":411,"box":{"x":117,"y":661,"width":735,"height":12}},{"id":"5805eb21-3bac-411d-9f3e-cada87d6d8af","block_type":"box","text":"may fail to recoup fully its initial investment in a CMO residual.","page_number":411,"box":{"x":117,"y":676,"width":459,"height":12}},{"id":"84ea1401-26c9-4924-88bf-3be1ab2d90d9","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more","page_number":411,"box":{"x":117,"y":707,"width":704,"height":12}},{"id":"3ee0d2d0-7bf4-40b8-b465-4c72badbb533","block_type":"box","text":"investment banking firms acting as brokers or dealers. Transactions in CMO residuals are generally","page_number":411,"box":{"x":117,"y":723,"width":739,"height":12}},{"id":"1d20b75d-de2d-4db4-a7fe-5119a923b397","block_type":"box","text":"completed only after careful review of the characteristics of the securities in question. In addition, CMO","page_number":411,"box":{"x":116,"y":738,"width":763,"height":12}},{"id":"7e12f687-0875-44e4-b87f-22a92030201e","block_type":"box","text":"residuals may or, pursuant to an exemption therefrom, may not have been registered under the","page_number":411,"box":{"x":117,"y":754,"width":706,"height":12}},{"id":"d2f96dc1-c07b-496b-873a-a13496aa871f","block_type":"box","text":"Securities Act. Residual interests generally are junior to, and may be significantly more volatile than,","page_number":411,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"e954b0ba-aa89-4b8a-b660-13bf33d85204","block_type":"box","text":"“regular” CMO and REMIC interests. CMO residuals, whether or not registered under the Securities","page_number":411,"box":{"x":116,"y":785,"width":739,"height":12}},{"id":"39452d0a-812b-47d1-84b5-0fefa2bd308e","block_type":"box","text":"Act, may be subject to certain restrictions on transferability.","page_number":411,"box":{"x":116,"y":800,"width":438,"height":12}},{"id":"19c964b9-c171-4e66-b94f-a81b641b3c3e","block_type":"box","text":"Stripped Mortgage-Backed Securities.","page_number":411,"box":{"x":117,"y":831,"width":280,"height":12}},{"id":"b5377212-7e05-45c2-9695-3f7ddbc863f6","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities","page_number":411,"box":{"x":399,"y":831,"width":443,"height":12}},{"id":"23b635c0-69cf-4a32-bf20-b32efe136648","block_type":"box","text":"(“SMBSs”) issued by agencies or instrumentalities of the United States. SMBSs are derivative multi","page_number":411,"box":{"x":117,"y":847,"width":740,"height":12}},{"id":"89c64329-fed6-4525-be56-86f9aa8922ba","block_type":"box","text":"class mortgage-backed securities. SMBS arrangements commonly involve two classes of securities","page_number":411,"box":{"x":116,"y":862,"width":744,"height":12}},{"id":"b8f2fe90-9947-43d0-a49d-7d5cb632480c","block_type":"box","text":"that receive different proportions of the interest and principal distributions on a pool of mortgage","page_number":411,"box":{"x":116,"y":878,"width":716,"height":12}},{"id":"c06fd4fd-830b-44d1-bb28-e76d7d6293a3","block_type":"box","text":"II-72","page_number":411,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"b8d6a7e5-754a-4450-8492-2e82b8eb96cc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":411,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"81a21817-d1a4-4812-9bac-ee424e853caf","block_type":"box","text":"assets. A common variety of SMBS is where one class (the principal only or PO class) receives some","page_number":412,"box":{"x":116,"y":87,"width":759,"height":12}},{"id":"078afb51-51f9-4eff-b81b-17e4636896bd","block_type":"box","text":"of the interest and most of the principal from the underlying assets, while the other class (the interest","page_number":412,"box":{"x":116,"y":102,"width":752,"height":13}},{"id":"007ebfd5-3877-4739-83fc-81b8ec771ec2","block_type":"box","text":"only or IO class) receives most of the interest and the remainder of the principal. In the most extreme","page_number":412,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"b0a31e0a-d96d-45eb-aa3d-2039a2fb0fb0","block_type":"box","text":"case, the IO class receives all of the interest, while","page_number":412,"box":{"x":116,"y":134,"width":382,"height":11}},{"id":"016a1c57-64b9-478d-8836-f31fa35f9ac4","block_type":"box","text":"the PO class receives all of the principal. While a","page_number":412,"box":{"x":498,"y":134,"width":368,"height":11}},{"id":"63986b1f-33c8-4a29-b63d-8f4ae47b35d6","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO","page_number":412,"box":{"x":117,"y":149,"width":758,"height":12}},{"id":"eddead92-dbe9-4d21-9094-476a6897f7bd","block_type":"box","text":"class. The yield to maturity of an IO class is extremely sensitive to the rate of principal payments","page_number":412,"box":{"x":116,"y":165,"width":720,"height":12}},{"id":"fffde5a5-e0eb-4c22-86be-ad54d5be4df1","block_type":"box","text":"(including prepayments) on the related underlying assets, and a rapid rate of principal prepayments in","page_number":412,"box":{"x":117,"y":180,"width":759,"height":12}},{"id":"4d3dd3db-094d-4c33-980b-7ab3e8022fb5","block_type":"box","text":"excess of that considered in pricing the securities will have a material adverse effect on an IO","page_number":412,"box":{"x":116,"y":196,"width":699,"height":12}},{"id":"923cfb74-4e41-4de7-afb6-757a574317f2","block_type":"box","text":"security’s yield to maturity. If the underlying mortgage assets experience greater than anticipated","page_number":412,"box":{"x":116,"y":211,"width":724,"height":12}},{"id":"88344ef7-0b9d-4325-bce6-418c15fc3a04","block_type":"box","text":"payments of principal, a Fund may fail to recoup fully its initial investment in IOs. In addition, there are","page_number":412,"box":{"x":117,"y":227,"width":760,"height":12}},{"id":"d50ecedf-9e36-4166-af72-dd1361c965e9","block_type":"box","text":"certain types of IOs that represent the interest portion of a particular class as opposed to the interest","page_number":412,"box":{"x":116,"y":242,"width":751,"height":12}},{"id":"79f5be00-13fd-483f-990a-433d97a538e3","block_type":"box","text":"portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":412,"box":{"x":117,"y":258,"width":768,"height":12}},{"id":"6666a2b6-00db-4000-be37-c025c73dab80","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above","page_number":412,"box":{"x":117,"y":273,"width":733,"height":12}},{"id":"724cdb40-705f-4729-a2c4-05074c6bb55a","block_type":"box","text":"factors, a Fund generally will purchase IOs only as a component of so called “synthetic” securities. This","page_number":412,"box":{"x":116,"y":289,"width":772,"height":12}},{"id":"bc03e90c-df86-4c66-bc92-e64b4ba053d2","block_type":"box","text":"means that purchases of IOs will be matched with certain purchases of other securities, such as POs,","page_number":412,"box":{"x":117,"y":304,"width":759,"height":12}},{"id":"b9cd367f-5330-4457-8541-bca3c7a1a639","block_type":"box","text":"inverse floating rate CMOs or fixed rate securities; as interest rates fall, presenting a greater risk of","page_number":412,"box":{"x":117,"y":320,"width":737,"height":12}},{"id":"ab924fb0-2a42-4af4-898f-53a34ea92b65","block_type":"box","text":"unanticipated prepayments of principal, the negative effect on a Fund because of its holdings of IOs","page_number":412,"box":{"x":117,"y":335,"width":744,"height":12}},{"id":"73fac640-cb89-4760-b776-d0a56e177cc4","block_type":"box","text":"should be diminished somewhat because of the increased yield on the inverse floating rate CMOs or","page_number":412,"box":{"x":116,"y":351,"width":751,"height":12}},{"id":"719c268a-78b3-4f00-8af3-468da41de932","block_type":"box","text":"the increased appreciation on the POs or fixed rate securities.","page_number":412,"box":{"x":116,"y":366,"width":465,"height":12}},{"id":"9f6b2db7-5ad3-4a0f-a870-903f49faa675","block_type":"box","text":"Tiered Index Bonds.","page_number":412,"box":{"x":118,"y":397,"width":141,"height":10}},{"id":"08992fd6-240a-4424-b22f-727a617202f4","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a","page_number":412,"box":{"x":260,"y":397,"width":597,"height":12}},{"id":"b5c3bf57-d76b-438f-88d5-7fd535633483","block_type":"box","text":"tiered index bond is tied to a specified index or market ra","page_number":412,"box":{"x":116,"y":413,"width":402,"height":12}},{"id":"4388c1c1-a55b-4f71-bfae-1e8cda62a98d","block_type":"box","text":"te. So long as this index or market rate is below a","page_number":412,"box":{"x":518,"y":413,"width":356,"height":12}},{"id":"c4fb29a1-69ce-401e-82cf-cbba57de15c0","block_type":"box","text":"predetermined “strike” rate, the interest rate on t","page_number":412,"box":{"x":117,"y":428,"width":340,"height":12}},{"id":"fc10242b-bdf5-4182-8055-8a9c89cd02b4","block_type":"box","text":"he tiered index bond remains fixed. If, however, the","page_number":412,"box":{"x":457,"y":428,"width":368,"height":11}},{"id":"056a76f0-3aac-4c4f-8bcb-0e2c9ac087fb","block_type":"box","text":"specified index or market rate rises above the “strike","page_number":412,"box":{"x":116,"y":444,"width":372,"height":12}},{"id":"bc9b6969-ce58-428a-b07a-c41672916482","block_type":"box","text":"” rate, the interest rate of the tiered index bond will","page_number":412,"box":{"x":488,"y":444,"width":361,"height":11}},{"id":"fe742180-1fab-42dd-a56f-749b144ab9ad","block_type":"box","text":"decrease. Thus, under these circumstances, the interest","page_number":412,"box":{"x":116,"y":459,"width":401,"height":11}},{"id":"b287ee7e-88ec-44af-9e3c-fa952bc21f77","block_type":"box","text":"t rate on a tiered index bond, like an inverse floater,","page_number":412,"box":{"x":517,"y":459,"width":364,"height":11}},{"id":"245fc379-8eed-4554-bdd9-ffa7698d9df9","block_type":"box","text":"will move in the opposite direction of prevailing interest ra","page_number":412,"box":{"x":116,"y":475,"width":405,"height":12}},{"id":"88fabdcc-ccc4-4324-b032-f964991bbcbd","block_type":"box","text":"tes, with the result that t","page_number":412,"box":{"x":522,"y":475,"width":169,"height":11}},{"id":"07a85c9a-e27c-43d5-8499-4366408a6940","block_type":"box","text":"he price of the tiered index","page_number":412,"box":{"x":692,"y":475,"width":192,"height":12}},{"id":"39436378-2853-4e41-9a8f-99a7b58d2134","block_type":"box","text":"bond may be considerably more volatile than that of a fixed-rate bond.","page_number":412,"box":{"x":117,"y":490,"width":501,"height":12}},{"id":"a4d3fc3e-214c-41a5-be69-036161fa1582","block_type":"box","text":"TBA Commitments.","page_number":412,"box":{"x":118,"y":521,"width":142,"height":10}},{"id":"625f2d92-1467-48bd-93f4-9fdedb4d91e0","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA","page_number":412,"box":{"x":262,"y":521,"width":583,"height":12}},{"id":"69e2ebc8-7b56-4c11-a391-b0ca052c4923","block_type":"box","text":"commitments are forward agreements for the purchase or sale of securities, including mortgage","page_number":412,"box":{"x":116,"y":537,"width":716,"height":12}},{"id":"74c171ff-d1c7-4745-a004-420c64f6e42f","block_type":"box","text":"backed securities for a fixed price, with payment and delivery on an agreed upon future settlement","page_number":412,"box":{"x":117,"y":552,"width":733,"height":12}},{"id":"d9c1b8df-b1e5-470b-99ed-437d5f481809","block_type":"box","text":"date. The specific securities to be delivered are not identified at the trade date. However, delivered","page_number":412,"box":{"x":116,"y":568,"width":737,"height":12}},{"id":"fcfde550-9c19-4bec-b1cd-01a9967086d0","block_type":"box","text":"securities must meet specified terms, including issuer, rate and mortgage terms. When the Fund enters","page_number":412,"box":{"x":116,"y":583,"width":772,"height":12}},{"id":"2f23751a-fa48-4a17-856b-60cc153e4f46","block_type":"box","text":"into a TBA commitment for the sale of mortgage-backed securities for a fixed price, with payment and","page_number":412,"box":{"x":117,"y":599,"width":758,"height":12}},{"id":"7c8dd03c-0ce7-4489-b690-fccbf73840a6","block_type":"box","text":"delivery on an agreed upon future settlement date (which may be referred to as having a short position","page_number":412,"box":{"x":116,"y":614,"width":767,"height":12}},{"id":"01039207-0538-4207-927a-cda9aed55586","block_type":"box","text":"in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":412,"box":{"x":117,"y":630,"width":712,"height":12}},{"id":"a76e26f7-c788-4efe-ab2e-7859b0d997f9","block_type":"box","text":"required to be delivered. See “— When-Issued Securities, Delayed Delivery Securities and Forward","page_number":412,"box":{"x":117,"y":645,"width":743,"height":12}},{"id":"4056f5fe-042c-4d54-8829-a2d53ca2ca35","block_type":"box","text":"Commitments” below.","page_number":412,"box":{"x":117,"y":661,"width":160,"height":9}},{"id":"b57657e6-1575-4622-975e-bfc5989f606f","block_type":"box","text":"Mortgage Dollar Rolls.","page_number":412,"box":{"x":116,"y":692,"width":164,"height":12}},{"id":"e740218e-41d0-43c0-a622-8ed7ea87d198","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll","page_number":412,"box":{"x":288,"y":692,"width":550,"height":12}},{"id":"dd9edd86-8a87-4534-927d-083ca6f9c47c","block_type":"box","text":"transaction, a Fund sells mortgage-backed securities for delivery in the current month and","page_number":412,"box":{"x":116,"y":707,"width":667,"height":12}},{"id":"0b69f1c1-7fc0-4d96-a0fe-06025977f559","block_type":"box","text":"simultaneously contracts to repurchase substantially similar securities on a specified future date. The","page_number":412,"box":{"x":116,"y":723,"width":750,"height":12}},{"id":"cfa1055a-f6f3-4742-9c0a-32ff808cf9c5","block_type":"box","text":"securities that are repurchased will bear the same interest rate and a similar maturity as those sold, but","page_number":412,"box":{"x":116,"y":738,"width":766,"height":12}},{"id":"a127a1bb-9411-4931-ac4a-a2f58a088a45","block_type":"box","text":"pools of mortgages collateralizing those securities may have different prepayment histories than those","page_number":412,"box":{"x":117,"y":754,"width":757,"height":12}},{"id":"525e5451-98c8-45fa-a605-eaa3700a8bf2","block_type":"box","text":"sold. During the period between the sale and repurchase, a Fund will not be entitled to receive interest","page_number":412,"box":{"x":116,"y":769,"width":760,"height":12}},{"id":"3d7f4b33-ba07-44fd-8758-09c4c565d492","block_type":"box","text":"and principal payments on the securities sold. Proceeds of the sale will be invested in additional","page_number":412,"box":{"x":116,"y":785,"width":710,"height":12}},{"id":"19e8f1f7-4a63-4012-8ddd-39949ef2855e","block_type":"box","text":"instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":412,"box":{"x":117,"y":800,"width":757,"height":12}},{"id":"dba33093-e52d-40d5-aea8-035db6d1d6be","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been","page_number":412,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"ce6eaf81-5139-4507-8bc5-d3517ebe4d84","block_type":"box","text":"realized on the securities sold as part of the dollar roll, the use of this technique will diminish the","page_number":412,"box":{"x":117,"y":831,"width":715,"height":12}},{"id":"f6131efa-8bd0-4d35-a8ce-3d2b1690757b","block_type":"box","text":"investment performance of a Fund compared with what the performance would have been without the","page_number":412,"box":{"x":117,"y":847,"width":759,"height":12}},{"id":"c7c9c598-3c92-4778-91c7-c591d3e48a30","block_type":"box","text":"use of dollar rolls.","page_number":412,"box":{"x":117,"y":862,"width":135,"height":10}},{"id":"c52313dd-26d4-4831-8693-465ee80c44a3","block_type":"box","text":"II-73","page_number":412,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"d50a5584-b38b-46e8-8a95-51a8377e9d23","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":412,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d5e3d462-56be-4712-9ca7-bb58b87ca231","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and","page_number":413,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"5213f87b-2c7e-45e1-864f-7432101ea5e4","block_type":"box","text":"a subsequent purchase or sale of a substantially similar security in the forward market. Transactions in","page_number":413,"box":{"x":116,"y":102,"width":767,"height":13}},{"id":"6273d5e7-cf6b-4647-96c9-7376cc7e2737","block_type":"box","text":"mortgage dollar rolls may increase trading costs and portfolio turnover.","page_number":413,"box":{"x":117,"y":118,"width":529,"height":12}},{"id":"2ff525fb-992a-40bd-92ea-de2ebf114e3d","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes","page_number":413,"box":{"x":117,"y":150,"width":738,"height":12}},{"id":"961cb112-a46b-445d-ba9c-1f51128e5538","block_type":"box","text":"insolvent, a Fund’s use of the proceeds of the current sale portion of the transaction may be restricted","page_number":413,"box":{"x":117,"y":166,"width":760,"height":12}},{"id":"c734e7a3-bc80-44fe-b34c-c687b7d27792","block_type":"box","text":"pending a determination by the other party, or its trustee or receiver, whether to enforce the Fund’s","page_number":413,"box":{"x":117,"y":181,"width":738,"height":12}},{"id":"35f8318f-45e8-444a-85ba-f3f32be9278b","block_type":"box","text":"obligation to purchase the similar securities in the forward transaction.","page_number":413,"box":{"x":116,"y":197,"width":525,"height":12}},{"id":"bead0b66-3682-4066-9075-185cfa39eee1","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar","page_number":413,"box":{"x":116,"y":229,"width":750,"height":12}},{"id":"f976fac0-1e54-45ac-89e9-168ccfd90484","block_type":"box","text":"rolls may depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar","page_number":413,"box":{"x":117,"y":245,"width":765,"height":12}},{"id":"a4a1774f-322e-4c47-a9ee-cbd0a29728ee","block_type":"box","text":"rolls involve the risk that the market value of the securities subject to a Fund’s forward purchase","page_number":413,"box":{"x":117,"y":260,"width":716,"height":12}},{"id":"28feaccf-ed4d-41cb-8355-da42f047a254","block_type":"box","text":"commitment may decline below, or the market value of the securities subject to a Fund’s forward sale","page_number":413,"box":{"x":116,"y":276,"width":758,"height":12}},{"id":"8bdc60bd-0d25-41db-b9c1-9f5d932a121c","block_type":"box","text":"commitment may increase above, the exercise price of the forward commitment. Dollar rolls are","page_number":413,"box":{"x":116,"y":291,"width":715,"height":12}},{"id":"0ef77e3f-5321-49a6-a171-204a95defd79","block_type":"box","text":"speculative techniques that can be deemed to involve leverage. There is no assurance that dollar rolls","page_number":413,"box":{"x":116,"y":307,"width":763,"height":12}},{"id":"92803a02-f9e4-4ee6-915b-ce315f036937","block_type":"box","text":"can be successfully employed.","page_number":413,"box":{"x":116,"y":322,"width":233,"height":12}},{"id":"12e1d5b2-589f-4b94-bfe4-599b4f42cdb8","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":413,"box":{"x":117,"y":355,"width":740,"height":12}},{"id":"a87aa36e-c2c3-4572-afbf-5145ac45a3d1","block_type":"box","text":"settling securities (e.g., dollar rolls and firm and standby commitments, including TBA commitments)","page_number":413,"box":{"x":116,"y":370,"width":748,"height":12}},{"id":"df58fb75-e653-45d0-bf81-eb8b2d3b539a","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":413,"box":{"x":116,"y":386,"width":750,"height":12}},{"id":"77c7744f-c544-4074-b0a9-bf494021a05d","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the transaction meets the","page_number":413,"box":{"x":116,"y":401,"width":718,"height":12}},{"id":"76fc2ef7-1a8a-4f82-90d9-e609e1fb35bd","block_type":"box","text":"Delayed-Settlement Securities Provision (as defined below under “— When-Issued Securities, Delayed","page_number":413,"box":{"x":117,"y":417,"width":768,"height":12}},{"id":"d95641c0-9b28-4b85-97ed-c6b2a5964f9d","block_type":"box","text":"Delivery Securities and Forward Commitments”). If a when-issued, forward-settling or non-standard","page_number":413,"box":{"x":117,"y":432,"width":742,"height":12}},{"id":"271742d0-237f-4be2-bdd0-326ec452ddc5","block_type":"box","text":"settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then it is treated","page_number":413,"box":{"x":116,"y":448,"width":772,"height":12}},{"id":"59475824-3fd8-44d5-9bc2-9e6265ee57c5","block_type":"box","text":"as a Derivatives Transaction under Rule 18f-4. See “— Derivatives — Regulation of Derivatives —","page_number":413,"box":{"x":116,"y":463,"width":736,"height":12}},{"id":"8a8bb707-0b29-4279-9907-6c571a6d49fa","block_type":"box","text":"Rule 18f-4 under the Investment Company Act” above.","page_number":413,"box":{"x":117,"y":479,"width":411,"height":12}},{"id":"16ac1417-33c6-40de-ad78-f6b9f246f54c","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":413,"box":{"x":117,"y":511,"width":270,"height":12}},{"id":"faf236af-2780-45a0-928d-ec6415badb89","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities.","page_number":413,"box":{"x":389,"y":511,"width":449,"height":12}},{"id":"332609aa-4107-4743-8df0-1e193ea70eba","block_type":"box","text":"These securities are derivative interest-only mortgage securities structured off home equity loan","page_number":413,"box":{"x":116,"y":527,"width":717,"height":12}},{"id":"b4aac99e-c234-4f50-afce-b6f39ba4c299","block_type":"box","text":"transactions. NIM securities receive any “excess” interest computed after paying coupon costs,","page_number":413,"box":{"x":116,"y":542,"width":710,"height":12}},{"id":"3137399b-2b33-4722-ab4a-bce64a4d8bcf","block_type":"box","text":"servicing costs and fees and any credit losses associated with the underlying pool of home equity","page_number":413,"box":{"x":116,"y":558,"width":728,"height":12}},{"id":"fb25a592-4ea9-4fa8-82dc-effbbe3fd24f","block_type":"box","text":"loans. Like traditional stripped mortgage-backed securities, the yield to maturity on a NIM security is","page_number":413,"box":{"x":117,"y":573,"width":745,"height":12}},{"id":"95f07119-3e5a-44b7-898f-202e425b2827","block_type":"box","text":"sensitive not only to changes in prevailing interest rates but also to the rate of principal payments","page_number":413,"box":{"x":116,"y":589,"width":725,"height":12}},{"id":"d23ff7c4-0c88-479e-ae8f-b5a51c2c1402","block_type":"box","text":"(including prepayments) on the underlying home equity loans. NIM securities are highly sensitive to","page_number":413,"box":{"x":117,"y":604,"width":740,"height":12}},{"id":"2c786e94-1867-4cf6-a4c3-c728b5d68a7f","block_type":"box","text":"credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":413,"box":{"x":116,"y":620,"width":657,"height":12}},{"id":"57b92383-72fd-4377-bcfe-8de2df5c6490","block_type":"box","text":"Municipal Investments.","page_number":413,"box":{"x":116,"y":652,"width":177,"height":12}},{"id":"f6068ea8-aac4-42b1-9f0e-417c2be36df0","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of","page_number":413,"box":{"x":117,"y":676,"width":759,"height":12}},{"id":"5be76a3e-4450-4c53-92d8-8a3e4fae0d69","block_type":"box","text":"the United States and the District of Columbia and their political subdivisions, agencies and","page_number":413,"box":{"x":116,"y":691,"width":676,"height":12}},{"id":"2cd7389f-ea24-4906-b1dd-9a08d3870f0d","block_type":"box","text":"instrumentalities, the payments from which, in the opinion of bond counsel to the issuer, are excludable","page_number":413,"box":{"x":117,"y":707,"width":765,"height":12}},{"id":"358a3e52-e77f-4341-9f5d-a817d6f83630","block_type":"box","text":"from gross income for U.S. federal income tax purposes (“Municipal Bonds”). Certain of the Municipal","page_number":413,"box":{"x":116,"y":722,"width":752,"height":12}},{"id":"b752dc13-b7a6-41e5-a18d-76ebdda0b8ae","block_type":"box","text":"Funds may also invest in Municipal Bonds that pay interest excludable from gross income for purposes","page_number":413,"box":{"x":117,"y":738,"width":762,"height":12}},{"id":"f7d7fcd1-4556-4e3e-a806-b12750b97732","block_type":"box","text":"of state and local income taxes of the designated state and/or allow the value of a Fund’s shares to be","page_number":413,"box":{"x":116,"y":753,"width":759,"height":12}},{"id":"285c18f7-273b-4613-a88d-c18eeab53313","block_type":"box","text":"exempt from state and local taxes of the designated state (“State Municipal Bonds”). The Municipal","page_number":413,"box":{"x":116,"y":769,"width":734,"height":12}},{"id":"1b6322ca-7d21-4318-a0f8-10a254251570","block_type":"box","text":"Funds may also invest in securities not issued by or on behalf of a state or territory or by an agency or","page_number":413,"box":{"x":117,"y":784,"width":757,"height":12}},{"id":"668efb19-09f9-460a-be30-160e8223648a","block_type":"box","text":"instrumentality thereof, if the Manager believes such securities to pay interest excludable from gross","page_number":413,"box":{"x":117,"y":800,"width":743,"height":12}},{"id":"32abd586-86fd-494e-b0c5-6e4a4e420ccf","block_type":"box","text":"income for purposes of U.S. federal income tax and state and local income taxes of the designated","page_number":413,"box":{"x":117,"y":815,"width":732,"height":12}},{"id":"50b3725c-446e-439b-83ab-51a440d2c90c","block_type":"box","text":"state and/or state and local personal property taxes of the designated state (“Non-Municipal","page_number":413,"box":{"x":116,"y":831,"width":686,"height":12}},{"id":"bf176c3c-1fcc-4a8a-857d-548b62417f43","block_type":"box","text":"Tax-Exempt Securities”). Non-Municipal Tax-Exempt Securities could include trust certificates or other","page_number":413,"box":{"x":116,"y":846,"width":764,"height":12}},{"id":"d85991df-e904-4870-b99b-9fa6f2584e26","block_type":"box","text":"instruments evidencing interest in one or more long-term municipal securities. Non-Municipal","page_number":413,"box":{"x":117,"y":862,"width":693,"height":12}},{"id":"2871af19-689d-4798-a16d-52d83421f6f1","block_type":"box","text":"Tax-Exempt Securities also may include securities issued by other investment companies that invest in","page_number":413,"box":{"x":116,"y":877,"width":770,"height":12}},{"id":"08bd407a-cde8-44d4-ac28-11d66a7ecd08","block_type":"box","text":"II-74","page_number":413,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"fb32f738-df87-4011-aa42-9fbbf90d412d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":413,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9407ea02-6e88-4c19-8479-986b8dd09d0c","block_type":"box","text":"municipal bonds, to the extent such investments are permitted by applicable law. Non-Municipal","page_number":414,"box":{"x":117,"y":87,"width":715,"height":12}},{"id":"194f3240-cc4a-4d15-a7e8-c839bf70d11d","block_type":"box","text":"Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":414,"box":{"x":116,"y":102,"width":731,"height":13}},{"id":"85f192dd-06e5-4534-bfa5-ed6ff7a74a01","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective","page_number":414,"box":{"x":117,"y":118,"width":769,"height":12}},{"id":"3c61334b-865c-4c7c-9df1-174d55b425e0","block_type":"box","text":"and policies. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for","page_number":414,"box":{"x":116,"y":134,"width":761,"height":12}},{"id":"729ee67b-2063-4f05-adfb-8932ce6dc0a9","block_type":"box","text":"purposes of U.S. federal income tax and state and local income taxes of a designated state and/or","page_number":414,"box":{"x":117,"y":149,"width":734,"height":12}},{"id":"0e2cd9df-70a0-48b9-bace-b7da700da867","block_type":"box","text":"allow the value of a Fund’s shares to be exempt from state and local personal property taxes of that","page_number":414,"box":{"x":116,"y":165,"width":745,"height":12}},{"id":"257d3877-0c7a-44c3-8094-b60147ed27a8","block_type":"box","text":"state will be considered “State Municipal Bonds” for purposes of the investment objective and policies","page_number":414,"box":{"x":116,"y":180,"width":758,"height":12}},{"id":"b34ef286-52e2-49f8-8575-c927dc2e0774","block_type":"box","text":"of each of California Municipal Opportunities Fund, New Jersey Municipal Bond Fund, New York","page_number":414,"box":{"x":116,"y":196,"width":720,"height":12}},{"id":"db6cb63a-e25e-4927-92a5-8dfa71917612","block_type":"box","text":"Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":414,"box":{"x":117,"y":211,"width":527,"height":12}},{"id":"2b585cd8-444e-4c2d-9d1a-da5610c275b7","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":414,"box":{"x":116,"y":244,"width":519,"height":12}},{"id":"7bd0e96b-297e-47a4-836c-d749707e8443","block_type":"box","text":"The risks and special","page_number":414,"box":{"x":636,"y":244,"width":168,"height":12}},{"id":"0b1ed7d5-4eaf-43d7-aab4-982fb5518eb8","block_type":"box","text":"considerations involved in investment in Municipal Bonds vary with the types of instruments being","page_number":414,"box":{"x":116,"y":259,"width":729,"height":12}},{"id":"4a6c31b8-7d27-4ad1-abaa-37d1c2ee1cb2","block_type":"box","text":"acquired. Investments in Non-Municipal Tax-Exempt Securities may present similar risks, depending","page_number":414,"box":{"x":116,"y":275,"width":751,"height":12}},{"id":"2177d428-a625-4b55-a370-8281cf5f76c2","block_type":"box","text":"on the particular product. Certain municipal instruments in which a Fund may invest may be","page_number":414,"box":{"x":116,"y":290,"width":685,"height":12}},{"id":"63615fcd-ff6a-4acb-8180-900408ad4b63","block_type":"box","text":"characterized as derivatives.","page_number":414,"box":{"x":116,"y":306,"width":218,"height":9}},{"id":"0d0ac0b9-b598-4e4d-8bbc-3598e468032c","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a","page_number":414,"box":{"x":116,"y":338,"width":768,"height":13}},{"id":"fc0d181d-9777-4678-857f-00b561c765f4","block_type":"box","text":"result of legislation or litigation, including legislation or litigation that changes the taxation of Municipal","page_number":414,"box":{"x":117,"y":354,"width":757,"height":12}},{"id":"a0923d60-67f0-4687-8681-ea2fc40ad63e","block_type":"box","text":"Bonds or the rights of Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are","page_number":414,"box":{"x":117,"y":369,"width":764,"height":13}},{"id":"9d519192-150f-44c5-9c51-a80f0f1e278c","block_type":"box","text":"rare and certain provisions of the U.S. Bankruptcy Code governing such bankruptcies are unclear.","page_number":414,"box":{"x":117,"y":385,"width":732,"height":12}},{"id":"2b9e151e-9a96-4a32-b2e6-e6af982261f2","block_type":"box","text":"Further, the application of state law to Municipal Bond issuers could produce varying results among the","page_number":414,"box":{"x":117,"y":400,"width":770,"height":13}},{"id":"47e72231-32d5-4b84-9c25-c8f40292e0e7","block_type":"box","text":"states or among Municipal Bond issuers within a state. These uncertainties could have a significant","page_number":414,"box":{"x":116,"y":416,"width":742,"height":12}},{"id":"0712a4fb-5f01-46da-a928-131c48405c19","block_type":"box","text":"impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":414,"box":{"x":117,"y":431,"width":513,"height":12}},{"id":"ed927662-f3f7-4558-882d-9ecf95da97b0","block_type":"box","text":"Description of Municipal Bonds.","page_number":414,"box":{"x":116,"y":464,"width":240,"height":12}},{"id":"1f86b9f3-5fb9-455c-8a3b-94b6c85df8ba","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including","page_number":414,"box":{"x":117,"y":488,"width":757,"height":12}},{"id":"b88c7b13-b12f-447e-805b-83ef794f56f8","block_type":"box","text":"the construction of a wide range of public facilities, refunding of outstanding obligations and obtaining","page_number":414,"box":{"x":116,"y":504,"width":756,"height":12}},{"id":"115d4af8-342c-4864-adf3-7dc9293f23dd","block_type":"box","text":"funds for general operating expenses and loans to other public institutions and facilities. In addition,","page_number":414,"box":{"x":116,"y":519,"width":744,"height":12}},{"id":"9af9c6d4-cd57-4f09-988d-656c2f01669e","block_type":"box","text":"certain types of bonds are issued by or on behalf of public authorities to finance various privately","page_number":414,"box":{"x":116,"y":535,"width":721,"height":12}},{"id":"98a25cb8-1afb-418c-bbc6-583af73a8323","block_type":"box","text":"owned or operated facilities, including certain facilities for the local furnishing of electric energy or gas,","page_number":414,"box":{"x":116,"y":550,"width":763,"height":12}},{"id":"46dbccf8-a416-4f30-8a60-26b3d70b935f","block_type":"box","text":"sewage facilities, solid waste disposal facilities and other specialized facilities. Such obligations are","page_number":414,"box":{"x":116,"y":566,"width":740,"height":12}},{"id":"2e93ffc2-598d-4af2-b9aa-ca3f1cd826d6","block_type":"box","text":"included within the term Municipal Bonds if the interest paid thereon is excluded from gross income for","page_number":414,"box":{"x":117,"y":581,"width":764,"height":12}},{"id":"10b4e0f9-d727-4fde-a430-2f05a28cf894","block_type":"box","text":"U.S. federal income tax purposes and any applicable state and local taxes. Other types of private","page_number":414,"box":{"x":117,"y":597,"width":726,"height":12}},{"id":"250b3cd3-4005-4220-bd88-82009717afc7","block_type":"box","text":"activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":414,"box":{"x":116,"y":612,"width":726,"height":12}},{"id":"8b350465-f180-4a22-acd1-b96a3ebc816b","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the","page_number":414,"box":{"x":117,"y":628,"width":732,"height":12}},{"id":"e6718f1a-5b75-41fc-8486-c466203b669a","block_type":"box","text":"current U.S. federal tax laws place substantial limitations on the size of such issues. The interest on","page_number":414,"box":{"x":116,"y":643,"width":745,"height":12}},{"id":"39ccf04a-ba82-42fa-ac8e-d496fc53b7c9","block_type":"box","text":"Municipal Bonds may bear a fixed rate or be payable at a variable or floating rate. The two principal","page_number":414,"box":{"x":117,"y":659,"width":742,"height":12}},{"id":"834df942-aa32-4dbc-a747-9c2f246a051d","block_type":"box","text":"classifications of Municipal Bonds are “general obligation” and “revenue” or “special obligation” bonds,","page_number":414,"box":{"x":116,"y":674,"width":756,"height":12}},{"id":"8eb502bd-b2a4-4b12-aee6-bbd0780b4ba2","block_type":"box","text":"which latter category includes private activity bonds (“PABs”) (or “industrial development bonds” under","page_number":414,"box":{"x":116,"y":690,"width":760,"height":12}},{"id":"52c3799a-f09f-4099-846e-f123dbbf3326","block_type":"box","text":"pre-1986 law).","page_number":414,"box":{"x":117,"y":705,"width":105,"height":12}},{"id":"74dc9775-4c48-4b32-8a52-ba2ea220d30a","block_type":"box","text":"General Obligation Bonds.","page_number":414,"box":{"x":117,"y":738,"width":194,"height":12}},{"id":"552a53cc-6cf4-447e-a3ce-99356b5edbd1","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith,","page_number":414,"box":{"x":319,"y":738,"width":553,"height":12}},{"id":"db8c6af7-4fa9-4e78-b5cb-716b04bff4b9","block_type":"box","text":"credit and taxing power for the payment of principal and interest. The taxing power of any","page_number":414,"box":{"x":116,"y":753,"width":663,"height":13}},{"id":"1e210c36-a20b-4d13-bf52-1b94f40fdadb","block_type":"box","text":"governmental entity may be limited, however, by provisions of its state constitution or laws, and an","page_number":414,"box":{"x":116,"y":769,"width":729,"height":12}},{"id":"d06343ce-45b1-4766-8d25-79115b9b2e23","block_type":"box","text":"entity’s creditworthiness will depend on many factors, including potential erosion of its tax base due to","page_number":414,"box":{"x":116,"y":784,"width":755,"height":13}},{"id":"6c76e410-73dc-4115-ac9c-63f765c3a772","block_type":"box","text":"population declines, natural disasters, declines in the state’s industrial base or inability to attract new","page_number":414,"box":{"x":117,"y":800,"width":745,"height":12}},{"id":"fc3c2196-f90b-46bd-a745-4498e3db1ad2","block_type":"box","text":"industries, economic limits on the ability to tax without eroding the tax base, state legislative proposals","page_number":414,"box":{"x":117,"y":816,"width":757,"height":12}},{"id":"e379f6dc-3121-4e7d-89de-f93a6075bf69","block_type":"box","text":"or voter initiatives to limit ad valorem real property taxes and the extent to which the entity relies on","page_number":414,"box":{"x":116,"y":831,"width":740,"height":12}},{"id":"0da94abe-cc48-4d0d-9f32-e2b6c9f3543c","block_type":"box","text":"federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":414,"box":{"x":116,"y":846,"width":738,"height":13}},{"id":"bb9bc849-7be8-4e88-8eff-b886a9f4dd6a","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest","page_number":414,"box":{"x":116,"y":862,"width":765,"height":12}},{"id":"449463e6-6ea3-4b44-b8d4-303266b40ad0","block_type":"box","text":"and the repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":414,"box":{"x":116,"y":877,"width":717,"height":13}},{"id":"6d289437-8fd1-4d61-8e9b-42236d57adcc","block_type":"box","text":"II-75","page_number":414,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"4be58174-5ade-49cb-bb83-ed1ad2ce012e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":414,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"af7e811a-903c-40a3-9686-c32482a83ca5","block_type":"box","text":"Revenue Bonds.","page_number":415,"box":{"x":116,"y":87,"width":122,"height":10}},{"id":"6ba3a727-e789-4575-b2f7-5e32708f46a0","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility","page_number":415,"box":{"x":240,"y":87,"width":634,"height":12}},{"id":"9a4a2e4c-c06f-4e2f-a165-e49207902c48","block_type":"box","text":"or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific","page_number":415,"box":{"x":116,"y":102,"width":720,"height":12}},{"id":"2e2883fb-1de9-4564-8d96-8c7402bb42b8","block_type":"box","text":"revenue source such as payments from the user of the facility being financed; accordingly, the timely","page_number":415,"box":{"x":117,"y":118,"width":752,"height":12}},{"id":"815d6042-fbab-45e9-badf-fa3ce7740799","block_type":"box","text":"payment of interest and the repayment of principal in accordance with the terms of the revenue or","page_number":415,"box":{"x":117,"y":134,"width":729,"height":12}},{"id":"b62fa991-9c6a-4553-b299-2934a9c1a4a3","block_type":"box","text":"special obligation bond is a function of the economic viability of such facility or such revenue source.","page_number":415,"box":{"x":116,"y":149,"width":749,"height":12}},{"id":"7d0bf283-c6f9-4e67-b250-f281fbf193f9","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi","page_number":415,"box":{"x":117,"y":180,"width":730,"height":12}},{"id":"1d09b345-baf7-4bd6-a5a7-78f76c705ca7","block_type":"box","text":"family housing involve special risks in addition to those associated with municipal bonds generally,","page_number":415,"box":{"x":116,"y":196,"width":735,"height":12}},{"id":"fcbcc853-8778-4642-bad2-605d6319118a","block_type":"box","text":"including that the underlying properties may not generate sufficient income to pay expenses and","page_number":415,"box":{"x":117,"y":211,"width":718,"height":12}},{"id":"15adf12a-98be-460c-b2fc-eee59b0ff5af","block_type":"box","text":"interest costs. Such bonds are generally non-recourse against the property owner, may be junior to the","page_number":415,"box":{"x":117,"y":227,"width":768,"height":12}},{"id":"14266c84-ec7a-414a-a03a-6983502fb6fd","block_type":"box","text":"rights of others with an interest in the properties, may pay interest that changes based in part on the","page_number":415,"box":{"x":117,"y":242,"width":746,"height":12}},{"id":"e2318db6-981a-46eb-9144-e524febc8086","block_type":"box","text":"financial performance of the property, may be prepayable without penalty and may be used to finance","page_number":415,"box":{"x":116,"y":258,"width":760,"height":12}},{"id":"2bc0ac7e-0603-466a-8eac-42f747d61fd2","block_type":"box","text":"the construction of housing developments which, until completed and rented, do not generate income","page_number":415,"box":{"x":116,"y":273,"width":757,"height":12}},{"id":"b1faeddd-4b2b-48eb-aa1e-af92d78e5a24","block_type":"box","text":"to pay interest. Increases in interest rates payable on senior obligations may make it more difficult for","page_number":415,"box":{"x":116,"y":289,"width":755,"height":12}},{"id":"d0809dae-fc24-43c9-9213-78103d895a0d","block_type":"box","text":"issuers to meet payment obligations on subordinated bonds.","page_number":415,"box":{"x":117,"y":304,"width":452,"height":12}},{"id":"b230e8e4-6d58-488f-9ccc-391f35f7e2f1","block_type":"box","text":"PABs.","page_number":415,"box":{"x":116,"y":335,"width":45,"height":10}},{"id":"8a4aa81f-6b86-4db3-a81a-a84434a395e8","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public","page_number":415,"box":{"x":162,"y":335,"width":666,"height":12}},{"id":"7c3213a7-8284-468e-a82d-0fa774a594f2","block_type":"box","text":"authorities to provide funds, usually through a loan or lease arrangement, to a private entity for the","page_number":415,"box":{"x":116,"y":351,"width":735,"height":12}},{"id":"24253c50-cb13-41df-aea0-3ee2ac412355","block_type":"box","text":"purpose of financing construction or improvement of a facility to be used by the entity. Such bonds are","page_number":415,"box":{"x":117,"y":366,"width":762,"height":12}},{"id":"06bb3429-3218-4e21-b9e2-03acad08da05","block_type":"box","text":"secured primarily by revenues derived from loan repayments or lease payments due from the entity,","page_number":415,"box":{"x":116,"y":382,"width":747,"height":12}},{"id":"3841ee72-a750-43d7-8e87-20f4d4396848","block_type":"box","text":"which may or may not be guaranteed by a parent company or otherwise secured. PABs generally are","page_number":415,"box":{"x":116,"y":397,"width":758,"height":12}},{"id":"75c939e9-53f4-4a4d-842d-0b91a672725d","block_type":"box","text":"not secured by a pledge of the taxing power of the issuer of such bonds. Therefore, an investor should","page_number":415,"box":{"x":117,"y":413,"width":764,"height":12}},{"id":"d29315fc-1902-4900-ba18-255ddf05fb64","block_type":"box","text":"understand that repayment of such bonds generally depends on the revenues of a private entity and be","page_number":415,"box":{"x":117,"y":428,"width":771,"height":12}},{"id":"78c3f31c-d2bc-4880-8a54-2bfecba707c7","block_type":"box","text":"aware of the risks that such an investment may entail. The continued ability of an entity to generate","page_number":415,"box":{"x":116,"y":444,"width":741,"height":12}},{"id":"a996e993-6516-4747-a1c1-f027300df9a2","block_type":"box","text":"sufficient revenues for the payment of principal and interest on such bonds will be affected by many","page_number":415,"box":{"x":116,"y":459,"width":744,"height":12}},{"id":"ced97887-7309-429d-becc-8b72e04af74d","block_type":"box","text":"factors including the size of the entity, its capital structure, demand for its products or services,","page_number":415,"box":{"x":116,"y":475,"width":707,"height":12}},{"id":"fd772c86-cbe9-4e1b-816f-12b03faeb48b","block_type":"box","text":"competition, general economic conditions, government regulation and the entity’s dependence on","page_number":415,"box":{"x":116,"y":490,"width":728,"height":12}},{"id":"08536daa-0670-4f22-b709-ae53cc6d56c9","block_type":"box","text":"revenues for the operation of the particular facility being financed.","page_number":415,"box":{"x":117,"y":506,"width":491,"height":12}},{"id":"14936bf9-9a54-4c81-8151-13bc7ce68a8b","block_type":"box","text":"Moral Obligation Bonds.","page_number":415,"box":{"x":116,"y":537,"width":178,"height":12}},{"id":"66ca45e9-1932-4c35-ae3b-bb0eb3e131e8","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public","page_number":415,"box":{"x":295,"y":537,"width":534,"height":12}},{"id":"ad296a2f-0aa3-4c80-b9ee-1fb14936f892","block_type":"box","text":"authorities. If an issuer of moral obligation bonds is unable to meet its obligations, the repayment of","page_number":415,"box":{"x":116,"y":552,"width":742,"height":12}},{"id":"7e60a784-e330-4785-847e-9aa331ef35c8","block_type":"box","text":"such bonds becomes a moral commitment but not a legal obligation of the state or municipality that","page_number":415,"box":{"x":116,"y":568,"width":741,"height":12}},{"id":"1609d37d-bb47-49f5-8ad6-912d1ef0a9d7","block_type":"box","text":"created the special purpose public authority that issued the bonds.","page_number":415,"box":{"x":116,"y":583,"width":498,"height":12}},{"id":"4338432f-f65e-4bb0-b13e-ca8b38867d5a","block_type":"box","text":"Municipal Notes.","page_number":415,"box":{"x":116,"y":614,"width":122,"height":12}},{"id":"62dc4038-42c9-4990-92a6-8b9225de8ee6","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim","page_number":415,"box":{"x":240,"y":614,"width":647,"height":12}},{"id":"1f25bd6b-46de-4de7-a77e-73de99725fef","block_type":"box","text":"financing in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the","page_number":415,"box":{"x":116,"y":630,"width":742,"height":12}},{"id":"1a814ae5-cf1b-484c-bd6f-ad7f8f46a785","block_type":"box","text":"anticipated proceeds, repayment on the note may be delayed or the note may not be fully repaid, and a","page_number":415,"box":{"x":116,"y":645,"width":772,"height":12}},{"id":"6f32a645-ce3f-4324-a94b-4c6a2ffa29e3","block_type":"box","text":"Fund may lose money.","page_number":415,"box":{"x":117,"y":661,"width":167,"height":12}},{"id":"485b83bb-69f5-413a-b368-7bf867b2912a","block_type":"box","text":"Municipal Commercial Paper.","page_number":415,"box":{"x":116,"y":692,"width":218,"height":12}},{"id":"70170928-b2cb-4145-abf7-d913820e982a","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet","page_number":415,"box":{"x":341,"y":692,"width":528,"height":12}},{"id":"66fb4e7d-62f6-4367-9b8b-759d42515073","block_type":"box","text":"short-term financing needs. The lack of security presents some risk of loss to a Fund since, in the","page_number":415,"box":{"x":116,"y":707,"width":723,"height":12}},{"id":"eda13ed2-8ec6-46f8-b68e-fbd715ae48c6","block_type":"box","text":"event of an issuer’s bankruptcy, unsecured creditors are repaid only after the secured creditors out of","page_number":415,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"a5e7a4f4-44ff-4fbf-8730-dcdcbcffdc71","block_type":"box","text":"the assets, if any, that remain.","page_number":415,"box":{"x":116,"y":738,"width":223,"height":12}},{"id":"7eabccb5-6ba6-4a90-b07c-dd376fdca49a","block_type":"box","text":"Municipal Lease Obligations.","page_number":415,"box":{"x":116,"y":769,"width":213,"height":12}},{"id":"fb1ddff5-ea6f-499b-8beb-e83cfec1137c","block_type":"box","text":"Also included within the general category of Municipal Bonds are","page_number":415,"box":{"x":335,"y":769,"width":481,"height":12}},{"id":"ed9f550b-f40f-41bc-8970-30deb0ca419b","block_type":"box","text":"certificates of participation (“COPs”) issued by government authorities or entities to finance the","page_number":415,"box":{"x":116,"y":785,"width":701,"height":12}},{"id":"b85e2346-1d20-4eed-b7df-8a7ce7c12a9b","block_type":"box","text":"acquisition or construction of equipment, land and/or facilities. The COPs represent participations in a","page_number":415,"box":{"x":116,"y":800,"width":753,"height":12}},{"id":"0c5ce28e-2dba-4dd6-ab98-74a0a5097452","block_type":"box","text":"lease, an installment purchase contract or a conditional sales contract (hereinafter collectively called","page_number":415,"box":{"x":117,"y":816,"width":742,"height":12}},{"id":"645752c4-7ec4-4cb3-8f10-098811ff83d5","block_type":"box","text":"“lease obligations”) relating to such equipment, land or facilities. Municipal leases, like other municipal","page_number":415,"box":{"x":116,"y":831,"width":761,"height":12}},{"id":"15c8aa26-a163-4846-9964-f30f9a041c4f","block_type":"box","text":"debt obligations, are subject to the risk of non-payment. Although lease obligations do not constitute","page_number":415,"box":{"x":116,"y":847,"width":747,"height":12}},{"id":"7bfdf97b-9cb9-4d01-80ca-a475df129200","block_type":"box","text":"general obligations of the issuer for which the issuer’s unlimited taxing power is pledged, a lease","page_number":415,"box":{"x":116,"y":862,"width":721,"height":12}},{"id":"1d0f0ae7-d488-42ed-b6a9-a65a94c1e422","block_type":"box","text":"obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":415,"box":{"x":116,"y":878,"width":716,"height":12}},{"id":"6dfef203-203e-4db0-b42b-18277282f356","block_type":"box","text":"II-76","page_number":415,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"175c3bd5-57e7-4a7d-b061-edc4de303580","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":415,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0d7bbf73-6a03-4bd0-b9b7-dc77be0f0430","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain","page_number":416,"box":{"x":117,"y":87,"width":631,"height":12}},{"id":"451cec32-1107-4c67-aa0a-7408ba784b45","block_type":"box","text":"“non-appropriation” clauses, which provide that the issuer has no obligation to make lease or","page_number":416,"box":{"x":116,"y":102,"width":693,"height":13}},{"id":"cf0b7219-8328-4d51-ae05-83017ca1822a","block_type":"box","text":"installment purchase payments in future years unless money is appropriated for such purpose on a","page_number":416,"box":{"x":117,"y":118,"width":739,"height":12}},{"id":"b6627f92-80a9-4889-859f-2a481529949e","block_type":"box","text":"yearly basis. Although “non-appropriation” lease obligations are secured by the leased property,","page_number":416,"box":{"x":116,"y":134,"width":716,"height":12}},{"id":"bbf2a1d5-888d-4229-b26d-add90d641004","block_type":"box","text":"disposition of the property in the event of foreclosure might prove difficult. These securities represent a","page_number":416,"box":{"x":116,"y":149,"width":767,"height":12}},{"id":"f85d2558-3ff1-4e28-ac43-63045e9594dc","block_type":"box","text":"type of financing that has not yet developed the depth of marketability associated with more","page_number":416,"box":{"x":116,"y":165,"width":685,"height":12}},{"id":"036a2e21-5e63-4892-a470-e7e616144c14","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":416,"box":{"x":116,"y":180,"width":596,"height":12}},{"id":"7f24fbed-d077-4bcf-b1e3-61e46509cc79","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in","page_number":416,"box":{"x":116,"y":207,"width":769,"height":12}},{"id":"b645d036-fe73-45b4-b425-ae693e928457","block_type":"box","text":"general economic downturns and as relative governmental cost burdens are allocated and reallocated","page_number":416,"box":{"x":116,"y":223,"width":762,"height":12}},{"id":"5344c624-1060-417a-a7db-e0ed3d9dc35e","block_type":"box","text":"among federal, state and local governmental units. Such non-payment would result in a reduction of","page_number":416,"box":{"x":116,"y":238,"width":746,"height":12}},{"id":"e6238d1a-30a3-4370-abe3-5491b321d426","block_type":"box","text":"income to a Fund, and could result in a reduction in the value of the municipal lease experiencing","page_number":416,"box":{"x":117,"y":254,"width":726,"height":12}},{"id":"6fbc0643-21ab-4f65-8067-23619f6c8e69","block_type":"box","text":"non-payment and a potential decrease in the NAV of a Fund. Issuers of municipal securities might","page_number":416,"box":{"x":117,"y":269,"width":731,"height":12}},{"id":"00496e34-590c-410f-83ef-f1bf6c5b5de5","block_type":"box","text":"seek protection under the bankruptcy laws. In the event of bankruptcy of such an issuer, a Fund could","page_number":416,"box":{"x":116,"y":285,"width":762,"height":12}},{"id":"72452f12-4b12-4b6c-b78b-38384474dfd1","block_type":"box","text":"experience delays and limitations with respect to the collection of principal and interest on such","page_number":416,"box":{"x":116,"y":300,"width":711,"height":12}},{"id":"1c7474ec-5a1e-4518-b075-7b3e187e177b","block_type":"box","text":"municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest","page_number":416,"box":{"x":117,"y":316,"width":755,"height":12}},{"id":"0265cf27-fe17-47a0-a5e8-fd36dca74cce","block_type":"box","text":"to which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might","page_number":416,"box":{"x":116,"y":331,"width":740,"height":12}},{"id":"e7929bc1-4238-4c89-9904-d3ba4dbb72f0","block_type":"box","text":"take possession of and manage the assets securing the issuer’s obligations on such securities, which","page_number":416,"box":{"x":116,"y":347,"width":758,"height":12}},{"id":"808eee5c-0288-401c-bb0b-ec872710f5c3","block_type":"box","text":"may increase a Fund’s operating expenses and adversely affect the NAV of a Fund. When the lease","page_number":416,"box":{"x":117,"y":362,"width":749,"height":12}},{"id":"ee0f24c4-2538-46bd-8b29-e20e61fc1441","block_type":"box","text":"contains a non-appropriation clause, however, the failure to pay would not be a default and a Fund","page_number":416,"box":{"x":116,"y":378,"width":737,"height":12}},{"id":"05312488-662a-480e-bb93-310261052e6d","block_type":"box","text":"would not have the right to take possession of the assets. Any income derived from a Fund’s","page_number":416,"box":{"x":116,"y":393,"width":692,"height":12}},{"id":"9c16c5b8-adc3-4d6e-ab62-f9d1eb7be583","block_type":"box","text":"ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s intention to qualify","page_number":416,"box":{"x":116,"y":409,"width":765,"height":12}},{"id":"3f6028eb-cbe2-4a5a-9301-217492caa0e9","block_type":"box","text":"as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":416,"box":{"x":116,"y":424,"width":717,"height":12}},{"id":"47ca737a-4286-4ed0-b0fa-a1e6ffe45c12","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a","page_number":416,"box":{"x":116,"y":440,"width":765,"height":12}},{"id":"dcc62357-faa1-43b0-ae94-bbb5138b9480","block_type":"box","text":"Fund is subject to certain limitations on its investments and on the nature of its income.","page_number":416,"box":{"x":117,"y":455,"width":650,"height":12}},{"id":"722d9512-fa69-4a9a-9a77-49a2b8719641","block_type":"box","text":"Tender Option Bonds.","page_number":416,"box":{"x":118,"y":482,"width":161,"height":12}},{"id":"18e10d2a-cf4d-4a84-a9c1-2f95ddfc6830","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option","page_number":416,"box":{"x":280,"y":482,"width":596,"height":12}},{"id":"a34db58e-c5ca-4ad5-8e60-a82e546947f5","block_type":"box","text":"bonds (“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in","page_number":416,"box":{"x":117,"y":498,"width":736,"height":12}},{"id":"474ae5d2-c4f0-4a29-b97c-feac68ed575a","block_type":"box","text":"which the Funds will invest pay interest or income that, in the opinion of counsel to the issuer, is","page_number":416,"box":{"x":116,"y":513,"width":715,"height":12}},{"id":"617dbd60-a5f8-4e24-8c27-cb911481c890","block_type":"box","text":"exempt from regular U.S. federal income tax. BlackRock will not conduct its own analysis of the tax","page_number":416,"box":{"x":116,"y":529,"width":740,"height":12}},{"id":"15ed7f05-f69f-4dbb-b1db-89cf1e0d574c","block_type":"box","text":"status of the interest or income paid by TOB Residuals held by the Funds, but will rely on the opinion of","page_number":416,"box":{"x":116,"y":544,"width":772,"height":12}},{"id":"20a5531b-db68-4edf-b2fa-3f3ef63ea4ee","block_type":"box","text":"counsel to the issuer. Although volatile, TOB Residuals typically offer the potential for yields exceeding","page_number":416,"box":{"x":116,"y":560,"width":767,"height":12}},{"id":"ba5919f2-0a57-477b-bfff-531080398162","block_type":"box","text":"the yields available on fixed rate Municipal Bonds with comparable credit quality. The Funds may","page_number":416,"box":{"x":116,"y":575,"width":724,"height":12}},{"id":"99f86ec0-5556-40d2-9f05-f6fd0f1a912d","block_type":"box","text":"invest in TOB Residuals for the purpose of using economic leverage.","page_number":416,"box":{"x":117,"y":591,"width":515,"height":12}},{"id":"771438fc-8ca5-41da-a762-65c5c1fb7f06","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of","page_number":416,"box":{"x":116,"y":618,"width":723,"height":12}},{"id":"6b9747df-9b5d-4ebf-8ec0-3193b9bfe63b","block_type":"box","text":"holding Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically","page_number":416,"box":{"x":117,"y":634,"width":724,"height":12}},{"id":"f44a05a1-c17a-44a4-abb1-ba86f5a37145","block_type":"box","text":"issues two classes of beneficial interests: short-term floating rate interests (“TOB Floaters”), which are","page_number":416,"box":{"x":117,"y":649,"width":762,"height":12}},{"id":"0d11911a-b7da-47ff-b11f-188b3d821d49","block_type":"box","text":"sold to third-party investors, and TOB Residuals, which are generally issued to the fund(s) that","page_number":416,"box":{"x":116,"y":665,"width":701,"height":12}},{"id":"463b42dd-fb8d-43f8-82f0-b7e80daaa2a8","block_type":"box","text":"transferred Municipal Bonds to the TOB Trust. The Funds may invest in both TOB Floaters and TOB","page_number":416,"box":{"x":116,"y":680,"width":745,"height":12}},{"id":"e17e18ef-4644-4780-b3e1-69126e03a32b","block_type":"box","text":"Residuals. TOB Floaters may have first priority on the cash flow from the Municipal Bonds held by the","page_number":416,"box":{"x":117,"y":696,"width":754,"height":12}},{"id":"a53b0bfb-c65c-40a7-88c1-4eb0aa5d80be","block_type":"box","text":"TOB Trust and are enhanced with a liquidity support arrangement from a third-party Liquidity Provider","page_number":416,"box":{"x":116,"y":711,"width":755,"height":12}},{"id":"31fc6ac3-e985-4d7a-8e7a-26beb008fa5c","block_type":"box","text":"(defined below) which allows holders to tender their position at par (plus accrued interest). A Fund, as","page_number":416,"box":{"x":117,"y":727,"width":753,"height":12}},{"id":"e444008c-60ec-42b3-9058-e3b453f7ce44","block_type":"box","text":"a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes","page_number":416,"box":{"x":116,"y":742,"width":753,"height":12}},{"id":"c49e7866-8a79-4692-b3a5-52c6c3533ffe","block_type":"box","text":"the Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the","page_number":416,"box":{"x":116,"y":758,"width":752,"height":12}},{"id":"a0a84944-159a-4bb6-a808-0abbadb9bde7","block_type":"box","text":"TOB Floaters, less certain transaction costs, and typically will invest the cash to purchase additional","page_number":416,"box":{"x":116,"y":773,"width":741,"height":12}},{"id":"33fb062a-b25d-4a53-a015-125569671c9d","block_type":"box","text":"Municipal Bonds or other investments permitted by its investment policies. If a Fund ever purchases all","page_number":416,"box":{"x":117,"y":789,"width":761,"height":12}},{"id":"ec0f22be-edc6-43b1-b736-72cbbceac66e","block_type":"box","text":"or a portion of the TOB Floaters sold by the TOB Trust, it may surrender those TOB Floaters together","page_number":416,"box":{"x":116,"y":804,"width":754,"height":12}},{"id":"1c351ce7-9d09-4bd8-bceb-5f1944005736","block_type":"box","text":"with a proportionate amount of TOB Residuals to the TOB Trust in exchange for a proportionate","page_number":416,"box":{"x":116,"y":820,"width":711,"height":12}},{"id":"195c1de9-6e74-4099-90e8-71ad18960b81","block_type":"box","text":"amount of the Municipal Bonds owned by the TOB Trust.","page_number":416,"box":{"x":116,"y":835,"width":427,"height":12}},{"id":"f2b0bec6-27cd-437f-90bb-53396295d233","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has","page_number":416,"box":{"x":116,"y":862,"width":767,"height":12}},{"id":"1b6fe0e3-b9b5-409e-a4fe-5920fbf128db","block_type":"box","text":"contributed Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust,","page_number":416,"box":{"x":116,"y":878,"width":752,"height":12}},{"id":"60432a0e-8e4b-4052-b31a-359cd79add86","block_type":"box","text":"II-77","page_number":416,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"f4dafd21-b31e-4913-9691-4b31143f1666","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":416,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e8eed37f-ef15-449d-ab14-fdfcd0a25686","block_type":"box","text":"the economic rights and obligations under the TOB Residual will generally be shared among the funds","page_number":417,"box":{"x":116,"y":87,"width":764,"height":12}},{"id":"65e6fd54-d7c4-4146-aecd-4f547a10f240","block_type":"box","text":"ratably in proportion to their participation in the TOB Trust.","page_number":417,"box":{"x":117,"y":102,"width":437,"height":13}},{"id":"7bc2a58a-1181-4595-bd65-7b5fabe224dd","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain","page_number":417,"box":{"x":116,"y":134,"width":747,"height":12}},{"id":"06f1ad34-822f-4f2c-982d-7424ac100f4a","block_type":"box","text":"cases, when Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction","page_number":417,"box":{"x":116,"y":149,"width":764,"height":12}},{"id":"72c0cbaa-0999-4502-80ef-743a829dea5b","block_type":"box","text":"includes a credit enhancement feature that provides for the timely payment of principal and interest on","page_number":417,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"dac664da-42a6-41d9-842e-a4fec9b79702","block_type":"box","text":"the bonds to the TOB Trust by a credit enhancement provider. The TOB Trust would be responsible for","page_number":417,"box":{"x":116,"y":180,"width":770,"height":12}},{"id":"bc2965c9-d730-4580-8f65-8307ffa37522","block_type":"box","text":"the payment of the credit enhancement fee and a Fund, as a TOB Residual holder, would be","page_number":417,"box":{"x":116,"y":196,"width":693,"height":12}},{"id":"e0179f9c-5491-4d74-8464-c840c337993d","block_type":"box","text":"responsible for reimbursement of any payments of principal and interest made by the credit","page_number":417,"box":{"x":117,"y":211,"width":681,"height":12}},{"id":"46fe0e8c-e65a-4279-a2c6-17b89bb2b209","block_type":"box","text":"enhancement provider.","page_number":417,"box":{"x":116,"y":227,"width":176,"height":11}},{"id":"6fa2b056-cf96-47a6-abfa-6f7db85bc298","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a","page_number":417,"box":{"x":116,"y":258,"width":760,"height":12}},{"id":"1a023b79-adb7-45d7-925f-e96aae7f549a","block_type":"box","text":"proportional share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued","page_number":417,"box":{"x":117,"y":273,"width":722,"height":12}},{"id":"f803e97e-fda4-4571-8333-94c04e5561d5","block_type":"box","text":"interest. Thereafter, the Fund may withdraw a corresponding share of the Municipal Bonds from the","page_number":417,"box":{"x":117,"y":289,"width":743,"height":12}},{"id":"afa720de-4f67-44b3-a69f-bea2b9579226","block_type":"box","text":"TOB Trust. This transaction, in effect, creates exposure for the Fund to the entire return of the","page_number":417,"box":{"x":116,"y":304,"width":702,"height":12}},{"id":"8460b92d-c920-4297-9b9d-09e889d9df5d","block_type":"box","text":"Municipal Bonds in the TOB Trust, with a net cash investment by the Fund that is less than the value of","page_number":417,"box":{"x":117,"y":320,"width":770,"height":12}},{"id":"eea6309a-76b9-4e60-a1e2-bac721586242","block_type":"box","text":"the Municipal Bonds in the TOB Trust. This multiplies the positive or negative impact of the Municipal","page_number":417,"box":{"x":116,"y":335,"width":755,"height":12}},{"id":"18fb2e8f-dbbd-4c57-be20-29b498486b2e","block_type":"box","text":"Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust depends","page_number":417,"box":{"x":117,"y":351,"width":749,"height":12}},{"id":"792d72c5-2aed-4c13-881e-a40b97d1786a","block_type":"box","text":"on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB","page_number":417,"box":{"x":116,"y":366,"width":714,"height":12}},{"id":"1b15170c-ef73-47a1-9084-42a928cf5c4f","block_type":"box","text":"Floaters it issues.","page_number":417,"box":{"x":117,"y":382,"width":134,"height":9}},{"id":"e2755839-e24a-4254-a2a2-e55c8b890c2e","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly","page_number":417,"box":{"x":116,"y":413,"width":762,"height":12}},{"id":"b4560247-cf43-4eb9-90ab-b9ded80b9e13","block_type":"box","text":"leveraged if the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of","page_number":417,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"c710aa95-387b-4330-8180-b443f8358747","block_type":"box","text":"the principal amount of the Municipal Bonds owned by the TOB Trust.","page_number":417,"box":{"x":116,"y":444,"width":523,"height":12}},{"id":"983c7371-3f59-4fc5-b60a-cd3e85f1de52","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option","page_number":417,"box":{"x":116,"y":475,"width":757,"height":12}},{"id":"f3c93066-1c09-4be1-b36f-59bfbb0df8be","block_type":"box","text":"termination events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust","page_number":417,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"c5b1793f-b215-42c0-8e0c-fb6ab4d0c208","block_type":"box","text":"agreements. TOTEs include the bankruptcy or default of the issuer of the Municipal Bonds held in the","page_number":417,"box":{"x":116,"y":506,"width":758,"height":12}},{"id":"f16ae5c8-5af3-40aa-94d8-3f9abc8225ab","block_type":"box","text":"TOB Trust, a substantial downgrade in the credit quality of the issuer of the Municipal Bonds held in","page_number":417,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"79630e93-99e7-487a-ac09-d3a1013b4569","block_type":"box","text":"the TOB Trust, failure of any scheduled payment of principal or interest on the Municipal Bonds, and a","page_number":417,"box":{"x":116,"y":537,"width":763,"height":12}},{"id":"b5d3ae4c-e9c4-4fad-b2e2-f45ebf195380","block_type":"box","text":"judgment or ruling that interest on the Municipal Bonds is subject to U.S. federal income taxation.","page_number":417,"box":{"x":115,"y":552,"width":727,"height":12}},{"id":"861e1993-f318-4cff-9f8f-6743b5483506","block_type":"box","text":"MTEs may include, among other things, a failed remarketing of the TOB Floaters, the inability of the","page_number":417,"box":{"x":117,"y":568,"width":745,"height":12}},{"id":"453137b5-42f8-4323-82d8-b9389b913a48","block_type":"box","text":"TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":417,"box":{"x":116,"y":583,"width":765,"height":12}},{"id":"69fe5879-95c8-406e-9a9e-1cf86fa88c1e","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a","page_number":417,"box":{"x":116,"y":599,"width":734,"height":12}},{"id":"2d851eab-d680-4a45-9cc2-ffebf8872246","block_type":"box","text":"TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee","page_number":417,"box":{"x":116,"y":614,"width":758,"height":12}},{"id":"f6e127e5-4798-4d6a-aaac-b3e3595373e5","block_type":"box","text":"of the TOB Trust, the remarketing agent of the TOB Floaters and the Liquidity Provider (defined","page_number":417,"box":{"x":116,"y":630,"width":714,"height":12}},{"id":"faffdda0-d8c0-4604-b33f-e6b794417daf","block_type":"box","text":"below). In the case of an MTE, after the payment of fees, the holders of the TOB Floaters would be","page_number":417,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"61496668-2063-4891-bbfd-cd44e6986966","block_type":"box","text":"paid senior to the TOB Residual holders (","page_number":417,"box":{"x":117,"y":661,"width":307,"height":12}},{"id":"757c36d0-ac0c-4309-82ef-35b966260b67","block_type":"box","text":"i.e.","page_number":417,"box":{"x":425,"y":661,"width":20,"height":9}},{"id":"d65b8fd1-9680-43ff-a421-4b2b45b03a2d","block_type":"box","text":", the Fund). In contrast, in the case of a TOTE, after","page_number":417,"box":{"x":448,"y":661,"width":385,"height":12}},{"id":"b4c034b9-c820-4bdd-be20-9da7b1e852e3","block_type":"box","text":"payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro rata in","page_number":417,"box":{"x":117,"y":676,"width":753,"height":12}},{"id":"90f0edcb-359a-4a40-831a-b57b04ed9fa3","block_type":"box","text":"proportion to the respective face values of their certificates.","page_number":417,"box":{"x":117,"y":692,"width":437,"height":12}},{"id":"4f1dae0e-2842-4efb-af85-0214f43c4574","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically","page_number":417,"box":{"x":116,"y":723,"width":764,"height":12}},{"id":"1a8a10c5-606e-4392-b30b-65beacd9e97c","block_type":"box","text":"supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity","page_number":417,"box":{"x":116,"y":738,"width":761,"height":12}},{"id":"46aa52c1-b950-4cde-bd61-044cd69dba75","block_type":"box","text":"Provider”) that allows the holders of the TOB Floaters to tender their TOB Floaters in exchange for","page_number":417,"box":{"x":117,"y":754,"width":730,"height":12}},{"id":"169bc61b-00d1-47b8-8423-a9540d4bf5cf","block_type":"box","text":"payment of par plus accrued interest on any business day (subject to the non-occurrence of a TOTE","page_number":417,"box":{"x":117,"y":769,"width":743,"height":12}},{"id":"78256589-8873-4edd-8350-dc56123fcff5","block_type":"box","text":"described above). Depending on the structure of the TOB Trust, the Liquidity Provider may purchase","page_number":417,"box":{"x":116,"y":785,"width":747,"height":12}},{"id":"bbac9fc4-49c0-44e1-9c7f-7340332ca9e0","block_type":"box","text":"the tendered TOB Floaters, or the TOB Trust may draw upon a loan from the Liquidity Provider to","page_number":417,"box":{"x":116,"y":800,"width":723,"height":12}},{"id":"41619bb9-5997-40a0-94ba-2b6ce76eb426","block_type":"box","text":"purchase the tendered TOB Floaters.","page_number":417,"box":{"x":117,"y":816,"width":275,"height":12}},{"id":"5eb73ea1-2051-4f8c-bf42-06efcc3934bf","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to","page_number":417,"box":{"x":116,"y":847,"width":758,"height":12}},{"id":"2aa6cfd2-4eca-43de-b737-53caf81c53bd","block_type":"box","text":"make a payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion","page_number":417,"box":{"x":117,"y":862,"width":753,"height":12}},{"id":"315ece1c-5d3f-4985-a044-d54171ddfedf","block_type":"box","text":"of the Municipal Bonds held in the TOB Trust and then fund the balance, if any, of the amount owed","page_number":417,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"938fef85-9b0d-48af-ba78-1a7f16807f7f","block_type":"box","text":"II-78","page_number":417,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"eb45a7ef-fe98-4c80-ba8e-01de593a0f82","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":417,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1599b215-699c-41d5-8a8e-1d5c57285bf5","block_type":"box","text":"under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in","page_number":418,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"fa28bbc5-6455-4703-9da2-982912dc0f09","block_type":"box","text":"a TOB Trust on a recourse basis, it will typically enter into a reimbursement agreement with the","page_number":418,"box":{"x":116,"y":102,"width":712,"height":13}},{"id":"4d3cb483-51f8-41eb-a230-67226b37b526","block_type":"box","text":"Liquidity Provider pursuant to which the Fund is required to reimburse the Liquidity Provider the","page_number":418,"box":{"x":117,"y":118,"width":712,"height":12}},{"id":"1486dc97-685f-4ad1-b96c-300a01aa0faf","block_type":"box","text":"amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust, the Fund","page_number":418,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"11eb577f-ce01-444b-a28b-111300d7c440","block_type":"box","text":"will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":418,"box":{"x":116,"y":149,"width":751,"height":12}},{"id":"06dc1730-af25-4666-a321-dccf8aa1f8a6","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their","page_number":418,"box":{"x":117,"y":165,"width":678,"height":12}},{"id":"1f66a7a0-eb2b-45e0-97fe-c018d65fa122","block_type":"box","text":"participation in the TOB Trust.","page_number":418,"box":{"x":117,"y":180,"width":227,"height":12}},{"id":"466be000-1037-4906-a379-d5d17b9c820f","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are","page_number":418,"box":{"x":117,"y":211,"width":682,"height":12}},{"id":"9e4f73f0-f96e-401c-861e-61be1f24fb17","block_type":"box","text":"investments of the Fund and are presented on the Fund’s Schedule of Investments and outstanding","page_number":418,"box":{"x":117,"y":227,"width":745,"height":12}},{"id":"9df7d34c-bc83-41f3-be46-96500c3e705d","block_type":"box","text":"TOB Floaters issued by a TOB Trust are presented as liabilities in the Fund’s Statement of Assets and","page_number":418,"box":{"x":116,"y":242,"width":765,"height":12}},{"id":"16d3831c-2ecf-40d1-9c37-05762671b499","block_type":"box","text":"Liabilities. Interest income from the underlying Municipal Bonds is recorded by a Fund on an accrual","page_number":418,"box":{"x":117,"y":258,"width":747,"height":12}},{"id":"1a09162e-4125-4b8e-a8e1-92677d8393eb","block_type":"box","text":"basis. Interest expense incurred on the","page_number":418,"box":{"x":117,"y":273,"width":288,"height":12}},{"id":"c9205679-ec02-46c4-ac6b-21a11baa124d","block_type":"box","text":"TOB Floaters and other expenses related to remarketing,","page_number":418,"box":{"x":409,"y":273,"width":430,"height":12}},{"id":"b7b48d68-68de-4c49-bd96-6baa5228ac50","block_type":"box","text":"administration, trustee and other services to a TOB Trust are reported as expenses of a Fund. In","page_number":418,"box":{"x":116,"y":289,"width":722,"height":12}},{"id":"10d5b723-4f65-4c31-9b03-cc148c69e52a","block_type":"box","text":"addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented","page_number":418,"box":{"x":116,"y":304,"width":757,"height":12}},{"id":"6e308a3d-6273-4da4-8415-5861cce538f6","block_type":"box","text":"as loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s","page_number":418,"box":{"x":116,"y":320,"width":721,"height":9}},{"id":"d0a889f2-a400-4a9d-90ed-0da7114cb645","block_type":"box","text":"assets.","page_number":418,"box":{"x":116,"y":335,"width":58,"height":10}},{"id":"a139bc0f-0783-4250-87de-355b4bbd5952","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal","page_number":418,"box":{"x":117,"y":366,"width":765,"height":12}},{"id":"2c1c2985-ac34-443a-a383-4eb75795f629","block_type":"box","text":"Bonds with maturities or remarketing provisions that are comparable in duration to the periodic interval","page_number":418,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"ae594c69-038c-4997-b2fb-2ce06c2c73e2","block_type":"box","text":"of the tender option. Since the tender option feature has a shorter term than the final maturity or first","page_number":418,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"18238f43-f8c2-4d83-aaf6-0ac4028e2c9a","block_type":"box","text":"call date of the underlying Municipal Bonds deposited in the TOB Trust, the holder of the TOB Floaters","page_number":418,"box":{"x":116,"y":413,"width":766,"height":12}},{"id":"b7ca3f10-eb9c-4bf1-b609-c76e908f2041","block_type":"box","text":"relies upon the terms of the agreement with the financial institution furnishing the liquidity facility as","page_number":418,"box":{"x":117,"y":428,"width":738,"height":12}},{"id":"c8f057c6-2056-40b0-92ca-30ac2c91c43a","block_type":"box","text":"well as the credit strength of that institution. The risk associated with TOB Floaters, however, may be","page_number":418,"box":{"x":116,"y":444,"width":754,"height":12}},{"id":"3e410f50-a59e-4072-83f4-bc27de157e0e","block_type":"box","text":"increased in the current market environment as a result of recent downgrades to the credit ratings, and","page_number":418,"box":{"x":117,"y":459,"width":767,"height":12}},{"id":"dfdc0c5f-083e-4ce6-9bc1-8f8a5e087262","block_type":"box","text":"thus the perceived reliability and creditworthiness, of many major financial institutions, some of which","page_number":418,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"e73292cc-0ef1-4c2a-b75f-8ab88904a005","block_type":"box","text":"sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":418,"box":{"x":116,"y":490,"width":763,"height":12}},{"id":"49e7fb8f-1725-49ce-8b57-f4f6d107b5d2","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":418,"box":{"x":117,"y":506,"width":633,"height":12}},{"id":"ba967b22-82f6-40ed-8b76-9ab2d70b212e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions,","page_number":418,"box":{"x":117,"y":537,"width":743,"height":12}},{"id":"60dd534a-1395-443f-bde2-5d6a5f78d30a","block_type":"box","text":"reverse repurchase agreements and similar financing transactions (e.g., borrowed bonds)","page_number":418,"box":{"x":117,"y":552,"width":670,"height":12}},{"id":"110c871e-9616-4bc0-9a55-3aca39582e66","block_type":"box","text":"notwithstanding the limitation on the issuance of senior securities in Section 18 of the Investment","page_number":418,"box":{"x":117,"y":568,"width":723,"height":12}},{"id":"ed825e03-b4aa-48f4-b62a-20470b111783","block_type":"box","text":"Company Act, provided that the Fund either (i) complies with the 300% asset coverage ratio with","page_number":418,"box":{"x":117,"y":583,"width":721,"height":12}},{"id":"e968e2cc-d53a-4d67-b454-96fca127dd21","block_type":"box","text":"respect to such transactions and any other borrowings in the aggregate, or (ii) treats such transactions","page_number":418,"box":{"x":117,"y":599,"width":764,"height":12}},{"id":"d925935a-d56c-4dfd-a361-2250405cf8b8","block_type":"box","text":"as Derivatives Transactions under Rule 18f-4. See “— Derivatives — Regulation of Derivatives —","page_number":418,"box":{"x":116,"y":614,"width":730,"height":12}},{"id":"7894dcba-841b-4755-a9d0-af4da7f8c50e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act” above.","page_number":418,"box":{"x":117,"y":630,"width":411,"height":12}},{"id":"fade0643-c0eb-4770-b1ed-183f8cb209d7","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":418,"box":{"x":116,"y":661,"width":295,"height":12}},{"id":"e8288018-bf63-4763-8192-e6b7782ce6aa","block_type":"box","text":"In response to the restrictions imposed by section 619 of the","page_number":418,"box":{"x":419,"y":661,"width":447,"height":12}},{"id":"d3237c99-fd52-4e94-9ad5-28c281f9c660","block_type":"box","text":"Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Volcker Rule”), market participants","page_number":418,"box":{"x":117,"y":676,"width":761,"height":12}},{"id":"1dba923a-81ca-46f5-bbe1-5fc9a725cb5a","block_type":"box","text":"have developed a structure for TOB Trusts designed to ensure that no banking entity is sponsoring the","page_number":418,"box":{"x":117,"y":692,"width":761,"height":12}},{"id":"2c5c9e1e-63f0-472a-b170-b42cb18248a2","block_type":"box","text":"TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will establish, structure and “sponsor”","page_number":418,"box":{"x":116,"y":707,"width":760,"height":12}},{"id":"bc794614-3210-44a0-9eec-69eb1fb4d1c2","block_type":"box","text":"the TOB Trusts in which it holds TOB Residuals. In such a structure, certain responsibilities that","page_number":418,"box":{"x":116,"y":723,"width":711,"height":12}},{"id":"9b343077-e8cc-49c8-acf7-501a228cdf50","block_type":"box","text":"previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund may","page_number":418,"box":{"x":117,"y":738,"width":735,"height":12}},{"id":"14be7d64-fab9-4430-8e3b-5c3835cff495","block_type":"box","text":"utilize service providers in meeting these responsibilities. It is possible that regulators could take","page_number":418,"box":{"x":117,"y":754,"width":712,"height":12}},{"id":"d064f45f-53b4-4bbd-b8e0-db35e6971817","block_type":"box","text":"positions that could limit the market for such structured TOB Trust transactions or a Fund’s ability to","page_number":418,"box":{"x":117,"y":769,"width":738,"height":12}},{"id":"5fcf1a44-b666-4a2c-b2c0-101929faf861","block_type":"box","text":"hold TOB Residuals. Under this TOB Trust structure, a Fund has certain additional duties and","page_number":418,"box":{"x":117,"y":785,"width":694,"height":11}},{"id":"62e1c1fb-b1c1-43ad-9f73-fa846c0f8aaf","block_type":"box","text":"responsibilities, which may give rise to certain additional risks including","page_number":418,"box":{"x":117,"y":800,"width":525,"height":12}},{"id":"8488efcb-fa62-45e2-9829-28bad0f00c4c","block_type":"box","text":",","page_number":418,"box":{"x":643,"y":808,"width":3,"height":3}},{"id":"62d8be25-59ca-4b9e-81e3-ea1c7ceb43e4","block_type":"box","text":"but not limited to, compliance,","page_number":418,"box":{"x":653,"y":800,"width":221,"height":12}},{"id":"4558e6bd-680e-4486-98ba-989af46481d2","block_type":"box","text":"securities law and operational risks.","page_number":418,"box":{"x":116,"y":816,"width":264,"height":12}},{"id":"b1b850d8-5f85-49b5-80ab-ad0ad2236300","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers,","page_number":418,"box":{"x":117,"y":847,"width":724,"height":12}},{"id":"62fcbaf9-4a5a-4970-a2ed-3a4dd3bb6ab4","block_type":"box","text":"trustees, and remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual","page_number":418,"box":{"x":116,"y":862,"width":764,"height":12}},{"id":"c8cd8131-f20d-4c09-a838-9adaf0dfb060","block_type":"box","text":"holder. Similar to the traditional tender option bond structure, a Fund deposits Municipal Bonds into the","page_number":418,"box":{"x":117,"y":878,"width":768,"height":12}},{"id":"d921d60a-71ac-43d2-b776-4adf1147f025","block_type":"box","text":"II-79","page_number":418,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0998c773-8d08-477d-bfa5-3cd919829d07","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":418,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"afee0575-bf03-48ba-97d3-ace93f9cd888","block_type":"box","text":"TOB Trust in exchange for TOB Residuals, the TOB Trust then issues and sells TOB Floaters to","page_number":419,"box":{"x":116,"y":87,"width":719,"height":12}},{"id":"331bfa0c-9c91-4455-b1d8-44a6a43861fb","block_type":"box","text":"third-party investors, and the proceeds of the sale of the TOB Floaters is distributed to such TOB","page_number":419,"box":{"x":116,"y":102,"width":723,"height":13}},{"id":"d47b8a72-9c47-4328-b029-adaeb2952004","block_type":"box","text":"Residual holders (","page_number":419,"box":{"x":117,"y":118,"width":134,"height":12}},{"id":"af63f57a-2ae2-4ed3-aa59-b2517956d5c7","block_type":"box","text":"i.e.","page_number":419,"box":{"x":252,"y":118,"width":20,"height":10}},{"id":"dc124554-f303-4bfa-9054-b22bc14fffb8","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be supported by a remarketing","page_number":419,"box":{"x":275,"y":118,"width":591,"height":12}},{"id":"848e54e1-ee36-4e77-932f-96333d6c7c68","block_type":"box","text":"agent and a liquidity facility. However, the remarketing agent does not purchase tendered TOB","page_number":419,"box":{"x":116,"y":134,"width":708,"height":12}},{"id":"ee24e077-d4b9-49f9-abb2-829a8fa07edc","block_type":"box","text":"Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that","page_number":419,"box":{"x":117,"y":149,"width":765,"height":12}},{"id":"230b57bb-c9e2-4a9f-a98d-298b583c7e00","block_type":"box","text":"a TOB Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters.","page_number":419,"box":{"x":116,"y":165,"width":757,"height":11}},{"id":"6cb28e6e-9f8d-4c33-861d-41056a8d9d1f","block_type":"box","text":"In the event of a failed remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance","page_number":419,"box":{"x":117,"y":180,"width":758,"height":12}},{"id":"b3c97b62-bf7a-4593-83e9-67e8c4850133","block_type":"box","text":"a loan to the TOB Trust the proceeds of which would be used by the TOB Trust to purchase the","page_number":419,"box":{"x":116,"y":196,"width":715,"height":12}},{"id":"bb24ddca-2115-4ab0-8e1e-cb9e67160f27","block_type":"box","text":"tendered TOB Floaters. The Liquidity Provider is not obligated to advance such a loan. The TOB Trust","page_number":419,"box":{"x":116,"y":211,"width":764,"height":12}},{"id":"5bd434df-814a-45a5-b678-a08ca0fadbff","block_type":"box","text":"would be the borrower with respect to any such loan. Any loans made by a Liquidity Provider will be","page_number":419,"box":{"x":116,"y":227,"width":744,"height":12}},{"id":"6dfc802b-c7f2-4abd-ab14-7b9be9ed9a37","block_type":"box","text":"secured by the purchased TOB Floaters held by the TOB Trust.","page_number":419,"box":{"x":116,"y":242,"width":477,"height":12}},{"id":"4ac342c6-416d-4270-bc6a-cd8b1b5765fd","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals","page_number":419,"box":{"x":116,"y":270,"width":769,"height":12}},{"id":"816d521b-daf3-4838-b3f8-281841a36d78","block_type":"box","text":"or recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would","page_number":419,"box":{"x":116,"y":286,"width":735,"height":12}},{"id":"65933628-8472-4fa6-a003-0e798c9d2c64","block_type":"box","text":"generally be no contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB","page_number":419,"box":{"x":116,"y":301,"width":718,"height":13}},{"id":"473c60a8-695f-43ac-91b4-cb9adc11b218","block_type":"box","text":"Residual. However, as described above, a Fund would bear the risk of loss with respect to any","page_number":419,"box":{"x":117,"y":317,"width":706,"height":12}},{"id":"95777571-f0fd-48d6-ba38-20e9fa5347d4","block_type":"box","text":"Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":419,"box":{"x":117,"y":332,"width":420,"height":12}},{"id":"a9157e97-0390-4bd3-bff7-9a3124113490","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for","page_number":419,"box":{"x":116,"y":361,"width":730,"height":12}},{"id":"9014bea6-5489-4cff-83d7-f4fe9922fac4","block_type":"box","text":"securitizations (the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention","page_number":419,"box":{"x":116,"y":376,"width":753,"height":12}},{"id":"1f571d35-e2e5-4de4-90c5-43da732abf64","block_type":"box","text":"Rules require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets","page_number":419,"box":{"x":117,"y":392,"width":771,"height":12}},{"id":"1b3ea0ec-9459-4885-be99-7cc439984bb0","block_type":"box","text":"supporting the TOB Trust’s Municipal Bonds. The Risk Retention Rules may adversely affect the","page_number":419,"box":{"x":116,"y":407,"width":721,"height":12}},{"id":"d00262ba-162f-4a01-a57a-6048eca34dfb","block_type":"box","text":"Fund’s ability to engage in TOB Trust transactions or increase the costs of such transactions in certain","page_number":419,"box":{"x":117,"y":423,"width":764,"height":12}},{"id":"b10e2f3b-87ef-4ace-b49d-7de63dd3437e","block_type":"box","text":"circumstances.","page_number":419,"box":{"x":116,"y":438,"width":117,"height":10}},{"id":"fd1f7328-a106-451e-ab72-d08829c881eb","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":419,"box":{"x":116,"y":467,"width":763,"height":12}},{"id":"38e01e0d-1f40-4a0a-b878-b3234d99c614","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through","page_number":419,"box":{"x":117,"y":482,"width":729,"height":12}},{"id":"3aed360f-d3ef-4078-9056-56a1771466f8","block_type":"box","text":"reduced demand for and liquidity of municipal bonds and increased financing costs for municipal","page_number":419,"box":{"x":117,"y":498,"width":719,"height":12}},{"id":"15a2f723-3afc-4f8c-ad4e-e527fd389dce","block_type":"box","text":"issuers. Any such developments could adversely affect the Funds. The ultimate impact of these rules","page_number":419,"box":{"x":117,"y":513,"width":754,"height":12}},{"id":"f8ff2153-3b1d-4ae2-82fb-e6a91c80ebac","block_type":"box","text":"on the TOB market and the overall municipal market is not yet certain.","page_number":419,"box":{"x":116,"y":529,"width":520,"height":12}},{"id":"f73a08fc-648b-4c40-ba18-e84ffb699f21","block_type":"box","text":"Yields.","page_number":419,"box":{"x":118,"y":557,"width":47,"height":10}},{"id":"b2f8c091-9cd2-4b53-b6dc-7cab31fdc7c5","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general","page_number":419,"box":{"x":166,"y":557,"width":650,"height":12}},{"id":"d96c1569-fba2-4b95-a0c0-d3757ada927c","block_type":"box","text":"condition of the money market and of the municipal bond market, the size of a particular offering, the","page_number":419,"box":{"x":116,"y":573,"width":751,"height":12}},{"id":"bfd19f52-a26d-4b58-8402-21a89f7f5957","block_type":"box","text":"financial condition of the issuer, the maturity of the obligation and the rating of the issue. The ability of","page_number":419,"box":{"x":116,"y":588,"width":759,"height":12}},{"id":"17a7d7f1-2cc0-4ea2-a14d-9f3aa7edec04","block_type":"box","text":"a Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of","page_number":419,"box":{"x":116,"y":604,"width":757,"height":12}},{"id":"139316b0-a2d0-4709-8508-70747fc25b68","block_type":"box","text":"the securities in which the Fund invests to meet their obligations for the payment of interest and","page_number":419,"box":{"x":116,"y":619,"width":714,"height":12}},{"id":"99871c78-f3c4-435a-ac7d-d69257ebe07a","block_type":"box","text":"principal when due. There are variations in the risks involved in holding Municipal Bonds, both within a","page_number":419,"box":{"x":117,"y":635,"width":763,"height":12}},{"id":"3bbccecf-ff40-4a74-9f59-8adcf23eea40","block_type":"box","text":"particular classification and between classifications, depending on numerous factors. Furthermore, the","page_number":419,"box":{"x":117,"y":650,"width":763,"height":12}},{"id":"e128f43d-58b5-479c-b2fb-1e5904cbe803","block_type":"box","text":"rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal Bonds may be","page_number":419,"box":{"x":117,"y":666,"width":753,"height":12}},{"id":"3e132e8b-a5dc-451c-ad59-123d122dff54","block_type":"box","text":"subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights of","page_number":419,"box":{"x":116,"y":681,"width":763,"height":12}},{"id":"a047edfd-2128-4d72-831b-95648e4dcc3d","block_type":"box","text":"creditors generally and to general equitable principles, which may limit the enforcement of certain","page_number":419,"box":{"x":116,"y":697,"width":721,"height":12}},{"id":"8f9a699b-2400-4fdc-ac57-062306922de2","block_type":"box","text":"remedies.","page_number":419,"box":{"x":117,"y":712,"width":71,"height":10}},{"id":"5d6b0cca-0e7e-4e4b-98c1-f6feca4e6afa","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":419,"box":{"x":118,"y":740,"width":344,"height":13}},{"id":"0fdd35e6-bda5-4631-b593-98aecdb616ed","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a","page_number":419,"box":{"x":468,"y":740,"width":365,"height":13}},{"id":"559bf065-8236-4217-ada6-fa6eb11966ad","block_type":"box","text":"floating or variable interest rate adjustment formula and a right of demand on the part of the holder","page_number":419,"box":{"x":116,"y":756,"width":731,"height":12}},{"id":"b62a52cf-399a-448f-8d80-33f7b2b3f767","block_type":"box","text":"thereof to receive payment of the unpaid principal balance plus accrued interest upon a short notice","page_number":419,"box":{"x":116,"y":771,"width":739,"height":13}},{"id":"038b8734-b883-4062-a725-c05dacd86583","block_type":"box","text":"period not to exceed seven days.","page_number":419,"box":{"x":117,"y":787,"width":244,"height":12}},{"id":"935149b7-8e24-4f05-8fc1-dc3d5b0e493f","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be","page_number":419,"box":{"x":116,"y":815,"width":763,"height":12}},{"id":"b08d4d26-2538-465a-a21b-78a40b106439","block_type":"box","text":"honored. The interest rates are adjustable at periodic intervals to some prevailing market rate for","page_number":419,"box":{"x":117,"y":831,"width":721,"height":12}},{"id":"745e4a5a-c6d1-48ee-9dc0-ceb3cdbb5b83","block_type":"box","text":"similar investments, such adjustment formula being calculated to maintain the market rate of the","page_number":419,"box":{"x":116,"y":846,"width":718,"height":12}},{"id":"96ce5022-c8d4-4ef7-a3fb-3eb6e4d16a95","block_type":"box","text":"VRDOs at approximately the par value of the VRDOs on the adjustment date. The adjustments","page_number":419,"box":{"x":116,"y":862,"width":710,"height":12}},{"id":"6531247f-d9ac-4f9a-9032-bf88f0a84d5f","block_type":"box","text":"typically are based upon the Securities Industry and Financial Markets Association (“SIFMA”) Index.","page_number":419,"box":{"x":116,"y":877,"width":746,"height":12}},{"id":"97777d4c-6025-40ac-82ef-ed73066971f7","block_type":"box","text":"II-80","page_number":419,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"58b699ad-c65e-48d3-bf5f-9cbab2434f60","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":419,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9fe2eb04-f203-4a67-9b57-a6d70101e4df","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate","page_number":420,"box":{"x":117,"y":87,"width":751,"height":12}},{"id":"844f4fad-12e8-4d9a-8afb-a372b30d5104","block_type":"box","text":"securities. During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its","page_number":420,"box":{"x":116,"y":102,"width":746,"height":13}},{"id":"7b2a8a58-a023-4810-b45a-7d7127398630","block_type":"box","text":"shareholders will forego the opportunity for capital appreciation. During periods of rising interest rates,","page_number":420,"box":{"x":116,"y":118,"width":761,"height":12}},{"id":"a7fdb3ed-2b0b-4f0a-90b4-6c2d29df29ee","block_type":"box","text":"however, a Fund’s yield on a VRDO will increase and the Fund’s shareholders will have a reduced risk","page_number":420,"box":{"x":117,"y":134,"width":764,"height":12}},{"id":"ae0acaed-5e5e-4aa3-a4be-24f65ee99a07","block_type":"box","text":"of capital depreciation.","page_number":420,"box":{"x":116,"y":149,"width":173,"height":12}},{"id":"06bb201e-005c-4b0e-a540-d1b193c6b929","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":420,"box":{"x":118,"y":180,"width":488,"height":12}},{"id":"568d69c4-6bfa-4abd-94f1-eb9fdf3e5eeb","block_type":"box","text":"The Municipal Funds and certain","page_number":420,"box":{"x":608,"y":180,"width":253,"height":12}},{"id":"91261ec4-4b00-4757-9d33-f7a53791786f","block_type":"box","text":"other funds deal in financial futures contracts based on a long-term municipal bond index developed by","page_number":420,"box":{"x":116,"y":196,"width":770,"height":12}},{"id":"6d5502d6-5379-4a47-bfc9-307f2f4a27ba","block_type":"box","text":"the Chicago Board of Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal","page_number":420,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"267a87c9-fa95-4acf-97f2-0ac41d2365ff","block_type":"box","text":"Bond Index is comprised of 40 long-term, actively traded tax-exempt municipal revenue and general","page_number":420,"box":{"x":117,"y":227,"width":746,"height":12}},{"id":"e7e60ce4-d165-4f0a-a848-668ef035a829","block_type":"box","text":"obligation bonds. Each bond included in the Municipal Bond Index must be rated A or higher by","page_number":420,"box":{"x":116,"y":242,"width":712,"height":12}},{"id":"40f133f7-3bd5-4d5e-9657-c98fc851ac1d","block_type":"box","text":"Moody’s or S&P and must have a remaining maturity of 19 years or more. Twice a month new issues","page_number":420,"box":{"x":117,"y":258,"width":754,"height":12}},{"id":"9f34f069-bb01-4ea2-8312-2f7a2e5e4d98","block_type":"box","text":"satisfying the eligibility requirements are added to, and an equal number of old issues are deleted from,","page_number":420,"box":{"x":116,"y":273,"width":771,"height":12}},{"id":"ad17a166-d881-477b-af0c-311194126984","block_type":"box","text":"the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":420,"box":{"x":116,"y":289,"width":734,"height":12}},{"id":"3b1a72af-b140-46bc-aa44-8fd60ff6c26e","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six","page_number":420,"box":{"x":116,"y":304,"width":670,"height":12}},{"id":"d0daf81d-ecf0-421d-ba62-abb6fb6d0e09","block_type":"box","text":"dealer-to-dealer brokers.","page_number":420,"box":{"x":116,"y":320,"width":189,"height":9}},{"id":"f92d7d90-f47c-4521-ab7b-f05e13348ba8","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the","page_number":420,"box":{"x":116,"y":351,"width":760,"height":12}},{"id":"4d9069d8-5b74-4dc5-b84e-20ce9c7cddf6","block_type":"box","text":"CBT assures performance under futures contracts through a clearing corporation, a nonprofit","page_number":420,"box":{"x":117,"y":366,"width":694,"height":12}},{"id":"550ae4a3-f776-4944-ae77-1d898153b1a1","block_type":"box","text":"organization managed by the exchange membership that is also responsible for handling daily","page_number":420,"box":{"x":116,"y":382,"width":704,"height":12}},{"id":"a1045338-a97d-4ae5-a0de-5bc576ea37ff","block_type":"box","text":"accounting of deposits or withdrawals of margin.","page_number":420,"box":{"x":116,"y":397,"width":364,"height":12}},{"id":"b10ecd34-0ebb-4e95-9aba-209f453f6cef","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial","page_number":420,"box":{"x":116,"y":428,"width":735,"height":12}},{"id":"0b3988d8-0ae2-4c81-b4af-3f1a712512fe","block_type":"box","text":"futures contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s","page_number":420,"box":{"x":116,"y":444,"width":741,"height":12}},{"id":"de4c4b9b-43c2-4ac4-9bdd-d9a5bda0b20b","block_type":"box","text":"ability to hedge effectively all or a portion of the value of its Municipal Bonds through the use of such","page_number":420,"box":{"x":116,"y":459,"width":749,"height":12}},{"id":"e3d7a7f9-5780-42d8-822a-ad21347c58d9","block_type":"box","text":"financial futures contracts will depend in part on the degree to which price movements in the index","page_number":420,"box":{"x":116,"y":475,"width":734,"height":12}},{"id":"752b39c2-030a-43c9-b8f2-89e3aa616ce4","block_type":"box","text":"underlying the financial futures contract correlate with the price movements of the Municipal Bonds","page_number":420,"box":{"x":117,"y":490,"width":737,"height":12}},{"id":"2b55698d-a8e8-4642-b1e6-42ef898d9a6a","block_type":"box","text":"held by the Fund. The correlation may be affected by disparities in the average maturity, ratings,","page_number":420,"box":{"x":117,"y":506,"width":718,"height":12}},{"id":"05a82714-665b-4e42-a72e-6d8228ecf9c0","block_type":"box","text":"geographical mix or structure of a Municipal Fund’s investments as compared to those comprising the","page_number":420,"box":{"x":116,"y":521,"width":760,"height":12}},{"id":"83a80a2a-c6da-424d-bd30-5582a597300e","block_type":"box","text":"Municipal Bond Index and general economic or political factors. In addition, the correlation between","page_number":420,"box":{"x":117,"y":537,"width":741,"height":12}},{"id":"4dc92385-aadc-4837-a218-32b3e7789a5e","block_type":"box","text":"movements in the value of the Municipal Bond Index may be subject to change over time as additions","page_number":420,"box":{"x":117,"y":552,"width":759,"height":12}},{"id":"a484ea7f-2918-4ba3-878f-54a4999f4a67","block_type":"box","text":"to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":420,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"9673b1ef-e4f0-4717-b230-e95e6c608e4d","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be","page_number":420,"box":{"x":116,"y":583,"width":750,"height":12}},{"id":"52ed443a-7f1c-4b70-8c0c-473b172ab2dc","block_type":"box","text":"adversely affected by similar factors and the risk of imperfect correlation between movements in the","page_number":420,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"2689a278-e724-45ae-b52e-4fca9fdf13e8","block_type":"box","text":"prices of such futures contracts and the prices of Municipal Bonds held by a Municipal Fund may be","page_number":420,"box":{"x":117,"y":614,"width":745,"height":12}},{"id":"23ee95af-ab6e-41c7-a556-20d79d0436d9","block_type":"box","text":"greater. Municipal Bond Index futures contracts were approved for trading in 1985. Trading in such","page_number":420,"box":{"x":116,"y":630,"width":738,"height":12}},{"id":"be59e4ce-9373-4a90-b4cb-954eda9df4ba","block_type":"box","text":"futures contracts may tend to be less liquid than trading in other futures contracts. The trading of","page_number":420,"box":{"x":116,"y":645,"width":721,"height":12}},{"id":"87f5c041-ba2b-4b7c-8a6a-9a57381fb3ea","block_type":"box","text":"futures contracts also is subject to certain market risks, such as inadequate trading activity, which","page_number":420,"box":{"x":116,"y":661,"width":723,"height":12}},{"id":"e16cd8c4-25de-44de-bfa6-1d0bf5a0b2cf","block_type":"box","text":"could at times make it difficult or impossible to liquidate existing positions.","page_number":420,"box":{"x":116,"y":676,"width":545,"height":12}},{"id":"f3f0307e-ed6b-4553-97f2-18ccd2eadedd","block_type":"box","text":"Call Rights.","page_number":420,"box":{"x":117,"y":707,"width":83,"height":12}},{"id":"c1dd9b78-7d80-42df-bc85-bf1bea8bf7f1","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such","page_number":420,"box":{"x":206,"y":707,"width":616,"height":12}},{"id":"77140978-8019-4e59-8ede-a7c255337684","block_type":"box","text":"Municipal Bond for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may","page_number":420,"box":{"x":117,"y":723,"width":706,"height":12}},{"id":"2d7de84a-4a26-4827-91ff-e5b9402641b6","block_type":"box","text":"exercise such right to require a mandatory tender for the purchase of related Municipal Bonds, subject","page_number":420,"box":{"x":116,"y":738,"width":759,"height":12}},{"id":"957d27c4-7421-4825-aced-e0f73432a290","block_type":"box","text":"to certain conditions. A Call Right that is not exercised prior to maturity of the related Municipal Bond","page_number":420,"box":{"x":116,"y":754,"width":745,"height":12}},{"id":"9f35a8ae-84e8-4acb-8e97-dfcf91315b20","block_type":"box","text":"will expire without value. The economic effect of holding both the Call Right and the related Municipal","page_number":420,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"e9dfef94-257b-4143-b5e2-75405052ff84","block_type":"box","text":"Bond is identical to holding a Municipal Bond as a non-callable security. Certain investments in such","page_number":420,"box":{"x":117,"y":785,"width":742,"height":12}},{"id":"ccfd35de-6c9e-4e6e-9a73-b762f738be49","block_type":"box","text":"obligations may be illiquid.","page_number":420,"box":{"x":116,"y":800,"width":195,"height":12}},{"id":"c31e453f-80af-486c-8642-d3d01d3a97d1","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":420,"box":{"x":116,"y":831,"width":305,"height":12}},{"id":"9ee73ce7-49f8-41dd-af55-9a5a3902757a","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":420,"box":{"x":423,"y":831,"width":414,"height":12}},{"id":"0ad0dc94-94bf-48ca-a6bc-063a76a25889","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as","page_number":420,"box":{"x":116,"y":847,"width":750,"height":12}},{"id":"bf74153e-c358-4d8f-8928-aadb61eaf114","block_type":"box","text":"Municipal Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets","page_number":420,"box":{"x":117,"y":862,"width":767,"height":12}},{"id":"ecde11f6-9a77-4fc9-8eaf-df03621a3c5a","block_type":"box","text":"Association Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these","page_number":420,"box":{"x":116,"y":878,"width":730,"height":12}},{"id":"2af00ad3-c82b-4c7f-bccd-b03774635b96","block_type":"box","text":"II-81","page_number":420,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"54865d41-d821-4de7-90e9-62b1827abfe2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":420,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"14b49b38-2b8c-4814-bf96-f3b01e2987ee","block_type":"box","text":"transactions, the Fund expects to do so primarily to preserve a return or spread on a particular investment or","page_number":421,"box":{"x":116,"y":87,"width":765,"height":12}},{"id":"8a4dedeb-8330-40c9-947c-e51488c51ebb","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates","page_number":421,"box":{"x":117,"y":102,"width":707,"height":13}},{"id":"c241f492-6f21-499e-8176-a572afc0b1de","block_type":"box","text":"purchasing at a later date. A Fund intends to use these transactions primarily as a hedge rather than as a","page_number":421,"box":{"x":117,"y":118,"width":743,"height":12}},{"id":"f69ce484-2f1b-44ff-901c-1c6846dd2234","block_type":"box","text":"speculative investment. However, a Fund also may invest in MMD Swaps and SIFMA Swaps to enhance","page_number":421,"box":{"x":116,"y":134,"width":743,"height":12}},{"id":"dc8fab0f-c45d-4d32-a686-be310092021c","block_type":"box","text":"income or gain or to increase the Fund’s yield, for example, during periods of steep interest rate yield curves","page_number":421,"box":{"x":117,"y":149,"width":762,"height":12}},{"id":"d5a73d6c-c8b9-4364-829e-af5009422d1c","block_type":"box","text":"(","page_number":421,"box":{"x":117,"y":165,"width":4,"height":12}},{"id":"62c73853-b0c9-4f91-8c8f-c0a6d027f8fd","block_type":"box","text":"i.e.","page_number":421,"box":{"x":121,"y":165,"width":19,"height":9}},{"id":"55b49f85-6a1b-4254-ab56-f1cfa431d71b","block_type":"box","text":", wide differences between short-term and long-term interest rates).","page_number":421,"box":{"x":143,"y":165,"width":477,"height":12}},{"id":"1567275a-2965-48be-8117-c4a9445e01a3","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund","page_number":421,"box":{"x":116,"y":196,"width":747,"height":12}},{"id":"1c244787-6778-4ab5-af54-322fb8c6931e","block_type":"box","text":"exchanges with another party their respective commitments to pay or receive interest (","page_number":421,"box":{"x":116,"y":211,"width":642,"height":12}},{"id":"537e4cd5-cc09-468c-978d-5e3fd2a74aaa","block_type":"box","text":"e.g.","page_number":421,"box":{"x":760,"y":214,"width":25,"height":9}},{"id":"02e8babc-ae91-49e2-8706-50fffe0a003d","block_type":"box","text":", an","page_number":421,"box":{"x":788,"y":214,"width":32,"height":8}},{"id":"37b231a8-47f9-42dc-a807-3a1d4b154602","block_type":"box","text":"exchange of fixed rate payments for floating rate payments linked to the SIFMA Municipal Swap","page_number":421,"box":{"x":116,"y":227,"width":717,"height":12}},{"id":"0d2879c5-6511-4659-8aa1-095d50afdcf5","block_type":"box","text":"Index). Because the underlying index is a tax-exempt index, SIFMA Swaps may reduce cross-market","page_number":421,"box":{"x":117,"y":242,"width":755,"height":12}},{"id":"ba582e28-8412-48b6-9fd7-99043d7178cd","block_type":"box","text":"risks incurred by a Fund and increase a Fund’s ability to hedge effectively. SIFMA Swaps are typically","page_number":421,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"ce99f351-15f1-485e-aa6a-36bed4e1caf2","block_type":"box","text":"quoted for the entire yield curve, beginning with a seven day floating rate index out to 30 years. The","page_number":421,"box":{"x":116,"y":273,"width":745,"height":12}},{"id":"8464f878-b2da-478e-b174-69d1e5048417","block_type":"box","text":"duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond with","page_number":421,"box":{"x":116,"y":289,"width":747,"height":12}},{"id":"1a84233c-378b-4379-9647-9eaa8fea480b","block_type":"box","text":"the same attributes as the swap (","page_number":421,"box":{"x":116,"y":304,"width":247,"height":12}},{"id":"af7fbc5f-dfa3-4631-b59b-cb648b2ff22e","block_type":"box","text":"e.g.","page_number":421,"box":{"x":365,"y":307,"width":25,"height":9}},{"id":"c3619d31-ff42-4a67-8c16-36b9886a28dd","block_type":"box","text":", coupon, maturity, call feature).","page_number":421,"box":{"x":393,"y":304,"width":240,"height":12}},{"id":"14cf57ee-c1c9-4d01-8585-571ba0f543db","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap","page_number":421,"box":{"x":116,"y":335,"width":727,"height":12}},{"id":"d3407a37-25cb-4d01-a37d-cc1b0acc94d1","block_type":"box","text":"permits a Fund to lock in a specified municipal interest rate for a portion of its portfolio to preserve a","page_number":421,"box":{"x":117,"y":351,"width":744,"height":12}},{"id":"cc1e4931-3661-432e-932c-d27651bdbe00","block_type":"box","text":"return on a particular investment or a portion of its portfolio as a duration management technique or to","page_number":421,"box":{"x":117,"y":366,"width":761,"height":12}},{"id":"c07cbbd7-3a28-45b1-9f9c-c18522858aeb","block_type":"box","text":"protect against any increase in the price of securities to be purchased at a later date. By using an MMD","page_number":421,"box":{"x":117,"y":382,"width":771,"height":12}},{"id":"67a8d3c9-c62f-4f44-ae1e-21f638044b18","block_type":"box","text":"Swap, a Fund can create a synthetic long or short position, allowing the Fund to select the most","page_number":421,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"67efbefc-15c6-421b-bf29-251140bd92c9","block_type":"box","text":"attractive part of the yield curve. An MMD Swap is a contract between a Fund and an MMD Swap","page_number":421,"box":{"x":116,"y":413,"width":729,"height":12}},{"id":"266e9866-4233-46c7-a6d8-658fabf8626c","block_type":"box","text":"provider pursuant to which the parties agree to make payments to each other on a notional amount,","page_number":421,"box":{"x":117,"y":428,"width":744,"height":12}},{"id":"fa2cd1b7-cd11-4d00-b69d-4ea51530dc8d","block_type":"box","text":"contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or below a","page_number":421,"box":{"x":116,"y":444,"width":769,"height":12}},{"id":"096867bf-aaf1-4b10-ba28-46551cfeee34","block_type":"box","text":"specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and","page_number":421,"box":{"x":116,"y":459,"width":754,"height":12}},{"id":"40ee83ed-9f1e-4943-b717-c81dc63b5326","block_type":"box","text":"the Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration","page_number":421,"box":{"x":116,"y":475,"width":763,"height":12}},{"id":"e764ae6a-e594-4b6b-9b9c-976022769075","block_type":"box","text":"date, the counterparty to the contract will make a payment to the Fund equal to the specified level","page_number":421,"box":{"x":116,"y":490,"width":730,"height":12}},{"id":"42a512b4-eb54-4c2b-a3e6-d623e2d712f6","block_type":"box","text":"minus the actual level, multiplied by the notional amount of the contract. If the Municipal Market Data","page_number":421,"box":{"x":117,"y":506,"width":751,"height":12}},{"id":"4e9dd298-519f-4d58-93e7-18dbca5edd2c","block_type":"box","text":"AAA General Obligation Scale is above the specified level on the expiration date, a Fund will make a","page_number":421,"box":{"x":116,"y":521,"width":752,"height":12}},{"id":"27c575e1-26c2-460a-b1b7-8020022d16d3","block_type":"box","text":"payment to the counterparty equal to the actual level minus the specified level, multiplied by the","page_number":421,"box":{"x":117,"y":537,"width":714,"height":12}},{"id":"752fe29a-53e5-4bf6-a223-605af58e782f","block_type":"box","text":"notional amount of the contract.","page_number":421,"box":{"x":117,"y":552,"width":239,"height":10}},{"id":"b5c51b3a-e5ba-49e1-ab4b-e5d99520082e","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps,","page_number":421,"box":{"x":117,"y":583,"width":444,"height":12}},{"id":"6b844eec-b287-49fd-b227-85923c879a4e","block_type":"box","text":"there is a risk that municipal yields will","page_number":421,"box":{"x":561,"y":583,"width":289,"height":12}},{"id":"6adaf586-35b1-4718-bf48-2603f1428ba2","block_type":"box","text":"move in the opposite direction than anticipated by a Fund, which would cause the Fund to make","page_number":421,"box":{"x":117,"y":599,"width":716,"height":12}},{"id":"6c880969-63ac-4f03-bd36-154caa9ac3b9","block_type":"box","text":"payments to its counterparty in the transaction that could adversely affect the Fund’s performance.","page_number":421,"box":{"x":117,"y":614,"width":735,"height":12}},{"id":"eb9f614c-14db-473f-97a7-a7b683261b13","block_type":"box","text":"Insured Municipal Bonds.","page_number":421,"box":{"x":117,"y":645,"width":186,"height":12}},{"id":"ca7dd2e9-4ac0-4826-a910-4b4cf182adce","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees","page_number":421,"box":{"x":305,"y":645,"width":566,"height":12}},{"id":"fc76fd96-3f31-4fc1-aec8-11e3b0b04545","block_type":"box","text":"that interest payments on the bond will be made on time and the principal will be repaid when the bond","page_number":421,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"57381ae0-fec1-4c35-a408-351e9113edfb","block_type":"box","text":"matures. Either the issuer of the bond or the Fund purchases the insurance. Insurance is expected to","page_number":421,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"9ede3453-ede1-4522-8740-c695674906fd","block_type":"box","text":"protect the Fund against losses caused by a bond issuer’s failure to make interest or principal","page_number":421,"box":{"x":117,"y":692,"width":693,"height":12}},{"id":"56eb073f-452f-4e5a-896e-5b2dafc9b386","block_type":"box","text":"payments. However, insurance does not protect the Fund or its shareholders against losses caused by","page_number":421,"box":{"x":117,"y":707,"width":762,"height":12}},{"id":"cebe0e49-1756-4815-a2a0-24f7dde6a679","block_type":"box","text":"declines in a bond’s market value. Also, the Fund cannot be certain that any insurance company does","page_number":421,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"4874783b-b748-4eb7-951d-9ca038263e97","block_type":"box","text":"not make these payments. In addition, if the Fund purchases the insurance, it may pay the premiums,","page_number":421,"box":{"x":117,"y":738,"width":752,"height":12}},{"id":"5380429d-c54a-4697-8a7c-49df025a210c","block_type":"box","text":"which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims","page_number":421,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"da5550fc-6967-4a72-831b-f2c7707b2d77","block_type":"box","text":"paying ability, financial strength, or equivalent ratings of at least investment grade. However, if","page_number":421,"box":{"x":117,"y":769,"width":699,"height":12}},{"id":"3f36d698-5eb6-4041-8fa4-dd412ebb9f7f","block_type":"box","text":"insurance from insurers with these ratings is not available, the Fund may use insurance companies","page_number":421,"box":{"x":117,"y":785,"width":733,"height":12}},{"id":"2874b735-67fb-4063-a778-9024816433b4","block_type":"box","text":"with lower ratings or stop purchasing insurance or insured bonds. If a bond’s insurer fails to fulfill its","page_number":421,"box":{"x":116,"y":800,"width":736,"height":12}},{"id":"4155bf51-8202-4cf9-a14b-010c55a5c37e","block_type":"box","text":"obligations or loses its credit rating, the value of the bond could drop.","page_number":421,"box":{"x":116,"y":816,"width":511,"height":12}},{"id":"11300d8e-e8fa-48f4-997c-f47c50d46cac","block_type":"box","text":"Build America Bonds.","page_number":421,"box":{"x":116,"y":847,"width":159,"height":9}},{"id":"28c851ec-fb00-4e31-ac76-4c923c5ba4a0","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S.","page_number":421,"box":{"x":276,"y":847,"width":604,"height":12}},{"id":"6114aa96-31d5-41f3-9c89-ae8ade0fcd6d","block_type":"box","text":"federal income tax credit; however, the issuer of a Build America Bond may instead elect to receive a","page_number":421,"box":{"x":116,"y":862,"width":756,"height":12}},{"id":"0736600a-9af0-482c-8f70-133ab2d47476","block_type":"box","text":"cash payment directly from the federal government in lieu of holders such as the fund receiving a tax","page_number":421,"box":{"x":116,"y":878,"width":752,"height":12}},{"id":"078bc276-c602-416d-a929-b9c3bd474d5b","block_type":"box","text":"II-82","page_number":421,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"b1572221-c020-4a64-a4d4-81e926ab980c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":421,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9e1a9e0b-240f-4eae-b839-e2051e8903ff","block_type":"box","text":"credit. The interest on Build America Bonds is taxable for U.S. federal income tax purposes. If the Fund","page_number":422,"box":{"x":116,"y":87,"width":772,"height":12}},{"id":"2943ac73-200f-4e51-850f-cd8afde148ad","block_type":"box","text":"does receive tax credits from Build America Bonds or other tax credit bonds on one or more specified","page_number":422,"box":{"x":116,"y":102,"width":757,"height":12}},{"id":"3393ecea-80b2-47b2-8150-64ffc78987f6","block_type":"box","text":"dates during the fund’s taxable year, and the Fund satisfies the minimum distribution requirement, the","page_number":422,"box":{"x":116,"y":118,"width":760,"height":12}},{"id":"8b2fa4c5-e90c-4d0b-bd98-c44cd7b0f8fa","block_type":"box","text":"Fund may elect for U.S. federal income tax purposes to pass through to shareholders tax credits","page_number":422,"box":{"x":117,"y":134,"width":719,"height":12}},{"id":"c11e0893-de26-4d2e-b059-f1abbdda3f9c","block_type":"box","text":"otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond is defined in","page_number":422,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"1f7b1d75-06db-4392-84da-92e24701fd6d","block_type":"box","text":"the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":422,"box":{"x":116,"y":165,"width":761,"height":12}},{"id":"e1a8ba09-0f38-4aa0-b785-dd846b6921c1","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy","page_number":422,"box":{"x":116,"y":180,"width":729,"height":12}},{"id":"86c6b570-fcdf-4323-a0e2-4d3d4b14c885","block_type":"box","text":"bond, each of which must meet certain requirements specified in the Code), a “Build America Bond”","page_number":422,"box":{"x":117,"y":196,"width":744,"height":12}},{"id":"621341fe-4661-4f10-b158-9b59ee9f19fd","block_type":"box","text":"(which includes certain qualified bonds issued before January 1, 2011) or certain other specified","page_number":422,"box":{"x":117,"y":211,"width":717,"height":12}},{"id":"1e33eeec-6d35-477f-b07d-87881454f105","block_type":"box","text":"bonds. If the Fund were to so elect, a shareholder would be required to include in income and would be","page_number":422,"box":{"x":117,"y":227,"width":771,"height":11}},{"id":"47eb0e53-70bb-4480-90ce-3031f8826f9f","block_type":"box","text":"entitled to claim as a tax credit an amount equal to a proportionate share of such credits, and such","page_number":422,"box":{"x":116,"y":242,"width":735,"height":12}},{"id":"122f541d-8a08-4a7c-864a-a32257533b9b","block_type":"box","text":"amount would be subject to withholding provisions of the Code. Certain limitations may apply on the","page_number":422,"box":{"x":116,"y":258,"width":746,"height":12}},{"id":"d7ce60aa-e746-4f7e-bf43-ddbfb2d2c602","block_type":"box","text":"extent to which the credit may be claimed.","page_number":422,"box":{"x":116,"y":273,"width":318,"height":12}},{"id":"89faeb5f-a365-4d08-9b17-395b095108a8","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":422,"box":{"x":118,"y":304,"width":263,"height":12}},{"id":"c96b038b-93f2-473b-9ee4-3827c0f8dfa7","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which","page_number":422,"box":{"x":382,"y":304,"width":494,"height":12}},{"id":"59d7079a-368f-4cf5-b2da-73e940d50a84","block_type":"box","text":"may be in the form of tender option bonds, variable rate demand obligations, participations, beneficial","page_number":422,"box":{"x":117,"y":320,"width":757,"height":12}},{"id":"af8e7ae6-b447-461d-8d02-06b82ef48b2b","block_type":"box","text":"interests in a trust, partnership interests or other forms. These investments are described in greater","page_number":422,"box":{"x":117,"y":335,"width":741,"height":12}},{"id":"49c5b657-a0bf-492e-af2a-f66980952e4e","block_type":"box","text":"detail above in this section. Some of the structures used by certain Funds include interests in long-term","page_number":422,"box":{"x":116,"y":351,"width":771,"height":12}},{"id":"a69bd406-84fd-46da-b9a6-afce19642082","block_type":"box","text":"fixed-rate municipal debt obligations, held by a trustee or custodian, that are coupled with tender","page_number":422,"box":{"x":116,"y":366,"width":720,"height":12}},{"id":"b34ade6e-a688-4aa1-832f-a82a77947a3b","block_type":"box","text":"option, demand and other features when the tax-exempt municipal investments are created. Together,","page_number":422,"box":{"x":116,"y":382,"width":764,"height":12}},{"id":"4c651ae9-86bb-45e1-9a86-1b92ec6385a1","block_type":"box","text":"these features entitle the holder of the interest to tender (or put) the underlying municipal debt","page_number":422,"box":{"x":116,"y":397,"width":701,"height":12}},{"id":"d4a97c14-cef6-4ddf-94a1-5f540f8b6637","block_type":"box","text":"obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":422,"box":{"x":116,"y":413,"width":667,"height":12}},{"id":"e8078560-9b17-4973-8cd0-246fabfb7120","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to","page_number":422,"box":{"x":117,"y":444,"width":745,"height":12}},{"id":"90df75ef-91bb-490e-8fee-e829735a1e78","block_type":"box","text":"receive specific future interest payments, principal payments, or both, on the underlying securities held","page_number":422,"box":{"x":117,"y":459,"width":766,"height":12}},{"id":"dfd02adf-bbd1-482b-90d4-067abcc4c115","block_type":"box","text":"by the custodian. Under such arrangements, the holder of the custodial receipt has the option to tender","page_number":422,"box":{"x":117,"y":475,"width":769,"height":12}},{"id":"ab308d87-ab4c-4d89-a80e-cd235cdbdda5","block_type":"box","text":"the underlying securities at their face value to the sponsor (","page_number":422,"box":{"x":116,"y":490,"width":440,"height":12}},{"id":"18895865-b43a-41b2-91a2-40720b91a1e0","block_type":"box","text":"e.g.","page_number":422,"box":{"x":557,"y":493,"width":26,"height":9}},{"id":"ad0c42f6-3267-4dd0-aabb-aa6db8c6be74","block_type":"box","text":", a Fund, or a bank or broker-dealer or","page_number":422,"box":{"x":586,"y":490,"width":289,"height":11}},{"id":"b71d1a23-ff68-40b7-9d33-20ff881c0b83","block_type":"box","text":"other financial institution), which is paid periodic fees equal to the difference between the securities’","page_number":422,"box":{"x":116,"y":506,"width":743,"height":12}},{"id":"710d14db-d9aa-43da-bdc7-22eb0a5a6bcd","block_type":"box","text":"fixed coupon rate and the rate that would cause the securities, coupled with the tender option, to trade","page_number":422,"box":{"x":116,"y":521,"width":763,"height":12}},{"id":"5d3fb1d1-c70a-4c4d-b2e3-9a7aeb105554","block_type":"box","text":"at par on the date of a rate adjustment.","page_number":422,"box":{"x":116,"y":537,"width":295,"height":12}},{"id":"a89ae16f-6117-4a78-b3dd-215708e89e62","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the","page_number":422,"box":{"x":116,"y":568,"width":752,"height":12}},{"id":"725f9032-ffa0-430f-8258-c7e7984f9fbe","block_type":"box","text":"Fund’s participation bears to the total principal amount of the Municipal Bond, and typically provides for","page_number":422,"box":{"x":117,"y":583,"width":769,"height":12}},{"id":"3b1bbacc-2e5f-40f0-93b3-d8ca4249971e","block_type":"box","text":"a repurchase feature for all or any part of the full principal amount of the participation interest, plus","page_number":422,"box":{"x":116,"y":599,"width":735,"height":12}},{"id":"98a20758-2371-43a5-ae61-262c9720da74","block_type":"box","text":"accrued interest. Trusts and partnerships are typically used to convert long-term fixed rate high quality","page_number":422,"box":{"x":116,"y":614,"width":763,"height":12}},{"id":"81ef3ad4-6d62-426f-9a04-89cbfc7847ed","block_type":"box","text":"bonds of a single state or municipal issuer into variable or floating rate demand instruments.","page_number":422,"box":{"x":117,"y":630,"width":686,"height":12}},{"id":"9b47b715-f838-4722-ad03-53ee942a4c0b","block_type":"box","text":"The Municipal Bond Funds may hold participation intere","page_number":422,"box":{"x":116,"y":661,"width":397,"height":12}},{"id":"b85d6d4e-9d5e-4f0b-8640-b3d79f1d1dd2","block_type":"box","text":"sts and custodial receipts for municipal debt","page_number":422,"box":{"x":513,"y":661,"width":311,"height":12}},{"id":"4c2cf30d-8a9e-4c64-9cb2-f8f4f810c9c2","block_type":"box","text":"obligations which give the holder the right to receive","page_number":422,"box":{"x":116,"y":676,"width":368,"height":12}},{"id":"7b3a8195-b1cf-43c9-8a86-83c57bfcb74b","block_type":"box","text":"payment of principal subject to the conditions described","page_number":422,"box":{"x":489,"y":676,"width":393,"height":12}},{"id":"b9c3ac8c-dcf5-47ad-9449-c5416c49d039","block_type":"box","text":"above. The IRS has not ruled on whether the interest re","page_number":422,"box":{"x":116,"y":692,"width":396,"height":9}},{"id":"53712052-d2b4-4430-91f8-226e4ff85702","block_type":"box","text":"ceived on tax-exempt municipal investments in the","page_number":422,"box":{"x":512,"y":692,"width":359,"height":12}},{"id":"2b521c5c-04f6-4f96-b4fe-552f8ea0a660","block_type":"box","text":"form of participation interests or custodial receipts is","page_number":422,"box":{"x":116,"y":707,"width":368,"height":12}},{"id":"759f94d5-b55c-486c-afde-15c915370336","block_type":"box","text":"tax-exempt, and accordingly, purchases of any such","page_number":422,"box":{"x":489,"y":707,"width":371,"height":12}},{"id":"c140cc54-5043-4bf9-9018-083ca4ba5dc5","block_type":"box","text":"interests or receipts are based on the opinions of couns","page_number":422,"box":{"x":117,"y":723,"width":393,"height":12}},{"id":"9e40396e-cb64-44bb-b55e-187aef0fff09","block_type":"box","text":"el to the sponsors of such derivative securities.","page_number":422,"box":{"x":511,"y":723,"width":331,"height":12}},{"id":"2c69479a-eda2-4ebc-9f94-91c293849898","block_type":"box","text":"Neither a Fund nor its investment adviser or sub-advis","page_number":422,"box":{"x":117,"y":738,"width":384,"height":10}},{"id":"86d69d9e-b842-422a-a41d-9a7c36e70f1a","block_type":"box","text":"ers will review the proceedings related to the creation","page_number":422,"box":{"x":501,"y":738,"width":377,"height":12}},{"id":"1fcb15ae-a368-4912-a6f6-907f571c8d7f","block_type":"box","text":"of any tax-exempt municipal investments or the basis for such opinions.","page_number":422,"box":{"x":116,"y":754,"width":507,"height":12}},{"id":"a2ca66cc-d20b-499c-bd22-37bc5bcd8ba2","block_type":"box","text":"Operational and Technology Risks","page_number":422,"box":{"x":117,"y":785,"width":276,"height":12}},{"id":"979e3511-6ab6-47ad-a44d-8ce5c00f83bc","block_type":"box","text":". The Fund and the entities with which it interacts directly or","page_number":422,"box":{"x":394,"y":785,"width":440,"height":12}},{"id":"458b754d-5725-4dda-b44f-fd4f8631b771","block_type":"box","text":"indirectly are susceptible to operational and technology risks, including those related to human errors,","page_number":422,"box":{"x":117,"y":800,"width":752,"height":12}},{"id":"0c6e2d3c-0cfc-4fb0-8a02-4fa50399f516","block_type":"box","text":"processing errors, communication errors, systems failures, cybersecurity incidents, and the use of","page_number":422,"box":{"x":117,"y":816,"width":726,"height":12}},{"id":"cf1965be-75ca-4cd6-874e-82a9272f8fa5","block_type":"box","text":"artificial intelligence and machine learning (“AI”), which may result in losses for the Fund and its","page_number":422,"box":{"x":116,"y":831,"width":713,"height":12}},{"id":"9ce53760-b484-404d-9477-84331821329d","block_type":"box","text":"shareholders or impair the Fund’s operations. These entities include, but are not limited to, the Fund’s","page_number":422,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"c51c085b-7863-4a7d-8272-4c6c5ecbebdb","block_type":"box","text":"adviser, administrator, distributor, other service providers (e.g., index and benchmark providers,","page_number":422,"box":{"x":116,"y":862,"width":716,"height":12}},{"id":"2bc8b118-a3c9-4af4-a0fa-07cc5d744f12","block_type":"box","text":"accountants, custodians, and transfer agents), financial intermediaries, counterparties, market makers,","page_number":422,"box":{"x":116,"y":878,"width":768,"height":12}},{"id":"e80cd70c-b993-47f1-8a86-d7b59f71b292","block_type":"box","text":"II-83","page_number":422,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2948f13e-b3fe-4edd-a55d-5a66d3fd6d9c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":422,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"eb218409-051e-4392-835a-a3b294ad100c","block_type":"box","text":"Authorized Participants, listing exchanges, other financial market operators, and governmental","page_number":423,"box":{"x":116,"y":87,"width":706,"height":12}},{"id":"bce2444e-af4c-4392-9656-09216ce75029","block_type":"box","text":"authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":423,"box":{"x":116,"y":102,"width":748,"height":13}},{"id":"884f2374-61c9-4998-8efd-bd6e0a84ee80","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s","page_number":423,"box":{"x":116,"y":118,"width":711,"height":12}},{"id":"18c178d5-c02a-497d-883d-31f6fd5511dc","block_type":"box","text":"investments in such issuers to lose value. The Fund may incur substantial costs in order to mitigate","page_number":423,"box":{"x":117,"y":134,"width":741,"height":12}},{"id":"540f4fe7-46b4-4a45-bd37-d7319e89f257","block_type":"box","text":"operational and technology risks.","page_number":423,"box":{"x":116,"y":149,"width":250,"height":12}},{"id":"f60af8ee-0224-4b24-a9f4-31fe5d5a8fd2","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in","page_number":423,"box":{"x":117,"y":180,"width":754,"height":12}},{"id":"8c0ae12e-0ba7-4e07-9650-4e8fb2b92663","block_type":"box","text":"which the Fund invests, the Fund or any of its service providers. They include, but are not limited to,","page_number":423,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"24ad6186-596f-4acb-8d93-19aa6b46cb37","block_type":"box","text":"gaining unauthorized access to systems, misappropriating assets or sensitive information, corrupting or","page_number":423,"box":{"x":116,"y":211,"width":772,"height":12}},{"id":"ecf3e24b-edff-4b23-abcf-070b6145ba1e","block_type":"box","text":"destroying data, and causing operational disruption. Geopolitical tension may increase the scale and","page_number":423,"box":{"x":116,"y":227,"width":751,"height":12}},{"id":"62b3999e-58c0-48ed-8cf8-238845609a8a","block_type":"box","text":"sophistication of deliberate attacks, particularly those from nation states or from entities with nation","page_number":423,"box":{"x":116,"y":242,"width":738,"height":12}},{"id":"6f8a891e-e848-4ae9-bdd4-cccb240c514f","block_type":"box","text":"state backing. Cybersecurity incidents may result in any of the following: financial losses; interference","page_number":423,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"4d247a9c-a4ec-4256-a754-82b19aa10c0d","block_type":"box","text":"with the Fund’s ability to calculate its NAV; disclosure of confidential information; impediments to","page_number":423,"box":{"x":116,"y":273,"width":721,"height":12}},{"id":"ce1c51b5-0bf7-410e-ad94-16f2ad37e362","block_type":"box","text":"trading; submission of erroneous trades by the Fund or erroneous subscription or redemption orders;","page_number":423,"box":{"x":116,"y":289,"width":754,"height":12}},{"id":"b6154cef-4c85-4d1a-8019-8179ee0b96d2","block_type":"box","text":"the inability of the Fund or its service providers to transact business; violations of applicable privacy","page_number":423,"box":{"x":116,"y":304,"width":743,"height":12}},{"id":"ceff394c-1cbd-4576-88f6-830f68d6e130","block_type":"box","text":"and other laws; regulatory fines; penalties; reputational damage; reimbursement or other compensation","page_number":423,"box":{"x":116,"y":320,"width":772,"height":12}},{"id":"e0f38ec8-972b-4797-a166-5dc081104bb9","block_type":"box","text":"costs; and other legal and compliance expenses. 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AI technology advancements, including efficiency","page_number":423,"box":{"x":116,"y":506,"width":708,"height":12}},{"id":"52c0949d-89f5-486d-a1f5-34eedcf72d52","block_type":"box","text":"improvements, without related increases in the adoption and development of such technologies, could","page_number":423,"box":{"x":117,"y":521,"width":761,"height":12}},{"id":"cabb1d99-3b3b-40dc-997c-c9cc30a86042","block_type":"box","text":"also negatively impact demand for, and the valuation of, digital infrastructure assets.","page_number":423,"box":{"x":116,"y":537,"width":630,"height":12}},{"id":"31282102-5549-4c54-b500-c3db078e9744","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party","page_number":423,"box":{"x":116,"y":568,"width":731,"height":12}},{"id":"bd9802e4-a07a-40d5-ab63-5ecf545a11c2","block_type":"box","text":"service providers or any counterparties, whether or not known to the Fund, also use AI technology in","page_number":423,"box":{"x":116,"y":583,"width":751,"height":12}},{"id":"cc3d1a6e-3b2f-4b3f-9e41-80f9c0549f76","block_type":"box","text":"their business activities. The Fund and its service providers may not be in a position to control the use","page_number":423,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"2025940e-b3aa-43ae-bbc8-4bd6fded8edb","block_type":"box","text":"of AI technology in third-party products or services.","page_number":423,"box":{"x":116,"y":614,"width":383,"height":12}},{"id":"f8ff1513-e1cb-4983-a9bf-8a5a9810f029","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable","page_number":423,"box":{"x":117,"y":645,"width":750,"height":12}},{"id":"259dd5c4-7d01-472b-8972-59defeb73152","block_type":"box","text":"policies, contractual or other obligations or restrictions, resulting in such confidential information","page_number":423,"box":{"x":117,"y":661,"width":708,"height":12}},{"id":"ad273faa-d2f1-4ddb-be3f-7f2adbbb1895","block_type":"box","text":"becoming accessible by other third-party AI technology applications and users.","page_number":423,"box":{"x":117,"y":676,"width":583,"height":12}},{"id":"e2d365ac-b4bb-4494-a222-f8c9a2c6dfae","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and","page_number":423,"box":{"x":117,"y":707,"width":700,"height":12}},{"id":"a99899e0-5de0-49cc-9a91-4b8b0537f92b","block_type":"box","text":"analysis of large amounts of data, may incorporate biased or inaccurate data, and it is not possible or","page_number":423,"box":{"x":116,"y":723,"width":752,"height":12}},{"id":"a57a5dfb-325f-4d5d-8a45-66e0928ce03d","block_type":"box","text":"practicable to incorporate all relevant data into the models that AI technology utilizes to operate.","page_number":423,"box":{"x":117,"y":738,"width":709,"height":12}},{"id":"bd904943-1610-449f-b755-c5db68a73099","block_type":"box","text":"Certain data in such models will inevitably contain a degree of inaccuracy and error, or could otherwise","page_number":423,"box":{"x":117,"y":754,"width":762,"height":12}},{"id":"604dd572-54ae-4fab-82e5-c584fee35f68","block_type":"box","text":"be inadequate or flawed, which would be likely to degrade the effectiveness of AI technology. The","page_number":423,"box":{"x":117,"y":769,"width":724,"height":12}},{"id":"92f77ee1-f225-422b-8177-18d79865154a","block_type":"box","text":"output or results of any such AI technologies may therefore be incomplete, erroneous, distorted or","page_number":423,"box":{"x":116,"y":785,"width":728,"height":12}},{"id":"ad80077e-7446-4cab-b90d-e4ddd05e8534","block_type":"box","text":"misleading. Further, AI tools may lack transparency as to how data is utilized and how outputs are","page_number":423,"box":{"x":117,"y":800,"width":726,"height":12}},{"id":"8abe7c6c-3caa-4582-8a60-97c631d369b9","block_type":"box","text":"generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":423,"box":{"x":116,"y":816,"width":679,"height":12}},{"id":"6e36d963-f319-46b6-8512-d5449621fa60","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to","page_number":423,"box":{"x":117,"y":831,"width":764,"height":12}},{"id":"81663642-54f2-49db-ad3b-bad686bc5f29","block_type":"box","text":"the risks of AI technology use, any such inaccuracies or errors could have adverse impacts on the","page_number":423,"box":{"x":116,"y":847,"width":732,"height":12}},{"id":"dc9abc58-c252-42a2-acd2-21b9835ce3bb","block_type":"box","text":"Fund or its investments.","page_number":423,"box":{"x":117,"y":862,"width":182,"height":10}},{"id":"f2fd69f2-b131-4cd2-aced-742bb889a2e3","block_type":"box","text":"II-84","page_number":423,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"75a18a0b-b821-4b4f-8d1b-3baa567301e6","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":423,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c9290377-9b06-491c-a4db-00dcf204209e","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to","page_number":424,"box":{"x":117,"y":87,"width":705,"height":12}},{"id":"8f2718e4-8316-454a-b1bb-bd5b31f5deb3","block_type":"box","text":"monitoring and compliance. 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The Fund and its adviser seek to reduce these risks through","page_number":424,"box":{"x":116,"y":397,"width":706,"height":12}},{"id":"647b32e5-f708-414f-940d-216c5bacd016","block_type":"box","text":"controls, procedures and oversight, including establishing business continuity plans and risk","page_number":424,"box":{"x":116,"y":413,"width":687,"height":12}},{"id":"216aece6-34a9-4b56-9702-495221a16d17","block_type":"box","text":"management systems. 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Regulators continue to develop new rules and standards","page_number":424,"box":{"x":117,"y":568,"width":747,"height":12}},{"id":"45a1a7e6-3405-40e3-b7c7-749218cf6b7c","block_type":"box","text":"related to cybersecurity and data protection. 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A Fund’s ability to","page_number":425,"box":{"x":116,"y":165,"width":373,"height":12}},{"id":"1d3141f2-a3d9-47b7-b110-413247ec176f","block_type":"box","text":"redeem or exercise a participation note generally is","page_number":425,"box":{"x":490,"y":165,"width":366,"height":12}},{"id":"7162c12b-72a8-4ee7-91b0-700f18f370ef","block_type":"box","text":"dependent on the liquidity in the local trading market f","page_number":425,"box":{"x":116,"y":180,"width":375,"height":12}},{"id":"ee07d0a8-7e50-4d93-8b49-362053b39759","block_type":"box","text":"for the security underlying the participation note.","page_number":425,"box":{"x":491,"y":180,"width":346,"height":12}},{"id":"5dbbc124-9c55-42b3-bb2b-21bfa478a25a","block_type":"box","text":"Portfolio Turnover Rates.","page_number":425,"box":{"x":116,"y":211,"width":193,"height":10}},{"id":"d788959d-7a11-4527-b276-6575a6fbca3a","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":425,"box":{"x":309,"y":211,"width":562,"height":12}},{"id":"edd91777-cddd-4ce1-a3be-f6734ddea841","block_type":"box","text":"purchase when the Manager believes investment consi","page_number":425,"box":{"x":117,"y":227,"width":390,"height":12}},{"id":"38ec4018-7b23-4cfa-be4e-21ae35e01905","block_type":"box","text":"derations warrant such sale or purchase. Although","page_number":425,"box":{"x":509,"y":227,"width":363,"height":12}},{"id":"4661b4df-2a6f-4795-9ba0-35fc8d15f621","block_type":"box","text":"certain Funds will use an approach to investing that is largely a passive, indexing approach, such Funds","page_number":425,"box":{"x":116,"y":242,"width":742,"height":12}},{"id":"a89f9c73-f133-427f-824c-f07d53342190","block_type":"box","text":"may engage in a substantial number of portfolio transactions. 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High","page_number":425,"box":{"x":514,"y":304,"width":362,"height":12}},{"id":"8c3a4423-e125-4a74-8891-34f0e8b7e629","block_type":"box","text":"portfolio turnover (","page_number":425,"box":{"x":117,"y":320,"width":128,"height":12}},{"id":"ece07948-b708-4e6a-99b4-003848a847c4","block_type":"box","text":"i.e.","page_number":425,"box":{"x":246,"y":320,"width":19,"height":9}},{"id":"6c929e16-c559-4533-b699-3857cebc9933","block_type":"box","text":", 100% or more) may result in increased transaction costs to a Fund, including","page_number":425,"box":{"x":268,"y":320,"width":559,"height":12}},{"id":"c8c48be6-3bca-47bb-a106-72ce7bff9428","block_type":"box","text":"brokerage commissions, dealer mark-ups and other trans","page_number":425,"box":{"x":117,"y":335,"width":407,"height":12}},{"id":"3d939b9d-c369-4f38-941a-1818ba5bd44d","block_type":"box","text":"action costs on the sale of the securities and","page_number":425,"box":{"x":525,"y":335,"width":320,"height":10}},{"id":"2ef9770a-f01e-4eb5-9341-aeee79905356","block_type":"box","text":"reinvestment in other securities. The sale of a Fund’s se","page_number":425,"box":{"x":117,"y":351,"width":397,"height":9}},{"id":"556b9c75-c56d-482e-a7df-61906f3615aa","block_type":"box","text":"curities may result in the recognition of capital gain","page_number":425,"box":{"x":514,"y":351,"width":363,"height":12}},{"id":"e73b4a17-7609-40e7-adcc-e7dac709c4e1","block_type":"box","text":"or loss. Given the frequency of sales, such gain or","page_number":425,"box":{"x":116,"y":366,"width":357,"height":12}},{"id":"0119e64c-cbef-4e68-aab3-f43ef5f22f9a","block_type":"box","text":"r loss will likely be short-term capital gain or loss. These","page_number":425,"box":{"x":472,"y":366,"width":395,"height":12}},{"id":"6735c666-68fc-474c-b42e-36f0b80ee1ce","block_type":"box","text":"effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":425,"box":{"x":116,"y":382,"width":651,"height":12}},{"id":"9d9e0b56-6dd5-46e9-95f0-2d0ef9fa71ac","block_type":"box","text":"Preferred Stock.","page_number":425,"box":{"x":116,"y":413,"width":123,"height":9}},{"id":"68021523-cdbb-420b-8693-aa5e40ecb93e","block_type":"box","text":"Certain Funds may invest in preferred sto","page_number":425,"box":{"x":240,"y":413,"width":300,"height":12}},{"id":"5df05e60-29e5-4915-9e8a-22f531d33657","block_type":"box","text":"cks. Preferred stock has a preference over","page_number":425,"box":{"x":540,"y":413,"width":308,"height":12}},{"id":"f89676df-6056-45d4-b895-3274d6131626","block_type":"box","text":"common stock in liquidation (and generally dividends","page_number":425,"box":{"x":116,"y":428,"width":381,"height":12}},{"id":"3c92b565-15db-4bc1-99f2-7027acad15fa","block_type":"box","text":"as well) but is subordinated to the bond holders and","page_number":425,"box":{"x":497,"y":428,"width":372,"height":12}},{"id":"a0bd9f7e-4904-4d51-b073-087b6df7b937","block_type":"box","text":"other creditors in all respects. As a general rule, t","page_number":425,"box":{"x":116,"y":444,"width":348,"height":12}},{"id":"ab52f833-ebfd-4f4f-af89-a7175cc19f8a","block_type":"box","text":"he market value of preferred stock with a fixed dividend","page_number":425,"box":{"x":465,"y":444,"width":396,"height":12}},{"id":"2d490e00-db1c-481b-b240-76ec0034919d","block_type":"box","text":"rate and no conversion element varies inversely with","page_number":425,"box":{"x":117,"y":459,"width":377,"height":12}},{"id":"ab577e6d-1757-4d9f-a753-dfccb012e2df","block_type":"box","text":"interest rates and perceived credit risk, while the","page_number":425,"box":{"x":495,"y":459,"width":346,"height":12}},{"id":"e6d1ac85-e4b7-4c8d-b592-0b3abe71c03c","block_type":"box","text":"market price of convertible preferred stock generally","page_number":425,"box":{"x":117,"y":475,"width":373,"height":12}},{"id":"b5a1d572-8aea-40c5-b304-2fb9c0b030db","block_type":"box","text":"also reflects some element of conversion value.","page_number":425,"box":{"x":490,"y":475,"width":343,"height":9}},{"id":"10b46b57-53af-40b9-a699-c3922717f5ec","block_type":"box","text":"Because preferred stock is junior to debt securities","page_number":425,"box":{"x":117,"y":490,"width":363,"height":12}},{"id":"76b78d93-4f23-4eb5-9013-dfdac0396267","block_type":"box","text":"and other obligations of the issuer, deterioration in the","page_number":425,"box":{"x":480,"y":490,"width":387,"height":12}},{"id":"e6019fdf-715d-485a-b701-cfa66bb85347","block_type":"box","text":"credit quality of the issuer will cause greater changes in t","page_number":425,"box":{"x":116,"y":506,"width":402,"height":12}},{"id":"29c261d5-225d-4c02-aa8d-8be5c1e28480","block_type":"box","text":"he value of a preferred stock than in a more senior","page_number":425,"box":{"x":519,"y":506,"width":362,"height":12}},{"id":"367b2248-5e6e-4304-bc25-a0922ece715f","block_type":"box","text":"debt security with similar stated yield characteristics.","page_number":425,"box":{"x":116,"y":521,"width":370,"height":12}},{"id":"6997c388-0db7-4bdb-8745-4e4f56359041","block_type":"box","text":"Unlike interest payments on debt securities, preferred","page_number":425,"box":{"x":487,"y":521,"width":390,"height":12}},{"id":"1e73e806-5941-42d2-b751-0086921bb1c0","block_type":"box","text":"stock dividends are payable only if declared by the issuer","page_number":425,"box":{"x":116,"y":537,"width":406,"height":12}},{"id":"85f9deb8-060c-4efa-9e7e-ff2406e963c6","block_type":"box","text":"’s board of directors. Preferred stock also may be","page_number":425,"box":{"x":523,"y":537,"width":354,"height":12}},{"id":"29c32152-9761-491e-ab3b-9c3b37496270","block_type":"box","text":"subject to optional or mandatory redemption provisions.","page_number":425,"box":{"x":116,"y":552,"width":400,"height":12}},{"id":"963cd795-ce76-4d63-b0c0-cd831a67892d","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":425,"box":{"x":118,"y":583,"width":224,"height":12}},{"id":"84541a1c-016d-4946-93ca-aa90624debe5","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment","page_number":425,"box":{"x":344,"y":583,"width":507,"height":12}},{"id":"7fbca53f-407d-4c1b-96c6-0200229c3a03","block_type":"box","text":"funds that pay dividends that are exempt from regular U.S. federal income tax. Such funds in turn","page_number":425,"box":{"x":116,"y":599,"width":728,"height":12}},{"id":"1f60d0d6-475f-478b-8cbd-e13150fb9d08","block_type":"box","text":"invest in municipal bonds and other assets that pay interest or make distributions that are exempt from","page_number":425,"box":{"x":117,"y":614,"width":765,"height":12}},{"id":"d32ca897-7e54-44c8-a2b2-49b52f27f03d","block_type":"box","text":"regular U.S. federal income tax, such as revenue bonds issued by state or local agencies to fund the","page_number":425,"box":{"x":117,"y":630,"width":751,"height":12}},{"id":"d3b3ea24-75c0-4dbd-a228-fb8fd45fef1f","block_type":"box","text":"development of low-income, multi-family housing. Investment in such tax-exempt preferred shares","page_number":425,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"db1c19e9-c879-4cfa-bd8e-2aea44a8e881","block_type":"box","text":"involves many of the same issues as investing in other investment companies. These investments also","page_number":425,"box":{"x":117,"y":661,"width":763,"height":12}},{"id":"61e4d383-9e28-4398-aca4-4cb5b499fe8d","block_type":"box","text":"have additional risks, including illiquid investments risk, the absence of regulation governing","page_number":425,"box":{"x":117,"y":676,"width":679,"height":12}},{"id":"4e07899c-1ae2-445a-8d9f-eba59d0616bb","block_type":"box","text":"investment practices, capital structure and leverage, affiliated transactions and other matters, and","page_number":425,"box":{"x":117,"y":692,"width":723,"height":12}},{"id":"8ca6db80-3bd9-491b-a55f-c3658f7da1a9","block_type":"box","text":"concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat","page_number":425,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"09cb2d84-b7f8-4528-81ff-61cd7ad97f41","block_type":"box","text":"investments in tax-exempt preferred shares as investments in municipal bonds.","page_number":425,"box":{"x":117,"y":723,"width":587,"height":12}},{"id":"6e2c1228-c90e-4311-8803-e6a5a575c096","block_type":"box","text":"Trust Preferred Securities.","page_number":425,"box":{"x":118,"y":754,"width":193,"height":9}},{"id":"8a77ead5-c050-40d6-8b27-552056525269","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred","page_number":425,"box":{"x":318,"y":754,"width":514,"height":12}},{"id":"5cc41532-f1d2-41e0-bbd5-eba0eb10fd3b","block_type":"box","text":"securities are typically issued by corporations, generally in the form of interest bearing notes with","page_number":425,"box":{"x":116,"y":769,"width":718,"height":12}},{"id":"ce3db40a-b48c-4f4b-a0f8-931471484f24","block_type":"box","text":"preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the","page_number":425,"box":{"x":117,"y":785,"width":746,"height":12}},{"id":"6c3dae52-ef85-4afb-98d0-0f22987fcc57","block_type":"box","text":"form of beneficial interests in subordinated debentures or similarly structured securities. The trust","page_number":425,"box":{"x":116,"y":800,"width":721,"height":12}},{"id":"8a3fa8fd-4d08-43a3-9688-e8868748c6f4","block_type":"box","text":"preferred securities market consists of both fixed and adjustable coupon rate securities that are either","page_number":425,"box":{"x":117,"y":816,"width":753,"height":12}},{"id":"74df1bed-0ef2-4b22-8974-2a8ef080c5da","block_type":"box","text":"perpetual in nature or have stated maturity dates.","page_number":425,"box":{"x":117,"y":831,"width":370,"height":12}},{"id":"0b34c06b-a40b-4824-a0d4-649364bf21ad","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit","page_number":425,"box":{"x":116,"y":862,"width":748,"height":12}},{"id":"72522365-5745-45bc-8830-6a226c7bd267","block_type":"box","text":"from a guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition,","page_number":425,"box":{"x":116,"y":878,"width":771,"height":12}},{"id":"ba6f1cf6-06e7-4fde-ad4c-664f639b6384","block_type":"box","text":"II-86","page_number":425,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"ee41a2d0-8e4d-4043-aab4-5ac5a96aea42","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":425,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3c424c78-10f6-4539-beaf-5d9c6e3ed40c","block_type":"box","text":"trust preferred securities typically permit an issuer to defer the payment of income for five years or","page_number":426,"box":{"x":116,"y":87,"width":733,"height":12}},{"id":"832448f9-f42e-47ba-b44b-45389ab94d58","block_type":"box","text":"more without triggering an event of default. Because of their subordinated position in the capital","page_number":426,"box":{"x":117,"y":102,"width":713,"height":13}},{"id":"b06d6eb8-fbe3-4107-a962-ef1da99d2f2b","block_type":"box","text":"structure of an issuer, the ability to defer payments for extended periods of time without default","page_number":426,"box":{"x":116,"y":118,"width":708,"height":12}},{"id":"5523a389-ecca-49d7-9947-2978f9299f02","block_type":"box","text":"consequences to the issuer, and certain other features (such as restrictions on common dividend","page_number":426,"box":{"x":116,"y":134,"width":725,"height":12}},{"id":"6540bdb1-3949-4868-860a-d2043959a0dd","block_type":"box","text":"payments by the issuer or ultimate guarantor when full cumulative payments on the trust preferred","page_number":426,"box":{"x":117,"y":149,"width":733,"height":12}},{"id":"0614389b-984b-4d8f-8f22-e5904c187396","block_type":"box","text":"securities have not been made), these trust preferred securities are often treated as close substitutes","page_number":426,"box":{"x":116,"y":165,"width":756,"height":12}},{"id":"ae54214b-a56a-4172-99c3-92b7a4ff7920","block_type":"box","text":"for traditional preferred securities, both by issuers and investors.","page_number":426,"box":{"x":116,"y":180,"width":483,"height":12}},{"id":"78d1f752-c351-4c79-b663-0cf99a1f8b0a","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":426,"box":{"x":116,"y":211,"width":740,"height":12}},{"id":"54ff73dd-351c-4f51-8b20-83b45fc31767","block_type":"box","text":"®","page_number":426,"box":{"x":857,"y":210,"width":9,"height":7}},{"id":"6634c0cf-94aa-4737-b000-d626976f3e89","block_type":"box","text":"”);","page_number":426,"box":{"x":867,"y":211,"width":20,"height":12}},{"id":"6775310c-6e0b-4372-9ff0-fd8e81f64f76","block_type":"box","text":"monthly income preferred securities (“MIPS","page_number":426,"box":{"x":117,"y":227,"width":322,"height":12}},{"id":"5ab51d85-84e1-4868-80f2-d1057cda7efd","block_type":"box","text":"®","page_number":426,"box":{"x":439,"y":226,"width":10,"height":7}},{"id":"d46687d3-ca87-4a09-9eee-1ca5daaf9082","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":426,"box":{"x":449,"y":227,"width":330,"height":12}},{"id":"77603fe9-0b75-4785-9e6d-1b61b3aee616","block_type":"box","text":"®","page_number":426,"box":{"x":780,"y":226,"width":9,"height":7}},{"id":"f949c61f-a2c0-4d19-ae66-751b2b74beeb","block_type":"box","text":"” ); quarterly","page_number":426,"box":{"x":790,"y":227,"width":95,"height":12}},{"id":"b0a14073-555a-4e3f-9319-c54214704192","block_type":"box","text":"income debt securities (“QUIDS","page_number":426,"box":{"x":117,"y":242,"width":234,"height":12}},{"id":"1629945d-de5b-4347-bc47-534dbe1732e1","block_type":"box","text":"®","page_number":426,"box":{"x":352,"y":241,"width":10,"height":7}},{"id":"3fb6457d-c6a1-43ad-81f9-67621b2f2138","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":426,"box":{"x":362,"y":242,"width":361,"height":12}},{"id":"3561323b-ab5d-4437-8e25-fd814b504694","block_type":"box","text":"SM","page_number":426,"box":{"x":724,"y":242,"width":16,"height":6}},{"id":"4d29b8c1-464a-4037-a011-5ec6f7673107","block_type":"box","text":"”); corporate trust","page_number":426,"box":{"x":741,"y":242,"width":133,"height":12}},{"id":"50299496-3bfe-4d08-80ab-9253ca0a0d31","block_type":"box","text":"securities (“CORTS","page_number":426,"box":{"x":116,"y":258,"width":145,"height":12}},{"id":"f8bd55ce-2e07-4121-a5c5-2980ee851334","block_type":"box","text":"®","page_number":426,"box":{"x":262,"y":257,"width":9,"height":7}},{"id":"db60f224-fee7-4424-b0d0-fee7d543b53d","block_type":"box","text":"”); public income notes (“PINES","page_number":426,"box":{"x":271,"y":258,"width":235,"height":12}},{"id":"c001acec-4a5c-4c44-94b4-bebbc7819d3d","block_type":"box","text":"®","page_number":426,"box":{"x":507,"y":257,"width":9,"height":7}},{"id":"93080e39-78f4-4309-903b-dc3ee15945c9","block_type":"box","text":"”); and other trust preferred securities.","page_number":426,"box":{"x":517,"y":258,"width":287,"height":12}},{"id":"137faa7b-2d64-46a0-8d2b-1e416ce2a3a9","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in","page_number":426,"box":{"x":116,"y":289,"width":766,"height":12}},{"id":"7b7dc9b5-271b-47dc-9fea-5377c0f0f87a","block_type":"box","text":"nature. In certain instances, a final maturity date may be extended and/or the final payment of principal","page_number":426,"box":{"x":117,"y":304,"width":767,"height":12}},{"id":"c6a65a99-0146-4cbd-84ae-e140abcfadce","block_type":"box","text":"may be deferred at the issuer’s option for a specified time without default. No redemption can typically","page_number":426,"box":{"x":117,"y":320,"width":760,"height":12}},{"id":"f482fa2b-a83b-4560-8028-e5454b6b8bba","block_type":"box","text":"take place unless all cumulative payment obligations have been met, although issuers may be able to","page_number":426,"box":{"x":116,"y":335,"width":758,"height":12}},{"id":"96cd610d-e49f-4c1c-af9e-2515c47423c9","block_type":"box","text":"engage in open-market repurchases without regard to whether all payments have been paid.","page_number":426,"box":{"x":116,"y":351,"width":693,"height":12}},{"id":"fdddba81-b67b-4b7c-9dca-3577fea59c56","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by","page_number":426,"box":{"x":117,"y":382,"width":737,"height":12}},{"id":"e9a73f8c-f228-4024-ae1b-e2d8db2fad9c","block_type":"box","text":"operating companies and are not a direct obligation of an operating company. At the time the trust or","page_number":426,"box":{"x":116,"y":397,"width":752,"height":12}},{"id":"db0eca18-87ff-4612-9157-a85654d7d5a4","block_type":"box","text":"special purpose entity sells such preferred securities to investors, it purchases debt of the operating","page_number":426,"box":{"x":116,"y":413,"width":745,"height":12}},{"id":"5f07e417-ba35-4711-8a0d-44938d2917db","block_type":"box","text":"company (with terms comparable to those of the trust or special purpose entity securities), which","page_number":426,"box":{"x":116,"y":428,"width":722,"height":12}},{"id":"0d84fac1-7c8b-41d9-841e-09b5c559f6d5","block_type":"box","text":"enables the operating company to deduct for tax purposes the interest paid on the debt held by the","page_number":426,"box":{"x":116,"y":444,"width":739,"height":12}},{"id":"505ed7dd-fe66-49f0-8af4-187bcd65f4b3","block_type":"box","text":"trust or special purpose entity. The trust or special purpose entity is generally required to be treated as","page_number":426,"box":{"x":116,"y":459,"width":765,"height":12}},{"id":"02a23777-6b04-4674-bcc4-63d999c52412","block_type":"box","text":"transparent for U.S. federal income tax purposes such that the holders of the trust preferred securities","page_number":426,"box":{"x":116,"y":475,"width":762,"height":12}},{"id":"51117e7e-2749-4d4f-808b-f80a44a22aaf","block_type":"box","text":"are treated as owning beneficial interests in the underlying debt of the operating company. Accordingly,","page_number":426,"box":{"x":116,"y":490,"width":772,"height":12}},{"id":"5d2f47be-180b-45fb-a6a8-90105098fd5c","block_type":"box","text":"payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":426,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"c7e7c503-8157-496f-9395-b6271e09aaad","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating","page_number":426,"box":{"x":117,"y":521,"width":732,"height":12}},{"id":"936dffd4-3320-463c-950d-9d6d2a4354fa","block_type":"box","text":"company’s debt and would have priority with respect to the operating company’s earnings and profits","page_number":426,"box":{"x":116,"y":537,"width":754,"height":12}},{"id":"21323fc1-9c2e-481e-bd47-22409ce8f822","block_type":"box","text":"over the operating company’s common shareholders, but would typically be subordinated to other","page_number":426,"box":{"x":116,"y":552,"width":729,"height":12}},{"id":"6194ce41-f8ec-4fa0-b699-2c41f61d9109","block_type":"box","text":"classes of the operating company’s debt. Typically a preferred share has a rating that is slightly below","page_number":426,"box":{"x":116,"y":568,"width":760,"height":12}},{"id":"bea442fc-85e5-4d14-9134-1e3d13181a2c","block_type":"box","text":"that of its corresponding operating company’s senior debt securities.","page_number":426,"box":{"x":116,"y":583,"width":512,"height":12}},{"id":"47dcba35-d361-4e93-b61e-5fb5a12dd116","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":426,"box":{"x":116,"y":614,"width":324,"height":12}},{"id":"88fe063b-0dc0-4a2d-bdd3-4a612bf11961","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in","page_number":426,"box":{"x":441,"y":614,"width":430,"height":12}},{"id":"fbe5923e-77bd-4d0b-bfbd-0368e678ca32","block_type":"box","text":"shares of REITs. REITs possess certain risks which differ from an investment in common stocks.","page_number":426,"box":{"x":116,"y":630,"width":724,"height":12}},{"id":"75817b81-3a6b-45c8-8b58-d0f55c451e63","block_type":"box","text":"REITs are financial vehicles that pool investor’s capital to purchase or finance real estate. REITs may","page_number":426,"box":{"x":117,"y":645,"width":756,"height":12}},{"id":"766918e3-fa0f-4b54-91c7-9d691c078d12","block_type":"box","text":"concentrate their investments in specific geographic areas or in specific property types,","page_number":426,"box":{"x":116,"y":661,"width":646,"height":12}},{"id":"03a310dd-8987-4b51-8f59-6292bcd94095","block_type":"box","text":"i.e.","page_number":426,"box":{"x":768,"y":661,"width":21,"height":9}},{"id":"7a83e7d1-789b-4555-b209-46e029a375b4","block_type":"box","text":", hotels,","page_number":426,"box":{"x":792,"y":661,"width":56,"height":11}},{"id":"3b899be7-d459-4f60-a7cd-2a364a619bc6","block_type":"box","text":"shopping malls, residential complexes and office buildings.","page_number":426,"box":{"x":116,"y":676,"width":435,"height":12}},{"id":"d23ba318-79e5-4825-9ef1-037353f66894","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will","page_number":426,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"b40cb050-58b3-4ee9-a799-abd2bc88a3fc","block_type":"box","text":"bear its proportionate share of the costs of the REITs’ operations. There are three general categories","page_number":426,"box":{"x":117,"y":723,"width":749,"height":12}},{"id":"ec95f972-ad17-46d6-bdf7-beaa9cd91b25","block_type":"box","text":"of REITs: Equity REITs, Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee","page_number":426,"box":{"x":116,"y":738,"width":758,"height":12}},{"id":"56792c35-7eb3-4c8e-a5fa-86f803fd57c3","block_type":"box","text":"ownership or leasehold ownership of real property, which derive most of their income from rents.","page_number":426,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"3d8b54ac-8b38-451f-880d-80e1597593c7","block_type":"box","text":"Mortgage REITs invest mostly in mortgages on real estate, which may secure construction,","page_number":426,"box":{"x":117,"y":769,"width":675,"height":12}},{"id":"93ca47bb-8799-467a-ac15-86c29fb4d33e","block_type":"box","text":"development or long-term loans; the main source of their income is mortgage interest payments.","page_number":426,"box":{"x":116,"y":785,"width":714,"height":12}},{"id":"1467fd66-9f09-45fe-aae6-92c61d2b13ff","block_type":"box","text":"Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":426,"box":{"x":117,"y":800,"width":535,"height":12}},{"id":"76643084-9f86-4592-a882-f6f8f3b4634c","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in","page_number":426,"box":{"x":117,"y":831,"width":749,"height":12}},{"id":"b86da4f8-ba6e-47ce-b8bc-7a7da980c197","block_type":"box","text":"the real estate industry in general. The market value of REIT shares and the ability of the REITs to","page_number":426,"box":{"x":116,"y":847,"width":735,"height":12}},{"id":"0fad93bd-365f-41c2-9bb3-644758fc29da","block_type":"box","text":"distribute income may be adversely affected by several factors, including rising interest rates, changes","page_number":426,"box":{"x":116,"y":862,"width":765,"height":12}},{"id":"4ca3e147-282e-40ec-852a-c9f790c70aa2","block_type":"box","text":"in the national, state and local economic climate and real estate conditions, occupancy and rental","page_number":426,"box":{"x":117,"y":878,"width":727,"height":12}},{"id":"8e0b2b16-347e-487c-8e23-e5655f8c14e3","block_type":"box","text":"II-87","page_number":426,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"2e3f75fd-e17c-4c2b-924c-2494a1c4f8fa","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":426,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8da8ce0a-297f-4a8e-a319-17eca1ea0724","block_type":"box","text":"rales, perceptions of prospective tenants of the safety, convenience and attractiveness of the","page_number":427,"box":{"x":117,"y":87,"width":694,"height":12}},{"id":"537180d1-b493-4293-86a4-7c3e9d328b87","block_type":"box","text":"properties, the ability of the owners to provide adequate management, maintenance and insurance, the","page_number":427,"box":{"x":117,"y":102,"width":770,"height":13}},{"id":"cc317f14-27f4-454e-817c-edd4081ff1f5","block_type":"box","text":"cost of complying with the Americans with Disabilities Act, increased competition from new properties,","page_number":427,"box":{"x":116,"y":118,"width":761,"height":12}},{"id":"3e0329e5-613d-4e9f-b0fe-082515f02999","block_type":"box","text":"the impact of present or future environmental legislation and compliance with environmental laws,","page_number":427,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"1093355e-8a7c-4651-a84b-89bde139a085","block_type":"box","text":"failing to maintain their exemptions from registration under the Investment Company Act, changes in","page_number":427,"box":{"x":116,"y":149,"width":749,"height":12}},{"id":"33af8278-e3c8-4534-b53b-73b8b138bb1e","block_type":"box","text":"real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal","page_number":427,"box":{"x":117,"y":165,"width":733,"height":12}},{"id":"e8976d77-de45-4707-9b40-3c0835c87638","block_type":"box","text":"policies, adverse changes in zoning laws and other factors beyond the control of the issuers of the","page_number":427,"box":{"x":117,"y":180,"width":733,"height":12}},{"id":"6c2e1b41-3ad3-486e-861c-03ab75eb168b","block_type":"box","text":"REITs. To the extent that assets underlying a REIT are concentrated geographically, by property type,","page_number":427,"box":{"x":117,"y":196,"width":762,"height":12}},{"id":"b54959c5-f8bc-47c9-af0c-618e6fac5537","block_type":"box","text":"or in certain other respects, these risks may be heightened.","page_number":427,"box":{"x":116,"y":211,"width":446,"height":12}},{"id":"ee3c3ce3-162e-41dd-854f-148b09901fc9","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or","page_number":427,"box":{"x":117,"y":242,"width":761,"height":12}},{"id":"e498214e-48b2-4b9d-8089-8d943f06e0e4","block_type":"box","text":"return of capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating","page_number":427,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"f78eb53e-538d-4855-951a-6fbd30df7cf3","block_type":"box","text":"companies, to the extent application of the Fund’s investment strategy results in the Fund investing in","page_number":427,"box":{"x":116,"y":273,"width":758,"height":12}},{"id":"d1874827-6115-43ab-bac6-5295f7430d7a","block_type":"box","text":"REIT shares, the percentage of the Fund’s dividend income received from REIT shares will likely","page_number":427,"box":{"x":117,"y":289,"width":722,"height":12}},{"id":"9d0b405e-7fb3-4caa-b5c9-450ec7136832","block_type":"box","text":"exceed the percentage of the Fund’s portfolio which is comprised of REIT shares. Ordinary REIT","page_number":427,"box":{"x":116,"y":304,"width":723,"height":12}},{"id":"83e06ddc-283b-4669-981d-9f1b6a63374d","block_type":"box","text":"dividends received by the Fund and distributed to the Fund’s shareholders will generally be taxable as","page_number":427,"box":{"x":116,"y":320,"width":762,"height":12}},{"id":"4fbcd43d-bc83-4249-9450-c4efd7cd968b","block_type":"box","text":"ordinary income and will not constitute “qualified dividend income.” However, a non-corporate taxpayer","page_number":427,"box":{"x":116,"y":335,"width":768,"height":12}},{"id":"31e59af5-d72b-4be1-81f1-362b4a64f8db","block_type":"box","text":"who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for ordinary","page_number":427,"box":{"x":116,"y":351,"width":757,"height":12}},{"id":"b0816c72-2bd9-4806-83b3-cd66adf24157","block_type":"box","text":"REIT dividends, and a regulated investment company may report dividends as eligible for this","page_number":427,"box":{"x":117,"y":366,"width":698,"height":12}},{"id":"b7261764-2503-4cf5-bbd7-d84d9645fc7f","block_type":"box","text":"deduction to the extent the regulated investment company’s income is derived from ordinary REIT","page_number":427,"box":{"x":116,"y":382,"width":731,"height":12}},{"id":"e00f35e1-a15e-4368-bc0f-4484ec157c13","block_type":"box","text":"dividends (reduced by allocable regulated investment company expenses). A shareholder may treat","page_number":427,"box":{"x":116,"y":397,"width":745,"height":12}},{"id":"fed5d2c3-23c6-4150-924e-115840e20e49","block_type":"box","text":"the dividends as such provided the regulated investment company and the shareholder satisfy","page_number":427,"box":{"x":116,"y":413,"width":704,"height":12}},{"id":"7c74be9e-aab0-4a58-9a97-90065d8291c7","block_type":"box","text":"applicable holding period requirements.","page_number":427,"box":{"x":116,"y":428,"width":298,"height":12}},{"id":"c5f50944-179f-44e7-b1b9-1bd7c9aab222","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may","page_number":427,"box":{"x":117,"y":459,"width":728,"height":12}},{"id":"ddf2f957-ef38-4495-be24-b4d61f1ff2ea","block_type":"box","text":"cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the","page_number":427,"box":{"x":116,"y":475,"width":726,"height":12}},{"id":"57bd5b4e-12a4-4444-9673-f5bae920d764","block_type":"box","text":"market price of the equity securities issued by a REIT. Rising interest rates also generally increase the","page_number":427,"box":{"x":117,"y":490,"width":764,"height":12}},{"id":"684a3f3b-8d2f-4070-a2db-2b6d6a677b09","block_type":"box","text":"costs of obtaining financing, which could cause the value of a Fund’s REIT investments to decline.","page_number":427,"box":{"x":116,"y":506,"width":734,"height":12}},{"id":"dba2c1f1-e009-4a7a-b27a-610792fdc410","block_type":"box","text":"During periods when interest rates are declining, mortgages are often refinanced. Refinancing may","page_number":427,"box":{"x":117,"y":521,"width":738,"height":12}},{"id":"3968b2df-0ded-47d1-8666-95c37bb7e3c0","block_type":"box","text":"reduce the yield on investments in mortgage REITs. In addition, since REITs depend on payment","page_number":427,"box":{"x":117,"y":537,"width":726,"height":12}},{"id":"84e81a98-ac1a-488a-8943-648d47cea32e","block_type":"box","text":"under their mortgage loans and leases to generate cash to make distributions to their shareholders,","page_number":427,"box":{"x":117,"y":552,"width":743,"height":12}},{"id":"942f161d-4cb0-488f-9b31-6c1c5c7a25d2","block_type":"box","text":"investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":427,"box":{"x":117,"y":568,"width":712,"height":12}},{"id":"0bb5cff4-3431-4646-8137-ce645cd37da3","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same","page_number":427,"box":{"x":117,"y":599,"width":741,"height":12}},{"id":"8855f38a-9932-4527-8c9c-acef9c582c95","block_type":"box","text":"risks as investing in other small capitalization companies. REITs may have limited financial resources,","page_number":427,"box":{"x":117,"y":614,"width":753,"height":12}},{"id":"3b3b8687-dc92-4e1c-8778-a969e8276012","block_type":"box","text":"and their securities may trade less frequently and in limited volume and may be subject to more abrupt","page_number":427,"box":{"x":116,"y":630,"width":758,"height":12}},{"id":"2b97e9ce-2b6d-4ed0-9194-9a26fd2a0ed7","block_type":"box","text":"or erratic price movements than larger company securities. Historically, small capitalization stocks, such","page_number":427,"box":{"x":116,"y":645,"width":768,"height":12}},{"id":"c399f4b5-6d08-413b-a3a9-74bdcc8519a3","block_type":"box","text":"as REITs, have been more volatile in price than the larger capitalization stocks such as those included","page_number":427,"box":{"x":116,"y":661,"width":750,"height":12}},{"id":"ef030a43-7aa1-43f3-be61-8e19a01ea610","block_type":"box","text":"in the S&P 500 Index. The management of a REIT may be subject to conflicts of interest with respect to","page_number":427,"box":{"x":117,"y":676,"width":759,"height":12}},{"id":"00ac7f90-d543-4fbe-a689-d97ef0516727","block_type":"box","text":"the operation of the business of the REIT and may be involved in real estate activities competitive with","page_number":427,"box":{"x":116,"y":692,"width":750,"height":12}},{"id":"6accff4e-4533-43e8-b357-5a152c080276","block_type":"box","text":"the REIT. REITs may own properties through joint ventures or in other circumstances in which the REIT","page_number":427,"box":{"x":116,"y":707,"width":761,"height":12}},{"id":"a824f950-ea0a-41e0-85b0-7df0fc4fd247","block_type":"box","text":"may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":427,"box":{"x":117,"y":723,"width":675,"height":12}},{"id":"5a6d01e9-ec73-47ef-be3d-573697aac9ce","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":427,"box":{"x":116,"y":754,"width":287,"height":9}},{"id":"8856d6c2-b39b-41a4-81ae-afa4970565b2","block_type":"box","text":"Securities may decline in value due to factors affecting","page_number":427,"box":{"x":409,"y":754,"width":405,"height":12}},{"id":"0a70c9bd-d3f2-44e3-bea0-b88f9eee9334","block_type":"box","text":"securities markets generally or particular industries represented in the markets. The value of a security","page_number":427,"box":{"x":116,"y":769,"width":762,"height":12}},{"id":"11931110-732b-432e-86c6-015d072f44b6","block_type":"box","text":"may decline due to general market conditions, economic trends or events that are not specifically","page_number":427,"box":{"x":117,"y":785,"width":720,"height":12}},{"id":"49f8e9d9-482d-4e79-8c74-022b98f782ad","block_type":"box","text":"related to a company or to factors that affect a particular industry or industries, or factors that affect a","page_number":427,"box":{"x":117,"y":800,"width":748,"height":12}},{"id":"3a7c9f20-368b-4117-8665-75a5ebf44dbe","block_type":"box","text":"particular issuer or issuers, exchange, country, group of countries, region, market, industry, group of","page_number":427,"box":{"x":117,"y":816,"width":743,"height":12}},{"id":"9032b5bf-e8ba-4642-89a8-2587bc60dbd5","block_type":"box","text":"industries, sector or asset class. The success of a Fund’s activities could be affected by interest rates,","page_number":427,"box":{"x":117,"y":831,"width":761,"height":12}},{"id":"0c77076e-f791-4988-b631-f99e78cf3f3c","block_type":"box","text":"availability of credit, inflation rates, economic uncertainty, changes in laws, trade barriers, economic","page_number":427,"box":{"x":116,"y":847,"width":744,"height":12}},{"id":"00cb1088-7231-433e-ba4a-ae7cb57761eb","block_type":"box","text":"sanctions, currency exchange controls, and local, regional or global events such as war, acts of","page_number":427,"box":{"x":116,"y":862,"width":714,"height":12}},{"id":"e55bbff5-6409-44e7-a88c-e2a6564eba1d","block_type":"box","text":"terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":427,"box":{"x":116,"y":878,"width":744,"height":12}},{"id":"b10d3a96-983a-440c-9573-e96823fcb080","block_type":"box","text":"II-88","page_number":427,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"50fc129e-f15b-4f6a-874e-03c249e85255","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":427,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bc0f9a4f-db4b-46ef-9c6b-b5019645e88d","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments.","page_number":428,"box":{"x":117,"y":87,"width":730,"height":12}},{"id":"8e17d40d-1535-44f8-9dd4-8edf4723d7cc","block_type":"box","text":"During a general economic downturn in the securities markets, multiple asset classes may be","page_number":428,"box":{"x":117,"y":103,"width":698,"height":12}},{"id":"76ade029-76c2-4dfc-928f-72c59b2c6be9","block_type":"box","text":"negatively affected. These factors may affect the level and volatility of securities prices and the liquidity","page_number":428,"box":{"x":117,"y":118,"width":768,"height":12}},{"id":"d0465102-c689-4de2-bdd4-05aedf9fbc5a","block_type":"box","text":"of a Fund’s investments, which could impair the Fund’s profitability or result in losses. A Fund may","page_number":428,"box":{"x":116,"y":134,"width":734,"height":12}},{"id":"d9a02cfe-19b0-4608-a5fb-43dc1af61d09","block_type":"box","text":"maintain substantial trading positions that can be adversely affected by the level of volatility in the","page_number":428,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"c865d96d-4e98-4e26-a385-ba13de09c3a0","block_type":"box","text":"financial markets; the larger the positions, the greater the potential for loss. Unpredictable or unstable","page_number":428,"box":{"x":116,"y":165,"width":758,"height":12}},{"id":"b701d145-5c59-4004-b1fe-5a7575e0f508","block_type":"box","text":"market conditions may result in reduced opportunities to find suitable investments to deploy capital or","page_number":428,"box":{"x":117,"y":180,"width":756,"height":12}},{"id":"6c5267a4-af2e-4d83-b00c-d934069ac00c","block_type":"box","text":"make it more difficult to exit and realize value","page_number":428,"box":{"x":117,"y":196,"width":339,"height":9}},{"id":"160ee812-7c71-4f2e-bf0b-212465033ea1","block_type":"box","text":"from a Fund’s existing investments. It is important to","page_number":428,"box":{"x":456,"y":196,"width":394,"height":12}},{"id":"73ce714d-5d11-4bf3-8491-3c0ae2bd36f9","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions","page_number":428,"box":{"x":117,"y":211,"width":754,"height":12}},{"id":"8441e7f8-c867-4992-ae2f-7b6d5bc691b5","block_type":"box","text":"and there can be no assurance that a Fund will not suffer material adverse effects from broad and","page_number":428,"box":{"x":116,"y":227,"width":732,"height":9}},{"id":"9e7ef7ec-4c7c-4aea-8dcd-6acb8bb122f6","block_type":"box","text":"rapid changes in market conditions.","page_number":428,"box":{"x":117,"y":242,"width":268,"height":12}},{"id":"3fa6fde4-ce9e-4261-944a-586dd366ae1a","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes","page_number":428,"box":{"x":117,"y":273,"width":759,"height":12}},{"id":"00bc1ecc-7989-4bc4-ada7-e005a7c85851","block_type":"box","text":"limited to a particular sector or a geography, can occur. Some countries, including the United States,","page_number":428,"box":{"x":117,"y":289,"width":750,"height":12}},{"id":"185f2b77-8a88-4cf7-ac8a-72810ea4624f","block_type":"box","text":"have adopted and/or are considering the adoption of more protectionist trade policies, a move away","page_number":428,"box":{"x":117,"y":304,"width":744,"height":12}},{"id":"03cf5a41-0cdd-474a-8c29-4330856f3237","block_type":"box","text":"from the tighter financial industry regulations that followed the financial crisis of 2008, and/or","page_number":428,"box":{"x":116,"y":320,"width":689,"height":12}},{"id":"b5cf563f-b789-416d-9161-1cb2fba5d12d","block_type":"box","text":"substantially reducing corporate taxes. The exact shape of these policies is still being considered, but","page_number":428,"box":{"x":116,"y":335,"width":757,"height":12}},{"id":"5c42722e-f73c-4f5c-9c5b-a8d66a60c1d1","block_type":"box","text":"the equity and debt markets may react strongly to expectations of change, which could increase","page_number":428,"box":{"x":116,"y":351,"width":717,"height":12}},{"id":"7cc99b56-16aa-4132-a99d-d13367691c80","block_type":"box","text":"volatility, especially if the market’s expectations are not borne out. A rise in protectionist trade policies,","page_number":428,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"41057e55-0653-40aa-b8b3-1abb8bdf2ca1","block_type":"box","text":"and the possibility of changes to some international trade agreements, could affect the economies of","page_number":428,"box":{"x":116,"y":382,"width":751,"height":12}},{"id":"cffbb4c5-06ab-4785-a9f3-8748f9d33b43","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":428,"box":{"x":117,"y":397,"width":760,"height":12}},{"id":"13a60e93-277c-44ff-8fd7-6b90e9d17022","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies","page_number":428,"box":{"x":116,"y":413,"width":748,"height":12}},{"id":"e3b11d1a-b57c-4791-936e-2436130fd5d5","block_type":"box","text":"and markets generally. Economies and financial markets throughout the world are increasingly","page_number":428,"box":{"x":116,"y":428,"width":707,"height":12}},{"id":"b2a51521-36c2-49ec-ba15-3f23207cc557","block_type":"box","text":"interconnected. As a result, whether or not a Fund invests in securities of issuers located in or with","page_number":428,"box":{"x":117,"y":444,"width":735,"height":11}},{"id":"86e9d53b-52b2-40c7-82a1-38a2784ddaec","block_type":"box","text":"significant exposure to countries experiencing economic, political and/or financial difficulties, the value","page_number":428,"box":{"x":116,"y":459,"width":762,"height":12}},{"id":"727e15b2-878c-41e4-9a98-0716a2be9f8d","block_type":"box","text":"and liquidity of the Fund’s investments may be negatively affected by such events.","page_number":428,"box":{"x":116,"y":475,"width":616,"height":12}},{"id":"1e14dedc-1a94-4971-8556-8b3ad2edb9bf","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments","page_number":428,"box":{"x":117,"y":506,"width":754,"height":12}},{"id":"6ca4d323-76cb-40a3-9c92-605b5ae2e274","block_type":"box","text":"in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future","page_number":428,"box":{"x":117,"y":521,"width":742,"height":12}},{"id":"d2cdd193-d2bc-4075-aa67-e0d8697450bd","block_type":"box","text":"legislation or regulation or other governmental actions could limit or preclude the Fund’s abilities to","page_number":428,"box":{"x":117,"y":537,"width":727,"height":12}},{"id":"f371ac63-d9ea-4e48-8ea5-c8873324dcc6","block_type":"box","text":"achieve its investment objectives or otherwise adversely impact an investment in the Fund. Recent","page_number":428,"box":{"x":116,"y":552,"width":730,"height":12}},{"id":"ae6629f7-4a57-457c-948a-658d0acd4147","block_type":"box","text":"policy initiatives undertaken by the U.S. government have the potential to impact international relations,","page_number":428,"box":{"x":117,"y":568,"width":763,"height":12}},{"id":"b167652d-17cd-498e-9541-c6d57e9979bd","block_type":"box","text":"trade agreements and the overall regulatory environment in ways that could create uncertainty and","page_number":428,"box":{"x":116,"y":583,"width":730,"height":12}},{"id":"c9b22027-4cb2-4a6d-91d3-36bdd49f9234","block_type":"box","text":"instability in domestic and global markets, and could adversely affect the investment performance of the","page_number":428,"box":{"x":117,"y":599,"width":766,"height":12}},{"id":"30d044cf-d6de-4708-abe1-182bf08a55eb","block_type":"box","text":"Fund. In particular, actions taken by the U.S. government in respect of international trade relations could","page_number":428,"box":{"x":117,"y":614,"width":770,"height":12}},{"id":"ace74721-cdbf-4034-a4b9-9c36e1a1ab9c","block_type":"box","text":"lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced foreign","page_number":428,"box":{"x":117,"y":630,"width":742,"height":12}},{"id":"f8453311-be57-4198-b476-f9344e3b48f6","block_type":"box","text":"investment, and instability in regions where the Fund invests. Political and diplomatic events within the","page_number":428,"box":{"x":117,"y":645,"width":755,"height":12}},{"id":"b0971808-c44f-4940-830e-388682293716","block_type":"box","text":"United States, including a contentious domestic political environment, changes in political party control","page_number":428,"box":{"x":117,"y":661,"width":750,"height":12}},{"id":"1b82066e-e970-4557-ba22-ddaa8d737904","block_type":"box","text":"of one or more branches of the U.S. Government, the U.S. Government’s inability at times to agree on a","page_number":428,"box":{"x":116,"y":676,"width":764,"height":12}},{"id":"65cea8bf-e374-4e02-8ef8-f0668d4aa024","block_type":"box","text":"long-term budget and deficit reduction plan, the threat of a U.S. Government shutdown, and","page_number":428,"box":{"x":117,"y":692,"width":672,"height":12}},{"id":"de33995a-d386-48d6-8654-28849de348be","block_type":"box","text":"disagreements over, or threats not to increase, the U.S. Government’s borrowing limit (or “debt ceiling”),","page_number":428,"box":{"x":116,"y":707,"width":763,"height":12}},{"id":"f4b0e033-8ed8-4e8c-9e62-20385c5a1b6b","block_type":"box","text":"as well as political and diplomatic events abroad, may affect investor and consumer confidence and","page_number":428,"box":{"x":116,"y":723,"width":731,"height":12}},{"id":"73eb4551-7058-4460-80cb-ad213b3b50d8","block_type":"box","text":"may adversely impact financial markets and the broader economy, perhaps suddenly and to a","page_number":428,"box":{"x":117,"y":738,"width":689,"height":12}},{"id":"6770f103-6742-41f4-accf-84886e742b10","block_type":"box","text":"significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns about","page_number":428,"box":{"x":116,"y":754,"width":754,"height":12}},{"id":"37dbae8e-01f0-4b5a-b845-1f526a28c804","block_type":"box","text":"the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and","page_number":428,"box":{"x":116,"y":769,"width":764,"height":12}},{"id":"4ef58fd9-c829-46d6-aff6-db79b29c6de7","block_type":"box","text":"global economies. For example, concerns about the U.S. Government’s credit quality may cause","page_number":428,"box":{"x":116,"y":785,"width":710,"height":12}},{"id":"af072649-1480-4c7b-a71b-8ab37589047b","block_type":"box","text":"increased volatility in the stock and bond markets, higher interest rates, reduced prices and liquidity of","page_number":428,"box":{"x":117,"y":800,"width":748,"height":12}},{"id":"f291fd7d-cc94-4808-8539-65f5501a6100","block_type":"box","text":"U.S. Treasury securities, and/or increased costs of various kinds of debt. Moreover, although the U.S.","page_number":428,"box":{"x":117,"y":816,"width":745,"height":12}},{"id":"61aa5d5b-a6d0-474b-b6e2-592d6494927c","block_type":"box","text":"Government has honored its credit obligations, there remains a possibility that the United States could","page_number":428,"box":{"x":117,"y":831,"width":754,"height":12}},{"id":"6db7a2a1-7373-4e2a-be5d-56478c6e4225","block_type":"box","text":"default on its obligations. The consequences of such an unprecedented event are impossible to predict,","page_number":428,"box":{"x":116,"y":847,"width":765,"height":12}},{"id":"a332e59c-6e00-4250-956a-de2ab40f88e0","block_type":"box","text":"but it is likely that a default by the United States would be highly disruptive to the U.S. and global","page_number":428,"box":{"x":117,"y":862,"width":714,"height":12}},{"id":"41597851-41f4-4e6d-9553-a344d1ffd4fc","block_type":"box","text":"securities markets and could significantly impair the value of the Fund’s investments.","page_number":428,"box":{"x":116,"y":878,"width":627,"height":12}},{"id":"4d1cada9-569d-4437-832c-c17e612686c1","block_type":"box","text":"II-89","page_number":428,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"640a9dae-3c66-424a-a018-ffc66aa3a386","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":428,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e904e27c-aa35-42c7-8ca9-70ae5bd41544","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures,","page_number":429,"box":{"x":116,"y":87,"width":761,"height":12}},{"id":"b6547e66-c6ab-4d72-86bb-00cfe17d8b07","block_type":"box","text":"declines in global financial markets, higher default rates, supply chain disruptions, and a substantial","page_number":429,"box":{"x":116,"y":102,"width":743,"height":13}},{"id":"17fcff7f-dff5-4e19-b481-7652bdd13d09","block_type":"box","text":"economic downturn in economies throughout the world. The impact of this coronavirus, and other","page_number":429,"box":{"x":116,"y":118,"width":727,"height":12}},{"id":"38a65462-ce9f-4683-b29b-48a71a885e37","block_type":"box","text":"epidemics and pandemics that may arise in the future, could affect the economies of many nations,","page_number":429,"box":{"x":116,"y":134,"width":741,"height":12}},{"id":"6459c2a5-f81c-4d6c-91c4-33a8b97bdb80","block_type":"box","text":"individual companies and the market in general in ways that cannot necessarily be foreseen at the","page_number":429,"box":{"x":117,"y":149,"width":733,"height":12}},{"id":"4893989d-2ccd-4068-9c9c-66d33e060e8c","block_type":"box","text":"present time. These health crises may be short term or long term, and may exacerbate other pre","page_number":429,"box":{"x":117,"y":165,"width":721,"height":12}},{"id":"0c6f552f-2185-4e33-9a1b-f59c8454229a","block_type":"box","text":"existing political, social and economic risks, disrupt normal market conditions and operations, and","page_number":429,"box":{"x":116,"y":180,"width":729,"height":12}},{"id":"2f98a49f-0a96-4edc-b9c6-9374c721454c","block_type":"box","text":"negatively impact performance. In addition, the impact of infectious diseases in emerging developing or","page_number":429,"box":{"x":117,"y":196,"width":771,"height":12}},{"id":"d9302c64-cf68-4604-a13f-7e5c37c8f420","block_type":"box","text":"emerging market countries may be greater due to less established health care systems.","page_number":429,"box":{"x":116,"y":211,"width":657,"height":12}},{"id":"f1013b36-04c7-4801-b1da-ad510a510a46","block_type":"box","text":"Legal and Regulatory Risks","page_number":429,"box":{"x":116,"y":242,"width":205,"height":12}},{"id":"44b5dd45-4ff5-4895-8ddd-41006e659c70","block_type":"box","text":". The Manager is part of a larger firm with multiple business lines active in","page_number":429,"box":{"x":323,"y":242,"width":550,"height":12}},{"id":"1d833a51-bcf5-4630-b452-b60cddbb1a12","block_type":"box","text":"multiple jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some","page_number":429,"box":{"x":117,"y":258,"width":753,"height":12}},{"id":"96a81186-ebb2-4846-b977-954cb754e1d6","block_type":"box","text":"of which are new and evolving. As a result, the Funds and the Manager and its affiliates are subject to","page_number":429,"box":{"x":116,"y":273,"width":761,"height":12}},{"id":"432cb5d2-065b-44c7-bfa7-f3f9f2216a25","block_type":"box","text":"extensive and sophisticated legal, tax and regulatory risks, including changing laws and regulations,","page_number":429,"box":{"x":116,"y":289,"width":746,"height":12}},{"id":"4fba4a97-510b-4b8c-a7b4-cca06b8ed1c5","block_type":"box","text":"developing interpretations of such laws and regulations, as well as existing laws, and increased","page_number":429,"box":{"x":116,"y":304,"width":712,"height":12}},{"id":"5840603b-69c5-4b26-ab96-85acdb09ab48","block_type":"box","text":"scrutiny by regulators and law enforcement authorities. Unexpected economic, political, regulatory and","page_number":429,"box":{"x":116,"y":320,"width":766,"height":12}},{"id":"8d2c5a9f-c676-472e-bf99-0e86c7168684","block_type":"box","text":"diplomatic events within the United States and abroad can trigger new and complex regulations that","page_number":429,"box":{"x":116,"y":335,"width":745,"height":12}},{"id":"1beb45f2-dd6d-46e0-9fe2-662e441f5cc0","block_type":"box","text":"the Manager and/or the Funds may need to comply with. The implementation of changes to comply","page_number":429,"box":{"x":116,"y":351,"width":742,"height":12}},{"id":"6e96ac29-07c9-4cec-8146-8904bf3b7229","block_type":"box","text":"with current and/or new regulations applicable to the Funds and/or the Manager could have a material","page_number":429,"box":{"x":116,"y":366,"width":761,"height":12}},{"id":"3fe7f36e-8ecd-4557-a44a-73089d2d563f","block_type":"box","text":"adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit","page_number":429,"box":{"x":116,"y":382,"width":712,"height":12}},{"id":"a3820286-c07f-4d56-ad75-888481d84f18","block_type":"box","text":"margins, reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":429,"box":{"x":117,"y":397,"width":762,"height":12}},{"id":"b922059e-1e0a-49c8-9b37-305b9f67b1c5","block_type":"box","text":"Tariff and Trade Policy Risks","page_number":429,"box":{"x":118,"y":428,"width":213,"height":12}},{"id":"c0882000-d096-4182-86ab-9f432e02de51","block_type":"box","text":".","page_number":429,"box":{"x":331,"y":436,"width":3,"height":1}},{"id":"cb021025-bf2f-4c43-8939-f9f9bfd952cf","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist","page_number":429,"box":{"x":335,"y":428,"width":518,"height":12}},{"id":"ccd1aebf-7574-4f64-9ab3-41013e749cac","block_type":"box","text":"trade policies. The U.S. government recently altered its approach to international trade policy, resulting","page_number":429,"box":{"x":116,"y":444,"width":768,"height":12}},{"id":"0ea1cc7d-6af2-4a66-8291-1a0c7cec07cd","block_type":"box","text":"in significant impacts on international trade relations, certain tax and immigration policies, and other","page_number":429,"box":{"x":117,"y":459,"width":742,"height":12}},{"id":"d7d8aa0f-bfde-4182-8635-dd5c6b603913","block_type":"box","text":"aspects of the national and international political and financial landscape. The rise in protectionist trade","page_number":429,"box":{"x":116,"y":475,"width":769,"height":12}},{"id":"9bed7a21-93a4-4452-bbb2-ab594c7a2a63","block_type":"box","text":"policies, slowing economic growth, changes to some major international trade agreements, risks","page_number":429,"box":{"x":117,"y":490,"width":718,"height":12}},{"id":"3efd86cf-afb9-45c0-83f6-527ab8d3989e","block_type":"box","text":"associated with trade agreements between the U.S. and the European Union, and the risks associated","page_number":429,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"6fdb6c65-061a-41ed-82d2-41977d7ee081","block_type":"box","text":"with trade negotiations between the U.S. and China, could affect the economies of many nations in","page_number":429,"box":{"x":116,"y":521,"width":739,"height":12}},{"id":"d3e66913-3f72-4a24-b4e4-b652caa44518","block_type":"box","text":"ways that cannot necessarily be foreseen at the present time.","page_number":429,"box":{"x":116,"y":537,"width":462,"height":12}},{"id":"6c20ce5d-7eb7-401b-849c-1b332ff0c561","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together","page_number":429,"box":{"x":117,"y":568,"width":759,"height":12}},{"id":"18eb1c75-5237-4d1f-aba8-68ec7d11f3f0","block_type":"box","text":"with any future downturns in the global economy resulting therefrom, could adversely affect the","page_number":429,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"0d019a67-b337-4b2c-9f4b-e4320578a06f","block_type":"box","text":"financial performance of a Fund and its investments. Trade policy may be an ongoing source of","page_number":429,"box":{"x":116,"y":599,"width":713,"height":12}},{"id":"09917e52-c565-44fb-bdce-d89b6ee47894","block_type":"box","text":"instability, potentially resulting in significant currency fluctuations and/or having other adverse effects","page_number":429,"box":{"x":117,"y":614,"width":751,"height":12}},{"id":"b04f1b97-3ee9-458b-8a29-721c7c91d209","block_type":"box","text":"on international markets, international trade agreements, and/or other existing cross-border","page_number":429,"box":{"x":116,"y":630,"width":683,"height":12}},{"id":"89085f3f-7cc4-41a7-ba22-dc78abdf29c4","block_type":"box","text":"cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or otherwise). To the extent","page_number":429,"box":{"x":116,"y":645,"width":771,"height":12}},{"id":"bc7b4ddd-60e3-4e39-af16-a6fce08ff936","block_type":"box","text":"trade disputes escalate globally, there could be additional significant impacts on the sectors or","page_number":429,"box":{"x":116,"y":661,"width":700,"height":12}},{"id":"b055e585-02fa-48ff-9de0-a6de880889eb","block_type":"box","text":"industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":429,"box":{"x":117,"y":676,"width":703,"height":12}},{"id":"d2713b8d-dc41-4846-a14d-fd90b26cc3bd","block_type":"box","text":"Geographic Risks","page_number":429,"box":{"x":117,"y":707,"width":131,"height":12}},{"id":"caa255ce-bbe0-4375-a375-26a8786753de","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise","page_number":429,"box":{"x":250,"y":707,"width":616,"height":12}},{"id":"9b36f7b8-50c4-485e-82b6-9720adc0ec7c","block_type":"box","text":"connected to, parts of the world affected by natural disasters such as severe heat, earthquakes,","page_number":429,"box":{"x":116,"y":723,"width":711,"height":12}},{"id":"04235dfb-e33d-49ad-8d7e-c977489f4d12","block_type":"box","text":"tornadoes, volcanic eruptions, wildfires, droughts, floods, hurricanes or tsunamis, and are economically","page_number":429,"box":{"x":116,"y":738,"width":766,"height":12}},{"id":"e929aef9-e55b-4b9c-9cc3-1a9e154991b8","block_type":"box","text":"sensitive to environmental events. In addition, issuers may be impacted by security concerns with","page_number":429,"box":{"x":116,"y":754,"width":723,"height":12}},{"id":"62cd4585-5205-4f45-8e67-eff854efe3ca","block_type":"box","text":"respect to a country or region, such as war and other types of conflict, terrorism, strained international","page_number":429,"box":{"x":117,"y":769,"width":754,"height":12}},{"id":"d0496b55-a186-42d9-a995-f1e43548df74","block_type":"box","text":"relations and territorial disputes. Any of these events may adversely affect the issuers, markets and","page_number":429,"box":{"x":117,"y":785,"width":736,"height":12}},{"id":"289d01fd-4bb9-4d7c-be60-41c297262b39","block_type":"box","text":"economies to which a Fund is exposed, which may adversely affect the value of the Fund.","page_number":429,"box":{"x":116,"y":800,"width":667,"height":12}},{"id":"88f798ec-395e-4d07-a9f9-b2b015b345d4","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":429,"box":{"x":116,"y":831,"width":275,"height":12}},{"id":"241ff755-f8ce-427a-8c68-cf4a1b264842","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically","page_number":429,"box":{"x":393,"y":831,"width":469,"height":12}},{"id":"3112bd83-bd18-4d9f-854c-3ca5a0e48b61","block_type":"box","text":"been used extensively in the U.S. and globally as a “benchmark” or “reference rate” for various","page_number":429,"box":{"x":117,"y":847,"width":707,"height":12}},{"id":"3c9bd83f-3fb9-4e59-9533-d4ebf8aa9558","block_type":"box","text":"commercial and financial contracts, including corporate and municipal bonds, bank loans, asset","page_number":429,"box":{"x":116,"y":862,"width":714,"height":12}},{"id":"d8192a9f-5c52-4ae2-b584-cf670d5175b4","block_type":"box","text":"backed and mortgage-related securities, interest rate swaps and other derivatives. Instruments in","page_number":429,"box":{"x":117,"y":878,"width":726,"height":12}},{"id":"9921eff8-c380-47e9-ad55-ac6ee2607663","block_type":"box","text":"II-90","page_number":429,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"6262bf1b-3ffb-4cbe-91bf-36cae56aac11","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":429,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4baaaeac-50a9-4b5a-9bde-7aa96161f429","block_type":"box","text":"which a Fund may have historically paid interest at floating rates based on LIBOR or may have been","page_number":430,"box":{"x":116,"y":87,"width":750,"height":12}},{"id":"fdd5abf1-194a-48fb-8f80-dd1ae0275822","block_type":"box","text":"subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a","page_number":430,"box":{"x":116,"y":102,"width":742,"height":13}},{"id":"f1aae7d1-44b1-4c93-a305-a96d4f2bc6c6","block_type":"box","text":"Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":430,"box":{"x":117,"y":118,"width":709,"height":12}},{"id":"998c8f6e-c7d7-4a15-b3da-bdaabbd823de","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market participants as a","page_number":430,"box":{"x":116,"y":134,"width":754,"height":12}},{"id":"c3d2f1b7-44f4-4016-b101-e8a276b9cd8a","block_type":"box","text":"result of benchmark reforms, LIBOR was last published on a representative basis at the end of June","page_number":430,"box":{"x":117,"y":149,"width":748,"height":12}},{"id":"d67301e4-7d3b-414d-a661-0de1d9447ba2","block_type":"box","text":"2023. Alternative reference rates to LIBOR have been established in most major currencies and","page_number":430,"box":{"x":116,"y":165,"width":717,"height":12}},{"id":"d1ffa8a7-8408-49d3-a69b-8a07a17797ed","block_type":"box","text":"markets in these alternative rates are continuing to develop (","page_number":430,"box":{"x":117,"y":180,"width":449,"height":12}},{"id":"4f2eb08e-d722-4b60-a05c-9b4328a6bf5c","block_type":"box","text":"e.g.","page_number":430,"box":{"x":568,"y":183,"width":25,"height":9}},{"id":"f44fd60b-77fe-4765-b6e1-dac674133672","block_type":"box","text":", the Secured Overnight Financing","page_number":430,"box":{"x":596,"y":180,"width":259,"height":12}},{"id":"9bd40d70-97b8-438d-b93f-85ce68610031","block_type":"box","text":"Rate (“SOFR”) for USD-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual","page_number":430,"box":{"x":117,"y":196,"width":771,"height":12}},{"id":"d89eb76a-bc7d-4ed4-b48e-851e04930bc4","block_type":"box","text":"risks associated with the transition may remain that may impact markets or particular investments and,","page_number":430,"box":{"x":117,"y":211,"width":765,"height":12}},{"id":"a44f361b-4ffa-43fd-b3d5-36257b9d0b4c","block_type":"box","text":"as such, the full impact of the transition on the Funds or the financial instruments in which the Funds","page_number":430,"box":{"x":116,"y":227,"width":749,"height":11}},{"id":"fc9fe5d6-3649-42f1-8442-39f43e0f5918","block_type":"box","text":"invest cannot yet be fully determined.","page_number":430,"box":{"x":117,"y":242,"width":281,"height":12}},{"id":"b1f46af1-429d-43c0-b2c3-a7cf8519a8b2","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that","page_number":430,"box":{"x":116,"y":273,"width":757,"height":12}},{"id":"e3e33d25-585c-45cf-90f7-64a44797ff16","block_type":"box","text":"are collateralized by U.S. Treasury securities . SOFR is calculated based on transaction-level repo","page_number":430,"box":{"x":116,"y":289,"width":736,"height":12}},{"id":"17b5ab3c-35cb-4786-841f-6696425868a8","block_type":"box","text":"data collected from various sources. For each trading day, SOFR is calculated as a volume-weighted","page_number":430,"box":{"x":116,"y":304,"width":755,"height":12}},{"id":"4d2f3c98-4859-48e3-acdd-7570661f373d","block_type":"box","text":"median rate derived from such data. Because SOFR is a financing rate based on overnight secured","page_number":430,"box":{"x":117,"y":320,"width":744,"height":12}},{"id":"4c668a36-751e-48ec-930e-00af1ca0dede","block_type":"box","text":"funding transactions, it differs fundamentally from LIBOR. LIBOR is intended to be an unsecured rate","page_number":430,"box":{"x":116,"y":335,"width":755,"height":12}},{"id":"ff9d07b8-f7a2-4469-97fe-2913ee11f9e0","block_type":"box","text":"that represents interbank funding costs for different short-term maturities or tenors. It is a forward","page_number":430,"box":{"x":116,"y":351,"width":726,"height":12}},{"id":"6a0ddf95-8b2c-48dd-9cc7-e601a524800c","block_type":"box","text":"looking rate reflecting expectations regarding interest rates for the applicable tenor. Thus, LIBOR is","page_number":430,"box":{"x":117,"y":366,"width":740,"height":12}},{"id":"07277821-7297-422c-8a62-d93acdc0978d","block_type":"box","text":"intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk. In","page_number":430,"box":{"x":117,"y":382,"width":706,"height":12}},{"id":"f0b5e09d-af3a-49c7-99b2-81f862b60212","block_type":"box","text":"contrast, SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as","page_number":430,"box":{"x":116,"y":397,"width":696,"height":12}},{"id":"2bdf104e-be7c-4a05-b0fc-ade41d670d44","block_type":"box","text":"collateral. Thus, it is largely insensitive to credit-risk considerations and to short-term interest rate risks.","page_number":430,"box":{"x":116,"y":413,"width":771,"height":12}},{"id":"23a09c57-9b80-43ff-b481-aa6fe45febc7","block_type":"box","text":"SOFR is a transaction-based rate, and it has been more volatile than other benchmark or market rates,","page_number":430,"box":{"x":116,"y":428,"width":770,"height":11}},{"id":"54a6d964-98af-4662-a263-fdd8ebcc5846","block_type":"box","text":"such as three-month LIBOR, during certain periods. For these reasons, among others, there is no","page_number":430,"box":{"x":116,"y":444,"width":730,"height":12}},{"id":"c53b6bbf-cea0-43ab-84da-d80de1fa72a0","block_type":"box","text":"assurance that SOFR, or rates derived from SOFR, will perform in the same or similar way as LIBOR","page_number":430,"box":{"x":116,"y":459,"width":755,"height":12}},{"id":"0ee8a73c-1fbd-4b94-bc0f-ae644671bd3c","block_type":"box","text":"would have performed at any time, and there is no assurance that SOFR-based rates will be a suitable","page_number":430,"box":{"x":116,"y":475,"width":767,"height":12}},{"id":"e30c2f7d-e349-4371-a687-7dc1d2548762","block_type":"box","text":"substitute for LIBOR. SOFR has a relatively limited history, having been first published in April 2018.","page_number":430,"box":{"x":116,"y":490,"width":749,"height":12}},{"id":"543cbdd7-2cb4-4e0f-ab4d-e9c23abdcd60","block_type":"box","text":"The future performance of SOFR, and SOFR-based reference rates, cannot be predicted based on","page_number":430,"box":{"x":116,"y":506,"width":740,"height":12}},{"id":"83e7573c-4491-4208-ac26-9d8cfbb20761","block_type":"box","text":"SOFR’s history or otherwise. Levels of SOFR in the future may bear little or no relation to historical","page_number":430,"box":{"x":116,"y":521,"width":738,"height":12}},{"id":"762e0537-9624-4dda-aea9-b568c355b7ba","block_type":"box","text":"levels of SOFR, LIBOR or other rates. There can also be no assurance that SOFR will not be","page_number":430,"box":{"x":117,"y":537,"width":695,"height":11}},{"id":"c691acae-9fe5-438b-b5dc-5f1cccd2d3b9","block_type":"box","text":"discontinued or fundamentally altered in a manner that is materially adverse to the interests of the","page_number":430,"box":{"x":116,"y":552,"width":731,"height":12}},{"id":"17004ba1-df93-4357-a8b6-9b147b6c490a","block_type":"box","text":"Fund.","page_number":430,"box":{"x":117,"y":568,"width":46,"height":9}},{"id":"f39e9f6d-cf4f-4699-8192-ab38323fa163","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have","page_number":430,"box":{"x":117,"y":599,"width":768,"height":12}},{"id":"eda07caa-6803-4ea6-ad8f-32ed8148699b","block_type":"box","text":"been the subject of ongoing national and international regulatory reform, including under the European","page_number":430,"box":{"x":117,"y":614,"width":765,"height":12}},{"id":"dd5c44b7-89fc-490f-a279-a2472e74d16c","block_type":"box","text":"Union (“EU”) regulation on indices used as benchmarks in financial instruments and financial contracts","page_number":430,"box":{"x":117,"y":630,"width":765,"height":12}},{"id":"87c13f46-8a8b-4136-a067-69d9f1b96766","block_type":"box","text":"(known as the “Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United","page_number":430,"box":{"x":117,"y":645,"width":754,"height":12}},{"id":"58561f3b-6718-46f6-bbbb-08db594dedb0","block_type":"box","text":"Kingdom (“UK”) law by virtue of the EU (Withdrawal) Act 2018 (as amended), subject to amendments","page_number":430,"box":{"x":117,"y":661,"width":750,"height":12}},{"id":"c4adc294-bf6d-46ff-9dcf-fd4e542222f6","block_type":"box","text":"made by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (SI","page_number":430,"box":{"x":117,"y":676,"width":727,"height":12}},{"id":"b9985f4e-2f14-49f8-a949-e428a2acad63","block_type":"box","text":"2019/657) and other statutory instruments. Following the implementation of these reforms, the manner","page_number":430,"box":{"x":116,"y":692,"width":761,"height":12}},{"id":"32237214-0347-491f-b5ee-37e2ec2c6ca8","block_type":"box","text":"of administration of benchmarks has changed and may further change in the future, with the result that","page_number":430,"box":{"x":116,"y":707,"width":762,"height":12}},{"id":"c0d02573-50f7-450c-b803-25572ab1a40a","block_type":"box","text":"relevant benchmarks may perform differently than in the past, the use of benchmarks that are not","page_number":430,"box":{"x":117,"y":723,"width":721,"height":12}},{"id":"55665a72-6208-403f-95b2-a5b21d62408d","block_type":"box","text":"compliant with the new standards by certain supervised entities may be restricted, and certain","page_number":430,"box":{"x":116,"y":738,"width":696,"height":12}},{"id":"84262885-35ec-4cec-97b5-523860540310","block_type":"box","text":"benchmarks may be eliminated entirely. Such changes could cause increased market volatility and","page_number":430,"box":{"x":117,"y":754,"width":731,"height":12}},{"id":"8afba7c2-a25f-49c0-8689-4c0ebedd6b86","block_type":"box","text":"disruptions in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally,","page_number":430,"box":{"x":116,"y":769,"width":743,"height":12}},{"id":"769b5ba5-4e91-4c17-b6d9-b98ec4b49451","block_type":"box","text":"there could be other consequences which cannot be predicted.","page_number":430,"box":{"x":116,"y":785,"width":466,"height":12}},{"id":"0ca3973e-d7b0-4954-aec9-a774bc776212","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":430,"box":{"x":116,"y":816,"width":456,"height":12}},{"id":"31ec17ea-72b6-4dfe-834d-96a562d1d41a","block_type":"box","text":"Under repurchase agreements and","page_number":430,"box":{"x":578,"y":816,"width":249,"height":12}},{"id":"fae0ecf8-1933-4fd9-be14-770e897c0a53","block_type":"box","text":"purchase and sale contracts, the other party agrees","page_number":430,"box":{"x":117,"y":831,"width":366,"height":12}},{"id":"8a23860a-6f00-4630-97eb-ce50a76b4462","block_type":"box","text":", upon entering into the contract with a Fund, to","page_number":430,"box":{"x":485,"y":831,"width":339,"height":12}},{"id":"594d6517-1fb3-407b-9111-41aefdcafb67","block_type":"box","text":"repurchase a security sold to the Fund at a mutua","page_number":430,"box":{"x":117,"y":847,"width":353,"height":12}},{"id":"b4cb40c6-30de-40ab-bee5-f70e3c38099c","block_type":"box","text":"lly agreed-upon time and price in a specified currency,","page_number":430,"box":{"x":471,"y":847,"width":388,"height":12}},{"id":"6c74af09-c136-4913-b029-22c0af22f9f2","block_type":"box","text":"thereby determining the yield dur","page_number":430,"box":{"x":116,"y":862,"width":234,"height":12}},{"id":"c2da77d2-c661-45b6-9f9c-470e1f0c5eba","block_type":"box","text":"ing the term of the agreement.","page_number":430,"box":{"x":351,"y":862,"width":219,"height":12}},{"id":"da51976e-ea7f-4b01-92cb-171df0e4465e","block_type":"box","text":"II-91","page_number":430,"box":{"x":484,"y":909,"width":29,"height":9}},{"id":"04782333-599d-443a-b789-3dcc1789e9ae","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":430,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"71e06cfd-49a7-4617-8f08-b3c53df405a2","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements","page_number":431,"box":{"x":116,"y":87,"width":751,"height":12}},{"id":"58f75a2c-75fc-46bc-9369-6a6856a71bd2","block_type":"box","text":"stipulate that securities are owned by the Fund and the purchaser receives any interest on the security","page_number":431,"box":{"x":116,"y":103,"width":766,"height":12}},{"id":"5339b0ee-2240-4df1-ba8b-76c6fe12faed","block_type":"box","text":"paid during the period. In the case of repurchase agreements, the prices at which the trades are","page_number":431,"box":{"x":117,"y":118,"width":717,"height":12}},{"id":"9bc1ab19-3224-45dc-9f22-de4d3d485382","block_type":"box","text":"conducted do not reflect accrued interest on the underlying obligation; whereas, in the case of","page_number":431,"box":{"x":116,"y":134,"width":701,"height":12}},{"id":"c9379277-6318-4784-b449-dabb8383c396","block_type":"box","text":"purchase and sale contracts, the prices take into account accrued interest. A Fund may enter into","page_number":431,"box":{"x":117,"y":149,"width":728,"height":12}},{"id":"1b4372b4-8820-4ca7-ac7e-65624eb9f90e","block_type":"box","text":"“tri-party” repurchase agreements. In “tri-party” repurchase agreements, an unaffiliated third-party","page_number":431,"box":{"x":116,"y":165,"width":729,"height":12}},{"id":"fa7fb96c-a521-423e-bce0-ed52ee31f720","block_type":"box","text":"custodian maintains accounts to hold collateral for the Fund and its counterparties and, therefore, the","page_number":431,"box":{"x":116,"y":180,"width":756,"height":12}},{"id":"2212d262-7574-42fd-acd9-717f806b0704","block_type":"box","text":"Fund may be subject to the credit risk of those custodians.","page_number":431,"box":{"x":117,"y":196,"width":438,"height":12}},{"id":"b2fcd147-68e2-477d-bde9-aa7fecd3424f","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate","page_number":431,"box":{"x":116,"y":227,"width":758,"height":12}},{"id":"e0d4fdb5-1a20-4e5e-ae0e-98399ed8d596","block_type":"box","text":"of return insulated from market fluctuations during the term of the agreement, although such return","page_number":431,"box":{"x":116,"y":242,"width":737,"height":12}},{"id":"e6a5e6e9-d494-448c-9020-19683cf40e16","block_type":"box","text":"may be affected by currency fluctuations. However, in the event of a default under a repurchase","page_number":431,"box":{"x":117,"y":258,"width":716,"height":12}},{"id":"54761fac-4bde-46c0-aaf7-77f163e62607","block_type":"box","text":"agreement or under a purchase and sale contract, instead of the contractual fixed rate, the rate of","page_number":431,"box":{"x":116,"y":273,"width":730,"height":12}},{"id":"06f5532a-2f08-4810-baef-529a59d6c87a","block_type":"box","text":"return to the Fund would be dependent upon intervening fluctuations of the market values of the","page_number":431,"box":{"x":117,"y":289,"width":716,"height":12}},{"id":"f68cd03c-fa1d-49ea-a2b4-9071b3593852","block_type":"box","text":"securities underlying the contract and the accrued interest on those securities. In such event, the Fund","page_number":431,"box":{"x":116,"y":304,"width":766,"height":12}},{"id":"cb6b5db2-9115-4b7c-b835-c1bc23a7a363","block_type":"box","text":"would have rights against the seller for breach of contract with respect to any losses arising from","page_number":431,"box":{"x":116,"y":320,"width":721,"height":12}},{"id":"534b68bf-520a-4c8e-83d2-9f791c0ad4b0","block_type":"box","text":"market fluctuations following the default.","page_number":431,"box":{"x":117,"y":335,"width":303,"height":12}},{"id":"cf240881-21f2-4c6b-864c-40319e51ed7c","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may","page_number":431,"box":{"x":117,"y":366,"width":747,"height":12}},{"id":"75ed18e6-d999-4408-a2f6-dae79ec5b579","block_type":"box","text":"have longer terms, and may be construed to be collateralized loans by the purchaser to the seller","page_number":431,"box":{"x":117,"y":382,"width":718,"height":12}},{"id":"bdcf9706-2225-4ebf-acfa-7c44437a19c3","block_type":"box","text":"secured by the securities transferred to the purchaser. In the case of a repurchase agreement, as a","page_number":431,"box":{"x":116,"y":397,"width":735,"height":12}},{"id":"10606008-c2d0-4032-be58-9db35e275b95","block_type":"box","text":"purchaser, a Fund’s Manager or sub-adviser will monitor the creditworthiness of the seller, and a Fund","page_number":431,"box":{"x":117,"y":413,"width":756,"height":12}},{"id":"c047dd5f-5c98-4660-993e-7b3647babceb","block_type":"box","text":"will require the seller to provide additional collateral if the market value of the securities falls below the","page_number":431,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"5da55edc-cede-417c-b24c-949960bd4977","block_type":"box","text":"repurchase price at any time during the term of the repurchase agreement. The Fund does not have this","page_number":431,"box":{"x":117,"y":444,"width":769,"height":12}},{"id":"e8385b66-e68c-4901-b61e-3c64c41f3638","block_type":"box","text":"right to seek additional collateral as a purchaser in the case of purchase and sale contracts. The Fund’s","page_number":431,"box":{"x":117,"y":459,"width":765,"height":12}},{"id":"0d584e2a-4e51-4c35-8ae8-ddf942c619cf","block_type":"box","text":"Manager or sub-adviser will mark-to-market daily the value of the securities. Securities subject to","page_number":431,"box":{"x":117,"y":475,"width":715,"height":12}},{"id":"637e9449-ee50-4950-9904-ad38c5b099af","block_type":"box","text":"repurchase agreements (other than tri-party repurchase agreements) and purchase and sale contracts","page_number":431,"box":{"x":117,"y":490,"width":757,"height":12}},{"id":"a4d37f0b-82df-4c46-a26d-b5c0f2b3e09f","block_type":"box","text":"will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry","page_number":431,"box":{"x":116,"y":506,"width":733,"height":12}},{"id":"43a8656e-6823-489e-a4f3-8493d0a63ffb","block_type":"box","text":"system or by another authorized securities depository.","page_number":431,"box":{"x":116,"y":521,"width":403,"height":12}},{"id":"10c7c064-f83b-4627-b9db-23ccc7aaa262","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan,","page_number":431,"box":{"x":117,"y":552,"width":750,"height":12}},{"id":"6d37792a-e8e2-45aa-941d-ab07d50aaff7","block_type":"box","text":"the underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation","page_number":431,"box":{"x":116,"y":568,"width":763,"height":12}},{"id":"94f234f3-60d3-4a88-920f-f9ca9bd238b7","block_type":"box","text":"to pay the repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses","page_number":431,"box":{"x":116,"y":583,"width":770,"height":12}},{"id":"504eb0fb-916c-4467-9e2c-8d2607628340","block_type":"box","text":"in connection with disposition of the collateral. If the seller becomes insolvent and subject to liquidation or","page_number":431,"box":{"x":117,"y":599,"width":759,"height":12}},{"id":"9b19cde0-30af-492a-9258-c72beffddf94","block_type":"box","text":"reorganization under applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying","page_number":431,"box":{"x":117,"y":614,"width":733,"height":12}},{"id":"afdc5e5c-3583-4a2b-baf1-428248818c6d","block_type":"box","text":"securities may be restricted. Finally, it is possible that a Fund may not be able to substantiate its interest in","page_number":431,"box":{"x":116,"y":630,"width":769,"height":12}},{"id":"73541e18-9617-4907-8608-0d9182c06945","block_type":"box","text":"the underlying securities. To minimize this risk, the securities underlying the repurchase agreement will be","page_number":431,"box":{"x":116,"y":645,"width":766,"height":12}},{"id":"7f7e175b-7f9b-4f0c-9209-ad28d0f976a0","block_type":"box","text":"held by the applicable custodian at all times in an amount at least equal to the repurchase price, including","page_number":431,"box":{"x":117,"y":661,"width":756,"height":12}},{"id":"eabccc57-b8e6-4a4d-9f64-c4c67433dcd3","block_type":"box","text":"accrued interest. If the seller fails to repurchase the securities, a Fund may suffer a loss to the extent","page_number":431,"box":{"x":116,"y":676,"width":723,"height":12}},{"id":"92b4d441-5792-497d-9a63-6509f48b1850","block_type":"box","text":"proceeds from the sale of the underlying securities are less than the repurchase price.","page_number":431,"box":{"x":117,"y":692,"width":616,"height":12}},{"id":"7eec912e-4595-45d3-a825-d037cd9a83f6","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include","page_number":431,"box":{"x":117,"y":723,"width":765,"height":12}},{"id":"1af142bf-d908-4963-b4e1-7507930720de","block_type":"box","text":"cash items and obligations issued by the U.S. Governm","page_number":431,"box":{"x":116,"y":738,"width":395,"height":12}},{"id":"ff7b0bb0-a133-49d2-9ae8-efde19d40cdd","block_type":"box","text":"ent or its agencies or instrumentalities. For certain","page_number":431,"box":{"x":512,"y":738,"width":353,"height":12}},{"id":"1c7f91ff-9790-4ae3-9c77-9fdb6d966fd1","block_type":"box","text":"Funds, however, collateral may include instruments other","page_number":431,"box":{"x":117,"y":754,"width":406,"height":12}},{"id":"fd91d1f4-1f0b-4020-b50f-5f7bc5e1060e","block_type":"box","text":"than cash items and obligations issued by the","page_number":431,"box":{"x":527,"y":754,"width":324,"height":12}},{"id":"2b9f448a-bada-4a39-9d6c-e904f87d4f0f","block_type":"box","text":"U.S. Government or its agencies or instrumentalitie","page_number":431,"box":{"x":117,"y":769,"width":362,"height":12}},{"id":"797df0d2-2aee-4b2e-afe9-b143f5d558e6","block_type":"box","text":"s, including securities that the Fund could not hold","page_number":431,"box":{"x":480,"y":769,"width":354,"height":12}},{"id":"e08e85ea-2e29-4cbf-acac-e1c1d8d67e0f","block_type":"box","text":"directly under its investment strategi","page_number":431,"box":{"x":116,"y":785,"width":255,"height":12}},{"id":"629a0411-48d7-4b27-b55b-5c88f0d12302","block_type":"box","text":"es without the repurchase obligation.","page_number":431,"box":{"x":372,"y":785,"width":260,"height":12}},{"id":"480badba-9724-4ea3-8381-b8c8795bf167","block_type":"box","text":"The type of collateral underlying repurchase agreement","page_number":431,"box":{"x":116,"y":816,"width":394,"height":12}},{"id":"f8f009c2-6e09-4fd9-ade2-b8784e61fc0a","block_type":"box","text":"s may also pose certain risks for a Fund. Lower","page_number":431,"box":{"x":511,"y":816,"width":337,"height":12}},{"id":"c4ee491f-d952-404b-847e-33ceaf656b89","block_type":"box","text":"quality collateral and collateral with longer maturities may","page_number":431,"box":{"x":116,"y":831,"width":410,"height":12}},{"id":"661ed814-664f-4cf8-b6da-e5fae897003a","block_type":"box","text":"be subject to greater price fluctuations than higher","page_number":431,"box":{"x":526,"y":831,"width":360,"height":12}},{"id":"412a7235-9d4f-4ae8-b0ea-fef1579cc855","block_type":"box","text":"quality collateral and collateral with shorter maturities","page_number":431,"box":{"x":116,"y":847,"width":375,"height":12}},{"id":"ce2db094-f17f-46ea-805b-c226e6461409","block_type":"box","text":". If the repurchase agreement counterparty were to","page_number":431,"box":{"x":493,"y":847,"width":365,"height":12}},{"id":"2bdac699-7efe-4582-a505-8fd056378a79","block_type":"box","text":"default, lower quality collateral may be more difficult t","page_number":431,"box":{"x":116,"y":862,"width":371,"height":12}},{"id":"1d8172eb-1a84-4d8c-8a74-abf8ec7216f6","block_type":"box","text":"to liquidate than higher quality collateral. Should the","page_number":431,"box":{"x":487,"y":862,"width":371,"height":12}},{"id":"2e45d07a-b8b4-4a21-906d-cc344487d599","block_type":"box","text":"counterparty default and the amount of collateral not be","page_number":431,"box":{"x":116,"y":878,"width":398,"height":12}},{"id":"19875a55-1475-4b3f-93d5-c828ffbd3203","block_type":"box","text":"sufficient to cover the counterparty’s repurchase","page_number":431,"box":{"x":515,"y":878,"width":346,"height":12}},{"id":"cb29b219-66ae-476a-bb27-f0bb657d215d","block_type":"box","text":"II-92","page_number":431,"box":{"x":484,"y":909,"width":31,"height":9}},{"id":"4cdf9a9e-acef-46a5-a78d-599cb39bbd2c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":431,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"29e8aba5-7a29-4df0-a819-f69188098ad6","block_type":"box","text":"obligation, a Fund would retain the status of","page_number":432,"box":{"x":116,"y":87,"width":311,"height":12}},{"id":"f400dda2-19a2-4ace-9d42-c43f6231bed8","block_type":"box","text":"f an unsecured creditor of the counterparty (","page_number":432,"box":{"x":426,"y":87,"width":308,"height":12}},{"id":"5a9b6e6d-8e40-4877-bc0b-602e93558921","block_type":"box","text":"i.e.","page_number":432,"box":{"x":735,"y":87,"width":19,"height":10}},{"id":"8c496592-5ece-4acd-8769-be7fc662169c","block_type":"box","text":", the position the","page_number":432,"box":{"x":757,"y":87,"width":121,"height":12}},{"id":"e0d40282-68d6-4a5a-a923-03b3f1f2aebc","block_type":"box","text":"Fund would normally be in if it were to hold, pursuant","page_number":432,"box":{"x":117,"y":102,"width":375,"height":13}},{"id":"02c4c1b0-f69a-43ac-b726-1731414073c2","block_type":"box","text":"t to its investment policies, other unsecured debt","page_number":432,"box":{"x":491,"y":103,"width":344,"height":11}},{"id":"475fe546-6699-4551-aaa4-9ab2efa59e1b","block_type":"box","text":"securities of the defaulting counterparty) with respect","page_number":432,"box":{"x":116,"y":118,"width":371,"height":12}},{"id":"427c5e25-626f-48df-a739-64b3c08754a9","block_type":"box","text":"ct to the amount of the shortfall. As an unsecured","page_number":432,"box":{"x":487,"y":118,"width":347,"height":10}},{"id":"dc9b5ce1-af65-4464-b76f-ef2e056d6cf6","block_type":"box","text":"creditor, a Fund would be at risk of losing some or all of","page_number":432,"box":{"x":116,"y":134,"width":394,"height":12}},{"id":"f2563307-3a77-4dfa-a3f9-eaedf52d278c","block_type":"box","text":"f the principal and income involved in the transaction.","page_number":432,"box":{"x":509,"y":134,"width":378,"height":11}},{"id":"aca735f0-3f8b-4065-bc4e-62e682a8f978","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":432,"box":{"x":117,"y":165,"width":761,"height":12}},{"id":"7d28c923-9d81-49cb-8794-5288d21192f7","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many repurchase agreements","page_number":432,"box":{"x":116,"y":180,"width":771,"height":12}},{"id":"176c41f2-0479-4a4f-8d29-b02f05836d7f","block_type":"box","text":"and purchase and sale contracts, terms that delay or restrict the rights of counterparties, such as a","page_number":432,"box":{"x":116,"y":196,"width":738,"height":12}},{"id":"41d10168-1c21-4d79-9465-280144413ca1","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":432,"box":{"x":117,"y":211,"width":744,"height":12}},{"id":"c351091e-967c-4bef-b124-d63e8ec6b728","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":432,"box":{"x":116,"y":227,"width":748,"height":12}},{"id":"ba5f3ef5-7265-4125-8f11-4179b759fdb4","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these requirements, as well as","page_number":432,"box":{"x":116,"y":242,"width":707,"height":12}},{"id":"c6c511c7-47d7-41c7-beac-dcc61c7c16c4","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":432,"box":{"x":117,"y":258,"width":729,"height":12}},{"id":"080701ce-2ff1-4321-b951-9443e51dd1c8","block_type":"box","text":"affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale contracts or","page_number":432,"box":{"x":116,"y":273,"width":768,"height":12}},{"id":"ffd19384-b08f-4bae-b149-e78bc935bc18","block_type":"box","text":"to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":432,"box":{"x":116,"y":289,"width":747,"height":12}},{"id":"d2d20879-928f-4282-b882-dc32b4f54a05","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally","page_number":432,"box":{"x":117,"y":304,"width":770,"height":12}},{"id":"7f1524b8-12a8-49da-8e61-2644de820060","block_type":"box","text":"cleared. Compliance with these rules is expected to be required by the middle of 2027. Although the","page_number":432,"box":{"x":116,"y":320,"width":747,"height":12}},{"id":"8734e9fc-6e05-453c-b1e4-f97f803542a1","block_type":"box","text":"impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":432,"box":{"x":117,"y":335,"width":770,"height":12}},{"id":"311fb1e3-8e45-401c-8d5c-074c89fe4b26","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":432,"box":{"x":116,"y":351,"width":563,"height":12}},{"id":"7d33d868-8efb-4e3d-9c30-706409175553","block_type":"box","text":"Restricted Securities.","page_number":432,"box":{"x":116,"y":382,"width":177,"height":9}},{"id":"b3810b20-ecbb-4c65-aa86-09d0b9c83ae0","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the","page_number":432,"box":{"x":293,"y":382,"width":539,"height":12}},{"id":"7bf58c7f-8ca9-4270-ac2c-62dc88b64329","block_type":"box","text":"Securities Act (“restricted securities”), which may include securities in private companies and","page_number":432,"box":{"x":116,"y":397,"width":694,"height":12}},{"id":"63aa9a9c-bfb8-4c10-ba8c-993373897ef8","block_type":"box","text":"Rule 144A Securities. Restricted securities may be sold in private placement transactions between","page_number":432,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"61caa708-c784-4291-ae1f-031d3302bbcf","block_type":"box","text":"issuers and their purchasers, including through private negotiated transactions between the issuer and","page_number":432,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"d7ec2062-4f66-48b8-bb01-519b67697b06","block_type":"box","text":"their purchasers, such as the Funds, and may be neither listed on an exchange nor traded in other","page_number":432,"box":{"x":116,"y":444,"width":736,"height":12}},{"id":"e87ca1d3-687b-4b37-b59e-3071265f474e","block_type":"box","text":"established markets. In many cases, privately placed securities may not be freely transferable under","page_number":432,"box":{"x":116,"y":459,"width":749,"height":12}},{"id":"6c9d6640-1702-41e8-973e-db2ad149096a","block_type":"box","text":"the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of these","page_number":432,"box":{"x":116,"y":475,"width":714,"height":12}},{"id":"c8dae35b-d981-4043-a5bd-2935f2824bc4","block_type":"box","text":"securities are new and complex, and trade only among institutions; the markets for these securities are","page_number":432,"box":{"x":116,"y":490,"width":769,"height":12}},{"id":"4b48f035-7e42-4fa9-a011-c2e761c7b2d3","block_type":"box","text":"still developing and may not function as efficiently as established markets. Typically, investments in","page_number":432,"box":{"x":116,"y":506,"width":742,"height":12}},{"id":"e91e8933-3fb5-4514-a1a6-01a738fef168","block_type":"box","text":"private companies are in restricted securities that are not traded in public markets and subject to","page_number":432,"box":{"x":117,"y":521,"width":719,"height":12}},{"id":"14298961-1ab6-47cc-b6f5-c3ad84ba4108","block_type":"box","text":"substantial holding periods, so that a Fund may not be able to resell some of its holdings for extended","page_number":432,"box":{"x":116,"y":537,"width":760,"height":12}},{"id":"32c4fe18-6c96-455f-b0ce-f27d9290a51c","block_type":"box","text":"periods, which may be several years. There can be no assurance that a Fund will be able to realize the","page_number":432,"box":{"x":117,"y":552,"width":769,"height":12}},{"id":"0368c69a-4da9-4e8f-bb01-86a06240b332","block_type":"box","text":"value of such restricted securities in a timely manner or at all. As a result of the absence of a public","page_number":432,"box":{"x":116,"y":568,"width":741,"height":12}},{"id":"47516ead-cfa5-4ab1-bda4-0d38427c66c6","block_type":"box","text":"trading market and the potential bespoke nature on certain transactions, restricted securities may be","page_number":432,"box":{"x":116,"y":583,"width":750,"height":12}},{"id":"99e8f08b-80d5-4a36-9bc9-74710e7cb559","block_type":"box","text":"deemed to be illiquid investments or less liquid investments and may be more difficult to value than","page_number":432,"box":{"x":116,"y":599,"width":740,"height":12}},{"id":"56940fc6-b141-4d45-8754-43aaead7078e","block_type":"box","text":"publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":432,"box":{"x":117,"y":614,"width":757,"height":12}},{"id":"2c42df6e-771a-4132-9d14-da0eb1301c9c","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those","page_number":432,"box":{"x":116,"y":630,"width":713,"height":12}},{"id":"36a06a6c-119f-4007-91f5-e9ba05b03a55","block_type":"box","text":"originally paid by the Fund or less than their fair market value. The amount of any discount may vary","page_number":432,"box":{"x":116,"y":645,"width":749,"height":12}},{"id":"d81f5002-2a25-4d35-ab48-a722d1e00aa1","block_type":"box","text":"depending on the security type, the character of the issuer, which party (if any) will bear the expenses","page_number":432,"box":{"x":116,"y":661,"width":754,"height":12}},{"id":"1f8ea23e-3915-42d4-956d-d917b5a64597","block_type":"box","text":"of registering the restricted security, and prevailing market conditions. In addition, issuers whose","page_number":432,"box":{"x":116,"y":676,"width":715,"height":12}},{"id":"d98ea348-48db-4b84-9691-8954849ab2c7","block_type":"box","text":"securities are not publicly traded or who are not otherwise publicly listed may not be subject to the","page_number":432,"box":{"x":116,"y":692,"width":727,"height":12}},{"id":"1f4bf0c4-75c9-44ee-bf2b-3738b8875381","block_type":"box","text":"disclosure and other investor protection requirements that may be applicable if their securities were","page_number":432,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"2b2c0e98-d965-47a5-8d41-19bb4fbd0438","block_type":"box","text":"publicly traded. If any privately placed securities held by a Fund are required to be registered under the","page_number":432,"box":{"x":117,"y":723,"width":764,"height":12}},{"id":"cf7f6e3a-a29d-4539-a15c-bead418fc4af","block_type":"box","text":"securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the","page_number":432,"box":{"x":116,"y":738,"width":751,"height":12}},{"id":"6621befc-51ae-45dc-9b6e-b871f156bb00","block_type":"box","text":"expenses of registration. Where registration is required for restricted securities, a considerable time","page_number":432,"box":{"x":116,"y":754,"width":738,"height":12}},{"id":"9006e6f6-d3f6-4b58-a2c8-8fbee7229fac","block_type":"box","text":"period may elapse between the time the Fund decides to sell the security and the time it is actually","page_number":432,"box":{"x":117,"y":769,"width":731,"height":12}},{"id":"4be86fbc-9209-4d53-a7ad-60bcc176301b","block_type":"box","text":"permitted to sell the security under an effective registration statement. If during such period, adverse","page_number":432,"box":{"x":117,"y":785,"width":744,"height":12}},{"id":"cc5edd76-8c59-4914-b709-04e9e8107695","block_type":"box","text":"market conditions were to develop, the Fund might obtain less favorable pricing terms than when it","page_number":432,"box":{"x":117,"y":800,"width":731,"height":12}},{"id":"52e01d2c-8d26-4f7a-8caf-de47fe6c6487","block_type":"box","text":"decided to sell the security. In addition, the Fund may be deemed to be an “underwriter” for purposes","page_number":432,"box":{"x":116,"y":816,"width":750,"height":12}},{"id":"9dd2f6ee-b4ca-4db4-aba0-d6399206a03f","block_type":"box","text":"of the Securities Act when selling restricted securities. If so, the Fund may be liable to purchasers of","page_number":432,"box":{"x":116,"y":831,"width":747,"height":12}},{"id":"5f3e41cf-cf27-460f-a61e-f6143bef1cf3","block_type":"box","text":"the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":432,"box":{"x":116,"y":847,"width":722,"height":12}},{"id":"41d5cc54-9afb-46ca-b3ac-81ddf8eb21a7","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other","page_number":432,"box":{"x":117,"y":862,"width":769,"height":12}},{"id":"f9d15a67-de53-4bbf-9b1e-7ed594db3551","block_type":"box","text":"transaction costs that are higher than those for transactions in unrestricted securities. Certain of the","page_number":432,"box":{"x":116,"y":878,"width":744,"height":12}},{"id":"596de759-64df-4195-a448-4fdda80fbdd1","block_type":"box","text":"II-93","page_number":432,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c060e7f0-28ba-420c-a243-39b35cbf96e3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":432,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"dd7815d3-c73f-4e90-b8a5-74ba1bec1193","block_type":"box","text":"Fund’s investments in private placements may consist of direct investments and may include","page_number":433,"box":{"x":117,"y":87,"width":692,"height":12}},{"id":"e117cb20-defb-4de2-96c2-2547ca6c3147","block_type":"box","text":"investments in smaller, less seasoned issuers, which may involve greater risks. Issuers of restricted","page_number":433,"box":{"x":117,"y":102,"width":744,"height":13}},{"id":"ac9e7953-4ce7-4734-b994-15ebd16a3ae8","block_type":"box","text":"securities may not be subject to SEC reporting requirements, may not be required to maintain their","page_number":433,"box":{"x":116,"y":118,"width":737,"height":12}},{"id":"86cce349-f4bf-4a05-a6bf-d92560f84143","block_type":"box","text":"accounting records in accordance with generally accepted accounting principles, and may not be","page_number":433,"box":{"x":116,"y":134,"width":724,"height":12}},{"id":"46bae1e8-8cf2-4b53-baf6-58951edf7122","block_type":"box","text":"required to maintain effective internal controls over financial reporting. As a result, BlackRock may not","page_number":433,"box":{"x":117,"y":149,"width":760,"height":12}},{"id":"0b48368e-b5cb-4bbf-9b82-470f5ade75c5","block_type":"box","text":"have timely or accurate information about the business, financial condition and results of operations of","page_number":433,"box":{"x":117,"y":165,"width":762,"height":12}},{"id":"85678882-d825-4fa4-b886-d08fe1fe6e94","block_type":"box","text":"such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":433,"box":{"x":116,"y":180,"width":764,"height":12}},{"id":"d6f3e4da-976a-4c37-982e-71b2848765fb","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited","page_number":433,"box":{"x":116,"y":196,"width":729,"height":12}},{"id":"dfba7db7-7ee1-4c19-bbc3-06f8b2fad10f","block_type":"box","text":"product lines, markets or financial resources, or they may be dependent on a limited management","page_number":433,"box":{"x":117,"y":211,"width":731,"height":12}},{"id":"cdd18db1-a7b5-4380-9883-68d1df254671","block_type":"box","text":"group.","page_number":433,"box":{"x":116,"y":229,"width":52,"height":10}},{"id":"57c15aa1-54d4-44ce-98b3-9ded8ba4432d","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":433,"box":{"x":117,"y":258,"width":740,"height":12}},{"id":"2a13fbdd-68aa-4383-ad69-d177ae26ea1c","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced","page_number":433,"box":{"x":117,"y":273,"width":687,"height":12}},{"id":"e02b1653-4d9a-47d8-bb78-5afdeec1a74d","block_type":"box","text":"proportionately as the Fund’s net assets grow from new or additional investments made in the Fund by","page_number":433,"box":{"x":117,"y":289,"width":766,"height":12}},{"id":"b9ad500a-13a4-4e52-82cf-2e8c24fde1e1","block_type":"box","text":"other shareholders. The issuer of a private placement may later register those shares for public sale in","page_number":433,"box":{"x":116,"y":304,"width":765,"height":12}},{"id":"097a42ff-6743-44d7-9461-7ce222e17dfd","block_type":"box","text":"an IPO, but there is no guarantee that an IPO will ever be completed. Even after an IPO, there may be","page_number":433,"box":{"x":116,"y":320,"width":766,"height":12}},{"id":"211f2ac4-6de8-40a8-945e-fc31a50023b0","block_type":"box","text":"a limited trading market for securities of that issuer, including any direct investment by a Fund, or the","page_number":433,"box":{"x":116,"y":335,"width":752,"height":12}},{"id":"74fb50c4-0eed-4755-a71c-b2c59d162e02","block_type":"box","text":"Fund may be subject to contractual limitations on its ability to resell its existing securities following an","page_number":433,"box":{"x":117,"y":351,"width":754,"height":12}},{"id":"902ae96e-d41a-4773-9dd4-52eab171776a","block_type":"box","text":"IPO. The inability of an applicable issuer of a restricted security to complete an IPO or offer other","page_number":433,"box":{"x":117,"y":366,"width":723,"height":12}},{"id":"fca6cb2a-3729-4053-b853-7ffd56949e39","block_type":"box","text":"liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":433,"box":{"x":117,"y":382,"width":708,"height":12}},{"id":"76e324f6-263f-4152-8919-40d8c452207e","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making","page_number":433,"box":{"x":117,"y":397,"width":756,"height":12}},{"id":"01a70f2d-1220-4d0b-859b-94477232312e","block_type":"box","text":"investments in such securities, a Fund may obtain access to material nonpublic information, which may","page_number":433,"box":{"x":117,"y":413,"width":770,"height":12}},{"id":"0bdedb5a-424d-43ee-a659-b7c3c7bd0fb2","block_type":"box","text":"restrict the Fund’s ability to conduct portfolio transactions in such securities. The activity of identifying,","page_number":433,"box":{"x":117,"y":428,"width":759,"height":12}},{"id":"4f50a6d8-06de-461d-9d35-8b1700441cba","block_type":"box","text":"completing, and realizing upon attractive investments in restricted securities is highly competitive and","page_number":433,"box":{"x":116,"y":444,"width":756,"height":12}},{"id":"259edba1-1057-4e0c-87e2-e879cd69f226","block_type":"box","text":"involves a high degree of uncertainty. A Fund will be competing for investments against other similarly","page_number":433,"box":{"x":117,"y":459,"width":761,"height":12}},{"id":"9e55f54b-4463-4859-8a46-058142ee4560","block_type":"box","text":"situated investors. It is possible that competition for appropriate investment opportunities may increase,","page_number":433,"box":{"x":116,"y":475,"width":772,"height":12}},{"id":"e9245cbe-1bcc-408a-8709-18a39dee8bb9","block_type":"box","text":"thus potentially reducing the number of investment opportunities available to a Fund and adversely","page_number":433,"box":{"x":116,"y":490,"width":738,"height":12}},{"id":"59616744-e5a6-49ec-97aa-4a6828b278ff","block_type":"box","text":"affecting the terms upon which investments can be made. There is no assurance that investment","page_number":433,"box":{"x":116,"y":506,"width":724,"height":12}},{"id":"3a369b94-922f-45b3-9396-9034db62a4a9","block_type":"box","text":"opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":433,"box":{"x":116,"y":521,"width":765,"height":12}},{"id":"59cf858c-1c40-4538-b665-cad51d4f654b","block_type":"box","text":"especially as that Fund grows in size.","page_number":433,"box":{"x":116,"y":537,"width":283,"height":12}},{"id":"c048478c-c905-4125-b1ad-931f3054a494","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular,","page_number":433,"box":{"x":116,"y":568,"width":722,"height":12}},{"id":"9508aa2f-37d0-41f7-a734-ed69c508dbd3","block_type":"box","text":"restricted securities issued by private companies), and thus may be considered “illiquid.” Each Fund","page_number":433,"box":{"x":117,"y":583,"width":745,"height":12}},{"id":"7099c4cd-0157-4c8c-ab11-12f4bb430212","block_type":"box","text":"values restricted securities in accordance with BlackRock’s valuation policies and procedures, which","page_number":433,"box":{"x":116,"y":599,"width":750,"height":12}},{"id":"49ee4501-7584-48b2-a4c9-c5f630c0fa6b","block_type":"box","text":"are designed to value investments such that they accurately reflect fair value. Due to the inherent","page_number":433,"box":{"x":116,"y":614,"width":727,"height":12}},{"id":"c702ba28-dfd7-4bad-95c0-36d027428992","block_type":"box","text":"uncertainty and subjectivity of determining the fair value of investments that do not have a readily","page_number":433,"box":{"x":117,"y":630,"width":725,"height":12}},{"id":"9ee3a802-f763-422c-89d2-473c6b0666d8","block_type":"box","text":"available market value, the fair value of a Fund’s private investments may differ significantly from the","page_number":433,"box":{"x":116,"y":645,"width":752,"height":12}},{"id":"6fe9e413-ed39-4b9f-a7c2-1b47465e77e4","block_type":"box","text":"values that would have been used had a readily available market value existed for such investments","page_number":433,"box":{"x":116,"y":661,"width":744,"height":12}},{"id":"7e0c70da-02aa-4a9f-8512-0c3d0c625e53","block_type":"box","text":"and may differ materially from the amounts the Fund may realize on any dispositions of such","page_number":433,"box":{"x":116,"y":676,"width":686,"height":12}},{"id":"cd101501-4ed3-4b53-8b30-a29d48361195","block_type":"box","text":"investments. Differences in the value of the Fund’s private investments could result in the Fund’s","page_number":433,"box":{"x":117,"y":692,"width":717,"height":12}},{"id":"a2e8229e-e93e-4fe7-9749-41cfd14eaa82","block_type":"box","text":"shareholder transactions being effected at a NAV that does not accurately reflect the underlying value","page_number":433,"box":{"x":116,"y":707,"width":755,"height":12}},{"id":"b9fdd92f-0f15-43ed-9994-e7cc30e6792b","block_type":"box","text":"of the Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing","page_number":433,"box":{"x":116,"y":723,"width":712,"height":12}},{"id":"78902e54-a1e6-4bab-81f5-b66cfdab63de","block_type":"box","text":"opportunities for shareholder arbitrage. The values used by the Fund to price its restricted securities","page_number":433,"box":{"x":116,"y":738,"width":742,"height":12}},{"id":"4886f2c4-353c-4094-a88b-78218589e437","block_type":"box","text":"may also differ from those used by other investment companies and investors to price the same","page_number":433,"box":{"x":117,"y":754,"width":710,"height":12}},{"id":"12558c1b-5028-47a7-9455-b1e25731363f","block_type":"box","text":"restricted securities. In addition, the impact of changes in the market environment and other events on","page_number":433,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"85017db4-912c-4fc9-92dc-85c528a77a1c","block_type":"box","text":"the fair values of a Fund’s investments that have no readily available market values may differ from the","page_number":433,"box":{"x":116,"y":785,"width":764,"height":12}},{"id":"f07d4533-ce8b-4954-950e-5d80f38f858d","block_type":"box","text":"impact of such changes on the readily available market values for the Fund’s other investments. A","page_number":433,"box":{"x":117,"y":800,"width":728,"height":12}},{"id":"31e49078-3ba6-4904-aa6b-fcfa376c4c47","block_type":"box","text":"Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair value of the","page_number":433,"box":{"x":117,"y":816,"width":733,"height":12}},{"id":"0a1e5912-bf35-4af8-ae53-961592ed93b3","block_type":"box","text":"Fund’s investments were materially higher than the investment’s actual market or fair value or the","page_number":433,"box":{"x":117,"y":831,"width":728,"height":12}},{"id":"2219a034-a113-4fce-aa39-f8498415d8c8","block_type":"box","text":"values that the Fund ultimately realizes upon the disposal of such investments.","page_number":433,"box":{"x":116,"y":847,"width":590,"height":12}},{"id":"22e2c92f-cf02-46e2-8f66-fafab8156f94","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":433,"box":{"x":116,"y":878,"width":400,"height":12}},{"id":"821228ea-b379-4492-b594-52237c339782","block_type":"box","text":"II-94","page_number":433,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"245eeb0f-c003-4f46-a284-93a8e6753350","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":433,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"21b33d20-8876-4a35-9465-b46f1ebfcaca","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":434,"box":{"x":116,"y":87,"width":257,"height":12}},{"id":"4eb23afb-c8f5-4212-bfd4-709ba13fc026","block_type":"box","text":"A Fund may enter into reverse re","page_number":434,"box":{"x":373,"y":87,"width":227,"height":12}},{"id":"6da0c2d5-6ea6-4bde-be33-33e168e727f9","block_type":"box","text":"repurchase agreements with the same","page_number":434,"box":{"x":600,"y":87,"width":267,"height":12}},{"id":"096943f8-38b7-4805-81a9-03b0063f0f06","block_type":"box","text":"parties with whom it may enter into repurchase","page_number":434,"box":{"x":117,"y":103,"width":328,"height":12}},{"id":"2c0706ba-c190-4603-9865-2ee592697449","block_type":"box","text":"agreements. Under a reverse repurchase agreement, a Fund","page_number":434,"box":{"x":445,"y":103,"width":431,"height":12}},{"id":"36a2a7f8-b9c0-4e14-b21a-3d8cfb51c63d","block_type":"box","text":"sells securities to another party and agrees to repurc","page_number":434,"box":{"x":116,"y":118,"width":358,"height":12}},{"id":"24436023-5f11-43fc-ab00-398040259b21","block_type":"box","text":"rchase them at a particular date and price. A Fund may","page_number":434,"box":{"x":473,"y":118,"width":383,"height":12}},{"id":"bd97ba83-c25e-4ce8-bb73-e9f8ed57953e","block_type":"box","text":"enter into a reverse repurchase agreement when it is","page_number":434,"box":{"x":116,"y":134,"width":372,"height":12}},{"id":"c257d446-9fbe-47f0-8c24-10cb9a762955","block_type":"box","text":"anticipated that the interest income to be earned from","page_number":434,"box":{"x":488,"y":134,"width":376,"height":11}},{"id":"58477974-da19-4537-951f-caf0b4202cab","block_type":"box","text":"the investment of the proceeds of the transaction is","page_number":434,"box":{"x":116,"y":149,"width":359,"height":12}},{"id":"9621fb84-e462-4ed1-bfca-dd0d0156c85d","block_type":"box","text":"greater than the interest expense of the transaction.","page_number":434,"box":{"x":475,"y":149,"width":363,"height":12}},{"id":"44b17dcf-6350-425c-a4cb-b35b8f904788","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":434,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"edb57916-998d-4200-bef9-360bd4e14b76","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the","page_number":434,"box":{"x":117,"y":196,"width":771,"height":12}},{"id":"c58c01ad-520f-45dd-8687-f02b2d469435","block_type":"box","text":"investment of the proceeds will be less than the interest expense, (ii) the market value of the securities","page_number":434,"box":{"x":117,"y":211,"width":765,"height":12}},{"id":"9a1810f3-e671-4135-afb3-306b7a2b0e14","block_type":"box","text":"retained in lieu of sale by a Fund may decline below","page_number":434,"box":{"x":117,"y":227,"width":390,"height":12}},{"id":"06373b8b-0b90-41fd-a8e0-565f3394c2cb","block_type":"box","text":"the price of the securities the Fund has sold but is","page_number":434,"box":{"x":507,"y":227,"width":375,"height":11}},{"id":"d786321f-71c9-49cf-8fad-ba1af87ecbc6","block_type":"box","text":"obligated to repurchase, (iii) the market value of the securities sold will decline below the price at which","page_number":434,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"c32bc084-dabe-40c3-9229-c1f79aeaa550","block_type":"box","text":"the Fund is required to repurchase them and (iv) the securities will not be returned to the Fund.","page_number":434,"box":{"x":116,"y":258,"width":710,"height":12}},{"id":"c8215f2f-f99e-4bc7-84e9-d55b045d565c","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":434,"box":{"x":117,"y":289,"width":759,"height":12}},{"id":"c435b024-1dbc-4b9a-a6d7-87349a82c68a","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to","page_number":434,"box":{"x":117,"y":304,"width":732,"height":12}},{"id":"a8d385b7-dcde-47f9-a619-5a1b57e72a57","block_type":"box","text":"enforce a Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse","page_number":434,"box":{"x":116,"y":320,"width":758,"height":12}},{"id":"9b2d014b-a59e-4109-99d9-094c612643ef","block_type":"box","text":"repurchase agreement may effectively be restricted pending such decision.","page_number":434,"box":{"x":117,"y":335,"width":531,"height":12}},{"id":"71b7738e-a8be-464f-a1a1-48d79f323a8d","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase","page_number":434,"box":{"x":117,"y":366,"width":710,"height":12}},{"id":"d337bf18-2a31-4292-8a87-607a82dccdca","block_type":"box","text":"agreements and similar financing transactions (e.g., recourse and non-recourse tender option bonds,","page_number":434,"box":{"x":116,"y":382,"width":755,"height":12}},{"id":"16e0092c-6714-40bb-8de5-26c63f60136d","block_type":"box","text":"borrowed bonds) notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":434,"box":{"x":117,"y":397,"width":767,"height":12}},{"id":"b882f666-b00a-4ff4-a2e4-d8d449f592c6","block_type":"box","text":"Investment Company Act, provided that the Fund either (i) complies with the 300% asset coverage","page_number":434,"box":{"x":117,"y":413,"width":736,"height":12}},{"id":"be4ec2fb-a2ff-48b9-a290-b8c33d11d554","block_type":"box","text":"ratio with respect to all such transactions and any other borrowings in the aggregate, or (ii) treats all","page_number":434,"box":{"x":117,"y":428,"width":744,"height":12}},{"id":"238939b5-2660-4111-8a98-1c81af125681","block_type":"box","text":"such transactions as Derivatives Transactions under Rule 18f-4. See “— Derivatives — Regulation of","page_number":434,"box":{"x":116,"y":444,"width":756,"height":12}},{"id":"106d8bf5-c8bd-41af-91a3-ce0280d6b029","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also finalized rules","page_number":434,"box":{"x":117,"y":459,"width":768,"height":12}},{"id":"e78e3ff7-8405-4a2d-9596-20f9ca2350e6","block_type":"box","text":"that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":434,"box":{"x":116,"y":475,"width":685,"height":12}},{"id":"054be426-d901-4841-b52b-589329cad285","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the","page_number":434,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"2f2f6076-a373-4fc7-91da-36ebf4d7c871","block_type":"box","text":"middle of 2027. Although the impact of these rules on the Funds is difficult to predict, they may reduce","page_number":434,"box":{"x":117,"y":506,"width":762,"height":12}},{"id":"09ce0301-aaf8-4d16-adfb-65e5193af5ee","block_type":"box","text":"the availability or increase the costs of such transactions and may adversely affect a Fund’s","page_number":434,"box":{"x":116,"y":521,"width":686,"height":12}},{"id":"bfe68115-fef9-4d2a-8411-9fdade885f63","block_type":"box","text":"performance.","page_number":434,"box":{"x":117,"y":537,"width":103,"height":12}},{"id":"bfa707d1-361a-4a65-bae9-5a7fed0ee96e","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated","page_number":434,"box":{"x":116,"y":568,"width":707,"height":12}},{"id":"693f9232-f1f6-4c50-9702-3c6a69468d38","block_type":"box","text":"counterparties and certain of their affiliates to include in certain financial contracts, including many","page_number":434,"box":{"x":116,"y":583,"width":732,"height":12}},{"id":"019e2027-3c3b-4f11-8d42-cc9e881a2cf1","block_type":"box","text":"reverse repurchase agreements, terms that delay or restrict the rights of counterparties, such as a","page_number":434,"box":{"x":117,"y":599,"width":732,"height":12}},{"id":"7b12aa45-63eb-47d0-8836-31eea81f34b8","block_type":"box","text":"Fund, to terminate such agreements, take foreclosure action, exercise other default rights or restrict","page_number":434,"box":{"x":117,"y":614,"width":744,"height":12}},{"id":"c62d659e-ebc9-4426-9260-ac058f72c58a","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain","page_number":434,"box":{"x":116,"y":630,"width":748,"height":12}},{"id":"ffa89b10-eb3a-43ce-a78b-67025e685f11","block_type":"box","text":"types of resolution or insolvency proceedings. It is possible that these requirements, as well as","page_number":434,"box":{"x":116,"y":645,"width":707,"height":12}},{"id":"4484c2be-5f3c-4e07-b97a-8332324b3f03","block_type":"box","text":"potential additional government regulation and other developments in the market, could adversely","page_number":434,"box":{"x":117,"y":661,"width":725,"height":12}},{"id":"25bc6797-84e8-4feb-8223-da10b2575480","block_type":"box","text":"affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize amounts to be","page_number":434,"box":{"x":116,"y":676,"width":760,"height":12}},{"id":"252b64cb-cdc9-44bc-b3fd-1b30f85b9ee8","block_type":"box","text":"received under such agreements.","page_number":434,"box":{"x":117,"y":692,"width":247,"height":12}},{"id":"6fd15cd9-e309-4131-8493-4344516eff5a","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":434,"box":{"x":116,"y":723,"width":349,"height":12}},{"id":"2895c64a-3c5d-4216-acb3-4677e8155607","block_type":"box","text":"Certain Funds may participate in rights offerings and","page_number":434,"box":{"x":471,"y":723,"width":388,"height":12}},{"id":"9c61adfc-b19f-46c3-9065-1362a36cdffa","block_type":"box","text":"may purchase warrants, which are privileges issued by corporations enabling the owners to subscribe","page_number":434,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"3f8636d8-8d6c-439c-9023-b8a74f3b5394","block_type":"box","text":"to and purchase a specified number of shares of the corporation at a specified price during a specified","page_number":434,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"e9add970-3195-4156-8687-84155f181721","block_type":"box","text":"period of time. Subscription rights normally have a short life span to expiration. The purchase of rights","page_number":434,"box":{"x":117,"y":769,"width":754,"height":12}},{"id":"d7de15a2-37a1-4041-ba15-fd69bfb84791","block_type":"box","text":"or warrants involves the risk that a Fund could lose the purchase value of a right or warrant if the right","page_number":434,"box":{"x":116,"y":785,"width":755,"height":12}},{"id":"f704af81-f0f2-45d7-b8b2-71c171e9cb1f","block_type":"box","text":"to subscribe to additional shares is not exercised prior to the rights’ and warrants’ expiration. Also, the","page_number":434,"box":{"x":116,"y":800,"width":755,"height":12}},{"id":"cce8ea09-8ede-477b-ba6b-506cb4cd58c7","block_type":"box","text":"purchase of rights and/or warrants involves the risk that the effective price paid for the right and/or","page_number":434,"box":{"x":117,"y":816,"width":727,"height":12}},{"id":"66204779-c7c1-41a9-8c48-fe09db24804c","block_type":"box","text":"warrant added to the subscription price of the related security may exceed the value of the subscribed","page_number":434,"box":{"x":116,"y":831,"width":762,"height":12}},{"id":"7c460a48-a760-4212-9bee-6060a89a99ba","block_type":"box","text":"security’s market price such as when there is no movement in the level of the underlying security.","page_number":434,"box":{"x":116,"y":847,"width":728,"height":12}},{"id":"64284a82-fa33-43ab-87ab-1d904e05f44d","block_type":"box","text":"Buying a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder","page_number":434,"box":{"x":117,"y":862,"width":747,"height":12}},{"id":"3729e695-2857-4f69-a059-a01e09c5d27e","block_type":"box","text":"has no voting or dividend rights with respect to the underlying stock. A warrant does not carry any right","page_number":434,"box":{"x":117,"y":878,"width":766,"height":12}},{"id":"1bcfa15d-01f9-4788-b019-9e8c24a2b102","block_type":"box","text":"II-95","page_number":434,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"b817fdc2-17ef-4a95-86fa-19089ca658bf","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":434,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2e3f8395-e53f-4cec-8971-58e3b13e6536","block_type":"box","text":"to assets of the issuer, and for this reason investments in warrants may be more speculative than other","page_number":435,"box":{"x":116,"y":87,"width":771,"height":12}},{"id":"c35119f9-ace9-47e2-b8d9-87b68e6b7e2f","block_type":"box","text":"equity-based investments.","page_number":435,"box":{"x":116,"y":103,"width":200,"height":12}},{"id":"16aff081-ec74-462b-b9bc-a8975de5c109","block_type":"box","text":"Rule 144A Securities.","page_number":435,"box":{"x":116,"y":134,"width":170,"height":9}},{"id":"944766dd-82bc-400a-ba05-a2b7e837f15d","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":435,"box":{"x":287,"y":134,"width":590,"height":12}},{"id":"0f72cab1-ca68-4f31-8387-0fe53e69ab61","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":435,"box":{"x":117,"y":149,"width":769,"height":12}},{"id":"1cc8dc8a-6a24-453e-bd20-73d2186ed3e6","block_type":"box","text":"Securities Lending.","page_number":435,"box":{"x":117,"y":180,"width":153,"height":12}},{"id":"28d88ab5-89e7-4527-9f7e-a62b12a311c5","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock","page_number":435,"box":{"x":271,"y":180,"width":575,"height":12}},{"id":"87af45c3-4c1e-4b54-9393-8645c6330bd5","block_type":"box","text":"determines to be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide","page_number":435,"box":{"x":116,"y":196,"width":744,"height":12}},{"id":"3e572cc3-af7b-409d-bc22-ba31581649e7","block_type":"box","text":"collateral that is maintained in an amount at least","page_number":435,"box":{"x":116,"y":211,"width":369,"height":10}},{"id":"0f4ff38b-6204-42de-9f59-12d57362c57c","block_type":"box","text":"equal to the current market value of the securities","page_number":435,"box":{"x":486,"y":211,"width":373,"height":12}},{"id":"84d61f70-b14d-457c-9988-9f7b7d16d5cf","block_type":"box","text":"loaned. No securities loan shall be made on behalf of a Fund if, as a result, the aggregate value of all","page_number":435,"box":{"x":117,"y":227,"width":755,"height":12}},{"id":"90debe46-97a3-42cb-8122-050f50646fb2","block_type":"box","text":"securities loans of the particular Fund exceeds one-third of the value of such Fund’s total assets","page_number":435,"box":{"x":116,"y":242,"width":718,"height":12}},{"id":"6130ea45-c7cf-4b31-82a0-09cd7ced5123","block_type":"box","text":"(including the value of the collateral received). A Fund may terminate a loan at any time and obtain the","page_number":435,"box":{"x":117,"y":258,"width":765,"height":12}},{"id":"3b224094-d528-41aa-b265-e5c7be517d55","block_type":"box","text":"return of the securities loaned. Each Fund receives, by way of substitute payment, the value of any","page_number":435,"box":{"x":117,"y":273,"width":738,"height":12}},{"id":"1d6faace-ee4b-4d54-b623-e296bef36e2b","block_type":"box","text":"interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise","page_number":435,"box":{"x":117,"y":289,"width":738,"height":12}},{"id":"9678754f-15cf-4bf6-a2a1-a2ffa5297b46","block_type":"box","text":"received if the securities were not on loan.","page_number":435,"box":{"x":117,"y":304,"width":318,"height":10}},{"id":"237efa58-07fb-4712-9055-b1ab834d9a7e","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee","page_number":435,"box":{"x":116,"y":335,"width":732,"height":12}},{"id":"3dfe28f0-ec8f-4572-9777-5136298b211d","block_type":"box","text":"based on the amount of cash collateral. The Funds are compensated by any positive difference","page_number":435,"box":{"x":117,"y":351,"width":712,"height":12}},{"id":"00cb7166-704c-4040-a798-25db64e2e2f9","block_type":"box","text":"between the amount earned on the reinvestment of cash collateral and the fee paid to the borrower. In","page_number":435,"box":{"x":117,"y":366,"width":763,"height":12}},{"id":"7a8ad84d-c8a4-48cc-8def-ebca535db1ad","block_type":"box","text":"the case of collateral other than cash, a Fund is compensated by a fee paid by the borrower equal to a","page_number":435,"box":{"x":116,"y":382,"width":765,"height":12}},{"id":"504e4570-d5f1-467a-a6bf-2c63990d6a92","block_type":"box","text":"percentage of the market value of the loaned securities. Any cash collateral received by the Fund for","page_number":435,"box":{"x":117,"y":397,"width":750,"height":12}},{"id":"1a3e88eb-0bd1-44c3-943d-3275a350f9a1","block_type":"box","text":"such loans, and uninvested cash, may be reinvested in certain short-term instruments either directly on","page_number":435,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"61a6d464-7223-44a0-a9d6-5d4c17a7e7dd","block_type":"box","text":"behalf of the Fund or through one or more joint accounts or money market funds, including those","page_number":435,"box":{"x":117,"y":428,"width":722,"height":12}},{"id":"56733565-31a5-4c47-96ee-f3bb79c578d1","block_type":"box","text":"affiliated with BlackRock; such investments are subject to investment risk.","page_number":435,"box":{"x":116,"y":444,"width":553,"height":12}},{"id":"8955bcd5-f12f-4e20-bdb1-d5ef35209052","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":435,"box":{"x":116,"y":475,"width":589,"height":12}},{"id":"61dc80cc-eb54-4903-85b8-005fcc0bb4ae","block_type":"box","text":"i.e.","page_number":435,"box":{"x":706,"y":475,"width":21,"height":9}},{"id":"0a269418-a640-444f-9ea5-c1c2d5ef51cb","block_type":"box","text":", the risk of losses","page_number":435,"box":{"x":730,"y":475,"width":138,"height":11}},{"id":"5fe587c0-5d58-4aa8-a5ae-7e48e41e55fb","block_type":"box","text":"resulting from problems in the settlement and accounting process), “gap” risk (","page_number":435,"box":{"x":117,"y":490,"width":580,"height":12}},{"id":"d5c7ef87-78e3-4989-8456-7da3393d4183","block_type":"box","text":"i.e.","page_number":435,"box":{"x":698,"y":490,"width":21,"height":10}},{"id":"dfb398e1-229a-4130-b030-e6696c27618b","block_type":"box","text":", the risk of a","page_number":435,"box":{"x":722,"y":490,"width":100,"height":11}},{"id":"f4358e40-ba07-4b96-a724-f26cfdf1b572","block_type":"box","text":"mismatch between the return on cash collateral reinvestments and the fees each Fund has agreed to","page_number":435,"box":{"x":117,"y":506,"width":755,"height":12}},{"id":"8e724d6f-986f-4336-abd9-aa9a7b555d35","block_type":"box","text":"pay a borrower), foreign exchange risk (","page_number":435,"box":{"x":117,"y":521,"width":296,"height":12}},{"id":"7f353ccd-5d4f-4aae-b466-527907fb5aa9","block_type":"box","text":"i.e.","page_number":435,"box":{"x":414,"y":521,"width":20,"height":10}},{"id":"13987f57-2609-45a0-a7ed-d816d873ebcc","block_type":"box","text":", the risk of a shortfall at default when a cash collateral","page_number":435,"box":{"x":437,"y":521,"width":409,"height":11}},{"id":"624ddebc-bcea-434c-886d-441d844acad4","block_type":"box","text":"investment is denominated in a currency other than the currency of the assets being loaned due to","page_number":435,"box":{"x":117,"y":537,"width":735,"height":12}},{"id":"c0819554-93ac-4022-b245-47a09a235ef7","block_type":"box","text":"movements in foreign exchange rates), and credit, legal, counterparty and market risks (including the","page_number":435,"box":{"x":117,"y":552,"width":754,"height":12}},{"id":"e24fbc80-0755-4ec3-a891-506bf9037f81","block_type":"box","text":"risk that market events, including but not limited to corporate actions, could lead a Fund to lend","page_number":435,"box":{"x":117,"y":568,"width":709,"height":12}},{"id":"6f2b3899-6853-4781-8a4b-7c562e7d6439","block_type":"box","text":"securities that are trading at a premium due to increased demand, or to recall loaned securities or to","page_number":435,"box":{"x":116,"y":583,"width":748,"height":12}},{"id":"5e731483-7d7b-4265-b32a-fc5b124c6a74","block_type":"box","text":"lend less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend","page_number":435,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"526ca43a-9c99-40de-a55d-0cfd53f5fba5","block_type":"box","text":"out securities that are subject to a corporate action and commit to the borrower a particular election as","page_number":435,"box":{"x":116,"y":614,"width":764,"height":12}},{"id":"ed5a02eb-9c62-4dda-b7a7-86bb8a303153","block_type":"box","text":"determined by the Fund’s investment adviser, the benefit the Fund would receive in respect of","page_number":435,"box":{"x":116,"y":630,"width":702,"height":12}},{"id":"17771737-7eb4-4af9-9ae0-6ecaf549be91","block_type":"box","text":"committing to such election may or may not be less than the benefit the Fund would have received","page_number":435,"box":{"x":116,"y":645,"width":736,"height":12}},{"id":"c70e6bed-c03e-40e7-9826-bc3225afc174","block_type":"box","text":"from making a different election in such corporate action. If a securities lending counterparty were to","page_number":435,"box":{"x":116,"y":661,"width":743,"height":12}},{"id":"f9a3b02d-c523-4303-8f94-42025b459342","block_type":"box","text":"default, a Fund would be subject to the risk of a possible delay in receiving collateral or in recovering","page_number":435,"box":{"x":116,"y":676,"width":745,"height":12}},{"id":"7fdcc768-0bff-4e80-ab37-866d2ef2d016","block_type":"box","text":"the loaned securities, or to a possible loss of rights in the collateral. In the event a borrower does not","page_number":435,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"092f4d77-f069-4478-8a9f-26f98ec12224","block_type":"box","text":"return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event may","page_number":435,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"f0ab3839-a9ca-4522-b911-b07b1717e229","block_type":"box","text":"be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral","page_number":435,"box":{"x":117,"y":723,"width":763,"height":12}},{"id":"6c352528-d201-434c-8beb-9759abda7bd3","block_type":"box","text":"do not at least equal the value of the loaned security at the time the collateral is liquidated, plus the","page_number":435,"box":{"x":116,"y":738,"width":734,"height":12}},{"id":"afcb5115-4537-4dc7-8e1a-8377ea4c597c","block_type":"box","text":"transaction costs incurred in purchasing replacement securities. This latter event could trigger adverse","page_number":435,"box":{"x":116,"y":754,"width":760,"height":12}},{"id":"d49f79a1-7a63-419d-8db4-3175e6d429c3","block_type":"box","text":"tax consequences for a Fund. A Fund could lose money if its short-term investment of the collateral","page_number":435,"box":{"x":116,"y":769,"width":736,"height":12}},{"id":"0a1319cc-0bb1-467e-a7fd-08cd3c956764","block_type":"box","text":"declines in value over the period of the loan. Substitute payments received by a Fund representing","page_number":435,"box":{"x":116,"y":785,"width":731,"height":12}},{"id":"a6d407bb-a42c-4fa0-964b-b8f5bc53e9b6","block_type":"box","text":"dividends paid on securities loaned out by the Fund will not be considered qualified dividend income,","page_number":435,"box":{"x":116,"y":800,"width":746,"height":12}},{"id":"c542b7a4-201d-4cd0-a747-860c8626e283","block_type":"box","text":"and distributions by the Fund of such substitute payments will not constitute qualified dividend income.","page_number":435,"box":{"x":116,"y":816,"width":759,"height":12}},{"id":"ebec8029-1c53-41f4-85a0-d3bcf6735389","block_type":"box","text":"Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":435,"box":{"x":116,"y":831,"width":741,"height":12}},{"id":"61f91eee-8bd6-4547-8de8-ba3beefbbf06","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and","page_number":435,"box":{"x":117,"y":847,"width":684,"height":12}},{"id":"ca0d4d81-2482-4930-8681-865af1c9a286","block_type":"box","text":"distributions by the Fund of such substitute payments will not be eligible for a 20% deduction currently","page_number":435,"box":{"x":116,"y":862,"width":761,"height":12}},{"id":"2b1de9fc-bb4f-4d1a-89f1-455a8b714c59","block_type":"box","text":"available for ordinary REIT dividends paid to non-corporate shareholders provided certain other","page_number":435,"box":{"x":116,"y":878,"width":713,"height":12}},{"id":"1da9cb25-07fe-4f47-bc47-56b4585f29ab","block_type":"box","text":"II-96","page_number":435,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"7d248342-a2a3-4f40-99fc-df4c9a0c15e5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":435,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"eedfc6e9-ff47-4f7c-a4ad-f630cf22a901","block_type":"box","text":"requirements are satisfied. The securities lending agent will take into account the tax effects on","page_number":436,"box":{"x":117,"y":87,"width":710,"height":12}},{"id":"36590acf-b281-466d-8460-c9a1080f2613","block_type":"box","text":"shareholders caused by these differences in connection with a Fund’s securities lending program.","page_number":436,"box":{"x":116,"y":102,"width":730,"height":13}},{"id":"0a6b2a8e-bfb2-4c56-8e69-26bc7b9c687f","block_type":"box","text":"Substitute payments received on tax-exempt securities loaned out will not be tax-exempt income.","page_number":436,"box":{"x":116,"y":118,"width":727,"height":12}},{"id":"d6f45f48-8dd3-4936-9cbb-16d371abe5ba","block_type":"box","text":"There could also be changes in the status of issuers under applicable laws and regulations, including","page_number":436,"box":{"x":116,"y":134,"width":755,"height":12}},{"id":"81fe975e-3257-4afe-a77e-257c98c82149","block_type":"box","text":"tax regulations, that may impact the regulatory or tax treatment of loaned securities and could, for","page_number":436,"box":{"x":116,"y":149,"width":729,"height":12}},{"id":"96ccfe45-973d-49e9-9df8-422d53f526dd","block_type":"box","text":"example, result in a delay in the payment of dividend equivalent payments owed to a Fund (as","page_number":436,"box":{"x":116,"y":165,"width":704,"height":12}},{"id":"e4cde570-21d2-4ac7-ac9c-3c0eaa9548e7","block_type":"box","text":"permitted by applicable law).","page_number":436,"box":{"x":117,"y":180,"width":217,"height":12}},{"id":"2a59ada0-a1b1-4f4f-b7de-c7c394bb8b11","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":436,"box":{"x":117,"y":211,"width":761,"height":12}},{"id":"1b0e0de4-7344-4457-bdf2-1e819cf5d594","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many securities lending","page_number":436,"box":{"x":116,"y":227,"width":723,"height":12}},{"id":"056780d6-84e7-4f79-8735-9983757caebe","block_type":"box","text":"agreements, terms that delay or restrict the rights of counterparties, such as the Fund, to terminate","page_number":436,"box":{"x":116,"y":242,"width":739,"height":12}},{"id":"f9ef0d44-e56f-488a-8c6b-0d0afba0815f","block_type":"box","text":"such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":436,"box":{"x":116,"y":258,"width":751,"height":12}},{"id":"6e62c41e-0e42-4416-9d25-139e6d7e889a","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution","page_number":436,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"4f0aa79e-3590-45ba-a422-6e3611eafc78","block_type":"box","text":"or insolvency proceedings. It is possible that these requirements, as well as potential additional","page_number":436,"box":{"x":116,"y":289,"width":711,"height":12}},{"id":"d23c7838-af25-44a5-be23-fddefa6d53bd","block_type":"box","text":"government regulation and other developments in the market, could adversely affect the Fund’s ability","page_number":436,"box":{"x":116,"y":304,"width":762,"height":12}},{"id":"0c34dfe6-6a1c-439c-8f89-8bfba102e9c2","block_type":"box","text":"to terminate existing securities lending agreements or to realize amounts to be received under such","page_number":436,"box":{"x":116,"y":320,"width":744,"height":12}},{"id":"39e279e0-d4df-40a8-bce5-d3a5f1465751","block_type":"box","text":"agreements. Prudential regulation may also favor lenders that can provide additional protections, such","page_number":436,"box":{"x":116,"y":335,"width":764,"height":12}},{"id":"f9366795-3895-4cbc-9b52-45bdc136b120","block_type":"box","text":"as liens that are exercisable upon lender default, to bank borrowers. Certain Funds expect to provide","page_number":436,"box":{"x":116,"y":351,"width":754,"height":12}},{"id":"880435ea-a6a8-4c39-95dc-779af351b73b","block_type":"box","text":"additional protections to bank borrowers, where permitted pursuant to a Fund’s investment policies and","page_number":436,"box":{"x":116,"y":366,"width":771,"height":12}},{"id":"2b57cb3c-ad68-4dd1-8d09-960519681988","block_type":"box","text":"if BlackRock believes doing so is in the best interest of the Fund.","page_number":436,"box":{"x":117,"y":382,"width":484,"height":12}},{"id":"08582b79-0627-410b-9801-d1d7f6ffa6ff","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan","page_number":436,"box":{"x":116,"y":413,"width":698,"height":12}},{"id":"1ea52c77-0aac-498e-a6c0-6d44c3ecf9fb","block_type":"box","text":"transaction","page_number":436,"box":{"x":116,"y":428,"width":81,"height":10}},{"id":"5963bb82-b1fc-49a2-b1ae-546d83317506","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information","page_number":436,"box":{"x":204,"y":428,"width":667,"height":12}},{"id":"4ca3f559-8a24-49b2-a0bb-ef8e29ee0f6c","block_type":"box","text":"about securities","page_number":436,"box":{"x":116,"y":444,"width":117,"height":9}},{"id":"f837c38e-6784-49b9-828c-ce506677cb33","block_type":"box","text":"loans entered into in connection with short sales. Compliance with this rule is expected","page_number":436,"box":{"x":239,"y":444,"width":648,"height":12}},{"id":"36616c5d-19cd-4bd9-8d72-26275558ea80","block_type":"box","text":"to be required late 2028, although in response to the outcome of a legal challenge against the rule, the","page_number":436,"box":{"x":116,"y":459,"width":766,"height":12}},{"id":"50d88ff0-91e8-480d-a93a-f199df8bbcc7","block_type":"box","text":"SEC may amend the rule and/or delay the current expected compliance date.","page_number":436,"box":{"x":116,"y":475,"width":580,"height":12}},{"id":"db8ec68f-7bd0-4e0a-9bdf-3fa8575f5c53","block_type":"box","text":"Short Sales.","page_number":436,"box":{"x":117,"y":506,"width":95,"height":9}},{"id":"3a475fe2-44c6-47f4-b799-d472bb688338","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential","page_number":436,"box":{"x":213,"y":506,"width":645,"height":12}},{"id":"72e0a394-a614-48dd-b3e5-7783000d08ed","block_type":"box","text":"declines in value of a portfolio security or to realize appreciation when a security that the Fund does","page_number":436,"box":{"x":116,"y":521,"width":744,"height":12}},{"id":"3b189953-59aa-469c-afb9-115997cc3719","block_type":"box","text":"not own declines in value. Certain Funds have a fundamental investment restriction prohibiting short","page_number":436,"box":{"x":117,"y":537,"width":747,"height":12}},{"id":"481f6c84-a6b5-4c13-9ac5-952f3547f228","block_type":"box","text":"sales of securities unless they are “against-the-box.” In a short sale “against-the-box,” at the time of the","page_number":436,"box":{"x":116,"y":552,"width":771,"height":12}},{"id":"c05f965e-17bb-4d79-afb2-bd75256e2890","block_type":"box","text":"sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no","page_number":436,"box":{"x":116,"y":568,"width":769,"height":12}},{"id":"30f65501-ad86-4c95-80d1-f89873208001","block_type":"box","text":"additional cost. When a Fund makes a short sale, it borrows the security sold short and delivers it to","page_number":436,"box":{"x":116,"y":583,"width":746,"height":12}},{"id":"741a7604-1a32-473e-bb8c-472017327e53","block_type":"box","text":"the broker-dealer through which it made the short sale. A Fund may have to pay a fee to borrow","page_number":436,"box":{"x":116,"y":599,"width":717,"height":12}},{"id":"d6567196-f3f4-4e6c-8e27-0c11362896b9","block_type":"box","text":"particular securities and is often obligated to turn over any payments received on such borrowed","page_number":436,"box":{"x":117,"y":614,"width":719,"height":12}},{"id":"5272b76b-6a5f-432f-8c10-8f15add96f3a","block_type":"box","text":"securities to the lender of the securities.","page_number":436,"box":{"x":116,"y":630,"width":301,"height":9}},{"id":"8b56d24c-b94b-4c37-a445-259a4a7a0778","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker","page_number":436,"box":{"x":116,"y":661,"width":756,"height":12}},{"id":"7398f3bb-305b-49c4-a27c-f1ce6b3dd769","block_type":"box","text":"dealer, usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed.","page_number":436,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"3e2afde8-f65a-4198-bdc5-2578b00bccbe","block_type":"box","text":"With respect to uncovered short positions, a Fund is required to deposit similar collateral with its","page_number":436,"box":{"x":116,"y":692,"width":712,"height":12}},{"id":"09c8ef1c-8ed3-4e5b-9e94-c2c3bcee9104","block_type":"box","text":"custodian, if necessary, to the extent that the value of both collateral deposits in the aggregate is at all","page_number":436,"box":{"x":116,"y":707,"width":757,"height":12}},{"id":"d5724e3e-ba96-4945-abe3-4963c13a238c","block_type":"box","text":"times equal to at least 100% of the current market value of the security sold short. Depending on","page_number":436,"box":{"x":116,"y":723,"width":717,"height":12}},{"id":"9c956f42-0dfc-4c41-80bc-da338871eaad","block_type":"box","text":"arrangements made with the broker-dealer from which the Fund borrowed the security, regarding","page_number":436,"box":{"x":116,"y":738,"width":720,"height":12}},{"id":"0d7121b2-4780-46d2-b878-87e9d94426b5","block_type":"box","text":"payment received by the Fund on such security, a Fund may not receive any payments (including","page_number":436,"box":{"x":117,"y":754,"width":722,"height":12}},{"id":"8c8006dc-b7e0-45c0-9f99-2c4e99e3ec17","block_type":"box","text":"interest) on its collateral deposited with such broker-dealer.","page_number":436,"box":{"x":117,"y":769,"width":437,"height":12}},{"id":"45702ae9-7618-4d8f-b237-b7d8bea79463","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated","page_number":436,"box":{"x":117,"y":800,"width":748,"height":12}},{"id":"5ce5f62b-953e-406c-b9e6-d7d62335a8a0","block_type":"box","text":"with those securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a","page_number":436,"box":{"x":116,"y":816,"width":750,"height":12}},{"id":"fac599f2-6acc-4220-9580-a8033278e473","block_type":"box","text":"result of a short sale if the price of the security increases between the date of the short sale and the","page_number":436,"box":{"x":117,"y":831,"width":743,"height":12}},{"id":"bffbcbc4-b9e3-410c-9fea-0b82bbb7d9f9","block_type":"box","text":"date on which the Fund replaces the borrowed security. As a result, if a Fund makes short sales in","page_number":436,"box":{"x":116,"y":847,"width":735,"height":12}},{"id":"2843376d-3d4a-4a94-8376-849c8b6d88e5","block_type":"box","text":"securities that increase in value, it will likely underperform similar mutual funds that do not make short","page_number":436,"box":{"x":116,"y":862,"width":759,"height":12}},{"id":"ae25f35a-a220-4cac-b547-290f0f7f08fc","block_type":"box","text":"sales in securities. A Fund will realize a gain on a short sale if the security declines in price between","page_number":436,"box":{"x":116,"y":878,"width":746,"height":12}},{"id":"94a7221a-fcc7-4795-b6db-86cd8168c830","block_type":"box","text":"II-97","page_number":436,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"c067b324-4cc3-453f-be62-91701c462b91","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":436,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"be66a2c0-5633-4958-9b89-39e9ca5e8c47","block_type":"box","text":"those dates. There can be no assurance that a Fund will be able to close out a short sale position at","page_number":437,"box":{"x":116,"y":87,"width":747,"height":12}},{"id":"bee66732-d1aa-40bc-98ce-628ebdd16013","block_type":"box","text":"any particular time or at an acceptable price. Although a Fund’s gain is limited to the price at which it","page_number":437,"box":{"x":116,"y":103,"width":750,"height":12}},{"id":"6cd027b0-7621-4c52-bf31-b00efc0cb98b","block_type":"box","text":"sold the security short, its potential loss is limited only by the maximum attainable price of the security,","page_number":437,"box":{"x":116,"y":118,"width":764,"height":12}},{"id":"63906455-5acc-4c81-b003-65269966af60","block_type":"box","text":"less the price at which the security was sold and may, theoretically, be unlimited.","page_number":437,"box":{"x":117,"y":134,"width":603,"height":12}},{"id":"2f18897e-d976-42e9-9df9-a8fe16b75a0e","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":437,"box":{"x":116,"y":168,"width":698,"height":12}},{"id":"ab18b40e-9b65-48ed-be21-a182b6b60e34","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":437,"box":{"x":116,"y":202,"width":756,"height":12}},{"id":"e645c014-99a8-4126-b413-26e3a51af3ee","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “— Derivatives —","page_number":437,"box":{"x":117,"y":217,"width":734,"height":12}},{"id":"a7ff7ec7-69c5-4ff8-b1be-ce1e51e13d91","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":437,"box":{"x":117,"y":233,"width":624,"height":12}},{"id":"b228d69c-c753-44e1-ac0a-8fee0ad42af0","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United","page_number":437,"box":{"x":116,"y":267,"width":712,"height":12}},{"id":"6ecb4a49-72ac-4fd8-9a6a-12fb4bcae892","block_type":"box","text":"Kingdom regulations (under which there are restrictions on net short sales in certain securities). If the","page_number":437,"box":{"x":117,"y":282,"width":755,"height":12}},{"id":"10fa9231-c78b-49c0-bb70-663259bd71e6","block_type":"box","text":"SEC or regulatory authorities in other jurisdictions were to adopt additional restrictions regarding short","page_number":437,"box":{"x":116,"y":298,"width":761,"height":12}},{"id":"d6cda2d4-fb55-4afe-a25a-6563d01a10b7","block_type":"box","text":"sales, they could restrict a Fund’s ability to engage in short sales in certain circumstances, and the","page_number":437,"box":{"x":116,"y":314,"width":736,"height":11}},{"id":"8b5e9664-8b0f-449d-a11b-03de22681205","block_type":"box","text":"Fund may be unable to execute its investment strategy as a result. In response to market events, the","page_number":437,"box":{"x":117,"y":329,"width":753,"height":12}},{"id":"202e721d-9e7d-44ad-87f8-e4df4c9fd82c","block_type":"box","text":"SEC and regulatory authorities in other jurisdictions may adopt (and in certain cases, have adopted)","page_number":437,"box":{"x":116,"y":344,"width":747,"height":12}},{"id":"a31ef233-3d74-48ea-ae98-15dff6e7e233","block_type":"box","text":"bans or other restrictions on short sales of certain securities or on derivatives and other hedging","page_number":437,"box":{"x":117,"y":360,"width":717,"height":12}},{"id":"1931f95e-ed65-4e28-a65c-361512d2f9e6","block_type":"box","text":"instruments used to achieve a similar economic effect. Such bans or other restrictions may make it","page_number":437,"box":{"x":117,"y":375,"width":736,"height":12}},{"id":"3ed65519-4440-49ee-9a91-6855ccb93eee","block_type":"box","text":"impossible for a Fund to execute certain investment strategies and may have a material adverse effect","page_number":437,"box":{"x":117,"y":391,"width":765,"height":12}},{"id":"455a806d-cefb-4250-91e6-ca19efb7cd73","block_type":"box","text":"on the Fund’s ability to generate returns.","page_number":437,"box":{"x":116,"y":407,"width":306,"height":11}},{"id":"515fc3b6-7534-494b-b849-c1676c6b8806","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":437,"box":{"x":117,"y":440,"width":325,"height":12}},{"id":"234c06d4-4306-48a8-a215-ca36781c9f2a","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other","page_number":437,"box":{"x":443,"y":441,"width":411,"height":12}},{"id":"1798eb0c-a53b-4ead-894e-6fa8d4689ea9","block_type":"box","text":"interests issued by special purpose acquisition companies (“SPACs”) or similar special purpose entities","page_number":437,"box":{"x":117,"y":456,"width":770,"height":12}},{"id":"7735ea10-9e29-4454-b85d-046c55cc04a0","block_type":"box","text":"that pool funds to seek potential acquisition opportunities, including the “founder’s” shares and","page_number":437,"box":{"x":116,"y":471,"width":704,"height":13}},{"id":"cf983ecc-616b-4036-a876-ce9b3604bda5","block_type":"box","text":"warrants described below. A SPAC is a publicly traded company that raises investment capital via an","page_number":437,"box":{"x":116,"y":487,"width":755,"height":12}},{"id":"8fa981ae-970b-4475-a18e-b2bc2ee289a7","block_type":"box","text":"IPO for the purpose of identifying and acquiring one or more operating businesses or assets. In","page_number":437,"box":{"x":117,"y":502,"width":711,"height":13}},{"id":"22e6a164-dff7-47cf-8f31-fcf4fea5c06a","block_type":"box","text":"connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s” shares, generally for","page_number":437,"box":{"x":116,"y":518,"width":716,"height":12}},{"id":"32385fe6-5f0c-4383-8310-b2fa9e4a8235","block_type":"box","text":"nominal consideration, and warrants that will result in the sponsors owning a specified percentage","page_number":437,"box":{"x":117,"y":534,"width":731,"height":12}},{"id":"165bd455-04aa-49ee-b7c2-f1040ad4b816","block_type":"box","text":"(typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a","page_number":437,"box":{"x":117,"y":549,"width":740,"height":12}},{"id":"a5469eca-f7ee-4757-9431-652ec1ad3e98","block_type":"box","text":"SPAC conducts an IPO, it has selected a management team but has not yet identified a specific","page_number":437,"box":{"x":116,"y":565,"width":718,"height":12}},{"id":"6083e3ef-8c1d-42cb-ba04-abede3a59240","block_type":"box","text":"acquisition opportunity. Unless and until an acquisition is completed, a SPAC generally invests its","page_number":437,"box":{"x":116,"y":580,"width":728,"height":12}},{"id":"24989c4f-b647-45c5-a89c-3b3d57518710","block_type":"box","text":"assets in U.S. Government securities, money market securities and cash. If an acquisition that meets","page_number":437,"box":{"x":116,"y":596,"width":756,"height":12}},{"id":"f708fc7d-cec8-4dee-acb6-967f0457e760","block_type":"box","text":"the requirements for the SPAC is not completed within a pre-established period of time, the invested","page_number":437,"box":{"x":116,"y":611,"width":749,"height":12}},{"id":"3d3eb228-a3ce-471f-8be0-def8bbdb8779","block_type":"box","text":"funds are returned to the SPAC’s public shareholders, the warrants expire, and the “founder’s” shares","page_number":437,"box":{"x":116,"y":627,"width":761,"height":11}},{"id":"4a47d5cf-1e8e-4f49-9afb-e7eb4f3fd451","block_type":"box","text":"and such warrants become worthless. Because SPACs and similar entities are in essence “blank","page_number":437,"box":{"x":116,"y":642,"width":725,"height":10}},{"id":"e3b27327-842c-42fe-ab8b-9d3bb728fa81","block_type":"box","text":"check” companies without operating histories or ongoing business operations (other than identifying","page_number":437,"box":{"x":116,"y":658,"width":745,"height":12}},{"id":"78f472d9-d0a4-4282-bd1f-a207a349e89c","block_type":"box","text":"and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":437,"box":{"x":116,"y":673,"width":722,"height":12}},{"id":"05628070-3d3c-477b-9206-daf544c6aec7","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable","page_number":437,"box":{"x":117,"y":689,"width":746,"height":12}},{"id":"878760a3-df8b-4b01-9f46-62a5d0dbbd95","block_type":"box","text":"acquisition. There is no guarantee that the SPACs in which a Fund invests will complete an acquisition","page_number":437,"box":{"x":116,"y":704,"width":760,"height":12}},{"id":"d76c047f-5779-44bf-980f-78c87ebde85c","block_type":"box","text":"or that any acquisitions completed by the SPACs in which a Fund invests will be profitable. Some","page_number":437,"box":{"x":116,"y":720,"width":721,"height":12}},{"id":"5474c384-ba96-47bf-a941-35dbd502d053","block_type":"box","text":"SPACs may pursue acquisitions only within certain industries or regions, which may ultimately lead to","page_number":437,"box":{"x":116,"y":735,"width":753,"height":12}},{"id":"1b76be5e-2118-4c54-9204-263a0b5554a0","block_type":"box","text":"an increase in the volatility of their prices following the acquisition. In addition, some of these securities","page_number":437,"box":{"x":116,"y":751,"width":762,"height":12}},{"id":"3b9b2e20-219b-4f78-8f43-e3e92f748379","block_type":"box","text":"may be considered illiquid and/or subject to restrictions on resale.","page_number":437,"box":{"x":117,"y":766,"width":485,"height":12}},{"id":"5ef148c1-2bae-4a83-a8a9-f3fdb0c554f8","block_type":"box","text":"Standby Commitment Agreements.","page_number":437,"box":{"x":117,"y":800,"width":278,"height":12}},{"id":"027dd308-f82d-48e1-9ff6-6b3445dd033d","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated","page_number":437,"box":{"x":402,"y":800,"width":459,"height":12}},{"id":"426ec327-a43b-4c0f-ba71-6832b0eeee24","block_type":"box","text":"period of time, to purchase a stated amount of securities that may be issued and sold to that Fund at","page_number":437,"box":{"x":117,"y":816,"width":746,"height":12}},{"id":"db7602b5-9316-4b88-a479-04e25d4bfc04","block_type":"box","text":"the option of the issuer. The price of the security is fixed at the time of the commitment. At the time of","page_number":437,"box":{"x":116,"y":831,"width":756,"height":12}},{"id":"311370ef-8f5d-418c-abbc-cd023646eb9e","block_type":"box","text":"entering into the agreement, the Fund is paid a commitment fee, regardless of whether or not the","page_number":437,"box":{"x":116,"y":847,"width":725,"height":12}},{"id":"e6045787-0469-4cd0-a895-043dbce3cb11","block_type":"box","text":"security is ultimately issued. A Fund will enter into such agreements for the purpose of investing in the","page_number":437,"box":{"x":116,"y":862,"width":762,"height":12}},{"id":"6b2a01d9-ccb5-42c6-b5fb-06c7dd7eb969","block_type":"box","text":"security underlying the commitment at a price that is considered advantageous to the Fund.","page_number":437,"box":{"x":116,"y":878,"width":685,"height":12}},{"id":"b4d3e30d-b093-4ed1-b564-c5cd900b1b49","block_type":"box","text":"II-98","page_number":437,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"0b850330-f074-494d-b638-0668b61a9cdf","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":437,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"64230ce0-e55b-467f-881b-7a40c2af6d4c","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the","page_number":438,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"1a126529-cc78-4095-bbe9-d7b46cf1838c","block_type":"box","text":"value of the security, if issued, on the delivery date may be more or less than its purchase price. Since","page_number":438,"box":{"x":116,"y":102,"width":764,"height":13}},{"id":"dd400914-f7ad-4569-8ecc-c412585a4d4c","block_type":"box","text":"the issuance of the security underlying the commitment is at the option of the issuer, the Fund may","page_number":438,"box":{"x":116,"y":118,"width":738,"height":12}},{"id":"ae8a4c15-b64a-479e-afca-3dcdf07fef2d","block_type":"box","text":"bear the risk of a decline in the value of such security and may not benefit from an appreciation in the","page_number":438,"box":{"x":117,"y":134,"width":756,"height":12}},{"id":"98f36fd8-2c82-4837-a611-45f29eca2a4b","block_type":"box","text":"value of the security during the commitment period.","page_number":438,"box":{"x":116,"y":149,"width":386,"height":12}},{"id":"4320cb34-7c99-4d89-ba03-b90a3c420dd0","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment","page_number":438,"box":{"x":116,"y":180,"width":756,"height":12}},{"id":"7af1fbcb-a424-4793-9001-fe374bbf58ec","block_type":"box","text":"fee will be recorded on the date on which the security can reasonably be expected to be issued, and the","page_number":438,"box":{"x":116,"y":196,"width":769,"height":12}},{"id":"ccfcb701-dbbc-4c9a-a79c-c9ef1fcd98cf","block_type":"box","text":"value of the security thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the","page_number":438,"box":{"x":116,"y":211,"width":765,"height":12}},{"id":"8310644a-d7ea-4cd2-9fcf-0164fdb32825","block_type":"box","text":"security will be adjusted by the amount of the commitment fee. In the event the security is not issued,","page_number":438,"box":{"x":116,"y":227,"width":748,"height":12}},{"id":"3d32a039-bda6-49a1-b9ed-38b6db95485e","block_type":"box","text":"the commitment fee will be recorded as income on the expiration date of the standby commitment.","page_number":438,"box":{"x":116,"y":242,"width":727,"height":12}},{"id":"1fc5f3d8-bc71-4c0e-8e4e-57345eca9f79","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the","page_number":438,"box":{"x":116,"y":273,"width":744,"height":12}},{"id":"9fcbae5b-6d97-4c32-991c-9ee81d98c534","block_type":"box","text":"Manager’s or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby","page_number":438,"box":{"x":117,"y":289,"width":693,"height":12}},{"id":"7a5838fd-fc77-4abc-8f9c-fcd4a8a09634","block_type":"box","text":"commitments solely to facilitate portfolio liquidity and not to exercise its rights thereunder for trading","page_number":438,"box":{"x":116,"y":304,"width":744,"height":12}},{"id":"0712f14b-b247-480d-ac8e-2a97124350d1","block_type":"box","text":"purposes. Standby commitments will be valued at zero in determining NAV. Accordingly, where a Fund","page_number":438,"box":{"x":117,"y":320,"width":769,"height":12}},{"id":"9c31c832-b807-4662-8f08-8fe093685e95","block_type":"box","text":"pays directly or indirectly for a standby commitment, its cost will be reflected as an unrealized loss for","page_number":438,"box":{"x":117,"y":335,"width":756,"height":12}},{"id":"450289a0-fff6-4870-8675-80630d75f2bd","block_type":"box","text":"the period during which the commitment is held by such Fund and will be reflected as a realized gain or","page_number":438,"box":{"x":116,"y":351,"width":771,"height":12}},{"id":"dc0f2d6f-de08-4b54-91cc-45452ecda05e","block_type":"box","text":"loss when the commitment is exercised or expires.","page_number":438,"box":{"x":117,"y":366,"width":380,"height":12}},{"id":"a7534d09-8d61-4f93-854e-9dc7b160fd73","block_type":"box","text":"Stripped Securities.","page_number":438,"box":{"x":117,"y":397,"width":152,"height":12}},{"id":"ef14aed4-a9b1-4605-930e-b03cd6b9b939","block_type":"box","text":"Stripped securities are created when the iss","page_number":438,"box":{"x":270,"y":397,"width":324,"height":12}},{"id":"35730aa1-71ff-4e7b-853d-a50911f72f46","block_type":"box","text":"uer separates the interest and principal","page_number":438,"box":{"x":595,"y":397,"width":288,"height":12}},{"id":"d94e5ad5-76db-402f-8ef3-38750585da70","block_type":"box","text":"components of an instrument and sells them as separate","page_number":438,"box":{"x":116,"y":413,"width":418,"height":12}},{"id":"95dbf2a1-4e54-4508-8210-b05e65a3c1a3","block_type":"box","text":"securities. In general, one security is entitled to","page_number":438,"box":{"x":535,"y":413,"width":345,"height":12}},{"id":"41fc7714-a01d-4789-ac06-4bdc4dcbca4e","block_type":"box","text":"receive the interest payments on the underlying assets","page_number":438,"box":{"x":117,"y":428,"width":401,"height":12}},{"id":"22acf555-04fb-4c85-9cfd-3c2d615d2587","block_type":"box","text":"(the interest only or “IO” security) and the other to","page_number":438,"box":{"x":519,"y":428,"width":364,"height":12}},{"id":"8ffcfa59-af7d-42d3-ad99-3d5808e5e650","block_type":"box","text":"receive the principal payments (the principal only or","page_number":438,"box":{"x":117,"y":444,"width":378,"height":12}},{"id":"20cc2d00-361e-4a26-9a99-ea81abbd106d","block_type":"box","text":"“PO” security). Some stripped","page_number":438,"box":{"x":496,"y":444,"width":221,"height":12}},{"id":"2044442b-9afd-462e-ab0c-8c42be070d47","block_type":"box","text":"securities may receive","page_number":438,"box":{"x":717,"y":444,"width":167,"height":12}},{"id":"a63936a6-f5b3-481d-bed2-a7723b38c7c8","block_type":"box","text":"a combination of interest and principal payments. The","page_number":438,"box":{"x":116,"y":459,"width":395,"height":12}},{"id":"dc90d403-79dd-40c9-954a-9e2495da1531","block_type":"box","text":"yields to maturity on IOs and POs are sensitive to","page_number":438,"box":{"x":511,"y":459,"width":365,"height":12}},{"id":"c4510add-00d1-45eb-8c73-b52899c2ffc0","block_type":"box","text":"the expected or anticipated rate of principal paym","page_number":438,"box":{"x":116,"y":475,"width":358,"height":12}},{"id":"8623d0a4-f9ca-43cb-a8a2-9859a5a876ad","block_type":"box","text":"ents (including prepayments)","page_number":438,"box":{"x":476,"y":475,"width":209,"height":12}},{"id":"bec0db22-7583-41ad-a549-6308a9de5153","block_type":"box","text":"on the related underlying","page_number":438,"box":{"x":686,"y":475,"width":191,"height":12}},{"id":"6c3b5d0e-0cb5-43b9-9042-035a4f75e461","block_type":"box","text":"assets, and principal payments may have a material e","page_number":438,"box":{"x":116,"y":490,"width":392,"height":12}},{"id":"97569c6b-0ae9-4d5c-89f1-bcbf0eddaef3","block_type":"box","text":"ffect on yield to maturity. If the underlying assets","page_number":438,"box":{"x":508,"y":490,"width":357,"height":12}},{"id":"b7197af4-7c07-4c62-96c5-cbf750467587","block_type":"box","text":"experience greater than anticipated","page_number":438,"box":{"x":116,"y":506,"width":262,"height":12}},{"id":"3a0933e3-394a-4dc8-b3dc-aa6e912cdf46","block_type":"box","text":"prepayments of principal, a Fund may not fully recoup its initial","page_number":438,"box":{"x":379,"y":506,"width":458,"height":12}},{"id":"24f6f029-7708-4dfb-8f9e-5fb4a43a5e99","block_type":"box","text":"investment in IOs. Conversely, if the underlying a","page_number":438,"box":{"x":117,"y":521,"width":356,"height":12}},{"id":"d8175c9c-d5a5-4447-b034-4cda7118c893","block_type":"box","text":"ssets experience less than anticipated prepayments of","page_number":438,"box":{"x":474,"y":521,"width":400,"height":12}},{"id":"6e774176-8fb7-4459-8487-1e81e6c7e6c2","block_type":"box","text":"principal, the yield on POs could be adversely affect","page_number":438,"box":{"x":117,"y":537,"width":376,"height":12}},{"id":"c7b5efb9-659a-48f4-80a7-f51716c40377","block_type":"box","text":"ed. Stripped securities may be highly sensitive to","page_number":438,"box":{"x":494,"y":537,"width":359,"height":12}},{"id":"b575a64c-1230-4dd8-b77f-fbb2c66f66d1","block_type":"box","text":"changes in interest rates and rates of prepayment.","page_number":438,"box":{"x":116,"y":552,"width":371,"height":12}},{"id":"6c7bc76a-b9b7-4084-9f5f-becf060d5410","block_type":"box","text":"Structured Notes.","page_number":438,"box":{"x":117,"y":583,"width":139,"height":10}},{"id":"aa17d511-5b1c-469c-8344-db4ebf9d5539","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally","page_number":438,"box":{"x":257,"y":583,"width":621,"height":12}},{"id":"4de1c916-6b0c-493b-855e-2ed0ede0efe3","block_type":"box","text":"privately negotiated debt obligations where the principal and/or interest is determined by reference to","page_number":438,"box":{"x":117,"y":599,"width":753,"height":12}},{"id":"6529a0a0-6f58-42b5-b46b-68c2a0631658","block_type":"box","text":"the performance of a specific asset, benchmark asset, market or interest rate (“reference measure”).","page_number":438,"box":{"x":116,"y":614,"width":751,"height":12}},{"id":"b9622811-8048-4743-9ae9-f964bdc05b7f","block_type":"box","text":"Issuers of structured notes generally include corporations and banks. The interest rate or the principal","page_number":438,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"c3b68f21-2a90-4c2d-bde6-e7ce77947243","block_type":"box","text":"amount payable upon maturity or redemption may increase or decrease, depending upon changes in","page_number":438,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"26c887fc-0af0-47d1-a060-399d3673596a","block_type":"box","text":"the value of the reference measure. The terms of a structured note may provide that, in certain","page_number":438,"box":{"x":116,"y":661,"width":702,"height":12}},{"id":"4c6b19e6-9eaa-446f-9c69-4fe9e44dfa7a","block_type":"box","text":"circumstances, no principal is due at maturity and, therefore, may result in a loss of invested capital by","page_number":438,"box":{"x":116,"y":676,"width":761,"height":12}},{"id":"5f8903b2-7e1b-4d0e-a040-8ec8102a685f","block_type":"box","text":"a Fund. The interest and/or principal payments that may be made on a structured product may vary","page_number":438,"box":{"x":116,"y":692,"width":738,"height":12}},{"id":"63c043c6-0529-4629-bafb-05e647d386b3","block_type":"box","text":"widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":438,"box":{"x":116,"y":707,"width":664,"height":12}},{"id":"20669c7b-5e36-4fe9-ae46-3f8cdde73813","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure","page_number":438,"box":{"x":116,"y":738,"width":765,"height":12}},{"id":"10a76bfc-7239-4693-a4f2-4f57f173d7f6","block_type":"box","text":"may produce an increase or a decrease in the interest rate or the value of the principal at maturity. The","page_number":438,"box":{"x":117,"y":754,"width":763,"height":12}},{"id":"60a2f9cf-cb3b-4e7f-82bf-a65c909d52ea","block_type":"box","text":"rate of return on structured notes may be determined by applying a multiplier to the performance or","page_number":438,"box":{"x":117,"y":769,"width":735,"height":12}},{"id":"82a40ea0-aa24-4d5c-9d75-66d761ebcc2b","block_type":"box","text":"differential performance of reference measures. Application of a multiplier involves leverage that will","page_number":438,"box":{"x":116,"y":785,"width":741,"height":12}},{"id":"2a7227f8-14b7-4c3c-897f-a257e3a04928","block_type":"box","text":"serve to magnify the potential for gain and the risk of loss.","page_number":438,"box":{"x":116,"y":800,"width":429,"height":12}},{"id":"05239a4b-7fbe-4226-9067-b56dbdea555c","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured","page_number":438,"box":{"x":116,"y":831,"width":722,"height":12}},{"id":"81bf50ac-21f4-45cc-95a4-191e4c9520ef","block_type":"box","text":"product. Structured notes may also be more volatile, less liquid, and more difficult to price accurately","page_number":438,"box":{"x":117,"y":847,"width":750,"height":12}},{"id":"7b468755-e07c-4913-b098-892d21a55617","block_type":"box","text":"than less complex securities and instruments or more traditional debt securities. The secondary market","page_number":438,"box":{"x":116,"y":862,"width":770,"height":12}},{"id":"6973f520-7bf3-420b-8281-bef02ded043d","block_type":"box","text":"for structured notes could be illiquid making them difficult to sell when the Fund determines to sell","page_number":438,"box":{"x":116,"y":878,"width":729,"height":12}},{"id":"0f1a689a-0fda-4391-b2c7-641ce6c40c5a","block_type":"box","text":"II-99","page_number":438,"box":{"x":484,"y":909,"width":32,"height":9}},{"id":"3b3851fa-d5e0-477b-bd94-68ddf0e694f5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":438,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3a3edc40-3fb6-403a-870d-1cffc49231d9","block_type":"box","text":"them. The possible lack of a liquid secondary market for structured notes and the resulting inability of","page_number":439,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"3c53a32b-9bba-44b8-8c2e-11c4d28f197f","block_type":"box","text":"the Fund to sell a structured note could expose the Fund to losses and could make structured notes","page_number":439,"box":{"x":116,"y":103,"width":746,"height":11}},{"id":"63d12f50-48cf-4fdb-8537-22107fd59376","block_type":"box","text":"more difficult for the Fund to value accurately.","page_number":439,"box":{"x":117,"y":118,"width":344,"height":12}},{"id":"f2b3cda5-ac62-467e-bf02-a158d45c1bc2","block_type":"box","text":"Taxability Risk.","page_number":439,"box":{"x":118,"y":149,"width":119,"height":12}},{"id":"115a0287-ecb9-4aad-a46f-ec37062dd511","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to","page_number":439,"box":{"x":238,"y":149,"width":555,"height":12}},{"id":"f89cac2b-dbc6-4a4c-9baf-707277beea33","block_type":"box","text":"shareholders by investing in tax-exempt or municipal securities in reliance at the time of purchase on","page_number":439,"box":{"x":116,"y":165,"width":753,"height":12}},{"id":"23e91498-9794-440b-8125-360cf88e3a1f","block_type":"box","text":"an opinion of bond counsel to the issuer and, in the case of derivative securities, sponsors’ counsel,","page_number":439,"box":{"x":116,"y":180,"width":745,"height":12}},{"id":"48e6ecd5-6637-4bbb-add2-f7ee9bca3b5b","block_type":"box","text":"that the interest paid on those securities will be excludable from gross income for U.S. federal income","page_number":439,"box":{"x":116,"y":196,"width":759,"height":12}},{"id":"19ba084e-1dbb-4d62-afc6-e77e8619e15b","block_type":"box","text":"tax purposes. Such securities, however, may be determined to pay, or have paid, taxable income","page_number":439,"box":{"x":116,"y":211,"width":726,"height":12}},{"id":"5fbd484c-de8b-44a5-8643-a3296d1b0a50","block_type":"box","text":"subsequent to the Fund’s acquisition of the securities. In that event, the IRS may demand that the","page_number":439,"box":{"x":116,"y":227,"width":731,"height":12}},{"id":"2475d778-af48-4104-b50b-a536ada169f7","block_type":"box","text":"Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to do so,","page_number":439,"box":{"x":117,"y":242,"width":758,"height":12}},{"id":"ff2f5c3f-7c7e-46a5-ba10-990240907cb1","block_type":"box","text":"the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or","page_number":439,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"4c8db7e6-bee1-4033-8a91-b9702da11d79","block_type":"box","text":"to be paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the","page_number":439,"box":{"x":116,"y":273,"width":724,"height":12}},{"id":"b3a2c7e9-6d47-4a8c-b0b3-74d1438aec86","block_type":"box","text":"Fund’s shareholders to increased U.S. federal income tax liabilities. If the interest paid on any","page_number":439,"box":{"x":117,"y":289,"width":699,"height":12}},{"id":"7880f59d-d8aa-4df4-92ca-559ceeedc16e","block_type":"box","text":"tax-exempt or municipal security held by the Fund is subsequently determined to be taxable, the Fund","page_number":439,"box":{"x":116,"y":304,"width":762,"height":12}},{"id":"9ebfb09c-68cb-4e60-83df-a60ae6aed8cf","block_type":"box","text":"will dispose of that security as soon as reasonably practicable. In addition, future laws, regulations,","page_number":439,"box":{"x":116,"y":320,"width":738,"height":12}},{"id":"d9c2de5d-8336-4f23-9672-d787b6184020","block_type":"box","text":"rulings or court decisions may cause interest on municipal securities to be subject, directly or indirectly,","page_number":439,"box":{"x":117,"y":335,"width":769,"height":12}},{"id":"2cab970e-7d3f-4810-b336-08acc24052ee","block_type":"box","text":"to U.S. federal income taxation or interest on state municipal securities to be subject to state or local","page_number":439,"box":{"x":116,"y":351,"width":749,"height":12}},{"id":"6aa7c9b6-3f7c-4586-8a9a-03627197a0c6","block_type":"box","text":"income taxation, or the value of state municipal securities to be subject to state or local intangible","page_number":439,"box":{"x":117,"y":366,"width":726,"height":12}},{"id":"4f157771-3a0e-4010-8010-3480229ea031","block_type":"box","text":"personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":439,"box":{"x":117,"y":382,"width":750,"height":12}},{"id":"e4d492cd-187e-41ec-82ff-0ff0d4f6c658","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such","page_number":439,"box":{"x":116,"y":397,"width":721,"height":12}},{"id":"d5130936-647a-4b9d-8873-9f63a3c6e7e4","block_type":"box","text":"securities, and thus the value of an investment in the Fund.","page_number":439,"box":{"x":116,"y":413,"width":444,"height":11}},{"id":"3fbf5356-be54-46a6-b6e2-a322e82af4c7","block_type":"box","text":"Temporary Defensive Measures.","page_number":439,"box":{"x":118,"y":444,"width":255,"height":12}},{"id":"6eb001f0-6629-4953-a359-8893dd36c14b","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse","page_number":439,"box":{"x":374,"y":444,"width":514,"height":12}},{"id":"588794cf-57ed-4886-9f6b-bd273801c7ef","block_type":"box","text":"market, economic, political or other conditions, a Fund may depart from its principal investment","page_number":439,"box":{"x":117,"y":459,"width":709,"height":12}},{"id":"8d65448e-33f5-4087-97d3-2778bbd009a3","block_type":"box","text":"strategies and may invest without limitation in cash, high quality money market instruments, or other","page_number":439,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"9a94d454-091d-476f-8f7c-26796d765d47","block_type":"box","text":"short term investments. Certain Funds may also invest in cash and other such instruments pending","page_number":439,"box":{"x":116,"y":490,"width":741,"height":12}},{"id":"05b38ba7-0aae-47dd-8bfb-b727bd9a5125","block_type":"box","text":"investment or to meet anticipated redemption requests. High quality money market instruments include","page_number":439,"box":{"x":117,"y":506,"width":768,"height":12}},{"id":"4f4dabc1-d55a-46d7-96bb-1293525d765c","block_type":"box","text":"U.S. Government obligations, U.S. Government agency obligations, dollar denominated obligations of","page_number":439,"box":{"x":117,"y":521,"width":758,"height":12}},{"id":"6dbe36e1-81af-4a65-b4ff-31560cbd2407","block_type":"box","text":"foreign issuers, bank obligations, including U.S. subsidiaries and branches of foreign banks, corporate","page_number":439,"box":{"x":116,"y":537,"width":763,"height":12}},{"id":"90bd9ffd-26f3-476d-a371-037ed38cbc61","block_type":"box","text":"obligations, commercial paper, repurchase agreements and obligations of supranational organizations.","page_number":439,"box":{"x":116,"y":552,"width":767,"height":12}},{"id":"b65aaba9-67ca-4165-b47a-e49fd25bef49","block_type":"box","text":"Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":439,"box":{"x":117,"y":568,"width":735,"height":12}},{"id":"8c3cb09c-619b-474d-aedb-028c58c155e5","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s","page_number":439,"box":{"x":116,"y":583,"width":727,"height":12}},{"id":"0c796e16-539c-4c7e-bf64-ea632bb33016","block_type":"box","text":"ability to achieve its investment objective.","page_number":439,"box":{"x":116,"y":599,"width":312,"height":12}},{"id":"0976985e-07a1-44fb-af15-301619567393","block_type":"box","text":"U.S. Government Obligations.","page_number":439,"box":{"x":117,"y":630,"width":236,"height":12}},{"id":"663e0c23-f3fb-4ac9-82e0-98dcd0773a30","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S.","page_number":439,"box":{"x":354,"y":630,"width":510,"height":12}},{"id":"1c122090-3969-46a3-b326-609ea6eca162","block_type":"box","text":"Government and U.S. Government agencies and instrumentalities. Obligations of certain agencies and","page_number":439,"box":{"x":117,"y":645,"width":767,"height":12}},{"id":"724a9036-5f74-430d-9694-4e0646810cb6","block_type":"box","text":"instrumentalities of the U.S. Government are supported by the full faith and credit of the U.S. Treasury.","page_number":439,"box":{"x":117,"y":661,"width":761,"height":12}},{"id":"c3f72453-93ef-4655-94fb-2cf5d243b17e","block_type":"box","text":"Others are supported by the right of the issuer to borrow from the U.S. Treasury; and still others are","page_number":439,"box":{"x":116,"y":676,"width":740,"height":12}},{"id":"aa61e64a-c1f5-46e6-a344-a27d95e92444","block_type":"box","text":"supported only by the credit of the agency or instrumentality issuing the obligation. No assurance can","page_number":439,"box":{"x":116,"y":692,"width":751,"height":12}},{"id":"59c12891-3b09-45f8-a1f1-20bc4d673d6a","block_type":"box","text":"be given that the U.S. Government will provide financial support to U.S. Government-sponsored","page_number":439,"box":{"x":117,"y":707,"width":710,"height":12}},{"id":"5d6a3146-4a6b-4a68-8f16-bf4b8651063d","block_type":"box","text":"instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury and agency securities may","page_number":439,"box":{"x":117,"y":723,"width":757,"height":12}},{"id":"5e3b2c4c-425b-499b-b29c-3bc80acd7a21","block_type":"box","text":"be held by trusts that issue participation certificates (such as Treasury income growth receipts and","page_number":439,"box":{"x":117,"y":738,"width":728,"height":12}},{"id":"7b0e7e34-9fc0-4d38-a2d9-8436b0bd30dd","block_type":"box","text":"certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":439,"box":{"x":116,"y":754,"width":734,"height":12}},{"id":"bda55625-9d3a-4fa3-9bf7-e3c65aa7724b","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or","page_number":439,"box":{"x":116,"y":769,"width":754,"height":12}},{"id":"068505ea-de60-462c-bfd3-79a27aea48c8","block_type":"box","text":"the future principal payments on U.S. Government obligations. These instruments are issued at a","page_number":439,"box":{"x":116,"y":785,"width":721,"height":12}},{"id":"cfa6b471-4acc-42f4-bef4-82d3c2db0182","block_type":"box","text":"discount to their “face value” and may (particularly in the case of stripped mortgage-backed securities)","page_number":439,"box":{"x":116,"y":800,"width":758,"height":12}},{"id":"764186df-37d0-4cb0-bf8f-97c128285ec4","block_type":"box","text":"exhibit greater price volatility than ordinary debt securities because of the manner in which their","page_number":439,"box":{"x":116,"y":816,"width":708,"height":12}},{"id":"30578560-0345-4232-ae52-68c659f01bee","block_type":"box","text":"principal and interest are returned to investors.","page_number":439,"box":{"x":117,"y":831,"width":351,"height":12}},{"id":"20eac00b-43a0-4a8b-a8f6-c87d6ce833db","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S.","page_number":439,"box":{"x":117,"y":862,"width":734,"height":12}},{"id":"adc5aa70-4886-45de-a63f-526c6bea2d15","block_type":"box","text":"Treasury Bills, Treasury Notes and Treasury Bonds and the obligations of the Federal Housing","page_number":439,"box":{"x":116,"y":878,"width":708,"height":12}},{"id":"c0d3ac84-f2d7-4a8b-a2b8-27cdb271cc58","block_type":"box","text":"II-100","page_number":439,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"66afc56e-1c51-4667-b09b-49ca3f5ca18a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":439,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5fbd1ec5-51b0-4edd-83b5-44b942942a7b","block_type":"box","text":"Administration, Farmers Home Administration, Export-Import Bank of the United States, Small","page_number":440,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"535f7966-986c-40ff-bfd7-f32bcac76ad5","block_type":"box","text":"Business Administration, Ginnie Mae, Fannie Mae, Federal Financing Bank, General Services","page_number":440,"box":{"x":117,"y":102,"width":702,"height":13}},{"id":"b70e3725-53b4-435a-af06-7edfd3ce98c1","block_type":"box","text":"Administration, Student Loan Marketing Association, Central Bank for Cooperatives, Federal Home","page_number":440,"box":{"x":116,"y":118,"width":741,"height":12}},{"id":"5f7be6ea-e152-45f1-9f96-4623c9fd0492","block_type":"box","text":"Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm Credit Banks","page_number":440,"box":{"x":117,"y":134,"width":771,"height":11}},{"id":"ba416a6f-8226-4ed2-9868-39ff11bb8fcb","block_type":"box","text":"System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":440,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"4064e0a8-8999-4048-90da-7f88fc3e8a9e","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government","page_number":440,"box":{"x":117,"y":165,"width":717,"height":12}},{"id":"9c750ade-078d-4ac3-af84-bf5bac09c550","block_type":"box","text":"agencies and instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae","page_number":440,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"fd9c7d41-8410-4615-8bde-27e16baee743","block_type":"box","text":"and Freddie Mac.","page_number":440,"box":{"x":116,"y":196,"width":135,"height":9}},{"id":"cfe22f86-63b7-470e-8f56-afdf491a99b9","block_type":"box","text":"U.S. Treasury Obligations.","page_number":440,"box":{"x":117,"y":227,"width":194,"height":12}},{"id":"b9e86379-cef2-44ae-8156-81dda7bbac91","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of","page_number":440,"box":{"x":313,"y":227,"width":548,"height":12}},{"id":"6f31130d-7d46-4bcd-8dfb-53be5bc9b5e8","block_type":"box","text":"issuance and other characteristics. Obligations of U.S. Government agencies and authorities are","page_number":440,"box":{"x":117,"y":242,"width":721,"height":12}},{"id":"26299a48-8516-474a-8479-c74c278af674","block_type":"box","text":"supported by varying degrees of credit but generally are not backed by the full faith and credit of the","page_number":440,"box":{"x":116,"y":258,"width":747,"height":12}},{"id":"9839579e-8468-44a0-b305-40a8cf1d74de","block_type":"box","text":"U.S. Government. No assurance can be given that the U.S. Government will provide financial support","page_number":440,"box":{"x":117,"y":273,"width":758,"height":12}},{"id":"c98c1eb0-5204-40a1-8cda-4a7c224af197","block_type":"box","text":"to its agencies and authorities if it is not obligated by law to do so.","page_number":440,"box":{"x":116,"y":289,"width":493,"height":12}},{"id":"f500375a-0f77-4713-95e6-12c8388c4590","block_type":"box","text":"U.S. Treasury Rolls.","page_number":440,"box":{"x":117,"y":320,"width":153,"height":12}},{"id":"b48a494e-e576-42e8-824c-f0fd3a3c0006","block_type":"box","text":"Certain Funds may invest in U.S. Treasury","page_number":440,"box":{"x":271,"y":320,"width":320,"height":12}},{"id":"76d09b8b-0137-4099-ab06-d6976c9e574e","block_type":"box","text":"rolls. In a U.S. Treasury roll transaction,","page_number":440,"box":{"x":592,"y":320,"width":292,"height":12}},{"id":"e25e9e73-1596-4e22-94aa-485c41cf7a6f","block_type":"box","text":"the Fund sells a treasury security to a counterpa","page_number":440,"box":{"x":116,"y":335,"width":350,"height":12}},{"id":"322beeed-46a8-4ebe-a74b-e34327dc3d54","block_type":"box","text":"rty with a simultaneous agreement to repurchase the","page_number":440,"box":{"x":468,"y":335,"width":387,"height":12}},{"id":"e5803b72-fb36-4c53-9fc5-eece32759959","block_type":"box","text":"same security at an agreed upon price and future settl","page_number":440,"box":{"x":116,"y":351,"width":392,"height":12}},{"id":"f82835be-ecbd-45c7-92c2-0584bafcfe00","block_type":"box","text":"ement date. U.S. Treasury roll transactions may","page_number":440,"box":{"x":510,"y":351,"width":353,"height":12}},{"id":"556f0a44-85a2-446c-8003-6ff62cc5cf20","block_type":"box","text":"incrementally adjust the average maturity of a Fund’","page_number":440,"box":{"x":117,"y":366,"width":376,"height":12}},{"id":"f9a9ca60-7b6e-49ca-a504-34aece387915","block_type":"box","text":"s portfolio and increase the interest yield on the","page_number":440,"box":{"x":494,"y":366,"width":348,"height":12}},{"id":"9f9dd44d-fa4d-4caf-b98c-72bb86e2331a","block_type":"box","text":"Fund’s portfolio by extending the average maturity of the portfolio in a normal yield curve environment.","page_number":440,"box":{"x":117,"y":382,"width":746,"height":12}},{"id":"214cea2d-e79f-48e4-966f-befa66c835bb","block_type":"box","text":"During the period before the settlement","page_number":440,"box":{"x":117,"y":397,"width":284,"height":12}},{"id":"ecee0653-cdcb-4d6e-877f-c8f4f58966ab","block_type":"box","text":"date of a U.S. Treasury roll, a","page_number":440,"box":{"x":401,"y":397,"width":224,"height":12}},{"id":"1debd5bf-e07e-4b92-9f34-dbc213cf943a","block_type":"box","text":"Fund continues to earn interest on","page_number":440,"box":{"x":626,"y":397,"width":254,"height":10}},{"id":"04308432-dfb3-434d-84a6-d842f9c2140f","block_type":"box","text":"the securities it is selling; however, it does not earn in","page_number":440,"box":{"x":116,"y":413,"width":387,"height":12}},{"id":"d0abb102-c24d-41b9-8d1a-d79bca6a3f78","block_type":"box","text":"terest on the securities it is purchasing until after the","page_number":440,"box":{"x":504,"y":413,"width":383,"height":12}},{"id":"ffea90b0-4fc8-49ce-8af9-50b9e6f2bc36","block_type":"box","text":"settlement date. A Fund could suffer an opportunity loss","page_number":440,"box":{"x":116,"y":428,"width":412,"height":12}},{"id":"cb00fb10-5567-436e-b59d-47b47923af49","block_type":"box","text":"if the counterparty to the U.S. Treasury roll","page_number":440,"box":{"x":528,"y":428,"width":314,"height":12}},{"id":"b41ea42d-3b8b-45d1-8eca-8f6d3054e370","block_type":"box","text":"transaction failed to perform its obligations on the settlement date.","page_number":440,"box":{"x":116,"y":444,"width":484,"height":12}},{"id":"0a75489e-2bad-43b7-89bf-5ec3a0c53256","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed","page_number":440,"box":{"x":116,"y":475,"width":751,"height":12}},{"id":"3a246e97-78b4-4ab8-b79d-df9997b7f24a","block_type":"box","text":"upon purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be","page_number":440,"box":{"x":117,"y":490,"width":737,"height":12}},{"id":"70b9784c-5d7b-4fc0-878c-8fc378366b3a","block_type":"box","text":"deemed to involve leverage. There is no assurance that U.S. Treasury rolls can be successfully","page_number":440,"box":{"x":116,"y":506,"width":714,"height":12}},{"id":"b70f8a08-7fcd-4735-811e-5b94dbcdc8a1","block_type":"box","text":"employed.","page_number":440,"box":{"x":116,"y":521,"width":82,"height":12}},{"id":"7a4ca43c-3662-4b5a-a31b-d473f24bf650","block_type":"box","text":"Utility Industries.","page_number":440,"box":{"x":117,"y":552,"width":140,"height":12}},{"id":"a05dc926-f2c9-4c4c-9142-60988595ca5c","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an","page_number":440,"box":{"x":259,"y":552,"width":572,"height":12}},{"id":"6864cdb4-64db-49f7-a772-8654d6cd6e78","block_type":"box","text":"adequate return on invested capital, difficulty in financing large construction programs during an","page_number":440,"box":{"x":116,"y":568,"width":715,"height":12}},{"id":"5430b041-7712-4fa0-9d26-53ce6db3192b","block_type":"box","text":"inflationary period, restrictions on operations and increased cost and delays attributable to","page_number":440,"box":{"x":117,"y":583,"width":672,"height":12}},{"id":"3f29e020-3a51-46bd-85be-88c50974cbe7","block_type":"box","text":"environmental considerations and regulation, difficulty in raising capital in adequate amounts on","page_number":440,"box":{"x":116,"y":599,"width":715,"height":12}},{"id":"9a1b7624-5313-4a0c-9193-6d6b6cb6b478","block_type":"box","text":"reasonable terms in periods of high inflation and unsettled capital markets, technological innovations","page_number":440,"box":{"x":117,"y":614,"width":750,"height":12}},{"id":"1644e9e3-904f-4818-a19f-5cb8fc162bc9","block_type":"box","text":"that may render existing plants, equipment or products obsolete, the potential impact of natural or","page_number":440,"box":{"x":116,"y":630,"width":729,"height":12}},{"id":"cc191b5e-ceea-4133-901c-846f0d945521","block_type":"box","text":"man-made disasters, increased costs and reduced availability of certain types of fuel, occasional","page_number":440,"box":{"x":117,"y":645,"width":721,"height":12}},{"id":"91dd24cb-379d-453b-90c5-9a0e67421f15","block_type":"box","text":"reduced availability and high costs of natural gas for resale, the effects of energy conservation, the","page_number":440,"box":{"x":117,"y":661,"width":731,"height":12}},{"id":"62286b9b-18bf-4ba0-906f-29a774e14a3f","block_type":"box","text":"effects of a national energy policy and lengthy delays and greatly increased costs and other problems","page_number":440,"box":{"x":116,"y":676,"width":753,"height":12}},{"id":"2499de8f-62a6-45f0-b09b-1d540fb8c51a","block_type":"box","text":"associated with the design, construction, licensing, regulation and operation of nuclear facilities for","page_number":440,"box":{"x":116,"y":692,"width":730,"height":12}},{"id":"15eadc47-bab3-4461-acd7-1abbbbdcb624","block_type":"box","text":"electric generation, including, among other considerations, the problems associated with the use of","page_number":440,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"e43bb632-e8e1-4fe8-adcf-2cbbe5bc92ea","block_type":"box","text":"radioactive materials and the disposal of radioactive wastes. There are substantial differences among","page_number":440,"box":{"x":117,"y":723,"width":752,"height":12}},{"id":"3182c18a-3730-4570-aa4c-479590fb1207","block_type":"box","text":"the regulatory practices and policies of various jurisdictions, and any given regulatory agency may","page_number":440,"box":{"x":116,"y":738,"width":727,"height":12}},{"id":"96fadc29-9afb-4950-a575-aff380ce3bb5","block_type":"box","text":"make major shifts in policy from time to time. There is no assurance that regulatory authorities will, in","page_number":440,"box":{"x":117,"y":754,"width":746,"height":12}},{"id":"697e7b90-b120-44c1-9376-adad2473b771","block_type":"box","text":"the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":440,"box":{"x":116,"y":769,"width":712,"height":12}},{"id":"bcd3e25f-927c-4582-9e65-28052d6e5be7","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future","page_number":440,"box":{"x":116,"y":785,"width":730,"height":12}},{"id":"dc5311d9-537e-47b8-b24c-b8d55ba2635b","block_type":"box","text":"regulatory legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the","page_number":440,"box":{"x":117,"y":800,"width":765,"height":12}},{"id":"352509a5-3268-4480-9c1d-c48951fd77ea","block_type":"box","text":"issuers of securities held in the Fund’s portfolio may own or operate nuclear generating facilities.","page_number":440,"box":{"x":117,"y":816,"width":714,"height":12}},{"id":"37d87870-4618-49c9-9671-225414078769","block_type":"box","text":"Governmental authorities may from time to time review existing policies and impose additional","page_number":440,"box":{"x":117,"y":831,"width":702,"height":12}},{"id":"c9727936-ffcd-4f03-b734-7b08d29346e8","block_type":"box","text":"requirements governing the licensing, construction and operation of nuclear power plants. Prolonged","page_number":440,"box":{"x":117,"y":847,"width":751,"height":12}},{"id":"c561ea4d-0bb2-402f-a8f6-6606e18f0d7f","block_type":"box","text":"changes in climatic conditions can also have a significant impact on both the revenues of an electric","page_number":440,"box":{"x":116,"y":862,"width":746,"height":12}},{"id":"4103fcc7-608d-483d-8b12-04025a307b61","block_type":"box","text":"and gas utility as well as the expenses of a utility, particularly a hydro-based electric utility.","page_number":440,"box":{"x":116,"y":878,"width":675,"height":12}},{"id":"9918f976-c278-4b1e-85eb-517d8025e7f8","block_type":"box","text":"II-101","page_number":440,"box":{"x":480,"y":909,"width":38,"height":9}},{"id":"5c355426-b024-4696-8b96-85936da35e11","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":440,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0d8b9434-147d-4c0e-aaee-91e5a5446bda","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic","page_number":441,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"51e38e1e-faf1-486f-bc20-69ebf074ab1d","block_type":"box","text":"and international competition, and governmental limitations on rates charged to customers. The value","page_number":441,"box":{"x":116,"y":103,"width":759,"height":12}},{"id":"02f199f8-e4aa-42cd-9d2f-ca60e905da82","block_type":"box","text":"of regulated utility debt securities and, to a lesser extent, equity securities, tends to have an inverse","page_number":441,"box":{"x":116,"y":118,"width":743,"height":12}},{"id":"fc4c7c86-8479-4253-a8e6-3575a56b659a","block_type":"box","text":"relationship to the movement of interest rates and therefore may lead to volatility in performance.","page_number":441,"box":{"x":117,"y":134,"width":723,"height":12}},{"id":"01125801-347b-4921-83f5-259b43aa4b72","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the","page_number":441,"box":{"x":117,"y":165,"width":771,"height":12}},{"id":"e93d3ba0-219c-467a-a004-ea2e12d1c87c","block_type":"box","text":"United States, most utility companies are regulated by state and/or federal authorities. Such regulation","page_number":441,"box":{"x":117,"y":180,"width":764,"height":12}},{"id":"1a2c8a5e-e040-4778-8883-8201b49307ac","block_type":"box","text":"is intended to ensure appropriate standards of service and adequate capacity to meet public demand.","page_number":441,"box":{"x":117,"y":196,"width":759,"height":12}},{"id":"c5cc9878-8b02-41e1-8293-247efc050b7b","block_type":"box","text":"Generally, prices are also regulated in the United States and in foreign countries with the intention of","page_number":441,"box":{"x":117,"y":211,"width":750,"height":12}},{"id":"81aa1058-5e5b-4136-8346-8872e5bd4f82","block_type":"box","text":"protecting the public while ensuring that the rate of return earned by utility companies is sufficient to","page_number":441,"box":{"x":117,"y":227,"width":744,"height":12}},{"id":"b24deb83-5829-4447-a02c-d590ef0581e4","block_type":"box","text":"allow them to attract capital in order to grow and continue to provide appropriate services. There can","page_number":441,"box":{"x":116,"y":242,"width":751,"height":12}},{"id":"b769b177-1ac8-4e32-9dcb-1c47492dc93f","block_type":"box","text":"be no assurance that such pricing policies or rates of return will continue in the future.","page_number":441,"box":{"x":117,"y":258,"width":640,"height":12}},{"id":"f0f44b6d-2f64-4b52-90c2-e158a40b7b16","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in","page_number":441,"box":{"x":116,"y":289,"width":738,"height":12}},{"id":"0af658a3-f33c-429a-a702-d8b919d7014f","block_type":"box","text":"foreign countries. In recent years, changes in regulation in the United States increasingly have allowed","page_number":441,"box":{"x":116,"y":304,"width":767,"height":12}},{"id":"bdf868cf-117d-4f86-a46d-85205a89eeeb","block_type":"box","text":"utility companies to provide services and products outside their traditional geographic areas and lines","page_number":441,"box":{"x":117,"y":320,"width":755,"height":12}},{"id":"89c6efe0-91f5-4cce-bc6c-62ebc8907e41","block_type":"box","text":"of business, creating new areas of competition within the industries. In some instances, utility","page_number":441,"box":{"x":116,"y":335,"width":696,"height":12}},{"id":"9db9a11b-434b-4435-8ad6-d18e77412f39","block_type":"box","text":"companies are operating on an unregulated basis. Because of trends toward deregulation and the","page_number":441,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"81926d8b-0163-4a4c-90c0-6bea38a38748","block_type":"box","text":"evolution of independent power producers as well as new entrants to the field of telecommunications,","page_number":441,"box":{"x":116,"y":366,"width":757,"height":12}},{"id":"8356ac5c-bf53-42fa-8430-6b1d5a80015b","block_type":"box","text":"non-regulated providers of utility services have become a significant part of their respective industries.","page_number":441,"box":{"x":117,"y":382,"width":761,"height":12}},{"id":"c6743dee-b36c-444c-866e-51b61af69d96","block_type":"box","text":"The Manager believes that the emergence of competition and deregulation will result in certain utility","page_number":441,"box":{"x":116,"y":397,"width":750,"height":12}},{"id":"81a1be3d-f211-47e2-a1cc-43bb0debd0d4","block_type":"box","text":"companies being able to earn more than their traditional regulated rates of return, while others may be","page_number":441,"box":{"x":116,"y":413,"width":764,"height":12}},{"id":"0ac85020-171b-441b-b91b-7031fb766550","block_type":"box","text":"forced to defend their core business from increased competition and may be less profitable. Reduced","page_number":441,"box":{"x":116,"y":428,"width":757,"height":12}},{"id":"bc3bb3eb-6495-4383-8f24-d0d18f1a58d9","block_type":"box","text":"profitability, as well as new uses of funds (such as for expansion, operations or stock buybacks) could","page_number":441,"box":{"x":117,"y":444,"width":759,"height":12}},{"id":"aa631dca-77cb-4cbd-bcd8-ca64ca50320a","block_type":"box","text":"result in cuts in dividend payout rates. As deregulation allows utility companies to diversify outside of","page_number":441,"box":{"x":117,"y":459,"width":750,"height":12}},{"id":"5bf34f0b-65a3-419a-9769-6448ccae4d38","block_type":"box","text":"their original geographic regions and their traditional lines of business, utilities companies may engage","page_number":441,"box":{"x":116,"y":475,"width":765,"height":12}},{"id":"0cd7f256-59b2-4769-8b3f-11455ff35c86","block_type":"box","text":"in riskier ventures. Therefore, deregulation may eliminate restrictions on the maximum level of profits of","page_number":441,"box":{"x":117,"y":490,"width":771,"height":12}},{"id":"379a4d82-6d76-4099-b610-c6ba9cc684e2","block_type":"box","text":"certain utility companies, but may also subject these companies to greater risk of loss. The Manager","page_number":441,"box":{"x":116,"y":506,"width":749,"height":12}},{"id":"89b39afb-1c4b-4b3d-b25f-b25045c18306","block_type":"box","text":"seeks to take advantage of favorable investment opportunities that may arise from these structural","page_number":441,"box":{"x":116,"y":521,"width":735,"height":12}},{"id":"db4a8702-08ff-4a29-b77b-d1f3ddd9ad8e","block_type":"box","text":"changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":441,"box":{"x":116,"y":537,"width":747,"height":12}},{"id":"a96a883a-996b-449b-9203-dcd84a21518c","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":441,"box":{"x":117,"y":568,"width":755,"height":12}},{"id":"c06a388a-e2a5-459b-9d95-c9f11ffd9ebb","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by","page_number":441,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"a811b554-5dde-454a-a06e-78caf6b24641","block_type":"box","text":"their respective governments than utilities in the United States and, as in the United States, generally","page_number":441,"box":{"x":116,"y":599,"width":755,"height":12}},{"id":"61a40c8d-91db-4b0d-adf0-026715d8bc35","block_type":"box","text":"are required to seek government approval for rate increases. In addition, many foreign utilities use","page_number":441,"box":{"x":116,"y":614,"width":733,"height":12}},{"id":"1acdc3b4-e7be-4a4b-a2b5-85147a352a95","block_type":"box","text":"fuels that may cause more pollution than those used in the United States, which may require such","page_number":441,"box":{"x":116,"y":630,"width":731,"height":12}},{"id":"0f0c062e-8b60-4533-a797-fb48e03106dc","block_type":"box","text":"utilities to invest in pollution control equipment to meet any proposed pollution restrictions. Foreign","page_number":441,"box":{"x":117,"y":645,"width":733,"height":12}},{"id":"4feb3cc3-5bd1-43b7-86dc-70c67166bfd3","block_type":"box","text":"regulatory systems vary from country to country and may evolve in ways different from regulation in the","page_number":441,"box":{"x":117,"y":661,"width":765,"height":12}},{"id":"d6db092f-8a67-4918-aece-6c3c34e52d03","block_type":"box","text":"United States.","page_number":441,"box":{"x":117,"y":676,"width":103,"height":10}},{"id":"d760642c-7e5a-45a4-a24c-786273236a27","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":441,"box":{"x":116,"y":707,"width":764,"height":12}},{"id":"e1010e7b-28e1-41b3-a424-035191b8d644","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate","page_number":441,"box":{"x":116,"y":723,"width":712,"height":12}},{"id":"33c57218-4e46-4905-807a-b8ad801db4cf","block_type":"box","text":"expansion of capacity in the utility industries in those countries. Although many foreign utility companies","page_number":441,"box":{"x":116,"y":738,"width":762,"height":12}},{"id":"c3324999-b38f-4490-8f27-fa25025a2d50","block_type":"box","text":"currently are government-owned, thereby limiting current investment opportunities for a Fund, the","page_number":441,"box":{"x":116,"y":754,"width":715,"height":12}},{"id":"df2be0b4-6604-4bf8-af57-53525546d002","block_type":"box","text":"Manager believes that, in order to attract significant capital for growth, foreign governments are likely to","page_number":441,"box":{"x":117,"y":769,"width":757,"height":12}},{"id":"a59e4d90-d258-4336-85aa-a80b4ff8c943","block_type":"box","text":"seek global investors through the privatization of their utility industries. Privatization, which refers to the","page_number":441,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"41e93664-e502-4d55-aa41-47824602f31f","block_type":"box","text":"trend toward investor ownership of assets rather than government ownership, is expected to occur in","page_number":441,"box":{"x":116,"y":800,"width":739,"height":12}},{"id":"e8a7da43-aeb2-4df0-8a5d-418626667bab","block_type":"box","text":"newer, faster-growing economies and in mature economies. Of course, there is no assurance that such","page_number":441,"box":{"x":117,"y":816,"width":757,"height":12}},{"id":"ee511a95-409f-44cc-bd77-ed2df2921283","block_type":"box","text":"favorable developments will occur or that investment opportunities in foreign markets will increase.","page_number":441,"box":{"x":116,"y":831,"width":728,"height":12}},{"id":"55b63576-2100-4481-bdd3-0dd6e5ca6f8f","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and","page_number":441,"box":{"x":116,"y":862,"width":732,"height":12}},{"id":"5dab7ccf-bbaa-46d9-84b0-6b2622cf6910","block_type":"box","text":"development in the geographic areas in which they do business. The Manager will take into account","page_number":441,"box":{"x":116,"y":878,"width":747,"height":12}},{"id":"b507e6c7-402e-41e9-ab9a-853153e2cc2e","block_type":"box","text":"II-102","page_number":441,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"0c6a0825-2ff2-4c7e-a3a0-2955eb5f5293","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":441,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f626f4ce-6348-4ee3-b4df-5f727ebc47f0","block_type":"box","text":"anticipated economic growth rates and other economic developments when selecting securities of","page_number":442,"box":{"x":116,"y":87,"width":732,"height":12}},{"id":"9e7bb1f5-b525-4c91-82bf-754fa543f402","block_type":"box","text":"utility companies.","page_number":442,"box":{"x":117,"y":103,"width":132,"height":12}},{"id":"a30bf539-a109-45e2-b9fe-cd81b12442c6","block_type":"box","text":"Electric.","page_number":442,"box":{"x":116,"y":134,"width":58,"height":9}},{"id":"a964018f-5994-4739-ac94-05f9c44994e9","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the","page_number":442,"box":{"x":176,"y":134,"width":630,"height":12}},{"id":"eed134d1-866a-4939-84fa-ff5f31b57904","block_type":"box","text":"generation, transmission and sale of electric energy, although many also provide other energy-related","page_number":442,"box":{"x":116,"y":149,"width":760,"height":12}},{"id":"7aaf461d-e72d-434c-b462-2441fe89f361","block_type":"box","text":"services. In the past, electric utility companies, in general, have been favorably affected by lower fuel","page_number":442,"box":{"x":116,"y":165,"width":754,"height":12}},{"id":"0004ecbf-e2e2-4447-a363-441571b0de8c","block_type":"box","text":"and financing costs and the full or near completion of major construction programs. In addition, many","page_number":442,"box":{"x":116,"y":180,"width":754,"height":12}},{"id":"e2818c63-f93f-4534-8891-d4e0a08cbc0f","block_type":"box","text":"of these companies have generated cash flows in excess of current operating expenses and","page_number":442,"box":{"x":116,"y":196,"width":690,"height":12}},{"id":"9c7c3211-f2cf-4870-b9ae-9ffeb3c436af","block_type":"box","text":"construction expenditures, permitting some degree of diversification into unregulated businesses.","page_number":442,"box":{"x":116,"y":211,"width":727,"height":12}},{"id":"b3966484-de0e-4130-8ef3-87f08ca9823e","block_type":"box","text":"Some electric utilities have also taken advantage of the right to sell power outside of their traditional","page_number":442,"box":{"x":116,"y":227,"width":744,"height":12}},{"id":"dd197565-7296-42e3-b9e1-9ee958337d5d","block_type":"box","text":"geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":442,"box":{"x":116,"y":242,"width":758,"height":12}},{"id":"7c679772-b56e-4874-a98f-12c53e8982b1","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital","page_number":442,"box":{"x":117,"y":258,"width":714,"height":12}},{"id":"101376a8-a86d-4a55-841d-6c321c2c40e6","block_type":"box","text":"construction programs, costs associated with compliance with environmental and safety regulations","page_number":442,"box":{"x":116,"y":273,"width":744,"height":12}},{"id":"9a4943e4-c97a-4ce5-bffb-6e4ed31eb618","block_type":"box","text":"and changes in the regulatory climate. As interest rates declined, many utilities refinanced high cost","page_number":442,"box":{"x":116,"y":289,"width":744,"height":12}},{"id":"7b74d136-39fd-422f-947d-952964dacaac","block_type":"box","text":"debt and in doing so improved their fixed charges coverage. Regulators, however, lowered allowed","page_number":442,"box":{"x":116,"y":304,"width":740,"height":12}},{"id":"686d92ae-7e2c-4a93-83ec-f6297fac4e85","block_type":"box","text":"rates of return as interest rates declined and thereby caused the benefits of the rate declines to be","page_number":442,"box":{"x":117,"y":320,"width":734,"height":12}},{"id":"06c7b504-5d54-4e9b-b54f-8e3de0d204f7","block_type":"box","text":"shared wholly or in part with customers. In a period of rising interest rates, the allowed rates of return","page_number":442,"box":{"x":116,"y":335,"width":754,"height":12}},{"id":"ed42aa14-2254-4f9b-8af2-721b5d8b362b","block_type":"box","text":"may not keep pace with the utilities’ increased costs. The construction and operation of nuclear power","page_number":442,"box":{"x":117,"y":351,"width":760,"height":12}},{"id":"aefcdd37-86e5-4dc3-bf5b-b9232cfda22c","block_type":"box","text":"facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear Regulatory","page_number":442,"box":{"x":116,"y":366,"width":686,"height":12}},{"id":"e39135c6-ff3a-4b6a-a1ca-6955bae93670","block_type":"box","text":"Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in","page_number":442,"box":{"x":117,"y":382,"width":727,"height":12}},{"id":"d2ac1441-5815-4926-9a23-3a195ac32762","block_type":"box","text":"higher operating costs and higher capital expenditures, with the risk that the regulators may disallow","page_number":442,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"efc3ed73-570d-45c9-a144-835f8af3a7f6","block_type":"box","text":"inclusion of these costs in rate authorizations or the risk that a company may not be permitted to","page_number":442,"box":{"x":117,"y":413,"width":719,"height":12}},{"id":"de82c005-29bf-492b-a988-a703558fae39","block_type":"box","text":"operate or complete construction of a facility. In addition, operators of nuclear power plants may be","page_number":442,"box":{"x":116,"y":428,"width":740,"height":12}},{"id":"91ea9a7e-c79e-4529-8726-1f37fcfa5de8","block_type":"box","text":"subject to significant costs for disposal of nuclear fuel and for decommissioning such plants.","page_number":442,"box":{"x":116,"y":444,"width":687,"height":12}},{"id":"0056c098-b082-4a65-a150-260b6c1e57ed","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected","page_number":442,"box":{"x":116,"y":475,"width":766,"height":12}},{"id":"96538da8-70da-4ada-bfdd-eb126bb863fd","block_type":"box","text":"to be impacted to a greater extent in the future by the division of their asset base. Electric utility","page_number":442,"box":{"x":116,"y":490,"width":711,"height":12}},{"id":"be572881-d4bb-4046-bd38-f3029c8a8434","block_type":"box","text":"companies that focus more on the generation of electricity may be assigned less favorable ratings as","page_number":442,"box":{"x":116,"y":506,"width":754,"height":12}},{"id":"5b9e88bc-7f61-4918-b844-ba5a1b65b4f1","block_type":"box","text":"this business is expected to be competitive and the least regulated. On the other hand, companies that","page_number":442,"box":{"x":116,"y":521,"width":768,"height":12}},{"id":"c81941eb-4859-4b42-b1ce-a98fb790f574","block_type":"box","text":"focus on transmission and distribution, which is expected to be the least competitive and the more","page_number":442,"box":{"x":116,"y":537,"width":732,"height":12}},{"id":"d5ce247c-5b33-4911-a830-24569e5d8c8f","block_type":"box","text":"regulated part of the business, may see higher ratings given the greater predictability of cash flow.","page_number":442,"box":{"x":117,"y":552,"width":732,"height":12}},{"id":"8d4b3eaf-a75c-4b64-b4fe-5d7cc9f52eb2","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of","page_number":442,"box":{"x":116,"y":583,"width":715,"height":12}},{"id":"b0edaeb6-ed65-4422-8d37-09b3a09333d9","block_type":"box","text":"competition into the industry as a result of such deregulation has at times resulted in lower revenue,","page_number":442,"box":{"x":116,"y":599,"width":746,"height":12}},{"id":"29165f08-37ef-4887-9e21-73410b50f250","block_type":"box","text":"lower credit ratings, increased default risk, and lower electric utility security prices. Such increased","page_number":442,"box":{"x":117,"y":614,"width":734,"height":12}},{"id":"33f3bdcc-99d1-4d03-9c86-02a63db0f2fb","block_type":"box","text":"competition may also cause long-term contracts, which electric utilities previously entered into to buy","page_number":442,"box":{"x":116,"y":630,"width":752,"height":12}},{"id":"6399f1f2-3055-4de2-a14b-45536e36e4b1","block_type":"box","text":"power, to become “stranded assets” which have no economic value. Any loss associated with such","page_number":442,"box":{"x":117,"y":645,"width":739,"height":12}},{"id":"cd2e2710-563c-4df9-ae80-c3a96ff5b54a","block_type":"box","text":"contracts must be absorbed by ratepayers and investors. In addition, some electric utilities have","page_number":442,"box":{"x":116,"y":661,"width":711,"height":12}},{"id":"e527df63-9291-4281-aaad-c0bd2809ad25","block_type":"box","text":"acquired electric utilities overseas to diversify, enhance earnings and gain experience in operating in a","page_number":442,"box":{"x":116,"y":676,"width":759,"height":12}},{"id":"34cd33a0-0203-461f-9d62-215f0bf979b7","block_type":"box","text":"deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":442,"box":{"x":116,"y":692,"width":746,"height":12}},{"id":"756a3296-da82-4790-a173-e6256ab5011d","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation","page_number":442,"box":{"x":116,"y":707,"width":737,"height":12}},{"id":"477fe694-7be6-4545-9c93-2c7ba9527b21","block_type":"box","text":"proposals will be adopted. However, deregulation in any form could significantly impact the electric","page_number":442,"box":{"x":117,"y":723,"width":731,"height":12}},{"id":"74004966-c15c-479f-828f-01a610bd2981","block_type":"box","text":"utilities industry.","page_number":442,"box":{"x":117,"y":738,"width":117,"height":12}},{"id":"e134fa4c-750b-4c22-a8f4-23292036cc22","block_type":"box","text":"Telecommunications.","page_number":442,"box":{"x":118,"y":769,"width":155,"height":10}},{"id":"7bc62dd4-ac2e-4618-8685-6db1071d49c7","block_type":"box","text":"The telecommunications industry today includes both traditional telephone","page_number":442,"box":{"x":280,"y":769,"width":551,"height":12}},{"id":"80816910-506c-4f9f-81ac-049a5a01507c","block_type":"box","text":"companies, with a history of broad market coverage and highly regulated businesses, and cable","page_number":442,"box":{"x":116,"y":785,"width":712,"height":12}},{"id":"65dd3947-9512-40d9-a8a4-6a4ca75ea30e","block_type":"box","text":"companies, which began as small, lightly regulated businesses focused on limited markets. Today","page_number":442,"box":{"x":116,"y":800,"width":728,"height":12}},{"id":"bec24703-a552-407c-ba06-a5970f4cff49","block_type":"box","text":"these two historically different businesses are converging in an industry that is trending toward larger,","page_number":442,"box":{"x":116,"y":816,"width":751,"height":12}},{"id":"701d3d18-af5e-429a-955b-b48363d1524b","block_type":"box","text":"competitive national and international markets with an emphasis on deregulation. Companies that","page_number":442,"box":{"x":116,"y":831,"width":729,"height":12}},{"id":"3cbc6e94-220b-40c4-9118-4f45b0c3f1c3","block_type":"box","text":"distribute telephone services and provide access to the telephone networks still comprise the greatest","page_number":442,"box":{"x":116,"y":847,"width":760,"height":12}},{"id":"5532f615-bf76-486d-8d1c-cb475b9738b0","block_type":"box","text":"portion of this segment, but non-regulated activities such as wireless telephone services, paging, data","page_number":442,"box":{"x":117,"y":862,"width":759,"height":12}},{"id":"97c68f09-4f86-485c-85ca-947ab7085cdb","block_type":"box","text":"transmission and processing, equipment retailing, computer software and hardware and internet","page_number":442,"box":{"x":116,"y":878,"width":718,"height":12}},{"id":"bf87668a-ef77-49f3-bf3c-4abe98e461bb","block_type":"box","text":"II-103","page_number":442,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"176430b1-2847-4733-a265-cd374b51977d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":442,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"81388d7a-cc32-4b3e-b889-a4197eff33e0","block_type":"box","text":"services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":443,"box":{"x":116,"y":87,"width":759,"height":12}},{"id":"56eaf394-9acf-45e0-af88-981d04e1ce47","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies.","page_number":443,"box":{"x":116,"y":102,"width":752,"height":13}},{"id":"1aa5bb14-4be0-4ff7-ade1-2729eb5a571d","block_type":"box","text":"The presence of unregulated companies in this industry and the entry of traditional telephone","page_number":443,"box":{"x":116,"y":118,"width":696,"height":12}},{"id":"35d28218-cf7f-4818-88b7-ba3fbc14b53b","block_type":"box","text":"companies into unregulated or less regulated businesses provide significant investment opportunities","page_number":443,"box":{"x":116,"y":134,"width":755,"height":12}},{"id":"9cec35ab-5de8-4b42-822e-26005c9aea98","block_type":"box","text":"with companies that may increase their earnings at faster rates than had been allowed in traditional","page_number":443,"box":{"x":116,"y":149,"width":742,"height":12}},{"id":"e58b4860-ead6-47dd-8b10-2a9148cceb38","block_type":"box","text":"regulated businesses. Still, increasing competition, technological innovations and other structural","page_number":443,"box":{"x":117,"y":165,"width":722,"height":12}},{"id":"79fabf76-7bcb-4287-aa4f-58b528107fb1","block_type":"box","text":"changes could adversely affect the profitability of such utilities and the growth rate of their dividends.","page_number":443,"box":{"x":116,"y":180,"width":750,"height":12}},{"id":"98b6e835-a49c-4493-ad7c-698520f92edc","block_type":"box","text":"Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":443,"box":{"x":117,"y":196,"width":725,"height":12}},{"id":"c666bb97-ed70-4c14-a451-2b99ce303392","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility","page_number":443,"box":{"x":116,"y":211,"width":718,"height":12}},{"id":"889a8322-5e8e-4d44-8fc1-801280e198c5","block_type":"box","text":"services to both residential, corporate and governmental customers.","page_number":443,"box":{"x":116,"y":227,"width":511,"height":12}},{"id":"a85af478-d47a-44c1-bf4a-8bc4d0eabb5f","block_type":"box","text":"Gas.","page_number":443,"box":{"x":117,"y":255,"width":32,"height":9}},{"id":"2567deba-340e-4390-ba0b-2fd4a5835576","block_type":"box","text":"Gas transmission companies and gas distribution","page_number":443,"box":{"x":150,"y":255,"width":360,"height":12}},{"id":"4b21169b-c2c8-40ac-af2c-51df6ddcca11","block_type":"box","text":"companies are undergoing significant changes. In","page_number":443,"box":{"x":510,"y":255,"width":359,"height":12}},{"id":"0dff1703-f76a-4dde-97b6-8bf8690194df","block_type":"box","text":"the United States, interstate transmission companies","page_number":443,"box":{"x":116,"y":270,"width":375,"height":12}},{"id":"89c58142-d2e3-45d5-8902-ade16338f280","block_type":"box","text":"are regulated by the Federal Energy Regulatory","page_number":443,"box":{"x":491,"y":271,"width":349,"height":11}},{"id":"1a16897e-afe1-44ce-b03b-43918d646c38","block_type":"box","text":"Commission, which is reducing its regulation of the i","page_number":443,"box":{"x":117,"y":286,"width":366,"height":12}},{"id":"48b5c3d4-c81e-4eed-9942-7e61d4fd5fd6","block_type":"box","text":"ndustry. Many companies have diversified into oil and","page_number":443,"box":{"x":485,"y":286,"width":385,"height":12}},{"id":"376a10d1-ba9a-4804-bf24-584c92ddb08c","block_type":"box","text":"gas exploration and development, making returns more sensitive to energy prices. In the recent decade,","page_number":443,"box":{"x":116,"y":302,"width":744,"height":12}},{"id":"ead3dedc-96b8-42d1-a210-211ea599b227","block_type":"box","text":"gas utility companies have been adversely affected by","page_number":443,"box":{"x":116,"y":317,"width":390,"height":12}},{"id":"8c9cfc1d-76c6-4149-afe7-8d1b4189e034","block_type":"box","text":"disruptions in the oil industry and have also been","page_number":443,"box":{"x":506,"y":317,"width":351,"height":12}},{"id":"a601320b-b4a2-481b-a491-3831b7e83249","block_type":"box","text":"affected by increased concentration and competit","page_number":443,"box":{"x":116,"y":332,"width":350,"height":13}},{"id":"d2f06764-8c25-4a85-acba-d8702cf8af73","block_type":"box","text":"ion. In the opinion of the Manager, however,","page_number":443,"box":{"x":467,"y":332,"width":318,"height":13}},{"id":"ed6fd56e-49cb-42be-be8d-2c5c82bbe429","block_type":"box","text":"environmental considerations could im","page_number":443,"box":{"x":116,"y":348,"width":273,"height":9}},{"id":"35d41814-d011-4a9a-93b7-ac1dd054bdfd","block_type":"box","text":"prove the gas industry outlook in the future. For example, natural gas","page_number":443,"box":{"x":390,"y":348,"width":495,"height":12}},{"id":"f692f98e-a4dc-4dae-b74e-fc21203a40bc","block_type":"box","text":"is the cleanest of the hydrocarbon fuels, and this may result","page_number":443,"box":{"x":117,"y":363,"width":422,"height":13}},{"id":"299c1d97-6208-4a2c-9dc0-ad432e0c1ad2","block_type":"box","text":"t in incremental shifts in fuel consumption toward","page_number":443,"box":{"x":539,"y":363,"width":347,"height":12}},{"id":"f794cde2-cd51-42dd-b49e-01df861c1d92","block_type":"box","text":"natural gas and away from oil and coal, even for electri","page_number":443,"box":{"x":117,"y":379,"width":387,"height":12}},{"id":"9fc5f540-a58a-4317-b1bf-7f6fb594554a","block_type":"box","text":"city generation. However, technological or regulatory","page_number":443,"box":{"x":505,"y":379,"width":379,"height":12}},{"id":"bc5c07f2-609b-4d75-b2d6-b2000758844c","block_type":"box","text":"changes within the industry may delay or prevent this result.","page_number":443,"box":{"x":116,"y":395,"width":430,"height":12}},{"id":"c1aea3da-6a1b-4a99-9525-b5dabd946153","block_type":"box","text":"Water.","page_number":443,"box":{"x":118,"y":423,"width":46,"height":9}},{"id":"19a573ec-ef63-4131-b699-9e2d8dd7b71b","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United","page_number":443,"box":{"x":165,"y":423,"width":706,"height":12}},{"id":"4083044f-a5cd-4ab7-aafb-622b9a0674be","block_type":"box","text":"States and around the world the industry is highly fragmented because most of the supplies are owned","page_number":443,"box":{"x":116,"y":438,"width":768,"height":12}},{"id":"fecd5e64-8938-4aea-94b1-f5ce1cf8000b","block_type":"box","text":"by local authorities. Companies in this industry are generally mature and are experiencing little or no","page_number":443,"box":{"x":117,"y":454,"width":748,"height":12}},{"id":"9e8bacca-b387-4ff4-9cca-c83be2d3fc07","block_type":"box","text":"per capita volume growth. In the opinion of the Manager, there may be opportunities for certain","page_number":443,"box":{"x":117,"y":469,"width":708,"height":12}},{"id":"08062789-6e91-4149-8121-96c4bccb46e5","block_type":"box","text":"companies to acquire other water utility companies and for foreign acquisition of domestic companies.","page_number":443,"box":{"x":116,"y":485,"width":761,"height":12}},{"id":"617ea467-b0c7-4295-af2c-be8dcac880a5","block_type":"box","text":"The Manager believes that favorable investment opportunities may result from consolidation of this","page_number":443,"box":{"x":116,"y":500,"width":738,"height":12}},{"id":"6abc9e53-958e-46b8-9e1b-ce2488713e96","block_type":"box","text":"segment. As with other utilities, however, increased regulation, increased costs and potential","page_number":443,"box":{"x":116,"y":516,"width":693,"height":12}},{"id":"0e5c97a6-a309-4089-9a8d-4040aa4c9f7c","block_type":"box","text":"disruptions in supply may adversely affect investments in water supply utilities.","page_number":443,"box":{"x":116,"y":531,"width":588,"height":12}},{"id":"248af93d-43c3-4a70-99b9-81b28f4f34e1","block_type":"box","text":"Utility Industries Generally.","page_number":443,"box":{"x":117,"y":560,"width":197,"height":12}},{"id":"6305a567-9518-4b6a-9362-48a031d74e77","block_type":"box","text":"There can be no assurance that the positive developments noted above,","page_number":443,"box":{"x":316,"y":560,"width":548,"height":12}},{"id":"15b9ef99-2599-40cb-8711-7cd3fc109ad2","block_type":"box","text":"including those relating to privatization and changing regulation, will occur or that risk factors other than","page_number":443,"box":{"x":117,"y":575,"width":771,"height":12}},{"id":"dd6105fa-8af3-4906-a6b9-d0df53b46f09","block_type":"box","text":"those noted above will not develop in the future.","page_number":443,"box":{"x":116,"y":591,"width":361,"height":12}},{"id":"9593a5e5-d8ee-46a6-be86-03acb2e85264","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":443,"box":{"x":118,"y":619,"width":643,"height":12}},{"id":"a8d36cff-d27c-4853-a122-b70f3bd37ec3","block_type":"box","text":"A Fund may","page_number":443,"box":{"x":762,"y":619,"width":100,"height":12}},{"id":"499700a5-5a32-47a7-b3e2-3c93c046f2cf","block_type":"box","text":"purchase or sell securities that it is entitled to receive on a when-issued basis. A Fund may also","page_number":443,"box":{"x":117,"y":635,"width":713,"height":12}},{"id":"9f914f91-6adc-4fbe-9002-f3dd4e9e5c85","block_type":"box","text":"purchase or sell securities on a delayed delivery basis or through a forward commitment (including on","page_number":443,"box":{"x":117,"y":650,"width":758,"height":12}},{"id":"fa192f1b-1775-42e0-a7a0-54d6aeda59a3","block_type":"box","text":"a TBA (to be announced) basis). These transactions involve the purchase or sale of securities by a","page_number":443,"box":{"x":116,"y":666,"width":734,"height":12}},{"id":"d993d2e0-12e1-4626-bfd5-b2d224e96156","block_type":"box","text":"Fund at an established price with payment and delivery taking place in the future. The Fund enters into","page_number":443,"box":{"x":117,"y":681,"width":762,"height":12}},{"id":"dadf35d9-a44c-4a17-9fab-366fda5da4f2","block_type":"box","text":"these transactions to obtain what is considered an advantageous price to the Fund at the time of","page_number":443,"box":{"x":116,"y":697,"width":717,"height":12}},{"id":"1f3d5e92-5348-4015-be33-679cd643981e","block_type":"box","text":"entering into the transaction.","page_number":443,"box":{"x":116,"y":712,"width":211,"height":12}},{"id":"3046bd40-a43a-4174-8437-a7f645ad51db","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the","page_number":443,"box":{"x":117,"y":740,"width":725,"height":13}},{"id":"ecec70c2-b2d1-4794-a1aa-35b2ab310161","block_type":"box","text":"Federal Reserve Bank of New York, a Fund or its counterparty generally will be required to post","page_number":443,"box":{"x":117,"y":756,"width":710,"height":12}},{"id":"80fe1162-1b6d-49b2-82b7-dac129de794c","block_type":"box","text":"collateral when entering into certain forward-settling transactions, including without limitation TBA","page_number":443,"box":{"x":116,"y":771,"width":722,"height":13}},{"id":"3fd89ba2-f181-4b51-acc5-684d5213d774","block_type":"box","text":"transactions. FINRA rules have also been implemented that include mandatory margin requirements","page_number":443,"box":{"x":116,"y":787,"width":745,"height":12}},{"id":"d8a400b7-e988-4d4d-81fe-97b2aba97ea4","block_type":"box","text":"for the TBA market with limited exceptions. The collateralization of TBA trades is intended to mitigate","page_number":443,"box":{"x":116,"y":802,"width":749,"height":13}},{"id":"166d67b8-2132-4a65-b000-83c1b77c0339","block_type":"box","text":"counterparty credit risk between trade and settlement, but could increase the cost of TBA transactions","page_number":443,"box":{"x":116,"y":818,"width":757,"height":12}},{"id":"f40b041d-80a3-4ef0-8039-beb26bfebaf4","block_type":"box","text":"and impose added operational complexity.","page_number":443,"box":{"x":116,"y":834,"width":320,"height":12}},{"id":"1f5d27bd-199f-425c-9f0a-df781030aceb","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a","page_number":443,"box":{"x":116,"y":862,"width":754,"height":12}},{"id":"32c6632a-802c-4081-9285-e99fb3840706","block_type":"box","text":"security purchased or sold on a delayed delivery basis or through a forward commitment will be","page_number":443,"box":{"x":116,"y":877,"width":713,"height":12}},{"id":"741011e5-8819-455d-8722-186768c09663","block_type":"box","text":"II-104","page_number":443,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"1166720f-642b-47b4-8d4e-3d1996761ac1","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":443,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3d5eadb0-231d-444a-bb50-66d03f8617e6","block_type":"box","text":"delivered. Also, the value of securities in these transactions on the delivery date may be more or less","page_number":444,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"7cb9e8e2-baa9-4059-8ccf-45a5db68b5b1","block_type":"box","text":"than the price paid by the Fund to purchase the securities. The Fund will lose money if the value of the","page_number":444,"box":{"x":116,"y":102,"width":766,"height":13}},{"id":"d7239f76-a8f2-4da6-821f-363bd1932c41","block_type":"box","text":"security in such a transaction declines below the purchase price and will not benefit if the value of the","page_number":444,"box":{"x":116,"y":118,"width":757,"height":12}},{"id":"85818603-eda5-4c75-bf70-62a5bdee6fb9","block_type":"box","text":"security appreciates above the sale price during the commitment period.","page_number":444,"box":{"x":116,"y":134,"width":542,"height":12}},{"id":"36cde5e2-7e88-428b-8a5d-297ce94818f0","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a","page_number":444,"box":{"x":117,"y":165,"width":715,"height":12}},{"id":"75fbeceb-9b76-43e5-b3be-2faaa47a7039","block_type":"box","text":"commitment after it has been entered into, and may sell securities it has committed to purchase before","page_number":444,"box":{"x":116,"y":180,"width":767,"height":12}},{"id":"78b5029d-b32c-4f68-afc2-85e2368657fa","block_type":"box","text":"those securities are delivered to the Fund on the settlement date. In these cases the Fund may realize","page_number":444,"box":{"x":116,"y":196,"width":764,"height":12}},{"id":"dc12fd16-2fde-4f5f-a8d6-7722341fe08c","block_type":"box","text":"a taxable capital gain or loss.","page_number":444,"box":{"x":116,"y":211,"width":221,"height":12}},{"id":"1cb73b17-1db4-401e-a5bf-9448ec078ea8","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other","page_number":444,"box":{"x":116,"y":242,"width":763,"height":12}},{"id":"a3a4a64f-2258-40c4-9e01-bbbc27f662c7","block_type":"box","text":"party to consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss","page_number":444,"box":{"x":117,"y":258,"width":760,"height":12}},{"id":"4c437504-da68-4998-bf79-787a9ba8fc60","block_type":"box","text":"or missing an opportunity to obtain a price considered to be advantageous.","page_number":444,"box":{"x":116,"y":273,"width":561,"height":12}},{"id":"4c6a2117-af33-4516-9276-8de10bc5bd24","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any","page_number":444,"box":{"x":116,"y":304,"width":688,"height":12}},{"id":"cb2866aa-a96b-4b95-9267-cd0f8fd9ae71","block_type":"box","text":"subsequent fluctuations in their market value, is taken into account when determining the market value","page_number":444,"box":{"x":116,"y":320,"width":767,"height":12}},{"id":"f851a6ab-bb97-4623-ae2d-98377a98f41c","block_type":"box","text":"of a Fund starting on the day the Fund agrees to purchase the securities. The Fund does not earn","page_number":444,"box":{"x":116,"y":335,"width":732,"height":12}},{"id":"760a91a7-68f9-4b2d-8496-514712c106b1","block_type":"box","text":"interest on the securities it has committed to purchase until they are paid for and delivered on the","page_number":444,"box":{"x":117,"y":351,"width":725,"height":12}},{"id":"32ee973c-041a-411d-a717-402bb468c82c","block_type":"box","text":"settlement date.","page_number":444,"box":{"x":116,"y":366,"width":124,"height":10}},{"id":"b673849d-752b-43c3-958a-ef56c0fec4f5","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward","page_number":444,"box":{"x":117,"y":397,"width":740,"height":12}},{"id":"460f6e69-88ba-450b-bcf1-45e6c8bddd59","block_type":"box","text":"settling securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls)","page_number":444,"box":{"x":116,"y":413,"width":753,"height":12}},{"id":"425cdcad-6741-4de8-bbb2-821d45207309","block_type":"box","text":"and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior","page_number":444,"box":{"x":116,"y":428,"width":750,"height":12}},{"id":"4bc80274-2df9-49fa-a99e-01117216df21","block_type":"box","text":"securities in Section 18 of the Investment Company Act, provided that the Fund intends to physically","page_number":444,"box":{"x":116,"y":444,"width":750,"height":12}},{"id":"cd86b69f-6da3-4a7d-83c3-8a5fedd71784","block_type":"box","text":"settle the transaction and the transaction will settle within 35 days of its trade date (the “Delayed","page_number":444,"box":{"x":116,"y":459,"width":719,"height":12}},{"id":"d0feb58a-5bc4-4113-b720-d5f6aeb0aa91","block_type":"box","text":"Settlement Securities Provision”). If a when-issued, forward-settling or non-standard settlement cycle","page_number":444,"box":{"x":116,"y":475,"width":754,"height":12}},{"id":"6b59ce4d-d012-4637-bff2-0fcd19238443","block_type":"box","text":"security does not satisfy the Delayed-Settlement Securities Provision, then it is treated as a Derivatives","page_number":444,"box":{"x":116,"y":490,"width":771,"height":12}},{"id":"d923bb34-e121-4e4d-a44b-11a15dd149b1","block_type":"box","text":"Transaction under Rule 18f-4. See “— Derivatives — Regulation of Derivatives — Rule 18f-4 under the","page_number":444,"box":{"x":116,"y":506,"width":770,"height":12}},{"id":"2a85533c-e3d9-440d-9728-590802dec558","block_type":"box","text":"Investment Company Act” above.","page_number":444,"box":{"x":117,"y":521,"width":252,"height":12}},{"id":"ced0eaed-5ae8-475d-9451-f8c89cb2e0f0","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and","page_number":444,"box":{"x":117,"y":552,"width":761,"height":12}},{"id":"7e6b5006-2ead-4bd7-bb75-e434eada5b5d","block_type":"box","text":"certain of their affiliates to include in certain financial contracts, including many agreements with","page_number":444,"box":{"x":116,"y":568,"width":716,"height":12}},{"id":"dfa7bc5a-76e5-4557-80fd-801e37cc04d3","block_type":"box","text":"respect to when-issued, TBA and forward commitment transactions, terms that delay or restrict the","page_number":444,"box":{"x":117,"y":583,"width":736,"height":12}},{"id":"600721fc-d181-479c-870b-6ea3b72913dd","block_type":"box","text":"rights of counterparties, such as a Fund, to terminate such agreements, foreclose upon collateral,","page_number":444,"box":{"x":117,"y":599,"width":728,"height":12}},{"id":"e427d2bf-514e-4502-984d-5e357c5bd61d","block_type":"box","text":"exercise other default rights or restrict transfers of credit support in the event that the counterparty and/","page_number":444,"box":{"x":116,"y":614,"width":766,"height":12}},{"id":"4d6a4963-7321-4d8b-aab5-d03f050cd28a","block_type":"box","text":"or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that","page_number":444,"box":{"x":116,"y":630,"width":744,"height":12}},{"id":"d13e650b-b209-49e9-a231-d91dec4dd8e0","block_type":"box","text":"these requirements, as well as potential additional government regulation and other developments in","page_number":444,"box":{"x":116,"y":645,"width":752,"height":12}},{"id":"1b5624b8-8806-4b0b-ab91-47f6a39574b0","block_type":"box","text":"the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":444,"box":{"x":116,"y":661,"width":730,"height":12}},{"id":"a6d17488-22f0-4375-8524-7ac03a809e6b","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":444,"box":{"x":116,"y":676,"width":593,"height":12}},{"id":"167ad2a8-1f35-4a1f-894f-a87bcdc13902","block_type":"box","text":"Yields and Ratings.","page_number":444,"box":{"x":118,"y":707,"width":152,"height":12}},{"id":"38ff5cc8-7ae4-4da7-afbb-32b9cdc89cd8","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including","page_number":444,"box":{"x":276,"y":707,"width":594,"height":12}},{"id":"6efa0433-0898-411b-811f-f70694c73188","block_type":"box","text":"general market conditions, conditions in the particular market for the obligation, the financial condition","page_number":444,"box":{"x":116,"y":723,"width":753,"height":12}},{"id":"160e370d-8a92-483c-b998-72e2483b4ec4","block_type":"box","text":"of the issuer, the size of the offering, the maturity of the obligation and the ratings of the issue. The","page_number":444,"box":{"x":116,"y":738,"width":732,"height":12}},{"id":"8d3e4064-038a-42d6-90a8-2c3e411397d8","block_type":"box","text":"ratings of Moody’s, Fitch and S&P represent their respective opinions as to the quality of the","page_number":444,"box":{"x":117,"y":754,"width":683,"height":12}},{"id":"7c0f69bf-7fe3-44d8-a5bd-9d62f1f3b766","block_type":"box","text":"obligations they undertake to rate. Ratings, however, are general and are not absolute standards of","page_number":444,"box":{"x":116,"y":769,"width":739,"height":12}},{"id":"be321b51-e793-4463-870c-1af5e2fbe0e8","block_type":"box","text":"quality. Consequently, obligations with the same rating, maturity and interest rate may have different","page_number":444,"box":{"x":116,"y":785,"width":744,"height":12}},{"id":"6a58b59a-4b99-4b49-aecb-7495a7f334cb","block_type":"box","text":"market prices. Subsequent to its purchase by a Fund, a rated security may cease to be rated. A Fund’s","page_number":444,"box":{"x":117,"y":800,"width":764,"height":12}},{"id":"e4734408-de54-4373-9e6d-74c42f2523a9","block_type":"box","text":"Manager or sub-adviser will consider such an event in determining whether the Fund should continue","page_number":444,"box":{"x":117,"y":816,"width":750,"height":12}},{"id":"72f81e88-00ce-4540-afef-04f16ddf1f8d","block_type":"box","text":"to hold the security.","page_number":444,"box":{"x":116,"y":831,"width":150,"height":12}},{"id":"dc838106-2561-4ff0-983e-cbdcbbf4b455","block_type":"box","text":"Zero Coupon Securities.","page_number":444,"box":{"x":116,"y":862,"width":193,"height":12}},{"id":"b3aa6880-ed6a-4578-b5d3-68334488d348","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value","page_number":444,"box":{"x":310,"y":862,"width":575,"height":12}},{"id":"ddd034ea-f21b-44e1-8482-508a32bd1182","block_type":"box","text":"and do not pay interest during the life of the security. The discount approximates the total amount of","page_number":444,"box":{"x":116,"y":878,"width":747,"height":12}},{"id":"a04fa134-9c7e-4355-a378-a60fc78fafb2","block_type":"box","text":"II-105","page_number":444,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"94dfbb45-9050-4b7f-94de-fdbcba1d3454","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":444,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1ba96d39-ad76-4f81-a9fd-3aaba4c5c4b1","block_type":"box","text":"interest the security will accrue and compound over the period until maturity at a rate of interest","page_number":445,"box":{"x":117,"y":87,"width":711,"height":12}},{"id":"242a747f-ff9b-42f7-8d1d-3a3de3064ef9","block_type":"box","text":"reflecting the market rate of the security at the time of issuance. Upon maturity, the holder of a zero","page_number":445,"box":{"x":117,"y":102,"width":741,"height":13}},{"id":"ec35321a-dc8d-4bc7-803f-94b605f1c181","block_type":"box","text":"coupon security is entitled to receive the par value of the security.","page_number":445,"box":{"x":116,"y":118,"width":492,"height":12}},{"id":"a634c4a2-6833-4399-b498-611cb3eed061","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to","page_number":445,"box":{"x":116,"y":149,"width":740,"height":12}},{"id":"d80468c8-8315-48f7-8156-bd42d358ea1b","block_type":"box","text":"have received income (“phantom income”) annually, notwithstanding that cash may not be received","page_number":445,"box":{"x":117,"y":165,"width":742,"height":12}},{"id":"7b9d0265-765a-40d9-b9db-4257577d4d09","block_type":"box","text":"currently. The effect of owning instruments that do not make current interest payments is that a fixed","page_number":445,"box":{"x":116,"y":180,"width":751,"height":12}},{"id":"d71aa725-a63c-4d78-a01d-8ac023d31ecc","block_type":"box","text":"yield is earned not only on the original investment but also, in effect, on all discount accretion during","page_number":445,"box":{"x":116,"y":196,"width":746,"height":12}},{"id":"503de712-d7f2-4234-8214-3e1719ada539","block_type":"box","text":"the life of the obligations. This implicit reinvestment of earnings at a fixed rate eliminates the risk of","page_number":445,"box":{"x":116,"y":211,"width":737,"height":12}},{"id":"ad548ff8-1ee5-40ff-a335-90f0bd5dbd74","block_type":"box","text":"being unable to invest distributions at a rate as high as the implicit yield on the zero coupon bond, but","page_number":445,"box":{"x":117,"y":227,"width":757,"height":12}},{"id":"732ee351-e89d-4898-88e2-0a3c00e5de28","block_type":"box","text":"at the same time eliminates the holder’s ability to reinvest at higher rates in the future. For this reason,","page_number":445,"box":{"x":116,"y":242,"width":764,"height":12}},{"id":"e2bfc773-05ee-452c-8dcc-b45481206c58","block_type":"box","text":"some of these securities may be subject to substantially greater price fluctuations during periods of","page_number":445,"box":{"x":116,"y":258,"width":739,"height":12}},{"id":"7019484e-48ec-44ca-84d5-aefbd84a4fd5","block_type":"box","text":"changing market interest rates than are comparable securities that pay interest currently. Longer term","page_number":445,"box":{"x":116,"y":273,"width":760,"height":12}},{"id":"4c6e08e7-6490-49dc-8cf8-38c44013b38b","block_type":"box","text":"zero coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These","page_number":445,"box":{"x":116,"y":289,"width":768,"height":12}},{"id":"bcf03ac1-ba79-4c9b-a9f5-a7261583b146","block_type":"box","text":"investments benefit the issuer by mitigating its need for cash to meet debt service, but also require a","page_number":445,"box":{"x":117,"y":304,"width":749,"height":12}},{"id":"9bdfce3c-f886-47e0-afe4-7faf4714e4fd","block_type":"box","text":"higher rate of return to attract investors who are willing to defer receipt of cash.","page_number":445,"box":{"x":117,"y":320,"width":589,"height":12}},{"id":"2ec752b7-a1b6-4657-b465-2b7ead106153","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting","page_number":445,"box":{"x":116,"y":351,"width":739,"height":12}},{"id":"8bf4c950-52f7-4b4b-bf8a-732342c31582","block_type":"box","text":"purposes prior to the receipt of cash payments. Zero coupon securities may be subject to greater","page_number":445,"box":{"x":117,"y":366,"width":724,"height":12}},{"id":"8de7565e-54b0-41ca-afb5-51b06df40ecd","block_type":"box","text":"fluctuation in value and less liquidity in the event of adverse market conditions than comparably rated","page_number":445,"box":{"x":116,"y":382,"width":756,"height":12}},{"id":"ca161b72-4c93-42f8-a39b-c3185ed22a6d","block_type":"box","text":"securities that pay cash interest at regular intervals.","page_number":445,"box":{"x":116,"y":397,"width":388,"height":12}},{"id":"55d2469f-abdc-4eec-9a3d-37938236e1ba","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund","page_number":445,"box":{"x":117,"y":428,"width":764,"height":12}},{"id":"7812a496-2500-4f53-aa26-f822e59c831e","block_type":"box","text":"is required to distribute income to its shareholders and, consequently, may have to dispose of other,","page_number":445,"box":{"x":117,"y":444,"width":746,"height":12}},{"id":"6601ec62-1c49-45af-b29d-a50e163f8460","block_type":"box","text":"more liquid portfolio securities under disadvantageous circumstances or may have to leverage itself by","page_number":445,"box":{"x":117,"y":459,"width":765,"height":12}},{"id":"7ac3c9bb-63a9-48c9-a8d8-4d2973ee3d3a","block_type":"box","text":"borrowing in order to generate the cash to satisfy these distributions. The required distributions may","page_number":445,"box":{"x":117,"y":475,"width":744,"height":12}},{"id":"3b6df5c5-51ef-4ae1-8446-16b26bebdfd7","block_type":"box","text":"result in an increase in a Fund’s exposure to zero coupon securities.","page_number":445,"box":{"x":117,"y":490,"width":511,"height":12}},{"id":"a591a4ba-d845-4af3-b437-ecf767e8611d","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero","page_number":445,"box":{"x":117,"y":521,"width":712,"height":12}},{"id":"a430e085-25cd-4089-aba8-27d0788608c9","block_type":"box","text":"coupon securities. During a period of severe market conditions, the market for such securities may","page_number":445,"box":{"x":116,"y":537,"width":736,"height":12}},{"id":"fcc46ade-92d4-4888-bc96-c389c63eaaf8","block_type":"box","text":"become even less liquid. In addition, as these securities do not pay cash interest, a Fund’s investment","page_number":445,"box":{"x":117,"y":552,"width":762,"height":12}},{"id":"068f3039-96e7-4b70-9f44-2ec9878c6977","block_type":"box","text":"exposure to these securities and their risks, including credit risk, will increase during the time these","page_number":445,"box":{"x":116,"y":568,"width":739,"height":12}},{"id":"35150301-7075-4acb-bcf4-a296909cc48c","block_type":"box","text":"securities are held in the Fund’s portfolio.","page_number":445,"box":{"x":116,"y":583,"width":311,"height":12}},{"id":"ae19dc32-74b4-4979-9703-a7bcd8841ab6","block_type":"box","text":"Suitability. (All Funds)","page_number":445,"box":{"x":117,"y":614,"width":181,"height":12}},{"id":"4172577b-73e2-4256-94d7-4dba842cbba3","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of","page_number":445,"box":{"x":116,"y":637,"width":760,"height":12}},{"id":"5e41a266-fc4d-4002-95bb-3d97eb83b586","block_type":"box","text":"the Fund, the Manager and its affiliates. Each Fund should be considered a vehicle for diversification","page_number":445,"box":{"x":116,"y":653,"width":753,"height":12}},{"id":"9e94cfff-16d7-4222-b3fb-5ff104dc0221","block_type":"box","text":"and not as a balanced investment program. The suitability for any particular investor of a purchase of","page_number":445,"box":{"x":116,"y":668,"width":751,"height":12}},{"id":"01058b04-d0f3-43aa-b321-e5ca6bf32606","block_type":"box","text":"shares in a Fund will depend upon, among other things, such investor’s investment objectives and","page_number":445,"box":{"x":116,"y":684,"width":727,"height":12}},{"id":"68efd485-d599-4da0-96a8-b82f7708a9d8","block_type":"box","text":"such investor’s ability to accept the risks associated with investing in securities, including the risk of","page_number":445,"box":{"x":116,"y":699,"width":737,"height":13}},{"id":"d9dc25cd-5029-4b7b-bb9f-0edcb32fdeb2","block_type":"box","text":"loss of principal.","page_number":445,"box":{"x":117,"y":715,"width":118,"height":12}},{"id":"f20f71c6-95af-4b78-8282-7939da0eb406","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":445,"box":{"x":116,"y":746,"width":287,"height":12}},{"id":"8aa9b2ab-c665-4152-b863-f00f2c354adb","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the","page_number":445,"box":{"x":116,"y":769,"width":707,"height":12}},{"id":"27501e5f-bedb-49d4-834d-dd3786e59312","block_type":"box","text":"specific fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to","page_number":445,"box":{"x":116,"y":785,"width":766,"height":12}},{"id":"1d0b6ddc-ed1f-4340-92aa-2721a742108a","block_type":"box","text":"those investment restrictions, each Fund is also subject to the restrictions discussed below.","page_number":445,"box":{"x":116,"y":800,"width":677,"height":12}},{"id":"bc709748-c375-412b-8b99-e8c900e9d0bb","block_type":"box","text":"Each Fund’s investments will be limited in order to","page_number":445,"box":{"x":117,"y":831,"width":376,"height":10}},{"id":"0f4e5329-94ee-4e00-8e43-796764d42943","block_type":"box","text":"allow the Fund to qualify as a “regulated investment","page_number":445,"box":{"x":494,"y":831,"width":389,"height":12}},{"id":"b58b3d73-06a5-476b-9d62-e2b244f3fa67","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify,","page_number":445,"box":{"x":116,"y":847,"width":721,"height":12}},{"id":"e5adfe28-a03f-4f3d-bb92-29f5bcbbe3ee","block_type":"box","text":"among other requirements, each Fund will limit its investments so that, at the close of each quarter of","page_number":445,"box":{"x":116,"y":862,"width":757,"height":12}},{"id":"24a9c0ae-ec4b-4abe-a383-9b4da98a1744","block_type":"box","text":"the taxable year, (i) at least 50% of the market value of each Fund’s assets is represented by cash,","page_number":445,"box":{"x":116,"y":878,"width":741,"height":12}},{"id":"fa926f69-ea97-4bb8-bc16-e3377d1c4c7a","block_type":"box","text":"II-106","page_number":445,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"ab094e2d-3410-4fef-9b25-b4e843fb106f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":445,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3934a220-37d9-4199-9b72-cbf9d6b1498f","block_type":"box","text":"securities of other regulated investment companies, U.S. Government Securities and other securities,","page_number":446,"box":{"x":116,"y":87,"width":759,"height":12}},{"id":"9faa8b9e-65bf-40ee-9332-1f8939cffe36","block_type":"box","text":"with such other securities limited, in respect of any one issuer, to an amount not greater in value than","page_number":446,"box":{"x":116,"y":102,"width":756,"height":13}},{"id":"3ffd271d-ac52-4140-8ee0-2551a8451ba5","block_type":"box","text":"5% of the Fund’s assets and not greater than 10% of the outstanding voting securities of such issuer","page_number":446,"box":{"x":116,"y":118,"width":751,"height":12}},{"id":"f6254fcd-39aa-4b8f-a834-e00bfdca7712","block_type":"box","text":"and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S.","page_number":446,"box":{"x":116,"y":134,"width":718,"height":12}},{"id":"88570743-771a-4caa-a96c-caf146b26d4b","block_type":"box","text":"Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":446,"box":{"x":117,"y":149,"width":754,"height":12}},{"id":"4987de07-5eb8-4ba5-9381-298199403e17","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or","page_number":446,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"a7431342-71bc-4524-8eea-d648224a98cc","block_type":"box","text":"similar trades or businesses or related trades or businesses or in the securities of one or more qualified","page_number":446,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"10f73f53-b095-474d-932b-4ebbafa36e71","block_type":"box","text":"publicly traded partnerships (","page_number":446,"box":{"x":117,"y":196,"width":214,"height":12}},{"id":"650d58bf-3659-4cc9-8dd6-c2ed6dc4ea9c","block_type":"box","text":"i.e.","page_number":446,"box":{"x":332,"y":196,"width":21,"height":9}},{"id":"0cbf86a5-5f34-45d7-a145-f22c04da95c6","block_type":"box","text":", partnerships that are traded on an established securities market or","page_number":446,"box":{"x":356,"y":196,"width":507,"height":11}},{"id":"12df098d-93f3-49dd-8391-fdb64e141733","block_type":"box","text":"tradable on a secondary market, other than partnerships that derive 90% of their income from interest,","page_number":446,"box":{"x":116,"y":211,"width":764,"height":12}},{"id":"ed0bbe22-de84-4ec8-ad17-04cae9119fd6","block_type":"box","text":"dividends, capital gains and other traditionally permitted mutual fund income). For purposes of this","page_number":446,"box":{"x":116,"y":227,"width":734,"height":12}},{"id":"19900b93-2401-4759-886f-0da85212b2f7","block_type":"box","text":"restriction, the Municipal Funds generally will regard each state and each of its political subdivisions,","page_number":446,"box":{"x":117,"y":242,"width":749,"height":12}},{"id":"68076d90-5452-4bba-b312-de4d54649904","block_type":"box","text":"agencies or instrumentalities and each multi-state agency of which the state is a member as a","page_number":446,"box":{"x":116,"y":258,"width":703,"height":12}},{"id":"33596250-8a3c-469d-8be2-063cdf5de8b8","block_type":"box","text":"separate issuer. Each public authority that issues securities on behalf of a private entity generally will","page_number":446,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"eea370b8-6654-4b80-921f-8b5e12c687c2","block_type":"box","text":"also be regarded as a separate issuer, except that if the security is backed only by the assets and","page_number":446,"box":{"x":116,"y":289,"width":731,"height":12}},{"id":"b7279391-df34-4f09-b445-0817f777c1c3","block_type":"box","text":"revenues of a non-government entity, then the entity with the ultimate responsibility for the payment of","page_number":446,"box":{"x":117,"y":304,"width":762,"height":12}},{"id":"afa434d5-70e1-40e6-abda-2f99d8d69faa","block_type":"box","text":"interest and principal may be regarded as the sole issuer.","page_number":446,"box":{"x":117,"y":320,"width":431,"height":12}},{"id":"9d742087-b489-440d-a695-91a39d4e7fbe","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10%","page_number":446,"box":{"x":117,"y":351,"width":759,"height":12}},{"id":"7671b394-bf2e-4630-a19b-fdc97b3d2b2c","block_type":"box","text":"and 25% diversification requirements of the Code discussed above, and the securities of each foreign","page_number":446,"box":{"x":116,"y":366,"width":759,"height":12}},{"id":"e4432fd3-98b5-4d7c-9507-bacb0e554a69","block_type":"box","text":"government issuer are considered to be obligations of a single issuer. These tax-related limitations","page_number":446,"box":{"x":116,"y":382,"width":737,"height":12}},{"id":"08d95b76-93cf-43f0-9a48-dc5e8cabeeff","block_type":"box","text":"may be changed by the Directors of a Fund to the extent necessary to comply with changes to the U.S.","page_number":446,"box":{"x":117,"y":397,"width":769,"height":12}},{"id":"2ef46d28-b41a-408c-b124-b35f83f45cc4","block_type":"box","text":"federal tax requirements. A Fund that is “diversified” under the Investment Company Act must satisfy","page_number":446,"box":{"x":116,"y":413,"width":753,"height":12}},{"id":"ed5de543-9748-40e3-8821-748579476dba","block_type":"box","text":"the foregoing 5% and 10% requirements with respect to 75% of its total assets.","page_number":446,"box":{"x":116,"y":428,"width":592,"height":12}},{"id":"f6c56e23-a770-4bae-bd32-64d0ed8fbdab","block_type":"box","text":"II-107","page_number":446,"box":{"x":480,"y":909,"width":40,"height":9}},{"id":"37beb35a-2b5a-453c-8b2f-9e9bf2d54e97","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":446,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ceb78317-5627-48cc-b61f-57f136c41794","block_type":"box","text":"Appendix A","page_number":447,"box":{"x":453,"y":87,"width":98,"height":12}},{"id":"decb5418-65b5-4537-ad06-8316bef2cd72","block_type":"box","text":"Description of Bond Ratings","page_number":447,"box":{"x":387,"y":117,"width":231,"height":12}},{"id":"d2f3b707-acd4-4792-aafe-2b908453a892","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating","page_number":447,"box":{"x":116,"y":154,"width":722,"height":12}},{"id":"b9a9a70f-1dca-48fb-b2b5-220e607a0c8e","block_type":"box","text":"agency designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC.","page_number":447,"box":{"x":116,"y":170,"width":744,"height":12}},{"id":"88cc7db7-5033-4806-a0e6-bca6b4aabb30","block_type":"box","text":"While NRSROs may from time to time revise such ratings, they undertake no obligation to do so, and","page_number":447,"box":{"x":116,"y":185,"width":755,"height":12}},{"id":"d35d373b-c577-427b-847d-3fe595bf7fc7","block_type":"box","text":"the ratings given to securities at issuance do not necessarily represent ratings which would be given to","page_number":447,"box":{"x":116,"y":201,"width":767,"height":12}},{"id":"4c0213c4-831f-4703-b76c-065899ac0c41","block_type":"box","text":"these securities on a particular subsequent date.","page_number":447,"box":{"x":116,"y":216,"width":366,"height":12}},{"id":"dac1d0ee-c0a5-410f-97ca-46756a0d584c","block_type":"box","text":"NRSROs may rate specific investments (e.g., bonds), issuers (e.g., corporations, governments and","page_number":447,"box":{"x":117,"y":246,"width":740,"height":12}},{"id":"dce42ff7-8b9a-461c-ace0-ed8dd2159505","block_type":"box","text":"financial institutions) and/or programs (e.g., commercial paper programs). However, certain types of","page_number":447,"box":{"x":116,"y":261,"width":747,"height":13}},{"id":"f5756385-79e3-4ec2-a103-56684e1d0579","block_type":"box","text":"investments may not be rated by NRSROs, such as certain government/sovereign obligations, US","page_number":447,"box":{"x":117,"y":277,"width":732,"height":12}},{"id":"38945f8f-6efd-4c0e-b0f9-674c69a189ec","block_type":"box","text":"agency securities, commercial paper, time deposits at financial institutions, and derivative instruments","page_number":447,"box":{"x":116,"y":292,"width":761,"height":13}},{"id":"76ea3330-b4c5-41e6-b2c5-6eae743f988a","block_type":"box","text":"such as credit default swaps. For these types of investments, as well as US Treasury securities (some","page_number":447,"box":{"x":116,"y":308,"width":764,"height":12}},{"id":"f960e6f5-f266-43dc-9865-b9f834a056a9","block_type":"box","text":"of which are not rated), where a NRSRO has not rated the specific investment but has rated the","page_number":447,"box":{"x":116,"y":323,"width":716,"height":13}},{"id":"40f2123f-315f-4e01-8bd8-639f5de92439","block_type":"box","text":"investment’s issuer, program, financial institution or underlying reference asset, BlackRock Advisors,","page_number":447,"box":{"x":117,"y":339,"width":751,"height":12}},{"id":"83f85715-dc8c-46ce-8d67-14f8987367af","block_type":"box","text":"LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider the investment","page_number":447,"box":{"x":117,"y":355,"width":766,"height":12}},{"id":"1cc2aadf-f6a7-4470-b20e-3edfafe6db2b","block_type":"box","text":"to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":447,"box":{"x":116,"y":370,"width":736,"height":12}},{"id":"2fe15f2a-b5ab-416f-8825-68466d20c627","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings","page_number":447,"box":{"x":116,"y":386,"width":754,"height":12}},{"id":"787a3065-5e6b-4358-929c-f03ea1d9ad5d","block_type":"box","text":"for the same security (e.g., “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider","page_number":447,"box":{"x":116,"y":401,"width":770,"height":12}},{"id":"d8488589-e55e-441b-8b14-ed42cd47a238","block_type":"box","text":"the security to have the highest of the multiple ratings.","page_number":447,"box":{"x":116,"y":417,"width":407,"height":12}},{"id":"663e1545-7dac-4b6d-8802-ee78da2f1bc1","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial","page_number":447,"box":{"x":117,"y":446,"width":722,"height":13}},{"id":"e924ee09-2bf5-4421-9257-ee42760446be","block_type":"box","text":"offering. Preliminary prospectuses or term sheets for new issue securities may include an expected","page_number":447,"box":{"x":116,"y":462,"width":742,"height":12}},{"id":"37295f5b-cd73-4da1-b2eb-ab48f3fef402","block_type":"box","text":"rating for the security (as determined by the underwriter and/or issuer) or a NRSRO rating for the","page_number":447,"box":{"x":117,"y":477,"width":723,"height":13}},{"id":"9e95c9b1-d314-4f5c-aa9a-1ce345fc54f6","block_type":"box","text":"issuer of the security. If applicable, when deciding whether to purchase a new issue security that has","page_number":447,"box":{"x":117,"y":493,"width":752,"height":12}},{"id":"4841f467-1686-44bb-8f9f-3b1037dba1b6","block_type":"box","text":"not yet been rated by a NRSRO, BlackRock may attribute an expected rating to the security based on:","page_number":447,"box":{"x":117,"y":508,"width":763,"height":13}},{"id":"0f946475-04e8-4401-9d99-1149ae6efb2e","block_type":"box","text":"(i) the expected rating of the security set forth in the preliminary prospectus or term sheet for the","page_number":447,"box":{"x":117,"y":524,"width":718,"height":12}},{"id":"e4b79c9a-1d77-48dc-ab2a-6ca2aa344460","block_type":"box","text":"security; (ii) the NRSRO’s rating for the issuer of the security set forth in the preliminary prospectus or","page_number":447,"box":{"x":116,"y":539,"width":760,"height":13}},{"id":"a59d4fa5-e807-4d61-8eb8-8050e4fb5f9a","block_type":"box","text":"term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a prior issuance","page_number":447,"box":{"x":116,"y":555,"width":767,"height":12}},{"id":"3d35194d-a214-47c2-9633-89d8430ad340","block_type":"box","text":"having a similar structure or the same sponsor.","page_number":447,"box":{"x":117,"y":571,"width":353,"height":12}},{"id":"61adbd62-3dfe-4160-bd01-d2cea0e88070","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit","page_number":447,"box":{"x":116,"y":600,"width":746,"height":12}},{"id":"70a12b56-839d-4a23-8cbf-0ec129f0e3d2","block_type":"box","text":"ratings eligibility criteria as part of its index methodology, the fund may purchase any security within the","page_number":447,"box":{"x":117,"y":616,"width":771,"height":12}},{"id":"cb9f4b4f-5fcd-465e-ad1a-4d23d3c3b183","block_type":"box","text":"index, such security having been determined by the index provider as meeting its credit ratings","page_number":447,"box":{"x":117,"y":632,"width":707,"height":11}},{"id":"b4e3be2a-543e-4d25-bbcc-5f7def751b51","block_type":"box","text":"eligibility criteria. The credit ratings practices of an index provider may differ from BlackRock’s","page_number":447,"box":{"x":116,"y":647,"width":701,"height":12}},{"id":"bc994f6c-42eb-4d46-83c0-4acf2baf3d38","block_type":"box","text":"practices, as described above. Further, the fund may invest, directly or indirectly, in securities that are","page_number":447,"box":{"x":117,"y":662,"width":754,"height":12}},{"id":"d4ac2721-914c-4a19-9d3f-9e76f5b691d9","block_type":"box","text":"not rated by a rating agency or securities with a credit rating that differs from the credit rating specified","page_number":447,"box":{"x":117,"y":678,"width":757,"height":12}},{"id":"b08c4ff3-44d6-4928-8391-99f70badbf1a","block_type":"box","text":"in its index methodology in various circumstances, including where a security is downgraded but not","page_number":447,"box":{"x":117,"y":694,"width":741,"height":11}},{"id":"97331b24-15ae-4fad-8a92-c7b9d646280d","block_type":"box","text":"yet removed from an index, following the removal of a security from an index prior to its sale by the","page_number":447,"box":{"x":116,"y":709,"width":733,"height":12}},{"id":"aae84f5b-2c8e-4e80-8988-d9995b253416","block_type":"box","text":"fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the","page_number":447,"box":{"x":116,"y":724,"width":734,"height":13}},{"id":"81d7b2b9-5489-44dc-b4e5-10bd4552b04e","block_type":"box","text":"fund.","page_number":447,"box":{"x":116,"y":740,"width":36,"height":9}},{"id":"8a725da0-0589-44f2-a6c5-c00b7362f459","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to","page_number":447,"box":{"x":117,"y":770,"width":757,"height":12}},{"id":"af1278c1-acf8-496f-a935-89ec76e4ce40","block_type":"box","text":"pay interest or repay principal which are similar to the risks of lower-rated speculative bonds.","page_number":447,"box":{"x":117,"y":785,"width":686,"height":12}},{"id":"7bea3d51-3d6b-4039-8363-45cd2996cead","block_type":"box","text":"Evaluation of these securities is dependent on BlackRock’s judgment, analysis and experience in the","page_number":447,"box":{"x":117,"y":801,"width":747,"height":12}},{"id":"fb25a436-5742-4a5d-8664-0a451f98e065","block_type":"box","text":"evaluation of such securities.","page_number":447,"box":{"x":116,"y":816,"width":214,"height":10}},{"id":"4bd8a697-5af2-4c1d-b998-58daad480bfe","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the","page_number":447,"box":{"x":117,"y":846,"width":745,"height":12}},{"id":"7b13471d-83b6-4b26-8142-7bec3ef7240b","block_type":"box","text":"effect of recent developments on the issuer’s ability to make interest and principal payments or on the","page_number":447,"box":{"x":116,"y":862,"width":760,"height":12}},{"id":"587eb5e0-eeed-4557-a505-56b6e4b4b68b","block_type":"box","text":"likelihood of default.","page_number":447,"box":{"x":117,"y":877,"width":152,"height":10}},{"id":"295bde2e-c606-4b24-a7a1-ec8c55ace6ae","block_type":"box","text":"A-1","page_number":447,"box":{"x":486,"y":909,"width":24,"height":9}},{"id":"08963a43-401d-42d4-b9f7-31b7aab1391a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":447,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3f0d143a-d3f2-4181-ac22-c36d4dbb470d","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global","page_number":448,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"47a1b227-4538-46fa-a490-a9c9e0155ec6","block_type":"box","text":"Ratings and Fitch.","page_number":448,"box":{"x":117,"y":103,"width":139,"height":12}},{"id":"bd8ed9db-66e1-489c-8c1a-52ade4ad23b4","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":448,"box":{"x":116,"y":134,"width":674,"height":12}},{"id":"a96b55a5-f33b-4965-9743-85763884b990","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":448,"box":{"x":116,"y":165,"width":677,"height":12}},{"id":"d3da8ed6-cc55-40b2-9ac9-9c5c3e50d2fe","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking","page_number":448,"box":{"x":117,"y":196,"width":711,"height":12}},{"id":"c00b4920-1499-4aad-a0d6-5f06d345d6ab","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial","page_number":448,"box":{"x":116,"y":211,"width":759,"height":12}},{"id":"eb62635d-6bb1-4d9b-bbdf-6397677f2c05","block_type":"box","text":"institutions, structured finance vehicles, project finance vehicles, and public sector entities. Moody’s","page_number":448,"box":{"x":117,"y":227,"width":742,"height":12}},{"id":"9e83075e-37ce-4d9f-b983-cca88892f71f","block_type":"box","text":"defines credit risk as the risk that an entity may not meet its contractual financial obligations as they","page_number":448,"box":{"x":116,"y":242,"width":744,"height":12}},{"id":"18ea39e3-5737-4dc5-aa7d-4de3893ef94c","block_type":"box","text":"come due and any estimated financial loss in the event of default or impairment. The contractual","page_number":448,"box":{"x":116,"y":258,"width":720,"height":12}},{"id":"fdef0b51-24df-4fee-a958-cd75e77d39c4","block_type":"box","text":"financial obligations addressed by Moody’s ratings are those that call for, without regard to","page_number":448,"box":{"x":116,"y":273,"width":676,"height":12}},{"id":"a2424589-c36c-4361-aca5-172fb1e24213","block_type":"box","text":"enforceability, the payment of an ascertainable amount, which may vary based upon standard sources","page_number":448,"box":{"x":116,"y":289,"width":765,"height":12}},{"id":"5f95f32d-08f0-4d78-b06c-b584075c85c8","block_type":"box","text":"of variation (e.g., floating interest rates), by an ascertainable date. Moody’s rating addresses the","page_number":448,"box":{"x":116,"y":304,"width":719,"height":12}},{"id":"aefb8925-930c-45df-86d6-ca6a0a55a6b3","block_type":"box","text":"issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s","page_number":448,"box":{"x":117,"y":320,"width":738,"height":12}},{"id":"71ee36fd-846f-4002-b153-c31ec168a8c7","block_type":"box","text":"ratings do not address non-standard sources of variation in the amount of the principal obligation (e.g.,","page_number":448,"box":{"x":117,"y":335,"width":765,"height":12}},{"id":"bec77ecf-01ab-4ef2-ad10-6566be9492ed","block_type":"box","text":"equity indexed), absent an express statement to the contrary in a press release accompanying an","page_number":448,"box":{"x":116,"y":351,"width":731,"height":12}},{"id":"c8d233b4-1b9d-4477-b8da-5e99cd7aac3a","block_type":"box","text":"initial rating. Long-term ratings are assigned to issuers or obligations with an original maturity of one","page_number":448,"box":{"x":117,"y":366,"width":745,"height":12}},{"id":"181cbaa8-e99f-467c-bb58-0c21c0d2a8e5","block_type":"box","text":"year or more and reflect both on the likelihood of a default or impairment on contractual financial","page_number":448,"box":{"x":116,"y":382,"width":719,"height":12}},{"id":"e2b7db91-f7a0-4342-8156-5a1c64b35561","block_type":"box","text":"obligations and the expected financial loss suffered in the event of default or impairment. Short-term","page_number":448,"box":{"x":116,"y":397,"width":747,"height":12}},{"id":"4c17621c-8a1f-4c17-aaf6-b5240774b4d2","block_type":"box","text":"ratings are assigned for obligations with an original maturity of thirteen months or less and reflect both","page_number":448,"box":{"x":117,"y":413,"width":760,"height":12}},{"id":"eadab079-e587-439c-9617-62e32bef702d","block_type":"box","text":"on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":448,"box":{"x":116,"y":428,"width":717,"height":12}},{"id":"ee7bc002-5d4c-4f5a-ae26-0069f7ead117","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":448,"box":{"x":116,"y":444,"width":755,"height":12}},{"id":"d1772581-8985-48d3-b876-8bffd9e84427","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made","page_number":448,"box":{"x":116,"y":459,"width":761,"height":12}},{"id":"c7ee3e2b-570e-4f3d-b0ab-388ce8008e76","block_type":"box","text":"publicly available although private and unpublished ratings may also be assigned.","page_number":448,"box":{"x":117,"y":475,"width":610,"height":12}},{"id":"76ae30e8-838b-4baa-b22b-260f06bb0d8c","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (i.e., ratings on nonfinancial","page_number":448,"box":{"x":117,"y":506,"width":763,"height":12}},{"id":"ed6e06c2-742d-487f-aecd-6ada89bb08ac","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to","page_number":448,"box":{"x":116,"y":521,"width":769,"height":12}},{"id":"c8dfe0f1-fd3c-47dc-bad6-b3bc74f75a71","block_type":"box","text":"all structured finance ratings. The addition of (sf) to structured finance ratings should eliminate any","page_number":448,"box":{"x":116,"y":537,"width":735,"height":12}},{"id":"a2d2f18a-d00f-4629-beb9-410e5841e519","block_type":"box","text":"presumption that such ratings and fundamental ratings at the same letter grade level will behave the","page_number":448,"box":{"x":117,"y":552,"width":747,"height":12}},{"id":"1365c4c5-c8b5-4058-8132-a18ad1dc35e0","block_type":"box","text":"same. The (sf) indicator for structured finance security ratings indicates that otherwise similarly rated","page_number":448,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"85cf42a2-c402-4fcf-93aa-eb1819ca79da","block_type":"box","text":"structured finance and fundamental securities may have different risk characteristics. Through its","page_number":448,"box":{"x":116,"y":583,"width":724,"height":12}},{"id":"de628e67-7c86-4cbe-9ca4-3b979c399057","block_type":"box","text":"current methodologies, however, Moody’s aspires to achieve broad expected equivalence in structured","page_number":448,"box":{"x":116,"y":599,"width":769,"height":12}},{"id":"784b8e0f-c36c-4c06-98a2-3d3fb6f62069","block_type":"box","text":"finance and fundamental rating performance when measured over a long period of time.","page_number":448,"box":{"x":116,"y":614,"width":658,"height":12}},{"id":"8d8daa80-bcb1-40d2-a918-2bcc719928a0","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":448,"box":{"x":117,"y":645,"width":445,"height":12}},{"id":"61615355-55bc-4e89-b282-32de81b7efe6","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level","page_number":448,"box":{"x":116,"y":676,"width":756,"height":12}},{"id":"538fef03-348e-40f5-a1c7-c874889d9127","block_type":"box","text":"of credit risk.","page_number":448,"box":{"x":226,"y":692,"width":93,"height":9}},{"id":"2a6e2628-9f32-4e6e-99b6-43277e6436aa","block_type":"box","text":"Aa Obligations rated Aa are judged to be of high quality and are subject to very low credit","page_number":448,"box":{"x":116,"y":715,"width":747,"height":12}},{"id":"ab08ece6-b7fb-4d3a-8ca6-4c6142d6812a","block_type":"box","text":"risk.","page_number":448,"box":{"x":226,"y":731,"width":28,"height":9}},{"id":"852bec7f-46d9-4066-8fd9-055118b0a560","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit","page_number":448,"box":{"x":116,"y":754,"width":754,"height":12}},{"id":"9881ef42-e609-442b-879f-9ff3567f11c9","block_type":"box","text":"risk.","page_number":448,"box":{"x":226,"y":769,"width":28,"height":10}},{"id":"146641ad-56a2-4d69-8dbf-8928ed2a5e31","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit","page_number":448,"box":{"x":117,"y":792,"width":741,"height":13}},{"id":"37a8d840-d4c9-4e59-9fee-ba2eb0ae2c8c","block_type":"box","text":"risk and as such may possess certain speculative characteristics.","page_number":448,"box":{"x":226,"y":808,"width":483,"height":12}},{"id":"51bff569-4ce1-4b52-b497-97d2375ac8b1","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit","page_number":448,"box":{"x":117,"y":831,"width":750,"height":12}},{"id":"0b3a2d97-c4c0-4183-8073-32c1e05661a3","block_type":"box","text":"risk.","page_number":448,"box":{"x":226,"y":847,"width":35,"height":9}},{"id":"d113e4b9-b917-44e9-aec3-dd1902dc6cac","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":448,"box":{"x":117,"y":870,"width":717,"height":12}},{"id":"4bc1cac7-94fd-45f5-8bec-ce8c729b969e","block_type":"box","text":"A-2","page_number":448,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"dab0e9ce-cc3b-4716-843e-6f49f1095485","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":448,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1059a6a5-c6af-4a1e-a857-06e3f3ec16dc","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to","page_number":449,"box":{"x":117,"y":87,"width":755,"height":12}},{"id":"d1993065-45d1-470c-8920-d6a5d188268a","block_type":"box","text":"very high credit risk.","page_number":449,"box":{"x":225,"y":103,"width":154,"height":12}},{"id":"b40b8dd3-b251-4ea6-bd86-78dc925b67ca","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with","page_number":449,"box":{"x":117,"y":126,"width":753,"height":12}},{"id":"c477a36c-d95e-4395-a77f-5450a8c3cbb2","block_type":"box","text":"some prospect of recovery of principal and interest.","page_number":449,"box":{"x":226,"y":141,"width":386,"height":12}},{"id":"ea2092c8-e993-49cb-a8d8-6d34c3703bda","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect","page_number":449,"box":{"x":117,"y":165,"width":752,"height":12}},{"id":"84cc2411-4220-4255-8034-9ad11899b343","block_type":"box","text":"for recovery of principal or interest.","page_number":449,"box":{"x":225,"y":180,"width":264,"height":12}},{"id":"49ff417e-0396-4e8f-a38c-55e33c9b0799","block_type":"box","text":"Note:","page_number":449,"box":{"x":117,"y":210,"width":39,"height":9}},{"id":"5995c01f-a96f-4405-a412-737a48ee802c","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa","page_number":449,"box":{"x":156,"y":210,"width":706,"height":12}},{"id":"42b5251e-bcd8-4610-9c4c-bda2b5822b70","block_type":"box","text":"through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating","page_number":449,"box":{"x":116,"y":225,"width":745,"height":12}},{"id":"39b212dc-f82c-482b-bba8-d93673d7b00a","block_type":"box","text":"category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates a ranking in the","page_number":449,"box":{"x":116,"y":241,"width":741,"height":12}},{"id":"cbbd23ed-07a7-4850-bc67-574f3e4864de","block_type":"box","text":"lower end of that generic rating category. Additionally, a “(hyb)” indicator is appended to all ratings of","page_number":449,"box":{"x":117,"y":256,"width":751,"height":12}},{"id":"449f9848-b653-4cb8-9e9f-345f14975479","block_type":"box","text":"hybrid securities issued by banks, insurers, finance companies, and securities firms.","page_number":449,"box":{"x":117,"y":272,"width":628,"height":12}},{"id":"d8e0c96e-32d5-4c63-9b0d-faa5efd042d3","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal","page_number":449,"box":{"x":117,"y":301,"width":737,"height":12}},{"id":"5a16417b-cafc-4cde-affc-807c23a40509","block_type":"box","text":"payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may","page_number":449,"box":{"x":117,"y":317,"width":765,"height":12}},{"id":"dc4e8a2f-55bf-45b7-8f4f-249998091b8f","block_type":"box","text":"also be subject to contractually allowable write-downs of principal that could result in impairment.","page_number":449,"box":{"x":116,"y":332,"width":724,"height":12}},{"id":"1e37da45-ff1d-4507-bfb9-20f86dd3fb91","block_type":"box","text":"Together with the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an","page_number":449,"box":{"x":116,"y":348,"width":744,"height":12}},{"id":"7055d35e-2f79-4baf-9c13-bc77b764a534","block_type":"box","text":"expression of the relative credit risk associated with that security.","page_number":449,"box":{"x":116,"y":363,"width":488,"height":12}},{"id":"44401dcd-3971-4c11-9390-e78ff2e88364","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":449,"box":{"x":117,"y":393,"width":448,"height":12}},{"id":"7cdf09bc-ebfc-47f6-acff-2fac3edc6885","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":449,"box":{"x":117,"y":422,"width":667,"height":13}},{"id":"84259971-e6bc-4e0a-9ba5-e59125c4a560","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":449,"box":{"x":117,"y":446,"width":653,"height":12}},{"id":"09e12748-2ba8-4a30-a4cf-5c5bd98f187d","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":449,"box":{"x":117,"y":469,"width":697,"height":12}},{"id":"208e1464-e156-4c1d-a8ac-3513d7c9d10b","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime","page_number":449,"box":{"x":117,"y":492,"width":741,"height":12}},{"id":"058ac2a1-2ac5-4638-bb60-a699781bf2e9","block_type":"box","text":"rating categories.","page_number":449,"box":{"x":226,"y":508,"width":133,"height":12}},{"id":"fbf5e823-1826-43b7-847d-7f9f0d14ba7a","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":449,"box":{"x":117,"y":537,"width":707,"height":12}},{"id":"70ce036d-4546-46cc-a758-10ad86abaeb8","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":449,"box":{"x":117,"y":567,"width":439,"height":12}},{"id":"ccc2cdee-3a1d-4b4c-bdb6-b983456a7660","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S.","page_number":449,"box":{"x":117,"y":596,"width":681,"height":13}},{"id":"9c6d1cb9-55bd-42c4-b2eb-9434d49007cc","block_type":"box","text":"municipalities and nonprofits. These commercial paper programs may be backed by external letters of","page_number":449,"box":{"x":117,"y":612,"width":761,"height":12}},{"id":"f6356d1a-4780-4f97-9703-f8ba9d529b19","block_type":"box","text":"credit or liquidity facilities, or by an issuer’s self-liquidity.","page_number":449,"box":{"x":116,"y":627,"width":420,"height":13}},{"id":"f4e6b2eb-68f9-477c-83d0-47464c2ac51f","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":449,"box":{"x":117,"y":657,"width":765,"height":12}},{"id":"33cdd053-e373-427d-8561-5f1bd4187967","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales","page_number":449,"box":{"x":117,"y":673,"width":703,"height":12}},{"id":"10480736-6810-43d7-b297-533ebe29ce19","block_type":"box","text":"discussed below.","page_number":449,"box":{"x":116,"y":688,"width":126,"height":10}},{"id":"d9f0ab1f-74b3-417b-b265-42edf91d36ab","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain","page_number":449,"box":{"x":117,"y":718,"width":738,"height":12}},{"id":"05b3dfb3-f3a2-4019-ba6b-7caed6dc6d9c","block_type":"box","text":"other short-term obligations, which typically mature in three years or less. Under certain circumstances,","page_number":449,"box":{"x":116,"y":733,"width":766,"height":12}},{"id":"3f4715f0-06dc-47ea-af32-2285fd41f8a5","block_type":"box","text":"Moody’s uses the MIG scale for bond anticipation notes with maturities of up to five years.","page_number":449,"box":{"x":117,"y":749,"width":665,"height":12}},{"id":"6bbd0dd5-bfcc-47fb-9149-468b8c32348a","block_type":"box","text":"MIG Scale","page_number":449,"box":{"x":117,"y":778,"width":77,"height":10}},{"id":"b5dee916-1ed4-458d-b381-7e4976d8bce0","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by","page_number":449,"box":{"x":117,"y":808,"width":722,"height":12}},{"id":"c6a5ff0b-6811-4e22-8f93-0c3e9a332518","block_type":"box","text":"established cash flows, highly reliable liquidity support, or demonstrated broad-based","page_number":449,"box":{"x":226,"y":823,"width":631,"height":12}},{"id":"911ebf3d-dcbe-44a6-a3d5-83b5a9b709c4","block_type":"box","text":"access to the market for refinancing.","page_number":449,"box":{"x":226,"y":839,"width":275,"height":12}},{"id":"214d57f0-77bb-4cc4-af0f-28185e92c443","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although","page_number":449,"box":{"x":117,"y":862,"width":771,"height":12}},{"id":"0bc7cf40-40e8-41cb-8325-8770382480f0","block_type":"box","text":"not as large as in the preceding group.","page_number":449,"box":{"x":226,"y":878,"width":291,"height":12}},{"id":"64508a9f-faf2-4012-acac-ad14ca835385","block_type":"box","text":"A-3","page_number":449,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"4dabd64e-833d-4a53-b44c-82abe7b12dfb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":449,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"00c04a1f-b341-487c-b8fe-907cdabea3ec","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection","page_number":450,"box":{"x":117,"y":87,"width":743,"height":12}},{"id":"3ff0a725-a9b9-46c5-ba47-2dba16d85ef0","block_type":"box","text":"may be narrow, and market access for refinancing is likely to be less well-established.","page_number":450,"box":{"x":226,"y":102,"width":642,"height":13}},{"id":"c0c507e9-2e08-49c4-9d66-77f527e10029","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this","page_number":450,"box":{"x":116,"y":126,"width":723,"height":12}},{"id":"c3f91f43-280d-435e-80cc-9b997e4dfd3d","block_type":"box","text":"category may lack sufficient margins of protection.","page_number":450,"box":{"x":226,"y":141,"width":377,"height":12}},{"id":"2e9d93ec-71f1-4bc6-8814-08b7812728c3","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":450,"box":{"x":117,"y":172,"width":415,"height":12}},{"id":"a37edd86-2410-4d1e-a2ee-18600b0101ad","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The","page_number":450,"box":{"x":117,"y":203,"width":749,"height":12}},{"id":"7e4cfc34-fa51-4024-b918-390e3605a3e7","block_type":"box","text":"components are a long-term rating and a short-term demand obligation rating. The long-term rating","page_number":450,"box":{"x":116,"y":219,"width":740,"height":12}},{"id":"de3b0cfa-646b-4aac-9178-4ac0b6f3700a","block_type":"box","text":"addresses the issuer’s ability to meet scheduled principal and interest payments. The short-term","page_number":450,"box":{"x":116,"y":234,"width":719,"height":12}},{"id":"9a4a851b-2cf6-4c77-92d2-ee3723103811","block_type":"box","text":"demand obligation rating addresses the ability of the issuer or the liquidity provider to make payments","page_number":450,"box":{"x":116,"y":250,"width":759,"height":12}},{"id":"45b9ea32-fe82-4726-a45d-5ad3a8bedb2d","block_type":"box","text":"associated with the purchase-price-upon-demand feature (“demand feature”) of the VRDO. The short","page_number":450,"box":{"x":116,"y":265,"width":756,"height":12}},{"id":"69c9bc25-88d7-42b2-99ce-89668df24eaa","block_type":"box","text":"term demand obligation rating uses the VMIG scale. VMIG ratings with liquidity support use as an input","page_number":450,"box":{"x":116,"y":281,"width":770,"height":12}},{"id":"973e01cf-94ee-4d20-94bc-22c08ebe6a21","block_type":"box","text":"the short-term Counterparty Risk Assessment of the support provider, or the long-term rating of the","page_number":450,"box":{"x":116,"y":296,"width":740,"height":12}},{"id":"8334c9a8-9ac0-4307-a79f-da10adbc451b","block_type":"box","text":"underlying obligor in the absence of third party liquidity support. Transitions of VMIG ratings of demand","page_number":450,"box":{"x":117,"y":312,"width":768,"height":12}},{"id":"99ad769a-57da-4080-9895-fb4dbb8acfa1","block_type":"box","text":"obligations with conditional liquidity support differ from transitions on the Prime scale to reflect the risk","page_number":450,"box":{"x":116,"y":327,"width":760,"height":12}},{"id":"e70b6993-f612-487a-ba8c-f51308f703b4","block_type":"box","text":"that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":450,"box":{"x":116,"y":343,"width":729,"height":12}},{"id":"7befbc60-7fcd-48d9-ac44-5f784ed84e9e","block_type":"box","text":"grade.","page_number":450,"box":{"x":116,"y":358,"width":52,"height":12}},{"id":"925d4b20-fa8c-4c2e-b5da-5f7f53b7afff","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand","page_number":450,"box":{"x":117,"y":389,"width":771,"height":12}},{"id":"2126cb97-a523-4c54-989e-f77b7deb02c1","block_type":"box","text":"feature is less than every three years. If the frequency of the demand feature is less than three years","page_number":450,"box":{"x":116,"y":405,"width":753,"height":12}},{"id":"6a31d7de-61d1-4fad-9460-c18d75e16313","block_type":"box","text":"but the purchase price is payable only with remarketing proceeds, the short-term demand obligation","page_number":450,"box":{"x":117,"y":420,"width":745,"height":12}},{"id":"c1afb0b2-f133-4263-a863-ef19167bc1b4","block_type":"box","text":"rating is “NR”.","page_number":450,"box":{"x":117,"y":436,"width":107,"height":12}},{"id":"3e18a9fb-ffbc-439f-8869-f2ee5b99cc4a","block_type":"box","text":"VMIG Scale","page_number":450,"box":{"x":116,"y":467,"width":94,"height":9}},{"id":"b7aa7a98-68e1-4a65-9412-d236b1c9716d","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the","page_number":450,"box":{"x":116,"y":498,"width":756,"height":12}},{"id":"ef092af4-22a6-47ef-a766-47c3d3a5020f","block_type":"box","text":"superior short-term credit strength of the liquidity provider and structural and legal","page_number":450,"box":{"x":226,"y":513,"width":610,"height":12}},{"id":"02b6885e-becb-4f44-8e52-f13795ddb49e","block_type":"box","text":"protections that ensure the timely payment of purchase price upon demand.","page_number":450,"box":{"x":226,"y":529,"width":567,"height":12}},{"id":"d1b15ffc-2286-4e6f-9bb5-1cb7b0297c12","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong","page_number":450,"box":{"x":116,"y":552,"width":766,"height":12}},{"id":"0bfe9e48-0456-4f91-bf85-a20650b8e297","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections","page_number":450,"box":{"x":226,"y":568,"width":632,"height":12}},{"id":"e7f76b6c-6fed-4894-adc9-6f7e58876781","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":450,"box":{"x":225,"y":583,"width":481,"height":12}},{"id":"dbe092c6-e8c6-44d8-9f97-55481c4c8e7f","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by","page_number":450,"box":{"x":116,"y":606,"width":752,"height":12}},{"id":"2f2d2f7a-35ce-47d3-91be-66ad5435c862","block_type":"box","text":"the satisfactory short-term credit strength of the liquidity provider and structural and","page_number":450,"box":{"x":225,"y":622,"width":624,"height":12}},{"id":"b56d01e5-3800-4476-9819-bc2ea1be5cf5","block_type":"box","text":"legal protections that ensure the timely payment of purchase price upon demand.","page_number":450,"box":{"x":226,"y":637,"width":607,"height":12}},{"id":"25674309-dcf6-4947-b3c6-289a339d1a7c","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this","page_number":450,"box":{"x":116,"y":661,"width":762,"height":12}},{"id":"96a658c9-c2f3-44e2-b3e6-e4e6d1992fe4","block_type":"box","text":"category may be supported by a liquidity provider that does not have a sufficiently","page_number":450,"box":{"x":226,"y":676,"width":606,"height":12}},{"id":"7c8fdc50-479f-403e-aef7-efa86bbd48c0","block_type":"box","text":"strong short-term rating or may lack the structural or legal protections necessary to","page_number":450,"box":{"x":226,"y":692,"width":614,"height":12}},{"id":"bbe9cce1-3e7d-42ba-8a8a-9748297e5874","block_type":"box","text":"ensure the timely payment of purchase price upon demand.","page_number":450,"box":{"x":226,"y":707,"width":441,"height":12}},{"id":"fe5768b0-3d55-4d9f-b9b4-19c1ab1a208e","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":450,"box":{"x":117,"y":738,"width":753,"height":12}},{"id":"d9b80ca1-a04a-4658-8e33-b0d93e66bcf8","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with","page_number":450,"box":{"x":116,"y":769,"width":737,"height":12}},{"id":"c3223453-e779-4199-94b6-780e4ec59189","block_type":"box","text":"respect to a specific financial obligation, a specific class of financial obligations, or a specific financial","page_number":450,"box":{"x":117,"y":785,"width":748,"height":12}},{"id":"f507aeae-66ee-4ba6-921f-0eff784e2309","block_type":"box","text":"program (including ratings on medium-term note programs and commercial paper programs). It takes","page_number":450,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"56f9bd48-5a59-4577-9da7-093da61fec66","block_type":"box","text":"into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement","page_number":450,"box":{"x":117,"y":816,"width":744,"height":12}},{"id":"591c54b9-2ead-47b2-9cdf-342d09871fbd","block_type":"box","text":"on the obligation and takes into account the currency in which the obligation is denominated. The","page_number":450,"box":{"x":116,"y":831,"width":726,"height":12}},{"id":"175ced29-27f7-4b06-9cb6-b722d65cac3c","block_type":"box","text":"opinion reflects S&P’s view of the obligor’s capacity and willingness to meet its financial commitments","page_number":450,"box":{"x":116,"y":847,"width":759,"height":12}},{"id":"bb072fa8-d9dc-41ec-8ad5-c5584ce375e9","block_type":"box","text":"as they come due, and this opinion may assess terms, such as collateral security and subordination,","page_number":450,"box":{"x":116,"y":862,"width":750,"height":12}},{"id":"0ba85493-f2db-4c01-9bbf-51ba5ec0a919","block_type":"box","text":"which could affect ultimate payment in the event of default.","page_number":450,"box":{"x":116,"y":878,"width":441,"height":12}},{"id":"67dfa3b1-0b8b-4318-ae0b-1a24c9d2c192","block_type":"box","text":"A-4","page_number":450,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"a291f729-3e39-49da-8a68-0663b267c3c2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":450,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e52cf8fd-a737-4534-b97d-9579505003bc","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally","page_number":451,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"7c64f97f-a89e-43c3-86c2-3e8ae835e2bb","block_type":"box","text":"assigned to those obligations considered short-term in the relevant market, typically with an original","page_number":451,"box":{"x":116,"y":103,"width":743,"height":12}},{"id":"a68ba88c-e3be-4c2e-b825-491c645084ce","block_type":"box","text":"maturity of no more than 365 days. Short-term issue credit ratings are also used to indicate the","page_number":451,"box":{"x":117,"y":118,"width":708,"height":12}},{"id":"9f5c3b01-0ca0-427b-a3b6-4e724f9399d1","block_type":"box","text":"creditworthiness of an obligor with respect to put features on long-term obligations. S&P would typically","page_number":451,"box":{"x":116,"y":134,"width":771,"height":12}},{"id":"903cf8c5-e212-4b2a-aaf5-80e9363a9211","block_type":"box","text":"assign a long-term issue credit rating to an obligation with an original maturity of greater than 365 days.","page_number":451,"box":{"x":116,"y":149,"width":772,"height":12}},{"id":"a0618f0e-520e-4316-92d7-0521b67899ec","block_type":"box","text":"However, the ratings S&P assigns to certain instruments may diverge from these guidelines based on","page_number":451,"box":{"x":117,"y":165,"width":758,"height":12}},{"id":"d26f737b-7546-4c17-b167-7ee0b770c7cb","block_type":"box","text":"market practices. Medium-term notes are assigned long-term ratings.","page_number":451,"box":{"x":117,"y":180,"width":518,"height":12}},{"id":"2791604d-4723-4ce3-9ef3-24081bba5b0d","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":451,"box":{"x":117,"y":208,"width":750,"height":12}},{"id":"2b76b256-6f97-40d8-ade4-6ed52df68d84","block_type":"box","text":"• The likelihood of payment — the capacity and willingness of the obligor to meet its financial","page_number":451,"box":{"x":117,"y":237,"width":714,"height":12}},{"id":"41ec229a-9133-47c6-98f3-5170a2997e35","block_type":"box","text":"commitments on an obligation in accordance with the terms of the obligation;","page_number":451,"box":{"x":150,"y":252,"width":575,"height":12}},{"id":"3fad0adf-4c62-4a28-9527-9a341159a05e","block_type":"box","text":"• The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":451,"box":{"x":117,"y":274,"width":691,"height":12}},{"id":"7f406bac-66d9-43da-afcc-c6df4dccd608","block_type":"box","text":"• The protection afforded by, and relative position of, the financial obligation in the event of a","page_number":451,"box":{"x":117,"y":296,"width":712,"height":12}},{"id":"f35c6620-bcc3-43a4-9e23-ee178edca003","block_type":"box","text":"bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws","page_number":451,"box":{"x":150,"y":312,"width":704,"height":12}},{"id":"92fab5ba-4da3-4f24-bbe2-42d9850ab0bb","block_type":"box","text":"affecting creditors’ rights.","page_number":451,"box":{"x":150,"y":327,"width":191,"height":12}},{"id":"c53e2716-1bcc-4cdd-9877-26a29cc0b414","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority","page_number":451,"box":{"x":116,"y":355,"width":772,"height":13}},{"id":"047f819a-40e1-4aeb-983c-07ebe34ab14a","block_type":"box","text":"or ultimate recovery in the event of default. Junior obligations are typically rated lower than senior","page_number":451,"box":{"x":116,"y":371,"width":728,"height":12}},{"id":"15c78104-998c-4c43-b0b7-6375f6f8f22c","block_type":"box","text":"obligations, to reflect lower priority in bankruptcy, as noted above. (Such differentiation may apply","page_number":451,"box":{"x":116,"y":386,"width":729,"height":13}},{"id":"0736f805-fe51-4758-9b4f-2b2b1515cb85","block_type":"box","text":"when an entity has both senior and subordinated obligations, secured and unsecured obligations, or","page_number":451,"box":{"x":116,"y":402,"width":747,"height":12}},{"id":"c3f249f9-cb86-45a6-9191-ec50ecf5f1e6","block_type":"box","text":"operating company and holding company obligations.)","page_number":451,"box":{"x":116,"y":417,"width":407,"height":13}},{"id":"bd35a8ae-5c82-40e8-bd44-ba66b8e5fa2e","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":451,"box":{"x":117,"y":446,"width":265,"height":12}},{"id":"0f3641bb-ec8d-46d0-b875-6616b07ba647","block_type":"box","text":"AAA An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity","page_number":451,"box":{"x":116,"y":474,"width":770,"height":12}},{"id":"6acbd911-25cb-4d2c-b905-15235b2cbbb5","block_type":"box","text":"to meet its financial commitments on the obligation is extremely strong.","page_number":451,"box":{"x":225,"y":490,"width":533,"height":12}},{"id":"01ea5af0-8da4-40c2-969f-8caa6bdae054","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree.","page_number":451,"box":{"x":116,"y":513,"width":768,"height":12}},{"id":"c8c35a2d-0387-489a-a038-c366d795da93","block_type":"box","text":"The obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":451,"box":{"x":225,"y":528,"width":659,"height":13}},{"id":"e14347b2-48f8-48b3-9c8b-6953301c1b25","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes","page_number":451,"box":{"x":116,"y":552,"width":760,"height":12}},{"id":"9ea29675-3809-4212-aabd-05f0cd063831","block_type":"box","text":"in circumstances and economic conditions than obligations in higher-rated categories.","page_number":451,"box":{"x":226,"y":567,"width":642,"height":12}},{"id":"c22ba389-d5fb-4643-8af1-017dceffbce2","block_type":"box","text":"However, the obligor’s capacity to meet its financial commitments on the obligation is","page_number":451,"box":{"x":226,"y":583,"width":635,"height":12}},{"id":"b9236b93-fc06-422c-8d74-7ec38848f1f1","block_type":"box","text":"still strong.","page_number":451,"box":{"x":226,"y":598,"width":84,"height":12}},{"id":"5f123008-f776-4879-81f5-99061f8696c8","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse","page_number":451,"box":{"x":117,"y":621,"width":749,"height":13}},{"id":"bc6d8a96-ffee-478e-8f04-3b56bcc99f04","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken the obligor’s","page_number":451,"box":{"x":226,"y":637,"width":652,"height":12}},{"id":"f259c028-67a4-4c27-9b48-04efd59d1c3e","block_type":"box","text":"capacity to meet its financial commitments on the obligation.","page_number":451,"box":{"x":226,"y":652,"width":452,"height":13}},{"id":"6021b22b-6b24-4d01-a04b-7b698ddde90b","block_type":"box","text":"BB, B,","page_number":451,"box":{"x":117,"y":676,"width":45,"height":11}},{"id":"20c1fc5a-c920-408b-9bc4-f533850e4d0c","block_type":"box","text":"CCC, CC,","page_number":451,"box":{"x":117,"y":691,"width":72,"height":11}},{"id":"cc7dfe73-1fca-4787-aee9-0ce780c66927","block_type":"box","text":"and C","page_number":451,"box":{"x":116,"y":707,"width":44,"height":9}},{"id":"80d3fb61-9958-4257-851e-b1298fcdf60a","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant","page_number":451,"box":{"x":226,"y":676,"width":602,"height":12}},{"id":"6dd72af5-23c0-4bcb-9ff8-4e5de7d0eb9a","block_type":"box","text":"speculative characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the","page_number":451,"box":{"x":226,"y":691,"width":624,"height":12}},{"id":"80c855ed-e4e7-4b85-9c7e-995d9a56eab7","block_type":"box","text":"highest. While such obligations will likely have some quality and protective","page_number":451,"box":{"x":226,"y":707,"width":550,"height":12}},{"id":"9c281b50-7043-4536-933c-ece12a812c6d","block_type":"box","text":"characteristics, these may be outweighed by large uncertainties or major exposure to","page_number":451,"box":{"x":226,"y":722,"width":631,"height":12}},{"id":"517e3acd-695b-4f63-8a38-096902177403","block_type":"box","text":"adverse conditions.","page_number":451,"box":{"x":226,"y":738,"width":143,"height":9}},{"id":"1531f234-63c6-4fba-88dc-a3c237f3a737","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues.","page_number":451,"box":{"x":117,"y":761,"width":758,"height":12}},{"id":"7e0b6da2-98bf-4e03-8421-048bcaa1bbe9","block_type":"box","text":"However, it faces major ongoing uncertainties or exposure to adverse business,","page_number":451,"box":{"x":226,"y":776,"width":591,"height":13}},{"id":"1762214b-cb6d-406b-abfb-048f865fcc23","block_type":"box","text":"financial, or economic conditions that could lead to the obligor’s inadequate capacity to","page_number":451,"box":{"x":225,"y":792,"width":644,"height":12}},{"id":"35f5bc75-30b2-4796-94c7-6d40ec0f8a56","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":451,"box":{"x":226,"y":807,"width":361,"height":13}},{"id":"f387ff17-fc23-430f-96bf-ec9922af354d","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but","page_number":451,"box":{"x":117,"y":831,"width":767,"height":12}},{"id":"bfdc374a-0905-4da1-9934-13902f08e964","block_type":"box","text":"the obligor currently has the capacity to meet its financial commitments on the","page_number":451,"box":{"x":225,"y":846,"width":584,"height":12}},{"id":"677d70f1-1009-4d9a-8222-169ad99fa629","block_type":"box","text":"obligation. Adverse business, financial, or economic conditions will likely impair the","page_number":451,"box":{"x":226,"y":862,"width":619,"height":12}},{"id":"c88d6224-7f9d-4ce8-94f7-066d5f2cea87","block_type":"box","text":"obligor’s capacity or willingness to meet its financial commitments on the obligation.","page_number":451,"box":{"x":226,"y":877,"width":625,"height":12}},{"id":"8482c406-6668-4dc7-a33f-3eb97cd343b9","block_type":"box","text":"A-5","page_number":451,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"1ee8a2a0-11f7-4a5e-bff0-60bbf24c7f66","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":451,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b0558a17-2ac5-4734-8059-2286bcc3fb33","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon","page_number":452,"box":{"x":117,"y":87,"width":762,"height":12}},{"id":"982c678b-e954-4332-831c-194d01785989","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its","page_number":452,"box":{"x":225,"y":102,"width":601,"height":13}},{"id":"c4fe027d-250b-4e3d-b990-5be6b473c1e4","block_type":"box","text":"financial commitments on the obligation. In the event of adverse business, financial, or","page_number":452,"box":{"x":225,"y":118,"width":647,"height":12}},{"id":"0131314e-a884-44d8-bf53-4c274be9eb8c","block_type":"box","text":"economic conditions, the obligor is not likely to have the capacity to meet its financial","page_number":452,"box":{"x":226,"y":134,"width":634,"height":12}},{"id":"ea377e0a-9074-476e-bba9-afd9bc1697a8","block_type":"box","text":"commitments on the obligation.","page_number":452,"box":{"x":226,"y":149,"width":237,"height":12}},{"id":"4de2ee62-f4c2-4c9a-9325-92d6c7ca07b6","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is","page_number":452,"box":{"x":117,"y":172,"width":761,"height":12}},{"id":"02c7e13d-3eaa-422d-8e94-505a8f59714c","block_type":"box","text":"used when a default has not yet occurred but S&P expects default to be a virtual","page_number":452,"box":{"x":226,"y":188,"width":602,"height":12}},{"id":"6afd573f-c02c-49e1-ac26-5bc6daca8cea","block_type":"box","text":"certainty, regardless of the anticipated time to default.","page_number":452,"box":{"x":226,"y":203,"width":404,"height":12}},{"id":"c9e7cc8f-75a1-4c7e-9c26-0abbf2ea4001","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is","page_number":452,"box":{"x":117,"y":227,"width":769,"height":12}},{"id":"25fd3259-21e2-450a-9862-d86b6676a2f8","block_type":"box","text":"expected to have lower relative seniority or lower ultimate recovery compared with","page_number":452,"box":{"x":226,"y":242,"width":615,"height":12}},{"id":"c2d63941-844a-4f47-a2ff-f515d6241f2c","block_type":"box","text":"obligations that are rated higher.","page_number":452,"box":{"x":226,"y":258,"width":245,"height":12}},{"id":"c41b24cd-0a08-407e-aab9-33fc4fa00f66","block_type":"box","text":"D An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":452,"box":{"x":117,"y":281,"width":751,"height":12}},{"id":"2b073e27-1771-4ff2-bfd7-43984eaf1279","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are","page_number":452,"box":{"x":226,"y":296,"width":650,"height":12}},{"id":"d07e136f-6d48-44d7-a990-ac72629e38c6","block_type":"box","text":"not made on the date due, unless S&P believes that such payments will be made within","page_number":452,"box":{"x":226,"y":312,"width":655,"height":12}},{"id":"71dd7213-11ef-490d-8e97-f2e427c0fce6","block_type":"box","text":"five business days in the absence of a stated grace period or within the earlier of the","page_number":452,"box":{"x":225,"y":327,"width":632,"height":12}},{"id":"1a66e877-ce43-457b-b93a-482eb2245443","block_type":"box","text":"stated grace period or 30 calendar days. The ‘D’ rating also will be used upon the filing","page_number":452,"box":{"x":226,"y":343,"width":647,"height":12}},{"id":"caad25dd-82d4-43c9-89cd-fe33e65476a5","block_type":"box","text":"of a bankruptcy petition or the taking of similar action and where default on an obligation","page_number":452,"box":{"x":226,"y":358,"width":659,"height":12}},{"id":"28eb8fbd-9eb5-4486-9fb1-50681195a921","block_type":"box","text":"is a virtual certainty, for example due to automatic stay provisions. A rating on an","page_number":452,"box":{"x":226,"y":374,"width":605,"height":12}},{"id":"f4b68ef5-dce0-4c08-9dd2-596466b17c62","block_type":"box","text":"obligation is lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":452,"box":{"x":226,"y":389,"width":555,"height":12}},{"id":"96d329bf-dc0f-4f98-92a4-df72005b53dd","block_type":"box","text":"* Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing","page_number":452,"box":{"x":143,"y":420,"width":705,"height":9}},{"id":"7fc0bd74-6731-4aeb-8514-9ebf880fdb3d","block_type":"box","text":"within the rating categories.","page_number":452,"box":{"x":170,"y":433,"width":162,"height":9}},{"id":"22780ff9-806a-4272-a603-d0019ac63ac3","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":452,"box":{"x":116,"y":462,"width":263,"height":12}},{"id":"b9fb2292-3044-4cbe-a709-11939c4e6925","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","page_number":452,"box":{"x":116,"y":493,"width":765,"height":12}},{"id":"e9c76978-7618-41b6-81b2-74deb83ec2d1","block_type":"box","text":"capacity to meet its financial commitments on the obligation is strong. Within this","page_number":452,"box":{"x":226,"y":508,"width":603,"height":12}},{"id":"bd2081d9-1d66-48b5-919e-445582441a79","block_type":"box","text":"category, certain obligations are designated with a plus sign (+). This indicates that the","page_number":452,"box":{"x":226,"y":524,"width":648,"height":12}},{"id":"abdf7b57-ade3-4be8-bba4-fc59814b54e8","block_type":"box","text":"obligor’s capacity to meet its financial commitments on these obligations is extremely","page_number":452,"box":{"x":226,"y":539,"width":635,"height":12}},{"id":"c9b19aa8-56e7-4cf4-985d-5e23f942f14b","block_type":"box","text":"strong.","page_number":452,"box":{"x":226,"y":555,"width":55,"height":12}},{"id":"a31c9403-29b1-4afa-b011-763250f917ca","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects","page_number":452,"box":{"x":116,"y":578,"width":760,"height":12}},{"id":"b8996e92-346b-445d-b45e-e50551cdd030","block_type":"box","text":"of changes in circumstances and economic conditions than obligations in higher rating","page_number":452,"box":{"x":226,"y":593,"width":644,"height":13}},{"id":"4cebdd81-f4e4-4636-b3b7-d76794a99587","block_type":"box","text":"categories. However, the obligor’s capacity to meet its financial commitments on the","page_number":452,"box":{"x":226,"y":609,"width":629,"height":12}},{"id":"b5653d3f-7191-4059-8ed0-1653ff00ae8f","block_type":"box","text":"obligation is satisfactory.","page_number":452,"box":{"x":226,"y":624,"width":187,"height":13}},{"id":"12ecadb8-4c16-4545-9946-af1465dc0401","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However,","page_number":452,"box":{"x":116,"y":648,"width":750,"height":12}},{"id":"0fc1c216-7542-463f-9d3d-d961d0d8b57d","block_type":"box","text":"adverse economic conditions or changing circumstances are more likely to weaken an","page_number":452,"box":{"x":226,"y":663,"width":639,"height":12}},{"id":"127a9905-c7f7-49dd-97a6-7e44da43e020","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation.","page_number":452,"box":{"x":226,"y":679,"width":513,"height":12}},{"id":"080c863d-bc5a-47e7-890a-60dc08e2372b","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant","page_number":452,"box":{"x":117,"y":702,"width":681,"height":12}},{"id":"c1a351c6-3d69-4e59-ae12-58b6b8115eb2","block_type":"box","text":"speculative characteristics. The obligor currently has the capacity to meet its financial","page_number":452,"box":{"x":226,"y":717,"width":632,"height":13}},{"id":"59356fa0-71cc-4a99-bea2-c36ead6f5fc6","block_type":"box","text":"commitments; however, it faces major ongoing uncertainties that could lead to the","page_number":452,"box":{"x":226,"y":733,"width":607,"height":12}},{"id":"227766d9-7442-43bb-a9db-eae190a31fa3","block_type":"box","text":"obligor’s inadequate capacity to meet its financial commitments.","page_number":452,"box":{"x":226,"y":748,"width":473,"height":13}},{"id":"6770f612-13f6-4399-b964-40801db5e25b","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent","page_number":452,"box":{"x":117,"y":772,"width":763,"height":12}},{"id":"dc8e248e-7c92-4481-abd2-7d13e6cfe850","block_type":"box","text":"upon favorable business, financial, and economic conditions for the obligor to meet its","page_number":452,"box":{"x":226,"y":787,"width":636,"height":12}},{"id":"684df844-b1a3-48a4-b2a8-32440d0cf71b","block_type":"box","text":"financial commitments on the obligation.","page_number":452,"box":{"x":225,"y":803,"width":298,"height":12}},{"id":"f59b44a9-def0-4537-bdb6-287c43b1e751","block_type":"box","text":"A-6","page_number":452,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"8e8876d1-f5d8-4953-b0b0-508069d255f6","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":452,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3f2c018e-868e-47a6-9a80-1bacee1b7ef8","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For","page_number":453,"box":{"x":117,"y":87,"width":739,"height":12}},{"id":"89606eef-1bc8-4dc1-95d7-6cfb49bfc900","block_type":"box","text":"non-hybrid capital instruments, the ‘D’ rating category is used when payments on an","page_number":453,"box":{"x":226,"y":102,"width":629,"height":13}},{"id":"2df3aa32-1fb2-4f26-bae4-b1b27d88dd91","block_type":"box","text":"obligation are not made on the date due, unless S&P believes that such payments will","page_number":453,"box":{"x":226,"y":118,"width":643,"height":12}},{"id":"bbed467a-9197-4fb7-8675-542a310329b9","block_type":"box","text":"be made within any stated grace period. However, any stated grace period longer than","page_number":453,"box":{"x":226,"y":134,"width":648,"height":12}},{"id":"4e92463f-5dec-48e4-a414-6a44184ff4ab","block_type":"box","text":"five business days will be treated as five business days. The ‘D’ rating also will be used","page_number":453,"box":{"x":225,"y":149,"width":653,"height":12}},{"id":"0ff23391-2e07-4274-9673-46add5b84ab0","block_type":"box","text":"upon the filing of a bankruptcy petition or the taking of a similar action and where default","page_number":453,"box":{"x":226,"y":165,"width":659,"height":12}},{"id":"c32f0f86-73ee-40c0-8c70-98c20f7b530d","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions. A","page_number":453,"box":{"x":226,"y":180,"width":635,"height":12}},{"id":"0f964327-4def-470a-b12b-51e6bfd4a06c","block_type":"box","text":"rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":453,"box":{"x":226,"y":196,"width":648,"height":12}},{"id":"722780c4-e422-4d71-9cd8-48bffe814096","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":453,"box":{"x":117,"y":227,"width":456,"height":12}},{"id":"fb8c7815-b070-413d-b3f7-0591412c65b9","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access","page_number":453,"box":{"x":116,"y":258,"width":766,"height":12}},{"id":"bb343fec-968a-4e1f-9a9c-1dd2b68e725e","block_type":"box","text":"risks unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with","page_number":453,"box":{"x":117,"y":273,"width":748,"height":12}},{"id":"5c8deace-17c1-4842-87cd-eb195f6993b4","block_type":"box","text":"an original maturity of more than three years will most likely receive a long-term debt rating. In","page_number":453,"box":{"x":116,"y":289,"width":703,"height":12}},{"id":"e253efe6-26fd-482c-8eaf-787870fb18db","block_type":"box","text":"determining which type of rating, if any, to assign, S&P’s analysis will review the following","page_number":453,"box":{"x":116,"y":304,"width":668,"height":12}},{"id":"d694db81-1dc2-4901-aeda-f54fe970bce4","block_type":"box","text":"considerations:","page_number":453,"box":{"x":116,"y":320,"width":118,"height":9}},{"id":"61d6fab9-fa70-4d34-80e0-26ef744531d1","block_type":"box","text":"• Amortization schedule — the larger the final maturity relative to other maturities, the more likely it","page_number":453,"box":{"x":125,"y":351,"width":750,"height":12}},{"id":"c3e2c9cb-af90-44d4-b868-508364db2ab8","block_type":"box","text":"will be treated as a note; and","page_number":453,"box":{"x":149,"y":366,"width":220,"height":11}},{"id":"491c30b8-b559-47fc-bc76-a9e2fe6d8adc","block_type":"box","text":"• Source of payment — the more dependent the issue is on the market for its refinancing, the more","page_number":453,"box":{"x":125,"y":389,"width":753,"height":12}},{"id":"e8a8deea-11b6-44c4-8bab-04615a8059af","block_type":"box","text":"likely it will be treated as a note.","page_number":453,"box":{"x":150,"y":405,"width":242,"height":12}},{"id":"c2891a72-37bd-4ac2-b151-63f0b4eacec4","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":453,"box":{"x":116,"y":436,"width":470,"height":12}},{"id":"14a46529-179b-4b57-849a-4fb9d4fbfd9b","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very","page_number":453,"box":{"x":116,"y":467,"width":739,"height":12}},{"id":"ffa3d22d-638b-402f-a74c-0edae5ca584a","block_type":"box","text":"strong capacity to pay debt service is given a plus (+) designation.","page_number":453,"box":{"x":226,"y":482,"width":496,"height":12}},{"id":"3d6c144e-5405-47fd-b3d9-e995cbfc799e","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse","page_number":453,"box":{"x":116,"y":506,"width":741,"height":12}},{"id":"15fd110e-1954-4da8-8eca-3c5d1c13ccbb","block_type":"box","text":"financial and economic changes over the term of the notes.","page_number":453,"box":{"x":225,"y":521,"width":446,"height":12}},{"id":"d26f5692-93e5-4519-98c4-fc1a1bf15b6c","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":453,"box":{"x":116,"y":544,"width":482,"height":12}},{"id":"24aff707-a31f-4070-9710-d33bcc924f84","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":453,"box":{"x":117,"y":568,"width":750,"height":12}},{"id":"ba2b4022-3971-45d1-af80-1f7f8b10e84f","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and","page_number":453,"box":{"x":226,"y":583,"width":620,"height":12}},{"id":"5a2be279-d95a-4749-a48b-247ac2f1f88d","block_type":"box","text":"where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":453,"box":{"x":225,"y":599,"width":640,"height":12}},{"id":"c5e8ea00-a159-4d2d-9848-fe75ac236d96","block_type":"box","text":"provisions.","page_number":453,"box":{"x":226,"y":614,"width":84,"height":12}},{"id":"b105b66a-cf7a-45e5-9181-97d51a2315c7","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":453,"box":{"x":117,"y":645,"width":498,"height":12}},{"id":"125318d4-8129-46ca-927f-a5f331054c4a","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings,","page_number":453,"box":{"x":117,"y":676,"width":750,"height":12}},{"id":"34a07bbd-a39a-46df-8e0d-cd42ba95648f","block_type":"box","text":"but the agency also publishes ratings, scores and other relative opinions relating to financial or","page_number":453,"box":{"x":117,"y":692,"width":701,"height":12}},{"id":"0fdc9c36-e666-4775-947a-a936fbf27822","block_type":"box","text":"operational strength. For example, Fitch also provides specialized ratings of servicers of residential","page_number":453,"box":{"x":116,"y":707,"width":734,"height":12}},{"id":"a6c406e5-c11f-4772-9893-de4ab8c2c0b2","block_type":"box","text":"and commercial mortgages, asset managers and funds. In each case, users should refer to the","page_number":453,"box":{"x":116,"y":723,"width":706,"height":12}},{"id":"8b5594dc-4166-42df-a238-85aeb08ec948","block_type":"box","text":"definitions of each individual scale for guidance on the dimensions of risk covered in each assessment.","page_number":453,"box":{"x":116,"y":738,"width":763,"height":12}},{"id":"f1af4f0b-6268-4317-b172-f77a646384ec","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet","page_number":453,"box":{"x":117,"y":769,"width":702,"height":12}},{"id":"8a96a865-042f-4cd8-94b9-ba9a103fae8a","block_type":"box","text":"financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims","page_number":453,"box":{"x":116,"y":785,"width":756,"height":12}},{"id":"99e99829-76a8-40a9-b998-1968f11875e7","block_type":"box","text":"or counterparty obligations. Credit ratings relating to securities and obligations of an issuer can include","page_number":453,"box":{"x":116,"y":800,"width":761,"height":12}},{"id":"8165c98f-aec4-48ad-b860-5e4688e87fc9","block_type":"box","text":"a recovery expectation. Credit ratings are used by investors as indications of the likelihood of receiving","page_number":453,"box":{"x":116,"y":816,"width":761,"height":12}},{"id":"1352e6da-d6ee-457c-a5b1-1302c9cbe85d","block_type":"box","text":"the money owed to them in accordance with the terms on which they invested. The agency’s credit","page_number":453,"box":{"x":116,"y":831,"width":738,"height":12}},{"id":"bde353c1-e88f-40c2-8b06-cd17cd2a29c7","block_type":"box","text":"ratings cover the global spectrum of corporate, sovereign financial, bank, insurance, and public finance","page_number":453,"box":{"x":117,"y":847,"width":768,"height":12}},{"id":"2b529ffb-d3f7-4ab4-9bd1-007678e96f02","block_type":"box","text":"entities (including supranational and sub-national entities) and the securities or other obligations they","page_number":453,"box":{"x":116,"y":862,"width":754,"height":12}},{"id":"4e5bea7b-512a-461f-be10-689e58985725","block_type":"box","text":"issue, as well as structured finance securities backed by receivables or other financial assets.","page_number":453,"box":{"x":117,"y":878,"width":698,"height":12}},{"id":"10addfe0-2a44-49ff-b685-ee93186363c0","block_type":"box","text":"A-7","page_number":453,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"5f801dd2-4efe-41d4-a946-de6ccce4304f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":453,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4eef1be5-df73-4be0-8bb5-c95a86a00835","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as","page_number":454,"box":{"x":116,"y":87,"width":723,"height":12}},{"id":"982f88b7-0a72-47a0-89c6-51403f2c7111","block_type":"box","text":"shorthand to describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative","page_number":454,"box":{"x":116,"y":102,"width":737,"height":13}},{"id":"6fceed45-ed04-4545-a447-1c4200985d83","block_type":"box","text":"grade). The terms investment grade and speculative grade are market conventions and do not imply","page_number":454,"box":{"x":116,"y":118,"width":749,"height":12}},{"id":"4713079c-60b9-44ba-80e6-af692e039390","block_type":"box","text":"any recommendation or endorsement of a specific security for investment purposes. Investment grade","page_number":454,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"2c966f64-e6e2-426b-a3de-79f291d252f4","block_type":"box","text":"categories indicate relatively low to moderate credit risk, while ratings in the speculative categories","page_number":454,"box":{"x":116,"y":149,"width":737,"height":12}},{"id":"5e6447e8-0e6d-448a-9ad4-34aac15f9907","block_type":"box","text":"either signal a higher level of credit risk or that a default has already occurred.","page_number":454,"box":{"x":116,"y":165,"width":584,"height":12}},{"id":"58d2e950-1cea-45b3-8752-30b9e8a7f74c","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not","page_number":454,"box":{"x":117,"y":196,"width":750,"height":12}},{"id":"e34498a7-669f-4417-a090-79ff25e54d69","block_type":"box","text":"and have not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":454,"box":{"x":116,"y":211,"width":603,"height":12}},{"id":"e72581e0-f332-434a-bc03-88071d782512","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk","page_number":454,"box":{"x":117,"y":242,"width":770,"height":12}},{"id":"5fd51367-ed97-4383-9e4f-584916efb387","block_type":"box","text":"and are not predictive of a specific frequency of default or loss. For information about the historical","page_number":454,"box":{"x":116,"y":258,"width":735,"height":12}},{"id":"763d18f4-f9a7-49d4-8cec-85a36fd271c6","block_type":"box","text":"performance of ratings please refer to Fitch’s Ratings Transition and Default studies which detail the","page_number":454,"box":{"x":117,"y":273,"width":747,"height":12}},{"id":"9e7859fc-6dc7-4d7f-9e92-98b8773478ce","block_type":"box","text":"historical default rates and their meaning. The European Securities and Markets Authority also","page_number":454,"box":{"x":117,"y":289,"width":705,"height":12}},{"id":"c28910da-7bfb-4a34-b121-9910c2dacf78","block_type":"box","text":"maintains a central repository of historical default rates.","page_number":454,"box":{"x":117,"y":304,"width":415,"height":12}},{"id":"1b46704d-f3e6-48bc-b5dd-1c4db3d20f5e","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not","page_number":454,"box":{"x":117,"y":335,"width":756,"height":12}},{"id":"89a27257-7dcb-4b4c-b6f1-ce6d38fdc7da","block_type":"box","text":"deal with the risk of a market value loss on a rated security due to changes in interest rates, liquidity","page_number":454,"box":{"x":116,"y":351,"width":747,"height":12}},{"id":"6750045f-74d7-43a3-8a1b-4e8a63124e75","block_type":"box","text":"and other market considerations. However, in terms of payment obligation on the rated liability, market","page_number":454,"box":{"x":116,"y":366,"width":765,"height":12}},{"id":"3106ea56-8d02-44f0-b57c-9cf12dbe9502","block_type":"box","text":"risk may be considered to the extent that it influences the ability of an issuer to pay upon a","page_number":454,"box":{"x":117,"y":382,"width":674,"height":12}},{"id":"dc642eac-d5b9-414f-9619-c396628d96e2","block_type":"box","text":"commitment.","page_number":454,"box":{"x":116,"y":397,"width":101,"height":10}},{"id":"4f2be25d-2c3b-44b8-a2ed-56b6ff1bf2a3","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other","page_number":454,"box":{"x":117,"y":428,"width":709,"height":12}},{"id":"feca780c-fcc1-4b30-8535-1c2837530927","block_type":"box","text":"conditionality of the obligation to pay upon a commitment (for example, in the case of index-linked","page_number":454,"box":{"x":116,"y":444,"width":731,"height":12}},{"id":"2fbfa7dc-adf0-438c-a537-96d4490d9854","block_type":"box","text":"bonds).","page_number":454,"box":{"x":117,"y":459,"width":59,"height":12}},{"id":"0186520f-17f8-4d00-adde-46f8b8a23575","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency","page_number":454,"box":{"x":117,"y":490,"width":725,"height":12}},{"id":"f8bac8a0-afe3-4d4d-9252-2e96d082feed","block_type":"box","text":"typically rates to the likelihood of non-payment or default in accordance with the terms of that","page_number":454,"box":{"x":116,"y":506,"width":695,"height":12}},{"id":"0333395b-1b39-4381-8b8e-87823b509071","block_type":"box","text":"instrument’s documentation. In limited cases, Fitch may include additional considerations (i.e. rate to a","page_number":454,"box":{"x":117,"y":521,"width":764,"height":12}},{"id":"c2a9fd03-6792-49c0-8d05-9ff1486ec669","block_type":"box","text":"higher or lower standard than that implied in the obligation’s documentation).","page_number":454,"box":{"x":117,"y":537,"width":573,"height":12}},{"id":"41c71af6-888c-4a9f-a685-bc1914c53a7b","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or","page_number":454,"box":{"x":116,"y":568,"width":719,"height":12}},{"id":"e827728c-f799-4f35-a6d4-34361fe24dc9","block_type":"box","text":"certain note issuance programs or for private ratings. In this case the rating is not published, but only","page_number":454,"box":{"x":116,"y":583,"width":753,"height":12}},{"id":"5b56124c-20cf-41ed-9173-2f8cef40fa5a","block_type":"box","text":"provided to the issuer or its agents in the form of a rating letter.","page_number":454,"box":{"x":117,"y":599,"width":472,"height":12}},{"id":"f4490220-53be-48c7-a6e8-0759e83fde75","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope,","page_number":454,"box":{"x":116,"y":630,"width":702,"height":12}},{"id":"e2772d41-335d-491e-8918-7826cc53a024","block_type":"box","text":"including interest strips and return of principal or in other forms of opinions such as credit opinions or","page_number":454,"box":{"x":117,"y":645,"width":751,"height":12}},{"id":"5d1e1f5f-36d5-46bc-9d0e-ffae764a723b","block_type":"box","text":"rating assessment services. Credit opinions are either a notch- or category-specific view using the","page_number":454,"box":{"x":117,"y":661,"width":726,"height":12}},{"id":"40afbd9d-af0e-40a0-8bf5-b896cec979e0","block_type":"box","text":"primary rating scale and omit one or more characteristics of a full rating or meet them to a different","page_number":454,"box":{"x":117,"y":676,"width":731,"height":12}},{"id":"66c7d9fc-98b9-41bd-a896-f8a04742d37a","block_type":"box","text":"standard. Credit opinions will be indicated using a lower case letter symbol combined with either an ‘*’","page_number":454,"box":{"x":116,"y":692,"width":754,"height":12}},{"id":"79aed31f-ac7e-47b0-a65b-ae9c8d7653a9","block_type":"box","text":"(e.g. ‘bbb+*’) or (cat) suffix to denote the opinion status. Credit opinions will be point-in-time typically","page_number":454,"box":{"x":117,"y":707,"width":743,"height":12}},{"id":"79562e61-d419-42a8-a3c6-14ebe2e21cec","block_type":"box","text":"but may be monitored if the analytical group believes information will be sufficiently available. Rating","page_number":454,"box":{"x":117,"y":723,"width":742,"height":12}},{"id":"c406d6b1-fa01-4dd0-b5e6-e564b051fabc","block_type":"box","text":"assessment services are a notch-specific view using the primary rating scale of how an existing or","page_number":454,"box":{"x":116,"y":738,"width":729,"height":12}},{"id":"b320c860-8788-42d1-b375-42f0fbf9269f","block_type":"box","text":"potential rating may be changed by a given set of hypothetical circumstances. While credit opinions","page_number":454,"box":{"x":117,"y":754,"width":736,"height":12}},{"id":"750c35f1-f105-4d5a-abad-7e909962e6f9","block_type":"box","text":"and rating assessment services are point-in-time and are not monitored, they may have a directional","page_number":454,"box":{"x":116,"y":769,"width":745,"height":12}},{"id":"8efab53d-eb9f-41ca-aa9c-8e2b94b3487d","block_type":"box","text":"watch or outlook assigned, which can signify the trajectory of the credit profile.","page_number":454,"box":{"x":116,"y":785,"width":579,"height":12}},{"id":"53d8f890-487e-4b95-a56a-f00b374b25f6","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":454,"box":{"x":117,"y":816,"width":629,"height":12}},{"id":"69758fb7-007b-4437-b661-cc19d21f19e8","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative","page_number":454,"box":{"x":117,"y":847,"width":682,"height":12}},{"id":"2835539e-8928-4e9a-886c-255ec1da445d","block_type":"box","text":"vulnerability to default on an ordinal scale. In addition, for financial obligations in corporate finance, a","page_number":454,"box":{"x":116,"y":862,"width":752,"height":12}},{"id":"fa81e9ec-6239-4bd3-bdc1-85d292195c30","block_type":"box","text":"measure of recovery given default on that liability is also included in the rating assessment. This","page_number":454,"box":{"x":117,"y":878,"width":716,"height":12}},{"id":"4f7a1bdf-7cbf-45d0-ad53-7315f6bcb24a","block_type":"box","text":"A-8","page_number":454,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"3142b399-910e-4f01-9419-359ec497408a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":454,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c6e4e607-9de5-4617-bb71-29c20a2d0063","block_type":"box","text":"notably applies to covered bonds ratings, which incorporate both an indication of the probability of","page_number":455,"box":{"x":117,"y":87,"width":729,"height":12}},{"id":"f9cb11e9-5df8-4896-9863-fdfeefbfe8c0","block_type":"box","text":"default and of the recovery given a default of this debt instrument. On the contrary, Ratings of","page_number":455,"box":{"x":116,"y":102,"width":699,"height":13}},{"id":"365b4771-a4bc-4012-80c7-6a7be7906a92","block_type":"box","text":"debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":455,"box":{"x":116,"y":118,"width":642,"height":12}},{"id":"92c8972c-ea9d-432c-9de2-23a710bb37ed","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average","page_number":455,"box":{"x":116,"y":149,"width":750,"height":12}},{"id":"87072178-565c-4530-9289-300b816503aa","block_type":"box","text":"recovery. Individual obligations can be assigned ratings higher, lower, or the same as that entity’s","page_number":455,"box":{"x":117,"y":165,"width":728,"height":12}},{"id":"3f98e80b-d2fc-4fa0-b22e-bb011d3494ab","block_type":"box","text":"issuer rating or issuer default rating (“IDR”), based on their relative ranking, relative vulnerability to","page_number":455,"box":{"x":117,"y":180,"width":733,"height":12}},{"id":"024c1d92-005c-42ea-a21f-e770e0d7719d","block_type":"box","text":"default or based on explicit Recovery Ratings.","page_number":455,"box":{"x":116,"y":196,"width":347,"height":12}},{"id":"1f8c1a54-c416-47d5-b228-197ce58b7b18","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower,","page_number":455,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"acc26e38-26d7-49cf-98ce-9aa790603704","block_type":"box","text":"or the same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an","page_number":455,"box":{"x":116,"y":242,"width":766,"height":12}},{"id":"49825807-e380-4923-8c95-88dc9fe6df57","block_type":"box","text":"IDR. At the lower end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to","page_number":455,"box":{"x":117,"y":258,"width":756,"height":12}},{"id":"c75caf73-3c22-4fcd-a5d5-005aafc66d58","block_type":"box","text":"complement issuer and obligation ratings.","page_number":455,"box":{"x":116,"y":273,"width":315,"height":12}},{"id":"36ef1deb-07c5-40db-a52c-48770d76b3a1","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":455,"box":{"x":117,"y":304,"width":412,"height":12}},{"id":"535870c3-bac2-48ae-a76c-61653ebf34e1","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They","page_number":455,"box":{"x":116,"y":335,"width":753,"height":12}},{"id":"bab23991-e41a-4977-8ca7-472ca393c22f","block_type":"box","text":"are assigned only in cases of exceptionally strong capacity for payment of financial","page_number":455,"box":{"x":226,"y":351,"width":619,"height":12}},{"id":"6d1b9979-31a1-40da-9c5d-3e569d736edc","block_type":"box","text":"commitments. This capacity is highly unlikely to be adversely affected by foreseeable","page_number":455,"box":{"x":226,"y":366,"width":636,"height":12}},{"id":"cae2fc39-077a-4fb9-a9a6-810134fab25b","block_type":"box","text":"events.","page_number":455,"box":{"x":226,"y":382,"width":58,"height":9}},{"id":"a9ec8ea3-fcfe-4f60-88ad-d7961ed1ee08","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They","page_number":455,"box":{"x":116,"y":405,"width":753,"height":12}},{"id":"b86a0a2b-2234-4194-95bd-e9bfc1daf8fa","block_type":"box","text":"indicate very strong capacity for payment of financial commitments. This capacity is not","page_number":455,"box":{"x":226,"y":420,"width":652,"height":12}},{"id":"1c7adf97-4a3c-41ad-8b2c-11900727ee39","block_type":"box","text":"significantly vulnerable to foreseeable events.","page_number":455,"box":{"x":226,"y":436,"width":343,"height":12}},{"id":"40f0f696-5778-4210-bb80-c8f56cf2e2cd","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for","page_number":455,"box":{"x":116,"y":459,"width":748,"height":12}},{"id":"e7943327-88eb-4bc7-852f-cbf42b3f991b","block_type":"box","text":"payment of financial commitments is considered strong. This capacity may,","page_number":455,"box":{"x":226,"y":475,"width":562,"height":12}},{"id":"f2a0928b-a7dc-4d75-84ee-19637d084226","block_type":"box","text":"nevertheless, be more vulnerable to adverse business or economic conditions than is","page_number":455,"box":{"x":226,"y":490,"width":638,"height":11}},{"id":"8ed38b2f-c649-4282-9072-fefb599d5ced","block_type":"box","text":"the case for higher ratings.","page_number":455,"box":{"x":225,"y":506,"width":204,"height":12}},{"id":"15e82e7e-bc39-451f-86c8-9fd9221ccf66","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently","page_number":455,"box":{"x":117,"y":529,"width":755,"height":12}},{"id":"d3c3c6a0-ba9e-4dbf-843b-6cb14c65160c","block_type":"box","text":"low. 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The modifiers “+” or “-” may be appended to a rating","page_number":455,"box":{"x":116,"y":769,"width":759,"height":12}},{"id":"9498543b-35cf-43ac-8caa-5d89d4665800","block_type":"box","text":"to denote relative status within major rating categories.","page_number":455,"box":{"x":116,"y":785,"width":405,"height":12}},{"id":"e9356399-90d8-4cb6-bf08-e3c61f1be55e","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a","page_number":455,"box":{"x":117,"y":816,"width":750,"height":12}},{"id":"355c9364-ff3e-4b1d-b8f4-17586b5d17ba","block_type":"box","text":"rating level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For","page_number":455,"box":{"x":117,"y":831,"width":745,"height":12}},{"id":"bd44aaa3-c7fd-4646-82a3-598dbf993a93","block_type":"box","text":"the short-term rating category of ‘F1’, a ‘+’ may be appended.","page_number":455,"box":{"x":116,"y":847,"width":461,"height":12}},{"id":"e091a206-8b05-4b3a-8d97-688c98708637","block_type":"box","text":"A-9","page_number":455,"box":{"x":486,"y":909,"width":26,"height":9}},{"id":"bdcaf819-bc7f-48bc-898c-be30771b47b0","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":455,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"24625ba7-f2fb-4771-a61d-7c855604154b","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":456,"box":{"x":117,"y":87,"width":634,"height":12}},{"id":"437d8a54-4bcb-4801-bc6e-3b364958c8b8","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of","page_number":456,"box":{"x":116,"y":118,"width":764,"height":12}},{"id":"8ed66512-cfc9-49cd-a272-0c3f22ef45d4","block_type":"box","text":"the rated entity and relates to the capacity to meet financial obligations in accordance with the","page_number":456,"box":{"x":116,"y":134,"width":701,"height":12}},{"id":"125204c8-46ce-489a-8df7-086ad4467d33","block_type":"box","text":"documentation governing the relevant obligation. Short-term deposit ratings may be adjusted for loss","page_number":456,"box":{"x":116,"y":149,"width":753,"height":12}},{"id":"0722c34f-aac5-4459-b4a4-edd92e538d5b","block_type":"box","text":"severity. Short-term ratings are assigned to obligations whose initial maturity is viewed as “short term”","page_number":456,"box":{"x":116,"y":165,"width":760,"height":12}},{"id":"6f89ace2-8645-47c6-b0c7-3c47076a9a61","block_type":"box","text":"based on market convention. Typically, this means up to 13 months for corporate, sovereign, and","page_number":456,"box":{"x":117,"y":180,"width":726,"height":12}},{"id":"206def78-d658-4d38-9059-b87e08f9b9c9","block_type":"box","text":"structured obligations and up to 36 months for obligations in U.S. public finance markets.","page_number":456,"box":{"x":116,"y":196,"width":664,"height":12}},{"id":"6a284b67-c960-4879-89ee-9d67b5b54341","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":456,"box":{"x":117,"y":227,"width":289,"height":12}},{"id":"8faa47e7-d4fd-4c57-b2d7-34a1b8694903","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely","page_number":456,"box":{"x":117,"y":258,"width":746,"height":12}},{"id":"7fb93621-e5b9-4b52-a12a-50cabf9b8920","block_type":"box","text":"payment of financial commitments; may have an added “+” to denote any exceptionally","page_number":456,"box":{"x":226,"y":273,"width":650,"height":12}},{"id":"7615744c-3f83-4d25-bc90-35d5a2483f7e","block_type":"box","text":"strong credit feature.","page_number":456,"box":{"x":226,"y":289,"width":158,"height":12}},{"id":"03de4918-9ddf-4db3-918f-2e24ab2d4fec","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":456,"box":{"x":117,"y":312,"width":757,"height":12}},{"id":"159bb05b-56a6-46f2-aad9-8edbe97e8b21","block_type":"box","text":"commitments.","page_number":456,"box":{"x":226,"y":327,"width":109,"height":10}},{"id":"306876e6-2938-44d6-91cc-cf117f2c522f","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial","page_number":456,"box":{"x":117,"y":351,"width":732,"height":12}},{"id":"d07d2976-a52f-47eb-a2c6-f5a036f99014","block_type":"box","text":"commitments is adequate.","page_number":456,"box":{"x":226,"y":366,"width":200,"height":12}},{"id":"eb32b391-060c-4f32-9bf3-42aecc7835ca","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":456,"box":{"x":117,"y":389,"width":758,"height":12}},{"id":"1f16c108-3f4c-4600-a631-680890c03bda","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial","page_number":456,"box":{"x":226,"y":405,"width":638,"height":12}},{"id":"7623e675-ac99-4b02-b9d3-54c6f51fef70","block_type":"box","text":"and economic conditions.","page_number":456,"box":{"x":226,"y":420,"width":194,"height":10}},{"id":"eb59c351-1400-4c8f-bf66-dff11be8ff8f","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":456,"box":{"x":117,"y":444,"width":541,"height":12}},{"id":"9688fcf0-d133-42be-ac97-07029ce97568","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":456,"box":{"x":117,"y":467,"width":756,"height":12}},{"id":"78bcc41c-8f0e-459f-914c-155ee9acc938","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically","page_number":456,"box":{"x":226,"y":482,"width":598,"height":12}},{"id":"d297d375-dfd0-425b-b9fd-cb7b6c4b44a1","block_type":"box","text":"applicable to entity ratings only.","page_number":456,"box":{"x":226,"y":498,"width":239,"height":12}},{"id":"5ae5e9cf-1aa2-497d-9b10-5191da68424b","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short","page_number":456,"box":{"x":117,"y":521,"width":733,"height":12}},{"id":"ae635b8f-66c7-417b-b3e4-d5ffd6644e5b","block_type":"box","text":"term obligation.","page_number":456,"box":{"x":225,"y":537,"width":120,"height":12}},{"id":"43779693-7c34-42f0-ba4f-7e68a4cbedfa","block_type":"box","text":"A-10","page_number":456,"box":{"x":482,"y":909,"width":35,"height":9}},{"id":"d945b645-bbb0-4140-9d72-32645820ae21","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":456,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4f85b09b-ad5b-4bf5-871f-6d49cf998418","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":457,"box":{"x":380,"y":87,"width":508,"height":12}},{"id":"71719678-767f-412a-8bf8-ffad5b7eb475","block_type":"box","text":"APPENDIX B","page_number":457,"box":{"x":448,"y":118,"width":108,"height":9}},{"id":"2f1d9b34-0f6a-4bb1-928a-e44c7624184c","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":457,"box":{"x":204,"y":146,"width":597,"height":14}},{"id":"0c53bfa5-7e3c-4e47-95c4-f5c136a7dd04","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":457,"box":{"x":229,"y":175,"width":547,"height":13}},{"id":"b610993e-85b4-415a-bbca-ba22a989d513","block_type":"box","text":"Effective Date: January 1, 2025","page_number":457,"box":{"x":383,"y":204,"width":239,"height":12}},{"id":"346a1a9f-fc17-446d-a3e9-28113db37e2f","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":457,"box":{"x":116,"y":232,"width":597,"height":13}},{"id":"9b1bb094-d9e8-489b-9227-1122420d5677","block_type":"box","text":"‘","page_number":457,"box":{"x":116,"y":261,"width":17,"height":13}},{"id":"d20e5bef-f803-4e7e-8114-4067948dfa47","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":457,"box":{"x":134,"y":262,"width":456,"height":13}},{"id":"c5356136-cdc1-4f8d-aa3c-e1ee142a03c7","block_type":"box","text":"È","page_number":457,"box":{"x":116,"y":277,"width":17,"height":14}},{"id":"9aea1901-103c-45ef-bfaf-9ab9db1466b1","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":457,"box":{"x":134,"y":278,"width":688,"height":14}},{"id":"cb16b606-f2c7-4f1c-93cf-b9d98211d586","block_type":"box","text":"‘","page_number":457,"box":{"x":116,"y":294,"width":17,"height":13}},{"id":"b43a3669-7e70-4638-a7c9-99856ce333f4","block_type":"box","text":"Money Market 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Policy.","page_number":457,"box":{"x":116,"y":386,"width":675,"height":12}},{"id":"4b60709b-96ba-46a2-a4b0-c320c4dc4b44","block_type":"box","text":"Policy / Document Requirements and Statements","page_number":457,"box":{"x":117,"y":414,"width":396,"height":12}},{"id":"56eb67c3-db4f-4295-99d3-c6314d389fa3","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":457,"box":{"x":116,"y":442,"width":730,"height":12}},{"id":"922b58ff-e545-41e9-bcd9-2ceba68db01d","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the","page_number":457,"box":{"x":117,"y":457,"width":743,"height":13}},{"id":"638848a8-0c70-4f61-af6f-23f3f3a767b4","block_type":"box","text":"oversight of voting proxies relating to portfolio securities of the Funds, and have determined that it is in","page_number":457,"box":{"x":116,"y":473,"width":765,"height":12}},{"id":"7fcdad17-d807-4675-96a0-26f6a8d0c609","block_type":"box","text":"the best interests of the Funds and their shareholders to delegate the responsibility to vote proxies to","page_number":457,"box":{"x":116,"y":488,"width":754,"height":13}},{"id":"e924e69a-129c-4587-9e27-1e381f01847d","block_type":"box","text":"BlackRock, subject to the principles outlined in this Policy, as part of BlackRock’s authority to manage,","page_number":457,"box":{"x":117,"y":504,"width":764,"height":12}},{"id":"9c005c0a-2ac4-4974-916a-7088ce4a230f","block_type":"box","text":"acquire and dispose of account assets, all as contemplated by the Funds’ respective investment","page_number":457,"box":{"x":116,"y":519,"width":718,"height":13}},{"id":"b9bb7d85-061f-4c77-b285-2457ac80f343","block_type":"box","text":"management agreements.","page_number":457,"box":{"x":117,"y":535,"width":200,"height":12}},{"id":"1f91bd08-84df-4f7c-9a5e-856a3349dbc1","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":457,"box":{"x":117,"y":563,"width":766,"height":12}},{"id":"10a9e9c5-1984-47fc-9bfc-98d4479fe022","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed","page_number":457,"box":{"x":117,"y":579,"width":768,"height":12}},{"id":"3f1a03a2-8ef6-41f7-9590-e0d680f6b6d3","block_type":"box","text":"income index Funds managed by BlackRock. The Guidelines include “climate and decarbonization”","page_number":457,"box":{"x":117,"y":594,"width":741,"height":12}},{"id":"3d1fd4f8-1943-4de7-95ce-3de248d810d2","block_type":"box","text":"guidelines which apply to the Funds listed in Appendix A, if any.","page_number":457,"box":{"x":116,"y":610,"width":477,"height":12}},{"id":"d2729a3f-f085-470f-b8a3-4156af4a2fb1","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy","page_number":457,"box":{"x":117,"y":638,"width":719,"height":12}},{"id":"02fee2b7-4cfe-451e-b17e-f5c8248b0366","block_type":"box","text":"issues in respect of securities held by each such Fund (or may refrain from voting) in accordance with","page_number":457,"box":{"x":117,"y":653,"width":759,"height":12}},{"id":"da30239c-d7ce-460e-8741-f910983bd990","block_type":"box","text":"the Guidelines.","page_number":457,"box":{"x":116,"y":669,"width":110,"height":9}},{"id":"0bc54263-e38e-4491-a90c-7b221b0b953d","block_type":"box","text":"Conflicts Management","page_number":457,"box":{"x":116,"y":697,"width":179,"height":12}},{"id":"dbabd3d0-bb0b-4420-b198-da2ea50fbbfd","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to","page_number":457,"box":{"x":117,"y":725,"width":729,"height":12}},{"id":"c9dfd236-53e6-4f9b-aea2-336cb7b56e85","block_type":"box","text":"prevent undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of","page_number":457,"box":{"x":117,"y":740,"width":714,"height":13}},{"id":"e2a9d0f9-7946-4cd2-8d02-f23fa8ed270f","block_type":"box","text":"interest in the exercise of proxy voting responsibilities. Potential material conflicts, and the resultant","page_number":457,"box":{"x":117,"y":756,"width":736,"height":12}},{"id":"b3bfc6c0-2443-40e7-9fad-da078f261199","block_type":"box","text":"potential for undue influence, might be due to a relationship between the investee company (or any","page_number":457,"box":{"x":117,"y":771,"width":734,"height":13}},{"id":"9a96cc5a-4f48-45ee-88f8-441f9b0b0752","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates or employees,","page_number":457,"box":{"x":116,"y":787,"width":752,"height":12}},{"id":"6901c445-7e83-4e13-9372-934ff2282dac","block_type":"box","text":"or a Fund or a Fund’s affiliates. BlackRock has taken certain steps to mitigate potential conflicts, which","page_number":457,"box":{"x":116,"y":802,"width":761,"height":13}},{"id":"dd650ad3-e7d5-4858-a1ee-675ae6e53cfd","block_type":"box","text":"are outlined in detail in the Guidelines. 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This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":462,"box":{"x":170,"y":828,"width":676,"height":10}},{"id":"a9b460f6-9015-49b1-b4a3-a126571e704d","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":462,"box":{"x":171,"y":841,"width":631,"height":9}},{"id":"1ab2fab4-8899-496f-903e-534aab6e3ee6","block_type":"box","text":"2","page_number":462,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"a082196e-de04-46ea-a702-d9b2e1c2c571","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part of a","page_number":462,"box":{"x":171,"y":854,"width":709,"height":9}},{"id":"b803f4af-4ca2-4b17-9e7e-7bf549d87aba","block_type":"box","text":"strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. 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The money BlackRock manages is not its","page_number":463,"box":{"x":117,"y":118,"width":741,"height":12}},{"id":"5be11226-f3e4-4673-b52b-445232c4c5f8","block_type":"box","text":"own — it belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio","page_number":463,"box":{"x":116,"y":134,"width":756,"height":12}},{"id":"562c8a13-7c56-4fc8-ae73-a010d9ee5fda","block_type":"box","text":"construction decisions. As a fiduciary, BlackRock invests on clients’ behalf to help them meet their","page_number":463,"box":{"x":116,"y":149,"width":733,"height":12}},{"id":"e2b1cdcb-2693-41fe-9c0d-8fe9614917c9","block_type":"box","text":"investment objectives. The firm does this by understanding clients’ long-term investment objectives","page_number":463,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"bbef225f-7b19-4888-b30f-1229184578cf","block_type":"box","text":"and offering choice on how and where they wish to invest their money. BlackRock then helps clients","page_number":463,"box":{"x":116,"y":180,"width":747,"height":12}},{"id":"d97298ef-8283-400a-bde2-b9a56786c5cc","block_type":"box","text":"seek the best risk-adjusted returns based on those choices, underpinning this work with research, data","page_number":463,"box":{"x":116,"y":196,"width":768,"height":12}},{"id":"e7805cfc-a28a-4297-b11f-7193569140b3","block_type":"box","text":"and analytics.","page_number":463,"box":{"x":116,"y":211,"width":107,"height":12}},{"id":"caad238c-f3b1-477d-8c4a-31017a3991f9","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our","page_number":463,"box":{"x":116,"y":242,"width":748,"height":12}},{"id":"ca293b72-f939-4fe2-a068-eb683bd8addd","block_type":"box","text":"clients. As stewards of our clients’ assets, we engage with companies to discuss the corporate","page_number":463,"box":{"x":116,"y":258,"width":706,"height":12}},{"id":"6fbfd36d-6721-4f9f-a033-0645a8589cbb","block_type":"box","text":"governance and business practices that, in our experience, support companies in delivering durable,","page_number":463,"box":{"x":116,"y":273,"width":751,"height":12}},{"id":"fe17d8fa-d5ef-4a9a-ae12-de1a6f9aea57","block_type":"box","text":"risk-adjusted financial returns over time. We are committed to building strong relationships through","page_number":463,"box":{"x":117,"y":289,"width":736,"height":12}},{"id":"2da8f899-f693-4ef8-9867-fad300c24ab5","block_type":"box","text":"constructive, ongoing dialogue with the boards and executive management of the companies in which","page_number":463,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"2f6cea27-657f-4b4d-8625-12ec46d41b3f","block_type":"box","text":"our clients are invested.","page_number":463,"box":{"x":116,"y":320,"width":182,"height":9}},{"id":"db40bfaf-338d-4b65-9d31-8d720e1194eb","block_type":"box","text":"About BlackRock Active Investment Stewardship","page_number":463,"box":{"x":303,"y":351,"width":398,"height":11}},{"id":"2aa7adf5-e1be-46c5-8dbf-eff78c13385c","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management","page_number":463,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"89c907a2-ef59-461a-9733-f57fa3e2106f","block_type":"box","text":"Group and manages BlackRock’s stewardship engagement and voting on behalf of clients invested in","page_number":463,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"9f43142d-6937-4587-9acc-51f52368cd0d","block_type":"box","text":"active strategies globally. BAIS is also responsible for engagement with issuers in index fixed income","page_number":463,"box":{"x":116,"y":413,"width":755,"height":12}},{"id":"df24bb18-c4a3-4475-9580-4f2305df7cb4","block_type":"box","text":"strategies, where appropriate. Our activities are informed by these Global Engagement and Voting","page_number":463,"box":{"x":116,"y":428,"width":735,"height":12}},{"id":"f2351cb0-a282-49f6-977b-ecb0e9e71498","block_type":"box","text":"Guidelines (the “Guidelines”) and insights from active investment analysts and portfolio managers, with","page_number":463,"box":{"x":117,"y":444,"width":768,"height":12}},{"id":"7383b06b-6979-4175-9aaa-6c3f30c3e051","block_type":"box","text":"whom we work closely in engaging companies and voting at shareholder meetings.","page_number":463,"box":{"x":116,"y":459,"width":622,"height":12}},{"id":"ce3509fb-6440-4c5d-8db8-7ed9bc02e1e7","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within","page_number":463,"box":{"x":117,"y":490,"width":680,"height":12}},{"id":"d0497beb-f9ff-4657-b84a-80130098b9f9","block_type":"box","text":"fundamental active investing.","page_number":463,"box":{"x":116,"y":506,"width":215,"height":12}},{"id":"694c0a28-f1d3-4ddb-8c8e-b2f4c39df69f","block_type":"box","text":"3","page_number":463,"box":{"x":333,"y":506,"width":5,"height":6}},{"id":"1c7b0c5c-ff0c-4ebf-b2c3-517cd01f986c","block_type":"box","text":"Through direct dialogue with company leadership, we seek to","page_number":463,"box":{"x":339,"y":506,"width":466,"height":12}},{"id":"4d32c8ef-cd65-4fe1-bd94-eb55911403f7","block_type":"box","text":"understand their businesses and how they manage risks and opportunities to deliver durable, risk","page_number":463,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"a43282f5-acc3-404a-9b10-ef7de62007ca","block_type":"box","text":"adjusted financial returns. Portfolio managers and stewardship specialists may engage jointly or","page_number":463,"box":{"x":116,"y":537,"width":716,"height":12}},{"id":"bcf03119-bcbb-4f41-9bad-457c632cec06","block_type":"box","text":"independently on material corporate governance matters. Our discussions focus on topics relevant to a","page_number":463,"box":{"x":117,"y":552,"width":769,"height":12}},{"id":"13919df0-70c9-48f0-9b0a-a3578068b3ab","block_type":"box","text":"company’s success over time, including governance and leadership, corporate strategy, capital","page_number":463,"box":{"x":116,"y":568,"width":711,"height":12}},{"id":"0b30dd2f-62e8-4268-b417-193bb1e0f323","block_type":"box","text":"structure and financial performance, operations and material sustainability-related risks, as well as","page_number":463,"box":{"x":116,"y":583,"width":734,"height":12}},{"id":"8c05250c-e1e9-4135-a4db-2fbabe5983f8","block_type":"box","text":"macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are","page_number":463,"box":{"x":117,"y":599,"width":717,"height":12}},{"id":"cd4909af-44a1-4c92-b6d9-5a84e0f4b504","block_type":"box","text":"generally supportive of management teams that have a track record of financial value creation. We aim","page_number":463,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"d152d159-d9bb-495b-bcfd-c19ecf8e351e","block_type":"box","text":"to build and maintain strong relationships with company leadership based on open dialogue and","page_number":463,"box":{"x":116,"y":630,"width":717,"height":12}},{"id":"2b7ba85b-3d60-418b-8a72-da45281e61c4","block_type":"box","text":"mutual respect.","page_number":463,"box":{"x":117,"y":645,"width":118,"height":12}},{"id":"a46aa02f-0448-4d00-b4e1-8879ddce2d6d","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the","page_number":463,"box":{"x":117,"y":676,"width":744,"height":12}},{"id":"a834bc05-24f7-4df2-abfa-0b1bc2475cd9","block_type":"box","text":"latitude each portfolio manager has to make independent voting decisions on their holdings. For","page_number":463,"box":{"x":117,"y":692,"width":711,"height":12}},{"id":"da1f413b-b84f-428d-a8c7-2ab1903b2bf0","block_type":"box","text":"example, BAIS will generally vote the holdings in Systematic Active Equity portfolios in accordance","page_number":463,"box":{"x":116,"y":707,"width":732,"height":12}},{"id":"70e65d21-c6a8-44ed-8e09-f61a9f3277db","block_type":"box","text":"with these guidelines. We provide voting recommendations to fundamental equity portfolio managers,","page_number":463,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"cff8630c-8eb3-4fd2-9968-99367988287d","block_type":"box","text":"who may determine to vote differently based on each portfolio’s investment objectives and strategy.","page_number":463,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"cc814eae-18fa-4fbd-a91f-99376a692f6a","block_type":"box","text":"3","page_number":463,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"b5702872-4bec-4056-9142-6fb2d9748d51","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":463,"box":{"x":170,"y":841,"width":660,"height":9}},{"id":"cab814ab-fad4-44fb-a067-1c7cf54b2107","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":463,"box":{"x":170,"y":854,"width":695,"height":9}},{"id":"31cf74f4-1fbd-4987-a109-ea4676146a10","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the effect,","page_number":463,"box":{"x":170,"y":867,"width":707,"height":9}},{"id":"05fb6dfd-6e14-4762-9610-298be8ca5d23","block_type":"box","text":"of changing or influencing control of the company.","page_number":463,"box":{"x":170,"y":880,"width":295,"height":9}},{"id":"e7ac3fc4-0b2f-4d87-b391-e2924bc0453c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":463,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"d64f91e5-1240-4aa0-8f3b-e07cf06e5df4","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":463,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"ba98f3fc-b1e3-46a2-9026-352057fa3bfb","block_type":"box","text":"4","page_number":463,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"11075a71-fbd1-4499-a304-8c860f33f354","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":463,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c14939ed-93ee-48a7-903f-2e52dfeab71b","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":464,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"a4ddbe59-466a-4bf6-82d9-f7f09821fb1c","block_type":"box","text":"management teams and board directors","page_number":464,"box":{"x":117,"y":103,"width":297,"height":12}},{"id":"c6be7df9-abcc-4cd9-9961-3af41431ed6a","block_type":"box","text":"4","page_number":464,"box":{"x":414,"y":103,"width":6,"height":6}},{"id":"0d3d719c-b16b-4411-9fd9-391da34483c7","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We","page_number":464,"box":{"x":424,"y":103,"width":461,"height":12}},{"id":"e7f9a688-29f0-4229-9439-5710986ab670","block_type":"box","text":"recognize that accepted corporate governance norms can differ across markets, and believe these","page_number":464,"box":{"x":117,"y":118,"width":736,"height":12}},{"id":"e0022ce4-68bc-4477-9800-7bfec88cdae4","block_type":"box","text":"guidelines represent globally applicable elements of governance that support a company’s ability to","page_number":464,"box":{"x":116,"y":134,"width":741,"height":12}},{"id":"deb20f0b-71d9-4345-8007-b50d01f72272","block_type":"box","text":"manage material risks and opportunities and deliver financial returns to investors. Generally, we","page_number":464,"box":{"x":117,"y":149,"width":715,"height":12}},{"id":"292c489c-3461-4e63-b2ae-c350e7a59c13","block_type":"box","text":"believe companies should observe accepted corporate governance norms within their local markets or,","page_number":464,"box":{"x":117,"y":165,"width":768,"height":12}},{"id":"eb5dd58d-1974-4667-8e1e-0c6d00c6dafc","block_type":"box","text":"particularly in markets without well-established norms, aspire to widely recognized international best","page_number":464,"box":{"x":117,"y":180,"width":746,"height":12}},{"id":"2dde860f-0daa-4852-b630-4f30585e8454","block_type":"box","text":"practices. As one of many minority shareholders, BlackRock cannot — and does not try to — direct a","page_number":464,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"53a8a4c4-6e79-40f7-b18b-2057b90a08cb","block_type":"box","text":"company’s strategy or its implementation. We look to companies to provide disclosures that explain","page_number":464,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"633c14d5-28e0-4b5d-b4e0-92295de5a80a","block_type":"box","text":"how their approach to corporate governance best aligns with the financial interests of their investors.","page_number":464,"box":{"x":117,"y":227,"width":749,"height":12}},{"id":"594270e6-a1e7-4e04-adab-dfc2313ab42b","block_type":"box","text":"Our approach to stewardship within active equities","page_number":464,"box":{"x":296,"y":258,"width":412,"height":11}},{"id":"709c34a1-63a4-45ca-a483-2ced0dbe73b8","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":464,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"694d1b6a-5cc6-4ed8-a1ab-83b22944ae0b","block_type":"box","text":"corporate governance. The voting rights attached to clients’ holdings are an important mechanism for","page_number":464,"box":{"x":116,"y":304,"width":756,"height":12}},{"id":"513ec35d-2e96-4baa-8bb4-390139799809","block_type":"box","text":"investors to express support for, or concern about, a company’s performance. As a fiduciary,","page_number":464,"box":{"x":117,"y":320,"width":692,"height":12}},{"id":"22b156a4-a902-40ea-bb65-0c7af5a08f10","block_type":"box","text":"BlackRock is legally required to make proxy voting determinations, on behalf of clients who have","page_number":464,"box":{"x":117,"y":335,"width":720,"height":12}},{"id":"975449af-e32f-4ea9-8cbc-9ee96ac57815","block_type":"box","text":"delegated voting authority to us, in a manner consistent with BlackRock’s contractual arrangements","page_number":464,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"46e1ff22-1038-4e77-84ca-8e262f01e855","block_type":"box","text":"with clients and funds.","page_number":464,"box":{"x":116,"y":366,"width":170,"height":10}},{"id":"44802ba6-55a6-4ed3-ba8e-813a1f9459e0","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As","page_number":464,"box":{"x":117,"y":397,"width":740,"height":12}},{"id":"6c078a49-3e2c-4e3c-bc02-40790ce8fa16","block_type":"box","text":"indicated below, we may vote against management recommendations when we have concerns about","page_number":464,"box":{"x":117,"y":413,"width":755,"height":12}},{"id":"516a6938-5dc9-45c3-a4f2-1b6bdc0bba83","block_type":"box","text":"how companies are serving the financial interests of our clients as their shareholders. BAIS takes a","page_number":464,"box":{"x":117,"y":428,"width":740,"height":12}},{"id":"086eecc2-7015-4e1b-aba9-045a5adc2732","block_type":"box","text":"globally consistent approach to voting but considers the different corporate governance regulations and","page_number":464,"box":{"x":116,"y":444,"width":772,"height":12}},{"id":"7e8c4959-6fb7-4f82-a2d1-69edeb01c202","block_type":"box","text":"norms across markets. Votes are determined on a case-by-case basis, in the context of a company’s","page_number":464,"box":{"x":117,"y":459,"width":753,"height":12}},{"id":"1790f67b-113e-4858-9d84-821d719fcf9e","block_type":"box","text":"situation and the investment mandate we have from clients. Please see page 19 for more information","page_number":464,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"a056cac0-9336-4475-a4e8-6b11a9b90602","block_type":"box","text":"about how we fulfill and oversee our investment stewardship responsibilities for BlackRock’s non-index","page_number":464,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"3b2b3827-9d04-4b98-9d66-f947ddc26820","block_type":"box","text":"equity strategies.","page_number":464,"box":{"x":116,"y":506,"width":125,"height":12}},{"id":"e0e5078e-5fc2-42c8-9759-dc43efff3d2f","block_type":"box","text":"5","page_number":464,"box":{"x":243,"y":506,"width":6,"height":6}},{"id":"2e1bb534-e0ca-49cf-87ed-15560e4bc414","block_type":"box","text":"Our approach to stewardship within fixed income","page_number":464,"box":{"x":303,"y":537,"width":399,"height":12}},{"id":"ef2b394b-2099-463e-898a-a8d908943466","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer","page_number":464,"box":{"x":116,"y":568,"width":695,"height":12}},{"id":"05e907c3-6338-433c-928d-cdf0a7e64be0","block_type":"box","text":"engagement is a component of fixed income investment strategies at BlackRock, particularly for those","page_number":464,"box":{"x":116,"y":583,"width":762,"height":12}},{"id":"63382804-2f6f-4289-ae17-ec1213cd3653","block_type":"box","text":"with sustainability objectives in addition to financial objectives. Most corporate governance-related","page_number":464,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"6c236886-f65b-4e1e-ad27-cd3a39f174fa","block_type":"box","text":"fixed income engagements are undertaken in conjunction with the active investment stewardship team,","page_number":464,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"6b621946-be4a-4eb6-b568-038298b5a773","block_type":"box","text":"and often active equity investors. In addition to the topics listed below, engagement with fixed income","page_number":464,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"23f43bf1-c143-4f6d-8566-ed01acb85d81","block_type":"box","text":"investment teams may help inform an issuer’s approach to structuring specialist issuances and the","page_number":464,"box":{"x":117,"y":645,"width":736,"height":12}},{"id":"f28465ee-f590-4923-b5e5-91037cd14b1d","block_type":"box","text":"standard terms and information in bond documentation.","page_number":464,"box":{"x":116,"y":661,"width":411,"height":9}},{"id":"3b00d7a6-a02f-4ab4-af05-7b0d308d9a1c","block_type":"box","text":"4","page_number":464,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"f31ab458-31ea-487d-978d-1c41725849e1","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory boards","page_number":464,"box":{"x":171,"y":828,"width":710,"height":10}},{"id":"97e0763c-6505-40e7-92b4-bcbd7121c48f","block_type":"box","text":"and their members, where relevant.","page_number":464,"box":{"x":170,"y":841,"width":210,"height":9}},{"id":"9c7959af-863d-4abf-b00f-04365be309de","block_type":"box","text":"5","page_number":464,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"06513763-3f98-4c6f-bf2b-982db5fe5349","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":464,"box":{"x":171,"y":854,"width":685,"height":9}},{"id":"8e1832cd-e3ad-4df0-b148-b6a30816bb65","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":464,"box":{"x":170,"y":867,"width":678,"height":9}},{"id":"fd192c7c-5c08-4ee2-a031-4a60688e3e08","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":464,"box":{"x":170,"y":880,"width":458,"height":9}},{"id":"99733ead-51b1-4726-8cf0-9ab988dfe2a7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":464,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"14ea5d46-4dfe-4956-8238-cf4ca749bdaf","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":464,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"7a4c34be-2023-4ba9-be85-f5e10b75743e","block_type":"box","text":"5","page_number":464,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"7dc7579f-5071-4e9c-b22f-a62749c05150","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":464,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5c54d5ae-0241-4e73-9251-73b7ff0b660a","block_type":"box","text":"Boards of Directors","page_number":465,"box":{"x":422,"y":87,"width":161,"height":10}},{"id":"63a48473-2a16-4f1c-90d6-337aa94df9f9","block_type":"box","text":"Roles and responsibilities","page_number":465,"box":{"x":117,"y":118,"width":212,"height":12}},{"id":"d71a03cf-c5f8-449c-b817-34265a2877f6","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board","page_number":465,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"f4eadfee-b3a5-47fc-98a4-7f858d644427","block_type":"box","text":"of directors that is able to advise and supervise management in an independent and objective","page_number":465,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"3956b782-1ac1-4067-b81e-7eeb10d6b8db","block_type":"box","text":"manner.","page_number":465,"box":{"x":117,"y":183,"width":59,"height":7}},{"id":"06485bc4-abe5-47f1-b5a7-0d0b27c0f9dd","block_type":"box","text":"6","page_number":465,"box":{"x":178,"y":180,"width":5,"height":6}},{"id":"f6fd7ccc-1e60-40e6-8734-b8bb6c47a749","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment","page_number":465,"box":{"x":116,"y":211,"width":762,"height":12}},{"id":"5bb2238a-c48b-4730-a998-160f1c73e844","block_type":"box","text":"and realization of a company’s strategy, purpose and culture. These constructs are interdependent","page_number":465,"box":{"x":116,"y":227,"width":738,"height":12}},{"id":"8fa2753f-049c-4b81-83dd-c58b08baf98b","block_type":"box","text":"and, when aligned, can better position a company to be resilient in the face of a changing business","page_number":465,"box":{"x":116,"y":242,"width":739,"height":12}},{"id":"10054833-c5a3-4014-82c5-898c8f699147","block_type":"box","text":"environment, help reduce the risks of corporate or employee misconduct, and attract and retain the","page_number":465,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"fb9f8edc-7984-43bd-8573-5039e25ffc66","block_type":"box","text":"caliber of workers necessary to deliver financial performance over time.","page_number":465,"box":{"x":116,"y":273,"width":535,"height":12}},{"id":"7dc5e2d3-8cb0-4979-8a25-ab3365e8144b","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies","page_number":465,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"d4404d0d-8e84-4762-9a40-5089a6dad771","block_type":"box","text":"and procedures are in place to help management meet its strategic objectives within an agreed risk","page_number":465,"box":{"x":116,"y":320,"width":742,"height":12}},{"id":"b15fb99a-7866-4360-bb32-ce5ddbc38a14","block_type":"box","text":"tolerance.","page_number":465,"box":{"x":116,"y":335,"width":78,"height":10}},{"id":"16ef33af-c869-4205-b9b8-d000fa27761b","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the","page_number":465,"box":{"x":116,"y":366,"width":739,"height":12}},{"id":"54033772-f0a9-4579-99fb-dfeb6d972ce0","block_type":"box","text":"chief executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the","page_number":465,"box":{"x":116,"y":382,"width":704,"height":12}},{"id":"b465bb8f-a6eb-4aac-bd1c-2a4ce624c3b2","block_type":"box","text":"performance of the CEO and other key executives, determining executive compensation, ensuring a","page_number":465,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"080ee8c7-ca5c-48d9-8788-93338e76fff1","block_type":"box","text":"rigorous audit, overseeing strategy execution and risk management and engaging with shareholders,","page_number":465,"box":{"x":117,"y":413,"width":753,"height":12}},{"id":"54f960f5-4100-44f0-b001-5134adb88328","block_type":"box","text":"and other stakeholders, as necessary.","page_number":465,"box":{"x":116,"y":428,"width":289,"height":12}},{"id":"8fda13fd-dfff-4305-9831-20d4d4edea94","block_type":"box","text":"Composition and effectiveness","page_number":465,"box":{"x":116,"y":467,"width":253,"height":12}},{"id":"5ac3aac1-00f7-4c4a-8770-e4a007dc34a1","block_type":"box","text":"Appointment process","page_number":465,"box":{"x":116,"y":498,"width":177,"height":12}},{"id":"f1645844-b67d-4bc1-b854-a002dc4ab2de","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to","page_number":465,"box":{"x":116,"y":529,"width":708,"height":12}},{"id":"8790858c-bd38-437c-82dc-4131b167edaf","block_type":"box","text":"ensuring the board is composed of directors with the appropriate mix of skills and experience.","page_number":465,"box":{"x":116,"y":544,"width":700,"height":12}},{"id":"13dea614-aa4e-4c52-8094-f3f8edf95938","block_type":"box","text":"Generally, the board or a sub-committee determines the general criteria given the company’s","page_number":465,"box":{"x":117,"y":560,"width":695,"height":12}},{"id":"569c2a35-4a8d-4183-a2b6-52abc76b3a07","block_type":"box","text":"circumstances (e.g., sector, maturity, geographic footprint) and any additional criteria for a specific role","page_number":465,"box":{"x":116,"y":575,"width":767,"height":12}},{"id":"fce2c59b-bef8-4fbf-985b-b8651d618324","block_type":"box","text":"being filled (e.g., financial expertise, industry track record). To inform the process, we encourage","page_number":465,"box":{"x":117,"y":591,"width":721,"height":12}},{"id":"f0d16879-e2d5-4c9f-bc2d-da1fbcb3da83","block_type":"box","text":"companies to review the skills and experience of incumbent directors to identify any gaps and whether","page_number":465,"box":{"x":116,"y":606,"width":764,"height":12}},{"id":"030c22a3-c3ae-4922-b1cb-d1bbc1064284","block_type":"box","text":"the skills and experience of a director candidate would be additive. We welcome disclosures that","page_number":465,"box":{"x":116,"y":622,"width":722,"height":12}},{"id":"5b8b4c08-364f-4ec5-8aff-9b45fefdae7b","block_type":"box","text":"explain how the board considered different skills and experience to ensure that the directors","page_number":465,"box":{"x":116,"y":637,"width":687,"height":12}},{"id":"0d6fa367-bd23-41b5-b99d-a395025e7946","block_type":"box","text":"collectively can be effective in fulfilling their responsibilities. We assess a company’s board","page_number":465,"box":{"x":116,"y":653,"width":678,"height":12}},{"id":"5e796f18-3f8e-49ea-b981-d6f1ced132dd","block_type":"box","text":"composition against that of its peer group and local market requirements.","page_number":465,"box":{"x":116,"y":668,"width":542,"height":12}},{"id":"1009131d-3305-4d57-b3e1-20f5ae737326","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any","page_number":465,"box":{"x":116,"y":699,"width":709,"height":13}},{"id":"1b70c191-92db-4ca1-88d9-8591f4cc9fe0","block_type":"box","text":"particular board composition in our engagements or voting but seek to understand how well placed a","page_number":465,"box":{"x":117,"y":715,"width":746,"height":12}},{"id":"6eaf7cc5-c671-4b66-8fe5-948ba5883c24","block_type":"box","text":"board is to act in investors’ interests. We may vote against the election of the most senior independent","page_number":465,"box":{"x":117,"y":730,"width":760,"height":13}},{"id":"f7182425-c4e8-4e8f-9adb-d3113eadc70d","block_type":"box","text":"director, or the chair of the relevant committee, where a company has not demonstrated it has an","page_number":465,"box":{"x":116,"y":746,"width":720,"height":12}},{"id":"91a23ae0-0616-47d9-a0fd-5fb73948b8de","block_type":"box","text":"appointment process that results in a high functioning board with the appropriate complement of skills","page_number":465,"box":{"x":116,"y":761,"width":753,"height":13}},{"id":"6dfa1ea1-d5ca-49ee-b4e0-402820c3dc54","block_type":"box","text":"and experience amongst the directors to support strong financial performance over time. We may vote","page_number":465,"box":{"x":116,"y":777,"width":759,"height":12}},{"id":"12d1e3f8-3c49-49ee-bb48-2453837c0540","block_type":"box","text":"against newly nominated directors who do not seem to have the appropriate skills or experience to","page_number":465,"box":{"x":116,"y":793,"width":731,"height":12}},{"id":"2b7ba448-c1b3-45a0-a0ea-ea9d20ed7d78","block_type":"box","text":"contribute to the board’s effectiveness.","page_number":465,"box":{"x":116,"y":808,"width":286,"height":9}},{"id":"6c4e091a-e6c7-4f72-8bb6-234c52a370c9","block_type":"box","text":"6","page_number":465,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"4d951ab3-3a37-4199-ae88-8fc6a83da660","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance principles","page_number":465,"box":{"x":170,"y":867,"width":706,"height":9}},{"id":"4eaf7fa0-1771-4e87-9ef5-c4f12ccd0219","block_type":"box","text":"of the US Business Roundtable as examples.","page_number":465,"box":{"x":170,"y":880,"width":268,"height":9}},{"id":"905004ff-d501-4ca5-b8bc-e7fbaa6f5898","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":465,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"5fcb3be3-ee31-4249-9dfc-38a1a6f606be","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":465,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"4ae1239e-ad64-46e3-ab84-ebfdd098440a","block_type":"box","text":"6","page_number":465,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"70c521c5-f264-4ea6-af0b-d2fecb19b500","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":465,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0724eb65-5a35-4ccd-8334-95d092df8bcd","block_type":"box","text":"Independence","page_number":466,"box":{"x":116,"y":87,"width":118,"height":12}},{"id":"668f916e-932b-4eaa-bae9-aec410cfb115","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (e.g.,","page_number":466,"box":{"x":117,"y":118,"width":706,"height":12}},{"id":"52dbcb47-113c-4dff-8556-e043347bece9","block_type":"box","text":"government or employees) is of paramount importance to the protection of the interests of minority","page_number":466,"box":{"x":116,"y":134,"width":736,"height":12}},{"id":"5a88c522-37d0-4302-8cac-a3283f3e3fc4","block_type":"box","text":"shareholders such as BlackRock’s clients. We consider it good practice for at least half the directors to","page_number":466,"box":{"x":116,"y":149,"width":766,"height":12}},{"id":"00a2ac90-f688-4926-b242-03aae518746e","block_type":"box","text":"be independent and free from conflicts of interest or undue influence.","page_number":466,"box":{"x":117,"y":165,"width":510,"height":11}},{"id":"20f35d0b-7b5c-4590-b73b-9ac17426e695","block_type":"box","text":"7","page_number":466,"box":{"x":629,"y":165,"width":5,"height":6}},{"id":"80cfd707-ffaa-4503-9bfc-9aab3eb5b7e7","block_type":"box","text":"This also helps to ensure that","page_number":466,"box":{"x":635,"y":165,"width":229,"height":11}},{"id":"35ab1eb5-c732-4bc2-9e10-44984d354280","block_type":"box","text":"board committees are composed of a sufficient number of independent directors. Companies domiciled","page_number":466,"box":{"x":117,"y":180,"width":770,"height":12}},{"id":"15620dad-593c-4906-9b73-fadf028f52d7","block_type":"box","text":"in markets with a higher threshold for board independence should meet those local requirements.","page_number":466,"box":{"x":117,"y":196,"width":727,"height":12}},{"id":"843eb92b-48bf-41a2-a0f3-efece53dba4d","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient","page_number":466,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"7da3fe86-2cb5-4e50-ae8c-f651491b1bf7","block_type":"box","text":"balance of independence. We may also vote against the election of the chair of the committee","page_number":466,"box":{"x":117,"y":242,"width":701,"height":12}},{"id":"0d10f181-2118-4504-b24b-05ed7fd4db5b","block_type":"box","text":"responsible for board composition if this is a perennial issue.","page_number":466,"box":{"x":117,"y":258,"width":453,"height":11}},{"id":"63a52c99-9a87-4256-b96a-2d2f5716575f","block_type":"box","text":"Independent board leadership","page_number":466,"box":{"x":116,"y":289,"width":245,"height":11}},{"id":"8c9274ed-6ebb-40f4-b5f8-071899aaa36f","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to","page_number":466,"box":{"x":117,"y":320,"width":718,"height":12}},{"id":"58164a1e-9821-4dc1-9495-51b111879946","block_type":"box","text":"independent board leadership. One is a non-executive, independent chair of the board who is","page_number":466,"box":{"x":117,"y":335,"width":697,"height":12}},{"id":"f348d7cc-6254-4744-9002-b7e13a41527c","block_type":"box","text":"responsible for leading the board in the effective exercise of its duties. The other is a lead or senior","page_number":466,"box":{"x":117,"y":351,"width":738,"height":12}},{"id":"d281cb2e-3e24-46d6-bb07-e560053f888d","block_type":"box","text":"independent director, who is responsible for coordinating with the other non-executive directors and","page_number":466,"box":{"x":117,"y":366,"width":742,"height":12}},{"id":"6d609013-fcbe-471a-9fba-a249e3d122b0","block_type":"box","text":"working closely with the executive chair on the board agenda and other board procedures. In this case,","page_number":466,"box":{"x":116,"y":382,"width":770,"height":12}},{"id":"a4624ce6-2f2d-42f0-8872-98618f428a95","block_type":"box","text":"the executive chair and the lead independent director work together to ensure the board is effectively","page_number":466,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"d035ca50-be18-4513-a63a-c975b7e5b2d8","block_type":"box","text":"fulfilling its responsibilities. In our view, the independent leader of the board, and/or the chair of a","page_number":466,"box":{"x":116,"y":413,"width":723,"height":12}},{"id":"d612bac9-208f-4556-8e17-915072155877","block_type":"box","text":"relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":466,"box":{"x":117,"y":428,"width":727,"height":12}},{"id":"9eb10350-552c-4f98-bf3b-1b4ee9050c29","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board","page_number":466,"box":{"x":116,"y":444,"width":691,"height":12}},{"id":"e82d3a5f-204a-4f80-b541-ab148f491a2c","block_type":"box","text":"leadership model and how it serves the interests of shareholders.","page_number":466,"box":{"x":117,"y":459,"width":489,"height":12}},{"id":"e45fff77-e317-4831-8bd9-b593602f46a1","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if","page_number":466,"box":{"x":116,"y":490,"width":740,"height":12}},{"id":"0715ddee-32e1-4a4d-958c-eb96bc78b366","block_type":"box","text":"there is not an identified independent leader of the board with clear responsibilities for board","page_number":466,"box":{"x":116,"y":506,"width":689,"height":12}},{"id":"229fcdba-decb-4c8b-b1da-95afb874d679","block_type":"box","text":"performance. We may vote against the most senior independent director if the board has a policy of","page_number":466,"box":{"x":117,"y":521,"width":744,"height":12}},{"id":"71ceb715-64f0-4ec6-a70d-a985f6dfb315","block_type":"box","text":"not engaging with shareholders.","page_number":466,"box":{"x":117,"y":537,"width":242,"height":12}},{"id":"8b731e5f-084d-4562-bccd-6c473334ab20","block_type":"box","text":"Tenure and succession","page_number":466,"box":{"x":118,"y":568,"width":189,"height":9}},{"id":"53b869af-8305-40ee-93c6-3725b6e1993e","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be","page_number":466,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"8b2a5493-447c-432f-b2f9-acad6a722f2e","block_type":"box","text":"expected to serve, in line with market norms where those exist. We find it helpful when companies","page_number":466,"box":{"x":116,"y":614,"width":733,"height":12}},{"id":"5c00fe8a-5fa4-4469-bdc5-4b0043200a15","block_type":"box","text":"disclose their approach to director tenure particularly around the contributions of directors who have","page_number":466,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"e3cccd99-a295-443a-a147-66b8c59c2e8e","block_type":"box","text":"served for longer periods than typically provided for under local practice. In our experience, long","page_number":466,"box":{"x":116,"y":645,"width":718,"height":12}},{"id":"319a3fdc-7f55-43fd-b51e-1b82c4e13f8a","block_type":"box","text":"serving directors could become less independent given their long-term relationship with management","page_number":466,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"44dacf25-0678-4779-a279-9de01c0a263c","block_type":"box","text":"and involvement in past board decisions.","page_number":466,"box":{"x":116,"y":676,"width":302,"height":12}},{"id":"73a405b2-53a5-47ed-9fb4-d2e236237451","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances","page_number":466,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"e8150eaa-0b6f-452d-af9e-ea6b4bc8280c","block_type":"box","text":"renewal through the regular introduction of directors with fresh perspectives and expertise with","page_number":466,"box":{"x":117,"y":723,"width":699,"height":12}},{"id":"19b15fa4-f18e-4c12-b195-b6075b4b4b2d","block_type":"box","text":"continuity through the retention of directors with long-term knowledge of the board and company.","page_number":466,"box":{"x":116,"y":738,"width":718,"height":12}},{"id":"477e5d1e-337d-4763-8679-1eca97663ec4","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate","page_number":466,"box":{"x":117,"y":769,"width":675,"height":12}},{"id":"26b56a55-25ae-4b04-b28d-e99cebcf0e83","block_type":"box","text":"governance best practices, we may vote against the election of the chair of the committee responsible","page_number":466,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"86bff312-1098-4061-bd3a-2584563b69a3","block_type":"box","text":"for board composition if a company does not clearly disclose its approach to director tenure and board","page_number":466,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"c6966380-1cd0-4d49-80ee-d52442c30a1c","block_type":"box","text":"7","page_number":466,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"5d5ad79b-14b5-4929-bcb3-a39c034ce326","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":466,"box":{"x":170,"y":828,"width":659,"height":10}},{"id":"45a277b6-101d-4bf4-8727-4ce505858b7f","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":466,"box":{"x":170,"y":841,"width":659,"height":9}},{"id":"37f99e19-29ac-4010-993f-c62bd29619cf","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which could, or","page_number":466,"box":{"x":170,"y":854,"width":702,"height":9}},{"id":"48b0d80a-15c7-4ba8-b8a4-10719c376e46","block_type":"box","text":"could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":466,"box":{"x":170,"y":867,"width":703,"height":9}},{"id":"40c513dc-13f7-433a-8f73-23f95569dfe0","block_type":"box","text":"and shareholders.","page_number":466,"box":{"x":170,"y":880,"width":106,"height":7}},{"id":"37cca0fe-9c1a-48f1-9982-e09596c2a8d0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":466,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"824385f8-84b4-40ad-88b0-5b7b4d62be03","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":466,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"732891a9-9d8b-48ee-8158-22d50a4213b7","block_type":"box","text":"7","page_number":466,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"8046a9f9-0af5-4d29-9baf-7d3f52bbc9b7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":466,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"daf3f913-5e60-4a0b-b0b4-556988dc1db4","block_type":"box","text":"renewal. We may vote against the election of directors who have served for more years than is typical","page_number":467,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"73e4eeae-7789-46ff-8e6d-f77d9365a513","block_type":"box","text":"in markets with specific guidance, where the case for their continued service is not evident.","page_number":467,"box":{"x":117,"y":102,"width":679,"height":13}},{"id":"4abe5e40-b8ce-480d-a3a0-9a7bf4bad6aa","block_type":"box","text":"Capacity","page_number":467,"box":{"x":117,"y":134,"width":74,"height":12}},{"id":"75c01402-ac4c-4c7e-8557-657d9e531ccb","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our","page_number":467,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"41ba235a-5b0a-4cab-94db-785dab7f89b8","block_type":"box","text":"view, an effective board will assess the ability of its members to maintain an appropriate focus on","page_number":467,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"22245f8e-9cf1-45ae-9151-6712cb7eed0e","block_type":"box","text":"board matters and the company taking into consideration competing responsibilities. We recognize that","page_number":467,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"6c638d43-7c25-4a6e-85c9-9f50cbee8329","block_type":"box","text":"board leadership roles vary across markets in responsibilities and required time commitment but note","page_number":467,"box":{"x":117,"y":211,"width":756,"height":12}},{"id":"cd7ec58e-b94d-4a1c-b621-c051ea56ebe4","block_type":"box","text":"that they are generally more intensive than a standard directorship. We will take local norms and","page_number":467,"box":{"x":116,"y":227,"width":721,"height":12}},{"id":"4608b97a-0231-4f77-b77d-981fb4d33fc5","block_type":"box","text":"practices into consideration when making our voting determinations across markets.","page_number":467,"box":{"x":117,"y":242,"width":628,"height":12}},{"id":"a688ed11-c2f0-4768-bffe-c99183d7b745","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively","page_number":467,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"912f2cd3-cd5d-483b-acee-b0096459aad2","block_type":"box","text":"fulfil their duties to the board and company.","page_number":467,"box":{"x":116,"y":289,"width":326,"height":12}},{"id":"45599550-8277-46f7-bb63-1b2a2fb2fe3a","block_type":"box","text":"Director elections","page_number":467,"box":{"x":116,"y":320,"width":147,"height":9}},{"id":"5fc1ee13-b6fa-4aef-ade4-b8b7f8a4321d","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A","page_number":467,"box":{"x":117,"y":351,"width":720,"height":12}},{"id":"1c179e8f-d199-4e2d-8bd0-613a485a016e","block_type":"box","text":"classified board structure","page_number":467,"box":{"x":116,"y":366,"width":186,"height":10}},{"id":"fb068ad9-042b-4f4c-9ce2-99e9057a025d","block_type":"box","text":"8","page_number":467,"box":{"x":303,"y":366,"width":5,"height":6}},{"id":"2fc98803-b651-4b9a-9555-3529ed987efa","block_type":"box","text":"may be justified by a company when it needs consistency and stability","page_number":467,"box":{"x":309,"y":366,"width":530,"height":12}},{"id":"ef55f22d-5922-45da-9c2c-1cc05916ddfe","block_type":"box","text":"during a time of transition, or on the basis of its business model (e.g., a non-operating company such","page_number":467,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"50dc5ee8-e8d3-4b2d-adca-b1009f5103c0","block_type":"box","text":"as closed-end funds).","page_number":467,"box":{"x":116,"y":397,"width":165,"height":12}},{"id":"1834c966-021c-4e5c-9d5d-46ae0b2ee4cf","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in","page_number":467,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"944dd582-71f3-4200-b075-2c3d08fbcf02","block_type":"box","text":"bundled slates. We look to companies to provide sufficient information on each director standing for","page_number":467,"box":{"x":117,"y":444,"width":743,"height":12}},{"id":"4af04c87-051f-4896-a74b-8dae8e44f155","block_type":"box","text":"election so that shareholders can assess their capabilities and suitability. We will generally not support","page_number":467,"box":{"x":116,"y":459,"width":765,"height":12}},{"id":"f8ec3bb7-1254-4059-8896-6083456ccdca","block_type":"box","text":"the election of directors whose names and biographical details have not been disclosed sufficiently in","page_number":467,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"a694ffeb-9c82-4ca3-958d-b038596841c7","block_type":"box","text":"advance of the shareholder meeting.","page_number":467,"box":{"x":116,"y":490,"width":278,"height":12}},{"id":"25e10d6c-4c8e-481f-a1a4-02a83ed01f48","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at","page_number":467,"box":{"x":117,"y":521,"width":746,"height":12}},{"id":"c1e5aac5-85ee-4cca-9f45-268915d51b9f","block_type":"box","text":"the shareholder meeting. Where a company’s practices differ, we look to the board to provide a","page_number":467,"box":{"x":116,"y":537,"width":712,"height":12}},{"id":"9fc9d9e1-5a29-4e23-bd8a-a1faafdded05","block_type":"box","text":"detailed explanation as to how its approach best serves investors’ interests.","page_number":467,"box":{"x":116,"y":552,"width":567,"height":12}},{"id":"afe5112c-3918-430d-8f66-f5ac7a1b38e1","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of","page_number":467,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"fb3aa5c5-ac21-45dc-8076-a57061ea354b","block_type":"box","text":"directors and/or a simple majority vote standard for director elections. We may vote against all the","page_number":467,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"82bbb8df-6a5c-4089-8e69-3e1e6a786a6f","block_type":"box","text":"directors standing for election as part of a single slate if we have concerns about the profile or","page_number":467,"box":{"x":116,"y":614,"width":701,"height":12}},{"id":"a8ce2dbb-65df-41b0-b863-7f56f1bb2f22","block_type":"box","text":"performance of an individual director.","page_number":467,"box":{"x":117,"y":630,"width":280,"height":12}},{"id":"08f8d849-a8fa-4181-b14b-dd21fc6a650b","block_type":"box","text":"Committees","page_number":467,"box":{"x":117,"y":661,"width":95,"height":9}},{"id":"243bcd75-2031-49f0-a0ab-bfee0bb04b75","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and","page_number":467,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"7bd4f930-f214-4d72-9340-c517affd52d5","block_type":"box","text":"risk, governance and human capital, and executive compensation, amongst other matters. We do not","page_number":467,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"ea658a31-9faf-4ca3-a49d-c1cb19ee982d","block_type":"box","text":"prescribe to companies what committees they should establish, but we seek to understand the board’s","page_number":467,"box":{"x":117,"y":723,"width":760,"height":12}},{"id":"cef794c3-96fa-4f3b-b254-88d04ed980c4","block_type":"box","text":"rationale for the committee structure it determines is appropriate. We note that, in some markets,","page_number":467,"box":{"x":117,"y":738,"width":717,"height":12}},{"id":"6a9489f4-0dc5-438b-b3ad-45d7c435dd6a","block_type":"box","text":"regulation requires such committees. The responsibilities of each committee should be clear, and the","page_number":467,"box":{"x":117,"y":754,"width":748,"height":12}},{"id":"7b9a9c44-23c6-47dc-9f97-a3cc16590aa0","block_type":"box","text":"board should ensure that all critical matters are assigned either to the full board or to one of the","page_number":467,"box":{"x":117,"y":769,"width":706,"height":12}},{"id":"ea022c1a-665e-435e-a9c3-9dd324628273","block_type":"box","text":"committees. It is helpful to investor understanding when the board discloses the structure,","page_number":467,"box":{"x":116,"y":785,"width":665,"height":12}},{"id":"4b3c0cdb-e828-4aa7-96c1-a3ce64c14b23","block_type":"box","text":"8","page_number":467,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"7ee8c412-a547-4ee5-bef7-691a8c11239e","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":467,"box":{"x":170,"y":867,"width":673,"height":9}},{"id":"91d07bdc-9929-4388-935a-bc862da55d50","block_type":"box","text":"directors stands for election in any one year.","page_number":467,"box":{"x":170,"y":880,"width":262,"height":9}},{"id":"df0cc80b-595d-4f53-a398-044edf5163c9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":467,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"8dc038f3-e329-4e3b-944b-b1363afb4c25","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":467,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"8f9c99f6-5dc0-41f6-9a64-82d4947109c3","block_type":"box","text":"8","page_number":467,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"6c2650cd-7f02-49f7-9b07-56a293bb87fb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":467,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9c4bf78a-8bd8-43a5-95b8-79e7bb7f51b8","block_type":"box","text":"membership, proportion of independent directors, and responsibilities of each committee. The","page_number":468,"box":{"x":117,"y":87,"width":700,"height":12}},{"id":"ef750a8b-5bb5-4f27-891c-ccdc2e1fc0bd","block_type":"box","text":"responsibilities we typically see assigned to the three most common committees include:","page_number":468,"box":{"x":117,"y":103,"width":662,"height":12}},{"id":"31886ead-bc41-4083-b01e-d943db0c5258","block_type":"box","text":"• Audit and risk – oversight responsibilities for the integrity of financial reporting, risk","page_number":468,"box":{"x":150,"y":134,"width":650,"height":12}},{"id":"d649894f-8ee6-4500-9695-28814daefbcc","block_type":"box","text":"management and compliance with legal and regulatory requirements; may also play an","page_number":468,"box":{"x":184,"y":149,"width":650,"height":12}},{"id":"566c56e8-2ff6-4d52-ace5-4fb0034097ae","block_type":"box","text":"oversight role in relation to the internal audit function and whistleblowing mechanisms.","page_number":468,"box":{"x":184,"y":165,"width":643,"height":12}},{"id":"a805d5cf-50a1-4f30-912d-206dfc91d9fb","block_type":"box","text":"• Nominating, governance and human capital – oversight responsibilities for corporate","page_number":468,"box":{"x":150,"y":188,"width":664,"height":12}},{"id":"dd3008f5-525f-40d7-ae19-947f8c89e067","block_type":"box","text":"governance principles and practices of the company, including the periodic review of board","page_number":468,"box":{"x":184,"y":203,"width":679,"height":12}},{"id":"eda22211-a663-4999-994e-838d59ea0f95","block_type":"box","text":"performance; responsibility for succession planning for CEO and key board roles, as well as","page_number":468,"box":{"x":184,"y":219,"width":687,"height":12}},{"id":"66e96daa-98c4-4354-8d1f-cdba66c02b06","block_type":"box","text":"the director appointment process; may also have oversight responsibilities for human capital","page_number":468,"box":{"x":183,"y":234,"width":690,"height":12}},{"id":"597ae009-f2bd-4895-8a32-366946ee210a","block_type":"box","text":"management strategies, including corporate culture and purpose.","page_number":468,"box":{"x":184,"y":250,"width":489,"height":12}},{"id":"bd07286a-80c4-49e8-8384-8b469f090bcb","block_type":"box","text":"• Executive compensation – determines the compensation policies and programs for the CEO","page_number":468,"box":{"x":150,"y":273,"width":723,"height":12}},{"id":"d121f1e5-259f-4789-967d-d952fcafbefa","block_type":"box","text":"and other executive officers, approves annual awards and payments under the policies; may","page_number":468,"box":{"x":184,"y":289,"width":690,"height":12}},{"id":"9b5fbead-78f9-4596-9b52-8644c9b7cac1","block_type":"box","text":"also have oversight responsibilities for firm-wide compensation policies.","page_number":468,"box":{"x":184,"y":304,"width":536,"height":12}},{"id":"21825bcd-6a45-43c7-9fa2-10d13d2924d7","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee","page_number":468,"box":{"x":116,"y":335,"width":765,"height":12}},{"id":"8e9e2a8f-9ba5-48d6-8ab3-6ea9c3c78393","block_type":"box","text":"members to convey concerns about how a committee has undertaken its responsibilities. We may vote","page_number":468,"box":{"x":117,"y":351,"width":767,"height":12}},{"id":"3fc9ad02-4c39-4c86-b064-e2899f6954bd","block_type":"box","text":"against the election of the most senior non-executive director if there is not a clearly disclosed","page_number":468,"box":{"x":116,"y":366,"width":702,"height":12}},{"id":"44f1e9a8-1d98-4153-9586-bf1e836a04af","block_type":"box","text":"approach to board committees.","page_number":468,"box":{"x":116,"y":382,"width":236,"height":12}},{"id":"84815556-4e10-4d31-8d3a-550ea46ea32a","block_type":"box","text":"Board and director evaluation","page_number":468,"box":{"x":116,"y":413,"width":243,"height":9}},{"id":"5aa2de10-14c1-455f-b13a-59c356a8ecde","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the","page_number":468,"box":{"x":116,"y":444,"width":729,"height":12}},{"id":"0b97a959-b0a1-4edc-b0ef-567fbffa8dff","block_type":"box","text":"board, the committees, the chair and individual directors. Periodically, this review could be undertaken","page_number":468,"box":{"x":117,"y":459,"width":762,"height":12}},{"id":"89d974c0-1064-4f68-9b26-80b120319eff","block_type":"box","text":"by an independent third party able to bring objective perspectives to the board on governance and","page_number":468,"box":{"x":117,"y":475,"width":732,"height":12}},{"id":"d806daa6-5daf-4df1-a81c-a66f1aed6ce2","block_type":"box","text":"performance. We encourage companies to disclose their approach to and the objectives of","page_number":468,"box":{"x":117,"y":490,"width":677,"height":12}},{"id":"0da82e36-28e9-44dd-94a7-edd44b11af19","block_type":"box","text":"evaluations, including any changes made to the board’s approach as a result.","page_number":468,"box":{"x":116,"y":506,"width":581,"height":12}},{"id":"230e658a-d17a-4b30-8823-da04acd1c008","block_type":"box","text":"Access to independent advice","page_number":468,"box":{"x":116,"y":537,"width":246,"height":12}},{"id":"35e5380d-c751-41f6-a756-f30adca311a2","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they","page_number":468,"box":{"x":116,"y":568,"width":723,"height":12}},{"id":"7bdf5e9a-4dbd-4ad9-a026-2fe6f04853dc","block_type":"box","text":"should have access to independent advice. In certain circumstances, it may be helpful to boards to","page_number":468,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"e1c3360b-c19d-4ec7-8d94-edc73bd6a7e1","block_type":"box","text":"retain independent third parties to advise on critical matters. These might include new industry","page_number":468,"box":{"x":117,"y":599,"width":703,"height":12}},{"id":"fbdb81cf-d250-48a2-ba6d-a50fc82a0362","block_type":"box","text":"developments such as emergent and disruptive technology, operating events with material","page_number":468,"box":{"x":116,"y":614,"width":676,"height":12}},{"id":"e11e4d77-3756-45d2-a9f1-526d31e65011","block_type":"box","text":"consequences for the company’s reputation and/or performance, or significant transactions. Board","page_number":468,"box":{"x":116,"y":630,"width":735,"height":12}},{"id":"db48a85e-c56d-4916-ad5e-33f710fcceae","block_type":"box","text":"committees may similarly retain third parties to advise them on specialist matters such as audit,","page_number":468,"box":{"x":116,"y":645,"width":713,"height":12}},{"id":"2e227457-c8c2-4953-9334-fd2e9c47da0f","block_type":"box","text":"compensation and succession planning.","page_number":468,"box":{"x":116,"y":661,"width":297,"height":12}},{"id":"15921a75-f55e-4870-b5c3-6bdbc4ec3c77","block_type":"box","text":"Executive compensation","page_number":468,"box":{"x":402,"y":692,"width":195,"height":12}},{"id":"24c97a6b-bfd5-4a4c-abb2-87717f99459d","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to","page_number":468,"box":{"x":117,"y":723,"width":755,"height":12}},{"id":"145be64f-8aaa-4ce3-87eb-a010588b4b23","block_type":"box","text":"recruit, retain and reward the caliber of executive management necessary to lead and operate the","page_number":468,"box":{"x":117,"y":738,"width":724,"height":12}},{"id":"46a8b630-343d-48bd-a2f8-9cf7fe1ef7a2","block_type":"box","text":"company to deliver superior financial returns over time. We focus on alignment between variable pay","page_number":468,"box":{"x":116,"y":754,"width":748,"height":12}},{"id":"7c007f89-33a8-4377-b8e9-271b767e7253","block_type":"box","text":"and a company’s financial performance.","page_number":468,"box":{"x":116,"y":769,"width":296,"height":12}},{"id":"bd7b11f7-7427-4ccb-b509-4571e24a5d41","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus","page_number":468,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"8dc645b9-7bbc-4f21-a25a-65a773d80ad0","block_type":"box","text":"that rewards performance against short-term metrics, incentives — most often share-based- that","page_number":468,"box":{"x":116,"y":816,"width":717,"height":12}},{"id":"f06c6c18-b0d7-4cf3-88d3-b25a3e09a3bb","block_type":"box","text":"reward performance against long-term metrics, and pensions and benefits. In our observation, base","page_number":468,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"afcec4d5-74da-4cfe-9886-06cce8cf1b36","block_type":"box","text":"salary, pensions and benefits are largely set relative to market norms and benchmarks. The annual","page_number":468,"box":{"x":116,"y":847,"width":741,"height":12}},{"id":"3e6d33c8-8d16-4d2b-95d5-16ea85ba99c5","block_type":"box","text":"bonus and share-based incentive, or variable pay plans, tend to be tailored to the company, its sector","page_number":468,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"6dd46382-9d42-48e2-914b-4db361370e16","block_type":"box","text":"and long-term strategy, as well as the individuals the board is seeking to recruit and motivate.","page_number":468,"box":{"x":116,"y":878,"width":699,"height":12}},{"id":"88fc506c-40d9-4c50-aa6f-7fe895cffcb4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":468,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"faa45f4c-dca0-44a1-a822-e0eb4caa33d0","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":468,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"580ece02-7efb-4201-a9f8-69af15c4c639","block_type":"box","text":"9","page_number":468,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"f8e12c44-e788-4fa7-a35b-aafbc0db6344","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":468,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"cf9806ec-2cb5-4244-b0be-d590f24dfaab","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a","page_number":469,"box":{"x":117,"y":87,"width":693,"height":12}},{"id":"3f0065c4-794e-4809-bdc8-67342c211579","block_type":"box","text":"company’s approach to executive compensation on a case-by-case basis. We rely on companies","page_number":469,"box":{"x":116,"y":103,"width":726,"height":12}},{"id":"7494c9dd-6dce-4cb9-be7d-62f545976161","block_type":"box","text":"providing sufficient quantitative and qualitative information in their disclosures to enable shareholders","page_number":469,"box":{"x":117,"y":118,"width":754,"height":12}},{"id":"25932363-a7e1-44cb-9375-2939b5fd26a5","block_type":"box","text":"to understand the compensation arrangements and assess the alignment with investors’ interests.","page_number":469,"box":{"x":116,"y":134,"width":732,"height":12}},{"id":"ee33996e-7c5f-411e-9068-a6e4fb3dcc6c","block_type":"box","text":"Features we look for in compensation arrangements include:","page_number":469,"box":{"x":117,"y":149,"width":454,"height":12}},{"id":"eefe428c-1e39-4e5c-8ddb-34401894839a","block_type":"box","text":"• Fixed pay components, including base salary, benefits and prerequisites that are appropriate","page_number":469,"box":{"x":150,"y":180,"width":727,"height":12}},{"id":"a55513f2-8e1e-4f15-b288-c172fcc5f561","block_type":"box","text":"in the context of the company’s size, sector and market.","page_number":469,"box":{"x":184,"y":196,"width":419,"height":12}},{"id":"b80791e7-11eb-4b94-9352-7310ca20a7d3","block_type":"box","text":"• Variable pay subject to performance metrics that are closely linked to the company’s short","page_number":469,"box":{"x":150,"y":219,"width":707,"height":12}},{"id":"49dd56e4-62a5-48b5-83d6-f08dfa7ef0b5","block_type":"box","text":"and long-term strategic objectives.","page_number":469,"box":{"x":184,"y":234,"width":260,"height":12}},{"id":"f9a81f6a-07eb-4a28-860b-c583b0c33886","block_type":"box","text":"• Long-term incentives that motivate sustained performance across a multi-year period.","page_number":469,"box":{"x":150,"y":258,"width":674,"height":12}},{"id":"76953866-7736-4bfa-aa8b-33721fd8dcc4","block_type":"box","text":"• A balance between fixed and variable pay, short- and long-term incentives, and specific","page_number":469,"box":{"x":150,"y":281,"width":688,"height":12}},{"id":"7642dd7f-ebf8-480e-9f83-75a1f799c59e","block_type":"box","text":"instruments (cash and equity awards) that promotes pay program durability and seldom","page_number":469,"box":{"x":184,"y":296,"width":654,"height":12}},{"id":"f92cde13-536e-4dae-9859-792332554df4","block_type":"box","text":"necessitates one-off, discretionary payments.","page_number":469,"box":{"x":184,"y":312,"width":342,"height":12}},{"id":"d83d1d1a-81ed-4e2a-bf2a-592234e7620c","block_type":"box","text":"• Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":469,"box":{"x":150,"y":335,"width":720,"height":12}},{"id":"7412ebdc-497e-4f7a-b05c-7bcd30e4f44f","block_type":"box","text":"• Board discretion, if allowed within the variable pay arrangements, to be used sparingly,","page_number":469,"box":{"x":150,"y":358,"width":683,"height":12}},{"id":"fc3e4408-e6b3-4c09-b633-0d816a0dbef2","block_type":"box","text":"responsibly and transparently.","page_number":469,"box":{"x":184,"y":374,"width":228,"height":12}},{"id":"f1c220c1-2847-448b-8e59-d0f29f64de42","block_type":"box","text":"• A requirement, that participants in long-term share-based incentive plans build a meaningful","page_number":469,"box":{"x":150,"y":397,"width":721,"height":12}},{"id":"75231fea-35c5-4b9f-b312-43cb9e16a089","block_type":"box","text":"shareholding in the company within a defined time period, as determined by the board or","page_number":469,"box":{"x":184,"y":413,"width":662,"height":12}},{"id":"35ab7193-ca05-4791-954d-0a715ed1091a","block_type":"box","text":"relevant board committee.","page_number":469,"box":{"x":184,"y":428,"width":198,"height":10}},{"id":"ff85eafa-1680-4697-932a-65606de18111","block_type":"box","text":"• Change of control provisions that appropriately balance the interests of executives and","page_number":469,"box":{"x":150,"y":451,"width":681,"height":12}},{"id":"de5e1f9a-0904-4f96-8efc-8fffb1a729aa","block_type":"box","text":"shareholders.","page_number":469,"box":{"x":184,"y":467,"width":106,"height":9}},{"id":"307650ca-771c-4f6f-b1e8-0957c5f56ae7","block_type":"box","text":"• Clawback or malus provisions that allow the company to recoup or hold back variable","page_number":469,"box":{"x":150,"y":490,"width":672,"height":12}},{"id":"66f06636-aeb3-449c-9927-10a10a631f73","block_type":"box","text":"compensation from individuals whose awards were based on fraudulent activities, misstated","page_number":469,"box":{"x":184,"y":506,"width":687,"height":12}},{"id":"44d9c968-d394-4371-884e-040774c8672c","block_type":"box","text":"financial reports, or executive misconduct.","page_number":469,"box":{"x":183,"y":521,"width":318,"height":12}},{"id":"e63b887e-626a-47d4-aed5-ce42d456e040","block_type":"box","text":"• Severance arrangements that protect the company’s interests but do not cost more than is","page_number":469,"box":{"x":150,"y":544,"width":710,"height":12}},{"id":"f6a39cc3-cdbe-487e-a667-225e7f126996","block_type":"box","text":"contractual.","page_number":469,"box":{"x":184,"y":560,"width":91,"height":9}},{"id":"7f7e0f77-10a1-4703-b54b-12356508e927","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or","page_number":469,"box":{"x":116,"y":591,"width":757,"height":12}},{"id":"f4dcbf30-6631-429e-a61c-6be44027f2c7","block_type":"box","text":"plans, or approve the compensation report where we do not see alignment between executive","page_number":469,"box":{"x":117,"y":607,"width":701,"height":11}},{"id":"2a0414cc-f070-400e-9998-a400c0c97ace","block_type":"box","text":"compensation arrangements and our clients’ financial interests. When there is not an alternative, or","page_number":469,"box":{"x":116,"y":622,"width":742,"height":12}},{"id":"e409b014-8c22-42c5-9438-b7b53113923a","block_type":"box","text":"where there have been multi-year issues with compensation misaligned with performance, we may","page_number":469,"box":{"x":116,"y":637,"width":738,"height":12}},{"id":"164db6aa-d3c9-4afc-80a8-d1c9db9160a3","block_type":"box","text":"vote against the election of the chair of the responsible committee, or the most senior independent","page_number":469,"box":{"x":116,"y":653,"width":735,"height":12}},{"id":"1fbaa70f-7f7d-479b-ab65-bf6559474696","block_type":"box","text":"director.","page_number":469,"box":{"x":116,"y":669,"width":59,"height":9}},{"id":"42905b12-789c-4e2c-8b3c-bec5e2edfd10","block_type":"box","text":"Non-executive director compensation","page_number":469,"box":{"x":350,"y":700,"width":299,"height":11}},{"id":"548d6c57-34a3-4c6b-9379-e0454fa90e64","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a","page_number":469,"box":{"x":117,"y":730,"width":706,"height":13}},{"id":"aea19bed-ac89-4436-b6bf-1d4c6847d477","block_type":"box","text":"combination of the two. Some companies also pay additional fees for service on board committees or","page_number":469,"box":{"x":116,"y":746,"width":752,"height":12}},{"id":"bb602a47-ccc4-4841-96a7-4cda645d47dd","block_type":"box","text":"in board leadership roles. We do not support non-executive directors participating in performance","page_number":469,"box":{"x":117,"y":761,"width":726,"height":13}},{"id":"625c985d-b864-4861-8d4c-4aed051c9e31","block_type":"box","text":"based incentive plans as doing so may create a conflict of interest and undermine their independence","page_number":469,"box":{"x":117,"y":777,"width":753,"height":12}},{"id":"952de30f-dd7a-410a-825d-24565ad84e0d","block_type":"box","text":"from management, whom they oversee.","page_number":469,"box":{"x":116,"y":792,"width":295,"height":13}},{"id":"0bb4810b-91de-4d94-a8a0-7b15fa01a73d","block_type":"box","text":"Capital structure","page_number":469,"box":{"x":433,"y":823,"width":133,"height":12}},{"id":"cd8d59fe-4897-4d74-b921-a22913935225","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that","page_number":469,"box":{"x":117,"y":854,"width":765,"height":13}},{"id":"09c62277-f632-42a0-ae47-37bd81143cf2","block_type":"box","text":"achieves appropriate capital allocation in support of long-term financial resilience.","page_number":469,"box":{"x":116,"y":870,"width":610,"height":12}},{"id":"d9ae6bc9-bee4-4ef7-8bdf-eebfc3c7315b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":469,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"c2a9cb53-36d4-4465-bc78-9bdd0a49e085","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":469,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"c035a775-2182-488b-9b7d-bd181a120ddf","block_type":"box","text":"10","page_number":469,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"1ce3c48c-ba0b-44b6-b77a-cb774a836640","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":469,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"66803665-8567-4055-8487-3f61f1704bd5","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why","page_number":470,"box":{"x":116,"y":87,"width":743,"height":12}},{"id":"9ef8c4f1-6735-4c70-8fdc-1a22984e3820","block_type":"box","text":"they view these practices to be aligned with shareholders’ interests. We may vote against management","page_number":470,"box":{"x":116,"y":103,"width":772,"height":12}},{"id":"6a1810f5-7c8d-4386-a534-30dccd1c6f9d","block_type":"box","text":"proposals seeking capital-related authorities, or the election of the most senior independent director, if","page_number":470,"box":{"x":117,"y":118,"width":761,"height":12}},{"id":"10871c12-f7fb-4b32-95a4-2f4f9c05bb20","block_type":"box","text":"we have concerns about a company’s approach. We may also support a shareholder proposal seeking","page_number":470,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"197d7c05-0755-4519-96f9-05baf912278f","block_type":"box","text":"conversion of shares with differentiated voting rights to a one-share, one-vote standard.","page_number":470,"box":{"x":116,"y":149,"width":655,"height":12}},{"id":"3a06a4a2-4077-4ac3-a2b4-a01dc323ad9b","block_type":"box","text":"Share","page_number":470,"box":{"x":116,"y":180,"width":46,"height":10}},{"id":"4b362076-2690-47a9-b933-6575e3c220d1","block_type":"box","text":"issuance","page_number":470,"box":{"x":168,"y":180,"width":76,"height":10}},{"id":"b5d0734d-66f8-4f79-a0c9-e0caa78248b7","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will","page_number":470,"box":{"x":116,"y":211,"width":741,"height":12}},{"id":"49f2f35a-af70-4534-9792-0a91d3c73fa0","block_type":"box","text":"generally support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent","page_number":470,"box":{"x":116,"y":227,"width":768,"height":12}},{"id":"4cd58974-9307-492f-abbf-5323a916732d","block_type":"box","text":"pre-emptive rights. We consider it good practice for companies to seek regular approval of these","page_number":470,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"2458cb1a-b58a-444c-a1c4-c6ebdeb01987","block_type":"box","text":"authorities to allow shareholders to take into consideration how prior authorities were used, as well as","page_number":470,"box":{"x":116,"y":258,"width":759,"height":11}},{"id":"edc17be4-5163-4f3d-95da-635d2344b16b","block_type":"box","text":"the current circumstances of the company and the market environment.","page_number":470,"box":{"x":116,"y":273,"width":536,"height":12}},{"id":"5c9d74bf-22b6-419e-ac9d-136b57b5e27e","block_type":"box","text":"Share buybacks","page_number":470,"box":{"x":116,"y":304,"width":133,"height":12}},{"id":"38d14097-df99-4c58-922e-fe2bd5d71a71","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management","page_number":470,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"b492408a-b137-4476-813a-0bb47a97a3c9","block_type":"box","text":"strategy and management’s determination of the appropriate balance between investment that","page_number":470,"box":{"x":116,"y":351,"width":706,"height":12}},{"id":"6c0616d9-9a04-4e02-9254-43705a4d5ea1","block_type":"box","text":"supports the long-term growth of the company and returning cash to investors. We also take into","page_number":470,"box":{"x":116,"y":366,"width":721,"height":12}},{"id":"0c218c06-ceb3-45f2-9019-73065ca269f3","block_type":"box","text":"consideration the effect of a buyback program on the company’s balance sheet and executive","page_number":470,"box":{"x":116,"y":382,"width":701,"height":12}},{"id":"4b8f179f-2ce9-49c8-95ea-522fb7d672a0","block_type":"box","text":"compensation arrangements and the price at which shares are repurchased relative to market price.","page_number":470,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"b47cf6fd-a2de-498a-93e2-85b94ec623eb","block_type":"box","text":"We consider it good practice for companies to seek regular approval of these authorities to allow","page_number":470,"box":{"x":116,"y":413,"width":721,"height":12}},{"id":"7b104398-a821-4f6e-b1ea-3a04e83f43df","block_type":"box","text":"shareholders to take into consideration how prior authorities were used, as well as the current","page_number":470,"box":{"x":116,"y":428,"width":700,"height":12}},{"id":"8514ff17-65fe-4c09-8b09-fa1b0fda6dfe","block_type":"box","text":"circumstances of the company and the market environment.","page_number":470,"box":{"x":116,"y":444,"width":451,"height":12}},{"id":"519ce0a9-0fa8-476e-8c33-b6657e2afee1","block_type":"box","text":"Dividends","page_number":470,"box":{"x":117,"y":475,"width":84,"height":9}},{"id":"35e0efac-6ee2-4a03-b774-5dff4403ec31","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further","page_number":470,"box":{"x":116,"y":506,"width":752,"height":12}},{"id":"d0b98792-b623-4efd-a317-18e490f8aafe","block_type":"box","text":"clarification where a proposed dividend appears out of line with the company’s financial position.","page_number":470,"box":{"x":116,"y":521,"width":720,"height":12}},{"id":"4b917ec4-e364-49cc-8477-5e8cc93ce893","block_type":"box","text":"Differentiated voting rights","page_number":470,"box":{"x":117,"y":552,"width":219,"height":12}},{"id":"e2c6daaf-f471-4df7-ad7f-c6ea6c9fe8bf","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same","page_number":470,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"4ec3b464-791e-4f68-bd48-258b9bfefc7c","block_type":"box","text":"economic exposure. Certain companies, particularly those new to public markets, could make the case","page_number":470,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"112e97bf-d640-496e-ae09-39f2cbf09591","block_type":"box","text":"to adopt a differentiated voting rights structure, or dual class stock. In those situations, we encourage","page_number":470,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"70bdce9e-1770-4467-84df-5db477c7cf81","block_type":"box","text":"companies to evaluate and seek approval for their capital structure on a periodic basis.","page_number":470,"box":{"x":116,"y":630,"width":650,"height":12}},{"id":"5c4dd69e-d1f3-4b44-9fb7-58dc290cc290","block_type":"box","text":"Transactions and special situations","page_number":470,"box":{"x":357,"y":661,"width":285,"height":12}},{"id":"97982fd7-4040-4ba0-a129-80297c5826d5","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own","page_number":470,"box":{"x":116,"y":692,"width":706,"height":12}},{"id":"d57595ad-6baa-4279-ba1f-c2204a37136e","block_type":"box","text":"detailed analyses of proposals.","page_number":470,"box":{"x":116,"y":707,"width":229,"height":12}},{"id":"34222897-708c-41cf-8c32-96296cd11204","block_type":"box","text":"Mergers and acquisitions","page_number":470,"box":{"x":117,"y":738,"width":201,"height":12}},{"id":"cf400654-4535-4f67-9ba6-e0219d7e98c0","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as","page_number":470,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"6d3e9ad8-0d6a-418a-83d7-8a5200ed0661","block_type":"box","text":"minority shareholders. Management should provide an assessment of the proposed transaction’s","page_number":470,"box":{"x":117,"y":785,"width":719,"height":12}},{"id":"e31318eb-ea36-4d25-8260-a5878d90acd6","block_type":"box","text":"strategic and financial rationale, along with its execution and operational risks. We review each","page_number":470,"box":{"x":116,"y":800,"width":703,"height":12}},{"id":"a379a291-c972-423a-8ac6-4b22282cf3cd","block_type":"box","text":"transaction independently based on these factors and the degree to which the transaction enhances","page_number":470,"box":{"x":116,"y":816,"width":743,"height":12}},{"id":"0c45778f-2ef4-4c2b-97e2-4e2faf643a26","block_type":"box","text":"shareholder value. The board might consider establishing an ad hoc transaction committee to","page_number":470,"box":{"x":116,"y":831,"width":699,"height":12}},{"id":"7e100110-b77f-4936-9d82-fe53fb8c18b1","block_type":"box","text":"undertake an independent assessment of a significant merger or acquisition, in advance of making its","page_number":470,"box":{"x":117,"y":847,"width":757,"height":12}},{"id":"7d6cddc1-82ec-4dd8-858d-22ad756125a9","block_type":"box","text":"recommendation to shareholders.","page_number":470,"box":{"x":117,"y":862,"width":254,"height":10}},{"id":"6cb51bfc-7adb-4591-b871-89f31674d811","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":470,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"a8f24d51-66b2-4ec9-a5cf-2df0c342cd57","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":470,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"6797cdce-225e-4d19-bdd4-802d7845987a","block_type":"box","text":"11","page_number":470,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"4cfcaab9-df8e-4d85-82a6-e90b66f6e62e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":470,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ed1cf5fa-fabb-4c45-a940-9c9737900610","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial","page_number":471,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"0436d606-02ff-41dc-b072-f954508d3ff1","block_type":"box","text":"interests.","page_number":471,"box":{"x":117,"y":103,"width":72,"height":9}},{"id":"8d2d2e9b-c8f4-4173-8488-1e7419152f77","block_type":"box","text":"Anti-takeover defenses","page_number":471,"box":{"x":116,"y":134,"width":190,"height":9}},{"id":"edb30008-40a9-4adb-9015-314f8d4a4109","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":471,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"8b430dd1-6207-4990-8619-7c6b36bd4bfe","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered","page_number":471,"box":{"x":116,"y":180,"width":731,"height":12}},{"id":"7dd74dc7-628c-40f6-9e4c-47ee9106e7df","block_type":"box","text":"long-term shareholder value. By exception, a poison pill may be supported if its purpose is to delay a","page_number":471,"box":{"x":117,"y":196,"width":751,"height":12}},{"id":"3f33f99d-be62-457a-96b9-7efe54c4fd28","block_type":"box","text":"takeover that is considered sub-optimal and enable management to seek an improved offer. Similarly,","page_number":471,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"902dc71f-65a7-4138-b951-e5f7245d57aa","block_type":"box","text":"management could make the case to use a poison pill to block a shareholder activism campaign that","page_number":471,"box":{"x":117,"y":227,"width":751,"height":12}},{"id":"4967c4e1-0a48-4238-8fb4-8165aa44e1a2","block_type":"box","text":"may be counter to the interests of other investors. Defense mechanisms introduced in these","page_number":471,"box":{"x":117,"y":242,"width":687,"height":12}},{"id":"d21663ef-a1b4-42b1-beae-541e2fd1d061","block_type":"box","text":"circumstances should be limited in term and threshold, and also be closely monitored by the","page_number":471,"box":{"x":116,"y":258,"width":688,"height":12}},{"id":"724dcea5-28fd-463f-a10f-70607ad06c29","block_type":"box","text":"independent members of the board. We consider it good practice for companies to put to a shareholder","page_number":471,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"4eb6418e-f89a-4241-bbec-e69086c5e47c","block_type":"box","text":"vote any mechanisms expected to be in place for more than 12 months.","page_number":471,"box":{"x":116,"y":289,"width":538,"height":12}},{"id":"13b9c271-36d0-4d60-85d3-3ebd05664a69","block_type":"box","text":"Shareholder activism","page_number":471,"box":{"x":116,"y":320,"width":175,"height":9}},{"id":"f9a95e6d-7930-4a70-8a09-d45dd785228f","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to","page_number":471,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"0822e009-b2e1-405f-a499-668495a6232d","block_type":"box","text":"understand their analysis and objectives, once they have publicly disclosed their campaign. We may","page_number":471,"box":{"x":117,"y":366,"width":748,"height":12}},{"id":"f76c01d9-fccc-4ff8-b8a6-ef5052229bad","block_type":"box","text":"also engage with company management and possibly board members, especially those the activist","page_number":471,"box":{"x":116,"y":382,"width":741,"height":12}},{"id":"7f0cd558-d8d1-40cb-8ba1-fde71fdf95da","block_type":"box","text":"may be seeking to replace. In our assessment, we evaluate various factors, including the concerns","page_number":471,"box":{"x":117,"y":397,"width":737,"height":12}},{"id":"a24d2a4b-e5d6-4185-8a8d-3f945f9a4f8c","block_type":"box","text":"raised by the activist and the case for change; the quality of both the activist’s and management’s","page_number":471,"box":{"x":117,"y":413,"width":728,"height":12}},{"id":"011e9f62-b446-4d93-b255-4acdc6ff3218","block_type":"box","text":"plans; and the qualifications of each party’s candidates. We evaluate each contested situation by","page_number":471,"box":{"x":117,"y":428,"width":723,"height":12}},{"id":"b76e7af2-74f1-4b5a-b8fa-369ac368f5c2","block_type":"box","text":"assessing the potential financial outcome for our clients as minority shareholders.","page_number":471,"box":{"x":116,"y":444,"width":610,"height":12}},{"id":"db172150-afe4-4e84-b2b8-b8686e96ddca","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent","page_number":471,"box":{"x":116,"y":475,"width":728,"height":12}},{"id":"3e6c92d6-d326-4a98-9951-d1234d2d23a4","block_type":"box","text":"judgment, or the relevant portfolio manager has determined that there is a case for change to enhance","page_number":471,"box":{"x":115,"y":490,"width":767,"height":12}},{"id":"2bb2f340-bd25-42e7-9bc6-9b4488c745ea","block_type":"box","text":"shareholder value, or if the incumbent board members do not demonstrate the relevant skills and","page_number":471,"box":{"x":116,"y":506,"width":725,"height":11}},{"id":"0ffeb174-7a42-4501-b903-14e6581f22ac","block_type":"box","text":"expertise or have a poor track record of protecting shareholders’ interests.","page_number":471,"box":{"x":116,"y":521,"width":556,"height":12}},{"id":"48c50c74-9df3-4edd-ae00-51a27c54a7a0","block_type":"box","text":"Significant shareholders and related party transactions","page_number":471,"box":{"x":116,"y":552,"width":446,"height":12}},{"id":"ee840647-07ac-4ab8-b5ec-d96b16e86ffc","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":471,"box":{"x":117,"y":583,"width":768,"height":12}},{"id":"46a55a43-f28a-441d-9e93-34819fd70414","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":471,"box":{"x":117,"y":599,"width":534,"height":12}},{"id":"f913c0db-abed-4844-b1f5-782a3e2abbe7","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or","page_number":471,"box":{"x":116,"y":630,"width":751,"height":12}},{"id":"4d685fe2-c548-4c6d-99b7-7b604a42bde7","block_type":"box","text":"companies affiliated with the public company, to be disclosed in detail and conducted on terms similar","page_number":471,"box":{"x":116,"y":645,"width":760,"height":12}},{"id":"095b6c38-b0fb-4e3d-b449-00f47d4812bc","block_type":"box","text":"to what would objectively have been agreed with a non-related party. In our view, such transactions","page_number":471,"box":{"x":116,"y":661,"width":737,"height":12}},{"id":"84bc2db8-25d2-4533-be8c-0f714099dd84","block_type":"box","text":"should be reviewed and approved by the independent members of the board, and if voted on, only","page_number":471,"box":{"x":116,"y":676,"width":729,"height":12}},{"id":"84208777-4d77-4677-9ddc-bb19d8a723bc","block_type":"box","text":"disinterested shareholders should vote.","page_number":471,"box":{"x":116,"y":692,"width":291,"height":9}},{"id":"447fb320-eb86-4b92-b3d7-4b3b4c8d24e6","block_type":"box","text":"Corporate reporting, risk management and audit","page_number":471,"box":{"x":307,"y":723,"width":385,"height":12}},{"id":"b8be27e1-ef86-45e7-be74-f07d6b55a420","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s","page_number":471,"box":{"x":117,"y":754,"width":737,"height":12}},{"id":"8c5bc3d3-2c85-489e-86a6-c61a94da7197","block_type":"box","text":"strategy, its implementation and financial performance, as well as to assess the quality of management","page_number":471,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"3113d32c-13cf-41b7-92c8-3f768134be2a","block_type":"box","text":"and operations and potential for the company to create shareholder value over time. We consider it","page_number":471,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"0cf9ba74-178a-41b9-a474-16384b0bb4b1","block_type":"box","text":"good practice for the board to oversee corporate reporting and the policies and procedures","page_number":471,"box":{"x":116,"y":800,"width":674,"height":12}},{"id":"01a29efc-73bf-4bb2-8561-d20d49b35462","block_type":"box","text":"underpinning the internal audit function and external audit.","page_number":471,"box":{"x":117,"y":816,"width":430,"height":12}},{"id":"279261a6-462e-48e5-a516-7a54265f0a1e","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other","page_number":471,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"1f0d5c8a-d628-4f14-86a9-ecd28c4aff32","block_type":"box","text":"stakeholders, on its financial performance and position. It should provide an accurate and balanced","page_number":471,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"002da7d9-48bb-4ae9-a001-3df0a736fc33","block_type":"box","text":"assessment of the risks and opportunities the company faces in realizing its long-term strategy.","page_number":471,"box":{"x":116,"y":878,"width":712,"height":12}},{"id":"901c3f2a-1f76-47df-a43c-61474a284387","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":471,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"7d80d1db-82c6-449a-a914-c71fa999474a","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":471,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"01e3324f-cf94-49e5-862e-bc8c2461bf4d","block_type":"box","text":"12","page_number":471,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"cc85ae27-e03a-4b45-b004-42e5205d55fe","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":471,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"18a643ab-b4bf-4eb8-974c-aa5e4b1c56e3","block_type":"box","text":"Accordingly, the assumptions made by management and reviewed by the auditor in preparing the","page_number":472,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"f98be5d5-5386-43fe-999b-b2e28933d3be","block_type":"box","text":"financial statements should be reasonable and justified. Financial statements should be prepared in","page_number":472,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"51c98311-050c-44e1-b21a-b5514b005bec","block_type":"box","text":"accordance with globally developed reporting standards and any divergence from generally accepted","page_number":472,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"85fc01d8-a14c-4af0-9034-f80d16c6c50c","block_type":"box","text":"accounting principles should be explained in detail and justified. Accounting restatements should be","page_number":472,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"8e53efea-17aa-4bf8-a40f-360527dbc7af","block_type":"box","text":"explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":472,"box":{"x":116,"y":149,"width":638,"height":12}},{"id":"c42b1009-3a43-48aa-8c31-6baef7ac556c","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":472,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"5ef52380-c3d4-45d9-9527-ef896ef68792","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction,","page_number":472,"box":{"x":117,"y":196,"width":737,"height":12}},{"id":"145cfd60-e885-45ef-a504-abbc1bce8bb0","block_type":"box","text":"non-financial information, internal control frameworks and Enterprise Risk Management systems. In","page_number":472,"box":{"x":117,"y":211,"width":743,"height":12}},{"id":"9e3825f2-749b-4256-8f91-222ea461b635","block_type":"box","text":"our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":472,"box":{"x":116,"y":227,"width":730,"height":12}},{"id":"d79ee906-ba71-40c0-8518-9978bd0f5b1b","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders. Audit committees","page_number":472,"box":{"x":116,"y":242,"width":767,"height":12}},{"id":"b3a90120-f023-49cb-84f5-935a9fd8d509","block_type":"box","text":"should have a procedure in place for assessing the independence of the auditor and the quality of the","page_number":472,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"370b14a5-45d6-44bc-a424-4ff0d07b31f7","block_type":"box","text":"external audit process annually.","page_number":472,"box":{"x":116,"y":273,"width":241,"height":12}},{"id":"f326febf-31ea-4f22-896b-4f2ec209e69b","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to","page_number":472,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"4a9629d7-764b-45c6-aa27-235e92c3def8","block_type":"box","text":"how a company manages risks or generates revenue. BAIS finds it helpful to our understanding when","page_number":472,"box":{"x":117,"y":320,"width":758,"height":12}},{"id":"070b19a1-181b-411e-9f47-a8a855580e86","block_type":"box","text":"companies provide robust, standardized disclosures on their material sustainability-related risks and","page_number":472,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"e8f78cd8-cbdb-4053-867a-ad55b348cc3c","block_type":"box","text":"opportunities. The International Sustainability Standards Board (ISSB) is one entity working to meet","page_number":472,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"c3b7e7e4-5720-43c1-b733-7e0db515f4ab","block_type":"box","text":"these objectives through its reporting standards, which may be helpful to companies in preparing such","page_number":472,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"b7202466-3778-4c8f-8df5-eb7aee60420b","block_type":"box","text":"reports.","page_number":472,"box":{"x":117,"y":382,"width":54,"height":12}},{"id":"b28c99f6-560c-4b3d-b224-bdcb78cae21d","block_type":"box","text":"9","page_number":472,"box":{"x":173,"y":382,"width":5,"height":6}},{"id":"e7cdd24c-6722-4f77-9b43-ceeda91a3d73","block_type":"box","text":"However, we do not mandate any specific disclosure framework, and note that companies in","page_number":472,"box":{"x":179,"y":382,"width":696,"height":12}},{"id":"2b25b334-6c8c-4c66-b2de-b04dc5fd9536","block_type":"box","text":"certain jurisdictions are subject to mandatory reporting requirements under standards specified by","page_number":472,"box":{"x":116,"y":397,"width":731,"height":12}},{"id":"370939ee-1111-47d3-918f-183f1df97932","block_type":"box","text":"policy makers.","page_number":472,"box":{"x":117,"y":413,"width":105,"height":12}},{"id":"22179918-1aa8-4ab9-8e71-fc4aabc41193","block_type":"box","text":"10","page_number":472,"box":{"x":224,"y":413,"width":11,"height":6}},{"id":"d5597adf-0156-41d7-bb07-4c93bda4f436","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":472,"box":{"x":117,"y":444,"width":765,"height":12}},{"id":"4fa3339b-f31d-4e92-b863-5549773a48d6","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for","page_number":472,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"0e8dcf58-0a8b-47f2-b26c-e97ac2f14f12","block_type":"box","text":"employees, and potentially other stakeholders, can be a useful mechanism for ensuring that senior","page_number":472,"box":{"x":116,"y":475,"width":738,"height":12}},{"id":"0d6c2f68-eb53-498b-87c7-55a879ace529","block_type":"box","text":"management and the board are aware of potential misconduct or breaches in risk management and","page_number":472,"box":{"x":117,"y":490,"width":745,"height":12}},{"id":"13a85d32-6e4e-49f4-babf-07c3b6a478ff","block_type":"box","text":"internal control processes.","page_number":472,"box":{"x":117,"y":506,"width":200,"height":12}},{"id":"3a300a64-c5fa-47e7-8751-7e77b8b0f42a","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in","page_number":472,"box":{"x":116,"y":537,"width":748,"height":12}},{"id":"86370ba4-07c5-426d-8a86-f2041f39fd58","block_type":"box","text":"the quality of corporate reporting. It is helpful when the audit report gives some insight into the scope","page_number":472,"box":{"x":116,"y":552,"width":752,"height":12}},{"id":"b814f16b-b522-4181-8894-3eb638f85c8a","block_type":"box","text":"and focus of the audit, as well as any critical audit matters identified and how these were resolved. A","page_number":472,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"bf1ad3af-9e05-4c06-acf7-823ceae6264e","block_type":"box","text":"comprehensive and effective audit is time and resource intensive, and the audit fee should be","page_number":472,"box":{"x":116,"y":583,"width":700,"height":12}},{"id":"d3f486ef-5cf4-4c8f-8060-2632c3395a68","block_type":"box","text":"commensurate. Fees paid to the audit firm for non-audit consulting should not exceed the audit fee to a","page_number":472,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"426258d2-19a5-4a03-9f45-c1b6c9ccd016","block_type":"box","text":"degree that may prompt concerns about the independence of the audit. The audit committee should","page_number":472,"box":{"x":116,"y":614,"width":746,"height":12}},{"id":"fcc260bf-57a1-440c-a529-68a70bd16f2b","block_type":"box","text":"explain its position on auditor tenure and how it confirmed that the auditor remained independent.","page_number":472,"box":{"x":116,"y":630,"width":728,"height":12}},{"id":"21d73017-d30c-40ee-b253-9ee2c8fb320b","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or","page_number":472,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"b5a93309-ed83-4e26-84aa-4e8b4b1520b3","block_type":"box","text":"there are material misstatements in financial reports. In markets where relevant, we may vote against a","page_number":472,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"51c6cf85-57cc-4e52-8177-aac4e4ffd464","block_type":"box","text":"proposal to approve the financial statements or the discharge of the board when we are concerned","page_number":472,"box":{"x":117,"y":692,"width":731,"height":12}},{"id":"70f8c1d6-f0c6-4deb-89c0-b8e69a85660b","block_type":"box","text":"about the quality of corporate reporting or the audit. We may vote against proposals to appoint the","page_number":472,"box":{"x":116,"y":707,"width":728,"height":12}},{"id":"68ce84b9-6211-49a2-a36f-3c51034e3be1","block_type":"box","text":"auditor, ratify the audit report, or approve the audit fee if we are concerned about the auditor’s","page_number":472,"box":{"x":116,"y":723,"width":697,"height":12}},{"id":"983eca69-2d98-4058-89f7-6d85884d30fb","block_type":"box","text":"independence, the quality of the audit, or there are material misstatements in financial reports and the","page_number":472,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"0bd26d18-f6aa-44ff-be95-afda6d81e2b8","block_type":"box","text":"board has not established reasonable remediation plans.","page_number":472,"box":{"x":117,"y":754,"width":420,"height":12}},{"id":"f500ea06-5369-4211-b008-4e0f945c20fa","block_type":"box","text":"9","page_number":472,"box":{"x":143,"y":815,"width":4,"height":5}},{"id":"e1e7cf97-41f0-4643-93ee-6dd8f55771cd","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":472,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"ced8df14-4a10-41fd-a031-b13419372185","block_type":"box","text":"Foundation. Please refer to the IFRS website to learn more about the framework and standards S1 “General","page_number":472,"box":{"x":171,"y":828,"width":641,"height":8}},{"id":"7fae6148-67e0-4e8b-b7aa-5e58726e8e01","block_type":"box","text":"Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related Disclosures.”","page_number":472,"box":{"x":171,"y":841,"width":672,"height":9}},{"id":"f3f20e7a-71e5-443c-bf3f-7e3dd99c6e1c","block_type":"box","text":"10","page_number":472,"box":{"x":144,"y":854,"width":8,"height":5}},{"id":"06a5491c-9519-4213-b147-fcfc73eab159","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional-profiles","page_number":472,"box":{"x":170,"y":854,"width":705,"height":9}},{"id":"9b3e7bcb-ec6e-4049-9dac-e480f77e5480","block_type":"box","text":"issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company","page_number":472,"box":{"x":170,"y":867,"width":615,"height":9}},{"id":"32b1a9e7-8b8e-421d-b2c2-b9aae71ce3be","block_type":"box","text":"reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en","page_number":472,"box":{"x":170,"y":880,"width":468,"height":9}},{"id":"784eaee8-c963-4520-8483-c06d650af927","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":472,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"1822694f-6c80-4813-bfdc-0b50eb5e1efe","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":472,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"4dcbc600-55b0-4661-bc77-2644f893804e","block_type":"box","text":"13","page_number":472,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"0c8aec7c-6a9d-4291-9c91-5a5e5d58ebf4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":472,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d21f5f33-e0e4-416e-a3d0-c7971f06e96f","block_type":"box","text":"Shareholder rights and protections","page_number":473,"box":{"x":360,"y":87,"width":285,"height":12}},{"id":"f6ae10ca-2241-47a8-aba3-4385c239a293","block_type":"box","text":"General shareholder meetings","page_number":473,"box":{"x":116,"y":118,"width":247,"height":12}},{"id":"0ef27e13-97a9-4a42-a5ec-d164a38db27f","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine","page_number":473,"box":{"x":117,"y":149,"width":768,"height":12}},{"id":"a42ea6b8-a6bf-4e1c-b62d-acff1927a9bf","block_type":"box","text":"items of business are discussed and voted on by shareholders in attendance or submitting proxy votes.","page_number":473,"box":{"x":117,"y":165,"width":771,"height":12}},{"id":"1d0ea944-b92b-42cc-a084-071330bfef76","block_type":"box","text":"Companies should disclose materials relevant to the shareholder meeting sufficiently in advance so","page_number":473,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"386aa692-db0a-4339-8f73-67273803811e","block_type":"box","text":"that shareholders can take them into consideration in their voting decisions. Many companies offer","page_number":473,"box":{"x":116,"y":196,"width":736,"height":12}},{"id":"868fc7d6-f69b-4423-92a0-7ce36a90f370","block_type":"box","text":"shareholders the option of participating in the meeting virtually which, whilst welcome, should not limit","page_number":473,"box":{"x":116,"y":211,"width":758,"height":12}},{"id":"82b9e4b9-ad7c-4ace-b117-9f2f803973fe","block_type":"box","text":"the rights of shareholders to participate as they would during an in-person meeting.","page_number":473,"box":{"x":116,"y":227,"width":622,"height":12}},{"id":"b7d6620a-2612-4225-93b2-10415d5ed160","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are","page_number":473,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"cb4b4873-d4d1-452b-98fd-ea1e1b3b9b59","block_type":"box","text":"not provided in a timely manner or do not provide sufficient information for us to make an informed","page_number":473,"box":{"x":117,"y":273,"width":733,"height":12}},{"id":"b28ba66b-5177-4370-816a-f70509d73a43","block_type":"box","text":"voting decision. We may vote against directors if the format of the shareholder meeting does not","page_number":473,"box":{"x":116,"y":289,"width":719,"height":12}},{"id":"e2f6addc-96cb-438b-8b1d-81adc887c19c","block_type":"box","text":"accommodate reasonable shareholder participation.","page_number":473,"box":{"x":116,"y":304,"width":392,"height":12}},{"id":"a3d8a651-3322-428e-a0ed-26b044702494","block_type":"box","text":"Bylaw amendments","page_number":473,"box":{"x":117,"y":335,"width":161,"height":12}},{"id":"ead0fb65-612f-4bd5-b0c3-56a97be32e1f","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally","page_number":473,"box":{"x":116,"y":366,"width":753,"height":12}},{"id":"ef040353-3797-452e-b65a-8999eec56e05","block_type":"box","text":"support those that are aligned with the interests of minority shareholders. Any material changes to the","page_number":473,"box":{"x":116,"y":382,"width":761,"height":12}},{"id":"060a6dd8-dcbc-4c50-888c-26c3f2c27669","block_type":"box","text":"bylaws should be explained in detail and put to a shareholder vote.","page_number":473,"box":{"x":117,"y":397,"width":500,"height":12}},{"id":"6d7cf343-689e-4226-9547-71a59afbdc08","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce","page_number":473,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"1652afa7-f994-41ad-80d4-016a04b9bfda","block_type":"box","text":"additional burdens. We may vote against directors if material changes are made to the bylaws without","page_number":473,"box":{"x":116,"y":444,"width":760,"height":12}},{"id":"3fd21ae5-da8d-46f1-be30-bde8b897f58b","block_type":"box","text":"shareholder approval.","page_number":473,"box":{"x":116,"y":459,"width":167,"height":12}},{"id":"9441ec84-062a-454b-90d8-ef6181718bd3","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":473,"box":{"x":117,"y":490,"width":688,"height":12}},{"id":"208470d5-65b9-4158-8438-e18fac25299b","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to call a special meeting of","page_number":473,"box":{"x":117,"y":506,"width":704,"height":12}},{"id":"acb3d3be-b44e-4e16-bd6f-70a40a2f835b","block_type":"box","text":"shareholders. The shareholding required to exercise this right should balance its utility with the cost to","page_number":473,"box":{"x":116,"y":521,"width":761,"height":12}},{"id":"8aba74db-4ff9-4edb-a36b-d0146b1cb255","block_type":"box","text":"the company of holding special meetings.","page_number":473,"box":{"x":116,"y":537,"width":313,"height":12}},{"id":"4595b2d9-886f-4618-b788-1506c7d5a6f8","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":473,"box":{"x":117,"y":568,"width":688,"height":12}},{"id":"d1a5e387-02b4-4143-84b1-afe48f37fe0e","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to nominate directors to the","page_number":473,"box":{"x":117,"y":583,"width":710,"height":12}},{"id":"8a8105a9-0195-43bf-9c48-95bbb7972cd2","block_type":"box","text":"company’s board. The threshold for this right should be set so that shareholders can exercise it without","page_number":473,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"b9bb5afc-4285-4147-b9bd-d6632d983447","block_type":"box","text":"being unduly disruptive to the board’s own nomination process.","page_number":473,"box":{"x":117,"y":614,"width":473,"height":12}},{"id":"47146f20-0e73-41aa-a2a2-ffe89ae454c4","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability","page_number":473,"box":{"x":116,"y":645,"width":728,"height":12}},{"id":"1bb6e8f3-1cf1-43a3-bd36-8ed2d26ec63e","block_type":"box","text":"mechanisms. We may vote for a shareholder proposal seeking the addition of either of these","page_number":473,"box":{"x":117,"y":661,"width":686,"height":12}},{"id":"50a1c8f2-9955-4d95-bcbf-da0fce868f61","block_type":"box","text":"provisions to a company’s bylaws.","page_number":473,"box":{"x":117,"y":676,"width":252,"height":12}},{"id":"030aac4c-7e48-4eda-b498-7633c1aca640","block_type":"box","text":"Change of domicile","page_number":473,"box":{"x":116,"y":707,"width":154,"height":12}},{"id":"50a127b0-8a32-4eba-8ff8-a6fb9e74745f","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the","page_number":473,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"9a9f483d-9b41-43c2-a213-d3af3364c4c8","block_type":"box","text":"rationale for doing so is consistent with the company’s long-term strategy and business model and the","page_number":473,"box":{"x":117,"y":754,"width":756,"height":12}},{"id":"2293cde7-1183-4dc3-ae0c-a1b0b6f8ef55","block_type":"box","text":"related costs are immaterial.","page_number":473,"box":{"x":117,"y":769,"width":209,"height":10}},{"id":"06ef0a92-5e21-4cfe-aada-539dad01c745","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem","page_number":473,"box":{"x":116,"y":800,"width":751,"height":12}},{"id":"8644b13b-0ff4-4b6b-b875-646ac7c04fa1","block_type":"box","text":"aligned with our clients’ financial interests.","page_number":473,"box":{"x":116,"y":816,"width":311,"height":12}},{"id":"7e5165cc-e88b-4c16-9f21-47a6c14368a1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":473,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"7221d834-f35e-44c2-8cf7-4327a2865fbc","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":473,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"620703c9-f7dc-4661-93bb-e68b154df769","block_type":"box","text":"14","page_number":473,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"9f50dfdd-d59b-40c9-8809-cfba537ebcad","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":473,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8259a5cb-171b-40af-8a47-8c4ca886856f","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":474,"box":{"x":116,"y":87,"width":504,"height":12}},{"id":"e718fdf4-58b1-4fde-ac98-1f0dce5e0be8","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and","page_number":474,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"739ef4d7-cb73-4333-9e40-5dcacfe5950a","block_type":"box","text":"explained in the context of long-term strategy and business dynamics. Such changes may significantly","page_number":474,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"6b6765b9-f7dc-45a8-9a9f-c50f54618231","block_type":"box","text":"alter an investor’s views on the suitability of a company for their investment strategy or portfolio.","page_number":474,"box":{"x":116,"y":149,"width":716,"height":12}},{"id":"326337f9-a2dc-40de-93d5-1e213ee2ba49","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its","page_number":474,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"b540513e-4fff-4cc4-a4cc-939b15dde4f2","block_type":"box","text":"business if the board has not provided a credible argument for change.","page_number":474,"box":{"x":117,"y":196,"width":530,"height":12}},{"id":"cb4d9de2-7ec7-43ec-97a9-2016fefa049c","block_type":"box","text":"Shareholder proposals","page_number":474,"box":{"x":409,"y":227,"width":187,"height":11}},{"id":"ca9112bf-e7ee-4bbb-851e-53d809ed2977","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals","page_number":474,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"9f835099-265a-4c82-bbcf-a34604ba2d13","block_type":"box","text":"to the general shareholder meeting asking a company to take a particular course of action subject to","page_number":474,"box":{"x":116,"y":273,"width":749,"height":12}},{"id":"be69716d-a5bc-43de-8993-4c1a474bec78","block_type":"box","text":"the proposal being supported by a majority of votes cast at the meeting. The topics raised can address","page_number":474,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"de876683-80a2-4ed1-8ce2-adc3a2ffd418","block_type":"box","text":"a range of matters that may be relevant to a company’s business.","page_number":474,"box":{"x":116,"y":304,"width":492,"height":12}},{"id":"9613a486-abf3-4892-8c50-e20d84427d5a","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":474,"box":{"x":116,"y":335,"width":767,"height":12}},{"id":"f03652c4-7985-402e-ac4a-dd923d3d0213","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with","page_number":474,"box":{"x":116,"y":351,"width":697,"height":12}},{"id":"50a47fbb-8b19-48eb-84af-f6e1821ebecd","block_type":"box","text":"shareholders’ interests, and what impact the proposal being acted upon might have on financial","page_number":474,"box":{"x":116,"y":366,"width":714,"height":12}},{"id":"61918266-4356-4ff4-9513-b2c6083d165d","block_type":"box","text":"performance.","page_number":474,"box":{"x":117,"y":382,"width":103,"height":12}},{"id":"069ac35a-096e-41fc-8376-9182a4764161","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or","page_number":474,"box":{"x":116,"y":413,"width":711,"height":12}},{"id":"6bd04fa5-c385-4a3b-a838-df49ffe7f877","block_type":"box","text":"performance is to engage to understand the apparent difference in perspective. If we are concerned a","page_number":474,"box":{"x":117,"y":428,"width":760,"height":12}},{"id":"ac8ecbe8-7e58-4272-bc61-5000a3a7584e","block_type":"box","text":"company is not acting in shareholders’ financial interests, we may vote against the election of directors.","page_number":474,"box":{"x":116,"y":444,"width":772,"height":12}},{"id":"40c36ac8-a776-443d-bde6-05b47e6471d6","block_type":"box","text":"We may support a relevant shareholder proposal if doing so is aligned with our clients’ financial","page_number":474,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"51fa1290-c38f-4a60-8c32-2a39950049ea","block_type":"box","text":"interests. We generally do not support shareholder proposals that are legally binding on the company,","page_number":474,"box":{"x":117,"y":475,"width":760,"height":12}},{"id":"0ec3150f-4e72-485d-b2ac-b69544edef64","block_type":"box","text":"seek to alter a company’s strategy or direct its operations, or are unrelated to how a company","page_number":474,"box":{"x":116,"y":490,"width":700,"height":12}},{"id":"88d5851a-cf4c-432a-bbca-b367f97e5319","block_type":"box","text":"manages risk or generates financial returns.","page_number":474,"box":{"x":117,"y":506,"width":331,"height":12}},{"id":"53d64709-ae65-4827-a998-a03400076ef5","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place","page_number":474,"box":{"x":117,"y":537,"width":737,"height":12}},{"id":"74bf3621-27f2-4d39-a9e3-1cabe66f7901","block_type":"box","text":"restrictions and limitations on how we can interact with the companies in which we invest on behalf of","page_number":474,"box":{"x":117,"y":552,"width":755,"height":12}},{"id":"2121e314-457c-4f87-9814-9bee03dab067","block_type":"box","text":"our clients, including our ability to submit shareholder proposals. We do not submit shareholder","page_number":474,"box":{"x":116,"y":568,"width":712,"height":12}},{"id":"dc2b017c-41dd-4f48-8f9e-27bc02fed1ed","block_type":"box","text":"proposals but can vote, on behalf of clients who authorize us to do so, on proposals put forth by others.","page_number":474,"box":{"x":117,"y":583,"width":770,"height":12}},{"id":"1536303b-0946-446e-b147-9abddf84fcda","block_type":"box","text":"Corporate political activities","page_number":474,"box":{"x":387,"y":614,"width":230,"height":12}},{"id":"ff13d6b2-7456-45c3-ba62-3c95893ad932","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the","page_number":474,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"1c9e4283-075c-4aff-b38e-b89c5810587c","block_type":"box","text":"jurisdictions in which they engage. When a corporation reports material financial risk related to policy","page_number":474,"box":{"x":115,"y":661,"width":749,"height":12}},{"id":"9c35819c-0d0d-4674-822c-247cfee2414d","block_type":"box","text":"and or regulatory changes, BAIS may seek to understand how it is addressing the material risk","page_number":474,"box":{"x":116,"y":676,"width":703,"height":12}},{"id":"4967c11a-0486-42f6-8ec1-71f62c28f801","block_type":"box","text":"identified. We seek to understand how companies engage in corporate political activities and ensure","page_number":474,"box":{"x":117,"y":692,"width":743,"height":12}},{"id":"788faa7c-d88b-4617-b95c-3fedb866b7b4","block_type":"box","text":"that their participation is consistent with their public statements on policy matters material to the","page_number":474,"box":{"x":116,"y":707,"width":709,"height":12}},{"id":"2811e92b-ce58-4421-be8d-54b1a7ce01b6","block_type":"box","text":"company’s long-term strategy. The board should be aware of the approach taken by management on","page_number":474,"box":{"x":116,"y":723,"width":750,"height":12}},{"id":"8b6077b8-4159-4e44-bc72-238fdb132849","block_type":"box","text":"corporate political activities as there can be reputational risks arising from inconsistencies between a","page_number":474,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"82b49371-4d05-4eae-8676-a0d4e6b10270","block_type":"box","text":"company’s policy engagement and stated policy positions. Companies should, as a minimum, meet all","page_number":474,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"59b040b9-1787-4274-88fd-3d582fd4bb21","block_type":"box","text":"regulatory disclosure requirements on political activities. We may engage a company where we would","page_number":474,"box":{"x":117,"y":769,"width":753,"height":12}},{"id":"c11b224d-4142-4126-adfb-6ba93fb974ce","block_type":"box","text":"like to better understand its approach to policy engagement, where relevant.","page_number":474,"box":{"x":117,"y":785,"width":563,"height":12}},{"id":"4c1f0deb-d0fc-44be-8241-e0729141bdaa","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their","page_number":474,"box":{"x":116,"y":816,"width":732,"height":12}},{"id":"c8e86c06-2e18-4d6d-80e9-10518d98ae50","block_type":"box","text":"policy priorities and the policy positions of the trade associations of which they are active members and","page_number":474,"box":{"x":117,"y":831,"width":770,"height":12}},{"id":"a37c8393-2130-4ad8-8ea7-8c06d7b3f751","block_type":"box","text":"any engagements undertaken by trade associations on behalf of members.","page_number":474,"box":{"x":116,"y":847,"width":562,"height":12}},{"id":"c25d809a-f26b-4d21-86ce-c8b5d6959c74","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":474,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"d81cb62d-3430-4fba-a021-b1084cafdc72","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":474,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"bc8f9686-b3bc-40f7-8c88-9c3a9dea3ee6","block_type":"box","text":"15","page_number":474,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"8b496336-c570-4fbb-8860-a30a700046ff","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":474,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c56e9966-ff39-42b2-81c3-945598c9d210","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s","page_number":475,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"3dd32bf3-0608-49fc-aaf5-f2e1ccccd9e8","block_type":"box","text":"disclosures are insufficient to address the material risk it has identified.","page_number":475,"box":{"x":116,"y":102,"width":530,"height":10}},{"id":"9b70e2de-4ff7-4994-bf6e-1feacb36e1e1","block_type":"box","text":"Material sustainability-related risks and opportunities","page_number":475,"box":{"x":287,"y":134,"width":431,"height":12}},{"id":"98180f80-bd08-4db9-a755-dc12a0783953","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their","page_number":475,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"f60de6c2-ece8-4e27-b936-3da704155734","block_type":"box","text":"business operations. In our experience, sustainability-related factors","page_number":475,"box":{"x":117,"y":180,"width":505,"height":12}},{"id":"ccacde9a-bbd1-4364-8fea-e4db411ae312","block_type":"box","text":"11","page_number":475,"box":{"x":624,"y":180,"width":9,"height":6}},{"id":"1145cbc6-044d-4277-bcc5-bb4e0bdc0371","block_type":"box","text":"that are relevant to a company’s","page_number":475,"box":{"x":635,"y":180,"width":249,"height":12}},{"id":"ae183607-1074-4416-ab49-a0d26c6431ff","block_type":"box","text":"business or material to its financial performance, are generally operational considerations embedded","page_number":475,"box":{"x":117,"y":196,"width":752,"height":12}},{"id":"06b8ff6a-f0f6-4d6b-afbe-eb3b2530f8f8","block_type":"box","text":"into day-to-day management systems. Certain sustainability issues may also inform long-term strategic","page_number":475,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"568e3500-f888-43f9-8831-fdc7f94049bb","block_type":"box","text":"planning, for example, investing in product innovation in anticipation of changing consumer demand or","page_number":475,"box":{"x":117,"y":227,"width":763,"height":12}},{"id":"49d89d15-12cc-453a-9f2b-bd2f79a2ff6f","block_type":"box","text":"adapting supply chains in response to changing regulatory requirements.","page_number":475,"box":{"x":116,"y":242,"width":546,"height":12}},{"id":"d33acfaa-53b3-497d-a997-0268f0f0ee80","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business","page_number":475,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"4d69b39e-bd1e-405f-adb7-b0518bbbbe72","block_type":"box","text":"relevant will vary by company business model, sector, key markets, and time horizon, amongst other","page_number":475,"box":{"x":117,"y":289,"width":751,"height":12}},{"id":"09bf820f-c7f8-4291-a31a-6f34023728fa","block_type":"box","text":"considerations. From company disclosures and our engagement, we aim to understand how","page_number":475,"box":{"x":116,"y":304,"width":689,"height":12}},{"id":"2726f293-d8dd-4c9f-8683-580db7d37f90","block_type":"box","text":"management is identifying, assessing and integrating material sustainability-related risks and","page_number":475,"box":{"x":117,"y":320,"width":694,"height":12}},{"id":"28957b51-f222-4b8d-8f66-affe5b5a7c87","block_type":"box","text":"opportunities into their business decision-making and practices. Doing so helps us undertake a more","page_number":475,"box":{"x":116,"y":335,"width":752,"height":12}},{"id":"57e4adbc-e1ba-4800-8062-66b8159ef722","block_type":"box","text":"holistic assessment of a company’s potential financial performance and the likely risk-adjusted returns","page_number":475,"box":{"x":117,"y":351,"width":761,"height":12}},{"id":"54362035-05d3-48b5-a5d1-f69012a37592","block_type":"box","text":"of an investment.","page_number":475,"box":{"x":116,"y":366,"width":133,"height":10}},{"id":"a730b376-3ba5-42ff-8385-83432e43944b","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about","page_number":475,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"41d7256c-21f5-481a-939b-7d0348ca787c","block_type":"box","text":"how a company is managing or disclosing its approach to material sustainability-related risks that may","page_number":475,"box":{"x":117,"y":413,"width":761,"height":12}},{"id":"161b0230-748c-46c3-b076-c63d8a7a6180","block_type":"box","text":"impact financial returns.","page_number":475,"box":{"x":117,"y":428,"width":181,"height":12}},{"id":"9b7b881d-043a-4b5f-b914-61aafc6dbd3f","block_type":"box","text":"Key stakeholders","page_number":475,"box":{"x":431,"y":459,"width":143,"height":12}},{"id":"4bad1fb2-65e7-4676-896e-3ecd177a6fe6","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various","page_number":475,"box":{"x":117,"y":490,"width":727,"height":12}},{"id":"198f2add-f52d-4fe1-b0af-02b46ae02ecd","block_type":"box","text":"parties on whom they depend for their success over time. It is for each company to determine their key","page_number":475,"box":{"x":117,"y":506,"width":766,"height":12}},{"id":"8a4eaf4d-feee-4822-b7ce-af1bf6b51770","block_type":"box","text":"stakeholders based on what is material to their business and long-term financial performance. For","page_number":475,"box":{"x":116,"y":521,"width":731,"height":12}},{"id":"ca1fdf2c-f297-4d44-9eef-5faad3895686","block_type":"box","text":"many companies, key stakeholders include employees, business partners (such as suppliers and","page_number":475,"box":{"x":117,"y":537,"width":726,"height":12}},{"id":"929607e1-9244-43d6-8232-e4df662b5739","block_type":"box","text":"distributors), clients and consumers, regulators, and the communities in which they operate.","page_number":475,"box":{"x":116,"y":552,"width":687,"height":12}},{"id":"c243f99b-ec53-427b-a1bf-6fb8df5e4994","block_type":"box","text":"Companies that appropriately balance the interests of investors and other stakeholders are, in our","page_number":475,"box":{"x":117,"y":568,"width":730,"height":12}},{"id":"017f3cda-ebd3-45f3-a0fe-9f8709545c33","block_type":"box","text":"experience, more likely to be financially resilient over time.","page_number":475,"box":{"x":116,"y":583,"width":438,"height":12}},{"id":"d372a27d-1946-4e3f-a146-86cd397648fd","block_type":"box","text":"Climate and decarbonization investment objectives","page_number":475,"box":{"x":295,"y":614,"width":414,"height":12}},{"id":"5bd95263-54b2-4034-bc08-aaa3357371e9","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial","page_number":475,"box":{"x":117,"y":645,"width":737,"height":12}},{"id":"528e63fb-14fe-4fb9-b3a1-a6b7120453ea","block_type":"box","text":"objectives. Consistent with the objectives of those investment strategies, our stewardship activity in","page_number":475,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"cd2789e9-80bf-4df1-82c6-f71c00a553df","block_type":"box","text":"relation to the holdings in those funds differs in some respects from BAIS’ benchmark guidelines, which","page_number":475,"box":{"x":117,"y":676,"width":765,"height":12}},{"id":"d4d36466-e496-420c-8848-f12b2920bffe","block_type":"box","text":"are described above. Specifically, for those funds’ holdings, we look to investee companies to","page_number":475,"box":{"x":116,"y":692,"width":694,"height":12}},{"id":"c9f0ad7e-9cb0-4e95-a75d-d8f5c8bbb687","block_type":"box","text":"demonstrate that they are aligned with a decarbonization pathway that means their business model","page_number":475,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"cd7617d6-3c5e-4491-8586-339f6ff35a7f","block_type":"box","text":"would be viable in a low-carbon economy, i.e., one in which global temperature rise is limited to 1.5°C","page_number":475,"box":{"x":116,"y":723,"width":754,"height":12}},{"id":"ee73f934-507d-4339-a129-06d3ac10f9b6","block_type":"box","text":"11","page_number":475,"box":{"x":144,"y":776,"width":7,"height":5}},{"id":"dff13c7e-31be-4c41-9682-cabdf9258ef7","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":475,"box":{"x":171,"y":776,"width":691,"height":10}},{"id":"b5018edd-e0de-4943-9192-84f1c8e3b085","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":475,"box":{"x":170,"y":789,"width":686,"height":10}},{"id":"72ae3bbe-89ea-4281-969f-1df3dfac435d","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":475,"box":{"x":170,"y":802,"width":682,"height":10}},{"id":"ff35bfe2-fa8a-44c8-87f6-dd44b64e8dda","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":475,"box":{"x":170,"y":815,"width":683,"height":10}},{"id":"54613aea-ebca-42f1-87e7-bf1448734f37","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will effectively","page_number":475,"box":{"x":170,"y":828,"width":708,"height":10}},{"id":"edf44966-b721-4f76-aca1-78d3cd0f9d1c","block_type":"box","text":"evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is","page_number":475,"box":{"x":170,"y":841,"width":707,"height":9}},{"id":"ec1a6ff0-8a4f-4919-9de4-444e3e461271","block_type":"box","text":"the core means by which boards can oversee the creation of durable financial value over time. Appropriate risk","page_number":475,"box":{"x":170,"y":854,"width":658,"height":9}},{"id":"48d1d976-0c2d-4693-8b02-0d7e76c889db","block_type":"box","text":"oversight of business-relevant and material sustainability-related considerations is a component of a sound governance","page_number":475,"box":{"x":170,"y":867,"width":708,"height":9}},{"id":"6d9b7e4e-9365-4835-8cd5-3d85036e4e4b","block_type":"box","text":"framework.","page_number":475,"box":{"x":170,"y":880,"width":65,"height":7}},{"id":"f72a748b-f466-4a1c-a491-89556918f052","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":475,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"15fa90ad-9bdc-4644-8c1b-a989b36278b1","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":475,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"603e72a9-98b1-455e-a0b3-4c8650755ae6","block_type":"box","text":"16","page_number":475,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"edf97d14-eac2-4c33-85e5-8d0070ba2d7e","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":475,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"81645f06-1979-4f6c-a669-fca90ee44849","block_type":"box","text":"above pre-industrial levels. In addition, clients in separately managed accounts may instruct BlackRock","page_number":476,"box":{"x":116,"y":87,"width":771,"height":12}},{"id":"39d9f408-eec0-4e8d-8647-8b237d511c3e","block_type":"box","text":"to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":476,"box":{"x":116,"y":102,"width":698,"height":13}},{"id":"a5ff5819-6a3b-4a64-bdb5-659113455409","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable","page_number":476,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"b5cedf72-106e-4385-b902-357c2cee6c7e","block_type":"box","text":"fund board or client.","page_number":476,"box":{"x":116,"y":134,"width":153,"height":9}},{"id":"82672533-21dd-4fd6-b82c-2defa64edc74","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services","page_number":476,"box":{"x":116,"y":165,"width":766,"height":12}},{"id":"29ff1fd8-db58-491d-b3c8-bf3a7ba6305c","block_type":"box","text":"that contribute to real world decarbonization or have a carbon intensive business model and face","page_number":476,"box":{"x":116,"y":180,"width":724,"height":10}},{"id":"79c07897-479a-494d-87a7-e4b8ebddf673","block_type":"box","text":"outsized impacts from the low carbon transition, based on reported and estimated scopes 1, 2, and 3","page_number":476,"box":{"x":116,"y":196,"width":754,"height":11}},{"id":"084be969-f70c-4c0b-b9ab-ae2281c0269d","block_type":"box","text":"greenhouse gas emissions. These companies should provide disclosures that set out their","page_number":476,"box":{"x":116,"y":211,"width":675,"height":12}},{"id":"8ea91135-fe68-490f-9844-b0c010cc2a24","block_type":"box","text":"governance, strategy, risk management processes and metrics and targets relevant to","page_number":476,"box":{"x":116,"y":227,"width":646,"height":12}},{"id":"40801a36-fa76-44b4-a78e-da85223e4eea","block_type":"box","text":"decarbonization. It is helpful to investors’ understanding when these disclosures include an explanation","page_number":476,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"3685b020-2bb7-46a9-8c3b-f1388e0ad0e1","block_type":"box","text":"of the decarbonization scenarios a company is using in its near- and long-term planning, as well as its","page_number":476,"box":{"x":116,"y":258,"width":760,"height":12}},{"id":"6249a7bd-8ce2-4e1e-abb6-b73edf65a63b","block_type":"box","text":"scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for","page_number":476,"box":{"x":116,"y":273,"width":739,"height":12}},{"id":"0585844a-6531-498f-9126-e4bad0a7be2b","block_type":"box","text":"scope 1 and 2 emissions.","page_number":476,"box":{"x":116,"y":289,"width":194,"height":12}},{"id":"d2153634-76a0-4e9f-b293-431b2958b72f","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against","page_number":476,"box":{"x":117,"y":320,"width":744,"height":12}},{"id":"f68787b9-368d-4ed2-a88d-cc23a1e4f2e5","block_type":"box","text":"directors or support for a relevant shareholder proposal if a company does not appear to be adequately","page_number":476,"box":{"x":116,"y":335,"width":771,"height":12}},{"id":"820b496f-1d02-4e86-bb0e-065b850c4d89","block_type":"box","text":"acting to address or disclosing material climate-related risks, consistent with the parameters set out in","page_number":476,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"ea25b25a-65e7-48d0-8107-96e923a76b61","block_type":"box","text":"these climate- and decarbonization-specific guidelines. We may recommend supporting shareholder","page_number":476,"box":{"x":116,"y":366,"width":749,"height":12}},{"id":"7a32b661-fae2-47da-85c2-b844de9e18aa","block_type":"box","text":"proposals seeking information relevant to a company’s stated low-carbon transition strategy or targets","page_number":476,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"63cc3e3a-b6c3-482f-a326-41b56a2d9d81","block_type":"box","text":"that the company does not currently provide and that would be helpful to investment decision-making.","page_number":476,"box":{"x":116,"y":397,"width":760,"height":12}},{"id":"cd757eb9-6b25-43d6-aeb5-43b6acfda705","block_type":"box","text":"We would not recommend support for shareholder proposals that seek to constrain board or","page_number":476,"box":{"x":116,"y":413,"width":689,"height":12}},{"id":"e04ca5d5-ed88-4495-a194-bf7b4e00e27b","block_type":"box","text":"management decision-making or direct specific business or strategic decisions. As under the BAIS","page_number":476,"box":{"x":117,"y":428,"width":736,"height":12}},{"id":"31c0b501-fab2-44f9-92e5-ea47e91b4518","block_type":"box","text":"benchmark approach, the active portfolio managers are ultimately responsible for voting consistent","page_number":476,"box":{"x":117,"y":444,"width":737,"height":12}},{"id":"13e09772-d439-44b2-839d-845248f936c4","block_type":"box","text":"with their investment mandate and fund objectives. For the funds and accounts in scope, voting on","page_number":476,"box":{"x":116,"y":459,"width":736,"height":12}},{"id":"4220a9c8-e800-4365-af92-bc95a8e4faf2","block_type":"box","text":"matters not related to climate risk and the energy transition is undertaken in line with BAIS’ benchmark","page_number":476,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"940eae57-0745-4eb9-b928-5be662a08704","block_type":"box","text":"guidelines.","page_number":476,"box":{"x":116,"y":490,"width":85,"height":12}},{"id":"e3491dc3-5e04-4ab0-89f3-6d11ec5c09f2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":476,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"911d18af-a03e-45dc-ab01-15ac92e3e343","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":476,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"d193f661-9962-4ffa-812b-c54a7a3cf04e","block_type":"box","text":"17","page_number":476,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"31ac9df3-ea48-4a24-8da4-77736d8e2ca8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":476,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0ad45b82-8c4d-46b9-ae0a-a95bdbaea46b","block_type":"box","text":"Appendix 1: How we fulfil and oversee our investment stewardship responsibilities","page_number":477,"box":{"x":116,"y":87,"width":668,"height":12}},{"id":"1ddc2f3e-a705-4b2c-9919-50fab7e99e38","block_type":"box","text":"Oversight","page_number":477,"box":{"x":116,"y":118,"width":83,"height":12}},{"id":"ff6552b0-18e1-4daf-89a4-89ff71b0c3f4","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including","page_number":477,"box":{"x":116,"y":149,"width":764,"height":12}},{"id":"59e2fa7b-f31a-4d7f-856a-787b53d2afd3","block_type":"box","text":"voting in accordance with the BlackRock Active Investment Stewardship Global Engagement and","page_number":477,"box":{"x":116,"y":165,"width":726,"height":12}},{"id":"aa9c473d-e233-43ac-85a6-c2b24335e42a","block_type":"box","text":"Voting Guidelines (the “Guidelines”), which require the application of professional judgment and","page_number":477,"box":{"x":116,"y":180,"width":714,"height":12}},{"id":"33790e83-c547-4662-8100-8585ba1943f2","block_type":"box","text":"consideration of each company’s unique circumstances, as well as input from active investors. BAIS is","page_number":477,"box":{"x":116,"y":196,"width":765,"height":12}},{"id":"7290e4aa-7c85-4cc8-a570-88a3eace7036","block_type":"box","text":"independent from BlackRock Investment Stewardship in our engagement and voting activities,","page_number":477,"box":{"x":117,"y":211,"width":704,"height":12}},{"id":"dd7870ee-1f79-417e-b6c9-99bfdffc52a8","block_type":"box","text":"reporting lines, and oversight.","page_number":477,"box":{"x":117,"y":227,"width":224,"height":12}},{"id":"457e5ee0-5988-47c0-94c9-598c84b04e02","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders","page_number":477,"box":{"x":116,"y":258,"width":765,"height":11}},{"id":"fe50b9c8-b385-439a-8451-5d57f37db688","block_type":"box","text":"in BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s","page_number":477,"box":{"x":117,"y":273,"width":742,"height":12}},{"id":"2871656c-1f79-48e4-aa59-ac2a96c8acbf","block_type":"box","text":"approach to investment stewardship on non-index equity investment strategies. The Group may advise","page_number":477,"box":{"x":116,"y":289,"width":769,"height":12}},{"id":"be898019-40d6-44ee-a569-c0be08a191d2","block_type":"box","text":"on and review amendments to BAIS’ policies and practices. It does not determine voting decisions,","page_number":477,"box":{"x":116,"y":304,"width":739,"height":12}},{"id":"d4d1b6e2-422e-438d-9399-716af47c2cb0","block_type":"box","text":"which are the responsibility of BAIS and the relevant active equity investors.","page_number":477,"box":{"x":116,"y":320,"width":568,"height":12}},{"id":"2c9077d0-94b7-4427-bfa4-87e4db674832","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues,","page_number":477,"box":{"x":117,"y":351,"width":721,"height":12}},{"id":"65dae1a0-eb6a-46c2-b797-cd9958e63038","block_type":"box","text":"executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a","page_number":477,"box":{"x":116,"y":366,"width":757,"height":12}},{"id":"6ff709b8-fac0-44c8-a529-b74cad93ced1","block_type":"box","text":"manner consistent with the Guidelines. BAIS also conducts research on corporate governance issues","page_number":477,"box":{"x":117,"y":382,"width":757,"height":12}},{"id":"504c7536-5e07-4910-aa25-2f01576c40bb","block_type":"box","text":"and participates in industry discussions to contribute to and keep abreast of important developments in","page_number":477,"box":{"x":116,"y":397,"width":768,"height":12}},{"id":"97d36357-dd1a-477d-8878-f11fdc3f12e0","block_type":"box","text":"the corporate governance field. BAIS may use third parties for certain of the foregoing activities and","page_number":477,"box":{"x":116,"y":413,"width":744,"height":12}},{"id":"2ecd8c3b-9d71-45b6-9207-dc6587a55e7b","block_type":"box","text":"performs oversight of those third parties (see “Use and oversight of third-party vote services providers”","page_number":477,"box":{"x":117,"y":428,"width":765,"height":12}},{"id":"803e8d52-e611-44b0-a8de-c06e28327532","block_type":"box","text":"below).","page_number":477,"box":{"x":117,"y":444,"width":58,"height":12}},{"id":"57ceaa0c-911d-4a89-967e-72ebf48e6170","block_type":"box","text":"Voting guidelines and vote execution","page_number":477,"box":{"x":116,"y":475,"width":302,"height":12}},{"id":"9287ef85-4dcc-4eae-9d63-947ef778a10b","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the","page_number":477,"box":{"x":117,"y":506,"width":735,"height":12}},{"id":"59d05d7b-0718-4247-9595-e0bcbd99bb05","block_type":"box","text":"voting items submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have","page_number":477,"box":{"x":116,"y":521,"width":728,"height":12}},{"id":"811bd1a9-16bd-4b9b-9c28-d6b122d8d368","block_type":"box","text":"voting authority. BlackRock votes (or refrains from voting) for each Fund for which we have voting","page_number":477,"box":{"x":116,"y":537,"width":730,"height":12}},{"id":"133562f8-c6ad-40a8-b3b5-56731b99a2c0","block_type":"box","text":"authority based on our evaluation of the alignment of the voting items with the long-term economic","page_number":477,"box":{"x":116,"y":552,"width":734,"height":12}},{"id":"dfa5b00d-fc5e-48f4-ae23-8ed27df3f8c9","block_type":"box","text":"interests of our clients, in the exercise of our independent business judgment, and without regard to the","page_number":477,"box":{"x":117,"y":568,"width":771,"height":12}},{"id":"69fa44fd-1a16-4d3b-b453-1f18e8f7e114","block_type":"box","text":"relationship of the issuer (or any shareholder proponent or dissident shareholder) to the Fund, the","page_number":477,"box":{"x":117,"y":583,"width":730,"height":12}},{"id":"72c7b2e7-c0a6-414e-abc5-f06876816693","block_type":"box","text":"Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":477,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"a54c3170-0fa5-41fe-8ca0-815b454978e3","block_type":"box","text":"management policies and procedures,” below).","page_number":477,"box":{"x":117,"y":614,"width":353,"height":12}},{"id":"7e2a3d92-ffcb-43c3-a835-7ce56d6918eb","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the","page_number":477,"box":{"x":116,"y":645,"width":759,"height":12}},{"id":"958b5c7c-7f9c-4e8a-98e6-ffc23ac45aae","block_type":"box","text":"Guidelines, although portfolio managers have the right to vote differently on their holdings if they","page_number":477,"box":{"x":117,"y":661,"width":713,"height":12}},{"id":"f2507707-be6e-484a-aac3-c922249d4d11","block_type":"box","text":"determine doing so is more aligned with the investment objective and financial interests of clients","page_number":477,"box":{"x":116,"y":676,"width":719,"height":12}},{"id":"30cea017-d48e-4943-9ba6-494df2d9e5c2","block_type":"box","text":"invested in the funds they manage.","page_number":477,"box":{"x":117,"y":692,"width":258,"height":12}},{"id":"af8ffd4d-5994-4716-b927-9826cfbd1141","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case","page_number":477,"box":{"x":116,"y":723,"width":726,"height":12}},{"id":"4277050b-da6f-459e-8190-34285e831915","block_type":"box","text":"basis, in the context of the individual circumstances of each company and the specific issue under","page_number":477,"box":{"x":117,"y":738,"width":728,"height":12}},{"id":"d2713265-c931-4fc3-92e3-68d56affe55f","block_type":"box","text":"review. As such, the Guidelines do not indicate how BAIS will vote in every instance. Rather, they","page_number":477,"box":{"x":117,"y":754,"width":723,"height":12}},{"id":"5e2f0fd8-10be-45df-87d4-c3e57d3d06f1","block_type":"box","text":"reflect our view about corporate governance issues generally, and provide insight into how we typically","page_number":477,"box":{"x":117,"y":769,"width":761,"height":12}},{"id":"07d14a8f-ad48-4592-be71-c5a3b074c4b7","block_type":"box","text":"approach issues that are commonly put to a shareholder vote. The Guidelines are reviewed annually","page_number":477,"box":{"x":116,"y":785,"width":747,"height":12}},{"id":"5b74b003-08cc-48f2-af12-c9f2853311d4","block_type":"box","text":"and updated as necessary to reflect changes in market practices, developments in corporate","page_number":477,"box":{"x":116,"y":800,"width":688,"height":12}},{"id":"8b5888eb-b94b-4731-b3ff-db0269f87050","block_type":"box","text":"governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":477,"box":{"x":116,"y":816,"width":760,"height":12}},{"id":"6f52ffe5-b76e-4535-8200-fa917af25b9e","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":477,"box":{"x":116,"y":831,"width":751,"height":12}},{"id":"f05539ea-6f58-49ca-9b47-20203b0f84a9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":477,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"4d61d317-03e9-4e64-af18-42f57fddfa52","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":477,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"490d1301-f528-4a8f-822e-fc9e531ec4d9","block_type":"box","text":"18","page_number":477,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"995738a6-2c88-425d-bc89-9bdf380ea685","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":477,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5f2132be-cb71-470c-8193-dd5626008fd1","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such","page_number":478,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"9e25be98-a0f2-4f1e-958d-c3dd7cd0fa4d","block_type":"box","text":"proxies, as well as the desirability of voting such proxies. These issues include, but are not limited to: i)","page_number":478,"box":{"x":117,"y":102,"width":768,"height":13}},{"id":"6c5213c5-231f-44c0-8765-e6ddd22a10af","block_type":"box","text":"untimely notice of shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii)","page_number":478,"box":{"x":117,"y":118,"width":735,"height":12}},{"id":"5488c9d0-7890-4916-ae25-8d53954977f2","block_type":"box","text":"requirements to vote proxies in person; iv) “share-blocking” (requirements that investors who exercise","page_number":478,"box":{"x":117,"y":134,"width":759,"height":12}},{"id":"45c78306-ba5f-4968-a330-3360127394e3","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":478,"box":{"x":116,"y":149,"width":728,"height":12}},{"id":"12e41e19-aaeb-459e-b49e-c2c8f3125f27","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); v) potential difficulties in","page_number":478,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"4f102a74-9b7d-46bd-af24-349f87b5a175","block_type":"box","text":"translating the proxy; vi) regulatory constraints; and vii) requirements to provide local agents with","page_number":478,"box":{"x":116,"y":180,"width":723,"height":12}},{"id":"121dabe3-8a11-4025-98fc-6e1766b5b0e1","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":478,"box":{"x":117,"y":196,"width":706,"height":12}},{"id":"a5b478a3-1834-4a30-bd37-45ed0888d4cc","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":478,"box":{"x":116,"y":211,"width":742,"height":12}},{"id":"c1ee437f-f309-4401-9ba2-fedfbec34e50","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine","page_number":478,"box":{"x":117,"y":242,"width":759,"height":12}},{"id":"0d999836-d6cf-4e27-9def-f0025a55d9ff","block_type":"box","text":"that it is generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full","page_number":478,"box":{"x":116,"y":258,"width":723,"height":12}},{"id":"0198257f-3deb-4f49-b740-06a001a6a3af","block_type":"box","text":"allocation) if the costs (including but not limited to opportunity costs associated with share-blocking","page_number":478,"box":{"x":116,"y":273,"width":737,"height":12}},{"id":"e725d1e0-20af-4b2f-b387-02e6a6a3745e","block_type":"box","text":"constraints) associated with exercising a vote are expected to outweigh the benefit the client would","page_number":478,"box":{"x":116,"y":289,"width":739,"height":12}},{"id":"f1d2a348-96be-48bb-bbfb-0e4961c59695","block_type":"box","text":"derive by voting on the proposal.","page_number":478,"box":{"x":116,"y":304,"width":248,"height":12}},{"id":"dc99b3ef-8793-464e-b3d4-793a4c83064a","block_type":"box","text":"Voting Choice","page_number":478,"box":{"x":116,"y":335,"width":118,"height":12}},{"id":"749c4f39-63cd-478d-a4f8-2a116de52435","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to","page_number":478,"box":{"x":117,"y":366,"width":733,"height":12}},{"id":"c68bed05-28a8-4839-ae43-499cdc8d4d0e","block_type":"box","text":"participate in the proxy voting process where legally and operationally viable.","page_number":478,"box":{"x":117,"y":382,"width":575,"height":12}},{"id":"16ef2177-48aa-40d6-918e-fa96f7e4961d","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in","page_number":478,"box":{"x":116,"y":413,"width":748,"height":12}},{"id":"4c40e3cb-43a2-4301-bd68-cc36391b128b","block_type":"box","text":"the U.S., UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In","page_number":478,"box":{"x":116,"y":428,"width":716,"height":12}},{"id":"759b62ae-da44-47bd-a998-7c28ed61637d","block_type":"box","text":"addition, institutional clients in separately managed accounts (SMAs) are eligible for BlackRock Voting","page_number":478,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"098f38c8-b0db-4590-8643-1868da93aaa3","block_type":"box","text":"Choice regardless of their investment strategies.","page_number":478,"box":{"x":117,"y":459,"width":357,"height":12}},{"id":"c7a2001b-cb27-405d-bb30-250277aee9aa","block_type":"box","text":"12","page_number":478,"box":{"x":477,"y":459,"width":11,"height":6}},{"id":"5cd05e44-f49e-48e6-a540-6abe7db9453c","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently","page_number":478,"box":{"x":116,"y":490,"width":740,"height":12}},{"id":"e613326b-5faf-44fb-9b36-891575cf0519","block_type":"box","text":"depending on whether our clients have authorized BAIS to vote on their behalf, have authorized","page_number":478,"box":{"x":116,"y":506,"width":715,"height":12}},{"id":"3a6452b4-251e-4295-b16f-23a8d8c1f713","block_type":"box","text":"BlackRock to vote in accordance with a third-party policy, or have elected to vote shares in accordance","page_number":478,"box":{"x":117,"y":521,"width":769,"height":12}},{"id":"9be51e24-7a8b-430f-949d-062716a07be2","block_type":"box","text":"with their own policy. Our clients have greater control over proxy voting because of Voting Choice.","page_number":478,"box":{"x":116,"y":537,"width":727,"height":12}},{"id":"29285bea-00ff-4f25-a4be-c9e1de6e78cf","block_type":"box","text":"13","page_number":478,"box":{"x":846,"y":537,"width":10,"height":6}},{"id":"01f48ed6-6df4-4e27-b359-bd11947efde4","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":478,"box":{"x":117,"y":568,"width":452,"height":12}},{"id":"685e4f00-5149-4924-b945-d228cb0c49f0","block_type":"box","text":"Third-party vote services providers — or proxy research firms — provide research and","page_number":478,"box":{"x":116,"y":599,"width":646,"height":12}},{"id":"b9d40e7f-2619-4994-b7eb-318cb8926628","block_type":"box","text":"recommendations on proxy votes, as well as voting infrastructure. BlackRock contracts primarily with","page_number":478,"box":{"x":117,"y":614,"width":752,"height":12}},{"id":"e22d251a-dc93-40ef-b5d5-538c49f8a522","block_type":"box","text":"the vote services provider ISS and leverages its online platform to supply research and support voting,","page_number":478,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"876babbc-f3c9-4054-8af8-b6bf7c5152f7","block_type":"box","text":"record keeping, and reporting processes. We also use Glass Lewis’ research and analysis as an input","page_number":478,"box":{"x":117,"y":645,"width":761,"height":12}},{"id":"8fa15d53-9b98-4bed-9182-22247407a132","block_type":"box","text":"into our voting process. It is important to note that, although proxy research firms provide important","page_number":478,"box":{"x":117,"y":661,"width":733,"height":12}},{"id":"21d45fcb-aee3-4db1-abcf-1122bc7a0a56","block_type":"box","text":"data and analysis, BAIS does not rely solely on their information or follow their voting","page_number":478,"box":{"x":116,"y":676,"width":629,"height":12}},{"id":"d8bb3eb8-1db2-473d-8409-5797a7da788c","block_type":"box","text":"recommendations. A company’s disclosures, our engagements and voting, investment colleagues’","page_number":478,"box":{"x":117,"y":692,"width":728,"height":12}},{"id":"e3c970f4-9782-4710-a0f0-0cfdddbc3e62","block_type":"box","text":"insights and our Guidelines are important inputs into our voting decisions on behalf of clients.","page_number":478,"box":{"x":117,"y":707,"width":689,"height":12}},{"id":"27bcc877-b0cd-47bc-94f9-cabd1c3fa303","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to","page_number":478,"box":{"x":117,"y":738,"width":722,"height":12}},{"id":"e12ba6cc-5457-49ba-83f5-cc2e6ef12673","block_type":"box","text":"streamline the voting process by making voting recommendations based on BAIS’ Guidelines when the","page_number":478,"box":{"x":116,"y":754,"width":765,"height":12}},{"id":"744410f6-431c-4b2f-b856-5f6ca3c2028c","block_type":"box","text":"items on a shareholder meeting agenda are routine. Agenda items that are not routine are referred","page_number":478,"box":{"x":117,"y":769,"width":730,"height":12}},{"id":"90e3de8f-1f0b-48ec-bac3-88bad75d0d90","block_type":"box","text":"back to BAIS to assess, escalate as necessary to the relevant portfolio managers and vote. BAIS","page_number":478,"box":{"x":117,"y":785,"width":719,"height":12}},{"id":"64fbb020-7e13-4058-b6fc-21a074a83a7a","block_type":"box","text":"reviews and can override the recommendations of the vote services provider at any time prior to the","page_number":478,"box":{"x":117,"y":800,"width":739,"height":12}},{"id":"e8d1673a-60bc-4e84-a11c-142b31dd0778","block_type":"box","text":"12","page_number":478,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"adf72dd1-7245-41c3-bbba-fb7f6fd3c922","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the","page_number":478,"box":{"x":170,"y":841,"width":679,"height":9}},{"id":"0dc0757e-c96a-4449-b1d7-5f8c2a4f0f52","block_type":"box","text":"policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast","page_number":478,"box":{"x":170,"y":854,"width":695,"height":9}},{"id":"5005131f-b029-4411-b64f-ae857241a1aa","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":478,"box":{"x":170,"y":867,"width":292,"height":9}},{"id":"00b82545-182e-41bb-8353-57a595dcdad3","block_type":"box","text":"13","page_number":478,"box":{"x":144,"y":880,"width":8,"height":5}},{"id":"bb1cde64-ac3b-4b28-b4c8-03168b1e73d5","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":478,"box":{"x":171,"y":880,"width":678,"height":9}},{"id":"a6d64f15-4b74-4adc-b36c-165e3712eef5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":478,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"b8dcf5c6-663e-4d39-8590-ddf5bdf822d1","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":478,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"a7adf511-ac42-429f-9e06-2811926d51c3","block_type":"box","text":"19","page_number":478,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"cd6d4cf3-151e-4ddd-9dbd-4beb749d3227","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":478,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0da0ed40-1eec-4a0f-af08-bf9a628b6101","block_type":"box","text":"vote deadline. Both BAIS and the vote services provider actively monitor securities filings, research","page_number":479,"box":{"x":116,"y":87,"width":741,"height":12}},{"id":"0c3b9201-0cda-4518-a2b9-5914d928cca2","block_type":"box","text":"reports, company announcements, and direct communications from companies to ensure awareness","page_number":479,"box":{"x":117,"y":102,"width":753,"height":13}},{"id":"d69cfd79-1cec-4521-9fe1-50fbc9acc1c9","block_type":"box","text":"of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":479,"box":{"x":116,"y":118,"width":667,"height":12}},{"id":"4f6b6dfb-b9dd-40da-bc77-d2f3b0b419ef","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are","page_number":479,"box":{"x":117,"y":149,"width":751,"height":12}},{"id":"36fd70d9-0a83-4642-95e6-2fc821f2a373","block_type":"box","text":"meeting our service level expectations and have effective policies and procedures in place to manage","page_number":479,"box":{"x":117,"y":165,"width":759,"height":12}},{"id":"d315b87a-5bdb-4f21-bdba-22a7e0682f16","block_type":"box","text":"potential conflicts of interest. Our oversight of service providers includes regular meetings with client","page_number":479,"box":{"x":117,"y":180,"width":747,"height":12}},{"id":"68293821-9745-4562-9aeb-119fccfff1a3","block_type":"box","text":"service teams, systematic monitoring of vendor operations, as well as annual due diligence meetings in","page_number":479,"box":{"x":116,"y":196,"width":771,"height":12}},{"id":"a7cbeecf-2ab6-4d12-8ea4-24993160a5a3","block_type":"box","text":"accordance with BlackRock’s firmwide policies.","page_number":479,"box":{"x":116,"y":211,"width":355,"height":12}},{"id":"c93c68c0-bf82-476b-9922-296f877bf545","block_type":"box","text":"Conflicts management policies and procedures","page_number":479,"box":{"x":116,"y":242,"width":383,"height":12}},{"id":"23c112b7-338a-4dc9-87fa-bb8e7275b6ca","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy","page_number":479,"box":{"x":117,"y":273,"width":734,"height":12}},{"id":"1b0e2ec9-f973-4a49-b34b-784a73e7a82b","block_type":"box","text":"voting activity. Such influence might stem from any relationship between the investee company (or any","page_number":479,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"0ea05f65-0f25-41c0-9466-fe223ea30e92","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a","page_number":479,"box":{"x":116,"y":304,"width":743,"height":12}},{"id":"d624d10e-8a97-41a3-8d31-18749eb41ad6","block_type":"box","text":"Fund’s affiliates, or BlackRock employees. 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BlackRock may also use an independent third-party voting service provider to","page_number":480,"box":{"x":184,"y":196,"width":701,"height":12}},{"id":"3134a91f-7033-4320-902b-a034d270470e","block_type":"box","text":"make proxy voting recommendations for certain perceived or potential conflicts of interest,","page_number":480,"box":{"x":184,"y":211,"width":673,"height":12}},{"id":"483b44d9-e321-41d1-913c-07663d0b14f2","block_type":"box","text":"including:","page_number":480,"box":{"x":184,"y":227,"width":75,"height":12}},{"id":"49b14c28-6ef2-4ca7-9aee-c2b5160b9c53","block_type":"box","text":"• public companies that include BlackRock employees on their boards of directors","page_number":480,"box":{"x":226,"y":250,"width":625,"height":12}},{"id":"d863d2a5-2e95-4633-aa0a-5065b7dfa821","block_type":"box","text":"• public companies of which a BlackRock, Inc. board member serves as a senior","page_number":480,"box":{"x":226,"y":273,"width":616,"height":12}},{"id":"df1d0b42-0049-4c05-885f-2cdd8f330fc3","block_type":"box","text":"executive or a member of the board of directors","page_number":480,"box":{"x":251,"y":289,"width":358,"height":9}},{"id":"3d422413-8851-4c5a-a1c8-d66986be2f75","block_type":"box","text":"• public companies that are the subject of certain transactions involving BlackRock","page_number":480,"box":{"x":226,"y":312,"width":631,"height":12}},{"id":"6b49e85e-c6a3-41c3-8e17-250e85920f73","block_type":"box","text":"Funds","page_number":480,"box":{"x":252,"y":327,"width":50,"height":10}},{"id":"1ebd050e-d1b4-44ae-8f7a-bb4543783be9","block_type":"box","text":"• public companies that are joint venture partners with BlackRock, and","page_number":480,"box":{"x":226,"y":351,"width":540,"height":12}},{"id":"8f09e24f-6236-4de8-9445-69b857a6eceb","block_type":"box","text":"• public companies when legal or regulatory requirements compel BlackRock to use","page_number":480,"box":{"x":226,"y":374,"width":640,"height":12}},{"id":"bc466201-69e2-45d5-9305-6917f4b6de5c","block_type":"box","text":"an independent third-party voting service provider","page_number":480,"box":{"x":251,"y":389,"width":374,"height":12}},{"id":"4b43732b-2a83-4e76-8c4e-888077335e17","block_type":"box","text":"In selecting an independent third-party voting service provider, we assess several characteristics,","page_number":480,"box":{"x":117,"y":420,"width":727,"height":12}},{"id":"e0b118be-e640-4b63-ac2d-dde97be4290c","block_type":"box","text":"including but not limited to: independence, an ability to analyze proxy issues and make","page_number":480,"box":{"x":117,"y":436,"width":647,"height":12}},{"id":"196a0631-1e92-4628-bf9b-76ce6c97af43","block_type":"box","text":"recommendations in the economic interest of our clients in accordance with the Guidelines, reputation","page_number":480,"box":{"x":117,"y":451,"width":760,"height":12}},{"id":"29b2c5cf-7e5a-4f25-b5fe-6f04d9e32df9","block_type":"box","text":"for reliability and integrity, and operational capacity to accurately deliver the assigned","page_number":480,"box":{"x":116,"y":467,"width":637,"height":12}},{"id":"9be6c858-270c-4195-a7b8-9b3cc7f5b441","block_type":"box","text":"recommendations in a timely manner. 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Potential material conflicts, and the resultant potential for","page_number":483,"box":{"x":116,"y":770,"width":724,"height":13}},{"id":"13385b84-776c-4a05-ab77-f079f85eedf1","block_type":"box","text":"undue influence, might be due to a relationship between the investee company (or any shareholder","page_number":483,"box":{"x":117,"y":786,"width":735,"height":12}},{"id":"5c3e9020-d827-48ae-9fa0-b4711e4597a9","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates or employees, or a Fund or","page_number":483,"box":{"x":117,"y":801,"width":756,"height":13}},{"id":"37895b30-df65-4666-94c7-46c08ffaae5d","block_type":"box","text":"a Fund’s affiliates. BlackRock has taken certain steps to mitigate potential conflicts, which are outlined","page_number":483,"box":{"x":116,"y":817,"width":757,"height":12}},{"id":"bb5d7f1e-d3f0-4bb0-be36-e39b0b775a84","block_type":"box","text":"in detail in the Guidelines. 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The Guidelines set forth BlackRock’s approach to","page_number":484,"box":{"x":117,"y":211,"width":733,"height":12}},{"id":"b7ac2820-9b41-4058-9556-ffe1dc552458","block_type":"box","text":"recalling securities on loan in connection with proxy voting.","page_number":484,"box":{"x":117,"y":227,"width":440,"height":12}},{"id":"b37d352c-2389-4e5e-9ee9-fc0d0f5320fa","block_type":"box","text":"Reports to the Board","page_number":484,"box":{"x":117,"y":258,"width":171,"height":11}},{"id":"0f17cace-5e3a-42da-adbf-0e6c214057b6","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process","page_number":484,"box":{"x":117,"y":281,"width":767,"height":12}},{"id":"e97e066c-dd24-480e-9560-f8d60752ddea","block_type":"box","text":"as applicable to the Funds covered by this policy in the preceding year together with a 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Our stewardship program – including when engaging with companies and","page_number":489,"box":{"x":116,"y":180,"width":749,"height":12}},{"id":"6a213653-74e3-478f-8142-3dad758fd4d6","block_type":"box","text":"voting at shareholder meetings on behalf of clients – is conducted from a long-term investor","page_number":489,"box":{"x":116,"y":196,"width":685,"height":12}},{"id":"15be36ea-d8f7-40f8-a580-89698fed2c80","block_type":"box","text":"perspective and takes a financial materiality-based approach, focused solely on advancing clients’","page_number":489,"box":{"x":117,"y":211,"width":732,"height":12}},{"id":"6e30b34c-5098-44ee-9a42-24a448dd76e5","block_type":"box","text":"long-term financial interests.","page_number":489,"box":{"x":117,"y":227,"width":214,"height":12}},{"id":"406eaf8f-97f5-4bec-bf56-565e24bf6cc9","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen","page_number":489,"box":{"x":117,"y":258,"width":753,"height":12}},{"id":"124b7f8b-ac3a-4579-ba4c-ffc63b1ef900","block_type":"box","text":"our understanding of a company’s business model, including how they are overseeing material","page_number":489,"box":{"x":116,"y":273,"width":708,"height":12}},{"id":"e448f0ae-57a7-496a-9b13-dcbd84a89c8d","block_type":"box","text":"business risks and opportunities over time, and to help inform our voting on behalf of clients.","page_number":489,"box":{"x":117,"y":289,"width":689,"height":12}},{"id":"07512348-5c96-4fda-ace8-48fa727c446f","block_type":"box","text":"Engagements provide companies with the opportunity to share their perspectives on topics that, in BIS’","page_number":489,"box":{"x":117,"y":304,"width":769,"height":12}},{"id":"6641adde-b31f-4e4c-975d-5f4a6dc6c129","block_type":"box","text":"experience, impact the long-term financial returns BlackRock’s clients depend on to meet their financial","page_number":489,"box":{"x":116,"y":320,"width":771,"height":12}},{"id":"39486cff-9b35-4419-86db-03e65a940f53","block_type":"box","text":"goals.","page_number":489,"box":{"x":116,"y":335,"width":49,"height":12}},{"id":"161726fc-c996-4e49-8fac-f9ef853906c9","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":489,"box":{"x":116,"y":366,"width":713,"height":12}},{"id":"1fb63aa8-6aa3-4f63-984f-64fb343ef3ec","block_type":"box","text":"corporate governance. As a fiduciary, BlackRock is legally required to make proxy voting","page_number":489,"box":{"x":116,"y":382,"width":663,"height":12}},{"id":"7a0a4e48-b8f7-4ba7-9c7a-c5ef452e57ff","block_type":"box","text":"determinations in a manner that is consistent with the investment objectives of clients who have","page_number":489,"box":{"x":116,"y":397,"width":715,"height":12}},{"id":"758c04de-82dc-493c-a235-cf555ea11e69","block_type":"box","text":"delegated voting authority to us. BIS’ Benchmark Policies, and the vote decisions made consistent with","page_number":489,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"e12f1baf-91b3-4536-b289-2518ea3c924d","block_type":"box","text":"those policies, reflect our reasonable and independent judgment of what is in the long-term financial","page_number":489,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"61894449-a606-4fc5-a8e0-a326c367f73c","block_type":"box","text":"interests of clients. Our vote decisions are often informed by several factors, including in-depth","page_number":489,"box":{"x":117,"y":444,"width":706,"height":12}},{"id":"af9beb10-cb84-4e25-9d04-55abeb627e88","block_type":"box","text":"analysis of company disclosures, comparisons against industry peers, third-party research, and, where","page_number":489,"box":{"x":116,"y":459,"width":768,"height":12}},{"id":"9ad7afab-75ef-4237-9851-1a5086b32972","block_type":"box","text":"appropriate, engagement with companies.","page_number":489,"box":{"x":116,"y":475,"width":318,"height":12}},{"id":"3edb1baf-4d36-4483-b094-bc90031f6121","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at","page_number":489,"box":{"x":117,"y":506,"width":721,"height":12}},{"id":"67f6ba02-11b1-4126-a123-69181cc53882","block_type":"box","text":"companies which have sound corporate governance and deliver strong financial returns over time.","page_number":489,"box":{"x":116,"y":521,"width":734,"height":12}},{"id":"5c668453-4c02-4ea3-b3e1-2484dcde747a","block_type":"box","text":"When we determine it is in our clients’ financial interests to convey concern to companies through","page_number":489,"box":{"x":116,"y":537,"width":729,"height":12}},{"id":"7fb07b75-a955-45d5-a1d7-89f4c2f56722","block_type":"box","text":"voting, we may do so in two forms: we might not support the election of directors or other management","page_number":489,"box":{"x":116,"y":552,"width":768,"height":12}},{"id":"23faa889-bf31-4d01-ab97-be627770962e","block_type":"box","text":"proposals, or we might not support management’s voting recommendation on a shareholder proposal.","page_number":489,"box":{"x":117,"y":568,"width":761,"height":12}},{"id":"b075775c-5437-4202-aa55-2fd44a1a48b7","block_type":"box","text":"Shareholder rights","page_number":489,"box":{"x":425,"y":606,"width":154,"height":12}},{"id":"67c9559c-777c-4e46-90df-614dc43edfb9","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights","page_number":489,"box":{"x":117,"y":637,"width":762,"height":12}},{"id":"8195f6b4-3d25-4245-bf2b-865b01b3084f","block_type":"box","text":"attached to shareholding in most markets, as established by corporate laws, regulations, and listing","page_number":489,"box":{"x":116,"y":653,"width":743,"height":12}},{"id":"a343365f-a1d7-4a00-a7b3-dcbe25dd99ba","block_type":"box","text":"rules.","page_number":489,"box":{"x":117,"y":669,"width":38,"height":9}},{"id":"5aa6f7a6-d7b1-4c27-afe9-3cb13b5ac6ee","block_type":"box","text":"3","page_number":489,"box":{"x":157,"y":669,"width":5,"height":6}},{"id":"1f85478d-9b87-4f06-868e-38f08182aded","block_type":"box","text":"For example, in most markets, shareholders have the right to:","page_number":489,"box":{"x":169,"y":669,"width":456,"height":11}},{"id":"cd04cd5e-902c-47c7-8897-e9a78d90854b","block_type":"box","text":"• Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and","page_number":489,"box":{"x":159,"y":699,"width":699,"height":12}},{"id":"3523d964-c403-42ee-a8ef-0468043c2c26","block_type":"box","text":"amend the corporate charter or bylaws.","page_number":489,"box":{"x":184,"y":715,"width":291,"height":12}},{"id":"7320f496-cdd2-46ae-a149-c6e3f577490b","block_type":"box","text":"• Vote on key board decisions that are material to the protection of their investment, including","page_number":489,"box":{"x":159,"y":738,"width":704,"height":12}},{"id":"fffc288f-ba27-4fa0-8c7f-2fa2fab41493","block_type":"box","text":"but not limited to, changes to the purpose of the business, dilution levels, and pre-emptive","page_number":489,"box":{"x":184,"y":754,"width":667,"height":12}},{"id":"3910295c-8a90-4800-9127-9973ffe91c30","block_type":"box","text":"rights.","page_number":489,"box":{"x":184,"y":769,"width":43,"height":12}},{"id":"d527175b-b881-4e9e-b563-bc6720d9d9ea","block_type":"box","text":"• Access sufficient and timely information on governance, strategic, and business matters –","page_number":489,"box":{"x":159,"y":792,"width":691,"height":13}},{"id":"f1a3d2e7-85b2-4539-bdff-44030465af3e","block_type":"box","text":"where such matters are material – to make informed decisions.","page_number":489,"box":{"x":183,"y":808,"width":468,"height":9}},{"id":"9dad29cf-c099-4086-847c-1b3cd4dbc154","block_type":"box","text":"3","page_number":489,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"b5be3697-7af0-400f-8865-0996d92f27c0","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":489,"box":{"x":171,"y":854,"width":682,"height":9}},{"id":"94fb3eae-646a-434b-9472-f0325937caa0","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":489,"box":{"x":170,"y":867,"width":651,"height":9}},{"id":"16457611-af87-4b39-8f67-e38993f58f28","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":489,"box":{"x":170,"y":880,"width":538,"height":9}},{"id":"581f7c20-1c3f-4a1c-b923-f21edf3f757f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":489,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"1e0528c2-6bab-4da9-951e-127c2028d62f","block_type":"box","text":"Global Principles |","page_number":489,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"a44410d9-2163-4348-8474-aac88ae87de9","block_type":"box","text":"4","page_number":489,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"34813615-9c45-436b-b2cf-9f0d68dec585","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":489,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a47a61d3-9073-490e-a9cc-b4f52e9480a5","block_type":"box","text":"Key governance topics","page_number":490,"box":{"x":409,"y":87,"width":187,"height":12}},{"id":"eb319d0e-ad74-43eb-93e8-6223b0917915","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that","page_number":490,"box":{"x":117,"y":118,"width":700,"height":12}},{"id":"38fce69f-b646-4300-9dec-148f15f4a272","block_type":"box","text":"contribute to a company’s ability to create long-term financial value for shareholders. These are topics","page_number":490,"box":{"x":116,"y":134,"width":761,"height":12}},{"id":"40a54235-85fd-4f1c-8648-4bf1b4065cbb","block_type":"box","text":"that shareholders may have the ability to vote on at shareholder meetings. These areas include:","page_number":490,"box":{"x":116,"y":149,"width":717,"height":12}},{"id":"9c73d020-f6bd-45e2-a7ff-347fa9743d53","block_type":"box","text":"• Boards and directors","page_number":490,"box":{"x":117,"y":180,"width":192,"height":10}},{"id":"88840b1e-4441-44b4-9bfb-d02dd53f942a","block_type":"box","text":"• Auditors and audit-related issues","page_number":490,"box":{"x":117,"y":203,"width":282,"height":10}},{"id":"4400d9a1-da53-4177-bd54-d8716bfd7b2b","block_type":"box","text":"• Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":490,"box":{"x":117,"y":227,"width":635,"height":12}},{"id":"267195a1-944c-46fa-9abe-d0ce8ee70cac","block_type":"box","text":"• Executive compensation","page_number":490,"box":{"x":117,"y":250,"width":219,"height":12}},{"id":"3fe1e923-c451-4e18-94cd-b63514c80199","block_type":"box","text":"• Shareholder protections and other significant corporate governance matters","page_number":490,"box":{"x":117,"y":273,"width":600,"height":12}},{"id":"9202785c-1594-4466-9eb6-a04345bce4e0","block_type":"box","text":"• Shareholder proposals","page_number":490,"box":{"x":117,"y":296,"width":206,"height":12}},{"id":"cf9ae1d3-2df2-43fb-96eb-697c03f4e0d7","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking","page_number":490,"box":{"x":116,"y":327,"width":744,"height":12}},{"id":"7118b77f-963f-47f6-9fbc-abe7ab9d94fd","block_type":"box","text":"into consideration a number of company-specific factors, including the sector, market, and business","page_number":490,"box":{"x":117,"y":343,"width":744,"height":12}},{"id":"15320b0f-e6cd-4f10-9466-3df7a841aa93","block_type":"box","text":"environment within which companies operate.","page_number":490,"box":{"x":116,"y":358,"width":345,"height":12}},{"id":"69b3e7f1-61bc-4959-b456-fc0afc57c029","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance","page_number":490,"box":{"x":116,"y":389,"width":761,"height":12}},{"id":"a7fd4e2c-a0d1-481d-bd48-7190ba35da44","block_type":"box","text":"standards in their domestic market at a minimum, and we ask that, if they do not, they explain how","page_number":490,"box":{"x":116,"y":405,"width":736,"height":12}},{"id":"9ce402d1-361c-4280-9194-8619df7bac01","block_type":"box","text":"their approach better supports durable, long-term financial value creation. Our regional voting","page_number":490,"box":{"x":116,"y":420,"width":698,"height":12}},{"id":"436b0834-c30b-4b49-a613-53c9ff6fefa7","block_type":"box","text":"guidelines explain how the BIS Global Principles inform our voting decisions in relation to common","page_number":490,"box":{"x":116,"y":436,"width":735,"height":12}},{"id":"cbe38e5f-f47f-4169-992a-de35d1ba98b7","block_type":"box","text":"ballot items for shareholder meetings in those markets.","page_number":490,"box":{"x":117,"y":451,"width":406,"height":12}},{"id":"9a82d492-bc78-4c2f-886d-633e0fc00785","block_type":"box","text":"4","page_number":490,"box":{"x":525,"y":451,"width":5,"height":7}},{"id":"d6988d31-076f-4dff-8823-236363578aa0","block_type":"box","text":"Boards and directors","page_number":490,"box":{"x":416,"y":490,"width":173,"height":10}},{"id":"a99f5757-6d22-4325-995f-285fd18ffd4f","block_type":"box","text":"Oversight role of the board","page_number":490,"box":{"x":116,"y":521,"width":221,"height":12}},{"id":"48c242b2-229f-4e64-a286-dd4482f41845","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with","page_number":490,"box":{"x":117,"y":552,"width":676,"height":12}},{"id":"a2d39415-d1ff-4a7a-95b0-d4adac09ac88","block_type":"box","text":"professional characteristics relevant to a company’s business enhance the board’s ability to add long","page_number":490,"box":{"x":117,"y":568,"width":753,"height":12}},{"id":"7eb713b8-3bc0-4957-892d-af97d577d8a7","block_type":"box","text":"term financial value and serve as the voice of shareholders in board discussions. In our view, a strong","page_number":490,"box":{"x":116,"y":583,"width":761,"height":12}},{"id":"5fdac08b-f56c-4c9b-a766-e86f5fb6b7a1","block_type":"box","text":"board gives a company a competitive advantage, providing valuable oversight and contributing to the","page_number":490,"box":{"x":117,"y":599,"width":754,"height":12}},{"id":"f5e32ad6-f136-4795-b7b9-7513c2bbef1f","block_type":"box","text":"most important management decisions that support long-term financial performance.","page_number":490,"box":{"x":117,"y":614,"width":632,"height":12}},{"id":"e70eb346-8518-43df-b8c0-da8cb6e0610e","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors.","page_number":490,"box":{"x":117,"y":645,"width":768,"height":12}},{"id":"8a48b4d6-95cb-43ac-8f4d-057b01224005","block_type":"box","text":"We engage, as necessary, with members of the board’s nominating and/or governance committee to","page_number":490,"box":{"x":116,"y":661,"width":748,"height":12}},{"id":"917af921-b124-4924-ad54-16fd9b7af61f","block_type":"box","text":"assess whether governance practices and board composition are effective given a company’s","page_number":490,"box":{"x":116,"y":676,"width":696,"height":12}},{"id":"5f162274-f16b-4182-8f4b-b76f5833678d","block_type":"box","text":"business model, sector, market, and the business environment in which a company is operating.","page_number":490,"box":{"x":117,"y":692,"width":713,"height":12}},{"id":"c2958c56-94fd-4461-aac2-3468fa959cf9","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and","page_number":490,"box":{"x":116,"y":723,"width":730,"height":12}},{"id":"9fb4fe8e-9493-441c-89c4-2e4778fd10b0","block_type":"box","text":"effective governance mechanisms that supports its oversight of the company’s strategy and","page_number":490,"box":{"x":116,"y":738,"width":679,"height":12}},{"id":"1e984975-c1be-401e-8d81-beedbc222c96","block_type":"box","text":"operations, consistent with the long-term financial interests of investors. This includes having clear","page_number":490,"box":{"x":116,"y":754,"width":731,"height":12}},{"id":"6af54199-00a9-4887-aeff-ae3b37fd6c0e","block_type":"box","text":"descriptions of the role of the board and the committees of the board and how directors engage with","page_number":490,"box":{"x":116,"y":769,"width":742,"height":12}},{"id":"b1e82d7c-b1a8-46b0-b27a-9e27dce58e2f","block_type":"box","text":"and oversee management, as well as disclosure of material risks that may affect a company’s long","page_number":490,"box":{"x":116,"y":785,"width":738,"height":12}},{"id":"f07efa82-fc35-408a-8926-38aaea9e2743","block_type":"box","text":"term strategy and how management is effectively identifying, managing, and mitigating such risks.","page_number":490,"box":{"x":116,"y":800,"width":726,"height":12}},{"id":"186a4df1-a08f-47d6-8222-17d5229dbd3c","block_type":"box","text":"4","page_number":490,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"42cc8ad3-5380-4010-99f0-736727ef2683","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market, generally","page_number":490,"box":{"x":170,"y":841,"width":702,"height":9}},{"id":"c1e4fa37-e165-47d4-b4b1-3f473a7ddcb0","block_type":"box","text":"accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives, amongst other","page_number":490,"box":{"x":170,"y":854,"width":712,"height":9}},{"id":"4c4a4862-b779-47a4-a1e9-a6897fad2b01","block_type":"box","text":"factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote operations (including","page_number":490,"box":{"x":170,"y":867,"width":688,"height":9}},{"id":"a611c7fa-bede-4cca-915e-ccd9536d0edc","block_type":"box","text":"maintaining records of votes cast) in a manner consistent with the relevant regional voting guidelines.","page_number":490,"box":{"x":170,"y":880,"width":600,"height":9}},{"id":"d233ae89-f52b-4c7c-8ec4-93e672a8087e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":490,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"f36986bc-0175-47d7-927b-555b150224d2","block_type":"box","text":"Global Principles |","page_number":490,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"84a6d733-0d85-4087-9076-7af9a566feca","block_type":"box","text":"5","page_number":490,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"5c33d0bb-78af-4135-8a47-c2a99a549368","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":490,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"47e6513d-8f8a-4a4d-8226-4fa74bec4c53","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should","page_number":491,"box":{"x":117,"y":87,"width":747,"height":12}},{"id":"74bda0e6-fa65-4508-bafb-8c9a3a24f103","block_type":"box","text":"assess its implementation is central to our approach. If any strategic targets are significantly missed or","page_number":491,"box":{"x":116,"y":102,"width":765,"height":13}},{"id":"702bfd56-cba7-4c42-9ca1-d46a060f0220","block_type":"box","text":"materially restated, we find it helpful when company disclosures provide a detailed explanation of the","page_number":491,"box":{"x":117,"y":118,"width":753,"height":12}},{"id":"8cdbe309-cfa0-45fc-a65f-7a30b1d83d17","block_type":"box","text":"changes and an indication of the board’s role in reviewing the revised targets. We look to the board to","page_number":491,"box":{"x":116,"y":134,"width":759,"height":12}},{"id":"1eeaabd7-0382-489e-946e-6c703ccf48d8","block_type":"box","text":"articulate the effectiveness of these mechanisms in overseeing the management of business risks and","page_number":491,"box":{"x":116,"y":149,"width":765,"height":12}},{"id":"0e7b3409-c094-4d82-af11-bb117c53919b","block_type":"box","text":"opportunities and the fulfillment of the company’s strategy.","page_number":491,"box":{"x":116,"y":165,"width":439,"height":12}},{"id":"a09b579b-1035-4926-ae9e-84964410badb","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these","page_number":491,"box":{"x":116,"y":196,"width":727,"height":12}},{"id":"63872041-db76-417e-810e-cdf4f59cc03b","block_type":"box","text":"corporate governance and risk oversight responsibilities, we may consider not supporting the election","page_number":491,"box":{"x":116,"y":211,"width":757,"height":12}},{"id":"a9e71f6e-53fb-4196-a375-c6849eed88fa","block_type":"box","text":"of directors who, in our assessment, have particular responsibility for the issues.","page_number":491,"box":{"x":116,"y":227,"width":601,"height":12}},{"id":"6e74e9dd-a42e-47c8-9c79-103546de0e8c","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that","page_number":491,"box":{"x":116,"y":258,"width":750,"height":12}},{"id":"d5aae977-e5d9-4823-aa61-f97c6b6bf49a","block_type":"box","text":"speak to the board’s effectiveness as a group include the relevance of individual directors’","page_number":491,"box":{"x":116,"y":273,"width":673,"height":12}},{"id":"5f3d2b17-2e66-4b63-aa97-f44928118683","block_type":"box","text":"qualifications and skillsets, as well as directors’ capacity and other time commitments, and how these","page_number":491,"box":{"x":116,"y":289,"width":757,"height":12}},{"id":"cbcc5199-1efb-4787-98b6-8e21f9bca3ab","block_type":"box","text":"factors may contribute to the company’s financial performance. We look to boards to establish formal","page_number":491,"box":{"x":116,"y":304,"width":754,"height":12}},{"id":"e8c32937-40fe-4e73-8bae-5436265e33f2","block_type":"box","text":"and transparent processes for nominating directors that reflect the company’s long-term strategy and","page_number":491,"box":{"x":116,"y":320,"width":754,"height":12}},{"id":"e10a2b2b-2501-4018-8d13-713757fd2ad8","block_type":"box","text":"business model.","page_number":491,"box":{"x":117,"y":335,"width":125,"height":10}},{"id":"0863c487-5c42-4a16-a870-ddb99327e11f","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our","page_number":491,"box":{"x":117,"y":366,"width":697,"height":12}},{"id":"3dcb4e94-d80d-44b7-8ccc-e840a5ef96e0","block_type":"box","text":"approach to board composition and how it underpins board effectiveness and long-term financial value","page_number":491,"box":{"x":116,"y":382,"width":766,"height":12}},{"id":"c94b9b8f-4811-4c6f-905f-4498e9177d09","block_type":"box","text":"creation.","page_number":491,"box":{"x":116,"y":397,"width":69,"height":10}},{"id":"b17f31c2-fb50-4af8-ac7a-3c5e358df9c7","block_type":"box","text":"Regular accountability through director elections","page_number":491,"box":{"x":116,"y":428,"width":398,"height":12}},{"id":"530c172e-6983-4c32-947e-0ba0350e60dd","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for,","page_number":491,"box":{"x":116,"y":459,"width":756,"height":12}},{"id":"bfe6a96b-9e4b-4d9d-8cf9-62f14fd255fd","block_type":"box","text":"or concern about, the performance of the board in overseeing and advising management. To ensure","page_number":491,"box":{"x":116,"y":475,"width":749,"height":12}},{"id":"7d9bceb2-23f0-4ba2-89c7-bc9812be76f8","block_type":"box","text":"accountability for their decisions on behalf of shareholders, directors should stand for election on a","page_number":491,"box":{"x":116,"y":490,"width":736,"height":12}},{"id":"5dd5c086-6ad3-4c17-90c0-fadbccd2ba5d","block_type":"box","text":"regular basis, ideally annually.","page_number":491,"box":{"x":117,"y":506,"width":223,"height":12}},{"id":"8b56d43e-80c5-496d-82dc-751bf85da0ec","block_type":"box","text":"5","page_number":491,"box":{"x":341,"y":506,"width":6,"height":6}},{"id":"8899e0d5-f766-47e8-a07e-7ca4bf7ae973","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support","page_number":491,"box":{"x":347,"y":506,"width":517,"height":12}},{"id":"9c4a4773-cdb6-4391-b7ec-c8c948d82d68","block_type":"box","text":"for, or concerns about, board members’ decisions in a timely manner. When board members are not","page_number":491,"box":{"x":116,"y":521,"width":749,"height":12}},{"id":"22937964-1a1b-4b37-8ed6-f06437643518","block_type":"box","text":"elected annually, we consider it good practice for boards to have a rotation policy to ensure that,","page_number":491,"box":{"x":116,"y":537,"width":719,"height":12}},{"id":"9f69fafa-dce5-41fd-8332-53216fda81a6","block_type":"box","text":"through a board cycle, all directors have had their appointment re-confirmed, with a proportion of","page_number":491,"box":{"x":116,"y":552,"width":722,"height":12}},{"id":"5c2f1195-b344-47ad-9199-31f62383a66e","block_type":"box","text":"directors being put forward for election at each shareholder meeting.","page_number":491,"box":{"x":116,"y":568,"width":513,"height":12}},{"id":"04b67bb8-a91a-4bdf-a41b-95e6137d48c9","block_type":"box","text":"Board quality and effectiveness","page_number":491,"box":{"x":116,"y":599,"width":258,"height":12}},{"id":"2543d7b8-e8cf-49f3-b36a-28044f68c896","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way","page_number":491,"box":{"x":117,"y":630,"width":770,"height":12}},{"id":"29763dcc-49a1-4f2f-bdb1-348836fb946e","block_type":"box","text":"to reflect developments in the company’s strategy and the market environment. In our view, it is","page_number":491,"box":{"x":116,"y":645,"width":714,"height":12}},{"id":"82053409-4961-48c4-b869-4c5a556a2c0d","block_type":"box","text":"beneficial for new directors to be brought onto the board periodically to refresh the group’s thinking,","page_number":491,"box":{"x":117,"y":661,"width":735,"height":12}},{"id":"fe8a7871-8295-4fc2-9024-abe14f576e86","block_type":"box","text":"while supporting both continuity and appropriate succession planning. We consider the average overall","page_number":491,"box":{"x":116,"y":676,"width":763,"height":12}},{"id":"99faef95-bcde-4497-90a4-822c77711d48","block_type":"box","text":"tenure of the board and seek a balance between the knowledge and experience of longer-serving","page_number":491,"box":{"x":116,"y":692,"width":723,"height":12}},{"id":"bd21671e-032f-4df2-9505-af8fd63d7bb2","block_type":"box","text":"directors and the fresh perspectives of directors who joined more recently.","page_number":491,"box":{"x":116,"y":707,"width":549,"height":12}},{"id":"977f361f-b6b5-4d96-bdf2-7d9d7386d29b","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election","page_number":491,"box":{"x":116,"y":738,"width":725,"height":12}},{"id":"83c26f62-e349-4aeb-9fdc-e93a9dd0a7e0","block_type":"box","text":"contribute to the effectiveness of the board. In our view, the company’s assessment should consider a","page_number":491,"box":{"x":116,"y":754,"width":757,"height":12}},{"id":"acdbce66-47de-40bc-8fe1-4f4aa3e57edf","block_type":"box","text":"number of factors, including each director’s independence and time commitments, as well as the","page_number":491,"box":{"x":117,"y":769,"width":715,"height":12}},{"id":"69ccb678-f11e-4e73-8aa4-bc2be7d83fa7","block_type":"box","text":"breadth and relevance of director experiences and skillsets, and how these collectively contribute to","page_number":491,"box":{"x":117,"y":785,"width":739,"height":12}},{"id":"79a5de99-d232-4b72-aede-9597e6d5e8aa","block_type":"box","text":"the board’s effectiveness in advising and overseeing management in delivering long-term financial","page_number":491,"box":{"x":116,"y":800,"width":728,"height":12}},{"id":"415428c6-89eb-460f-a485-5d60e38851da","block_type":"box","text":"returns.","page_number":491,"box":{"x":117,"y":816,"width":54,"height":9}},{"id":"188ea2d3-cfe1-4ba3-91e5-45f8ab3cbc7b","block_type":"box","text":"5","page_number":491,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"7bb09a14-9332-4dea-a3c5-33031239931b","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law, market","page_number":491,"box":{"x":171,"y":867,"width":703,"height":9}},{"id":"401ec8c0-ed26-4210-afff-30810cfa82c8","block_type":"box","text":"regulation or voluntary best practice.","page_number":491,"box":{"x":170,"y":880,"width":215,"height":9}},{"id":"750d1290-008a-47be-93ac-24274f76571c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":491,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"47754d92-e4f0-49d1-b59c-c5ccc3d4d726","block_type":"box","text":"Global Principles |","page_number":491,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"8e9c060b-9663-4c6d-b487-fedc2e1871e8","block_type":"box","text":"6","page_number":491,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"914bd966-5824-499d-9579-ae577237db46","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":491,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3363427a-feb9-47a5-aea4-aea737ed4ed6","block_type":"box","text":"Director independence","page_number":492,"box":{"x":116,"y":87,"width":187,"height":12}},{"id":"68e0122f-f904-419e-99d1-2658bb0123f9","block_type":"box","text":"Director independence – from management, significant shareholders, or other related parties – is a","page_number":492,"box":{"x":117,"y":117,"width":738,"height":12}},{"id":"192b844b-5b54-428d-9893-e40b88b45e25","block_type":"box","text":"central tenet of sound corporate governance across markets.","page_number":492,"box":{"x":116,"y":132,"width":452,"height":12}},{"id":"1da4f384-91fe-4a45-bef5-b220a4d6dde6","block_type":"box","text":"6","page_number":492,"box":{"x":570,"y":132,"width":5,"height":6}},{"id":"fcec538c-bc4f-40e2-a667-93d9dbba618d","block_type":"box","text":"We look to boards to have a sufficient","page_number":492,"box":{"x":576,"y":132,"width":290,"height":10}},{"id":"cc185f71-8894-4db0-ae9f-7fed647c54d9","block_type":"box","text":"number of independent directors, free from conflicts of interest or undue influence, to ensure objectivity","page_number":492,"box":{"x":117,"y":148,"width":768,"height":12}},{"id":"d64b410f-b361-4524-80c9-c0d73229edf9","block_type":"box","text":"in the decision-making of the board and its ability to oversee management. We generally consider it","page_number":492,"box":{"x":117,"y":163,"width":742,"height":12}},{"id":"8ae472f7-7f25-47c1-a9cc-85b09c324eb4","block_type":"box","text":"good practice for independent directors to make a majority of the board, or in the case of controlled","page_number":492,"box":{"x":116,"y":179,"width":740,"height":12}},{"id":"7c6e65b6-2b08-441d-94e2-2d6b361b4f8f","block_type":"box","text":"companies, at least one-third.","page_number":492,"box":{"x":116,"y":194,"width":225,"height":12}},{"id":"1fc12328-3a39-402f-a02d-2803c54eecd8","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":492,"box":{"x":117,"y":224,"width":557,"height":12}},{"id":"51a4db57-4e66-4cc8-9ae3-f052f26d9606","block_type":"box","text":"• Current or recent employment at the company or a subsidiary","page_number":492,"box":{"x":117,"y":254,"width":495,"height":12}},{"id":"0d10cba3-0ce1-488e-ae55-105d7e4c480c","block_type":"box","text":"• Being, or representing, a shareholder with a substantial shareholding in the company","page_number":492,"box":{"x":117,"y":276,"width":668,"height":12}},{"id":"490e0eba-cd24-47f8-a24a-fef1c332091d","block_type":"box","text":"• Interlocking directorates","page_number":492,"box":{"x":117,"y":299,"width":216,"height":12}},{"id":"0a718b03-25eb-4c4d-b970-a083da111156","block_type":"box","text":"• Having any other interest, business, or other relationship which could, or could reasonably be","page_number":492,"box":{"x":117,"y":322,"width":730,"height":12}},{"id":"d8e19110-215e-45fb-8f09-b7e7fc29a095","block_type":"box","text":"perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":492,"box":{"x":150,"y":337,"width":729,"height":12}},{"id":"4284c6db-40af-4197-b178-2a2f52582262","block_type":"box","text":"and shareholders","page_number":492,"box":{"x":150,"y":353,"width":134,"height":9}},{"id":"6624c9dc-b7cb-462a-bac4-91413926632a","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a","page_number":492,"box":{"x":117,"y":382,"width":759,"height":12}},{"id":"e19d2e10-18fb-4c11-bfde-178c655d249d","block_type":"box","text":"senior, independent board leader. This director may chair the board, or, where the chair is also the","page_number":492,"box":{"x":116,"y":398,"width":736,"height":12}},{"id":"9bcb630d-a6f1-4820-84b6-4d25f2cf45fc","block_type":"box","text":"CEO (or is otherwise not independent), be designated as a lead independent director. The role of this","page_number":492,"box":{"x":117,"y":413,"width":757,"height":12}},{"id":"62ffae02-aa82-4195-bda4-6cbd6f6310da","block_type":"box","text":"director is to support independent board members in fulfilling their oversight responsibilities effectively","page_number":492,"box":{"x":116,"y":429,"width":760,"height":12}},{"id":"7391f8a4-b20f-441a-9c0e-d0db0da39dd2","block_type":"box","text":"by shaping the agenda, ensuring adequate information is provided to the board, and encouraging","page_number":492,"box":{"x":117,"y":444,"width":726,"height":12}},{"id":"fce8249f-abce-47dd-b28b-38be0428c921","block_type":"box","text":"independent director participation in board deliberations. We appreciate when the lead independent","page_number":492,"box":{"x":117,"y":460,"width":742,"height":12}},{"id":"8344b2f9-077f-4dcb-962d-de5fcb2ae4fd","block_type":"box","text":"director or another appropriate director is available to meet with shareholders to explain and","page_number":492,"box":{"x":116,"y":475,"width":687,"height":12}},{"id":"1d522532-98f1-4d74-b7b3-fce110c89161","block_type":"box","text":"contextualize a company’s approach as a situation warrants.","page_number":492,"box":{"x":116,"y":491,"width":454,"height":12}},{"id":"f4919db6-b32d-490f-9c6c-17e6020a7112","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or","page_number":492,"box":{"x":117,"y":520,"width":759,"height":13}},{"id":"94dfaa9c-c621-4889-b686-c15b5945c87c","block_type":"box","text":"that require additional focus. It is our view that objective oversight of such matters is best achieved","page_number":492,"box":{"x":116,"y":536,"width":736,"height":12}},{"id":"297b536d-4ead-4fc6-a2c8-c40c3c097b44","block_type":"box","text":"when the board forms committees with a majority of independent directors, depending on market","page_number":492,"box":{"x":116,"y":551,"width":723,"height":13}},{"id":"f5ec777e-7c6b-4d21-b5ff-592175be4a17","block_type":"box","text":"norms and a company’s ownership structure. In many markets, these committees of the board","page_number":492,"box":{"x":117,"y":567,"width":704,"height":12}},{"id":"daa48b9e-2830-4fbe-aeea-a1549b234f77","block_type":"box","text":"specialize in audit, director nominations, and compensation matters, among others. An ad hoc","page_number":492,"box":{"x":116,"y":583,"width":703,"height":12}},{"id":"bca1be27-4436-4290-b2b3-901bfee181dd","block_type":"box","text":"committee might also be formed to decide on a special transaction, particularly one involving a related","page_number":492,"box":{"x":116,"y":598,"width":762,"height":12}},{"id":"0dbe3661-8c36-472f-a871-34ae648e4a99","block_type":"box","text":"party, or to investigate a significant adverse event.","page_number":492,"box":{"x":117,"y":613,"width":378,"height":13}},{"id":"d70a0b93-b8c3-48e3-a14e-d7a618bb6ce3","block_type":"box","text":"Sufficient capacity","page_number":492,"box":{"x":117,"y":643,"width":152,"height":12}},{"id":"6cde3b35-4f13-4bcb-97aa-c819a03f62c2","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to","page_number":492,"box":{"x":116,"y":673,"width":709,"height":12}},{"id":"aa26ed44-d844-43a3-9563-fe17f0f6fea5","block_type":"box","text":"commit an appropriate amount of time to board and committee matters. It is important that directors","page_number":492,"box":{"x":116,"y":688,"width":738,"height":12}},{"id":"12f8fe02-356b-4bc2-b572-d895fd6173ca","block_type":"box","text":"have the capacity to meet all of their responsibilities – including when there are unforeseen events –","page_number":492,"box":{"x":117,"y":704,"width":743,"height":12}},{"id":"17bf0bb2-d973-4ddd-b939-98e6328ad42c","block_type":"box","text":"and therefore, we consider it best practice when they don’t take on an excessive number of roles that","page_number":492,"box":{"x":116,"y":719,"width":751,"height":13}},{"id":"e4da171d-cc8e-4218-8e58-200b69b50f1c","block_type":"box","text":"would impair their ability to fulfill their duties.","page_number":492,"box":{"x":116,"y":735,"width":326,"height":12}},{"id":"75006745-0c94-46f6-b33c-ba68bd1c01ef","block_type":"box","text":"Board composition","page_number":492,"box":{"x":116,"y":765,"width":153,"height":12}},{"id":"e4fa7646-798f-44cd-818d-03a1e3075f2e","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model,","page_number":492,"box":{"x":117,"y":795,"width":708,"height":11}},{"id":"687c868c-0333-42e2-8345-7a8976aeb013","block_type":"box","text":"strategy, market capitalization, and ownership structure, as well as the market in which the company","page_number":492,"box":{"x":116,"y":810,"width":745,"height":12}},{"id":"8b09269c-73ce-4b4d-b2fc-c071ea3efd65","block_type":"box","text":"operates. We find it helpful when companies explain how their approach to board composition supports","page_number":492,"box":{"x":116,"y":825,"width":771,"height":12}},{"id":"c44c4a4c-cd65-4c13-95c3-3484d606a4f4","block_type":"box","text":"the company’s governance practices.","page_number":492,"box":{"x":116,"y":841,"width":282,"height":12}},{"id":"7ffd0f73-6c5d-4a6a-acf6-151c63edce4f","block_type":"box","text":"6","page_number":492,"box":{"x":143,"y":866,"width":4,"height":5}},{"id":"d8449c9f-c823-49f0-99ff-e2808193dde2","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":492,"box":{"x":171,"y":866,"width":683,"height":10}},{"id":"9ba88e16-bc02-4d0e-850b-1d98c29c9e27","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":492,"box":{"x":171,"y":879,"width":587,"height":10}},{"id":"763092ca-ab8a-43dc-811c-6f604c0644bc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":492,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"3d63e619-027a-4965-bc50-373ae8cffc23","block_type":"box","text":"Global Principles |","page_number":492,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"da25c907-a67b-404e-9cb0-b58e876e1cfa","block_type":"box","text":"7","page_number":492,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"5336c68b-621f-498c-9135-2e89a3a648fe","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":492,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0d349b55-03eb-4e5f-97e2-15a48facea00","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the","page_number":493,"box":{"x":116,"y":87,"width":760,"height":12}},{"id":"6e9b6374-1148-4bd4-a74d-b3aa8345834b","block_type":"box","text":"individual candidates so that shareholders can assess the capabilities and suitability of each individual","page_number":493,"box":{"x":117,"y":102,"width":763,"height":13}},{"id":"ede08b1f-0259-4ade-90da-edc4bf0501f8","block_type":"box","text":"nominee and their fit within overall board composition. These disclosures should explain how the","page_number":493,"box":{"x":117,"y":118,"width":721,"height":12}},{"id":"2fb8d50d-4cdb-4981-8da8-e1f89c6d1845","block_type":"box","text":"collective experience and expertise of the board, as well as the particular skillsets of individual","page_number":493,"box":{"x":116,"y":134,"width":703,"height":11}},{"id":"c60e802f-1c70-40f7-980c-347515383bee","block_type":"box","text":"directors, aligns with the company’s long-term strategy. Highly qualified, engaged directors with","page_number":493,"box":{"x":116,"y":149,"width":713,"height":12}},{"id":"354d2b35-6ed9-40db-b5d3-c6fd258122f8","block_type":"box","text":"professional characteristics relevant to a company’s business and strategy enhance the ability of the","page_number":493,"box":{"x":117,"y":165,"width":749,"height":12}},{"id":"3bb995b6-42d7-499c-8e31-31487170f106","block_type":"box","text":"board to add value and be the voice of shareholders in board discussions.","page_number":493,"box":{"x":117,"y":180,"width":554,"height":10}},{"id":"0efdc2c9-94cd-4839-baa5-305b74f3ba83","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the","page_number":493,"box":{"x":117,"y":212,"width":755,"height":12}},{"id":"0a3e1146-3117-42de-ac01-d2e8b062ff0b","block_type":"box","text":"board room. We see it as a means of avoiding “group think” in the board’s exercise of its","page_number":493,"box":{"x":117,"y":228,"width":659,"height":12}},{"id":"547ced36-6866-4473-842b-bc919935c6de","block_type":"box","text":"responsibilities to advise and oversee management. We note that in many markets, policymakers have","page_number":493,"box":{"x":117,"y":244,"width":768,"height":11}},{"id":"935d162f-fbf9-4d48-8616-8313f2dd0bed","block_type":"box","text":"set board gender diversity goals which we may discuss with companies, particularly if there is a risk","page_number":493,"box":{"x":116,"y":259,"width":743,"height":12}},{"id":"5adb3629-6968-4f57-b4a7-87bc9901a502","block_type":"box","text":"their board composition may be misaligned.","page_number":493,"box":{"x":116,"y":275,"width":329,"height":12}},{"id":"3a1c7ff3-3269-4218-b03d-707c2846596d","block_type":"box","text":"Auditors and audit-related issues","page_number":493,"box":{"x":366,"y":315,"width":272,"height":10}},{"id":"4bddbbdc-3320-4eae-ab37-5bf4d98ae9b5","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate","page_number":493,"box":{"x":117,"y":348,"width":725,"height":12}},{"id":"c9e093cd-e1f8-49e3-b1a5-c74286ddef1f","block_type":"box","text":"portrayal of a company’s financial condition. Accordingly, we look for the assumptions made by","page_number":493,"box":{"x":117,"y":363,"width":709,"height":12}},{"id":"b22db406-657e-4761-a181-3413bba14692","block_type":"box","text":"management, and reviewed by the auditor in preparing the financial statements, to be reasonable and","page_number":493,"box":{"x":117,"y":379,"width":760,"height":12}},{"id":"27ae99d9-6095-44e9-b05a-f029ad69c5cf","block_type":"box","text":"justified.","page_number":493,"box":{"x":115,"y":394,"width":67,"height":12}},{"id":"e784f9f3-789f-40b1-88e4-10c20461307b","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":493,"box":{"x":116,"y":426,"width":754,"height":13}},{"id":"f3aa5819-a0b1-4e58-a193-085ccc72b675","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important","page_number":493,"box":{"x":117,"y":442,"width":746,"height":12}},{"id":"97597f50-e7a7-4b2a-8df2-72f31b359f05","block_type":"box","text":"role in a company’s financial reporting system by providing independent oversight of the accounts,","page_number":493,"box":{"x":117,"y":457,"width":733,"height":13}},{"id":"4ce991ae-b72d-4a8b-bc1c-a6c7e309929e","block_type":"box","text":"material financial, and, where appropriate to the jurisdiction, non-financial information and internal","page_number":493,"box":{"x":117,"y":473,"width":728,"height":12}},{"id":"cc58fbda-9072-463c-8762-9eb0e0ce827f","block_type":"box","text":"control frameworks. Moreover, in the absence of a dedicated risk committee, these committees can","page_number":493,"box":{"x":116,"y":488,"width":743,"height":12}},{"id":"375aaa95-6064-43c1-b04e-35eda2e21b8b","block_type":"box","text":"provide oversight of Enterprise Risk Management systems.","page_number":493,"box":{"x":117,"y":504,"width":437,"height":12}},{"id":"b9b36073-80c9-4e1f-8bc6-01002871fcd1","block_type":"box","text":"7","page_number":493,"box":{"x":556,"y":504,"width":5,"height":6}},{"id":"63b3b103-ced5-4efc-a60a-9d51f3c574d4","block_type":"box","text":"In our view, effective audit committee","page_number":493,"box":{"x":562,"y":504,"width":286,"height":11}},{"id":"5f2116c6-fa7c-46e8-afc4-dd858204e4f3","block_type":"box","text":"oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":493,"box":{"x":116,"y":519,"width":745,"height":13}},{"id":"bb6f610d-07d0-4f04-8d91-41d757c67456","block_type":"box","text":"important level of reassurance to shareholders.","page_number":493,"box":{"x":117,"y":535,"width":354,"height":12}},{"id":"9f9bb912-0901-4515-9923-e62ad4e6da79","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":493,"box":{"x":116,"y":567,"width":750,"height":12}},{"id":"e9ac5860-a772-40ed-a2ac-19c76cffb737","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership","page_number":493,"box":{"x":117,"y":583,"width":765,"height":12}},{"id":"85ab4afa-7792-4a93-a1a9-c15839115c0b","block_type":"box","text":"and introduce new perspectives. We recognize that audit committees will rely on management, internal","page_number":493,"box":{"x":116,"y":598,"width":769,"height":12}},{"id":"c8541a6e-ae6d-458e-a82d-6e9e2b699424","block_type":"box","text":"audit, and the independent auditor to fulfill their responsibilities. However, we look to committee","page_number":493,"box":{"x":116,"y":614,"width":712,"height":12}},{"id":"4c24beac-4b76-4bef-8a42-5890e9b5f8c7","block_type":"box","text":"members to demonstrate they have relevant expertise to monitor and oversee the audit process and","page_number":493,"box":{"x":117,"y":629,"width":749,"height":12}},{"id":"3e675f22-155a-4e03-88b1-73e75a9db0ea","block_type":"box","text":"related activities.","page_number":493,"box":{"x":117,"y":645,"width":129,"height":9}},{"id":"b556ee9c-a58f-4e12-8843-5edb9b198da6","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant","page_number":493,"box":{"x":116,"y":677,"width":748,"height":12}},{"id":"fc3f817d-ef61-4b91-bdcf-0982852259cc","block_type":"box","text":"financial restatements, or ad hoc notifications of material financial weakness. In this respect, we look to","page_number":493,"box":{"x":116,"y":693,"width":765,"height":12}},{"id":"24a55a85-5d2d-4d4a-8ece-08ea0eefa593","block_type":"box","text":"audit committees to provide timely disclosure on the remediation of key and critical audit matters","page_number":493,"box":{"x":116,"y":708,"width":715,"height":12}},{"id":"5db6a71e-3138-4763-884e-86ea68af30cf","block_type":"box","text":"identified either by the external auditor or internal audit function.","page_number":493,"box":{"x":117,"y":724,"width":472,"height":12}},{"id":"8155d573-f61f-464a-b360-8bc31775c322","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":493,"box":{"x":116,"y":756,"width":748,"height":12}},{"id":"deea71ad-49a4-4968-a152-ee8290a6f6fb","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that","page_number":493,"box":{"x":116,"y":772,"width":750,"height":12}},{"id":"7994c220-8f7d-4eff-bfd1-d98e4464491e","block_type":"box","text":"auditors are, and are seen to be, independent. Where an audit firm provides services to the company","page_number":493,"box":{"x":116,"y":787,"width":751,"height":12}},{"id":"b02693ee-ed61-447d-a372-52bd6f65ebf1","block_type":"box","text":"in addition to the audit, we look for the fees","page_number":493,"box":{"x":117,"y":803,"width":318,"height":11}},{"id":"f7ddb5a3-661d-4075-89dd-8a23d1ddd93b","block_type":"box","text":"earned to be disclosed and explained. We look for audit","page_number":493,"box":{"x":441,"y":803,"width":414,"height":12}},{"id":"73c3edd5-b67a-4517-b00f-c284e48319b1","block_type":"box","text":"7","page_number":493,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"d8b9edac-898c-4647-a120-a303f3d159d9","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":493,"box":{"x":171,"y":828,"width":648,"height":9}},{"id":"c6c1d174-5eb4-47c7-a09c-37686b4b4ee0","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the","page_number":493,"box":{"x":170,"y":841,"width":709,"height":9}},{"id":"a8dc13d0-b8ea-45d2-a589-641d377b545f","block_type":"box","text":"entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement of","page_number":493,"box":{"x":170,"y":854,"width":690,"height":9}},{"id":"6bfe7b05-bea5-43ac-91a1-2292c715ecb8","block_type":"box","text":"objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO), “Enterprise","page_number":493,"box":{"x":170,"y":866,"width":710,"height":10}},{"id":"092ebd2c-14b2-44b6-b6e3-4f452080170f","block_type":"box","text":"Risk Management,” 2023, accessed in December 2025.","page_number":493,"box":{"x":171,"y":879,"width":329,"height":10}},{"id":"d85bf3ef-8f72-40a1-9140-a40710484d85","block_type":"box","text":"BlackRock Investment Stewardship","page_number":493,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"8f8daf69-e96e-4f9b-8319-ef02429da31d","block_type":"box","text":"Global Principles |","page_number":493,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"666588cb-46ab-48bf-9ce1-079c19ebf0ef","block_type":"box","text":"8","page_number":493,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"7a028e73-0833-439d-9bd6-37c8ed38372b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":493,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c5fb3e64-c144-4fc6-b0e9-cc83379083a4","block_type":"box","text":"committees to have in place a procedure for assessing the independence of the auditor and the quality","page_number":494,"box":{"x":116,"y":87,"width":767,"height":12}},{"id":"4541c362-f517-40fd-844d-a59872a945ac","block_type":"box","text":"of the external audit process on an annual basis.","page_number":494,"box":{"x":116,"y":102,"width":366,"height":12}},{"id":"fb0565b5-5d48-46e4-8815-04410a7c2220","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term","page_number":494,"box":{"x":117,"y":134,"width":719,"height":12}},{"id":"54b619f0-9b9b-4518-88cc-eb02d5ee285f","block_type":"box","text":"operational risk management practices and, more broadly, the quality of the board’s oversight. We look","page_number":494,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"7ff1c634-b51f-49e2-9bac-efc017e98aa3","block_type":"box","text":"to the audit or risk committee to periodically review the company’s risk assessment and risk","page_number":494,"box":{"x":116,"y":165,"width":684,"height":12}},{"id":"62dbd584-b78c-4aa1-b07f-e5d692af4217","block_type":"box","text":"management policies and the significant risks and exposures identified by management, the internal","page_number":494,"box":{"x":117,"y":180,"width":747,"height":12}},{"id":"3016beab-31bc-4009-ac3b-773b6f1bd32b","block_type":"box","text":"auditors or the independent auditors, and management’s steps to address them. In the absence of","page_number":494,"box":{"x":116,"y":196,"width":735,"height":12}},{"id":"8263a43d-a88f-460b-94b9-ee42c8a18c4f","block_type":"box","text":"detailed disclosures, we may conclude that companies are not adequately managing risk.","page_number":494,"box":{"x":116,"y":211,"width":668,"height":12}},{"id":"792416e9-bd2b-4485-9fde-b6411b773801","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":494,"box":{"x":176,"y":250,"width":652,"height":12}},{"id":"ee582e92-09a0-4dee-91e8-1800c5da76d4","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment","page_number":494,"box":{"x":116,"y":281,"width":766,"height":12}},{"id":"409c7831-93e4-443f-9325-6bed7be8407f","block_type":"box","text":"and the priority of their interest in the company relative to that of other equity or debt investors.","page_number":494,"box":{"x":116,"y":296,"width":707,"height":12}},{"id":"8ae20242-b5b7-4897-a772-edef5f259943","block_type":"box","text":"Pre-emptive rights are a key protection for shareholders against the dilution of their interests.","page_number":494,"box":{"x":117,"y":312,"width":693,"height":12}},{"id":"bba42766-78d5-461f-8bc5-bafe9b44e141","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure","page_number":494,"box":{"x":117,"y":343,"width":746,"height":12}},{"id":"e3d6f7cd-fab3-47ba-b6dd-986bab3cb901","block_type":"box","text":"and differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce","page_number":494,"box":{"x":116,"y":358,"width":754,"height":12}},{"id":"f024f4fb-4337-40ee-9d97-fdf19e304d5c","block_type":"box","text":"the adoption of “one share, one vote” for registered shareholders.","page_number":494,"box":{"x":116,"y":374,"width":491,"height":12}},{"id":"70dbd95e-7427-4066-9725-78aa1250220c","block_type":"box","text":"However, we recognize that in certain markets, at","page_number":494,"box":{"x":117,"y":405,"width":364,"height":12}},{"id":"ed69459e-27c2-4aef-a729-56a02bc562da","block_type":"box","text":"least for a period of time, companies may have a valid","page_number":494,"box":{"x":482,"y":405,"width":397,"height":12}},{"id":"8e9d5ae7-018c-45ec-9f55-cd12f9166aee","block_type":"box","text":"reason for listing dual classes of shares with different","page_number":494,"box":{"x":117,"y":420,"width":384,"height":12}},{"id":"4c656fe7-5f10-4d44-bdc1-2c286a6be520","block_type":"box","text":"iated voting rights. In our view, such companies","page_number":494,"box":{"x":502,"y":420,"width":350,"height":12}},{"id":"9ecad568-f413-46cd-8edb-0ef810048802","block_type":"box","text":"should review these share class structures on a r","page_number":494,"box":{"x":116,"y":436,"width":357,"height":9}},{"id":"892d73f0-d869-471e-a8f0-0f74fa0631e1","block_type":"box","text":"egular basis or as company circumstances change.","page_number":494,"box":{"x":473,"y":436,"width":379,"height":12}},{"id":"79e00f24-0494-428c-a970-c1b0a9d85c9a","block_type":"box","text":"Additionally, they should seek shareholder approval of","page_number":494,"box":{"x":116,"y":451,"width":394,"height":12}},{"id":"ae447cb1-b711-4aa4-949d-bfbdf14e1d93","block_type":"box","text":"f their capital structure on a periodic basis via a","page_number":494,"box":{"x":510,"y":451,"width":342,"height":12}},{"id":"82a0338e-156c-41bd-bb0f-56829379d232","block_type":"box","text":"management proposal at the company’s shareholder","page_number":494,"box":{"x":117,"y":467,"width":388,"height":12}},{"id":"3ccc30ab-39b9-4ff7-9104-39094589cb0d","block_type":"box","text":"meeting. The proposal should give unaffiliated","page_number":494,"box":{"x":506,"y":467,"width":339,"height":12}},{"id":"c2bb8b63-66c3-4187-af00-cac4649fd396","block_type":"box","text":"shareholders the opportunity to affirm the current stru","page_number":494,"box":{"x":116,"y":482,"width":387,"height":12}},{"id":"a6c2bf16-a236-4988-989d-9a44fb932434","block_type":"box","text":"cture or establish mechanisms to end or phase out","page_number":494,"box":{"x":504,"y":482,"width":373,"height":12}},{"id":"43d2b3fd-452d-446f-a7c6-137a5924e7b1","block_type":"box","text":"controlling structures at the appropriate ti","page_number":494,"box":{"x":116,"y":498,"width":297,"height":12}},{"id":"330b00fc-d134-4fa4-b1f1-8641412d621b","block_type":"box","text":"me, while minimizing costs to shareholders.","page_number":494,"box":{"x":414,"y":498,"width":322,"height":12}},{"id":"55e0e058-3211-40df-83f0-a880f17474c1","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long","page_number":494,"box":{"x":117,"y":529,"width":745,"height":12}},{"id":"7bef43b1-211a-4f4b-8dc5-c3025cd51d6e","block_type":"box","text":"term financial interests of our clients as shareholders, and so we will review any proposed transaction","page_number":494,"box":{"x":116,"y":544,"width":758,"height":12}},{"id":"bae995b1-e5a8-4cbe-b853-51688c9e4d08","block_type":"box","text":"with that objective in mind. Typically, we review factors such as whether the proposed transaction has","page_number":494,"box":{"x":116,"y":560,"width":760,"height":12}},{"id":"00a107d5-fd7e-4efd-ab0d-33233c7529af","block_type":"box","text":"the unanimous support of the board and has been negotiated at arm’s length, and whether the board","page_number":494,"box":{"x":116,"y":575,"width":753,"height":12}},{"id":"639eec17-b54b-40a0-82db-8104ccdcd3b4","block_type":"box","text":"or management has clearly explained its economic and strategic rationale. We may also seek","page_number":494,"box":{"x":116,"y":591,"width":699,"height":12}},{"id":"caf84227-9682-4a87-bce7-41f58376de54","block_type":"box","text":"reassurance from the board that the financial interests of executives and/or board members in a given","page_number":494,"box":{"x":117,"y":606,"width":761,"height":12}},{"id":"8bdab2d8-859b-481a-98fd-f5ff080b9874","block_type":"box","text":"transaction have not adversely affected their ability to place shareholders’ interests before their own.","page_number":494,"box":{"x":116,"y":622,"width":750,"height":12}},{"id":"4419821b-0c16-4a0b-b4b3-34d557725bd6","block_type":"box","text":"Where the transaction involves related parties, the recommendation to support should come from the","page_number":494,"box":{"x":116,"y":637,"width":755,"height":12}},{"id":"3aed1d97-3734-4324-9601-40a890954419","block_type":"box","text":"independent directors, a best practice in most markets, and ideally, the terms should have been","page_number":494,"box":{"x":117,"y":653,"width":715,"height":12}},{"id":"bce83fbb-64c5-4489-a966-16b46f2696b0","block_type":"box","text":"assessed through an independent appraisal process. In addition, it is good practice that it be approved","page_number":494,"box":{"x":116,"y":669,"width":760,"height":11}},{"id":"9cbc4c85-7895-428c-b168-8300c6c72111","block_type":"box","text":"by a separate vote of the non-conflicted parties.","page_number":494,"box":{"x":117,"y":684,"width":352,"height":12}},{"id":"f11d7659-4661-4138-8ff7-c93cfd7b5412","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company","page_number":494,"box":{"x":116,"y":715,"width":738,"height":12}},{"id":"fdb0f5d9-47a9-4d5f-bd8e-c8c877c1f68d","block_type":"box","text":"shares in the open market without unnecessary restriction. In our view, corporate mechanisms","page_number":494,"box":{"x":116,"y":731,"width":700,"height":12}},{"id":"d45eaa4c-0d38-4983-b405-cc0cb3f9813a","block_type":"box","text":"designed to limit shareholders’ ability to sell their shares are contrary to basic property rights. Such","page_number":494,"box":{"x":116,"y":746,"width":732,"height":12}},{"id":"3b4ffd8f-dd2b-4bdb-847e-d5a98b107d33","block_type":"box","text":"mechanisms can serve to protect and entrench interests other than those of the shareholders. In our","page_number":494,"box":{"x":117,"y":761,"width":745,"height":12}},{"id":"796ae958-7ecc-42ba-9b13-4f54f777f18c","block_type":"box","text":"view, shareholders are broadly capable of making decisions in their own best interests. We encourage","page_number":494,"box":{"x":116,"y":777,"width":759,"height":12}},{"id":"5717857a-44e9-43ff-8c33-4c6bb721a625","block_type":"box","text":"any shareholder rights plans proposed by a board to be subject to shareholder approval upon","page_number":494,"box":{"x":116,"y":793,"width":693,"height":12}},{"id":"2021d5f5-5afa-4381-9804-437c38b2244c","block_type":"box","text":"introduction and periodically thereafter.","page_number":494,"box":{"x":117,"y":808,"width":287,"height":12}},{"id":"3c6bc70e-f755-4020-8708-11526663655a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":494,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"9823857c-28dc-41a7-9798-b5ee58d7efe4","block_type":"box","text":"Global Principles |","page_number":494,"box":{"x":735,"y":909,"width":133,"height":12}},{"id":"47525f6b-d629-45e0-abbf-d8e9b51c7769","block_type":"box","text":"9","page_number":494,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"fa8a7605-8017-400a-bfb7-94fd39650872","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":494,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"56956023-51af-42a6-93b8-c585c5daedbe","block_type":"box","text":"Executive compensation and benefits","page_number":495,"box":{"x":350,"y":87,"width":305,"height":12}},{"id":"c1f8849e-c28e-401f-b8e9-dc100e8671db","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value","page_number":495,"box":{"x":117,"y":118,"width":749,"height":12}},{"id":"eb27311e-23f3-406e-b50f-6cda85190ebc","block_type":"box","text":"creation. A well-structured compensation policy rewards the successful delivery of strategic,","page_number":495,"box":{"x":116,"y":134,"width":686,"height":12}},{"id":"0e122dc9-599d-4815-94f3-e7794bda7da9","block_type":"box","text":"operational, and/or financial goals; encourages an appropriate risk appetite; and aligns the interests of","page_number":495,"box":{"x":116,"y":149,"width":763,"height":12}},{"id":"219c2b2f-57d2-4be2-a341-094634fc0f5c","block_type":"box","text":"shareholders and executives through equity ownership.","page_number":495,"box":{"x":116,"y":165,"width":410,"height":12}},{"id":"f21c1e02-2c40-4c51-aabe-731365b5457d","block_type":"box","text":"8","page_number":495,"box":{"x":528,"y":165,"width":5,"height":6}},{"id":"90e18151-7238-42df-8662-314e11ab54ff","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support","page_number":495,"box":{"x":116,"y":196,"width":751,"height":12}},{"id":"a173ad95-2049-436e-9950-c612b57e5553","block_type":"box","text":"sustained financial value creation for our clients as shareholders. We appreciate when performance","page_number":495,"box":{"x":116,"y":211,"width":744,"height":12}},{"id":"0a3764a1-ef71-4e64-b03d-b33d6404f270","block_type":"box","text":"targets incorporate ambitious objectives, and the corresponding metrics are aligned with the","page_number":495,"box":{"x":116,"y":227,"width":687,"height":12}},{"id":"efc63cf6-871a-409c-a2df-7d1ed1e0b89c","block_type":"box","text":"company’s strategy and business model. BIS does not have a position on whether companies choose","page_number":495,"box":{"x":116,"y":242,"width":760,"height":12}},{"id":"cbaa84bb-6b67-4de0-b67c-be192ecc6d1f","block_type":"box","text":"to use sustainability-related criteria in compensation structures, but, where they are included, we look","page_number":495,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"0130b131-a368-4e93-b270-fb6583899a65","block_type":"box","text":"to companies to be as rigorous as they would be in setting other financial or operational targets. We","page_number":495,"box":{"x":116,"y":273,"width":745,"height":12}},{"id":"36aa496d-aca8-40bf-9e54-0dce0873c908","block_type":"box","text":"appreciate when long-term incentive plans encompass timeframes that: 1) are distinct from annual","page_number":495,"box":{"x":116,"y":289,"width":735,"height":12}},{"id":"4d9d43e6-1111-4283-9435-d55c2e026c40","block_type":"box","text":"executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":495,"box":{"x":116,"y":304,"width":724,"height":12}},{"id":"050f68ad-bfde-4627-ba5e-8f042e7f97f0","block_type":"box","text":"results over a period of years.","page_number":495,"box":{"x":117,"y":320,"width":225,"height":12}},{"id":"d9161e1b-7f6d-403e-adc0-1a75c861c763","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":495,"box":{"x":116,"y":351,"width":757,"height":12}},{"id":"c7a08ead-f6b1-49a0-929d-0353f8e8145d","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may","page_number":495,"box":{"x":116,"y":366,"width":720,"height":12}},{"id":"7227d620-94b7-464b-ba83-b010529daff6","block_type":"box","text":"include the company’s risk profile, the environment it operates in, and the individuals the board is trying","page_number":495,"box":{"x":117,"y":382,"width":770,"height":12}},{"id":"3299bfe9-08ac-4b75-b069-a4b054425537","block_type":"box","text":"to attract and retain. We look to the compensation committees to guard against contractual","page_number":495,"box":{"x":116,"y":397,"width":679,"height":12}},{"id":"69b35d7d-3db9-45a9-b7d3-108caa6b32ee","block_type":"box","text":"arrangements that would entitle executives to material compensation for early termination of their","page_number":495,"box":{"x":116,"y":413,"width":726,"height":12}},{"id":"ebd0a806-6ee4-4cda-ac59-a07ec3b712eb","block_type":"box","text":"employment. Finally, we look for pension contributions and other deferred compensation arrangements","page_number":495,"box":{"x":116,"y":428,"width":770,"height":12}},{"id":"9ee6bac2-32c8-489a-89f3-70c77508964a","block_type":"box","text":"to be reasonable in light of market practices or the company’s business and executive compensation","page_number":495,"box":{"x":116,"y":444,"width":752,"height":12}},{"id":"5ac5fbb3-0d0b-47b0-b965-157ac6fc01b2","block_type":"box","text":"strategies.","page_number":495,"box":{"x":116,"y":459,"width":82,"height":12}},{"id":"639b1d8c-422a-45f5-8108-f11fac24bb83","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance.","page_number":495,"box":{"x":116,"y":490,"width":755,"height":12}},{"id":"9493a27a-7a01-4578-8d33-690bbe26d619","block_type":"box","text":"Where discretion has been used by the compensation committee, or its equivalent, we appreciate","page_number":495,"box":{"x":116,"y":506,"width":730,"height":12}},{"id":"49fb9c9a-0a9e-4e23-8e54-c0c955df8b0e","block_type":"box","text":"disclosure relating to how and why the discretion was used, and how the adjusted outcome is aligned","page_number":495,"box":{"x":116,"y":521,"width":757,"height":12}},{"id":"bebb4f41-d4fa-4ea0-95b5-d247cf2c6c08","block_type":"box","text":"with the interests of shareholders. In addition, we acknowledge that the use of peer group evaluation","page_number":495,"box":{"x":116,"y":537,"width":751,"height":12}},{"id":"f149a1a4-6ff4-4abe-954b-cfeced33fbe3","block_type":"box","text":"by compensation committees can help ensure competitive pay. However, we encourage companies to","page_number":495,"box":{"x":117,"y":552,"width":763,"height":12}},{"id":"248705cc-9868-4cfe-9a0a-b5ac173e959e","block_type":"box","text":"clearly explain how compensation outcomes have rewarded performance rather than solely base","page_number":495,"box":{"x":116,"y":568,"width":724,"height":12}},{"id":"f6ff24e6-8c23-4b8d-ad2d-ec8ec460ece6","block_type":"box","text":"increases in total compensation on peer benchmarking.","page_number":495,"box":{"x":117,"y":583,"width":416,"height":12}},{"id":"7b15aecf-ebfe-415f-9e94-4e817f057191","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such","page_number":495,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"5b513f31-a27b-474d-814f-a478152ab683","block_type":"box","text":"provisions could require executives to forgo awards when compensation was based on faulty financial","page_number":495,"box":{"x":117,"y":630,"width":760,"height":12}},{"id":"bc351a43-498a-43cb-a342-e6dea321cdbc","block_type":"box","text":"statements or deceptive business practices, or when their behavior caused material financial harm to","page_number":495,"box":{"x":116,"y":645,"width":754,"height":12}},{"id":"e28e9663-7b01-415a-968f-b43696e5f205","block_type":"box","text":"shareholders, material reputational risk to the company, or resulted in a criminal investigation.","page_number":495,"box":{"x":116,"y":661,"width":694,"height":12}},{"id":"c68a2f58-4533-49a5-a8c6-9cb86e13ce13","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with","page_number":495,"box":{"x":117,"y":692,"width":740,"height":12}},{"id":"db0627f2-431a-4bbe-8313-feb4aee60cb9","block_type":"box","text":"the time and effort expended in fulfilling their professional responsibilities. Additionally, these","page_number":495,"box":{"x":116,"y":707,"width":686,"height":12}},{"id":"9154cb59-dd52-4845-b102-b7b4875f9535","block_type":"box","text":"compensation arrangements should not risk compromising directors’ independence or aligning their","page_number":495,"box":{"x":116,"y":723,"width":739,"height":12}},{"id":"12412051-4659-410c-b89c-39ce32c6345a","block_type":"box","text":"interests too closely with those of the management, whom they are charged with overseeing.","page_number":495,"box":{"x":117,"y":738,"width":687,"height":12}},{"id":"39bee300-0491-4d86-8014-9c1c38c9e59b","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether","page_number":495,"box":{"x":116,"y":769,"width":750,"height":12}},{"id":"c579e05d-157b-4f54-8f13-f708899e7a3a","block_type":"box","text":"the board’s approach to executive compensation is rigorous in light of the company’s stated long-term","page_number":495,"box":{"x":116,"y":785,"width":755,"height":12}},{"id":"e02fceaf-3a18-4a57-983d-8b3c7e567da1","block_type":"box","text":"corporate strategy and specific circumstances, as well as local market and policy developments.","page_number":495,"box":{"x":116,"y":800,"width":713,"height":12}},{"id":"f1ffe12e-8b26-46cd-b7b7-15648cb0efe0","block_type":"box","text":"8","page_number":495,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"186f7677-53bb-485d-a862-b7440aad57f6","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":495,"box":{"x":170,"y":867,"width":664,"height":9}},{"id":"e723efe9-b7d0-4d18-8a05-ba7e8f00d7ad","block_type":"box","text":"different markets.","page_number":495,"box":{"x":170,"y":880,"width":102,"height":7}},{"id":"894b41db-87f7-4ffa-8ded-baad42695b8e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":495,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"6c5d27cb-8cb6-4299-bb1a-75e5c5bcab26","block_type":"box","text":"Global Principles |","page_number":495,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"4cb10baa-4fc2-463b-8858-6eb496d98545","block_type":"box","text":"10","page_number":495,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"70fb1786-0c94-42f1-96b0-9e61e11110d2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":495,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0f96f52b-d120-4edd-8bbc-364b96617441","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance,","page_number":496,"box":{"x":116,"y":87,"width":745,"height":12}},{"id":"81388cb3-c882-4975-b503-ad1f9e30f1b5","block_type":"box","text":"BIS may not support management’s proposals to approve compensation, where they are on the","page_number":496,"box":{"x":117,"y":102,"width":715,"height":13}},{"id":"0c27be03-918e-4e74-abdf-7004b050c023","block_type":"box","text":"agenda. We may also not support members of the compensation committee or equivalent board","page_number":496,"box":{"x":116,"y":118,"width":719,"height":12}},{"id":"50e62311-2093-4364-b5b2-487ccef58e56","block_type":"box","text":"members for poor compensation practices or structures.","page_number":496,"box":{"x":117,"y":134,"width":421,"height":11}},{"id":"7c1b5c21-7ed0-49b4-9c15-557e63f73663","block_type":"box","text":"Shareholder protections and other corporate governance matters","page_number":496,"box":{"x":239,"y":172,"width":527,"height":12}},{"id":"f0e001f6-de7c-4e5b-bc55-ff78b012bc3b","block_type":"box","text":"Corporate form","page_number":496,"box":{"x":116,"y":203,"width":127,"height":12}},{"id":"a6abbff5-c6ee-4032-8f30-d9dc10d3301d","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate","page_number":496,"box":{"x":117,"y":234,"width":766,"height":12}},{"id":"87b2f891-5352-43dd-a9c4-f947abf630dd","block_type":"box","text":"given the company’s purpose and business model.","page_number":496,"box":{"x":116,"y":250,"width":376,"height":12}},{"id":"6dc7cabd-9af3-4d4f-a3a9-c6b899a68588","block_type":"box","text":"9","page_number":496,"box":{"x":494,"y":250,"width":5,"height":6}},{"id":"16a8f2d9-6522-45a3-b56c-02e8bfc36cbc","block_type":"box","text":"We look to companies proposing to change their","page_number":496,"box":{"x":500,"y":250,"width":369,"height":12}},{"id":"5da29e68-862a-40a3-9f4d-f0565f62f4e5","block_type":"box","text":"corporate form to a public benefit corporation, or similar entity, to put it to a shareholder vote if not","page_number":496,"box":{"x":116,"y":265,"width":731,"height":12}},{"id":"5db62564-b97f-4df0-8fe9-ee25fa6f1d55","block_type":"box","text":"already required to do so under applicable law. We appreciate when supporting documentation from","page_number":496,"box":{"x":116,"y":281,"width":748,"height":12}},{"id":"64790480-f222-4fbd-aeba-d45bb7814028","block_type":"box","text":"companies or shareholders proposing to alter the corporate form clearly explains how the interests of","page_number":496,"box":{"x":116,"y":296,"width":755,"height":12}},{"id":"9f39b4ad-6772-45a0-9e57-14329f94e6ef","block_type":"box","text":"shareholders and different stakeholders would be impacted as well as the accountability and voting","page_number":496,"box":{"x":116,"y":312,"width":741,"height":12}},{"id":"62bb0d8d-c8e9-42e2-af91-af734731ad3e","block_type":"box","text":"mechanisms that would be available to shareholders. We generally support management proposals if","page_number":496,"box":{"x":117,"y":327,"width":756,"height":12}},{"id":"55e809c3-1730-49f9-a412-0642f17efc4e","block_type":"box","text":"our analysis indicates that shareholders’ financial interests are adequately protected. Corporate form","page_number":496,"box":{"x":116,"y":343,"width":752,"height":12}},{"id":"6decc1ba-1719-4aef-bfb4-e60bbefdaafa","block_type":"box","text":"shareholder proposals are evaluated on a case-by-case basis.","page_number":496,"box":{"x":116,"y":358,"width":468,"height":12}},{"id":"9b28d921-8145-4d29-b344-d23ad4b50df9","block_type":"box","text":"Shareholder proposals","page_number":496,"box":{"x":409,"y":397,"width":187,"height":12}},{"id":"c4d0a97d-b46c-4eda-b8b4-78ba7ff90da9","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":496,"box":{"x":117,"y":428,"width":717,"height":12}},{"id":"5a85f221-0ff3-4ba8-9436-5a8a2a99f484","block_type":"box","text":"meeting, as long as certain requirements are met. Shareholder proposals span a wide range of topics,","page_number":496,"box":{"x":117,"y":444,"width":762,"height":12}},{"id":"bf36e2b3-633a-4a82-bf8b-b5b5300e056f","block_type":"box","text":"including governance reforms, capital management, and changes in the management or disclosure of","page_number":496,"box":{"x":117,"y":459,"width":758,"height":12}},{"id":"92c49bae-3628-40d0-abf8-a10937dbfa8d","block_type":"box","text":"sustainability-related risks. These proposals have a varying degree of relevance for companies across","page_number":496,"box":{"x":116,"y":475,"width":763,"height":12}},{"id":"e7743bf0-7b6a-4d1f-af74-fbd5dd777dff","block_type":"box","text":"sectors, locations, and business models.","page_number":496,"box":{"x":116,"y":490,"width":307,"height":11}},{"id":"6e21a354-8fa4-4bef-b184-7862a58a17fb","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus","page_number":496,"box":{"x":117,"y":521,"width":764,"height":12}},{"id":"634792d7-34ad-4c52-8d13-d057403dc430","block_type":"box","text":"on the proposal’s implications for long-term financial value creation for shareholders. Our analysis","page_number":496,"box":{"x":116,"y":537,"width":730,"height":12}},{"id":"162c5133-615a-45da-92f1-ce5d951101bc","block_type":"box","text":"considers whether a shareholder proposal addresses a material risk that may impact a company’s","page_number":496,"box":{"x":116,"y":552,"width":732,"height":12}},{"id":"9ec21088-1451-40b6-af59-4ad15768ea31","block_type":"box","text":"long-term financial performance. BIS may support shareholder proposals that request disclosures that","page_number":496,"box":{"x":117,"y":568,"width":760,"height":12}},{"id":"3827f84c-91c3-4961-9634-b0f7709f843c","block_type":"box","text":"help us, as long-term investors on behalf of our clients, better understand the material risks and","page_number":496,"box":{"x":117,"y":583,"width":713,"height":12}},{"id":"11f0822d-c983-453f-ac81-56f8e444232d","block_type":"box","text":"opportunities companies face and how they are managing them, especially where this information is","page_number":496,"box":{"x":116,"y":599,"width":747,"height":12}},{"id":"99c04d55-fc0c-4e20-83b4-9143e530a060","block_type":"box","text":"additive given the company’s existing disclosures. We look for consistency between the specific","page_number":496,"box":{"x":116,"y":614,"width":715,"height":12}},{"id":"d2d69f41-067f-4654-8da7-bbced01a3d8e","block_type":"box","text":"request formally made in the proposal, the supporting documentation, and the proponents’ other","page_number":496,"box":{"x":117,"y":630,"width":717,"height":12}},{"id":"08e2b41a-414c-400f-bd47-aea1c336d888","block_type":"box","text":"communications on the issues. We also assess the company’s practices and disclosures and the costs","page_number":496,"box":{"x":116,"y":645,"width":769,"height":12}},{"id":"051868a0-2b5f-4168-b103-ddf3d0490414","block_type":"box","text":"and benefits to the company of meeting the request made in the proposal. We take into consideration a","page_number":496,"box":{"x":116,"y":661,"width":767,"height":12}},{"id":"65aecf94-1903-4a9c-8f98-5924d2f9942d","block_type":"box","text":"company’s governance practices and disclosures against those of their peers.","page_number":496,"box":{"x":116,"y":676,"width":577,"height":12}},{"id":"704eb0c9-c2a4-49a6-aa0c-1493b69f4b5e","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value","page_number":496,"box":{"x":117,"y":707,"width":762,"height":12}},{"id":"233fa831-a02b-41a2-a996-5485f412e425","block_type":"box","text":"or that seek to micromanage companies. We take into consideration the legal effect of the proposal, as","page_number":496,"box":{"x":116,"y":723,"width":764,"height":12}},{"id":"8ef951fe-efbe-4c29-9b3d-993f6055a146","block_type":"box","text":"shareholder proposals may be advisory or legally binding depending on the jurisdiction, while others","page_number":496,"box":{"x":116,"y":738,"width":741,"height":12}},{"id":"9e79749b-786d-40a0-a878-b397436905a9","block_type":"box","text":"may make requests that would be deemed illegal in a given jurisdiction.","page_number":496,"box":{"x":117,"y":754,"width":528,"height":12}},{"id":"416aa753-7f15-40aa-8fad-34400c95f5b7","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization","page_number":496,"box":{"x":117,"y":785,"width":740,"height":12}},{"id":"2c85807e-271b-41f1-be79-a6499f591082","block_type":"box","text":"that has submitted or advised on the proposal. We recognize that some shareholder proposals bundle","page_number":496,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"008e5f66-932a-423e-bde2-cd0dbf4b0de4","block_type":"box","text":"topics and/or specific requests. Further, the proponent’s supporting statement may refer to topics that","page_number":496,"box":{"x":116,"y":816,"width":753,"height":12}},{"id":"8beacb82-7212-468b-9830-503b103957f1","block_type":"box","text":"are not directly related to the request made in the proposal. In voting on behalf of clients, we must vote","page_number":496,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"ab730cfe-01b1-4189-8af4-52aa6c91179f","block_type":"box","text":"9","page_number":496,"box":{"x":143,"y":880,"width":4,"height":5}},{"id":"d4c95f7a-2f89-453d-b624-108f7b839767","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":496,"box":{"x":170,"y":880,"width":457,"height":9}},{"id":"70b84dec-0b14-4724-883a-45e7087bbcab","block_type":"box","text":"BlackRock Investment Stewardship","page_number":496,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"2d602856-0190-438c-998d-061784199794","block_type":"box","text":"Global Principles |","page_number":496,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"d66dbc3e-fab9-4cf2-b607-9a18594f0cca","block_type":"box","text":"11","page_number":496,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"0171c5fc-621d-448d-b868-8f93da934718","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":496,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d52eb800-efa3-4cfc-b069-aefcbcc357cf","block_type":"box","text":"yes or no on the proposal as phrased by the proponent. Therefore, when we vote in support of a","page_number":497,"box":{"x":116,"y":87,"width":720,"height":12}},{"id":"b31b4905-a159-4100-af07-c7d2bba773f2","block_type":"box","text":"proposal, we are not necessarily endorsing every element of the proposal or the reasoning, objectives,","page_number":497,"box":{"x":117,"y":102,"width":765,"height":13}},{"id":"b420ef85-cd39-42d6-80ee-45d6b8ec3df8","block_type":"box","text":"or supporting statement of the proponent. We may support a proposal for different reasons than those","page_number":497,"box":{"x":116,"y":118,"width":762,"height":12}},{"id":"49b9387d-59e2-4c01-bbeb-2aba64bb3aa6","block_type":"box","text":"put forth by the proponent, when we believe that overall it may advance our clients’ long-term financial","page_number":497,"box":{"x":117,"y":134,"width":762,"height":12}},{"id":"4bbbd45a-3f8a-4385-a120-84b195b67d1a","block_type":"box","text":"interests.","page_number":497,"box":{"x":117,"y":149,"width":72,"height":10}},{"id":"eda399a7-ecd4-44a2-a4ba-804bac7c5160","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that","page_number":497,"box":{"x":117,"y":180,"width":752,"height":12}},{"id":"9e4afe6f-0e10-40eb-92b0-0e90357a7edb","block_type":"box","text":"place restrictions and limitations on how BlackRock can interact with the companies in which we invest","page_number":497,"box":{"x":117,"y":196,"width":766,"height":11}},{"id":"34c48b80-7f67-4dae-9305-915d15d10e07","block_type":"box","text":"on behalf of our clients. BlackRock does not nominate directors for board elections or submit","page_number":497,"box":{"x":116,"y":211,"width":692,"height":10}},{"id":"e494838c-021f-4959-802b-0f87a1fe0621","block_type":"box","text":"shareholder proposals to companies. Non-compliance with these requirements could adversely affect","page_number":497,"box":{"x":116,"y":227,"width":757,"height":12}},{"id":"dfd103cf-f47d-4a97-a8e1-64b8781341b6","block_type":"box","text":"BlackRock’s ability to serve its clients’ interests.","page_number":497,"box":{"x":117,"y":242,"width":358,"height":12}},{"id":"2b36cab5-2149-4c6c-85fd-f3f2c02fc70f","block_type":"box","text":"Material sustainability-related risks and opportunities","page_number":497,"box":{"x":287,"y":281,"width":431,"height":12}},{"id":"b3cd2f93-5c30-47de-9b0b-20c9dfa672a3","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks","page_number":497,"box":{"x":116,"y":312,"width":758,"height":12}},{"id":"c568ff53-c5b8-4f42-86f3-ec8b3c0906da","block_type":"box","text":"and opportunities, is an important component of having an effective governance framework that","page_number":497,"box":{"x":116,"y":327,"width":714,"height":12}},{"id":"a932462c-66bf-4429-81d9-3c1c732b7f9e","block_type":"box","text":"supports durable, long-term financial value creation.","page_number":497,"box":{"x":116,"y":343,"width":385,"height":12}},{"id":"7acc5e07-a7a2-440b-b425-093005346bae","block_type":"box","text":"10","page_number":497,"box":{"x":503,"y":343,"width":11,"height":6}},{"id":"0f018279-0037-4e39-a080-4e415b215fac","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate","page_number":497,"box":{"x":116,"y":374,"width":703,"height":12}},{"id":"f4f445de-e204-4e6d-a994-17fedfee24d8","block_type":"box","text":"companies’ strategy and business practices related to material sustainability-related risks and","page_number":497,"box":{"x":116,"y":389,"width":699,"height":12}},{"id":"20ca554b-7b02-456e-a98d-1921d50cb953","block_type":"box","text":"opportunities. We find it helpful when companies’ disclosures demonstrate that they have a resilient","page_number":497,"box":{"x":116,"y":405,"width":743,"height":12}},{"id":"ba8e8229-487b-4ef3-889e-3f31b62cafaa","block_type":"box","text":"business model that integrates material sustainability-related risks and opportunities into their strategy,","page_number":497,"box":{"x":117,"y":420,"width":766,"height":12}},{"id":"8c02895c-3f7a-41bb-b1fd-e0259d60e7fa","block_type":"box","text":"risk management, and metrics and targets, including industry-specific metrics.","page_number":497,"box":{"x":117,"y":436,"width":583,"height":12}},{"id":"8ab4e693-1d86-4773-a936-069ce4c78935","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions.","page_number":497,"box":{"x":116,"y":467,"width":766,"height":12}},{"id":"e13b4dad-342a-46a8-9bd1-5348ae4fa081","block_type":"box","text":"The International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one","page_number":497,"box":{"x":116,"y":482,"width":743,"height":12}},{"id":"e04648d9-d7f1-4492-8289-ab61d77c5db5","block_type":"box","text":"such approach to standardization that we find useful in our analysis.","page_number":497,"box":{"x":116,"y":498,"width":503,"height":12}},{"id":"2206a710-195e-4f42-acfb-a7f57ff4f446","block_type":"box","text":"11","page_number":497,"box":{"x":622,"y":498,"width":9,"height":6}},{"id":"92be97cd-01aa-488e-92bc-2b54af45d252","block_type":"box","text":"However, we do not mandate","page_number":497,"box":{"x":633,"y":498,"width":228,"height":11}},{"id":"379a1687-bfd6-46b1-bbfb-2308cce5b38c","block_type":"box","text":"any specific disclosure framework companies should use, and recognize that companies may report","page_number":497,"box":{"x":116,"y":513,"width":747,"height":12}},{"id":"ebe6b44b-73c5-4ca1-8a78-68d8f065edd6","block_type":"box","text":"using different standards, some of which may be required by regulation. In such cases, we ask that","page_number":497,"box":{"x":117,"y":529,"width":739,"height":12}},{"id":"9fd69e10-d39c-4cf2-89bc-6b41ab2229af","block_type":"box","text":"companies highlight the metrics that are industry- or company-specific.","page_number":497,"box":{"x":116,"y":544,"width":530,"height":12}},{"id":"6a3fe768-c6b5-4996-85bc-fd32a0eafa60","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not","page_number":497,"box":{"x":116,"y":576,"width":702,"height":11}},{"id":"f1904e58-e986-4ffa-a2ea-e94712492042","block_type":"box","text":"prescribe timelines regarding when companies should make sustainability-related disclosures but","page_number":497,"box":{"x":117,"y":591,"width":725,"height":12}},{"id":"d73800d2-4ef1-45a0-9e0a-8147b7d450c6","block_type":"box","text":"appreciate it when companies produce them sufficiently in advance of their shareholder meeting, to the","page_number":497,"box":{"x":116,"y":606,"width":770,"height":12}},{"id":"c2b3a54f-6165-4c8c-97c8-e8337f633d8f","block_type":"box","text":"best of their abilities, to provide investors with time to assess the data and make informed voting","page_number":497,"box":{"x":117,"y":622,"width":718,"height":12}},{"id":"1929afb6-f57f-40e9-863d-f967b7b29e34","block_type":"box","text":"decisions.","page_number":497,"box":{"x":116,"y":638,"width":79,"height":9}},{"id":"90f1484d-e025-478e-ba2e-eafdd700eae7","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to","page_number":497,"box":{"x":117,"y":668,"width":695,"height":12}},{"id":"b88e91e3-c5ba-434c-8907-58ee4deecfe4","block_type":"box","text":"companies on best practices and disclosures. While not a voting item, we find it helpful to our","page_number":497,"box":{"x":116,"y":684,"width":692,"height":12}},{"id":"ec04718e-4208-4837-bfc6-0764b0006eb9","block_type":"box","text":"understanding of investment risk when companies disclose any relevant global sustainability-related","page_number":497,"box":{"x":117,"y":699,"width":740,"height":13}},{"id":"1dbe8836-6520-4471-a034-17f615aca518","block_type":"box","text":"10","page_number":497,"box":{"x":144,"y":750,"width":8,"height":5}},{"id":"081b06cd-1d92-4d4d-aee3-801738f5a246","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":497,"box":{"x":171,"y":750,"width":691,"height":10}},{"id":"44cac61c-1e3a-4894-a591-4c0df8337d3e","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":497,"box":{"x":170,"y":763,"width":686,"height":10}},{"id":"f0af56b8-3491-4906-a239-920e4aa9019e","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":497,"box":{"x":170,"y":776,"width":682,"height":10}},{"id":"d627fff5-f682-4dd7-ad93-e6373035e230","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":497,"box":{"x":170,"y":789,"width":683,"height":10}},{"id":"7aa830b1-a19f-4d4e-bd3e-80b6cd131cc1","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":497,"box":{"x":170,"y":802,"width":360,"height":10}},{"id":"e266a418-514f-4353-a112-9854e0d87bb6","block_type":"box","text":"11","page_number":497,"box":{"x":144,"y":815,"width":7,"height":5}},{"id":"9a109d10-7815-4bfc-866d-8ff11bac5484","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":497,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"fa795d28-d94e-419c-9b68-368a7e913c0b","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":497,"box":{"x":171,"y":828,"width":712,"height":10}},{"id":"a8a03d7b-785b-41cf-8179-463605c6c167","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":497,"box":{"x":170,"y":841,"width":649,"height":9}},{"id":"759261e6-54fd-4663-9b22-4464e088e3cd","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":497,"box":{"x":170,"y":854,"width":674,"height":9}},{"id":"9b619adb-5768-41bd-90fe-9e1eeba304c8","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":497,"box":{"x":170,"y":867,"width":647,"height":9}},{"id":"ded02a2a-7cbd-43d2-aa15-528c2d698578","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":497,"box":{"x":171,"y":880,"width":312,"height":7}},{"id":"8403450f-6748-408e-a897-b70abdf1c19a","block_type":"box","text":"BlackRock Investment Stewardship","page_number":497,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"f229d351-d722-4074-9852-ca88c8928c63","block_type":"box","text":"Global Principles |","page_number":497,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"ad222fa8-df5b-48ae-8f70-24ea8b31536f","block_type":"box","text":"12","page_number":497,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"2cb5c6fa-fefc-4f6d-bef9-798f0276c0bb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":497,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"87729fe3-409b-416f-8c1f-99c95e69ef10","block_type":"box","text":"standards adopted, the industry initiatives in which they participate, any peer group benchmarking","page_number":498,"box":{"x":116,"y":87,"width":731,"height":12}},{"id":"67b63714-5788-4058-8ad8-7109f786a247","block_type":"box","text":"undertaken, and any assurance processes to help investors understand their approach to sustainable","page_number":498,"box":{"x":117,"y":103,"width":758,"height":12}},{"id":"752cf0e3-b6de-462f-b9a2-839c8434570e","block_type":"box","text":"and responsible business practices.","page_number":498,"box":{"x":116,"y":118,"width":271,"height":12}},{"id":"6cc06f68-b436-4489-91f0-239a46ba95a7","block_type":"box","text":"Climate and nature-related risk","page_number":498,"box":{"x":117,"y":149,"width":250,"height":10}},{"id":"e144050d-36d2-46fe-89ee-773e3deab75b","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term","page_number":498,"box":{"x":117,"y":180,"width":745,"height":12}},{"id":"dec6873c-54fc-49c6-90f0-b811ea4caebc","block_type":"box","text":"financial value to investors. For companies facing material climate-related risks, we find it helpful when","page_number":498,"box":{"x":116,"y":196,"width":766,"height":12}},{"id":"21e36e18-6eff-4872-91b6-4b23c5105b2d","block_type":"box","text":"they publicly disclose, consistent with their business model and sector, how they intend to deliver long","page_number":498,"box":{"x":116,"y":211,"width":762,"height":12}},{"id":"b53d4333-45fa-4c4b-9d5c-49528bb6b993","block_type":"box","text":"term financial performance through the low-carbon transition, including where available, their transition","page_number":498,"box":{"x":116,"y":227,"width":766,"height":12}},{"id":"ffa0b213-17d3-4297-9393-6b34c07d4c09","block_type":"box","text":"plan.","page_number":498,"box":{"x":117,"y":242,"width":34,"height":12}},{"id":"f4d8a554-4df2-4732-9885-49ccecfce6e6","block_type":"box","text":"12, 13","page_number":498,"box":{"x":153,"y":242,"width":29,"height":7}},{"id":"d71493f8-b133-4182-8d18-01dce1dace96","block_type":"box","text":"From company disclosures and engagement, we seek to understand the strategies","page_number":498,"box":{"x":182,"y":242,"width":626,"height":12}},{"id":"467e4d17-eeee-4895-83b5-d2d566a76887","block_type":"box","text":"companies have in place to manage material risks to, and opportunities for, their long-term business","page_number":498,"box":{"x":116,"y":258,"width":748,"height":12}},{"id":"c0363c35-ea17-45ac-98a7-186a71191991","block_type":"box","text":"model associated with a range of climate-related scenarios.","page_number":498,"box":{"x":117,"y":273,"width":446,"height":12}},{"id":"9cc67ca3-0ee7-408d-9bb5-d4eba0a1b513","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate","page_number":498,"box":{"x":117,"y":304,"width":734,"height":12}},{"id":"74cfaf63-331d-462b-9b77-5efeb6b2326c","block_type":"box","text":"large companies to disclose such climate-related financial information, while in other jurisdictions these","page_number":498,"box":{"x":117,"y":320,"width":767,"height":12}},{"id":"d32fe274-16d8-492f-9bf6-f421edb56f1d","block_type":"box","text":"disclosures are viewed as best practice in the market.","page_number":498,"box":{"x":116,"y":335,"width":404,"height":12}},{"id":"274cdd90-d2c1-421c-98ec-a9aebd602503","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company","page_number":498,"box":{"x":116,"y":366,"width":726,"height":12}},{"id":"aedb1128-dd46-43b5-a536-1d888687492d","block_type":"box","text":"specific climate-related risks and opportunities, and informing investment decisions. Such disclosures","page_number":498,"box":{"x":116,"y":382,"width":757,"height":12}},{"id":"964c7440-aac8-4a3c-a084-4b8eabb8dec1","block_type":"box","text":"also provide investors with insights into how companies are managing the risks associated with a","page_number":498,"box":{"x":116,"y":397,"width":726,"height":12}},{"id":"ec090af6-3f38-41e1-82bf-559f460e6d37","block_type":"box","text":"transition to a low-carbon economy by managing their own carbon emissions or emissions intensities","page_number":498,"box":{"x":116,"y":413,"width":754,"height":12}},{"id":"f2f529ba-b6e8-47ef-a075-e489cf5f2644","block_type":"box","text":"to the extent financially practicable.","page_number":498,"box":{"x":116,"y":428,"width":266,"height":12}},{"id":"3a263e0b-e635-499a-a4ab-c06ba8893af5","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-,","page_number":498,"box":{"x":116,"y":459,"width":723,"height":12}},{"id":"2a38e975-9798-4b6c-8c01-8547b6782390","block_type":"box","text":"medium- and long-term targets, ideally science-based where these are available for their sector, for","page_number":498,"box":{"x":117,"y":475,"width":742,"height":12}},{"id":"9eab5008-aa86-4f2b-8957-5247ad60376e","block_type":"box","text":"scope 1 and 2 greenhouse gas emissions (GHG) reductions and to demonstrate how their targets are","page_number":498,"box":{"x":116,"y":490,"width":760,"height":12}},{"id":"2df175c9-5156-422b-887b-515c071ca2e2","block_type":"box","text":"consistent with the long-term financial interests of their investors.","page_number":498,"box":{"x":116,"y":506,"width":486,"height":12}},{"id":"08b2ee66-0ea3-4cba-9945-3588f24597b0","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this","page_number":498,"box":{"x":116,"y":537,"width":766,"height":12}},{"id":"e4cbd27d-8fc6-4f04-9f10-7e14f97fbafd","block_type":"box","text":"stage, we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity,","page_number":498,"box":{"x":116,"y":552,"width":749,"height":12}},{"id":"a13df11a-dcd8-4e60-a240-80a33c7d2c32","block_type":"box","text":"regulatory uncertainty, concerns about double-counting, and lack of direct control by companies. We","page_number":498,"box":{"x":117,"y":568,"width":749,"height":12}},{"id":"ed0b967a-491c-4661-9974-15e36df9ee9b","block_type":"box","text":"welcome disclosures and commitments that companies choose to make regarding material scope 3","page_number":498,"box":{"x":116,"y":583,"width":744,"height":12}},{"id":"bfabd566-812a-4dc5-8652-629031b05806","block_type":"box","text":"emissions and recognize that these are provided on a good-faith basis as methodology develops.","page_number":498,"box":{"x":116,"y":599,"width":728,"height":12}},{"id":"446b0a84-6c4d-4668-b031-093167923bfc","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or","page_number":498,"box":{"x":117,"y":630,"width":742,"height":12}},{"id":"810259ed-4f56-43b3-bb89-9d765aad1c93","block_type":"box","text":"supply chains are materially reliant on natural capital, nature-related risks and opportunities may affect","page_number":498,"box":{"x":116,"y":645,"width":765,"height":12}},{"id":"d952db2c-33c8-42ef-8888-6594ac7e7902","block_type":"box","text":"12","page_number":498,"box":{"x":144,"y":763,"width":8,"height":5}},{"id":"72873815-ab53-4d25-8847-930361d29a9b","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":498,"box":{"x":170,"y":763,"width":685,"height":10}},{"id":"8ab79b65-16df-4867-8f23-5c5fdff2a506","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":498,"box":{"x":170,"y":776,"width":670,"height":10}},{"id":"56a07851-05f8-4ee1-9f21-eea8db843fa4","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":498,"box":{"x":171,"y":789,"width":691,"height":10}},{"id":"94617017-90b1-4881-8b85-eb0e3b7e4cfe","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives,","page_number":498,"box":{"x":170,"y":802,"width":710,"height":10}},{"id":"95dccc21-96e6-4c64-8df3-ef3358d8e63b","block_type":"box","text":"and actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":498,"box":{"x":170,"y":815,"width":709,"height":10}},{"id":"7299193f-5c0e-4c4a-940c-528d75e920a5","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. While transition plans can","page_number":498,"box":{"x":170,"y":828,"width":710,"height":10}},{"id":"aa527c5a-f4de-4751-a5ae-1ae5a40834db","block_type":"box","text":"be helpful disclosure, BIS does not make the preparation and production of transition plans a voting issue. BIS may","page_number":498,"box":{"x":170,"y":841,"width":684,"height":9}},{"id":"c02164d4-4a6f-4aa0-b3aa-99ad892ba3bd","block_type":"box","text":"engage companies that have chosen to publish a transition plan to understand their planned actions and resource","page_number":498,"box":{"x":170,"y":854,"width":675,"height":9}},{"id":"ceacee66-4f10-49fc-9f42-95054e10fd64","block_type":"box","text":"implications. Website accessed in December 2025.","page_number":498,"box":{"x":170,"y":867,"width":303,"height":9}},{"id":"2c5535d9-439b-4cae-a5ec-81cbee282ba9","block_type":"box","text":"13","page_number":498,"box":{"x":144,"y":880,"width":8,"height":5}},{"id":"78a6b0b9-5212-4422-a284-633e1c80ce87","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December 2025.","page_number":498,"box":{"x":171,"y":880,"width":703,"height":9}},{"id":"7afbdda4-ac57-4637-b4d2-0b842e53f4a1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":498,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"5dfa9875-8f2e-494c-bdb2-cb6b8226cddd","block_type":"box","text":"Global Principles |","page_number":498,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"2b08569c-39c1-4f5c-922c-ea27592b79ff","block_type":"box","text":"13","page_number":498,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"a9136a7d-8f40-47c8-ad79-33275a7d93a0","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":498,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0d202f80-2f0c-4429-9368-0fc96e3c7469","block_type":"box","text":"their ability to generate long-term financial returns.","page_number":499,"box":{"x":116,"y":87,"width":372,"height":12}},{"id":"1720ea41-708a-4feb-892f-75e6c88ff5f4","block_type":"box","text":"14","page_number":499,"box":{"x":491,"y":87,"width":11,"height":6}},{"id":"18111779-3747-4267-a36f-bf27f905a092","block_type":"box","text":"For these companies, we rely on disclosures to","page_number":499,"box":{"x":502,"y":87,"width":360,"height":12}},{"id":"f2dff246-4e3d-4911-8b50-ed9f2bddede5","block_type":"box","text":"understand how their strategies consider nature-related impacts and dependencies and to assess how","page_number":499,"box":{"x":117,"y":103,"width":765,"height":12}},{"id":"bbf9123e-90e7-45b8-9c91-4cd7b14e5aa5","block_type":"box","text":"the board oversees these risks.","page_number":499,"box":{"x":116,"y":118,"width":232,"height":10}},{"id":"1aec9a6d-eeee-4402-ac14-3ac5d78c3846","block_type":"box","text":"15","page_number":499,"box":{"x":351,"y":118,"width":10,"height":6}},{"id":"a3bca79d-efc8-4227-9389-683c5fb4d945","block_type":"box","text":"Companies’ impact on their workforce, supply chains, and communities","page_number":499,"box":{"x":117,"y":149,"width":579,"height":12}},{"id":"cf82bd45-3924-4a67-bf28-98c9e843aca4","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term","page_number":499,"box":{"x":117,"y":180,"width":768,"height":12}},{"id":"5e5f0471-1b1f-4114-a308-870c1bb0d133","block_type":"box","text":"financial performance. For many companies, key stakeholders include employees, business supply","page_number":499,"box":{"x":116,"y":196,"width":741,"height":12}},{"id":"459d9332-196b-4b3f-9481-224d9c81cdef","block_type":"box","text":"chains, clients and consumers, regulators, and the communities in which they operate.","page_number":499,"box":{"x":116,"y":211,"width":647,"height":12}},{"id":"6d19c8a5-01ef-45f7-be99-f8c1a4f6e1d2","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives","page_number":499,"box":{"x":117,"y":242,"width":769,"height":12}},{"id":"7f7dc92c-fadf-40f4-ab97-dd79131c90b2","block_type":"box","text":"are more likely to deliver durable, long-term financial performance. By contrast, we have found that","page_number":499,"box":{"x":116,"y":258,"width":739,"height":12}},{"id":"eb440cdb-7f5b-4f87-a2e2-c5c12f011ac6","block_type":"box","text":"poor relationships may create adverse impacts that could expose companies to legal, regulatory,","page_number":499,"box":{"x":117,"y":273,"width":722,"height":12}},{"id":"38c7e1ad-e5b7-4ee5-bbb7-d9a5c05420b6","block_type":"box","text":"operational, and reputational risks. This is particularly relevant to a company’s workforce, which is","page_number":499,"box":{"x":116,"y":289,"width":730,"height":12}},{"id":"758bbce0-61e0-4c3f-b19e-497293fdd888","block_type":"box","text":"central to long-term financial value creation.","page_number":499,"box":{"x":116,"y":304,"width":324,"height":12}},{"id":"b57ce437-bf5b-4c5b-ae6a-b7e4b4f4e59d","block_type":"box","text":"16","page_number":499,"box":{"x":442,"y":304,"width":11,"height":6}},{"id":"e620a293-b792-45ae-a351-616a9c40aa5f","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how","page_number":499,"box":{"x":116,"y":335,"width":743,"height":12}},{"id":"6ec1721d-399f-468f-be0a-220980300ffb","block_type":"box","text":"they have identified their key stakeholders and considered their interests in business decision-making.","page_number":499,"box":{"x":116,"y":351,"width":763,"height":12}},{"id":"b309e766-ccf4-49fd-a04a-92e3ebd00da2","block_type":"box","text":"In addition to understanding broader stakeholder relationships, BIS finds it helpful when companies","page_number":499,"box":{"x":117,"y":366,"width":740,"height":12}},{"id":"bd15da04-3184-424f-a3d3-226e06819439","block_type":"box","text":"discuss how they consider the needs of their workforce today, and the skills required for their future","page_number":499,"box":{"x":116,"y":382,"width":742,"height":12}},{"id":"3b639547-a44f-4a33-8815-2dbb3777f933","block_type":"box","text":"business strategy. We are also interested in understanding how the board monitors and engages on","page_number":499,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"462b6312-364c-4bed-9391-3f6881dc02b7","block_type":"box","text":"these matters, given it is well positioned to ensure that the approach taken by management is informed","page_number":499,"box":{"x":116,"y":413,"width":770,"height":12}},{"id":"f97170d2-a8d6-4228-a47b-c129b1fad129","block_type":"box","text":"by and aligns with the company’s strategy. BIS does not direct a company’s policies or practices, which","page_number":499,"box":{"x":117,"y":428,"width":771,"height":12}},{"id":"95e7cf76-3318-4e18-845e-eef6d70e3de2","block_type":"box","text":"are the responsibility of management and the board.","page_number":499,"box":{"x":116,"y":444,"width":394,"height":12}},{"id":"03d0012a-5777-4e42-b37f-5316502db948","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse","page_number":499,"box":{"x":117,"y":475,"width":754,"height":12}},{"id":"fe79b614-fa31-486d-9535-48c4881b6d52","block_type":"box","text":"impacts that could arise from their business practices and affect critical relationships with their","page_number":499,"box":{"x":117,"y":490,"width":701,"height":12}},{"id":"350b8723-e3cc-46e6-b9af-c52eb762fa08","block_type":"box","text":"stakeholders. We encourage companies to implement, to the extent appropriate, monitoring processes","page_number":499,"box":{"x":116,"y":506,"width":767,"height":12}},{"id":"9e254099-f3fa-4378-a1e6-cb1925476cc0","block_type":"box","text":"(often referred to as due diligence) to identify and mitigate potential adverse impacts and grievance","page_number":499,"box":{"x":117,"y":521,"width":740,"height":12}},{"id":"d874bb19-d49a-4f0e-a614-56097f5832a6","block_type":"box","text":"mechanisms to remediate any actual adverse material impacts.","page_number":499,"box":{"x":117,"y":537,"width":474,"height":12}},{"id":"88ebf971-60fb-4562-9651-bed89d6f00c2","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key","page_number":499,"box":{"x":116,"y":568,"width":729,"height":12}},{"id":"c0ed039d-42ba-4a80-8f6a-cc771a5de813","block_type":"box","text":"stakeholders and may convey concerns about board oversight in our voting on director elections or","page_number":499,"box":{"x":116,"y":583,"width":739,"height":12}},{"id":"7ad14e8a-6de8-4974-852c-e6baeffe4601","block_type":"box","text":"supporting a business relevant shareholder proposal when, in our assessment, the board is not acting","page_number":499,"box":{"x":116,"y":599,"width":761,"height":12}},{"id":"a923c12f-c0ac-416e-b357-f53006ebb2c7","block_type":"box","text":"in shareholders’ long-term financial interests.","page_number":499,"box":{"x":117,"y":614,"width":337,"height":12}},{"id":"e0a67419-9a3d-4382-b76a-6868e8bf602c","block_type":"box","text":"BlackRock’s oversight of its investment stewardship activities","page_number":499,"box":{"x":251,"y":653,"width":503,"height":12}},{"id":"d6883cad-3d62-45c1-b8e0-ef4b1d338274","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on","page_number":499,"box":{"x":117,"y":684,"width":736,"height":12}},{"id":"b1a3b39b-53c5-4c64-8bc0-46819006f8fd","block_type":"box","text":"behalf of clients at the global and regional level.","page_number":499,"box":{"x":117,"y":699,"width":352,"height":13}},{"id":"e6b6925a-db6d-46ae-8859-8f3290bc6c42","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the","page_number":499,"box":{"x":116,"y":730,"width":694,"height":13}},{"id":"e2e8428b-a9f3-48e2-8539-e279020b9370","block_type":"box","text":"Committee) supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to","page_number":499,"box":{"x":117,"y":746,"width":755,"height":12}},{"id":"69181fc2-6252-4f13-8915-3776b45d3009","block_type":"box","text":"14","page_number":499,"box":{"x":144,"y":789,"width":8,"height":5}},{"id":"584f4693-fa88-421d-9b2d-2ca6fb81c563","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December 2025.","page_number":499,"box":{"x":171,"y":789,"width":697,"height":10}},{"id":"4bdaad93-9f6e-41a5-b929-bc41ebeee888","block_type":"box","text":"15","page_number":499,"box":{"x":144,"y":802,"width":8,"height":5}},{"id":"2df045b8-a197-4695-9d3f-4cc625a0da40","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":499,"box":{"x":170,"y":802,"width":660,"height":10}},{"id":"7e1e0cc5-a2ee-41d7-9f18-b21d4027a4f5","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of the","page_number":499,"box":{"x":170,"y":815,"width":704,"height":10}},{"id":"e2c96812-d0b1-4c42-85a1-3d22d451800a","block_type":"box","text":"Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":499,"box":{"x":170,"y":828,"width":689,"height":10}},{"id":"24ae4c2b-53a2-4fd8-8e85-ebee751724da","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":499,"box":{"x":170,"y":841,"width":680,"height":9}},{"id":"bd91fcc6-1df3-40f5-b834-1c633ad05f95","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":499,"box":{"x":170,"y":854,"width":680,"height":9}},{"id":"0996d283-38f0-4f00-b13b-79e319e9b62b","block_type":"box","text":"16","page_number":499,"box":{"x":144,"y":867,"width":8,"height":5}},{"id":"50d826dc-460a-4216-b59b-899f4b91af89","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":499,"box":{"x":171,"y":867,"width":677,"height":9}},{"id":"d742f370-255c-4c00-b392-b14ddde37b1d","block_type":"box","text":"December 2025.","page_number":499,"box":{"x":171,"y":880,"width":97,"height":7}},{"id":"e06d86f4-c467-4217-b5b3-f5e9efec97f7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":499,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"ecba67c4-cbeb-443a-95ea-0a697dfc27e3","block_type":"box","text":"Global Principles |","page_number":499,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"6034ee5c-35ab-4557-9a89-f2124a46a9f6","block_type":"box","text":"14","page_number":499,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"88af5384-8e24-4331-97f8-0e0e3a89c5eb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":499,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"893ed3da-9071-4ceb-87a2-2b8b0606dd3f","block_type":"box","text":"policies and procedures as well as market-level stewardship requirements. The Committee reviews","page_number":500,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"61274f3e-62e7-4c79-91ef-49c2e0f52123","block_type":"box","text":"and approves amendments to the Global Principles and regional voting guidelines. The Committee","page_number":500,"box":{"x":116,"y":102,"width":738,"height":13}},{"id":"cabccb05-1e24-4098-810f-a2efd72642ca","block_type":"box","text":"also reviews periodic reports regarding the votes cast by BIS on behalf of clients, as well as updates","page_number":500,"box":{"x":116,"y":118,"width":749,"height":12}},{"id":"b0e0a10f-de81-4f45-8757-3ddca35029d3","block_type":"box","text":"on material process issues, procedural changes, and other risk oversight considerations. The","page_number":500,"box":{"x":116,"y":134,"width":697,"height":12}},{"id":"2430781c-3349-4632-8c39-0bee8780f203","block_type":"box","text":"Committee is chaired by the Global Heads of the Investment Stewardship function and its members","page_number":500,"box":{"x":117,"y":149,"width":743,"height":12}},{"id":"18e0548d-3211-4070-900c-481e494305c1","block_type":"box","text":"include senior BlackRock executives with legal, risk, and other experience relevant to team oversight","page_number":500,"box":{"x":117,"y":165,"width":752,"height":12}},{"id":"f331e471-4cb6-4b26-9453-3c48dc7460d1","block_type":"box","text":"who are independent from the investment stewardship function.","page_number":500,"box":{"x":116,"y":180,"width":477,"height":12}},{"id":"26451e39-de8f-45af-91ba-2f84a63c453c","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with","page_number":500,"box":{"x":116,"y":211,"width":769,"height":12}},{"id":"98fda425-0039-4ce4-8e37-fbb0234b98d0","block_type":"box","text":"the Global Principles and regional voting guidelines. At the regional level, three regional Heads for the","page_number":500,"box":{"x":116,"y":227,"width":761,"height":12}},{"id":"0cafc37f-78e5-4659-8de5-fdc4f25abb4d","block_type":"box","text":"Americas, APAC, and EMEA oversee BIS’ activities for their specific markets.","page_number":500,"box":{"x":116,"y":242,"width":581,"height":12}},{"id":"9034d098-d7ca-4d99-91b8-83e2bcf7d627","block_type":"box","text":"Vote execution","page_number":500,"box":{"x":440,"y":281,"width":124,"height":9}},{"id":"798fe322-2fff-46bc-b11d-64b4eb33fd1b","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We","page_number":500,"box":{"x":117,"y":312,"width":739,"height":12}},{"id":"c1b80c1e-e7ae-44da-ad03-352ffed61a31","block_type":"box","text":"have processes in place to consider all proxies for which we have voting authority, and submit voting","page_number":500,"box":{"x":117,"y":327,"width":751,"height":12}},{"id":"52b49b16-0aa4-43dc-b924-4449ebe8afc6","block_type":"box","text":"decisions, or refrain from voting when logistical issues arise (see below). The BIS Benchmark Policies","page_number":500,"box":{"x":116,"y":343,"width":761,"height":12}},{"id":"28b0e2d5-77c8-4b4b-ba6c-337190b20276","block_type":"box","text":"– and the vote decisions made consistent with those policies – reflect our reasonable and independent","page_number":500,"box":{"x":116,"y":358,"width":766,"height":12}},{"id":"2375e904-f04b-471f-85a0-f8a9183443c6","block_type":"box","text":"judgment and are made without regard to the relationship between the issuer of the proxy (or any","page_number":500,"box":{"x":115,"y":374,"width":728,"height":12}},{"id":"768fa700-cc23-43b5-8d70-a0894d16a290","block_type":"box","text":"shareholder proponent or dissident shareholder) and the Fund, the Fund’s affiliates (if any), BlackRock","page_number":500,"box":{"x":116,"y":389,"width":767,"height":12}},{"id":"1be200df-4c57-4783-a7b1-e473d69f42f8","block_type":"box","text":"or BlackRock’s affiliates, or BlackRock employees (see “Conflicts management policies and","page_number":500,"box":{"x":116,"y":405,"width":685,"height":12}},{"id":"fb0deb6a-7f23-43f4-9721-955aebc899f4","block_type":"box","text":"procedures,” below).","page_number":500,"box":{"x":117,"y":420,"width":157,"height":12}},{"id":"ae42195a-72e4-4d0f-ad13-8d3e75229d16","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well","page_number":500,"box":{"x":117,"y":451,"width":749,"height":12}},{"id":"95568c0d-5260-4e6a-856a-919c359212dc","block_type":"box","text":"as the cost of voting such proxies on behalf of our clients. These issues include, but are not limited to:","page_number":500,"box":{"x":116,"y":467,"width":761,"height":12}},{"id":"df6d751e-6529-45d9-a2b6-0af753010f2b","block_type":"box","text":"1) untimely notice of shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3)","page_number":500,"box":{"x":118,"y":482,"width":754,"height":12}},{"id":"64ff467c-278a-475e-a253-4a98e2590c2e","block_type":"box","text":"requirements to vote proxies in person; 4) “share-blocking” (requirements that investors who exercise","page_number":500,"box":{"x":117,"y":498,"width":756,"height":12}},{"id":"14babec5-2d2a-4e67-a6f8-2f1b9d03f863","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":500,"box":{"x":116,"y":513,"width":728,"height":12}},{"id":"ef696bcf-d500-4bdd-b739-38fd51c14d03","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); 5) potential difficulties in","page_number":500,"box":{"x":116,"y":529,"width":701,"height":12}},{"id":"82c272eb-5c8e-418e-baba-31fc347f13c9","block_type":"box","text":"translating the proxy; 6) regulatory constraints; and 7) requirements to provide local agents with","page_number":500,"box":{"x":116,"y":544,"width":714,"height":12}},{"id":"6dbb328b-0fee-4a36-b061-1cbea00bc3a2","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":500,"box":{"x":117,"y":560,"width":706,"height":12}},{"id":"e698a55b-b49b-499b-89aa-44e9393299d1","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":500,"box":{"x":116,"y":575,"width":742,"height":12}},{"id":"26b58ddf-d3bb-4859-b38e-b983e0fb990a","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. 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Such influence might stem from any relationship between the investee company","page_number":500,"box":{"x":117,"y":800,"width":750,"height":12}},{"id":"c753f90c-37a5-4e6d-8256-ae27b027d32e","block_type":"box","text":"(or any shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund","page_number":500,"box":{"x":117,"y":816,"width":760,"height":12}},{"id":"226054bb-dd87-436b-8644-56a28c9c6714","block_type":"box","text":"or a Fund’s affiliates, or BlackRock employees.","page_number":500,"box":{"x":116,"y":831,"width":354,"height":12}},{"id":"03140a43-1c4d-4c7b-b781-11a13100d569","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":500,"box":{"x":117,"y":862,"width":630,"height":12}},{"id":"4ba7073d-60b2-4a1b-8178-eae9d7508e55","block_type":"box","text":"BlackRock Investment Stewardship","page_number":500,"box":{"x":117,"y":909,"width":282,"height":12}},{"id":"1d90d439-3914-4fcf-abe2-8a8312e0c621","block_type":"box","text":"Global Principles |","page_number":500,"box":{"x":726,"y":909,"width":132,"height":12}},{"id":"c92aac0c-f3be-4129-a744-aea6dc8ccee0","block_type":"box","text":"15","page_number":500,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"adf99de0-76ed-4d5c-95e0-8fc9977af0ba","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":500,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a61bab5d-59a7-4593-8bef-4694c2b0a106","block_type":"box","text":"Securities lending","page_number":501,"box":{"x":428,"y":87,"width":149,"height":12}},{"id":"6dcb255c-47c7-4adc-91ba-114a82d73800","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. 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Entitlements associated with the lent securities","page_number":501,"box":{"x":117,"y":165,"width":715,"height":12}},{"id":"6b1186a9-4f91-4fb7-9dd5-f9317c72d140","block_type":"box","text":"(dividends, coupons, etc.), while on loan are paid back to the lender of the security as stipulated in","page_number":501,"box":{"x":117,"y":180,"width":733,"height":12}},{"id":"711d62c8-48d7-43e9-a3d9-07cfbc972481","block_type":"box","text":"industry standard legal agreements.","page_number":501,"box":{"x":117,"y":196,"width":271,"height":12}},{"id":"e9e6cc98-7dbe-4524-a3c8-6bf3c33aa6eb","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote","page_number":501,"box":{"x":116,"y":227,"width":741,"height":12}},{"id":"653fcb27-342a-4691-8802-8c45dd46c015","block_type":"box","text":"shares on loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset","page_number":501,"box":{"x":116,"y":242,"width":772,"height":12}},{"id":"ea03ed9c-e74d-4358-8b90-3cc54515ba72","block_type":"box","text":"manager to our clients in helping them achieve their investment goals. While this has occurred in a","page_number":501,"box":{"x":117,"y":258,"width":736,"height":12}},{"id":"0f28ae7e-aefc-44e0-9593-68eea97c5f9a","block_type":"box","text":"limited number of cases, the decision to recall securities on loan as part of BlackRock’s securities","page_number":501,"box":{"x":117,"y":273,"width":727,"height":12}},{"id":"c81073ab-35e8-4063-9e1c-17cb1c1416b0","block_type":"box","text":"lending program in order to vote is based on an evaluation of various factors that include, but are not","page_number":501,"box":{"x":117,"y":289,"width":751,"height":12}},{"id":"46256ba4-b02b-498d-ac52-10aeed6181ba","block_type":"box","text":"limited to, assessing potential securities lending revenue alongside the potential long-term financial","page_number":501,"box":{"x":117,"y":304,"width":739,"height":12}},{"id":"dcae1f0a-cfa7-4cd2-8290-f14f0c55e2f5","block_type":"box","text":"value to clients of voting those securities (based on the information available at the time of recall","page_number":501,"box":{"x":116,"y":320,"width":719,"height":12}},{"id":"1a429e90-8bbb-4254-ab08-ca62747db3fc","block_type":"box","text":"consideration).","page_number":501,"box":{"x":116,"y":335,"width":109,"height":12}},{"id":"59bb3afa-1eed-44f6-a1b0-0feed987e656","block_type":"box","text":"17","page_number":501,"box":{"x":227,"y":335,"width":11,"height":6}},{"id":"1daca437-345b-4b13-8d94-b240dc38ef2c","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative","page_number":501,"box":{"x":238,"y":335,"width":591,"height":12}},{"id":"147c0509-6409-459a-8f07-b6600b3d0639","block_type":"box","text":"Analysis teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":501,"box":{"x":116,"y":351,"width":650,"height":12}},{"id":"e1139f81-8a5a-4224-ae96-a81be523a484","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of","page_number":501,"box":{"x":117,"y":382,"width":749,"height":12}},{"id":"4c7db6ed-407d-4d3b-ac98-e06118aa66be","block_type":"box","text":"voting shares would be less than the potential revenue the loan may provide clients. However, in","page_number":501,"box":{"x":116,"y":397,"width":722,"height":12}},{"id":"53d7124c-8b95-4dc0-8bd5-7dd9684c3a06","block_type":"box","text":"certain instances, BlackRock may determine, in our independent business judgment as a fiduciary, that","page_number":501,"box":{"x":116,"y":413,"width":771,"height":12}},{"id":"19f9de66-5959-430d-a8ef-4b7e9d714d80","block_type":"box","text":"the value of voting outweighs the securities lending revenue loss to clients and would therefore recall","page_number":501,"box":{"x":116,"y":428,"width":754,"height":12}},{"id":"26794c3c-32ed-43f1-b91c-79bee39273c3","block_type":"box","text":"shares to be voted in those instances. It is important to note that the majority of lendable assets in the","page_number":501,"box":{"x":116,"y":444,"width":760,"height":12}},{"id":"8ab4b7d8-63dd-428b-a2f2-7bdd5074289b","block_type":"box","text":"market at any given time are not out on loan.","page_number":501,"box":{"x":117,"y":459,"width":337,"height":12}},{"id":"f848d1ca-a4ac-423b-ac78-bb2647ded399","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in","page_number":501,"box":{"x":117,"y":490,"width":731,"height":12}},{"id":"db245959-362a-47d0-a86c-ba0ad40c093e","block_type":"box","text":"order to vote and may modify it as necessary.","page_number":501,"box":{"x":116,"y":506,"width":344,"height":12}},{"id":"57920d4e-7cec-4034-a5e2-fab636e9fc74","block_type":"box","text":"Voting Choice","page_number":501,"box":{"x":443,"y":544,"width":118,"height":12}},{"id":"7b13ab05-eb1d-441b-a992-fdcbe7290213","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to","page_number":501,"box":{"x":117,"y":575,"width":733,"height":12}},{"id":"23041671-670d-4aa0-a56c-81219685cfa2","block_type":"box","text":"participate in the proxy voting process, where legally and operationally viable.","page_number":501,"box":{"x":117,"y":591,"width":573,"height":12}},{"id":"25076414-1ffa-48da-926e-412b5caab3a2","block_type":"box","text":"18","page_number":501,"box":{"x":693,"y":591,"width":10,"height":6}},{"id":"387c35a3-c548-4df1-a9af-3bc2759677fa","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in","page_number":501,"box":{"x":116,"y":622,"width":748,"height":12}},{"id":"836d9796-b58e-41c5-8b56-8291be62d4b1","block_type":"box","text":"the U.S., UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well","page_number":501,"box":{"x":116,"y":637,"width":756,"height":12}},{"id":"ca72b740-5b75-4a87-a599-f0ffd183553c","block_type":"box","text":"as eligible clients in certain institutional pooled funds in the U.S., UK, Canada, and Switzerland that","page_number":501,"box":{"x":116,"y":653,"width":740,"height":12}},{"id":"64f90a32-db61-43f6-88bd-56febdc9b389","block_type":"box","text":"use systematic active equity (SAE) strategies. In addition, institutional clients in separately managed","page_number":501,"box":{"x":117,"y":668,"width":742,"height":12}},{"id":"a93832da-1124-49a6-8542-4d610486c249","block_type":"box","text":"accounts (SMAs) continue to be eligible for BlackRock Voting Choice regardless of their investment","page_number":501,"box":{"x":116,"y":684,"width":738,"height":12}},{"id":"d6c4ee0a-98df-49d3-af98-005893d03bb8","block_type":"box","text":"17","page_number":501,"box":{"x":144,"y":750,"width":8,"height":5}},{"id":"5d9d7f29-1df0-4246-a49f-39bcb1864cc6","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record date of a","page_number":501,"box":{"x":171,"y":750,"width":710,"height":10}},{"id":"03ed2c36-6990-4b58-87a8-db1a13265866","block_type":"box","text":"shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not practicable to","page_number":501,"box":{"x":170,"y":763,"width":661,"height":10}},{"id":"8973ec2f-c77f-4ebe-99ac-36938217180d","block_type":"box","text":"evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any shares on loan in","page_number":501,"box":{"x":170,"y":776,"width":679,"height":10}},{"id":"ec01d42e-ea39-4395-b14f-6c9d9ea30709","block_type":"box","text":"advance of the record date for the annual meeting. 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All other trademarks are those of their respective","page_number":503,"box":{"x":116,"y":893,"width":731,"height":12}},{"id":"2d33186e-e9ef-4c33-8bde-7b131cba03e2","block_type":"box","text":"owners.","page_number":503,"box":{"x":116,"y":911,"width":57,"height":7}},{"id":"a0207037-0075-4eef-8fc1-ceaac1952c09","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":503,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"da49aec4-0a64-4da7-ae8f-e9bc3631dc1e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":504,"box":{"x":359,"y":87,"width":287,"height":12}},{"id":"0de9e5b6-2be3-4128-addf-11a10d88079f","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":504,"box":{"x":287,"y":118,"width":430,"height":12}},{"id":"044a28de-76ad-4f2c-9245-9f144a8d6174","block_type":"box","text":"Effective as of January 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BlackRock offers a range of proxy voting policies to reflect clients’ individual investment choices","page_number":506,"box":{"x":117,"y":149,"width":770,"height":12}},{"id":"3ef0a141-2871-464b-9c61-f8199935f249","block_type":"box","text":"and goals.","page_number":506,"box":{"x":116,"y":165,"width":82,"height":12}},{"id":"917904dd-fe88-4f86-b496-43659a384558","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’","page_number":506,"box":{"x":117,"y":196,"width":758,"height":12}},{"id":"60185f02-15cb-422e-9f6c-09346e08a0c6","block_type":"box","text":"assets invested in index equity strategies. BIS takes a long-term approach in our stewardship efforts,","page_number":506,"box":{"x":116,"y":211,"width":754,"height":12}},{"id":"aa89178b-e8a5-4163-ba40-135b905422f9","block_type":"box","text":"reflecting the investment horizons of the majority of our clients. 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Net zero commitments are sourced from respective company","page_number":506,"box":{"x":171,"y":854,"width":704,"height":9}},{"id":"c5ea57ca-c70f-424a-b0a2-034dff8e1ebc","block_type":"box","text":"websites, as of January 2025.","page_number":506,"box":{"x":170,"y":867,"width":176,"height":9}},{"id":"ac039be5-e27b-4f65-af41-49c303deef3a","block_type":"box","text":"5","page_number":506,"box":{"x":143,"y":880,"width":4,"height":5}},{"id":"f738ea87-bf3d-4d39-985f-7b82f3b27084","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":506,"box":{"x":170,"y":880,"width":332,"height":9}},{"id":"608de9fe-bfed-4c85-b7e7-6729348da7fb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":506,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"307a50a8-1ec3-445a-80c2-787805150290","block_type":"box","text":"Climate and Decarbonization St","page_number":506,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"a29b4abc-f506-4480-94e4-ad21587e3af3","block_type":"box","text":"ewardship Guidelines |","page_number":506,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"87fc18ea-752f-447f-849f-f2cc13a20c29","block_type":"box","text":"3","page_number":506,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"8bb68e58-b0ce-4db5-a372-45e43ed9aa51","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":506,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1ede872c-9b54-48dc-a5ae-2845fc666cf7","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines","page_number":507,"box":{"x":269,"y":87,"width":466,"height":12}},{"id":"ea51fe12-9f48-44f5-897f-70137225cd0c","block_type":"box","text":"These Guidelines set out the dedicated team’s approach to engaging and voting on matters related to","page_number":507,"box":{"x":116,"y":118,"width":759,"height":12}},{"id":"377f091c-8d12-464f-88cf-84a640c63a20","block_type":"box","text":"climate risks and the transition to a low-carbon economy at companies that are held by in-scope funds","page_number":507,"box":{"x":116,"y":134,"width":763,"height":12}},{"id":"c4774014-1f9a-4c0b-bc0b-e4495efe4a70","block_type":"box","text":"and accounts that apply these Guidelines.","page_number":507,"box":{"x":116,"y":149,"width":317,"height":12}},{"id":"d8484348-1a5d-4987-a170-cc0928fd3d17","block_type":"box","text":"The Guidelines differ from the Benchmark Policies in that they consider, in addition to financial","page_number":507,"box":{"x":116,"y":180,"width":705,"height":12}},{"id":"4cc09f80-f381-4423-89bd-f57bcbc49e7e","block_type":"box","text":"objectives, companies’ strategies to align with the transition to a low-carbon economy. 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This includes receiving independent,","page_number":509,"box":{"x":184,"y":467,"width":671,"height":12}},{"id":"c2e18e15-a3e6-47c1-94a7-8548985d15fb","block_type":"box","text":"third-party assurances, as audit and assurance standards are developed.","page_number":509,"box":{"x":183,"y":482,"width":549,"height":12}},{"id":"cb6cbbbb-cb32-4b87-a71c-a0735fcc4e85","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions.","page_number":509,"box":{"x":150,"y":506,"width":536,"height":12}},{"id":"9378bf04-b169-4c87-9cb0-8b5377002da9","block_type":"box","text":"16","page_number":509,"box":{"x":689,"y":506,"width":10,"height":6}},{"id":"5d05166e-9aa6-443d-ba2a-d121f5008934","block_type":"box","text":",","page_number":509,"box":{"x":701,"y":514,"width":8,"height":3}},{"id":"2caf9d4c-3786-4963-a88d-04ea5ebaa1e6","block_type":"box","text":"17","page_number":509,"box":{"x":710,"y":506,"width":11,"height":6}},{"id":"d617e4e6-c3f8-4bc2-af33-b185e5c6ab69","block_type":"box","text":"In addition, the","page_number":509,"box":{"x":721,"y":506,"width":120,"height":11}},{"id":"81b388e3-2648-42ce-b3e6-520c5927a8d8","block_type":"box","text":"dedicated team looks to companies to disclose their emissions reduction targets for scope 1","page_number":509,"box":{"x":184,"y":521,"width":687,"height":12}},{"id":"f649dddc-5e5e-45f6-b4ba-a59c8b455705","block_type":"box","text":"and 2 emissions, science-based where possible. The team welcomes disclosure of targets or","page_number":509,"box":{"x":184,"y":537,"width":695,"height":12}},{"id":"1f2b00e7-7e91-4448-8919-cb5e05a0f0c8","block_type":"box","text":"indicative goals, where companies have set them, for scope 3 emissions reductions. Scope 3","page_number":509,"box":{"x":184,"y":552,"width":696,"height":12}},{"id":"56290375-ea4a-44dc-afd4-d2981e6421b3","block_type":"box","text":"13","page_number":509,"box":{"x":144,"y":583,"width":8,"height":4}},{"id":"5bdf8f63-f279-4ed8-a1a6-a0440017e16a","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where reporting","page_number":509,"box":{"x":170,"y":582,"width":695,"height":10}},{"id":"2f6c0458-52ad-4d55-94ba-02b44ff81760","block_type":"box","text":"methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their business","page_number":509,"box":{"x":170,"y":595,"width":686,"height":10}},{"id":"08211faa-0985-4f4c-8eed-2a2489b0c6ca","block_type":"box","text":"models through the low-carbon transition may require forward-looking statements.","page_number":509,"box":{"x":170,"y":608,"width":485,"height":10}},{"id":"db18b4be-5b71-4279-adad-36f0094e67f8","block_type":"box","text":"14","page_number":509,"box":{"x":144,"y":621,"width":8,"height":5}},{"id":"2b224c4a-8f48-4a86-9cf8-b6f70c8d929d","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":509,"box":{"x":170,"y":621,"width":666,"height":10}},{"id":"0f82e6cd-9309-4e4c-b960-523541518a49","block_type":"box","text":"Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework and the","page_number":509,"box":{"x":171,"y":634,"width":712,"height":10}},{"id":"1e4f946c-64eb-414a-b76b-0c96bdc26bdd","block_type":"box","text":"standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":509,"box":{"x":170,"y":647,"width":649,"height":10}},{"id":"fff817ed-2aba-4032-8ad6-46940190f80f","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":509,"box":{"x":170,"y":660,"width":674,"height":10}},{"id":"e2a2fb4d-9a72-4933-9542-0e2cbd961c8d","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":509,"box":{"x":170,"y":673,"width":647,"height":10}},{"id":"46822a3c-fd1a-4e3a-9230-0dd7218fe294","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":509,"box":{"x":171,"y":686,"width":312,"height":7}},{"id":"5a2b9410-fc3a-4863-a9eb-865bda8c9532","block_type":"box","text":"15","page_number":509,"box":{"x":144,"y":699,"width":8,"height":5}},{"id":"81e27785-a05c-424c-9d07-0b37e2cf9252","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to doing","page_number":509,"box":{"x":170,"y":699,"width":694,"height":9}},{"id":"56987fe7-8f2f-4fa4-8642-05e7f2b6db45","block_type":"box","text":"so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":509,"box":{"x":170,"y":712,"width":651,"height":9}},{"id":"8ae02610-b23f-4cf3-b780-96eb7fad0cb4","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we ask","page_number":509,"box":{"x":170,"y":725,"width":698,"height":9}},{"id":"2addfd89-8b3d-4b3c-ba1c-ffdb9872da34","block_type":"box","text":"that companies highlight the metrics that are industry- or company-specific. We also recognize that companies may be","page_number":509,"box":{"x":170,"y":737,"width":703,"height":10}},{"id":"8a58833b-c1e4-4ae2-b852-11e3cf42769f","block_type":"box","text":"phasing in reporting over several years. We do not prescribe timelines regarding when companies should make","page_number":509,"box":{"x":170,"y":750,"width":661,"height":10}},{"id":"ebd51882-148f-4b2b-9f79-4eab0f370ee7","block_type":"box","text":"sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of their","page_number":509,"box":{"x":170,"y":763,"width":664,"height":10}},{"id":"87016c51-dfe9-483f-8f94-adc647969e58","block_type":"box","text":"shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make informed","page_number":509,"box":{"x":170,"y":776,"width":698,"height":10}},{"id":"cd475621-7c50-4dc8-a64d-ad84edcc8a28","block_type":"box","text":"voting decisions.","page_number":509,"box":{"x":170,"y":789,"width":98,"height":10}},{"id":"3612283c-e61c-4c94-bb7f-411b241fc175","block_type":"box","text":"16","page_number":509,"box":{"x":144,"y":802,"width":8,"height":5}},{"id":"9bfea4f5-4cc5-4cf9-b437-8ef36997df8b","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":509,"box":{"x":171,"y":802,"width":685,"height":10}},{"id":"fd98f028-76af-44b3-91c5-284c5ceb99b3","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in December","page_number":509,"box":{"x":170,"y":815,"width":708,"height":10}},{"id":"fec4b8d3-c9d2-452d-bdb9-cca6d4c1b684","block_type":"box","text":"2025.","page_number":509,"box":{"x":170,"y":828,"width":32,"height":8}},{"id":"abb06298-512d-4148-bfda-af62b11d2849","block_type":"box","text":"17","page_number":509,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"4195d467-5ee6-44eb-ad65-75a20273f875","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":509,"box":{"x":171,"y":841,"width":680,"height":9}},{"id":"0e38ae80-472a-4cbe-bd61-95b9b2736041","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":509,"box":{"x":171,"y":854,"width":706,"height":9}},{"id":"e2c991bc-f3f1-4990-98fe-5123af18efbb","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":509,"box":{"x":170,"y":867,"width":677,"height":9}},{"id":"b397e357-4599-4d14-9517-420bc7ed9b5e","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":509,"box":{"x":170,"y":880,"width":650,"height":9}},{"id":"10843543-a2a1-46d3-ae0e-8eb70f7165e3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":509,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"f377d917-0ba2-42df-8c8a-2480e59348e2","block_type":"box","text":"Climate and Decarbonization St","page_number":509,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"5b194705-2113-4856-aab9-1588e35d93f1","block_type":"box","text":"ewardship Guidelines |","page_number":509,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"fde6a07d-e612-4aee-9982-3ca141f4a77d","block_type":"box","text":"6","page_number":509,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"dce34d90-3f82-4e9e-b665-03d9d68d44a3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":509,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d5aa8ac4-e310-4321-9d60-bf31e8910b60","block_type":"box","text":"information, including how a company is working with its value chain to accelerate reductions","page_number":510,"box":{"x":184,"y":87,"width":694,"height":12}},{"id":"87a0da93-1aea-476f-8536-92de3c0bc7fd","block_type":"box","text":"in GHG intensity, provides useful insight to investors focused on investing in the low-carbon","page_number":510,"box":{"x":184,"y":102,"width":684,"height":13}},{"id":"db05949d-60de-477a-8ccf-f2ef552c77be","block_type":"box","text":"transition and understanding the impact of their investments on their decarbonization goals.","page_number":510,"box":{"x":183,"y":118,"width":678,"height":12}},{"id":"facbfb48-44b3-4299-8ffc-ce6aa12c5d85","block_type":"box","text":"18","page_number":510,"box":{"x":864,"y":118,"width":10,"height":6}},{"id":"a125b4c9-6e80-4217-aa16-58b23e1709e5","block_type":"box","text":"However, the team recognizes that companies have varying ability to influence the emissions","page_number":510,"box":{"x":184,"y":134,"width":696,"height":12}},{"id":"c07ff1ff-bbc5-4fda-8151-4e12e1718054","block_type":"box","text":"across the different parts of their value chain and, therefore, it is helpful when disclosures","page_number":510,"box":{"x":184,"y":149,"width":667,"height":12}},{"id":"40450cb3-79a4-4922-b641-845c71b62354","block_type":"box","text":"explain the implications for the achievement of their decarbonization targets. For some","page_number":510,"box":{"x":184,"y":165,"width":647,"height":12}},{"id":"e3e54d5f-4160-4c6f-abaa-006880c08c4e","block_type":"box","text":"companies that play an important role in the low-carbon transition, scope 3 may represent","page_number":510,"box":{"x":184,"y":180,"width":671,"height":12}},{"id":"f36bda26-185e-4906-8acc-db2f42dd98a5","block_type":"box","text":"their only significant source of GHG emissions in the value chain. While we do not believe","page_number":510,"box":{"x":183,"y":196,"width":672,"height":12}},{"id":"ba97315f-45de-4352-abd7-24b73d16f7e9","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control,","page_number":510,"box":{"x":184,"y":211,"width":693,"height":12}},{"id":"855fd892-1466-4464-b46a-f5cbd0bb6a50","block_type":"box","text":"where relevant, we look for disclosures on how the company approaches the low-carbon","page_number":510,"box":{"x":183,"y":227,"width":662,"height":12}},{"id":"4c12883d-492a-470b-a1c3-b4d8a6252964","block_type":"box","text":"transition in these cases. This may include plans and targets to grow businesses that","page_number":510,"box":{"x":183,"y":242,"width":636,"height":12}},{"id":"f064e4bf-ae4a-4cb3-9e45-1c7b6352830d","block_type":"box","text":"contribute to real world decarbonization, forward-looking capital or procurement allocation","page_number":510,"box":{"x":184,"y":258,"width":670,"height":12}},{"id":"27436124-84ea-43e8-89bb-adbadea9a2ca","block_type":"box","text":"plans to net-zero aligned activities or suppliers, and strategies to mitigate material transition","page_number":510,"box":{"x":184,"y":273,"width":684,"height":12}},{"id":"feea0360-da7d-484c-ab61-9ae2dde7a75e","block_type":"box","text":"risks.","page_number":510,"box":{"x":184,"y":289,"width":43,"height":9}},{"id":"1c1adf09-8b46-41b8-bc1e-5f3ea962a46a","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical","page_number":510,"box":{"x":150,"y":312,"width":729,"height":12}},{"id":"0ae729c4-58ca-4aca-bd0e-77c2632c84ae","block_type":"box","text":"risks – such as acute risks from extreme weather events or chronic risks from long-term shifts","page_number":510,"box":{"x":184,"y":327,"width":699,"height":12}},{"id":"a3dc0c09-5482-4d67-a8f3-64a7718ad928","block_type":"box","text":"in climate patterns – and how these risks could reasonably be expected to affect the","page_number":510,"box":{"x":184,"y":343,"width":629,"height":12}},{"id":"b9e504e6-58c2-427b-9a28-b8e609bf53b1","block_type":"box","text":"company’s operations, assets, or supply chains.","page_number":510,"box":{"x":184,"y":358,"width":361,"height":12}},{"id":"a714466b-6174-4b0e-a522-0306b1a78241","block_type":"box","text":"Transition plans","page_number":510,"box":{"x":150,"y":389,"width":134,"height":12}},{"id":"67610bb3-5b8b-4a3a-a167-f6cd62073d5a","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their","page_number":510,"box":{"x":150,"y":420,"width":698,"height":12}},{"id":"d3cdd66f-e6d9-4f84-84a3-d21d1ed86a93","block_type":"box","text":"low-carbon transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s","page_number":510,"box":{"x":150,"y":436,"width":701,"height":12}},{"id":"3c8f66da-96eb-429a-92d3-6900843a9dcd","block_type":"box","text":"targets, actions or resources for its transition towards a lower-carbon economy, including actions","page_number":510,"box":{"x":150,"y":451,"width":722,"height":12}},{"id":"a79be2bd-c823-4648-867f-066ff8af1eb7","block_type":"box","text":"such as reducing its greenhouse gas emissions” (see Appendix 1).","page_number":510,"box":{"x":150,"y":467,"width":494,"height":12}},{"id":"7c7e8476-e066-45d7-b5b3-2485dd64d91c","block_type":"box","text":"19","page_number":510,"box":{"x":646,"y":467,"width":11,"height":6}},{"id":"41eaecb2-2ef8-449e-8136-7b203f546777","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a","page_number":510,"box":{"x":150,"y":490,"width":685,"height":12}},{"id":"e2923bdc-f4cb-4a0a-a837-0ffcb3523f48","block_type":"box","text":"market to corporate transition plans.","page_number":510,"box":{"x":150,"y":506,"width":267,"height":12}},{"id":"00f3e5ed-a151-49e9-8f94-f23c58fe99c0","block_type":"box","text":"20","page_number":510,"box":{"x":418,"y":506,"width":12,"height":6}},{"id":"861f31e7-4009-442a-991b-b8cd83f20c99","block_type":"box","text":"Recent guidance from the ISSB on disclosures about","page_number":510,"box":{"x":430,"y":506,"width":404,"height":12}},{"id":"472cac9c-4127-4f9d-b23d-e76a67f0e31b","block_type":"box","text":"transition plans highlights the convergence of reporting approaches.","page_number":510,"box":{"x":150,"y":521,"width":509,"height":12}},{"id":"2f6cc79a-b7ae-4455-aff0-27f26413fad1","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these","page_number":510,"box":{"x":150,"y":544,"width":697,"height":12}},{"id":"a654859a-ff8e-4575-b7c1-6de08f3b8653","block_type":"box","text":"disclosures typically provide valuable insights that inform the dedicated team’s approach to","page_number":510,"box":{"x":150,"y":560,"width":679,"height":12}},{"id":"4aae31db-b779-4202-9168-3ab36be40a53","block_type":"box","text":"engaging and voting on matters related to climate and transition risks on behalf of in-scope funds","page_number":510,"box":{"x":150,"y":575,"width":725,"height":12}},{"id":"3055e09c-5814-4d3e-8327-68d3c3244404","block_type":"box","text":"and accounts.","page_number":510,"box":{"x":150,"y":591,"width":109,"height":9}},{"id":"1e041bc5-20a8-45e1-88bf-24a99e7e6249","block_type":"box","text":"18","page_number":510,"box":{"x":144,"y":725,"width":8,"height":5}},{"id":"ebfc91fb-5e5e-40fa-aeb0-6a91315cfbb5","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly traded","page_number":510,"box":{"x":170,"y":725,"width":707,"height":9}},{"id":"1024748b-d19a-4d8e-9798-d2917fba0291","block_type":"box","text":"companies into the role of enforcing emission reduction targets outside of their control. 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BlackRock views transition plans as a method for a company to","page_number":510,"box":{"x":171,"y":841,"width":697,"height":9}},{"id":"734823be-589a-440d-a1ab-9fabdf83925d","block_type":"box","text":"both internally assess and externally communicate its long-term strategy, ambition, objectives, and actions to create","page_number":510,"box":{"x":170,"y":854,"width":687,"height":9}},{"id":"fa83c2f7-0565-4f5b-aa03-89d51beb817d","block_type":"box","text":"financial value through the global transition towards a low-carbon economy. Across the landscape there remains","page_number":510,"box":{"x":170,"y":867,"width":666,"height":9}},{"id":"4958dba5-1576-4185-91f5-816d694befac","block_type":"box","text":"divergence on the objectives of such plans and the details they should contain. 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The Guidelines consider the whole","page_number":511,"box":{"x":184,"y":203,"width":692,"height":12}},{"id":"56bce775-6874-4c03-822b-6c6ec879d301","block_type":"box","text":"board to have responsibility for oversight of the company’s long-term strategy, including those","page_number":511,"box":{"x":184,"y":219,"width":700,"height":12}},{"id":"d64c9ed1-991a-4bd0-8377-2e919595c432","block_type":"box","text":"aspects related to the transition to a low-carbon economy.","page_number":511,"box":{"x":184,"y":234,"width":435,"height":12}},{"id":"c9331e06-26d1-4f2c-8969-c8139383bc0b","block_type":"box","text":"• Management has established a robust low-carbon transition framework and long-term","page_number":511,"box":{"x":150,"y":258,"width":675,"height":12}},{"id":"42ffa74d-9b76-4824-96dd-69604808cab4","block_type":"box","text":"strategy, with clear accountability for delivery by senior executives.","page_number":511,"box":{"x":184,"y":273,"width":500,"height":12}},{"id":"339c9d30-574a-4dc3-86de-ac1be9535be6","block_type":"box","text":"• The capital management strategy explains how the company allocates investments to","page_number":511,"box":{"x":150,"y":296,"width":675,"height":12}},{"id":"45aa42f2-4226-4105-860f-7e8b3b3ae6fe","block_type":"box","text":"(traditional and next generation) business lines and innovation, and returns cash to","page_number":511,"box":{"x":184,"y":312,"width":619,"height":12}},{"id":"e7798d15-0365-4c18-8d9e-49394cf23f04","block_type":"box","text":"shareholders, consistent with the company’s stated low-carbon transition strategy.","page_number":511,"box":{"x":184,"y":327,"width":614,"height":12}},{"id":"b878b488-1222-4727-be2c-cfbeeb120213","block_type":"box","text":"• The climate and low-carbon transition risks most likely to significantly impact the business are","page_number":511,"box":{"x":150,"y":351,"width":733,"height":12}},{"id":"6130381f-9f6d-4972-85fb-54e636c5a503","block_type":"box","text":"integrated into the company’s enterprise risk management processes and reporting.","page_number":511,"box":{"x":184,"y":366,"width":627,"height":12}},{"id":"b8a7da6a-8111-4706-ab76-5d33fc40f5b4","block_type":"box","text":"• The company has set scope 1 and 2 GHG emissions reduction targets, science-based and","page_number":511,"box":{"x":150,"y":389,"width":712,"height":12}},{"id":"5f10c859-1f2b-420f-ac4e-3dddb3bafbe7","block_type":"box","text":"independently verified where possible, against a baseline, that are consistent with the","page_number":511,"box":{"x":184,"y":405,"width":639,"height":12}},{"id":"c2b54009-4e0a-4bb9-8ca8-e17072036c09","block_type":"box","text":"ambition to limit average global temperature rise to no more than 1.5°C above pre-industrial","page_number":511,"box":{"x":184,"y":420,"width":685,"height":12}},{"id":"297e4163-1f5f-4b2f-9037-2e821a2bda6c","block_type":"box","text":"levels.","page_number":511,"box":{"x":184,"y":436,"width":51,"height":9}},{"id":"9d5ba75e-ef2f-4208-bd7e-23f6dd07f454","block_type":"box","text":"• There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets","page_number":511,"box":{"x":150,"y":459,"width":728,"height":12}},{"id":"d9f857ef-6602-4f4d-98a6-3ed996cf3b58","block_type":"box","text":"over time and its long-term low-carbon transition strategy.","page_number":511,"box":{"x":184,"y":475,"width":432,"height":12}},{"id":"ade50887-d92b-4ec2-88e4-a0486d82cbe6","block_type":"box","text":"• The company is monitoring its most significant scope 3 emissions and disclosing these where","page_number":511,"box":{"x":150,"y":498,"width":733,"height":12}},{"id":"8194198a-8aaa-4d50-960c-abf5769de85c","block_type":"box","text":"it is confident in the data. Given forthcoming regulatory requirements in certain jurisdictions,","page_number":511,"box":{"x":184,"y":513,"width":684,"height":12}},{"id":"3328c33e-c37a-445d-86b4-35298c04d61d","block_type":"box","text":"some companies are voluntarily disclosing scope 3 emissions reductions targets and plans,","page_number":511,"box":{"x":184,"y":529,"width":683,"height":12}},{"id":"2ec3b14a-aab6-4a8d-a4cc-e9f9c388e73b","block_type":"box","text":"setting out how they are working on decarbonization with the different constituents in their","page_number":511,"box":{"x":184,"y":544,"width":670,"height":12}},{"id":"2d70df2c-b6a2-49c5-adb0-98be90cbf214","block_type":"box","text":"value chain.","page_number":511,"box":{"x":183,"y":560,"width":94,"height":9}},{"id":"a9c784e5-b1f4-4fbd-bff7-18fcc95e1387","block_type":"box","text":"21","page_number":511,"box":{"x":278,"y":560,"width":10,"height":6}},{"id":"1eb51878-9e66-4ee6-b001-4e23f1e4fc46","block_type":"box","text":"• The company’s governance and oversight processes for managing material risks associated","page_number":511,"box":{"x":150,"y":583,"width":723,"height":12}},{"id":"21382438-5c95-4422-8b79-059fc5623cc5","block_type":"box","text":"with corporate political activities including applicable policies and procedures where","page_number":511,"box":{"x":183,"y":599,"width":624,"height":12}},{"id":"da73e2a5-4eb9-4239-b90e-8d16eb3d1e4f","block_type":"box","text":"relevant.","page_number":511,"box":{"x":184,"y":614,"width":62,"height":10}},{"id":"77a8f300-e772-4c0e-9674-bc338029aa0c","block_type":"box","text":"22","page_number":511,"box":{"x":248,"y":614,"width":11,"height":6}},{"id":"c3fd6737-e7c5-4773-bed3-b7f7e4069ae0","block_type":"box","text":"The dedicated team looks for public policy engagement to be consistent with a","page_number":511,"box":{"x":260,"y":614,"width":592,"height":12}},{"id":"80457ea5-85da-42e1-8347-b1573c21bcb3","block_type":"box","text":"company’s stated strategic policy objectives, including those related to the low-carbon","page_number":511,"box":{"x":184,"y":630,"width":642,"height":12}},{"id":"f8957ea3-d3f4-47f9-8c84-8245fb697417","block_type":"box","text":"transition.","page_number":511,"box":{"x":183,"y":645,"width":78,"height":10}},{"id":"d8208f75-1650-475a-b844-8e3a4b37b419","block_type":"box","text":"21","page_number":511,"box":{"x":143,"y":789,"width":8,"height":5}},{"id":"39d14ebe-e1fa-48dc-ac47-00bd023d2eaa","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":511,"box":{"x":171,"y":789,"width":685,"height":10}},{"id":"69a46d18-344a-4409-ad7f-368d6bb97ed1","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":511,"box":{"x":170,"y":802,"width":692,"height":10}},{"id":"51774fc5-309c-4757-879a-907ddc79338c","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":511,"box":{"x":170,"y":815,"width":679,"height":10}},{"id":"4d3c0c6a-ac32-4a07-92f3-fc829efed682","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":511,"box":{"x":170,"y":828,"width":682,"height":10}},{"id":"27a2aa29-16b5-414b-acad-58986979a9de","block_type":"box","text":"offer the most significant GHG reduction opportunities and are most relevant to the company’s business goals.” Website","page_number":511,"box":{"x":170,"y":841,"width":712,"height":9}},{"id":"e8cba1d2-8343-4d69-88ec-8e3964b8f8df","block_type":"box","text":"accessed in December 2025.","page_number":511,"box":{"x":170,"y":854,"width":173,"height":7}},{"id":"823d73ff-d311-4958-8895-5f0e4fff31b8","block_type":"box","text":"22","page_number":511,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"96ab2d0b-9f8c-44d9-836e-ad03cda266cd","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including trade","page_number":511,"box":{"x":170,"y":867,"width":694,"height":9}},{"id":"ad4fe4be-d872-4145-9c15-5db446b8fcac","block_type":"box","text":"association memberships), and corporate political contributions.","page_number":511,"box":{"x":170,"y":880,"width":378,"height":9}},{"id":"d872a785-9c1c-455f-a3f8-3da2620bfa6e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":511,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"cccdc2e0-cc45-45d7-aee0-3948ae41c506","block_type":"box","text":"Climate and Decarbonization St","page_number":511,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"eb0b8be3-cadf-44ab-a924-9d78c4eeeb4b","block_type":"box","text":"ewardship Guidelines |","page_number":511,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"0f7c4afc-ac1e-4f02-b390-bb80aa9c9394","block_type":"box","text":"8","page_number":511,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"acce0d8d-6c08-41f1-a9d7-5f352ef2528f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":511,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"26a7057f-2804-4ec3-9c63-411e90591cbc","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":512,"box":{"x":118,"y":87,"width":424,"height":12}},{"id":"d3dfd0ae-21d5-4e5c-b11a-21024efc939e","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors","page_number":512,"box":{"x":117,"y":118,"width":726,"height":12}},{"id":"d6366d4f-b70e-4096-9091-7683b71e1973","block_type":"box","text":"standing for election where, in its assessment based on company disclosures and engagement, a","page_number":512,"box":{"x":116,"y":134,"width":729,"height":12}},{"id":"39783c29-02c3-49d8-8ce8-e573a282a8d2","block_type":"box","text":"company is executing on its commitment to align with the transition to a low-carbon economy, as","page_number":512,"box":{"x":116,"y":149,"width":722,"height":12}},{"id":"5a66e5c8-08df-4e81-a65a-ac49ad71bf15","block_type":"box","text":"defined above. Where the dedicated team determines this is not the case, it may vote against the","page_number":512,"box":{"x":116,"y":165,"width":727,"height":12}},{"id":"eea41b66-f132-4004-9df7-52b158312c11","block_type":"box","text":"election of one or more directors who the team identifies as having the most responsibility for the issue.","page_number":512,"box":{"x":116,"y":180,"width":772,"height":12}},{"id":"2861c0d5-8a7e-4e7c-b364-356763aa1445","block_type":"box","text":"The directors most likely to be in focus are the chair of the board committee with low-carbon transition,","page_number":512,"box":{"x":116,"y":196,"width":765,"height":12}},{"id":"5e4a9b4f-490d-4ea4-83ab-5b21d36573a1","block_type":"box","text":"climate or sustainability risk oversight responsibilities, other members of the relevant committee, the","page_number":512,"box":{"x":116,"y":211,"width":746,"height":12}},{"id":"492d58f7-6a91-4d77-9b42-4fad753ff483","block_type":"box","text":"lead independent director or the non-executive chair of the board. In certain markets, the team may","page_number":512,"box":{"x":117,"y":227,"width":741,"height":12}},{"id":"0994a4a1-5c6b-45a2-b6a6-5b3f86b5b250","block_type":"box","text":"withhold support for the discharge of the supervisory board or equivalent and/or board reports.","page_number":512,"box":{"x":116,"y":242,"width":699,"height":12}},{"id":"d1328bb9-4bc9-450d-b1d8-d6d6f58e3aa8","block_type":"box","text":"23","page_number":512,"box":{"x":817,"y":242,"width":11,"height":6}},{"id":"5138d094-0262-4f11-b508-607a650bcd2e","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year,","page_number":512,"box":{"x":116,"y":273,"width":754,"height":12}},{"id":"9e65698c-78a6-496e-9f16-6a1360ed7072","block_type":"box","text":"and the company has not subsequently made progress towards aligning with the transition to a","page_number":512,"box":{"x":116,"y":289,"width":709,"height":12}},{"id":"eaa5abba-b56d-4ca6-a78d-fbaae2c858e7","block_type":"box","text":"low-carbon economy, the team may escalate by not supporting the re-election of additional responsible","page_number":512,"box":{"x":117,"y":304,"width":769,"height":12}},{"id":"204f3cc4-1f2b-4b32-b68c-77da2875aac2","block_type":"box","text":"directors.","page_number":512,"box":{"x":116,"y":320,"width":67,"height":9}},{"id":"d83f56fc-83a7-43ec-8199-37d556f491f3","block_type":"box","text":"24","page_number":512,"box":{"x":185,"y":320,"width":12,"height":6}},{"id":"8930b34a-6302-438c-b4af-4f29207ebcad","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":512,"box":{"x":116,"y":351,"width":582,"height":12}},{"id":"eaa60ddf-0fcc-432c-a53a-bc008f6c0928","block_type":"box","text":"In certain markets, company management may submit proposals – commonly referred to as “Say on","page_number":512,"box":{"x":117,"y":382,"width":750,"height":12}},{"id":"c6c6c027-5345-489b-8e45-f5b1300113bb","block_type":"box","text":"Climate” – seeking shareholder approval of their climate action plans or progress reports. The","page_number":512,"box":{"x":117,"y":397,"width":700,"height":12}},{"id":"64161b41-46a1-41bc-8f5e-6842d8d21521","block_type":"box","text":"Guidelines consider these proposals as a valuable governance mechanism that can enhance","page_number":512,"box":{"x":117,"y":413,"width":696,"height":12}},{"id":"d83f98a7-fee3-48ac-83ab-664c1e663ab1","block_type":"box","text":"transparency, accountability, and investors’ understanding of a company’s climate strategy. The","page_number":512,"box":{"x":116,"y":428,"width":716,"height":12}},{"id":"3dd45e71-03dc-4f8f-90d0-d5e70845931a","block_type":"box","text":"dedicated team generally supports management’s climate strategy proposal if, in the team’s","page_number":512,"box":{"x":116,"y":444,"width":687,"height":12}},{"id":"dcbbf763-4bd1-4cba-8009-4958f37a5272","block_type":"box","text":"assessment based on these Guidelines, the strategy is aligned with the low-carbon transition. Similarly,","page_number":512,"box":{"x":116,"y":459,"width":772,"height":12}},{"id":"7b094196-d303-43b1-846c-a7be500a2030","block_type":"box","text":"the dedicated team generally supports management’s proposal on a progress report if the company","page_number":512,"box":{"x":116,"y":475,"width":745,"height":12}},{"id":"9d682c40-1e80-43f9-babc-7ccfbc9f3517","block_type":"box","text":"has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":512,"box":{"x":117,"y":490,"width":770,"height":12}},{"id":"04d5550d-94ad-4658-9aab-fa2e12978daa","block_type":"box","text":"transition plan and targets.","page_number":512,"box":{"x":116,"y":506,"width":203,"height":12}},{"id":"1ada7c7c-6d20-4993-91ca-d93079c12e86","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":512,"box":{"x":117,"y":537,"width":551,"height":12}},{"id":"b8c6ddba-9db9-4bc5-8088-1e69da4f7116","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder","page_number":512,"box":{"x":117,"y":568,"width":717,"height":12}},{"id":"37f7cb26-6347-423e-a605-1d55651445a2","block_type":"box","text":"meeting, as long as certain requirements are met. Shareholder proposals span a wide range of topics","page_number":512,"box":{"x":117,"y":583,"width":758,"height":12}},{"id":"81b2cbbd-9b7c-4629-9c5b-2cb8c75547ff","block_type":"box","text":"and have varying degrees of relevance for companies across sectors, locations, and business models.","page_number":512,"box":{"x":116,"y":599,"width":766,"height":12}},{"id":"9d390053-dc66-4f8c-843c-729bfd19db0d","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while","page_number":512,"box":{"x":117,"y":630,"width":687,"height":12}},{"id":"326364ba-1788-405b-9bb0-8b75e68b991a","block_type":"box","text":"considering the company’s individual circumstances. When the dedicated team votes in support of a","page_number":512,"box":{"x":116,"y":645,"width":748,"height":12}},{"id":"5096ca97-a62e-4607-880c-29a9477358d8","block_type":"box","text":"proposal, it is not necessarily endorsing every element of the proposal or the reasoning, objectives, or","page_number":512,"box":{"x":117,"y":661,"width":755,"height":12}},{"id":"712c4bc7-48b3-4f27-9206-137d3374c9f0","block_type":"box","text":"supporting statement of the proponent.","page_number":512,"box":{"x":116,"y":676,"width":287,"height":12}},{"id":"7ee50860-2fc2-4dbb-83f2-7870297326a5","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s","page_number":512,"box":{"x":117,"y":707,"width":746,"height":12}},{"id":"4c8598fd-630e-4c49-97ff-04e87f47afd1","block_type":"box","text":"low-carbon transition strategy and targets. The dedicated team assesses the implications for, and the","page_number":512,"box":{"x":117,"y":723,"width":751,"height":12}},{"id":"40a84487-1c3c-4a94-8738-768b95aa6477","block_type":"box","text":"23","page_number":512,"box":{"x":143,"y":815,"width":9,"height":5}},{"id":"2f46ef42-67c9-4072-bc6b-dd19af856fb9","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":512,"box":{"x":171,"y":815,"width":661,"height":10}},{"id":"79e8d28b-4fcf-4235-9f0d-a62d0f78ba53","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":512,"box":{"x":170,"y":828,"width":643,"height":10}},{"id":"7ad34fbf-3f42-4093-9d94-0f78a0d2da2a","block_type":"box","text":"24","page_number":512,"box":{"x":143,"y":841,"width":9,"height":5}},{"id":"4639b1ee-33cf-4f25-8187-fbd4ca5b83af","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally director","page_number":512,"box":{"x":170,"y":841,"width":703,"height":9}},{"id":"9ee4a753-0272-4962-8c3e-36113f16408d","block_type":"box","text":"elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using the media","page_number":512,"box":{"x":170,"y":854,"width":702,"height":9}},{"id":"78326be9-380e-433e-8bcc-55bdb179366a","block_type":"box","text":"to amplify concerns as appropriate courses of action. The dedicated team will continue to take a constructive, long-term","page_number":512,"box":{"x":170,"y":867,"width":708,"height":9}},{"id":"f440a4bd-71d0-4ef1-87cf-62d642bf5965","block_type":"box","text":"focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":512,"box":{"x":170,"y":880,"width":530,"height":9}},{"id":"a274f55c-ebd6-4b26-b51d-2bc8068f1f08","block_type":"box","text":"BlackRock Investment Stewardship","page_number":512,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"d0999790-2e53-4d5b-9f3a-a1391592eb72","block_type":"box","text":"Climate and Decarbonization St","page_number":512,"box":{"x":504,"y":909,"width":213,"height":9}},{"id":"0db7927c-0efc-4ae1-a07e-830ba4c94aa0","block_type":"box","text":"ewardship Guidelines |","page_number":512,"box":{"x":717,"y":909,"width":152,"height":12}},{"id":"9c45328c-c979-4b7b-a9b9-8a3afc22dceb","block_type":"box","text":"9","page_number":512,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"1cd99fd6-e64b-460a-a733-c751d6356fba","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":512,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ea8bd7b1-f5e3-41bf-874a-87054d60113a","block_type":"box","text":"relevance to, the company’s stated low-carbon transition strategy and targets. Under the Guidelines,","page_number":513,"box":{"x":117,"y":87,"width":749,"height":12}},{"id":"843d22ae-bc47-46af-9991-f698ec0625a7","block_type":"box","text":"the team may support shareholder proposals that, for example, ask a company to:","page_number":513,"box":{"x":116,"y":102,"width":615,"height":13}},{"id":"96d5f631-cc51-4dd4-ae0c-6d7ead09a290","block_type":"box","text":"• Publish a business plan, and related disclosures, consistent with the ambition to limit average","page_number":513,"box":{"x":150,"y":135,"width":732,"height":11}},{"id":"7ab6b287-6c96-4a1c-9ab9-e89f95136b09","block_type":"box","text":"global temperature rise to no more than 1.5°C above pre-industrial levels","page_number":513,"box":{"x":184,"y":150,"width":546,"height":12}},{"id":"b7162138-7950-441f-8927-943576dd9509","block_type":"box","text":"• Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets","page_number":513,"box":{"x":150,"y":173,"width":704,"height":13}},{"id":"e7d3e71b-6904-42cc-9ad1-b36de7f4e608","block_type":"box","text":"align with, a long-term goal of the company achieving net zero GHG emissions by 2050","page_number":513,"box":{"x":184,"y":189,"width":653,"height":12}},{"id":"a8f9cdb3-3907-45a4-971c-7b120d3d3e2a","block_type":"box","text":"• Disclose the categories of scope 3 GHG emissions most significant to a company’s business","page_number":513,"box":{"x":150,"y":213,"width":726,"height":12}},{"id":"6de9b097-9860-48c2-b778-919a3e890074","block_type":"box","text":"model","page_number":513,"box":{"x":184,"y":228,"width":50,"height":10}},{"id":"f9ac5358-77a8-485b-b1de-0c97c3e016b1","block_type":"box","text":"• Improve voluntary disclosures on the alignment of a company’s climate-related corporate","page_number":513,"box":{"x":150,"y":252,"width":698,"height":12}},{"id":"c4662b95-2e13-4ca0-8670-2b251a6b3261","block_type":"box","text":"political activities with its strategic policy positions, where existing disclosure is insufficient","page_number":513,"box":{"x":184,"y":267,"width":666,"height":12}},{"id":"327a9b4c-7859-429a-8cbe-7c6e6e62ad95","block_type":"box","text":"25","page_number":513,"box":{"x":850,"y":267,"width":11,"height":7}},{"id":"5a7f9297-6a44-4142-9e7d-7281d943f844","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or","page_number":513,"box":{"x":116,"y":299,"width":687,"height":12}},{"id":"9103c9a8-5f4b-4f28-b108-bac1fd3a86af","block_type":"box","text":"management decision-making or direct specific business or strategic decisions.","page_number":513,"box":{"x":117,"y":315,"width":593,"height":12}},{"id":"039e89bf-95a4-4828-a855-bcff4a17ea70","block_type":"box","text":"Related matters","page_number":513,"box":{"x":438,"y":355,"width":129,"height":9}},{"id":"96c098dd-8378-489a-b8ce-eb5808326606","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could","page_number":513,"box":{"x":116,"y":387,"width":741,"height":12}},{"id":"96c6b58f-49d5-4df7-8e09-d2ad6537af0f","block_type":"box","text":"address matters relevant to the transition to a low-carbon economy. Under these Guidelines, the","page_number":513,"box":{"x":116,"y":402,"width":720,"height":12}},{"id":"727954c8-32ad-4cae-a3ee-2278a54b2105","block_type":"box","text":"dedicated team engages, where appropriate, to enhance its understanding of a company’s approach.","page_number":513,"box":{"x":116,"y":417,"width":757,"height":13}},{"id":"a9997c99-f730-46fe-ab21-4f7c3d330a33","block_type":"box","text":"Generally, voting on these matters would be covered by BIS’ Benchmark Policies.","page_number":513,"box":{"x":117,"y":433,"width":612,"height":12}},{"id":"f2d36df1-ca64-4e63-aab3-30f4b129b725","block_type":"box","text":"Executive compensation","page_number":513,"box":{"x":116,"y":465,"width":202,"height":12}},{"id":"fd4cf4aa-55a9-4ceb-827a-78c39f25f375","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that","page_number":513,"box":{"x":116,"y":497,"width":681,"height":12}},{"id":"d2abdf51-6972-445d-8463-6aeea2a78d2a","block_type":"box","text":"incentivizes and rewards executives appropriately. Some companies, in light of their long-term","page_number":513,"box":{"x":117,"y":512,"width":703,"height":12}},{"id":"838e7e24-39ad-487f-be2e-d9040d77791c","block_type":"box","text":"strategy, may decide to include relevant GHG emissions reduction targets or low-carbon transition","page_number":513,"box":{"x":116,"y":528,"width":734,"height":12}},{"id":"472bc6fc-9e41-4f5b-b069-249640856635","block_type":"box","text":"related metrics in their incentive plans. In such cases, the dedicated team would engage to understand","page_number":513,"box":{"x":117,"y":543,"width":767,"height":12}},{"id":"936240cb-1f02-49fe-b5b1-1fca0483c062","block_type":"box","text":"the alignment between those metrics and the company’s stated climate strategy. Clear disclosure also","page_number":513,"box":{"x":116,"y":559,"width":763,"height":12}},{"id":"10fc01d4-0cbe-4a7a-938a-6ff9ca015c49","block_type":"box","text":"helps investors assess whether pay structures are consistent with long-term climate strategy and risk","page_number":513,"box":{"x":117,"y":574,"width":754,"height":12}},{"id":"c02c05c5-098e-4350-b401-90e9723c5fb7","block_type":"box","text":"management.","page_number":513,"box":{"x":117,"y":590,"width":106,"height":12}},{"id":"2e21de8f-10f4-45f5-bed7-96a9a9a8eb6c","block_type":"box","text":"Auditors and audit-related issues","page_number":513,"box":{"x":116,"y":622,"width":271,"height":9}},{"id":"52cb392c-6d6a-423b-80b3-0e78206485d8","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the","page_number":513,"box":{"x":117,"y":654,"width":742,"height":11}},{"id":"7cba4061-06ec-4225-8d2e-2cf3c30a9fbe","block_type":"box","text":"dedicated team is interested in understanding whether the company considers and, if relevant,","page_number":513,"box":{"x":116,"y":669,"width":700,"height":12}},{"id":"1d2661d2-c4b9-43a0-9a2c-733959b72da3","block_type":"box","text":"quantifies, and accounts for material climate-related risks in its financial statements, including if the","page_number":513,"box":{"x":116,"y":684,"width":734,"height":13}},{"id":"72ba946c-7a3b-4739-9b06-ad76690a44de","block_type":"box","text":"company explains such risks within the context of its audit report. The team notes that assurance of","page_number":513,"box":{"x":116,"y":700,"width":740,"height":12}},{"id":"f9805978-d5fc-4ccd-aa95-248e50cfc436","block_type":"box","text":"corporate disclosures related to climate risk and the transition to a low-carbon economy is still nascent.","page_number":513,"box":{"x":116,"y":716,"width":763,"height":12}},{"id":"45172f63-2060-48e2-8c2f-eb448dd1cc22","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":513,"box":{"x":116,"y":747,"width":504,"height":12}},{"id":"d0dda399-553e-4888-91a4-d3ede28e9e5e","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on","page_number":513,"box":{"x":116,"y":779,"width":747,"height":12}},{"id":"e8e474d7-832a-4ad1-8e5a-2a698d13751d","block_type":"box","text":"climate-related factors under these Guidelines where a transaction may significantly alter a company’s","page_number":513,"box":{"x":116,"y":795,"width":759,"height":12}},{"id":"1a037918-dd69-40e1-948e-a5cc1865ad91","block_type":"box","text":"climate strategy or a shareholder activist has proposed governance, strategic or operational changes","page_number":513,"box":{"x":116,"y":810,"width":749,"height":12}},{"id":"7b43b1d1-25da-4582-b78a-8bca65095eb5","block_type":"box","text":"that may impact its climate strategy. The dedicated team does not promote changes in corporate","page_number":513,"box":{"x":116,"y":826,"width":723,"height":12}},{"id":"229c5644-4557-47e5-8245-8189c398e438","block_type":"box","text":"control or engage in shareholder activism.","page_number":513,"box":{"x":116,"y":841,"width":317,"height":12}},{"id":"9e7ce375-5173-4554-90f1-3941b3605b83","block_type":"box","text":"25","page_number":513,"box":{"x":143,"y":866,"width":9,"height":5}},{"id":"6ce3220f-a3ca-47af-91d3-910918a4488e","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including trade","page_number":513,"box":{"x":170,"y":866,"width":694,"height":10}},{"id":"6b6256b1-fda4-4c1f-aefd-11c916d9ef40","block_type":"box","text":"association memberships), and corporate political contributions.","page_number":513,"box":{"x":170,"y":879,"width":378,"height":10}},{"id":"46b81e10-a64a-44c8-8fd6-98b820fb3537","block_type":"box","text":"BlackRock Investment Stewardship","page_number":513,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"ecf4f1dd-cc3c-4edd-9eb2-48421ee8453d","block_type":"box","text":"Climate and Decarbonization St","page_number":513,"box":{"x":496,"y":909,"width":212,"height":9}},{"id":"6c5aa742-dd05-49a6-96c2-2d5c0f571790","block_type":"box","text":"ewardship Guidelines |","page_number":513,"box":{"x":709,"y":909,"width":152,"height":12}},{"id":"23e0aceb-df12-4665-aaf4-c7ae85a23ae1","block_type":"box","text":"10","page_number":513,"box":{"x":867,"y":909,"width":16,"height":9}},{"id":"08518224-5b91-4f69-947a-3fc991cf4b1a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":513,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"23e50b72-9820-4de7-9d63-69e155008bc5","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":514,"box":{"x":117,"y":87,"width":559,"height":12}},{"id":"009e7aef-feb1-4b86-a759-38b0884dbbfe","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other","page_number":514,"box":{"x":117,"y":118,"width":734,"height":12}},{"id":"401a96d8-3831-4cee-98d9-4e275142d0db","block_type":"box","text":"material sustainability-related risks and opportunities that may be relevant to a company’s business","page_number":514,"box":{"x":117,"y":134,"width":741,"height":12}},{"id":"39000023-38dd-472a-b963-4b8b26930f96","block_type":"box","text":"model and long-term financial performance. These include a company’s impacts or dependencies on","page_number":514,"box":{"x":117,"y":149,"width":752,"height":12}},{"id":"725b4b34-9514-4980-8f1a-718dc2edf0b2","block_type":"box","text":"natural capital and key stakeholders.","page_number":514,"box":{"x":117,"y":165,"width":270,"height":12}},{"id":"7605fd6c-673d-4b11-9d29-2b62c30df7e6","block_type":"box","text":"26","page_number":514,"box":{"x":389,"y":165,"width":12,"height":6}},{"id":"fcb0a0ee-a7c8-4135-8795-39295c6c5d24","block_type":"box","text":"In the context of these Guidelines, the dedicated team may","page_number":514,"box":{"x":401,"y":165,"width":448,"height":12}},{"id":"0fae91a8-11a4-4a4a-9ed1-676305868250","block_type":"box","text":"engage companies to better understand how they are managing the impact on people (e.g.,","page_number":514,"box":{"x":116,"y":180,"width":686,"height":12}},{"id":"e56a4ffa-74ca-48c2-80b5-7cc76e128d43","block_type":"box","text":"employees, suppliers, customers and communities) of any strategic or operational changes they are","page_number":514,"box":{"x":116,"y":196,"width":747,"height":12}},{"id":"6cad8470-47de-4909-a06f-36315fb92d48","block_type":"box","text":"making in relation to their transition to a low-carbon economy. Similarly, the team may engage","page_number":514,"box":{"x":117,"y":211,"width":702,"height":12}},{"id":"0478a094-ce36-419c-a21f-124635b6dfac","block_type":"box","text":"companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":514,"box":{"x":116,"y":227,"width":729,"height":11}},{"id":"07fe9070-0cef-475b-8b9a-f2ac02991569","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":514,"box":{"x":116,"y":242,"width":722,"height":12}},{"id":"06b27247-2ee4-4117-bde1-a1b8c6c7edf0","block_type":"box","text":"26","page_number":514,"box":{"x":143,"y":867,"width":9,"height":5}},{"id":"1aad01a5-109e-4498-b01a-8a855e1aa0d1","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":514,"box":{"x":171,"y":867,"width":669,"height":9}},{"id":"4ad51043-c4d5-405f-938e-3bfd0670fc6b","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":514,"box":{"x":170,"y":880,"width":387,"height":9}},{"id":"39ee4755-b8a5-49f2-b258-f06752aa25bb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":514,"box":{"x":117,"y":909,"width":277,"height":12}},{"id":"4c73ee57-2350-4f60-b8ba-901fe8c02045","block_type":"box","text":"Climate and Decarbonization St","page_number":514,"box":{"x":496,"y":909,"width":212,"height":9}},{"id":"426a9be9-5e80-4845-baba-8fdad73002b3","block_type":"box","text":"ewardship Guidelines |","page_number":514,"box":{"x":709,"y":909,"width":152,"height":12}},{"id":"314ba769-8cd3-4932-810d-068e177194d0","block_type":"box","text":"11","page_number":514,"box":{"x":867,"y":909,"width":14,"height":9}},{"id":"2901f6bf-3c33-490f-9062-eee70ade369d","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":514,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3db27b43-0443-45e9-b3be-86456c6b4428","block_type":"box","text":"Appendix 1","page_number":515,"box":{"x":116,"y":87,"width":95,"height":12}},{"id":"bf14da27-5fd0-428b-938a-71ac34fc7a59","block_type":"box","text":"Terminology","page_number":515,"box":{"x":449,"y":115,"width":106,"height":12}},{"id":"d8a753c0-b5da-46d3-bc4a-e8af6c35aba3","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":515,"box":{"x":116,"y":142,"width":593,"height":12}},{"id":"4123453e-43fe-4bc2-9db5-07e4990d09c2","block_type":"box","text":"Climate risk","page_number":515,"box":{"x":116,"y":169,"width":95,"height":9}},{"id":"66f4e6a0-c6ae-460d-8070-12dd1217ea6c","block_type":"box","text":": Includes physical risk, the increased risk to companies’ assets and activities caused by","page_number":515,"box":{"x":213,"y":169,"width":658,"height":12}},{"id":"a7400876-42cd-4ff8-bed2-deaa84a69ff2","block_type":"box","text":"the direct impact of changing weather patterns and natural catastrophes, and transition risk, the impact","page_number":515,"box":{"x":116,"y":183,"width":768,"height":12}},{"id":"ab4ba182-d1fb-4dc7-8f7b-e31a1b7494e3","block_type":"box","text":"of the transition to a low-carbon economy on a company’s long-term profitability.","page_number":515,"box":{"x":116,"y":197,"width":601,"height":12}},{"id":"62eea284-5179-49d6-a140-1d53edbff3cf","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”)","page_number":515,"box":{"x":116,"y":224,"width":492,"height":12}},{"id":"741c2a10-ceb4-4213-9ec2-66c5367e1e33","block_type":"box","text":": The global economic shift toward","page_number":515,"box":{"x":610,"y":224,"width":259,"height":12}},{"id":"fb8dc7bf-36ec-48f6-843c-ed4cf277a6c1","block_type":"box","text":"lower emissions across many sectors and business models. 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Please see each Fund’s","page_number":518,"box":{"x":478,"y":450,"width":400,"height":13}},{"id":"8f5f0571-0b44-4261-9635-10330cb76223","block_type":"box","text":"prospectuses (the “Prospectus”) and the “Investment Objective and","page_number":518,"box":{"x":45,"y":465,"width":468,"height":13}},{"id":"8561bace-f261-4bcd-b551-dd78e899ad24","block_type":"box","text":"Policies,” “Investment Objectives and Policies” or “Investment","page_number":518,"box":{"x":518,"y":465,"width":435,"height":13}},{"id":"687eb802-f494-4e99-97c7-dda0438b4b33","block_type":"box","text":"Strategies and Risks of the Fund” as applicable, section of Part I of this SAI for further information about each Fund’s investment","page_number":518,"box":{"x":46,"y":481,"width":897,"height":13}},{"id":"71181383-e096-4caa-bb58-af6bb9a96546","block_type":"box","text":"policies and risks. Information contained in this section about","page_number":518,"box":{"x":45,"y":496,"width":428,"height":13}},{"id":"b5bcb96a-ba11-4dbc-93f9-980e159fc59c","block_type":"box","text":"the risks and considerations associated with a Fund’s investments","page_number":518,"box":{"x":478,"y":496,"width":453,"height":10}},{"id":"88aea757-d470-471a-ad1b-988d9aaf19df","block_type":"box","text":"and/or investment strategies applies only to those Funds specifically identified in Part I of this SAI as making each type of","page_number":518,"box":{"x":46,"y":512,"width":838,"height":13}},{"id":"a7b9bd10-8b1f-4680-a944-1862e7781876","block_type":"box","text":"investment or using each investment strategy (each, a “Cov","page_number":518,"box":{"x":45,"y":527,"width":410,"height":13}},{"id":"f50603d0-0e33-4124-96cd-dffe38a20f89","block_type":"box","text":"ered Fund”). Information that does not apply to a Covered Fund does","page_number":518,"box":{"x":456,"y":527,"width":485,"height":13}},{"id":"f8f6212f-e7ee-428e-b5e8-8cf8d1d905bc","block_type":"box","text":"not form a part of that Covered Fund’s SAI and should not be relied upon by investors in that Covered Fund.","page_number":518,"box":{"x":45,"y":543,"width":758,"height":13}},{"id":"f50d4fff-fd85-4eaf-8616-8f188da379c9","block_type":"box","text":"Only information that is clearly identified as applicable to","page_number":518,"box":{"x":46,"y":566,"width":400,"height":13}},{"id":"36a89e26-be1e-441d-84bc-d1172831883e","block_type":"box","text":"a Covered Fund is considered to form a part of that Covered Fund’s","page_number":518,"box":{"x":452,"y":566,"width":471,"height":13}},{"id":"6d0445ea-0d81-4f0d-98bd-09dfc6411bb7","block_type":"box","text":"SAI.","page_number":518,"box":{"x":46,"y":582,"width":27,"height":10}},{"id":"7e6c93c6-d104-44e0-a41f-00296f1aa776","block_type":"box","text":"Bank Money Instruments.","page_number":518,"box":{"x":45,"y":605,"width":182,"height":13}},{"id":"a7462065-15c8-4b96-9359-05bcd1f3b040","block_type":"box","text":"Certain Funds may invest in U.S. dollar-denominated obligations of U.S. and foreign depository","page_number":518,"box":{"x":233,"y":605,"width":664,"height":13}},{"id":"0ffdb26c-7e20-4e58-928a-253fb75cc423","block_type":"box","text":"institutions, including commercial and savings banks, savings and","page_number":518,"box":{"x":45,"y":621,"width":456,"height":13}},{"id":"41b1766c-1bea-4af4-9e04-d8b5c879076d","block_type":"box","text":"loan associations, and other institutions. Such obligations","page_number":518,"box":{"x":506,"y":621,"width":398,"height":13}},{"id":"5ff638d6-68a6-48f9-bc54-1dd16fdb6b8f","block_type":"box","text":"include but are not limited to certificates of deposit, bankers’ acceptances, time deposits, bank notes and deposit notes. For","page_number":518,"box":{"x":45,"y":636,"width":851,"height":13}},{"id":"dd549e0e-c296-4771-a1c6-33d7dd5b72a0","block_type":"box","text":"example, the obligations may be issued by (i) U.S. or foreign depos","page_number":518,"box":{"x":46,"y":652,"width":461,"height":13}},{"id":"c67ce97f-fae5-4ee2-8177-baa2ef5ccab1","block_type":"box","text":"itory institutions, (ii) foreign branches or subsidiaries of U.S.","page_number":518,"box":{"x":508,"y":652,"width":417,"height":13}},{"id":"4ef22f6e-6857-4b30-abe2-6d131f0c0cd2","block_type":"box","text":"depository institutions (“Eurodollar” obligations), (iii) U.S. branches or subsidiaries of foreign depository institutions","page_number":518,"box":{"x":46,"y":667,"width":811,"height":13}},{"id":"51c7d436-9bf6-45d2-b599-e6037c963239","block_type":"box","text":"(“Yankeedollar” obligations) or (iv) foreign branches or s","page_number":518,"box":{"x":46,"y":683,"width":399,"height":13}},{"id":"ff7d24fc-4773-4eac-b88a-24a8fea42a3d","block_type":"box","text":"ubsidiaries of foreign depository institutions. Eurodollar and","page_number":518,"box":{"x":446,"y":683,"width":419,"height":13}},{"id":"3090e9c2-c9c0-40ad-b800-f64f49a0e1fe","block_type":"box","text":"Yankeedollar obligations and obligations of branches or subsid","page_number":518,"box":{"x":45,"y":698,"width":439,"height":13}},{"id":"f39fa633-7e45-4747-ab09-69c7aae5862c","block_type":"box","text":"iaries of foreign depository institutions may be general obligations","page_number":518,"box":{"x":484,"y":698,"width":458,"height":13}},{"id":"0b135c6b-8943-4a91-82f1-6fa6a725660e","block_type":"box","text":"of the parent bank or may be limited to the issuing branch or subsidiary by the terms of the specific obligations or by government","page_number":518,"box":{"x":46,"y":714,"width":897,"height":13}},{"id":"858054de-ce47-42e1-b2d8-0bc8d28e5715","block_type":"box","text":"regulation. Investments in obligations of foreign depository in","page_number":518,"box":{"x":45,"y":729,"width":428,"height":13}},{"id":"efef0285-8b41-4362-83e2-4f7ca4c43a53","block_type":"box","text":"stitutions and their foreign branches and subsidiaries will only be","page_number":518,"box":{"x":474,"y":729,"width":451,"height":13}},{"id":"536aa722-93ec-4bec-91ec-5c1e90e8d056","block_type":"box","text":"made if determined to be of comparable quality to other investments permissible for each Fund. No Fund will invest more than","page_number":518,"box":{"x":45,"y":745,"width":883,"height":13}},{"id":"e1567725-964a-479d-8831-0247955a2064","block_type":"box","text":"25% of its total assets (taken at market value at the time of each investment) in obligations of foreign depository institutions and","page_number":518,"box":{"x":45,"y":760,"width":893,"height":13}},{"id":"f706ee26-6fe5-4829-99fc-210a34e5d032","block_type":"box","text":"their foreign branches and subsidiaries or in obligations of foreign","page_number":518,"box":{"x":45,"y":776,"width":458,"height":13}},{"id":"51533d38-b050-45bc-942b-31e80873f7ec","block_type":"box","text":"branches or subsidiaries of U.S. depository institutions that are","page_number":518,"box":{"x":508,"y":776,"width":434,"height":13}},{"id":"dde15b54-433e-446e-bbd3-13f4bd1c32af","block_type":"box","text":"not backed by the U.S. parent. The Funds treat bank money instruments issued by U.S. branches or subsidiaries of foreign banks","page_number":518,"box":{"x":45,"y":791,"width":891,"height":13}},{"id":"c59f7798-8848-49b2-81d3-39baa3433926","block_type":"box","text":"as obligations issued by domestic banks (not subject to the 25% limitation) if the branch or subsidiary is subject to the same bank","page_number":518,"box":{"x":46,"y":807,"width":899,"height":13}},{"id":"4b8bb5e0-cc48-485e-9ee4-b5792499515a","block_type":"box","text":"regulation as U.S. banks.","page_number":518,"box":{"x":45,"y":822,"width":171,"height":13}},{"id":"f309f4c0-83ba-4c2c-a9f4-b68f2ab42d98","block_type":"box","text":"Eurodollar and Yankeedollar obligations, as well as other obliga","page_number":518,"box":{"x":45,"y":846,"width":447,"height":13}},{"id":"0b0c751a-976c-4d04-9b62-ecf9e41c5e0f","block_type":"box","text":"tions of foreign depository institutions and short term obligations","page_number":518,"box":{"x":493,"y":846,"width":454,"height":13}},{"id":"4de8067b-e778-42ac-80da-0a8be0237480","block_type":"box","text":"issued by other foreign entities, may involve additional investme","page_number":518,"box":{"x":45,"y":861,"width":444,"height":13}},{"id":"afe937c9-9463-4a8d-b850-9ae906823242","block_type":"box","text":"nt risks, including adverse political and economic developments,","page_number":518,"box":{"x":490,"y":861,"width":445,"height":13}},{"id":"1ef19e05-21b6-4be7-9df4-06300be37ebf","block_type":"box","text":"the possible imposition of withholding taxes on interest income payab","page_number":518,"box":{"x":45,"y":877,"width":486,"height":13}},{"id":"e9cbc965-e5b2-422c-a77e-1cec7d828085","block_type":"box","text":"le on such obligations, the possible seizure or nationalization","page_number":518,"box":{"x":532,"y":877,"width":420,"height":13}},{"id":"01d11d64-2cc2-4bf6-aea2-f3c66d2d87b5","block_type":"box","text":"II-1","page_number":518,"box":{"x":487,"y":917,"width":24,"height":9}},{"id":"dc96210b-9083-4647-afec-987c42e412e8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":518,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0cf9fa84-2282-44cb-9fe8-ab1cf0dbcd83","block_type":"box","text":"of foreign deposits and the possible establishment of exchange cont","page_number":519,"box":{"x":46,"y":79,"width":465,"height":13}},{"id":"1de0b5b1-0815-4a39-98ac-44fb6a495248","block_type":"box","text":"rols or other foreign governmental laws or restrictions that","page_number":519,"box":{"x":512,"y":79,"width":407,"height":13}},{"id":"7a1889cd-cc25-4bd8-a745-c0e01ef1f69b","block_type":"box","text":"might adversely affect the repayment of principal and the payment of interest. The issuers of such obligations may not be subject","page_number":519,"box":{"x":45,"y":94,"width":891,"height":13}},{"id":"50273f52-d5fc-4f18-81ae-cf921f70c2be","block_type":"box","text":"to U.S. regulatory requirements. Foreign branches or subs","page_number":519,"box":{"x":45,"y":110,"width":400,"height":13}},{"id":"7db47216-0345-4d11-b0c4-f957ad995ee2","block_type":"box","text":"idiaries of U.S. banks may be subject to less stringent reserve","page_number":519,"box":{"x":446,"y":110,"width":418,"height":13}},{"id":"c6825f9e-f23f-4a41-ae5a-36103e5dbe10","block_type":"box","text":"requirements than U.S. banks. U.S. branches or subsidiaries of foreign banks are subject to the reserve requirements of the states in","page_number":519,"box":{"x":45,"y":125,"width":906,"height":13}},{"id":"4f8f43d6-c50d-4a04-86fe-17a9cbe73672","block_type":"box","text":"which they are located. There may be less publicly available information about a U.S. branch or subsidiary of a foreign bank or","page_number":519,"box":{"x":45,"y":141,"width":884,"height":13}},{"id":"423f3486-00f6-4362-b246-b25b8adcafc2","block_type":"box","text":"other issuer than about a U.S. bank or other issuer, and such entities may not be subject to the same accounting, auditing and","page_number":519,"box":{"x":46,"y":156,"width":869,"height":13}},{"id":"f5248546-86d3-4dff-a3dc-fea5e92ab3ca","block_type":"box","text":"financial record keeping standards and requirements as U.S. issu","page_number":519,"box":{"x":45,"y":172,"width":446,"height":13}},{"id":"758057e0-ddfe-49d9-9c3f-8b3c7a8cd0a2","block_type":"box","text":"ers. Evidence of ownership of Eurodollar and foreign obligations","page_number":519,"box":{"x":491,"y":172,"width":449,"height":13}},{"id":"130e9cde-82d4-4d60-9ecd-5061223358d8","block_type":"box","text":"may be held outside the United States, and the Funds may be subject to the risks associated with the holding of such property","page_number":519,"box":{"x":45,"y":187,"width":868,"height":13}},{"id":"ed083e4b-9c90-4df3-a764-947f4074ee4d","block_type":"box","text":"overseas. Eurodollar and foreign obligations of the Funds held overseas will be held by foreign branches of each Fund’s custodian","page_number":519,"box":{"x":46,"y":203,"width":897,"height":13}},{"id":"e0debdae-47eb-4ca1-bd80-4829480d9743","block_type":"box","text":"or by other U.S. or foreign banks under subcustodian arrangements complying with the requirements of the Investment Company","page_number":519,"box":{"x":46,"y":218,"width":899,"height":13}},{"id":"3f9ace38-34f9-4809-8876-26e4cad5257a","block_type":"box","text":"Act.","page_number":519,"box":{"x":45,"y":234,"width":28,"height":10}},{"id":"f0ea9a94-7e33-494d-b6c3-4d2ee00dca8b","block_type":"box","text":"The Manager will carefully consider the above factors in making investments in Eurodollar obligations, Yankeedollar obligations","page_number":519,"box":{"x":45,"y":257,"width":896,"height":13}},{"id":"17cd1de5-d66c-46dc-b841-a3d3d6b9eda6","block_type":"box","text":"of foreign depository institutions and other foreign short term ob","page_number":519,"box":{"x":46,"y":273,"width":450,"height":12}},{"id":"613294cf-58b0-401e-948f-3d0715a761a8","block_type":"box","text":"ligations, and will not knowingly purchase obligations that, at","page_number":519,"box":{"x":497,"y":273,"width":431,"height":12}},{"id":"8eff8eb6-8c26-455c-8b8c-ee1a1b688d68","block_type":"box","text":"the time of purchase, are subject to exchange controls or wit","page_number":519,"box":{"x":45,"y":288,"width":419,"height":13}},{"id":"88815346-09eb-41a2-aa9e-475efe17c5a3","block_type":"box","text":"hholding taxes. Generally, a Fund will limit its Yankeedollar","page_number":519,"box":{"x":464,"y":288,"width":420,"height":13}},{"id":"2cd4185a-0dc6-493f-96a5-67331ef1f52b","block_type":"box","text":"investments to obligations of banks organized in Canada, France, Germany, Japan, the Netherlands, Switzerland, the United","page_number":519,"box":{"x":45,"y":304,"width":864,"height":12}},{"id":"33fc1634-00aa-4880-97ed-7a0dfb40853c","block_type":"box","text":"Kingdom or other industrialized nations.","page_number":519,"box":{"x":45,"y":319,"width":282,"height":13}},{"id":"1279f93c-0a4d-4f49-a047-c0044e94452c","block_type":"box","text":"Bank money instruments in which certain Funds invest must be","page_number":519,"box":{"x":46,"y":342,"width":438,"height":13}},{"id":"9296bc50-fce9-485b-b7b3-96c23d02f4b0","block_type":"box","text":"issued by depository institutions with total assets of at least","page_number":519,"box":{"x":489,"y":342,"width":411,"height":13}},{"id":"ddf47a4f-adf7-443c-a6b0-53b5dea2304b","block_type":"box","text":"$1 billion, except that such Funds may invest in certificates of deposit of smaller institutions if such certificates of deposit are","page_number":519,"box":{"x":46,"y":358,"width":863,"height":13}},{"id":"2f4ca469-9235-441f-8681-4c0ad8b22f0d","block_type":"box","text":"Federally insured and if, as a result of such purchase, no more than 10% of total assets (taken at market value), are invested in","page_number":519,"box":{"x":45,"y":373,"width":878,"height":13}},{"id":"a6541d37-ee78-445b-9136-9d193b54a778","block_type":"box","text":"such certificates of deposit.","page_number":519,"box":{"x":46,"y":389,"width":185,"height":13}},{"id":"2fac7241-5066-40dd-a971-6abd9558c326","block_type":"box","text":"Commercial Paper and Other Short Term Obligations","page_number":519,"box":{"x":46,"y":412,"width":382,"height":13}},{"id":"ca2e8717-56e2-49b7-964c-0a76ec7d0500","block_type":"box","text":". Commercial paper (including variable amount master demand notes and","page_number":519,"box":{"x":429,"y":412,"width":512,"height":13}},{"id":"fe241e54-746e-48ff-a671-21c598fb8c5c","block_type":"box","text":"other variable rate securities, with or without forward features) refers to short term unsecured promissory notes issued by","page_number":519,"box":{"x":46,"y":428,"width":842,"height":12}},{"id":"17a1a153-8167-4e09-a282-b579fb5e2954","block_type":"box","text":"corporations, partnerships, trusts or other entities to finance short term credit needs and non-convertible debt securities (","page_number":519,"box":{"x":45,"y":443,"width":836,"height":13}},{"id":"500f78e3-36c2-4a16-bdfb-d8d65b1e7b20","block_type":"box","text":"e.g.,","page_number":519,"box":{"x":883,"y":447,"width":26,"height":9}},{"id":"25273a87-32d2-4d09-a0aa-61dc3fde05cd","block_type":"box","text":"bonds and debentures) with no more than 397 days remaining to matur","page_number":519,"box":{"x":46,"y":459,"width":498,"height":12}},{"id":"95416d7e-e821-4c1d-9414-9a7c10b2e046","block_type":"box","text":"ity at the date of purchase. Short term obligations issued","page_number":519,"box":{"x":544,"y":459,"width":391,"height":12}},{"id":"b9606ba2-a2c2-4531-97d7-d888067ec98b","block_type":"box","text":"by trusts, corporations, partnerships or other entities include mortgage","page_number":519,"box":{"x":46,"y":474,"width":489,"height":13}},{"id":"88863958-a0b4-48fd-8744-427bf7d10639","block_type":"box","text":"-related or asset-backed instruments, including pass-through","page_number":519,"box":{"x":536,"y":474,"width":417,"height":13}},{"id":"e0717a14-6579-4dee-a78a-25d9d701cbe9","block_type":"box","text":"certificates such as participations in, or bonds and notes backed by, pools of mortgage, automobile, manufactured housing or","page_number":519,"box":{"x":45,"y":490,"width":870,"height":12}},{"id":"3f556c0b-a5de-48f0-a8cd-781e7527ad65","block_type":"box","text":"other types of consumer loans; credit card or trade receivables or pools of mortgage-backed or asset-backed securities. These","page_number":519,"box":{"x":46,"y":505,"width":863,"height":13}},{"id":"16cc2dd9-5262-4ad2-9518-f81be2e32a3a","block_type":"box","text":"structured financings will be supported by sufficient collateral and","page_number":519,"box":{"x":46,"y":521,"width":458,"height":12}},{"id":"eaa80713-a772-47e6-b2d3-bf6b3ef07e77","block_type":"box","text":"other credit enhancements, including letters of credit, insurance,","page_number":519,"box":{"x":509,"y":521,"width":442,"height":12}},{"id":"65bb7bb0-27ba-4b87-a8a1-04a8367d9fd4","block_type":"box","text":"reserve funds and guarantees by third parties, to enable such inst","page_number":519,"box":{"x":45,"y":536,"width":448,"height":13}},{"id":"726a471d-29a1-4e1b-910a-68938cd8fcb0","block_type":"box","text":"ruments to obtain a quality rating by a Nationally Recognized","page_number":519,"box":{"x":494,"y":536,"width":431,"height":13}},{"id":"68c125b2-0a3e-4c2a-8bf4-6f30b6409688","block_type":"box","text":"Statistical Rating Organization (“NRSRO”), if applicable. Some structured financings also use various types of swaps, among","page_number":519,"box":{"x":46,"y":552,"width":872,"height":12}},{"id":"59dd56cb-44ee-41f3-bc78-6f523ee82c24","block_type":"box","text":"other things, to issue instruments that have interest rate, quality or maturity characteristics necessary or desirable for a Fund.","page_number":519,"box":{"x":46,"y":567,"width":863,"height":13}},{"id":"c448526c-f400-4abe-9de8-5ca83e0c7005","block_type":"box","text":"These swaps may include so-called credit default swaps that might depend for payment not only on the credit of a counterparty,","page_number":519,"box":{"x":45,"y":583,"width":888,"height":12}},{"id":"16a60c03-6834-4fbd-81dc-ac15a54f0dc7","block_type":"box","text":"but also on the obligations of another entity, the “reference entity.” Commercial paper is generally considered to be short-term","page_number":519,"box":{"x":46,"y":598,"width":879,"height":13}},{"id":"8517da8c-862a-422c-af9e-ee19c02b8664","block_type":"box","text":"unsecured debt of corporations. Like all fixed income securities,","page_number":519,"box":{"x":46,"y":614,"width":441,"height":12}},{"id":"1eef418c-156a-4e54-8917-a443f19f67c8","block_type":"box","text":"commercial paper prices are susceptible to fluctuations in interest","page_number":519,"box":{"x":493,"y":614,"width":452,"height":12}},{"id":"b1dc6c33-37c0-4acd-9905-45ce7d3cf0dd","block_type":"box","text":"rates. If interest rates rise, commercial paper prices will declin","page_number":519,"box":{"x":45,"y":629,"width":427,"height":13}},{"id":"dccebbab-35af-4c7c-94b2-29485da118a7","block_type":"box","text":"e and vice versa. However, the short-term nature of a commercial","page_number":519,"box":{"x":472,"y":629,"width":455,"height":12}},{"id":"1ec0fe6d-e44b-4190-9630-d53cdb5de4a0","block_type":"box","text":"paper investment generally makes it less susceptible to volatility th","page_number":519,"box":{"x":45,"y":645,"width":459,"height":12}},{"id":"3892597d-8880-4127-9913-ccd19e5db9c1","block_type":"box","text":"an many other fixed income securities because interest rate risk","page_number":519,"box":{"x":505,"y":645,"width":437,"height":12}},{"id":"686e20da-eded-4af2-a831-373acd0488fd","block_type":"box","text":"typically increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate debt","page_number":519,"box":{"x":45,"y":660,"width":892,"height":13}},{"id":"1e0fe9cb-e9f5-46b1-95bd-1c9a2f5c3266","block_type":"box","text":"because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":519,"box":{"x":46,"y":676,"width":771,"height":12}},{"id":"347d1891-1bfe-4940-a4fa-f03ec1895ea7","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":519,"box":{"x":45,"y":707,"width":426,"height":13}},{"id":"24fe9784-6d57-48a6-8f71-4c4746972714","block_type":"box","text":". Although a Fund does not seek to implement a specific","page_number":519,"box":{"x":473,"y":707,"width":387,"height":12}},{"id":"41fcc184-9da9-4fc6-8b5c-86efc685ae98","block_type":"box","text":"sustainability objective, strategy or process unless disclosed in th","page_number":519,"box":{"x":46,"y":722,"width":445,"height":13}},{"id":"216dc30b-1e4d-4e74-acd9-516d119a8b6e","block_type":"box","text":"e Fund’s Prospectus, BlackRock will consider ESG factors as part","page_number":519,"box":{"x":491,"y":722,"width":452,"height":13}},{"id":"d1bd3a88-8d8c-4cf4-9a32-13d0f3146547","block_type":"box","text":"of the credit research and investment process for a Fund. BlackRock views ESG integration as the practice of incorporating","page_number":519,"box":{"x":46,"y":738,"width":852,"height":12}},{"id":"95fe4ac2-9175-41ea-b74e-c79e0d172a20","block_type":"box","text":"financially material ESG data or information into investment processes with the objective of enhancing risk-adjusted returns. All","page_number":519,"box":{"x":45,"y":753,"width":890,"height":13}},{"id":"d3f17497-afc4-4c17-af4e-c35d6f7ade66","block_type":"box","text":"securities purchases by a Fund are selected from approved lists maintained by BlackRock. All instruments on an approved list used","page_number":519,"box":{"x":46,"y":769,"width":905,"height":13}},{"id":"564d0146-fe58-45aa-b62e-4d7ea726e4a0","block_type":"box","text":"by a Fund have met the minimal credit risk requirement of Rule 2a-7, if required. In reviewing instruments, BlackRock will","page_number":519,"box":{"x":46,"y":784,"width":853,"height":13}},{"id":"39a2fd6a-3284-45a6-b5c2-a9173c2eb363","block_type":"box","text":"consider the capacity of the issuer or guarantor to meet its obli","page_number":519,"box":{"x":45,"y":800,"width":434,"height":13}},{"id":"5843f429-3cf9-4964-a324-ab4efe2fcfe2","block_type":"box","text":"gations. BlackRock considers ESG data within the total data","page_number":519,"box":{"x":480,"y":800,"width":419,"height":13}},{"id":"e8b53d9b-0f4f-4630-984e-c6b1d6e5ff0f","block_type":"box","text":"available during its review. This may include third party research as well as considerations of proprietary BlackRock research","page_number":519,"box":{"x":46,"y":815,"width":868,"height":13}},{"id":"97a1ccbe-8433-49b2-8a9e-bb7a79fc5ff1","block_type":"box","text":"across the ESG risks and opportunities regarding an issuer.","page_number":519,"box":{"x":46,"y":831,"width":406,"height":13}},{"id":"b13fc3db-9696-4e93-be5c-f5a1821954d6","block_type":"box","text":"The ESG characteristics utilized in a Fund’s investment processes are anticipated to evolve over time and one or more","page_number":519,"box":{"x":45,"y":862,"width":813,"height":13}},{"id":"01d02523-8b27-4fb3-8845-2943bfc85c11","block_type":"box","text":"characteristics may not be relevant with respect to all issuers that are eligible for investment. Certain of these considerations may","page_number":519,"box":{"x":45,"y":877,"width":891,"height":13}},{"id":"d97a32e6-7554-40fc-8b45-cb6de74dbddb","block_type":"box","text":"II-2","page_number":519,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"9ec093ef-e0c3-4f98-89fc-05c2974baa29","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":519,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"308f8049-fac4-439f-a144-031e3ebf81c0","block_type":"box","text":"affect the Fund’s exposure to certain companies or industries. Wh","page_number":520,"box":{"x":46,"y":79,"width":455,"height":13}},{"id":"4d883692-f481-493e-804a-852ad4a5a4d6","block_type":"box","text":"ile BlackRock views ESG considerations as having the potential","page_number":520,"box":{"x":501,"y":79,"width":440,"height":13}},{"id":"c33272d1-65d2-44f5-a69c-e38fb1600278","block_type":"box","text":"to contribute to a Fund’s long-term performance, there is no guarantee that such results will be achieved.","page_number":520,"box":{"x":45,"y":94,"width":726,"height":13}},{"id":"37d42b13-2678-42f0-8019-8b8ed778aba3","block_type":"box","text":"Foreign Bank Money Instruments","page_number":520,"box":{"x":45,"y":118,"width":237,"height":12}},{"id":"cec8ced6-4107-47b3-b1e5-2de60dc54120","block_type":"box","text":". Foreign bank money instruments refer to U.S. dollar-denominated obligations of foreign","page_number":520,"box":{"x":283,"y":118,"width":620,"height":12}},{"id":"cf7f4462-a606-4629-a453-dff96788dd96","block_type":"box","text":"depository institutions and their foreign branches and subsidiaries, such as, but not limited to, certificates of deposit, bankers’","page_number":520,"box":{"x":46,"y":133,"width":869,"height":13}},{"id":"fb4f5a3d-4d10-47e7-bb52-b91f23baddf5","block_type":"box","text":"acceptances, time deposits, bank notes and deposit notes. The obli","page_number":520,"box":{"x":46,"y":149,"width":458,"height":12}},{"id":"582e5310-cbb8-49ec-a471-ae782edf72d1","block_type":"box","text":"gations of such foreign depository institutions and their foreign","page_number":520,"box":{"x":505,"y":149,"width":437,"height":12}},{"id":"aabf8f50-90c0-4149-a26e-b35e955de54f","block_type":"box","text":"branches and subsidiaries may be the general obligations of the parent bank or may be limited to the issuing branch or subsidiary","page_number":520,"box":{"x":46,"y":164,"width":896,"height":13}},{"id":"fd3a7797-8ea9-40e0-9da1-359302aaaef4","block_type":"box","text":"by the terms of the specific obligation or by government regulation. Such investments will only be made if determined to be of","page_number":520,"box":{"x":46,"y":180,"width":873,"height":12}},{"id":"9e658fb0-73bc-441e-889d-29d7d69f9756","block_type":"box","text":"comparable quality to other investments permissible for a Fund. A Fund will not invest more than 25% of its total assets (taken at","page_number":520,"box":{"x":45,"y":195,"width":903,"height":13}},{"id":"4f732f0a-f1df-47d7-b0d3-734155df16ec","block_type":"box","text":"market value at the time of each investment) in these obligations. Investments in foreign entities generally involve the same risks as","page_number":520,"box":{"x":45,"y":211,"width":904,"height":12}},{"id":"ff3d430c-892d-4c6d-8fe5-0ad3bfe50325","block_type":"box","text":"those described above in connection with investments in Eurodollar and Yankeedollar obligations and obligations of foreign","page_number":520,"box":{"x":45,"y":226,"width":863,"height":13}},{"id":"79f6fac6-608c-40da-96f7-1845d25363ee","block_type":"box","text":"depository institutions and their foreign branches and subsidiaries. See “Bank Money Instruments.”","page_number":520,"box":{"x":46,"y":242,"width":690,"height":12}},{"id":"cc3305bc-6045-4b3b-a74c-d8081cb322b3","block_type":"box","text":"Foreign Short Term Debt Instruments","page_number":520,"box":{"x":45,"y":265,"width":265,"height":13}},{"id":"1755028b-ee96-43ea-b4f0-3b2517ac257a","block_type":"box","text":". Foreign short term debt instruments refer to U.S. dollar-denominated commercial paper","page_number":520,"box":{"x":312,"y":265,"width":616,"height":13}},{"id":"c636fd3e-cf4f-4abc-9821-dd71d128c6cf","block_type":"box","text":"and other short term obligations issued by foreign entities. Such","page_number":520,"box":{"x":46,"y":280,"width":441,"height":13}},{"id":"92b6f902-6b57-4f3f-86c8-2001d5fc95e1","block_type":"box","text":"investments are subject to quality standards similar to those","page_number":520,"box":{"x":492,"y":280,"width":413,"height":13}},{"id":"6d948e3a-d816-4718-bbc9-2b26fe6b49ab","block_type":"box","text":"applicable to investments in comparable obligations of domes","page_number":520,"box":{"x":46,"y":296,"width":427,"height":13}},{"id":"0655b606-f7f7-436c-92fd-6d35898a2425","block_type":"box","text":"tic issuers. These investments generally involve the same risks as","page_number":520,"box":{"x":474,"y":296,"width":442,"height":13}},{"id":"e197a942-94fa-425e-a389-1c5f0ff7cd36","block_type":"box","text":"those described above in connection with investments in Eurodollar and Yankeedollar obligations and obligations of foreign","page_number":520,"box":{"x":45,"y":311,"width":863,"height":13}},{"id":"8ab72a9a-18ab-4866-bcbe-e5c44cf7de38","block_type":"box","text":"depository institutions and their foreign branches and subsidiaries. See “Bank Money Instruments.”","page_number":520,"box":{"x":46,"y":327,"width":689,"height":13}},{"id":"c998c18f-cc56-4b84-b558-c892dcf32141","block_type":"box","text":"Forward Commitments","page_number":520,"box":{"x":45,"y":350,"width":166,"height":10}},{"id":"a6827357-347d-4580-b311-e6086175eeac","block_type":"box","text":". Certain Funds may purchase or sell money market securities on a forward commitment basis at fixed","page_number":520,"box":{"x":212,"y":350,"width":709,"height":13}},{"id":"87e22211-4875-4b72-ad66-07038065b42d","block_type":"box","text":"purchase terms. The purchase or sale will be recorded on the date a F","page_number":520,"box":{"x":45,"y":366,"width":481,"height":12}},{"id":"ed704592-8946-4306-8f0e-5c866c302ecf","block_type":"box","text":"und enters into the commitment, and the value of the security","page_number":520,"box":{"x":526,"y":366,"width":427,"height":12}},{"id":"f8ab5cb0-9336-4e12-a51e-ffbe0b9e0e49","block_type":"box","text":"will thereafter be reflected in the calculation of the Fund’s NAV. The value of the security on the delivery date may be more or less","page_number":520,"box":{"x":45,"y":381,"width":905,"height":13}},{"id":"58f2db39-17cf-46ef-a3cd-f9cb31b7e7b2","block_type":"box","text":"than its purchase price. Although a Fund generally will enter into fo","page_number":520,"box":{"x":45,"y":397,"width":462,"height":12}},{"id":"5b7a7dc5-c40a-4f57-a71b-5e89dfd0fbd5","block_type":"box","text":"forward commitments with the intention of acquiring securities","page_number":520,"box":{"x":507,"y":397,"width":434,"height":12}},{"id":"9d47deef-1d5b-4a5d-871b-2357a2d7cadb","block_type":"box","text":"for its portfolio, a Fund may dispose of a commitment prior","page_number":520,"box":{"x":45,"y":412,"width":416,"height":13}},{"id":"1979b1bd-126b-4258-92b8-69201c1b32f1","block_type":"box","text":"to settlement if the Manager deems it appropriate to do so.","page_number":520,"box":{"x":466,"y":412,"width":408,"height":13}},{"id":"3a473aa9-8b4e-4f70-988d-dbcae9c41a4f","block_type":"box","text":"There can be no assurance that a security purchased or sold th","page_number":520,"box":{"x":45,"y":435,"width":432,"height":13}},{"id":"58bf45ef-3883-47ad-aff7-6f9e37e75842","block_type":"box","text":"rough a forward commitment will be delivered. The value of","page_number":520,"box":{"x":478,"y":435,"width":421,"height":13}},{"id":"b05be928-17da-40a3-8e01-e85a60b8186f","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than a Fund’s purchase price. The Fund may bear the risk","page_number":520,"box":{"x":46,"y":451,"width":896,"height":13}},{"id":"b538c1c1-e6a0-4253-bf30-5ae88be3339b","block_type":"box","text":"of a decline in the value of the security in these transactions and may not benefit from appreciation in the value of the security","page_number":520,"box":{"x":46,"y":466,"width":872,"height":13}},{"id":"93ba2572-8aef-42be-92ec-299417aa4941","block_type":"box","text":"during the commitment period.","page_number":520,"box":{"x":46,"y":482,"width":216,"height":13}},{"id":"6c8d63f0-8262-45a6-828d-73cd44a664df","block_type":"box","text":"Illiquid Investments","page_number":520,"box":{"x":45,"y":505,"width":140,"height":13}},{"id":"a531d931-64fc-446b-a9b6-5db23983cd73","block_type":"box","text":". No Fund will acquire any illiquid security (i.e., securities that cannot be sold or disposed of in the ordinary","page_number":520,"box":{"x":186,"y":505,"width":748,"height":13}},{"id":"54048bbf-f741-47b4-bbd4-23d340198f25","block_type":"box","text":"course of business within seven days at approximately the value ascribed to them by the Fund) if, immediately following such","page_number":520,"box":{"x":45,"y":521,"width":870,"height":12}},{"id":"0cf9ed27-6bd5-4077-937d-ec93f02b3187","block_type":"box","text":"purchase, more than 5% of the Fund’s total assets are invested","page_number":520,"box":{"x":45,"y":536,"width":434,"height":13}},{"id":"0c2b7db2-fe0d-4fb9-abad-9b18360b4561","block_type":"box","text":"in illiquid securities. The Manager will monitor the liquidity of","page_number":520,"box":{"x":484,"y":536,"width":436,"height":13}},{"id":"51f69e89-1ede-4560-9742-ba52b667e8a6","block_type":"box","text":"illiquid investments under the supervision of the Board.","page_number":520,"box":{"x":45,"y":552,"width":383,"height":12}},{"id":"8ad54825-47c8-42f5-90d7-3e5dc6e80960","block_type":"box","text":"Inflation Risk.","page_number":520,"box":{"x":45,"y":575,"width":100,"height":13}},{"id":"198ded12-60c0-4440-ba29-2a1ebe56116c","block_type":"box","text":"The Funds are subject to inflation risk. Inflation risk is the risk that the present value of assets or income from","page_number":520,"box":{"x":151,"y":575,"width":762,"height":13}},{"id":"dab3a1e7-ba6a-45de-8f1a-11b12b46a383","block_type":"box","text":"investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of a Fund’s","page_number":520,"box":{"x":45,"y":590,"width":902,"height":13}},{"id":"0b49dea4-1412-4b5c-8857-fde307fe6f26","block_type":"box","text":"assets can decline as can the value of a Fund’s distributions. Inflation rates may change frequently and significantly due to a","page_number":520,"box":{"x":46,"y":606,"width":855,"height":13}},{"id":"256b618c-2522-42c8-b06f-f44a064efb10","block_type":"box","text":"number of potential factors, including, among others, unexpect","page_number":520,"box":{"x":45,"y":621,"width":439,"height":13}},{"id":"06b4237c-0ca1-4d06-8930-1e2cfcc33a9e","block_type":"box","text":"ed economic shifts or changes in fiscal or monetary policies.","page_number":520,"box":{"x":484,"y":621,"width":414,"height":13}},{"id":"81868b71-015b-4d03-bc83-48432ce3fe8a","block_type":"box","text":"Investment in Other Investment Companies.","page_number":520,"box":{"x":45,"y":645,"width":311,"height":13}},{"id":"e9da5052-5a22-4052-974f-50b96c65ec84","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other investment companies","page_number":520,"box":{"x":362,"y":645,"width":554,"height":12}},{"id":"e0f28900-a19e-4d2c-a014-d5d77b5a7e3c","block_type":"box","text":"(including investment companies managed by BlackRock and its affiliates), including money market funds and exchange-traded","page_number":520,"box":{"x":46,"y":660,"width":885,"height":13}},{"id":"f3273ef1-9448-4b91-a27e-b605dad03e9b","block_type":"box","text":"funds (“ETFs”), which are typically open-end funds or unit investment trusts listed on a stock exchange. Under","page_number":520,"box":{"x":45,"y":676,"width":771,"height":12}},{"id":"5dd9e9e8-f916-444b-bcd2-f5eae742db1d","block_type":"box","text":"Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets in securities of","page_number":520,"box":{"x":46,"y":691,"width":867,"height":13}},{"id":"acf4db1b-b508-4b3f-b8c3-0cea68a1200a","block_type":"box","text":"other investment companies (measured at the time of such invest","page_number":520,"box":{"x":46,"y":707,"width":447,"height":12}},{"id":"6f7d6919-2874-4353-8c96-caf27596b1dc","block_type":"box","text":"ment). In addition, under Section 12(d)(1)(A) of the Investment","page_number":520,"box":{"x":493,"y":707,"width":438,"height":12}},{"id":"ead46644-da43-4968-84aa-9f04796f4902","block_type":"box","text":"Company Act a Fund may not acquire securities of an investment company if such acquisition would cause the Fund to own more","page_number":520,"box":{"x":46,"y":722,"width":903,"height":13}},{"id":"d1ae4d70-b9a8-44b6-a385-8b9837abfe9e","block_type":"box","text":"than 3% of the total outstanding voting stock of such investment company and a Fund may not invest in another investment","page_number":520,"box":{"x":45,"y":738,"width":866,"height":12}},{"id":"28e6a171-9882-4dd4-8468-12d3ecb62657","block_type":"box","text":"company if such investment would cause more than 5% of the value of the Fund’s total assets to be invested in securities of such","page_number":520,"box":{"x":45,"y":753,"width":891,"height":13}},{"id":"961b87eb-cba2-4e2d-90f0-1cb625313c13","block_type":"box","text":"investment company. (These limits do not restrict a feeder fund from investing all of its assets in shares of its master portfolio.) In","page_number":520,"box":{"x":45,"y":769,"width":896,"height":13}},{"id":"e88302dd-108a-4f6a-ad59-fa54ec3899b5","block_type":"box","text":"addition to the restrictions on investing in other investme","page_number":520,"box":{"x":46,"y":784,"width":395,"height":13}},{"id":"833aa254-ee34-4f91-9009-243d84df4f72","block_type":"box","text":"nt companies discussed above, under Section 12(d)(1)(C) of the","page_number":520,"box":{"x":442,"y":784,"width":438,"height":13}},{"id":"69492746-921e-42ea-a500-e64b78509a63","block_type":"box","text":"Investment Company Act a Fund may not invest in a registered closed-end investment company if such investment would cause","page_number":520,"box":{"x":45,"y":800,"width":884,"height":13}},{"id":"535c0b0e-7ea1-4a57-9a4b-c8b0cade2a7b","block_type":"box","text":"the Fund and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of such","page_number":520,"box":{"x":45,"y":815,"width":909,"height":13}},{"id":"ea0b8dad-d427-4f55-bda3-80b6676dc60f","block_type":"box","text":"closed-end investment company. Pursuant to Section 12(d)(1","page_number":520,"box":{"x":45,"y":831,"width":420,"height":13}},{"id":"a0fdfbf4-b9a3-40fa-8e18-26f894a1e323","block_type":"box","text":")(G) of the Investment Company Act, these percentage limitations do","page_number":520,"box":{"x":468,"y":831,"width":476,"height":13}},{"id":"630fcd79-7ab0-4c1a-b62d-227404272b86","block_type":"box","text":"not apply to investments in affiliated investment companies, in","page_number":520,"box":{"x":45,"y":846,"width":434,"height":13}},{"id":"f1ee9649-d835-4525-bc36-e065f4e6a057","block_type":"box","text":"cluding ETFs, subject to certain conditions. In addition, a Fund may","page_number":520,"box":{"x":479,"y":846,"width":473,"height":13}},{"id":"8d7be3ec-e1b9-41d2-b266-5be39c118773","block_type":"box","text":"be able to rely on certain rules under the Investment Company Act to invest in shares of money market funds or other investment","page_number":520,"box":{"x":46,"y":862,"width":897,"height":13}},{"id":"a002c566-6171-4bcd-bfc6-a416bbe3749c","block_type":"box","text":"companies beyond the statutory limits noted above, but subject to certain conditions.","page_number":520,"box":{"x":45,"y":877,"width":590,"height":13}},{"id":"a914084b-74a2-4069-a02f-3b33c4f3f9d3","block_type":"box","text":"II-3","page_number":520,"box":{"x":487,"y":917,"width":24,"height":9}},{"id":"0c8cfe30-e80c-4d8e-a313-a4f42f31f160","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":520,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c81227dc-0e4b-431b-9382-549f936d7191","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":521,"box":{"x":45,"y":79,"width":767,"height":13}},{"id":"f05de5e6-3a03-49a6-a009-6516581e5951","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange may at times be","page_number":521,"box":{"x":46,"y":101,"width":854,"height":13}},{"id":"8aa4125f-6d44-428a-a934-dcdf790285e4","block_type":"box","text":"acquired at market prices representing premiums to their NAVs. In","page_number":521,"box":{"x":46,"y":117,"width":464,"height":12}},{"id":"fadc07a5-e153-4f11-9306-330c0214a9b2","block_type":"box","text":"addition, investment companies held by a Fund that trade on","page_number":521,"box":{"x":515,"y":117,"width":422,"height":12}},{"id":"4646c270-9a1d-4d58-9bc9-7da83e4fb314","block_type":"box","text":"an exchange could trade at a discount from NAV, and such discount could increase while the Fund holds the shares. If the market","page_number":521,"box":{"x":46,"y":132,"width":901,"height":13}},{"id":"e7d077b6-a372-44d6-b59d-229318dab16d","block_type":"box","text":"price of shares of an exchange-traded investment company decreases below the price that the Fund paid for the shares and the","page_number":521,"box":{"x":45,"y":148,"width":874,"height":12}},{"id":"a81b1ec2-6a24-45e4-9eeb-6e711d6b8185","block_type":"box","text":"Fund were to sell its shares of such investment company at a time when the market price is lower than the price at which it","page_number":521,"box":{"x":45,"y":163,"width":852,"height":13}},{"id":"25dd88cd-0a99-47be-86e4-dc29701ec183","block_type":"box","text":"purchased the shares, the Fund would experience a loss.","page_number":521,"box":{"x":45,"y":179,"width":387,"height":12}},{"id":"6a5515b0-2079-4f55-9d13-fa4b73a8ba30","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, in","page_number":521,"box":{"x":45,"y":201,"width":455,"height":13}},{"id":"bae16476-59d6-496b-879f-1e5c6ee583a8","block_type":"box","text":"cluding affiliated investment companies, shareholders would","page_number":521,"box":{"x":500,"y":201,"width":419,"height":13}},{"id":"a1b632c5-db2d-49e8-9b8d-289493c53117","block_type":"box","text":"bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such investment companies. Such","page_number":521,"box":{"x":46,"y":216,"width":867,"height":13}},{"id":"b42de2b1-3f4c-4327-ab57-3fb536c61502","block_type":"box","text":"expenses, both at the Fund level and acquired investment comp","page_number":521,"box":{"x":46,"y":232,"width":438,"height":13}},{"id":"cf76d618-5be5-4acb-bd32-4bdad9a39010","block_type":"box","text":"any level, would include management and advisory fees, unless","page_number":521,"box":{"x":485,"y":232,"width":435,"height":13}},{"id":"d2d1bc82-acae-4414-b501-e46a01fdae79","block_type":"box","text":"such fees have been waived by BlackRock. Please see the relevant Fund’s Prospectus to determine whether any such management","page_number":521,"box":{"x":46,"y":247,"width":892,"height":13}},{"id":"2bbd6188-5d04-4626-9762-8d5d53c24d3c","block_type":"box","text":"and advisory fees have been waived by BlackRock. Investments by a Fund in wholly owned investment entities created under the","page_number":521,"box":{"x":46,"y":263,"width":892,"height":13}},{"id":"db6126d1-1ac1-481c-b453-31b4dd628f4e","block_type":"box","text":"laws of certain countries will not be deemed an investment in other investment companies. Pursuant to guidance issued by the staff","page_number":521,"box":{"x":45,"y":278,"width":908,"height":13}},{"id":"0c3f3100-df8b-47df-8aa7-445c48391ca3","block_type":"box","text":"of the Commission, fees and expenses of money market funds used for the investment of cash collateral received in connection","page_number":521,"box":{"x":46,"y":294,"width":875,"height":13}},{"id":"23d02f0d-bbb8-49d0-bffd-f5295d174482","block_type":"box","text":"with loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses charged by other","page_number":521,"box":{"x":45,"y":309,"width":894,"height":13}},{"id":"98a12f66-ea91-4a30-9702-3d978755b6d1","block_type":"box","text":"investment companies and pooled investment vehicles in which a Fund invests a portion of its assets.","page_number":521,"box":{"x":45,"y":325,"width":696,"height":13}},{"id":"62fcb60a-5bd0-4a97-9dd3-ae0dc95da2ff","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 may be limited. In","page_number":521,"box":{"x":45,"y":354,"width":887,"height":13}},{"id":"d8c94f03-67d1-4902-b630-57b088845751","block_type":"box","text":"addition, a fund-of-funds (","page_number":521,"box":{"x":46,"y":369,"width":183,"height":13}},{"id":"38a4c129-874a-4069-adad-34697e7a7ee1","block_type":"box","text":"e.g.","page_number":521,"box":{"x":230,"y":373,"width":22,"height":9}},{"id":"1dfbc006-441e-40eb-8b6b-ee109bd43a37","block_type":"box","text":", an investment company that seeks to meet its investment objective by investing significantly in","page_number":521,"box":{"x":255,"y":369,"width":660,"height":13}},{"id":"413e57fc-f63f-4f2c-87f4-9b59b618a189","block_type":"box","text":"other investment companies) may be limited in its ability to purchase underlying funds if such underlying funds themselves own","page_number":521,"box":{"x":46,"y":385,"width":884,"height":13}},{"id":"ed874069-9797-4e96-a43b-8377fffed544","block_type":"box","text":"shares of underlying funds.","page_number":521,"box":{"x":46,"y":400,"width":186,"height":13}},{"id":"63c7fb03-ee43-4503-aab0-20dc22edc348","block_type":"box","text":"A number of publicly traded closed-end investment companie","page_number":521,"box":{"x":45,"y":423,"width":427,"height":13}},{"id":"32e7ff3f-0bf4-44c4-bc47-8c6c0affc8dd","block_type":"box","text":"s have been organized to facilitate indirect foreign investment in","page_number":521,"box":{"x":473,"y":423,"width":442,"height":13}},{"id":"bd0469ea-2edb-4474-bf96-6ca9d536325a","block_type":"box","text":"developing countries, and certain of such countries, such as Thailand,","page_number":521,"box":{"x":46,"y":438,"width":481,"height":13}},{"id":"f742ee99-360b-4647-ba6e-026d1c8ca338","block_type":"box","text":"South Korea, Chile and Brazil, have specifically authorized","page_number":521,"box":{"x":532,"y":438,"width":407,"height":13}},{"id":"25b6b45d-bdea-4966-8438-0248865a9bd6","block_type":"box","text":"such funds. There also are investment opportunities in certai","page_number":521,"box":{"x":46,"y":454,"width":418,"height":13}},{"id":"4af4a79c-539c-465a-82b6-d9597c925e45","block_type":"box","text":"n of such countries in pooled vehicles that resemble open-end","page_number":521,"box":{"x":464,"y":454,"width":425,"height":13}},{"id":"95be18a7-ecf0-4dfa-bf70-ab81291dadfb","block_type":"box","text":"investment companies. The restrictions on investments in securities of investment companies set forth above may limit","page_number":521,"box":{"x":45,"y":469,"width":819,"height":13}},{"id":"e1dd1f92-bcbc-4074-8263-e8a9ce4b4b11","block_type":"box","text":"opportunities for a Fund to invest indirectly in certain developing countries.","page_number":521,"box":{"x":46,"y":485,"width":523,"height":13}},{"id":"a773f0de-da16-4f61-ad5b-59ca0575651b","block_type":"box","text":"Issuer Insolvency Risk.","page_number":521,"box":{"x":45,"y":507,"width":158,"height":13}},{"id":"8061855c-79ff-44d9-8ecb-a6d126386d38","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves a high degree of","page_number":521,"box":{"x":210,"y":507,"width":736,"height":13}},{"id":"ad914aae-4f21-46fd-99d7-6064c3fe3c33","block_type":"box","text":"credit and market risk, which may be heightened during an economic downturn or recession. Should an issuer of securities held by","page_number":521,"box":{"x":45,"y":523,"width":906,"height":12}},{"id":"800db07c-9178-4420-8521-b48d1b25943e","block_type":"box","text":"a Fund become involved in a bankruptcy proceeding, reorganizatio","page_number":521,"box":{"x":46,"y":538,"width":464,"height":13}},{"id":"358dbdc0-2ecb-463f-8871-97dde435555c","block_type":"box","text":"n or financial restructuring, a wide variety of considerations","page_number":521,"box":{"x":511,"y":538,"width":415,"height":13}},{"id":"b30976bb-d882-49bc-a0b7-5f3222fd3cd7","block_type":"box","text":"make an evaluation of the outcome of the Fund’s exposure to the issuer uncertain.","page_number":521,"box":{"x":45,"y":554,"width":569,"height":12}},{"id":"55a49685-1402-4da4-aef6-d17ee236fa98","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or","page_number":521,"box":{"x":45,"y":576,"width":450,"height":13}},{"id":"4b847d20-19bd-41b8-a872-a187ac91517a","block_type":"box","text":"financial restructuring, it is unlikely that a Fund will receive any","page_number":521,"box":{"x":500,"y":576,"width":442,"height":13}},{"id":"cda20bb7-41a8-43db-9e96-85c4fb1ccb6d","block_type":"box","text":"interest payments on the securities of the issuer. A Fund will be subject","page_number":521,"box":{"x":45,"y":591,"width":490,"height":13}},{"id":"65a8a930-fc00-4819-aff5-f74dd41ec36a","block_type":"box","text":"to significant uncertainty as to whether the reorganization","page_number":521,"box":{"x":540,"y":591,"width":402,"height":13}},{"id":"7c2b1ac5-7d73-4ca5-9c04-8a14fa1a2575","block_type":"box","text":"or restructuring will be completed, and the Fund may bear certain extraordinary expenses to protect and recover its investment. A","page_number":521,"box":{"x":46,"y":607,"width":901,"height":13}},{"id":"29678b0c-eefa-48fd-b33f-c089c2cc6623","block_type":"box","text":"Fund will also be subject to significant uncertainty as to when and in what manner and for what value the obligations evidenced","page_number":521,"box":{"x":45,"y":622,"width":889,"height":13}},{"id":"a1749a0b-113d-448b-b8b4-c6f8fc2b62e2","block_type":"box","text":"by the securities of the issuer held by the Fund will eventually be satisfied.","page_number":521,"box":{"x":46,"y":638,"width":509,"height":13}},{"id":"d030e5d7-5113-4da8-9c94-fdc0472decf0","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with","page_number":521,"box":{"x":45,"y":660,"width":445,"height":13}},{"id":"156813ab-7c07-40f5-8c47-1390fe97d75e","block_type":"box","text":"respect to the securities of the issuer held by the Fund, there can","page_number":521,"box":{"x":495,"y":660,"width":441,"height":13}},{"id":"8f182d79-59eb-4a12-864e-43eb373c30d6","block_type":"box","text":"be no assurance that the securities or other assets received by a Fund in connection with such plan of reorganization or","page_number":521,"box":{"x":46,"y":676,"width":822,"height":12}},{"id":"1944ca7a-7562-4f07-aaea-f7fb8c661468","block_type":"box","text":"restructuring will not have a lower value or income potential than may have been anticipated or no value. A Fund may be unable","page_number":521,"box":{"x":45,"y":691,"width":896,"height":13}},{"id":"0b292569-1931-45f2-a17b-9c67815881a2","block_type":"box","text":"to enforce its claims or rights in any collateral or may have its clai","page_number":521,"box":{"x":45,"y":707,"width":456,"height":12}},{"id":"4caabfb2-723f-4a30-800f-d2005fe358e7","block_type":"box","text":"ms or security interest in any collateral challenged, disallowed or","page_number":521,"box":{"x":502,"y":707,"width":448,"height":12}},{"id":"754bcdc3-0d20-4fe5-a601-d8cc4ee9b3a4","block_type":"box","text":"subordinated to the claims or security interests of other creditors. In addition, amendments to the U.S. Bankruptcy Code or other","page_number":521,"box":{"x":46,"y":722,"width":894,"height":13}},{"id":"8b4e8b15-38a5-424e-aa0a-da8adcc7328b","block_type":"box","text":"relevant laws could alter the expected outcome or introduce greate","page_number":521,"box":{"x":45,"y":738,"width":462,"height":12}},{"id":"e60f1545-18c3-4257-9759-dd799aecc117","block_type":"box","text":"r uncertainty regarding the outcome of the Fund’s securities","page_number":521,"box":{"x":507,"y":738,"width":413,"height":12}},{"id":"42d4b9e8-f563-447c-8bcf-4cfea60b7f46","block_type":"box","text":"holdings in the issuer. In a bankruptcy proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund","page_number":521,"box":{"x":45,"y":753,"width":876,"height":13}},{"id":"44262cf0-9b79-43b6-9dbc-5070f843f21a","block_type":"box","text":"could be re-characterized or a Fund may receive different securities or other assets, including equity securities. 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The value of equity securities received by a Fund could decline","page_number":521,"box":{"x":45,"y":846,"width":908,"height":13}},{"id":"a44e3147-a0af-4370-a300-25689a162922","block_type":"box","text":"if the financial condition of the issuer deteriorates or if overa","page_number":521,"box":{"x":45,"y":862,"width":420,"height":10}},{"id":"14e2b2f9-b710-486c-9987-b1d41c699d80","block_type":"box","text":"ll market and economic conditions, or conditions within the issuer’s","page_number":521,"box":{"x":466,"y":862,"width":470,"height":12}},{"id":"db26b9f9-f6be-44c2-8c06-8b3b4e7e36b5","block_type":"box","text":"region or industry, deteriorate.","page_number":521,"box":{"x":45,"y":877,"width":212,"height":13}},{"id":"01323a55-95ac-4a64-916f-d68e7cfddbdb","block_type":"box","text":"II-4","page_number":521,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"74e3355f-044a-4ca4-8f46-29b1c17a9881","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":521,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"2bf8ab40-70bb-4364-a0bb-5e30b0aa6bb2","block_type":"box","text":"To the extent that a Fund receives other assets in connection","page_number":522,"box":{"x":45,"y":79,"width":419,"height":10}},{"id":"00890672-d32e-46ca-a19c-ce91a357fc77","block_type":"box","text":"with a bankruptcy proceeding, reorganization or financial","page_number":522,"box":{"x":468,"y":79,"width":402,"height":13}},{"id":"17ea4904-57d5-4d86-849a-3a74c37587ea","block_type":"box","text":"restructuring, the Fund may also be subject to additional risks associated with the assets received. 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A Fund may receive such interests in loans to the extent permitted by the Investment","page_number":522,"box":{"x":45,"y":125,"width":853,"height":13}},{"id":"ae543f98-a74c-4dbe-a8d7-3a603e227216","block_type":"box","text":"Company Act.","page_number":522,"box":{"x":46,"y":141,"width":100,"height":13}},{"id":"b7375308-f273-4a3f-8f4b-be2207cbfd63","block_type":"box","text":"Securities or other assets received in a reorganization or restructur","page_number":522,"box":{"x":46,"y":162,"width":456,"height":13}},{"id":"65b63bce-0e5e-4b1e-8f89-b272426fa28d","block_type":"box","text":"ing typically entail a higher degree of risk than investments in","page_number":522,"box":{"x":503,"y":162,"width":425,"height":13}},{"id":"d2c8a0d2-8d0d-49b9-96eb-f3a74b6f3da5","block_type":"box","text":"securities of issuers that have not undergone a reorganization or restructuring and may be subject to heavy selling or downward","page_number":522,"box":{"x":46,"y":178,"width":885,"height":12}},{"id":"35b0ecbe-3439-4852-8ee0-824a21b07981","block_type":"box","text":"pricing pressure after completion of the reorganization or restruct","page_number":522,"box":{"x":45,"y":193,"width":455,"height":13}},{"id":"a2dc0ddf-6f8c-43b6-af2c-711244a3208e","block_type":"box","text":"uring. The post-reorganization/restructuring assets and securities","page_number":522,"box":{"x":501,"y":193,"width":447,"height":13}},{"id":"91c53ede-9e98-4476-9ae7-91882f6ec125","block_type":"box","text":"may also be illiquid and difficult to sell or value. If a Fund participates in negotiations with respect to a plan of reorganization or","page_number":522,"box":{"x":45,"y":209,"width":892,"height":12}},{"id":"59b3e0b2-426d-43b6-9bd9-2581fe93fccf","block_type":"box","text":"restructuring with respect to securities of the issuer held by a Fund, the Fund also may be restricted from disposing such securities","page_number":522,"box":{"x":45,"y":224,"width":897,"height":13}},{"id":"e7a237bb-0087-4fc8-a1df-b0716ea79c5d","block_type":"box","text":"for a period of time. If a Fund becomes involved in such proceedings, the Fund may have more active participation in the affairs of","page_number":522,"box":{"x":45,"y":240,"width":906,"height":12}},{"id":"ee50c984-dd69-4f1c-8189-ab017ff8c245","block_type":"box","text":"the issuer than that assumed generally by an investor.","page_number":522,"box":{"x":45,"y":255,"width":370,"height":13}},{"id":"aaca3d8e-9dad-4980-8fe4-7200af1aee65","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":522,"box":{"x":44,"y":276,"width":257,"height":11}},{"id":"492057e6-d93c-4ca3-9318-92e813e205cf","block_type":"box","text":"Securities may decline in value due to factors affecting securities markets generally or","page_number":522,"box":{"x":307,"y":276,"width":588,"height":13}},{"id":"43b3e729-a821-49da-9c87-9372b529651c","block_type":"box","text":"particular industries represented in the markets. The value of a security may decline due to general market conditions, economic","page_number":522,"box":{"x":45,"y":292,"width":888,"height":13}},{"id":"21a099fd-2be4-406e-9fed-12d92861f65b","block_type":"box","text":"trends or events that are not specifically related to a company or to factors that affect a particular industry or industries, or factors","page_number":522,"box":{"x":45,"y":307,"width":904,"height":13}},{"id":"ea8d9bad-23f2-41bf-aa6b-3276c671ce1f","block_type":"box","text":"that affect a particular issuer or issuers, exchange, country, gr","page_number":522,"box":{"x":45,"y":323,"width":427,"height":13}},{"id":"6a5f413a-9571-49eb-8c20-014793beeb6f","block_type":"box","text":"oup of countries, region, market, industry, group of industries, sector","page_number":522,"box":{"x":473,"y":323,"width":479,"height":13}},{"id":"5e63aa63-e22a-46cc-932e-d8541ba79096","block_type":"box","text":"or asset class. The success of a Fund’s activities could be affected by interest rates, availability of credit, inflation rates, economic","page_number":522,"box":{"x":46,"y":338,"width":888,"height":13}},{"id":"be57a786-a218-4ffe-a0d0-c8d3db10a5e3","block_type":"box","text":"uncertainty, changes in laws, trade barriers, economic sanctions, cu","page_number":522,"box":{"x":46,"y":354,"width":466,"height":13}},{"id":"18556782-6a8f-4fb8-b6fd-9bcbf62f312b","block_type":"box","text":"rrency exchange controls, and local, regional or global events","page_number":522,"box":{"x":513,"y":354,"width":424,"height":13}},{"id":"2319935e-2927-4a1b-9089-51a524a0c4e2","block_type":"box","text":"such as war, acts of terrorism, natural and environmental disas","page_number":522,"box":{"x":46,"y":369,"width":435,"height":13}},{"id":"add77e58-463d-4946-8766-db95e4d5cf09","block_type":"box","text":"ters, the spread of infectious illness or other public health issues,","page_number":522,"box":{"x":482,"y":369,"width":444,"height":13}},{"id":"6d6ff510-b37f-415c-b8db-34b0c7d13c54","block_type":"box","text":"recessions, or other events could have a significant impact on a Fund","page_number":522,"box":{"x":45,"y":385,"width":476,"height":13}},{"id":"8de15443-5a92-4f6c-ba16-d1b44a03ca53","block_type":"box","text":"and its investments. During a general economic downturn in","page_number":522,"box":{"x":526,"y":385,"width":419,"height":13}},{"id":"a78faa5d-b0e4-495f-a536-f42d79600661","block_type":"box","text":"the securities markets, multiple asset classes may be negativel","page_number":522,"box":{"x":45,"y":400,"width":423,"height":13}},{"id":"09f74f19-2ec8-4cd4-b636-346f12045bdd","block_type":"box","text":"y affected. These factors may affect the level and volatility of","page_number":522,"box":{"x":468,"y":400,"width":422,"height":13}},{"id":"f0ee9c80-6b07-4630-8518-e7901ea204e7","block_type":"box","text":"securities prices and the liquidity of a Fund’s investments, which could impair a Fund’s profitability or result in losses. 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Fu","page_number":522,"box":{"x":45,"y":707,"width":457,"height":12}},{"id":"984199b7-8ea7-408c-92bd-161acae28d08","block_type":"box","text":"ture legislation or regulation or other governmental actions","page_number":522,"box":{"x":503,"y":707,"width":409,"height":12}},{"id":"3b757fb5-8d24-4427-8e22-f44662275d33","block_type":"box","text":"could limit or preclude a Fund’s abilities to achieve its investment objectives or otherwise adversely impact an investment in a","page_number":522,"box":{"x":45,"y":722,"width":868,"height":13}},{"id":"1b8db011-0984-48f7-ba04-e6ed200b045c","block_type":"box","text":"Fund. 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Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with","page_number":523,"box":{"x":46,"y":558,"width":894,"height":12}},{"id":"b35dc78d-a8fc-4269-9db2-4edec447c80c","block_type":"box","text":"any future downturns in the global economy resulting therefrom,","page_number":523,"box":{"x":46,"y":573,"width":450,"height":13}},{"id":"d1679d87-7184-4a2f-86d1-729257a78da9","block_type":"box","text":"could adversely affect the financial performance of a Fund and","page_number":523,"box":{"x":502,"y":573,"width":433,"height":13}},{"id":"0f9860a4-fb00-4368-ae43-3cf2e337f48d","block_type":"box","text":"its investments. Trade policy may be an ongoing source of instab","page_number":523,"box":{"x":45,"y":589,"width":449,"height":12}},{"id":"1601b78c-8d64-4654-912c-3511a744a3ba","block_type":"box","text":"ility, potentially resulting in significant currency fluctuations and/","page_number":523,"box":{"x":495,"y":589,"width":453,"height":12}},{"id":"2c9c4f41-a240-4d50-a5f7-6ddd1ae5d9e2","block_type":"box","text":"or having other adverse effects on international markets, intern","page_number":523,"box":{"x":46,"y":604,"width":436,"height":13}},{"id":"5689aec4-4bcb-430d-bb5c-03f643c98784","block_type":"box","text":"ational trade agreements, and/or other existing cross-border","page_number":523,"box":{"x":483,"y":604,"width":415,"height":13}},{"id":"44b35f64-4092-466a-bd99-673087e9b7d5","block_type":"box","text":"cooperation arrangements (whether economic, tax, fiscal, legal,","page_number":523,"box":{"x":45,"y":620,"width":439,"height":12}},{"id":"fa7f43df-2bab-491d-9881-1ae7ac90def2","block_type":"box","text":"regulatory, or otherwise). To the extent trade disputes escalate","page_number":523,"box":{"x":489,"y":620,"width":433,"height":12}},{"id":"f1d4bffb-3809-4ca9-ab50-fd96c2aeb59d","block_type":"box","text":"globally, there could be additional significant impacts on the sectors or industries in which a Fund invests and other adverse","page_number":523,"box":{"x":45,"y":635,"width":858,"height":13}},{"id":"155ac3d7-23ea-4b37-b9a1-1f97fd3f9621","block_type":"box","text":"impacts on a Fund’s overall performance.","page_number":523,"box":{"x":45,"y":651,"width":287,"height":12}},{"id":"bc224e22-d13e-41ab-a226-d04e9cd5ed92","block_type":"box","text":"Municipal Investments","page_number":523,"box":{"x":45,"y":686,"width":183,"height":14}},{"id":"d0fee345-3975-48c0-8ba9-2cf72ab486e4","block_type":"box","text":"Municipal Securities","page_number":523,"box":{"x":45,"y":712,"width":140,"height":13}},{"id":"70f63d1e-398a-4c5c-802f-b23fdf5f9de8","block_type":"box","text":". Certain Funds invest in short term municipal obligations issued by or on behalf of the states, their political","page_number":523,"box":{"x":187,"y":712,"width":745,"height":13}},{"id":"1cf9a8fe-345e-47a7-9002-739f68c557f0","block_type":"box","text":"subdivisions, agencies and instrumentalities and obligations of other qualifying issuers, such as issuers located in Puerto Rico, the","page_number":523,"box":{"x":46,"y":728,"width":893,"height":13}},{"id":"adcc4073-eab7-44a3-88cf-c20dfb54bfc5","block_type":"box","text":"U.S. Virgin Islands and Guam, the interest on which (and/or, in the case of property taxes, the value of which) is excludable, in the","page_number":523,"box":{"x":45,"y":743,"width":905,"height":13}},{"id":"5c1fde03-ff9d-4365-902a-6d9cdc489529","block_type":"box","text":"opinion of bond counsel to the issuer, from gross income for purposes of Federal income taxes and the applicable state’s income","page_number":523,"box":{"x":46,"y":759,"width":887,"height":13}},{"id":"eeddc28b-1be7-4bfc-860d-fc3b5d797096","block_type":"box","text":"taxes (“State Taxes”). Obligations that pay interest that is ex","page_number":523,"box":{"x":45,"y":774,"width":423,"height":13}},{"id":"5aa5a089-ee9b-4a2f-bcd5-3c8cd0bd1283","block_type":"box","text":"cludable from gross income for Federal income tax purposes are","page_number":523,"box":{"x":468,"y":774,"width":445,"height":13}},{"id":"19289eea-c63a-412b-9479-b23bfd14b1db","block_type":"box","text":"referred to herein as “Municipal Securities,” and obligations that","page_number":523,"box":{"x":45,"y":790,"width":451,"height":13}},{"id":"7c577363-450c-4b39-ba97-2d28a510a896","block_type":"box","text":"pay interest that is excludable from gross income for Federal","page_number":523,"box":{"x":501,"y":790,"width":419,"height":13}},{"id":"dd56e3a0-3fc6-470f-960f-c5daee0e9335","block_type":"box","text":"income tax purposes and are exempt from the applicable State Taxes are referred to as “State Municipal Securities.” Unless","page_number":523,"box":{"x":45,"y":805,"width":856,"height":13}},{"id":"4b6ea8cf-39ba-427d-a317-08e18ffa00a4","block_type":"box","text":"otherwise indicated, references to Municipal Securities shall be deemed to include State Municipal Securities.","page_number":523,"box":{"x":46,"y":821,"width":751,"height":13}},{"id":"9e64febe-0850-4ea4-ae61-dbf4ad18107a","block_type":"box","text":"Municipal Securities include debt obligations issued to obtai","page_number":523,"box":{"x":45,"y":846,"width":417,"height":13}},{"id":"81a628bf-7ab0-49aa-9b6e-ae7a5c93125d","block_type":"box","text":"n funds for various public purposes, including construction of a wide","page_number":523,"box":{"x":462,"y":846,"width":479,"height":13}},{"id":"49af72b1-6fdd-46a3-9a1e-aceabf8d9765","block_type":"box","text":"range of public facilities, refunding of outstanding obligations an","page_number":523,"box":{"x":45,"y":862,"width":450,"height":12}},{"id":"e40ac609-dd48-4c12-a632-fcfca9837bdc","block_type":"box","text":"d obtaining funds for general operating expenses and loans to","page_number":523,"box":{"x":495,"y":862,"width":427,"height":12}},{"id":"7b021597-83e2-4357-b14c-0f17623db077","block_type":"box","text":"other public institutions and facilities. In addition, certain types of bonds are issued by or on behalf of public authorities to finance","page_number":523,"box":{"x":46,"y":877,"width":904,"height":13}},{"id":"23bdb4a6-656f-4321-9d78-5d6fb55c3292","block_type":"box","text":"II-6","page_number":523,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"cffa1c43-86a4-4c38-ab31-e51e0fa19937","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":523,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b4f85a54-5c31-4963-88b4-31197c6841ec","block_type":"box","text":"various facilities operated for private profit. Such obligations are included within the term Municipal Securities if the interest paid","page_number":524,"box":{"x":45,"y":79,"width":898,"height":13}},{"id":"852f6b9d-f8ad-49f3-8a7b-07d6ae57a091","block_type":"box","text":"thereon is excludable from gross income for Federal income tax purposes.","page_number":524,"box":{"x":45,"y":94,"width":511,"height":13}},{"id":"ed621d81-3c41-499c-a96e-16bbb5157ae9","block_type":"box","text":"The two principal classifications of Municipal Securities are “general obligation” bonds and “revenue” or “special obligation”","page_number":524,"box":{"x":45,"y":118,"width":877,"height":12}},{"id":"5c11752f-5e18-4eac-b3e5-6fab51225ef3","block_type":"box","text":"bonds. General obligation bonds are secured by the issuer’s pledg","page_number":524,"box":{"x":46,"y":133,"width":452,"height":13}},{"id":"755b3a86-db5d-494f-82d3-9f552cbe50dd","block_type":"box","text":"e of its faith, credit and taxing power for the repayment of","page_number":524,"box":{"x":499,"y":133,"width":405,"height":13}},{"id":"f32c61c3-4565-4ac3-9df7-1bd6a522081a","block_type":"box","text":"principal and the payment of interest. Revenue or special obligation bonds are payable only from the revenues derived from a","page_number":524,"box":{"x":45,"y":149,"width":870,"height":12}},{"id":"dfa1e818-790b-4b42-ad5e-c0221fd07ef6","block_type":"box","text":"particular facility or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source","page_number":524,"box":{"x":45,"y":164,"width":887,"height":13}},{"id":"fefc0515-f941-4997-93b8-ce217555c5da","block_type":"box","text":"such as from the user of the facility being financed. Private activity bonds (or “industrial development bonds” under pre-1986 law)","page_number":524,"box":{"x":46,"y":180,"width":907,"height":12}},{"id":"3300f9ae-5bc7-4524-9bf9-acc58fcca33b","block_type":"box","text":"are in most cases revenue bonds and do not generally constitute the pledge of the credit or taxing power of the issuer of such","page_number":524,"box":{"x":46,"y":195,"width":863,"height":13}},{"id":"fd4c50f3-6eeb-4669-8848-b48041a48312","block_type":"box","text":"bonds. The repayment of the principal and the payment of interest on such private activity bonds depends solely on the ability of","page_number":524,"box":{"x":46,"y":211,"width":893,"height":12}},{"id":"9560af65-eac2-41cf-8667-a4d405e5aa10","block_type":"box","text":"the user of the facilities financed by the bonds to meet its financial ob","page_number":524,"box":{"x":45,"y":226,"width":480,"height":13}},{"id":"9ee9b0f7-79a8-4907-9118-c41dc437819c","block_type":"box","text":"ligation and the pledge, if any, of real and personal property","page_number":524,"box":{"x":526,"y":226,"width":417,"height":13}},{"id":"d694a7d1-59ff-48b8-a5ad-022e3a5a0b6c","block_type":"box","text":"so financed as security for such payment. In addition, private activity bonds may pay interest that is subject to the Federal","page_number":524,"box":{"x":46,"y":242,"width":842,"height":12}},{"id":"c8b8e6b3-3764-454f-8f6e-46ec38524369","block_type":"box","text":"alternative minimum tax. A Fund’s portfolio may include “moral","page_number":524,"box":{"x":46,"y":257,"width":452,"height":13}},{"id":"ae0ff312-a296-4403-8831-33c81d8d644f","block_type":"box","text":"obligation” bonds, which are normally issued by special purpose","page_number":524,"box":{"x":503,"y":257,"width":448,"height":13}},{"id":"c28f9306-65d7-40cc-8e11-dfa381e0390a","block_type":"box","text":"public authorities. If an issuer of moral obligation bonds is unable to meet its debt service obligations from current revenues, it","page_number":524,"box":{"x":45,"y":273,"width":877,"height":12}},{"id":"ada66c75-aacb-4273-82b6-0f89f3a7875a","block_type":"box","text":"may draw on a reserve fund, the restoration of which is a moral commitment but not a legal obligation of a state or municipality.","page_number":524,"box":{"x":45,"y":288,"width":897,"height":13}},{"id":"301817fb-cefd-4432-b8fc-41b5c20ba330","block_type":"box","text":"Yields on Municipal Securities are dependent on a variety of fa","page_number":524,"box":{"x":45,"y":311,"width":436,"height":13}},{"id":"bbe536c2-31c9-427c-b0ba-e3f2c4dbdf58","block_type":"box","text":"ctors, including the general condition of the money market and of","page_number":524,"box":{"x":481,"y":311,"width":457,"height":13}},{"id":"4b6803f4-19b3-41ca-8072-d7762fbed9dc","block_type":"box","text":"the municipal bond market, the size of a particular offering, the maturity of the obligation, and the rating of the issuer. The ability","page_number":524,"box":{"x":45,"y":327,"width":903,"height":13}},{"id":"242d8511-4560-4047-9414-194551e24ab0","block_type":"box","text":"of a Fund to achieve its investment objective is also dependent on the continuing ability of the issuers of the Municipal Securities in","page_number":524,"box":{"x":46,"y":342,"width":906,"height":13}},{"id":"6afb4bf5-3335-439a-8d3d-d7bd0c8f8009","block_type":"box","text":"which the Fund invests to meet their obligations for the paym","page_number":524,"box":{"x":45,"y":358,"width":427,"height":13}},{"id":"af66e7d0-2fea-4805-9aa3-875aed2b0887","block_type":"box","text":"ent of interest and the repayment of principal when due. There are","page_number":524,"box":{"x":473,"y":358,"width":460,"height":13}},{"id":"1622550c-928b-4186-8a5c-6337c22c0130","block_type":"box","text":"variations in the risks involved in holding Municipal Securities, both within a particular classification and between classifications,","page_number":524,"box":{"x":45,"y":373,"width":897,"height":13}},{"id":"77188fb6-335c-482f-a0de-43556e711e25","block_type":"box","text":"depending on numerous factors. Furthermore, the rights of hold","page_number":524,"box":{"x":46,"y":389,"width":443,"height":13}},{"id":"68cfcbca-2e3c-4a65-a3af-4cd74c89e45c","block_type":"box","text":"ers of Municipal Securities and the obligations of the issuers of","page_number":524,"box":{"x":490,"y":389,"width":435,"height":13}},{"id":"fb56b5e1-992d-4d58-99e7-ca848fa67a13","block_type":"box","text":"such Municipal Securities may be subject to applicable bankruptcy","page_number":524,"box":{"x":46,"y":404,"width":461,"height":13}},{"id":"319b23a1-f47e-4b8b-8a75-51a9250ca958","block_type":"box","text":", insolvency and similar laws and court decisions affecting the","page_number":524,"box":{"x":508,"y":404,"width":427,"height":13}},{"id":"cd1b3ba0-8250-46ba-b584-e6a765915fed","block_type":"box","text":"rights of creditors generally, and such laws, if any, which may be ena","page_number":524,"box":{"x":45,"y":420,"width":479,"height":13}},{"id":"690953cd-1550-4285-a58c-a6548aedcfc1","block_type":"box","text":"cted by Congress or state legislatures affecting specifically the","page_number":524,"box":{"x":524,"y":420,"width":425,"height":13}},{"id":"875890a3-6900-4f8f-96b6-6c9db868bc04","block_type":"box","text":"rights of holders of Municipal Securities.","page_number":524,"box":{"x":45,"y":435,"width":281,"height":13}},{"id":"539777bf-3def-4581-9ec6-9c1eb47b5920","block_type":"box","text":"A Fund’s ability to distribute dividends exempt from Federal income tax will depend on the exclusion from gross income of the","page_number":524,"box":{"x":45,"y":459,"width":882,"height":12}},{"id":"dc426962-1d46-46e4-a387-b04856e1444c","block_type":"box","text":"interest income that it receives on the Municipal Securities in which it invests. A Fund will only purchase a Municipal Security if it","page_number":524,"box":{"x":45,"y":474,"width":902,"height":13}},{"id":"99440491-62c1-4e36-be41-59d09a7c52e0","block_type":"box","text":"is accompanied by an opinion of counsel to the issuer, which is delivered on the date of issuance of that security, that interest on","page_number":524,"box":{"x":45,"y":490,"width":889,"height":12}},{"id":"e4a1e753-07ad-4401-85b3-129e237774f0","block_type":"box","text":"such securities is excludable from gross income for Federal income tax purposes (the “tax exemption opinion”).","page_number":524,"box":{"x":46,"y":505,"width":774,"height":13}},{"id":"593b02ce-d4f3-4f39-866b-1ec78f21d839","block_type":"box","text":"Events occurring after the date of issuance of the Municipal Securities, however, may cause the interest on such securities to be","page_number":524,"box":{"x":45,"y":528,"width":877,"height":13}},{"id":"4477549a-1b18-411e-8621-f7ad73e07ff5","block_type":"box","text":"includable in gross income for Federal income tax purposes. For example, the Internal Revenue Code of 1986, as amended (the","page_number":524,"box":{"x":45,"y":544,"width":882,"height":13}},{"id":"dcf51bf6-cf7e-42be-bcd4-84d37a3f7afd","block_type":"box","text":"“Code”) establishes certain requirements, such as restrictions as","page_number":524,"box":{"x":47,"y":559,"width":440,"height":13}},{"id":"8322d908-5678-495d-9e8f-7946d7b6942f","block_type":"box","text":"to the investment of the proceeds of the issue, limitations as to the","page_number":524,"box":{"x":492,"y":559,"width":458,"height":13}},{"id":"6ba13e09-e2d4-4289-8bb2-40a4ea48eb29","block_type":"box","text":"use of proceeds of such issue and the property financed by such","page_number":524,"box":{"x":46,"y":575,"width":438,"height":13}},{"id":"9bf6963b-5e0f-457d-869e-48b680425426","block_type":"box","text":"proceeds, and the payment of certain excess earnings to the","page_number":524,"box":{"x":489,"y":575,"width":411,"height":13}},{"id":"3b6df469-4687-4615-890f-9ff56160aea1","block_type":"box","text":"Federal government, that must be met after the issuance of the Municipal Securities for interest on such securities to remain","page_number":524,"box":{"x":45,"y":590,"width":855,"height":13}},{"id":"99cbadc7-d722-4daa-b265-531e1fbe1912","block_type":"box","text":"excludable from gross income for Federal income tax purposes. The issuers and the conduit borrowers of the Municipal Securities","page_number":524,"box":{"x":46,"y":606,"width":900,"height":13}},{"id":"2fe4b2d2-ac80-435e-bea9-d0a962381856","block_type":"box","text":"generally covenant to comply with such requirements and the tax e","page_number":524,"box":{"x":45,"y":621,"width":465,"height":13}},{"id":"d7ff4eab-8c66-4537-9b61-1ffcd6444b40","block_type":"box","text":"xemption opinion generally assumes continuing compliance","page_number":524,"box":{"x":510,"y":621,"width":414,"height":13}},{"id":"d35c7de1-bb9f-494e-b333-95be7fc29177","block_type":"box","text":"with such requirements. Failure to comply with these continuing re","page_number":524,"box":{"x":45,"y":637,"width":465,"height":13}},{"id":"e351c18b-19a1-47c7-960d-212c5ef60084","block_type":"box","text":"quirements, however, may cause the interest on such Municipal","page_number":524,"box":{"x":511,"y":637,"width":440,"height":13}},{"id":"7c715f44-6346-415b-b897-b51da9502606","block_type":"box","text":"Securities to be includable in gross income for Federal income tax purposes retroactive to their date of issue.","page_number":524,"box":{"x":46,"y":652,"width":747,"height":13}},{"id":"78d6bb09-e4ef-4278-8abe-fa8233faa84f","block_type":"box","text":"In addition, the Internal Revenue Service (“IRS”) has an ongoing enforcement program that involves the audit of tax exempt","page_number":524,"box":{"x":45,"y":676,"width":865,"height":12}},{"id":"adb56870-ed1b-4149-8f55-c175e18f6a9f","block_type":"box","text":"bonds to determine whether an issue of bonds satisfies all of the requirements that must be met for interest on such bonds to be","page_number":524,"box":{"x":46,"y":691,"width":882,"height":13}},{"id":"1591c390-09eb-4bd0-bbf7-46c4e6e8a53b","block_type":"box","text":"excludable from gross income for Federal income tax purposes.","page_number":524,"box":{"x":46,"y":707,"width":438,"height":12}},{"id":"66de4611-be4d-456c-b298-38582cd495d2","block_type":"box","text":"From time to time, some of the Municipal Securities held by a","page_number":524,"box":{"x":490,"y":707,"width":428,"height":12}},{"id":"c7248123-df79-4b96-a129-166f9a178794","block_type":"box","text":"Fund may be the subject of such an audit by the IRS, and the IRS may determine that the interest on such securities is includable in","page_number":524,"box":{"x":45,"y":722,"width":907,"height":13}},{"id":"35dba176-0c90-4756-a34e-4ac44106fc90","block_type":"box","text":"gross income for Federal income tax purposes either because the IRS has taken a legal position adverse to the conclusion reached","page_number":524,"box":{"x":45,"y":738,"width":893,"height":12}},{"id":"71b569d7-2778-457f-8ded-62d5327bf554","block_type":"box","text":"by the counsel to the issuer in the tax exemption opinion or as a result of an action taken or not taken after the date of issue of","page_number":524,"box":{"x":46,"y":753,"width":879,"height":13}},{"id":"f3ea9255-bc3f-4fe4-aa2d-8ee1da51af55","block_type":"box","text":"such obligation.","page_number":524,"box":{"x":46,"y":769,"width":109,"height":13}},{"id":"c7ac3d0d-61b3-416b-aaed-cbe4bc7e9b88","block_type":"box","text":"If interest paid on a Municipal Security in which a Fund invests is determined to be taxable subsequent to the Fund’s acquisition of","page_number":524,"box":{"x":45,"y":792,"width":908,"height":13}},{"id":"71f942dd-0c39-4907-a156-9724050907f5","block_type":"box","text":"such security, the IRS may demand that such Fund pay taxes on the affected interest income and, if the Fund agrees to do so, its","page_number":524,"box":{"x":46,"y":807,"width":885,"height":13}},{"id":"27bfdbb4-2d63-45f9-a26d-122b767ce3a1","block_type":"box","text":"yield could be adversely affected. If the interest paid on any Municipal Security held by a Fund is determined to be taxable, such","page_number":524,"box":{"x":45,"y":823,"width":887,"height":13}},{"id":"98ee6e48-7c9d-4888-bc85-2f1ae5722214","block_type":"box","text":"Fund will dispose of the security as soon as practicable. A determination that interest on a security held by a Fund is includable in","page_number":524,"box":{"x":45,"y":838,"width":899,"height":13}},{"id":"1e2ddc75-107a-4f33-a324-2416cc89dfda","block_type":"box","text":"gross income for Federal or state income tax purposes retroactively to its date of issue may, likewise, cause a portion of prior","page_number":524,"box":{"x":45,"y":854,"width":866,"height":13}},{"id":"dd35e64c-bb1f-4416-8e8f-bcf612d4179d","block_type":"box","text":"distributions received by shareholders to be taxable to those shareholders in the year of receipt.","page_number":524,"box":{"x":46,"y":869,"width":657,"height":13}},{"id":"d224d39e-4a4c-4950-8911-45ef43b36ae9","block_type":"box","text":"II-7","page_number":524,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"94eb102f-7e51-4cee-ae97-0e3f482de7ae","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":524,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"51c99c44-4090-4f06-9734-bb4eda196f60","block_type":"box","text":"From time to time, proposals have been introduced before Congress","page_number":525,"box":{"x":45,"y":79,"width":471,"height":13}},{"id":"3a076a80-3b58-4572-967d-2c9b569c9612","block_type":"box","text":"for the purpose of restricting or eliminating the Federal","page_number":525,"box":{"x":521,"y":79,"width":382,"height":13}},{"id":"178d488d-bc63-418c-8dd9-1aaa8ab9ccc6","block_type":"box","text":"income tax exclusion for interest on Municipal Securities. Similar proposals may be introduced in the future. If such a proposal","page_number":525,"box":{"x":45,"y":94,"width":881,"height":13}},{"id":"e2b30f6b-589b-4361-8911-9377c4fc1220","block_type":"box","text":"were enacted, the ability of each Fund to pay “exempt-interest dividends” would be affected adversely and the Fund would","page_number":525,"box":{"x":45,"y":110,"width":854,"height":13}},{"id":"397ce8f4-6ae8-4585-9bcb-0b527c58d557","block_type":"box","text":"re-evaluate its investment objectives and policies and consider changes in structure. See “Dividends and Taxes — Taxes.”","page_number":525,"box":{"x":45,"y":125,"width":840,"height":13}},{"id":"64eebb6b-7f91-48e8-a3a1-ff7076009ef9","block_type":"box","text":"Municipal Securities — Derivative Products","page_number":525,"box":{"x":45,"y":151,"width":304,"height":13}},{"id":"c69a09c6-2da9-434f-bd95-fa4645391554","block_type":"box","text":". Derivative Products are typically structured by a bank, broker-dealer or other","page_number":525,"box":{"x":351,"y":151,"width":545,"height":13}},{"id":"414986ed-a51d-46f7-a0ab-8ed980261094","block_type":"box","text":"financial institution. A Derivative Product generally consists of a trust or partnership through which a Fund holds an interest in","page_number":525,"box":{"x":45,"y":166,"width":883,"height":13}},{"id":"bd8ce3b2-60ab-4895-8a36-6ba55384680b","block_type":"box","text":"one or more underlying bonds coupled with a right to sell (“put”) the Fund’s interest in the underlying bonds at par plus accrued","page_number":525,"box":{"x":46,"y":182,"width":893,"height":13}},{"id":"53b35966-7b41-4cb8-8bc3-2202557d4d79","block_type":"box","text":"interest to a financial institution (a “Liquidity Provider”). Typi","page_number":525,"box":{"x":45,"y":197,"width":435,"height":13}},{"id":"c8db3a30-e9b6-4e59-8b88-c9b8a98a24ec","block_type":"box","text":"cally, a Derivative Product is structured as a trust or partnership","page_number":525,"box":{"x":481,"y":197,"width":444,"height":13}},{"id":"5d9a9179-fd00-4b8e-9f0a-85ee41a3d1ab","block_type":"box","text":"that provides for pass-through tax-exempt income. There are cu","page_number":525,"box":{"x":45,"y":213,"width":444,"height":13}},{"id":"22f54c0a-9ac7-48ba-9e51-8f46f394c436","block_type":"box","text":"rrently three principal types of derivative structures: (1) “Tender","page_number":525,"box":{"x":490,"y":213,"width":445,"height":13}},{"id":"8a54930b-878d-4a53-915d-f188fa3a7f08","block_type":"box","text":"Option Bonds,” which are instruments that grant the holder thereof the right to put an underlying bond at par plus accrued","page_number":525,"box":{"x":46,"y":228,"width":857,"height":13}},{"id":"b98c9567-180d-445d-8e84-d6644a743308","block_type":"box","text":"interest at specified intervals to a Liquidity Provider; (2) “Swap","page_number":525,"box":{"x":45,"y":244,"width":438,"height":13}},{"id":"bdbc52ed-ab23-4eee-b795-cea69a7175d6","block_type":"box","text":"Products,” in which the trust or partnership swaps the payments","page_number":525,"box":{"x":488,"y":244,"width":447,"height":13}},{"id":"843b9be2-52fd-4702-a2b1-3b3d2d8964b3","block_type":"box","text":"due on an underlying bond with a swap counterparty who agrees to pay a floating municipal money market interest rate; and (3)","page_number":525,"box":{"x":46,"y":259,"width":894,"height":13}},{"id":"fdebe7cb-eaed-40f9-b4f4-b0c6b4747921","block_type":"box","text":"“Partnerships,” which allocate to the partners portions of inco","page_number":525,"box":{"x":47,"y":275,"width":432,"height":13}},{"id":"18b510a5-47a0-4bcb-889b-e5d892406988","block_type":"box","text":"me, expenses, capital gains and losses associated with holding an","page_number":525,"box":{"x":480,"y":275,"width":449,"height":13}},{"id":"95da0b5b-f6e6-43fb-8fc9-6e9216c6f167","block_type":"box","text":"underlying bond in accordance with a governing agreement. A Fund may also invest in other forms of short term Derivative","page_number":525,"box":{"x":46,"y":290,"width":858,"height":13}},{"id":"f38700e1-8802-4709-ae63-3d4c7a0d3e6a","block_type":"box","text":"Products eligible for investment by money market funds.","page_number":525,"box":{"x":45,"y":306,"width":392,"height":13}},{"id":"0d921661-e873-448b-ae2e-624c360b9371","block_type":"box","text":"Investments in Derivative Products raise certain tax, legal, regulatory and accounting issues that may not be presented by","page_number":525,"box":{"x":45,"y":331,"width":838,"height":13}},{"id":"1388ef22-a07d-4918-9d0a-6a6962fdd625","block_type":"box","text":"investments in municipal bonds. There is some risk that certain issues could be resolved in a manner that could adversely impact","page_number":525,"box":{"x":45,"y":347,"width":890,"height":13}},{"id":"16471715-17f8-4196-82dd-e820f3bb4754","block_type":"box","text":"the performance of a Fund. For example, the tax-exempt treatment of the interest paid to holders of Derivative Products is","page_number":525,"box":{"x":45,"y":362,"width":849,"height":13}},{"id":"430753d8-fd2a-47a0-ac7e-4908aba4782a","block_type":"box","text":"premised on the legal conclusion that the holders of such Deri","page_number":525,"box":{"x":45,"y":378,"width":429,"height":13}},{"id":"08973267-aee4-458a-991c-956d315e05a8","block_type":"box","text":"vative Products have an ownership interest in the underlying bonds.","page_number":525,"box":{"x":474,"y":378,"width":469,"height":13}},{"id":"1809fac0-1bf4-4e2c-a886-7766d0252070","block_type":"box","text":"Were the IRS or any state taxing authority to issue an adverse","page_number":525,"box":{"x":45,"y":393,"width":428,"height":13}},{"id":"05a5bc11-3853-4118-92cd-1c00d1b0c44e","block_type":"box","text":"ruling or take an adverse position with respect to the taxation of","page_number":525,"box":{"x":479,"y":393,"width":447,"height":13}},{"id":"c36ca432-1950-46e6-b456-b3bfc05a7a23","block_type":"box","text":"Derivative Products, there is a risk that the interest paid on such Derivative Products or, in the case of property taxes, the value of","page_number":525,"box":{"x":45,"y":409,"width":900,"height":13}},{"id":"e6860e28-3fd7-40aa-b3e3-b011170a6734","block_type":"box","text":"such Fund to the extent represented by such Derivative Products, would be deemed taxable at the Federal and/or state level.","page_number":525,"box":{"x":46,"y":424,"width":856,"height":13}},{"id":"f1e59cc2-2021-481a-95b6-6e8c2bdefc8c","block_type":"box","text":"Before purchasing a Derivative Product, the Manager is required by the Funds’ procedures to conclude that the tax-exempt","page_number":525,"box":{"x":46,"y":450,"width":852,"height":13}},{"id":"a9fb54fe-0865-41e7-aafd-1e811b5073d3","block_type":"box","text":"security and the supporting short-term obligation involve minimal credit risks and are Eligible Securities under the Funds’","page_number":525,"box":{"x":46,"y":465,"width":840,"height":13}},{"id":"a8b536f0-c096-4533-99e4-ba04d9975f09","block_type":"box","text":"Rule 2a-7 procedures. In evaluating the creditworthiness of the e","page_number":525,"box":{"x":46,"y":481,"width":447,"height":13}},{"id":"d1f75406-9788-4b3b-afc3-71c379f97ff2","block_type":"box","text":"ntity obligated to purchase the tax-exempt security, the Manager","page_number":525,"box":{"x":494,"y":481,"width":450,"height":13}},{"id":"3f4299da-8d84-40e8-a737-07fcd25eeaf0","block_type":"box","text":"will review periodically the entity’s relevant financial information.","page_number":525,"box":{"x":45,"y":496,"width":457,"height":13}},{"id":"9ade217e-a41f-4cf8-a567-56b65117dca9","block_type":"box","text":"Municipal Notes","page_number":525,"box":{"x":45,"y":522,"width":116,"height":12}},{"id":"1f50a816-1c98-4477-8210-4bda2710257c","block_type":"box","text":". Municipal notes are shorter term municipal debt obligati","page_number":525,"box":{"x":163,"y":522,"width":402,"height":12}},{"id":"9b492e57-5258-4bc0-9565-8b0d97466d68","block_type":"box","text":"ons. They may provide interim financing in anticipation","page_number":525,"box":{"x":565,"y":522,"width":388,"height":12}},{"id":"d56fd5e0-0c56-4d7d-955e-d497a234280a","block_type":"box","text":"of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds, the note may not be fully repaid","page_number":525,"box":{"x":46,"y":537,"width":897,"height":13}},{"id":"648a271a-24d3-4be8-94f4-827398a2b19c","block_type":"box","text":"and a Fund may lose money.","page_number":525,"box":{"x":46,"y":553,"width":198,"height":12}},{"id":"d5008762-e2b2-4cc3-9a42-33e8ac1f54e9","block_type":"box","text":"Municipal Commercial Paper","page_number":525,"box":{"x":45,"y":578,"width":206,"height":13}},{"id":"d883d218-4ed2-41ba-80d6-4ed837a6fb35","block_type":"box","text":". Municipal commercial paper is generally unsecured and issued to meet short term financing needs.","page_number":525,"box":{"x":252,"y":578,"width":690,"height":13}},{"id":"7921cadd-dde4-4ef4-9002-54504040d600","block_type":"box","text":"The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s bankruptcy, unsecured creditors are","page_number":525,"box":{"x":45,"y":594,"width":864,"height":12}},{"id":"62c881d6-179c-47ac-a170-fd4457e8c7c0","block_type":"box","text":"repaid only after the secured creditors are paid out of the assets, if any, that remain.","page_number":525,"box":{"x":45,"y":609,"width":580,"height":13}},{"id":"10fb44c8-f69b-4b21-817c-5a0fb9f41800","block_type":"box","text":"Municipal Lease Obligations","page_number":525,"box":{"x":45,"y":635,"width":201,"height":12}},{"id":"c8bb1aad-5134-49d8-9f9e-38358557d975","block_type":"box","text":". Also included within the general category of State Municipal Securities are Certificates of","page_number":525,"box":{"x":248,"y":635,"width":626,"height":12}},{"id":"8894e14a-fd62-40a2-b679-39fe25e3c0c6","block_type":"box","text":"Participation (“COPs”) issued by governmental authorities or en","page_number":525,"box":{"x":45,"y":650,"width":449,"height":13}},{"id":"cdec8956-6ce9-4330-8c65-d06e0f7cf609","block_type":"box","text":"tities to finance the acquisition or construction of equipment, land","page_number":525,"box":{"x":494,"y":650,"width":459,"height":13}},{"id":"6aec0e0a-b218-4978-8ae3-8de6cf08a74d","block_type":"box","text":"and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a conditional sales contract","page_number":525,"box":{"x":46,"y":666,"width":870,"height":12}},{"id":"d534a7da-bd0b-44ea-91dd-226266f60689","block_type":"box","text":"(hereinafter collectively called “lease obligations”) relating t","page_number":525,"box":{"x":46,"y":681,"width":413,"height":13}},{"id":"ffd6887a-7d64-452f-893b-e2ed9baeb9a0","block_type":"box","text":"o such equipment, land or facilities. Although lease obligations do not","page_number":525,"box":{"x":460,"y":681,"width":485,"height":13}},{"id":"ac4fc6b3-9d6f-451b-b93a-2237245b3556","block_type":"box","text":"constitute general obligations of the issuer for which the issuer’s","page_number":525,"box":{"x":45,"y":697,"width":443,"height":12}},{"id":"30fdc5d5-b184-4878-86f4-76181245b19c","block_type":"box","text":"unlimited taxing power is pledged, a lease obligation is frequently","page_number":525,"box":{"x":493,"y":697,"width":455,"height":12}},{"id":"f4c6fe45-57ff-4251-8b43-5efa4282bc94","block_type":"box","text":"backed by the issuer’s covenant to budget for, appropriate and make the payments due under the lease obligation. However,","page_number":525,"box":{"x":46,"y":712,"width":861,"height":13}},{"id":"323b749b-842b-47ef-a4ce-74ebca0ec090","block_type":"box","text":"certain lease obligations contain “non-appropriation” clauses th","page_number":525,"box":{"x":45,"y":728,"width":445,"height":12}},{"id":"f0e3b8a9-c7d5-4208-97d8-da5fe7742ae3","block_type":"box","text":"at provide that the issuer has no obligation to make lease or","page_number":525,"box":{"x":491,"y":728,"width":414,"height":12}},{"id":"42e7e621-586c-4398-9679-412eb7f64de8","block_type":"box","text":"installment purchase payments in future years unless money is appropriated for such purpose on a yearly basis. Although “non","page_number":525,"box":{"x":45,"y":743,"width":886,"height":13}},{"id":"2d87ab16-8e2e-4d62-a75a-35db2713d456","block_type":"box","text":"appropriation” lease obligations are secured by the leased property, disposition of the property in the event of foreclosure might","page_number":525,"box":{"x":46,"y":759,"width":886,"height":12}},{"id":"30916a8b-9e04-4722-9c6f-879fc07c69d9","block_type":"box","text":"prove difficult. The securities represent a type of financing that has not yet developed the depth of marketability associated with","page_number":525,"box":{"x":45,"y":774,"width":886,"height":13}},{"id":"6d641f37-673d-4a68-b610-af645e967586","block_type":"box","text":"more conventional securities. Certain investments in lease obligations may be illiquid.","page_number":525,"box":{"x":45,"y":790,"width":592,"height":12}},{"id":"3b6de231-200f-417e-a29f-be995923e9d7","block_type":"box","text":"Municipal Securities — Short-Term Maturity Standards","page_number":525,"box":{"x":45,"y":815,"width":386,"height":13}},{"id":"4dd4feb1-ab41-44e5-8976-39bec1750e43","block_type":"box","text":". All of the investments of a Fund in Municipal Securities will be in","page_number":525,"box":{"x":432,"y":815,"width":462,"height":13}},{"id":"6ebddf13-3ca8-4dff-8c4c-7daf8f0b3550","block_type":"box","text":"securities with remaining maturities of 397 days or less. The dollar-weighted average maturity of each Fund’s portfolio will be","page_number":525,"box":{"x":46,"y":831,"width":873,"height":12}},{"id":"3cf2992e-3837-4397-b10c-684245c3c5b6","block_type":"box","text":"60 days or less. For purposes of this investment policy, an obligation will be treated as having a maturity earlier than its stated","page_number":525,"box":{"x":46,"y":846,"width":874,"height":13}},{"id":"e2b4494d-0dcb-411f-959b-b95fa3a204ff","block_type":"box","text":"maturity date if such obligation has technical features that, i","page_number":525,"box":{"x":45,"y":862,"width":416,"height":12}},{"id":"34415cf4-6fe7-4908-8788-10209948eca4","block_type":"box","text":"n the judgment of the Manager, will result in the obligation being","page_number":525,"box":{"x":462,"y":862,"width":454,"height":12}},{"id":"192c8782-bdd7-41bc-82db-e83f04b3ea25","block_type":"box","text":"valued in the market as though it has such earlier maturity.","page_number":525,"box":{"x":45,"y":877,"width":409,"height":13}},{"id":"2ea2c7be-5493-4ba6-b930-fe891eec6d9a","block_type":"box","text":"II-8","page_number":525,"box":{"x":487,"y":917,"width":24,"height":9}},{"id":"f25791ae-dc11-4c4a-82a6-6841bbec23c8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":525,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"48d00b75-412e-4993-aedf-acde526fd4d2","block_type":"box","text":"The maturities of Variable Rate Demand Obligations (“VRDOs”) are deemed to be the longer of (i) the notice period required","page_number":526,"box":{"x":45,"y":79,"width":878,"height":13}},{"id":"2dd38f16-43f6-473a-b887-128c7a3d386c","block_type":"box","text":"before a Fund is entitled to receive payment of the principal amount of the VRDOs on demand or (ii) the period remaining until","page_number":526,"box":{"x":46,"y":94,"width":887,"height":13}},{"id":"2aba9ce4-4a6a-48a7-96ad-00ba1e994852","block_type":"box","text":"the VRDO’s next interest rate adjustment. If not redeemed by a F","page_number":526,"box":{"x":45,"y":110,"width":454,"height":13}},{"id":"9d0ed535-98c6-4a37-ba46-10049f412c89","block_type":"box","text":"und through the demand feature, VRDOs mature on a specified","page_number":526,"box":{"x":500,"y":110,"width":443,"height":13}},{"id":"a3227021-701d-451b-bf3a-bc20fffe9426","block_type":"box","text":"date, which may range up to 30 years from the date of issuance. See “VRDOs” below.","page_number":526,"box":{"x":46,"y":125,"width":599,"height":13}},{"id":"b130268c-59e4-4147-80bb-2579cbae6855","block_type":"box","text":"Municipal Securities — Quality Standards","page_number":526,"box":{"x":45,"y":150,"width":293,"height":13}},{"id":"75049f45-d451-41e5-a08e-45a75e71096f","block_type":"box","text":". A Fund’s portfolio investments in municipal notes and short term tax-exempt","page_number":526,"box":{"x":339,"y":150,"width":545,"height":13}},{"id":"75f15c17-02db-493b-ba5f-7980d1de0280","block_type":"box","text":"commercial paper will be limited to those obligations that are (i) secu","page_number":526,"box":{"x":45,"y":165,"width":480,"height":13}},{"id":"a238cb4d-1ea0-4205-8c53-dfbaf3f3590c","block_type":"box","text":"red by a pledge of the full faith and credit of the United States","page_number":526,"box":{"x":526,"y":165,"width":427,"height":13}},{"id":"764c6aeb-9e68-4334-97ed-2d03855c3766","block_type":"box","text":"or (ii) otherwise are determined by the Manager to present minimal credit risks to the Fund. A Fund’s investments in municipal","page_number":526,"box":{"x":46,"y":181,"width":881,"height":13}},{"id":"44da69f6-3275-4f9c-9250-c9f7bb3930d6","block_type":"box","text":"bonds will be in securities that have been determined by the Manager to present minimal credit risks to the Fund. In addition,","page_number":526,"box":{"x":46,"y":196,"width":869,"height":13}},{"id":"36cac281-8361-40b2-a21a-b1cd410170d5","block_type":"box","text":"certain Funds may require that portfolio investments (or their issuers) receive minimum credit ratings from one or more NRSROs,","page_number":526,"box":{"x":45,"y":212,"width":902,"height":13}},{"id":"7558fe11-1bd7-4438-8c0f-7060f31bc616","block_type":"box","text":"or if not rated, are determined by the Manager to be of comparable quality to securities that have received such rating(s). Certain","page_number":526,"box":{"x":46,"y":227,"width":895,"height":13}},{"id":"89393e1f-f23e-495c-9903-3c03b68b6955","block_type":"box","text":"tax-exempt obligations (primarily VRDOs) may be entitled to the be","page_number":526,"box":{"x":45,"y":243,"width":476,"height":13}},{"id":"048f159d-88aa-4f07-bf47-575cafca4fcc","block_type":"box","text":"nefit of letters of credit or similar credit enhancements issued","page_number":526,"box":{"x":522,"y":243,"width":421,"height":10}},{"id":"67b46e13-21e5-4bbc-857b-6656d9fdb0ab","block_type":"box","text":"by financial institutions. In such instances, in assessing the quality","page_number":526,"box":{"x":46,"y":258,"width":454,"height":13}},{"id":"f1d51b3f-bc36-4691-a3c0-56dde70fdc0f","block_type":"box","text":"of such instruments, the Trustees and the Manager will take into","page_number":526,"box":{"x":505,"y":258,"width":448,"height":13}},{"id":"64ca2f54-ae50-4d21-84bb-04ccce7fe23c","block_type":"box","text":"account not only the creditworthiness of the issuers, but also the","page_number":526,"box":{"x":46,"y":274,"width":445,"height":13}},{"id":"38c0fe84-a666-4519-8889-1ebbfb40c639","block_type":"box","text":"creditworthiness and type of obligation of the financial","page_number":526,"box":{"x":496,"y":274,"width":381,"height":13}},{"id":"33bfbfcd-e1d9-4f82-bdcd-9c68eaf69d34","block_type":"box","text":"institution. The type of obligation of the financial institution con","page_number":526,"box":{"x":45,"y":289,"width":448,"height":13}},{"id":"46bcd61b-6338-4bdd-940a-920a1b738886","block_type":"box","text":"cerns, for example, whether the letter of credit or similar credit","page_number":526,"box":{"x":494,"y":289,"width":436,"height":13}},{"id":"39fa5b58-bc7f-452f-968d-6947e1c92e24","block_type":"box","text":"enhancement being issued is conditional or unconditional. Fo","page_number":526,"box":{"x":46,"y":305,"width":424,"height":13}},{"id":"9d8f0785-60a2-4517-8bd7-c9cd0a3c56b8","block_type":"box","text":"r a description of debt ratings, see Appendix A —“Description of","page_number":526,"box":{"x":471,"y":305,"width":453,"height":13}},{"id":"7e336152-08d1-4abc-a681-b5a0c41de602","block_type":"box","text":"Bond Ratings.”","page_number":526,"box":{"x":46,"y":320,"width":105,"height":13}},{"id":"7f1a882d-323e-4c42-8c36-f60d4029974f","block_type":"box","text":"Certain Funds may not invest in any security issued by a depository","page_number":526,"box":{"x":46,"y":345,"width":467,"height":13}},{"id":"3dc52318-5149-4e4e-9e3a-b24ea0b59fed","block_type":"box","text":"institution unless such institution is organized and operating in","page_number":526,"box":{"x":518,"y":345,"width":435,"height":13}},{"id":"35d4ff82-08f5-4722-addd-5e15ddb663d7","block_type":"box","text":"the United States, has total assets of at least $1 billion and is fe","page_number":526,"box":{"x":45,"y":360,"width":434,"height":13}},{"id":"cbb626df-8362-4d5a-9d19-5e8600eeef7d","block_type":"box","text":"derally insured. While the types of money market securities in","page_number":526,"box":{"x":480,"y":360,"width":428,"height":13}},{"id":"08ce1c8d-a4ad-4565-8ef3-faf601e6ad6a","block_type":"box","text":"which the Funds invest generally are considered to have low princip","page_number":526,"box":{"x":45,"y":376,"width":470,"height":13}},{"id":"69195d69-5967-4581-a87a-cfd8ff3e1339","block_type":"box","text":"al risk, such securities are not completely risk free. There is a","page_number":526,"box":{"x":516,"y":376,"width":420,"height":13}},{"id":"55eecdff-db0c-4b71-a021-d8c88379a722","block_type":"box","text":"risk of the failure of issuers or credit enhancers to meet thei","page_number":526,"box":{"x":45,"y":391,"width":411,"height":10}},{"id":"aadfc244-a78c-47da-8eac-3e103ea4ccd3","block_type":"box","text":"r principal and interest obligations. With respect to repurchase","page_number":526,"box":{"x":456,"y":391,"width":433,"height":13}},{"id":"09c31bef-f140-4976-add6-017afe84eaae","block_type":"box","text":"agreements and purchase and sale contracts, there is also the risk o","page_number":526,"box":{"x":46,"y":407,"width":462,"height":13}},{"id":"5dd3af9e-11e2-4c12-a240-1c5cf3d83c75","block_type":"box","text":"f the failure of the parties involved to repurchase at the agreed","page_number":526,"box":{"x":509,"y":407,"width":435,"height":13}},{"id":"9b7fd9d9-a79e-4fb5-a321-268f08b4150a","block_type":"box","text":"upon price, in which event each Fund may suffer time delays and incur costs or possible losses in connection with such","page_number":526,"box":{"x":46,"y":422,"width":821,"height":13}},{"id":"50666153-a641-4b80-84c6-7749724d3d5b","block_type":"box","text":"transactions.","page_number":526,"box":{"x":45,"y":439,"width":87,"height":9}},{"id":"06883390-75b3-42fe-8242-fc9b94b342a6","block_type":"box","text":"Municipal Securities — Other Factors","page_number":526,"box":{"x":45,"y":462,"width":263,"height":13}},{"id":"902413e3-8998-4d9c-a4fa-2ef3b9fa0118","block_type":"box","text":". Management of the Funds will endeavor to be as fully invested as reasonably practicable in","page_number":526,"box":{"x":310,"y":462,"width":639,"height":13}},{"id":"4da0e2d9-b06c-4bde-a4e3-91a5075b460d","block_type":"box","text":"order to maximize the yield on each Fund’s portfolio. Not all short term municipal securities trade on the basis of same day","page_number":526,"box":{"x":46,"y":478,"width":856,"height":13}},{"id":"61ed40a2-2efc-47e9-a6d7-21d8030e7d3e","block_type":"box","text":"settlements and, accordingly, a portfolio of such securities cannot be managed on a daily basis with the same flexibility as a","page_number":526,"box":{"x":46,"y":493,"width":854,"height":13}},{"id":"710cfa9e-def1-45dd-b9a3-459945c365d4","block_type":"box","text":"portfolio of money market securities, which can be bought and sold on a same day basis. There may be times when a Fund has","page_number":526,"box":{"x":45,"y":509,"width":880,"height":13}},{"id":"83c43d88-b1fe-4ae4-b987-100d85e4936c","block_type":"box","text":"uninvested cash resulting from an influx of cash due to large pu","page_number":526,"box":{"x":46,"y":524,"width":440,"height":13}},{"id":"ea9cb1e2-2d11-41f9-9635-a1f930d81f0f","block_type":"box","text":"rchases of shares or the maturing of portfolio securities. A Fund","page_number":526,"box":{"x":487,"y":524,"width":442,"height":13}},{"id":"17ffba01-f568-4e27-adea-f319ed2aff96","block_type":"box","text":"also may be required to maintain cash reserves or incur temporar","page_number":526,"box":{"x":46,"y":540,"width":451,"height":13}},{"id":"c7a3b6fa-8f9f-4269-a81a-1e566829262b","block_type":"box","text":"y bank borrowings to make redemption payments, which are","page_number":526,"box":{"x":498,"y":540,"width":424,"height":13}},{"id":"6b20ee31-062a-4046-9d3c-efa72560b894","block_type":"box","text":"made on the same day the redemption request is received. Such in","page_number":526,"box":{"x":45,"y":555,"width":455,"height":13}},{"id":"2c7c04bf-2a74-41ce-b9c3-8d2c646481f5","block_type":"box","text":"ability to be invested fully would lower the yield on such Fund’s","page_number":526,"box":{"x":501,"y":555,"width":443,"height":13}},{"id":"71329a6a-ddf1-4f1f-bb14-5c16f911ff6e","block_type":"box","text":"portfolio.","page_number":526,"box":{"x":45,"y":571,"width":65,"height":13}},{"id":"1fa1d59b-6e69-4e2b-909e-a07735873b19","block_type":"box","text":"Because certain Funds may at times invest a substantial portion of their assets in Municipal Securities secured by bank letters of","page_number":526,"box":{"x":46,"y":595,"width":883,"height":13}},{"id":"e178baba-495a-491a-adb5-aea89f5b54f0","block_type":"box","text":"credit or guarantees, an investment in a Fund should be made with an","page_number":526,"box":{"x":45,"y":611,"width":485,"height":13}},{"id":"6d423da7-2a55-4a3c-8bee-4b52a9b277e8","block_type":"box","text":"understanding of the characteristics of the banking industry","page_number":526,"box":{"x":535,"y":611,"width":413,"height":13}},{"id":"56570803-62d1-4192-bd81-fe0be9d48320","block_type":"box","text":"and the risks that such an investment in such credit enhanced securities may entail. Banks are subject to extensive governmental","page_number":526,"box":{"x":46,"y":626,"width":883,"height":13}},{"id":"a2aacab7-18fe-43ec-be3a-d7c5635c31bd","block_type":"box","text":"regulations that may limit both the amounts and types of loans","page_number":526,"box":{"x":45,"y":642,"width":437,"height":13}},{"id":"9bd90e8b-cb5e-4dba-8bde-a0723d0f4ef6","block_type":"box","text":"and other financial commitments that may be made and interest","page_number":526,"box":{"x":487,"y":642,"width":444,"height":13}},{"id":"e9d9ff20-0d73-4bae-8a2c-b699447cc5bf","block_type":"box","text":"rates and fees that may be charged. The profitability of the banking industry is largely dependent on the availability and cost of","page_number":526,"box":{"x":45,"y":657,"width":883,"height":13}},{"id":"0d9ec8e4-6a3f-46eb-b836-083bfac4021d","block_type":"box","text":"capital funds for the purpose of financing lending operations under prevailing money market conditions. Furthermore, general","page_number":526,"box":{"x":45,"y":673,"width":876,"height":13}},{"id":"be493aa4-adf1-4807-9148-01dfe1cafe0c","block_type":"box","text":"economic conditions play an important part in the operations of this industry and exposure to credit losses arising from possible","page_number":526,"box":{"x":46,"y":688,"width":888,"height":13}},{"id":"c32494b7-34a1-4047-a778-f67a66e626ff","block_type":"box","text":"financial difficulties of borrowers might affect a ba","page_number":526,"box":{"x":45,"y":704,"width":352,"height":13}},{"id":"f86787be-83d8-4d62-8de0-27c321bf28b8","block_type":"box","text":"nk’s ability to meet its obligations under a letter of credit.","page_number":526,"box":{"x":398,"y":704,"width":397,"height":13}},{"id":"18ba0dcc-6a52-4879-a87c-13383a091e2a","block_type":"box","text":"Changes to the Code may limit the types and volume of securities","page_number":526,"box":{"x":46,"y":728,"width":453,"height":13}},{"id":"a0c3ac90-ecec-4233-9152-1233b821a059","block_type":"box","text":"qualifying for the Federal income tax exemption of interest; this","page_number":526,"box":{"x":504,"y":728,"width":442,"height":13}},{"id":"19aae361-f1a0-4e85-8c29-a49a8daa261c","block_type":"box","text":"may affect the availability of Municipal Securities for investment by the Funds, which could, in turn, have a negative impact on the","page_number":526,"box":{"x":45,"y":744,"width":907,"height":13}},{"id":"113f8647-2cd0-4b86-b724-9bdcb61c2f74","block_type":"box","text":"yield of the portfolios. A Fund reserves the right to suspend or other","page_number":526,"box":{"x":45,"y":759,"width":472,"height":13}},{"id":"b34b1604-38d8-4a6e-a662-ee2c1d3aafb7","block_type":"box","text":"wise limit sales of its shares if, as a result of difficulties in","page_number":526,"box":{"x":517,"y":759,"width":395,"height":13}},{"id":"3f9fec8f-6d6d-4c87-8ca6-ec88f7d91078","block_type":"box","text":"acquiring portfolio securities or otherwise, it is determined that it is not in the interests of the Fund’s shareholders to issue","page_number":526,"box":{"x":46,"y":775,"width":842,"height":13}},{"id":"b92c2304-ac41-4a58-a472-591f2b5e36b6","block_type":"box","text":"additional shares.","page_number":526,"box":{"x":46,"y":790,"width":120,"height":10}},{"id":"63899365-c8ed-4884-a50a-4690fc9b0193","block_type":"box","text":"VRDOs","page_number":526,"box":{"x":47,"y":815,"width":56,"height":10}},{"id":"43bb4532-f305-4f94-b008-619845d832b7","block_type":"box","text":". VRDOs are tax-exempt obligations that contain a floatin","page_number":526,"box":{"x":104,"y":815,"width":405,"height":13}},{"id":"e5c07b85-f762-48d1-983d-0de2933d50c8","block_type":"box","text":"g or variable interest rate adjustment formula and right of","page_number":526,"box":{"x":510,"y":815,"width":402,"height":13}},{"id":"2a40531b-5b7d-494f-87b7-cf19599f3d70","block_type":"box","text":"demand on the part of the holder thereof to receive payment of the unpaid balance plus accrued interest upon a short notice","page_number":526,"box":{"x":46,"y":830,"width":858,"height":13}},{"id":"f618b4fc-d61f-48a1-b55e-5543901ad7cf","block_type":"box","text":"period not to exceed seven days. There is, however, the possibility","page_number":526,"box":{"x":45,"y":846,"width":457,"height":13}},{"id":"a84db8af-38cd-4518-9575-45f57ff7c6dc","block_type":"box","text":"that because of default or insolvency the demand feature of","page_number":526,"box":{"x":507,"y":846,"width":411,"height":13}},{"id":"d0ea248a-1e34-4bb8-90ca-4c57ac45349a","block_type":"box","text":"VRDOs may not be honored. The interest rates are adjustable at periodic intervals to some prevailing market rate of the VRDOs","page_number":526,"box":{"x":45,"y":861,"width":894,"height":13}},{"id":"d2c0683c-8516-41ea-9924-0b1d4858073e","block_type":"box","text":"at approximately the par value of the VRDOs on the adjustment date. The adjustment may be based upon the Securities Industry","page_number":526,"box":{"x":46,"y":877,"width":896,"height":13}},{"id":"8f031731-4c9a-48d3-a874-8b60e68a23d9","block_type":"box","text":"II-9","page_number":526,"box":{"x":487,"y":917,"width":25,"height":9}},{"id":"54374e4e-f613-4a8c-8ec6-27f943ae3972","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":526,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"533efb59-6834-4ffe-916c-349a97e86c65","block_type":"box","text":"and Financial Markets Association (“SIFMA”) Municipal Swap Index or some other appropriate interest rate adjustment index.","page_number":527,"box":{"x":46,"y":79,"width":888,"height":13}},{"id":"2a812334-8dba-4981-853e-bf92e0e5ed18","block_type":"box","text":"Each Fund may invest in all types of tax-exempt instruments currently outstanding or to be issued in the future that satisfy its","page_number":527,"box":{"x":45,"y":94,"width":869,"height":13}},{"id":"c1157ce3-896b-491d-b6f6-20695ee02baf","block_type":"box","text":"short term maturity and quality standards.","page_number":527,"box":{"x":46,"y":110,"width":294,"height":13}},{"id":"e95385df-6b8d-428f-8aa6-83828dc1be46","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, the","page_number":527,"box":{"x":46,"y":132,"width":439,"height":12}},{"id":"6280d26a-f14c-4869-9b6d-444af16bdb77","block_type":"box","text":"VRDOs are not comparable to fixed rate securities. A Fund’s yield","page_number":527,"box":{"x":490,"y":132,"width":461,"height":12}},{"id":"f88fa790-6e3e-4c6c-b163-e659ef0d5853","block_type":"box","text":"on VRDOs will decline and its shareholders will forego the opportun","page_number":527,"box":{"x":46,"y":147,"width":479,"height":13}},{"id":"6c990484-0777-4327-8fd8-9d780f3a021d","block_type":"box","text":"ity for capital appreciation during periods when prevailing","page_number":527,"box":{"x":525,"y":147,"width":405,"height":13}},{"id":"53b404df-11e7-4e05-841b-083120d7e3ba","block_type":"box","text":"interest rates have declined. On the other hand, during periods where prevailing interest rates have increased, a Fund’s yield on","page_number":527,"box":{"x":45,"y":163,"width":879,"height":12}},{"id":"6991e0ec-0f62-489b-bafc-47640ba13b0c","block_type":"box","text":"VRDOs will increase and its shareholders will have a reduced risk of capital depreciation.","page_number":527,"box":{"x":45,"y":178,"width":621,"height":13}},{"id":"eba9c83d-2c98-468e-b0fb-a8de6e6e37cb","block_type":"box","text":"Negative Interest Rate Scenarios.","page_number":527,"box":{"x":45,"y":201,"width":230,"height":12}},{"id":"80e9c2ed-0751-40d3-9fad-321ff674ac44","block_type":"box","text":"Should a negative interest rate scenario ever occur that causes a government or retail money","page_number":527,"box":{"x":282,"y":200,"width":636,"height":13}},{"id":"b44222b1-7a62-4088-b18a-d968a85c9e2e","block_type":"box","text":"market fund to have a negative gross yield, the fund may account for the negative gross yield by either using a floating NAV or a","page_number":527,"box":{"x":45,"y":216,"width":893,"height":12}},{"id":"54af85c6-ed9e-4f44-af7d-0ad5badc9e76","block_type":"box","text":"reverse distribution mechanism that seeks to maintain a stable ne","page_number":527,"box":{"x":45,"y":231,"width":451,"height":10}},{"id":"2567eb2f-13a6-4f9f-b21a-3de327d5c5fb","block_type":"box","text":"t asset value of the fund by cancelling shareholders’ shares in the","page_number":527,"box":{"x":496,"y":231,"width":447,"height":13}},{"id":"1d972792-974c-4bb6-a20c-ef55ce8ff67b","block_type":"box","text":"amount of the negative gross yield. If a fund converts to a floating NAV, any losses the fund experiences due to negative interest","page_number":527,"box":{"x":46,"y":247,"width":887,"height":12}},{"id":"3223a6a6-5015-4e23-9f13-620b5d5a22f4","block_type":"box","text":"rates will be reflected in a declining NAV per share. Under a reverse distribution mechanism, shareholders in a fund would observe","page_number":527,"box":{"x":45,"y":262,"width":908,"height":13}},{"id":"80f20624-5133-4576-9d4e-41a2f8f19b97","block_type":"box","text":"a stable share price but a declining number of shares for their investment. This means that such an investor would lose money","page_number":527,"box":{"x":46,"y":278,"width":871,"height":12}},{"id":"67c22118-6e91-44e0-b6c0-19dd0c89cd58","block_type":"box","text":"when the fund cancels shares. In either situation, the Board will n","page_number":527,"box":{"x":45,"y":293,"width":453,"height":12}},{"id":"b4a1dd28-3134-4c76-971c-d3ff6672e833","block_type":"box","text":"eed to determine that the approach is in the best interests of the","page_number":527,"box":{"x":499,"y":293,"width":439,"height":13}},{"id":"08800249-f737-4fc4-a65b-688feb20a726","block_type":"box","text":"fund and will need to ensure shareholders are provided adequate disclosures around the consequences of the approach chosen by","page_number":527,"box":{"x":45,"y":309,"width":895,"height":12}},{"id":"71455e9a-74c9-46c0-bdfb-07e7486a3e96","block_type":"box","text":"the Board for the fund.","page_number":527,"box":{"x":45,"y":324,"width":159,"height":10}},{"id":"800125d9-86b0-4653-8f09-bf177adec12f","block_type":"box","text":"Operational and Technology Risks.","page_number":527,"box":{"x":46,"y":346,"width":248,"height":13}},{"id":"d022f944-1929-4cde-8c23-3d007e675e34","block_type":"box","text":"Each Fund and the entities with which it interacts directly or indirectly are susceptible to","page_number":527,"box":{"x":301,"y":346,"width":612,"height":13}},{"id":"4797732a-5c23-4e89-8bf5-793ff20c0337","block_type":"box","text":"operational and technology risks, including those related","page_number":527,"box":{"x":46,"y":362,"width":392,"height":12}},{"id":"a162e02f-90fe-42b6-82dd-83f8f99258d3","block_type":"box","text":"to human errors, processing errors, communication errors, systems","page_number":527,"box":{"x":443,"y":362,"width":463,"height":12}},{"id":"fc9a1bea-2237-49d8-b53a-0b97e87c9935","block_type":"box","text":"failures, cybersecurity incidents, and the use of artificial intellig","page_number":527,"box":{"x":45,"y":377,"width":436,"height":13}},{"id":"62fa820c-8a2b-4a2e-9d3a-bc2b194fea1d","block_type":"box","text":"ence and machine learning (“AI”), which may result in losses for a","page_number":527,"box":{"x":482,"y":377,"width":460,"height":13}},{"id":"5c307eab-a0f3-4761-b4b1-29b92dc3bf90","block_type":"box","text":"Fund and its shareholders or impair a Fund’s operations. These entities include, but are not limited to, a Fund’s adviser,","page_number":527,"box":{"x":45,"y":393,"width":829,"height":12}},{"id":"7131f41c-1131-4e8c-a013-632e235fa6bc","block_type":"box","text":"administrator, distributor, other service providers (e.g., index a","page_number":527,"box":{"x":46,"y":408,"width":436,"height":13}},{"id":"fb7fd75e-8891-4c46-bc69-0cbff4ca0d21","block_type":"box","text":"nd benchmark providers, accountants, custodians, and transfer","page_number":527,"box":{"x":482,"y":408,"width":437,"height":13}},{"id":"47239c61-f4a5-4085-b6d9-502b4949de8b","block_type":"box","text":"agents), financial intermediaries, counterparties, market makers, Aut","page_number":527,"box":{"x":46,"y":424,"width":475,"height":12}},{"id":"c9dc6988-1cd5-475c-89de-702503e95f4c","block_type":"box","text":"horized Participants, listing exchanges, other financial market","page_number":527,"box":{"x":522,"y":424,"width":427,"height":12}},{"id":"752ab3e7-b037-492b-b010-c475edb32b83","block_type":"box","text":"operators, and governmental authorities, as applicable. Operational and technology risks for the issuers in which a Fund invests","page_number":527,"box":{"x":46,"y":439,"width":885,"height":13}},{"id":"e927fbaf-4824-422d-bba4-f4f252bb1af4","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause a Fund’s investments in such issuers to lose","page_number":527,"box":{"x":45,"y":455,"width":866,"height":12}},{"id":"d20f0343-00dc-4fff-942a-f89bb03659a9","block_type":"box","text":"value. A Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":527,"box":{"x":45,"y":470,"width":664,"height":13}},{"id":"53a5ade6-d93c-438c-887c-6dd8f6013683","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unint","page_number":527,"box":{"x":46,"y":492,"width":457,"height":13}},{"id":"f37538b8-db22-46e3-99eb-ae5a86ae5ef8","block_type":"box","text":"entional events against an issuer in which a Fund invests, a Fund","page_number":527,"box":{"x":504,"y":492,"width":447,"height":13}},{"id":"a1842e94-6a4c-438d-b605-dbdd84d89e91","block_type":"box","text":"or any of its service providers. They include, but are not limited to, gaining unauthorized access to systems, misappropriating","page_number":527,"box":{"x":46,"y":507,"width":866,"height":13}},{"id":"7247954d-b560-42d4-bac4-32d8d0317ffb","block_type":"box","text":"assets or sensitive information, corrupting or destroying data, and causing operational disruption. Geopolitical tension may","page_number":527,"box":{"x":46,"y":523,"width":855,"height":13}},{"id":"185abab5-35fa-48d7-9ebd-4acc9188c550","block_type":"box","text":"increase the scale and sophistication of deliberate attacks, partic","page_number":527,"box":{"x":45,"y":538,"width":443,"height":13}},{"id":"7fbe7b4e-ca46-4357-a028-33de03797757","block_type":"box","text":"ularly those from nation states or from entities with nation state","page_number":527,"box":{"x":489,"y":538,"width":444,"height":13}},{"id":"a5e2d5c9-e784-4218-a08c-df6045d3f286","block_type":"box","text":"backing. Cybersecurity incidents may result in any of the followin","page_number":527,"box":{"x":46,"y":554,"width":455,"height":13}},{"id":"8a252a70-f478-4339-ad12-d3f61fa6a1e5","block_type":"box","text":"g: financial losses; interference with a Fund’s ability to calculate","page_number":527,"box":{"x":502,"y":554,"width":441,"height":13}},{"id":"7be10fd0-69e1-4860-b363-c058f3966cab","block_type":"box","text":"its NAV; disclosure of confidential information; impediment","page_number":527,"box":{"x":45,"y":569,"width":419,"height":13}},{"id":"09c5ffcc-dcb6-4e59-8276-495aec7ee5ae","block_type":"box","text":"s to trading; submission of erroneous trades by a Fund or erroneous","page_number":527,"box":{"x":465,"y":569,"width":470,"height":13}},{"id":"16b8627e-72d2-445c-8bfb-bad0142c6885","block_type":"box","text":"subscription or redemption orders; the inability of a Fund or its serv","page_number":527,"box":{"x":46,"y":585,"width":471,"height":13}},{"id":"93214f2d-8ed8-4ea3-a2fb-96b5ab138372","block_type":"box","text":"ice providers to transact business; violations of applicable","page_number":527,"box":{"x":518,"y":585,"width":398,"height":13}},{"id":"e65b5754-0459-4d1f-9ba2-59def2da711e","block_type":"box","text":"privacy and other laws; regulatory fines; penalties; reputationa","page_number":527,"box":{"x":45,"y":600,"width":434,"height":13}},{"id":"04c2e973-00f0-4158-8133-f88a78d48182","block_type":"box","text":"l damage; reimbursement or other compensation costs; and other","page_number":527,"box":{"x":479,"y":600,"width":452,"height":13}},{"id":"f1944545-d9d0-4271-87c4-567005f6068d","block_type":"box","text":"legal and compliance expenses. 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Power outages, natural disast","page_number":527,"box":{"x":45,"y":647,"width":384,"height":13}},{"id":"fc061f88-9b6b-4a26-b2a7-fcb232b6f29f","block_type":"box","text":"ers, equipment malfunctions and processing errors that threaten","page_number":527,"box":{"x":430,"y":647,"width":443,"height":13}},{"id":"c4175e5a-7d37-4bcc-aa7d-ceb52c2b7870","block_type":"box","text":"information and technology systems relied upon by a Fund or its service providers, as well as market events that occur at a pace","page_number":527,"box":{"x":45,"y":662,"width":886,"height":13}},{"id":"8790b22f-2a4d-44c3-a796-6dd474512cfa","block_type":"box","text":"that overloads these systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose","page_number":527,"box":{"x":45,"y":678,"width":896,"height":13}},{"id":"d75cd85f-53dd-4c86-9217-312472aaa082","block_type":"box","text":"risks to a Fund and its portfolio investments. 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AI technologies may also allow the unintended introduction of","page_number":528,"box":{"x":46,"y":156,"width":836,"height":13}},{"id":"56a01ac5-2fb8-4a8f-94fa-83687fe9308a","block_type":"box","text":"vulnerabilities into infrastructures and applications. To the ex","page_number":528,"box":{"x":45,"y":172,"width":428,"height":13}},{"id":"f815684d-decc-4af2-96ef-e7519b437068","block_type":"box","text":"tent that a Fund or its portfolio investments are exposed to the risks","page_number":528,"box":{"x":474,"y":172,"width":470,"height":13}},{"id":"92a8d359-2ac0-4bb0-bd2c-f79908c3b8a8","block_type":"box","text":"of AI technology use, any such inaccuracies or errors could have adverse impacts on a Fund or its investments.","page_number":528,"box":{"x":46,"y":187,"width":764,"height":13}},{"id":"1494abd2-4b74-441e-b8cc-d0b5cad12056","block_type":"box","text":"Regulations related to AI technology could also impose certain ob","page_number":528,"box":{"x":46,"y":209,"width":456,"height":13}},{"id":"1582bbe1-4c95-4a37-83df-4d1a637199b7","block_type":"box","text":"ligations and costs related to monitoring and compliance. 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The full extent of current or future risks related","page_number":528,"box":{"x":489,"y":355,"width":424,"height":13}},{"id":"a5fa16af-8f5f-4069-a46f-6f6d6c0b54c8","block_type":"box","text":"thereto is not possible to predict, and a Fund may not be able to an","page_number":528,"box":{"x":45,"y":371,"width":466,"height":12}},{"id":"2e79cb00-b6b9-40d8-b8bf-ee396c4dae57","block_type":"box","text":"ticipate, prevent, mitigate, or remediate all of the potential","page_number":528,"box":{"x":511,"y":371,"width":405,"height":12}},{"id":"bbf2b8fc-f9e8-41f2-8832-1d325d135e05","block_type":"box","text":"risks, challenges, or impacts of such changes.","page_number":528,"box":{"x":45,"y":386,"width":311,"height":13}},{"id":"636c477d-f148-47bc-be63-be5c7e4a8cb7","block_type":"box","text":"While each Fund’s service providers are required to have appropr","page_number":528,"box":{"x":45,"y":408,"width":453,"height":13}},{"id":"ce1d4aaa-a1b5-427f-9eb0-765695237c89","block_type":"box","text":"iate operational, information security and cybersecurity risk","page_number":528,"box":{"x":499,"y":408,"width":414,"height":13}},{"id":"2a0d273e-fdb3-47bc-9838-84c6f01fa0df","block_type":"box","text":"management policies and procedures, their methods of risk management may differ from those of a Fund in the setting of","page_number":528,"box":{"x":45,"y":424,"width":843,"height":12}},{"id":"e46c4ab4-1d4b-4b21-83e2-2c123c2e54d1","block_type":"box","text":"priorities, the personnel and resources available or the effectiveness of relevant controls. 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Regulators continue to develop new rules and sta","page_number":528,"box":{"x":45,"y":585,"width":435,"height":13}},{"id":"9fc6f693-299e-4815-9313-ceb34e78f358","block_type":"box","text":"ndards related to cybersecurity and data protection. Compliance","page_number":528,"box":{"x":481,"y":585,"width":446,"height":13}},{"id":"ad9525a1-dd90-4679-8771-3798a9fe14b7","block_type":"box","text":"with evolving regulations can be demanding and costly, requiri","page_number":528,"box":{"x":45,"y":600,"width":436,"height":13}},{"id":"0c51a4cf-7944-441e-bd7d-55d5d9ae1fbe","block_type":"box","text":"ng substantial resources to monitor and implement required","page_number":528,"box":{"x":482,"y":600,"width":415,"height":13}},{"id":"8448e23e-b7d6-467e-9f79-663a0955502b","block_type":"box","text":"changes.","page_number":528,"box":{"x":45,"y":616,"width":58,"height":13}},{"id":"8e823079-c139-440d-9620-d7b4c09502b4","block_type":"box","text":"Purchase of Securities with Fixed Price “Puts.”","page_number":528,"box":{"x":45,"y":638,"width":331,"height":13}},{"id":"38073181-4a11-4a7e-8108-baaedd98162d","block_type":"box","text":"Certain Funds have authority to purchase fixed rate Municipal Securities and, for","page_number":528,"box":{"x":380,"y":638,"width":564,"height":13}},{"id":"68f608e9-5c14-462b-8286-924166c6018c","block_type":"box","text":"a price, simultaneously acquire the right to sell such securities back to the seller at an agreed-upon rate at any time during a stated","page_number":528,"box":{"x":46,"y":653,"width":899,"height":13}},{"id":"2f2f5d70-012e-461e-8305-b02b6e68173f","block_type":"box","text":"period or on a certain date. 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Repurchase agreements may be entered into only with a member","page_number":528,"box":{"x":483,"y":737,"width":458,"height":13}},{"id":"64f42da9-3741-486f-a455-7f1799df9dec","block_type":"box","text":"bank of the Federal Reserve System or primary dealer in U.S. Government securities or an affiliate thereof that meets the","page_number":528,"box":{"x":46,"y":753,"width":834,"height":13}},{"id":"5713707d-5a27-47a0-9c03-e23abf20db19","block_type":"box","text":"creditworthiness standards adopted by the Manager. 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One","page_number":528,"box":{"x":483,"y":846,"width":447,"height":13}},{"id":"6b51adda-4ffb-4d60-a231-0d9bc659619f","block_type":"box","text":"common type of repurchase agreement a Fund may enter into is a “tr","page_number":528,"box":{"x":45,"y":861,"width":480,"height":13}},{"id":"d589d6ad-327f-4558-8327-94e6f0a1700d","block_type":"box","text":"i-party” repurchase agreement. In “tri-party” repurchase","page_number":528,"box":{"x":526,"y":861,"width":394,"height":13}},{"id":"c7355fe7-6fa4-401d-8b8f-bee575131406","block_type":"box","text":"agreements, an unaffiliated third party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":528,"box":{"x":46,"y":877,"width":878,"height":13}},{"id":"09aa752b-5c26-49ec-820f-d7d07c332e4d","block_type":"box","text":"II-11","page_number":528,"box":{"x":482,"y":917,"width":33,"height":9}},{"id":"85318002-4544-46d1-890f-f9dee16020f1","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":528,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"209e076a-52e3-4899-b243-64e3a2389b66","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians. In any repurchase transaction to which a Fund is a party,","page_number":529,"box":{"x":45,"y":79,"width":901,"height":12}},{"id":"aa73e348-5b62-4e2d-9516-d617db2e84d7","block_type":"box","text":"collateral for a repurchase agreement may include cash items and obligations issued by the U.S. Government or its agencies or","page_number":529,"box":{"x":45,"y":94,"width":873,"height":13}},{"id":"940386c3-fe88-46ea-b3ec-a76b00940137","block_type":"box","text":"instrumentalities. Collateral, however, is not limited to the foregoi","page_number":529,"box":{"x":45,"y":109,"width":458,"height":13}},{"id":"e42a470b-792f-45b9-b91f-fce3aeeadb7c","block_type":"box","text":"ng and may include, for example, obligations rated below the","page_number":529,"box":{"x":504,"y":109,"width":426,"height":13}},{"id":"9331d0ed-0049-4cb6-8132-127359e9a320","block_type":"box","text":"highest category by NRSROs, including collateral that may be below investment grade. Collateral for a repurchase agreement may","page_number":529,"box":{"x":45,"y":125,"width":906,"height":13}},{"id":"14f465a7-9775-498b-95a7-cb0c8543cd97","block_type":"box","text":"also include securities that a Fund could not hold directly without the repurchase obligation. Irrespective of the type of collateral","page_number":529,"box":{"x":46,"y":140,"width":889,"height":13}},{"id":"79d1e02b-a962-40b1-8c14-b1c9d185e624","block_type":"box","text":"underlying the repurchase agreement, the Fund must determin","page_number":529,"box":{"x":46,"y":156,"width":430,"height":12}},{"id":"44119761-ae2d-4c42-a9e1-a8aaf08c2aa8","block_type":"box","text":"e that a repurchase obligation with a particular counterparty","page_number":529,"box":{"x":477,"y":156,"width":420,"height":12}},{"id":"b466e6e7-4817-4633-83e6-20e8037e30f8","block_type":"box","text":"involves minimal credit risk to the Fund and otherwise satisfie","page_number":529,"box":{"x":45,"y":171,"width":430,"height":10}},{"id":"e8e8bd4b-e39e-4db4-8843-b683d917c567","block_type":"box","text":"s any additional credit quality standards applicable to the Fund.","page_number":529,"box":{"x":476,"y":171,"width":441,"height":13}},{"id":"a8965c0d-0d58-4d2b-9185-e72748af8ece","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the underlying securities","page_number":529,"box":{"x":45,"y":192,"width":884,"height":13}},{"id":"4033499a-1e57-4796-b1d2-a58a845b41ab","block_type":"box","text":"are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the repurchase price. Therefore, a Fund","page_number":529,"box":{"x":46,"y":208,"width":893,"height":12}},{"id":"12743be5-1154-4a3f-9894-04d876d1beac","block_type":"box","text":"may suffer time delays and incur costs or possible losses in c","page_number":529,"box":{"x":45,"y":223,"width":417,"height":13}},{"id":"32392b6e-8949-4375-9bf8-a0c0d3b28aad","block_type":"box","text":"onnection with the disposition of the collateral. In the event of a","page_number":529,"box":{"x":462,"y":223,"width":444,"height":13}},{"id":"eb572e8a-f6ea-4d25-8b7f-2d40704e41bc","block_type":"box","text":"default under a repurchase agreement that is construed to be a collateralized loan, instead of the contractual fixed rate of return,","page_number":529,"box":{"x":46,"y":238,"width":888,"height":13}},{"id":"2b5d12e4-48f0-4852-8dd1-9597eb2c10d2","block_type":"box","text":"the rate of return to a Fund will depend upon intervening fluctuations of the market value of such security and the accrued interest","page_number":529,"box":{"x":45,"y":254,"width":906,"height":13}},{"id":"8f2d6da9-ad3b-4e88-b31d-50bff1c53c47","block_type":"box","text":"on the security. In such event, a Fund would have rights against the seller for breach of contract with respect to any losses arising","page_number":529,"box":{"x":46,"y":269,"width":893,"height":13}},{"id":"597147c3-c3ae-48ef-92a7-ce06c701bba0","block_type":"box","text":"from market fluctuations following the failure of the seller to p","page_number":529,"box":{"x":45,"y":284,"width":436,"height":13}},{"id":"3d5cdfa8-e799-4180-9fa4-19435ea12e89","block_type":"box","text":"erform. In general, for Federal income tax purposes, repurchase","page_number":529,"box":{"x":482,"y":284,"width":441,"height":13}},{"id":"28717238-b310-4654-9919-a14f48366d51","block_type":"box","text":"agreements are treated as collateralized loans secured by the secu","page_number":529,"box":{"x":46,"y":300,"width":449,"height":13}},{"id":"24829615-de25-4d16-89ee-1850e69656b3","block_type":"box","text":"rities “sold.” Therefore, amounts earned under such agreements,","page_number":529,"box":{"x":495,"y":300,"width":448,"height":13}},{"id":"96850bc7-e0ba-4a21-9beb-f548b0aed7e3","block_type":"box","text":"even if the underlying securities are tax-exempt securities, will","page_number":529,"box":{"x":46,"y":315,"width":428,"height":13}},{"id":"60d72548-e056-433c-8a5a-58665e274881","block_type":"box","text":"not be considered tax-exempt interest. From time to time, a Fund","page_number":529,"box":{"x":479,"y":315,"width":453,"height":13}},{"id":"82b0df02-df14-43c4-83b1-06a1292edd29","block_type":"box","text":"also may invest in money market securities pursuant to purchase and","page_number":529,"box":{"x":46,"y":331,"width":477,"height":12}},{"id":"4e8a9fbc-a56e-406f-85df-2f304234f1ca","block_type":"box","text":"sale contracts. While purchase and sale contracts are similar","page_number":529,"box":{"x":528,"y":331,"width":416,"height":12}},{"id":"38ac8b30-4c93-4ee3-a353-24afcc8c82a3","block_type":"box","text":"to repurchase agreements, purchase and sale contracts are struct","page_number":529,"box":{"x":45,"y":346,"width":445,"height":13}},{"id":"885825fd-6258-4328-b1b9-04a0b38bf88d","block_type":"box","text":"ured so as to be in substance more like a purchase and sale of the","page_number":529,"box":{"x":490,"y":346,"width":452,"height":13}},{"id":"9495a814-f5b7-4298-bf6f-73190b1b6342","block_type":"box","text":"underlying security than is the case with repurchase agreements a","page_number":529,"box":{"x":46,"y":361,"width":451,"height":13}},{"id":"1a08e5b6-a48b-482f-90c1-e5aedb5daca0","block_type":"box","text":"nd, with purchase and sale contracts, the purchaser receives any","page_number":529,"box":{"x":498,"y":361,"width":442,"height":13}},{"id":"bff2d4f6-2a9c-4523-9f81-b29bd545447a","block_type":"box","text":"interest on the security paid during the period of the contract.","page_number":529,"box":{"x":45,"y":377,"width":426,"height":13}},{"id":"dbd83a9b-599d-4d5e-bd94-8fbb7aef4bdf","block_type":"box","text":"Repurchase agreements pose certain risks for a Fund that utilizes them. Such risks are not unique to the Fund but are inherent in","page_number":529,"box":{"x":46,"y":398,"width":889,"height":13}},{"id":"700082db-b2d3-4d57-a134-8bb0b4efc9c0","block_type":"box","text":"repurchase agreements. The Funds seek to minimize such risks but because of the inherent legal uncertainties involved in","page_number":529,"box":{"x":45,"y":413,"width":835,"height":13}},{"id":"3fa9bcd2-8c6f-4d2f-a5d8-238fad209e20","block_type":"box","text":"repurchase agreements, such risks cannot be eliminated. Lower","page_number":529,"box":{"x":45,"y":429,"width":437,"height":13}},{"id":"c0ff23b8-47e9-4c67-8ced-2ed72d953d25","block_type":"box","text":"quality collateral and collateral with longer maturities may be","page_number":529,"box":{"x":487,"y":429,"width":428,"height":13}},{"id":"a26e1984-8b57-4928-9495-ecc4c6b0ed3c","block_type":"box","text":"subject to greater price fluctuations than higher quality collateral and collateral with shorter maturities. If the repurchase","page_number":529,"box":{"x":46,"y":444,"width":835,"height":13}},{"id":"f24ca2f1-5edd-4d95-8d4d-c8585a244a2a","block_type":"box","text":"agreement counterparty were to default, lower quality collateral m","page_number":529,"box":{"x":46,"y":460,"width":461,"height":12}},{"id":"b7b3b7dc-88c0-413a-abfb-1d0e720b09b7","block_type":"box","text":"ay be more difficult to liquidate than higher quality collateral.","page_number":529,"box":{"x":508,"y":460,"width":427,"height":12}},{"id":"d328feba-d6de-4d18-80a9-4f9516f1c7fe","block_type":"box","text":"Should the counterparty default and the amount of collateral not be","page_number":529,"box":{"x":46,"y":475,"width":470,"height":13}},{"id":"6d51572f-94b4-46ae-b3c1-ba3aa29a2b93","block_type":"box","text":"sufficient to cover the counterparty’s repurchase obligation, a","page_number":529,"box":{"x":521,"y":475,"width":425,"height":13}},{"id":"a92433b1-5a71-49d4-ba07-381610d96bd0","block_type":"box","text":"Fund would retain the status of an unsecured creditor of the counterparty (","page_number":529,"box":{"x":45,"y":490,"width":520,"height":13}},{"id":"b2dd290a-aa71-4b2b-8aa0-20fe1a5bf58b","block_type":"box","text":"i.e.","page_number":529,"box":{"x":567,"y":491,"width":18,"height":9}},{"id":"e8049f17-7909-4443-b688-dd4f44d7f305","block_type":"box","text":", the position the Fund would normally be in if it","page_number":529,"box":{"x":587,"y":490,"width":339,"height":13}},{"id":"128ad4f3-d5a6-4aab-b43f-3b68b2c4cc47","block_type":"box","text":"were to hold, pursuant to its investment policies, other unsecu","page_number":529,"box":{"x":45,"y":506,"width":430,"height":12}},{"id":"da01bfb0-d674-4a7f-ba33-17763e62ced7","block_type":"box","text":"red debt securities of the defaulting counterparty) with respect to the","page_number":529,"box":{"x":476,"y":506,"width":475,"height":12}},{"id":"ebfa6ec2-e36e-4f41-a766-0111bc3076bf","block_type":"box","text":"amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal and income","page_number":529,"box":{"x":46,"y":521,"width":856,"height":13}},{"id":"26b1cbb8-4bf8-4f26-85d7-0000485de00a","block_type":"box","text":"involved in the transaction.","page_number":529,"box":{"x":45,"y":536,"width":188,"height":10}},{"id":"bb234ea5-3048-4cfe-863e-64a7959beff2","block_type":"box","text":"Regulations adopted by global prudential regulators require cert","page_number":529,"box":{"x":46,"y":558,"width":445,"height":13}},{"id":"de8c74c8-de6e-4127-9288-f523dcfadd8d","block_type":"box","text":"ain bank-regulated counterparties and certain of their affiliates to","page_number":529,"box":{"x":492,"y":558,"width":452,"height":13}},{"id":"ff6b00b4-2f3f-4014-b228-0f6599d5c791","block_type":"box","text":"include in certain financial contracts, including many repurchase","page_number":529,"box":{"x":45,"y":573,"width":447,"height":13}},{"id":"998aac13-b028-4201-87a2-4b8d8483eb50","block_type":"box","text":"agreements and purchase and sale contracts, terms that delay or","page_number":529,"box":{"x":498,"y":573,"width":442,"height":13}},{"id":"f44cad9c-2390-4302-9b7f-f24c2176a3fe","block_type":"box","text":"restrict the rights of counterparties, such as a Fund, to terminate suc","page_number":529,"box":{"x":45,"y":588,"width":472,"height":13}},{"id":"2508c83a-9fdb-48ca-bdb3-30db87aba073","block_type":"box","text":"h agreements, take foreclosure action, exercise other default","page_number":529,"box":{"x":517,"y":588,"width":415,"height":13}},{"id":"3e03ad69-b520-4128-b485-c3465ffaa9ad","block_type":"box","text":"rights or restrict transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of","page_number":529,"box":{"x":45,"y":604,"width":874,"height":13}},{"id":"90a4f914-e806-4dfe-9e6e-4e26a93cef93","block_type":"box","text":"resolution or insolvency proceedings. It is possible that these re","page_number":529,"box":{"x":45,"y":619,"width":436,"height":13}},{"id":"34170f1d-bc65-49ef-a410-434d5b666678","block_type":"box","text":"quirements, as well as potential additional government regulation","page_number":529,"box":{"x":482,"y":619,"width":454,"height":13}},{"id":"eff5099a-2172-4031-b7dc-a410483658cf","block_type":"box","text":"and other developments in the market, could adversely affect a F","page_number":529,"box":{"x":46,"y":635,"width":448,"height":12}},{"id":"956f1833-6294-4db0-99f4-6befda115808","block_type":"box","text":"und’s ability to terminate existing repurchase agreements and","page_number":529,"box":{"x":494,"y":635,"width":425,"height":12}},{"id":"d085c505-7fdf-49b8-9a8e-baa78396aefc","block_type":"box","text":"purchase and sale contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":529,"box":{"x":45,"y":650,"width":898,"height":13}},{"id":"d6e15d32-7b36-478a-9a5a-f1fca17c9023","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including","page_number":529,"box":{"x":45,"y":665,"width":440,"height":13}},{"id":"8deead67-299b-438e-bdf7-77a8ace65b0d","block_type":"box","text":"repurchase agreements, to be centrally cleared. Compliance with","page_number":529,"box":{"x":490,"y":665,"width":446,"height":13}},{"id":"b57c5ea6-2157-44b2-a57d-ed2ea87a9470","block_type":"box","text":"these rules is expected to be required by the middle of 2027. Although the impact of these rules on the Funds is difficult to predict,","page_number":529,"box":{"x":45,"y":681,"width":903,"height":13}},{"id":"d533ae5f-57ad-4e41-a875-21505dbd884f","block_type":"box","text":"they may reduce the availability or increase the costs of such transactions and may adversely affect a Fund’s performance.","page_number":529,"box":{"x":45,"y":696,"width":842,"height":13}},{"id":"17993c7b-3aa1-4fb8-81b7-e8f91c5c94e8","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":529,"box":{"x":45,"y":717,"width":228,"height":13}},{"id":"96b5ff25-56a6-497d-8df7-d7df013c77c9","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties with whom it may","page_number":529,"box":{"x":279,"y":717,"width":657,"height":13}},{"id":"20d2770a-7545-4b88-ac9e-d45b3e11dd91","block_type":"box","text":"enter into repurchase agreements. Under a reverse repurchase","page_number":529,"box":{"x":46,"y":733,"width":424,"height":13}},{"id":"e7e4a92a-a5a1-432f-bf21-dd21c7cf7035","block_type":"box","text":"agreement, a Fund sells securities to another party and agrees to","page_number":529,"box":{"x":476,"y":733,"width":442,"height":13}},{"id":"de15f80f-d001-40b0-89d9-71656481ebe7","block_type":"box","text":"repurchase them at a mutually agreed-upon date and price. Reverse","page_number":529,"box":{"x":45,"y":748,"width":468,"height":13}},{"id":"e7499381-dab5-49f7-b9c4-0c46452f8759","block_type":"box","text":"repurchase agreements involve the risk that (i) the market","page_number":529,"box":{"x":518,"y":748,"width":398,"height":13}},{"id":"acc537ab-2cb4-4bed-8b07-3279e4e73333","block_type":"box","text":"value of the securities retained in lieu of sale by a Fund may decline below the price of the securities the Fund has sold but is","page_number":529,"box":{"x":45,"y":764,"width":859,"height":12}},{"id":"698ecfec-8dd1-4222-93c5-a13fcd3d9ea7","block_type":"box","text":"obligated to repurchase and (ii) the price of the securities sold may decline below the price at which the Fund is required to","page_number":529,"box":{"x":46,"y":779,"width":849,"height":13}},{"id":"03fc99ff-ff57-466e-a307-dd8c417401fc","block_type":"box","text":"repurchase them. In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":529,"box":{"x":45,"y":794,"width":864,"height":13}},{"id":"9b5d87d4-5aaa-4845-9459-df8a6e89e56b","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an","page_number":529,"box":{"x":45,"y":810,"width":422,"height":12}},{"id":"55409efc-fa01-496f-873b-1d199670a5c8","block_type":"box","text":"extension of time to determine whether to enforce a Fund’s","page_number":529,"box":{"x":472,"y":810,"width":409,"height":10}},{"id":"5bad008b-df50-40cf-8c5e-7c63eb2d0d11","block_type":"box","text":"obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase agreement may effectively be","page_number":529,"box":{"x":46,"y":825,"width":893,"height":13}},{"id":"c54313a2-a360-4faf-b44f-7010c99c1eca","block_type":"box","text":"restricted pending such decision.","page_number":529,"box":{"x":45,"y":840,"width":224,"height":13}},{"id":"5c0a8d96-198d-4efb-a486-eae28f4dcdda","block_type":"box","text":"Additionally, regulations adopted by global prudential regulator","page_number":529,"box":{"x":45,"y":862,"width":446,"height":13}},{"id":"7ce86364-1434-4b58-beb3-4436299c6342","block_type":"box","text":"s require certain bank-regulated counterparties and certain of their","page_number":529,"box":{"x":492,"y":862,"width":460,"height":13}},{"id":"c57232ce-cf3c-4041-9275-3eae7c91e95a","block_type":"box","text":"affiliates to include in certain financial contracts, including many reverse repurchase agreements, terms that delay or restrict the","page_number":529,"box":{"x":46,"y":877,"width":881,"height":13}},{"id":"cb76937c-0e74-49b9-9ba1-988294bb1671","block_type":"box","text":"II-12","page_number":529,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"e6dc45d9-50e4-4f89-a4eb-3c0b80a1a8bb","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":529,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ba86a965-2917-4447-a0ad-e1ab3afc3ce6","block_type":"box","text":"rights of counterparties, such as a Fund, to terminate such agreemen","page_number":530,"box":{"x":45,"y":79,"width":473,"height":13}},{"id":"58761854-009b-4577-8a0b-403d4c08d0be","block_type":"box","text":"ts, take foreclosure action, exercise other default rights or","page_number":530,"box":{"x":519,"y":79,"width":398,"height":13}},{"id":"a4c4f31b-e6f2-4394-b675-dce3a34045a4","block_type":"box","text":"restrict transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or","page_number":530,"box":{"x":45,"y":94,"width":904,"height":13}},{"id":"26ba8ffb-fbfd-409c-96bd-87ed91e7a080","block_type":"box","text":"insolvency proceedings. It is possible that these requirements","page_number":530,"box":{"x":45,"y":110,"width":419,"height":13}},{"id":"f30304de-f53d-4e8b-b257-df2f027eb041","block_type":"box","text":", as well as potential additional government regulation and other","page_number":530,"box":{"x":465,"y":110,"width":449,"height":13}},{"id":"983d2cf1-e96b-4348-b3ad-766fe0596f32","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ab","page_number":530,"box":{"x":46,"y":125,"width":435,"height":13}},{"id":"12c00604-ba62-4e2c-9c26-40f304d866e7","block_type":"box","text":"ility to terminate existing reverse repurchase agreements or to","page_number":530,"box":{"x":482,"y":125,"width":426,"height":13}},{"id":"abf8ae9e-f051-429c-84f6-bb51bad2717e","block_type":"box","text":"realize amounts to be received under such agreements. The SEC has also finalized rules that will require certain transactions","page_number":530,"box":{"x":45,"y":141,"width":858,"height":13}},{"id":"b4fc0a42-0db2-4441-b49d-029ce65dfb0a","block_type":"box","text":"involving U.S. Treasuries, including reverse repurchase agreements","page_number":530,"box":{"x":45,"y":156,"width":461,"height":13}},{"id":"94afeeee-013c-4e4b-972a-6ffa668f0dc9","block_type":"box","text":", to be centrally cleared. Compliance with these rules is expected","page_number":530,"box":{"x":507,"y":156,"width":445,"height":13}},{"id":"947644ee-207e-476d-80a1-923e79c0d0c5","block_type":"box","text":"to be required by the middle of 2027. Although the impact of these rules on the Funds is difficult to predict, they may reduce the","page_number":530,"box":{"x":45,"y":172,"width":891,"height":13}},{"id":"2c91618f-b7d3-4c79-b4d3-cfbdddb9801d","block_type":"box","text":"availability or increase the costs of such transactions and may adversely affect a Fund’s performance.","page_number":530,"box":{"x":46,"y":187,"width":697,"height":13}},{"id":"64648406-b5e7-480a-8e6e-983589448830","block_type":"box","text":"Rule 2a-7 Requirements.","page_number":530,"box":{"x":45,"y":211,"width":174,"height":12}},{"id":"e1a20c6f-9e42-4e4d-83a0-ebc639dcc08e","block_type":"box","text":"Rule 2a-7 under the Investment Company Act sets forth portfolio maturity, liquidity, diversification and","page_number":530,"box":{"x":225,"y":211,"width":723,"height":12}},{"id":"0c2416c8-4766-4244-9e2e-56d7ad29d7bc","block_type":"box","text":"quality requirements applicable to all money market funds.","page_number":530,"box":{"x":46,"y":226,"width":408,"height":13}},{"id":"ed0d8eb7-5634-422f-90f6-fcd46701fb18","block_type":"box","text":"Maturity.","page_number":530,"box":{"x":45,"y":250,"width":65,"height":12}},{"id":"992c5621-054f-45f1-9360-a3884c74b8fe","block_type":"box","text":"Each Fund is managed so that the dollar-weighted average maturity of all of its investments will be 60 days or less, and","page_number":530,"box":{"x":116,"y":249,"width":826,"height":13}},{"id":"e7e236c9-ebea-485d-ae8f-5275331959bc","block_type":"box","text":"the dollar-weighted average life of all of its investments will be 120 days or less. In addition, the Funds will not acquire any","page_number":530,"box":{"x":45,"y":265,"width":854,"height":13}},{"id":"70776802-ea33-41a4-ba82-2c07c9e2b3e1","block_type":"box","text":"instrument with a remaining maturity of greater than 397 days. The “dollar-weighted average maturity” of a Fund is the average","page_number":530,"box":{"x":45,"y":280,"width":895,"height":13}},{"id":"ed35177d-0873-4ba1-8d23-1248a93448ff","block_type":"box","text":"amount of time until the issuers of the debt securities in the F","page_number":530,"box":{"x":46,"y":296,"width":422,"height":10}},{"id":"409d5b19-2e30-41bf-8c28-16f7cf621f04","block_type":"box","text":"und’s portfolio must pay off the principal amount of the debt.","page_number":530,"box":{"x":469,"y":296,"width":428,"height":13}},{"id":"3a61e5c0-f051-4bd4-8a8b-2713d9e75723","block_type":"box","text":"“Dollar-weighted” means the larger the dollar value of a debt security based on its market value in a Fund, the more weight it gets","page_number":530,"box":{"x":47,"y":311,"width":903,"height":13}},{"id":"28c76efa-7da7-46f3-83cb-086732f34a4e","block_type":"box","text":"in calculating this average. To calculate the dollar-weighted","page_number":530,"box":{"x":45,"y":327,"width":412,"height":13}},{"id":"8b075826-280f-4eee-b25a-75108f2a53f2","block_type":"box","text":"average maturity, the Fund may treat a variable or floating rate","page_number":530,"box":{"x":462,"y":327,"width":439,"height":13}},{"id":"21672426-9df7-4957-86ec-9a7833742f0a","block_type":"box","text":"security under certain circumstances as having a maturity equal t","page_number":530,"box":{"x":46,"y":342,"width":448,"height":13}},{"id":"edb7ca60-8b76-4955-83c2-a1ef09b3384a","block_type":"box","text":"o the time remaining to the security’s next interest rate reset date","page_number":530,"box":{"x":495,"y":342,"width":448,"height":13}},{"id":"3786188e-b55c-4cd7-81b0-5366ae29e4b6","block_type":"box","text":"or the period remaining until the principal amount can be recovered","page_number":530,"box":{"x":46,"y":358,"width":471,"height":13}},{"id":"41da7432-9462-400b-9ee0-703a7d57bf46","block_type":"box","text":"through demand rather than the security’s actual maturity.","page_number":530,"box":{"x":522,"y":358,"width":406,"height":13}},{"id":"de01ba4e-ec89-42e4-ad47-f846dcdb5244","block_type":"box","text":"“Dollar-weighted average life” of a Fund’s portfolio is calcul","page_number":530,"box":{"x":47,"y":373,"width":419,"height":13}},{"id":"3d206245-1c64-4cc3-8627-d3842d03b688","block_type":"box","text":"ated without reference to the exceptions used in calculating the","page_number":530,"box":{"x":467,"y":373,"width":436,"height":13}},{"id":"2de12203-ebca-4c6f-8066-42afa2669c83","block_type":"box","text":"dollar-weighted average maturity for variable or floating rate securities regarding the use of interest rate reset dates.","page_number":530,"box":{"x":46,"y":389,"width":799,"height":13}},{"id":"fdffbd81-a4ad-4e6d-93dd-1611235838d1","block_type":"box","text":"Liquidity.","page_number":530,"box":{"x":45,"y":412,"width":67,"height":13}},{"id":"ac04e4ab-5636-4a89-a6b8-4b2f9b91b418","block_type":"box","text":"Rule 2a-7 contains a “general liquidity requirement” that","page_number":530,"box":{"x":119,"y":412,"width":398,"height":13}},{"id":"5cfa3dfc-5bcc-4287-8d6f-f39104fc050a","block_type":"box","text":"requires that each Fund hold securities that are sufficiently","page_number":530,"box":{"x":521,"y":412,"width":405,"height":13}},{"id":"5780c24f-1b6d-4761-87ce-71a34998bf6c","block_type":"box","text":"liquid to meet reasonably foreseeable shareholder redemptions","page_number":530,"box":{"x":45,"y":428,"width":433,"height":12}},{"id":"a3389c55-7ccb-4a22-93c2-891ce73b4010","block_type":"box","text":"in light of its obligations under section 22(e) of the Investment","page_number":530,"box":{"x":484,"y":428,"width":431,"height":12}},{"id":"e0afb0ca-a3e0-4245-9398-1b46e76df074","block_type":"box","text":"Company Act, and any commitments the Fund has made to sharehol","page_number":530,"box":{"x":46,"y":443,"width":478,"height":13}},{"id":"37f904c4-eaa1-49da-8a24-1627eb6d6a30","block_type":"box","text":"ders. To comply with this general liquidity requirement, each","page_number":530,"box":{"x":524,"y":443,"width":423,"height":13}},{"id":"21635fe5-70e9-4c80-8f2e-9f3f0f3ce315","block_type":"box","text":"Fund’s adviser or sub-adviser must consider factors that could affe","page_number":530,"box":{"x":45,"y":459,"width":454,"height":10}},{"id":"dd9ff88d-a072-47cb-90bd-7b474ef9554e","block_type":"box","text":"fect the Fund’s liquidity needs, including characteristics of the","page_number":530,"box":{"x":499,"y":459,"width":421,"height":12}},{"id":"11fa76d2-6544-47cf-972e-14ad9c70236c","block_type":"box","text":"Fund’s investors and their likely redemptions. Depending","page_number":530,"box":{"x":45,"y":474,"width":396,"height":13}},{"id":"0479ad29-c3da-43bd-9c7b-1abc68aea671","block_type":"box","text":"upon the volatility of its cash flows (particularly shareholder","page_number":530,"box":{"x":446,"y":474,"width":419,"height":13}},{"id":"65a6dabe-a9c7-4555-8dae-d78334a576d3","block_type":"box","text":"redemptions), this provision may require a Fund to maintain g","page_number":530,"box":{"x":45,"y":490,"width":433,"height":12}},{"id":"d55a6a14-3efb-49d2-b6a4-105ab65eeb30","block_type":"box","text":"reater liquidity than would be required by the daily and weekly","page_number":530,"box":{"x":478,"y":490,"width":439,"height":12}},{"id":"543b9eb3-4b36-4cba-b612-506bac2ce7df","block_type":"box","text":"minimum liquidity requirements discussed below. The Funds will","page_number":530,"box":{"x":45,"y":505,"width":453,"height":13}},{"id":"45360605-3321-4c5d-8904-1839e6f4230b","block_type":"box","text":"not acquire any security other than daily liquid assets unless,","page_number":530,"box":{"x":503,"y":505,"width":419,"height":13}},{"id":"01d6d200-3e29-4bb7-9e51-c09742626f12","block_type":"box","text":"immediately following such purchase, at least 25% of its total assets would be invested in daily liquid assets. The Funds will not","page_number":530,"box":{"x":45,"y":521,"width":888,"height":12}},{"id":"141c9674-d474-437b-8a2b-d04b69cff4aa","block_type":"box","text":"acquire any security other than weekly liquid assets unless, immediately following such purchase, at least 50% of its total assets","page_number":530,"box":{"x":46,"y":536,"width":884,"height":13}},{"id":"cd9c3867-752d-4e08-b915-27b6128ea721","block_type":"box","text":"would be invested in weekly liquid assets. “Daily Liquid Assets” in","page_number":530,"box":{"x":45,"y":552,"width":464,"height":12}},{"id":"66bfcc20-8d9e-4831-ba3d-a33414125d31","block_type":"box","text":"clude (i) cash; (ii) direct obligations of the U.S. Government;","page_number":530,"box":{"x":509,"y":552,"width":417,"height":12}},{"id":"9c0f9c67-66e4-4970-af72-dcdd85c353df","block_type":"box","text":"(iii) securities that will mature, as determined without reference to the maturity shortening provisions of Rule 2a-7 regarding","page_number":530,"box":{"x":46,"y":567,"width":862,"height":13}},{"id":"6edb7c9b-40c6-4db5-b067-83e92671d9ae","block_type":"box","text":"interest rate readjustments, or are subject to a demand featu","page_number":530,"box":{"x":45,"y":583,"width":416,"height":12}},{"id":"332ded7a-1571-4b5d-b284-009bf735b3f6","block_type":"box","text":"re that is exercisable and payable within one business day; and","page_number":530,"box":{"x":461,"y":583,"width":434,"height":12}},{"id":"c90dc196-d9b3-475d-baab-fd0b3993447a","block_type":"box","text":"(iv) amounts receivable and due unconditionally within one business day on pending sales of portfolio securities. “Weekly Liquid","page_number":530,"box":{"x":46,"y":598,"width":894,"height":13}},{"id":"2661faa5-30c7-4b10-ba58-bad3d21efd60","block_type":"box","text":"Assets” include (i) cash; (ii) direct obligations of the U.S. G","page_number":530,"box":{"x":45,"y":614,"width":408,"height":12}},{"id":"5df714d3-d51a-4385-b187-d8a591d994cc","block_type":"box","text":"overnment; (iii) U.S. Government securities issued by a person","page_number":530,"box":{"x":454,"y":614,"width":430,"height":12}},{"id":"11ca6de6-917f-4c7a-81db-c6f2d20bbc12","block_type":"box","text":"controlled or supervised by and acting as an instrumentality of the U.S. Government pursuant to authority granted by the U.S.","page_number":530,"box":{"x":45,"y":629,"width":875,"height":13}},{"id":"5c9e6259-dd7a-4257-bfb2-e9c13b6fe17f","block_type":"box","text":"Congress, that are issued at a discount to the principal amount to be repaid at maturity without provision for the payment of","page_number":530,"box":{"x":46,"y":645,"width":867,"height":12}},{"id":"11952d18-bd43-41d9-8cda-ea8b5f400ce6","block_type":"box","text":"interest and have a remaining maturity of 60 days or less; (iv)","page_number":530,"box":{"x":45,"y":660,"width":425,"height":13}},{"id":"4d416fd7-e1e7-4ced-b5f3-017b564262f6","block_type":"box","text":"securities that will mature, as determined without reference to the","page_number":530,"box":{"x":476,"y":660,"width":454,"height":12}},{"id":"20f4eb2f-72b4-4319-a3d2-6315f889f8ad","block_type":"box","text":"maturity shortening provisions of Rule 2a-7 regarding interest rate readjustments, or are subject to a demand feature that is","page_number":530,"box":{"x":45,"y":676,"width":856,"height":12}},{"id":"1b16bbd5-6210-4257-b8d7-938e9f8448bf","block_type":"box","text":"exercisable and payable within five business days; and (v) am","page_number":530,"box":{"x":46,"y":691,"width":423,"height":13}},{"id":"03be9cb4-c0f9-491d-aee9-53cfde781cfe","block_type":"box","text":"ounts receivable and due unconditionally within five business days on","page_number":530,"box":{"x":470,"y":691,"width":483,"height":13}},{"id":"d75ee3f0-2065-4fec-9ec6-c4db949c7ba0","block_type":"box","text":"pending sales of portfolio securities. No Fund will invest more than 5% of the value of its total assets in securities that are illiquid","page_number":530,"box":{"x":45,"y":707,"width":898,"height":12}},{"id":"1061bcba-d82b-44bf-a769-c63018733782","block_type":"box","text":"(","page_number":530,"box":{"x":46,"y":723,"width":3,"height":12}},{"id":"fae3c306-842b-4179-93bd-7af96285c7cf","block_type":"box","text":"i.e.","page_number":530,"box":{"x":51,"y":723,"width":18,"height":9}},{"id":"8edb7a5e-0aaa-4d50-b24f-bca4d2f261b0","block_type":"box","text":", securities that cannot be sold or disposed of in the ordinary course of business within seven days at approximately the value","page_number":530,"box":{"x":71,"y":722,"width":866,"height":13}},{"id":"e0f6fe34-3330-49b6-bc82-17b4f7ed2c1a","block_type":"box","text":"ascribed to them by the Fund).","page_number":530,"box":{"x":46,"y":738,"width":211,"height":12}},{"id":"61820f3d-642b-4502-a059-a75b33461298","block_type":"box","text":"Portfolio Diversification and Quality.","page_number":530,"box":{"x":45,"y":761,"width":261,"height":13}},{"id":"0cb29d79-b094-453d-bde4-4b79cc1391bd","block_type":"box","text":"Immediately after the acquisition of any security, taxable money market funds must not","page_number":530,"box":{"x":313,"y":761,"width":608,"height":13}},{"id":"70962b52-4fae-4160-8f67-314aa4fecf66","block_type":"box","text":"have invested more than: Five percent of its total assets in securitie","page_number":530,"box":{"x":45,"y":776,"width":460,"height":13}},{"id":"94095b56-5b3c-4aa9-b720-db5550642f8d","block_type":"box","text":"s issued by the issuer of the security, provided, however, such a","page_number":530,"box":{"x":506,"y":776,"width":436,"height":13}},{"id":"e36e07f0-bdc5-4af8-a4da-c9a8d092eff2","block_type":"box","text":"fund may invest up to twenty-five percent of its total assets in the securities of a single issuer for a period of up to three business","page_number":530,"box":{"x":45,"y":792,"width":885,"height":13}},{"id":"f9daba8b-4eeb-4fc4-a3aa-73e1e51a2acd","block_type":"box","text":"days after the acquisition thereof; provided, further, that th","page_number":530,"box":{"x":46,"y":807,"width":409,"height":13}},{"id":"debba424-69b3-48c1-9633-574f8caa21c7","block_type":"box","text":"e fund may not invest in the securities of more than one issuer in","page_number":530,"box":{"x":456,"y":807,"width":446,"height":13}},{"id":"514c2594-f087-4467-98be-1acc0c1c7fa8","block_type":"box","text":"accordance with the foregoing proviso at any time; and ten percen","page_number":530,"box":{"x":46,"y":823,"width":458,"height":13}},{"id":"de85f46f-11eb-44b0-b3be-7813c8538cc5","block_type":"box","text":"t of its total assets in securities issued by or subject to demand","page_number":530,"box":{"x":505,"y":823,"width":428,"height":13}},{"id":"f061cbfb-4485-406b-990d-ade6a9b9623c","block_type":"box","text":"features or guarantees from the institution that issued the demand feature or guarantee.","page_number":530,"box":{"x":45,"y":838,"width":605,"height":13}},{"id":"d2dffd59-a4ac-4490-a6dd-e7223971043f","block_type":"box","text":"Government Money Market Funds.","page_number":530,"box":{"x":46,"y":862,"width":246,"height":13}},{"id":"67caf5ea-e6a2-4252-82d5-209eb4af7e52","block_type":"box","text":"A government money market fund invests at least 99.5% of its total assets in obligations of","page_number":530,"box":{"x":298,"y":862,"width":634,"height":13}},{"id":"9261582c-5167-4459-afb2-38828a10560a","block_type":"box","text":"the U.S. Government, including obligations of the U.S. Treasury and federal agencies and instrumentalities, as well as repurchase","page_number":530,"box":{"x":45,"y":877,"width":892,"height":13}},{"id":"c8fb4c67-ee4b-4f0d-9181-39df8b678901","block_type":"box","text":"II-13","page_number":530,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"ea101e44-e6f2-4e21-971a-e8e2faee6191","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":530,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a7ce8b3a-aa0f-48f6-b061-5cb2f1695996","block_type":"box","text":"agreements collateralized by government securities. Under Rule 2a-7, a government money market fund may, but is not required","page_number":531,"box":{"x":46,"y":79,"width":891,"height":13}},{"id":"7fece97d-4fc2-451f-b874-2c1b43135bad","block_type":"box","text":"to, impose discretionary liquidity fees. The Board of Trustees has determined that each Fund that is a government money market","page_number":531,"box":{"x":45,"y":94,"width":893,"height":13}},{"id":"52a0da41-8c27-4cf6-9cb3-8db8037358cf","block_type":"box","text":"fund will not be subject to discretionary liquidity fees under Rule 2a-7.","page_number":531,"box":{"x":45,"y":110,"width":490,"height":13}},{"id":"a44e92fa-01cf-4243-9965-11dfc8be4b04","block_type":"box","text":"Retail Money Market Funds.","page_number":531,"box":{"x":45,"y":133,"width":200,"height":13}},{"id":"d998e02b-17fa-40d6-86ce-afffe47db4dc","block_type":"box","text":"A retail money market fund is a money market fund that has policies and procedures reasonably","page_number":531,"box":{"x":251,"y":133,"width":668,"height":13}},{"id":"1aa65603-a815-4b91-a079-155a28453b6e","block_type":"box","text":"designed to limit all beneficial owners of the fund to natural persons. Under Rule 2a-7, a retail money market fund is subject to the","page_number":531,"box":{"x":46,"y":149,"width":907,"height":12}},{"id":"89e95f43-8351-4a77-b418-5a822564f7bc","block_type":"box","text":"discretionary liquidity fees provisions; however, a retail mone","page_number":531,"box":{"x":46,"y":164,"width":425,"height":13}},{"id":"26c637e4-b2bd-483f-94f7-64ecb92804a5","block_type":"box","text":"y market fund is permitted to use the amortized cost method of","page_number":531,"box":{"x":472,"y":164,"width":439,"height":13}},{"id":"54cb8d35-433b-4579-a963-6d528fb5ae7e","block_type":"box","text":"accounting or the penny rounding method, allowing a retail money market fund to maintain a stable NAV.","page_number":531,"box":{"x":46,"y":180,"width":743,"height":12}},{"id":"30a190a4-9837-4bfa-9a3b-216879050b6e","block_type":"box","text":"Securities Lending.","page_number":531,"box":{"x":46,"y":203,"width":132,"height":13}},{"id":"cff1bfdc-5fbb-4d8b-9934-656d2d6aeb56","block_type":"box","text":"Each Fund may lend portfolio securities to certain borro","page_number":531,"box":{"x":184,"y":203,"width":390,"height":13}},{"id":"ea6342eb-5bed-4e94-b0b6-3bbedd6ddf47","block_type":"box","text":"wers that BlackRock determines to be creditworthy,","page_number":531,"box":{"x":575,"y":203,"width":360,"height":13}},{"id":"f6442636-d8d5-41b1-b2e4-065c19127d1e","block_type":"box","text":"including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in an amount at least equal to","page_number":531,"box":{"x":45,"y":218,"width":901,"height":13}},{"id":"ea070cc7-b706-4104-a52d-da410cbbd799","block_type":"box","text":"the current market value of the securities loaned. No securities loan shall be made on behalf of a Fund if, as a result, the aggregate","page_number":531,"box":{"x":45,"y":234,"width":901,"height":13}},{"id":"55f997b1-ab00-41a5-ba4e-5fac04600b28","block_type":"box","text":"value of all securities loans of the particular Fund exceeds one-thir","page_number":531,"box":{"x":45,"y":249,"width":459,"height":13}},{"id":"7e8a9ac4-8948-42e1-b42d-4fd874ccc8fb","block_type":"box","text":"d of the value of such Fund’s total assets (including the value of","page_number":531,"box":{"x":505,"y":249,"width":440,"height":13}},{"id":"90d42132-d2b1-4b8a-9c37-5afb6ea1120e","block_type":"box","text":"the collateral received). A Fund may terminate a loan at any time and obtain the return of the securities loaned. Each Fund","page_number":531,"box":{"x":45,"y":265,"width":850,"height":13}},{"id":"87058f0f-8662-49fd-ae89-eec43ed87125","block_type":"box","text":"receives, by way of substitute payment, the value of any interest or cash or non-cash distributions paid on the loaned securities","page_number":531,"box":{"x":45,"y":280,"width":876,"height":13}},{"id":"f0bf446f-0101-4e0f-b9ff-705fbdc75200","block_type":"box","text":"that it would have otherwise received if the securities were not on loan.","page_number":531,"box":{"x":45,"y":296,"width":493,"height":10}},{"id":"1bbe35e9-b5aa-4bef-becb-578f28950dab","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 amount of cash","page_number":531,"box":{"x":45,"y":319,"width":880,"height":13}},{"id":"a61f8937-b644-4c93-b7c1-9574a770cbf0","block_type":"box","text":"collateral. The Funds are compensated by any positive difference between the amount earned on the reinvestment of cash","page_number":531,"box":{"x":45,"y":335,"width":841,"height":12}},{"id":"bc8e5a9a-162a-4157-8cdb-1dfe49160c10","block_type":"box","text":"collateral and the fee paid to the borrower. In the case of colla","page_number":531,"box":{"x":45,"y":350,"width":431,"height":13}},{"id":"d0bcb777-a4fc-49bf-9b69-0d2437bf86cd","block_type":"box","text":"teral other than cash, a Fund is compensated by a fee paid by the","page_number":531,"box":{"x":477,"y":350,"width":450,"height":13}},{"id":"f39959cc-fbed-4330-ae11-2de7cb2009b5","block_type":"box","text":"borrower equal to a percentage of the market value of the loaned securities. Any cash collateral received by the Fund for such","page_number":531,"box":{"x":46,"y":366,"width":869,"height":12}},{"id":"994074b7-5165-4ca0-9b5d-5a3ec8f83af5","block_type":"box","text":"loans, and uninvested cash, may be reinvested in certain short-term instruments either directly on behalf of the Fund or through","page_number":531,"box":{"x":45,"y":381,"width":885,"height":13}},{"id":"dc75e001-f143-4ef7-bbd0-c489a043589f","block_type":"box","text":"one or more joint accounts or money market funds, including thos","page_number":531,"box":{"x":46,"y":397,"width":460,"height":12}},{"id":"f78c6ced-8a73-47c2-9f8f-da4b0c6876f0","block_type":"box","text":"e affiliated with BlackRock; such investments are subject to","page_number":531,"box":{"x":507,"y":397,"width":411,"height":12}},{"id":"75cd06d3-2e9c-4438-bd06-0fea3eaa0a19","block_type":"box","text":"investment risk.","page_number":531,"box":{"x":45,"y":412,"width":109,"height":10}},{"id":"fb92a994-79da-4d32-9454-decd0e26bce6","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (i.e., the risk of losses resulting from problems in","page_number":531,"box":{"x":46,"y":435,"width":884,"height":13}},{"id":"2e70f770-b604-4fff-b094-ea0befb01c18","block_type":"box","text":"the settlement and accounting process), “gap” risk (i.e., the risk of a","page_number":531,"box":{"x":45,"y":451,"width":471,"height":13}},{"id":"30efefa7-53c2-49be-9f1e-d3fd20dc4fa5","block_type":"box","text":"mismatch between the return on cash collateral reinvestments","page_number":531,"box":{"x":522,"y":451,"width":426,"height":10}},{"id":"016d4c41-4fde-43e8-85c9-dffa785c169c","block_type":"box","text":"and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":531,"box":{"x":46,"y":466,"width":537,"height":13}},{"id":"e116f2e7-d402-4410-b3f6-e615906f1610","block_type":"box","text":"i.e","page_number":531,"box":{"x":585,"y":467,"width":15,"height":9}},{"id":"89c09435-b9cd-4b57-bf55-101c154fadda","block_type":"box","text":"., the risk of a shortfall at default when a cash","page_number":531,"box":{"x":601,"y":466,"width":317,"height":13}},{"id":"f66df794-4024-403e-94fa-88c647ef4421","block_type":"box","text":"collateral investment is denominated in a currency other than the currency of the assets being loaned due to movements in foreign","page_number":531,"box":{"x":45,"y":482,"width":900,"height":13}},{"id":"7bfdf90b-d99f-450f-becf-e71d2ba938b4","block_type":"box","text":"exchange rates), and credit, legal, counterparty and market risks (in","page_number":531,"box":{"x":46,"y":497,"width":468,"height":13}},{"id":"0c52eef8-4242-466f-bb7e-af0807762e38","block_type":"box","text":"cluding the risk that market events, including but not limited to","page_number":531,"box":{"x":514,"y":497,"width":439,"height":13}},{"id":"8b3efe2a-26a9-41cb-92f8-79626cd54428","block_type":"box","text":"corporate actions, could lead a Fund to lend securities that are trading at a premium due to increased demand, or to recall loaned","page_number":531,"box":{"x":45,"y":513,"width":897,"height":13}},{"id":"eb430cbd-3cac-44eb-b4dd-062f0479c7bd","block_type":"box","text":"securities or to lend less or none at all, which could lead to reduced securities lending revenue). If a Fund were to lend out","page_number":531,"box":{"x":46,"y":528,"width":841,"height":13}},{"id":"b1ca3bf8-a74e-4089-9443-c0e581a4e41d","block_type":"box","text":"securities that are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":531,"box":{"x":46,"y":544,"width":867,"height":13}},{"id":"1b3223e6-6220-460d-9d06-6fabe0052c09","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be less than the","page_number":531,"box":{"x":45,"y":559,"width":889,"height":13}},{"id":"6913d79a-9c0a-4496-b37f-feb1488cd3e5","block_type":"box","text":"benefit the Fund would have received from making a different election in such corporate action. If a securities lending","page_number":531,"box":{"x":46,"y":575,"width":814,"height":13}},{"id":"03f7c784-e21a-4dec-ace2-fa22dabb39e1","block_type":"box","text":"counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving collateral or in recovering the","page_number":531,"box":{"x":45,"y":590,"width":876,"height":13}},{"id":"2b5f53d9-5643-4863-bce1-39537b43237f","block_type":"box","text":"loaned securities, or to a possible loss of rights in the collateral. In the event a borrower does not return a Fund’s securities as","page_number":531,"box":{"x":45,"y":606,"width":866,"height":13}},{"id":"b9aa754d-3fa7-41fc-b1e6-530a2232caaa","block_type":"box","text":"agreed, the Fund’s ability to participate in a corporate action event may be impacted, or the Fund may experience losses if the","page_number":531,"box":{"x":46,"y":621,"width":870,"height":13}},{"id":"752b518a-40a6-47df-a754-78a7e3b1e83f","block_type":"box","text":"proceeds received from liquidating the collateral do not at least equal the value of the loaned security at the time the collateral is","page_number":531,"box":{"x":45,"y":637,"width":887,"height":13}},{"id":"e307433a-86b3-4771-8ce8-0b5d125363dd","block_type":"box","text":"liquidated, plus the transaction costs incurred in purchasing rep","page_number":531,"box":{"x":45,"y":652,"width":441,"height":13}},{"id":"9ed2503f-7d01-4461-b9ac-f010fb768740","block_type":"box","text":"lacement securities. This latter event could trigger adverse tax","page_number":531,"box":{"x":486,"y":652,"width":426,"height":13}},{"id":"fad9852b-f6e0-497d-b602-7f1b5d25936e","block_type":"box","text":"consequences for a Fund. A Fund could lose money if its short-term investment of the collateral declines in value over the period of","page_number":531,"box":{"x":45,"y":668,"width":909,"height":13}},{"id":"f7bc3ca8-22d4-40d7-80fd-b179301375ec","block_type":"box","text":"the loan. Substitute payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be","page_number":531,"box":{"x":45,"y":683,"width":869,"height":13}},{"id":"b66d800f-fa57-4870-89f6-60422242ce65","block_type":"box","text":"considered qualified dividend income, and distributions by","page_number":531,"box":{"x":45,"y":699,"width":407,"height":13}},{"id":"908e10bd-22c8-47b2-891a-87f8670833cd","block_type":"box","text":"the Fund of such substitute payments will not constitute qualified","page_number":531,"box":{"x":456,"y":699,"width":454,"height":13}},{"id":"a5bb53c8-161a-437e-ade5-44b68e6c509b","block_type":"box","text":"dividend income. Additionally, substitute payments receive","page_number":531,"box":{"x":46,"y":714,"width":407,"height":13}},{"id":"a45ac41b-54d8-4ec9-ba7f-dfc4decfd0cc","block_type":"box","text":"d by a Fund representing qualified REIT dividends paid on REIT","page_number":531,"box":{"x":454,"y":714,"width":449,"height":13}},{"id":"825b0b82-6a38-43fd-85c8-5cb2f3e12ca7","block_type":"box","text":"securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund of such substitute","page_number":531,"box":{"x":46,"y":730,"width":904,"height":13}},{"id":"60ec342c-31e7-4c0a-893a-8d0b0c1b1f9f","block_type":"box","text":"payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends paid to non-corporate","page_number":531,"box":{"x":45,"y":745,"width":840,"height":13}},{"id":"f6e005cd-cd89-4e67-b74a-0466955fbd3c","block_type":"box","text":"shareholders provided certain other requirements are satisfied. The securities lending agent will take into account the tax effects on","page_number":531,"box":{"x":46,"y":761,"width":906,"height":13}},{"id":"93d3389c-eea7-4bf6-bd66-2647d0ba6595","block_type":"box","text":"shareholders caused by these differences in connection with a Fund’","page_number":531,"box":{"x":46,"y":776,"width":467,"height":13}},{"id":"e51f543e-3779-4735-a35b-77939d7013a5","block_type":"box","text":"s securities lending program. Substitute payments received on","page_number":531,"box":{"x":515,"y":776,"width":425,"height":13}},{"id":"4d20ecad-42ef-4100-81e1-989d17ce4ba8","block_type":"box","text":"tax-exempt securities loaned out will not be tax-exempt income. There could also be changes in the status of issuers under","page_number":531,"box":{"x":45,"y":792,"width":847,"height":13}},{"id":"1092f9b3-7f56-4f5b-b8ef-a25ba37b0556","block_type":"box","text":"applicable laws and regulations, including tax regulations, that may impact the regulatory or tax treatment of loaned securities","page_number":531,"box":{"x":46,"y":807,"width":877,"height":13}},{"id":"cfe5ae7d-fd4f-466c-b5cc-185472e579b7","block_type":"box","text":"and could, for example, result in a delay in the payment of d","page_number":531,"box":{"x":46,"y":823,"width":419,"height":13}},{"id":"f7adf80a-910b-43e1-91e8-99f9888ad8ea","block_type":"box","text":"ividend equivalent payments owed to a Fund (as permitted by","page_number":531,"box":{"x":465,"y":823,"width":429,"height":13}},{"id":"5a4c7f80-9931-4f62-8e5d-c7e3827fcd99","block_type":"box","text":"applicable law).","page_number":531,"box":{"x":46,"y":838,"width":108,"height":13}},{"id":"3e94bee7-a401-47d9-bdc5-d63a6e5ff3c9","block_type":"box","text":"Regulations adopted by global prudential regulators require cert","page_number":531,"box":{"x":46,"y":862,"width":445,"height":13}},{"id":"a8463c59-076a-40a9-ab8d-dc58f0dbd181","block_type":"box","text":"ain bank-regulated counterparties and certain of their affiliates to","page_number":531,"box":{"x":492,"y":862,"width":452,"height":13}},{"id":"fefe6750-1587-4c6b-9cb0-7bb0b5c99f51","block_type":"box","text":"include in certain financial contracts, including many securitie","page_number":531,"box":{"x":45,"y":877,"width":429,"height":13}},{"id":"c167a493-59b2-4829-b24b-c25e753dc691","block_type":"box","text":"s lending agreements, terms that delay or restrict the rights of","page_number":531,"box":{"x":475,"y":877,"width":424,"height":13}},{"id":"d1dad13a-f6cb-4990-a319-c2faccd624ea","block_type":"box","text":"II-14","page_number":531,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"85bb6d78-dded-4d50-baf7-4a4f8fad2f7b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":531,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"537e8728-58eb-46fb-b762-d2b27132f5a9","block_type":"box","text":"counterparties, such as the Fund, to terminate such agreements, fo","page_number":532,"box":{"x":45,"y":79,"width":459,"height":13}},{"id":"ea254a45-aea9-4bd3-9006-89966fa655dc","block_type":"box","text":"reclose upon collateral, exercise other default rights or restrict","page_number":532,"box":{"x":505,"y":79,"width":428,"height":13}},{"id":"68687c7b-e5cf-4658-b35b-28ea7c8753da","block_type":"box","text":"transfers of credit support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or","page_number":532,"box":{"x":45,"y":94,"width":851,"height":13}},{"id":"e21fcc5d-1f17-46ff-8735-397e03dbfb29","block_type":"box","text":"insolvency proceedings. It is possible that these requirements","page_number":532,"box":{"x":45,"y":110,"width":419,"height":13}},{"id":"9afbc2f1-52e9-41a7-b2c1-134de465e34c","block_type":"box","text":", as well as potential additional government regulation and other","page_number":532,"box":{"x":465,"y":110,"width":449,"height":13}},{"id":"40f8e952-b6ba-4173-b577-2a5be032982c","block_type":"box","text":"developments in the market, could adversely affect the Fund’s ab","page_number":532,"box":{"x":46,"y":125,"width":448,"height":13}},{"id":"d452e984-47e6-4be1-bbb5-7e09954130dd","block_type":"box","text":"ility to terminate existing securities lending agreements or to","page_number":532,"box":{"x":495,"y":125,"width":417,"height":13}},{"id":"5d93dfc3-4de6-43b3-b3e5-32bb568dbcb7","block_type":"box","text":"realize amounts to be received under such agreements. Prudential regulation may also favor lenders that can provide additional","page_number":532,"box":{"x":45,"y":141,"width":881,"height":13}},{"id":"48dc9289-5194-4d7b-b12c-987d6cac17a6","block_type":"box","text":"protections, such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":532,"box":{"x":45,"y":156,"width":888,"height":13}},{"id":"27a71ed6-28db-42bc-901c-bf1b43b1ac40","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a","page_number":532,"box":{"x":46,"y":172,"width":466,"height":13}},{"id":"dae89b6a-916e-460c-9109-05e35dd0d797","block_type":"box","text":"Fund’s investment policies and if BlackRock believes doing so","page_number":532,"box":{"x":518,"y":172,"width":427,"height":13}},{"id":"0d0668cf-2734-4179-bc8c-1f69847f7b06","block_type":"box","text":"is in the best interest of the Fund.","page_number":532,"box":{"x":45,"y":187,"width":230,"height":10}},{"id":"256413e3-3d3d-4365-93b6-b2ceaac91cb1","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction information (not","page_number":532,"box":{"x":45,"y":211,"width":853,"height":12}},{"id":"184f26ca-cfc0-48d8-a82b-afb80e4ade99","block_type":"box","text":"including party names); this may include, but is not limited to, in","page_number":532,"box":{"x":45,"y":226,"width":450,"height":13}},{"id":"95b1c9fe-1085-45cc-8552-b777d45dd9cd","block_type":"box","text":"formation about securities loans entered into in connection with","page_number":532,"box":{"x":495,"y":226,"width":445,"height":10}},{"id":"59d75c0e-7b4c-4c89-8141-b90c98b66558","block_type":"box","text":"short sales. Compliance with this rule is expected to be required in late 2028, although in response to the outcome of a legal","page_number":532,"box":{"x":46,"y":242,"width":859,"height":12}},{"id":"dc8c8223-5f7b-4cd7-808e-ca0cdf84697e","block_type":"box","text":"challenge against the rule, the SEC may amend the rule and/or delay the current expected compliance date.","page_number":532,"box":{"x":45,"y":257,"width":739,"height":13}},{"id":"e228c195-8b0f-4cf6-aa32-d0a265afeda1","block_type":"box","text":"Structured Notes.","page_number":532,"box":{"x":46,"y":280,"width":121,"height":10}},{"id":"89b213bb-5f86-4cb0-840e-ca95818d9662","block_type":"box","text":"Structured notes and other related instruments purch","page_number":532,"box":{"x":173,"y":280,"width":367,"height":13}},{"id":"9be26ae4-bbcf-43a6-a99c-f47346386978","block_type":"box","text":"ased by a Fund are generally privately negotiated debt","page_number":532,"box":{"x":541,"y":280,"width":373,"height":13}},{"id":"c31239bf-e9b4-46a8-a830-b94760a337a8","block_type":"box","text":"obligations where the principal and/or interest is determined by","page_number":532,"box":{"x":46,"y":296,"width":439,"height":13}},{"id":"e933bb04-9989-47c3-a2df-5557ccb2a3ec","block_type":"box","text":"reference to the performance of a specific asset, benchmark asset,","page_number":532,"box":{"x":489,"y":296,"width":451,"height":13}},{"id":"d64e9d21-03cc-4084-9aa6-f97b0dda211e","block_type":"box","text":"market or interest rate (“reference measure”). Issuers of structu","page_number":532,"box":{"x":45,"y":311,"width":439,"height":13}},{"id":"dbda6cee-e366-40ba-879f-16a31fbbd59a","block_type":"box","text":"red notes generally include corporations and banks. The interest","page_number":532,"box":{"x":484,"y":311,"width":445,"height":13}},{"id":"dde1e752-4227-4f04-882e-4bd7a7b1af9e","block_type":"box","text":"rate or the principal amount payable upon maturity or redemption may increase or decrease, depending upon changes in the value","page_number":532,"box":{"x":45,"y":327,"width":904,"height":13}},{"id":"1385012e-bf7e-47f6-a19a-52a1128b90c7","block_type":"box","text":"of the reference measure. The terms of a structured note may provide that, in certain circumstances, no principal is due at maturity","page_number":532,"box":{"x":46,"y":342,"width":905,"height":13}},{"id":"5587f188-3cfa-4561-8cef-16271be98e44","block_type":"box","text":"and, therefore, may result in a loss of invested capital by a Fund. The interest and/or principal payments that may be made on a","page_number":532,"box":{"x":46,"y":358,"width":884,"height":13}},{"id":"0d9b10f4-c582-429e-a8c8-ce0ca3558e49","block_type":"box","text":"structured product may vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":532,"box":{"x":46,"y":373,"width":827,"height":13}},{"id":"19a21c24-d322-4cff-addf-55a4a7a3688f","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may produce an increase or","page_number":532,"box":{"x":46,"y":397,"width":901,"height":12}},{"id":"a5af3e59-aeca-46b1-b069-bef4ee43527b","block_type":"box","text":"a decrease in the interest rate or the value of the principal at maturity. The rate of return on structured notes may be determined","page_number":532,"box":{"x":46,"y":412,"width":887,"height":13}},{"id":"f0b15393-874a-4d17-b9e3-7fb01d82161f","block_type":"box","text":"by applying a multiplier to the performance or differential performance of reference measures. Application of a multiplier involves","page_number":532,"box":{"x":46,"y":428,"width":901,"height":12}},{"id":"dce9eec5-8cb4-4b8e-b91b-c63ab23cb815","block_type":"box","text":"leverage that will serve to magnify the potential for gain and the risk of loss.","page_number":532,"box":{"x":45,"y":443,"width":527,"height":13}},{"id":"ddb9b38f-50f0-4a91-a7c1-28f0c4585e50","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product. Structured notes may","page_number":532,"box":{"x":45,"y":466,"width":881,"height":13}},{"id":"ce6188f6-dd0f-4cdf-85f4-4394afafe9d2","block_type":"box","text":"also be more volatile, less liquid, and more difficult to price accurately than less complex securities and instruments or more","page_number":532,"box":{"x":46,"y":482,"width":857,"height":13}},{"id":"8dee56c6-0923-426f-af1a-c07ff2cf15ce","block_type":"box","text":"traditional debt securities. The secondary market for structured notes could be illiquid making them difficult to sell when the Fund","page_number":532,"box":{"x":45,"y":497,"width":906,"height":13}},{"id":"8509ceae-66b2-4953-950d-d48c8012875e","block_type":"box","text":"determines to sell them. The possible lack of a liquid secondary market for structured notes and the resulting inability of the Fund","page_number":532,"box":{"x":46,"y":513,"width":899,"height":13}},{"id":"6e7d7ba9-ba36-4891-8f06-83bb6c838b5f","block_type":"box","text":"to sell a structured note could expose the Fund to losses and could make structured notes more difficult for the Fund to value","page_number":532,"box":{"x":45,"y":528,"width":868,"height":13}},{"id":"859d0560-649b-46dc-86a0-b0f17ec86333","block_type":"box","text":"accurately.","page_number":532,"box":{"x":46,"y":544,"width":73,"height":13}},{"id":"e55ac275-7573-4f65-9203-981354287127","block_type":"box","text":"Taxable Money Market Securities.","page_number":532,"box":{"x":46,"y":567,"width":241,"height":13}},{"id":"89713f93-4a43-47ce-9003-b436c2e7f2c5","block_type":"box","text":"Certain Funds may invest in a variety of taxable money market securities (“Taxable","page_number":532,"box":{"x":294,"y":567,"width":580,"height":13}},{"id":"6671c992-38a2-48f7-ade2-2bd7b59f3114","block_type":"box","text":"Securities”). The Taxable Securities in which certain Funds may invest consist of U.S. Government securities, U.S. Government","page_number":532,"box":{"x":46,"y":583,"width":878,"height":12}},{"id":"87154713-6f1c-446c-88a4-b9ee5495ab4c","block_type":"box","text":"agency securities, domestic bank certificates of deposit and bankers’ acceptances, short term corporate debt securities such as","page_number":532,"box":{"x":46,"y":598,"width":865,"height":13}},{"id":"30dce8cf-bda4-4a47-a4f1-bf5f3099aee9","block_type":"box","text":"commercial paper and repurchase agreements. These investments must have a maturity not in excess of 397 days from the date of","page_number":532,"box":{"x":45,"y":614,"width":901,"height":12}},{"id":"5fd01a87-137a-4bb7-96ea-bb6566b6bad9","block_type":"box","text":"purchase.","page_number":532,"box":{"x":45,"y":629,"width":65,"height":13}},{"id":"e04aa844-7f42-47bb-9350-991dcf530aca","block_type":"box","text":"The standards applicable to Taxable Securities in which certain Funds invest are essentially the same as those described above with","page_number":532,"box":{"x":45,"y":652,"width":907,"height":13}},{"id":"8de4cdc9-1efd-4510-91f4-3551e8f1a95f","block_type":"box","text":"respect to Municipal Securities. Certain Funds may not invest in","page_number":532,"box":{"x":45,"y":668,"width":444,"height":13}},{"id":"c488580a-9452-4fb9-8467-93a7be0116b0","block_type":"box","text":"any security issued by a depository institution unless such","page_number":532,"box":{"x":494,"y":668,"width":398,"height":13}},{"id":"d6a3d46c-5515-45bc-b13c-215b6dcf7d20","block_type":"box","text":"institution is organized and operating in the United States, has t","page_number":532,"box":{"x":45,"y":683,"width":441,"height":13}},{"id":"f545e928-be6d-46cc-85e1-4c4e7191c7c7","block_type":"box","text":"otal assets of at least $1 billion and is federally insured. Taxable","page_number":532,"box":{"x":486,"y":683,"width":443,"height":13}},{"id":"497a9a90-a415-4f41-bc49-d4c8b5516db1","block_type":"box","text":"Securities in which the Funds invest will be determined by the","page_number":532,"box":{"x":46,"y":699,"width":426,"height":13}},{"id":"f6eef692-d41e-453a-84f4-6f0e970b0a78","block_type":"box","text":"Manager to present minimal credit risks to the Fund, if required,","page_number":532,"box":{"x":477,"y":699,"width":447,"height":13}},{"id":"31ee1b3d-c20e-43fb-a954-fea4c04448af","block_type":"box","text":"and certain Funds may require that portfolio investments (or their issuers) receive minimum credit ratings from one or more","page_number":532,"box":{"x":46,"y":714,"width":858,"height":13}},{"id":"9a48c403-4891-4216-9f8f-46b38a7c998a","block_type":"box","text":"NRSROs, or if not rated, are determined by the Manager to be of comparable quality to securities that have received such","page_number":532,"box":{"x":45,"y":730,"width":846,"height":13}},{"id":"1c56fab1-38e6-480c-9e72-42a7c14a4ee3","block_type":"box","text":"rating(s).","page_number":532,"box":{"x":45,"y":746,"width":61,"height":12}},{"id":"e0fdda74-cf3e-419d-bf16-e687dfe2dbd6","block_type":"box","text":"U.S. Government Obligations.","page_number":532,"box":{"x":46,"y":769,"width":212,"height":13}},{"id":"9557bd2d-9587-4d65-b2e4-f72aa975895c","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government and U.S.","page_number":532,"box":{"x":264,"y":769,"width":616,"height":13}},{"id":"c2063420-3a3f-4ee4-a0ff-91c370f323fa","block_type":"box","text":"Government agencies and instrumentalities. Obligations of certai","page_number":532,"box":{"x":46,"y":784,"width":449,"height":13}},{"id":"08baf24b-4eb3-4f90-948e-6a2ed4bc7e76","block_type":"box","text":"n agencies and instrumentalities of the U.S. Government are","page_number":532,"box":{"x":496,"y":784,"width":415,"height":13}},{"id":"3d383478-773d-42b1-a333-b5899e7adf93","block_type":"box","text":"supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of the issuer to borrow from the U.S.","page_number":532,"box":{"x":46,"y":800,"width":899,"height":13}},{"id":"bbec48a0-181c-417d-8cce-2a0aa678ec41","block_type":"box","text":"Treasury; and still others are supported only by the credit of the agency or instrumentality issuing the obligation. No assurance","page_number":532,"box":{"x":45,"y":815,"width":880,"height":13}},{"id":"a5167578-fd95-4efb-b29a-6e0e2ad027fe","block_type":"box","text":"can be given that the U.S. Government will provide financial support to U.S. Government-sponsored instrumentalities if it is not","page_number":532,"box":{"x":45,"y":831,"width":888,"height":13}},{"id":"d9cd8610-bfd9-4d0f-ac10-80979289788a","block_type":"box","text":"obligated to do so by law. Certain U.S. Treasury and agency securities may be held by trusts that issue participation certificates","page_number":532,"box":{"x":46,"y":846,"width":879,"height":13}},{"id":"5c65a921-7848-433c-99ba-181628ca695e","block_type":"box","text":"(such as Treasury income growth receipts and certificates of accrual on Treasury certificates). These certificates, as well as","page_number":532,"box":{"x":46,"y":862,"width":843,"height":13}},{"id":"0e48b486-7492-4d13-8a38-97fe8d20ea87","block_type":"box","text":"Treasury receipts and other stripped securities, represent benefic","page_number":532,"box":{"x":45,"y":877,"width":444,"height":13}},{"id":"5b188be7-38d6-49ce-8cc2-a79620025246","block_type":"box","text":"ial ownership interests in either fu","page_number":532,"box":{"x":490,"y":877,"width":235,"height":13}},{"id":"6a79f48f-7782-4b04-8f37-33d76cadbd24","block_type":"box","text":"ture interest payments or the","page_number":532,"box":{"x":725,"y":877,"width":199,"height":13}},{"id":"ea2b6465-f9e4-44a5-b768-9b5c004915f7","block_type":"box","text":"II-15","page_number":532,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"77aceea0-54e8-4fe0-a624-e086e2479730","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":532,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"157bf26a-3e04-4fe6-b757-b919191aca05","block_type":"box","text":"future principal payments on U.S. Government obligations. Th","page_number":533,"box":{"x":45,"y":79,"width":436,"height":12}},{"id":"01233310-20e5-4ff1-9041-a1d4799ed9eb","block_type":"box","text":"ese instruments are issued at a discount to their “face value” and","page_number":533,"box":{"x":481,"y":79,"width":449,"height":10}},{"id":"5bc191dc-2324-4cde-9fa7-d9f393537de3","block_type":"box","text":"may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary debt securities","page_number":533,"box":{"x":45,"y":94,"width":885,"height":13}},{"id":"04a6003c-a9a4-4d7b-878d-f531f2c568bc","block_type":"box","text":"because of the manner in which their principal and interest are returned to investors.","page_number":533,"box":{"x":46,"y":109,"width":585,"height":13}},{"id":"5ceab440-3ae4-4314-95ee-04ee1949d244","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by certain Funds include U.S. Treasury Bills, Treasury","page_number":533,"box":{"x":45,"y":131,"width":875,"height":13}},{"id":"bb4ee3ed-4e73-445e-853b-2dad78103a4e","block_type":"box","text":"Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home Administration, Export","page_number":533,"box":{"x":45,"y":147,"width":883,"height":12}},{"id":"e96a24ac-4c55-42bc-a971-e31a83652602","block_type":"box","text":"Import Bank of the United States, Small Business Administration, the Government National Mortgage Association (“Ginnie","page_number":533,"box":{"x":45,"y":162,"width":860,"height":13}},{"id":"0dbd3d62-60d8-4a27-b114-7e83121586fd","block_type":"box","text":"Mae”), the Federal National Mortgage Association (“Fannie Mae","page_number":533,"box":{"x":45,"y":177,"width":457,"height":13}},{"id":"3dc9d9f0-0739-4f2e-b88c-4cc42abf9f85","block_type":"box","text":"”), Federal Financing Bank, General Services Administration,","page_number":533,"box":{"x":504,"y":177,"width":421,"height":13}},{"id":"2dd8725c-53d3-4a3c-936f-d2b55d95d1f1","block_type":"box","text":"The Co-operative Central Bank, Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation (“Freddie Mac”),","page_number":533,"box":{"x":45,"y":193,"width":876,"height":12}},{"id":"45bf597d-8783-4276-ab6f-f4a8405261bb","block_type":"box","text":"Farm Credit System and Tennessee Valley Authority. Certain Funds may also invest in mortgage-related securities issued or","page_number":533,"box":{"x":45,"y":208,"width":855,"height":13}},{"id":"8e0ee10c-ba66-4944-9ca5-1879ef61cd62","block_type":"box","text":"guaranteed by U.S. Government agencies and instrumentaliti","page_number":533,"box":{"x":45,"y":223,"width":421,"height":13}},{"id":"678092f7-a1f6-4ba5-b5fc-d7d4b7eb302f","block_type":"box","text":"es, including such obligations of Ginnie Mae, Fannie Mae and","page_number":533,"box":{"x":467,"y":223,"width":431,"height":13}},{"id":"ad092492-fcd9-4983-9de7-6a929305c2f7","block_type":"box","text":"Freddie Mac.","page_number":533,"box":{"x":45,"y":239,"width":91,"height":10}},{"id":"b250b8ad-befb-4caf-9f5d-4190d1eb5110","block_type":"box","text":"To the extent consistent with their respective investment objectives, the Funds may invest in a variety of U.S. Treasury obligations","page_number":533,"box":{"x":45,"y":261,"width":899,"height":12}},{"id":"51a7ecc7-0a6b-4af3-aa21-bb8f8668f30d","block_type":"box","text":"and obligations issued by or guaranteed by the U.S. Government or its agencies, instrumentalities or U.S. Government sponsored","page_number":533,"box":{"x":46,"y":276,"width":892,"height":13}},{"id":"518d1b4a-016b-4e54-b06e-40bf1973aeef","block_type":"box","text":"enterprises. Treasury obligations may differ in their interest rat","page_number":533,"box":{"x":46,"y":291,"width":434,"height":13}},{"id":"ed42e8dc-fc56-4fa0-be73-19898c7c521d","block_type":"box","text":"es, maturities, times of issuance and other characteristics.","page_number":533,"box":{"x":481,"y":291,"width":394,"height":13}},{"id":"68d82544-6a12-4ecf-99b2-81cde755bd48","block_type":"box","text":"Obligations of U.S. Government agencies and authorities are supported by varying degrees of credit but generally are not backed","page_number":533,"box":{"x":46,"y":307,"width":892,"height":12}},{"id":"c0d7810c-6749-4814-a118-22709f7c2c56","block_type":"box","text":"by the full faith and credit of the U.S. Government. No assurance can be given that the U.S. Government would provide financial","page_number":533,"box":{"x":46,"y":322,"width":895,"height":13}},{"id":"fff8726f-9007-49d3-ab77-3130773920c2","block_type":"box","text":"support to its agencies, instrumentalities or U.S. Government sponsored enterprises if it were not obligated to do so by law. There","page_number":533,"box":{"x":46,"y":337,"width":898,"height":13}},{"id":"4e4fa6e4-9a38-49a1-bdb2-c85ad5cde78f","block_type":"box","text":"is no assurance that these commitments will","page_number":533,"box":{"x":45,"y":353,"width":305,"height":10}},{"id":"2e3652dc-7ff1-494c-a47e-57b3c00a623c","block_type":"box","text":"be undertaken or complied with in the future.","page_number":533,"box":{"x":355,"y":353,"width":316,"height":13}},{"id":"3bc35db1-5e5d-4670-b1e8-b31d148eed2e","block_type":"box","text":"In addition, certain Funds may invest in U.S. Treasury Floating Rat","page_number":533,"box":{"x":45,"y":375,"width":466,"height":12}},{"id":"907addff-f70e-44fa-be63-413070d55d81","block_type":"box","text":"e Notes (FRNs), which are two-year notes issued by the U.S.","page_number":533,"box":{"x":512,"y":375,"width":418,"height":12}},{"id":"056a6546-570a-4a75-8a21-f9a79644838b","block_type":"box","text":"Treasury. The interest rate of an FRN changes over the life of the FRN and is the sum of an index rate and a spread. The index","page_number":533,"box":{"x":45,"y":390,"width":882,"height":13}},{"id":"0cdefe71-632b-4050-8b98-9e63d64eed20","block_type":"box","text":"rate of an FRN is tied to the highest accepted discount rate of the most recent 13-week Treasury bill and is re-set every week. The","page_number":533,"box":{"x":45,"y":405,"width":898,"height":13}},{"id":"69d26af9-de7c-4cf5-ab8e-aa18b1d4959d","block_type":"box","text":"spread is a rate applied to the index rate. The spread stays the same for the life of an FRN. The spread is determined at the auction","page_number":533,"box":{"x":46,"y":421,"width":905,"height":13}},{"id":"15d21964-8335-467f-ad21-f85db5ec9b2a","block_type":"box","text":"where the FRN is first offered. The spread is the highest accepted di","page_number":533,"box":{"x":45,"y":436,"width":469,"height":13}},{"id":"94979442-a26f-4279-b002-5f541bdd42a6","block_type":"box","text":"scount margin in that auction. See also “Variable and Floating","page_number":533,"box":{"x":515,"y":436,"width":433,"height":13}},{"id":"b3077db3-466c-4668-a657-656ce5f9858d","block_type":"box","text":"Rate Instruments” below.","page_number":533,"box":{"x":46,"y":451,"width":177,"height":11}},{"id":"33539e69-3787-4944-a8aa-5331a2e74eb0","block_type":"box","text":"Variable and Floating Rate Instruments.","page_number":533,"box":{"x":45,"y":473,"width":284,"height":13}},{"id":"41032efd-2d12-4f31-9a91-f7f2440f7b75","block_type":"box","text":"Certain Funds may purchase variable and floating rate instruments. Variable and","page_number":533,"box":{"x":335,"y":473,"width":562,"height":13}},{"id":"377bf7c6-7cda-4aeb-a1ab-ca7cfaee683a","block_type":"box","text":"floating rate instruments are subject to the credit quality standards described in the Prospectus. In some cases, the Funds may","page_number":533,"box":{"x":45,"y":489,"width":867,"height":12}},{"id":"fc46d0b4-14f9-4911-97ce-d352c6286198","block_type":"box","text":"require that the obligation to pay the principal of the instrumen","page_number":533,"box":{"x":45,"y":504,"width":441,"height":13}},{"id":"3a5a410c-0719-424a-a443-9cb1ccada11b","block_type":"box","text":"t be backed by a letter of credit or guarantee. Such instruments","page_number":533,"box":{"x":486,"y":504,"width":435,"height":13}},{"id":"d7db63ed-8c62-46de-86ee-0e6efc83caec","block_type":"box","text":"may carry stated maturities in excess of 397 days provided that the maturity-shortening provisions stated in Rule 2a-7 are","page_number":533,"box":{"x":45,"y":519,"width":845,"height":13}},{"id":"409692fc-f97e-476b-9e3a-7ac6d0b1a44a","block_type":"box","text":"satisfied. Although a particular variable or floating rate demand instrument may not be actively traded in a secondary market, in","page_number":533,"box":{"x":46,"y":535,"width":891,"height":13}},{"id":"3f4f20f1-f8c8-4fb5-a028-d1074165f582","block_type":"box","text":"some cases, a Fund may be entitled to principal on demand and may be able to resell such notes in the dealer market.","page_number":533,"box":{"x":46,"y":550,"width":810,"height":13}},{"id":"a8fcc25a-7bf7-4326-a6b2-e116fc039043","block_type":"box","text":"Variable and floating rate instruments held by a Fund generally","page_number":533,"box":{"x":45,"y":572,"width":440,"height":13}},{"id":"b90499b7-c046-48b2-bb65-6f8f877230b0","block_type":"box","text":"may have maturities of more than 397 days provided: (i) they are","page_number":533,"box":{"x":489,"y":572,"width":452,"height":13}},{"id":"7428d30e-177a-4ede-973d-08224cc96b22","block_type":"box","text":"subject to a demand feature entitling the Fund to the payment o","page_number":533,"box":{"x":46,"y":587,"width":441,"height":13}},{"id":"5e98736a-ed2f-4e34-bea6-3902e92335a5","block_type":"box","text":"f principal and interest within 397 days of exercise, unless the","page_number":533,"box":{"x":488,"y":587,"width":426,"height":13}},{"id":"733182a2-bfae-4f70-a0ab-22d0709614b4","block_type":"box","text":"instrument is issued or guaranteed by the U.S. Government or its agencies and/or instrumentalities, and (ii) the rate of interest on","page_number":533,"box":{"x":45,"y":603,"width":892,"height":12}},{"id":"7a6ec36a-4dd0-4784-b89f-6302c2bec2b9","block_type":"box","text":"such instruments is adjusted at periodic intervals which may extend up to 397 days.","page_number":533,"box":{"x":46,"y":618,"width":579,"height":13}},{"id":"0c73cdb2-925b-4cff-af37-c40ac8092e4b","block_type":"box","text":"In determining a Fund’s weighted average portfolio maturity an","page_number":533,"box":{"x":45,"y":640,"width":431,"height":13}},{"id":"29fad04a-1cac-49c0-8da5-50782aee2fe2","block_type":"box","text":"d whether a long-term variable rate demand instrument has a","page_number":533,"box":{"x":477,"y":640,"width":415,"height":13}},{"id":"01129bdc-e0d0-47ee-89a8-4a8226952d5d","block_type":"box","text":"remaining maturity of 397 days or less, the instrument will be deemed by a Fund to have a maturity equal to the longer of the period","page_number":533,"box":{"x":45,"y":655,"width":899,"height":13}},{"id":"97c9c19b-05e3-4d98-9f42-a44b8cbc52ad","block_type":"box","text":"remaining until its next interest rate adjustment or the period remai","page_number":533,"box":{"x":45,"y":671,"width":456,"height":12}},{"id":"d4bc4385-a648-463b-a479-2c2f74458851","block_type":"box","text":"ning until the principal amount can be recovered through demand.","page_number":533,"box":{"x":502,"y":671,"width":450,"height":12}},{"id":"23cc5db9-96a4-4146-969a-6d810ccd298b","block_type":"box","text":"In determining a Fund’s weighted average portfolio maturity an","page_number":533,"box":{"x":45,"y":686,"width":431,"height":13}},{"id":"4aec9c96-b553-4516-a409-58538b9eec13","block_type":"box","text":"d whether a long-term floating rate demand instrument has a","page_number":533,"box":{"x":477,"y":686,"width":413,"height":13}},{"id":"13a81a1b-f497-4cc0-a0cc-6d7b7fe68825","block_type":"box","text":"remaining maturity of 397 days or less, the instrument will be deemed by a Fund to have a maturity equal to the period remaining","page_number":533,"box":{"x":45,"y":701,"width":881,"height":13}},{"id":"06527b1a-60a7-475c-8e11-51a1468c486a","block_type":"box","text":"until the principal amount can be recovered through demand. In additi","page_number":533,"box":{"x":46,"y":717,"width":478,"height":12}},{"id":"8c6f35e1-dcba-4d14-962d-e4acf3844b54","block_type":"box","text":"on, a variable or floating rate instrument issued or guaranteed","page_number":533,"box":{"x":525,"y":717,"width":419,"height":12}},{"id":"183c6bc1-8bf2-47fb-8c9f-ac5f03ef1ffc","block_type":"box","text":"by the U.S. Government or its agencies and/or instrumentalities will be deemed by a Fund to have a maturity equal to the period","page_number":533,"box":{"x":46,"y":732,"width":867,"height":13}},{"id":"c32d4f8d-8d67-441b-ab64-7451c1140018","block_type":"box","text":"remaining until its next interest rate adjustment (in the case of a var","page_number":533,"box":{"x":45,"y":747,"width":457,"height":13}},{"id":"46d954f3-1f99-46ff-b20f-4b0bdd12e378","block_type":"box","text":"iable rate instrument) or one day (in the case of a floating rate","page_number":533,"box":{"x":503,"y":747,"width":418,"height":13}},{"id":"b915cd37-0d87-4bd9-9cd6-d95464f1daf3","block_type":"box","text":"instrument). Variable and floating rate notes are frequently rate","page_number":533,"box":{"x":45,"y":763,"width":430,"height":13}},{"id":"d6ae0935-1511-424b-b128-42b0b06c9ced","block_type":"box","text":"d by credit rating agencies, and their issuers must satisfy the Fund’s","page_number":533,"box":{"x":476,"y":763,"width":453,"height":13}},{"id":"957af993-df6c-4de2-bff3-3fb5e074d32b","block_type":"box","text":"quality and maturity requirements. If an issuer of such a note were to default on its payment obligation, the Fund might be unable to","page_number":533,"box":{"x":46,"y":778,"width":898,"height":13}},{"id":"e1a59d5b-6fe0-47da-b473-5e8078bb811d","block_type":"box","text":"dispose of the note because of the absence of an active secondary market and might, for this or other reasons, suffer a loss.","page_number":533,"box":{"x":46,"y":794,"width":827,"height":12}},{"id":"b7635d41-70c6-4642-a656-1f4136ab8f22","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":533,"box":{"x":45,"y":815,"width":571,"height":13}},{"id":"42a69231-ce3f-4e83-8692-af9db183c084","block_type":"box","text":"A Fund may purchase or sell securities that it is","page_number":533,"box":{"x":622,"y":815,"width":326,"height":13}},{"id":"b561484a-69c2-4a9a-b010-03e1f776f6b4","block_type":"box","text":"entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a delayed delivery basis or through a","page_number":533,"box":{"x":46,"y":831,"width":872,"height":12}},{"id":"c183f44e-b673-49a5-8fb2-a4209668144e","block_type":"box","text":"forward commitment (including on a “TBA” (to be announced) basis).","page_number":533,"box":{"x":45,"y":846,"width":491,"height":13}},{"id":"6bd00117-e3a5-4f06-b74a-17a1bc5ac4af","block_type":"box","text":"These transactions involve the purchase or sale of securities","page_number":533,"box":{"x":541,"y":846,"width":411,"height":13}},{"id":"92c0e6a0-f3f4-4ca6-9e32-dbfb53202b38","block_type":"box","text":"by a Fund at an established price with payment and delivery taking place in the future. The Fund enters into these transactions to","page_number":533,"box":{"x":46,"y":861,"width":894,"height":13}},{"id":"30c69795-ba41-47ad-938c-225dba26abc8","block_type":"box","text":"obtain what is considered an advantageous price to the Fund at the time of entering into the transaction.","page_number":533,"box":{"x":46,"y":877,"width":722,"height":13}},{"id":"fefc062a-8561-4e63-afe9-44ff18972e31","block_type":"box","text":"II-16","page_number":533,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"108b047e-798c-4787-b1ef-1c4bedef75b5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":533,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4a751678-04b8-455f-8d13-fc4da8fa8f71","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal Reserve Bank of New","page_number":534,"box":{"x":45,"y":79,"width":891,"height":13}},{"id":"770e2eeb-dca4-40f4-9f8e-4b6a8872d639","block_type":"box","text":"York, a Fund or its counterparty generally will be required to post collateral when entering into certain forward-settling","page_number":534,"box":{"x":45,"y":94,"width":831,"height":13}},{"id":"19de76bf-7af0-4984-ae2f-89ec1109ab15","block_type":"box","text":"transactions, including without limitation TBA transactions.","page_number":534,"box":{"x":45,"y":110,"width":417,"height":13}},{"id":"f35196a6-f2ae-4520-8ce5-a323904e2fdd","block_type":"box","text":"There can be no assurance that a security purchased on a when-issu","page_number":534,"box":{"x":45,"y":133,"width":469,"height":12}},{"id":"3289aac0-e7ca-4abf-bbf8-b8c1d1697ab6","block_type":"box","text":"ed basis will be issued or that a security purchased or sold on a","page_number":534,"box":{"x":515,"y":133,"width":436,"height":12}},{"id":"95e30a0a-cd53-46f5-8d36-c7c114af9b76","block_type":"box","text":"delayed delivery basis or through a forward commitment will be delivered. Also, the value of securities in these transactions on the","page_number":534,"box":{"x":46,"y":148,"width":903,"height":13}},{"id":"5b8005d2-762e-4c07-8307-6710a4836d0b","block_type":"box","text":"delivery date may be more or less than the price paid by the Fund to purchase the securities. The Fund will lose money if the value","page_number":534,"box":{"x":46,"y":164,"width":901,"height":12}},{"id":"4e4cb452-fe5d-4421-a499-6a5dc266ea3a","block_type":"box","text":"of the security in such a transaction declines below the purchase p","page_number":534,"box":{"x":46,"y":179,"width":456,"height":13}},{"id":"f3281014-542a-4f7f-ae72-e78c68ad655f","block_type":"box","text":"rice and will not benefit if the value of the security appreciates","page_number":534,"box":{"x":503,"y":179,"width":429,"height":13}},{"id":"6e92088c-7989-4365-9041-02e2c49d4019","block_type":"box","text":"above the sale price during the commitment period.","page_number":534,"box":{"x":46,"y":195,"width":356,"height":12}},{"id":"22403991-7c29-44e4-a9f0-d8a9a9df1409","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment after it has been","page_number":534,"box":{"x":45,"y":218,"width":861,"height":12}},{"id":"a36e1901-c6ca-40a2-85b0-b6cde2e833f5","block_type":"box","text":"entered into, and may sell securities it has committed to purchase before those securities are delivered to the Fund on the","page_number":534,"box":{"x":46,"y":233,"width":833,"height":13}},{"id":"3782b5ec-9ac5-4946-845c-ed62ebdc9320","block_type":"box","text":"settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":534,"box":{"x":46,"y":249,"width":560,"height":12}},{"id":"eb8da7a7-73ea-4fdb-9dbe-738a94724825","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to consummate the","page_number":534,"box":{"x":45,"y":271,"width":889,"height":13}},{"id":"418245b8-eb3e-4a0f-b6c9-63758597dc57","block_type":"box","text":"trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an opportunity to obtain a price","page_number":534,"box":{"x":45,"y":287,"width":834,"height":13}},{"id":"9036df5a-01b8-4890-9f51-2f894ca358d9","block_type":"box","text":"considered to be advantageous.","page_number":534,"box":{"x":45,"y":302,"width":216,"height":13}},{"id":"bddc72b9-ed10-4dca-95ba-03ebcf8a7f4e","block_type":"box","text":"The market value of the securities underlying a commitment to pu","page_number":534,"box":{"x":45,"y":325,"width":459,"height":13}},{"id":"562eb1a6-1a7e-45d8-a166-4fdcdccc8aa0","block_type":"box","text":"rchase securities, and any subsequent fluctuations in their","page_number":534,"box":{"x":504,"y":325,"width":398,"height":13}},{"id":"23efc51b-8357-48d9-9920-86e357ceca43","block_type":"box","text":"market value, is taken into account when determining the market value of a Fund starting on the day the Fund agrees to purchase","page_number":534,"box":{"x":45,"y":341,"width":899,"height":13}},{"id":"1efa3539-6718-424e-839b-509e57820166","block_type":"box","text":"the securities. The Fund does not earn interest on the securities it h","page_number":534,"box":{"x":45,"y":356,"width":462,"height":10}},{"id":"d4bf728e-8017-4985-be59-1f36949cf925","block_type":"box","text":"as committed to purchase until they are paid for and delivered","page_number":534,"box":{"x":508,"y":356,"width":430,"height":13}},{"id":"b2a0bd31-2c89-48fb-a11c-ef9547ceefcb","block_type":"box","text":"on the settlement date.","page_number":534,"box":{"x":46,"y":372,"width":155,"height":10}},{"id":"18cdd3a3-b794-48c8-a2bc-470efbbffc43","block_type":"box","text":"Regulations adopted by global prudential regulators that are","page_number":534,"box":{"x":46,"y":395,"width":419,"height":12}},{"id":"fb399c58-3917-43d0-8982-4f1780916987","block_type":"box","text":"now in effect require certain bank-regulated counterparties and","page_number":534,"box":{"x":470,"y":395,"width":438,"height":12}},{"id":"410e82fd-ae2b-4a13-9a86-0e3804e22f02","block_type":"box","text":"certain of their affiliates to include in certain financial contra","page_number":534,"box":{"x":45,"y":410,"width":421,"height":10}},{"id":"53d1f5d5-4e81-494e-893a-2ebb1e45ea1f","block_type":"box","text":"cts, including many agreements with respect to when-issued, TBA and","page_number":534,"box":{"x":467,"y":410,"width":485,"height":13}},{"id":"452adcf3-c81a-4752-82ad-28a505fb53f6","block_type":"box","text":"forward commitment transactions, terms that delay or restrict","page_number":534,"box":{"x":45,"y":426,"width":430,"height":12}},{"id":"fc4fa312-cdb2-4c0e-a47c-4e00ca8b5b4d","block_type":"box","text":"the rights of counterparties, such as a Fund, to terminate such","page_number":534,"box":{"x":480,"y":426,"width":428,"height":12}},{"id":"c245e5cd-8d49-498c-b443-61a4dedaa3e2","block_type":"box","text":"agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit support in the event that the","page_number":534,"box":{"x":46,"y":441,"width":856,"height":13}},{"id":"5a80d6b7-7e29-4b69-aed7-3648b86f1bc2","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these new","page_number":534,"box":{"x":45,"y":457,"width":886,"height":12}},{"id":"c87ad1e4-7d8f-48bd-bf50-b8b1a4b6f960","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could adversely affect a","page_number":534,"box":{"x":45,"y":472,"width":908,"height":13}},{"id":"7f7834a1-5706-4cd8-8755-c0a061882f18","block_type":"box","text":"Fund’s ability to terminate existing agreements with respect to th","page_number":534,"box":{"x":45,"y":488,"width":450,"height":12}},{"id":"cf479d58-fb6e-45f6-9ee7-c35fe1925e0d","block_type":"box","text":"ese transactions or to realize amounts to be received under such","page_number":534,"box":{"x":496,"y":488,"width":440,"height":10}},{"id":"fac7d8b3-bb5f-44a0-9da3-6ed96531bfdb","block_type":"box","text":"agreements.","page_number":534,"box":{"x":46,"y":506,"width":80,"height":10}},{"id":"27f00ae7-91b8-40f1-a9b4-c51014f0aee3","block_type":"box","text":"Diversification Status","page_number":534,"box":{"x":45,"y":533,"width":155,"height":10}},{"id":"2ee14924-5df8-4616-a830-0be98edbcab4","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to continue to qualify as a regulated investment company","page_number":534,"box":{"x":45,"y":556,"width":865,"height":13}},{"id":"ceb582a5-5021-45c5-bf7b-5d7382faea79","block_type":"box","text":"under the Code. To qualify, among other requirements, each Fund will limit its investments so that at the close of each quarter of","page_number":534,"box":{"x":46,"y":572,"width":897,"height":13}},{"id":"3f08b627-74fd-40c3-bd44-78cb80c9e4b4","block_type":"box","text":"the taxable year (i) at least 50% of the market value of each Fund’s total assets is represented by cash, securities of other regulated","page_number":534,"box":{"x":45,"y":587,"width":903,"height":13}},{"id":"9b15e0c2-517b-4dac-9902-e3a19214d413","block_type":"box","text":"investment companies, U.S. Government securities and other","page_number":534,"box":{"x":45,"y":603,"width":421,"height":13}},{"id":"7f82bfab-c2db-4371-8de4-8584c72ca211","block_type":"box","text":"securities, with such other securities limited, in respect of any one","page_number":534,"box":{"x":472,"y":603,"width":452,"height":13}},{"id":"e6711944-d7eb-402b-8764-dfcb8ae948a4","block_type":"box","text":"issuer, to an amount not greater than 5% of the Fund’s assets and not greater than 10% of the outstanding voting securities of","page_number":534,"box":{"x":45,"y":618,"width":879,"height":13}},{"id":"dff7c34a-74c4-404d-8724-e9cb9068dac9","block_type":"box","text":"such issuer and (ii) not more than 25% of the value of its assets is invested in the securities (other than U.S. Government securities","page_number":534,"box":{"x":46,"y":634,"width":900,"height":12}},{"id":"4b467042-a3ff-4be6-865c-0e1615222ea4","block_type":"box","text":"or securities of other regulated investment companies) of any one","page_number":534,"box":{"x":46,"y":649,"width":451,"height":13}},{"id":"12684a7f-ef16-415b-8972-f5831ea02d84","block_type":"box","text":"issuer, any two or more issuers that the Fund controls and that","page_number":534,"box":{"x":502,"y":649,"width":435,"height":13}},{"id":"43f731bc-bff0-433a-afa5-556376ab07fb","block_type":"box","text":"are determined to be engaged in the same or similar trades or businesses or related trades or businesses or in the securities of one","page_number":534,"box":{"x":46,"y":665,"width":889,"height":13}},{"id":"cac43216-b103-4962-9dc1-eda9ef9bc7ab","block_type":"box","text":"or more qualified publicly traded partnerships (","page_number":534,"box":{"x":46,"y":680,"width":327,"height":13}},{"id":"1e8f3d97-2364-43b8-8fb8-f47cd80df17f","block_type":"box","text":"i.e.","page_number":534,"box":{"x":375,"y":681,"width":18,"height":9}},{"id":"cc085e50-1269-4e14-9715-4a66509dbe9a","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on","page_number":534,"box":{"x":396,"y":680,"width":549,"height":13}},{"id":"305e766d-4321-44ee-b4e4-54883a27e75c","block_type":"box","text":"a secondary market, other than partnerships that derive 90% of their income from interest, dividends, capital gains, and other","page_number":534,"box":{"x":46,"y":696,"width":874,"height":13}},{"id":"15e80680-c50d-4859-bfc8-5f8ed0405cdb","block_type":"box","text":"traditional permitted mutual fund income). See “Dividends and Taxes — Taxes.”","page_number":534,"box":{"x":45,"y":711,"width":564,"height":13}},{"id":"9ba447f2-31f8-46b3-b11a-4c99a13c9330","block_type":"box","text":"Each Fund has elected to be classified as “diversified” under the Investment Company Act. Each Fund must also satisfy the","page_number":534,"box":{"x":45,"y":734,"width":852,"height":13}},{"id":"d10e48a6-ddf3-4fbd-abe5-cdd8b079d434","block_type":"box","text":"diversification requirements set forth in Rule 2a-7.","page_number":534,"box":{"x":46,"y":750,"width":348,"height":13}},{"id":"d3a242d0-a3e6-4d55-8117-3ade732258d7","block_type":"box","text":"M","page_number":534,"box":{"x":302,"y":781,"width":16,"height":9}},{"id":"d6525759-7d59-45a9-8fe3-39ca3b466bbe","block_type":"box","text":"ANAGEMENT AND","page_number":534,"box":{"x":319,"y":783,"width":129,"height":7}},{"id":"a3c04a1d-a108-4a0c-a238-c7e6c68480ef","block_type":"box","text":"O","page_number":534,"box":{"x":454,"y":781,"width":12,"height":9}},{"id":"abece729-ed1a-452d-8c93-c9ac2266c9f0","block_type":"box","text":"THER","page_number":534,"box":{"x":467,"y":783,"width":39,"height":7}},{"id":"6465fa00-7483-49a6-8b87-7a81531aa695","block_type":"box","text":"S","page_number":534,"box":{"x":512,"y":781,"width":7,"height":9}},{"id":"d3566b38-d297-478a-a13e-799cb7d4cf00","block_type":"box","text":"ERVICE","page_number":534,"box":{"x":520,"y":783,"width":50,"height":7}},{"id":"f8be757f-7c9a-4c30-806c-bc474c16fad4","block_type":"box","text":"A","page_number":534,"box":{"x":575,"y":780,"width":12,"height":10}},{"id":"b0ec11d3-7c62-4346-bebe-f2db285f30c6","block_type":"box","text":"RRANGEMENTS","page_number":534,"box":{"x":588,"y":783,"width":109,"height":7}},{"id":"ae1ff5a4-1fc2-4b2b-8c08-f9c381f80380","block_type":"box","text":"Trustees and Officers","page_number":534,"box":{"x":45,"y":805,"width":155,"height":10}},{"id":"25dbfdfc-9e6e-4522-9600-7f59c9afc3e4","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘— Compensation of","page_number":534,"box":{"x":46,"y":831,"width":851,"height":12}},{"id":"bbd90bc7-629d-4722-a0cc-4701a856efac","block_type":"box","text":"Directors’” or “Information on Trustees and Officers, ‘—Biogra","page_number":534,"box":{"x":45,"y":846,"width":445,"height":13}},{"id":"0f7dfc30-aa08-4616-89aa-e28d40e05384","block_type":"box","text":"phical Information,’ ‘— Share Ownership’ and ‘— Compensation","page_number":534,"box":{"x":491,"y":846,"width":455,"height":13}},{"id":"97391cb0-a6d9-4ee9-bf0c-5470c4308b04","block_type":"box","text":"of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and certain other information relating to the Trustees","page_number":534,"box":{"x":46,"y":862,"width":878,"height":12}},{"id":"32a00bb5-deae-4b86-8d5c-934920c00a83","block_type":"box","text":"and officers of your Fund, including Trustees’ compensation.","page_number":534,"box":{"x":46,"y":877,"width":421,"height":13}},{"id":"11ff6ba8-a547-4215-92cd-6c2915ff35ce","block_type":"box","text":"II-17","page_number":534,"box":{"x":482,"y":917,"width":35,"height":9}},{"id":"f11a4364-42de-470f-8a6b-e17d0d8393cf","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":534,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d469c832-d914-4ec7-bbcb-1ed3ce716985","block_type":"box","text":"Management Arrangements","page_number":535,"box":{"x":45,"y":79,"width":201,"height":13}},{"id":"03b8a20e-aa4e-4f5e-9b5d-61aea7f87a4a","block_type":"box","text":"Management Services.","page_number":535,"box":{"x":45,"y":105,"width":153,"height":12}},{"id":"813b3ebd-2c4c-49bc-a8d8-852ef20be606","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services. Subject to the","page_number":535,"box":{"x":204,"y":105,"width":697,"height":12}},{"id":"2a4e0238-462d-478f-bf90-a357e7619c0c","block_type":"box","text":"supervision of the Board of Trustees, the Manager is responsible for the actual management of a Fund’s portfolio and reviews the","page_number":535,"box":{"x":46,"y":120,"width":896,"height":13}},{"id":"ccffb62f-876a-4764-adcc-68964086f029","block_type":"box","text":"Fund’s holdings in light of its own research analysis and that from other relevant sources. The responsibility for making decisions","page_number":535,"box":{"x":45,"y":136,"width":896,"height":12}},{"id":"8a383417-274f-4265-9be3-9dddd78d381d","block_type":"box","text":"to buy, sell or hold a particular security rests with the Manager. The Manager performs certain of the other administrative services","page_number":535,"box":{"x":45,"y":151,"width":906,"height":13}},{"id":"2dc561f0-a1a7-4af7-9ab2-bcc2e8f589e2","block_type":"box","text":"and provides all the office space, facilities, equipment and necessary personnel for management of each Fund.","page_number":535,"box":{"x":46,"y":167,"width":757,"height":12}},{"id":"617ed1c6-cf68-47a9-b268-a0323f48064e","block_type":"box","text":"Management Fee.","page_number":535,"box":{"x":45,"y":191,"width":122,"height":12}},{"id":"774c2f8b-1b77-4091-a4cc-38ae51f34ac3","block_type":"box","text":"Each Fund has entered into a management agreement with the Manager pursuant to which the Manager","page_number":535,"box":{"x":173,"y":190,"width":726,"height":13}},{"id":"17563105-693c-4185-aa18-bb6cda7eeae8","block_type":"box","text":"receives for its services to the Fund monthly compensation at an annual rate based on the average daily net assets of the Fund. For","page_number":535,"box":{"x":45,"y":205,"width":902,"height":13}},{"id":"c2daa296-30ab-4c05-840c-3ed080e438fd","block_type":"box","text":"information regarding the fees paid by your Fund to the Manager fo","page_number":535,"box":{"x":45,"y":221,"width":466,"height":13}},{"id":"a3fda660-ba43-43d8-9594-c975d94aa1a1","block_type":"box","text":"for the Fund’s last three fiscal years or other applicable periods,","page_number":535,"box":{"x":511,"y":221,"width":434,"height":13}},{"id":"7e2ccc8d-0b29-49c6-b303-aefc54895068","block_type":"box","text":"see “Management, Advisory and Other Service Arrangements — Management Agreement” or “Management and Advisory","page_number":535,"box":{"x":46,"y":236,"width":856,"height":13}},{"id":"bce5ef82-e9fa-4b71-b360-04397ca1fc2f","block_type":"box","text":"Arrangements,” as applicable, in Part I of each Fund’s SAI. Each Management Agreement obligates the Manager to provide","page_number":535,"box":{"x":45,"y":252,"width":859,"height":13}},{"id":"201b8473-9aed-4079-a965-c1714368441b","block_type":"box","text":"investment advisory services and to pay, or cause an affiliate to pay, for maintaining its staff and personnel and to provide office","page_number":535,"box":{"x":45,"y":267,"width":889,"height":13}},{"id":"4a52b6da-b280-4d1a-bdf7-82343316062e","block_type":"box","text":"space, facilities and necessary personnel for the Fund. Each Manager is also obligated to pay, or cause an affiliate to pay, the fees","page_number":535,"box":{"x":46,"y":283,"width":892,"height":13}},{"id":"8dfe12c9-4a84-485c-90de-84d27112d867","block_type":"box","text":"of all officers and Trustees of the Fund who are affiliated persons of the Manager or any affiliate.","page_number":535,"box":{"x":46,"y":298,"width":673,"height":13}},{"id":"dbf7c1c6-bd3a-462f-bb4f-950576f58da9","block_type":"box","text":"For Funds that do not have an administration agreement with the Manager, each Management Agreement obligates the Manager","page_number":535,"box":{"x":45,"y":322,"width":899,"height":12}},{"id":"933a3bf6-f718-4bef-922c-29d871f865de","block_type":"box","text":"to provide management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":535,"box":{"x":45,"y":337,"width":869,"height":13}},{"id":"bbd9346b-43a7-4f03-a0af-74f7f68f9e9c","block_type":"box","text":"connected with investment and economic research, trading and investment management of the Fund, as well as the fees of all","page_number":535,"box":{"x":45,"y":353,"width":866,"height":12}},{"id":"cf746777-2ecd-4f7e-9ca4-0e5aa535fa0e","block_type":"box","text":"Trustees of the Fund who are interested persons of the Fund. Each Fund pays all other expenses incurred in the operation of that","page_number":535,"box":{"x":45,"y":368,"width":893,"height":13}},{"id":"98b6e8e1-57e7-45d4-983e-f56e88ae5c07","block_type":"box","text":"Fund, including among other things: taxes; expenses for legal","page_number":535,"box":{"x":45,"y":384,"width":424,"height":12}},{"id":"fef7af51-781f-46b2-a8e9-09ad4a943ace","block_type":"box","text":"and auditing services; costs of preparing, printing and mailing","page_number":535,"box":{"x":474,"y":384,"width":428,"height":12}},{"id":"9fc1fcdf-90e8-44e2-a28b-98152badb56b","block_type":"box","text":"proxies, shareholder reports, prospectuses and statements of a","page_number":535,"box":{"x":45,"y":399,"width":430,"height":13}},{"id":"21106fa8-31ea-4659-ba49-96b72b8c721a","block_type":"box","text":"dditional information, except to the extent paid by BlackRock","page_number":535,"box":{"x":476,"y":399,"width":431,"height":13}},{"id":"308193ed-e992-4ad9-ba8b-b0a594d01c4d","block_type":"box","text":"Investments, LLC (the “Distributor” or “BRIL”), charges of the c","page_number":535,"box":{"x":45,"y":415,"width":455,"height":12}},{"id":"83907ddd-01de-45af-8274-ea61fd3fb6a9","block_type":"box","text":"ustodian and sub-custodian, and the transfer agent; expenses of","page_number":535,"box":{"x":501,"y":415,"width":440,"height":12}},{"id":"b25af6a9-4415-4282-8708-81e7fb0ac7ea","block_type":"box","text":"redemption of shares; Commission fees; expenses of registering the shares under Federal, state or foreign laws; fees and expenses","page_number":535,"box":{"x":45,"y":430,"width":890,"height":13}},{"id":"3ce433bf-6e15-48f0-885b-8f98599132f2","block_type":"box","text":"of Trustees who are not interested persons of a Fund as defined in the Investment Company Act; accounting and pricing costs","page_number":535,"box":{"x":46,"y":446,"width":870,"height":13}},{"id":"4eced7cd-e918-438c-8832-56e3ab1caded","block_type":"box","text":"(including the daily calculations of NAV); insurance; interest; b","page_number":535,"box":{"x":46,"y":461,"width":437,"height":13}},{"id":"82d3551f-baa5-43bf-87a4-053822c43521","block_type":"box","text":"rokerage costs; litigation and other extraordinary or non-recurring","page_number":535,"box":{"x":484,"y":461,"width":461,"height":13}},{"id":"f55ed837-5c05-43dd-ab8e-0fc15b4abc51","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Certain accounting services are provided to each Fund by The Bank of","page_number":535,"box":{"x":46,"y":477,"width":908,"height":13}},{"id":"03179443-17f1-480c-803b-180ee666321a","block_type":"box","text":"New York Mellon (“BNYM”), State Street Bank and Trust Company (“State Street”) or JPMorgan Chase Bank, N.A. (“JPM”)","page_number":535,"box":{"x":45,"y":492,"width":886,"height":13}},{"id":"6cb4d962-d9c1-48f3-98f0-042187268744","block_type":"box","text":"pursuant to an agreement between BNYM, State Street or JPM, as applicable, and each Fund. Each Fund pays a fee for these","page_number":535,"box":{"x":45,"y":508,"width":867,"height":13}},{"id":"15957ae0-c06c-469d-94a7-34f84f0490be","block_type":"box","text":"services. In addition, the Manager provides certain accounting services to each Fund and the Fund pays the Manager a fee for such","page_number":535,"box":{"x":46,"y":523,"width":905,"height":13}},{"id":"319abc7e-4fd9-46c8-89e7-f7de507e5b73","block_type":"box","text":"services. The Distributor pays certain promotional expenses of the Funds incurred in connection with the offering of shares of the","page_number":535,"box":{"x":46,"y":539,"width":896,"height":13}},{"id":"11c7ef4d-f2d7-43ca-9f3b-bb78ba1d44a9","block_type":"box","text":"Funds. Certain expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":535,"box":{"x":45,"y":554,"width":857,"height":13}},{"id":"a5e06ac7-ce6b-42b0-b4eb-03ec0d912a39","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":535,"box":{"x":45,"y":570,"width":720,"height":13}},{"id":"2746903e-ceb7-4a26-876d-2bef42b1f668","block_type":"box","text":"Organization of the Manager.","page_number":535,"box":{"x":46,"y":593,"width":206,"height":13}},{"id":"61755df7-5ebb-43c8-94b7-97959ee25d52","block_type":"box","text":"The Manager, BlackRock Advisors, LLC, is a Delaware limited liability company and an indirect,","page_number":535,"box":{"x":258,"y":593,"width":678,"height":13}},{"id":"9d09642b-aff8-4135-a3ce-cc3f55fc21b2","block_type":"box","text":"majority-owned subsidiary of BlackRock, Inc.","page_number":535,"box":{"x":45,"y":608,"width":318,"height":13}},{"id":"9685efc1-b0cf-438a-849f-6c60634cff19","block_type":"box","text":"Duration and Termination.","page_number":535,"box":{"x":45,"y":632,"width":190,"height":10}},{"id":"6018c711-8044-4a8d-87d5-4a97e82f7fdd","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement will remain in effect from","page_number":535,"box":{"x":241,"y":632,"width":704,"height":13}},{"id":"9b41ed92-988a-4b96-87bc-b73b7b882e0d","block_type":"box","text":"year to year if approved annually (a) by the Trustees or by a vote of a majority of the outstanding voting securities of the Fund and","page_number":535,"box":{"x":45,"y":647,"width":908,"height":13}},{"id":"27025aad-bcfd-453c-aeb4-dc764df3df01","block_type":"box","text":"(b) by a majority of the Trustees who are not parties to such agreement or interested persons (as defined in the Investment","page_number":535,"box":{"x":46,"y":663,"width":845,"height":13}},{"id":"6ceff26d-c274-459a-ac85-e7bf4f3edf6c","block_type":"box","text":"Company Act) of any such party. The Management Agreements are not assignable and may be terminated without penalty on","page_number":535,"box":{"x":46,"y":678,"width":875,"height":13}},{"id":"92f136f2-fe12-4d1a-90df-769ef617eafa","block_type":"box","text":"60 days’ written notice at the option of either party thereto or by the vote of the shareholders of the Fund.","page_number":535,"box":{"x":46,"y":694,"width":734,"height":13}},{"id":"3384d806-108f-41c5-a1a4-f28b79865c37","block_type":"box","text":"Other Service Arrangements","page_number":535,"box":{"x":46,"y":725,"width":203,"height":13}},{"id":"47d41dfb-9b30-4f24-b9ff-36a1eef4b0d4","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":535,"box":{"x":45,"y":751,"width":330,"height":10}},{"id":"3f47ebc3-a04d-47ab-8a38-ba5bd97905aa","block_type":"box","text":"Certain Funds have entered into an administration agreement (the","page_number":535,"box":{"x":382,"y":751,"width":457,"height":12}},{"id":"223a5e83-8371-46d5-b87d-5b0d669daed0","block_type":"box","text":"“Administration Agreement”) with an administrator identifie","page_number":535,"box":{"x":47,"y":766,"width":424,"height":13}},{"id":"a5577a34-c0d2-46b1-80d3-5a42332bfa41","block_type":"box","text":"d in the Fund’s Prospectus and Part I of the Fund’s SAI (each, an","page_number":535,"box":{"x":472,"y":766,"width":446,"height":13}},{"id":"0c3794b1-d65b-40b3-bab5-825f39390349","block_type":"box","text":"“Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the annual rate set forth in each","page_number":535,"box":{"x":47,"y":782,"width":899,"height":12}},{"id":"fc8665c2-3e5b-4a84-a136-61d6f955ffda","block_type":"box","text":"applicable Fund’s Prospectus. For information regarding any adm","page_number":535,"box":{"x":46,"y":797,"width":455,"height":13}},{"id":"ca34a6c9-2a3b-4237-8c55-f1fbfa807494","block_type":"box","text":"inistrative fees paid by your Fund to the Administrator for the","page_number":535,"box":{"x":502,"y":797,"width":429,"height":13}},{"id":"62374924-e671-4a8b-addc-08a144095f5e","block_type":"box","text":"periods indicated, see “Management, Advisory and Other Servic","page_number":535,"box":{"x":45,"y":813,"width":447,"height":12}},{"id":"a73e0159-1e4c-419c-95aa-cff84f919d6f","block_type":"box","text":"e Arrangements — Administration Agreement” or “Management","page_number":535,"box":{"x":492,"y":813,"width":454,"height":12}},{"id":"debf16c3-7afc-4a5c-b058-031156e6ee4f","block_type":"box","text":"and Advisory Arrangements,” as applicable, in Part I of that Fund’s SAI.","page_number":535,"box":{"x":46,"y":828,"width":501,"height":13}},{"id":"2f5675da-d341-4945-b919-eb8fe21606d1","block_type":"box","text":"For Funds that have an Administrator, the Administration Ag","page_number":535,"box":{"x":45,"y":851,"width":428,"height":13}},{"id":"d873ed51-f2ba-4865-bd01-04460024a168","block_type":"box","text":"reement obligates the Administrator to provide certain","page_number":535,"box":{"x":474,"y":851,"width":378,"height":13}},{"id":"1661a413-04c9-48a8-9e90-a9bf96158b27","block_type":"box","text":"administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and personnel and to provide","page_number":535,"box":{"x":46,"y":867,"width":896,"height":13}},{"id":"7cec8503-6e79-42d4-97ff-409237b7e706","block_type":"box","text":"II-18","page_number":535,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"8099196e-c597-4f82-abbb-8b14665454b4","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":535,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"736944e6-0a17-4415-b633-806217c05a50","block_type":"box","text":"office space, facilities and necessary personnel for the Fund. Each Administrator is also obligated to pay, or cause its affiliates to","page_number":536,"box":{"x":46,"y":79,"width":885,"height":13}},{"id":"11d2ccff-5374-499a-b85a-c0acd9063808","block_type":"box","text":"pay, the fees of those officers and Trustees of the Fund who are affiliated persons of the Administrator or any of its affiliates.","page_number":536,"box":{"x":45,"y":94,"width":864,"height":13}},{"id":"266b8c33-dcc8-4730-8565-d9d2cbd10b1e","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":536,"box":{"x":45,"y":117,"width":398,"height":12}},{"id":"e18e795f-2a83-464a-bf52-86ae12de3140","block_type":"box","text":"Unless earlier terminated as described below, each Administration","page_number":536,"box":{"x":449,"y":117,"width":458,"height":12}},{"id":"a2814323-211f-4c4e-9dea-7d89c6205662","block_type":"box","text":"Agreement with BlackRock will continue from year to year if approved annually (a) by the Board of Trustees of each applicable","page_number":536,"box":{"x":45,"y":132,"width":887,"height":13}},{"id":"ca3a9f2d-ea45-4629-a298-d66efb18303f","block_type":"box","text":"Fund or by a vote of a majority of the outstanding voting securities of such Fund and (b) by a majority of the Trustees of the Fund","page_number":536,"box":{"x":45,"y":148,"width":904,"height":13}},{"id":"d30c2037-7216-44fa-93ac-f70dce6fdf95","block_type":"box","text":"who are not parties to such contract or interested persons (as defined in the Investment Company Act) of any such party. Such","page_number":536,"box":{"x":45,"y":163,"width":876,"height":13}},{"id":"a76a11b5-90ba-45a7-8a27-fe7b01429303","block_type":"box","text":"contract is not assignable and may be terminated without penalty on written notice at the option of either party thereto or by the","page_number":536,"box":{"x":45,"y":179,"width":895,"height":13}},{"id":"f445372d-3fe9-4ec1-8a6a-b1c234163ebe","block_type":"box","text":"vote of the shareholders of the Fund.","page_number":536,"box":{"x":45,"y":194,"width":254,"height":10}},{"id":"7f5539d0-9176-43f3-8d82-3ab45ffd5332","block_type":"box","text":"Transfer Agency Services.","page_number":536,"box":{"x":46,"y":217,"width":176,"height":12}},{"id":"ed9ca1b4-3855-4c0d-9c24-63ca3e15489f","block_type":"box","text":"Each Fund has entered into an agreement with a transfer agent identified in the Fund’s Prospectus and","page_number":536,"box":{"x":228,"y":217,"width":708,"height":12}},{"id":"636680ef-8553-4961-b806-7c6b87a969bb","block_type":"box","text":"Part I of the Fund’s SAI, pursuant to which the transfer agent is","page_number":536,"box":{"x":45,"y":232,"width":440,"height":13}},{"id":"b744def0-c4aa-499f-a078-3b2da32c4319","block_type":"box","text":"responsible for the issuance, transfer, and redemption of shares","page_number":536,"box":{"x":490,"y":232,"width":436,"height":13}},{"id":"c1ba697d-bab3-4041-9930-559995e3878e","block_type":"box","text":"and the opening and maintenance of shareholder accounts. Each Fund pays a fee for these services.","page_number":536,"box":{"x":46,"y":248,"width":684,"height":12}},{"id":"e51f0945-2dc9-4543-ac89-e36e7d498319","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements, ‘— Transfer Agent’ or ‘— Transfer Agency Agreement’” or","page_number":536,"box":{"x":46,"y":270,"width":849,"height":13}},{"id":"66e6ab6c-24d7-4f14-ad62-87c843990838","block_type":"box","text":"“Management and Advisory Arrangements — Transfer Agency and Shareholders’ Administrative Services,” as applicable, in Part I","page_number":536,"box":{"x":47,"y":286,"width":906,"height":12}},{"id":"d4e7f8f6-b9f6-4629-8b32-ec4965ded13f","block_type":"box","text":"of each Fund’s SAI.","page_number":536,"box":{"x":46,"y":301,"width":133,"height":10}},{"id":"10dacc28-bc3f-42d6-9bbf-6dc21792332a","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":536,"box":{"x":45,"y":323,"width":337,"height":13}},{"id":"52bd4fab-5bcc-480d-a391-153b463f4d10","block_type":"box","text":"The Audit Committee of each Fund, the members of which are non-interested","page_number":536,"box":{"x":388,"y":323,"width":540,"height":13}},{"id":"2279df17-295d-43ab-a9d5-3089a41e950a","block_type":"box","text":"Trustees of the Fund, has selected an independent registered public accounting firm for that Fund that audits the Fund’s financial","page_number":536,"box":{"x":45,"y":339,"width":893,"height":13}},{"id":"6191133f-8ce3-4337-90aa-a159df66f905","block_type":"box","text":"statements. Please see the inside back cover page of your Fund’s Prospectus and Part I, Section IX “Additional Information” of","page_number":536,"box":{"x":46,"y":354,"width":879,"height":13}},{"id":"a1368a47-07bd-448e-9952-6f2988cf5c82","block_type":"box","text":"each Fund’s SAI for information on your Fund’s independent registered public accounting firm.","page_number":536,"box":{"x":46,"y":370,"width":660,"height":13}},{"id":"629d1a18-5390-42d9-8247-aeb5de020efa","block_type":"box","text":"Custodian Services.","page_number":536,"box":{"x":46,"y":392,"width":133,"height":10}},{"id":"9da5a29e-95ab-451a-83b1-9bdea3e8b828","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the inside back cover","page_number":536,"box":{"x":185,"y":392,"width":761,"height":13}},{"id":"0807a174-37d4-4420-8e3c-99d9126f882c","block_type":"box","text":"page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the Fund’s cash and securities,","page_number":536,"box":{"x":45,"y":408,"width":858,"height":13}},{"id":"420e71b4-6b40-4ca1-8ef6-02536b8a1b4e","block_type":"box","text":"handling the receipt and delivery of securities and collecting interest and dividends on the Fund’s investments. The Custodian is","page_number":536,"box":{"x":45,"y":423,"width":882,"height":13}},{"id":"3cfeb158-a2d8-4011-8a8f-7aaab548db94","block_type":"box","text":"authorized to establish separate accounts in foreign currencies","page_number":536,"box":{"x":46,"y":439,"width":428,"height":13}},{"id":"b7c6d2f5-c994-4713-a127-457c45e603ee","block_type":"box","text":"and to cause foreign securities owned by the Fund to be held in its","page_number":536,"box":{"x":480,"y":439,"width":457,"height":13}},{"id":"6e324c43-2a2c-475a-9870-bb57a8c120bb","block_type":"box","text":"offices outside the United States and with certain foreign banks and securities depositories. A Fund also may use special purpose","page_number":536,"box":{"x":46,"y":454,"width":887,"height":13}},{"id":"da65f5ed-ba60-4c90-a51a-67291e5e414e","block_type":"box","text":"custodian banks from time to time for certain assets.","page_number":536,"box":{"x":45,"y":470,"width":363,"height":10}},{"id":"e820a36b-5aed-483a-aa49-1283524741aa","block_type":"box","text":"Accounting Services.","page_number":536,"box":{"x":45,"y":493,"width":142,"height":12}},{"id":"c2952913-42fe-4fd0-b8e9-d20e67b60218","block_type":"box","text":"Each Fund has entered into an agreement with BNYM, State Street or JPM, pursuant to which BNYM, State","page_number":536,"box":{"x":193,"y":492,"width":756,"height":13}},{"id":"8b1dae6a-ff79-41d2-856b-d6bce4f6c9cb","block_type":"box","text":"Street or JPM provides certain accounting and administrative services to the Fund. Each Fund pays a fee for these services.","page_number":536,"box":{"x":46,"y":508,"width":846,"height":13}},{"id":"79ad5dbb-1e67-4a70-9c62-d73c3b80ce24","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and Advisory","page_number":536,"box":{"x":46,"y":530,"width":825,"height":13}},{"id":"e7ebc14d-52cc-474e-b28e-ba77a75aaa7a","block_type":"box","text":"Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the amounts paid by your","page_number":536,"box":{"x":45,"y":546,"width":887,"height":13}},{"id":"b142a327-7b25-4345-a2f8-cbcb7eea326d","block_type":"box","text":"Fund to BNYM, State Street or JPM, the Manager and/or the Administrator for the periods indicated.","page_number":536,"box":{"x":45,"y":561,"width":707,"height":13}},{"id":"79742a23-5795-447f-90eb-ba6a539a7a18","block_type":"box","text":"Distribution Expenses.","page_number":536,"box":{"x":45,"y":584,"width":158,"height":12}},{"id":"16410e21-24f7-400f-84bd-01535d5fd440","block_type":"box","text":"Each Fund has entered into a distribution agreem","page_number":536,"box":{"x":209,"y":584,"width":342,"height":12}},{"id":"6c0d9b44-f840-4412-a7e7-3a17103a6680","block_type":"box","text":"ent with the Distributor in connection with the","page_number":536,"box":{"x":552,"y":584,"width":324,"height":10}},{"id":"ecc4e1bd-fa37-49ef-ab30-d7e437b4de6a","block_type":"box","text":"continuous offering of each class of shares of the Fund (the “Distri","page_number":536,"box":{"x":45,"y":599,"width":461,"height":13}},{"id":"4ba39757-b534-41b8-8b2f-2329e06e8541","block_type":"box","text":"bution Agreements”). The Distribution Agreements obligate the","page_number":536,"box":{"x":507,"y":599,"width":442,"height":13}},{"id":"5671bff5-27c3-4bf8-9e24-22053255d5d2","block_type":"box","text":"Distributor to pay certain expenses in connection with the offering of each class of shares of the Funds. After the prospectuses,","page_number":536,"box":{"x":45,"y":615,"width":876,"height":12}},{"id":"d30a6dff-e6c0-418b-90b0-90681bf3cfd7","block_type":"box","text":"statements of additional information and periodic reports h","page_number":536,"box":{"x":46,"y":630,"width":412,"height":13}},{"id":"5dcd457c-5349-4f6a-84fd-7ca22049c969","block_type":"box","text":"ave been prepared, set in type and mailed to shareholders, the","page_number":536,"box":{"x":459,"y":630,"width":426,"height":13}},{"id":"e5112e13-bd1e-4081-9f54-01a1efee7eb9","block_type":"box","text":"Distributor pays for the printing and distribution of these docum","page_number":536,"box":{"x":45,"y":646,"width":450,"height":13}},{"id":"301680c6-4b65-4471-8d43-f06f0b5979f6","block_type":"box","text":"ents used in connection with the offering to dealers and investors.","page_number":536,"box":{"x":496,"y":646,"width":453,"height":13}},{"id":"7eb9da8c-1f48-4070-b3e2-9d04a44bb941","block_type":"box","text":"The Distributor also pays for other supplementary sales literature","page_number":536,"box":{"x":45,"y":661,"width":453,"height":13}},{"id":"453df82c-1d18-48c6-ba7e-06a2215df5ce","block_type":"box","text":"and advertising costs. 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While not expected, it is possible that a recipient of portfolio","page_number":542,"box":{"x":45,"y":537,"width":860,"height":12}},{"id":"80e17337-0d05-4b80-8b76-93a5cec00c97","block_type":"box","text":"holdings information for such an investment vehicle could cause harm to a Fund that is managed in an identical or substantially","page_number":542,"box":{"x":45,"y":552,"width":886,"height":13}},{"id":"6987358d-bfc9-478f-a37c-11aff3f45fc9","block_type":"box","text":"similar manner, including by trading ahead of or against such Fund based on the information received.","page_number":542,"box":{"x":46,"y":568,"width":711,"height":12}},{"id":"7e57d2ce-ef33-4484-b251-eeae361eace7","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets actually purchased or","page_number":542,"box":{"x":45,"y":591,"width":887,"height":12}},{"id":"060110ce-33b5-4c7a-b6ac-c18261c07deb","block_type":"box","text":"sold may be allocated among the accounts on a basis determined","page_number":542,"box":{"x":46,"y":606,"width":448,"height":13}},{"id":"5f1fbd2e-d3f6-470c-bc0f-1766f1030b23","block_type":"box","text":"in its good faith discretion to be equitable. 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For example, the sale of a long position or establishment of a short position by a Fund may","page_number":542,"box":{"x":46,"y":792,"width":871,"height":13}},{"id":"ce6cf5e9-e4ea-4c4d-849a-f38088465779","block_type":"box","text":"impair the price of the same security sold short by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":542,"box":{"x":45,"y":808,"width":855,"height":12}},{"id":"93e0fc78-25ab-4156-83b9-960bdbd21b85","block_type":"box","text":"purchase of a security or covering of a short position in a security by a Fund may increase the price of the same security held by","page_number":542,"box":{"x":45,"y":823,"width":884,"height":13}},{"id":"f97718cc-fb7e-4a5f-b607-74ea3748c1bc","block_type":"box","text":"(and therefore benefit) BlackRock or its other accounts or funds.","page_number":542,"box":{"x":46,"y":839,"width":446,"height":12}},{"id":"111c9982-46eb-4474-a775-092f3aefad4c","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or extend credit to","page_number":542,"box":{"x":46,"y":861,"width":891,"height":13}},{"id":"2d8e9bb8-c89d-421e-8d88-d9f96871a251","block_type":"box","text":"different parts of the capital structure of a single issuer. BlackRoc","page_number":542,"box":{"x":46,"y":877,"width":452,"height":13}},{"id":"8d8feb51-2c94-44b7-b030-afd3e1b02b30","block_type":"box","text":"k may pursue rights, provide advice or engage in other activities,","page_number":542,"box":{"x":498,"y":877,"width":446,"height":13}},{"id":"c0a94497-f0e5-4ba7-951b-f6f12530c58a","block_type":"box","text":"II-25","page_number":542,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"fcd706d5-492e-40e3-bf1d-4cae127a731c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":542,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a6eda494-a91e-4dbc-ac28-c5a827a437cc","block_type":"box","text":"or refrain from pursuing rights, providing advice or engaging in other activities, on behalf of other clients with respect to an issuer","page_number":543,"box":{"x":46,"y":79,"width":900,"height":13}},{"id":"ec1ef40a-d760-433c-9c22-147570bd8097","block_type":"box","text":"in which a Fund has invested, and such actions (or refraining from action) may have a material adverse effect on the Fund. In","page_number":543,"box":{"x":45,"y":94,"width":868,"height":13}},{"id":"32d6daa9-0ecb-4d86-aaaa-56f2c4264a9d","block_type":"box","text":"situations in which clients of BlackRock (including the Funds) hold positions in multiple parts of the capital structure of an issuer,","page_number":543,"box":{"x":46,"y":110,"width":899,"height":13}},{"id":"c6cfddb8-94d0-4d60-aaa0-3840b2b79994","block_type":"box","text":"BlackRock may not pursue certain actions or remedies that may be available to a Fund, as a result of legal and regulatory","page_number":543,"box":{"x":46,"y":125,"width":841,"height":13}},{"id":"7f98fa73-f4ca-461e-aa6a-aa9ec934e690","block_type":"box","text":"requirements or otherwise. 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BlackRock may also determine to","page_number":543,"box":{"x":45,"y":172,"width":442,"height":13}},{"id":"ddda672b-2d2e-49eb-914a-4dff58560f4e","block_type":"box","text":"rely on the actions of similarly situated holders of loans or","page_number":543,"box":{"x":492,"y":172,"width":404,"height":13}},{"id":"ec25c8f0-522c-4ed6-892e-242528a92dfa","block_type":"box","text":"securities rather than, or in connection with, taking such actions itself on behalf of the Funds.","page_number":543,"box":{"x":46,"y":187,"width":646,"height":13}},{"id":"1b4ee02a-7d54-4809-b849-56c830aeb3dd","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other funds advised by BlackRock,","page_number":543,"box":{"x":45,"y":213,"width":895,"height":13}},{"id":"3b8061b0-74a7-4ab4-b954-8bafec4d1c8b","block_type":"box","text":"including funds that are managed by one or more of the same portfolio managers, which could result in conflicts of interest","page_number":543,"box":{"x":45,"y":228,"width":855,"height":13}},{"id":"abbc805e-fb2d-4494-9018-1717da8544c3","block_type":"box","text":"relating to asset allocation, timing of Fund purchases and red","page_number":543,"box":{"x":45,"y":244,"width":424,"height":13}},{"id":"d56226e4-01aa-4ac3-839b-59c9581454f5","block_type":"box","text":"emptions, and increased remuneration and profitability for","page_number":543,"box":{"x":470,"y":244,"width":408,"height":13}},{"id":"7efa3b2f-72f5-4286-afcd-c8b4808de656","block_type":"box","text":"BlackRock and/or its personnel, including portfolio managers.","page_number":543,"box":{"x":46,"y":259,"width":430,"height":13}},{"id":"eff48248-a75d-417f-8e93-2dad3a9cbf00","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but not limited to, marketing","page_number":543,"box":{"x":45,"y":285,"width":898,"height":13}},{"id":"1d286ad4-7ab0-4671-93a2-01f66761723b","block_type":"box","text":"and promotional activities and presentations, educational train","page_number":543,"box":{"x":46,"y":300,"width":435,"height":13}},{"id":"fdc5f1d1-448a-4ed2-bf20-30646b92be51","block_type":"box","text":"ing programs and conferences) for registered representatives, other","page_number":543,"box":{"x":481,"y":300,"width":462,"height":13}},{"id":"f9c91f16-082e-46ec-8a72-df39ef2f2771","block_type":"box","text":"professionals and individual investors. 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BlackRock may (but is not required to) e","page_number":543,"box":{"x":46,"y":372,"width":444,"height":13}},{"id":"6490bf25-2e36-4a9c-9ea8-7dd539ef1b8c","block_type":"box","text":"ffect purchases and sales between BlackRock clients (“cross","page_number":543,"box":{"x":491,"y":372,"width":412,"height":13}},{"id":"28c6eda9-d929-4c99-8d62-5d21a6c042ed","block_type":"box","text":"trades”), including the Funds, if BlackRock believes such transactions are appropriate based on each party’s investment objectives","page_number":543,"box":{"x":45,"y":388,"width":899,"height":12}},{"id":"b85b28b8-e8f6-4634-9700-653d03d732c9","block_type":"box","text":"and guidelines, subject to applicable law and regulation. 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BlackRock may have a","page_number":543,"box":{"x":469,"y":419,"width":457,"height":13}},{"id":"2838b143-d27f-42f6-b580-de1765646ed2","block_type":"box","text":"potentially conflicting division of loyalties and responsibilities to the parties in such transactions.","page_number":543,"box":{"x":45,"y":434,"width":668,"height":13}},{"id":"1f028f3e-10a4-4b1b-ac97-2ea9e0351b51","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested, and those activities","page_number":543,"box":{"x":46,"y":460,"width":895,"height":12}},{"id":"d9a9033a-d8f7-47d4-bca6-816833ae9104","block_type":"box","text":"may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the Fund’s investments may be","page_number":543,"box":{"x":45,"y":475,"width":867,"height":13}},{"id":"4ad0e12b-66be-409c-9296-df9b7fb92c3f","block_type":"box","text":"negatively impacted by the activities of BlackRock or its clients, and transactions for the Fund may be impaired or effected at","page_number":543,"box":{"x":45,"y":491,"width":867,"height":12}},{"id":"ef4d0310-2e10-4dbd-97ea-0d704a8b3d18","block_type":"box","text":"prices or terms that may be less favorable than would otherwise have been the case.","page_number":543,"box":{"x":45,"y":506,"width":579,"height":13}},{"id":"4134f139-7048-4cd0-9209-3e505d76c54e","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for its proprietary","page_number":543,"box":{"x":45,"y":532,"width":874,"height":12}},{"id":"60050403-7c98-49be-a661-37c8fcf356ac","block_type":"box","text":"accounts or other accounts (including investment companies or c","page_number":543,"box":{"x":46,"y":547,"width":449,"height":13}},{"id":"0cdfb120-2dc0-48b8-a78b-2a43833451e8","block_type":"box","text":"ollective investment vehicles) that it manages or advises. 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As a result, there may be","page_number":543,"box":{"x":445,"y":666,"width":454,"height":12}},{"id":"719dd562-fe38-428a-ac4e-e8bc701efca1","block_type":"box","text":"periods, for example, when BlackRock will not initiate or recommend certain types of transactions in certain securities or","page_number":543,"box":{"x":45,"y":681,"width":841,"height":13}},{"id":"db3f2122-ac10-4bd1-89d9-c72cacda4c00","block_type":"box","text":"instruments with respect to which BlackRock is performing servi","page_number":543,"box":{"x":45,"y":697,"width":449,"height":12}},{"id":"19fd24d2-ddd5-48ad-82ef-258613b7f896","block_type":"box","text":"ces or when position limits have been reached. 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BlackRock will not be","page_number":543,"box":{"x":45,"y":784,"width":454,"height":13}},{"id":"d9ff4e67-0096-4865-ba95-81dc2f66d7f3","block_type":"box","text":"under any obligation, however, to effect transactions on behalf","page_number":543,"box":{"x":504,"y":784,"width":436,"height":13}},{"id":"0408d92f-f4bd-4a91-a5bd-1bec1da38f8f","block_type":"box","text":"of a Fund in accordance with such analysis and models. 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The net asset value and liquidity of a Fund may be impacted by","page_number":544,"box":{"x":46,"y":110,"width":861,"height":13}},{"id":"6c52ed43-8c73-41eb-978d-38abf3786e27","block_type":"box","text":"purchases and sales of the Fund by model-driven investment portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":544,"box":{"x":45,"y":125,"width":890,"height":13}},{"id":"3b555cea-4d38-408a-a49d-3ac08de539c5","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s i","page_number":544,"box":{"x":45,"y":149,"width":454,"height":12}},{"id":"637bef99-1772-4db3-b630-5920448ceb4b","block_type":"box","text":"nvestment adviser are also principals or employees of other","page_number":544,"box":{"x":500,"y":149,"width":409,"height":12}},{"id":"8e5e6c8c-3af8-432d-bc5e-c957e8a6a3ac","block_type":"box","text":"business units or entities within BlackRock. 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In such cases, such party’s interests in the transaction will be adverse to the interests of the Fund, and such party may have","page_number":544,"box":{"x":45,"y":249,"width":896,"height":13}},{"id":"40e81cc6-ba89-42f2-b94e-aa90ad00f23b","block_type":"box","text":"no incentive to assure that the Fund obtains the best possible prices or terms in connection with the transactions. 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Additionally, an affiliate of BlackRock","page_number":544,"box":{"x":46,"y":319,"width":891,"height":13}},{"id":"83f2f3d2-f5be-4c9f-9c1a-7fea6614656e","block_type":"box","text":"will create, write or issue options, which may be based on the performance of certain Funds. BlackRock has entered into an","page_number":544,"box":{"x":45,"y":335,"width":857,"height":12}},{"id":"2d80327d-ebfc-4e21-b1e8-a201ccfd72d1","block_type":"box","text":"arrangement with Markit Indices Limited, the index provider for underlying fixed-income indexes used by certain iShares ETFs,","page_number":544,"box":{"x":46,"y":350,"width":885,"height":13}},{"id":"61859a8a-c01b-4bfb-a7d6-c278d5cdf619","block_type":"box","text":"related to derivative fixed-income products that are based on su","page_number":544,"box":{"x":45,"y":366,"width":442,"height":12}},{"id":"784111d6-4f99-4e08-9135-19a2ec8e7b4a","block_type":"box","text":"ch iShares ETFs. Trading activity in these derivative products","page_number":544,"box":{"x":488,"y":366,"width":423,"height":12}},{"id":"4cb233c9-4756-46c7-9127-b872a2d5a736","block_type":"box","text":"could also potentially lead to greater liquidity for such pr","page_number":544,"box":{"x":45,"y":381,"width":396,"height":13}},{"id":"ddc1ec28-82ac-4f93-92ae-6c6e3cffce4d","block_type":"box","text":"oducts, increased purchase activity with respect to these iShares ETFs and","page_number":544,"box":{"x":442,"y":381,"width":510,"height":13}},{"id":"56f6e413-ccd9-4717-ae7a-0e7c1dde2357","block_type":"box","text":"increased assets under management for BlackRock.","page_number":544,"box":{"x":45,"y":397,"width":354,"height":12}},{"id":"c8f690fe-39fd-48ce-bcce-cb8ddabdb0c7","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other distribution by","page_number":544,"box":{"x":45,"y":420,"width":862,"height":13}},{"id":"da80b0d0-3649-4ecd-92f7-e96966c80d0b","block_type":"box","text":"BlackRock and may also enter into transactions with other clients of BlackRock where such other clients have interests adverse to","page_number":544,"box":{"x":46,"y":435,"width":899,"height":13}},{"id":"43df81f6-23fa-4148-ad11-53755213b64f","block_type":"box","text":"those of the Fund. 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To the extent such transactions are permitted, a Fund will","page_number":544,"box":{"x":45,"y":466,"width":889,"height":13}},{"id":"07a0434c-e3bc-43d8-a27a-85f133f94536","block_type":"box","text":"deal with BlackRock on an arms-length basis.","page_number":544,"box":{"x":46,"y":482,"width":316,"height":13}},{"id":"c40e7e13-1eec-4997-846e-46b48308723d","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act a","page_number":544,"box":{"x":45,"y":505,"width":453,"height":13}},{"id":"4e4fa0c2-c89a-41a0-b254-f39549c1bce3","block_type":"box","text":"s broker, dealer, agent, lender or adviser or in other commercial","page_number":544,"box":{"x":499,"y":505,"width":442,"height":13}},{"id":"d885b361-e766-40e1-8629-d92e4fccae58","block_type":"box","text":"capacities for a Fund. It is anticipated that the commissions, mar","page_number":544,"box":{"x":45,"y":521,"width":448,"height":12}},{"id":"371a8083-3054-43c9-8726-a6704df0d24f","block_type":"box","text":"k-ups, mark-downs, financial advisory fees, underwriting and","page_number":544,"box":{"x":493,"y":521,"width":427,"height":12}},{"id":"3b736a55-719a-401e-8fe9-6c563565efcd","block_type":"box","text":"placement fees, sales fees, financing and commitment fees, brok","page_number":544,"box":{"x":45,"y":536,"width":440,"height":13}},{"id":"c98b97f8-4c9a-4dda-83ca-ea1e91f6c9d5","block_type":"box","text":"erage fees, other fees, compensation or profits, rates, terms and","page_number":544,"box":{"x":486,"y":536,"width":437,"height":13}},{"id":"8e009106-e4a2-4b4f-abf5-52bf6169734b","block_type":"box","text":"conditions charged by BlackRock will be in its view commercially reasonable, although BlackRock, including its sales personnel,","page_number":544,"box":{"x":45,"y":552,"width":891,"height":12}},{"id":"602a6f81-8e5b-4ccf-b16a-cc27c68e9634","block_type":"box","text":"will have an interest in obtaining fees and other amounts that are favorable to BlackRock and such sales personnel, which may","page_number":544,"box":{"x":45,"y":567,"width":880,"height":13}},{"id":"1f47c31d-6dab-4654-a8f0-813f095a72bb","block_type":"box","text":"have an adverse effect on the Funds. Index based funds may use an index provider that is affiliated with another service provider","page_number":544,"box":{"x":45,"y":583,"width":891,"height":12}},{"id":"adf09295-1cf8-4dd4-bb3e-2c84be030a26","block_type":"box","text":"of the Fund or BlackRock that acts as a broker, dealer, agent, le","page_number":544,"box":{"x":46,"y":598,"width":442,"height":13}},{"id":"4a9e664e-e283-4dc2-9e5f-77f1a9a657fb","block_type":"box","text":"nder or in other commercial capacities for a Fund or BlackRock.","page_number":544,"box":{"x":488,"y":598,"width":447,"height":13}},{"id":"9f79b935-9825-4c55-978b-33de9760703a","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and other amounts","page_number":544,"box":{"x":46,"y":621,"width":882,"height":13}},{"id":"9e3e454c-7b0c-4312-826c-aaf0a1fd5e8c","block_type":"box","text":"that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser or in other commercial","page_number":544,"box":{"x":45,"y":637,"width":866,"height":13}},{"id":"c9f99f5f-ba37-44e9-8a70-061ad1c4bb21","block_type":"box","text":"capacities. No accounting to the Funds or their shareholders will be required, and no fees or other compensation payable by the","page_number":544,"box":{"x":45,"y":652,"width":887,"height":13}},{"id":"c9aaee62-51ba-4f67-9a75-dc1e42895664","block_type":"box","text":"Funds or their shareholders will be reduced by reason of receipt by BlackRock of any such fees or other amounts.","page_number":544,"box":{"x":45,"y":668,"width":786,"height":13}},{"id":"b9defe73-d927-4dd5-87da-6cb5f88b07eb","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds, BlackRock may","page_number":544,"box":{"x":45,"y":691,"width":898,"height":13}},{"id":"2af22567-6507-4faf-8379-a230af2239e4","block_type":"box","text":"take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":544,"box":{"x":45,"y":707,"width":627,"height":12}},{"id":"3bf9e2c4-7161-40c1-9d5f-832fb0bf5317","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own credit standing.","page_number":544,"box":{"x":45,"y":730,"width":851,"height":13}},{"id":"0e84cb2c-6f3a-4e87-b3fa-5aa4066b7f22","block_type":"box","text":"BlackRock will not have any obligation to allow its credit to be","page_number":544,"box":{"x":46,"y":745,"width":438,"height":13}},{"id":"faab13de-5068-4366-9793-e6c0bd81275e","block_type":"box","text":"used in connection with a Fund’s establishment of its business","page_number":544,"box":{"x":489,"y":745,"width":428,"height":10}},{"id":"c2b1c6dd-7bf3-4ee5-b4b4-f1417265d653","block_type":"box","text":"relationships, nor is it expected that the Fund’s counterpartie","page_number":544,"box":{"x":45,"y":761,"width":422,"height":13}},{"id":"ef51a05d-79ec-45aa-9114-c926c482f7bb","block_type":"box","text":"s will rely on the credit of BlackRock in evaluating the Fund’s","page_number":544,"box":{"x":468,"y":761,"width":426,"height":13}},{"id":"0c6c7719-54d0-4560-acb6-81b5cbbbc7fc","block_type":"box","text":"creditworthiness.","page_number":544,"box":{"x":45,"y":776,"width":118,"height":11}},{"id":"fee603fa-6d75-49f4-90c0-13ad7dac598f","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock In","page_number":544,"box":{"x":46,"y":800,"width":474,"height":13}},{"id":"3f1e36cd-05e2-411f-a437-4f24df5fbaa5","block_type":"box","text":"stitutional Trust Company, N.A. (“BTC”), as applicable, each","page_number":544,"box":{"x":521,"y":800,"width":432,"height":13}},{"id":"73aa2d7b-c59b-40ab-9ca2-c5c9231bbde6","block_type":"box","text":"an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and receives a share of securities","page_number":544,"box":{"x":46,"y":815,"width":879,"height":13}},{"id":"819af3f2-dfae-419c-8072-09fe3b105d7b","block_type":"box","text":"lending revenues from, the Funds. BlackRock will also receive compensation for managing the reinvestment of the cash collateral","page_number":544,"box":{"x":45,"y":831,"width":895,"height":13}},{"id":"84dfcf4e-7ab8-44b2-84ee-d073d361df76","block_type":"box","text":"from securities lending. There are potential conflicts of interests in managing a securities lending program, including but not","page_number":544,"box":{"x":45,"y":846,"width":859,"height":13}},{"id":"800c0b27-8b04-4e84-9dfe-0d9c2c1a51e8","block_type":"box","text":"limited to: (i) BlackRock as securities lending agent may have an incentive to, among other things, increase or decrease the amount","page_number":544,"box":{"x":45,"y":862,"width":906,"height":13}},{"id":"5cba8c21-f05d-4c99-9bbe-10784e54699c","block_type":"box","text":"of securities on loan or to lend particular securities in order to gen","page_number":544,"box":{"x":46,"y":877,"width":457,"height":13}},{"id":"21214c16-68af-401a-8f96-f7bfe32389e0","block_type":"box","text":"erate additional risk-adjusted revenue for BlackRock and its","page_number":544,"box":{"x":504,"y":877,"width":415,"height":13}},{"id":"f13545f0-a2fb-43de-a35f-f4dca6a551e1","block_type":"box","text":"II-27","page_number":544,"box":{"x":482,"y":917,"width":35,"height":9}},{"id":"3b808d35-a224-47c7-9361-2ea29c801049","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":544,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"06c85c74-9a60-4f2f-b9e6-bf7a02a34521","block_type":"box","text":"affiliates; and (ii) BlackRock as securities lending agent may have an incentive to allocate loans to clients that would provide more","page_number":545,"box":{"x":46,"y":79,"width":900,"height":13}},{"id":"1f6de691-9323-40f1-a239-cec023b40b81","block_type":"box","text":"revenue to BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":545,"box":{"x":45,"y":94,"width":873,"height":13}},{"id":"ff71bbe3-2f7a-4b49-a9c1-44f57e535b79","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":545,"box":{"x":45,"y":110,"width":653,"height":13}},{"id":"58569297-d4c0-4f9a-a442-8916796f951e","block_type":"box","text":"As part of its securities lending program, BlackRock indemn","page_number":545,"box":{"x":45,"y":135,"width":418,"height":13}},{"id":"4a2f6bbb-c1bc-47cd-8751-cde5617d9ee6","block_type":"box","text":"ifies the Funds and certain other clients and/or funds against a","page_number":545,"box":{"x":464,"y":135,"width":429,"height":13}},{"id":"1ea83c3d-deb9-46bd-80cc-16f3120b8203","block_type":"box","text":"shortfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the potential dollar exposure of","page_number":545,"box":{"x":46,"y":151,"width":884,"height":13}},{"id":"c9c715ef-73ba-4e2f-995b-f64964df7b50","block_type":"box","text":"collateral shortfall resulting from a borrower default (“shortfall ri","page_number":545,"box":{"x":45,"y":166,"width":456,"height":13}},{"id":"9f056384-1bb7-4f4a-988d-43ca9d915aa5","block_type":"box","text":"sk”) in the securities lending program. BlackRock establishes","page_number":545,"box":{"x":501,"y":166,"width":422,"height":13}},{"id":"705b0278-0b14-48f0-876a-924b07fe7f43","block_type":"box","text":"program-wide borrower limits (“credit limits","page_number":545,"box":{"x":45,"y":182,"width":312,"height":13}},{"id":"1cd5bfcc-847e-4f9f-917f-a8300bddcc61","block_type":"box","text":"”) to actively manage borrower-specific credit exposure. 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As a result, the management of program-wide exposure as well as","page_number":545,"box":{"x":461,"y":228,"width":480,"height":13}},{"id":"1b7b9375-2066-4763-b4c3-04b03d243d78","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the a","page_number":545,"box":{"x":46,"y":244,"width":426,"height":13}},{"id":"8bf03c51-b1ea-4e1e-9ac9-fcf5feb07dc2","block_type":"box","text":"mount of securities lending activity BlackRock may conduct at any","page_number":545,"box":{"x":473,"y":244,"width":464,"height":13}},{"id":"f6db20ed-71ef-4646-97d1-a827905e5c7a","block_type":"box","text":"given point in time by reducing the volume of lending opportunitie","page_number":545,"box":{"x":45,"y":259,"width":463,"height":13}},{"id":"6893d9de-3c82-4e57-93e5-dcee7390c29e","block_type":"box","text":"s for certain loans (including by asset type, collateral type and/","page_number":545,"box":{"x":509,"y":259,"width":432,"height":13}},{"id":"1472064f-cdc7-4e57-9dbb-4583f2e9add7","block_type":"box","text":"or revenue profile).","page_number":545,"box":{"x":46,"y":275,"width":131,"height":13}},{"id":"a8e377b8-7882-49b3-9ce8-4c7badca84e7","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a","page_number":545,"box":{"x":46,"y":300,"width":438,"height":13}},{"id":"ffe40c3b-ac21-41cd-ba6d-69833eea7fc2","block_type":"box","text":"Fund, discontinue lending on behalf of a Fund or terminate a","page_number":545,"box":{"x":489,"y":300,"width":423,"height":13}},{"id":"bc66dc8e-8f65-4056-9914-dde2be86945e","block_type":"box","text":"securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements and/or market rules,","page_number":545,"box":{"x":46,"y":316,"width":858,"height":13}},{"id":"f72cc0e2-988f-4ff3-90ad-f6e8bd74f8da","block_type":"box","text":"liquidity considerations, or credit considerations, which may impact Funds by reducing or eliminating the volume of lending","page_number":545,"box":{"x":45,"y":331,"width":861,"height":13}},{"id":"82f44a54-3011-4ffd-94f2-59b4846b173b","block_type":"box","text":"opportunities for certain types of loans, loans in particular markets, loans of particular securities or types of securities, or for loans","page_number":545,"box":{"x":46,"y":347,"width":903,"height":13}},{"id":"cdc35e01-2e06-4904-b8ec-c36d530c23e0","block_type":"box","text":"overall. 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In add","page_number":546,"box":{"x":46,"y":877,"width":428,"height":13}},{"id":"f5df2909-672d-4f83-b47b-66628de74a65","block_type":"box","text":"ition, from time to time, the activities of BlackRock may limit a","page_number":546,"box":{"x":475,"y":877,"width":439,"height":13}},{"id":"b8b27a24-792f-48f8-b7ee-84fdf433fb37","block_type":"box","text":"II-29","page_number":546,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"0ae0b366-6189-4777-a667-a41f8118d225","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":546,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"47616624-efba-48e7-8962-9aa7c5ff4ee8","block_type":"box","text":"Fund’s flexibility in purchases and sales of securities. As indicate","page_number":547,"box":{"x":45,"y":79,"width":445,"height":13}},{"id":"005dd9b1-29a6-4635-99e7-0a55a4306043","block_type":"box","text":"d below, BlackRock may engage in transactions with companies","page_number":547,"box":{"x":491,"y":79,"width":446,"height":13}},{"id":"d5e92462-c1c2-46d3-99d8-1195b9de22fe","block_type":"box","text":"in which BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":547,"box":{"x":45,"y":94,"width":589,"height":10}},{"id":"1e28f29e-95ac-45e8-80c0-e05a3a292b15","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the Funds. 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BlackRock and its sales personnel may directly or indirectly receive a portion of the fees and commissions","page_number":547,"box":{"x":46,"y":164,"width":895,"height":13}},{"id":"640ee93c-f2d4-4ead-8019-312c32199b9a","block_type":"box","text":"charged to the Funds or their shareholders. BlackRock and its advisory or other personnel may also benefit from increased","page_number":547,"box":{"x":45,"y":180,"width":850,"height":12}},{"id":"69d40917-fd8a-4a4f-b338-1107a4ddfe44","block_type":"box","text":"amounts of assets under management. 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While BlackRock will generally communicate its valuation information or","page_number":547,"box":{"x":46,"y":296,"width":808,"height":13}},{"id":"112e4cda-1f81-4330-b7ae-a0110ead2921","block_type":"box","text":"determinations to a Fund’s pricing vendors and/or fund accountan","page_number":547,"box":{"x":46,"y":311,"width":460,"height":13}},{"id":"58c766d1-0f01-4386-99d1-bff6ee4670e0","block_type":"box","text":"ts, there may be instances where the Fund’s pricing vendors or","page_number":547,"box":{"x":506,"y":311,"width":431,"height":13}},{"id":"af631a87-b38f-4c45-927e-7bf4576fb075","block_type":"box","text":"fund accountants assign a different valuation to a security or other investment than the valuation for such security or investment","page_number":547,"box":{"x":45,"y":327,"width":890,"height":13}},{"id":"1d97de7d-7b17-4bea-9b2f-f7449a9572e1","block_type":"box","text":"determined or recommended by BlackRock.","page_number":547,"box":{"x":46,"y":342,"width":304,"height":13}},{"id":"e2fee196-e2ad-4e11-8e2a-ff521171e91e","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their own accounts and","page_number":547,"box":{"x":46,"y":366,"width":889,"height":12}},{"id":"40c57db5-221f-4bd5-b7eb-a1fca1eac921","block_type":"box","text":"may have conflicts of interest with respect to investments made on beh","page_number":547,"box":{"x":45,"y":381,"width":490,"height":13}},{"id":"1e6d7060-d55d-47b6-be6b-0b3527509929","block_type":"box","text":"alf of a Fund. As a result of differing trading and investment","page_number":547,"box":{"x":535,"y":381,"width":417,"height":13}},{"id":"abefe84b-1131-4e71-81d5-81db8a99d0db","block_type":"box","text":"strategies or constraints, positions may be taken by directors, o","page_number":547,"box":{"x":46,"y":397,"width":436,"height":12}},{"id":"bdc862d3-9d91-4017-9970-6a5ca8b59c59","block_type":"box","text":"fficers and employees of BlackRock that are the same, different","page_number":547,"box":{"x":483,"y":397,"width":437,"height":12}},{"id":"f2c0909f-4d5a-43a9-8ab2-4846831325c2","block_type":"box","text":"from or made at different times than positions taken for the Fund. 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Each Code of Ethics is also available on","page_number":547,"box":{"x":45,"y":459,"width":906,"height":12}},{"id":"f3931bbd-95da-4937-8858-b8c90d0927ad","block_type":"box","text":"the EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying a","page_number":547,"box":{"x":45,"y":474,"width":853,"height":13}},{"id":"f56343b6-0af9-48ac-8ca7-82b89593cc8c","block_type":"box","text":"duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":547,"box":{"x":46,"y":490,"width":333,"height":12}},{"id":"78c37781-b196-4689-b8d0-d422713f63bc","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund, except that the Fund","page_number":547,"box":{"x":46,"y":513,"width":901,"height":13}},{"id":"34d34ece-9626-4a6c-adf4-da12c9a5c971","block_type":"box","text":"may in accordance with rules or guidance adopted under the Investment Company Act engage in transactions with another Fund","page_number":547,"box":{"x":45,"y":528,"width":895,"height":13}},{"id":"7417bb2c-a10c-4523-aadc-0b12238c0265","block_type":"box","text":"or accounts that are affiliated with the Fund as a result of common officers, directors, or investment advisers or pursuant to","page_number":547,"box":{"x":46,"y":544,"width":856,"height":13}},{"id":"95ce6348-1575-4483-9329-ab5179d602bd","block_type":"box","text":"exemptive orders granted to the Funds and/or BlackRock b","page_number":547,"box":{"x":46,"y":559,"width":409,"height":13}},{"id":"13c7596e-2a90-40ce-b71c-270ba4f8506f","block_type":"box","text":"y the Commission. These transactions would be effected in","page_number":547,"box":{"x":456,"y":559,"width":408,"height":13}},{"id":"ada73253-90c8-4890-a26a-c92615b03d50","block_type":"box","text":"circumstances in which BlackRock determined that it would be appropriate for the Fund to purchase and another client of","page_number":547,"box":{"x":45,"y":575,"width":851,"height":13}},{"id":"d62caab1-ef7e-4a44-aea9-6c3abb0a280c","block_type":"box","text":"BlackRock to sell, or the Fund to sell and another client of BlackRock to purchase, the same security or instrument on the same","page_number":547,"box":{"x":46,"y":590,"width":883,"height":13}},{"id":"cc4774d2-3953-4d01-8b1a-92e6aebe000a","block_type":"box","text":"day. From time to time, the activities of a Fund may be restricted b","page_number":547,"box":{"x":46,"y":606,"width":462,"height":13}},{"id":"b1666fc2-e641-4443-a19a-d4e740ef37c7","block_type":"box","text":"ecause of regulatory requirements applicable to BlackRock and/","page_number":547,"box":{"x":509,"y":606,"width":443,"height":13}},{"id":"61c235a4-8246-4f6e-945a-7c4b2f260539","block_type":"box","text":"or BlackRock’s internal policies designed to comply with, limit th","page_number":547,"box":{"x":46,"y":621,"width":453,"height":13}},{"id":"e2c50450-3fd4-48b4-a2d1-7ca3580d1719","block_type":"box","text":"e applicability of, or that otherwise relate to such requirements.","page_number":547,"box":{"x":499,"y":621,"width":439,"height":13}},{"id":"133c7988-86b7-4326-98ff-09b5772eca98","block_type":"box","text":"A client not advised by BlackRock would not be subject to some of","page_number":547,"box":{"x":45,"y":637,"width":467,"height":13}},{"id":"e5b6ea27-59a1-4abc-b6ba-a164c683f6cd","block_type":"box","text":"those considerations. There may be periods when BlackRock","page_number":547,"box":{"x":516,"y":637,"width":422,"height":13}},{"id":"20da1939-5800-4aae-8ac4-29a595a5bf41","block_type":"box","text":"may not initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":547,"box":{"x":45,"y":652,"width":843,"height":13}},{"id":"b63c4a39-643a-43b9-95e2-c6a076808fb7","block_type":"box","text":"securities or instruments issued by or related to companies for wh","page_number":547,"box":{"x":46,"y":668,"width":454,"height":13}},{"id":"30943b96-84ba-4ebb-b8a0-a4eb1fbe3cbf","block_type":"box","text":"ich BlackRock is performing advisory or other services or has","page_number":547,"box":{"x":501,"y":668,"width":425,"height":13}},{"id":"f416f060-9251-4d56-bae9-cd84e0f941b1","block_type":"box","text":"proprietary positions. For example, when BlackRock is engaged t","page_number":547,"box":{"x":45,"y":683,"width":454,"height":13}},{"id":"d83ed382-4130-4fae-9532-307efe0e35a1","block_type":"box","text":"o provide advisory or risk management services for a company,","page_number":547,"box":{"x":499,"y":683,"width":439,"height":13}},{"id":"7158190d-5ce0-4945-b24e-fe48089bd4b5","block_type":"box","text":"BlackRock may be prohibited from or limited in purchasing or selling securities of that company on behalf of a Fund, particularly","page_number":547,"box":{"x":46,"y":699,"width":900,"height":13}},{"id":"bcc19d84-6d8a-43f0-9f32-435be13a8fff","block_type":"box","text":"where such services result in BlackRock obtaining material non-","page_number":547,"box":{"x":45,"y":714,"width":444,"height":13}},{"id":"6c26a65d-2fb5-40cd-898d-8e4bc9ba8b0b","block_type":"box","text":"public information about the company (e.g., in connection with","page_number":547,"box":{"x":490,"y":714,"width":441,"height":13}},{"id":"dfb95470-8001-40b6-91ec-8c8aef207389","block_type":"box","text":"participation in a creditors’ committee). 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Therefore, BlackRock may not be able to review","page_number":548,"box":{"x":524,"y":244,"width":420,"height":12}},{"id":"8a5b7b62-06de-4d3f-8493-82efca5f20fc","block_type":"box","text":"potential investments for the Funds with the benefit of information held by certain areas of BlackRock.","page_number":548,"box":{"x":45,"y":259,"width":714,"height":13}},{"id":"84a52af5-86b0-4f94-a002-224dcb1277e0","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an information barrier to the","page_number":548,"box":{"x":46,"y":284,"width":893,"height":13}},{"id":"ad2d8d59-1c7d-41a7-b179-adcf6f88aa64","block_type":"box","text":"other side of the information barrier. 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Each Fund attempts to maintain a NAV per share of $1.00. Share purchase orders are effective on the date Federal Funds","page_number":550,"box":{"x":46,"y":258,"width":907,"height":13}},{"id":"7fbcc572-cb42-47ed-90f1-af7a87200a73","block_type":"box","text":"become available to a Fund. Generally, if Federal Funds are available to a Fund prior to the determination of NAV on any","page_number":550,"box":{"x":46,"y":274,"width":847,"height":13}},{"id":"0cccb2e5-a33a-44eb-ac70-eba33b7c73ad","block_type":"box","text":"business day, the order will be effective on that day. Except as o","page_number":550,"box":{"x":46,"y":290,"width":442,"height":12}},{"id":"4ddd8a4f-6b99-41ad-b74b-4296c380c8f3","block_type":"box","text":"therwise specified in a Fund’s Prospectus, shares purchased will","page_number":550,"box":{"x":489,"y":290,"width":439,"height":12}},{"id":"1a9c6a63-0b4e-4998-bfb9-1cd0a67ec49c","block_type":"box","text":"begin accruing dividends on the day following the date of purchase. 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Such","page_number":550,"box":{"x":498,"y":526,"width":450,"height":13}},{"id":"1754a5ac-368b-4b19-aba8-6a65636c75cb","block_type":"box","text":"Authorized Persons are authorized to designate other interm","page_number":550,"box":{"x":45,"y":542,"width":418,"height":13}},{"id":"0dac5b72-f555-43b4-a575-c2cf3bffea83","block_type":"box","text":"ediaries to receive purchase and redemption orders on the Fund’s","page_number":550,"box":{"x":464,"y":542,"width":451,"height":13}},{"id":"d4732335-aea2-4d4f-8ce3-3d2ee53b249c","block_type":"box","text":"behalf, and the Fund will be deemed to have received a purchase or red","page_number":550,"box":{"x":46,"y":557,"width":492,"height":13}},{"id":"4d13b49b-d4de-45c2-98fe-e182737b518d","block_type":"box","text":"emption order when an Authorized Person or, if applicable,","page_number":550,"box":{"x":539,"y":557,"width":413,"height":13}},{"id":"109f3777-8798-4a16-ae3d-17f808b9bb2f","block_type":"box","text":"such Authorized Person’s authorized designee, receives the ord","page_number":550,"box":{"x":46,"y":573,"width":432,"height":13}},{"id":"99c24359-74de-4b7a-8a13-7fc3a7828c51","block_type":"box","text":"er. Such customer orders will be priced at the Fund’s NAV next","page_number":550,"box":{"x":479,"y":573,"width":440,"height":13}},{"id":"0ef2257b-2040-4534-9b98-132429b1136b","block_type":"box","text":"computed after they are received by an Authorized Person or such","page_number":550,"box":{"x":45,"y":588,"width":458,"height":13}},{"id":"c9aa013b-0e92-4eb7-890b-42c7192deec2","block_type":"box","text":"Authorized Person’s authorized designee. Financial institutions","page_number":550,"box":{"x":508,"y":588,"width":434,"height":13}},{"id":"648da329-b4f9-4e79-8201-b3c8fead6305","block_type":"box","text":"may include retirement plan service providers who aggregat","page_number":550,"box":{"x":45,"y":604,"width":414,"height":13}},{"id":"f5116f54-b1a8-4dbd-9332-657f246da652","block_type":"box","text":"e purchase and redemption instructions received from numerous","page_number":550,"box":{"x":460,"y":604,"width":445,"height":13}},{"id":"52018cc9-fb1f-462a-bb8b-e23a7fcfe91b","block_type":"box","text":"retirement plans or plan participants.","page_number":550,"box":{"x":45,"y":619,"width":257,"height":13}},{"id":"f3938cd1-81db-4048-85e9-72877bdc5004","block_type":"box","text":"Investor A and Investor C Shares","page_number":550,"box":{"x":45,"y":650,"width":241,"height":10}},{"id":"14b277d9-369b-42de-a252-7dba6cde9958","block_type":"box","text":"Purchase of Investor A Shares.","page_number":550,"box":{"x":45,"y":676,"width":210,"height":10}},{"id":"3824c73a-9613-4057-9a39-26677a5454c8","block_type":"box","text":"The minimum investment for the initial purchase of shares is $1,000. There is no investment","page_number":550,"box":{"x":261,"y":675,"width":640,"height":13}},{"id":"546f7477-0176-431d-9527-7d2fbcec620f","block_type":"box","text":"minimum for employer-sponsored retirement plans (not includi","page_number":550,"box":{"x":45,"y":691,"width":439,"height":13}},{"id":"cc5bb932-5fe0-491c-bf6c-815113e164b2","block_type":"box","text":"ng SEP IRAs, SIMPLE IRAs or SARSEPs). There is no investment","page_number":550,"box":{"x":485,"y":691,"width":455,"height":13}},{"id":"196dbd7e-31b9-43a1-85df-2234a4ffb248","block_type":"box","text":"minimum for certain fee-based programs. There is a $50 minimu","page_number":550,"box":{"x":45,"y":706,"width":450,"height":13}},{"id":"6d223197-2cda-4061-8de3-033901a8dc44","block_type":"box","text":"m for subsequent investments (with the exception of certain","page_number":550,"box":{"x":496,"y":707,"width":414,"height":12}},{"id":"a0af453d-fa56-42ab-8fbd-139a52f7bda5","block_type":"box","text":"employer-sponsored retirement plans which may have a lower mini","page_number":550,"box":{"x":46,"y":722,"width":466,"height":13}},{"id":"b48081cd-0047-4707-9cf0-66dd8f52bdee","block_type":"box","text":"mum). Purchases through the Automatic Investment Plan are","page_number":550,"box":{"x":513,"y":722,"width":423,"height":13}},{"id":"e9f6a769-4ab0-4535-bd9a-be66a70fb5b9","block_type":"box","text":"subject to a lower initial purchase minimum. In addition, the m","page_number":550,"box":{"x":46,"y":738,"width":439,"height":12}},{"id":"97a4917e-6c20-45eb-b1aa-6583a243397a","block_type":"box","text":"inimum initial investment for employees of the Fund, the Fund’s","page_number":550,"box":{"x":485,"y":738,"width":444,"height":12}},{"id":"909c8721-e016-4ed3-b4e1-afcc02a50163","block_type":"box","text":"Manager, sub-adviser, BRIL or transfer agent or employees of their affiliates is $100, unless payment is made through a payroll","page_number":550,"box":{"x":45,"y":753,"width":883,"height":13}},{"id":"706ac4b5-7981-4e33-b2df-1b6c2f36bdde","block_type":"box","text":"deduction program in which case the minimum investment is $25.","page_number":550,"box":{"x":46,"y":768,"width":457,"height":13}},{"id":"93720177-50fb-44b1-a7fe-20215afac16d","block_type":"box","text":"Purchases of Investor A Shares Through Brokers.","page_number":550,"box":{"x":45,"y":792,"width":342,"height":12}},{"id":"99248781-75f4-4045-bf92-f3d340409e6d","block_type":"box","text":"It is the responsibility of brokers to transmit purchase orders and payment on a","page_number":550,"box":{"x":393,"y":792,"width":549,"height":12}},{"id":"7182e78e-218c-43f9-992a-49c4891f8cdb","block_type":"box","text":"timely basis. 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BRIL maintains its","page_number":550,"box":{"x":251,"y":861,"width":640,"height":13}},{"id":"afcff9d2-6365-44cc-b8ef-af4561141cdd","block_type":"box","text":"principal offices at 50 Hudson Yards, New York, New York 10001. Purchases may be effected on weekdays on which the NYSE","page_number":550,"box":{"x":45,"y":877,"width":898,"height":13}},{"id":"6e972cc3-6735-4c66-90a5-35ae2c716606","block_type":"box","text":"II-33","page_number":550,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"236dd1db-3017-4c33-bea7-faba1704dd98","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":550,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a6a56f2f-98a0-4122-b175-65f89a5086cd","block_type":"box","text":"is open for business (a “Business Day”). Payment for orders of Investor A Shares which are not received or accepted will be","page_number":551,"box":{"x":45,"y":79,"width":855,"height":13}},{"id":"4bc54124-ddd2-4b93-9fda-ee46600a51d2","block_type":"box","text":"returned after prompt inquiry. The issuance of shares is recorded on the books of the Fund. No certificates will be issued for","page_number":551,"box":{"x":45,"y":94,"width":862,"height":13}},{"id":"6b59cf26-b134-460d-8663-bae0b0a75b41","block_type":"box","text":"shares. Payments for Investor A Shares of the Fund may, in the di","page_number":551,"box":{"x":46,"y":110,"width":453,"height":13}},{"id":"e97dbd6f-97c6-47da-afd8-eaa6c539e62b","block_type":"box","text":"scretion of the Fund’s Manager, be made in the form of securities","page_number":551,"box":{"x":500,"y":110,"width":451,"height":13}},{"id":"d9a4f2b5-1a40-489c-8287-d9ae4b9bb213","block_type":"box","text":"that are permissible investments for the Fund. The Fund reserves the right to reject any purchase order, to modify or waive the","page_number":551,"box":{"x":45,"y":125,"width":876,"height":13}},{"id":"a49388d6-c84a-45da-a967-8704b3fe0889","block_type":"box","text":"minimum initial or subsequent investment requirement and to suspend and resume the sale of any share class of the Fund at any","page_number":551,"box":{"x":45,"y":141,"width":889,"height":13}},{"id":"ea0eed83-27fc-4a82-a5b4-a5cf4d013f36","block_type":"box","text":"time.","page_number":551,"box":{"x":45,"y":157,"width":34,"height":9}},{"id":"dd427688-743d-44a4-a657-5f95ee7312de","block_type":"box","text":"Exchange Privilege.","page_number":551,"box":{"x":45,"y":180,"width":134,"height":12}},{"id":"7c3b1e77-5420-4d3b-96bf-9d31b65df1cd","block_type":"box","text":"Unless an exemption applies, a front-end sales charg","page_number":551,"box":{"x":185,"y":180,"width":362,"height":12}},{"id":"09af755e-a0b8-4aae-94b0-1c4bb0360de2","block_type":"box","text":"e will be charged in connection with exchanges of Investor","page_number":551,"box":{"x":548,"y":180,"width":405,"height":12}},{"id":"7ac7ee7d-b178-4013-a153-78a777537f30","block_type":"box","text":"A Shares of the Fund for Investor A Shares of another fund advised by BlackRock or its affiliates that imposes such a sales charge.","page_number":551,"box":{"x":45,"y":195,"width":901,"height":13}},{"id":"2c03db33-e28c-4c99-978a-e465d642d2bb","block_type":"box","text":"Exchanges of Investor C Shares of the Fund for Investor C Shares of one of the non-money market portfolios advised by","page_number":551,"box":{"x":45,"y":211,"width":834,"height":12}},{"id":"f9282926-fc33-4875-aeee-c7bf41b8400a","block_type":"box","text":"BlackRock or its affiliates (each a “Non-Money Market Portfolio”) will be exercised at NAV. However, a contingent deferred","page_number":551,"box":{"x":46,"y":226,"width":875,"height":13}},{"id":"940de097-2681-4a30-8f5f-6197c754e4c5","block_type":"box","text":"sales charge (“CDSC”) will be charged in connection with the redemption of the Investor C Shares of the Non-Money Market","page_number":551,"box":{"x":46,"y":242,"width":875,"height":12}},{"id":"10a85da8-c664-4b3e-a440-0a22177f9967","block_type":"box","text":"Portfolio received in the exchange.","page_number":551,"box":{"x":45,"y":257,"width":238,"height":13}},{"id":"4ee22985-e2f0-4e56-92e0-81255a7dcbea","block_type":"box","text":"A CDSC of 1.00% may apply to certain redemptions of Investor C Shares of Summit Cash Reserves. The Investor C Shares CDSC","page_number":551,"box":{"x":45,"y":280,"width":905,"height":13}},{"id":"99d3f0b3-53ab-4215-bf9a-60c5ebe4b29d","block_type":"box","text":"is only charged upon redemptions of Investor C Shares within one year after you originally acquired the Investor C Shares of the","page_number":551,"box":{"x":45,"y":296,"width":890,"height":13}},{"id":"5f9c050f-85b8-4a62-a0ea-799cf6de1e2a","block_type":"box","text":"Non-Money Market Portfolio, unless you qualify for a waiver. There is no CDSC charged on redemptions if you have owned your","page_number":551,"box":{"x":45,"y":311,"width":908,"height":13}},{"id":"88f896f4-0b5e-4239-a703-a102bf658f6c","block_type":"box","text":"Investor C Shares for more than one year (as measured from your original purchase of Investor C Shares that you exchanged into","page_number":551,"box":{"x":45,"y":327,"width":897,"height":13}},{"id":"cdd2873e-9e5b-4589-add5-f20dc1879c9e","block_type":"box","text":"Investor C Shares of Summit Cash Reserves). In determining whether an Investor C Shares CDSC is applicable to a redemption,","page_number":551,"box":{"x":45,"y":342,"width":885,"height":13}},{"id":"7c5c2731-b119-4d76-8dc0-e7db8e73e6fe","block_type":"box","text":"the calculation will be determined in the manner that results in","page_number":551,"box":{"x":45,"y":358,"width":435,"height":10}},{"id":"50b47dde-de8b-4665-952c-55524c6d129f","block_type":"box","text":"the lowest possible rate being charged. The charge will be assessed","page_number":551,"box":{"x":484,"y":358,"width":460,"height":13}},{"id":"beaf2101-f8ef-4f85-ac9e-edb45f93198f","block_type":"box","text":"on an amount equal to the lesser of the proceeds of redemption or the cost of the shares being redeemed. Accordingly, no CDSC","page_number":551,"box":{"x":46,"y":373,"width":888,"height":13}},{"id":"929848d7-8f5e-4e48-ac72-c15afb378827","block_type":"box","text":"will be imposed on increases in NAV above the initial purchase price of Investor C Shares. In addition, no CDSC will be assessed","page_number":551,"box":{"x":45,"y":389,"width":894,"height":13}},{"id":"fa19f3e7-1a78-4f9e-b0e3-82110655c2e3","block_type":"box","text":"on Investor C Shares acquired through reinvestment of dividends. It will be assumed that the redemption is first of shares held for","page_number":551,"box":{"x":46,"y":404,"width":897,"height":13}},{"id":"a2fc8aa6-c14f-4d70-869e-8d341b8a8243","block_type":"box","text":"over one year or shares acquired pursuant to reinvestment of divi","page_number":551,"box":{"x":46,"y":420,"width":451,"height":13}},{"id":"bbd95099-b537-4512-a3de-fd2f31591d5c","block_type":"box","text":"dends and then of shares held longest during the one-year period.","page_number":551,"box":{"x":498,"y":420,"width":451,"height":13}},{"id":"20345188-881d-448e-9d7c-9d8beb0be477","block_type":"box","text":"A transfer of shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":551,"box":{"x":45,"y":435,"width":830,"height":10}},{"id":"e5fd1dce-d88b-49d0-92bc-4c34a0b17c16","block_type":"box","text":"redemption.","page_number":551,"box":{"x":45,"y":451,"width":83,"height":13}},{"id":"bd496e64-51a2-4b27-a3e1-fef1ca4def76","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of the Fund’s SAI for information about amounts","page_number":551,"box":{"x":46,"y":474,"width":902,"height":13}},{"id":"12cb0b9e-2ed3-4639-86a8-1392a18bcea1","block_type":"box","text":"paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":551,"box":{"x":45,"y":490,"width":565,"height":12}},{"id":"ac5a9944-c346-48c2-834e-b59d4121e5af","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares purchased through","page_number":551,"box":{"x":45,"y":513,"width":859,"height":13}},{"id":"e1cf98a3-c4c0-40d7-acad-dd919c4f40df","block_type":"box","text":"certain employer-sponsored retirement plans and fee-based programs previously approved by certain Funds and rollovers of","page_number":551,"box":{"x":45,"y":528,"width":860,"height":13}},{"id":"179bd63f-6c29-4d31-a5b7-1f8b12ac99c9","block_type":"box","text":"current investments in the Fund through such plans; 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(5) redemptions","page_number":551,"box":{"x":45,"y":590,"width":435,"height":13}},{"id":"84d662c7-149e-4dbf-8518-eb20a2d18d78","block_type":"box","text":"in connection with a shareholder’s death as long as the waiver","page_number":551,"box":{"x":485,"y":590,"width":430,"height":13}},{"id":"a0cbd102-2a1e-451b-a1b6-9b1822e8ddb4","block_type":"box","text":"request is made within one year of death or, if later, reasonably promptly following completion of probate (including in","page_number":551,"box":{"x":45,"y":606,"width":830,"height":13}},{"id":"388956b1-762e-465b-a673-378541d949bc","block_type":"box","text":"connection with the distribution of account assets to a benefic","page_number":551,"box":{"x":45,"y":621,"width":429,"height":10}},{"id":"d33b185d-384d-45a5-91bc-1c0234d41e98","block_type":"box","text":"iary of the decedent) or disability (as defined in the Code)","page_number":551,"box":{"x":475,"y":621,"width":397,"height":13}},{"id":"a41e69f0-e68f-4a73-97a0-354e9d9fba77","block_type":"box","text":"subsequent to the purchase of Investor C Shares; (6) withdrawals resulting from shareholder disability (as defined in the Code) as","page_number":551,"box":{"x":46,"y":637,"width":895,"height":13}},{"id":"4c00b919-4723-4cf7-87dc-c1b2919f21fc","block_type":"box","text":"long as the disability arose subsequent to the purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts","page_number":551,"box":{"x":45,"y":652,"width":899,"height":13}},{"id":"90b76bb7-07d5-4b54-9621-1bcc49aca562","block_type":"box","text":"with low balances as described in “Redemption of Shares” below;","page_number":551,"box":{"x":45,"y":668,"width":458,"height":13}},{"id":"4407d1ee-0803-4b34-8097-f6d714f52105","block_type":"box","text":"(8) redemptions made pursuant to a systematic withdrawal","page_number":551,"box":{"x":509,"y":668,"width":409,"height":13}},{"id":"23d182c3-b3e4-4cd4-867d-101bac12e5ad","block_type":"box","text":"plan, subject to the limitations set forth under “Systematic Withdr","page_number":551,"box":{"x":45,"y":683,"width":459,"height":13}},{"id":"595d9c4c-bd4e-4659-a451-31ac2be8fe57","block_type":"box","text":"awal Plan” below; (9) redemptions related to the payment of","page_number":551,"box":{"x":505,"y":683,"width":422,"height":13}},{"id":"4c509725-53f9-4ea4-920b-d7ce04494a58","block_type":"box","text":"BNY Mellon Investment Servicing Trust Company custodial IRA","page_number":551,"box":{"x":46,"y":699,"width":452,"height":13}},{"id":"a5d2c7f9-12fa-4a60-a323-2e955c886e9e","block_type":"box","text":"fees; and (10) redemptions when a shareholder can demonstrate","page_number":551,"box":{"x":503,"y":699,"width":443,"height":13}},{"id":"83a09033-a27e-41a7-a2d6-65202a4fe925","block_type":"box","text":"hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares acquired through the","page_number":551,"box":{"x":45,"y":714,"width":862,"height":13}},{"id":"46e191a7-af0e-47c9-aec4-79c177340d68","block_type":"box","text":"reinvestment of dividends or distributions.","page_number":551,"box":{"x":45,"y":730,"width":293,"height":10}},{"id":"918dc045-d816-4785-92e1-61ae4c6e1586","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be","page_number":551,"box":{"x":46,"y":753,"width":467,"height":13}},{"id":"59408a3a-f077-44fa-b201-947b524be2a4","block_type":"box","text":"available to customers of certain financial intermediaries, as","page_number":551,"box":{"x":518,"y":753,"width":414,"height":13}},{"id":"eb857150-c345-4c71-9351-f64da0c8e542","block_type":"box","text":"described under “Intermediary-Defined Sales Charge Waiver Polic","page_number":551,"box":{"x":46,"y":769,"width":458,"height":13}},{"id":"5049b292-188a-4adb-932b-10031e062d23","block_type":"box","text":"ies” in the Fund’s Prospectus. Please speak to your financial","page_number":551,"box":{"x":505,"y":769,"width":413,"height":13}},{"id":"ab832aa1-adf5-4b65-a5f3-6f0ac36eb530","block_type":"box","text":"intermediary for more information.","page_number":551,"box":{"x":45,"y":784,"width":245,"height":13}},{"id":"ac10ead5-e105-48af-ba10-d99124acd4c2","block_type":"box","text":"A shareholder wishing to make an exchange may do so by sending a written request to the Fund at the following address:","page_number":551,"box":{"x":45,"y":807,"width":843,"height":13}},{"id":"be030687-8de2-4413-a6d6-dd293c110852","block_type":"box","text":"BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are automatically provided with telephone","page_number":551,"box":{"x":46,"y":823,"width":873,"height":13}},{"id":"80fb6a55-865d-442e-b12f-30a06d500137","block_type":"box","text":"exchange privileges when opening an account, unless they indicate on the Application that they do not wish to use this privilege.","page_number":551,"box":{"x":46,"y":838,"width":888,"height":13}},{"id":"af1289b2-41be-4d4a-a50c-a9641fe51cbd","block_type":"box","text":"To add this feature to an existing account that previously did not provide this option, a request must be made in writing or by","page_number":551,"box":{"x":45,"y":854,"width":875,"height":13}},{"id":"022ceec7-4a69-4326-bb68-3c1638fad237","block_type":"box","text":"telephone. Once this election has been made, the sharehol","page_number":551,"box":{"x":45,"y":869,"width":400,"height":13}},{"id":"db491b1c-7d04-47d5-bb3a-887fa6e68256","block_type":"box","text":"der may simply contact the Fund by telephone at (800) 441-7762 to","page_number":551,"box":{"x":446,"y":869,"width":472,"height":13}},{"id":"c956b293-c48e-4377-982c-f9173b6ce95c","block_type":"box","text":"II-34","page_number":551,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"c360bce1-7a8e-481d-97e6-599a317e786b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":551,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5cb81248-e504-4c85-8906-90d45c9c903f","block_type":"box","text":"request the exchange. During periods of substantial economic or market change, telephone exchanges may be difficult to complete","page_number":552,"box":{"x":45,"y":79,"width":904,"height":13}},{"id":"e3c25675-87d3-40ad-ac0d-94a9378b9fc5","block_type":"box","text":"and shareholders may have to submit exchange requests in writing.","page_number":552,"box":{"x":46,"y":94,"width":464,"height":13}},{"id":"615fa43a-2882-44e6-9dc9-e7ce76c8830d","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being acquired, a new","page_number":552,"box":{"x":45,"y":118,"width":887,"height":12}},{"id":"cfbbd4dd-83a6-47c0-a0e5-b342c27fc349","block_type":"box","text":"account will be established with the same registration, dividend and capital gain options and broker of record as the account from","page_number":552,"box":{"x":46,"y":133,"width":901,"height":13}},{"id":"78932a28-b5ef-435e-af2e-86453b1f4a65","block_type":"box","text":"which shares are exchanged, unless otherwise specified in writing b","page_number":552,"box":{"x":45,"y":149,"width":465,"height":12}},{"id":"4c3b3b3c-c129-40fd-848d-6737e051c9a6","block_type":"box","text":"y the shareholder with all signatures guaranteed by an “eligible","page_number":552,"box":{"x":511,"y":149,"width":437,"height":12}},{"id":"2054188a-dbc4-4ea2-aafd-95ae4ce11e49","block_type":"box","text":"guarantor institution” as defined in Rule 17Ad-15 under the Exchange Act. In order to participate in the Automatic Investment","page_number":552,"box":{"x":45,"y":164,"width":884,"height":13}},{"id":"f07cb203-e610-41ba-99b1-eb2d0377d227","block_type":"box","text":"Program or establish a Systematic Withdrawal Plan for the new account, however, an exchanging shareholder must file a specific","page_number":552,"box":{"x":45,"y":180,"width":895,"height":12}},{"id":"590ca437-3a2f-48cb-b069-32ec3190a8f8","block_type":"box","text":"written request.","page_number":552,"box":{"x":45,"y":196,"width":108,"height":12}},{"id":"6ba8c0d7-4e1f-4460-842d-7ec2571d6dcd","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and must be legally","page_number":552,"box":{"x":45,"y":218,"width":875,"height":13}},{"id":"cfa10416-9442-42b8-9f05-a5319fd9095c","block_type":"box","text":"available for sale in the state of the investor’s residence. For Fed","page_number":552,"box":{"x":46,"y":234,"width":441,"height":10}},{"id":"c300d76f-5ab4-40eb-a862-85ee33a38717","block_type":"box","text":"eral income tax purposes, a share exchange is a taxable event and,","page_number":552,"box":{"x":488,"y":234,"width":458,"height":13}},{"id":"9d4727b9-f370-49da-83b4-7d919f98a9a5","block_type":"box","text":"accordingly, a capital gain or loss may be realized. Before making an exchange request, shareholders should consult a tax or other","page_number":552,"box":{"x":46,"y":249,"width":900,"height":13}},{"id":"f67ea4c4-1f2d-4284-bd0c-45658ac9bc7a","block_type":"box","text":"financial adviser and should consider the investment objective, policies and restrictions of the investment portfolio into which the","page_number":552,"box":{"x":45,"y":265,"width":895,"height":13}},{"id":"00018d9a-f9cb-4d56-aa05-3617a3969ec4","block_type":"box","text":"shareholder is making an exchange. Brokers may charge a fee for handling exchanges.","page_number":552,"box":{"x":46,"y":280,"width":595,"height":13}},{"id":"3848567c-d7db-4828-8c81-c76e22065247","block_type":"box","text":"The Fund reserves the right to suspend, modify or terminate t","page_number":552,"box":{"x":45,"y":304,"width":426,"height":12}},{"id":"715e6bfa-9ee4-4e12-a673-8d67992c04bd","block_type":"box","text":"he exchange privilege at any time. Notice will be given to","page_number":552,"box":{"x":472,"y":304,"width":395,"height":12}},{"id":"c15f43c6-16a3-4008-b2cc-94b0b7f2c329","block_type":"box","text":"shareholders of any material modification or termination ex","page_number":552,"box":{"x":46,"y":319,"width":416,"height":13}},{"id":"b590a9f2-1c40-42a9-972e-26fb57ec59b0","block_type":"box","text":"cept where notice is not required. The Fund reserves the right to reject","page_number":552,"box":{"x":462,"y":319,"width":485,"height":13}},{"id":"504ba536-7c58-45e6-98d3-98d0f46413f1","block_type":"box","text":"any telephone exchange request. Telephone exchanges may be subject to limitations as to amount or frequency, and to other","page_number":552,"box":{"x":46,"y":335,"width":863,"height":12}},{"id":"ecf90f84-7ae8-4558-9d8d-64bf25886d5a","block_type":"box","text":"restrictions that may be established from time to time to ensure that exchanges do not operate to the disadvantage of any portfolio","page_number":552,"box":{"x":45,"y":350,"width":905,"height":13}},{"id":"2ee9c8b9-2538-4495-92a7-2c0391915261","block_type":"box","text":"or its shareholders. The Fund, the Administrator and BRIL will employ reasonable procedures to confirm that instructions","page_number":552,"box":{"x":46,"y":366,"width":848,"height":12}},{"id":"e9554c36-ba06-4e3d-a73a-0c8c4fc636b3","block_type":"box","text":"communicated by telephone are genuine. The Fund, the Trust, t","page_number":552,"box":{"x":45,"y":381,"width":442,"height":13}},{"id":"1f6e99dc-51f4-4779-9173-3673e83a5480","block_type":"box","text":"he Administrator(s) and BRIL will not be liable for any loss,","page_number":552,"box":{"x":487,"y":381,"width":416,"height":13}},{"id":"0c2409e9-de03-4033-a96b-d153bbb5207c","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with such","page_number":552,"box":{"x":45,"y":397,"width":846,"height":12}},{"id":"984b1560-5384-4eac-b32d-91d4549b2145","block_type":"box","text":"procedures.","page_number":552,"box":{"x":45,"y":412,"width":80,"height":13}},{"id":"a4e5012d-4570-4f83-99f2-d7a2bbe031f1","block_type":"box","text":"By use of the exchange privilege, the investor authorizes the Fund’s transfer agent to act on telephonic or written exchange","page_number":552,"box":{"x":46,"y":435,"width":848,"height":13}},{"id":"d10a6641-5e6a-4ea8-94d3-97bd9a217432","block_type":"box","text":"instructions from any person representing him- or herself to be the investor and believed by the Fund’s transfer agent to be","page_number":552,"box":{"x":45,"y":451,"width":849,"height":13}},{"id":"28938ebf-a138-46f4-9641-f684ea5e1cfc","block_type":"box","text":"genuine. The records of the Fund’s transfer agent pertaining to su","page_number":552,"box":{"x":45,"y":466,"width":454,"height":13}},{"id":"dcc42004-49fa-4b95-b49a-fc5764f181cd","block_type":"box","text":"ch instructions are binding. The exchange privilege may be","page_number":552,"box":{"x":499,"y":466,"width":407,"height":13}},{"id":"29e012c3-4b2e-42a6-96a0-9d3ba02d8101","block_type":"box","text":"modified or terminated at any time upon 60 days’ notice to affected","page_number":552,"box":{"x":45,"y":482,"width":470,"height":13}},{"id":"a57da9c0-93d0-4e5c-b4bc-19353d082647","block_type":"box","text":"shareholders. The exchange privilege is only available in states","page_number":552,"box":{"x":520,"y":482,"width":431,"height":13}},{"id":"8048f49c-c592-4186-a845-76c9d8e2f93f","block_type":"box","text":"where the exchange may legally be made.","page_number":552,"box":{"x":45,"y":497,"width":287,"height":13}},{"id":"af8a8685-f3c1-42e6-b3fd-285bcb46183b","block_type":"box","text":"The redemption of shares of one fund and the subsequent investment in another fund generally will be treated as two separate","page_number":552,"box":{"x":45,"y":521,"width":874,"height":12}},{"id":"b2193b40-ccf0-41a4-96cb-e32a9f7493b0","block_type":"box","text":"transactions. Therefore, a front-end sales charge will be impo","page_number":552,"box":{"x":45,"y":536,"width":425,"height":13}},{"id":"691a0b0e-17e4-4279-9d88-6af5bf612202","block_type":"box","text":"sed (unless an exemption applies) on the purchase of Investor A or","page_number":552,"box":{"x":471,"y":536,"width":460,"height":13}},{"id":"d3e98094-e43a-4196-9f98-3d32803ecb76","block_type":"box","text":"Investor A1 Shares of a Non-Money Market Portfolio with the proceeds of a redemption of Investor A Shares of the Fund. In","page_number":552,"box":{"x":45,"y":552,"width":870,"height":12}},{"id":"6b602a1c-bf7b-4134-9297-01e3bc80968d","block_type":"box","text":"addition, when Investor C Shares of the Fund are redeemed and the proceeds are used to purchase Investor C Shares of a","page_number":552,"box":{"x":46,"y":567,"width":836,"height":13}},{"id":"a4525528-c9a3-4daa-a5f6-08efe9db37cb","block_type":"box","text":"Non-Money Market Portfolio, a CDSC will be imposed (unless an exemption applies) when the Investor C Shares of the","page_number":552,"box":{"x":45,"y":583,"width":836,"height":12}},{"id":"e289f1f5-31b6-47cd-80d9-a7b96efe1ccb","block_type":"box","text":"Non-Money Market Portfolio are redeemed.","page_number":552,"box":{"x":45,"y":598,"width":310,"height":13}},{"id":"51e13956-adf3-4f5f-844b-b2b4005762bd","block_type":"box","text":"The Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020, Investor C Shares","page_number":552,"box":{"x":45,"y":621,"width":879,"height":13}},{"id":"7cdb3a2b-e55c-4945-8d23-45d41d8559f4","block_type":"box","text":"held for approximately eight years will be converted into Investor A Shares, as set forth in the Fund’s Prospectus. In addition,","page_number":552,"box":{"x":45,"y":637,"width":868,"height":13}},{"id":"331fe7c0-9934-46b0-b98b-83bde11a9887","block_type":"box","text":"accounts that do not have a financial intermediary associated with them are not eligible to hold Investor C Shares, and any","page_number":552,"box":{"x":46,"y":652,"width":850,"height":13}},{"id":"3c744a18-fbcf-4335-908d-8b1fe9f7620c","block_type":"box","text":"Investor C Shares held in such accounts will be automatically converted to Investor A Shares.","page_number":552,"box":{"x":45,"y":668,"width":645,"height":13}},{"id":"5fb3f6d4-8c4e-44c4-9e87-82af344ff107","block_type":"box","text":"A CDSC of up to 1.00% may apply to certain redemptions of Investor A Shares of Summit Cash Reserves purchased in an","page_number":552,"box":{"x":45,"y":691,"width":851,"height":13}},{"id":"02f90953-2156-4dcd-af0a-259a4ca5595e","block_type":"box","text":"exchange transaction for Investor A Shares of another mutual fund sponsored and advised by BlackRock or its affiliates","page_number":552,"box":{"x":46,"y":707,"width":830,"height":12}},{"id":"5db697f0-eb70-4577-abf6-6ea6d3fb0327","block_type":"box","text":"(“BlackRock Fund”) where no initial sales charge was paid at the time of purchase of such fund (each, an “Investor A Load","page_number":552,"box":{"x":46,"y":722,"width":862,"height":13}},{"id":"fc5beb46-1db0-4ff2-b733-9d174edb49af","block_type":"box","text":"Waived BlackRock Portfolio”) as part of an investment of $1,","page_number":552,"box":{"x":45,"y":737,"width":430,"height":13}},{"id":"65840e01-fc65-4b34-abad-67b2a31f3df5","block_type":"box","text":"000,000 (lesser amounts may apply depending on the Investor A","page_number":552,"box":{"x":476,"y":738,"width":448,"height":12}},{"id":"49683c21-974d-4d32-af96-a798052652cf","block_type":"box","text":"Load-Waived BlackRock Portfolio) or more. The Investor A Shares CDSC is only charged upon redemptions of Investor A Shares","page_number":552,"box":{"x":46,"y":753,"width":899,"height":13}},{"id":"540570f5-a74b-4e81-92f1-8e930f0ce433","block_type":"box","text":"within 18 months after you originally acquired such Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a","page_number":552,"box":{"x":45,"y":769,"width":871,"height":13}},{"id":"e42e8daf-553c-427f-8971-5b6c74cd2263","block_type":"box","text":"shorter holding period may apply depending on the Invest","page_number":552,"box":{"x":46,"y":784,"width":401,"height":13}},{"id":"07b90212-8502-496c-a7a5-1052d972aa77","block_type":"box","text":"or A Load-Waived BlackRock Portfolio), unless you qualify for a","page_number":552,"box":{"x":448,"y":784,"width":452,"height":13}},{"id":"07e19bfa-97f5-4882-b666-959ae29a4ac2","block_type":"box","text":"waiver. There is no CDSC charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a","page_number":552,"box":{"x":45,"y":800,"width":891,"height":13}},{"id":"473af875-701b-46a0-a5cd-e9fca3d36302","block_type":"box","text":"shorter holding period, as applicable) as measured from your original purchase of Investor A Shares that you exchanged into","page_number":552,"box":{"x":46,"y":815,"width":864,"height":13}},{"id":"ad2e5fd3-a908-43e5-af17-bede9cf384c0","block_type":"box","text":"Investor A Shares of Summit Cash Reserves or if you purchase Investor A Shares of Summit Cash Reserves not through an","page_number":552,"box":{"x":45,"y":831,"width":849,"height":13}},{"id":"07222321-4c7f-44c3-ad5b-9f96818b887a","block_type":"box","text":"exchange. The deferred sales charge on Investor A Shares is not charged in connection with: (a) redemptions of Investor A Shares","page_number":552,"box":{"x":46,"y":846,"width":894,"height":13}},{"id":"826fd8dc-f94b-46c7-be20-678494b39763","block_type":"box","text":"purchased through certain employer-sponsored retirement pla","page_number":552,"box":{"x":45,"y":862,"width":429,"height":13}},{"id":"eab00df7-193d-45ce-89bd-688ee69c7bdb","block_type":"box","text":"ns and rollovers of current investments in a Fund through such","page_number":552,"box":{"x":475,"y":862,"width":436,"height":13}},{"id":"d3ceb332-a59e-4c2e-8a7e-b01eb79a36bb","block_type":"box","text":"plans; (b) exchanges pursuant to the exchange privilege describe","page_number":552,"box":{"x":45,"y":877,"width":444,"height":13}},{"id":"8d1b2df0-b58f-417c-9542-12938fad9e0e","block_type":"box","text":"d in the Fund’s Prospectus; (c) redemptions made in connection","page_number":552,"box":{"x":490,"y":877,"width":439,"height":13}},{"id":"63f6c250-67f3-4900-9f8d-5c8cd0cf55a2","block_type":"box","text":"II-35","page_number":552,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"bad91f47-f358-495a-b1b6-20a0b899c4d3","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":552,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a06eeb0d-8e6b-4f2f-ac2a-6fac93b948dc","block_type":"box","text":"with minimum required distributions due to the shareholder rea","page_number":553,"box":{"x":45,"y":79,"width":443,"height":13}},{"id":"109f5dad-e457-4105-9809-4a757b2cea0d","block_type":"box","text":"ching age 72 from IRA and 403(b)(7) accounts; (d) redemptions","page_number":553,"box":{"x":489,"y":79,"width":444,"height":13}},{"id":"4b1811e6-1102-4b7c-92d3-92a8a50ca4be","block_type":"box","text":"made with respect to certain retirement plans sponsored by BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":553,"box":{"x":45,"y":94,"width":873,"height":13}},{"id":"7504fde3-fc41-43ff-899a-b9863017170e","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the distribution of","page_number":553,"box":{"x":46,"y":110,"width":852,"height":13}},{"id":"e817ffa6-de26-4767-9e03-553cae485504","block_type":"box","text":"account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as defined in the Code)","page_number":553,"box":{"x":46,"y":125,"width":846,"height":13}},{"id":"736cf573-c0da-4020-955a-163ad14d692a","block_type":"box","text":"subsequent to the purchase of Investor A Shares; (f) involuntary redemptions of Investor A Shares in accounts with low balances;","page_number":553,"box":{"x":46,"y":141,"width":893,"height":13}},{"id":"78702e46-f039-40ad-8ed5-2602357e03ec","block_type":"box","text":"(g) certain redemptions made pursuant to the Systematic Withdr","page_number":553,"box":{"x":46,"y":156,"width":445,"height":13}},{"id":"ee1a4ee4-af15-4064-97f9-d0c30e1677d1","block_type":"box","text":"awal Plan (described below); (h) redemptions related to the","page_number":553,"box":{"x":492,"y":156,"width":409,"height":13}},{"id":"d37c0cb6-b9ea-4efa-ba42-96c375b4b6ad","block_type":"box","text":"payment of BNY Mellon Investment Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can","page_number":553,"box":{"x":45,"y":172,"width":880,"height":13}},{"id":"d511110e-6de3-4091-8792-38f22c137482","block_type":"box","text":"demonstrate hardship, in the absolute discretion of a Fund.","page_number":553,"box":{"x":46,"y":187,"width":408,"height":13}},{"id":"45d8b14a-9108-4aca-bb77-2efb65cf29b5","block_type":"box","text":"If a holder of Investor A Shares of the Fund subsequently exchanges back into the same class of shares of the original affiliated","page_number":553,"box":{"x":45,"y":210,"width":876,"height":12}},{"id":"a8e57168-3285-4957-9bdf-d1ad67a9791f","block_type":"box","text":"fund it will do so without paying any sales charge. If a holder of Investor A Shares of the Fund exchanges into Investor A Shares of","page_number":553,"box":{"x":45,"y":225,"width":908,"height":13}},{"id":"c861b8f6-3d56-4cb8-9420-39fd02377cbc","block_type":"box","text":"another affiliated fund, the holder will be required to pay a sales charge equal to the difference, if any, between the sales charge","page_number":553,"box":{"x":46,"y":241,"width":880,"height":12}},{"id":"92154f6f-c0ed-4591-8437-6e8358b2e452","block_type":"box","text":"previously paid on the shares of the original affiliated fund and the sales charge payable at the time of the exchange on the shares","page_number":553,"box":{"x":45,"y":256,"width":895,"height":13}},{"id":"f4b7de01-2475-4dd8-a7ee-048f863641b3","block_type":"box","text":"of the new affiliated fund.","page_number":553,"box":{"x":46,"y":272,"width":178,"height":10}},{"id":"0b0f1314-f880-43cb-ba6b-02101526f0ea","block_type":"box","text":"It is contemplated that the exchange privilege may be applicable to other new mutual funds whose shares are distributed by the","page_number":553,"box":{"x":45,"y":294,"width":882,"height":13}},{"id":"eae885af-562a-4f1d-b868-5006627a677b","block_type":"box","text":"Distributor.","page_number":553,"box":{"x":45,"y":309,"width":81,"height":10}},{"id":"703abaa2-dd40-4214-868b-b5d1b66073c3","block_type":"box","text":"Under the exchange privilege, exchanges are made on the basis of the relative NAVs of the shares being exchanged. Shares issued","page_number":553,"box":{"x":45,"y":331,"width":895,"height":13}},{"id":"2c396e2f-73c4-44af-a093-101d24e5f04b","block_type":"box","text":"pursuant to dividend reinvestment are sold on a no-load basis in each of the affiliated funds. For purposes of the exchange","page_number":553,"box":{"x":45,"y":347,"width":847,"height":13}},{"id":"51e11d45-3194-480d-884f-ce9b0c4c1616","block_type":"box","text":"privilege, dividend reinvestment shares shall be deemed to have","page_number":553,"box":{"x":45,"y":362,"width":437,"height":13}},{"id":"22e29af5-bac1-452e-b41a-11e49c447ffe","block_type":"box","text":"been sold with a sales charge equal to the sales charge previously","page_number":553,"box":{"x":488,"y":362,"width":448,"height":13}},{"id":"ceb2273f-330e-463d-bb22-3bedb9cec92b","block_type":"box","text":"paid on the shares on which the dividend was paid. Based on this formula an exchange of Investor A Shares of the Fund for","page_number":553,"box":{"x":45,"y":378,"width":857,"height":13}},{"id":"32c90362-3813-4923-b49c-ff909e4f8902","block_type":"box","text":"Investor A Shares of an affiliated fund generally will require the payment of a sales charge equal to the difference, if any, between","page_number":553,"box":{"x":45,"y":394,"width":896,"height":12}},{"id":"3c1e1644-7403-4c60-9ef4-253b3dc6e171","block_type":"box","text":"the sales charge previously paid on the Investor A Shares originally exchanged for Investor A Shares of the Fund and the sales","page_number":553,"box":{"x":45,"y":409,"width":869,"height":13}},{"id":"27c9c878-946a-4316-a3bb-da16c9e2c2d0","block_type":"box","text":"charge that may be payable at the time of the exchange on the Investor A Shares of the affiliated fund to be acquired.","page_number":553,"box":{"x":45,"y":425,"width":811,"height":12}},{"id":"48310799-d386-46ae-ad9f-0432894973ea","block_type":"box","text":"Before effecting an exchange, shareholders of the Fund should obtain a currently effective prospectus of the affiliated fund into","page_number":553,"box":{"x":46,"y":447,"width":877,"height":13}},{"id":"9d4b8bbc-9224-45d8-974c-7aea41e36cfa","block_type":"box","text":"which the exchange is to be made for information regarding the fund and for further details regarding such exchange.","page_number":553,"box":{"x":45,"y":462,"width":815,"height":13}},{"id":"9d814367-17a4-4be4-8a95-70b076628e37","block_type":"box","text":"To effect an exchange, shareholders should contact their financial","page_number":553,"box":{"x":45,"y":484,"width":455,"height":13}},{"id":"e7da9023-52c3-4974-bdb1-68118586fcf2","block_type":"box","text":"adviser, selected securities dealer or other financial intermediary,","page_number":553,"box":{"x":506,"y":484,"width":446,"height":13}},{"id":"9ba36eb6-5c59-447e-a1b2-dbc25fcfc3f5","block_type":"box","text":"who will advise the Fund of the exchange, or write to the Fund’s transfer agent requesting that the exchange be effected.","page_number":553,"box":{"x":45,"y":500,"width":833,"height":13}},{"id":"6fb5d7ec-1162-476f-a3fb-a16eb8cf29bf","block_type":"box","text":"Shareholders of certain affiliated funds with shares for which certificates have not been issued may effect an exchange by wire","page_number":553,"box":{"x":46,"y":515,"width":871,"height":13}},{"id":"76bb08f8-4ebd-4596-8910-a6042e6c8228","block_type":"box","text":"through their securities dealers. The exchange privilege may be m","page_number":553,"box":{"x":45,"y":531,"width":453,"height":13}},{"id":"a19707d9-be39-498b-93a6-1178cd9034bd","block_type":"box","text":"odified or terminated at any time in accordance with the rules of","page_number":553,"box":{"x":499,"y":531,"width":447,"height":13}},{"id":"27357b20-cafb-447e-9c2e-4d4054d90066","block_type":"box","text":"the Commission. There is currently no limitation on the number of","page_number":553,"box":{"x":45,"y":546,"width":465,"height":13}},{"id":"82f67a21-ee54-4d30-a488-ffde969c0415","block_type":"box","text":"times a shareholder may effect an exchange into the Fund","page_number":553,"box":{"x":514,"y":546,"width":399,"height":13}},{"id":"08ff9d54-600e-4124-a51c-0a207d847177","block_type":"box","text":"through the exchange privilege; however, the Fund reserves the r","page_number":553,"box":{"x":45,"y":562,"width":448,"height":13}},{"id":"c2e0ca0e-b789-492e-bba6-1fbeac230574","block_type":"box","text":"ight to limit the number of times an investor may effect an","page_number":553,"box":{"x":493,"y":562,"width":404,"height":13}},{"id":"e9f7d872-26cd-4b36-a23d-15c4eb804052","block_type":"box","text":"exchange. Certain affiliated funds may suspend the continuous offering of their shares at any time and thereafter may resume such","page_number":553,"box":{"x":46,"y":577,"width":903,"height":13}},{"id":"277f8e74-805d-4df5-b7b0-109ad1f2906e","block_type":"box","text":"offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the exchange legally may","page_number":553,"box":{"x":46,"y":593,"width":893,"height":13}},{"id":"f3ca6f61-dab5-4606-99b5-895f1b984256","block_type":"box","text":"be made.","page_number":553,"box":{"x":46,"y":608,"width":61,"height":11}},{"id":"a3ac27aa-8d40-4af0-a783-efaf497a488b","block_type":"box","text":"An exchange pursuant to the exchange privilege is treated as a sale of the exchanged shares and a purchase of the new shares for","page_number":553,"box":{"x":45,"y":631,"width":891,"height":13}},{"id":"85e85b1e-f041-443c-b057-2f6050433a51","block_type":"box","text":"Federal income tax purposes. In addition, an exchanging sha","page_number":553,"box":{"x":45,"y":646,"width":421,"height":13}},{"id":"c56cf679-951f-4694-935f-e2b7c0b42085","block_type":"box","text":"reholder of any of the funds may be subject to backup withholding","page_number":553,"box":{"x":466,"y":646,"width":464,"height":13}},{"id":"f61620a3-97f4-4f8a-90f0-8aec4df9ff84","block_type":"box","text":"unless such shareholder certifies under penalty of perjury that the taxpayer identification number on file with any such fund is","page_number":553,"box":{"x":46,"y":662,"width":872,"height":13}},{"id":"0a60fe94-1678-4110-928a-2ec2996775ee","block_type":"box","text":"correct, and that he or she is not otherwise subject to backup withholding. See “Dividends and Taxes — Taxes.”","page_number":553,"box":{"x":45,"y":677,"width":781,"height":13}},{"id":"6b8a3d64-d7d2-4ce6-95cc-4bb84c833544","block_type":"box","text":"Additional Shareholder Features (Investor A and Investor C Shares Only)","page_number":553,"box":{"x":45,"y":706,"width":533,"height":13}},{"id":"49492f2b-090e-4185-b486-cf957e3496a3","block_type":"box","text":"Automatic Investment Plan (“AIP”).","page_number":553,"box":{"x":45,"y":731,"width":252,"height":12}},{"id":"c3f5fd48-cd04-45d7-b768-dcdaa9f2d0ec","block_type":"box","text":"Certain shareholders may arrange for periodic investments in the Fund through automatic","page_number":553,"box":{"x":303,"y":731,"width":624,"height":13}},{"id":"c08590f8-88de-41f8-bcba-482a8e98fc01","block_type":"box","text":"deductions from a checking or savings account by completing the AIP Application which may be obtained from the Fund at","page_number":553,"box":{"x":46,"y":746,"width":858,"height":13}},{"id":"c80e4f16-7608-40e9-a07a-0ccfaa527357","block_type":"box","text":"(800) 441-7762, or online at www.blackrock.com. The minimum pre-authorized investment amount is $50 per Fund.","page_number":553,"box":{"x":46,"y":761,"width":818,"height":14}},{"id":"a985f4f3-7160-43ed-a4b3-c599b2aab07f","block_type":"box","text":"Systematic Withdrawal Plan (“SWP”).","page_number":553,"box":{"x":46,"y":784,"width":266,"height":13}},{"id":"ee64323e-dcf3-4263-95ae-b953357853a5","block_type":"box","text":"The Fund offers a Systematic Withdrawal Plan to shareholders who wish to receive regular","page_number":553,"box":{"x":317,"y":784,"width":631,"height":13}},{"id":"317eaf57-f562-4eab-98c0-f5eaf7c7f17d","block_type":"box","text":"distributions from their accounts. Upon commencement of the","page_number":553,"box":{"x":46,"y":799,"width":432,"height":13}},{"id":"8b5341f0-e518-49a7-bc16-cfdc2e96e43c","block_type":"box","text":"SWP, the account must have a current value of $10,000 or more in","page_number":553,"box":{"x":483,"y":799,"width":465,"height":13}},{"id":"cf4d2fb6-c7ff-4299-ba54-2131836d6cb5","block_type":"box","text":"the Fund. Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day for","page_number":553,"box":{"x":45,"y":815,"width":903,"height":13}},{"id":"65518b28-5d1f-4aed-8c57-bd8415213b45","block_type":"box","text":"the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such day is not a","page_number":553,"box":{"x":45,"y":830,"width":867,"height":13}},{"id":"6485f6bb-0265-48b3-be27-7bbee5924b00","block_type":"box","text":"Business Day, on the prior Business Day and are paid promptly thereafter. An investor may utilize the SWP by completing the","page_number":553,"box":{"x":46,"y":846,"width":871,"height":13}},{"id":"5fcf1304-e5e4-4809-9396-7a307b4f784d","block_type":"box","text":"Systematic Withdrawal Plan Application Form which may be obtained by calling the Fund or by visiting our website at","page_number":553,"box":{"x":46,"y":861,"width":826,"height":13}},{"id":"6202a554-3dea-4629-ac6d-b704064f7535","block_type":"box","text":"www.blackrock.com.","page_number":553,"box":{"x":45,"y":877,"width":149,"height":10}},{"id":"e64205c0-e70b-446d-ba55-5d8c1246f49f","block_type":"box","text":"II-36","page_number":553,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"7112411f-7b2c-4152-a4f5-273ce3171ef9","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":553,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f8b25d56-e1df-4671-afb7-49f262729f26","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income di","page_number":554,"box":{"x":46,"y":79,"width":448,"height":10}},{"id":"8c9a52f0-3e21-436c-8cca-847176bd88b0","block_type":"box","text":"vidends their invested principal in the account will be depleted.","page_number":554,"box":{"x":495,"y":79,"width":435,"height":13}},{"id":"698499f8-8414-44d4-8b66-d503e7581a91","block_type":"box","text":"To participate in the SWP, shareholders must have their dividends automatically reinvested. Shareholders may change or cancel","page_number":554,"box":{"x":45,"y":94,"width":884,"height":13}},{"id":"f5032acb-5107-428a-98b2-35f7895f11d9","block_type":"box","text":"the SWP at any time, upon written notice to the Fund, or by calling the Fund at (800) 441-7762.","page_number":554,"box":{"x":45,"y":110,"width":670,"height":13}},{"id":"0fd42872-7165-4346-a2c8-66615d36d4c1","block_type":"box","text":"For this reason, a shareholder may not participate in the Autom","page_number":554,"box":{"x":45,"y":133,"width":443,"height":12}},{"id":"e0768f05-7a4d-4c85-b425-60763b2d6d61","block_type":"box","text":"atic Investment Plan (see “Account Services and Privileges —","page_number":554,"box":{"x":489,"y":133,"width":421,"height":12}},{"id":"c19ed9cd-bf2e-4ae2-859d-187152f5a4d7","block_type":"box","text":"Automatic Investment Plan” in the Fund’s Prospectus) and the Systematic Withdrawal Plan at the same time.","page_number":554,"box":{"x":45,"y":148,"width":755,"height":13}},{"id":"02bef362-64e3-42ad-8705-f187e8d50530","block_type":"box","text":"Dividend Allocation Plan.","page_number":554,"box":{"x":45,"y":171,"width":179,"height":10}},{"id":"a1068970-dd68-4993-a165-48bbdd98abcd","block_type":"box","text":"The Dividend Allocation Plan allows shareholders to elect to have all their dividends and any other","page_number":554,"box":{"x":229,"y":171,"width":687,"height":13}},{"id":"ae241244-723c-409c-8678-98ab0176eafe","block_type":"box","text":"distributions from the Fund or any Eligible Fund (which includes the Fund and other funds as designated by BRIL from time to","page_number":554,"box":{"x":46,"y":186,"width":881,"height":13}},{"id":"1c5f2dcf-fe11-4396-83a3-499e67382c99","block_type":"box","text":"time) automatically invested at NAV in one other such Eligible","page_number":554,"box":{"x":45,"y":202,"width":435,"height":13}},{"id":"5c23842e-2459-4572-876a-17ed99655d23","block_type":"box","text":"Fund designated by the shareholder, provided the account into","page_number":554,"box":{"x":485,"y":202,"width":434,"height":13}},{"id":"da9c4ecf-1fdd-4f5a-8307-767099d04877","block_type":"box","text":"which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":554,"box":{"x":45,"y":217,"width":730,"height":13}},{"id":"c5b884c4-e3b0-4ed5-8d7d-0b7afa106f9a","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":554,"box":{"x":46,"y":248,"width":387,"height":12}},{"id":"900ffdb7-462f-4980-a500-d4b5757a5d6f","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares of the Fund will","page_number":554,"box":{"x":45,"y":273,"width":898,"height":13}},{"id":"66b80473-e7b7-404d-979a-b1b90e425dad","block_type":"box","text":"convert automatically into Investor A Shares of the Fund (the “In","page_number":554,"box":{"x":45,"y":288,"width":453,"height":13}},{"id":"93c9b7aa-f767-4543-9da2-2d9cf582e144","block_type":"box","text":"vestor C 8-Year Conversion”). It is the financial intermediary’s","page_number":554,"box":{"x":498,"y":288,"width":436,"height":13}},{"id":"fc6b6e2b-171a-49e3-b70b-fd87bf8890b5","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date, certain financial","page_number":554,"box":{"x":45,"y":304,"width":891,"height":13}},{"id":"f9c35cca-b987-48fa-9912-5f6d3645b6aa","block_type":"box","text":"intermediaries, including group retirement recordkeeping pla","page_number":554,"box":{"x":45,"y":319,"width":422,"height":13}},{"id":"e82bf7f8-9caf-48ba-b4b1-dbb38602c5a5","block_type":"box","text":"tforms, may not have been tracking such holding periods and","page_number":554,"box":{"x":467,"y":319,"width":426,"height":13}},{"id":"7628214c-d4dc-4c95-abfd-acd825ed21a7","block_type":"box","text":"therefore may not be able to process such conversions. In such instances, Investor C Shares held as of the Effective Date will","page_number":554,"box":{"x":45,"y":335,"width":859,"height":13}},{"id":"5cdcef90-c689-4c75-a17c-882c2e8075ad","block_type":"box","text":"automatically convert to Investor A Shares approximately eight years after the Effective Date. If, as of November 23, 2028 (eight","page_number":554,"box":{"x":46,"y":350,"width":893,"height":13}},{"id":"4aa2734f-b7e7-4c64-b950-9ea79e767bc5","block_type":"box","text":"years after the Effective Date), a financial intermediary has","page_number":554,"box":{"x":45,"y":366,"width":406,"height":13}},{"id":"baedf7e4-69f2-4c6e-9593-3ff327d3dde2","block_type":"box","text":"not implemented systems or procedures to track holding periods","page_number":554,"box":{"x":457,"y":366,"width":445,"height":13}},{"id":"7c085dee-2fa3-461b-b7b7-6a3857d794e3","block_type":"box","text":"commencing from the Effective Date, shareholders holding Investor C Shares through such financial intermediary will no longer be","page_number":554,"box":{"x":45,"y":381,"width":908,"height":13}},{"id":"f262293e-46d1-4b0e-b7f1-9759f63b2232","block_type":"box","text":"eligible to hold Investor C Shares and any such shares will convert to Investor A Shares as soon as reasonably practicable after","page_number":554,"box":{"x":46,"y":397,"width":874,"height":13}},{"id":"dbfabeb9-a989-47c0-be37-4f62907e6f21","block_type":"box","text":"such date.","page_number":554,"box":{"x":46,"y":412,"width":68,"height":10}},{"id":"99f08446-c07a-4658-b94d-fb58b9c37a23","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold Investor C Shares, and","page_number":554,"box":{"x":45,"y":435,"width":907,"height":13}},{"id":"7d8e1c32-d873-4fb7-a1eb-89238789c712","block_type":"box","text":"any Investor C Shares held in such accounts will be automatically converted into Investor A Shares (the “Investor C Direct","page_number":554,"box":{"x":46,"y":451,"width":848,"height":12}},{"id":"08a21e13-d7df-4297-bf47-9f33888e4572","block_type":"box","text":"Accounts Conversion” and together with the Investor C 8-Year Conversion, the “Investor C Conversions”).","page_number":554,"box":{"x":45,"y":466,"width":749,"height":13}},{"id":"5392545f-78eb-48a2-a35d-d912ffdf3953","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the basis of the relative","page_number":554,"box":{"x":45,"y":489,"width":905,"height":12}},{"id":"f3557348-14d1-431b-acf1-eb60dbbaf83c","block_type":"box","text":"NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the imposition of any sales load, fee","page_number":554,"box":{"x":45,"y":504,"width":893,"height":13}},{"id":"2fdc60ac-c942-4ed2-801e-7d5eeb8b2f3d","block_type":"box","text":"or other charge. The Investor C Conversions will not be deemed a purchase or sale of the shares for Federal income tax purposes.","page_number":554,"box":{"x":46,"y":520,"width":896,"height":13}},{"id":"2c752040-8f83-45b0-bf93-a3608448001d","block_type":"box","text":"Shares acquired through reinvestment of dividends on Investor C Shares will also convert automatically to Investor A Shares, as set","page_number":554,"box":{"x":46,"y":535,"width":908,"height":13}},{"id":"b57bc3e3-266f-43da-9a54-9cb8a7028b51","block_type":"box","text":"forth in the Fund’s Prospectus. The Investor C Conversion Date for dividend reinvestment shares will be calculated taking into","page_number":554,"box":{"x":45,"y":551,"width":877,"height":13}},{"id":"348b19b9-7d06-4d3a-84ab-4e1fee9440d2","block_type":"box","text":"account the length of time the shares underlying the dividend reinvestment shares were outstanding.","page_number":554,"box":{"x":46,"y":566,"width":691,"height":13}},{"id":"27ab5038-275c-41cf-8675-0cf5ed3b928b","block_type":"box","text":"Institutional Shares","page_number":554,"box":{"x":45,"y":596,"width":141,"height":11}},{"id":"7857cd67-e633-48b5-98d9-7fa887736c27","block_type":"box","text":"Purchase of Shares","page_number":554,"box":{"x":45,"y":622,"width":129,"height":10}},{"id":"a48ac69a-27c6-40c1-b938-b560a463bce9","block_type":"box","text":". Summit Cash Reserves offers Institutional Shares as described in the Fund’s Prospectus.","page_number":554,"box":{"x":176,"y":622,"width":612,"height":12}},{"id":"863c2827-9004-4454-bfa5-3c9a625ef68f","block_type":"box","text":"In addition, the following investors may purchase Institutional S","page_number":554,"box":{"x":45,"y":644,"width":445,"height":13}},{"id":"0858f108-7b85-4416-8b0c-e9d64dd989bf","block_type":"box","text":"hares: employees, officers and directors/trustees of BlackRock,","page_number":554,"box":{"x":491,"y":644,"width":431,"height":13}},{"id":"a1849196-3b54-4673-9d7c-7b32431a9d37","block_type":"box","text":"Inc., BlackRock Funds, Bank of America Corporation (“BofA Cor","page_number":554,"box":{"x":45,"y":660,"width":460,"height":13}},{"id":"a9e91baa-51dd-4fc1-818a-9945252614fe","block_type":"box","text":"p.”), Barclays PLC or their respective affiliates and immediate","page_number":554,"box":{"x":506,"y":660,"width":428,"height":13}},{"id":"b89ea41e-5a03-4393-a7dd-d34807805f0d","block_type":"box","text":"family members of such persons, if they open an account directly with BlackRock; individuals and “Institutional Investors” with a","page_number":554,"box":{"x":45,"y":675,"width":903,"height":13}},{"id":"1083e40e-a4f5-42e0-97e9-02a9343ef10e","block_type":"box","text":"minimum initial investment of $2 million who may purchase shares","page_number":554,"box":{"x":45,"y":691,"width":469,"height":13}},{"id":"3de5b10e-a41c-4c54-8889-fa0267a1d38a","block_type":"box","text":"of the Fund through a financial intermediary that has entered","page_number":554,"box":{"x":519,"y":691,"width":425,"height":13}},{"id":"92549077-9f8b-4f21-8653-a37ebfe6c6bd","block_type":"box","text":"into an agreement with the Distributor to purchase such shares","page_number":554,"box":{"x":45,"y":706,"width":437,"height":13}},{"id":"caf12aaf-7177-407d-9baf-4372fddaaed7","block_type":"box","text":"(“Institutional Investors” include, but are not limited to,","page_number":554,"box":{"x":488,"y":706,"width":388,"height":13}},{"id":"d83d1bf3-d53e-437c-96c9-6fd0cd06856b","block_type":"box","text":"endowments, foundations, family offices, local, city, and state gov","page_number":554,"box":{"x":46,"y":722,"width":457,"height":13}},{"id":"a50dc488-55ff-4ba7-a59b-bc5790803ac8","block_type":"box","text":"ernmental institutions, corporations, and insurance company","page_number":554,"box":{"x":504,"y":722,"width":422,"height":13}},{"id":"b65f779e-3dbf-4dce-8e20-93d41b5b31dd","block_type":"box","text":"separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs, SIMPLE IRAs or","page_number":554,"box":{"x":46,"y":737,"width":870,"height":13}},{"id":"8ae4560e-12cb-4b85-8198-34ee5f4fb859","block_type":"box","text":"SARSEPs), state sponsored 529 college savings plans, collectiv","page_number":554,"box":{"x":46,"y":753,"width":430,"height":13}},{"id":"43ed34fe-e5f1-443e-84d3-57057ee155f2","block_type":"box","text":"e trust funds, investment companies or other pooled investment","page_number":554,"box":{"x":476,"y":753,"width":440,"height":13}},{"id":"af2687f1-468b-4d8a-b6e2-d2b3182f68ce","block_type":"box","text":"vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which may purchase shares of the Fund through a","page_number":554,"box":{"x":45,"y":769,"width":903,"height":12}},{"id":"7fd91f00-14a3-4f81-9ebc-708aeb7bba8f","block_type":"box","text":"financial intermediary that has entered into an agreement with the","page_number":554,"box":{"x":45,"y":784,"width":459,"height":13}},{"id":"f4ed1b05-2fc2-42d8-9045-4abcb9f20c96","block_type":"box","text":"Distributor to purchase such shares; clients investing through a","page_number":554,"box":{"x":509,"y":784,"width":436,"height":13}},{"id":"3fd61a22-44b8-4fbf-95b3-cd8960798ce1","block_type":"box","text":"self-directed IRA brokerage account program sponsored by a retirement plan record-keeper, provided that such program offers","page_number":554,"box":{"x":46,"y":800,"width":880,"height":12}},{"id":"31181a3f-bbc8-488e-8a67-0f423da53a30","block_type":"box","text":"only mutual fund options and that the program maintains an a","page_number":554,"box":{"x":46,"y":815,"width":435,"height":13}},{"id":"fe3372ce-9046-4a54-b07b-7ba552b25a62","block_type":"box","text":"ccount with the Fund on an omnibus basis; clients of financial","page_number":554,"box":{"x":482,"y":815,"width":430,"height":12}},{"id":"1d0ea901-cb8b-48e2-9734-b2ee3a9432fa","block_type":"box","text":"intermediaries that: (i) charge such clients a fee for advisory, i","page_number":554,"box":{"x":45,"y":831,"width":426,"height":12}},{"id":"f0886ba6-5efc-434f-89bb-52bc2fe49e6d","block_type":"box","text":"nvestment consulting, or similar services or (ii) have entered into an","page_number":554,"box":{"x":471,"y":831,"width":468,"height":12}},{"id":"9b7ef761-2c62-4fa2-9959-ca7c9ca87cf9","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares thr","page_number":554,"box":{"x":46,"y":846,"width":434,"height":13}},{"id":"f1aac296-4ad6-40ed-8978-3ba1c27c8eba","block_type":"box","text":"ough a no-load program or investment platform, in each case, with","page_number":554,"box":{"x":481,"y":846,"width":465,"height":13}},{"id":"244ca9f1-fbd6-4701-9ea8-b0a1a0e8fc59","block_type":"box","text":"no minimum initial investment; clients investing through financi","page_number":554,"box":{"x":45,"y":862,"width":444,"height":12}},{"id":"6c10a681-fc2f-4674-aff4-c2558725973e","block_type":"box","text":"al intermediaries that have entered into an agreement with the","page_number":554,"box":{"x":490,"y":862,"width":429,"height":12}},{"id":"2d127fd4-71da-4f5b-b85c-362d81a93427","block_type":"box","text":"Distributor to offer such shares on a platform that charges a transaction based sales commission outside of the Fund, with a","page_number":554,"box":{"x":45,"y":877,"width":859,"height":13}},{"id":"86e9c829-f57f-4976-8c1b-c2dd97c4ce62","block_type":"box","text":"II-37","page_number":554,"box":{"x":482,"y":917,"width":35,"height":9}},{"id":"a2cfe41f-abf3-4199-8595-b3f1b43bc221","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":554,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"c4911e62-78c2-4f36-a089-394422b0783d","block_type":"box","text":"minimum initial investment of $1,000; tax-qualified accounts for insurance agents that are registered representatives of an","page_number":555,"box":{"x":45,"y":78,"width":846,"height":14}},{"id":"d41a3b6b-0d17-4a3b-b1c1-4e625231cde1","block_type":"box","text":"insurance company’s broker-dealer that has entered into an ag","page_number":555,"box":{"x":45,"y":94,"width":433,"height":13}},{"id":"3b86b54a-42d2-4632-a884-a9f5c26b684e","block_type":"box","text":"reement with the Distributor to offer Institutional Shares, and the","page_number":555,"box":{"x":478,"y":94,"width":454,"height":13}},{"id":"0ca0944a-6380-4f1f-9736-b99d38e55d13","block_type":"box","text":"family members of such persons, with a minimum initial investment","page_number":555,"box":{"x":45,"y":110,"width":472,"height":13}},{"id":"e4d6450c-d3a9-4080-b8aa-b6dafa884499","block_type":"box","text":"of $1,000; trust department clients of Bank of America, N.A.","page_number":555,"box":{"x":522,"y":109,"width":423,"height":14}},{"id":"78cbbf1c-11ad-44f9-9e9d-823bf6c3ee29","block_type":"box","text":"and its affiliates for whom they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise","page_number":555,"box":{"x":46,"y":125,"width":903,"height":13}},{"id":"8fef5c6e-41b6-4331-97aa-e75ca55b320a","block_type":"box","text":"have investment discretion, or (iii) act as custodian for at least","page_number":555,"box":{"x":45,"y":141,"width":430,"height":12}},{"id":"854e9edb-9084-49b5-9ea5-d05527c14735","block_type":"box","text":"$2 million in assets; and holders of certain BofA Corp. sponsored","page_number":555,"box":{"x":480,"y":140,"width":453,"height":14}},{"id":"bd5db5a5-c120-455f-90f4-6483242db282","block_type":"box","text":"unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of the Fund.","page_number":555,"box":{"x":46,"y":156,"width":689,"height":13}},{"id":"4c67ec2f-63d2-4a00-b75a-b9b359c59345","block_type":"box","text":"The Fund may in its discretion waive or modify any minimum investment amount, may reject any order for any class of shares","page_number":555,"box":{"x":45,"y":179,"width":878,"height":12}},{"id":"5b5e4d40-f800-407a-9b2b-644cf24f92e7","block_type":"box","text":"and may suspend and resume the sale of shares of the Fund at any time.","page_number":555,"box":{"x":46,"y":194,"width":496,"height":13}},{"id":"ae81a81c-50ff-4639-9859-8d3a3f5017d4","block_type":"box","text":"Institutional Shares of the Fund may be purchased by customers of broker-dealers and agents that have established a servicing","page_number":555,"box":{"x":45,"y":216,"width":873,"height":13}},{"id":"08eb52fd-eb2f-4881-9491-217fce17f663","block_type":"box","text":"relationship with the Fund on behalf of their customers. These broker-dealers and agents may impose additional or different","page_number":555,"box":{"x":45,"y":232,"width":861,"height":13}},{"id":"c93c7976-a55e-4667-aca9-a0e376a15104","block_type":"box","text":"conditions on the purchase or redemption of Fund shares by their c","page_number":555,"box":{"x":45,"y":247,"width":466,"height":13}},{"id":"3a608429-d74d-4286-840a-73f5f5dadc51","block_type":"box","text":"ustomers and may charge their customers transaction, account","page_number":555,"box":{"x":512,"y":247,"width":433,"height":13}},{"id":"df2e62e6-492e-49a7-9110-f06f57526894","block_type":"box","text":"or other fees on the purchase and redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its","page_number":555,"box":{"x":46,"y":263,"width":874,"height":13}},{"id":"4d6b1172-a676-46f8-afa3-c6ce605df8df","block_type":"box","text":"customers a schedule of any such fees and information regarding any additional or different conditions regarding purchases and","page_number":555,"box":{"x":45,"y":278,"width":887,"height":13}},{"id":"da10b696-a1ee-4370-9e14-6bc2e50dd01c","block_type":"box","text":"redemptions. Shareholders who are customers of such broker-de","page_number":555,"box":{"x":45,"y":294,"width":447,"height":13}},{"id":"c71da284-87d3-4024-9fb7-d06df6477fd6","block_type":"box","text":"alers or agents should consult them for information regarding","page_number":555,"box":{"x":492,"y":294,"width":428,"height":13}},{"id":"7af78ffa-122f-471b-8e51-80fa9180bf5c","block_type":"box","text":"these fees and conditions.","page_number":555,"box":{"x":45,"y":309,"width":176,"height":10}},{"id":"53ae730f-1509-4b7b-87e1-1599ea691348","block_type":"box","text":"Except as otherwise specified in the Fund’s Prospectus, payment for Institutional Shares must normally be made in Federal funds","page_number":555,"box":{"x":45,"y":331,"width":892,"height":13}},{"id":"1f473d1f-bce4-4bf2-98f2-680bbf213f94","block_type":"box","text":"or other immediately available funds by the time specified by the sha","page_number":555,"box":{"x":46,"y":347,"width":475,"height":13}},{"id":"3d2c1f4d-4b21-4266-a67f-a042c968191f","block_type":"box","text":"reholder’s financial intermediary, but in no event later than","page_number":555,"box":{"x":521,"y":347,"width":410,"height":13}},{"id":"42dc9e10-2273-40b3-b9f4-efcef01c09c7","block_type":"box","text":"the close of the federal funds wire (normally 6:45 p.m. (Eastern time)). Payment may also, in the discretion of the Fund, be made","page_number":555,"box":{"x":45,"y":362,"width":892,"height":13}},{"id":"8f2d4b10-f73a-4b88-9e03-611f20f057c1","block_type":"box","text":"in the form of securities that are permissible investments for the Fund. 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Institutions qualifying to trade on DCC&S include broker/","page_number":555,"box":{"x":494,"y":500,"width":445,"height":13}},{"id":"53a79b41-4c03-4ca5-93b4-a50d99144e22","block_type":"box","text":"dealers, trust companies and third party administrators. Please","page_number":555,"box":{"x":46,"y":515,"width":432,"height":13}},{"id":"19c4b18b-95b4-4eef-ad1f-f407396dd921","block_type":"box","text":"contact the Fund for information on agreements, procedures, sales","page_number":555,"box":{"x":483,"y":515,"width":460,"height":13}},{"id":"d7c10f7a-c02f-4988-84a9-c7db27df8b89","block_type":"box","text":"charges and fees related to DCC&S transactions.","page_number":555,"box":{"x":45,"y":531,"width":339,"height":13}},{"id":"9b72458d-71f8-4a1d-80b3-e5c284241ed1","block_type":"box","text":"Purchase of Shares of WeLEAF","page_number":555,"box":{"x":45,"y":560,"width":226,"height":10}},{"id":"88002094-3581-4610-9ca9-fc6d4f7f8719","block_type":"box","text":"WeLEAF has authorized one or more brokers and/or financial ins","page_number":555,"box":{"x":45,"y":584,"width":455,"height":10}},{"id":"18e2ca93-9a1a-4a4f-83ff-28674bd7b7ec","block_type":"box","text":"titutions (“Authorized Persons”) to receive on its behalf purchase","page_number":555,"box":{"x":501,"y":584,"width":452,"height":13}},{"id":"a6b2be79-e052-4bf3-b1f8-49228262d2f8","block_type":"box","text":"and redemption orders that are in “good form” in accordance","page_number":555,"box":{"x":46,"y":600,"width":429,"height":13}},{"id":"53f03385-236b-468e-86d6-5af74a85f31d","block_type":"box","text":"with the policies of those Authorized Persons. 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Financial institutions","page_number":555,"box":{"x":508,"y":662,"width":434,"height":13}},{"id":"a28c1c1f-7c90-4928-abee-a9f9675f1ad8","block_type":"box","text":"may include retirement plan service providers who aggregat","page_number":555,"box":{"x":45,"y":677,"width":414,"height":13}},{"id":"0bd34df5-d444-4e6d-a87e-89d8b8bb7d87","block_type":"box","text":"e purchase and redemption instructions received from numerous","page_number":555,"box":{"x":460,"y":677,"width":445,"height":13}},{"id":"44c7f6dd-a7f1-4a06-8e23-b93681848923","block_type":"box","text":"retirement plans or plan participants.","page_number":555,"box":{"x":45,"y":693,"width":257,"height":13}},{"id":"3d9ea5bb-eea7-4521-8eea-d02d548e6575","block_type":"box","text":"Investor Shares","page_number":555,"box":{"x":45,"y":722,"width":111,"height":10}},{"id":"3656879e-f5c0-4e3e-a318-515d088979db","block_type":"box","text":"Purchase of Shares.","page_number":555,"box":{"x":45,"y":746,"width":133,"height":10}},{"id":"71461c64-a879-43a7-a125-37942ea1000a","block_type":"box","text":"The minimum investment for the initial purchase of shares is $1,000. There is no investment minimum for","page_number":555,"box":{"x":184,"y":746,"width":737,"height":13}},{"id":"8b363eb8-4c9e-4568-a954-3c426f4a1dc6","block_type":"box","text":"employer-sponsored retirement plans (not including SEP IRAs,","page_number":555,"box":{"x":46,"y":762,"width":433,"height":13}},{"id":"4916ab77-1f5d-4ec1-b7a1-db02daf33068","block_type":"box","text":"SIMPLE IRAs or SARSEPs). There is no investment minimum for","page_number":555,"box":{"x":485,"y":762,"width":454,"height":12}},{"id":"9b2ddcce-d64d-400a-99f6-113c4e9b953f","block_type":"box","text":"certain fee-based programs. There is a $50 minimum for subsequent investments (with the exception of certain employer","page_number":555,"box":{"x":45,"y":777,"width":842,"height":13}},{"id":"76a8f45b-d709-4715-b6bd-22f4e6ba94f4","block_type":"box","text":"sponsored retirement plans which may have a lower minimum). Pu","page_number":555,"box":{"x":46,"y":793,"width":465,"height":13}},{"id":"4b5d6e1c-26ec-47f2-b7a9-ce6edc6e0c42","block_type":"box","text":"rchases through the Automatic Investment Plan are subject to a","page_number":555,"box":{"x":511,"y":793,"width":439,"height":13}},{"id":"9bb45d0b-1019-4f7d-850a-5885c93533cc","block_type":"box","text":"lower initial purchase minimum. 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Purchases may be effected on weekdays on which both the","page_number":556,"box":{"x":45,"y":135,"width":887,"height":13}},{"id":"872b54bb-03bd-4e73-948a-efd3515d6934","block_type":"box","text":"NYSE and the Federal Reserve Bank of Philadelphia are open for business (a “Business Day”). Payment for orders which are not","page_number":556,"box":{"x":45,"y":150,"width":893,"height":13}},{"id":"d86b0ef4-05fe-4d98-9292-5385a1e879e2","block_type":"box","text":"received or accepted will be returned after prompt inquiry. The issuance of shares is recorded on the books of the Fund. No","page_number":556,"box":{"x":45,"y":166,"width":856,"height":13}},{"id":"b311566d-54e1-4a20-bb62-a2244351dea5","block_type":"box","text":"certificates will be issued for shares. Payments for shares of the F","page_number":556,"box":{"x":45,"y":181,"width":449,"height":13}},{"id":"23fe908d-a434-4c32-9357-e221f315b705","block_type":"box","text":"und may, in the discretion of the Fund’s Manager, be made in the","page_number":556,"box":{"x":494,"y":181,"width":455,"height":13}},{"id":"e76b9d6f-409a-4ba7-8cf1-8d1372b75b70","block_type":"box","text":"form of securities that are permissible investments for the Fund. 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However, a CDSC will be charged in","page_number":556,"box":{"x":45,"y":337,"width":904,"height":13}},{"id":"81b21a3d-cf2c-4010-8b1d-b5fb82ad44d7","block_type":"box","text":"connection with the redemption of the Investor C Shares of the Non-Money Market Portfolio received in the exchange.","page_number":556,"box":{"x":45,"y":352,"width":828,"height":13}},{"id":"e97d358f-8d98-45ef-a777-bccde7f07857","block_type":"box","text":"A CDSC of up to 1.00% may apply to certain redemptions of Investor A Shares of WeLEAF purchased in an exchange transaction","page_number":556,"box":{"x":45,"y":377,"width":908,"height":13}},{"id":"387f22c2-cd5e-4cf2-8f69-30939273c951","block_type":"box","text":"for Investor A Shares of a portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of","page_number":556,"box":{"x":45,"y":393,"width":868,"height":13}},{"id":"12d7ac82-9fc5-4016-b1f1-f8d80f529234","block_type":"box","text":"purchase of such Fund (an “Investor A Load-Waived BlackRo","page_number":556,"box":{"x":45,"y":408,"width":431,"height":13}},{"id":"d6bc30e3-a1d9-4ba1-92a3-2ce9e78396ba","block_type":"box","text":"ck Fund”) as part of an investment of $1,000,000 (lesser amounts","page_number":556,"box":{"x":477,"y":408,"width":457,"height":13}},{"id":"9daf42e3-462a-445e-a2e5-ee93a7e261d5","block_type":"box","text":"may apply depending on the Investor A Load-Waived BlackRock Fund) or more. The Investor A Shares CDSC is only charged","page_number":556,"box":{"x":45,"y":424,"width":878,"height":13}},{"id":"15091fc6-2c06-4f66-ad21-2f9dcc3d3756","block_type":"box","text":"upon redemptions of Investor A Shares within 18 months after you originally acquired such Investor A Shares of the Investor A","page_number":556,"box":{"x":46,"y":440,"width":883,"height":12}},{"id":"96d6d97d-5e68-4491-9b11-422883242bc8","block_type":"box","text":"Load-Waived BlackRock Fund (a shorter holding period may appl","page_number":556,"box":{"x":46,"y":455,"width":460,"height":13}},{"id":"1c019f8a-8785-4ee7-a3c1-0feb0934f11d","block_type":"box","text":"y depending on the Investor A Load-Waived BlackRock Fund),","page_number":556,"box":{"x":507,"y":455,"width":437,"height":13}},{"id":"bb769293-fbc7-4e7e-b2b4-907f2fb45043","block_type":"box","text":"unless you qualify for a waiver. 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The deferred sales charge on Investor A Shares is not charged in connection","page_number":556,"box":{"x":45,"y":502,"width":882,"height":12}},{"id":"ba76ab77-473c-4632-8826-69449e34005a","block_type":"box","text":"with: (a) redemptions of Investor A Shares purchased through cert","page_number":556,"box":{"x":45,"y":517,"width":459,"height":13}},{"id":"0b0b85f8-0798-4f8f-b5e6-275ed3875363","block_type":"box","text":"ain employer-sponsored retirement plans and rollovers of","page_number":556,"box":{"x":505,"y":517,"width":398,"height":13}},{"id":"023d142d-5a0b-4cd9-87d1-28d9ce16a217","block_type":"box","text":"current investments in a Fund through such plans; (b) exchanges pursuant to the exchange privilege described in the Fund’s","page_number":556,"box":{"x":45,"y":533,"width":854,"height":12}},{"id":"5c35486c-324a-4c77-a2e0-24017137bbeb","block_type":"box","text":"Prospectus; (c) redemptions made in connection with minimum re","page_number":556,"box":{"x":45,"y":548,"width":457,"height":13}},{"id":"aa7cad9c-5d1c-4e84-99ce-165698a8fa73","block_type":"box","text":"quired distributions due to the shareholder reaching age 72 from","page_number":556,"box":{"x":503,"y":548,"width":448,"height":13}},{"id":"043b4f52-f76c-469e-b9a5-753392fde96a","block_type":"box","text":"IRA and 403(b)(7) accounts; (d) redemptions made with respect to certain retirement plans sponsored by BlackRock or its","page_number":556,"box":{"x":45,"y":564,"width":848,"height":12}},{"id":"d40940f0-cb1a-4e1e-9dba-fc2cb4e43a6e","block_type":"box","text":"affiliates; (e) redemptions (i) within one year of a shareholder’s death or, if later, the receipt of a certified probate settlement","page_number":556,"box":{"x":46,"y":579,"width":856,"height":13}},{"id":"9705ddfc-fb34-4407-835d-23e3015d9aca","block_type":"box","text":"(including in connection with the distribution of account asset","page_number":556,"box":{"x":46,"y":595,"width":429,"height":12}},{"id":"bc63810d-04bc-4584-b063-5ad8079e16cc","block_type":"box","text":"s to a beneficiary of the decedent) or (ii) in connection with a","page_number":556,"box":{"x":476,"y":595,"width":422,"height":12}},{"id":"c334b187-f1ca-4e87-88c4-e345e9c5cf50","block_type":"box","text":"shareholder’s disability (as defined in the Code) subsequent to th","page_number":556,"box":{"x":46,"y":610,"width":447,"height":13}},{"id":"f512a686-875e-4715-bb87-d26cf950f324","block_type":"box","text":"e purchase of Investor A Shares; (f) involuntary redemptions of","page_number":556,"box":{"x":494,"y":610,"width":437,"height":13}},{"id":"e31e2ee8-5240-4cc1-91cd-81d7e9f3af98","block_type":"box","text":"Investor A Shares in accounts with low balances; (g) certain redemptions made pursuant to the Systematic Withdrawal Plan","page_number":556,"box":{"x":45,"y":626,"width":858,"height":12}},{"id":"06dbcc20-ab48-4680-a2ed-72d53d62741e","block_type":"box","text":"(described below); (h) redemptions related to the payment of B","page_number":556,"box":{"x":46,"y":641,"width":434,"height":13}},{"id":"a09a3363-b1ae-42f4-9074-baa400e7d048","block_type":"box","text":"NY Mellon Investment Servicing Trust Company custodial IRA","page_number":556,"box":{"x":481,"y":641,"width":442,"height":13}},{"id":"a513cbc8-25ee-4bf2-9f71-02825e0bb767","block_type":"box","text":"fees; and (i) redemptions when a shareholder can demonstrate hardship, in the absolute discretion of a Fund.","page_number":556,"box":{"x":45,"y":657,"width":753,"height":12}},{"id":"53416ea8-bdaa-4e51-b59d-783d560106f2","block_type":"box","text":"A CDSC of 1.00% may apply to certain redemptions of Investor C Shares of WeLEAF. The Investor C Shares CDSC is only","page_number":556,"box":{"x":45,"y":682,"width":862,"height":12}},{"id":"76f69ce0-b139-4496-b8ad-ed9c7a160ba5","block_type":"box","text":"charged upon redemptions of Investor C Shares within one year after you originally acquired the Investor C Shares of the","page_number":556,"box":{"x":45,"y":697,"width":841,"height":13}},{"id":"a589db2f-109f-49e0-9e66-1475ce235c91","block_type":"box","text":"Non-Money Market Portfolio, unless you qualify for a waiver. There is no CDSC charged on redemptions if you have owned your","page_number":556,"box":{"x":45,"y":713,"width":908,"height":12}},{"id":"5fea0ecd-7107-40c1-b1ec-b56259217966","block_type":"box","text":"Investor C Shares for more than one year (as measured from your original purchase of Investor C Shares that you exchanged into","page_number":556,"box":{"x":45,"y":728,"width":897,"height":13}},{"id":"3dbb831d-4b9b-47a6-b162-6c4696b360bc","block_type":"box","text":"Investor C Shares of WeLEAF). In determining whether an Investor","page_number":556,"box":{"x":45,"y":744,"width":468,"height":12}},{"id":"c8f0cb7a-358b-4abb-a81b-1203999681fa","block_type":"box","text":"C Shares CDSC is applicable to a redemption, the calculation","page_number":556,"box":{"x":518,"y":744,"width":425,"height":12}},{"id":"93c18e82-40dc-42ee-bca9-83a9d53da06c","block_type":"box","text":"will be determined in the manner that results in the lowest possible rate being charged. The charge will be assessed on an amount","page_number":556,"box":{"x":45,"y":759,"width":896,"height":13}},{"id":"ea168150-2273-49b7-9b1a-499d7d42bd13","block_type":"box","text":"equal to the lesser of the proceeds of redemption or the cost of","page_number":556,"box":{"x":46,"y":775,"width":433,"height":12}},{"id":"0966b253-5651-4e87-947f-dd5054749b73","block_type":"box","text":"the shares being redeemed. Accordingly, no CDSC will be imposed","page_number":556,"box":{"x":483,"y":775,"width":463,"height":12}},{"id":"72778b93-10f1-46ba-b038-e05e9060c049","block_type":"box","text":"on increases in NAV above the initial purchase price of Investor C Shares. In addition, no CDSC will be assessed on Investor C","page_number":556,"box":{"x":46,"y":790,"width":879,"height":13}},{"id":"60c39329-67fd-41b8-8885-e17a9949eae5","block_type":"box","text":"Shares acquired through reinvestment of dividends. It will be assumed that the redemption is first of shares held for over one year","page_number":556,"box":{"x":46,"y":806,"width":896,"height":12}},{"id":"c0c24cf8-6e05-4f30-b872-9a6813990239","block_type":"box","text":"or shares acquired pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":556,"box":{"x":46,"y":821,"width":899,"height":13}},{"id":"0cd88fd8-7b55-40b6-8e78-e2a892248517","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 redemption.","page_number":556,"box":{"x":46,"y":837,"width":824,"height":12}},{"id":"3c131fe2-61b4-4053-b591-5ace70bef875","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of the Fund’s SAI for information about amounts","page_number":556,"box":{"x":46,"y":862,"width":902,"height":12}},{"id":"29be6c53-dc5d-404a-b32c-f2ed1d3fbe83","block_type":"box","text":"paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":556,"box":{"x":45,"y":877,"width":565,"height":13}},{"id":"b9c6a478-d351-4fbe-9fc2-176c9fd087de","block_type":"box","text":"II-39","page_number":556,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"580b77f7-e108-4efb-8f52-ef6d7cb83db6","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":556,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"71bb8fd3-f2bf-4ff1-a57a-433c3cb71d88","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares purchased through","page_number":557,"box":{"x":45,"y":79,"width":859,"height":13}},{"id":"dea193a3-dd13-41f4-85c5-ff92f9b70620","block_type":"box","text":"certain employer-sponsored retirement plans and fee-based programs previously approved by certain Funds and rollovers of","page_number":557,"box":{"x":45,"y":94,"width":860,"height":13}},{"id":"ef4091e2-6212-4d56-be86-7b2b9afa7fd6","block_type":"box","text":"current investments in the Fund through such plans; (2) exchanges pursuant to the exchange privilege described in the Fund’s","page_number":557,"box":{"x":45,"y":110,"width":867,"height":13}},{"id":"0552319f-fec1-4021-8772-11203fa8a772","block_type":"box","text":"Prospectus; (3) redemptions made in connection with minimum re","page_number":557,"box":{"x":45,"y":125,"width":459,"height":13}},{"id":"acc2cec9-a032-4f32-961a-98c418f5ef6a","block_type":"box","text":"quired distributions due to the shareholder reaching age 72 from","page_number":557,"box":{"x":505,"y":125,"width":448,"height":13}},{"id":"fd8e2364-8d02-4e73-ab06-90da85e1e2f9","block_type":"box","text":"IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain retirement plans sponsored by BlackRock or its","page_number":557,"box":{"x":45,"y":141,"width":848,"height":13}},{"id":"19e9ef6e-bec0-444a-91af-c4a7bd804465","block_type":"box","text":"affiliates; (5) redemptions in connection with a shareholder’s death as long as the waiver request is made within one year of death","page_number":557,"box":{"x":46,"y":156,"width":897,"height":13}},{"id":"31f1b694-a07f-4e0b-a278-df385aaa200a","block_type":"box","text":"or, if later, reasonably promptly following completion of probate","page_number":557,"box":{"x":46,"y":172,"width":451,"height":13}},{"id":"8c09f209-04db-4a59-975e-66230f2a8871","block_type":"box","text":"(including in connection with the distribution of account assets","page_number":557,"box":{"x":503,"y":172,"width":435,"height":13}},{"id":"2beff475-8b0b-4169-8702-f73bcc5b1451","block_type":"box","text":"to a beneficiary of the decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares;","page_number":557,"box":{"x":45,"y":187,"width":820,"height":13}},{"id":"4ff6ee9c-4e6d-4651-ba0e-aa1e648612e2","block_type":"box","text":"(6) withdrawals resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":557,"box":{"x":46,"y":203,"width":867,"height":13}},{"id":"80ae68e8-9522-4cdb-b63d-a93cc4feaa29","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described in","page_number":557,"box":{"x":45,"y":218,"width":821,"height":13}},{"id":"b8f276b2-bf5d-46fc-b894-4e8972eedd85","block_type":"box","text":"“Redemption of Shares” below; (8) redemptions made pursuan","page_number":557,"box":{"x":47,"y":234,"width":438,"height":13}},{"id":"ad6bc94c-23d5-46e5-ab49-6e5aed220102","block_type":"box","text":"t to a systematic withdrawal plan, subject to the limitations set","page_number":557,"box":{"x":485,"y":234,"width":435,"height":13}},{"id":"89f5d6cf-71b0-444d-a2cb-af8c8888701f","block_type":"box","text":"forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY Mellon Investment Servicing","page_number":557,"box":{"x":45,"y":249,"width":885,"height":13}},{"id":"d912a7dd-c5b4-4acf-ab43-dc2bc2d2c91c","block_type":"box","text":"Trust Company custodial IRA fees; and (10) redemptions when a share","page_number":557,"box":{"x":45,"y":265,"width":495,"height":13}},{"id":"c1ccf4c2-8263-48fc-824f-fbd4f30c2e08","block_type":"box","text":"holder can demonstrate hardship, in the absolute discretion","page_number":557,"box":{"x":541,"y":265,"width":411,"height":13}},{"id":"9778db8f-9310-4b17-9106-546a70eebc12","block_type":"box","text":"of the Fund. In addition, no CDSC is charged on Investor C S","page_number":557,"box":{"x":46,"y":280,"width":426,"height":13}},{"id":"694cabc3-3252-48aa-ba15-55a5ff425f0a","block_type":"box","text":"hares acquired through the reinvestment of dividends or","page_number":557,"box":{"x":473,"y":280,"width":388,"height":13}},{"id":"2be2b9cb-d214-493a-95e4-bddc2edfa67d","block_type":"box","text":"distributions.","page_number":557,"box":{"x":46,"y":296,"width":90,"height":10}},{"id":"7f03efd6-8fe1-4d89-9033-8db023c9fe1f","block_type":"box","text":"WeLEAF has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020, Investor C Shares","page_number":557,"box":{"x":45,"y":319,"width":876,"height":13}},{"id":"0d9e5b4a-b125-485a-8702-1b00296a7033","block_type":"box","text":"held for approximately eight years will be converted into Investor A Shares, as set forth in the Fund’s Prospectus. In addition,","page_number":557,"box":{"x":45,"y":335,"width":868,"height":12}},{"id":"b028c1f0-38d8-4922-b995-e8a0922b9701","block_type":"box","text":"accounts that do not have a financial intermediary associated with them are not eligible to hold Investor C Shares, and any","page_number":557,"box":{"x":46,"y":350,"width":850,"height":13}},{"id":"6eea85ea-6fdb-4c80-ba62-b01421cc43fb","block_type":"box","text":"Investor C Shares held in such accounts will be automatically converted to Investor A Shares.","page_number":557,"box":{"x":45,"y":366,"width":645,"height":12}},{"id":"1a2187c3-6eed-440b-a8c0-1f7cdabf6145","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be","page_number":557,"box":{"x":46,"y":389,"width":467,"height":13}},{"id":"971262d2-0b5b-4b13-a06f-d0221c0d8b80","block_type":"box","text":"available to customers of certain financial intermediaries, as","page_number":557,"box":{"x":518,"y":389,"width":414,"height":12}},{"id":"b1974ec8-4b8a-4637-bad4-4acaa52e7fe2","block_type":"box","text":"described under “Intermediary-Defined Sales Charge Waiver Polic","page_number":557,"box":{"x":46,"y":404,"width":458,"height":13}},{"id":"bd468db5-982f-4099-a6f6-4db10c101c26","block_type":"box","text":"ies” in the Fund’s Prospectus. Please speak to your financial","page_number":557,"box":{"x":505,"y":404,"width":413,"height":13}},{"id":"50b0cbec-c235-4825-b832-9288a67ce084","block_type":"box","text":"intermediary for more information.","page_number":557,"box":{"x":45,"y":420,"width":245,"height":13}},{"id":"059f6fc3-230b-42ac-91e0-5f03cfe73fa3","block_type":"box","text":"Investor A Shares of the Fund that were (1) acquired through the use of the exchange privilege and (2) can be traced back to a","page_number":557,"box":{"x":45,"y":443,"width":874,"height":13}},{"id":"11791756-f3df-4cb6-84c1-23054eba77fb","block_type":"box","text":"purchase of shares in one or more investment portfolios of the Fund for which a sales charge was paid, can be exchanged for","page_number":557,"box":{"x":45,"y":459,"width":865,"height":12}},{"id":"cac1d481-dc8f-488d-a7fc-cb87a55b44d3","block_type":"box","text":"Investor A Shares of the Fund subject to a sales charge.","page_number":557,"box":{"x":45,"y":474,"width":380,"height":13}},{"id":"0743b9be-4ab5-47ab-8673-b89aed437bd3","block_type":"box","text":"A shareholder wishing to make an exchange may do so by sending a written request to the Fund at the following address:","page_number":557,"box":{"x":45,"y":497,"width":843,"height":13}},{"id":"c18fcafb-599d-490f-944a-0744b48e2dea","block_type":"box","text":"BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are automatically provided with telephone","page_number":557,"box":{"x":46,"y":513,"width":873,"height":13}},{"id":"a4463fb3-3312-4398-bbff-a8125ca9ce4f","block_type":"box","text":"exchange privileges when opening an account, unless they indicate on the Application that they do not wish to use this privilege.","page_number":557,"box":{"x":46,"y":528,"width":888,"height":13}},{"id":"60b1cd04-e9cd-4fe4-a8ec-25557c3e34c9","block_type":"box","text":"To add this feature to an existing account that previously did not provide this option, a request must be made in writing or by","page_number":557,"box":{"x":45,"y":544,"width":875,"height":13}},{"id":"bdda4201-331c-47f4-b21c-3cbc0c04ee0b","block_type":"box","text":"telephone. Once this election has been made, the sharehol","page_number":557,"box":{"x":45,"y":559,"width":400,"height":13}},{"id":"f09a3556-9885-4387-844c-9922fd36f05e","block_type":"box","text":"der may simply contact the Fund by telephone at (800) 441-7762 to","page_number":557,"box":{"x":446,"y":559,"width":472,"height":13}},{"id":"0d1f8570-1590-42f7-b6ef-85148ac8ab60","block_type":"box","text":"request the exchange. During periods of substantial economic or market change, telephone exchanges may be difficult to complete","page_number":557,"box":{"x":45,"y":575,"width":904,"height":13}},{"id":"39dcfcba-9066-40ed-910b-dcee4ab9cf11","block_type":"box","text":"and shareholders may have to submit exchange requests in writing.","page_number":557,"box":{"x":46,"y":590,"width":464,"height":13}},{"id":"9e4a4688-ff62-404c-a2fb-daae22c7e764","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being acquired, a new","page_number":557,"box":{"x":45,"y":614,"width":887,"height":12}},{"id":"1f64f0a2-9764-424a-bfeb-a3b4671f5f3a","block_type":"box","text":"account will be established with the same registration, dividend and capital gain options and broker of record as the account from","page_number":557,"box":{"x":46,"y":629,"width":901,"height":13}},{"id":"0290b6ee-8a1e-4f1b-9760-c5751bc14ecc","block_type":"box","text":"which shares are exchanged, unless otherwise specified in writing b","page_number":557,"box":{"x":45,"y":645,"width":465,"height":12}},{"id":"0e5a987b-4f80-47c1-a3ef-f0dc8d1fecdc","block_type":"box","text":"y the shareholder with all signatures guaranteed by an eligible","page_number":557,"box":{"x":511,"y":645,"width":428,"height":12}},{"id":"5361a30b-4fd0-4e98-89e0-77144e8a76d6","block_type":"box","text":"guarantor institution. In order to participate in the Automatic In","page_number":557,"box":{"x":45,"y":660,"width":447,"height":13}},{"id":"d74e31af-ae4c-46dd-bd8f-ff3c6e63dae9","block_type":"box","text":"vestment Program or establish a Systematic Withdrawal Plan for","page_number":557,"box":{"x":492,"y":660,"width":448,"height":13}},{"id":"a74e2449-1164-4903-bae9-e42348c37873","block_type":"box","text":"the new account, however, an exchanging shareholder must file a specific written request.","page_number":557,"box":{"x":45,"y":676,"width":621,"height":12}},{"id":"56c47eac-d2de-41ef-9af4-cd5fad37ae11","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and must be legally","page_number":557,"box":{"x":45,"y":699,"width":875,"height":13}},{"id":"e64b4962-a8a7-4e53-9dcf-07d0be6bd63f","block_type":"box","text":"available for sale in the state of the investor’s residence. For Fed","page_number":557,"box":{"x":46,"y":714,"width":441,"height":10}},{"id":"feb29dc9-4291-4822-9336-91a35e4b70c7","block_type":"box","text":"eral income tax purposes, a share exchange is a taxable event and,","page_number":557,"box":{"x":488,"y":714,"width":458,"height":13}},{"id":"32df917e-5c20-4f30-bf28-7e9dd3ad3ff5","block_type":"box","text":"accordingly, a capital gain or loss may be realized. Before making an exchange request, shareholders should consult a tax or other","page_number":557,"box":{"x":46,"y":730,"width":900,"height":13}},{"id":"4cb3dfa9-3d28-4975-b56f-d93b08858148","block_type":"box","text":"financial adviser and should consider the investment objective, policies and restrictions of the investment portfolio into which the","page_number":557,"box":{"x":45,"y":745,"width":895,"height":13}},{"id":"f955d17e-a62a-4ab9-8ae0-9b2db90af2dd","block_type":"box","text":"shareholder is making an exchange. Brokers may charge a fee for handling exchanges.","page_number":557,"box":{"x":46,"y":761,"width":595,"height":13}},{"id":"b815f261-4d54-4fea-8fc4-88f9243a3db1","block_type":"box","text":"The Fund reserves the right to suspend, modify or terminate t","page_number":557,"box":{"x":45,"y":784,"width":426,"height":13}},{"id":"357a5cd4-73c0-4dc0-bd9b-195fc5e8d1a0","block_type":"box","text":"he exchange privilege at any time. Notice will be given to","page_number":557,"box":{"x":472,"y":784,"width":395,"height":13}},{"id":"55a8d382-8d13-4981-aa8a-cfb20094567d","block_type":"box","text":"shareholders of any material modification or termination ex","page_number":557,"box":{"x":46,"y":800,"width":416,"height":13}},{"id":"58e887e1-a1d5-4e35-84fd-b0e4adba03da","block_type":"box","text":"cept where notice is not required. The Fund reserves the right to reject","page_number":557,"box":{"x":462,"y":800,"width":485,"height":13}},{"id":"a0fb8df9-a6d9-49e6-b900-58afcb26407c","block_type":"box","text":"any telephone exchange request. Telephone exchanges may be subject to limitations as to amount or frequency, and to other","page_number":557,"box":{"x":46,"y":815,"width":863,"height":13}},{"id":"7b91827a-2797-4dba-b248-99b2ab33af9d","block_type":"box","text":"restrictions that may be established from time to time to ensure that exchanges do not operate to the disadvantage of any portfolio","page_number":557,"box":{"x":45,"y":831,"width":905,"height":13}},{"id":"11dcfbde-63fc-49aa-a773-2fa2a213e429","block_type":"box","text":"or its shareholders. The Fund, the Administrator and BRIL will employ reasonable procedures to confirm that instructions","page_number":557,"box":{"x":46,"y":846,"width":848,"height":13}},{"id":"b01e5ee3-39aa-494f-be40-6f9527a50714","block_type":"box","text":"communicated by telephone are genuine. The Fund, the Trust, the Administrator and BRIL will not be liable for any loss, liability,","page_number":557,"box":{"x":45,"y":862,"width":903,"height":13}},{"id":"e39fb79b-c93e-4667-97fc-7c046afb9b7f","block_type":"box","text":"cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with such procedures.","page_number":557,"box":{"x":45,"y":877,"width":869,"height":13}},{"id":"6b427fb9-56d1-40ae-a2b7-300fabadc120","block_type":"box","text":"II-40","page_number":557,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"cfc3441d-d02f-4a94-bfed-665f05bddd90","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":557,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"00426f22-09e0-485a-ab14-b3ba5ddc85e3","block_type":"box","text":"By use of the exchange privilege, the investor authorizes the Fund’s transfer agent to act on telephonic or written exchange","page_number":558,"box":{"x":46,"y":79,"width":848,"height":13}},{"id":"48eca585-2ebb-4fb1-9b7f-68af6b01a59d","block_type":"box","text":"instructions from any person representing him-or herself to be the investor and believed by the Fund’s transfer agent to be genuine.","page_number":558,"box":{"x":45,"y":94,"width":906,"height":13}},{"id":"76cf15f5-aaa1-4076-88ad-5ad9940a859b","block_type":"box","text":"The records of the Fund’s transfer agent pertaining to such instru","page_number":558,"box":{"x":45,"y":110,"width":452,"height":13}},{"id":"fd4a5339-2b73-4d08-838c-f2a11f5dbd1f","block_type":"box","text":"ctions are binding. The exchange privilege may be modified or","page_number":558,"box":{"x":497,"y":110,"width":432,"height":13}},{"id":"e6480e40-eb6a-469b-84b4-bc30e0c2e151","block_type":"box","text":"terminated at any time upon 60 days’ notice to affected sharehol","page_number":558,"box":{"x":45,"y":125,"width":447,"height":13}},{"id":"78fef6f4-28ee-49ff-a6e2-959965905a2f","block_type":"box","text":"ders. The exchange privilege is only available in states where the","page_number":558,"box":{"x":493,"y":125,"width":445,"height":13}},{"id":"dc9f0d43-92ac-425d-ab42-e445647037ca","block_type":"box","text":"exchange may legally be made.","page_number":558,"box":{"x":46,"y":141,"width":213,"height":13}},{"id":"289d1c77-077a-43eb-a8a3-403e14bd7ad4","block_type":"box","text":"The redemption of shares of one fund and the subsequent investment in another fund generally will be treated as two separate","page_number":558,"box":{"x":45,"y":162,"width":874,"height":13}},{"id":"c2861043-3b3a-40ce-820d-d54c86617250","block_type":"box","text":"transactions. Therefore, a front-end sales charge will be impo","page_number":558,"box":{"x":45,"y":178,"width":425,"height":13}},{"id":"b83a0448-79b6-43c6-884a-a77b3c576353","block_type":"box","text":"sed (unless an exemption applies) on the purchase of Investor A or","page_number":558,"box":{"x":471,"y":178,"width":460,"height":13}},{"id":"827d7fa5-c139-4ab4-b6e3-b9dd16fdc59c","block_type":"box","text":"Investor A1 Shares of an Investor A Load BlackRock Fund with the proceeds of a redemption of Investor Shares of WeLEAF. In","page_number":558,"box":{"x":45,"y":193,"width":889,"height":13}},{"id":"abfff686-a00b-4638-8be1-d8df9f08c3e1","block_type":"box","text":"addition, when Investor Shares of WeLEAF are redeemed and the proceeds are used to purchase Investor C Shares of a","page_number":558,"box":{"x":46,"y":209,"width":822,"height":13}},{"id":"cd0d0dee-7488-4ed8-9bea-2a04c9b19a7c","block_type":"box","text":"Non-Money Market Portfolio, a CDSC will be imposed (unless an exemption applies) when the Investor C Shares of the","page_number":558,"box":{"x":45,"y":224,"width":836,"height":13}},{"id":"4feca3c1-4564-42be-9d3d-eb9d482c3a19","block_type":"box","text":"Non-Money Market Portfolio are redeemed.","page_number":558,"box":{"x":45,"y":240,"width":310,"height":13}},{"id":"120dcc20-0a46-4497-b9d8-0caf846288b5","block_type":"box","text":"Automatic Investment Plan (“AIP”).","page_number":558,"box":{"x":45,"y":261,"width":252,"height":13}},{"id":"991b97de-c8f3-4605-acd8-b5bff7698be3","block_type":"box","text":"Certain shareholders may arrange for periodic investments in the Fund through automatic","page_number":558,"box":{"x":303,"y":261,"width":624,"height":13}},{"id":"cbc255d2-e44b-425f-9397-07b861f7cfbf","block_type":"box","text":"deductions from a checking or savings account by completing the AIP Application which may be obtained from the Fund at","page_number":558,"box":{"x":46,"y":277,"width":858,"height":13}},{"id":"6b5a5369-e724-416c-8d88-9197037aee1d","block_type":"box","text":"(800) 441-7762, or online at www.blackrock.com. The minimum pre-authorized investment amount is $50 per Fund.","page_number":558,"box":{"x":46,"y":292,"width":818,"height":13}},{"id":"a93b4bc5-ef26-4cff-a057-c1294aeb3213","block_type":"box","text":"Systematic Withdrawal Plan (“SWP”).","page_number":558,"box":{"x":46,"y":314,"width":266,"height":13}},{"id":"5a2f683a-954a-4fb2-9653-083e0df8ae6d","block_type":"box","text":"WeLEAF offers a Systematic Withdrawal Plan to shareholders who wish to receive regular","page_number":558,"box":{"x":317,"y":314,"width":627,"height":13}},{"id":"6fb64d62-66c0-41f6-805e-fa6ac74ec466","block_type":"box","text":"distributions from their accounts. Upon commencement of the","page_number":558,"box":{"x":46,"y":329,"width":432,"height":13}},{"id":"fcbaf265-a780-4164-84c7-64c93a19a4f5","block_type":"box","text":"SWP, the account must have a current value of $10,000 or more in","page_number":558,"box":{"x":483,"y":329,"width":465,"height":13}},{"id":"b2f6e8f5-bcaa-4dd6-a9de-44322b0acece","block_type":"box","text":"the Fund. Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day for","page_number":558,"box":{"x":45,"y":345,"width":903,"height":13}},{"id":"b881cd41-7757-45eb-9a08-59cf2f966b9f","block_type":"box","text":"the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such day is not a","page_number":558,"box":{"x":45,"y":360,"width":867,"height":13}},{"id":"f038dce4-2518-4b90-8494-0de914a0773e","block_type":"box","text":"Business Day, on the prior Business Day and are paid promptly thereafter. An investor may utilize the SWP by completing the","page_number":558,"box":{"x":46,"y":376,"width":871,"height":13}},{"id":"a2813596-c154-409a-9288-391133d4e723","block_type":"box","text":"Systematic Withdrawal Plan Application Form which may be obtained by calling the Fund or by visiting our website at","page_number":558,"box":{"x":46,"y":391,"width":826,"height":13}},{"id":"44620bf8-b39c-4fef-aaa6-4ada325b2a17","block_type":"box","text":"www.blackrock.com.","page_number":558,"box":{"x":45,"y":407,"width":149,"height":10}},{"id":"2dc68ee6-0040-4d9b-bac7-513584e83265","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income di","page_number":558,"box":{"x":46,"y":428,"width":448,"height":10}},{"id":"550cd15d-6d27-42ba-bffd-755170c5759c","block_type":"box","text":"vidends their invested principal in the account will be depleted.","page_number":558,"box":{"x":495,"y":428,"width":435,"height":13}},{"id":"659fddd3-747d-4764-ac38-6106805f6a56","block_type":"box","text":"To participate in the SWP, shareholders must have their dividends automatically reinvested. Shareholders may change or cancel","page_number":558,"box":{"x":45,"y":444,"width":884,"height":13}},{"id":"33a2bb8d-e67d-4692-9844-30a6eb8a0ae0","block_type":"box","text":"the SWP at any time, upon written notice to the Fund, or by calling the Fund at (800) 441-7762.","page_number":558,"box":{"x":45,"y":459,"width":670,"height":13}},{"id":"a54e4c6d-ab63-4be6-9f95-db924d4ec56c","block_type":"box","text":"For this reason, a shareholder may not participate in the Autom","page_number":558,"box":{"x":45,"y":481,"width":443,"height":13}},{"id":"5c225512-80d3-46b4-8dc6-00ae2c2823ec","block_type":"box","text":"atic Investment Plan (see “Account Services and Privileges —","page_number":558,"box":{"x":489,"y":481,"width":421,"height":13}},{"id":"0ebab656-f45a-4c26-8846-342341a48a09","block_type":"box","text":"Automatic Investment Plan” in the Fund’s Prospectus) and the Systematic Withdrawal Plan at the same time.","page_number":558,"box":{"x":45,"y":496,"width":755,"height":13}},{"id":"4672d009-b95e-40ea-8f0b-f22f04ec9218","block_type":"box","text":"Dividend Allocation Plan.","page_number":558,"box":{"x":45,"y":518,"width":179,"height":10}},{"id":"79bc8bbd-aa7e-44a4-8d63-d39a43c25242","block_type":"box","text":"The Dividend Allocation Plan allows shareholders to elect to have all their dividends and any other","page_number":558,"box":{"x":229,"y":518,"width":687,"height":13}},{"id":"2656bad6-63b3-4479-8e52-3f43fceeb173","block_type":"box","text":"distributions from WeLEAF or any Eligible Fund (which include","page_number":558,"box":{"x":46,"y":533,"width":445,"height":13}},{"id":"0df2e54f-a193-44b9-8d13-170a4a346366","block_type":"box","text":"s the Fund and other funds as designated by BRIL from time to","page_number":558,"box":{"x":492,"y":533,"width":438,"height":13}},{"id":"f5eace3a-9d78-4b35-8c8b-4ef804ca7ff7","block_type":"box","text":"time) automatically invested at NAV in one other such Eligible","page_number":558,"box":{"x":45,"y":549,"width":435,"height":13}},{"id":"0c5272f0-3b38-4c09-a126-55cae430959a","block_type":"box","text":"Fund designated by the shareholder, provided the account into","page_number":558,"box":{"x":485,"y":549,"width":434,"height":13}},{"id":"a033d93d-eb2f-46da-b770-99d8be6bd8b6","block_type":"box","text":"which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":558,"box":{"x":45,"y":564,"width":730,"height":13}},{"id":"4b798a7c-7a97-4235-aa38-c4312d0d7532","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares.","page_number":558,"box":{"x":46,"y":586,"width":372,"height":10}},{"id":"a6e34283-7ca1-4877-a6cd-501568b46e1d","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight","page_number":558,"box":{"x":424,"y":586,"width":509,"height":13}},{"id":"d0495306-a345-45cd-a717-135089cf0451","block_type":"box","text":"years after purchase, Investor C Shares of WeLEAF will convert automatically into Investor A Shares of WeLEAF (the “Investor C","page_number":558,"box":{"x":45,"y":601,"width":904,"height":13}},{"id":"dc20dd14-2871-4d97-a269-26ec0adcf257","block_type":"box","text":"8-Year Conversion”). It is the financial intermediary’s responsib","page_number":558,"box":{"x":46,"y":617,"width":443,"height":13}},{"id":"47b1bf06-016f-432a-8ed9-50c5bfccb3f9","block_type":"box","text":"ility to ensure that the shareholder is credited with the proper","page_number":558,"box":{"x":490,"y":617,"width":425,"height":13}},{"id":"6c7951c4-2fd6-4341-a55c-a4d1920166ad","block_type":"box","text":"holding period. As of the Effective Date, certain financial intermed","page_number":558,"box":{"x":45,"y":632,"width":461,"height":13}},{"id":"b764144f-0598-4751-bc7e-5a90cd046332","block_type":"box","text":"iaries, including group retirement recordkeeping platforms, may","page_number":558,"box":{"x":507,"y":632,"width":444,"height":13}},{"id":"6c7f6b8d-ea75-4ae7-bbba-a3d8ebcffcd7","block_type":"box","text":"not have been tracking such holding periods and therefore may not be able to process such conversions. In such instances,","page_number":558,"box":{"x":45,"y":648,"width":845,"height":13}},{"id":"2a7e1ac3-f5db-41a3-be3f-4ee583ec0953","block_type":"box","text":"Investor C Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after the","page_number":558,"box":{"x":45,"y":663,"width":897,"height":13}},{"id":"a80e12e3-92a4-4e0d-bb0f-be5b650b6a29","block_type":"box","text":"Effective Date. If, as of November 23, 2028 (eight years after the E","page_number":558,"box":{"x":45,"y":679,"width":464,"height":13}},{"id":"03f2a2c5-87ff-46c0-96a3-d19450d9ce23","block_type":"box","text":"ffective Date), a financial intermediary has not implemented","page_number":558,"box":{"x":510,"y":679,"width":416,"height":13}},{"id":"e596e207-df74-4454-9ed0-950b5777138a","block_type":"box","text":"systems or procedures to track holding periods commencing fro","page_number":558,"box":{"x":46,"y":694,"width":441,"height":13}},{"id":"a4eedee1-33d6-4e26-996b-3633ef84c4b6","block_type":"box","text":"m the Effective Date, shareholders holding Investor C Shares","page_number":558,"box":{"x":487,"y":694,"width":420,"height":13}},{"id":"e6f550ec-6b96-4db7-90bc-fd7b4f1111a0","block_type":"box","text":"through such financial intermediary will no longer be eligible to hold Investor C Shares and any such shares will convert to","page_number":558,"box":{"x":45,"y":710,"width":852,"height":13}},{"id":"e315c28e-a2e4-4dea-bb89-0c69db8002f7","block_type":"box","text":"Investor A Shares as soon as reasonably practicable after such date.","page_number":558,"box":{"x":45,"y":725,"width":466,"height":13}},{"id":"a1361a36-992f-46f2-9264-be0888bd26aa","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold Investor C Shares, and","page_number":558,"box":{"x":45,"y":747,"width":907,"height":13}},{"id":"49766624-5a35-4711-8d6a-85ef6c8e39f0","block_type":"box","text":"any Investor C Shares held in such accounts will be automatically converted into Investor A Shares (the “Investor C Direct","page_number":558,"box":{"x":46,"y":762,"width":848,"height":13}},{"id":"1f8e85d4-29ea-4201-bd8c-aa94c16c83a3","block_type":"box","text":"Accounts Conversion” and together with the Investor C 8-Year Conversion, the “Investor C Conversions”).","page_number":558,"box":{"x":45,"y":778,"width":749,"height":13}},{"id":"7174a79f-0e52-4fea-8444-0ae77c32e279","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the basis of the relative","page_number":558,"box":{"x":45,"y":800,"width":905,"height":12}},{"id":"962e82bb-5c30-4702-9928-abd90a087b06","block_type":"box","text":"NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the imposition of any sales load, fee","page_number":558,"box":{"x":45,"y":815,"width":893,"height":13}},{"id":"b9fee479-3706-47f6-bae5-5ce30a8c459e","block_type":"box","text":"or other charge. The Investor C Conversions will not be deemed a purchase or sale of the shares for U.S. federal income tax","page_number":558,"box":{"x":46,"y":831,"width":856,"height":12}},{"id":"416f524e-e278-41d4-8abb-edd3c2c9d887","block_type":"box","text":"purposes. Shares acquired through reinvestment of dividends on Investor C Shares will also convert automatically to Investor A","page_number":558,"box":{"x":45,"y":846,"width":884,"height":13}},{"id":"405616a1-f7cb-4d45-8ced-5eac4a010361","block_type":"box","text":"Shares, as set forth in WeLEAF’s Prospectus. The Investor C Conversion Date for dividend reinvestment shares will be calculated","page_number":558,"box":{"x":46,"y":862,"width":894,"height":12}},{"id":"c6e711eb-d7d0-4fe9-97bd-011a3c9722ba","block_type":"box","text":"taking into account the length of time the shares underlying the dividend reinvestment shares were outstanding.","page_number":558,"box":{"x":45,"y":877,"width":772,"height":13}},{"id":"5e171fbc-b7c0-4a64-bcac-142e8f29a72e","block_type":"box","text":"II-41","page_number":558,"box":{"x":482,"y":917,"width":33,"height":9}},{"id":"05edfcbd-d1ce-4ea7-961e-e21a65287416","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":558,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d8149251-0ec8-43d1-aec1-385a53003859","block_type":"box","text":"Institutional Shares","page_number":559,"box":{"x":45,"y":79,"width":141,"height":10}},{"id":"200d4077-d941-4b7f-9047-40dd2bda67bb","block_type":"box","text":"Purchase of Shares.","page_number":559,"box":{"x":45,"y":105,"width":133,"height":10}},{"id":"3a85d1b4-5837-47cf-ae05-c565b6bd4455","block_type":"box","text":"WeLEAF offers Institutional Shares as described in the Fund’s Prospectus.","page_number":559,"box":{"x":183,"y":105,"width":512,"height":13}},{"id":"06f9560d-d960-4a8e-9e3b-9fc8125d91e0","block_type":"box","text":"The following investors may purchase Institutional Shares of WeLEAF, provided that the beneficial owners of such shares are","page_number":559,"box":{"x":45,"y":129,"width":870,"height":13}},{"id":"83b1d435-87a3-4cb8-b830-ead8d1f4c66f","block_type":"box","text":"natural persons: employees, officers and directors/trustees of","page_number":559,"box":{"x":45,"y":145,"width":419,"height":13}},{"id":"b13c76be-196d-4b74-bac3-d127c842a2fa","block_type":"box","text":"BlackRock, Inc., BlackRock Funds, BofA Corp., Barclays PLC or","page_number":559,"box":{"x":469,"y":145,"width":451,"height":13}},{"id":"e147dedb-1aa8-451a-a757-c5786cdfd64f","block_type":"box","text":"their respective affiliates and immediate family members of such persons, if they open an account directly with BlackRock;","page_number":559,"box":{"x":45,"y":160,"width":849,"height":13}},{"id":"8ff61140-8e6a-48e9-ae40-496338cfbda9","block_type":"box","text":"individuals with a minimum initial investment of $2 million who may purchase shares of the Fund through a financial","page_number":559,"box":{"x":45,"y":175,"width":819,"height":14}},{"id":"56a10f92-6ee3-4e8f-b954-c8fa541493c0","block_type":"box","text":"intermediary that has entered into an agreement with the Distri","page_number":559,"box":{"x":45,"y":191,"width":439,"height":13}},{"id":"5223fbea-fe49-4ef3-bf4e-bb5a753d6ce1","block_type":"box","text":"butor to purchase such shares; employer-sponsored retirement","page_number":559,"box":{"x":485,"y":191,"width":431,"height":13}},{"id":"a09812bf-8087-4a46-bd89-d5dbdfd09c51","block_type":"box","text":"plans (which, for this purpose, do not include SEP IRAs, SIMPLE IRAs or SARSEPs) and state sponsored 529 college savings","page_number":559,"box":{"x":45,"y":207,"width":867,"height":13}},{"id":"ee30992d-f5ff-4a4b-b619-400de18d5461","block_type":"box","text":"plans, each of which may purchase shares of the Fund through a","page_number":559,"box":{"x":45,"y":222,"width":447,"height":13}},{"id":"756726ca-17b4-416d-bc81-deb8fc3108c7","block_type":"box","text":"financial intermediary that has entered into an agreement with","page_number":559,"box":{"x":497,"y":222,"width":433,"height":13}},{"id":"76984139-c58c-4d0d-a818-c482745e6da3","block_type":"box","text":"the Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program sponsored by a","page_number":559,"box":{"x":45,"y":238,"width":891,"height":13}},{"id":"a616c586-6246-435c-9059-49d26e27f813","block_type":"box","text":"retirement plan record-keeper, provided that such program offers only mutual fund options and that the program maintains an","page_number":559,"box":{"x":45,"y":253,"width":882,"height":13}},{"id":"ec20f244-18f9-4725-8574-1dc40c4b4962","block_type":"box","text":"account with the Fund on an omnibus basis; clients of financial int","page_number":559,"box":{"x":46,"y":269,"width":461,"height":12}},{"id":"8d0f2dfb-6168-4184-a542-b1f50fb25b33","block_type":"box","text":"ermediaries that: (i) charge such clients a fee for advisory,","page_number":559,"box":{"x":507,"y":269,"width":398,"height":13}},{"id":"b5841054-af93-415e-954d-cd740515a9db","block_type":"box","text":"investment consulting, or similar services or (ii) have entered in","page_number":559,"box":{"x":45,"y":284,"width":437,"height":13}},{"id":"16f719f1-42b9-4688-91f7-ccdc452826bc","block_type":"box","text":"to an agreement with the Distributor to offer Institutional Shares","page_number":559,"box":{"x":482,"y":284,"width":450,"height":13}},{"id":"59a6148c-82fa-440c-8165-17b911c9726f","block_type":"box","text":"through a no-load program or investment platform, in each case, with no minimum initial investment; clients investing through","page_number":559,"box":{"x":45,"y":300,"width":883,"height":13}},{"id":"efdb37ad-18d7-42c1-a8a0-04fc4ccf4377","block_type":"box","text":"financial intermediaries that have entered","page_number":559,"box":{"x":45,"y":315,"width":286,"height":10}},{"id":"645068f0-8d8a-468c-a6b7-484d4976ee4b","block_type":"box","text":"into an agreement with the Distributor to offer such shares on a platform that charges a","page_number":559,"box":{"x":336,"y":315,"width":609,"height":13}},{"id":"24f28f9d-2373-47dd-b3eb-2f30c47e8222","block_type":"box","text":"transaction based sales commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for","page_number":559,"box":{"x":45,"y":330,"width":893,"height":14}},{"id":"d46e6411-3dc8-4914-9f5a-70c727429137","block_type":"box","text":"insurance agents that are registered representatives of an insura","page_number":559,"box":{"x":45,"y":346,"width":438,"height":13}},{"id":"64163c74-45b0-4d06-9be6-019f9e141a15","block_type":"box","text":"nce company’s broker-dealer that has entered into an agreement","page_number":559,"box":{"x":484,"y":346,"width":445,"height":13}},{"id":"6eb6c9e3-4fbe-4c3b-a476-bacdbd107b79","block_type":"box","text":"with the Distributor to offer Institutional Shares, and the fam","page_number":559,"box":{"x":45,"y":362,"width":426,"height":12}},{"id":"866fd64b-b235-4193-9823-90bb22cfe508","block_type":"box","text":"ily members of such persons, with a minimum initial investment of","page_number":559,"box":{"x":471,"y":362,"width":464,"height":13}},{"id":"4e4a9f31-541c-4e23-b7fd-2ad776381481","block_type":"box","text":"$1,000; trust department clients of Bank of America, N.A. and its affiliates for whom they (i) act in a fiduciary capacity (excluding","page_number":559,"box":{"x":46,"y":377,"width":905,"height":13}},{"id":"9778faee-ab74-4884-9581-152a1a1730f8","block_type":"box","text":"participant directed employee benefit plans), (ii) otherwise have investment discretion, or (iii) act as custodian for at least","page_number":559,"box":{"x":45,"y":393,"width":837,"height":13}},{"id":"6457177f-bfb4-4e08-890b-a5adcbc424e5","block_type":"box","text":"$2 million in assets; and holders of certain BofA Corp. sponsored","page_number":559,"box":{"x":46,"y":408,"width":453,"height":13}},{"id":"9cf8a7d0-807b-4444-937d-6a4a9a940b05","block_type":"box","text":"unit investment trusts (UITs) who reinvest dividends received","page_number":559,"box":{"x":504,"y":408,"width":423,"height":13}},{"id":"051a21c0-2dba-436c-840e-2c921cff44c2","block_type":"box","text":"from such UITs in shares of the Fund.","page_number":559,"box":{"x":45,"y":424,"width":262,"height":10}},{"id":"823d6a87-0a8e-498a-8be4-dee6eecdf4c0","block_type":"box","text":"The Fund may in its discretion waive or modify any minimum investment amount, may reject any order for any class of shares","page_number":559,"box":{"x":45,"y":448,"width":878,"height":12}},{"id":"af835367-f53d-4995-9206-c7ebf23d370c","block_type":"box","text":"and may suspend and resume the sale of shares of the Fund at any time.","page_number":559,"box":{"x":46,"y":463,"width":496,"height":13}},{"id":"8bbd8b44-2a73-4575-9860-7364bc352af9","block_type":"box","text":"Institutional Shares of the Fund may be purchased by customers of broker-dealers and agents that have established a servicing","page_number":559,"box":{"x":45,"y":487,"width":873,"height":13}},{"id":"54bf98e1-e406-4fdc-90c1-48739eda0ca2","block_type":"box","text":"relationship with the Fund on behalf of their customers. These broker-dealers and agents may impose additional or different","page_number":559,"box":{"x":45,"y":502,"width":861,"height":13}},{"id":"2194568c-e9e3-4d69-8d6b-3b329174822c","block_type":"box","text":"conditions on the purchase or redemption of Fund shares by their c","page_number":559,"box":{"x":45,"y":518,"width":466,"height":13}},{"id":"e4760580-5f0a-49e4-870c-2af533fe434d","block_type":"box","text":"ustomers and may charge their customers transaction, account","page_number":559,"box":{"x":512,"y":518,"width":433,"height":13}},{"id":"9c2b4d91-1df4-41f6-8674-fbfc3a3e0a27","block_type":"box","text":"or other fees on the purchase and redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its","page_number":559,"box":{"x":46,"y":533,"width":874,"height":13}},{"id":"71568dca-7c49-48d4-9287-94f0bdd968c2","block_type":"box","text":"customers a schedule of any such fees and information regarding any additional or different conditions regarding purchases and","page_number":559,"box":{"x":45,"y":549,"width":887,"height":13}},{"id":"1461ee91-0ccc-47a9-85d0-ea287e628295","block_type":"box","text":"redemptions. 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Payment may also,","page_number":559,"box":{"x":492,"y":619,"width":458,"height":13}},{"id":"ffed0aa6-0cbe-4aba-b381-80d9ec062851","block_type":"box","text":"in the discretion of the Fund, be made in the form of securities that are permissible investments for the Fund. If payment for a","page_number":559,"box":{"x":45,"y":635,"width":870,"height":13}},{"id":"8ab19b0d-8074-432e-b57d-1a9f3c751f2a","block_type":"box","text":"purchase order is not received by the prescribed time, an investor ma","page_number":559,"box":{"x":45,"y":650,"width":477,"height":13}},{"id":"c8938af1-ddf4-4077-b6e3-a5ea83796fb7","block_type":"box","text":"y be liable for any resulting losses or expenses incurred by the","page_number":559,"box":{"x":522,"y":650,"width":427,"height":13}},{"id":"96846330-2af7-478c-ba0d-0f232650ebd5","block_type":"box","text":"Fund.","page_number":559,"box":{"x":45,"y":666,"width":39,"height":10}},{"id":"b652a8af-c4a7-488e-bcca-361ccca886a1","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a financial","page_number":559,"box":{"x":45,"y":690,"width":819,"height":12}},{"id":"034d6b45-6886-4a73-9404-b4d932f26e8d","block_type":"box","text":"intermediary’s policies and procedures, exchange shares of the Fund from one class of shares to another class of shares of the","page_number":559,"box":{"x":45,"y":705,"width":866,"height":13}},{"id":"f9e837a6-f66d-431d-ac1b-16fcd1bd9849","block_type":"box","text":"Fund, provided that the exchanged shares are not subject to a C","page_number":559,"box":{"x":45,"y":721,"width":443,"height":13}},{"id":"6f8ab215-74c2-4776-bda9-43bf6f622b62","block_type":"box","text":"DSC and that shareholders meet eligibility requirements of the","page_number":559,"box":{"x":489,"y":721,"width":432,"height":13}},{"id":"8e2e9329-1269-4913-ae01-cfcc38ff0e6f","block_type":"box","text":"new share class. 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Institutions qualifying to trade on DCC&S include broker/","page_number":559,"box":{"x":494,"y":877,"width":445,"height":13}},{"id":"997d6690-668b-486b-b6c9-9ca99ef9c4ae","block_type":"box","text":"II-42","page_number":559,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"e88db757-b08e-44ef-b3ab-3da27aff6702","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":559,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"ff10edbe-7b15-49d3-80fe-f29b51d95b0d","block_type":"box","text":"dealers, trust companies and third party administrators. Please","page_number":560,"box":{"x":46,"y":79,"width":432,"height":13}},{"id":"40c33482-bb94-4916-bcff-bfbb2a9594d6","block_type":"box","text":"contact the Fund for information on agreements, procedures, sales","page_number":560,"box":{"x":483,"y":79,"width":460,"height":13}},{"id":"69000b93-585f-4869-9a97-9c88ab889745","block_type":"box","text":"charges and fees related to DCC&S transactions.","page_number":560,"box":{"x":45,"y":94,"width":339,"height":13}},{"id":"ce2c23c8-db16-4f55-8ddf-81997aec2bc6","block_type":"box","text":"Premier Shares","page_number":560,"box":{"x":45,"y":123,"width":108,"height":10}},{"id":"1cc9beca-8b0f-4fa1-9ab8-05f57732bf8b","block_type":"box","text":"Purchase of Shares.","page_number":560,"box":{"x":45,"y":148,"width":133,"height":10}},{"id":"39927cf8-57df-43e4-ab9e-855e04559289","block_type":"box","text":"WeLEAF offers Premier Shares as described in the Fund’s Prospectus.","page_number":560,"box":{"x":183,"y":148,"width":481,"height":13}},{"id":"78e06ce2-c02e-46a7-b389-f57d210b65b7","block_type":"box","text":"The following investors may purchase Premier Shares of WeLEAF, provided that the beneficial owners of such shares are natural","page_number":560,"box":{"x":45,"y":170,"width":894,"height":13}},{"id":"a2eb6ad2-cae1-4287-9f21-cfbdd3e49a8d","block_type":"box","text":"persons: employees of BlackRock whose accounts are held throug","page_number":560,"box":{"x":45,"y":186,"width":457,"height":12}},{"id":"bfaf2569-44b6-4b1b-96e4-de687d09db57","block_type":"box","text":"h a financial intermediary that has entered into an agreement","page_number":560,"box":{"x":502,"y":186,"width":423,"height":12}},{"id":"3430a452-22b9-44a1-9277-c9c90e9bf3e4","block_type":"box","text":"with the Distributor to offer Premier Shares; individuals with","page_number":560,"box":{"x":45,"y":201,"width":423,"height":13}},{"id":"6cbd1402-595a-4521-afc7-dd398ca48ce8","block_type":"box","text":"a minimum initial investment of $2 million who may purchase","page_number":560,"box":{"x":474,"y":201,"width":433,"height":13}},{"id":"78dd8906-417a-4695-a8b2-4615e2dd9a4a","block_type":"box","text":"shares of the Fund through a financial intermediary that has e","page_number":560,"box":{"x":46,"y":217,"width":427,"height":13}},{"id":"89f23820-402c-403c-a17d-1a800cc48971","block_type":"box","text":"ntered into an agreement with the Distributor to purchase such","page_number":560,"box":{"x":474,"y":217,"width":438,"height":13}},{"id":"660b3385-45a4-45b9-8704-9925b510d2c4","block_type":"box","text":"shares; clients of financial intermediaries that: (i) charge such c","page_number":560,"box":{"x":46,"y":232,"width":433,"height":13}},{"id":"f54f1036-a984-43a8-aae9-b93556549f7c","block_type":"box","text":"lients a fee for advisory, investment consulting, or similar services or","page_number":560,"box":{"x":480,"y":232,"width":472,"height":13}},{"id":"02c678ee-29dc-4fc0-a492-942ae287a558","block_type":"box","text":"(ii) have entered into an agreement with the Distributor to o","page_number":560,"box":{"x":46,"y":248,"width":416,"height":13}},{"id":"56736150-0d60-4df9-9fdd-b06c07c0023e","block_type":"box","text":"ffer Premier Shares through a no-load program or investment","page_number":560,"box":{"x":463,"y":248,"width":425,"height":13}},{"id":"fc560d8a-3baf-4299-a89f-63fa160c14d1","block_type":"box","text":"platform, in each case, with no minimum initial investment; and c","page_number":560,"box":{"x":45,"y":263,"width":457,"height":13}},{"id":"3c9abb01-fee5-4271-af90-637b819d474b","block_type":"box","text":"lients investing through financial intermediaries that have","page_number":560,"box":{"x":502,"y":263,"width":398,"height":13}},{"id":"669a7e59-c99b-4090-b6ee-dad3e7f76d49","block_type":"box","text":"entered into an agreement with the Distributor to offer such s","page_number":560,"box":{"x":46,"y":279,"width":426,"height":13}},{"id":"a0445c11-f3d2-40b1-879b-af6c7a5376dd","block_type":"box","text":"hares on a platform that charges a transaction based sales","page_number":560,"box":{"x":473,"y":279,"width":399,"height":13}},{"id":"e652e724-1483-4b4c-b563-a3fffc8b82d7","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000.","page_number":560,"box":{"x":45,"y":294,"width":547,"height":13}},{"id":"e317a5b3-edc6-42dc-9a08-73f29aaf9e4f","block_type":"box","text":"The Fund may in its discretion waive or modify any minimum investment amount, may reject any order for any class of shares","page_number":560,"box":{"x":45,"y":316,"width":878,"height":13}},{"id":"053fecec-467b-47aa-9d45-afcefa666f90","block_type":"box","text":"and may suspend and resume the sale of shares of the Fund at any time.","page_number":560,"box":{"x":46,"y":331,"width":496,"height":13}},{"id":"45a2a338-55a9-4160-9049-0b2dc6851a59","block_type":"box","text":"Premier Shares of the Fund may be purchased by customers of broker-dealers and agents that have established a servicing","page_number":560,"box":{"x":45,"y":354,"width":842,"height":12}},{"id":"3b72fc35-c965-4a38-ac5f-7fa67190aa23","block_type":"box","text":"relationship with the Fund on behalf of their customers. 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Shareholders who are customers of such broker-de","page_number":560,"box":{"x":45,"y":430,"width":447,"height":13}},{"id":"b9a7e036-fa1b-48ec-b00b-809d24798a82","block_type":"box","text":"alers or agents should consult them for information regarding","page_number":560,"box":{"x":492,"y":430,"width":428,"height":13}},{"id":"ff965ee1-5aa3-4a64-a77d-98bd7b878d96","block_type":"box","text":"these fees and conditions.","page_number":560,"box":{"x":45,"y":445,"width":176,"height":10}},{"id":"f7f4c323-ba2d-48be-a5a3-b87e137c51f4","block_type":"box","text":"Only purchase orders submitted through the NSCC Fund/SERV trad","page_number":560,"box":{"x":46,"y":467,"width":477,"height":13}},{"id":"e97e835f-575a-4a08-855a-475341200d0e","block_type":"box","text":"ing platform will be accepted. 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The Fund","page_number":560,"box":{"x":511,"y":587,"width":428,"height":13}},{"id":"10c52123-c9e7-48be-80f2-770879d8c5c9","block_type":"box","text":"reserves the right to reduce or waive the minimums in certain cases.","page_number":560,"box":{"x":45,"y":603,"width":467,"height":12}},{"id":"e344bcf6-12ed-4e0f-8439-5b8113e5b429","block_type":"box","text":"Purchase of Shares of Circle Reserve","page_number":560,"box":{"x":45,"y":632,"width":264,"height":10}},{"id":"41814b52-1bd7-4035-a119-2a78537b5cd4","block_type":"box","text":"Institutional Shares","page_number":560,"box":{"x":45,"y":656,"width":141,"height":10}},{"id":"c1824b81-32f5-4dcc-a210-c76988c01e83","block_type":"box","text":"Purchase of Shares.","page_number":560,"box":{"x":45,"y":680,"width":133,"height":11}},{"id":"c51266aa-1df5-41ba-8296-d4c0156b5f62","block_type":"box","text":"Circle Reserve offers Institutional Shares as described in the Fund’s Prospectus. 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In order to use this right,","page_number":561,"box":{"x":495,"y":282,"width":436,"height":13}},{"id":"c520e3cf-5f80-47e4-9197-d087c1f96de1","block_type":"box","text":"the investor must alert BlackRock to the existence of any previously purchased shares. Although Investor A Shares of WeLEAF","page_number":561,"box":{"x":45,"y":297,"width":881,"height":13}},{"id":"3f9174f1-da4e-475b-a3c6-ab749d49e42c","block_type":"box","text":"and Summit Cash Reserves generally are not subject to a sales charge, an investor’s existing Investor A, Investor C, Institutional","page_number":561,"box":{"x":46,"y":312,"width":883,"height":13}},{"id":"b3eb9dea-1d10-4f6e-aa93-2fe1188030c7","block_type":"box","text":"and Premier Shares in WeLEAF and Summit Cash Reserves, as applicable, may be combined with the amount of an investor’s","page_number":561,"box":{"x":46,"y":328,"width":872,"height":12}},{"id":"f33f4348-9fe6-470e-8158-5d63739e5c4e","block_type":"box","text":"current purchase in determining whether an investor qualifies for","page_number":561,"box":{"x":45,"y":343,"width":451,"height":13}},{"id":"802567a7-18a5-4f4b-b45e-35505cca0149","block_type":"box","text":"a breakpoint and a reduced front-end sales charge. 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The Distributor has agreed to use","page_number":561,"box":{"x":460,"y":440,"width":431,"height":13}},{"id":"135f84d6-62c8-494d-aa17-d1203a77cfc9","block_type":"box","text":"appropriate efforts to effect sales of the shares, but it is not obligated to sell any particular amount of shares. The Distributor’s","page_number":561,"box":{"x":46,"y":456,"width":875,"height":12}},{"id":"1271c7f7-dda3-4933-afe4-2c69ac8d6af2","block_type":"box","text":"principal business address is 50 Hudson Yards, New York, NY 10001. The Distributor is an affiliate of BlackRock.","page_number":561,"box":{"x":45,"y":471,"width":803,"height":13}},{"id":"2f6a56c2-8105-45d0-a468-4a4ceb967685","block_type":"box","text":"Each Fund (with the exception of Circle Reserve, BlackRock Gov","page_number":561,"box":{"x":45,"y":493,"width":454,"height":13}},{"id":"abd6a611-c587-45f5-8c66-eb5a6c55a2f7","block_type":"box","text":"ernment Money Market Portfolio and BlackRock Government","page_number":561,"box":{"x":499,"y":493,"width":436,"height":13}},{"id":"8ac9a3f3-d5cf-41cc-9ec5-441a21e41804","block_type":"box","text":"Money Market V.I. Fund) has adopted a shareholder servicing plan and/or a distribution plan or plans (in the case of Summit","page_number":561,"box":{"x":45,"y":508,"width":872,"height":13}},{"id":"dc60c015-6856-47cb-927b-6cce40584ac3","block_type":"box","text":"Cash Reserves with respect to Investor C Shares only and in the case of WeLEAF with respect to Investor A, Investor C and","page_number":561,"box":{"x":46,"y":524,"width":856,"height":13}},{"id":"7aff8c7e-5590-4980-8376-05fe157f224f","block_type":"box","text":"Service Shares only) (each, a “Distribution Plan”) in compliance with Rule 12b-1 under the Investment Company Act. 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In approving a Distribution Plan in accordance","page_number":561,"box":{"x":46,"y":700,"width":896,"height":13}},{"id":"4c52a69a-4532-41b2-90fb-def473e04907","block_type":"box","text":"with Rule 12b-1, the non-interested Trustees concluded that there is reasonable likelihood that the Distribution Plan will benefit","page_number":561,"box":{"x":45,"y":716,"width":889,"height":12}},{"id":"b1ba6079-929e-4ff3-9e36-821a51aabbd8","block_type":"box","text":"the Fund and its related class of shareholders.","page_number":561,"box":{"x":45,"y":731,"width":315,"height":10}},{"id":"6c70936e-1900-4c30-abcf-25f9f40ce9d4","block_type":"box","text":"Each Distribution Plan provides that, so long as the Distributio","page_number":561,"box":{"x":45,"y":753,"width":437,"height":13}},{"id":"810eb11e-47c6-45eb-92da-ac2edf1502d6","block_type":"box","text":"n Plan remains in effect, the non-interested Trustees then in office","page_number":561,"box":{"x":483,"y":753,"width":453,"height":12}},{"id":"8a367c4f-2c12-49d5-b44c-9683a5db0dce","block_type":"box","text":"will select and nominate other non-interested Trustees. Each Distri","page_number":561,"box":{"x":45,"y":768,"width":462,"height":10}},{"id":"121f56a6-8c40-4337-acc1-158abffabf6f","block_type":"box","text":"bution Plan can be terminated at any time, without penalty, by","page_number":561,"box":{"x":508,"y":768,"width":435,"height":13}},{"id":"806cfa59-9107-4e84-856a-7cd0f217d80d","block_type":"box","text":"the vote of a majority of the non-interested Trustees or by the vot","page_number":561,"box":{"x":45,"y":784,"width":454,"height":13}},{"id":"74c14d53-2cdb-463c-92b4-a67803186e3c","block_type":"box","text":"e of the holders of a majority of the outstanding related class of","page_number":561,"box":{"x":500,"y":784,"width":440,"height":13}},{"id":"d34005f8-e950-4ccb-984d-43cc689bbd26","block_type":"box","text":"voting securities of a Fund. A Distribution Plan cannot be ame","page_number":561,"box":{"x":45,"y":799,"width":433,"height":13}},{"id":"15097c9d-5672-46a1-ac84-e5fad159c6e3","block_type":"box","text":"nded to increase materially the amount to be spent by the Fund","page_number":561,"box":{"x":479,"y":799,"width":438,"height":13}},{"id":"d85c1de9-f396-4c82-9f27-4c42f0c164e8","block_type":"box","text":"without the approval of the related class of shareholders. All mat","page_number":561,"box":{"x":45,"y":815,"width":451,"height":13}},{"id":"6283d93c-bb5e-438f-81a2-a635e7a726f3","block_type":"box","text":"erial amendments are required to be approved by the vote of","page_number":561,"box":{"x":497,"y":815,"width":420,"height":13}},{"id":"6b1511e9-2777-4ac2-8fe2-1dc9c5ae1c68","block_type":"box","text":"Trustees, including a majority of the non-interested Trustees wh","page_number":561,"box":{"x":45,"y":830,"width":444,"height":13}},{"id":"531372f5-e171-4021-8b7e-f14dd7b197ac","block_type":"box","text":"o have no direct or indirect financial interest in the Distribution","page_number":561,"box":{"x":490,"y":830,"width":440,"height":11}},{"id":"58677296-35ab-4977-9d61-14630b5fde68","block_type":"box","text":"Plan, cast in person at a meeting called for that purpose. Rule 12b-1 further requires that each Fund preserve copies of each","page_number":561,"box":{"x":45,"y":846,"width":856,"height":13}},{"id":"ee3f496d-96ad-4725-be60-d92f5e2f31b9","block_type":"box","text":"Distribution Plan and any report made pursuant to such plan for a period of not less than six years from the date of the","page_number":561,"box":{"x":45,"y":861,"width":829,"height":13}},{"id":"ad4b54e6-d655-4df1-b5f4-32c8726a8150","block_type":"box","text":"Distribution Plan or such report, the first two years of which should be stored in an easily accessible place.","page_number":561,"box":{"x":45,"y":877,"width":737,"height":13}},{"id":"2c7ca815-06c6-48ac-bd75-ff062050b293","block_type":"box","text":"II-44","page_number":561,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"7917b00a-9d11-4339-969e-8fc8161bfe16","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":561,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e8c65b5d-43e1-4c66-b16d-689c4f4c3f85","block_type":"box","text":"Among other things, each Distribution Plan provides that the Trustees will review quarterly reports of the shareholder servicing","page_number":562,"box":{"x":45,"y":79,"width":885,"height":13}},{"id":"fbbea04f-6da7-4d60-b3c1-c340412d66c8","block_type":"box","text":"and/or distribution expenditures paid to the Distributor. Information with respect to the distribution-related revenues and","page_number":562,"box":{"x":46,"y":94,"width":844,"height":13}},{"id":"b5ead50b-4e8f-4e98-bb98-24f2cc9902c9","block_type":"box","text":"expenses is presented to the Trustees for their consideration on a quarterly basis. Distribution-related expenses consist of financial","page_number":562,"box":{"x":46,"y":110,"width":899,"height":13}},{"id":"53012d03-447c-4097-9bfa-7826a6f69713","block_type":"box","text":"adviser compensation, branch office and regional operation center","page_number":562,"box":{"x":46,"y":125,"width":458,"height":13}},{"id":"735d7d97-d442-474c-a99f-537baa2e910c","block_type":"box","text":"selling and transaction processing expenses, advertising, sales","page_number":562,"box":{"x":510,"y":125,"width":422,"height":13}},{"id":"c22bd454-31dd-4781-9fb7-a7821b45d393","block_type":"box","text":"promotion and marketing expenses and interest expense. 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The maximum sales charge rule in the Conduct Rules of the Financial","page_number":562,"box":{"x":445,"y":233,"width":492,"height":13}},{"id":"d9445b10-057c-4ac3-a6ba-15ca7bbd0a3e","block_type":"box","text":"Industry Regulatory Authority (“FINRA”) imposes a limitation on certain asset-based sales charges. 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The aggregate amount of these payments may be","page_number":562,"box":{"x":46,"y":459,"width":905,"height":13}},{"id":"3e422e8e-e360-4135-be1d-c15abfc01d76","block_type":"box","text":"substantial.","page_number":562,"box":{"x":46,"y":474,"width":77,"height":10}},{"id":"dd5bb693-b6b3-4dd8-91d4-df7cee0f0ed6","block_type":"box","text":"Additional Payments by BlackRock","page_number":562,"box":{"x":45,"y":504,"width":258,"height":13}},{"id":"663325d4-b510-4f91-b769-3880793be15d","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”) may","page_number":562,"box":{"x":45,"y":530,"width":825,"height":12}},{"id":"1b5d417f-2451-4d94-8d6e-d31281bc90c9","block_type":"box","text":"compensate Service Organizations for the sale and distributio","page_number":562,"box":{"x":45,"y":545,"width":425,"height":13}},{"id":"777f1f60-27f5-4d7c-9bf6-17251a3d5846","block_type":"box","text":"n of shares of a Fund, for services to a Fund and its shareholders and/","page_number":562,"box":{"x":471,"y":545,"width":482,"height":12}},{"id":"551c9197-6767-4a6e-b5c2-d4b1a78bd934","block_type":"box","text":"or for data provision or technology support. 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These payments, which are not made pursuant to a Plan","page_number":562,"box":{"x":46,"y":592,"width":896,"height":12}},{"id":"4f470ec4-abb6-4871-9a29-05ea5a0afafa","block_type":"box","text":"or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":562,"box":{"x":46,"y":607,"width":540,"height":13}},{"id":"640982e0-9b40-42f8-9bf7-e7412cf80c5a","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees paid by a Fund to","page_number":562,"box":{"x":45,"y":630,"width":890,"height":13}},{"id":"4bc73e2d-317b-4cf3-bb6f-e609d06a6c63","block_type":"box","text":"BlackRock for various services, such as investment advisory services). 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Pursuant to applicable FINRA regulations, the details of cert","page_number":562,"box":{"x":46,"y":723,"width":477,"height":13}},{"id":"cce8c0a8-071a-4b20-9b77-0109db5b00b2","block_type":"box","text":"ain of these payments, including the Service Organizations","page_number":562,"box":{"x":524,"y":723,"width":403,"height":13}},{"id":"e9368c08-69b0-4619-9d61-f6c5efe8fa5e","block_type":"box","text":"receiving such payments in connection with the sale and distri","page_number":562,"box":{"x":45,"y":738,"width":429,"height":13}},{"id":"b851ecfa-597c-4d0a-8b39-49087483c7c1","block_type":"box","text":"bution of Fund shares, are required to be disclosed. 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Sales-based payments primarily create","page_number":562,"box":{"x":461,"y":877,"width":469,"height":13}},{"id":"ed2689a0-dba7-4c22-abf1-43bcdeef3d1f","block_type":"box","text":"II-45","page_number":562,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"34703d30-8c7d-46af-b6c7-2c08058d5caa","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":562,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b5286fa2-164c-4527-b88c-b3e54577bb9c","block_type":"box","text":"incentives to make new sales of shares of the Fund, and asset-based","page_number":563,"box":{"x":45,"y":79,"width":467,"height":12}},{"id":"2768acf7-1a9a-42f6-a8a3-a760c7d0bffc","block_type":"box","text":"payments primarily create incentives to retain previously sold","page_number":563,"box":{"x":516,"y":79,"width":425,"height":13}},{"id":"29a010eb-e8a2-4f0f-9537-c575b3c2bfed","block_type":"box","text":"shares of the Fund. 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These payments may take the","page_number":563,"box":{"x":490,"y":213,"width":452,"height":13}},{"id":"be72f3e7-059c-4d7a-9601-45208f6fa8fc","block_type":"box","text":"form of, among other things, “due diligence” payments for a S","page_number":563,"box":{"x":45,"y":229,"width":434,"height":12}},{"id":"cc0097ea-281d-414e-bf13-76e1d02991ca","block_type":"box","text":"ervice Organization’s examination of a Fund; payments for","page_number":563,"box":{"x":480,"y":229,"width":410,"height":12}},{"id":"53052a7c-d016-4f3d-b2d9-5dc481272946","block_type":"box","text":"providing extra employee training and information relating to a Fund; fees for access (in some cases on a preferential basis) to the","page_number":563,"box":{"x":45,"y":244,"width":898,"height":13}},{"id":"2874f054-3f70-4e58-8d5f-86fa8912e56d","block_type":"box","text":"Service Organization’s registered representatives, salespersons or other personnel, including at sales meetings and conferences;","page_number":563,"box":{"x":46,"y":260,"width":871,"height":12}},{"id":"ba7b70cc-69f4-4e80-aa73-09079ff750f0","block_type":"box","text":"“shelf space” payments for placing the Fund on the Service Organiz","page_number":563,"box":{"x":47,"y":275,"width":468,"height":13}},{"id":"e5ad0664-b6e8-41e4-b300-a0ccfb5919bc","block_type":"box","text":"ation’s platform(s); “listing” fees for the placing of the Fund","page_number":563,"box":{"x":516,"y":275,"width":417,"height":13}},{"id":"9af7d8e2-1f90-442b-b996-d9d1db4689d5","block_type":"box","text":"on a dealer’s list (which may be a preferred or recommended list) of mutual funds available for purchase by its customers or in","page_number":563,"box":{"x":46,"y":291,"width":876,"height":12}},{"id":"0eeb7c2f-f44d-42e2-9c71-64e34d4d9ace","block_type":"box","text":"certain sales programs from time to time; fees for providing a","page_number":563,"box":{"x":45,"y":306,"width":425,"height":13}},{"id":"4c6a55d5-474b-4db5-a833-5c7741a5006b","block_type":"box","text":"ssistance in promoting the sale of the Fund’s shares (which may","page_number":563,"box":{"x":471,"y":306,"width":440,"height":13}},{"id":"a2a829b4-156b-4478-a0c5-89fa9e013a27","block_type":"box","text":"include promotions in communications with the Service Organiza","page_number":563,"box":{"x":45,"y":322,"width":456,"height":12}},{"id":"8285ca29-e2ab-4093-a750-f744ea7e72dc","block_type":"box","text":"tion’s customers, registered representatives, salespersons and/or","page_number":563,"box":{"x":501,"y":322,"width":439,"height":12}},{"id":"909c6406-4526-4453-b427-9a28dbebd2d9","block_type":"box","text":"other personnel); payments for the sale of shares and/or the mai","page_number":563,"box":{"x":46,"y":337,"width":441,"height":13}},{"id":"d4738a08-9828-4d54-a754-340193ff76a6","block_type":"box","text":"ntenance of share balances; transaction fees (also referred to as","page_number":563,"box":{"x":488,"y":337,"width":434,"height":13}},{"id":"d835eb06-c77d-415d-9136-cec33b8858d1","block_type":"box","text":"“ticket charges”); and payments for infrastructure suppor","page_number":563,"box":{"x":47,"y":353,"width":398,"height":12}},{"id":"1c564db9-d76e-45ea-97b4-5e85b48d55b9","block_type":"box","text":"t. These payments normally will not exceed the sum of (a) 0.25% of","page_number":563,"box":{"x":446,"y":353,"width":473,"height":12}},{"id":"92f2a25d-a7e2-4d48-8902-5ffb528660db","block_type":"box","text":"such year’s Fund sales by that Service Organization, and (b) 0.21% of the assets attributable to that Service Organization invested","page_number":563,"box":{"x":46,"y":368,"width":900,"height":13}},{"id":"7fa09af7-d13f-4b57-be5e-fe851f88587c","block_type":"box","text":"in a Fund.","page_number":563,"box":{"x":45,"y":384,"width":70,"height":10}},{"id":"b947dc02-1b02-4303-9388-dfd12c708735","block_type":"box","text":"B. Shareholder Services","page_number":563,"box":{"x":79,"y":415,"width":168,"height":10}},{"id":"60d94f2d-bc4a-45a0-ab52-6aa49a21d49f","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their customers. In these situations, a Fund may","page_number":563,"box":{"x":45,"y":438,"width":894,"height":13}},{"id":"dc93ebea-58c0-4325-bdf6-e5c76d79336f","block_type":"box","text":"not maintain accounts in the name of the customers, and Service Organizations may perform some of the functions for these","page_number":563,"box":{"x":45,"y":453,"width":863,"height":13}},{"id":"93647407-c8bd-4571-a048-1d313eb87950","block_type":"box","text":"customers’ accounts that the transfer agent would have performe","page_number":563,"box":{"x":45,"y":469,"width":451,"height":13}},{"id":"9b70c311-daf2-40ad-9504-fc037c714810","block_type":"box","text":"d if the accounts had been in the customers’ names on the Fund’s","page_number":563,"box":{"x":497,"y":469,"width":450,"height":10}},{"id":"7bf62b9e-df84-443f-84e2-b8c098a2e813","block_type":"box","text":"books. 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Such charges may vary among Service Organizations but in all cases will be retained by the Service Organization and will","page_number":567,"box":{"x":45,"y":195,"width":904,"height":12}},{"id":"081a567b-0506-4b57-a03a-1fd897a420f0","block_type":"box","text":"not be remitted to a Fund or BlackRock.","page_number":567,"box":{"x":45,"y":210,"width":281,"height":10}},{"id":"2216f9db-c367-4a1d-bdf8-b580197ab8b4","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a Service Organization to","page_number":567,"box":{"x":46,"y":233,"width":902,"height":13}},{"id":"350bfe5b-65fc-4c85-b37f-91316d31276e","block_type":"box","text":"purchase or sell shares of a Fund and when considering which share class is most appropriate.","page_number":567,"box":{"x":45,"y":249,"width":651,"height":12}},{"id":"5250e5d8-8282-4cb1-924a-14dd477b8f69","block_type":"box","text":"You should consult with your","page_number":567,"box":{"x":701,"y":249,"width":208,"height":12}},{"id":"450acd81-90e1-43bf-b11f-22fc1bfb6b77","block_type":"box","text":"Service Organization, and review carefully any disclosure by the Service Organization, as to compensation received by it or its","page_number":567,"box":{"x":46,"y":264,"width":871,"height":13}},{"id":"6e7f20fb-8ab4-4308-80ff-f4fc7b41c575","block_type":"box","text":"affiliates and for more information about the payments described above.","page_number":567,"box":{"x":46,"y":280,"width":502,"height":12}},{"id":"b296c12c-acbb-4159-95f5-da73746ecbc7","block_type":"box","text":"R","page_number":567,"box":{"x":409,"y":311,"width":12,"height":9}},{"id":"dd2adbd0-3754-4ac1-9f1e-bec2bad8f43b","block_type":"box","text":"EDEMPTION OF","page_number":567,"box":{"x":421,"y":313,"width":109,"height":7}},{"id":"d0085b76-8866-4de5-a3cf-e27f5866119f","block_type":"box","text":"S","page_number":567,"box":{"x":536,"y":310,"width":7,"height":10}},{"id":"cb6b4faf-b484-4b98-b963-5adf965eb9f4","block_type":"box","text":"HARES","page_number":567,"box":{"x":544,"y":313,"width":45,"height":7}},{"id":"672dc5e7-54ba-4458-9a71-e2f513b8c6ec","block_type":"box","text":"Each Fund will normally redeem shares for cash upon receipt of a request in proper form, although each Fund retains the right to","page_number":567,"box":{"x":45,"y":335,"width":897,"height":13}},{"id":"1772ff1f-6fb0-40d2-929f-1c3de911c159","block_type":"box","text":"redeem some or all of its shares in-kind under unusual circumstan","page_number":567,"box":{"x":45,"y":351,"width":457,"height":10}},{"id":"977d4d1b-a0ad-4561-ba27-0e5d61b55517","block_type":"box","text":"ces, in order to protect the interests of remaining shareholders,","page_number":567,"box":{"x":502,"y":351,"width":433,"height":12}},{"id":"21b64643-90b3-4f8b-9b51-e14dca58c576","block_type":"box","text":"or to accommodate a request by a particular shareholder that does not adversely affect the interest of the remaining shareholders,","page_number":567,"box":{"x":46,"y":366,"width":896,"height":13}},{"id":"eca0af83-8621-4d39-a0aa-c485e0e77cdf","block_type":"box","text":"by delivery of securities and other assets selected from the Fund’s portfolio holdings at its discretion. In-kind payment means","page_number":567,"box":{"x":46,"y":382,"width":862,"height":12}},{"id":"75636234-0731-4590-9e44-6a2f8d1c48bd","block_type":"box","text":"payment will be made in portfolio securities and other assets rathe","page_number":567,"box":{"x":45,"y":397,"width":460,"height":13}},{"id":"05fe6fff-25d6-4b59-8e59-cce654abaa9e","block_type":"box","text":"r than cash. If this occurs, the redeeming shareholder might","page_number":567,"box":{"x":505,"y":397,"width":412,"height":13}},{"id":"0cd567ff-aa1c-4915-9150-f6068134cc54","block_type":"box","text":"incur brokerage or other transaction costs to convert the securities and other assets to cash. In an in-kind redemption, a pro rata","page_number":567,"box":{"x":45,"y":413,"width":889,"height":12}},{"id":"c0b72cda-0366-431d-b438-6853315f6093","block_type":"box","text":"portion of a Fund’s portfolio holdings will generally be distribut","page_number":567,"box":{"x":45,"y":428,"width":444,"height":13}},{"id":"7f68b44a-eb95-49b7-80ff-48a14a2cb207","block_type":"box","text":"ed to the redeeming shareholder. Each Fund has elected to be","page_number":567,"box":{"x":490,"y":428,"width":424,"height":13}},{"id":"2e2be98b-dbf3-4fcf-ba18-14b8803f6748","block_type":"box","text":"governed by Rule 18f-1 under the Investment Company Act so th","page_number":567,"box":{"x":45,"y":444,"width":455,"height":12}},{"id":"b93ffdd7-6ab8-4bae-8454-91d322f9fff8","block_type":"box","text":"at the Fund is obligated to redeem its shares solely in cash up to","page_number":567,"box":{"x":501,"y":444,"width":440,"height":12}},{"id":"4df8e537-76a9-4731-9cca-fe77a9fc93e4","block_type":"box","text":"the lesser of $250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. The redemption price is the","page_number":567,"box":{"x":45,"y":459,"width":890,"height":13}},{"id":"0ccb2c35-f18c-4ef8-bc3f-59152e27b3d7","block_type":"box","text":"NAV per share next determined after the initial receipt of proper notice of redemption.","page_number":567,"box":{"x":45,"y":475,"width":602,"height":12}},{"id":"a9e1a150-dfa0-47ad-b310-43d3d55bb233","block_type":"box","text":"The value of the shareholder’s investment at the time of redemption may be more or less than his or her cost, depending on the","page_number":567,"box":{"x":45,"y":498,"width":880,"height":12}},{"id":"0cd9d040-bed4-4864-a58d-35013d6eeeef","block_type":"box","text":"market value of the securities held by the Fund at such time and","page_number":567,"box":{"x":45,"y":513,"width":443,"height":13}},{"id":"a4b5a96f-eba2-4c75-91cb-1959061bfb8d","block_type":"box","text":"income earned. The redemption price will be reduced by any","page_number":567,"box":{"x":493,"y":513,"width":420,"height":13}},{"id":"1f59ed07-b037-4514-b00e-634ad3def5d8","block_type":"box","text":"applicable CDSC.","page_number":567,"box":{"x":46,"y":529,"width":122,"height":12}},{"id":"28a8d38b-dd63-4cf9-b54d-0931b38b0854","block_type":"box","text":"If notice is received by the Fund’s transfer agent or certain financial","page_number":567,"box":{"x":45,"y":551,"width":466,"height":13}},{"id":"0e41e092-75fb-4393-a4e3-ae5fbdadbfb3","block_type":"box","text":"intermediaries, as applicable, prior to the applicable cut-off","page_number":567,"box":{"x":516,"y":551,"width":411,"height":13}},{"id":"bd4a240e-fdef-4db8-9045-38fb8d17ffa7","block_type":"box","text":"time on that day, the redemption will be effective on such day. If","page_number":567,"box":{"x":45,"y":567,"width":449,"height":13}},{"id":"34f17660-d4b8-4b9c-8851-2ef3a49f4f98","block_type":"box","text":"the notice is received after the applicable cut-off time, the","page_number":567,"box":{"x":498,"y":567,"width":396,"height":13}},{"id":"958608b3-d38d-4687-b556-4fedbaa760a9","block_type":"box","text":"redemption will be effective on the next business day and, unless otherwise provided in the Fund’s Prospectus, payment will be","page_number":567,"box":{"x":45,"y":582,"width":878,"height":13}},{"id":"313d533b-9a7f-4b89-a249-795e75bc138e","block_type":"box","text":"made on the second business day after receipt of the notice.","page_number":567,"box":{"x":45,"y":598,"width":411,"height":13}},{"id":"9a6de7fa-4b55-43ff-a1d2-1b60783c36d0","block_type":"box","text":"Summit Cash Reserves — Redemption of Shares","page_number":567,"box":{"x":46,"y":628,"width":349,"height":13}},{"id":"d87773b1-4057-4c31-981f-f5960ffdace7","block_type":"box","text":"Redemptions may be made in the manner and amounts described in Summit Cash Reserves’ Prospectuses. Signatures, when","page_number":567,"box":{"x":46,"y":653,"width":857,"height":13}},{"id":"39f2f6cf-0a6d-4453-92bf-9c6f89a4fba3","block_type":"box","text":"required, must conform exactly to the account registration. If (i) the proceeds of the redemption would exceed $250,000 for a","page_number":567,"box":{"x":45,"y":669,"width":873,"height":13}},{"id":"b0e4729f-6897-4112-b449-0cae6e37a60e","block_type":"box","text":"redemption by wire or ACH, or $100,000 for a redemption by check","page_number":567,"box":{"x":45,"y":684,"width":480,"height":13}},{"id":"f20b5b29-9d3f-4919-bf9f-5ada94e1744b","block_type":"box","text":", (ii) the Fund does not have verified banking information on","page_number":567,"box":{"x":526,"y":684,"width":421,"height":13}},{"id":"5e405fd4-ac69-4924-a446-b6fc1141dd9a","block_type":"box","text":"file, (iii) the proceeds are not to be paid to the record owner at the record address, or (iv) the shareholder is a corporation,","page_number":567,"box":{"x":45,"y":700,"width":845,"height":13}},{"id":"b00dbc9a-1423-42ad-8251-5dc469494a00","block_type":"box","text":"partnership, trust or fiduciary, signature(s) must","page_number":567,"box":{"x":45,"y":715,"width":334,"height":13}},{"id":"11209933-2641-4998-9aad-4e26c2d1012e","block_type":"box","text":"be guaranteed by any eligible guarantor institution.","page_number":567,"box":{"x":384,"y":715,"width":353,"height":13}},{"id":"0c2ef554-335f-4c76-880a-194960ffdf54","block_type":"box","text":"Generally, a properly signed written request with any required signature guarantee is all that is required for a redemption. In some","page_number":567,"box":{"x":46,"y":738,"width":903,"height":13}},{"id":"0a5fd1b7-ec8c-44c9-ad15-b3afc84a2454","block_type":"box","text":"cases, however, other documents may be necessary. Additional documentary evidence of authority is required by BNY Mellon","page_number":567,"box":{"x":45,"y":754,"width":877,"height":13}},{"id":"4ee9cffe-cb31-4cab-88d3-f0d256dc7e2e","block_type":"box","text":"Investment Servicing (US) Inc. in the event redemption is request","page_number":567,"box":{"x":45,"y":769,"width":446,"height":13}},{"id":"fccfafe8-29a0-44cc-bac8-36583a5a8a6e","block_type":"box","text":"ed by a corporation, partnership, trust, fiduciary, executor or","page_number":567,"box":{"x":492,"y":769,"width":424,"height":13}},{"id":"7ce530bb-c30c-4be7-87ef-cef278303afb","block_type":"box","text":"administrator. See “Signature Guarantee” below.","page_number":567,"box":{"x":46,"y":785,"width":340,"height":13}},{"id":"c10b585c-0f59-4763-9605-083e558da0bb","block_type":"box","text":"Note on Low Balance Accounts","page_number":567,"box":{"x":45,"y":808,"width":222,"height":10}},{"id":"04801956-32ce-4f3b-93c6-81e46c89ebfb","block_type":"box","text":". Because of the high cost of maintaining smaller shareholder accounts, BlackRock has set a","page_number":567,"box":{"x":269,"y":808,"width":633,"height":13}},{"id":"090a3cfe-f7af-4492-9680-a15e1bfbcf96","block_type":"box","text":"minimum balance of $500 in each Fund position you hold within your account (the “Fund Minimum”), and may redeem the","page_number":567,"box":{"x":45,"y":823,"width":869,"height":13}},{"id":"ee04e7b1-deea-4bcd-bb15-7f4e916e223c","block_type":"box","text":"shares in your account if the NAV of those shares in your account falls below $500 for any reason, including market fluctuation.","page_number":567,"box":{"x":46,"y":838,"width":893,"height":14}},{"id":"c85fb73e-0b84-433d-a13f-2a988a00f8d5","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 involuntary","page_number":567,"box":{"x":45,"y":862,"width":850,"height":12}},{"id":"c00736c1-32df-4d2c-84f0-62100af51625","block_type":"box","text":"redemption. This notification will provide you with a 90 calendar day period to make an additional investment in order to bring","page_number":567,"box":{"x":45,"y":877,"width":891,"height":13}},{"id":"4a4af93e-cf29-4539-a4b8-8b354584687f","block_type":"box","text":"II-50","page_number":567,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"c3a5f854-17a4-438b-9339-6b00e6e55ef0","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":567,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f62b4465-26bc-4e3b-b7d7-ce66e562149a","block_type":"box","text":"the value of your account to at least $500 before the Fund makes an involuntary redemption. This involuntary redemption will","page_number":568,"box":{"x":45,"y":78,"width":881,"height":14}},{"id":"295a56bc-498f-49f2-9a24-ff708256c331","block_type":"box","text":"not charge any deferred sales charge, and may not apply to accounts of certain employer-sponsored retirement plans (not","page_number":568,"box":{"x":45,"y":94,"width":841,"height":13}},{"id":"eabf3e34-7a8f-4d7d-bdbc-ba8023dd971e","block_type":"box","text":"including IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your financial intermediary.","page_number":568,"box":{"x":45,"y":110,"width":874,"height":13}},{"id":"966adb65-cfd2-4564-a16c-c50ce2e9ea57","block_type":"box","text":"Payment of Redemption Proceeds","page_number":568,"box":{"x":45,"y":133,"width":234,"height":13}},{"id":"83d288c2-1d9e-4933-9f45-00e1a205b06e","block_type":"box","text":". The Fund may suspend the right of redemption or postpone the date of payment upon","page_number":568,"box":{"x":280,"y":133,"width":607,"height":13}},{"id":"028be755-790a-4220-a11c-c05bfed562a0","block_type":"box","text":"redemption for such periods as are permitted under the Investment Company Act, and may redeem shares involuntarily or make","page_number":568,"box":{"x":45,"y":148,"width":891,"height":13}},{"id":"f1e602f7-0a53-470c-a378-b1ab47238e62","block_type":"box","text":"payment for redemption in securities or other property when d","page_number":568,"box":{"x":45,"y":164,"width":435,"height":13}},{"id":"44279227-eacc-443b-9d53-5c8e40e6b3e1","block_type":"box","text":"etermined appropriate in light of the Fund’s responsibilities under","page_number":568,"box":{"x":481,"y":164,"width":455,"height":13}},{"id":"abf5df7d-b0df-4045-9ce7-28cf65be5a99","block_type":"box","text":"the Investment Company Act.","page_number":568,"box":{"x":45,"y":179,"width":207,"height":13}},{"id":"c322200c-4bd5-4b3a-a9a4-7ecf52a757d6","block_type":"box","text":"The Fund reserves the right, if conditions exist which make cash p","page_number":568,"box":{"x":45,"y":202,"width":458,"height":13}},{"id":"daf34380-52e3-43b9-a80a-096be348e727","block_type":"box","text":"ayments undesirable, to honor any request for redemption or","page_number":568,"box":{"x":504,"y":202,"width":423,"height":13}},{"id":"d2bb0742-0ca0-4ee4-97ed-78956e6cd15a","block_type":"box","text":"repurchase of the Fund’s shares by making payment in whole or in part in securities chosen by the Fund and valued in the same","page_number":568,"box":{"x":45,"y":218,"width":884,"height":13}},{"id":"88c36e44-ac85-482e-b922-449ca6da763a","block_type":"box","text":"way as they would be valued for purposes of computing the Fund’s NAV. If payment is made in securities, a shareholder may","page_number":568,"box":{"x":45,"y":233,"width":872,"height":13}},{"id":"4c387416-3182-448e-b359-b37c7aafda1e","block_type":"box","text":"incur transaction costs in converting these securities into cash. The Fund has elected, however, to be governed by Rule 18f-1 under","page_number":568,"box":{"x":45,"y":249,"width":906,"height":13}},{"id":"bd45c9de-3d75-4636-afa9-ca0624838d18","block_type":"box","text":"the Investment Company Act so that the Fund is obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1%","page_number":568,"box":{"x":45,"y":264,"width":890,"height":13}},{"id":"22b803b9-cec8-4590-8cb8-132c4c79acaa","block_type":"box","text":"of its NAV during any 90-day period for any one shareholder of the Fund.","page_number":568,"box":{"x":46,"y":280,"width":515,"height":13}},{"id":"d43a06dd-1c54-434c-9b82-de4a9cceba39","block_type":"box","text":"Under the Investment Company Act, the Fund may suspend the right to redemption or postpone the date of payment upon","page_number":568,"box":{"x":45,"y":303,"width":853,"height":13}},{"id":"e3d96f12-e12e-4241-ab13-0619812f4e0d","block_type":"box","text":"redemption for any period during which the NYSE is closed (oth","page_number":568,"box":{"x":45,"y":318,"width":449,"height":13}},{"id":"96a2b8e1-586d-458c-beb0-a83c94477c8f","block_type":"box","text":"er than customary weekend and holiday closings), or during","page_number":568,"box":{"x":495,"y":318,"width":416,"height":13}},{"id":"b736c378-cf2e-4510-a7d0-5912c0a42b82","block_type":"box","text":"which trading on the NYSE is restricted, or during which (as determined by the SEC by rule or regulation) an emergency exists as","page_number":568,"box":{"x":45,"y":334,"width":898,"height":13}},{"id":"00819b01-95ad-439a-8683-74a02d899cc0","block_type":"box","text":"a result of which disposal or valuation of portfolio securities is not reasonably practicable, or for such other periods as the SEC","page_number":568,"box":{"x":46,"y":349,"width":879,"height":13}},{"id":"c011f200-3b23-4909-9b89-d2481602ecb6","block_type":"box","text":"may permit. (The Fund may also suspend or postpone the recordation of the transfer of its shares upon the occurrence of any of","page_number":568,"box":{"x":45,"y":365,"width":888,"height":13}},{"id":"24de6244-092f-45a1-b0f9-42ee74ffbd8b","block_type":"box","text":"the foregoing conditions.)","page_number":568,"box":{"x":45,"y":380,"width":178,"height":13}},{"id":"27cb10ed-e748-46cf-a0d2-6e12ba35d311","block_type":"box","text":"The Fund may redeem shares involuntarily to reimburse the Fund fo","page_number":568,"box":{"x":45,"y":403,"width":474,"height":13}},{"id":"266e856d-24f0-4034-8e08-9311056fa11f","block_type":"box","text":"r any loss sustained by reason of the failure of a shareholder","page_number":568,"box":{"x":520,"y":403,"width":416,"height":13}},{"id":"351d1e1b-e60d-4707-b626-276220282bc6","block_type":"box","text":"to make full payment for shares purchased by the shareholder or t","page_number":568,"box":{"x":45,"y":419,"width":459,"height":13}},{"id":"907c9b97-950a-46b9-b690-9014263e78fc","block_type":"box","text":"o collect any charge relating to a transaction effected for the","page_number":568,"box":{"x":504,"y":419,"width":416,"height":13}},{"id":"cde9449b-27a5-4d43-a6c3-be0e5a5aa04a","block_type":"box","text":"benefit of a shareholder. The Fund reserves the express right to redeem shares of the Fund involuntarily at any time if the Board of","page_number":568,"box":{"x":46,"y":434,"width":904,"height":13}},{"id":"4be535c8-4e9f-42a2-9218-5d51b751682b","block_type":"box","text":"Trustees determines, in its sole discretion, that failure to do so ma","page_number":568,"box":{"x":45,"y":450,"width":455,"height":12}},{"id":"6354b355-9c34-480e-ba79-ef6ffcdc915c","block_type":"box","text":"y have adverse consequences to the holders of shares in the Fund.","page_number":568,"box":{"x":501,"y":450,"width":452,"height":13}},{"id":"97430b6b-0fcd-4370-bee1-8aaff259fcc6","block_type":"box","text":"Upon such redemption the holders of shares so redeemed shal","page_number":568,"box":{"x":45,"y":465,"width":428,"height":13}},{"id":"92317f77-719b-4a9c-86e4-d64c47b64fcd","block_type":"box","text":"l have no further right with respect thereto other than to receive","page_number":568,"box":{"x":474,"y":465,"width":442,"height":13}},{"id":"8ff16c75-c032-4751-957c-bf00ae0dbf4c","block_type":"box","text":"payment of the redemption price.","page_number":568,"box":{"x":45,"y":481,"width":231,"height":13}},{"id":"37a015b7-a25c-4131-bfc5-acfec1ad16e7","block_type":"box","text":"Signature Guarantee","page_number":568,"box":{"x":46,"y":504,"width":141,"height":13}},{"id":"3bb0952f-56dd-4593-98dd-a5581ce5bec3","block_type":"box","text":". A signature guarantee is designed to protect the shareholders and the Fund against fraudulent transactions","page_number":568,"box":{"x":189,"y":504,"width":744,"height":13}},{"id":"d8af93df-35ec-47f8-b7b8-7132bd6d2bef","block_type":"box","text":"by unauthorized persons. A signature guarantee may be obtai","page_number":568,"box":{"x":46,"y":519,"width":426,"height":13}},{"id":"58e09ac1-c701-4d06-89db-fba87f1fe2ad","block_type":"box","text":"ned from a domestic bank or trust company, recognized broker,","page_number":568,"box":{"x":472,"y":519,"width":444,"height":13}},{"id":"b5887380-b182-48ff-92db-d02185079ba1","block_type":"box","text":"dealer, clearing agency, savings association who are participants in a medallion program by the Securities Transfer Association,","page_number":568,"box":{"x":46,"y":535,"width":881,"height":13}},{"id":"2e142e8f-f517-4872-9dc2-6fcb0554c8bc","block_type":"box","text":"credit unions, national securities exchanges and registered secur","page_number":568,"box":{"x":45,"y":550,"width":441,"height":13}},{"id":"cfacabeb-8bc9-4bcd-9a23-bce753f68a86","block_type":"box","text":"ities associations. The three recognized medallion programs are","page_number":568,"box":{"x":486,"y":550,"width":439,"height":13}},{"id":"222a3c3f-754b-451f-9673-ae081d010624","block_type":"box","text":"Securities Transfer Agent Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) and New York Stock","page_number":568,"box":{"x":46,"y":566,"width":862,"height":13}},{"id":"123ae8cd-8112-46c2-80f0-e4c290bc2e2d","block_type":"box","text":"Exchange, Inc. Medallion Signature Program (MSP). Signature Guarantees which are not a part of these programs will not be","page_number":568,"box":{"x":45,"y":581,"width":871,"height":13}},{"id":"daa9b41f-922b-4658-8454-d60dbfb90041","block_type":"box","text":"accepted. Please note that a notary public stamp or seal is not acceptable.","page_number":568,"box":{"x":46,"y":597,"width":506,"height":13}},{"id":"f077b13d-a54e-4194-926f-ef9008323cd1","block_type":"box","text":"WeLEAF — Redemption of Shares","page_number":568,"box":{"x":45,"y":627,"width":252,"height":13}},{"id":"d419b406-9dfa-417a-86e1-7905ba43ace3","block_type":"box","text":"Redemptions may be made in the manner and amounts described in W","page_number":568,"box":{"x":46,"y":653,"width":492,"height":13}},{"id":"69a490f8-5e62-4ef2-a272-fbc6bb53bad5","block_type":"box","text":"eLEAF’s Prospectuses. Signatures, when required, must","page_number":568,"box":{"x":539,"y":653,"width":382,"height":13}},{"id":"505dee4e-0d00-4d71-b9f8-c4df2bf61362","block_type":"box","text":"conform exactly to the account registration. If (i) the proceed","page_number":568,"box":{"x":45,"y":668,"width":424,"height":13}},{"id":"80a8209d-ac25-4a79-900f-743a23be7516","block_type":"box","text":"s of the redemption would exceed $250,000 for a redemption by wire","page_number":568,"box":{"x":469,"y":668,"width":484,"height":13}},{"id":"2bb69e77-9a7a-42f8-94ac-52dbe4e6eef1","block_type":"box","text":"or ACH, or $100,000 for a redemption by check, (ii) the Fund does","page_number":568,"box":{"x":46,"y":684,"width":468,"height":13}},{"id":"84ad8224-6138-4adb-b0e2-2c87906ed7c8","block_type":"box","text":"not have verified banking information on file, (iii) the","page_number":568,"box":{"x":520,"y":684,"width":370,"height":13}},{"id":"808627f3-8397-4226-a1bc-83c32079dc8f","block_type":"box","text":"proceeds are not to be paid to the record owner at the record address, or (iv) the shareholder is a corporation, partnership, trust or","page_number":568,"box":{"x":45,"y":699,"width":906,"height":13}},{"id":"cb99cc36-d695-4b25-98ec-a6abb0802441","block_type":"box","text":"fiduciary, signature(s) must be guaranteed by any eligible guarantor institution.","page_number":568,"box":{"x":45,"y":715,"width":548,"height":13}},{"id":"53132927-7a60-438c-a246-370deb218dd5","block_type":"box","text":"Generally, a properly signed written request with any required signature guarantee is all that is required for a redemption. In some","page_number":568,"box":{"x":46,"y":738,"width":903,"height":13}},{"id":"96f63eae-f52b-4e19-9d68-b7c2f6b372e8","block_type":"box","text":"cases, however, other documents may be necessary. Additional documentary evidence of authority is required by BNY Mellon","page_number":568,"box":{"x":45,"y":753,"width":877,"height":13}},{"id":"2168f6ad-2171-41b2-bce2-7293f055074a","block_type":"box","text":"Investment Servicing (US) Inc. in the event redemption is request","page_number":568,"box":{"x":45,"y":769,"width":446,"height":13}},{"id":"6b8fc2ea-1380-4b83-a741-9924013b4753","block_type":"box","text":"ed by a corporation, partnership, trust, fiduciary, executor or","page_number":568,"box":{"x":492,"y":769,"width":424,"height":13}},{"id":"c7d4a069-9ee1-4f21-a5ea-f3b3f5bbfc27","block_type":"box","text":"administrator. See “Signature Guarantee” below.","page_number":568,"box":{"x":46,"y":784,"width":340,"height":13}},{"id":"e4f0bddc-4971-4939-b209-94033aba3011","block_type":"box","text":"Note on Low Balance Accounts.","page_number":568,"box":{"x":45,"y":807,"width":226,"height":10}},{"id":"9d8cbccb-07d9-4acd-9f86-805248490060","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts, BlackRock has set a","page_number":568,"box":{"x":277,"y":807,"width":625,"height":13}},{"id":"d52b625f-4204-4cf8-ba49-c8afaa44184e","block_type":"box","text":"minimum balance of $500 in each Fund position you hold within your account (“Fund Minimum”), and may redeem the shares in","page_number":568,"box":{"x":45,"y":823,"width":909,"height":13}},{"id":"a7681c1d-5c34-4b1c-9ba0-ac45f7ccef2a","block_type":"box","text":"your account if the NAV of those shares in your account falls below $500 for any reason, including market fluctuation.","page_number":568,"box":{"x":45,"y":838,"width":829,"height":13}},{"id":"d3e275e3-dfd9-4bbc-8bac-1185e5fecb85","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 involuntary","page_number":568,"box":{"x":45,"y":861,"width":850,"height":13}},{"id":"f2b18657-4528-4593-b15b-4e2836639ca6","block_type":"box","text":"redemption. This notification will provide you with a 90 calendar day period to make an additional investment in order to bring","page_number":568,"box":{"x":45,"y":877,"width":891,"height":13}},{"id":"a46923cc-97d5-47cf-8244-e3e574bd99cc","block_type":"box","text":"II-51","page_number":568,"box":{"x":482,"y":917,"width":33,"height":9}},{"id":"616ddfae-c8bf-4e13-9c52-d928590d7051","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":568,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"77be3bc1-9b38-46da-9696-0a7378ad75b1","block_type":"box","text":"the value of your account to at least $500 before the Fund makes an involuntary redemption. This involuntary redemption will","page_number":569,"box":{"x":45,"y":78,"width":881,"height":14}},{"id":"11bbe9e9-40fd-4e2e-8a62-7497e925c302","block_type":"box","text":"not charge any deferred sales charge, and may not apply to accounts of certain employer-sponsored retirement plans (not","page_number":569,"box":{"x":45,"y":94,"width":841,"height":13}},{"id":"3d77fe1c-63d5-45b0-8e1a-9499a26b196c","block_type":"box","text":"including IRAs), qualified state tuition plan (529 Plan) accounts, and select fee-based programs at your financial intermediary.","page_number":569,"box":{"x":45,"y":110,"width":874,"height":13}},{"id":"184cb91e-b811-4fcb-a43b-4d985de58161","block_type":"box","text":"Service Shares","page_number":569,"box":{"x":45,"y":139,"width":101,"height":10}},{"id":"5e65b049-13e1-4989-9a66-c45298f95260","block_type":"box","text":"Redemption of Shares.","page_number":569,"box":{"x":45,"y":164,"width":157,"height":13}},{"id":"3539b7b6-64bc-4065-bf37-5e0eaeb5f30b","block_type":"box","text":"WeLEAF may redeem Service Shares if the account balance drops below the required minimum initial","page_number":569,"box":{"x":207,"y":164,"width":706,"height":13}},{"id":"592d5242-3571-4709-9eef-e019f71a942d","block_type":"box","text":"investment as the result of redemption requests and the shareholder does not increase the balance to at least the required minimum","page_number":569,"box":{"x":45,"y":179,"width":907,"height":13}},{"id":"ece8072d-d2ae-47ed-ba55-24e84636c4e6","block_type":"box","text":"initial investment upon thirty days’ written notice. If a customer has agreed with an institution to maintain a minimum balance in","page_number":569,"box":{"x":45,"y":195,"width":899,"height":13}},{"id":"d64509f3-947d-42b1-b241-e8a0ed7d54b1","block_type":"box","text":"his or her account with the institution, and the balance in the account falls below that minimum, the customer may be obligated to","page_number":569,"box":{"x":45,"y":210,"width":907,"height":13}},{"id":"c8e651ea-41b1-4c04-93c9-5afc90ab77a3","block_type":"box","text":"redeem all or part of his or her shares in the Fund to the extent necessary to maintain the minimum balance required.","page_number":569,"box":{"x":45,"y":226,"width":812,"height":13}},{"id":"d0f7c15c-3904-4782-b348-302be9c16840","block_type":"box","text":"The following is applicable only to persons who were shareholders of an investment portfolio of Compass Capital Group of","page_number":569,"box":{"x":45,"y":248,"width":903,"height":13}},{"id":"0cb6f580-e9f5-4f21-86b2-38a7903e9371","block_type":"box","text":"Funds at the time of the Trust’s combination with The PNC Fund in 1996:","page_number":569,"box":{"x":45,"y":264,"width":544,"height":10}},{"id":"28445d1e-e3a9-433c-91a5-d8d3ecc3ff7c","block_type":"box","text":"Persons who were shareholders of an investment portfolio of Compass Capital Group of Funds at the time of the portfolio’s","page_number":569,"box":{"x":45,"y":286,"width":861,"height":13}},{"id":"4fb7c985-cb7f-4a6e-b951-8e8b95a7ff9a","block_type":"box","text":"combination with The PNC Fund may also purchase and redeem Service Shares of the same Fund and for the same account in","page_number":569,"box":{"x":45,"y":302,"width":876,"height":12}},{"id":"46220b74-6f96-41a1-9f2f-61325b381801","block_type":"box","text":"which they held shares on that date through the procedures described in this section.","page_number":569,"box":{"x":45,"y":317,"width":585,"height":13}},{"id":"f79caac0-b5a3-47ee-9332-a4e82eded4e4","block_type":"box","text":"Payment of Redemption Proceeds.","page_number":569,"box":{"x":45,"y":340,"width":238,"height":12}},{"id":"4fb52c4a-3693-4a68-a2b9-7a3658f5c7fb","block_type":"box","text":"The Fund may suspend the right of redemption or postpone the date of payment upon","page_number":569,"box":{"x":288,"y":340,"width":599,"height":12}},{"id":"64cd724d-062c-4860-a51f-d6d38011b89a","block_type":"box","text":"redemption for such periods as are permitted under the Investment Company Act, and may redeem shares involuntarily or make","page_number":569,"box":{"x":45,"y":355,"width":891,"height":13}},{"id":"55f8b3e1-862b-490a-b1cd-1b998b1f9087","block_type":"box","text":"payment for redemption in securities or other property when d","page_number":569,"box":{"x":45,"y":371,"width":435,"height":12}},{"id":"989f6370-e576-44ec-bd90-ae373b015f0d","block_type":"box","text":"etermined appropriate in light of the Fund’s responsibilities under","page_number":569,"box":{"x":481,"y":371,"width":455,"height":12}},{"id":"a5f44d70-ac31-48e8-92da-7323ca6ae16a","block_type":"box","text":"the Investment Company Act.","page_number":569,"box":{"x":45,"y":386,"width":207,"height":13}},{"id":"eefd7358-9c74-4dab-9cc5-e1b4e8092512","block_type":"box","text":"The Fund reserves the right, if conditions exist which make cash p","page_number":569,"box":{"x":45,"y":408,"width":458,"height":13}},{"id":"0a1e07e1-c3e5-40cc-9b41-0bd39a21799f","block_type":"box","text":"ayments undesirable, to honor any request for redemption or","page_number":569,"box":{"x":504,"y":408,"width":423,"height":13}},{"id":"23e3c89b-9403-4b7a-b5e4-063cfa1d516e","block_type":"box","text":"repurchase of the Fund’s shares by making payment in whole or in part in securities chosen by the Fund and valued in the same","page_number":569,"box":{"x":45,"y":424,"width":884,"height":13}},{"id":"a5a5983e-8005-47e9-b177-6fddefd08444","block_type":"box","text":"way as they would be valued for purposes of computing the Fund’s NAV. If payment is made in securities, a shareholder may","page_number":569,"box":{"x":45,"y":440,"width":872,"height":12}},{"id":"de36913b-6786-41ad-8caf-f5a4f62ad1af","block_type":"box","text":"incur transaction costs in converting these securities into cash. The Fund has elected, however, to be governed by Rule 18f-1 under","page_number":569,"box":{"x":45,"y":455,"width":906,"height":13}},{"id":"b4ad9f39-d39e-46a8-8166-73119e51bb6a","block_type":"box","text":"the Investment Company Act so that the Fund is obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1%","page_number":569,"box":{"x":45,"y":470,"width":890,"height":13}},{"id":"61ddbfe1-266c-4dcc-af51-d94fc6d96dca","block_type":"box","text":"of its NAV during any 90-day period for any one shareholder of the Fund.","page_number":569,"box":{"x":46,"y":486,"width":515,"height":13}},{"id":"38dab599-6f72-4fd4-a187-a0c431189476","block_type":"box","text":"The Board of the Trust, or its delegate, will be permitted to impose a discretionary liquidity fee on redemptions from WeLEAF (up","page_number":569,"box":{"x":45,"y":508,"width":905,"height":13}},{"id":"6db30d62-720b-4fb3-a142-0375b888e5f2","block_type":"box","text":"to 2%). Please see the Fund’s Prospectus for additional information about discretionary liquidity fees.","page_number":569,"box":{"x":45,"y":524,"width":704,"height":13}},{"id":"e38c4a7e-feee-48bb-acfd-a4470d515c7b","block_type":"box","text":"Under the Investment Company Act, the Fund may suspend the right to redemption or postpone the date of payment upon","page_number":569,"box":{"x":45,"y":546,"width":853,"height":13}},{"id":"6abe1532-15f5-4c5f-8211-9684e074b4b0","block_type":"box","text":"redemption for any period during which the NYSE is closed (oth","page_number":569,"box":{"x":45,"y":562,"width":449,"height":13}},{"id":"37e29e26-8bd6-4faa-8e32-1dc4a118b684","block_type":"box","text":"er than customary weekend and holiday closings), or during","page_number":569,"box":{"x":495,"y":562,"width":416,"height":13}},{"id":"da1e38d5-0c3c-4831-b97b-4e0763ed0f8e","block_type":"box","text":"which trading on the NYSE is restricted, or during which (as determined by the SEC by rule or regulation) an emergency exists as","page_number":569,"box":{"x":45,"y":577,"width":898,"height":13}},{"id":"c427cae2-5e6f-4a9b-8869-8befa6847b1e","block_type":"box","text":"a result of which disposal or valuation or portfolio securities is not reasonably practicable, or for such other periods as the SEC","page_number":569,"box":{"x":46,"y":593,"width":880,"height":13}},{"id":"8af11988-6b4c-4199-8fc3-7112044ef740","block_type":"box","text":"may permit. (The Fund may also suspend or postpone the recordation of the transfer of its shares upon the occurrence of any of","page_number":569,"box":{"x":45,"y":608,"width":888,"height":13}},{"id":"8f39cb79-2722-411f-b91a-4db6b483f8ed","block_type":"box","text":"the foregoing conditions.)","page_number":569,"box":{"x":45,"y":624,"width":178,"height":13}},{"id":"683d2ee6-8ad5-43cf-91f3-c93a2739c838","block_type":"box","text":"The Fund may redeem shares involuntarily to reimburse the Fund fo","page_number":569,"box":{"x":45,"y":646,"width":474,"height":13}},{"id":"9f76daa4-9405-46cb-a7b9-344aa6a51357","block_type":"box","text":"r any loss sustained by reason of the failure of a shareholder","page_number":569,"box":{"x":520,"y":646,"width":416,"height":13}},{"id":"b0ae8199-2bd9-47fe-abca-7c02d5b8f3d1","block_type":"box","text":"to make full payment for shares purchased by the shareholder or t","page_number":569,"box":{"x":45,"y":662,"width":459,"height":13}},{"id":"950192e7-55b7-4328-abe9-f90b7feeb983","block_type":"box","text":"o collect any charge relating to a transaction effected for the","page_number":569,"box":{"x":504,"y":662,"width":416,"height":13}},{"id":"3358a074-bda1-4da4-98ce-fc1beb1532fe","block_type":"box","text":"benefit of a shareholder. The Fund reserves the express right to redeem shares of the Fund involuntarily at any time if the Board of","page_number":569,"box":{"x":46,"y":677,"width":904,"height":13}},{"id":"1c3be59b-7dae-432b-8fb7-3b260a26be1e","block_type":"box","text":"Trustees determines, in its sole discretion, that failure to do so ma","page_number":569,"box":{"x":45,"y":693,"width":455,"height":12}},{"id":"b9587744-6642-42b6-b923-a43117883038","block_type":"box","text":"y have adverse consequences to the holders of shares in the Fund.","page_number":569,"box":{"x":501,"y":693,"width":452,"height":13}},{"id":"3d7d7f35-d4ea-436f-8ff3-005bb974b68d","block_type":"box","text":"Upon such redemption the holders of shares so redeemed shal","page_number":569,"box":{"x":45,"y":708,"width":428,"height":13}},{"id":"a3824f1f-540c-406b-bcd2-cf841db24b5f","block_type":"box","text":"l have no further right with respect thereto other than to receive","page_number":569,"box":{"x":474,"y":708,"width":442,"height":13}},{"id":"c2f82f32-cbbe-415e-b34a-856a60f9ef78","block_type":"box","text":"payment of the redemption price.","page_number":569,"box":{"x":45,"y":724,"width":231,"height":13}},{"id":"96732ed9-fa16-47a5-95d4-d9ea1ff134ce","block_type":"box","text":"WeLEAF reserves the right to redeem shares in any account that it cannot confirm to its satisfaction is beneficially owned by a","page_number":569,"box":{"x":45,"y":746,"width":875,"height":13}},{"id":"784ea16a-5106-4df5-9257-21bd541eb326","block_type":"box","text":"natural person, after providing at least 60 days’ advance notice.","page_number":569,"box":{"x":45,"y":762,"width":440,"height":13}},{"id":"b7ca700a-5ca9-43b7-ad00-8e57b367b175","block_type":"box","text":"Signature Guarantee.","page_number":569,"box":{"x":46,"y":785,"width":145,"height":12}},{"id":"83f9760a-8379-4747-8a03-92921dea3fbb","block_type":"box","text":"A signature guarantee is designed to protect the shareholders and the Fund against fraudulent transactions","page_number":569,"box":{"x":197,"y":784,"width":736,"height":13}},{"id":"6ab0fd0a-a41c-4333-9ef2-68fb82d93b43","block_type":"box","text":"by unauthorized persons. A signature guarantee may be obtai","page_number":569,"box":{"x":46,"y":800,"width":426,"height":12}},{"id":"0e2cb4d1-e3a8-470c-beed-6123f47185ae","block_type":"box","text":"ned from a domestic bank or trust company, recognized broker,","page_number":569,"box":{"x":472,"y":800,"width":444,"height":12}},{"id":"97eaea92-bf0f-4523-a248-270db3370cd5","block_type":"box","text":"dealer, clearing agency, savings association who are participants in a medallion program by the Securities Transfer Association,","page_number":569,"box":{"x":46,"y":815,"width":881,"height":13}},{"id":"fc84a14e-bdf5-44d6-a2c1-e0d398abaf18","block_type":"box","text":"credit unions, national securities exchanges and registered secur","page_number":569,"box":{"x":45,"y":831,"width":441,"height":12}},{"id":"65fb69cf-f193-4795-a8d2-003cb71b259c","block_type":"box","text":"ities associations. The three recognized medallion programs are","page_number":569,"box":{"x":486,"y":831,"width":439,"height":12}},{"id":"fc04ef09-7daa-4f14-b274-c28ecc5ec328","block_type":"box","text":"Securities Transfer Agent Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) and New York Stock","page_number":569,"box":{"x":46,"y":846,"width":862,"height":13}},{"id":"73c7f2be-0ea8-4d95-9b5a-b13cb108b3b6","block_type":"box","text":"Exchange, Inc. Medallion Signature Program (MSP). Signature Guarantees which are not a part of these programs will not be","page_number":569,"box":{"x":45,"y":862,"width":871,"height":12}},{"id":"5e7b6e88-6348-4f8d-a9f4-770734f60078","block_type":"box","text":"accepted. Please note that a notary public stamp or seal is not acceptable.","page_number":569,"box":{"x":46,"y":877,"width":506,"height":13}},{"id":"32e25e29-dc65-487a-844d-646fb82309ae","block_type":"box","text":"II-52","page_number":569,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"ee7666f1-b42e-4d18-9100-7ff7b6478ca1","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":569,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d80ad3e4-a3e5-4135-ac9e-d85059e581b6","block_type":"box","text":"Circle Reserve — Redemption of Shares","page_number":570,"box":{"x":46,"y":79,"width":288,"height":13}},{"id":"f0d468a9-5752-4f03-a87e-44e18e2b2910","block_type":"box","text":"Redemptions may be made in the manner and amounts described in Circle Reserve’s Prospectus. Signatures, when required, must","page_number":570,"box":{"x":46,"y":104,"width":897,"height":13}},{"id":"94572dfc-150e-49a9-966b-2caa51e8b1ae","block_type":"box","text":"conform exactly to the account registration. If (i) the pro","page_number":570,"box":{"x":45,"y":119,"width":393,"height":13}},{"id":"0a21fc23-5fa4-4548-a7e4-e0a26839b75b","block_type":"box","text":"ceeds of the redemption would exceed $250,000 for a redemption by","page_number":570,"box":{"x":439,"y":119,"width":479,"height":13}},{"id":"e627710e-ae16-43b2-899a-d2ee6bbfd256","block_type":"box","text":"wire, (ii) the Fund does not have verified banking information o","page_number":570,"box":{"x":45,"y":135,"width":443,"height":13}},{"id":"7bc61462-8b2f-4435-8e5c-9facee2c6032","block_type":"box","text":"n file, (iii) the proceeds are not to be paid to the record owner at","page_number":570,"box":{"x":489,"y":135,"width":445,"height":13}},{"id":"e3530726-2e27-4023-8ac5-84d24613a3f2","block_type":"box","text":"the record address, or (iv) the shareholder is a corporation, partn","page_number":570,"box":{"x":45,"y":150,"width":450,"height":13}},{"id":"9819b271-2de4-4a34-87c7-b03da8468a72","block_type":"box","text":"ership, trust or fiduciary, signature(s) may need to be guaranteed","page_number":570,"box":{"x":496,"y":150,"width":449,"height":13}},{"id":"f61d882f-3168-4967-9a7d-25f596b85b23","block_type":"box","text":"by any eligible guarantor institution.","page_number":570,"box":{"x":46,"y":166,"width":251,"height":13}},{"id":"c55ca64f-cf63-44aa-b0ce-b945279c8b71","block_type":"box","text":"Generally, a properly signed written request with any required signature guarantee is all that is required for a redemption. In some","page_number":570,"box":{"x":46,"y":191,"width":903,"height":13}},{"id":"50dbdebe-62c5-4488-a417-327f68af08f5","block_type":"box","text":"cases, however, other documents may be necessary. Additional documentary evidence of authority is required by BNY Mellon","page_number":570,"box":{"x":45,"y":206,"width":877,"height":13}},{"id":"e7e8de59-4c5d-41db-a04c-cf7fa2a026af","block_type":"box","text":"Investment Servicing (US) Inc. in the event redemption is request","page_number":570,"box":{"x":45,"y":222,"width":446,"height":13}},{"id":"1fca0960-8b0a-44a7-91af-bc02c8354617","block_type":"box","text":"ed by a corporation, partnership, trust, fiduciary, executor or","page_number":570,"box":{"x":492,"y":222,"width":424,"height":13}},{"id":"ea76d1a5-15dd-4c46-a901-e8badfc0b677","block_type":"box","text":"administrator. See “Signature Guarantee” below.","page_number":570,"box":{"x":46,"y":237,"width":340,"height":13}},{"id":"8f9f0cca-d672-4feb-9737-f6bcbe1baab0","block_type":"box","text":"Note on Low Balance Accounts","page_number":570,"box":{"x":45,"y":260,"width":222,"height":10}},{"id":"661c2f18-5971-46a1-a5c1-ca4649072726","block_type":"box","text":". Because of the high cost of maintaining smaller shareholder accounts, BlackRock has set a","page_number":570,"box":{"x":269,"y":260,"width":633,"height":13}},{"id":"fa782d9c-2aa6-4df6-8501-7d123b0b621b","block_type":"box","text":"minimum balance of $100,000 in the Fund position you hold within your account (“Fund Minimum”), and may redeem the","page_number":570,"box":{"x":45,"y":275,"width":865,"height":13}},{"id":"ea336864-e84c-4b29-891f-11163e8f8f35","block_type":"box","text":"shares in your account if the NAV of those shares in your account falls below $100,000 for any reason, including market","page_number":570,"box":{"x":46,"y":291,"width":840,"height":13}},{"id":"f344ba82-465e-4b62-ac16-183b6066bc95","block_type":"box","text":"fluctuation.","page_number":570,"box":{"x":45,"y":307,"width":79,"height":10}},{"id":"323ca5aa-3ef7-46e9-9440-fb7577e856b3","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 involuntary","page_number":570,"box":{"x":45,"y":329,"width":850,"height":13}},{"id":"7c8ef6d4-0582-4d3b-8a31-4ef9e838caba","block_type":"box","text":"redemption. This notification will provide you with a 90 calendar day period to make an additional investment in order to bring","page_number":570,"box":{"x":45,"y":345,"width":891,"height":13}},{"id":"52d0892c-01a0-4d60-91b1-fc5511ff7ce8","block_type":"box","text":"the value of your account to at least $100,000 before the Fund make","page_number":570,"box":{"x":45,"y":360,"width":477,"height":13}},{"id":"d0b62bea-64b2-42db-8c96-32e7ff164709","block_type":"box","text":"s an involuntary redemption. 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The Fund may suspend the right of redemption or postpone the date of payment upon","page_number":570,"box":{"x":280,"y":414,"width":607,"height":13}},{"id":"aa0de411-5ad1-4406-a935-46d73f4fe3ae","block_type":"box","text":"redemption for such periods as are permitted under the Investment Company Act, and may redeem shares involuntarily or make","page_number":570,"box":{"x":45,"y":429,"width":891,"height":13}},{"id":"a7fd0263-bc7e-4d6d-baee-939c6fb49b39","block_type":"box","text":"payment for redemption in securities or other property when d","page_number":570,"box":{"x":45,"y":445,"width":435,"height":13}},{"id":"0c3be0fc-d8a7-4b4a-87f5-bcbcf4ec4d6c","block_type":"box","text":"etermined appropriate in light of the Fund’s responsibilities under","page_number":570,"box":{"x":481,"y":445,"width":455,"height":13}},{"id":"ebfab093-28e4-40bf-9c28-206e4427e2a5","block_type":"box","text":"the Investment Company Act.","page_number":570,"box":{"x":45,"y":460,"width":207,"height":13}},{"id":"8bf8d275-d51d-4483-b757-7e4997be612b","block_type":"box","text":"The Fund reserves the right, if conditions exist which make cash p","page_number":570,"box":{"x":45,"y":483,"width":458,"height":13}},{"id":"7ad0906f-13c2-46ba-a634-c0c8dc3068f3","block_type":"box","text":"ayments undesirable, to honor any request for redemption or","page_number":570,"box":{"x":504,"y":483,"width":423,"height":13}},{"id":"a2fa343a-1427-4503-bdf1-be1ec77410c2","block_type":"box","text":"repurchase of the Fund’s shares by making payment in whole or in part in securities chosen by the Fund and valued in the same","page_number":570,"box":{"x":45,"y":499,"width":884,"height":12}},{"id":"f12d417e-6223-43a6-a621-d8dcce6473ca","block_type":"box","text":"way as they would be valued for purposes of computing the Fund’s NAV. 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The Fund has elected, however, to be governed by Rule 18f-1 under","page_number":570,"box":{"x":45,"y":530,"width":906,"height":12}},{"id":"4bdaa077-e0a4-457a-945c-771d6c9e935a","block_type":"box","text":"the Investment Company Act so that the Fund is obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1%","page_number":570,"box":{"x":45,"y":545,"width":890,"height":13}},{"id":"07f8dbf5-b825-4786-a03f-e3e75b382bd3","block_type":"box","text":"of its NAV during any 90-day period for any one shareholder of the Fund.","page_number":570,"box":{"x":46,"y":561,"width":515,"height":12}},{"id":"58a95bd3-95ed-445c-ac37-c924603584ef","block_type":"box","text":"Under the Investment Company Act, the Fund may suspend the right to redemption or postpone the date of payment upon","page_number":570,"box":{"x":45,"y":583,"width":853,"height":13}},{"id":"40dee1cc-62bf-43c5-8728-fa30d46a95cf","block_type":"box","text":"redemption for any period during which the NYSE is closed (oth","page_number":570,"box":{"x":45,"y":599,"width":449,"height":13}},{"id":"e5dc9f91-7240-49e9-92d2-637eccfdd6c1","block_type":"box","text":"er than customary weekend and holiday closings), or during","page_number":570,"box":{"x":495,"y":599,"width":416,"height":13}},{"id":"6a8accd2-d62b-4eb3-be4d-e5993f38c1ec","block_type":"box","text":"which trading on the NYSE is restricted, or during which (as determined by the SEC by rule or regulation) an emergency exists as","page_number":570,"box":{"x":45,"y":614,"width":898,"height":13}},{"id":"18a4c638-3a5a-48f5-b188-a0dbb3329703","block_type":"box","text":"a result of which disposal or valuation or portfolio securities is not reasonably practicable, or for such other periods as the SEC","page_number":570,"box":{"x":46,"y":630,"width":880,"height":13}},{"id":"c23a5026-f646-48cf-b6bb-ea69ce43bc62","block_type":"box","text":"may permit. 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The Fund reserves the express right to redeem shares of the Fund involuntarily at any time if the Board of","page_number":570,"box":{"x":46,"y":715,"width":904,"height":12}},{"id":"64c8c07c-288a-4f03-a975-c58e50ffe1fa","block_type":"box","text":"Trustees determines, in its sole discretion, that failure to do so ma","page_number":570,"box":{"x":45,"y":730,"width":455,"height":12}},{"id":"d1e85826-2a3a-412e-a76f-6afaafa63776","block_type":"box","text":"y have adverse consequences to the holders of shares in the Fund.","page_number":570,"box":{"x":501,"y":730,"width":452,"height":13}},{"id":"68e91146-d9c1-403a-a972-cb1f12449337","block_type":"box","text":"Upon such redemption the holders of shares so redeemed shal","page_number":570,"box":{"x":45,"y":746,"width":428,"height":12}},{"id":"a17a6337-df75-4993-a4b4-2ef1f6b6f139","block_type":"box","text":"l have no further right with respect thereto other than to receive","page_number":570,"box":{"x":474,"y":746,"width":442,"height":12}},{"id":"42408105-bf9f-4303-a3d9-236755427504","block_type":"box","text":"payment of the redemption price.","page_number":570,"box":{"x":45,"y":761,"width":231,"height":13}},{"id":"dff9d725-f0e1-49ea-8cbc-8cc4a7378b89","block_type":"box","text":"Signature Guarantee","page_number":570,"box":{"x":46,"y":784,"width":141,"height":13}},{"id":"105b2af4-74e8-4735-ac4b-a029737aa5f5","block_type":"box","text":". A signature guarantee is designed to protect the shareholders and the Fund against fraudulent transactions","page_number":570,"box":{"x":189,"y":784,"width":744,"height":13}},{"id":"7d37fe3e-adf1-41a0-bd13-714509b24745","block_type":"box","text":"by unauthorized persons. A signature guarantee may be obtai","page_number":570,"box":{"x":46,"y":799,"width":426,"height":13}},{"id":"e90518ca-7ee1-4993-bea4-49e3cbf7712f","block_type":"box","text":"ned from a domestic bank or trust company, recognized broker,","page_number":570,"box":{"x":472,"y":799,"width":444,"height":13}},{"id":"181daf9d-e368-4a10-b942-d3c568a0018b","block_type":"box","text":"dealer, clearing agency, savings association who are participants in a medallion program by the Securities Transfer Association,","page_number":570,"box":{"x":46,"y":815,"width":881,"height":13}},{"id":"243affdc-a381-41e8-bac6-f45f0adac506","block_type":"box","text":"credit unions, national securities exchanges and registered secur","page_number":570,"box":{"x":45,"y":830,"width":441,"height":13}},{"id":"05373f8d-9f4a-4347-beb0-ec8f2f20ebcf","block_type":"box","text":"ities associations. The three recognized medallion programs are","page_number":570,"box":{"x":486,"y":830,"width":439,"height":13}},{"id":"ba3769fa-7f25-405d-bbb8-509a04a0051d","block_type":"box","text":"Securities Transfer Agent Medallion Program (STAMP), Stock Exchanges Medallion Program (SEMP) and New York Stock","page_number":570,"box":{"x":46,"y":846,"width":862,"height":13}},{"id":"8f5f451b-1508-41b3-8315-6a106497d232","block_type":"box","text":"Exchange, Inc. Medallion Signature Program (MSP). Signature Guarantees which are not a part of these programs will not be","page_number":570,"box":{"x":45,"y":861,"width":871,"height":13}},{"id":"a92ce9b8-e058-4b5f-8b0e-714a618ba6d3","block_type":"box","text":"accepted. Please note that a notary public stamp or seal is not acceptable.","page_number":570,"box":{"x":46,"y":877,"width":506,"height":13}},{"id":"38629951-2338-41c3-8b77-b81dae6260ba","block_type":"box","text":"II-53","page_number":570,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"61ff8a91-cd9c-4191-8d68-ddaaff83b3c2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":570,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b2d16427-9036-45fa-85cc-006caf3854ba","block_type":"box","text":"D","page_number":571,"box":{"x":355,"y":80,"width":12,"height":9}},{"id":"df4858d4-6edc-438d-90f5-f291f1fc1683","block_type":"box","text":"ETERMINATION OF","page_number":571,"box":{"x":368,"y":82,"width":136,"height":7}},{"id":"3fb593c8-4128-4f1c-97e3-5f2ad062b40d","block_type":"box","text":"N","page_number":571,"box":{"x":510,"y":80,"width":13,"height":9}},{"id":"1eaa2c1f-94b8-40fc-8efe-03e03692fb7b","block_type":"box","text":"ET","page_number":571,"box":{"x":524,"y":82,"width":17,"height":7}},{"id":"0bb9a6ff-24f9-46d1-a628-8d7fbdfa30b5","block_type":"box","text":"A","page_number":571,"box":{"x":546,"y":79,"width":12,"height":10}},{"id":"a039358b-dca2-42c7-9d9a-c5ee29eef521","block_type":"box","text":"SSET","page_number":571,"box":{"x":559,"y":82,"width":31,"height":7}},{"id":"b021e818-4319-4a31-b9cc-db3a2b0f5eca","block_type":"box","text":"V","page_number":571,"box":{"x":595,"y":80,"width":12,"height":9}},{"id":"4638fcbe-490d-4fe6-bb84-2047097fc443","block_type":"box","text":"ALUE","page_number":571,"box":{"x":607,"y":82,"width":37,"height":7}},{"id":"02f40dcb-4eb7-42c5-973d-22574efa5ce2","block_type":"box","text":"Each Fund seeks to maintain a NAV of $1.00 per share for purposes of purchase and redemptions and values its portfolio","page_number":571,"box":{"x":45,"y":104,"width":846,"height":13}},{"id":"3ef0dabd-19aa-4ffd-b733-50f469db3c48","block_type":"box","text":"securities on the basis of the amortized cost method of valuation.","page_number":571,"box":{"x":46,"y":120,"width":449,"height":10}},{"id":"7efe9023-47fb-445e-bacb-ce246ee20c0f","block_type":"box","text":"Under this method portfolio securities are valued at cost when purchased and thereafter, a constant proportionate accretion of any","page_number":571,"box":{"x":45,"y":142,"width":906,"height":13}},{"id":"6943960f-1000-406c-bd82-268146996fda","block_type":"box","text":"discount or amortization of premium is recorded until the maturity of the security. The effect of changes in the market value of a","page_number":571,"box":{"x":46,"y":158,"width":892,"height":13}},{"id":"1c431cbe-2c1e-48c2-bb20-beaf08f21090","block_type":"box","text":"security as a result of fluctuating interest rates is not taken into account.","page_number":571,"box":{"x":46,"y":173,"width":497,"height":13}},{"id":"f9882cc1-d0e8-4a08-8491-a8802f085cf9","block_type":"box","text":"As indicated, the amortized cost method of valuation may result in the value of a security being higher or lower than its market","page_number":571,"box":{"x":45,"y":196,"width":882,"height":13}},{"id":"eaa11d70-a089-4e28-ba06-f5dba56f83a0","block_type":"box","text":"price, the price a Fund would receive if the security were sold prior to maturity. Each Fund’s Board has established procedures for","page_number":571,"box":{"x":45,"y":212,"width":900,"height":13}},{"id":"492fbbf4-1164-4320-9917-90b72aa17ffd","block_type":"box","text":"the purpose of maintaining a constant NAV of $1.00 per share for each Fund; however, there can be no assurance that a constant","page_number":571,"box":{"x":45,"y":227,"width":901,"height":13}},{"id":"0e9124a1-6cba-494b-9bbe-43f07075ce35","block_type":"box","text":"NAV will be maintained for any Fund. Such procedures include a review of the extent of any deviation of NAV per share, based","page_number":571,"box":{"x":45,"y":243,"width":890,"height":13}},{"id":"b8452076-566f-48a3-a448-45670315f351","block_type":"box","text":"on available market quotations, from the $1.00 amortized cost per share.","page_number":571,"box":{"x":46,"y":258,"width":507,"height":13}},{"id":"51688919-859b-4053-af35-e16d74f6cd2a","block_type":"box","text":"Should that deviation exceed","page_number":571,"box":{"x":46,"y":281,"width":199,"height":10}},{"id":"9f279bfb-a191-4e33-9170-6cbbc5b8dbfa","block_type":"box","text":"1⁄","page_number":571,"box":{"x":253,"y":282,"width":4,"height":6}},{"id":"bd17d1c0-d3c0-4df3-a3d2-03af8e45d5e1","block_type":"box","text":"1⁄2","page_number":571,"box":{"x":255,"y":282,"width":9,"height":9}},{"id":"d2438746-2706-49de-a92d-8736b245f923","block_type":"box","text":"⁄2","page_number":571,"box":{"x":262,"y":285,"width":6,"height":6}},{"id":"edb3a9ce-dbca-4665-8dc4-f1824eb48054","block_type":"box","text":"of 1% for a Fund, the Fund’s Board will promptly consider whether any action should be","page_number":571,"box":{"x":274,"y":281,"width":620,"height":13}},{"id":"83c24fd9-2d2a-4419-bba7-41a5878a1766","block_type":"box","text":"initiated to eliminate or reduce material dilution or other adv","page_number":571,"box":{"x":45,"y":297,"width":424,"height":10}},{"id":"494f9726-dca6-4989-a9bd-c8897462e1ec","block_type":"box","text":"erse impact to shareholders. Such action may include redeeming","page_number":571,"box":{"x":469,"y":297,"width":443,"height":13}},{"id":"5096f1d2-592a-4453-a7c1-96daff55b132","block_type":"box","text":"shares in kind, selling portfolio securities prior to maturity, reducing or withholding dividends, shortening the average portfolio","page_number":571,"box":{"x":46,"y":312,"width":882,"height":13}},{"id":"7a5edcc2-ada1-4044-bf27-4a7db5281d81","block_type":"box","text":"maturity, and utilizing a NAV per share as determined by using available market quotations.","page_number":571,"box":{"x":45,"y":328,"width":643,"height":13}},{"id":"568e28eb-c1ef-4c26-b093-2ccb3961653f","block_type":"box","text":"Each Fund will maintain a dollar-weighted average portfolio maturity of 60 days or less, a dollar-weighted average life of 120","page_number":571,"box":{"x":45,"y":351,"width":872,"height":12}},{"id":"aeb1821c-824d-4ec1-a975-f688a570b3e9","block_type":"box","text":"days or less, will not purchase any instrument with a deemed maturity under Rule 2a-7 of the Investment Company Act greater","page_number":571,"box":{"x":46,"y":366,"width":883,"height":13}},{"id":"9e164ce0-1131-4b58-b58e-be214a676a83","block_type":"box","text":"than 397 days, and will limit portfolio investments, including repu","page_number":571,"box":{"x":45,"y":382,"width":461,"height":12}},{"id":"3930c4fb-a1da-4ad6-8f7d-185463af4792","block_type":"box","text":"rchase agreements, to those instruments that the adviser or","page_number":571,"box":{"x":506,"y":382,"width":407,"height":12}},{"id":"cce5cb01-a2eb-423e-b90b-96796e66a14c","block_type":"box","text":"sub-adviser determines to be “eligible securities” under Rule 2a-7 pursuant to guidelines adopted by a Fund’s Board.","page_number":571,"box":{"x":46,"y":397,"width":807,"height":13}},{"id":"030288ee-d0e6-43af-b858-b902bdc242a1","block_type":"box","text":"Y","page_number":571,"box":{"x":422,"y":436,"width":12,"height":9}},{"id":"06ac683a-fdbf-472c-8c44-14e3343abee8","block_type":"box","text":"IELD","page_number":571,"box":{"x":434,"y":438,"width":31,"height":7}},{"id":"56bca1c5-92f2-4d5c-b9ef-d7523fab4017","block_type":"box","text":"I","page_number":571,"box":{"x":471,"y":436,"width":5,"height":9}},{"id":"c6f94227-0f75-4b96-9541-0a4fd8a1be1a","block_type":"box","text":"NFORMATION","page_number":571,"box":{"x":476,"y":438,"width":101,"height":7}},{"id":"ffc7743e-d3a0-45a2-804c-b654d869084e","block_type":"box","text":"Each Fund computes its annualized yield in accordance with regulations adopted by the Commission by determining the net","page_number":571,"box":{"x":45,"y":460,"width":861,"height":13}},{"id":"ac92066f-eeb6-4932-a036-a68b399a0ff1","block_type":"box","text":"changes in value, exclusive of capital changes and income oth","page_number":571,"box":{"x":45,"y":476,"width":426,"height":12}},{"id":"53e6feca-c7b4-4129-b603-459c2948ca7a","block_type":"box","text":"er than investment income, for a seven-day base period for a","page_number":571,"box":{"x":472,"y":476,"width":418,"height":12}},{"id":"e0da8941-ad93-46bd-983a-40d976ab57eb","block_type":"box","text":"hypothetical pre-existing account having a balance of one share a","page_number":571,"box":{"x":45,"y":491,"width":453,"height":13}},{"id":"1d2e1135-4e95-4339-b32b-1e8fc50a84c6","block_type":"box","text":"t the beginning of the base period, subtracting a hypothetical","page_number":571,"box":{"x":498,"y":491,"width":421,"height":13}},{"id":"52da119c-3e84-48b4-ad8e-d9a839026e3c","block_type":"box","text":"shareholder account charge, and dividing the difference by the","page_number":571,"box":{"x":46,"y":507,"width":430,"height":12}},{"id":"baf9e54c-44e2-43a5-b35b-648cac6dcef3","block_type":"box","text":"value of the account at the beginning of the base period to obtain","page_number":571,"box":{"x":481,"y":507,"width":453,"height":12}},{"id":"29e822ec-a974-4eb4-bfe4-98664df52812","block_type":"box","text":"the base period return, and then multiplying the result by 365 and then dividing by seven. This yield calculation does not take into","page_number":571,"box":{"x":45,"y":522,"width":903,"height":13}},{"id":"3f76483a-f5b9-4679-a119-c596bbbd9793","block_type":"box","text":"consideration any realized or unrealized gains or losses on portfo","page_number":571,"box":{"x":45,"y":538,"width":450,"height":12}},{"id":"ab5a2743-5c53-4c5c-87b4-e3096aac3240","block_type":"box","text":"lio securities. The Commission also permits the calculation of a","page_number":571,"box":{"x":496,"y":538,"width":438,"height":12}},{"id":"c46f4089-e441-442b-a4c0-d499cc9b9f6f","block_type":"box","text":"standardized effective or compounded yield. This is computed","page_number":571,"box":{"x":46,"y":553,"width":429,"height":13}},{"id":"a816e18b-0751-464e-accf-ec3c19b77e72","block_type":"box","text":"by compounding the unannualized base period return, which is","page_number":571,"box":{"x":480,"y":553,"width":438,"height":13}},{"id":"60bde326-91de-4f9c-a33f-34ebf09b810c","block_type":"box","text":"done by adding one to the base period return, raising the sum to a pow","page_number":571,"box":{"x":46,"y":569,"width":492,"height":12}},{"id":"f79e006e-efb9-434c-ad08-d3825f3efdf5","block_type":"box","text":"er equal to 365 divided by seven, and subtracting one from","page_number":571,"box":{"x":539,"y":569,"width":409,"height":12}},{"id":"184dfbb8-2d54-4dbe-9314-273fe34e8f14","block_type":"box","text":"the result. This compounded yield calculation also excludes realized and unrealized gains or losses on portfolio securities.","page_number":571,"box":{"x":45,"y":584,"width":839,"height":13}},{"id":"044bb7da-a0c6-4125-9926-396971069047","block_type":"box","text":"The yield on each Fund’s shares normally will fluctuate on a daily basis. Therefore, the yield for any given past period is not an","page_number":571,"box":{"x":45,"y":607,"width":881,"height":13}},{"id":"5765f936-fbaa-4d3e-a45c-a50cfaebe516","block_type":"box","text":"indication or representation by a Fund of future yields or rates of return on its shares. The yield is affected by such factors as","page_number":571,"box":{"x":45,"y":622,"width":863,"height":13}},{"id":"d40f9590-f3a1-44db-9e7b-f47f399cd279","block_type":"box","text":"changes in interest rates on a Fund’s portfolio securities, average portfolio maturity, the types and quality of portfolio securities","page_number":571,"box":{"x":45,"y":638,"width":882,"height":13}},{"id":"7a6beddd-fe3c-433f-92cd-891ab59a905c","block_type":"box","text":"held and operating expenses. The yield on Fund shares for various reasons may not be comparable to the yield on bank deposits,","page_number":571,"box":{"x":45,"y":653,"width":893,"height":13}},{"id":"ecbc0556-ad0a-42a3-aa42-a16815ca717c","block_type":"box","text":"shares of other money market funds or other investments.","page_number":571,"box":{"x":46,"y":669,"width":400,"height":13}},{"id":"a5982853-c9b3-4091-96f3-6d876c156f22","block_type":"box","text":"See “Yield Information” in Part I of each Fund’s SAI for recent seven-day yield information relating to your Fund.","page_number":571,"box":{"x":46,"y":692,"width":789,"height":13}},{"id":"93af28c4-6d2f-4bcb-9227-0f15110a382d","block_type":"box","text":"On occasion, each Fund may compare its yield to (1) an industry average compiled by Donoghue’s Money Fund Report, a widely","page_number":571,"box":{"x":46,"y":715,"width":898,"height":12}},{"id":"459eabd7-5557-45c7-8848-f263961a8e98","block_type":"box","text":"recognized independent publication that monitors the performanc","page_number":571,"box":{"x":45,"y":730,"width":457,"height":13}},{"id":"7af47a6c-dc59-40d5-911b-ab7eb55de7fc","block_type":"box","text":"e of money market mutual funds, (2) the average yield reported","page_number":571,"box":{"x":503,"y":730,"width":439,"height":13}},{"id":"1b829a6d-1d60-4b71-beec-31fb27c23610","block_type":"box","text":"by the Bank Rate Monitor National Index","page_number":571,"box":{"x":46,"y":746,"width":293,"height":13}},{"id":"495f9aeb-dd65-4750-aa8d-0189345eb03b","block_type":"box","text":"TM","page_number":571,"box":{"x":339,"y":746,"width":18,"height":6}},{"id":"bf1b862d-14ae-4774-9c5e-ad4a2f5c37e6","block_type":"box","text":"for money market deposit accounts offered by the 100 leading banks and thrift","page_number":571,"box":{"x":361,"y":746,"width":548,"height":13}},{"id":"bc3f54f1-e1dc-4a4d-9271-b23417d4f9b1","block_type":"box","text":"institutions in the ten largest standard metropolitan statistical areas, (3) yield data published by industry publications, including","page_number":571,"box":{"x":45,"y":761,"width":884,"height":13}},{"id":"603cbec5-3c25-49fe-bea8-44c90cf16071","block_type":"box","text":"Lipper Inc., Morningstar, Inc.,","page_number":571,"box":{"x":46,"y":777,"width":210,"height":13}},{"id":"fdcf64c9-b5ff-424b-a35b-30a0ad56a087","block_type":"box","text":"Money Magazine, U.S. News & World Report, BusinessWeek, CDA Investment Technology, Inc.,","page_number":571,"box":{"x":261,"y":777,"width":686,"height":13}},{"id":"1ad3718f-f8bf-4c42-b15c-6fe8b4b7b44b","block_type":"box","text":"Forbes Magazine","page_number":571,"box":{"x":45,"y":792,"width":118,"height":13}},{"id":"292546a3-3a02-4baf-8fdc-4eb56d13415d","block_type":"box","text":"and","page_number":571,"box":{"x":169,"y":792,"width":25,"height":10}},{"id":"475795ae-f1bc-4779-9e7f-c697c29fab1c","block_type":"box","text":"Fortune Magazine","page_number":571,"box":{"x":199,"y":793,"width":126,"height":12}},{"id":"ef240c31-d9bf-4eee-bff4-abf1fcc2f432","block_type":"box","text":", or (4) the yield on an investment in 90-day Treasury bills on a rolling basis, assuming","page_number":571,"box":{"x":326,"y":792,"width":599,"height":13}},{"id":"3812dc5f-aa84-436f-bb47-c0ab5051301b","block_type":"box","text":"quarterly compounding. As with yield quotations, yield compar","page_number":571,"box":{"x":46,"y":808,"width":441,"height":13}},{"id":"64f1e92c-ea9f-47b3-ba64-084ed779f38c","block_type":"box","text":"isons should not be considered indicative of a Fund’s yield or","page_number":571,"box":{"x":488,"y":808,"width":422,"height":13}},{"id":"d5b8cb0c-6480-46d3-a6c8-73d0b58f6b8d","block_type":"box","text":"relative performance for any future period.","page_number":571,"box":{"x":45,"y":823,"width":296,"height":13}},{"id":"fb9dc08f-d7b9-4bdc-8de5-d4608298436c","block_type":"box","text":"A Fund may provide information designed to help investor","page_number":571,"box":{"x":45,"y":846,"width":408,"height":13}},{"id":"95d3939c-f760-46b8-8c73-99b19bb8e45e","block_type":"box","text":"s understand how the Fund is seeking to achieve its investment","page_number":571,"box":{"x":454,"y":846,"width":434,"height":13}},{"id":"ef2241ff-a8a6-431b-b128-3717f8f48f2d","block_type":"box","text":"objective. 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Each Fund may also quote various measures of volatility and benchmark correlation in","page_number":572,"box":{"x":45,"y":110,"width":831,"height":13}},{"id":"3b244343-687a-4913-9896-94d077918dec","block_type":"box","text":"advertising and other materials, and may compare these measures to those of other funds or types of investments.","page_number":572,"box":{"x":46,"y":125,"width":785,"height":13}},{"id":"6094ac90-e96a-4158-8058-34d4b17903d3","block_type":"box","text":"P","page_number":572,"box":{"x":399,"y":160,"width":9,"height":9}},{"id":"a3b4cc3d-8d9e-47c5-bfb3-33b599b23c1c","block_type":"box","text":"ORTFOLIO","page_number":572,"box":{"x":408,"y":162,"width":74,"height":7}},{"id":"c4961811-b7e6-43ae-87b4-0024c0d6823f","block_type":"box","text":"T","page_number":572,"box":{"x":487,"y":159,"width":12,"height":10}},{"id":"2e2bf592-534e-467b-b3cf-aa7d786f498b","block_type":"box","text":"RANSACTIONS","page_number":572,"box":{"x":499,"y":162,"width":101,"height":7}},{"id":"80b4d2da-ec3d-4d36-bc6c-fcb1fb3dbddb","block_type":"box","text":"Subject to policies established by the Board of each Fund, the Manager is primarily responsible for the execution of a Fund’s","page_number":572,"box":{"x":46,"y":187,"width":861,"height":12}},{"id":"f9d00ebc-bb4d-4f23-b1ce-b3687f4c599e","block_type":"box","text":"portfolio transactions. The Manager does not execute transactions through any particular broker or dealer, but seeks to obtain the","page_number":572,"box":{"x":45,"y":202,"width":906,"height":13}},{"id":"825578c5-44cb-4b4d-a220-13ac8c8a2240","block_type":"box","text":"best net results for the Fund, taking into account such factors a","page_number":572,"box":{"x":46,"y":218,"width":436,"height":12}},{"id":"09513da2-7aad-427c-8e68-7c0ca9780db3","block_type":"box","text":"s price (including the applicable dealer spread), size of order,","page_number":572,"box":{"x":483,"y":218,"width":419,"height":12}},{"id":"0cbeeac5-eeb4-4b98-92ea-55fda316cd32","block_type":"box","text":"difficulty of execution, operational facilities of the firm and the firm’s risk and skill in positioning blocks of securities. While the","page_number":572,"box":{"x":46,"y":233,"width":885,"height":13}},{"id":"1b6dd8d5-54e2-4b79-9a07-878c5fd57c92","block_type":"box","text":"Manager generally seeks reasonable trade execution costs, a Fund does not necessarily pay the lowest spread or commission","page_number":572,"box":{"x":45,"y":249,"width":859,"height":12}},{"id":"f7139a15-15d2-43e2-ae3c-408dd66764ca","block_type":"box","text":"available. Each Fund’s policy of investing in securities with short maturities will result in high portfolio turnover.","page_number":572,"box":{"x":46,"y":264,"width":781,"height":13}},{"id":"c29f3a58-d351-4ce3-a2e0-8ee165cc4988","block_type":"box","text":"Subject to obtaining the best net results, dealers who provide supplemental investment research (such as economic data and","page_number":572,"box":{"x":46,"y":289,"width":854,"height":13}},{"id":"2a7d4c92-ec67-49d7-8462-3c5f27c98516","block_type":"box","text":"market forecasts) to the Manager may receive orders for transac","page_number":572,"box":{"x":45,"y":304,"width":445,"height":13}},{"id":"a7a233c2-960d-4504-a5cc-119620b36ebb","block_type":"box","text":"tions of the Fund. Information received will be in addition to and","page_number":572,"box":{"x":491,"y":304,"width":452,"height":10}},{"id":"4c58d3e7-97a4-46df-9d5a-2f23ecf05989","block_type":"box","text":"not in lieu of the services required to be performed by the Manager under each Management Agreement and the expenses of the","page_number":572,"box":{"x":45,"y":320,"width":888,"height":13}},{"id":"81bf3d2a-f9b8-4efd-8ad7-67d284f05cde","block_type":"box","text":"Manager will not necessarily be reduced as a result of the receipt of such supplemental information.","page_number":572,"box":{"x":45,"y":335,"width":690,"height":13}},{"id":"76d7667e-be70-4129-8c1d-c9d1c3a3875f","block_type":"box","text":"The portfolio securities in which each Fund invests are traded pr","page_number":572,"box":{"x":45,"y":360,"width":446,"height":13}},{"id":"67ec81d1-f238-427c-a2df-f78a0f86b674","block_type":"box","text":"imarily in the OTC market. 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Money","page_number":572,"box":{"x":46,"y":406,"width":894,"height":13}},{"id":"02fadfba-a91f-48ef-a471-71054d3b0750","block_type":"box","text":"market securities are generally traded on a net basis and do not normally involve either brokerage commissions or transfer taxes.","page_number":572,"box":{"x":45,"y":422,"width":892,"height":13}},{"id":"5c033cab-caa2-4d18-8163-ba456a408575","block_type":"box","text":"The cost of executing portfolio securities transactions of a Fund primarily will consist of dealer spreads. Under the Investment","page_number":572,"box":{"x":45,"y":437,"width":872,"height":13}},{"id":"6867f457-3c34-48af-92b8-0557c732064c","block_type":"box","text":"Company Act, persons affiliated with a Fund and persons who are affiliated with such affiliated persons are prohibited from","page_number":572,"box":{"x":46,"y":453,"width":863,"height":13}},{"id":"9c2863a8-da29-4ec3-8c29-55520b459d0d","block_type":"box","text":"dealing with the Fund as principals in the purchase and sale of secu","page_number":572,"box":{"x":46,"y":468,"width":465,"height":13}},{"id":"51627773-aa75-4e09-b099-a46d6ab428e3","block_type":"box","text":"rities unless an exemptive order allowing such transactions is","page_number":572,"box":{"x":512,"y":468,"width":421,"height":13}},{"id":"95137286-eff2-41e7-b599-a76a5700f2b0","block_type":"box","text":"obtained from the Commission. Since transactions in the OTC market usually involve transactions with the dealers acting as","page_number":572,"box":{"x":46,"y":484,"width":863,"height":13}},{"id":"e6c7a2b2-c99b-47bc-bd76-666452dc8fbc","block_type":"box","text":"principals for their own accounts, the Funds will not deal with affiliated persons in connection with such transactions, except","page_number":572,"box":{"x":45,"y":499,"width":868,"height":13}},{"id":"81e01009-bc59-467f-893d-3f0cbee3c67c","block_type":"box","text":"pursuant to an applicable exemptive order or as otherwise p","page_number":572,"box":{"x":45,"y":515,"width":417,"height":13}},{"id":"bbe39bcc-b707-4b4f-9f29-b6975078c902","block_type":"box","text":"ermitted by applicable law. However, an affiliated person of a Fund","page_number":572,"box":{"x":463,"y":515,"width":471,"height":13}},{"id":"2fa37f36-f61b-440c-a498-ed716f1914ac","block_type":"box","text":"may serve as its broker in OTC transactions conducted on an agency basis.","page_number":572,"box":{"x":45,"y":530,"width":520,"height":13}},{"id":"7f7c8d14-b3ac-4b7e-af5a-ceb3226e8304","block_type":"box","text":"The Manager does not consider sales of shares of the mutual funds it advises as a factor in the selection of brokers or dealers to","page_number":572,"box":{"x":45,"y":555,"width":883,"height":13}},{"id":"9fb16fef-cb6e-4849-bccf-84ad6e4e2b08","block_type":"box","text":"execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer sells shares of the mutual funds","page_number":572,"box":{"x":46,"y":571,"width":886,"height":12}},{"id":"07ae22ee-1a66-4f77-9f97-fce548a403e1","block_type":"box","text":"advised by the Manager neither qualifies nor disqualifies such broker or dealer to execute transactions for those mutual funds.","page_number":572,"box":{"x":46,"y":586,"width":873,"height":13}},{"id":"405c3f33-85b8-4c85-a48c-cf50fae1a926","block_type":"box","text":"OTC issues, including most fixed income securities such as corporate debt and U.S. Government securities, are normally traded on","page_number":572,"box":{"x":46,"y":611,"width":904,"height":12}},{"id":"68ed3df4-5344-41a2-b6fa-b312cb85c287","block_type":"box","text":"a “net” basis without a stated commission, through dealers acting for their own account and not as brokers. The Funds will","page_number":572,"box":{"x":46,"y":626,"width":859,"height":13}},{"id":"1cae957d-bd1b-41a0-b303-24986b28ac00","block_type":"box","text":"primarily engage in transactions with these dealers or deal directly with the issuer unless a better price or execution could be","page_number":572,"box":{"x":45,"y":642,"width":860,"height":13}},{"id":"1ad7b935-940a-4fcc-ab1f-beb933da219e","block_type":"box","text":"obtained by using a broker. Prices paid to a dealer with respect to both non-U.S. and domestic securities will generally include a","page_number":572,"box":{"x":46,"y":657,"width":885,"height":13}},{"id":"77ac5396-ad31-435c-a03f-a15f6986bb6f","block_type":"box","text":"“spread,” which is the difference between the prices at which the","page_number":572,"box":{"x":47,"y":673,"width":448,"height":13}},{"id":"8963c317-a915-4094-9b37-bc99bc2140e7","block_type":"box","text":"dealer is willing to purchase and sell the specific security at the","page_number":572,"box":{"x":501,"y":673,"width":432,"height":13}},{"id":"222d9acc-0ec7-45c0-b6d0-e3a9df89ae9d","block_type":"box","text":"time, and includes the dealer’s normal profit.","page_number":572,"box":{"x":45,"y":688,"width":311,"height":13}},{"id":"1ec972ce-3052-48f7-8c89-90163ddcd225","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds do not currently","page_number":572,"box":{"x":45,"y":713,"width":888,"height":13}},{"id":"2d57345d-6951-4850-aa7c-e51ca92c5834","block_type":"box","text":"expect to incur any brokerage commission expense on such transactions because money market instruments are generally traded","page_number":572,"box":{"x":46,"y":728,"width":890,"height":13}},{"id":"899aa824-d386-419f-8c4c-f9d27209147c","block_type":"box","text":"on a “net” basis with dealers acting as principal for their own accounts without a stated commission. The price of the security,","page_number":572,"box":{"x":46,"y":744,"width":877,"height":13}},{"id":"3e013792-a7c2-45a4-901d-f2b92b2adc92","block_type":"box","text":"however, usually includes a profit to the dealer. Each money market Fund (each a “Money Market Fund”) intends to purchase","page_number":572,"box":{"x":45,"y":759,"width":881,"height":13}},{"id":"e71519aa-3191-4f6f-83e9-3789b708a109","block_type":"box","text":"only securities with remaining maturities of 397 days or less as determined in accordance with the rules of the Commission. As a","page_number":572,"box":{"x":46,"y":775,"width":890,"height":13}},{"id":"cbc0ac6c-d182-43e3-b8ca-32483616e7c6","block_type":"box","text":"result, the portfolio turnover rates of a Money Market Fund will be relatively high. However, because brokerage commissions will","page_number":572,"box":{"x":45,"y":790,"width":905,"height":13}},{"id":"659c5a80-d076-47f4-9172-bf09954d9f07","block_type":"box","text":"not normally be paid with respect to investments made by a Money Market Fund, the turnover rates should not adversely affect","page_number":572,"box":{"x":45,"y":806,"width":889,"height":13}},{"id":"64c921ac-d5c5-4d4f-92f6-ef27c2be8208","block_type":"box","text":"the Fund’s NAVs or net income.","page_number":572,"box":{"x":45,"y":821,"width":224,"height":10}},{"id":"acdd9c09-ac62-453e-a505-6709820740d6","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed","page_number":572,"box":{"x":46,"y":846,"width":423,"height":13}},{"id":"49d61aeb-6b1e-4d34-8059-260c3a24eaf4","block_type":"box","text":"amount of compensation to the underwriter, generally referred to as","page_number":572,"box":{"x":474,"y":846,"width":472,"height":13}},{"id":"5f475c0f-67ff-4a6a-aa74-93fee151f978","block_type":"box","text":"the underwriter’s concession or discount. When offered securities are purchased or sold directly from or to an issuer, no","page_number":572,"box":{"x":45,"y":861,"width":830,"height":13}},{"id":"e7c7c043-ee9c-4344-b696-78f92a63b589","block_type":"box","text":"commissions or discounts are paid except where required by local markets.","page_number":572,"box":{"x":45,"y":877,"width":520,"height":13}},{"id":"5066ace4-98b0-4c6e-886f-4528d1a3f038","block_type":"box","text":"II-55","page_number":572,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"afd5b9b8-1f43-4b7a-997c-eee646eb20cd","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":572,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"03e3411f-ce50-478a-b798-ee8ae63fd383","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers selling commercial","page_number":573,"box":{"x":45,"y":79,"width":891,"height":13}},{"id":"26ef895b-d0ff-4455-b4d0-2870e0b21349","block_type":"box","text":"paper to consider the repurchase of such securities from a Fund pr","page_number":573,"box":{"x":45,"y":94,"width":459,"height":13}},{"id":"7825907c-63c5-4fe7-9592-172f1f01dcea","block_type":"box","text":"ior to maturity at their original cost plus interest (sometimes","page_number":573,"box":{"x":505,"y":94,"width":416,"height":13}},{"id":"ce36ead3-b9bb-4ad1-8f12-a86bc46712b7","block_type":"box","text":"adjusted to reflect the actual maturity of the securities), if it belie","page_number":573,"box":{"x":46,"y":110,"width":446,"height":13}},{"id":"3b02deb2-02f4-4acf-92ba-37458fc33397","block_type":"box","text":"ves that a Fund’s anticipated need for liquidity makes such action","page_number":573,"box":{"x":492,"y":110,"width":454,"height":13}},{"id":"55c70405-9a11-4999-8cf5-6dfab16579d7","block_type":"box","text":"desirable. Any such repurchase prior to maturity reduces the possibility that a Fund would incur a capital loss in liquidating","page_number":573,"box":{"x":46,"y":125,"width":857,"height":13}},{"id":"f2ac6eb6-55d6-4985-b9d5-7113b1b4bc5d","block_type":"box","text":"commercial paper, especially if interest rates have risen since acquisition of such commercial paper.","page_number":573,"box":{"x":45,"y":141,"width":685,"height":13}},{"id":"8b4fa65c-d97b-49fc-bb02-5cd9e0998c4a","block_type":"box","text":"Investment decisions for each Fund and for other investme","page_number":573,"box":{"x":45,"y":164,"width":405,"height":10}},{"id":"9ea23fb0-aa14-42c1-8278-c764f7eedbb4","block_type":"box","text":"nt accounts managed by the Manager or sub-advisers are made","page_number":573,"box":{"x":451,"y":164,"width":438,"height":13}},{"id":"2cf16322-dcfc-4582-9bb6-8a2171969bf6","block_type":"box","text":"independently of each other in light of differing conditions. Black","page_number":573,"box":{"x":45,"y":180,"width":452,"height":12}},{"id":"853baf7b-6f87-4ed4-ac95-396c892f3770","block_type":"box","text":"Rock allocates investments among client accounts in a fair and","page_number":573,"box":{"x":498,"y":180,"width":435,"height":12}},{"id":"0407c067-35bb-4edc-b023-5af05d1b7e4b","block_type":"box","text":"equitable manner. A variety of factors will be considered in making such allocations. These factors include: (i) investment","page_number":573,"box":{"x":46,"y":195,"width":840,"height":13}},{"id":"66ca221b-8ed7-4ad9-8f1f-729710c5df11","block_type":"box","text":"objectives or strategies for particular accounts, including sector, industry, country or region and capitalization weightings, (ii) tax","page_number":573,"box":{"x":46,"y":211,"width":895,"height":12}},{"id":"bcd0e68d-5561-49ee-b0e2-8f75a30a7a12","block_type":"box","text":"considerations of an account, (iii) risk or investment concentration parameters for an account, (iv) supply or demand for a security","page_number":573,"box":{"x":45,"y":226,"width":906,"height":13}},{"id":"edcd29d1-510e-4e04-a107-debc6cb59bac","block_type":"box","text":"at a given price level, (v) size of available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory","page_number":573,"box":{"x":46,"y":242,"width":899,"height":12}},{"id":"a919514a-da9e-4464-adff-e64421de86dd","block_type":"box","text":"restrictions, (viii) minimum investment size of an account, (ix","page_number":573,"box":{"x":45,"y":257,"width":425,"height":12}},{"id":"24c4c7f4-c601-4519-b701-9a61b4a8654d","block_type":"box","text":") relative size of account, and (x) such other factors as may be","page_number":573,"box":{"x":471,"y":257,"width":427,"height":13}},{"id":"25dc9299-e2e0-4e60-b9af-a8c6c1b01a46","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over another based","page_number":573,"box":{"x":46,"y":273,"width":891,"height":12}},{"id":"62933e89-5c97-485a-9fc2-c04ad9c4be4d","block_type":"box","text":"on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to generate higher fees paid by","page_number":573,"box":{"x":46,"y":288,"width":904,"height":13}},{"id":"adfceee5-3e84-4165-9496-25232574033f","block_type":"box","text":"one client account over another or to produce greater performance compensation to BlackRock, (iii) to develop or enhance a","page_number":573,"box":{"x":46,"y":304,"width":864,"height":12}},{"id":"eaa872bb-4550-4ac1-b009-37c0b867e636","block_type":"box","text":"relationship with a client or prospective client, (iv) to compensate a client for past services or benefits rendered to BlackRock or to","page_number":573,"box":{"x":45,"y":319,"width":902,"height":13}},{"id":"6bf21337-9add-4599-8209-f9e35d37b9e1","block_type":"box","text":"induce future services or benefits to be rendered to BlackRock,","page_number":573,"box":{"x":45,"y":335,"width":433,"height":12}},{"id":"f0be6ba0-776a-4858-84a1-27ebb97747e6","block_type":"box","text":"or (v) to manage or equalize investment performance among","page_number":573,"box":{"x":484,"y":335,"width":419,"height":12}},{"id":"f5a18ac5-d8fa-4d78-bdc2-2b105c6e512b","block_type":"box","text":"different client accounts.","page_number":573,"box":{"x":46,"y":350,"width":168,"height":10}},{"id":"7847f8a7-877a-4784-a324-75d12d874055","block_type":"box","text":"Because of different objectives or other factors, a particular security may be bought for one or more funds or clients advised by","page_number":573,"box":{"x":46,"y":373,"width":878,"height":13}},{"id":"c025c324-319d-4325-98e0-7f23ddeedde7","block_type":"box","text":"BlackRock or its affiliates (collectively, “clients”) when one or more clients of BlackRock or its affiliates are selling the same","page_number":573,"box":{"x":46,"y":389,"width":859,"height":13}},{"id":"3c57b4dc-adf5-4bd1-b3cf-8f928cc3a748","block_type":"box","text":"security. If purchases or sales of securities arise for consideration at or about the same time that would involve a Fund or other","page_number":573,"box":{"x":46,"y":404,"width":877,"height":13}},{"id":"537592a6-3bc6-4a31-b06d-b443ef34d0b5","block_type":"box","text":"clients or funds for which BlackRock or an affiliate acts as investment manager, transactions in such securities will be made,","page_number":573,"box":{"x":45,"y":420,"width":860,"height":13}},{"id":"3098e811-24f7-447d-b59e-90f01e5df2df","block_type":"box","text":"insofar as feasible, for the respective funds and clients in a manner deemed equitable to all. To the extent that transactions on","page_number":573,"box":{"x":45,"y":435,"width":869,"height":13}},{"id":"6c24625a-77db-49d5-9349-993029bf4702","block_type":"box","text":"behalf of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities being","page_number":573,"box":{"x":46,"y":451,"width":888,"height":13}},{"id":"8442b495-506c-4d10-bc5b-d819dad4af41","block_type":"box","text":"purchased or the supply of securities being sold, there may be an adverse effect on price.","page_number":573,"box":{"x":45,"y":466,"width":609,"height":13}},{"id":"f91991df-dafd-4d41-b483-85697aed01ec","block_type":"box","text":"See “Portfolio Transactions” or “Portfolio Transactions and Brokerage,” as applicable, in Part I of each Fund’s SAI for","page_number":573,"box":{"x":46,"y":490,"width":825,"height":12}},{"id":"b16b7cd9-412a-440d-a0d9-c36ca145ab0b","block_type":"box","text":"information relating to portfolio transactions engaged in by your","page_number":573,"box":{"x":45,"y":505,"width":450,"height":13}},{"id":"ab22692b-4e37-46bb-9add-061721e93608","block_type":"box","text":"Fund for its three most recently completed fiscal years or other","page_number":573,"box":{"x":500,"y":505,"width":434,"height":13}},{"id":"298bf24a-7378-4e85-8240-334017a43fb6","block_type":"box","text":"relevant periods.","page_number":573,"box":{"x":45,"y":521,"width":114,"height":12}},{"id":"1c2248f7-855f-4558-9956-448a3a2daa85","block_type":"box","text":"The Board of each Fund has considered the possibility of seeking to recapture for the benefit of the Fund expenses of possible","page_number":573,"box":{"x":45,"y":544,"width":869,"height":13}},{"id":"537ea114-df93-4790-9fa0-e7bb1a1f5e6a","block_type":"box","text":"portfolio transactions, such as dealer spreads and underwriting commissions, by conducting portfolio transactions through","page_number":573,"box":{"x":45,"y":559,"width":852,"height":13}},{"id":"3cb05193-988d-4d60-afc0-496d90c4a332","block_type":"box","text":"affiliated entities. After considering all factors deemed relevan","page_number":573,"box":{"x":46,"y":575,"width":427,"height":13}},{"id":"644f6913-32e2-440d-aa38-995ebd44eecf","block_type":"box","text":"t, the Board of each Fund made a determination not to seek such","page_number":573,"box":{"x":473,"y":575,"width":450,"height":12}},{"id":"0ea79920-f7d8-4977-a1c2-6147767bcfce","block_type":"box","text":"recapture. The Board of each Fund will reconsider this matter from time to time.","page_number":573,"box":{"x":45,"y":590,"width":559,"height":13}},{"id":"21a6b4e3-cc2a-4be1-951f-d6e2778c03d5","block_type":"box","text":"Each Fund has received an exemptive order from the Commission p","page_number":573,"box":{"x":45,"y":614,"width":471,"height":12}},{"id":"dcccf68d-b296-4224-9885-9b1fa02b005c","block_type":"box","text":"ermitting it to lend portfolio securities to its affiliates. Pursuant","page_number":573,"box":{"x":517,"y":614,"width":435,"height":12}},{"id":"9a042f86-55c8-4d0e-a8f8-d92ca0716b76","block_type":"box","text":"to that order, each Fund may retain an affiliated entity of the Manager (the “lending agent”) as the securities lending agent for a","page_number":573,"box":{"x":45,"y":629,"width":889,"height":13}},{"id":"70285f97-adb2-4a13-878a-963f46d12119","block_type":"box","text":"fee, including a fee based on a share of the returns on investment of cash collateral. The lending agent may, on behalf of a Fund,","page_number":573,"box":{"x":45,"y":645,"width":888,"height":12}},{"id":"6b4af96e-cb96-4146-8de9-26b0df20147b","block_type":"box","text":"invest cash collateral received by the Fund for such loans, among other things, in a private investment company managed by the","page_number":573,"box":{"x":45,"y":660,"width":887,"height":13}},{"id":"116133a1-59ca-421b-8d6b-c276c88e40b2","block_type":"box","text":"lending agent or in registered money market funds advised by the Manager or its affiliates. See “Portfolio Transactions” or","page_number":573,"box":{"x":45,"y":676,"width":852,"height":12}},{"id":"4e9acc11-381c-4e10-984a-1a754dfb9072","block_type":"box","text":"“Portfolio Transactions and Brokerage,” as applicable, in Part I of each Fund’s SAI for the securities lending agent fees, if any,","page_number":573,"box":{"x":47,"y":691,"width":873,"height":13}},{"id":"65bac9ca-7e17-4cad-8918-30b5fc9d51fd","block_type":"box","text":"paid by your Fund to the lending agent for the periods indicated.","page_number":573,"box":{"x":45,"y":707,"width":448,"height":12}},{"id":"ae684b3b-78f9-45ab-a4e1-d4ac7ea999c4","block_type":"box","text":"Because of different objectives or other factors, a particular security may be bought for one or more funds or clients advised by the","page_number":573,"box":{"x":46,"y":730,"width":904,"height":13}},{"id":"8cef7a02-4b91-4a97-bede-5d50017a14b6","block_type":"box","text":"Manager or its affiliates (collectively, “clients”) when one or more clients of the Manager or its affiliates are selling the same","page_number":573,"box":{"x":45,"y":745,"width":862,"height":13}},{"id":"a82490dc-5449-40ee-aaaf-b8ca1eb1e401","block_type":"box","text":"security. If purchases or sales of securities arise for consideration at or about the same time that would involve a Fund or other","page_number":573,"box":{"x":46,"y":761,"width":877,"height":13}},{"id":"0235a495-3577-42b6-840d-bb6faf342fb7","block_type":"box","text":"clients or funds for which the Manager or an affiliate acts as investment manager, transactions in such securities will be made,","page_number":573,"box":{"x":45,"y":776,"width":874,"height":13}},{"id":"f1c9fdf0-7d25-4e3f-b39a-9d5a1b08b02b","block_type":"box","text":"insofar as feasible, for the respective funds and clients in a manner deemed equitable to all. To the extent that transactions on","page_number":573,"box":{"x":45,"y":792,"width":869,"height":13}},{"id":"9946f6db-e9e1-46f3-a826-493723c11fc1","block_type":"box","text":"behalf of more than one client of the Manager or its affiliates during the same period may increase the demand for securities being","page_number":573,"box":{"x":46,"y":807,"width":902,"height":13}},{"id":"d80a657c-d1ae-4b35-a774-a2336a99534a","block_type":"box","text":"purchased or the supply of securities being sold, there may be an adverse effect on price.","page_number":573,"box":{"x":45,"y":823,"width":609,"height":13}},{"id":"b0c2fb26-1669-4d4c-9af8-1c4a90c0810d","block_type":"box","text":"II-56","page_number":573,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"cd6560bb-578d-4906-a623-196db7df0e93","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":573,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"92e9abf9-ec30-4cf4-b783-561b9d39d78e","block_type":"box","text":"D","page_number":574,"box":{"x":415,"y":80,"width":12,"height":9}},{"id":"2b733115-000b-4608-9632-f535fff0792e","block_type":"box","text":"IVIDENDS AND","page_number":574,"box":{"x":428,"y":82,"width":103,"height":7}},{"id":"04ebe241-2b68-41e1-a5e0-aaa6e1f9d346","block_type":"box","text":"T","page_number":574,"box":{"x":536,"y":79,"width":12,"height":10}},{"id":"51818e16-17cc-487a-b383-a242be5f9db5","block_type":"box","text":"AXES","page_number":574,"box":{"x":548,"y":82,"width":35,"height":7}},{"id":"560ee002-e5db-4adc-ac45-0d94f60234b1","block_type":"box","text":"Dividends","page_number":574,"box":{"x":45,"y":105,"width":72,"height":11}},{"id":"e02a7169-e588-49ee-b795-8095dbc5f1c5","block_type":"box","text":"Each Fund declares dividends daily. Except as otherwise provided in a Fund’s Prospectus, dividends of each Fund are reinvested","page_number":574,"box":{"x":45,"y":129,"width":886,"height":13}},{"id":"db0d612b-5b74-433d-81ef-6a754b1d8e6e","block_type":"box","text":"monthly in additional shares of that Fund at NAV. Except as oth","page_number":574,"box":{"x":45,"y":145,"width":452,"height":13}},{"id":"23e12735-9056-48af-830e-514b02684789","block_type":"box","text":"erwise provided in a Fund’s Prospectus, shares purchased will","page_number":574,"box":{"x":497,"y":145,"width":427,"height":13}},{"id":"3e0646ce-f157-4c3c-8205-d2d1757b2ef0","block_type":"box","text":"begin accruing dividends on the day following the date of purcha","page_number":574,"box":{"x":46,"y":160,"width":450,"height":13}},{"id":"a0063b35-1230-4957-833d-0766eae9026b","block_type":"box","text":"se. Until they are paid, dividends that are declared will remain in","page_number":574,"box":{"x":497,"y":160,"width":447,"height":13}},{"id":"df775e51-89b3-451c-89d4-54dca725b456","block_type":"box","text":"the gross assets of each Fund and will therefore continue to earn income for the Fund’s shareholders. Shareholders will receive","page_number":574,"box":{"x":45,"y":176,"width":874,"height":13}},{"id":"59f25bd7-2909-4ab0-b142-62178271e72c","block_type":"box","text":"monthly statements as to such reinvestments.","page_number":574,"box":{"x":45,"y":191,"width":312,"height":13}},{"id":"1059b2ee-2478-4bfe-8d24-31c365645498","block_type":"box","text":"Net income (from the time of the immediately preceding determin","page_number":574,"box":{"x":45,"y":215,"width":457,"height":13}},{"id":"25f7bdda-1f2f-446f-ac69-ff3ab76e70ca","block_type":"box","text":"ation thereof) consists of (i) interest accrued and/or discount","page_number":574,"box":{"x":503,"y":215,"width":417,"height":12}},{"id":"c1aa87d9-7f0b-4e05-a593-4c2222e78918","block_type":"box","text":"earned (including both original issue and market discount), (ii) l","page_number":574,"box":{"x":46,"y":231,"width":441,"height":12}},{"id":"9596a02a-893e-438f-a863-6b01a3ea40c4","block_type":"box","text":"ess amortization of premiums and the estimated expenses of a","page_number":574,"box":{"x":488,"y":231,"width":429,"height":12}},{"id":"85132131-333b-4292-a363-bf35501d21ea","block_type":"box","text":"Fund applicable to that dividend period. Net realized capital gains (including net short-term capital gain), if any, will be","page_number":574,"box":{"x":45,"y":246,"width":830,"height":13}},{"id":"7396f428-bea7-4514-87dc-2daf1e3dbe74","block_type":"box","text":"distributed by the Funds at least annually.","page_number":574,"box":{"x":46,"y":262,"width":289,"height":12}},{"id":"b413d08d-e11d-4bdc-8507-32e948397d30","block_type":"box","text":"Taxes","page_number":574,"box":{"x":45,"y":294,"width":43,"height":10}},{"id":"065c8bbd-e0a9-4b27-9d86-e70f91a40946","block_type":"box","text":"Each Fund intends to elect and to qualify or to continue to qualify, as appropriate, for the special tax treatment afforded regulated","page_number":574,"box":{"x":45,"y":321,"width":904,"height":12}},{"id":"2ebdff2d-3788-4029-9609-b51d20a90f22","block_type":"box","text":"investment companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":574,"box":{"x":45,"y":336,"width":879,"height":13}},{"id":"34e52516-1f6a-41ce-9269-b2329a4926e9","block_type":"box","text":"Federal income tax on the part of its investment company taxable","page_number":574,"box":{"x":45,"y":352,"width":456,"height":12}},{"id":"1e424dec-053e-43d0-a2d4-dd40ef705338","block_type":"box","text":"income and net capital gain that is distributed to shareholders.","page_number":574,"box":{"x":506,"y":352,"width":431,"height":12}},{"id":"c0588d4e-2096-4a42-8f27-a920c460b50e","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 qualify as a","page_number":574,"box":{"x":45,"y":367,"width":863,"height":13}},{"id":"44206a29-f3df-443b-b3d2-fa47fecb82c3","block_type":"box","text":"regulated investment company under the Code, notwithstanding","page_number":574,"box":{"x":45,"y":383,"width":447,"height":12}},{"id":"dcb2ec2e-999c-47f2-aee3-daf96f66a316","block_type":"box","text":"the availability of certain relief provisions, such Fund would be","page_number":574,"box":{"x":497,"y":383,"width":436,"height":12}},{"id":"78333de1-b28c-4724-8090-75e21be4d073","block_type":"box","text":"taxed in the same manner as an ordinary corporation and all distributions from earnings and profits (as determined under Federal","page_number":574,"box":{"x":45,"y":398,"width":902,"height":13}},{"id":"a299b56f-c359-4772-ba92-3576f9e40b2e","block_type":"box","text":"income tax principles) to its shareholders would be taxable as ordi","page_number":574,"box":{"x":45,"y":414,"width":461,"height":12}},{"id":"8a929112-4449-41de-8a24-f304f228ad48","block_type":"box","text":"nary dividend income eligible for taxation at a reduced tax rate","page_number":574,"box":{"x":506,"y":414,"width":438,"height":12}},{"id":"f08262e0-4638-4698-80ee-423dc9d49d36","block_type":"box","text":"for non-corporate shareholders and the dividends","page_number":574,"box":{"x":45,"y":429,"width":343,"height":13}},{"id":"97ad51ae-ac4e-4516-9fe6-ef1a139b408c","block_type":"box","text":"-received deduction for corporate shareholders.","page_number":574,"box":{"x":389,"y":429,"width":326,"height":13}},{"id":"c4de542a-2c53-4169-9ec4-73dc8909b4cc","block_type":"box","text":"Each Fund that is a series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":574,"box":{"x":45,"y":453,"width":908,"height":13}},{"id":"c6c63bde-f3b3-4193-947b-78ffa584bb45","block_type":"box","text":"Federal income tax purposes, and, therefore, is considered to be a sep","page_number":574,"box":{"x":45,"y":468,"width":481,"height":13}},{"id":"47f8ddcd-742e-492d-b590-d2f58d137dc0","block_type":"box","text":"arate entity in determining its treatment under the rules for","page_number":574,"box":{"x":527,"y":468,"width":408,"height":13}},{"id":"68ccf619-bfb3-4787-aa44-2c7f804c141f","block_type":"box","text":"regulated investment companies. Losses in one series of a regulat","page_number":574,"box":{"x":45,"y":484,"width":448,"height":13}},{"id":"ce4ee765-fb18-4918-88c8-e10d05707a57","block_type":"box","text":"ed investment company do not offset gains in another, and the","page_number":574,"box":{"x":494,"y":484,"width":433,"height":13}},{"id":"b5ea5633-a4f2-413f-b79b-833eb10d20e5","block_type":"box","text":"requirements (other than certain organizational requirements","page_number":574,"box":{"x":45,"y":499,"width":423,"height":13}},{"id":"4bb38ebf-d4c0-43d1-9f9a-1637790c90f1","block_type":"box","text":") for qualifying for regulated investment company status will be","page_number":574,"box":{"x":470,"y":499,"width":440,"height":13}},{"id":"d983f5b6-fda4-4546-a2ab-060dfa88e814","block_type":"box","text":"determined at the level of the individual series. In the following discussion, the term “Fund” means each individual series, if","page_number":574,"box":{"x":46,"y":515,"width":856,"height":13}},{"id":"03b484af-a540-4fff-92b0-8fdbf072a9e8","block_type":"box","text":"applicable.","page_number":574,"box":{"x":46,"y":530,"width":73,"height":13}},{"id":"d7fa456b-8bda-4d6a-b217-45c909dbec98","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the regulated investment","page_number":574,"box":{"x":45,"y":554,"width":889,"height":13}},{"id":"5d55e399-f839-4f91-b451-ee86ac85d79a","block_type":"box","text":"company does not distribute, during each calendar year, at least","page_number":574,"box":{"x":45,"y":570,"width":443,"height":13}},{"id":"37e36d0c-710a-49c1-9c64-a03f2d7ebdfa","block_type":"box","text":"98% of its ordinary income, determined on a calendar year basis,","page_number":574,"box":{"x":493,"y":570,"width":453,"height":13}},{"id":"4df65924-57f3-4ffb-804d-a8c1fe4fa1d0","block_type":"box","text":"and at least 98.2% of its capital gain net income, determined, in g","page_number":574,"box":{"x":46,"y":585,"width":456,"height":13}},{"id":"ea8fcede-92aa-4c41-a4dc-c3e307d08bea","block_type":"box","text":"eneral, as if the regulated investment company’s taxable year","page_number":574,"box":{"x":503,"y":585,"width":421,"height":13}},{"id":"0ca99c54-39bb-4877-8a09-4059448c5cb7","block_type":"box","text":"ended on October 31, plus certain undistributed amounts from t","page_number":574,"box":{"x":46,"y":601,"width":446,"height":13}},{"id":"f7303400-efc6-4bbc-aa45-25b5f1a22bd5","block_type":"box","text":"he preceding year. While each Fund intends to distribute its","page_number":574,"box":{"x":493,"y":601,"width":411,"height":13}},{"id":"dc2f589b-a30e-4780-b943-c0fd46201c5a","block_type":"box","text":"income and capital gains in the manner necessary to minimize imposition of the 4% excise tax, there can be no assurance that","page_number":574,"box":{"x":45,"y":616,"width":873,"height":13}},{"id":"72163c60-907c-4a31-9d73-612c8602626a","block_type":"box","text":"sufficient amounts of a Fund’s taxable income and capital gains","page_number":574,"box":{"x":46,"y":632,"width":440,"height":13}},{"id":"f5296327-4594-4a9d-907f-592a632b5758","block_type":"box","text":"will be distributed to avoid entirely the imposition of the tax. In","page_number":574,"box":{"x":491,"y":632,"width":442,"height":13}},{"id":"91e17c14-f9cc-46df-9829-28cbd3c261b0","block_type":"box","text":"such event, a Fund will be liable for the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":574,"box":{"x":46,"y":647,"width":904,"height":13}},{"id":"8719da38-dcfd-45d7-9728-1ccd52ac9cd1","block_type":"box","text":"The required distributions are based only on the taxa","page_number":574,"box":{"x":45,"y":663,"width":369,"height":13}},{"id":"600cc181-e9f5-4a59-a862-6a7c1b8d5886","block_type":"box","text":"ble income of a regulated investment company.","page_number":574,"box":{"x":415,"y":663,"width":326,"height":13}},{"id":"93696568-9a00-4421-a65e-7419d4fe4d5c","block_type":"box","text":"General Treatment of Fund Shareholders.","page_number":574,"box":{"x":46,"y":695,"width":301,"height":13}},{"id":"0956e411-9d31-4b9c-b06a-c27fc999d41c","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-term capital loss","page_number":574,"box":{"x":45,"y":722,"width":905,"height":13}},{"id":"46f547ed-fdc0-455b-9f4c-f512900925db","block_type":"box","text":"(together referred to hereafter as “ordinary income dividends”) are taxable to shareholders as ordinary income. Distributions","page_number":574,"box":{"x":46,"y":737,"width":866,"height":13}},{"id":"8636676d-b232-43f0-8a00-9a84fe272e14","block_type":"box","text":"made from an excess of net long-term capital gain over net short-term capital loss (“capital gain dividends”) are taxable to","page_number":574,"box":{"x":45,"y":753,"width":850,"height":13}},{"id":"dd67ccf6-2653-4a66-86f0-8486ae484153","block_type":"box","text":"shareholders as long-term capital gain, regardless of the length o","page_number":574,"box":{"x":46,"y":768,"width":445,"height":13}},{"id":"015b87b7-0472-4388-b5f5-3ff63be852e7","block_type":"box","text":"f time the shareholder has owned Fund shares. Distributions paid","page_number":574,"box":{"x":492,"y":768,"width":453,"height":13}},{"id":"5618a262-d574-4727-8321-29ebc1449924","block_type":"box","text":"by a Fund that are reported as exempt-interest dividends will not be subject to regular Federal income tax. Certain dividend","page_number":574,"box":{"x":46,"y":784,"width":857,"height":13}},{"id":"b113081d-28f6-4609-9067-1b73aea7791c","block_type":"box","text":"income and long-term capital gains are eligible for taxation at a","page_number":574,"box":{"x":45,"y":799,"width":441,"height":13}},{"id":"586d28fc-b3c2-4d29-83fa-bf6edc703975","block_type":"box","text":"reduced rate that applies to non-corporate shareholders. Under","page_number":574,"box":{"x":491,"y":799,"width":437,"height":13}},{"id":"d3dd0980-2e35-486e-b2fa-df7b12179103","block_type":"box","text":"these rules, the portion of ordinary income dividends cons","page_number":574,"box":{"x":45,"y":815,"width":402,"height":13}},{"id":"52d7b596-7fe8-4933-ba9c-e2ba98a5d14f","block_type":"box","text":"tituting “qualified dividend income” when paid by a regulated","page_number":574,"box":{"x":448,"y":815,"width":433,"height":13}},{"id":"92d54273-99eb-4520-9a3c-15601dd92456","block_type":"box","text":"investment company to non-corporate shareholders may be taxable","page_number":574,"box":{"x":45,"y":830,"width":468,"height":13}},{"id":"7ce16a81-b412-45c1-8d39-3bec124d125f","block_type":"box","text":"to such shareholders at long-term capital gain rates. However,","page_number":574,"box":{"x":518,"y":830,"width":431,"height":13}},{"id":"475fe288-bdf2-40f4-a872-cdf25a6c4e41","block_type":"box","text":"to the extent a Fund’s distributions are derived from income on debt securities and short-term capital gains, such distributions will","page_number":574,"box":{"x":45,"y":846,"width":903,"height":13}},{"id":"7b500fa1-07a2-461f-9257-025da7e0e74c","block_type":"box","text":"not constitute “qualified dividend income.” Thus, ordinary income dividends paid by the Funds generally will not be eligible for","page_number":574,"box":{"x":45,"y":861,"width":888,"height":13}},{"id":"731ba3d4-5aa6-4528-924e-9381df046652","block_type":"box","text":"taxation at the reduced rate.","page_number":574,"box":{"x":45,"y":877,"width":195,"height":10}},{"id":"7ec5efdd-e372-4f65-8ee6-1b83e7a148b1","block_type":"box","text":"II-57","page_number":574,"box":{"x":482,"y":917,"width":35,"height":9}},{"id":"a4460f5f-67b3-46d3-adb0-5c6596620d03","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":574,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"d4a79ed3-90c0-4823-a5cf-4e58b649e6cf","block_type":"box","text":"Any loss upon the sale or exchange of Fund shares held for six months or less will be treated as long-term capital loss to the extent","page_number":575,"box":{"x":45,"y":79,"width":905,"height":13}},{"id":"539a45ba-9ec0-4f92-8b73-8c18f556afa5","block_type":"box","text":"of any capital gain dividends received with respect to the shares. Distributions in excess of a Fund’s earnings and profits will first","page_number":575,"box":{"x":46,"y":94,"width":891,"height":13}},{"id":"fc072782-f6e6-4fcc-b38e-be09360657d3","block_type":"box","text":"reduce the shareholder’s adjusted tax basis in his shares and any amount in excess of such basis will constitute capital gains to","page_number":575,"box":{"x":45,"y":110,"width":873,"height":13}},{"id":"6570f8e0-3173-47cc-9967-c1cd8e489602","block_type":"box","text":"such shareholder (assuming the shares are held as a capital asset). Long-term capital gains (","page_number":575,"box":{"x":46,"y":125,"width":630,"height":13}},{"id":"b3618581-ba50-4523-ae1d-9bf56e47cd20","block_type":"box","text":"i.e.,","page_number":575,"box":{"x":678,"y":126,"width":23,"height":11}},{"id":"b0193769-d120-4955-b530-dc485fdcfc4f","block_type":"box","text":"gains from a sale or exchange of","page_number":575,"box":{"x":706,"y":125,"width":225,"height":13}},{"id":"2dac1366-0d96-44b7-980f-b7622e4cffe5","block_type":"box","text":"capital assets held for more than one year) are generally taxed at preferential rates to non-corporate taxpayers. Each Fund will","page_number":575,"box":{"x":45,"y":141,"width":876,"height":13}},{"id":"9883b3fc-b259-4118-9e4e-d93ec251f767","block_type":"box","text":"furnish its shareholders with a written statement reporting the amounts of its dividends paid during the year that qualify as capital","page_number":575,"box":{"x":45,"y":156,"width":903,"height":13}},{"id":"4cb053f0-1e65-4af8-b581-0c0cb6ea464c","block_type":"box","text":"gain dividends or exempt-interest dividends, as applicable, as well as the portion of an exempt-interest dividend that constitutes an","page_number":575,"box":{"x":45,"y":172,"width":905,"height":13}},{"id":"2589d4bb-c178-4c0c-a6d8-7b8733d86e03","block_type":"box","text":"item of tax preference, as discussed below.","page_number":575,"box":{"x":45,"y":187,"width":294,"height":13}},{"id":"ad3b99b2-2d4d-4589-a43d-524a1c4dd46d","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional shares of a Fund.","page_number":575,"box":{"x":46,"y":211,"width":895,"height":12}},{"id":"5639a2a9-aa6a-442a-9f2d-355c2fe71b45","block_type":"box","text":"Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible for the dividends received","page_number":575,"box":{"x":45,"y":226,"width":884,"height":13}},{"id":"a084cb60-6d74-4be8-babd-4af518e6fc58","block_type":"box","text":"deduction allowed to corporations under the Code. If a Fund pays a dividend in January that was declared in the previous","page_number":575,"box":{"x":46,"y":242,"width":845,"height":12}},{"id":"ebd16674-8a52-4a2b-bf1d-585e8aaeadc1","block_type":"box","text":"October, November or December to shareholders of record on a specified date in one of such months, then such dividend will be","page_number":575,"box":{"x":46,"y":257,"width":893,"height":13}},{"id":"455fe8f4-983d-4942-9c30-89b4d7af8636","block_type":"box","text":"treated for tax purposes as being paid by the Fund and received by its shareholders on December 31 of the year in which such","page_number":575,"box":{"x":45,"y":273,"width":872,"height":12}},{"id":"b05844ec-7d69-4bfb-a116-22814317cce3","block_type":"box","text":"dividend was declared.","page_number":575,"box":{"x":46,"y":288,"width":156,"height":10}},{"id":"984aa415-4805-4ff8-8b01-3c2c27ba94b8","block_type":"box","text":"A shareholder in a money market fund (whether or not it has a floating NAV) may elect to adopt a simplified, aggregate","page_number":575,"box":{"x":45,"y":311,"width":835,"height":13}},{"id":"0b529d9d-9eb7-4c47-8e05-13cb61911fe4","block_type":"box","text":"accounting method under which gains and losses can be netted based on the shareholder’s taxable year rather than reported","page_number":575,"box":{"x":46,"y":327,"width":858,"height":13}},{"id":"7ade3773-f893-4b92-8e9a-faef7c90f5c2","block_type":"box","text":"separately. Shareholders are urged to consult their tax advisors before deciding to adopt such accounting method.","page_number":575,"box":{"x":46,"y":342,"width":786,"height":13}},{"id":"871c5b05-abe0-478d-8e76-2b9c8ec67d38","block_type":"box","text":"If any Fund (other than a Fund that is a government money market fund) imposes a discretionary liquidity fee on share","page_number":575,"box":{"x":45,"y":366,"width":826,"height":12}},{"id":"29d75d27-02b1-4bb2-9bf4-1c3285d500cc","block_type":"box","text":"redemptions, the amount that would ordinarily be payable to a","page_number":575,"box":{"x":45,"y":381,"width":438,"height":13}},{"id":"c6eea02c-40c0-46bd-b727-1df7805b3654","block_type":"box","text":"redeeming shareholder of the Fund will be reduced, consequently","page_number":575,"box":{"x":488,"y":381,"width":452,"height":13}},{"id":"e6956824-c34a-4add-af36-30091ef3ef88","block_type":"box","text":"reducing the amount of gain, or increasing the amount of loss, that would otherwise be reportable for income tax purposes. The","page_number":575,"box":{"x":45,"y":397,"width":889,"height":12}},{"id":"786f7c09-b363-4058-9c2e-07117f5e4510","block_type":"box","text":"discretionary liquidity fee cannot be separately claimed as a deduction.","page_number":575,"box":{"x":46,"y":412,"width":488,"height":13}},{"id":"8697db62-2553-4f26-b43b-7c172be225fe","block_type":"box","text":"Any such discretionary liquidity fee will constitute an asset","page_number":575,"box":{"x":45,"y":435,"width":407,"height":13}},{"id":"dd03602a-a89f-456f-8aa9-5047e6d2f5bb","block_type":"box","text":"of the imposing Fund and will serve to benefit non-redeeming","page_number":575,"box":{"x":457,"y":435,"width":427,"height":13}},{"id":"d403aeac-70f1-4801-8233-17a68fa714c8","block_type":"box","text":"shareholders. If such fees were distributed to non-redeeming share","page_number":575,"box":{"x":46,"y":451,"width":457,"height":13}},{"id":"5cc36693-f37d-4e1e-bc2c-59f0df1570d6","block_type":"box","text":"holders, the tax treatment would be similar to the tax treatment","page_number":575,"box":{"x":504,"y":451,"width":443,"height":12}},{"id":"95f66bb7-0327-43e3-a6ee-283dbb2a5cdd","block_type":"box","text":"of distributions described in this section. Such fees may raise","page_number":575,"box":{"x":46,"y":466,"width":417,"height":13}},{"id":"a9e6ca34-80c6-4af2-8be8-a0ae98356568","block_type":"box","text":"the Fund’s NAV, increasing the taxable income or reducing the","page_number":575,"box":{"x":468,"y":466,"width":438,"height":13}},{"id":"28be5590-efa9-407e-b106-c134538104c1","block_type":"box","text":"deductible losses of shareholders that redeem their shares at a later time when such fees are not being charged. If a Fund receives","page_number":575,"box":{"x":46,"y":482,"width":889,"height":13}},{"id":"4249b531-f322-4c70-b2b1-6b45305737fb","block_type":"box","text":"discretionary liquidity fees, it will consider the appropriate tax t","page_number":575,"box":{"x":46,"y":497,"width":441,"height":13}},{"id":"377bfceb-b243-43d1-94ef-cac870c5c904","block_type":"box","text":"reatment of such fees to the Fund at such time. However, due to a","page_number":575,"box":{"x":488,"y":497,"width":457,"height":13}},{"id":"ecf0c75a-b793-41d4-bfb2-a8a7c89cfb94","block_type":"box","text":"lack of guidance, the tax consequences of liquidity fees to th","page_number":575,"box":{"x":45,"y":513,"width":417,"height":13}},{"id":"7a7eec9d-38c3-407e-acf7-d8dc9cfdc709","block_type":"box","text":"e Fund and the shareholders is unclear and may differ from that","page_number":575,"box":{"x":462,"y":513,"width":443,"height":13}},{"id":"8a59ce55-30f2-417f-925d-b4f261a348e7","block_type":"box","text":"described in this section.","page_number":575,"box":{"x":46,"y":528,"width":167,"height":10}},{"id":"de9de983-cfdc-4bf2-9911-f8a4d9f9e3d7","block_type":"box","text":"Should a negative interest rate scenario ever occur that causes a government or retail money market fund to have a negative gross","page_number":575,"box":{"x":46,"y":552,"width":896,"height":12}},{"id":"331c02c1-6d59-4d60-9951-9c3447bfca87","block_type":"box","text":"yield, the fund may account for the negative gross yield by either using a floating NAV or a reverse distribution mechanism that","page_number":575,"box":{"x":45,"y":567,"width":886,"height":13}},{"id":"89a23218-26b9-4075-ad80-6b02369ff8ed","block_type":"box","text":"seeks to maintain a stable NAV of the fund by cancelling shareholders’ shares in the amount of the negative gross yield. Under a","page_number":575,"box":{"x":46,"y":583,"width":888,"height":12}},{"id":"d6a9a16d-83c3-4bb1-9fcb-d37244fa0145","block_type":"box","text":"reverse distribution mechanism, shareholders in a fund would ob","page_number":575,"box":{"x":45,"y":598,"width":450,"height":12}},{"id":"73b289be-a317-4af1-ad34-53d32bb27674","block_type":"box","text":"serve a stable share price but a declining number of shares for","page_number":575,"box":{"x":497,"y":598,"width":426,"height":13}},{"id":"3a264d0a-5c07-4866-826f-9613da699f8b","block_type":"box","text":"their investment. After a cancellation of shares, the basis of eliminated shares would be added to the basis of shareholders’","page_number":575,"box":{"x":45,"y":614,"width":846,"height":12}},{"id":"ec5bb39e-0b01-4de7-ad8c-f82bf65e19ed","block_type":"box","text":"remaining fund shares, and any shareholders disposing of shares","page_number":575,"box":{"x":45,"y":629,"width":446,"height":13}},{"id":"87efa8a3-712a-44af-b4d5-35fe11dce4a6","block_type":"box","text":"at that time may recognize a capital loss. Dividends, including","page_number":575,"box":{"x":496,"y":629,"width":429,"height":13}},{"id":"2e8ac0a3-ac54-458a-81d2-0ae52a6d35b0","block_type":"box","text":"dividends reinvested in additional shares of a fund, will nonetheless be fully taxable, even if the number of shares in shareholders’","page_number":575,"box":{"x":46,"y":645,"width":895,"height":12}},{"id":"58595c92-9b1e-4d6c-bb10-8eb6f6adb4d5","block_type":"box","text":"accounts has been reduced as described above. However, due to a lack of guidance regarding the cancellation of shares, the tax","page_number":575,"box":{"x":46,"y":660,"width":880,"height":13}},{"id":"8c97f91d-d770-42b9-8ce3-5a4ec8b75770","block_type":"box","text":"consequences of such cancellation of shares to the Fund and the shareholders is unclear and may differ from that described in this","page_number":575,"box":{"x":45,"y":676,"width":898,"height":12}},{"id":"7e90fa65-d6a9-40a9-99cb-e8090bad5034","block_type":"box","text":"section.","page_number":575,"box":{"x":46,"y":692,"width":51,"height":9}},{"id":"7770369e-dd1c-4983-ac39-f41401546d30","block_type":"box","text":"Under certain provisions of the Code, some shareholders may b","page_number":575,"box":{"x":45,"y":714,"width":441,"height":13}},{"id":"b96b924b-895a-4b6b-8ae1-3480374254da","block_type":"box","text":"e subject to a 24% withholding tax on ordinary income dividends","page_number":575,"box":{"x":487,"y":714,"width":456,"height":13}},{"id":"b0bd1e88-8a7f-473a-8184-fe8284eb1561","block_type":"box","text":"and capital gain dividends (“backup withholding”). Generally, s","page_number":575,"box":{"x":46,"y":730,"width":444,"height":13}},{"id":"bbd42cce-2521-424e-98f7-974e23588be6","block_type":"box","text":"hareholders subject to backup withholding will be non-corporate","page_number":575,"box":{"x":491,"y":730,"width":451,"height":13}},{"id":"7e67d9d5-5fa2-4e16-a20a-19c55303ad07","block_type":"box","text":"shareholders for whom no certified taxpayer identification number is on file with a Fund or who, to a Fund’s knowledge, have","page_number":575,"box":{"x":46,"y":745,"width":877,"height":13}},{"id":"5b20b149-2858-468d-8305-72de0f257e2c","block_type":"box","text":"furnished an incorrect number. When establishing an account, an investor must certify under penalty of perjury that such number","page_number":575,"box":{"x":45,"y":761,"width":900,"height":13}},{"id":"091a53a1-78cb-4343-8bb5-bdb97c1ed58c","block_type":"box","text":"is correct and that the investor is not otherwise subject to backup withholding. Backup withholding is not an additional tax. Any","page_number":575,"box":{"x":45,"y":776,"width":895,"height":13}},{"id":"42068a72-fed1-4c76-92fc-bf6c1ea088e1","block_type":"box","text":"amount withheld generally may be allowed as a refund or a credit against a shareholder’s Federal income tax liability provided","page_number":575,"box":{"x":46,"y":792,"width":878,"height":13}},{"id":"57bbfc6a-3117-432a-b313-2f0e56f56dd3","block_type":"box","text":"that the required information is timely provided to the IRS.","page_number":575,"box":{"x":45,"y":807,"width":410,"height":13}},{"id":"4bc8679b-62c8-45ba-add6-95f6fc35a612","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 year or $4 million in","page_number":575,"box":{"x":45,"y":830,"width":887,"height":14}},{"id":"d82b8cc7-7de2-4e78-8a0c-fc5697b250b4","block_type":"box","text":"any combination of taxable years for an individual shareholder or $10 million in any single taxable year or $20 million in any","page_number":575,"box":{"x":46,"y":846,"width":874,"height":13}},{"id":"03d6b59c-3bf9-42d3-9d9d-9019a4e5e433","block_type":"box","text":"combination of taxable years for a corporate shareholder in any single taxable year, the shareholder must file a disclosure","page_number":575,"box":{"x":45,"y":862,"width":843,"height":13}},{"id":"8959a0d2-fe62-4289-a5a3-8f9c5ab8c7d5","block_type":"box","text":"statement on Form 8886 with the IRS. Direct shareholders of por","page_number":575,"box":{"x":46,"y":877,"width":454,"height":13}},{"id":"c9a4a87f-90f9-4c0e-a8d0-c0c2976adcc0","block_type":"box","text":"tfolio securities are in many cases exempted from this reporting","page_number":575,"box":{"x":500,"y":877,"width":439,"height":13}},{"id":"e21b63ba-7f1a-4209-afb4-8a24b3a69409","block_type":"box","text":"II-58","page_number":575,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"45bd5734-a8e1-4b90-8358-fa97acfe4e0f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":575,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"01de189e-54dd-4ca0-89cb-8d5b2d197800","block_type":"box","text":"requirement, but under current guidance, shareholders of a reg","page_number":576,"box":{"x":45,"y":79,"width":435,"height":13}},{"id":"39f344ab-789e-4a35-938a-0bb9adab2fdd","block_type":"box","text":"ulated investment company are not exempted. That a loss is","page_number":576,"box":{"x":481,"y":79,"width":415,"height":13}},{"id":"e986a7bc-3789-40cb-94fa-fe9ef34bf418","block_type":"box","text":"reportable under these regulations does not affect the legal determination of whether the taxpayer’s treatment of the loss is proper.","page_number":576,"box":{"x":45,"y":94,"width":904,"height":13}},{"id":"fbc32d5f-97dc-4849-bf19-4055f2ef2afd","block_type":"box","text":"Shareholders should consult their tax advisors to determine the applicability of these regulations in light of their individual","page_number":576,"box":{"x":46,"y":110,"width":848,"height":13}},{"id":"6aa50e7b-605c-4f88-b295-0ed40fdfed84","block_type":"box","text":"circumstances.","page_number":576,"box":{"x":45,"y":126,"width":100,"height":9}},{"id":"48fd2992-3447-49cc-9c8d-40cc0cce063a","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (wh","page_number":576,"box":{"x":45,"y":149,"width":469,"height":12}},{"id":"8a4cf963-6f6e-4198-868b-8bb512530e22","block_type":"box","text":"ich includes, but is not limited to, interest, dividends and net","page_number":576,"box":{"x":515,"y":149,"width":417,"height":12}},{"id":"098d5f90-798f-48e3-923d-2acb664b99d4","block_type":"box","text":"gains from investments) of U.S. individuals with income ex","page_number":576,"box":{"x":45,"y":164,"width":409,"height":13}},{"id":"8cd9fbcb-d99d-4220-b49f-e7bfd465449d","block_type":"box","text":"ceeding $200,000, or $250,000 if married filing jointly, and of trusts","page_number":576,"box":{"x":454,"y":164,"width":477,"height":13}},{"id":"9d34a50a-3a49-4a13-88e3-58e02f6f24fe","block_type":"box","text":"and estates. However, this tax will not apply to certain amounts that are already excludable from gross income, such as interest on","page_number":576,"box":{"x":46,"y":180,"width":906,"height":12}},{"id":"88c1a36b-33f5-444c-aa1d-0fd5ada0f8d4","block_type":"box","text":"tax-exempt bonds.","page_number":576,"box":{"x":45,"y":195,"width":129,"height":13}},{"id":"6156895e-4da0-4862-8236-93ee3ccc818d","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A shareholder’s tax basis in","page_number":576,"box":{"x":45,"y":218,"width":898,"height":13}},{"id":"099f5c55-dbd6-4054-a4a8-dbf705557d60","block_type":"box","text":"the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax basis in the converted Investor C Shares","page_number":576,"box":{"x":45,"y":234,"width":896,"height":13}},{"id":"9c87613a-bb87-474b-84af-6b461110ddfc","block_type":"box","text":"and the holding period of the acquired Investor A Shares will in","page_number":576,"box":{"x":46,"y":249,"width":440,"height":13}},{"id":"79edb1b2-f24e-4923-81ca-e6bfbf6818ec","block_type":"box","text":"clude the holding period for the converted Investor C Shares.","page_number":576,"box":{"x":487,"y":249,"width":421,"height":13}},{"id":"cc0fe099-116d-4dfa-8dae-e1bfac0a25fe","block_type":"box","text":"Interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between","page_number":576,"box":{"x":45,"y":273,"width":892,"height":12}},{"id":"60ae4c55-334a-402b-8836-371ce889f70c","block_type":"box","text":"certain countries and the United States may reduce or eliminate such taxes.","page_number":576,"box":{"x":45,"y":288,"width":518,"height":13}},{"id":"2044159f-57e1-4766-8eca-e4e8d0946096","block_type":"box","text":"Ordinary income dividends paid to shareholders that are nonresident aliens or foreign entities generally will be subject to a 30%","page_number":576,"box":{"x":46,"y":311,"width":887,"height":13}},{"id":"41682a49-b564-4692-b1d4-fefdcd34db2a","block_type":"box","text":"U.S. withholding tax under existing provisions of the Code applic","page_number":576,"box":{"x":45,"y":327,"width":455,"height":13}},{"id":"52f1a8d1-186b-44e3-8d8c-20405e4a4131","block_type":"box","text":"able to foreign individuals and entities unless a reduced rate of","page_number":576,"box":{"x":501,"y":327,"width":432,"height":13}},{"id":"8f10aa41-ec55-4047-a4fc-92a682199b09","block_type":"box","text":"withholding is provided under applicable treaty law. Nonresident shareholders are urged to consult their own tax advisors","page_number":576,"box":{"x":45,"y":342,"width":849,"height":13}},{"id":"f78a40e3-efad-48ce-af33-1b860f0ca005","block_type":"box","text":"concerning applicability of the United States withholding tax. Div","page_number":576,"box":{"x":45,"y":358,"width":456,"height":13}},{"id":"461004df-a783-4486-a95b-0f11a768bee5","block_type":"box","text":"idends derived by a regulated investment company from short","page_number":576,"box":{"x":501,"y":358,"width":434,"height":13}},{"id":"d25336da-df09-4dbf-8150-705b318d2985","block_type":"box","text":"term capital gains and qualified net interest income (including inco","page_number":576,"box":{"x":45,"y":373,"width":462,"height":13}},{"id":"bbc27690-00dc-4c0f-b279-9278b7dd8500","block_type":"box","text":"me from original issue discount and market discount) and paid","page_number":576,"box":{"x":508,"y":373,"width":436,"height":13}},{"id":"7ffbc167-ac4d-4832-953a-52abe5cb87e4","block_type":"box","text":"to stockholders that are nonresident aliens and foreign entities, if and to the extent properly reported as “interest-related","page_number":576,"box":{"x":45,"y":389,"width":834,"height":13}},{"id":"9da236d0-6aa0-4077-90c1-0b3803e8aec8","block_type":"box","text":"dividends” or “short-term capital gain dividends,” generally will not be subject to U.S. withholding tax. Where possible, each","page_number":576,"box":{"x":46,"y":404,"width":869,"height":13}},{"id":"1099c988-9fa4-40d0-a8a3-5dc34aa9a6e8","block_type":"box","text":"Fund intends to report such dividends as interest-related divide","page_number":576,"box":{"x":45,"y":420,"width":435,"height":13}},{"id":"5dfda215-e1b0-49c0-a460-eded743d25d4","block_type":"box","text":"nds or short-term capital gain dividends. However, depending on its","page_number":576,"box":{"x":481,"y":420,"width":472,"height":13}},{"id":"735cca25-669b-46cc-a078-4d19acfdb7d4","block_type":"box","text":"circumstances, a Fund may report all, some or none of its potentially e","page_number":576,"box":{"x":45,"y":435,"width":488,"height":13}},{"id":"2db8e982-7801-4952-adf1-0e14eb08887a","block_type":"box","text":"ligible dividends as interest-related dividends or as short","page_number":576,"box":{"x":534,"y":435,"width":392,"height":13}},{"id":"47a60bae-3503-43b1-8e42-f3d46b2afcb1","block_type":"box","text":"term capital gain dividends, and/or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In","page_number":576,"box":{"x":45,"y":451,"width":896,"height":13}},{"id":"3ed2c6b1-988c-4b51-b0fd-c4f24891c66b","block_type":"box","text":"order to qualify for this exemption from withholding, a non-U.S. shareholder must comply with applicable certification","page_number":576,"box":{"x":46,"y":466,"width":828,"height":13}},{"id":"f8fe2340-0d6a-4f13-9b67-23c2e496ede1","block_type":"box","text":"requirements relating to its non-U.S. status (including, in g","page_number":576,"box":{"x":45,"y":482,"width":405,"height":13}},{"id":"c4b729e6-350b-4447-84de-7e65963532b6","block_type":"box","text":"eneral, furnishing an IRS Form W-8BEN, W-8BEN-E or substitute","page_number":576,"box":{"x":450,"y":482,"width":462,"height":13}},{"id":"aa2193a8-a3ef-4be1-abf6-9273f2cee20a","block_type":"box","text":"form). In the case of shares held through an intermediary, the in","page_number":576,"box":{"x":45,"y":497,"width":444,"height":13}},{"id":"e960ccc2-aa18-4669-9d9b-c6438a2868d1","block_type":"box","text":"termediary may withhold even if the Fund reports the payment as","page_number":576,"box":{"x":489,"y":497,"width":455,"height":13}},{"id":"cd4d0e42-a6b1-4a89-9dd0-8fbdc2038e65","block_type":"box","text":"an interest-related dividend or short term capital gain dividend.","page_number":576,"box":{"x":46,"y":513,"width":437,"height":13}},{"id":"789a74bf-620d-4024-aeaa-32602bd94edd","block_type":"box","text":"Non-U.S. shareholders should contact their intermediaries with","page_number":576,"box":{"x":489,"y":513,"width":439,"height":10}},{"id":"bc79c72a-ab75-4063-b887-bb7986766730","block_type":"box","text":"respect to the application of these rules to their accounts. It is not possible to predict what portion, if any, of a Fund’s distributions","page_number":576,"box":{"x":45,"y":528,"width":906,"height":13}},{"id":"771b6879-8938-4add-971c-18da0999e309","block_type":"box","text":"will be designated as consisting of qualified short term gain or qualified net interest income exempt from withholding in the hands","page_number":576,"box":{"x":45,"y":544,"width":903,"height":13}},{"id":"eabcc225-3044-426f-ad06-df3f8ea4132d","block_type":"box","text":"of nonresident and foreign shareholders.","page_number":576,"box":{"x":46,"y":559,"width":279,"height":13}},{"id":"a7c0a008-9126-47fc-b4a0-eb7a43bd2713","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S. source dividends, interest and other income items paid to","page_number":576,"box":{"x":46,"y":583,"width":842,"height":12}},{"id":"855fe607-8637-4c07-9dfb-2c00fd559b6d","block_type":"box","text":"(i) certain foreign financial institutions and investment funds, a","page_number":576,"box":{"x":46,"y":598,"width":435,"height":13}},{"id":"1beebc4d-6c93-436e-9f2b-294475f87001","block_type":"box","text":"nd (ii) certain other foreign entities. To avoid withholding, foreign","page_number":576,"box":{"x":482,"y":598,"width":458,"height":13}},{"id":"6d11f04e-684f-4747-b85d-480539dceedc","block_type":"box","text":"financial institutions and investment funds will generally either need to (a) collect and report to the IRS detailed information","page_number":576,"box":{"x":45,"y":614,"width":861,"height":12}},{"id":"5e2c7545-4c61-43ab-add7-b4cb9f66af00","block_type":"box","text":"identifying their U.S. accounts and U.S. account holders, comply","page_number":576,"box":{"x":45,"y":629,"width":447,"height":13}},{"id":"c202e36a-a039-45f8-888f-528372a5ffc0","block_type":"box","text":"with due diligence procedures for identifying U.S. accounts and","page_number":576,"box":{"x":496,"y":629,"width":439,"height":13}},{"id":"cf6b580e-687b-4446-b83a-ad81754cb69f","block_type":"box","text":"withhold tax on certain payments made to noncomplying foreign","page_number":576,"box":{"x":45,"y":645,"width":453,"height":12}},{"id":"1e105a88-c6fb-4349-a245-beefc88c5adf","block_type":"box","text":"entities and account holders or (b) if an intergovernmental","page_number":576,"box":{"x":503,"y":645,"width":404,"height":12}},{"id":"10e1cda2-c749-484a-944c-b4b551ee3250","block_type":"box","text":"agreement is entered into and implementing legislation is adopt","page_number":576,"box":{"x":46,"y":660,"width":438,"height":13}},{"id":"6bc47b95-1c65-4c43-96fe-df210551e814","block_type":"box","text":"ed, comply with the agreement and legislation. 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However, certain states","page_number":576,"box":{"x":46,"y":714,"width":907,"height":13}},{"id":"de827040-ba59-4c3e-b5fe-8540c4a93034","block_type":"box","text":"exempt from state income taxation dividends paid by regulated","page_number":576,"box":{"x":46,"y":730,"width":438,"height":13}},{"id":"ae9046c4-3f88-422c-8461-95b0e9dc4f0d","block_type":"box","text":"investment companies that are derived from interest on United","page_number":576,"box":{"x":489,"y":730,"width":433,"height":13}},{"id":"a5a7d0a6-1071-4964-a670-240c68bc0263","block_type":"box","text":"States Treasury obligations. 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Voting rights are not cumulative, so that the","page_number":577,"box":{"x":46,"y":360,"width":454,"height":13}},{"id":"6d27490a-34ac-45b5-930e-90bc05802365","block_type":"box","text":"holders of more than 50% of the shares voting in the election of","page_number":577,"box":{"x":505,"y":360,"width":445,"height":13}},{"id":"4ec8982b-a281-4730-a39e-7b62889402c9","block_type":"box","text":"Trustees can, if they choose to do so, elect all the Trustees of a F","page_number":577,"box":{"x":45,"y":376,"width":446,"height":13}},{"id":"8fe2d069-96a8-4f63-a2ff-a57d616d11af","block_type":"box","text":"und, in which event the holders of the remaining shares would be","page_number":577,"box":{"x":491,"y":376,"width":453,"height":13}},{"id":"f7a7caca-9eb6-4cd3-95ee-4f79ecf45a42","block_type":"box","text":"unable to elect any person as a Trustee.","page_number":577,"box":{"x":46,"y":391,"width":271,"height":13}},{"id":"75c8a193-a478-434a-ae6a-895c72624ddd","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does not require","page_number":577,"box":{"x":45,"y":415,"width":870,"height":12}},{"id":"4f779a51-f25d-4790-9ae0-a9def8f83458","block_type":"box","text":"shareholders to act upon any of the following matters: (i) el","page_number":577,"box":{"x":46,"y":430,"width":411,"height":13}},{"id":"b4822606-3453-40a4-966b-3d13d8ac760c","block_type":"box","text":"ection of Trustees; (ii) approval of a management agreement;","page_number":577,"box":{"x":458,"y":430,"width":422,"height":13}},{"id":"ef0cd262-4f75-4e50-b606-b42846077303","block_type":"box","text":"(iii) approval of a distribution agreement; and (iv) ratification of","page_number":577,"box":{"x":46,"y":446,"width":445,"height":13}},{"id":"d11f93e6-3ad9-41a1-8561-f604f03eefe7","block_type":"box","text":"selection of independent accountants. Shares issued are fully paid","page_number":577,"box":{"x":495,"y":446,"width":451,"height":13}},{"id":"eb675bca-4bdd-4f24-874f-296b83600638","block_type":"box","text":"and non-assessable and have no preemptive rights. Redemption and conversion rights are discussed elsewhere herein and in each","page_number":577,"box":{"x":46,"y":461,"width":891,"height":13}},{"id":"99684014-8209-4418-8cc9-c490c1893c8c","block_type":"box","text":"Fund’s Prospectus. Each share of each class of Common Stock is entitled to participate equally in dividends and distributions","page_number":577,"box":{"x":45,"y":477,"width":865,"height":13}},{"id":"be17ce81-09f8-4e28-ad45-cba68cbddd9f","block_type":"box","text":"declared by a Fund and in the net assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":577,"box":{"x":46,"y":492,"width":875,"height":13}},{"id":"72698087-60de-4cfb-861b-558d123172d8","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of shareholders be held","page_number":577,"box":{"x":45,"y":515,"width":875,"height":13}},{"id":"e73e36d4-a893-4d4e-8b5b-f46f744049a1","block_type":"box","text":"upon the written request of a minimum percentage of the outstanding shares of the Fund entitled to vote at such meeting, if they","page_number":577,"box":{"x":46,"y":531,"width":889,"height":13}},{"id":"c1ab0b2a-89e8-4a26-b672-8e4c9a98bf02","block_type":"box","text":"comply with applicable Maryland law.","page_number":577,"box":{"x":45,"y":546,"width":269,"height":13}},{"id":"17f3784b-f700-4d86-92bc-d1ac9efa2ed4","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business tr","page_number":577,"box":{"x":46,"y":570,"width":450,"height":13}},{"id":"ac63b28b-19fd-4073-84cd-54f2d67602ae","block_type":"box","text":"usts.” Under Massachusetts law, shareholders of such a trust","page_number":577,"box":{"x":497,"y":570,"width":422,"height":12}},{"id":"c915e78b-2229-4733-9d2b-9c99a952bfbc","block_type":"box","text":"may, under certain circumstances, be held personally liable as par","page_number":577,"box":{"x":45,"y":585,"width":455,"height":13}},{"id":"d752aea9-ef5a-4a66-9c8f-9d007572bbb4","block_type":"box","text":"tners for its obligations. However, the Declaration of Trust","page_number":577,"box":{"x":500,"y":585,"width":410,"height":13}},{"id":"a9f5d06e-6b13-4ff9-956e-a934e6ffa889","block_type":"box","text":"establishing a trust, a copy of which for each applicable Fund, to","page_number":577,"box":{"x":46,"y":601,"width":448,"height":13}},{"id":"ba27402f-9345-4e14-90fa-53fe6f6d19cf","block_type":"box","text":"gether with all amendments thereto (the “Declaration of Trust”),","page_number":577,"box":{"x":494,"y":601,"width":451,"height":13}},{"id":"1a64a85a-97c1-46b4-98b4-fe80849009ec","block_type":"box","text":"is on file in the office of the Secretary of the Commonwealth of Massachusetts, contains an express disclaimer of shareholder","page_number":577,"box":{"x":45,"y":616,"width":866,"height":13}},{"id":"2de4d31c-01e8-4a39-8528-a74856ff542c","block_type":"box","text":"liability for acts or obligations of the trust and provides for","page_number":577,"box":{"x":45,"y":632,"width":409,"height":13}},{"id":"9a70dd09-019a-4322-a420-d193619f5f13","block_type":"box","text":"indemnification and reimbursement of expenses out of the trust","page_number":577,"box":{"x":459,"y":632,"width":440,"height":13}},{"id":"3f667ae1-5176-4916-a3fb-8c70de8e6edd","block_type":"box","text":"property for any shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a","page_number":577,"box":{"x":45,"y":647,"width":887,"height":13}},{"id":"6aef3f6c-a8fd-4d92-a66a-d1421ad69fe5","block_type":"box","text":"trust may maintain appropriate insurance (for example, fide","page_number":577,"box":{"x":45,"y":663,"width":416,"height":13}},{"id":"b3a22384-fe6c-4da0-944e-5233e59ef4e8","block_type":"box","text":"lity bond and errors and omissions insurance) for the protection of the","page_number":577,"box":{"x":462,"y":663,"width":488,"height":13}},{"id":"8bc78f8c-7558-40f3-867f-453550f02ebd","block_type":"box","text":"trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities. Thus, the risk of a","page_number":577,"box":{"x":45,"y":678,"width":856,"height":13}},{"id":"8ecab495-e29e-41e0-8f08-c3a65c92c3e0","block_type":"box","text":"shareholder incurring financial loss on account of shareholde","page_number":577,"box":{"x":46,"y":694,"width":422,"height":13}},{"id":"ea7aeb8d-1a4a-4a9a-b356-873a065f6e14","block_type":"box","text":"r liability is limited to circumstances in which both inadequate","page_number":577,"box":{"x":469,"y":694,"width":431,"height":13}},{"id":"f0b5b57c-5f53-42c3-b90f-24feab809e2a","block_type":"box","text":"insurance existed and the trust itself was unable to meet its obligations.","page_number":577,"box":{"x":45,"y":709,"width":492,"height":13}},{"id":"b99ce2e1-505d-4ca2-b933-4829aa0e157e","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":577,"box":{"x":46,"y":733,"width":399,"height":12}},{"id":"a00f5b64-d7ff-4294-b374-70ae0f6534bf","block_type":"box","text":"Additional Information","page_number":577,"box":{"x":45,"y":764,"width":170,"height":10}},{"id":"f82c629e-4c17-4d44-ba67-6cca056e462f","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and has reserved the","page_number":577,"box":{"x":45,"y":789,"width":881,"height":13}},{"id":"8be32a37-103a-4b6a-8b95-557a4f598899","block_type":"box","text":"right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain BlackRock Advisors, LLC or","page_number":577,"box":{"x":45,"y":805,"width":858,"height":13}},{"id":"1991aa6d-2526-45e0-bee2-63de07b42cea","block_type":"box","text":"BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of such name to any other company.","page_number":577,"box":{"x":46,"y":820,"width":859,"height":13}},{"id":"8e14591d-cc6a-4d69-96ed-26e3e0a1999b","block_type":"box","text":"II-60","page_number":577,"box":{"x":482,"y":917,"width":34,"height":9}},{"id":"43014814-858e-4869-a7d3-7d5c326f7e65","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":577,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3d0939f5-1c9e-4cdc-83ea-ce45c059ad1a","block_type":"box","text":"APPENDIX A","page_number":578,"box":{"x":448,"y":79,"width":103,"height":10}},{"id":"e0360b6c-a5a5-4087-9603-11e253001f09","block_type":"box","text":"Description of Bond Ratings","page_number":578,"box":{"x":396,"y":102,"width":207,"height":13}},{"id":"68e23d5e-92b5-4c30-902d-ca9be9b06790","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the tim","page_number":578,"box":{"x":45,"y":131,"width":457,"height":13}},{"id":"f8b59f05-ebdc-4d76-9b36-7a3c1d235115","block_type":"box","text":"e of issuance by a credit rating agency designated as a nationally","page_number":578,"box":{"x":502,"y":131,"width":445,"height":13}},{"id":"e75a0957-1fc2-460a-a9a2-fe7cf078238e","block_type":"box","text":"recognized statistical rating organization (“NRSRO”) by the SEC","page_number":578,"box":{"x":45,"y":146,"width":454,"height":13}},{"id":"bceb35a6-2e71-4e5b-ae54-e3ab5d1f3b6f","block_type":"box","text":". While NRSROs may from time to time revise such ratings, they","page_number":578,"box":{"x":501,"y":146,"width":449,"height":13}},{"id":"519a28c7-7195-439a-8eb2-d33cfad5dda3","block_type":"box","text":"undertake no obligation to do so, and the ratings given to secu","page_number":578,"box":{"x":46,"y":162,"width":433,"height":13}},{"id":"55d568fd-3111-4d38-84f5-14437dab0206","block_type":"box","text":"rities at issuance do not necessarily represent ratings which would","page_number":578,"box":{"x":479,"y":162,"width":456,"height":13}},{"id":"fc08b63c-b029-4ac7-976f-19de4dbfe9c1","block_type":"box","text":"be given to these securities on a particular subsequent date.","page_number":578,"box":{"x":46,"y":177,"width":408,"height":13}},{"id":"d3e5b854-5112-406c-b858-fd5d6d4ba06b","block_type":"box","text":"NRSROs may rate specific investments (e.g., bonds), issuers (e.g","page_number":578,"box":{"x":45,"y":201,"width":445,"height":13}},{"id":"e03eabee-71a0-4597-b752-299753f8b4f7","block_type":"box","text":"., corporations, governments and financial institutions) and/or","page_number":578,"box":{"x":491,"y":201,"width":430,"height":13}},{"id":"bbcf8760-81ae-4477-af22-b138c96c9cfe","block_type":"box","text":"programs (e.g., commercial paper programs). However, certain t","page_number":578,"box":{"x":45,"y":216,"width":448,"height":13}},{"id":"62159524-19ec-459e-b35f-15eedda96c38","block_type":"box","text":"ypes of investments may not be rated by NRSROs, such as certain","page_number":578,"box":{"x":494,"y":216,"width":459,"height":13}},{"id":"bd526778-fa26-4c21-ac0d-7e04d8682f76","block_type":"box","text":"government/sovereign obligations, US agency securities, commerci","page_number":578,"box":{"x":45,"y":232,"width":459,"height":13}},{"id":"9e49dad5-46fe-4a27-8354-18494e9a00dc","block_type":"box","text":"al paper, time deposits at financial institutions, and derivative","page_number":578,"box":{"x":505,"y":232,"width":426,"height":13}},{"id":"9a2edf4e-29e8-4847-ace0-1d86e56272cd","block_type":"box","text":"instruments such as credit default swaps. For these types of investments, as well as US Treasury securities (some of which are not","page_number":578,"box":{"x":45,"y":247,"width":893,"height":13}},{"id":"3126c2e3-510a-462d-ad66-d411e87a1e9a","block_type":"box","text":"rated), where a NRSRO has not rated the specific investment but has rated the investment’s issuer, program, financial institution","page_number":578,"box":{"x":45,"y":263,"width":892,"height":13}},{"id":"2265b2da-8a18-4acd-972d-be029dae522f","block_type":"box","text":"or underlying reference asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”)","page_number":578,"box":{"x":46,"y":278,"width":876,"height":13}},{"id":"a0221e7f-49e7-4b72-ab40-3eb1743d54aa","block_type":"box","text":"may consider the investment to have the same NRSRO rating as its","page_number":578,"box":{"x":45,"y":294,"width":466,"height":13}},{"id":"c15e7c0f-328a-4847-b4df-bbb323092835","block_type":"box","text":"issuer, program, financial institution or underlying reference","page_number":578,"box":{"x":516,"y":294,"width":417,"height":13}},{"id":"730a97b2-847c-4a7b-8212-9d5b7d007388","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where","page_number":578,"box":{"x":46,"y":309,"width":422,"height":13}},{"id":"e88031a3-5a7a-459e-8136-bb8ffa9eb7c3","block_type":"box","text":"one NRSRO provides multiple ratings for the same security (e.g.,","page_number":578,"box":{"x":474,"y":309,"width":450,"height":13}},{"id":"f8f77022-c4fc-4696-80ee-50f109e7db8e","block_type":"box","text":"“underlying,” “insured” and/or “enhanced” ratings), BlackRoc","page_number":578,"box":{"x":47,"y":325,"width":438,"height":13}},{"id":"84b849b7-3252-4f06-9dc7-66b1da234880","block_type":"box","text":"k may consider the security to have the highest of the multiple","page_number":578,"box":{"x":486,"y":325,"width":430,"height":13}},{"id":"83efb930-5390-4e8e-8446-e27dfb859c26","block_type":"box","text":"ratings.","page_number":578,"box":{"x":45,"y":341,"width":51,"height":12}},{"id":"7579cef7-f101-4813-87a5-9e14ca0c16de","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial offering. Preliminary","page_number":578,"box":{"x":45,"y":364,"width":821,"height":13}},{"id":"b6898930-8a18-441a-beba-3790c51757b1","block_type":"box","text":"prospectuses or term sheets for new issue securities may incl","page_number":578,"box":{"x":45,"y":379,"width":416,"height":13}},{"id":"ed54adb9-0259-4d95-a4b4-bc46b1518a31","block_type":"box","text":"ude an expected rating for the security (as determined by the","page_number":578,"box":{"x":462,"y":379,"width":419,"height":13}},{"id":"9a3365aa-1817-4bce-a5ad-a5955c560340","block_type":"box","text":"underwriter and/or issuer) or a NRSRO rating for the issuer of the security. If applicable, when deciding whether to purchase a","page_number":578,"box":{"x":46,"y":395,"width":880,"height":13}},{"id":"6aa40059-c014-4080-9e13-d8c5d215bcbb","block_type":"box","text":"new issue security that has not yet been rated by a NRSRO, BlackRock may attribute an expected rating to the security based on:","page_number":578,"box":{"x":45,"y":410,"width":898,"height":13}},{"id":"5293cb05-e267-429f-96dc-c9bc16dbfff8","block_type":"box","text":"(i) the expected rating of the security set forth in the preliminary p","page_number":578,"box":{"x":46,"y":426,"width":457,"height":13}},{"id":"4a854c5a-4289-47f0-a120-650f3baa6810","block_type":"box","text":"rospectus or term sheet for the security; (ii) the NRSRO’s rating","page_number":578,"box":{"x":504,"y":426,"width":442,"height":13}},{"id":"7e6099ea-0a85-4728-a748-958484297287","block_type":"box","text":"for the issuer of the security set forth in the preliminary pro","page_number":578,"box":{"x":45,"y":441,"width":412,"height":13}},{"id":"4d6cbb2a-0cf4-41ad-9396-e580556ea713","block_type":"box","text":"spectus or term sheet for the security; or (iii) with respect to asset","page_number":578,"box":{"x":458,"y":441,"width":455,"height":13}},{"id":"6c6ba229-1f4f-486e-a5e6-b877522ae2c9","block_type":"box","text":"backed securities, the rating of a prior issuance","page_number":578,"box":{"x":46,"y":457,"width":323,"height":13}},{"id":"a367e491-0ee4-4a26-87b9-d2548245cf57","block_type":"box","text":"having a similar structure or the same sponsor.","page_number":578,"box":{"x":374,"y":457,"width":324,"height":13}},{"id":"d0f8b991-015b-4fbf-be64-7357290a435d","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings eligibility criteria as","page_number":578,"box":{"x":45,"y":480,"width":888,"height":13}},{"id":"d4386b47-aa98-424b-8283-df7cb35f4d39","block_type":"box","text":"part of its index methodology, the fund may purchase any security within the index, such security having been determined by the","page_number":578,"box":{"x":45,"y":496,"width":895,"height":13}},{"id":"bbd74d85-8007-48b5-ad48-2776f1b98747","block_type":"box","text":"index provider as meeting its credit ratings eligibility criteria. The credit ratings practices of an index provider may differ from","page_number":578,"box":{"x":45,"y":511,"width":874,"height":13}},{"id":"8e523e02-7ddd-4005-8217-a14ad673efeb","block_type":"box","text":"BlackRock’s practices, as described above. Further, the fund may invest, directly or indirectly, in securities that are not rated by a","page_number":578,"box":{"x":46,"y":527,"width":894,"height":13}},{"id":"8f4fc93d-e581-4e8e-8cf3-082201313dff","block_type":"box","text":"rating agency or securities with a credit rating that differs from the credit rating specified in its index methodology in various","page_number":578,"box":{"x":45,"y":542,"width":865,"height":13}},{"id":"19efd9d7-5616-4166-8be7-a1ce9dcda59a","block_type":"box","text":"circumstances, including where a security is downgraded but not yet removed from an index, following the removal of a security","page_number":578,"box":{"x":45,"y":558,"width":892,"height":13}},{"id":"9ee29d60-0195-4866-89b2-41171b2872ec","block_type":"box","text":"from an index prior to its sale by the fund or as a result of a corporate action or restructuring affecting an issuer of a security held","page_number":578,"box":{"x":45,"y":573,"width":900,"height":13}},{"id":"f85c2f22-de04-435d-9537-a314bcfbca12","block_type":"box","text":"by the fund.","page_number":578,"box":{"x":46,"y":589,"width":82,"height":13}},{"id":"1c0ae976-fb20-44d7-a7a6-b6271ebc577b","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay interest or repay","page_number":578,"box":{"x":45,"y":612,"width":854,"height":13}},{"id":"e2a399eb-9c56-4940-969d-314e3814e1dc","block_type":"box","text":"principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these securities is dependent on","page_number":578,"box":{"x":45,"y":628,"width":820,"height":12}},{"id":"b02c06b9-fd42-4f2b-861e-7457d2f593a9","block_type":"box","text":"BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":578,"box":{"x":46,"y":643,"width":573,"height":13}},{"id":"3cc9caa9-e6b1-4c61-96e7-aa1aabee386a","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 recent developments","page_number":578,"box":{"x":45,"y":667,"width":900,"height":12}},{"id":"fcfeb72a-b9a8-4e85-aec4-0aa0cc0c7084","block_type":"box","text":"on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":578,"box":{"x":46,"y":682,"width":645,"height":13}},{"id":"06d91426-ca15-45a5-9e80-fa8fdb0a6194","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 Fitch.","page_number":578,"box":{"x":46,"y":706,"width":831,"height":12}},{"id":"0fc95a0d-7cad-4b55-a038-5a88a92b593e","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":578,"box":{"x":45,"y":729,"width":626,"height":13}},{"id":"0991cd22-decb-4363-99b4-678b9c4c6016","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":578,"box":{"x":45,"y":758,"width":618,"height":13}},{"id":"eae1150c-94d5-4e26-9bad-daca1b6ba520","block_type":"box","text":"Ratings assigned on Moody’s global long-term and short-term rating scales are forward-looking opinions of the relative credit","page_number":578,"box":{"x":46,"y":784,"width":874,"height":13}},{"id":"5d99bb9a-1810-4332-b64c-efbe32725035","block_type":"box","text":"risks of financial obligations issued by non-financial corporates,","page_number":578,"box":{"x":45,"y":799,"width":442,"height":13}},{"id":"73f76f30-d78b-4318-9689-30917d27148c","block_type":"box","text":"financial institutions, structured finance vehicles, project finance","page_number":578,"box":{"x":493,"y":799,"width":444,"height":13}},{"id":"39d76c69-e685-4d75-b0ca-617a43890de9","block_type":"box","text":"vehicles, and public sector entities. Moody’s defines credit risk as th","page_number":578,"box":{"x":45,"y":815,"width":469,"height":13}},{"id":"c51909f6-b9d4-428e-82f6-6e32588b5019","block_type":"box","text":"e risk that an entity may not meet its contractual financial","page_number":578,"box":{"x":515,"y":815,"width":400,"height":13}},{"id":"64598111-8423-45be-bd51-d0e08b4cc738","block_type":"box","text":"obligations as they come due and any estimated financial loss in th","page_number":578,"box":{"x":46,"y":830,"width":461,"height":13}},{"id":"d49679f5-754e-41c3-9603-0e36ae2f6c76","block_type":"box","text":"e event of default or impairment. The contractual financial","page_number":578,"box":{"x":507,"y":830,"width":407,"height":13}},{"id":"95759923-d2cf-4aa2-bbdf-a17c7c169329","block_type":"box","text":"obligations addressed by Moody’s ratings are those that call for, without regard to enforceability, the payment of an ascertainable","page_number":578,"box":{"x":46,"y":846,"width":900,"height":13}},{"id":"9e392bb8-22cb-418b-8753-003df7e13800","block_type":"box","text":"amount, which may vary based upon standard sources of variation (e.g., floating interest rates), by an ascertainable date. Moody’s","page_number":578,"box":{"x":46,"y":861,"width":904,"height":13}},{"id":"a90c153f-215b-481d-bd62-0acc0cf74029","block_type":"box","text":"rating addresses the issuer’s ability to obtain cash sufficient to serv","page_number":578,"box":{"x":45,"y":877,"width":460,"height":13}},{"id":"bd3d7c6a-e7bc-41c0-8d77-587f2568a097","block_type":"box","text":"ice the obligation, and its willingness to pay. Moody’s ratings do","page_number":578,"box":{"x":505,"y":877,"width":448,"height":13}},{"id":"f702a1ca-e9c3-4aed-ad91-6039f91deb78","block_type":"box","text":"A-1","page_number":578,"box":{"x":486,"y":916,"width":25,"height":10}},{"id":"4f4be393-7e39-4eac-b8e0-f6e11de4a54b","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":578,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"3f9d91a5-0a73-48d5-9eeb-6274d8854bc0","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (e.g., equity indexed), absent an express","page_number":579,"box":{"x":45,"y":79,"width":886,"height":13}},{"id":"f29f5d31-0bd2-4d06-ac1b-d9072ca64f2b","block_type":"box","text":"statement to the contrary in a press release accompanying an initia","page_number":579,"box":{"x":46,"y":94,"width":460,"height":13}},{"id":"12b40942-573a-4a8c-a5c5-776e8eb2d60a","block_type":"box","text":"l rating. Long-term ratings are assigned to issuers or obligations","page_number":579,"box":{"x":507,"y":94,"width":441,"height":13}},{"id":"f0c7e10a-e357-4181-b34e-1b226519d613","block_type":"box","text":"with an original maturity of one year or more and reflect both on the likelihood of a default or impairment on contractual","page_number":579,"box":{"x":45,"y":110,"width":848,"height":13}},{"id":"686314e5-e475-4be1-b5fa-6c2340bd65b4","block_type":"box","text":"financial obligations and the expected financial loss suffered in th","page_number":579,"box":{"x":45,"y":125,"width":453,"height":13}},{"id":"da682500-1e30-44d0-b156-a4f8247fb2d8","block_type":"box","text":"e event of default or impairment. Short-term ratings are assigned","page_number":579,"box":{"x":499,"y":125,"width":448,"height":13}},{"id":"03ea7f92-7e4f-4c0c-bbe5-d7fae670b7cc","block_type":"box","text":"for obligations with an original maturity of thirteen months or less and reflect both on the likelihood of a default or impairment","page_number":579,"box":{"x":45,"y":141,"width":887,"height":13}},{"id":"f6e3af9c-aadd-477e-8ceb-4d8744e20782","block_type":"box","text":"on contractual financial obligations and the expected financial","page_number":579,"box":{"x":46,"y":156,"width":431,"height":13}},{"id":"85604deb-15e5-4bad-a375-001d1d42ed85","block_type":"box","text":"loss suffered in the event of default or impairment. Moody’s issues","page_number":579,"box":{"x":482,"y":156,"width":460,"height":13}},{"id":"3aa39b17-7b99-4113-8476-450796c764af","block_type":"box","text":"ratings at the issuer level and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made","page_number":579,"box":{"x":45,"y":172,"width":879,"height":13}},{"id":"a477d1d4-dd0a-4791-b5c1-48843da38dac","block_type":"box","text":"publicly available although private and unpublished ratings may also be assigned.","page_number":579,"box":{"x":45,"y":187,"width":565,"height":13}},{"id":"d8ddcf36-7182-440a-bdfc-5d7cb09f17f6","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundament","page_number":579,"box":{"x":45,"y":211,"width":456,"height":12}},{"id":"02fc7a33-44e3-4ad4-bbb3-80b0ffffb76a","block_type":"box","text":"al ratings (i.e., ratings on nonfinancial corporate, financial","page_number":579,"box":{"x":502,"y":211,"width":403,"height":12}},{"id":"a907539c-ba6a-4613-bee8-3514c578d9ae","block_type":"box","text":"institution, and public sector entities) on the global long-term scale by","page_number":579,"box":{"x":45,"y":226,"width":484,"height":13}},{"id":"1112bd63-1f05-433c-ba15-dddb1e7a51e3","block_type":"box","text":"adding (sf) to all structured finance ratings. The addition of","page_number":579,"box":{"x":534,"y":226,"width":413,"height":13}},{"id":"0b3ec30b-7eda-4ba2-9546-560b74c6e768","block_type":"box","text":"(sf) to structured finance ratings should eliminate any presumptio","page_number":579,"box":{"x":46,"y":242,"width":452,"height":12}},{"id":"b30684b8-cb18-4252-985f-44ac691e4a8d","block_type":"box","text":"n that such ratings and fundamental ratings at the same letter","page_number":579,"box":{"x":499,"y":242,"width":426,"height":12}},{"id":"72d9a0c0-74fd-4488-8292-afc7a16f074f","block_type":"box","text":"grade level will behave the same. The (sf) indicator for structured","page_number":579,"box":{"x":45,"y":257,"width":452,"height":13}},{"id":"8a350480-c660-49ae-85d1-455defea3212","block_type":"box","text":"finance security ratings indicates that otherwise similarly rated","page_number":579,"box":{"x":502,"y":257,"width":432,"height":13}},{"id":"3c51ca7e-aa60-4b25-b157-b6cc0ea8272f","block_type":"box","text":"structured finance and fundamental securities may have different risk characteristics. Through its current methodologies, however,","page_number":579,"box":{"x":46,"y":273,"width":904,"height":12}},{"id":"fb341108-9a49-418f-81ab-a10a6735410e","block_type":"box","text":"Moody’s aspires to achieve broad expected equivalence in structured finance and fundamental rating performance when measured","page_number":579,"box":{"x":45,"y":288,"width":905,"height":13}},{"id":"32919571-874b-4b9a-9815-d947dfeeb170","block_type":"box","text":"over a long period of time.","page_number":579,"box":{"x":46,"y":304,"width":183,"height":12}},{"id":"872e2b4f-d037-4da5-a31e-a8062c1471a2","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":579,"box":{"x":45,"y":332,"width":410,"height":13}},{"id":"15930cd7-0ded-47da-8dcf-f080677d4a3b","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk.","page_number":579,"box":{"x":45,"y":357,"width":890,"height":12}},{"id":"46df778d-6f1b-45f2-974c-0c2452032ee0","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":579,"box":{"x":45,"y":376,"width":820,"height":13}},{"id":"518ab23f-7978-4c86-87c0-4b8683e3b295","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":579,"box":{"x":45,"y":395,"width":821,"height":13}},{"id":"9cec6ec1-1eed-434e-a164-215f8d5125df","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as such","page_number":579,"box":{"x":46,"y":415,"width":887,"height":12}},{"id":"b08ed246-76cd-4abb-ac61-ddd16a6d2b0a","block_type":"box","text":"may possess certain speculative characteristics.","page_number":579,"box":{"x":197,"y":429,"width":337,"height":13}},{"id":"613f9b73-318a-44ba-8e0c-a952df2b8e9f","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":579,"box":{"x":46,"y":448,"width":806,"height":13}},{"id":"5ed05cb4-6a5d-46a0-abae-04783a6cf61d","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":579,"box":{"x":46,"y":468,"width":739,"height":12}},{"id":"10c923ba-99b7-4a21-90d7-bbd02d8d25f2","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit","page_number":579,"box":{"x":46,"y":487,"width":895,"height":13}},{"id":"fd3cc969-8551-4e9c-8422-b5204d3bc918","block_type":"box","text":"risk.","page_number":579,"box":{"x":197,"y":501,"width":30,"height":10}},{"id":"10a94639-fdfd-4054-85f2-33708a406421","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect","page_number":579,"box":{"x":46,"y":521,"width":894,"height":12}},{"id":"4ccf0db9-a5c9-4ecc-8cfe-ac2d38b88052","block_type":"box","text":"of recovery of principal and interest.","page_number":579,"box":{"x":197,"y":535,"width":263,"height":13}},{"id":"53b06d66-a844-43d4-a410-5f7130008aea","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery of","page_number":579,"box":{"x":46,"y":554,"width":902,"height":13}},{"id":"540c40b6-cf92-461f-9f77-dc0a3835e546","block_type":"box","text":"principal or interest.","page_number":579,"box":{"x":197,"y":568,"width":146,"height":13}},{"id":"7be855ca-ef0b-4bd8-b444-582e2fbfc16e","block_type":"box","text":"Note","page_number":579,"box":{"x":45,"y":593,"width":35,"height":9}},{"id":"546fb300-4202-4476-a913-ccbf2a711fb7","block_type":"box","text":": Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1","page_number":579,"box":{"x":81,"y":592,"width":868,"height":12}},{"id":"a12455cc-c421-419c-8c6d-a3913c1d8a70","block_type":"box","text":"indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking;","page_number":579,"box":{"x":45,"y":607,"width":881,"height":13}},{"id":"826e5b91-0977-44c6-bfc8-3b0cf29f90fc","block_type":"box","text":"and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a “(hyb)” indicator is","page_number":579,"box":{"x":46,"y":623,"width":847,"height":13}},{"id":"ebf9b97c-4d2a-40ca-8a78-417c3cb79992","block_type":"box","text":"appended to all ratings of hybrid securities issued by banks, insurers, finance companies, and securities firms.","page_number":579,"box":{"x":46,"y":638,"width":754,"height":13}},{"id":"ca5d78d6-a012-4424-b272-bf4775689669","block_type":"box","text":"By their terms, hybrid securities allow for the omission of sche","page_number":579,"box":{"x":46,"y":661,"width":431,"height":13}},{"id":"bf797b99-3e3e-4a13-bbd8-9ed65763e4c9","block_type":"box","text":"duled dividends, interest, or principal payments, which can","page_number":579,"box":{"x":478,"y":661,"width":408,"height":13}},{"id":"5327bd38-dd84-498e-ab0a-de72939a41e8","block_type":"box","text":"potentially result in impairment if such an omission occurs. Hybrid","page_number":579,"box":{"x":45,"y":677,"width":465,"height":13}},{"id":"9c09d3c8-8be8-46aa-8f33-4c7f0d1a390a","block_type":"box","text":"securities may also be subject to contractually allowable write","page_number":579,"box":{"x":516,"y":677,"width":433,"height":13}},{"id":"b0f20132-4018-4190-a1c4-c87cf16f3e6e","block_type":"box","text":"downs of principal that could result in impairment. Together with","page_number":579,"box":{"x":46,"y":692,"width":458,"height":13}},{"id":"61a6238e-96ec-4ae3-b385-d8c47f1fad2f","block_type":"box","text":"the hybrid indicator, the long-term obligation rating assigned to","page_number":579,"box":{"x":508,"y":692,"width":443,"height":13}},{"id":"d95a7368-0b21-4f1b-8f48-e959e0395e6f","block_type":"box","text":"a hybrid security is an expression of the relative credit risk associated with that security.","page_number":579,"box":{"x":46,"y":708,"width":607,"height":13}},{"id":"6a5ca8c0-30a1-4e16-b346-a0d2518712d1","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":579,"box":{"x":45,"y":736,"width":412,"height":13}},{"id":"3c23c016-3723-4468-b0a7-ca271ba2ddb6","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":579,"box":{"x":45,"y":761,"width":701,"height":13}},{"id":"4138bbd9-bf3d-402c-ad68-9fdb7a9c7905","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":579,"box":{"x":45,"y":780,"width":687,"height":13}},{"id":"ae931f90-567f-47cc-b342-e40b50017ba3","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":579,"box":{"x":45,"y":800,"width":726,"height":13}},{"id":"63a8e039-f33f-4a0a-90d6-2b7ea9e9ad84","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":579,"box":{"x":45,"y":819,"width":829,"height":13}},{"id":"98558568-adcc-474a-ac47-b333f0a2625f","block_type":"box","text":"categories.","page_number":579,"box":{"x":197,"y":834,"width":75,"height":12}},{"id":"ce616a15-d852-4e87-b66c-4b650c707bef","block_type":"box","text":"A-2","page_number":579,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"4c2e0449-f3db-45de-903b-419b850d1bf6","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":579,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"50cd9d7c-7f05-4922-a4bf-a61a50e0f1b6","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":580,"box":{"x":45,"y":79,"width":660,"height":13}},{"id":"5b7d916a-ac56-4226-9893-b54b0cdad177","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":580,"box":{"x":45,"y":103,"width":406,"height":13}},{"id":"e3281c89-a29a-4ce0-9783-424ec431ff5e","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and nonprofits. These","page_number":580,"box":{"x":45,"y":125,"width":886,"height":13}},{"id":"9a8ac933-f3c2-4871-81f3-99544e4ba22a","block_type":"box","text":"commercial paper programs may be backed by external letters of","page_number":580,"box":{"x":45,"y":141,"width":452,"height":13}},{"id":"43ecfead-342d-4d75-b364-192cce18bad4","block_type":"box","text":"credit or liquidity facilities, or by an issuer’s self-liquidity.","page_number":580,"box":{"x":501,"y":141,"width":397,"height":13}},{"id":"615fd678-0f5b-422f-a45a-c23750eb09cb","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one","page_number":580,"box":{"x":45,"y":163,"width":431,"height":13}},{"id":"27b09b77-738e-44ca-bc1d-586e4403073f","block_type":"box","text":"of two other short-term rating scales, the Municipal Investment","page_number":580,"box":{"x":481,"y":163,"width":440,"height":13}},{"id":"1f7b9e44-19d7-4263-ac4d-e3315570347e","block_type":"box","text":"Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":580,"box":{"x":46,"y":179,"width":650,"height":12}},{"id":"f45e8907-aaa2-4da9-bc77-25776b8e12b8","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short-term obligations,","page_number":580,"box":{"x":45,"y":201,"width":900,"height":12}},{"id":"8ab20a41-fd8e-4272-9a82-5c92b5de0de3","block_type":"box","text":"which typically mature in three years or less. Under certain ci","page_number":580,"box":{"x":45,"y":216,"width":424,"height":13}},{"id":"ee6a5270-30bc-4616-b5f6-16c69948787c","block_type":"box","text":"rcumstances, Moody’s uses the MIG scale for bond anticipation","page_number":580,"box":{"x":469,"y":216,"width":444,"height":13}},{"id":"fb43a724-acbd-4985-bff2-caca8730ee4a","block_type":"box","text":"notes with maturities of up to five years.","page_number":580,"box":{"x":45,"y":232,"width":279,"height":12}},{"id":"f821979b-fc5b-4b0a-a837-ca2f81cead8a","block_type":"box","text":"MIG Scale","page_number":580,"box":{"x":45,"y":261,"width":73,"height":10}},{"id":"cc54ff80-789c-41f7-94e2-c01240cdf19d","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established cash","page_number":580,"box":{"x":45,"y":284,"width":878,"height":12}},{"id":"d15191d8-a892-41fb-a6a8-f84a1a0342c1","block_type":"box","text":"flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":580,"box":{"x":197,"y":298,"width":679,"height":13}},{"id":"3eba5aee-0871-425f-8c47-ae622f023673","block_type":"box","text":"refinancing.","page_number":580,"box":{"x":197,"y":312,"width":84,"height":13}},{"id":"883d6d18-8894-4eba-9d3d-2feffd5f1672","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as large","page_number":580,"box":{"x":45,"y":331,"width":891,"height":13}},{"id":"dc3eb05a-1628-491f-baad-d6cced6f569f","block_type":"box","text":"as in the preceding group.","page_number":580,"box":{"x":197,"y":346,"width":187,"height":13}},{"id":"a6d27d8f-c9c7-4c90-8b02-ac58b893b5ae","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow,","page_number":580,"box":{"x":45,"y":365,"width":894,"height":13}},{"id":"43653212-830b-44bb-99f2-87499a0cb726","block_type":"box","text":"and market access for refinancing is likely to be less well-established.","page_number":580,"box":{"x":197,"y":379,"width":499,"height":13}},{"id":"fb0c5e71-4b16-4207-9012-2ce7e15352b1","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may lack","page_number":580,"box":{"x":46,"y":399,"width":883,"height":12}},{"id":"91b93c78-902d-4fa1-812c-832153ddf555","block_type":"box","text":"sufficient margins of protection.","page_number":580,"box":{"x":197,"y":413,"width":231,"height":13}},{"id":"9950f400-6bb7-4af2-a4a7-b1c87772d66f","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":580,"box":{"x":45,"y":439,"width":382,"height":13}},{"id":"9330f5d5-cb7e-4252-83a0-aa1975ab2d7e","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a","page_number":580,"box":{"x":45,"y":464,"width":430,"height":13}},{"id":"67894346-fab6-4169-b1b6-183aa544d6c7","block_type":"box","text":"two-component rating is assigned. The components are a long-term","page_number":580,"box":{"x":480,"y":464,"width":469,"height":13}},{"id":"f5e6d9a4-cbf3-46d2-9685-46d14735086e","block_type":"box","text":"rating and a short-term demand obligation rating. The long-term","page_number":580,"box":{"x":45,"y":479,"width":451,"height":13}},{"id":"1d4b266e-e034-41a0-8fd0-ffb1475591b2","block_type":"box","text":"rating addresses the issuer’s ability to meet scheduled principal","page_number":580,"box":{"x":500,"y":479,"width":433,"height":13}},{"id":"ad987707-2bc7-4e1f-afdc-74f3c67b3e58","block_type":"box","text":"and interest payments. The short-term demand obligation ratin","page_number":580,"box":{"x":46,"y":495,"width":437,"height":13}},{"id":"3a3c89d4-b1c7-40f3-901b-629cf0e0dc4c","block_type":"box","text":"g addresses the ability of the issuer or the liquidity provider to","page_number":580,"box":{"x":484,"y":495,"width":429,"height":13}},{"id":"dd819d16-f30a-4a62-964a-6fdfc990b3c0","block_type":"box","text":"make payments associated with the purchase-price-upon-de","page_number":580,"box":{"x":45,"y":510,"width":413,"height":13}},{"id":"faee9faf-5834-4d7d-ad80-98c327e8e50a","block_type":"box","text":"mand feature (“demand feature”) of the VRDO. The short-term","page_number":580,"box":{"x":459,"y":510,"width":446,"height":13}},{"id":"6200a222-269e-4abe-b424-15a227b17d31","block_type":"box","text":"demand obligation rating uses the VMIG scale. VMIG ratings","page_number":580,"box":{"x":46,"y":526,"width":429,"height":13}},{"id":"c66aa84f-b657-426b-8a84-d019fe680a99","block_type":"box","text":"with liquidity support use as an input the short-term Counterparty","page_number":580,"box":{"x":480,"y":526,"width":462,"height":13}},{"id":"0a3aa2eb-1309-4f68-8749-8af2aa52775f","block_type":"box","text":"Risk Assessment of the support provider, or the long-term rating of t","page_number":580,"box":{"x":46,"y":541,"width":476,"height":13}},{"id":"914e1960-20e3-4326-b820-1699492e57c6","block_type":"box","text":"he underlying obligor in the absence of third party liquidity","page_number":580,"box":{"x":522,"y":541,"width":411,"height":13}},{"id":"f5c5dcfb-3832-4372-9867-e705166f5443","block_type":"box","text":"support. Transitions of VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the","page_number":580,"box":{"x":46,"y":557,"width":867,"height":13}},{"id":"97cf63bf-e8ef-4532-a684-966bc1a1fc1b","block_type":"box","text":"Prime scale to reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":580,"box":{"x":45,"y":572,"width":896,"height":13}},{"id":"b070cdcc-9875-4341-a8b4-90a6f722fa74","block_type":"box","text":"grade.","page_number":580,"box":{"x":45,"y":588,"width":42,"height":13}},{"id":"39682a5d-c42c-47fc-8ce3-2a8e91dccd79","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is less than every","page_number":580,"box":{"x":45,"y":610,"width":903,"height":13}},{"id":"adde2ecb-9830-46a9-8dd5-3eb36c5f3c93","block_type":"box","text":"three years. If the frequency of the demand feature is less than three years but the purchase price is payable only with remarketing","page_number":580,"box":{"x":45,"y":626,"width":899,"height":12}},{"id":"044ace13-a5a5-4521-b832-ec9e138c6f0a","block_type":"box","text":"proceeds, the short-term demand obligation rating is “NR”.","page_number":580,"box":{"x":45,"y":641,"width":416,"height":13}},{"id":"e4c07fd3-847a-44ea-a0c5-4497be38f9d3","block_type":"box","text":"VMIG Scale","page_number":580,"box":{"x":45,"y":669,"width":85,"height":9}},{"id":"23318605-c598-4d9e-9c84-8c992e98e8db","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior short","page_number":580,"box":{"x":45,"y":691,"width":897,"height":13}},{"id":"d3cc502f-4d0d-48e0-b21d-f8e1206869ba","block_type":"box","text":"term credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":580,"box":{"x":197,"y":705,"width":747,"height":13}},{"id":"6caba10c-5f85-4242-8aa5-1ca6423a7c25","block_type":"box","text":"payment of purchase price upon demand.","page_number":580,"box":{"x":197,"y":719,"width":300,"height":13}},{"id":"3bd44972-8ea6-4103-8ffe-56e329a367cb","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":580,"box":{"x":45,"y":739,"width":877,"height":12}},{"id":"13a3f5bf-a205-459f-b731-78f5ec4a4fad","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":580,"box":{"x":197,"y":753,"width":709,"height":13}},{"id":"02a05070-6786-4285-9de9-c211488bced9","block_type":"box","text":"payment of purchase price upon demand.","page_number":580,"box":{"x":197,"y":767,"width":300,"height":13}},{"id":"cd157838-5a6e-4007-901d-1ba650552350","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the satisfactory","page_number":580,"box":{"x":45,"y":786,"width":891,"height":13}},{"id":"b3335d3b-d87c-49e1-907d-528e13bc4aae","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections that ensure the","page_number":580,"box":{"x":197,"y":801,"width":740,"height":12}},{"id":"93c93a36-9c69-462f-9742-a25f65d357a8","block_type":"box","text":"timely payment of purchase price upon demand.","page_number":580,"box":{"x":197,"y":815,"width":349,"height":13}},{"id":"9c15ccfa-204a-4bf1-86d2-d5b0e038a154","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category may","page_number":580,"box":{"x":46,"y":834,"width":888,"height":13}},{"id":"d5a9ae0b-e09f-4d7e-ab42-9b9a46c2bc38","block_type":"box","text":"be supported by a liquidity provider that does not have a sufficiently strong short-term rating or may","page_number":580,"box":{"x":197,"y":848,"width":734,"height":13}},{"id":"2e5097e2-7ac3-4a94-bbd5-01c59398d772","block_type":"box","text":"lack the structural or legal protections necessary to ensure the timely payment of purchase price upon","page_number":580,"box":{"x":197,"y":863,"width":736,"height":12}},{"id":"ef054080-43c6-4c99-8f5f-35c88c54345d","block_type":"box","text":"demand.","page_number":580,"box":{"x":197,"y":877,"width":61,"height":10}},{"id":"5c4f6700-3023-458c-b958-56017e93e2e9","block_type":"box","text":"A-3","page_number":580,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"bf59648c-99fa-4519-b4b0-a583572c3645","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":580,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"19177c1b-e102-4880-b6ee-f697eff14f1c","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":581,"box":{"x":45,"y":79,"width":708,"height":13}},{"id":"e0187001-830f-4b97-8857-8706e4914af1","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 specific","page_number":581,"box":{"x":45,"y":105,"width":848,"height":12}},{"id":"0460cf60-bc64-43d5-b62f-4e6db9007500","block_type":"box","text":"financial obligation, a specific class of financial obligations","page_number":581,"box":{"x":45,"y":120,"width":407,"height":13}},{"id":"77461bdd-4ac9-4e64-887a-029dc0a4b4fc","block_type":"box","text":", or a specific financial program (including ratings on medium-term","page_number":581,"box":{"x":453,"y":120,"width":466,"height":13}},{"id":"6b5062a2-ae9c-4981-9bd1-183d56b23f08","block_type":"box","text":"note programs and commercial paper programs). It takes into c","page_number":581,"box":{"x":45,"y":136,"width":440,"height":12}},{"id":"9f6b5d0d-afaf-4c0c-a27f-9acf122dcb8f","block_type":"box","text":"onsideration the creditworthiness of guarantors, insurers, or other","page_number":581,"box":{"x":486,"y":136,"width":457,"height":12}},{"id":"e61d43f3-ed32-4548-a9c3-13f513616903","block_type":"box","text":"forms of credit enhancement on the obligation and takes into a","page_number":581,"box":{"x":45,"y":151,"width":437,"height":13}},{"id":"e94d7127-e727-4da8-89ac-67ca50ecfef7","block_type":"box","text":"ccount the currency in which the obligation is denominated. The","page_number":581,"box":{"x":482,"y":151,"width":448,"height":13}},{"id":"d912701d-6160-4d8f-aaf2-55c0fc4632cc","block_type":"box","text":"opinion reflects S&P’s view of the obligor’s capacity and willin","page_number":581,"box":{"x":46,"y":167,"width":436,"height":12}},{"id":"f199dc39-1f36-45e5-ac31-36c1dc707a0c","block_type":"box","text":"gness to meet its financial commitments as they come due, and this","page_number":581,"box":{"x":482,"y":167,"width":463,"height":12}},{"id":"fb7d05b4-c81c-4244-9e51-6f55bc8bf71c","block_type":"box","text":"opinion may assess terms, such as collateral security and subordi","page_number":581,"box":{"x":46,"y":182,"width":447,"height":13}},{"id":"96f4f8fb-7f76-45af-9083-a7317fc7d45e","block_type":"box","text":"nation, which could affect ultimate payment in the event of","page_number":581,"box":{"x":494,"y":182,"width":411,"height":13}},{"id":"caab5d77-aad5-4049-ac19-930ddeb01b3e","block_type":"box","text":"default.","page_number":581,"box":{"x":46,"y":198,"width":51,"height":10}},{"id":"b69afd04-8110-4e38-a848-09ccd15d0fef","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term","page_number":581,"box":{"x":45,"y":221,"width":476,"height":13}},{"id":"d84f3fb6-2a1e-4b8e-abec-8792035ad2d8","block_type":"box","text":"issue credit ratings are generally assigned to those obligations","page_number":581,"box":{"x":526,"y":221,"width":423,"height":13}},{"id":"6c01de14-56a0-4b29-ab00-031169a4bfac","block_type":"box","text":"considered short-term in the relevant market, typically with an original maturity of no more than 365 days. Short-term issue credit","page_number":581,"box":{"x":45,"y":236,"width":906,"height":13}},{"id":"cb11f670-11a4-4788-929d-001919821db8","block_type":"box","text":"ratings are also used to indicate the creditworthiness of an obligor with respect to put features on long-term obligations. S&P","page_number":581,"box":{"x":45,"y":252,"width":869,"height":13}},{"id":"d5f3a40a-ced9-43be-9c5d-1efd810cf32c","block_type":"box","text":"would typically assign a long-term issue credit rating to an ob","page_number":581,"box":{"x":45,"y":267,"width":427,"height":13}},{"id":"3f8ee444-2a87-4c91-9038-8fdfb44caea1","block_type":"box","text":"ligation with an original maturity of greater than 365 days.","page_number":581,"box":{"x":473,"y":267,"width":410,"height":13}},{"id":"0bd32189-9a39-47e7-a812-2e8b0bd73d0a","block_type":"box","text":"However, the ratings S&P assigns to certain instruments may div","page_number":581,"box":{"x":45,"y":283,"width":452,"height":13}},{"id":"6c97083b-c079-41d6-be78-82ae8962d847","block_type":"box","text":"erge from these guidelines based on market practices. Medium","page_number":581,"box":{"x":497,"y":283,"width":438,"height":13}},{"id":"46c9a2d0-cd3f-4ffd-9c60-9e5aace6b839","block_type":"box","text":"term notes are assigned long-term ratings.","page_number":581,"box":{"x":45,"y":298,"width":289,"height":13}},{"id":"98321c63-5808-46f2-90bc-6468ef855808","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":581,"box":{"x":45,"y":329,"width":689,"height":13}},{"id":"43777c3e-905f-4a17-988f-0c290f34f62e","block_type":"box","text":"• The likelihood of payment — the capacity and willingness of the obligor to meet its financial commitments on an","page_number":581,"box":{"x":80,"y":353,"width":849,"height":12}},{"id":"660c69dc-9f74-44fe-a4c8-ff89be63792d","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":581,"box":{"x":106,"y":368,"width":417,"height":13}},{"id":"2bbf58e5-a6e4-4b26-8afc-f4bc8bcb35d8","block_type":"box","text":"• The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":581,"box":{"x":80,"y":391,"width":672,"height":13}},{"id":"5cedfdce-fc41-4799-b363-9865f3913778","block_type":"box","text":"• The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":581,"box":{"x":80,"y":415,"width":792,"height":12}},{"id":"dfcbc3b4-ad8f-4f1f-98cb-77a464c83a87","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":581,"box":{"x":106,"y":430,"width":792,"height":13}},{"id":"2b735ef4-1afd-4f96-bf20-17734daa04ba","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporat","page_number":581,"box":{"x":45,"y":453,"width":461,"height":13}},{"id":"f271e999-44cc-460a-a866-020a6b1824ac","block_type":"box","text":"e an assessment of relative seniority or ultimate recovery in the","page_number":581,"box":{"x":506,"y":453,"width":434,"height":13}},{"id":"15f432c1-1c55-45b6-89af-ac9e8db23d0c","block_type":"box","text":"event of default. Junior obligations are typically rated lower than senior obligations, to reflect lower priority in bankruptcy, as","page_number":581,"box":{"x":46,"y":469,"width":873,"height":13}},{"id":"7928bdd4-90d2-41c8-838d-2ebaa714412b","block_type":"box","text":"noted above. (Such differentiation may apply when an entity has both senior and subordinated obligations, secured and unsecured","page_number":581,"box":{"x":45,"y":484,"width":904,"height":13}},{"id":"b916e8ba-d6a0-4370-b087-20f1abff1d32","block_type":"box","text":"obligations, or operating company and holding company obligations.)","page_number":581,"box":{"x":46,"y":500,"width":485,"height":13}},{"id":"34694bcc-07f1-4473-a2fd-b99cd7c58bb3","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":581,"box":{"x":45,"y":528,"width":232,"height":13}},{"id":"160d3c66-c7ec-4061-a9ca-d0d736036d66","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":581,"box":{"x":45,"y":553,"width":881,"height":13}},{"id":"bf6b1768-207a-42be-b118-90da59f121b8","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":581,"box":{"x":197,"y":567,"width":440,"height":13}},{"id":"6e4c677c-e210-4e52-8519-4642051dea53","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The obligor’s","page_number":581,"box":{"x":45,"y":597,"width":904,"height":13}},{"id":"dfcbbf4d-61d2-432f-a952-02a434002bd9","block_type":"box","text":"capacity to meet its financial commitments on the obligation is very strong.","page_number":581,"box":{"x":197,"y":611,"width":545,"height":13}},{"id":"473e2af1-e7d5-4a53-b050-748cae1632e1","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in circumstances","page_number":581,"box":{"x":45,"y":630,"width":902,"height":13}},{"id":"919d313e-6f5c-42c1-a108-246f7dfbe3fd","block_type":"box","text":"and economic conditions than obligations in higher-rated categories. However, the obligor’s capacity to","page_number":581,"box":{"x":197,"y":645,"width":753,"height":12}},{"id":"ec321e11-bd70-40b3-bae0-ad71571763c2","block_type":"box","text":"meet its financial commitments on the obligation is still strong.","page_number":581,"box":{"x":197,"y":659,"width":456,"height":13}},{"id":"90716d66-e623-4bd8-9ead-e73c74b8f025","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":581,"box":{"x":46,"y":678,"width":848,"height":13}},{"id":"8a71581b-f27c-4b69-a877-764ff7edd253","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":581,"box":{"x":197,"y":692,"width":705,"height":13}},{"id":"e5feeded-f477-4e81-a2b6-6a510b4b3661","block_type":"box","text":"financial commitments on the obligation.","page_number":581,"box":{"x":197,"y":707,"width":298,"height":12}},{"id":"3cea154d-a821-4046-85fb-b33eee733b35","block_type":"box","text":"BB, B, CCC, CC,","page_number":581,"box":{"x":46,"y":727,"width":123,"height":11}},{"id":"5752959f-b04d-4dc3-aed4-eaea826b75c2","block_type":"box","text":"and C Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":581,"box":{"x":46,"y":740,"width":835,"height":13}},{"id":"97cfa699-4e1f-45f3-8224-f1902050ef79","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such obligations","page_number":581,"box":{"x":197,"y":754,"width":749,"height":13}},{"id":"2e259314-1187-4c40-9197-14e45f2c5c56","block_type":"box","text":"will likely have some quality and protective characteristics, these may be outweighed by large","page_number":581,"box":{"x":197,"y":769,"width":677,"height":13}},{"id":"241deb82-aa0f-45c8-ae18-67a0121c05c7","block_type":"box","text":"uncertainties or major exposure to adverse conditions.","page_number":581,"box":{"x":197,"y":783,"width":393,"height":13}},{"id":"4e3a5f6e-6e47-4125-8dc0-feab50acb3d9","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":581,"box":{"x":46,"y":802,"width":875,"height":13}},{"id":"763a2a7f-204f-4679-80c0-044b73e6b461","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions","page_number":581,"box":{"x":197,"y":817,"width":729,"height":12}},{"id":"af7619dc-6cde-4af7-b5ce-1a14b82e788e","block_type":"box","text":"that could lead to the obligor’s inadequate capacity to meet its financial commitments on the","page_number":581,"box":{"x":197,"y":831,"width":673,"height":13}},{"id":"579acaee-934b-4773-b0e1-6ea2c2123d88","block_type":"box","text":"obligation.","page_number":581,"box":{"x":197,"y":845,"width":77,"height":13}},{"id":"9070171b-c277-4562-bba8-63aff157f354","block_type":"box","text":"A-4","page_number":581,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"d03ca7d5-c7c5-4bee-b893-5476bb3bc345","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":581,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"37769414-6fc4-432a-b7a7-45559549ce9f","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":582,"box":{"x":46,"y":83,"width":888,"height":12}},{"id":"49bdfaf3-8197-47a7-9347-92750919fc1c","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":582,"box":{"x":197,"y":97,"width":702,"height":13}},{"id":"425f38ef-9b95-488f-861a-5a7941713bdc","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":582,"box":{"x":197,"y":111,"width":716,"height":13}},{"id":"abc0abaa-90a8-4743-a29e-4a56ee9cafb4","block_type":"box","text":"financial commitments on the obligation.","page_number":582,"box":{"x":197,"y":125,"width":298,"height":13}},{"id":"93c6807f-b0e1-4ac7-aa06-a16a125c70ae","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":582,"box":{"x":46,"y":145,"width":867,"height":12}},{"id":"f8b6c91c-710e-4be8-9e9c-ec88a581fb7a","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on the","page_number":582,"box":{"x":197,"y":159,"width":734,"height":13}},{"id":"f16754a3-1e02-4992-9bea-1b9c783b5f0d","block_type":"box","text":"obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely","page_number":582,"box":{"x":197,"y":173,"width":741,"height":13}},{"id":"afcc0bab-4b1d-4481-ade1-3da15d3a71b5","block_type":"box","text":"to have the capacity to meet its financial commitments on the obligation.","page_number":582,"box":{"x":197,"y":187,"width":528,"height":13}},{"id":"62a4a444-54d0-4267-915e-c64b54931184","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when a","page_number":582,"box":{"x":46,"y":207,"width":896,"height":12}},{"id":"16329fd8-7113-4e71-843b-fe110b4a4306","block_type":"box","text":"default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":582,"box":{"x":197,"y":221,"width":687,"height":13}},{"id":"4937edd6-3e49-4074-8890-7da98f61fb80","block_type":"box","text":"anticipated time to default.","page_number":582,"box":{"x":197,"y":235,"width":195,"height":13}},{"id":"42a7ce5c-a12c-4804-b481-12bc8eb3ee59","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected to","page_number":582,"box":{"x":46,"y":254,"width":896,"height":13}},{"id":"3db48407-ad48-489a-9ee7-4488fcc09bcf","block_type":"box","text":"have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":582,"box":{"x":197,"y":269,"width":705,"height":13}},{"id":"15c80030-6e35-4850-9c24-365ada28c2da","block_type":"box","text":"higher.","page_number":582,"box":{"x":197,"y":283,"width":49,"height":13}},{"id":"15aab811-1070-4583-b43a-c483678216fc","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":582,"box":{"x":45,"y":302,"width":847,"height":13}},{"id":"497557d6-70a9-412f-ab9c-6a9afcd22ecc","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the date","page_number":582,"box":{"x":197,"y":317,"width":740,"height":12}},{"id":"dc3fdad6-5e52-4288-98e8-3c07c67ceb09","block_type":"box","text":"due, unless S&P believes that such payments will be made within five business days in the absence of a","page_number":582,"box":{"x":197,"y":331,"width":745,"height":13}},{"id":"189edd10-da51-4650-875e-7074f6d1967e","block_type":"box","text":"stated grace period or within the earlier of the stated grace period or 30 calendar days. The ‘D’ rating","page_number":582,"box":{"x":197,"y":345,"width":737,"height":13}},{"id":"e142c261-8d22-4400-b18a-6b25f2d4d5a8","block_type":"box","text":"also will be used upon the filing of a bankruptcy petition or the taking of similar action and where","page_number":582,"box":{"x":197,"y":359,"width":715,"height":13}},{"id":"8417d6bc-5047-429c-b86a-43edc925aa5a","block_type":"box","text":"default on an obligation is a virtual certainty, for example due to automatic stay provisions. A rating on","page_number":582,"box":{"x":197,"y":373,"width":755,"height":13}},{"id":"62389a3c-8d3a-41eb-a287-90fede409a04","block_type":"box","text":"an obligation is lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":582,"box":{"x":197,"y":388,"width":569,"height":12}},{"id":"fad3851b-8296-4f28-bc3e-0704ab736408","block_type":"box","text":"* Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the","page_number":582,"box":{"x":47,"y":411,"width":898,"height":13}},{"id":"8d8c3510-d32e-4fc3-a39d-746a8d323cca","block_type":"box","text":"rating categories.","page_number":582,"box":{"x":45,"y":427,"width":118,"height":12}},{"id":"c378ade3-0275-436d-b07a-f11842ddee7c","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":582,"box":{"x":46,"y":455,"width":234,"height":13}},{"id":"28513fdb-c763-44bf-9f3b-f21b16930be3","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":582,"box":{"x":45,"y":479,"width":884,"height":13}},{"id":"48ab239b-8b68-45ee-872f-a77ebbb4784a","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations are","page_number":582,"box":{"x":197,"y":494,"width":750,"height":12}},{"id":"6c84d16c-b776-4abe-8e82-3e01bf26dfd0","block_type":"box","text":"designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":582,"box":{"x":197,"y":508,"width":672,"height":13}},{"id":"afd5a31f-bc01-429d-899b-48f04c677b16","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":582,"box":{"x":197,"y":522,"width":393,"height":13}},{"id":"67be45a4-3cb4-4c01-8bb7-76e9e9fbd362","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes in","page_number":582,"box":{"x":45,"y":536,"width":884,"height":13}},{"id":"c2e4e121-8e33-4bba-a934-af0d522ccb13","block_type":"box","text":"circumstances and economic conditions than obligations in higher rating categories. However, the","page_number":582,"box":{"x":197,"y":550,"width":711,"height":13}},{"id":"f1410d33-d9ae-45a5-8adc-329b417e4cb1","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":582,"box":{"x":197,"y":565,"width":616,"height":12}},{"id":"30f82184-8591-4d9c-86f0-c108a07af7eb","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":582,"box":{"x":45,"y":584,"width":843,"height":13}},{"id":"05365b1c-6245-4035-a47a-c8254f57c0b9","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to meet","page_number":582,"box":{"x":197,"y":598,"width":753,"height":13}},{"id":"6aa80da1-43ae-4902-a8bd-71a5214e7102","block_type":"box","text":"its financial commitments on the obligation.","page_number":582,"box":{"x":197,"y":612,"width":319,"height":13}},{"id":"d3f7eba8-df62-4c2c-a1dc-1d9f07ef647f","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":582,"box":{"x":46,"y":632,"width":798,"height":13}},{"id":"22cdc8d0-e8ac-4a6a-bab4-0f8df8997fab","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however, it","page_number":582,"box":{"x":197,"y":646,"width":730,"height":13}},{"id":"2fd92e92-a925-42a8-ac5a-8b945d7d0c26","block_type":"box","text":"faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":582,"box":{"x":197,"y":660,"width":701,"height":13}},{"id":"fbdc1a1a-e449-453c-a011-5b1079d80f75","block_type":"box","text":"financial commitments.","page_number":582,"box":{"x":197,"y":674,"width":169,"height":10}},{"id":"d6942755-bed2-4412-9085-365cd9f7da8d","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":582,"box":{"x":46,"y":694,"width":842,"height":13}},{"id":"8ea576c5-c6af-48c8-b314-70673b04b22f","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":582,"box":{"x":197,"y":708,"width":654,"height":13}},{"id":"b0b40b05-29f7-4ba9-b7da-f02369f59721","block_type":"box","text":"commitments on the obligation.","page_number":582,"box":{"x":197,"y":722,"width":230,"height":13}},{"id":"4792ad08-6490-433a-949c-aa2d525135c2","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":582,"box":{"x":45,"y":742,"width":866,"height":12}},{"id":"a4eb1eb1-1aa5-4dbe-b4ce-1bc90750a022","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made on","page_number":582,"box":{"x":197,"y":756,"width":731,"height":13}},{"id":"83dd6c1c-d5fa-431b-987e-4ef478c95257","block_type":"box","text":"the date due, unless S&P believes that such payments will be made within any stated grace period.","page_number":582,"box":{"x":197,"y":770,"width":712,"height":13}},{"id":"41f9cbc0-a795-4ec7-b573-768db80f8897","block_type":"box","text":"However, any stated grace period longer than five business days will be treated as five business days.","page_number":582,"box":{"x":197,"y":784,"width":730,"height":13}},{"id":"315df0fe-4c3c-4610-9ae7-0f0ff44e76ee","block_type":"box","text":"The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action","page_number":582,"box":{"x":197,"y":798,"width":755,"height":13}},{"id":"81b8a3d6-eaad-4f15-97df-db63e914c7ca","block_type":"box","text":"and where default on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":582,"box":{"x":197,"y":813,"width":747,"height":12}},{"id":"096eb6c5-5c40-4b1f-8420-1a098c73eb90","block_type":"box","text":"A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt restructuring.","page_number":582,"box":{"x":197,"y":827,"width":657,"height":13}},{"id":"f4724e0c-8e53-41eb-a12b-319fbe2066b9","block_type":"box","text":"A-5","page_number":582,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"479d07b7-e71f-4025-935c-ea9630656b06","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":582,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e7d00d6d-1463-4ff1-b5c7-76e0b2d810ea","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":583,"box":{"x":45,"y":79,"width":424,"height":13}},{"id":"aa3032fa-3c25-4cde-927d-bab93c093ea1","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about th","page_number":583,"box":{"x":45,"y":105,"width":467,"height":12}},{"id":"4bc69b3d-32d3-4f91-8e9c-079579b15721","block_type":"box","text":"e liquidity factors and market access risks unique to the notes.","page_number":583,"box":{"x":513,"y":105,"width":428,"height":12}},{"id":"914f57ee-17af-4f9a-b52e-18050003cb81","block_type":"box","text":"Notes due in three years or less will likely receive a note rating. No","page_number":583,"box":{"x":45,"y":120,"width":464,"height":13}},{"id":"ce810836-bf72-4118-83ed-8e83ccb90626","block_type":"box","text":"tes with an original maturity of more than three years will most","page_number":583,"box":{"x":509,"y":120,"width":441,"height":13}},{"id":"887dd504-e69b-467f-a773-0e9ede3b77df","block_type":"box","text":"likely receive a long-term debt rating. In determining which ty","page_number":583,"box":{"x":45,"y":136,"width":429,"height":12}},{"id":"a41d138b-1a61-4485-b63f-cf28cfdcc914","block_type":"box","text":"pe of rating, if any, to assign, S&P’s analysis will review the","page_number":583,"box":{"x":475,"y":136,"width":414,"height":12}},{"id":"3e183c52-9421-4e26-95f4-6b0a40aa89cb","block_type":"box","text":"following considerations:","page_number":583,"box":{"x":45,"y":151,"width":174,"height":13}},{"id":"9a35fa8b-b78e-4b72-8406-52310ad60b38","block_type":"box","text":"• Amortization schedule — the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":583,"box":{"x":80,"y":174,"width":857,"height":13}},{"id":"c8eb472f-5ec1-40a0-b34c-bd560945d8bd","block_type":"box","text":"as a note; and","page_number":583,"box":{"x":106,"y":190,"width":100,"height":12}},{"id":"c08f7f36-de38-476a-8801-25daffee74bc","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":583,"box":{"x":80,"y":213,"width":841,"height":13}},{"id":"838ed670-b5e8-4d86-a268-da04da4fb258","block_type":"box","text":"treated as a note.","page_number":583,"box":{"x":106,"y":229,"width":123,"height":10}},{"id":"3736a99b-b33a-44d5-9c5b-6618c4a4cb23","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":583,"box":{"x":46,"y":252,"width":438,"height":13}},{"id":"6a8ff011-04d5-4888-8bbc-dee42a28526a","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to","page_number":583,"box":{"x":46,"y":276,"width":889,"height":13}},{"id":"6702c71e-58d4-4877-ab2a-96c2c0c8eb57","block_type":"box","text":"pay debt service is given a plus (+) designation.","page_number":583,"box":{"x":197,"y":291,"width":339,"height":12}},{"id":"980f7c57-644f-4ff8-a361-47da29ce7515","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":583,"box":{"x":46,"y":310,"width":869,"height":13}},{"id":"42fb39d3-c6ae-4c85-971f-ea0028839cfd","block_type":"box","text":"economic changes over the term of the notes.","page_number":583,"box":{"x":197,"y":324,"width":326,"height":13}},{"id":"3908ee3a-4d11-4e16-bbc8-8e99b0a834a5","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":583,"box":{"x":46,"y":344,"width":510,"height":12}},{"id":"a7cc02b7-664a-4246-ae84-76915ac08f60","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt restructuring, or","page_number":583,"box":{"x":45,"y":363,"width":897,"height":13}},{"id":"5bc0ac5a-dda4-4099-a9d5-d6a5f9b7b885","block_type":"box","text":"the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is","page_number":583,"box":{"x":197,"y":377,"width":744,"height":13}},{"id":"6dc6b2db-a460-4f2f-8782-427563e88f42","block_type":"box","text":"a virtual certainty, for example due to automatic stay provisions.","page_number":583,"box":{"x":197,"y":391,"width":470,"height":13}},{"id":"70b41759-6a0c-48a8-b713-4edfc877d857","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":583,"box":{"x":45,"y":420,"width":450,"height":13}},{"id":"a836b614-ebf6-4b4e-9f1c-25eaeb0cf9da","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings, but the agency also publishes","page_number":583,"box":{"x":45,"y":446,"width":904,"height":13}},{"id":"8ae32724-40e9-4b74-8a8e-e75147f1b1a7","block_type":"box","text":"ratings, scores and other relative opinions relating to financial or op","page_number":583,"box":{"x":45,"y":461,"width":471,"height":13}},{"id":"ffc6d50b-50d9-4693-86de-0df00685c3d6","block_type":"box","text":"erational strength. For example, Fitch also provides specialized","page_number":583,"box":{"x":516,"y":461,"width":435,"height":13}},{"id":"31d61238-dc52-4dce-9dcc-f38968d1954e","block_type":"box","text":"ratings of servicers of residential and commercial mortgages, asset managers and funds. In each case, users should refer to the","page_number":583,"box":{"x":45,"y":477,"width":869,"height":13}},{"id":"92ddd41d-a922-4a08-ab93-abee33106c4a","block_type":"box","text":"definitions of each individual scale for guidance on the dimensions of risk covered in each assessment.","page_number":583,"box":{"x":46,"y":492,"width":704,"height":13}},{"id":"e9f6b72c-a34b-47b6-8042-8d992471177a","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the rel","page_number":583,"box":{"x":45,"y":515,"width":442,"height":13}},{"id":"6c2873f5-59fb-430d-b44a-194cd026b347","block_type":"box","text":"ative ability of an entity to meet financial commitments, such as","page_number":583,"box":{"x":488,"y":515,"width":441,"height":13}},{"id":"6cc050e5-bd43-4e5f-9c30-404c4d948273","block_type":"box","text":"interest, preferred dividends, repayment of principal, insurance","page_number":583,"box":{"x":45,"y":531,"width":435,"height":13}},{"id":"239754e5-4ba7-41b1-b08f-3b4b6c422041","block_type":"box","text":"claims or counterparty obligations. Credit ratings relating to","page_number":583,"box":{"x":485,"y":531,"width":418,"height":13}},{"id":"299d792e-47d0-4c36-bf1f-4501f20089e6","block_type":"box","text":"securities and obligations of an issuer can include a recovery expectation. Credit ratings are used by investors as indications of the","page_number":583,"box":{"x":46,"y":546,"width":898,"height":13}},{"id":"952d682d-9ef4-410a-bb91-b43097c7c0bb","block_type":"box","text":"likelihood of receiving the money owed to them in accordance with the terms on which they invested. The agency’s credit ratings","page_number":583,"box":{"x":45,"y":562,"width":894,"height":13}},{"id":"3290d3ab-3cfa-4fa5-a021-8b74986cd507","block_type":"box","text":"cover the global spectrum of corporate, sovereign financial, bank,","page_number":583,"box":{"x":45,"y":577,"width":455,"height":13}},{"id":"9bbdb58d-a034-4412-a37f-b6836f4bcdac","block_type":"box","text":"insurance, and public finance entities (including supranational","page_number":583,"box":{"x":505,"y":577,"width":430,"height":13}},{"id":"cd9f922d-3fc9-4e02-84da-81869ee553d3","block_type":"box","text":"and sub-national entities) and the securities or other obligations","page_number":583,"box":{"x":46,"y":593,"width":440,"height":13}},{"id":"44f6a854-29ee-4f7a-b4ac-453cd4f273cf","block_type":"box","text":"they issue, as well as structured finance securities backed by","page_number":583,"box":{"x":491,"y":593,"width":414,"height":13}},{"id":"e7651e78-44c4-45eb-805b-7712a1ca7cc3","block_type":"box","text":"receivables or other financial assets.","page_number":583,"box":{"x":45,"y":608,"width":247,"height":11}},{"id":"e9e439ac-6dc6-47b4-9066-ac47198f7d32","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to describe the","page_number":583,"box":{"x":45,"y":632,"width":846,"height":13}},{"id":"78a0eebc-0cb0-4571-a0a3-e6fc907f4735","block_type":"box","text":"categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment grade and speculative","page_number":583,"box":{"x":45,"y":647,"width":866,"height":13}},{"id":"5e6ba27f-4c4b-4179-8174-f5c25889c42d","block_type":"box","text":"grade are market conventions and do not imply any recommendation or endorsement of a specific security for investment","page_number":583,"box":{"x":45,"y":663,"width":844,"height":13}},{"id":"fccfb065-7bc3-4177-8563-b16acdf788d4","block_type":"box","text":"purposes. Investment grade categories indicate relatively low to m","page_number":583,"box":{"x":45,"y":678,"width":456,"height":13}},{"id":"4188903c-2bde-40c4-991b-25b43c51e299","block_type":"box","text":"oderate credit risk, while ratings in the speculative categories","page_number":583,"box":{"x":502,"y":678,"width":420,"height":13}},{"id":"653dbdec-f235-47b0-bcd9-8b281b623f31","block_type":"box","text":"either signal a higher level of credit risk or that a default has already occurred.","page_number":583,"box":{"x":46,"y":694,"width":540,"height":13}},{"id":"0c1a60d9-3134-4226-b0fb-e2f3187738e4","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have not been rated on its","page_number":583,"box":{"x":45,"y":717,"width":903,"height":13}},{"id":"5e677a37-901d-410e-a916-62080e506b17","block_type":"box","text":"web page. Such issues are also denoted as ‘NR’.","page_number":583,"box":{"x":45,"y":733,"width":330,"height":12}},{"id":"4797e024-f8ce-4cb9-924f-a72061f7eb16","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say","page_number":583,"box":{"x":46,"y":756,"width":443,"height":13}},{"id":"9c326825-55b0-431e-9e14-438dc725a69a","block_type":"box","text":"they are ordinal measures of credit risk and are not predictive of a","page_number":583,"box":{"x":494,"y":756,"width":457,"height":13}},{"id":"c3e74ce0-6d5f-4c7c-bd06-8f52fdf8e8ac","block_type":"box","text":"specific frequency of default or loss. For information about the historical performance of ratings please refer to Fitch’s Ratings","page_number":583,"box":{"x":46,"y":771,"width":874,"height":13}},{"id":"d4b4b50c-ae97-4f21-9317-037e4a72e5a9","block_type":"box","text":"Transition and Default studies which detail the historical de","page_number":583,"box":{"x":45,"y":787,"width":415,"height":10}},{"id":"c89bdb71-18f2-4a12-b32f-af86becc4db3","block_type":"box","text":"fault rates and their meaning. The European Securities and Markets","page_number":583,"box":{"x":461,"y":787,"width":469,"height":13}},{"id":"76e69f9f-7ffa-4dbb-9d22-b56affeda2b0","block_type":"box","text":"Authority also maintains a central repository of historical default rates.","page_number":583,"box":{"x":45,"y":802,"width":492,"height":13}},{"id":"a8ba1331-204c-4983-9969-384cae1bbbb3","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than","page_number":583,"box":{"x":45,"y":826,"width":440,"height":12}},{"id":"d9759dbb-d333-4810-adbd-5114f4fd7f71","block_type":"box","text":"credit risk. In particular, ratings do not deal with the risk of a","page_number":583,"box":{"x":490,"y":826,"width":426,"height":12}},{"id":"4f0926dc-1353-4661-bb61-8ac6f4649536","block_type":"box","text":"market value loss on a rated security due to changes in interest rates, liquidity and other market considerations. However, in terms","page_number":583,"box":{"x":45,"y":841,"width":905,"height":13}},{"id":"0516f42c-2cda-4d4b-930d-f278a5428ae0","block_type":"box","text":"of payment obligation on the rated liability, market risk may be c","page_number":583,"box":{"x":46,"y":857,"width":453,"height":12}},{"id":"096099ff-efce-436f-8467-4d19d27f9f52","block_type":"box","text":"onsidered to the extent that it influences the ability of an issuer to","page_number":583,"box":{"x":499,"y":857,"width":454,"height":12}},{"id":"9bd5c341-910c-48f3-91f6-dd1d493acb78","block_type":"box","text":"pay upon a commitment.","page_number":583,"box":{"x":45,"y":873,"width":174,"height":12}},{"id":"aa696bfd-c2ed-4588-b394-efee6da30480","block_type":"box","text":"A-6","page_number":583,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"cf47c20d-faf1-46ac-be21-d40558d1d543","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":583,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"68fd371f-b68e-4295-977a-34eb993fb8ca","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that the","page_number":584,"box":{"x":46,"y":79,"width":466,"height":13}},{"id":"adc4c960-5609-41b6-8567-d79d78acbb55","block_type":"box","text":"y influence the size or other conditionality of the obligation to","page_number":584,"box":{"x":513,"y":79,"width":429,"height":13}},{"id":"ac857ed1-b8ca-4dae-8b5a-d1ab836aff13","block_type":"box","text":"pay upon a commitment (for example, in the case of index-linked bonds).","page_number":584,"box":{"x":45,"y":94,"width":510,"height":13}},{"id":"5c5db293-9a37-4dca-8637-7f9a6f4251a4","block_type":"box","text":"In the default components of ratings assigned to individual obliga","page_number":584,"box":{"x":45,"y":118,"width":454,"height":12}},{"id":"46fd0661-f3dd-4c32-8100-af9937e6bd21","block_type":"box","text":"tions or instruments, the agency typically rates to the likelihood","page_number":584,"box":{"x":500,"y":118,"width":440,"height":12}},{"id":"61bd9b50-ec8a-4877-8de5-fa2b784baad0","block_type":"box","text":"of non-payment or default in accordance with the terms of that i","page_number":584,"box":{"x":46,"y":133,"width":447,"height":13}},{"id":"c1bf84de-591a-4405-b50b-413802329f31","block_type":"box","text":"nstrument’s documentation. In limited cases, Fitch may include","page_number":584,"box":{"x":493,"y":133,"width":437,"height":13}},{"id":"fbe1b3cc-f1b8-44b5-9fbb-be1b7e25d689","block_type":"box","text":"additional considerations (i.e. rate to a higher or lower standa","page_number":584,"box":{"x":46,"y":149,"width":428,"height":12}},{"id":"2e89efdb-644a-49e4-a736-4459be58d56a","block_type":"box","text":"rd than that implied in the obligation’s documentation).","page_number":584,"box":{"x":475,"y":149,"width":386,"height":12}},{"id":"6c65e4f5-06c4-4e17-99f6-c51851c483f0","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note issuance programs or","page_number":584,"box":{"x":45,"y":172,"width":908,"height":13}},{"id":"6ec91a1e-6a07-48ee-9b32-e2d71fc42369","block_type":"box","text":"for private ratings. In this case the rating is not published, but only provided to the issuer or its agents in the form of a rating letter.","page_number":584,"box":{"x":45,"y":187,"width":907,"height":13}},{"id":"8a439e13-6582-428d-bd8f-dde7730026c5","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest strips and return","page_number":584,"box":{"x":45,"y":211,"width":894,"height":12}},{"id":"af5dcf6a-2c8d-479a-985e-4847d3b0e335","block_type":"box","text":"of principal or in other forms of opinions such as credit opinions","page_number":584,"box":{"x":46,"y":226,"width":448,"height":13}},{"id":"95b463fe-3672-4981-992a-9e7e060f7926","block_type":"box","text":"or rating assessment services. Credit opinions are either a notch","page_number":584,"box":{"x":499,"y":226,"width":444,"height":13}},{"id":"62e6c948-bddd-4497-8cc2-d0e6f23df490","block_type":"box","text":"or category-specific view using the primary rating scale and o","page_number":584,"box":{"x":46,"y":242,"width":424,"height":12}},{"id":"77cddb23-ff1a-4f5a-9692-a840d9e2e730","block_type":"box","text":"mit one or more characteristics of a full rating or meet them to a","page_number":584,"box":{"x":471,"y":242,"width":446,"height":12}},{"id":"6bdf8e5b-e752-4d20-ba6e-3650cd7a19be","block_type":"box","text":"different standard. Credit opinions will be indicated using a lower case letter symbol combined with either an ‘*’ (e.g. ‘bbb+*’) or","page_number":584,"box":{"x":46,"y":257,"width":897,"height":13}},{"id":"f59b65a1-013e-4561-83f7-c5faefeeda5b","block_type":"box","text":"(cat) suffix to denote the opinion status. Credit opinions will be point-in-time typically but may be monitored if the analytical","page_number":584,"box":{"x":46,"y":273,"width":869,"height":12}},{"id":"d302f2a9-8ff2-4410-ab67-e5670e77e139","block_type":"box","text":"group believes information will be sufficiently available. Rating a","page_number":584,"box":{"x":45,"y":288,"width":451,"height":13}},{"id":"7a98520b-6bf3-4260-b7c5-ec73b9e9c25c","block_type":"box","text":"ssessment services are a notch-specific view using the primary","page_number":584,"box":{"x":497,"y":288,"width":426,"height":13}},{"id":"990befb5-6d5f-44ea-b05a-64205ecb5216","block_type":"box","text":"rating scale of how an existing or potential rating may be changed by a given set of hypothetical circumstances. While credit","page_number":584,"box":{"x":45,"y":304,"width":861,"height":12}},{"id":"6bc253c2-bd9a-4ca4-8139-bafb2159069e","block_type":"box","text":"opinions and rating assessment services are point-in-time and are","page_number":584,"box":{"x":46,"y":319,"width":449,"height":13}},{"id":"2ea6771a-fd64-42bc-8258-f6d82f38d6de","block_type":"box","text":"not monitored, they may have a directional watch or outlook","page_number":584,"box":{"x":500,"y":319,"width":425,"height":13}},{"id":"7b3077b3-eb97-4dfe-956d-59e73e41b1d3","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":584,"box":{"x":46,"y":335,"width":425,"height":12}},{"id":"c6a2cf46-54f4-4c48-9f36-391737a14a63","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":584,"box":{"x":45,"y":363,"width":575,"height":13}},{"id":"9e24eb5f-06a1-4706-8bc3-a463f08b31b7","block_type":"box","text":"Ratings of individual securities or financial obligations of a corpor","page_number":584,"box":{"x":46,"y":389,"width":459,"height":13}},{"id":"29a6e837-5ba6-455b-bc72-10779a0a1937","block_type":"box","text":"ate issuer address relative vulnerability to default on an ordinal","page_number":584,"box":{"x":506,"y":389,"width":436,"height":13}},{"id":"65c8324c-add1-43ac-96f0-c6864062f4bb","block_type":"box","text":"scale. In addition, for financial obligations in corporate fin","page_number":584,"box":{"x":46,"y":404,"width":405,"height":13}},{"id":"a4b7bbe8-1762-4d27-bab0-f6b92d413439","block_type":"box","text":"ance, a measure of recovery given default on that liability is also","page_number":584,"box":{"x":451,"y":404,"width":443,"height":13}},{"id":"71e7532f-055f-4a68-b763-bb25b1f72bf7","block_type":"box","text":"included in the rating assessment. This notably applies to covered bonds ratings, which incorporate both an indication of the","page_number":584,"box":{"x":45,"y":420,"width":864,"height":13}},{"id":"08ce1ea2-1c72-45d0-b1ae-867ac95b3c5a","block_type":"box","text":"probability of default and of the recovery given a default of this debt instrument. On the contrary, Ratings of debtor-in-possession","page_number":584,"box":{"x":45,"y":435,"width":903,"height":13}},{"id":"22d6f080-41a9-4ced-aab0-21683908a3db","block_type":"box","text":"(“DIP”) obligations incorporate the expectation of full repayment.","page_number":584,"box":{"x":46,"y":451,"width":459,"height":13}},{"id":"8895c6b7-6d41-4924-924d-7d7d78394163","block_type":"box","text":"The relationship between the issuer scale and obligation scale assu","page_number":584,"box":{"x":45,"y":474,"width":459,"height":13}},{"id":"0587266c-f13f-457c-aa6f-48414024300e","block_type":"box","text":"mes a generic historical average recovery. Individual obligations","page_number":584,"box":{"x":504,"y":474,"width":442,"height":13}},{"id":"5f60c980-8076-4ca4-93b9-081c893bf958","block_type":"box","text":"can be assigned ratings higher, lower, or the same as that entity’s","page_number":584,"box":{"x":45,"y":490,"width":449,"height":12}},{"id":"b558c8a2-3c28-4f3f-9c94-6b95ea024f76","block_type":"box","text":"issuer rating or issuer default rating (“IDR”), based on their","page_number":584,"box":{"x":500,"y":490,"width":415,"height":12}},{"id":"83d9ba84-4709-46b1-9ed5-9f5ce5bf0f17","block_type":"box","text":"relative ranking, relative vulnerability to default or based on explicit Recovery Ratings.","page_number":584,"box":{"x":45,"y":505,"width":602,"height":13}},{"id":"9c168d8c-8cff-4c68-bdc0-6c0dbc2bab2f","block_type":"box","text":"As a result, individual obligations of entities, such as corporations","page_number":584,"box":{"x":45,"y":528,"width":456,"height":13}},{"id":"fd8fff06-aa90-4e98-8d2b-71e260a184bc","block_type":"box","text":", are assigned ratings higher, lower, or the same as that entity’s","page_number":584,"box":{"x":502,"y":528,"width":435,"height":13}},{"id":"19f8ed78-1607-4250-9f16-214fa2e5ee7f","block_type":"box","text":"issuer rating or IDR, except DIP obligation ratings that are","page_number":584,"box":{"x":45,"y":544,"width":408,"height":13}},{"id":"e240c2b3-7eff-4d2f-befe-d9185116108a","block_type":"box","text":"not based off an IDR. At the lower end of the ratings scale, Fitch","page_number":584,"box":{"x":458,"y":544,"width":448,"height":13}},{"id":"a38b2bc7-b98e-4f0f-be1d-2ce92a1d6bc8","block_type":"box","text":"publishes explicit Recovery Ratings in many cases to","page_number":584,"box":{"x":45,"y":559,"width":364,"height":13}},{"id":"52bc2889-8277-4ae4-bb31-afce5cdf1d84","block_type":"box","text":"complement issuer and obligation ratings.","page_number":584,"box":{"x":414,"y":559,"width":290,"height":13}},{"id":"259f5a65-8fbe-4221-8170-4ba02c9bea85","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":584,"box":{"x":45,"y":583,"width":381,"height":12}},{"id":"ed4b0fd1-8fb2-4bed-9643-c03f473a20e2","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":584,"box":{"x":45,"y":605,"width":885,"height":12}},{"id":"b5200c79-9148-4329-a6b3-5da483bf85f3","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity is","page_number":584,"box":{"x":197,"y":619,"width":732,"height":13}},{"id":"a8f40fe5-3819-4e45-931d-5ed83e143f03","block_type":"box","text":"highly unlikely to be adversely affected by foreseeable events.","page_number":584,"box":{"x":197,"y":633,"width":443,"height":13}},{"id":"2c765e9e-0be9-473f-9f3a-30dd64d1d77a","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":584,"box":{"x":45,"y":652,"width":892,"height":13}},{"id":"98bca662-3594-44f2-8b16-b3e15eb79b7d","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to","page_number":584,"box":{"x":197,"y":667,"width":737,"height":12}},{"id":"dbdb2a9c-bdab-47da-9f5c-4e82652d3e2d","block_type":"box","text":"foreseeable events.","page_number":584,"box":{"x":197,"y":681,"width":133,"height":10}},{"id":"a7906025-2283-41e2-b109-ac24978d249c","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":584,"box":{"x":45,"y":700,"width":878,"height":13}},{"id":"083c13c0-ae43-46c4-9d7e-e791cbe38956","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to","page_number":584,"box":{"x":197,"y":714,"width":720,"height":13}},{"id":"c6157c7a-fb9f-46a2-bdfc-add035834f8d","block_type":"box","text":"adverse business or economic conditions than is the case for higher ratings.","page_number":584,"box":{"x":197,"y":729,"width":543,"height":12}},{"id":"935f383b-84b3-4e44-88a6-2dc3a78620ee","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":584,"box":{"x":46,"y":748,"width":861,"height":13}},{"id":"ae1d4e71-8bb8-43ea-89a8-b3403b30801c","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":584,"box":{"x":197,"y":762,"width":689,"height":13}},{"id":"b3c0b4b3-e452-44d5-917d-d3e7a844ede3","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":584,"box":{"x":197,"y":776,"width":434,"height":13}},{"id":"d09fff7b-08f2-483e-8b03-f71f69c036f0","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event of","page_number":584,"box":{"x":46,"y":796,"width":871,"height":13}},{"id":"d20b16b6-ad86-4ada-b5bd-6a929fe02666","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":584,"box":{"x":197,"y":810,"width":675,"height":13}},{"id":"08fe67e0-249b-4c64-bc87-0f436925514f","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":584,"box":{"x":197,"y":824,"width":521,"height":13}},{"id":"97a6dc73-e381-4f1e-86c1-6b4926089c75","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":584,"box":{"x":46,"y":844,"width":684,"height":12}},{"id":"d1fb2f28-c4f9-481b-bc07-f52bc7441640","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":584,"box":{"x":46,"y":863,"width":762,"height":13}},{"id":"4a12fa29-3386-450f-a1c0-258985f1d29a","block_type":"box","text":"A-7","page_number":584,"box":{"x":486,"y":916,"width":27,"height":10}},{"id":"4b7b5f10-88d7-46ba-a532-24eadc94a1c2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":584,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"99cb71ea-1e0c-41be-9533-df8ff8e1e01e","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":585,"box":{"x":46,"y":83,"width":760,"height":12}},{"id":"dd51494a-dbf4-42fc-ba08-e1714b02ad96","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":585,"box":{"x":46,"y":102,"width":831,"height":13}},{"id":"e7fdc709-d3be-4bce-a9cc-3da56f9a3d15","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote relative status","page_number":585,"box":{"x":45,"y":125,"width":898,"height":13}},{"id":"f9b5db98-1376-4761-97b6-3780a5fe6163","block_type":"box","text":"within major rating categories.","page_number":585,"box":{"x":45,"y":141,"width":213,"height":13}},{"id":"a439179a-259e-45dd-bd4a-742d7fc4c5f0","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific ra","page_number":585,"box":{"x":45,"y":164,"width":448,"height":13}},{"id":"797dc279-6b46-46ee-967e-44d107e45d71","block_type":"box","text":"ting levels (‘AA+’; ‘AA’; ‘AA–’; each a rating level). Such suffixes","page_number":585,"box":{"x":494,"y":164,"width":447,"height":13}},{"id":"5ca51ede-8466-455c-80c6-85b1aa2b0e55","block_type":"box","text":"are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating category of ‘F1’, a ‘+’ may be","page_number":585,"box":{"x":46,"y":180,"width":869,"height":12}},{"id":"bc2ed2bf-7fa9-40ad-a4c1-3f4baef620a9","block_type":"box","text":"appended.","page_number":585,"box":{"x":46,"y":195,"width":70,"height":13}},{"id":"b5f43b91-0ebc-4dca-a24c-55afdb86187c","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":585,"box":{"x":45,"y":223,"width":570,"height":13}},{"id":"a4474f26-a344-45db-ba95-2675e08c6524","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on th","page_number":585,"box":{"x":45,"y":249,"width":451,"height":13}},{"id":"2cbebb08-5d51-44c0-bb3f-2773d42f1cdf","block_type":"box","text":"e short-term vulnerability to default of the rated entity and relates","page_number":585,"box":{"x":497,"y":249,"width":455,"height":13}},{"id":"759c45fc-2874-4247-b718-88d812405ee7","block_type":"box","text":"to the capacity to meet financial obligations in accordance with th","page_number":585,"box":{"x":45,"y":265,"width":458,"height":13}},{"id":"3e8df40b-e412-4669-b96a-df510e592155","block_type":"box","text":"e documentation governing the relevant obligation. Short-term","page_number":585,"box":{"x":504,"y":265,"width":434,"height":13}},{"id":"d4eace84-e3eb-437f-9c7a-8de711eddf6d","block_type":"box","text":"deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to obligations whose initial maturity is viewed as","page_number":585,"box":{"x":46,"y":280,"width":898,"height":13}},{"id":"5fa80beb-0bc1-42b0-82a8-e3295287725c","block_type":"box","text":"“short term” based on market convention. Typically, this means up to 13 months for corporate, sovereign, and structured","page_number":585,"box":{"x":47,"y":296,"width":846,"height":13}},{"id":"83f92e6d-6bd4-4f53-bbee-6827aa233051","block_type":"box","text":"obligations and up to 36 months for obligations in U.S. public finance markets.","page_number":585,"box":{"x":46,"y":311,"width":548,"height":13}},{"id":"1941317f-24b0-4df5-b7e7-7ad96463da80","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":585,"box":{"x":45,"y":335,"width":268,"height":12}},{"id":"976b870e-2d94-4bc3-b1e8-96aaeb3ff296","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":585,"box":{"x":45,"y":357,"width":870,"height":12}},{"id":"8860fb28-af75-46b4-b9b5-7b8990629e9a","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":585,"box":{"x":197,"y":371,"width":708,"height":13}},{"id":"4e9069dc-0d80-48f8-8f05-c1b676e3d0e5","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":585,"box":{"x":45,"y":390,"width":801,"height":13}},{"id":"ac799ded-a273-4873-9016-324fb89d6dba","block_type":"box","text":"commitments.","page_number":585,"box":{"x":197,"y":405,"width":101,"height":9}},{"id":"7c3b2f59-6b7e-4056-8939-5090934a75b8","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":585,"box":{"x":45,"y":424,"width":894,"height":13}},{"id":"614c5b4b-0e06-468e-b510-e784f04b1134","block_type":"box","text":"adequate.","page_number":585,"box":{"x":197,"y":438,"width":68,"height":13}},{"id":"8823bff3-2d84-4ccb-a557-f409e79b243c","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial commitments,","page_number":585,"box":{"x":46,"y":457,"width":905,"height":13}},{"id":"b3db14fe-f523-4519-ab2b-5b5f38e42dec","block_type":"box","text":"plus heightened vulnerability to near term adverse changes in financial and economic conditions.","page_number":585,"box":{"x":197,"y":472,"width":701,"height":12}},{"id":"61dad9f1-ce21-43ce-ba00-cb24635a7a5a","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":585,"box":{"x":46,"y":491,"width":579,"height":13}},{"id":"bb97751d-b846-4d6e-b9a3-30d35acef7f0","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial commitments,","page_number":585,"box":{"x":46,"y":510,"width":892,"height":13}},{"id":"ec0f0cf2-1e80-4229-8cda-744b2bdbaf8d","block_type":"box","text":"although it continues to meet other financial obligations. Typically applicable to entity ratings only.","page_number":585,"box":{"x":197,"y":525,"width":724,"height":12}},{"id":"eaef8f46-2e37-4438-8a2f-be2ded781478","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term obligation.","page_number":585,"box":{"x":45,"y":544,"width":885,"height":13}},{"id":"83200061-9e16-42c5-9a20-073a31357e4c","block_type":"box","text":"A-8","page_number":585,"box":{"x":486,"y":916,"width":26,"height":10}},{"id":"079376ac-0052-4ea8-bda8-2e9ea0510a3f","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":585,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"1e293287-0222-4253-a31b-1cb008bc8d17","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":586,"box":{"x":380,"y":87,"width":508,"height":12}},{"id":"b771781e-c1a6-4bda-a3ce-f1fd20477307","block_type":"box","text":"Appendix B","page_number":586,"box":{"x":453,"y":118,"width":98,"height":11}},{"id":"754edb1e-ad23-4bb3-82be-b64c6dc74b25","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":586,"box":{"x":230,"y":148,"width":544,"height":12}},{"id":"023c23fc-f9ca-4f66-ad3b-e1892abcb96d","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":586,"box":{"x":229,"y":178,"width":547,"height":12}},{"id":"f239b810-4305-440b-9892-0ed3b3b2210b","block_type":"box","text":"Effective Date: January 1, 2025","page_number":586,"box":{"x":383,"y":209,"width":239,"height":12}},{"id":"ea7220a6-b3f7-4e71-beac-4401c3ca71c9","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":586,"box":{"x":116,"y":247,"width":566,"height":12}},{"id":"59e7fa9b-9540-4a3a-be2c-07ae9b4140df","block_type":"box","text":"‘","page_number":586,"box":{"x":116,"y":276,"width":16,"height":12}},{"id":"9fe3b489-7e17-4613-b41f-7f58bb93665e","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":586,"box":{"x":132,"y":277,"width":444,"height":12}},{"id":"e6bd44ee-d0c8-410f-b192-2c0603785568","block_type":"box","text":"È","page_number":586,"box":{"x":116,"y":292,"width":16,"height":12}},{"id":"388162bd-dcc1-4745-b1d1-b23bc6b1a9fc","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":586,"box":{"x":132,"y":293,"width":663,"height":12}},{"id":"7132f265-4d76-4ae9-bfe3-34ce2acf0642","block_type":"box","text":"‘","page_number":586,"box":{"x":116,"y":307,"width":16,"height":12}},{"id":"bf31f1fc-c8bb-4807-8120-19be560028f4","block_type":"box","text":"Money Market Funds","page_number":586,"box":{"x":132,"y":308,"width":180,"height":12}},{"id":"7f5452ce-20ea-41f3-8ec2-bcccd66b7dea","block_type":"box","text":"‘","page_number":586,"box":{"x":116,"y":323,"width":16,"height":12}},{"id":"01e37be9-3df2-4da3-bb10-2590d4f0c5f4","block_type":"box","text":"Closed-End Funds","page_number":586,"box":{"x":132,"y":324,"width":161,"height":9}},{"id":"a0c3c5d3-98de-46a0-a663-c3f1604deb27","block_type":"box","text":"‘","page_number":586,"box":{"x":116,"y":338,"width":16,"height":12}},{"id":"676a51ad-ff02-4c6e-94d7-ae28d04ff11e","block_type":"box","text":"Other","page_number":586,"box":{"x":132,"y":339,"width":64,"height":10}},{"id":"c4b8e8b5-2ee8-42cc-811a-4d2285db51fa","block_type":"box","text":"Objective and Scope","page_number":586,"box":{"x":116,"y":369,"width":170,"height":13}},{"id":"444dbd35-3303-419a-b086-6dbd9d886525","block_type":"box","text":"Set forth below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":586,"box":{"x":116,"y":400,"width":675,"height":12}},{"id":"8b701890-b8a0-4b3f-abe8-f14c571bb526","block_type":"box","text":"Policy / Document Requirements and Statements","page_number":586,"box":{"x":117,"y":430,"width":396,"height":12}},{"id":"8d115a2a-b2d7-4ef2-8b53-fc825a08d228","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":586,"box":{"x":116,"y":461,"width":730,"height":12}},{"id":"09a3c3be-8854-4b7d-ad30-b97ed9019806","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the","page_number":586,"box":{"x":117,"y":476,"width":743,"height":12}},{"id":"f07ace7e-06c8-4322-8e9a-8ed57fdeebd4","block_type":"box","text":"oversight of voting proxies relating to portfolio securities of the Funds, and have determined that it is in","page_number":586,"box":{"x":116,"y":492,"width":765,"height":12}},{"id":"77d41589-e567-4b32-b964-550028099bdc","block_type":"box","text":"the best interests of the Funds and their shareholders to delegate the responsibility to vote proxies to","page_number":586,"box":{"x":116,"y":507,"width":754,"height":12}},{"id":"359254d1-5def-4317-aab2-c43bdfb2cc22","block_type":"box","text":"BlackRock, subject to the principles outlined in this Policy, as part of BlackRock’s authority to manage,","page_number":586,"box":{"x":117,"y":523,"width":764,"height":12}},{"id":"4362cf0f-494f-4462-b489-7b28c5eb3f2b","block_type":"box","text":"acquire and dispose of account assets, all as contemplated by the Funds’ respective investment","page_number":586,"box":{"x":116,"y":538,"width":718,"height":12}},{"id":"a70fafe0-26bb-4b8b-a132-76b85925c795","block_type":"box","text":"management agreements.","page_number":586,"box":{"x":117,"y":554,"width":200,"height":12}},{"id":"e31115e8-953b-4778-ad46-b18784cfa86c","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":586,"box":{"x":117,"y":584,"width":766,"height":12}},{"id":"5014be07-5e6a-4584-855d-f828a683bbb6","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed","page_number":586,"box":{"x":117,"y":600,"width":768,"height":12}},{"id":"eb3f1835-8417-48d0-b15d-268a170e468c","block_type":"box","text":"income index Funds managed by BlackRock. 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Potential material conflicts, and the resultant","page_number":586,"box":{"x":117,"y":784,"width":736,"height":12}},{"id":"2e8ad4fb-db7d-4561-99bb-b49a2f690e8e","block_type":"box","text":"potential for undue influence, might be due to a relationship between the investee company (or any","page_number":586,"box":{"x":117,"y":800,"width":734,"height":12}},{"id":"8f9675be-141b-456b-9c4f-23efb8e4dcd6","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates or employees,","page_number":586,"box":{"x":116,"y":815,"width":752,"height":12}},{"id":"608f0039-a82a-4b0f-8d15-06fef16ab3b7","block_type":"box","text":"or a Fund or a Fund’s affiliates. BlackRock has taken certain steps to mitigate potential conflicts, which","page_number":586,"box":{"x":116,"y":831,"width":767,"height":12}},{"id":"c726e812-95c5-4823-b082-c41e7072c76c","block_type":"box","text":"are outlined in detail in the Guidelines. 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It also may apply to holdings in BlackRock’s","page_number":591,"box":{"x":116,"y":242,"width":737,"height":12}},{"id":"63c4cbc2-6801-485b-83ab-2069ca797962","block_type":"box","text":"index and active fixed income strategies, to the extent those strategies hold voting securities or","page_number":591,"box":{"x":117,"y":258,"width":709,"height":12}},{"id":"3f1c9834-9566-4526-af87-c3d4b97b7594","block_type":"box","text":"conduct issuer engagements. The guidelines are not prescriptive as active portfolio managers have","page_number":591,"box":{"x":116,"y":273,"width":742,"height":12}},{"id":"de65cdc5-4b54-4a61-8577-4e2d0f00d607","block_type":"box","text":"discretion as to how they integrate these guidelines within their investment processes in light of their","page_number":591,"box":{"x":116,"y":289,"width":748,"height":12}},{"id":"dfd946d7-f337-4721-9181-07f5eb1cb2e6","block_type":"box","text":"clients’ or funds’ investment objectives. There are separate, independently developed principles and","page_number":591,"box":{"x":116,"y":304,"width":748,"height":12}},{"id":"e1cae78e-761c-472a-ba6d-28954f4c3191","block_type":"box","text":"voting policies that are applied to BlackRock’s index equity investments by a distinct and independent","page_number":591,"box":{"x":116,"y":320,"width":758,"height":12}},{"id":"dfaaa7a6-3c54-49f8-9f9c-e4e97a9b0f14","block_type":"box","text":"function, BlackRock Investment Stewardship.","page_number":591,"box":{"x":116,"y":335,"width":341,"height":12}},{"id":"a0264055-8c4f-4f6a-a2a0-569fe049e15d","block_type":"box","text":"1","page_number":591,"box":{"x":144,"y":789,"width":2,"height":5}},{"id":"1913ca8f-03cc-49e2-9f60-7ebaf52e354d","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":591,"box":{"x":170,"y":789,"width":653,"height":10}},{"id":"b690e0f5-921f-431e-a12a-dd7c485dbdf8","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":591,"box":{"x":170,"y":802,"width":685,"height":10}},{"id":"219bf612-a22b-4ea1-8356-23339d5bc778","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities or","page_number":591,"box":{"x":170,"y":815,"width":709,"height":10}},{"id":"ae08ad59-e338-4afc-8b76-82d6b653ec51","block_type":"box","text":"conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":591,"box":{"x":170,"y":828,"width":676,"height":10}},{"id":"bad4b551-730f-4a23-a70f-29d4118e0d59","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":591,"box":{"x":171,"y":841,"width":631,"height":9}},{"id":"0b78c341-c21f-48ca-bafd-e2d7182e70a6","block_type":"box","text":"2","page_number":591,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"a77c6434-8330-4b0d-a7a5-01562dad2358","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part of a","page_number":591,"box":{"x":171,"y":854,"width":709,"height":9}},{"id":"0ac4abfd-c2ed-4bec-8aff-3cd2085ace60","block_type":"box","text":"strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a result,","page_number":591,"box":{"x":170,"y":867,"width":692,"height":9}},{"id":"b418165c-1120-4c65-9ca0-a4c3e0029fb8","block_type":"box","text":"there are two stewardship teams, which operate independently of one another and have separate voting policies.","page_number":591,"box":{"x":170,"y":880,"width":669,"height":9}},{"id":"5c4b171f-e142-4e16-bc56-1a0d998f24b5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":591,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"f16a6ab3-7fec-4f41-a3e4-797b5b1ec46b","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":591,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"f05fc706-e615-41d8-97bc-d22198a5d9fc","block_type":"box","text":"3","page_number":591,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"8c14a6a8-baf2-4d08-8d83-d9cfa0a904d7","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":591,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9881ee0d-6a5f-4f5a-846f-36e380cdf7a3","block_type":"box","text":"Introduction to BlackRock","page_number":592,"box":{"x":396,"y":87,"width":213,"height":10}},{"id":"d018c2e8-c645-4d5e-b873-534da3375079","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its","page_number":592,"box":{"x":117,"y":118,"width":741,"height":12}},{"id":"f6d3adf6-42bc-4462-a9c5-06ae3dd98719","block_type":"box","text":"own — it belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio","page_number":592,"box":{"x":116,"y":134,"width":756,"height":12}},{"id":"27ccd1c9-b4a2-4c77-8893-a6743fe1b280","block_type":"box","text":"construction decisions. As a fiduciary, BlackRock invests on clients’ behalf to help them meet their","page_number":592,"box":{"x":116,"y":149,"width":733,"height":12}},{"id":"ae7e510e-ee21-4124-a4fb-47774ebc5c0c","block_type":"box","text":"investment objectives. The firm does this by understanding clients’ long-term investment objectives","page_number":592,"box":{"x":117,"y":165,"width":739,"height":12}},{"id":"7c11a737-27bd-445a-ae7f-aba032897199","block_type":"box","text":"and offering choice on how and where they wish to invest their money. BlackRock then helps clients","page_number":592,"box":{"x":116,"y":180,"width":747,"height":12}},{"id":"5c8f08fd-3b92-48b8-a3ec-08257c05ec11","block_type":"box","text":"seek the best risk-adjusted returns based on those choices, underpinning this work with research, data","page_number":592,"box":{"x":116,"y":196,"width":768,"height":12}},{"id":"409c69a7-511c-4904-a64c-b5799c9a7972","block_type":"box","text":"and analytics.","page_number":592,"box":{"x":116,"y":211,"width":107,"height":12}},{"id":"f3a345ca-df8f-4595-bf0e-256a98734d25","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our","page_number":592,"box":{"x":116,"y":242,"width":748,"height":12}},{"id":"7148173b-4456-4e1b-8704-83addc286ad7","block_type":"box","text":"clients. As stewards of our clients’ assets, we engage with companies to discuss the corporate","page_number":592,"box":{"x":116,"y":258,"width":706,"height":12}},{"id":"3ea7c1a5-7c94-4e70-9096-c567b86464f2","block_type":"box","text":"governance and business practices that, in our experience, support companies in delivering durable,","page_number":592,"box":{"x":116,"y":273,"width":751,"height":12}},{"id":"c52fe757-2cea-4a2c-b119-491ae37cc4f7","block_type":"box","text":"risk-adjusted financial returns over time. We are committed to building strong relationships through","page_number":592,"box":{"x":117,"y":289,"width":736,"height":12}},{"id":"811b2f97-ed34-4082-8e51-14cfd4952738","block_type":"box","text":"constructive, ongoing dialogue with the boards and executive management of the companies in which","page_number":592,"box":{"x":116,"y":304,"width":760,"height":12}},{"id":"0d95e9c6-e6ad-4cff-9b87-433d80d339c2","block_type":"box","text":"our clients are invested.","page_number":592,"box":{"x":116,"y":320,"width":182,"height":9}},{"id":"e9a72268-12d7-4649-8800-81e76f81d3d9","block_type":"box","text":"About BlackRock Active Investment Stewardship","page_number":592,"box":{"x":303,"y":351,"width":398,"height":11}},{"id":"fb656b34-a72d-4c85-8641-f2c59bc11d2a","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management","page_number":592,"box":{"x":117,"y":382,"width":764,"height":12}},{"id":"e7e93652-1e09-45c8-8f95-ae54cee8d001","block_type":"box","text":"Group and manages BlackRock’s stewardship engagement and voting on behalf of clients invested in","page_number":592,"box":{"x":117,"y":397,"width":758,"height":12}},{"id":"82bf7066-04eb-4c71-b5d1-6d7ba60cc6da","block_type":"box","text":"active strategies globally. BAIS is also responsible for engagement with issuers in index fixed income","page_number":592,"box":{"x":116,"y":413,"width":755,"height":12}},{"id":"52e2339c-2942-426a-9979-7adb68808ef3","block_type":"box","text":"strategies, where appropriate. Our activities are informed by these Global Engagement and Voting","page_number":592,"box":{"x":116,"y":428,"width":735,"height":12}},{"id":"137dc4e2-f7e6-466b-ba7f-8840334a2865","block_type":"box","text":"Guidelines (the “Guidelines”) and insights from active investment analysts and portfolio managers, with","page_number":592,"box":{"x":117,"y":444,"width":768,"height":12}},{"id":"0d90c65b-f1f3-4ce0-aeb4-8badde9370c1","block_type":"box","text":"whom we work closely in engaging companies and voting at shareholder meetings.","page_number":592,"box":{"x":116,"y":459,"width":622,"height":12}},{"id":"75241ab2-c6c6-4a0a-915c-cd49a53dbab3","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within","page_number":592,"box":{"x":117,"y":490,"width":680,"height":12}},{"id":"fb49ecc6-806b-44bb-8faf-e7f05a8dfc76","block_type":"box","text":"fundamental active investing.","page_number":592,"box":{"x":116,"y":506,"width":215,"height":12}},{"id":"a4d0a2f2-ac50-4bfa-b077-29d6d1d8d3a6","block_type":"box","text":"3","page_number":592,"box":{"x":333,"y":506,"width":5,"height":6}},{"id":"29e8f151-1f74-41b9-a270-6831340dd514","block_type":"box","text":"Through direct dialogue with company leadership, we seek to","page_number":592,"box":{"x":339,"y":506,"width":466,"height":12}},{"id":"29ec44b6-71ae-48ea-b5c8-617aeac00e08","block_type":"box","text":"understand their businesses and how they manage risks and opportunities to deliver durable, risk","page_number":592,"box":{"x":117,"y":521,"width":727,"height":12}},{"id":"a8893b95-15c1-4d10-8695-0bac505d20ef","block_type":"box","text":"adjusted financial returns. Portfolio managers and stewardship specialists may engage jointly or","page_number":592,"box":{"x":116,"y":537,"width":716,"height":12}},{"id":"e7a5f688-8884-4206-82ca-e53a581e377c","block_type":"box","text":"independently on material corporate governance matters. Our discussions focus on topics relevant to a","page_number":592,"box":{"x":117,"y":552,"width":769,"height":12}},{"id":"6a4a2c0f-d5c3-4912-a84d-c5da44496f74","block_type":"box","text":"company’s success over time, including governance and leadership, corporate strategy, capital","page_number":592,"box":{"x":116,"y":568,"width":711,"height":12}},{"id":"c984a5ef-1877-460d-af18-974b7b226fb9","block_type":"box","text":"structure and financial performance, operations and material sustainability-related risks, as well as","page_number":592,"box":{"x":116,"y":583,"width":734,"height":12}},{"id":"416edd87-7229-49cc-b82d-03373e2f419f","block_type":"box","text":"macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are","page_number":592,"box":{"x":117,"y":599,"width":717,"height":12}},{"id":"3b944bd6-9326-4a4b-9519-221237313170","block_type":"box","text":"generally supportive of management teams that have a track record of financial value creation. We aim","page_number":592,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"44622a9b-fbd1-49fb-86e2-0c63c64fedee","block_type":"box","text":"to build and maintain strong relationships with company leadership based on open dialogue and","page_number":592,"box":{"x":116,"y":630,"width":717,"height":12}},{"id":"c2ae1ab6-2769-4007-871f-ee9c6801a104","block_type":"box","text":"mutual respect.","page_number":592,"box":{"x":117,"y":645,"width":118,"height":12}},{"id":"3de976a1-9d05-443c-b2f7-4d31e7b41f93","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the","page_number":592,"box":{"x":117,"y":676,"width":744,"height":12}},{"id":"10b02063-2141-44cd-ba88-c874dd32e6ef","block_type":"box","text":"latitude each portfolio manager has to make independent voting decisions on their holdings. For","page_number":592,"box":{"x":117,"y":692,"width":711,"height":12}},{"id":"9fa1f24c-b13a-4477-8811-6cc27f28faf5","block_type":"box","text":"example, BAIS will generally vote the holdings in Systematic Active Equity portfolios in accordance","page_number":592,"box":{"x":116,"y":707,"width":732,"height":12}},{"id":"106c216d-0a2a-4ced-8be2-d9a3748e2c3b","block_type":"box","text":"with these guidelines. We provide voting recommendations to fundamental equity portfolio managers,","page_number":592,"box":{"x":116,"y":723,"width":751,"height":12}},{"id":"4237db62-81e9-4bb5-bec2-1dd1d3fddf32","block_type":"box","text":"who may determine to vote differently based on each portfolio’s investment objectives and strategy.","page_number":592,"box":{"x":116,"y":738,"width":737,"height":12}},{"id":"405beb0b-f8d9-4853-98af-7182ea995dd8","block_type":"box","text":"3","page_number":592,"box":{"x":143,"y":841,"width":4,"height":5}},{"id":"539da50c-1106-479b-8236-05baddcfbd55","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":592,"box":{"x":170,"y":841,"width":660,"height":9}},{"id":"63f6a402-5817-44cf-9ff9-6d04fd7afc20","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":592,"box":{"x":170,"y":854,"width":695,"height":9}},{"id":"edc7be4d-1811-4aae-816b-353a59283eba","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the effect,","page_number":592,"box":{"x":170,"y":867,"width":707,"height":9}},{"id":"99169efb-6861-4125-9606-66bbfc76b994","block_type":"box","text":"of changing or influencing control of the company.","page_number":592,"box":{"x":170,"y":880,"width":295,"height":9}},{"id":"b4bb10f7-74d7-4436-a608-f9ba305e2176","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":592,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"e9b4fd5f-89df-4b81-9a28-3d8aa672ee0a","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":592,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"58c258bd-e1a9-47d5-b22d-ca2acd7833cc","block_type":"box","text":"4","page_number":592,"box":{"x":874,"y":909,"width":9,"height":9}},{"id":"32ee2581-2dd6-4ad5-b1ee-8597515f0d01","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":592,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"88c2a5d5-8f02-4259-a133-40167a89de56","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":593,"box":{"x":116,"y":87,"width":755,"height":12}},{"id":"a2643730-f51f-4e2c-aee5-28a17ae41aef","block_type":"box","text":"management teams and board directors","page_number":593,"box":{"x":117,"y":103,"width":297,"height":12}},{"id":"e8b5f393-3f6a-4796-8928-29cb30ae8dd1","block_type":"box","text":"4","page_number":593,"box":{"x":414,"y":103,"width":6,"height":6}},{"id":"efc92185-e59f-4222-8c22-82d71e037ac2","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We","page_number":593,"box":{"x":424,"y":103,"width":461,"height":12}},{"id":"0f270164-6e9e-4697-bc33-fabf57c23a54","block_type":"box","text":"recognize that accepted corporate governance norms can differ across markets, and believe these","page_number":593,"box":{"x":117,"y":118,"width":736,"height":12}},{"id":"68ad3144-1c7d-4070-a97a-5096b47e4c66","block_type":"box","text":"guidelines represent globally applicable elements of governance that support a company’s ability to","page_number":593,"box":{"x":116,"y":134,"width":741,"height":12}},{"id":"b0e529a7-1d7a-46d9-b9e2-9a29d28f0ed0","block_type":"box","text":"manage material risks and opportunities and deliver financial returns to investors. Generally, we","page_number":593,"box":{"x":117,"y":149,"width":715,"height":12}},{"id":"274c85dc-4902-4c9f-a6cc-e12f1b3d6a6e","block_type":"box","text":"believe companies should observe accepted corporate governance norms within their local markets or,","page_number":593,"box":{"x":117,"y":165,"width":768,"height":12}},{"id":"0a625b8e-e835-4eb9-972e-f96ba9802fe2","block_type":"box","text":"particularly in markets without well-established norms, aspire to widely recognized international best","page_number":593,"box":{"x":117,"y":180,"width":746,"height":12}},{"id":"6afefd42-9dd3-4b5c-9f4e-053808bb3ad1","block_type":"box","text":"practices. As one of many minority shareholders, BlackRock cannot — and does not try to — direct a","page_number":593,"box":{"x":117,"y":196,"width":754,"height":12}},{"id":"020befff-4175-420d-8d5f-3e39f16fdee5","block_type":"box","text":"company’s strategy or its implementation. We look to companies to provide disclosures that explain","page_number":593,"box":{"x":116,"y":211,"width":743,"height":12}},{"id":"f40aef1d-7646-47a4-93c4-7cca1e361364","block_type":"box","text":"how their approach to corporate governance best aligns with the financial interests of their investors.","page_number":593,"box":{"x":117,"y":227,"width":749,"height":12}},{"id":"237ea58e-d3f0-4d37-8d4f-8008afb4e7b9","block_type":"box","text":"Our approach to stewardship within active equities","page_number":593,"box":{"x":296,"y":258,"width":412,"height":11}},{"id":"c74b1a7e-a37a-4847-9d84-0f1c7e4ea14c","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of","page_number":593,"box":{"x":116,"y":289,"width":713,"height":12}},{"id":"a2318f0d-8df5-4720-8feb-a612f42070fd","block_type":"box","text":"corporate governance. The voting rights attached to clients’ holdings are an important mechanism for","page_number":593,"box":{"x":116,"y":304,"width":756,"height":12}},{"id":"02a0f82f-becc-4555-85f1-f889a39efbe8","block_type":"box","text":"investors to express support for, or concern about, a company’s performance. As a fiduciary,","page_number":593,"box":{"x":117,"y":320,"width":692,"height":12}},{"id":"cf0ca792-61ff-4286-9ff2-a382dbca74e6","block_type":"box","text":"BlackRock is legally required to make proxy voting determinations, on behalf of clients who have","page_number":593,"box":{"x":117,"y":335,"width":720,"height":12}},{"id":"da6bc468-37ad-410e-98da-d92290a6b157","block_type":"box","text":"delegated voting authority to us, in a manner consistent with BlackRock’s contractual arrangements","page_number":593,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"334aecd5-88d1-4d97-92a2-5d4f4a95f276","block_type":"box","text":"with clients and funds.","page_number":593,"box":{"x":116,"y":366,"width":170,"height":10}},{"id":"3ca1ebdf-ec13-45ad-a57f-0bc90783b816","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As","page_number":593,"box":{"x":117,"y":397,"width":740,"height":12}},{"id":"49df747c-7826-4b41-aca6-6e67bb54f03d","block_type":"box","text":"indicated below, we may vote against management recommendations when we have concerns about","page_number":593,"box":{"x":117,"y":413,"width":755,"height":12}},{"id":"a7fde4d0-54d4-4195-9aba-3390902dc605","block_type":"box","text":"how companies are serving the financial interests of our clients as their shareholders. BAIS takes a","page_number":593,"box":{"x":117,"y":428,"width":740,"height":12}},{"id":"f243ea25-ed42-4bad-8d0b-1fc6b8d98bb9","block_type":"box","text":"globally consistent approach to voting but considers the different corporate governance regulations and","page_number":593,"box":{"x":116,"y":444,"width":772,"height":12}},{"id":"f21ca9a0-1ea3-4c29-9b13-4f0104902791","block_type":"box","text":"norms across markets. Votes are determined on a case-by-case basis, in the context of a company’s","page_number":593,"box":{"x":117,"y":459,"width":753,"height":12}},{"id":"18a89d26-b64f-46d3-a6c9-0a1af9efde9c","block_type":"box","text":"situation and the investment mandate we have from clients. Please see page 19 for more information","page_number":593,"box":{"x":116,"y":475,"width":756,"height":12}},{"id":"4495e570-325a-4c5e-856d-09a38832687e","block_type":"box","text":"about how we fulfill and oversee our investment stewardship responsibilities for BlackRock’s non-index","page_number":593,"box":{"x":116,"y":490,"width":768,"height":12}},{"id":"3e6cfab6-2431-44f8-b3fb-23af6d5c30e8","block_type":"box","text":"equity strategies.","page_number":593,"box":{"x":116,"y":506,"width":125,"height":12}},{"id":"ee1f5529-8c37-4bf2-8031-f43c63c2872f","block_type":"box","text":"5","page_number":593,"box":{"x":243,"y":506,"width":6,"height":6}},{"id":"6997dcc6-f029-4f09-87a6-5e36381ee097","block_type":"box","text":"Our approach to stewardship within fixed income","page_number":593,"box":{"x":303,"y":537,"width":399,"height":12}},{"id":"ea196e79-ffb1-4538-a2a3-18e7da147250","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer","page_number":593,"box":{"x":116,"y":568,"width":695,"height":12}},{"id":"41a3927f-05c5-4994-9c21-9b5bc43bcef0","block_type":"box","text":"engagement is a component of fixed income investment strategies at BlackRock, particularly for those","page_number":593,"box":{"x":116,"y":583,"width":762,"height":12}},{"id":"5f02aa74-e115-4fe6-afd8-99dc703295eb","block_type":"box","text":"with sustainability objectives in addition to financial objectives. Most corporate governance-related","page_number":593,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"5f55d225-c497-4c74-b843-764eb95d3d73","block_type":"box","text":"fixed income engagements are undertaken in conjunction with the active investment stewardship team,","page_number":593,"box":{"x":116,"y":614,"width":770,"height":12}},{"id":"3ab0d5ac-fac9-4120-ac14-f53d07910cb6","block_type":"box","text":"and often active equity investors. In addition to the topics listed below, engagement with fixed income","page_number":593,"box":{"x":116,"y":630,"width":757,"height":12}},{"id":"329656c4-51f7-473b-9598-32054169c55b","block_type":"box","text":"investment teams may help inform an issuer’s approach to structuring specialist issuances and the","page_number":593,"box":{"x":117,"y":645,"width":736,"height":12}},{"id":"c7649715-c896-4950-9d36-116bd6fb3ef6","block_type":"box","text":"standard terms and information in bond documentation.","page_number":593,"box":{"x":116,"y":661,"width":411,"height":9}},{"id":"bf3ea886-e614-40af-8230-0a71b9ec82a3","block_type":"box","text":"4","page_number":593,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"14a9f5d3-e671-4dea-816f-dad358c2a296","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory boards","page_number":593,"box":{"x":171,"y":828,"width":710,"height":10}},{"id":"3f760c87-9801-4e65-bc7d-87e43e7aa1bd","block_type":"box","text":"and their members, where relevant.","page_number":593,"box":{"x":170,"y":841,"width":210,"height":9}},{"id":"51885896-2f17-4692-a44d-0b0d36e3165b","block_type":"box","text":"5","page_number":593,"box":{"x":143,"y":854,"width":4,"height":5}},{"id":"d098e428-a8d3-4adb-949e-dffdb6830eee","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":593,"box":{"x":171,"y":854,"width":685,"height":9}},{"id":"51224efd-5201-48bb-ac12-b230eb860d37","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":593,"box":{"x":170,"y":867,"width":678,"height":9}},{"id":"1ab151f2-0e1a-436f-a7da-125726611362","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":593,"box":{"x":170,"y":880,"width":458,"height":9}},{"id":"a63e23ed-2f73-43bf-9616-4b5d99f3338c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":593,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"9c1db0df-b186-429d-8355-ef8f6a1a27b5","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":593,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"76c28525-4922-4269-832d-120ff874c267","block_type":"box","text":"5","page_number":593,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"f5708152-318c-4e5b-b6e8-2732158f7359","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":593,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4781f180-fc55-4fa3-86da-6ff72a6970e2","block_type":"box","text":"Boards of Directors","page_number":594,"box":{"x":422,"y":87,"width":161,"height":10}},{"id":"df541f89-f5d8-4a6b-b3bb-4601d2670ff1","block_type":"box","text":"Roles and responsibilities","page_number":594,"box":{"x":117,"y":118,"width":212,"height":12}},{"id":"b37ca65a-a7be-4ffc-a51c-173a611dcf3d","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board","page_number":594,"box":{"x":116,"y":149,"width":770,"height":12}},{"id":"a0505a05-a47b-4396-b1a1-51ef5544373a","block_type":"box","text":"of directors that is able to advise and supervise management in an independent and objective","page_number":594,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"ee57ab3e-e6c8-4e31-853a-da406d66e0ea","block_type":"box","text":"manner.","page_number":594,"box":{"x":117,"y":183,"width":59,"height":7}},{"id":"030ed010-9b04-4a85-a04a-f624e9c11432","block_type":"box","text":"6","page_number":594,"box":{"x":178,"y":180,"width":5,"height":6}},{"id":"5e6a7ab6-f72c-48aa-8420-9917881f06da","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment","page_number":594,"box":{"x":116,"y":211,"width":762,"height":12}},{"id":"b7d97440-80fb-4d02-9e6d-4e83aa56452b","block_type":"box","text":"and realization of a company’s strategy, purpose and culture. These constructs are interdependent","page_number":594,"box":{"x":116,"y":227,"width":738,"height":12}},{"id":"49dbdc54-0da5-408c-a555-eb931fe4f5ba","block_type":"box","text":"and, when aligned, can better position a company to be resilient in the face of a changing business","page_number":594,"box":{"x":116,"y":242,"width":739,"height":12}},{"id":"f9a94368-e3d1-4d25-b2eb-4ac31a74985e","block_type":"box","text":"environment, help reduce the risks of corporate or employee misconduct, and attract and retain the","page_number":594,"box":{"x":116,"y":258,"width":740,"height":12}},{"id":"7f560f34-660e-4260-80be-4a561a6b34a7","block_type":"box","text":"caliber of workers necessary to deliver financial performance over time.","page_number":594,"box":{"x":116,"y":273,"width":535,"height":12}},{"id":"a5ada3cb-4f0f-4f74-a3ce-ca8f22d22a44","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies","page_number":594,"box":{"x":117,"y":304,"width":754,"height":12}},{"id":"bebd7814-4473-4602-a00b-45952e4ef32d","block_type":"box","text":"and procedures are in place to help management meet its strategic objectives within an agreed risk","page_number":594,"box":{"x":116,"y":320,"width":742,"height":12}},{"id":"d7b1da9d-13e5-4cb7-b6eb-9e27042b73f9","block_type":"box","text":"tolerance.","page_number":594,"box":{"x":116,"y":335,"width":78,"height":10}},{"id":"583cf76f-d3b0-4309-9b31-114b7d5c6b3e","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the","page_number":594,"box":{"x":116,"y":366,"width":739,"height":12}},{"id":"6fb1139f-5c77-4623-a573-91dc6e4a201b","block_type":"box","text":"chief executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the","page_number":594,"box":{"x":116,"y":382,"width":704,"height":12}},{"id":"f9dabb47-2c87-4598-b34c-aa96bf16505a","block_type":"box","text":"performance of the CEO and other key executives, determining executive compensation, ensuring a","page_number":594,"box":{"x":117,"y":397,"width":747,"height":12}},{"id":"fd2f627d-df4c-45b9-adab-733d0999ab93","block_type":"box","text":"rigorous audit, overseeing strategy execution and risk management and engaging with shareholders,","page_number":594,"box":{"x":117,"y":413,"width":753,"height":12}},{"id":"1ab17165-7a94-4df5-a6fd-92391f02e5a5","block_type":"box","text":"and other stakeholders, as necessary.","page_number":594,"box":{"x":116,"y":428,"width":289,"height":12}},{"id":"d253195d-7bc6-4577-a787-4a15634c7842","block_type":"box","text":"Composition and effectiveness","page_number":594,"box":{"x":116,"y":467,"width":253,"height":12}},{"id":"765768d4-c12c-4976-9182-7484df5aa82e","block_type":"box","text":"Appointment process","page_number":594,"box":{"x":116,"y":498,"width":177,"height":12}},{"id":"78fe5c67-ca5c-407e-952f-56333edae887","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to","page_number":594,"box":{"x":116,"y":529,"width":708,"height":12}},{"id":"4a30065e-f622-4f3e-8189-bb02eff17647","block_type":"box","text":"ensuring the board is composed of directors with the appropriate mix of skills and experience.","page_number":594,"box":{"x":116,"y":544,"width":700,"height":12}},{"id":"37811d78-71af-43ee-bbd8-643fccf4ee22","block_type":"box","text":"Generally, the board or a sub-committee determines the general criteria given the company’s","page_number":594,"box":{"x":117,"y":560,"width":695,"height":12}},{"id":"73278d13-6f75-4565-a2ac-aab869687224","block_type":"box","text":"circumstances (e.g., sector, maturity, geographic footprint) and any additional criteria for a specific role","page_number":594,"box":{"x":116,"y":575,"width":767,"height":12}},{"id":"52aecd1a-a438-407c-b063-f5e0e5b2ebca","block_type":"box","text":"being filled (e.g., financial expertise, industry track record). To inform the process, we encourage","page_number":594,"box":{"x":117,"y":591,"width":721,"height":12}},{"id":"73d8c3f7-eb16-4dfb-b4bf-2a3961f38357","block_type":"box","text":"companies to review the skills and experience of incumbent directors to identify any gaps and whether","page_number":594,"box":{"x":116,"y":606,"width":764,"height":12}},{"id":"beadcf91-e88f-4f19-9189-92faedd9ca19","block_type":"box","text":"the skills and experience of a director candidate would be additive. We welcome disclosures that","page_number":594,"box":{"x":116,"y":622,"width":722,"height":12}},{"id":"4e11ff06-ba7e-49e6-b08c-f2b4c91b2ef8","block_type":"box","text":"explain how the board considered different skills and experience to ensure that the directors","page_number":594,"box":{"x":116,"y":637,"width":687,"height":12}},{"id":"f91c1ba4-e6fa-4ed0-a6a7-d3001fe60bfd","block_type":"box","text":"collectively can be effective in fulfilling their responsibilities. We assess a company’s board","page_number":594,"box":{"x":116,"y":653,"width":678,"height":12}},{"id":"aa139287-3850-4e71-b77c-56ffa681fa0a","block_type":"box","text":"composition against that of its peer group and local market requirements.","page_number":594,"box":{"x":116,"y":668,"width":542,"height":12}},{"id":"11c8e120-bd44-437b-aa8a-7a886642e37c","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any","page_number":594,"box":{"x":116,"y":699,"width":709,"height":13}},{"id":"7bcd3bbe-7eae-467f-a040-124f40ac7bf4","block_type":"box","text":"particular board composition in our engagements or voting but seek to understand how well placed a","page_number":594,"box":{"x":117,"y":715,"width":746,"height":12}},{"id":"507902f4-e9d5-47f3-b2a4-e36e57e59b5b","block_type":"box","text":"board is to act in investors’ interests. We may vote against the election of the most senior independent","page_number":594,"box":{"x":117,"y":730,"width":760,"height":13}},{"id":"efaface6-0b84-4509-adbc-c58d4d282e92","block_type":"box","text":"director, or the chair of the relevant committee, where a company has not demonstrated it has an","page_number":594,"box":{"x":116,"y":746,"width":720,"height":12}},{"id":"4cf08fed-2106-4343-93dd-579cc454be1d","block_type":"box","text":"appointment process that results in a high functioning board with the appropriate complement of skills","page_number":594,"box":{"x":116,"y":761,"width":753,"height":13}},{"id":"e80dcb2f-99da-4b94-8bd1-7f1c01ecfd34","block_type":"box","text":"and experience amongst the directors to support strong financial performance over time. We may vote","page_number":594,"box":{"x":116,"y":777,"width":759,"height":12}},{"id":"04748f92-6b8a-467b-8200-1b0cf89bdc3b","block_type":"box","text":"against newly nominated directors who do not seem to have the appropriate skills or experience to","page_number":594,"box":{"x":116,"y":793,"width":731,"height":12}},{"id":"d2586cd0-8885-439b-85cc-302291f0eced","block_type":"box","text":"contribute to the board’s effectiveness.","page_number":594,"box":{"x":116,"y":808,"width":286,"height":9}},{"id":"3c83db8b-d521-4db2-94c8-9df9b157d12c","block_type":"box","text":"6","page_number":594,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"7aafd17f-1b79-428e-bf22-012857928552","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance principles","page_number":594,"box":{"x":170,"y":867,"width":706,"height":9}},{"id":"a31cecba-43c2-45eb-993b-b726a6b1563b","block_type":"box","text":"of the US Business Roundtable as examples.","page_number":594,"box":{"x":170,"y":880,"width":268,"height":9}},{"id":"bf1995bc-95a5-4c6c-b01f-eb861ec6a480","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":594,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"9cbe1613-cde1-415c-ac44-a7be0625ac90","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":594,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"800d2b2f-99f4-4cd9-88fc-928ace752a7f","block_type":"box","text":"6","page_number":594,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"8fb0389d-22bb-4962-9edb-394a4e8e103a","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":594,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"8a62de94-fef0-4733-b284-bb10d7f76698","block_type":"box","text":"Independence","page_number":595,"box":{"x":116,"y":87,"width":118,"height":12}},{"id":"99c550b0-5cfe-48b1-97fc-52f1cd302ffa","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (e.g.,","page_number":595,"box":{"x":117,"y":118,"width":706,"height":12}},{"id":"ade75a0f-4793-45a5-a266-a7b2c7ee89e0","block_type":"box","text":"government or employees) is of paramount importance to the protection of the interests of minority","page_number":595,"box":{"x":116,"y":134,"width":736,"height":12}},{"id":"95d612da-b57c-492b-a9c6-c35502f2c04c","block_type":"box","text":"shareholders such as BlackRock’s clients. We consider it good practice for at least half the directors to","page_number":595,"box":{"x":116,"y":149,"width":766,"height":12}},{"id":"9c0b07ac-3b08-404d-b7e5-5c8578a25629","block_type":"box","text":"be independent and free from conflicts of interest or undue influence.","page_number":595,"box":{"x":117,"y":165,"width":510,"height":11}},{"id":"b94deac8-c220-42f7-aca0-7975acfe82d1","block_type":"box","text":"7","page_number":595,"box":{"x":629,"y":165,"width":5,"height":6}},{"id":"12774822-2839-42b1-9da1-1cfffc66a3be","block_type":"box","text":"This also helps to ensure that","page_number":595,"box":{"x":635,"y":165,"width":229,"height":11}},{"id":"0475fd73-a517-4e81-b975-1fbf720dbc6d","block_type":"box","text":"board committees are composed of a sufficient number of independent directors. Companies domiciled","page_number":595,"box":{"x":117,"y":180,"width":770,"height":12}},{"id":"903e6e5f-4188-4dcd-ba16-11b3e9eda517","block_type":"box","text":"in markets with a higher threshold for board independence should meet those local requirements.","page_number":595,"box":{"x":117,"y":196,"width":727,"height":12}},{"id":"1f164046-bcf8-4ed7-95ed-5c8c9b3e2f31","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient","page_number":595,"box":{"x":116,"y":227,"width":756,"height":12}},{"id":"90784cb0-3d9b-4f81-9da5-43335c9980c7","block_type":"box","text":"balance of independence. We may also vote against the election of the chair of the committee","page_number":595,"box":{"x":117,"y":242,"width":701,"height":12}},{"id":"9263a1be-e6c5-4f8c-9662-07dbf0ea8904","block_type":"box","text":"responsible for board composition if this is a perennial issue.","page_number":595,"box":{"x":117,"y":258,"width":453,"height":11}},{"id":"b879ded8-5a9a-48d8-9a16-a25873979ac5","block_type":"box","text":"Independent board leadership","page_number":595,"box":{"x":116,"y":289,"width":245,"height":11}},{"id":"5157cac2-8d99-4de8-8b3a-c71f2961fbf1","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to","page_number":595,"box":{"x":117,"y":320,"width":718,"height":12}},{"id":"17aae199-9c9c-45c3-a1e2-29af48850f77","block_type":"box","text":"independent board leadership. One is a non-executive, independent chair of the board who is","page_number":595,"box":{"x":117,"y":335,"width":697,"height":12}},{"id":"aab24ebe-93b4-43a8-993e-accfcb4b54bd","block_type":"box","text":"responsible for leading the board in the effective exercise of its duties. The other is a lead or senior","page_number":595,"box":{"x":117,"y":351,"width":738,"height":12}},{"id":"cb4460f7-b3a0-49d6-bcd8-064faa30e397","block_type":"box","text":"independent director, who is responsible for coordinating with the other non-executive directors and","page_number":595,"box":{"x":117,"y":366,"width":742,"height":12}},{"id":"61e03e3c-f125-4cd9-b401-fb94c1f81a8e","block_type":"box","text":"working closely with the executive chair on the board agenda and other board procedures. In this case,","page_number":595,"box":{"x":116,"y":382,"width":770,"height":12}},{"id":"1f6ab608-5b10-4de6-b676-7dc7325b18e1","block_type":"box","text":"the executive chair and the lead independent director work together to ensure the board is effectively","page_number":595,"box":{"x":116,"y":397,"width":754,"height":12}},{"id":"82c5514b-f64a-45fa-984b-4a8148504798","block_type":"box","text":"fulfilling its responsibilities. In our view, the independent leader of the board, and/or the chair of a","page_number":595,"box":{"x":116,"y":413,"width":723,"height":12}},{"id":"ad991cb9-326b-491e-94a1-cb0af3d89cbd","block_type":"box","text":"relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":595,"box":{"x":117,"y":428,"width":727,"height":12}},{"id":"91a65cbb-a14e-4369-9db3-67fc0bf8ea11","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board","page_number":595,"box":{"x":116,"y":444,"width":691,"height":12}},{"id":"57a98234-d980-48f9-b3cc-0803764b0e7f","block_type":"box","text":"leadership model and how it serves the interests of shareholders.","page_number":595,"box":{"x":117,"y":459,"width":489,"height":12}},{"id":"7a705a5f-e5e9-42a9-9f0a-f1eac2098f2d","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if","page_number":595,"box":{"x":116,"y":490,"width":740,"height":12}},{"id":"81d3860a-c0c7-4c74-9782-7bb5d6342c78","block_type":"box","text":"there is not an identified independent leader of the board with clear responsibilities for board","page_number":595,"box":{"x":116,"y":506,"width":689,"height":12}},{"id":"9a1bd37c-39b8-4ad7-bdd3-f66a3f737873","block_type":"box","text":"performance. We may vote against the most senior independent director if the board has a policy of","page_number":595,"box":{"x":117,"y":521,"width":744,"height":12}},{"id":"edffa0b0-3078-4654-a735-722dbf895cf7","block_type":"box","text":"not engaging with shareholders.","page_number":595,"box":{"x":117,"y":537,"width":242,"height":12}},{"id":"8d5521d3-6e87-435f-b5f4-f93adb94ec19","block_type":"box","text":"Tenure and succession","page_number":595,"box":{"x":118,"y":568,"width":189,"height":9}},{"id":"2d802581-3568-42a1-bf4d-bcc8eefe4b1b","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be","page_number":595,"box":{"x":117,"y":599,"width":745,"height":12}},{"id":"ee4df05f-7823-47c8-b318-3f60119ea192","block_type":"box","text":"expected to serve, in line with market norms where those exist. We find it helpful when companies","page_number":595,"box":{"x":116,"y":614,"width":733,"height":12}},{"id":"01b5544d-5e9a-45a0-a41c-84ce40af20ef","block_type":"box","text":"disclose their approach to director tenure particularly around the contributions of directors who have","page_number":595,"box":{"x":116,"y":630,"width":745,"height":12}},{"id":"35678ec0-c024-4e81-bf7f-a596abe30cc0","block_type":"box","text":"served for longer periods than typically provided for under local practice. In our experience, long","page_number":595,"box":{"x":116,"y":645,"width":718,"height":12}},{"id":"6c1c8a55-8859-4b92-a509-8a5e9616930c","block_type":"box","text":"serving directors could become less independent given their long-term relationship with management","page_number":595,"box":{"x":116,"y":661,"width":751,"height":12}},{"id":"a9fb4218-8c35-4c1b-aee8-643594d5ada4","block_type":"box","text":"and involvement in past board decisions.","page_number":595,"box":{"x":116,"y":676,"width":302,"height":12}},{"id":"58ad6154-8967-432d-97ce-0d120cc3aa6c","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances","page_number":595,"box":{"x":116,"y":707,"width":750,"height":12}},{"id":"e532a458-4899-41c8-83c5-c52d0b3628cc","block_type":"box","text":"renewal through the regular introduction of directors with fresh perspectives and expertise with","page_number":595,"box":{"x":117,"y":723,"width":699,"height":12}},{"id":"5f94ceb7-b092-4373-a738-017a711dc138","block_type":"box","text":"continuity through the retention of directors with long-term knowledge of the board and company.","page_number":595,"box":{"x":116,"y":738,"width":718,"height":12}},{"id":"cff4e936-f1cd-4ccb-b68e-1daaaf34cdeb","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate","page_number":595,"box":{"x":117,"y":769,"width":675,"height":12}},{"id":"9c46473f-cbc6-4ec6-9cd8-c9ea73862bc3","block_type":"box","text":"governance best practices, we may vote against the election of the chair of the committee responsible","page_number":595,"box":{"x":116,"y":785,"width":757,"height":12}},{"id":"c2666eac-5170-4533-9209-695a389731a8","block_type":"box","text":"for board composition if a company does not clearly disclose its approach to director tenure and board","page_number":595,"box":{"x":116,"y":800,"width":757,"height":12}},{"id":"08c93080-1c47-49a1-a5c6-804a3c751e05","block_type":"box","text":"7","page_number":595,"box":{"x":143,"y":828,"width":4,"height":5}},{"id":"115b3b45-c3d2-48a2-aca7-c5ca92f04410","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":595,"box":{"x":170,"y":828,"width":659,"height":10}},{"id":"711bf05e-a852-4034-983e-9163ca91d3f9","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":595,"box":{"x":170,"y":841,"width":659,"height":9}},{"id":"54c2e177-217a-4a3b-8d1c-a459ccd62294","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which could, or","page_number":595,"box":{"x":170,"y":854,"width":702,"height":9}},{"id":"ff93b2d0-55b4-4c4c-b8ed-a7623b6ff810","block_type":"box","text":"could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests of the company","page_number":595,"box":{"x":170,"y":867,"width":703,"height":9}},{"id":"47a7ad47-6673-4a20-8192-989539108251","block_type":"box","text":"and shareholders.","page_number":595,"box":{"x":170,"y":880,"width":106,"height":7}},{"id":"237d3b04-8a4a-491b-a579-81ff7c9975c3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":595,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"91175c87-45e4-4390-90ad-a6bd0016e7a0","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":595,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"51db6b58-409a-44ef-9c87-c2d311dd6511","block_type":"box","text":"7","page_number":595,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"03039228-99aa-41ce-a1d7-a7ce1b5eaf03","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":595,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"a55de14c-76b1-4c85-b6ca-9ad5d55aee01","block_type":"box","text":"renewal. We may vote against the election of directors who have served for more years than is typical","page_number":596,"box":{"x":117,"y":87,"width":760,"height":12}},{"id":"de231dad-6868-448c-975d-a40c5f1823b1","block_type":"box","text":"in markets with specific guidance, where the case for their continued service is not evident.","page_number":596,"box":{"x":117,"y":102,"width":679,"height":13}},{"id":"492312dd-f7cc-439e-a7a3-2dc02ab5840a","block_type":"box","text":"Capacity","page_number":596,"box":{"x":117,"y":134,"width":74,"height":12}},{"id":"f1235524-69ae-4754-90de-a25b9617e222","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our","page_number":596,"box":{"x":116,"y":165,"width":757,"height":12}},{"id":"a3d94175-dabf-4d78-88db-339fa4c33754","block_type":"box","text":"view, an effective board will assess the ability of its members to maintain an appropriate focus on","page_number":596,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"7d9d28ce-aacc-4be2-a3f4-67ae518b3a4b","block_type":"box","text":"board matters and the company taking into consideration competing responsibilities. We recognize that","page_number":596,"box":{"x":117,"y":196,"width":770,"height":12}},{"id":"e8d0a392-f9f7-46d1-920a-67d8fb953d09","block_type":"box","text":"board leadership roles vary across markets in responsibilities and required time commitment but note","page_number":596,"box":{"x":117,"y":211,"width":756,"height":12}},{"id":"d39e50f5-01c9-4000-a655-8f6728b2a52d","block_type":"box","text":"that they are generally more intensive than a standard directorship. We will take local norms and","page_number":596,"box":{"x":116,"y":227,"width":721,"height":12}},{"id":"543558c3-8b21-4edb-b7a4-1c5d10432bdd","block_type":"box","text":"practices into consideration when making our voting determinations across markets.","page_number":596,"box":{"x":117,"y":242,"width":628,"height":12}},{"id":"d1aab1e9-414f-4968-ae51-ddeafc907cc1","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively","page_number":596,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"b98a303a-4c8c-4afc-aa17-dc595f68aedb","block_type":"box","text":"fulfil their duties to the board and company.","page_number":596,"box":{"x":116,"y":289,"width":326,"height":12}},{"id":"df636bef-7bee-42cf-bdb8-ebdc06b2b609","block_type":"box","text":"Director elections","page_number":596,"box":{"x":116,"y":320,"width":147,"height":9}},{"id":"ae3bf216-6ec5-4a54-87e8-7107e01c9eef","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A","page_number":596,"box":{"x":117,"y":351,"width":720,"height":12}},{"id":"44b0ed26-d304-441d-b09a-1ed2c90d76bb","block_type":"box","text":"classified board structure","page_number":596,"box":{"x":116,"y":366,"width":186,"height":10}},{"id":"c78d8f15-eadf-475d-b7e2-3c10afe1b4ce","block_type":"box","text":"8","page_number":596,"box":{"x":303,"y":366,"width":5,"height":6}},{"id":"03f88336-deaf-488f-9d5e-a68675515f34","block_type":"box","text":"may be justified by a company when it needs consistency and stability","page_number":596,"box":{"x":309,"y":366,"width":530,"height":12}},{"id":"2cd72f06-9503-47f6-9596-015da3612a9b","block_type":"box","text":"during a time of transition, or on the basis of its business model (e.g., a non-operating company such","page_number":596,"box":{"x":116,"y":382,"width":754,"height":12}},{"id":"ea126358-63bc-4757-8fb6-4be67a833893","block_type":"box","text":"as closed-end funds).","page_number":596,"box":{"x":116,"y":397,"width":165,"height":12}},{"id":"831a7907-8411-4213-a1e8-eeebcd9b2db0","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in","page_number":596,"box":{"x":116,"y":428,"width":746,"height":12}},{"id":"c494559a-e86a-41bd-91b6-719c7a1c9973","block_type":"box","text":"bundled slates. We look to companies to provide sufficient information on each director standing for","page_number":596,"box":{"x":117,"y":444,"width":743,"height":12}},{"id":"6128efbd-1483-405a-bb74-b7beacc6846b","block_type":"box","text":"election so that shareholders can assess their capabilities and suitability. We will generally not support","page_number":596,"box":{"x":116,"y":459,"width":765,"height":12}},{"id":"7fb08fc4-f0b2-4d72-8e4b-074d06ca321e","block_type":"box","text":"the election of directors whose names and biographical details have not been disclosed sufficiently in","page_number":596,"box":{"x":116,"y":475,"width":755,"height":12}},{"id":"c54fa8f1-761c-4927-a543-48bfd82bcdf9","block_type":"box","text":"advance of the shareholder meeting.","page_number":596,"box":{"x":116,"y":490,"width":278,"height":12}},{"id":"09091ba1-c404-406b-8ef0-b5eeff147b7e","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at","page_number":596,"box":{"x":117,"y":521,"width":746,"height":12}},{"id":"b6ceed3d-3840-4877-bc6c-193159a8ba39","block_type":"box","text":"the shareholder meeting. Where a company’s practices differ, we look to the board to provide a","page_number":596,"box":{"x":116,"y":537,"width":712,"height":12}},{"id":"332ef1c5-cd23-4c36-9e0e-1f6151b0dbe4","block_type":"box","text":"detailed explanation as to how its approach best serves investors’ interests.","page_number":596,"box":{"x":116,"y":552,"width":567,"height":12}},{"id":"ecda5e71-1d05-4a09-9dfc-cb7ac8be911d","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of","page_number":596,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"0c104d80-4c07-454b-a411-579d05366653","block_type":"box","text":"directors and/or a simple majority vote standard for director elections. We may vote against all the","page_number":596,"box":{"x":116,"y":599,"width":732,"height":12}},{"id":"2bed3f51-4581-4b70-98f4-f5464614d8a4","block_type":"box","text":"directors standing for election as part of a single slate if we have concerns about the profile or","page_number":596,"box":{"x":116,"y":614,"width":701,"height":12}},{"id":"ebdaeafe-d0ed-44a5-b95e-c45126255b10","block_type":"box","text":"performance of an individual director.","page_number":596,"box":{"x":117,"y":630,"width":280,"height":12}},{"id":"aecab4ce-5c89-4430-98d0-74f486389672","block_type":"box","text":"Committees","page_number":596,"box":{"x":117,"y":661,"width":95,"height":9}},{"id":"6a03746d-6a94-49a2-ad52-7846d278b8f2","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and","page_number":596,"box":{"x":117,"y":692,"width":751,"height":12}},{"id":"362dd043-8921-4ee6-8eaf-654f0eaf1b03","block_type":"box","text":"risk, governance and human capital, and executive compensation, amongst other matters. We do not","page_number":596,"box":{"x":117,"y":707,"width":751,"height":12}},{"id":"5a63dbff-7922-435b-81a9-35f9c27b985f","block_type":"box","text":"prescribe to companies what committees they should establish, but we seek to understand the board’s","page_number":596,"box":{"x":117,"y":723,"width":760,"height":12}},{"id":"4359e36a-572f-4dbb-a8d6-f4670da7910b","block_type":"box","text":"rationale for the committee structure it determines is appropriate. We note that, in some markets,","page_number":596,"box":{"x":117,"y":738,"width":717,"height":12}},{"id":"5c3963d3-95a0-4caf-980f-65b699b897f5","block_type":"box","text":"regulation requires such committees. The responsibilities of each committee should be clear, and the","page_number":596,"box":{"x":117,"y":754,"width":748,"height":12}},{"id":"424d3f4e-17a8-4a3b-94a7-709a063f4b39","block_type":"box","text":"board should ensure that all critical matters are assigned either to the full board or to one of the","page_number":596,"box":{"x":117,"y":769,"width":706,"height":12}},{"id":"cce0b1e9-8c19-4d51-bbd9-66391cde7b55","block_type":"box","text":"committees. It is helpful to investor understanding when the board discloses the structure,","page_number":596,"box":{"x":116,"y":785,"width":665,"height":12}},{"id":"cc5096fc-9120-4e9c-9c13-112ee79c9f95","block_type":"box","text":"8","page_number":596,"box":{"x":143,"y":867,"width":4,"height":5}},{"id":"eed6d268-5dcb-4b7f-802a-c8b8e265a18f","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":596,"box":{"x":170,"y":867,"width":673,"height":9}},{"id":"d4b97c6b-4f0d-44f3-b9dd-6f1d698ad2ad","block_type":"box","text":"directors stands for election in any one year.","page_number":596,"box":{"x":170,"y":880,"width":262,"height":9}},{"id":"905126b1-12fd-4331-aac4-b2035222de1e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":596,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"234c6eb3-7613-4005-b71d-c23de5fa863f","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":596,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"33dc3c2d-7ced-4b69-8b70-7c041957034d","block_type":"box","text":"8","page_number":596,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"c1e3a73e-cf16-4dc7-aa84-ee5615b42783","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":596,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b2fbabdc-9394-49ef-bd7e-58aa9443eb10","block_type":"box","text":"membership, proportion of independent directors, and responsibilities of each committee. The","page_number":597,"box":{"x":117,"y":87,"width":700,"height":12}},{"id":"70132090-0d5e-48dc-abb8-1b12992bb36d","block_type":"box","text":"responsibilities we typically see assigned to the three most common committees include:","page_number":597,"box":{"x":117,"y":103,"width":662,"height":12}},{"id":"98f4f28c-a384-4881-8fe4-35f9a3584196","block_type":"box","text":"• Audit and risk – oversight responsibilities for the integrity of financial reporting, risk","page_number":597,"box":{"x":150,"y":134,"width":650,"height":12}},{"id":"2dc0f8e5-88bb-4106-881b-00d7e2fdb968","block_type":"box","text":"management and compliance with legal and regulatory requirements; may also play an","page_number":597,"box":{"x":184,"y":149,"width":650,"height":12}},{"id":"2a2c22a0-496b-4478-8319-65bcb15d4f81","block_type":"box","text":"oversight role in relation to the internal audit function and whistleblowing mechanisms.","page_number":597,"box":{"x":184,"y":165,"width":643,"height":12}},{"id":"c0da7a30-9567-4df1-b406-47d5ebc5ce23","block_type":"box","text":"• Nominating, governance and human capital – oversight responsibilities for corporate","page_number":597,"box":{"x":150,"y":188,"width":664,"height":12}},{"id":"1271f284-ee1d-4e87-b097-5e11b29efbee","block_type":"box","text":"governance principles and practices of the company, including the periodic review of board","page_number":597,"box":{"x":184,"y":203,"width":679,"height":12}},{"id":"98d6fa94-f9fc-49b7-b146-af77ba7075f2","block_type":"box","text":"performance; responsibility for succession planning for CEO and key board roles, as well as","page_number":597,"box":{"x":184,"y":219,"width":687,"height":12}},{"id":"926a702d-da47-4865-b839-c9ec10ad358c","block_type":"box","text":"the director appointment process; may also have oversight responsibilities for human capital","page_number":597,"box":{"x":183,"y":234,"width":690,"height":12}},{"id":"1965935d-6fa2-4c1f-952f-eb61251382f4","block_type":"box","text":"management strategies, including corporate culture and purpose.","page_number":597,"box":{"x":184,"y":250,"width":489,"height":12}},{"id":"c0c92c40-14fa-4674-9814-5db865bc5347","block_type":"box","text":"• Executive compensation – determines the compensation policies and programs for the CEO","page_number":597,"box":{"x":150,"y":273,"width":723,"height":12}},{"id":"48748ed6-74f6-4f82-b3d0-32c1b915591b","block_type":"box","text":"and other executive officers, approves annual awards and payments under the policies; may","page_number":597,"box":{"x":184,"y":289,"width":690,"height":12}},{"id":"21d49155-6421-4f4d-b314-988fa4251f1f","block_type":"box","text":"also have oversight responsibilities for firm-wide compensation policies.","page_number":597,"box":{"x":184,"y":304,"width":536,"height":12}},{"id":"d1a09481-c1d2-4150-ba6f-ad5d848d25a5","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee","page_number":597,"box":{"x":116,"y":335,"width":765,"height":12}},{"id":"438f8fac-db2e-4d37-b1cd-db883c3f1f24","block_type":"box","text":"members to convey concerns about how a committee has undertaken its responsibilities. We may vote","page_number":597,"box":{"x":117,"y":351,"width":767,"height":12}},{"id":"4431445c-afef-42ca-b0a3-adc2c4ed7290","block_type":"box","text":"against the election of the most senior non-executive director if there is not a clearly disclosed","page_number":597,"box":{"x":116,"y":366,"width":702,"height":12}},{"id":"1bbe57d8-3cc6-496c-92c9-fce7dff703c6","block_type":"box","text":"approach to board committees.","page_number":597,"box":{"x":116,"y":382,"width":236,"height":12}},{"id":"80cafddc-4308-4b02-b330-87456fca0c7a","block_type":"box","text":"Board and director evaluation","page_number":597,"box":{"x":116,"y":413,"width":243,"height":9}},{"id":"b9985511-cfae-45f9-8221-d2d002dd0db5","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the","page_number":597,"box":{"x":116,"y":444,"width":729,"height":12}},{"id":"cba9ff90-5966-4d1d-ac1d-55660c9e1300","block_type":"box","text":"board, the committees, the chair and individual directors. Periodically, this review could be undertaken","page_number":597,"box":{"x":117,"y":459,"width":762,"height":12}},{"id":"f302c845-b9cc-4c2c-93ad-f6baedb20da4","block_type":"box","text":"by an independent third party able to bring objective perspectives to the board on governance and","page_number":597,"box":{"x":117,"y":475,"width":732,"height":12}},{"id":"f3938329-aeda-47c0-ad77-3b2c86f41354","block_type":"box","text":"performance. We encourage companies to disclose their approach to and the objectives of","page_number":597,"box":{"x":117,"y":490,"width":677,"height":12}},{"id":"a6011150-a755-4d28-b84a-9f2565fe973b","block_type":"box","text":"evaluations, including any changes made to the board’s approach as a result.","page_number":597,"box":{"x":116,"y":506,"width":581,"height":12}},{"id":"b4821a21-c055-407d-b0dd-0ced06bf4fd3","block_type":"box","text":"Access to independent advice","page_number":597,"box":{"x":116,"y":537,"width":246,"height":12}},{"id":"56e5b472-8e63-4bbf-a89d-3c8e7f6a2343","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they","page_number":597,"box":{"x":116,"y":568,"width":723,"height":12}},{"id":"90efc43d-e4aa-45cb-a9d2-2e29a95209b1","block_type":"box","text":"should have access to independent advice. In certain circumstances, it may be helpful to boards to","page_number":597,"box":{"x":116,"y":583,"width":738,"height":12}},{"id":"67efb645-8a4d-40e7-a7b6-1f95c145e099","block_type":"box","text":"retain independent third parties to advise on critical matters. These might include new industry","page_number":597,"box":{"x":117,"y":599,"width":703,"height":12}},{"id":"e6ecc3ca-9cc3-415f-a440-aaa8938f216a","block_type":"box","text":"developments such as emergent and disruptive technology, operating events with material","page_number":597,"box":{"x":116,"y":614,"width":676,"height":12}},{"id":"52fa4f7d-0b6e-4cb0-a2ac-a1fcfe992dc3","block_type":"box","text":"consequences for the company’s reputation and/or performance, or significant transactions. Board","page_number":597,"box":{"x":116,"y":630,"width":735,"height":12}},{"id":"4d45c85c-b805-4511-8d07-714af768fbdd","block_type":"box","text":"committees may similarly retain third parties to advise them on specialist matters such as audit,","page_number":597,"box":{"x":116,"y":645,"width":713,"height":12}},{"id":"be955da8-2718-4035-ba40-c6f5afe28b24","block_type":"box","text":"compensation and succession planning.","page_number":597,"box":{"x":116,"y":661,"width":297,"height":12}},{"id":"47487346-8665-4b96-8c7c-3d1bf2d91079","block_type":"box","text":"Executive compensation","page_number":597,"box":{"x":402,"y":692,"width":195,"height":12}},{"id":"02be0efb-2139-43c9-a5fb-0ce2b0a26a85","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to","page_number":597,"box":{"x":117,"y":723,"width":755,"height":12}},{"id":"a3af648f-784d-4252-9653-f4842dcf0510","block_type":"box","text":"recruit, retain and reward the caliber of executive management necessary to lead and operate the","page_number":597,"box":{"x":117,"y":738,"width":724,"height":12}},{"id":"d21c7a8c-b2f5-450c-aab3-e3066b171c40","block_type":"box","text":"company to deliver superior financial returns over time. We focus on alignment between variable pay","page_number":597,"box":{"x":116,"y":754,"width":748,"height":12}},{"id":"7822d80d-8862-4141-a348-774f337f7b71","block_type":"box","text":"and a company’s financial performance.","page_number":597,"box":{"x":116,"y":769,"width":296,"height":12}},{"id":"f1e004a4-e0ad-4581-9f69-9dc33e3fb4ab","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus","page_number":597,"box":{"x":117,"y":800,"width":746,"height":12}},{"id":"aaa735e1-4f1a-4f49-83c8-c0e36c534bd6","block_type":"box","text":"that rewards performance against short-term metrics, incentives — most often share-based- that","page_number":597,"box":{"x":116,"y":816,"width":717,"height":12}},{"id":"dc651a81-a53e-45ec-a77d-996c0230150a","block_type":"box","text":"reward performance against long-term metrics, and pensions and benefits. In our observation, base","page_number":597,"box":{"x":117,"y":831,"width":744,"height":12}},{"id":"e907942f-9675-47ec-875e-1ee13e2eac6d","block_type":"box","text":"salary, pensions and benefits are largely set relative to market norms and benchmarks. The annual","page_number":597,"box":{"x":116,"y":847,"width":741,"height":12}},{"id":"655a1ebc-ac89-4805-9cec-f1834951bed1","block_type":"box","text":"bonus and share-based incentive, or variable pay plans, tend to be tailored to the company, its sector","page_number":597,"box":{"x":117,"y":862,"width":757,"height":12}},{"id":"0a115b1d-84ad-4b5d-a57c-cf9653016c59","block_type":"box","text":"and long-term strategy, as well as the individuals the board is seeking to recruit and motivate.","page_number":597,"box":{"x":116,"y":878,"width":699,"height":12}},{"id":"632fa5b8-cb35-424f-9cf4-e5b595926098","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":597,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"4f3bb844-d009-47cf-99ae-86026155fa5f","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":597,"box":{"x":543,"y":909,"width":325,"height":12}},{"id":"323cecb3-967c-468c-98a6-2eb2520c07a9","block_type":"box","text":"9","page_number":597,"box":{"x":875,"y":909,"width":8,"height":9}},{"id":"85d545cb-c1e3-476c-9bc3-7fbdf027ecd2","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":597,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"fbb61f29-35d4-4487-a17f-06c5450bd04d","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a","page_number":598,"box":{"x":117,"y":87,"width":693,"height":12}},{"id":"efe71f1e-31ec-489f-b281-789ea65b0ee4","block_type":"box","text":"company’s approach to executive compensation on a case-by-case basis. We rely on companies","page_number":598,"box":{"x":116,"y":103,"width":726,"height":12}},{"id":"c96cf878-f9a9-40b1-b30c-abe02a0016a9","block_type":"box","text":"providing sufficient quantitative and qualitative information in their disclosures to enable shareholders","page_number":598,"box":{"x":117,"y":118,"width":754,"height":12}},{"id":"a8c1bdac-a316-4406-a9fd-b5ab4208c893","block_type":"box","text":"to understand the compensation arrangements and assess the alignment with investors’ interests.","page_number":598,"box":{"x":116,"y":134,"width":732,"height":12}},{"id":"a52bb219-9159-4153-a62d-2fa4a2146263","block_type":"box","text":"Features we look for in compensation arrangements include:","page_number":598,"box":{"x":117,"y":149,"width":454,"height":12}},{"id":"1690315e-c21e-4705-b6db-e6d687c7a927","block_type":"box","text":"• Fixed pay components, including base salary, benefits and prerequisites that are appropriate","page_number":598,"box":{"x":150,"y":180,"width":727,"height":12}},{"id":"9623f4a3-7c68-440d-ae69-777ea53d51c3","block_type":"box","text":"in the context of the company’s size, sector and market.","page_number":598,"box":{"x":184,"y":196,"width":419,"height":12}},{"id":"eea7ffb9-1867-4e29-b5e1-1a93d1ba3314","block_type":"box","text":"• Variable pay subject to performance metrics that are closely linked to the company’s short","page_number":598,"box":{"x":150,"y":219,"width":707,"height":12}},{"id":"802daef5-7bcf-45a2-9518-e822e50650b8","block_type":"box","text":"and long-term strategic objectives.","page_number":598,"box":{"x":184,"y":234,"width":260,"height":12}},{"id":"5af6da35-7f54-4b25-b173-aa265d8bd6fc","block_type":"box","text":"• Long-term incentives that motivate sustained performance across a multi-year period.","page_number":598,"box":{"x":150,"y":258,"width":674,"height":12}},{"id":"54a694dc-4dfd-4945-ae09-50f393e4dd00","block_type":"box","text":"• A balance between fixed and variable pay, short- and long-term incentives, and specific","page_number":598,"box":{"x":150,"y":281,"width":688,"height":12}},{"id":"6c1e54d7-f59a-4d52-871e-d43a3004f1fc","block_type":"box","text":"instruments (cash and equity awards) that promotes pay program durability and seldom","page_number":598,"box":{"x":184,"y":296,"width":654,"height":12}},{"id":"be3a8338-eebf-4971-9953-392522827c03","block_type":"box","text":"necessitates one-off, discretionary payments.","page_number":598,"box":{"x":184,"y":312,"width":342,"height":12}},{"id":"33bb5b30-d55b-4181-aeb1-716bd8810695","block_type":"box","text":"• Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":598,"box":{"x":150,"y":335,"width":720,"height":12}},{"id":"35b179c7-413a-4bba-b39e-12409ce47e65","block_type":"box","text":"• Board discretion, if allowed within the variable pay arrangements, to be used sparingly,","page_number":598,"box":{"x":150,"y":358,"width":683,"height":12}},{"id":"21e2fb83-f411-4f2b-8adf-1be325449093","block_type":"box","text":"responsibly and transparently.","page_number":598,"box":{"x":184,"y":374,"width":228,"height":12}},{"id":"2c0b1de2-35ac-43c0-8938-9dcfb4451f7f","block_type":"box","text":"• A requirement, that participants in long-term share-based incentive plans build a meaningful","page_number":598,"box":{"x":150,"y":397,"width":721,"height":12}},{"id":"ecb9fb5b-d415-4d5c-8d5d-8c78f23f6644","block_type":"box","text":"shareholding in the company within a defined time period, as determined by the board or","page_number":598,"box":{"x":184,"y":413,"width":662,"height":12}},{"id":"268c9552-4c54-487e-91ba-ac8d758e6089","block_type":"box","text":"relevant board committee.","page_number":598,"box":{"x":184,"y":428,"width":198,"height":10}},{"id":"d1a6c17d-f18e-4b56-a74a-d267bc5b43ae","block_type":"box","text":"• Change of control provisions that appropriately balance the interests of executives and","page_number":598,"box":{"x":150,"y":451,"width":681,"height":12}},{"id":"e80f81ee-c005-492c-a4f6-2428b61d8b07","block_type":"box","text":"shareholders.","page_number":598,"box":{"x":184,"y":467,"width":106,"height":9}},{"id":"706c6e20-4782-433e-ad12-f67f7a367d04","block_type":"box","text":"• Clawback or malus provisions that allow the company to recoup or hold back variable","page_number":598,"box":{"x":150,"y":490,"width":672,"height":12}},{"id":"07c5aa4d-83a8-437c-b3a2-840e8d7c8c96","block_type":"box","text":"compensation from individuals whose awards were based on fraudulent activities, misstated","page_number":598,"box":{"x":184,"y":506,"width":687,"height":12}},{"id":"ccbf909d-7a35-4de1-b98d-70bc7e21f712","block_type":"box","text":"financial reports, or executive misconduct.","page_number":598,"box":{"x":183,"y":521,"width":318,"height":12}},{"id":"7d21dcee-7472-47d7-8685-3681e507ab0a","block_type":"box","text":"• Severance arrangements that protect the company’s interests but do not cost more than is","page_number":598,"box":{"x":150,"y":544,"width":710,"height":12}},{"id":"7c3f549b-949f-4e1b-85ca-9ffbc311c006","block_type":"box","text":"contractual.","page_number":598,"box":{"x":184,"y":560,"width":91,"height":9}},{"id":"c0f893f8-1382-44ee-b4eb-15510282973a","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or","page_number":598,"box":{"x":116,"y":591,"width":757,"height":12}},{"id":"63bcc738-5094-44e0-a7bc-248a14503d65","block_type":"box","text":"plans, or approve the compensation report where we do not see alignment between executive","page_number":598,"box":{"x":117,"y":607,"width":701,"height":11}},{"id":"eaac0b1b-dca8-41c0-938b-102b1ae89a89","block_type":"box","text":"compensation arrangements and our clients’ financial interests. When there is not an alternative, or","page_number":598,"box":{"x":116,"y":622,"width":742,"height":12}},{"id":"1becf0ff-77df-4f6e-ad27-d8f9617e5977","block_type":"box","text":"where there have been multi-year issues with compensation misaligned with performance, we may","page_number":598,"box":{"x":116,"y":637,"width":738,"height":12}},{"id":"47b48dce-34cc-4b88-912e-9bd2b4f2c815","block_type":"box","text":"vote against the election of the chair of the responsible committee, or the most senior independent","page_number":598,"box":{"x":116,"y":653,"width":735,"height":12}},{"id":"a0d51ae5-798c-477e-ab8b-2fe452f45f9c","block_type":"box","text":"director.","page_number":598,"box":{"x":116,"y":669,"width":59,"height":9}},{"id":"1a36dfea-78f1-4409-bd51-c60c1e459f96","block_type":"box","text":"Non-executive director compensation","page_number":598,"box":{"x":350,"y":700,"width":299,"height":11}},{"id":"a09887ee-129c-4b77-af99-f94592145c6d","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a","page_number":598,"box":{"x":117,"y":730,"width":706,"height":13}},{"id":"f5e7cf4b-8ecc-435a-9f14-2659a5667cf3","block_type":"box","text":"combination of the two. Some companies also pay additional fees for service on board committees or","page_number":598,"box":{"x":116,"y":746,"width":752,"height":12}},{"id":"0d0aea0a-2262-4629-89eb-d74130cfdb67","block_type":"box","text":"in board leadership roles. We do not support non-executive directors participating in performance","page_number":598,"box":{"x":117,"y":761,"width":726,"height":13}},{"id":"deb495f7-1134-403b-ac16-de0c57c243af","block_type":"box","text":"based incentive plans as doing so may create a conflict of interest and undermine their independence","page_number":598,"box":{"x":117,"y":777,"width":753,"height":12}},{"id":"d20ef661-7a12-4323-b90c-21e39a6a5106","block_type":"box","text":"from management, whom they oversee.","page_number":598,"box":{"x":116,"y":792,"width":295,"height":13}},{"id":"eb60167d-44be-46d7-bf19-8ad3a06f884b","block_type":"box","text":"Capital structure","page_number":598,"box":{"x":433,"y":823,"width":133,"height":12}},{"id":"b2adea4b-72d8-4cee-8e4f-812a1be808d9","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that","page_number":598,"box":{"x":117,"y":854,"width":765,"height":13}},{"id":"e9b14e26-547b-4b9f-a48b-ab4c92da4014","block_type":"box","text":"achieves appropriate capital allocation in support of long-term financial resilience.","page_number":598,"box":{"x":116,"y":870,"width":610,"height":12}},{"id":"dfda5943-1b9c-4774-baee-4867e2ca73b9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":598,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"0bab4d3c-5dc6-4c78-8510-ab9ba9d18f3b","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":598,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"bc1c40d1-0fa1-40f4-8a2b-7826e0448b86","block_type":"box","text":"10","page_number":598,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"36acd89b-d84f-4f36-b8d1-cbd1ab9b1712","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":598,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"92d0880a-44dd-4c15-9ca5-6bff10245506","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why","page_number":599,"box":{"x":116,"y":87,"width":743,"height":12}},{"id":"616d3857-2299-4972-8e5e-a812c6177807","block_type":"box","text":"they view these practices to be aligned with shareholders’ interests. We may vote against management","page_number":599,"box":{"x":116,"y":103,"width":772,"height":12}},{"id":"29a1f34b-1d39-4d82-ab61-e2f52aa13c08","block_type":"box","text":"proposals seeking capital-related authorities, or the election of the most senior independent director, if","page_number":599,"box":{"x":117,"y":118,"width":761,"height":12}},{"id":"e7d69f78-bc67-4dc7-a0de-ab3f8a90726c","block_type":"box","text":"we have concerns about a company’s approach. We may also support a shareholder proposal seeking","page_number":599,"box":{"x":116,"y":134,"width":768,"height":12}},{"id":"a48fb327-11e9-4566-8ca5-4033fab992ee","block_type":"box","text":"conversion of shares with differentiated voting rights to a one-share, one-vote standard.","page_number":599,"box":{"x":116,"y":149,"width":655,"height":12}},{"id":"da74233e-fd23-481f-aa0e-3f0eff05ba0b","block_type":"box","text":"Share","page_number":599,"box":{"x":116,"y":180,"width":46,"height":10}},{"id":"961a28b2-87fd-4ffb-884b-8b76de526ebd","block_type":"box","text":"issuance","page_number":599,"box":{"x":168,"y":180,"width":76,"height":10}},{"id":"edd75911-479d-4404-afd7-549931318896","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will","page_number":599,"box":{"x":116,"y":211,"width":741,"height":12}},{"id":"04434f6b-a7af-4914-9d5e-e1c5a3c75344","block_type":"box","text":"generally support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent","page_number":599,"box":{"x":116,"y":227,"width":768,"height":12}},{"id":"e6f0897b-50ac-4c67-b3cd-eb6e7e0c1f20","block_type":"box","text":"pre-emptive rights. We consider it good practice for companies to seek regular approval of these","page_number":599,"box":{"x":117,"y":242,"width":720,"height":12}},{"id":"f2841783-c305-41f6-b080-e76ce7b602de","block_type":"box","text":"authorities to allow shareholders to take into consideration how prior authorities were used, as well as","page_number":599,"box":{"x":116,"y":258,"width":759,"height":11}},{"id":"b11bda8d-174d-469e-8bdd-c5dc6abc2508","block_type":"box","text":"the current circumstances of the company and the market environment.","page_number":599,"box":{"x":116,"y":273,"width":536,"height":12}},{"id":"c78eab6a-f2f9-4d83-84a7-04751d44e64e","block_type":"box","text":"Share buybacks","page_number":599,"box":{"x":116,"y":304,"width":133,"height":12}},{"id":"5ebaad55-dc66-4530-a053-120dba2411d6","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management","page_number":599,"box":{"x":116,"y":335,"width":746,"height":12}},{"id":"918603b3-b637-48e8-887c-ab5e4d6aafc2","block_type":"box","text":"strategy and management’s determination of the appropriate balance between investment that","page_number":599,"box":{"x":116,"y":351,"width":706,"height":12}},{"id":"1da790f1-f74d-4e18-b70f-16077a3f8f1a","block_type":"box","text":"supports the long-term growth of the company and returning cash to investors. We also take into","page_number":599,"box":{"x":116,"y":366,"width":721,"height":12}},{"id":"9cb953a0-f948-467e-b912-15941f7765dd","block_type":"box","text":"consideration the effect of a buyback program on the company’s balance sheet and executive","page_number":599,"box":{"x":116,"y":382,"width":701,"height":12}},{"id":"14dd0994-0f50-463e-b596-5715269928c9","block_type":"box","text":"compensation arrangements and the price at which shares are repurchased relative to market price.","page_number":599,"box":{"x":116,"y":397,"width":748,"height":12}},{"id":"4dd94c0f-baf8-438a-8b43-e9ee08440ee4","block_type":"box","text":"We consider it good practice for companies to seek regular approval of these authorities to allow","page_number":599,"box":{"x":116,"y":413,"width":721,"height":12}},{"id":"4c41d55e-ec50-44ce-a3c9-20b4a52cfaab","block_type":"box","text":"shareholders to take into consideration how prior authorities were used, as well as the current","page_number":599,"box":{"x":116,"y":428,"width":700,"height":12}},{"id":"99faef26-6d1f-498d-bd30-4e73402af6de","block_type":"box","text":"circumstances of the company and the market environment.","page_number":599,"box":{"x":116,"y":444,"width":451,"height":12}},{"id":"2ab4dfd4-f1e8-4cad-a3ae-f8e893bf96dc","block_type":"box","text":"Dividends","page_number":599,"box":{"x":117,"y":475,"width":84,"height":9}},{"id":"56ca792a-bd1d-4ba2-a76a-fff55f946ea0","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further","page_number":599,"box":{"x":116,"y":506,"width":752,"height":12}},{"id":"b4d99e97-2fce-417a-8504-1693e8267b61","block_type":"box","text":"clarification where a proposed dividend appears out of line with the company’s financial position.","page_number":599,"box":{"x":116,"y":521,"width":720,"height":12}},{"id":"9337c8d5-80dd-46ff-af1a-d95de2eb6010","block_type":"box","text":"Differentiated voting rights","page_number":599,"box":{"x":117,"y":552,"width":219,"height":12}},{"id":"c691a321-02f3-4460-a0e7-efa383ef5eca","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same","page_number":599,"box":{"x":116,"y":583,"width":710,"height":12}},{"id":"f8681fcd-0399-4be9-b0c7-ba994907b59f","block_type":"box","text":"economic exposure. Certain companies, particularly those new to public markets, could make the case","page_number":599,"box":{"x":116,"y":599,"width":768,"height":12}},{"id":"25cda6f6-cfd2-4c78-90b5-3e58dd82adab","block_type":"box","text":"to adopt a differentiated voting rights structure, or dual class stock. In those situations, we encourage","page_number":599,"box":{"x":116,"y":614,"width":755,"height":12}},{"id":"c4bf25a8-fc43-41e9-ace5-225713707695","block_type":"box","text":"companies to evaluate and seek approval for their capital structure on a periodic basis.","page_number":599,"box":{"x":116,"y":630,"width":650,"height":12}},{"id":"90212cfa-398c-4590-9621-42f4a5cf8db7","block_type":"box","text":"Transactions and special situations","page_number":599,"box":{"x":357,"y":661,"width":285,"height":12}},{"id":"0e7ba0f9-231d-40c3-9fff-a85971fe6ee8","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own","page_number":599,"box":{"x":116,"y":692,"width":706,"height":12}},{"id":"295124e7-04cf-40b1-9aaf-958a7fb72399","block_type":"box","text":"detailed analyses of proposals.","page_number":599,"box":{"x":116,"y":707,"width":229,"height":12}},{"id":"9a57d42d-fc4f-4eaa-9135-d69d4588ba79","block_type":"box","text":"Mergers and acquisitions","page_number":599,"box":{"x":117,"y":738,"width":201,"height":12}},{"id":"97bdc5d8-733e-4408-b58b-470aaba34060","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as","page_number":599,"box":{"x":116,"y":769,"width":740,"height":12}},{"id":"e4a3873f-10b1-4cdc-81b6-0a35e5473dbd","block_type":"box","text":"minority shareholders. Management should provide an assessment of the proposed transaction’s","page_number":599,"box":{"x":117,"y":785,"width":719,"height":12}},{"id":"15e29a14-d7ab-475e-bdf1-73694ea390e6","block_type":"box","text":"strategic and financial rationale, along with its execution and operational risks. We review each","page_number":599,"box":{"x":116,"y":800,"width":703,"height":12}},{"id":"4e77c24e-954f-46f2-9817-a7caf59301cd","block_type":"box","text":"transaction independently based on these factors and the degree to which the transaction enhances","page_number":599,"box":{"x":116,"y":816,"width":743,"height":12}},{"id":"382de813-493c-4da6-b9d0-adb4b4e45bc8","block_type":"box","text":"shareholder value. The board might consider establishing an ad hoc transaction committee to","page_number":599,"box":{"x":116,"y":831,"width":699,"height":12}},{"id":"c4668a86-93ad-4455-a591-3041d98260af","block_type":"box","text":"undertake an independent assessment of a significant merger or acquisition, in advance of making its","page_number":599,"box":{"x":117,"y":847,"width":757,"height":12}},{"id":"666b7f2b-1e91-4955-b108-94adc5c3daf2","block_type":"box","text":"recommendation to shareholders.","page_number":599,"box":{"x":117,"y":862,"width":254,"height":10}},{"id":"034db89f-1dd4-4e36-90cb-5d08ccde3a9b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":599,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"57e35885-3b5f-4310-80a7-29689d54c2b0","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":599,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"1f31e817-fca0-48aa-9b8e-f9beb2e4c0a8","block_type":"box","text":"11","page_number":599,"box":{"x":866,"y":909,"width":15,"height":9}},{"id":"49c17b03-4449-4de4-8597-e52dfcfcc853","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":599,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"5a644a29-0fcf-44fd-858a-6b512f0c8703","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial","page_number":600,"box":{"x":116,"y":87,"width":703,"height":12}},{"id":"9089a7d7-f473-43f0-aba1-e1de0ad375ee","block_type":"box","text":"interests.","page_number":600,"box":{"x":117,"y":103,"width":72,"height":9}},{"id":"96f411f2-6fc0-4651-9ffd-a51d22b98167","block_type":"box","text":"Anti-takeover defenses","page_number":600,"box":{"x":116,"y":134,"width":190,"height":9}},{"id":"abd4bf95-8ce1-4787-914e-9d72ca0b66e9","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":600,"box":{"x":117,"y":165,"width":757,"height":12}},{"id":"8e113383-d081-450a-9f1e-74dba4971efb","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered","page_number":600,"box":{"x":116,"y":180,"width":731,"height":12}},{"id":"25029904-f7bf-4c70-8c39-7862c6c0fa73","block_type":"box","text":"long-term shareholder value. By exception, a poison pill may be supported if its purpose is to delay a","page_number":600,"box":{"x":117,"y":196,"width":751,"height":12}},{"id":"f5a081b8-e2d9-49d5-a5ea-4c19bd454588","block_type":"box","text":"takeover that is considered sub-optimal and enable management to seek an improved offer. Similarly,","page_number":600,"box":{"x":116,"y":211,"width":761,"height":12}},{"id":"cc22e017-1fef-4390-83fa-0b12afb04d85","block_type":"box","text":"management could make the case to use a poison pill to block a shareholder activism campaign that","page_number":600,"box":{"x":117,"y":227,"width":751,"height":12}},{"id":"bdc45231-a199-4578-b405-5b240d0e0670","block_type":"box","text":"may be counter to the interests of other investors. Defense mechanisms introduced in these","page_number":600,"box":{"x":117,"y":242,"width":687,"height":12}},{"id":"f257f0c4-057f-4b93-bc8f-a769e969e21c","block_type":"box","text":"circumstances should be limited in term and threshold, and also be closely monitored by the","page_number":600,"box":{"x":116,"y":258,"width":688,"height":12}},{"id":"0a8c3513-393c-4059-9017-3f03fd7779f1","block_type":"box","text":"independent members of the board. We consider it good practice for companies to put to a shareholder","page_number":600,"box":{"x":117,"y":273,"width":771,"height":12}},{"id":"30735fbe-86e0-42d1-b2d3-235ad3320b0a","block_type":"box","text":"vote any mechanisms expected to be in place for more than 12 months.","page_number":600,"box":{"x":116,"y":289,"width":538,"height":12}},{"id":"bfb21f53-541a-4aba-9250-5c7229aa1103","block_type":"box","text":"Shareholder activism","page_number":600,"box":{"x":116,"y":320,"width":175,"height":9}},{"id":"f2b5fcef-6941-4e6b-87aa-02820bee0c1a","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to","page_number":600,"box":{"x":116,"y":351,"width":732,"height":12}},{"id":"9f741240-e5d5-4506-ac95-1810a96c0dfb","block_type":"box","text":"understand their analysis and objectives, once they have publicly disclosed their campaign. We may","page_number":600,"box":{"x":117,"y":366,"width":748,"height":12}},{"id":"92a4e619-c70f-49a4-9097-b2393e1f6245","block_type":"box","text":"also engage with company management and possibly board members, especially those the activist","page_number":600,"box":{"x":116,"y":382,"width":741,"height":12}},{"id":"bfe625a4-3241-42db-b140-bf35f7590c0d","block_type":"box","text":"may be seeking to replace. In our assessment, we evaluate various factors, including the concerns","page_number":600,"box":{"x":117,"y":397,"width":737,"height":12}},{"id":"2c3f82bf-ad51-4b77-af7d-3d43ef8a0267","block_type":"box","text":"raised by the activist and the case for change; the quality of both the activist’s and management’s","page_number":600,"box":{"x":117,"y":413,"width":728,"height":12}},{"id":"3e382718-1b8d-49af-8c42-dd87f188e4c3","block_type":"box","text":"plans; and the qualifications of each party’s candidates. We evaluate each contested situation by","page_number":600,"box":{"x":117,"y":428,"width":723,"height":12}},{"id":"004c5963-f05d-4878-b9f3-052770d2a96b","block_type":"box","text":"assessing the potential financial outcome for our clients as minority shareholders.","page_number":600,"box":{"x":116,"y":444,"width":610,"height":12}},{"id":"0ffc841e-c4ed-46dd-92c6-db0b0b9133a5","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent","page_number":600,"box":{"x":116,"y":475,"width":728,"height":12}},{"id":"a711b78e-80ec-4341-b4c8-0afc32501ad2","block_type":"box","text":"judgment, or the relevant portfolio manager has determined that there is a case for change to enhance","page_number":600,"box":{"x":115,"y":490,"width":767,"height":12}},{"id":"9bbf3197-2e4f-4d54-8d93-11dc6188ffcb","block_type":"box","text":"shareholder value, or if the incumbent board members do not demonstrate the relevant skills and","page_number":600,"box":{"x":116,"y":506,"width":725,"height":11}},{"id":"fdb7833c-c34c-4d6d-8d9c-38563e6b40db","block_type":"box","text":"expertise or have a poor track record of protecting shareholders’ interests.","page_number":600,"box":{"x":116,"y":521,"width":556,"height":12}},{"id":"0198e117-2dfa-4fe2-a02d-e29c6e06e24c","block_type":"box","text":"Significant shareholders and related party transactions","page_number":600,"box":{"x":116,"y":552,"width":446,"height":12}},{"id":"9171cdf8-ec63-4831-b875-08cbcbd8d082","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":600,"box":{"x":117,"y":583,"width":768,"height":12}},{"id":"3766dae1-b7fe-47df-a504-db4f6c86828d","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":600,"box":{"x":117,"y":599,"width":534,"height":12}},{"id":"3068e320-db1f-458f-8006-0c21f4f64412","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or","page_number":600,"box":{"x":116,"y":630,"width":751,"height":12}},{"id":"1690b148-5272-4fee-8a2c-a9bff056699c","block_type":"box","text":"companies affiliated with the public company, to be disclosed in detail and conducted on terms similar","page_number":600,"box":{"x":116,"y":645,"width":760,"height":12}},{"id":"6929ea86-8812-44db-89c6-81271eb66936","block_type":"box","text":"to what would objectively have been agreed with a non-related party. In our view, such transactions","page_number":600,"box":{"x":116,"y":661,"width":737,"height":12}},{"id":"95058619-6e3d-42a2-ad6a-28b6dfcde25b","block_type":"box","text":"should be reviewed and approved by the independent members of the board, and if voted on, only","page_number":600,"box":{"x":116,"y":676,"width":729,"height":12}},{"id":"cb493b0b-6c78-4ad5-b699-3623ec3fa2e9","block_type":"box","text":"disinterested shareholders should vote.","page_number":600,"box":{"x":116,"y":692,"width":291,"height":9}},{"id":"54c09e51-58d9-4c70-b12b-8c79af746e31","block_type":"box","text":"Corporate reporting, risk management and audit","page_number":600,"box":{"x":307,"y":723,"width":385,"height":12}},{"id":"30d30577-5d13-46e7-992e-165f2c8c922b","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s","page_number":600,"box":{"x":117,"y":754,"width":737,"height":12}},{"id":"42cf2918-c863-4d4a-8ffc-8a6ee4342869","block_type":"box","text":"strategy, its implementation and financial performance, as well as to assess the quality of management","page_number":600,"box":{"x":116,"y":769,"width":765,"height":12}},{"id":"2e7b27fa-a0ff-498d-b5e5-6456978033cd","block_type":"box","text":"and operations and potential for the company to create shareholder value over time. We consider it","page_number":600,"box":{"x":116,"y":785,"width":736,"height":12}},{"id":"dc6460d9-af39-44c3-bba7-58db7a0378cf","block_type":"box","text":"good practice for the board to oversee corporate reporting and the policies and procedures","page_number":600,"box":{"x":116,"y":800,"width":674,"height":12}},{"id":"0162c672-a7f6-4260-9bc1-fb3eff063957","block_type":"box","text":"underpinning the internal audit function and external audit.","page_number":600,"box":{"x":117,"y":816,"width":430,"height":12}},{"id":"8ee9f910-9978-4a80-b38d-298c3b74c31f","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other","page_number":600,"box":{"x":116,"y":847,"width":734,"height":12}},{"id":"56ec3cb8-29b5-46da-aaf0-43687755c320","block_type":"box","text":"stakeholders, on its financial performance and position. It should provide an accurate and balanced","page_number":600,"box":{"x":116,"y":862,"width":742,"height":12}},{"id":"55365d6a-62f6-4a14-9ee1-0bc885b59d7e","block_type":"box","text":"assessment of the risks and opportunities the company faces in realizing its long-term strategy.","page_number":600,"box":{"x":116,"y":878,"width":712,"height":12}},{"id":"039a7f00-4697-4775-baa3-1682cbbea32a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":600,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"0b336142-da8f-46a1-a96e-e1b6538b4ca8","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":600,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"33c4ff93-a73e-4b6e-884a-124ae9ff01d8","block_type":"box","text":"12","page_number":600,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"2101a92c-2d6a-45b1-b6dc-402782555683","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":600,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"17cfbb5c-9832-4aa8-ae5a-8938f0413ca5","block_type":"box","text":"Accordingly, the assumptions made by management and reviewed by the auditor in preparing the","page_number":601,"box":{"x":116,"y":87,"width":729,"height":12}},{"id":"ca42fd56-1043-4eb8-bc9a-ce46cf7249ff","block_type":"box","text":"financial statements should be reasonable and justified. Financial statements should be prepared in","page_number":601,"box":{"x":116,"y":102,"width":744,"height":13}},{"id":"7cf60fb7-81c5-4cd5-8a3b-b6a749402c62","block_type":"box","text":"accordance with globally developed reporting standards and any divergence from generally accepted","page_number":601,"box":{"x":116,"y":118,"width":755,"height":12}},{"id":"4de1428b-6a99-4778-850a-018f9bfbfca2","block_type":"box","text":"accounting principles should be explained in detail and justified. Accounting restatements should be","page_number":601,"box":{"x":116,"y":134,"width":745,"height":12}},{"id":"e4a0ed3d-41f5-49a0-b031-7ea7f4fa29a9","block_type":"box","text":"explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":601,"box":{"x":116,"y":149,"width":638,"height":12}},{"id":"a2370cce-7482-4581-9088-da957bd79072","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":601,"box":{"x":117,"y":180,"width":769,"height":12}},{"id":"3d18859b-dcb1-4d3f-9af3-218884ab04c6","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction,","page_number":601,"box":{"x":117,"y":196,"width":737,"height":12}},{"id":"26ab758d-52c6-4904-8dff-c1954c7a1f51","block_type":"box","text":"non-financial information, internal control frameworks and Enterprise Risk Management systems. In","page_number":601,"box":{"x":117,"y":211,"width":743,"height":12}},{"id":"f31187bf-937c-4eba-9560-b50177ed2ca9","block_type":"box","text":"our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":601,"box":{"x":116,"y":227,"width":730,"height":12}},{"id":"5b9e9d96-bbf1-4397-babc-f77672fb3eaa","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders. Audit committees","page_number":601,"box":{"x":116,"y":242,"width":767,"height":12}},{"id":"4541142b-35ea-434b-b54e-94b0a82bf317","block_type":"box","text":"should have a procedure in place for assessing the independence of the auditor and the quality of the","page_number":601,"box":{"x":116,"y":258,"width":758,"height":12}},{"id":"a5124ae7-cce8-4df9-bdf2-b97faa0c8279","block_type":"box","text":"external audit process annually.","page_number":601,"box":{"x":116,"y":273,"width":241,"height":12}},{"id":"7f7b2c78-0963-4360-a5a5-277c7ee81529","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to","page_number":601,"box":{"x":116,"y":304,"width":771,"height":12}},{"id":"e15e73e0-bc67-4a9a-a233-db9d3bae437c","block_type":"box","text":"how a company manages risks or generates revenue. BAIS finds it helpful to our understanding when","page_number":601,"box":{"x":117,"y":320,"width":758,"height":12}},{"id":"5143e493-03fb-4d47-995d-83a3257256e6","block_type":"box","text":"companies provide robust, standardized disclosures on their material sustainability-related risks and","page_number":601,"box":{"x":116,"y":335,"width":747,"height":12}},{"id":"11088a5e-42ea-4465-8ad8-2ce5b4b31173","block_type":"box","text":"opportunities. The International Sustainability Standards Board (ISSB) is one entity working to meet","page_number":601,"box":{"x":116,"y":351,"width":743,"height":12}},{"id":"8bbec961-4f19-4b9f-8404-70c046071832","block_type":"box","text":"these objectives through its reporting standards, which may be helpful to companies in preparing such","page_number":601,"box":{"x":116,"y":366,"width":763,"height":12}},{"id":"91d8ea83-f23a-4abe-b937-94653a18b595","block_type":"box","text":"reports.","page_number":601,"box":{"x":117,"y":382,"width":54,"height":12}},{"id":"9886e9a1-6eda-42b8-a839-b49ab784f1db","block_type":"box","text":"9","page_number":601,"box":{"x":173,"y":382,"width":5,"height":6}},{"id":"dfaa0a3f-9b20-4097-9972-6597677ac0e7","block_type":"box","text":"However, we do not mandate any specific disclosure framework, and note that companies in","page_number":601,"box":{"x":179,"y":382,"width":696,"height":12}},{"id":"f90ec35f-4bab-47f4-9e00-690911980537","block_type":"box","text":"certain jurisdictions are subject to mandatory reporting requirements under standards specified by","page_number":601,"box":{"x":116,"y":397,"width":731,"height":12}},{"id":"e65bbe5f-ce20-4c31-996d-cf6a753c190b","block_type":"box","text":"policy makers.","page_number":601,"box":{"x":117,"y":413,"width":105,"height":12}},{"id":"58f6a738-a41f-4a97-9aac-b6622301edb6","block_type":"box","text":"10","page_number":601,"box":{"x":224,"y":413,"width":11,"height":6}},{"id":"3221e034-35d0-4054-bb5e-5271691bf9f3","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":601,"box":{"x":117,"y":444,"width":765,"height":12}},{"id":"46aa0bfe-1ac5-4f95-8f91-f26c130ddb48","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for","page_number":601,"box":{"x":116,"y":459,"width":759,"height":12}},{"id":"0f3045c7-aec5-4851-b589-bfba6454f29b","block_type":"box","text":"employees, and potentially other stakeholders, can be a useful mechanism for ensuring that senior","page_number":601,"box":{"x":116,"y":475,"width":738,"height":12}},{"id":"b6d954cf-1831-4489-a13a-c543d4ea333d","block_type":"box","text":"management and the board are aware of potential misconduct or breaches in risk management and","page_number":601,"box":{"x":117,"y":490,"width":745,"height":12}},{"id":"89e96a44-625c-4d1c-a68e-bc4ad866098c","block_type":"box","text":"internal control processes.","page_number":601,"box":{"x":117,"y":506,"width":200,"height":12}},{"id":"b5827187-970e-4bed-8e5b-e3775803ac8f","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in","page_number":601,"box":{"x":116,"y":537,"width":748,"height":12}},{"id":"5f4ebc6c-6130-4807-875b-fe1118690142","block_type":"box","text":"the quality of corporate reporting. It is helpful when the audit report gives some insight into the scope","page_number":601,"box":{"x":116,"y":552,"width":752,"height":12}},{"id":"bbb278af-4824-4aac-9f47-b3518ccc5d7b","block_type":"box","text":"and focus of the audit, as well as any critical audit matters identified and how these were resolved. A","page_number":601,"box":{"x":116,"y":568,"width":751,"height":12}},{"id":"41df6561-db8e-40de-9dc3-b9155baf5b5c","block_type":"box","text":"comprehensive and effective audit is time and resource intensive, and the audit fee should be","page_number":601,"box":{"x":116,"y":583,"width":700,"height":12}},{"id":"075fd075-6c5f-4277-b4aa-e4e17de7e78e","block_type":"box","text":"commensurate. Fees paid to the audit firm for non-audit consulting should not exceed the audit fee to a","page_number":601,"box":{"x":116,"y":599,"width":771,"height":12}},{"id":"1eea8338-63a6-4360-8ea3-51fd65951c2d","block_type":"box","text":"degree that may prompt concerns about the independence of the audit. The audit committee should","page_number":601,"box":{"x":116,"y":614,"width":746,"height":12}},{"id":"3868683a-a329-4c93-bbbf-05922b074eb9","block_type":"box","text":"explain its position on auditor tenure and how it confirmed that the auditor remained independent.","page_number":601,"box":{"x":116,"y":630,"width":728,"height":12}},{"id":"5502df58-4b06-49c5-a4e7-b9603c66d1a4","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or","page_number":601,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"f6ccd724-0f00-4b87-9822-34f517c51cbb","block_type":"box","text":"there are material misstatements in financial reports. In markets where relevant, we may vote against a","page_number":601,"box":{"x":116,"y":676,"width":766,"height":12}},{"id":"a6599810-7347-47c0-8870-6477f023d56d","block_type":"box","text":"proposal to approve the financial statements or the discharge of the board when we are concerned","page_number":601,"box":{"x":117,"y":692,"width":731,"height":12}},{"id":"180f313f-2bcd-423f-af42-b014d6d917dc","block_type":"box","text":"about the quality of corporate reporting or the audit. We may vote against proposals to appoint the","page_number":601,"box":{"x":116,"y":707,"width":728,"height":12}},{"id":"981d8324-78d4-43de-b0a9-f63825c522f6","block_type":"box","text":"auditor, ratify the audit report, or approve the audit fee if we are concerned about the auditor’s","page_number":601,"box":{"x":116,"y":723,"width":697,"height":12}},{"id":"5c33a38e-2f0e-4c5b-9469-20af5617311d","block_type":"box","text":"independence, the quality of the audit, or there are material misstatements in financial reports and the","page_number":601,"box":{"x":117,"y":738,"width":754,"height":12}},{"id":"389ad91a-7320-4010-a0a1-c10c609a5048","block_type":"box","text":"board has not established reasonable remediation plans.","page_number":601,"box":{"x":117,"y":754,"width":420,"height":12}},{"id":"7edbb219-90d3-461d-8c92-b08c6f5ec9b1","block_type":"box","text":"9","page_number":601,"box":{"x":143,"y":815,"width":4,"height":5}},{"id":"7f628492-5ea0-43ba-abcc-27c3efc09234","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards (IFRS)","page_number":601,"box":{"x":170,"y":815,"width":666,"height":10}},{"id":"a39580fd-6dc7-461a-9d2f-f9a5f7ece46b","block_type":"box","text":"Foundation. Please refer to the IFRS website to learn more about the framework and standards S1 “General","page_number":601,"box":{"x":171,"y":828,"width":641,"height":8}},{"id":"cfa132ea-1a54-4664-ada4-2bbe78aaf113","block_type":"box","text":"Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related Disclosures.”","page_number":601,"box":{"x":171,"y":841,"width":672,"height":9}},{"id":"6f682fc2-5662-48b2-bae0-e02d9476aa11","block_type":"box","text":"10","page_number":601,"box":{"x":144,"y":854,"width":8,"height":5}},{"id":"6fcd337d-b88a-482c-baee-d72069963b7f","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional-profiles","page_number":601,"box":{"x":170,"y":854,"width":705,"height":9}},{"id":"08bbac5c-e16d-4497-9968-317255739bbe","block_type":"box","text":"issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company","page_number":601,"box":{"x":170,"y":867,"width":615,"height":9}},{"id":"63d2f7da-e4c3-49f8-85c2-34ebcd1be449","block_type":"box","text":"reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en","page_number":601,"box":{"x":170,"y":880,"width":468,"height":9}},{"id":"d8bffb25-f1ff-4518-b03c-6681f9fee316","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":601,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"08c2b631-d8e4-46db-8960-7abde7966367","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":601,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"dbb06976-0069-4760-b003-de5a7af40cc2","block_type":"box","text":"13","page_number":601,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"7b35e233-0e4c-4fdd-82b9-9e28e1df53d1","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":601,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"bb2ee169-9b4d-49e2-b855-d466ddca4c76","block_type":"box","text":"Shareholder rights and protections","page_number":602,"box":{"x":360,"y":87,"width":285,"height":12}},{"id":"f5a4f125-792b-47e9-ba1a-9e5d8f3ab6dd","block_type":"box","text":"General shareholder meetings","page_number":602,"box":{"x":116,"y":118,"width":247,"height":12}},{"id":"ddfa597b-1653-4d49-8434-be4d7da68606","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine","page_number":602,"box":{"x":117,"y":149,"width":768,"height":12}},{"id":"34234330-d6ae-4bbc-828c-20c5ae797895","block_type":"box","text":"items of business are discussed and voted on by shareholders in attendance or submitting proxy votes.","page_number":602,"box":{"x":117,"y":165,"width":771,"height":12}},{"id":"bf6102fd-8f7e-4745-a728-6eb8b0b0b4c2","block_type":"box","text":"Companies should disclose materials relevant to the shareholder meeting sufficiently in advance so","page_number":602,"box":{"x":117,"y":180,"width":742,"height":12}},{"id":"b2261f5e-25fa-44e9-8717-a4776812a361","block_type":"box","text":"that shareholders can take them into consideration in their voting decisions. Many companies offer","page_number":602,"box":{"x":116,"y":196,"width":736,"height":12}},{"id":"4a3967c8-279a-4e75-916f-f3683e0483fd","block_type":"box","text":"shareholders the option of participating in the meeting virtually which, whilst welcome, should not limit","page_number":602,"box":{"x":116,"y":211,"width":758,"height":12}},{"id":"b143ca32-14c2-4c88-b3b8-03a54c03c4a5","block_type":"box","text":"the rights of shareholders to participate as they would during an in-person meeting.","page_number":602,"box":{"x":116,"y":227,"width":622,"height":12}},{"id":"8e715899-21de-45a4-93b6-f325bce50bda","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are","page_number":602,"box":{"x":116,"y":258,"width":757,"height":12}},{"id":"a29dea45-53e7-4899-9662-958a2bef4624","block_type":"box","text":"not provided in a timely manner or do not provide sufficient information for us to make an informed","page_number":602,"box":{"x":117,"y":273,"width":733,"height":12}},{"id":"499690f3-1186-4daf-bcb8-2d70c593326d","block_type":"box","text":"voting decision. We may vote against directors if the format of the shareholder meeting does not","page_number":602,"box":{"x":116,"y":289,"width":719,"height":12}},{"id":"a1bf1ace-52ea-4b16-aa8e-c9c0d6f72519","block_type":"box","text":"accommodate reasonable shareholder participation.","page_number":602,"box":{"x":116,"y":304,"width":392,"height":12}},{"id":"309ecdf6-e0ef-4bae-9ee9-d7a5f7e39b33","block_type":"box","text":"Bylaw amendments","page_number":602,"box":{"x":117,"y":335,"width":161,"height":12}},{"id":"a6dae064-a9d5-4a40-a198-bbd093876fa6","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally","page_number":602,"box":{"x":116,"y":366,"width":753,"height":12}},{"id":"a739e90b-0415-43b0-8b07-b252e215f193","block_type":"box","text":"support those that are aligned with the interests of minority shareholders. Any material changes to the","page_number":602,"box":{"x":116,"y":382,"width":761,"height":12}},{"id":"1c674d3a-6a21-45f3-b7ed-385342b20bef","block_type":"box","text":"bylaws should be explained in detail and put to a shareholder vote.","page_number":602,"box":{"x":117,"y":397,"width":500,"height":12}},{"id":"e970446d-a9aa-411b-85ed-2558151c8e36","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce","page_number":602,"box":{"x":116,"y":428,"width":753,"height":12}},{"id":"e025e102-4b87-46c6-b8c9-704fbcde6d4a","block_type":"box","text":"additional burdens. We may vote against directors if material changes are made to the bylaws without","page_number":602,"box":{"x":116,"y":444,"width":760,"height":12}},{"id":"201f2e03-ebe6-4c89-b0bd-98ecc077f70d","block_type":"box","text":"shareholder approval.","page_number":602,"box":{"x":116,"y":459,"width":167,"height":12}},{"id":"3dceaa82-c979-4db0-8917-551400963e5c","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":602,"box":{"x":117,"y":490,"width":688,"height":12}},{"id":"ca6063d6-8ea0-4690-9c05-3fe2f95d1f93","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to call a special meeting of","page_number":602,"box":{"x":117,"y":506,"width":704,"height":12}},{"id":"55752381-6702-4ac5-93eb-9dea68ac0635","block_type":"box","text":"shareholders. The shareholding required to exercise this right should balance its utility with the cost to","page_number":602,"box":{"x":116,"y":521,"width":761,"height":12}},{"id":"8ebc0bd8-ebd3-4f70-8e4c-9b1339ca820f","block_type":"box","text":"the company of holding special meetings.","page_number":602,"box":{"x":116,"y":537,"width":313,"height":12}},{"id":"50f38ff7-7255-4d3a-b880-578a449bd40c","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders,","page_number":602,"box":{"x":117,"y":568,"width":688,"height":12}},{"id":"91d97ab8-b7e2-4e89-9865-583226703551","block_type":"box","text":"individually or as a group, with a meaningful shareholding, the right to nominate directors to the","page_number":602,"box":{"x":117,"y":583,"width":710,"height":12}},{"id":"0943924d-823d-4a7e-a682-59b391f6df3c","block_type":"box","text":"company’s board. The threshold for this right should be set so that shareholders can exercise it without","page_number":602,"box":{"x":116,"y":599,"width":770,"height":12}},{"id":"b630a5b4-cfcf-4ea7-9e7b-2c8079111a02","block_type":"box","text":"being unduly disruptive to the board’s own nomination process.","page_number":602,"box":{"x":117,"y":614,"width":473,"height":12}},{"id":"a024c05a-0d01-4121-b01e-b49eaff6793e","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability","page_number":602,"box":{"x":116,"y":645,"width":728,"height":12}},{"id":"90a60406-c8e6-4210-af69-bd8f411c9e79","block_type":"box","text":"mechanisms. We may vote for a shareholder proposal seeking the addition of either of these","page_number":602,"box":{"x":117,"y":661,"width":686,"height":12}},{"id":"36b1e340-d48f-4234-9040-919313043848","block_type":"box","text":"provisions to a company’s bylaws.","page_number":602,"box":{"x":117,"y":676,"width":252,"height":12}},{"id":"68c346ee-bc28-41bd-bb6a-045d3abaaf22","block_type":"box","text":"Change of domicile","page_number":602,"box":{"x":116,"y":707,"width":154,"height":12}},{"id":"ea448673-041c-43d6-8fec-4f4f16645ad8","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the","page_number":602,"box":{"x":116,"y":738,"width":717,"height":12}},{"id":"b5b05db0-aea2-495d-9bf2-43f19746347d","block_type":"box","text":"rationale for doing so is consistent with the company’s long-term strategy and business model and the","page_number":602,"box":{"x":117,"y":754,"width":756,"height":12}},{"id":"070ccce0-c184-42f2-b00d-f69ba04c9e2f","block_type":"box","text":"related costs are immaterial.","page_number":602,"box":{"x":117,"y":769,"width":209,"height":10}},{"id":"b60884d0-7c50-4c4a-8859-330d099e6089","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem","page_number":602,"box":{"x":116,"y":800,"width":751,"height":12}},{"id":"2deca37a-3c62-4aa8-90fb-ef8c9f2a630e","block_type":"box","text":"aligned with our clients’ financial interests.","page_number":602,"box":{"x":116,"y":816,"width":311,"height":12}},{"id":"4253bbb4-1b05-4e89-abce-ebb09c0039f6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":602,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"857704d2-3d37-40b8-a67c-b7406d574aad","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":602,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"ad0cea55-c7ec-4adf-90f5-2103f56ef45e","block_type":"box","text":"14","page_number":602,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"99f5999c-3ae9-4f9f-88ef-ccf04606ea55","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":602,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9453ec3a-8d11-4e79-89e4-a5a982c8fe02","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":603,"box":{"x":116,"y":87,"width":504,"height":12}},{"id":"9467fd04-d3d0-4a3a-bcbe-c773fbdec925","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and","page_number":603,"box":{"x":117,"y":118,"width":762,"height":12}},{"id":"05b686bc-e703-468d-b0ce-b21c6103f781","block_type":"box","text":"explained in the context of long-term strategy and business dynamics. Such changes may significantly","page_number":603,"box":{"x":116,"y":134,"width":764,"height":12}},{"id":"44e1e341-d938-406f-88e6-9d384546f348","block_type":"box","text":"alter an investor’s views on the suitability of a company for their investment strategy or portfolio.","page_number":603,"box":{"x":116,"y":149,"width":716,"height":12}},{"id":"48b59f66-2548-45dc-8ec8-7ff1cb2e8f29","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its","page_number":603,"box":{"x":116,"y":180,"width":743,"height":12}},{"id":"a3dfb4f1-ebf3-4893-b971-32ab868ad20d","block_type":"box","text":"business if the board has not provided a credible argument for change.","page_number":603,"box":{"x":117,"y":196,"width":530,"height":12}},{"id":"bac46309-bc8c-472f-b369-3ded0272d6fa","block_type":"box","text":"Shareholder proposals","page_number":603,"box":{"x":409,"y":227,"width":187,"height":11}},{"id":"eaf2dc3b-271a-40db-a533-32d36c7274cb","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals","page_number":603,"box":{"x":116,"y":258,"width":756,"height":12}},{"id":"7acc1160-37be-4b5e-b936-9215be5307c7","block_type":"box","text":"to the general shareholder meeting asking a company to take a particular course of action subject to","page_number":603,"box":{"x":116,"y":273,"width":749,"height":12}},{"id":"0947a87d-56fe-4d14-8cfc-593509618722","block_type":"box","text":"the proposal being supported by a majority of votes cast at the meeting. The topics raised can address","page_number":603,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"d2a5a74b-d147-45ce-a406-e3676720a87c","block_type":"box","text":"a range of matters that may be relevant to a company’s business.","page_number":603,"box":{"x":116,"y":304,"width":492,"height":12}},{"id":"e9843896-c1b7-4555-af95-2b49364b5e58","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":603,"box":{"x":116,"y":335,"width":767,"height":12}},{"id":"192b987b-caa9-4092-821b-03e7e1953b44","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with","page_number":603,"box":{"x":116,"y":351,"width":697,"height":12}},{"id":"6f377511-327c-44e8-b3a5-c9fc61b0d268","block_type":"box","text":"shareholders’ interests, and what impact the proposal being acted upon might have on financial","page_number":603,"box":{"x":116,"y":366,"width":714,"height":12}},{"id":"968e8e7c-2892-4c4e-9e8d-ec1918f15340","block_type":"box","text":"performance.","page_number":603,"box":{"x":117,"y":382,"width":103,"height":12}},{"id":"15467b9d-ce8c-442e-a666-23be16a0d62c","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or","page_number":603,"box":{"x":116,"y":413,"width":711,"height":12}},{"id":"108cfab4-1803-4d33-8744-7ad9d251115d","block_type":"box","text":"performance is to engage to understand the apparent difference in perspective. If we are concerned a","page_number":603,"box":{"x":117,"y":428,"width":760,"height":12}},{"id":"2d0b2a59-78de-4946-8842-0aafa2f5f975","block_type":"box","text":"company is not acting in shareholders’ financial interests, we may vote against the election of directors.","page_number":603,"box":{"x":116,"y":444,"width":772,"height":12}},{"id":"e8557900-5ef1-493d-b210-4121b489431b","block_type":"box","text":"We may support a relevant shareholder proposal if doing so is aligned with our clients’ financial","page_number":603,"box":{"x":116,"y":459,"width":712,"height":12}},{"id":"6fc36411-9118-42ab-ac14-3daf9a8fe773","block_type":"box","text":"interests. We generally do not support shareholder proposals that are legally binding on the company,","page_number":603,"box":{"x":117,"y":475,"width":760,"height":12}},{"id":"a69e0fbd-2bd2-4ffa-9e2e-322bc88a950f","block_type":"box","text":"seek to alter a company’s strategy or direct its operations, or are unrelated to how a company","page_number":603,"box":{"x":116,"y":490,"width":700,"height":12}},{"id":"94d9d09f-cbbf-40a3-a5fb-1ab3d552c6d6","block_type":"box","text":"manages risk or generates financial returns.","page_number":603,"box":{"x":117,"y":506,"width":331,"height":12}},{"id":"662b443a-2ea1-4a2c-9b1c-0b544bb7ee1a","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place","page_number":603,"box":{"x":117,"y":537,"width":737,"height":12}},{"id":"020d7e26-d2bb-4929-8542-e9f7ced3e13c","block_type":"box","text":"restrictions and limitations on how we can interact with the companies in which we invest on behalf of","page_number":603,"box":{"x":117,"y":552,"width":755,"height":12}},{"id":"db7096b6-3601-422b-9abe-b22fc9912d40","block_type":"box","text":"our clients, including our ability to submit shareholder proposals. We do not submit shareholder","page_number":603,"box":{"x":116,"y":568,"width":712,"height":12}},{"id":"d247553a-894c-4239-ba51-f230bc67f0d9","block_type":"box","text":"proposals but can vote, on behalf of clients who authorize us to do so, on proposals put forth by others.","page_number":603,"box":{"x":117,"y":583,"width":770,"height":12}},{"id":"cefe0910-0f9d-4e75-ab5d-660dde077695","block_type":"box","text":"Corporate political activities","page_number":603,"box":{"x":387,"y":614,"width":230,"height":12}},{"id":"d73af276-4444-4a30-8885-0653f7df9b52","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the","page_number":603,"box":{"x":116,"y":645,"width":733,"height":12}},{"id":"78e7bee7-5a11-41f5-bb94-98fca5ac363d","block_type":"box","text":"jurisdictions in which they engage. When a corporation reports material financial risk related to policy","page_number":603,"box":{"x":115,"y":661,"width":749,"height":12}},{"id":"1f1ef519-cf99-4ada-912f-d5ee19fdc81b","block_type":"box","text":"and or regulatory changes, BAIS may seek to understand how it is addressing the material risk","page_number":603,"box":{"x":116,"y":676,"width":703,"height":12}},{"id":"2b8e7e38-8fca-4119-8c53-9ac5ea806b90","block_type":"box","text":"identified. We seek to understand how companies engage in corporate political activities and ensure","page_number":603,"box":{"x":117,"y":692,"width":743,"height":12}},{"id":"24b7fc40-caad-48c9-aedf-7499ffcfdfd3","block_type":"box","text":"that their participation is consistent with their public statements on policy matters material to the","page_number":603,"box":{"x":116,"y":707,"width":709,"height":12}},{"id":"2fdc5549-7ba5-4fbe-8268-e0fa1072e3fa","block_type":"box","text":"company’s long-term strategy. The board should be aware of the approach taken by management on","page_number":603,"box":{"x":116,"y":723,"width":750,"height":12}},{"id":"06bc6d5e-beb3-4a34-96ec-2867c77846e3","block_type":"box","text":"corporate political activities as there can be reputational risks arising from inconsistencies between a","page_number":603,"box":{"x":116,"y":738,"width":746,"height":12}},{"id":"6ba546fd-9ea2-4558-b11a-6c7a9aa5d601","block_type":"box","text":"company’s policy engagement and stated policy positions. Companies should, as a minimum, meet all","page_number":603,"box":{"x":116,"y":754,"width":758,"height":12}},{"id":"ef0fd14b-a9d4-4ba6-b576-7ddf2f349562","block_type":"box","text":"regulatory disclosure requirements on political activities. We may engage a company where we would","page_number":603,"box":{"x":117,"y":769,"width":753,"height":12}},{"id":"b0c208ed-093d-4838-a897-3d6eb622ec6f","block_type":"box","text":"like to better understand its approach to policy engagement, where relevant.","page_number":603,"box":{"x":117,"y":785,"width":563,"height":12}},{"id":"6f805eda-133f-4174-a591-5e3030ff7c80","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their","page_number":603,"box":{"x":116,"y":816,"width":732,"height":12}},{"id":"5c63700a-5ca9-44a3-9a61-2700254f73f1","block_type":"box","text":"policy priorities and the policy positions of the trade associations of which they are active members and","page_number":603,"box":{"x":117,"y":831,"width":770,"height":12}},{"id":"00169857-fc0d-4816-9190-35f2122c028d","block_type":"box","text":"any engagements undertaken by trade associations on behalf of members.","page_number":603,"box":{"x":116,"y":847,"width":562,"height":12}},{"id":"fc5ab1e1-9d00-43bf-897b-ef4d3f15c795","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":603,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"511cc6c0-4c73-4dbe-b4ee-7978b19744ae","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":603,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"72583a2f-f5bf-46c6-a9f2-17e529183e98","block_type":"box","text":"15","page_number":603,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"604a42cc-c051-4408-ba35-1ebd4a9fcff5","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":603,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"e0ad1b64-2b4c-43a4-b6ec-e3f308d62870","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s","page_number":604,"box":{"x":116,"y":87,"width":712,"height":12}},{"id":"2524c5cf-80bd-4f86-816e-a08b640e3cd0","block_type":"box","text":"disclosures are insufficient to address the material risk it has identified.","page_number":604,"box":{"x":116,"y":102,"width":530,"height":10}},{"id":"43e2923e-09cf-4b33-b010-cf569015ba94","block_type":"box","text":"Material sustainability-related risks and opportunities","page_number":604,"box":{"x":287,"y":134,"width":431,"height":12}},{"id":"9ea23585-9c6d-4ac1-b551-2128e03b58de","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their","page_number":604,"box":{"x":116,"y":165,"width":751,"height":12}},{"id":"90b35c6a-c941-4d40-bc9b-25978b4bc7d2","block_type":"box","text":"business operations. In our experience, sustainability-related factors","page_number":604,"box":{"x":117,"y":180,"width":505,"height":12}},{"id":"9cb76326-0d6f-43d0-bee7-184f816416cb","block_type":"box","text":"11","page_number":604,"box":{"x":624,"y":180,"width":9,"height":6}},{"id":"df66656c-1e13-40b2-af9e-9a00c05e6b33","block_type":"box","text":"that are relevant to a company’s","page_number":604,"box":{"x":635,"y":180,"width":249,"height":12}},{"id":"c1785c92-45ef-4df6-af88-dbb324efee54","block_type":"box","text":"business or material to its financial performance, are generally operational considerations embedded","page_number":604,"box":{"x":117,"y":196,"width":752,"height":12}},{"id":"2670428e-cd3d-4ffe-967a-6b1e2e1ba317","block_type":"box","text":"into day-to-day management systems. Certain sustainability issues may also inform long-term strategic","page_number":604,"box":{"x":117,"y":211,"width":769,"height":12}},{"id":"63e6450e-72de-4ce6-bef7-959dc9d31897","block_type":"box","text":"planning, for example, investing in product innovation in anticipation of changing consumer demand or","page_number":604,"box":{"x":117,"y":227,"width":763,"height":12}},{"id":"ff790a16-7f44-465a-9034-cdb2e86ae27b","block_type":"box","text":"adapting supply chains in response to changing regulatory requirements.","page_number":604,"box":{"x":116,"y":242,"width":546,"height":12}},{"id":"c98b0689-a1db-436d-83d3-97a7a9ab2d91","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business","page_number":604,"box":{"x":116,"y":273,"width":769,"height":12}},{"id":"ae40d35f-7fab-412a-aca6-bf2bcea775d6","block_type":"box","text":"relevant will vary by company business model, sector, key markets, and time horizon, amongst other","page_number":604,"box":{"x":117,"y":289,"width":751,"height":12}},{"id":"e5385d11-1f76-48b7-af2f-d48a5f24f608","block_type":"box","text":"considerations. From company disclosures and our engagement, we aim to understand how","page_number":604,"box":{"x":116,"y":304,"width":689,"height":12}},{"id":"79487a1e-5c2e-4dfe-8522-00d75ae076ef","block_type":"box","text":"management is identifying, assessing and integrating material sustainability-related risks and","page_number":604,"box":{"x":117,"y":320,"width":694,"height":12}},{"id":"c4fafbf6-6ce2-4274-9322-10b617a535e1","block_type":"box","text":"opportunities into their business decision-making and practices. Doing so helps us undertake a more","page_number":604,"box":{"x":116,"y":335,"width":752,"height":12}},{"id":"d98a274b-32ad-487b-81ef-f5625c0f5766","block_type":"box","text":"holistic assessment of a company’s potential financial performance and the likely risk-adjusted returns","page_number":604,"box":{"x":117,"y":351,"width":761,"height":12}},{"id":"cd7ba9ff-6f6e-4ccc-b69b-ee5638188cc5","block_type":"box","text":"of an investment.","page_number":604,"box":{"x":116,"y":366,"width":133,"height":10}},{"id":"c1643057-f8e4-4fd0-a778-9ec10015f232","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about","page_number":604,"box":{"x":116,"y":397,"width":753,"height":12}},{"id":"ee18ecd0-edaa-42c4-a9fd-7740ec8ebd1b","block_type":"box","text":"how a company is managing or disclosing its approach to material sustainability-related risks that may","page_number":604,"box":{"x":117,"y":413,"width":761,"height":12}},{"id":"45f64615-b484-4a1c-b76f-7c5bd998fefb","block_type":"box","text":"impact financial returns.","page_number":604,"box":{"x":117,"y":428,"width":181,"height":12}},{"id":"8daa07bf-0293-4378-8c4d-08552b0c3a57","block_type":"box","text":"Key stakeholders","page_number":604,"box":{"x":431,"y":459,"width":143,"height":12}},{"id":"28a6d6ca-527e-4094-8137-3647db4987b4","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various","page_number":604,"box":{"x":117,"y":490,"width":727,"height":12}},{"id":"2d51b27e-8d16-4d97-9f45-9082ea73a0d1","block_type":"box","text":"parties on whom they depend for their success over time. It is for each company to determine their key","page_number":604,"box":{"x":117,"y":506,"width":766,"height":12}},{"id":"da55a01b-4947-4597-a9e4-f1678198a5eb","block_type":"box","text":"stakeholders based on what is material to their business and long-term financial performance. For","page_number":604,"box":{"x":116,"y":521,"width":731,"height":12}},{"id":"fa465672-c124-41f8-8e35-bf1f85f56f52","block_type":"box","text":"many companies, key stakeholders include employees, business partners (such as suppliers and","page_number":604,"box":{"x":117,"y":537,"width":726,"height":12}},{"id":"bad70d6b-ee19-4481-8015-150c40766f04","block_type":"box","text":"distributors), clients and consumers, regulators, and the communities in which they operate.","page_number":604,"box":{"x":116,"y":552,"width":687,"height":12}},{"id":"5019a5e7-e315-4ab1-9a2e-956cadcd40b4","block_type":"box","text":"Companies that appropriately balance the interests of investors and other stakeholders are, in our","page_number":604,"box":{"x":117,"y":568,"width":730,"height":12}},{"id":"8198d452-fe07-47a8-a7d8-d5a717627efb","block_type":"box","text":"experience, more likely to be financially resilient over time.","page_number":604,"box":{"x":116,"y":583,"width":438,"height":12}},{"id":"2334270a-e52d-47a2-9f24-deff85750ae8","block_type":"box","text":"Climate and decarbonization investment objectives","page_number":604,"box":{"x":295,"y":614,"width":414,"height":12}},{"id":"3c7deafe-c220-4079-b6dd-b57d780f019f","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial","page_number":604,"box":{"x":117,"y":645,"width":737,"height":12}},{"id":"91c5f715-e8e0-495a-b45d-a707168f4158","block_type":"box","text":"objectives. Consistent with the objectives of those investment strategies, our stewardship activity in","page_number":604,"box":{"x":116,"y":661,"width":735,"height":12}},{"id":"65d2f637-70be-41bf-b171-91965bae9317","block_type":"box","text":"relation to the holdings in those funds differs in some respects from BAIS’ benchmark guidelines, which","page_number":604,"box":{"x":117,"y":676,"width":765,"height":12}},{"id":"7ba0d987-b537-4f7d-9e62-235a9ac947b3","block_type":"box","text":"are described above. Specifically, for those funds’ holdings, we look to investee companies to","page_number":604,"box":{"x":116,"y":692,"width":694,"height":12}},{"id":"ff48580c-81e5-4a1c-b27f-18ebdd0c71e8","block_type":"box","text":"demonstrate that they are aligned with a decarbonization pathway that means their business model","page_number":604,"box":{"x":116,"y":707,"width":736,"height":12}},{"id":"9eac2a5b-86f3-437c-9291-cf8fdae028e0","block_type":"box","text":"would be viable in a low-carbon economy, i.e., one in which global temperature rise is limited to 1.5°C","page_number":604,"box":{"x":116,"y":723,"width":754,"height":12}},{"id":"c2581653-42dd-4071-a695-979a3c45b3bd","block_type":"box","text":"11","page_number":604,"box":{"x":144,"y":776,"width":7,"height":5}},{"id":"48a05397-21e4-4be1-8258-55c42204007f","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a","page_number":604,"box":{"x":171,"y":776,"width":691,"height":10}},{"id":"282cfa89-2c70-4405-bcd9-3ad5e65f149c","block_type":"box","text":"company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":604,"box":{"x":170,"y":789,"width":686,"height":10}},{"id":"19e7cebf-a7c5-4090-b45d-796f2838f38f","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":604,"box":{"x":170,"y":802,"width":682,"height":10}},{"id":"b5d3a987-b126-4768-b970-a4f40b825abd","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":604,"box":{"x":170,"y":815,"width":683,"height":10}},{"id":"55ec684d-14f7-4859-b32e-b38aeb5ef6a8","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will effectively","page_number":604,"box":{"x":170,"y":828,"width":708,"height":10}},{"id":"5c2ccb4f-ad57-42af-8300-bec991e55e98","block_type":"box","text":"evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is","page_number":604,"box":{"x":170,"y":841,"width":707,"height":9}},{"id":"72627ade-8e7f-4394-bb00-2165e0280099","block_type":"box","text":"the core means by which boards can oversee the creation of durable financial value over time. Appropriate risk","page_number":604,"box":{"x":170,"y":854,"width":658,"height":9}},{"id":"932a4924-a796-4cc1-b83b-c1394a586c9b","block_type":"box","text":"oversight of business-relevant and material sustainability-related considerations is a component of a sound governance","page_number":604,"box":{"x":170,"y":867,"width":708,"height":9}},{"id":"c5c9d1a1-d661-4229-b3f0-3f3843621c94","block_type":"box","text":"framework.","page_number":604,"box":{"x":170,"y":880,"width":65,"height":7}},{"id":"b6cdd4d1-afdf-4ea5-b5cd-e8252983fefc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":604,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"d1c0884a-d248-4d4c-b4cf-92541ec0f061","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":604,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"6e20995a-cbf2-4999-a734-ad5ef75e3ff9","block_type":"box","text":"16","page_number":604,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"171c16e2-d990-456c-a3b3-e7ea62a3f4dc","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":604,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"4ce0e138-4cf0-4756-8f14-14186ed25333","block_type":"box","text":"above pre-industrial levels. In addition, clients in separately managed accounts may instruct BlackRock","page_number":605,"box":{"x":116,"y":87,"width":771,"height":12}},{"id":"97bf1373-e2ca-4a8f-abba-3beb0cb9e23a","block_type":"box","text":"to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":605,"box":{"x":116,"y":102,"width":698,"height":13}},{"id":"37b11142-86fe-4806-b373-d4224e4e5fe5","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable","page_number":605,"box":{"x":116,"y":118,"width":770,"height":12}},{"id":"86a2d2d4-29ad-4d5e-bd98-f754b4d36282","block_type":"box","text":"fund board or client.","page_number":605,"box":{"x":116,"y":134,"width":153,"height":9}},{"id":"a3a46b3c-7731-492d-a4aa-3cfd75368f89","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services","page_number":605,"box":{"x":116,"y":165,"width":766,"height":12}},{"id":"a0404cf8-9542-4c7b-9940-13702adee867","block_type":"box","text":"that contribute to real world decarbonization or have a carbon intensive business model and face","page_number":605,"box":{"x":116,"y":180,"width":724,"height":10}},{"id":"7009d8e9-5c0a-46fb-bb2d-a58384a3fb7a","block_type":"box","text":"outsized impacts from the low carbon transition, based on reported and estimated scopes 1, 2, and 3","page_number":605,"box":{"x":116,"y":196,"width":754,"height":11}},{"id":"6aaf9a35-72c9-4e28-a13e-3702f6d2837c","block_type":"box","text":"greenhouse gas emissions. These companies should provide disclosures that set out their","page_number":605,"box":{"x":116,"y":211,"width":675,"height":12}},{"id":"f9a81a38-f64e-42ab-896d-8aa9dea41e62","block_type":"box","text":"governance, strategy, risk management processes and metrics and targets relevant to","page_number":605,"box":{"x":116,"y":227,"width":646,"height":12}},{"id":"525eaac9-daae-4d26-ae27-2f2031a3631d","block_type":"box","text":"decarbonization. It is helpful to investors’ understanding when these disclosures include an explanation","page_number":605,"box":{"x":116,"y":242,"width":770,"height":12}},{"id":"96aa6e4e-e1db-40af-8d9d-dd62aca6f968","block_type":"box","text":"of the decarbonization scenarios a company is using in its near- and long-term planning, as well as its","page_number":605,"box":{"x":116,"y":258,"width":760,"height":12}},{"id":"25524e2f-2f1f-4d14-bdac-c999d2c00424","block_type":"box","text":"scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for","page_number":605,"box":{"x":116,"y":273,"width":739,"height":12}},{"id":"ea654c7f-8d89-445a-a272-7b47c11363d3","block_type":"box","text":"scope 1 and 2 emissions.","page_number":605,"box":{"x":116,"y":289,"width":194,"height":12}},{"id":"a30e8019-310c-438a-9d15-8d4ebe65fa0f","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against","page_number":605,"box":{"x":117,"y":320,"width":744,"height":12}},{"id":"6c1832cf-1c45-41ac-be31-d865852d1e90","block_type":"box","text":"directors or support for a relevant shareholder proposal if a company does not appear to be adequately","page_number":605,"box":{"x":116,"y":335,"width":771,"height":12}},{"id":"2920eb60-948e-455b-aa78-7a058af5b462","block_type":"box","text":"acting to address or disclosing material climate-related risks, consistent with the parameters set out in","page_number":605,"box":{"x":116,"y":351,"width":761,"height":12}},{"id":"319d0895-705d-4357-bfac-ca3d4ea2589b","block_type":"box","text":"these climate- and decarbonization-specific guidelines. We may recommend supporting shareholder","page_number":605,"box":{"x":116,"y":366,"width":749,"height":12}},{"id":"0d4bf5e5-dbb5-462c-9ec3-25ff0eb090f8","block_type":"box","text":"proposals seeking information relevant to a company’s stated low-carbon transition strategy or targets","page_number":605,"box":{"x":117,"y":382,"width":760,"height":12}},{"id":"e4c3545e-7243-4829-a3d7-22d80e4ae8c5","block_type":"box","text":"that the company does not currently provide and that would be helpful to investment decision-making.","page_number":605,"box":{"x":116,"y":397,"width":760,"height":12}},{"id":"68991187-d62c-4f28-bfda-d41ec3007dc3","block_type":"box","text":"We would not recommend support for shareholder proposals that seek to constrain board or","page_number":605,"box":{"x":116,"y":413,"width":689,"height":12}},{"id":"9aa174f7-e68d-4fd5-b8e8-ac1f7d1d45be","block_type":"box","text":"management decision-making or direct specific business or strategic decisions. As under the BAIS","page_number":605,"box":{"x":117,"y":428,"width":736,"height":12}},{"id":"8dc311a6-1d63-4669-a4b3-5d6704716a41","block_type":"box","text":"benchmark approach, the active portfolio managers are ultimately responsible for voting consistent","page_number":605,"box":{"x":117,"y":444,"width":737,"height":12}},{"id":"796c954c-c009-4c48-aac4-78425745bd41","block_type":"box","text":"with their investment mandate and fund objectives. For the funds and accounts in scope, voting on","page_number":605,"box":{"x":116,"y":459,"width":736,"height":12}},{"id":"8a9e4edc-48a9-4b67-9c25-e08cb9534491","block_type":"box","text":"matters not related to climate risk and the energy transition is undertaken in line with BAIS’ benchmark","page_number":605,"box":{"x":117,"y":475,"width":765,"height":12}},{"id":"eddf23c4-c4d2-437f-ac52-e47856b867c4","block_type":"box","text":"guidelines.","page_number":605,"box":{"x":116,"y":490,"width":85,"height":12}},{"id":"6bbcffd7-4ee9-4ae0-83c7-65c7bca2486c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":605,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"8b717143-7d33-4db0-90fc-e9da132735ea","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":605,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"86475ac6-66e0-4c82-a67a-af4c778ba0e5","block_type":"box","text":"17","page_number":605,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"a74a2fd0-da6c-4b83-9c04-a2e3d6403993","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":605,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"f648e598-c791-4a40-b6ad-e4be5aa77bee","block_type":"box","text":"Appendix 1: How we fulfil and oversee our investment stewardship responsibilities for","page_number":606,"box":{"x":116,"y":87,"width":695,"height":12}},{"id":"19d4dab2-899d-4e37-b048-d0a414ed8ed0","block_type":"box","text":"non-index equity investment strategies","page_number":606,"box":{"x":117,"y":103,"width":316,"height":12}},{"id":"59bdfb7d-053c-4396-b17c-9455d430a2b2","block_type":"box","text":"Oversight","page_number":606,"box":{"x":116,"y":134,"width":83,"height":12}},{"id":"4571ce3b-abd0-464e-929b-e0186d50df98","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including","page_number":606,"box":{"x":116,"y":165,"width":764,"height":12}},{"id":"fad4cfe2-0ff3-4dca-9f8e-ad0405006c8e","block_type":"box","text":"voting in accordance with the BlackRock Active Investment Stewardship Global Engagement and","page_number":606,"box":{"x":116,"y":180,"width":726,"height":12}},{"id":"e70bfa6c-eb9b-4e49-9388-d55f64195f7f","block_type":"box","text":"Voting Guidelines (the “Guidelines”), which require the application of professional judgment and","page_number":606,"box":{"x":116,"y":196,"width":714,"height":12}},{"id":"9ae3fc18-c9c8-4e69-87b8-c3756346f3b1","block_type":"box","text":"consideration of each company’s unique circumstances, as well as input from active investors. BAIS is","page_number":606,"box":{"x":116,"y":211,"width":765,"height":12}},{"id":"2316b6a1-9afa-47a4-8428-db16b63c6a14","block_type":"box","text":"independent from BlackRock Investment Stewardship in our engagement and voting activities,","page_number":606,"box":{"x":117,"y":227,"width":704,"height":12}},{"id":"7fe5ce6a-b736-40be-8d94-0fd641bcbfbc","block_type":"box","text":"reporting lines, and oversight.","page_number":606,"box":{"x":117,"y":242,"width":224,"height":12}},{"id":"273bc78c-e79f-4765-9ee6-87a5abdce566","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders","page_number":606,"box":{"x":116,"y":273,"width":765,"height":12}},{"id":"bfd0535c-dd70-440f-8a32-c233f228e5f2","block_type":"box","text":"in BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s","page_number":606,"box":{"x":117,"y":289,"width":742,"height":12}},{"id":"b95af1ce-5741-4183-9fdf-92447bf07ada","block_type":"box","text":"approach to investment stewardship on non-index equity investment strategies. The Group may advise","page_number":606,"box":{"x":116,"y":304,"width":769,"height":12}},{"id":"3b8dff3c-8f74-4e37-94aa-189b80ad9c61","block_type":"box","text":"on and review amendments to BAIS’ policies and practices. It does not determine voting decisions,","page_number":606,"box":{"x":116,"y":320,"width":739,"height":12}},{"id":"b7874391-6127-44e7-8368-ed9c08ba5810","block_type":"box","text":"which are the responsibility of BAIS and the relevant active equity investors.","page_number":606,"box":{"x":116,"y":335,"width":568,"height":12}},{"id":"cbc64fa9-d9b0-4aa6-be3d-f865fe33dcb8","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues,","page_number":606,"box":{"x":117,"y":366,"width":721,"height":12}},{"id":"f8af65e1-8ef5-46ab-94a5-d350921cd952","block_type":"box","text":"executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a","page_number":606,"box":{"x":116,"y":382,"width":757,"height":12}},{"id":"a3159475-77ac-4da6-b9c3-aca05e225726","block_type":"box","text":"manner consistent with the Guidelines. BAIS also conducts research on corporate governance issues","page_number":606,"box":{"x":117,"y":397,"width":757,"height":12}},{"id":"6efb8f0a-d772-4c59-8566-ee80449004c8","block_type":"box","text":"and participates in industry discussions to contribute to and keep abreast of important developments in","page_number":606,"box":{"x":116,"y":413,"width":768,"height":12}},{"id":"5a8eeb9d-ecff-4baa-adbd-16586eead847","block_type":"box","text":"the corporate governance field. BAIS may use third parties for certain of the foregoing activities and","page_number":606,"box":{"x":116,"y":428,"width":744,"height":12}},{"id":"12368b2e-af74-44da-bc72-170e44582635","block_type":"box","text":"performs oversight of those third parties (see “Use and oversight of third-party vote services providers”","page_number":606,"box":{"x":117,"y":444,"width":765,"height":12}},{"id":"79185692-1799-4dc4-835e-dd6170ae4039","block_type":"box","text":"below).","page_number":606,"box":{"x":117,"y":459,"width":58,"height":12}},{"id":"3910a3cf-1a1a-461f-8dc3-ad952e04e21d","block_type":"box","text":"Voting guidelines and vote execution","page_number":606,"box":{"x":116,"y":490,"width":302,"height":12}},{"id":"e1d7a824-b1fb-4ee6-a0ee-98f943a779db","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the","page_number":606,"box":{"x":117,"y":521,"width":735,"height":12}},{"id":"5df6839d-2179-4d70-9d69-2791bca6e139","block_type":"box","text":"voting items submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have","page_number":606,"box":{"x":116,"y":537,"width":728,"height":12}},{"id":"e4cefd34-331f-4c56-a814-f4865e093ea0","block_type":"box","text":"voting authority. BlackRock votes (or refrains from voting) for each Fund for which we have voting","page_number":606,"box":{"x":116,"y":552,"width":730,"height":12}},{"id":"27ce95de-6871-4fc1-9f26-2f81d0e89cb5","block_type":"box","text":"authority based on our evaluation of the alignment of the voting items with the long-term economic","page_number":606,"box":{"x":116,"y":568,"width":734,"height":12}},{"id":"80df0fc9-a8db-4575-8b14-348504c175f1","block_type":"box","text":"interests of our clients, in the exercise of our independent business judgment, and without regard to the","page_number":606,"box":{"x":117,"y":583,"width":771,"height":12}},{"id":"a141eb4c-9173-48a3-8119-8beccc1c3c09","block_type":"box","text":"relationship of the issuer (or any shareholder proponent or dissident shareholder) to the Fund, the","page_number":606,"box":{"x":117,"y":599,"width":730,"height":12}},{"id":"5880df13-c7a1-46fa-80c8-2ac0e6a7e9ef","block_type":"box","text":"Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":606,"box":{"x":117,"y":614,"width":754,"height":12}},{"id":"2c9737a9-b54d-4b1a-afb7-f66dfbc79af9","block_type":"box","text":"management policies and procedures,” below).","page_number":606,"box":{"x":117,"y":630,"width":353,"height":12}},{"id":"5daec9a2-953f-4cc1-8959-d8fcf7ab430d","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the","page_number":606,"box":{"x":116,"y":661,"width":754,"height":12}},{"id":"2de93cd9-3670-4186-a3bb-0c25c145016e","block_type":"box","text":"Guidelines, although portfolio managers have the right to vote differently on their holdings if they","page_number":606,"box":{"x":117,"y":676,"width":713,"height":12}},{"id":"d2415b31-65af-4a29-89cc-fe3a54f1d0d7","block_type":"box","text":"determine doing so is more aligned with the investment objective and financial interests of clients","page_number":606,"box":{"x":116,"y":692,"width":719,"height":12}},{"id":"b77f60f2-cf5f-4224-b350-ac04f24699eb","block_type":"box","text":"invested in the funds they manage.","page_number":606,"box":{"x":117,"y":707,"width":258,"height":12}},{"id":"e388ddbc-34e9-46c1-b135-d7bcc670c77b","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case","page_number":606,"box":{"x":116,"y":738,"width":726,"height":12}},{"id":"d179c4d0-5781-4e54-ba37-a82ea2602187","block_type":"box","text":"basis, in the context of the individual circumstances of each company and the specific issue under","page_number":606,"box":{"x":117,"y":754,"width":728,"height":12}},{"id":"f1082b4c-3e65-4b76-b400-e6ecd8f5810e","block_type":"box","text":"review. As such, the Guidelines do not indicate how BAIS will vote in every instance. Rather, they","page_number":606,"box":{"x":117,"y":769,"width":723,"height":12}},{"id":"6616ba97-53a5-4e89-b1bc-7425ebc545cb","block_type":"box","text":"reflect our view about corporate governance issues generally, and provide insight into how we typically","page_number":606,"box":{"x":117,"y":785,"width":761,"height":12}},{"id":"e1c8f586-87b4-4785-ad79-e15c21aaff65","block_type":"box","text":"approach issues that are commonly put to a shareholder vote. The Guidelines are reviewed annually","page_number":606,"box":{"x":116,"y":800,"width":747,"height":12}},{"id":"44929399-8b21-4d04-9600-3a68a0d4ff6b","block_type":"box","text":"and updated as necessary to reflect changes in market practices, developments in corporate","page_number":606,"box":{"x":116,"y":816,"width":688,"height":12}},{"id":"6f75c233-46b9-4595-ac22-dcd2840cfa51","block_type":"box","text":"governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":606,"box":{"x":116,"y":831,"width":765,"height":12}},{"id":"d425cb45-1779-4920-80d6-a7bf6a0a9a39","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":606,"box":{"x":116,"y":847,"width":751,"height":12}},{"id":"7b66d12f-87d5-4de0-8576-02c9e7b48a0e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":606,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"0f773897-8c62-4a82-b75c-096bac7a7863","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":606,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"c55058cb-c8b8-4c59-a58f-9f7a9fbcdd45","block_type":"box","text":"18","page_number":606,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"e73ad976-cf9f-473f-b651-b29a2a710ab8","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":606,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9f139e82-73b9-4750-b60c-d678f85e5009","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such","page_number":607,"box":{"x":117,"y":87,"width":740,"height":12}},{"id":"11848f5e-70c4-415d-b52c-9465b7841bf4","block_type":"box","text":"proxies, as well as the desirability of voting such proxies. These issues include, but are not limited to: i)","page_number":607,"box":{"x":117,"y":102,"width":768,"height":13}},{"id":"40b7953a-9137-4967-8842-20ccdb4160e6","block_type":"box","text":"untimely notice of shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii)","page_number":607,"box":{"x":117,"y":118,"width":735,"height":12}},{"id":"f5846810-56bd-465d-89a8-f9a0021c0c12","block_type":"box","text":"requirements to vote proxies in person; iv) “share-blocking” (requirements that investors who exercise","page_number":607,"box":{"x":117,"y":134,"width":759,"height":12}},{"id":"5890c892-73f8-4281-80b4-7d2d0691617b","block_type":"box","text":"their voting rights surrender the right to dispose of their holdings from the point at which votes are","page_number":607,"box":{"x":116,"y":149,"width":728,"height":12}},{"id":"34a97a81-d5d0-4df8-9f52-c070ed0b77c4","block_type":"box","text":"submitted until after the after the shareholder meeting has occurred); v) potential difficulties in","page_number":607,"box":{"x":116,"y":165,"width":700,"height":12}},{"id":"61843da3-3e36-428b-bd0a-691b5c42b337","block_type":"box","text":"translating the proxy; vi) regulatory constraints; and vii) requirements to provide local agents with","page_number":607,"box":{"x":116,"y":180,"width":723,"height":12}},{"id":"f554232c-8bf0-4e58-af77-061cf796be2f","block_type":"box","text":"powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":607,"box":{"x":117,"y":196,"width":706,"height":12}},{"id":"bb0e69ca-d29b-4d54-b396-dea34c5c5dd5","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":607,"box":{"x":116,"y":211,"width":742,"height":12}},{"id":"6bb70001-2be7-4b13-a24a-674543b46e5c","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine","page_number":607,"box":{"x":117,"y":242,"width":759,"height":12}},{"id":"3f500ff4-8882-4cce-97af-acf43997d760","block_type":"box","text":"that it is generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full","page_number":607,"box":{"x":116,"y":258,"width":723,"height":12}},{"id":"062e5e60-3b0d-4f61-94fd-89670435e14e","block_type":"box","text":"allocation) if the costs (including but not limited to opportunity costs associated with share-blocking","page_number":607,"box":{"x":116,"y":273,"width":737,"height":12}},{"id":"1bba0fb0-ff7a-4b0f-8f34-e6d48aa3aff7","block_type":"box","text":"constraints) associated with exercising a vote are expected to outweigh the benefit the client would","page_number":607,"box":{"x":116,"y":289,"width":739,"height":12}},{"id":"fd96775a-ab31-483a-922f-e9d5546272ea","block_type":"box","text":"derive by voting on the proposal.","page_number":607,"box":{"x":116,"y":304,"width":248,"height":12}},{"id":"4f2c6a85-bf25-4031-8ee9-baaadd73d4fe","block_type":"box","text":"Voting Choice","page_number":607,"box":{"x":116,"y":335,"width":118,"height":12}},{"id":"44d52ebc-68a3-421d-bbfc-dc96e9527714","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to","page_number":607,"box":{"x":117,"y":366,"width":733,"height":12}},{"id":"701654f5-755a-4500-bd0f-a86ee7a2b935","block_type":"box","text":"participate in the proxy voting process where legally and operationally viable.","page_number":607,"box":{"x":117,"y":382,"width":575,"height":12}},{"id":"86461887-e065-4068-b349-8dace9c9c817","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in","page_number":607,"box":{"x":116,"y":413,"width":748,"height":12}},{"id":"aee3e079-90b8-482b-824d-acd371cde255","block_type":"box","text":"the U.S., UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In","page_number":607,"box":{"x":116,"y":428,"width":716,"height":12}},{"id":"1fd8cdd5-1548-4a54-a552-c3abee59b035","block_type":"box","text":"addition, institutional clients in separately managed accounts (SMAs) are eligible for BlackRock Voting","page_number":607,"box":{"x":116,"y":444,"width":764,"height":12}},{"id":"c7e8f449-510b-4fc7-9480-1a8b55179863","block_type":"box","text":"Choice regardless of their investment strategies.","page_number":607,"box":{"x":117,"y":459,"width":357,"height":12}},{"id":"b4d04f04-e0a7-4afe-ae92-a45b55283325","block_type":"box","text":"12","page_number":607,"box":{"x":477,"y":459,"width":11,"height":6}},{"id":"7de37411-efad-4fd7-acfe-0688245704fb","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently","page_number":607,"box":{"x":116,"y":490,"width":740,"height":12}},{"id":"fefb0271-3cff-4e0a-9cf1-fb589c167e97","block_type":"box","text":"depending on whether our clients have authorized BAIS to vote on their behalf, have authorized","page_number":607,"box":{"x":116,"y":506,"width":715,"height":12}},{"id":"d580e5ac-0acb-469f-b5d0-b7b308cb5a27","block_type":"box","text":"BlackRock to vote in accordance with a third-party policy, or have elected to vote shares in accordance","page_number":607,"box":{"x":117,"y":521,"width":769,"height":12}},{"id":"79ba6fc2-8467-4f9e-8aea-01bae928a035","block_type":"box","text":"with their own policy. Our clients have greater control over proxy voting because of Voting Choice.","page_number":607,"box":{"x":116,"y":537,"width":727,"height":12}},{"id":"b3ab5d50-e2d5-4b83-9d2f-d659038c02c1","block_type":"box","text":"13","page_number":607,"box":{"x":846,"y":537,"width":10,"height":6}},{"id":"38e28a29-4d74-4abc-bbc9-d72c98cbb055","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":607,"box":{"x":117,"y":568,"width":452,"height":12}},{"id":"2f3cc9e4-9867-46b4-9fb1-3471a075428b","block_type":"box","text":"Third-party vote services providers — or proxy research firms — provide research and","page_number":607,"box":{"x":116,"y":599,"width":646,"height":12}},{"id":"fa62e8b1-ebd5-46b1-ac1f-426b27abdcf4","block_type":"box","text":"recommendations on proxy votes, as well as voting infrastructure. BlackRock contracts primarily with","page_number":607,"box":{"x":117,"y":614,"width":752,"height":12}},{"id":"e614b4ed-3807-4b83-9129-0c616698a9d8","block_type":"box","text":"the vote services provider ISS and leverages its online platform to supply research and support voting,","page_number":607,"box":{"x":116,"y":630,"width":765,"height":12}},{"id":"7ab3ca9e-58af-42c4-a6b0-8d05109b101e","block_type":"box","text":"record keeping, and reporting processes. We also use Glass Lewis’ research and analysis as an input","page_number":607,"box":{"x":117,"y":645,"width":761,"height":12}},{"id":"284045ea-dd3b-46bb-8d38-f6777e56f4cf","block_type":"box","text":"into our voting process. It is important to note that, although proxy research firms provide important","page_number":607,"box":{"x":117,"y":661,"width":733,"height":12}},{"id":"4646da60-adcb-4626-b94a-5e28a2d9778e","block_type":"box","text":"data and analysis, BAIS does not rely solely on their information or follow their voting","page_number":607,"box":{"x":116,"y":676,"width":629,"height":12}},{"id":"fadcd88e-2d93-4945-81a9-18bda8239aef","block_type":"box","text":"recommendations. A company’s disclosures, our engagements and voting, investment colleagues’","page_number":607,"box":{"x":117,"y":692,"width":728,"height":12}},{"id":"8e26e00f-37f3-4ad7-856f-1d2b567e95c9","block_type":"box","text":"insights and our Guidelines are important inputs into our voting decisions on behalf of clients.","page_number":607,"box":{"x":117,"y":707,"width":689,"height":12}},{"id":"95e83d86-b93e-4385-8f64-8864b6a31af9","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to","page_number":607,"box":{"x":117,"y":738,"width":722,"height":12}},{"id":"46220ce9-db00-4c37-9d9f-d185d8f0d40b","block_type":"box","text":"streamline the voting process by making voting recommendations based on BAIS’ Guidelines when the","page_number":607,"box":{"x":116,"y":754,"width":765,"height":12}},{"id":"4e440216-a77f-4534-8699-3c190d76caa8","block_type":"box","text":"items on a shareholder meeting agenda are routine. Agenda items that are not routine are referred","page_number":607,"box":{"x":117,"y":769,"width":730,"height":12}},{"id":"0e3e8135-8ed2-4743-8013-aeda2c54ae64","block_type":"box","text":"back to BAIS to assess, escalate as necessary to the relevant portfolio managers and vote. BAIS","page_number":607,"box":{"x":117,"y":785,"width":719,"height":12}},{"id":"ce7e1b47-ac1a-4416-9263-450a5d373c85","block_type":"box","text":"reviews and can override the recommendations of the vote services provider at any time prior to the","page_number":607,"box":{"x":117,"y":800,"width":739,"height":12}},{"id":"28468eb1-70ae-4b9f-b3ea-7f7a5b39c08c","block_type":"box","text":"12","page_number":607,"box":{"x":144,"y":841,"width":8,"height":5}},{"id":"bb514394-362c-422d-bcca-e9dd75fc955b","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the","page_number":607,"box":{"x":170,"y":841,"width":679,"height":9}},{"id":"79e3485a-b93f-4757-b48f-32b2c608dc31","block_type":"box","text":"policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast","page_number":607,"box":{"x":170,"y":854,"width":695,"height":9}},{"id":"4f067448-826f-4999-bd42-8fdf0f28f2f7","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":607,"box":{"x":170,"y":867,"width":292,"height":9}},{"id":"f58108ec-6370-4f86-b184-f88f7bf5d255","block_type":"box","text":"13","page_number":607,"box":{"x":144,"y":880,"width":8,"height":5}},{"id":"c8c755ea-931b-4afc-a77c-a947ee323590","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":607,"box":{"x":171,"y":880,"width":678,"height":9}},{"id":"b098729a-e2f4-498e-847f-455e5b74e2fa","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":607,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"e25caba7-7069-4ad4-9e26-d4f9866ebbe5","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":607,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"1ec4e56d-4af8-4dd1-b143-685792e222c7","block_type":"box","text":"19","page_number":607,"box":{"x":866,"y":909,"width":17,"height":9}},{"id":"7bc4dbf3-15fc-4f4f-a457-8224a9e42b6c","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":607,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"122bf06e-0f5d-4527-af6a-fa3a350b9249","block_type":"box","text":"vote deadline. Both BAIS and the vote services provider actively monitor securities filings, research","page_number":608,"box":{"x":116,"y":87,"width":741,"height":12}},{"id":"f069f812-d671-4dca-8b57-1f240bc12afb","block_type":"box","text":"reports, company announcements, and direct communications from companies to ensure awareness","page_number":608,"box":{"x":117,"y":102,"width":753,"height":13}},{"id":"ef40ec80-92fa-4655-a632-753020943b06","block_type":"box","text":"of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":608,"box":{"x":116,"y":118,"width":667,"height":12}},{"id":"453e0d65-64e7-4e6c-b368-e4d1e2d1322a","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are","page_number":608,"box":{"x":117,"y":149,"width":751,"height":12}},{"id":"106067d9-c7fb-4240-81c7-36f4560174c0","block_type":"box","text":"meeting our service level expectations and have effective policies and procedures in place to manage","page_number":608,"box":{"x":117,"y":165,"width":759,"height":12}},{"id":"abcacb3e-f2dc-4c40-beb6-5e942ab512a2","block_type":"box","text":"potential conflicts of interest. Our oversight of service providers includes regular meetings with client","page_number":608,"box":{"x":117,"y":180,"width":747,"height":12}},{"id":"429d1d26-dc10-4e65-886f-c56076e0f475","block_type":"box","text":"service teams, systematic monitoring of vendor operations, as well as annual due diligence meetings in","page_number":608,"box":{"x":116,"y":196,"width":771,"height":12}},{"id":"d038810f-16c1-4970-b9ca-5322da4c6e52","block_type":"box","text":"accordance with BlackRock’s firmwide policies.","page_number":608,"box":{"x":116,"y":211,"width":355,"height":12}},{"id":"4391d96d-ab5c-44fe-af85-15fa9bed041b","block_type":"box","text":"Conflicts management policies and procedures","page_number":608,"box":{"x":116,"y":242,"width":383,"height":12}},{"id":"9bbe1519-e57c-4ab3-bbc1-3f2f73e4abb9","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy","page_number":608,"box":{"x":117,"y":273,"width":734,"height":12}},{"id":"55e8d8e8-c79c-4272-8438-6d26077cbf93","block_type":"box","text":"voting activity. Such influence might stem from any relationship between the investee company (or any","page_number":608,"box":{"x":116,"y":289,"width":767,"height":12}},{"id":"7e0ff564-8aa9-489c-8f7e-162fecf7e3d0","block_type":"box","text":"shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a","page_number":608,"box":{"x":116,"y":304,"width":743,"height":12}},{"id":"30cce293-9d4c-4b42-8390-e365ebb0f288","block_type":"box","text":"Fund’s affiliates, or BlackRock employees. 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However, in certain instances, BlackRock","page_number":609,"box":{"x":116,"y":824,"width":758,"height":12}},{"id":"402c33dd-43d5-4420-8430-779e23103b76","block_type":"box","text":"may determine, in our independent business judgment as a fiduciary, that the value of voting","page_number":609,"box":{"x":117,"y":839,"width":691,"height":12}},{"id":"58c49fd2-677d-4564-a35a-628076223d50","block_type":"box","text":"outweighs the securities lending revenue loss to clients and would therefore recall shares to be voted","page_number":609,"box":{"x":116,"y":854,"width":756,"height":13}},{"id":"1effdcef-a3e9-4158-9de3-7292144c570b","block_type":"box","text":"in those instances.","page_number":609,"box":{"x":117,"y":870,"width":143,"height":9}},{"id":"0bb77faa-3d49-4859-a9ea-09c28061e195","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":609,"box":{"x":117,"y":909,"width":338,"height":12}},{"id":"d54366bb-11fc-4a01-8352-e49436e3373f","block_type":"box","text":"Global Engagement and Voting Guidelines |","page_number":609,"box":{"x":534,"y":909,"width":324,"height":12}},{"id":"ce5093e3-54d0-4005-af49-8d49994f4e05","block_type":"box","text":"21","page_number":609,"box":{"x":865,"y":909,"width":16,"height":9}},{"id":"59890553-5358-4a72-b23b-e548ac5b8075","block_type":"box","text":"BNM1026U-6033397-19205817","page_number":609,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"261305c9-7621-4773-a45c-655b68863959","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in","page_number":610,"box":{"x":117,"y":87,"width":731,"height":12}},{"id":"ac54a734-ff4e-4f33-809c-bc58515d4a5d","block_type":"box","text":"order to vote and may modify it as necessary.","page_number":610,"box":{"x":116,"y":102,"width":344,"height":13}},{"id":"e76348a2-1d84-4364-9ea8-245237fe7137","block_type":"box","text":"Reporting and vote transparency","page_number":610,"box":{"x":117,"y":134,"width":267,"height":12}},{"id":"8d578107-49f8-4cf7-bd8e-9c0a1fd74e6b","block_type":"box","text":"BAIS is committed to transparency in the stewardship work we do on behalf of clients. 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