{"annotation_id":"128cf1ed-1c2c-4949-ba9f-71dc36e7cb25","file_hash":"fe9e6ce6e99771545c75225cd7fb1e6c4889096754545e63bced0e53fe7e8042","schema_id":"open/document-extraction","schema_version":"0.5.0","record":{"extraction_type":"boxes","producer":"pdf-extractor-v0.5.0","blocks":[{"id":"360559b7-c5d2-4578-9f1b-b0a49f2e4e06","block_type":"box","text":"BLACKROCK STRATEGIC GLOBAL BOND FUND, INC.","page_number":1,"box":{"x":281,"y":87,"width":441,"height":12}},{"id":"70bb0434-a0f0-4d23-b30e-4b76ebdc78f9","block_type":"box","text":"(the “Fund”)","page_number":1,"box":{"x":457,"y":103,"width":90,"height":11}},{"id":"3b0b492a-2d8b-4470-af9b-a4bfca34d093","block_type":"box","text":"Supplement dated October 1, 2026 (the “Supplement”)","page_number":1,"box":{"x":303,"y":134,"width":397,"height":12}},{"id":"56e98034-0f47-49ef-b8eb-a8752b9ff88e","block_type":"box","text":"to the Fund’s Summary Prospectuses, Prospectuses and Statement of Additional Information (“SAI”),","page_number":1,"box":{"x":133,"y":149,"width":737,"height":12}},{"id":"d66b75bc-2a7a-422d-8b81-f9277060cb61","block_type":"box","text":"each dated April 30, 2026, as supplemented to date","page_number":1,"box":{"x":318,"y":165,"width":368,"height":12}},{"id":"d6e46849-38d6-4e63-9e54-04caab9b2940","block_type":"box","text":"On September 9, 2026, the Board of Directors of the Fund approved a change in the name of the Fund to","page_number":1,"box":{"x":116,"y":196,"width":710,"height":12}},{"id":"10313b1c-c236-44ad-9cf4-b2f8f8304fce","block_type":"box","text":"“BlackRock Global Total Return Fund, Inc.” and certain changes to the Fund’s investment strategies. These","page_number":1,"box":{"x":116,"y":212,"width":732,"height":11}},{"id":"64c37b5b-4700-4e17-a49e-d0ed18de82d8","block_type":"box","text":"changes are expected to become effective on or about December 1, 2026.","page_number":1,"box":{"x":116,"y":227,"width":498,"height":12}},{"id":"b4906920-a60a-4c18-b54a-5eee1aa434c1","block_type":"box","text":"Accordingly, effective on or about December 1, 2026, the following changes are expected to be made to the","page_number":1,"box":{"x":116,"y":258,"width":765,"height":12}},{"id":"fb6f8a82-a96d-4283-bbf8-b6a7519bd549","block_type":"box","text":"Fund’s Summary Prospectuses, Prospectuses and SAI, as applicable:","page_number":1,"box":{"x":116,"y":274,"width":498,"height":11}},{"id":"2ad95296-9a7f-4e23-8509-4b83966dbf18","block_type":"box","text":"Change in the Fund’s Name","page_number":1,"box":{"x":117,"y":305,"width":193,"height":11}},{"id":"c109d6ee-a38d-48d5-b361-e8ea07ed647b","block_type":"box","text":"All references to “BlackRock Strategic Global Bond Fund, Inc.” are changed to “BlackRock Global Total","page_number":1,"box":{"x":116,"y":336,"width":761,"height":11}},{"id":"6b6baad1-90ed-45e4-8fbb-20bcd5455e73","block_type":"box","text":"Return Fund, Inc.” to reflect the Fund’s new name.","page_number":1,"box":{"x":116,"y":351,"width":373,"height":11}},{"id":"de4beffc-f684-4f43-a1b7-384ae8d17259","block_type":"box","text":"Change in the Fund’s Investment Strategies","page_number":1,"box":{"x":117,"y":382,"width":298,"height":12}},{"id":"73363304-6024-4643-93b0-85d6c855ab9f","block_type":"box","text":"The second paragraph of the section of each Summary Prospectus entitled “Key Facts About BlackRock","page_number":1,"box":{"x":116,"y":413,"width":753,"height":12}},{"id":"3c8d66f0-145f-4b6f-ade7-8a3f96946394","block_type":"box","text":"Strategic Global Bond Fund, Inc. — Principal Investment Strategies of the Fund” and the section of each","page_number":1,"box":{"x":116,"y":429,"width":757,"height":11}},{"id":"2d952f5e-a0a5-4a8a-b1e5-faf4ac453752","block_type":"box","text":"Prospectus entitled “Fund Overview — Key Facts About BlackRock Strategic Global Bond Fund, Inc. —","page_number":1,"box":{"x":116,"y":444,"width":758,"height":12}},{"id":"a17a756b-e382-4f09-abfe-51b6334a7d64","block_type":"box","text":"Principal Investment Strategies of the Fund” are deleted in their entirety and replaced with the following:","page_number":1,"box":{"x":116,"y":460,"width":764,"height":11}},{"id":"95e2a3b4-4476-4a54-a2c0-598d04c2d06f","block_type":"box","text":"The Fund will spread its investments among different types of fixed-income securities and different countries","page_number":1,"box":{"x":116,"y":491,"width":742,"height":11}},{"id":"a0e243d9-a44e-41c4-9c2d-9b29982a134f","block_type":"box","text":"based upon Fund management’s analysis of the yield, maturity and currency considerations affecting these","page_number":1,"box":{"x":116,"y":506,"width":723,"height":12}},{"id":"e4e41a76-7a1a-4a96-9387-148f8eed84d0","block_type":"box","text":"securities. The fixed-income securities in which the Fund may invest include: U.S. and foreign corporate fixed","page_number":1,"box":{"x":117,"y":522,"width":749,"height":11}},{"id":"df914850-3e3c-4010-a7a9-5fb249318e2b","block_type":"box","text":"income securities; obligations issued or guaranteed by the U.S. Government or a foreign government or their","page_number":1,"box":{"x":116,"y":537,"width":738,"height":12}},{"id":"e679d3d7-4616-4f4d-b1fd-c0deb4253b02","block_type":"box","text":"agencies, instrumentalities or political subdivisions; mortgage-backed securities, including agency mortgage","page_number":1,"box":{"x":116,"y":553,"width":735,"height":11}},{"id":"2ec81476-1e62-4c1e-b947-ed5d5ee8b2a3","block_type":"box","text":"pass-through securities and commercial mortgage-backed securities; mortgage to-be-announced (“TBA”)","page_number":1,"box":{"x":116,"y":568,"width":715,"height":12}},{"id":"b22cba8b-d8ac-4cc7-ad59-43ed02900540","block_type":"box","text":"securities; municipal securities; and asset-backed securities. The Fund’s investments may include junk bonds and","page_number":1,"box":{"x":117,"y":584,"width":768,"height":11}},{"id":"364900f7-cd39-4567-a43e-9a2d1b7e8e34","block_type":"box","text":"unrated securities, and the Fund may invest up to 100% of its assets in securities classified as junk bonds.","page_number":1,"box":{"x":116,"y":599,"width":715,"height":12}},{"id":"2c61b8f1-3056-4b14-95af-5822b7d5e5d0","block_type":"box","text":"The second paragraph of the section of each Prospectus entitled “Details About the Fund — How the Fund","page_number":1,"box":{"x":116,"y":630,"width":770,"height":12}},{"id":"55016f98-6511-4cd7-811f-bdb782809b30","block_type":"box","text":"Invests — Principal Investment Strategies” is deleted in its entirety and replaced with the following:","page_number":1,"box":{"x":116,"y":646,"width":722,"height":11}},{"id":"a9c3ba6f-7ff9-492e-8c6b-3270b3222cc1","block_type":"box","text":"There is no restriction on the types of debt securities the Fund can buy or on the maturity of those securities. The","page_number":1,"box":{"x":116,"y":677,"width":760,"height":11}},{"id":"f934481b-baf4-42ae-aaca-4737fdcff8d6","block_type":"box","text":"fixed-income securities in which the Fund may invest include U.S. and foreign corporate fixed-income securities;","page_number":1,"box":{"x":116,"y":692,"width":765,"height":12}},{"id":"06943284-9238-4f90-9769-08381b007779","block_type":"box","text":"obligations issued or guaranteed by the U.S. Government or a foreign government or their agencies,","page_number":1,"box":{"x":116,"y":708,"width":673,"height":11}},{"id":"a1ce8986-0c18-4f14-942d-80e0be3a1738","block_type":"box","text":"instrumentalities or political subdivisions; mortgage-backed securities, including agency mortgage pass-through","page_number":1,"box":{"x":116,"y":723,"width":756,"height":12}},{"id":"882770d0-0b88-40a5-935f-7e91d9625965","block_type":"box","text":"securities and commercial mortgage-backed securities; mortgage to-be-announced (“TBA”) securities; municipal","page_number":1,"box":{"x":117,"y":739,"width":762,"height":11}},{"id":"97adb42f-b5b3-4a7b-926a-4bfa50c45cbe","block_type":"box","text":"securities; and asset-backed securities. The Fund also may invest in securities issued by certain international","page_number":1,"box":{"x":117,"y":754,"width":729,"height":12}},{"id":"003968c6-8315-4b0b-bff9-fbd41343c32e","block_type":"box","text":"organizations. The Fund’s investments may include junk bonds and unrated securities, and the Fund may invest","page_number":1,"box":{"x":116,"y":770,"width":752,"height":11}},{"id":"4eed1ad7-f34e-4ad5-a63d-67f487a78059","block_type":"box","text":"up to 100% of its assets in securities classified as junk bonds. The Fund will spread its investments among","page_number":1,"box":{"x":116,"y":785,"width":716,"height":12}},{"id":"9af4d75a-aa1b-4815-9d40-5bd7461b6dd6","block_type":"box","text":"different types of fixed-income securities and different countries based upon Fund management’s analysis of the","page_number":1,"box":{"x":116,"y":801,"width":758,"height":11}},{"id":"b90afd4a-08fb-47de-8be9-26e636b96e3d","block_type":"box","text":"yield, maturity and currency considerations affecting these securities.","page_number":1,"box":{"x":116,"y":816,"width":466,"height":12}},{"id":"0e6ed30e-76c0-4007-9889-1ae70c643b5e","block_type":"box","text":"NM1026U-5982643-1/241","page_number":1,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"85716383-af14-4da0-a703-0d22b7c04a66","block_type":"box","text":"The first eleven paragraphs following the chart of the section of the SAI entitled “Part I: Information","page_number":2,"box":{"x":116,"y":87,"width":730,"height":12}},{"id":"270faa09-087d-41a7-b595-4eb99b28289b","block_type":"box","text":"About the Fund — I. Investment Objectives and Policies” beginning on page I-5 are deleted in their","page_number":2,"box":{"x":116,"y":103,"width":718,"height":12}},{"id":"832aa6cc-46e1-413a-89fa-769270bc8129","block_type":"box","text":"entirety.","page_number":2,"box":{"x":116,"y":118,"width":64,"height":12}},{"id":"073bade4-ce8e-4755-a078-ded382cbcd25","block_type":"box","text":"Shareholders should retain this Supplement for future reference.","page_number":2,"box":{"x":267,"y":149,"width":470,"height":12}},{"id":"3fe679e0-bdfd-4db9-9e3e-48e9ee6798b2","block_type":"box","text":"PR2SAI-SGB-1026SUP","page_number":2,"box":{"x":116,"y":181,"width":168,"height":9}},{"id":"0c4cfb26-6c07-4f33-8773-e616bb25d01d","block_type":"box","text":"- 2 -","page_number":2,"box":{"x":486,"y":909,"width":27,"height":9}},{"id":"9d33954e-9492-4483-81fa-a1978117f164","block_type":"box","text":"NM1026U-5982643-2/241","page_number":2,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"3dc76d82-13d3-4622-a683-47760c8eeebb","block_type":"box","text":"BlackRock Advantage Global Fund, Inc.","page_number":3,"box":{"x":116,"y":87,"width":296,"height":12}},{"id":"e3cdb45b-f021-4fb7-8d40-fcadb7ecec87","block_type":"box","text":"BlackRock Advantage SMID Cap Fund, Inc.","page_number":3,"box":{"x":116,"y":103,"width":325,"height":12}},{"id":"b98e47ed-06d8-4b91-8a3d-7dcf6c2af089","block_type":"box","text":"BlackRock Allocation Target Shares","page_number":3,"box":{"x":116,"y":118,"width":266,"height":12}},{"id":"f87dd7a5-ba8b-4239-af4b-f7798c8544a7","block_type":"box","text":"BlackRock Balanced Fund, Inc.","page_number":3,"box":{"x":116,"y":134,"width":232,"height":11}},{"id":"8a829231-207e-4023-ab9a-ac5cafb9d816","block_type":"box","text":"BlackRock Bond Fund, Inc.","page_number":3,"box":{"x":116,"y":150,"width":203,"height":11}},{"id":"d04ba9ea-3c3c-4662-9048-472c3ddbba35","block_type":"box","text":"BlackRock California Municipal Series Trust","page_number":3,"box":{"x":116,"y":165,"width":331,"height":12}},{"id":"36fb79e7-d4f4-4204-8aa4-c606b6c370b2","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.","page_number":3,"box":{"x":116,"y":180,"width":317,"height":12}},{"id":"cb734177-ddf4-4118-b5ef-ec9a0f86a6ed","block_type":"box","text":"BlackRock Emerging Markets Fund, Inc.","page_number":3,"box":{"x":116,"y":196,"width":301,"height":12}},{"id":"f9b5b89c-d2d1-4349-93c7-7a796c2ea639","block_type":"box","text":"BlackRock Equity Dividend Fund","page_number":3,"box":{"x":116,"y":212,"width":248,"height":11}},{"id":"3675f4e4-78fc-44db-a156-103e578128fc","block_type":"box","text":"BlackRock Financial Institutions Series Trust","page_number":3,"box":{"x":116,"y":227,"width":332,"height":9}},{"id":"dc3657b9-94d8-4fe5-b844-c9f7413e2576","block_type":"box","text":"BlackRock Funds","page_number":3,"box":{"x":116,"y":243,"width":127,"height":9}},{"id":"0f2bdf8d-49bc-4cbe-aa57-d1541c2e9a68","block_type":"box","text":"SM","page_number":3,"box":{"x":244,"y":242,"width":15,"height":6}},{"id":"fbeaaffb-238d-4e64-88b9-81a6a6be571d","block_type":"box","text":"BlackRock Funds II","page_number":3,"box":{"x":116,"y":258,"width":149,"height":9}},{"id":"d5d13486-ecd8-4e5c-a1c5-a50429fe5a67","block_type":"box","text":"BlackRock Funds III","page_number":3,"box":{"x":116,"y":274,"width":155,"height":9}},{"id":"7a995ee3-f9b9-4d7d-a7b8-d7552af406a2","block_type":"box","text":"BlackRock Funds IV","page_number":3,"box":{"x":116,"y":289,"width":154,"height":9}},{"id":"14d68106-fc90-443f-95c0-81f8dcc59690","block_type":"box","text":"BlackRock Funds V","page_number":3,"box":{"x":116,"y":305,"width":148,"height":9}},{"id":"886a8c44-b212-4281-bd1b-ac8557d7db4d","block_type":"box","text":"BlackRock Funds VI","page_number":3,"box":{"x":116,"y":320,"width":154,"height":9}},{"id":"4855e573-83c7-4605-9001-daa37ba54e77","block_type":"box","text":"BlackRock Global Allocation Fund, Inc.","page_number":3,"box":{"x":116,"y":336,"width":292,"height":11}},{"id":"d9eaee26-e28d-49a3-acc2-da05d6bf8fc0","block_type":"box","text":"BlackRock Index Funds, Inc.","page_number":3,"box":{"x":116,"y":351,"width":213,"height":11}},{"id":"aaa3214c-0d3e-4968-9576-d5d9c8ad0006","block_type":"box","text":"BlackRock International Select Equity Fund","page_number":3,"box":{"x":520,"y":87,"width":324,"height":12}},{"id":"2a3d9aab-2667-4377-bd2b-25f313ff003c","block_type":"box","text":"BlackRock Large Cap Focus Growth Fund, Inc.","page_number":3,"box":{"x":520,"y":103,"width":349,"height":12}},{"id":"d45321eb-b9ed-463f-9243-14ee926ef42e","block_type":"box","text":"BlackRock Large Cap Focus Value Fund, Inc.","page_number":3,"box":{"x":520,"y":118,"width":335,"height":12}},{"id":"cd7b2712-d232-4414-970f-dd5cd48a8ded","block_type":"box","text":"BlackRock Large Cap Series Funds, Inc.","page_number":3,"box":{"x":520,"y":134,"width":296,"height":12}},{"id":"0afed6c0-3d2a-4241-aa16-2dd5a71a6357","block_type":"box","text":"BlackRock Liquidity Funds","page_number":3,"box":{"x":520,"y":149,"width":203,"height":12}},{"id":"6eb6b9b0-c3c7-49e0-a874-1862b2f58d97","block_type":"box","text":"BlackRock Mid-Cap Value Series, Inc.","page_number":3,"box":{"x":520,"y":165,"width":282,"height":12}},{"id":"16874df8-b619-444e-8319-d3ec6c34448f","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust","page_number":3,"box":{"x":520,"y":180,"width":339,"height":12}},{"id":"09f4fd12-73c5-47e3-b205-5ec85e288ad0","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc.","page_number":3,"box":{"x":520,"y":196,"width":282,"height":12}},{"id":"88e70a0f-d68e-4f90-a460-06bfde3cb100","block_type":"box","text":"BlackRock Municipal Series Trust","page_number":3,"box":{"x":520,"y":211,"width":252,"height":12}},{"id":"bf99428f-5d68-43ab-8c29-e933460f0adf","block_type":"box","text":"BlackRock Natural Resources Trust","page_number":3,"box":{"x":520,"y":227,"width":264,"height":9}},{"id":"2fcb5572-c9fe-4725-84b8-da5fccf6b7dd","block_type":"box","text":"BlackRock Series Fund, Inc.","page_number":3,"box":{"x":520,"y":242,"width":208,"height":12}},{"id":"2661000d-79ac-40cf-ae21-273ab63b338f","block_type":"box","text":"BlackRock Series Fund II, Inc.","page_number":3,"box":{"x":520,"y":258,"width":226,"height":11}},{"id":"f605c9a5-53a5-438f-a69e-340b4101155d","block_type":"box","text":"BlackRock Series, Inc.","page_number":3,"box":{"x":520,"y":274,"width":166,"height":11}},{"id":"cdfe12c1-1276-4ded-8752-e6c67aee3c16","block_type":"box","text":"BlackRock Strategic Global Bond Fund, Inc.","page_number":3,"box":{"x":520,"y":289,"width":325,"height":12}},{"id":"bc0ea771-b605-4c8b-ab1e-afd450eab342","block_type":"box","text":"BlackRock Unconstrained Equity Fund","page_number":3,"box":{"x":520,"y":305,"width":288,"height":11}},{"id":"488833e6-639b-43b8-a4db-3fe050d9fc6e","block_type":"box","text":"BlackRock Variable Series Funds, Inc.","page_number":3,"box":{"x":520,"y":320,"width":282,"height":11}},{"id":"de5994e9-8817-4768-99f5-9a73ff3da051","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.","page_number":3,"box":{"x":520,"y":336,"width":299,"height":11}},{"id":"dbe49945-77c0-4192-bf08-f4aeeb5a1290","block_type":"box","text":"Supplement dated September 11, 2026","page_number":3,"box":{"x":362,"y":382,"width":280,"height":12}},{"id":"bf4b9026-1440-4d09-adbf-9f2a0d798786","block_type":"box","text":"to the Statement of Additional Information (“SAI”) of each of the funds listed in Appendix A (each, a","page_number":3,"box":{"x":137,"y":398,"width":729,"height":11}},{"id":"a489496b-3a14-47a5-9182-e11cda84cb7f","block_type":"box","text":"“Fund”), as amended from time to time.","page_number":3,"box":{"x":356,"y":413,"width":292,"height":11}},{"id":"ca52c372-9185-46dd-a5ea-a75e6956b969","block_type":"box","text":"Each Fund’s SAI is amended as follows:","page_number":3,"box":{"x":116,"y":444,"width":292,"height":9}},{"id":"4d9ef6bc-0398-4c48-840c-2a39c2ec7d1d","block_type":"box","text":"The list in the section entitled “Purchase of Shares - Additional Payments by BlackRock - D. Service","page_number":3,"box":{"x":116,"y":475,"width":722,"height":12}},{"id":"5a60d939-39df-44a3-98e9-a96060f5d83c","block_type":"box","text":"Organizations Receiving Additional Payments” in Part II, or in the section entitled “Miscellaneous -","page_number":3,"box":{"x":116,"y":491,"width":721,"height":11}},{"id":"6f2dc07b-b6f8-44c9-b809-982c359a032d","block_type":"box","text":"Additional Payments by BlackRock - D. Service Organizations Receiving Additional Payments,”","page_number":3,"box":{"x":116,"y":506,"width":695,"height":12}},{"id":"076ae744-bbb4-46c5-9f58-171f3845614d","block_type":"box","text":"“Investment Advisory Arrangements - Additional Payments by BlackRock - D. Service Organizations","page_number":3,"box":{"x":116,"y":522,"width":734,"height":11}},{"id":"5b90af1d-1d57-4684-a37a-a61ea9164539","block_type":"box","text":"Receiving Additional Payments” or “Investment Adviser and Other Service Providers - Additional","page_number":3,"box":{"x":116,"y":537,"width":712,"height":12}},{"id":"558b6c14-dadb-44b0-bd57-16305322cd1c","block_type":"box","text":"Payments by BlackRock - D. Service Organizations Receiving Additional Payments,” as applicable, of each","page_number":3,"box":{"x":116,"y":553,"width":771,"height":11}},{"id":"31234b0b-29c5-46fe-853e-524a9855907e","block_type":"box","text":"Fund’s current SAI, is deleted in its entirety and replaced with the following:","page_number":3,"box":{"x":116,"y":568,"width":557,"height":12}},{"id":"104b8203-18f8-4ff0-b383-69d35b9cf1dc","block_type":"box","text":"&Partners","page_number":3,"box":{"x":116,"y":599,"width":72,"height":9}},{"id":"b1f551d1-158f-4d53-8a1c-bcdaedbe0b83","block_type":"box","text":"AccuTech Systems Corporation","page_number":3,"box":{"x":116,"y":615,"width":219,"height":11}},{"id":"64d999a1-20be-453d-9426-8017dba9d0bb","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":3,"box":{"x":116,"y":630,"width":173,"height":11}},{"id":"e36bac79-1f2a-489d-87c3-e97d3af05431","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":3,"box":{"x":116,"y":646,"width":215,"height":11}},{"id":"a03b0194-c86b-4c1f-aaee-a52b03e8e6dc","block_type":"box","text":"Advisor Group, Inc.","page_number":3,"box":{"x":116,"y":661,"width":134,"height":12}},{"id":"5af2cb8e-d623-4620-b192-21e0b297dd1c","block_type":"box","text":"AE Wealth Management, LLC","page_number":3,"box":{"x":116,"y":677,"width":207,"height":11}},{"id":"21042fba-80f9-4d6b-ba66-4198257cc6b2","block_type":"box","text":"Alight Solutions LLC","page_number":3,"box":{"x":116,"y":692,"width":146,"height":12}},{"id":"1aa0b441-0129-44a1-8cf5-eae07c05edf4","block_type":"box","text":"Allianz Life Financial Services, LLC","page_number":3,"box":{"x":116,"y":708,"width":250,"height":10}},{"id":"13a15694-21b1-4df3-a030-30c2c7be4297","block_type":"box","text":"Allianz Life Insurance Company of New York","page_number":3,"box":{"x":116,"y":723,"width":314,"height":12}},{"id":"2363c2d6-a160-4278-a9e7-6748438626c1","block_type":"box","text":"Allianz Life Insurance Company of North America","page_number":3,"box":{"x":116,"y":739,"width":345,"height":11}},{"id":"56a23ce5-2f5a-401a-9099-068c3da63396","block_type":"box","text":"Altruist Financial LLC","page_number":3,"box":{"x":116,"y":754,"width":154,"height":9}},{"id":"0fbe3e9c-9db0-4f1f-a5c4-ca78f35ad928","block_type":"box","text":"American Enterprise Investment Services, Inc.","page_number":3,"box":{"x":116,"y":770,"width":313,"height":11}},{"id":"9a0f39dd-c677-40a4-a4a2-372a593164f9","block_type":"box","text":"American General Life Insurance Company","page_number":3,"box":{"x":116,"y":785,"width":295,"height":12}},{"id":"72aaecfc-dfff-42b5-bfdb-454be9e04089","block_type":"box","text":"American United Life Insurance Company","page_number":3,"box":{"x":116,"y":801,"width":288,"height":11}},{"id":"0a0fc046-00aa-47bc-92fb-dd3711054cb4","block_type":"box","text":"Annuity Investors Life Insurance Company","page_number":3,"box":{"x":116,"y":816,"width":292,"height":12}},{"id":"9404ef51-28c5-4296-9a40-5c683e4ba6c1","block_type":"box","text":"Anthem Securities LLC","page_number":3,"box":{"x":116,"y":832,"width":165,"height":9}},{"id":"1cae0544-5a18-4866-9817-904a60f3798b","block_type":"box","text":"Argent Institutional Trust Company","page_number":3,"box":{"x":116,"y":847,"width":246,"height":12}},{"id":"30881997-3444-4b3b-942c-183d48af963d","block_type":"box","text":"Ascensus Broker Dealer Services, Inc.","page_number":3,"box":{"x":116,"y":863,"width":263,"height":10}},{"id":"ebcfa31b-d49f-4549-8b30-09f278d5b7e4","block_type":"box","text":"Ascensus, Inc.","page_number":3,"box":{"x":116,"y":878,"width":102,"height":11}},{"id":"c95c2102-4495-402a-9078-1e777279965a","block_type":"box","text":"Atomic Brokerage LLC","page_number":3,"box":{"x":116,"y":894,"width":165,"height":11}},{"id":"858c446b-1649-486a-ae11-37baa4ec4eff","block_type":"box","text":"Avantax Investment Services, LLC","page_number":3,"box":{"x":116,"y":909,"width":237,"height":11}},{"id":"ba00f9cf-d519-4a9b-ac9c-c7d1e30e5015","block_type":"box","text":"Bancroft Capital LLC","page_number":3,"box":{"x":520,"y":599,"width":152,"height":12}},{"id":"3b8f196f-1045-413e-8816-8cdb002451e2","block_type":"box","text":"Bank of America, N.A.","page_number":3,"box":{"x":520,"y":615,"width":161,"height":10}},{"id":"fe5ad08e-3d03-4a45-a8a3-423dc6afb69b","block_type":"box","text":"Bank of New York Mellon","page_number":3,"box":{"x":520,"y":630,"width":185,"height":9}},{"id":"76e83789-044e-43cb-9583-31433883498d","block_type":"box","text":"Barclays Capital Inc.","page_number":3,"box":{"x":520,"y":646,"width":146,"height":11}},{"id":"c1a0f127-967a-4396-9193-c491a6fd5ff7","block_type":"box","text":"Benefit Plans Administrative Services, Inc.","page_number":3,"box":{"x":520,"y":661,"width":290,"height":11}},{"id":"2c0091e8-bb67-407f-b121-516ab8ffe058","block_type":"box","text":"Benefit Trust Company","page_number":3,"box":{"x":520,"y":677,"width":158,"height":11}},{"id":"01ee8a35-97da-4b06-80b4-a3ba5d017b26","block_type":"box","text":"Beta Capital Securities LLC","page_number":3,"box":{"x":520,"y":692,"width":190,"height":12}},{"id":"17b41935-50a2-47af-bf9c-38ee0fa64a52","block_type":"box","text":"bfinance US Ltd.","page_number":3,"box":{"x":520,"y":708,"width":114,"height":9}},{"id":"ae4ec668-05bc-455f-861c-a7a3bd1c232c","block_type":"box","text":"BlackRock Advisors, LLC","page_number":3,"box":{"x":520,"y":723,"width":179,"height":11}},{"id":"52cbf9f3-ea35-4dc9-bc52-ed36ec05b4e8","block_type":"box","text":"BMO Capital Markets Corp.","page_number":3,"box":{"x":520,"y":739,"width":191,"height":11}},{"id":"9f384387-5f9d-479e-80ed-a63e42076171","block_type":"box","text":"BNP Paribas","page_number":3,"box":{"x":520,"y":754,"width":85,"height":9}},{"id":"49d97ff2-5848-4cfa-a1ee-d43e1522bd6f","block_type":"box","text":"BNP Paribas Investment Partners UK Limited","page_number":3,"box":{"x":520,"y":770,"width":311,"height":9}},{"id":"eb7b54f3-ae53-40f9-8d36-29be7b2206ab","block_type":"box","text":"BNY Mellon, N.A.","page_number":3,"box":{"x":520,"y":785,"width":128,"height":11}},{"id":"d695b5d4-4592-4c7f-8c3c-c1f47f624d53","block_type":"box","text":"BofA Securities, Inc.","page_number":3,"box":{"x":520,"y":801,"width":141,"height":10}},{"id":"5dd10b7e-6557-4db7-b468-71cc12d46bdc","block_type":"box","text":"BOKF, N.A.","page_number":3,"box":{"x":520,"y":816,"width":84,"height":11}},{"id":"f4496ee2-25c2-4686-8f08-3def96c2d600","block_type":"box","text":"Brighthouse Life Insurance Company","page_number":3,"box":{"x":520,"y":832,"width":258,"height":11}},{"id":"dc21030f-7b8d-4e3f-b3d0-6e1ad50d96da","block_type":"box","text":"Brighthouse Life Insurance Company of NY","page_number":3,"box":{"x":520,"y":847,"width":305,"height":12}},{"id":"ef96ab1f-b016-4b23-b88e-42ef50b49ab5","block_type":"box","text":"Broadridge Business Process Outsourcing, LLC","page_number":3,"box":{"x":520,"y":863,"width":327,"height":11}},{"id":"056186ca-3b21-4385-b760-73bb1606a633","block_type":"box","text":"Brown Brothers Harriman & Co.","page_number":3,"box":{"x":520,"y":878,"width":226,"height":9}},{"id":"cf1c7fc4-1208-403a-9ad2-538c9fba2fbf","block_type":"box","text":"Cabrera Capital Markets, LLC","page_number":3,"box":{"x":520,"y":894,"width":210,"height":11}},{"id":"afdbf832-0c76-4e48-8c4a-40871afda598","block_type":"box","text":"Capital One, N.A.","page_number":3,"box":{"x":520,"y":909,"width":121,"height":12}},{"id":"fa3bcdbe-e035-403f-addd-670006d6f20e","block_type":"box","text":"NM1026U-5982643-3/241","page_number":3,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"f5faca6f-505e-41a5-a2b4-3662df69d0bf","block_type":"box","text":"Cetera Advisor Networks LLC","page_number":4,"box":{"x":116,"y":88,"width":212,"height":9}},{"id":"a3cf5171-bcf0-477b-8832-be04364536f3","block_type":"box","text":"Cetera Advisors LLC","page_number":4,"box":{"x":116,"y":103,"width":149,"height":9}},{"id":"e3f65d9d-7f43-4058-a0d9-9879a925ab4f","block_type":"box","text":"Cetera Financial Group","page_number":4,"box":{"x":116,"y":119,"width":162,"height":11}},{"id":"322efcaf-4284-4944-94c1-e77dd6fd31b9","block_type":"box","text":"Cetera Financial Specialists LLC","page_number":4,"box":{"x":116,"y":134,"width":227,"height":12}},{"id":"bd2b10eb-6f23-40f6-abec-1fa9fda59ce0","block_type":"box","text":"Cetera Investment Services LLC","page_number":4,"box":{"x":116,"y":150,"width":224,"height":9}},{"id":"886354ea-d7eb-4014-b0b6-e0792faa9cde","block_type":"box","text":"CF Secured, LLC","page_number":4,"box":{"x":116,"y":165,"width":123,"height":11}},{"id":"1b57a35a-4170-4a67-8bf6-7777549978df","block_type":"box","text":"Charles Schwab & Co., Inc.","page_number":4,"box":{"x":116,"y":181,"width":192,"height":10}},{"id":"c0fc780b-be24-466e-9197-3d7988e83900","block_type":"box","text":"Charles Schwab Trust Bank","page_number":4,"box":{"x":116,"y":196,"width":192,"height":9}},{"id":"15ea1281-7534-48ff-bd0b-3c0976c93ab1","block_type":"box","text":"Chicago Mercantile Exchange Inc.","page_number":4,"box":{"x":116,"y":212,"width":238,"height":11}},{"id":"b273b30b-1ba4-40bf-a969-25c7c08d5634","block_type":"box","text":"CIM Investment Management, Inc.","page_number":4,"box":{"x":116,"y":227,"width":241,"height":12}},{"id":"48741f64-1698-4f1b-8036-eec89f4d52fd","block_type":"box","text":"Citco Securities, LLC","page_number":4,"box":{"x":116,"y":243,"width":151,"height":10}},{"id":"ade683da-629f-4f2f-9798-30890e04882c","block_type":"box","text":"CitiBank, National Association","page_number":4,"box":{"x":116,"y":258,"width":215,"height":11}},{"id":"990a8f2a-c2da-46b9-87d8-f4c28c02df10","block_type":"box","text":"Citigroup Global Markets, Inc.","page_number":4,"box":{"x":116,"y":274,"width":212,"height":11}},{"id":"6211981e-a4c6-437e-9ce1-438ec0a5f874","block_type":"box","text":"Citizens Bank","page_number":4,"box":{"x":116,"y":289,"width":99,"height":9}},{"id":"388e51df-91e3-430f-925e-aff28d6bfb05","block_type":"box","text":"Citizens Business Bank","page_number":4,"box":{"x":116,"y":305,"width":163,"height":9}},{"id":"026a994b-fbc7-4251-a5c0-3a72020d9411","block_type":"box","text":"CME Shareholder Servicing LLC","page_number":4,"box":{"x":116,"y":320,"width":231,"height":12}},{"id":"14421125-c0c9-4e13-bc7f-bd66c5ea6929","block_type":"box","text":"CMFG Life Insurance Company","page_number":4,"box":{"x":116,"y":336,"width":223,"height":11}},{"id":"4a8e73e5-3231-4f53-8475-9b0ef5d20877","block_type":"box","text":"Comerica Bank","page_number":4,"box":{"x":116,"y":351,"width":109,"height":9}},{"id":"6de3a4fe-4fbb-452a-afbb-aec22fb01d61","block_type":"box","text":"Commonwealth Financial Network","page_number":4,"box":{"x":116,"y":367,"width":242,"height":9}},{"id":"54115b40-e94d-4579-96a4-a52ffd156fbc","block_type":"box","text":"Computershare Trust Company","page_number":4,"box":{"x":116,"y":382,"width":216,"height":12}},{"id":"338d3c7c-435d-4867-bc65-5cc35691e59d","block_type":"box","text":"Conduent HR Services, LLC","page_number":4,"box":{"x":116,"y":398,"width":198,"height":10}},{"id":"5306375b-2384-4669-8d19-73263b26ad85","block_type":"box","text":"Delaware Life Insurance Company","page_number":4,"box":{"x":116,"y":413,"width":240,"height":12}},{"id":"25886a58-56fe-443d-8620-9b7ba1dc9a40","block_type":"box","text":"Delaware Trust Company","page_number":4,"box":{"x":116,"y":429,"width":178,"height":11}},{"id":"48f3af8f-ded9-4dc9-b368-6dbcd2ca5c87","block_type":"box","text":"Deutsche Bank AG","page_number":4,"box":{"x":116,"y":444,"width":135,"height":9}},{"id":"74671e76-01da-48a1-8d2a-8e22d712f8ff","block_type":"box","text":"Deutsche Bank Trust Company Americas","page_number":4,"box":{"x":116,"y":460,"width":285,"height":11}},{"id":"f56b83fa-8984-45da-9f21-ffcd5d300537","block_type":"box","text":"Digital Retirement Solutions, Inc.","page_number":4,"box":{"x":116,"y":475,"width":232,"height":12}},{"id":"5faa79a3-9b0b-4b7d-93fb-8e803247c21c","block_type":"box","text":"Dunham & Associates Investment Counsel, Inc.","page_number":4,"box":{"x":116,"y":491,"width":328,"height":10}},{"id":"7b96865c-b879-4a4d-ac57-aae61b94f470","block_type":"box","text":"Dynasty Financial Partners LLC","page_number":4,"box":{"x":116,"y":506,"width":223,"height":12}},{"id":"fb56ac8b-a799-4f93-a9f2-b3d1541a2fe3","block_type":"box","text":"Edward D. Jones & Co., L.P.","page_number":4,"box":{"x":116,"y":522,"width":200,"height":10}},{"id":"777c4875-c51d-4ca3-a534-38d5405dd8fe","block_type":"box","text":"Empire Fidelity Investments Life Insurance","page_number":4,"box":{"x":116,"y":537,"width":298,"height":12}},{"id":"6bbd5f45-105b-4bf7-a802-59f855e90415","block_type":"box","text":"Company","page_number":4,"box":{"x":116,"y":553,"width":69,"height":11}},{"id":"ef490df8-a99e-4fd1-9d9e-ffb0384a040b","block_type":"box","text":"Empower Annuity Insurance Company of America","page_number":4,"box":{"x":116,"y":568,"width":349,"height":12}},{"id":"2906983f-8e1e-4f0f-a962-7f6da8a5f229","block_type":"box","text":"Empower Financial Services, Inc.","page_number":4,"box":{"x":116,"y":584,"width":232,"height":11}},{"id":"ad09537c-a0f3-42d0-8bb0-da8a6569cab9","block_type":"box","text":"Empower Life & Annuity Insurance Company of","page_number":4,"box":{"x":116,"y":599,"width":336,"height":12}},{"id":"e0871d54-eda0-4cac-ae33-9395c59052ac","block_type":"box","text":"New York","page_number":4,"box":{"x":116,"y":615,"width":74,"height":9}},{"id":"f5fb9667-4930-4b02-8619-227fa64a4d0f","block_type":"box","text":"Empower Plan Services, LLC","page_number":4,"box":{"x":116,"y":630,"width":205,"height":12}},{"id":"0064f452-0830-43ea-83c4-57e53335209f","block_type":"box","text":"Envestnet Asset Management, Inc.","page_number":4,"box":{"x":116,"y":646,"width":238,"height":11}},{"id":"45fa51da-9da2-42a8-8570-ac99a324a68e","block_type":"box","text":"Equitable Advisors, LLC","page_number":4,"box":{"x":116,"y":661,"width":169,"height":12}},{"id":"8a714291-57d8-4872-8e4a-3ee719ba791e","block_type":"box","text":"Equitable Life Insurance Company","page_number":4,"box":{"x":116,"y":677,"width":236,"height":11}},{"id":"08ba5e94-3429-4ac1-944b-6c776e4d5dd1","block_type":"box","text":"E*trade Savings Bank","page_number":4,"box":{"x":116,"y":692,"width":150,"height":12}},{"id":"fcfc0aa0-a974-4895-95e6-ac77b32db722","block_type":"box","text":"Federal Deposit Insurance Corporation","page_number":4,"box":{"x":116,"y":708,"width":262,"height":11}},{"id":"a7c36a8c-2908-4bb4-8185-8ddcfdd125e8","block_type":"box","text":"Fidelity Brokerage Services LLC","page_number":4,"box":{"x":116,"y":723,"width":223,"height":12}},{"id":"0ee5466c-e5c4-4f77-b550-7b0c9c2edfd7","block_type":"box","text":"Fidelity Investments Institutional Operations","page_number":4,"box":{"x":116,"y":739,"width":301,"height":11}},{"id":"ef439be7-cbb4-4378-b5f9-a8adf8d3d055","block_type":"box","text":"Company, Inc.","page_number":4,"box":{"x":116,"y":754,"width":98,"height":12}},{"id":"baa6e4c3-dea9-4a8e-9b9c-d0ac36eff470","block_type":"box","text":"Fidelity Investments Life Insurance Company","page_number":4,"box":{"x":116,"y":770,"width":309,"height":11}},{"id":"54d9df49-a73b-4cdf-8717-1fd1ca82dba5","block_type":"box","text":"Fifth Third Securities, Inc.","page_number":4,"box":{"x":116,"y":785,"width":178,"height":11}},{"id":"6bfc0279-33c4-46e8-980d-207a80bb5c7a","block_type":"box","text":"First Allied Securities, Inc.","page_number":4,"box":{"x":116,"y":801,"width":181,"height":10}},{"id":"ba7add7f-6c6f-4eb7-96d7-d6a72b317f5a","block_type":"box","text":"First Command Financial Planning, Inc.","page_number":4,"box":{"x":116,"y":816,"width":269,"height":12}},{"id":"4bff2033-8da2-4d70-8ffc-060d7bdb9d96","block_type":"box","text":"First Hawaiian Bank","page_number":4,"box":{"x":116,"y":832,"width":143,"height":9}},{"id":"6233d469-f05b-4700-9aad-3ef5307d512d","block_type":"box","text":"First Republic Bank","page_number":4,"box":{"x":116,"y":847,"width":140,"height":12}},{"id":"5ea73ca5-8c7f-4df7-aa6b-e1ded6367004","block_type":"box","text":"First Security Benefit Life Insurance and Annuity","page_number":4,"box":{"x":116,"y":863,"width":339,"height":11}},{"id":"387c1a82-989f-4c47-b5c0-ef6857d30072","block_type":"box","text":"Company of New York","page_number":4,"box":{"x":116,"y":878,"width":162,"height":12}},{"id":"1cd75696-57dc-4f64-8775-96319e90eb2f","block_type":"box","text":"First Symetra National Life Insurance Company of","page_number":4,"box":{"x":520,"y":88,"width":348,"height":11}},{"id":"5eec76e6-8b24-4446-b3d6-fe1a9fac38de","block_type":"box","text":"New York","page_number":4,"box":{"x":520,"y":103,"width":74,"height":9}},{"id":"19aebd34-1b4e-417f-8839-6f5d77d0a4e1","block_type":"box","text":"First-Citizens Bank & Trust Company","page_number":4,"box":{"x":520,"y":119,"width":262,"height":11}},{"id":"8e987e55-7eea-48c8-b175-35e59d08152e","block_type":"box","text":"FIS Brokerage & Securities Services LLC","page_number":4,"box":{"x":520,"y":134,"width":288,"height":12}},{"id":"ede09bee-bcfd-4fbe-8b47-6fda8d5d6d38","block_type":"box","text":"FNEX Capital, LLC","page_number":4,"box":{"x":520,"y":150,"width":141,"height":11}},{"id":"d5749536-2d11-468e-afb7-6372eba9387b","block_type":"box","text":"Forethought Life Insurance Company","page_number":4,"box":{"x":520,"y":165,"width":258,"height":12}},{"id":"41a396a3-b254-40df-98ca-2b66d76fee26","block_type":"box","text":"FSC Securities Corporation","page_number":4,"box":{"x":520,"y":181,"width":190,"height":11}},{"id":"b0abff88-9a9c-4c22-b6f6-c9ce03377783","block_type":"box","text":"Genworth Life and Annuity Insurance Company","page_number":4,"box":{"x":520,"y":196,"width":331,"height":12}},{"id":"234556e3-4731-4102-b295-c617b4963383","block_type":"box","text":"Genworth Life Insurance Company of New York","page_number":4,"box":{"x":520,"y":212,"width":336,"height":11}},{"id":"ce73c399-23a1-4598-8643-913dfdae91f9","block_type":"box","text":"Global Atlantic Distributors, LLC","page_number":4,"box":{"x":520,"y":227,"width":233,"height":11}},{"id":"1b654cdd-1718-4447-814e-96bbecc74f65","block_type":"box","text":"Goldman Sachs & Co.","page_number":4,"box":{"x":520,"y":243,"width":156,"height":9}},{"id":"e04c1180-c94b-4da0-86e1-8f4dc71bfd52","block_type":"box","text":"Great Pacific Securities, LLC","page_number":4,"box":{"x":520,"y":258,"width":203,"height":11}},{"id":"673bbc1f-fd94-4274-9891-7ad6b3601686","block_type":"box","text":"Guardian Insurance & Annuity Co., Inc.","page_number":4,"box":{"x":520,"y":274,"width":275,"height":11}},{"id":"fe0cfe88-4883-40c9-966a-a87b2f280148","block_type":"box","text":"Hancock Whitney Bank","page_number":4,"box":{"x":520,"y":289,"width":166,"height":12}},{"id":"e2018432-bf13-43b6-9d5a-e94757515835","block_type":"box","text":"Hartford Funds Management Company","page_number":4,"box":{"x":520,"y":305,"width":269,"height":11}},{"id":"62bf1f56-552f-4234-bc29-d55045c1f5ba","block_type":"box","text":"Hartford Securities Distribution Company, Inc.","page_number":4,"box":{"x":520,"y":320,"width":322,"height":12}},{"id":"bb91e837-b1ac-4dd9-906c-3bb95ce7c8b1","block_type":"box","text":"Hazeltree Fund Services, Inc.","page_number":4,"box":{"x":520,"y":336,"width":203,"height":10}},{"id":"6e4464eb-d2ac-4d3e-9bba-3c4f432f04f2","block_type":"box","text":"Hightower Securities, Inc.","page_number":4,"box":{"x":520,"y":351,"width":181,"height":12}},{"id":"41b7b0fb-3cba-47d4-aa28-c6daf7b186dd","block_type":"box","text":"Hilltop Securities Inc.","page_number":4,"box":{"x":520,"y":367,"width":152,"height":11}},{"id":"eb9b4f6b-3baf-4ba4-81ff-04603e03b5b1","block_type":"box","text":"HSBC Bank USA, N.A.","page_number":4,"box":{"x":520,"y":382,"width":166,"height":11}},{"id":"035f890e-e54d-4806-9ad3-d46a9dcf910a","block_type":"box","text":"Huntington Securities, Inc.","page_number":4,"box":{"x":520,"y":398,"width":186,"height":11}},{"id":"0f59169e-422a-4bc8-b988-387a14b78e44","block_type":"box","text":"Institutional Cash Distributors, LLC","page_number":4,"box":{"x":520,"y":413,"width":249,"height":11}},{"id":"21f6e0c2-d805-4415-9be8-1e7b3926990d","block_type":"box","text":"Integrity Life Insurance Company","page_number":4,"box":{"x":520,"y":429,"width":234,"height":11}},{"id":"80af62f9-4342-4391-b346-864df491ca2e","block_type":"box","text":"Interactive Brokers, LLC","page_number":4,"box":{"x":520,"y":444,"width":174,"height":11}},{"id":"92d2e13e-682f-4390-aa15-71b64c6fc9bb","block_type":"box","text":"Investment Trust of California","page_number":4,"box":{"x":520,"y":460,"width":209,"height":9}},{"id":"3f8b7dc6-15d0-47d6-b3d1-b74444900e80","block_type":"box","text":"J.P. Morgan Institutional Investments Inc.","page_number":4,"box":{"x":520,"y":475,"width":287,"height":12}},{"id":"8120a7cf-6378-4456-ac8c-62c71280eb01","block_type":"box","text":"J.P. Morgan Securities LLC","page_number":4,"box":{"x":520,"y":491,"width":193,"height":11}},{"id":"f2c4674f-6d8c-416e-bc51-5683dd8a29d2","block_type":"box","text":"Jefferies LLC","page_number":4,"box":{"x":520,"y":506,"width":97,"height":9}},{"id":"c4c243e9-966c-4647-a1b8-6585cc00c03f","block_type":"box","text":"Jefferson National Life Insurance Company","page_number":4,"box":{"x":520,"y":522,"width":300,"height":11}},{"id":"860ab492-fe90-478a-b77e-623fe350ca43","block_type":"box","text":"Jefferson National Life Insurance Company of","page_number":4,"box":{"x":520,"y":537,"width":318,"height":12}},{"id":"41507e08-4f03-4be1-9278-ab8d93f3c37a","block_type":"box","text":"New York","page_number":4,"box":{"x":520,"y":553,"width":74,"height":9}},{"id":"24286c82-1dd9-4e8f-8f62-40d9087038bb","block_type":"box","text":"John Hancock Life Insurance Company (U.S.A.)","page_number":4,"box":{"x":520,"y":568,"width":333,"height":12}},{"id":"17ae13a5-432e-46cd-bda6-ffedee04bedf","block_type":"box","text":"John Hancock Life Insurance Company of New York","page_number":4,"box":{"x":520,"y":584,"width":365,"height":11}},{"id":"6a624e4b-8a45-4681-91b4-e72e04ba1947","block_type":"box","text":"John Hancock Trust Company","page_number":4,"box":{"x":520,"y":599,"width":209,"height":12}},{"id":"c37a7438-7b0c-4b0c-875b-42a13f86411a","block_type":"box","text":"JPMorgan Chase Bank, N.A.","page_number":4,"box":{"x":520,"y":615,"width":199,"height":11}},{"id":"d88f33c6-69d2-4952-ad88-c9a3c26b66e0","block_type":"box","text":"Kestra Investment Services, LLC","page_number":4,"box":{"x":520,"y":630,"width":229,"height":11}},{"id":"8f52dba4-e81b-4cbe-8d40-528f274a4b5e","block_type":"box","text":"Lincoln Financial Advisors Corporation","page_number":4,"box":{"x":520,"y":646,"width":274,"height":11}},{"id":"5553e88d-70f8-4362-8d90-520996bf002f","block_type":"box","text":"Lincoln Financial Securities Corporation","page_number":4,"box":{"x":520,"y":661,"width":275,"height":12}},{"id":"24e8dc7e-e749-40cf-9ea4-a6601b983961","block_type":"box","text":"Lincoln Life & Annuity Company of New York","page_number":4,"box":{"x":520,"y":677,"width":324,"height":11}},{"id":"4e5065f3-6ee9-4b0f-b75e-a25b7e591796","block_type":"box","text":"Lincoln National Life Insurance Company","page_number":4,"box":{"x":520,"y":692,"width":286,"height":12}},{"id":"5d4cdbaa-8d54-4bf5-b2ae-361b89445256","block_type":"box","text":"Lincoln Retirement Services LLC","page_number":4,"box":{"x":520,"y":708,"width":228,"height":9}},{"id":"cc033008-1b22-4546-9246-61b9ca93cec7","block_type":"box","text":"Lombard International Life Assurance Company","page_number":4,"box":{"x":520,"y":723,"width":328,"height":12}},{"id":"c252db07-b5b5-459f-b337-2cea393a845d","block_type":"box","text":"LPL Financial LLC","page_number":4,"box":{"x":520,"y":739,"width":132,"height":9}},{"id":"7d8b6b09-75d6-43e8-815b-ce2eb40909d8","block_type":"box","text":"M&T Securities Inc.","page_number":4,"box":{"x":520,"y":754,"width":138,"height":9}},{"id":"4bb09855-4eb3-4344-aeed-5cd5e88ec8eb","block_type":"box","text":"Manufacturers and Traders Trust Company","page_number":4,"box":{"x":520,"y":770,"width":291,"height":11}},{"id":"14383609-5b52-48a5-8a56-abcacce4a936","block_type":"box","text":"Massachusetts Mutual Life Insurance Company","page_number":4,"box":{"x":520,"y":785,"width":321,"height":12}},{"id":"adc055c3-e47f-48c5-9a17-8a24b93fc117","block_type":"box","text":"Members Life Insurance Company","page_number":4,"box":{"x":520,"y":801,"width":235,"height":11}},{"id":"a47db16e-7527-4a40-b351-8fc0ac497088","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith Incorporated","page_number":4,"box":{"x":520,"y":816,"width":353,"height":12}},{"id":"ae0fac77-1815-4876-8d60-fc579b8bb5f8","block_type":"box","text":"Metavante Corporation","page_number":4,"box":{"x":520,"y":832,"width":161,"height":11}},{"id":"15f2d531-f7d7-45e4-8207-d421c8e26d12","block_type":"box","text":"Metropolitan Life Insurance Company","page_number":4,"box":{"x":520,"y":847,"width":264,"height":12}},{"id":"5891d12d-2776-4f62-9284-430100f97340","block_type":"box","text":"Mid Atlantic Clearing & Settlement Corporation","page_number":4,"box":{"x":520,"y":863,"width":332,"height":11}},{"id":"83bedde3-2777-4d03-a5ca-05382bbc7b42","block_type":"box","text":"Midland Life Insurance Company","page_number":4,"box":{"x":520,"y":878,"width":233,"height":12}},{"id":"8599d770-a812-486b-82a4-2d5eb79485b7","block_type":"box","text":"2","page_number":4,"box":{"x":496,"y":909,"width":7,"height":9}},{"id":"fd9060f1-44c9-4409-9173-9ded5d95abb9","block_type":"box","text":"NM1026U-5982643-4/241","page_number":4,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"fe9f68c0-cbd7-4620-aa0c-aecf7ddb50f6","block_type":"box","text":"Minnesota Life Insurance Company","page_number":5,"box":{"x":116,"y":88,"width":247,"height":11}},{"id":"941bc6ca-c969-425e-b677-9cb582c5d91a","block_type":"box","text":"Mischler Financial Group","page_number":5,"box":{"x":116,"y":103,"width":178,"height":12}},{"id":"147f0906-ccb1-4ea0-9860-da834e6a736d","block_type":"box","text":"Mizuho Securities USA Inc.","page_number":5,"box":{"x":116,"y":119,"width":195,"height":9}},{"id":"86d04b49-ba9b-415d-a5f7-401365f3eb38","block_type":"box","text":"MML Distributors, LLC","page_number":5,"box":{"x":116,"y":134,"width":169,"height":11}},{"id":"07987b15-9fbb-461a-83ce-5fdcde38e5a7","block_type":"box","text":"MML Investors Services, LLC","page_number":5,"box":{"x":116,"y":150,"width":212,"height":10}},{"id":"6427b7ab-dc65-4eaf-85ee-7180620bb6af","block_type":"box","text":"Morgan Stanley & Co. LLC","page_number":5,"box":{"x":116,"y":165,"width":193,"height":12}},{"id":"026851a6-7424-4098-8b50-08d1bc9c713a","block_type":"box","text":"Morgan Stanley Distribution, Inc.","page_number":5,"box":{"x":116,"y":181,"width":232,"height":11}},{"id":"2241246b-4a6f-4c35-bcb9-08b574e94163","block_type":"box","text":"Morgan Stanley Smith Barney LLC","page_number":5,"box":{"x":116,"y":196,"width":245,"height":12}},{"id":"72d34d0b-039f-4542-b443-95d2486b6615","block_type":"box","text":"MUFG Union Bank, National Association","page_number":5,"box":{"x":116,"y":212,"width":289,"height":10}},{"id":"b5796678-7ab4-4419-a873-9c2fd96c097c","block_type":"box","text":"Nassau Life Insurance Company","page_number":5,"box":{"x":116,"y":227,"width":224,"height":12}},{"id":"1c032a42-058f-4948-91b0-39d1055b56b4","block_type":"box","text":"National Financial Services LLC","page_number":5,"box":{"x":116,"y":243,"width":226,"height":9}},{"id":"79399710-a2da-4808-8e85-8fce1644c8f3","block_type":"box","text":"National Integrity Life Insurance Company","page_number":5,"box":{"x":116,"y":258,"width":296,"height":12}},{"id":"dc36b104-69f3-457a-8a1f-f2469eb36048","block_type":"box","text":"National Life Insurance Company","page_number":5,"box":{"x":116,"y":274,"width":234,"height":11}},{"id":"db697617-77ef-497b-84de-a590847ebbdb","block_type":"box","text":"Nationwide Financial Services, Inc.","page_number":5,"box":{"x":116,"y":289,"width":245,"height":11}},{"id":"af128c96-1f85-4cae-9561-bb57b3e4880c","block_type":"box","text":"Nationwide Fund Distributors LLC","page_number":5,"box":{"x":116,"y":305,"width":242,"height":9}},{"id":"5282e121-3958-4d3d-b351-758b8740aede","block_type":"box","text":"Nationwide Retirement Solutions","page_number":5,"box":{"x":116,"y":320,"width":230,"height":9}},{"id":"55ea940f-e593-4495-b112-3e66fa1bcdd4","block_type":"box","text":"NCB Federal Savings Bank","page_number":5,"box":{"x":116,"y":336,"width":191,"height":11}},{"id":"8217c906-3e4d-40da-b9a5-5ebf0f3ce45f","block_type":"box","text":"New England Pension Plan Systems, LLC","page_number":5,"box":{"x":116,"y":351,"width":288,"height":12}},{"id":"ccfa862e-684a-41b0-bd0d-f81fe917d6ca","block_type":"box","text":"New York Life Insurance and Annuity Corporation","page_number":5,"box":{"x":116,"y":367,"width":350,"height":11}},{"id":"7c47f9a3-0165-49f9-b75c-ef7499aa643d","block_type":"box","text":"Newport Retirement Services, Inc.","page_number":5,"box":{"x":116,"y":382,"width":237,"height":12}},{"id":"391806f4-d18e-45a8-9c6b-4e14480c1e36","block_type":"box","text":"Northbrook Bank & Trust Company","page_number":5,"box":{"x":116,"y":398,"width":249,"height":11}},{"id":"e48f3c0d-faff-4aad-bd9a-27353c32ee32","block_type":"box","text":"Northern Trust Company","page_number":5,"box":{"x":116,"y":413,"width":174,"height":12}},{"id":"72530e64-56cc-4bfe-9fa0-73643641ddca","block_type":"box","text":"Northwestern Mutual Investment Services, LLC","page_number":5,"box":{"x":116,"y":429,"width":329,"height":10}},{"id":"21a5a4d3-e678-4bd9-a638-d37eba27e1a1","block_type":"box","text":"Northwestern Mutual Life Insurance Company","page_number":5,"box":{"x":116,"y":444,"width":320,"height":12}},{"id":"95f32b6e-e075-41c5-a671-4879181c3bf2","block_type":"box","text":"NYLife Distributors LLC","page_number":5,"box":{"x":116,"y":460,"width":177,"height":9}},{"id":"eeeef676-7051-479b-b94e-bb57ff9a86cd","block_type":"box","text":"Oppenheimer & Co., Inc.","page_number":5,"box":{"x":116,"y":475,"width":175,"height":12}},{"id":"6e000339-f2fb-455a-af83-f1b417ec6b4d","block_type":"box","text":"Orion Advisor Services, LLC","page_number":5,"box":{"x":116,"y":491,"width":203,"height":10}},{"id":"d78f4c27-3924-4384-933e-4b2d8649e920","block_type":"box","text":"Osaic Wealth, Inc.","page_number":5,"box":{"x":116,"y":506,"width":129,"height":11}},{"id":"e564055d-fdf4-48af-ae03-162561448ca1","block_type":"box","text":"Pacific Life & Annuity Company","page_number":5,"box":{"x":116,"y":522,"width":230,"height":11}},{"id":"f9f2687e-6aa0-4053-86a7-64cebe4fffc5","block_type":"box","text":"Pacific Life Insurance Company","page_number":5,"box":{"x":116,"y":537,"width":223,"height":12}},{"id":"06d1128b-ab9f-4b03-9f88-0b567d717306","block_type":"box","text":"Pacific Select Distributors, LLC","page_number":5,"box":{"x":116,"y":553,"width":221,"height":10}},{"id":"fe4a8fd5-99d4-4a2c-8625-0228abc176a3","block_type":"box","text":"Park Avenue Securities LLC","page_number":5,"box":{"x":116,"y":568,"width":198,"height":9}},{"id":"0e54510c-324a-4f33-836e-c5ad3fa60bdd","block_type":"box","text":"Penserra Securities LLC","page_number":5,"box":{"x":116,"y":584,"width":169,"height":9}},{"id":"0b4d95d7-9b10-4cef-b0d6-6f5c55f85a4e","block_type":"box","text":"Pershing LLC","page_number":5,"box":{"x":116,"y":599,"width":99,"height":12}},{"id":"7a512076-5e6c-43d8-ac35-26928a6983f7","block_type":"box","text":"PFPC Inc.","page_number":5,"box":{"x":116,"y":615,"width":73,"height":9}},{"id":"8f5f31bd-b44f-4a94-8195-24347c6f9c5e","block_type":"box","text":"Piper Jaffray & Co.","page_number":5,"box":{"x":116,"y":630,"width":136,"height":12}},{"id":"4e31af03-d484-4fa1-b7a2-fd0c3593c217","block_type":"box","text":"PNC Bank, National Association","page_number":5,"box":{"x":116,"y":646,"width":226,"height":10}},{"id":"450f128a-acfb-4b4a-9cc8-f42fe74bc87b","block_type":"box","text":"PNC Capital Markets LLC","page_number":5,"box":{"x":116,"y":661,"width":180,"height":12}},{"id":"fa7f003f-e247-40cd-807d-3dfe4fd965cf","block_type":"box","text":"PNC Investments LLC","page_number":5,"box":{"x":116,"y":677,"width":154,"height":9}},{"id":"4368e96b-534d-4d40-8d91-df316c46db11","block_type":"box","text":"Principal Bank","page_number":5,"box":{"x":116,"y":692,"width":100,"height":12}},{"id":"42023667-4aa2-4fef-a673-2823fccd3444","block_type":"box","text":"Principal Life Insurance Company","page_number":5,"box":{"x":116,"y":708,"width":232,"height":11}},{"id":"a9d6ed93-40df-43a0-8475-88bad7f3a91e","block_type":"box","text":"Protective Life and Annuity Insurance Company","page_number":5,"box":{"x":116,"y":723,"width":327,"height":12}},{"id":"8a284f93-8cba-44dd-aaf2-6a19622daae2","block_type":"box","text":"Protective Life Insurance Company","page_number":5,"box":{"x":116,"y":739,"width":239,"height":11}},{"id":"6a2b89e7-cad0-4e83-956a-e8144f37e5b5","block_type":"box","text":"Pruco Life Insurance Company","page_number":5,"box":{"x":116,"y":754,"width":210,"height":12}},{"id":"c7ab1665-864e-4e80-82d0-c9b28e1213c8","block_type":"box","text":"Pruco Life Insurance Company of New Jersey","page_number":5,"box":{"x":116,"y":770,"width":311,"height":11}},{"id":"50e444cb-57e3-4982-826e-b66586dd8edd","block_type":"box","text":"Prudential Annuities Distributors, Inc.","page_number":5,"box":{"x":116,"y":785,"width":257,"height":11}},{"id":"71d45c99-0b26-41ff-b1b6-a60e88108c91","block_type":"box","text":"Prudential Insurance Company of America","page_number":5,"box":{"x":116,"y":801,"width":289,"height":11}},{"id":"542725be-8d71-4640-98b3-c5d1c2e962c9","block_type":"box","text":"Raymond James & Associates, Inc.","page_number":5,"box":{"x":116,"y":816,"width":237,"height":12}},{"id":"9e932be0-5292-4054-aa18-943372bb4fbf","block_type":"box","text":"Raymond James Financial Services, Inc.","page_number":5,"box":{"x":116,"y":832,"width":277,"height":11}},{"id":"c066a4c0-47be-4b79-ae39-dc6d0a701ff9","block_type":"box","text":"RBC Capital Markets, LLC","page_number":5,"box":{"x":116,"y":847,"width":190,"height":12}},{"id":"c5231f5a-365b-435e-a934-d23dc546f865","block_type":"box","text":"Regions Bank","page_number":5,"box":{"x":116,"y":863,"width":99,"height":11}},{"id":"03f930b0-8d91-4173-8f69-5877c821dea0","block_type":"box","text":"Reliance Trust Company","page_number":5,"box":{"x":116,"y":878,"width":172,"height":12}},{"id":"9abca96d-969a-482b-bd6a-f0d2509e96ff","block_type":"box","text":"Reliastar Life Insurance Company","page_number":5,"box":{"x":520,"y":88,"width":236,"height":11}},{"id":"cea177c5-599f-406c-ba72-290745b359ca","block_type":"box","text":"Reliastar Life Insurance Company of New York","page_number":5,"box":{"x":520,"y":103,"width":329,"height":12}},{"id":"7b16de25-8f5b-4f74-9e1b-632202ec5605","block_type":"box","text":"RiverSource Distributors, Inc.","page_number":5,"box":{"x":520,"y":119,"width":207,"height":10}},{"id":"64754e72-3982-443c-8f9c-359dccd443aa","block_type":"box","text":"RiverSource Life Insurance Co. of New York","page_number":5,"box":{"x":520,"y":134,"width":311,"height":9}},{"id":"d2b0b8cb-d1dd-47f1-b02f-b49f75a93887","block_type":"box","text":"RiverSource Life Insurance Company","page_number":5,"box":{"x":520,"y":150,"width":260,"height":11}},{"id":"6d87d67d-6596-425a-881e-ac3ddf51b6cd","block_type":"box","text":"SagePoint Financial, Inc.","page_number":5,"box":{"x":520,"y":165,"width":173,"height":12}},{"id":"89756203-28c2-487a-8d5a-c0cccdb631a3","block_type":"box","text":"Sammons Retirement Solutions, Inc.","page_number":5,"box":{"x":520,"y":181,"width":252,"height":10}},{"id":"9da15589-0faf-4ee8-800b-4d2b26cbddf5","block_type":"box","text":"Sanctuary Wealth Group, LLC","page_number":5,"box":{"x":520,"y":196,"width":212,"height":12}},{"id":"98e90b32-0736-4094-9d3f-cfac626903bb","block_type":"box","text":"Santander Bank, N.A.","page_number":5,"box":{"x":520,"y":212,"width":152,"height":10}},{"id":"e1a11d06-b534-49ce-9f6d-c1a4317bb3be","block_type":"box","text":"Saturna Trust Company","page_number":5,"box":{"x":520,"y":227,"width":165,"height":12}},{"id":"307a9d3e-7c98-4aa4-aba8-f6d07c3e24bd","block_type":"box","text":"Securities America, Inc.","page_number":5,"box":{"x":520,"y":243,"width":167,"height":10}},{"id":"c84d5d30-fe48-4857-9e8b-1c55a4f4cddc","block_type":"box","text":"Securities Finance Trust Company","page_number":5,"box":{"x":520,"y":258,"width":238,"height":12}},{"id":"e823d095-7a2b-4474-9b5f-7b75623f8bd3","block_type":"box","text":"Security Benefit Life Insurance Company","page_number":5,"box":{"x":520,"y":274,"width":286,"height":11}},{"id":"87ec1040-6874-46c7-8527-9a930159df2b","block_type":"box","text":"Security Financial Resources, Inc.","page_number":5,"box":{"x":520,"y":289,"width":235,"height":12}},{"id":"bc897ee8-0809-4ce0-aa55-6da3640aa4d3","block_type":"box","text":"Security Life of Denver Insurance Company","page_number":5,"box":{"x":520,"y":305,"width":304,"height":11}},{"id":"888a81e6-11eb-4e5b-aa87-95ccb648ab8a","block_type":"box","text":"SEI Private Trust Company","page_number":5,"box":{"x":520,"y":320,"width":191,"height":12}},{"id":"b5efbbd8-4104-44f4-9020-29927af016cb","block_type":"box","text":"SG Americas Securities, LLC","page_number":5,"box":{"x":520,"y":336,"width":205,"height":10}},{"id":"d0998439-6b9a-4966-90f3-17ee97b23487","block_type":"box","text":"Silicon Valley Bank","page_number":5,"box":{"x":520,"y":351,"width":141,"height":12}},{"id":"ef19e598-f748-43e4-825e-7f61b9b351ea","block_type":"box","text":"Standard Insurance Company","page_number":5,"box":{"x":520,"y":367,"width":203,"height":11}},{"id":"77fa36c0-b0f9-43cb-b569-304e79f12476","block_type":"box","text":"State Farm Life and Accident Assurance Company","page_number":5,"box":{"x":520,"y":382,"width":347,"height":12}},{"id":"7ec2e2f9-4b88-4cb6-bd22-93b6013123fc","block_type":"box","text":"State Farm Life Insurance Company","page_number":5,"box":{"x":520,"y":398,"width":249,"height":11}},{"id":"c5be8b60-ecbf-4117-871f-4d8b550ab259","block_type":"box","text":"State Farm VP Management Corp.","page_number":5,"box":{"x":520,"y":413,"width":237,"height":12}},{"id":"0bd06e8f-d54f-43c3-a60b-348826435909","block_type":"box","text":"State Street Bank and Trust Company","page_number":5,"box":{"x":520,"y":429,"width":259,"height":11}},{"id":"23a50ed3-afe4-42bd-828d-8636c37bc50f","block_type":"box","text":"State Street Global Markets, LLC","page_number":5,"box":{"x":520,"y":444,"width":231,"height":11}},{"id":"ac967ad4-4108-481c-8d35-9ff0702c7e30","block_type":"box","text":"Stern Brothers & Co.","page_number":5,"box":{"x":520,"y":460,"width":147,"height":9}},{"id":"490b0bfa-e526-4ae9-a299-2123a7da719e","block_type":"box","text":"Stifel, Nicolaus & Company, Incorporated","page_number":5,"box":{"x":520,"y":475,"width":290,"height":12}},{"id":"96b735a0-baa7-47ba-9b3f-01e660ed422d","block_type":"box","text":"Summit Brokerage Services, Inc.","page_number":5,"box":{"x":520,"y":491,"width":227,"height":11}},{"id":"7214fadc-130c-4c10-b227-1ed622a01d44","block_type":"box","text":"SVB Asset Management","page_number":5,"box":{"x":520,"y":506,"width":170,"height":12}},{"id":"f36371ac-08ae-414a-8a58-ff1cffb80f20","block_type":"box","text":"Symetra Life Insurance Company","page_number":5,"box":{"x":520,"y":522,"width":232,"height":11}},{"id":"dec28345-4ac5-4c32-af81-11d052e4c8de","block_type":"box","text":"Syntal Capital Partners, LLC","page_number":5,"box":{"x":520,"y":537,"width":200,"height":12}},{"id":"6d85d58a-970b-41ab-b911-21ca0aace583","block_type":"box","text":"T. Rowe Price Retirement Plan Services, Inc.","page_number":5,"box":{"x":520,"y":553,"width":310,"height":10}},{"id":"cb397713-c98d-42a9-b366-46995f1e0f0e","block_type":"box","text":"Talcott Resolution Life and Annuity Insurance","page_number":5,"box":{"x":520,"y":568,"width":319,"height":12}},{"id":"3fa53b32-4626-476b-b838-ba3194eaa5f5","block_type":"box","text":"Company","page_number":5,"box":{"x":520,"y":584,"width":69,"height":11}},{"id":"64bd9774-fe82-4f01-ab01-354cde2fd9ac","block_type":"box","text":"Talcott Resolution Life Insurance Company","page_number":5,"box":{"x":520,"y":599,"width":301,"height":12}},{"id":"7c2f72c0-308a-4ca1-90a2-9d458759ab10","block_type":"box","text":"TD Ameritrade Clearing, Inc.","page_number":5,"box":{"x":520,"y":615,"width":204,"height":11}},{"id":"7e1b704d-49b8-45b2-99c9-f40d94f2ff6d","block_type":"box","text":"TD Ameritrade, Inc.","page_number":5,"box":{"x":520,"y":630,"width":141,"height":11}},{"id":"2069611d-3b1c-473d-8ee2-b21a6130853f","block_type":"box","text":"TD Prime Services (US) LLC","page_number":5,"box":{"x":520,"y":646,"width":205,"height":11}},{"id":"70b3d736-6b79-4be6-8a92-51b6c1cf74e3","block_type":"box","text":"Teachers Insurance and Annuity Association of","page_number":5,"box":{"x":520,"y":661,"width":321,"height":12}},{"id":"c564c6f8-e639-4ad8-ab0e-3134c0e94493","block_type":"box","text":"America","page_number":5,"box":{"x":520,"y":677,"width":58,"height":9}},{"id":"253d28db-6a27-436d-b890-9d17111e4a7c","block_type":"box","text":"Tigress Financial Partners, LLC","page_number":5,"box":{"x":520,"y":692,"width":216,"height":12}},{"id":"ba50898f-e7e2-4ed7-89fe-e513cc22c0f7","block_type":"box","text":"Transamerica Financial Life Insurance Company","page_number":5,"box":{"x":520,"y":708,"width":330,"height":11}},{"id":"b768210d-f7f9-484a-b8cf-f997fc6d6660","block_type":"box","text":"Transamerica Life Insurance Company","page_number":5,"box":{"x":520,"y":723,"width":263,"height":12}},{"id":"4fbc62bf-78cd-4c11-958b-e108baf8cb60","block_type":"box","text":"Treasury Brokerage","page_number":5,"box":{"x":520,"y":739,"width":134,"height":11}},{"id":"fbbd9fa9-f352-4fb7-991a-73d4e9694b26","block_type":"box","text":"Triad Advisors, LLC","page_number":5,"box":{"x":520,"y":754,"width":141,"height":11}},{"id":"71560659-73bf-490f-953e-a1f6a7a489f5","block_type":"box","text":"Truist Bank","page_number":5,"box":{"x":520,"y":770,"width":80,"height":9}},{"id":"76c10553-17d0-4c92-b36a-cfd7e6644886","block_type":"box","text":"U.S. Bancorp Investments, Inc.","page_number":5,"box":{"x":520,"y":785,"width":210,"height":12}},{"id":"4a910b4c-29b2-43b2-9ec2-7bbfa4bbcea7","block_type":"box","text":"U.S. Bank, National Association","page_number":5,"box":{"x":520,"y":801,"width":219,"height":10}},{"id":"4f8896b2-818f-4e89-ab60-46bd9e9ee92c","block_type":"box","text":"UBATCO & Co.","page_number":5,"box":{"x":520,"y":816,"width":113,"height":9}},{"id":"7a5e363f-91cc-4a18-b423-c8057ba69def","block_type":"box","text":"UBS Financial Services, Inc.","page_number":5,"box":{"x":520,"y":832,"width":199,"height":10}},{"id":"989c1326-975b-496c-ba7b-b100f0a1373d","block_type":"box","text":"UBS Securities LLC","page_number":5,"box":{"x":520,"y":847,"width":143,"height":9}},{"id":"a1af8fee-03b6-4015-ac58-1d343caaf4ba","block_type":"box","text":"Ultimus Fund Solutions, LLC","page_number":5,"box":{"x":520,"y":863,"width":205,"height":10}},{"id":"5281ef74-f1c8-4b63-ae5f-0214ac149244","block_type":"box","text":"UMB Bank, National Association","page_number":5,"box":{"x":520,"y":878,"width":232,"height":11}},{"id":"c0afdb84-9775-4f09-9433-40b779b54e5a","block_type":"box","text":"3","page_number":5,"box":{"x":496,"y":909,"width":7,"height":9}},{"id":"799ca0da-cb43-431b-96fc-73a01c2f01e8","block_type":"box","text":"NM1026U-5982643-5/241","page_number":5,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"c1b07548-9084-4748-9f3f-0b5defcb0cf0","block_type":"box","text":"United States Life Insurance Company in the City of","page_number":6,"box":{"x":116,"y":88,"width":360,"height":11}},{"id":"d3dabfff-6847-4f21-8797-f0cdf39ad55f","block_type":"box","text":"New York","page_number":6,"box":{"x":116,"y":103,"width":74,"height":9}},{"id":"9d5551ff-e8ea-40df-961e-6fd08d51e70c","block_type":"box","text":"VALIC Retirement Services Company","page_number":6,"box":{"x":116,"y":119,"width":265,"height":11}},{"id":"c53eef76-b8b4-47d0-9852-2b76b986a449","block_type":"box","text":"Vanguard Group, Inc.","page_number":6,"box":{"x":116,"y":134,"width":152,"height":12}},{"id":"8ca13ce4-f639-4904-81e4-f612189c07e6","block_type":"box","text":"Vanguard Marketing Corporation","page_number":6,"box":{"x":116,"y":150,"width":230,"height":11}},{"id":"ad18fefa-1593-47bb-88c2-2288b876a4e2","block_type":"box","text":"Voya Financial Advisors, Inc.","page_number":6,"box":{"x":116,"y":165,"width":207,"height":12}},{"id":"b436c379-387a-499e-9e2b-70cb08438375","block_type":"box","text":"Voya Financial Partners, LLC","page_number":6,"box":{"x":116,"y":181,"width":207,"height":11}},{"id":"91c7b992-0ee4-4be2-9100-e57583f8609b","block_type":"box","text":"Voya Institutional Plan Services, LLC","page_number":6,"box":{"x":116,"y":196,"width":262,"height":12}},{"id":"d36adf6a-dd29-42fa-9654-1ded1bfaa00f","block_type":"box","text":"Voya Insurance and Annuity Company","page_number":6,"box":{"x":116,"y":212,"width":268,"height":11}},{"id":"5c563164-30b9-4622-a546-4763ddb1b887","block_type":"box","text":"Voya Investments Distributor, LLC","page_number":6,"box":{"x":116,"y":227,"width":245,"height":12}},{"id":"464b2399-5edd-4da0-b8b1-00b3d0d250bc","block_type":"box","text":"Voya Retirement Insurance and Annuity Company","page_number":6,"box":{"x":116,"y":243,"width":347,"height":11}},{"id":"d7ccf1ac-9f86-4326-8d2c-90d75e820558","block_type":"box","text":"Waddell & Reed, Inc.","page_number":6,"box":{"x":520,"y":88,"width":151,"height":10}},{"id":"2719a4eb-72e2-45d3-8a31-5b5658fe6749","block_type":"box","text":"Wells Fargo Advisors, LLC","page_number":6,"box":{"x":520,"y":103,"width":192,"height":12}},{"id":"45b0d1bf-ab5c-4e2a-9614-8b9b7c8bad7a","block_type":"box","text":"Wells Fargo Advisors Financial Network, LLC","page_number":6,"box":{"x":520,"y":119,"width":322,"height":11}},{"id":"a935509f-d9d7-4f74-918a-2ae8fe3e7f35","block_type":"box","text":"Wells Fargo Bank, N.A.","page_number":6,"box":{"x":520,"y":134,"width":168,"height":12}},{"id":"00db89c0-9521-4e4a-a38d-4572c6ed7cfc","block_type":"box","text":"Wells Fargo Clearing Services, LLC","page_number":6,"box":{"x":520,"y":150,"width":251,"height":11}},{"id":"ea0b1cdd-54d2-4655-9f9b-6e9420866f1f","block_type":"box","text":"Wells Fargo Investments, LLC","page_number":6,"box":{"x":520,"y":165,"width":213,"height":12}},{"id":"f64e9608-d5f6-495a-aa0c-015cd2ed3f1e","block_type":"box","text":"Wells Fargo Securities, LLC","page_number":6,"box":{"x":520,"y":181,"width":198,"height":11}},{"id":"3d276377-22be-4115-a318-f3e1b98a1415","block_type":"box","text":"Wilmington Trust, National Association","page_number":6,"box":{"x":520,"y":196,"width":275,"height":12}},{"id":"5fba2062-f66b-4a15-9000-60a8582edff8","block_type":"box","text":"Woodbury Financial Services, Inc.","page_number":6,"box":{"x":520,"y":212,"width":238,"height":11}},{"id":"f953d691-768d-463c-86a1-3f21db4539eb","block_type":"box","text":"ZB, National Association","page_number":6,"box":{"x":520,"y":227,"width":176,"height":11}},{"id":"5cecd600-ab72-4ce9-9842-2168ef49ecbd","block_type":"box","text":"4","page_number":6,"box":{"x":495,"y":909,"width":8,"height":9}},{"id":"ac08e57e-0436-4c44-bead-768902831b69","block_type":"box","text":"NM1026U-5982643-6/241","page_number":6,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"032fb3d9-891a-45a5-a915-318e2dba27f2","block_type":"box","text":"Appendix A","page_number":7,"box":{"x":456,"y":87,"width":91,"height":12}},{"id":"302024b1-4817-4864-bfd6-a3fa1706c92b","block_type":"box","text":"BlackRock Advantage Global Fund, Inc.","page_number":7,"box":{"x":116,"y":118,"width":296,"height":12}},{"id":"a7d6c640-dcad-4f11-9b3a-6c09936a0df0","block_type":"box","text":"BlackRock Advantage SMID Cap Fund, Inc.","page_number":7,"box":{"x":116,"y":149,"width":325,"height":12}},{"id":"ebfd7cfc-8064-4de6-9751-288cb3373d72","block_type":"box","text":"BlackRock Allocation Target Shares","page_number":7,"box":{"x":116,"y":180,"width":266,"height":12}},{"id":"d90c33ae-d52d-48c7-ad57-6c4039d045a2","block_type":"box","text":"BATS: Securitized Total Return Series","page_number":7,"box":{"x":133,"y":196,"width":267,"height":9}},{"id":"92e357ef-53d3-4567-b773-105aa6bd3903","block_type":"box","text":"BATS: Corporate Credit Total Return Series","page_number":7,"box":{"x":133,"y":212,"width":305,"height":11}},{"id":"a13e7e07-30df-49e0-ba70-73c64ce20244","block_type":"box","text":"BATS: High Income Municipal Series","page_number":7,"box":{"x":133,"y":227,"width":263,"height":12}},{"id":"d724783d-7849-49b1-bfa4-918ff77abe64","block_type":"box","text":"BATS: High Income Taxable Series","page_number":7,"box":{"x":133,"y":243,"width":248,"height":11}},{"id":"206c460e-3c49-4612-ab57-33762b0a224e","block_type":"box","text":"BATS: Mortgage Total Return Series","page_number":7,"box":{"x":133,"y":258,"width":256,"height":12}},{"id":"885f3818-9413-488c-8df6-7d2f6d3cd71d","block_type":"box","text":"BATS: Interest Rate Hedge Series","page_number":7,"box":{"x":133,"y":274,"width":235,"height":11}},{"id":"ff1b66af-486d-42ff-8cd1-ed1907bb8238","block_type":"box","text":"BATS: Short Duration Taxable Total Return Series","page_number":7,"box":{"x":133,"y":289,"width":350,"height":9}},{"id":"5b909fe7-97b6-4de2-98ac-8f74e5600f84","block_type":"box","text":"BATS: Short Term Municipal Income Series","page_number":7,"box":{"x":133,"y":305,"width":307,"height":11}},{"id":"cc590931-b746-426a-a40d-21fb7f337b90","block_type":"box","text":"BlackRock Balanced Fund, Inc.","page_number":7,"box":{"x":116,"y":336,"width":232,"height":11}},{"id":"adb0815d-1d68-4ae7-8d04-d7e3bd11b4e3","block_type":"box","text":"BlackRock Bond Fund, Inc.","page_number":7,"box":{"x":116,"y":367,"width":203,"height":11}},{"id":"dd040ad0-e56a-4419-9ef9-1490fb0919a6","block_type":"box","text":"BlackRock Total Return Fund","page_number":7,"box":{"x":133,"y":382,"width":207,"height":9}},{"id":"2ad1edc8-bb23-41fa-9666-eec8b0d772b4","block_type":"box","text":"BlackRock California Municipal Series Trust","page_number":7,"box":{"x":116,"y":413,"width":331,"height":12}},{"id":"5c91a16f-8936-4133-92b9-196396b570e0","block_type":"box","text":"BlackRock California Municipal Opportunities","page_number":7,"box":{"x":133,"y":429,"width":322,"height":11}},{"id":"b3899a5e-822e-49a9-88c6-6b864978b5c5","block_type":"box","text":"Fund","page_number":7,"box":{"x":133,"y":444,"width":38,"height":9}},{"id":"bcfb5f52-6360-4106-8774-721b6d165925","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.","page_number":7,"box":{"x":116,"y":475,"width":317,"height":12}},{"id":"6c9cf865-9e9e-46d9-a5f8-63ecace77219","block_type":"box","text":"BlackRock Emerging Markets Fund, Inc.","page_number":7,"box":{"x":116,"y":506,"width":301,"height":12}},{"id":"9ea731fa-d26d-483d-8122-b85c98fe98c5","block_type":"box","text":"BlackRock Equity Dividend Fund","page_number":7,"box":{"x":116,"y":537,"width":248,"height":12}},{"id":"eca55dc8-b070-4d9b-a03c-aa35f826f5d3","block_type":"box","text":"BlackRock Financial Institutions Series Trust","page_number":7,"box":{"x":116,"y":568,"width":332,"height":9}},{"id":"50740b8f-b5a5-4199-a111-517d8630f37e","block_type":"box","text":"BlackRock Summit Cash Reserves Fund","page_number":7,"box":{"x":133,"y":584,"width":278,"height":9}},{"id":"a3f85f4e-d1bf-4f0f-9498-325cf05831b8","block_type":"box","text":"BlackRock Funds","page_number":7,"box":{"x":116,"y":615,"width":127,"height":9}},{"id":"83ca945f-c34b-40f0-b5f5-0fd0e1b62eb4","block_type":"box","text":"SM","page_number":7,"box":{"x":244,"y":614,"width":15,"height":6}},{"id":"627c83ef-b74c-4415-a4ad-ee1c2295dff5","block_type":"box","text":"BlackRock Advantage Emerging Markets Fund","page_number":7,"box":{"x":133,"y":630,"width":325,"height":12}},{"id":"5d6f725d-3416-4187-ab1f-5159b8973933","block_type":"box","text":"BlackRock Advantage International Fund","page_number":7,"box":{"x":133,"y":646,"width":285,"height":11}},{"id":"8cb6bfa9-1400-4007-999a-f9b8b8df34f9","block_type":"box","text":"BlackRock Advantage Large Cap Growth Fund","page_number":7,"box":{"x":133,"y":661,"width":321,"height":12}},{"id":"aca71edf-bb5f-455f-a383-22a03d83a11c","block_type":"box","text":"BlackRock Advantage Small Cap Core Fund","page_number":7,"box":{"x":133,"y":677,"width":302,"height":11}},{"id":"7d858013-fa82-42ba-adb6-6a5f990d42bc","block_type":"box","text":"BlackRock Advantage Small Cap Growth Fund","page_number":7,"box":{"x":133,"y":692,"width":321,"height":12}},{"id":"1c068e03-c406-4739-963e-652b3be64337","block_type":"box","text":"BlackRock China A Opportunities Fund","page_number":7,"box":{"x":133,"y":708,"width":271,"height":11}},{"id":"9f517d5c-b3a5-4d55-be89-673c9f26992a","block_type":"box","text":"BlackRock Commodity Strategies Fund","page_number":7,"box":{"x":133,"y":723,"width":269,"height":12}},{"id":"454644c9-7035-46b4-b3c2-c64ab92b9ae3","block_type":"box","text":"BlackRock Daily Reinvestment Stablecoin","page_number":7,"box":{"x":133,"y":739,"width":288,"height":11}},{"id":"1c588959-414f-4872-84cb-56a93200f30a","block_type":"box","text":"Reserve Vehicle","page_number":7,"box":{"x":133,"y":754,"width":110,"height":9}},{"id":"a4a1ea2a-5602-4563-91bb-db22b14f6e1e","block_type":"box","text":"BlackRock Defensive Advantage Emerging","page_number":7,"box":{"x":133,"y":770,"width":294,"height":11}},{"id":"38fc9125-9d9b-4f9f-9199-245aabe41a40","block_type":"box","text":"Markets Fund","page_number":7,"box":{"x":133,"y":785,"width":93,"height":9}},{"id":"95295dc4-3bc3-4b6b-97c7-362f67b459df","block_type":"box","text":"BlackRock Emerging Markets ex-China Fund","page_number":7,"box":{"x":133,"y":801,"width":309,"height":11}},{"id":"825643f7-793d-45ca-a1fa-7e84d8b90715","block_type":"box","text":"BlackRock Energy Opportunities Fund","page_number":7,"box":{"x":133,"y":816,"width":263,"height":12}},{"id":"b4c44823-7104-4428-b0c4-e972bdb7800f","block_type":"box","text":"BlackRock Exchange Portfolio","page_number":7,"box":{"x":133,"y":832,"width":213,"height":11}},{"id":"2ebaf0a4-89d5-434d-91d6-e195c90445bb","block_type":"box","text":"BlackRock Global Equity Market Neutral Fund","page_number":7,"box":{"x":133,"y":847,"width":324,"height":12}},{"id":"662ac1a7-9741-421f-ac27-a6af0a6a6462","block_type":"box","text":"BlackRock Health Sciences Opportunities","page_number":7,"box":{"x":133,"y":863,"width":288,"height":11}},{"id":"ea185d68-40e0-4152-a9d9-00986ffd7df1","block_type":"box","text":"Portfolio","page_number":7,"box":{"x":133,"y":878,"width":64,"height":9}},{"id":"86d4a0c2-8008-4e64-9882-0aa7f8422254","block_type":"box","text":"BlackRock High Equity Income Fund","page_number":7,"box":{"x":537,"y":119,"width":259,"height":11}},{"id":"6f58e936-acf1-4f38-8bab-22915f8c6caf","block_type":"box","text":"BlackRock Mid-Cap Growth Equity Portfolio","page_number":7,"box":{"x":537,"y":134,"width":313,"height":12}},{"id":"df66f9e5-b628-40de-b2e7-b0273238f656","block_type":"box","text":"BlackRock Real Estate Securities Fund","page_number":7,"box":{"x":537,"y":150,"width":269,"height":9}},{"id":"1e7bef1d-1e28-4d9e-b1cd-60ad63593a54","block_type":"box","text":"BlackRock Short Obligations Fund","page_number":7,"box":{"x":537,"y":165,"width":241,"height":12}},{"id":"42ba45fd-e526-4fbf-9380-403909d5d9ac","block_type":"box","text":"BlackRock Sustainable Aware Advantage","page_number":7,"box":{"x":537,"y":181,"width":287,"height":11}},{"id":"615b5499-4ed7-4947-b895-bacee63749cd","block_type":"box","text":"Emerging Markets Equity Fund","page_number":7,"box":{"x":537,"y":196,"width":218,"height":12}},{"id":"84b6bb47-5f05-4fe7-9b84-2b387e903d80","block_type":"box","text":"BlackRock Sustainable Aware Advantage Large","page_number":7,"box":{"x":537,"y":212,"width":330,"height":11}},{"id":"f4fbd7dc-c192-4aa7-a461-27c641500100","block_type":"box","text":"Cap Core Fund","page_number":7,"box":{"x":537,"y":227,"width":107,"height":12}},{"id":"b2c88de3-483a-486c-9ae2-c36df5903a03","block_type":"box","text":"BlackRock Tactical Opportunities Fund","page_number":7,"box":{"x":537,"y":243,"width":273,"height":11}},{"id":"16852390-5ce4-4fd3-b804-fd4089add6f9","block_type":"box","text":"BlackRock Technology Opportunities Fund","page_number":7,"box":{"x":537,"y":258,"width":299,"height":12}},{"id":"a867a4eb-cb0a-45bc-a7c5-60b64e0494d0","block_type":"box","text":"BlackRock Wealth Liquid Environmentally Aware","page_number":7,"box":{"x":537,"y":274,"width":347,"height":11}},{"id":"3655aea5-1778-44df-9d69-b771b758912c","block_type":"box","text":"Fund","page_number":7,"box":{"x":537,"y":289,"width":38,"height":9}},{"id":"308a70ea-2bbd-4f4f-9c9e-3e2ba943c9e1","block_type":"box","text":"Circle Reserve Fund","page_number":7,"box":{"x":537,"y":305,"width":142,"height":9}},{"id":"9a5d3e54-5a8a-47f3-9703-f4bffa9f1160","block_type":"box","text":"iShares Developed Real Estate Index Fund","page_number":7,"box":{"x":537,"y":320,"width":293,"height":12}},{"id":"59121ac7-9f0d-445e-a41a-ed6ddd4a2a6c","block_type":"box","text":"iShares Enhanced Roll Yield Index Fund","page_number":7,"box":{"x":537,"y":336,"width":280,"height":9}},{"id":"0f79db8b-54ae-4ad2-9fe0-e237d4d2424c","block_type":"box","text":"iShares FTSE NAREIT All Equity REIT Index","page_number":7,"box":{"x":537,"y":351,"width":322,"height":12}},{"id":"d8818dff-4590-47a4-9dff-a2633f985040","block_type":"box","text":"Fund","page_number":7,"box":{"x":537,"y":367,"width":38,"height":9}},{"id":"fac54228-acc3-4d47-8131-572438419f9e","block_type":"box","text":"iShares Municipal Bond Index Fund","page_number":7,"box":{"x":537,"y":382,"width":249,"height":12}},{"id":"cc7fcb0c-0599-4eda-a1ed-ab84d338091d","block_type":"box","text":"iShares Russell Mid-Cap Index Fund","page_number":7,"box":{"x":537,"y":398,"width":254,"height":11}},{"id":"009b3587-e9d1-4770-8197-d4750f350e41","block_type":"box","text":"iShares Russell Small/Mid-Cap Index Fund","page_number":7,"box":{"x":537,"y":413,"width":298,"height":12}},{"id":"f876b560-000c-423f-a868-0a05987598dd","block_type":"box","text":"iShares Short-Term TIPS Bond Index Fund","page_number":7,"box":{"x":537,"y":429,"width":297,"height":9}},{"id":"792f87b9-904a-4303-aec8-2f200da001d8","block_type":"box","text":"iShares Total U.S. Stock Market Index Fund","page_number":7,"box":{"x":537,"y":444,"width":304,"height":9}},{"id":"c3250c1b-78a7-4950-871b-34132dac1531","block_type":"box","text":"iShares U.S. Intermediate Credit Bond Index Fund","page_number":7,"box":{"x":537,"y":460,"width":346,"height":9}},{"id":"df9ee6d6-32a4-49b5-8c43-439cb1ceb123","block_type":"box","text":"iShares U.S. Intermediate Government Bond Index","page_number":7,"box":{"x":537,"y":475,"width":349,"height":9}},{"id":"835821f9-fbb7-4042-a6ac-e958fc7d8e0a","block_type":"box","text":"Fund","page_number":7,"box":{"x":537,"y":491,"width":38,"height":9}},{"id":"d3cd5f81-1485-43ed-a367-e1e328f663d7","block_type":"box","text":"iShares U.S. Long Credit Bond Index Fund","page_number":7,"box":{"x":537,"y":506,"width":296,"height":12}},{"id":"2a07637c-4129-489f-8c80-0aded9694913","block_type":"box","text":"iShares U.S. Long Government Bond Index Fund","page_number":7,"box":{"x":537,"y":522,"width":338,"height":11}},{"id":"139e0845-8fd6-4b0c-8a12-2df09114e67d","block_type":"box","text":"iShares U.S. Securitized Bond Index Fund","page_number":7,"box":{"x":537,"y":537,"width":290,"height":9}},{"id":"1de4c999-bb8b-4bf3-9cf5-b43b657f02dc","block_type":"box","text":"BlackRock Funds II","page_number":7,"box":{"x":520,"y":568,"width":149,"height":9}},{"id":"0100be07-89fd-40e3-8434-992c25b7ee61","block_type":"box","text":"BlackRock 20/80 Target Allocation Fund","page_number":7,"box":{"x":537,"y":584,"width":284,"height":11}},{"id":"40ce4f92-b906-43c8-b751-6665d571a810","block_type":"box","text":"BlackRock 40/60 Target Allocation Fund","page_number":7,"box":{"x":537,"y":599,"width":284,"height":12}},{"id":"a6cdf3f9-1218-46f2-b002-24aff0263ba7","block_type":"box","text":"BlackRock 60/40 Target Allocation Fund","page_number":7,"box":{"x":537,"y":615,"width":284,"height":11}},{"id":"1a1a7015-7991-4bc8-a22e-6e858678f094","block_type":"box","text":"BlackRock 80/20 Target Allocation Fund","page_number":7,"box":{"x":537,"y":630,"width":284,"height":12}},{"id":"dc87b3d9-17f1-40a9-b96e-ff607fe8ceca","block_type":"box","text":"BlackRock Dynamic High Income Portfolio","page_number":7,"box":{"x":537,"y":646,"width":301,"height":11}},{"id":"43d40ebb-b021-4978-958f-46a8dcc448be","block_type":"box","text":"BlackRock Global Dividend Portfolio","page_number":7,"box":{"x":537,"y":661,"width":255,"height":9}},{"id":"668f845f-2d5c-4e4d-919a-dee2e301f536","block_type":"box","text":"BlackRock Managed Income Fund","page_number":7,"box":{"x":537,"y":677,"width":235,"height":11}},{"id":"2c04d8c8-4a1a-40ad-bcab-37ef28b5bf63","block_type":"box","text":"BlackRock Multi-Asset Income Portfolio","page_number":7,"box":{"x":537,"y":692,"width":278,"height":9}},{"id":"462f942e-1600-4a82-bc1f-f98f172df153","block_type":"box","text":"BlackRock Retirement Income 2030 Fund","page_number":7,"box":{"x":537,"y":708,"width":285,"height":9}},{"id":"fad811a8-8574-4f21-85a1-0384002297e9","block_type":"box","text":"BlackRock Funds III","page_number":7,"box":{"x":520,"y":739,"width":151,"height":9}},{"id":"af4b0381-263c-415f-a185-5382b25427e3","block_type":"box","text":"BlackRock Cash Funds: Institutional","page_number":7,"box":{"x":537,"y":754,"width":248,"height":9}},{"id":"bf4dd79c-5fb1-4af5-bb45-c41cff5693dc","block_type":"box","text":"BlackRock Cash Funds: Treasury","page_number":7,"box":{"x":537,"y":770,"width":226,"height":11}},{"id":"a621b60b-5824-4145-9ad0-3a711fe7083e","block_type":"box","text":"BlackRock Diversified Equity Alpha Fund","page_number":7,"box":{"x":537,"y":785,"width":288,"height":12}},{"id":"85e8f0e1-8168-4ece-9779-9d2bf72f31ec","block_type":"box","text":"BlackRock Diversified Fixed Income Fund","page_number":7,"box":{"x":537,"y":801,"width":291,"height":9}},{"id":"cca848dc-638e-4176-9367-d84118d4a8de","block_type":"box","text":"BlackRock LifePath","page_number":7,"box":{"x":537,"y":816,"width":136,"height":9}},{"id":"f41a65f0-ede0-4b41-be87-7fd0b34269e7","block_type":"box","text":"®","page_number":7,"box":{"x":674,"y":815,"width":9,"height":7}},{"id":"9b31e4d6-2874-427c-aa14-a161e70e1053","block_type":"box","text":"Dynamic Retirement Fund","page_number":7,"box":{"x":688,"y":816,"width":179,"height":12}},{"id":"f5f1c7ce-1d46-492e-b67f-24087c02ac9b","block_type":"box","text":"BlackRock LifePath","page_number":7,"box":{"x":537,"y":832,"width":136,"height":9}},{"id":"bc12bba0-c1e7-4bfb-be52-bdcb125d2652","block_type":"box","text":"®","page_number":7,"box":{"x":674,"y":831,"width":9,"height":6}},{"id":"8cc5d6c7-91bf-4e3b-ab13-e32f457bc8ef","block_type":"box","text":"Dynamic 2030 Fund","page_number":7,"box":{"x":683,"y":832,"width":147,"height":11}},{"id":"fba90735-fe69-4e86-bbb7-8984f68835ff","block_type":"box","text":"BlackRock LifePath","page_number":7,"box":{"x":537,"y":847,"width":136,"height":9}},{"id":"944ba675-11cb-4aa9-9d12-3c1b0219324e","block_type":"box","text":"®","page_number":7,"box":{"x":674,"y":846,"width":9,"height":7}},{"id":"d7152260-beed-4755-bbf6-62b01f0c2683","block_type":"box","text":"Dynamic 2035 Fund","page_number":7,"box":{"x":683,"y":847,"width":147,"height":12}},{"id":"d56914e8-2e5a-4614-be53-d0474321941c","block_type":"box","text":"BlackRock LifePath","page_number":7,"box":{"x":537,"y":863,"width":136,"height":9}},{"id":"57e51668-37e6-4f2d-92c0-c0a0a9ba4848","block_type":"box","text":"®","page_number":7,"box":{"x":674,"y":862,"width":9,"height":6}},{"id":"f3b421a6-b8da-4e24-bf6e-39f689c5609b","block_type":"box","text":"Dynamic 2040 Fund","page_number":7,"box":{"x":683,"y":863,"width":147,"height":11}},{"id":"c268c918-a75e-4d75-9179-962d8fed82bd","block_type":"box","text":"BlackRock LifePath","page_number":7,"box":{"x":537,"y":878,"width":136,"height":9}},{"id":"1c80dfe2-b841-4a5b-8085-e670d54fed9c","block_type":"box","text":"®","page_number":7,"box":{"x":674,"y":877,"width":9,"height":7}},{"id":"a50be17e-65cc-4dd0-994a-da33bacf95e7","block_type":"box","text":"Dynamic 2045 Fund","page_number":7,"box":{"x":683,"y":878,"width":147,"height":12}},{"id":"9bdab5a3-f241-424a-b779-7cd83771aa04","block_type":"box","text":"5","page_number":7,"box":{"x":496,"y":909,"width":7,"height":9}},{"id":"bf73d4ae-a526-48ab-8594-911dbd0641f0","block_type":"box","text":"NM1026U-5982643-7/241","page_number":7,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"73c28029-4643-4d43-8ea5-e500882db319","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":88,"width":136,"height":9}},{"id":"59e27218-56eb-4b2e-aa5b-071bbf129c0a","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":87,"width":9,"height":6}},{"id":"4c268f29-aada-4590-b507-b4ab45ae27dc","block_type":"box","text":"Dynamic 2050 Fund","page_number":8,"box":{"x":279,"y":88,"width":147,"height":11}},{"id":"84f52692-6a9c-41bd-b92d-dd2d3f0d1abb","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":103,"width":136,"height":9}},{"id":"0c3fc77e-89c1-41fa-bbbf-f43dde7995c0","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":102,"width":9,"height":7}},{"id":"7153526d-3321-4c0f-953f-8687d2262417","block_type":"box","text":"Dynamic 2055 Fund","page_number":8,"box":{"x":279,"y":103,"width":147,"height":12}},{"id":"37a238bc-e636-48fd-9ca0-506d40ee5053","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":119,"width":136,"height":9}},{"id":"52d508fa-d4dc-4811-ac5d-7c860bc38f1e","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":118,"width":9,"height":6}},{"id":"c52ac2ff-c0a5-4981-a291-bd5c5579df3e","block_type":"box","text":"Dynamic 2060 Fund","page_number":8,"box":{"x":279,"y":119,"width":147,"height":11}},{"id":"f683e1a5-bc6e-470e-adcc-92b51c875f0a","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":134,"width":136,"height":9}},{"id":"6da6aed3-1941-4ed6-8efa-b8231ff756e3","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":133,"width":9,"height":7}},{"id":"1061c5ef-de36-48ee-99d5-facf92b1c988","block_type":"box","text":"Dynamic 2065 Fund","page_number":8,"box":{"x":279,"y":134,"width":147,"height":12}},{"id":"f9f0bc02-c854-41ff-9ece-96f5ed1d4dd4","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":150,"width":136,"height":9}},{"id":"204c5deb-8225-455b-bd99-b014ead7cf66","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":149,"width":9,"height":6}},{"id":"8acc6332-b5c8-4a0a-9540-5ab358cd7ee8","block_type":"box","text":"Dynamic 2070 Fund","page_number":8,"box":{"x":279,"y":150,"width":147,"height":11}},{"id":"e170781d-0b88-441c-b0c3-88b40d0ef26e","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":165,"width":136,"height":9}},{"id":"5dd90ab1-6ec0-490a-8b56-0c4820996ae8","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":164,"width":9,"height":7}},{"id":"f2228601-7889-463f-b359-eca6b2331e2f","block_type":"box","text":"ESG Index Retirement Fund","page_number":8,"box":{"x":279,"y":165,"width":201,"height":9}},{"id":"0013e24a-4458-417a-9960-6b1a26228914","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":181,"width":136,"height":9}},{"id":"f9434310-9c3b-4c8f-b4e4-38aaf0343136","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":180,"width":9,"height":6}},{"id":"1646e9e8-5799-4815-9124-689862e11c01","block_type":"box","text":"ESG Index 2030 Fund","page_number":8,"box":{"x":279,"y":181,"width":160,"height":9}},{"id":"8a575106-574b-4ae1-9a76-3786a7605d22","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":196,"width":136,"height":9}},{"id":"6a107be4-a4c5-4c46-9e2b-4b96f4313495","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":195,"width":9,"height":7}},{"id":"cb890349-4a11-4082-84c1-8226846ee7d1","block_type":"box","text":"ESG Index 2035 Fund","page_number":8,"box":{"x":279,"y":196,"width":160,"height":9}},{"id":"80a1aa86-3fd1-4a67-8539-9bb8a103efe1","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":212,"width":136,"height":9}},{"id":"35a2e4ae-b804-4e91-ac71-ef1e5713cbde","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":211,"width":9,"height":6}},{"id":"a2850a97-65e7-47bb-b730-ad441f684c8c","block_type":"box","text":"ESG Index 2040 Fund","page_number":8,"box":{"x":279,"y":212,"width":160,"height":9}},{"id":"07c49a1d-939d-4521-ba02-ac6f16c609d6","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":227,"width":136,"height":9}},{"id":"740e446c-90d8-4b9e-bfc0-5eed2df3cf3a","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":226,"width":9,"height":7}},{"id":"8df533fb-fa89-4f2f-a329-12b9913630e3","block_type":"box","text":"ESG Index 2045 Fund","page_number":8,"box":{"x":279,"y":227,"width":160,"height":9}},{"id":"349125ad-cdb2-4a05-a4cd-7881674af77b","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":243,"width":136,"height":9}},{"id":"478cb5d2-40a7-4b16-a83d-292037e57a32","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":242,"width":9,"height":6}},{"id":"838e61db-8189-459f-ad29-aab511673ab8","block_type":"box","text":"ESG Index 2050 Fund","page_number":8,"box":{"x":279,"y":243,"width":160,"height":9}},{"id":"86168a94-6722-49f7-80ef-d395eb0813b9","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":258,"width":136,"height":9}},{"id":"c66f7939-8125-46b0-ae6e-dc3f37109767","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":257,"width":9,"height":7}},{"id":"271403ee-f275-4b83-98b7-c91892176245","block_type":"box","text":"ESG Index 2055 Fund","page_number":8,"box":{"x":279,"y":258,"width":160,"height":9}},{"id":"186ac65c-8454-4f63-8c92-4e5c0efb4549","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":274,"width":136,"height":9}},{"id":"b2548b10-a4bb-4d64-9cf3-422be32a7f63","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":273,"width":9,"height":6}},{"id":"58208ad9-bed4-4a0e-86d6-d3c832cb558a","block_type":"box","text":"ESG Index 2060 Fund","page_number":8,"box":{"x":279,"y":274,"width":160,"height":9}},{"id":"f5f76c50-4c55-4a8c-a800-9ff771053f18","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":289,"width":136,"height":9}},{"id":"3444ef1e-f3a3-41de-aeef-db9e8609dd94","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":288,"width":9,"height":7}},{"id":"95a759d3-4010-413d-864a-392e39444eac","block_type":"box","text":"ESG Index 2065 Fund","page_number":8,"box":{"x":279,"y":289,"width":160,"height":9}},{"id":"d97dd363-a5d3-4ef7-b8e0-fb74cb1a9a82","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":305,"width":136,"height":9}},{"id":"b9e818fd-c13b-48e7-b7b1-e011291b362f","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":304,"width":9,"height":6}},{"id":"45f8268f-cd81-4d32-bb8a-bc5030fdcfe0","block_type":"box","text":"ESG Index 2070 Fund","page_number":8,"box":{"x":279,"y":305,"width":160,"height":9}},{"id":"2c18d214-f1a5-447c-9dd2-ed5134387777","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":320,"width":136,"height":9}},{"id":"5a8cf70c-bcac-4a53-8ee6-a44b53211ee7","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":319,"width":9,"height":7}},{"id":"632c1f80-5131-4856-bb5b-108f840a24e6","block_type":"box","text":"Index Retirement Fund","page_number":8,"box":{"x":279,"y":320,"width":165,"height":9}},{"id":"8a376eb6-b3b5-4bb8-9eff-448b566bf189","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":336,"width":136,"height":9}},{"id":"0c0c62ac-493a-4774-82c1-9ec0bb1f4b1f","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":335,"width":9,"height":6}},{"id":"c3bfd27c-0fb0-4178-9237-a3123c48c29f","block_type":"box","text":"Index 2030 Fund","page_number":8,"box":{"x":279,"y":336,"width":124,"height":9}},{"id":"14f5ea3c-a6be-469b-8368-b5b24e6cf78d","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":351,"width":136,"height":9}},{"id":"77fd6a30-d13a-44f5-bca3-ac593d71ef27","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":350,"width":9,"height":7}},{"id":"ca94c997-f9e0-4d8a-a939-5daccfe64816","block_type":"box","text":"Index 2035 Fund","page_number":8,"box":{"x":279,"y":351,"width":124,"height":9}},{"id":"17c69528-3557-4d08-b307-81af481467d0","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":367,"width":136,"height":9}},{"id":"95f85b7d-398c-49e3-ad46-f5137ff9e925","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":366,"width":9,"height":6}},{"id":"0161c9c2-9fa6-4c1f-adf3-3b57200d6fd8","block_type":"box","text":"Index 2040 Fund","page_number":8,"box":{"x":279,"y":367,"width":124,"height":9}},{"id":"cb840175-4e97-4c7c-9503-10b55da8e066","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":382,"width":136,"height":9}},{"id":"3a89fa50-04aa-4cb4-81e7-8e1232480feb","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":381,"width":9,"height":7}},{"id":"26be06e6-5347-4f7f-953f-b7aed54ae6ce","block_type":"box","text":"Index 2045 Fund","page_number":8,"box":{"x":279,"y":382,"width":124,"height":9}},{"id":"4194dbce-3e1e-4c41-8494-d5604ca632cd","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":398,"width":136,"height":9}},{"id":"9d9cea60-e74b-49b1-bd5f-661d0d31141d","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":397,"width":9,"height":6}},{"id":"5b791615-bcef-4ed2-a347-b43f083c931d","block_type":"box","text":"Index 2050 Fund","page_number":8,"box":{"x":279,"y":398,"width":124,"height":9}},{"id":"0863a352-9945-4c37-98e3-249d256843f3","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":413,"width":136,"height":9}},{"id":"cfadb4e6-25e9-4002-9112-691480ea23f6","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":412,"width":9,"height":7}},{"id":"02f045f1-e265-44ac-a11b-2ab83e35234b","block_type":"box","text":"Index 2055 Fund","page_number":8,"box":{"x":279,"y":413,"width":124,"height":9}},{"id":"cd500a9e-2df7-4992-975c-7be94de2b55e","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":429,"width":136,"height":9}},{"id":"1433d866-a17a-413d-8bb0-9209bf9e34bf","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":428,"width":9,"height":6}},{"id":"3f516920-91e7-4d11-a57e-88d500b256d7","block_type":"box","text":"Index 2060 Fund","page_number":8,"box":{"x":279,"y":429,"width":124,"height":9}},{"id":"4c4278d1-febe-48b6-9e77-ac64f11930a5","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":444,"width":136,"height":9}},{"id":"0303d29b-fac3-49bf-bbd3-1463072b93f2","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":443,"width":9,"height":7}},{"id":"0d1ba981-d2d0-4c7b-bf43-63634a16b4c4","block_type":"box","text":"Index 2065 Fund","page_number":8,"box":{"x":279,"y":444,"width":124,"height":9}},{"id":"1dfcebe4-b3d8-4a91-9a5e-83aa868791d1","block_type":"box","text":"BlackRock LifePath","page_number":8,"box":{"x":133,"y":460,"width":136,"height":9}},{"id":"af610d95-3019-44e9-9143-bfc8974fb679","block_type":"box","text":"®","page_number":8,"box":{"x":270,"y":459,"width":9,"height":6}},{"id":"ffe37868-4db8-4884-90c4-cb8945b6e956","block_type":"box","text":"Index 2070 Fund","page_number":8,"box":{"x":279,"y":460,"width":124,"height":9}},{"id":"c3ae6b96-9aee-4315-a9df-9350dd743a61","block_type":"box","text":"iShares MSCI Total International Index Fund","page_number":8,"box":{"x":133,"y":475,"width":310,"height":9}},{"id":"72119757-1a38-4506-b1d9-428c7191eeeb","block_type":"box","text":"iShares Russell 1000 Large-Cap Index Fund","page_number":8,"box":{"x":133,"y":491,"width":303,"height":11}},{"id":"82903656-0c95-4965-9a04-08e97b305407","block_type":"box","text":"iShares S&P 500 Index Fund","page_number":8,"box":{"x":133,"y":506,"width":200,"height":9}},{"id":"8357cb53-bf32-4a7b-a01f-73145e587294","block_type":"box","text":"iShares U.S. Aggregate Bond Index Fund","page_number":8,"box":{"x":133,"y":522,"width":284,"height":11}},{"id":"f152dd7f-678c-4549-a995-797784279632","block_type":"box","text":"BlackRock Funds IV","page_number":8,"box":{"x":116,"y":553,"width":154,"height":9}},{"id":"1a861768-6081-4297-a5af-04d5fe1d3a33","block_type":"box","text":"BlackRock Credit Relative Value Fund","page_number":8,"box":{"x":133,"y":568,"width":269,"height":9}},{"id":"f96f144c-4451-4eb8-8dc3-ddec91be82cb","block_type":"box","text":"BlackRock Systematic Multi-Strategy Fund","page_number":8,"box":{"x":133,"y":584,"width":299,"height":11}},{"id":"7bf94d78-bd8e-4a59-bb5c-246c3d70236b","block_type":"box","text":"BlackRock Funds V","page_number":8,"box":{"x":116,"y":615,"width":148,"height":9}},{"id":"6f5bb24d-74c9-47df-83e4-e122e5065741","block_type":"box","text":"BlackRock Core Bond Portfolio","page_number":8,"box":{"x":133,"y":630,"width":220,"height":9}},{"id":"5967ced7-7b6e-4ad4-bc0e-395821803965","block_type":"box","text":"BlackRock Floating Rate Income Portfolio","page_number":8,"box":{"x":133,"y":646,"width":293,"height":11}},{"id":"3fceb8bb-a5a6-4bcc-85cf-54d700d2fd52","block_type":"box","text":"BlackRock High Yield Portfolio","page_number":8,"box":{"x":133,"y":661,"width":217,"height":12}},{"id":"d2c5acb3-8ce6-4a8f-86b2-8b0b2c7ebe46","block_type":"box","text":"BlackRock Income Fund","page_number":8,"box":{"x":133,"y":677,"width":168,"height":9}},{"id":"dac2b7e7-8bb9-4815-ba70-a725b4d145a4","block_type":"box","text":"BlackRock Inflation Protected Bond Portfolio","page_number":8,"box":{"x":133,"y":692,"width":309,"height":9}},{"id":"a6be1c0e-ed05-4a39-9eb7-2387e66d1d9a","block_type":"box","text":"BlackRock Low Duration Bond Portfolio","page_number":8,"box":{"x":133,"y":708,"width":278,"height":9}},{"id":"ad53b8d1-252b-40c0-9125-19fe4a1d4d72","block_type":"box","text":"BlackRock Strategic Income Opportunities","page_number":8,"box":{"x":133,"y":723,"width":289,"height":12}},{"id":"e2b75f9f-b2d6-497e-9949-c72f979e6350","block_type":"box","text":"Portfolio","page_number":8,"box":{"x":133,"y":739,"width":59,"height":9}},{"id":"41e7be61-48b9-442a-a8a6-80688ef9a639","block_type":"box","text":"BlackRock Funds VI","page_number":8,"box":{"x":116,"y":770,"width":150,"height":9}},{"id":"b2036958-b7dc-4406-a6ab-19aef39251ad","block_type":"box","text":"BlackRock Advantage CoreAlpha Bond Fund","page_number":8,"box":{"x":133,"y":785,"width":309,"height":12}},{"id":"19330419-ce93-4fb7-9391-29635ccb73b4","block_type":"box","text":"BlackRock Global Allocation Fund, Inc.","page_number":8,"box":{"x":116,"y":816,"width":287,"height":11}},{"id":"daa426c1-a27a-46dc-a890-f6835a6e8528","block_type":"box","text":"BlackRock Index Funds, Inc.","page_number":8,"box":{"x":116,"y":847,"width":213,"height":11}},{"id":"5c2659ce-3e09-486b-8599-9328e1816809","block_type":"box","text":"iShares MSCI EAFE International Index Fund","page_number":8,"box":{"x":133,"y":863,"width":317,"height":9}},{"id":"746a5c49-48cd-466e-8cd4-38b263dd5125","block_type":"box","text":"iShares Russell 2000 Small-Cap Index Fund","page_number":8,"box":{"x":133,"y":878,"width":303,"height":12}},{"id":"c485c6a0-e55a-4d92-b8e3-2eb0b7a29873","block_type":"box","text":"BlackRock International Select Equity Fund","page_number":8,"box":{"x":520,"y":87,"width":324,"height":12}},{"id":"5c2d496b-8a3a-483d-a2d9-252b5200eed1","block_type":"box","text":"BlackRock Large Cap Focus Growth Fund, Inc.","page_number":8,"box":{"x":520,"y":118,"width":349,"height":12}},{"id":"fde8a767-9609-4782-ac27-8cb0c0b849ae","block_type":"box","text":"BlackRock Large Cap Focus Value Fund, Inc.","page_number":8,"box":{"x":520,"y":149,"width":335,"height":12}},{"id":"8bebe692-697e-4872-a4ce-d612abaaaf10","block_type":"box","text":"BlackRock Large Cap Series Funds, Inc.","page_number":8,"box":{"x":520,"y":180,"width":296,"height":12}},{"id":"76d3ba34-ff55-4afd-a591-264551b8fc1e","block_type":"box","text":"BlackRock Advantage Large Cap Core Fund","page_number":8,"box":{"x":537,"y":196,"width":306,"height":12}},{"id":"4d8d6f70-1e85-46e0-a0a0-f80577357901","block_type":"box","text":"BlackRock Advantage Large Cap Value Fund","page_number":8,"box":{"x":537,"y":212,"width":314,"height":11}},{"id":"31bb7a52-6efb-4193-89a2-de30342f81f6","block_type":"box","text":"BlackRock Event Driven Equity Fund","page_number":8,"box":{"x":537,"y":227,"width":261,"height":12}},{"id":"9b75e461-c14e-4d57-a322-3f19aa7f3910","block_type":"box","text":"BlackRock Liquidity Funds","page_number":8,"box":{"x":520,"y":258,"width":203,"height":12}},{"id":"315ac784-1dcf-4153-abdb-96b3e1214cf4","block_type":"box","text":"FedFund","page_number":8,"box":{"x":537,"y":274,"width":64,"height":9}},{"id":"1b9b6032-5a05-47b1-8641-d1b2339286cf","block_type":"box","text":"MuniCash","page_number":8,"box":{"x":537,"y":289,"width":74,"height":9}},{"id":"a03c85a8-8cb2-402c-8c51-7208d587af6c","block_type":"box","text":"TempCash","page_number":8,"box":{"x":537,"y":305,"width":77,"height":11}},{"id":"7c5857fe-a519-48e4-bdaa-c25dfb1f8f35","block_type":"box","text":"BlackRock Select Treasury Based Liquidity Fund","page_number":8,"box":{"x":537,"y":320,"width":339,"height":12}},{"id":"ef75e368-835f-44df-9248-577063d6d05a","block_type":"box","text":"T-Fund","page_number":8,"box":{"x":537,"y":336,"width":54,"height":9}},{"id":"ff99f8cf-d754-43f6-94ba-3c0b14ae0ca4","block_type":"box","text":"Treasury Trust Fund","page_number":8,"box":{"x":537,"y":351,"width":142,"height":12}},{"id":"7ea70c9d-292f-4cad-b336-fc5e87deeb69","block_type":"box","text":"BlackRock Mid-Cap Value Series, Inc.","page_number":8,"box":{"x":520,"y":382,"width":282,"height":12}},{"id":"1f07887a-3600-44e1-9cb5-a1d1935c7595","block_type":"box","text":"BlackRock Mid-Cap Value Fund","page_number":8,"box":{"x":537,"y":398,"width":227,"height":11}},{"id":"d0b51f44-8207-40f2-9711-24477f4f766a","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust","page_number":8,"box":{"x":520,"y":429,"width":339,"height":11}},{"id":"af51f9c2-7c8b-42e7-a963-7363f8062a4b","block_type":"box","text":"BlackRock New Jersey Municipal Bond Fund","page_number":8,"box":{"x":537,"y":444,"width":314,"height":12}},{"id":"41b17b8c-a9c3-4d64-926e-3055337d5620","block_type":"box","text":"BlackRock New York Municipal Opportunities","page_number":8,"box":{"x":537,"y":460,"width":324,"height":11}},{"id":"f44edc6a-c379-41fb-91fe-7c0a7492c4f7","block_type":"box","text":"Fund","page_number":8,"box":{"x":537,"y":475,"width":38,"height":9}},{"id":"83d9f172-ac8f-4081-8f23-78934621e326","block_type":"box","text":"BlackRock Pennsylvania Municipal Bond Fund","page_number":8,"box":{"x":537,"y":491,"width":326,"height":11}},{"id":"58bea8b2-2ae5-4c67-9d79-913e5cc05306","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc.","page_number":8,"box":{"x":520,"y":522,"width":282,"height":11}},{"id":"4363b234-e8eb-4caf-ae97-77fb9655a91b","block_type":"box","text":"BlackRock National Municipal Fund","page_number":8,"box":{"x":537,"y":537,"width":253,"height":12}},{"id":"cfbcbd2d-18ca-4820-ad53-a75636429dd1","block_type":"box","text":"BlackRock Short Duration Muni Fund","page_number":8,"box":{"x":537,"y":553,"width":263,"height":9}},{"id":"1b1300b1-1fb6-4d3b-b44f-f55737b009f9","block_type":"box","text":"BlackRock Municipal Series Trust","page_number":8,"box":{"x":520,"y":584,"width":252,"height":11}},{"id":"d779bf38-9e29-4cf0-a41b-601f9b231acc","block_type":"box","text":"BlackRock Strategic Municipal Opportunities","page_number":8,"box":{"x":537,"y":599,"width":313,"height":12}},{"id":"dc5762f6-ec26-4aa0-8227-fd43497119a8","block_type":"box","text":"Fund","page_number":8,"box":{"x":537,"y":615,"width":38,"height":9}},{"id":"b2ecdc69-9551-4f47-8bbc-4df824c3b5e2","block_type":"box","text":"BlackRock Natural Resources Trust","page_number":8,"box":{"x":520,"y":646,"width":264,"height":9}},{"id":"0dbd8bef-2ff7-49c3-bbab-ae3ea5f72682","block_type":"box","text":"BlackRock Series Fund, Inc.","page_number":8,"box":{"x":520,"y":677,"width":203,"height":11}},{"id":"cf2aa235-0eb1-49d4-875a-ce4b41079854","block_type":"box","text":"BlackRock Advantage Large Cap Core Portfolio","page_number":8,"box":{"x":537,"y":692,"width":327,"height":12}},{"id":"9d71adbe-b87e-4eb7-97c2-7078cb136c82","block_type":"box","text":"BlackRock Balanced Portfolio","page_number":8,"box":{"x":537,"y":708,"width":205,"height":9}},{"id":"7826b474-29b5-40d3-bd11-66ec0f502076","block_type":"box","text":"BlackRock Capital Appreciation Portfolio","page_number":8,"box":{"x":537,"y":723,"width":283,"height":12}},{"id":"cc478013-66bd-4bc5-9750-45c858da9ff4","block_type":"box","text":"BlackRock Global Allocation Portfolio","page_number":8,"box":{"x":537,"y":739,"width":263,"height":9}},{"id":"038c306c-ffbb-4e38-9eed-b99f4ddfc9ce","block_type":"box","text":"BlackRock Government Money Market Portfolio","page_number":8,"box":{"x":537,"y":754,"width":331,"height":12}},{"id":"4f57fd2a-db49-4ad0-8287-4386900b7da3","block_type":"box","text":"BlackRock Series Fund II, Inc.","page_number":8,"box":{"x":520,"y":785,"width":221,"height":11}},{"id":"c116cd10-dfc0-47fd-8c98-1bf25583bb90","block_type":"box","text":"BlackRock High Yield Portfolio","page_number":8,"box":{"x":537,"y":801,"width":217,"height":11}},{"id":"ed74e751-328f-4315-a44b-972c57fff8b8","block_type":"box","text":"BlackRock Series, Inc.","page_number":8,"box":{"x":520,"y":832,"width":166,"height":11}},{"id":"502d3924-1482-4c47-a032-81ed7d4c9f80","block_type":"box","text":"BlackRock International Fund","page_number":8,"box":{"x":537,"y":847,"width":208,"height":9}},{"id":"f064d06b-019c-40dc-8c53-510a1ed3e9c2","block_type":"box","text":"BlackRock Strategic Global Bond Fund, Inc.","page_number":8,"box":{"x":520,"y":878,"width":325,"height":12}},{"id":"8f9db696-b327-4cbb-8da7-61d2bb7338f3","block_type":"box","text":"6","page_number":8,"box":{"x":496,"y":909,"width":7,"height":9}},{"id":"316b5dda-e332-422d-8b2d-7d788525ec5f","block_type":"box","text":"NM1026U-5982643-8/241","page_number":8,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"750e8de9-d8b6-404c-9b7f-bd70977f1508","block_type":"box","text":"BlackRock Unconstrained Equity Fund","page_number":9,"box":{"x":116,"y":87,"width":288,"height":12}},{"id":"5b194b84-c1a9-46a7-89a6-6c16baf9de9c","block_type":"box","text":"BlackRock Variable Series Funds, Inc.","page_number":9,"box":{"x":116,"y":118,"width":282,"height":12}},{"id":"89bd6f0d-c01d-4175-837a-087081794b75","block_type":"box","text":"BlackRock 60/40 Target Allocation ETF V.I. Fund","page_number":9,"box":{"x":133,"y":134,"width":348,"height":12}},{"id":"49d098f9-fd21-4f3e-8f3f-4379dd59cb70","block_type":"box","text":"BlackRock Advantage Large Cap Core V.I. Fund","page_number":9,"box":{"x":133,"y":150,"width":337,"height":11}},{"id":"d49601ff-81b5-4ee5-896c-8ac0a1a39352","block_type":"box","text":"BlackRock Advantage Large Cap Value V.I. Fund","page_number":9,"box":{"x":133,"y":165,"width":344,"height":12}},{"id":"ce6699db-462c-4ede-8bc9-d3b54936987e","block_type":"box","text":"BlackRock Advantage SMID Cap V.I. Fund","page_number":9,"box":{"x":133,"y":181,"width":303,"height":11}},{"id":"f97e1fbf-80b5-40d8-b141-806f7199d418","block_type":"box","text":"BlackRock Basic Value V.I. Fund","page_number":9,"box":{"x":133,"y":196,"width":234,"height":9}},{"id":"4e967acf-8b5b-4790-a44d-74c1764cc83b","block_type":"box","text":"BlackRock Capital Appreciation V.I. Fund","page_number":9,"box":{"x":133,"y":212,"width":293,"height":11}},{"id":"0bcc40ea-f300-4cb3-8881-284d547ddb41","block_type":"box","text":"BlackRock Equity Dividend V.I. Fund","page_number":9,"box":{"x":133,"y":227,"width":264,"height":12}},{"id":"644617d5-2126-476b-bfe8-53748aa4516b","block_type":"box","text":"BlackRock Global Allocation V.I. Fund","page_number":9,"box":{"x":133,"y":243,"width":273,"height":9}},{"id":"e6867e15-a810-4b33-96b5-1d534024368f","block_type":"box","text":"BlackRock Government Money Market V.I. Fund","page_number":9,"box":{"x":537,"y":88,"width":341,"height":11}},{"id":"aa86a2ef-7672-45b3-8fbb-49d97722a73e","block_type":"box","text":"BlackRock International Index V.I. Fund","page_number":9,"box":{"x":537,"y":103,"width":281,"height":9}},{"id":"9207622f-dbe6-40a6-bc78-6b420a43b099","block_type":"box","text":"BlackRock International V.I. Fund","page_number":9,"box":{"x":537,"y":119,"width":238,"height":9}},{"id":"4c5431d9-77c1-49ec-bfd5-3564a7bab13d","block_type":"box","text":"BlackRock Large Cap Focus Growth V.I. Fund","page_number":9,"box":{"x":537,"y":134,"width":323,"height":12}},{"id":"55cb2ad4-6a3e-40b2-88be-c0449e5b35bf","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund","page_number":9,"box":{"x":537,"y":150,"width":284,"height":11}},{"id":"ca915bcf-4ce1-4dbf-ba30-0da9475b8776","block_type":"box","text":"BlackRock S&P 500 Index V.I. Fund","page_number":9,"box":{"x":537,"y":165,"width":256,"height":9}},{"id":"6948cc23-562c-41ac-96d2-2b975363bf3c","block_type":"box","text":"BlackRock Small Cap Index V.I. Fund","page_number":9,"box":{"x":537,"y":181,"width":265,"height":11}},{"id":"77097480-6916-489d-81a2-b2422e9bfdbd","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.","page_number":9,"box":{"x":520,"y":211,"width":299,"height":12}},{"id":"900cf1b2-1a1d-4833-82d5-87057e1badd7","block_type":"box","text":"BlackRock High Yield V.I. Fund","page_number":9,"box":{"x":537,"y":227,"width":227,"height":12}},{"id":"0df5f5c1-c3ad-4666-8776-6af6eef4461c","block_type":"box","text":"BlackRock Total Return V.I. Fund","page_number":9,"box":{"x":537,"y":243,"width":238,"height":9}},{"id":"3c7f9bf0-08e1-4587-92d9-2cf82dc64262","block_type":"box","text":"Shareholders should retain this Supplement for future reference.","page_number":9,"box":{"x":267,"y":274,"width":470,"height":11}},{"id":"f78646ac-ae56-4460-a092-e8f0f92a3e1b","block_type":"box","text":"SAI-GLOBAL-0926SUP","page_number":9,"box":{"x":116,"y":305,"width":175,"height":9}},{"id":"d6dbd521-91c2-40f2-8773-b2aea35bc0f3","block_type":"box","text":"7","page_number":9,"box":{"x":496,"y":910,"width":7,"height":8}},{"id":"d7822bca-8be9-4fec-908e-4264fd87776b","block_type":"box","text":"NM1026U-5982643-9/241","page_number":9,"box":{"x":757,"y":969,"width":144,"height":7}},{"id":"b0102634-9fea-4ee3-a1fb-07860968f8f6","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":10,"box":{"x":271,"y":83,"width":435,"height":11}},{"id":"0d4ab5f5-1dfa-4b0b-bf21-d6da4bc410fd","block_type":"box","text":"BlackRock Strategic Global Bond Fund, Inc.","page_number":10,"box":{"x":215,"y":120,"width":549,"height":19}},{"id":"c77c1cc4-e031-4cd5-8668-e32b03b96593","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 441-7762","page_number":10,"box":{"x":118,"y":153,"width":742,"height":15}},{"id":"145e980e-930f-4924-99c6-b46d18f1fec0","block_type":"box","text":"This Statement of Additional Information of the BlackRock Strategic Global Bond Fund, Inc. (the “Fund”)","page_number":10,"box":{"x":101,"y":211,"width":793,"height":12}},{"id":"0162c440-6e14-482b-8220-e0ed0838a4d8","block_type":"box","text":"is not a prospectus and should be read in conjunction with the Prospectuses of the Fund, dated","page_number":10,"box":{"x":70,"y":226,"width":725,"height":12}},{"id":"cbb70534-49dd-4a2d-b394-ff40a5ff76b9","block_type":"box","text":"April 30, 2026, as they may be amended or supplemented from time to time, which have been filed with the","page_number":10,"box":{"x":68,"y":241,"width":815,"height":12}},{"id":"efffee63-5580-46fe-8bca-87498424fec9","block_type":"box","text":"Securities and Exchange Commission (the “Commission”) and can be obtained, without charge, by calling","page_number":10,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"14cd6115-eb38-4e28-b0d3-0baba9ac17fa","block_type":"box","text":"(800) 441-7762 or by writing to the Fund at the above address. The Fund’s Prospectuses are Part I of this","page_number":10,"box":{"x":69,"y":271,"width":800,"height":12}},{"id":"6cb6a0c5-55a3-4dee-8548-ab3f5828fa68","block_type":"box","text":"Statement of Additional Information and the portions of Part II of this Statement of Additional Information","page_number":10,"box":{"x":69,"y":286,"width":809,"height":12}},{"id":"ed7635fb-4499-4580-ad64-b1186269d10f","block_type":"box","text":"that relate to the Fund have been incorporated by reference into the Fund’s Prospectuses. The portions of Part","page_number":10,"box":{"x":69,"y":301,"width":840,"height":12}},{"id":"cee22422-cf7a-4b46-9246-b75903fc2322","block_type":"box","text":"II of this Statement of Additional Information that do not relate to the Fund do not form a part of the Fund’s","page_number":10,"box":{"x":70,"y":317,"width":814,"height":11}},{"id":"2ed16c70-2b06-4370-9d01-b85e93e713ef","block_type":"box","text":"Statement of Additional Information, have not been incorporated by reference into the Fund’s Prospectuses","page_number":10,"box":{"x":69,"y":332,"width":819,"height":11}},{"id":"1847caa5-9726-4834-862e-ae6f5d38cd3f","block_type":"box","text":"and should not be relied upon by investors in the Fund. The audited financial statements of the Fund are","page_number":10,"box":{"x":69,"y":347,"width":796,"height":12}},{"id":"e413ef6d-f401-4bf1-83c9-fdbda6a106cf","block_type":"box","text":"incorporated into this Statement of Additional Information by reference to Fund’s Annual Financial","page_number":10,"box":{"x":70,"y":362,"width":751,"height":12}},{"id":"8fd62321-c368-4a91-a37c-d3b05d41f85a","block_type":"box","text":"Statements and Additional Information for the fiscal year ended December 31, 2025, as filed with the SEC on","page_number":10,"box":{"x":69,"y":377,"width":829,"height":12}},{"id":"8dc8c894-566e-407a-8c71-9c0eab297d79","block_type":"box","text":"Form N-CSR (the “2025 Annual Financial Statements”). You may request a copy of 2025 Annual Financial","page_number":10,"box":{"x":70,"y":392,"width":803,"height":12}},{"id":"dbde62c5-47fb-4f37-931a-ee5296c4e064","block_type":"box","text":"Statements at no charge by calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time on any","page_number":10,"box":{"x":69,"y":407,"width":802,"height":12}},{"id":"1d3b75c2-105d-4f8a-9e3f-b31e8726fc97","block_type":"box","text":"business day.","page_number":10,"box":{"x":70,"y":423,"width":100,"height":11}},{"id":"67023b01-3dc9-49fa-a63b-cc615cef0278","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act” or the","page_number":10,"box":{"x":103,"y":445,"width":786,"height":12}},{"id":"dc631fef-c459-4b10-87e6-36365a99b6f3","block_type":"box","text":"“1940 Act”), or other applicable law, will include any rules promulgated thereunder and any guidance,","page_number":10,"box":{"x":69,"y":460,"width":772,"height":12}},{"id":"c60b478f-06ae-49b9-ada8-c62625c2f9fd","block_type":"box","text":"interpretations or modifications by the Commission, Commission staff or other authority with appropriate","page_number":10,"box":{"x":70,"y":475,"width":804,"height":12}},{"id":"d8a928c6-1d00-4d42-8cdc-80f016dd5acf","block_type":"box","text":"jurisdiction, including court interpretations, and exemptive, no-action or other relief or permission from the","page_number":10,"box":{"x":67,"y":490,"width":819,"height":12}},{"id":"8dc8a540-a557-4247-bd6f-b7428bb4479e","block_type":"box","text":"Commission, Commission staff or other authority.","page_number":10,"box":{"x":70,"y":506,"width":378,"height":11}},{"id":"63f6c1a5-d47a-437c-b36a-c0a3f303f63d","block_type":"box","text":"Class","page_number":10,"box":{"x":69,"y":534,"width":31,"height":7}},{"id":"123d3564-a847-43d0-89c1-a74463e693c7","block_type":"box","text":"Ticker Symbol","page_number":10,"box":{"x":827,"y":534,"width":82,"height":9}},{"id":"5856c2a0-4e86-4775-a3f0-6974017466fd","block_type":"box","text":"Investor A Shares","page_number":10,"box":{"x":70,"y":552,"width":124,"height":9}},{"id":"ff832340-ca69-4c50-a844-41ae14ccd983","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MDWIX","page_number":10,"box":{"x":199,"y":552,"width":695,"height":9}},{"id":"68fcf088-3ee2-4379-82db-b6b6bba3e5bb","block_type":"box","text":"Investor C Shares .","page_number":10,"box":{"x":70,"y":567,"width":131,"height":9}},{"id":"83645979-4e6e-43d6-a682-5eee99266eb9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MHWIX","page_number":10,"box":{"x":208,"y":567,"width":686,"height":9}},{"id":"30149d11-aa15-4dc3-920e-7babd527972d","block_type":"box","text":"Institutional Shares","page_number":10,"box":{"x":70,"y":582,"width":137,"height":9}},{"id":"b49e868e-ac93-4f3c-8df0-24eb499874bd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MAWIX","page_number":10,"box":{"x":216,"y":582,"width":676,"height":9}},{"id":"7a3ec0bf-5250-4cc8-b76b-e7458879bb6a","block_type":"box","text":"Class K Shares","page_number":10,"box":{"x":69,"y":597,"width":109,"height":9}},{"id":"6d5177fc-88de-4723-acfb-b9ff273fc4da","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MKWIX","page_number":10,"box":{"x":183,"y":597,"width":710,"height":9}},{"id":"84a970ef-5915-437a-b212-e90436e97ca4","block_type":"box","text":"BlackRock Advisors, LLC — Manager","page_number":10,"box":{"x":260,"y":652,"width":460,"height":19}},{"id":"a624166c-d6ed-4139-b712-1c94184c93de","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":10,"box":{"x":222,"y":674,"width":536,"height":18}},{"id":"c3bc83f0-93fa-4a7b-9cf1-86a64eb1a188","block_type":"box","text":"The date of this Statement of Additional Information is April 30, 2026.","page_number":10,"box":{"x":223,"y":734,"width":531,"height":12}},{"id":"cac38562-37e2-4ea6-b183-9bd573be7c96","block_type":"box","text":"NM1026U-5982643-10/241","page_number":10,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"23331cb2-9c71-48a9-bcfb-91b5a6860b20","block_type":"box","text":"TABLE OF CONTENTS","page_number":11,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"0f7f7ce5-9c41-490b-b4fa-795330791756","block_type":"box","text":"Page","page_number":11,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"38baaf95-fb2c-41f8-aa05-346ebe5409fe","block_type":"box","text":"PART I","page_number":11,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"c88bab03-713a-4180-bf1c-59b34622e49d","block_type":"box","text":"Investment Objectives and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":11,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"5143b979-8a10-4ff5-875c-55efd64f8db2","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-8","page_number":11,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"7b11ae1a-5a56-4a61-9617-edda8f2d884c","block_type":"box","text":"Information on Directors and Officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-10","page_number":11,"box":{"x":70,"y":141,"width":839,"height":9}},{"id":"ac5e5aed-9c53-48dc-aa00-7b42a355d4f5","block_type":"box","text":"Management, Advisory and Other Service Arrangements . . . . . . . . .","page_number":11,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"0a975b69-d41f-43e0-b594-90a224be417d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19","page_number":11,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"513548ad-1273-4424-aae2-d040af3ac0c5","block_type":"box","text":"Information on Sales Charges and Distribution Related Expenses .","page_number":11,"box":{"x":70,"y":174,"width":469,"height":11}},{"id":"6fb72426-b379-4f51-a154-1b4e81bccf04","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":11,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"71837454-ed1c-4445-84d9-eb46bc49d8f4","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":11,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"dca84683-daf7-430c-88cf-ea712dc41662","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":11,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"3eb177b0-6233-494a-b3a8-aa5ff1a9f06a","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":11,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"d67faadb-6fc0-446b-9ae1-c6c6b7bb4f3c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-25","page_number":11,"box":{"x":358,"y":207,"width":551,"height":9}},{"id":"8bdf5bae-ba94-4de0-a55c-488afd7137f2","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":11,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"49b7a1f0-71d1-4183-a8a0-695b4aa41dbf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-27","page_number":11,"box":{"x":382,"y":223,"width":526,"height":9}},{"id":"cf7b8d54-0994-4cff-b7a4-d7c75713376e","block_type":"box","text":"Financial Statements","page_number":11,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"18a0caa4-fa49-4e8d-a322-880feebfa76f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-29","page_number":11,"box":{"x":227,"y":239,"width":682,"height":9}},{"id":"79631176-6c19-46f8-b0c7-ee88e77865c4","block_type":"box","text":"PART II","page_number":11,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"cf0850d7-cc4e-4941-9834-bc825132f8c5","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":11,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"cb702343-5745-494b-a36a-b3d59218c4e9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1","page_number":11,"box":{"x":407,"y":287,"width":502,"height":9}},{"id":"df5fdddc-6e47-4493-b026-f9b062e5d7d7","block_type":"box","text":"Management and Other Service Arrangements . . . . . . . . . . . . . . . .","page_number":11,"box":{"x":70,"y":304,"width":461,"height":11}},{"id":"dd984a0b-d001-4351-bf85-b46779687fa9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-83","page_number":11,"box":{"x":537,"y":304,"width":372,"height":9}},{"id":"b2724e2a-2890-4f09-afdc-09ae6499712c","block_type":"box","text":"Selective Disclosure of Por tfolio Holdings . . . . . . . . . . . . . . . . . . .","page_number":11,"box":{"x":69,"y":320,"width":446,"height":11}},{"id":"37a06028-ccbb-4e43-93b5-bbdbd1d13829","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-86","page_number":11,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"d6903880-eb12-4983-8647-f19ad2914537","block_type":"box","text":"Purchase of Shares","page_number":11,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"e5000219-3a3f-4ea1-9cee-cad5422ab2ad","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-99","page_number":11,"box":{"x":211,"y":336,"width":698,"height":9}},{"id":"3af32e31-19ee-4d66-93f6-689d22dd2535","block_type":"box","text":"Redemption of Shares . .","page_number":11,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"d8f522b7-a277-46a8-8527-cf95324cf49d","block_type":"box","text":"........................................................................... I","page_number":11,"box":{"x":252,"y":353,"width":619,"height":9}},{"id":"3764b3eb-36da-466c-8d3a-e13f3c2a4538","block_type":"box","text":"I-116","page_number":11,"box":{"x":874,"y":353,"width":35,"height":9}},{"id":"9c0493c4-67e3-46dc-ac24-0cc752be85bc","block_type":"box","text":"Shareholder Services . .","page_number":11,"box":{"x":69,"y":369,"width":168,"height":9}},{"id":"d5b61fdc-4be4-4ed0-9ee0-483983dcf14b","block_type":"box","text":"............................................................................ I","page_number":11,"box":{"x":244,"y":369,"width":627,"height":9}},{"id":"caafa18b-d585-4e32-996a-1ad0fa51e864","block_type":"box","text":"I-119","page_number":11,"box":{"x":874,"y":369,"width":35,"height":9}},{"id":"9beb8012-7351-45d2-b6b5-9f7d9ba3f58c","block_type":"box","text":"Pricing of Shares","page_number":11,"box":{"x":69,"y":385,"width":119,"height":12}},{"id":"d46ea713-2656-4269-8ffb-04bd7da4707e","block_type":"box","text":".................................................................................. I","page_number":11,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"197b5bcd-2f7b-48f2-b953-dad2b3ccf1bb","block_type":"box","text":"I-123","page_number":11,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"75d111a5-d6fd-4da0-aa97-665a2e1123ef","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":11,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"43c64545-64b3-441b-8faa-ef8003a16a2d","block_type":"box","text":".............................................................. I","page_number":11,"box":{"x":358,"y":402,"width":513,"height":9}},{"id":"a0c90722-185f-481b-ab5d-8654635ee3e1","block_type":"box","text":"I-125","page_number":11,"box":{"x":874,"y":402,"width":35,"height":9}},{"id":"93db6204-47e0-4b55-8476-853e7e972d8a","block_type":"box","text":"Dividends and Taxes . .","page_number":11,"box":{"x":70,"y":418,"width":159,"height":9}},{"id":"1ba6387b-6f14-4fa2-a398-8f34076af72c","block_type":"box","text":"............................................................................. I","page_number":11,"box":{"x":236,"y":418,"width":635,"height":9}},{"id":"daef0fbd-3b0f-43cc-ae7e-c59caacaa81b","block_type":"box","text":"I-129","page_number":11,"box":{"x":874,"y":418,"width":35,"height":9}},{"id":"57cc7240-e521-4fdd-bb70-d85be895c567","block_type":"box","text":"Per formance Data","page_number":11,"box":{"x":69,"y":435,"width":129,"height":9}},{"id":"066ced3e-41fd-4d7e-81b0-27db45762294","block_type":"box","text":"................................................................................. I","page_number":11,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"5c8b3e0c-e373-493f-9831-bdc59dc2a0c1","block_type":"box","text":"I-137","page_number":11,"box":{"x":874,"y":435,"width":34,"height":9}},{"id":"0ac58b07-ee1a-460e-a6d0-0d0242358a94","block_type":"box","text":"Proxy Voting Policies and Procedures . . . . . . . . . . . . . . . . . . . . . .","page_number":11,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"5c0f6c1a-ebb4-43a8-8f30-d54da7f9a45f","block_type":"box","text":"........................................... I","page_number":11,"box":{"x":513,"y":451,"width":358,"height":9}},{"id":"16873ef4-4029-4b30-9fea-638524d84416","block_type":"box","text":"I-139","page_number":11,"box":{"x":874,"y":451,"width":35,"height":9}},{"id":"7ca39ef1-1107-41b9-8663-b5fb89b5966b","block_type":"box","text":"General Information","page_number":11,"box":{"x":69,"y":467,"width":140,"height":9}},{"id":"ffe2e955-657a-4cb9-8aa1-3c5c151304e1","block_type":"box","text":"............................................................................... I","page_number":11,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"04970c13-3c73-421f-a1d5-fd1ecbfca218","block_type":"box","text":"I-139","page_number":11,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"8f8fb29e-ca06-468d-8ad8-2182b72fe5c8","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":11,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"686278be-7b8f-4ea9-a495-205c4772d0a8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":11,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"7ef6761d-c13c-4f8f-8648-16299a5b12f9","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":11,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"5fbba431-ce5c-47ef-91c5-b54d80adf68b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":11,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"56559397-be4d-43d3-a18d-ac3e32e25a99","block_type":"box","text":"NM1026U-5982643-11/241","page_number":11,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"2bce3379-81db-4b36-a017-63ca11834b03","block_type":"box","text":"PART I: INFORMATION ABOUT THE FUND","page_number":12,"box":{"x":340,"y":45,"width":298,"height":9}},{"id":"20ce8c1a-3848-4742-b062-c247bd312d94","block_type":"box","text":"Par t I of this Statement of Additional Information (“SAI”) sets for th information about BlackRock Strategic Global","page_number":12,"box":{"x":102,"y":67,"width":802,"height":12}},{"id":"e2059b8f-745d-4769-b4cb-4aa886412bed","block_type":"box","text":"Bond Fund, Inc. (the “Strategic Global Bond Fund” or the “Fund”). It includes information about the Fund’s Board of","page_number":12,"box":{"x":70,"y":82,"width":822,"height":12}},{"id":"45e8caae-63c9-4a95-854c-34878932947c","block_type":"box","text":"Directors (the “Board” or the “Board of Directors”), the management services provided to and the management fees","page_number":12,"box":{"x":70,"y":98,"width":830,"height":11}},{"id":"6e3e41d3-2f0c-46f7-aa9c-428d25044fb1","block_type":"box","text":"paid by the Fund and information about other fees applicable to and services provided to the Fund. This Par t I of this","page_number":12,"box":{"x":70,"y":113,"width":832,"height":11}},{"id":"e2d51c7e-547b-4d83-8421-7777c7390943","block_type":"box","text":"SAI should be read in conjunction with the Fund’s Prospectuses and those por tions of Par t II of this SAI that per tain","page_number":12,"box":{"x":69,"y":128,"width":827,"height":11}},{"id":"6604bc6b-5b80-4918-9e32-c124e17a4783","block_type":"box","text":"to the Fund.","page_number":12,"box":{"x":68,"y":143,"width":85,"height":9}},{"id":"656a722d-bd3b-4cdb-bfe2-12c67e5e56f8","block_type":"box","text":"I. Investment Objectives and Policies","page_number":12,"box":{"x":69,"y":173,"width":270,"height":11}},{"id":"b2facf83-fb29-44d7-8ace-18d7fff90710","block_type":"box","text":"In implementing the Fund’s investment strategy, from time to time, BlackRock Advisors, LLC (“BlackRock” or the","page_number":12,"box":{"x":102,"y":196,"width":799,"height":11}},{"id":"21180541-d986-4ba5-9d9b-28e33508e05c","block_type":"box","text":"“Manager”), the Fund’s investment manager, may consider and employ techniques and strategies designed to","page_number":12,"box":{"x":70,"y":211,"width":784,"height":11}},{"id":"87e64efb-162c-4835-ab94-a5280ca8b682","block_type":"box","text":"minimize and defer the U.S. federal income taxes which may be incurred by shareholders in connection with their","page_number":12,"box":{"x":69,"y":226,"width":805,"height":11}},{"id":"5f3017e4-b19b-4263-8448-994846ed374a","block_type":"box","text":"investment in the Fund.","page_number":12,"box":{"x":70,"y":241,"width":165,"height":9}},{"id":"b27f0d23-8bbc-473d-99e4-3a0a7b1bc243","block_type":"box","text":"Set for th below is a listing of some of the types of investments and investment strategies that the Fund may","page_number":12,"box":{"x":102,"y":264,"width":774,"height":11}},{"id":"01fbc11d-9097-40d3-ac8d-d708689785d2","block_type":"box","text":"use, and the risks and considerations associated with those investments and investment strategies. Please see Par t","page_number":12,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"54b36967-2147-491d-b988-f39b2327c326","block_type":"box","text":"II of this SAI for fur ther information on these investments and investment strategies. Information contained in Par t II","page_number":12,"box":{"x":70,"y":294,"width":828,"height":11}},{"id":"577349fd-94d8-4831-b33e-4a58fc2951e7","block_type":"box","text":"about the risks and considerations associated with investments and/or investment strategies applies only to the","page_number":12,"box":{"x":69,"y":309,"width":805,"height":11}},{"id":"7326d6b8-e540-4ea3-8317-5153dba95fd5","block_type":"box","text":"extent the Fund makes each type of investment or uses each investment strategy. Also set for th below is a listing of","page_number":12,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"b3a53cde-1160-449d-9598-db1390e16aa1","block_type":"box","text":"the proxy voting policy and related guidelines applicable to the Fund. Please see “Proxy Voting Policies and","page_number":12,"box":{"x":68,"y":340,"width":760,"height":11}},{"id":"4255862e-3d89-4a40-96de-254d37b63bf3","block_type":"box","text":"Procedures” in Par t II of this SAI for fur ther information about these policies. A copy of each policy is included in","page_number":12,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"d2db038e-e753-4daf-ab85-a7fdb67899a1","block_type":"box","text":"Appendix B. Information that does not apply to the Fund does not form a par t of the Fund’s SAI and should not be","page_number":12,"box":{"x":68,"y":370,"width":813,"height":11}},{"id":"9a06b732-a7c5-47c0-8897-f33a18db25e6","block_type":"box","text":"relied on by investors in the Fund.","page_number":12,"box":{"x":69,"y":385,"width":240,"height":11}},{"id":"80ff2efb-6066-4962-9c33-5028453b8a0c","block_type":"box","text":"Only information that is clearly identified as applicable to the Fund is considered to form a par t of the Fund’s","page_number":12,"box":{"x":102,"y":407,"width":775,"height":12}},{"id":"43360473-e186-4151-b65c-c5637615c40e","block_type":"box","text":"SAI.","page_number":12,"box":{"x":69,"y":423,"width":26,"height":9}},{"id":"6e0769bd-0020-4ec5-8e2b-f4940bf38fcc","block_type":"box","text":"Strategic Global Bond Fund","page_number":12,"box":{"x":729,"y":452,"width":160,"height":8}},{"id":"8e735d8a-9e9b-41d6-b1b9-a80d746334bb","block_type":"box","text":"Asset-Backed Securities","page_number":12,"box":{"x":72,"y":471,"width":161,"height":8}},{"id":"ef580d09-4e5f-4f4f-90bb-85a366ded9b2","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":471,"width":8,"height":8}},{"id":"44bc3187-fa97-4346-b2df-e7e0df112f7d","block_type":"box","text":"Asset-Based Securities","page_number":12,"box":{"x":72,"y":491,"width":152,"height":8}},{"id":"c89db91b-7bdf-4245-824f-a7a1e2d7c874","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":491,"width":8,"height":8}},{"id":"7f76718b-2663-4bc8-a48c-f88bc42a03a8","block_type":"box","text":"Precious Metal-Related Securities","page_number":12,"box":{"x":83,"y":511,"width":215,"height":8}},{"id":"607a42d0-d0fb-4d1c-b4c9-861d0e3d6d4a","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":511,"width":8,"height":8}},{"id":"f26d9c3a-a367-43b8-a344-415f5ac86156","block_type":"box","text":"Borrowing and Leverage","page_number":12,"box":{"x":73,"y":531,"width":157,"height":10}},{"id":"83816089-0bf5-420f-9e3c-c48898de7eb2","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":531,"width":8,"height":8}},{"id":"da8cba38-d4d3-4e1d-b00c-3d12c06b2cdf","block_type":"box","text":"Cash Management","page_number":12,"box":{"x":73,"y":551,"width":122,"height":10}},{"id":"b19fd644-ca15-455b-81cd-af5052d7d453","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":552,"width":8,"height":7}},{"id":"fb03446f-5b10-4bbf-a39b-578fe99217ba","block_type":"box","text":"Collateralized Debt Obligations","page_number":12,"box":{"x":73,"y":572,"width":202,"height":10}},{"id":"c3f62478-d5d0-43c9-9b14-c886a8c79568","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":572,"width":8,"height":8}},{"id":"72bdc0d9-cee3-4298-ba68-03025b8fb6c4","block_type":"box","text":"Collateralized Bond Obligations","page_number":12,"box":{"x":83,"y":592,"width":198,"height":10}},{"id":"7c53811d-6ba4-4e79-9b2c-1ee2b65b6f60","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":592,"width":8,"height":8}},{"id":"a7054a02-54dc-4938-9d08-57d6148f5cd2","block_type":"box","text":"Collateralized Loan Obligations","page_number":12,"box":{"x":83,"y":612,"width":196,"height":10}},{"id":"98e2f5b6-3523-42ad-a982-6a7e03283bad","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":612,"width":8,"height":8}},{"id":"26a38423-d759-407c-8be3-00ddc9e6438c","block_type":"box","text":"Commercial Paper","page_number":12,"box":{"x":73,"y":632,"width":120,"height":10}},{"id":"b605ea48-eb60-4146-9f21-11090323dccb","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":632,"width":8,"height":8}},{"id":"5403adcf-1d70-4846-8427-fc1c5a88bb2f","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments","page_number":12,"box":{"x":73,"y":652,"width":431,"height":10}},{"id":"c02f3271-bae6-40d1-8b70-3c7b3ba99366","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":652,"width":8,"height":8}},{"id":"92a4cfe0-7fcc-43a1-9741-6db1212c28fc","block_type":"box","text":"Qualifying Hybrid Instruments","page_number":12,"box":{"x":83,"y":672,"width":187,"height":10}},{"id":"ba15843d-050b-460f-be1b-c9f91fe483b5","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":673,"width":8,"height":7}},{"id":"a5725865-a84f-44e1-b655-c2c9eb610b3f","block_type":"box","text":"Hybrid Instruments Without Principal Protection X","page_number":12,"box":{"x":83,"y":693,"width":730,"height":9}},{"id":"36834975-10a1-423b-9bbf-123c7dfa46cf","block_type":"box","text":"Limitations on Leverage","page_number":12,"box":{"x":83,"y":713,"width":151,"height":10}},{"id":"54d7c9a6-1125-4e65-9b29-a871c67f1538","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":713,"width":8,"height":8}},{"id":"4eb7531b-4e6d-4f2b-b868-976bfc4d0770","block_type":"box","text":"Counterpar ty Risk","page_number":12,"box":{"x":83,"y":733,"width":114,"height":10}},{"id":"1360ed13-f741-4a2f-be5c-08d6bb39dc8c","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":733,"width":8,"height":8}},{"id":"9c65a397-ae51-481f-bcfc-e3d87e9a6b65","block_type":"box","text":"Convertible Securities","page_number":12,"box":{"x":73,"y":753,"width":145,"height":8}},{"id":"ade24540-bd4a-48ec-a7ac-df281e47163b","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":753,"width":8,"height":8}},{"id":"cbf5220e-4317-433d-aca0-96623bd7e308","block_type":"box","text":"Corporate Loans","page_number":12,"box":{"x":73,"y":773,"width":107,"height":10}},{"id":"cf2bd02b-1403-4caa-a3b3-ba9e310326b7","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":773,"width":8,"height":8}},{"id":"98302b1c-511a-4e6f-b5f6-7ffdde0a9e3d","block_type":"box","text":"Direct Lending","page_number":12,"box":{"x":83,"y":793,"width":91,"height":10}},{"id":"8374cab3-828f-4eda-bdeb-a7cac27a7e15","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":793,"width":8,"height":8}},{"id":"a32eedbf-0f6f-42e8-89d5-d8cfab3d105a","block_type":"box","text":"Credit Linked Securities","page_number":12,"box":{"x":73,"y":814,"width":157,"height":7}},{"id":"dfb48fb9-6bb3-4d56-8c3c-7b5cbe162633","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":814,"width":8,"height":7}},{"id":"0a6cd884-864d-40a0-a723-3ff5fd546cf7","block_type":"box","text":"Debt Securities","page_number":12,"box":{"x":73,"y":834,"width":100,"height":8}},{"id":"38f9e426-a8e3-48af-b61e-2cecdee0c7d9","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":834,"width":8,"height":8}},{"id":"6752134d-b9a9-42b5-af9c-49ea7dc0b852","block_type":"box","text":"Floating and Variable Rate Securities","page_number":12,"box":{"x":83,"y":854,"width":234,"height":10}},{"id":"a210e7c6-7a7d-4827-a496-80e4f1478fa1","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":854,"width":8,"height":8}},{"id":"e1beb129-17f1-4e08-8f4e-33483dd71a1e","block_type":"box","text":"Inflation-Indexed Bonds","page_number":12,"box":{"x":83,"y":874,"width":148,"height":8}},{"id":"8850b7cf-baef-4a82-a1ad-4719cacb71ae","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":874,"width":8,"height":8}},{"id":"c48f9f60-147e-494d-9fe3-76612bbe4f2c","block_type":"box","text":"Investment Grade Debt Obligations","page_number":12,"box":{"x":83,"y":894,"width":223,"height":10}},{"id":"84f34a2e-6a35-4af8-8cdb-c5d3b6820cfc","block_type":"box","text":"X","page_number":12,"box":{"x":805,"y":894,"width":8,"height":8}},{"id":"0e290967-576d-4210-93af-f8e90dbf1dc2","block_type":"box","text":"I-1","page_number":12,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"8b2736cc-7dd5-41ab-8094-e008fb80c481","block_type":"box","text":"NM1026U-5982643-12/241","page_number":12,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"4303fc9f-ad1c-490c-a689-ac2b65006c94","block_type":"box","text":"Strategic Global Bond Fund","page_number":13,"box":{"x":729,"y":50,"width":160,"height":8}},{"id":"10d9b32d-d7b9-4156-9406-a4884ef5ee10","block_type":"box","text":"High Yield Investments (“Junk Bonds”)","page_number":13,"box":{"x":83,"y":69,"width":246,"height":10}},{"id":"22d57016-3c5f-4a37-88ac-5cedb9123a29","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":69,"width":8,"height":8}},{"id":"fd25f60b-d2bd-45f3-9517-1d82884bfdd7","block_type":"box","text":"Mezzanine Investments","page_number":13,"box":{"x":93,"y":89,"width":149,"height":8}},{"id":"378b481a-a047-4280-8046-969670f47d94","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":89,"width":8,"height":8}},{"id":"24aca56c-28cc-441d-9595-cd9277b22641","block_type":"box","text":"Pay-in-kind Bonds","page_number":13,"box":{"x":83,"y":109,"width":110,"height":10}},{"id":"205dcc76-1cfb-4de0-82d4-9b01839cbeed","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":109,"width":8,"height":8}},{"id":"4850626d-472f-47eb-8101-0b950b8c4b3f","block_type":"box","text":"Supranational Entities","page_number":13,"box":{"x":83,"y":129,"width":140,"height":10}},{"id":"cc8792d2-6d00-4791-a0d1-02c9db596808","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":130,"width":8,"height":7}},{"id":"a7f59b4f-c302-4be2-8499-382eb6877149","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs)","page_number":13,"box":{"x":73,"y":150,"width":296,"height":9}},{"id":"53fed231-1753-454d-9a02-010e33bf3afe","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":150,"width":8,"height":7}},{"id":"b307c6dc-df76-479e-9a6f-1b9eebe004f7","block_type":"box","text":"Derivatives","page_number":13,"box":{"x":73,"y":170,"width":72,"height":8}},{"id":"260d1536-1be8-4429-806e-185a9df02322","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":170,"width":8,"height":8}},{"id":"86128773-1001-4099-9310-a62cfedf71fd","block_type":"box","text":"Hedging","page_number":13,"box":{"x":83,"y":190,"width":51,"height":10}},{"id":"8785f700-9190-47b2-82f2-4683252f147b","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":190,"width":8,"height":8}},{"id":"7564c3e6-fef1-4bfe-b35e-882ba825c9df","block_type":"box","text":"Speculation","page_number":13,"box":{"x":83,"y":210,"width":74,"height":10}},{"id":"3dcc16c5-0f4f-4566-ba6b-7cd7c7e422b0","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":210,"width":8,"height":8}},{"id":"ef1e36bc-c34d-476a-a509-0d92755d3f48","block_type":"box","text":"Risk Factors in Derivatives","page_number":13,"box":{"x":83,"y":230,"width":168,"height":8}},{"id":"8b18586f-269d-4bbc-91e7-c6b00a960074","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":230,"width":8,"height":8}},{"id":"5a66b127-6d94-48ab-b5fb-b27cb0819a73","block_type":"box","text":"Correlation Risk","page_number":13,"box":{"x":93,"y":250,"width":101,"height":8}},{"id":"f3d688d1-9b95-4d3a-a68c-9c4dae12fe30","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":250,"width":8,"height":8}},{"id":"2ccfbd1e-844e-4926-82a1-86829c8a9230","block_type":"box","text":"Counterpar ty Risk","page_number":13,"box":{"x":93,"y":271,"width":114,"height":9}},{"id":"7be55fb6-6ced-4ed8-8638-0049d6fed8d2","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":271,"width":8,"height":7}},{"id":"27ff4975-4320-4b0f-ae34-38177eda2f52","block_type":"box","text":"Credit Risk","page_number":13,"box":{"x":93,"y":291,"width":69,"height":8}},{"id":"72a1f4cc-649e-41a0-9c0d-618c5c30b16d","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":291,"width":8,"height":8}},{"id":"f349547b-4c56-403c-a113-b0f3390d7953","block_type":"box","text":"Currency Risk","page_number":13,"box":{"x":93,"y":311,"width":87,"height":10}},{"id":"eb7b6d8f-c7a4-484f-bea8-189f76d9bc3b","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":311,"width":8,"height":8}},{"id":"1e4fb172-ad01-47ff-af5a-b6383cbd78e2","block_type":"box","text":"Illiquidity Risk","page_number":13,"box":{"x":93,"y":331,"width":87,"height":10}},{"id":"551b1fd5-f88c-44cb-a857-fbdfc82c3243","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":331,"width":8,"height":8}},{"id":"6f004718-8664-415c-9181-cb246759c3c8","block_type":"box","text":"Index Risk","page_number":13,"box":{"x":93,"y":351,"width":65,"height":8}},{"id":"54cc0d6d-e076-4e77-98e0-0d13a7301335","block_type":"box","text":"Legal Risk","page_number":13,"box":{"x":93,"y":371,"width":65,"height":10}},{"id":"dcba3f31-d827-4245-8eef-8817f5863f65","block_type":"box","text":"Leverage Risk","page_number":13,"box":{"x":93,"y":392,"width":88,"height":10}},{"id":"07d2b00d-99a5-4385-a146-a4ffe0f11340","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":392,"width":8,"height":7}},{"id":"7fd1b987-e463-42fd-a6b2-2f9fd5da36fa","block_type":"box","text":"Market Risk","page_number":13,"box":{"x":93,"y":412,"width":75,"height":8}},{"id":"e28e5317-f383-46d5-9cd0-1933337caeb7","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":412,"width":8,"height":8}},{"id":"b85f70c0-82f0-492b-9fc7-ac9edd66e80a","block_type":"box","text":"Operational Risk","page_number":13,"box":{"x":93,"y":432,"width":104,"height":10}},{"id":"15141e09-88b9-47dc-8b26-3a41f470bf88","block_type":"box","text":"Valuation Risk","page_number":13,"box":{"x":92,"y":452,"width":90,"height":8}},{"id":"025f07d0-9f07-4e28-a5d1-bfcb8bcea6bd","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":452,"width":8,"height":8}},{"id":"58b401cf-eeeb-4700-b8fb-f531671608fd","block_type":"box","text":"Volatility Risk","page_number":13,"box":{"x":92,"y":472,"width":85,"height":10}},{"id":"fee674fb-3e8f-4e42-a9c7-8c5ff9ae4495","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":472,"width":8,"height":8}},{"id":"6cccc602-d538-4699-8430-a154ba92b5de","block_type":"box","text":"Futures","page_number":13,"box":{"x":83,"y":492,"width":46,"height":8}},{"id":"3ef26509-bea8-4d78-b843-2ab93963dd65","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":492,"width":8,"height":8}},{"id":"0731fe31-cfc7-4036-992a-72588feb7db2","block_type":"box","text":"Swap Agreements","page_number":13,"box":{"x":83,"y":512,"width":114,"height":10}},{"id":"8db34086-90c9-497b-9224-2a5726ded8f8","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":513,"width":8,"height":7}},{"id":"406fba50-76a7-44fc-9f7f-b6a0bdd41d33","block_type":"box","text":"Credit Default Swaps and Similar Instruments X","page_number":13,"box":{"x":93,"y":532,"width":720,"height":10}},{"id":"c75407fd-1441-4a00-91cf-56cf93ed36ba","block_type":"box","text":"Interest Rate Swaps, Floors and Caps","page_number":13,"box":{"x":93,"y":553,"width":241,"height":9}},{"id":"0cff764f-a4e3-440d-a312-1ffabefbbf40","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":553,"width":8,"height":8}},{"id":"628055b6-29b5-4f2a-ae6e-64b98209a013","block_type":"box","text":"Total Return Swaps","page_number":13,"box":{"x":92,"y":573,"width":123,"height":10}},{"id":"497bbd3b-697b-4954-a68e-64200e58b2e9","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":573,"width":8,"height":8}},{"id":"017305dc-a025-4677-b5d4-f9ff29aa6e60","block_type":"box","text":"Options","page_number":13,"box":{"x":83,"y":593,"width":48,"height":10}},{"id":"3814f5bc-ec90-4c24-a091-ee52355f3674","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":593,"width":8,"height":8}},{"id":"e73e6511-03ec-47fb-8782-4d7be3b57c86","block_type":"box","text":"Options on Securities and Securities Indices X","page_number":13,"box":{"x":93,"y":613,"width":720,"height":10}},{"id":"9adf80b9-0080-4abd-8a3b-18edc9e57b8c","block_type":"box","text":"Call Options","page_number":13,"box":{"x":93,"y":633,"width":76,"height":10}},{"id":"74220291-e24d-4466-bc28-4b9c4ba8e00e","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":633,"width":8,"height":8}},{"id":"270b890c-36aa-4538-99d4-a103db75f0f9","block_type":"box","text":"Put Options","page_number":13,"box":{"x":93,"y":653,"width":73,"height":10}},{"id":"8700ec62-ea8b-4838-ad5a-f6b023e08103","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":654,"width":8,"height":7}},{"id":"819fcf94-4bd8-4269-b3d0-db7934ca6aee","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates X","page_number":13,"box":{"x":93,"y":674,"width":720,"height":10}},{"id":"6f32cb81-56da-48d4-bc16-e78929c16321","block_type":"box","text":"Options on Swaps (“Swaptions”)","page_number":13,"box":{"x":93,"y":694,"width":207,"height":10}},{"id":"33a53a8f-3dcd-4c9b-9f57-fec384a8c70e","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":694,"width":8,"height":8}},{"id":"49bf7383-3b1b-4ea5-9c2a-936c337e5dc2","block_type":"box","text":"FLEX Options","page_number":13,"box":{"x":93,"y":714,"width":82,"height":10}},{"id":"20de61b0-33a0-4700-8c04-dfa372e1a198","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":714,"width":8,"height":8}},{"id":"b62a283c-0506-4410-94d0-d7b68f44c316","block_type":"box","text":"Foreign Exchange Transactions","page_number":13,"box":{"x":83,"y":734,"width":196,"height":10}},{"id":"2d20cef2-6b8e-4a48-956f-67acc1f7fa4f","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":734,"width":8,"height":8}},{"id":"4db7f8ab-6a6e-4e0c-9ee9-8ca27812af2c","block_type":"box","text":"Spot Transactions and FX Forwards","page_number":13,"box":{"x":93,"y":754,"width":225,"height":10}},{"id":"7dd9417a-912f-4cea-8ab6-c578800e1b13","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":754,"width":8,"height":8}},{"id":"ba26b8e9-4e73-413a-a694-d71ee52d8dc4","block_type":"box","text":"Currency Futures","page_number":13,"box":{"x":93,"y":774,"width":107,"height":10}},{"id":"c53ef764-5f5b-4938-9026-a395c7157cc2","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":775,"width":8,"height":7}},{"id":"95173d01-ffcc-48ee-a192-64710fe8f74e","block_type":"box","text":"Currency Options","page_number":13,"box":{"x":93,"y":795,"width":108,"height":10}},{"id":"b2264785-b7c8-4162-824a-9e4f082502f3","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":795,"width":8,"height":7}},{"id":"a3c8dffb-a171-4055-9dc4-1f94260cf98e","block_type":"box","text":"Currency Swaps","page_number":13,"box":{"x":93,"y":815,"width":101,"height":10}},{"id":"4bd0437f-3e42-46ac-a0dc-1769120d1e8e","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":815,"width":8,"height":8}},{"id":"c25bad07-06f6-4177-b131-92bd9b41ec49","block_type":"box","text":"Digital Asset Exposure","page_number":13,"box":{"x":73,"y":835,"width":149,"height":10}},{"id":"489a8105-ce4b-4207-ba80-dc7c80e6c2d1","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":835,"width":8,"height":8}},{"id":"aae2349d-d884-47d8-8f19-4c5f097cbd03","block_type":"box","text":"Distressed Securities","page_number":13,"box":{"x":73,"y":855,"width":139,"height":8}},{"id":"6f043384-7377-4aac-9823-c6f28a7fef5c","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":855,"width":8,"height":8}},{"id":"138b01c2-9d3b-442c-a3dc-7a372f4e4c84","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":13,"box":{"x":73,"y":875,"width":384,"height":10}},{"id":"96567b27-7ea0-4cfe-8b3a-2fb569600455","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":875,"width":8,"height":8}},{"id":"465cde98-d91f-4359-a3ed-c805bf76801a","block_type":"box","text":"Equity Securities","page_number":13,"box":{"x":73,"y":895,"width":110,"height":10}},{"id":"46b5b61d-8812-4438-9ec4-1ade006a26c9","block_type":"box","text":"X","page_number":13,"box":{"x":805,"y":896,"width":8,"height":7}},{"id":"0de6a2db-f2b4-4301-945d-7e871486086d","block_type":"box","text":"I-2","page_number":13,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"5b704b44-b4b3-4c12-9118-06c560753f7b","block_type":"box","text":"NM1026U-5982643-13/241","page_number":13,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"ac8b6f5e-d24d-467e-a6f2-2ff9d5ce8177","block_type":"box","text":"Strategic Global Bond Fund","page_number":14,"box":{"x":729,"y":50,"width":160,"height":8}},{"id":"1eff147d-d3a9-45b8-8e28-ed0d4227704d","block_type":"box","text":"Real Estate-Related Securities","page_number":14,"box":{"x":83,"y":69,"width":193,"height":8}},{"id":"39682524-3103-42b6-b695-1da907da6eda","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":69,"width":8,"height":8}},{"id":"7c3e9de3-2a45-4ecd-b4cf-0b7068d3a9b8","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies X","page_number":14,"box":{"x":83,"y":89,"width":730,"height":10}},{"id":"43baeadd-50c1-4018-aca2-eaa4ffcab123","block_type":"box","text":"Tracking Stocks","page_number":14,"box":{"x":82,"y":109,"width":100,"height":10}},{"id":"8bf531c0-b75d-40a1-b9ad-b07d9c6f86b5","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":109,"width":8,"height":8}},{"id":"b03341a2-3b32-4daa-8fa2-0f2230c94951","block_type":"box","text":"Exchange-Traded Notes (“ETNs”)","page_number":14,"box":{"x":73,"y":130,"width":216,"height":9}},{"id":"0b974636-c2db-4af5-a10e-daa60457c71d","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":130,"width":8,"height":7}},{"id":"8112f38e-d9e9-42a2-96a7-6a59bdb628b2","block_type":"box","text":"Foreign Investments","page_number":14,"box":{"x":73,"y":150,"width":133,"height":9}},{"id":"bf823deb-fc2f-4840-b1ff-ca9ea25426d8","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":150,"width":8,"height":7}},{"id":"0c016734-1ca3-4706-9861-7ebdd7ccae9f","block_type":"box","text":"Foreign Investment Risks","page_number":14,"box":{"x":83,"y":170,"width":160,"height":10}},{"id":"5854789c-08f7-4a39-bee6-81440fdfe6e6","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":170,"width":8,"height":8}},{"id":"7a7b539c-ba9d-49d2-a0c9-405aa9c29160","block_type":"box","text":"Foreign Market Risk","page_number":14,"box":{"x":83,"y":190,"width":127,"height":10}},{"id":"7f2fcdd0-8828-4c71-9c4e-d7a1c8aa7101","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":190,"width":8,"height":8}},{"id":"3062581c-5152-4ee1-8a74-a48a06339fb8","block_type":"box","text":"Foreign Economy Risk","page_number":14,"box":{"x":83,"y":210,"width":139,"height":10}},{"id":"ceb1f524-bcc3-40a0-ae35-f319ddc048ae","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":210,"width":8,"height":8}},{"id":"7333f838-3b9c-4cba-8752-e9ca32c40807","block_type":"box","text":"Currency Risk and Exchange Risk","page_number":14,"box":{"x":83,"y":230,"width":212,"height":10}},{"id":"d2790bc8-cdcd-45f2-aa7f-ff3e95501de0","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":230,"width":8,"height":8}},{"id":"3e82dc75-ff4d-42e3-9c52-8ead1de64abc","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards X","page_number":14,"box":{"x":83,"y":250,"width":730,"height":10}},{"id":"9fc2d047-aac4-48db-a2dd-3647543d4ebd","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States X","page_number":14,"box":{"x":83,"y":270,"width":730,"height":11}},{"id":"0392208e-96dd-46c3-bcaf-fbf78de10ea9","block_type":"box","text":"Publicly Available Information","page_number":14,"box":{"x":83,"y":291,"width":185,"height":10}},{"id":"e6d13639-dd23-4e74-beb2-8659851dce40","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":291,"width":8,"height":8}},{"id":"dafcc651-df54-4b7e-9537-1bb0b0c9fdb1","block_type":"box","text":"Settlement Risk","page_number":14,"box":{"x":83,"y":311,"width":101,"height":8}},{"id":"f20f44d7-7eb9-4996-a114-bfd755464a72","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":311,"width":8,"height":8}},{"id":"9c929924-82cf-406c-8b28-b15fbb1b2af1","block_type":"box","text":"Sovereign Debt","page_number":14,"box":{"x":83,"y":331,"width":97,"height":10}},{"id":"8eb1e2d0-4d23-4e81-83f3-559c1cf166bf","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":331,"width":8,"height":8}},{"id":"263a9b55-4709-4e26-88de-194697395dab","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":14,"box":{"x":82,"y":351,"width":194,"height":10}},{"id":"2fd61861-ab8f-4e5b-9d50-49cfef5ca2ef","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":351,"width":8,"height":8}},{"id":"50902bd3-7bd9-4612-8ff9-ef15c93220e5","block_type":"box","text":"U.S. Economic Trading Par tners Risk","page_number":14,"box":{"x":83,"y":371,"width":234,"height":10}},{"id":"6bded357-1edd-4466-b9eb-e13bc590db6e","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":371,"width":8,"height":8}},{"id":"dbc90b5d-8180-4996-828d-77e29b38c5c0","block_type":"box","text":"Funding Agreements","page_number":14,"box":{"x":73,"y":391,"width":134,"height":10}},{"id":"3c47837a-392b-4b23-9f17-9c42a432b217","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":392,"width":8,"height":7}},{"id":"426d78ef-69f5-455f-89af-2ddf2786e44e","block_type":"box","text":"Guarantees","page_number":14,"box":{"x":73,"y":412,"width":74,"height":8}},{"id":"b390fa20-1f9f-40ec-8e93-143a3737de1a","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":412,"width":8,"height":8}},{"id":"cdbf79fd-4a75-4bdd-8178-a3da43b0b62e","block_type":"box","text":"Illiquid Investments","page_number":14,"box":{"x":73,"y":432,"width":128,"height":10}},{"id":"a0759bfe-d186-45fd-b174-8be240651b44","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":432,"width":8,"height":8}},{"id":"ffd9d021-6738-47e3-be4f-e1ce579bd4dd","block_type":"box","text":"Index Funds","page_number":14,"box":{"x":73,"y":452,"width":78,"height":8}},{"id":"c8527cca-a456-4bc4-a88a-9da81f03d61c","block_type":"box","text":"Cash Flows; Expenses","page_number":14,"box":{"x":83,"y":472,"width":142,"height":10}},{"id":"c9451e7d-14e7-44b4-ae40-737b2b6355c3","block_type":"box","text":"Tracking Error Risk","page_number":14,"box":{"x":82,"y":492,"width":120,"height":10}},{"id":"4240c20e-71b6-4503-ae19-755fe27a5a30","block_type":"box","text":"S&P 500 Index","page_number":14,"box":{"x":83,"y":512,"width":96,"height":8}},{"id":"ad2d40f9-ff66-4e09-9730-401c51df0d33","block_type":"box","text":"Russell Indexes","page_number":14,"box":{"x":83,"y":533,"width":100,"height":8}},{"id":"44029444-b3a1-4c3c-8c00-09b278fa4c50","block_type":"box","text":"MSCI Indexes","page_number":14,"box":{"x":83,"y":553,"width":86,"height":8}},{"id":"61e1199a-ade8-4801-b926-1936503f35c2","block_type":"box","text":"FTSE Indexes","page_number":14,"box":{"x":83,"y":573,"width":84,"height":8}},{"id":"7b96083e-b4ae-43d3-9015-19289a1a904e","block_type":"box","text":"Bloomberg Indexes","page_number":14,"box":{"x":83,"y":593,"width":121,"height":10}},{"id":"9efd9be7-375a-41a1-929f-0b96d9785fea","block_type":"box","text":"ICE BofA Indexes","page_number":14,"box":{"x":83,"y":613,"width":108,"height":8}},{"id":"4e2a2204-e1ca-4c48-9fba-afb052d08018","block_type":"box","text":"Indexed and Inverse Securities","page_number":14,"box":{"x":73,"y":633,"width":201,"height":8}},{"id":"7d615f50-e0ad-45bd-b72a-78af564528cb","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":633,"width":8,"height":8}},{"id":"3eafd114-52da-44e4-8810-5960575f087b","block_type":"box","text":"Inflation Risk","page_number":14,"box":{"x":73,"y":653,"width":86,"height":9}},{"id":"24d2640c-ac14-4ae2-b937-7ad7047ca462","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":654,"width":8,"height":7}},{"id":"088c1347-908f-4538-b59a-1577a9646670","block_type":"box","text":"Initial Public Offering (“IPO”) Risk","page_number":14,"box":{"x":73,"y":674,"width":224,"height":10}},{"id":"632e2492-db86-40e5-8cb5-b9a692954d41","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":674,"width":8,"height":8}},{"id":"9ec7448a-7f78-454a-a75c-d967e3654378","block_type":"box","text":"Investment in Emerging Markets","page_number":14,"box":{"x":73,"y":694,"width":214,"height":10}},{"id":"1c203e3a-4c31-4653-9261-3ab80f34a8c0","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":694,"width":8,"height":8}},{"id":"04a1808f-9b04-4582-a01c-eec15e7fbe63","block_type":"box","text":"Brady Bonds","page_number":14,"box":{"x":83,"y":714,"width":79,"height":10}},{"id":"dd473372-845b-4bc9-9633-2c441d610555","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":714,"width":8,"height":8}},{"id":"7ca13156-317c-4d30-b28c-0a35179d41d5","block_type":"box","text":"China Investments Risk","page_number":14,"box":{"x":83,"y":734,"width":150,"height":8}},{"id":"ca011397-9e15-4841-a6b5-4fae48378f0f","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":734,"width":8,"height":8}},{"id":"78faed70-e547-48f1-8b2f-b25c92055bd4","block_type":"box","text":"Investment in Other Investment Companies","page_number":14,"box":{"x":73,"y":754,"width":284,"height":10}},{"id":"7a70432a-0d1f-41d0-b2d0-dd0ba51cc4c5","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":754,"width":8,"height":8}},{"id":"5f55567b-3838-49f0-91fd-ceb231720bff","block_type":"box","text":"Exchange-Traded Funds","page_number":14,"box":{"x":83,"y":775,"width":148,"height":10}},{"id":"172b6547-7eea-4ac6-88e8-80938768fd15","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":775,"width":8,"height":7}},{"id":"a76c457e-4549-45cd-8a8f-7a9ed5a386e2","block_type":"box","text":"Issuer Insolvency Risk","page_number":14,"box":{"x":73,"y":795,"width":146,"height":10}},{"id":"5e5e400e-e9d1-4ae7-8ce8-62bd7cc2d32c","block_type":"box","text":"Lease Obligations","page_number":14,"box":{"x":73,"y":815,"width":116,"height":10}},{"id":"f4330028-2ccd-4946-8a8f-3c8c4ba2b1e4","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":815,"width":8,"height":8}},{"id":"da901a1b-9e22-4dfe-9f9b-5ac8f08b033e","block_type":"box","text":"Life Settlement Investments","page_number":14,"box":{"x":73,"y":835,"width":185,"height":8}},{"id":"368646d2-212b-4dfa-8c93-8631fd4a65af","block_type":"box","text":"Liquidity Risk Management","page_number":14,"box":{"x":73,"y":855,"width":178,"height":10}},{"id":"bf0483fe-3947-4c1f-99ef-50a47ef86aa1","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":855,"width":8,"height":8}},{"id":"c0ed72f9-e420-4a79-8c6e-395a10fdca3f","block_type":"box","text":"Market Risks/Recent Market Events","page_number":14,"box":{"x":73,"y":875,"width":244,"height":10}},{"id":"01c02169-20e2-4092-b5ef-87375945d730","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":875,"width":8,"height":8}},{"id":"7c17cbc7-7173-48bf-9fd1-c643a1257e3a","block_type":"box","text":"Master Limited Partnerships","page_number":14,"box":{"x":73,"y":895,"width":186,"height":10}},{"id":"b30d4d36-a3da-4d09-8552-6fc0a36c7626","block_type":"box","text":"X","page_number":14,"box":{"x":805,"y":896,"width":8,"height":7}},{"id":"40590b2f-67c3-474e-90b6-7aec673c028a","block_type":"box","text":"I-3","page_number":14,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"bdede741-9089-4e14-ba23-fb85bea3e4fb","block_type":"box","text":"NM1026U-5982643-14/241","page_number":14,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"5609b0fd-f474-40bb-9833-4aca01694b4d","block_type":"box","text":"Strategic Global Bond Fund","page_number":15,"box":{"x":729,"y":50,"width":160,"height":8}},{"id":"d783de8b-1bbf-4d58-966c-9db9051fc5c2","block_type":"box","text":"Merger Transaction Risk","page_number":15,"box":{"x":73,"y":69,"width":161,"height":10}},{"id":"c764ae5f-f7fa-43e7-9f21-cca23cb84ee9","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S.","page_number":15,"box":{"x":73,"y":89,"width":600,"height":10}},{"id":"fd5d3a48-4c28-4a04-ac9c-8f13b00cd086","block_type":"box","text":"Banks","page_number":15,"box":{"x":88,"y":103,"width":40,"height":8}},{"id":"b14ced8e-d2c1-44ab-affb-a90f699985c5","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":103,"width":8,"height":8}},{"id":"5dda92bd-d935-45d8-9b69-75979ac0b2a9","block_type":"box","text":"Money Market Securities","page_number":15,"box":{"x":73,"y":123,"width":165,"height":10}},{"id":"d24fa275-88a9-4928-941c-08b7d1cc71e0","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":123,"width":8,"height":8}},{"id":"2c8d2e56-f893-46da-bf13-d23480929ea1","block_type":"box","text":"Mortgage-Related Securities","page_number":15,"box":{"x":73,"y":143,"width":188,"height":10}},{"id":"b4f3370a-5494-4462-8c7e-e9f6a9625409","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":143,"width":8,"height":8}},{"id":"2a4f9ea1-87d0-4684-b365-62e654c3006f","block_type":"box","text":"Mor tgage-Backed Securities","page_number":15,"box":{"x":83,"y":163,"width":178,"height":10}},{"id":"8bedffff-80e2-4eab-9920-cbb75cedc92a","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":164,"width":8,"height":7}},{"id":"9a065cc5-d6bb-4518-89d0-23ec65daeaed","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”) X","page_number":15,"box":{"x":83,"y":184,"width":730,"height":10}},{"id":"37331573-1edb-4307-8cca-f1a3788275bf","block_type":"box","text":"Adjustable Rate Mor tgage Securities","page_number":15,"box":{"x":82,"y":204,"width":234,"height":10}},{"id":"b33cc2e9-6174-4838-868d-dfcec387e1d0","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":204,"width":8,"height":8}},{"id":"9d0358c1-ccd1-4a6e-b35c-35085a0afc9a","block_type":"box","text":"CMO Residuals","page_number":15,"box":{"x":83,"y":224,"width":97,"height":8}},{"id":"0bf95063-dcd7-48e0-8713-0e3e2a52891a","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":224,"width":8,"height":8}},{"id":"c746d15b-ef8b-4360-8155-b5efd90647b3","block_type":"box","text":"Stripped Mor tgage-Backed Securities","page_number":15,"box":{"x":83,"y":244,"width":237,"height":10}},{"id":"4e1f13e5-1fca-48c6-bed8-c7dce59bc23b","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":244,"width":8,"height":8}},{"id":"b3142e21-e21a-4b93-8e5b-26ddbadcc4aa","block_type":"box","text":"Tiered Index Bonds","page_number":15,"box":{"x":82,"y":264,"width":122,"height":8}},{"id":"4f716079-8f3e-4e3c-9524-aa032c506935","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":264,"width":8,"height":8}},{"id":"cab6fa64-6daa-4bfe-b81c-733402827f91","block_type":"box","text":"TBA Commitments","page_number":15,"box":{"x":82,"y":284,"width":118,"height":8}},{"id":"1940c3e5-ebfd-40ab-855b-1f5a34bfa7df","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":284,"width":8,"height":8}},{"id":"b9065afa-6286-4b04-8c57-feddfad18b82","block_type":"box","text":"Mor tgage Dollar Rolls","page_number":15,"box":{"x":83,"y":305,"width":137,"height":10}},{"id":"c12d9b40-6454-4857-923c-41838a14b4c0","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":305,"width":8,"height":7}},{"id":"76c3d929-81d9-4c04-bb7a-e77a2f56cad5","block_type":"box","text":"Net Interest Margin (NIM) Securities","page_number":15,"box":{"x":83,"y":325,"width":230,"height":10}},{"id":"b3b3b339-d3c5-4862-9fba-c321afd75bac","block_type":"box","text":"Municipal Investments","page_number":15,"box":{"x":73,"y":345,"width":148,"height":10}},{"id":"9e9fd394-fa5e-43ae-9d05-69844ac8d32e","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":345,"width":8,"height":8}},{"id":"d27c661a-068d-459c-9ea2-fa37c6af03b7","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds X","page_number":15,"box":{"x":83,"y":365,"width":730,"height":10}},{"id":"e177e330-f97c-4873-9d3a-842e2ab26a14","block_type":"box","text":"Description of Municipal Bonds","page_number":15,"box":{"x":83,"y":385,"width":198,"height":10}},{"id":"deb01f9b-0704-4cca-b94e-caae80d553f3","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":385,"width":8,"height":8}},{"id":"1787ba71-6c55-407c-95ca-2d0e4a8a3c29","block_type":"box","text":"General Obligation Bonds","page_number":15,"box":{"x":93,"y":405,"width":161,"height":10}},{"id":"57f84d8c-13b5-48f9-9b1a-8532a0aa69d9","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":405,"width":8,"height":8}},{"id":"cc32a93c-6eaf-4d09-96a4-d20aca9a972d","block_type":"box","text":"Revenue Bonds","page_number":15,"box":{"x":93,"y":426,"width":98,"height":7}},{"id":"fd7115f6-5e1f-48b0-8123-56271bc12ad9","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":426,"width":8,"height":7}},{"id":"b8803287-ce42-476f-8acd-d3cc29c2dfc1","block_type":"box","text":"Private Activity Bonds (“PABs”)","page_number":15,"box":{"x":93,"y":446,"width":194,"height":10}},{"id":"b39843f8-5ec5-465e-b3af-9434d6ca50fb","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":446,"width":8,"height":8}},{"id":"e25e2b38-9c23-4607-9d3f-996b7e160c0c","block_type":"box","text":"Moral Obligation Bonds","page_number":15,"box":{"x":93,"y":466,"width":148,"height":10}},{"id":"9a887dcb-6c32-45ab-bdc8-f97a316501a4","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":466,"width":8,"height":8}},{"id":"7667cfec-ccff-4e80-b5d9-a093e3e6f93c","block_type":"box","text":"Municipal Notes","page_number":15,"box":{"x":93,"y":486,"width":102,"height":10}},{"id":"53814c67-c048-4d59-bebc-1a8fbe33a9b4","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":486,"width":8,"height":8}},{"id":"e15d8be7-45bb-40ad-9480-1ca8c935ddd7","block_type":"box","text":"Municipal Commercial Paper","page_number":15,"box":{"x":93,"y":506,"width":182,"height":10}},{"id":"e1a831cd-c3c5-4d2f-9470-2cecf3ff2130","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":506,"width":8,"height":8}},{"id":"a8a85f21-77b6-4352-9145-6bc1e9e1db86","block_type":"box","text":"Municipal Lease Obligations","page_number":15,"box":{"x":93,"y":526,"width":179,"height":10}},{"id":"c321db96-a090-4614-acdd-5c840179b558","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":526,"width":8,"height":8}},{"id":"48277339-c6ce-4a38-9917-308a869b6bec","block_type":"box","text":"Tender Option Bonds","page_number":15,"box":{"x":92,"y":546,"width":133,"height":10}},{"id":"d8c15ab5-2af8-4037-859c-875ccfa4b2dd","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":547,"width":8,"height":7}},{"id":"93e79d70-07aa-4823-b974-bb11e030a938","block_type":"box","text":"Yields","page_number":15,"box":{"x":92,"y":567,"width":38,"height":8}},{"id":"0894c52b-0c8b-4f43-981d-667fb5b582db","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":567,"width":8,"height":7}},{"id":"b99f2379-d702-42b5-bffc-d4ce2b6bac89","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”) X","page_number":15,"box":{"x":92,"y":587,"width":721,"height":10}},{"id":"299f4f24-dd1e-4de4-ab9b-5748b73e60fa","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes X","page_number":15,"box":{"x":92,"y":607,"width":721,"height":10}},{"id":"f8399758-ba56-4522-b926-133099c2414d","block_type":"box","text":"Call Rights","page_number":15,"box":{"x":93,"y":627,"width":67,"height":10}},{"id":"8d86bf06-f9e2-4f0d-a75c-07308dde21a4","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":627,"width":8,"height":8}},{"id":"cfcaf02f-12f1-405a-b1f4-d3ef5be779d1","block_type":"box","text":"Municipal Interest Rate Swap Transactions X","page_number":15,"box":{"x":93,"y":647,"width":720,"height":10}},{"id":"45f7dc71-2974-4f27-818f-0da10cf6fa3b","block_type":"box","text":"Insured Municipal Bonds","page_number":15,"box":{"x":93,"y":667,"width":157,"height":10}},{"id":"ec8f8cac-9904-4c84-9eaf-b2c7a7b02585","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":667,"width":8,"height":8}},{"id":"ea0ef4ce-a47b-497a-9659-88c75c91b523","block_type":"box","text":"Build America Bonds","page_number":15,"box":{"x":93,"y":688,"width":131,"height":8}},{"id":"680fa832-aea2-4ea4-b8df-c37c20105137","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":688,"width":8,"height":7}},{"id":"de327f45-593a-4106-9bed-ed5e6dfbb237","block_type":"box","text":"Tax-Exempt Municipal Investments","page_number":15,"box":{"x":82,"y":708,"width":219,"height":9}},{"id":"8619f600-7e15-4a76-be29-1cce6940342c","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":708,"width":8,"height":8}},{"id":"74d05254-c9fe-4ee8-9828-b6417c8c0075","block_type":"box","text":"Operational and Technology Risks","page_number":15,"box":{"x":73,"y":728,"width":221,"height":10}},{"id":"2a1ee236-1053-4c1d-a388-35844375d3ff","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":728,"width":8,"height":8}},{"id":"87f15053-6580-47c7-a6e9-2b32d66ea278","block_type":"box","text":"Participation Notes","page_number":15,"box":{"x":73,"y":748,"width":127,"height":10}},{"id":"73659bb3-ab66-44b3-b09d-64b099ee64e2","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":748,"width":8,"height":8}},{"id":"9b7f09d0-f956-4fed-8678-2d70679c01dc","block_type":"box","text":"Portfolio Turnover Rates","page_number":15,"box":{"x":73,"y":768,"width":159,"height":8}},{"id":"7230e057-3422-4222-befc-e26ef86ceabd","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":768,"width":8,"height":8}},{"id":"00db1039-8db3-45b7-8fc5-05b1ba72e163","block_type":"box","text":"Preferred Stock","page_number":15,"box":{"x":73,"y":788,"width":103,"height":8}},{"id":"294d865f-ea23-416d-a834-1c4416bd53f0","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":788,"width":8,"height":8}},{"id":"87e91f58-f6cf-4ffa-8439-e3fc1319a4b5","block_type":"box","text":"Tax-Exempt Preferred Shares","page_number":15,"box":{"x":82,"y":808,"width":184,"height":10}},{"id":"9a59151a-5cc0-47ea-b829-63ec646612e5","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":809,"width":8,"height":7}},{"id":"842c6632-5b7e-4d31-9209-54f20dd0f62f","block_type":"box","text":"Trust Preferred Securities","page_number":15,"box":{"x":82,"y":828,"width":164,"height":9}},{"id":"118eb8a7-e6d6-4e5a-94b8-18d009e3d9d6","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":829,"width":8,"height":8}},{"id":"2501ac6f-a2ee-4c7a-a191-dea81b5bea2d","block_type":"box","text":"Proxy Voting Policies","page_number":15,"box":{"x":73,"y":849,"width":138,"height":10}},{"id":"4e7f6630-7dd5-4dc3-a557-3b5cd1d11935","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":15,"box":{"x":83,"y":869,"width":414,"height":10}},{"id":"db56b31e-58cc-4f44-8b0c-eb15a55b7789","block_type":"box","text":"X","page_number":15,"box":{"x":805,"y":869,"width":8,"height":8}},{"id":"01fed015-790c-4c72-8845-6495379f799f","block_type":"box","text":"BlackRock Active Investment Stewardship Climate and Decarbonization Stewardship","page_number":15,"box":{"x":93,"y":889,"width":538,"height":10}},{"id":"558b8beb-d9e5-4642-a2fb-ffed90e88e52","block_type":"box","text":"Guidelines","page_number":15,"box":{"x":102,"y":900,"width":67,"height":8}},{"id":"f59350a3-1d06-4446-a8c2-9ac42d477206","block_type":"box","text":"I-4","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"28ea3e59-da10-4803-b176-7ab74979f409","block_type":"box","text":"NM1026U-5982643-15/241","page_number":15,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"66231d62-f052-40bc-86db-e39d5090f9c8","block_type":"box","text":"Strategic Global Bond Fund","page_number":16,"box":{"x":729,"y":50,"width":160,"height":8}},{"id":"c1c7cbd1-0bc6-4574-b4de-862fc543ecc4","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":16,"box":{"x":83,"y":69,"width":233,"height":10}},{"id":"0ed80a03-67dd-4bdd-ba57-8af8d89cdd14","block_type":"box","text":"BlackRock Investment Stewardship Climate and Decarbonization Stewardship Guidelines","page_number":16,"box":{"x":93,"y":89,"width":567,"height":10}},{"id":"8e4896d2-c3c9-4ef1-8783-88a5165b39a8","block_type":"box","text":"Real Estate Investment Trusts (“REITs”)","page_number":16,"box":{"x":73,"y":109,"width":265,"height":10}},{"id":"97de3c6d-9898-4a14-b49e-7c23ac054227","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":109,"width":8,"height":8}},{"id":"b4450d72-23be-483c-84ee-a51199ffdec9","block_type":"box","text":"Reference Rate Replacement Risk","page_number":16,"box":{"x":73,"y":129,"width":226,"height":10}},{"id":"89bce679-6b69-45ef-b569-fca16febe2b8","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":130,"width":8,"height":7}},{"id":"9f42a0a4-c355-46ff-8113-30c7b8a5dbdb","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts","page_number":16,"box":{"x":73,"y":150,"width":385,"height":9}},{"id":"98d36b5a-e0a4-45ef-b9bf-dcefd0193bc5","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":150,"width":8,"height":7}},{"id":"d39eae7b-810f-42a0-8238-eef698fc8666","block_type":"box","text":"Restricted Securities","page_number":16,"box":{"x":73,"y":170,"width":138,"height":8}},{"id":"e370ea48-1f2f-4f72-a4bb-8ef675ad7c23","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":170,"width":8,"height":8}},{"id":"5dc1ad32-83c9-4857-ba51-8b0a961ff2ef","block_type":"box","text":"Reverse Repurchase Agreements","page_number":16,"box":{"x":73,"y":190,"width":218,"height":10}},{"id":"82963db8-ff00-432d-8203-9e808e6053e3","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":190,"width":8,"height":8}},{"id":"884cec28-167a-41c7-ba2e-9635730fc3a0","block_type":"box","text":"Rights Offerings and Warrants to Purchase","page_number":16,"box":{"x":73,"y":210,"width":281,"height":10}},{"id":"62e3d373-06fd-40ef-9a14-1d54fcb9e154","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":210,"width":8,"height":8}},{"id":"ceb06b1b-f95c-4224-8623-3205066ceee3","block_type":"box","text":"Rule 144A Securities","page_number":16,"box":{"x":73,"y":230,"width":139,"height":8}},{"id":"59390a04-c72f-4080-9f50-838140479545","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":230,"width":8,"height":8}},{"id":"431c8654-7fff-4288-be5b-f5e8b798a6a2","block_type":"box","text":"Securities Lending","page_number":16,"box":{"x":72,"y":250,"width":122,"height":10}},{"id":"19bef5d1-ed85-4bf3-a58f-20a4a9dc0052","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":250,"width":8,"height":8}},{"id":"69c57173-984b-4ba9-b00b-a813044a891f","block_type":"box","text":"Short Sales","page_number":16,"box":{"x":72,"y":271,"width":76,"height":8}},{"id":"5af1ca69-10ef-49d4-89db-da367f460de6","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":271,"width":8,"height":7}},{"id":"da0baae0-2979-4b4a-a9bc-8c1bd0c3c564","block_type":"box","text":"Special Purpose Acquisition Companies","page_number":16,"box":{"x":72,"y":291,"width":260,"height":9}},{"id":"f039172d-c3c6-458d-863a-360309776a5b","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":291,"width":8,"height":8}},{"id":"0d877459-0335-471e-8d91-d042073d3070","block_type":"box","text":"Standby Commitment Agreements","page_number":16,"box":{"x":72,"y":311,"width":226,"height":10}},{"id":"c258039e-2b8a-4ef1-9f77-f4b35f12ca9f","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":311,"width":8,"height":8}},{"id":"0892a8e0-ecd2-4e98-a728-ffec4bc35ad7","block_type":"box","text":"Stripped Securities","page_number":16,"box":{"x":72,"y":331,"width":125,"height":10}},{"id":"878550f1-8598-4f06-952f-8d5782e16e7b","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":331,"width":8,"height":8}},{"id":"1077f748-5362-4a18-97d4-6ee4fa927f95","block_type":"box","text":"Structured Notes","page_number":16,"box":{"x":72,"y":351,"width":113,"height":8}},{"id":"50500e3d-666a-44d1-85a5-7671b7443e4a","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":351,"width":8,"height":8}},{"id":"f2ac9149-b48e-42dd-9d0e-9a6da0688843","block_type":"box","text":"Taxability Risk","page_number":16,"box":{"x":73,"y":371,"width":95,"height":10}},{"id":"c7414d0b-2b9d-4e27-a765-de0f484a70e8","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":371,"width":8,"height":8}},{"id":"58bd7ba7-78c2-46cb-9e69-e390c8c95e6b","block_type":"box","text":"Temporary Defensive Measures","page_number":16,"box":{"x":73,"y":391,"width":204,"height":10}},{"id":"c566ff7f-7bf8-4cdf-9ed6-c757aa51d8b7","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":392,"width":8,"height":7}},{"id":"30353651-9622-4194-b963-2f5b85cbecf0","block_type":"box","text":"U.S. Government Obligations","page_number":16,"box":{"x":73,"y":412,"width":188,"height":10}},{"id":"3cd7ef82-05a9-4a58-a78a-b31d2e02b970","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":412,"width":8,"height":8}},{"id":"a0a29936-3eca-45f5-9ca3-fe79b2acc4d3","block_type":"box","text":"U.S. Treasury Obligations","page_number":16,"box":{"x":83,"y":432,"width":161,"height":10}},{"id":"10717de9-216b-46a9-b0a4-f7cb3920b7d7","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":432,"width":8,"height":8}},{"id":"65c93759-b42c-4bac-b4fa-5737b646cbd9","block_type":"box","text":"U.S. Treasury Rolls","page_number":16,"box":{"x":73,"y":452,"width":124,"height":10}},{"id":"609a2b4d-faea-4007-b642-c6b9cd4b9381","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":452,"width":8,"height":8}},{"id":"418fae8d-428c-4d01-bf1b-3707d463b3c3","block_type":"box","text":"Utility Industries","page_number":16,"box":{"x":73,"y":472,"width":108,"height":10}},{"id":"284d7118-03a1-4198-adc4-439e645cc061","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":472,"width":8,"height":8}},{"id":"0e145d7e-496b-4cb1-99b2-0eead63a5c55","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments","page_number":16,"box":{"x":72,"y":492,"width":524,"height":10}},{"id":"3d960346-2ef7-4845-b1ad-4132ba693ecd","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":492,"width":8,"height":8}},{"id":"de7f4eb8-f933-4eee-a2a1-7cad45ba65fc","block_type":"box","text":"Yields and Ratings","page_number":16,"box":{"x":72,"y":512,"width":123,"height":10}},{"id":"25fbb4b1-d328-4825-b0ae-313551a83c19","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":513,"width":8,"height":7}},{"id":"ac8f98cd-25ee-4896-a64c-6280d311dbd0","block_type":"box","text":"Zero Coupon Securities","page_number":16,"box":{"x":73,"y":533,"width":154,"height":9}},{"id":"70ec6a48-ee1e-4ff9-89ef-52b37b26f8fb","block_type":"box","text":"X","page_number":16,"box":{"x":805,"y":533,"width":8,"height":7}},{"id":"ee50d8e3-1a06-4b1c-b993-99f14bf3cda6","block_type":"box","text":"The investment objective of the Fund is to seek high current income by investing in a global por tfolio of fixed","page_number":16,"box":{"x":101,"y":556,"width":777,"height":11}},{"id":"f3bb748a-9964-4850-a81d-c7bd80992ea9","block_type":"box","text":"income securities denominated in various currencies, including multinational currency units. The investment objective","page_number":16,"box":{"x":70,"y":571,"width":836,"height":12}},{"id":"a129c088-f69a-4de3-9392-8a0f2e852869","block_type":"box","text":"is a fundamental policy of the Fund that may not be changed without the approval of a majority of the Fund’s","page_number":16,"box":{"x":70,"y":586,"width":771,"height":12}},{"id":"ec6e3141-685d-4856-a1c2-158b82363877","block_type":"box","text":"outstanding voting securities as defined in the Investment Company Act.","page_number":16,"box":{"x":69,"y":601,"width":514,"height":12}},{"id":"be418f28-6275-4b6a-9499-c13a2fe7d76d","block_type":"box","text":"The Fund mainly invests in bonds and other fixed income securities that periodically pay interest or dividends.","page_number":16,"box":{"x":101,"y":624,"width":781,"height":11}},{"id":"5b53945f-7b16-4653-a914-9448391f49a2","block_type":"box","text":"Fixed income securities are securities that represent an obligation by the issuer to pay a specified rate of interest or","page_number":16,"box":{"x":70,"y":639,"width":829,"height":12}},{"id":"46db51c9-13bd-4862-af70-ef67debb4388","block_type":"box","text":"dividend at specified times. These securities may be denominated and pay interest in U.S. dollars or other currencies","page_number":16,"box":{"x":69,"y":654,"width":837,"height":12}},{"id":"9c1e9409-4ac1-431c-b7a4-2f9e96321d60","block_type":"box","text":"and may be issued by U.S. or foreign governments or corporations.","page_number":16,"box":{"x":69,"y":669,"width":475,"height":12}},{"id":"e258a3c4-9aff-4d6e-94d6-a6215e51e625","block_type":"box","text":"The Fund will spread its investments among different types of fixed income securities and different countries","page_number":16,"box":{"x":101,"y":692,"width":777,"height":11}},{"id":"6433863d-a8be-429b-9258-e813cab012be","block_type":"box","text":"based upon BlackRock’s analysis of the yield, maturity and currency considerations affecting these securities. The","page_number":16,"box":{"x":69,"y":707,"width":816,"height":12}},{"id":"85d13c6f-773a-40b7-9a5c-66b13f650618","block_type":"box","text":"Fund may invest in U.S. and foreign government and corporate fixed income securities, including junk bonds and","page_number":16,"box":{"x":70,"y":722,"width":799,"height":12}},{"id":"a2d8a880-0f42-427f-b93b-80ad9f4fc23a","block_type":"box","text":"unrated securities. The Fund normally will invest at least 80% of its net assets plus any borrowings for investment","page_number":16,"box":{"x":69,"y":738,"width":813,"height":11}},{"id":"dc087d60-5424-476c-a967-e52b9bf730c6","block_type":"box","text":"purposes in bonds and related derivative instruments with similar economic characteristics. For the purposes of this","page_number":16,"box":{"x":70,"y":753,"width":828,"height":11}},{"id":"375429ec-a2c2-4f9b-94f4-5ace5359d1b1","block_type":"box","text":"strategy, “bonds” include the following: obligations issued or guaranteed by the U.S. Government or a foreign","page_number":16,"box":{"x":69,"y":768,"width":777,"height":11}},{"id":"4b164a46-dfd2-490b-843f-bfe4dc4d09be","block_type":"box","text":"government or their agencies, instrumentalities or political subdivisions; mor tgage-backed securities, including","page_number":16,"box":{"x":68,"y":783,"width":790,"height":11}},{"id":"a877f7f4-144b-4a3d-9119-4747b326a58c","block_type":"box","text":"agency mor tgage pass-through securities and commercial mor tgage-backed securities; mor tgage to-be-announced","page_number":16,"box":{"x":69,"y":798,"width":812,"height":11}},{"id":"f67d9d47-dea1-4c74-b7b3-9f52abf85649","block_type":"box","text":"(“TBA”) securities; debt obligations of U.S. or foreign issuers; municipal securities; and asset-backed securities. The","page_number":16,"box":{"x":69,"y":813,"width":830,"height":11}},{"id":"2947c350-296d-439d-aec6-06c4986f08de","block_type":"box","text":"Fund’s investments in derivatives will be counted toward the Fund’s 80% policy to the extent that they provide","page_number":16,"box":{"x":70,"y":828,"width":781,"height":11}},{"id":"9bc3e002-12f1-4fc6-8e27-9c89ac435e1a","block_type":"box","text":"investment exposure to the securities included within that policy or to one or more market risk factors associated","page_number":16,"box":{"x":70,"y":843,"width":807,"height":12}},{"id":"8c33b31d-55a2-459b-bb96-f8f07bd45cca","block_type":"box","text":"with such securities. The Fund may invest up to 100% of its assets in securities classified as junk bonds.","page_number":16,"box":{"x":68,"y":858,"width":752,"height":12}},{"id":"4fcbc2fe-85da-44af-a631-5b0099ad0621","block_type":"box","text":"Under normal circumstances, the Fund anticipates it will allocate a substantial amount (approximately 40% or","page_number":16,"box":{"x":102,"y":881,"width":781,"height":11}},{"id":"83ca4893-7b15-4641-8797-ec22a052609b","block_type":"box","text":"more — unless market conditions are not deemed favorable by BlackRock, in which case the Fund would invest at","page_number":16,"box":{"x":69,"y":896,"width":814,"height":11}},{"id":"b0f15d3a-ba5a-4779-96b9-19861f8fd885","block_type":"box","text":"least 30%) of its total assets in securities (i) of foreign government issuers, (ii) of issuers organized or located","page_number":16,"box":{"x":70,"y":911,"width":785,"height":12}},{"id":"b1ae0d94-eaaf-4dc1-8b59-cd90ce7f8378","block_type":"box","text":"I-5","page_number":16,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"98df15ed-c751-4fd4-8636-c49fc8e0d2fe","block_type":"box","text":"NM1026U-5982643-16/241","page_number":16,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"69142efd-ac03-44f0-80a7-a1fa0a7f569e","block_type":"box","text":"outside the U.S., (iii) of issuers which primarily trade in a market located outside the U.S., or (iv) of issuers doing a","page_number":17,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"53ac7c91-5fc6-419a-9d46-839631054b93","block_type":"box","text":"substantial amount of business outside the U.S., which the Fund considers to be companies that derive at least 50%","page_number":17,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"eb3f37a4-16fd-4622-9526-c77cc06d484e","block_type":"box","text":"of their revenue or profits from business outside the U.S. or have at least 50% of their sales or assets outside the","page_number":17,"box":{"x":69,"y":75,"width":816,"height":11}},{"id":"898b4127-df6b-4523-8db5-3204e3a654b2","block_type":"box","text":"U.S. The Fund will allocate its assets among various regions and countries, including the United States (but in no","page_number":17,"box":{"x":70,"y":90,"width":805,"height":11}},{"id":"6cc15e00-854a-4716-91c5-74e750cdb314","block_type":"box","text":"less than three different countries). For temporary defensive purposes the Fund may deviate very substantially from","page_number":17,"box":{"x":70,"y":105,"width":824,"height":11}},{"id":"68746968-ba95-4155-b2bf-3036eae4353e","block_type":"box","text":"the allocation described above.","page_number":17,"box":{"x":68,"y":120,"width":222,"height":9}},{"id":"4284d93c-8a96-4ed3-8883-5dd3a5487366","block_type":"box","text":"The Fund may invest in securities of any maturity or duration. The average maturity of the Fund’s por tfolio","page_number":17,"box":{"x":101,"y":143,"width":752,"height":11}},{"id":"379ad6c2-d61c-4bd6-a189-c25b14493448","block_type":"box","text":"securities will vary based upon BlackRock’s view of economic and market conditions. However, the Fund does not","page_number":17,"box":{"x":69,"y":158,"width":811,"height":11}},{"id":"b7d3a310-dbfd-4e9b-aec2-e13c58198ed2","block_type":"box","text":"expect the average maturity of its por tfolio to exceed fifteen years.","page_number":17,"box":{"x":69,"y":173,"width":473,"height":11}},{"id":"baadddb4-0a0d-4b5e-8809-41c0cd313cfc","block_type":"box","text":"Fund management presently expects that the Fund will invest primarily in securities denominated in the","page_number":17,"box":{"x":102,"y":196,"width":735,"height":11}},{"id":"2d6c7552-8955-441b-bd5b-ce70692e03e5","block_type":"box","text":"currencies represented in the Bloomberg Global Aggregate Bond Index, but the Fund also can invest in securities","page_number":17,"box":{"x":69,"y":211,"width":804,"height":11}},{"id":"1405066d-c2cf-4d0e-8c28-b44cad03e7cb","block_type":"box","text":"denominated in other currencies. Issuers of securities may not always be located in the country in whose currency","page_number":17,"box":{"x":69,"y":226,"width":816,"height":11}},{"id":"5578beea-ae9c-4f4e-9604-fc46d7f11ebc","block_type":"box","text":"the securities are denominated. For example, the Fund may invest in a security denominated in U.S. dollars but","page_number":17,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"4fe7a43a-6e8d-4fdc-aa27-53032c8b4d3b","block_type":"box","text":"issued by a government or corporation located in a country commonly considered to be an emerging market. The","page_number":17,"box":{"x":70,"y":257,"width":802,"height":11}},{"id":"4077e6da-a7c1-49a6-8dcc-2a46fcb5e403","block_type":"box","text":"Fund’s investments ordinarily will be denominated in at least three currencies. No set por tion of the Fund’s","page_number":17,"box":{"x":70,"y":271,"width":764,"height":12}},{"id":"dfb538b4-e218-4498-8b5d-ca0e5e41c9f5","block_type":"box","text":"investments is required to be denominated in any par ticular currency. Substantially all of the Fund’s investments may","page_number":17,"box":{"x":70,"y":286,"width":837,"height":12}},{"id":"97db02a9-bdc9-4ecf-87e0-c9a2effda004","block_type":"box","text":"be denominated in a single currency, including U.S. dollars.","page_number":17,"box":{"x":69,"y":302,"width":421,"height":11}},{"id":"97b5215b-5112-4316-b398-219ab616a182","block_type":"box","text":"The Fund may invest in several different kinds of securities issued by the U.S. Government. These include U.S.","page_number":17,"box":{"x":101,"y":324,"width":790,"height":11}},{"id":"93728c3b-00b4-4d10-9a36-68c47ed98dde","block_type":"box","text":"Treasury obligations (bills, notes and bonds) that have different interest rates and maturities and are issued at","page_number":17,"box":{"x":68,"y":339,"width":794,"height":12}},{"id":"2f37c041-a820-4774-a8f4-b2ca23f71624","block_type":"box","text":"different times. These securities are backed by the full faith and credit of the U.S. Government. The Fund also may","page_number":17,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"9a17885f-9945-45bc-8ceb-76c02e027351","block_type":"box","text":"invest in obligations issued or guaranteed by U.S. Government agencies or other U.S. Government organizations.","page_number":17,"box":{"x":70,"y":370,"width":803,"height":11}},{"id":"b7c3e731-f80a-489f-b966-3350d0378964","block_type":"box","text":"These include but are not limited to government guaranteed mor tgage-related or asset-backed securities. Some of","page_number":17,"box":{"x":68,"y":385,"width":816,"height":11}},{"id":"3fd59865-8cf7-4d14-8775-399683ae8b0d","block_type":"box","text":"these securities may be backed by the full faith and credit of the U.S. Treasury, some may be suppor ted by the right","page_number":17,"box":{"x":68,"y":400,"width":829,"height":11}},{"id":"66b6c0bf-451b-4394-8b01-4dc2df162bd6","block_type":"box","text":"of the issuer to borrow from the U.S. Treasury, and some are backed only by the credit of the issuer itself.","page_number":17,"box":{"x":69,"y":415,"width":756,"height":11}},{"id":"f91c1ff0-1053-4005-80f8-40b3ef8b082d","block_type":"box","text":"The obligations of foreign governments and their related organizations have various kinds of government","page_number":17,"box":{"x":101,"y":438,"width":745,"height":11}},{"id":"43008762-38c6-467f-a1b2-68144e5df196","block_type":"box","text":"suppor t. These obligations may or may not be suppor ted by the full faith and credit of a foreign government. The","page_number":17,"box":{"x":69,"y":453,"width":802,"height":11}},{"id":"38947ac6-bb8c-4967-adf7-6b49b22b7093","block_type":"box","text":"Fund may invest in securities issued by international organizations designated or suppor ted by governments or","page_number":17,"box":{"x":70,"y":468,"width":789,"height":11}},{"id":"087c8ae3-99da-4681-826f-dc0caa7f6b87","block_type":"box","text":"government agencies to promote economic reconstruction or development. Examples of these organizations include","page_number":17,"box":{"x":68,"y":483,"width":828,"height":11}},{"id":"8923362c-2c2d-441b-ade1-b62b77cb6ecc","block_type":"box","text":"the International Bank for Reconstruction and Development (the World Bank), the European Coal and Steel","page_number":17,"box":{"x":68,"y":498,"width":760,"height":11}},{"id":"1c1a50d4-1045-447f-bb2f-00dc14f4b251","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank.","page_number":17,"box":{"x":69,"y":513,"width":601,"height":11}},{"id":"d14749b3-18d5-4f65-978d-32c5dd1bc699","block_type":"box","text":"The debt securities in which the Fund invests may include credit-linked notes, credit-linked trust cer tificates,","page_number":17,"box":{"x":101,"y":536,"width":770,"height":11}},{"id":"b18dc247-d5ff-44ac-88b6-0e97b7017dc7","block_type":"box","text":"structured notes or other instruments evidencing interests in special purpose vehicles, trusts or other entities that","page_number":17,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"a9bf5775-e6d1-4c59-9922-6d1a28794f58","block_type":"box","text":"hold or represent interests in debt securities.","page_number":17,"box":{"x":69,"y":566,"width":322,"height":11}},{"id":"718164fe-f0e4-40ab-be49-9f354a895cc7","block_type":"box","text":"The Fund may invest in corporate loans. Corporate loans are direct obligations of U.S. or foreign corporations","page_number":17,"box":{"x":101,"y":589,"width":777,"height":11}},{"id":"e82c7631-a98d-440f-b230-86d40b1c08d3","block_type":"box","text":"that are purchased by the Fund in the secondary market.","page_number":17,"box":{"x":68,"y":604,"width":405,"height":11}},{"id":"238f6713-1812-48ad-bae3-18f137473e2b","block_type":"box","text":"The Fund may use a variety of por tfolio strategies to hedge its por tfolio against interest rate and currency risk, or","page_number":17,"box":{"x":101,"y":627,"width":808,"height":11}},{"id":"128515c9-b141-467c-9b28-e9c37c972f74","block_type":"box","text":"to seek to enhance its return. These strategies include the use of derivatives, such as options on por tfolio positions","page_number":17,"box":{"x":68,"y":642,"width":831,"height":11}},{"id":"ffec70b2-89c7-4b33-8387-a81b18e109f7","block_type":"box","text":"or currencies, financial and currency futures and options on these futures, forward foreign currency transactions,","page_number":17,"box":{"x":69,"y":657,"width":805,"height":11}},{"id":"3bb8ae62-61e4-4436-a9f0-1e5ae3f61925","block_type":"box","text":"indexed and inverse securities, interest rate swaps and credit default swaps. Derivatives are financial instruments","page_number":17,"box":{"x":70,"y":672,"width":814,"height":11}},{"id":"a0898e2a-d70d-4c2e-9560-6679697a859d","block_type":"box","text":"whose value is derived from another security or an index such as the Bloomberg Global Aggregate Bond Index. The","page_number":17,"box":{"x":68,"y":687,"width":817,"height":11}},{"id":"fb205979-3f38-4113-9658-772a905eeea0","block_type":"box","text":"Fund’s primary vehicle for gaining exposure to the commodities markets is expected to be through investments in the","page_number":17,"box":{"x":70,"y":702,"width":837,"height":12}},{"id":"b651b568-4d10-472e-aacd-2d9942c3ff47","block_type":"box","text":"Strategic Global Bond Fund (Cayman) (the “Subsidiary”), a wholly owned subsidiary of the Fund formed in the Cayman","page_number":17,"box":{"x":69,"y":717,"width":839,"height":12}},{"id":"093d71b7-2129-4384-8348-ea70d3d7108f","block_type":"box","text":"Islands, which invests primarily in commodity-related instruments. The Subsidiary may also hold cash and invest in","page_number":17,"box":{"x":70,"y":733,"width":817,"height":11}},{"id":"b1470728-61af-4841-b5c1-d4eb99803d00","block_type":"box","text":"other instruments, including fixed income securities, either as investments or to serve as margin or collateral for the","page_number":17,"box":{"x":69,"y":748,"width":832,"height":11}},{"id":"11a74330-a4cc-4caf-bd4b-0c8b98298670","block_type":"box","text":"Subsidiary’s derivative positions.","page_number":17,"box":{"x":69,"y":763,"width":234,"height":11}},{"id":"5bd4bef8-a5bc-4d9a-ad46-37fabdf86abd","block_type":"box","text":"Investments in the Subsidiary.","page_number":17,"box":{"x":102,"y":786,"width":214,"height":11}},{"id":"8971b3a1-2454-4668-852d-29d110c1e3c0","block_type":"box","text":"The Fund may invest up to 25% of its total assets in the shares of its wholly","page_number":17,"box":{"x":323,"y":785,"width":545,"height":12}},{"id":"d1d9159c-a7a9-4a32-85be-36777729a16b","block_type":"box","text":"owned and controlled Subsidiary. Investments in the Subsidiary are expected to provide the Fund with exposure to","page_number":17,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"50dc9ff7-2fdd-4281-a307-eab12fb74164","block_type":"box","text":"the commodity markets within the limitations of Subchapter M of the Internal Revenue Code of 1986, as amended,","page_number":17,"box":{"x":68,"y":816,"width":821,"height":11}},{"id":"d2e5d660-fca4-4a18-b4bf-3082b8acd279","block_type":"box","text":"and recent Internal Revenue Service revenue rulings, as discussed below. The Subsidiary is advised by the Manager.","page_number":17,"box":{"x":69,"y":831,"width":833,"height":11}},{"id":"4085f2c1-a6a0-44aa-8b8b-7b8baf39d8e5","block_type":"box","text":"The Subsidiary (unlike the Fund) may invest without limitation in commodity-related instruments. However, the","page_number":17,"box":{"x":68,"y":846,"width":783,"height":11}},{"id":"23834aec-c0f3-4629-8b30-8063dc84abdb","block_type":"box","text":"Subsidiary is otherwise subject to the same fundamental, non-fundamental and cer tain other investment restrictions","page_number":17,"box":{"x":69,"y":861,"width":833,"height":11}},{"id":"53381593-66de-48b1-a327-031b48a2edd7","block_type":"box","text":"as the Fund, including the timing and method of the valuation of the Subsidiary’s por tfolio investments and shares of","page_number":17,"box":{"x":69,"y":876,"width":838,"height":11}},{"id":"9b55bcd3-d25a-43b7-b01e-0d99fbe7dd21","block_type":"box","text":"the Subsidiary. The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all","page_number":17,"box":{"x":68,"y":891,"width":829,"height":12}},{"id":"f4879748-1c25-4f99-8443-1208fd5ebeaa","block_type":"box","text":"material respects, as the policies and procedures adopted by the Fund. The Subsidiary is a company organized under","page_number":17,"box":{"x":69,"y":906,"width":838,"height":12}},{"id":"51a58be9-4eb1-471e-b88b-fdf2dd6a9972","block_type":"box","text":"I-6","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"74670d11-eb07-4fd9-b3af-4c2c625ab364","block_type":"box","text":"NM1026U-5982643-17/241","page_number":17,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"9449c2b6-2395-4a74-bab3-8472ad08f75a","block_type":"box","text":"the laws of the Cayman Islands, and is overseen by its own board of directors, which is comprised of John M.","page_number":18,"box":{"x":68,"y":45,"width":780,"height":11}},{"id":"a5e832d2-f828-432b-a79e-05bc5f9e99fa","block_type":"box","text":"Perlowski, a Director, President and Chief Executive Officer of the Fund, and Trent Walker, Chief Financial Officer of","page_number":18,"box":{"x":69,"y":60,"width":818,"height":10}},{"id":"c74afe8e-d715-445c-ab32-18984779f918","block_type":"box","text":"the Fund. The Fund is the sole shareholder of the Subsidiary, and shares of the Subsidiary will not be sold or offered","page_number":18,"box":{"x":68,"y":75,"width":835,"height":11}},{"id":"a2777e67-5121-4e88-9432-c956edae2510","block_type":"box","text":"to other investors.","page_number":18,"box":{"x":68,"y":90,"width":129,"height":9}},{"id":"c1fc3ae8-f3f7-4985-8dfd-2f91e9d3d017","block_type":"box","text":"The Subsidiary invests primarily in commodity-related instruments. Although the Fund may invest in these","page_number":18,"box":{"x":101,"y":113,"width":751,"height":11}},{"id":"b245c83f-a29f-4670-8010-6572c50c7e44","block_type":"box","text":"commodity-related instruments directly, the Fund will likely gain exposure to these commodity-related instruments","page_number":18,"box":{"x":69,"y":128,"width":808,"height":11}},{"id":"887f8d1a-1ade-4dfa-9837-5b0e28927f89","block_type":"box","text":"indirectly by investing in the Subsidiary. To the extent that BlackRock believes that these commodity-related","page_number":18,"box":{"x":70,"y":143,"width":764,"height":11}},{"id":"d5e401ff-1f87-4d5e-b536-0462f5d5aa85","block_type":"box","text":"instruments provide suitable exposure to the commodities market, the Fund’s investment in the Subsidiary will likely","page_number":18,"box":{"x":70,"y":158,"width":831,"height":11}},{"id":"d68f496d-fcfc-46b7-aee4-f42ac9a88816","block_type":"box","text":"increase. The Subsidiary may also hold cash and invest in other instruments, including fixed income securities, either","page_number":18,"box":{"x":70,"y":173,"width":839,"height":11}},{"id":"c5f71b73-a7cb-45c3-8fb2-90d0d4946ada","block_type":"box","text":"as investments or to serve as margin or collateral for the Subsidiary’s derivative positions.","page_number":18,"box":{"x":69,"y":188,"width":647,"height":12}},{"id":"bbb9de01-88da-4b94-8fab-df63400035f0","block_type":"box","text":"The Manager manages the assets of the Subsidiary, but receives no additional compensation for doing so. The","page_number":18,"box":{"x":101,"y":211,"width":792,"height":11}},{"id":"e2607d4b-beb1-433b-95f1-430be407600b","block_type":"box","text":"Manager has entered into sub-advisory agreements with BlackRock International Limited and BlackRock (Singapore)","page_number":18,"box":{"x":70,"y":226,"width":825,"height":11}},{"id":"3d1b5029-b8fd-4ef4-a755-ef9bfe2c1ca1","block_type":"box","text":"Limited with respect to the Subsidiary. BlackRock also provides cer tain administrative services for the Subsidiary,","page_number":18,"box":{"x":70,"y":241,"width":811,"height":11}},{"id":"b9f0067a-482f-4252-ae46-17d2a5dc338b","block_type":"box","text":"but receives no additional compensation for doing so. The Subsidiary will also enter into separate contracts for the","page_number":18,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"d56604bc-63ea-4ec1-9dd9-19b64be62e78","block_type":"box","text":"provision of advisory, custody, accounting agent and audit services with the same or with affiliates of the same","page_number":18,"box":{"x":70,"y":271,"width":792,"height":12}},{"id":"93756493-e9b7-4c55-947b-a8b9604089d6","block_type":"box","text":"service providers that provide those services to the Fund.","page_number":18,"box":{"x":69,"y":287,"width":410,"height":10}},{"id":"8935de81-7e90-45cc-8c82-d56bfcade80a","block_type":"box","text":"The financial statements of the Subsidiary are consolidated with the Fund’s financial statements in the Fund’s","page_number":18,"box":{"x":101,"y":309,"width":788,"height":11}},{"id":"8e146a4e-c70e-4d35-8cd1-8f26f1a178d6","block_type":"box","text":"Annual and Semi-Annual Financial Statements and Additional Information. The Fund’s Annual and Semi-Annual","page_number":18,"box":{"x":68,"y":324,"width":785,"height":9}},{"id":"d49fb11a-0e78-475c-801d-47f6b9e70a55","block_type":"box","text":"Financial Statements and Additional Information are filed with the SEC on Form N-CSR and are provided without","page_number":18,"box":{"x":70,"y":339,"width":793,"height":11}},{"id":"fa11956e-fd77-40fb-b17d-ce1e6ee8f2ee","block_type":"box","text":"charge upon request as indicated on the front cover of this SAI.","page_number":18,"box":{"x":69,"y":355,"width":451,"height":11}},{"id":"608b6aca-3965-4f4e-a02a-be1fc003a33f","block_type":"box","text":"The Subsidiary is not registered under the Investment Company Act, and, unless otherwise noted in the Fund’s","page_number":18,"box":{"x":101,"y":377,"width":793,"height":12}},{"id":"66570d6a-5330-41fa-be58-b2bc61cc7cd3","block_type":"box","text":"prospectus or this SAI, is not subject to all the investor protections of the Investment Company Act. However, the","page_number":18,"box":{"x":70,"y":392,"width":806,"height":12}},{"id":"04efcd96-c9aa-48fb-b7f0-b07eb70a3f63","block_type":"box","text":"Fund wholly owns and controls the Subsidiary, and the Fund and the Subsidiary are both managed by BlackRock,","page_number":18,"box":{"x":70,"y":408,"width":802,"height":11}},{"id":"d24542a9-53f7-4dad-b5db-5376345895b0","block_type":"box","text":"making it unlikely that the Subsidiary will take action contrary to the interests of the Fund and its shareholders. The","page_number":18,"box":{"x":69,"y":423,"width":825,"height":11}},{"id":"04d1317e-7396-4474-b672-61d1b4f692d6","block_type":"box","text":"Fund’s Board of Directors has oversight responsibility for the investment activities of the Fund, including its","page_number":18,"box":{"x":70,"y":438,"width":763,"height":11}},{"id":"db89fff8-977d-42f3-aabd-491513290e6e","block_type":"box","text":"investment in the Subsidiary, and the Fund’s role as sole shareholder of the Subsidiary. As noted above, the","page_number":18,"box":{"x":70,"y":453,"width":773,"height":11}},{"id":"926ce258-73e1-463d-8456-eee2a2fc2e0a","block_type":"box","text":"Subsidiary will be subject to the same investment restrictions and limitations as the Fund.","page_number":18,"box":{"x":69,"y":468,"width":643,"height":11}},{"id":"ee685b22-2617-4ef7-8fa7-8fc104d66785","block_type":"box","text":"The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material","page_number":18,"box":{"x":101,"y":491,"width":780,"height":11}},{"id":"51acd3d8-8952-4685-a849-404b8b40b4d7","block_type":"box","text":"respects, as the policies and procedures adopted by the Fund. In addition, changes in the laws of the United States","page_number":18,"box":{"x":69,"y":506,"width":826,"height":11}},{"id":"ca4b2874-fa93-4d4e-952d-cf981489558b","block_type":"box","text":"and/or the Cayman Islands could result in the inability of the Fund and/or the Subsidiary to operate as described in","page_number":18,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"4bafdf76-09e8-4126-adfd-4e9c3610de7a","block_type":"box","text":"the Fund’s prospectus and this SAI and could adversely affect the Fund. For example, the Cayman Islands does not","page_number":18,"box":{"x":68,"y":536,"width":825,"height":11}},{"id":"c72de174-a945-432c-b969-c549750c3cd7","block_type":"box","text":"currently impose any income, corporate or capital gains tax, estate duty, inheritance tax, gift tax or withholding tax on","page_number":18,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"d8a6d4ee-dc6f-43fb-8f9a-58a4183ac43a","block_type":"box","text":"the Subsidiary. If Cayman Islands law changes such that the Subsidiary must pay Cayman Islands taxes, Fund","page_number":18,"box":{"x":68,"y":566,"width":786,"height":11}},{"id":"f7fff76b-01e5-408b-b868-1909d9023dcb","block_type":"box","text":"shareholders would likely suffer decreased investment returns.","page_number":18,"box":{"x":69,"y":581,"width":448,"height":11}},{"id":"f4c4bd34-23c4-480d-9b85-d3dab2394823","block_type":"box","text":"The Fund, as a “regulated investment company” under the tax rules, is required to realize at least 90 percent of","page_number":18,"box":{"x":101,"y":604,"width":801,"height":11}},{"id":"cba56256-f571-4f3f-971e-ec267c43b17d","block_type":"box","text":"its annual gross income from investment-related sources, specifically from dividends, interest, proceeds from","page_number":18,"box":{"x":70,"y":619,"width":779,"height":11}},{"id":"ee72359c-c3d8-44cc-a43f-ed06ac79a330","block_type":"box","text":"securities lending, gains from the sales of stocks, securities and foreign currencies, other income (including, but not","page_number":18,"box":{"x":69,"y":634,"width":831,"height":12}},{"id":"ec51563e-4ab3-43cb-8af2-e70af583bdda","block_type":"box","text":"limited to, gains from options, futures or forward contracts) derived with respect to its business of investing in such","page_number":18,"box":{"x":70,"y":649,"width":824,"height":12}},{"id":"150bd049-cf56-4ee6-b91b-fef113a2eac9","block_type":"box","text":"stock, securities or currencies, or cer tain types of publicly traded par tnerships (referred to as qualifying income). The","page_number":18,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"50d4bc4e-124f-4b0a-8e40-f2b4b17137e7","block_type":"box","text":"Fund invests in commodity-related instruments indirectly through the Subsidiary because direct investments by a","page_number":18,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"6a5581ff-edbf-4317-a9cd-a378d8af4b02","block_type":"box","text":"regulated investment company in commodity-related instruments generally do not, under published IRS rulings,","page_number":18,"box":{"x":69,"y":695,"width":789,"height":11}},{"id":"8695f2b9-e9e4-4da0-9983-ea19b451d770","block_type":"box","text":"produce qualifying income. The Fund expects its income with respect to the Subsidiary to be qualifying income.","page_number":18,"box":{"x":70,"y":710,"width":789,"height":11}},{"id":"9d9fa0f9-bae0-4f9b-a4a1-35d913a5b5f5","block_type":"box","text":"However, there is a risk that the IRS could issue regulations or other guidance holding, or could asset, that the","page_number":18,"box":{"x":70,"y":725,"width":789,"height":11}},{"id":"2dd6f126-177a-4cbe-8386-bd378297e4c0","block_type":"box","text":"Fund’s income with respect to the Subsidiary will not be considered “qualifying income” for purposes of the Fund","page_number":18,"box":{"x":70,"y":740,"width":804,"height":11}},{"id":"9ec2e987-cd6a-4737-9959-300f5dfd3092","block_type":"box","text":"remaining qualified as a regulated investment company for U.S. federal income tax purposes. In such circumstances,","page_number":18,"box":{"x":69,"y":755,"width":834,"height":11}},{"id":"74a4b6ae-85e4-481e-8557-8dd80629db49","block_type":"box","text":"the Fund may be required to make changes to its operations, which may reduce the Fund’s ability to gain investment","page_number":18,"box":{"x":68,"y":771,"width":832,"height":11}},{"id":"ecc13d7e-8a28-40c0-8ffe-d56e02b2d03f","block_type":"box","text":"exposure to commodities. Fund shareholders may also experience adverse tax consequences in such circumstances.","page_number":18,"box":{"x":69,"y":786,"width":836,"height":11}},{"id":"8be4144a-c65c-4df5-afd7-3dc0e604fa06","block_type":"box","text":"The Subsidiary will not be subject to Federal income tax. It will, however, be considered a controlled foreign","page_number":18,"box":{"x":101,"y":808,"width":764,"height":11}},{"id":"f36033d5-b048-4591-902e-246f809dc7a6","block_type":"box","text":"corporation, and the Fund will be required to include as income annually amounts earned by the Subsidiary during","page_number":18,"box":{"x":69,"y":823,"width":811,"height":12}},{"id":"770615dc-0e8e-4fc0-9625-3eb9ce0c70ab","block_type":"box","text":"that year, whether or not the Subsidiary distributes such amounts to the Fund. Fur thermore, the requirement for the","page_number":18,"box":{"x":68,"y":838,"width":828,"height":11}},{"id":"8571aa36-0a21-47bb-8589-63aad7041ede","block_type":"box","text":"Fund to distribute net investment income, if any, and net realized capital gain, if any, at least annually, will apply to","page_number":18,"box":{"x":70,"y":853,"width":815,"height":12}},{"id":"f24c7d25-134d-4340-ac41-47347b642289","block_type":"box","text":"such Subsidiary income, whether or not the Subsidiary makes a distribution to the Fund during the taxable year. If the","page_number":18,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"35f079a0-0536-4fce-8e91-09219b4b7b18","block_type":"box","text":"Subsidiary incurs net losses in any year, such losses will not offset the Fund’s income or gains nor carryforward to","page_number":18,"box":{"x":69,"y":884,"width":820,"height":11}},{"id":"5b7635d1-f06f-4592-bb33-20a35ca79425","block_type":"box","text":"future years.","page_number":18,"box":{"x":68,"y":899,"width":89,"height":11}},{"id":"fcba2e22-3e61-4a69-9e20-f49579f1b526","block_type":"box","text":"I-7","page_number":18,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"15e6ffa6-5b7f-4cf8-b8ec-af06b4f8e6e5","block_type":"box","text":"NM1026U-5982643-18/241","page_number":18,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"37afcc5c-1e40-4249-9027-f432a4f6b732","block_type":"box","text":"Regulation Regarding Derivatives.","page_number":19,"box":{"x":102,"y":45,"width":246,"height":11}},{"id":"ca554543-637f-4e55-8f47-a90df7138437","block_type":"box","text":"The Commodity Futures Trading Commission (“CFTC”) subjects advisers to","page_number":19,"box":{"x":355,"y":45,"width":530,"height":11}},{"id":"e8680e53-ea12-40b5-8cbf-4962878aa257","block_type":"box","text":"registered investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either","page_number":19,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"7f6ac235-4ce2-4ae7-99ba-e46cade6b2ff","block_type":"box","text":"(i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC-regulated futures, options","page_number":19,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"4e091781-7cae-4e7d-84c6-4f7961146518","block_type":"box","text":"and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment exposure to such instruments. Due to","page_number":19,"box":{"x":69,"y":90,"width":823,"height":11}},{"id":"594deab7-f6f3-4fca-9671-01b7fb2baff5","block_type":"box","text":"the Fund’s potential use of CFTC Derivatives above the prescribed levels, however, the Fund will be considered a","page_number":19,"box":{"x":68,"y":105,"width":803,"height":11}},{"id":"7fff730c-a1fd-4dc0-8b78-2b7242a07478","block_type":"box","text":"“commodity pool” under the Commodity Exchange Act. Accordingly, BlackRock, the Fund’s investment adviser, has","page_number":19,"box":{"x":70,"y":120,"width":813,"height":12}},{"id":"b6fe9acf-4c7d-43e7-9c73-61afcd0dbec2","block_type":"box","text":"registered as a “commodity pool operator” and is subject to CFTC regulation in respect of the Fund.","page_number":19,"box":{"x":69,"y":135,"width":709,"height":12}},{"id":"c97b7927-7cc2-430f-b705-da7768530e85","block_type":"box","text":"II. Investment Restrictions","page_number":19,"box":{"x":69,"y":166,"width":194,"height":9}},{"id":"22249d3e-d26a-4b51-affe-8df6a05a5ae5","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":19,"box":{"x":101,"y":188,"width":800,"height":12}},{"id":"169f9910-0d12-48d8-b9a9-13d2f5e717ea","block_type":"box","text":"Cer tain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":19,"box":{"x":69,"y":203,"width":825,"height":12}},{"id":"bc609759-38db-497a-9718-42a4b3ecea86","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":19,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"d7c6263c-bcda-41f7-925d-2c3032562d0d","block_type":"box","text":"Company Act means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the","page_number":19,"box":{"x":69,"y":234,"width":803,"height":11}},{"id":"a0b2fe9b-e7cc-4a6d-8150-1404e325bfa8","block_type":"box","text":"outstanding shares are represented or (ii) more than 50% of the outstanding shares). The Fund has also adopted","page_number":19,"box":{"x":69,"y":249,"width":807,"height":11}},{"id":"72d55eb2-bbd4-4086-907a-40fa32cdebd6","block_type":"box","text":"cer tain non-fundamental investment restrictions, which may be changed by the Board of Directors without","page_number":19,"box":{"x":69,"y":264,"width":752,"height":11}},{"id":"0e36e288-54f4-4749-a41a-4a42aecfcb0c","block_type":"box","text":"shareholder approval.","page_number":19,"box":{"x":69,"y":279,"width":153,"height":11}},{"id":"60579be4-1e78-454f-9c0f-7c57bfb5f0d5","block_type":"box","text":"Set for th below are the Fund’s fundamental and non-fundamental investment restrictions. Unless otherwise","page_number":19,"box":{"x":102,"y":302,"width":767,"height":9}},{"id":"ea1c01a2-5eb9-4101-9e05-57d09ec28ef8","block_type":"box","text":"provided, all references below to the assets of the Fund are in terms of current market value.","page_number":19,"box":{"x":70,"y":317,"width":664,"height":11}},{"id":"4d6d3610-7e7b-48eb-b113-50e883efb920","block_type":"box","text":"Under its fundamental investment restrictions, the Fund may not:","page_number":19,"box":{"x":102,"y":339,"width":463,"height":12}},{"id":"ad812231-5923-47cb-ba94-86fa390e6a3a","block_type":"box","text":"(1) Concentrate its investments in a par ticular industry, as that term is used in the Investment Company","page_number":19,"box":{"x":134,"y":362,"width":745,"height":11}},{"id":"a822a0e2-0aab-4b61-8328-892871c1dc60","block_type":"box","text":"Act.","page_number":19,"box":{"x":101,"y":377,"width":25,"height":9}},{"id":"403ff990-1dc0-4d3b-a695-4c272842965d","block_type":"box","text":"(2) Borrow money, except as permitted under the Investment Company Act.","page_number":19,"box":{"x":134,"y":400,"width":534,"height":11}},{"id":"0d5d63f3-5e6b-4fc6-999d-434cb857c830","block_type":"box","text":"(3) Issue senior securities to the extent such issuance would violate the Investment Company Act.","page_number":19,"box":{"x":134,"y":423,"width":699,"height":11}},{"id":"f9d2612f-ff6d-4a86-b39a-5a882fb544ad","block_type":"box","text":"(4) Purchase or hold real estate, except the Fund may purchase and hold securities or other instruments","page_number":19,"box":{"x":134,"y":446,"width":746,"height":10}},{"id":"ef6ebb20-7db9-414d-84f4-cbb25d154b47","block_type":"box","text":"that are secured by, or linked to, real estate or interests therein, securities of real estate investment trusts,","page_number":19,"box":{"x":101,"y":460,"width":770,"height":12}},{"id":"ff0d6ce0-48b6-40cf-9c9f-92e73ebd3262","block_type":"box","text":"mor tgage-related securities and securities of issuers engaged in the real estate business, and the Fund may","page_number":19,"box":{"x":102,"y":475,"width":775,"height":12}},{"id":"6d09fbee-51b8-43d8-ba63-992ded042870","block_type":"box","text":"purchase and hold real estate as a result of the ownership of securities or other instruments.","page_number":19,"box":{"x":102,"y":491,"width":666,"height":11}},{"id":"b214dd83-1730-4c5e-ad85-c5584b5a1595","block_type":"box","text":"(5) Underwrite securities issued by others, except to the extent that the sale of por tfolio securities by the","page_number":19,"box":{"x":134,"y":513,"width":751,"height":11}},{"id":"9bd93923-7d68-4f06-986c-97f0da034640","block_type":"box","text":"Fund may be deemed to be an underwriting or as otherwise permitted by applicable law.","page_number":19,"box":{"x":102,"y":529,"width":627,"height":11}},{"id":"8a3cb7d2-b41f-4627-bce0-20665c390e48","block_type":"box","text":"(6) Purchase or sell commodities or commodity contracts, except as permitted by the Investment Company","page_number":19,"box":{"x":134,"y":551,"width":762,"height":11}},{"id":"7b3189a0-520c-4ea8-a069-de2dc65bd977","block_type":"box","text":"Act.","page_number":19,"box":{"x":101,"y":566,"width":25,"height":9}},{"id":"fa49e512-2e32-4714-966e-6ed5da6be35b","block_type":"box","text":"(7) Make loans to the extent prohibited by the Investment Company Act.","page_number":19,"box":{"x":134,"y":589,"width":511,"height":11}},{"id":"0fde93eb-c282-48a8-840a-a29a0754a606","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":19,"box":{"x":102,"y":612,"width":511,"height":11}},{"id":"db20ea14-7f78-43cb-94cd-0d70b95bb6b1","block_type":"box","text":"The following notations are not considered to be par t of the Fund’s fundamental investment restrictions and are","page_number":19,"box":{"x":101,"y":634,"width":799,"height":12}},{"id":"6649d646-af81-48f7-850b-128913cbb9ca","block_type":"box","text":"subject to change without shareholder approval.","page_number":19,"box":{"x":69,"y":650,"width":341,"height":11}},{"id":"5f19a735-46c8-4fb9-ba14-ba13ecb76904","block_type":"box","text":"With respect to the fundamental policy relating to concentration set for th in (1) above, the Investment Company","page_number":19,"box":{"x":101,"y":672,"width":796,"height":11}},{"id":"776f7d5d-ba0f-418c-92f0-7764e2293379","block_type":"box","text":"Act does not define what constitutes “concentration” in an industry. The Commission staff has taken the position","page_number":19,"box":{"x":68,"y":687,"width":811,"height":11}},{"id":"5a5c969c-4b44-40ab-b0ad-dd25e9a463e4","block_type":"box","text":"that investment of 25% or more of a fund’s total assets in one or more issuers conducting their principal activities in","page_number":19,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"6faa3c15-c4d7-4857-80eb-07005606c3e5","block_type":"box","text":"the same industry or group of industries constitutes concentration. It is possible that interpretations of concentration","page_number":19,"box":{"x":68,"y":717,"width":836,"height":12}},{"id":"9eee54ff-e90a-44f5-9193-4b7441665a10","block_type":"box","text":"could change in the future. The policy in (1) above will be interpreted to refer to concentration as that term may be","page_number":19,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"08786e69-a005-473f-b1e7-f39d07ad0cc0","block_type":"box","text":"interpreted from time to time. The policy also will be interpreted to permit investment without limit in the following:","page_number":19,"box":{"x":70,"y":748,"width":813,"height":11}},{"id":"3ed60092-8b23-44aa-b889-2c2cb2ddb74f","block_type":"box","text":"securities of the U.S. government and its agencies or instrumentalities; securities of state, territory, possession or","page_number":19,"box":{"x":69,"y":763,"width":820,"height":11}},{"id":"ebdad280-79ad-4dc5-80e3-1572bb0510d9","block_type":"box","text":"municipal governments and their authorities, agencies, instrumentalities or political subdivisions; and repurchase","page_number":19,"box":{"x":69,"y":778,"width":809,"height":11}},{"id":"8aaae719-41e2-40bf-8035-ad61fa3993d2","block_type":"box","text":"agreements collateralized by any such obligations. Accordingly, issuers of the foregoing securities will not be","page_number":19,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"7fd97b95-67c4-418b-b0c6-758c7d24c08e","block_type":"box","text":"considered to be members of any industry. There also will be no limit on investment in issuers domiciled in a single","page_number":19,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"d4526d31-4697-4a76-9538-d18bf88b842a","block_type":"box","text":"jurisdiction or country. Finance companies will be considered to be in the industries of their parents if their activities","page_number":19,"box":{"x":67,"y":823,"width":829,"height":11}},{"id":"c2836630-5511-4a55-8b71-3db0947ac84b","block_type":"box","text":"are primarily related to financing the activities of the parents. Each foreign government will be considered to be a","page_number":19,"box":{"x":69,"y":838,"width":805,"height":12}},{"id":"559a08a5-66b8-4953-9748-620ea25f33fd","block_type":"box","text":"member of a separate industry. With respect to the Fund’s industry classifications, the Fund currently utilizes any one","page_number":19,"box":{"x":69,"y":853,"width":840,"height":12}},{"id":"3ccd1bc4-bb3b-4ad4-a095-79fd0a88cbf9","block_type":"box","text":"or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":19,"box":{"x":69,"y":869,"width":803,"height":11}},{"id":"07930efb-1e87-4d38-99ac-c512581504f9","block_type":"box","text":"indexes, and/or as defined by Fund management. The policy also will be interpreted to give broad authority to the","page_number":19,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"0c65395f-de8f-4732-805b-522d33e82bf5","block_type":"box","text":"Fund as to how to classify issuers within or among industries.","page_number":19,"box":{"x":70,"y":899,"width":438,"height":11}},{"id":"6faa3661-8f85-4df9-a5a8-c3630ad2b548","block_type":"box","text":"I-8","page_number":19,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e108b7a5-ac64-46aa-8065-d99bb34d1346","block_type":"box","text":"NM1026U-5982643-19/241","page_number":19,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"abc93379-49dd-475f-8f4e-724ed2aa1c0c","block_type":"box","text":"With respect to the fundamental policy relating to borrowing money set for th in (2) above, the Investment","page_number":20,"box":{"x":101,"y":45,"width":750,"height":11}},{"id":"1b06a0d9-3cbe-4e15-a6fb-5022b30da4e3","block_type":"box","text":"Company Act permits the Fund to borrow money in amounts of up to one-third of the Fund’s total assets from banks","page_number":20,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"5dd6cefd-96e8-4a40-ade7-547ad210aa98","block_type":"box","text":"for any purpose, and to borrow up to 5% of the Fund’s total assets from banks or other lenders for temporary","page_number":20,"box":{"x":68,"y":75,"width":781,"height":11}},{"id":"b759ac02-37cf-425c-b06f-4fcfc4292f12","block_type":"box","text":"purposes. (The Fund’s total assets include the amounts being borrowed.) To limit the risks attendant to borrowing,","page_number":20,"box":{"x":70,"y":90,"width":815,"height":11}},{"id":"5b2f3abe-1cf7-48cb-a7d6-16828f60853b","block_type":"box","text":"the Investment Company Act requires the Fund to maintain at all times an “asset coverage” of at least 300% of the","page_number":20,"box":{"x":68,"y":105,"width":825,"height":11}},{"id":"ddc9e8bf-d34b-4152-ad2d-40e20218c2e9","block_type":"box","text":"amount of its borrowings. Asset coverage means the ratio that the value of the Fund’s total assets (including","page_number":20,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"c656c58f-5819-42b1-b235-bb03f238c453","block_type":"box","text":"amounts borrowed), minus liabilities other than borrowings, bears to the aggregate amount of all borrowings.","page_number":20,"box":{"x":69,"y":135,"width":776,"height":12}},{"id":"fee75f67-3948-431a-b866-3d410a992f54","block_type":"box","text":"Borrowing money to increase por tfolio holdings is known as “leveraging.” Cer tain trading practices and investments,","page_number":20,"box":{"x":70,"y":150,"width":828,"height":12}},{"id":"99aadf64-8422-4d12-a73d-7b83b9ef80ae","block_type":"box","text":"such as reverse repurchase agreements, may be considered to be borrowings or involve leverage and thus are","page_number":20,"box":{"x":69,"y":166,"width":788,"height":11}},{"id":"97b4fd34-02bd-4907-b84d-1e6b879280b1","block_type":"box","text":"subject to the Investment Company Act restrictions. In accordance with Rule 18f-4 under the Investment Company","page_number":20,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"313b8408-91ba-4bf6-a793-b9bc509078d1","block_type":"box","text":"Act, when the Fund engages in reverse repurchase agreements and similar financing transactions, the Fund may","page_number":20,"box":{"x":68,"y":196,"width":802,"height":11}},{"id":"4d945833-a450-4034-a320-ed95a6856c81","block_type":"box","text":"either (i) maintain asset coverage of at least 300% with respect to such transactions and any other borrowings in the","page_number":20,"box":{"x":69,"y":211,"width":834,"height":11}},{"id":"23dd3eff-a8e8-4ace-86f0-cea7a3911702","block_type":"box","text":"aggregate, or (ii) treat such transactions as “derivatives transactions” and comply with Rule 18f-4 with respect to","page_number":20,"box":{"x":69,"y":226,"width":807,"height":11}},{"id":"80304451-1867-4a9b-8cf7-b95e3feeded2","block_type":"box","text":"such transactions. Shor t-term credits necessary for the settlement of securities transactions and arrangements with","page_number":20,"box":{"x":69,"y":241,"width":831,"height":11}},{"id":"01914fb2-b616-4fa5-b32e-5335b8952da7","block_type":"box","text":"respect to securities lending will not be considered to be borrowings under the policy. Practices and investments that","page_number":20,"box":{"x":69,"y":257,"width":835,"height":11}},{"id":"5eb72dea-391d-4fbc-bb29-c27ca8281cde","block_type":"box","text":"may involve leverage but are not considered to be borrowings are not subject to the policy.","page_number":20,"box":{"x":69,"y":272,"width":643,"height":11}},{"id":"c0f17b8a-0902-4eed-b1e3-7f8cb66f87a6","block_type":"box","text":"With respect to the fundamental policy relating to underwriting set for th in (5) above, the Investment Company","page_number":20,"box":{"x":101,"y":294,"width":788,"height":11}},{"id":"34e41f68-324c-42d4-8936-8111c9bac379","block_type":"box","text":"Act does not prohibit the Fund from engaging in the underwriting business or from underwriting the securities of other","page_number":20,"box":{"x":68,"y":309,"width":840,"height":11}},{"id":"76983b7d-5e2c-4c70-ac48-2860ca71e84a","block_type":"box","text":"issuers; in fact, in the case of diversified funds, the Investment Company Act permits the Fund to have underwriting","page_number":20,"box":{"x":70,"y":324,"width":825,"height":12}},{"id":"bb9b7062-d5b3-4090-b359-d8dab0494524","block_type":"box","text":"commitments of up to 25% of its assets under cer tain circumstances. Those circumstances currently are that the","page_number":20,"box":{"x":69,"y":339,"width":811,"height":12}},{"id":"95a7c0c8-b616-481b-abe1-cf6c98b7c1e6","block_type":"box","text":"amount of the Fund’s underwriting commitments, when added to the value of the Fund’s investments in issuers","page_number":20,"box":{"x":69,"y":355,"width":796,"height":11}},{"id":"44e5c576-58fc-491e-8d57-3d0a202fb58e","block_type":"box","text":"where the Fund owns more than 10% of the outstanding voting securities of those issuers, cannot exceed the 25%","page_number":20,"box":{"x":68,"y":370,"width":818,"height":11}},{"id":"5bdced9f-b280-48c1-bb1b-7db8bab0a091","block_type":"box","text":"cap. A fund engaging in transactions involving the acquisition or disposition of por tfolio securities may be considered","page_number":20,"box":{"x":69,"y":385,"width":833,"height":11}},{"id":"2b60efef-83a2-497c-adb2-caaf2db5fc08","block_type":"box","text":"to be an underwriter under the Securities Act of 1933, as amended (the “Securities Act”). Although it is not believed","page_number":20,"box":{"x":68,"y":400,"width":831,"height":11}},{"id":"90878994-021c-4055-98ee-22a6a9dea487","block_type":"box","text":"that the application of the Securities Act provisions described above would cause the Fund to be engaged in the","page_number":20,"box":{"x":68,"y":415,"width":799,"height":11}},{"id":"56197bde-7b7b-4b7e-add1-ee13c512879a","block_type":"box","text":"business of underwriting, the policy in (5) above will be interpreted not to prevent the Fund from engaging in","page_number":20,"box":{"x":69,"y":430,"width":769,"height":11}},{"id":"68c87056-45e4-4fc8-bb9a-a4c676ced7ce","block_type":"box","text":"transactions involving the acquisition or disposition of por tfolio securities, regardless of whether the Fund may be","page_number":20,"box":{"x":68,"y":445,"width":811,"height":12}},{"id":"01a93179-c41d-4e2c-888a-b8db76f7cff3","block_type":"box","text":"considered to be an underwriter under the Securities Act or is otherwise engaged in the underwriting business to the","page_number":20,"box":{"x":69,"y":460,"width":834,"height":12}},{"id":"95d6dab4-b296-426a-8df5-c593e681a935","block_type":"box","text":"extent permitted by applicable law.","page_number":20,"box":{"x":69,"y":476,"width":245,"height":11}},{"id":"f9d11499-6e51-4889-a52c-47d9ee294d8f","block_type":"box","text":"With respect to the fundamental policy relating to lending set for th in (7) above, the Investment Company Act","page_number":20,"box":{"x":101,"y":498,"width":778,"height":11}},{"id":"6cf3e13d-0b94-44bc-ab6e-108edc2e1130","block_type":"box","text":"does not prohibit the Fund from making loans (including lending its securities); however, Commission staff","page_number":20,"box":{"x":69,"y":513,"width":759,"height":12}},{"id":"5cf0ea3d-64b6-4140-a060-57c459b1efa9","block_type":"box","text":"interpretations currently prohibit funds from lending more than one-third of their total assets (including lending its","page_number":20,"box":{"x":70,"y":528,"width":807,"height":12}},{"id":"f997b8eb-c780-4f03-a322-90624a1683f1","block_type":"box","text":"securities), except through the purchase of debt obligations or the use of repurchase agreements. In addition,","page_number":20,"box":{"x":69,"y":543,"width":784,"height":12}},{"id":"6746ba2d-c991-407f-ab8b-27d9398ddc5a","block_type":"box","text":"collateral arrangements with respect to options, forward currency and futures transactions and other derivative","page_number":20,"box":{"x":69,"y":559,"width":791,"height":11}},{"id":"40290851-ffdb-40f2-bbc2-d9520312c3bd","block_type":"box","text":"instruments (as applicable), as well as delays in the settlement of securities transactions, will not be considered","page_number":20,"box":{"x":70,"y":574,"width":803,"height":11}},{"id":"ba6daf28-93de-42f9-bf90-47cc59bdb6c4","block_type":"box","text":"loans.","page_number":20,"box":{"x":70,"y":589,"width":40,"height":9}},{"id":"27cba337-d6db-44eb-b057-dc3a41439009","block_type":"box","text":"The Fund is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":20,"box":{"x":101,"y":612,"width":777,"height":11}},{"id":"c57167cb-102a-41a7-91aa-c2257819483e","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":20,"box":{"x":70,"y":627,"width":751,"height":11}},{"id":"2da8c88d-a391-4414-93ab-277d526e7ddb","block_type":"box","text":"government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":20,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"3dd3f1fe-dd73-4481-b7d2-dbf1fc049396","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Fund’s total assets would be invested in securities of that issuer or","page_number":20,"box":{"x":69,"y":657,"width":827,"height":11}},{"id":"41452575-9e79-4b4c-b292-60811b8e93fe","block_type":"box","text":"(b) the Fund would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":20,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"7cb0b906-330a-4696-995e-6c02adca6fe6","block_type":"box","text":"remaining 25% of its total assets, the Fund can invest more than 5% of its assets in one issuer. Under the","page_number":20,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"ef327dd2-f2f2-4603-ab26-7276fb31e2dc","block_type":"box","text":"Investment Company Act, a fund cannot change its classification from diversified to non-diversified without","page_number":20,"box":{"x":70,"y":702,"width":757,"height":12}},{"id":"2469c4e6-0c4a-4786-85c7-fb2c1abcc0bd","block_type":"box","text":"shareholder approval.","page_number":20,"box":{"x":69,"y":718,"width":153,"height":10}},{"id":"31858c99-350f-4246-9969-155aec9f1c3d","block_type":"box","text":"Under the Fund’s non-fundamental investment restrictions, the Fund may not:","page_number":20,"box":{"x":102,"y":740,"width":550,"height":11}},{"id":"56dca32a-a7a4-4770-bd69-0cc505bffc7d","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":20,"box":{"x":134,"y":763,"width":747,"height":11}},{"id":"26637897-d44c-4c59-9d4c-9179bb8fc37c","block_type":"box","text":"Company Act. As a matter of policy, however, the Fund will not purchase shares of any registered open-end","page_number":20,"box":{"x":102,"y":778,"width":759,"height":11}},{"id":"2786066c-d119-43a8-9887-adfaacb2732b","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of","page_number":20,"box":{"x":102,"y":793,"width":779,"height":11}},{"id":"e6374a9e-af46-479a-9d25-6e0e69882fcb","block_type":"box","text":"funds” provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are","page_number":20,"box":{"x":101,"y":808,"width":761,"height":11}},{"id":"ea7af4bc-20ef-4231-a68e-8474eded47a1","block_type":"box","text":"purchased by another investment company investor in reliance on the provisions of subparagraph (G) of Section","page_number":20,"box":{"x":102,"y":823,"width":795,"height":12}},{"id":"f48bbaec-86b8-40ca-a85d-2acbb479a72b","block_type":"box","text":"12(d)(1).","page_number":20,"box":{"x":102,"y":838,"width":60,"height":11}},{"id":"1e3a712e-03bc-4e81-a2c0-af447a40d075","block_type":"box","text":"(b) Make shor t sales of securities or maintain a shor t position, except to the extent permitted by the Fund’s","page_number":20,"box":{"x":134,"y":861,"width":770,"height":11}},{"id":"1f0680cf-8a0b-4ce8-9905-34490e083095","block_type":"box","text":"Prospectus and Statement of Additional Information, as amended from time to time, and applicable law.","page_number":20,"box":{"x":102,"y":876,"width":740,"height":11}},{"id":"c41d0dfd-69ea-45df-927e-b649c63a2c21","block_type":"box","text":"I-9","page_number":20,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"b4412848-bb68-4ecb-a854-bdb6ef6137d4","block_type":"box","text":"NM1026U-5982643-20/241","page_number":20,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"2eb0fdff-a095-427b-8928-1115e900a722","block_type":"box","text":"Unless otherwise indicated, all limitations under the Fund’s fundamental or non-fundamental investment","page_number":21,"box":{"x":102,"y":45,"width":744,"height":10}},{"id":"26fe5dba-6579-4aa5-8ba5-d7be7d24ceaf","block_type":"box","text":"restrictions apply only at the time that a transaction is under taken. Any change in the percentage of the Fund’s","page_number":21,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"0399648e-1703-404f-8f30-16389239309b","block_type":"box","text":"assets invested in cer tain securities or other instruments resulting from market fluctuations or other changes in the","page_number":21,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"fd11eb47-c770-4be7-8c96-4f4cee0f0ff7","block_type":"box","text":"Fund’s total assets will not require the Fund to dispose of an investment until BlackRock determines that it is","page_number":21,"box":{"x":70,"y":90,"width":780,"height":11}},{"id":"e3065297-6dbf-47b0-930e-6774207c1ee8","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":21,"box":{"x":70,"y":105,"width":642,"height":11}},{"id":"d0a820ce-d97b-4fd9-b4a5-f1ec20f711c6","block_type":"box","text":"The Subsidiary will follow the Fund’s fundamental and non-fundamental investment restrictions, described above,","page_number":21,"box":{"x":101,"y":128,"width":807,"height":11}},{"id":"bca0d9ec-0707-499c-8f47-c485a726b143","block_type":"box","text":"with respect to its investments.","page_number":21,"box":{"x":68,"y":143,"width":224,"height":11}},{"id":"39a3b9fa-47f6-425b-800c-c82a29938907","block_type":"box","text":"III. Information on Directors and Officers","page_number":21,"box":{"x":69,"y":173,"width":294,"height":9}},{"id":"206c723f-1471-4daf-a10e-611ca7a594b5","block_type":"box","text":"The Board of Directors (the “Board”) of the Fund consists of nine individuals (each a “Director”), seven of whom","page_number":21,"box":{"x":101,"y":196,"width":799,"height":11}},{"id":"b8b122ec-80ce-4f01-8148-2e193751f907","block_type":"box","text":"are not “interested persons” of the Fund as defined in the Investment Company Act (the “Independent Directors”).","page_number":21,"box":{"x":69,"y":211,"width":815,"height":11}},{"id":"fc10345e-b4bc-43ae-bd92-96c0e6328278","block_type":"box","text":"The registered investment companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are","page_number":21,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"436f0f8f-1048-415e-a216-26826dc613c3","block_type":"box","text":"organized into the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex","page_number":21,"box":{"x":69,"y":241,"width":818,"height":11}},{"id":"e8993d36-dcbf-45a9-8d76-3a67f864db46","block_type":"box","text":"(each, a “BlackRock Fund Complex”). The Fund is included in the BlackRock Fund Complex referred to as the","page_number":21,"box":{"x":69,"y":256,"width":776,"height":11}},{"id":"d0c3f4d0-60ae-425f-b905-9a603509a1de","block_type":"box","text":"BlackRock Fixed-Income Complex. The Directors also oversee as board members the operations of the other open","page_number":21,"box":{"x":70,"y":271,"width":815,"height":11}},{"id":"e84edc63-6180-4553-b453-0e03c3379f99","block_type":"box","text":"end and closed-end registered investment companies included in the BlackRock Fixed-Income Complex.","page_number":21,"box":{"x":69,"y":287,"width":736,"height":11}},{"id":"e1079458-5165-45fb-b5bf-772be6f1e3d1","block_type":"box","text":"The Board has overall responsibility for the oversight of the Fund. The Chair of the Board and the Chief Executive","page_number":21,"box":{"x":101,"y":309,"width":802,"height":11}},{"id":"597c4247-fcd4-4470-9506-3ccf42aded13","block_type":"box","text":"Officer are different people. Not only is the Chair of the Board an Independent Director, but also the Chair of each","page_number":21,"box":{"x":69,"y":324,"width":811,"height":11}},{"id":"fbe07097-b0b6-4ea9-bb4d-5d70b63205a2","block_type":"box","text":"Board committee (each, a “Committee”) is an Independent Director. The Board has six standing Committees: an","page_number":21,"box":{"x":70,"y":340,"width":800,"height":11}},{"id":"73edbfd6-20e3-4f54-babb-0192cd705617","block_type":"box","text":"Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Per formance Oversight","page_number":21,"box":{"x":68,"y":355,"width":801,"height":11}},{"id":"8fe58df7-7cfd-446b-ae7e-1b55b5592e9b","block_type":"box","text":"Committee, a Securities Lending Committee and an Executive Committee. The role of the Chair of the Board is to","page_number":21,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"9f91c48f-6dce-4b52-97bc-774a093e57db","block_type":"box","text":"preside over all meetings of the Board and to act as a liaison with service providers, officers, attorneys, and other","page_number":21,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"cfc2b44f-03b9-4cbf-9303-977ff83fce96","block_type":"box","text":"Directors between meetings. The Chair of each Committee per forms a similar role with respect to the Committee.","page_number":21,"box":{"x":70,"y":400,"width":809,"height":11}},{"id":"9b7ca6b6-f680-4bbe-be98-41d4c32265f2","block_type":"box","text":"The Chair of the Board or a Committee may also per form such other functions as may be delegated by the Board or","page_number":21,"box":{"x":68,"y":415,"width":826,"height":11}},{"id":"2a6812ed-93b0-4df8-a1a8-c05652926c69","block_type":"box","text":"the Committee from time to time. The Independent Directors meet regularly outside the presence of the Fund’s","page_number":21,"box":{"x":68,"y":430,"width":793,"height":11}},{"id":"cd96ac89-b9c1-431a-bd8d-a89389733547","block_type":"box","text":"management, in executive sessions or with other service providers to the Fund. The Board has regular meetings five","page_number":21,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"311f5dbb-ae05-4d2b-b73f-e7f53a69ec4d","block_type":"box","text":"times a year, including a meeting to consider the approval of the Fund’s investment management agreement, and, if","page_number":21,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"4032afee-86ba-4531-a137-d700d5290e1f","block_type":"box","text":"necessary, may hold special meetings before its next regular meeting. The Audit Committee, the Governance and","page_number":21,"box":{"x":69,"y":475,"width":806,"height":12}},{"id":"f6ff7d2c-27a5-48e4-a855-2362e7f9f5c0","block_type":"box","text":"Nominating Committee, the Compliance Committee, the Per formance Oversight Committee and the Securities","page_number":21,"box":{"x":70,"y":491,"width":782,"height":11}},{"id":"0781ba3d-e701-4c04-94b9-a8aa52ccf14d","block_type":"box","text":"Lending Committee each meets regularly and the Executive Committee meets on an ad hoc basis to conduct the","page_number":21,"box":{"x":70,"y":506,"width":801,"height":11}},{"id":"1c6a6222-4eee-4674-9ddb-4630bca5d900","block_type":"box","text":"oversight functions delegated to that Committee by the Board and repor ts its findings to the Board. The Board and","page_number":21,"box":{"x":69,"y":521,"width":816,"height":11}},{"id":"51f3a0bb-1c7c-4a95-a18c-7af8ea4ab4e5","block_type":"box","text":"each standing Committee conduct annual assessments of their oversight function and structure. The Board has","page_number":21,"box":{"x":69,"y":536,"width":797,"height":11}},{"id":"223c4d1a-655d-4fd0-b1c9-f8a2ce66b71c","block_type":"box","text":"determined that the Board’s leadership structure is appropriate because it allows the Board to exercise independent","page_number":21,"box":{"x":69,"y":551,"width":833,"height":11}},{"id":"83f5d1ba-07c0-4443-bbc2-b6b3b4721d27","block_type":"box","text":"judgment over management and to allocate areas of responsibility among Committees and the Board to enhance","page_number":21,"box":{"x":67,"y":566,"width":807,"height":11}},{"id":"b56a5d17-6432-4c1c-a8e0-7c0dea6babf2","block_type":"box","text":"oversight.","page_number":21,"box":{"x":69,"y":582,"width":67,"height":11}},{"id":"55695545-41c4-4a4a-a332-f8be6f584ead","block_type":"box","text":"The Board decided to separate the roles of Chief Executive Officer from the Chair because it believes that having","page_number":21,"box":{"x":101,"y":604,"width":805,"height":11}},{"id":"9ee204a0-8457-449f-8c1c-c8644db7d241","block_type":"box","text":"an independent Chair:","page_number":21,"box":{"x":69,"y":619,"width":155,"height":11}},{"id":"9a0a423c-1a42-4ee9-94ea-fd33d304e2c1","block_type":"box","text":"•","page_number":21,"box":{"x":102,"y":642,"width":6,"height":5}},{"id":"a830cfd9-e1ed-49c6-8613-10932fd4dfb9","block_type":"box","text":"increases the independent oversight of the Fund and enhances the Board’s objective evaluation of the Chief","page_number":21,"box":{"x":135,"y":639,"width":771,"height":12}},{"id":"f0182794-796f-4e93-b208-bf2197ed8068","block_type":"box","text":"Executive Officer;","page_number":21,"box":{"x":135,"y":654,"width":121,"height":11}},{"id":"ce505eae-b8ce-4358-a24b-07af3bb66c78","block_type":"box","text":"•","page_number":21,"box":{"x":102,"y":677,"width":6,"height":5}},{"id":"05baae2a-9e50-4082-948c-e5aa3c7f9941","block_type":"box","text":"allows the Chief Executive Officer to focus on the Fund’s operations instead of Board administration;","page_number":21,"box":{"x":134,"y":675,"width":717,"height":11}},{"id":"62b47659-3a6d-4385-bfad-2ffc5d4a2b3a","block_type":"box","text":"•","page_number":21,"box":{"x":102,"y":698,"width":6,"height":4}},{"id":"a0df25e1-1278-4f63-8398-f0eb67088c9e","block_type":"box","text":"provides greater oppor tunities for direct and independent communication between shareholders and the","page_number":21,"box":{"x":135,"y":695,"width":742,"height":11}},{"id":"4ccf6121-0939-4674-b32f-e21b5a3c707b","block_type":"box","text":"Board; and","page_number":21,"box":{"x":135,"y":710,"width":76,"height":10}},{"id":"faecf02c-178f-4f61-9e72-352317680cec","block_type":"box","text":"•","page_number":21,"box":{"x":102,"y":733,"width":6,"height":4}},{"id":"50ebfc8c-0391-44ca-a828-7915b7976e0a","block_type":"box","text":"provides an independent spokesman for the Fund.","page_number":21,"box":{"x":135,"y":730,"width":356,"height":11}},{"id":"efb45197-816a-4800-9281-1d1ca58635a0","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":21,"box":{"x":101,"y":753,"width":777,"height":11}},{"id":"68ee3bf8-6815-4e16-a5a6-fb5273d8d7b9","block_type":"box","text":"overseeing the Manager, sub-advisers, other service providers, the operations of the Fund and associated risks in","page_number":21,"box":{"x":69,"y":768,"width":811,"height":11}},{"id":"c834f60d-0d67-432e-9cd2-51b2c79bc981","block_type":"box","text":"accordance with the provisions of the Investment Company Act, state law, other applicable laws, the Fund’s char ter,","page_number":21,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"b516ac1d-292d-4ceb-b722-520f8216226f","block_type":"box","text":"and the Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s","page_number":21,"box":{"x":69,"y":798,"width":743,"height":11}},{"id":"2b524760-fe16-45c5-9d43-73141405c8ef","block_type":"box","text":"per formance, operations, and investment strategies and techniques. The Board also conducts reviews of the","page_number":21,"box":{"x":70,"y":813,"width":776,"height":11}},{"id":"668457b1-67fb-4679-976e-56a968a9ec61","block_type":"box","text":"Manager and its role in running the operations of the Fund.","page_number":21,"box":{"x":70,"y":828,"width":419,"height":12}},{"id":"f4af9645-fa00-4c08-a156-5a6a7042f37d","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager, sub-advisers or other","page_number":21,"box":{"x":102,"y":851,"width":793,"height":11}},{"id":"2948f085-52f6-46c5-9ba8-69f0c399ede3","block_type":"box","text":"service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":21,"box":{"x":69,"y":866,"width":787,"height":11}},{"id":"fa542ea7-5486-4f8b-bbc5-cf17c353b098","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":21,"box":{"x":69,"y":881,"width":832,"height":11}},{"id":"8b2a5f5e-d9f3-45c4-8727-5d2a783f143b","block_type":"box","text":"there are a number of risk management functions per formed by the Manager, sub-advisers or other service providers,","page_number":21,"box":{"x":68,"y":896,"width":839,"height":12}},{"id":"2030e186-7876-4c27-a55f-c6c3eb2ddbdc","block_type":"box","text":"as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight is par t of the","page_number":21,"box":{"x":69,"y":911,"width":789,"height":12}},{"id":"d1f6dbf1-2412-418a-8b39-ec457e127250","block_type":"box","text":"I-10","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1d710939-ac38-4df3-8539-3287b1c89b46","block_type":"box","text":"NM1026U-5982643-21/241","page_number":21,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"80d1c773-3032-4d5f-b0b1-74324a489382","block_type":"box","text":"Board’s general oversight of the Fund and is addressed as par t of various Board and Committee activities. The","page_number":22,"box":{"x":70,"y":45,"width":790,"height":11}},{"id":"24cacb35-cf14-46ea-b089-8ee3cf4b6078","block_type":"box","text":"Board, directly or through Committees, also reviews repor ts from, among others, management, the independent","page_number":22,"box":{"x":70,"y":60,"width":799,"height":11}},{"id":"8845856b-c829-494d-926f-bd8534bf6835","block_type":"box","text":"registered public accounting firm for the Fund, the Manager, sub-advisers and internal auditors for the Manager or its","page_number":22,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"65704c3e-6bd0-41db-8456-9d2d3ffe13b0","block_type":"box","text":"affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s risk","page_number":22,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"e208f447-3c85-4fd5-9f21-14b5558793fc","block_type":"box","text":"functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors and","page_number":22,"box":{"x":68,"y":105,"width":811,"height":11}},{"id":"2638dce5-ad15-484d-b3a5-18aec0298d4c","block_type":"box","text":"facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities and","page_number":22,"box":{"x":68,"y":120,"width":818,"height":12}},{"id":"97a04f70-eca9-4878-b2d6-2a2c94b8dfcf","block_type":"box","text":"associated risks. The Board has approved the appointment of a Chief Compliance Officer (“CCO”), who oversees the","page_number":22,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"e6e435d3-a0a4-4569-a20f-c38bcabfd5ae","block_type":"box","text":"implementation and testing of the Fund’s compliance program and repor ts regularly to the Board regarding","page_number":22,"box":{"x":70,"y":150,"width":760,"height":12}},{"id":"141e4690-c2b9-4898-b9d8-edba816a946d","block_type":"box","text":"compliance matters for the Fund and its service providers. The Independent Directors have engaged independent","page_number":22,"box":{"x":69,"y":166,"width":807,"height":11}},{"id":"ea539d2a-b05b-4ba6-bb0d-ce99ec667b26","block_type":"box","text":"legal counsel to assist them in per forming their oversight responsibilities.","page_number":22,"box":{"x":70,"y":181,"width":524,"height":11}},{"id":"e20443e5-af7c-4f8b-a215-d13766b0fca8","block_type":"box","text":"Audit Committee.","page_number":22,"box":{"x":101,"y":203,"width":122,"height":9}},{"id":"eac19f6c-1af5-4003-922b-7339fc758324","block_type":"box","text":"The Board has a standing Audit Committee composed of Lorenzo A. Flores (Chair), J. Phillip","page_number":22,"box":{"x":229,"y":203,"width":651,"height":12}},{"id":"96b374a5-ff0d-4a59-ac7b-4f4e6fbd7db3","block_type":"box","text":"Holloman and Ar thur P. Steinmetz, all of whom are Independent Directors. The principal responsibilities of the Audit","page_number":22,"box":{"x":70,"y":218,"width":822,"height":11}},{"id":"d093eb2a-d282-4092-81ed-71fe788b3c04","block_type":"box","text":"Committee are to assist the Board in fulfilling its oversight responsibilities relating to the accounting and financial","page_number":22,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"222d1dba-7a0d-468c-9a51-e3a62c158da0","block_type":"box","text":"repor ting policies and practices of the Fund. The Audit Committee’s responsibilities include, without limitation:","page_number":22,"box":{"x":69,"y":249,"width":786,"height":11}},{"id":"a94afe2e-7580-4a4b-bdd9-7566c8d66dc2","block_type":"box","text":"(i) approving, and recommending to the full Board for approval, the selection, retention, termination and","page_number":22,"box":{"x":69,"y":264,"width":739,"height":11}},{"id":"ec97251c-06e0-46f3-9b66-309c5a56bf8a","block_type":"box","text":"compensation of the Fund’s independent registered public accounting firm (the “Independent Registered Public","page_number":22,"box":{"x":69,"y":279,"width":792,"height":11}},{"id":"495d2b0c-f344-4281-94cc-0747f4245d60","block_type":"box","text":"Accounting Firm”) and evaluating the independence and objectivity of the Independent Registered Public Accounting","page_number":22,"box":{"x":68,"y":294,"width":824,"height":11}},{"id":"87ca93b6-c86b-4a50-a740-1ee3912f458d","block_type":"box","text":"Firm; (ii) approving all audit engagement terms and fees for the Fund; (iii) reviewing the conduct and results of each","page_number":22,"box":{"x":70,"y":309,"width":822,"height":11}},{"id":"c74e988c-795f-45ee-b3ce-08407ff6f332","block_type":"box","text":"audit; (iv) reviewing any issues raised by the Fund’s Independent Registered Public Accounting Firm or management","page_number":22,"box":{"x":69,"y":325,"width":824,"height":11}},{"id":"3e1fd4ab-7acf-4d01-93cc-7b1172de80c7","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund, its internal controls, and, as","page_number":22,"box":{"x":69,"y":339,"width":785,"height":12}},{"id":"c230f692-538b-4560-ae89-b931820acc22","block_type":"box","text":"appropriate, the internal controls of cer tain service providers and management’s response to any such issues;","page_number":22,"box":{"x":69,"y":355,"width":791,"height":11}},{"id":"dd7e9f71-c901-4b92-a038-d51030e6d0d1","block_type":"box","text":"(v) reviewing and discussing the Fund’s audited and unaudited financial statements and disclosure in the Fund’s","page_number":22,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"9c565d7e-62e6-4d47-974e-0f7d9e15928f","block_type":"box","text":"shareholder repor ts relating to the Fund’s per formance; (vi) assisting the Board’s responsibilities with respect to the","page_number":22,"box":{"x":69,"y":385,"width":833,"height":11}},{"id":"f8c3d3f1-358c-433c-a005-fe4173a77a91","block_type":"box","text":"internal controls of the Fund and its service providers with respect to accounting and financial matters; and","page_number":22,"box":{"x":70,"y":400,"width":764,"height":11}},{"id":"8069ed84-33f5-41e7-a97e-fb34104b5944","block_type":"box","text":"(vii) resolving any disagreements between the Fund’s management and the Fund’s Independent Registered Public","page_number":22,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"2f0313c1-2dba-4c88-aade-e6f23ef7a433","block_type":"box","text":"Accounting Firm regarding financial repor ting. The Board has adopted a written char ter for the Board’s Audit","page_number":22,"box":{"x":68,"y":430,"width":770,"height":11}},{"id":"3305cb79-4401-4b91-9dbe-005617d95068","block_type":"box","text":"Committee. During the fiscal year ended December 31, 2025, the Audit Committee met four times.","page_number":22,"box":{"x":69,"y":445,"width":706,"height":12}},{"id":"e2d95564-6f1d-43d9-ae63-311f21139b60","block_type":"box","text":"Governance and Nominating Committee.","page_number":22,"box":{"x":102,"y":468,"width":286,"height":11}},{"id":"752b0407-d1e6-49c0-862e-a0027cf45141","block_type":"box","text":"The Board has a standing Governance and Nominating Committee","page_number":22,"box":{"x":394,"y":468,"width":471,"height":11}},{"id":"9102c2bc-104e-4a0d-976a-4647a48f04ab","block_type":"box","text":"composed of W. Carl Kester (Chair), Cynthia L. Egan, J. Phillip Holloman and R. Glenn Hubbard, all of whom are","page_number":22,"box":{"x":69,"y":483,"width":791,"height":11}},{"id":"d579d206-c5c5-4bfa-aeda-6f63ba0069be","block_type":"box","text":"Independent Directors. The principal responsibilities of the Governance and Nominating Committee are: (i) identifying","page_number":22,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"c854fc82-89c0-4c6b-b761-9febe25c38d6","block_type":"box","text":"individuals qualified to serve as Independent Directors and recommending Board nominees that are not “interested","page_number":22,"box":{"x":70,"y":513,"width":823,"height":12}},{"id":"e6932f3c-98fc-4602-b6f4-ec4391d5e0a7","block_type":"box","text":"persons” of the Fund (as defined in the Investment Company Act) for election by shareholders or appointment by the","page_number":22,"box":{"x":70,"y":528,"width":829,"height":12}},{"id":"355b7115-caed-4ddd-a1e0-ad50634bcda9","block_type":"box","text":"Board; (ii) advising the Board with respect to Board composition, procedures and Committees of the Board (other","page_number":22,"box":{"x":70,"y":543,"width":806,"height":12}},{"id":"f4e19a57-f75f-453a-9e2c-275f0912de87","block_type":"box","text":"than the Audit Committee); (iii) overseeing periodic self-assessments of the Board and Committees of the Board","page_number":22,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"57fee8d0-6096-437b-9e7f-3bc74ef32195","block_type":"box","text":"(other than the Audit Committee); (iv) reviewing and making recommendations in respect to Independent Director","page_number":22,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"3b45f718-fae4-407d-a2e1-236990df59ad","block_type":"box","text":"compensation; (v) monitoring corporate governance matters and making recommendations in respect thereof to the","page_number":22,"box":{"x":69,"y":589,"width":823,"height":11}},{"id":"432abddd-b51c-4c13-b153-676584a87213","block_type":"box","text":"Board; (vi) acting as the administrative committee with respect to Board policies and procedures, committee policies","page_number":22,"box":{"x":70,"y":604,"width":831,"height":11}},{"id":"74b18eef-5f9f-48c9-b915-52d5ac5596d3","block_type":"box","text":"and procedures (other than the Audit Committee) and codes of ethics as they relate to the Independent Directors;","page_number":22,"box":{"x":69,"y":619,"width":811,"height":11}},{"id":"2b2f7681-0ba1-4a8f-af83-1fd369ae8ddf","block_type":"box","text":"and (vii) reviewing and making recommendations to the Board in respect of Fund share ownership by the Independent","page_number":22,"box":{"x":69,"y":634,"width":838,"height":12}},{"id":"8452d317-dd20-4ca8-aba9-bed0702c337b","block_type":"box","text":"Directors. The Board has adopted a written char ter for the Board’s Governance and Nominating Committee. During","page_number":22,"box":{"x":70,"y":649,"width":817,"height":12}},{"id":"d1c62a7d-714d-47dd-8486-76b3c4b7724c","block_type":"box","text":"the fiscal year ended December 31, 2025, the Governance and Nominating Committee met four times.","page_number":22,"box":{"x":68,"y":664,"width":734,"height":12}},{"id":"bc4353a0-3544-4e29-864f-62a4116bf43e","block_type":"box","text":"The Governance and Nominating Committee of the Board seeks to identify individuals to serve on the Board who","page_number":22,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"e0c8270c-24a7-49dd-afad-c7aace5d5ba5","block_type":"box","text":"have a diverse range of viewpoints, qualifications, experiences, backgrounds and skill sets so that the Board will be","page_number":22,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"9e2713f1-6b60-4037-902a-bcf6cd397ac6","block_type":"box","text":"better suited to fulfill its responsibility of overseeing the Fund’s activities. In so doing, the Governance and","page_number":22,"box":{"x":69,"y":717,"width":759,"height":12}},{"id":"f671edb4-e459-4ada-9bd3-5409cf77869f","block_type":"box","text":"Nominating Committee reviews the size of the Board, the ages of the current Directors and their tenure on the Board,","page_number":22,"box":{"x":70,"y":732,"width":836,"height":12}},{"id":"acf29711-4db2-4323-95ca-ab46d42e65f1","block_type":"box","text":"and the skills, background and experiences of the Directors in light of the issues facing the Fund in determining","page_number":22,"box":{"x":69,"y":748,"width":796,"height":11}},{"id":"3cef79f1-7006-4e85-a0cb-af3828c5b716","block_type":"box","text":"whether one or more new directors should be added to the Board. The Board as a group strives to achieve diversity in","page_number":22,"box":{"x":68,"y":763,"width":839,"height":11}},{"id":"b3ae9465-3d6b-402b-9b33-e35b2ff55316","block_type":"box","text":"terms of gender, race and geographic location. The Governance and Nominating Committee believes that the","page_number":22,"box":{"x":68,"y":778,"width":775,"height":11}},{"id":"81f84183-06a4-417b-86de-325e81552ce8","block_type":"box","text":"Directors as a group possess the array of skills, experiences and backgrounds necessary to guide the Fund. The","page_number":22,"box":{"x":70,"y":793,"width":802,"height":11}},{"id":"98d120ad-e88b-47c2-80b1-eff1eadcce53","block_type":"box","text":"Directors’ biographies included herein highlight the diversity and breadth of skills, qualifications and exper tise that","page_number":22,"box":{"x":70,"y":808,"width":816,"height":11}},{"id":"578fd95a-4937-4bdc-9ab1-258c2ef3c6ed","block_type":"box","text":"the Directors bring to the Fund.","page_number":22,"box":{"x":68,"y":823,"width":221,"height":12}},{"id":"5cd4e53c-4411-42ff-9b6e-00b13de777e3","block_type":"box","text":"The Governance and Nominating Committee may consider nominations for Directors made by the Fund’s","page_number":22,"box":{"x":101,"y":846,"width":744,"height":11}},{"id":"cf582643-74ba-407c-b580-c07611a7a1cb","block_type":"box","text":"shareholders as it deems appropriate. Under the Fund’s Bylaws, shareholders must follow cer tain procedures to","page_number":22,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"3b715065-e1cd-4485-857d-04836abecf26","block_type":"box","text":"nominate a person for election as a Director at a shareholder meeting at which Directors are to be elected. Under","page_number":22,"box":{"x":69,"y":876,"width":810,"height":11}},{"id":"abe560cc-4e54-4850-9209-8e3beff21bee","block_type":"box","text":"these advance notice procedures, shareholders must submit the proposed nominee by delivering a notice to the","page_number":22,"box":{"x":68,"y":891,"width":801,"height":12}},{"id":"eda71760-3039-4f77-b4e7-290a8cd26e85","block_type":"box","text":"Secretary of the Fund at its principal executive offices no later than the close of business on the fifth (5th) day","page_number":22,"box":{"x":69,"y":906,"width":790,"height":12}},{"id":"6bc23909-cf07-4ff0-9209-d1bea8c76849","block_type":"box","text":"I-11","page_number":22,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"60a13f9d-1067-43f6-a57d-6154f3a924aa","block_type":"box","text":"NM1026U-5982643-22/241","page_number":22,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"f9e5cbb8-b78b-4f17-be34-2184c61879b1","block_type":"box","text":"following the day on which notice of the date of the meeting was mailed or public disclosure of the date of the","page_number":23,"box":{"x":68,"y":45,"width":784,"height":11}},{"id":"6f4c3083-0125-4209-b6c7-f9fc9e9b648a","block_type":"box","text":"meeting was made, whichever first occurs.","page_number":23,"box":{"x":69,"y":60,"width":302,"height":11}},{"id":"eba3cde7-c08d-4f96-9f61-8f4f50cfe3f7","block_type":"box","text":"The Fund’s Bylaws provide that notice of a proposed nomination must include cer tain information about the","page_number":23,"box":{"x":101,"y":82,"width":768,"height":12}},{"id":"852cffb5-a0a2-4e82-b046-941ed5e7ee50","block_type":"box","text":"shareholder and the nominee, as well as cer tain other information, including a written consent of the proposed","page_number":23,"box":{"x":69,"y":98,"width":791,"height":11}},{"id":"f41bf236-e878-43c2-a369-40cbd4c8ce9c","block_type":"box","text":"nominee to serve if elected. Reference is made to the Fund’s Bylaws for more details.","page_number":23,"box":{"x":69,"y":113,"width":613,"height":11}},{"id":"4cd261ef-b8fa-4c64-bce1-fcabc49235be","block_type":"box","text":"Compliance Committee.","page_number":23,"box":{"x":102,"y":135,"width":168,"height":11}},{"id":"1a1c9d99-a235-4cfa-86b8-8f36142c3d64","block_type":"box","text":"The Board has a Compliance Committee composed of Cynthia L. Egan (Chair), Stayce D.","page_number":23,"box":{"x":276,"y":135,"width":628,"height":12}},{"id":"459831af-d918-48bb-b9d7-efff8f1d793d","block_type":"box","text":"Harris, R. Glenn Hubbard and W. Carl Kester, all of whom are Independent Directors. The Compliance Committee’s","page_number":23,"box":{"x":70,"y":150,"width":815,"height":11}},{"id":"29b1f29d-08ca-42ee-b6e0-21341ab0f859","block_type":"box","text":"purpose is to assist the Board in fulfilling its responsibility with respect to the oversight of regulatory and fiduciary","page_number":23,"box":{"x":70,"y":166,"width":814,"height":11}},{"id":"6d0705ad-3586-4b33-9f70-56e2b6bbe0fb","block_type":"box","text":"compliance matters involving the Fund, the fund-related activities of BlackRock, and any sub-advisers and the Fund’s","page_number":23,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"ea66459a-8096-4062-9eff-4111f987b64e","block_type":"box","text":"other third par ty service providers. The Compliance Committee’s responsibilities include, without limitation:","page_number":23,"box":{"x":69,"y":196,"width":765,"height":11}},{"id":"726b80e6-6a5a-43f1-8c50-5ec83d797d67","block_type":"box","text":"(i) overseeing the compliance policies and procedures of the Fund and its service providers and recommending","page_number":23,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"fbbaa64c-8315-4b6f-beed-b5d1a8d2a20d","block_type":"box","text":"changes or additions to such policies and procedures; (ii) reviewing information on and, where appropriate,","page_number":23,"box":{"x":69,"y":226,"width":762,"height":11}},{"id":"77e8344e-3b6f-4ab2-a2ab-3091945bc489","block_type":"box","text":"recommending policies concerning the Fund’s compliance with applicable law; (iii) reviewing information on any","page_number":23,"box":{"x":69,"y":241,"width":791,"height":11}},{"id":"c8eb34d6-8ead-4c3b-82a9-163241b8d1c6","block_type":"box","text":"significant correspondence with or other actions by regulators or governmental agencies with respect to the Fund and","page_number":23,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"acf0b28b-f813-4a6d-a6e5-b38d50d828d1","block_type":"box","text":"any employee complaints or published repor ts that raise concerns regarding compliance matters; and (iv) reviewing","page_number":23,"box":{"x":69,"y":272,"width":822,"height":11}},{"id":"60ace4f3-b177-49ba-9aed-c0de398fbcd1","block_type":"box","text":"repor ts from, overseeing the annual per formance review of, and making cer tain recommendations in respect of, the","page_number":23,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"e234d963-262d-47b7-9ee4-2bf7af53c9f3","block_type":"box","text":"Fund’s CCO, including, without limitation, determining the amount and structure of the CCO’s compensation. The","page_number":23,"box":{"x":70,"y":302,"width":803,"height":11}},{"id":"260c1503-6e4d-465e-bcd2-2f8084c12f4b","block_type":"box","text":"Board has adopted a written char ter for the Board’s Compliance Committee. During the fiscal year ended","page_number":23,"box":{"x":70,"y":317,"width":747,"height":11}},{"id":"95bcc647-fd41-4c9d-8243-b29172873ebd","block_type":"box","text":"December 31, 2025, the Compliance Committee met four times.","page_number":23,"box":{"x":70,"y":332,"width":460,"height":11}},{"id":"6407af4d-7c36-45fe-89d5-3b7699d20155","block_type":"box","text":"Per formance Oversight Committee.","page_number":23,"box":{"x":102,"y":355,"width":248,"height":11}},{"id":"da8b8bb9-dadb-446a-826e-633209e637ab","block_type":"box","text":"The Board has a Per formance Oversight Committee composed of Ar thur P.","page_number":23,"box":{"x":356,"y":355,"width":530,"height":11}},{"id":"55192442-3574-4284-aee9-ff3d0667bf0c","block_type":"box","text":"Steinmetz (Chair), Cynthia L. Egan, Lorenzo A. Flores, Stayce D. Harris, J. Phillip Holloman, R. Glenn Hubbard and W.","page_number":23,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"8ee612f8-2a43-4848-b4ec-d22550017b6b","block_type":"box","text":"Carl Kester, all of whom are Independent Directors. The Per formance Oversight Committee’s purpose is to assist the","page_number":23,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"5a4a8cbd-57cd-47a6-8e5e-ef2f23f89504","block_type":"box","text":"Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to the Fund’s investment","page_number":23,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"c7e8eaf9-29fe-4914-aa6e-02ac28bfeddf","block_type":"box","text":"objective, policies and practices. The Per formance Oversight Committee’s responsibilities include, without limitation:","page_number":23,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"155fd7a0-01f7-4b23-a040-6546c7b71732","block_type":"box","text":"(i) reviewing the Fund’s investment objective, policies and practices; (ii) recommending to the Board any required","page_number":23,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"20ff9ee7-0107-4132-bf0a-2c019352c86a","block_type":"box","text":"action in respect of changes in fundamental and non-fundamental investment restrictions; (iii) reviewing information","page_number":23,"box":{"x":69,"y":445,"width":824,"height":12}},{"id":"a6eb1949-221e-4f24-895d-fab06aa66a93","block_type":"box","text":"on appropriate benchmarks and competitive universes; (iv) reviewing the Fund’s investment per formance relative to","page_number":23,"box":{"x":69,"y":460,"width":823,"height":12}},{"id":"da770c1e-15de-4e33-bb6e-067b4436efcc","block_type":"box","text":"such benchmarks; (v) reviewing information on unusual or exceptional investment matters; (vi) reviewing whether the","page_number":23,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"5e6b6e70-fe2d-4730-bfa9-162705e48d6e","block_type":"box","text":"Fund has complied with its investment policies and restrictions; and (vii) overseeing policies, procedures and controls","page_number":23,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"90b06c80-eeae-4638-a529-2a87ea665318","block_type":"box","text":"regarding valuation of the Fund’s investments. The Board has adopted a written char ter for the Board’s Per formance","page_number":23,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"dbf3c28d-ca67-4847-a623-7deb7fa5a82a","block_type":"box","text":"Oversight Committee. During the fiscal year ended December 31, 2025, the Per formance Oversight Committee met","page_number":23,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"37e9182b-d8f5-475c-8c4b-619f70c21b19","block_type":"box","text":"four times.","page_number":23,"box":{"x":68,"y":536,"width":76,"height":9}},{"id":"0c31b67d-5a82-430e-824c-ac1e86df43a0","block_type":"box","text":"Securities Lending Committee.","page_number":23,"box":{"x":102,"y":559,"width":217,"height":11}},{"id":"2c160250-c22d-46b6-8051-2dac6195474d","block_type":"box","text":"The Board has a Securities Lending Committee composed of Cynthia L. Egan","page_number":23,"box":{"x":325,"y":559,"width":547,"height":11}},{"id":"235f49e4-f4a0-46b5-96f7-752a058a745f","block_type":"box","text":"(Chair) and W. Carl Kester, both of whom are Independent Directors. The principal responsibilities of the Securities","page_number":23,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"405fc6f3-070d-4131-a304-ef52e48c8d57","block_type":"box","text":"Lending Committee include, without limitation: (i) suppor ting, overseeing and organizing on behalf of the Board the","page_number":23,"box":{"x":70,"y":589,"width":815,"height":11}},{"id":"bf15d8cd-6c2d-4629-9562-62f73df7be06","block_type":"box","text":"process for oversight of the Fund’s securities lending activities; and (ii) providing a recommendation to the Board","page_number":23,"box":{"x":70,"y":604,"width":804,"height":11}},{"id":"322fdbac-ba25-4a00-bc1f-f7558b606371","block_type":"box","text":"regarding the annual approval of the Fund’s Securities Lending Guidelines and the Fund’s agreement with the lending","page_number":23,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"3d82a42b-665b-4370-abb3-723248355711","block_type":"box","text":"agent. The Board has adopted a written char ter for the Board’s Securities Lending Committee. During the fiscal year","page_number":23,"box":{"x":69,"y":634,"width":829,"height":12}},{"id":"2c8aef04-e9b7-4156-8526-038bb014d66b","block_type":"box","text":"ended December 31, 2025, the Securities Lending Committee met two times.","page_number":23,"box":{"x":69,"y":649,"width":555,"height":12}},{"id":"70dfb8e1-3ca3-4682-9352-1cf04c4089f7","block_type":"box","text":"Executive Committee.","page_number":23,"box":{"x":102,"y":672,"width":152,"height":9}},{"id":"c9afad90-a2f2-41d5-a25d-e2765e825fb3","block_type":"box","text":"The Board has an Executive Committee composed of R. Glenn Hubbard (Chair) and W. Carl","page_number":23,"box":{"x":260,"y":672,"width":645,"height":11}},{"id":"fa7815ba-fa31-4b05-8650-2740adf8d475","block_type":"box","text":"Kester, both of whom are Independent Directors, and John M. Perlowski, who serves as an interested Director. The","page_number":23,"box":{"x":70,"y":687,"width":819,"height":11}},{"id":"7defad5b-d27f-4a68-8170-d8aa510b8c0d","block_type":"box","text":"principal responsibilities of the Executive Committee include, without limitation: (i) acting on routine matters between","page_number":23,"box":{"x":70,"y":702,"width":832,"height":12}},{"id":"d43e9f45-5490-43b1-9bdc-d1f6b8b2a6d7","block_type":"box","text":"meetings of the Board; (ii) acting on such matters as may require urgent action between meetings of the Board; and","page_number":23,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"8c6e07bd-4afb-42b3-ab11-c3e923bd9a80","block_type":"box","text":"(iii) exercising such other authority as may from time to time be delegated to the Executive Committee by the Board.","page_number":23,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"1d9f9707-13f9-4da0-9a02-ef1eb1e97825","block_type":"box","text":"The Board has adopted a written char ter for the Board’s Executive Committee. During the fiscal year ended","page_number":23,"box":{"x":68,"y":748,"width":764,"height":11}},{"id":"86551155-b848-4f85-87f2-0d8732dde744","block_type":"box","text":"December 31, 2025, the Executive Committee did not meet.","page_number":23,"box":{"x":70,"y":763,"width":429,"height":10}},{"id":"64ae9307-4b8a-4106-80e4-6966cfc1ff36","block_type":"box","text":"The Independent Directors have adopted a statement of policy that describes the experiences, qualifications,","page_number":23,"box":{"x":101,"y":785,"width":778,"height":12}},{"id":"4e753660-1752-4ce8-8214-56e0d9122756","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":23,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"ab92e2b5-7e8b-49a8-b4cb-a9551b33a794","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":23,"box":{"x":69,"y":816,"width":833,"height":11}},{"id":"dcfcb749-de96-432b-ab1d-d7c44e0511e1","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy as well as the","page_number":23,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"0161bf89-41a0-42b5-b247-8f6fc6b6e3c0","block_type":"box","text":"standards set for th in the Fund’s Bylaws. Fur thermore, in determining that a par ticular Director was and continues to","page_number":23,"box":{"x":69,"y":846,"width":836,"height":11}},{"id":"168b7328-7f3a-4b32-9f0d-5a890a139821","block_type":"box","text":"be qualified to serve as a Director, the Board has considered a variety of criteria, none of which, in isolation, was","page_number":23,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"2de4b5d2-bf96-44df-982d-9a17855b5a88","block_type":"box","text":"controlling. The Board believes that, collectively, the Directors have balanced and diverse experiences, skills,","page_number":23,"box":{"x":69,"y":876,"width":775,"height":11}},{"id":"37a3ffea-8f49-4120-a2f6-d627efa71713","block_type":"box","text":"attributes and qualifications, which allow the Board to operate effectively in governing the Fund and protecting the","page_number":23,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"76f39ec8-fd24-4fbe-b02f-237477ff0c9d","block_type":"box","text":"interests of shareholders. Among the attributes common to all Directors is their ability to review critically, evaluate,","page_number":23,"box":{"x":70,"y":906,"width":817,"height":12}},{"id":"76803e38-66ff-4f2e-bd3e-974f2afadae9","block_type":"box","text":"I-12","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"35f505b6-177b-4db3-9e83-b5dcf3da7fb7","block_type":"box","text":"NM1026U-5982643-23/241","page_number":23,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"5436dd60-f93d-4143-b147-b7a49efbd1ef","block_type":"box","text":"question and discuss information provided to them, to interact effectively with the Manager, sub-advisers, other","page_number":24,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"3b9fb2e5-a4e4-4727-925e-142db79102b7","block_type":"box","text":"service providers, counsel and independent auditors, and to exercise effective business judgment in the","page_number":24,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"58e90b75-e9eb-46ce-9001-54275b8980a5","block_type":"box","text":"per formance of their duties as Directors. Each Director’s ability to per form his or her duties effectively is evidenced","page_number":24,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"a97693f0-9a4b-4a0d-8d93-9eb938a605e3","block_type":"box","text":"by his or her educational background or professional training; business, consulting, public service or academic","page_number":24,"box":{"x":69,"y":90,"width":788,"height":11}},{"id":"5c226efb-4e65-45b5-a1b2-7dac1bb4950c","block_type":"box","text":"positions; experience from service as a board member of the Fund or the other funds in the BlackRock Fund","page_number":24,"box":{"x":70,"y":105,"width":769,"height":11}},{"id":"9484425b-1ef0-4e00-86bd-b3d0c308b351","block_type":"box","text":"Complexes (and any predecessor funds), other investment funds, public companies, or not-for-profit entities or other","page_number":24,"box":{"x":69,"y":120,"width":828,"height":11}},{"id":"56f3418a-941e-4250-af8e-609c119f6dd8","block_type":"box","text":"organizations; ongoing commitment and par ticipation in Board and Committee meetings, as well as his or her","page_number":24,"box":{"x":69,"y":135,"width":782,"height":12}},{"id":"0418f2a8-a155-4f8b-b6a3-9caa616f4598","block_type":"box","text":"leadership of standing and other committees throughout the years; or other relevant life experiences.","page_number":24,"box":{"x":70,"y":150,"width":719,"height":12}},{"id":"256796f0-9a0f-483c-9257-07b18280c25b","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each Director that suppor t the","page_number":24,"box":{"x":101,"y":173,"width":787,"height":11}},{"id":"c5c124fd-b4fa-4bad-bef4-40689c01d008","block_type":"box","text":"conclusion that he or she should serve on the Board.","page_number":24,"box":{"x":69,"y":188,"width":378,"height":9}},{"id":"b1f7c552-d044-4f68-ade0-7e22499fb565","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":24,"box":{"x":69,"y":217,"width":408,"height":8}},{"id":"812368dc-f104-4481-9231-d545e57b7672","block_type":"box","text":"Independent Directors","page_number":24,"box":{"x":70,"y":233,"width":156,"height":11}},{"id":"82aec96c-5be7-4222-8403-6a2a0b1c47b1","block_type":"box","text":"R. Glenn Hubbard R. Glenn Hubbard has served in numerous roles in the field of economics, including as","page_number":24,"box":{"x":70,"y":248,"width":814,"height":11}},{"id":"9dca5670-38a5-4952-aa2e-8ceabc10f320","block_type":"box","text":"the Chairman of the U.S. Council of Economic Advisers of the President of the United","page_number":24,"box":{"x":264,"y":263,"width":606,"height":9}},{"id":"f75742e3-e13a-4c00-946e-30ba98240c33","block_type":"box","text":"States. Dr. Hubbard has served as the Dean of Columbia Business School, as a member","page_number":24,"box":{"x":265,"y":278,"width":635,"height":11}},{"id":"f6d138e9-7088-4841-992a-9e129d559a68","block_type":"box","text":"of the Columbia Faculty and as a Visiting Professor at the John F. Kennedy School of","page_number":24,"box":{"x":265,"y":293,"width":602,"height":12}},{"id":"6aa85c05-614c-4476-ad30-dbbdd48face2","block_type":"box","text":"Government at Harvard University, the Harvard Business School and the University of","page_number":24,"box":{"x":265,"y":309,"width":608,"height":11}},{"id":"6a171143-f307-4a01-a7b0-50ebee2b1000","block_type":"box","text":"Chicago. Dr. Hubbard’s experience as an adviser to the President of the United States","page_number":24,"box":{"x":265,"y":324,"width":613,"height":11}},{"id":"7e91c51b-666d-4fdf-8e6c-f7e3984537a4","block_type":"box","text":"adds a dimension of balance to the Fund’s governance and provides perspective on","page_number":24,"box":{"x":265,"y":339,"width":595,"height":11}},{"id":"11aa971c-0e32-41e4-8933-a05f1c962834","block_type":"box","text":"economic issues. Dr. Hubbard’s service on the boards of ADP and Metropolitan Life","page_number":24,"box":{"x":265,"y":354,"width":597,"height":11}},{"id":"22dc1707-9fdf-4dc3-acc6-347dffc21463","block_type":"box","text":"Insurance Company provides the Board with the benefit of his experience with the","page_number":24,"box":{"x":265,"y":369,"width":581,"height":11}},{"id":"0c522373-a7be-4399-95b1-7a26b5f9c461","block_type":"box","text":"management practices of other financial companies. Dr. Hubbard’s long-standing service","page_number":24,"box":{"x":265,"y":384,"width":632,"height":11}},{"id":"b2bc528f-c14b-487d-8fc9-37f018e1fbe5","block_type":"box","text":"on the boards of directors/trustees of the closed-end funds in the BlackRock Fixed","page_number":24,"box":{"x":265,"y":399,"width":594,"height":11}},{"id":"f2b1fec8-7d9b-4519-bd70-9541e091a6de","block_type":"box","text":"Income Complex also provides him with a specific understanding of the Fund, its","page_number":24,"box":{"x":265,"y":414,"width":573,"height":12}},{"id":"578b1998-5377-4711-b6f1-d2ac8278aa08","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Hubbard’s","page_number":24,"box":{"x":265,"y":429,"width":589,"height":12}},{"id":"3c5bf337-51f3-469a-9495-4af3dc869bb6","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Chair of the","page_number":24,"box":{"x":265,"y":445,"width":595,"height":11}},{"id":"3417d740-d9bd-4c09-a231-f895b6b9e997","block_type":"box","text":"Board, Chair of the Executive Committee and a member of the Governance and","page_number":24,"box":{"x":265,"y":460,"width":562,"height":10}},{"id":"66434976-0688-4a48-8eb6-3e1ca37bc9b6","block_type":"box","text":"Nominating Committee, the Compliance Committee and the Per formance Oversight","page_number":24,"box":{"x":265,"y":475,"width":592,"height":11}},{"id":"b5c1bffc-ff82-4932-b6aa-567ee8500ac6","block_type":"box","text":"Committee.","page_number":24,"box":{"x":265,"y":490,"width":80,"height":9}},{"id":"cc821041-7e82-4371-adcd-c9018c536d50","block_type":"box","text":"W. Carl Kester The Board benefits from W. Carl Kester’s experiences as a professor and author in","page_number":24,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"6d1850c1-f054-46c6-a63a-ba421df1664d","block_type":"box","text":"finance, and his experience as the George Fisher Baker Jr. Professor of Business","page_number":24,"box":{"x":264,"y":528,"width":578,"height":11}},{"id":"b6c174f1-043c-48b3-a7d8-2bd5bb451270","block_type":"box","text":"Administration at Harvard Business School and as Deputy Dean of Academic Affairs at","page_number":24,"box":{"x":264,"y":543,"width":618,"height":11}},{"id":"eaa69785-7929-4394-bd40-487ce6bd6a5a","block_type":"box","text":"Harvard Business School from 2006 through 2010 adds to the Board a wealth of","page_number":24,"box":{"x":265,"y":558,"width":581,"height":11}},{"id":"4d9f844d-36d8-4700-b068-eec8d54b8a85","block_type":"box","text":"exper tise in corporate finance and corporate governance. Dr. Kester has authored and","page_number":24,"box":{"x":265,"y":573,"width":613,"height":11}},{"id":"5fa46ed3-ce29-4a5c-898f-f9ebbda68b6c","block_type":"box","text":"edited numerous books and research papers on both subject matters, including co-editing","page_number":24,"box":{"x":265,"y":588,"width":641,"height":12}},{"id":"0462a521-cd59-4fca-b483-947073039431","block_type":"box","text":"a leading volume of finance case studies used worldwide. Dr. Kester’s long-standing","page_number":24,"box":{"x":265,"y":603,"width":599,"height":12}},{"id":"ce7d4731-9a90-4075-9f77-9a191cbcd2fd","block_type":"box","text":"service on the boards of directors/trustees of the closed-end funds in the BlackRock","page_number":24,"box":{"x":265,"y":618,"width":605,"height":12}},{"id":"c273f91c-e77a-416a-9cec-1040d9d3c20a","block_type":"box","text":"Fixed-Income Complex also provides him with a specific understanding of the Fund, its","page_number":24,"box":{"x":265,"y":634,"width":613,"height":11}},{"id":"8d82d903-35cd-4100-8b80-b6f274a269bf","block_type":"box","text":"operations, and the business and regulatory issues facing the Fund. Dr. Kester’s","page_number":24,"box":{"x":265,"y":649,"width":576,"height":11}},{"id":"7a375131-c0cc-4ec2-8fa7-0cde1423d132","block_type":"box","text":"independence from the Fund and the Manager enhances his service as Vice Chair of the","page_number":24,"box":{"x":265,"y":664,"width":630,"height":11}},{"id":"f1c13715-066c-46b4-bb69-9fd22f403c38","block_type":"box","text":"Board, Chair of the Governance and Nominating Committee and a member of the","page_number":24,"box":{"x":265,"y":679,"width":576,"height":11}},{"id":"82a5600e-3189-4887-a839-373ac19785cc","block_type":"box","text":"Executive Committee, the Compliance Committee, the Per formance Oversight Committee","page_number":24,"box":{"x":265,"y":694,"width":634,"height":11}},{"id":"cf2160fe-16ef-4d52-89fe-6e7aabf43b17","block_type":"box","text":"and the Securities Lending Committee.","page_number":24,"box":{"x":265,"y":709,"width":275,"height":11}},{"id":"a0272ad9-8c47-4a11-8f3b-f1cb84f7eb41","block_type":"box","text":"I-13","page_number":24,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"c05dcd1e-dd53-469d-8335-a58b80b5a59a","block_type":"box","text":"NM1026U-5982643-24/241","page_number":24,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"c2401fa1-18da-41fa-b08e-b1a3b59806ef","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":25,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"d2f83031-f3aa-4586-949e-54558a75a246","block_type":"box","text":"Cynthia L. Egan Cynthia L. Egan brings to the Board a broad and diverse knowledge of investment","page_number":25,"box":{"x":69,"y":65,"width":775,"height":12}},{"id":"70092cdd-4304-45bc-8d68-4a0710e5aae4","block_type":"box","text":"companies and the retirement industry as a result of her many years of experience as","page_number":25,"box":{"x":264,"y":81,"width":613,"height":11}},{"id":"0e817a0a-a8f9-4126-9dc9-966428fe77f3","block_type":"box","text":"President, Retirement Plan Services, for T. Rowe Price Group, Inc. and her various senior","page_number":25,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"7944bd57-8209-4852-9327-ece71b8c768c","block_type":"box","text":"operating officer positions at Fidelity Investments, including her service as Executive Vice","page_number":25,"box":{"x":265,"y":111,"width":636,"height":11}},{"id":"4159b38b-dee9-4f14-906b-4f8c94524fb8","block_type":"box","text":"President of FMR Co., President of Fidelity Institutional Services Company and President","page_number":25,"box":{"x":265,"y":126,"width":629,"height":11}},{"id":"df0942ec-8ebd-43af-8e2e-f566f6fd283d","block_type":"box","text":"of the Fidelity Charitable Gift Fund. Ms. Egan has also served as an advisor to the U.S.","page_number":25,"box":{"x":265,"y":141,"width":617,"height":11}},{"id":"f77c910a-3356-4e3c-8fab-f31e4293eede","block_type":"box","text":"Depar tment of Treasury as an exper t in domestic retirement security. Ms. Egan began her","page_number":25,"box":{"x":265,"y":156,"width":642,"height":11}},{"id":"9fe8e6c7-8f37-4637-a8f0-4872db0f0fdc","block_type":"box","text":"professional career at the Board of Governors of the Federal Reserve and the Federal","page_number":25,"box":{"x":265,"y":171,"width":608,"height":11}},{"id":"5517b9c0-2929-4048-83de-8c57bd8e09a7","block_type":"box","text":"Reserve Bank of New York. Ms. Egan is also a director of UNUM Corporation, a publicly","page_number":25,"box":{"x":265,"y":186,"width":620,"height":12}},{"id":"cbdb52d1-f660-4bde-99d8-29e11e580fb2","block_type":"box","text":"traded insurance company providing personal risk reinsurance, and a director and Chair of","page_number":25,"box":{"x":264,"y":201,"width":643,"height":12}},{"id":"afa98836-9162-480e-9ad6-c934018ac927","block_type":"box","text":"the Board of The Hanover Group, a public proper ty casualty insurance company. Ms. Egan","page_number":25,"box":{"x":264,"y":217,"width":640,"height":11}},{"id":"86c5e3ce-2601-46b3-a64b-a14c7d10c472","block_type":"box","text":"is also the lead independent director and non-executive Vice Chair of the Board of","page_number":25,"box":{"x":265,"y":232,"width":583,"height":11}},{"id":"571fbc52-d578-4e01-9608-829534c99394","block_type":"box","text":"Huntsman Corporation, a publicly traded manufacturer and marketer of chemical products.","page_number":25,"box":{"x":265,"y":247,"width":643,"height":11}},{"id":"22c13bcc-959b-415c-a450-d31128d6d3d5","block_type":"box","text":"Ms. Egan’s independence from the Fund and the Manager enhances her service as Chair","page_number":25,"box":{"x":265,"y":262,"width":636,"height":11}},{"id":"7ef7edbb-229d-450f-8a9c-8a98d1ac128b","block_type":"box","text":"of the Compliance Committee, Chair of the Securities Lending Committee and a member","page_number":25,"box":{"x":265,"y":277,"width":631,"height":11}},{"id":"65c30111-98fb-483a-ab79-cec3771942da","block_type":"box","text":"of the Governance and Nominating Committee and the Per formance Oversight Committee.","page_number":25,"box":{"x":265,"y":292,"width":642,"height":11}},{"id":"3ff9dc62-b6f8-4c9c-a341-9c4cc7aa6ae8","block_type":"box","text":"Lorenzo A. Flores The Board benefits from Lorenzo A. Flores’s many years of business, leadership and","page_number":25,"box":{"x":70,"y":315,"width":796,"height":11}},{"id":"6135b3e1-c16c-4aa0-b27c-4a4a891ce408","block_type":"box","text":"financial experience in his roles at various public and private companies. In par ticular,","page_number":25,"box":{"x":264,"y":330,"width":612,"height":11}},{"id":"1ff199e5-6c65-44f4-9b53-7af3281a4180","block_type":"box","text":"Mr. Flores’s service as Chief Financial Officer of Lattice Semiconductor Corporation, a","page_number":25,"box":{"x":265,"y":345,"width":611,"height":11}},{"id":"219979df-dad1-4343-a4ba-c99d3305a8ce","block_type":"box","text":"semiconductor company that designs, develops, and markets programmable logic","page_number":25,"box":{"x":265,"y":360,"width":582,"height":12}},{"id":"b216b84f-1850-41a4-9ef8-b115dea0bd7c","block_type":"box","text":"products and related software, Chief Financial Officer of Intel Foundry, a semiconductor","page_number":25,"box":{"x":265,"y":375,"width":622,"height":11}},{"id":"a18c14eb-eadd-4f83-a804-2eaa8a8cbd5f","block_type":"box","text":"manufacturing unit of Intel Corporation, Chief Financial Officer and Corporate Controller of","page_number":25,"box":{"x":265,"y":390,"width":639,"height":12}},{"id":"cd377acf-2c63-4c28-86bf-1224fef44e2f","block_type":"box","text":"Xilinx, Inc., a technology and semiconductor company that supplies programmable logic","page_number":25,"box":{"x":264,"y":406,"width":622,"height":11}},{"id":"fa374cde-596d-4aea-8ce1-8f0cac569bb3","block_type":"box","text":"devices, and Vice Chairman of Kioxia, Inc., a manufacturer and supplier of flash memory","page_number":25,"box":{"x":265,"y":421,"width":631,"height":11}},{"id":"de9eacdc-ad8a-43e0-8a15-9d9aea64478a","block_type":"box","text":"and solid state drives, and his long experience in the technology industry allow him to","page_number":25,"box":{"x":265,"y":436,"width":610,"height":11}},{"id":"e0f268d1-e244-4f89-8fbc-8e4fd31b3bd5","block_type":"box","text":"provide insight into financial, business and technology trends. Mr. Flores’s knowledge of","page_number":25,"box":{"x":265,"y":451,"width":629,"height":11}},{"id":"579e1fa4-669d-4927-a798-9801c296811a","block_type":"box","text":"financial and accounting matters qualifies him to serve as Chair of the Audit Committee.","page_number":25,"box":{"x":264,"y":466,"width":630,"height":11}},{"id":"e15ff6a4-cc6a-4376-9105-22aa34ee0c30","block_type":"box","text":"Mr. Flores’s independence from the Fund and the Manager enhances his service as a","page_number":25,"box":{"x":265,"y":481,"width":610,"height":11}},{"id":"6aa97533-8447-4ae9-a7f6-c8cf31ec99e4","block_type":"box","text":"member of the Per formance Oversight Committee.","page_number":25,"box":{"x":265,"y":496,"width":358,"height":12}},{"id":"a22edd88-fa8e-4737-947c-b8ac2f13e38a","block_type":"box","text":"Stayce D. Harris The Board benefits from Stayce D. Harris’s leadership and governance experience gained","page_number":25,"box":{"x":69,"y":519,"width":832,"height":11}},{"id":"ace66f40-dfe2-4cb3-8510-d9f4003090f9","block_type":"box","text":"during her extensive military career, including as a three-star Lieutenant General of the","page_number":25,"box":{"x":265,"y":534,"width":617,"height":11}},{"id":"711a1731-282a-4e0e-9a1a-389fbe129a44","block_type":"box","text":"United States Air Force. In her most recent role, Ms. Harris repor ted to the Secretary and","page_number":25,"box":{"x":265,"y":549,"width":637,"height":11}},{"id":"578c9277-d2aa-42dc-b59a-ff1fd65627b7","block_type":"box","text":"Chief of Staff of the Air Force on matters concerning Air Force effectiveness, efficiency","page_number":25,"box":{"x":265,"y":564,"width":617,"height":12}},{"id":"5e093c12-fcad-4414-b297-81d8c09dd977","block_type":"box","text":"and the military discipline of active duty, Air Force Reserve and Air National Guard forces.","page_number":25,"box":{"x":265,"y":579,"width":635,"height":12}},{"id":"51b673ca-ab04-47fe-974b-677c7e2d1408","block_type":"box","text":"Ms. Harris’s experience on governance matters includes oversight of inspection policy and","page_number":25,"box":{"x":265,"y":595,"width":643,"height":11}},{"id":"5d480eb3-a271-4391-95d9-cbc7b2c58ec4","block_type":"box","text":"the inspection and evaluation system for all Air Force nuclear and conventional forces;","page_number":25,"box":{"x":264,"y":610,"width":614,"height":11}},{"id":"c5ff3d7a-a506-4644-b0f4-376db4afdcda","block_type":"box","text":"oversight of Air Force counterintelligence operations and service on the Air Force","page_number":25,"box":{"x":265,"y":625,"width":573,"height":11}},{"id":"799418c4-2b11-45d7-afcf-772a61d87fd3","block_type":"box","text":"Intelligence Oversight Panel; investigation of fraud, waste and abuse; and oversight of","page_number":25,"box":{"x":265,"y":640,"width":612,"height":11}},{"id":"ff865b12-9b89-4dc0-9cb4-787cfe85a6e4","block_type":"box","text":"criminal investigations and complaints resolution programs. Ms. Harris is also a director","page_number":25,"box":{"x":264,"y":655,"width":630,"height":11}},{"id":"63bdce65-4f2d-4d1d-9eee-824bd49d3bcc","block_type":"box","text":"of The Boeing Company. Ms. Harris’s independence from the Fund and the Manager","page_number":25,"box":{"x":265,"y":670,"width":599,"height":11}},{"id":"e7780a43-0cbb-4d63-897e-07663aa47d85","block_type":"box","text":"enhances her service as a member of the Compliance Committee and the Per formance","page_number":25,"box":{"x":265,"y":685,"width":623,"height":11}},{"id":"0cc41fb8-543e-4ba1-9b89-57d78c2c4947","block_type":"box","text":"Oversight Committee.","page_number":25,"box":{"x":265,"y":700,"width":151,"height":12}},{"id":"3a78e0d6-9141-4154-8767-1c1b18314e5b","block_type":"box","text":"J. Phillip Holloman The Board benefits from J. Phillip Holloman’s many years of business and leadership","page_number":25,"box":{"x":69,"y":723,"width":800,"height":11}},{"id":"6518ed31-5bb2-4845-b86f-c8252771ed2e","block_type":"box","text":"experience as an executive, director and advisory board member of various public and","page_number":25,"box":{"x":265,"y":738,"width":612,"height":11}},{"id":"aa81d434-3e85-4601-aa7e-b7fed8ba8cfa","block_type":"box","text":"private companies. In par ticular, Mr. Holloman’s service as Board Chairman of Vestis","page_number":25,"box":{"x":265,"y":753,"width":607,"height":11}},{"id":"a7842f9c-0d3b-40be-af60-a072ef57ac57","block_type":"box","text":"Corporation, President and Chief Operating Officer of Cintas Corporation allows him to","page_number":25,"box":{"x":265,"y":768,"width":612,"height":12}},{"id":"f724da6e-5089-4f52-9a98-f1033dfa48f7","block_type":"box","text":"provide insight into business trends and conditions. Mr. Holloman’s knowledge of","page_number":25,"box":{"x":265,"y":783,"width":581,"height":12}},{"id":"729f75ca-8de1-4599-98eb-20a56ff0bfeb","block_type":"box","text":"financial and accounting matters qualifies him to serve as a member of the Audit","page_number":25,"box":{"x":264,"y":799,"width":579,"height":11}},{"id":"e95c85d3-3bbd-4296-bae8-937cee735e1c","block_type":"box","text":"Committee. Mr. Holloman’s independence from the Fund and the Manager enhances his","page_number":25,"box":{"x":265,"y":814,"width":629,"height":11}},{"id":"39509952-e8f9-4886-85cf-9fcba73ccf9c","block_type":"box","text":"service as a member of the Governance and Nominating Committee and the Per formance","page_number":25,"box":{"x":265,"y":829,"width":639,"height":11}},{"id":"57d94ff7-2a91-4bf5-a130-bdf443c0fd53","block_type":"box","text":"Oversight Committee.","page_number":25,"box":{"x":265,"y":844,"width":151,"height":11}},{"id":"69586743-f489-497b-b129-4d6c82aaf6c8","block_type":"box","text":"I-14","page_number":25,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"774ae168-b654-484d-b2b8-537230e4c03f","block_type":"box","text":"NM1026U-5982643-25/241","page_number":25,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"beb9ebc1-ef45-49a8-9116-5bd9656bf1f4","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":26,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"6cfd80fc-70e1-40cc-8eac-be1431ca656f","block_type":"box","text":"Ar thur P. Steinmetz The Board benefits from Ar thur P. Steinmetz’s many years of business and leadership","page_number":26,"box":{"x":68,"y":65,"width":808,"height":12}},{"id":"7a2798e8-142a-4a21-b6b2-2c329e9b1efa","block_type":"box","text":"experience as an executive, chairman and director of various companies in the financial","page_number":26,"box":{"x":265,"y":81,"width":624,"height":11}},{"id":"f48176cd-791e-4ff3-b1ef-4ed75b366de6","block_type":"box","text":"industry. Mr. Steinmetz’s service as Chairman, Chief Executive Officer and President of","page_number":26,"box":{"x":265,"y":96,"width":622,"height":11}},{"id":"416d1b32-3e4c-450c-b241-410d4bd2612f","block_type":"box","text":"the OppenheimerFunds, Inc. and as Trustee, President and Principal Executive Officer of","page_number":26,"box":{"x":264,"y":111,"width":629,"height":11}},{"id":"e28e24a8-031c-4ec1-8baf-823fbb57c978","block_type":"box","text":"cer tain OppenheimerFunds funds provides insight into the asset management industry.","page_number":26,"box":{"x":264,"y":126,"width":621,"height":11}},{"id":"b8876a7c-cc7f-4273-bd5b-fa1ab3e7f141","block_type":"box","text":"He has also served as a Director of ScotiaBank (U.S.). Mr. Steinmetz’s knowledge of","page_number":26,"box":{"x":265,"y":141,"width":604,"height":11}},{"id":"9c932ee4-c7c1-427b-8fae-e5b50e0a9365","block_type":"box","text":"financial and accounting matters qualifies him to serve as a member of the Audit","page_number":26,"box":{"x":264,"y":156,"width":579,"height":11}},{"id":"bd8c384e-7e54-431a-ae72-0aa5ae711176","block_type":"box","text":"Committee. Mr. Steinmetz’s independence from the Fund and the Manager enhances his","page_number":26,"box":{"x":265,"y":171,"width":632,"height":12}},{"id":"d480477f-7f38-427a-b3bf-59d35eea1d24","block_type":"box","text":"service as Chair of the Per formance Oversight Committee.","page_number":26,"box":{"x":265,"y":186,"width":415,"height":12}},{"id":"5595cad1-68e2-49d0-9faf-1f4936cee678","block_type":"box","text":"Interested Directors","page_number":26,"box":{"x":70,"y":209,"width":140,"height":9}},{"id":"c4e1e321-a410-4903-b8c7-45df814860c8","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":26,"box":{"x":70,"y":224,"width":823,"height":11}},{"id":"67bbf44e-f20d-4847-82c4-65171cfb557b","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":26,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"15444821-c95f-452d-8362-9b78e5604b69","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":26,"box":{"x":265,"y":254,"width":629,"height":12}},{"id":"99dd27d4-a0a5-4e44-97e5-6b4109fc121d","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":26,"box":{"x":265,"y":269,"width":639,"height":11}},{"id":"97aabeea-8803-4f01-aeef-46def4879ea3","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":26,"box":{"x":265,"y":285,"width":617,"height":11}},{"id":"6bd07b56-e298-42ff-9bdd-4c48432855fa","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":26,"box":{"x":264,"y":300,"width":634,"height":11}},{"id":"3783079a-7ed7-49c8-9144-c1e535e20f3d","block_type":"box","text":"a Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":26,"box":{"x":265,"y":315,"width":637,"height":10}},{"id":"0dcef896-21d9-44ac-9c69-c3164a0c1360","block_type":"box","text":"and iShares","page_number":26,"box":{"x":265,"y":330,"width":84,"height":9}},{"id":"064ade91-ab1a-450d-b6b4-8aa201c05303","block_type":"box","text":"®","page_number":26,"box":{"x":350,"y":330,"width":6,"height":5}},{"id":"e54d4f5f-6874-4219-9d0d-296a0608b864","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":26,"box":{"x":362,"y":330,"width":478,"height":11}},{"id":"e6a1b7ff-b23e-4b8e-91f8-24b28cf14e5d","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":26,"box":{"x":265,"y":345,"width":585,"height":11}},{"id":"f2fa4bd0-cc04-4c51-9d47-e7c362cc76e9","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":26,"box":{"x":265,"y":360,"width":620,"height":12}},{"id":"9eb32d5e-ed02-420a-9dcd-8192661500db","block_type":"box","text":"serves as a board member for the funds in the BlackRock Multi-Asset Complex.","page_number":26,"box":{"x":265,"y":375,"width":565,"height":11}},{"id":"5d7ad0f3-a143-4ecb-b97d-948240776a96","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Managing Director of BlackRock, Inc. since 2009, as","page_number":26,"box":{"x":69,"y":398,"width":821,"height":11}},{"id":"2138a302-381b-47e8-8c5e-317d06178cab","block_type":"box","text":"the Head of BlackRock Global Accounting and Product Services since 2009, and as","page_number":26,"box":{"x":264,"y":413,"width":595,"height":11}},{"id":"80f3582f-bded-4f8f-8ea8-3eeb60c9d94a","block_type":"box","text":"President and Chief Executive Officer of the Fund provides him with a strong","page_number":26,"box":{"x":265,"y":428,"width":542,"height":12}},{"id":"8d4209cf-a3e4-4481-8f9a-100dac4c82c5","block_type":"box","text":"understanding of the Fund, its operations, and the business and regulatory issues facing","page_number":26,"box":{"x":265,"y":443,"width":634,"height":12}},{"id":"d6ea0d7a-41b3-4357-96e7-d190bb2c1f74","block_type":"box","text":"the Fund. Mr. Perlowski’s prior position as Managing Director and Chief Operating Officer","page_number":26,"box":{"x":264,"y":458,"width":633,"height":12}},{"id":"fb25672b-d024-429d-a6c8-e6f9d5d06518","block_type":"box","text":"of the Global Product Group at Goldman Sachs Asset Management, and his former","page_number":26,"box":{"x":265,"y":474,"width":589,"height":11}},{"id":"7cf211c6-8faa-4495-9ca1-b6e8295e1235","block_type":"box","text":"service as Treasurer and Senior Vice President of the Goldman Sachs Mutual Funds and","page_number":26,"box":{"x":265,"y":489,"width":629,"height":9}},{"id":"8d6f7c90-e1f8-4d37-aade-5bce559d0bd5","block_type":"box","text":"as Director of the Goldman Sachs Offshore Funds provides the Board with the benefit of","page_number":26,"box":{"x":265,"y":504,"width":629,"height":11}},{"id":"b80847df-dd11-4448-88ea-59d27ce7cd21","block_type":"box","text":"his experience with the management practices of other financial companies. Mr. Perlowski","page_number":26,"box":{"x":265,"y":519,"width":641,"height":11}},{"id":"56dc1ee8-0c19-4708-a5ca-4829bfa9479f","block_type":"box","text":"also serves as a board member for the funds in the BlackRock Multi-Asset Complex.","page_number":26,"box":{"x":265,"y":534,"width":600,"height":11}},{"id":"e6e30273-7eff-4ec7-b872-a30b02d58913","block_type":"box","text":"Mr. Perlowski is a member of BlackRock’s Global Executive Committee. Mr. Perlowski’s","page_number":26,"box":{"x":265,"y":549,"width":620,"height":9}},{"id":"b1038bea-6a28-4493-8894-041009451961","block_type":"box","text":"experience with BlackRock enhances his service as a member of the Executive","page_number":26,"box":{"x":265,"y":564,"width":561,"height":11}},{"id":"fc03d5a3-d593-4dae-9f1c-49f66f9a42a4","block_type":"box","text":"Committee.","page_number":26,"box":{"x":265,"y":580,"width":80,"height":8}},{"id":"563feb16-b4d5-449f-a067-843934b652d7","block_type":"box","text":"Biographical Information","page_number":26,"box":{"x":69,"y":611,"width":178,"height":11}},{"id":"4cacd4c6-183d-4b76-9fe7-cd11e54cf23f","block_type":"box","text":"Cer tain biographical and other information relating to the Directors is set for th below, including their address and","page_number":26,"box":{"x":102,"y":634,"width":806,"height":11}},{"id":"e6102a41-a6cd-4f14-b3d6-2a0d53fdecab","block_type":"box","text":"year of bir th, principal occupations for at least the last five years, length of time served, total number of registered","page_number":26,"box":{"x":68,"y":649,"width":819,"height":11}},{"id":"af04fe23-5790-4a90-9dd4-ed5718e4c490","block_type":"box","text":"investment companies and investment por tfolios overseen in the BlackRock-advised Funds and any currently held","page_number":26,"box":{"x":70,"y":664,"width":808,"height":11}},{"id":"795f3a87-a5f8-4bca-a38b-9bd7c4c7ac0b","block_type":"box","text":"public company and other investment company directorships.","page_number":26,"box":{"x":70,"y":679,"width":434,"height":11}},{"id":"5a26f445-8549-48f5-b44f-d8dba3f37b11","block_type":"box","text":"I-15","page_number":26,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"7af38dde-d4cf-44fa-90b7-03021d35e902","block_type":"box","text":"NM1026U-5982643-26/241","page_number":26,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"ec431801-b8df-46d1-b024-959e811132a3","block_type":"box","text":"Name","page_number":27,"box":{"x":131,"y":150,"width":32,"height":7}},{"id":"2f2bccc6-4603-4404-be87-edba5fceb1f3","block_type":"box","text":"and Year of Birth","page_number":27,"box":{"x":93,"y":160,"width":97,"height":7}},{"id":"e044ad93-ae91-45ec-9895-518a19152d5d","block_type":"box","text":"1,2","page_number":27,"box":{"x":191,"y":160,"width":9,"height":4}},{"id":"ed25cbc2-05b4-4141-91d5-8f40e98d7a16","block_type":"box","text":"Position(s)","page_number":27,"box":{"x":252,"y":130,"width":62,"height":8}},{"id":"f43a024b-8b6c-4ee2-a63b-a7a0f6d5e104","block_type":"box","text":"Held","page_number":27,"box":{"x":271,"y":140,"width":25,"height":7}},{"id":"03648dc5-1479-4f72-b3ea-0e9373f26ba9","block_type":"box","text":"(Length of","page_number":27,"box":{"x":254,"y":150,"width":60,"height":9}},{"id":"2098ab17-51c4-4bd5-ba72-bd72e60a7680","block_type":"box","text":"Service)","page_number":27,"box":{"x":257,"y":160,"width":48,"height":9}},{"id":"de02f17e-57b2-46a1-a81a-f3fd0e5c2a7d","block_type":"box","text":"3","page_number":27,"box":{"x":306,"y":160,"width":3,"height":3}},{"id":"ef6194db-fac1-4859-a5cb-fd1a63d42d59","block_type":"box","text":"Principal Occupation(s)","page_number":27,"box":{"x":411,"y":150,"width":136,"height":9}},{"id":"8a57e8de-2421-49b2-96ab-ade034547a02","block_type":"box","text":"During Past Five Years","page_number":27,"box":{"x":414,"y":160,"width":130,"height":9}},{"id":"27410a49-69c2-434a-b369-1e58bb748a94","block_type":"box","text":"Number of","page_number":27,"box":{"x":665,"y":49,"width":59,"height":7}},{"id":"44991d0a-c1b9-419a-8ad2-9ef4d90c8563","block_type":"box","text":"BlackRock","page_number":27,"box":{"x":662,"y":59,"width":66,"height":7}},{"id":"572facfc-23a8-44fd-a0e4-029f4d2e8465","block_type":"box","text":"Advised","page_number":27,"box":{"x":672,"y":69,"width":45,"height":7}},{"id":"8f5cbac2-2551-4911-9737-c5cb8422776a","block_type":"box","text":"Registered","page_number":27,"box":{"x":663,"y":79,"width":62,"height":9}},{"id":"1ed9fe86-df39-453b-9f86-14f42ec8c19c","block_type":"box","text":"Investment","page_number":27,"box":{"x":662,"y":89,"width":65,"height":7}},{"id":"d0bdee98-b116-472c-b2dd-9143f1b4cd85","block_type":"box","text":"Companies","page_number":27,"box":{"x":663,"y":99,"width":63,"height":9}},{"id":"3b9d7c05-92a2-48e6-b524-285a7f0ce89a","block_type":"box","text":"(“RICs”)","page_number":27,"box":{"x":670,"y":109,"width":48,"height":9}},{"id":"bd71d023-b84e-4534-9376-0209e34bfacc","block_type":"box","text":"Consisting of","page_number":27,"box":{"x":656,"y":120,"width":77,"height":8}},{"id":"05635011-a395-4019-a42d-c647e8edf1f4","block_type":"box","text":"Investment","page_number":27,"box":{"x":662,"y":130,"width":65,"height":7}},{"id":"8b49f180-6a8b-4fec-9997-ba7cb8df77dc","block_type":"box","text":"Portfolios","page_number":27,"box":{"x":667,"y":140,"width":55,"height":7}},{"id":"4a886bf0-71bc-4eb6-9a99-41173282b29c","block_type":"box","text":"(“Portfolios”)","page_number":27,"box":{"x":655,"y":150,"width":78,"height":9}},{"id":"a0422cec-07df-49b5-9a08-c83ed715b845","block_type":"box","text":"Overseen","page_number":27,"box":{"x":668,"y":160,"width":53,"height":7}},{"id":"6c3c1635-e17d-48ff-98ec-38b7f757023f","block_type":"box","text":"Public","page_number":27,"box":{"x":824,"y":89,"width":35,"height":7}},{"id":"c6f57ea5-2c5a-46b6-bce4-757b51227df9","block_type":"box","text":"Company","page_number":27,"box":{"x":815,"y":99,"width":53,"height":9}},{"id":"bc1db171-8cb9-49ad-9042-a0e434ec4da7","block_type":"box","text":"and Other","page_number":27,"box":{"x":813,"y":109,"width":57,"height":8}},{"id":"368bdbf1-ac38-4dac-8299-7e1c86853311","block_type":"box","text":"Investment","page_number":27,"box":{"x":809,"y":120,"width":64,"height":7}},{"id":"c470e68d-14f9-4c40-882c-9e2658f96237","block_type":"box","text":"Company","page_number":27,"box":{"x":815,"y":130,"width":53,"height":8}},{"id":"9336f178-75d3-4581-9327-3f240b6678d6","block_type":"box","text":"Directorships","page_number":27,"box":{"x":803,"y":140,"width":77,"height":8}},{"id":"20c31e56-74aa-4d85-acf9-ac11e3d7bf17","block_type":"box","text":"Held During","page_number":27,"box":{"x":808,"y":150,"width":67,"height":9}},{"id":"a637916e-b151-4ed1-85c2-e91cf7114222","block_type":"box","text":"Past Five Years","page_number":27,"box":{"x":797,"y":160,"width":88,"height":7}},{"id":"54093d45-584f-4231-b322-6b5e00a1ea88","block_type":"box","text":"Independent Directors","page_number":27,"box":{"x":70,"y":174,"width":141,"height":10}},{"id":"31a0530a-1df1-44ce-a93e-64791dfc03dd","block_type":"box","text":"R. Glenn Hubbard","page_number":27,"box":{"x":69,"y":192,"width":106,"height":8}},{"id":"dd8128fe-81fd-4e77-8f0c-6e654bba0e62","block_type":"box","text":"1958","page_number":27,"box":{"x":69,"y":208,"width":33,"height":8}},{"id":"043af61d-49f5-464a-a949-6f8bd29ebd52","block_type":"box","text":"Chair of the","page_number":27,"box":{"x":235,"y":192,"width":69,"height":8}},{"id":"17a2a0a3-c3b6-4daa-8451-737b85612475","block_type":"box","text":"Board","page_number":27,"box":{"x":236,"y":204,"width":34,"height":8}},{"id":"cd6141b1-b735-4acb-9d21-a74f5e339078","block_type":"box","text":"(Since 2022)","page_number":27,"box":{"x":235,"y":216,"width":78,"height":10}},{"id":"cf5d0032-d86e-4b42-8b55-1acda1726420","block_type":"box","text":"and","page_number":27,"box":{"x":235,"y":228,"width":22,"height":8}},{"id":"0f39d0ec-e38f-4111-a7ed-5569b1b1137c","block_type":"box","text":"Director","page_number":27,"box":{"x":236,"y":240,"width":46,"height":8}},{"id":"4e6c9610-f182-4a71-9af5-43bda8bb03e3","block_type":"box","text":"(Since 2019)","page_number":27,"box":{"x":235,"y":252,"width":78,"height":9}},{"id":"75027283-f0c8-4d45-a8ed-c48f945f87be","block_type":"box","text":"Dean, Columbia Business School from 2004","page_number":27,"box":{"x":343,"y":192,"width":270,"height":9}},{"id":"6479acce-f574-4f00-a96b-c8ee4ad1e864","block_type":"box","text":"to 2019; Faculty member, Columbia","page_number":27,"box":{"x":342,"y":204,"width":217,"height":10}},{"id":"e21573e0-6ae1-4077-8c66-a3a6b37472af","block_type":"box","text":"Business School since 1988.","page_number":27,"box":{"x":343,"y":216,"width":177,"height":8}},{"id":"1618ed47-35f5-441f-a169-207edaa37ee3","block_type":"box","text":"50 RICs consisting of","page_number":27,"box":{"x":627,"y":192,"width":129,"height":10}},{"id":"69d7b4f3-8a20-4d61-a13b-fb047bf9bccd","block_type":"box","text":"83 Portfolios","page_number":27,"box":{"x":626,"y":204,"width":78,"height":8}},{"id":"e0684773-a15b-471e-a0a1-b0df3932dbbc","block_type":"box","text":"ADP (data and","page_number":27,"box":{"x":773,"y":192,"width":85,"height":10}},{"id":"23abcb17-1bf1-4340-903e-3c52b0203259","block_type":"box","text":"information services)","page_number":27,"box":{"x":774,"y":204,"width":126,"height":10}},{"id":"107b1e47-93e5-4573-9662-6ec602b7e148","block_type":"box","text":"from 2004 to 2020;","page_number":27,"box":{"x":773,"y":216,"width":121,"height":9}},{"id":"1436c033-fa2a-44f3-b47c-ff86f5427596","block_type":"box","text":"Metropolitan Life","page_number":27,"box":{"x":774,"y":228,"width":100,"height":9}},{"id":"a3f18df4-8c9d-456f-baeb-00de28dfe945","block_type":"box","text":"Insurance Company","page_number":27,"box":{"x":774,"y":240,"width":118,"height":10}},{"id":"cff438f3-da59-4326-a0ac-ce6e901ba744","block_type":"box","text":"(insurance);","page_number":27,"box":{"x":773,"y":252,"width":70,"height":9}},{"id":"87f5a869-953b-4423-8492-8c886e2320be","block_type":"box","text":"TotalEnergies SE","page_number":27,"box":{"x":773,"y":264,"width":101,"height":10}},{"id":"ec3c58f5-444e-44a5-b070-b307f765db5c","block_type":"box","text":"(multi-energy)","page_number":27,"box":{"x":773,"y":276,"width":80,"height":10}},{"id":"ddecf8fa-7f10-402c-a189-90eae9df8371","block_type":"box","text":"W. Carl Kester4","page_number":27,"box":{"x":68,"y":293,"width":86,"height":8}},{"id":"30e97604-9213-424f-8fe6-6f5c630b0ec8","block_type":"box","text":"r4","page_number":27,"box":{"x":154,"y":293,"width":4,"height":4}},{"id":"d331e2c6-524b-4509-a21a-1bfae21e4b2e","block_type":"box","text":"1951","page_number":27,"box":{"x":69,"y":309,"width":33,"height":8}},{"id":"3bec2d38-4f99-4fec-9255-075e4e24f07a","block_type":"box","text":"Vice Chair of","page_number":27,"box":{"x":235,"y":293,"width":76,"height":8}},{"id":"84fd6db6-74c7-4f0a-8090-2456455a6807","block_type":"box","text":"the Board","page_number":27,"box":{"x":235,"y":305,"width":58,"height":8}},{"id":"aee76479-54e2-44ac-82a9-8cb78b430fc5","block_type":"box","text":"(Since 2022)","page_number":27,"box":{"x":235,"y":317,"width":78,"height":10}},{"id":"fcb5f7cb-3acf-47d3-ab09-83a0ffa1c0cf","block_type":"box","text":"and","page_number":27,"box":{"x":235,"y":329,"width":22,"height":8}},{"id":"f5982fd3-fd06-460f-9369-ad3ed033641e","block_type":"box","text":"Director","page_number":27,"box":{"x":236,"y":341,"width":46,"height":8}},{"id":"47c1b734-93fc-495e-bf6b-422e35d12dc7","block_type":"box","text":"(Since 2019)","page_number":27,"box":{"x":235,"y":353,"width":78,"height":10}},{"id":"0b535be1-353f-430c-b874-5c0b1db34795","block_type":"box","text":"Baker Foundation Professor and George","page_number":27,"box":{"x":343,"y":293,"width":240,"height":10}},{"id":"a86f7f4c-0bfd-42ad-ac0e-914bf17365d7","block_type":"box","text":"Fisher Baker Jr. Professor of Business","page_number":27,"box":{"x":343,"y":305,"width":228,"height":8}},{"id":"e19253ef-f4f3-4e34-9e64-0035dc93da1e","block_type":"box","text":"Administration, Emeritus, Harvard Business","page_number":27,"box":{"x":342,"y":317,"width":264,"height":9}},{"id":"30deb063-c6ac-4afa-bc2e-87c630d73f4c","block_type":"box","text":"School since 2022; George Fisher Baker Jr.","page_number":27,"box":{"x":343,"y":329,"width":261,"height":10}},{"id":"6c31a07e-5d1c-4690-b5a2-ac1f9f8270df","block_type":"box","text":"Professor of Business Administration,","page_number":27,"box":{"x":343,"y":341,"width":226,"height":9}},{"id":"b6b336ab-4140-4c77-9784-5a960a59f580","block_type":"box","text":"Harvard Business School from 2008 to","page_number":27,"box":{"x":343,"y":353,"width":237,"height":8}},{"id":"66bc95fb-5162-44e5-b7c3-53f1a06b316c","block_type":"box","text":"2022; Deputy Dean for Academic Affairs","page_number":27,"box":{"x":343,"y":365,"width":243,"height":10}},{"id":"e800f8de-e36b-4a74-90e7-307322ad68d4","block_type":"box","text":"from 2006 to 2010; Chairman of the","page_number":27,"box":{"x":342,"y":377,"width":224,"height":9}},{"id":"1b856157-fe63-4bad-b5fd-aed0266c4953","block_type":"box","text":"Finance Unit, from 2005 to 2006; Senior","page_number":27,"box":{"x":343,"y":389,"width":247,"height":9}},{"id":"5650f9a3-e1f3-4c1e-b96a-0129b14568d8","block_type":"box","text":"Associate Dean and Chairman of the MBA","page_number":27,"box":{"x":342,"y":401,"width":255,"height":8}},{"id":"71f4132b-5f0c-4189-96e8-69c563e6d9dc","block_type":"box","text":"Program from 1999 to 2005; Member of the","page_number":27,"box":{"x":343,"y":413,"width":269,"height":10}},{"id":"64d45fe4-6118-4826-9827-d735aae5c79c","block_type":"box","text":"faculty of Harvard Business School since","page_number":27,"box":{"x":342,"y":425,"width":247,"height":10}},{"id":"9c9303e3-b5c7-41b4-a0c3-192134c275e9","block_type":"box","text":"1981.","page_number":27,"box":{"x":343,"y":437,"width":36,"height":8}},{"id":"e10b48ee-57c3-4758-a9e0-f0b67a850eac","block_type":"box","text":"52 RICs consisting of","page_number":27,"box":{"x":627,"y":293,"width":129,"height":10}},{"id":"cfaa07b6-aff3-4242-8e2b-917b1a242a25","block_type":"box","text":"85 Portfolios","page_number":27,"box":{"x":626,"y":305,"width":78,"height":8}},{"id":"0124fe14-e7f3-46d1-a2fc-a1c67c1cfdc1","block_type":"box","text":"None","page_number":27,"box":{"x":774,"y":293,"width":30,"height":8}},{"id":"3343d785-a920-4b88-aaa8-c70f12f5b0c2","block_type":"box","text":"Cynthia L. Egan","page_number":27,"box":{"x":69,"y":454,"width":92,"height":11}},{"id":"f00fda9f-13e7-4b5c-b57d-30fca9a62255","block_type":"box","text":"4","page_number":27,"box":{"x":162,"y":454,"width":3,"height":4}},{"id":"c5992123-fb89-4a05-afaf-6bc5d04bc7b0","block_type":"box","text":"1955","page_number":27,"box":{"x":69,"y":470,"width":33,"height":8}},{"id":"804daf58-87c5-4d84-a533-53188dda672d","block_type":"box","text":"Director","page_number":27,"box":{"x":236,"y":455,"width":46,"height":7}},{"id":"2c5d0e0a-60a8-4d64-88d2-7d36ec686cf0","block_type":"box","text":"(Since 2019)","page_number":27,"box":{"x":235,"y":466,"width":78,"height":10}},{"id":"d1941f0a-d75e-4231-91c2-68eea07b0bd7","block_type":"box","text":"Advisor, U.S. Department of the Treasury","page_number":27,"box":{"x":342,"y":454,"width":249,"height":10}},{"id":"b14ef26a-4b62-4d69-b37f-fe57281fa443","block_type":"box","text":"from 2014 to 2015; President, Retirement","page_number":27,"box":{"x":342,"y":466,"width":259,"height":10}},{"id":"1b3cffed-1d4d-4daa-864a-fc58d3b27ce4","block_type":"box","text":"Plan Services, for T. Rowe Price Group, Inc.","page_number":27,"box":{"x":343,"y":478,"width":258,"height":10}},{"id":"fd136f41-1f33-4fc1-ac42-6e18bfeb3d7f","block_type":"box","text":"from 2007 to 2012; executive positions","page_number":27,"box":{"x":342,"y":490,"width":242,"height":10}},{"id":"19b86349-eac1-4165-8223-d1b0e1b7a890","block_type":"box","text":"within Fidelity Investments from 1989 to","page_number":27,"box":{"x":342,"y":502,"width":243,"height":10}},{"id":"2e22f563-bccc-4a04-9d3b-c6709ab9f0d8","block_type":"box","text":"2007.","page_number":27,"box":{"x":343,"y":514,"width":36,"height":8}},{"id":"41bf036c-03ae-43b1-8110-1f4498fb0a1a","block_type":"box","text":"52 RICs consisting of","page_number":27,"box":{"x":627,"y":454,"width":129,"height":11}},{"id":"21d625fa-f394-4177-a889-2984255373da","block_type":"box","text":"85 Portfolios","page_number":27,"box":{"x":626,"y":466,"width":78,"height":8}},{"id":"8991e0e0-5d26-4a50-828e-74b83d59ddb0","block_type":"box","text":"Unum (insurance); The","page_number":27,"box":{"x":774,"y":455,"width":135,"height":9}},{"id":"96cb9d72-f03f-4f6d-baa5-0e1b72ce9977","block_type":"box","text":"Hanover Insurance","page_number":27,"box":{"x":774,"y":467,"width":111,"height":7}},{"id":"37cc10d0-41fc-43c4-8b87-51899165cbbc","block_type":"box","text":"Group (Board Chair);","page_number":27,"box":{"x":773,"y":478,"width":122,"height":10}},{"id":"2a4930f5-0e81-485e-a235-3d471769a95a","block_type":"box","text":"Huntsman Corporation","page_number":27,"box":{"x":774,"y":490,"width":134,"height":10}},{"id":"b4b14671-caff-4f6e-96af-24b999dcc3cc","block_type":"box","text":"(Lead Independent","page_number":27,"box":{"x":773,"y":502,"width":113,"height":10}},{"id":"63846f89-0921-46b2-9ed4-4959b2daaf8f","block_type":"box","text":"Director and non","page_number":27,"box":{"x":774,"y":514,"width":102,"height":8}},{"id":"31886e95-4b68-4bb2-a226-dafd708d6bd9","block_type":"box","text":"Executive Vice Chair of","page_number":27,"box":{"x":774,"y":526,"width":136,"height":8}},{"id":"b681a926-5e4f-44c0-8d77-5e3c3c1d39a6","block_type":"box","text":"the Board) (chemical","page_number":27,"box":{"x":773,"y":538,"width":124,"height":10}},{"id":"f79dd370-334d-40c1-ba42-3c8697cf3271","block_type":"box","text":"products)","page_number":27,"box":{"x":774,"y":550,"width":55,"height":10}},{"id":"482b5767-81f3-458e-a738-95c91a2a3400","block_type":"box","text":"Lorenzo A. Flores","page_number":27,"box":{"x":69,"y":568,"width":103,"height":8}},{"id":"2934017c-275f-4e38-9233-93c139a74625","block_type":"box","text":"1964","page_number":27,"box":{"x":69,"y":584,"width":33,"height":8}},{"id":"bf4a6ac8-7c97-4469-9972-0573b8474a75","block_type":"box","text":"Director","page_number":27,"box":{"x":236,"y":568,"width":46,"height":8}},{"id":"0a2e3f2f-88af-4662-a260-46bdb069b023","block_type":"box","text":"(Since 2021)","page_number":27,"box":{"x":235,"y":580,"width":78,"height":10}},{"id":"bb58e203-8e80-4418-9dee-ef25c9fbb8b8","block_type":"box","text":"Chief Financial Officer, Lattice Semiconductor","page_number":27,"box":{"x":343,"y":568,"width":273,"height":9}},{"id":"4a386d81-f4c2-43f2-9207-4dcfbbf8082e","block_type":"box","text":"Corporation (LSCC) since 2025; Chief","page_number":27,"box":{"x":343,"y":580,"width":227,"height":10}},{"id":"281eb892-64bc-4d69-8955-4b741cf3585d","block_type":"box","text":"Financial Officer, Intel Foundry from 2024 to","page_number":27,"box":{"x":343,"y":592,"width":266,"height":10}},{"id":"e8525ac5-8629-4a93-b3af-e891dd38397e","block_type":"box","text":"2025; Vice Chairman, Kioxia, Inc. from 2019","page_number":27,"box":{"x":343,"y":604,"width":271,"height":9}},{"id":"1b67d436-2c7c-4133-a5a1-f26368a7a8a8","block_type":"box","text":"to 2024; Chief Financial Officer, Xilinx, Inc.","page_number":27,"box":{"x":342,"y":616,"width":255,"height":9}},{"id":"e620a5ff-f5f2-4e48-a972-1e4260167808","block_type":"box","text":"from 2016 to 2019; Corporate Controller,","page_number":27,"box":{"x":342,"y":628,"width":250,"height":9}},{"id":"3090e84e-dd81-4386-9458-d599e4a13232","block_type":"box","text":"Xilinx, Inc. from 2008 to 2016.","page_number":27,"box":{"x":342,"y":640,"width":186,"height":9}},{"id":"d563e997-cfeb-48e3-ae8a-af9e1ecd48c1","block_type":"box","text":"50 RICs consisting of","page_number":27,"box":{"x":627,"y":568,"width":129,"height":10}},{"id":"c036ff25-2024-40ab-ae19-8da54dd51006","block_type":"box","text":"83 Portfolios","page_number":27,"box":{"x":626,"y":580,"width":78,"height":8}},{"id":"6fcd1ee1-4c4d-414b-8a3c-0fbf39c5e2d1","block_type":"box","text":"None","page_number":27,"box":{"x":774,"y":568,"width":30,"height":8}},{"id":"021921f6-f548-4b41-9e6c-41bfe751a8c6","block_type":"box","text":"Stayce D. Harris","page_number":27,"box":{"x":69,"y":657,"width":97,"height":10}},{"id":"06d1ccf2-6b4e-45ae-b35f-515096b36218","block_type":"box","text":"1959","page_number":27,"box":{"x":69,"y":673,"width":33,"height":8}},{"id":"5e809f5e-1f4e-429d-bdb8-541c8bb3c489","block_type":"box","text":"Director","page_number":27,"box":{"x":236,"y":657,"width":46,"height":8}},{"id":"7a24dca5-b431-452b-9ec4-023c14ed6d47","block_type":"box","text":"(Since 2021)","page_number":27,"box":{"x":235,"y":669,"width":78,"height":10}},{"id":"dc5c5816-a174-499f-a765-619fe0c2b81d","block_type":"box","text":"Lieutenant General, Inspector General of the","page_number":27,"box":{"x":343,"y":657,"width":267,"height":10}},{"id":"db2c625b-279f-46bb-937c-74dc5f07e9ce","block_type":"box","text":"United States Air Force from 2017 to 2019;","page_number":27,"box":{"x":343,"y":669,"width":263,"height":10}},{"id":"d447cb48-a427-4710-8cb6-937a74e27d63","block_type":"box","text":"Lieutenant General, Assistant Vice Chief of","page_number":27,"box":{"x":343,"y":681,"width":258,"height":10}},{"id":"76a60d0d-c9ce-4f4f-924b-6911472f8931","block_type":"box","text":"Staff and Director, Air Staff, United States Air","page_number":27,"box":{"x":343,"y":693,"width":272,"height":10}},{"id":"d0e3c746-ccaf-4096-b6e5-4ee2603a8027","block_type":"box","text":"Force from 2016 to 2017; Major General,","page_number":27,"box":{"x":343,"y":705,"width":250,"height":10}},{"id":"59dd5eed-b2c9-4511-9b40-beb8f35a46a0","block_type":"box","text":"Commander, 22nd Air Force, AFRC, Dobbins","page_number":27,"box":{"x":343,"y":717,"width":265,"height":9}},{"id":"f04f6348-31f6-4d4b-9d02-b958038b2fd5","block_type":"box","text":"Air Reserve Base, Georgia from 2014 to","page_number":27,"box":{"x":342,"y":729,"width":244,"height":10}},{"id":"b6f6aaad-abc3-402f-8918-361338ae58a1","block_type":"box","text":"2016; Pilot, United Airlines from 1990 to","page_number":27,"box":{"x":343,"y":741,"width":246,"height":9}},{"id":"05b45510-2aeb-4837-bbca-2a5de33f0de1","block_type":"box","text":"2020.","page_number":27,"box":{"x":343,"y":753,"width":36,"height":8}},{"id":"8e266a92-26c1-462a-8f9a-1edd48dafcbf","block_type":"box","text":"50 RICs consisting of","page_number":27,"box":{"x":627,"y":657,"width":129,"height":10}},{"id":"6e2ec2c0-836f-407b-875d-601b553818a4","block_type":"box","text":"83 Portfolios","page_number":27,"box":{"x":626,"y":669,"width":78,"height":8}},{"id":"e8533bb2-8156-471d-9794-6e3359c8e919","block_type":"box","text":"KULR Technology","page_number":27,"box":{"x":774,"y":657,"width":102,"height":10}},{"id":"487464bd-4e2d-411b-8711-7a7d95b0db67","block_type":"box","text":"Group, Inc. in 2021;","page_number":27,"box":{"x":773,"y":669,"width":121,"height":10}},{"id":"1c00725d-9c1e-4df5-8409-28a8e4fe3b09","block_type":"box","text":"The Boeing Company","page_number":27,"box":{"x":773,"y":681,"width":127,"height":10}},{"id":"e517249c-d920-49a8-85b8-cd5c1ad90fac","block_type":"box","text":"(airplane","page_number":27,"box":{"x":773,"y":693,"width":51,"height":10}},{"id":"5c83b0ba-252e-448d-829b-a898b0ab3913","block_type":"box","text":"manufacturer)","page_number":27,"box":{"x":774,"y":705,"width":83,"height":10}},{"id":"4a4dda1f-71b0-4efb-9264-7fa5dfe997e6","block_type":"box","text":"J. Phillip Holloman","page_number":27,"box":{"x":69,"y":771,"width":109,"height":9}},{"id":"7c6e2414-86fe-40d9-a887-7aaa94061509","block_type":"box","text":"1955","page_number":27,"box":{"x":69,"y":786,"width":33,"height":8}},{"id":"f0b93fe6-a7ac-4a60-90f5-5248449160a1","block_type":"box","text":"Director","page_number":27,"box":{"x":236,"y":771,"width":46,"height":8}},{"id":"c56699ea-9074-407c-a122-8336d2f308e7","block_type":"box","text":"(Since 2021)","page_number":27,"box":{"x":235,"y":783,"width":78,"height":9}},{"id":"92c015bb-99ad-495e-985a-8f3afccfc2e6","block_type":"box","text":"Board Chairman of Vestis Corporation since","page_number":27,"box":{"x":343,"y":771,"width":262,"height":9}},{"id":"9e95adc6-10b7-4f67-88ed-cc580c837655","block_type":"box","text":"2023; Interim Executive Chairman, President","page_number":27,"box":{"x":343,"y":783,"width":270,"height":9}},{"id":"e985574d-f41f-4a4b-9b90-987f92df6c6f","block_type":"box","text":"and Chief Executive Officer of Vestis","page_number":27,"box":{"x":343,"y":794,"width":216,"height":9}},{"id":"a432b3dd-a31b-4011-91d2-19e8763ca274","block_type":"box","text":"Corporation from April 2025 to July 2025;","page_number":27,"box":{"x":343,"y":806,"width":250,"height":11}},{"id":"ed42af98-b4b0-4a8a-b767-de2dc2ee5869","block_type":"box","text":"President and Chief Operating Officer, Cintas","page_number":27,"box":{"x":343,"y":818,"width":269,"height":11}},{"id":"ebf0f2f5-5b9c-4e11-b8ed-463a7a47bdc3","block_type":"box","text":"Corporation from 2008 to 2018.","page_number":27,"box":{"x":343,"y":830,"width":195,"height":10}},{"id":"86fa4d6e-c27f-420a-a1cb-5e44092f3943","block_type":"box","text":"50 RICs consisting of","page_number":27,"box":{"x":627,"y":771,"width":129,"height":10}},{"id":"6b9bad80-4d78-4e34-bdc6-822db7fa8cef","block_type":"box","text":"83 Portfolios","page_number":27,"box":{"x":626,"y":783,"width":78,"height":8}},{"id":"9531d578-c17c-42b4-ac41-8d6d7447a387","block_type":"box","text":"Vestis Corporation","page_number":27,"box":{"x":773,"y":771,"width":109,"height":9}},{"id":"dd1ccf74-bb81-4073-bd71-6123230df4a0","block_type":"box","text":"(uniforms and","page_number":27,"box":{"x":773,"y":783,"width":83,"height":9}},{"id":"55968f3d-e657-43c4-aba7-4ce31a7268f9","block_type":"box","text":"facilities services)","page_number":27,"box":{"x":773,"y":794,"width":108,"height":10}},{"id":"2ca712a0-0ba9-4941-80bf-798a2472b82d","block_type":"box","text":"I-16","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"54714b84-4733-4318-b583-7008fadede69","block_type":"box","text":"NM1026U-5982643-27/241","page_number":27,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"644c2bec-5877-431e-b41e-f97071ff01c3","block_type":"box","text":"Name","page_number":28,"box":{"x":131,"y":150,"width":32,"height":7}},{"id":"3d9ac3cb-e1df-43a6-92e1-84bd085ef864","block_type":"box","text":"and Year of Birth","page_number":28,"box":{"x":93,"y":160,"width":97,"height":7}},{"id":"c1a7b97d-54e9-44f0-bcf7-1e91318ece55","block_type":"box","text":"1,2","page_number":28,"box":{"x":191,"y":160,"width":9,"height":4}},{"id":"bfa9fd4a-24c6-4289-806e-6f6d3a66c4cd","block_type":"box","text":"Position(s)","page_number":28,"box":{"x":252,"y":130,"width":62,"height":8}},{"id":"1a550107-39aa-4c3b-83e6-bddf2a602304","block_type":"box","text":"Held","page_number":28,"box":{"x":271,"y":140,"width":25,"height":7}},{"id":"582bfb86-8c55-41a7-b8ca-b3475104f3bd","block_type":"box","text":"(Length of","page_number":28,"box":{"x":254,"y":150,"width":60,"height":9}},{"id":"3463522e-6fbe-4828-a3d4-8b3f417c2dec","block_type":"box","text":"Service)","page_number":28,"box":{"x":257,"y":160,"width":48,"height":9}},{"id":"a3ba59f0-8226-4dae-bde2-ed4af174e733","block_type":"box","text":"3","page_number":28,"box":{"x":306,"y":160,"width":3,"height":3}},{"id":"51387b57-aa42-46f3-8181-3004ac1c536d","block_type":"box","text":"Principal Occupation(s)","page_number":28,"box":{"x":411,"y":150,"width":136,"height":9}},{"id":"aacc9946-c830-4d1b-9466-7aa90ef6d3dd","block_type":"box","text":"During Past Five Years","page_number":28,"box":{"x":414,"y":160,"width":130,"height":9}},{"id":"78323bf9-0c6b-4679-bea8-50970638bdb6","block_type":"box","text":"Number of","page_number":28,"box":{"x":665,"y":49,"width":59,"height":7}},{"id":"5cf5bc50-d1a5-40fc-ba56-fd2033da6ed3","block_type":"box","text":"BlackRock","page_number":28,"box":{"x":662,"y":59,"width":66,"height":7}},{"id":"2c617f96-34a5-4fdb-95bc-5543c6281678","block_type":"box","text":"Advised","page_number":28,"box":{"x":672,"y":69,"width":45,"height":7}},{"id":"6850046f-e112-436e-9cd4-b290c3fde624","block_type":"box","text":"Registered","page_number":28,"box":{"x":663,"y":79,"width":62,"height":9}},{"id":"d189c657-9c8e-444b-a944-de297faef1a5","block_type":"box","text":"Investment","page_number":28,"box":{"x":662,"y":89,"width":65,"height":7}},{"id":"979966b6-80e2-468b-a660-0f6d16acf753","block_type":"box","text":"Companies","page_number":28,"box":{"x":663,"y":99,"width":63,"height":9}},{"id":"bad6a5fc-be0c-4fe5-a659-24e3e4588718","block_type":"box","text":"(“RICs”)","page_number":28,"box":{"x":670,"y":109,"width":48,"height":9}},{"id":"7e2b2a0e-7dcd-4b82-a71d-78a111b0b005","block_type":"box","text":"Consisting of","page_number":28,"box":{"x":656,"y":120,"width":77,"height":8}},{"id":"87575a1a-8350-4ef6-b987-b7d374d1d174","block_type":"box","text":"Investment","page_number":28,"box":{"x":662,"y":130,"width":65,"height":7}},{"id":"20c9ab03-935d-4917-b47e-a509bd19fdc0","block_type":"box","text":"Portfolios","page_number":28,"box":{"x":667,"y":140,"width":55,"height":7}},{"id":"9e6b35c9-ca1a-45b9-b20e-98fb6cf66abf","block_type":"box","text":"(“Portfolios”)","page_number":28,"box":{"x":655,"y":150,"width":78,"height":9}},{"id":"5c14b44f-138a-47cc-85dd-03c34610124c","block_type":"box","text":"Overseen","page_number":28,"box":{"x":668,"y":160,"width":53,"height":7}},{"id":"f9fb0e04-6e3d-4bc0-bca8-b235ccc95d6b","block_type":"box","text":"Public","page_number":28,"box":{"x":824,"y":89,"width":35,"height":7}},{"id":"f5e4ac52-9545-4066-84fb-56fe4bb09856","block_type":"box","text":"Company","page_number":28,"box":{"x":815,"y":99,"width":53,"height":9}},{"id":"0ba7f5de-d92a-4d0a-8adf-b0f329124b0c","block_type":"box","text":"and Other","page_number":28,"box":{"x":813,"y":109,"width":57,"height":8}},{"id":"1915e8bf-c0cc-4bbd-a06f-8bed24e1a740","block_type":"box","text":"Investment","page_number":28,"box":{"x":809,"y":120,"width":64,"height":7}},{"id":"6b1f8417-6dd8-4721-a135-c5f7872eecb2","block_type":"box","text":"Company","page_number":28,"box":{"x":815,"y":130,"width":53,"height":8}},{"id":"7225f043-40d7-40e3-bfa7-022fb75ea8c9","block_type":"box","text":"Directorships","page_number":28,"box":{"x":803,"y":140,"width":77,"height":8}},{"id":"13224263-517e-484e-828f-a8e77c936d61","block_type":"box","text":"Held During","page_number":28,"box":{"x":808,"y":150,"width":67,"height":9}},{"id":"1804bb97-32a6-4671-aa8c-cabe967accd4","block_type":"box","text":"Past Five Years","page_number":28,"box":{"x":797,"y":160,"width":88,"height":7}},{"id":"81a22ae4-d465-47af-a923-5fe880156027","block_type":"box","text":"Arthur P. Steinmetz","page_number":28,"box":{"x":68,"y":174,"width":116,"height":8}},{"id":"77594b7f-214a-4505-bf2e-fce14c1f1319","block_type":"box","text":"4","page_number":28,"box":{"x":184,"y":174,"width":4,"height":4}},{"id":"737fb341-b976-47ae-b7fb-cae74e13e64d","block_type":"box","text":"1958","page_number":28,"box":{"x":69,"y":190,"width":33,"height":8}},{"id":"04000f89-6f0f-42da-9a7c-1fd1594f0475","block_type":"box","text":"Director","page_number":28,"box":{"x":236,"y":174,"width":46,"height":8}},{"id":"b83afb3f-0d91-4b3a-a3da-4b9d6b19381f","block_type":"box","text":"(Since 2023)","page_number":28,"box":{"x":235,"y":186,"width":78,"height":10}},{"id":"36aa31f3-bb49-47d5-b2af-a2eadcecb6c3","block_type":"box","text":"Trustee of Denison University since 2020;","page_number":28,"box":{"x":342,"y":174,"width":253,"height":10}},{"id":"6a3949c0-8e1f-45c6-ae9e-2d116b043fa0","block_type":"box","text":"Consultant, Posit PBC (enterprise data","page_number":28,"box":{"x":343,"y":186,"width":231,"height":10}},{"id":"069a75e2-239f-497c-94e4-e6a404127542","block_type":"box","text":"science) since 2020; Director, ScotiaBank","page_number":28,"box":{"x":343,"y":198,"width":254,"height":10}},{"id":"4a5ee1de-3532-4174-88a7-4b71db41274c","block_type":"box","text":"(U.S.) from 2020 to 2023; Chairman, Chief","page_number":28,"box":{"x":343,"y":210,"width":261,"height":10}},{"id":"b8052daf-f05f-4937-986a-6addb5a503c5","block_type":"box","text":"Executive Officer and President of","page_number":28,"box":{"x":343,"y":222,"width":203,"height":8}},{"id":"31da4e62-fae4-4ece-a053-720bea541895","block_type":"box","text":"OppenheimerFunds, Inc. from 2015, 2014","page_number":28,"box":{"x":343,"y":234,"width":257,"height":10}},{"id":"e1550d0c-f590-496b-a4d6-4451adff27d6","block_type":"box","text":"and 2013, respectively to 2019; Trustee,","page_number":28,"box":{"x":343,"y":246,"width":248,"height":10}},{"id":"c1d85bfc-2c8c-48d2-9590-7f096ae64cb4","block_type":"box","text":"President and Principal Executive Officer of","page_number":28,"box":{"x":343,"y":258,"width":258,"height":10}},{"id":"023d7cce-f3f5-433f-bf54-9f3488652370","block_type":"box","text":"104 OppenheimerFunds funds from 2014 to","page_number":28,"box":{"x":343,"y":270,"width":268,"height":10}},{"id":"a8836878-31e2-4801-8f9a-d359ee4db60d","block_type":"box","text":"2019; Portfolio manager of various","page_number":28,"box":{"x":343,"y":282,"width":211,"height":10}},{"id":"cfd99905-34cf-4e7a-b997-8e3ac5d942ad","block_type":"box","text":"OppenheimerFunds fixed income mutual","page_number":28,"box":{"x":343,"y":294,"width":241,"height":10}},{"id":"4c30c087-08fd-443e-b907-b4b7c42c775f","block_type":"box","text":"funds from 1986 to 2014.","page_number":28,"box":{"x":342,"y":306,"width":160,"height":8}},{"id":"10c70b15-ed3a-440b-96df-06886f30b63b","block_type":"box","text":"52 RICs consisting of","page_number":28,"box":{"x":627,"y":174,"width":129,"height":10}},{"id":"75f7aaaa-55fc-48c5-a999-aecdb6b5501e","block_type":"box","text":"85 Portfolios","page_number":28,"box":{"x":626,"y":186,"width":78,"height":8}},{"id":"12d34523-1448-458f-acb0-c7c02c2ac900","block_type":"box","text":"None","page_number":28,"box":{"x":774,"y":174,"width":30,"height":8}},{"id":"4671a15b-e93c-451e-b3e1-1987a24b0b43","block_type":"box","text":"Interested Directors","page_number":28,"box":{"x":70,"y":326,"width":126,"height":8}},{"id":"0ac8e762-e709-4bc8-95e1-736343d08d93","block_type":"box","text":"6","page_number":28,"box":{"x":196,"y":322,"width":4,"height":4}},{"id":"4e54f008-57c8-49a6-aa15-9bbfadf3057f","block_type":"box","text":"Robert Fairbairn","page_number":28,"box":{"x":69,"y":344,"width":96,"height":8}},{"id":"bab3d446-e1f5-4f71-b360-c42f0e34de70","block_type":"box","text":"1965","page_number":28,"box":{"x":69,"y":359,"width":33,"height":8}},{"id":"d1f5014b-9e8b-4692-9654-6b3e8ffc3c2b","block_type":"box","text":"Director","page_number":28,"box":{"x":236,"y":344,"width":46,"height":8}},{"id":"ef3c1354-d4f1-4317-877f-b1aa44f30472","block_type":"box","text":"(Since 2015)","page_number":28,"box":{"x":235,"y":356,"width":78,"height":9}},{"id":"bae07adb-c086-48d8-a287-be6a01d57e2d","block_type":"box","text":"Vice Chairman of BlackRock, Inc. since","page_number":28,"box":{"x":342,"y":343,"width":235,"height":10}},{"id":"47348234-6779-4c0b-821c-b8c1b72e7241","block_type":"box","text":"2019; Member of BlackRock’s Global","page_number":28,"box":{"x":343,"y":355,"width":225,"height":10}},{"id":"d4a3272b-789b-45b9-94b1-b88fd57af05d","block_type":"box","text":"Operating Committee; Co-Chair of","page_number":28,"box":{"x":343,"y":367,"width":202,"height":11}},{"id":"5344869a-9e57-4708-8377-96f84a805edf","block_type":"box","text":"BlackRock’s Human Capital Committee;","page_number":28,"box":{"x":343,"y":379,"width":240,"height":10}},{"id":"e87be24f-2d85-457d-ac52-40fc0ab71129","block_type":"box","text":"Senior Managing Director of BlackRock, Inc.","page_number":28,"box":{"x":343,"y":391,"width":262,"height":11}},{"id":"b453e8d4-9e66-4f99-ab2c-3692126fb390","block_type":"box","text":"from 2010 to 2019; oversaw BlackRock’s","page_number":28,"box":{"x":342,"y":403,"width":254,"height":10}},{"id":"23eebadc-893d-43be-b032-f05d34d07982","block_type":"box","text":"Strategic Partner Program and Strategic","page_number":28,"box":{"x":343,"y":415,"width":239,"height":10}},{"id":"f5edff1d-4053-4934-baf9-bbcae6d7de72","block_type":"box","text":"Product Management Group from 2012 to","page_number":28,"box":{"x":343,"y":427,"width":254,"height":10}},{"id":"5d1a59f2-4c31-4daf-8732-3acb38234f5d","block_type":"box","text":"2019; Member of the Board of Managers of","page_number":28,"box":{"x":343,"y":439,"width":265,"height":10}},{"id":"65c8402b-cb37-47f2-acc4-7ac84f9d384d","block_type":"box","text":"BlackRock Investments, LLC from 2011 to","page_number":28,"box":{"x":343,"y":451,"width":255,"height":10}},{"id":"4a94d713-12f7-41ef-97fa-a943d4561c81","block_type":"box","text":"2018; Global Head of BlackRock’s Retail","page_number":28,"box":{"x":343,"y":463,"width":245,"height":10}},{"id":"705b90c4-643e-4f0d-a6af-75e1ab0bfaf3","block_type":"box","text":"and iShares","page_number":28,"box":{"x":343,"y":475,"width":72,"height":8}},{"id":"0dd64cf3-9917-4758-8498-8cd4300d1ff4","block_type":"box","text":"®","page_number":28,"box":{"x":415,"y":475,"width":5,"height":4}},{"id":"a968145d-4497-4a6f-b067-2ff72900602f","block_type":"box","text":"businesses from 2012 to","page_number":28,"box":{"x":425,"y":475,"width":153,"height":8}},{"id":"765844f2-de52-4e89-a86c-e5cb23650308","block_type":"box","text":"2016.","page_number":28,"box":{"x":343,"y":487,"width":36,"height":8}},{"id":"5f0cf0b1-4545-4608-a438-d99344a65ea2","block_type":"box","text":"76 RICs consisting of","page_number":28,"box":{"x":627,"y":343,"width":129,"height":11}},{"id":"e25adfe7-f62d-47d7-ac08-55e51a6e3b33","block_type":"box","text":"252 Portfolios","page_number":28,"box":{"x":627,"y":355,"width":85,"height":9}},{"id":"ae8f8b1d-7d1b-4fe1-961e-37f670de4a4e","block_type":"box","text":"None","page_number":28,"box":{"x":774,"y":344,"width":30,"height":8}},{"id":"7c620586-f40f-40e6-9936-26a7a6d9612e","block_type":"box","text":"John M. Perlowski","page_number":28,"box":{"x":69,"y":505,"width":107,"height":8}},{"id":"9e56ef58-bd24-4f12-8536-98d235086701","block_type":"box","text":"4","page_number":28,"box":{"x":177,"y":505,"width":4,"height":4}},{"id":"a8d7e4d0-7ade-4dfe-b828-bf969f7a1551","block_type":"box","text":"1964","page_number":28,"box":{"x":69,"y":521,"width":33,"height":8}},{"id":"8b2532c7-2d4d-4f8f-bb40-bcaa52862d59","block_type":"box","text":"Director","page_number":28,"box":{"x":236,"y":505,"width":46,"height":8}},{"id":"41f11734-979e-42d0-84e9-0a7544a5e601","block_type":"box","text":"(Since 2015)","page_number":28,"box":{"x":235,"y":517,"width":78,"height":10}},{"id":"c1b07bb9-1825-405a-8a21-d8cfb30426a8","block_type":"box","text":"President and","page_number":28,"box":{"x":236,"y":529,"width":82,"height":8}},{"id":"0a69ede7-2b43-4d3f-b580-ee9d29deb095","block_type":"box","text":"Chief","page_number":28,"box":{"x":235,"y":541,"width":31,"height":8}},{"id":"fff32ec9-b152-417a-8588-2a9c51f2149f","block_type":"box","text":"Executive","page_number":28,"box":{"x":236,"y":553,"width":55,"height":8}},{"id":"ade0adca-1421-4c2b-ae02-bc57bce540bf","block_type":"box","text":"Officer","page_number":28,"box":{"x":235,"y":565,"width":40,"height":8}},{"id":"df5b490a-f1aa-4641-a26c-f555b805120c","block_type":"box","text":"(Since 2010)","page_number":28,"box":{"x":235,"y":577,"width":78,"height":9}},{"id":"914bdf40-7fa5-46db-8387-261d6a915380","block_type":"box","text":"Managing Director of BlackRock, Inc. since","page_number":28,"box":{"x":343,"y":505,"width":256,"height":10}},{"id":"5daa6655-3444-4eee-b9d7-9e5d8fb8946d","block_type":"box","text":"2009; Head of BlackRock Global Accounting","page_number":28,"box":{"x":343,"y":517,"width":267,"height":10}},{"id":"a0b08f85-ec07-417c-9a99-14dce28db494","block_type":"box","text":"and Product Services since 2009; Advisory","page_number":28,"box":{"x":343,"y":529,"width":261,"height":10}},{"id":"71a53c2b-6c90-4745-a610-387b18059127","block_type":"box","text":"Director of Family Resource Network","page_number":28,"box":{"x":343,"y":541,"width":218,"height":10}},{"id":"e840b694-d9c3-413d-8989-ca23482f92aa","block_type":"box","text":"(charitable foundation) since 2009; Member","page_number":28,"box":{"x":343,"y":553,"width":266,"height":10}},{"id":"a1e8b05a-cbe8-410b-809b-1748c8370ad1","block_type":"box","text":"of BlackRock’s Global Executive Committee","page_number":28,"box":{"x":343,"y":565,"width":261,"height":8}},{"id":"4d83f021-7178-4763-ac07-9a4a8d3e8dc1","block_type":"box","text":"since 2025.","page_number":28,"box":{"x":343,"y":577,"width":72,"height":8}},{"id":"f0224895-a2c3-4245-a78e-027e08ab9b8a","block_type":"box","text":"78 RICs consisting of","page_number":28,"box":{"x":627,"y":505,"width":129,"height":10}},{"id":"5820b560-c3d9-4d47-b6b7-9d1c2b41427f","block_type":"box","text":"254 Portfolios","page_number":28,"box":{"x":627,"y":517,"width":85,"height":8}},{"id":"5154ac01-b16e-494a-89c5-05300a6d0183","block_type":"box","text":"None","page_number":28,"box":{"x":774,"y":505,"width":30,"height":8}},{"id":"4130861d-7e49-4b0d-9bcb-0fa8c3cdd60e","block_type":"box","text":"1","page_number":28,"box":{"x":69,"y":600,"width":3,"height":4}},{"id":"64f6e837-a6b4-41aa-ae7e-6aeee99cfc2a","block_type":"box","text":"The address of each Director is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001.","page_number":28,"box":{"x":93,"y":600,"width":565,"height":9}},{"id":"f27df8c4-44e0-4619-abd3-93a835b9a91f","block_type":"box","text":"2","page_number":28,"box":{"x":69,"y":613,"width":3,"height":3}},{"id":"2a855d95-5972-498d-a94a-4b4d4f83b9ac","block_type":"box","text":"Each Independent Director holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation,","page_number":28,"box":{"x":94,"y":613,"width":784,"height":9}},{"id":"d051af3b-53b8-415b-b75f-6cc11848b397","block_type":"box","text":"retirement or removal as provided by the Fund’s by-laws or char ter or statute, or until December 31 of the year in which he or she turns 75.","page_number":28,"box":{"x":94,"y":623,"width":794,"height":9}},{"id":"b54c23ef-01d9-4e6e-8f44-3bd79d38f7aa","block_type":"box","text":"Directors who are “interested persons,” as defined in the Investment Company Act (each, an “Interested Director”), serve until their successor","page_number":28,"box":{"x":94,"y":633,"width":815,"height":9}},{"id":"f1f5416c-d4ba-4943-b641-c469e3d07947","block_type":"box","text":"is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Fund’s by-laws or statute, or until","page_number":28,"box":{"x":94,"y":643,"width":810,"height":9}},{"id":"3ee755f5-6bde-4555-942c-d407232c94ca","block_type":"box","text":"December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Directors on a case-by-case","page_number":28,"box":{"x":94,"y":653,"width":786,"height":9}},{"id":"84ec668f-d291-460e-b955-2f6b715096c6","block_type":"box","text":"basis, as appropriate.","page_number":28,"box":{"x":94,"y":663,"width":123,"height":9}},{"id":"25edb93b-3779-4feb-b445-f853578b705a","block_type":"box","text":"3","page_number":28,"box":{"x":69,"y":676,"width":3,"height":3}},{"id":"de2ad25c-d980-489c-901c-65b0b005db16","block_type":"box","text":"Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy","page_number":28,"box":{"x":94,"y":676,"width":790,"height":9}},{"id":"133b7801-1964-43f8-bbf7-50f364e0410a","block_type":"box","text":"MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Cer tain Independent Directors","page_number":28,"box":{"x":94,"y":686,"width":805,"height":9}},{"id":"14e60b27-e30c-4927-898f-b0189fdcf7f0","block_type":"box","text":"first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: R. Glenn Hubbard, 2004 and W. Carl Kester,","page_number":28,"box":{"x":93,"y":696,"width":806,"height":9}},{"id":"34e17e34-8892-48e2-a5ad-60575e64387a","block_type":"box","text":"1995. Cer tain other Independent Directors first became members of the boards of the closed-end funds in the BlackRock Fixed-Income","page_number":28,"box":{"x":94,"y":706,"width":770,"height":9}},{"id":"cec0cae5-4a1f-4a13-bde7-c81b626a101d","block_type":"box","text":"Complex as follows: Cynthia L. Egan, 2016.","page_number":28,"box":{"x":93,"y":716,"width":248,"height":9}},{"id":"59d36310-da0e-4210-b7cf-5d9019f46ac3","block_type":"box","text":"4","page_number":28,"box":{"x":68,"y":729,"width":4,"height":3}},{"id":"be233627-19f1-431c-9284-06c1840a53af","block_type":"box","text":"Ms. Egan, Dr. Kester, Mr. Steinmetz and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund and BlackRock Private","page_number":28,"box":{"x":94,"y":729,"width":771,"height":9}},{"id":"e100e16b-fb4f-44f5-b52e-5e09d2c3ff22","block_type":"box","text":"Investments Fund.","page_number":28,"box":{"x":94,"y":739,"width":103,"height":7}},{"id":"1eb08149-2ee3-4e86-969b-336607e11069","block_type":"box","text":"5","page_number":28,"box":{"x":69,"y":751,"width":3,"height":4}},{"id":"05e7540d-0681-42da-9476-1cb9b33798ad","block_type":"box","text":"Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the Investment Company Act, of the Fund based on their positions","page_number":28,"box":{"x":94,"y":751,"width":813,"height":9}},{"id":"3590de0b-562b-4e2e-a81b-20780e8f3fd4","block_type":"box","text":"with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.","page_number":28,"box":{"x":93,"y":761,"width":762,"height":9}},{"id":"a8ab8b2f-5495-4d6f-a2dc-423cb04debdc","block_type":"box","text":"Cer tain biographical and other information relating to the officers of the Fund who are not Directors is set for th","page_number":28,"box":{"x":102,"y":782,"width":788,"height":12}},{"id":"2fb15dd3-3f91-41d4-b23e-ee95c9cd675b","block_type":"box","text":"below, including their address and year of bir th, principal occupations for at least the last five years and length of","page_number":28,"box":{"x":69,"y":797,"width":808,"height":12}},{"id":"823b6446-820b-4ce5-bf5e-bc3840785778","block_type":"box","text":"time served.","page_number":28,"box":{"x":68,"y":813,"width":89,"height":9}},{"id":"6c6650a5-26db-4d73-b2cb-dc9587344d1e","block_type":"box","text":"Name","page_number":28,"box":{"x":160,"y":841,"width":32,"height":7}},{"id":"7fc123bf-9e34-4410-b7e8-0182109fd499","block_type":"box","text":"and Year of Birth","page_number":28,"box":{"x":122,"y":851,"width":97,"height":7}},{"id":"8a7ff33d-ef3f-4814-97d3-4cab27a92870","block_type":"box","text":"1,2","page_number":28,"box":{"x":220,"y":851,"width":10,"height":4}},{"id":"42c4335b-0b69-49d1-95ec-06b25c34e5b0","block_type":"box","text":"Position(s) Held","page_number":28,"box":{"x":335,"y":841,"width":93,"height":9}},{"id":"645d2eb6-9f36-4974-93b0-2115a4c5ab5b","block_type":"box","text":"(Length of Service)","page_number":28,"box":{"x":326,"y":851,"width":110,"height":9}},{"id":"3f367a7f-14d6-48a4-8d84-1050ff974d8b","block_type":"box","text":"Principal Occupation(s)","page_number":28,"box":{"x":626,"y":841,"width":136,"height":9}},{"id":"76c0ec3a-6d1a-4963-9ba4-a3cb7802c3f9","block_type":"box","text":"During Past Five Years","page_number":28,"box":{"x":629,"y":851,"width":131,"height":9}},{"id":"469a1cb4-dd00-4907-b8eb-47da130070c0","block_type":"box","text":"Officers Who Are Not Directors","page_number":28,"box":{"x":69,"y":865,"width":197,"height":8}},{"id":"fa2e764d-568a-4fac-a416-d09be7c0a2d9","block_type":"box","text":"Jennifer McGovern","page_number":28,"box":{"x":69,"y":883,"width":110,"height":8}},{"id":"c096be41-f3ae-4d19-a7d9-93f16630756c","block_type":"box","text":"1977","page_number":28,"box":{"x":69,"y":899,"width":32,"height":8}},{"id":"c44685d5-175d-4e16-a5cb-8dc46051dd68","block_type":"box","text":"Vice President","page_number":28,"box":{"x":293,"y":883,"width":87,"height":8}},{"id":"996aa474-0887-4e1a-b1f0-f265c9e51efe","block_type":"box","text":"(Since 2014)","page_number":28,"box":{"x":294,"y":895,"width":78,"height":10}},{"id":"efe58130-76ef-4dbe-9803-c5572249a46c","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2016.","page_number":28,"box":{"x":480,"y":883,"width":297,"height":10}},{"id":"256c3cb9-cc57-4ed6-8e2e-b225be3418a5","block_type":"box","text":"I-17","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"d2bf7d78-4da5-4ce4-a148-f8006fa752b1","block_type":"box","text":"NM1026U-5982643-28/241","page_number":28,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"331f73c0-9801-4eb1-92eb-9531987e26c8","block_type":"box","text":"Name","page_number":29,"box":{"x":160,"y":49,"width":32,"height":7}},{"id":"54c7c0de-b092-41e2-9702-c463243895b3","block_type":"box","text":"and Year of Birth","page_number":29,"box":{"x":122,"y":59,"width":97,"height":7}},{"id":"43824c0e-191c-4f3e-aab3-6ad42ca37682","block_type":"box","text":"1,2","page_number":29,"box":{"x":220,"y":59,"width":10,"height":4}},{"id":"6325e0f0-ce11-44ea-a959-bcfbb64856e5","block_type":"box","text":"Position(s) Held","page_number":29,"box":{"x":335,"y":49,"width":93,"height":9}},{"id":"4a3836fc-d8dc-4256-bfaa-9f23bcb0fd4f","block_type":"box","text":"(Length of Service)","page_number":29,"box":{"x":326,"y":59,"width":110,"height":9}},{"id":"0acf0897-487a-47f3-9ac8-311161dbb1c5","block_type":"box","text":"Principal Occupation(s)","page_number":29,"box":{"x":626,"y":49,"width":136,"height":9}},{"id":"4b603e0d-ef3c-4187-beff-495d0d0062a9","block_type":"box","text":"During Past Five Years","page_number":29,"box":{"x":629,"y":59,"width":131,"height":9}},{"id":"7c2ce3e9-f10e-4298-997f-e9ccd36dd96b","block_type":"box","text":"Trent Walker","page_number":29,"box":{"x":68,"y":73,"width":75,"height":8}},{"id":"6479363a-1663-47fa-9f70-51bbd5dc5c77","block_type":"box","text":"1974","page_number":29,"box":{"x":69,"y":89,"width":33,"height":8}},{"id":"f51ee9d0-469c-41b2-8bf8-716ecc328f72","block_type":"box","text":"Chief","page_number":29,"box":{"x":294,"y":73,"width":31,"height":8}},{"id":"cbd98753-230a-49df-9091-bba3ae8431e4","block_type":"box","text":"Financial","page_number":29,"box":{"x":294,"y":85,"width":51,"height":8}},{"id":"5362171a-fefa-406e-8b43-46f2d31fd248","block_type":"box","text":"Officer","page_number":29,"box":{"x":294,"y":97,"width":40,"height":8}},{"id":"cffbe530-11c7-4c9d-a62e-b37994246a40","block_type":"box","text":"(Since 2021)","page_number":29,"box":{"x":294,"y":109,"width":78,"height":10}},{"id":"564772ef-d9ea-4a19-a468-23bb97f9b958","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019; Executive Vice","page_number":29,"box":{"x":480,"y":73,"width":388,"height":10}},{"id":"aca3dd8b-d360-436d-82a0-55941154695b","block_type":"box","text":"President of PIMCO from 2016 to 2019.","page_number":29,"box":{"x":480,"y":85,"width":242,"height":8}},{"id":"242504c1-8dfb-48cb-854a-b6e125a73f1a","block_type":"box","text":"Jay M. Fife","page_number":29,"box":{"x":69,"y":127,"width":63,"height":10}},{"id":"9ec648bd-823b-4f31-a2ec-45e5d37b2110","block_type":"box","text":"1970","page_number":29,"box":{"x":69,"y":143,"width":33,"height":8}},{"id":"59873059-74a1-4aad-b09b-a6fcf4d1154b","block_type":"box","text":"Treasurer","page_number":29,"box":{"x":293,"y":127,"width":58,"height":8}},{"id":"a6e850ff-545b-489d-951d-24b857bcf120","block_type":"box","text":"(Since 2007)","page_number":29,"box":{"x":294,"y":139,"width":78,"height":10}},{"id":"ed64c7c8-d4b6-4465-90e3-de50f3e5b416","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2007.","page_number":29,"box":{"x":480,"y":127,"width":297,"height":10}},{"id":"602a95ed-ff11-4eeb-84db-6ff133d5794e","block_type":"box","text":"Aaron Wasserman","page_number":29,"box":{"x":68,"y":160,"width":110,"height":8}},{"id":"ae59c11f-e5b2-4d46-8af5-5f7e18cf7a5e","block_type":"box","text":"1974","page_number":29,"box":{"x":69,"y":176,"width":33,"height":8}},{"id":"4a46b2bc-a570-4fe7-a917-64ff1c9ddb12","block_type":"box","text":"Chief Compliance Officer","page_number":29,"box":{"x":294,"y":160,"width":149,"height":10}},{"id":"1c7bde1f-4aae-4218-b912-5ae4f2d95df4","block_type":"box","text":"(Since 2023)","page_number":29,"box":{"x":294,"y":172,"width":78,"height":10}},{"id":"7b6e55f9-9c25-47a3-863f-68476ed15c96","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2018; Chief Compliance","page_number":29,"box":{"x":480,"y":160,"width":408,"height":10}},{"id":"d70b3499-208d-481b-8deb-861c88b58b67","block_type":"box","text":"Officer of the BlackRock-advised funds in the BlackRock Multi-Asset","page_number":29,"box":{"x":480,"y":172,"width":407,"height":8}},{"id":"30af549e-2324-4175-a7fc-9b52c95311b9","block_type":"box","text":"Complex, the BlackRock Fixed-Income Complex and the iShares","page_number":29,"box":{"x":480,"y":184,"width":383,"height":10}},{"id":"42de4a6e-54f6-41eb-a6a3-8f23a2a973ea","block_type":"box","text":"Complex since 2023; Deputy Chief Compliance Officer for the","page_number":29,"box":{"x":480,"y":196,"width":371,"height":10}},{"id":"08a62c41-cc7c-4cf3-9cdf-f6c1e10c2e04","block_type":"box","text":"BlackRock-advised funds in the BlackRock Multi-Asset Complex, the","page_number":29,"box":{"x":480,"y":208,"width":407,"height":10}},{"id":"f88343bc-3474-4e0d-a45e-fd9e5f1973a4","block_type":"box","text":"BlackRock Fixed-Income Complex and the iShares Complex from 2014","page_number":29,"box":{"x":480,"y":220,"width":425,"height":10}},{"id":"00b40bd3-2b5c-4b91-84eb-9cde224fb56a","block_type":"box","text":"to 2023.","page_number":29,"box":{"x":479,"y":232,"width":53,"height":8}},{"id":"56c7cd0a-6304-47e3-84c4-a69539efc7d3","block_type":"box","text":"Lisa Belle","page_number":29,"box":{"x":69,"y":250,"width":58,"height":8}},{"id":"3bcd6f50-8071-457a-bded-edfb029134e4","block_type":"box","text":"1968","page_number":29,"box":{"x":69,"y":265,"width":33,"height":8}},{"id":"478ac3b4-41c5-4c60-9d9a-47c117f1212a","block_type":"box","text":"Anti-Money Laundering","page_number":29,"box":{"x":293,"y":250,"width":136,"height":10}},{"id":"e286d5a0-0c4b-423d-8f2c-80bf9b5083b2","block_type":"box","text":"Compliance Officer","page_number":29,"box":{"x":294,"y":262,"width":114,"height":9}},{"id":"b03479ae-728d-487c-b750-e43e3ad3946f","block_type":"box","text":"(Since 2019)","page_number":29,"box":{"x":294,"y":274,"width":78,"height":9}},{"id":"bb6ef2d9-6cf1-4714-9841-2feb5398a96a","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019; Global Financial","page_number":29,"box":{"x":480,"y":250,"width":396,"height":10}},{"id":"41834b90-4310-4916-8889-37fcb7556b3d","block_type":"box","text":"Crime Head for Asset and Wealth Management of JP Morgan from","page_number":29,"box":{"x":480,"y":262,"width":397,"height":10}},{"id":"10cc96ad-187e-40b1-b183-edb89b84f296","block_type":"box","text":"2013 to 2019.","page_number":29,"box":{"x":480,"y":274,"width":89,"height":8}},{"id":"cec91b33-bf7e-4560-a9aa-ec7919ff2f1f","block_type":"box","text":"Janey Ahn","page_number":29,"box":{"x":69,"y":291,"width":59,"height":10}},{"id":"c5c38cdc-2d5e-4b3f-a5e2-4e25c8c2355d","block_type":"box","text":"1975","page_number":29,"box":{"x":69,"y":307,"width":33,"height":8}},{"id":"95c86e87-9955-49a4-a0aa-cd73bf435d65","block_type":"box","text":"Secretary","page_number":29,"box":{"x":294,"y":291,"width":58,"height":10}},{"id":"b87992f4-c305-4900-8c35-ebb4906258ca","block_type":"box","text":"(Since 2019)","page_number":29,"box":{"x":294,"y":303,"width":78,"height":10}},{"id":"44b69ded-940e-4502-a626-fb2a38ec737d","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2018.","page_number":29,"box":{"x":480,"y":291,"width":297,"height":10}},{"id":"02eff32e-5560-4001-a951-863d3d6cb831","block_type":"box","text":"1","page_number":29,"box":{"x":69,"y":331,"width":3,"height":3}},{"id":"298398b3-81ac-4726-8cb3-b7b5a0329bc9","block_type":"box","text":"The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001.","page_number":29,"box":{"x":93,"y":330,"width":559,"height":9}},{"id":"fa47047f-00ad-4f19-8d84-7a5ae22a275f","block_type":"box","text":"2","page_number":29,"box":{"x":69,"y":343,"width":3,"height":4}},{"id":"2c5f301c-a64f-4267-b211-a61323375609","block_type":"box","text":"Officers of the Fund serve at the pleasure of the Board.","page_number":29,"box":{"x":93,"y":343,"width":317,"height":9}},{"id":"4079bcd5-a0ef-4f1c-b0fc-98a6653a8f6c","block_type":"box","text":"Share Ownership","page_number":29,"box":{"x":68,"y":372,"width":123,"height":11}},{"id":"356b3f2d-3a40-4509-b386-23137a991a72","block_type":"box","text":"Information relating to each Director’s share ownership in the Fund and in all BlackRock-advised Funds that are","page_number":29,"box":{"x":102,"y":394,"width":793,"height":12}},{"id":"9fd930ef-9afd-4ff9-97c0-830cd7ec21b9","block_type":"box","text":"currently overseen by the respective Director (“Supervised Funds”) as of December 31, 2025 is set for th in the char t","page_number":29,"box":{"x":69,"y":409,"width":838,"height":12}},{"id":"bbeed845-7a2b-44c1-b78a-b95e3e5718e2","block_type":"box","text":"below. Amounts shown may include shares as to which a Director has indirect beneficial ownership, such as through","page_number":29,"box":{"x":69,"y":424,"width":829,"height":12}},{"id":"c6ea6ed9-0793-43fa-bef1-f2b0500449fd","block_type":"box","text":"par ticipation in cer tain family accounts, 529 college savings plan interests, or similar arrangements where the","page_number":29,"box":{"x":70,"y":440,"width":787,"height":11}},{"id":"fd29c300-ecf9-4adf-9847-4b650756f70a","block_type":"box","text":"Director has beneficial economic interest but not a direct ownership interest.","page_number":29,"box":{"x":70,"y":455,"width":545,"height":11}},{"id":"603f9d39-15af-4775-8d96-6dd5545763d3","block_type":"box","text":"Name","page_number":29,"box":{"x":69,"y":503,"width":32,"height":7}},{"id":"48a4360f-68bf-4c94-bf92-16cf06c5027e","block_type":"box","text":"Dollar Range","page_number":29,"box":{"x":647,"y":483,"width":74,"height":9}},{"id":"9c630362-8959-4264-aad5-766c44bdba7d","block_type":"box","text":"of Equity Securities","page_number":29,"box":{"x":627,"y":493,"width":113,"height":9}},{"id":"99aab523-913a-48ea-b70c-ad6eb4898913","block_type":"box","text":"in the Fund","page_number":29,"box":{"x":652,"y":503,"width":64,"height":7}},{"id":"cd93f77c-90f0-4b13-99d1-2c2fa8afb869","block_type":"box","text":"Aggregate Dollar Range","page_number":29,"box":{"x":770,"y":483,"width":139,"height":9}},{"id":"32b9d492-df36-45cb-95cd-69db49ef2066","block_type":"box","text":"of Equity Securities","page_number":29,"box":{"x":783,"y":493,"width":113,"height":9}},{"id":"0756adf0-464f-4930-8712-305285a62af0","block_type":"box","text":"in Supervised Funds*","page_number":29,"box":{"x":778,"y":503,"width":123,"height":9}},{"id":"38438fc4-c132-4568-a2df-b506d085751c","block_type":"box","text":"Independent Directors","page_number":29,"box":{"x":70,"y":521,"width":156,"height":11}},{"id":"233bac82-bd42-422a-9528-8606caa6683c","block_type":"box","text":"Cynthia L. Egan","page_number":29,"box":{"x":79,"y":536,"width":108,"height":11}},{"id":"95067720-652b-45f7-9c9a-dc7f58854391","block_type":"box","text":"..................................................","page_number":29,"box":{"x":195,"y":543,"width":401,"height":2}},{"id":"e5c7490a-0c13-4ac4-81d2-e563f830474f","block_type":"box","text":"None Over $100,000","page_number":29,"box":{"x":666,"y":535,"width":228,"height":11}},{"id":"bb9ff80a-bf0a-498c-afd2-fd51afbc1e71","block_type":"box","text":"Lorenzo A. Flores. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":29,"box":{"x":79,"y":551,"width":517,"height":9}},{"id":"d2aa039a-c057-4c8d-846b-4b7e2b82bcab","block_type":"box","text":"None Over $100,000","page_number":29,"box":{"x":666,"y":550,"width":228,"height":12}},{"id":"ff901821-be6c-4417-9ddd-e2e944ee14f7","block_type":"box","text":"Stayce D. Harris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1 -","page_number":29,"box":{"x":79,"y":566,"width":584,"height":11}},{"id":"43f87045-7129-477e-a7d1-98f6235c11ef","block_type":"box","text":"$10,000 Over $100,000","page_number":29,"box":{"x":669,"y":566,"width":225,"height":11}},{"id":"bdce3b2e-a615-4fba-b1f3-de2f67f4a83d","block_type":"box","text":"J. Phillip Holloman. .","page_number":29,"box":{"x":78,"y":582,"width":143,"height":10}},{"id":"debc5493-5fc1-4315-b5ed-8483bcd458d7","block_type":"box","text":"..............................................","page_number":29,"box":{"x":227,"y":589,"width":369,"height":1}},{"id":"57fd2f9c-4bb4-4a19-84dd-73032c091950","block_type":"box","text":"None Over $100,000","page_number":29,"box":{"x":666,"y":581,"width":228,"height":11}},{"id":"fe06b682-a4b0-41d9-bb95-5dec6fe4d4e7","block_type":"box","text":"R. Glenn Hubbard . .","page_number":29,"box":{"x":79,"y":597,"width":142,"height":8}},{"id":"56b95fa7-962f-4f9c-883c-41b0fdb2dae4","block_type":"box","text":"..............................................","page_number":29,"box":{"x":227,"y":604,"width":369,"height":1}},{"id":"6c66cac3-790b-43e7-a5af-dfcf5b70e81e","block_type":"box","text":"None Over $100,000","page_number":29,"box":{"x":666,"y":596,"width":228,"height":11}},{"id":"ade9b5da-80c1-4536-aa08-1a75c4f85f94","block_type":"box","text":"W. Carl Kester . . .","page_number":29,"box":{"x":78,"y":612,"width":127,"height":9}},{"id":"0b561916-6bb8-49ec-b2ec-c55c27a8e0d2","block_type":"box","text":"................................................","page_number":29,"box":{"x":211,"y":619,"width":385,"height":1}},{"id":"d6731a9b-d3c0-478d-8cfd-038789431c3d","block_type":"box","text":"None Over $100,000","page_number":29,"box":{"x":666,"y":611,"width":228,"height":11}},{"id":"54411b2f-0510-4f51-a161-901e9ff5aa78","block_type":"box","text":"Ar thur P. Steinmetz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":29,"box":{"x":78,"y":627,"width":518,"height":9}},{"id":"1e66e729-55d7-4b03-b6b4-f2faa67d0658","block_type":"box","text":"None Over $100,000","page_number":29,"box":{"x":666,"y":626,"width":228,"height":11}},{"id":"0a5d3b31-6b40-46db-8cd2-f21ec7b0cf58","block_type":"box","text":"Interested Directors","page_number":29,"box":{"x":70,"y":642,"width":140,"height":9}},{"id":"688d1db8-791e-45a6-a73a-d3f5dfa87880","block_type":"box","text":"Rober t Fairbairn","page_number":29,"box":{"x":79,"y":657,"width":113,"height":9}},{"id":"8864c807-d4b5-4f37-a93e-816adab7fceb","block_type":"box","text":"..................................................","page_number":29,"box":{"x":195,"y":664,"width":401,"height":2}},{"id":"567d9608-5c30-476a-9e58-66065f1046f1","block_type":"box","text":"None Over $100,000","page_number":29,"box":{"x":666,"y":656,"width":228,"height":11}},{"id":"85897dc4-1aea-4de8-9e51-ad6fbfcea9dc","block_type":"box","text":"John M. Perlowski","page_number":29,"box":{"x":78,"y":672,"width":127,"height":9}},{"id":"8acd38c2-4643-4742-a08e-0024474e315c","block_type":"box","text":"................................................","page_number":29,"box":{"x":211,"y":679,"width":385,"height":2}},{"id":"d4f418f5-96d7-4f9d-9516-0d759555d47e","block_type":"box","text":"None Over $100,000","page_number":29,"box":{"x":666,"y":671,"width":228,"height":12}},{"id":"ab37c199-0378-4241-8110-36f32c93ed49","block_type":"box","text":"* Includes share equivalents owned under the deferred compensation plan in the Supervised Funds by cer tain Independent Directors who have","page_number":29,"box":{"x":70,"y":696,"width":817,"height":9}},{"id":"2e03fb0d-5150-40f0-a195-4ed651ce7761","block_type":"box","text":"par ticipated in the deferred compensation plan of the Supervised Funds.","page_number":29,"box":{"x":69,"y":707,"width":414,"height":8}},{"id":"3a5b1dc6-473d-4ac0-81e8-385b787ccc75","block_type":"box","text":"As of April 2, 2026, the Directors and officers of the Fund as a group directly or indirectly beneficially owned an","page_number":29,"box":{"x":101,"y":727,"width":793,"height":12}},{"id":"a5cfa1ad-45c0-4523-9e12-bd5641dad87e","block_type":"box","text":"aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025, none of the","page_number":29,"box":{"x":69,"y":743,"width":837,"height":11}},{"id":"48b56d2f-c278-4d0d-b519-85bb58a227e1","block_type":"box","text":"Independent Directors of the Fund or their immediate family members owned beneficially or of record any securities","page_number":29,"box":{"x":70,"y":758,"width":821,"height":11}},{"id":"2d0b88a5-7f95-414b-b3be-aea887180d0d","block_type":"box","text":"of the Fund’s investment adviser, sub-adviser, principal underwriter, or any person directly or indirectly controlling,","page_number":29,"box":{"x":69,"y":773,"width":809,"height":11}},{"id":"a2ddab78-d527-42bb-8505-1889f6a2553f","block_type":"box","text":"controlled by, or under common control with such entities.","page_number":29,"box":{"x":69,"y":788,"width":412,"height":11}},{"id":"ab21c2df-4a6d-4a40-903a-82681c772e90","block_type":"box","text":"Compensation of Directors","page_number":29,"box":{"x":69,"y":818,"width":194,"height":11}},{"id":"35a1cc34-228d-4ede-92e1-2944710c4fe7","block_type":"box","text":"Each Independent Director is paid an annual retainer of $370,000 per year for his or her services as a Board","page_number":29,"box":{"x":102,"y":840,"width":778,"height":12}},{"id":"2b3cd0f9-ad93-4ecf-ae40-d43bae81fe8e","block_type":"box","text":"member of the BlackRock-advised Funds, including the Fund, together with out-of-pocket expenses in accordance with","page_number":29,"box":{"x":69,"y":856,"width":836,"height":11}},{"id":"8c5ff2d4-21ba-4a66-bebe-0f142ceb340a","block_type":"box","text":"a Board policy on travel and other business expenses relating to attendance at meetings. In addition, the Chair of the","page_number":29,"box":{"x":69,"y":871,"width":838,"height":11}},{"id":"944b6b92-5ea1-4177-a375-33e94d76ba4a","block_type":"box","text":"Board and the Vice Chair of the Board are paid an additional annual retainer of $140,000 and $84,000, respectively.","page_number":29,"box":{"x":70,"y":886,"width":835,"height":11}},{"id":"0be0afbd-7f31-46df-a42c-bc5efcb8e026","block_type":"box","text":"The Chairs of the Audit Committee, Per formance Oversight Committee, Compliance Committee, Governance and","page_number":29,"box":{"x":68,"y":901,"width":801,"height":12}},{"id":"31e5a2ca-9aee-48c3-863e-fa00f564186b","block_type":"box","text":"I-18","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"22ba62b7-6d25-4f4b-9f26-50e95a878020","block_type":"box","text":"NM1026U-5982643-29/241","page_number":29,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"6e401bd7-9888-4f0b-ae39-49bfd6c242c4","block_type":"box","text":"Nominating Committee, and Securities Lending Committee are paid an additional annual retainer of $55,000,","page_number":30,"box":{"x":70,"y":44,"width":780,"height":12}},{"id":"64b4ea7c-593c-48e5-9071-323be19ff385","block_type":"box","text":"$42,500, $50,000, $42,500 and $20,000, respectively. Each of the other members of the Audit Committee,","page_number":30,"box":{"x":69,"y":59,"width":779,"height":12}},{"id":"52ad3c05-4249-47da-a0a5-0b5e7f006ba1","block_type":"box","text":"Compliance Committee, Governance and Nominating Committee, and Securities Lending Committee are paid an","page_number":30,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"96340f7f-aaae-46e2-a6b6-23cfe2601fa6","block_type":"box","text":"additional annual retainer of $30,000, $25,000, $25,000 and $15,000, respectively, for his or her service on such","page_number":30,"box":{"x":69,"y":89,"width":826,"height":12}},{"id":"f45de16b-5c52-4cc6-b3ec-0c6d32d37d9d","block_type":"box","text":"committee. An Independent Director may receive additional compensation for his or her service as a member or","page_number":30,"box":{"x":69,"y":105,"width":797,"height":11}},{"id":"a7abee39-a69f-4c16-8be9-ea291a62d5cb","block_type":"box","text":"Chair, as applicable, of one or more ad hoc committees of the Board. The Fund will pay a pro rata por tion quar terly","page_number":30,"box":{"x":69,"y":120,"width":819,"height":11}},{"id":"949c8958-5499-4bad-94b5-d27f36b4dde6","block_type":"box","text":"(based on relative net assets) of the foregoing Trustee fees paid by the funds in the BlackRock Fixed-Income","page_number":30,"box":{"x":69,"y":135,"width":772,"height":12}},{"id":"17292601-3f71-4a53-986e-3660b40a8095","block_type":"box","text":"Complex.","page_number":30,"box":{"x":69,"y":151,"width":64,"height":10}},{"id":"6d94322e-01aa-4417-ae82-b781133e75ca","block_type":"box","text":"The Independent Directors have agreed that a maximum of 50% of each Independent Director’s total","page_number":30,"box":{"x":101,"y":173,"width":717,"height":11}},{"id":"447c4e21-cf9d-408c-b4e2-12caf2f60cf2","block_type":"box","text":"compensation paid by funds in the BlackRock Fixed-Income Complex may be deferred pursuant to the BlackRock","page_number":30,"box":{"x":69,"y":188,"width":801,"height":11}},{"id":"ac1075cd-888b-43e4-9ecd-98909306db53","block_type":"box","text":"Fixed-Income Complex’s deferred compensation plan. Under the deferred compensation plan, deferred amounts earn","page_number":30,"box":{"x":70,"y":203,"width":833,"height":11}},{"id":"fabcd345-f5d6-48d9-a518-3604dc633fc9","block_type":"box","text":"a return for the Independent Directors as though equivalent dollar amounts had been invested in shares of cer tain","page_number":30,"box":{"x":69,"y":218,"width":815,"height":12}},{"id":"d2e4de25-b57f-486c-87ce-efd19e73457c","block_type":"box","text":"funds in the BlackRock Fixed-Income Complex selected by the Independent Directors. This has approximately the","page_number":30,"box":{"x":68,"y":234,"width":804,"height":11}},{"id":"9714663f-1d7d-4f16-8fdc-debdee56bcc5","block_type":"box","text":"same economic effect for the Independent Directors as if they had invested the deferred amounts in such funds in","page_number":30,"box":{"x":69,"y":249,"width":817,"height":11}},{"id":"3cf6aac7-6129-4a1e-b6e3-92d2e1c1acac","block_type":"box","text":"the BlackRock Fixed-Income Complex. The deferred compensation plan is not funded and obligations thereunder","page_number":30,"box":{"x":68,"y":264,"width":800,"height":11}},{"id":"3970dd2a-4e8e-4c66-b63b-1697a3f911b2","block_type":"box","text":"represent general unsecured claims against the general assets of a fund and are recorded as a liability for","page_number":30,"box":{"x":69,"y":279,"width":760,"height":11}},{"id":"baf20a30-75fc-45db-a320-8bff32e07b9b","block_type":"box","text":"accounting purposes.","page_number":30,"box":{"x":69,"y":294,"width":151,"height":11}},{"id":"ce7f2f4c-d1cc-4272-ad71-572663c5173a","block_type":"box","text":"The following table sets for th the compensation paid to the Directors by the Fund for the fiscal year ended","page_number":30,"box":{"x":101,"y":317,"width":756,"height":11}},{"id":"8676ca8e-f517-4ce6-869d-01c47312efc7","block_type":"box","text":"December 31, 2025 and the aggregate compensation, including deferred compensation amounts, paid to them by all","page_number":30,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"6431acbe-0e3c-4331-9e46-946bc47e7290","block_type":"box","text":"BlackRock-advised Funds for the calendar year ended December 31, 2025.","page_number":30,"box":{"x":70,"y":347,"width":533,"height":11}},{"id":"af81c64b-f0d5-4cb6-9acb-a7ce2de12df2","block_type":"box","text":"Name","page_number":30,"box":{"x":69,"y":406,"width":32,"height":7}},{"id":"8cb130c0-0b44-4a53-9afa-3efeda7a9c0e","block_type":"box","text":"1","page_number":30,"box":{"x":102,"y":406,"width":4,"height":3}},{"id":"816d6cad-4426-4cb9-8902-d64ec403d7af","block_type":"box","text":"Compensation","page_number":30,"box":{"x":516,"y":395,"width":83,"height":9}},{"id":"d27e0e9e-f524-456a-8f80-fdb7d7899d4a","block_type":"box","text":"from the Fund","page_number":30,"box":{"x":517,"y":406,"width":81,"height":7}},{"id":"06ac80c5-c440-4a0c-a0db-d1d1b39f7775","block_type":"box","text":"Estimated Annual","page_number":30,"box":{"x":630,"y":385,"width":101,"height":8}},{"id":"5c181e91-03b1-4b6f-a152-26164e33b778","block_type":"box","text":"Benefits upon","page_number":30,"box":{"x":641,"y":395,"width":79,"height":9}},{"id":"59493775-093b-4af5-8adc-4a2f9f6289b6","block_type":"box","text":"Retirement","page_number":30,"box":{"x":648,"y":406,"width":65,"height":7}},{"id":"24e27ada-95b9-4e5a-ac42-f6ff3a8d5fe7","block_type":"box","text":"Aggregate Compensation","page_number":30,"box":{"x":761,"y":375,"width":148,"height":9}},{"id":"09aea2d8-9df4-4eb2-8d90-31598c64b827","block_type":"box","text":"from the Fund and","page_number":30,"box":{"x":782,"y":385,"width":106,"height":8}},{"id":"b0f358de-0d7f-476d-87e3-d812645ca1e0","block_type":"box","text":"Other BlackRock","page_number":30,"box":{"x":785,"y":395,"width":102,"height":8}},{"id":"b7d2ec29-5031-481a-8f42-b7c1d3164662","block_type":"box","text":"Advised Funds","page_number":30,"box":{"x":788,"y":406,"width":84,"height":7}},{"id":"cd3c7527-445e-459e-a423-9933b1ce782d","block_type":"box","text":"2,3","page_number":30,"box":{"x":873,"y":406,"width":9,"height":4}},{"id":"35d999f5-b8ae-428f-85a9-cbbe489d4e98","block_type":"box","text":"Independent Directors","page_number":30,"box":{"x":70,"y":423,"width":156,"height":11}},{"id":"bc00de18-822b-407a-b2ac-31d6ca278819","block_type":"box","text":"Cynthia L. Egan","page_number":30,"box":{"x":79,"y":438,"width":108,"height":12}},{"id":"a1371c7b-ca4b-47ac-80b9-e05ec1b2418b","block_type":"box","text":"4","page_number":30,"box":{"x":189,"y":439,"width":4,"height":4}},{"id":"36f2cc91-e60e-4dc1-b6c9-60baeb2e5c52","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,488","page_number":30,"box":{"x":198,"y":438,"width":386,"height":11}},{"id":"78e0d257-fee1-44c9-8069-1ef2274e606c","block_type":"box","text":"None $580,000","page_number":30,"box":{"x":663,"y":438,"width":208,"height":11}},{"id":"2f6eae00-307d-441e-8ba4-90c143d7194b","block_type":"box","text":"Lorenzo A. Flores","page_number":30,"box":{"x":79,"y":454,"width":121,"height":8}},{"id":"b38809b7-6e4c-4182-8652-4a5b5fcdd435","block_type":"box","text":"5","page_number":30,"box":{"x":201,"y":454,"width":4,"height":4}},{"id":"527c963f-d5f2-4c80-a327-264b65182425","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,218","page_number":30,"box":{"x":214,"y":453,"width":370,"height":11}},{"id":"e85f584d-3be8-4247-bf30-ed4f87492124","block_type":"box","text":"None $400,000","page_number":30,"box":{"x":663,"y":453,"width":208,"height":11}},{"id":"c47940ca-0ef0-4de4-a299-5bcb2a3cf3f3","block_type":"box","text":"Stayce D. Harris . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,205","page_number":30,"box":{"x":79,"y":468,"width":505,"height":12}},{"id":"6c2b15bd-dfb1-4a88-8001-1fe6c7bd2b4e","block_type":"box","text":"None $395,000","page_number":30,"box":{"x":663,"y":468,"width":208,"height":11}},{"id":"fc1e2248-6d25-4339-8829-419ec8e002bc","block_type":"box","text":"J. Phillip Holloman","page_number":30,"box":{"x":78,"y":484,"width":130,"height":11}},{"id":"90f89e11-4fea-47dd-af80-4ad357da3973","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,286","page_number":30,"box":{"x":214,"y":483,"width":370,"height":11}},{"id":"f6824835-f48d-48f3-b31c-e3c997de2d32","block_type":"box","text":"None $425,000","page_number":30,"box":{"x":663,"y":483,"width":208,"height":11}},{"id":"bf731c13-26aa-43fa-b0ae-d1d07c1dd456","block_type":"box","text":"R. Glenn Hubbard","page_number":30,"box":{"x":79,"y":499,"width":124,"height":9}},{"id":"ce4eeeb9-e2b5-4419-a768-c98ce78a201d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,650","page_number":30,"box":{"x":206,"y":498,"width":378,"height":11}},{"id":"58321c8b-890b-4124-93d3-ef85fc72e2f4","block_type":"box","text":"None $560,000","page_number":30,"box":{"x":663,"y":498,"width":208,"height":11}},{"id":"454bc31c-3448-42cd-a3d3-aeec54540790","block_type":"box","text":"W. Carl Kester","page_number":30,"box":{"x":78,"y":514,"width":102,"height":9}},{"id":"0f33aee1-a7b9-4ddf-8c8b-958536ec9ab7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,694","page_number":30,"box":{"x":182,"y":513,"width":402,"height":11}},{"id":"90af98fd-5107-4e6a-8e27-ab5eee3e19cf","block_type":"box","text":"None $671,500","page_number":30,"box":{"x":663,"y":513,"width":208,"height":11}},{"id":"ccf4977a-e085-4d61-ac33-4f87c839acea","block_type":"box","text":"Catherine A. Lynch","page_number":30,"box":{"x":79,"y":529,"width":131,"height":11}},{"id":"3c87d25d-0baf-42ff-8564-cc38344dad0a","block_type":"box","text":"6","page_number":30,"box":{"x":211,"y":529,"width":5,"height":5}},{"id":"b448373a-4756-42fd-bc9e-69288dc6957f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,538","page_number":30,"box":{"x":223,"y":528,"width":361,"height":12}},{"id":"98a0a0b7-aad6-41de-af21-c06f78d19440","block_type":"box","text":"None $610,000","page_number":30,"box":{"x":663,"y":528,"width":208,"height":12}},{"id":"17f804c2-81f0-4be6-8596-0efbe72ea9c6","block_type":"box","text":"Ar thur P. Steinmetz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,373","page_number":30,"box":{"x":78,"y":544,"width":506,"height":11}},{"id":"ce8aa96f-232a-49aa-92a1-4afa8868c3e6","block_type":"box","text":"None $537,500","page_number":30,"box":{"x":663,"y":544,"width":208,"height":11}},{"id":"48ad595d-c068-41d5-b6b8-0f65f10bdd0b","block_type":"box","text":"Interested Directors","page_number":30,"box":{"x":70,"y":560,"width":140,"height":8}},{"id":"4b619654-3d03-431c-800a-e707f2dc6626","block_type":"box","text":"Rober t Fairbairn . . .","page_number":30,"box":{"x":79,"y":575,"width":137,"height":8}},{"id":"ee6e2c19-f94b-4c8c-8fbe-dc3d0ec8bf24","block_type":"box","text":".................................","page_number":30,"box":{"x":223,"y":582,"width":262,"height":1}},{"id":"28901ff3-5a00-4fd8-9f97-b94ebcf9cf21","block_type":"box","text":"None None None","page_number":30,"box":{"x":541,"y":575,"width":312,"height":8}},{"id":"3a501294-c9b1-4bc0-b601-f9ac963c932e","block_type":"box","text":"John M. Perlowski . .","page_number":30,"box":{"x":78,"y":590,"width":146,"height":9}},{"id":"2bc41a60-eea8-491d-8fce-c690499fa72a","block_type":"box","text":"................................","page_number":30,"box":{"x":231,"y":597,"width":254,"height":1}},{"id":"274c7116-ced0-4423-88dd-f19f4a43701f","block_type":"box","text":"None None None","page_number":30,"box":{"x":541,"y":590,"width":312,"height":9}},{"id":"ea43187d-c0c4-4337-8104-b0f5b53ee96b","block_type":"box","text":"1","page_number":30,"box":{"x":69,"y":629,"width":3,"height":4}},{"id":"d77ef3a4-70c3-4bcc-a1ad-5fa2a2f20383","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation see the Biographical Information Char t beginning","page_number":30,"box":{"x":94,"y":629,"width":813,"height":9}},{"id":"8cecb9fb-60a8-4182-914c-683eb7e8740a","block_type":"box","text":"on page I-15.","page_number":30,"box":{"x":93,"y":639,"width":74,"height":9}},{"id":"c1db4399-23d4-467b-900c-484b357e90a8","block_type":"box","text":"2","page_number":30,"box":{"x":69,"y":652,"width":3,"height":3}},{"id":"1dd68f42-40f5-49e9-b534-401d01c0e957","block_type":"box","text":"For the Independent Directors, this amount represents the aggregate compensation earned from the funds in the BlackRock Fixed-Income","page_number":30,"box":{"x":94,"y":652,"width":784,"height":9}},{"id":"2d615e4b-5019-4336-957e-6af136cad75a","block_type":"box","text":"Complex during the calendar year ended December 31, 2025. Of this amount, Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard, Dr. Kester,","page_number":30,"box":{"x":93,"y":662,"width":801,"height":9}},{"id":"6505bb7d-0456-471c-adb2-0a788cbe4c6f","block_type":"box","text":"Ms. Lynch and Mr. Steinmetz deferred $200,000, $197,500, $212,500, $280,000, $546,859, $603,900 and $268,750, respectively,","page_number":30,"box":{"x":94,"y":671,"width":776,"height":10}},{"id":"fd783540-cdd9-496c-948d-0cc9ec380d6d","block_type":"box","text":"pursuant to the BlackRock Fixed-Income Complex’s deferred compensation plan.","page_number":30,"box":{"x":94,"y":682,"width":457,"height":9}},{"id":"28abdc77-c626-41d3-8fce-f235a86d5c9d","block_type":"box","text":"3","page_number":30,"box":{"x":69,"y":695,"width":3,"height":3}},{"id":"07166991-46cd-45d8-bb5b-6f0d93f8a52b","block_type":"box","text":"Total amount of deferred compensation payable by the BlackRock Fixed-Income Complex to Mr. Flores, Ms. Harris, Mr. Holloman, Dr. Hubbard,","page_number":30,"box":{"x":93,"y":695,"width":810,"height":9}},{"id":"83ee418c-bbe8-4580-b6ab-65ab696b40ab","block_type":"box","text":"Dr. Kester, Ms. Lynch and Mr. Steinmetz is $1,055,218, $1,032,387, $1,101,752, $5,907,215, $2,544,830, $720,927 and $603,379,","page_number":30,"box":{"x":94,"y":704,"width":787,"height":10}},{"id":"41ee1651-21d1-408c-8185-7d5b31c91fec","block_type":"box","text":"respectively, as of December 31, 2025. Ms. Egan did not par ticipate in the deferred compensation plan as of December 31, 2025.","page_number":30,"box":{"x":94,"y":715,"width":748,"height":9}},{"id":"95489ac6-a3ca-4a0e-874a-7dc44da8cff3","block_type":"box","text":"4","page_number":30,"box":{"x":68,"y":728,"width":4,"height":3}},{"id":"fdc20658-f448-4573-8a2f-9e8f44b3873d","block_type":"box","text":"Ms. Egan became Chair of the Securities Lending Committee, effective March 9, 2026.","page_number":30,"box":{"x":94,"y":727,"width":496,"height":9}},{"id":"4766cf87-19e8-4c5f-a77e-4595b500ab76","block_type":"box","text":"5","page_number":30,"box":{"x":69,"y":740,"width":3,"height":4}},{"id":"23370166-ceca-4e5f-8a69-62114b075232","block_type":"box","text":"Mr. Flores became Chair of the Audit Committee, effective March 9, 2026.","page_number":30,"box":{"x":94,"y":740,"width":423,"height":8}},{"id":"ea22ec70-12a5-47e1-81dd-96384307adda","block_type":"box","text":"6","page_number":30,"box":{"x":69,"y":753,"width":3,"height":3}},{"id":"df28515b-bd79-437b-97ac-2f2bfe7cd318","block_type":"box","text":"Ms. Lynch resigned as director of the Fund, effective as of March 9, 2026.","page_number":30,"box":{"x":94,"y":753,"width":425,"height":9}},{"id":"fccda214-d84e-4db1-a234-f444d905201b","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":30,"box":{"x":69,"y":781,"width":432,"height":11}},{"id":"f70e8433-04e2-450d-8f58-cc1014e9f9c9","block_type":"box","text":"The Fund has entered into an investment advisory agreement with the Manager (the “Management Agreement”),","page_number":30,"box":{"x":101,"y":804,"width":802,"height":11}},{"id":"c982d842-ca97-48dc-b05b-4a95ef921a87","block_type":"box","text":"pursuant to which the Manager receives as compensation for its services to the Fund, a fee with respect to the Fund","page_number":30,"box":{"x":70,"y":819,"width":831,"height":11}},{"id":"194594c2-6841-49f1-9345-cbd90cad2c30","block_type":"box","text":"at the end of each month.","page_number":30,"box":{"x":69,"y":834,"width":183,"height":9}},{"id":"6e4eefa0-5d23-4bb0-a3e8-5b4fe9542ca6","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":30,"box":{"x":102,"y":857,"width":800,"height":11}},{"id":"961ea1ba-c62f-4277-965d-57fea52ea327","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":30,"box":{"x":70,"y":872,"width":834,"height":11}},{"id":"0e61ea3e-4e98-4434-9d35-b068adb7943b","block_type":"box","text":"to per form investment advisory services with respect to the Fund. In addition, the Manager may delegate cer tain of","page_number":30,"box":{"x":68,"y":887,"width":825,"height":11}},{"id":"e1a96f8b-66f1-44c2-971f-a526e88f9963","block_type":"box","text":"its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":30,"box":{"x":70,"y":902,"width":801,"height":11}},{"id":"1bb3ea14-ea6b-4e26-96be-9cf171b5b033","block_type":"box","text":"I-19","page_number":30,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"9589ded2-3e5c-48bf-a1f0-3b362173eb5b","block_type":"box","text":"NM1026U-5982643-30/241","page_number":30,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"003a4542-0ca5-4aec-a651-4538989710e0","block_type":"box","text":"permitted by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in","page_number":31,"box":{"x":70,"y":45,"width":823,"height":11}},{"id":"0fe4eaa7-2603-453b-bfe6-fb7e93b26828","block_type":"box","text":"its sole discretion at any time to the extent permitted by applicable law.","page_number":31,"box":{"x":70,"y":60,"width":508,"height":11}},{"id":"99a6d3f5-2148-427b-8e43-6bad1bbe1f3c","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":31,"box":{"x":102,"y":82,"width":762,"height":12}},{"id":"b92b79fa-cc5a-4ff9-bfe9-9d62434d4d6e","block_type":"box","text":"assets estimated to be attributable to investments in (i) other equity and fixed-income mutual funds and ETFs","page_number":31,"box":{"x":69,"y":98,"width":780,"height":11}},{"id":"dc83cdf3-a9a7-4f4f-9698-b6904686d124","block_type":"box","text":"managed by BlackRock or its affiliates that have a contractual management fee and (ii) other exchange-traded","page_number":31,"box":{"x":69,"y":113,"width":783,"height":11}},{"id":"1feeec0c-0187-40ac-a5c8-391058268b68","block_type":"box","text":"products sponsored by BlackRock or its affiliates, through June 30, 2027. BlackRock has contractually agreed to","page_number":31,"box":{"x":70,"y":128,"width":805,"height":11}},{"id":"7e84a4a0-85a3-4167-8cb3-f36bb474a107","block_type":"box","text":"waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through","page_number":31,"box":{"x":68,"y":143,"width":834,"height":11}},{"id":"03265a07-34de-46e0-a40c-22aa4dcae934","block_type":"box","text":"its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2027. The","page_number":31,"box":{"x":70,"y":158,"width":756,"height":11}},{"id":"d7141529-ef00-4581-ba18-dbf6459ed71b","block_type":"box","text":"contractual agreements may be terminated upon 90 days’ notice by a majority of the Independent Directors or by a","page_number":31,"box":{"x":69,"y":173,"width":819,"height":11}},{"id":"ff57ca21-d511-4473-a332-4cb6b5773800","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund.","page_number":31,"box":{"x":68,"y":188,"width":468,"height":12}},{"id":"06a46002-8310-4ade-8182-9b4013c9e353","block_type":"box","text":"The Manager has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":31,"box":{"x":101,"y":211,"width":792,"height":11}},{"id":"545e08c9-e675-48df-8b9c-040d258e9a09","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":31,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"54595c1e-b89d-4285-ace5-d089f3a1a2d6","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses (as defined in the","page_number":31,"box":{"x":70,"y":241,"width":811,"height":11}},{"id":"4db68815-6441-4848-b45c-25ce4fa99d06","block_type":"box","text":"Fund’s Prospectus)) as a percentage of average daily net assets to 0.78% for Investor A Shares, 1.53% for Investor C","page_number":31,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"a4cdd4e3-0881-4bc3-a9b7-a3bcb6f1e7f0","block_type":"box","text":"Shares, 0.53% for Institutional Shares and 0.48% for Class K Shares through June 30, 2027. The contractual","page_number":31,"box":{"x":69,"y":271,"width":782,"height":12}},{"id":"627115eb-1092-4f7e-9229-061fb5a758c9","block_type":"box","text":"agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors or by a vote of a","page_number":31,"box":{"x":69,"y":286,"width":793,"height":12}},{"id":"0cabcc6e-9263-430a-ad02-441fb07eaa70","block_type":"box","text":"majority of the outstanding voting securities of the Fund.","page_number":31,"box":{"x":69,"y":302,"width":400,"height":11}},{"id":"d9625772-e927-42f6-ba5d-7520b0e8541a","block_type":"box","text":"The Manager has entered into sub-advisory agreements (the “Sub-Advisory Agreements”) with BlackRock","page_number":31,"box":{"x":101,"y":324,"width":749,"height":12}},{"id":"9d0d12aa-2209-4558-8200-b50ec285a73c","block_type":"box","text":"International Limited (“BIL”) and BlackRock (Singapore) Limited (“BRS” and together with BIL, the “Sub-Advisers”)","page_number":31,"box":{"x":70,"y":340,"width":810,"height":11}},{"id":"3132a421-fd73-417f-9028-746cbffe14ff","block_type":"box","text":"pursuant to which the Sub-Advisers receive for the services for that por tion of the Fund for which the Sub-Adviser","page_number":31,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"f4af751a-cf3b-4e85-8326-e227c40841c3","block_type":"box","text":"served as sub-adviser a monthly fee at an annual rate equal to a percentage of the management fee paid to the","page_number":31,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"e3312d28-21bd-42a9-b950-1ea980b0e8b8","block_type":"box","text":"Manager under the Management Agreement.","page_number":31,"box":{"x":70,"y":385,"width":316,"height":11}},{"id":"9cd84d96-e2f8-44e6-8d43-35743a878f2a","block_type":"box","text":"In rendering investment advisory services to the Fund, the Manager uses the por tfolio management, research","page_number":31,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"c321c1e0-8f70-4f74-b9d3-0270aefbf10a","block_type":"box","text":"and other resources of BlackRock Investment Management (Australia) Limited (“BlackRock Australia”), a foreign","page_number":31,"box":{"x":69,"y":423,"width":798,"height":11}},{"id":"b9ccd853-3143-4726-89fc-268f5ff2cc86","block_type":"box","text":"affiliate of BlackRock that is not registered under the Investment Advisers Act of 1940, as amended (the “Advisers","page_number":31,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"f87f8ca6-0f47-4916-b426-b42ef8536f10","block_type":"box","text":"Act”). BlackRock Australia provides services to the Fund through a “par ticipating affiliate” arrangement, as that term","page_number":31,"box":{"x":68,"y":453,"width":834,"height":11}},{"id":"b26dd7a0-6b73-4e51-bb2a-c7717af0d9c4","block_type":"box","text":"is used in relief granted by the staff of the SEC allowing U.S. registered investment advisers to use por tfolio","page_number":31,"box":{"x":70,"y":468,"width":770,"height":11}},{"id":"5633880c-b6e6-414e-b71b-02709d924b69","block_type":"box","text":"management or research resources of advisory affiliates subject to the regulatory supervision of the registered","page_number":31,"box":{"x":69,"y":483,"width":794,"height":11}},{"id":"a276f117-80d7-4ba3-87d5-e569ac92bbfb","block_type":"box","text":"investment adviser. Under the par ticipating affiliate arrangement, BlackRock Australia is considered a par ticipating","page_number":31,"box":{"x":70,"y":498,"width":819,"height":11}},{"id":"2a10196b-3022-4da4-9bdd-90c4dc76ec92","block_type":"box","text":"affiliate of BlackRock, and BlackRock Australia and cer tain designated employees are considered “associated","page_number":31,"box":{"x":69,"y":513,"width":784,"height":12}},{"id":"258aca7f-fa05-4ef1-80c0-b32f0a0b4d18","block_type":"box","text":"persons” of BlackRock (as that term is defined in the Advisers Act) and investment professionals from BlackRock","page_number":31,"box":{"x":70,"y":528,"width":807,"height":11}},{"id":"bfc876e8-e880-4d8c-9519-79558f08021f","block_type":"box","text":"Australia may render por tfolio management, research and other services to the Fund subject to the supervision of","page_number":31,"box":{"x":68,"y":543,"width":816,"height":12}},{"id":"564d9c76-85d7-4370-a024-8756e6c5269c","block_type":"box","text":"BlackRock. The Fund pays no additional fees and expenses as a result of such arrangement.","page_number":31,"box":{"x":70,"y":559,"width":659,"height":11}},{"id":"84ff3342-84ee-474b-8e06-47629350cdc9","block_type":"box","text":"Set for th below are the total management fees paid by the Fund to the Manager (which includes amounts paid by","page_number":31,"box":{"x":102,"y":581,"width":808,"height":12}},{"id":"ee3288cb-f53d-4490-a889-2c03816051de","block_type":"box","text":"the Manager to the Sub-Advisers), and the amounts waived and/or reimbursed by the Manager, for the periods","page_number":31,"box":{"x":68,"y":596,"width":789,"height":12}},{"id":"cde7b25d-cf4a-4155-9d41-2d537dcc9821","block_type":"box","text":"indicated:","page_number":31,"box":{"x":70,"y":612,"width":67,"height":9}},{"id":"4d520677-acd2-4d51-b690-27ab15485ae9","block_type":"box","text":"Fees Paid","page_number":31,"box":{"x":582,"y":640,"width":56,"height":7}},{"id":"b7c2fbdd-2c84-4296-b99b-820542584831","block_type":"box","text":"to the Manager","page_number":31,"box":{"x":565,"y":650,"width":90,"height":9}},{"id":"9db6d08a-5c3f-4889-974e-e2f79d858749","block_type":"box","text":"Fees Waived","page_number":31,"box":{"x":696,"y":640,"width":72,"height":7}},{"id":"f93f2131-75fa-4f06-827e-849964f16f0b","block_type":"box","text":"by the Manager","page_number":31,"box":{"x":685,"y":650,"width":91,"height":9}},{"id":"071c34cf-8576-4309-b408-9199edd432a4","block_type":"box","text":"1","page_number":31,"box":{"x":776,"y":650,"width":4,"height":4}},{"id":"0be2679f-6f50-49f1-ae70-bfd217b0a8a6","block_type":"box","text":"Fees Reimbursed","page_number":31,"box":{"x":810,"y":640,"width":99,"height":7}},{"id":"310a269a-fcc4-4ed4-b6f6-7c784fbb6787","block_type":"box","text":"by the Manager","page_number":31,"box":{"x":812,"y":650,"width":91,"height":9}},{"id":"d5f5d90c-a749-46c8-bdff-201078b17fc1","block_type":"box","text":"2","page_number":31,"box":{"x":903,"y":650,"width":4,"height":4}},{"id":"24164178-7bbd-4ff1-99bc-5f7fd2f427e4","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . $4,306,681 $1,164,191 $717,704","page_number":31,"box":{"x":70,"y":667,"width":825,"height":11}},{"id":"c3ff4bdb-d4c2-4ab9-a177-170ff507dd4c","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . $3,956,273 $ 993,310 $663,224","page_number":31,"box":{"x":70,"y":682,"width":825,"height":11}},{"id":"c7df801e-ed42-44b6-9b2e-08f31517a68e","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . . $3,743,514 $1,075,594 $693,099","page_number":31,"box":{"x":70,"y":697,"width":825,"height":11}},{"id":"fbed3dba-56e6-4bf3-9efd-a4508c1febd0","block_type":"box","text":"1","page_number":31,"box":{"x":69,"y":722,"width":3,"height":4}},{"id":"c819545e-e91c-487f-af6e-d7d8bc56ae8c","block_type":"box","text":"The Manager may waive a por tion of the Fund’s management fee in connection with the Fund’s investment in an affiliated money market fund.","page_number":31,"box":{"x":93,"y":722,"width":812,"height":9}},{"id":"d65aa256-c3ec-40b4-9727-67db138933ad","block_type":"box","text":"2","page_number":31,"box":{"x":69,"y":735,"width":3,"height":4}},{"id":"02845e0f-715c-4333-bfc7-c8d83b62ebb8","block_type":"box","text":"The Manager has contractually agreed to waive and/or reimburse fees or expenses to limit Total Annual Fund Operating Expenses After Fee","page_number":31,"box":{"x":93,"y":735,"width":794,"height":9}},{"id":"b77c5962-2561-4197-824a-48195311903d","block_type":"box","text":"Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses, and cer tain","page_number":31,"box":{"x":93,"y":745,"width":784,"height":9}},{"id":"2f0e1ac9-fe77-473e-bee3-417ab65eb421","block_type":"box","text":"other Fund expenses) as a percentage of average daily net assets to 0.78% (for Investor A Shares), 1.53% (for Investor C Shares), 0.53% (for","page_number":31,"box":{"x":93,"y":755,"width":808,"height":9}},{"id":"f6fc8f24-4698-4d82-8693-23d773ad0703","block_type":"box","text":"Institutional Shares), and 0.48% (for Class K Shares) of average daily net assets through June 30, 2027. The contractual agreement may be","page_number":31,"box":{"x":94,"y":765,"width":801,"height":9}},{"id":"4f0f10c2-ab05-4949-8745-de1f9c74b3d8","block_type":"box","text":"terminated upon 90 days’ notice by a majority of the independent trustees of the Fund or by a vote of a majority of the outstanding voting","page_number":31,"box":{"x":93,"y":775,"width":784,"height":9}},{"id":"18b5a321-2c06-4d2f-abf8-9728b87cdbcf","block_type":"box","text":"securities of the Fund.","page_number":31,"box":{"x":93,"y":785,"width":126,"height":8}},{"id":"f6eda3f5-b9e8-49b5-add4-07494e7e8fa9","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":31,"box":{"x":69,"y":814,"width":335,"height":11}},{"id":"f46dbcab-8eca-416f-8f86-d57af6117309","block_type":"box","text":"Rick Rieder, Russell Brownback and Dylan Price are the Fund’s por tfolio managers and are jointly and primarily","page_number":31,"box":{"x":102,"y":836,"width":788,"height":12}},{"id":"f4ea8fc1-8cdc-4cbe-802d-cc310dfeeac6","block_type":"box","text":"responsible for the day-to-day management of the Fund’s por tfolio.","page_number":31,"box":{"x":69,"y":852,"width":474,"height":11}},{"id":"1cdbb494-f3c9-465d-9e28-b36e84873e00","block_type":"box","text":"I-20","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"33ebf6c0-7b6f-4cec-bd4e-8505961aedeb","block_type":"box","text":"NM1026U-5982643-31/241","page_number":31,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"5031b1fd-8f2f-4a2e-958d-27f3152a5f13","block_type":"box","text":"Other Funds and Accounts Managed","page_number":32,"box":{"x":70,"y":45,"width":265,"height":11}},{"id":"e37f4bbc-f721-4895-99b8-c94fbab6c1c1","block_type":"box","text":"The following table sets for th information about the funds and accounts other than the Fund for which the","page_number":32,"box":{"x":101,"y":67,"width":753,"height":12}},{"id":"598bfabb-ae07-4f1a-941b-f6829b983e82","block_type":"box","text":"por tfolio managers are primarily responsible for the day-to-day por tfolio management as of December 31, 2025.","page_number":32,"box":{"x":70,"y":82,"width":798,"height":12}},{"id":"8e0f04d1-280c-4ddc-889c-bc17f94719c2","block_type":"box","text":"Number of Other Accounts Managed","page_number":32,"box":{"x":348,"y":111,"width":211,"height":9}},{"id":"e51aa503-12ae-4764-abc0-386219620df2","block_type":"box","text":"and Assets by Account Type","page_number":32,"box":{"x":371,"y":121,"width":165,"height":9}},{"id":"4b05b68a-9247-47e1-9259-57fdea6e14f4","block_type":"box","text":"Number of Other Accounts and Assets","page_number":32,"box":{"x":648,"y":111,"width":223,"height":7}},{"id":"80a5deab-87f2-4bdf-ae66-e814ff624d7e","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":32,"box":{"x":627,"y":121,"width":265,"height":9}},{"id":"f32af3fb-e560-441f-bf4e-b586651445ad","block_type":"box","text":"Name of Portfolio Manager","page_number":32,"box":{"x":74,"y":164,"width":157,"height":8}},{"id":"252db572-c320-4b48-bad1-c68018c377ea","block_type":"box","text":"Other","page_number":32,"box":{"x":337,"y":133,"width":31,"height":8}},{"id":"9a30d00a-6aa7-4ab0-96b4-f149331870e7","block_type":"box","text":"Registered","page_number":32,"box":{"x":321,"y":144,"width":62,"height":8}},{"id":"ba41bedc-18fb-40f4-8659-889a096895c9","block_type":"box","text":"Investment","page_number":32,"box":{"x":320,"y":154,"width":65,"height":7}},{"id":"75cda4ed-51c2-41ba-aca2-46fc74ca9d94","block_type":"box","text":"Companies","page_number":32,"box":{"x":321,"y":164,"width":63,"height":8}},{"id":"60642c83-ff97-4a7c-b5d7-007293d2c236","block_type":"box","text":"Other Pooled","page_number":32,"box":{"x":420,"y":144,"width":75,"height":7}},{"id":"0977b455-60e7-47ad-b9b2-61674dd97159","block_type":"box","text":"Investment","page_number":32,"box":{"x":426,"y":154,"width":64,"height":7}},{"id":"067b9417-1dd9-4cda-acf8-287040988b1c","block_type":"box","text":"Vehicles","page_number":32,"box":{"x":433,"y":164,"width":48,"height":7}},{"id":"7ac314fc-0528-4caf-ad52-a3fbfd55a955","block_type":"box","text":"Other","page_number":32,"box":{"x":543,"y":154,"width":32,"height":7}},{"id":"b8bd1d44-2f03-4bbd-9fde-389fd85cf570","block_type":"box","text":"Accounts","page_number":32,"box":{"x":531,"y":164,"width":55,"height":7}},{"id":"8163a380-4558-4bd7-a46c-38bf1e01851d","block_type":"box","text":"Other","page_number":32,"box":{"x":636,"y":133,"width":32,"height":8}},{"id":"20537116-acc2-4a2a-8a28-fe05a47dfcfe","block_type":"box","text":"Registered","page_number":32,"box":{"x":621,"y":144,"width":62,"height":8}},{"id":"604a83a6-7082-421e-aa62-13234e8feb31","block_type":"box","text":"Investment","page_number":32,"box":{"x":620,"y":154,"width":64,"height":7}},{"id":"91d1e6d9-7004-4150-a400-f1f87daa4a22","block_type":"box","text":"Companies","page_number":32,"box":{"x":620,"y":164,"width":63,"height":8}},{"id":"57d8e84a-2a21-48d1-9b68-1b47b668e194","block_type":"box","text":"Other Pooled","page_number":32,"box":{"x":709,"y":144,"width":74,"height":7}},{"id":"a3c06071-c429-433a-a8b1-430dead5f588","block_type":"box","text":"Investment","page_number":32,"box":{"x":714,"y":154,"width":64,"height":7}},{"id":"4ab2d7c6-2d78-4d2a-abcf-ca39d3e1168f","block_type":"box","text":"Vehicles","page_number":32,"box":{"x":722,"y":164,"width":48,"height":7}},{"id":"9960e1b4-1843-42fc-a9b1-cacbb43770d8","block_type":"box","text":"Other","page_number":32,"box":{"x":838,"y":154,"width":32,"height":7}},{"id":"9cc766b9-2bfc-45fc-903e-a72078e59d62","block_type":"box","text":"Accounts","page_number":32,"box":{"x":826,"y":164,"width":55,"height":7}},{"id":"319b247e-b554-4bf8-9a54-236ff59cf3d2","block_type":"box","text":"Rick Rieder 22 27 41 0 4 1","page_number":32,"box":{"x":74,"y":178,"width":783,"height":7}},{"id":"9fbc06f6-d178-4530-8a3e-496d46fdd286","block_type":"box","text":"$121.26 Billion $50.35 Billion $5.28 Billion $0 $27.92 Million $104.87 Million","page_number":32,"box":{"x":308,"y":190,"width":591,"height":8}},{"id":"249c912d-252a-4d2b-b118-1b741b7956e8","block_type":"box","text":"Russell Brownback 13 17 28 0 0 8","page_number":32,"box":{"x":74,"y":203,"width":783,"height":7}},{"id":"43367d77-a8af-4ed1-a520-aec1fe15f075","block_type":"box","text":"$76.49 Billion $28.97 Billion $13.20 Billion $0 $0 $5.49 Billion","page_number":32,"box":{"x":312,"y":215,"width":578,"height":8}},{"id":"89baa365-6b7a-45cb-9ec3-61acd5194852","block_type":"box","text":"Dylan Price 3 6 5 0 0 1","page_number":32,"box":{"x":74,"y":228,"width":783,"height":9}},{"id":"23613966-23c5-455d-a6b5-a0803ced43ef","block_type":"box","text":"$60.30 Billion $3.70 Billion $1.79 Billion $0 $0 $301.81 Million","page_number":32,"box":{"x":312,"y":240,"width":587,"height":8}},{"id":"19404955-dafd-4216-a9f2-6991ebc7183d","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":32,"box":{"x":69,"y":275,"width":304,"height":11}},{"id":"c3cb0037-f5b2-4aaa-86ab-a0d229c19f71","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of December 31, 2025.","page_number":32,"box":{"x":101,"y":297,"width":700,"height":12}},{"id":"c71c1f98-d0a2-4e5c-901b-58958d9d527c","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":32,"box":{"x":102,"y":320,"width":774,"height":11}},{"id":"9a954edc-9962-441d-bd08-b90d18fdd9ad","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":32,"box":{"x":70,"y":335,"width":837,"height":11}},{"id":"2a2823e1-3afc-43a5-8b5a-901c4f93fc7d","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":32,"box":{"x":69,"y":350,"width":823,"height":11}},{"id":"b961ddfd-c882-4f91-a2ec-61873e6af197","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":32,"box":{"x":69,"y":365,"width":799,"height":11}},{"id":"37527cbf-4568-4611-a150-8e258b3dec33","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":32,"box":{"x":70,"y":380,"width":670,"height":12}},{"id":"76907e09-9d28-4e69-9b04-59c8b88983f6","block_type":"box","text":"Base Compensation.","page_number":32,"box":{"x":102,"y":403,"width":148,"height":11}},{"id":"cdd43f9d-e386-4879-b670-f2455a38b7d7","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":32,"box":{"x":257,"y":403,"width":640,"height":11}},{"id":"d12b1860-4c2f-4dc0-bd1d-4f8838ddb320","block_type":"box","text":"firm.","page_number":32,"box":{"x":68,"y":418,"width":32,"height":9}},{"id":"0bd128f5-acbd-45ac-a759-ccce8c2e605f","block_type":"box","text":"Discretionary Incentive Compensation.","page_number":32,"box":{"x":102,"y":441,"width":281,"height":11}},{"id":"844c2c69-69b7-4ce7-b5fe-ff93a03cff77","block_type":"box","text":"Discretionary incentive compensation is a function of several","page_number":32,"box":{"x":391,"y":441,"width":432,"height":11}},{"id":"14a40acd-3511-4e29-88b3-0d024ea68daa","block_type":"box","text":"components: the per formance of BlackRock, Inc., the per formance of the por tfolio manager’s group within","page_number":32,"box":{"x":69,"y":456,"width":759,"height":11}},{"id":"88f99b86-b11e-4429-9bc5-51aedc26abf8","block_type":"box","text":"BlackRock, the investment per formance, including risk-adjusted returns, of the firm’s assets under management or","page_number":32,"box":{"x":70,"y":471,"width":821,"height":11}},{"id":"491ac6ba-b645-4ee4-85ae-770938b10401","block_type":"box","text":"supervision by that por tfolio manager relative to predetermined benchmarks, and the individual’s per formance and","page_number":32,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"e988ad6d-5d6b-4654-847b-dda57992bfc5","block_type":"box","text":"contribution to the overall per formance of these por tfolios and BlackRock. In most cases, these benchmarks are the","page_number":32,"box":{"x":69,"y":501,"width":832,"height":11}},{"id":"eecfc666-29ca-4b37-810d-accccf9ad66b","block_type":"box","text":"same as the benchmark or benchmarks against which the per formance of the Funds or other accounts managed by","page_number":32,"box":{"x":69,"y":516,"width":824,"height":12}},{"id":"b7dd9449-65dd-4c1e-bcfc-1f428d17866a","block_type":"box","text":"the por tfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":32,"box":{"x":68,"y":532,"width":832,"height":11}},{"id":"6d005f6b-65cc-4090-a638-37fdc5d1e84c","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Funds and","page_number":32,"box":{"x":69,"y":547,"width":818,"height":11}},{"id":"7419a5f6-c696-4c15-a381-4f1b35ceab45","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance of fixed-income","page_number":32,"box":{"x":69,"y":562,"width":832,"height":11}},{"id":"ec725422-d119-43c1-9d26-eb78a1e7269a","block_type":"box","text":"funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods,","page_number":32,"box":{"x":68,"y":577,"width":822,"height":11}},{"id":"d2765018-4163-4b35-8b8b-cd22e3bafe67","block_type":"box","text":"as applicable. With respect to these por tfolio managers, such benchmarks for the Fund and other accounts are: A","page_number":32,"box":{"x":69,"y":592,"width":813,"height":11}},{"id":"741ef89a-14e5-4752-8746-a27b0e1a3d86","block_type":"box","text":"combination of market-based indices (e.g., Bloomberg U.S. Aggregate Bond Index), cer tain customized indices and","page_number":32,"box":{"x":69,"y":607,"width":816,"height":11}},{"id":"691ed0b4-4e46-4aba-bda4-e2f8b50b5c47","block_type":"box","text":"cer tain fund industry peer groups.","page_number":32,"box":{"x":69,"y":622,"width":241,"height":12}},{"id":"9bcaa0e8-e5b4-4c1c-8d4a-5d928bf49fb3","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":32,"box":{"x":102,"y":645,"width":389,"height":11}},{"id":"16d45f99-35d2-4602-90d6-03e37736bc8c","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":32,"box":{"x":499,"y":645,"width":383,"height":11}},{"id":"9a5a0503-9574-44db-ab4f-22dbf6307a2a","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":32,"box":{"x":70,"y":660,"width":815,"height":11}},{"id":"217e3391-1628-44cd-9591-a4bb79a4d160","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":32,"box":{"x":68,"y":675,"width":522,"height":11}},{"id":"f27fb0dc-0a87-4412-bc3b-94e73497f8f2","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":32,"box":{"x":102,"y":698,"width":760,"height":11}},{"id":"41f5cab9-3d4c-4a91-9e29-d5fb2605dc3c","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":32,"box":{"x":69,"y":713,"width":795,"height":11}},{"id":"a63f2a5d-e558-45dd-99e2-d29ce5d95c67","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":32,"box":{"x":69,"y":728,"width":805,"height":11}},{"id":"53256fc9-2dbf-4cd5-9eda-7aca941ba271","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":32,"box":{"x":69,"y":743,"width":822,"height":12}},{"id":"06877d46-88a7-437f-89da-dc016aa131aa","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":32,"box":{"x":68,"y":758,"width":839,"height":12}},{"id":"dc31e2a3-b019-4fd6-ba3b-defa44961532","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":32,"box":{"x":69,"y":773,"width":802,"height":12}},{"id":"05736647-6545-460e-b91e-5b743a29d500","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":32,"box":{"x":70,"y":789,"width":820,"height":11}},{"id":"49698670-8460-442c-ae43-ef6a88df4023","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":32,"box":{"x":70,"y":804,"width":801,"height":11}},{"id":"c5fd9242-e5c6-4d2d-b900-8ab20f55d9ee","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":32,"box":{"x":70,"y":819,"width":831,"height":11}},{"id":"05387d01-acda-49e7-b991-ffb373507695","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":32,"box":{"x":69,"y":834,"width":479,"height":11}},{"id":"0b3f46ed-3b9e-4857-a97c-f1b5257c235f","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":32,"box":{"x":102,"y":857,"width":785,"height":11}},{"id":"1068033f-d8a8-49a6-89e9-3c63f10dfe09","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":32,"box":{"x":68,"y":872,"width":836,"height":11}},{"id":"1c6fe35d-29c8-48ac-843f-451d930b2337","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":32,"box":{"x":68,"y":887,"width":821,"height":11}},{"id":"6047c24b-b0ad-4186-bf59-7b4c446738ac","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":32,"box":{"x":69,"y":902,"width":829,"height":11}},{"id":"c11bdd6d-9e27-4e02-9c6e-9f6f15cf2e6a","block_type":"box","text":"I-21","page_number":32,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"4af8ab84-d57e-44c1-9495-179cb7fbf14c","block_type":"box","text":"NM1026U-5982643-32/241","page_number":32,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"298d0bc1-63c1-414a-ac48-7d3b8fcc55bb","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":33,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"72b86920-e872-4663-8a33-6024c68cbc89","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":33,"box":{"x":69,"y":60,"width":414,"height":11}},{"id":"fe8cc24e-0824-4752-b23d-2fd00e93f3d1","block_type":"box","text":"Other Compensation Benefits.","page_number":33,"box":{"x":101,"y":82,"width":218,"height":11}},{"id":"f658f489-3773-41ac-9001-4f7b8b4d24d7","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":33,"box":{"x":327,"y":82,"width":552,"height":12}},{"id":"4a09dcfb-7de6-45b2-b8e5-f5b0a2ab4de5","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":33,"box":{"x":69,"y":98,"width":582,"height":11}},{"id":"0297d761-f954-44c3-aa3f-007fa7071a7a","block_type":"box","text":"Incentive Savings Plans","page_number":33,"box":{"x":102,"y":120,"width":167,"height":12}},{"id":"4bba1a7b-9b80-4e13-beb2-9721371913de","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":33,"box":{"x":274,"y":120,"width":614,"height":12}},{"id":"25d5a528-ed0b-4f8a-b7bb-7e19d0eb353c","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":33,"box":{"x":69,"y":135,"width":831,"height":12}},{"id":"499f2177-92fa-4ab4-9b3b-91f15c5e24ce","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":33,"box":{"x":70,"y":150,"width":785,"height":12}},{"id":"892d3a5f-5530-4dc8-9bb8-5ba991b57b94","block_type":"box","text":"company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a","page_number":33,"box":{"x":69,"y":165,"width":830,"height":12}},{"id":"f2b80e3d-b666-433d-ac55-a4137e102811","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":33,"box":{"x":69,"y":181,"width":799,"height":11}},{"id":"27e055bf-bc05-4e58-a69a-178e993686df","block_type":"box","text":"($350,000 for 2025). The RSP offers a range of investment options, including registered investment companies and","page_number":33,"box":{"x":69,"y":195,"width":831,"height":12}},{"id":"525b6511-b4ac-423e-b2be-1ad41304657c","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":33,"box":{"x":69,"y":211,"width":798,"height":11}},{"id":"4ab59087-519c-4227-b136-890cd6cfd073","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":33,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"2dc97db2-637d-4502-91cd-aefea5a66662","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":33,"box":{"x":68,"y":241,"width":793,"height":11}},{"id":"5b36a0b7-226b-4a0f-9007-71684c3da74f","block_type":"box","text":"investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date.","page_number":33,"box":{"x":70,"y":256,"width":832,"height":11}},{"id":"8be3543e-fd11-4d7f-967e-039a70a60abf","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":33,"box":{"x":68,"y":271,"width":805,"height":11}},{"id":"c7606321-3b95-467b-a4c4-123bc25e5d60","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":33,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"09c111d3-f351-4024-9506-b2c96cbdd165","block_type":"box","text":"par ticipate in these plans.","page_number":33,"box":{"x":70,"y":302,"width":185,"height":11}},{"id":"a94de4ea-ab21-4fd9-899b-4f386b839385","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":33,"box":{"x":69,"y":332,"width":268,"height":11}},{"id":"9615f3cb-aac2-4dbe-8e65-0d1a60307013","block_type":"box","text":"As of December 31, 2025, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":33,"box":{"x":101,"y":355,"width":775,"height":11}},{"id":"8329fb31-f717-440a-b4cd-8eec6baa2b2c","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":33,"box":{"x":69,"y":370,"width":519,"height":11}},{"id":"8e1c7b8e-094a-4ff0-be40-655fce7e76f1","block_type":"box","text":"Portfolio Manager","page_number":33,"box":{"x":69,"y":408,"width":105,"height":9}},{"id":"6a9eadac-6812-49b2-916d-5e83e9503f01","block_type":"box","text":"Dollar Range of Equity","page_number":33,"box":{"x":757,"y":398,"width":129,"height":9}},{"id":"38e441fe-667f-4cba-b6b2-39e8bf44f22f","block_type":"box","text":"Securities Beneficially Owned","page_number":33,"box":{"x":732,"y":408,"width":173,"height":9}},{"id":"42a85bd6-44d5-4e6a-af96-bb11ab02c076","block_type":"box","text":"1","page_number":33,"box":{"x":906,"y":408,"width":4,"height":4}},{"id":"625be5ca-2a76-4194-a5d2-cd7b56e50433","block_type":"box","text":"Rick Rieder . . .","page_number":33,"box":{"x":70,"y":426,"width":102,"height":9}},{"id":"4d2d5849-48bc-4997-8fb6-02ffe9d466cc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":33,"box":{"x":178,"y":425,"width":640,"height":11}},{"id":"3c04069f-c831-4dfa-8945-1ab1994b3334","block_type":"box","text":"000,000","page_number":33,"box":{"x":820,"y":426,"width":63,"height":10}},{"id":"3069897c-1aed-400d-89a6-86bdda46fbae","block_type":"box","text":"Russell Brownback . .","page_number":33,"box":{"x":70,"y":441,"width":150,"height":9}},{"id":"ebd19f5c-dc5c-4453-b9ea-87913cf3f0b4","block_type":"box","text":"...........................................................","page_number":33,"box":{"x":227,"y":448,"width":474,"height":2}},{"id":"624955da-0aef-43d6-9d03-d742a4f0eebb","block_type":"box","text":"$100,001 - $500,000","page_number":33,"box":{"x":742,"y":440,"width":158,"height":11}},{"id":"905a30f2-f738-4d94-b665-1f84ad78fcb4","block_type":"box","text":"Dylan Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":456,"width":631,"height":11}},{"id":"e6917f71-70e1-49f4-becf-7cc08459dc1e","block_type":"box","text":"None","page_number":33,"box":{"x":804,"y":456,"width":35,"height":9}},{"id":"14e39e8c-087b-46a7-a487-c797c7660c0c","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":481,"width":3,"height":3}},{"id":"d07631f1-cb59-4af6-b6a8-3cd0d2c73c92","block_type":"box","text":"Includes securities attributable to the por tfolio manager’s par ticipation in cer tain deferred compensation and retirement programs.","page_number":33,"box":{"x":94,"y":480,"width":746,"height":9}},{"id":"db36aeed-5846-445b-a4a8-1381ddbc3989","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":33,"box":{"x":69,"y":509,"width":403,"height":11}},{"id":"a74886e2-c7b2-474b-b63f-95b71d22cd73","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":33,"box":{"x":102,"y":532,"width":727,"height":11}},{"id":"b5573e26-69f6-4bb7-bd30-9c4275624231","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":33,"box":{"x":70,"y":547,"width":814,"height":11}},{"id":"9d9e63b9-83ee-4ee7-bc3e-27bcc7c7409b","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":33,"box":{"x":70,"y":562,"width":837,"height":11}},{"id":"6e66d0b2-00fd-4ae5-a5c7-654a38fce093","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":33,"box":{"x":70,"y":577,"width":810,"height":11}},{"id":"80c7d67a-5414-4768-be0c-f5b6f6a8f2d0","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":33,"box":{"x":69,"y":592,"width":782,"height":11}},{"id":"456e93d5-a206-4a61-84ff-826b15aa399d","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":33,"box":{"x":69,"y":607,"width":830,"height":11}},{"id":"3d049432-57ab-49f6-9918-1b6da95df55b","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":33,"box":{"x":69,"y":623,"width":828,"height":11}},{"id":"bd3549aa-21b9-42d4-b0ad-c6429e78e020","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":33,"box":{"x":68,"y":637,"width":834,"height":12}},{"id":"0c308b35-9600-4915-ac4b-63dbb9d8a91f","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":33,"box":{"x":70,"y":652,"width":777,"height":12}},{"id":"f89e57ce-0961-4bb6-ae36-bf425324e469","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":33,"box":{"x":70,"y":668,"width":821,"height":11}},{"id":"e1d99784-8b90-465c-bf45-5479cb29695e","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":33,"box":{"x":69,"y":683,"width":819,"height":11}},{"id":"0b6d445e-4122-4ca6-b92c-9c09c2d098a1","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":33,"box":{"x":69,"y":698,"width":832,"height":11}},{"id":"40bc1684-1f16-4ad5-b28e-af10769c9038","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":33,"box":{"x":68,"y":713,"width":804,"height":11}},{"id":"a8a3e826-6eb7-4d5d-948d-0b7cf99ce0ea","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":33,"box":{"x":69,"y":728,"width":760,"height":11}},{"id":"c5174343-223b-4124-9d1f-f9c64f632c34","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":33,"box":{"x":69,"y":743,"width":834,"height":12}},{"id":"22405ae4-0364-4feb-b255-f1df044d0c0f","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":33,"box":{"x":69,"y":758,"width":836,"height":12}},{"id":"c94a64fa-eb2b-40c8-a828-ed5a69db6ebd","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":33,"box":{"x":69,"y":773,"width":822,"height":12}},{"id":"8b6f17dc-26b1-42a1-a86b-62959124cde0","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":33,"box":{"x":70,"y":789,"width":835,"height":11}},{"id":"c38c910d-7784-40a6-9ac0-9c6db794a1ed","block_type":"box","text":"be opposed to the strategy utilized for a Fund. It should also be noted that Messrs. Rieder, Brownback and Price may","page_number":33,"box":{"x":69,"y":804,"width":835,"height":11}},{"id":"220c22ad-745a-4271-a2d3-0a09557c5aa1","block_type":"box","text":"be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only","page_number":33,"box":{"x":69,"y":819,"width":834,"height":11}},{"id":"b802e4ff-4a79-4bb2-a230-b4dec2c69165","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Rieder, Brownback and Price may therefore be entitled to receive a","page_number":33,"box":{"x":69,"y":834,"width":796,"height":11}},{"id":"66f1ce75-652a-4c18-b97d-98068b2ec3b6","block_type":"box","text":"por tion of any incentive fees earned on such accounts.","page_number":33,"box":{"x":70,"y":849,"width":390,"height":11}},{"id":"6502180d-5002-4bad-88d1-4a0e4fa334b3","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":33,"box":{"x":101,"y":872,"width":788,"height":11}},{"id":"0ede77e7-0712-4cb9-bf47-c458a8f5935d","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":33,"box":{"x":70,"y":887,"width":839,"height":11}},{"id":"ddcd61aa-ff7c-45db-9476-eb8d13dbfa0b","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":33,"box":{"x":68,"y":902,"width":823,"height":11}},{"id":"2e195f30-d0c9-4875-a669-20278ef3a178","block_type":"box","text":"I-22","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"2140f8af-b85f-421f-834e-6c5c41bb561d","block_type":"box","text":"NM1026U-5982643-33/241","page_number":33,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"8b412ded-70f4-4b2f-aebc-c4ff00ea63e2","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":34,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"9b853443-42bd-443e-92c5-1ed2710c3f54","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":34,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"e19eeaf6-e28f-48e0-b422-c4c786e34ecc","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":34,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"5fd160df-65f5-49bf-a588-3c9cbc5dc526","block_type":"box","text":"Accounting Services","page_number":34,"box":{"x":68,"y":105,"width":150,"height":11}},{"id":"3102ad1d-f19c-4e2e-8617-7c7fe4de04ab","block_type":"box","text":"State Street records investment, capital share and income and expense activities; verifies and transmits trade","page_number":34,"box":{"x":102,"y":128,"width":787,"height":11}},{"id":"de6e70f7-f910-46ed-966b-e45dc4ef7026","block_type":"box","text":"tickets; maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s","page_number":34,"box":{"x":68,"y":143,"width":820,"height":11}},{"id":"837256e2-35d6-4b59-b973-46cac5a2eb16","block_type":"box","text":"custodian; repor ts cash balances to the Manager; prepares cer tain financial statements; calculates expenses, gains,","page_number":34,"box":{"x":69,"y":158,"width":837,"height":11}},{"id":"b0f23f6c-e0d6-45d1-bd34-5d95239ba4e2","block_type":"box","text":"losses and income; controls disbursements; works with independent pricing sources; and computes and repor ts net","page_number":34,"box":{"x":70,"y":173,"width":829,"height":11}},{"id":"5cf22d5e-1b31-4250-8f9c-c1fc45ae7532","block_type":"box","text":"asset value. In connection with its accounting services, State Street also provides cer tain administration services.","page_number":34,"box":{"x":69,"y":188,"width":817,"height":12}},{"id":"13bd2f0e-7dc8-4c32-b456-45f418b15073","block_type":"box","text":"The table below shows the amount paid by the Fund to State Street and the Manager for accounting services for","page_number":34,"box":{"x":101,"y":211,"width":802,"height":11}},{"id":"d259f89a-cfbe-4ba4-9e3e-568724d87a49","block_type":"box","text":"the periods indicated:","page_number":34,"box":{"x":68,"y":226,"width":154,"height":11}},{"id":"4bd5bdd8-92d3-49e0-a1a7-b637a20467f7","block_type":"box","text":"Fees Paid","page_number":34,"box":{"x":718,"y":254,"width":56,"height":7}},{"id":"1893770c-11b2-4bea-9139-89803002c648","block_type":"box","text":"to State Street","page_number":34,"box":{"x":702,"y":264,"width":88,"height":8}},{"id":"9c77418d-9862-4ad5-b6ea-a2706e7428e0","block_type":"box","text":"Fees Paid","page_number":34,"box":{"x":837,"y":254,"width":55,"height":7}},{"id":"778a2b35-3206-4b93-a1a2-98b4343cb365","block_type":"box","text":"to the Manager","page_number":34,"box":{"x":819,"y":265,"width":90,"height":8}},{"id":"8ff63098-71db-4604-b7ef-f2e2a6232326","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":70,"y":282,"width":463,"height":11}},{"id":"bf4bf783-b3eb-4efa-a39a-518b8c175f0b","block_type":"box","text":".................","page_number":34,"box":{"x":539,"y":290,"width":132,"height":1}},{"id":"a77c7635-d7cc-4b65-96e5-8c50f744042b","block_type":"box","text":"$139,038 $0","page_number":34,"box":{"x":710,"y":281,"width":164,"height":12}},{"id":"63042e57-e29e-484d-bd65-725e3ef223cb","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":70,"y":297,"width":463,"height":11}},{"id":"fb2c68e0-bd10-48b9-be2c-01e47082fe94","block_type":"box","text":".................","page_number":34,"box":{"x":539,"y":305,"width":132,"height":1}},{"id":"4d53f762-2616-4e68-9ebb-4d9164c5d415","block_type":"box","text":"$122,758 $0","page_number":34,"box":{"x":710,"y":297,"width":164,"height":11}},{"id":"6917a06a-7fdc-42e0-821c-b5d79f1189bd","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":70,"y":312,"width":463,"height":11}},{"id":"0e0a9e5b-f06c-4e1b-ac55-1975007522b3","block_type":"box","text":".................","page_number":34,"box":{"x":539,"y":320,"width":132,"height":1}},{"id":"8eff23b3-746a-405a-a7eb-ea91e699653a","block_type":"box","text":"$117,568 $0","page_number":34,"box":{"x":710,"y":312,"width":164,"height":11}},{"id":"7a663024-534b-4bb3-b08f-a06add5935a1","block_type":"box","text":"Custodian Services","page_number":34,"box":{"x":69,"y":344,"width":139,"height":9}},{"id":"a9e054a5-83ae-43ad-ab01-0d0e620334b0","block_type":"box","text":"State Street Bank and Trust Company (“State Street”) has been retained to act as custodian for the Fund and is","page_number":34,"box":{"x":102,"y":366,"width":800,"height":12}},{"id":"dbda4d84-8de0-41de-9b47-31cb38d9c7a0","block_type":"box","text":"located at 1 Congress Street, Suite 1, Boston, Massachusetts 02114-2016. The custodian, among other things,","page_number":34,"box":{"x":70,"y":382,"width":803,"height":11}},{"id":"8611a6e0-50d8-4919-b075-1f30e2809d29","block_type":"box","text":"maintains a custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon","page_number":34,"box":{"x":69,"y":397,"width":832,"height":11}},{"id":"ef93bc78-9d11-4df2-a5a8-7206eec7aeca","block_type":"box","text":"purchase and upon sale or maturity, and collects and receives all income and other payments and distributions on","page_number":34,"box":{"x":70,"y":412,"width":813,"height":11}},{"id":"cfcd1652-c0f8-437b-8b00-e450e0a2e54e","block_type":"box","text":"account of the assets of the Fund.","page_number":34,"box":{"x":69,"y":427,"width":244,"height":9}},{"id":"cfdb78a4-9e1e-4faa-a3ff-d7c093580fde","block_type":"box","text":"Transfer Agency and Shareholders’ Administrative Services","page_number":34,"box":{"x":68,"y":457,"width":432,"height":11}},{"id":"027c6a86-7246-47f0-a30a-8f70ee5ad874","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), which has its principal place of business at 118","page_number":34,"box":{"x":102,"y":480,"width":765,"height":11}},{"id":"932558c5-c842-4763-ac70-ff7ee1b6bfff","block_type":"box","text":"Flanders Road, Westborough, Massachusetts 01581, serves as the transfer and dividend disbursement agent for the","page_number":34,"box":{"x":70,"y":495,"width":838,"height":11}},{"id":"8d897d92-baf2-4b37-96ae-b9769944ba04","block_type":"box","text":"Fund.","page_number":34,"box":{"x":70,"y":510,"width":36,"height":9}},{"id":"cc96c322-2acd-49cf-9c0c-dcc073eaf4e0","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides cer tain shareholder","page_number":34,"box":{"x":102,"y":533,"width":762,"height":11}},{"id":"eaeae15c-fa8b-4789-9456-2face363ebd3","block_type":"box","text":"liaison services in connection with the Fund’s investor service center. The Fund reimburses the Manager for its costs","page_number":34,"box":{"x":70,"y":548,"width":834,"height":11}},{"id":"d494fc92-1562-4f21-915a-f28eded92296","block_type":"box","text":"in maintaining the service center, which costs include, among other things, employee salaries, leasehold expenses,","page_number":34,"box":{"x":70,"y":563,"width":823,"height":11}},{"id":"61d58c71-8f60-4812-8e7e-9ce96fce02c5","block_type":"box","text":"and other out-of-pocket expenses which are a component of the transfer agency fees in the Fund’s annual repor t.","page_number":34,"box":{"x":69,"y":578,"width":807,"height":11}},{"id":"951e8324-e03d-429c-9fd3-d1a400968b3a","block_type":"box","text":"Set for th below are the amounts the Fund reimbursed BlackRock pursuant to the Shareholders’ Administrative","page_number":34,"box":{"x":102,"y":601,"width":786,"height":11}},{"id":"8e3243d4-f848-40c9-afdd-eadf76d7b2fb","block_type":"box","text":"Services Agreement for the periods indicated:","page_number":34,"box":{"x":69,"y":616,"width":325,"height":11}},{"id":"20ed5fb0-3a86-4398-9904-7faa351e0b19","block_type":"box","text":"Fees Paid","page_number":34,"box":{"x":730,"y":644,"width":56,"height":7}},{"id":"5f2a565c-6fac-4a68-877f-9e221c6932d6","block_type":"box","text":"to BlackRock","page_number":34,"box":{"x":716,"y":654,"width":80,"height":7}},{"id":"4700af7a-ac0e-448b-8241-088268353f96","block_type":"box","text":"1","page_number":34,"box":{"x":796,"y":654,"width":4,"height":4}},{"id":"69b8cfa5-3baa-4b9f-af9b-4b59beadd735","block_type":"box","text":"Fees Waived","page_number":34,"box":{"x":833,"y":644,"width":72,"height":7}},{"id":"b30b80f0-f838-430b-8e08-b8342fec7f4b","block_type":"box","text":"by BlackRock","page_number":34,"box":{"x":830,"y":654,"width":80,"height":9}},{"id":"2b62de20-a6c7-4ca2-8c85-67b2acff6aa8","block_type":"box","text":"Fiscal Year Ended December 31, 2025 . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":70,"y":672,"width":453,"height":11}},{"id":"a3116a9e-c7a1-448a-94b3-68c93c821d24","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $5,575 $5,575","page_number":34,"box":{"x":529,"y":671,"width":366,"height":12}},{"id":"115a74d7-fb97-4a7f-b442-fdcc0a26d32d","block_type":"box","text":"Fiscal Year Ended December 31, 2024 . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":70,"y":687,"width":453,"height":11}},{"id":"d5e56c19-29d9-4e30-93d8-5f862b8d6695","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $6,897 $6,897","page_number":34,"box":{"x":529,"y":686,"width":366,"height":12}},{"id":"0214d3b5-a4c0-425e-98af-b201f9ad8fc5","block_type":"box","text":"Fiscal Year Ended December 31, 2023 . . . . . . . . . . . . . . . . . . . . . .","page_number":34,"box":{"x":70,"y":702,"width":453,"height":11}},{"id":"ef20df55-3fb0-4e10-a096-803993c24c0c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $7,382 $7,382","page_number":34,"box":{"x":529,"y":702,"width":366,"height":11}},{"id":"4fc3e8b5-78e0-4a9f-978d-94bab34def28","block_type":"box","text":"1","page_number":34,"box":{"x":69,"y":727,"width":3,"height":3}},{"id":"07e31aa4-d1c8-4b04-a2c9-96743a578108","block_type":"box","text":"Pursuant to a Shareholders’ Administrative Services Agreement, the Manager provides cer tain shareholder liaison services in connection with","page_number":34,"box":{"x":94,"y":727,"width":809,"height":9}},{"id":"4164ff26-7d3a-40d4-8392-b5198b959987","block_type":"box","text":"the Fund’s investor service center. The Fund reimburses the Manager for its costs in maintaining the service center, which costs include,","page_number":34,"box":{"x":93,"y":737,"width":781,"height":9}},{"id":"9ef8efae-00dd-4e20-a2bc-671d746b08c2","block_type":"box","text":"among other things, employee salaries, leasehold expenses, and other out-of-pocket expenses which are a component of the transfer agency","page_number":34,"box":{"x":93,"y":747,"width":806,"height":9}},{"id":"6a91d29c-9065-462e-9bb7-ea85dcfd1b5e","block_type":"box","text":"fees in the Fund’s annual repor t.","page_number":34,"box":{"x":93,"y":757,"width":187,"height":9}},{"id":"6e2993a3-fa55-4809-a5f0-a6ae17945882","block_type":"box","text":"Organization and Management of Wholly-Owned Subsidiary","page_number":34,"box":{"x":69,"y":785,"width":428,"height":12}},{"id":"4084f777-9c9d-46c3-b236-fa51cee3f1b4","block_type":"box","text":"The Fund intends to gain exposure to commodity markets by investing up to 25% of its total assets in the","page_number":34,"box":{"x":101,"y":808,"width":751,"height":11}},{"id":"6af4ce22-8ce6-4f50-bcf0-7a4002f8cc01","block_type":"box","text":"Subsidiary. The Subsidiary invests primarily in commodity-related instruments.","page_number":34,"box":{"x":69,"y":823,"width":557,"height":11}},{"id":"6bf1dd7e-4d79-4ce8-83f4-10071b71aeff","block_type":"box","text":"The Subsidiary is a company organized under the laws of the Cayman Islands, whose registered office is located","page_number":34,"box":{"x":101,"y":846,"width":803,"height":11}},{"id":"4e558a19-3ab2-45e5-bba8-39713923fb0b","block_type":"box","text":"at the offices of Maples Corporate Services Limited, P.O. Box 309, Ugland House, Grand Cayman KYI-1104, Cayman","page_number":34,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"bcccaca0-7469-4fa2-9481-66b48e3da766","block_type":"box","text":"Islands. The Subsidiary’s affairs are overseen by a board of directors, which is comprised of John M. Perlowski and","page_number":34,"box":{"x":70,"y":876,"width":821,"height":11}},{"id":"40e3272a-87b0-4521-9a2f-6c587b5c459c","block_type":"box","text":"Trent Walker.","page_number":34,"box":{"x":68,"y":891,"width":91,"height":9}},{"id":"2a7cb645-02a8-4f97-81ee-c8bd8cf1f268","block_type":"box","text":"I-23","page_number":34,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"35dfc2e4-64b8-476e-8d24-c449fa1fa4ad","block_type":"box","text":"NM1026U-5982643-34/241","page_number":34,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"ec6774ba-e35f-45ab-bb4d-5f38e958f35f","block_type":"box","text":"The Manager provides investment management and administrative services to the Subsidiary. The Manager does","page_number":35,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"8f88843a-679f-4b59-a16e-bc1906b2206c","block_type":"box","text":"not receive separate compensation from the Subsidiary for providing it with investment advisory or administrative","page_number":35,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"9a5d9b5d-8207-40a8-a62e-88f3aa30d487","block_type":"box","text":"services. However, the Fund pays the Manager based on the Fund’s assets, including the assets invested in the","page_number":35,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"053c1fe4-7caa-441e-9218-2fff50924c88","block_type":"box","text":"Subsidiary. The Subsidiary entered into contracts for the provision of custody and audit services with the same","page_number":35,"box":{"x":69,"y":90,"width":792,"height":11}},{"id":"7ced2e3c-df43-4a18-b376-8ab1e69951b3","block_type":"box","text":"service providers that provide those services to the Fund.","page_number":35,"box":{"x":69,"y":105,"width":410,"height":11}},{"id":"79ba282e-93d3-4a10-be95-40162e446405","block_type":"box","text":"The Subsidiary is managed pursuant to compliance policies and procedures that are the same, in all material","page_number":35,"box":{"x":101,"y":128,"width":780,"height":11}},{"id":"289d4ae0-02a4-49ec-b424-ec7bcb986779","block_type":"box","text":"respects, as the policies and procedures adopted by the Fund. As a result, the Manager, in managing the","page_number":35,"box":{"x":69,"y":143,"width":750,"height":11}},{"id":"dd369886-e289-46fc-b4c5-4717f0f7ca04","block_type":"box","text":"Subsidiary’s por tfolio, is subject to the same investment policies and restrictions that apply to the management of","page_number":35,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"0ff646b9-96e3-4112-9a8d-f56e45cb0441","block_type":"box","text":"the Fund, and, in par ticular, to the requirements relating to por tfolio leverage, liquidity, brokerage, and the timing and","page_number":35,"box":{"x":68,"y":173,"width":836,"height":11}},{"id":"0d34dd89-0536-4914-a9fc-1273ac3d0639","block_type":"box","text":"method of the valuation of the Subsidiary’s por tfolio investments and shares of the Subsidiary. These policies and","page_number":35,"box":{"x":69,"y":188,"width":818,"height":11}},{"id":"daabe487-e5bb-4e23-942a-24809a49253a","block_type":"box","text":"restrictions are described elsewhere in detail in this SAI. The Fund and the Subsidiary test for compliance with","page_number":35,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"80b7c023-db0e-4d71-9bc5-4f1d18247925","block_type":"box","text":"cer tain investment restrictions on a consolidated basis.","page_number":35,"box":{"x":69,"y":219,"width":397,"height":8}},{"id":"52b0a566-35bd-4b08-8875-9bb17c905e9e","block_type":"box","text":"Credit Agreement","page_number":35,"box":{"x":69,"y":249,"width":129,"height":11}},{"id":"17c23cd9-38dd-429a-9c56-7e9fdec95a76","block_type":"box","text":"The Fund, along with cer tain other funds managed by the Manager and its affiliates (“Par ticipating Funds”),","page_number":35,"box":{"x":101,"y":271,"width":765,"height":12}},{"id":"ce84b37c-253d-41ec-98b5-e7b7c9a6e0b4","block_type":"box","text":"is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility terminates on","page_number":35,"box":{"x":70,"y":286,"width":748,"height":12}},{"id":"32d81ca3-1b50-4b94-9e96-815808e4d8d0","block_type":"box","text":"April 8, 2027 unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments designated","page_number":35,"box":{"x":68,"y":302,"width":818,"height":11}},{"id":"7be3a352-4c3b-4445-9f3f-061cb8007243","block_type":"box","text":"for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up to an aggregate","page_number":35,"box":{"x":68,"y":317,"width":757,"height":11}},{"id":"f480d76f-161c-4fd8-8f37-0c11ed0c0d38","block_type":"box","text":"commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as","page_number":35,"box":{"x":69,"y":331,"width":801,"height":12}},{"id":"7b8a3742-e1b0-48bd-9eae-466a1cfc7d78","block_type":"box","text":"specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet shareholder","page_number":35,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"3bb042ac-7884-4087-b83e-d93dfa5819ed","block_type":"box","text":"redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit Agreement for","page_number":35,"box":{"x":69,"y":362,"width":784,"height":11}},{"id":"268d1891-7322-4132-842a-6f7b9208895d","block_type":"box","text":"leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses and SAI, subject","page_number":35,"box":{"x":70,"y":377,"width":839,"height":12}},{"id":"36449b0c-9627-4568-8452-7bada58c9520","block_type":"box","text":"to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other fees and","page_number":35,"box":{"x":68,"y":392,"width":794,"height":12}},{"id":"7b4533ac-ab38-47d9-8b46-e2b69a648bd8","block_type":"box","text":"expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the Fund’s","page_number":35,"box":{"x":69,"y":407,"width":809,"height":12}},{"id":"395f35f4-deb5-4e44-9e48-7bd368241dc5","block_type":"box","text":"return. The Fund will be charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":35,"box":{"x":69,"y":423,"width":753,"height":11}},{"id":"31300894-912e-42be-a0b2-e565a66cba04","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund is","page_number":35,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"f2a1b70c-3026-4db0-bd70-a7719e7830ae","block_type":"box","text":"charged interest at a variable rate.","page_number":35,"box":{"x":69,"y":453,"width":245,"height":11}},{"id":"b5258b46-1b8b-4ce8-9e27-2486e4fa1185","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":35,"box":{"x":68,"y":483,"width":491,"height":11}},{"id":"b530a02c-4372-4dda-9b16-fa9eb6fcdc30","block_type":"box","text":"Distribution Agreement and Distribution and Service Plan.","page_number":35,"box":{"x":102,"y":506,"width":421,"height":11}},{"id":"01008406-96ab-473c-a8a0-794c253b4a3e","block_type":"box","text":"The Fund has entered into a distribution agreement","page_number":35,"box":{"x":529,"y":506,"width":366,"height":11}},{"id":"cf0b9aa8-e180-496e-974e-f7e713bbbd9e","block_type":"box","text":"with BlackRock Investments, LLC (“BRIL,” or the “Distributor”) under which BRIL, as agent, offers shares of the Fund","page_number":35,"box":{"x":68,"y":521,"width":834,"height":11}},{"id":"71943a65-7361-47de-bf29-ba5c986fe69d","block_type":"box","text":"on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is not","page_number":35,"box":{"x":69,"y":536,"width":774,"height":11}},{"id":"908f03ca-7d9d-48b4-8638-bbde6e27e336","block_type":"box","text":"obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New York,","page_number":35,"box":{"x":69,"y":551,"width":822,"height":11}},{"id":"4c5c0401-6be1-4f88-a3a9-23c50d882bde","block_type":"box","text":"New York 10001. BRIL is an affiliate of BlackRock.","page_number":35,"box":{"x":70,"y":566,"width":359,"height":9}},{"id":"efd9eda1-18a8-4195-a46e-c8401eef0b35","block_type":"box","text":"The Fund may also pay shareholder servicing fees (also referred to as general shareholder liaison services fees)","page_number":35,"box":{"x":101,"y":589,"width":803,"height":11}},{"id":"e873911d-a8f3-48f7-a889-5cae42d75801","block_type":"box","text":"to affiliated and unaffiliated brokers, dealers, financial institutions, insurance companies, retirement plan record","page_number":35,"box":{"x":68,"y":604,"width":808,"height":11}},{"id":"d5653189-4e6f-4205-b4f3-0171218d662c","block_type":"box","text":"keepers and other financial intermediaries (including BlackRock, BRIL and their affiliates) (collectively, “Service","page_number":35,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"51a3e859-2267-49e6-9cee-502a5263c2ee","block_type":"box","text":"Organizations”) for cer tain suppor t services rendered by Service Organizations to their customers who are the","page_number":35,"box":{"x":69,"y":634,"width":786,"height":12}},{"id":"1cb2df03-7164-4a50-b2fb-cf6cbf9f076e","block_type":"box","text":"beneficial owners of Investor A and Investor C Shares of the Fund.","page_number":35,"box":{"x":69,"y":649,"width":470,"height":9}},{"id":"e7e70c5b-bd5f-43b2-a6e5-79c3414c9146","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":35,"box":{"x":102,"y":672,"width":773,"height":11}},{"id":"915aa2b6-f3d2-4e4f-a953-a4cc500724b5","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of BlackRock, for the periods indicated.","page_number":35,"box":{"x":69,"y":687,"width":720,"height":11}},{"id":"4c28c7a3-982e-4fe7-bff9-0507478b21db","block_type":"box","text":"Investor A Sales Charges Information","page_number":35,"box":{"x":70,"y":717,"width":264,"height":12}},{"id":"d6bd70b1-3eb4-4d79-8c89-35f483eeb3e3","block_type":"box","text":"Investor A Shares","page_number":35,"box":{"x":638,"y":746,"width":102,"height":7}},{"id":"e84d522a-7020-47b0-97fc-23a04507a650","block_type":"box","text":"Gross Sales","page_number":35,"box":{"x":468,"y":761,"width":68,"height":8}},{"id":"96aa47b5-5b7e-4f8c-a59d-d9f376e3cd6f","block_type":"box","text":"Charges","page_number":35,"box":{"x":478,"y":772,"width":48,"height":8}},{"id":"4c9f3aa6-b9f7-4067-846c-7d97b9a43227","block_type":"box","text":"Collected","page_number":35,"box":{"x":475,"y":782,"width":54,"height":7}},{"id":"6dd144fe-9f34-4496-9971-16a61baefcd8","block_type":"box","text":"Sales Charges","page_number":35,"box":{"x":566,"y":761,"width":84,"height":9}},{"id":"b1733dd1-e11a-47c0-a527-cf5931db4ee7","block_type":"box","text":"Retained by","page_number":35,"box":{"x":574,"y":772,"width":69,"height":8}},{"id":"5b50c960-c2c2-4559-acfa-a5870c9ead6c","block_type":"box","text":"BRIL","page_number":35,"box":{"x":595,"y":782,"width":27,"height":7}},{"id":"f43df443-f563-4463-9cff-199982a57736","block_type":"box","text":"Sales Charges","page_number":35,"box":{"x":679,"y":761,"width":84,"height":9}},{"id":"cd3fee75-1f0d-4e8f-97c6-eb6f91df534d","block_type":"box","text":"Paid to","page_number":35,"box":{"x":701,"y":772,"width":41,"height":7}},{"id":"1c7316b3-bf77-4471-b2d4-d2dce1c639c9","block_type":"box","text":"Affiliates","page_number":35,"box":{"x":695,"y":782,"width":52,"height":7}},{"id":"5f48dcd6-e3cc-4927-b12a-d0f4d9e89322","block_type":"box","text":"CDSCs Received","page_number":35,"box":{"x":803,"y":761,"width":96,"height":8}},{"id":"543dfac4-2f6d-4251-b54d-0c3f3c0d5924","block_type":"box","text":"on Redemption of","page_number":35,"box":{"x":800,"y":771,"width":103,"height":9}},{"id":"70a3d59b-644c-452b-8dcd-71f2cd4dafcb","block_type":"box","text":"Load-Waived Shares","page_number":35,"box":{"x":793,"y":782,"width":116,"height":7}},{"id":"d104fa89-57fe-4018-8399-e764dd4db09c","block_type":"box","text":"Fiscal Year Ended December 31, 2025","page_number":35,"box":{"x":70,"y":799,"width":273,"height":11}},{"id":"b2255af5-4fcd-49c9-9feb-bb3b5b1f5857","block_type":"box","text":"...........","page_number":35,"box":{"x":354,"y":807,"width":83,"height":1}},{"id":"fc5eeecd-88ee-4cef-846e-1455038a9a25","block_type":"box","text":"$19,735 $1,453 $1,453 $ 0","page_number":35,"box":{"x":471,"y":799,"width":399,"height":11}},{"id":"79481c04-a9e9-410a-9e6a-451773fb74f7","block_type":"box","text":"Fiscal Year Ended December 31, 2024","page_number":35,"box":{"x":70,"y":815,"width":274,"height":10}},{"id":"3e4f5977-4154-495e-a6ca-836c6134b4d7","block_type":"box","text":"...........","page_number":35,"box":{"x":354,"y":822,"width":83,"height":1}},{"id":"7e7268d8-03ca-495e-8793-e913a3ff2fbe","block_type":"box","text":"$19,206 $1,622 $1,622 $218","page_number":35,"box":{"x":471,"y":814,"width":399,"height":11}},{"id":"d64d5d0b-5b11-4432-8af2-d1f83b01ff2a","block_type":"box","text":"Fiscal Year Ended December 31, 2023","page_number":35,"box":{"x":70,"y":830,"width":273,"height":10}},{"id":"fb765c7e-3eda-486f-80e3-c64904aa679d","block_type":"box","text":"...........","page_number":35,"box":{"x":354,"y":837,"width":83,"height":1}},{"id":"8affea99-d6ce-4db6-bb4b-0ee2b12fc6e7","block_type":"box","text":"$23,496 $1,677 $1,677 $430","page_number":35,"box":{"x":471,"y":829,"width":399,"height":11}},{"id":"4f832ed5-6ddd-452f-b178-1624938db849","block_type":"box","text":"I-24","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b1a84436-8a03-4067-a9f7-4b0a4ccbdf48","block_type":"box","text":"NM1026U-5982643-35/241","page_number":35,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"667b4804-2048-4f46-a180-484137cb5417","block_type":"box","text":"Investor C Sales Charges Information","page_number":36,"box":{"x":70,"y":45,"width":265,"height":11}},{"id":"33d4e919-920a-472e-bc81-a8b564c69e3d","block_type":"box","text":"Investor C Shares","page_number":36,"box":{"x":752,"y":73,"width":103,"height":7}},{"id":"b561095c-e28e-4869-a71c-c843501cba3c","block_type":"box","text":"CDSCs Received","page_number":36,"box":{"x":698,"y":89,"width":96,"height":7}},{"id":"7ffbb19d-7dd4-4de8-ad1b-eb6f2e434bbe","block_type":"box","text":"by BRIL","page_number":36,"box":{"x":724,"y":99,"width":44,"height":9}},{"id":"320fd5d8-f660-46b1-95c7-6ddaedf542fc","block_type":"box","text":"CDSCs Paid to","page_number":36,"box":{"x":824,"y":89,"width":85,"height":7}},{"id":"3b921c59-7786-464c-b159-6d7e8517bf12","block_type":"box","text":"Affiliates","page_number":36,"box":{"x":841,"y":99,"width":52,"height":7}},{"id":"008498a1-809f-4f2e-bb4f-a1dea60255b4","block_type":"box","text":"Fiscal Year Ended December 31, 2025. . .","page_number":36,"box":{"x":70,"y":117,"width":295,"height":10}},{"id":"62ef9954-c8a8-422d-a691-d838daa2d28d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15 $ 15","page_number":36,"box":{"x":371,"y":116,"width":515,"height":10}},{"id":"26807774-a1e5-4fe3-b147-18de05837ec1","block_type":"box","text":"Fiscal Year Ended December 31, 2024. . .","page_number":36,"box":{"x":70,"y":132,"width":295,"height":10}},{"id":"a6b9c3c7-bb35-4575-b114-3e662252c854","block_type":"box","text":".....................................","page_number":36,"box":{"x":371,"y":139,"width":295,"height":1}},{"id":"2c74603e-d60c-459a-87f1-1f71c29ff114","block_type":"box","text":"$731 $731","page_number":36,"box":{"x":727,"y":131,"width":159,"height":10}},{"id":"5ef0b664-b312-4198-ae7e-abe90bc3974d","block_type":"box","text":"Fiscal Year Ended December 31, 2023. . .","page_number":36,"box":{"x":70,"y":147,"width":295,"height":10}},{"id":"e94a5ace-a6cc-4c9b-9b7e-f602979105d8","block_type":"box","text":".....................................","page_number":36,"box":{"x":371,"y":154,"width":295,"height":2}},{"id":"99577400-30e1-4ef0-8f53-e3696e06838a","block_type":"box","text":"$165 $165","page_number":36,"box":{"x":727,"y":146,"width":159,"height":10}},{"id":"b3419720-3984-4b02-9ec6-435d43206ba9","block_type":"box","text":"The table below provides information for the fiscal year ended December 31, 2025 about the 12b-1 fees the","page_number":36,"box":{"x":101,"y":171,"width":774,"height":11}},{"id":"afecc86c-e80c-46d8-9adf-5ab9378d1f90","block_type":"box","text":"Fund paid to BRIL under the Fund’s 12b-1 plans. A significant amount of the fees collected by BRIL were paid to","page_number":36,"box":{"x":70,"y":186,"width":796,"height":11}},{"id":"341d294b-a9d6-47e8-81ba-55fea680870e","block_type":"box","text":"affiliates, for providing shareholder servicing activities for Investor A Shares and for providing shareholder servicing","page_number":36,"box":{"x":69,"y":201,"width":823,"height":11}},{"id":"fad4a43d-9a4c-432e-80e3-010a8d1651b7","block_type":"box","text":"and distribution-related activities and services for Investor C Shares.","page_number":36,"box":{"x":69,"y":216,"width":488,"height":9}},{"id":"0c294505-d332-4cd9-a444-667e1d65a5de","block_type":"box","text":"Class Name","page_number":36,"box":{"x":69,"y":254,"width":68,"height":7}},{"id":"c0b288f8-0acc-4657-a2b0-8046d921e8fb","block_type":"box","text":"Fees Paid","page_number":36,"box":{"x":845,"y":244,"width":56,"height":7}},{"id":"76e06388-bd01-4671-97d4-b0de04e3761e","block_type":"box","text":"to BRIL","page_number":36,"box":{"x":851,"y":254,"width":44,"height":7}},{"id":"d408a987-cb5f-4d27-9d36-5952078d7534","block_type":"box","text":"Investor A Shares . .","page_number":36,"box":{"x":70,"y":272,"width":140,"height":9}},{"id":"38981d71-76b1-45c4-9a76-2dfb6ba1f508","block_type":"box","text":".........................................................................","page_number":36,"box":{"x":217,"y":279,"width":588,"height":2}},{"id":"c06521e2-6a3d-426b-98c0-3e56829c56ed","block_type":"box","text":"$213,626","page_number":36,"box":{"x":837,"y":271,"width":72,"height":12}},{"id":"471b0667-1aaf-4296-99b2-6b6e3f035718","block_type":"box","text":"Investor C Shares","page_number":36,"box":{"x":70,"y":287,"width":125,"height":9}},{"id":"210681d1-b13c-4bb6-a2d7-b7f375cd730e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 27,949","page_number":36,"box":{"x":200,"y":286,"width":709,"height":12}},{"id":"8e883ea7-5dff-4c2f-a1db-c046011447fe","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":36,"box":{"x":68,"y":319,"width":318,"height":11}},{"id":"d2e157b5-ceb0-44bf-8afd-acdf4586a916","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund’s, based on","page_number":36,"box":{"x":101,"y":341,"width":780,"height":12}},{"id":"01b18dc4-0f5f-46a1-8d74-7832b5c63a4c","block_type":"box","text":"the value of the Fund’s Investor A Shares’ net assets and number of Investor A Shares outstanding as of","page_number":36,"box":{"x":68,"y":356,"width":750,"height":12}},{"id":"c87c94e2-c4dc-4781-9842-6c1f640ef0f1","block_type":"box","text":"December 31, 2025 follows:","page_number":36,"box":{"x":70,"y":372,"width":202,"height":10}},{"id":"718ed11d-bfc9-49df-8b68-5f72fd51d4f2","block_type":"box","text":"Investor A Shares","page_number":36,"box":{"x":807,"y":400,"width":102,"height":7}},{"id":"38cd593d-19d4-4f83-a7a3-2b246f9264dc","block_type":"box","text":"Net Assets","page_number":36,"box":{"x":70,"y":418,"width":76,"height":9}},{"id":"c123178f-a13b-4439-8ad0-5eadfbb4d77a","block_type":"box","text":".............................................................................","page_number":36,"box":{"x":154,"y":425,"width":621,"height":1}},{"id":"7591faee-877a-458a-9cbb-7f919589e5bc","block_type":"box","text":"$86,206,850","page_number":36,"box":{"x":810,"y":417,"width":96,"height":11}},{"id":"2340f9a4-eed3-4a5c-9273-57a888f32bf9","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":36,"box":{"x":70,"y":433,"width":444,"height":11}},{"id":"5fad5f2b-129f-4110-a71a-dac430ecaca2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,","page_number":36,"box":{"x":521,"y":433,"width":321,"height":10}},{"id":"eb6facfc-8969-43cf-a4ff-42f841e9a0d2","block_type":"box","text":"998,286","page_number":36,"box":{"x":844,"y":433,"width":62,"height":10}},{"id":"2579ace2-d253-4973-8b7b-b4ff0b4fb7da","block_type":"box","text":"Net Asset Value Per Share","page_number":36,"box":{"x":70,"y":448,"width":185,"height":9}},{"id":"8bc64229-dee6-4156-b8ab-32d6f12c9b6e","block_type":"box","text":"(net assets divided by number of shares outstanding) . . . . . . . . .","page_number":36,"box":{"x":79,"y":462,"width":452,"height":12}},{"id":"f3c2d986-b4c9-4d30-903d-8e129df0b86a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.39","page_number":36,"box":{"x":537,"y":462,"width":369,"height":10}},{"id":"8ecce6b6-f6b1-4c35-897f-23f8fbf369f6","block_type":"box","text":"Sales Charge ( 4.00% of offering price; 4.17% of net asset value per share)","page_number":36,"box":{"x":69,"y":477,"width":538,"height":12}},{"id":"232d7950-8bf6-4fd0-b7e7-5e8e6b2ecdaa","block_type":"box","text":"1","page_number":36,"box":{"x":609,"y":478,"width":4,"height":4}},{"id":"284dd90f-a713-43e9-ac04-1762476778e3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $0.22","page_number":36,"box":{"x":619,"y":477,"width":287,"height":10}},{"id":"f6590174-e2cd-4b25-a370-10f8eb4ac59e","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.61","page_number":36,"box":{"x":69,"y":496,"width":837,"height":12}},{"id":"059fac59-c44a-4929-a3a9-19e4912d5942","block_type":"box","text":"1","page_number":36,"box":{"x":69,"y":529,"width":3,"height":4}},{"id":"9d1f5f06-a74f-4cae-8bc0-1322c0d516b7","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge applicable.","page_number":36,"box":{"x":94,"y":529,"width":527,"height":9}},{"id":"db55e13e-eee4-416b-b711-2ad95a4a2f27","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’ net asset value computed as","page_number":36,"box":{"x":101,"y":550,"width":787,"height":11}},{"id":"aedbd9bd-ed91-4506-ad78-8ce7e53f3310","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":36,"box":{"x":69,"y":565,"width":833,"height":11}},{"id":"ed5ad72a-13c6-4748-853d-186930212d4d","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":36,"box":{"x":69,"y":580,"width":813,"height":11}},{"id":"6cb23aa0-653d-40c2-a19a-fa11e369a8a0","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":36,"box":{"x":69,"y":595,"width":377,"height":11}},{"id":"6ad11a0e-f4b9-4bad-a66f-e25f0c70d6b9","block_type":"box","text":"The Subsidiary is subject to the same valuation policies as the Fund as described in “Pricing of Shares” in Par t II","page_number":36,"box":{"x":101,"y":618,"width":807,"height":11}},{"id":"9056c67f-49bc-46d2-9bf4-b0acad569ff1","block_type":"box","text":"of this SAI. The Fund’s investment in the Subsidiary is valued based on the value of the Subsidiary’s por tfolio","page_number":36,"box":{"x":69,"y":633,"width":783,"height":11}},{"id":"a2d695a4-4ca0-468b-a094-9ed1d333339d","block_type":"box","text":"investments. The Subsidiary prices its por tfolio investments pursuant to the same pricing and valuation","page_number":36,"box":{"x":70,"y":648,"width":738,"height":11}},{"id":"0c32540f-9f31-4593-aedc-bef5c346f578","block_type":"box","text":"methodologies and procedures used by the Fund, which require, among other things, that each of the Subsidiary’s","page_number":36,"box":{"x":69,"y":663,"width":816,"height":12}},{"id":"ef74f075-bedb-452e-b61b-d8f9a198ad1c","block_type":"box","text":"por tfolio investments be marked-to-market (that is, the value on the Subsidiary’s books changes) each business day","page_number":36,"box":{"x":70,"y":678,"width":830,"height":12}},{"id":"d853ed63-dc3b-48b8-844e-75b425b7c4c2","block_type":"box","text":"to reflect changes in the market value of the investment.","page_number":36,"box":{"x":68,"y":693,"width":404,"height":12}},{"id":"3d02b721-36b9-4772-b559-071606dbcc3e","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":36,"box":{"x":68,"y":724,"width":302,"height":11}},{"id":"27431423-fc43-4278-b4ab-047d1e0ac654","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":36,"box":{"x":102,"y":746,"width":609,"height":12}},{"id":"e3e98030-befd-44e5-a8e5-49e9d457f8bb","block_type":"box","text":"Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates of the","page_number":36,"box":{"x":102,"y":769,"width":790,"height":11}},{"id":"27b2c067-c2d6-49a7-afb3-57ae323ea5d5","block_type":"box","text":"Manager, is set for th in the following table:","page_number":36,"box":{"x":70,"y":784,"width":304,"height":11}},{"id":"8cf59311-ea25-47b9-ad3f-4bec12e778f0","block_type":"box","text":"Aggregate Brokerage","page_number":36,"box":{"x":648,"y":813,"width":125,"height":8}},{"id":"46fe09b2-e1f7-4d57-98f2-8cb01019976a","block_type":"box","text":"Commissions Paid","page_number":36,"box":{"x":658,"y":823,"width":105,"height":7}},{"id":"a06dc79c-6f7d-45df-bcf2-57ea641ed404","block_type":"box","text":"Commissions Paid","page_number":36,"box":{"x":803,"y":812,"width":106,"height":8}},{"id":"b0c794ef-f74b-4b15-9eaf-8849c6d3037d","block_type":"box","text":"to Affiliates","page_number":36,"box":{"x":822,"y":823,"width":68,"height":7}},{"id":"c05a2446-6c11-4afa-bd03-b7b68c37defc","block_type":"box","text":"Fiscal Year Ended December 31, 2025","page_number":36,"box":{"x":70,"y":840,"width":273,"height":11}},{"id":"03373e36-9e8a-4fb6-af66-79a6bd7b80cb","block_type":"box","text":"..................................","page_number":36,"box":{"x":346,"y":848,"width":271,"height":1}},{"id":"457b14e5-09c2-4275-b4de-d1b7c0147b83","block_type":"box","text":"$280,843 $0","page_number":36,"box":{"x":675,"y":840,"width":190,"height":11}},{"id":"63001fb5-537f-47eb-8116-a4782700cc06","block_type":"box","text":"Fiscal Year Ended December 31, 2024","page_number":36,"box":{"x":70,"y":855,"width":274,"height":11}},{"id":"41910ca3-3c83-4615-ae4b-856b7c854310","block_type":"box","text":"..................................","page_number":36,"box":{"x":346,"y":863,"width":271,"height":1}},{"id":"12f98175-530a-49fd-b609-d9c6e75f3280","block_type":"box","text":"$354,170 $0","page_number":36,"box":{"x":675,"y":855,"width":190,"height":11}},{"id":"748f92af-db52-4a69-b7f0-e3a1e053fdd5","block_type":"box","text":"Fiscal Year Ended December 31, 2023","page_number":36,"box":{"x":70,"y":871,"width":273,"height":10}},{"id":"9e72d0da-e32c-47bc-abfa-4894b85ef60b","block_type":"box","text":"..................................","page_number":36,"box":{"x":346,"y":878,"width":271,"height":1}},{"id":"34c89a37-0d6b-4e7d-b2a0-98b45e985070","block_type":"box","text":"$363,148 $0","page_number":36,"box":{"x":675,"y":870,"width":190,"height":11}},{"id":"eee88dde-ae79-4766-9638-792ad320f486","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing third-par ty","page_number":36,"box":{"x":101,"y":894,"width":790,"height":12}},{"id":"c056ba3c-c6e4-4dd2-832a-9c9be823ef36","block_type":"box","text":"research services and the approximate dollar amount of the transactions involved for the fiscal year ended","page_number":36,"box":{"x":69,"y":909,"width":760,"height":12}},{"id":"5f4d1628-82e3-4415-beaa-1c5ea70166a6","block_type":"box","text":"I-25","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1253cf47-c1f0-4c48-9d6e-6233ee06e965","block_type":"box","text":"NM1026U-5982643-36/241","page_number":36,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"dcf884f0-df5a-4e62-8d4e-a53d7264cda1","block_type":"box","text":"December 31, 2025. The provision of third-par ty research services was not necessarily a factor in the placement of","page_number":37,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"6830d500-6599-4759-9371-dba098cd2a61","block_type":"box","text":"all brokerage business with such brokers.","page_number":37,"box":{"x":69,"y":60,"width":296,"height":11}},{"id":"474f1515-f37c-403a-a4dc-7c96eb2d50f5","block_type":"box","text":"Amount of Commissions","page_number":37,"box":{"x":277,"y":88,"width":141,"height":7}},{"id":"7cfa6d2c-ca17-4d3a-837f-203a8f3cb589","block_type":"box","text":"Paid to Brokers for","page_number":37,"box":{"x":293,"y":98,"width":109,"height":7}},{"id":"61b37e4d-ca98-495a-82b8-b0ad0ff34fe1","block_type":"box","text":"Providing Research Services","page_number":37,"box":{"x":265,"y":108,"width":165,"height":9}},{"id":"3d0fad5b-97cd-4593-b651-237ad9d8c703","block_type":"box","text":"Amount of Brokerage","page_number":37,"box":{"x":588,"y":98,"width":124,"height":9}},{"id":"b43a0a4e-0228-4483-bdc3-7b6c017c56f5","block_type":"box","text":"Transactions Involved","page_number":37,"box":{"x":587,"y":108,"width":126,"height":7}},{"id":"58de388d-2b9d-4eb9-b992-b7cc9c33a58d","block_type":"box","text":"$0 $0","page_number":37,"box":{"x":339,"y":125,"width":321,"height":11}},{"id":"bc304ec9-f42e-4985-8481-40be8e77b3c5","block_type":"box","text":"As of December 31, 2025, the value of the Fund’s holdings of the securities of its regular brokers or dealers (as","page_number":37,"box":{"x":101,"y":150,"width":802,"height":11}},{"id":"31b91f7e-f01c-4841-b961-dd4a3ac106d4","block_type":"box","text":"defined in Rule 10b-1 under the Investment Company Act), if any por tion of such holdings were purchased during the","page_number":37,"box":{"x":69,"y":165,"width":832,"height":11}},{"id":"b20888eb-607e-4f5a-ba6b-a73a1c2d9d1f","block_type":"box","text":"fiscal year ended December 31, 2025, is as follows:","page_number":37,"box":{"x":68,"y":180,"width":374,"height":11}},{"id":"01835ac5-46a0-4a84-a858-4fbde6a35789","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":37,"box":{"x":69,"y":208,"width":840,"height":9}},{"id":"bf2a2299-5b85-491c-80dc-bc5fe14fdfc8","block_type":"box","text":"Morgan Stanley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":37,"box":{"x":70,"y":226,"width":594,"height":11}},{"id":"72bbc798-a87a-44c1-a1e9-1bc79b9f0ab2","block_type":"box","text":"$13,963","page_number":37,"box":{"x":797,"y":225,"width":62,"height":12}},{"id":"adb9761a-685b-420e-90c9-36ec2c162f86","block_type":"box","text":"Wells Fargo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":37,"box":{"x":68,"y":241,"width":596,"height":11}},{"id":"9ddf2ea8-9e22-4071-8c24-12fe8592daf1","block_type":"box","text":"$10,990","page_number":37,"box":{"x":797,"y":241,"width":62,"height":11}},{"id":"d4ed7b06-e62f-4379-9c3f-5aad0d474be2","block_type":"box","text":"Citigroup Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D","page_number":37,"box":{"x":69,"y":256,"width":595,"height":12}},{"id":"830e9d1d-61e5-4759-b57a-5936d70b6e94","block_type":"box","text":"$10,203","page_number":37,"box":{"x":797,"y":256,"width":62,"height":11}},{"id":"8d6e7cf6-1271-4e1b-ba32-7464ca9a66d3","block_type":"box","text":"UBS Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 3,506","page_number":37,"box":{"x":70,"y":271,"width":789,"height":11}},{"id":"3993fc7c-2e76-4b5b-a6bb-77a0897402bd","block_type":"box","text":"BNP paribas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D $ 463","page_number":37,"box":{"x":70,"y":286,"width":789,"height":11}},{"id":"4a1152d1-22dc-4d5f-aa28-469df459341f","block_type":"box","text":"Citigroup Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 126","page_number":37,"box":{"x":69,"y":301,"width":790,"height":12}},{"id":"9815959e-b058-48a7-b874-5fdfedafeef0","block_type":"box","text":"Goldman Sachs Group Inc . .","page_number":37,"box":{"x":69,"y":317,"width":200,"height":11}},{"id":"645d5f76-d4e8-4074-9a52-8836acbddf03","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 45","page_number":37,"box":{"x":276,"y":316,"width":583,"height":11}},{"id":"e7397b29-e529-49db-a022-35e684bb36d7","block_type":"box","text":"The Subsidiary follows the same brokerage practices as the Fund.","page_number":37,"box":{"x":101,"y":356,"width":470,"height":11}},{"id":"9f1d66a7-340f-4613-8a54-24d753cf8a9b","block_type":"box","text":"Securities Lending","page_number":37,"box":{"x":68,"y":386,"width":135,"height":11}},{"id":"cc0f70f6-f085-4120-9515-a010d175c0d2","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":37,"box":{"x":101,"y":409,"width":807,"height":11}},{"id":"a70d3598-0032-444e-a3d6-b7d6b315f315","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":37,"box":{"x":69,"y":424,"width":817,"height":11}},{"id":"8bf9fae5-f421-4b93-95dd-3883465a3d6b","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":37,"box":{"x":69,"y":439,"width":813,"height":11}},{"id":"8585353e-8a9c-45e7-951f-e7aac237ebba","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”), acts as securities lending agent for the Fund, subject to","page_number":37,"box":{"x":70,"y":454,"width":816,"height":11}},{"id":"8c585537-26b5-4bb4-b583-89093edfcf05","block_type":"box","text":"the overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency","page_number":37,"box":{"x":68,"y":469,"width":745,"height":11}},{"id":"2ee5001e-639e-46ff-b92c-29b705fdcaa6","block_type":"box","text":"Agreement”). BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":37,"box":{"x":68,"y":485,"width":747,"height":11}},{"id":"dd04fafd-9d69-4ec3-aef7-34e9dee9abbf","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":37,"box":{"x":101,"y":507,"width":735,"height":11}},{"id":"aee97c70-b626-4ec5-bfa3-8bc21f8fa325","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":37,"box":{"x":69,"y":522,"width":834,"height":11}},{"id":"c556e3ba-f450-48bd-83bd-6362b4601786","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":37,"box":{"x":70,"y":537,"width":822,"height":11}},{"id":"3248a170-8e9c-4b04-b7e0-83c1556e1b71","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":37,"box":{"x":69,"y":552,"width":787,"height":12}},{"id":"3cba6e98-1148-4047-bfff-048b90c1d87f","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":37,"box":{"x":69,"y":567,"width":783,"height":12}},{"id":"7bbe49fe-df7e-4611-a2fb-62abdb2a09bc","block_type":"box","text":"investment of cash collateral received for securities on loan in money market funds managed by BlackRock (the","page_number":37,"box":{"x":70,"y":583,"width":794,"height":11}},{"id":"0aef7797-ffd0-41f1-86b5-5a855cc21784","block_type":"box","text":"“collateral investment fees”); however, BIM has agreed to reduce the amount of securities lending income it receives","page_number":37,"box":{"x":70,"y":598,"width":834,"height":11}},{"id":"653189ca-48b8-449d-9e1c-0475e5b65c15","block_type":"box","text":"in order to effectively limit the collateral investment fees a Fund bears to an annual rate of 0.04%. Such money","page_number":37,"box":{"x":70,"y":613,"width":792,"height":11}},{"id":"03a2efd8-b861-4cd8-8212-69d300f5e677","block_type":"box","text":"market fund shares will not be subject to a sales load, distribution fee or service fee. To the extent that the Fund","page_number":37,"box":{"x":69,"y":628,"width":805,"height":11}},{"id":"ca11d026-df97-436b-b3ea-21264edd5889","block_type":"box","text":"invests cash collateral in a non-government money market fund, the Fund may be subject to a discretionary liquidity","page_number":37,"box":{"x":70,"y":643,"width":823,"height":11}},{"id":"4c002b21-d7ac-4826-ab97-26032c4e99ee","block_type":"box","text":"fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the","page_number":37,"box":{"x":68,"y":658,"width":800,"height":11}},{"id":"24c4f8b7-f9d9-4397-b578-bea6e0202e2c","block_type":"box","text":"discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would","page_number":37,"box":{"x":69,"y":673,"width":828,"height":12}},{"id":"92156fc1-a317-4808-93f7-4c71e1a0f520","block_type":"box","text":"be, or would not be, respectively, in the best interest of the money market fund. Additionally, the Fund will be subject","page_number":37,"box":{"x":69,"y":688,"width":832,"height":12}},{"id":"4a604db5-ba76-40b6-9614-ca53b2a9c9e4","block_type":"box","text":"to a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the","page_number":37,"box":{"x":68,"y":703,"width":790,"height":12}},{"id":"95a6c8b8-fcec-47d4-81db-8830b69f509b","block_type":"box","text":"money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less than one basis point (0.01%)).","page_number":37,"box":{"x":69,"y":719,"width":821,"height":11}},{"id":"a0f3f009-3162-4fa2-ad1b-6fe0f3cdcc73","block_type":"box","text":"The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of","page_number":37,"box":{"x":68,"y":734,"width":800,"height":11}},{"id":"4195b463-52fc-4640-8c78-4acbc4e25962","block_type":"box","text":"cer tain costs the money market fund would incur if it were to sell a pro rata amount of each security in the por tfolio","page_number":37,"box":{"x":69,"y":749,"width":824,"height":11}},{"id":"f3ba463e-8e73-4154-9ff8-25a13e98618f","block_type":"box","text":"to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the","page_number":37,"box":{"x":68,"y":764,"width":826,"height":11}},{"id":"a81303fe-7211-4652-96b6-5f7022a50f5b","block_type":"box","text":"money market fund cannot estimate the costs of selling a pro rata amount of each por tfolio security in good faith and","page_number":37,"box":{"x":69,"y":779,"width":838,"height":11}},{"id":"f35e2815-1587-46b3-9b96-5c17b642e5f6","block_type":"box","text":"suppor ted by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.","page_number":37,"box":{"x":69,"y":794,"width":818,"height":11}},{"id":"b2e4b865-ed76-4a43-a6a6-2df8d18f837c","block_type":"box","text":"The imposition of any such discretionary or mandatory liquidity fee would reduce the Fund’s returns on securities","page_number":37,"box":{"x":68,"y":809,"width":807,"height":12}},{"id":"ca0c648a-6da6-4c81-bff1-c818641a021a","block_type":"box","text":"lending.","page_number":37,"box":{"x":70,"y":825,"width":53,"height":11}},{"id":"a95edaec-4e7d-4c23-97a7-dd0097ba871f","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":37,"box":{"x":102,"y":847,"width":774,"height":11}},{"id":"c0cf3e0e-186a-4257-a9be-5865425fa837","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity or fund of","page_number":37,"box":{"x":69,"y":862,"width":790,"height":12}},{"id":"07cc80f7-01af-41e7-a9e6-dc93c4d1d053","block_type":"box","text":"funds), each of which may be subject to a different fee arrangement, is based on a methodology agreed to by the","page_number":37,"box":{"x":68,"y":877,"width":809,"height":12}},{"id":"15802f1e-777d-4d3a-9aa9-df8cc0a5f870","block_type":"box","text":"Fund and BIM.","page_number":37,"box":{"x":70,"y":893,"width":100,"height":9}},{"id":"37b2bd29-0723-4763-af01-a2ec0ff64ce4","block_type":"box","text":"I-26","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"57a19c8f-bec5-4fc3-9315-9c8dcac8abf3","block_type":"box","text":"NM1026U-5982643-37/241","page_number":37,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"52555d61-c68c-4f6d-9a52-c4bf9485d8fa","block_type":"box","text":"Pursuant to the current securities lending agreement: (i) if the Fund were to engage in securities lending, the","page_number":38,"box":{"x":102,"y":45,"width":774,"height":11}},{"id":"4b603174-b5fe-4971-b533-84c5256a6185","block_type":"box","text":"Fund retains 82% of securities lending income (which excludes collateral investment fees); and (ii) this amount can","page_number":38,"box":{"x":70,"y":60,"width":818,"height":11}},{"id":"a7b4cdcf-b335-4375-9dd4-25090f567f7d","block_type":"box","text":"never be less than 70% of the sum of securities lending income plus collateral investment fees.","page_number":38,"box":{"x":69,"y":75,"width":683,"height":11}},{"id":"758ff6a8-38a1-421a-b6fb-68bdbf246b9d","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":38,"box":{"x":102,"y":98,"width":753,"height":11}},{"id":"5563429e-b1cb-48bc-92cf-7b6887e37e65","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":38,"box":{"x":69,"y":113,"width":778,"height":11}},{"id":"df612455-cf26-461c-b20a-376e5a514a3f","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":38,"box":{"x":70,"y":128,"width":817,"height":11}},{"id":"ce085bec-e090-4ae5-8af4-97e1af4b0bd5","block_type":"box","text":"lending income as follows: (i) if the Fund were to engage in securities lending, 85% of securities lending income","page_number":38,"box":{"x":70,"y":143,"width":794,"height":11}},{"id":"1ab77301-8c6a-4b6e-9077-48fe4b971edb","block_type":"box","text":"(which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities","page_number":38,"box":{"x":69,"y":158,"width":832,"height":11}},{"id":"73e1e815-4ae1-4fd7-8674-c21a8b1e8f0b","block_type":"box","text":"lending income plus collateral investment fees.","page_number":38,"box":{"x":70,"y":173,"width":334,"height":11}},{"id":"00b9e4a8-6bd3-44a6-abad-1c44967292e7","block_type":"box","text":"Prior to January 1, 2025, the Fund was subject to a different securities lending fee arrangement.","page_number":38,"box":{"x":102,"y":196,"width":690,"height":11}},{"id":"99e51b5c-b5c7-480e-bc97-fdb9e224b701","block_type":"box","text":"The Fund had no income and fees/compensation related to its securities lending activities during its most recent","page_number":38,"box":{"x":101,"y":218,"width":807,"height":12}},{"id":"d6de0108-0b49-473e-a7fd-14fcc028767c","block_type":"box","text":"fiscal year ended December 31, 2025.","page_number":38,"box":{"x":68,"y":234,"width":276,"height":11}},{"id":"f3fcb7a8-5adb-4fc0-b70d-c7dcf9e33788","block_type":"box","text":"VIII. Additional Information","page_number":38,"box":{"x":68,"y":264,"width":195,"height":9}},{"id":"60c74165-77c0-43be-81a3-2d84ce1d6c07","block_type":"box","text":"The Fund was incorporated under Maryland law on July 1, 1988 as a closed-end investment company. On","page_number":38,"box":{"x":101,"y":287,"width":749,"height":11}},{"id":"49e0441a-99a0-4397-bf64-bab2f6ff59dd","block_type":"box","text":"October 25, 1991, the shareholders of the Fund voted to conver t the Fund to an open-end investment company. The","page_number":38,"box":{"x":69,"y":302,"width":829,"height":11}},{"id":"400789d6-36cc-4825-9c51-5a145bb499f9","block_type":"box","text":"Fund was conver ted to an open-end investment company on November 15, 1991 and commenced operations as","page_number":38,"box":{"x":70,"y":317,"width":801,"height":11}},{"id":"ea1689cb-a0ae-487c-9648-6a2a35fc67be","block_type":"box","text":"such on November 18, 1991. Effective September 29, 2006, the Fund changed its name from Merrill Lynch World","page_number":38,"box":{"x":69,"y":332,"width":814,"height":11}},{"id":"3ca30c90-e755-4088-9a96-8a20d8f72f23","block_type":"box","text":"Income Fund, Inc. to BlackRock World Income Fund, Inc., and effective September 1, 2015, it changed its name from","page_number":38,"box":{"x":70,"y":347,"width":835,"height":11}},{"id":"2932f073-916e-4975-b787-e67c7b949acd","block_type":"box","text":"BlackRock World Income Fund, Inc. to BlackRock Strategic Global Bond Fund, Inc. The Fund has authorized capital of","page_number":38,"box":{"x":70,"y":362,"width":830,"height":11}},{"id":"80d7bad3-9964-48ed-8add-c3f9c36c0c82","block_type":"box","text":"6,000,000,000 shares of Common Stock, par value $0.10 per share, divided into four classes, designated","page_number":38,"box":{"x":69,"y":377,"width":765,"height":12}},{"id":"1abb28ef-7620-4301-89b6-da817b56bc18","block_type":"box","text":"Investor A, Investor C, Institutional and Class K Common Stock. Each of Investor A, Investor C, Institutional and Class","page_number":38,"box":{"x":70,"y":392,"width":838,"height":11}},{"id":"dee9dfaa-f773-403a-80a5-f35471da0732","block_type":"box","text":"K Common Stock have 1,000,000,000 authorized shares. The remainder of the authorized capital stock of the Fund","page_number":38,"box":{"x":70,"y":407,"width":827,"height":11}},{"id":"f7ad3b1c-e99f-4943-8839-282cd9be7824","block_type":"box","text":"is not designated or classified as to any class or series. Each share class represents an interest in the same assets","page_number":38,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"50771a5e-7ac7-4ee4-a3ea-f0766ed0bb3c","block_type":"box","text":"of the Fund and is identical in all respects except that the Investor A and Investor C Shares bear cer tain expenses","page_number":38,"box":{"x":69,"y":438,"width":814,"height":11}},{"id":"5ae2b8f7-c09f-4527-aad4-4de5b229a91d","block_type":"box","text":"relating to the distribution of such shares and the service fee and have exclusive voting rights with respect to matters","page_number":38,"box":{"x":69,"y":453,"width":839,"height":11}},{"id":"bbe9827c-94e8-4642-ba6b-6495b1e24d52","block_type":"box","text":"relating to such service and/or distribution expenditures (except that Investor C shareholders may vote upon material","page_number":38,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"0048a2c1-c171-4940-b3bb-6d5c617eda1c","block_type":"box","text":"changes to expenses charged under the Investor A distribution plan). The Board of Directors of the Fund may classify","page_number":38,"box":{"x":69,"y":483,"width":834,"height":11}},{"id":"40d67f5c-fdeb-4d1d-ae3e-47379b5a5b56","block_type":"box","text":"and reclassify the shares of the Fund into additional classes of Common Stock at a future date. Prior to","page_number":38,"box":{"x":69,"y":498,"width":739,"height":11}},{"id":"367ae3b7-fab0-4308-8fad-13686071ae8d","block_type":"box","text":"April 14, 2003, Investor A Shares were designated Class D and Institutional Shares were designated Class A.","page_number":38,"box":{"x":68,"y":513,"width":783,"height":12}},{"id":"f1a4ebe2-20cb-4532-b70a-ff38f9cfb440","block_type":"box","text":"Effective as of the close of business on June 23, 2015, all of the issued and outstanding Investor B Shares of the","page_number":38,"box":{"x":70,"y":528,"width":815,"height":12}},{"id":"ea65206e-98ac-436b-a8de-3019d80c2465","block_type":"box","text":"Fund were conver ted into Investor A Shares of the Fund. Effective on the close of business of February 24, 2020, all","page_number":38,"box":{"x":70,"y":543,"width":832,"height":12}},{"id":"2adce4a2-1182-4f74-ad7d-6af072dfcdb3","block_type":"box","text":"of the issued and outstanding Investor C1 Shares of the Fund conver ted into Investor A Shares of the Fund.","page_number":38,"box":{"x":69,"y":559,"width":767,"height":11}},{"id":"40f69366-f630-4803-9393-57b4f8251a07","block_type":"box","text":"Counsel.","page_number":38,"box":{"x":101,"y":581,"width":62,"height":9}},{"id":"5afb6e34-faf3-4767-b1c6-8b99cc2b6f58","block_type":"box","text":"Willkie Farr & Gallagher LLP, 787 Seventh Avenue, New York, New York 10019-6099, serves as the","page_number":38,"box":{"x":169,"y":581,"width":706,"height":12}},{"id":"7fa5bef4-4142-456d-a655-293b9e46fbae","block_type":"box","text":"Fund’s counsel.","page_number":38,"box":{"x":70,"y":597,"width":110,"height":8}},{"id":"5b240723-5c52-486f-949e-8389b4c07806","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":38,"box":{"x":102,"y":619,"width":352,"height":11}},{"id":"9e718133-d553-4811-abf2-a3eb682c65b2","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":38,"box":{"x":461,"y":619,"width":412,"height":11}},{"id":"664e0fa6-4283-466b-8e71-17d5957b76a0","block_type":"box","text":"Street, Boston, MA 02110, serves as the Fund’s independent registered public accounting firm.","page_number":38,"box":{"x":69,"y":634,"width":685,"height":12}},{"id":"e1b8c49e-839d-49f5-aa0f-3a9ce0d84fbf","block_type":"box","text":"Principal Shareholders","page_number":38,"box":{"x":69,"y":665,"width":162,"height":11}},{"id":"a0ae7d7a-2b39-4c21-a62d-f793e0754776","block_type":"box","text":"To the knowledge of the Fund, the following entities owned of record or beneficially 5% or more of a class of the","page_number":38,"box":{"x":101,"y":687,"width":795,"height":11}},{"id":"814f1523-b598-47e1-89c3-f8a0f3ac91f4","block_type":"box","text":"Fund’s shares as of April 1, 2026:","page_number":38,"box":{"x":70,"y":702,"width":243,"height":11}},{"id":"0d57f0a8-0cb6-4213-999c-215317af1d22","block_type":"box","text":"Name Address Percentage Class","page_number":38,"box":{"x":69,"y":731,"width":786,"height":8}},{"id":"8a3f5e08-5994-41b0-b2ea-0a8146d32f1e","block_type":"box","text":"EMPOWER TRUST 8515 E ORCHARD ROAD 2T2","page_number":38,"box":{"x":70,"y":748,"width":550,"height":9}},{"id":"34347f5e-4de0-45fe-909f-65358ba51ae7","block_type":"box","text":"GREENWOOD VILLAGE, CO 80111","page_number":38,"box":{"x":396,"y":763,"width":242,"height":11}},{"id":"5047f4a6-8965-407f-9397-f79323eb8405","block_type":"box","text":"29.67% Investor A Shares","page_number":38,"box":{"x":680,"y":748,"width":222,"height":9}},{"id":"54eb696d-4b1d-4e39-8353-bd9baa491603","block_type":"box","text":"MERRILL LYNCH PIERCE FENNER 4800 EAST DEERLAKE DRIVE","page_number":38,"box":{"x":70,"y":786,"width":551,"height":9}},{"id":"daf03631-b830-47a2-94dc-b8134e80e5b6","block_type":"box","text":"3RD FLR","page_number":38,"box":{"x":486,"y":801,"width":61,"height":9}},{"id":"3c7a4984-b57e-4083-8c7e-81fd4805b1e9","block_type":"box","text":"JACKSONVILLE, FL 32246-6484","page_number":38,"box":{"x":403,"y":816,"width":227,"height":11}},{"id":"5533be3f-cd86-4982-99b8-e4609b28a2b3","block_type":"box","text":"15.67% Investor A Shares","page_number":38,"box":{"x":681,"y":786,"width":221,"height":9}},{"id":"1d5b01a9-b5f6-45e8-9bd3-1d775087921c","block_type":"box","text":"NATIONAL FINANCIAL SERVICES LLC 499 WASHINGTON BLVD, 5","page_number":38,"box":{"x":70,"y":839,"width":513,"height":10}},{"id":"7ac382a1-f0a1-41c8-912a-db23f02cf71d","block_type":"box","text":"th","page_number":38,"box":{"x":584,"y":839,"width":6,"height":5}},{"id":"8114cc3e-0ea9-487b-9ce4-1ba1e2527dd0","block_type":"box","text":"FLOOR","page_number":38,"box":{"x":597,"y":839,"width":46,"height":9}},{"id":"d3071595-c817-49f3-bd5e-99c9e5e983bb","block_type":"box","text":"JERSEY CITY, NJ 07310-2010","page_number":38,"box":{"x":410,"y":854,"width":212,"height":11}},{"id":"82c2dc55-f438-4dbf-b389-ed561ee62e46","block_type":"box","text":"10.31% Investor A Shares","page_number":38,"box":{"x":681,"y":839,"width":221,"height":9}},{"id":"28826956-1531-4ec9-9ddc-a3382deb853b","block_type":"box","text":"CHARLES SCHWAB & CO., INC 101 MONTGOMERY ST","page_number":38,"box":{"x":69,"y":877,"width":529,"height":10}},{"id":"3499209f-81cd-498b-95ed-905f7e43f131","block_type":"box","text":"SAN FRANCISCO, CA 94104-4122","page_number":38,"box":{"x":395,"y":892,"width":242,"height":10}},{"id":"505d100e-1911-4807-8d45-4c70b0db7b49","block_type":"box","text":"10.07% Investor A Shares","page_number":38,"box":{"x":681,"y":877,"width":221,"height":9}},{"id":"b6dce793-11aa-47ff-bba5-d705ab0a4568","block_type":"box","text":"I-27","page_number":38,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"4fbc8033-3e63-4224-b2ac-4b75e819a17d","block_type":"box","text":"NM1026U-5982643-38/241","page_number":38,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"8b1df08c-d7a2-4fb5-bbfe-947f518455ea","block_type":"box","text":"Name Address Percentage Class","page_number":39,"box":{"x":69,"y":49,"width":786,"height":9}},{"id":"8274336b-5a1a-4002-8567-11138057e151","block_type":"box","text":"EDWARD D. JONES AND CO 12555 MANCHESTER ROAD","page_number":39,"box":{"x":70,"y":67,"width":546,"height":9}},{"id":"750715bb-f81e-4e3d-bc43-4ebefaa388ba","block_type":"box","text":"ST LOUIS MO 63131-3710","page_number":39,"box":{"x":421,"y":82,"width":191,"height":9}},{"id":"db2d5374-08fa-41d8-ab34-0040807c96fd","block_type":"box","text":"9.72% Investor A Shares","page_number":39,"box":{"x":685,"y":67,"width":217,"height":9}},{"id":"4b899143-b2e9-4f26-8e00-3341d6510cc3","block_type":"box","text":"AMERICAN ENTERPRISE INVESTMENT","page_number":39,"box":{"x":68,"y":105,"width":269,"height":8}},{"id":"2a450b73-4f55-47d7-88d9-7704c65bf7db","block_type":"box","text":"SVC","page_number":39,"box":{"x":69,"y":120,"width":28,"height":9}},{"id":"70a4690d-3ee7-4ff4-9d6c-f8817c150ff4","block_type":"box","text":"707 2ND AVENUE SOUTH","page_number":39,"box":{"x":427,"y":105,"width":179,"height":8}},{"id":"1a0c3b19-3e24-4816-a779-d3cad282fe49","block_type":"box","text":"MINNEAPOLIS, MN 55402-2405","page_number":39,"box":{"x":403,"y":120,"width":228,"height":10}},{"id":"5aa9232c-1cc8-4ed9-94d5-6dfcbea4e87a","block_type":"box","text":"32.24% Investor C Shares","page_number":39,"box":{"x":680,"y":105,"width":223,"height":8}},{"id":"835c87fb-7ad8-4ea5-b732-6b7c2b83e96b","block_type":"box","text":"PERSHING LLC 1 PERSHING PLAZA","page_number":39,"box":{"x":69,"y":142,"width":517,"height":9}},{"id":"f04ef04a-ba66-49d3-9e7d-fdbbad8dd07e","block_type":"box","text":"JERSEY CITY, NJ 07399-0001","page_number":39,"box":{"x":410,"y":158,"width":212,"height":10}},{"id":"27543196-bbac-4fb2-b5b3-a4de3264a596","block_type":"box","text":"17.85% Investor C Shares","page_number":39,"box":{"x":681,"y":142,"width":222,"height":9}},{"id":"30635b7a-a310-43f3-8580-33caa4bed658","block_type":"box","text":"WELLS FARGO CLEARING SERVICES 2801 MARKET STREET","page_number":39,"box":{"x":68,"y":180,"width":530,"height":9}},{"id":"7a61ff5b-ae9a-459d-855d-4ee5d9c77aea","block_type":"box","text":"ST. LOUIS, MO 63103","page_number":39,"box":{"x":438,"y":195,"width":157,"height":11}},{"id":"e6cf9c3e-30bf-4cf7-b0d7-6282a6c578fd","block_type":"box","text":"12.73% Investor C Shares","page_number":39,"box":{"x":681,"y":180,"width":222,"height":9}},{"id":"fca3f529-9516-4fc5-8b33-25c7abbc2bf5","block_type":"box","text":"LPL FINANCIAL 4707 EXECUTIVE DR","page_number":39,"box":{"x":70,"y":218,"width":520,"height":9}},{"id":"5baf4293-d298-435a-bf33-7a7acf8c879e","block_type":"box","text":"SAN DIEGO, CA 92121-3091","page_number":39,"box":{"x":414,"y":233,"width":205,"height":10}},{"id":"6499b113-7085-4383-b6ea-ff8f4ee6bd93","block_type":"box","text":"10.07% Investor C Shares","page_number":39,"box":{"x":681,"y":218,"width":222,"height":9}},{"id":"1802e9ec-be30-412a-8248-da9d9d2cddee","block_type":"box","text":"MORGAN STANLEY SMITH BARNEY LLC 1 NEW YORK PLAZA FL 12","page_number":39,"box":{"x":70,"y":256,"width":539,"height":9}},{"id":"70710221-feee-46f9-abcd-2f8f26c339fe","block_type":"box","text":"NEW YORK NY 10004-1901","page_number":39,"box":{"x":418,"y":271,"width":198,"height":9}},{"id":"8b224429-e5f2-43e2-883a-e7d7503693a0","block_type":"box","text":"7.78% Investor C Shares","page_number":39,"box":{"x":685,"y":256,"width":218,"height":9}},{"id":"16d52ce9-86b2-498a-8fcd-7c563be6d1f0","block_type":"box","text":"NATIONAL FINANCIAL SERVICES LLC 499 WASHINGTON BLVD, 5","page_number":39,"box":{"x":70,"y":294,"width":513,"height":10}},{"id":"834f1b1d-d0bc-465b-8633-a25675db5541","block_type":"box","text":"th","page_number":39,"box":{"x":584,"y":294,"width":6,"height":4}},{"id":"949d26e6-804d-4ac6-88ec-b12946098dc0","block_type":"box","text":"FLOOR","page_number":39,"box":{"x":597,"y":294,"width":46,"height":8}},{"id":"3f3a85bd-adf1-4cc8-8951-3ddc049a62f5","block_type":"box","text":"JERSEY CITY, NJ 07310-2010","page_number":39,"box":{"x":410,"y":309,"width":212,"height":10}},{"id":"c4e2a750-df0f-4a12-b2a3-8c175a3541f7","block_type":"box","text":"5.63% Investor C Shares","page_number":39,"box":{"x":685,"y":294,"width":218,"height":8}},{"id":"6daefd58-8a82-4ded-b4a1-0a77d3664252","block_type":"box","text":"EMPOWER TRUST 8515 E ORCHARD ROAD 2T2","page_number":39,"box":{"x":70,"y":331,"width":550,"height":9}},{"id":"664c925d-b756-48b3-b1dc-017043d07e01","block_type":"box","text":"GREENWOOD VILLAGE, CO 80111","page_number":39,"box":{"x":396,"y":346,"width":242,"height":11}},{"id":"e105e26e-b19d-413c-b15f-d138391c0bf6","block_type":"box","text":"14.33% Class K Shares","page_number":39,"box":{"x":681,"y":331,"width":213,"height":9}},{"id":"1f9e1c06-a96f-49ec-b9a3-03c969fa9d49","block_type":"box","text":"NATIONAL FINANCIAL SERVICES LLC 499 WASHINGTON BLVD, 5","page_number":39,"box":{"x":70,"y":369,"width":513,"height":11}},{"id":"92c1b124-24d7-4354-bea4-b18bb6ee60da","block_type":"box","text":"th","page_number":39,"box":{"x":584,"y":370,"width":6,"height":4}},{"id":"2b2dadca-4fc5-48a4-b814-41607c7e474b","block_type":"box","text":"FLOOR","page_number":39,"box":{"x":597,"y":369,"width":46,"height":9}},{"id":"aeced910-4733-4d41-b703-b95f5abceda8","block_type":"box","text":"JERSEY CITY, NJ 07310-2010","page_number":39,"box":{"x":410,"y":384,"width":212,"height":11}},{"id":"6209605a-c763-488e-bf39-df47dc76e869","block_type":"box","text":"10.53% Class K Shares","page_number":39,"box":{"x":681,"y":369,"width":213,"height":9}},{"id":"56161375-f72c-4fb1-adef-9d7f74fde0d8","block_type":"box","text":"EDWARD D. JONES AND CO 12555 MANCHESTER ROAD","page_number":39,"box":{"x":70,"y":407,"width":546,"height":9}},{"id":"3dae5096-d5a5-4803-a7a1-642dd61bf9cf","block_type":"box","text":"ST LOUIS MO 63131-3710","page_number":39,"box":{"x":421,"y":422,"width":191,"height":9}},{"id":"2d20e06d-1418-4fcc-9a23-eb50f6eae25b","block_type":"box","text":"10.12% Class K Shares","page_number":39,"box":{"x":681,"y":407,"width":213,"height":9}},{"id":"2a443d2a-08fd-4850-a5ee-f0a49f80444f","block_type":"box","text":"FIRST STATE TRUST COMPANY 2 RIGHTER PARKWAY","page_number":39,"box":{"x":70,"y":445,"width":521,"height":9}},{"id":"2c0164ea-f0a6-4da9-9eb0-fc258aafa7db","block_type":"box","text":"WILMINGTON, DE 19803","page_number":39,"box":{"x":428,"y":460,"width":177,"height":10}},{"id":"608f6461-37b5-4bed-a49d-7e36430cbfc4","block_type":"box","text":"9.70% Class K Shares","page_number":39,"box":{"x":685,"y":445,"width":209,"height":9}},{"id":"d8e093d8-e0c9-4648-aec1-cc834434b349","block_type":"box","text":"MATRIX TRUST COMPANY P O BOX 52129","page_number":39,"box":{"x":70,"y":483,"width":502,"height":8}},{"id":"21e944fd-233a-4c85-92e7-467e79b945a1","block_type":"box","text":"PHOENIX, AZ 85072-2129","page_number":39,"box":{"x":424,"y":498,"width":186,"height":10}},{"id":"61ae9b01-b82e-474a-98ee-83d2f2c28b4b","block_type":"box","text":"7.96% Class K Shares","page_number":39,"box":{"x":685,"y":483,"width":209,"height":8}},{"id":"09cc99db-0d2c-41d6-a572-5afddef29cf2","block_type":"box","text":"DCGT AS TTEE AND/OR CUST 711 HIGH STREET","page_number":39,"box":{"x":70,"y":520,"width":512,"height":11}},{"id":"a5c361bd-f025-46cf-87dc-f90880ec7d69","block_type":"box","text":"DES MOINES, IA 50392","page_number":39,"box":{"x":433,"y":535,"width":168,"height":11}},{"id":"c279891a-60a6-4f3e-946e-08d2808da412","block_type":"box","text":"7.39% Class K Shares","page_number":39,"box":{"x":685,"y":520,"width":209,"height":9}},{"id":"62938e2d-d86b-410c-9fac-29a24f6457fd","block_type":"box","text":"MERRILL LYNCH PIERCE FENNER 4800 EAST DEERLAKE DRIVE","page_number":39,"box":{"x":70,"y":558,"width":551,"height":9}},{"id":"2f410bd8-06f8-4d9d-a148-0d1b926e9dfa","block_type":"box","text":"3RD FLR","page_number":39,"box":{"x":486,"y":573,"width":61,"height":9}},{"id":"f41f9556-f4a6-4248-a7bb-7c989f297664","block_type":"box","text":"JACKSONVILLE, FL 32246-6484","page_number":39,"box":{"x":403,"y":588,"width":227,"height":11}},{"id":"dbf9519c-03b5-4e0a-91ac-7576c0eff7e1","block_type":"box","text":"5.57% Class K Shares","page_number":39,"box":{"x":685,"y":558,"width":209,"height":9}},{"id":"24c8da8c-cd5b-45c9-9bff-ed6d0fa35f12","block_type":"box","text":"CHARLES SCHWAB & CO., INC 101 MONTGOMERY ST","page_number":39,"box":{"x":69,"y":611,"width":529,"height":10}},{"id":"0a71dcc8-21af-41e3-ba2f-30dba1960ed3","block_type":"box","text":"SAN FRANCISCO, CA 94104-4122","page_number":39,"box":{"x":395,"y":626,"width":242,"height":11}},{"id":"a073a226-697e-42fc-8371-a7aff58d214e","block_type":"box","text":"5.45% Class K Shares","page_number":39,"box":{"x":685,"y":611,"width":209,"height":9}},{"id":"13c75292-1018-4d45-a0ab-b2dd27db2431","block_type":"box","text":"NATIONAL FINANCIAL SERVICES LLC 499 WASHINGTON BLVD, 5","page_number":39,"box":{"x":70,"y":649,"width":513,"height":10}},{"id":"64cf915b-7627-4907-98c7-a3b0585b681b","block_type":"box","text":"th","page_number":39,"box":{"x":584,"y":649,"width":6,"height":5}},{"id":"b456c7ef-f294-4362-99ab-0ccc6acc00d3","block_type":"box","text":"FLOOR","page_number":39,"box":{"x":597,"y":649,"width":46,"height":9}},{"id":"cb291672-5757-4512-a693-6b19b46ed6b3","block_type":"box","text":"JERSEY CITY, NJ 07310-2010","page_number":39,"box":{"x":410,"y":664,"width":212,"height":10}},{"id":"8274aea4-e7df-4e3a-b8bc-b854f6debebb","block_type":"box","text":"32.91% Institutional Shares","page_number":39,"box":{"x":680,"y":649,"width":229,"height":9}},{"id":"394b4853-0e81-43f3-aded-3d8433bdd8ed","block_type":"box","text":"CHARLES SCHWAB & CO., INC 101 MONTGOMERY ST","page_number":39,"box":{"x":69,"y":687,"width":529,"height":10}},{"id":"7c8e92f8-9f4f-4dcc-ae7d-43b588ab6882","block_type":"box","text":"SAN FRANCISCO, CA 94104-4122","page_number":39,"box":{"x":395,"y":702,"width":242,"height":10}},{"id":"27920638-6f40-4258-89b6-d62f324d88d4","block_type":"box","text":"17.50% Institutional Shares","page_number":39,"box":{"x":681,"y":687,"width":228,"height":9}},{"id":"d61fb93c-9b44-4ed0-8b4d-c2c364da7992","block_type":"box","text":"AMERICAN ENTERPRISE INVESTMENT","page_number":39,"box":{"x":68,"y":724,"width":269,"height":9}},{"id":"9ab1303a-f129-42df-a24e-1a0f557deb1b","block_type":"box","text":"SVC","page_number":39,"box":{"x":69,"y":740,"width":28,"height":8}},{"id":"d90a4f18-7dfa-4163-a318-7b2bd42b89b8","block_type":"box","text":"707 2ND AVENUE SOUTH","page_number":39,"box":{"x":427,"y":724,"width":179,"height":9}},{"id":"5be6da3c-f5c9-4cbb-b94d-454c71060a0d","block_type":"box","text":"MINNEAPOLIS, MN 55402-2405","page_number":39,"box":{"x":403,"y":740,"width":228,"height":10}},{"id":"58bb82a9-97ca-4d11-8af5-0ee4270956a7","block_type":"box","text":"11.54% Institutional Shares","page_number":39,"box":{"x":681,"y":724,"width":228,"height":9}},{"id":"a2813079-a259-4a6d-9c9a-8f259f7318b5","block_type":"box","text":"MMATCO LLP P O BOX 483 1110 N MAIN STREET","page_number":39,"box":{"x":70,"y":785,"width":574,"height":9}},{"id":"356cbab0-fe0a-4b72-89dc-95396f2df6c9","block_type":"box","text":"GOSHEN, IN 46527","page_number":39,"box":{"x":447,"y":800,"width":139,"height":10}},{"id":"ea342a35-7825-4d6e-bea3-b021425b2b18","block_type":"box","text":"7.44% Institutional Shares","page_number":39,"box":{"x":685,"y":785,"width":224,"height":9}},{"id":"d3025ba7-8f08-46f8-9106-7b2a9381b77a","block_type":"box","text":"MERRILL LYNCH PIERCE FENNER 4800 EAST DEERLAKE DRIVE","page_number":39,"box":{"x":70,"y":823,"width":551,"height":9}},{"id":"c785b338-469d-4697-a61a-2b87c39e9ec2","block_type":"box","text":"3RD FLR","page_number":39,"box":{"x":486,"y":838,"width":61,"height":9}},{"id":"7d83c3c9-70a8-4da5-a0c3-267e3380c8cb","block_type":"box","text":"JACKSONVILLE, FL 32246-6484","page_number":39,"box":{"x":403,"y":853,"width":227,"height":10}},{"id":"deef56f1-27d3-4190-996c-a1fd29480e0d","block_type":"box","text":"6.40% Institutional Shares","page_number":39,"box":{"x":685,"y":823,"width":224,"height":9}},{"id":"5f7c156d-2b4c-4cff-a88c-0ac440620597","block_type":"box","text":"LPL FINANCIAL 4707 EXECUTIVE DR","page_number":39,"box":{"x":70,"y":876,"width":520,"height":8}},{"id":"2ca51fa3-2f81-46ab-9cd5-4e055e5c59e1","block_type":"box","text":"SAN DIEGO, CA 92121-3091","page_number":39,"box":{"x":414,"y":891,"width":205,"height":10}},{"id":"3303a2f9-5f82-4b2c-a01a-fd79faa0943c","block_type":"box","text":"5.65% Institutional Shares","page_number":39,"box":{"x":685,"y":876,"width":224,"height":8}},{"id":"ad393464-6c74-41a4-80c2-6ce822a6eed6","block_type":"box","text":"I-28","page_number":39,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"6021e783-fbed-4d69-b54a-41e17a77d79d","block_type":"box","text":"NM1026U-5982643-39/241","page_number":39,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"b405c8f3-cf66-4cab-add7-598a0f055f9f","block_type":"box","text":"Shareholder Approvals.","page_number":40,"box":{"x":101,"y":45,"width":167,"height":11}},{"id":"7fc8861a-8841-410e-9435-70393fcafd26","block_type":"box","text":"As used in this SAI and in the Prospectuses, a “majority of the outstanding shares” of a","page_number":40,"box":{"x":274,"y":45,"width":628,"height":11}},{"id":"39cebd20-909d-42d4-bcd8-58811df7b40c","block_type":"box","text":"class, series or Fund means, with respect to the approval of an investment advisory agreement, a distribution plan or","page_number":40,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"835c2932-5aaa-4b7c-866c-82b0f7e7d6b1","block_type":"box","text":"a change in a fundamental investment policy, the lesser of (1) 67% of the shares of the par ticular class, series or","page_number":40,"box":{"x":69,"y":75,"width":811,"height":11}},{"id":"a3e091ee-e4e6-4a35-945f-b1074ac96090","block_type":"box","text":"Fund represented at a meeting at which the holders of more than 50% of the outstanding shares of such class,","page_number":40,"box":{"x":70,"y":90,"width":792,"height":11}},{"id":"9dde54b7-10fa-40a2-a943-81de032068aa","block_type":"box","text":"series or Fund are present in person or by proxy, or (2) more than 50% of the outstanding shares of such class,","page_number":40,"box":{"x":69,"y":105,"width":794,"height":11}},{"id":"9b5a78fd-8643-4a3d-b1c1-c9fcc03b021a","block_type":"box","text":"series or Fund.","page_number":40,"box":{"x":69,"y":120,"width":104,"height":9}},{"id":"799f106b-953a-429c-9402-010e25d5faa3","block_type":"box","text":"IX. Financial Statements","page_number":40,"box":{"x":69,"y":151,"width":179,"height":8}},{"id":"8df12021-4e97-42ef-b894-503e24f61257","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":40,"box":{"x":101,"y":173,"width":726,"height":11}},{"id":"702a5571-a4ab-418f-9a93-41a9ae797452","block_type":"box","text":"Statements and Additional Information for the fiscal year ended December 31, 2025, as filed with the SEC on Form","page_number":40,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"1424c6af-e507-4168-b8d6-b7bd5b4a7e52","block_type":"box","text":"N-CSR (the “2025 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the","page_number":40,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"da152e4a-6c40-483c-aa55-f539c448e85a","block_type":"box","text":"2025 Annual Financial Statements are incorporated by reference herein. The 2025 Annual Financial Statements have","page_number":40,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"66fb2707-2121-4b98-a416-1e6bf5b3cf26","block_type":"box","text":"been audited by Deloitte & Touche LLP. The repor t of Deloitte & Touche LLP is incorporated herein by reference. Such","page_number":40,"box":{"x":69,"y":234,"width":835,"height":11}},{"id":"cac35bfb-9512-4e59-921c-26cd03887af8","block_type":"box","text":"2025 Annual Financial Statements have been incorporated herein in reliance upon the repor t of such firm given their","page_number":40,"box":{"x":69,"y":249,"width":833,"height":11}},{"id":"3802b324-441f-4260-8c64-2414128828c2","block_type":"box","text":"authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":40,"box":{"x":69,"y":264,"width":815,"height":11}},{"id":"57526fe5-bac6-4d2f-9842-f232a1a8dbec","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":40,"box":{"x":69,"y":279,"width":785,"height":11}},{"id":"c7cce2d8-d091-4b4b-ba48-870c8383b581","block_type":"box","text":"obtained at no charge by telephoning the Distributor at the telephone number appearing on the front page of this SAI.","page_number":40,"box":{"x":69,"y":294,"width":836,"height":11}},{"id":"03e0ec34-b260-4737-a06e-dc1bf4241f83","block_type":"box","text":"I-29","page_number":40,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"15e4be13-989c-4e8b-b1eb-5fba8ac2c291","block_type":"box","text":"NM1026U-5982643-40/241","page_number":40,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"eaf681b7-5be3-447c-984c-ecd8b1fd4462","block_type":"box","text":"PART II","page_number":41,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"3004e01c-74b0-440a-afcc-ce7966ed3247","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":41,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"c82cc542-531b-4146-bbdf-faf68d85f356","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":41,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"0e26bb56-2e42-465d-baad-28e1b8bfe148","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":41,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"fac1ee0a-7762-47be-8966-57066fdaf035","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":41,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"4cb2cd76-4885-4131-8e83-0805bd76a942","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":41,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"75b93f80-280f-4584-94c9-b5140a090724","block_type":"box","text":"stock and shares of beneficial interest are referred to herein as “shares” or “Common Stock,” holders of shares of","page_number":41,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"632b5a65-59e4-4eb4-b0f3-509f4ab9d54d","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":41,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"413e5c92-132c-4560-80f8-7b0b29287621","block_type":"box","text":"“Directors,” the boards of trustees/directors of each Fund are referred to as the “Board of Directors” or the “Board,”","page_number":41,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"d25598e2-989e-4b81-a006-9e9431cb58ff","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":41,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"1a32f2ba-bb6c-4a40-a0eb-4f3b50f869f0","block_type":"box","text":"of each Fund and is referred to herein as the “Manager” or “BlackRock,” and the investment advisory agreement or","page_number":41,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"5f92ea22-b752-4fb9-83e4-1b254e328298","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":41,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"05c7cd86-aca2-42e9-8b57-b3dc3e43c6ef","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":41,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"13a3a9d7-fca6-4210-b59e-52987a15737c","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":41,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"23262362-735e-4ea6-8722-393538e66aac","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":41,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"1a6d8e72-8c1a-485d-804c-c9584a490fbe","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":41,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"a98c205c-513e-45a3-9408-62b8b6bb714a","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":41,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"be1751f1-97a9-4fb9-b3e9-ca8096e0c8a8","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":41,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"0f5633f0-3ef3-4d6b-beb7-922646cbf3ea","block_type":"box","text":"LLC”), a mutual fund that has the same objective and strategies as the Feeder Fund. All investments are generally","page_number":41,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"98b58231-f351-4dcf-b599-ad6ffdc3533e","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":41,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"8e17a719-a6d2-4703-8a11-7b4fc03ebbc6","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":41,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"83ce8a65-f05b-47eb-a63b-3d8101f69a30","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":41,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"7a0d547a-2992-422f-876d-4d0be5df03e9","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":41,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"cc9ca85a-9b34-4e71-b9d0-095d2b528d8e","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":41,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"62cd9d02-c418-4dd5-b7bf-aac133e7fbf5","block_type":"box","text":"par ticular Fund.","page_number":41,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"28a9039d-f045-4b5c-956c-e1dab84297f1","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":41,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"e42c6be9-be0c-4386-8a6f-21a55f624fb1","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":41,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"12f9565a-17ab-43c6-9d4b-b5c702a2a11d","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":41,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"491872ec-b906-4f4b-9365-b298c17ff1e2","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":41,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"25daa124-2f96-40f2-a244-7fc0d2337459","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":41,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"5028ec22-a6ff-4aad-a4c3-4591903a9395","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":41,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"c9d81325-6786-498b-8ddd-9370ac501665","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":41,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"015cae11-4e14-4c3b-a5e4-93026b26a805","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":41,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"b3968775-3ded-45a6-bdf9-c59ab87f9034","block_type":"box","text":"each investment strategy (each, a “Covered Fund”). Information that does not apply to a Covered Fund does not form","page_number":41,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"7e7f8f47-f852-4d6c-8976-9d70455befbb","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":41,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"4fbe06bf-3b9e-4a84-a78b-f49627c26ddc","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":41,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"0b8954d3-b83f-4ee9-8e94-331cb11790f3","block_type":"box","text":"Asset-Backed Securities.","page_number":41,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"a29df7ab-70c5-4cf9-b76b-a024cf818f22","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":41,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"8fec9e68-2f46-4ffc-b22b-18184aca605e","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":41,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"eda129f7-c6b5-44fd-b28e-b6c538e210c0","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":41,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"dc6b1a4a-8514-469a-871e-6cefffc761b7","block_type":"box","text":"credit card receivables) are passed through to a Fund. The value of asset-backed securities, like that of traditional","page_number":41,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"93bf520a-3dba-493f-8abc-128b5b6c4c9a","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":41,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"b109498d-9c53-478a-aad9-20aa2d6ada95","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":41,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"92a4bc90-7b8b-48d1-9340-e80e4b015285","block_type":"box","text":"price paid by a Fund for its asset-backed securities, the yield the Fund expects to receive from such securities and","page_number":41,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"f7e9067e-03b2-475e-b40e-89562c4504e1","block_type":"box","text":"the average life of the securities are based on a number of factors, including the anticipated rate of prepayment of","page_number":41,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"cbd6abe7-867c-43a9-8613-9cf62227356d","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":41,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"ab4d9bea-ea18-4104-8dc3-4f2a657d7197","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":41,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"6823996b-a675-427d-9748-388048d5e584","block_type":"box","text":"Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely receive a rate of","page_number":41,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"2856eb3b-f070-4b4f-9a9c-2ab43c54dc41","block_type":"box","text":"interest that is lower than the rate on the security that was prepaid. To the extent that a Fund purchases asset","page_number":41,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"7639683e-1d57-4997-b270-ad61b7456e22","block_type":"box","text":"backed securities at a premium, prepayments may result in a loss to the extent of the premium paid. If a Fund buys","page_number":41,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"e3ce50fc-507f-4ddb-b5af-c04a89389c68","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":41,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"fcbcebe3-2c43-4cf0-8684-154de41caad0","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":41,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"804e168e-23e7-44b6-9a20-45881427f691","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":41,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"0e5d197e-01d1-4818-941f-596e412b01e4","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":41,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"0ce5a3d9-016e-4d80-b4bd-7372f54d12ec","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":41,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"44ffa3db-22af-443a-849f-6f97b341ada7","block_type":"box","text":"II-1","page_number":41,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"2aa504a4-2275-483b-a171-0a428e87be63","block_type":"box","text":"NM1026U-5982643-41/241","page_number":41,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"89ebbfec-8c55-45f6-9ee8-6e94ece3fcdf","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":42,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"412bbe4f-9bc4-4c7e-9362-2b1bff57496d","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":42,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"ac670799-4e29-4ea5-9eb3-a7e5b6f27200","block_type":"box","text":"interest rates decline, the value of an asset-backed security with prepayment features may not increase as much as","page_number":42,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"255f6f11-6643-4503-a34b-c5de27884d2e","block_type":"box","text":"that of other fixed-income securities, and, as noted above, changes in market rates of interest may accelerate or","page_number":42,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"62976315-ebd7-4d32-9481-b1e3e3049c37","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":42,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"85729811-f078-4fd8-a4d8-1bb5b716109f","block_type":"box","text":"Asset-Based Securities.","page_number":42,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"7e1d5745-cfa8-4ee7-9ffa-7699b17f305e","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":42,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"38a39202-f484-49e9-9ecd-1064dbff5252","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":42,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"0fce79ef-b971-4065-8c4c-9b81e012ee0c","block_type":"box","text":"asset such as gold bullion. These securities are referred to as “asset-based securities.” A Fund will purchase only","page_number":42,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"b31f051b-9518-43ac-8a8c-f287f3e271ef","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":42,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"cb726989-93c4-4ac6-9ad4-021bdbf87b67","block_type":"box","text":"investment grade (for example, AAA, AA, A or BBB by S&P Global Ratings (“S&P”) or Fitch Ratings (“Fitch”), or Baa by","page_number":42,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"32e14fc4-1b8a-4aa5-9721-386aff48bfff","block_type":"box","text":"Moody’s Investors Service, Inc. (“Moody’s”) or commercial paper rated A-1 by S&P or Prime-1 by Moody’s) or by","page_number":42,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"5f410633-a41f-4b04-882e-d02e4f501f61","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":42,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"1cc617b0-9535-4959-815c-8aea4fabc00a","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":42,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"d5ea8189-f3b4-4797-9b93-6b46f52c6df0","block_type":"box","text":"likely to be downgraded than securities rated in the three highest rating categories. If an asset-based security is","page_number":42,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"1314d641-53de-4dd1-a257-6d0126baf615","block_type":"box","text":"backed by a bank letter of credit or other similar facility, the Manager may take such backing into account in","page_number":42,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"10375d02-8aa8-4cce-998e-a6098f0ea069","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":42,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"e48bb10e-c293-4135-b32e-ffc2dd05d01b","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":42,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"0ee09bc8-021f-4efb-a0f9-68e34d73116e","block_type":"box","text":"the two price movements. Asset-based securities may not be secured by a security interest in or claim on the","page_number":42,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"73924c51-9f1b-4001-b937-25a310981e32","block_type":"box","text":"underlying natural resource asset. The asset-based securities in which a Fund may invest may bear interest or pay","page_number":42,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"d92d20dc-54ee-4240-9d92-c7f8c8f96ab0","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":42,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"8824323a-302f-4b95-a30d-921cc2847559","block_type":"box","text":"at maturity in cash at the stated principal amount or, at the option of the holder, directly in a stated amount of the","page_number":42,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"3b412e4e-9691-4f16-9ce2-34a415a356ca","block_type":"box","text":"asset to which it is related. In such instance, because no Fund presently intends to invest directly in natural resource","page_number":42,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"2ca21a0e-a0cb-4527-89fc-baf48fa707ed","block_type":"box","text":"assets, a Fund would sell the asset-based security in the secondary market, to the extent one exists, prior to","page_number":42,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"9c13f5cc-9d9e-4a57-be1d-17cbf6a652fe","block_type":"box","text":"maturity if the value of the stated amount of the asset exceeds the stated principal amount and thereby realize the","page_number":42,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"4b549660-5f98-4a14-8fc1-2b650e9150f8","block_type":"box","text":"appreciation in the underlying asset.","page_number":42,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"aed9e9d0-2e56-4d20-99ec-fb005f11c578","block_type":"box","text":"Precious Metal-Related Securities.","page_number":42,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"acfb83bb-62fc-48e7-89fa-9a9e112419a1","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":42,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"5c724aaa-0f09-445f-aa0c-23714adcaa57","block_type":"box","text":"explore for, extract, process or deal in precious metals (e.g., gold, silver and platinum), and in asset-based securities","page_number":42,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"fc4e68b3-0121-46d8-a042-c5d91adbbdf6","block_type":"box","text":"indexed to the value of such metals. Such securities may be purchased when they are believed to be attractively","page_number":42,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"15252869-240f-4f01-90c8-9c7426eb6b5f","block_type":"box","text":"priced in relation to the value of a company’s precious metal-related assets or when the values of precious metals","page_number":42,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"25347964-fd28-4174-8da5-2402b1c57a75","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":42,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"cfce44b5-1bbd-456c-9120-9ab2593c0f1f","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":42,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"cf7976dc-4e96-4d80-8c2a-0faab60bdb85","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":42,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"632a9ba3-0eb4-434a-95ff-0f8ea1b1f832","block_type":"box","text":"metal prices during such periods. In addition, the instability of precious metal prices may result in volatile earnings of","page_number":42,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"e848f873-3b34-4548-9846-a2f1bb4e007b","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":42,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"cefbae6a-bf41-4f0f-b005-7d0d3cb5d7b2","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":42,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"0b023119-05d9-4d5a-93fd-3ce453ebd96c","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":42,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"e2de860f-c70d-473b-9aab-294efb8b292e","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":42,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"2d5cd608-0687-4cef-b2e8-9e81180c205d","block_type":"box","text":"South African gold production.","page_number":42,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"7df22b86-3c76-48b7-b66c-2748ffa68f63","block_type":"box","text":"Borrowing and Leverage.","page_number":42,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"85937e83-66ca-4bc1-9051-27c08bbfed14","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":42,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"92e354b1-482c-4ee3-81f9-7563b2ff41a0","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":42,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"85cc3c2c-490d-4ed8-bf96-c4b080ab75a6","block_type":"box","text":"securities at any time when borrowings exceed 5% of their total assets, except (a) to honor prior commitments or","page_number":42,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"cd4e7f5b-13fa-480d-aac0-c63e800ae231","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":42,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"f11b9e79-b9b9-40ca-b17c-db566cfe9b51","block_type":"box","text":"other securities transactions.","page_number":42,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"fd44bb31-d4d8-4e09-8474-62939328f028","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":42,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"331ba68c-2185-4a02-bafe-ec98e880e56d","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":42,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"2c770bb8-ea65-4eaa-a04d-82f346521b5a","block_type":"box","text":"leveraging increases the Fund’s exposure to capital risk, and borrowed funds are subject to interest costs that will","page_number":42,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"2d4444c7-e952-4b54-8c1c-284236acefe2","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":42,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"0384c453-eec0-4e24-b643-20c6c3afd2d2","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":42,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"58df38c0-0ef4-4522-be16-44726e53ccb9","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":42,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"ae617c81-bbb9-42b0-9ad5-90b40d387338","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":42,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"c81bfee9-2ceb-4fe0-97c3-8d52f49df334","block_type":"box","text":"for the Fund that can exceed the income from the assets purchased with the borrowings. To the extent the income or","page_number":42,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"9bb06648-3262-4547-bd59-e4a2a5ec76c3","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":42,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"b0e1ecfd-4942-4aa8-80c3-addc13a0e9a6","block_type":"box","text":"pay on the borrowings, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income","page_number":42,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"23d2ef1a-95bb-409c-a5cd-946fe2e201b7","block_type":"box","text":"or capital appreciation from the securities purchased with such borrowed funds is not sufficient to cover the cost of","page_number":42,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"b26b0ca9-af01-44a3-a09a-d638c8cc3401","block_type":"box","text":"borrowing, the return to the Fund will be less than if leverage had not been used and, therefore, the amount available","page_number":42,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"92852239-2262-4cc1-9caf-b979d28851f4","block_type":"box","text":"for distribution to shareholders as dividends will be reduced. In the latter case, the Manager in its best judgment","page_number":42,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"fa455c77-2ca6-4ede-be23-2ccc1e1d5fc9","block_type":"box","text":"II-2","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"37c5f377-a458-4f47-b357-6a458f00642a","block_type":"box","text":"NM1026U-5982643-42/241","page_number":42,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"d0c73321-108e-4a23-b93b-1adf60ebc14d","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":43,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"07e24edf-6bcd-4f37-be4b-7ac54e75ba38","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":43,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"cbc1e55b-ce9b-4cfe-ab77-b8b5cf467ab5","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":43,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"8f65766e-4c21-4c02-b03f-928e1aa981ec","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":43,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"15e29eb3-1c7f-4d4d-8c31-b56ad6acf187","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":43,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"607f0742-64a5-447a-b5f4-2504fa33e062","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":43,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"2708b45e-09f1-4b75-8aef-f518f189afa4","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":43,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"3f1227e0-05a6-4aae-918b-d1cf1bb9cadd","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":43,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"04beca58-f734-4bb5-aa99-c1214eb67df9","block_type":"box","text":"Each Fund may at times borrow from affiliates of the Manager, provided that the terms of such borrowings are","page_number":43,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"db533245-1ee2-4874-8261-55d15a9af2e0","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":43,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"e2ad2df0-28fb-4566-88d2-c84073ee127f","block_type":"box","text":"Cash Management.","page_number":43,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"d7025b57-0473-4274-b0ef-94e9d90d2450","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":43,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"6bd340b6-f56b-41ed-b829-b6f239d6e265","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":43,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"b117f1a5-a326-4c26-9fa3-cd8f4563ad09","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":43,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"8a77c11e-835c-4de0-80d9-d9c14724e754","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":43,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"e8a977fb-2cf5-4dd5-b735-e5d031fb95a0","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":43,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"3710c214-43f2-42c9-ad2a-323b6c89ddc1","block_type":"box","text":"Securities”); (ii) other fixed-income securities rated Aa or higher by Moody’s or AA or higher by S&P or, if unrated, of","page_number":43,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"ee4f3a60-8042-4eae-96e7-edc5335cc8f1","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":43,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"81169a19-6373-4662-b327-ae5265883cf5","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":43,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"f80e6f49-ebe3-410e-9b8d-404158fc0eae","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":43,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"2078f1e6-89e4-4bce-99eb-63449950b82b","block_type":"box","text":"have outstanding debt rated Aa or higher by Moody’s or AA or higher by S&P or outstanding commercial paper, bank","page_number":43,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"5cd7a7af-059e-4fd4-8860-ebae9abfca59","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":43,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"b20893e2-2258-4911-87f6-aaa24b38acd8","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":43,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"73a8a463-e8fb-4027-bfa2-8f86710998a4","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":43,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"c14addd7-cfc3-44f1-a56d-5155414ad07c","block_type":"box","text":"Collateralized Debt Obligations.","page_number":43,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"6b298320-1eda-42f1-9ecd-e43e758efd4a","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":43,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"ae3965d9-8ff5-4512-94eb-fb4ac1ae3e92","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":43,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"0a9fe006-d472-4073-ae3f-41bcd63d1883","block_type":"box","text":"structured securities. CDOs are types of asset-backed securities. A CBO is ordinarily issued by a trust or other","page_number":43,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"c0d74e95-fd4c-4752-86c0-24edd7c20795","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":43,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"3618a42b-24e9-4e01-a664-6ed45589a7e8","block_type":"box","text":"include high risk, below investment grade securities) held by such issuer. A CLO is ordinarily issued by a trust or","page_number":43,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"7d0cb088-fb25-42dd-b7e1-abe9ff926c45","block_type":"box","text":"other SPE and is typically collateralized by a pool of loans, which may include, among others, domestic and non-U.S.","page_number":43,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"a6d109ac-d87c-49e0-ad9e-8e36d4b0a1fa","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":43,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"98139726-aaf9-44e6-9afd-6bbf8030df35","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":43,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"3d823f3c-4bf5-4ea7-a998-b575512480bd","block_type":"box","text":"the United States may not be deemed to be foreign securities if the CLO is collateralized by a pool of loans, a","page_number":43,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"d1b1603b-6534-49a9-a9e6-333a263fbe4b","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":43,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"afa15413-256f-4497-9d06-298df215fe41","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":43,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"d12183b4-72ac-4ec8-be6d-471dfa674f65","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":43,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"871fb3f1-fa00-4675-8bef-7e7be2e8a98a","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":43,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"a8f0b80e-ff9f-46ac-959b-f6978606e7c5","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":43,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"3334b052-71c8-4002-949d-31641525cfa4","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":43,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"2a08fbf4-8280-49c4-9952-14a26909fa49","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":43,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"14ac181a-960d-4bbe-84ac-8e416a86bfb2","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":43,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"e6217593-8d2f-4722-aec7-5f1a68ad9167","block_type":"box","text":"bonds or loans in the SPE and serves to protect the other, more senior tranches from default (though such protection","page_number":43,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"3562baa7-9c91-4d93-8144-08dd3093acec","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":43,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"bafa70fc-1825-4272-9c06-6af6d10f163f","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":43,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"b28863d1-26df-49dd-8e0b-1b3416bbce38","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":43,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"88c6e4e7-f928-4d8f-926d-22ff7cae5b6d","block_type":"box","text":"of the underlying collateral by rating agencies, forced liquidation of the collateral pool due to a failure of coverage","page_number":43,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"2eaae128-728c-4c76-9556-7058407429d2","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":43,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"5c649a66-ca44-4ff9-89b7-78f35ce0c803","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":43,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"2e856c86-be4c-400e-ae36-9ffdbeb09ace","block_type":"box","text":"of a CDO may be paid in kind or deferred and capitalized (paid in the form of obligations of the same type rather than","page_number":43,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"9fdb460c-3a48-43dc-a474-e80888ff19cb","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":43,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"9cff68c5-7b3e-4d93-ba58-e0012c426954","block_type":"box","text":"The risks of an investment in a CDO depend largely on the type of the collateral securities and the class of the","page_number":43,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"f3848302-a4cd-4973-b43f-114045728286","block_type":"box","text":"CDO in which a Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus are not","page_number":43,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"02309676-c5e1-4a3e-8c20-1c8af52f360c","block_type":"box","text":"registered under the securities laws. However, an active dealer market may exist for CDOs, allowing a CDO to qualify","page_number":43,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"6b14024d-87e2-4ce9-bb9f-f97c3e441bde","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":43,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"9f74046f-eb25-49a0-bc12-7b264bc4868e","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":43,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"edd1252d-8237-4acf-b9bb-d3ce921e6e73","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":43,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"1eb4517f-82b8-436f-a8c0-0caab38ff78f","block_type":"box","text":"II-3","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"026fb1b6-33fe-492d-910d-6e86ef310371","block_type":"box","text":"NM1026U-5982643-43/241","page_number":43,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"585db6f1-15f9-4d23-9c28-5b9c8caa62fc","block_type":"box","text":"risk that the collateral may default or decline in value or be downgraded, if rated by a nationally recognized statistical","page_number":44,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"4463f1f3-bf5b-43e9-9c1d-390b333a2e16","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":44,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"f48aaca8-8006-41dc-b905-e35eab43829a","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":44,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"be8c627b-b48a-46d9-aa18-5a14b67b0c19","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":44,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"a435d0b0-3095-42be-b92b-465c6089602f","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":44,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"35a516f6-fc8e-4c40-b6ad-b1cde9bb6dc0","block_type":"box","text":"(vii) the risk of forced “fire sale” liquidation due to technical defaults such as coverage test failures; and (viii) the","page_number":44,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"85b268e3-9bb6-4d43-b90d-c03bde30c235","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":44,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"5e4c1c6e-8968-411d-b183-145bd79528d4","block_type":"box","text":"Commercial Paper.","page_number":44,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"4e799f33-e5f2-49fa-95f3-811f703e5f38","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":44,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"6a3f3124-c545-4df1-a438-ecd8215561f9","block_type":"box","text":"Fund includes “Section 4(a)(2) paper,” a term that includes debt obligations issued in reliance on the “private","page_number":44,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"1ccbdf94-4508-42a0-b085-2877dce88dcf","block_type":"box","text":"placement” exemption from registration afforded by Section 4(a)(2) of the Securities Act. Section 4(a)(2) paper is","page_number":44,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"07e585d7-d216-411e-80f8-61a652d0ea96","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":44,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"3bb2a58a-0992-48ea-8855-20e00a8a5513","block_type":"box","text":"investors such as the Fund through or with the assistance of investment dealers who make a market in the Section","page_number":44,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"2c45865f-be5c-464b-8c15-388e9f3a6ea8","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":44,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"2d5dcb4a-0179-43ca-a062-fd537fdbb335","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":44,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"d0e27dcb-c482-4b32-ad4d-99cd901e2334","block_type":"box","text":"time of purchase) “A-1” by S&P or “Prime-1” by Moody’s or when deemed advisable by a Fund’s Manager or sub","page_number":44,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"4cce9526-8938-4684-bd72-bdbf0bd82427","block_type":"box","text":"adviser, “high quality” issues rated “A-2”, “Prime-2” or “F-2” by S&P, Moody’s or Fitch, respectively.","page_number":44,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"85b3c548-d59a-41cd-a33d-27c6e85d6658","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":44,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"3d8a8a1f-a83e-4ef3-9219-898a7ad1d79e","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":44,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"6182183a-e659-4368-8078-1ef9c0edb77b","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":44,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"399f513a-a505-42ef-b5e6-fa10267b7807","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":44,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"acbb1d0a-bb3d-42df-922a-ac1e1d8d65c1","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":44,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"e89d0d2b-c12c-4951-b314-07a619ec8641","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":44,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"b787a261-05a5-4bb2-b693-d7a2a37bc69a","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":44,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"05867b15-bc5c-40d1-afeb-e6673e1564d3","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":44,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"379ea271-a698-469a-925e-47f9d7b2995b","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":44,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"f7476846-46aa-42e4-b6cd-c0618651c5ab","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":44,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"387c23da-22ad-4e36-b12d-68a0d00de1f4","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":44,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"bd13862c-e2c7-4217-b6a8-1989964dfff9","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":44,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"60f75e31-0062-4f32-9ff6-cc84d58e9d42","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":44,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"2022f9f3-360b-4267-be5f-a3d94c731ae4","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":44,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"c37c7392-41c9-494f-8d66-c1bee19b5f68","block_type":"box","text":"variable.","page_number":44,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"2da8d148-ae90-4383-848d-6608382d42dc","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":44,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"a6669f63-1a92-4d21-94ec-cbaab6dfbda2","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":44,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"268e96b7-fe69-48ca-93f0-b27d6de37979","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":44,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"81c0eed8-5208-4176-8d63-07b4eb1ac1c3","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":44,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"7a785169-be0c-4669-a54c-30bfcc63ba16","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":44,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"f5d503b1-d473-4e65-9e52-79509b47e712","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":44,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"eb6e1201-9b86-45ac-9282-d06a41f04d54","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":44,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"9d503733-fa00-4361-b923-09555d14d185","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":44,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"4079b9df-1f16-4204-afa2-64238c91720d","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":44,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"352f0b08-ba87-4843-a4d9-746a41436355","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":44,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"5757ed64-d97a-4b87-b85c-41771b9c8138","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":44,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"880cd53a-c968-42da-9660-3d8c141068fe","block_type":"box","text":"securities. Over the long term, the returns on the Fund’s investments are expected to exhibit low or negative","page_number":44,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"a14eb1fa-5673-4bff-8d5f-7f33e0351ac7","block_type":"box","text":"correlation with stocks and bonds.","page_number":44,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"8a31b1fd-12da-4c67-ba2c-97da05feb792","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":44,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"9fbe5443-d9ec-49ce-a138-c604b04e8412","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":44,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"a53f4fae-8f6a-459c-b443-2999d55b6154","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":44,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"855ab744-b537-4d53-9e0a-66f7f3c6a15c","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":44,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"4699b894-f8d9-4a93-b837-56fbe49356f7","block_type":"box","text":"be predominantly a security if (a) the issuer of the hybrid instrument receives payment in full of the purchase price of","page_number":44,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"67482b5c-81b0-436f-8dc5-1a54ea24ef7e","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":44,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"720d48b1-b42d-4a35-9cda-80988288fa55","block_type":"box","text":"holder of the hybrid instrument is not required to make any payment to the issuer in addition to the purchase price","page_number":44,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"04108afd-9d7c-4001-9ce0-3fbe0aa80ebe","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":44,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"a396b0d3-cccf-4e67-9ef8-929cbd4fae21","block_type":"box","text":"instrument or at maturity; (c) the issuer of the hybrid instrument is not subject by the terms of the instrument to","page_number":44,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"c6637f8f-0f58-4347-961d-f88d3cccd6c5","block_type":"box","text":"mark-to-market margining requirements; and (d) the hybrid instrument is not marketed as a contract of sale of a","page_number":44,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"3d397b6d-500a-470e-b0f9-0f3e297e63bc","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":44,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"ce4f3abd-700e-4990-ae47-7ccb1657deed","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":44,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"f5ba2322-1d55-4043-87c7-e6d028455dfc","block_type":"box","text":"principal protected hybrid instrument means that the issuer will pay, at a minimum, the par value of the note at","page_number":44,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"105f7704-ef4c-4794-abf3-00c5a9a15cd1","block_type":"box","text":"II-4","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"6d796eb8-3f87-4772-8eb8-a56062dde93f","block_type":"box","text":"NM1026U-5982643-44/241","page_number":44,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"42b63997-384a-4a3c-8584-883ad309fb5b","block_type":"box","text":"maturity. Therefore, if the commodity value to which the hybrid instrument is linked declines over the life of the note,","page_number":45,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"38ec4c17-b059-4105-9b44-5767ee2047f0","block_type":"box","text":"the Fund will receive at maturity the face or stated value of the note. With a principal protected hybrid instrument, the","page_number":45,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"b0952790-4b55-4519-b4d9-5e27ca2c5da7","block_type":"box","text":"Fund will receive at maturity the greater of the par value of the note or the increase in its value based on the","page_number":45,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"d0b574df-d77b-4a8f-aaab-ffbf46527f8a","block_type":"box","text":"underlying commodity or index. This protection is, in effect, an option whose value is subject to the volatility and price","page_number":45,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"638bc470-7c7d-4199-ad17-3a3a189563b5","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":45,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"63578dba-3eb1-4aaa-b89f-5126da81f708","block_type":"box","text":"cost of the protection. In addition, the protection feature depends upon the ability of the issuer to meet its obligation","page_number":45,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"0d796b96-6c01-4bbd-adbc-66b6b7f89527","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":45,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"27f2ba81-8de3-4c35-a838-cd226fae93c1","block_type":"box","text":"the Fund will receive at maturity of the hybrid instrument either the stated par value of the hybrid instrument, or","page_number":45,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"28d789b8-c7c9-4f2c-a7e4-b54f9ed4a360","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":45,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"b508224c-3a5f-48ba-879d-c04f061b2642","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":45,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"bd1d246b-8160-40af-b587-8a6b8c8322d1","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":45,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"1205777a-3129-4222-96c5-11c9776d6535","block_type":"box","text":"variable to which the hybrid instrument is linked declines in value during the term of the hybrid instrument. However,","page_number":45,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"fce96161-33e4-493b-874e-f4bc6d73d73f","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":45,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"c4d1961b-33f6-49ea-a9a5-e1dbbf04c3e9","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":45,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"e7a60273-0a0c-48ff-b1da-a77a27ad157d","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":45,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"569ad4cd-5b83-4971-85c2-6e65a2a320de","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":45,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"6b24e21c-859b-4360-91c8-f4c6686bdca2","block_type":"box","text":"economic variable may have declined sufficiently in value such that some or all of the face value of the hybrid","page_number":45,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"11b6644a-d1ef-452d-8217-a03c1ed1b7ee","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":45,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"9f7b4227-2b51-4b74-a164-8193129f78aa","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":45,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"7b76fb38-7967-4e89-a2c2-340c2b9b2e3e","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":45,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"4c0010f6-a043-4562-ad3b-5bb7152a7660","block_type":"box","text":"index or other economic variable over the term of the note, the cost of the note, and any other economic factors that","page_number":45,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"70372404-0ccd-43d5-acd9-595197a8680b","block_type":"box","text":"the Manager believes are relevant.","page_number":45,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"8e47706c-a3c9-4671-aab7-65aa28c2e44d","block_type":"box","text":"Limitations on Leverage.","page_number":45,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"cd8ebb51-61f2-4193-abfd-878ba6ea6cad","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":45,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"9f365d4a-71de-413f-8cdc-712f4c655a9c","block_type":"box","text":"avoid being subject to undue leverage risk, a Fund will seek to limit the amount of economic leverage it has under any","page_number":45,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"740cbd5d-5592-4f95-ace3-e12f4a4aa52e","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":45,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"09d587b3-ecb3-408a-b53a-91e72ee692c3","block_type":"box","text":"instrument if, at the time of purchase: (i) that instrument’s “leverage ratio” exceeds 300% of the price increase in","page_number":45,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"f6f62a17-3bcc-4d38-98b1-48867da43dff","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":45,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"12b6edb9-ca92-4cc5-b75a-9fd908040dfd","block_type":"box","text":"ratio” exceeds 150%, measured at the time of purchase. “Leverage ratio” is the expected increase in the value of a","page_number":45,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"1ba6c587-1e00-44f4-a914-925dfd316050","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":45,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"31142a3b-8f84-40b1-8f82-2d367212946e","block_type":"box","text":"other economic factor. In other words, for a hybrid instrument with a leverage factor of 150%, a 1% gain in the","page_number":45,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"1eb51ea6-a20f-4e10-b783-8f991dabde86","block_type":"box","text":"underlying economic variable would be expected to result in a 1.5% gain in value for the hybrid instrument.","page_number":45,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"efd5837c-1149-4e05-9faf-b1ed2dbc451a","block_type":"box","text":"Conversely, a hybrid instrument with a leverage factor of 150% would suffer a 1.5% loss if the underlying economic","page_number":45,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"39d5aa7a-b2ee-47fd-a0ce-bcd47af82491","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":45,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"f05fc1d7-8f0e-4a23-a4d4-b6d8e531b31c","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":45,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"d66118c6-0b68-4bd9-83d9-dcc00855da4f","block_type":"box","text":"contracts, their notional values. A Fund may at times or from time to time decide not to use leverage in its","page_number":45,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"62c306d6-7741-4bab-9514-cbeb3dde7034","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":45,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"f4abd994-713f-4960-9db5-0995c1c3f41e","block_type":"box","text":"Counterpar ty Risk.","page_number":45,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"423d069b-c578-4141-a1b4-99fd84ae1d3f","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":45,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"50b4cf02-c069-43e5-9a88-4c00ebd02fc3","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":45,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"0567fb22-d395-4ed4-92ae-55dbb49af03d","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":45,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"3064c876-5dae-40b4-8f1d-e24f6cd4363e","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (e.g.,","page_number":45,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"7f24939b-af69-492b-aa43-1dc8f7431b38","block_type":"box","text":"ratings of AAA or AA by S&P). Therefore, the risk is small that an exchange clearinghouse might be unable to meet its","page_number":45,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"b8d9760c-870f-4ea0-8067-f9fdb554c507","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":45,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"85d115c0-dc8c-4f42-aa61-c33c2a40a71e","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":45,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"19314561-c7e9-435e-876a-5cab872e4ac2","block_type":"box","text":"obligations under the structured note.","page_number":45,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"7c47556c-1852-4feb-82b2-628f8005536f","block_type":"box","text":"Convertible Securities.","page_number":45,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"101c20b6-ecde-4e47-9342-8a9892ee4357","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":45,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"46e1d566-e8e0-4849-af54-9cdb81ae6924","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":45,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"14045ffd-b557-469f-83f0-0a1ec1e2fe5a","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":45,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"962ef36e-03ed-471d-b94c-e1b4aae6b3af","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":45,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"630538a4-eedb-4e23-81f6-b970585bc545","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":45,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"77982751-0439-49ef-a1ad-caa8c8559e4f","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":45,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"c66ff0e3-6d4f-4c0b-9768-2c5eac6331e4","block_type":"box","text":"with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than","page_number":45,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"95812ae4-b2eb-4d53-84a0-f2d0e272af18","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":45,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"15d478ca-59d2-4bb3-bdaa-ec896a85724c","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":45,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"9f817db3-63bf-4f4c-a573-9cdce581d976","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":45,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"a94b36d3-8947-46d7-a67c-d23190c3a1b6","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":45,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"2ce2f862-2c1e-45fc-865d-5bf6a2f82247","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":45,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"89402b6f-6ff9-43b6-a1a3-a5dce603bb2b","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":45,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"2734fbb6-2ae0-48d1-90cf-f85c0705136d","block_type":"box","text":"II-5","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"9f7badea-3af7-4fea-a877-03bbbf7d2efa","block_type":"box","text":"NM1026U-5982643-45/241","page_number":45,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"e40ad676-8cbf-405e-8dbf-c39b69974bf6","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":46,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"7d23522e-7a59-432a-83cd-5ad15779d7db","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":46,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"b6fcf26b-a8cd-4720-97ab-28a4c5b27f14","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":46,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"3decbffc-9e34-4d75-9f6f-146adc21059d","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":46,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"a678267f-d8c3-42a6-8261-372aa9e7e7d9","block_type":"box","text":"in value relative to the underlying common stock due to their fixed-income nature. As a result of the conversion","page_number":46,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"0892e775-bdf6-4475-a1ff-2909a298374e","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":46,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"d61fa3b4-082b-4eff-9433-f851601d8da9","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":46,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"77a01996-3517-4218-b0ab-d05edefe1730","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":46,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"07feb454-1667-4f39-902f-6a9148392205","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":46,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"f1b966c7-ae91-4ec5-ad0e-7b4b159bee0c","block_type":"box","text":"things.","page_number":46,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"415a0089-52f1-446c-b7f6-7ae9d65625d7","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":46,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"fb10dd23-73de-465d-9cb9-b36bbb52d68f","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":46,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"d2dd1033-126a-42a3-b6c9-36d1f7038822","block_type":"box","text":"securities may be quoted in the currency of the country where the issuer is domiciled. As a result, fluctuations in the","page_number":46,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"0df6f1b4-f2fd-4a57-8d71-b7539747e3fe","block_type":"box","text":"exchange rate between the currency in which the debt security is denominated and the currency in which the share","page_number":46,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"c2a1ed8c-850f-4366-83cc-c38c9327af96","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":46,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"635fb956-3b3e-4195-a28b-4b832fc0be40","block_type":"box","text":"a currency different from that of the underlying equity securities, the conversion price may be based on a fixed","page_number":46,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"8de75e3c-4149-4380-a837-b48c1c9d1efe","block_type":"box","text":"exchange rate established at the time the security is issued, which may increase the effects of currency risk. As","page_number":46,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"c4949301-9f7d-4fac-8186-43d6bf803584","block_type":"box","text":"described below, a Fund is authorized to enter into foreign currency hedging transactions in which it may seek to","page_number":46,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"c991b947-1d41-47c1-91cb-577cb0582420","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":46,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"56d6a306-7d49-4629-bcf3-84696810fb15","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":46,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"51b82360-46f3-4dc5-8044-5916e79f76b5","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":46,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"01471ad1-95af-4d57-8875-e19cf5cfd72b","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (i.e., strictly on the basis of its yield) is","page_number":46,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"fd621ec2-03b9-4d89-b1cf-449d95e50b44","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":46,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"5f47f36d-422e-4bf4-a227-a4e7ebe23d2b","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":46,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"9b6a3d80-0bdc-4015-a7b9-de71cbe1045d","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":46,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"83bef6c5-3f2d-4324-b00c-e3f140514076","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":46,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"3a46b9d5-af1f-433a-89d8-f7b7e1d14709","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":46,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"dafa3ace-c844-4226-a1dc-c5dd55761777","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":46,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"93825faa-4560-4ad9-9bc0-6579bbf84051","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":46,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"29a3501f-1602-43ab-8b8b-0f359930fcfa","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":46,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"c91f34b9-071b-40fa-8670-3bce5d4d4458","block_type":"box","text":"over the conversion value to the extent investors place value on the right to acquire the underlying common stock","page_number":46,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"b933029a-bd11-4c97-b962-b9c1a8fa9b93","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":46,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"cba04c8d-068e-4b2d-ba07-9c4995a3e36a","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":46,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"afd3462f-af63-4719-b883-8c372fc07525","block_type":"box","text":"than the securities’ investment value.","page_number":46,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"3a2f7421-57ce-4675-b6d7-ebf8a10833d9","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":46,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"ff23dd73-c00c-4d22-9f8a-83469de99d38","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":46,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"f30e9d31-8776-49b7-b43c-4c84e41b8703","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":46,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"bcc455bb-26bf-49e3-93d8-17be3a05f103","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":46,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"09a037e8-2442-42c1-8667-8540bd6de53e","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":46,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"bdbb0779-2a1e-421a-834c-0a76f3b64292","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":46,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"e92760e9-c0cb-466e-b034-98e34c225f22","block_type":"box","text":"holder to cause the security to be redeemed by the issuer at a premium over the stated principal amount of the debt","page_number":46,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"e669e372-2289-4aa5-b490-309859ee7efe","block_type":"box","text":"security under cer tain circumstances.","page_number":46,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"2d9b2f8f-d28b-4e25-8f2c-bbcb0289de14","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":46,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"84d30571-4cd3-4637-8793-ff9250d82176","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":46,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"5aaa92f3-f3eb-42b7-b7c7-0db4a04ca96c","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":46,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"c135c7e6-80f0-4c7e-8152-53bb4dd4810a","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":46,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"6f0bf524-94fe-420e-a242-fa1bd791580f","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":46,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"e1db2a45-be2d-45ac-8bbe-955821142b35","block_type":"box","text":"public offering of its common stock prior to maturity and otherwise pays a cash amount to reflect any equity","page_number":46,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"176c694e-81a9-4ca6-ae19-e816f141158e","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":46,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"ed40bb7e-0254-4a69-aebf-616230a99ac1","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security, i.e., fixed-income (“fixed","page_number":46,"box":{"x":69,"y":823,"width":808,"height":11}},{"id":"3a350c79-00de-4526-ba0c-69f34eaa80f4","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":46,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"590b2280-0d4b-41c6-a551-3654b135c53f","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":46,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"5da6c7ea-ccb0-4db1-9f9c-8f43b58a0bc7","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":46,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"a130947d-2e3c-4fd7-b1af-d301f5a5e4ab","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":46,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"08af7934-1bc7-4dcc-84cd-dee515bbda82","block_type":"box","text":"II-6","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"74d7e3b5-b093-4b6b-afec-2a96e31ba6b0","block_type":"box","text":"NM1026U-5982643-46/241","page_number":46,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"8e9b2c9c-0256-4b62-983b-4be80e3d04b3","block_type":"box","text":"specified quantity of the underlying stocks within a specified period of time at a specified price or, in the case of a","page_number":47,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"17fff893-f6ff-4441-a06a-0e981f44c574","block_type":"box","text":"stock index option, the right to receive a cash payment based on the value of the underlying stock index.","page_number":47,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"1c67ac8f-2e16-4f21-8ac1-e991f2bee90e","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":47,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"0040a8ec-fdc4-437e-ab2f-86420fb08f62","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":47,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"d6f97d2f-5cae-4cd2-8717-09b1859bfb99","block_type":"box","text":"comprised of two or more separate securities, each with its own market value. Therefore, the total “market value” of","page_number":47,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"d1dbbbe8-fac7-4109-a014-7a073546b5f6","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":47,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"1337d647-b7c9-42f2-aa5f-865275184fa2","block_type":"box","text":"component.","page_number":47,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"fa8f5740-1edd-4939-8030-b9b460c84b61","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":47,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"badd3daa-6756-41fb-9c2e-f9d6ace4843f","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":47,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"d5795090-0f26-4b1d-bf85-1d2e34a8c21c","block_type":"box","text":"fixed-income instrument and an equity feature with respect to the stock of the issuer of the fixed-income instrument","page_number":47,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"57fc2663-e832-4077-a8bc-cdd57c0b871f","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":47,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"281a0b5e-4ff4-4dc8-95df-3f10b29c8b57","block_type":"box","text":"fixed-income instrument of an issuer with an equity feature with respect to the stock of a different issuer when the","page_number":47,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"5a9669b2-91a8-4cf4-9220-d4ebeff4712a","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":47,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"4894ded9-77de-43ed-8254-778f7a86ff8a","block_type":"box","text":"investments. For example, the Manager may combine an equity feature with respect to an issuer’s stock with a fixed","page_number":47,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"5af15715-6ff1-411e-ba3d-ba2a2c6e89ba","block_type":"box","text":"income security of a different issuer in the same industry to diversify the Fund’s credit exposure, or with a U.S.","page_number":47,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"3ed80e84-0ee7-49d9-83a1-0ead97d798b0","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":47,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"d4d2ac02-a9c3-4746-a904-7054013fefe8","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":47,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"fbbadff7-f8a5-4bb9-999d-27029b52920d","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":47,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"84482aba-b81d-400d-8786-18d0c9ea87f3","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":47,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"8c91ee29-27f6-46a7-957b-463b1f288109","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":47,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"d1a9e6ab-162f-4140-a02a-0aedf13ed938","block_type":"box","text":"favorable market conditions.","page_number":47,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"888f8ed1-4a26-4324-a7bc-a7a6b3cc56e1","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":47,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"c58b6274-ce5a-4052-a8fa-9a59a1e0dc5b","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":47,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"71679a02-3110-4050-b070-e4ae1e419ead","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":47,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"a6ed5b55-906d-4145-a916-8b1d044d113e","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":47,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"28ce69ad-e342-46aa-aef8-36905be8f9aa","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":47,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"475e0aca-b080-44b1-ba22-638836ec96ee","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":47,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"0097c0a6-d699-4c78-b6c0-f9dac3251e01","block_type":"box","text":"Corporate Loans.","page_number":47,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"6cd52a01-5420-4ed8-b0de-0f1b4958b9ca","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":47,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"bed48400-1648-4706-9df0-f03157862fd7","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":47,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"dd36083c-1ab8-496e-8728-7531b73817b7","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":47,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"bfc16290-1852-4e25-9959-31fb37c58f82","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":47,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"5bf88c0c-e416-4b0c-a611-8c71a8c3a3b8","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":47,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"46e96369-1046-4cee-87e0-66ca84830414","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":47,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"d2067075-26a5-42b2-bdef-b3996eb06348","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":47,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"57ba62bc-1959-4731-bce7-a6086452355f","block_type":"box","text":"only with the Lender, not with the borrower. The Fund will have the right to receive payments of principal, interest and","page_number":47,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"de5c4804-7bad-4483-a35a-6fa827eb61ab","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":47,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"b59c05f3-a221-4e1d-b5f3-2dd9d3e24655","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":47,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"05aab34f-ea12-4464-8633-e0a027836d95","block_type":"box","text":"enforce compliance by the borrower with the terms of the loan agreement relating to the Loans, nor any rights of set","page_number":47,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"d917a0c0-1647-4ad8-b9c7-7a03106c1866","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":47,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"de153399-95cd-4bfd-8497-a88e2789c8b9","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":47,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"f13766d8-142f-4ad2-9292-524f1c206bd8","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":47,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"6ce4f19f-0523-4fb3-8b2f-5e5ae18ecdd6","block_type":"box","text":"treated as a general creditor of the Lender and may not benefit from any set-off between the Lender and the","page_number":47,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"ef965136-7d3d-433b-a99b-9b45d9ba4a31","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":47,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"853b1599-0ec0-4419-8f0f-ed23d45de213","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":47,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"ef9895ad-0a1b-4c14-a9c5-c16c5b0a7961","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":47,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"3ee6e5a7-3eee-47ed-82fb-d51139d888e6","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":47,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"56b6db00-aceb-4963-adda-3e4be700a291","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":47,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"0de0934e-842b-4284-ad6b-eabd25ca221a","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":47,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"4cb63da8-6590-41df-bfd3-6f7348f41b6d","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":47,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"6f2b820c-1ba8-43a2-9664-8b99a037fb59","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":47,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"4e497056-70f0-492c-bec4-e18116f6367e","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":47,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"e513594d-f224-4fd8-b77d-ba7b94e2b07d","block_type":"box","text":"could be sold only to a limited number of institutional investors. The lack of a sufficiently liquid secondary market","page_number":47,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"d8edae21-397a-4a55-85e3-a7b19655d7fb","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":47,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"ab80aecf-e6ca-430b-9ce9-cbe41b09fa9a","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":47,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"8af4c45e-26f6-43ca-9a2f-c62c5bf82845","block_type":"box","text":"of the borrower.","page_number":47,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"17b85631-c4a2-46f9-839a-063abfcb396a","block_type":"box","text":"II-7","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"19ce15d5-d7d2-49a9-8a1d-1dd3cb504653","block_type":"box","text":"NM1026U-5982643-47/241","page_number":47,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"658f04fa-f43d-4415-84f8-13c717cdc0ae","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":48,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"6889d442-eee8-445c-8f0e-83b2341280c5","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":48,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"588a40e0-0016-4aa6-92a4-9a799e3d4134","block_type":"box","text":"Failure by the syndicate agent to fulfill its obligations may delay or adversely affect receipt of payment by the Fund.","page_number":48,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"5f465da4-fe9e-4cca-8019-74f404527530","block_type":"box","text":"The Loans in which the Fund may invest are subject to the risk of loss of principal and income. Although","page_number":48,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"1bf769d3-b5bf-4f30-bc69-69482a2bc36a","block_type":"box","text":"borrowers frequently provide collateral to secure repayment of these obligations they do not always do so. If they do","page_number":48,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"071f8da5-a481-4c30-a5ef-7590ba4234b8","block_type":"box","text":"provide collateral, the value of the collateral may not completely cover the borrower’s obligations at the time of a","page_number":48,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"3ce61a8b-1566-40df-903f-4d9a7d7c27b1","block_type":"box","text":"default. If a borrower files for protection from its creditors under the U.S. bankruptcy laws, these laws may limit a","page_number":48,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"bdc17139-24ce-47ef-9a11-e387b9412d53","block_type":"box","text":"Fund’s rights to its collateral. In addition, the value of collateral may erode during a bankruptcy case. In the event of","page_number":48,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"b0e11582-bd71-43f7-8ff7-2a48f1880d4e","block_type":"box","text":"a bankruptcy, the holder of a Loan may not recover its principal, may experience a long delay in recovering its","page_number":48,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"0c3043d4-f295-4e61-b649-4653084ee123","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":48,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"537810cb-d503-4d1d-ad17-1f79473fe702","block_type":"box","text":"Transactions in corporate loans may settle on a delayed basis. As a result, the proceeds from the sale of","page_number":48,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"2c815585-7add-4597-be63-04eae50b996a","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":48,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"094ba07a-44fa-46f5-bbb1-506d74484a15","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":48,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"acbf5a1f-dec9-48b3-9d24-f1af4f648ffa","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":48,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"553d064a-222f-496f-8158-7c03b413bf77","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":48,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"79d3bbba-8fd1-4734-a574-8b7a6bc43b01","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":48,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"0e647eba-0e91-4727-84ad-042fbd3c9e53","block_type":"box","text":"interests in Loans, such as the Funds, may not have the protection of the anti-fraud provisions of the federal","page_number":48,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"935bd190-a7f9-4f20-a040-0043a8910a88","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":48,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"f85ff2ff-7266-42ee-a1ba-ddec770f132c","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":48,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"07514e2b-c05d-4037-9cfd-29534ff71a1a","block_type":"box","text":"state law.","page_number":48,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"6f345a5e-772c-4751-979a-c838e94b8c30","block_type":"box","text":"Direct Lending. The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":48,"box":{"x":102,"y":377,"width":771,"height":12}},{"id":"6cd5d7f5-7eb2-4e5a-9cf4-6cab20a04a82","block_type":"box","text":"between the Fund and a borrower may not be administered by an underwriter or agent bank. The Fund may provide","page_number":48,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"855c5baa-aecf-44ba-b994-1afabcf35a45","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":48,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"7b6a62ef-41f2-4333-be73-317bb8540295","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":48,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"ea9930c4-4d8b-45f1-b543-362bc53d831f","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":48,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"01257835-c86c-4859-a7e1-020de7c3fc9a","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":48,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"f2816f74-2539-4c7b-9a9f-434f09b7e9e9","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":48,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"99b10eb9-c96d-4aea-aad7-8e76cb61c483","block_type":"box","text":"loans are substantially similar to those associated with investing in corporate loans. In making a direct loan, the Fund","page_number":48,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"0a44d54e-62b4-4334-976d-a3e940c5095e","block_type":"box","text":"is exposed to the risk that the borrower may default or become insolvent and, consequently, that the Fund will lose","page_number":48,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"8b49783b-1259-485b-a45c-68cd64be0448","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":48,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"8a902bd2-b52c-440d-a9a1-974e4145cc76","block_type":"box","text":"direct loans may be deemed illiquid. Direct loans are not publicly traded and may not have a secondary market. The","page_number":48,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"f7b86195-f813-45be-a52e-dfc34b6563dd","block_type":"box","text":"lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to dispose of a","page_number":48,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"3938a445-2d06-45fc-9ee1-67a7bbef9d4e","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":48,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"48284c7e-1b24-4639-affc-0913164134ce","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":48,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"cd4f1680-4e2d-4e39-bfef-311dba3222d1","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":48,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"3e283daa-80b4-435d-b647-1b20680d5c58","block_type":"box","text":"Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on","page_number":48,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"eee01d32-f539-41ac-be9b-c8aae6f00586","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":48,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"47599656-3d01-48a1-bd96-e01a9a841e52","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":48,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"9db5b12f-8e63-4324-bcd4-fa7da1431943","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":48,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"d6de858b-4ac1-4886-b132-cccf5386aa18","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":48,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"3fde07e7-002d-4207-9a65-5bc78a5c439c","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":48,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"70e8ef25-948f-4ba7-9293-265cbebfb649","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":48,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"4f817d31-a2be-43dd-b632-6918bbc9fdf3","block_type":"box","text":"Credit Linked Securities.","page_number":48,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"d0e1a18e-dd23-49b0-8687-b10b11c79dd0","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":48,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"e47dcdb9-19a5-416a-bd90-6dc8ef9ad0f2","block_type":"box","text":"securities, which are issued by a limited purpose trust or other vehicle that, in turn, invests in a derivative instrument","page_number":48,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"59fa3d53-0c8f-4ce9-9371-2719bb52375f","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":48,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"3ec5489f-df41-4431-bdd2-51daa9a94f86","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":48,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"12d7db69-6a5d-4d2c-99a9-fecb515c5fa1","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":48,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"425afb70-0709-41c6-b220-ee49006db98f","block_type":"box","text":"traditional income producing securities are not available.","page_number":48,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"ee28f9ea-c928-4917-88f7-227fcfd33c8a","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":48,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"d4008db8-e53a-427b-af92-9f8f61d9446f","block_type":"box","text":"income payments (in the form of distributions) and payment of principal at the end of the term of the security.","page_number":48,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"27a7375a-dd03-49b7-8b76-909fc2939388","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":48,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"987d60fe-6dd2-4d25-8858-91c52f9f3530","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":48,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"9511fcf6-78ce-4edd-88c7-64761417daa5","block_type":"box","text":"instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of","page_number":48,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"6c4c7683-e8a3-4035-9694-35c31d5e9ae2","block_type":"box","text":"II-8","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"7ad62234-c7c1-411e-8fdb-d9441e809f5a","block_type":"box","text":"NM1026U-5982643-48/241","page_number":48,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"736468bd-f634-4069-bcbc-f826d9d57dd3","block_type":"box","text":"payments over the term of the swap agreements provided that no event of default has occurred with respect to the","page_number":49,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"90a39dfb-f03b-4697-8764-4e35c76f1cb5","block_type":"box","text":"referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and","page_number":49,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"792b0d51-da44-4134-9d97-4b9f8b0c30b4","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":49,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"1ecbad74-89e0-4196-a03d-04ae44eaa0e0","block_type":"box","text":"obligation. This, in turn, would reduce the amount of income and principal that a Fund would receive. A Fund’s","page_number":49,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"46bf55f5-4a70-4ccb-af3f-801c0e2510ea","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":49,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"30fe5d4d-d674-4c65-837d-9423056576bf","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":49,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"bb976056-dde1-4e11-9ef5-582fff31c83a","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":49,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"60311477-3ebd-4d89-9ffb-0bb3108b1dfc","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":49,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"1431fb9d-a3b5-40ea-8333-fb6394d2e17e","block_type":"box","text":"investments.","page_number":49,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"741f51c0-92b2-4b11-9204-6c3da7f264e1","block_type":"box","text":"Debt Securities.","page_number":49,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"06acd715-7d0d-48b4-b8ca-5908b7f4b631","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":49,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"1d1ad7e3-9c2b-4008-81ba-8175b572f663","block_type":"box","text":"timely payments of principal and interest. The degree of credit risk depends on the issuer’s financial condition and on","page_number":49,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"a4a0364a-2482-4795-a966-6811d4eefe95","block_type":"box","text":"the terms of the debt securities. Changes in an issuer’s credit rating or the market’s perception of an issuer’s","page_number":49,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"32c42766-eea5-43dd-aa48-7ddd201ecbb4","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":49,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"7ab66e06-c577-48dc-ae35-12d6d18f1367","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":49,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"91b50151-65da-4bfa-ba79-4e9235d00b3b","block_type":"box","text":"All debt securities, however, are subject to interest rate risk. This is the risk that the value of the security may","page_number":49,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"6832a686-5f89-40ff-9dc1-b10a370ec5f3","block_type":"box","text":"fall when interest rates rise. If interest rates move sharply in a manner not anticipated by Fund management, a","page_number":49,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"edd01024-4c73-4540-8d5f-dbc0d8ff5e97","block_type":"box","text":"Fund’s investments in debt securities could be adversely affected and the Fund could lose money. In general, the","page_number":49,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"58aa7042-bd86-4cc8-850a-896ce3cd9f47","block_type":"box","text":"market price of debt securities with longer maturities will go up or down more in response to changes in interest","page_number":49,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"ba32c4e3-e2fc-4c09-a63d-0b1f17a4a1dc","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":49,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"ea905e9c-1546-4757-b865-c93388d3d929","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":49,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"35d5d154-17d6-4efa-b1b5-305159cd1b49","block_type":"box","text":"slower than expected principal payments. This may lock in a below-market interest rate and extend the duration of","page_number":49,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"279cfcca-ad93-40ed-8378-e6b8a25c717a","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":49,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"d25b2dc0-d4b9-4cca-b48e-24cadb605cbd","block_type":"box","text":"interest rates. As a result, in a period of rising interest rates, these securities may exhibit additional volatility and","page_number":49,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"8f405efe-cf13-4cf1-8b16-8ac8638a2fdd","block_type":"box","text":"lose value. This is known as extension risk.","page_number":49,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"9a3bc967-abb3-4c7d-b290-f3b62df72b58","block_type":"box","text":"The value of fixed-income securities in the Funds can be expected to vary inversely with changes in prevailing","page_number":49,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"989bb2af-7ead-49d7-9c9b-907704e8f352","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":49,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"ba990dfb-973f-4727-bc83-1be456ace94c","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":49,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"86a4a4a2-62b2-4287-8728-01d1c43a91cd","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":49,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"036b4a16-2201-4128-95b7-c4bfa091e60c","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":49,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"f1409c48-69c9-450b-af99-ea858c09491d","block_type":"box","text":"Floating and Variable Rate Securities","page_number":49,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"10ffc961-49d8-4cc4-a423-347b46391638","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":49,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"a891d08b-ecbd-477f-a4ac-cc0b7ea89fef","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":49,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"db5d272e-52a0-4ef1-8304-bbae47645e79","block_type":"box","text":"with fixed interest rates, but may decline in value if their interest rates do not rise as much, or as quickly, as interest","page_number":49,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"3d50ec91-2099-4aad-980b-ffc6b8ef8b62","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":49,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"1bceec1f-b02f-4565-a286-2cd13be8b10c","block_type":"box","text":"impact of interest rate changes on floating rate investments is typically mitigated by the periodic interest rate reset of","page_number":49,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"c7b449fa-79bb-4ab5-b275-539d773dd44f","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":49,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"875f42c1-9831-4ab4-be5c-44ea6ee18d06","block_type":"box","text":"market interest rates.","page_number":49,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"783f6f6f-edbe-4da3-8701-37817efa3442","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":49,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"3f959738-53d1-4679-9b45-60c7b9f89057","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":49,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"3f80787f-704f-4f9e-ba96-442246561f2c","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":49,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"5221cc84-98ea-4f47-a530-214d4d60abfb","block_type":"box","text":"common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of","page_number":49,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"c40ab6ad-e785-4375-9e3e-02f038d84640","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":49,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"3ac5c6a8-0ed6-4fd9-9166-3313295167dd","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":49,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"9710f845-242a-4f9d-805d-89f1f84ccb8e","block_type":"box","text":"possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on","page_number":49,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"a530ea65-ca1d-4bf0-bef1-09ce90c9ba37","block_type":"box","text":"a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if a Fund","page_number":49,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"0df93700-b209-4b6b-b173-e9484994f23d","block_type":"box","text":"purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5%","page_number":49,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"c62a6fe6-8101-4181-b66f-9b5937f09125","block_type":"box","text":"semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010","page_number":49,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"3f01e586-93ef-4584-ab9e-e47198702dac","block_type":"box","text":"and the first semi-annual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half","page_number":49,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"91119745-eac2-4bdc-be10-1d18776ae459","block_type":"box","text":"of the year resulted in the whole year’s inflation equaling 3%, the end-of-year par value of the bond would be $1,030","page_number":49,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"6f18c845-e9fb-461c-8617-b800f43c7264","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":49,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"2bdcf3d0-8e6b-4844-85de-b3c8c4d1a2f1","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":49,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"ca2ff30f-b288-4b9c-b4f0-86bb9f1ebf13","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":49,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"68ff2d1b-b556-4537-bfb0-3ab6da495419","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":49,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"544f5655-da06-4b59-b82e-4a9c69921d56","block_type":"box","text":"guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the","page_number":49,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"39636eb7-a6cd-4b81-ba25-32776a28be1d","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":49,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"2ab1a333-4789-46b5-9c59-3cb8082d1b06","block_type":"box","text":"inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided,","page_number":49,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"3359bad5-82a0-416b-a838-6703ae9dbcc6","block_type":"box","text":"II-9","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8a865cd5-0788-439c-99ce-13db3c6b4959","block_type":"box","text":"NM1026U-5982643-49/241","page_number":49,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"59e698fb-4800-43f1-8540-0f28fb6de55f","block_type":"box","text":"the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the","page_number":50,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"340550fc-6ab3-493b-a335-29b62776d11c","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":50,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"11c43352-374f-4ca2-ac24-b3c0df56ebba","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":50,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"02c74497-d509-487a-b752-d317227a3918","block_type":"box","text":"The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real","page_number":50,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"e2bbebb2-d90c-4b73-b46f-a0eec9777b65","block_type":"box","text":"interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore,","page_number":50,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"c35e7891-82b0-4da8-8b10-98cf5a464541","block_type":"box","text":"if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an","page_number":50,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"a83df9b7-cd97-4cf8-ac0f-71243a2f4c23","block_type":"box","text":"increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than","page_number":50,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"1a657506-7192-477c-b93a-407126075154","block_type":"box","text":"inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no","page_number":50,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"fade7732-a4a7-4c8e-8a20-b9ed01b53072","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":50,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"7b375377-9640-4b2d-b13e-b9014d8a767e","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":50,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"dd04e81d-28ac-4e7a-8267-d76d3153ed5d","block_type":"box","text":"inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to","page_number":50,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"99dabaab-5251-4b1d-b0e0-687e5d0437a6","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":50,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"0ffe1a3f-9b86-4f6c-ac49-497b0214b618","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":50,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"4d2a3e7b-39ba-43b7-8471-13ba1df0ca24","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":50,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"5c0b8123-98a0-4ef0-91cd-a0b2db4e9497","block_type":"box","text":"Consumer Price Index for Urban Consumers (“CPI-U”), which is calculated monthly by the U.S. Bureau of Labor","page_number":50,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"fea66cde-8654-443b-85c2-acba5ae4c22d","block_type":"box","text":"Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing,","page_number":50,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"add881f4-3bfa-46f5-bc18-fbf59906c239","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":50,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"a3abf78a-ac0d-4f12-a7cb-351243d7dcd6","block_type":"box","text":"reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any","page_number":50,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"6b84d097-1965-4457-8846-53e8547e4b28","block_type":"box","text":"foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover,","page_number":50,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"a6386c12-ddbd-45db-9fea-58cd10905236","block_type":"box","text":"there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the","page_number":50,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"45e5adaa-38ef-48c7-b1bb-8e04833411b0","block_type":"box","text":"United States.","page_number":50,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"a603bb57-24d3-4e29-980f-3ac90a6ac27e","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":50,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"a77fe91c-d424-4f7e-a316-9defb097df0c","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":50,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"e05667c0-1cb5-4687-a9c4-0d6ff948da7e","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":50,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"6dcb04d4-6da2-4b5f-97dd-178169c0c1c2","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":50,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"761ef95a-47e1-4ebd-b7d7-8288f3b837e7","block_type":"box","text":"securities rated in the four highest rating categories of an NRSRO or deemed to be of equivalent quality by a Fund’s","page_number":50,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"8a8fc674-b6e5-4d4d-b962-4b79df8c2eda","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":50,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"22db7ecd-2d96-401f-865c-cc83089e034a","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (i.e., “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":50,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"66ec3091-afab-4093-9db6-8f0839bcd553","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":50,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"d5c66029-3b30-4be3-9d23-34ee5609acb3","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":50,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"09f54907-a6ce-4492-aad6-ebcd7a3819b7","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":50,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"352eeff9-86bb-4c18-bde8-d650a214bf4b","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":50,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"3ba6286b-a393-401e-bfa3-f8fe7320dd7e","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":50,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"04292a11-26df-4efb-924c-d661f560f17a","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":50,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"c0948567-de4f-4edc-8893-98419cfca821","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":50,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"2cb6d580-2c66-4a6e-b763-bda9cd61810a","block_type":"box","text":"“junk bonds” are debt securities that are rated below investment grade by the major rating agencies or are securities","page_number":50,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"9829339f-6209-4129-88ea-3523e6333949","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":50,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"40f8b4bd-11e7-4f6a-9aa0-109dba02723e","block_type":"box","text":"for gain, non-investment grade debt securities may be subject to greater risks than securities which have higher credit","page_number":50,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"707c5bcc-dd28-4465-8787-798b4bb9e8c5","block_type":"box","text":"ratings, including a high risk of default, and their yields will fluctuate over time. High yield securities will generally be","page_number":50,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"de5d4ec8-3512-46a7-859e-df9d0aef2941","block_type":"box","text":"in the lower rating categories of recognized rating agencies (rated “Ba” or lower by Moody’s or “BB” or lower by S&P)","page_number":50,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"f2ab84f3-a88d-4509-a11c-edb83d8a6f4c","block_type":"box","text":"or will be non-rated. The credit rating of a high yield security does not necessarily address its market value risk, and","page_number":50,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"6a46aef6-1f4a-4958-b9b1-0de00076af65","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":50,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"426be283-a58b-413c-8111-ab65a29ba81c","block_type":"box","text":"condition. High yield securities are considered to be speculative with respect to the capacity of the issuer to timely","page_number":50,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"0164fd5a-945d-4e28-b61f-f36f68a23a1d","block_type":"box","text":"repay principal and pay interest or dividends in accordance with the terms of the obligation and may have more credit","page_number":50,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"f7e79fde-25db-43b4-94c3-536edabfd5a2","block_type":"box","text":"risk than higher rated securities.","page_number":50,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"0a925f0f-9408-4837-b142-b8a1940fcda5","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":50,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"e741aa2a-7026-4da9-b067-57f558c16519","block_type":"box","text":"•","page_number":50,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"394a564e-ed19-4def-8b1d-3373eb752ae3","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":50,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"2e0920ab-559e-43a9-a45c-e1dfa39e9870","block_type":"box","text":"in the issuer’s industry and to general economic conditions. Issuers of junk bonds may be unable to meet their","page_number":50,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"0ffb2a60-25f0-485b-8fb1-b3c3b4c6c3e8","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":50,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"6829fc02-ba4f-416a-b051-3be88ce008b8","block_type":"box","text":"unavailability of additional financing.","page_number":50,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"951e7548-2c8d-4e33-8c29-38e186d4961f","block_type":"box","text":"•","page_number":50,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"47d00b89-92be-4eb8-99a6-927648545790","block_type":"box","text":"The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of","page_number":50,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"a4f438c6-13ef-49e6-8fe6-40dc2f4acf01","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":50,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"f2ba1730-c857-4958-a2a4-9c0eab1533b0","block_type":"box","text":"The issuer’s ability to pay its debt obligations also may be lessened by specific issuer developments, or the","page_number":50,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"b2166c6d-fad9-4dff-9943-72b36d3e6d76","block_type":"box","text":"II-10","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5fe7f00-ee29-4f51-ae7a-6ea501118e71","block_type":"box","text":"NM1026U-5982643-50/241","page_number":50,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"dde686d2-b5df-4203-8865-566f5fa5ced2","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":51,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"d1572cd5-f11c-46ea-bf67-7ab9e9654de2","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":51,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"9ab3bb58-9850-4b43-b770-bbd31355b792","block_type":"box","text":"•","page_number":51,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"a69e4bc8-589b-4107-9a3b-36545a330562","block_type":"box","text":"Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the","page_number":51,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"6f1aa2ae-d85c-4518-a2f8-630ac95e0e88","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":51,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"bce70aba-e7b3-4393-912b-eef3ac4c6949","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":51,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"aac050ed-2a3a-4d13-9e6e-cd7a8006277e","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":51,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"776786b5-edaf-4bd3-ae98-4ea653ea114a","block_type":"box","text":"investors in higher rated securities.","page_number":51,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"a7facfee-66f9-4529-be1f-9c531bb606f4","block_type":"box","text":"•","page_number":51,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"c1733f00-dbcc-44d6-934e-13e0ff2bf9d1","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":51,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"725610ff-d618-4b76-b1f9-d77a09ced257","block_type":"box","text":"before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with","page_number":51,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"40a48775-66f2-41a7-9058-b15bd91cab0a","block_type":"box","text":"lower yields and may lose income.","page_number":51,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"eddc0ab0-3685-4841-ac58-fb8957925dd9","block_type":"box","text":"•","page_number":51,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"089cf8e4-2200-451f-9aeb-ba0233ce9198","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":51,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"1d763e5a-6a05-4e87-a2d8-e85f3e39d592","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":51,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"29b7d067-f193-4380-9bee-9f51d63286f1","block_type":"box","text":"•","page_number":51,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"5b8dee0f-a3d1-4d5d-bcbb-89ecafee8f4a","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":51,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"a136dd2f-497c-4386-9297-c7a876d99093","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":51,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"cfc8e049-345b-4f4b-a122-fcbd9ad903f2","block_type":"box","text":"securities due to the limited number of investors in that sector of the market. There are fewer dealers in the junk","page_number":51,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"cd160428-5662-4520-aa02-7d7b0e4157c7","block_type":"box","text":"bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers, and","page_number":51,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"081c061e-8077-4488-8ea3-78eb64931fc2","block_type":"box","text":"such quotations may not be the actual prices available for a purchase or sale. Because junk bonds are less","page_number":51,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"8c0069ec-bdd7-4fe8-823c-9f615b25ab29","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":51,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"2c0cf3b8-dd75-4faa-92bf-50a95e5f0039","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":51,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"a91525c2-48bc-4e88-af43-b49aaa5d2acd","block_type":"box","text":"•","page_number":51,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"73bcf787-c71e-43fb-ad62-9d25b3414544","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":51,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"4bcf1fb2-c23b-4bf6-8d17-73935b53db5f","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":51,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"72cb7b4a-4428-4ea6-81e9-487581fb9628","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":51,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"ca1df2f4-cd10-4f16-8f64-e931a5daed04","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":51,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"e7a4f08a-57c7-49ee-8ade-9ad8dd4e3ea2","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":51,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"2a37c126-a706-404e-be20-de5c4423b371","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":51,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"d49db6cb-6604-475d-b810-f206c03c662f","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":51,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"680bf6d2-8f77-490b-a469-535a1942b471","block_type":"box","text":"due to the limited number of investors in that sector of the market. An illiquid secondary market may adversely","page_number":51,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"5d555dd6-1d0f-4810-9da5-d33d41681e07","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":51,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"d4ac624d-7e40-41e2-be2a-d17fec5d7934","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":51,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"9d269b18-783e-439a-a133-9d365b26d672","block_type":"box","text":"on high yield securities are available only from a limited number of dealers, and such quotations may not be the","page_number":51,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"b87ecd0a-eef8-4645-aa33-8b07a905cbd6","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":51,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"ac63e923-2774-47db-84ef-b168f8746870","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":51,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"d27e7de7-80b4-4a4f-9115-cf0d79208edf","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":51,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"f2d674a5-b1ff-4620-9a8e-101e79de7d43","block_type":"box","text":"role in determining such valuations.","page_number":51,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"037a4d3e-2ac9-4dd4-9f96-0f114ca19eb4","block_type":"box","text":"•","page_number":51,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"014f3e4f-93b4-44ee-93c8-0670427cae79","block_type":"box","text":"A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with","page_number":51,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"6da11d4e-40be-4599-aad2-c81a5e3bd124","block_type":"box","text":"a defaulting issuer.","page_number":51,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"2ef93c88-8699-4bf3-8580-3a4de80e803a","block_type":"box","text":"•","page_number":51,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"06b2daaf-86ec-47ca-a6cf-14c3066bff19","block_type":"box","text":"The junk bond markets may react strongly to adverse news about an issuer or the economy, or to the perception","page_number":51,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"46fa3c31-9eaa-4ce7-a94b-279da6844170","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":51,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"f034ff0b-e1ab-4cb6-af9b-de00b83e957a","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":51,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"b10587fa-c004-47e8-ae9f-aa042779ce14","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":51,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"84c6e07e-83d9-4eb2-80bf-2e4991894cc7","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":51,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"fe0cff7a-1ddd-40a7-8f89-a249bbcff91f","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":51,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"e7c012f9-d2f5-4007-9ead-c78a442234fc","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":51,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"e0744c2e-ee5e-45cb-b8a3-3d54243bdccb","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":51,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"efe23df7-5640-46eb-86e5-b5ab9c4fcaee","block_type":"box","text":"•","page_number":51,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"e991a5be-f280-4265-a06a-a7773daed098","block_type":"box","text":"The rating assigned by a rating agency evaluates the issuing agency’s assessment of the safety of a non","page_number":51,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"ba233b60-bc12-469f-a778-2df8781d198a","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":51,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"75e05d2f-2645-45dd-86bc-79aa65244bcd","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":51,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"34980642-20e9-4b82-a8cc-6ecefc20c266","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":51,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"2ded9ec4-7618-48bc-86d0-679b27f9a034","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":51,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"581b883b-52e2-4042-814c-75901d136f00","block_type":"box","text":"depend more on the Manager’s or sub-adviser’s own credit analysis than in the case of mutual funds investing in","page_number":51,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"3f2ae164-a6b6-42f2-97f0-316d9d4f0445","block_type":"box","text":"higher-rated securities.","page_number":51,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"c1ff7ef2-93f2-4f8c-90f5-b4b45bd4947e","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":51,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"a9a6f784-2af9-42a7-aa60-7087ea07c116","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":51,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"06252d7e-dff2-421b-a65d-d17122a12997","block_type":"box","text":"the securities and the diversity of the Fund. The Manager or sub-adviser continuously monitors the issuers of non","page_number":51,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"a233e902-012f-4ded-b23e-9e399e9f842f","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":51,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"38dcf838-7130-404f-a26a-9c460717f415","block_type":"box","text":"II-11","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0eed7099-972b-485e-bae2-7d22f6b74e0c","block_type":"box","text":"NM1026U-5982643-51/241","page_number":51,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"48373975-81d6-4317-97ac-055d6092d624","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":52,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"c2404aba-1d98-417c-afe7-476aecfb2ca6","block_type":"box","text":"is reduced below the minimum credit rating that is permitted for a Fund, the Fund’s adviser or sub-adviser will","page_number":52,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"a4b1ded7-35d3-46c5-9715-82b7b859dd6f","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":52,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"ff37f4b0-f31d-46a9-bc92-349e2171afc5","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":52,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"27b51f76-16b3-4def-8181-238d188e3ee0","block_type":"box","text":"the Fund could be forced to sell its holdings without regard to the investment merits, thereby decreasing the assets","page_number":52,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"3031c094-070a-4db4-8dbb-e408dd7d076e","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":52,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"b8ce08ed-a8c3-49b6-8535-e10abac755fd","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":52,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"89f19f23-95d9-4488-add1-700fb75a4add","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":52,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"41199f50-1355-41a9-b855-d126bf1f6c43","block_type":"box","text":"Mezzanine Investments.","page_number":52,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"e8b4ccc3-f24b-4ede-ad46-d756fd158eb1","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":52,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"29a8180d-3110-41ef-9c4c-045534173bdf","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":52,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"30d9e626-58a2-4e47-accb-25f33fd105c7","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (e.g., with","page_number":52,"box":{"x":69,"y":219,"width":794,"height":11}},{"id":"a8085dc3-f758-4da2-850b-aa9649ae2dfa","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":52,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"9172f66d-5945-4a6c-bde8-12afcd67a27a","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":52,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"999d7df4-abba-437c-9e86-8cf6f4bcb761","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":52,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"cb0f9d2e-1b66-43f7-baa6-10f05751edc6","block_type":"box","text":"other obligations of the issuer.","page_number":52,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"b60458b2-e711-402f-9253-bfb05e8fe328","block_type":"box","text":"Pay-in-kind Bonds.","page_number":52,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"97f32bfa-c354-4ba9-a955-822717cb601e","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":52,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"17d4e1e0-6519-481e-a45d-e4c59d259414","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":52,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"5927caed-977c-4a4c-a95f-6c83f1693041","block_type":"box","text":"bonds also carry additional risk as holders of these types of securities realize no cash until the cash payment date","page_number":52,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"e86a0f15-9fe6-43a6-9d7e-59d886b97079","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":52,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"973469e3-4dc9-46a7-84e4-edb0c3da842e","block_type":"box","text":"investment. The market price of pay-in-kind bonds is affected by interest rate changes to a greater extent, and","page_number":52,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"6b75a2af-b81e-4b7b-bf09-facc0807f328","block_type":"box","text":"therefore tends to be more volatile, than that of securities which pay interest in cash. Additionally, current U.S.","page_number":52,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"bd2fb783-8537-4205-860d-15bb825bb5c9","block_type":"box","text":"federal tax law requires the holder of pay-in-kind bonds to accrue income with respect to these securities prior to the","page_number":52,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"e1c6551f-0a0a-4b53-a663-93b514957cd1","block_type":"box","text":"receipt of cash payments. To maintain its qualification as a regulated investment company and avoid liability for U.S.","page_number":52,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"f46b8017-fe73-45da-9dc8-874c5c7cf88f","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":52,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"8133fed0-052b-4dbb-96e6-d72737b4dcb1","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":52,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"90843750-565f-42b6-8e86-601a4e448264","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":52,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"6632cf49-49de-4052-b192-04cd449a2667","block_type":"box","text":"Supranational Entities.","page_number":52,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"3894a2de-ab70-4e21-9503-fc64978f1998","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":52,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"663f6596-2bdb-4bdf-9185-43fe28773566","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":52,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"18133432-3758-478e-827a-6afb7d24b9b9","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":52,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"0a2e5a3d-764d-4856-bb19-4b5713a008a7","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":52,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"542f3f17-f02c-4c1d-ad89-2e9e8ea2ad92","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":52,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"0d8d9523-4cec-49d9-a14d-47512e7ee149","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":52,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"79229f70-4732-440a-bcc2-21947b0b9467","block_type":"box","text":"additional capital contributions. If such contributions are not made, the entity may be unable to pay interest or repay","page_number":52,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"4ac192f0-318c-4eae-86cd-045c2f46af5d","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":52,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"9e968e9d-4723-482b-9684-9fb2eb7b542c","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":52,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"eec1d480-7d8f-4edc-961d-e0e299c6825d","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":52,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"b4b223f3-ea54-4f46-984c-8b559244edd5","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":52,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"eeb002b1-b947-4667-b4e2-6d5a9c038601","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":52,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"3a1c4ef6-4eee-4442-80d3-e0526fbd008c","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":52,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"fcd24ab5-943a-4037-bf91-d3e563c40caf","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":52,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"856fadda-4d77-4b0b-ad52-dfcec6a29790","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":52,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"c7eb2193-f6b9-4880-8eaf-0bbe9060ddd4","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":52,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"083814db-7f9b-42d1-9ca2-b3fe4c3f3ff8","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":52,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"f9be332e-ab66-4c7b-8308-9691e73c965d","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":52,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"ed0f5c65-a874-4a46-951a-1b8cad646805","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":52,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"87c7836b-00ee-4d78-a304-bc10ff128d2f","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":52,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"aef6f60c-3cd9-46ab-8fd3-e7f7f7904af3","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":52,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"38d901d6-929c-4346-afb0-dacf6b9b8686","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":52,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"2a34e1f9-0f1e-4daa-a1da-3f810bfea7fc","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":52,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"08ef709f-11a6-4379-870b-f882c8fdd1d0","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":52,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"976b8d2f-6ad1-40e4-8b7a-5d2941805a84","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":52,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"20573034-0a11-4549-9e1c-8b12cf2a8e27","block_type":"box","text":"Available information concerning the issuer may not be as current as for sponsored ADRs, EDRs and GDRs, and the","page_number":52,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"74788f2b-dd93-49ac-aa5d-a4903da3eb34","block_type":"box","text":"prices of unsponsored ADRs, EDRs and GDRs may be more volatile than if such instruments were sponsored by the","page_number":52,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"4338f9f2-c1f0-41fe-a9e8-4fea22fb06b1","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":52,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"8affd22c-d8e1-4dbc-99d8-dd8645b165d6","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":52,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"b60365d7-f01a-41bf-9dcf-c52ec5caf0fa","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":52,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"43b4558e-ccb0-475f-9375-42d2ed822740","block_type":"box","text":"II-12","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"15f5d5c2-5de4-49b3-8649-ef2cbd2d175f","block_type":"box","text":"NM1026U-5982643-52/241","page_number":52,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"0ba7d688-c192-4ebe-97b3-f600040a6c78","block_type":"box","text":"Derivatives.","page_number":53,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"23763c76-f3d2-4341-be11-f2b57c639a64","block_type":"box","text":"General.","page_number":53,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"c55bba3c-7935-467f-95e6-41b92e490163","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":53,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"7472660f-76f5-4c04-a6ef-443deac18835","block_type":"box","text":"their value from one or more securities, commodities (such as gold or oil), currencies (including bitcoin and ether),","page_number":53,"box":{"x":68,"y":82,"width":815,"height":12}},{"id":"c464b3e7-44cf-4ac0-8a50-a3f65c227394","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 prime lending","page_number":53,"box":{"x":70,"y":98,"width":831,"height":11}},{"id":"1ef7e613-ef12-4a98-8777-3606af7f04dc","block_type":"box","text":"rate) or other reference asset. Derivatives may allow a Fund to increase or decrease the level of risk to which the","page_number":53,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"d8ed4797-baa7-4445-a16f-b0c2997c5f54","block_type":"box","text":"Fund is exposed more quickly and efficiently than with other transactions. Cer tain Funds may use derivatives to","page_number":53,"box":{"x":70,"y":128,"width":793,"height":11}},{"id":"79e94e83-b283-42a3-8157-662c29bc0d98","block_type":"box","text":"maintain a por tion of their long and shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain","page_number":53,"box":{"x":69,"y":143,"width":837,"height":11}},{"id":"7de36778-a601-4e92-8021-1639e4f27ad1","block_type":"box","text":"exposure to an asset or asset class it is prohibited by its investment restrictions from purchasing directly. As","page_number":53,"box":{"x":69,"y":158,"width":777,"height":11}},{"id":"19a6dad8-ef95-4069-9d76-559589aed5c6","block_type":"box","text":"described below, derivatives can be used for hedging or speculative purposes. Funds will engage in transaction-level","page_number":53,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"bd4f202a-8087-4c92-83d0-cd531ea25de4","block_type":"box","text":"payment netting, i.e., the payment obligations of derivatives contracts are netted against one another with the Fund","page_number":53,"box":{"x":70,"y":188,"width":822,"height":12}},{"id":"07809bb2-8f54-464f-bade-7808644b5bc5","block_type":"box","text":"receiving or paying, as the case may be, only the net amount of the two payment streams.","page_number":53,"box":{"x":69,"y":203,"width":642,"height":12}},{"id":"f25cba49-591a-41da-8e49-4b349d5cbe0a","block_type":"box","text":"Hedging.","page_number":53,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"c547260c-7349-4706-a1bf-17190e4c9b2d","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":53,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"289984a4-4035-43f9-8ed9-dc07f6addf0e","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":53,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"967eeaa6-afb5-4650-a111-ebf7f32617ac","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":53,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"871531ed-c669-4b4e-b156-13bb1ec84ced","block_type":"box","text":"reduce or eliminate gains. In addition, hedging may cause losses if the market moves in an unanticipated manner, or","page_number":53,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"2211eae1-28e2-48e9-978e-a1f85972175a","block_type":"box","text":"if the cost of the derivative outweighs the benefit of the hedge. The effectiveness of hedging may be reduced by","page_number":53,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"2689b42a-359c-4079-89cb-95aedb51283c","block_type":"box","text":"correlation risk, i.e., the risk that changes in the value of the derivative will not match those of the holdings being","page_number":53,"box":{"x":69,"y":302,"width":809,"height":11}},{"id":"3ce21b76-d32e-4a11-b895-f5110db6fe13","block_type":"box","text":"hedged as expected by a Fund, which may result in additional losses to the Fund. The inability to close or offset","page_number":53,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"a7db73f9-e657-4d6b-b642-b2fd66d21bb1","block_type":"box","text":"derivatives could also reduce the effectiveness of a Fund’s hedging. There is no assurance that a Fund’s hedging will","page_number":53,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"8cd69e7d-ddb8-47ae-938a-0c85b99121ca","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":53,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"48f08b19-4796-4f1f-b86d-041bfaab455b","block_type":"box","text":"Speculation.","page_number":53,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"1b352850-3cd1-4947-a918-e989045be32e","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":53,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"f7ce60d7-2fca-4003-9258-215d0cf071b9","block_type":"box","text":"use of a derivative is speculative if the Fund is primarily seeking to achieve gains, rather than offset the risk of other","page_number":53,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"aefc0e26-fd3f-4c1f-ae9a-195e5bcb8b2a","block_type":"box","text":"positions. To the extent a Fund invests in a derivative for speculative purposes, the Fund will be fully exposed to the","page_number":53,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"47af72fb-2485-4229-94b7-aed26ae87e35","block_type":"box","text":"risks of loss of that derivative, which may sometimes be greater than the derivative’s cost, and the potential for loss","page_number":53,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"9a5f18b7-7ca1-43f3-a103-4eef05e12fd9","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":53,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"e97f8931-b347-46f0-9e66-d7342e22edf8","block_type":"box","text":"Regulation of Derivatives.","page_number":53,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"8d064632-7032-4176-913f-ce647f2fd27f","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act. Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":53,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"f82bb9e9-06df-46df-8262-62075cf629d0","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":53,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"98b659d2-3ef9-4c06-bad3-e0f57f0d7f49","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":53,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"bac73f42-5542-4136-ae98-843c6b55b364","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":53,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"f99c246d-8751-4ad2-8e67-949f8a42a4fe","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":53,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"570e5062-956c-4a64-a3e6-b1ee3be398dc","block_type":"box","text":"coverage”).","page_number":53,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"35cb9f99-6b1c-49cf-a050-20e90ab31c89","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":53,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"cfe63700-941c-4bd0-b2ab-8d89d2f71089","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":53,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"5ceeaeb7-ce0b-491c-a06d-2d1e8ecb1079","block_type":"box","text":"of the foregoing, or any similar instrument, under which a Fund is or may be required to make any payment or delivery","page_number":53,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"41397162-d052-4822-b913-7204effd8c95","block_type":"box","text":"of cash or other assets during the life of the instrument or at maturity or early termination, whether as margin or","page_number":53,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"c6a0daa9-d990-4f95-9d35-d47015783587","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":53,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"b7e4a0ed-f0df-46a9-a625-dd4ff825f041","block_type":"box","text":"financing transactions (e.g., recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":53,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"b4054611-4452-4043-9601-e2ab7e93e675","block_type":"box","text":"treat all of these transactions as Derivatives Transactions under Rule 18f-4; and (4) when-issued or forward-settling","page_number":53,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"4c6750e7-a0d7-4762-b8da-5119ba4933f9","block_type":"box","text":"securities (e.g., firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":53,"box":{"x":69,"y":680,"width":811,"height":11}},{"id":"dc0eb331-1ca8-4fb9-ab92-38bbaa533825","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":53,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"c94147ee-9d1f-4ad9-9c88-b0d246e79b92","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":53,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"193ca3fe-c890-4c54-a7b2-5e5a433bb327","block_type":"box","text":"Commitments”).","page_number":53,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"63b0d2c5-a362-4a98-8ea0-04e259f986b5","block_type":"box","text":"Unless a Fund is relying on the Limited Derivatives User Exception (as defined below), the Fund must comply with","page_number":53,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"1abed0a4-4461-4661-8f2e-780fee1b8e0b","block_type":"box","text":"Rule 18f-4 with respect to its Derivatives Transactions. Rule 18f-4, among other things, requires a Fund to adopt and","page_number":53,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"7ad28cdf-6c8e-4046-bf31-14297e8cf9f4","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":53,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"f2760fe3-bdbc-49a8-be5c-4a74a9f970bc","block_type":"box","text":"absolute limit on Fund leverage risk calculated based on value-at-risk (“VaR”). The DRMP is administered by a","page_number":53,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"1aa1ce14-885f-40b1-99ef-fc4ec92cbbc9","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":53,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"ab9d765f-3aae-4952-8e15-6f575a889b21","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":53,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"37dcf73d-023a-4378-9f7d-5ab19256ca03","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":53,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"1af7c7bc-f92f-43e9-ad92-78ed48833916","block_type":"box","text":"“derivatives exposure” is limited to 10% of its net assets (as calculated in accordance with Rule 18f-4) and the Fund","page_number":53,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"73f21baf-15ae-42d1-bbfe-d4813844da68","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":53,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"b885294c-1c3e-4ed7-b454-d0bdbf51d64f","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":53,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"78dc8daf-e0a2-41f8-bfd5-5b7da39fd731","block_type":"box","text":"II-13","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e5f89a5-c2d7-47ed-b95d-727174c38623","block_type":"box","text":"NM1026U-5982643-53/241","page_number":53,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"0d669d96-a76f-4fcc-bb1b-c03c2a332213","block_type":"box","text":"Dodd-Frank Regulations.","page_number":54,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"25d65461-bfd4-4b2c-916a-1eddf3d6f371","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":54,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"a6ddbc54-6e99-4f12-a5bd-66c5a1c6f473","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":54,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"96b03509-b14c-43f6-9355-12c31bb39435","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":54,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"5714c6f0-9e8a-487c-bbfb-1736fe8408b0","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":54,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"10101adc-7fa1-424c-8914-fa9729fc0856","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":54,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"1ac58e26-5724-42fa-b31f-e8e9bdf56011","block_type":"box","text":"Many OTC derivatives dealers are required to register with the CFTC as “swap dealers” and/or ultimately be","page_number":54,"box":{"x":102,"y":128,"width":767,"height":11}},{"id":"947d9d25-ded2-4e6e-b95b-4669535b7908","block_type":"box","text":"required to register with the SEC as “security-based swap dealers”. Registered swap dealers and security-based","page_number":54,"box":{"x":69,"y":143,"width":799,"height":11}},{"id":"aa66b7bf-9a34-4d48-8d91-63d0e547a418","block_type":"box","text":"swap dealers are subject to various regulatory requirements, including, but not limited to, margin, recordkeeping,","page_number":54,"box":{"x":69,"y":158,"width":806,"height":11}},{"id":"cd003e82-d452-4d7d-b4ef-63927d0e9512","block_type":"box","text":"repor ting, transparency, position limits, limitations on conflicts of interest, business conduct standards, minimum","page_number":54,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"d1690481-94f8-40de-a0ad-8fca28b3826e","block_type":"box","text":"capital requirements and other regulatory requirements, which indirectly impact the Funds that enter into","page_number":54,"box":{"x":69,"y":188,"width":747,"height":12}},{"id":"57669f81-8fdc-410e-9347-3c3c3e319949","block_type":"box","text":"transactions with them.","page_number":54,"box":{"x":68,"y":204,"width":167,"height":8}},{"id":"bd682231-658b-4873-83da-1193e7b25d3c","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":54,"box":{"x":101,"y":226,"width":745,"height":11}},{"id":"f7a34e8a-828f-46bd-8d80-42164f4e402a","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":54,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"7cb9e30c-4fa3-4ee4-b53e-871de3448582","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":54,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"3d676147-73de-4dae-9193-5693ea65b909","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":54,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"c719011d-a148-4290-8c8b-d0b027181722","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":54,"box":{"x":69,"y":286,"width":794,"height":12}},{"id":"3089a439-ace5-48cb-adb4-f59a23c61608","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":54,"box":{"x":69,"y":302,"width":815,"height":11}},{"id":"b9d3e3bd-9013-4d7c-892e-36a4d3eafd5c","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":54,"box":{"x":69,"y":317,"width":770,"height":11}},{"id":"0ccdfeec-00c7-4510-8b89-cc6ddd3f6c9c","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":54,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"d18ded84-4e67-457c-a68e-cc961e64a5d2","block_type":"box","text":"the FCM and the customer. These regulatory requirements may make it more difficult and costly for the Funds to","page_number":54,"box":{"x":68,"y":347,"width":804,"height":11}},{"id":"ee20c4af-932c-46af-82ae-52ce3302a45e","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":54,"box":{"x":69,"y":362,"width":839,"height":11}},{"id":"39d8f7a6-c0c8-43b4-99dc-5745a7d34be7","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":54,"box":{"x":69,"y":377,"width":814,"height":11}},{"id":"7fad47c8-7478-483f-85d4-d47d53b02d1a","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":54,"box":{"x":68,"y":392,"width":796,"height":12}},{"id":"808b13c1-e0a0-4352-892e-b5a1df1d7885","block_type":"box","text":"member FCM or as a direct member, a Fund would be required to comply with the rules of the execution facility,","page_number":54,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"23b7728c-77ff-40e8-9e48-c4b223fc8230","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":54,"box":{"x":69,"y":423,"width":370,"height":11}},{"id":"9aa39751-e3e2-424f-b923-db1afd68952b","block_type":"box","text":"With respect to cleared OTC derivatives and futures contracts and options on futures, a Fund will not face a","page_number":54,"box":{"x":101,"y":445,"width":766,"height":11}},{"id":"03e39558-f348-4a5f-9693-ea47fee7667e","block_type":"box","text":"clearinghouse directly but rather will do so through a FCM that is registered with the CFTC and/or SEC and that acts","page_number":54,"box":{"x":69,"y":460,"width":826,"height":12}},{"id":"f30d883c-4bfe-48e0-99f5-226e3cfe96e4","block_type":"box","text":"as a clearing member. A Fund may face the indirect risk of the failure of another clearing member customer to meet","page_number":54,"box":{"x":69,"y":475,"width":825,"height":12}},{"id":"bac490bd-6976-4cc2-bd5d-ca32a847d443","block_type":"box","text":"its obligations to its clearing member. Such scenario could arise due to a default by the clearing member on its","page_number":54,"box":{"x":70,"y":491,"width":791,"height":11}},{"id":"85682952-4782-4f7b-acb0-1f45ae7f3470","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":54,"box":{"x":69,"y":506,"width":793,"height":11}},{"id":"21bc271b-b945-4a33-91bf-12b107835a4a","block_type":"box","text":"member.","page_number":54,"box":{"x":69,"y":521,"width":60,"height":9}},{"id":"0883e6c9-d6ef-4e24-aa6c-7b9705a9c65b","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":54,"box":{"x":102,"y":544,"width":782,"height":11}},{"id":"a65bc701-a89a-47aa-85ab-bf684d690ef7","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":54,"box":{"x":69,"y":559,"width":837,"height":11}},{"id":"508125e4-87ef-4832-8772-41648e51072c","block_type":"box","text":"was widely permitted for OTC derivatives before Dodd-Frank. While an FCM may require its customer to post initial","page_number":54,"box":{"x":68,"y":574,"width":811,"height":11}},{"id":"bdcd19ff-bac8-47ad-a986-53d315a7e43b","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":54,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"e24ad12f-9391-4358-905f-628d7229922a","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":54,"box":{"x":70,"y":604,"width":754,"height":11}},{"id":"d695ec1a-358b-4739-8c19-20ce4471d90c","block_type":"box","text":"clearinghouse does not generate earnings for the FCM. The inability of FCMs to earn the same levels of returns on","page_number":54,"box":{"x":69,"y":619,"width":815,"height":11}},{"id":"f3871fbb-e02b-4c55-970d-9f2834bac6a0","block_type":"box","text":"initial margin for cleared OTC derivatives as they could earn with respect to non-cleared OTC derivatives may cause","page_number":54,"box":{"x":70,"y":634,"width":817,"height":12}},{"id":"1261bf84-76b6-459e-8d9f-18ea0962a699","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":54,"box":{"x":70,"y":649,"width":788,"height":12}},{"id":"6a2e53fc-a94e-4892-8052-d61ed88f86ce","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":54,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"ef84728c-5a4d-4588-a00b-83fc6bc859eb","block_type":"box","text":"payable to FCMs with respect to cleared OTC derivatives, which may raise the cost to Funds of clearing as compared","page_number":54,"box":{"x":70,"y":680,"width":829,"height":11}},{"id":"dc842d21-5f45-48ad-b35c-5679fc915563","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":54,"box":{"x":68,"y":695,"width":346,"height":11}},{"id":"f6e578aa-6022-4b68-93b6-47f7e5049756","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":54,"box":{"x":101,"y":718,"width":762,"height":11}},{"id":"85e6ee3c-9e00-4e8c-8e5f-a833c2b572c5","block_type":"box","text":"exchange variation margin with a Fund and may be required by applicable regulations to collect (and in some cases","page_number":54,"box":{"x":69,"y":733,"width":820,"height":11}},{"id":"1557e362-0a9c-48ba-ac11-cc57289ae927","block_type":"box","text":"exchange) initial margin with a Fund. Both initial and variation margin may be comprised of cash and/or securities,","page_number":54,"box":{"x":69,"y":748,"width":816,"height":11}},{"id":"5ea4c8d6-ae72-466a-8088-10f8aeb55a41","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":54,"box":{"x":69,"y":763,"width":825,"height":11}},{"id":"f13cfa4f-5376-4b63-8622-601810f865ff","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":54,"box":{"x":69,"y":778,"width":590,"height":11}},{"id":"b91d82a0-7628-4054-8f9f-1a1afd4db202","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":54,"box":{"x":101,"y":801,"width":783,"height":11}},{"id":"038ed526-204f-4747-af7d-044d4e15eba7","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":54,"box":{"x":69,"y":816,"width":833,"height":11}},{"id":"6e9245e2-4ccc-4a7f-9327-bfc33969059b","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":54,"box":{"x":68,"y":831,"width":837,"height":11}},{"id":"8d2563b2-22d7-42a0-8ec6-6de9c5c66382","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":54,"box":{"x":69,"y":846,"width":789,"height":11}},{"id":"bb31c75c-8afc-4af6-a7b0-281e1047e255","block_type":"box","text":"commodities. All positions owned or controlled by the same person or entity, even if in different accounts, must be","page_number":54,"box":{"x":69,"y":861,"width":818,"height":11}},{"id":"9783db8f-acaf-4ca2-a38e-142a2e4156f6","block_type":"box","text":"aggregated for purposes of complying with the speculative limits. Thus, even if a Fund does not intend to exceed","page_number":54,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"b61b6f66-d817-4a49-b7de-254eaa221f9d","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":54,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"280bd3bd-5ba7-44cb-a304-633cf00b2861","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":54,"box":{"x":69,"y":906,"width":827,"height":12}},{"id":"37bfcf1d-f833-4d6c-b512-49e8aeed76ec","block_type":"box","text":"II-14","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4e2a82c6-fb62-45f2-b304-7f9f8aeed4fe","block_type":"box","text":"NM1026U-5982643-54/241","page_number":54,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"50a689b5-1182-472f-91e2-00cd00531bb9","block_type":"box","text":"held by a Fund liquidated in order to avoid exceeding such limits. The modification of investment decisions or the","page_number":55,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"130e870b-2aab-4c70-8fee-0603883b39dd","block_type":"box","text":"elimination of open positions, if it occurs, may adversely affect the profitability of a Fund. A violation of position limits","page_number":55,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"59b999e9-8a3c-49c0-817e-ab29651ffdd7","block_type":"box","text":"could also lead to regulatory action materially adverse to a Fund’s investment strategy. A Fund may also be affected","page_number":55,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"046d4503-bdd7-4a7e-bfd1-5de2fa11adad","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":55,"box":{"x":69,"y":90,"width":785,"height":11}},{"id":"bdc6a6ee-8882-44f4-a746-29d26726371b","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":55,"box":{"x":70,"y":105,"width":350,"height":11}},{"id":"8ba21925-20ea-4efe-b0fa-2e41d9f95fc4","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":55,"box":{"x":101,"y":128,"width":256,"height":11}},{"id":"384a43ca-2e8e-426f-acd1-23dc0775f939","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":55,"box":{"x":364,"y":128,"width":513,"height":11}},{"id":"5b1ef4ee-7b4c-43e4-8f4c-2770f3fd429f","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":55,"box":{"x":70,"y":143,"width":757,"height":11}},{"id":"b5cecfeb-bd7d-4cf0-be8c-a8b68863a3aa","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":55,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"28a582af-b4a9-493a-a47e-ffbb91255270","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":55,"box":{"x":68,"y":173,"width":762,"height":11}},{"id":"15749d69-a42c-4227-af66-13ed30844ee0","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":55,"box":{"x":69,"y":188,"width":825,"height":12}},{"id":"693fee29-0b3e-40d2-aef0-e45a807ad727","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":55,"box":{"x":69,"y":203,"width":798,"height":12}},{"id":"91a8dd4c-d6fb-4856-8c6b-e267e69d8762","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":55,"box":{"x":70,"y":218,"width":785,"height":12}},{"id":"602bb3b4-9c8f-41d1-9a89-66e8693e2e5e","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":55,"box":{"x":69,"y":234,"width":787,"height":11}},{"id":"3992d27b-693d-494f-b95d-12ab0dd7b33a","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":55,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"0fb87aff-81c0-40fd-8fbf-737631a55a5a","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":55,"box":{"x":69,"y":264,"width":771,"height":11}},{"id":"dc15f7cb-5d10-47b6-bf65-e4ab45a76297","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":55,"box":{"x":70,"y":279,"width":812,"height":11}},{"id":"8f5aafad-1029-431a-9dc7-1674bbd44549","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":55,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"96dea039-3be0-4f2c-8192-647875adaa95","block_type":"box","text":"Member States to apply position limits to the size of a net position a person can hold at any time in commodity","page_number":55,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"9179eeca-031c-4c7a-a59f-690b61125561","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":55,"box":{"x":69,"y":324,"width":765,"height":12}},{"id":"c5b1545e-8778-49cb-b328-23751d16f420","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":55,"box":{"x":69,"y":339,"width":720,"height":12}},{"id":"9c323fa0-fa4f-4318-9de1-ccde7dd19648","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":55,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"80994c99-1531-4fe8-bafd-1ea447d1ae7b","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":55,"box":{"x":69,"y":377,"width":762,"height":12}},{"id":"5f530864-96b6-427e-8322-8dce1605e02d","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":55,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"c171d46d-9ad8-4b64-8580-2c6f049cd185","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":55,"box":{"x":69,"y":407,"width":812,"height":12}},{"id":"dc154100-18f5-4ff9-9169-5aaf17b885d8","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":55,"box":{"x":68,"y":423,"width":787,"height":11}},{"id":"ef0a99cc-8ee3-4725-a61f-881d7da41d34","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":55,"box":{"x":69,"y":438,"width":810,"height":11}},{"id":"2c5faa19-cfac-4665-9336-ec312c69f70e","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":55,"box":{"x":67,"y":453,"width":795,"height":11}},{"id":"2ff95086-0171-4acc-9236-7113a17b486a","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":55,"box":{"x":70,"y":468,"width":835,"height":11}},{"id":"82fde970-bb10-4b44-b93f-4dda18976373","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":55,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"c6256444-285e-44ef-9210-cd9f50782657","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":55,"box":{"x":68,"y":498,"width":814,"height":11}},{"id":"0c0a1076-74a1-4d53-8e14-73daaf37cb6c","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":55,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"a775a4e9-a15e-49fe-9e90-1f4896f1a20b","block_type":"box","text":"collateral received under such contracts.","page_number":55,"box":{"x":69,"y":529,"width":288,"height":8}},{"id":"fa3fcd31-41db-4de8-b04f-471bd4842756","block_type":"box","text":"Regulatory changes or actions may alter the nature of an investment in bitcoin or ether futures or restrict the use","page_number":55,"box":{"x":102,"y":551,"width":807,"height":11}},{"id":"60ec77e7-a2ac-4fae-a5ac-24ed2e2b05b4","block_type":"box","text":"of bitcoin or ether or the operations of digital asset networks or exchanges on which bitcoin or ether trades in a","page_number":55,"box":{"x":69,"y":566,"width":793,"height":11}},{"id":"cfd6b722-51c9-4162-a8f7-3712f3e7d340","block_type":"box","text":"manner that adversely affects the price of such digital asset futures, which could adversely impact a Fund.","page_number":55,"box":{"x":69,"y":581,"width":759,"height":12}},{"id":"6bc806a0-b3ef-4d73-81cf-f5a59c532319","block_type":"box","text":"Risk Factors in Derivatives.","page_number":55,"box":{"x":102,"y":604,"width":191,"height":9}},{"id":"96176399-c605-4ca3-bce6-fbb1d1ed7b17","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":55,"box":{"x":101,"y":627,"width":597,"height":11}},{"id":"19064e88-6cb1-4310-a2e6-56cf4a24556e","block_type":"box","text":"Correlation Risk","page_number":55,"box":{"x":102,"y":649,"width":114,"height":9}},{"id":"fc5db207-0e13-4056-8364-b77f873c0b13","block_type":"box","text":"— the risk that changes in the value of a derivative will not match the changes in the value of","page_number":55,"box":{"x":220,"y":649,"width":668,"height":12}},{"id":"a14079ee-8fd5-4564-8efd-fa854072e560","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":55,"box":{"x":68,"y":664,"width":837,"height":12}},{"id":"ffd3c04d-5a05-4d41-81da-9e03ce3f2e8d","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":55,"box":{"x":68,"y":680,"width":818,"height":11}},{"id":"b13cbab7-0e9f-492f-b32b-cc72a6f4f1bf","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":55,"box":{"x":70,"y":695,"width":806,"height":11}},{"id":"840f9ec5-934c-415e-b72e-ddf61aa07d40","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":55,"box":{"x":69,"y":710,"width":725,"height":11}},{"id":"826a00e9-c3e5-42f5-b461-0656ea9f402e","block_type":"box","text":"Counterpar ty Risk","page_number":55,"box":{"x":102,"y":733,"width":128,"height":11}},{"id":"b722077a-cbb8-4550-a266-c3362ee39cd6","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":55,"box":{"x":233,"y":733,"width":632,"height":11}},{"id":"217bcc6f-8d7d-4db5-a17e-8d478e26f766","block_type":"box","text":"payments or otherwise honor its obligations to a Fund and the related risks of having concentrated exposure to such","page_number":55,"box":{"x":70,"y":748,"width":830,"height":11}},{"id":"0adaffaa-b6a9-4a08-af76-e7b3d498eb2e","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":55,"box":{"x":69,"y":763,"width":824,"height":11}},{"id":"0977f491-8573-46d9-acca-e87b13888579","block_type":"box","text":"corporation and often do not require payment of margin, and to the extent that the Fund has unrealized gains in such","page_number":55,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"abe014a6-a569-4aaa-b65e-c34bff9862e0","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":55,"box":{"x":70,"y":793,"width":831,"height":11}},{"id":"f7857a30-eebe-4982-8d75-4d9612cd465f","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":55,"box":{"x":69,"y":808,"width":806,"height":11}},{"id":"f182ae64-8730-4ea3-bad1-8bfcd4d15399","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":55,"box":{"x":69,"y":823,"width":803,"height":12}},{"id":"19950a4a-4147-4b34-af2e-939abfd15432","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":55,"box":{"x":70,"y":839,"width":760,"height":11}},{"id":"8c570bb9-ae47-46cf-833f-4677719696bc","block_type":"box","text":"transaction that is centrally cleared (whether mandatorily or voluntarily), the Fund is subject to the credit risk of the","page_number":55,"box":{"x":68,"y":853,"width":819,"height":12}},{"id":"5ffee4fb-b9a0-4b57-b1f9-8644df5a9304","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":55,"box":{"x":69,"y":869,"width":834,"height":11}},{"id":"9915b922-e78b-4152-95d4-b93ca4e5857b","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":55,"box":{"x":68,"y":884,"width":826,"height":11}},{"id":"b1cebe6c-f130-4c92-a841-902fadb99305","block_type":"box","text":"clearing members. It is not clear how an insolvency proceeding of a clearing house would be conducted and what","page_number":55,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"faebbe49-6d48-4a88-997d-481d7ff42315","block_type":"box","text":"II-15","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ab163358-49a6-43b6-8e19-b14693b1b2ff","block_type":"box","text":"NM1026U-5982643-55/241","page_number":55,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"7846db3e-648d-4035-b605-577cc2ca71f6","block_type":"box","text":"impact an insolvency of a clearing house would have on the financial system. Also, a Fund will not be fully protected","page_number":56,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"a082c54e-8b1b-43fa-b3e8-58146a6af9a4","block_type":"box","text":"in the event of the bankruptcy of a Fund’s clearing member because the Fund would be limited to recovering only a","page_number":56,"box":{"x":70,"y":60,"width":816,"height":11}},{"id":"18ad6cff-7397-498b-9dc1-011398f0d3d1","block_type":"box","text":"pro rata share of the funds held by the clearing member on behalf of customers by account class for cleared","page_number":56,"box":{"x":70,"y":75,"width":771,"height":11}},{"id":"1ded8cf7-48c2-475c-8d6c-f33bf5bd781e","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":56,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"940f83eb-3347-4ecf-b688-e9dc716dc61e","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":56,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"2af26782-9f94-4e7f-9a64-5a684dd611cc","block_type":"box","text":"applicable regulations, or in the event of fraud or misappropriation of customer assets by a clearing member, a Fund","page_number":56,"box":{"x":69,"y":120,"width":829,"height":12}},{"id":"ad60febc-ded7-4892-b3d5-eae0eb119fcb","block_type":"box","text":"could have only an unsecured creditor claim in an insolvency of the clearing member with respect to the assets held","page_number":56,"box":{"x":69,"y":135,"width":827,"height":12}},{"id":"7c706b4b-66c4-40af-b374-ae7639075c5e","block_type":"box","text":"by the clearing member.","page_number":56,"box":{"x":69,"y":151,"width":169,"height":11}},{"id":"cc7d532c-3a5c-4b9a-9764-62eafb9b2b7c","block_type":"box","text":"Credit Risk","page_number":56,"box":{"x":102,"y":173,"width":78,"height":9}},{"id":"8b25f72c-7c31-4a88-a5e5-ad9d03503313","block_type":"box","text":"— the risk that the reference entity in a credit default swap or similar derivative will not be able to","page_number":56,"box":{"x":184,"y":173,"width":698,"height":11}},{"id":"11fd9106-0f6f-4723-bbe8-49aedfb89bc2","block_type":"box","text":"honor its financial obligations.","page_number":56,"box":{"x":69,"y":188,"width":213,"height":12}},{"id":"d1684748-015b-4d4c-a013-350ee4adfdd8","block_type":"box","text":"Currency Risk","page_number":56,"box":{"x":102,"y":211,"width":98,"height":11}},{"id":"e8bc01eb-c01e-4fba-a862-1a5588307a7a","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":56,"box":{"x":204,"y":211,"width":669,"height":11}},{"id":"f0eaf74d-4edd-42bf-b976-51b3b03e42bc","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":56,"box":{"x":68,"y":226,"width":300,"height":11}},{"id":"905a1093-5bc4-4264-b6c1-411e5f8cc0b6","block_type":"box","text":"Illiquidity Risk","page_number":56,"box":{"x":102,"y":249,"width":98,"height":11}},{"id":"9a944a95-5a59-46ec-a172-026ded64e7d3","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":56,"box":{"x":204,"y":249,"width":693,"height":11}},{"id":"ebe7be83-3c98-412b-bb16-b6028c748818","block_type":"box","text":"or at the price desired by a Fund in connection with payments of margin, collateral, or settlement payments. There","page_number":56,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"cee41c70-d919-4351-b95f-00f961d65ddf","block_type":"box","text":"can be no assurance that a Fund will be able to unwind or offset a derivative at its desired price, in a secondary","page_number":56,"box":{"x":69,"y":279,"width":799,"height":11}},{"id":"9a5f9e3c-0164-4751-beed-a38e8a9a65a9","block_type":"box","text":"market or otherwise. It may, therefore, not be possible for the Fund to unwind its position in a derivative without","page_number":56,"box":{"x":69,"y":294,"width":799,"height":11}},{"id":"26c6a9f2-1870-4315-b272-40ebb1945ae2","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":56,"box":{"x":70,"y":309,"width":824,"height":11}},{"id":"e02f7898-fc95-43e0-8830-0646162bad1a","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":56,"box":{"x":70,"y":324,"width":830,"height":11}},{"id":"47aebdac-5fb7-4b3c-bee0-b3320d0302f9","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":56,"box":{"x":70,"y":339,"width":762,"height":12}},{"id":"39229102-d8b1-4f9a-9365-1dd0018da71c","block_type":"box","text":"purchased contains a formula price at which the instrument may be terminated or sold, or (ii) for which the Manager","page_number":56,"box":{"x":70,"y":355,"width":827,"height":11}},{"id":"9ffb97b2-d450-4f2b-87cf-6f9c731a93a6","block_type":"box","text":"anticipates the Fund can receive on each business day at least two independent bids or offers, unless a quotation","page_number":56,"box":{"x":69,"y":370,"width":816,"height":11}},{"id":"2e477c0e-9e9b-4992-ad19-fd7a49337659","block_type":"box","text":"from only one dealer is available, in which case that dealer’s quotation may be used. The illiquidity of the derivatives","page_number":56,"box":{"x":68,"y":385,"width":831,"height":11}},{"id":"4a42669b-f632-48b2-891f-255e284ccf30","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":56,"box":{"x":69,"y":400,"width":828,"height":11}},{"id":"3a575caa-9094-47a8-bc95-91c5e27a93dc","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":56,"box":{"x":68,"y":415,"width":809,"height":11}},{"id":"7a357c47-6419-464f-82b9-7a03020325d1","block_type":"box","text":"failures. In addition, the liquidity of a market in an exchange-traded derivative contract may be adversely affected by","page_number":56,"box":{"x":68,"y":430,"width":826,"height":11}},{"id":"58f4b03c-2698-44c8-bf54-bb466fc5721b","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":56,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"5227b22a-776d-4705-89d6-b53bf173ed37","block_type":"box","text":"traded contract price during a single trading day. Once the daily limit has been reached in the contract, no trades may","page_number":56,"box":{"x":68,"y":460,"width":838,"height":12}},{"id":"4e66e4d2-1738-4b4d-931d-35e14e9d9066","block_type":"box","text":"be entered into at a price beyond the limit, thus preventing the liquidation of open positions. Prices have in the past","page_number":56,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"eebb4b56-80ca-4f96-8710-9a36ba847a3e","block_type":"box","text":"moved to the daily limit on a number of consecutive trading days with little to no trading. If it is not possible to close","page_number":56,"box":{"x":69,"y":491,"width":828,"height":11}},{"id":"620a0b0e-649f-4588-9c9e-143d59b91c77","block_type":"box","text":"an open derivative position entered into by the Fund, the Fund would continue to be required to make daily cash","page_number":56,"box":{"x":69,"y":506,"width":796,"height":11}},{"id":"3d5de1a4-1d1e-4a3b-8f23-fed2207d444d","block_type":"box","text":"payments of variation margin in the event of adverse price movements. In such a situation, if the Fund has","page_number":56,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"fc6cf34f-a16a-4d18-9337-6b0f53a6c57e","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":56,"box":{"x":70,"y":536,"width":837,"height":11}},{"id":"a5b029eb-8fbc-4b42-92f4-f6afa1c3e7a0","block_type":"box","text":"may be disadvantageous to do so. A Fund’s investment in digital asset futures may involve illiquidity risk, as digital","page_number":56,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"17a6eb0c-43bc-4db9-b489-e34cbfd8409d","block_type":"box","text":"asset futures are not as heavily traded as other futures given that the digital asset futures market is relatively new.","page_number":56,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"9a650a8d-5562-494d-ba92-2b9ee73218be","block_type":"box","text":"Index Risk","page_number":56,"box":{"x":102,"y":589,"width":73,"height":9}},{"id":"cb5a1a2f-aef0-463d-9105-40d49c9056a6","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":56,"box":{"x":179,"y":589,"width":714,"height":11}},{"id":"e876f872-3b78-44c8-91df-4493a6b44fda","block_type":"box","text":"with changes in that index. If the index changes, the Fund could receive lower interest payments or experience a","page_number":56,"box":{"x":68,"y":604,"width":800,"height":11}},{"id":"247d1790-b452-4667-a6dd-519c0b4793fd","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":56,"box":{"x":69,"y":619,"width":678,"height":11}},{"id":"d499ac1e-ca69-4735-91bb-0ee5a4ba3af6","block_type":"box","text":"Legal Risk","page_number":56,"box":{"x":102,"y":642,"width":73,"height":11}},{"id":"932d769d-0b0f-4410-b325-257d52ac3523","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":56,"box":{"x":179,"y":642,"width":717,"height":11}},{"id":"29c59f8e-823c-4c27-bb67-93ebda61c886","block_type":"box","text":"or enforceability of a contract.","page_number":56,"box":{"x":69,"y":657,"width":211,"height":11}},{"id":"9a42f542-079a-4181-9ab8-ce963f4a3bcd","block_type":"box","text":"Leverage Risk","page_number":56,"box":{"x":102,"y":680,"width":99,"height":11}},{"id":"42b2bc3f-86c8-4d8b-96de-8d5de152c4ff","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":56,"box":{"x":205,"y":680,"width":648,"height":11}},{"id":"47dafdc4-2b7d-4d1f-81e9-1a2d3a955447","block_type":"box","text":"Relatively small market movements may result in large changes in the value of a derivatives position and can result","page_number":56,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"be172eca-123f-441b-b5c7-529f8e95fbaf","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":56,"box":{"x":70,"y":710,"width":425,"height":11}},{"id":"74b9028c-d6e2-4203-b7af-d1f4b569b280","block_type":"box","text":"Market Risk","page_number":56,"box":{"x":102,"y":733,"width":85,"height":9}},{"id":"ae1a80ff-9710-4e08-8704-bfd855d8d917","block_type":"box","text":"— the risk that changes in the value of one or more markets or changes with respect to the value of","page_number":56,"box":{"x":191,"y":732,"width":716,"height":12}},{"id":"475b0a05-2ff1-46ac-95b9-417260b36edc","block_type":"box","text":"the underlying asset will adversely affect the value of a derivative. In the event of an adverse movement, a Fund may","page_number":56,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"9330d7b1-e748-48e1-b10a-d796dd23227f","block_type":"box","text":"be required to pay substantial additional margin to maintain its position or the Fund’s returns may be adversely","page_number":56,"box":{"x":69,"y":763,"width":794,"height":11}},{"id":"d81305e8-a5a9-476a-a948-3685551e4801","block_type":"box","text":"affected.","page_number":56,"box":{"x":69,"y":778,"width":62,"height":9}},{"id":"7e0e9448-a695-4082-8c53-74ca279ad72f","block_type":"box","text":"Operational Risk","page_number":56,"box":{"x":102,"y":801,"width":117,"height":11}},{"id":"823fcc14-bea8-4dc4-96f9-040b37073264","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":56,"box":{"x":223,"y":801,"width":674,"height":11}},{"id":"f8c0a067-74ad-43a8-9aa3-3d5215f473d4","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":56,"box":{"x":70,"y":816,"width":451,"height":11}},{"id":"b63596dd-09c2-4f23-80bc-cd551227e06b","block_type":"box","text":"Valuation Risk","page_number":56,"box":{"x":103,"y":839,"width":99,"height":8}},{"id":"7b7102d7-a04b-4a2b-9de6-c8da6cadd85c","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":56,"box":{"x":206,"y":838,"width":701,"height":11}},{"id":"de4ae6fd-071a-4334-a5fd-f89d419d56f6","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":56,"box":{"x":70,"y":853,"width":779,"height":12}},{"id":"bb2e139e-0c87-4da6-b785-51e2460c2c08","block_type":"box","text":"complex instruments or quote prices for them. Exchanges where bitcoin or ether is traded (which are the source of","page_number":56,"box":{"x":69,"y":869,"width":817,"height":11}},{"id":"db341f01-2941-486f-9e9b-7c45fa991008","block_type":"box","text":"the price(s) used to determine the cash settlement amount for a Fund’s bitcoin or ether futures) have experienced","page_number":56,"box":{"x":68,"y":884,"width":814,"height":11}},{"id":"5700cd89-0539-48dd-a03b-4594cd47194c","block_type":"box","text":"II-16","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"186c3f28-d31d-4816-94e4-d982054467dc","block_type":"box","text":"NM1026U-5982643-56/241","page_number":56,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"cb73d23c-0536-4f67-bf26-501fffc2e0bc","block_type":"box","text":"technical and operational issues, making bitcoin or ether prices unavailable at times. In addition, the cash market in","page_number":57,"box":{"x":68,"y":45,"width":830,"height":11}},{"id":"8cf4a0ae-1c8d-4a79-a538-8ef42e9fb2c9","block_type":"box","text":"bitcoin or ether has been the target of fraud and manipulation, which could affect the pricing of bitcoin or ether","page_number":57,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"4ac27c3d-672d-4028-bbff-d56a819d1931","block_type":"box","text":"futures contracts.","page_number":57,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"9a34e0b5-cd9d-4ec2-b1c3-efc73300659d","block_type":"box","text":"Volatility Risk","page_number":57,"box":{"x":103,"y":98,"width":93,"height":11}},{"id":"56acac5c-9c7d-43dc-a419-73db1b8d297b","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period. In","page_number":57,"box":{"x":200,"y":98,"width":670,"height":11}},{"id":"6590ab05-d788-495c-8693-e96ededb9e6a","block_type":"box","text":"par ticular, bitcoin, ether, bitcoin futures and ether futures have generally exhibited significant price volatility relative","page_number":57,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"27dd85d0-be2a-4329-a3df-a01d1f89dc85","block_type":"box","text":"to more traditional asset classes. Bitcoin and ether futures may also experience significant price volatility as a result","page_number":57,"box":{"x":68,"y":128,"width":835,"height":11}},{"id":"7a5ae165-e0cc-4a80-9dde-81784ce1fd30","block_type":"box","text":"of the market fraud and manipulation noted above.","page_number":57,"box":{"x":69,"y":143,"width":361,"height":11}},{"id":"17caac1d-03ef-40ce-8b59-eec26852f200","block_type":"box","text":"Types of Derivatives Transactions.","page_number":57,"box":{"x":103,"y":166,"width":240,"height":11}},{"id":"fd380a4a-c24e-435d-a4be-5f30262775e9","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":57,"box":{"x":101,"y":188,"width":771,"height":12}},{"id":"8d2f8f43-bc1c-4c56-b916-68f005a9c4c6","block_type":"box","text":"including the following:","page_number":57,"box":{"x":70,"y":203,"width":159,"height":12}},{"id":"dd22ace7-3b1c-42eb-85cc-f5684916b4ed","block_type":"box","text":"Futures.","page_number":57,"box":{"x":102,"y":226,"width":56,"height":9}},{"id":"a56f73a3-660d-41fe-bdd1-09a659ecdcc2","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":57,"box":{"x":101,"y":249,"width":791,"height":11}},{"id":"84de9373-69e6-4aeb-ae79-3b026bf28d3e","block_type":"box","text":"exchange-traded contracts that require a purchaser to take delivery, and a seller to make delivery, of a specified","page_number":57,"box":{"x":69,"y":264,"width":799,"height":11}},{"id":"3a85b5b2-bef4-44eb-9c3f-8fc07b24b07e","block_type":"box","text":"amount of an asset at a specified future date and price. Upon purchasing or selling a futures contract, a Fund is","page_number":57,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"c903248e-ae58-4a52-badc-b6f5d9eaeafe","block_type":"box","text":"required to deposit initial margin equal to a percentage of the contract value. Futures contracts are marked to market","page_number":57,"box":{"x":69,"y":294,"width":838,"height":11}},{"id":"6533fff9-3222-4f65-b6c7-7257590922d0","block_type":"box","text":"daily for the duration of the contract, and the Fund will either post additional margin or be entitled to a payment, as","page_number":57,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"2e8f9d03-e0db-44a5-a275-562c6148101d","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":57,"box":{"x":69,"y":324,"width":478,"height":11}},{"id":"32d7d6aa-c943-42d6-a142-20e8a7fb79ba","block_type":"box","text":"A Fund may sell a futures contract prior to the completion of its term to limit its risk of loss from a decline in the","page_number":57,"box":{"x":101,"y":347,"width":801,"height":11}},{"id":"ad08e809-027b-4cad-a1cf-4be01131dbb7","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":57,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"f4b97a0c-b6a2-44eb-bc38-bb5b86016bf5","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":57,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"f0ddc23e-defb-4cac-9a9b-89fa9ee76013","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":57,"box":{"x":68,"y":392,"width":830,"height":12}},{"id":"8d6b4e75-b63c-416c-aa64-bd46d2b3f8fc","block_type":"box","text":"of the futures contract.","page_number":57,"box":{"x":69,"y":407,"width":162,"height":9}},{"id":"72ac576b-293b-49f3-a3a9-a826aa384c74","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":57,"box":{"x":101,"y":430,"width":756,"height":11}},{"id":"7208a087-83c8-4113-a066-436ede9e7575","block_type":"box","text":"commodities directly. In the event that such securities or commodities decline in value or a Fund determines not to","page_number":57,"box":{"x":69,"y":446,"width":820,"height":10}},{"id":"5e2f588e-363e-4fab-95dd-9809246b0318","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":57,"box":{"x":69,"y":460,"width":789,"height":12}},{"id":"c968b8e7-d659-4773-ae51-fb76d483ee70","block_type":"box","text":"relating to the futures position.","page_number":57,"box":{"x":69,"y":475,"width":219,"height":12}},{"id":"90be5c6a-e834-42ce-9542-d1e2ecc934d4","block_type":"box","text":"Futures contracts are also subject to position limits. In order to comply with position limits, a Fund may be","page_number":57,"box":{"x":102,"y":498,"width":757,"height":11}},{"id":"7033c8d2-8913-49ff-8fe8-35f62751af38","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":57,"box":{"x":69,"y":513,"width":797,"height":12}},{"id":"56d16519-2081-4665-8a51-9c53e2fb7d13","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":57,"box":{"x":70,"y":528,"width":816,"height":12}},{"id":"ab3c9190-ea36-449d-8265-732db46d7e6d","block_type":"box","text":"Regulations” above.","page_number":57,"box":{"x":70,"y":544,"width":140,"height":11}},{"id":"a0228318-f848-4c21-bc14-f04b701ed7d3","block_type":"box","text":"A Fund is also permitted to purchase or sell call and put options on futures contracts, including financial futures","page_number":57,"box":{"x":101,"y":566,"width":799,"height":11}},{"id":"4064fcc2-0e07-47e8-a9e8-8a04bea4dae6","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":57,"box":{"x":69,"y":581,"width":818,"height":12}},{"id":"29248e9f-e4fd-4c71-b4c0-5b88676f179a","block_type":"box","text":"(i.e., conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":57,"box":{"x":69,"y":596,"width":831,"height":12}},{"id":"97d59cfe-44cf-4593-8dae-846d23a904e0","block_type":"box","text":"may purchase put options or write call options on futures contracts and stock indices in lieu of selling the underlying","page_number":57,"box":{"x":69,"y":612,"width":830,"height":11}},{"id":"c042b491-1907-4306-a3f2-121c673158f2","block_type":"box","text":"futures contract in anticipation of a decrease in the market value of its securities. Similarly, a Fund can purchase call","page_number":57,"box":{"x":68,"y":627,"width":835,"height":11}},{"id":"1c0d5816-1fed-4c72-bcae-24ad7970d8eb","block_type":"box","text":"options, or write put options on futures contracts and stock indices, as a substitute for the purchase of such futures","page_number":57,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"9598d1ca-b645-4b57-84c3-1483ac6b3a96","block_type":"box","text":"contracts to hedge against the increased cost resulting from an increase in the market value of securities which the","page_number":57,"box":{"x":69,"y":657,"width":826,"height":11}},{"id":"12beff3f-ec92-4400-ae00-79806679c444","block_type":"box","text":"Fund intends to purchase.","page_number":57,"box":{"x":70,"y":672,"width":183,"height":11}},{"id":"2a56af26-4255-4f31-b690-dc353f11b3a4","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":57,"box":{"x":101,"y":695,"width":768,"height":11}},{"id":"cfa33442-aec8-4fec-b118-3d3013d40c51","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":57,"box":{"x":69,"y":710,"width":835,"height":11}},{"id":"e89d31e2-2fa2-4a62-8501-e7a8d01a24a0","block_type":"box","text":"determined by reference to the value of a security, an index of securities or a commodity at a future point in time. The","page_number":57,"box":{"x":69,"y":725,"width":839,"height":11}},{"id":"f044297b-658a-40d4-bd7a-c51e2672014e","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":57,"box":{"x":69,"y":740,"width":773,"height":11}},{"id":"dd83f222-b7a4-4a5c-a53b-87d67bd4d8e6","block_type":"box","text":"illiquidity.","page_number":57,"box":{"x":70,"y":755,"width":63,"height":11}},{"id":"929eab5e-32ea-4a46-b45f-76ae2c50f6e2","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":57,"box":{"x":102,"y":778,"width":757,"height":11}},{"id":"cd21efa4-af03-41d8-875b-8b7b52d578c0","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":57,"box":{"x":70,"y":793,"width":807,"height":11}},{"id":"d6025828-6294-4789-9973-7b663debf2d9","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":70,"y":808,"width":269,"height":9}},{"id":"9b6a3411-6c20-4e1a-8c73-0ec35417e795","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":57,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"8abc92bd-037b-4b42-8afe-81deafe97347","block_type":"box","text":"set by a regulator, such as a government entity, on the total amount of specific greenhouse gases, such as CO2, that","page_number":57,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"1d46a201-bc70-4594-b2fc-d005dfc84fe8","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":57,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"52a123ea-738e-4c0d-bb4b-00f32a5cafde","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":57,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"2cd89655-0b4c-4490-b273-dd5321bebe98","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":57,"box":{"x":68,"y":891,"width":657,"height":9}},{"id":"596eaa6a-4a25-4758-a37c-11bce92be8e3","block_type":"box","text":"II-17","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b21fc10-3ab5-4ef6-ac84-eddd97ca1ed6","block_type":"box","text":"NM1026U-5982643-57/241","page_number":57,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"cc43a09c-33e2-4d88-866a-b3b90854fa4a","block_type":"box","text":"The price for carbon futures contracts is based on a number of factors, including the supply of and the demand","page_number":58,"box":{"x":101,"y":45,"width":792,"height":11}},{"id":"8de6a734-70de-4aa8-b726-44c5217c48c0","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":58,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"573a36c1-d655-4635-9b82-77bded12f71e","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":58,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"39a6d578-bef3-48fb-9995-8a4c3799521e","block_type":"box","text":"for carbon futures contracts is still developing and may be subject to periods of illiquidity. During such times it may be","page_number":58,"box":{"x":68,"y":90,"width":841,"height":11}},{"id":"2083b6e4-1b44-4339-8ca5-9e969ba34a2a","block_type":"box","text":"difficult or impossible to buy or sell a position at the desired price. Market disruptions or volatility can also make it","page_number":58,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"37cd11a2-de22-4e25-90dc-99c1b4a0fcba","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":58,"box":{"x":69,"y":120,"width":637,"height":12}},{"id":"08166ec4-398c-4abd-8d9e-02f7ab00164e","block_type":"box","text":"Swap Agreements.","page_number":58,"box":{"x":102,"y":143,"width":131,"height":11}},{"id":"f19b6cf4-a885-48e2-9ea1-b3c992a13e45","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":58,"box":{"x":101,"y":166,"width":782,"height":11}},{"id":"97eb1c06-6fcd-403c-a2d8-29a43d1fca2a","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":58,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"7da9aa1d-8295-4851-88b1-471b463c4b78","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":58,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"54deaf9e-a6e8-4d91-b131-2e1dad152b9d","block_type":"box","text":"earned or realized from one or more underlying assets or rates of return, which may be adjusted for an interest","page_number":58,"box":{"x":69,"y":211,"width":792,"height":11}},{"id":"0fe3d0ce-a87c-47a7-a8d3-d7e670bb1eac","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":58,"box":{"x":68,"y":226,"width":832,"height":11}},{"id":"b32a1a66-6908-471e-b40d-5080577a6259","block_type":"box","text":"a “notional amount,” e.g., the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":58,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"add91442-5558-416e-b1c5-42160c8fd395","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":58,"box":{"x":70,"y":256,"width":787,"height":12}},{"id":"5cb61a34-4bf9-4dd5-893a-270fde836099","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":58,"box":{"x":69,"y":271,"width":762,"height":12}},{"id":"451fb57e-ced1-4ec9-8614-43c78c7f2875","block_type":"box","text":"agreement have agreed to exchange. A Fund’s obligations (or rights) under a swap agreement will generally be equal","page_number":58,"box":{"x":69,"y":287,"width":828,"height":11}},{"id":"c9375fcc-e293-4962-b5ad-c899a8feb726","block_type":"box","text":"only to the net amount to be paid or received under the agreement based on the relative values of the positions held","page_number":58,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"eb369036-54ca-44db-9d86-f7dfc0396fdc","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":58,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"12d5ffc6-9b79-428f-9425-eb8f4a47711b","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":58,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"9c530d25-ba75-4c6d-a8e4-82416b93d7b4","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":58,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"643e574a-48cf-455a-9f39-5b4e64c0b146","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":58,"box":{"x":68,"y":362,"width":763,"height":11}},{"id":"396f6e11-3833-4ee0-a8ce-121b8ab5a149","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":58,"box":{"x":102,"y":385,"width":329,"height":11}},{"id":"6959f4ea-a90a-4a09-a1c6-707e18c8dda5","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":58,"box":{"x":438,"y":385,"width":439,"height":11}},{"id":"eb8fb5f4-d2c9-4b7d-be8d-c1825a6355f1","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":58,"box":{"x":70,"y":400,"width":821,"height":11}},{"id":"64484df5-7a17-4461-bf08-2da986808072","block_type":"box","text":"“seller” an up-front payment, or a periodic stream of payments, over the term of the contract, provided generally that","page_number":58,"box":{"x":70,"y":415,"width":831,"height":11}},{"id":"40f7f891-ac6c-4e1c-86f5-78e520df22ef","block_type":"box","text":"no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the","page_number":58,"box":{"x":69,"y":430,"width":801,"height":11}},{"id":"cf3515c8-00ac-4149-a3cd-ad2a360b8296","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":58,"box":{"x":69,"y":445,"width":829,"height":11}},{"id":"763c24b4-cdb1-4aa0-96f9-51fe07563e3d","block_type":"box","text":"the reference entity. A Fund may be either the buyer or seller in the transaction. The Funds may enter into credit","page_number":58,"box":{"x":68,"y":460,"width":798,"height":12}},{"id":"71948c5e-c532-4cde-9dea-75b8eb6a3d87","block_type":"box","text":"default swaps that reference the obligations of a single entity (“single-name CDS”) or the obligations of entities that","page_number":58,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"523d3b05-8aa1-48d0-a63f-9c3bee63f4f7","block_type":"box","text":"make up an index (“index CDS”). References to “credit default swaps” shall collectively refer to single-name CDS and","page_number":58,"box":{"x":69,"y":491,"width":836,"height":11}},{"id":"cf56a5e3-1ce1-436c-873c-77d2ef27374d","block_type":"box","text":"index CDS.","page_number":58,"box":{"x":70,"y":506,"width":75,"height":9}},{"id":"1cc03787-5317-4238-8061-eea9206b2bc2","block_type":"box","text":"Credit default swaps have as reference obligations one or more securities or loans that are not currently held by","page_number":58,"box":{"x":102,"y":528,"width":800,"height":12}},{"id":"da96e39c-3fec-4dcf-8a4c-392c0de2c0c3","block_type":"box","text":"a Fund. In circumstances in which a Fund does not own the securities or loans that are deliverable under a credit","page_number":58,"box":{"x":69,"y":544,"width":806,"height":9}},{"id":"a168142c-78b4-43a1-ba9a-edef593c3041","block_type":"box","text":"default swap, the Fund is exposed to the risk that deliverable securities will not be available in the market, or will be","page_number":58,"box":{"x":69,"y":559,"width":828,"height":11}},{"id":"c34accd5-a9b5-4120-923c-e629a6b3bc2e","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":58,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"c135675b-e241-4ce1-87ce-318a3e5a0b42","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":58,"box":{"x":70,"y":589,"width":812,"height":11}},{"id":"c0a9db2d-db45-43a9-835c-3727c57a57fb","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":58,"box":{"x":69,"y":604,"width":798,"height":11}},{"id":"a631ab67-1bcc-4b1e-a315-ce2dbc43f18e","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":58,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"0a7af551-262d-42c3-b17d-a9f396587119","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":58,"box":{"x":69,"y":634,"width":810,"height":12}},{"id":"897d30bd-f4f2-404c-8f3d-ce24114e5b5c","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":58,"box":{"x":69,"y":649,"width":821,"height":12}},{"id":"cfa34d5b-9af1-47c0-8a78-dd2d83469490","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":58,"box":{"x":69,"y":664,"width":811,"height":11}},{"id":"eeded17c-496f-4002-82b9-e28ba676b542","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":58,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"b66a7a0c-b8bf-4192-93ff-cef79d8bf046","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":58,"box":{"x":69,"y":695,"width":827,"height":11}},{"id":"bab1abdd-ac93-442b-829b-ea34dc0c50b2","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":58,"box":{"x":70,"y":710,"width":834,"height":10}},{"id":"87a51e5a-f144-4f00-b475-0b2d82acf708","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":58,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"2d5d8464-a42d-4927-97c9-ae2ecbf1d4da","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":58,"box":{"x":69,"y":740,"width":809,"height":11}},{"id":"6c27cfbd-5d00-41d6-b7dc-a2c5376fb039","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":58,"box":{"x":69,"y":755,"width":815,"height":11}},{"id":"a211a715-22dd-4345-86eb-08fb9901ff09","block_type":"box","text":"respect to a “credit event” or otherwise does not establish a cash settlement auction, a Fund may not be able to","page_number":58,"box":{"x":69,"y":771,"width":807,"height":10}},{"id":"927886b9-f7ca-456e-a3d5-fe6657b4a29f","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":58,"box":{"x":69,"y":785,"width":832,"height":12}},{"id":"d16f2e4b-8813-4e65-89d0-4a2fede86671","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":58,"box":{"x":70,"y":801,"width":711,"height":11}},{"id":"f6c30c4d-313f-4c25-ac2d-2b282ce39e70","block_type":"box","text":"If a Fund is a buyer, it will lose the payments made under the terms of the credit default swap and recover","page_number":58,"box":{"x":102,"y":823,"width":757,"height":11}},{"id":"d9a47ece-29d5-4808-9c21-cf1f0fa1d8a9","block_type":"box","text":"nothing should no credit event occur. If a Fund is a seller and a credit event occurs, the value of any deliverable","page_number":58,"box":{"x":69,"y":838,"width":794,"height":12}},{"id":"bc9ed9f7-b7e8-4baa-a5d4-1f688cf708f0","block_type":"box","text":"obligation received by the Fund or the amount of cash settlement received by the Fund pursuant to the relevant cash","page_number":58,"box":{"x":69,"y":853,"width":830,"height":12}},{"id":"98c6f7a3-2da5-4fb2-8a76-c2e80ef1977d","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":58,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"5bcad416-69bb-4280-961f-79f93610b3f6","block_type":"box","text":"it pays to the buyer, resulting in a loss of value to the Fund. A Fund that sells credit default swaps incurs leveraged","page_number":58,"box":{"x":70,"y":884,"width":817,"height":11}},{"id":"15bc4275-7990-4fd0-a900-7f17759347e2","block_type":"box","text":"exposure to the credit of one or more reference entities and is subject to many of the same risks it would incur if it","page_number":58,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"f3799329-2f5d-4f82-a2cd-746e8565de60","block_type":"box","text":"II-18","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"738c4b3e-7d52-46f1-97a0-ea5abedfc5fa","block_type":"box","text":"NM1026U-5982643-58/241","page_number":58,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"ea7dc2be-c2ba-440c-9d72-b85ff1f20434","block_type":"box","text":"were holding debt securities issued by the relevant reference entity. However, a Fund will not have any legal recourse","page_number":59,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"b32e16ee-0cc1-47ed-b1e5-e80f91c14dd5","block_type":"box","text":"against any reference entity and will not benefit from any collateral securing the reference entity’s debt obligations. In","page_number":59,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"1d90454b-a4d0-4791-91c3-1bda8d25f825","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":59,"box":{"x":68,"y":75,"width":820,"height":9}},{"id":"3074f23e-6375-476d-8191-bb4437bff049","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":59,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"9a2b86b7-265a-4f1c-bab5-9d3c758748dc","block_type":"box","text":"which of the reference entity’s debt obligations to deliver to the Fund following a credit event and will likely choose","page_number":59,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"dc7ea9ee-d62c-4491-8b71-66823e3cb761","block_type":"box","text":"the obligations with the lowest market value in order to maximize the payment obligations of the Fund. In addition,","page_number":59,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"5f7b9252-4f10-45a4-aec2-2be3f8686cbe","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":59,"box":{"x":69,"y":135,"width":766,"height":12}},{"id":"e4c29410-e696-432a-ab36-823e2df70b5e","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":59,"box":{"x":69,"y":151,"width":840,"height":11}},{"id":"27285bf0-6c90-4a0a-84ea-a014ade46831","block_type":"box","text":"conditions.","page_number":59,"box":{"x":69,"y":166,"width":76,"height":9}},{"id":"434fa92a-ee12-4b06-8cc8-72f2ceee47a7","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":59,"box":{"x":102,"y":188,"width":762,"height":12}},{"id":"8d724015-7ce0-4342-b72d-a5feee07bcfd","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":59,"box":{"x":69,"y":203,"width":824,"height":12}},{"id":"a096a6a3-7465-408c-a22a-34aeab1002a6","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":59,"box":{"x":69,"y":219,"width":727,"height":11}},{"id":"88a26768-aa34-4f30-b9fd-11cf6c59094b","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":59,"box":{"x":69,"y":234,"width":819,"height":11}},{"id":"597f6eef-0670-420b-b343-ddf9b382946b","block_type":"box","text":"clear some, but not all, of the other credit default swaps not subject to mandatory clearing. The Funds face","page_number":59,"box":{"x":69,"y":249,"width":764,"height":11}},{"id":"b2156c41-7701-4842-a4cd-7670e7574776","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":59,"box":{"x":69,"y":264,"width":813,"height":11}},{"id":"0516e785-534b-4b97-b72d-a230777519c9","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":59,"box":{"x":69,"y":279,"width":813,"height":11}},{"id":"d8fd71f7-54e2-4926-994d-ec05422f38d2","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":59,"box":{"x":69,"y":294,"width":759,"height":11}},{"id":"42e533e7-0ebc-4915-ab42-1824c7c9bf31","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":59,"box":{"x":70,"y":309,"width":828,"height":11}},{"id":"94be92e5-6031-48a0-8a1d-db171260895b","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":59,"box":{"x":68,"y":325,"width":355,"height":11}},{"id":"d7a11428-6a81-4121-ba67-d6858aa86305","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":59,"box":{"x":102,"y":347,"width":750,"height":11}},{"id":"57f0b88f-17a6-4591-b33c-2f879ff5918c","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":59,"box":{"x":70,"y":362,"width":836,"height":11}},{"id":"3d7e9ff3-8ce0-4cda-9cd0-c603aee2f297","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":59,"box":{"x":69,"y":377,"width":785,"height":11}},{"id":"e63cf32f-c1e5-4dc3-b8fd-9f73c663872a","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":59,"box":{"x":69,"y":392,"width":825,"height":12}},{"id":"9d1c2fc8-a2d3-4a0b-8844-3ba90cc1bff3","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":59,"box":{"x":69,"y":407,"width":814,"height":12}},{"id":"d2828fe8-47c6-4aeb-bc01-670870cabcde","block_type":"box","text":"underlying security or loan to or by the Fund rather than by way of cash settlement, and there may be a wider range of","page_number":59,"box":{"x":69,"y":423,"width":839,"height":11}},{"id":"0ff51aab-dc68-4e94-af94-b73a362a623c","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":59,"box":{"x":69,"y":438,"width":495,"height":11}},{"id":"88ebe3d4-15f2-42f1-9917-c10ef27a216a","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":59,"box":{"x":102,"y":460,"width":752,"height":12}},{"id":"c10c4794-1257-4a03-83e0-f801469aef00","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":59,"box":{"x":70,"y":475,"width":814,"height":12}},{"id":"604bd263-8693-447d-b251-dd6c4cca8f50","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":59,"box":{"x":70,"y":491,"width":520,"height":11}},{"id":"32a1a129-77ab-45fa-a681-3ec7b31ab196","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":59,"box":{"x":102,"y":513,"width":273,"height":11}},{"id":"68527645-ace4-4524-80b4-65d6fdda328d","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":59,"box":{"x":381,"y":513,"width":515,"height":11}},{"id":"41951830-6d4d-474a-a54c-9a388c190f4b","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":59,"box":{"x":69,"y":528,"width":755,"height":12}},{"id":"b9dbadb7-46df-4979-ac5b-c41c7fbdbccb","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":59,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"47784798-e3c0-44ce-a5ca-44105ebb160a","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":59,"box":{"x":69,"y":559,"width":768,"height":11}},{"id":"5ad3fb34-a08e-46b2-a6f7-2d2e6003ddcf","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":59,"box":{"x":70,"y":574,"width":461,"height":11}},{"id":"e0c4feb5-64cc-4e47-a045-4ce3a8d13c15","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":59,"box":{"x":102,"y":596,"width":748,"height":12}},{"id":"4bc24c1f-4de1-435a-9039-5e3458af729b","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":59,"box":{"x":69,"y":612,"width":799,"height":11}},{"id":"13d2e59f-68b1-4f8c-9a06-58258e00f57c","block_type":"box","text":"interest rate swaps are permitted, although not required, to be cleared. Most of the interest rate swaps entered into","page_number":59,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"daf87049-dc4c-4955-9611-666e510888ea","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":59,"box":{"x":69,"y":642,"width":797,"height":11}},{"id":"876f523f-faba-4651-aeee-ff4bc4863617","block_type":"box","text":"cleared interest rate swaps.","page_number":59,"box":{"x":69,"y":657,"width":198,"height":11}},{"id":"b74f09b6-a1cc-467e-9534-43c78826b2a8","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":59,"box":{"x":101,"y":680,"width":766,"height":11}},{"id":"f41e50b6-5a21-4a49-b0f0-c7ba59ac5cde","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":59,"box":{"x":69,"y":695,"width":829,"height":11}},{"id":"0ec029bb-1849-4b72-b6e9-455a3bffdae1","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":59,"box":{"x":68,"y":710,"width":830,"height":11}},{"id":"1bedf11e-5b04-4426-b266-c71ff060732d","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":59,"box":{"x":70,"y":725,"width":822,"height":11}},{"id":"f9a61ae2-df89-4c20-b285-9ff28dd1d12c","block_type":"box","text":"Fund will have contractual remedies with respect to the transaction, but there can be no guarantee that the Fund will","page_number":59,"box":{"x":70,"y":740,"width":829,"height":11}},{"id":"a612cb1b-2ae8-4b2f-91dc-61edb78cf02f","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":59,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"28f36668-49b5-429e-a749-bf9ad68ef272","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":59,"box":{"x":69,"y":771,"width":801,"height":10}},{"id":"4cf6bc70-58f5-4894-8e64-225423b729bc","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":59,"box":{"x":70,"y":786,"width":480,"height":10}},{"id":"eda035b4-b212-4f0e-a3ac-74dfc855da93","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":59,"box":{"x":102,"y":808,"width":790,"height":11}},{"id":"9e15249e-bcf7-4f4b-9e48-b3c3f71626ab","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":59,"box":{"x":68,"y":823,"width":825,"height":11}},{"id":"2c9fbb83-e5d1-42e4-a8a9-2478260025df","block_type":"box","text":"or variable interest rate, index or asset.","page_number":59,"box":{"x":69,"y":839,"width":280,"height":10}},{"id":"57a53d50-a67b-4614-a253-810cf38dae79","block_type":"box","text":"The purchase of an interest rate floor entitles the purchaser, to the extent that a specified index falls below a","page_number":59,"box":{"x":101,"y":861,"width":780,"height":11}},{"id":"18f8d3b9-2118-43bf-8e25-ecc145223944","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":59,"box":{"x":70,"y":876,"width":805,"height":11}},{"id":"163f2dd3-7a14-475d-86e3-043c07457706","block_type":"box","text":"such interest rate floor.","page_number":59,"box":{"x":69,"y":891,"width":165,"height":9}},{"id":"ab2d257a-d019-4c49-a9f8-a0750d47fe9b","block_type":"box","text":"II-19","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"91fe8c91-e7e8-45d7-b4b6-543569d760d4","block_type":"box","text":"NM1026U-5982643-59/241","page_number":59,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"701b5a64-9d2b-4585-b057-c5783db24b9f","block_type":"box","text":"The purchase of an interest rate cap entitles the purchaser, to the extent that a specified index rises above a","page_number":60,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"fbe0e4d2-0fd8-404a-9478-ee2774805d09","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":60,"box":{"x":70,"y":60,"width":805,"height":11}},{"id":"b842e1df-804e-4dc1-a6fc-72fc518cad05","block_type":"box","text":"such interest rate cap.","page_number":60,"box":{"x":69,"y":75,"width":159,"height":11}},{"id":"f1855d9d-12cf-47b4-95e5-17ac5164dce8","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":60,"box":{"x":101,"y":98,"width":729,"height":11}},{"id":"8a6607e8-d67c-4737-8b9b-4052becafac9","block_type":"box","text":"commitments to pay or receive interest, e.g., an exchange of fixed rate payments for floating rate payments. For","page_number":60,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"bc7c6a17-0ed6-492c-a62c-1e0f2c43ad10","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":60,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"3b00cfda-4b37-4995-8c5c-cefcc09610b2","block_type":"box","text":"swap the right to receive interest at this fixed rate for the right to receive interest at a rate that is reset every week.","page_number":60,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"705b2a96-076a-43e0-a983-16e65f93d6ed","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":60,"box":{"x":68,"y":158,"width":832,"height":11}},{"id":"4a8740e0-2dd4-4a99-bb1b-4c655d95780c","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":60,"box":{"x":69,"y":173,"width":807,"height":11}},{"id":"8b92cd69-6447-4b2e-921d-5920e420474c","block_type":"box","text":"security with an interest rate that is reset every week and it would like to lock in what it believes to be a high interest","page_number":60,"box":{"x":69,"y":188,"width":836,"height":12}},{"id":"e68cf68b-3bbc-4f7f-ac66-586165e7f9ae","block_type":"box","text":"rate for one year, it may swap the right to receive interest at this variable weekly rate for the right to receive interest","page_number":60,"box":{"x":69,"y":203,"width":826,"height":12}},{"id":"4f6a57be-ddbc-45c5-ae77-03252d609cba","block_type":"box","text":"at a rate that is fixed for one year. Such a swap would protect the Fund from a reduction in yield due to falling interest","page_number":60,"box":{"x":69,"y":218,"width":840,"height":12}},{"id":"b84895d9-2aa2-4ec8-a9fb-eeeee93494ed","block_type":"box","text":"rates and may permit the Fund to enhance its income through the positive differential between one week and one","page_number":60,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"1f4d1955-c641-4944-af2d-8e911eec2803","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":60,"box":{"x":68,"y":249,"width":646,"height":11}},{"id":"2f599ade-de70-4f7a-95c6-ca206210505e","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":60,"box":{"x":102,"y":271,"width":798,"height":12}},{"id":"9502eb8a-356f-49fe-b1ce-bc1f5cc617f2","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":60,"box":{"x":70,"y":287,"width":490,"height":11}},{"id":"7f7ac047-bc47-4e6b-ad10-677e0c02902e","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":60,"box":{"x":102,"y":309,"width":791,"height":11}},{"id":"06094629-1d7f-4036-9ee8-e8a67ba49348","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":60,"box":{"x":69,"y":324,"width":454,"height":9}},{"id":"2954e5a0-3def-4605-9c53-6d1fcfff5216","block_type":"box","text":"Total Return Swaps.","page_number":60,"box":{"x":103,"y":347,"width":139,"height":11}},{"id":"c802ef84-341b-4526-8632-8a1a2e33705f","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":60,"box":{"x":249,"y":347,"width":634,"height":11}},{"id":"0d0e58a7-048a-4d68-99f5-187ae2f5cbad","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":60,"box":{"x":68,"y":362,"width":838,"height":11}},{"id":"844e135a-5f13-4427-9f7c-b0c0c2b76def","block_type":"box","text":"a fixed or variable interest rate or the total return from different underlying assets. The return of the assets","page_number":60,"box":{"x":69,"y":377,"width":764,"height":12}},{"id":"c74fadc5-f996-4129-a8ee-aee3d83ad859","block_type":"box","text":"underlying the contract includes both the income generated by the asset and the change in market value of the","page_number":60,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"e39fc084-d89d-411c-99f8-bf7ca5a877b7","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":60,"box":{"x":69,"y":407,"width":821,"height":12}},{"id":"03e8e60b-4ce7-40e0-9195-2365c6f49d91","block_type":"box","text":"Total return swaps on a specified security, basket of securities or securities indices may sometimes be referred to as","page_number":60,"box":{"x":68,"y":423,"width":838,"height":11}},{"id":"c3dcb3b7-6480-40cb-a5a9-b97d3d31a0ff","block_type":"box","text":"“contracts for difference.”","page_number":60,"box":{"x":70,"y":438,"width":184,"height":9}},{"id":"df9eab45-9c79-445d-9f4a-b457ef41c8d2","block_type":"box","text":"Total return swaps may be used to obtain exposure to a security or market without owning or taking physical","page_number":60,"box":{"x":101,"y":461,"width":770,"height":11}},{"id":"d4144422-4df5-4505-9cb2-1d0afd3ff75f","block_type":"box","text":"custody of such security or investing directly in such market. Upon entering into a total return swap, a Fund is","page_number":60,"box":{"x":69,"y":475,"width":780,"height":12}},{"id":"21dc0d15-7244-4149-b39b-fe0dc9ab9caa","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":60,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"214767b9-4318-4373-9d86-4a0c40b5fb59","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":60,"box":{"x":69,"y":506,"width":816,"height":11}},{"id":"cf348063-a9fa-4079-972f-abaa91188eaa","block_type":"box","text":"the notional amount of the swap.","page_number":60,"box":{"x":68,"y":521,"width":235,"height":11}},{"id":"6189fd3b-90d7-4e44-b7c9-db088c17e2a9","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":60,"box":{"x":101,"y":543,"width":746,"height":12}},{"id":"99767385-0516-4e80-bd65-89afc33ecff8","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":60,"box":{"x":69,"y":559,"width":433,"height":11}},{"id":"014df734-3c34-4ae1-b995-b2afb8a38ab1","block_type":"box","text":"Options.","page_number":60,"box":{"x":102,"y":581,"width":57,"height":11}},{"id":"458f8210-c590-4351-9ed2-8ebdf75a92de","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":60,"box":{"x":102,"y":604,"width":319,"height":11}},{"id":"ec95ad90-5f6b-4418-b50f-e086810b8050","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":60,"box":{"x":427,"y":604,"width":418,"height":11}},{"id":"9ad7a434-190f-4f84-a7fb-a20f407376eb","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":60,"box":{"x":69,"y":619,"width":838,"height":11}},{"id":"18b680cd-2471-4dee-8638-d4f697a86038","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":60,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"b703c717-f28b-4132-838a-721a55971dc9","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":60,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"145a9ce9-e958-4d74-b220-c3f68f410a36","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":60,"box":{"x":69,"y":664,"width":806,"height":12}},{"id":"d9bbdfa5-1e88-4aa5-8baf-c22cedc22905","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":60,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"56626f69-97da-4ca6-815d-a963d23469e7","block_type":"box","text":"OTC options have more flexible terms negotiated between the buyer and the seller, but are subject to greater credit","page_number":60,"box":{"x":69,"y":695,"width":822,"height":11}},{"id":"1ea5ecc6-2675-4b3a-a8ed-08050fb398c8","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":60,"box":{"x":69,"y":710,"width":366,"height":11}},{"id":"0982e994-aa31-4dec-97ca-ea4e8093528f","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":60,"box":{"x":101,"y":732,"width":743,"height":12}},{"id":"c5986895-3eb0-4768-9817-884da4fbfc1e","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":60,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"9dd8c2f3-9ffe-45a7-b624-ca6465dcf91d","block_type":"box","text":"exotic options that can only be exercised (or automatically expire) if the price of the underlying asset reaches one or","page_number":60,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"613f1740-38e4-4ba8-ad18-4aa1fc5be25e","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":60,"box":{"x":69,"y":778,"width":827,"height":11}},{"id":"a075a0ab-7032-4519-b5b3-e0be74ba40ff","block_type":"box","text":"a fixed all-or-nothing payout if one or more predetermined conditions are met. Exotic options are typically traded in","page_number":60,"box":{"x":69,"y":793,"width":812,"height":11}},{"id":"ffde8d2a-4c0e-4f0d-8609-0c3ce84f5d8c","block_type":"box","text":"OTC markets.","page_number":60,"box":{"x":69,"y":808,"width":95,"height":9}},{"id":"d89d6e5a-ffe4-4986-94d5-95be38229dd1","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":60,"box":{"x":101,"y":831,"width":806,"height":11}},{"id":"3b755371-8a47-45a8-bfce-e1cd9ef16536","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":60,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"600dd1ab-5b1d-4536-9a2d-8832570469ff","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":60,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"5990ab16-d927-48c3-a1e8-97076fc390e5","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":60,"box":{"x":70,"y":876,"width":831,"height":11}},{"id":"1c3a6ac4-180d-4fdf-8e25-63688a63775a","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":60,"box":{"x":68,"y":891,"width":833,"height":12}},{"id":"5177aec3-d570-4ca5-b9a5-88c4611a5705","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":60,"box":{"x":69,"y":907,"width":769,"height":11}},{"id":"d2b05852-f93d-43c7-81ea-13eaa5b987d1","block_type":"box","text":"II-20","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ccef25fb-92b8-473c-9d97-938a4c06c69d","block_type":"box","text":"NM1026U-5982643-60/241","page_number":60,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"701b4ab0-c352-40dd-8746-b7339b08bc73","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":61,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"7f652cfb-ba89-41fc-a43c-4853b16a8c1c","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":61,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"6c1ad7b5-d575-4fe4-a4d2-a3dbb9b6d191","block_type":"box","text":"Options Clearing Corporation may not at all times be adequate to handle current trading volume; or one or more","page_number":61,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"4748179e-7634-421c-a944-d0f0399b6808","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":61,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"ba0951a3-5319-42b4-9288-12e644e033ca","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":61,"box":{"x":68,"y":105,"width":822,"height":11}},{"id":"cb33bd14-a9f4-4282-8926-652dd8797bee","block_type":"box","text":"class or series of options) would cease to exist, although outstanding options that had been issued by the Options","page_number":61,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"4d8e2a38-ef69-46e0-87c1-407017e2d2d3","block_type":"box","text":"Clearing Corporation as a result of trades on that Exchange would continue to be exercisable in accordance with their","page_number":61,"box":{"x":69,"y":135,"width":836,"height":12}},{"id":"684c47e7-1a27-426a-82aa-e0277e8db224","block_type":"box","text":"terms.","page_number":61,"box":{"x":68,"y":151,"width":45,"height":8}},{"id":"9789ce0f-3aa7-48a0-a6da-23a1b36e7d74","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":61,"box":{"x":102,"y":173,"width":801,"height":11}},{"id":"b07833f1-33df-4a46-89e8-d7c9991d5918","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":61,"box":{"x":69,"y":188,"width":826,"height":12}},{"id":"53da7c8d-497b-47b4-90d5-981517776944","block_type":"box","text":"(regardless of whether such options are written on the same or different exchanges or are held or written on one or","page_number":61,"box":{"x":69,"y":203,"width":823,"height":12}},{"id":"26e8c2f8-1ad4-4600-aad0-a142bfddc760","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":61,"box":{"x":69,"y":218,"width":762,"height":12}},{"id":"c1c08796-35fe-4327-87ae-df815deccdd9","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":61,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"beacf014-f9c3-453e-ad74-1af0ac5c0188","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":61,"box":{"x":69,"y":249,"width":837,"height":11}},{"id":"e2cadeb4-a21a-4138-a860-dea46b1e75da","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":61,"box":{"x":69,"y":264,"width":491,"height":11}},{"id":"7ae5ad6c-cb6a-40fb-b02f-138380618d57","block_type":"box","text":"Call Options.","page_number":61,"box":{"x":102,"y":287,"width":89,"height":10}},{"id":"ecb4c2bb-ad3e-4a34-b5cf-215860041553","block_type":"box","text":"A Fund may purchase call options on any of the types of securities or instruments in which it may","page_number":61,"box":{"x":197,"y":286,"width":694,"height":12}},{"id":"a5571ed6-0da2-4135-ae26-ce67b68bc68c","block_type":"box","text":"invest. A purchased call option gives a Fund the right to buy, and obligates the seller to sell, the underlying security at","page_number":61,"box":{"x":70,"y":302,"width":838,"height":11}},{"id":"08785c9c-1a7a-45a9-aa13-650df2b4bd64","block_type":"box","text":"the exercise price at any time during the option period. A Fund also may purchase and sell call options on indices.","page_number":61,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"10111d5c-1233-48c6-b5f2-b7f6e4dbfc76","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":61,"box":{"x":70,"y":332,"width":795,"height":11}},{"id":"c8c7b06b-904c-4343-b74b-7130eb500d8a","block_type":"box","text":"underlying the option at a specified price upon exercise, an index option gives the holder the right to receive cash","page_number":61,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"5afed090-7367-46dc-a942-db207475ca31","block_type":"box","text":"upon exercise of the option if the level of the index upon which the option is based is greater than the exercise price","page_number":61,"box":{"x":69,"y":362,"width":830,"height":11}},{"id":"2703180d-2820-4ce4-855a-1e3718e40252","block_type":"box","text":"of the option.","page_number":61,"box":{"x":69,"y":377,"width":93,"height":11}},{"id":"d79fd42f-699a-4ace-8b1c-5f5dbd39fcd1","block_type":"box","text":"A written call option is covered if a Fund holds a call on the same security or index as the call written where the","page_number":61,"box":{"x":101,"y":400,"width":794,"height":11}},{"id":"3b11f2a7-f203-4c2c-9ecc-68fb03f60b76","block_type":"box","text":"exercise price of the call held is (i) equal to or less than the exercise price of the call written, or (ii) greater than the","page_number":61,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"f024a142-97dd-4126-847b-304bdc29d286","block_type":"box","text":"exercise price of the call written provided the difference is maintained by the Fund in assets which are not considered","page_number":61,"box":{"x":69,"y":430,"width":839,"height":11}},{"id":"6f813052-2846-448a-9606-1e3db10643cd","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":61,"box":{"x":70,"y":445,"width":778,"height":12}},{"id":"8dd750de-7c86-4d96-940e-62edf895c49a","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":61,"box":{"x":70,"y":460,"width":711,"height":12}},{"id":"0811dab4-f2d5-4a70-adb5-49656d55f3f7","block_type":"box","text":"A Fund may write (i.e., sell) covered call options on the securities or instruments in which it may invest and to","page_number":61,"box":{"x":101,"y":483,"width":782,"height":11}},{"id":"1d96b875-f80f-49f1-a490-98fa106d0d2a","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":61,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"689b952f-e583-4bfa-b635-912bc1237a82","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":61,"box":{"x":68,"y":513,"width":827,"height":12}},{"id":"68290eae-8c0e-4607-81a5-2265b6c04fef","block_type":"box","text":"specified future date and price set at the time of the contract. The principal reason for writing call options is the","page_number":61,"box":{"x":69,"y":528,"width":797,"height":12}},{"id":"45f6cd5d-b24b-4c78-8748-ff8aa2eefe53","block_type":"box","text":"attempt to realize, through the receipt of premiums, a greater return than would be realized on the securities alone.","page_number":61,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"e7ae2132-2e1a-4518-8ba4-9361e7997f7a","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":61,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"ee0fd744-26d4-411f-861c-d2e01592db4f","block_type":"box","text":"increase in the underlying security above the option exercise price. In addition, a Fund’s ability to sell the underlying","page_number":61,"box":{"x":70,"y":574,"width":825,"height":11}},{"id":"622ed8fe-e941-4282-91f2-5d4ebd99bd91","block_type":"box","text":"security will be limited while the option is in effect unless the Fund enters into a closing purchase transaction. A","page_number":61,"box":{"x":69,"y":589,"width":800,"height":11}},{"id":"3bdac073-e129-42dc-9cef-33130842bc13","block_type":"box","text":"closing purchase transaction cancels out a Fund’s position as the writer of an option by means of an offsetting","page_number":61,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"a673b3e2-2ee9-4f5a-8f3c-a898244e9cb4","block_type":"box","text":"purchase of an identical option prior to the expiration of the option it has written. Covered call options also serve as","page_number":61,"box":{"x":70,"y":619,"width":826,"height":11}},{"id":"6881cab5-4f65-4479-915a-19de61e3480d","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":61,"box":{"x":69,"y":634,"width":760,"height":12}},{"id":"0b77a0ac-30a9-45ff-922f-85834ba30173","block_type":"box","text":"A Fund may write (i.e., sell) uncovered call options on securities or instruments in which it may invest but that","page_number":61,"box":{"x":101,"y":657,"width":783,"height":11}},{"id":"12162eb1-17f4-4c71-aa3d-344d5d05098a","block_type":"box","text":"are not currently held by the Fund. The principal reason for writing uncovered call options is to realize income without","page_number":61,"box":{"x":69,"y":672,"width":834,"height":11}},{"id":"fe24077a-591a-449b-8b68-48b604b65498","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":61,"box":{"x":69,"y":687,"width":830,"height":11}},{"id":"aec1a4cb-4b0e-4dbc-98ac-afbc43454069","block_type":"box","text":"a Fund must deposit and maintain sufficient margin with the broker-dealer through which it made the uncovered call","page_number":61,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"eff738ad-a45c-4fc2-ae57-35696e6367c8","block_type":"box","text":"option as collateral to ensure that the securities can be purchased for delivery if and when the option is exercised.","page_number":61,"box":{"x":69,"y":717,"width":818,"height":12}},{"id":"f24356a2-bdb1-4214-83b1-d31676032aef","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":61,"box":{"x":70,"y":732,"width":806,"height":12}},{"id":"366850b4-9b42-4149-bd0c-c537b235f2da","block_type":"box","text":"strategy to increase a Fund’s income with minimal capital risk. Uncovered calls are riskier than covered calls because","page_number":61,"box":{"x":69,"y":748,"width":839,"height":11}},{"id":"cf4b571b-01b1-40e6-bf37-0a648109314d","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":61,"box":{"x":68,"y":763,"width":793,"height":11}},{"id":"f56abe43-d005-4910-a716-a5d233c03902","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":61,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"0a7baf34-2912-4e3b-b7f1-35e12df58798","block_type":"box","text":"the underlying security to meet its call obligation. There is also a risk, especially with preferred and debt securities","page_number":61,"box":{"x":68,"y":793,"width":818,"height":11}},{"id":"c7fce9ea-faf2-4b2d-8ffc-73182b63aef0","block_type":"box","text":"that lack sufficient liquidity, that the securities may not be available for purchase. If the purchase price exceeds the","page_number":61,"box":{"x":68,"y":808,"width":825,"height":11}},{"id":"e7ef14f4-7dea-4b9d-8c24-52f32d9c4263","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":61,"box":{"x":69,"y":823,"width":326,"height":11}},{"id":"69d2dfbc-eef1-43d3-8d97-6cffe501737a","block_type":"box","text":"Put Options.","page_number":61,"box":{"x":102,"y":846,"width":85,"height":11}},{"id":"3a846ae0-aa4e-48a3-8ec8-3a81affe483f","block_type":"box","text":"A Fund may purchase put options to seek to hedge against a decline in the value of its securities or","page_number":61,"box":{"x":194,"y":846,"width":712,"height":11}},{"id":"367a6c75-a400-4d2a-a799-07cd55a54017","block_type":"box","text":"to enhance its return. By buying a put option, a Fund acquires a right to sell the underlying securities or instruments","page_number":61,"box":{"x":68,"y":861,"width":828,"height":11}},{"id":"f9c130dd-02c1-42dc-9b38-909df60cf91c","block_type":"box","text":"at the exercise price, thus limiting the Fund’s risk of loss through a decline in the market value of the securities or","page_number":61,"box":{"x":69,"y":876,"width":816,"height":11}},{"id":"0756fbcd-70df-4270-9aa8-bdb746398382","block_type":"box","text":"instruments until the put option expires. The amount of any appreciation in the value of the underlying securities or","page_number":61,"box":{"x":70,"y":891,"width":820,"height":12}},{"id":"274546c1-9bdb-4d65-b1a1-295b34b32ba8","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":61,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"05d399cc-7fb9-4759-848c-4a86a5528a7d","block_type":"box","text":"II-21","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bd62ac43-72e5-4a3b-8f90-6c0e441d05b1","block_type":"box","text":"NM1026U-5982643-61/241","page_number":61,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"5d853f7e-7ba9-45a8-ae35-483dea56b2ef","block_type":"box","text":"costs. Prior to its expiration, a put option may be sold in a closing sale transaction and profit or loss from the sale","page_number":62,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"938eea58-10ee-44c7-90f3-d2ed1424a716","block_type":"box","text":"will depend on whether the amount received is more or less than the premium paid for the put option plus the related","page_number":62,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"87a856c4-c05e-4838-9288-83b9e964be45","block_type":"box","text":"transaction costs. A closing sale transaction cancels out a Fund’s position as the purchaser of an option by means of","page_number":62,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"c555a1bc-8108-4ea2-87f3-71acfe3fe1f2","block_type":"box","text":"an offsetting sale of an identical option prior to the expiration of the option it has purchased. A Fund also may","page_number":62,"box":{"x":69,"y":90,"width":785,"height":11}},{"id":"0b2d7a9e-f59c-4e6f-8257-57238ca1b49e","block_type":"box","text":"purchase uncovered put options.","page_number":62,"box":{"x":70,"y":105,"width":231,"height":11}},{"id":"9dea2e3e-fbe7-4e19-b53d-6f581eb2f2a4","block_type":"box","text":"A Fund also may write (i.e., sell) put options on the types of securities or instruments that may be held by the","page_number":62,"box":{"x":101,"y":128,"width":781,"height":11}},{"id":"0a667d22-fac4-472d-9609-b6b899d71d10","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":62,"box":{"x":70,"y":143,"width":675,"height":11}},{"id":"f0fd887a-69f4-4db0-b19a-9bf4b4f2229d","block_type":"box","text":"A Fund also may write (i.e., sell) uncovered put options on securities or instruments in which it may invest but","page_number":62,"box":{"x":101,"y":166,"width":783,"height":11}},{"id":"3f9dbafa-4a87-49a0-a31e-8fd459c20f03","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":62,"box":{"x":68,"y":181,"width":789,"height":11}},{"id":"82cafd58-084e-4937-8532-6ed644306b0d","block_type":"box","text":"collateral cash equal to the exercise value of the put option with the broker-dealer through which it made the","page_number":62,"box":{"x":69,"y":196,"width":773,"height":11}},{"id":"6b959dc0-4f8c-4fae-9282-6f22701130a5","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":62,"box":{"x":69,"y":211,"width":807,"height":11}},{"id":"089c9948-5f07-4cd8-8d32-cedfac241111","block_type":"box","text":"acquire such securities or instruments at a net cost below the current market value. A Fund has the obligation to buy","page_number":62,"box":{"x":69,"y":226,"width":835,"height":11}},{"id":"dac9c9fa-fe04-4fd7-bf77-25dbb9687c96","block_type":"box","text":"the securities or instruments at an agreed upon price if the price of the securities or instruments decreases below","page_number":62,"box":{"x":68,"y":241,"width":818,"height":11}},{"id":"64b36163-854a-4f6e-83b8-29d66d22af43","block_type":"box","text":"the exercise price. If the price of the securities or instruments increases during the option period, the option will","page_number":62,"box":{"x":68,"y":256,"width":800,"height":12}},{"id":"70350fd0-fc49-441e-9f67-2e4e047548a5","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":62,"box":{"x":69,"y":272,"width":814,"height":10}},{"id":"6959d4a7-64f2-41ff-9a01-e2f7f9f28ab9","block_type":"box","text":"the exercise price.","page_number":62,"box":{"x":68,"y":287,"width":130,"height":10}},{"id":"ad6854f6-06aa-4460-97d9-07996aa5e07b","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":62,"box":{"x":102,"y":309,"width":556,"height":11}},{"id":"a75ebe21-b830-4f99-b3f7-5fc19ecbe0b0","block_type":"box","text":"The following information relates","page_number":62,"box":{"x":664,"y":309,"width":232,"height":11}},{"id":"ca9fb4bd-d853-4167-b38d-47c67ca4f442","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":62,"box":{"x":68,"y":324,"width":784,"height":12}},{"id":"cb4cf5fc-b4ce-4d03-9030-3b388844a0dd","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":62,"box":{"x":69,"y":339,"width":840,"height":12}},{"id":"b0e1d8c7-ed30-4aae-9746-c37648199a3b","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":62,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"00023b1a-6ac1-4ffd-bb78-c9d30159d592","block_type":"box","text":"it holds no longer have a sufficient remaining principal balance for this purpose. Should this occur, a Fund will","page_number":62,"box":{"x":70,"y":370,"width":781,"height":11}},{"id":"a4bf540d-7b9b-48ef-8166-447d195301ef","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":62,"box":{"x":70,"y":385,"width":803,"height":11}},{"id":"edcd2921-5eac-4c46-b3a1-82ef9e0d4d3f","block_type":"box","text":"market in order to maintain its “cover.”","page_number":62,"box":{"x":69,"y":400,"width":277,"height":9}},{"id":"0fff5ca3-76ed-4b3a-ad01-a9899b7a1b0b","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":62,"box":{"x":101,"y":423,"width":807,"height":11}},{"id":"b918a0ac-48c6-4eaa-8e27-9b954bdba75a","block_type":"box","text":"to represent cover for the option in the event of a decline in the GNMA coupon rate at which new pools are originated","page_number":62,"box":{"x":68,"y":438,"width":835,"height":11}},{"id":"2ece99d4-8d13-4c0e-a626-5754e6a3f307","block_type":"box","text":"under the FHA/VA loan ceiling in effect at any given time. If this should occur, a Fund will no longer be covered, and","page_number":62,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"f4183b48-210b-4a28-86ca-06fdef5d6064","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":62,"box":{"x":68,"y":468,"width":784,"height":11}},{"id":"684363e7-9469-415a-b953-256b17b565be","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":62,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"5bf7dead-d7f7-4373-9c14-0025bdccddab","block_type":"box","text":"and incur transaction costs.","page_number":62,"box":{"x":69,"y":498,"width":197,"height":9}},{"id":"a8607d2f-5afd-46e1-aeb2-19d945051821","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":62,"box":{"x":102,"y":521,"width":235,"height":11}},{"id":"62364543-a6c9-4d65-830e-4200217f4fc7","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":62,"box":{"x":343,"y":521,"width":563,"height":11}},{"id":"a3ece430-1bcd-4f09-aa98-40e1e980fd08","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":62,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"2ca27f72-7de2-4247-b78b-3600a680d2cb","block_type":"box","text":"designated future time on specified terms. A Fund may write (i.e., sell) and purchase put and call swaptions.","page_number":62,"box":{"x":69,"y":551,"width":773,"height":11}},{"id":"8787f5d9-517f-41c6-a1b8-f7fb752e9fe5","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":62,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"ab823aef-0410-48a8-93a4-3db6cccb1d5d","block_type":"box","text":"it writes a swaption than it will incur when it purchases a swaption. When a Fund purchases a swaption, it risks","page_number":62,"box":{"x":70,"y":582,"width":793,"height":10}},{"id":"7313ef3d-7271-40b5-bf4c-87223b66aa31","block_type":"box","text":"losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However,","page_number":62,"box":{"x":70,"y":596,"width":802,"height":12}},{"id":"aa973c61-8a68-450e-a9a8-30dfd07ff3bc","block_type":"box","text":"when a Fund writes a swaption, upon exercise of the option the Fund will become obligated according to the terms of","page_number":62,"box":{"x":68,"y":612,"width":836,"height":11}},{"id":"70fe7e59-04bb-4a4b-9763-dc7254219be5","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":62,"box":{"x":68,"y":627,"width":832,"height":11}},{"id":"5a89e1cc-21f1-4e38-bb19-be7982f758f9","block_type":"box","text":"required, to be cleared.","page_number":62,"box":{"x":69,"y":642,"width":165,"height":11}},{"id":"0901f385-8af7-4405-9f28-23a55c56b171","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":62,"box":{"x":101,"y":665,"width":760,"height":11}},{"id":"23ce68fa-20eb-469d-b8cd-83131f3f64e0","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":62,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"64353a92-3b2c-485b-ae68-6a29137eafe2","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":62,"box":{"x":69,"y":695,"width":706,"height":11}},{"id":"00f75f34-3171-4091-8465-d08c2ceb770c","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":62,"box":{"x":102,"y":718,"width":805,"height":11}},{"id":"2c70676f-4fe6-43ff-9c8a-a83c9031f945","block_type":"box","text":"Derivatives” above.","page_number":62,"box":{"x":70,"y":733,"width":135,"height":9}},{"id":"1a5f4cd2-7211-4113-9754-62dd18feb7f3","block_type":"box","text":"FLEX Options.","page_number":62,"box":{"x":102,"y":755,"width":96,"height":11}},{"id":"d9c0d179-ad19-41f5-8cf6-ec874b72ce2d","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":62,"box":{"x":206,"y":755,"width":702,"height":11}},{"id":"7685d6b3-5c35-4768-a351-beeac0abd40d","block_type":"box","text":"are guaranteed for settlement by the Options Clearing Corporation (“OCC”). FLEX Options are listed on a U.S. national","page_number":62,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"287c3e96-d678-4462-8d6c-7107cc918e55","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":62,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"fcc8ef8c-747a-4747-96d2-c21b6a62d95e","block_type":"box","text":"exercise prices, exercise styles (i.e., American-style, exercisable any time prior to the expiration date, or European","page_number":62,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"847657a5-0c24-42a1-9308-8ec474eebc7f","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":62,"box":{"x":69,"y":816,"width":768,"height":11}},{"id":"a279f582-ac59-44a6-904e-910fc461a90a","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":62,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"29163a71-6f43-4eb5-a690-14e7ed8a0aed","block_type":"box","text":"option contract entitles the holder thereof to purchase (for the call options) or sell (for the put options) shares of the","page_number":62,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"1fdc7e56-2d65-4ff6-a5a9-89e607066ca1","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":62,"box":{"x":69,"y":861,"width":792,"height":11}},{"id":"817b03f9-bd70-49e3-bc51-d77dd41624da","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":62,"box":{"x":70,"y":876,"width":802,"height":11}},{"id":"36055880-fff1-4350-99a9-0e2eb0192124","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":62,"box":{"x":69,"y":891,"width":806,"height":11}},{"id":"c50fce48-d98d-4c54-aad2-cc289c620435","block_type":"box","text":"FLEX Option’s expiration date.","page_number":62,"box":{"x":70,"y":906,"width":211,"height":11}},{"id":"061cf5b5-e0b0-438e-acee-490f3de1d55c","block_type":"box","text":"II-22","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6461cd06-1d9a-4dcc-becc-7b4b1dfeba34","block_type":"box","text":"NM1026U-5982643-62/241","page_number":62,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"935bbbe8-8a41-412d-9f9f-6cda9c271819","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":63,"box":{"x":101,"y":45,"width":783,"height":11}},{"id":"afe8e5ae-d129-43ab-bcf2-adec713e1a54","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":63,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"03e36fa6-bab1-4ee2-be9b-43fafd58942b","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":63,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"c082a587-324a-4c3b-9b3e-86fa2f75a225","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":63,"box":{"x":69,"y":90,"width":814,"height":11}},{"id":"7c5daf6e-322a-42f7-b0dd-f7dbea2af7a9","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":63,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"2f085e12-31e4-4c56-bafe-74cd1008f8c8","block_type":"box","text":"FLEX Options contracts.","page_number":63,"box":{"x":70,"y":120,"width":166,"height":11}},{"id":"8b81f236-713b-46c5-806c-f9a53d9bb6f5","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":63,"box":{"x":102,"y":143,"width":748,"height":11}},{"id":"851e6e11-b58e-46b8-aedf-848d34035e5b","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":63,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"aa938bd7-b828-4a58-8550-e5e68ddbda10","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":63,"box":{"x":69,"y":173,"width":759,"height":11}},{"id":"5677562e-cf99-4564-b250-98898045f6f1","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":63,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"a1350986-938e-4cff-8e0d-429079f9a8f8","block_type":"box","text":"liquidation of the issuer of the underlying security. According to the OCC’s by-laws, the nature and extent of any such","page_number":63,"box":{"x":70,"y":203,"width":829,"height":12}},{"id":"7175d404-9141-49e5-a80f-de785b880d78","block_type":"box","text":"adjustment is to be determined by the OCC’s Securities Committee, in light of the circumstances known to it at the","page_number":63,"box":{"x":69,"y":218,"width":821,"height":12}},{"id":"07ab14e7-3ad8-4a8c-bb55-c4a643d51ee3","block_type":"box","text":"time such determination is made, based on its judgment as to what is appropriate for the protection of investors and","page_number":63,"box":{"x":68,"y":234,"width":835,"height":11}},{"id":"50ab1866-70eb-4559-af18-6361eb300471","block_type":"box","text":"the public interest, taking into account such factors as fairness to holders and writers (or purchasers and sellers) of","page_number":63,"box":{"x":68,"y":249,"width":829,"height":11}},{"id":"076ca3b7-e6f6-4bc1-9be3-44694dca3655","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":63,"box":{"x":68,"y":264,"width":753,"height":11}},{"id":"f7233e4f-11e3-4e62-a58b-b15a614853db","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":63,"box":{"x":70,"y":279,"width":806,"height":11}},{"id":"bc40a717-a9fc-43b9-8c49-761b19c66b60","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":63,"box":{"x":69,"y":294,"width":593,"height":11}},{"id":"0c3699e3-4161-4512-9c6e-a7e0f7ce0a26","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":63,"box":{"x":135,"y":317,"width":298,"height":11}},{"id":"2f118674-7f22-436d-97b4-ef3c4df02de2","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":63,"box":{"x":435,"y":317,"width":461,"height":11}},{"id":"ac940657-cc6c-48d5-b4a4-ff8bfd4ef70a","block_type":"box","text":"on an exchange-traded fund (“ETF”) or the S&P 500 Index (together with such ETF, a “Reference Asset”). As","page_number":63,"box":{"x":102,"y":332,"width":768,"height":11}},{"id":"bfdba00d-8bd0-471e-8942-bcd83af0725a","block_type":"box","text":"such, the value of a Fund’s FLEX Options will fluctuate with changes in the value of the securities held by the","page_number":63,"box":{"x":102,"y":347,"width":775,"height":11}},{"id":"12da276e-763b-403e-ad70-a5157dbdc912","block_type":"box","text":"ETF, and thus the ETF’s share price. In addition to the value of the ETF, the value of an option, in general, will","page_number":63,"box":{"x":102,"y":362,"width":777,"height":11}},{"id":"d636fe84-d289-44fb-a4cd-5526ed6639db","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":63,"box":{"x":102,"y":377,"width":799,"height":12}},{"id":"b0d865c2-87be-4c69-94cb-75a992d9d892","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":63,"box":{"x":102,"y":392,"width":777,"height":12}},{"id":"2057a919-e292-420d-bff0-fa561d4b576f","block_type":"box","text":"expire unexercised have no value.","page_number":63,"box":{"x":101,"y":408,"width":240,"height":10}},{"id":"6c259319-8404-4176-a01b-7167c1e22dc3","block_type":"box","text":"The puts and calls on the Reference Asset entitle the purchaser of the option the right to purchase (for a","page_number":63,"box":{"x":134,"y":430,"width":747,"height":11}},{"id":"a51c8f9f-dfbb-4670-8814-7508371d75c4","block_type":"box","text":"call option) or sell (for a put option) the Reference Asset at a predetermined specified price (the “strike price”).","page_number":63,"box":{"x":101,"y":445,"width":792,"height":11}},{"id":"6b5d1205-36b3-4f80-88ce-0f135dd92f1a","block_type":"box","text":"When a Fund writes a call on the Reference Asset, it receives a premium and agrees that the purchaser of the","page_number":63,"box":{"x":101,"y":460,"width":786,"height":12}},{"id":"5c848843-e8b2-4c23-978e-b921e74cf688","block_type":"box","text":"call, upon exercise of the call, will receive from the Fund the delivery of a specified number of shares of the ETF","page_number":63,"box":{"x":101,"y":475,"width":798,"height":12}},{"id":"bc363abe-4e04-4864-9844-4f770f85dd2d","block_type":"box","text":"in exchange for the strike price. When a Fund buys a call on the Reference Asset, it pays a premium and has the","page_number":63,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"04098c1d-0632-4f2f-b321-a98f3d521f38","block_type":"box","text":"same rights to such call as indicated above. When a Fund buys a put on the Reference Asset, it pays a premium","page_number":63,"box":{"x":102,"y":506,"width":800,"height":11}},{"id":"f3666771-6310-4458-8326-873d5e8bf10f","block_type":"box","text":"and has the right to require the seller of the put, upon the Fund’s exercise of the put, to deliver the specified","page_number":63,"box":{"x":102,"y":521,"width":774,"height":11}},{"id":"f701fe7f-2f2d-4eb0-8053-8e8639ef01e3","block_type":"box","text":"number of shares of the ETF in exchange for the strike price. When a Fund writes a put on the Reference Asset,","page_number":63,"box":{"x":102,"y":536,"width":793,"height":11}},{"id":"e0387069-bd7a-4c5d-a9b7-dec061b70b94","block_type":"box","text":"it receives a premium and the purchaser of the put has the right to require the Fund to deliver the specified","page_number":63,"box":{"x":102,"y":551,"width":764,"height":11}},{"id":"1c856b11-930e-4422-bdec-bd36f39d872e","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":63,"box":{"x":102,"y":566,"width":430,"height":11}},{"id":"bf004af9-dac4-40cc-b657-b89b65c003fe","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":63,"box":{"x":134,"y":589,"width":740,"height":11}},{"id":"dfe671ef-9eab-4f7f-89c5-a37b1c4001d7","block_type":"box","text":"FLEX Options that are cash-settled. Cash-settled options give the holder the right to receive an amount (or owe","page_number":63,"box":{"x":102,"y":604,"width":787,"height":11}},{"id":"3c2df713-acb7-416b-b2a0-aaba4fdda46c","block_type":"box","text":"an amount) of cash upon the exercise of the option. Gain or loss depends on changes in the value of the ETF’s","page_number":63,"box":{"x":102,"y":619,"width":790,"height":11}},{"id":"a435952a-1fe4-4411-83b4-4920e143eb6c","block_type":"box","text":"share price relative to the strike price for a given option contract. The amount of cash is equal to the difference","page_number":63,"box":{"x":102,"y":634,"width":793,"height":12}},{"id":"c81f2608-caa9-47a3-b648-c2e0ce36cc8c","block_type":"box","text":"between the closing price of the ETF’s share price and the exercise price of the option contract times a specified","page_number":63,"box":{"x":102,"y":649,"width":802,"height":12}},{"id":"02023b64-cdac-4154-9054-6838974c12e7","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":63,"box":{"x":102,"y":664,"width":635,"height":12}},{"id":"c469d2a6-707a-454f-bf2b-171063ef7cab","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":63,"box":{"x":135,"y":687,"width":297,"height":11}},{"id":"75218a28-b288-4189-9b98-2688c870ab75","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":63,"box":{"x":433,"y":687,"width":448,"height":11}},{"id":"fb48f64e-2847-4967-81d9-fc70d5a0acac","block_type":"box","text":"closing value for that day is available, it runs the risk that the level of the Reference Asset may subsequently","page_number":63,"box":{"x":101,"y":702,"width":777,"height":12}},{"id":"f1f5e9e7-74b3-48cb-9cd6-0449dc3a7ebe","block_type":"box","text":"change. If such a change causes the exercised option to fall out of the money, the applicable Fund will be","page_number":63,"box":{"x":101,"y":717,"width":753,"height":12}},{"id":"2ba245e9-ed22-47ec-90bc-83a988776669","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":63,"box":{"x":102,"y":732,"width":780,"height":12}},{"id":"109d362c-246b-4d82-be7f-3b01dbf770d3","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":63,"box":{"x":102,"y":748,"width":387,"height":11}},{"id":"469d1843-5b07-4637-9194-64d4ff319096","block_type":"box","text":"Foreign Exchange Transactions.","page_number":63,"box":{"x":102,"y":771,"width":222,"height":11}},{"id":"be02ff53-fce9-4740-9274-933d080d4280","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":63,"box":{"x":101,"y":793,"width":807,"height":11}},{"id":"aa72a753-900d-400a-b6df-67232152de68","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":63,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"e60974f2-e16a-4e0e-88f5-d931e56df593","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":63,"box":{"x":70,"y":823,"width":821,"height":12}},{"id":"9fda8289-25a3-4461-a289-0f55196e5d20","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":63,"box":{"x":69,"y":838,"width":792,"height":12}},{"id":"ee7a3d42-41d6-4269-9f0c-4961bc0b6bef","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":63,"box":{"x":102,"y":861,"width":790,"height":11}},{"id":"b039019a-c361-423f-8e30-1b2402c57b7f","block_type":"box","text":"Fund, sold by a Fund but not yet delivered, or committed or anticipated to be purchased by a Fund. As an illustration,","page_number":63,"box":{"x":70,"y":876,"width":830,"height":11}},{"id":"f75f974c-8185-4a6b-8e88-9cc155bb7578","block_type":"box","text":"a Fund may use such techniques to hedge the stated value in U.S. dollars of an investment in a yen-denominated","page_number":63,"box":{"x":69,"y":891,"width":808,"height":12}},{"id":"fc9ade72-cf02-4ad8-a749-b8b1434cedcb","block_type":"box","text":"security. For example, the Fund may purchase a foreign currency put option enabling it to sell a specified amount of","page_number":63,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"c28ec596-2179-4cce-a3b8-16626f360697","block_type":"box","text":"II-23","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"054621c3-dc9c-4668-8a7e-e4375123f47a","block_type":"box","text":"NM1026U-5982643-63/241","page_number":63,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"376f9d85-31d1-4530-b441-be43ff243ac7","block_type":"box","text":"yen for dollars at a specified price by a future date. To the extent the hedge is successful, a loss in the value of the","page_number":64,"box":{"x":68,"y":45,"width":823,"height":11}},{"id":"65a20c21-b776-4736-99c5-3ac50e30517b","block_type":"box","text":"yen relative to the dollar will tend to be offset by an increase in the value of the put option. To offset, in whole or in","page_number":64,"box":{"x":68,"y":60,"width":821,"height":11}},{"id":"a3622280-54e4-4692-886a-ec18b47ddc24","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":64,"box":{"x":70,"y":75,"width":813,"height":11}},{"id":"272f1007-ee9a-4d30-83bb-e99585a70cc4","block_type":"box","text":"sell a specified amount of yen for dollars at a specified price by a future date (a technique called a “straddle”). By","page_number":64,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"d6644816-4d86-4f33-ac47-709f112c65a1","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":64,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"aab21100-d13a-4cfb-9109-f0abb8c39747","block_type":"box","text":"the relative value of the yen to the dollar. “Straddles” of the type that may be used by a Fund are considered hedging","page_number":64,"box":{"x":68,"y":120,"width":836,"height":12}},{"id":"a23a22be-3e87-4099-b0ee-415a153c180d","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":64,"box":{"x":68,"y":135,"width":794,"height":12}},{"id":"1d67cbe5-c274-4a02-9b6a-94d62a84c145","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":64,"box":{"x":102,"y":158,"width":805,"height":11}},{"id":"42305a9e-c285-4411-b13e-fbdc503e5a58","block_type":"box","text":"use of Currency Instruments to effect hedging strategies is intended to reduce the volatility of the NAV of the Fund’s","page_number":64,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"605eaff5-cd04-4503-9cb2-a53183a7b693","block_type":"box","text":"shares; however, the use of such hedging strategies will not prevent the NAV of the Fund’s shares from fluctuating.","page_number":64,"box":{"x":69,"y":188,"width":819,"height":12}},{"id":"10189c5b-aeca-4c04-a7a7-6c17ec71be90","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":64,"box":{"x":70,"y":203,"width":773,"height":12}},{"id":"7c7e7d29-f335-47fe-8978-0d38c90ea673","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":64,"box":{"x":69,"y":219,"width":814,"height":11}},{"id":"6034f856-ae46-42a8-b466-2b3cadca5059","block_type":"box","text":"accurately predicted and that the Fund’s hedging strategies will be ineffective. To the extent that a Fund hedges","page_number":64,"box":{"x":69,"y":234,"width":796,"height":11}},{"id":"40447c44-b249-4534-a051-c66323b7ae52","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":64,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"46a0f99e-9b59-4cce-b190-9e3819a52fad","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":64,"box":{"x":70,"y":264,"width":798,"height":11}},{"id":"7960991c-d924-4183-adc7-21204ef57080","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":64,"box":{"x":69,"y":279,"width":493,"height":11}},{"id":"770f1c7d-396d-4dc6-a8db-8012e1b3c486","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":64,"box":{"x":102,"y":302,"width":738,"height":11}},{"id":"403b61a4-1772-4168-9e8e-a8783935c678","block_type":"box","text":"domestic bank, or foreign or domestic securities dealer, to make or take future delivery of a specified amount of a","page_number":64,"box":{"x":69,"y":317,"width":814,"height":11}},{"id":"6eb06bd9-83c6-481f-bae8-284852f4bd28","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":64,"box":{"x":70,"y":332,"width":819,"height":11}},{"id":"debe2faf-3919-46ed-9320-c865e9e8d100","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":64,"box":{"x":69,"y":347,"width":834,"height":11}},{"id":"384d45e2-152d-4414-9c01-6a008d6a665c","block_type":"box","text":"or dealers have refused to quote prices for such forward contracts or have quoted prices with an unusually wide","page_number":64,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"3d39d154-7e2f-478b-a0a6-1ef50031b581","block_type":"box","text":"spread between the price at which the bank or dealer is prepared to buy and that at which it is prepared to sell.","page_number":64,"box":{"x":69,"y":377,"width":794,"height":11}},{"id":"7b99a47f-56db-475f-bd29-cae062af41f0","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":64,"box":{"x":69,"y":392,"width":841,"height":12}},{"id":"b38a5be6-1ff3-468d-8460-fa7be976c8a9","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":64,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"e50447b4-10ff-4f2d-bef1-3607abcceb11","block_type":"box","text":"would deprive the Fund of any profit potential or force the Fund to cover its commitments for resale, if any, at the","page_number":64,"box":{"x":68,"y":423,"width":805,"height":11}},{"id":"63ac9997-3870-41c0-9db0-37b7d86bf043","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":64,"box":{"x":68,"y":438,"width":401,"height":11}},{"id":"abaa74ba-591a-45b1-adcb-27c2d7c86065","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":64,"box":{"x":102,"y":460,"width":738,"height":12}},{"id":"872c8d4a-5b49-40da-97b4-9b74829de672","block_type":"box","text":"anticipated, in the event that (i) the currency exchange rate movement is so generally anticipated that the Fund is not","page_number":64,"box":{"x":69,"y":476,"width":837,"height":11}},{"id":"7262a171-0d60-4587-b9e0-e5bffe22d898","block_type":"box","text":"able to enter into a hedging transaction at an effective price, or (ii) the currency exchange rate movement relates to a","page_number":64,"box":{"x":69,"y":491,"width":837,"height":11}},{"id":"ec6e13e8-b473-4b12-aee0-e95f967551a9","block_type":"box","text":"market with respect to which Currency Instruments are not available and it is not possible to engage in effective","page_number":64,"box":{"x":69,"y":506,"width":800,"height":11}},{"id":"6a68be0f-eee6-404d-8b1f-8dd3e603154f","block_type":"box","text":"foreign currency hedging. The cost to a Fund of engaging in foreign currency transactions varies with such factors as","page_number":64,"box":{"x":68,"y":521,"width":829,"height":11}},{"id":"99f4acd3-d0db-4d59-9717-d9d1480ef7da","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":64,"box":{"x":68,"y":536,"width":753,"height":11}},{"id":"a84976a5-1b70-4bfb-8aaa-db09263830ae","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":64,"box":{"x":68,"y":551,"width":811,"height":11}},{"id":"49cf0263-19f1-46f0-89bc-c7057f3cfe6d","block_type":"box","text":"involved.","page_number":64,"box":{"x":70,"y":566,"width":59,"height":9}},{"id":"95905f81-718e-4e94-8dee-3a16f2b0b30e","block_type":"box","text":"A Fund will not hedge a currency in excess of the aggregate market value of the securities that it owns (including","page_number":64,"box":{"x":101,"y":589,"width":803,"height":11}},{"id":"1e65f45c-5894-4f42-a95b-9afa52a8ba20","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":64,"box":{"x":69,"y":604,"width":785,"height":11}},{"id":"4baae9bd-1b69-40e6-ba8a-3cbf1989cbce","block_type":"box","text":"denominated in such currency.","page_number":64,"box":{"x":69,"y":619,"width":216,"height":11}},{"id":"cb3a0243-5c5a-4c0f-8b05-b63a8335f285","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":64,"box":{"x":102,"y":642,"width":254,"height":11}},{"id":"c8734764-71d8-42e9-9b7a-75ee8d6716db","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":64,"box":{"x":364,"y":642,"width":527,"height":11}},{"id":"f304bc26-b932-4dd9-bd3d-a48473a80b04","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":64,"box":{"x":69,"y":657,"width":834,"height":11}},{"id":"eaa06f06-4d1b-4b7e-a9b9-b0ecc5d57013","block_type":"box","text":"transactions are similar but are settled in the current, or “spot”, market. A Fund will enter into foreign exchange","page_number":64,"box":{"x":68,"y":672,"width":798,"height":11}},{"id":"df1f5172-099d-4f82-875d-a1930bf3c2b2","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":64,"box":{"x":68,"y":687,"width":817,"height":11}},{"id":"df19ca05-4247-4eed-a8ee-1efceeb43672","block_type":"box","text":"Funds, to seek to enhance returns. FX forwards involve substantial currency risk, credit risk and liquidity risk. A Fund","page_number":64,"box":{"x":70,"y":702,"width":830,"height":11}},{"id":"a73a5b8a-4608-43e8-a8f2-a2dda339bc48","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":64,"box":{"x":69,"y":717,"width":774,"height":12}},{"id":"e7c2d7d4-6438-4635-9b68-a27212e42cda","block_type":"box","text":"purchasing a currency needed to settle a security transaction or selling a currency in which the Fund has received or","page_number":64,"box":{"x":70,"y":733,"width":828,"height":11}},{"id":"47569957-548a-40b5-bc0a-d74895bfe15c","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":64,"box":{"x":69,"y":748,"width":830,"height":11}},{"id":"bea9e91a-4c3d-4f23-8c67-7b5430663c38","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":64,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"35dc1190-6f46-412f-8503-13bd1a0763e7","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":64,"box":{"x":69,"y":778,"width":819,"height":11}},{"id":"918175b3-77b7-4a95-b9ef-db556831be4a","block_type":"box","text":"also hedge a currency by entering into a transaction in a Currency Instrument denominated in a currency other than","page_number":64,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"159999e3-1b31-4f9a-9f3a-d0b2b70779dd","block_type":"box","text":"the currency being hedged (a “cross-hedge”). A Fund will only enter into a cross-hedge if the Manager believes that","page_number":64,"box":{"x":68,"y":808,"width":819,"height":11}},{"id":"6d1078a3-3af6-4fcd-ae79-d85dea316ff8","block_type":"box","text":"(i) there is a demonstrably high correlation between the currency in which the cross-hedge is denominated and the","page_number":64,"box":{"x":69,"y":823,"width":814,"height":12}},{"id":"5f6f18a3-3ff5-49e1-94a7-00e228890a89","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":64,"box":{"x":69,"y":839,"width":745,"height":11}},{"id":"12599626-e88f-4735-ad3c-71e4bb4cbd99","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":64,"box":{"x":69,"y":853,"width":832,"height":12}},{"id":"4bd7bf66-375e-4e69-90e5-17aa338bb29c","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":64,"box":{"x":69,"y":869,"width":428,"height":11}},{"id":"a290d1f1-d8b4-4657-b87e-308e1cdea9c8","block_type":"box","text":"A Fund may also engage in proxy hedging transactions to reduce the effect of currency fluctuations on the value","page_number":64,"box":{"x":101,"y":891,"width":797,"height":12}},{"id":"bc155815-997d-4c6e-b37f-7eb93b57af3e","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":64,"box":{"x":69,"y":906,"width":829,"height":12}},{"id":"21f27a38-c9f6-4c5a-8cda-865cc07e3241","block_type":"box","text":"II-24","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7da3ac8c-b250-4ea1-9ebd-c8d0182091af","block_type":"box","text":"NM1026U-5982643-64/241","page_number":64,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"7127eec7-c561-43e5-9d45-2e21591a020c","block_type":"box","text":"Fund is exposed is difficult to hedge, or to hedge against the U.S. dollar. Proxy hedging entails entering into a forward","page_number":65,"box":{"x":70,"y":45,"width":838,"height":11}},{"id":"04818fbd-3387-425b-be92-a5050a4751b0","block_type":"box","text":"contract to sell a currency whose changes in value are generally considered to be linked to a currency or currencies","page_number":65,"box":{"x":69,"y":60,"width":823,"height":11}},{"id":"fcac56db-3d88-4146-ad56-7135d5ed4307","block_type":"box","text":"in which some or all of the Fund’s securities are, or are expected to be, denominated, and to buy U.S. dollars. Proxy","page_number":65,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"b1cef6ca-56eb-43e5-87de-7c2f1ff1b929","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":65,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"3eb02b84-cd94-465e-979f-3633c4776ae1","block_type":"box","text":"transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a","page_number":65,"box":{"x":68,"y":105,"width":798,"height":11}},{"id":"16b524a2-7d31-4d62-aee6-f8938bc012c0","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":65,"box":{"x":69,"y":120,"width":819,"height":12}},{"id":"fc0551a0-44fe-43ca-8d77-b9660fcfac82","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":65,"box":{"x":69,"y":136,"width":691,"height":11}},{"id":"23c7df7d-7486-49e7-9695-092077c36e49","block_type":"box","text":"A Fund may also cross-hedge currencies by entering into forward contracts to sell one or more currencies that","page_number":65,"box":{"x":101,"y":158,"width":785,"height":11}},{"id":"bc9c4071-97a6-44ee-af5f-230c6e64195d","block_type":"box","text":"are expected to decline in value relative to other currencies to which the Fund has or in which the Fund expects to","page_number":65,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"7cb2d69f-005e-48ec-baa0-1e5dcf75bd1c","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":65,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"79f49fc7-31fe-49f6-9544-bf9a9c53dd97","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":65,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"d28df534-8d8b-42e3-b09b-da573e0133d1","block_type":"box","text":"Fund would sell Canadian dollars to reduce its exposure to that currency and buy Japanese yen. This strategy would","page_number":65,"box":{"x":70,"y":219,"width":823,"height":11}},{"id":"e43a721a-bfe2-435c-bd9a-cc824d778140","block_type":"box","text":"be a hedge against a decline in the value of Canadian dollars, although it would expose the Fund to declines in the","page_number":65,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"370fc04d-933d-4454-828f-4b0377f47a25","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":65,"box":{"x":68,"y":249,"width":372,"height":11}},{"id":"9f5fe28a-9379-4856-abee-c56bffc8f9d2","block_type":"box","text":"Some of the forward non-U.S. currency contracts entered into by the Funds are classified as non-deliverable","page_number":65,"box":{"x":102,"y":271,"width":768,"height":12}},{"id":"b7b74234-b799-425f-98f6-072a166e7bd9","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":65,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"a511826a-3330-43cb-be2d-2e46a8408c3e","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":65,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"8e207c42-916e-435a-84cb-a1cfb3d622fa","block_type":"box","text":"the difference between the agreed upon exchange rate and the spot rate at the time of settlement, for an agreed","page_number":65,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"7a53c13c-18c4-4b09-b704-86f30ccb3c40","block_type":"box","text":"upon notional amount of funds. All NDFs have a fixing date and a settlement date. The fixing date is the date at which","page_number":65,"box":{"x":69,"y":332,"width":839,"height":11}},{"id":"a2a8bb0c-6ec6-4743-8eca-77017fe19bb1","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":65,"box":{"x":68,"y":347,"width":812,"height":11}},{"id":"9e689921-fe91-42d3-b518-5014a449cddc","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":65,"box":{"x":69,"y":362,"width":821,"height":11}},{"id":"e23d3c29-a86e-43a8-b047-ad43f3242d8b","block_type":"box","text":"commonly quoted for time periods of one month up to two years, and are normally quoted and settled in U.S. dollars.","page_number":65,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"46ced761-cd12-43aa-9182-a42f854b9fd6","block_type":"box","text":"They are often used to gain exposure to and/or hedge exposure to foreign currencies that are not internationally","page_number":65,"box":{"x":68,"y":392,"width":802,"height":12}},{"id":"77c5af24-02a8-4321-bbd8-3de9de9d7c3a","block_type":"box","text":"traded.","page_number":65,"box":{"x":68,"y":408,"width":49,"height":8}},{"id":"e81ea5c0-f700-4d9b-af4d-c5b5d71cf585","block_type":"box","text":"Currency Futures.","page_number":65,"box":{"x":102,"y":430,"width":123,"height":11}},{"id":"96275119-f7e6-4aa3-bf23-e15e91f35f98","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":65,"box":{"x":232,"y":430,"width":654,"height":11}},{"id":"8a855e0c-de58-419a-8566-2f2d691d7b78","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":65,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"994503b2-ff44-4c66-84de-a178c90f5aef","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":65,"box":{"x":69,"y":460,"width":774,"height":12}},{"id":"0405dccf-80a1-4abd-bfad-4dc8f31ad29a","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":65,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"471ef105-d8f5-4bb7-b0a4-fd9d115a5dc4","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":65,"box":{"x":69,"y":491,"width":269,"height":9}},{"id":"69efabc7-0fdd-469a-9041-d3923402b361","block_type":"box","text":"Currency Options.","page_number":65,"box":{"x":102,"y":513,"width":125,"height":11}},{"id":"2dd8b14b-1f4e-4f07-87c6-c477122ca3a9","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":65,"box":{"x":233,"y":513,"width":654,"height":12}},{"id":"e9ed1991-21ac-475f-837e-ef4029ae7328","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":65,"box":{"x":68,"y":528,"width":776,"height":12}},{"id":"67da721e-f79d-46e0-9f15-7bdefec5f35a","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":65,"box":{"x":70,"y":543,"width":825,"height":12}},{"id":"859e65d5-d841-43f0-9ca9-3fc7ac7c5b7b","block_type":"box","text":"securities. For example, in consideration for an option premium the writer of a currency option is obligated to sell (in","page_number":65,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"6ee8e9c0-a9db-4db6-a72d-537175d2a426","block_type":"box","text":"the case of a call option) or purchase (in the case of a put option) a specified amount of a specified currency on or","page_number":65,"box":{"x":68,"y":574,"width":820,"height":11}},{"id":"31518bb5-8796-45c8-8628-9303dd77c936","block_type":"box","text":"before the expiration date for a specified amount of another currency. A Fund may engage in transactions in options","page_number":65,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"3d6b2ffc-c6f3-4a20-9739-61a738047d40","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":65,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"5d1d443c-4b4b-4e9c-9ff6-2a97307337d8","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":65,"box":{"x":69,"y":619,"width":813,"height":11}},{"id":"8d2c3ddc-fd32-4f74-8f78-cd022a116cd7","block_type":"box","text":"structures and/or expirations. Where a Fund is permitted to write currency options, it may write covered call options","page_number":65,"box":{"x":69,"y":634,"width":826,"height":11}},{"id":"7011d586-7367-4cde-8925-49f12387da59","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":65,"box":{"x":69,"y":649,"width":776,"height":12}},{"id":"a9cf5d5a-cfcf-49ba-a81d-48f87861762c","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":65,"box":{"x":69,"y":665,"width":483,"height":11}},{"id":"8a5ea0bd-af46-4f4c-9a39-0050492aeeae","block_type":"box","text":"Currency Swaps.","page_number":65,"box":{"x":102,"y":687,"width":117,"height":11}},{"id":"8a3fe41c-1b58-420c-bb4b-8e067609592f","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":65,"box":{"x":225,"y":687,"width":652,"height":11}},{"id":"eab62dff-8dd8-4114-a8f7-880f552f237b","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":65,"box":{"x":69,"y":702,"width":799,"height":12}},{"id":"68b5bf83-f90c-4495-9dc7-b78ce4349b89","block_type":"box","text":"second currency on a spot basis and sold for the second currency on a forward basis. Currency swaps involve the","page_number":65,"box":{"x":69,"y":717,"width":812,"height":12}},{"id":"34ee270a-2339-451f-bba1-24b732bc8de2","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":65,"box":{"x":69,"y":732,"width":836,"height":12}},{"id":"31bf50bc-4c8f-428d-9946-0c25290e357d","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":65,"box":{"x":69,"y":748,"width":800,"height":11}},{"id":"97c42d8b-e4c6-436f-9257-4a006abaecb0","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":65,"box":{"x":69,"y":763,"width":810,"height":11}},{"id":"fd5a0889-fa1f-4322-bee6-2758ac2e366f","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":65,"box":{"x":69,"y":778,"width":393,"height":11}},{"id":"974df473-8ac7-4aae-b7c3-217d90b4a119","block_type":"box","text":"Digital Asset Exposure.","page_number":65,"box":{"x":102,"y":801,"width":170,"height":11}},{"id":"f49edfc2-97eb-4cdc-ac94-4aa1a87ffee0","block_type":"box","text":"Digital assets, such as bitcoin and ether, are created and transmitted through the","page_number":65,"box":{"x":279,"y":801,"width":582,"height":11}},{"id":"0c06856f-1d89-417b-b55c-12c4a630ae45","block_type":"box","text":"operations of peer-to-peer networks of computers, known as nodes, that operate on cryptographic computer-code","page_number":65,"box":{"x":69,"y":816,"width":806,"height":11}},{"id":"d5028608-a3d0-448b-87f4-f0edccc5fcb8","block_type":"box","text":"based logic, called a protocol. Digital assets are par t of a new and rapidly changing industry, and the fur ther","page_number":65,"box":{"x":69,"y":831,"width":773,"height":11}},{"id":"eeca155a-bfb3-42e4-bced-a9e205179103","block_type":"box","text":"development of digital asset networks is subject to a variety of factors that are difficult to evaluate. Digital assets are","page_number":65,"box":{"x":69,"y":846,"width":839,"height":11}},{"id":"a03e4208-5e0a-464c-afeb-2682745b3266","block_type":"box","text":"relatively new assets with limited histories.","page_number":65,"box":{"x":69,"y":861,"width":305,"height":11}},{"id":"f5334800-257b-4695-8a6f-ff056e31e435","block_type":"box","text":"Risks Related to Digital Assets.","page_number":65,"box":{"x":102,"y":884,"width":223,"height":11}},{"id":"00015ea3-9440-4336-b458-b0e588f18782","block_type":"box","text":"Digital assets were only introduced within the past 15 years, and the value of","page_number":65,"box":{"x":332,"y":884,"width":552,"height":11}},{"id":"f723cd84-794f-4f04-b2fb-06bc013d2a5b","block_type":"box","text":"such digital assets is subject to a number of factors relating to the capabilities and development of blockchain","page_number":65,"box":{"x":69,"y":899,"width":788,"height":11}},{"id":"bf816c1b-938a-4f37-8712-3484a1a78b14","block_type":"box","text":"II-25","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cc808583-bcc8-4855-8a06-1ec620629154","block_type":"box","text":"NM1026U-5982643-65/241","page_number":65,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"fc4ed4fa-acd2-4b1b-a5ad-00882e0f91f8","block_type":"box","text":"technologies, such as the recentness of their development, their dependence on the internet and other technologies,","page_number":66,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"41e41324-897f-4e55-97ed-d2df315558a9","block_type":"box","text":"their dependence on the role played by users, developers, miners and validators and the potential for malicious","page_number":66,"box":{"x":68,"y":60,"width":795,"height":11}},{"id":"299b98e8-edd5-4d51-b064-b85cc13cb8c1","block_type":"box","text":"activity. Given the recentness of the development of digital asset networks, digital assets may not function as","page_number":66,"box":{"x":69,"y":75,"width":782,"height":11}},{"id":"70997d96-ccbe-409e-8733-6b2a01f1123e","block_type":"box","text":"intended and par ties may be unwilling to use digital assets, which would dampen the growth, if any, of digital asset","page_number":66,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"ff010167-91bc-4de4-840f-adab18e20f1f","block_type":"box","text":"networks.","page_number":66,"box":{"x":69,"y":105,"width":67,"height":9}},{"id":"d5c91ad3-ffc4-4769-a2fa-04030d0c5e82","block_type":"box","text":"The trading prices of many digital assets, including bitcoin and ether, have experienced extreme volatility in","page_number":66,"box":{"x":101,"y":128,"width":762,"height":11}},{"id":"77badcac-30c8-4732-bd8e-31c39a3dd975","block_type":"box","text":"recent periods and may continue to do so. Extreme volatility in the future, including fur ther declines in the trading","page_number":66,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"3a15e8d2-e2be-4488-bd17-ef8be4b1426f","block_type":"box","text":"prices of bitcoin and ether, could have a material adverse effect on the value of such digital asset investments. The","page_number":66,"box":{"x":70,"y":158,"width":824,"height":11}},{"id":"477bf48b-9f37-40ce-a9e6-cc4d41e77681","block_type":"box","text":"value of digital assets is subject to a number of factors relating to the their fundamental investment characteristics,","page_number":66,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"858fc7a8-43b9-4bb0-9cc4-f7432be3d40f","block_type":"box","text":"including the fact that digital assets are bearer instruments and loss, theft, destruction, or compromise of the","page_number":66,"box":{"x":70,"y":188,"width":784,"height":12}},{"id":"98fbe27f-bdc4-447a-95b2-ba07aa812724","block_type":"box","text":"associated private keys could result in permanent loss of the asset, and the capabilities and development of","page_number":66,"box":{"x":69,"y":203,"width":777,"height":12}},{"id":"083c1046-b882-472e-abd8-6bf90c488d9c","block_type":"box","text":"blockchain technologies such as the Bitcoin or Ethereum blockchain.","page_number":66,"box":{"x":69,"y":219,"width":488,"height":11}},{"id":"a869bc34-2130-4832-ab6c-325a89fa6895","block_type":"box","text":"The opaque nature of the digital asset market poses asset verification challenges for market par ticipants,","page_number":66,"box":{"x":101,"y":241,"width":755,"height":11}},{"id":"f15728f7-70ba-4d96-9c73-615ba00488f1","block_type":"box","text":"regulators and auditors and gives rise to an increased risk of manipulation and fraud, including the potential for Ponzi","page_number":66,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"ff252e28-50f1-4c4b-a62a-b5512ea75a89","block_type":"box","text":"schemes, bucket shops and pump and dump schemes. Digital assets have in the past been used to facilitate illicit","page_number":66,"box":{"x":69,"y":271,"width":821,"height":12}},{"id":"21ef9c39-0bf7-407d-9bf3-2d9ef1432007","block_type":"box","text":"activities. If a digital asset was used to facilitate illicit activities, businesses that facilitate transactions in such digital","page_number":66,"box":{"x":69,"y":286,"width":838,"height":12}},{"id":"ef1eebc7-9ae3-41cd-b42b-0a06c566c44e","block_type":"box","text":"assets could be at increased risk of potential criminal or civil liability or lawsuits, or of having banking or other","page_number":66,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"f705f96f-4bee-4f44-b819-cfe43fa57059","block_type":"box","text":"services cut off, and such digital asset could be removed from digital asset platforms. Any of the aforementioned","page_number":66,"box":{"x":69,"y":317,"width":809,"height":11}},{"id":"91b8df33-88ce-4509-a821-9021e06268d0","block_type":"box","text":"occurrences could adversely affect the price of the relevant digital asset, the attractiveness of the respective","page_number":66,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"2c1b04ea-bc65-450a-ab4b-86665051396d","block_type":"box","text":"blockchain network and investments in digital assets.","page_number":66,"box":{"x":69,"y":347,"width":381,"height":11}},{"id":"df7969c8-30da-47b5-bea4-ed89eb9815ed","block_type":"box","text":"If a malicious actor or botnet (a volunteer or hacked collection of computers controlled by networked software","page_number":66,"box":{"x":102,"y":370,"width":780,"height":11}},{"id":"f8cbedf1-6139-45a7-9a4e-6377f3927fc2","block_type":"box","text":"coordinating the actions of the computers) obtains control of more than 50% of the processing power dedicated to","page_number":66,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"f3a02106-12b9-4c12-bd60-e584aeb89589","block_type":"box","text":"mining on the Bitcoin network, it may be able to alter the Bitcoin blockchain on which transactions in bitcoin rely by","page_number":66,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"25dd3510-f7f7-4742-b852-3c25e5c89c39","block_type":"box","text":"constructing fraudulent blocks or preventing cer tain transactions from completing in a timely manner, or at all. The","page_number":66,"box":{"x":69,"y":415,"width":816,"height":11}},{"id":"1c473b3d-61ca-4749-a1b6-517a64b880f0","block_type":"box","text":"malicious actor or botnet could also control, exclude or modify the ordering of transactions.","page_number":66,"box":{"x":69,"y":430,"width":649,"height":11}},{"id":"13eedb2c-d9d3-4aea-a04e-214245c3cd4c","block_type":"box","text":"The Ethereum network is currently vulnerable to several types of attacks, including a:","page_number":66,"box":{"x":101,"y":453,"width":605,"height":11}},{"id":"065fa190-667a-4837-8949-7f0385bc801e","block_type":"box","text":"•","page_number":66,"box":{"x":69,"y":476,"width":6,"height":4}},{"id":"bf981dbe-a8e7-423c-9eed-9b27959c77c1","block_type":"box","text":"“>33% attack” where, if a validator or group of validators were to gain control of more than 33% of the total","page_number":66,"box":{"x":102,"y":473,"width":765,"height":11}},{"id":"4e62f7d5-32e8-4eec-b646-0566e296b273","block_type":"box","text":"staked ether on the Ethereum network, a malicious actor could temporarily impede or delay block confirmation or","page_number":66,"box":{"x":102,"y":488,"width":805,"height":11}},{"id":"41e784d0-f1e2-436f-8780-4ce9fb860a15","block_type":"box","text":"even cause a temporary fork in the blockchain. This is believed to be temporary, as the Ethereum network’s","page_number":66,"box":{"x":101,"y":503,"width":769,"height":11}},{"id":"d5cc2e82-1be9-495d-820d-5a7aab748cae","block_type":"box","text":"inactivity leak would be expected to eventually penalize the attacker enough for the chain to finalize again (i.e.,","page_number":66,"box":{"x":102,"y":518,"width":786,"height":12}},{"id":"a9c065cb-6301-4adb-83cc-1ff5dfff684c","block_type":"box","text":"the honest majority would be expected to reclaim 2/3rd stake as the attacker’s stake is penalized). However, it","page_number":66,"box":{"x":101,"y":534,"width":795,"height":11}},{"id":"3287842b-e09c-4a15-86ba-1324b4de7bb5","block_type":"box","text":"is not believed that with 33% control, a malicious actor could engage in double-spending or fraudulent block","page_number":66,"box":{"x":102,"y":549,"width":767,"height":11}},{"id":"d2335456-f401-47fd-a2aa-cecb65487160","block_type":"box","text":"propagation.","page_number":66,"box":{"x":102,"y":564,"width":87,"height":11}},{"id":"cf26dbd0-8953-427a-bedf-9a28ba351c0b","block_type":"box","text":"•","page_number":66,"box":{"x":69,"y":587,"width":6,"height":4}},{"id":"feb04696-5ca9-44da-a110-75fbca865138","block_type":"box","text":"“>50% attack” where, if a validator or group of validators acting in concer t were to gain control of more than 50%","page_number":66,"box":{"x":102,"y":584,"width":807,"height":11}},{"id":"612d438b-6430-4e21-b464-7cdeb1875c59","block_type":"box","text":"of the total staked ether on the Ethereum network, a malicious actor would be able to gain full control of the","page_number":66,"box":{"x":102,"y":599,"width":771,"height":11}},{"id":"beb1a594-58b4-4ae6-9b2d-3faaa89522a2","block_type":"box","text":"Ethereum network and the ability to manipulate future transactions on the blockchain, including censoring","page_number":66,"box":{"x":102,"y":614,"width":753,"height":11}},{"id":"a0d2bb74-37cf-490d-a648-c6ad8135a97c","block_type":"box","text":"transactions, double-spending and fraudulent block propagation, potentially for an extended period or even","page_number":66,"box":{"x":101,"y":629,"width":759,"height":11}},{"id":"b8dfcdac-c053-43b2-9670-3c27e231b343","block_type":"box","text":"permanently. In theory, the minority non-attackers might reach social consensus to reject blocks proposed by the","page_number":66,"box":{"x":102,"y":645,"width":804,"height":11}},{"id":"76873b1b-7667-4190-884a-43e13fe0f595","block_type":"box","text":"malicious majority attacker, reducing the attacker’s ability to engage in malicious activity, but there can be no","page_number":66,"box":{"x":102,"y":660,"width":778,"height":11}},{"id":"e288b1bc-b776-422b-9368-dbc3da0d7930","block_type":"box","text":"assurance this would happen or that non-attackers would be able to coordinate effectively.","page_number":66,"box":{"x":102,"y":675,"width":643,"height":11}},{"id":"31860488-22be-4a64-bd70-2387ae43a5ef","block_type":"box","text":"•","page_number":66,"box":{"x":69,"y":698,"width":6,"height":4}},{"id":"268c8755-07da-494e-a69f-71063384f3b1","block_type":"box","text":"“>66% attack” where, if a validator or group of validators acting in concer t were to gain control of more than 66%","page_number":66,"box":{"x":102,"y":695,"width":807,"height":11}},{"id":"14aa1d8b-62d2-4f3b-8d45-0f443eda60af","block_type":"box","text":"of the total staked ether on the Ethereum network, a malicious actor could permanently and irreversibly","page_number":66,"box":{"x":102,"y":710,"width":737,"height":11}},{"id":"3588bbe9-ed78-47e2-8ca6-4c962b61f8db","block_type":"box","text":"manipulate the blockchain, including censorship, double-spending and fraudulent block propagation. The attacker","page_number":66,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"c65aa874-cc94-49f8-84aa-205d6fa2eeaf","block_type":"box","text":"could finalize their preferred chain without any consideration for the votes of other stakers and could also rever t","page_number":66,"box":{"x":101,"y":740,"width":799,"height":11}},{"id":"64b9718e-c86c-409e-9df2-990033de6c81","block_type":"box","text":"finalized blocks.","page_number":66,"box":{"x":101,"y":755,"width":113,"height":9}},{"id":"15f75d9c-bd2c-4d9a-aa4d-0f6e53bd3674","block_type":"box","text":"The largest bitcoin and ether wallets are believed to hold, in aggregate, a significant percentage of the bitcoins","page_number":66,"box":{"x":101,"y":778,"width":790,"height":11}},{"id":"aab1d022-2941-466b-ae51-e337c594b5f5","block_type":"box","text":"and ether in circulation. Moreover, it is possible that other persons or entities control multiple wallets that collectively","page_number":66,"box":{"x":69,"y":793,"width":839,"height":11}},{"id":"00650088-b191-4afa-903d-d39c3a472240","block_type":"box","text":"hold a significant number of bitcoins or ether, even if they individually only hold a small amount, and it is possible","page_number":66,"box":{"x":69,"y":808,"width":809,"height":11}},{"id":"ec53f8e6-a835-4d97-84d5-dddb98100e5c","block_type":"box","text":"that some of these wallets are controlled by the same person or entity. As a result of this concentration of ownership,","page_number":66,"box":{"x":68,"y":823,"width":840,"height":11}},{"id":"bf3d1d86-537e-42f5-88e5-f1b70c67ed09","block_type":"box","text":"large sales or distributions by such holders could have an adverse effect on the market price of bitcoin or ether.","page_number":66,"box":{"x":70,"y":838,"width":796,"height":12}},{"id":"36ffe928-7930-44ec-a983-9a0f421a798b","block_type":"box","text":"Risks Related to Digital Assets as a Means of Payment.","page_number":66,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"cef911c3-b1a8-4447-83ef-817cdef710ee","block_type":"box","text":"Digital assets such as bitcoin and ether have only","page_number":66,"box":{"x":506,"y":861,"width":354,"height":11}},{"id":"72830db2-3b21-4748-bd4f-9389f7cc1c4e","block_type":"box","text":"recently become selectively accepted as a means of payment by retail and commercial outlets, and use of bitcoins or","page_number":66,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"cbd8f8e8-9df1-499a-a4af-f34b1a8e1248","block_type":"box","text":"ether by consumers to pay such retail and commercial outlets remains limited. Banks and other established financial","page_number":66,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"22015d14-6a33-47bf-a224-822f8ed5896e","block_type":"box","text":"institutions may refuse to process funds for bitcoin or ether transactions; process wire transfers to or from digital","page_number":66,"box":{"x":70,"y":906,"width":807,"height":12}},{"id":"5c380aaf-0af7-4e62-b190-21cfe4b13d8c","block_type":"box","text":"II-26","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"aeb5c6fd-584b-4693-910c-27573edf2e02","block_type":"box","text":"NM1026U-5982643-66/241","page_number":66,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"2de9d37c-3924-4018-8dc8-3a8e289867d7","block_type":"box","text":"asset platforms, bitcoin- or ether-related companies or service providers; or maintain accounts for persons or entities","page_number":67,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"38a36401-6d41-47cb-834d-bbc84fcf1ac8","block_type":"box","text":"transacting in bitcoin or ether. As a result, the prices of bitcoin or ether may be influenced to a significant extent by","page_number":67,"box":{"x":68,"y":60,"width":822,"height":11}},{"id":"3ccf8689-e454-4c2e-be58-0e95db71bcf9","block_type":"box","text":"speculators, and thus contributing to price volatility that makes retailers less likely to accept such digital assets as a","page_number":67,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"2eb08be6-9f01-4017-ae18-8d514cf61217","block_type":"box","text":"form of payment in the future.","page_number":67,"box":{"x":68,"y":90,"width":213,"height":11}},{"id":"c1aa627b-66ed-4d95-a542-172f734db0a7","block_type":"box","text":"In addition, as the speed of digital asset transactions and the number of transactions that can be processed","page_number":67,"box":{"x":102,"y":113,"width":775,"height":11}},{"id":"fc14c029-b9d6-4bdd-84fb-f43c6311323a","block_type":"box","text":"lags behind growth in the use of digital asset networks, average fees and settlement times may increase","page_number":67,"box":{"x":70,"y":128,"width":747,"height":11}},{"id":"2e20ac22-389c-4765-bafe-f86f7982ee44","block_type":"box","text":"considerably. For example, the Bitcoin network and Ethereum network have been, at times, at capacity, which has led","page_number":67,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"7d251419-210c-4cb7-9b9b-1f098b590391","block_type":"box","text":"to increased transaction fees. Increased fees and decreased settlement speeds could preclude cer tain uses for","page_number":67,"box":{"x":68,"y":158,"width":802,"height":11}},{"id":"7486b0e9-4780-402a-a7c1-ae8a3e58bc7a","block_type":"box","text":"bitcoin or ether (e.g., micropayments), and could reduce demand for, and the price of, bitcoin or ether. Bitcoin or","page_number":67,"box":{"x":69,"y":173,"width":801,"height":11}},{"id":"c7ca1688-4ffb-4491-ac74-686f4c3d140b","block_type":"box","text":"Ethereum transactions are typically not reversible without the consent and active par ticipation of the recipient of the","page_number":67,"box":{"x":70,"y":188,"width":827,"height":11}},{"id":"499bd9f2-d424-483c-900f-86737867648b","block_type":"box","text":"transaction. Once a transaction has been verified and recorded in a block that is added to the Bitcoin or Ethereum","page_number":67,"box":{"x":68,"y":203,"width":815,"height":9}},{"id":"ed8c5873-df1c-431a-9e65-c50c2a8f19d0","block_type":"box","text":"blockchain, an incorrect transfer or theft of bitcoin generally will not be reversible and a holder of bitcoin or ether,","page_number":67,"box":{"x":69,"y":218,"width":806,"height":12}},{"id":"47262cbb-9e35-49e4-a243-98dd8a7bfa2f","block_type":"box","text":"such as an ETP (as defined below), may not be capable of seeking compensation for any such transfer or theft.","page_number":67,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"94a12fcb-927b-4784-9df3-b800aad62e53","block_type":"box","text":"Risks Related to the Digital Asset Markets.","page_number":67,"box":{"x":102,"y":257,"width":305,"height":11}},{"id":"85ae4d86-b42c-4035-8bda-7ddfd23f0715","block_type":"box","text":"Bitcoin and ether were among the first cryptographic digital assets to","page_number":67,"box":{"x":415,"y":256,"width":491,"height":12}},{"id":"bcbd25e0-ef55-44b0-b49d-1cb6dbe5695b","block_type":"box","text":"gain global adoption and critical mass. In general, digital asset networks, including the Bitcoin network, the Ethereum","page_number":67,"box":{"x":68,"y":272,"width":837,"height":11}},{"id":"5b2e763e-133c-41de-a86b-e5b415787983","block_type":"box","text":"network and other cryptographic and algorithmic protocols governing the issuance of digital assets represent a new","page_number":67,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"3ccedde9-35d6-424a-9dc4-046aa397738e","block_type":"box","text":"and rapidly evolving industry that is subject to a variety of factors that are difficult to evaluate. In addition, many","page_number":67,"box":{"x":69,"y":302,"width":799,"height":11}},{"id":"2e804382-de9a-4acb-b196-f094cacca33e","block_type":"box","text":"consor tiums and financial institutions are also researching and investing resources into private or permissioned","page_number":67,"box":{"x":69,"y":317,"width":799,"height":11}},{"id":"4edcb75e-2ab0-4754-bcba-53430aa9820f","block_type":"box","text":"smar t contract platforms rather than open platforms like the Bitcoin network or the Ethereum network. Competition","page_number":67,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"1978998c-642d-4d62-8bd8-9e03e0549382","block_type":"box","text":"from the emergence or growth of alternative digital assets and smar t contracts platforms, such as Solana,","page_number":67,"box":{"x":68,"y":347,"width":761,"height":11}},{"id":"e6857a20-7807-4ada-a06a-76ccf705d076","block_type":"box","text":"Avalanche, Polkadot, or Cardano, could have a negative impact on the demand for, and price of, bitcoin or ether and","page_number":67,"box":{"x":68,"y":362,"width":827,"height":11}},{"id":"507db423-ec21-48c2-9f54-f77a77fc6d7b","block_type":"box","text":"thereby adversely affect the value of the bitcoin- or ether-related investments.","page_number":67,"box":{"x":68,"y":377,"width":553,"height":11}},{"id":"d8d3af6a-4b8b-4d63-ac7a-6432b0a51c96","block_type":"box","text":"Moreover, in the past, bugs, defects and flaws in the source code for digital assets have been exposed and","page_number":67,"box":{"x":102,"y":400,"width":766,"height":11}},{"id":"dda8f1ad-e718-45c0-82e6-6dedaedadd97","block_type":"box","text":"exploited, including flaws that disabled some functionality for users, exposed users’ personal information and/or","page_number":67,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"5e0aeab2-87ab-4dad-a214-6a13370f5cfa","block_type":"box","text":"resulted in the theft of users’ digital assets. The cryptography underlying digital asset networks or digital assets","page_number":67,"box":{"x":69,"y":430,"width":798,"height":11}},{"id":"e09db1ac-8971-479a-a16d-4b7fb8296be9","block_type":"box","text":"could prove to be flawed or ineffective, or developments in mathematics and/or technology, including advances in","page_number":67,"box":{"x":69,"y":445,"width":810,"height":12}},{"id":"2ea4158f-8ea1-442d-8caa-1a350136efbc","block_type":"box","text":"digital computing, algebraic geometry and quantum computing, could result in such cryptography becoming","page_number":67,"box":{"x":69,"y":461,"width":763,"height":11}},{"id":"e9a5558e-7949-4d99-8160-9e4ebb79af3e","block_type":"box","text":"ineffective. In any of these circumstances, a malicious actor may be able to compromise the security of digital asset","page_number":67,"box":{"x":70,"y":475,"width":830,"height":12}},{"id":"99a7366f-6f80-4a6d-b198-aefde3654d2c","block_type":"box","text":"networks or take a holder’s digital assets. Moreover, normal operations and functionality of digital asset networks","page_number":67,"box":{"x":69,"y":491,"width":812,"height":11}},{"id":"4f0747cc-9cab-441e-af50-834a90a3d860","block_type":"box","text":"may be negatively affected such that it is no longer attractive to users or other stakeholders, thereby dampening","page_number":67,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"5c52e22f-4239-4a44-ae44-f40ecf9a28c5","block_type":"box","text":"demand for such digital assets.","page_number":67,"box":{"x":69,"y":521,"width":223,"height":11}},{"id":"15494df3-5c46-4e2b-908c-324f71860721","block_type":"box","text":"Digital Asset ETPs.","page_number":67,"box":{"x":102,"y":544,"width":132,"height":11}},{"id":"9b8f9c0c-7d82-42c7-a0d1-8dcc2758e1f8","block_type":"box","text":"The Fund may acquire shares in exchange-traded products (“ETPs”) that seek to reflect","page_number":67,"box":{"x":240,"y":543,"width":621,"height":12}},{"id":"6c2082e1-4d33-4efb-9f11-7246f71c6415","block_type":"box","text":"generally the per formance of the price of bitcoin or ether by directly holding bitcoin (“Bitcoin ETPs”) or ether (“Ether","page_number":67,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"860710e8-6397-45f0-9cbb-51307b936c8b","block_type":"box","text":"ETPs”), including shares of a Bitcoin ETP or Ether ETP sponsored by an affiliate of BlackRock. The Fund will only","page_number":67,"box":{"x":70,"y":574,"width":796,"height":11}},{"id":"cd98d44b-e27f-4b25-b0ae-15811075b080","block_type":"box","text":"invest in Bitcoin ETPs or Ether ETPs that are listed and traded on national securities exchanges. A Bitcoin ETP or an","page_number":67,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"c91722b8-0d6e-4b46-aa64-d2ce16a0d58d","block_type":"box","text":"Ether ETP is not an investment company registered under the Investment Company Act of 1940, as amended, and","page_number":67,"box":{"x":70,"y":604,"width":813,"height":11}},{"id":"c4d121d7-8bc6-47bd-8856-ab5cd3fd2b72","block_type":"box","text":"therefore does not have the same investor protections as a registered investment company.","page_number":67,"box":{"x":68,"y":619,"width":656,"height":11}},{"id":"5f9e9b1b-68fe-49fb-947b-7722de30cc26","block_type":"box","text":"Futures on Digital Assets.","page_number":67,"box":{"x":102,"y":642,"width":182,"height":11}},{"id":"4b4dde62-a631-4704-81bd-0bcafcfdac8c","block_type":"box","text":"The Fund may invest in futures on Bitcoin and futures on Ethereum. See","page_number":67,"box":{"x":290,"y":642,"width":514,"height":11}},{"id":"51a05f48-ef71-4727-a7c2-aa458cabaedd","block_type":"box","text":"“Derivatives—General,” “Derivatives—Regulation of Derivatives” and “Derivatives—Risk Factors in Derivatives”","page_number":67,"box":{"x":70,"y":657,"width":792,"height":11}},{"id":"ff60dede-fde4-46d6-8d9c-601ffa7a0ad2","block_type":"box","text":"below.","page_number":67,"box":{"x":69,"y":672,"width":43,"height":9}},{"id":"cabc63e0-8260-42ac-acf5-cca104980b92","block_type":"box","text":"Distressed Securities.","page_number":67,"box":{"x":102,"y":695,"width":159,"height":9}},{"id":"d27c137e-b6ae-4c5e-b7ef-07961f7195c6","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":67,"box":{"x":267,"y":695,"width":633,"height":11}},{"id":"b2614526-a8ae-40b3-9272-849117c5605c","block_type":"box","text":"are the subject of bankruptcy proceedings or otherwise in default or in risk of being in default as to the repayment of","page_number":67,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"0d127ecb-2a07-4f79-bcea-df48dfdf3c1b","block_type":"box","text":"principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one","page_number":67,"box":{"x":70,"y":725,"width":827,"height":11}},{"id":"647d94e8-65db-494f-a870-2fdb355917a7","block_type":"box","text":"or more nationally recognized statistical rating organizations (for example, Ca or lower by Moody’s and CC or lower by","page_number":67,"box":{"x":69,"y":740,"width":835,"height":11}},{"id":"4408a583-ce64-4862-80f1-3deb28a018d6","block_type":"box","text":"S&P or Fitch) or, if unrated, are in the judgment of the Manager of equivalent quality (“Distressed Securities”).","page_number":67,"box":{"x":69,"y":755,"width":784,"height":11}},{"id":"497ceb0f-dc82-4fe1-a804-b9cfdd8e98e8","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":67,"box":{"x":70,"y":770,"width":569,"height":12}},{"id":"ea744d47-e0c5-43bf-a41d-e102a92b4447","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":67,"box":{"x":101,"y":793,"width":766,"height":11}},{"id":"157e5d53-ffea-41f5-bcc2-624dc491d225","block_type":"box","text":"issuer of the Distressed Securities will make an exchange offer or will be the subject of a plan of reorganization","page_number":67,"box":{"x":70,"y":808,"width":795,"height":11}},{"id":"8d2da3f7-cd3d-4824-8db2-d0fb40572f94","block_type":"box","text":"pursuant to which the Fund will receive new securities in return for the Distressed Securities. However, there can be","page_number":67,"box":{"x":70,"y":823,"width":826,"height":11}},{"id":"e11ee623-3c84-4baf-9214-59dcbad49159","block_type":"box","text":"no assurance that such an exchange offer will be made or that such a plan of reorganization will be adopted. In","page_number":67,"box":{"x":69,"y":838,"width":794,"height":12}},{"id":"07ac8dcd-050f-4e90-b135-be01f0e3d808","block_type":"box","text":"addition, a significant period of time may pass between the time at which a Fund makes its investment in Distressed","page_number":67,"box":{"x":69,"y":853,"width":832,"height":12}},{"id":"1d786fb7-3f0f-4b7b-b33d-3148a077b1a6","block_type":"box","text":"Securities and the time that any such exchange offer or plan of reorganization is completed. During this period, it is","page_number":67,"box":{"x":69,"y":869,"width":824,"height":11}},{"id":"b0126ef7-71ff-4f56-8d9c-49ef7059edb3","block_type":"box","text":"unlikely that a Fund will receive any interest payments on the Distressed Securities, the Fund will be subject to","page_number":67,"box":{"x":69,"y":884,"width":789,"height":11}},{"id":"481cdd50-52cf-413e-a379-7cbeb32221af","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":67,"box":{"x":69,"y":899,"width":810,"height":11}},{"id":"7e3af9a5-4b9c-4f36-abc9-18507243de99","block_type":"box","text":"II-27","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"148a849c-bfac-4731-8e7b-4d86afa8bdfc","block_type":"box","text":"NM1026U-5982643-67/241","page_number":67,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"213b525a-9143-4f17-ab3d-df64df4e2e22","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":68,"box":{"x":70,"y":45,"width":831,"height":11}},{"id":"3c69e648-00fa-43f0-b947-3364078a48c7","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":68,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"eb0f442c-5c93-4f83-9c5d-cd353406c790","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":68,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"affca436-e07f-49d7-8959-9358bdabb2f4","block_type":"box","text":"when and in what manner and for what value the obligations evidenced by the distressed securities will eventually be","page_number":68,"box":{"x":68,"y":90,"width":834,"height":11}},{"id":"daf639f6-dc3a-4265-b5bd-04875b323f07","block_type":"box","text":"satisfied (e.g., through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":68,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"34f9e09a-b2d6-40cf-b278-41dfa45c541b","block_type":"box","text":"distressed securities or a payment of some amount in satisfaction of the obligation). Even if an exchange offer is","page_number":68,"box":{"x":69,"y":120,"width":807,"height":12}},{"id":"60087ff7-4f23-41c2-bb09-d4effa771d36","block_type":"box","text":"made or plan of reorganization is adopted with respect to Distressed Securities held by a Fund, there can be no","page_number":68,"box":{"x":69,"y":135,"width":797,"height":12}},{"id":"29be36b8-c465-4576-95d2-b3c240bc2e8d","block_type":"box","text":"assurance that the securities or other assets received by a Fund in connection with such exchange offer or plan of","page_number":68,"box":{"x":69,"y":150,"width":816,"height":12}},{"id":"debca4de-93c2-434b-a293-d6b3530b7aea","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":68,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"fe471fd0-1508-4638-a902-48966ab0f6af","block_type":"box","text":"was made or no value. Moreover, any securities received by a Fund upon completion of an exchange offer or plan of","page_number":68,"box":{"x":68,"y":181,"width":827,"height":11}},{"id":"0ac415d9-253b-4146-8a54-135df8314f0f","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":68,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"f7fb49ea-7a75-4325-98df-80bf586594ff","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":68,"box":{"x":69,"y":211,"width":770,"height":11}},{"id":"cb7b5e30-21b4-424e-bdef-6e07c97e04a7","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":68,"box":{"x":69,"y":226,"width":809,"height":11}},{"id":"a0a34d51-ac59-40bf-9790-2964e3fd82a1","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":68,"box":{"x":70,"y":241,"width":839,"height":11}},{"id":"b57748c0-e12a-497a-9f0d-4779a70287d3","block_type":"box","text":"Fund, however, will not make investments for the purpose of exercising day-to-day management of any issuer’s","page_number":68,"box":{"x":70,"y":256,"width":787,"height":12}},{"id":"00542117-8396-4126-8b1f-0f6f9ad40e82","block_type":"box","text":"affairs.","page_number":68,"box":{"x":69,"y":271,"width":49,"height":9}},{"id":"6e4812e2-fb86-4c88-9336-e0f8bf41232e","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":68,"box":{"x":102,"y":294,"width":428,"height":11}},{"id":"e719931c-7c98-4575-998f-8c76a3b7641e","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":68,"box":{"x":531,"y":294,"width":341,"height":11}},{"id":"7599a947-c5bd-405a-be5b-b93f08fe62ed","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":68,"box":{"x":69,"y":309,"width":785,"height":11}},{"id":"d484744c-4a75-43c2-af2f-574d78f87fe4","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":68,"box":{"x":69,"y":324,"width":838,"height":12}},{"id":"3927fafe-033b-454a-83b9-aedf18a12a05","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":68,"box":{"x":70,"y":339,"width":827,"height":12}},{"id":"3bbe1140-e095-42c3-8569-14718267f12c","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":68,"box":{"x":69,"y":355,"width":806,"height":11}},{"id":"31e14185-9e52-4c51-8be7-7b995b0d3940","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":68,"box":{"x":69,"y":370,"width":812,"height":11}},{"id":"1561aed9-f61f-40f3-ab31-ea165aa5844f","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer.","page_number":68,"box":{"x":69,"y":385,"width":492,"height":11}},{"id":"d28bff27-d894-4711-8e36-542e9bccc236","block_type":"box","text":"The ESG characteristics utilized in a Fund’s investment process are anticipated to evolve over time and one or","page_number":68,"box":{"x":101,"y":408,"width":787,"height":10}},{"id":"9ce64bd7-8c63-493b-988c-da3b97abcb36","block_type":"box","text":"more characteristics may not be relevant with respect to all issuers that are eligible for investment. Cer tain of these","page_number":68,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"907eb01c-764b-4248-bf68-4e6c78dfa3d3","block_type":"box","text":"considerations may affect a Fund’s exposure to cer tain companies or industries.","page_number":68,"box":{"x":69,"y":438,"width":575,"height":11}},{"id":"b397572b-12e3-4263-b09f-d342b417c55a","block_type":"box","text":"While Fund management views ESG considerations as having the potential to contribute to a Fund’s long-term","page_number":68,"box":{"x":101,"y":460,"width":782,"height":12}},{"id":"b9b41020-d263-462e-b5f0-549ba41703d4","block_type":"box","text":"per formance, there is no guarantee that such results will be achieved.","page_number":68,"box":{"x":70,"y":475,"width":500,"height":12}},{"id":"94b8aa60-fe7d-4b52-a50b-727443b51e24","block_type":"box","text":"Equity Securities.","page_number":68,"box":{"x":102,"y":498,"width":127,"height":11}},{"id":"08e6ad01-7353-4a8e-bba2-f04936ae5429","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":68,"box":{"x":235,"y":498,"width":648,"height":11}},{"id":"d7676ad1-6ac7-4070-8b0b-3bd4075ca7c3","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":68,"box":{"x":70,"y":513,"width":802,"height":12}},{"id":"a02631fe-1f70-465f-817d-5360c0e8059e","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":68,"box":{"x":70,"y":529,"width":817,"height":11}},{"id":"469de5ef-5715-46a1-9218-8ab786432e62","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":68,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"c12a7b5e-d73b-4641-a275-ed229682516a","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":68,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"c71b0a99-4bb4-47f8-8af0-522db5dafc4b","block_type":"box","text":"and overall market and economic conditions. The value of equity securities purchased by the Fund could decline if the","page_number":68,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"d39b95dc-937e-4e1f-91df-927516d5f763","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":68,"box":{"x":68,"y":589,"width":775,"height":11}},{"id":"fbc63361-ffce-4755-b9fd-769ace85ef03","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":68,"box":{"x":69,"y":604,"width":777,"height":11}},{"id":"3f2bbaf6-13b6-4afd-8bb6-4187ca14de44","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":68,"box":{"x":69,"y":619,"width":837,"height":11}},{"id":"bfbb4712-9bb3-4a78-be30-73d72c9636c7","block_type":"box","text":"due to general market conditions that are not specifically related to a company or industry, such as real or perceived","page_number":68,"box":{"x":69,"y":634,"width":831,"height":12}},{"id":"162b0ba6-93da-4ca7-9084-eb3967b03676","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":68,"box":{"x":69,"y":649,"width":829,"height":12}},{"id":"fa4dd4ec-35b0-492a-b940-f7eb61df5c70","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":68,"box":{"x":69,"y":665,"width":325,"height":11}},{"id":"53eaa1f8-72f1-4bc8-ad26-4f2d79304b62","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":68,"box":{"x":102,"y":687,"width":745,"height":11}},{"id":"a0081b15-4574-447f-bf05-0f8bd06a5370","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":68,"box":{"x":69,"y":702,"width":833,"height":12}},{"id":"0ebb3e58-9530-411b-8cc3-343439893e1a","block_type":"box","text":"no assurance that any Fund will have continued access to profitable IPOs and therefore investors should not rely on","page_number":68,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"09dcab0d-2776-4891-89d7-a0d90988294e","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":68,"box":{"x":68,"y":732,"width":834,"height":12}},{"id":"1bd8701a-f4f5-42a2-ba73-71e3999dca5e","block_type":"box","text":"it is unable to invest significantly or at all in IPOs may be lower than during periods when it is able to do so. In","page_number":68,"box":{"x":70,"y":748,"width":782,"height":11}},{"id":"78692ce6-e783-4678-9537-0623f9366123","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":68,"box":{"x":69,"y":763,"width":790,"height":11}},{"id":"42c3fe7b-dde5-4aa1-bfe7-9e6053b4b655","block_type":"box","text":"issued in IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations.","page_number":68,"box":{"x":70,"y":778,"width":823,"height":11}},{"id":"1c4f10b2-cacf-4d3a-80f4-d46e7f0fd4b7","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":68,"box":{"x":69,"y":793,"width":805,"height":11}},{"id":"368dc4b0-914c-4020-9088-1f835b422d5b","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":68,"box":{"x":70,"y":808,"width":836,"height":11}},{"id":"64c0a6a3-02e7-4155-b17a-81b1cdabab48","block_type":"box","text":"initial public offering.","page_number":68,"box":{"x":70,"y":823,"width":147,"height":12}},{"id":"6c830d5a-c47e-41eb-8de2-891d7f1c5097","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":68,"box":{"x":101,"y":846,"width":777,"height":11}},{"id":"a32fa286-5fc4-4c26-833c-12fc7443ae61","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":68,"box":{"x":69,"y":861,"width":838,"height":11}},{"id":"24356408-fbf1-4ce4-acbe-3cf898a2db2c","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":68,"box":{"x":69,"y":876,"width":815,"height":11}},{"id":"59df89f8-0be0-40cb-97ed-d5fc5029cd34","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":68,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"5b3bda99-b55a-47dc-b125-3e35778aecaf","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":68,"box":{"x":70,"y":906,"width":831,"height":12}},{"id":"9bec5880-465e-436a-a4ec-5b2b60a0e6a4","block_type":"box","text":"II-28","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b69c65b5-d3ad-44e6-a4d5-617719754f90","block_type":"box","text":"NM1026U-5982643-68/241","page_number":68,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"787bc8d4-a8c8-4ecd-97e9-89b314e59732","block_type":"box","text":"are often traded in the OTC markets and may have fewer market makers and wider price spreads. This may result in","page_number":69,"box":{"x":69,"y":45,"width":826,"height":11}},{"id":"108162f4-9f1f-4150-8c27-fd2750ec9a68","block_type":"box","text":"greater price movements and less ability to sell a Fund’s investment than if the Fund held the securities of larger,","page_number":69,"box":{"x":68,"y":60,"width":810,"height":11}},{"id":"c7bb5fd2-0d1c-495c-abd0-695c5a11d1a6","block_type":"box","text":"more established companies.","page_number":69,"box":{"x":69,"y":75,"width":209,"height":11}},{"id":"3c77e674-4c10-40b6-8ea9-99dffb8e67b8","block_type":"box","text":"For a discussion of the types of equity securities in which your Fund may invest and the risks associated with","page_number":69,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"2ebc475f-f1c8-4372-9209-d3e54d0bd518","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":69,"box":{"x":70,"y":113,"width":810,"height":11}},{"id":"5db19b01-bfb1-46d4-9f72-c06eacc194b6","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":69,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"73897306-5f0d-4204-b1b3-cd422518be8b","block_type":"box","text":"below.","page_number":69,"box":{"x":69,"y":143,"width":43,"height":9}},{"id":"91190893-8e2a-4869-885c-f6287c05f0e9","block_type":"box","text":"Real Estate-Related Securities.","page_number":69,"box":{"x":102,"y":166,"width":219,"height":9}},{"id":"2292a550-bf7a-48c2-bd5b-45fd38d19aed","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":69,"box":{"x":327,"y":166,"width":565,"height":11}},{"id":"a04f374e-2f0e-4ba2-a000-be318c2289a6","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":69,"box":{"x":69,"y":181,"width":822,"height":11}},{"id":"24d9bbe2-a99a-4c95-83aa-f1ce180e408f","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":69,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"7f22d440-651e-413e-ac48-69646b69cfce","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":69,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"042ef1a7-e3f1-43e4-bb57-060ba15b9233","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":69,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"efc3dbc8-2603-4c50-8704-f524d523acd3","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":69,"box":{"x":69,"y":241,"width":795,"height":11}},{"id":"6a51b3f3-592d-4d95-b755-b1c7bd68538b","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":69,"box":{"x":68,"y":257,"width":828,"height":11}},{"id":"df490fed-1e70-48e9-9b48-b4d89bea1775","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":69,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"7ac1bee4-7baa-45a3-bfb1-20c428adb2f9","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":69,"box":{"x":68,"y":286,"width":805,"height":12}},{"id":"fc5d6506-1c32-48e7-9bc4-0209e0a1e437","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":69,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"ad39945a-46db-4335-b00b-79b6fd2e9d1d","block_type":"box","text":"rents; investment in developments that are not completed or that are subject to delays in completion; and changes in","page_number":69,"box":{"x":69,"y":317,"width":838,"height":11}},{"id":"14038267-524f-470f-8fcc-3bb454645f71","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":69,"box":{"x":70,"y":332,"width":838,"height":11}},{"id":"a2dbafe0-a4d9-4d32-985b-0c5f8f840d81","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":69,"box":{"x":68,"y":347,"width":785,"height":11}},{"id":"a74c1bdd-0269-4a20-bb9a-85a2b7dc28ee","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":69,"box":{"x":70,"y":362,"width":836,"height":11}},{"id":"644fb1fd-3fb3-4d26-ac16-e443215be4ed","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":69,"box":{"x":68,"y":377,"width":381,"height":12}},{"id":"c6d80af7-c04d-48fd-aac8-cc71e1b57f54","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":69,"box":{"x":102,"y":400,"width":797,"height":11}},{"id":"6f7e4f64-3341-45fe-bbc5-c58f546ff290","block_type":"box","text":"of a default on securities the Fund owns, the receipt of such income may adversely affect the Fund’s ability to retain","page_number":69,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"1ee2fb38-7cdb-4967-920c-e4a38b71a1fa","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":69,"box":{"x":70,"y":430,"width":794,"height":11}},{"id":"57d1904e-d3a1-4224-960d-7fbf7a84508a","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":69,"box":{"x":69,"y":445,"width":730,"height":12}},{"id":"ee66aa8a-1599-4b68-b74c-652168974bfe","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":69,"box":{"x":102,"y":468,"width":381,"height":11}},{"id":"6144cc97-e57b-4c51-8f11-74c1e6dae17c","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":69,"box":{"x":490,"y":468,"width":376,"height":11}},{"id":"6374cde9-af57-428c-bf22-919320e6f1ec","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":69,"box":{"x":70,"y":483,"width":828,"height":11}},{"id":"6ad9973e-a3c8-4f77-93c7-d07e59d0de34","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":69,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"c25abc96-7678-48ea-8dc2-e62444e539e8","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":69,"box":{"x":69,"y":514,"width":804,"height":11}},{"id":"2e6a0308-b555-4979-8786-2cb60583a99e","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":69,"box":{"x":69,"y":528,"width":647,"height":12}},{"id":"13fffd6b-3e16-416a-b3ce-aa03de525002","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":69,"box":{"x":102,"y":551,"width":773,"height":11}},{"id":"41abecd2-cc40-464c-b627-8f9de93668ee","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":69,"box":{"x":69,"y":566,"width":597,"height":11}},{"id":"8f5f9942-35ce-4f78-ae02-478f112d7d61","block_type":"box","text":"Small cap and emerging growth securities will often be traded only in the OTC market or on a regional securities","page_number":69,"box":{"x":102,"y":589,"width":797,"height":11}},{"id":"2a6a4793-1854-42c4-9103-8c8d945d8dbc","block_type":"box","text":"exchange and may not be traded every day or in the volume typical of trading on a national securities exchange. As a","page_number":69,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"8a4d51ac-76bf-409c-8615-5060973f205b","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":69,"box":{"x":69,"y":619,"width":808,"height":11}},{"id":"baa803ab-4805-4011-b153-ad0cb2ebd345","block_type":"box","text":"make many small sales over a lengthy period of time, or to sell these securities at a discount from market prices or","page_number":69,"box":{"x":69,"y":634,"width":825,"height":12}},{"id":"1959c07b-898b-4cba-9544-6fd50686da7f","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":69,"box":{"x":69,"y":650,"width":631,"height":11}},{"id":"211737f3-f897-41cd-9491-cdd3a379ea20","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":69,"box":{"x":101,"y":672,"width":758,"height":11}},{"id":"f9659a70-2afa-4fb1-9a82-cd705971c3a2","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":69,"box":{"x":70,"y":687,"width":787,"height":11}},{"id":"13ecdf98-d015-448c-b930-599bda5525aa","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":69,"box":{"x":70,"y":702,"width":789,"height":12}},{"id":"a17f04d5-f7f3-43bf-b336-ad66118bfe99","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":69,"box":{"x":68,"y":718,"width":442,"height":11}},{"id":"2dcc2960-7e25-418c-a379-14cfdcae817f","block_type":"box","text":"Fund management believes that relatively small companies may to have the oppor tunity to develop into","page_number":69,"box":{"x":102,"y":740,"width":735,"height":11}},{"id":"5eb16cf0-5074-4782-8789-b99a815c9a68","block_type":"box","text":"significant business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of","page_number":69,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"39f2131c-d963-42ca-8521-a401a77010f2","block_type":"box","text":"business development that have a new technology, a unique or proprietary product or service, or a favorable market","page_number":69,"box":{"x":69,"y":770,"width":827,"height":12}},{"id":"55adb49b-f674-4d4b-904c-91e09b880553","block_type":"box","text":"position.","page_number":69,"box":{"x":70,"y":786,"width":58,"height":10}},{"id":"770152d9-7b31-4c36-a705-ee38ae94b39d","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":69,"box":{"x":102,"y":808,"width":729,"height":11}},{"id":"8f8da822-87d7-4363-b7c1-a89360d01d5f","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":69,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"0eba13ba-9e4f-4323-a4c2-7bdd00a98258","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":69,"box":{"x":69,"y":838,"width":794,"height":12}},{"id":"44e77258-af98-4534-82aa-71d72f4f461b","block_type":"box","text":"cycles.","page_number":69,"box":{"x":69,"y":854,"width":46,"height":11}},{"id":"53492262-cf90-453d-91f1-83fc1cba326a","block_type":"box","text":"Tracking Stocks","page_number":69,"box":{"x":103,"y":876,"width":110,"height":11}},{"id":"cac8cc66-c71b-4e71-b92f-2eef88114a1f","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":69,"box":{"x":214,"y":876,"width":640,"height":11}},{"id":"ef844430-c3fe-49b3-b3e1-0b8953e03f03","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":69,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"5d261c08-9500-45cd-9462-fda4690e8296","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":69,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"561f2141-e5e9-46c0-9888-defaf8e2bdf3","block_type":"box","text":"II-29","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9be3317e-4881-4009-a576-050d12dd2eb4","block_type":"box","text":"NM1026U-5982643-69/241","page_number":69,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"c2bce12d-5c04-4606-8256-2e4820641710","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":70,"box":{"x":68,"y":45,"width":801,"height":11}},{"id":"e11c5be0-e760-4473-8de3-ee4fa959413f","block_type":"box","text":"holders of the tracking stock may not have the same rights as holders of the company’s common stock.","page_number":70,"box":{"x":69,"y":60,"width":740,"height":11}},{"id":"31d293eb-6abb-41c5-ab9e-fcc341418ab0","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":70,"box":{"x":102,"y":83,"width":245,"height":11}},{"id":"9be6b418-7a76-4b47-bc5e-c9588121e3c5","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":70,"box":{"x":354,"y":83,"width":521,"height":11}},{"id":"7a2d259f-39c7-4c04-a7ba-0a00a301dd74","block_type":"box","text":"debt of the issuer, usually a financial institution. ETNs combine aspects of both bonds and ETFs. An ETN’s returns","page_number":70,"box":{"x":69,"y":98,"width":814,"height":11}},{"id":"d5b0e630-f408-47f4-8129-ca180011159c","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":70,"box":{"x":69,"y":113,"width":774,"height":11}},{"id":"a4e91def-110f-42b4-89fc-cd7560afdd9d","block_type":"box","text":"expenses. Similar to ETFs, ETNs are listed on an exchange and traded in the secondary market. However, unlike an","page_number":70,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"59874e59-7381-4ba5-a542-e8f1f3305c59","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":70,"box":{"x":70,"y":143,"width":831,"height":11}},{"id":"8b572dd2-77eb-4ee2-98c9-33a01cee1fa6","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":70,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d0796399-0520-4bc4-a969-84c018bfb884","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":70,"box":{"x":69,"y":173,"width":654,"height":11}},{"id":"d7a624af-760f-4edf-8127-59e207166901","block_type":"box","text":"The value of an ETN may be influenced by, among other things, time to maturity, level of supply and demand for","page_number":70,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"9c10d7c0-4c4a-41ec-9c63-2560cfa70c64","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":70,"box":{"x":68,"y":211,"width":748,"height":11}},{"id":"8f09a212-3b8c-422c-8372-ccd544b89aa3","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":70,"box":{"x":70,"y":226,"width":789,"height":11}},{"id":"45b0fcc8-fef9-40e0-baec-41ea8a5ada1f","block_type":"box","text":"geographic events that affect the reference instrument. An ETN that is tied to a reference instrument may not","page_number":70,"box":{"x":68,"y":241,"width":783,"height":11}},{"id":"2c71d79d-5d5a-4b67-8e21-891a79c82a55","block_type":"box","text":"replicate the per formance of the reference instrument. ETNs also incur cer tain expenses not incurred by their","page_number":70,"box":{"x":69,"y":256,"width":783,"height":11}},{"id":"aad80aa7-df11-44ee-9abe-6d52c4bd54bf","block_type":"box","text":"applicable reference instrument. Some ETNs that use leverage may, at times, be illiquid and may be difficult to","page_number":70,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"a624a36c-0d58-4d51-88d5-92b374ebd605","block_type":"box","text":"purchase or sell at a fair price. Levered ETNs are subject to the same risk as other instruments that use leverage in","page_number":70,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"9c430b78-36b7-4d98-830f-11ce6e369c4b","block_type":"box","text":"any form. While leverage allows for greater potential return, the potential for loss is also greater. Finally, additional","page_number":70,"box":{"x":69,"y":302,"width":814,"height":11}},{"id":"d6bffb4e-08fa-4f5e-8a99-09c9bb406b88","block_type":"box","text":"losses may be incurred if the investment loses value because, in addition to the money lost on the investment, the","page_number":70,"box":{"x":70,"y":317,"width":820,"height":11}},{"id":"907e96e0-2b0b-4bc3-be68-aac0a9b1a8f7","block_type":"box","text":"loan still needs to be repaid.","page_number":70,"box":{"x":70,"y":332,"width":202,"height":11}},{"id":"e9d522ec-dc55-446a-9d20-2cf26aac9213","block_type":"box","text":"Because the return on the ETN is dependent on the issuer’s ability or willingness to meet its obligations, the","page_number":70,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"e7ce9050-b967-4e00-8ec9-163b37befb56","block_type":"box","text":"value of the ETN may change due to a change in the issuer’s credit rating, despite no change in the underlying","page_number":70,"box":{"x":68,"y":370,"width":788,"height":11}},{"id":"0673030c-1233-495a-874f-0c50fb190a43","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":70,"box":{"x":69,"y":385,"width":810,"height":11}},{"id":"868d1719-3727-4890-b959-a2d30f15fb1f","block_type":"box","text":"difference in price may be due to the fact that the supply and demand in the market for ETN shares at any point in","page_number":70,"box":{"x":69,"y":400,"width":815,"height":11}},{"id":"da9815e4-946e-45e7-8f76-58d98b099cf1","block_type":"box","text":"time is not always identical to the supply and demand in the market for the assets underlying the reference","page_number":70,"box":{"x":68,"y":415,"width":766,"height":11}},{"id":"6200d7ea-6c4b-4bcd-92bb-05b84019a373","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":70,"box":{"x":70,"y":430,"width":279,"height":9}},{"id":"1707d67f-34e6-47e9-86f2-df2949608bae","block_type":"box","text":"There may be restrictions on the Fund’s right to redeem its investment in an ETN, which are generally meant to","page_number":70,"box":{"x":101,"y":453,"width":791,"height":11}},{"id":"5b755fd3-578e-4701-a0cc-1d0888594746","block_type":"box","text":"be held until maturity. The Fund’s decision to sell its ETN holdings may be limited by the availability of a secondary","page_number":70,"box":{"x":69,"y":468,"width":818,"height":11}},{"id":"5e35f687-770f-41b7-b144-2f911116800a","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":70,"box":{"x":69,"y":483,"width":547,"height":9}},{"id":"f520aea8-dd5a-46a3-8a9e-7298c587be78","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":70,"box":{"x":102,"y":506,"width":807,"height":11}},{"id":"ad994094-ec5c-4a66-bd3a-ed071fa95718","block_type":"box","text":"uphold, how the Funds characterize and treat ETNs for tax purposes. The timing and character of income and gains","page_number":70,"box":{"x":69,"y":521,"width":819,"height":11}},{"id":"7bc4a2c1-06de-4c60-8c35-c47fc8e8410c","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":70,"box":{"x":69,"y":536,"width":581,"height":11}},{"id":"0fa84b92-65d3-4c0d-b781-bf3a0820c381","block_type":"box","text":"Foreign Investments.","page_number":70,"box":{"x":102,"y":559,"width":152,"height":11}},{"id":"f3c4932b-9a83-4f4b-86d3-6f58607b8a83","block_type":"box","text":"Foreign Investment Risks.","page_number":70,"box":{"x":102,"y":582,"width":182,"height":11}},{"id":"f209bf4a-f4b8-4f5b-90db-5ad3624888e4","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":70,"box":{"x":291,"y":581,"width":567,"height":12}},{"id":"83858371-64f2-4c3d-a930-bd72d1981ef7","block_type":"box","text":"located in emerging market countries. These securities may be denominated in U.S. dollars or in a foreign currency.","page_number":70,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"251e9e89-f491-4e3d-8cad-a66b73606f4d","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":70,"box":{"x":70,"y":612,"width":774,"height":11}},{"id":"393e64f6-2a56-4380-938c-3a8d44a11286","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":70,"box":{"x":69,"y":627,"width":738,"height":11}},{"id":"e75b479a-b1e4-41cb-876c-2614cf8ab1ba","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":70,"box":{"x":102,"y":649,"width":782,"height":12}},{"id":"68ced50b-c320-4ac2-ba1b-837c8b5e0400","block_type":"box","text":"securities (but rather deemed to be U.S. securities) if (i) the company’s principal operations are conducted from the","page_number":70,"box":{"x":69,"y":664,"width":824,"height":12}},{"id":"c82e88f2-7c82-42f2-a8b9-8bbfbfb1883f","block_type":"box","text":"U.S., (ii) the company’s equity securities trade principally on a U.S. stock exchange, (iii) the company does a","page_number":70,"box":{"x":70,"y":680,"width":771,"height":11}},{"id":"73194144-c051-4a12-bc55-6ca22b6224a5","block_type":"box","text":"substantial amount of business in the U.S. or (iv) the issuer of securities is included in the Fund’s primary U.S.","page_number":70,"box":{"x":69,"y":695,"width":792,"height":11}},{"id":"133e1ee9-157b-42d4-8191-09714521d764","block_type":"box","text":"benchmark index.","page_number":70,"box":{"x":69,"y":710,"width":124,"height":9}},{"id":"55653b5e-d789-442d-86ae-069faed7cad1","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":70,"box":{"x":102,"y":732,"width":767,"height":12}},{"id":"174c2815-5e7c-47ef-9dc9-6fb9328ab0fe","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":70,"box":{"x":68,"y":748,"width":742,"height":11}},{"id":"030f29f6-428e-4fef-9eac-528b1413843f","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":70,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"c9649e06-3cbf-476f-8234-47b114c63a07","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":70,"box":{"x":69,"y":778,"width":780,"height":11}},{"id":"dafa88a1-9196-4552-9d2e-962373d5fc15","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":70,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"46c00d36-5f71-4de2-b3fb-f8a2d8e0b36a","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":70,"box":{"x":69,"y":808,"width":794,"height":11}},{"id":"546c1b3d-ff65-4c55-9c6e-b69c2e9753c2","block_type":"box","text":"securities and zero-coupon securities.","page_number":70,"box":{"x":69,"y":823,"width":268,"height":11}},{"id":"dafee25d-1b98-4786-ae46-08612c4ad862","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":70,"box":{"x":102,"y":846,"width":785,"height":11}},{"id":"220251be-f41d-46d6-82ae-554caa159ea0","block_type":"box","text":"taxes.","page_number":70,"box":{"x":68,"y":862,"width":42,"height":8}},{"id":"2f0e7af4-73fd-4acc-ae1a-eb20e0b4c3e1","block_type":"box","text":"To the extent that the underlying securities or other instruments held by a Fund trade on foreign exchanges or in","page_number":70,"box":{"x":101,"y":884,"width":798,"height":11}},{"id":"ffe6ffe0-a989-4201-b87a-e9369843c847","block_type":"box","text":"foreign markets that are closed when the securities exchange on which the Fund’s shares trade is open, there are","page_number":70,"box":{"x":68,"y":899,"width":815,"height":11}},{"id":"0be709a2-3c2c-40fd-8d9b-1ad64a826191","block_type":"box","text":"II-30","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"710f9e04-9004-4884-980f-90970be76ce3","block_type":"box","text":"NM1026U-5982643-70/241","page_number":70,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"516dd307-bffb-4f97-923b-70f6e33fd2aa","block_type":"box","text":"likely to be deviations between the current price of such an underlying security and the last quoted price for the","page_number":71,"box":{"x":70,"y":45,"width":792,"height":11}},{"id":"3c6f8e0a-39b9-44fb-a187-948b82b45dea","block_type":"box","text":"underlying security (i.e., the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":71,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"ef96d19d-d89f-44d2-b067-851f4f0e71ac","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":71,"box":{"x":70,"y":75,"width":809,"height":11}},{"id":"a8a2bda4-f50f-47cf-b8e6-afe39db5b537","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":71,"box":{"x":68,"y":90,"width":800,"height":11}},{"id":"a7219828-ae6b-4756-9f3b-ed8a2115d692","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":71,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"eda17678-98d3-45e4-9f17-8b2891549e27","block_type":"box","text":"Foreign Market Risk.","page_number":71,"box":{"x":102,"y":128,"width":144,"height":11}},{"id":"f151fb23-3d95-445e-9420-dd2ce40bfe2f","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":71,"box":{"x":254,"y":128,"width":652,"height":11}},{"id":"ffc894c0-8cfc-4232-9cb1-68a608d42497","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":71,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"b301b051-a76f-4e14-8cf0-a41dac1aceed","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":71,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"eab00ed9-0743-4e51-81fe-b28a4bb636bb","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":71,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"cdfd0dbd-8574-433c-b3d6-a8c04f798372","block_type":"box","text":"is subject to the risk that, because there are generally fewer investors on foreign exchanges and a smaller number of","page_number":71,"box":{"x":70,"y":188,"width":835,"height":12}},{"id":"97efb426-f9db-41e5-8f9e-e532c6891367","block_type":"box","text":"shares traded each day, it may be difficult for the Fund to buy and sell securities on those exchanges. In addition,","page_number":71,"box":{"x":69,"y":203,"width":810,"height":12}},{"id":"18a732a8-154b-46fa-bfac-816c2d31d09c","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":71,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"2b4e6957-db56-453c-b1cb-07af9cd214f3","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":71,"box":{"x":68,"y":234,"width":826,"height":11}},{"id":"7de44a27-1613-4eb2-9ea7-1b14616c6066","block_type":"box","text":"tarrifs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":71,"box":{"x":68,"y":249,"width":836,"height":11}},{"id":"86ba9e0a-a167-4cff-a588-1834eaf7a545","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":71,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"7107d0e2-2d4e-49a4-96a3-52c2d37ec1b4","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":71,"box":{"x":70,"y":279,"width":807,"height":11}},{"id":"1c51d900-a601-4916-95fc-cd466f7aaba4","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":71,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"54ca8d8f-6dd3-41a9-b476-677f4e2df44b","block_type":"box","text":"controls and/or sanctions may include the prohibition of, or restrictions on, the ability to own or transfer currency,","page_number":71,"box":{"x":69,"y":309,"width":810,"height":11}},{"id":"f981c7b5-9f39-4a8b-99e0-ce5f57544678","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":71,"box":{"x":69,"y":324,"width":813,"height":12}},{"id":"2d33e22b-ec10-4647-8974-df63ec5d0d9d","block_type":"box","text":"government, such as seizure of assets. Any of these actions could severely impair a Fund’s ability to purchase, sell,","page_number":71,"box":{"x":68,"y":339,"width":828,"height":12}},{"id":"8d50b0e0-8bd3-40e9-89f2-f74b93a7227b","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":71,"box":{"x":68,"y":355,"width":782,"height":11}},{"id":"804c608b-764a-4c2f-b3df-6032aac9ab79","block_type":"box","text":"transfer the Fund’s assets or income back into the United States, and could negatively impact the value and/or","page_number":71,"box":{"x":68,"y":370,"width":796,"height":11}},{"id":"48e7a352-893f-4fc5-bf72-3c18b79ca542","block_type":"box","text":"liquidity of such assets or otherwise adversely affect a Fund’s operations, causing the Fund to decline in value. Other","page_number":71,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"706d2e4b-7793-4df9-b2b5-acbd88501074","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":71,"box":{"x":70,"y":400,"width":768,"height":11}},{"id":"aa29d0fb-a3fd-4d44-b6c2-ca039a10d301","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":71,"box":{"x":68,"y":415,"width":813,"height":11}},{"id":"86b1195f-05d3-4772-aff1-1ec24e3e1e4a","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":71,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"858e2de5-fe87-40f1-b6fd-ca91865eefdf","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":71,"box":{"x":69,"y":445,"width":828,"height":12}},{"id":"64616adc-7dc3-484d-86a8-855a81377615","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":71,"box":{"x":68,"y":460,"width":782,"height":12}},{"id":"0f6ef259-9d71-44bc-94a6-13a56770dfa9","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":71,"box":{"x":69,"y":476,"width":830,"height":11}},{"id":"1df37a26-0544-4193-a66b-596551243a27","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":71,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"31e6ed5b-f650-4ea8-96b6-5b47f8bb66e6","block_type":"box","text":"Fund’s operations.","page_number":71,"box":{"x":70,"y":506,"width":130,"height":11}},{"id":"bdacc069-a75c-411b-b1ad-e2c76cd08181","block_type":"box","text":"Foreign Economy Risk.","page_number":71,"box":{"x":102,"y":529,"width":158,"height":11}},{"id":"99a3119c-5322-4152-ba15-4b6a315d22c5","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":71,"box":{"x":267,"y":528,"width":636,"height":12}},{"id":"8e0774e2-8bab-42e9-9a8d-33f4344443ab","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":71,"box":{"x":70,"y":543,"width":812,"height":12}},{"id":"b4ce4f4f-58f3-4193-b258-b7a52c317e2f","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":71,"box":{"x":69,"y":559,"width":835,"height":11}},{"id":"2dfe87da-7d1c-4cc7-a79f-afc9c0fa569e","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":71,"box":{"x":69,"y":574,"width":795,"height":11}},{"id":"ed6f8283-7334-4759-b952-eb5fcd1b3f8b","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":71,"box":{"x":69,"y":589,"width":817,"height":11}},{"id":"cf6de812-390a-463e-90fa-e4ad56bdc37e","block_type":"box","text":"measures.","page_number":71,"box":{"x":69,"y":606,"width":74,"height":7}},{"id":"2c4ded78-01fe-483b-b789-f78ad8224dde","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":71,"box":{"x":102,"y":627,"width":240,"height":11}},{"id":"71afcd68-97d6-4dcf-90fd-7533e8e21a1f","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":71,"box":{"x":349,"y":627,"width":534,"height":11}},{"id":"281b8384-d49c-4c0a-a925-5affa4f5cc1e","block_type":"box","text":"interest in foreign currencies, the value of a Fund that invests in foreign securities as measured in U.S. dollars will be","page_number":71,"box":{"x":70,"y":642,"width":838,"height":11}},{"id":"ec5ec100-d3f3-4721-ad85-2e1e5df5d9b1","block_type":"box","text":"affected favorably or unfavorably by changes in exchange rates. Generally, when the U.S. dollar rises in value against","page_number":71,"box":{"x":69,"y":657,"width":833,"height":11}},{"id":"da3444d3-9ecf-438c-b301-510d156bce07","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":71,"box":{"x":69,"y":672,"width":801,"height":11}},{"id":"ba3c6db8-a979-4ced-9d90-a5d502e84cb4","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":71,"box":{"x":69,"y":687,"width":808,"height":11}},{"id":"9a5561cb-b9a8-4c2b-aa46-03248b70deba","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":71,"box":{"x":68,"y":702,"width":816,"height":12}},{"id":"4ba23d36-c752-497b-a865-fb967ae6849a","block_type":"box","text":"risk,” means that a stronger U.S. dollar will reduce returns for U.S. investors while a weak U.S. dollar will increase","page_number":71,"box":{"x":69,"y":717,"width":814,"height":12}},{"id":"635671fd-9ddc-4354-8f66-377251eeb8f1","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":71,"box":{"x":68,"y":732,"width":771,"height":12}},{"id":"765492e2-0a6d-4378-bd30-c995943dcb04","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":71,"box":{"x":68,"y":748,"width":813,"height":11}},{"id":"bfcff80e-cf5d-4ec1-b3c2-52ec1afedd00","block_type":"box","text":"United States or abroad.","page_number":71,"box":{"x":70,"y":763,"width":172,"height":9}},{"id":"f6d4a6ea-dfe2-4a94-88ce-fef9df4ca1ad","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":71,"box":{"x":102,"y":786,"width":466,"height":11}},{"id":"e3c0c159-5986-4c20-adda-fdcc55289e8a","block_type":"box","text":"Many foreign governments supervise and","page_number":71,"box":{"x":575,"y":785,"width":293,"height":12}},{"id":"dea2583b-ee43-4a78-a715-52c58c2b99bd","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":71,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"776ce5dd-92de-40a6-8f1b-9cfb02885f22","block_type":"box","text":"not have laws to protect investors comparable to the U.S. securities laws. For example, some foreign countries may","page_number":71,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"32564848-8b92-4a7d-9271-fef0d58239cd","block_type":"box","text":"have no laws or rules against insider trading. Insider trading occurs when a person buys or sells a company’s","page_number":71,"box":{"x":69,"y":831,"width":778,"height":11}},{"id":"c53be73b-a54a-4b50-be3c-6ffdaed2f8e8","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":71,"box":{"x":69,"y":846,"width":794,"height":11}},{"id":"12e41e60-c074-4bd8-bdb8-932626df9d5f","block_type":"box","text":"necessarily the same as in the United States. If the accounting standards in another country do not require as much","page_number":71,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"360e0227-df8e-4dc1-8f3c-51694d1e9a12","block_type":"box","text":"detail as U.S. accounting standards, it may be harder for Fund management to completely and accurately determine a","page_number":71,"box":{"x":69,"y":876,"width":840,"height":11}},{"id":"a92b0a28-6afc-47b8-b163-cf3c82575a5d","block_type":"box","text":"company’s financial condition. In addition, the U.S. Government has from time to time in the past imposed","page_number":71,"box":{"x":69,"y":891,"width":760,"height":11}},{"id":"dfb036e1-c6da-493c-97f0-71a4b688c76c","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":71,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"137a5f03-7075-4568-968c-82cb58f5e949","block_type":"box","text":"II-31","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b8f281e-36a4-47fb-9ea8-16cf484ff1db","block_type":"box","text":"NM1026U-5982643-71/241","page_number":71,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"a0bec5b3-2377-46ca-ae4e-3b7242381a0e","block_type":"box","text":"restrictions should be reinstituted, it might become necessary for the Fund to invest all or substantially all of its","page_number":72,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"bf056003-d925-49b5-8b0f-c662a6620064","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":72,"box":{"x":69,"y":60,"width":793,"height":11}},{"id":"e03451d5-c10d-4b97-b8d2-4975a1f2105c","block_type":"box","text":"higher in foreign countries than they are in the United States. This reduces the amount the Fund can earn on its","page_number":72,"box":{"x":69,"y":75,"width":797,"height":11}},{"id":"4fa4c57b-eefa-4f99-b729-9a59834d3277","block_type":"box","text":"investments.","page_number":72,"box":{"x":70,"y":90,"width":89,"height":9}},{"id":"7f6b3b1b-5d66-4a1f-a1e9-1bb50850b9ae","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":72,"box":{"x":102,"y":113,"width":458,"height":11}},{"id":"9b567100-b969-4d11-ae6e-fdc182632118","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":72,"box":{"x":566,"y":113,"width":341,"height":11}},{"id":"f661eace-9d7d-4ce6-957a-fb7add132311","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":72,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"86cf816c-de1b-4904-b505-fc1601a21cd8","block_type":"box","text":"organized or new to the foreign custody business. In addition, there may be limited or no regulatory oversight over","page_number":72,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"f885ca3c-61bf-4266-9664-80aa535548d0","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":72,"box":{"x":68,"y":158,"width":838,"height":11}},{"id":"ae772d18-e1c5-4e94-b682-745b3bfa8e41","block_type":"box","text":"bank or depository or issuer of a security or any of their agents goes bankrupt. In addition, it is often more expensive","page_number":72,"box":{"x":69,"y":173,"width":835,"height":11}},{"id":"87f58e4e-0203-42f7-b588-75e8be26eb47","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":72,"box":{"x":68,"y":188,"width":777,"height":12}},{"id":"d6bae4d4-b57a-4084-8271-f5e707f0cef1","block_type":"box","text":"expense of investing in foreign markets reduces the amount a Fund can earn on its investments and typically results","page_number":72,"box":{"x":69,"y":203,"width":831,"height":12}},{"id":"c0a75d4c-be90-4221-adab-2c41a3298c97","block_type":"box","text":"in a higher operating expense ratio for the Fund as compared to investment companies that invest only in the United","page_number":72,"box":{"x":70,"y":218,"width":828,"height":12}},{"id":"7794df63-4c23-48b0-99a1-fe09a79ec4b8","block_type":"box","text":"States.","page_number":72,"box":{"x":69,"y":234,"width":49,"height":9}},{"id":"1621588f-6aaf-46ba-b928-1334e6d6dd3f","block_type":"box","text":"Publicly Available Information.","page_number":72,"box":{"x":102,"y":256,"width":210,"height":11}},{"id":"284b54af-8ea7-41e7-8677-e3e7d3535e34","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":72,"box":{"x":319,"y":256,"width":558,"height":12}},{"id":"d9041a44-b1df-476b-9a35-a1275cbc6273","block_type":"box","text":"than is available with respect to U.S. companies. Most foreign companies are also not subject to the uniform","page_number":72,"box":{"x":68,"y":271,"width":779,"height":12}},{"id":"9fff8fdb-cad1-40fc-8af9-50e437fa3a19","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":72,"box":{"x":69,"y":286,"width":793,"height":12}},{"id":"e6a51f2a-577f-497d-b14e-d3f90f3dd469","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":72,"box":{"x":68,"y":302,"width":834,"height":11}},{"id":"f9737c25-c261-4ed8-9b24-a25dbe1add3b","block_type":"box","text":"the New York Stock Exchange. Accordingly, a Fund’s foreign investments may be less liquid than, and their prices may","page_number":72,"box":{"x":68,"y":317,"width":841,"height":11}},{"id":"4b8b0a4b-dcc0-45f2-aaa2-5f0636e12e12","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":72,"box":{"x":69,"y":332,"width":813,"height":11}},{"id":"f813e9d2-ee19-434d-a0a2-73d691c79d3a","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":72,"box":{"x":68,"y":347,"width":827,"height":11}},{"id":"889a7f88-ebf1-4dad-89e5-e4bd97c88034","block_type":"box","text":"United States.","page_number":72,"box":{"x":70,"y":362,"width":99,"height":9}},{"id":"09b10800-14a5-467b-a333-9b5c0cac1995","block_type":"box","text":"Settlement Risk.","page_number":72,"box":{"x":102,"y":385,"width":116,"height":9}},{"id":"309ac314-780b-49b6-9465-2dbbe040e813","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":72,"box":{"x":225,"y":385,"width":669,"height":11}},{"id":"f4c03aa5-ad51-442a-a844-e30535db893d","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":72,"box":{"x":70,"y":400,"width":837,"height":11}},{"id":"11ea9b1f-fb22-4dcf-bd0d-9918f0a81f9a","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":72,"box":{"x":70,"y":415,"width":808,"height":11}},{"id":"3e460e0e-a59b-4756-866c-58cc4f95f895","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":72,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"b7f1ae22-be07-4b57-98fe-016d6448160d","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":72,"box":{"x":102,"y":453,"width":781,"height":11}},{"id":"b67ed673-5fb0-40c0-97dc-98bcf5d0ac5d","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":72,"box":{"x":69,"y":468,"width":771,"height":11}},{"id":"119342d1-c657-4f60-81c8-0ca847f9b25c","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":72,"box":{"x":69,"y":483,"width":797,"height":11}},{"id":"15832da2-31ef-43fc-b723-8ffb7b2e5fbb","block_type":"box","text":"these problems may make it difficult for a Fund to carry out transactions. If a Fund cannot settle or is delayed in","page_number":72,"box":{"x":68,"y":498,"width":802,"height":11}},{"id":"42fff774-936f-4c4a-88de-7557644c5e00","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":72,"box":{"x":69,"y":513,"width":812,"height":12}},{"id":"9b3521aa-1ba4-4f30-ac5b-b945443c8cbd","block_type":"box","text":"uninvested with no return earned thereon for some period. If a Fund cannot settle or is delayed in settling a sale of","page_number":72,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"92e958cc-9ae6-4efe-872f-d969318126da","block_type":"box","text":"securities, it may lose money if the value of the security then declines or, if it has contracted to sell the security to","page_number":72,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"abc5cccc-c885-4545-8acf-0d02c17bf33f","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":72,"box":{"x":69,"y":559,"width":539,"height":11}},{"id":"885c451d-c094-47d0-b576-670bbcef5e35","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":72,"box":{"x":102,"y":581,"width":781,"height":12}},{"id":"85019459-0ea5-47f6-a71a-9f9b22a60a3d","block_type":"box","text":"arise in respect of securities held by or to be transferred to a Fund. Compensation schemes may not exist or may","page_number":72,"box":{"x":69,"y":596,"width":810,"height":12}},{"id":"7f0d3d03-1f26-4786-bad2-745e86caa10f","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":72,"box":{"x":69,"y":612,"width":601,"height":11}},{"id":"be3c8c7b-ea40-4fd8-882f-51e54ec6e140","block_type":"box","text":"Sovereign Debt.","page_number":72,"box":{"x":102,"y":634,"width":111,"height":12}},{"id":"4209325b-4e08-423c-b258-b94ae7e76ae1","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":72,"box":{"x":221,"y":634,"width":653,"height":12}},{"id":"3ba368de-b08e-4876-a037-6235e2d7d105","block_type":"box","text":"controls the repayment of sovereign debt may not be able or willing to repay the principal and/or interest when due in","page_number":72,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"9febcbd2-6277-439b-96b2-8a01f9747c55","block_type":"box","text":"accordance with the terms of such debt. A governmental entity’s willingness or ability to repay principal and interest","page_number":72,"box":{"x":69,"y":664,"width":826,"height":12}},{"id":"97cad682-ec6c-4ecf-aeaf-bb613d3ae1bb","block_type":"box","text":"due in a timely manner may be affected by, among other factors, its cash flow situation, the extent of its foreign","page_number":72,"box":{"x":69,"y":680,"width":798,"height":11}},{"id":"bc044113-fa34-40dc-b7cf-77f9357a2998","block_type":"box","text":"reserves, the availability of sufficient foreign exchange on the date a payment is due, the relative size of the debt","page_number":72,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"99c085e7-280e-4a12-a65d-aad432e8ddff","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":72,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"113f6a1c-8dde-4d01-99f5-f23e375d6f9b","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":72,"box":{"x":69,"y":725,"width":790,"height":11}},{"id":"e2b1559e-76c6-46de-8565-1e299f534e75","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":72,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"9e9cb06d-141b-4c2a-99e2-e4961ec80c52","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":72,"box":{"x":70,"y":755,"width":805,"height":11}},{"id":"87ec9147-7f08-447a-89a9-a0a73f1d91d9","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":72,"box":{"x":69,"y":770,"width":772,"height":11}},{"id":"49544f37-60b4-4563-a4d2-7940d664450b","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":72,"box":{"x":69,"y":785,"width":789,"height":12}},{"id":"32fb8071-3e4f-4b61-ab42-94cdaaa095e0","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":72,"box":{"x":69,"y":801,"width":839,"height":11}},{"id":"67a251b8-0bc8-48f1-9c14-454c7e436388","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":72,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"c13b7a9c-2e9d-463e-8c46-48ea1c8ea822","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":72,"box":{"x":69,"y":831,"width":821,"height":11}},{"id":"2f7bb445-621b-4aa0-ba7d-92dcbfe40f07","block_type":"box","text":"debt.","page_number":72,"box":{"x":69,"y":846,"width":34,"height":9}},{"id":"db2f044f-07ee-4bff-967e-9261a9498a0a","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":72,"box":{"x":102,"y":869,"width":807,"height":11}},{"id":"3a8b5f21-78a0-45cf-a8bb-8a4b68887a6a","block_type":"box","text":"loans to governmental entities. In the event of a default by a governmental entity, there may be few or no effective","page_number":72,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"40300599-c217-4f38-b5ae-484c9451aa8a","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":72,"box":{"x":70,"y":899,"width":300,"height":11}},{"id":"d542e581-b884-4544-830c-b928e59aa04d","block_type":"box","text":"II-32","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6d1a8b4a-bc98-4724-aed1-32680e1dd578","block_type":"box","text":"NM1026U-5982643-72/241","page_number":72,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"963a08df-dd2c-46bc-93f0-ea444f4f9bf7","block_type":"box","text":"Withholding Tax Reclaims Risk.","page_number":73,"box":{"x":103,"y":45,"width":226,"height":11}},{"id":"6bbe1c5c-ea4b-490d-a0f8-46dc81bd1710","block_type":"box","text":"k.","page_number":73,"box":{"x":328,"y":52,"width":3,"height":2}},{"id":"d3d9bc32-a853-49c0-933d-962e0288d771","block_type":"box","text":"A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":73,"box":{"x":337,"y":45,"width":534,"height":11}},{"id":"f127b082-d2d2-429f-8baa-07c208e8e3fd","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":73,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"5b186922-43f9-422a-a0d3-b87f5085993f","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":73,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"ae7045b9-f3b8-4a02-9ec3-9f38e8dae694","block_type":"box","text":"refund is within the control of the tax authorities in such countries. Where a Fund expects to recover withholding","page_number":73,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"492e57c0-e639-4303-864f-eef296770f93","block_type":"box","text":"taxes, the net asset value of the Fund generally includes accruals for such tax refunds. Each Fund regularly evaluates","page_number":73,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"aa8b28c8-3a4d-419d-958f-250b2dc45d70","block_type":"box","text":"the probability of recovery. If the likelihood of recovery materially decreases, due to, for example, a change in tax","page_number":73,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"7f3e3c63-86ef-4681-aa0c-55fb0f537ce3","block_type":"box","text":"regulation or approach in the foreign country, accruals in a Fund’s net asset value for such refunds may be written","page_number":73,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"00969640-e734-451d-a0e3-d73527757a91","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":73,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"9b41b73d-c1f8-4093-add6-b35a6e7fd570","block_type":"box","text":"accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they","page_number":73,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"e31503a6-b22d-426d-94bd-d742f15b3b70","block_type":"box","text":"were shareholders during the accrual period. Conversely, if a Fund receives a tax refund that has not been previously","page_number":73,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"80112a95-4ac5-4b60-9ac6-ad498c7f3bd4","block_type":"box","text":"accrued, shareholders in the Fund at the time of the successful recovery will benefit from the resulting increase in","page_number":73,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"7d30f6d3-d4b2-4dcc-889a-f18e7be2e84c","block_type":"box","text":"the Fund’s net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase","page_number":73,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"5340dce6-5d9a-459c-9e76-1106d5c0f560","block_type":"box","text":"in the Fund’s net asset value.","page_number":73,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"da3c36a5-9828-4a8c-bcf0-fd0a3e7f15f4","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":73,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"3400beef-79d5-4b02-b53f-72d300a15014","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":73,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"8efc2006-1b5f-4411-9d61-8f5b5744c172","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":73,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"525a1041-3476-4584-9862-c63c4e8c3729","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":73,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"99648859-8b6b-490e-a5bd-6b169274cffe","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":73,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"3ff4d57a-6985-4acd-9b20-eb3544c9b1b3","block_type":"box","text":"slowdown in the United States may have a material adverse effect on a country’s economic conditions and, as a","page_number":73,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"652011a9-8280-469a-8789-1ad62ae08c25","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":73,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"39851d56-4a98-42b4-901a-3a4e60d6b50b","block_type":"box","text":"of interest or principal on U.S. Government debt, such as reaching the legislative “debt ceiling.” Such non-payment","page_number":73,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"686ed1f4-1a89-49ce-b2c7-669d3c37eb7f","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":73,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"07bd2991-0db3-499f-91ce-b3bbb9190f45","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":73,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"ac2a6b53-cecf-4d88-b2f0-e7b15279b946","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":73,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"628412b8-b494-48a2-8316-1a85953bb98d","block_type":"box","text":"If these relations were to worsen, it could adversely affect U.S. issuers as well as non-U.S. issuers that rely on the","page_number":73,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"ac540dbe-0789-4a07-8ddd-395a6c31d8ec","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":73,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"c36f8ac1-db31-4417-b8e0-8f80cbf238e3","block_type":"box","text":"trends were to continue, it may have an adverse impact on the U.S. economy and many of the issuers in which a","page_number":73,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"d448b7d2-036b-4632-8106-21635d350b24","block_type":"box","text":"Fund may invest.","page_number":73,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"a94b9a32-2800-481c-86a8-f59bbacb98a8","block_type":"box","text":"Funding Agreements.","page_number":73,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"2465199a-b07a-44f2-980d-d22835c270d4","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":73,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"4c700716-dc54-4ac7-97c2-d0027c509167","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":73,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"05029bf3-3889-47c8-8a5f-74bb1b1e2be6","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":73,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"f0f3b1ff-3362-4045-8136-2cb48f2899d6","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":73,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"31f9ab19-af72-4d61-9fcc-25ddf382ea5d","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":73,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"8a7a3b74-7e7c-44a4-ac4f-3d540345bbdd","block_type":"box","text":"general assets of the insurance company, and the contract is paid from the general assets of the insurance company.","page_number":73,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"63252049-cafd-44e7-979c-b447704b51a4","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":73,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"27683606-bf3e-4436-a5c7-1e1c02bb63e3","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":73,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"69750010-d6a3-438a-ad16-5c3d3a61a5a2","block_type":"box","text":"Guarantees.","page_number":73,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"a52c62cd-139a-47e3-87e7-a5e26597e9fc","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":73,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"9eef6b27-d6ea-42c2-8ca9-36889c097580","block_type":"box","text":"issuer of the security. Generally, the guarantor of a security (often an affiliate of the issuer) will fulfill an issuer’s","page_number":73,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"16a0e1ef-ab36-468b-81ee-c073bb9fb621","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":73,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"5def0d7f-511f-4d16-8327-f9fb5bdcf342","block_type":"box","text":"Illiquid Investments.","page_number":73,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"369aa89f-ee03-4541-81c6-2de9bbb4ade5","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":73,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"712f903f-93c2-4992-9e38-68c4b2b7a996","block_type":"box","text":"Fund would have invested more than 15% of its net assets in illiquid investments. An illiquid investment is any","page_number":73,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"077ab76f-9e21-450a-be50-176e5c5951ef","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":73,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"1094cb34-f736-4be7-930d-5535938035b2","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":73,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"d3e97229-b1e4-4d3a-8247-fb8a67914eba","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":73,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"9f3241e2-b5b0-45ca-a700-89a136c4f81b","block_type":"box","text":"no assurance that a security or instrument that is deemed to be liquid when purchased will continue to be liquid for","page_number":73,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"aedd43bf-384c-42be-9668-b2b764973e9b","block_type":"box","text":"as long as it is held by a Fund, and any security or instrument held by the Fund may be deemed an illiquid investment","page_number":73,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"9afc3c05-4964-4f36-975a-bc82d3ef6156","block_type":"box","text":"pursuant to the Fund’s liquidity risk management program. A Fund’s illiquid investments may reduce the returns of","page_number":73,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"8ec07222-4831-4b8e-9ffb-4523afa38ca2","block_type":"box","text":"the Fund because it may be difficult to sell the illiquid investments at an advantageous time or price. In addition, if a","page_number":73,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"96bdb56b-7dfd-4f26-b412-cc2ccd42de0a","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":73,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"a8778c8e-f22c-4f16-8ab7-01ed622f5234","block_type":"box","text":"selling their shares or the Fund’s net assets otherwise shrink, the Fund will need to dispose of liquid securities to","page_number":73,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"b938b626-2d84-4497-9458-9c8696e95bc4","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":73,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"4635fe49-f01f-49ac-9929-0b2e6d760090","block_type":"box","text":"investments exceed 15% of a Fund’s net assets, the Liquidity Rule (as defined below) and the Liquidity Program (as","page_number":73,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"7756939b-7ff9-4e13-8588-87e5eca932b9","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":73,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"3f1b11cd-77c7-45af-a3fe-bf3a61455e8e","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":73,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"4fcc455b-160e-45d1-8432-b4b462abe69b","block_type":"box","text":"Fund to dispose of its investments in a timely fashion and for a fair price as well as its ability to take advantage of","page_number":73,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"14a86f61-1fd8-442a-ad29-e6a401806be4","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":73,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"8ee78bfd-4bc2-4ff7-8bfd-599bfa11f0b0","block_type":"box","text":"II-33","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8d1bf4ad-d220-4a0e-845e-f6a337c054e1","block_type":"box","text":"NM1026U-5982643-73/241","page_number":73,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"39ab9cd6-9dba-4c07-8c31-a57683329e4c","block_type":"box","text":"cash, such as when the Fund redeems shares or pays dividends, and could result in the Fund borrowing to meet","page_number":74,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"a5a385dc-8441-4cd0-a680-2e87acc3142d","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":74,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"76bd2403-2345-4590-a319-0e6b01205bad","block_type":"box","text":"Index Funds.","page_number":74,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"1208d0ac-2308-4a93-90ff-549e4524abb7","block_type":"box","text":"Cash Flows; Expenses.","page_number":74,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"1d7ba751-0130-49e1-87a4-1c6f05dcc719","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":74,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"216f0f4c-04ee-4382-b30b-6f8ad5fe05c0","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":74,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"1b91e51a-93db-463d-86cd-61fce1c43877","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":74,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"9730f235-3d6e-4ee3-95d9-51d869dda7c8","block_type":"box","text":"while continuing to seek to replicate the total return of the Fund’s target index. Investors should also be aware that","page_number":74,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"543a53e9-ede8-438c-ae55-5fbfb6abb4e9","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":74,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"f90fcf3c-1387-47c8-9d59-720156a0761c","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":74,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"2655fa50-1ed2-4f4d-80f2-107ba098b6f5","block_type":"box","text":"(","page_number":74,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"adf1edee-d939-4139-8cec-5077ce8725e8","block_type":"box","text":"e.g.","page_number":74,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"900c3c77-1440-430b-93fa-72c6bdbc839e","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":74,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"5ff36961-358c-4c6b-be6a-060a7c08134c","block_type":"box","text":"replicate the total return of its target index, the Manager generally will not attempt to judge the merits of any","page_number":74,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"ee3d0f07-de30-44a6-af67-d8e895ccf4e7","block_type":"box","text":"par ticular security as an investment.","page_number":74,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"8034e4b5-1eb9-4417-a1f3-e87916091afa","block_type":"box","text":"Tracking Error Risk","page_number":74,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"30b79f5c-5385-4653-b55f-8a92194642a7","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":74,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"65076700-33aa-4b6b-8fd7-2e8a3d423e60","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":74,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"de35509d-c427-46d3-b51b-6541dc57e5d9","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":74,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"3ecd6f15-7a0e-42de-b605-2487f79c77f6","block_type":"box","text":"applicable, differences between a security’s price at the local market close and the Fund’s valuation of a security at","page_number":74,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"8b835520-25a4-4406-99c6-a0ec62c85219","block_type":"box","text":"the time of calculation of the Fund’s net asset value), differences in transaction costs incurred by the Fund, the","page_number":74,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"15e3f728-80df-4f86-80b9-d5d5628b19b1","block_type":"box","text":"Fund’s holding of uninvested cash, differences in timing of the accrual of or the valuation of dividends or other","page_number":74,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"9682b026-105e-4104-831f-5b338c839f1f","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":74,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"4ab99d9a-0045-4a1d-93a4-a64c5f713188","block_type":"box","text":"minimize the distribution of capital gains to shareholders, changes to the Underlying Index or the costs to the Fund of","page_number":74,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"3e79c56d-aeba-4a39-91dd-6bd5a68171ca","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":74,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"83241d20-1396-4a0f-95f0-2ab9f5dc1822","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":74,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"f49fece8-f788-464c-908d-07479c35898b","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":74,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"7104c2fd-110b-4e4d-bbf2-b74ec80fe09d","block_type":"box","text":"When an issuer is introduced by an index provider into an index tracked by a Fund, the Manager may conduct an","page_number":74,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"b1ccc35b-ba24-499b-85dd-189c8593d821","block_type":"box","text":"analysis on such issuer’s securities to identify and screen for outlier high risk behavior (such as rapid or unusual","page_number":74,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"24707422-56c7-4fea-bfc2-13d81eba8b49","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":74,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"ed2991c6-c06c-4541-a45c-650332ef83e7","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":74,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"4a0f825e-7cfa-4ccc-9493-4cdc630bb409","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":74,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"d7a64dc8-e88f-4d29-9066-29be2de4151f","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":74,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"180646b5-6d8f-45fa-8fb8-dfe317d598f0","block_type":"box","text":"index provider has sole discretion for the determination as to whether to continue to include the issuer’s securities in","page_number":74,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"1bae210f-98db-4394-8394-40bbfa4456a5","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":74,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"903d7e7f-61e5-4260-9afc-64f12d0d4eb7","block_type":"box","text":"exclude such securities from a Fund’s por tfolio and, if it does so, such Fund will be subject to increased tracking","page_number":74,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"6418d266-8189-40bf-acd9-4027652c490d","block_type":"box","text":"error due to the divergence in the securities included in its por tfolio from its underlying index. The application of the","page_number":74,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"6f6b75cb-956a-4d6c-92af-8150beb1833e","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":74,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"32dfda2e-5c1a-4ef6-a039-2fdf819190cf","block_type":"box","text":"and its affiliates (without any guarantees). The analysis and screening may not exclude any or all high risk securities","page_number":74,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"ed9bb927-875f-43a0-8032-f2064d0f0096","block_type":"box","text":"from an Underlying Index or a Fund’s por tfolio, and the inclusion of such securities will result in an adverse impact to","page_number":74,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"4115145e-be31-42c1-8811-d1d81faad239","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":74,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"9d7f239d-297c-4e23-9c60-fbfb8c9ac16a","block_type":"box","text":"S&P 500®","page_number":74,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"456a4a4b-3769-444a-ade0-e02572ad3338","block_type":"box","text":"0®","page_number":74,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"7d8c3e8e-2b0c-472f-96fb-a621c5b9a65e","block_type":"box","text":"Index (“S&P 500”).","page_number":74,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"f79c508f-8fb7-4095-9cb5-d28e905fcb26","block_type":"box","text":"“Standard & Poor’s","page_number":74,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"73e3ddb3-6f83-43d8-bf38-a60b96d6d2d6","block_type":"box","text":"®","page_number":74,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"6770a0f1-7466-4517-8355-f9b0f4b60c60","block_type":"box","text":",” “S&P","page_number":74,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"756c42cb-2bd2-4286-b11c-91ac98240e02","block_type":"box","text":"®","page_number":74,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"beabfe42-fb17-4e41-85d4-795989637784","block_type":"box","text":",” “S&P 500","page_number":74,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"ad60b681-a667-4790-aa3c-0f65429b326a","block_type":"box","text":"®","page_number":74,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"6eabbdfd-2c7d-4d8b-baf2-7d11777fc3b8","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":74,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"cf880018-81d4-4b1c-8b44-24bed6ad8115","block_type":"box","text":"are trademarks of S&P Global Inc. and have been licensed for use by cer tain mutual funds sponsored and advised by","page_number":74,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"28b3f521-b67b-491d-9293-c0d9b1c226d3","block_type":"box","text":"BlackRock or its affiliates (“BlackRock Funds”). No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":74,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"eb2094ef-df00-466d-9af0-25b063faebbb","block_type":"box","text":"of S&P Global Inc. S&P makes no representation regarding the advisability of investing in any Fund. S&P makes no","page_number":74,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"ad0574f7-c59a-4215-9211-7d335d6c6b95","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":74,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"71d7d657-6b65-4ffd-be23-fc1cc24856f1","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund par ticularly or the ability of the S&P 500 to","page_number":74,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"90bb38df-dd47-41ef-acd9-d637bd554dc2","block_type":"box","text":"track general stock market per formance. S&P’s only relationship to cer tain Funds is the licensing of cer tain","page_number":74,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"283eb132-d7ee-48fb-81fc-8076dbf38bac","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":74,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"6e2b20d7-5a85-4d12-84d9-1dd456b88d0f","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":74,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"6dc6a27b-01c2-4b1d-99a9-f87be4566117","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. S&P is not responsible for and has not","page_number":74,"box":{"x":70,"y":778,"width":803,"height":11}},{"id":"ceeec410-547c-4c9c-855c-cf586d499da0","block_type":"box","text":"par ticipated in the determination of the prices and amount of any Fund or the timing of the issuance or sale of","page_number":74,"box":{"x":70,"y":793,"width":787,"height":11}},{"id":"a27288b3-16ce-45a5-b6e4-88f5d15a94b8","block_type":"box","text":"shares of a Fund or in the determination or calculation of the equation by which a Fund is to be conver ted into cash.","page_number":74,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"4da62643-0efd-4ccc-89e7-b26f644b25a4","block_type":"box","text":"S&P has no obligation or liability in connection with the administration, marketing or trading of any Fund.","page_number":74,"box":{"x":69,"y":823,"width":742,"height":12}},{"id":"c6c87354-8033-4a03-934d-ee3de3651aa3","block_type":"box","text":"S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index or any data included","page_number":74,"box":{"x":102,"y":846,"width":761,"height":11}},{"id":"181623f4-1634-4e15-82e4-af1dd0a37ebb","block_type":"box","text":"therein, and S&P shall have no liability for any errors, omissions, or interruptions therein. S&P makes no warranty,","page_number":74,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"c9257c78-4b61-4e47-b8eb-6324ff657c27","block_type":"box","text":"express or implied, as to results to be obtained by a Fund, owners of shares of a Fund, or any other person or entity","page_number":74,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"63acc46b-1c55-408a-b48a-e29de390f81c","block_type":"box","text":"from the use of the S&P 500 Index or any data included therein. S&P makes no express or implied warranties and","page_number":74,"box":{"x":68,"y":891,"width":815,"height":11}},{"id":"506debfd-6642-4120-a9b9-c09efbbc338c","block_type":"box","text":"expressly disclaims all warranties of merchantability or fitness for a par ticular purpose or use with respect to the S&P","page_number":74,"box":{"x":69,"y":906,"width":840,"height":12}},{"id":"c457e502-dcb4-492c-b9c8-c33b8ce1bf36","block_type":"box","text":"II-34","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80e0ce6e-a1af-444e-9d57-9eeb0b73babf","block_type":"box","text":"NM1026U-5982643-74/241","page_number":74,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"3ff908f4-dc12-44a2-8a12-c618e164710d","block_type":"box","text":"500 Index or any data included therein. Without limiting any of the foregoing, in no event shall S&P have any liability","page_number":75,"box":{"x":69,"y":45,"width":826,"height":11}},{"id":"0db3302f-0946-4fa2-aa88-7281cd7b4567","block_type":"box","text":"for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility","page_number":75,"box":{"x":68,"y":60,"width":827,"height":11}},{"id":"361046f4-cd46-4446-a7e8-5a2d64f14d1e","block_type":"box","text":"of such damages.","page_number":75,"box":{"x":69,"y":75,"width":125,"height":11}},{"id":"300b7b11-79e4-4cbb-8d56-ebee87fab7c4","block_type":"box","text":"Russell®","page_number":75,"box":{"x":102,"y":98,"width":52,"height":9}},{"id":"1e4c196e-886d-40fb-8803-a7332780925a","block_type":"box","text":"l®","page_number":75,"box":{"x":154,"y":98,"width":6,"height":4}},{"id":"5dbb76c4-7193-4b5c-8b55-cd4ec8ae2757","block_type":"box","text":"Indexes.","page_number":75,"box":{"x":166,"y":98,"width":57,"height":9}},{"id":"a99bf28a-f176-49e2-a4b2-8a521e2e64ce","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Russell","page_number":75,"box":{"x":231,"y":98,"width":611,"height":11}},{"id":"5c8436a3-9e3d-4e75-94c2-cff57d481002","block_type":"box","text":"Investments. Russell Investments is not responsible for and has not reviewed any Fund nor any associated literature","page_number":75,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"2132488e-1ebe-4340-9e3f-7883d83eddd1","block_type":"box","text":"or publications and Russell Investments makes no representation or warranty, express or implied, as to their","page_number":75,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"94ea20e1-930f-4d79-b50b-a3741fa2428b","block_type":"box","text":"accuracy, or completeness, or otherwise.","page_number":75,"box":{"x":69,"y":143,"width":291,"height":11}},{"id":"ce1fbe72-2a20-4f3d-a61f-5b5b0c627c56","block_type":"box","text":"Russell Investments reserves the right, at any time and without notice, to alter, amend, terminate or in any way","page_number":75,"box":{"x":102,"y":166,"width":794,"height":11}},{"id":"10cbb0a8-9144-4ee8-a541-a87df7ac71fd","block_type":"box","text":"change a Russell Index. Russell Investments has no obligation to take the needs of any par ticular Fund or its","page_number":75,"box":{"x":69,"y":181,"width":778,"height":11}},{"id":"61fd27dd-a934-4ad2-947b-ff45b8dce973","block_type":"box","text":"par ticipants or any other product or person into consideration in determining, composing or calculating the Russell","page_number":75,"box":{"x":70,"y":196,"width":815,"height":11}},{"id":"955e923d-e872-4424-b240-9213f2761f51","block_type":"box","text":"Index.","page_number":75,"box":{"x":70,"y":211,"width":40,"height":9}},{"id":"c9f1e74b-1cc0-407c-81c1-d6455ef643dd","block_type":"box","text":"Russell Investments’ publication of the Russell Indexes in no way suggests or implies an opinion by Russell","page_number":75,"box":{"x":102,"y":234,"width":766,"height":11}},{"id":"7248f183-e3bc-4b91-a323-be8ae945347d","block_type":"box","text":"Investments as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell","page_number":75,"box":{"x":70,"y":249,"width":833,"height":11}},{"id":"67749034-fe9f-47e9-991b-0b7cbf6aca74","block_type":"box","text":"Indexes is based. Russell Investments makes no representation, warranty, or guarantee as to the accuracy,","page_number":75,"box":{"x":70,"y":264,"width":765,"height":11}},{"id":"6d5527b6-7768-494d-9503-3702ff606cdc","block_type":"box","text":"completeness, reliability, or otherwise of the Russell Indexes or any data included in the Russell Indexes. Russell","page_number":75,"box":{"x":69,"y":279,"width":807,"height":11}},{"id":"2bb325dd-a55e-447d-a7a4-eea8140352c4","block_type":"box","text":"Investments makes no representation or warranty regarding the use, or the results of use, of the Russell Indexes or","page_number":75,"box":{"x":70,"y":294,"width":826,"height":11}},{"id":"e1ef351b-4d11-4014-b249-2a733328e8e5","block_type":"box","text":"any data included therein, or any security (or combination thereof) comprising the Russell Indexes. Russell","page_number":75,"box":{"x":69,"y":309,"width":757,"height":11}},{"id":"0c043abe-f7b2-4195-82b9-274a4d728d27","block_type":"box","text":"Investments makes no other express or implied warranty, and expressly disclaims any warranty, of any kind,","page_number":75,"box":{"x":70,"y":324,"width":767,"height":11}},{"id":"ac0507ac-d4f1-40d9-9d1e-3913fcf337d5","block_type":"box","text":"including, without means of limitation, any warranty of merchantability or fitness for a par ticular purpose with respect","page_number":75,"box":{"x":70,"y":339,"width":833,"height":12}},{"id":"3c4dbf7c-a5ab-458a-a0de-2328666e4dcd","block_type":"box","text":"to the Russell Indexes or any data or any security (or combination thereof) included therein.","page_number":75,"box":{"x":68,"y":355,"width":651,"height":11}},{"id":"0fe630e0-4886-49a8-ab23-0f5db941562f","block_type":"box","text":"MSCI Indexes.","page_number":75,"box":{"x":102,"y":377,"width":100,"height":9}},{"id":"626a3fbb-8c12-468a-9cb6-39d34cc2ce2c","block_type":"box","text":"The MSCI Europe, Australasia and Far East (Capitalization Weighted) Index (“EAFE Index”) and the","page_number":75,"box":{"x":209,"y":377,"width":696,"height":12}},{"id":"4330f26c-a2e1-436c-a252-40f4de2ff433","block_type":"box","text":"MSCI All-Country World ex-US Index (“ACWI ex-US Index” and together with the EAFE Index, the “MSCI Indexes” and","page_number":75,"box":{"x":70,"y":392,"width":818,"height":12}},{"id":"55db1a62-1eb9-4d31-ab4f-863e8e96bab2","block_type":"box","text":"individually an “MSCI Index”) are the exclusive proper ty of MSCI, Inc. (“MSCI”). The EAFE Index and ACWI ex-US Index","page_number":75,"box":{"x":70,"y":407,"width":837,"height":12}},{"id":"7b0fa908-92ea-44b5-b852-d2fec08e69ba","block_type":"box","text":"are service marks of MSCI and have been licensed for use by the Manager and its affiliates.","page_number":75,"box":{"x":69,"y":423,"width":658,"height":11}},{"id":"b2a72dba-e23a-4a43-bb39-2567f7d0788b","block_type":"box","text":"No Fund is sponsored, endorsed, sold or promoted by MSCI. MSCI makes no representation or warranty, express","page_number":75,"box":{"x":102,"y":445,"width":806,"height":11}},{"id":"c6d893af-6c95-4675-ac3c-8232f2b4426d","block_type":"box","text":"or implied, to the owners of shares of a Fund or any member of the public regarding the advisability of investing in","page_number":75,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"dbb8a830-f34f-4fe6-bbae-099268eccb14","block_type":"box","text":"securities generally or in a Fund par ticularly or the ability of an MSCI Index to track general stock market","page_number":75,"box":{"x":69,"y":475,"width":743,"height":12}},{"id":"9eed5bca-6a1b-484a-bb7c-b9352f6069ec","block_type":"box","text":"per formance. MSCI is the licensor of cer tain trademarks, service marks and trade names of MSCI and of the MSCI","page_number":75,"box":{"x":70,"y":491,"width":819,"height":11}},{"id":"c5f14722-f17c-48dc-bafe-eac46ca25ec0","block_type":"box","text":"Indexes. MSCI has no obligation to take the needs of any Fund or the owners of shares of a Fund into consideration","page_number":75,"box":{"x":70,"y":506,"width":824,"height":11}},{"id":"9dbce69d-88b6-4497-8b68-c5b419ab1b9b","block_type":"box","text":"in determining, composing or calculating an MSCI Index. MSCI is not responsible for and has not par ticipated in the","page_number":75,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"fa425a8b-1bf1-4f84-9c77-b2bc34f823c9","block_type":"box","text":"determination of the timing of, prices at, or quantities of shares of any Fund to be issued or in the determination or","page_number":75,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"a52cbaf4-0a9b-4f1e-9336-645a635ec7b6","block_type":"box","text":"calculation of the equation by which the shares of a Fund are redeemable for cash. MSCI has no obligation or liability","page_number":75,"box":{"x":69,"y":551,"width":835,"height":11}},{"id":"270df1cd-9a31-4b15-bd2a-528c2bb3c4d6","block_type":"box","text":"to owners of shares of a Fund in connection with the administration, marketing or trading of the Fund.","page_number":75,"box":{"x":68,"y":566,"width":724,"height":11}},{"id":"e7951b86-6c8b-4073-bdb4-f131bacabf18","block_type":"box","text":"Although MSCI shall obtain information for inclusion in or for use in the calculation of an MSCI Index from","page_number":75,"box":{"x":101,"y":589,"width":751,"height":11}},{"id":"13fe7db4-b1dc-4375-adf9-f9dcba1e73fa","block_type":"box","text":"sources which MSCI considers reliable, MSCI does not guarantee the accuracy and/or the completeness of the MSCI","page_number":75,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"83b4923d-c2bc-4f2a-a8b2-1afe0b2a1477","block_type":"box","text":"Index or any data included therein. MSCI makes no warranty, express or implied, as to results to be obtained by","page_number":75,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"6351607d-3f6c-483f-97bb-81aa16667c29","block_type":"box","text":"licensee, licensee’s customers and counterpar ties, owners of shares of a Fund, or any other person or entity from","page_number":75,"box":{"x":70,"y":634,"width":812,"height":11}},{"id":"c3e4f7fd-9ecc-4de0-9fb8-c9124d91b4d4","block_type":"box","text":"the use of an MSCI Index or any data included therein in connection with the rights licensed hereunder or for any","page_number":75,"box":{"x":68,"y":649,"width":804,"height":12}},{"id":"07c1f3aa-01b1-4e16-ac19-0ee93be8d969","block_type":"box","text":"other use. MSCI makes no express or implied warranties, and hereby expressly disclaims all warranties of","page_number":75,"box":{"x":69,"y":664,"width":758,"height":12}},{"id":"a0e882c0-48b1-4722-b73c-e4b8bcfe0fae","block_type":"box","text":"merchantability or fitness for a par ticular purpose with respect to an MSCI Index or any data included therein. Without","page_number":75,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"074de88d-34f1-4405-a2e2-2ef0fed37c6c","block_type":"box","text":"limiting any of the foregoing, in no event shall MSCI have any liability for any direct, indirect, special, punitive,","page_number":75,"box":{"x":70,"y":695,"width":777,"height":11}},{"id":"60787c79-8f3f-4c61-ae1b-a6eb3d92908f","block_type":"box","text":"consequential or any other damages (including lost profits) even if notified of the possibility of such damages.","page_number":75,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"1dec9a72-94dd-416b-86fb-9d4d13148da9","block_type":"box","text":"Financial Times Stock Exchange (“FTSE”) Indexes.","page_number":75,"box":{"x":102,"y":733,"width":355,"height":11}},{"id":"124ee761-2803-48c4-8f3a-6ff3228e1d2d","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any","page_number":75,"box":{"x":465,"y":733,"width":422,"height":11}},{"id":"668e14d8-cfff-4dc0-aa3d-c86194507888","block_type":"box","text":"way affiliated with FTSE. FTSE is not responsible for and has not reviewed any Fund nor any associated literature or","page_number":75,"box":{"x":68,"y":748,"width":824,"height":11}},{"id":"5ececa31-f403-4cd2-8b49-657d359fb1b2","block_type":"box","text":"publications and FTSE makes no representation or warranty, express or implied, as to their accuracy, or","page_number":75,"box":{"x":70,"y":763,"width":736,"height":11}},{"id":"1036d555-88a9-449b-a793-27502ce8bceb","block_type":"box","text":"completeness, or otherwise.","page_number":75,"box":{"x":69,"y":778,"width":202,"height":11}},{"id":"3a470833-fedc-4197-95a6-ab15af148fab","block_type":"box","text":"FTSE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change a FTSE","page_number":75,"box":{"x":102,"y":801,"width":794,"height":11}},{"id":"43c41a31-b340-42e0-8d90-ecee8d5950be","block_type":"box","text":"Index. FTSE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":75,"box":{"x":70,"y":816,"width":799,"height":11}},{"id":"e014d129-8aa0-41b5-8474-4ee415d23cf7","block_type":"box","text":"person into consideration in determining, composing or calculating the FTSE Index.","page_number":75,"box":{"x":70,"y":831,"width":587,"height":11}},{"id":"69e35938-c5a3-49f2-97ea-a18de4653493","block_type":"box","text":"Bloomberg Indexes.","page_number":75,"box":{"x":102,"y":854,"width":139,"height":11}},{"id":"f600fd29-01bd-4c17-8335-4794edad8557","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Bloomberg","page_number":75,"box":{"x":249,"y":853,"width":636,"height":12}},{"id":"62964c2e-e370-4375-bd62-b8ea8d7879b6","block_type":"box","text":"Finance L.P. and its affiliates (collectively, “Bloomberg”). Bloomberg is not responsible for nor has it reviewed any","page_number":75,"box":{"x":70,"y":869,"width":809,"height":11}},{"id":"9bd66567-84a6-411f-a909-6e96e4a866fa","block_type":"box","text":"Fund nor any associated literature or publications, and Bloomberg makes no representation or warranty, express or","page_number":75,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"bed7bca9-196a-4782-97e2-5b135ac98aea","block_type":"box","text":"implied, as to their accuracy, or completeness, or otherwise.","page_number":75,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"1e497f8f-ea67-42ea-a7a0-4de3306ad8c9","block_type":"box","text":"II-35","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7b756a44-df47-49c6-a80c-122eb62710c0","block_type":"box","text":"NM1026U-5982643-75/241","page_number":75,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"4502561c-0645-427c-a99b-cdae50abb422","block_type":"box","text":"Bloomberg reserves the right, at any time and without notice, to alter, amend, terminate or in any way change a","page_number":76,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"18f0bb9e-e941-4297-bea7-09c5bb950323","block_type":"box","text":"Bloomberg Index. Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":76,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"67dcc5c9-d101-4082-af03-c2da944e3a33","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":76,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"7c596dfe-6a82-457d-be56-5233175893b0","block_type":"box","text":"ICE BofA Indexes.","page_number":76,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"92eca160-2be1-4bf8-b0d5-f4fc81d415ad","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":76,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"fbc7b43a-8961-4a87-ba9d-eb37a066044f","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":76,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"a1dfc88a-8b3c-4aaa-8063-f085e19abd9e","block_type":"box","text":"not the issuer or producer of the ICE BofA Indices, and its name is a trademark and service mark of its owner used","page_number":76,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"6e9575e4-1c3e-428d-8ad5-289dffce8f2e","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":76,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"cc69bce5-0f4f-4c0f-be49-daee65349680","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":76,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"d38eee37-8650-491f-9ac3-f3fad38286ae","block_type":"box","text":"completeness, or otherwise.","page_number":76,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"3cf01aba-493f-40af-8a37-b2034fb6bb5e","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":76,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"80448275-cd22-4a68-8744-51d9e865759e","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":76,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"d17b7358-2e47-4533-84f3-a12e2735a16d","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":76,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"ebf4e29f-37bd-4b0e-b111-13261feb36eb","block_type":"box","text":"Indexed and Inverse Securities.","page_number":76,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"eed07f38-fda3-49f9-809f-47d3d20d4999","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":76,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"04c24fac-bfd7-4042-a77d-94741d91d2e5","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":76,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"4d38568a-f17e-4171-b0a1-afbb6768cc8e","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":76,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"07a51104-d446-4f0d-99fe-22c681cdd8c3","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":76,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"17cffc6b-6a42-4fa3-841b-e29888e3f693","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":76,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"153e5352-401c-4c14-ad7f-c7369dc73291","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":76,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"45285ec9-70e2-4b5d-93c5-591bd7a1abe5","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":76,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"e7178fb3-e6ab-4f7c-a5ea-e0440f932b2e","block_type":"box","text":"or “residual interest bonds” on which the interest rates vary inversely with a floating rate (which may be reset","page_number":76,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"cb97c9ac-e1c9-4661-9cb5-1b1d65b7737f","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":76,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"4b9cc057-e8fa-421a-95c4-1875cb9885cf","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":76,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"52db28ab-e080-4b7c-acba-87ad2f50d799","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":76,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"a59144f2-d76e-49f4-bfb1-e89d5ff064ef","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":76,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"cfe89e95-6256-4092-be58-5404106a9e8a","block_type":"box","text":"increase or decrease in value in response to changes, as an illustration, in market interest rates at a rate that is a","page_number":76,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"f9d81232-6818-44ab-8c19-60a665c869f4","block_type":"box","text":"multiple of the rate at which fixed-rate securities increase or decrease in response to such changes. As a result, the","page_number":76,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"1ec12eb2-ab12-4cf5-808a-790a0b467f0b","block_type":"box","text":"market values of such securities will generally be more volatile than the market values of fixed-rate securities. To","page_number":76,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"30769f00-01a0-4620-9989-cb9b75fb466d","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":76,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"173c3fc9-259a-4f0f-842e-eea25a4f3e7b","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":76,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"514a6f76-92b4-4389-92b1-c5913810f662","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":76,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"73c2190d-adc5-44fe-800f-63cff326b9c2","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":76,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"602149e1-3198-4f5f-91ac-14916eec047a","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":76,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"3880a66b-aa6f-42a7-beea-df9896ed8263","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":76,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"82de3bd5-b1ae-464e-b56c-9ca7b2fb37e3","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":76,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"38b61049-b222-48a0-9127-b1e7a6b194b1","block_type":"box","text":"includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, a Fund","page_number":76,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"9a000a3d-b918-4325-8e0a-c504ede3a9a3","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":76,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"53b42acb-3952-4e26-b7a7-eb02c5f21e98","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":76,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"53a351f2-622e-4033-a0c3-b42cb570cc7b","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":76,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"37df2db8-685e-4ea0-94c1-556df6798342","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":76,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"0445262e-f2a1-4476-b5ed-57242487109c","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":76,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"c1c2a07f-d2dd-440f-b509-b3dafb4445c1","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":76,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"d9968510-2858-45c1-9224-42642205e45a","block_type":"box","text":"Inflation Risk.","page_number":76,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"456cffd7-8408-4cde-9b60-0adc506fccfd","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":76,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"71e11c85-4c59-4b22-badd-8857d54ecfb3","block_type":"box","text":"value of assets or income from investments will be less in the future as inflation decreases the value of money. As","page_number":76,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"71c9fa60-4f1f-4942-b91b-e44432a209b0","block_type":"box","text":"inflation increases, the present value of a Fund’s assets can decline as can the value of a Fund’s distributions.","page_number":76,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"64693b4a-f3e3-4c7b-81c5-1aa97b38a9f0","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":76,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"97d8e23b-dd11-4c43-b737-a27426100d4a","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":76,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"c154f456-0962-493c-bfac-c242239e86ac","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":76,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"4ad0c4e3-bbf4-474f-af4d-93379fb2fa36","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":76,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"ca256b18-1c49-49f3-9de4-a7274aacb6b8","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":76,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"424c07fa-f9df-4c5a-990b-b54fe102d4e9","block_type":"box","text":"availability may be limited and a Fund may not be able to buy any shares at the offering price, or if it is able to buy","page_number":76,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"86e011fc-6664-4ee8-ae4c-305a4fbc29f6","block_type":"box","text":"shares, it may not be able to buy as many shares at the offering price as it would like. In addition, the prices of","page_number":76,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"9c40f435-fed0-4539-8ffb-7882b450c85a","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":76,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"3c169161-1fec-403c-92f5-80ed163164ef","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":76,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"ac36623f-ae58-47b7-a916-a731c081ee69","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":76,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"a2968d97-8a52-42e3-9c70-2d684e56cfa1","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":76,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"b61c44bb-9513-48cf-85d5-83fdac12a6d0","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":76,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"f15812c6-59d5-4cc6-ab28-94f0818d8fdf","block_type":"box","text":"II-36","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7caf23ba-fd1a-4e60-97e2-4fc27f4604cd","block_type":"box","text":"NM1026U-5982643-76/241","page_number":76,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"1ce96f59-4ebf-4bf4-bd1f-6c58ba9c4b54","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":77,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"e2670d8e-ed95-4e95-a400-f69c309a92a7","block_type":"box","text":"Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when it","page_number":77,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"2093a6e1-93f9-4292-baa2-0df774c25de3","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":77,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"5b31402c-223e-4fd0-828c-7c7d577c79d3","block_type":"box","text":"decrease. Securities issued in IPOs are subject to many of the same risks as investing in companies with smaller","page_number":77,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"7d78c562-53c8-4f27-b0ce-b2b74d9f3527","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":77,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"26a942a7-6447-45ff-9fec-8cd6f3fe3482","block_type":"box","text":"be available for very limited periods.","page_number":77,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"ec0f39fd-b0d8-4cae-a3bc-43dbc34b92b1","block_type":"box","text":"Investment in Emerging Markets.","page_number":77,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"8d442923-d998-4f06-8e59-dff488aeed05","block_type":"box","text":"General.","page_number":77,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"199f4195-08a4-43a6-bbbe-4c3cd073d567","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":77,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"246852af-2d0f-4ace-98d7-4108fc352da6","block_type":"box","text":"markets. Unless otherwise provided in a Fund’s Prospectus, a country with an emerging capital market is any country","page_number":77,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"9ee59818-cf3c-409a-85c5-d5477172f59f","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":77,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"f6ae9c6a-a3d9-428d-b170-a994de71cd3f","block_type":"box","text":"the International Finance Corporation, or determined by the World Bank to have a low, middle or middle upper income","page_number":77,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"2f2c414b-63b2-497f-b4b6-3f67f56c21ba","block_type":"box","text":"economy; (ii) classified by the United Nations or its authorities to be developing; and/or (iii) included in a broad-based","page_number":77,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"04a29b7c-1bce-4d48-b296-ac6e5433b18e","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":77,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"66e0d81b-5da7-4cb5-8b2a-f8f064409601","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":77,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"998b2e6e-4078-44fa-b100-822a5e3338a3","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":77,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"95de2fb0-196c-47c7-860f-cd2878244261","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":77,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"af9e858a-b040-4906-99f5-5f72e5ea6171","block_type":"box","text":"such as (i) low or non-existent trading volume, resulting in market illiquidity and increased volatility in prices for such","page_number":77,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"657de94c-2add-4d9b-a60c-1b82b602e5d3","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":77,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"92101b62-6fb6-496e-8dd9-19660396c3d1","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":77,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"c769756a-5317-43be-a964-8c73aac2a1e9","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":77,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"7db1220c-f050-42b9-917b-e8c0dcf3135e","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":77,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"fc70acd9-c40b-4173-a130-d72ad4439030","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":77,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"0072f639-0c8c-4a13-8a27-d195f7e07228","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":77,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"a9896eae-4da4-4306-b030-3d94c9eaf884","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":77,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"234721ed-9546-484f-87fe-9208db394231","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":77,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"e73bfea4-51bc-47ba-9c7e-8a554e42a532","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":77,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"e7b35325-25de-464f-9289-a19e6824069b","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":77,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"c80daa97-169d-41dd-b24f-d2f49749457e","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":77,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"369d3ae7-4f67-4add-95da-f755ae1f2e0b","block_type":"box","text":"developed countries. In such a dynamic environment, there can be no assurance that any or all of these capital","page_number":77,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"cc89041a-4679-4130-94bc-5ac0cdf46051","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":77,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"6a413180-d36e-4a40-b320-713989732b9e","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":77,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"9c9a75b8-47d9-4f8c-b3f3-6bdcf5b2c699","block_type":"box","text":"fully settled. There is no assurance that such expropriations will not reoccur. In such an event, it is possible that a","page_number":77,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"5ee35656-13c9-4437-90fb-1737d629bea3","block_type":"box","text":"Fund could lose the entire value of its investments in the affected market. As a result the risks described above,","page_number":77,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"3b0b2f61-63bf-4f4d-bb95-e9b46645229c","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":77,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"9e4027f3-8b30-4d87-a997-a6e97a5ab4d5","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":77,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"1237fe91-0026-4496-9af6-1d1353c162de","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":77,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"56b8f6e9-9f5e-404b-9892-e9334882e9e8","block_type":"box","text":"the limited volume of trading in securities in these countries may make investments in the countries illiquid and more","page_number":77,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"22c408b6-f72d-402d-be69-6c080a49a7b2","block_type":"box","text":"volatile than investments in more established markets.","page_number":77,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"f01cc89e-10bb-41e5-95ba-773cf79a6b25","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":77,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"93e658f4-7ad8-4ee0-8908-e78cfb429fb4","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":77,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"de6b3df0-77e1-4990-9fbd-bde692049802","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":77,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"b09ef31e-2660-4d58-ae5f-a3cc4325bcc2","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":77,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"59977aa4-fa88-4e8d-89cb-62ba689f7243","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":77,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"bad561cd-bf42-4dce-a43b-2f282b232c0a","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":77,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"531a813d-cbee-42ce-86dc-c1fd8e0e4853","block_type":"box","text":"shares may be held by a limited number of persons. This may adversely affect the timing and pricing of the Fund’s","page_number":77,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"fcb432ae-6bd5-434b-b14e-eebb07ad14f7","block_type":"box","text":"acquisition or disposal of securities.","page_number":77,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"5a91ec24-222b-4e8f-aea5-a7c834d8af82","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":77,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"73e8ef58-6f4f-478f-bcd5-954d49131202","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":77,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"64dfdf3e-aeef-4603-878d-c4e1cf2a99fb","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":77,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"cb0d2085-33fa-48fd-ada6-316da668c8b4","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":77,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"e2170a65-62c1-4c7c-9d26-ac7086c721f2","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":77,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"e6b7291d-2651-4296-929c-7ef5e556948b","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":77,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"0bb2ff97-110f-4941-95be-47fe313955e4","block_type":"box","text":"II-37","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"736986ad-af97-4888-86e6-74782c38fcd5","block_type":"box","text":"NM1026U-5982643-77/241","page_number":77,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"00c7af23-4503-4d67-8534-b68736d93870","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":78,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"07fd0075-c15d-44b8-9004-1adf9f2349bc","block_type":"box","text":"countries may be on either a currency hedged or unhedged basis, and the Funds may hold from time to time various","page_number":78,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"a68a7bd1-3d58-4167-ac84-46ed1639ae14","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":78,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"f45e7e87-198b-4820-9984-5694f753ced7","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":78,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"adf033bf-a8e5-4b0c-85cd-371caff39340","block_type":"box","text":"to seek to protect against changes in the level of future exchange rates which would adversely affect the Fund’s","page_number":78,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"d5d90339-3f99-40d7-9fbe-9f6f61ac3cc9","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":78,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"b84d2423-9d9f-40f0-b3a8-4e1e604b7f8a","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":78,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"2b910578-fe3e-411f-9286-549ad96144f0","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":78,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"ef1822fb-87b5-4fce-9af2-791a91cb6a50","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":78,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"105b6da2-b8dd-470e-804c-5c79efdd39ef","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":78,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"5299fb28-1912-4d90-8d35-f18829357406","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":78,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"19734e4c-319b-4cb2-87c8-cc50089c7ca7","block_type":"box","text":"these markets, there is a high concentration of market capitalization and trading volume in a small number of issuers","page_number":78,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"2189e12f-0aa5-408a-ad25-99b855b62679","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":78,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"27652595-9bbb-4fb9-b027-2d5003fd8d15","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":78,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"bbda8f57-ac5f-4dc7-8400-56f9f6cba9f1","block_type":"box","text":"region such as in Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in","page_number":78,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"96563c70-6c31-4dff-bbe2-5b104d10e5fd","block_type":"box","text":"number and less well capitalized than brokers in the United States. These factors, combined with the U.S. regulatory","page_number":78,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"a166ae9f-56a7-48b5-9b90-3122af12bbc0","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":78,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"3e82206f-7130-4fb2-80c5-52b1447fd130","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":78,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"1f7ab092-ba4b-41cc-836f-3ae7536dadea","block_type":"box","text":"per formance of the Fund.","page_number":78,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"18fdfc8d-daea-402f-8b30-3a82c38ef86c","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":78,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"df7155bd-e322-4551-93bd-359ddbd7be2b","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":78,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"fc1e392d-469b-4f20-bffa-fd9a9c18bbde","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":78,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"d3599669-d323-4899-bf42-80fd31b71e99","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":78,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"866ba330-47ce-462b-95ae-4f9cda11e378","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":78,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"094f953d-4913-4e2c-a9f4-cdcab049f7f5","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":78,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"9905e2de-1440-454c-89dd-3bfa584ca3f1","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":78,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"17789029-c610-4f9a-993c-ec18bd193592","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":78,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"c8410f96-867d-4d8a-acad-9d50d320e14c","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":78,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"6df70067-8103-4499-a1ca-90f4dd64a0f6","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":78,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"42cdaa38-7b6b-40f0-bdc2-55c5b6161fa1","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":78,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"fa6fd953-8b31-4f73-843c-7d42c9fd0d56","block_type":"box","text":"affected by a variety of factors.","page_number":78,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"e9510e56-4505-49e6-a5fd-afc90175a7bb","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":78,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"fd810adb-cb0f-40f2-b8fc-ba006f2f81ff","block_type":"box","text":"Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the","page_number":78,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"38b4facb-c78e-415b-b3c2-4464b6ac19f6","block_type":"box","text":"corporation is generally limited to the amount of the shareholder’s investment, the notion of limited liability is less","page_number":78,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"02c10ee8-6e62-4ab3-b01d-110848a6992f","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":78,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"4f2a1a16-de1f-4002-8602-c9427fbc6ec4","block_type":"box","text":"Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or","page_number":78,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"04524aa5-1236-4924-92ec-2392f0ca3920","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":78,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"2da58b8a-efcf-4bab-b0c8-989ea5035742","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":78,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"cbfe303d-673d-48bf-b388-d6820cf6d533","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":78,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"8ebe8cd3-615d-463f-bfc5-57ba60169faf","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":78,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"04b4d8c6-7cae-41ca-8398-5afcfa06073e","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":78,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"f0eb795f-0e67-4e54-b79f-82e3a1c716cb","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":78,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"f7c85106-815c-42cb-b281-5d25c08bb3b0","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":78,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"138023a6-2805-48d2-8f6c-f7dc8cc803ae","block_type":"box","text":"nations.","page_number":78,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"0b0c4cb9-5808-48b1-a379-dd10638cb2fa","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":78,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"cc997a8f-b030-4c7f-b88a-415e607bf23a","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":78,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"72197785-7fcd-4e8c-b147-aa4aaf4495d6","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":78,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"49fd46e1-2c7c-41aa-8397-8ae0b008c21a","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":78,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"43dee33b-798a-4156-a04e-865683d053c2","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":78,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"a7f30627-0e90-4c10-b87f-163692dac109","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":78,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"f0094eea-1819-4af9-af8d-1089925f5c01","block_type":"box","text":"market Asia-Pacific companies.","page_number":78,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"3d086c2f-4003-4a46-bbe2-b4c594d7126f","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":78,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"794d7c7f-9495-4e97-bd3f-467abd25253c","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":78,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"2df51735-f888-4011-b783-9c6f6c3cfaed","block_type":"box","text":"services for such securities outside such countries.","page_number":78,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"873ef2a7-836f-4f39-9fd1-adf1cb822810","block_type":"box","text":"II-38","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"219bc46c-6962-4cb6-a47a-3c3aa3073f98","block_type":"box","text":"NM1026U-5982643-78/241","page_number":78,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"231a6882-c774-4b47-ab9b-af8389aa3013","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":79,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"3bee3fa4-10d3-4c62-8a44-e85e574dc330","block_type":"box","text":"to commercial banks and foreign governments.","page_number":79,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"5fa5258c-8ea1-4fc9-9b7b-90532758cec7","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":79,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"65d69a7e-2f8c-4b06-ab04-9f510946cec0","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":79,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"ac802d54-ccb0-40b0-b088-ef8668265aaf","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":79,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"5f9f0c60-4778-42ef-affd-e23b2ec3f13e","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":79,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"4c26d95d-99bb-4fd3-a5a3-7e8e1e48c2f0","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":79,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"fff5442e-3885-4ef3-bf1c-fa1497f081c9","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":79,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"72ff78cb-fc19-4e5d-948a-cf7ad88cffe9","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":79,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"f35baaa0-2009-4708-993a-2f949176b301","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":79,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"49150d0c-4489-4028-9c6a-7a8f18a3f501","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":79,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"f7155f1a-2c60-42f5-9842-c70b846a271b","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":79,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"da5ace92-32eb-4856-9abb-606e05ccc631","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":79,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"8cac5252-6c80-4401-b529-3af92ef41d3e","block_type":"box","text":"by foreign persons to only a specific class of securities of a company which may have less advantageous terms","page_number":79,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"41afd925-e1be-4f64-8b03-5fefc32e0e7b","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":79,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"79d2a6a6-1de1-4e8b-9e52-77040187d071","block_type":"box","text":"be no assurance that a Fund will be able to obtain required governmental approvals in a timely manner. In addition,","page_number":79,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"13322e8a-bb9e-4c11-8527-5a4d25586dfc","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":79,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"6488529f-b0e4-4ca5-9e78-e1959943062a","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":79,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"f84d2621-7543-4ee1-81fe-31e0e005f895","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":79,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"2b7e61a1-adb8-491f-b23d-5a8f69106864","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":79,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"37087474-0f8c-4e30-bd31-34eaa4a156d5","block_type":"box","text":"well as limitations on such investments, also may have an adverse impact on the operations of a Fund. For example,","page_number":79,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"c20c3579-ebda-44aa-8130-5d3da8f2b835","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":79,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"da6c6bcb-371e-45f5-99f6-6d01dab23e6a","block_type":"box","text":"have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able","page_number":79,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"395f447f-6258-41ba-9460-afbaa4fffa21","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":79,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"a9e8fb10-cc20-43c1-aeab-e77b66062949","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":79,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"49093533-0867-4c62-8480-276c31efdea4","block_type":"box","text":"a Fund places a purchase order but is subsequently informed, at the time of re-registration, that the permissible","page_number":79,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"76ce1198-4e8c-42f2-b4d0-74667970f622","block_type":"box","text":"allocation of the investment to foreign investors has been filled, depriving the Fund of the ability to make its desired","page_number":79,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"4794a743-2402-42eb-92c3-04a8d26c1621","block_type":"box","text":"investment at that time.","page_number":79,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"077f287a-52c6-49d3-866a-63dc4c205ec2","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":79,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"b19fecf8-7877-4fee-82e0-96d0578270f1","block_type":"box","text":"income, capital or the proceeds of sales of securities by foreign investors. A Fund could be adversely affected by","page_number":79,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"ee0f7df1-4ba4-48cb-9dfe-0ec0baa695ea","block_type":"box","text":"delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the","page_number":79,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"4f26f813-0136-4673-96c4-b2e7c979fade","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":79,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"d4392fbc-0c36-41fe-8db3-357620b129c7","block_type":"box","text":"controls or other restrictions relating to their currencies or to securities of issuers in those countries. To the extent","page_number":79,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"d085d23b-2286-4e5c-86ff-fac128a65935","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":79,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"5a0adb46-17cb-480d-b381-045b6ccc5fa0","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":79,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"60363d05-1739-4a8f-9c9a-efeaaed9dcd8","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":79,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"96d6ac3e-883d-4763-b63a-98ed3b6daf94","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":79,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"2972a1ec-1e6a-4674-ae50-d9aaa781045b","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":79,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"658708e7-960c-474d-940d-cbab25aaa07e","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":79,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"1be8a269-500a-4758-9ada-c9bb0a5378e9","block_type":"box","text":"government).","page_number":79,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"a3157529-c9e1-4f02-b43d-fea3c44c58ee","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":79,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"a2601741-912c-45bb-8908-a48bb6acad6b","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":79,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"2731473b-216a-4a9f-b319-94e49df8364e","block_type":"box","text":"securities of an issuer that, in its most recent fiscal year, derived more than 15% of its revenues from “securities","page_number":79,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"237ac886-7be0-4f45-84fd-69c51238e28e","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":79,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"75a22654-3e3c-4243-9771-afff68ef5c2e","block_type":"box","text":"foreign banks and other financial institutions.","page_number":79,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"333f75c0-0e92-4507-8976-22e3c94e49a3","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":79,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"890a3e51-281e-4add-83af-fd24dced31a8","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":79,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"34f5b742-89f4-4c0a-aeb9-49e29eb146f2","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":79,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"15705221-853c-4612-8cdf-95cb60659c35","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":79,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"46137ff6-440c-41b6-9a60-7ed39758f352","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":79,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"e76f3d8a-3dca-43c0-9df9-46f1ceffc215","block_type":"box","text":"or social developments may affect the value of investments in these countries and the availability to a Fund of","page_number":79,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"7e59304d-5d73-4b06-ac0f-55fa1b03cabb","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":79,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"ab841686-584e-47d0-9fad-a08406c359e8","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":79,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"a42410bc-f081-480f-9470-cb07bc9e76d0","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":79,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"9b86342a-7283-4dec-a67e-ac1773b67265","block_type":"box","text":"II-39","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c289bf52-f813-4ef7-83a0-956671a6f82e","block_type":"box","text":"NM1026U-5982643-79/241","page_number":79,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"5b1d1609-2c56-43a4-9a2c-591f14b560e0","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":80,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"f9d585e6-865f-4e13-9f56-442b146839b8","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":80,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"020988d7-6226-4e18-a211-51450e0a131c","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":80,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"8fded9f7-7d7c-428e-bcbc-256bde1b3415","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":80,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"c6792362-ab7b-4841-b9ff-3e727af1237b","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":80,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"e73bfe6d-4b83-4c19-b7ab-a9afd4131921","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":80,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"50c195dd-2758-4e54-917e-d05133744bff","block_type":"box","text":"foreign securities.","page_number":80,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"9584e398-066d-4792-b818-b0a5cdb9bff6","block_type":"box","text":"Risks of Investments in Russia.","page_number":80,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"21df8b40-12d3-475b-b15a-f295d5ae863e","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":80,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"2a5865f5-1f7a-4b22-9592-1a553cd7b55e","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":80,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"cd260472-9796-461b-b947-346409886ffd","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":80,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"9c1a33ec-5514-4c44-aaee-05d5a2024324","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":80,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"8efda2b5-e5b4-4227-8b7a-d5a662c3d3e5","block_type":"box","text":"The inexperience of the Russian securities market and the limited volume of trading in securities in the market may","page_number":80,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"1fead93c-6ed6-4820-a6e3-bf65540efc16","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":80,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"8410277c-5af3-46a3-8583-72f34503888b","block_type":"box","text":"developed markets.","page_number":80,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"ea1656dd-8a2c-4d0f-99b4-02a95a38a07f","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":80,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"b68fdd55-e8c2-4acc-b43c-590770ae372e","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":80,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"5e6f8a01-e07b-4277-b8d5-9344a58cea14","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":80,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"a19c71c2-1a90-441c-a642-baca25105d35","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":80,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"0b522453-5710-41e8-a098-bc4ac4a35ec2","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":80,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"9f1d2d88-8d2f-438a-8626-42a46487b1f6","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":80,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"ec13cd01-b33c-4977-9791-fe8569268b1f","block_type":"box","text":"through the NSD is now based on the records of the NSD and not on the records of the local registrars. Although the","page_number":80,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"08b1db75-4bf2-4bb2-952a-99dbc9b7c449","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities; market loss still","page_number":80,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"c09144d3-75d7-4ea9-86e1-138fb1876d33","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":80,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"b9772874-d876-4641-8a31-42cfb3b430f2","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":80,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"45b94216-fa8f-4e05-b951-05d007046071","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":80,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"204bc8ca-4dac-4c47-b135-7fbf0df926db","block_type":"box","text":"respect to the completion and submission of corporate action elections. To the extent that a Fund suffers a loss","page_number":80,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"11fa5fd9-a1d9-42bc-9645-7cd8415a49e9","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":80,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"129b7dbd-0f72-4e12-905d-223dffbd38bd","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":80,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"00aa1059-2c2a-4f37-ba5b-c443bb2620c5","block_type":"box","text":"custodian bank, and as a result the custodian may be considered the ultimate owner of securities held on behalf of","page_number":80,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"78d8214d-ddd4-4bdb-acc5-6f875c4a9fba","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":80,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"8759c870-3b75-4821-bc90-ea75b04fb3db","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":80,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"5d888ab5-fb4b-4792-930a-03d86adc92d9","block_type":"box","text":"did with Georgia in the summer of 2008 and the Ukraine in 2014 and 2022. Russia launched a large-scale invasion","page_number":80,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"52d1e44b-18b3-4397-acbb-ccc0f878c54e","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":80,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"69177181-f6db-4523-9608-8192b3860f89","block_type":"box","text":"future market disruptions, including declines in its stock markets and the value of the ruble against the U.S. dollar,","page_number":80,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"815e1c55-b186-4561-9db4-3aac1d732f51","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":80,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"c7d3c6c3-4538-413d-926f-01e7dd9ad2df","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":80,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"773e680f-1ddb-4ae5-b5e0-26d52b7cebac","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":80,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"550d6948-438e-471a-9d83-9545316ec4ca","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":80,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"7cbb88bd-b4d8-4528-965d-5694845cb020","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":80,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"59a9f341-44b0-47ce-86e4-1f48641eb53d","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":80,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"ddc7f16b-17eb-427d-8a12-ee193989e6b8","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":80,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"a10574ff-e62e-40dc-af93-dac5af97262b","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":80,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"e3926d67-e04e-41f1-ab78-091111e1e4a3","block_type":"box","text":"oil and natural gas, as well as other sectors of the Russian economy, and may likely have collateral impacts on such","page_number":80,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"6717cd76-b3d1-4867-8636-59d545d98cdf","block_type":"box","text":"sectors globally.","page_number":80,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"42912227-74f7-444d-8649-9230bd7621c5","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":80,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"44c0915e-9c2f-4dbb-8725-70333667c4d3","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":80,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"ec606586-dae4-4224-938c-20cc3a630a3c","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":80,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"17393743-1674-4ab5-8117-f07faf3c2061","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":80,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"029b8855-fba8-41c9-ba74-b8b2c5476283","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":80,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"f478e5b4-04f3-48f1-883e-74f7481f2c0f","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":80,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"57ea1d3d-f0ad-4881-9001-9ca62317df9d","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":80,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"9a460446-f6b9-4a33-9928-b61c10de90d4","block_type":"box","text":"These sanctions have resulted and may continue result in the immediate freeze of Russian securities and/or funds","page_number":80,"box":{"x":68,"y":853,"width":822,"height":12}},{"id":"fafbedfc-9e68-4d3b-8329-38b4ab3caeba","block_type":"box","text":"invested in prohibited assets, impairing the ability of a Fund to buy, sell, receive or deliver those securities and/or","page_number":80,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"d4775e2b-f5da-47a8-8211-6c0e19ef6d0c","block_type":"box","text":"assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may fur ther impair","page_number":80,"box":{"x":69,"y":884,"width":839,"height":11}},{"id":"85687696-07d9-45ae-975f-35b892b0cf78","block_type":"box","text":"the value and liquidity of Russian securities.","page_number":80,"box":{"x":68,"y":899,"width":314,"height":11}},{"id":"74c82c08-e7ab-4d03-bee0-bb0cabd81b9d","block_type":"box","text":"II-40","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1c209ba2-4a01-40b8-806a-37bbdcdfb73a","block_type":"box","text":"NM1026U-5982643-80/241","page_number":80,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"bba5e7e5-05af-4fd6-9eaa-ee088276822d","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":81,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"f4e4aed5-712a-4079-9816-466fa29018a0","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":81,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"f58f25be-9bf7-4cb1-b4a9-8819825af246","block_type":"box","text":"issuers is new and untested. Such ability could be restricted or revoked by the Saudi Arabian government at any time,","page_number":81,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"bd3da397-50d1-4584-83aa-180d126dbb30","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":81,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"6f4c8b74-f7bf-42db-adbc-dc066aa47630","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":81,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"6edc73cb-c4ca-4c77-b64b-6bc98db49fa3","block_type":"box","text":"including a limitation on a Fund’s ownership of any single issuer listed on the Saudi Arabian Stock Exchange, which","page_number":81,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"cd2a1deb-fe3d-4f42-9f5d-cd694bc0f638","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":81,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"3d751127-4ad3-4359-97b9-2ae391078453","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":81,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"5779ae1f-0bc9-48df-8258-40d3c92b9a30","block_type":"box","text":"approvals or additional foreign taxes, may be instituted at any time. A Fund may not be able to obtain or maintain any","page_number":81,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"745bb333-0995-41b3-a950-0038635b4c63","block_type":"box","text":"such licenses or approvals and may not be able to buy and sell securities at full value. Major disruptions or","page_number":81,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"8f63bf26-9721-4fab-9dc5-6b6219c0d8a5","block_type":"box","text":"regulatory changes could occur in the Saudi Arabian market, any of which could negatively impact a Fund. These risks","page_number":81,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"8fb81cf7-4c2a-40f9-9844-5d5dce3d1b7a","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":81,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"cff0b166-da80-4bb7-a747-bfd8d16813b9","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":81,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"7cab965f-e56e-4975-9fba-9d2e8fdc8aaa","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":81,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"2b68bd38-d241-4a1c-91a7-9974d3238510","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":81,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"a37f938e-09a5-46f6-bb21-dbc3116ce76c","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":81,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"ea6ac812-319d-4682-9a7f-79b50901aa29","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":81,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"d23823da-b1c4-4de5-be92-69093692cb92","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":81,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"5fa76410-e22d-4a43-8148-f14882974943","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":81,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"d308df71-2c44-45db-9e7d-ca81bd204809","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":81,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"b4a9e179-e076-46e1-a7f0-9b04708654a2","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":81,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"a2989a97-f65b-48b3-88e8-cb28ffbf730d","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":81,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"262f21ca-4467-476c-9386-fa038e63d592","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":81,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"5e3b18e4-810e-439c-8818-25e826984a70","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":81,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"6d0f0f10-a909-474f-9d33-254265979f6b","block_type":"box","text":"to an applicable treaty). Saudi Arabia is highly reliant on income from the sale of petroleum and trade with other","page_number":81,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"dabfcf7a-d00a-45a6-a475-05f8196abbaa","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":81,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"8b81bec2-aae9-4d1a-bd9b-5a97a0ae61c2","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":81,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"b40611fe-867d-47d2-a179-c8ca764f5346","block_type":"box","text":"impacted.","page_number":81,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"e58902a1-68a4-46cb-8020-9130095730de","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":81,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"1639b395-9e70-4bce-af54-67c7701cb0f4","block_type":"box","text":"many aspects of the private sector. Although liberalization in the wider economy is underway, in many areas it has","page_number":81,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"4cea9792-2ba6-467f-8108-5b1ffdee9a5e","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":81,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"c649d196-d24a-49c2-8699-6ed05cbf091e","block_type":"box","text":"key industries. The situation is exacerbated by the fact that Saudi Arabia is governed by an absolute monarchy. Saudi","page_number":81,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"7ba8b9fe-5a42-44ff-ae02-1b019c51e85b","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":81,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"0a7d2f51-db1a-4102-aadf-2101e141e9d5","block_type":"box","text":"the Middle East due to geopolitical events. Incidents involving a Middle Eastern country’s or the region’s security,","page_number":81,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"f755f50b-9192-4ddf-ad9d-3e05c127076e","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":81,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"9706c84b-d2fc-4b3d-927e-d58201eb2e0b","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":81,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"de05e070-7f76-48ad-967c-96413a167e17","block_type":"box","text":"Arabia, which could affect private sector companies and a Fund, as well as the value of securities in a Fund’s","page_number":81,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"6bcb0fd6-b18b-4e4c-82a9-28da069bdd04","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":81,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"ceb5538c-507c-4222-8c9c-0a141fee9a92","block_type":"box","text":"of sanctions, may result in the decline of the value and liquidity of Saudi Arabian securities, a weakening of the Saudi","page_number":81,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"88bd86f0-fe08-4f06-ab66-08a7fc13565d","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":81,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"60f21d59-85e2-45d8-94f8-6accd43f9aaa","block_type":"box","text":"on cheap, foreign labor, and changes in the availability of this labor supply could have an adverse effect on the","page_number":81,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"a2ef84d0-7d30-473b-85cb-ecea5490eae7","block_type":"box","text":"economy.","page_number":81,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"9df80ac6-787b-41d9-84f1-f6a8410d09fb","block_type":"box","text":"The securities markets in Saudi Arabia may not be as developed as those in other countries. As a result,","page_number":81,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"f1b73189-de79-4331-95b7-10ce2ccafa5b","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":81,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"cbf1e96a-2e8f-4a7d-a585-33da75afaf4f","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":81,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"e5470e0e-858d-46a3-9ef0-d495feb0e381","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":81,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"89d14360-89bc-4125-9b78-5d7bd1d96d30","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":81,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"c17b559a-bb8e-4423-a620-7ba6c6628487","block_type":"box","text":"infrequent trading may adversely affect the pricing of these securities and a Fund’s ability to sell these securities in","page_number":81,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"89df6656-1d8f-4e02-95d4-1fd7a1c0e462","block_type":"box","text":"the future. Current regulations in Saudi Arabian markets may require a Fund to execute trades of securities through a","page_number":81,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"b08c5b80-3e75-4c24-85ab-6a427f26024c","block_type":"box","text":"single broker. As a result, the Manager will have less flexibility to choose among brokers on behalf of a Fund than is","page_number":81,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"20b34ac4-3ddc-47ea-9d38-95a9f1e2078a","block_type":"box","text":"typically the case for investment managers.","page_number":81,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"5e6f420a-61e6-4769-b6e3-2c1eddbad7f3","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":81,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"fd8a6b9d-8550-4c44-91f7-a7f5803d312e","block_type":"box","text":"instability, and there remains the possibility that the stability will not hold in the future or that instability in the larger","page_number":81,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"7db39db8-bcc9-4772-a8fe-35393a473fd4","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":81,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"c275008e-4819-4020-86ff-148436e4c72a","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":81,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"a044c567-f3d7-4ff8-92b6-e9f6e3fa0b86","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":81,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"194f3dbc-2ec0-4dc9-bc96-c83b74f77af8","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":81,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"ba41cf86-47b6-42b3-b304-97862233fa41","block_type":"box","text":"II-41","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2629c547-a511-42b2-9d4e-6da7e3bdc3e6","block_type":"box","text":"NM1026U-5982643-81/241","page_number":81,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"a6ede85f-f581-4894-8d45-434b4d2db91b","block_type":"box","text":"with Saudi Arabia and other Middle-Eastern countries may affect these attitudes and policies. The U.S. is a","page_number":82,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"9a0d54bd-0a98-44ad-9165-4addb4b7ee14","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":82,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"391601f4-2307-41f1-9b7d-fe96053639bd","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":82,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"56d3adb3-22d5-4158-a1d5-f902812f87a9","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":82,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"c5f958a0-e6b1-4398-ae05-a9d37a9426ea","block_type":"box","text":"an economic slowdown in the U.S. may have a material adverse effect on the economic conditions of Saudi Arabia","page_number":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"6cb263a5-c2b5-42af-91fe-eb2825d0a28e","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":82,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"eac55d59-601d-4a9a-bd63-3bd9a85bb278","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":82,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"e4e57dba-45f8-4cbd-ac01-960f0f77b4f9","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":82,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"0e058287-7f75-4b56-94a7-9c6e30c7343f","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":82,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"d102dbaf-6dd2-4263-abfa-aad390d193b1","block_type":"box","text":"and/or embargoes imposed by the U.S. Government and the United Nations and/or countries identified by the U.S.","page_number":82,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"06bcf998-a7e5-40b7-9c12-b40154325617","block_type":"box","text":"Government as state sponsors of terrorism. As a result, an issuer may sustain damage to its reputation if it is","page_number":82,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"8e393f08-c8f5-43ce-aded-c594445f807c","block_type":"box","text":"identified as an issuer which operates in, or has dealings with, such countries. A Fund, as an investor in such issuers","page_number":82,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"5d035b75-461f-46fa-86fd-d6e18a7b11e2","block_type":"box","text":"will be indirectly subject to those risks.","page_number":82,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"bc950fe3-a399-4450-b7f1-104b56df3f8d","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":82,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"bf66e24a-a700-4c47-9842-3c012798d6b1","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":82,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"a09e0bcc-e007-469f-b550-18639d4e1289","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":82,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"7a3cd86c-2fae-4665-a304-f422638dfcb8","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas and its economy is heavily dependent","page_number":82,"box":{"x":70,"y":287,"width":832,"height":11}},{"id":"03e9962c-1a64-4145-8e1f-919b74692c39","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":82,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"051a43cf-4fb4-4681-805d-4716c9f50ca8","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":82,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"ed89d26b-5cf2-46b5-8a73-4ed80e3dc312","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":82,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"dca5d258-009e-4f37-9b90-f45f34fbab4a","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":82,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"360c0690-138a-46e0-82f0-585392f45006","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":82,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"7ef7f4b8-207e-4bc3-aef3-a2a9752eba8f","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":82,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"c8c37ffe-1855-4b91-b091-a8baa78c579a","block_type":"box","text":"governments of the U.S. and Venezuela. The U.S. has imposed economic sanctions, which consist of asset freezes","page_number":82,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"065b28b0-0e60-4868-96f7-dbbef71205e2","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":82,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"03e116ac-0c3d-472e-8568-2b4ae34905bb","block_type":"box","text":"government. The U.S. could also institute broader sanctions on Venezuela. The U.S. has also taken military action","page_number":82,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"49b03060-245a-4200-8241-ed86655d52a8","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":82,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"c6fea432-43fe-4aea-b3b1-097aa23ad4be","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":82,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"1f5c9e9d-c658-4c58-8e6d-979c29c1e8fe","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":82,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"c36db8a4-5c2b-4494-8e40-6e740994e3e0","block_type":"box","text":"ability of a Fund to buy, sell, receive or deliver those securities and/or assets. Additional sanctions against Venezuela","page_number":82,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"99620199-bb10-41f5-ab17-2c21a265269f","block_type":"box","text":"may in the future be imposed by the U.S. or other countries. These factors, among others, can have a negative","page_number":82,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"4b2e3d1d-48f0-4b94-8719-c1eeb160b35e","block_type":"box","text":"impact on a Fund’s investments.","page_number":82,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"4c9ff304-9cf9-427d-a096-1bd346d38bd2","block_type":"box","text":"Brady Bonds.","page_number":82,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"d4173eeb-0668-466c-ab9b-100ff572f7bb","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":82,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"7ada0a66-bbcf-4884-9544-83e66989c2c3","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":82,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"c94a4a84-4710-443b-8af5-d12324ab1477","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":82,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"99cf59e7-47fc-46b6-9fc5-4d2184792555","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":82,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"a0d5e580-4f09-4204-bd33-3d2b229a41b1","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":82,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"83d84041-cba4-4833-a874-592dab5cbe02","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":82,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"457f0d9d-7f61-4e42-8117-6f3e73d33888","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":82,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"3f64da2d-db4e-41a5-8281-a57d50406df0","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines,.","page_number":82,"box":{"x":69,"y":642,"width":787,"height":11}},{"id":"1ad1f0c9-66b9-4f4b-9b47-15475be87bc0","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":82,"box":{"x":102,"y":665,"width":798,"height":11}},{"id":"35c7d7a3-f2e4-457d-906d-7673ff3e3dc9","block_type":"box","text":"and are actively traded in the OTC secondary market. Brady Bonds are not considered to be U.S. Government","page_number":82,"box":{"x":69,"y":680,"width":780,"height":11}},{"id":"111ebf40-d672-4244-ac8f-340c4fdc27fc","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":82,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"1d08cd65-a525-4f1d-9497-056ea1dd75ac","block_type":"box","text":"discount bonds, are generally collateralized in full as to principal by U.S. Treasury zero-coupon bonds having the","page_number":82,"box":{"x":69,"y":710,"width":796,"height":11}},{"id":"daf58033-71f7-4f45-8000-1b1324487306","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":82,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"4a05d046-f3f7-4ece-89e3-18a5bbfc9628","block_type":"box","text":"year or longer rolling-forward basis by cash or securities in an amount that, in the case of fixed rate bonds, is equal","page_number":82,"box":{"x":68,"y":740,"width":823,"height":11}},{"id":"1e7e93da-791b-4187-9561-6c8061a14a9d","block_type":"box","text":"to at least one year of interest payments or, in the case of floating rate bonds, initially is equal to at least one year’s","page_number":82,"box":{"x":68,"y":755,"width":833,"height":11}},{"id":"a0038833-a003-4c8b-8deb-f45b62b52720","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":82,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"5e234404-9f05-40af-bf10-abd4c7aeda1e","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":82,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"1a9e1e79-11f0-4415-b13f-7ae9e9b6b868","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":82,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"54d71187-c025-4be4-aaf1-3d2eda05afce","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":82,"box":{"x":68,"y":816,"width":832,"height":11}},{"id":"c7511358-116f-4e96-98cf-b49d1a35aeb1","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":82,"box":{"x":70,"y":831,"width":828,"height":11}},{"id":"3f5c6671-6d02-485c-a8fd-f5d6eeb9d842","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":82,"box":{"x":69,"y":846,"width":430,"height":11}},{"id":"0231eb29-2190-4a01-aa1d-bda50435fcdb","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":82,"box":{"x":102,"y":869,"width":807,"height":11}},{"id":"8dffdae1-acfc-4402-9a53-698f431752c8","block_type":"box","text":"the history of defaults with respect to commercial bank loans by public and private entities of countries issuing Brady","page_number":82,"box":{"x":68,"y":884,"width":838,"height":11}},{"id":"8953635a-7c8e-46ab-8f9c-67e3a9ee748c","block_type":"box","text":"Bonds. In light of the residual risk of Brady Bonds and, among other factors, the history of defaults, investments in","page_number":82,"box":{"x":70,"y":899,"width":819,"height":11}},{"id":"b6587beb-e2cb-4587-8b99-d4ea6931dc0a","block_type":"box","text":"II-42","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dfc67fd2-71f7-4dcc-b0fe-fce1335436e4","block_type":"box","text":"NM1026U-5982643-82/241","page_number":82,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"75f786a9-0113-4dfa-b838-79ecc0f44ca5","block_type":"box","text":"Brady Bonds are considered speculative. There can be no assurance that Brady Bonds in which the Funds may invest","page_number":83,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"527e52a9-4c47-4985-bb9c-27128b292aec","block_type":"box","text":"will not be subject to restructuring arrangements or to requests for new credit, which may cause the Funds to suffer a","page_number":83,"box":{"x":68,"y":60,"width":841,"height":11}},{"id":"44a6eae3-98a4-4e0a-9ec2-a62209876a17","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":83,"box":{"x":70,"y":75,"width":351,"height":11}},{"id":"56cf7526-7ddf-47c5-b5d6-c0836533ee90","block_type":"box","text":"China Investments Risk.","page_number":83,"box":{"x":102,"y":98,"width":171,"height":9}},{"id":"b43c572e-fe2e-4fc6-bd00-05c07c52bc75","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":83,"box":{"x":102,"y":120,"width":763,"height":11}},{"id":"db043cb8-21ba-4e08-8308-6aa3409babd8","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":83,"box":{"x":70,"y":135,"width":830,"height":12}},{"id":"2fe9eaff-1450-453e-8828-251782adba7d","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":83,"box":{"x":69,"y":151,"width":821,"height":11}},{"id":"48d59ca1-e0be-4998-87f2-d74fe88dcce5","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":83,"box":{"x":69,"y":166,"width":809,"height":11}},{"id":"7456f257-cbe3-4d99-9e76-cb6763e8689d","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":83,"box":{"x":69,"y":181,"width":713,"height":11}},{"id":"ce153b5e-9f59-4fd8-8900-d0e3443544f2","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":83,"box":{"x":102,"y":203,"width":762,"height":12}},{"id":"52d52279-2070-4418-8829-348c7301f44b","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":83,"box":{"x":69,"y":219,"width":800,"height":11}},{"id":"97611e8d-ba33-4112-9e3f-5f43a406a7b9","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":83,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"1667d67f-b380-4b54-b4e3-f7fcfafc38ec","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":83,"box":{"x":68,"y":249,"width":777,"height":11}},{"id":"f553b3d9-da5a-43eb-90f0-782aa62e596f","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":83,"box":{"x":69,"y":264,"width":809,"height":11}},{"id":"4e28f8c1-f44d-44c1-8902-bc63f38db4f9","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":83,"box":{"x":69,"y":279,"width":805,"height":11}},{"id":"82e57944-f278-4981-87d7-d9e663639807","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":83,"box":{"x":70,"y":294,"width":770,"height":11}},{"id":"9773aece-353e-4aba-ad36-4804cca4631b","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":83,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"fe8c1958-e5cd-4bdf-b484-29ffc4d3daca","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":83,"box":{"x":69,"y":324,"width":831,"height":12}},{"id":"d3011ede-2b9a-401b-9da0-a39136cf0920","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":83,"box":{"x":68,"y":339,"width":812,"height":12}},{"id":"40f8b5bb-ef09-40f9-9fb8-28d7e0644c34","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":83,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"6dbee95b-6877-47d3-a0c3-4ac22d836105","block_type":"box","text":"hostility between China and Taiwan would likely have a significant adverse impact on the value of the Fund’s","page_number":83,"box":{"x":69,"y":370,"width":769,"height":11}},{"id":"a5a09979-4ba7-4eb4-b11b-42849750cc20","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":83,"box":{"x":70,"y":385,"width":836,"height":11}},{"id":"cb0551e5-b22f-4259-91a4-c13caac8b703","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":83,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"14e0dee5-bd79-48ae-93e8-6b2da41b5eab","block_type":"box","text":"Frictions between China and the Philippines in the South China Sea pose a risk of escalation potentially leading to","page_number":83,"box":{"x":70,"y":415,"width":813,"height":11}},{"id":"1583aa60-6c1c-476a-8448-17d2a0df3591","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":83,"box":{"x":69,"y":430,"width":811,"height":11}},{"id":"065f8e67-14a1-436e-b7e4-79476a3dc369","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":83,"box":{"x":69,"y":445,"width":804,"height":12}},{"id":"43223247-ef06-462c-8028-e36215368745","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":83,"box":{"x":69,"y":460,"width":829,"height":12}},{"id":"00211523-d938-4693-b615-304e0b89fdaa","block_type":"box","text":"companies, may impact China’s economy and Chinese issuers of securities in which a Fund invests. China could be","page_number":83,"box":{"x":69,"y":475,"width":825,"height":12}},{"id":"25225682-6788-4bc8-93a9-c0232ab59b4e","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":83,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"b032682c-3820-4112-b88f-b49caeb6eff2","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":83,"box":{"x":69,"y":506,"width":776,"height":11}},{"id":"25995c78-4068-4449-9152-56794eaed25d","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":83,"box":{"x":101,"y":528,"width":792,"height":12}},{"id":"4994bc23-ba51-46f2-9e4e-20488b6c5c59","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":83,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"86703813-ddf4-47a2-946f-d4eef9b83ebe","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":83,"box":{"x":68,"y":559,"width":835,"height":11}},{"id":"fa46af81-f56a-4c07-bfff-26bb8a1296ef","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":83,"box":{"x":69,"y":574,"width":802,"height":11}},{"id":"1b61f287-016e-433c-8811-e08d63cca474","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":83,"box":{"x":70,"y":589,"width":763,"height":11}},{"id":"b417deac-8910-4930-a260-cbe4cf183567","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policy making and","page_number":83,"box":{"x":69,"y":604,"width":834,"height":11}},{"id":"4ada32c8-52bb-4fcb-aff4-0b386b3466c5","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":83,"box":{"x":70,"y":619,"width":813,"height":11}},{"id":"8350374e-0230-4aee-a3e7-e098de87dadd","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":83,"box":{"x":68,"y":634,"width":653,"height":12}},{"id":"2159761a-68ac-4b2e-89e9-4b69ce599caf","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":83,"box":{"x":101,"y":657,"width":783,"height":11}},{"id":"bffe7bd9-73af-4d8b-ada5-3bf76b85c9a8","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":83,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"96b3f938-a83f-4096-9841-7ac9760d8fdf","block_type":"box","text":"market price and liquidity of these stocks, and may have an unpredictable impact on the investment activities of the","page_number":83,"box":{"x":69,"y":687,"width":827,"height":11}},{"id":"5477dc8b-1875-42dc-b708-b5f8ffcbb63c","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":83,"box":{"x":70,"y":703,"width":821,"height":11}},{"id":"5ac6df90-cd5b-497b-859f-8fb509b193d8","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":83,"box":{"x":69,"y":717,"width":683,"height":11}},{"id":"78451dae-ea1e-4cf2-bf61-5152f3e2c785","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":83,"box":{"x":102,"y":740,"width":797,"height":11}},{"id":"e2c442a9-7d2e-46ef-a81e-c5cc6bf1e7d1","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":83,"box":{"x":69,"y":755,"width":779,"height":11}},{"id":"2ae1a457-1887-40be-b7e0-7c683b8611f3","block_type":"box","text":"Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulation as are U.S.","page_number":83,"box":{"x":69,"y":770,"width":822,"height":12}},{"id":"0e94874a-b1fc-4f02-b80e-7dfb52f43917","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":83,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"49655d01-e379-4e5e-a25d-4c97231b86a7","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":83,"box":{"x":69,"y":801,"width":778,"height":11}},{"id":"fc0ed8d0-a24d-4a8a-a232-17dc220b5959","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":83,"box":{"x":70,"y":816,"width":803,"height":11}},{"id":"cfcfd38a-b9b1-46eb-8a0a-208e23d1b6b3","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":83,"box":{"x":68,"y":831,"width":816,"height":11}},{"id":"8e79577e-913d-47d4-af54-6af13140ddc4","block_type":"box","text":"the relevant regulation. Custodians may not be able to offer the level of service and safe-keeping in relation to the","page_number":83,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"4772b89c-e59c-4898-a8a1-87e87f39bf67","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":83,"box":{"x":69,"y":861,"width":798,"height":11}},{"id":"e6625278-2d3c-4d53-a27a-5338befca275","block_type":"box","text":"there is a risk that a Fund may not be recognized as the owner of securities that are held on behalf of the Fund by a","page_number":83,"box":{"x":68,"y":876,"width":826,"height":11}},{"id":"efc311f2-6a36-4b26-a7a1-961730a4b108","block_type":"box","text":"sub-custodian.","page_number":83,"box":{"x":69,"y":891,"width":102,"height":9}},{"id":"39987b36-aa80-470a-8f61-9c7b38a36e84","block_type":"box","text":"II-43","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c74a72db-9917-4f8e-a9dc-903b4b5d6a68","block_type":"box","text":"NM1026U-5982643-83/241","page_number":83,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"6ff670d9-ff31-48e7-aec9-c9ad0fdf21a5","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":84,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"e7c5afb0-b345-4972-a136-0e49e9fe27c6","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":84,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"a0fd98bd-b50b-4e11-b27f-a838edc44c44","block_type":"box","text":"on investor protection considerations.","page_number":84,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"3489a855-130c-4f59-bab0-103b03cd09fa","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":84,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"9e9ff978-9c4a-4b40-a5a9-ef9aa5cb0c23","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":84,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"e56e48da-a994-419b-8bf3-a2e7d4d3b5c8","block_type":"box","text":"for compliance with U.S. law and professional standards. On August 26, 2022, the PCAOB signed a Statement of","page_number":84,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"98652a38-48e4-4bdc-8bf7-7117eecfe4ab","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":84,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"d9c41a1c-14fa-48b1-8bd3-2e806dd3759f","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":84,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"fd8ce5bb-652e-4e85-a78f-8e85ba6f1e09","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":84,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"e93ec1ff-d188-4285-a647-023be5c7748d","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":84,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"8e2f2bc5-f37d-478a-b41a-30f72e34ecf5","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":84,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"cfb5ee8e-374a-4dee-a132-ca007b9591cb","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":84,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"24ebea71-2856-4216-97da-6890d85f7bc1","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":84,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"b0debb86-dc56-497b-8e7e-ff634b9de7ab","block_type":"box","text":"2020, which requires that the PCAOB be permitted to inspect the accounting firm of a U.S.-listed Chinese issuer,","page_number":84,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"b4a845ec-4d72-416a-953f-8f569ee5dfbf","block_type":"box","text":"Chinese companies with securities listed on U.S. exchanges may be delisted if the PCAOB is unable to inspect the","page_number":84,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"c1915bf7-dab7-4397-a536-9ccd2e172406","block_type":"box","text":"accounting firm.","page_number":84,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"47436fcf-fc7d-40ee-b6ad-2ab56bffd6f6","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":84,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"d35b362b-f0de-4ebe-8fe0-958a5ac9f7bc","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":84,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"341943fb-32a6-44eb-ad1f-c5826704c9ea","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":84,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"c08f1dee-e425-4050-842c-b526c58ad76d","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":84,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"94d60959-5e72-4906-88f5-4cf3cef5c513","block_type":"box","text":"capital, as well as by the application to the Funds of any restrictions on investments. Investing in entities either in, or","page_number":84,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"0d878273-1a10-4ef7-b096-6f986de7dff9","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":84,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"f5944360-c59c-4ef8-b2c7-8f65870590b2","block_type":"box","text":"seek local government approvals or take other actions, each of which may involve additional costs and delays to the","page_number":84,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"37449d06-6c09-4c66-87a8-d66da8746d1a","block_type":"box","text":"Funds. The Fund may also incur costs in connection with conversions between U.S. dollars and RMB, as well as in","page_number":84,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"136fd5b3-6cd0-4f60-b8cd-03fe37381fdb","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":84,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"79e13e7d-da57-4a15-aab7-b35343647075","block_type":"box","text":"RMB (“CNH”).","page_number":84,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"93dc1a6a-af82-4d3d-ba9a-f9ed38c9c6a4","block_type":"box","text":"Many Chinese companies listed on U.S. exchanges use variable interest entities or “VIEs” in their structure as a","page_number":84,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"556f0fca-91dd-4c56-8e08-aae8f500ba58","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":84,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"4fc1a05d-8d39-4feb-9bc7-bdbb2ed46af3","block_type":"box","text":"in another jurisdiction to issue stock to public shareholders. When a VIE structure is used by a Chinese company to","page_number":84,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"8774171a-e4fa-4609-beef-76b45c7a8035","block_type":"box","text":"list its stock in the U.S., instead of owning the equity securities of the Chinese company, the U.S.-listed shell","page_number":84,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"81f4896d-b36f-48d2-806c-dc98565656db","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":84,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"3747a8c8-96b8-4f90-8a56-b234530ac5db","block_type":"box","text":"contracts provide the U.S.-listed shell company with only economic exposure to the Chinese company and do not","page_number":84,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"335da013-baa9-41d3-9400-1e6ca5a0865b","block_type":"box","text":"represent equity ownership in the operating company.","page_number":84,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"a519137d-dbae-4f8f-81ac-4b9ee4866aa6","block_type":"box","text":"While VIEs are a longstanding practice that is well known to Chinese officials and regulators, they have not been","page_number":84,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"54246ebe-735d-4f0e-87f5-86a6a4d69593","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":84,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"4d4bed58-6869-4ff7-a86c-051a3eb00ad7","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":84,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"f992b9ab-fbf3-41b0-bb7f-d183f7d8d97e","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":84,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"e61f7edd-5562-4936-ab50-81f76a5c895f","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":84,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"2fd5f1d1-e7e7-4c19-9eec-4f0dc1764e4c","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":84,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"58db55e5-d1fd-4d89-9476-2c2551355b36","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":84,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"ee8e6bb6-a9ea-4ec4-96b1-0a10827422bb","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":84,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"b8a111ea-356c-4107-b603-108da220b12f","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":84,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"af8180d8-ab72-44cc-9238-ad3be02f24fc","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":84,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"4f56f29a-5ffa-4d63-a301-69ec93625686","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":84,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"d1fa4e66-d520-42ae-bc44-055a33389c54","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":84,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"373b9a3e-333d-4ea2-ae32-342deb532c8a","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":84,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"333e2fa5-fc88-43de-a0ac-e1b6a6e03e1e","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":84,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"d0c6e2b0-4e0e-4530-8fae-31a8a6e7f333","block_type":"box","text":"losses on its investments through a VIE structure with little or no recourse available. Any change in the operations of","page_number":84,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"1c3d4a83-3f07-4c45-8523-c05572be1f7e","block_type":"box","text":"entities in a VIE structure, the status of VIE contractual arrangements or the legal or regulatory environment in China,","page_number":84,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"493af930-bfa5-4b8a-b97a-37dd83e21c86","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":84,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"2d85ac74-0ecf-41a3-b0d3-9fc0f45b6e39","block_type":"box","text":"losses to a Fund.","page_number":84,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"2f2cf6ee-0343-4f16-a6af-ceba705df76e","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":84,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"d5300364-07ac-404b-9926-bfc30dbea8c0","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":84,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"ff561b44-3021-4055-b3ff-6ace1de51adc","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":84,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"63a76034-be73-4601-9720-0a72d8f37bef","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":84,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"f7d98d4b-fad9-4ef0-aeb6-dcb4a81d16ff","block_type":"box","text":"II-44","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6e5d2f08-eae6-4617-bbe0-84c3d8f91367","block_type":"box","text":"NM1026U-5982643-84/241","page_number":84,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"7b0afa71-141a-4865-a455-fd77feb0f8f1","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":85,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"85461849-dfc0-40d2-b4de-5bfe97738f65","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":85,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"dabcc677-9dc3-41a8-9e2d-05af6ef56c48","block_type":"box","text":"and the United States or in response to actual or alleged Chinese cyber activity) or a downturn in any of the","page_number":85,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"2079a777-16dd-40a4-8349-65f4c39bdbd7","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":85,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"5f0a5373-a129-44bc-a39c-6e318cac11c2","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":85,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"5f1baa54-14fe-47f2-9d0c-6aed061a905c","block_type":"box","text":"subject to economic or trade restrictions imposed by the U.S. or other governments due to national security, human","page_number":85,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"2a0da8c6-2dd1-44d0-ae9b-34047bcea4f2","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":85,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"3eada384-510a-4313-a93d-fc0187b59c65","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":85,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"24971aca-fb27-4935-a6e3-0f85c7c025f9","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":85,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"c1cacaf9-9ee1-488c-9916-f37b92036545","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":85,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"9bf50ab9-ebef-4abb-a3de-8992fbc0e12f","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":85,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"f2aa539a-b8e6-4c50-8185-6c17235323f8","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":85,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"da63b399-f39e-4295-9fbd-8d38783343e8","block_type":"box","text":"restrictions) imposed by the U.S. or other governments due to national security, human rights or other concerns of","page_number":85,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"053c9ce5-c4ad-47fd-8f3f-79bd6c5404ec","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":85,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"50fd5113-2149-4684-8e9e-06d42810799d","block_type":"box","text":"such companies.","page_number":85,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"73bd744d-4883-4db7-adca-c9dc38c48303","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":85,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"63a1610f-29fb-42ff-9dd9-4e79e670d1ab","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":85,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"6219dcf6-6f97-4796-8bc8-baa701ae9928","block_type":"box","text":"tax authorities are not as consistent and transparent as those of more developed nations, and may vary over time","page_number":85,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"78f4980e-39b0-404b-875f-9d7e555f04e8","block_type":"box","text":"and from region to region. The application and enforcement of PRC tax rules could have a significant adverse effect","page_number":85,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"46174cd0-5980-4690-98ff-d36663323b33","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":85,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"17cee293-6982-4c4c-9424-d47d49bf0589","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":85,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"ad39390f-fa87-459b-bd31-0dc06e4db4b1","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":85,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"f9985850-98e5-4b13-a483-e2ef5748004a","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":85,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"544394f4-3258-4df5-b78a-8d09b56692cd","block_type":"box","text":"standards.","page_number":85,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"883ddc4c-f55a-4a2e-929a-25f698e2a2ce","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":85,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"586c3539-81ad-4ccc-b75c-a6157c539d40","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":85,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"4a54e3fd-9e34-4b36-a7f1-51c1ba73cfc0","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":85,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"2d4f6d15-7002-4686-ad58-69285a17b87b","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":85,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"13b60e51-b20a-474f-afc2-5b723d98c2a9","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":85,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"e86f8658-fbd3-4669-86df-caa550cbc850","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":85,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"1d5d3261-0acd-4617-b370-61cf7969def1","block_type":"box","text":"General.","page_number":85,"box":{"x":102,"y":529,"width":58,"height":8}},{"id":"88c137b4-cf57-4af7-8bac-10c2454b0e78","block_type":"box","text":"China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":85,"box":{"x":166,"y":528,"width":696,"height":12}},{"id":"0d622d71-e82e-4d1c-86e5-059b26b04d08","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":85,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"741578cb-622a-4637-8de4-768af5a735ed","block_type":"box","text":"Stock Exchange (“BSE”) (“A-shares”). Foreign investment in A-shares on the SSE and SZSE is not permitted, other","page_number":85,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"846af5ea-ec40-400a-96e7-dd1fb9fd1d07","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":85,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"70067a5d-e33d-4f20-89b8-80a4c37dedb6","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":85,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"54dedbe4-f2c0-4744-9113-66322a9f4395","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":85,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"fa19a82f-8519-4f2c-a7dc-579b608e7082","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":85,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"00b04780-538a-4d0f-bc6c-43aa6c34f200","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":85,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"3d2877eb-be05-4983-ac35-1f9ada04039f","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":85,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"7e61110e-b667-4c02-a7e3-8c471ed58837","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":85,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"103cf1e7-84f2-41c7-a859-e355b5edc989","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":85,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"e54b4445-8abf-4841-a2f6-b4be144c02c0","block_type":"box","text":"market access between the PRC and Hong Kong by permitting investors to trade and settle shares on each market","page_number":85,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"30cf31d5-88f0-40b4-9bc5-57ae57e6fa4f","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":85,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"bb9a1424-f5f4-40e9-a054-1197f93a98d9","block_type":"box","text":"the SSE or SZSE, as applicable, would be effectuated through its Hong Kong broker and a securities trading service","page_number":85,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"8defb32e-a22d-491c-8630-16b72d209683","block_type":"box","text":"company established by SEHK.","page_number":85,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"abc4709a-20ec-453f-9078-d6cbaf813fcf","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":85,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"a6182564-cc5b-4306-a1b0-7672e51a3e86","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":85,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"b41a3f1b-1141-4427-a7b8-c7c9063f71bb","block_type":"box","text":"buy orders for Stock Connect Securities be rejected once the daily quota is exceeded (although a Fund will be","page_number":85,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"9cea5945-84cf-48ff-bdb2-063b5ffe6687","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":85,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"ded99a53-07cd-4177-8464-d4ba20405e59","block_type":"box","text":"investing in Stock Connect Securities on a timely basis, which could affect the Fund’s ability to effectively pursue its","page_number":85,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"c6d1edbe-f64a-4480-b62f-9eb0acc2405c","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":85,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"aadb791e-bed5-4df1-b143-4772004cafbd","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":85,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"52417968-19eb-4929-99de-818c9c0e3952","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":85,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"95270d72-afdc-427a-877e-f328c1a29788","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":85,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"7488da0b-5bd0-4156-963d-f677066e1028","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":85,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"3eae6f42-f00a-4d9d-9557-1685a88901da","block_type":"box","text":"II-45","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"080795bf-483a-40b7-b942-e006cded8efb","block_type":"box","text":"NM1026U-5982643-85/241","page_number":85,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"3cacd3d1-7361-4727-b6c8-ab73f078a22d","block_type":"box","text":"Securities in the investor’s account before the market opens on that day. If there are insufficient Stock Connect","page_number":86,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"f8bc940f-8798-4849-ba58-b82a3bccc629","block_type":"box","text":"Securities in the investor’s account, the sell order will be rejected by the SSE or SZSE, as applicable. SEHK carries","page_number":86,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"d1244533-bd12-4d7d-9594-7300b28327d8","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":86,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"f4b07d92-0005-409f-9a45-2cdd00fd07c5","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (i.e., stock brokers) to ensure that this requirement is satisfied. While shares","page_number":86,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"b5e89de3-7aea-4ea9-af66-baa077527d28","block_type":"box","text":"must be designated as eligible to be traded under a Stock Connect, those shares may also lose such designation,","page_number":86,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"e3af5986-2c5c-442c-bba1-e52bf77908a2","block_type":"box","text":"and if this occurs, such shares may be sold but cannot be purchased through a Stock Connect. In addition, Stock","page_number":86,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"f32d3494-0d95-4260-99f9-06c0897f8773","block_type":"box","text":"Connects will only operate on days when both the Chinese and Hong Kong markets are open for trading, and banking","page_number":86,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"92943cee-41fd-48c6-81df-fcc54086e45c","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":86,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"7ed88754-74c9-4666-8dfe-d90895731ae7","block_type":"box","text":"Connect Securities through a Stock Connect may subject a Fund to a risk of price fluctuations on days when the","page_number":86,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"ebcaa414-12bc-4a30-b26e-9f07a9aded05","block_type":"box","text":"Chinese market is open, but a Stock Connect is not trading. Moreover, day (turnaround) trading is not permitted on","page_number":86,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"15b7a729-850a-4727-9fab-23e325d1de9e","block_type":"box","text":"the Stock Connect Securities market. If an investor buys Stock Connect Securities on day “T,” the investor will only","page_number":86,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"f15f7bb9-b9a0-4c2e-adea-ae6e07108ef9","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":86,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"d5db6de9-95bb-46cb-8273-cea51795c0fa","block_type":"box","text":"must be settled in RMB, investors must have timely access to a reliable supply of offshore RMB, which cannot be","page_number":86,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"9065e97d-5138-4cdc-b70c-9d3662b049a1","block_type":"box","text":"guaranteed. There is also no assurance that RMB will not be subject to devaluation. Any devaluation of RMB could","page_number":86,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"9aa2de13-15f5-42e5-b0b0-edef92e5481e","block_type":"box","text":"adversely affect a Fund’s investments. If a Fund holds a class of shares denominated in a local currency other than","page_number":86,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"b36fc7a1-a63d-41d1-ae3a-a9901e6fef06","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":86,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"3f8da199-61e7-4b97-bfea-f2fb90078e2f","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":86,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"904ad85e-0c4f-4265-9ebe-1691d326b3b8","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":86,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"3b43e19d-8e85-4f3a-b061-e4e95c976d05","block_type":"box","text":"as nominee on behalf of investors. The precise nature and rights of a Fund as the beneficial owner of the SSE","page_number":86,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"383d4d8e-03aa-42a7-af62-94e767138371","block_type":"box","text":"Securities or SZSE Securities through HKSCC as nominee is not well defined under the PRC laws. There is a lack of a","page_number":86,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"f620d59a-e80c-45c6-ba16-1ae3d6e633c1","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":86,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"e52d4fe2-ea7e-4303-82d0-1e2bac5d5dcf","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":86,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"5a856e48-1065-46fe-ae9a-1f5a113c4519","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":86,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"63992900-4d15-482c-b644-6d0de3aa5c0c","block_type":"box","text":"HKSCC becomes subject to winding up proceedings in Hong Kong, there is a risk that the SSE Securities or SZSE","page_number":86,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"aa65064c-1833-4108-8f4d-603ef5ad4b8e","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":86,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"1513caed-8c18-4daf-8551-87f025286fe2","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":86,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"d762a7b2-f106-49ed-ae6c-419ecdd042a0","block_type":"box","text":"proprietary interests in the SSE Securities or SZSE Securities held in its omnibus stock account in the CSDCC, the","page_number":86,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"61655677-b64a-4c50-94af-ad40377c15c7","block_type":"box","text":"CSDCC as the share registrar for SSE- or SZSE-listed companies will still treat HKSCC as one of the shareholders","page_number":86,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"2be6e689-0285-4844-b995-e618b83dcceb","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":86,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"738833ea-0f6e-4487-bab8-d6539bfac153","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":86,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"156d1979-1ca2-42d2-99d9-77ac0bd40e6c","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":86,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"5325ffb0-94bf-4e13-b1f5-341d52cbe8ee","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":86,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"32a71a23-d4f6-4025-a4ad-00c0a0e5f97c","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":86,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"fedd3ad9-901b-4b01-961d-7669fdb61915","block_type":"box","text":"HKSCC, who will then submit a combined single voting instruction to the relevant SSE- or SZSE-listed company. As a","page_number":86,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"d5549d52-4d85-4773-b7e3-2d2543ecbd58","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":86,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"fb82d5db-df43-4ff9-af45-c1677d1de910","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":86,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"7da442a6-f4e0-43a2-ac13-c821a2bdc67d","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":86,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"41f68114-3c1c-44de-b14a-0e933e08c603","block_type":"box","text":"to exchange-traded products in Hong Kong. For defaults occurring on or after January 1, 2020, Hong Kong’s","page_number":86,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"a401d0d6-8f4a-4989-a045-aac8891b044d","block_type":"box","text":"Investor Compensation Fund covers investors’ losses in relation to securities (i) that are traded on the SSE or the","page_number":86,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"dd7583ea-3731-49a1-9185-f431fbff25fe","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":86,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"ee64a36a-a5cd-46d0-91f9-1fa221da3fd9","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":86,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"e8572c9f-e23d-49b3-8350-675309583c16","block_type":"box","text":"brokers in Hong Kong but not PRC brokers, it is not protected by the China Securities Investor Protection Fund in the","page_number":86,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"cc22f869-a06e-4599-b2b1-3ce232120d5c","block_type":"box","text":"PRC.","page_number":86,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"a8ff8d7b-4196-4714-8352-973cb3efc26a","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":86,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"db55d01e-e69b-4eb7-a1c0-4bc88985531b","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":86,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"27e15a2f-da7a-4804-967f-04ac3b37d2e7","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":86,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"ca7653ff-2411-4135-ae1d-c0fe4c897c2a","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":86,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"7b0f50dc-819f-4810-8d75-9412728d0d72","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":86,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"5dd8b6cc-161b-4289-b630-5405afb4b907","block_type":"box","text":"continue to be adapted to changes and developments in both markets. In the event that the relevant systems fail to","page_number":86,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"aeef0679-2e87-4c1e-a16f-bf9efd915e0a","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":86,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"0f125b32-723c-4438-90d0-9dc6ad5cf040","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":86,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"82072961-2cc9-4209-9df0-b39d3c328884","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":86,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"4e654956-bb49-437c-a83f-0983e37088e1","block_type":"box","text":"New or revised regulations may be issued from time to time by the regulators and stock exchanges in China and","page_number":86,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"fed39abe-fcf7-419c-92ca-0369113df40b","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":86,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"cb527535-68ac-4bc4-ae00-1ceb2431d8c1","block_type":"box","text":"addition, there can be no assurance that Stock Connect will not be discontinued. A Fund may be adversely affected","page_number":86,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"a80a3edf-8530-4cb4-8ab2-6a59bf66f9a5","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":86,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"3a6eefc6-22a0-4c78-a02d-92e13cff43ae","block_type":"box","text":"II-46","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f8f9c41b-d804-480b-bf21-1b9216ef9803","block_type":"box","text":"NM1026U-5982643-86/241","page_number":86,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"95026bc5-4909-4e31-a6b3-171469a3121f","block_type":"box","text":"significantly and issues may arise from the differences on an on-going basis. In the event that the relevant systems","page_number":87,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"aba22232-4e29-4a45-a6ca-f9b83295165d","block_type":"box","text":"fail to function properly, trading in both markets through Stock Connects could be disrupted and a Fund’s ability to","page_number":87,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"dec4350a-5820-495f-afea-dfac87bdb717","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":87,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"0eb1db0f-f900-4309-aaa1-d54b3801c2eb","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":87,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"a3f93c4a-fd23-4c60-a648-b2cebcb4b850","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":87,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"a4e05d79-9563-4ffc-b598-e6199635b163","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":87,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"dbe42210-bb10-42db-8fae-36c1007300a1","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":87,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"40d9b3bd-5cc3-4e8e-ad96-f1843860790f","block_type":"box","text":"Suspension Risk.","page_number":87,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"b18aecf5-d62b-4235-b11b-20f6ec591ca4","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":87,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"15780743-22f7-4f36-a2b8-9f00f04f2dec","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":87,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"ca18493c-cf39-42b7-bcb1-948be55367cc","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":87,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"4406fc4b-c4ff-43ad-bce0-b605f4880a07","block_type":"box","text":"global equity markets. Each of the SEHK, SSE and SZSE reserves the right to suspend trading of SSE Securities and","page_number":87,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"e5d3df98-2de9-4556-a02f-30dd10090609","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":87,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"9fc3eb47-13e9-44df-a280-21b0190f5f12","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":87,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"a2d4aa8d-77f1-46c6-90f6-058b3a16a36a","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":87,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"9744320a-27b4-4c1b-ad58-c38f7f309985","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":87,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"ab78d4ac-4b1e-4741-b19b-41556ab90e09","block_type":"box","text":"Connect is effected, the Fund’s ability to access the PRC market will be adversely affected. Trading suspensions in","page_number":87,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"51e9328c-3e2c-4d91-a404-f7719a9a156c","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":87,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"59983715-314c-477c-9b39-e2d6572f29fa","block_type":"box","text":"daily price limit, generally set at 10%, of the amount of fluctuation permitted in the prices of the relevant SSE","page_number":87,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"c993113b-cf6f-4b0c-b223-df429365c867","block_type":"box","text":"Securities and SZSE Securities during a single trading day. The daily price limit refers to price movements only and","page_number":87,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"fae8701e-36ff-494b-b5d6-39b21d4acf4a","block_type":"box","text":"does not restrict trading within the relevant limit. There can be no assurance that a liquid market on an exchange will","page_number":87,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"7baf4148-30a9-4faf-bd49-977eb0cb3a12","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":87,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"c236f5ad-5871-48f2-9051-0c5feaa75e58","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":87,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"8d9946e5-40f8-454b-add9-f1a3d88675fb","block_type":"box","text":"A Fund may invest directly in the","page_number":87,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"9242046a-736f-43ae-bb5a-96a182032aed","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":87,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"8ed2a1c6-5fef-4759-b934-9eff28d88e76","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":87,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"941355af-b1ba-4236-b99f-497bee741645","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":87,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"00395e58-915a-4a84-b868-2d9736da3734","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":87,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"dcf52877-309d-4fde-acb5-4df2116f4990","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":87,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"a5261f61-bcb7-4420-8d80-93ea56a13cce","block_type":"box","text":"regulations in the PRC, eligible foreign investors are allowed to invest in the bonds circulated in the China Interbank","page_number":87,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"db9945b8-19c3-4daf-aceb-3230782679ba","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":87,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"6acc5d8a-a45a-4822-8e72-f5dc6451fe24","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":87,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"4a107255-78d0-4344-9398-a17cc3bcf0e9","block_type":"box","text":"turn transmit their requests for quotation to CFETS. CFETS will send the requests for quotation to a number of","page_number":87,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"9a163792-df94-4262-97e8-3ceec9a66198","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":87,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"48dc16a3-54d0-4419-8bf8-4a6d9bb57050","block_type":"box","text":"The approved onshore dealer(s) will respond to the requests for quotation via CFETS and CFETS will send their","page_number":87,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"e655f338-b8c9-4f3e-b392-50540de3eaec","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":87,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"cf525b90-b864-44ff-9477-5bf30265920b","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":87,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"e90612eb-fb77-43ff-928c-4272fb999821","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":87,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"ce7d2e82-977c-4d22-aae3-49bab21ffe3b","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":87,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"100b4aee-90f4-417e-86dd-01839365cf2f","block_type":"box","text":"as onshore custodians and clearing institutions in the PRC. Under the settlement link, CDCC or SCH will effect gross","page_number":87,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"44fb1ee1-225e-4b07-88a5-2ceb37194997","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":87,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"aa115433-f60e-4634-aa17-8ce4b3fe3447","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":87,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"d7cc6093-828f-4216-938e-0550a21c9f56","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":87,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"e0c0d5c7-0a41-4a1d-9f60-e6f1048b8de8","block_type":"box","text":"carried out simultaneously on a real-time basis. Pursuant to the prevailing regulations in the PRC, CMU, as the","page_number":87,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"57dc3294-e06d-4109-8dcc-96d1e3f87f3e","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":87,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"b09292f8-0939-45fd-9d0c-32ca05e381e4","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":87,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"f0f2b8cc-934c-49e4-9fb7-23a3a5564dc5","block_type":"box","text":"i.e.","page_number":87,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"8daaaf35-48b6-4b3a-94cb-0ad868290d96","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":87,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"9d45483e-de2e-4414-a5fe-691f071d89ec","block_type":"box","text":"eligible foreign investors through Bond Connect will be registered in the name of CMU, which will hold such bonds as","page_number":87,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"27d05dfc-44ed-4007-a0cc-f029757b3abc","block_type":"box","text":"a nominee owner. Therefore, a Fund will be exposed to custody risks with respect to CMU. In the remote event of a","page_number":87,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"72f23b14-c470-4415-87c4-0691af5a9dea","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":87,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"63a88ebb-36d7-4706-8dad-af08945542c1","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":87,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"2350278f-09cf-432b-aab2-d9327e8adae0","block_type":"box","text":"delay in the recovery process or may not fully recover its losses from CDCC or SCH. In addition, as the relevant","page_number":87,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"07b369dd-431a-4874-a85d-77b9af2aab12","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":87,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"9d0c31f4-9808-4bcf-aeed-30c599d90835","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":87,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"afe242b2-49b3-4bb2-a3a2-53a9e45b07c3","block_type":"box","text":"par ties.","page_number":87,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"3050b6c6-e6bb-4363-b2d5-5075c421b4e7","block_type":"box","text":"The precise nature and rights of a Fund as the beneficial owner of the bonds traded in the China Interbank Bond","page_number":87,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"bb063c17-88b6-476c-b707-5f7bd1f40561","block_type":"box","text":"Market through CMU as nominee is not well-defined under PRC law. There is a lack of a clear definition of, and","page_number":87,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"911eb9b8-d147-451e-97ff-7744a6244b98","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":87,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"4fd8454b-a74e-4c3e-b562-c6d2279d68bf","block_type":"box","text":"II-47","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"28eeac92-ba4c-4504-a141-9c1883199c99","block_type":"box","text":"NM1026U-5982643-87/241","page_number":87,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"4f3a9149-cc55-4ef7-99c7-3fc1e900e9a8","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":88,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"7c0a60ca-c474-41ca-90b9-18488c8f98c8","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":88,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"3f7bb0af-effc-4cfa-aed3-c631ca37dc6c","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":88,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"e56e3a22-36a0-450f-97b0-81317223b0cd","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":88,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"37bc0f81-a4fd-4903-b7bd-9d2962c68b44","block_type":"box","text":"such market is therefore subject to liquidity and volatility risks. The bid-ask spreads of the prices of such securities","page_number":88,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"b970ba35-ff74-4f11-8c0e-8387ab2ac2b8","block_type":"box","text":"may be large, and a Fund may therefore incur significant costs and may suffer losses when selling such investments.","page_number":88,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"a530d432-710e-464c-9069-5cc74c4176c8","block_type":"box","text":"The bonds traded in the China Interbank Bond Market may be difficult or impossible to sell, which may impact a","page_number":88,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"f3cbe1b3-7dda-4709-b5c8-a4fb2267303a","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":88,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"7379f430-4b3b-4979-af3a-40994cea1663","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":88,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"4de04a1f-838b-47fe-b71a-7e85ddd8450e","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":88,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"bf64c448-30d4-4e14-828e-46692048bf85","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":88,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"2e676ee7-57cf-480d-a41b-d98161346577","block_type":"box","text":"systems of China and Hong Kong differ significantly and issues may arise based on these differences. In the event","page_number":88,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"950fad5f-1b4f-4aa4-a5b3-2d05cb28ef2a","block_type":"box","text":"that the relevant authorities suspend account opening or trading on the China Interbank Bond Market, a Fund’s ability","page_number":88,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"3cc2c768-ee9c-4da9-ad42-01860cee77f2","block_type":"box","text":"to invest in the China Interbank Bond Market will be adversely affected and limited. In such event, the Fund’s ability","page_number":88,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"9b790882-fed1-4cb9-a631-aa2d27f53d9f","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":88,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"fe21c7de-0169-43c7-9d0f-d6d21182712e","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":88,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"442e44a2-07e7-4530-a8cc-c5df352b3ba2","block_type":"box","text":"acquire or dispose of bonds through Bond Connect in a timely manner, which could adversely affect the Fund’s","page_number":88,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"00b5bd7b-6b0e-4026-b510-c96d05e65135","block_type":"box","text":"per formance.","page_number":88,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"363f0930-33d8-4b68-a4c5-670320a93a1a","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":88,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"1f53530c-9e8f-43f3-b077-e30a4631ce9a","block_type":"box","text":"There is no assurance that such systems will function properly or will continue to be adapted to changes and","page_number":88,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"595de4cc-418d-4671-972c-d196ddca149a","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":88,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"9ef7cde9-536a-48ff-a9f4-ba6c22afc42d","block_type":"box","text":"Connect may be disrupted. A Fund’s ability to trade through Bond Connect (and hence to pursue its investment","page_number":88,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"57919177-6aea-4dbd-ba3c-9cc82eed073e","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":88,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"cd604d55-dc84-4245-8e28-d0cc193da6ad","block_type":"box","text":"through Bond Connect, it may be subject to risks of delays inherent in the order placing and/or settlement systems.","page_number":88,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"2d062f65-651a-4c54-8edd-dbc51ac412f2","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":88,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"60e8f5c0-1b26-447e-952d-ac5415142429","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":88,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"97018244-8753-40cb-9bde-7c23475093c3","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":88,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"6b98f03e-73c2-456c-921a-6ed0fb4467de","block_type":"box","text":"Tax Risk - Withholding Income Tax Risk.","page_number":88,"box":{"x":103,"y":491,"width":276,"height":11}},{"id":"698c92a8-eff4-4727-a973-2e82b62c95e8","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":88,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"f6c891af-a49d-4b40-9fcc-383d30184f23","block_type":"box","text":"interests from non-government bonds paid to a non-PRC tax resident enterprise, unless the rate is reduced under an","page_number":88,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"d141bd8c-fad6-4d9f-958b-8c4695b17434","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":88,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"fc5cb2ae-d833-424a-b3d5-234c4363d362","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":88,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"9d302678-1012-40aa-8216-f643392c7b75","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":88,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"27167133-b088-4bbe-b64b-88d0e98b31ec","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":88,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"c8ee95dd-8e43-478f-90e5-c349b2c46a03","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":88,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"b58b3d5b-11fd-492e-915c-0f8106fac591","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":88,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"b479dabf-2339-495f-97d1-ca7548cadb8e","block_type":"box","text":"(“RQFIIs”) from tax on capital gains derived from the trading of shares and other equity interest investments on or","page_number":88,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"a7ee81c4-502b-4cbc-95ed-103b01e538c8","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":88,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"ff751d47-f3a2-48c8-84d2-9a9097bc5501","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":88,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"ff00b5bd-16a8-477b-bdd9-e162fc01e440","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":88,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"b267893f-080d-404b-b278-444b559e43bf","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":88,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"e1b85cd8-e362-41e0-9bad-f43ab4d5986a","block_type":"box","text":"temporary exemptions is not stated in the circulars and is subject to termination by the PRC tax authorities with or","page_number":88,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"71c5c59e-c1cd-41a6-ba3f-d14656b53778","block_type":"box","text":"without notice.","page_number":88,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"2f597be1-5a54-4672-8c4c-ff23ed2e44ae","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":88,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"3cf6ec91-5e82-4c98-b1c4-7d8387809fe6","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":88,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"08065acb-9c60-469c-a452-cb80f9c0750d","block_type":"box","text":"the PRC bond market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA","page_number":88,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"f074da6e-fe47-4ebb-adda-bb4a0368982f","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":88,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"c5ca4988-6f04-45e3-9834-516e69445666","block_type":"box","text":"January 15, 2026, it was announced via Public Notice No. 5 of 2026 that the exemption was extended through","page_number":88,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"25d18462-a23f-4f63-961a-b186ffd16ed9","block_type":"box","text":"December 31, 2027.","page_number":88,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"056c439e-9906-47fd-925b-4f7eacfaf57b","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":88,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"1348c186-f652-4266-a544-33dd1f3df39f","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":88,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"99820ba7-76b8-4110-bcff-14c021820ed1","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":88,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"ec5e3924-d269-4441-aa0b-56a38abb2da6","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":88,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"db92ea14-a99e-48a2-8154-18c2cf13de45","block_type":"box","text":"II-48","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f1c42301-0ac3-4e83-8a4d-5a69dd452afc","block_type":"box","text":"NM1026U-5982643-88/241","page_number":88,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"82c1198f-7721-40ff-8da0-557ec5ae8849","block_type":"box","text":"VAT exemptions currently apply to capital gains from trading of QFII and RQFII products, A-Shares traded on the","page_number":89,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"66b0e399-0370-4116-86fa-a88e1d774a08","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":89,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"2faa9433-1bfa-4976-9867-f694b9d43fa5","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":89,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"77c02a0b-30a8-4a48-b56d-7776f1bf4def","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":89,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"5e7a9180-3682-4838-ae20-d71e777b94fd","block_type":"box","text":"market from November 7, 2018 to November 6, 2021. On November 22, 2021, the MoF and STA jointly issued Public","page_number":89,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"09b0bffa-63b7-41e4-9697-15d38026dbc9","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":89,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"b506f2e6-7681-401e-8eb4-357c6322af53","block_type":"box","text":"July 31, 2025, the MoF and STA jointly issued Public Notice No 4 of 2025, stating that VAT will apply with respect to","page_number":89,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"e238dfc0-3e67-440f-9065-68d46be974f9","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":89,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"61665440-8d4c-4710-9a64-acb0f05095cf","block_type":"box","text":"August 8, 2025. It is understood that Public Notice No 4 of 2025 does not supersede the afore-mentioned exemption","page_number":89,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"54782b66-c459-4894-b11f-d6d22d999db6","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":89,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"75add4a0-1466-4fd5-90d0-985a1f73bc36","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":89,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"15bb47a2-ec1b-481e-8d51-4b93678069f6","block_type":"box","text":"tax authorities may result in a loss which could be material to the Fund. There is a risk the PRC tax authorities may","page_number":89,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"e7e2c546-25fd-4e5f-90b3-382b0e72e21f","block_type":"box","text":"withdraw the temporary tax exemptions in the future and seek to collect taxes realized on the sale of A-Shares or","page_number":89,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"9c039a53-2789-4ffd-a02f-5abddaed1408","block_type":"box","text":"PCR sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":89,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"42715100-85ab-4119-82d8-55260d619af2","block_type":"box","text":"temporary tax exemptions are withdrawn, any taxes may be directly borne by or indirectly passed on to the Fund and","page_number":89,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"2927fa04-5d66-4ee1-bd2f-6a54da95c91f","block_type":"box","text":"may result in a substantial impact to its net asset value. As with any net asset value adjustment, investors may be","page_number":89,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"23be9f93-46be-43a9-ba93-37bfe42d76d4","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":89,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"144b1e10-51fc-49ed-b667-000c30f69575","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":89,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"90bb23d9-1160-4849-ade6-b64acab5f7a3","block_type":"box","text":"BlackRock will keep the provisioning policy for tax liability under review and may, in its discretion from time to","page_number":89,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"955261f9-8289-44ed-9341-64faebab2c7f","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":89,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"ca43e9af-8a91-4f2c-bd0d-4c3618a9c935","block_type":"box","text":"the PRC in notifications.","page_number":89,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"bcabbbc3-0cdb-40f6-bcd5-1b44bea04daf","block_type":"box","text":"Investment in Other Investment Companies.","page_number":89,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"7d49904c-7272-425f-a061-b74e8029a40f","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":89,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"e73e22f5-3f98-4c18-a9c3-6d6666247ace","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":89,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"65495f21-6f3f-4200-bcbb-fe5066e29e20","block_type":"box","text":"market funds and ETFs, which are typically open-end funds or unit investment trusts listed on a stock exchange.","page_number":89,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"cff019ad-0474-4b45-abfe-8dbafaea8067","block_type":"box","text":"Under Section 12(d)(1)(A) of the Investment Company Act, however, a Fund may invest up to 10% of its total assets","page_number":89,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"9b53c6ff-bdf7-4f25-9bbc-ba0edb153533","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":89,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"4fc0141a-6a6d-458f-b188-65cf41d5c8fb","block_type":"box","text":"12(d)(1)(A) of the Investment Company Act a Fund may not acquire securities of an investment company if such","page_number":89,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"bc22097f-0cd7-46cc-b6a1-75f899d6cf74","block_type":"box","text":"acquisition would cause the Fund to own more than 3% of the total outstanding voting stock of such investment","page_number":89,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"f7dabb35-1dd8-424a-943b-e1169d06e14f","block_type":"box","text":"company and a Fund may not invest in another investment company if such investment would cause more than 5% of","page_number":89,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"0b00cadc-ac98-46b3-bb1b-b44d76931afc","block_type":"box","text":"the value of the Fund’s total assets to be invested in securities of such investment company. (These limits do not","page_number":89,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"d5cc384f-867f-4b67-8101-a66baf45feab","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":89,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"f2d18353-7de5-412f-bf90-ec421369551c","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":89,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"519c4ac5-c873-4e4c-9e6c-89c3fa8b8fdb","block_type":"box","text":"Act a Fund may not invest in a registered closed-end investment company if such investment would cause the Fund","page_number":89,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"d38f9cd9-2303-4aad-aaf5-4fa501e4b140","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":89,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"0f21b6d3-c85a-4c40-8d78-51475fbd0823","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":89,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"7a48cc7c-f8d9-4af3-8475-1c79d388a393","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":89,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"f5a4b070-b4ea-4b0a-9ac6-e2e070b87a24","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":89,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"4645e8f0-d3f4-4655-af71-1694fd53c672","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":89,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"fa05ba34-ebc6-4bdd-bc23-b26e50ce1e6d","block_type":"box","text":"subject to cer tain conditions.","page_number":89,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"26549bcf-9d7f-48fc-89d3-449d61645183","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":89,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"c44a604f-d9c4-4454-9664-58b91c7e5341","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":89,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"6818993a-cf82-40d1-83a4-1dd14b19ce4e","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":89,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"feda9d9a-306f-4092-a8b5-d8ad2bf5839a","block_type":"box","text":"held by a Fund that trade on an exchange could trade at a discount from NAV, and such discount could increase while","page_number":89,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"2ef12ae1-93be-4138-8977-c8b442d2b572","block_type":"box","text":"the Fund holds the shares. If the market price of shares of an exchange-traded investment company decreases below","page_number":89,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"b28475ee-84cc-4e1d-a2a5-4013ce1e5f26","block_type":"box","text":"the price that the Fund paid for the shares and the Fund were to sell its shares of such investment company at a","page_number":89,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"6a0f678e-f140-4837-9664-5b1de730b418","block_type":"box","text":"time when the market price is lower than the price at which it purchased the shares, the Fund would experience a","page_number":89,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"4ca210d9-e6d2-4a85-bfa5-03cfc61267df","block_type":"box","text":"loss.","page_number":89,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"59d5ed8c-4b7f-4151-9a0a-9ac7690a6c12","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":89,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"98bdfcbd-a449-46ae-9161-2c45152c1661","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":89,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"cd90d44a-f28e-49d9-8ab2-2d38d94fee35","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":89,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"9bb77668-beb7-4a2d-ace3-074e51db5348","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":89,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"b966cf54-fbf7-4c0f-b06d-c52039af4be2","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":89,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"72f9af7c-dafe-4a84-8a1a-0b17b694b185","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":89,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"9b5db01f-1837-4295-909d-090f5b936295","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":89,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"76107f04-5351-4876-b5ef-be8aa9e2946a","block_type":"box","text":"II-49","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c2130fa7-ac6e-4a2d-add6-4735b21c422c","block_type":"box","text":"NM1026U-5982643-89/241","page_number":89,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"0aa652ce-c045-45c7-9def-95f7665519b0","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":90,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"1b8d3198-0d0c-468a-b2d7-0d40c3d5de42","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":90,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"f2b231fc-1fc7-4e57-883d-dd6e3a6aa125","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":90,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"be12722c-9e9d-45e5-a0f5-f7a6c2cdb3b1","block_type":"box","text":"assets.","page_number":90,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"f19407b2-af75-4a41-94b9-5fd8270c1072","block_type":"box","text":"To the extent shares of a Fund are held by another fund, the ability of the Fund itself to purchase other funds","page_number":90,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"e785ee2b-fcd3-4c52-9ccf-18543be20177","block_type":"box","text":"may be limited. In addition, a fund-of-funds (e.g., an investment company that seeks to meet its investment objective","page_number":90,"box":{"x":69,"y":128,"width":833,"height":11}},{"id":"3786568b-9a43-4ca1-9167-cd82dbb5a513","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":90,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"03f10bd5-0d4d-4bae-a203-0ee19f0a74fd","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":90,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"cbde1762-6a2f-48fb-8389-fab1f4c57f21","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":90,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"6575389d-3bda-4822-a01d-188ee92a282a","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":90,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"93ef86df-01c2-4321-aa2b-2231afd26951","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":90,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"c2a6225b-d36b-4f5e-a022-e37f12d63c10","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":90,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"0eef4ed2-2cd4-4f53-b76a-c7e3b40b7d1a","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":90,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"991e764a-a1f8-44ed-a85f-c3757f616919","block_type":"box","text":"countries.","page_number":90,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"cce5a732-40f1-4311-9e48-dbca8604fb92","block_type":"box","text":"Issuer Insolvency Risk.","page_number":90,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"4f8b6984-0c71-475b-b96d-1108698eded4","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":90,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"27f1d0f0-5bc7-40f2-8848-497981f9aeab","block_type":"box","text":"a high degree of credit and market risk, which may be heightened during an economic downturn or recession. Should","page_number":90,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"2b079220-d510-4024-aaf3-8f73bc2ca0b8","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":90,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"25f60efe-872b-430c-a675-628868a33e3c","block_type":"box","text":"restructuring, a wide variety of considerations make an evaluation of the outcome of the Fund’s exposure to the","page_number":90,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"ae859189-44b1-49a7-a5bc-a417ecaf8bfc","block_type":"box","text":"issuer uncer tain.","page_number":90,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"c034c31a-6c7d-49d4-bc9e-3a1f88095a81","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":90,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"2995ac97-a21a-4104-87b7-e62c32d4c338","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":90,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"3543b516-1b0a-4fe6-9c57-4b7b2fea7bd3","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":90,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"250c535b-fa24-4075-829a-83e373ea246e","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":90,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"e4384046-8c5b-4756-8e15-3029395471e4","block_type":"box","text":"in what manner and for what value the obligations evidenced by the securities of the issuer held by the Fund will","page_number":90,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"051c7fca-64a4-428c-aa4f-245ae0081a14","block_type":"box","text":"eventually be satisfied.","page_number":90,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"9de59079-b513-4804-82cc-311eb5df9485","block_type":"box","text":"Even if a plan of reorganization or restructuring is adopted with respect to the securities of the issuer held by the","page_number":90,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"4e21da88-356f-4a5d-8185-acdfa573450c","block_type":"box","text":"Fund, there can be no assurance that the securities or other assets received by a Fund in connection with such plan","page_number":90,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"0f32b73d-505f-4b06-b587-fbafdfaabb2a","block_type":"box","text":"of reorganization or restructuring will not have a lower value or income potential than may have been anticipated or","page_number":90,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"9cccd548-e108-4bbf-97a8-f70e040725f6","block_type":"box","text":"no value. A Fund may be unable to enforce its claims or rights in any collateral or may have its claims or security","page_number":90,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"b280e855-a57e-4b2a-83a4-573b1c981ba5","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":90,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"939da628-62d5-4ad4-b1ba-1f4661d0903f","block_type":"box","text":"In addition, amendments to the U.S. Bankruptcy Code or other relevant laws could alter the expected outcome or","page_number":90,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"2bf548d7-2e37-4a37-8110-ec0e6ad66352","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":90,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"54aebc86-b488-46ec-aa0d-91a52fb88efc","block_type":"box","text":"proceeding, a reorganization or restructuring, the securities of the issuer held by a Fund could be re-characterized or","page_number":90,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"97b4f3ac-9d80-4816-95e1-68d353c19f27","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":90,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"69213ae5-f91b-4084-b6c2-9d402697d0d9","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":90,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"701ffc18-2760-4ce3-bc76-8a687e56dee4","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":90,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"598f156f-1d30-4112-b7a9-213bb373e3a3","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":90,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"c2598243-6c0a-4bf9-b946-0cac4c726cbb","block_type":"box","text":"volatile than those of other asset classes. Holders of equity securities are subject to more risk than holders of debt","page_number":90,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"b028ff85-2d1b-4daf-8ad8-0f93e83d29c7","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":90,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"ecb76c90-d874-4f1a-a2b7-5a568f183a76","block_type":"box","text":"value of equity securities received by a Fund could decline if the financial condition of the issuer deteriorates or if","page_number":90,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"bf985cfb-7393-46a3-80b0-de982d44b45b","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":90,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"6004cc54-3174-462c-9f11-0d321837221e","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":90,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"6bc851c1-22bb-410d-bc93-8c3053ba780e","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":90,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"cdd1e09b-4462-42bb-a0f3-564089286159","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":90,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"93b000b0-099f-4451-b626-a8727baa9f8d","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":90,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"3586af47-19ce-44d0-bdd5-39ecd1f59a99","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":90,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"60fe2e54-98f6-4917-b2f7-fecd9af08bb7","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":90,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"536288c7-b46f-4849-84c6-44dc1c02644b","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":90,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"76fc3a3a-61ee-4199-ae3b-067668744657","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":90,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"49d4a984-4bf3-4864-a2b8-9773276f0012","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":90,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"7635d4f8-2653-411a-b6ef-1173c8cfa105","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":90,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"ebac769e-8b3d-463c-817f-28c6071ea78f","block_type":"box","text":"issuer held by a Fund, the Fund also may be restricted from disposing such securities for a period of time. If a Fund","page_number":90,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"fde6be9a-19ce-4eb1-bc13-8a6702ccabeb","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":90,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"842db2f7-3569-4587-b645-cae660ca6ac7","block_type":"box","text":"that assumed generally by an investor.","page_number":90,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"092ebe18-9b83-435f-a577-e6f97e059264","block_type":"box","text":"II-50","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"720301ea-a554-4793-aeea-bd02d3343d5b","block_type":"box","text":"NM1026U-5982643-90/241","page_number":90,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"4e5cb883-4815-421b-973c-22c3e5aa1cce","block_type":"box","text":"Lease Obligations.","page_number":91,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"ac842fc6-e722-4fe1-949a-136e4cf183ac","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":91,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"f8a87fc6-6307-43cb-a6d5-f83f6e69e606","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":91,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"dbb639e0-f52c-4935-a162-bc9b5eb1f2d6","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":91,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"efd8ec82-9930-4801-86a6-e2a844319f59","block_type":"box","text":"Life Settlement Investments.","page_number":91,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"091b4d48-8172-46ce-b49c-4ebdb53eb2c0","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":91,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"44704fa6-ae7e-448f-8c3d-87f680dd8ca8","block_type":"box","text":"Fund, of existing life insurance contracts for more than their cash surrender value but less than the net benefits to be","page_number":91,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"3913168a-f676-4798-82b1-a07a1bcb495f","block_type":"box","text":"paid under the policies. When a Fund acquires such a contract, it pays the policy premiums in return for the expected","page_number":91,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"6a00aabf-216b-4066-bea3-9b938f953c46","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":91,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"855a04ba-3752-47ca-b0f3-33d16e4c639e","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":91,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"b9fc9a7f-e23f-498f-9008-06bd564b4d45","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":91,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"f88c01b7-64ab-4935-adaf-cc0cb87198d1","block_type":"box","text":"secondary market through life settlement agents. Also, in the event of a bankruptcy of the insurance carrier for a","page_number":91,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"0563ea2c-010c-41e5-9cec-fcf78f5e24fb","block_type":"box","text":"policy, the Fund may receive reduced or no benefits under the contract. A Fund seeks to minimize credit risk by","page_number":91,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"c0261138-aa27-460e-89ba-f804124c7827","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":91,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"fffdf7c0-edd4-422f-a611-2e53e3c6b8bd","block_type":"box","text":"losses on its investments if there is an inaccurate estimation of the life expectancies of viators. A Fund intends to","page_number":91,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"d00ffa90-0e7f-433a-b1cf-98852b70b3ac","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":91,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"97cbb9e8-e82a-4f60-bb6e-d6300b363605","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":91,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"3a9a84dd-d320-45c6-b987-e727f4e021ab","block_type":"box","text":"addition, it is unclear whether the income from life settlements is qualifying income for purposes of the IRS 90%","page_number":91,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"37a4a311-fdb6-4bc2-bc92-669e55073ed8","block_type":"box","text":"gross income test a Fund must satisfy each year to qualify as a regulated investment company. A Fund intends to","page_number":91,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"ea13c881-69d7-4c5b-99d3-753a2441c1dc","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":91,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"0df1142d-8eac-4482-97f2-14f133a87ee7","block_type":"box","text":"Liquidity Risk Management.","page_number":91,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"5d575eae-ff1c-41ab-949a-c66553dfaded","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":91,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"b3d57616-8c3b-4a5b-b9ff-c93aae10c01e","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":91,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"33bdc3ac-a893-458a-8607-8c828d4ba4b0","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":91,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"87f618be-7b95-4003-a7bf-a7308bac8387","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":91,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"106defe5-f624-4288-8b9a-20fa9c310bb2","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":91,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"a320d2ad-dd24-418d-8d9a-8cc7bd1dc5d8","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":91,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"69ada56d-7139-4830-b8e8-88adc2f6dbde","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":91,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"73f4135e-51e3-41fd-9023-ddf64c534fc0","block_type":"box","text":"“illiquid investment.” The Liquidity Rule defines “liquidity risk” as the risk that a Fund could not meet requests to","page_number":91,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"7bc8e339-8de7-4444-adbb-c30490962217","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":91,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"e13be2f0-2dc5-4eeb-89b0-2274f9590adb","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":91,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"2920f070-da79-48d2-be96-ea5ac1cbaa78","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":91,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"5c1b31f4-7696-4fc0-856c-dc440d152464","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":91,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"bc7ee264-b18e-4d49-a877-aaf3a12980af","block_type":"box","text":"Master Limited Partnerships.","page_number":91,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"6888488b-9e1f-4834-bf87-02a4944f6861","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":91,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"7f8077b8-146b-41df-b85c-9d8a9f033f7c","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":91,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"f5af4ee6-d934-4e19-8959-261a7f6fa2f8","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":91,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"ea2b08b5-c9bb-4d69-887f-c0b682647d78","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":91,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"d0f51d9b-26aa-4ebf-954e-f51778e9f23f","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":91,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"e3a709e4-7238-4eee-a798-59443cf5e77b","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":91,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"9b28ff07-39a5-4d83-9e1c-354f90002f07","block_type":"box","text":"typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity","page_number":91,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"46fcaaa7-d126-4980-a098-4967653a3ff6","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":91,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"266fb62c-7759-4758-8ab4-38d1f4578dfd","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":91,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"51982aa1-5ff5-4742-a2fd-2218b3be8d1c","block_type":"box","text":"an up to 2% equity interest in the MLP plus, in many cases, ownership of common units and subordinated units.","page_number":91,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"10118a9a-f69e-4570-b8c3-2c45ebe0dba9","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":91,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"d8322d15-9ff2-472e-808f-7ac27b6e14d0","block_type":"box","text":"in the par tnership’s operations and management.","page_number":91,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"cee421c5-3f17-4925-ae8e-b0a346240386","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":91,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"dbc8a43d-9ca0-4c83-81cc-82066eae1227","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":91,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"fccfa332-eefa-40cf-b38e-a68190b00d07","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":91,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"2e50f213-0f62-435b-9f86-d4cd410cb7c2","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":91,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"594eb5fe-473b-4e6b-815b-b89463aded9b","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":91,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"02680515-43e5-4c5d-ac95-c6e560978ad6","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":91,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"d9e392a1-b9ee-4176-9e52-470e1a7bdbd9","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":91,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"76478a21-c0ae-4c30-a7f8-51549ce637ae","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":91,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"2617e9e8-b62c-47a1-8481-1bd048df6fd6","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":91,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"d100a139-941d-41aa-b25e-639d7b8e6e14","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":91,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"789898d7-7ace-4aa5-890a-9f5f39d735df","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":91,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"db69ff5e-b6a0-4047-a8ef-b8604ab8d2ed","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":91,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"2f5ef3f8-9e1a-48e8-92b6-3b8a9e160322","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"ab922d78-06d1-480c-8881-62eb7d07d3ab","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":91,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"84a79500-b8c4-4609-bf48-641fdaab3db5","block_type":"box","text":"II-51","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cac8142f-9ad5-435d-b868-693c9a394cd1","block_type":"box","text":"NM1026U-5982643-91/241","page_number":91,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"ad25e56a-29dd-4c99-8c3b-ba7ad0ce809d","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":92,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"c6b6ff91-7f1b-4b6d-b2af-0abf30240245","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":92,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"4d624746-56fd-40d7-8837-eb004b12b7cd","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":92,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"be4af3e6-f3b8-447f-b568-b8b0d505f3d7","block_type":"box","text":"common stock of a corporation, owners of common units have limited voting rights and have no ability to annually","page_number":92,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"d03c4769-4c70-4f7a-96fe-1122f7fee232","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":92,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"be893a96-6b6e-423b-a446-d1ffd59e4224","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":92,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"5feaefd9-754f-470d-ae48-8fccd7432c58","block_type":"box","text":"Merger Transaction Risk.","page_number":92,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"c40f5123-7317-49bc-a691-5bd2c48f791f","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":92,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"03f4e5a0-cd2a-47db-9ef1-63fce27a5c11","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":92,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"965e4232-3f44-47a4-bc1b-260003c28040","block_type":"box","text":"in cash, stock of the acquiring company or a combination of both) in excess of the purchase price paid by the Fund","page_number":92,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"66575518-1106-4fc8-9cb3-891a13487969","block_type":"box","text":"for the target company’s stock. However, a Fund is subject to the risk that the merger transaction may be canceled,","page_number":92,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"9f265dd0-460c-4611-aba8-c7a971274f58","block_type":"box","text":"delayed or restructured, in which case a Fund’s holding of the target company’s stock may not result in any profit for","page_number":92,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"2d99d060-541f-4c1b-a8ea-d5fcc01969e0","block_type":"box","text":"the Fund and may lose significant value.","page_number":92,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"aec343dd-99c7-47b3-b70e-d49f6248ff51","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":92,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"89877875-d596-4908-91f5-7d11f3720ddf","block_type":"box","text":"Cer tain","page_number":92,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"9eebab09-108e-4612-a1ee-4676fd3dd280","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":92,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"709131a4-ff14-4172-96c7-a02b6abf3b2b","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":92,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"6d3a3a2f-95de-4be0-a82b-39371d28ccea","block_type":"box","text":"having total assets at the time of purchase in excess of $1 billion. These obligations may be general obligations of","page_number":92,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"36f5f454-09f8-4195-bb19-be8ae8524622","block_type":"box","text":"the parent bank or may be limited to the issuing branch or subsidiary by the terms of a specific obligation or by","page_number":92,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"d8164774-c16c-4255-b26a-f14d30858221","block_type":"box","text":"government regulation. The assets of a bank or savings institution will be deemed to include the assets of its","page_number":92,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"f3ead612-a923-45d9-9ef7-4aec7c91507f","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":92,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"02a26fee-7a3b-4fe9-bd9b-f85983b0d710","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":92,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"341f071a-0be3-4074-808d-0b6a954d50eb","block_type":"box","text":"branches of domestic banks.","page_number":92,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"46b69cb3-5028-4c2c-b4a5-13d98c702a9c","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":92,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"1e721575-c36f-43c4-9d9e-6e55b29e16c4","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":92,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"a1cb51a5-f62c-4b99-8593-6a143b8da708","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":92,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"19e4a1f9-0a27-4f1d-8e43-a3365ee951dd","block_type":"box","text":"paper of a foreign issuer.","page_number":92,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"b4830f2d-a616-420e-bda4-e8e1a37e4c82","block_type":"box","text":"Money Market Securities.","page_number":92,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"c9c13d69-3252-4caa-a020-1e002d6fea1e","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":92,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"bc32b7f3-5d3a-4a56-9173-c36f4524240a","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":92,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"db26d89e-0ba1-43f8-8760-6a0ec809eb72","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":92,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"a37c3c79-8823-4c3f-886f-e5ebe16be9d8","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":92,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"0147e28f-7f00-4bcc-ba58-ac5f4c084c1c","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":92,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"dfe7f484-17b4-4838-81f5-5b18682ff151","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":92,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"a0c029cb-377d-4ffb-9957-12afa472662d","block_type":"box","text":"other issuers rated (at the time of purchase) A-2 or higher by S&P, Prime-2 or higher by Moody’s or F-2 or higher","page_number":92,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"2baaab0a-c309-4eb8-907d-8d2cd3db11da","block_type":"box","text":"by Fitch, as well as high quality corporate bonds rated (at the time of purchase) A or higher by those rating","page_number":92,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"f06b6216-cae0-45cc-bafb-a1192f4d6277","block_type":"box","text":"agencies;","page_number":92,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"4a23ead7-7c84-4645-af11-2d7e9dd21d59","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":92,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"cdbff8f6-d574-4da4-b417-c9bb14d31d57","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":92,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"724063ed-dce6-4c0c-938d-feaa9445c0af","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":92,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"51fd42ec-ed1d-4d4f-b246-ae17ce39bf0f","block_type":"box","text":"obligations and credit card receivables);","page_number":92,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"6b7b1ba2-c2b1-42d7-9870-90c9dbf080ae","block_type":"box","text":"(e) securities issued or guaranteed as to principal and interest by the U.S. Government or by its agencies or","page_number":92,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"4de23cec-6582-4d95-b70d-34d2f123da83","block_type":"box","text":"authorities and related custodial receipts;","page_number":92,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"a8032c4c-d77d-4c92-8af0-65443374eaf4","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":92,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"04fdf8e7-9e2f-45cb-9f76-d7e3ce5d4e05","block_type":"box","text":"agencies or authorities;","page_number":92,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"9979f92e-694d-4ff2-a587-2ff2cf55ab53","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":92,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"19b25394-e8a8-47d8-b4af-ff5d7a0f9988","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":92,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"b8341ad4-75de-497a-a2ff-a660e4c83ae0","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":92,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"afcb30b3-b74e-4e5a-8c57-520853d66b8e","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":92,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"5506ead5-c789-42b4-a78b-bead54245649","block_type":"box","text":"one of its agencies or authorities or which otherwise depend directly or indirectly on the credit of the United","page_number":92,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"f33b367f-b63c-4431-9825-fbd3084a6b89","block_type":"box","text":"States;","page_number":92,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"479a98c3-7fed-4937-af3a-01511543c66a","block_type":"box","text":"(k) fixed and variable rate notes and similar debt instruments rated MIG-2, VMIG-2 or Prime-2 or higher by Moody’s,","page_number":92,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"21ec936a-5063-4663-85fb-3813f7611720","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":92,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"177892d4-dd8b-448c-8ff0-dbd9f5d775ee","block_type":"box","text":"(l) tax-exempt commercial paper and similar debt instruments rated Prime-2 or higher by Moody’s, A-2 or higher by","page_number":92,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"a99ba184-d860-404a-9e27-b4e3b01dae66","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":92,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"73318750-3b70-4f78-9990-e968bf789f09","block_type":"box","text":"II-52","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ad8e884f-2506-4d4f-b886-aa330cf8cda8","block_type":"box","text":"NM1026U-5982643-92/241","page_number":92,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"0bc44027-d7c1-49f4-a62c-800262165526","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":93,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"71f79945-0929-4b8f-b83d-e76bcbdcca7d","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":93,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"d9e6b798-9ff9-490c-875b-4208ad70d900","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":93,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"a8267f09-ea25-4930-991d-33aa5b07a592","block_type":"box","text":"(o) municipal bonds and notes which are guaranteed as to principal and interest by the U.S. Government or an","page_number":93,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"d3bf4f34-4022-45cb-9eae-bcab5af597e9","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":93,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"8ad11b9e-154b-4e03-8957-1630c4563755","block_type":"box","text":"States.","page_number":93,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"b7493c6d-7cf9-409a-82fb-f2cd00bd6b28","block_type":"box","text":"Mortgage-Related Securities.","page_number":93,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"5c737089-16a3-4e20-bda2-bd105130edbd","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":93,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"27ed3070-1f07-4e9f-8f9e-f9d2156aefd0","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":93,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"ed4fad2a-9106-4529-ae9d-9d6d22e87667","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":93,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"1c99a157-29df-4c37-a67d-b03f6a12db6a","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":93,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"8c858efa-cb18-49eb-bbad-dd497a6b82e2","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":93,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"08f6f315-a412-4a42-ae9d-87fbec912978","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":93,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"f94c8f74-e350-47c5-8eda-228be21378f8","block_type":"box","text":"maturity or specified call dates.","page_number":93,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"98fae7b8-d38e-4d35-80d6-128b42989b99","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":93,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"8826d81f-9c42-4f08-a837-a2f82ec6d112","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":93,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"6feae98a-3995-4e7b-833a-e837621797ea","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":93,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"338c235a-5234-43f7-8ccb-f4aedf4b3d34","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":93,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"adb13432-92f9-488c-9b7e-98062ee3815d","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":93,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"68cac2af-10b1-4c79-82a3-1ef781b5858d","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":93,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"27c3ec01-820b-41c4-91d7-24b8c1d72f9a","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":93,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"490a29d1-cfda-4623-8e45-a3649701e1ef","block_type":"box","text":"in prevailing interest rates, and, like other fixed income investments, the ability of a Fund to utilize these instruments","page_number":93,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"8e680085-d5e2-45f7-b399-adef1f3e2373","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":93,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"e1a307ba-7b74-4abb-88c2-85bd43907161","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":93,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"cc4299a2-0d5f-422d-8017-f5a9539c9c1e","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":93,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"78dd2ca9-a6d7-4cab-b8b3-41d05cb36e29","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":93,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"f701f8ee-f396-47b0-953e-9d7fc795971f","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":93,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"ff98ac70-c3ac-42d4-830a-82ae9443cc55","block_type":"box","text":"average life of the securities are based on a number of factors, including the anticipated rate of prepayment of the","page_number":93,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"58be641d-5e83-4214-819e-4c9b07edae64","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":93,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"313571e3-8605-4425-b725-ea153c05d605","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":93,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"7e0592e7-46b9-497d-a1be-c7cd2768b4fb","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":93,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"8370e208-eb6a-45e5-a88c-635c413e2aca","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":93,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"6ca7831e-c463-4785-8fd9-4c5e9d7a3b2e","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":93,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"29119b3f-8177-472c-87b3-d824dce1a89c","block_type":"box","text":"principal prepayments may result in a loss to the extent of the premium paid. If a Fund buys such securities at a","page_number":93,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"9078a0fe-3197-44ee-8be3-5beef8668241","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":93,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"4035932a-2cfd-45a4-af5b-642a0ad411c8","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":93,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"71be4f19-fe33-4242-a61e-1346fdd9e0cd","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":93,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"7e7cb35c-1849-46c8-9daf-83848f8fb256","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":93,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"9bd2eca9-67c1-4db8-aeba-41e39b4f1272","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":93,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"b05e2c21-3fa9-43de-8cf5-4a95556018ff","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":93,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"71938900-89df-4095-9f86-8920c2a59592","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":93,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"e2ffc3d5-bb4e-4599-a167-6d6cfcac7689","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":93,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"9117cba8-927c-459f-a1bd-b6438d70bce0","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":93,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"629a4d47-a3b7-41c9-a5a9-afd69986e9cb","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":93,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"db61a027-b64d-47a0-aba0-af1340c66ec2","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":93,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"b9d461c7-c526-4ddb-888e-8dcab6ffb42a","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":93,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"1c0eea94-38da-4295-b49d-71c98672b09b","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":93,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"8b170cb7-6260-4daa-a1e5-8dbc410c6419","block_type":"box","text":"securities issued or guaranteed by the U.S. Government or one of its agencies or instrumentalities; and (3) those","page_number":93,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"e4c08774-cfeb-43c5-b451-b225b09bd046","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":93,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"48139b17-252e-4157-a2ae-a06c1fc67617","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":93,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"fe5427f0-324b-4182-8c78-2cfc2540e3c3","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":93,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"9bf9e84a-9089-4015-8807-b5f867e2ae4d","block_type":"box","text":"Development. Ginnie Mae is authorized to guarantee, with the full faith and credit of the U.S. Government, the timely","page_number":93,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"7c525b53-d1c7-4e94-9515-a46916be61b1","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":93,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"d8a23f0c-0270-45e8-b8eb-599e5694b029","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":93,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"f1e7c359-fd3d-41ab-82be-e63bff86ae4e","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":93,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"b9d38f69-1012-4adb-b60a-539d6b09a0ad","block_type":"box","text":"II-53","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"369673ac-f2af-452d-86c1-29322e71f8fb","block_type":"box","text":"NM1026U-5982643-93/241","page_number":93,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"362a0dbe-2733-49a0-a82d-1e573f16c22b","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":94,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"34df9228-3659-4f20-a231-328188014926","block_type":"box","text":"payment of principal and interest by Ginnie Mae, whose guarantee is backed by the full faith and credit of the United","page_number":94,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"b694ac4c-e407-4391-a9d4-d366ceaac7ac","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":94,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"504bbd2b-f92f-46c9-b49b-985447eb4fd5","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":94,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"5da46b50-a037-4ec7-a1bc-87c342e275af","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":94,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"ed559d90-64b5-4378-b9f6-a19bd640f828","block_type":"box","text":"guaranteed as to timely payment of principal and interest by Fannie Mae. They are not backed by or entitled to the full","page_number":94,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"538f22c2-8702-4940-95b4-961a7c6e58dc","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":94,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"f01ae554-876c-4374-9e99-2d62069bc2bb","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":94,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"60ab5688-6842-48e0-a7de-2289720bd32b","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":94,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"32a3ba76-5cf9-4239-a35f-93209d05987f","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":94,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"ab79c27a-ce2a-47c7-9bb7-d5752f2b913d","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":94,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"b3a9f055-d7e1-4350-a97d-9e6e282a9a65","block_type":"box","text":"Home Loan Banks and do not constitute a debt or obligation of the United States or of any Federal Home Loan Bank.","page_number":94,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"30dd86b7-b467-418f-aeaa-e1957ad05f93","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":94,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"d9eafc65-de36-4e5a-b7c9-35f5ec88b8cb","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":94,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"0c2ba7ff-d782-4b6d-a2c0-6db832926f45","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":94,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"50f77b4f-a3a9-48fa-bfe2-9df92a1adc79","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":94,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"f0a7ee4f-701d-4377-a24b-4dbdd0ee420e","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":94,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"34b5f14d-d6b6-43bf-9929-c198a182cdc6","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":94,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"91bbe7b5-bd79-4d7e-907f-2149aa3949c9","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":94,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"ecee9ea3-1ebe-41e6-8321-6b5651c0d802","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":94,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"6e198508-0384-4415-8a69-cc152cb0a76e","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":94,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"b6b67923-14c8-4ab7-907c-bd275d3fca4b","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":94,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"b9a8e1bb-e6fd-4d2d-b3b2-45950bf88231","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":94,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"ef4814bf-7cfc-414f-a1d0-6ee5e80e29aa","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":94,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"913ddfcd-39c4-4df2-90b1-b8a93af25fc4","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":94,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"7155c02b-dd95-4737-a0fc-0980baeb01b3","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":94,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"26fbd379-37c6-4f4a-b2e2-b2413e2e642b","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":94,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"791aeae5-ac13-4d41-9441-cc0a9e9f676d","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":94,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"a8a4dc8b-9632-4140-9aea-a98b401e6656","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":94,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"0b7434b9-5072-451b-98d0-2fc90daeb93b","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":94,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"0b17d81d-32c0-4467-a374-d031674919d6","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":94,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"185b9d92-b144-42a0-ac1d-7bea0cf56336","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":94,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"fc5e16ed-6efd-4676-aaa4-3912ffd4e7c0","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":94,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"e1087e03-d29e-45fc-88e0-0105c7ac66ba","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":94,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"fe0ddfe5-7465-40b4-8eb4-f729149df8d9","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":94,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"2c2da5cc-5672-40b0-af03-0782c785e587","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":94,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"9a9bb260-ec3a-46e7-9b3c-02211cb712e1","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":94,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"da45122f-5a00-40a8-91c2-eb2039892dc5","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":94,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"732c5342-0005-428d-9810-e95385e9070b","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":94,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"b13e9b0b-cf78-4a03-b3a1-a7e030072d62","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":94,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"ccc65934-c1a0-4863-8a50-a3bcce60bc0a","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":94,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"dfd13bfa-8e8c-4471-be99-834dc21e8727","block_type":"box","text":"loans. Subprime loans refer to loans made to borrowers with weakened credit histories or with a lower capacity to","page_number":94,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"f717b11a-c30f-4cb5-bd06-b98f00447a6a","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":94,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"bcc4444b-ea25-43f1-92c8-51460feaa8c3","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":94,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"c8242b89-02d4-4d9e-8e12-f0d0129825a7","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":94,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"ee2fc178-2731-468a-879e-7dedb3c9c7b3","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":94,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"3fd8fb62-da81-418e-a7c7-d23a473fc436","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":94,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"1682e4ac-2d84-4588-b378-59bc66768e98","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":94,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"812b7490-338a-46c8-a138-33fc4832b5b8","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":94,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"27ee2584-0ee6-49e7-8306-9524e7ecc201","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":94,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"0691e340-79a2-49db-b730-412967005733","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":94,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"08e4428a-1cf5-4507-81a8-58f985a18898","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":94,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"7ee97336-21db-46cf-b50c-8453066f2f44","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":94,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"3f23fe00-8a4b-4520-a2ca-5e51a62661b3","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":94,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"4e389102-533e-4705-b7de-9f8b54aaaa8c","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":94,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"b05f9632-9d6c-4f9a-aa6c-26e6bc714a45","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":94,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"d281e851-1d1a-4ce5-8fc0-e039db37455e","block_type":"box","text":"II-54","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0f7a2038-4ef8-4069-a026-14c0903846c6","block_type":"box","text":"NM1026U-5982643-94/241","page_number":94,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"3b6cb968-80ab-44ad-9c4b-33d1179e5fea","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":95,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"d41a349e-5ea0-49fb-99bc-8c9a750fdd95","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":95,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"d747e08f-637e-4394-96d5-299e0a512238","block_type":"box","text":"by Ginnie Mae, Freddie Mac, or Fannie Mae. The issuer of a series of CMOs may elect to be treated as a Real Estate","page_number":95,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"fd7aff99-e4f2-4bb3-ad93-b6f1977a3f38","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":95,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"384f33d5-c2b3-4a0c-ba35-a319b1b7a513","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":95,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"47a9844e-3683-402d-bc58-b15920ba1365","block_type":"box","text":"or fixed interest rate, and bearing a different stated maturity date and each must be fully retired no later than its final","page_number":95,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"f661fd4a-9c00-4ea1-bf7e-9ed99b9ed796","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":95,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"75d0f0d0-95d3-431f-928d-f8b4d066964e","block_type":"box","text":"is ordinarily unrelated to the stated maturity date. CMOs often provide for a modified form of call protection through a","page_number":95,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"80205a8a-7775-4b5f-ae03-135abdf8f6da","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":95,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"184d5c93-790c-4c53-94fd-c07c19b7576b","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"1161e545-2861-4834-bf20-20a71d4f61f4","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":95,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"be86f5cf-deb5-46c7-944f-6172a3898a3f","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":95,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"e6e2898f-6ca3-49b0-9c1f-27d7f5eec9fc","block_type":"box","text":"of principal because of the sequential payments.","page_number":95,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"17a4fc04-f86f-4228-8dd9-6f82faa2b326","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":95,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"f7989b5d-e834-4ec1-ac1f-af01fd0a737d","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":95,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"b9bd1da8-4021-4c7c-89a2-7e670588d4c0","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":95,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"51e27150-d9f8-4382-a347-0053b91cff86","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":95,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"2648224a-3361-4df2-bc4f-15241ed3cf62","block_type":"box","text":"on the rule, are also not subject to the limitation of the Investment Company Act on acquiring interests in other","page_number":95,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"70da4db2-a2ef-4eb8-bf32-02e7c723f2cb","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":95,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"ca268f75-0941-4a1d-ac91-d8e6a69e3729","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":95,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"5a00f08b-309f-4a22-b712-8bf072e9ac3b","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":95,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"ec180515-097f-456f-87ce-cfc34ef41f3b","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":95,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"f6c85003-c563-41ca-9270-2ab462cc8f1f","block_type":"box","text":"To the extent that a Fund selects CMOs that cannot rely on the rule or do not meet the above requirements, the Fund","page_number":95,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"1b308734-0dd5-4bac-8857-ac0dcde10e18","block_type":"box","text":"may not invest more than 10% of its assets in all such entities and may not acquire more than 3% of the voting","page_number":95,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"fccac995-cc11-4823-9af2-0c6732e0ca2e","block_type":"box","text":"securities of any single such entity.","page_number":95,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"1dd4edb5-c0e0-4bca-a848-9fc33baf9815","block_type":"box","text":"A Fund may also invest in, among other things, parallel pay CMOs, sequential pay CMOs, and floating rate CMOs.","page_number":95,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"cc474b2b-4b01-4e8c-8ddd-db80765a9624","block_type":"box","text":"Parallel pay CMOs are structured to provide payments of principal on each payment date to more than one class,","page_number":95,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"54289926-bbde-417a-9327-94b3bce78ca2","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":95,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"ec4b8688-852a-455c-abb5-1d174e0939f5","block_type":"box","text":"calculating the final distribution date of each class. Sequential pay CMOs generally pay principal to only one class at","page_number":95,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"6ad40e26-f5a8-4075-a3ef-124fe6861ad7","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":95,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"65e5eebd-7627-4769-a78e-d80815f989ec","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":95,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"403a8609-eb49-45b6-beef-8b18f861f978","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":95,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"50806774-c7d4-4116-bf0a-6c508d7d3682","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":95,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"e9c20fbe-218e-4226-9270-18c024170ebe","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":95,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"333401de-dfac-4b13-a55c-ffd257e760d0","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":95,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"ff573d8a-ce3c-4140-897c-d138e81f7805","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":95,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"eac08ae6-9408-429f-b4a5-47e2eb2ad823","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":95,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"3843b5de-a6d7-407d-878e-696cd3b8fe2b","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":95,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"e00b53c2-4f9a-4a20-8f09-3be58d814f93","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":95,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"384c6c3f-1b9b-42fa-8b40-67c04605f832","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":95,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"3a426f4f-9ea5-49bf-8893-4171b1d0b5ff","block_type":"box","text":"the final distribution date of each class of PAC. In order to create PAC tranches, one or more tranches generally must","page_number":95,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"74616c79-5c93-4110-9a90-da0a47769960","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":95,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"a6597624-259f-48e3-944f-09a37a5ba37a","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":95,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"4ed4a755-826b-4e1f-878a-cfe58aaea2f4","block_type":"box","text":"classes.","page_number":95,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"ca759209-d874-4b9c-b2cc-d80ee0dc6805","block_type":"box","text":"TACs are similar to PACs in that they require that specified amounts of principal be applied on each payment","page_number":95,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"c105c3ef-cc0f-4128-a2e0-635afb23655e","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":95,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"e7a33db2-dda8-41b2-8fc6-a06c444420cb","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":95,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"8b502aa4-4026-4592-b44e-ea63ba48640e","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":95,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"bad427c5-bd2a-456a-8549-4777f8996e0f","block_type":"box","text":"not both. TACs thus provide more cash flow stability than a regular sequential paying class, but less than a PAC. TACs","page_number":95,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"773ae4ab-d2e2-437f-b459-96f7e8813414","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":95,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"8feb5c23-83d4-40f6-a2da-e16c1d9dd24e","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":95,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"aeb7ad05-8d35-4e7a-8430-c3bf3a7d533a","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":95,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"c99e8e0f-3800-4839-83d1-10456edd41d9","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":95,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"6fb4f178-d2fc-4949-a915-2a7c28819f71","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":95,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"4fa8d9ea-3b80-40f3-9fff-551f1ee7c59e","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":95,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"1741cfdf-bc18-4b17-a7f1-5cd989024e83","block_type":"box","text":"to a designated benchmark index.","page_number":95,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"171debbc-fa16-44bb-86e8-aaf62afa8d84","block_type":"box","text":"II-55","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e0e0f6f3-4971-4421-ac97-4258bdbfa432","block_type":"box","text":"NM1026U-5982643-95/241","page_number":95,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"880da996-dc4d-466c-9e34-5730012d7cfd","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":96,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"36b1ba6b-2a53-4a22-ad15-b8725d1f4a3a","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":96,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"9e103c3c-1113-47e0-a5a0-51d90ba24e08","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":96,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"27d847e6-9563-4099-b2ed-a9b53874aa1e","block_type":"box","text":"more rapidly to levels above that of the ARM’s maximum rate, the ARM’s coupon may represent a below market rate","page_number":96,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"f36aeca4-5805-4a8d-ac44-02657ea3cec0","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":96,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"e6e2dfd6-fe10-4cd5-a148-cd56c3b2efd9","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":96,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"9a6b7518-12c0-4827-8932-a8244eceef35","block_type":"box","text":"payment is not sufficient to pay the interest accruing on an ARM, any such excess interest is added to the principal","page_number":96,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"f4f26da4-edb2-4fa9-b392-62239f6830fa","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":96,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"9cae5892-f00c-41c0-a173-f3f66df7a9ac","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":96,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"a5bdb7d1-b674-45e3-820e-b8d062560702","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":96,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"7438c610-120a-452c-ae4b-9071ab2ce998","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":96,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"6abfd4a3-1490-430e-aa34-cea21d14eed6","block_type":"box","text":"CMO Residuals.","page_number":96,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"cea14382-8338-4087-abf8-cc70bc606c0a","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":96,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"61ec992a-32bc-4c53-b1f8-7de4aaf70628","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":96,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"ae0757b1-fd0e-4a3e-95fd-99e5bfb79743","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":96,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"788adfb9-ae8d-4d53-843c-8f529349d486","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":96,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"408403c6-4449-4082-8f1a-a7ede6b58f7c","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses of","page_number":96,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"b7c1f87d-d774-4d0b-b1ca-6cc88781183d","block_type":"box","text":"the issuer. The residual in a CMO structure generally represents the interest in any excess cash flow remaining after","page_number":96,"box":{"x":68,"y":302,"width":832,"height":11}},{"id":"578b681d-9030-4e19-8e4f-8068251570e7","block_type":"box","text":"making the foregoing payments. Each payment of such excess cash flow to a holder of the related CMO residual","page_number":96,"box":{"x":69,"y":317,"width":799,"height":11}},{"id":"854690e9-0a70-46d5-b19e-7e076606ef7a","block_type":"box","text":"represents income and/or a return of capital. The amount of residual cash flow resulting from a CMO will depend on,","page_number":96,"box":{"x":69,"y":332,"width":833,"height":11}},{"id":"61e5e850-02ae-4f4b-bc76-ff56114f49f1","block_type":"box","text":"among other things, the characteristics of the mor tgage assets, the coupon rate of each class of CMO, prevailing","page_number":96,"box":{"x":69,"y":347,"width":809,"height":11}},{"id":"ebee32e5-c545-42e2-b61c-a286f4609952","block_type":"box","text":"interest rates, the amount of administrative expenses and the prepayment experience on the mor tgage assets. In","page_number":96,"box":{"x":70,"y":362,"width":810,"height":11}},{"id":"3f1ce3f4-4151-4079-ba2f-ee79fb21bb29","block_type":"box","text":"par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the related underlying","page_number":96,"box":{"x":70,"y":377,"width":795,"height":12}},{"id":"ed6fb69e-9bd6-47bb-91c9-adae522fda54","block_type":"box","text":"mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related securities. In addition, if","page_number":96,"box":{"x":69,"y":392,"width":838,"height":12}},{"id":"7855a93a-33dc-4e4f-9b98-5ed42989d942","block_type":"box","text":"a series of a CMO includes a class that bears interest at an adjustable rate, the yield to maturity on the related CMO","page_number":96,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"7badc208-d5cb-418a-afab-39d3b7730f69","block_type":"box","text":"residual will also be extremely sensitive to changes in the level of the index upon which interest rate adjustments are","page_number":96,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"188e45bc-3aac-4f6f-8fdf-c66884f43a18","block_type":"box","text":"based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in a CMO residual.","page_number":96,"box":{"x":69,"y":438,"width":738,"height":11}},{"id":"6f958b6d-bd01-4359-8e43-7b2602f376fe","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":96,"box":{"x":102,"y":460,"width":758,"height":12}},{"id":"e262afcd-10ae-4a3f-a66f-b711e5dc0067","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":96,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"b1be9d64-81d4-4775-a2f4-872cedf2d093","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":96,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"64087d3e-9384-4c5f-aa6b-ff6eda1ae13e","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":96,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"268221b6-592c-4c9b-af27-955d819c3ca1","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":96,"box":{"x":68,"y":521,"width":820,"height":11}},{"id":"604080e7-12f1-4e95-b2c4-2e768c4113d9","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":96,"box":{"x":69,"y":536,"width":650,"height":11}},{"id":"b8889a67-b56e-4cd5-b14c-0ef5b29ff29a","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":96,"box":{"x":102,"y":559,"width":267,"height":11}},{"id":"c49d3091-e825-4894-a6d8-0dfecfcdc21f","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":96,"box":{"x":375,"y":559,"width":493,"height":11}},{"id":"717d6acb-9ac5-4424-9956-6f97cf59c477","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":96,"box":{"x":70,"y":574,"width":798,"height":11}},{"id":"a65357a3-474e-481a-ae9e-c54f6e9ed488","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":96,"box":{"x":69,"y":589,"width":826,"height":11}},{"id":"e6641b01-b421-45bb-bf8b-af4426eebe86","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":96,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"8e936a52-edf8-4902-99c9-aa21c3ef62df","block_type":"box","text":"principal only or PO class) receives some of the interest and most of the principal from the underlying assets, while","page_number":96,"box":{"x":70,"y":619,"width":821,"height":11}},{"id":"f3b7e979-7dae-4c5f-b5f6-6230c3331a55","block_type":"box","text":"the other class (the interest only or IO class) receives most of the interest and the remainder of the principal. In the","page_number":96,"box":{"x":68,"y":634,"width":826,"height":11}},{"id":"85b2ab07-ba21-45cd-ba8a-83500171cd23","block_type":"box","text":"most extreme case, the IO class receives all of the interest, while the PO class receives all of the principal. While a","page_number":96,"box":{"x":69,"y":649,"width":822,"height":11}},{"id":"2140d63e-3f5f-4ab4-a430-0e9aa4c52325","block_type":"box","text":"Fund may purchase securities of a PO class, a Fund is more likely to purchase the securities of an IO class. The yield","page_number":96,"box":{"x":70,"y":664,"width":834,"height":12}},{"id":"96738534-08cc-44da-8e29-8331ca0a84b0","block_type":"box","text":"to maturity of an IO class is extremely sensitive to the rate of principal payments (including prepayments) on the","page_number":96,"box":{"x":68,"y":680,"width":800,"height":11}},{"id":"f1b7b395-797b-47e0-bc16-c3d98c913ee9","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":96,"box":{"x":69,"y":695,"width":786,"height":11}},{"id":"7d802ed4-a21a-43b2-8528-395c4085462c","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":96,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"cb66216b-5560-4dee-9895-3babbfd30074","block_type":"box","text":"experience greater than anticipated payments of principal, a Fund may fail to recoup fully its initial investment in IOs.","page_number":96,"box":{"x":69,"y":725,"width":832,"height":11}},{"id":"510b6593-0a52-46af-a34e-961fffea1c7f","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":96,"box":{"x":70,"y":740,"width":824,"height":11}},{"id":"f54d4ce3-d5c4-4223-9d63-14b1a5fa6fdf","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":96,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"4caffa8e-f77e-4ac2-b84c-15574a86ee49","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":96,"box":{"x":69,"y":770,"width":818,"height":11}},{"id":"ac3e8e40-90af-4066-ab2d-3f34066eb804","block_type":"box","text":"generally will purchase IOs only as a component of so called “synthetic” securities. This means that purchases of IOs","page_number":96,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"e72015d4-accf-4555-95cb-7a2651760a2e","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":96,"box":{"x":68,"y":801,"width":802,"height":11}},{"id":"08078058-fed9-45b5-9d22-5ec4530b9016","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":96,"box":{"x":69,"y":816,"width":805,"height":11}},{"id":"d7d99793-3df7-4d37-9ec3-241ff974bd6e","block_type":"box","text":"effect on a Fund because of its holdings of IOs should be diminished somewhat because of the increased yield on","page_number":96,"box":{"x":69,"y":831,"width":814,"height":11}},{"id":"ddec369e-1eaf-4f7b-80aa-612d100e212b","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":96,"box":{"x":68,"y":846,"width":683,"height":11}},{"id":"cd01059a-eaf9-4097-a736-960ac0735424","block_type":"box","text":"Tiered Index Bonds.","page_number":96,"box":{"x":103,"y":869,"width":138,"height":9}},{"id":"2f8d170b-7163-4f1c-a1f0-a8899c4fe834","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":96,"box":{"x":247,"y":869,"width":638,"height":11}},{"id":"945f3b37-6f02-4177-b7dd-fad140aec6de","block_type":"box","text":"index bond is tied to a specified index or market rate. So long as this index or market rate is below a predetermined","page_number":96,"box":{"x":70,"y":884,"width":825,"height":11}},{"id":"22ed40a6-33cb-400b-a73d-31849fa2d379","block_type":"box","text":"“strike” rate, the interest rate on the tiered index bond remains fixed. If, however, the specified index or market rate","page_number":96,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"ad0fa540-b9e1-410c-9de8-e8302ce1cfe3","block_type":"box","text":"II-56","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7a7cdab-ba70-43d3-9634-1072dbd47fe0","block_type":"box","text":"NM1026U-5982643-96/241","page_number":96,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"954464a0-490e-4b41-8221-72377b0b0b5a","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":97,"box":{"x":69,"y":45,"width":738,"height":10}},{"id":"2137ef52-38ad-40ac-b6b3-9e588e174321","block_type":"box","text":"circumstances, the interest rate on a tiered index bond, like an inverse floater, will move in the opposite direction of","page_number":97,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"032d7735-05a7-42c6-8c71-0129a8bd7437","block_type":"box","text":"prevailing interest rates, with the result that the price of the tiered index bond may be considerably more volatile than","page_number":97,"box":{"x":70,"y":75,"width":836,"height":11}},{"id":"25e1fb95-ab47-4cd2-8a36-339be90a22a3","block_type":"box","text":"that of a fixed-rate bond.","page_number":97,"box":{"x":68,"y":90,"width":174,"height":9}},{"id":"9a8e96dd-b33e-4913-a9ad-e55c11099bfd","block_type":"box","text":"TBA Commitments.","page_number":97,"box":{"x":103,"y":113,"width":133,"height":9}},{"id":"7e4fe0e7-bff4-42af-9a8d-24716209acdc","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":97,"box":{"x":243,"y":113,"width":653,"height":11}},{"id":"6ff60f44-6a16-4bb9-9d84-493961b51b46","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":97,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"79f4fe20-a8d1-4697-b328-a4e3c4412909","block_type":"box","text":"with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not","page_number":97,"box":{"x":68,"y":143,"width":825,"height":11}},{"id":"9a42de2f-2c06-4d70-a827-76a74956638e","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":97,"box":{"x":70,"y":158,"width":793,"height":11}},{"id":"880b4b02-45ba-48d1-b1df-db6716c02d5a","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":97,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"3f1ee47e-2bee-4b7d-bd28-f64fdf825ad5","block_type":"box","text":"price, with payment and delivery on an agreed upon future settlement date (which may be referred to as having a","page_number":97,"box":{"x":70,"y":188,"width":804,"height":12}},{"id":"252a82a7-c5cd-4e7d-9c85-4b37896f30d2","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":97,"box":{"x":69,"y":203,"width":779,"height":12}},{"id":"497a0265-18ca-470b-b878-803ff5a35567","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":97,"box":{"x":69,"y":219,"width":810,"height":11}},{"id":"e24d4c8d-521a-4d9b-8320-8789ee5044ca","block_type":"box","text":"below.","page_number":97,"box":{"x":69,"y":234,"width":43,"height":9}},{"id":"50119034-5396-4a7b-a0c4-e8c88e054490","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":97,"box":{"x":102,"y":257,"width":157,"height":11}},{"id":"409cdade-2735-4ce2-8a92-1307a9504761","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":97,"box":{"x":266,"y":256,"width":634,"height":12}},{"id":"9f680d48-31fe-4ce1-8367-84bcbacadf89","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":97,"box":{"x":70,"y":271,"width":825,"height":12}},{"id":"e4fd5111-a1ae-4a87-8b48-98dfd4ef9364","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":97,"box":{"x":69,"y":286,"width":805,"height":12}},{"id":"b771e4ce-e8ac-473f-8187-98bd92415323","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":97,"box":{"x":70,"y":302,"width":817,"height":11}},{"id":"214697e4-83b6-4eb8-8ea8-f0f480ebe6cd","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":97,"box":{"x":69,"y":317,"width":820,"height":11}},{"id":"3e0a2a9a-bba1-458b-b37e-3222c9cc86c2","block_type":"box","text":"be entitled to receive interest and principal payments on the securities sold. Proceeds of the sale will be invested in","page_number":97,"box":{"x":69,"y":332,"width":827,"height":11}},{"id":"bb898d41-cd7c-4570-a333-a781de9ee9c0","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":97,"box":{"x":69,"y":347,"width":806,"height":11}},{"id":"a14740fa-277a-4f14-9a71-a532a4062a02","block_type":"box","text":"such income does not exceed the income, capital appreciation and gain or loss that would have been realized on the","page_number":97,"box":{"x":69,"y":362,"width":833,"height":11}},{"id":"dc3aee1f-eca4-40ea-bd44-1ff44a4d7753","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":97,"box":{"x":69,"y":377,"width":836,"height":11}},{"id":"fbb4777f-8e3e-43e4-a317-7d57524266d1","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":97,"box":{"x":69,"y":392,"width":607,"height":11}},{"id":"2bc43729-d377-4874-a886-96821e9d7000","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":97,"box":{"x":102,"y":415,"width":744,"height":11}},{"id":"5a8a0fbe-80cc-4b82-9cea-f88b515daf85","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":97,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"daeb6aa3-aaf8-446c-b955-cbc869e6ff2b","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":97,"box":{"x":69,"y":445,"width":433,"height":12}},{"id":"bb014519-bc1b-400c-b6a3-95a88e993cd6","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":97,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"1864a3ed-e7e8-471c-99c6-b026cd31ea71","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":97,"box":{"x":70,"y":483,"width":824,"height":11}},{"id":"b0f52cf7-2f0f-4995-a6a5-19f1890a3ab8","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":97,"box":{"x":69,"y":498,"width":774,"height":11}},{"id":"00eae3b9-2ef3-48db-b4ce-dfa34d9edccd","block_type":"box","text":"securities in the forward transaction.","page_number":97,"box":{"x":69,"y":513,"width":261,"height":9}},{"id":"283f80a2-45ba-4b8a-8403-e9daf1605899","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":97,"box":{"x":101,"y":536,"width":785,"height":11}},{"id":"e8564d0a-b61f-478d-b2da-cf561b0c66f0","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":97,"box":{"x":69,"y":551,"width":812,"height":11}},{"id":"cd637f86-06ca-4e6f-8705-cb03e666ea31","block_type":"box","text":"that the market value of the securities subject to a Fund’s forward purchase commitment may decline below, or the","page_number":97,"box":{"x":68,"y":566,"width":824,"height":11}},{"id":"e08e2004-2b47-4535-ba62-f56ff1517dde","block_type":"box","text":"market value of the securities subject to a Fund’s forward sale commitment may increase above, the exercise price","page_number":97,"box":{"x":69,"y":581,"width":824,"height":11}},{"id":"7d45ce7f-c5e3-4962-94c9-28cd256faf53","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":97,"box":{"x":69,"y":596,"width":828,"height":12}},{"id":"fc5382dc-c562-4530-9f4a-8bf2b92ada46","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":97,"box":{"x":69,"y":612,"width":430,"height":11}},{"id":"743b9da2-7eff-4e16-9953-2a89c197b5da","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":97,"box":{"x":102,"y":634,"width":759,"height":12}},{"id":"8cf7b12e-adb9-4c0f-8c71-8b0ef782841f","block_type":"box","text":"securities (e.g., dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":97,"box":{"x":69,"y":649,"width":788,"height":12}},{"id":"977cd0d0-8290-4405-a5cd-453426ef5046","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":97,"box":{"x":69,"y":664,"width":813,"height":12}},{"id":"c9da6fb2-92e9-46a5-a6bf-e916f5dab025","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":97,"box":{"x":70,"y":680,"width":783,"height":11}},{"id":"7e3cee25-1224-4f7f-952d-dbeb0234f72c","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":97,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"f1ff8399-9956-4701-8261-bd0c6dd421c0","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":97,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"86e8bc03-81eb-4bde-af70-d7171a6a98f9","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":97,"box":{"x":69,"y":725,"width":788,"height":11}},{"id":"492a4f7e-7113-4c47-a8d3-30180e7a4dee","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":97,"box":{"x":70,"y":740,"width":489,"height":11}},{"id":"9eddf755-7107-44c1-a1c7-8823af4073c4","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":97,"box":{"x":102,"y":763,"width":260,"height":11}},{"id":"8b94ed19-e2ce-4e41-9d12-e325919b01f4","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":97,"box":{"x":368,"y":763,"width":473,"height":11}},{"id":"bcd5ea41-33d9-47ba-b40e-5640fd458778","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":97,"box":{"x":69,"y":778,"width":768,"height":11}},{"id":"29ebc366-c393-4aff-b6fa-9dd70e35ea25","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":97,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"ba48897b-b8ea-443a-ab75-e8c7f03dd837","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":97,"box":{"x":70,"y":808,"width":760,"height":11}},{"id":"4e216288-a1ed-4d27-8fd8-b3af1e455d7f","block_type":"box","text":"securities, the yield to maturity on a NIM security is sensitive not only to changes in prevailing interest rates but also","page_number":97,"box":{"x":69,"y":823,"width":832,"height":12}},{"id":"1501668c-64e8-41a1-86fb-0d7e52c631fb","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":97,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"03c2452f-37e0-4778-9f77-e53a1a03820d","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":97,"box":{"x":69,"y":854,"width":764,"height":11}},{"id":"49e1a100-2be5-4f19-9a35-9f1c5b15d73d","block_type":"box","text":"Municipal Investments.","page_number":97,"box":{"x":102,"y":876,"width":169,"height":11}},{"id":"247e5169-e77d-467c-aeba-789e9596eb3e","block_type":"box","text":"II-57","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9f8bffe2-4c68-4012-9c42-bbc4599b0099","block_type":"box","text":"NM1026U-5982643-97/241","page_number":97,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"ae8cfd74-c802-46ff-9a2e-e533634cdf19","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":98,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"17a343e5-e156-45dc-973b-0dd4f060363b","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":98,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"06fc559c-aa5b-45a4-86b2-99dca7de101c","block_type":"box","text":"payments from which, in the opinion of bond counsel to the issuer, are excludable from gross income for U.S. federal","page_number":98,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"61f8ed18-e720-45a4-92d1-c9ab4842a3ed","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":98,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"59cb98fc-5031-4318-a226-5ac0016c3fb3","block_type":"box","text":"pay interest excludable from gross income for purposes of state and local income taxes of the designated state and/","page_number":98,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"e02f8a0b-c84d-4231-b944-235524fd61c3","block_type":"box","text":"or allow the value of a Fund’s shares to be exempt from state and local taxes of the designated state (“State","page_number":98,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"58faa00a-df07-4d1b-b350-2540b32ba0db","block_type":"box","text":"Municipal Bonds”). The Municipal Funds may also invest in securities not issued by or on behalf of a state or territory","page_number":98,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"367bfc96-ad80-442a-b8ed-baab4520e482","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":98,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"c2bec408-de45-46ed-985b-183e157f794d","block_type":"box","text":"gross income for purposes of U.S. federal income tax and state and local income taxes of the designated state and/","page_number":98,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"746fc6cc-4b68-4f69-a5c6-d60a5f84079c","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":98,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"ae10cf32-86c0-4eeb-8301-23b830e5eb95","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":98,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"63a2904a-aeaa-4c0f-ab0e-6fa355e78db1","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":98,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"95d55944-58fb-49f2-b783-efd73d61ec5a","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":98,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"4b56b5ad-424f-443b-8f98-277c41acdfc1","block_type":"box","text":"law. Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for U.S. federal income tax","page_number":98,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"024a3e49-8eae-45bd-bfa4-20a9941529e3","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":98,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"f6009937-740e-4bd1-a686-919fcc421ae1","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":98,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"8fb9c819-ae4f-4ff6-98d7-2f5c7534b81c","block_type":"box","text":"income tax and state and local income taxes of a designated state and/or allow the value of a Fund’s shares to be","page_number":98,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"114c87a3-f0fb-4fc5-b398-1dd1714e5db0","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":98,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"2224ee3a-cb4d-4516-9034-acd4bcf6254c","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":98,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"1716657a-70e9-462e-b0e4-d540257ff19c","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":98,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"f0579c3f-1572-49d9-b92c-4984c40967ed","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":98,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"56bb9ecf-e183-4785-8f3b-676bc3892c75","block_type":"box","text":"The risks and special considerations","page_number":98,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"a500acfb-6298-47ba-9b80-ee6be93b985a","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":98,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"ed9ffdeb-0b61-4efa-a8ab-4b4b9f371e67","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":98,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"f85e6478-4d92-406d-9b5e-84ed7906de2a","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":98,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"8e1c76ac-b259-4841-8449-1cd9bd2d20bf","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":98,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"19dfac33-88f7-4602-8ab6-d95b11461c49","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":98,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"115779c5-b067-491d-986c-9d3f526c813c","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":98,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"27ba5248-cce3-4ed0-8faa-886737fbb195","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":98,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"2694eb04-1c4b-4acf-8e27-5bf0abad7439","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":98,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"0c5c9cfb-836b-4336-83e6-a0bae20afb8f","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":98,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"50c7fdb0-427c-43dd-a51e-d4e5e67b9356","block_type":"box","text":"Description of Municipal Bonds.","page_number":98,"box":{"x":102,"y":521,"width":225,"height":11}},{"id":"1074aa85-09fe-4336-bb3c-b01a4382dab9","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":98,"box":{"x":102,"y":543,"width":754,"height":12}},{"id":"e3c2f801-bd77-42d2-a00e-a9c2b046f393","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":98,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"7e026476-940b-4d0a-986a-e1181cdf08ee","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":98,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"78aa83fb-be09-458a-a9e9-453f35d716ad","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":98,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"ca8ecce4-3706-481e-b6c8-c7b7bf7c7c46","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":98,"box":{"x":68,"y":604,"width":822,"height":11}},{"id":"ed825f9d-9319-42e5-8510-5630c8c72006","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":98,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"3c063840-6eb8-496d-b7bc-7d24a0d462fc","block_type":"box","text":"excluded from gross income for U.S. federal income tax purposes and any applicable state and local taxes. Other","page_number":98,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"e5e577ce-55e3-4a0d-87fd-9ecee69d231f","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":98,"box":{"x":68,"y":649,"width":812,"height":12}},{"id":"3e315bea-2c94-45e0-8a25-cce9a4765feb","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":98,"box":{"x":70,"y":664,"width":792,"height":12}},{"id":"9060ab1d-1245-4750-9da1-eb8f6b969b45","block_type":"box","text":"federal tax laws place substantial limitations on the size of such issues. The interest on Municipal Bonds may bear a","page_number":98,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"01bd438b-0e8e-4769-ba22-b18d7a0b5a21","block_type":"box","text":"fixed rate or be payable at a variable or floating rate. The two principal classifications of Municipal Bonds are “general","page_number":98,"box":{"x":68,"y":695,"width":840,"height":11}},{"id":"f87f3831-c8fa-43e6-b3b2-8b52c8931186","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":98,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"bddcc65a-4b49-4e8c-8398-44b8dc74b91e","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":98,"box":{"x":69,"y":725,"width":401,"height":11}},{"id":"92da47cb-565d-441c-9efa-326c1f7b431f","block_type":"box","text":"General Obligation Bonds.","page_number":98,"box":{"x":102,"y":748,"width":184,"height":11}},{"id":"7fc2f5cb-c814-44cf-a5fc-256216d6fe4c","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":98,"box":{"x":292,"y":748,"width":613,"height":11}},{"id":"94eb82fe-1439-4d63-a091-e7d58dc187e6","block_type":"box","text":"taxing power for the payment of principal and interest. The taxing power of any governmental entity may be limited,","page_number":98,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"d74d936b-667f-469f-8724-225e4b0c4790","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":98,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"986b0976-f338-445b-a950-e9dc8c7921b7","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":98,"box":{"x":70,"y":793,"width":786,"height":11}},{"id":"185b280e-21ed-4c95-9987-9e89171c7a69","block_type":"box","text":"industrial base or inability to attract new industries, economic limits on the ability to tax without eroding the tax base,","page_number":98,"box":{"x":70,"y":808,"width":835,"height":11}},{"id":"6cd32de8-0305-46f0-a734-96b136672439","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":98,"box":{"x":69,"y":823,"width":840,"height":12}},{"id":"34af733b-86e4-4eb1-b23e-5f2802ece249","block_type":"box","text":"relies on federal or state aid, access to capital markets or other factors beyond the state’s or entity’s control.","page_number":98,"box":{"x":69,"y":838,"width":782,"height":11}},{"id":"50607a1b-7867-4363-8bef-7e8817de508b","block_type":"box","text":"Accordingly, the capacity of the issuer of a general obligation bond as to the timely payment of interest and the","page_number":98,"box":{"x":68,"y":853,"width":791,"height":12}},{"id":"b2bcf384-2b45-4b57-af63-3bb5fbbdb112","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":98,"box":{"x":69,"y":869,"width":630,"height":11}},{"id":"e8bba2f5-dad2-4482-b618-4f17b732f354","block_type":"box","text":"Revenue Bonds.","page_number":98,"box":{"x":102,"y":891,"width":114,"height":9}},{"id":"f8c23f82-ed81-4b8c-ba5c-c058f7523975","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":98,"box":{"x":223,"y":891,"width":676,"height":11}},{"id":"b090723b-b325-4b54-9cd3-d5b7c344354e","block_type":"box","text":"facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source such as","page_number":98,"box":{"x":68,"y":906,"width":791,"height":11}},{"id":"e099c887-e124-4f10-8394-c28cf4663bff","block_type":"box","text":"II-58","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3141fbe3-023a-4a96-9a56-28f651aa82d0","block_type":"box","text":"NM1026U-5982643-98/241","page_number":98,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"4fb4907d-eb14-4447-848e-23858521cfe9","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":99,"box":{"x":70,"y":45,"width":824,"height":11}},{"id":"a1840a94-f549-43f9-af15-fc9114855cf8","block_type":"box","text":"of principal in accordance with the terms of the revenue or special obligation bond is a function of the economic","page_number":99,"box":{"x":69,"y":60,"width":798,"height":11}},{"id":"fc70f587-76c6-482b-93ff-06264825ecbc","block_type":"box","text":"viability of such facility or such revenue source.","page_number":99,"box":{"x":68,"y":75,"width":336,"height":11}},{"id":"e2c018e9-8676-4187-850e-d33f7133bb52","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":99,"box":{"x":102,"y":98,"width":801,"height":11}},{"id":"0fe3bd8d-198c-41a3-9b4b-ef2ee628c703","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":99,"box":{"x":70,"y":113,"width":800,"height":11}},{"id":"435c427d-d6f4-4d61-aeb8-f211f2470ed7","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":99,"box":{"x":70,"y":128,"width":810,"height":11}},{"id":"97f2ac8f-427a-458e-9f84-c4413ecc8387","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":99,"box":{"x":69,"y":143,"width":830,"height":11}},{"id":"dcba0e62-5849-4096-85e7-6d9802e139d5","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":99,"box":{"x":70,"y":158,"width":828,"height":11}},{"id":"4eabfdd5-8a35-4237-9d26-c0bd6426aa55","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":99,"box":{"x":69,"y":173,"width":804,"height":11}},{"id":"a73edb5a-88d9-4113-a011-df2d1bd46a45","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":99,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"fcdde791-d421-461d-b86f-1eefa324c5aa","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":99,"box":{"x":68,"y":203,"width":457,"height":12}},{"id":"acdf9d5f-af11-4e91-9035-589d094ad472","block_type":"box","text":"PABs.","page_number":99,"box":{"x":102,"y":226,"width":38,"height":9}},{"id":"5f109eef-53df-453e-adc9-c7e42857ddb5","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":99,"box":{"x":147,"y":226,"width":730,"height":11}},{"id":"d253b069-1999-4230-974e-efd99788d3e2","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":99,"box":{"x":70,"y":241,"width":755,"height":11}},{"id":"4e3e1531-1121-4e95-8e7a-815144e8e7d6","block_type":"box","text":"construction or improvement of a facility to be used by the entity. Such bonds are secured primarily by revenues","page_number":99,"box":{"x":69,"y":256,"width":797,"height":11}},{"id":"0a9182d0-2bba-48f5-826d-f56a44db06b1","block_type":"box","text":"derived from loan repayments or lease payments due from the entity, which may or may not be guaranteed by a","page_number":99,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"d00c4f6a-de0e-4519-b6a9-1ce997d79f93","block_type":"box","text":"parent company or otherwise secured. PABs generally are not secured by a pledge of the taxing power of the issuer of","page_number":99,"box":{"x":70,"y":286,"width":840,"height":12}},{"id":"472514be-a238-40c8-b626-2b153143e010","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":99,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"89df381a-3835-49cc-9c67-d2517dd71e72","block_type":"box","text":"revenues of a private entity and be aware of the risks that such an investment may entail. The continued ability of an","page_number":99,"box":{"x":69,"y":317,"width":832,"height":11}},{"id":"5cdbffa0-9e9b-468a-8c45-02990baad30b","block_type":"box","text":"entity to generate sufficient revenues for the payment of principal and interest on such bonds will be affected by","page_number":99,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"845bb242-19ef-4162-a60b-fb449c3820ca","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":99,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"a2a98587-e00a-4ebe-8cee-3c5c6dddfb3f","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":99,"box":{"x":68,"y":362,"width":816,"height":11}},{"id":"d95cba6f-1771-4498-82d3-bc65cd3d60a9","block_type":"box","text":"the par ticular facility being financed.","page_number":99,"box":{"x":68,"y":377,"width":258,"height":12}},{"id":"b01d8994-0d8a-4080-b96f-cff1b6bb8940","block_type":"box","text":"Moral Obligation Bonds.","page_number":99,"box":{"x":102,"y":400,"width":169,"height":11}},{"id":"9d3c04c4-23ae-45c4-8de9-4814d7295aaf","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":99,"box":{"x":278,"y":400,"width":628,"height":11}},{"id":"6d5697ec-2a15-43e4-b645-25fe9d88ad00","block_type":"box","text":"issuer of moral obligation bonds is unable to meet its obligations, the repayment of such bonds becomes a moral","page_number":99,"box":{"x":70,"y":415,"width":809,"height":11}},{"id":"ac42a3b3-d5cf-4026-beca-a699c82fdf2e","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":99,"box":{"x":69,"y":430,"width":816,"height":11}},{"id":"9b80ab8e-dfb0-4e99-9795-c32ee2720fe2","block_type":"box","text":"that issued the bonds.","page_number":99,"box":{"x":68,"y":446,"width":160,"height":8}},{"id":"f33d22a5-a4ad-4918-bc09-30c51310bbec","block_type":"box","text":"Municipal Notes.","page_number":99,"box":{"x":102,"y":468,"width":118,"height":11}},{"id":"5cb93894-8ce0-4c42-be51-fe5ce8b08fcd","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":99,"box":{"x":227,"y":468,"width":683,"height":11}},{"id":"48618da8-55c5-48ff-aa5d-773c5af81a02","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":99,"box":{"x":70,"y":483,"width":807,"height":11}},{"id":"d503755a-110a-490d-9448-6fdfa1ca2fb5","block_type":"box","text":"repayment on the note may be delayed or the note may not be fully repaid, and a Fund may lose money.","page_number":99,"box":{"x":69,"y":498,"width":739,"height":11}},{"id":"1d722bc2-628c-4e80-85cc-5b99391c8104","block_type":"box","text":"Municipal Commercial Paper.","page_number":99,"box":{"x":102,"y":521,"width":205,"height":11}},{"id":"dfdb366d-52a7-4fd6-a4bf-7f9262954d95","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":99,"box":{"x":314,"y":521,"width":586,"height":11}},{"id":"900730cc-3ac0-4975-bd65-0a3fb274fd2b","block_type":"box","text":"financing needs. The lack of security presents some risk of loss to a Fund since, in the event of an issuer’s","page_number":99,"box":{"x":68,"y":536,"width":767,"height":11}},{"id":"4aeb92ab-34de-4bd5-b305-63182eb733da","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":99,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"ceb562e1-2aa7-4d6f-ba26-2965b761671c","block_type":"box","text":"Municipal Lease Obligations.","page_number":99,"box":{"x":102,"y":574,"width":203,"height":11}},{"id":"3edbf7cc-6a07-45eb-9987-86ec1da45a9f","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":99,"box":{"x":311,"y":574,"width":566,"height":11}},{"id":"ae87ef1a-c692-4b5c-87ea-e89c8b494c8e","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":99,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"59b992fd-312d-4d9b-9dbf-ac70d948c2f6","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":99,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"5b9a060e-eba3-4d91-8917-9089321ca054","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":99,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"f5b95ca8-7f17-4b7f-bebb-2095be523409","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":99,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"9fb1b07c-445f-4f12-891d-edbb7ea74052","block_type":"box","text":"lease obligations do not constitute general obligations of the issuer for which the issuer’s unlimited taxing power is","page_number":99,"box":{"x":70,"y":649,"width":820,"height":12}},{"id":"e5898c37-027f-4489-92b4-dc97b8560c2c","block_type":"box","text":"pledged, a lease obligation is frequently backed by the issuer’s covenant to budget for, appropriate and make the","page_number":99,"box":{"x":70,"y":664,"width":808,"height":12}},{"id":"be2a059b-65fb-48be-b071-d642ba378d34","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":99,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"2864054d-e2a4-48b7-81c2-80ef8832848f","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":99,"box":{"x":68,"y":695,"width":795,"height":11}},{"id":"0c8b164e-9726-4afd-b744-02cfeafb7b76","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":99,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"f0e310cf-3c10-4eae-b9af-ad94d754465f","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":99,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"b579acf1-9ae5-43a0-a633-60771ffe99f1","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":99,"box":{"x":69,"y":740,"width":817,"height":11}},{"id":"58b84681-6130-4922-bc3d-a4b3e80d0412","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":99,"box":{"x":69,"y":755,"width":572,"height":11}},{"id":"abd61486-8deb-4d6d-b2f6-89d419c56109","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":99,"box":{"x":101,"y":778,"width":791,"height":11}},{"id":"35ca3d61-b27f-49db-a749-c53ad3d106e1","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":99,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"43ad447b-d80d-4137-b302-e8ce4e1da3c5","block_type":"box","text":"and local governmental units. Such non-payment would result in a reduction of income to a Fund, and could result in","page_number":99,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"842631b1-5aee-4432-b188-757eb1b951b2","block_type":"box","text":"a reduction in the value of the municipal lease experiencing non-payment and a potential decrease in the NAV of a","page_number":99,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"b7db67be-297b-4353-a519-b5ac3d30fd7e","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":99,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"d5a984ff-03b4-465c-9803-573598209295","block_type":"box","text":"such an issuer, a Fund could experience delays and limitations with respect to the collection of principal and interest","page_number":99,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"ee8e1917-f59a-4e59-9b29-1235c59a5e7d","block_type":"box","text":"on such municipal leases and a Fund may not, in all circumstances, be able to collect all principal and interest to","page_number":99,"box":{"x":69,"y":869,"width":807,"height":11}},{"id":"4518481e-1130-4c4e-82e6-951841d927bd","block_type":"box","text":"which it is entitled. To enforce its rights in the event of a default in lease payments, a Fund might take possession of","page_number":99,"box":{"x":68,"y":884,"width":835,"height":11}},{"id":"6fd8ec21-fc89-4b0e-b006-e8f8fb943468","block_type":"box","text":"and manage the assets securing the issuer’s obligations on such securities, which may increase a Fund’s operating","page_number":99,"box":{"x":69,"y":899,"width":828,"height":11}},{"id":"d4d44c7d-87f1-496b-883b-beb317a00bf2","block_type":"box","text":"II-59","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c87271b7-dc2b-4590-bfa4-ee5fa4e82835","block_type":"box","text":"NM1026U-5982643-99/241","page_number":99,"box":{"x":764,"y":970,"width":146,"height":7}},{"id":"61030c48-8ebd-49e8-81b4-6d6c83dfa26e","block_type":"box","text":"expenses and adversely affect the NAV of a Fund. When the lease contains a non-appropriation clause, however, the","page_number":100,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"401fb343-819e-4d5e-95f6-c1646ebb6f4b","block_type":"box","text":"failure to pay would not be a default and a Fund would not have the right to take possession of the assets. Any","page_number":100,"box":{"x":68,"y":60,"width":793,"height":11}},{"id":"4cd3f94a-5f68-4c22-8eda-eafeaf87b1d4","block_type":"box","text":"income derived from a Fund’s ownership or operation of such assets may not be tax-exempt. In addition, a Fund’s","page_number":100,"box":{"x":70,"y":75,"width":810,"height":11}},{"id":"47ee9246-866e-4289-8a8c-8a7a7b4f31d9","block_type":"box","text":"intention to qualify as a “regulated investment company” under the Code, may limit the extent to which a Fund may","page_number":100,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"15433f34-b3ed-4e22-b9e4-08318bbd2128","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":100,"box":{"x":69,"y":105,"width":790,"height":11}},{"id":"77827cb2-3761-4677-a306-bb8b97521264","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":100,"box":{"x":69,"y":120,"width":574,"height":11}},{"id":"7aa2ae64-d9e4-4e25-a172-3cd20d245e14","block_type":"box","text":"Tender Option Bonds.","page_number":100,"box":{"x":103,"y":143,"width":150,"height":11}},{"id":"1b3f79de-ea27-4299-902f-802a6becbbdb","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":100,"box":{"x":260,"y":143,"width":613,"height":11}},{"id":"782e90cc-1d3a-4f43-bd66-8d70056232a3","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":100,"box":{"x":69,"y":158,"width":796,"height":11}},{"id":"077751c1-5004-456d-9e5f-dca4d60e3b29","block_type":"box","text":"invest pay interest or income that, in the opinion of counsel to the issuer, is exempt from regular U.S. federal income","page_number":100,"box":{"x":70,"y":173,"width":834,"height":11}},{"id":"ef9968fb-04b0-4980-a46f-baa3e1b7b121","block_type":"box","text":"tax. BlackRock will not conduct its own analysis of the tax status of the interest or income paid by TOB Residuals","page_number":100,"box":{"x":68,"y":188,"width":807,"height":11}},{"id":"a1aac43c-7fba-46a1-8649-e9507eee64f5","block_type":"box","text":"held by the Funds, but will rely on the opinion of counsel to the issuer. Although volatile, TOB Residuals typically offer","page_number":100,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"83f14920-5f55-433c-9616-c4213199cd82","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":100,"box":{"x":68,"y":218,"width":814,"height":12}},{"id":"250073f2-43e6-4066-bd80-94091fcde471","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":100,"box":{"x":68,"y":234,"width":598,"height":11}},{"id":"b88fa5c6-03e1-4b23-a877-cef411fd9c0e","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":100,"box":{"x":101,"y":256,"width":751,"height":12}},{"id":"56e9be62-11d7-4688-8176-8c2d588ac493","block_type":"box","text":"Municipal Bonds contributed by one or more funds (a “TOB Trust”). A TOB Trust typically issues two classes of","page_number":100,"box":{"x":70,"y":271,"width":786,"height":12}},{"id":"affc8dcd-34ce-4c26-88e0-e6d1e5465892","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":100,"box":{"x":69,"y":286,"width":813,"height":12}},{"id":"669f0a95-c1ae-4370-9646-28c15ca1b78b","block_type":"box","text":"TOB Residuals, which are generally issued to the fund(s) that transferred Municipal Bonds to the TOB Trust. The","page_number":100,"box":{"x":68,"y":302,"width":799,"height":11}},{"id":"78884de9-054d-466b-be95-83d89b991a9f","block_type":"box","text":"Funds may invest in both TOB Floaters and TOB Residuals. TOB Floaters may have first priority on the cash flow from","page_number":100,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"9a5e61e3-639a-4efb-aff0-a6693eb52a76","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":100,"box":{"x":68,"y":332,"width":828,"height":11}},{"id":"04eef162-8793-4162-826c-04c07b32a880","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":100,"box":{"x":70,"y":347,"width":826,"height":11}},{"id":"b470b409-f084-46bc-bf89-eb291c708d79","block_type":"box","text":"as a holder of TOB Residuals, is paid the residual cash flow from the TOB Trust. A Fund that contributes the","page_number":100,"box":{"x":69,"y":362,"width":768,"height":11}},{"id":"866eab8d-f08c-4cf7-a4f3-42f3bbc457e6","block_type":"box","text":"Municipal Bonds to the TOB Trust is paid the cash received by the TOB Trust from the sale of the TOB Floaters, less","page_number":100,"box":{"x":70,"y":377,"width":825,"height":11}},{"id":"ba88d4cf-6f55-4f48-8675-55036a1c21c8","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":100,"box":{"x":69,"y":393,"width":764,"height":11}},{"id":"9486cae5-6190-45e5-8256-2b4353ad003e","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":100,"box":{"x":70,"y":407,"width":838,"height":12}},{"id":"409a535b-d2e2-4def-ac95-8e9aa0015664","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":100,"box":{"x":68,"y":423,"width":810,"height":11}},{"id":"f34ef170-c2bb-44fc-bfa4-79f2fce0a418","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":100,"box":{"x":68,"y":438,"width":704,"height":11}},{"id":"13ea91b5-1ff3-4519-bcc1-18b8383dafdb","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":100,"box":{"x":102,"y":460,"width":804,"height":12}},{"id":"01cbf57c-fba0-4e3b-9342-b9fd60f0292f","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":100,"box":{"x":70,"y":475,"width":805,"height":12}},{"id":"aeaed857-6478-4f6e-97c2-0a2e8762720c","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":100,"box":{"x":69,"y":491,"width":752,"height":11}},{"id":"8aecc7b4-ca3a-4d2f-b3c8-daee7890be5a","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":100,"box":{"x":70,"y":506,"width":211,"height":11}},{"id":"64b99942-a909-4955-a4df-963b11be8494","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":100,"box":{"x":101,"y":528,"width":802,"height":12}},{"id":"c3536abe-c984-430e-b3c4-a95364a90a8d","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":100,"box":{"x":70,"y":543,"width":753,"height":12}},{"id":"de5bca8e-9beb-40f5-a3b9-51649981d941","block_type":"box","text":"enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by","page_number":100,"box":{"x":69,"y":559,"width":829,"height":11}},{"id":"7aef9037-e809-48f8-a87c-92391c963a63","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":100,"box":{"x":69,"y":574,"width":819,"height":11}},{"id":"35269f83-3b70-4970-91fa-9b2f8b959eb6","block_type":"box","text":"and a Fund, as a TOB Residual holder, would be responsible for reimbursement of any payments of principal and","page_number":100,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"b7d91762-ef96-4a05-aed3-1e991e40b072","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":100,"box":{"x":70,"y":604,"width":357,"height":11}},{"id":"05db32e5-20cc-4a10-bf71-07d4402e9c62","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":100,"box":{"x":101,"y":627,"width":807,"height":11}},{"id":"c1598779-5268-4ae4-867f-6d51e740dcfe","block_type":"box","text":"share of the TOB Floaters to tender their notes to the TOB Trust at par plus accrued interest. Thereafter, the Fund","page_number":100,"box":{"x":69,"y":642,"width":810,"height":11}},{"id":"3675b182-0b95-46f0-a52b-9fb3c7644678","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":100,"box":{"x":69,"y":657,"width":825,"height":11}},{"id":"cf55328d-fdff-46dc-96f6-28557d10a2bf","block_type":"box","text":"exposure for the Fund to the entire return of the Municipal Bonds in the TOB Trust, with a net cash investment by the","page_number":100,"box":{"x":69,"y":672,"width":834,"height":11}},{"id":"98303a2d-50a0-4cbc-8b6e-c57830fea4c2","block_type":"box","text":"Fund that is less than the value of the Municipal Bonds in the TOB Trust. This multiplies the positive or negative","page_number":100,"box":{"x":70,"y":687,"width":797,"height":11}},{"id":"8cd5b19f-0e94-4438-8301-e96d40a9edb9","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":100,"box":{"x":70,"y":702,"width":809,"height":12}},{"id":"c4ee22fd-7f39-4599-bc29-9b4809000d35","block_type":"box","text":"depends on the value of the Municipal Bonds deposited in the TOB Trust relative to the value of the TOB Floaters it","page_number":100,"box":{"x":69,"y":717,"width":820,"height":11}},{"id":"b7502b64-d7a8-4a7a-afc8-4752ad925423","block_type":"box","text":"issues.","page_number":100,"box":{"x":70,"y":733,"width":49,"height":9}},{"id":"43424132-811c-45c6-9cec-c43537d21659","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":100,"box":{"x":101,"y":755,"width":795,"height":11}},{"id":"3b8d4d40-4d44-4282-a50a-c5ede35200df","block_type":"box","text":"the principal amount of the TOB Floaters issued by the related TOB Trust exceeds 75% of the principal amount of the","page_number":100,"box":{"x":68,"y":770,"width":833,"height":11}},{"id":"49cf8911-bc6a-4089-9868-903f359e2789","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":100,"box":{"x":70,"y":786,"width":293,"height":11}},{"id":"214b9a1e-678e-4a92-8888-9ee175e23cb2","block_type":"box","text":"The TOB Trust may be collapsed without the consent of a Fund upon the occurrence of tender option termination","page_number":100,"box":{"x":101,"y":808,"width":802,"height":11}},{"id":"dd2addc2-ec4d-484e-af43-d75658c6ef71","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":100,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"0310b5ed-202b-448f-be5a-2346541b0225","block_type":"box","text":"include the bankruptcy or default of the issuer of the Municipal Bonds held in the TOB Trust, a substantial downgrade","page_number":100,"box":{"x":70,"y":838,"width":836,"height":12}},{"id":"8d78b3fa-3adb-4d06-948b-ff783fee97ed","block_type":"box","text":"in the credit quality of the issuer of the Municipal Bonds held in the TOB Trust, failure of any scheduled payment of","page_number":100,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"601a27b7-a95d-4b0c-b1a6-a23f67d98dd3","block_type":"box","text":"principal or interest on the Municipal Bonds, and a judgment or ruling that interest on the Municipal Bonds is subject","page_number":100,"box":{"x":70,"y":869,"width":833,"height":11}},{"id":"e002e5ce-edfd-4d6b-91f3-5036e690bcc2","block_type":"box","text":"to U.S. federal income taxation. MTEs may include, among other things, a failed remarketing of the TOB Floaters, the","page_number":100,"box":{"x":68,"y":884,"width":834,"height":11}},{"id":"813a7ef8-ea30-4085-b02b-a39a30635c26","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":100,"box":{"x":70,"y":899,"width":838,"height":11}},{"id":"fd77a301-95a7-4919-a2e3-e412c76ff245","block_type":"box","text":"II-60","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"022d774e-723b-46f1-9fee-688b4c2c7605","block_type":"box","text":"NM1026U-5982643-100/241","page_number":100,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"7357d18f-ad30-4501-907b-adcd29712c17","block_type":"box","text":"value of the Municipal Bonds held in the TOB Trust. Upon the occurrence of a TOTE or an MTE, a TOB Trust would be","page_number":101,"box":{"x":68,"y":45,"width":831,"height":11}},{"id":"9c4e5fc2-1cfe-4826-9401-95f46ad595c3","block_type":"box","text":"liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the remarketing","page_number":101,"box":{"x":70,"y":60,"width":823,"height":11}},{"id":"815fa697-c25f-4d2f-b2c8-6e4ce6de81e3","block_type":"box","text":"agent of the TOB Floaters and the Liquidity Provider (defined below). In the case of an MTE, after the payment of fees,","page_number":101,"box":{"x":69,"y":75,"width":839,"height":11}},{"id":"68f51584-c654-43f4-bd0a-a0dbf90353f6","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (i.e., the Fund). In contrast, in the","page_number":101,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"5454ed64-e3c4-422b-a1a6-0796fdac526f","block_type":"box","text":"case of a TOTE, after payment of fees, the holders of TOB Floaters and the TOB Residual holders would be paid pro","page_number":101,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"6d84e114-12f9-410f-a340-9ccde85e3f9d","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":101,"box":{"x":69,"y":120,"width":479,"height":11}},{"id":"5e10d763-a86e-44ee-ad54-6ed580291274","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":101,"box":{"x":101,"y":143,"width":797,"height":11}},{"id":"fd28dd38-99dd-4874-8149-800c26e584b0","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":101,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"00cc2ec5-915b-46fe-b328-15515a7ee513","block_type":"box","text":"the holders of the TOB Floaters to tender their TOB Floaters in exchange for payment of par plus accrued interest on","page_number":101,"box":{"x":68,"y":173,"width":828,"height":11}},{"id":"8311d4bb-e995-4865-aac9-46efc89810ad","block_type":"box","text":"any business day (subject to the non-occurrence of a TOTE described above). Depending on the structure of the TOB","page_number":101,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"64f9bf39-90b9-4368-a786-e876ec929103","block_type":"box","text":"Trust, the Liquidity Provider may purchase the tendered TOB Floaters, or the TOB Trust may draw upon a loan from","page_number":101,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"563bbfea-70e2-4276-82f2-e8f506b2212c","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":101,"box":{"x":68,"y":219,"width":434,"height":11}},{"id":"e69ae380-0e98-48f3-b0bb-055eb492af0c","block_type":"box","text":"When a Fund invests in TOB Trusts on a non-recourse basis, and the Liquidity Provider is required to make a","page_number":101,"box":{"x":101,"y":241,"width":772,"height":11}},{"id":"3ebc79f8-d7b5-4366-aa5e-b6bb7f68df93","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":101,"box":{"x":70,"y":256,"width":831,"height":11}},{"id":"fd7fda13-4d4c-4416-9632-d61c7ff383a5","block_type":"box","text":"held in the TOB Trust and then fund the balance, if any, of the amount owed under the liquidity facility over the","page_number":101,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"897724e3-40d9-4bf5-b5be-829e41b56f2e","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":101,"box":{"x":70,"y":286,"width":831,"height":12}},{"id":"ecaaa6e9-6bd8-4ec7-94ee-9eac21111f3d","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":101,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"25991713-9170-4584-962c-110393c242b4","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":101,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"c5cf0118-b386-4535-a455-5782367da81c","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":101,"box":{"x":68,"y":332,"width":788,"height":11}},{"id":"3e6f4046-f1b0-4804-a54c-21dfdb33dfc0","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":101,"box":{"x":70,"y":347,"width":823,"height":11}},{"id":"4339c56b-a677-46ae-93c4-35e4a660453e","block_type":"box","text":"Trust.","page_number":101,"box":{"x":68,"y":362,"width":39,"height":9}},{"id":"dcf93771-2de6-4605-add9-02a34f3d65cd","block_type":"box","text":"Under accounting rules, Municipal Bonds of a Fund that are deposited into a TOB Trust are investments of the","page_number":101,"box":{"x":102,"y":385,"width":784,"height":11}},{"id":"645f3744-c3d9-4e8a-978d-6bf6128bcfd9","block_type":"box","text":"Fund and are presented on the Fund’s Schedule of Investments and outstanding TOB Floaters issued by a TOB Trust","page_number":101,"box":{"x":70,"y":400,"width":830,"height":11}},{"id":"b341e0d5-17f8-4580-9dd1-b44c408e89bb","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":101,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"fab41f66-af6f-46a6-808b-5d725ac0a224","block_type":"box","text":"Municipal Bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Floaters and other","page_number":101,"box":{"x":70,"y":430,"width":831,"height":11}},{"id":"d029c05d-a7d9-4da2-8495-4dabef12118b","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":101,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"47a3831f-5183-4241-894a-a56827dbcba9","block_type":"box","text":"of a Fund. In addition, under accounting rules, loans made to a TOB Trust sponsored by a Fund may be presented as","page_number":101,"box":{"x":69,"y":460,"width":832,"height":12}},{"id":"37456ed0-8378-4f86-b991-69e11d5609b3","block_type":"box","text":"loans of the Fund in the Fund’s financial statements even if there is no recourse to the Fund’s assets.","page_number":101,"box":{"x":70,"y":475,"width":728,"height":9}},{"id":"7437ae7b-55be-4f08-b026-e2e7a15ceee3","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":101,"box":{"x":102,"y":498,"width":776,"height":11}},{"id":"5df5ff60-02f4-420b-826a-c5d9012f45e6","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":101,"box":{"x":68,"y":513,"width":837,"height":12}},{"id":"2578758d-a3c0-4dfd-b185-051ed9c44b56","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":101,"box":{"x":69,"y":528,"width":836,"height":12}},{"id":"af67662c-fa2e-47db-9ba2-23c50aac092c","block_type":"box","text":"Bonds deposited in the TOB Trust, the holder of the TOB Floaters relies upon the terms of the agreement with the","page_number":101,"box":{"x":70,"y":543,"width":809,"height":12}},{"id":"98c370b7-6c4e-4b06-91ba-b512d830c6bd","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":101,"box":{"x":68,"y":559,"width":836,"height":11}},{"id":"e336f674-cba9-4577-89bc-16a462d6a2c7","block_type":"box","text":"with TOB Floaters, however, may be increased in the current market environment as a result of recent downgrades to","page_number":101,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"417db5a3-b84e-4e25-93d7-a43af431535a","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":101,"box":{"x":68,"y":589,"width":827,"height":11}},{"id":"c914536a-5d16-4b77-ae9d-9a5a270c9ab8","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":101,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"99c7374a-129a-4ee1-8263-76a780d0d9e9","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":101,"box":{"x":70,"y":619,"width":599,"height":11}},{"id":"c23a2090-4467-42b0-a7ac-3e1b27d84c86","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":101,"box":{"x":102,"y":642,"width":762,"height":11}},{"id":"6fbfeab6-9ff2-4d31-bd0c-1434bf86a478","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":101,"box":{"x":69,"y":657,"width":818,"height":11}},{"id":"3879ecca-7341-4641-94d8-4fa8a06cfa9f","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":101,"box":{"x":68,"y":672,"width":778,"height":11}},{"id":"352ab633-ed74-4407-a791-6b27868e4c5c","block_type":"box","text":"(i) complies with the 300% asset coverage ratio with respect to such transactions and any other borrowings in the","page_number":101,"box":{"x":69,"y":687,"width":811,"height":11}},{"id":"61846c9b-bba2-4e1c-be26-33e299395f88","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":101,"box":{"x":69,"y":702,"width":786,"height":12}},{"id":"18ebb2ac-4632-4752-b471-dedac0f963bf","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":101,"box":{"x":70,"y":717,"width":588,"height":12}},{"id":"90d7e775-9363-47a4-a905-14b79436d303","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":101,"box":{"x":102,"y":740,"width":279,"height":11}},{"id":"a59b0140-0511-4eba-926f-2f58dfc379bd","block_type":"box","text":"In response to the restrictions imposed by the section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":101,"box":{"x":102,"y":763,"width":799,"height":11}},{"id":"27c1f2cb-ebb0-4f65-840c-0d1c16cd35f5","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":101,"box":{"x":69,"y":778,"width":786,"height":11}},{"id":"575ed337-042f-4fe3-b8f4-3ea4ea2d56bd","block_type":"box","text":"ensure that no banking entity is sponsoring the TOB Trust for purposes of the Volcker Rule. Specifically, a Fund will","page_number":101,"box":{"x":69,"y":793,"width":816,"height":11}},{"id":"1a38d2c8-bf0a-40a2-b66e-a192e6f726cd","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":101,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"29e3fee4-c1a8-41d3-8a3d-3e9b6d58d97d","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":101,"box":{"x":69,"y":823,"width":812,"height":12}},{"id":"2ebe05cf-e56e-4802-b994-a2c5abf6a7c9","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":101,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"180a8099-548d-4a7c-9b3c-be65f6b718ee","block_type":"box","text":"could limit the market for such structured TOB Trust transactions or a Fund’s ability to hold TOB Residuals. Under","page_number":101,"box":{"x":69,"y":853,"width":810,"height":12}},{"id":"0bd7a1e4-52d4-4309-b528-4b8d7b7f8a94","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":101,"box":{"x":68,"y":869,"width":803,"height":11}},{"id":"4a25a38d-5bcb-45e4-9a33-df2e9f6db182","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":101,"box":{"x":69,"y":884,"width":665,"height":11}},{"id":"5fc9f94f-0030-4f03-9ef0-f3e26e116ddc","block_type":"box","text":"II-61","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"08879827-ff54-4405-817e-b2231e276201","block_type":"box","text":"NM1026U-5982643-101/241","page_number":101,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"dbbf0441-4114-4c29-a01e-b2edff20e155","block_type":"box","text":"Under the new structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees,","page_number":102,"box":{"x":102,"y":45,"width":791,"height":11}},{"id":"faa76a02-9757-4191-b262-7dd72b627d35","block_type":"box","text":"and remarketing agents, act at the direction of, and as agent of, a Fund as the TOB Residual holder. Similar to the","page_number":102,"box":{"x":69,"y":60,"width":815,"height":11}},{"id":"b876f67e-3469-49eb-bb46-fb2364d42567","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":102,"box":{"x":68,"y":75,"width":808,"height":11}},{"id":"cd2b8434-a37e-40bd-9a1e-c5a7b2411270","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":102,"box":{"x":70,"y":90,"width":830,"height":11}},{"id":"f69903f3-bd9f-4370-96f9-a5040ea6948f","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (i.e., the Fund). Tendered TOB Floaters continue to be","page_number":102,"box":{"x":68,"y":105,"width":819,"height":11}},{"id":"e451eae5-ead2-4aeb-97ea-5d480119941b","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":102,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"23f04bfd-6b12-488f-8cbd-4628a21cbe4c","block_type":"box","text":"TOB Floaters for its own account in the event of a failed remarketing, which may increase the likelihood that a TOB","page_number":102,"box":{"x":68,"y":135,"width":816,"height":12}},{"id":"3b7a59ed-c580-44ab-a311-5f75a9f42cf2","block_type":"box","text":"Trust will need to be collapsed and liquidated in order to purchase the tendered TOB Floaters. In the event of a failed","page_number":102,"box":{"x":68,"y":150,"width":835,"height":11}},{"id":"9e3b1588-2f3c-466c-9ada-e0e0a4751a08","block_type":"box","text":"remarketing of TOB Floaters, the Liquidity Provider, at its option, may advance a loan to the TOB Trust the proceeds","page_number":102,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"735ce68e-242f-4db8-ba61-68c7109ce078","block_type":"box","text":"of which would be used by the TOB Trust to purchase the tendered TOB Floaters. The Liquidity Provider is not","page_number":102,"box":{"x":69,"y":181,"width":777,"height":11}},{"id":"4939b7ab-000d-48ee-ab1a-741ffa4931ac","block_type":"box","text":"obligated to advance such a loan. The TOB Trust would be the borrower with respect to any such loan. Any loans","page_number":102,"box":{"x":69,"y":196,"width":800,"height":11}},{"id":"63ba6780-6341-4076-84d2-4a7ba80cea01","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":102,"box":{"x":69,"y":211,"width":696,"height":11}},{"id":"cafb503c-941e-4c0a-9991-70369c6c6067","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":102,"box":{"x":102,"y":234,"width":745,"height":11}},{"id":"db968ef1-5a03-45cf-b4ab-9f4df1dade94","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":102,"box":{"x":69,"y":249,"width":797,"height":11}},{"id":"e9cf27a9-45f9-49f5-b64b-1b27f7e7e797","block_type":"box","text":"contractual recourse to the Fund’s assets if the Fund holds a non-recourse TOB Residual. However, as described","page_number":102,"box":{"x":69,"y":264,"width":803,"height":10}},{"id":"b50357c3-2158-45ea-bd5e-f2161d6d95f0","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":102,"box":{"x":69,"y":279,"width":838,"height":11}},{"id":"f331c02e-4398-487c-a329-66d975fc91c1","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":102,"box":{"x":101,"y":302,"width":801,"height":11}},{"id":"6f3f1c64-7664-4053-9f32-5c79e66c42c9","block_type":"box","text":"(the “Risk Retention Rules”), which took effect in December 2016. The Risk Retention Rules require the sponsor of a","page_number":102,"box":{"x":69,"y":317,"width":838,"height":11}},{"id":"b3b5b31a-5e6e-4072-956e-e95fd9e1c418","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":102,"box":{"x":68,"y":332,"width":787,"height":11}},{"id":"7128fe87-1513-43dd-b9d8-b38736629f3b","block_type":"box","text":"Bonds. The Risk Retention Rules may adversely affect the Fund’s ability to engage in TOB Trust transactions or","page_number":102,"box":{"x":70,"y":347,"width":791,"height":11}},{"id":"c6fbbb08-8eb0-46f0-85fa-4c9907136a39","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":102,"box":{"x":70,"y":362,"width":466,"height":9}},{"id":"89a7af9c-dd90-41f6-ab47-1ab055103d18","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":102,"box":{"x":101,"y":385,"width":726,"height":11}},{"id":"f652ad43-a60e-42bf-8446-7cd767d782d8","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":102,"box":{"x":70,"y":400,"width":816,"height":11}},{"id":"fd99e6b8-20fc-4199-ab5f-474dc38c7064","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":102,"box":{"x":68,"y":415,"width":799,"height":11}},{"id":"00555ba4-08bc-4157-8507-7dfc5e06e475","block_type":"box","text":"could adversely affect the Funds. The ultimate impact of these rules on the TOB market and the overall municipal","page_number":102,"box":{"x":69,"y":430,"width":807,"height":11}},{"id":"de1681bb-48d6-423a-a0c2-2b800f9dd75f","block_type":"box","text":"market is not yet cer tain.","page_number":102,"box":{"x":69,"y":446,"width":178,"height":10}},{"id":"4fe93308-2114-4d88-a13a-c2ca027860d6","block_type":"box","text":"Yields.","page_number":102,"box":{"x":103,"y":468,"width":45,"height":9}},{"id":"188ee827-644d-493f-a250-9fccc5ecc675","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":102,"box":{"x":154,"y":468,"width":730,"height":11}},{"id":"12d7bd28-464f-48ad-b149-7b5781410e14","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":102,"box":{"x":69,"y":483,"width":788,"height":11}},{"id":"c68d52a2-c44f-48a9-9c7c-e94db2cdc519","block_type":"box","text":"issuer, the maturity of the obligation and the rating of the issue. The ability of a Fund to achieve its investment","page_number":102,"box":{"x":70,"y":498,"width":787,"height":11}},{"id":"e22fa25a-50bf-4c83-83a4-0785dc590c95","block_type":"box","text":"objective is also dependent on the continuing ability of the issuers of the securities in which the Fund invests to meet","page_number":102,"box":{"x":69,"y":513,"width":838,"height":12}},{"id":"6ba703b7-2486-470d-a2c5-ae2cf03eecca","block_type":"box","text":"their obligations for the payment of interest and principal when due. There are variations in the risks involved in","page_number":102,"box":{"x":68,"y":528,"width":794,"height":12}},{"id":"6234fef6-2d02-44c3-a6dd-fcc09182198a","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":102,"box":{"x":69,"y":543,"width":831,"height":12}},{"id":"05ff40f6-45e4-4fab-be7e-293d8d5b8b9d","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":102,"box":{"x":68,"y":559,"width":806,"height":11}},{"id":"3a11aa63-2beb-4fc2-9fa0-bfcb18aeaa50","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":102,"box":{"x":70,"y":574,"width":823,"height":11}},{"id":"28a19dac-9ddb-4780-9923-d232b94edc39","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":102,"box":{"x":69,"y":589,"width":790,"height":11}},{"id":"6d5da150-02a0-4909-8894-666b811e8b7b","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":102,"box":{"x":103,"y":612,"width":323,"height":11}},{"id":"66ba4f53-c532-4587-8efe-5f19b8462031","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":102,"box":{"x":432,"y":612,"width":422,"height":11}},{"id":"a1ac6d99-aa3b-4d45-890e-8b5be33403ff","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":102,"box":{"x":68,"y":627,"width":830,"height":11}},{"id":"156d6a0d-5707-44f9-899d-cbb8e58cf4e2","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":102,"box":{"x":69,"y":642,"width":759,"height":11}},{"id":"115f85d8-b991-493d-9353-e9278ba80c8e","block_type":"box","text":"There is the possibility that because of default or insolvency the demand feature of VRDOs may not be honored.","page_number":102,"box":{"x":101,"y":664,"width":798,"height":12}},{"id":"2bdfd53a-0497-4fb2-9974-eaceb714c674","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":102,"box":{"x":68,"y":680,"width":815,"height":11}},{"id":"60fac4ee-94cc-451b-86dd-3ae0813e5cf8","block_type":"box","text":"adjustment formula being calculated to maintain the market rate of the VRDOs at approximately the par value of the","page_number":102,"box":{"x":69,"y":695,"width":826,"height":11}},{"id":"84e03778-f25a-4b8e-ac2b-71578eea2383","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":102,"box":{"x":68,"y":710,"width":791,"height":11}},{"id":"7821f589-302c-4b59-844a-11ec9fa9585d","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":102,"box":{"x":70,"y":725,"width":264,"height":11}},{"id":"ceecd251-6314-4e21-ae59-7ccbc4234a73","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":102,"box":{"x":102,"y":748,"width":791,"height":11}},{"id":"e56ce83c-6446-434c-a903-2fb5e574f402","block_type":"box","text":"During periods of declining interest rates, a Fund’s yield on a VRDO will decrease and its shareholders will forego the","page_number":102,"box":{"x":70,"y":763,"width":833,"height":11}},{"id":"5c1df32c-223b-4043-99d9-61b9ca0f01a0","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":102,"box":{"x":69,"y":778,"width":808,"height":11}},{"id":"90e1af0c-393a-402b-84b5-425263de90d1","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":102,"box":{"x":70,"y":793,"width":608,"height":11}},{"id":"3dbc7e5e-aaaf-471b-be09-ab015b7b4358","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":102,"box":{"x":103,"y":816,"width":465,"height":11}},{"id":"ab6671cc-0b80-4164-95d1-a44352f7397b","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":102,"box":{"x":574,"y":816,"width":318,"height":11}},{"id":"28d091b4-bf8b-4a6a-8230-6f50a61bcbb7","block_type":"box","text":"deal in financial futures contracts based on a long-term municipal bond index developed by the Chicago Board of","page_number":102,"box":{"x":69,"y":831,"width":803,"height":11}},{"id":"a800e20c-6fe8-4de8-a1ce-8c3ad8d43418","block_type":"box","text":"Trade (“CBT”) and The Bond Buyer (the “Municipal Bond Index”). The Municipal Bond Index is comprised of 40 long","page_number":102,"box":{"x":68,"y":846,"width":825,"height":11}},{"id":"77983eff-862e-4216-b74b-9c9c717fadba","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":102,"box":{"x":68,"y":861,"width":840,"height":11}},{"id":"25147ec9-a2e5-43ff-9033-dfafdb316835","block_type":"box","text":"Bond Index must be rated A or higher by Moody’s or S&P and must have a remaining maturity of 19 years or more.","page_number":102,"box":{"x":70,"y":876,"width":815,"height":11}},{"id":"9406337b-6d62-4305-affc-a39dc8c5fd59","block_type":"box","text":"Twice a month new issues satisfying the eligibility requirements are added to, and an equal number of old issues are","page_number":102,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"a63fd8d1-6be2-4fb1-b00a-30650ddbceab","block_type":"box","text":"II-62","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c60244b4-c060-4012-926e-05620d4deb77","block_type":"box","text":"NM1026U-5982643-102/241","page_number":102,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"56c39e0d-b538-4f08-a7e0-d76cca27b8a4","block_type":"box","text":"deleted from, the Municipal Bond Index. The value of the Municipal Bond Index is computed daily according to a","page_number":103,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"4b716533-d4f0-4eb4-958d-3bef61f43bc3","block_type":"box","text":"formula based on the price of each bond in the Municipal Bond Index, as evaluated by six dealer-to-dealer brokers.","page_number":103,"box":{"x":68,"y":60,"width":816,"height":11}},{"id":"4e9101bc-feaf-43a6-858e-044ad6ddc6e9","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":103,"box":{"x":101,"y":82,"width":756,"height":12}},{"id":"77e52553-e3cb-48ca-bf14-9596efe59800","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":103,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"b22ab414-7b11-4a54-a3de-659d136a52c0","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":103,"box":{"x":69,"y":113,"width":808,"height":11}},{"id":"52b53460-585b-4eb7-b128-e3b61d1a6767","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":103,"box":{"x":101,"y":135,"width":753,"height":12}},{"id":"b3fb88da-c59f-4c1a-8375-a7acba4c00c6","block_type":"box","text":"contract may vary from the bonds held by a Municipal Fund. As a result, a Municipal Fund’s ability to hedge","page_number":103,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"acb254ba-1d47-4aee-bc2c-582712789eea","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":103,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"16d99ac9-cf25-4f50-9ab6-6cd066d424d3","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":103,"box":{"x":69,"y":181,"width":774,"height":11}},{"id":"a59efe9a-7b9b-43db-b53d-94b63086dff4","block_type":"box","text":"correlate with the price movements of the Municipal Bonds held by the Fund. The correlation may be affected by","page_number":103,"box":{"x":69,"y":196,"width":801,"height":11}},{"id":"8034a1f0-83c2-4217-b66d-f5468f70ccba","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":103,"box":{"x":69,"y":211,"width":788,"height":11}},{"id":"69b0cca9-0937-4ffe-899e-e442a20b0561","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":103,"box":{"x":69,"y":226,"width":812,"height":11}},{"id":"a3dd9bf8-12a5-4f8b-a019-0dbef715a8d1","block_type":"box","text":"correlation between movements in the value of the Municipal Bond Index may be subject to change over time as","page_number":103,"box":{"x":69,"y":241,"width":799,"height":11}},{"id":"62c66bb8-b5fc-484e-8529-437e0cf32f55","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":103,"box":{"x":69,"y":256,"width":772,"height":11}},{"id":"939f4764-0138-4a52-9259-062c09165b75","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":103,"box":{"x":69,"y":272,"width":782,"height":11}},{"id":"25728981-e6a8-4cdb-8230-d44788f0e5e9","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":103,"box":{"x":69,"y":286,"width":806,"height":12}},{"id":"470a7b0b-e9a6-4d32-9d98-e70d0dc0008b","block_type":"box","text":"contracts and the prices of Municipal Bonds held by a Municipal Fund may be greater. Municipal Bond Index futures","page_number":103,"box":{"x":69,"y":302,"width":823,"height":11}},{"id":"dd4bfc40-3beb-423e-9b81-ff795dbce4ea","block_type":"box","text":"contracts were approved for trading in 1985. Trading in such futures contracts may tend to be less liquid than trading","page_number":103,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"7525353c-4990-4493-919d-9be113c810da","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":103,"box":{"x":70,"y":332,"width":839,"height":11}},{"id":"828fa87a-aadc-4ba2-8490-f3416308a84b","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":103,"box":{"x":68,"y":347,"width":693,"height":11}},{"id":"5ed9ae30-f6fc-4478-892b-be63453e5b20","block_type":"box","text":"Call Rights.","page_number":103,"box":{"x":102,"y":370,"width":79,"height":11}},{"id":"0536bd31-fbad-4d62-bff3-c0f0ceb12ded","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":103,"box":{"x":187,"y":370,"width":708,"height":11}},{"id":"da81486d-0826-449e-bd4d-83cdd86b331b","block_type":"box","text":"for mandatory tender for purchase (a “Call Right”). A holder of a Call Right may exercise such right to require a","page_number":103,"box":{"x":68,"y":385,"width":790,"height":11}},{"id":"677993a3-cfa2-4579-9b4e-4a566e31fe8d","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":103,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"d444f5b7-0ddd-405d-835d-98909251aca4","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":103,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"9edec3e3-746e-4e96-b627-7b4fc8aaf67f","block_type":"box","text":"both the Call Right and the related Municipal Bond is identical to holding a Municipal Bond as a non-callable security.","page_number":103,"box":{"x":69,"y":430,"width":833,"height":11}},{"id":"f936c25f-4c1c-4ee3-bc6f-fa7ad9d0e6a7","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":103,"box":{"x":69,"y":445,"width":393,"height":12}},{"id":"fe40f006-360e-4647-9047-332d8c53cd14","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":103,"box":{"x":102,"y":468,"width":307,"height":11}},{"id":"9f3f4a7d-20e8-4f5e-8535-e7bf5bd369fd","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":103,"box":{"x":417,"y":468,"width":411,"height":11}},{"id":"d31aaa4f-d8bc-4f6b-8a38-b23ea60586e4","block_type":"box","text":"fluctuations or to enhance a Fund’s income, a Fund may enter into interest rate swap transactions such as Municipal","page_number":103,"box":{"x":68,"y":483,"width":835,"height":11}},{"id":"28451073-37fb-4ce0-b4b0-52b996fe7aaa","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":103,"box":{"x":70,"y":498,"width":781,"height":11}},{"id":"681d04d8-fe2d-470a-b746-076a4ceb6e38","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":103,"box":{"x":70,"y":513,"width":808,"height":11}},{"id":"80bfe970-41c7-4de4-9957-5ab2ad69718b","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":103,"box":{"x":69,"y":528,"width":814,"height":12}},{"id":"0edd6044-8625-42bc-9e57-a4f58bb75e59","block_type":"box","text":"protect against any increase in the price of securities the Fund anticipates purchasing at a later date. A Fund intends","page_number":103,"box":{"x":70,"y":543,"width":832,"height":12}},{"id":"90469702-4665-4d2c-868f-e4dd846e3c03","block_type":"box","text":"to use these transactions primarily as a hedge rather than as a speculative investment. However, a Fund also may","page_number":103,"box":{"x":68,"y":559,"width":817,"height":11}},{"id":"6b61fe6b-a861-4d53-a7b3-eb76f9f7e8c1","block_type":"box","text":"invest in MMD Swaps and SIFMA Swaps to enhance income or gain or to increase the Fund’s yield, for example,","page_number":103,"box":{"x":70,"y":574,"width":797,"height":11}},{"id":"56cb357f-4968-4921-9326-107856b8b818","block_type":"box","text":"during periods of steep interest rate yield curves (i.e., wide differences between shor t-term and long-term interest","page_number":103,"box":{"x":69,"y":589,"width":813,"height":11}},{"id":"cce0b2bd-3ed7-4068-a509-020355a86cc1","block_type":"box","text":"rates).","page_number":103,"box":{"x":69,"y":604,"width":44,"height":11}},{"id":"a9bcb6a0-fb52-4151-8ed6-47f06ef0911a","block_type":"box","text":"A Fund may purchase and sell SIFMA Swaps in the SIFMA swap market. In a SIFMA Swap, a Fund exchanges with","page_number":103,"box":{"x":101,"y":627,"width":807,"height":11}},{"id":"d8c42a18-3edd-43f7-8593-f83161b8a359","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (e.g., an exchange of fixed rate payments for","page_number":103,"box":{"x":69,"y":642,"width":818,"height":11}},{"id":"f32a261f-a8ef-47fa-80df-6544bdd7e931","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":103,"box":{"x":68,"y":657,"width":798,"height":11}},{"id":"a53d7448-aa1f-420c-b218-cbb749899de7","block_type":"box","text":"index, SIFMA Swaps may reduce cross-market risks incurred by a Fund and increase a Fund’s ability to hedge","page_number":103,"box":{"x":70,"y":672,"width":778,"height":11}},{"id":"1dc7133c-e1cb-4365-a1e8-08b7d750027a","block_type":"box","text":"effectively. SIFMA Swaps are typically quoted for the entire yield curve, beginning with a seven day floating rate index","page_number":103,"box":{"x":69,"y":687,"width":833,"height":11}},{"id":"e4998998-b5b3-4d2e-bba3-837f305ab3c5","block_type":"box","text":"out to 30 years. The duration of a SIFMA Swap is approximately equal to the duration of a fixed-rate Municipal Bond","page_number":103,"box":{"x":69,"y":702,"width":823,"height":11}},{"id":"3f87914e-3e28-4251-86e6-2e6a1e3be837","block_type":"box","text":"with the same attributes as the swap (e.g., coupon, maturity, call feature).","page_number":103,"box":{"x":68,"y":717,"width":528,"height":12}},{"id":"f22d766c-c196-4d16-a6f6-3e485f58fd94","block_type":"box","text":"A Fund may also purchase and sell MMD Swaps, also known as MMD rate locks. An MMD Swap permits a Fund","page_number":103,"box":{"x":101,"y":740,"width":797,"height":11}},{"id":"0d6db7d7-e7d2-4136-8274-cf8009c31952","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":103,"box":{"x":68,"y":755,"width":770,"height":11}},{"id":"3b74d5e8-8e4b-4662-87dc-431139561696","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":103,"box":{"x":70,"y":770,"width":832,"height":12}},{"id":"65ab7bdb-74ac-4143-9232-e65a6563e943","block_type":"box","text":"price of securities to be purchased at a later date. By using an MMD Swap, a Fund can create a synthetic long or","page_number":103,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"61800a6b-0c69-461d-ab6a-8d70e83f1431","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":103,"box":{"x":69,"y":801,"width":808,"height":11}},{"id":"a7ad6b60-aafd-4b6f-ae68-24e73ad70709","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":103,"box":{"x":69,"y":816,"width":832,"height":11}},{"id":"a754bd77-1a63-4f66-a2de-657845750573","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":103,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"64f8a80b-33a8-4597-9f72-42c6bdecc110","block_type":"box","text":"below a specified level on the expiration date of the contract. For example, if a Fund buys an MMD Swap and the","page_number":103,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"7bce9240-11c0-4f78-b16f-856dbd659565","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":103,"box":{"x":70,"y":861,"width":763,"height":11}},{"id":"b6e169d3-c850-48bf-b02c-891005fbd56f","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":103,"box":{"x":69,"y":876,"width":797,"height":11}},{"id":"56b1a5e8-31b0-4a9c-a1b3-5a38d8f40f81","block_type":"box","text":"multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above","page_number":103,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"f2f3db0d-35ec-4657-8769-b1aea26915e3","block_type":"box","text":"II-63","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"05f98a4c-f08f-41fb-8490-175584ba02e4","block_type":"box","text":"NM1026U-5982643-103/241","page_number":103,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"d00e24c6-c182-4cc8-a47c-028400165e14","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":104,"box":{"x":68,"y":45,"width":816,"height":11}},{"id":"d1f1f596-4533-494c-aafe-a49c2e9d4b1d","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":104,"box":{"x":69,"y":60,"width":537,"height":11}},{"id":"27b9306a-76b6-46f4-bffb-e8059182eb8f","block_type":"box","text":"In connection with investments in SIFMA and MMD Swaps, there is a risk that municipal yields will move in the","page_number":104,"box":{"x":102,"y":83,"width":788,"height":11}},{"id":"672f7c69-2dc9-449f-80df-1ec310bdc265","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":104,"box":{"x":69,"y":98,"width":821,"height":11}},{"id":"62cdcbf7-d428-4f1c-8b83-508c36c95bc9","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":104,"box":{"x":68,"y":113,"width":482,"height":11}},{"id":"55a0a14e-6b07-4b3a-9dde-00e930745ec8","block_type":"box","text":"Insured Municipal Bonds.","page_number":104,"box":{"x":102,"y":136,"width":179,"height":10}},{"id":"1d0c3af2-8136-40e5-832d-c346fba94427","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":104,"box":{"x":288,"y":136,"width":619,"height":11}},{"id":"8cdd28d3-05a7-4dbc-9b7b-863092e7b64d","block_type":"box","text":"payments on the bond will be made on time and the principal will be repaid when the bond matures. Either the issuer","page_number":104,"box":{"x":70,"y":151,"width":835,"height":11}},{"id":"1f863e2b-29c8-4ff5-8038-7db62d591da0","block_type":"box","text":"of the bond or the Fund purchases the insurance. Insurance is expected to protect the Fund against losses caused by","page_number":104,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"0bca2e03-8e2e-4378-bda9-cc58f0ac4cd3","block_type":"box","text":"a bond issuer’s failure to make interest or principal payments. However, insurance does not protect the Fund or its","page_number":104,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"f019d298-acb6-4908-bf2e-7e22209316b9","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":104,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"b4123421-0c4a-4547-9e01-cc5772ab6501","block_type":"box","text":"insurance company does not make these payments. In addition, if the Fund purchases the insurance, it may pay the","page_number":104,"box":{"x":70,"y":211,"width":827,"height":11}},{"id":"fa347267-f904-4735-bc24-788ca1d55ad4","block_type":"box","text":"premiums, which will reduce the Fund’s yield. The Fund seeks to use only insurance companies with claims paying","page_number":104,"box":{"x":70,"y":226,"width":815,"height":11}},{"id":"b6cf9057-6948-4c88-b1a1-cd6c2cf5586e","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":104,"box":{"x":69,"y":241,"width":829,"height":11}},{"id":"9eacf037-d1ca-4190-a6cd-c8aeca8aedb0","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":104,"box":{"x":68,"y":257,"width":767,"height":11}},{"id":"bd03077d-a29b-4514-8b98-455b5f714734","block_type":"box","text":"insurance or insured bonds. If a bond’s insurer fails to fulfill its obligations or loses its credit rating, the value of the","page_number":104,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"efd49311-09ae-4e16-b318-aae18bbade7a","block_type":"box","text":"bond could drop.","page_number":104,"box":{"x":69,"y":287,"width":118,"height":10}},{"id":"fd1de9b7-a19e-4707-8165-e01a37176666","block_type":"box","text":"Build America Bonds.","page_number":104,"box":{"x":102,"y":309,"width":150,"height":9}},{"id":"95a1842a-94e4-479e-93ce-89a8f9d58d25","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":104,"box":{"x":259,"y":309,"width":616,"height":11}},{"id":"f7da81ae-0921-4c37-80b8-2c3d800dca15","block_type":"box","text":"income tax credit; however, the issuer of a Build America Bond may instead elect to receive a cash payment directly","page_number":104,"box":{"x":70,"y":324,"width":825,"height":11}},{"id":"187757d1-e17b-459d-aff5-65ebeaa76a4f","block_type":"box","text":"from the federal government in lieu of holders such as the fund receiving a tax credit. The interest on Build America","page_number":104,"box":{"x":68,"y":339,"width":824,"height":12}},{"id":"a912c450-7592-4452-a36d-fac10b45f143","block_type":"box","text":"Bonds is taxable for U.S. federal income tax purposes. If the Fund does receive tax credits from Build America Bonds","page_number":104,"box":{"x":70,"y":355,"width":833,"height":11}},{"id":"bf9608a9-bc41-46ad-a90a-10441919f4a6","block_type":"box","text":"or other tax credit bonds on one or more specified dates during the fund’s taxable year, and the Fund satisfies the","page_number":104,"box":{"x":69,"y":370,"width":815,"height":11}},{"id":"23a85234-028a-4f1f-8e45-a0b1a97f11cd","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":104,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"07a4327f-8d69-4a46-964e-ca5ed3df9c2d","block_type":"box","text":"shareholders tax credits otherwise allowable to the Fund for that year with respect to such bonds. A tax credit bond","page_number":104,"box":{"x":69,"y":400,"width":823,"height":11}},{"id":"8ff296c9-1725-457b-86ae-290513c5fa01","block_type":"box","text":"is defined in the Code as a “qualified tax credit bond” (which includes a qualified forestry conservation bond, a new","page_number":104,"box":{"x":70,"y":415,"width":825,"height":11}},{"id":"d8cf0716-c440-4c71-81cb-6cd5d622c460","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":104,"box":{"x":69,"y":430,"width":837,"height":11}},{"id":"58686668-33a5-42b1-a192-f74eb7448844","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":104,"box":{"x":69,"y":445,"width":802,"height":11}},{"id":"a50e165c-89c4-4fe2-87a4-c12fafc73715","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":104,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"3c92128b-322f-4e23-89f6-c50b06f875ec","block_type":"box","text":"would be required to include in income and would be entitled to claim as a tax credit an amount equal to a","page_number":104,"box":{"x":68,"y":476,"width":760,"height":10}},{"id":"4b250cfa-6a5d-4b04-9645-b40b79a050e1","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":104,"box":{"x":70,"y":491,"width":782,"height":11}},{"id":"d8ff7b2e-c385-499b-887e-952b85fb46d7","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":104,"box":{"x":69,"y":506,"width":563,"height":11}},{"id":"b1a0467b-8145-4ea8-9900-a15f6598b6a5","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":104,"box":{"x":103,"y":529,"width":246,"height":10}},{"id":"6b1c3ea9-c2ab-4b00-aaa3-52c729aa10cd","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":104,"box":{"x":355,"y":529,"width":534,"height":11}},{"id":"73dc6335-6002-4cb5-8957-71a05bb29b4f","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":104,"box":{"x":68,"y":543,"width":798,"height":12}},{"id":"0eb99a1d-e4f6-4564-a67d-0f0853cfb2a0","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":104,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"90c50060-c0eb-4997-b94f-6c4f92d4fbb1","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":104,"box":{"x":69,"y":574,"width":830,"height":11}},{"id":"a7967553-181a-46c6-9a87-b441a200043d","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":104,"box":{"x":68,"y":589,"width":832,"height":11}},{"id":"ddaaa364-430f-483e-857e-0c4f0cb31370","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":104,"box":{"x":70,"y":604,"width":819,"height":11}},{"id":"9be63a16-d273-4065-a0be-4158406a5e14","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":104,"box":{"x":69,"y":619,"width":752,"height":11}},{"id":"6bcbe7d0-045c-4da1-858c-4cba15d43ee4","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":104,"box":{"x":102,"y":642,"width":770,"height":11}},{"id":"7e841d6f-4650-495f-8a0b-9fb9e755e7a3","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":104,"box":{"x":69,"y":657,"width":806,"height":11}},{"id":"d8ffd06f-cf4b-4368-9c35-aa75cee3d150","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":104,"box":{"x":70,"y":672,"width":809,"height":11}},{"id":"85cee62e-4ded-403e-ae50-ce29818c9104","block_type":"box","text":"their face value to the sponsor (e.g., a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":104,"box":{"x":68,"y":687,"width":814,"height":11}},{"id":"93e352a3-f48d-4c75-a61b-d6989afd3ebc","block_type":"box","text":"periodic fees equal to the difference between the securities’ fixed coupon rate and the rate that would cause the","page_number":104,"box":{"x":70,"y":702,"width":803,"height":11}},{"id":"3ccfa60c-df52-45d2-920f-e2e24de44bc7","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":104,"box":{"x":69,"y":717,"width":648,"height":12}},{"id":"4cab4541-79ac-4a36-938f-6923a2ead086","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":104,"box":{"x":101,"y":740,"width":775,"height":11}},{"id":"a7b44229-0163-4cf1-929c-333e58c6d8b0","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":104,"box":{"x":70,"y":755,"width":785,"height":11}},{"id":"99c5786e-ce90-48c5-a039-2c7b763d583f","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":104,"box":{"x":68,"y":770,"width":821,"height":11}},{"id":"e09357a7-68da-436e-8e9a-9ba63438cba3","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":104,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"8fb46c7d-808a-44d0-9add-9a795d160229","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":104,"box":{"x":70,"y":801,"width":351,"height":11}},{"id":"43113943-af9b-467f-8358-7a8264f45a04","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":104,"box":{"x":101,"y":823,"width":797,"height":12}},{"id":"4622b530-f8a2-4673-bb02-25d9eb31a6ed","block_type":"box","text":"which give the holder the right to receive payment of principal subject to the conditions described above. The IRS has","page_number":104,"box":{"x":68,"y":838,"width":836,"height":12}},{"id":"5cf29246-10ba-4868-b533-781dd18d2da2","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":104,"box":{"x":69,"y":853,"width":831,"height":11}},{"id":"9bb0fbc9-bcfb-4e3c-bed2-bc5191683478","block_type":"box","text":"or custodial receipts is tax-exempt, and accordingly, purchases of any such interests or receipts are based on the","page_number":104,"box":{"x":69,"y":869,"width":809,"height":11}},{"id":"c664939d-62ad-4b90-9bb1-30fa310d7799","block_type":"box","text":"II-64","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"15058d1f-6a9b-40c7-9b58-42d29276c7f6","block_type":"box","text":"NM1026U-5982643-104/241","page_number":104,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"0c1dab5b-0c2c-48a1-97ac-929b5d36198a","block_type":"box","text":"opinions of counsel to the sponsors of such derivative securities. Neither a Fund nor its investment adviser or sub","page_number":105,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"10e20ce6-bfcd-47b6-a32f-7d2f1f457522","block_type":"box","text":"advisers will review the proceedings related to the creation of any tax-exempt municipal investments or the basis for","page_number":105,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"146eee37-f7cd-45f0-806d-ae3a524ed9b8","block_type":"box","text":"such opinions.","page_number":105,"box":{"x":69,"y":75,"width":102,"height":11}},{"id":"7d5ac49d-1f0d-4274-aaf4-16537c07cfd5","block_type":"box","text":"Operational and Technology Risks","page_number":105,"box":{"x":102,"y":98,"width":247,"height":11}},{"id":"eebb990b-8085-48f8-8077-4d930f408683","block_type":"box","text":"— The Fund and the entities with which it interacts directly or indirectly are","page_number":105,"box":{"x":353,"y":98,"width":533,"height":11}},{"id":"218a5b42-43b1-4454-8f93-be0dce182cd2","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":105,"box":{"x":69,"y":113,"width":766,"height":11}},{"id":"7f9195ce-be1c-44cb-8cde-d325eddf3c70","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":105,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"31e7aeea-af9e-4615-9d5f-8eb88063cafd","block_type":"box","text":"learning (“AI”), which may result in losses for the Fund and its shareholders or impair the Fund’s operations. These","page_number":105,"box":{"x":70,"y":143,"width":820,"height":11}},{"id":"b5440dda-cc80-4429-8c71-9b828d279739","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":105,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"37a2e394-7011-445b-bd9a-bc43cb557563","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":105,"box":{"x":70,"y":173,"width":741,"height":11}},{"id":"3d166d5f-e8a1-41bd-acd0-eab05f768c14","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":105,"box":{"x":69,"y":188,"width":802,"height":12}},{"id":"bd7c7a87-ac1d-4e03-9549-e56a26aefdd3","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":105,"box":{"x":68,"y":203,"width":818,"height":12}},{"id":"2b7a5144-ce5c-4312-9870-186f0bd921b6","block_type":"box","text":"could also result in material adverse consequences for such issuers and may cause the Fund’s investments in such","page_number":105,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"cb14c5f9-45f7-4d48-bb20-fc35201a9468","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":105,"box":{"x":70,"y":234,"width":803,"height":11}},{"id":"df5dc925-55cf-4884-992b-f2c270c75ba1","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":105,"box":{"x":102,"y":256,"width":796,"height":12}},{"id":"6e6892a7-74ca-4702-8507-dca931666101","block_type":"box","text":"Fund invests, the Fund or any of its service providers. They include, but are not limited to, gaining unauthorized","page_number":105,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"c7d30f9a-14c7-4e19-852d-34a65851b2c1","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":105,"box":{"x":69,"y":286,"width":800,"height":12}},{"id":"76f6499a-bd0e-4954-b4c4-88d5864b4768","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":105,"box":{"x":69,"y":302,"width":768,"height":11}},{"id":"4cce8a45-f331-444e-8d70-8928cf9462ae","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":105,"box":{"x":70,"y":317,"width":827,"height":11}},{"id":"3a71121f-c280-45a1-8dd4-dd7a73180b39","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":105,"box":{"x":69,"y":332,"width":760,"height":11}},{"id":"95730e20-fa99-4954-a60e-ef4b1f34ecb6","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":105,"box":{"x":69,"y":347,"width":763,"height":11}},{"id":"23ab2881-1f6a-4b25-a1a8-caa95db41d40","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":105,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"9f557cf4-ac63-4b51-89ea-c258026aaa1b","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":105,"box":{"x":69,"y":377,"width":766,"height":12}},{"id":"f719a997-e147-465c-985b-7f5407d44a56","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":105,"box":{"x":69,"y":393,"width":804,"height":11}},{"id":"4dffbd9f-0535-4aeb-a7db-12faf6cf4528","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":105,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"5c4ce2c1-97db-41c3-b4f6-2ece3e278017","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":105,"box":{"x":69,"y":423,"width":800,"height":11}},{"id":"d3802550-cf92-4940-a140-a46364c9840d","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":105,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"d4a376f9-804f-498a-a13f-562ac9b67eaa","block_type":"box","text":"upon by the Fund or its service providers, as well as market events that occur at a pace that overloads these","page_number":105,"box":{"x":69,"y":453,"width":777,"height":11}},{"id":"7700b2ab-8585-4a7e-b298-edcb74f0bf08","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":105,"box":{"x":69,"y":468,"width":824,"height":11}},{"id":"96cc89a2-3e9f-46bc-a9dd-2ed6f861193a","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":105,"box":{"x":68,"y":483,"width":836,"height":11}},{"id":"dffdbb9b-fee9-470e-a3ad-18f66b4f6c28","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":105,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"a9069f5a-cb1b-45e6-ac85-e9a762958be1","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":105,"box":{"x":68,"y":513,"width":793,"height":12}},{"id":"490de561-562e-42f9-9452-14f41be94bfd","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":105,"box":{"x":69,"y":528,"width":822,"height":11}},{"id":"22442aef-f8bb-46d8-8d6c-054397bc74c5","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":105,"box":{"x":68,"y":543,"width":787,"height":12}},{"id":"2d769f33-461c-4d50-8007-d9f8bd2e5dde","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":105,"box":{"x":69,"y":559,"width":742,"height":11}},{"id":"3a192a18-3394-4187-8570-f273f9ec5b9b","block_type":"box","text":"infrastructure assets.","page_number":105,"box":{"x":70,"y":574,"width":151,"height":9}},{"id":"b79f7ce7-b6f3-4f51-a7a3-b0a72f8597b4","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":105,"box":{"x":101,"y":596,"width":755,"height":12}},{"id":"3fc64967-28c6-466a-aa8a-27ffc68729a6","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":105,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"2e965a93-d60c-416a-bf9c-5c3cdd208913","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":105,"box":{"x":68,"y":627,"width":833,"height":11}},{"id":"222dd829-2acf-49b6-bf3f-7768d8ba3f3e","block_type":"box","text":"or services.","page_number":105,"box":{"x":69,"y":642,"width":82,"height":9}},{"id":"8878997c-346d-4bdd-b8d4-f44d670b435d","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":105,"box":{"x":102,"y":664,"width":781,"height":12}},{"id":"d74dab64-7331-47c6-acb2-369cb4059198","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":105,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"1adf11d4-bcf1-4a23-a76d-7579f2848922","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":105,"box":{"x":69,"y":695,"width":383,"height":11}},{"id":"4b76af69-f3e2-483e-bbfd-95b88108bd13","block_type":"box","text":"Independent of its context of use, AI technology is generally highly reliant on the collection and analysis of large","page_number":105,"box":{"x":102,"y":717,"width":795,"height":12}},{"id":"406b693a-afde-482c-845a-ff01ab3f7370","block_type":"box","text":"amounts of data, may incorporate biased or inaccurate data, and it is not possible or practicable to incorporate all","page_number":105,"box":{"x":69,"y":732,"width":813,"height":12}},{"id":"240c71d2-0ed0-48b3-8e20-5336c5981227","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":105,"box":{"x":69,"y":748,"width":785,"height":11}},{"id":"3e5db2d6-90a2-4711-a8a9-c22508484ad8","block_type":"box","text":"contain a degree of inaccuracy and error, or could otherwise be inadequate or flawed, which would be likely to","page_number":105,"box":{"x":69,"y":763,"width":782,"height":11}},{"id":"0a5fcc5a-2a10-492e-b5fb-d1fa4dba1243","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":105,"box":{"x":69,"y":778,"width":787,"height":11}},{"id":"39a99c51-cead-491d-bba7-ef8e0134d8b7","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":105,"box":{"x":70,"y":793,"width":809,"height":11}},{"id":"192655f1-9a67-4edc-bfc0-a907a87c6e8d","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":105,"box":{"x":69,"y":808,"width":805,"height":11}},{"id":"6f046534-56ae-4e07-a213-ffaf7ba2c2fd","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":105,"box":{"x":70,"y":823,"width":822,"height":11}},{"id":"4b6e3552-902e-4a46-8193-6570d19e7b34","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":105,"box":{"x":68,"y":839,"width":789,"height":11}},{"id":"77c07568-7610-4f0b-883a-3fd353d1a727","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":105,"box":{"x":102,"y":861,"width":786,"height":11}},{"id":"8f06c380-d52c-4d52-8aba-1a8933f176e9","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":105,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"b048e7fa-f18e-45eb-940f-c6f2d2199494","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":105,"box":{"x":70,"y":891,"width":796,"height":11}},{"id":"79abc182-7a9b-4f7a-bfdb-62affe79043a","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":105,"box":{"x":69,"y":906,"width":788,"height":12}},{"id":"8cf42b57-43fe-498b-8e94-ee0a034a94eb","block_type":"box","text":"II-65","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2e1818d6-0a1d-4313-b230-ac2d5898289e","block_type":"box","text":"NM1026U-5982643-105/241","page_number":105,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f481706e-dcf2-4d37-8e33-371bcfd60e7f","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":106,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"1c70b609-8862-4c87-9c2d-cc14daf654d9","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":106,"box":{"x":68,"y":60,"width":773,"height":11}},{"id":"75f95d5b-914e-4a0a-97e1-b2b1ed177d1d","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":106,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"e29117fd-152e-4736-8916-b55ad7e54365","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":106,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"3df58020-0d56-4514-a104-2ece4175d18b","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":106,"box":{"x":69,"y":105,"width":412,"height":11}},{"id":"c13f4974-8887-47c8-af2f-0eba6b1503d3","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":106,"box":{"x":101,"y":128,"width":797,"height":11}},{"id":"a3eb12da-b1a0-4b04-9aab-18c621af4650","block_type":"box","text":"and it is impossible to predict the future risks that may arise from such developments. The full extent of current or","page_number":106,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"19f58e40-a102-4cb2-a87b-1da728a20289","block_type":"box","text":"future risks related thereto is not possible to predict, and the Fund may not be able to anticipate, prevent, mitigate,","page_number":106,"box":{"x":68,"y":158,"width":824,"height":11}},{"id":"e9b83616-6865-4958-b74d-1928a4a4eb63","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":106,"box":{"x":69,"y":173,"width":561,"height":11}},{"id":"b46d1122-eae3-4745-8a22-e6ef2a4dda96","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":106,"box":{"x":101,"y":196,"width":747,"height":11}},{"id":"ca84e8a2-5e20-477d-a114-fc048e2bee86","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":106,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"39a1e653-5684-4ee6-bee0-35e2f42319d5","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":106,"box":{"x":68,"y":226,"width":823,"height":11}},{"id":"9b8965e5-0560-470d-b238-2bf67b837c79","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":106,"box":{"x":68,"y":241,"width":755,"height":11}},{"id":"9cef9f83-2bb8-403c-925c-7a61fc16a859","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":106,"box":{"x":69,"y":257,"width":838,"height":11}},{"id":"d6a1ebed-b169-476c-bdd3-3440dd844a12","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":106,"box":{"x":70,"y":271,"width":812,"height":12}},{"id":"003d84d3-4fa6-4871-92e9-4d85ed0486f0","block_type":"box","text":"may emerge in the future; that such plans and systems may not completely eliminate the occurrence or mitigate the","page_number":106,"box":{"x":69,"y":286,"width":828,"height":12}},{"id":"db44beba-63bc-4c48-9c22-fbd04bb7d138","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":106,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"7cde882a-1514-4666-853a-073ac33ba2d5","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":106,"box":{"x":69,"y":317,"width":792,"height":11}},{"id":"0427fb48-38f5-4fcd-a901-519629d2cc46","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":106,"box":{"x":69,"y":332,"width":775,"height":11}},{"id":"30e28709-2525-4f30-b0c1-1c55c4c53508","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":106,"box":{"x":69,"y":347,"width":510,"height":11}},{"id":"d51982be-a346-49e6-84bc-fee7efb14042","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":106,"box":{"x":102,"y":370,"width":771,"height":11}},{"id":"638827ff-a0f3-4b93-a7e9-a7a39902e7dc","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":106,"box":{"x":69,"y":385,"width":816,"height":11}},{"id":"10505891-7c00-4b1a-981f-8d00482bd766","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":106,"box":{"x":69,"y":400,"width":778,"height":11}},{"id":"30daa5db-e6c8-4292-9636-91d55a97ed8a","block_type":"box","text":"resources to monitor and implement required changes.","page_number":106,"box":{"x":69,"y":415,"width":391,"height":11}},{"id":"d8d1f361-bbe4-47d0-9765-d6e21d7bbb6c","block_type":"box","text":"Participation Notes.","page_number":106,"box":{"x":102,"y":438,"width":145,"height":11}},{"id":"66ac3676-a273-44be-a76d-c28a63d053e8","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":106,"box":{"x":253,"y":438,"width":641,"height":11}},{"id":"100ddac8-87ce-47f4-a8b9-7e3c4c1ce5eb","block_type":"box","text":"Fund to a return measured by the change in value of an identified underlying security or basket of securities","page_number":106,"box":{"x":70,"y":453,"width":766,"height":11}},{"id":"6b29d0a6-ed1c-4d07-aaa8-96b33389422d","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":106,"box":{"x":69,"y":468,"width":772,"height":11}},{"id":"b19cff6a-8d73-46f8-998f-83a603261980","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":106,"box":{"x":69,"y":483,"width":475,"height":11}},{"id":"11c5cad4-5814-47a5-abcb-b5a2af138f9b","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":106,"box":{"x":101,"y":506,"width":782,"height":11}},{"id":"6779bbc4-0660-41c8-890e-23f6cc354eb7","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":106,"box":{"x":68,"y":521,"width":831,"height":11}},{"id":"ff8ddcd7-4235-418d-ba25-a06a24ea6bed","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":106,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"b2e77b86-c670-4c52-8645-1d022a8f4aae","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":106,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"85dca448-d1a7-47dc-8c72-8b141eb177cd","block_type":"box","text":"security. In other words, shares of the underlying security are not in any way owned by the Fund. However each","page_number":106,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"e5c94f59-8e47-4100-8ea7-d325eda48f31","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":106,"box":{"x":70,"y":581,"width":827,"height":12}},{"id":"c06b1787-fa9b-4b2d-8d90-ab5b3aaee13b","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":106,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"0cc6d056-88a2-4ef8-b436-4b3720ef89a1","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":106,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"522fdf59-b550-4762-a2af-140075f679e9","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":106,"box":{"x":69,"y":627,"width":801,"height":11}},{"id":"8d5fdcf5-9e69-4720-a243-33c4839aede1","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":106,"box":{"x":101,"y":649,"width":743,"height":12}},{"id":"ec7a3fb8-4106-4cf8-89c2-076021504485","block_type":"box","text":"obligation. A Fund may, but is not required to, purchase credit protection against the default of the issuer. When the","page_number":106,"box":{"x":69,"y":664,"width":826,"height":12}},{"id":"556e0cc7-4b48-4410-b580-1c3606d4bfdd","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":106,"box":{"x":70,"y":680,"width":799,"height":11}},{"id":"b592cdc5-e586-4a62-a969-25c628a8430b","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":106,"box":{"x":70,"y":695,"width":776,"height":11}},{"id":"145385de-8597-4c05-bb55-d0f2e2ebd68d","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":106,"box":{"x":68,"y":710,"width":834,"height":11}},{"id":"cf2f8515-354e-47e1-84b5-b5de85937e58","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":106,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"cd4b9126-bd88-497a-8a11-6f66160769ca","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":106,"box":{"x":68,"y":740,"width":454,"height":11}},{"id":"5caeec73-ff75-4f21-ae1a-411ca30c1df1","block_type":"box","text":"Portfolio Turnover Rates.","page_number":106,"box":{"x":102,"y":763,"width":181,"height":9}},{"id":"22d1fb25-8d9c-42b1-9fb9-b516b2f422e3","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":106,"box":{"x":289,"y":763,"width":558,"height":11}},{"id":"5b7f10e4-3897-45c4-9408-fa0420749e13","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":106,"box":{"x":70,"y":778,"width":804,"height":11}},{"id":"96bcec16-a956-4908-b60d-cbe0b8630a73","block_type":"box","text":"Funds will use an approach to investing that is largely a passive, indexing approach, such Funds may engage in a","page_number":106,"box":{"x":70,"y":793,"width":806,"height":11}},{"id":"53839b60-2a37-4e5d-a455-6d54a721fc1b","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":106,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"12fe84cf-3877-4a2c-bf9e-72380d86ae5b","block_type":"box","text":"limiting factor when the Manager considers whether to purchase or sell securities for a Fund only to the extent that","page_number":106,"box":{"x":70,"y":823,"width":818,"height":12}},{"id":"b1a96dac-16f8-4a70-a158-3c628fe4527e","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":106,"box":{"x":68,"y":838,"width":800,"height":12}},{"id":"2e34d760-fcb2-44a2-aee3-c26f722561ac","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (i.e., 100% or more) may result in","page_number":106,"box":{"x":68,"y":853,"width":829,"height":12}},{"id":"f4eeb13b-4b5b-4f86-864a-dd7385659a05","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":106,"box":{"x":70,"y":869,"width":797,"height":11}},{"id":"cf90fe6b-2b0f-4047-9464-c12197f0be7e","block_type":"box","text":"costs on the sale of the securities and reinvestment in other securities. The sale of a Fund’s securities may result in","page_number":106,"box":{"x":69,"y":884,"width":832,"height":11}},{"id":"4f9fec3c-2861-43f8-8d78-fe85152f2a69","block_type":"box","text":"II-66","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bcac57e0-361a-4e1c-841e-0e3216815d6e","block_type":"box","text":"NM1026U-5982643-106/241","page_number":106,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"d500164d-701f-4442-94bd-1e93afecc346","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":107,"box":{"x":68,"y":45,"width":831,"height":11}},{"id":"d8aa935e-fcdb-4962-8829-3301d47b972f","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":107,"box":{"x":68,"y":60,"width":795,"height":11}},{"id":"593df9ac-e6bd-4f64-bc0c-23d7433dbf28","block_type":"box","text":"Preferred Stock.","page_number":107,"box":{"x":102,"y":82,"width":118,"height":9}},{"id":"2ce2e675-0670-48e3-81dd-0e4d81c43696","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":107,"box":{"x":226,"y":82,"width":665,"height":12}},{"id":"33c61795-c2b0-4a58-a2ce-7d0b817e271e","block_type":"box","text":"stock in liquidation (and generally dividends as well) but is subordinated to bond holders and other creditors in all","page_number":107,"box":{"x":69,"y":98,"width":808,"height":11}},{"id":"f421cb49-9316-4c2e-aa42-e0ad0df0cfc2","block_type":"box","text":"respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element","page_number":107,"box":{"x":69,"y":113,"width":834,"height":11}},{"id":"fd71b868-cd80-4952-a97a-e6453d0c5884","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":107,"box":{"x":68,"y":128,"width":808,"height":11}},{"id":"83fa35e6-1951-4f98-97d2-64bb8628343e","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":107,"box":{"x":68,"y":143,"width":813,"height":11}},{"id":"060a1b8e-d626-4e42-9723-d272afb73ee9","block_type":"box","text":"other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value","page_number":107,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"45b965bb-3c19-4917-8ca9-090c0eff59a5","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":107,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"fedea42a-524c-4bf2-84e4-4808777d7199","block_type":"box","text":"payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors.","page_number":107,"box":{"x":70,"y":188,"width":838,"height":11}},{"id":"017944f3-0ed6-4499-a4d3-1d504a105691","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":107,"box":{"x":69,"y":203,"width":604,"height":12}},{"id":"c58aea3f-1d89-4337-b503-2301838eb67c","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":107,"box":{"x":103,"y":226,"width":207,"height":11}},{"id":"f01ee5ab-3a85-4ce4-aa10-a4d4e1ea475a","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":107,"box":{"x":316,"y":226,"width":588,"height":11}},{"id":"2390aecc-1d95-4fa3-9418-1e5ddffa2357","block_type":"box","text":"dividends that are exempt from regular U.S. federal income tax. Such funds in turn invest in municipal bonds and","page_number":107,"box":{"x":69,"y":241,"width":806,"height":11}},{"id":"1363226a-1e32-450a-a585-86abe2dbc913","block_type":"box","text":"other assets that pay interest or make distributions that are exempt from regular U.S. federal income tax, such as","page_number":107,"box":{"x":69,"y":256,"width":814,"height":12}},{"id":"9890c4cc-d43c-4cf9-b31b-7757c71935c7","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":107,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"9e19b62b-4d5c-44b2-941b-1d840a7d78c5","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":107,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"73d87a83-6953-4f55-a677-c1877ca30291","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":107,"box":{"x":69,"y":302,"width":772,"height":11}},{"id":"88a37f64-5841-41a0-895a-1d8391fe3590","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":107,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"7ae8422b-e4a2-4a01-9f89-2135b1f284cb","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":107,"box":{"x":69,"y":332,"width":834,"height":11}},{"id":"5f8412b5-59af-4393-bed3-863e17227aac","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":107,"box":{"x":70,"y":347,"width":474,"height":11}},{"id":"bfe2d765-3fae-4c86-bfa1-3d4d547da8de","block_type":"box","text":"Trust Preferred Securities.","page_number":107,"box":{"x":103,"y":370,"width":184,"height":9}},{"id":"62c7918c-f7f0-472b-860f-3f6fa6679180","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":107,"box":{"x":294,"y":370,"width":599,"height":11}},{"id":"c8f5f868-816f-4715-8225-faa5733fe6de","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":107,"box":{"x":68,"y":385,"width":737,"height":11}},{"id":"d981f91e-8393-4938-adf6-4fcf051fe5eb","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":107,"box":{"x":69,"y":400,"width":796,"height":11}},{"id":"3b9c11a9-93ab-4e5b-9752-a1aec3de2152","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":107,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"a921aa3c-2d43-48d0-8dcc-d87c5e1901e8","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":107,"box":{"x":68,"y":430,"width":773,"height":11}},{"id":"53d236e5-7fd4-40c7-9460-57e2632253b9","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":107,"box":{"x":101,"y":453,"width":770,"height":11}},{"id":"5e134473-c76a-497c-84a4-f8b600242551","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":107,"box":{"x":68,"y":468,"width":801,"height":11}},{"id":"b318472a-933c-493a-b59a-0f4dadb83329","block_type":"box","text":"securities typically permit an issuer to defer the payment of income for five years or more without triggering an event","page_number":107,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"79ae1cf2-4e81-4997-8efc-bf3ef0a83f20","block_type":"box","text":"of default. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments","page_number":107,"box":{"x":69,"y":498,"width":822,"height":11}},{"id":"36e4c29a-ed27-4904-bdfd-b3917b14bcaa","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":107,"box":{"x":68,"y":513,"width":777,"height":11}},{"id":"f28997ae-0c96-4bdb-897e-ac6a5dd62f9d","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":107,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"1a3f835d-13ce-4d20-b07e-eb6c306cb593","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":107,"box":{"x":68,"y":543,"width":757,"height":12}},{"id":"3c47c48c-9315-4200-a9fd-6e2c55c3238e","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":107,"box":{"x":69,"y":559,"width":548,"height":11}},{"id":"e7cdccf3-c96b-4c23-9938-a63ec951d6db","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":107,"box":{"x":101,"y":581,"width":715,"height":12}},{"id":"c0699a0a-7d3c-45e7-b572-8adf5a72df98","block_type":"box","text":"®","page_number":107,"box":{"x":817,"y":582,"width":5,"height":4}},{"id":"0af819bb-0ae4-4cc3-9940-d94fd44af798","block_type":"box","text":"”); monthly","page_number":107,"box":{"x":824,"y":582,"width":77,"height":10}},{"id":"8a31b7ac-5f5e-4fb0-9938-d8697dbecea8","block_type":"box","text":"income preferred securities (“MIPS","page_number":107,"box":{"x":70,"y":596,"width":248,"height":11}},{"id":"3d08c9d0-7d9d-4f2e-812f-e7f2afeb89cb","block_type":"box","text":"®","page_number":107,"box":{"x":319,"y":597,"width":6,"height":4}},{"id":"8c74a98d-9719-4c0c-814f-7414dabedc02","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":107,"box":{"x":326,"y":597,"width":317,"height":11}},{"id":"089b5a86-655e-4172-b69c-6ac42fbc9589","block_type":"box","text":"®","page_number":107,"box":{"x":644,"y":597,"width":6,"height":4}},{"id":"46c02cc2-925f-446e-b17f-8de264067eb7","block_type":"box","text":"” ); quar terly income debt securities","page_number":107,"box":{"x":652,"y":597,"width":255,"height":11}},{"id":"90a57569-e83b-400c-93b0-0c57689e2335","block_type":"box","text":"(“QUIDS","page_number":107,"box":{"x":69,"y":612,"width":57,"height":11}},{"id":"b91d94c9-1698-487e-8a6c-433ea9a63f8e","block_type":"box","text":"®","page_number":107,"box":{"x":127,"y":612,"width":6,"height":4}},{"id":"66476f8f-f9af-4d5f-aab9-852b23c1c46e","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":107,"box":{"x":135,"y":612,"width":346,"height":11}},{"id":"3dcd0757-b431-4dc4-99e4-35e81ac3e96a","block_type":"box","text":"SM","page_number":107,"box":{"x":482,"y":612,"width":11,"height":4}},{"id":"3c34e015-8a55-47d3-8376-1307da6752a2","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":107,"box":{"x":495,"y":612,"width":267,"height":11}},{"id":"2af916e7-9b76-44e7-af0d-d29b48bdcca0","block_type":"box","text":"®","page_number":107,"box":{"x":762,"y":612,"width":6,"height":4}},{"id":"48c5f31d-ff62-46a1-8510-40553411fda7","block_type":"box","text":"”); public income","page_number":107,"box":{"x":770,"y":612,"width":118,"height":11}},{"id":"26fe8975-8223-488e-9ff1-79f519715b7b","block_type":"box","text":"notes (“PINES","page_number":107,"box":{"x":69,"y":627,"width":99,"height":11}},{"id":"28e00c92-e390-47c3-bd86-a2fd49f5df86","block_type":"box","text":"®","page_number":107,"box":{"x":169,"y":627,"width":6,"height":5}},{"id":"b0ca5878-e818-487d-a025-f1b70bb1741f","block_type":"box","text":"”); and other trust preferred securities.","page_number":107,"box":{"x":177,"y":627,"width":275,"height":11}},{"id":"301a1409-8d9f-46ef-9577-f8271782e1a6","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":107,"box":{"x":101,"y":649,"width":790,"height":12}},{"id":"caa91c0f-d4b1-4277-b951-5cd1da44df00","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":107,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"81624602-ee36-4f49-ab97-c821a2a4cb32","block_type":"box","text":"the issuer’s option for a specified time without default. No redemption can typically take place unless all cumulative","page_number":107,"box":{"x":68,"y":680,"width":827,"height":11}},{"id":"2daed922-e427-4caa-a752-bc560ee9f224","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":107,"box":{"x":70,"y":695,"width":808,"height":11}},{"id":"01a294cf-6188-4f5c-aa22-7dca1b22445f","block_type":"box","text":"regard to whether all payments have been paid.","page_number":107,"box":{"x":69,"y":710,"width":338,"height":11}},{"id":"88d9f5b1-c8fe-41a3-b96b-8368d0d40337","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":107,"box":{"x":102,"y":732,"width":784,"height":12}},{"id":"943e43e3-e4a6-4c17-a876-376dbfc6404a","block_type":"box","text":"companies and are not a direct obligation of an operating company. At the time the trust or special purpose entity","page_number":107,"box":{"x":69,"y":748,"width":811,"height":11}},{"id":"c14d834e-07b8-4c9d-a63f-cb9d38cc5b01","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":107,"box":{"x":69,"y":763,"width":817,"height":11}},{"id":"e8cf65f6-113d-404e-abae-10252d04bbbb","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":107,"box":{"x":68,"y":778,"width":785,"height":11}},{"id":"08766f1c-2aed-47c6-9049-c3cfa17bd08a","block_type":"box","text":"purposes the interest paid on the debt held by the trust or special purpose entity. The trust or special purpose entity","page_number":107,"box":{"x":70,"y":793,"width":830,"height":11}},{"id":"99def58b-17fb-4de6-ad1a-105755ec265e","block_type":"box","text":"is generally required to be treated as transparent for U.S. federal income tax purposes such that the holders of the","page_number":107,"box":{"x":70,"y":808,"width":819,"height":11}},{"id":"40337a21-7f00-4f92-9831-d7f4362b3d20","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":107,"box":{"x":68,"y":823,"width":827,"height":12}},{"id":"ed20095b-d3f2-4ef1-9a47-40803fecec1f","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":107,"box":{"x":68,"y":838,"width":824,"height":12}},{"id":"8203d7c6-4699-4464-80c1-1a77712a0709","block_type":"box","text":"income tax purposes. The trust or special purpose entity in turn would be a holder of the operating company’s debt","page_number":107,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"73f88e4d-f752-4bc7-85f6-fe28304b6caf","block_type":"box","text":"and would have priority with respect to the operating company’s earnings and profits over the operating company’s","page_number":107,"box":{"x":69,"y":869,"width":817,"height":11}},{"id":"2c399a0b-602d-4a5f-9cc7-2fbad61f7fe2","block_type":"box","text":"II-67","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"718fe7ab-084c-402a-aef2-31306ac21396","block_type":"box","text":"NM1026U-5982643-107/241","page_number":107,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f8ce162a-2a31-4ae6-9418-118974c3de81","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":108,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"81322272-42d6-41b7-a941-d33f02449aaf","block_type":"box","text":"Typically a preferred share has a rating that is slightly below that of its corresponding operating company’s senior","page_number":108,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"f3c685a3-9a8c-462d-9ac7-25e1f9745c40","block_type":"box","text":"debt securities.","page_number":108,"box":{"x":69,"y":75,"width":109,"height":9}},{"id":"0c7f5036-f827-41aa-b057-cfe5e85c0e13","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":108,"box":{"x":102,"y":98,"width":300,"height":11}},{"id":"a688d975-49a7-40dc-9abb-69c57da06d82","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":108,"box":{"x":409,"y":98,"width":473,"height":11}},{"id":"e77b0b61-0e52-498d-942b-abefd6eea1c7","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":108,"box":{"x":70,"y":113,"width":814,"height":11}},{"id":"72f7e9b5-0b49-42d5-89dc-67f57459b14d","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":108,"box":{"x":68,"y":128,"width":814,"height":11}},{"id":"50d1abaf-5dfd-4b6f-a4d5-c4ea8ed3cbb6","block_type":"box","text":"geographic areas or in specific proper ty types, i.e., hotels, shopping malls, residential complexes and office","page_number":108,"box":{"x":68,"y":143,"width":771,"height":11}},{"id":"21a831b0-b33a-44de-a63e-ff97b8c2a7c2","block_type":"box","text":"buildings.","page_number":108,"box":{"x":69,"y":158,"width":66,"height":11}},{"id":"5e23abf0-74f2-4688-8772-d18c152a9f16","block_type":"box","text":"REITs are subject to management fees and other expenses, and so a Fund that invests in REITs will bear its","page_number":108,"box":{"x":102,"y":181,"width":768,"height":11}},{"id":"6985807e-a853-49b2-9498-8bab4cab5f48","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":108,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"bbc55c6c-85b6-4f0d-90a9-3ef7feda32ca","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":108,"box":{"x":70,"y":211,"width":829,"height":11}},{"id":"78c857b9-d3ee-4ce0-85fa-49f86c4b142b","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":108,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"52681f4b-eafc-4f05-8e44-a4a65843d372","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":108,"box":{"x":68,"y":241,"width":782,"height":11}},{"id":"88ba1947-63ee-464c-b4ff-f70322be10f7","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":108,"box":{"x":70,"y":257,"width":649,"height":11}},{"id":"690c2729-b5f6-488c-92a7-0ed8ff196cc0","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":108,"box":{"x":102,"y":279,"width":776,"height":11}},{"id":"0abd7882-4e7a-43b4-a18d-a8dd69d62941","block_type":"box","text":"estate industry in general. The market value of REIT shares and the ability of the REITs to distribute income may be","page_number":108,"box":{"x":69,"y":294,"width":822,"height":11}},{"id":"1f8a9d75-e0b4-4e07-ae3e-0c4d3d358198","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":108,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"d1e10c8e-eaeb-4ddd-a641-9c9a6113242e","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":108,"box":{"x":69,"y":324,"width":822,"height":11}},{"id":"3016087a-27e5-4e3a-b748-60b332eaae16","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":108,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"bf619b38-4327-42fa-a688-36f22f32722e","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":108,"box":{"x":69,"y":355,"width":810,"height":11}},{"id":"784c9b0e-2297-4b67-9686-12459c3ad975","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":108,"box":{"x":68,"y":370,"width":812,"height":11}},{"id":"49d2f1a6-ecb0-4ce3-825c-72474fdc52e3","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":108,"box":{"x":70,"y":385,"width":838,"height":11}},{"id":"68a885a7-31b5-4828-a372-28a9260c625e","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":108,"box":{"x":68,"y":400,"width":826,"height":11}},{"id":"2d72153a-6b4f-4b00-a8fb-960d2c03fff5","block_type":"box","text":"zoning laws and other factors beyond the control of the issuers of the REITs. To the extent that assets underlying a","page_number":108,"box":{"x":69,"y":415,"width":817,"height":11}},{"id":"27bc371a-3284-41a5-87a2-ea6622c60843","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":108,"box":{"x":70,"y":430,"width":822,"height":11}},{"id":"f11ae46b-7f19-4296-ba2e-144345d9309e","block_type":"box","text":"In addition, distributions received by a Fund from REITs may consist of dividends, capital gains and/or return of","page_number":108,"box":{"x":70,"y":445,"width":792,"height":12}},{"id":"ada18914-032d-4e8b-95b6-ccc9ae98d033","block_type":"box","text":"capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent","page_number":108,"box":{"x":69,"y":460,"width":834,"height":12}},{"id":"ace204c2-4ab3-4bf6-a787-25c9b54d1369","block_type":"box","text":"application of the Fund’s investment strategy results in the Fund investing in REIT shares, the percentage of the","page_number":108,"box":{"x":69,"y":475,"width":798,"height":12}},{"id":"2c5e0304-0846-4fcb-ac5b-3df308f921bb","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":108,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"b730d935-ca8e-433a-855d-8a03c01de3a2","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":108,"box":{"x":69,"y":506,"width":821,"height":11}},{"id":"9e332b8b-2c3f-4f86-a117-be62b7bede47","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":108,"box":{"x":68,"y":521,"width":797,"height":11}},{"id":"aa171556-d73d-4cf5-93d6-6b6ce1691719","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":108,"box":{"x":69,"y":536,"width":798,"height":11}},{"id":"659d192c-a614-4ddd-aa79-d15de9385360","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":108,"box":{"x":69,"y":551,"width":820,"height":11}},{"id":"2af0451f-b0cd-46e3-9cd9-326a145e5b28","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":108,"box":{"x":68,"y":566,"width":831,"height":11}},{"id":"e00a3bec-2039-4442-acdc-86b8d4fae087","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":108,"box":{"x":69,"y":582,"width":801,"height":11}},{"id":"de1a0ef2-fdc8-41ea-9a7c-3d027943ae36","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":108,"box":{"x":70,"y":596,"width":631,"height":12}},{"id":"f0dc6ff7-5688-4c4d-99d2-e77350b92bac","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":108,"box":{"x":102,"y":619,"width":772,"height":11}},{"id":"808fda18-83d4-419b-bb00-4c37a6b3820b","block_type":"box","text":"investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity","page_number":108,"box":{"x":70,"y":634,"width":790,"height":12}},{"id":"4771de7d-b256-407e-bf98-cb4e2837021f","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":108,"box":{"x":69,"y":649,"width":834,"height":12}},{"id":"7db32f68-432f-40da-bb69-3930a923a631","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":108,"box":{"x":69,"y":664,"width":837,"height":12}},{"id":"1aa5b82d-1fcc-48ca-8e8d-b29d3b485cf1","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":108,"box":{"x":69,"y":680,"width":812,"height":11}},{"id":"60391016-8f28-4096-8d59-0eab1548357a","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":108,"box":{"x":69,"y":695,"width":759,"height":11}},{"id":"86a9b2a6-5493-4540-9b37-a92c1f43d919","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":108,"box":{"x":69,"y":710,"width":778,"height":11}},{"id":"c134a08c-aaf0-4be6-b6c6-48f1927d1bd6","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":108,"box":{"x":102,"y":732,"width":773,"height":12}},{"id":"25d8ecfb-d367-4918-979f-fa3e1a65510d","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":108,"box":{"x":70,"y":748,"width":836,"height":11}},{"id":"acbdeec4-fe6f-413f-a978-ec6a25cf62b6","block_type":"box","text":"trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger","page_number":108,"box":{"x":68,"y":763,"width":839,"height":11}},{"id":"c625a1df-7125-4874-b38c-bec8daf841b5","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":108,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"5731a655-e0c1-4b86-a941-acca2a3be82a","block_type":"box","text":"larger capitalization stocks such as those included in the S&P 500 Index. The management of a REIT may be subject","page_number":108,"box":{"x":70,"y":793,"width":832,"height":11}},{"id":"5d8e9b16-22bc-4d0f-8e83-f076807f2e3c","block_type":"box","text":"to conflicts of interest with respect to the operation of the business of the REIT and may be involved in real estate","page_number":108,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"52951191-434f-4126-988b-9cc10ecfc374","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":108,"box":{"x":69,"y":823,"width":804,"height":12}},{"id":"6861db53-599b-413b-9747-e679078252ae","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":108,"box":{"x":68,"y":838,"width":761,"height":12}},{"id":"48f752c4-5a1b-4f7b-a905-4ab6cbabbe9b","block_type":"box","text":"Market Risks/Recent Market Events","page_number":108,"box":{"x":102,"y":861,"width":272,"height":11}},{"id":"3ae2dde4-105a-4fcc-9eda-271513d35bde","block_type":"box","text":". Securities may decline in value due to factors affecting securities","page_number":108,"box":{"x":374,"y":861,"width":475,"height":11}},{"id":"f2da4987-9a55-4864-bae6-bb6f24a21f92","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":108,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"ffc73a12-9e01-4b32-9e02-c2f73629365f","block_type":"box","text":"general market conditions, economic trends or events that are not specifically related to a company or to factors that","page_number":108,"box":{"x":68,"y":891,"width":837,"height":12}},{"id":"cedf8676-539f-4194-a5d7-11657f03b7d8","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":108,"box":{"x":69,"y":906,"width":795,"height":12}},{"id":"a7776bdb-6f54-4d63-99c1-8d71a5924513","block_type":"box","text":"II-68","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a99f254-213d-43b2-abbe-3c21cdfcd894","block_type":"box","text":"NM1026U-5982643-108/241","page_number":108,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"ea451315-2d6a-451b-a37b-0efa55973012","block_type":"box","text":"group of countries, region, market, industry, group of industries, sector or asset class. The success of a Fund’s","page_number":109,"box":{"x":68,"y":45,"width":796,"height":11}},{"id":"fe10ec66-f309-45f7-aaf6-c270029b8f29","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":109,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"22d73812-9a97-4fc5-96be-02ca23021cad","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":109,"box":{"x":70,"y":75,"width":812,"height":11}},{"id":"315e8f12-b4bf-4b3b-be17-43c47dd65d42","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":109,"box":{"x":68,"y":90,"width":807,"height":11}},{"id":"bac4a289-a20e-434d-b3e5-2c421d158777","block_type":"box","text":"issues, recessions, or other events could have a significant impact on a Fund and its investments. During a general","page_number":109,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"8758f889-fb64-49d5-b620-474e2257b891","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":109,"box":{"x":69,"y":120,"width":828,"height":12}},{"id":"62398a74-63e3-4654-b500-b1f126cd2a93","block_type":"box","text":"affect the level and volatility of securities prices and the liquidity of a Fund’s investments, which could impair the","page_number":109,"box":{"x":69,"y":135,"width":804,"height":11}},{"id":"1bbf6fec-567c-4972-aecc-7335343b8d7d","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":109,"box":{"x":70,"y":150,"width":787,"height":12}},{"id":"90fdd3b7-f96d-4457-8038-d966c0c420b4","block_type":"box","text":"affected by the level of volatility in the financial markets; the larger the positions, the greater the potential for loss.","page_number":109,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"17b73713-9927-4700-8b46-6e990eba13c1","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":109,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"15b2c119-d04d-4bde-ab28-31c0d1ad5a81","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":109,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"b5f470b5-3186-4b11-aa64-0aac5482d718","block_type":"box","text":"understand that a Fund can incur material losses even if it reacts quickly to difficult market conditions and there can","page_number":109,"box":{"x":69,"y":211,"width":831,"height":11}},{"id":"bcbf8242-1199-4e6c-959a-684655370b4f","block_type":"box","text":"be no assurance that a Fund will not suffer material adverse effects from broad and rapid changes in market","page_number":109,"box":{"x":69,"y":226,"width":776,"height":11}},{"id":"dbb28c6f-4c5f-4218-8fd5-9cf8820a891e","block_type":"box","text":"conditions. Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes","page_number":109,"box":{"x":69,"y":241,"width":814,"height":11}},{"id":"a555fc7c-f873-41ad-9b85-3b5981370cd5","block_type":"box","text":"limited to a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted","page_number":109,"box":{"x":70,"y":256,"width":817,"height":12}},{"id":"883d697f-e3ee-4825-a077-b9efe6930add","block_type":"box","text":"and/or are considering the adoption of more protectionist trade policies, a move away from the tighter financial","page_number":109,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"5a47f1f6-a9c6-4151-b1f6-93b6508524a9","block_type":"box","text":"industry regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The","page_number":109,"box":{"x":70,"y":286,"width":804,"height":12}},{"id":"8780b2c7-8b15-406a-a148-f8cc3d4fa9df","block_type":"box","text":"exact shape of these policies is still being considered, but the equity and debt markets may react strongly to","page_number":109,"box":{"x":69,"y":302,"width":775,"height":11}},{"id":"95f867d8-c0f2-4c61-ac5a-07f53bc33190","block_type":"box","text":"expectations of change, which could increase volatility, especially if the market’s expectations are not borne out. A","page_number":109,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"ac4bab15-fbbb-4f2c-8f5c-6fa7712fa498","block_type":"box","text":"rise in protectionist trade policies, and the possibility of changes to some international trade agreements, could","page_number":109,"box":{"x":69,"y":332,"width":797,"height":11}},{"id":"fdec49b1-49c1-4799-b10e-2cd44af1099f","block_type":"box","text":"affect the economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition,","page_number":109,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"d2ed5c98-7197-490f-9094-abe9811ea642","block_type":"box","text":"geopolitical and other risks, including environmental and public health, may add to instability in world economies and","page_number":109,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"44eecbb1-5f32-405a-bf7a-1a41f9900544","block_type":"box","text":"markets generally. Economies and financial markets throughout the world are increasingly interconnected. As a","page_number":109,"box":{"x":69,"y":377,"width":791,"height":12}},{"id":"f617f070-256a-44a6-a3a0-f19e2b4b82ed","block_type":"box","text":"result, whether or not a Fund invests in securities of issuers located in or with significant exposure to countries","page_number":109,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"a7b2f64a-75e2-4e54-b1bd-82f8b0ce4a53","block_type":"box","text":"experiencing economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be","page_number":109,"box":{"x":69,"y":407,"width":836,"height":12}},{"id":"96f61e51-1170-4784-b7dc-8e254bc90f25","block_type":"box","text":"negatively affected by such events.","page_number":109,"box":{"x":69,"y":423,"width":249,"height":11}},{"id":"4058f641-154e-4cf3-83e6-c7814ac7f1c7","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":109,"box":{"x":102,"y":445,"width":795,"height":12}},{"id":"fe7b6cf0-d3c0-446a-b1bf-ff04e6a7ce3c","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":109,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"3cdb20c3-1926-4096-88e2-594a6dd4d224","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":109,"box":{"x":69,"y":476,"width":796,"height":11}},{"id":"8d2735f1-fa37-4142-8a60-11367e91f406","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":109,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"51f0ad20-4192-4f69-948f-4934021f7c4a","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":109,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"446d2e08-ff17-4cba-ae6d-27b8ed3056de","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets, and could adversely affect the","page_number":109,"box":{"x":68,"y":521,"width":763,"height":11}},{"id":"8cf2ef1e-aea3-4af1-a224-f9df9239ef99","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":109,"box":{"x":70,"y":536,"width":819,"height":11}},{"id":"dcda8c1a-108b-4e2f-a2da-7d36f4711565","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":109,"box":{"x":68,"y":551,"width":821,"height":11}},{"id":"e89044bd-f03f-4bf1-a131-58ff4747f776","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":109,"box":{"x":68,"y":566,"width":837,"height":11}},{"id":"d96b9f0d-b6f9-4b79-963c-5971f8a7a24e","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":109,"box":{"x":69,"y":581,"width":795,"height":12}},{"id":"e5fa06f0-c899-4973-bf10-7acc0085be6c","block_type":"box","text":"branches of the U.S. Government, the U.S. Government’s inability at times to agree on a long-term budget and deficit","page_number":109,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"e737d953-6890-4adf-8200-f9c702e186c0","block_type":"box","text":"reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the","page_number":109,"box":{"x":69,"y":612,"width":817,"height":11}},{"id":"5f7678d2-7d1f-40fd-b598-a5720fea5326","block_type":"box","text":"U.S. Government’s borrowing limit (or “debt ceiling”), as well as political and diplomatic events abroad, may affect","page_number":109,"box":{"x":70,"y":627,"width":816,"height":11}},{"id":"223c7986-1b26-40d2-9ba7-dae42180d55d","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":109,"box":{"x":70,"y":642,"width":813,"height":11}},{"id":"6cf7e38f-d1b4-42a4-8040-53bfc77b6529","block_type":"box","text":"suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns","page_number":109,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"d74615e0-c28c-4908-93d9-300596a5a97d","block_type":"box","text":"about the U.S. Government’s credit quality in general, could have a substantial negative effect on the U.S. and global","page_number":109,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"56442572-ace6-4a2d-be14-ce54240e4d34","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":109,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"6b3b07d8-ca21-44e6-b7c6-f0ca6245e30d","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":109,"box":{"x":69,"y":702,"width":785,"height":12}},{"id":"49a35c6d-7ece-4976-98ac-88520e7467c4","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":109,"box":{"x":70,"y":717,"width":832,"height":12}},{"id":"0135873b-7f76-4dba-abf4-4d95b5cd7425","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":109,"box":{"x":68,"y":732,"width":799,"height":12}},{"id":"28112599-c464-4f5d-abd7-000c98a87325","block_type":"box","text":"unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly","page_number":109,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"0b4de2af-58ee-4708-a6c2-e10dc4b9dcba","block_type":"box","text":"disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund’s","page_number":109,"box":{"x":69,"y":763,"width":746,"height":11}},{"id":"1efd52f7-7a4a-40a0-8b36-9e1117c9a0d7","block_type":"box","text":"investments.","page_number":109,"box":{"x":70,"y":778,"width":89,"height":9}},{"id":"8beced10-8bde-4698-b36b-fadaf75a82b5","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":109,"box":{"x":101,"y":801,"width":802,"height":11}},{"id":"3aa2d3d6-98ad-4cde-8d84-e884dee43b5b","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":109,"box":{"x":68,"y":816,"width":796,"height":11}},{"id":"58b9782c-a8dc-477b-a474-ebafa5f407b4","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":109,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"6b999ca7-ecaa-45ff-ba13-64c5774d7b48","block_type":"box","text":"in the future, could affect the economies of many nations, individual companies and the market in general in ways","page_number":109,"box":{"x":70,"y":846,"width":813,"height":11}},{"id":"6c5788d3-5ee4-49b7-bb03-40bfb25c2887","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":109,"box":{"x":68,"y":861,"width":812,"height":11}},{"id":"eb6a2872-aaee-429d-800a-d4a9cf22c77f","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":109,"box":{"x":69,"y":876,"width":771,"height":11}},{"id":"46ec019f-2368-456a-8f51-4b04f6dca796","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":109,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"a70a0700-abd7-4c3b-a7d1-5d5305280085","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":109,"box":{"x":69,"y":907,"width":646,"height":11}},{"id":"b6af3312-238a-42b8-8b99-454c9bfc4199","block_type":"box","text":"II-69","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"331e30c1-4af4-461c-9918-8c848b6db1ea","block_type":"box","text":"NM1026U-5982643-109/241","page_number":109,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"10c6fb1a-6856-406e-af2b-779719b0aadd","block_type":"box","text":"Legal and Regulatory Risks.","page_number":110,"box":{"x":102,"y":45,"width":197,"height":11}},{"id":"4b62a75c-5601-45c4-8bb7-104538375222","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":110,"box":{"x":305,"y":45,"width":583,"height":11}},{"id":"13893713-2904-4051-921f-2ae573c77dc6","block_type":"box","text":"jurisdictions that are governed by a multitude of legal systems and regulatory regimes, some of which are new and","page_number":110,"box":{"x":67,"y":60,"width":819,"height":11}},{"id":"1a2b1413-b6d9-49be-a65d-df6282844532","block_type":"box","text":"evolving. As a result, the Funds and the Manager and its affiliates are subject to extensive and sophisticated legal,","page_number":110,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"1559018b-80f3-4b37-b34e-ec0ea99e40b9","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":110,"box":{"x":68,"y":90,"width":781,"height":11}},{"id":"f1c064d5-d50e-4a36-ab59-0f42ebc56252","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":110,"box":{"x":69,"y":105,"width":763,"height":11}},{"id":"231c1249-0862-4239-ad8e-9d1c3659f4e5","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":110,"box":{"x":70,"y":120,"width":838,"height":12}},{"id":"5bcb313e-66b4-4556-b9de-a7a9a0f8a717","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":110,"box":{"x":69,"y":135,"width":781,"height":12}},{"id":"fac6f79b-b184-4072-9418-745d4050e865","block_type":"box","text":"changes to comply with current and/or new regulations applicable to the Funds and/or the Manager could have a","page_number":110,"box":{"x":69,"y":151,"width":807,"height":11}},{"id":"259adddc-8182-4dca-b0d1-c06a1d6aca19","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":110,"box":{"x":69,"y":166,"width":807,"height":11}},{"id":"cc02daed-ed79-4be2-b9ec-7b66957ae78c","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":110,"box":{"x":69,"y":181,"width":666,"height":11}},{"id":"9d4f2722-f815-4d00-bd28-a044dde932f8","block_type":"box","text":"Tariff and Trade Policy Risks","page_number":110,"box":{"x":103,"y":203,"width":198,"height":12}},{"id":"e64cb44a-d14a-4675-902c-984197a58ca6","block_type":"box","text":".","page_number":110,"box":{"x":302,"y":210,"width":3,"height":2}},{"id":"5ee6766c-15cd-4ce4-93bd-9feb14a8e602","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":110,"box":{"x":312,"y":203,"width":593,"height":12}},{"id":"967cb446-0350-41d7-8f8a-844d02b34c53","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":110,"box":{"x":68,"y":218,"width":806,"height":12}},{"id":"337f4f55-9fe8-4c9f-8ab7-39eca413df97","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":110,"box":{"x":70,"y":234,"width":833,"height":11}},{"id":"2979004b-c6e9-4dc7-81e3-9c5f6ad453cc","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":110,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"ea95ba76-7b7e-4817-93a1-cdb0a7af69e3","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":110,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"574f6e8f-0b29-4f8e-96b6-9e5d86fa7a83","block_type":"box","text":"Union, and the risks associated with trade negotiations between the U.S. and China, could affect the economies of","page_number":110,"box":{"x":70,"y":279,"width":821,"height":11}},{"id":"b36c2fa1-48c6-4c54-9215-5a511039ac2c","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":110,"box":{"x":69,"y":294,"width":559,"height":11}},{"id":"f238f0f6-0320-4fbf-b6bc-05199aafcebd","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":110,"box":{"x":102,"y":317,"width":796,"height":11}},{"id":"3a395ebd-b738-406b-803b-053f3fe1cc14","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":110,"box":{"x":68,"y":332,"width":809,"height":11}},{"id":"ffd1739f-50c2-40e6-80de-4771b070b83d","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":110,"box":{"x":70,"y":347,"width":799,"height":11}},{"id":"0a72421f-d45f-46c6-85e6-f0fbe69cb4c5","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":110,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"c24bd31b-a87d-4688-9f5e-419013b30c87","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":110,"box":{"x":69,"y":377,"width":801,"height":12}},{"id":"4282a98d-82ff-48e2-8674-65d1adbf35bb","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":110,"box":{"x":69,"y":392,"width":783,"height":12}},{"id":"b06d313e-76ee-44e6-b08b-0b6c7eef32b9","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":110,"box":{"x":69,"y":407,"width":753,"height":11}},{"id":"944df947-e5bd-4d5d-a48d-91c8ca70c329","block_type":"box","text":"Geographic Risks","page_number":110,"box":{"x":102,"y":430,"width":123,"height":11}},{"id":"c1b2a614-9240-4a71-a87a-fbebcc2dc0e8","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":110,"box":{"x":226,"y":430,"width":671,"height":11}},{"id":"ef334529-81b5-48ae-805b-c385baa17944","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":110,"box":{"x":68,"y":445,"width":835,"height":11}},{"id":"7e0cb574-4a92-42c4-af4c-dd8778986961","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":110,"box":{"x":68,"y":460,"width":787,"height":12}},{"id":"07612032-4445-4d5e-8819-3da9800d0922","block_type":"box","text":"addition, issuers may be impacted by security concerns with respect to a country or region, such as war and other","page_number":110,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"9f75daf4-2054-421e-b7e4-37374e45f124","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":110,"box":{"x":68,"y":491,"width":840,"height":11}},{"id":"4f00acd4-ebd7-4188-80e9-4d7e3090085b","block_type":"box","text":"affect the issuers, markets and economies to which a Fund is exposed, which may adversely affect the value of the","page_number":110,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"9ea9f7fa-7a71-4efa-8358-89d753442506","block_type":"box","text":"Fund.","page_number":110,"box":{"x":70,"y":521,"width":36,"height":9}},{"id":"ce5709b1-6e81-4918-9a89-ca1d0338edda","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":110,"box":{"x":102,"y":544,"width":255,"height":11}},{"id":"003d09e2-ec30-4ee8-8502-b5d4eee21c85","block_type":"box","text":"The London Interbank Offered Rate (“LIBOR”) had historically been used","page_number":110,"box":{"x":363,"y":543,"width":514,"height":12}},{"id":"aa489bac-28b6-4a9d-978a-8540769036fe","block_type":"box","text":"extensively in the U.S. and globally as a “benchmark” or “reference rate” for various commercial and financial","page_number":110,"box":{"x":69,"y":559,"width":782,"height":11}},{"id":"b514e5f0-22ca-43a1-b35e-f54be9348600","block_type":"box","text":"contracts, including corporate and municipal bonds, bank loans, asset-backed and mor tgage-related securities,","page_number":110,"box":{"x":69,"y":574,"width":791,"height":11}},{"id":"9132e7ca-51f5-4b30-a4cf-196506947f95","block_type":"box","text":"interest rate swaps and other derivatives. Instruments in which a Fund may have historically paid interest at floating","page_number":110,"box":{"x":70,"y":589,"width":826,"height":11}},{"id":"2de4d3db-4dc5-42ee-aa6a-e05e6b70e525","block_type":"box","text":"rates based on LIBOR or may have been subject to interest caps or floors based on LIBOR. The Funds and issuers of","page_number":110,"box":{"x":69,"y":604,"width":834,"height":11}},{"id":"73662a5e-7417-4799-aff6-0f39b97f9b07","block_type":"box","text":"instruments in which a Fund invests may have also historically obtained financing at floating rates based on LIBOR. In","page_number":110,"box":{"x":70,"y":619,"width":837,"height":11}},{"id":"37639181-0fd8-492b-b56f-ff42266659a9","block_type":"box","text":"connection with the global transition away from LIBOR led by regulators and market par ticipants as a result of","page_number":110,"box":{"x":69,"y":634,"width":783,"height":12}},{"id":"51188284-8614-470f-871b-0c14b1e04cfa","block_type":"box","text":"benchmark reforms, LIBOR was last published on a representative basis at the end of June 2023. Alternative","page_number":110,"box":{"x":69,"y":649,"width":779,"height":11}},{"id":"6ea54249-294c-486c-95c4-d4d9aab2a8cb","block_type":"box","text":"reference rates to LIBOR have been established in most major currencies and markets in these alternative rates are","page_number":110,"box":{"x":69,"y":664,"width":830,"height":12}},{"id":"6c03f2db-07ce-49c7-92c0-b8f46619655e","block_type":"box","text":"continuing to develop (","page_number":110,"box":{"x":69,"y":680,"width":160,"height":11}},{"id":"3e7c78b3-5afc-4c6b-885a-35c1981e2366","block_type":"box","text":"e.g.","page_number":110,"box":{"x":231,"y":681,"width":25,"height":10}},{"id":"a45de91d-3919-4f7b-b976-6efc22d68e46","block_type":"box","text":", the Secured Overnight Financing Rate (“SOFR”) for USD-LIBOR). While the transition from","page_number":110,"box":{"x":258,"y":680,"width":641,"height":11}},{"id":"ea01472b-a6c4-49b3-b2c8-2d09426a7f4e","block_type":"box","text":"LIBOR has gone relatively smoothly, residual risks associated with the transition may remain that may impact","page_number":110,"box":{"x":70,"y":695,"width":777,"height":11}},{"id":"c74ebd97-53d1-4aa8-9a4a-9f19a01924a1","block_type":"box","text":"markets or par ticular investments and, as such, the full impact of the transition on the Funds or the financial","page_number":110,"box":{"x":69,"y":710,"width":776,"height":11}},{"id":"fc99321c-f1ee-487e-9da1-54257b0afd22","block_type":"box","text":"instruments in which the Funds invest cannot yet be fully determined.","page_number":110,"box":{"x":70,"y":725,"width":493,"height":11}},{"id":"454491e8-08d4-4c86-a908-c695f3749b53","block_type":"box","text":"SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are","page_number":110,"box":{"x":102,"y":748,"width":750,"height":11}},{"id":"3a0cd285-d54b-42bf-b98d-e920880e1534","block_type":"box","text":"collateralized by U.S.. SOFR is calculated based on transaction-level repo data collected from various sources. For","page_number":110,"box":{"x":69,"y":763,"width":813,"height":11}},{"id":"f0ca1483-2057-4037-b207-0272ecc01408","block_type":"box","text":"each trading day, SOFR is calculated as a volume-weighted median rate derived from such data. Because SOFR is a","page_number":110,"box":{"x":69,"y":778,"width":822,"height":11}},{"id":"0eb866e6-e9cd-4fcc-be2c-04094e61daa6","block_type":"box","text":"financing rate based on overnight secured funding transactions, it differs fundamentally from LIBOR. LIBOR is","page_number":110,"box":{"x":68,"y":793,"width":780,"height":11}},{"id":"46d7189a-1769-41a4-a083-5ae8a6616068","block_type":"box","text":"intended to be an unsecured rate that represents interbank funding costs for different shor t-term maturities or","page_number":110,"box":{"x":70,"y":808,"width":788,"height":11}},{"id":"581d6165-48b1-407e-8448-51674e1e9ce7","block_type":"box","text":"tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable tenor. Thus,","page_number":110,"box":{"x":68,"y":823,"width":798,"height":12}},{"id":"d9f25757-847b-4598-8610-0690d9c961fc","block_type":"box","text":"LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk. In contrast,","page_number":110,"box":{"x":70,"y":838,"width":820,"height":11}},{"id":"3c5a5041-4d82-40b3-a3c7-26849428c517","block_type":"box","text":"SOFR is a secured overnight rate reflecting the credit of U.S. Treasury securities as collateral. Thus, it is largely","page_number":110,"box":{"x":69,"y":853,"width":795,"height":12}},{"id":"ef032873-0b5f-48bc-8da9-1570279b3692","block_type":"box","text":"insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate, and it","page_number":110,"box":{"x":70,"y":869,"width":833,"height":10}},{"id":"450c00fc-fdcf-4387-8cf0-8a13e1c41fe8","block_type":"box","text":"has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain periods.","page_number":110,"box":{"x":69,"y":884,"width":813,"height":11}},{"id":"5b89a77d-38a6-4b81-bf56-cfc9a26c9f5f","block_type":"box","text":"For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form in the","page_number":110,"box":{"x":70,"y":899,"width":819,"height":11}},{"id":"ecf0a34b-0d84-4f4a-9630-d53002d045d9","block_type":"box","text":"II-70","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dd776831-a2ba-4b0f-a0cf-2191461f458c","block_type":"box","text":"NM1026U-5982643-110/241","page_number":110,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"a717d2cf-3fee-45c4-bb36-34da26fe9d0a","block_type":"box","text":"same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based rates","page_number":111,"box":{"x":69,"y":45,"width":822,"height":11}},{"id":"c357b3d0-02d3-4a03-a3aa-92ac861b2f8b","block_type":"box","text":"will be a suitable substitute for LIBOR. SOFR has a relatively limited history, having been first published in April 2018.","page_number":111,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"cdda921d-b8cc-4492-b6a3-9141b381d999","block_type":"box","text":"The future per formance of SOFR, and SOFR-based reference rates, cannot be predicted based on SOFR’s history or","page_number":111,"box":{"x":68,"y":75,"width":825,"height":11}},{"id":"9b7ada1b-dc09-4684-bea4-f78df8c238f4","block_type":"box","text":"otherwise. Levels of SOFR in the future may bear little or no relation to historical levels of SOFR, LIBOR or other","page_number":111,"box":{"x":69,"y":90,"width":796,"height":11}},{"id":"9e2e4aaa-cb57-469e-8219-6b28c1173ab6","block_type":"box","text":"rates. There can also be no assurance that SOFR will not be discontinued or fundamentally altered in a manner that","page_number":111,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"bbfbb029-422c-4b47-b8cb-81a3676051a5","block_type":"box","text":"is materially adverse to the interests of the Fund","page_number":111,"box":{"x":70,"y":120,"width":344,"height":11}},{"id":"ef962f7d-d836-4894-bcf5-ac28648cd0b5","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":111,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"84f7fee2-029f-475a-900d-f1a8894f1165","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":111,"box":{"x":68,"y":158,"width":786,"height":11}},{"id":"0d98908b-0b4d-4788-8c58-dc1755b30d9e","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":111,"box":{"x":69,"y":173,"width":746,"height":11}},{"id":"877c2aa4-f5aa-4fba-a5e8-6d0f8391935a","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":111,"box":{"x":70,"y":188,"width":822,"height":12}},{"id":"db213ee5-d1fa-4790-ab14-1e8a43401e98","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":111,"box":{"x":69,"y":203,"width":821,"height":12}},{"id":"e682a44a-1052-4fc3-836c-e2485f19a829","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":111,"box":{"x":68,"y":219,"width":799,"height":11}},{"id":"ee55a74f-d9fb-4869-b1c9-9f01986ce871","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":111,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"e790674e-fac8-4f9c-aecf-dfa8206a2719","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":111,"box":{"x":70,"y":249,"width":757,"height":11}},{"id":"616c2879-26ab-4332-b0fd-c05219384c54","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":111,"box":{"x":69,"y":264,"width":802,"height":11}},{"id":"466906ff-89d1-4547-a492-f092a89313c1","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":111,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"aa07641c-e045-4228-a849-217932e6cf9a","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":111,"box":{"x":70,"y":294,"width":782,"height":11}},{"id":"78315267-d3ca-453c-9cf8-6b31798f2240","block_type":"box","text":"consequences which cannot be predicted.","page_number":111,"box":{"x":69,"y":309,"width":298,"height":11}},{"id":"808c0a58-7f83-479b-b590-2fb412a036b6","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":111,"box":{"x":102,"y":332,"width":432,"height":11}},{"id":"61b487b4-b9d5-4398-927f-7e2edc783e74","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":111,"box":{"x":541,"y":332,"width":347,"height":11}},{"id":"8abc8cea-68a3-4062-9cb2-20d14919ecb6","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":111,"box":{"x":69,"y":347,"width":821,"height":11}},{"id":"d578e8d0-c6f7-409f-9bc5-4f72f4272a11","block_type":"box","text":"the Fund at a mutually agreed-upon time and price in a specified currency, thereby determining the yield during the","page_number":111,"box":{"x":68,"y":362,"width":815,"height":11}},{"id":"0251d306-63b8-44cf-961c-33a84b66a9e0","block_type":"box","text":"term of the agreement.","page_number":111,"box":{"x":68,"y":377,"width":164,"height":12}},{"id":"5845ee12-de66-433d-90ef-290d7dc77585","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":111,"box":{"x":101,"y":400,"width":788,"height":11}},{"id":"24766894-b0b4-4347-a3d0-1a5bd71e7d85","block_type":"box","text":"that securities are owned by the Fund and the purchaser receives any interest on the security paid during the period.","page_number":111,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"e1391c6c-29a7-4183-8ce2-ae1f0b4c6ebb","block_type":"box","text":"In the case of repurchase agreements, the prices at which the trades are conducted do not reflect accrued interest","page_number":111,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"81d174f7-2550-4f46-920f-03bd14930bfd","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":111,"box":{"x":69,"y":445,"width":790,"height":12}},{"id":"b512b5db-dd68-401f-8242-3cbddda739be","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":111,"box":{"x":69,"y":461,"width":827,"height":11}},{"id":"972ec8c4-970e-4220-89ea-1c815d542d4e","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":111,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"de53a687-eb3a-4116-b09b-ddf7c6985606","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":111,"box":{"x":68,"y":491,"width":522,"height":11}},{"id":"bd01370e-3c1a-4137-b04f-64329e5c87e4","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":111,"box":{"x":102,"y":513,"width":792,"height":12}},{"id":"362035f8-b0eb-4944-a76d-b37200adea0e","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":111,"box":{"x":70,"y":528,"width":784,"height":12}},{"id":"4f781557-4a15-41dd-927d-cf509fb22383","block_type":"box","text":"currency fluctuations. However, in the event of a default under a repurchase agreement or under a purchase and sale","page_number":111,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"70c2a169-8e1b-4750-835c-5c73986dc996","block_type":"box","text":"contract, instead of the contractual fixed rate, the rate of return to the Fund would be dependent upon intervening","page_number":111,"box":{"x":69,"y":559,"width":812,"height":11}},{"id":"cf9a009a-c917-4077-8fa9-89eb3de82571","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":111,"box":{"x":68,"y":574,"width":770,"height":11}},{"id":"1ef82096-e528-4d37-8463-b05e623ce860","block_type":"box","text":"securities. In such event, the Fund would have rights against the seller for breach of contract with respect to any","page_number":111,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"b8f4d614-9168-4c04-ae29-384ecc357200","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":111,"box":{"x":70,"y":604,"width":430,"height":11}},{"id":"bc2b5ea9-8392-4475-8195-86ba25ef01ec","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":111,"box":{"x":102,"y":627,"width":759,"height":11}},{"id":"c327417f-ef4b-41d4-abbd-44402613429f","block_type":"box","text":"longer terms, and may be construed to be collateralized loans by the purchaser to the seller secured by the","page_number":111,"box":{"x":70,"y":642,"width":765,"height":11}},{"id":"d7fa41c5-49f7-4398-993c-70806f17be35","block_type":"box","text":"securities transferred to the purchaser. In the case of a repurchase agreement, as a purchaser, a Fund’s Manager or","page_number":111,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"b4592036-8caa-4471-897e-c7e4ece321a8","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":111,"box":{"x":69,"y":672,"width":799,"height":11}},{"id":"604eae81-8804-4acd-9245-9c16eb72f95f","block_type":"box","text":"collateral if the market value of the securities falls below the repurchase price at any time during the term of the","page_number":111,"box":{"x":69,"y":687,"width":801,"height":11}},{"id":"68bf784e-29b6-4399-a2e7-628981e7634d","block_type":"box","text":"repurchase agreement. The Fund does not have this right to seek additional collateral as a purchaser in the case of","page_number":111,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"fffde216-2536-4428-b5a5-5257f04d1322","block_type":"box","text":"purchase and sale contracts. The Fund’s Manager or sub-adviser will mark-to-market daily the value of the securities.","page_number":111,"box":{"x":70,"y":717,"width":831,"height":12}},{"id":"364eda24-a4ca-4947-9c7a-1d919f3c730e","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":111,"box":{"x":69,"y":733,"width":810,"height":11}},{"id":"ac7096fd-c299-4b45-8d23-aade3b4f1fb4","block_type":"box","text":"contracts will be held by the Fund’s custodian (or sub-custodian) in the Federal Reserve/Treasury book-entry system","page_number":111,"box":{"x":69,"y":748,"width":829,"height":11}},{"id":"a63202b6-d1bd-46c1-818e-c8689f345e1b","block_type":"box","text":"or by another authorized securities depository.","page_number":111,"box":{"x":69,"y":763,"width":329,"height":11}},{"id":"1b324fa4-5df7-4a28-a3c0-561061769528","block_type":"box","text":"In the event of default by the seller under a repurchase agreement construed to be a collateralized loan, the","page_number":111,"box":{"x":102,"y":785,"width":770,"height":12}},{"id":"f39c2f6e-a2ab-47b3-9e8d-20a0ff0ced9a","block_type":"box","text":"underlying securities are not owned by the Fund but only constitute collateral for the seller’s obligation to pay the","page_number":111,"box":{"x":69,"y":801,"width":805,"height":11}},{"id":"2128fa1c-0c41-46cc-884d-8973256fe92f","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":111,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"22eb957b-93ec-4435-b236-2d16b5d428c2","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":111,"box":{"x":69,"y":831,"width":778,"height":11}},{"id":"85b03577-b647-4c58-aea8-d9a0bcc1376e","block_type":"box","text":"applicable bankruptcy or other laws, a Fund’s ability to dispose of the underlying securities may be restricted. Finally,","page_number":111,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"970bbd51-88b5-4fba-b9b8-9e7edaa51dfc","block_type":"box","text":"it is possible that a Fund may not be able to substantiate its interest in the underlying securities. To minimize this","page_number":111,"box":{"x":70,"y":861,"width":810,"height":11}},{"id":"0b075422-25f5-4b11-a0ab-5999f2511237","block_type":"box","text":"risk, the securities underlying the repurchase agreement will be held by the applicable custodian at all times in an","page_number":111,"box":{"x":69,"y":876,"width":812,"height":11}},{"id":"6a395213-6080-42ac-9832-1e7a7d72eea2","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":111,"box":{"x":69,"y":891,"width":778,"height":12}},{"id":"51ca4d7f-a879-4e43-badc-6d965d7607d2","block_type":"box","text":"II-71","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0efc1286-7395-4975-acf0-2d4c2eff910d","block_type":"box","text":"NM1026U-5982643-111/241","page_number":111,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"c36c227e-11c3-4f70-892e-c6a23eca4c26","block_type":"box","text":"securities, a Fund may suffer a loss to the extent proceeds from the sale of the underlying securities are less than","page_number":112,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"aead75b1-3d22-4a64-97bb-dd29844c7129","block_type":"box","text":"the repurchase price.","page_number":112,"box":{"x":68,"y":60,"width":151,"height":11}},{"id":"c2f3fd92-adf4-4169-8213-9191ce2b70c7","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":112,"box":{"x":102,"y":82,"width":805,"height":12}},{"id":"1a139f83-dc6a-4c96-af68-8d98a06ce95d","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":112,"box":{"x":70,"y":98,"width":837,"height":11}},{"id":"06b49b69-1c1a-4c2d-a832-60cef2c1c280","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":112,"box":{"x":69,"y":113,"width":788,"height":11}},{"id":"1ad1cb8b-26ec-4261-8cdc-61b3e1e05104","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":112,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"360a9410-65a9-41ee-9ca9-f0a70928f27d","block_type":"box","text":"strategies without the repurchase obligation.","page_number":112,"box":{"x":69,"y":143,"width":317,"height":11}},{"id":"b0bd6b0c-2835-4984-a624-06132da87629","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":112,"box":{"x":101,"y":166,"width":782,"height":11}},{"id":"184c3055-d9c3-4209-b355-cccf4c8ad00a","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":112,"box":{"x":69,"y":181,"width":776,"height":11}},{"id":"d396bb4d-cce6-49fc-98cb-1e8975914659","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":112,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"a056658b-9788-4657-af34-72e88a19ee52","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":112,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"b67841c9-b6bb-4412-8de5-938b12d121f8","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":112,"box":{"x":68,"y":226,"width":825,"height":11}},{"id":"ea662821-2edb-4d94-b37a-3a49213e22ee","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (i.e., the position the Fund would normally be in if it were to hold,","page_number":112,"box":{"x":69,"y":241,"width":833,"height":11}},{"id":"93a758c8-9373-4d23-bee5-0ce44b776291","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":112,"box":{"x":70,"y":256,"width":813,"height":12}},{"id":"e1e19da1-0eca-461a-9914-ef96c53636cb","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":112,"box":{"x":68,"y":271,"width":816,"height":12}},{"id":"81d191bc-7122-4aa9-b716-01c4da5835ab","block_type":"box","text":"and income involved in the transaction.","page_number":112,"box":{"x":69,"y":287,"width":278,"height":9}},{"id":"03dbc698-3bee-44fd-9f6b-b0c324f85c7a","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":112,"box":{"x":102,"y":309,"width":800,"height":11}},{"id":"1eba6f9b-42cc-429a-90b6-06df2316c36d","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":112,"box":{"x":68,"y":324,"width":840,"height":12}},{"id":"e0de66f1-894e-452e-9b1c-285198ae14c1","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":112,"box":{"x":69,"y":339,"width":814,"height":12}},{"id":"05c36df4-de86-4f58-9dcb-f7a9cffb2d4c","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":112,"box":{"x":68,"y":355,"width":790,"height":11}},{"id":"1aba8429-4744-47c1-9523-7636ca945159","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":112,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"a4231290-9dbb-460f-87a9-b7251a07c188","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":112,"box":{"x":68,"y":385,"width":783,"height":11}},{"id":"2cbe3be7-fff7-4ad1-bbc0-a3257af37768","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":112,"box":{"x":69,"y":400,"width":821,"height":11}},{"id":"12d53e92-29cc-4298-9f7d-065b924d36bf","block_type":"box","text":"contracts or to realize amounts to be received under such agreements. The SEC has also finalized rules that will","page_number":112,"box":{"x":69,"y":415,"width":800,"height":11}},{"id":"43a65f40-3e0e-443e-aebd-563210d76b38","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":112,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"1853315e-0037-4636-8d35-7dedf88cebd8","block_type":"box","text":"Compliance with these rules is expected to be required by the middle of 2027. Although the impact of these rules on","page_number":112,"box":{"x":69,"y":445,"width":834,"height":12}},{"id":"9ec9ec98-086a-41e6-9901-34db62326994","block_type":"box","text":"the Funds is difficult to predict, they may reduce the availability or increase the costs of such transactions and may","page_number":112,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"0c15590c-45af-46d2-b2fc-063a5527ef0d","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":112,"box":{"x":69,"y":475,"width":279,"height":12}},{"id":"8a77e8f9-9895-4233-ae72-6a69fc776449","block_type":"box","text":"Restricted Securities.","page_number":112,"box":{"x":102,"y":498,"width":158,"height":9}},{"id":"7ddd60ca-0987-4f96-9fbb-f16c65410e81","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":112,"box":{"x":265,"y":498,"width":617,"height":11}},{"id":"5414ed77-6beb-4806-bb49-94ea5ec99f59","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":112,"box":{"x":69,"y":513,"width":801,"height":11}},{"id":"2b9e901e-4554-4475-a095-d79bc9a0b200","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":112,"box":{"x":69,"y":529,"width":808,"height":11}},{"id":"9fb7b87f-6f9f-4a95-96f7-1e190b2a4a87","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":112,"box":{"x":70,"y":544,"width":802,"height":11}},{"id":"6f778d16-b7a0-48cc-a0c8-39dab50482af","block_type":"box","text":"listed on an exchange nor traded in other established markets. In many cases, privately placed securities may not be","page_number":112,"box":{"x":70,"y":559,"width":834,"height":11}},{"id":"f07be709-2fc6-4210-9b32-dbe8552f105c","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":112,"box":{"x":68,"y":574,"width":825,"height":11}},{"id":"858e485d-cc1b-4425-a356-66c576051ea9","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":112,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"b41c40dc-8e15-4484-9ebe-66e0e71b57b2","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":112,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"986b6468-98bc-4e92-bf83-7dd435c7b386","block_type":"box","text":"are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that a","page_number":112,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"faf47c7a-3a63-4e4f-b664-cbcfedcd9ad0","block_type":"box","text":"Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be","page_number":112,"box":{"x":70,"y":634,"width":824,"height":12}},{"id":"44307be3-1e4d-41ed-96eb-5762ad5131e4","block_type":"box","text":"no assurance that a Fund will be able to realize the value of such restricted securities in a timely manner or at all. As","page_number":112,"box":{"x":69,"y":649,"width":834,"height":12}},{"id":"7d375503-c463-4204-b9ba-d0aff6e8ffd2","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":112,"box":{"x":69,"y":664,"width":769,"height":12}},{"id":"6faf143d-5707-406c-a7e3-b29e8e28e8c7","block_type":"box","text":"restricted securities may be deemed to be illiquid investments or less liquid investments and may be more difficult to","page_number":112,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"18c3c804-8b21-4355-9098-45a9a49284f5","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":112,"box":{"x":68,"y":695,"width":805,"height":11}},{"id":"7195d0bb-d0bf-4f3c-b3eb-286e04b2a649","block_type":"box","text":"transactions, the prices realized from the sales, due to lack of liquidity, could be less than those originally paid by the","page_number":112,"box":{"x":68,"y":710,"width":840,"height":11}},{"id":"9f327bb3-be65-4da3-b217-d567de467cbb","block_type":"box","text":"Fund or less than their fair market value. The amount of any discount may vary depending on the security type, the","page_number":112,"box":{"x":70,"y":725,"width":815,"height":11}},{"id":"82afab4c-932a-42f5-b477-3561f6656f22","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":112,"box":{"x":69,"y":740,"width":835,"height":11}},{"id":"6f510754-e1fa-4f1a-990b-b7716cfd093a","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":112,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"f55a2c23-5008-42d8-a63c-02405a83019d","block_type":"box","text":"listed may not be subject to the disclosure and other investor protection requirements that may be applicable if their","page_number":112,"box":{"x":70,"y":770,"width":830,"height":11}},{"id":"bb1b2fad-4e04-4d45-ab3c-385a0299db99","block_type":"box","text":"securities were publicly traded. If any privately placed securities held by a Fund are required to be registered under","page_number":112,"box":{"x":69,"y":785,"width":817,"height":12}},{"id":"8284b750-9472-4136-99d2-7ec3fb3c2054","block_type":"box","text":"the securities laws of one or more jurisdictions before being resold, the Fund may be required to bear the expenses","page_number":112,"box":{"x":68,"y":801,"width":825,"height":11}},{"id":"cf2f914d-8970-4a65-9a85-3ebadd7676d6","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":112,"box":{"x":69,"y":816,"width":777,"height":11}},{"id":"9fcd3e09-6f22-4d8c-9049-dc61815698f9","block_type":"box","text":"between the time the Fund decides to sell the security and the time it is actually permitted to sell the security under","page_number":112,"box":{"x":69,"y":831,"width":828,"height":11}},{"id":"419abc98-569c-4057-bb03-af435c68bf23","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":112,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"17df8533-a166-4852-b629-ddc6ff22bd86","block_type":"box","text":"obtain less favorable pricing terms than when it decided to sell the security. In addition, the Fund may be deemed to","page_number":112,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"502c0498-425f-450e-a622-46dec042cb3a","block_type":"box","text":"be an “underwriter” for purposes of the Securities Act when selling restricted securities. If so, the Fund may be liable","page_number":112,"box":{"x":69,"y":876,"width":836,"height":11}},{"id":"f920fbb9-89f8-4835-a249-1645dcc24e6c","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":112,"box":{"x":68,"y":891,"width":819,"height":12}},{"id":"cfa39075-e1ab-48eb-aa2c-f8601e234ba1","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":112,"box":{"x":70,"y":907,"width":822,"height":11}},{"id":"1f8b064c-008b-4869-9fd3-9750650139c3","block_type":"box","text":"II-72","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"49bf5559-b53f-4706-9583-ce86cc10ce08","block_type":"box","text":"NM1026U-5982643-112/241","page_number":112,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"08a757b2-47fc-47e4-b6bf-6f1de7521067","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":113,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"b3be7001-19f3-48b9-8d7f-9f7eb1e98e51","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":113,"box":{"x":70,"y":60,"width":780,"height":11}},{"id":"860347fd-fe8d-41f4-9be7-72e039a7cb43","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":113,"box":{"x":70,"y":75,"width":773,"height":11}},{"id":"d0b7ac6b-63f1-464d-b7c2-27dd094c0a01","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":113,"box":{"x":69,"y":90,"width":784,"height":11}},{"id":"a8139562-f077-44b1-959a-4d77836481b4","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":113,"box":{"x":69,"y":105,"width":816,"height":11}},{"id":"99642078-6e7d-43fb-8e3b-2da76ff14a9a","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":113,"box":{"x":69,"y":120,"width":828,"height":11}},{"id":"17468965-103c-48a4-9efd-f0f29c0bc950","block_type":"box","text":"operations of such issuers, and investments in securities of such issuers may involve a high degree of business and","page_number":113,"box":{"x":69,"y":135,"width":831,"height":12}},{"id":"1eab050a-ff53-4da7-88b8-3cb2ea8807b7","block_type":"box","text":"financial risk and may result in substantial losses to the Fund. Such issuers may also have limited product lines,","page_number":113,"box":{"x":68,"y":150,"width":804,"height":12}},{"id":"21fb7e1e-e30b-483d-a371-6903713ceb74","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":113,"box":{"x":69,"y":166,"width":647,"height":11}},{"id":"49b1cee9-2efc-4467-9ca3-622f5eb42ce1","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":113,"box":{"x":102,"y":188,"width":714,"height":11}},{"id":"cb54ada3-e6e8-4d99-a259-9283bdb691f7","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":113,"box":{"x":70,"y":204,"width":823,"height":11}},{"id":"5fa77c70-02cb-4673-8a85-c2375a940b15","block_type":"box","text":"Fund’s net assets grow from new or additional investments made in the Fund by other shareholders. The issuer of a","page_number":113,"box":{"x":70,"y":218,"width":826,"height":12}},{"id":"a533da0b-984f-40d5-aa81-e106e621b2b4","block_type":"box","text":"private placement may later register those shares for public sale in an IPO, but there is no guarantee that an IPO will","page_number":113,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"4cfe59ce-3876-48c6-ba7b-fc63ce93f215","block_type":"box","text":"ever be completed. Even after an IPO, there may be a limited trading market for securities of that issuer, including","page_number":113,"box":{"x":69,"y":249,"width":812,"height":11}},{"id":"b7f43a64-9bac-4f3a-994d-d557dc1177bc","block_type":"box","text":"any direct investment by a Fund, or the Fund may be subject to contractual limitations on its ability to resell its","page_number":113,"box":{"x":69,"y":264,"width":787,"height":11}},{"id":"ee16badd-ba56-4975-b566-083dffbdd95c","block_type":"box","text":"existing securities following an IPO. The inability of an applicable issuer of a restricted security to complete an IPO or","page_number":113,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"34f1a1fc-9728-4db9-9803-7f491548d075","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":113,"box":{"x":69,"y":294,"width":759,"height":11}},{"id":"3959e6cf-9657-48a5-a9bb-bb24cc53b847","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":113,"box":{"x":70,"y":309,"width":833,"height":11}},{"id":"71d8f2ad-7b50-4ba6-aa28-a28ed1de8a58","block_type":"box","text":"such securities, a Fund may obtain access to material nonpublic information, which may restrict the Fund’s ability to","page_number":113,"box":{"x":69,"y":324,"width":828,"height":11}},{"id":"a895374b-dd53-4839-916f-c80494e95a8b","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":113,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"9f91448f-828c-467f-9abe-7fc9edcf1233","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":113,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"e1d80117-31e0-453b-acfc-e4323e6b5051","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":113,"box":{"x":69,"y":370,"width":816,"height":11}},{"id":"8aa120b8-7d22-455c-ace7-3edb875f29cf","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":113,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"a57f7bb9-7da2-41b2-930e-9a070f8a098f","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":113,"box":{"x":69,"y":400,"width":768,"height":11}},{"id":"b0081c00-0e84-4990-8d65-4e9428053dbc","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":113,"box":{"x":70,"y":415,"width":815,"height":11}},{"id":"cd9b53f9-778c-4559-b267-dced902e8015","block_type":"box","text":"especially as that Fund grows in size.","page_number":113,"box":{"x":69,"y":430,"width":264,"height":11}},{"id":"7fd2ea3e-607b-4bf9-9293-f29be7f3ea6b","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":113,"box":{"x":101,"y":453,"width":762,"height":11}},{"id":"4fe5bfa8-1895-42ab-be80-e4f71812540f","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":113,"box":{"x":69,"y":468,"width":795,"height":11}},{"id":"aeb3445a-15ca-4f5b-9b08-e56a2b79fd27","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":113,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"e2794c51-61bc-4d02-9470-c1573f01bafa","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":113,"box":{"x":70,"y":498,"width":755,"height":11}},{"id":"4e5f0df8-abbc-46ab-88e7-04cc7f3d6412","block_type":"box","text":"determining the fair value of investments that do not have a readily available market value, the fair value of a Fund’s","page_number":113,"box":{"x":69,"y":513,"width":830,"height":12}},{"id":"96ea254d-c9e9-437f-ad42-88842a601968","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":113,"box":{"x":70,"y":528,"width":835,"height":12}},{"id":"492c2b45-9047-48ff-abae-f0b96d273b9a","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":113,"box":{"x":68,"y":543,"width":766,"height":12}},{"id":"3326c2f8-3750-450f-b0a5-275864143963","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":113,"box":{"x":69,"y":559,"width":792,"height":11}},{"id":"eb49a77d-ec2f-4cfe-a698-92c10529d82e","block_type":"box","text":"Fund’s shareholder transactions being effected at a NAV that does not accurately reflect the underlying value of the","page_number":113,"box":{"x":70,"y":574,"width":821,"height":11}},{"id":"2844dcbe-4337-4c01-a178-47dc1fb575ff","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":113,"box":{"x":70,"y":589,"width":771,"height":11}},{"id":"3d065e18-5953-4b5f-8c05-331731f3f4d8","block_type":"box","text":"shareholder arbitrage. The values used by the Fund to price its restricted securities may also differ from those used","page_number":113,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"7e429dae-8165-47b1-aff8-575a3de79c95","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":113,"box":{"x":69,"y":619,"width":790,"height":11}},{"id":"57f3e9d6-37e2-484f-99a5-c8e0fb36d14e","block_type":"box","text":"changes in the market environment and other events on the fair values of a Fund’s investments that have no readily","page_number":113,"box":{"x":69,"y":634,"width":828,"height":12}},{"id":"7aadb629-ecc8-450c-98e9-a820f114c15a","block_type":"box","text":"available market values may differ from the impact of such changes on the readily available market values for the","page_number":113,"box":{"x":69,"y":649,"width":810,"height":12}},{"id":"58e7ad30-364e-44c7-8c7f-ede2e0dfde38","block_type":"box","text":"Fund’s other investments. A Fund’s NAV could be adversely affected if the Fund’s determinations regarding the fair","page_number":113,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"16c246e1-5dbb-4dfb-a69f-b4c1da26a628","block_type":"box","text":"value of the Fund’s investments were materially higher than the investment’s actual market or fair value or the values","page_number":113,"box":{"x":68,"y":680,"width":839,"height":11}},{"id":"1ee5fb7b-f528-4a29-adfd-ac3a95b0085e","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":113,"box":{"x":68,"y":695,"width":514,"height":11}},{"id":"74166578-7981-4a14-b30b-4fd9caf2cdae","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":113,"box":{"x":102,"y":718,"width":385,"height":10}},{"id":"1937eaeb-d012-4a1d-8d49-384c3ac30379","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":113,"box":{"x":102,"y":740,"width":246,"height":11}},{"id":"a932abee-5cc3-40ad-a88c-d978ec1e3ea1","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":113,"box":{"x":354,"y":740,"width":548,"height":11}},{"id":"8868f540-45ca-4afb-b2a0-fd36159d5832","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":113,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"ea266de4-b7ef-4e94-8d1c-e465f8a9e6c0","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":113,"box":{"x":68,"y":771,"width":793,"height":11}},{"id":"47ca3249-64cc-4f66-bee2-c1ffe84c2d24","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":113,"box":{"x":69,"y":785,"width":784,"height":12}},{"id":"bfb1feda-eb76-47ec-aba2-ae95e42e9a5c","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":113,"box":{"x":70,"y":801,"width":591,"height":11}},{"id":"89241a7d-3db8-4de0-8080-79ace9f84d9f","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":113,"box":{"x":101,"y":823,"width":730,"height":12}},{"id":"e3b874a4-42bb-4ac1-b4a2-fcdb1dc72a13","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":113,"box":{"x":70,"y":839,"width":822,"height":11}},{"id":"38ccd074-0485-487e-878a-3b80ebf47f68","block_type":"box","text":"of the proceeds will be less than the interest expense, (ii) the market value of the securities retained in lieu of sale","page_number":113,"box":{"x":69,"y":853,"width":821,"height":11}},{"id":"ad53a43d-2c84-4731-bca8-2c4d32d2ea87","block_type":"box","text":"by a Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase, (iii) the","page_number":113,"box":{"x":69,"y":869,"width":801,"height":11}},{"id":"f21f7522-3863-4f02-acce-92d7716ece29","block_type":"box","text":"market value of the securities sold will decline below the price at which the Fund is required to repurchase them and","page_number":113,"box":{"x":69,"y":884,"width":830,"height":11}},{"id":"a5d5fe74-99e9-40c6-9cc4-caa9a48e7f5e","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":113,"box":{"x":69,"y":899,"width":354,"height":11}},{"id":"b8e6cae1-5e0b-4a30-b246-7239e3a15a3f","block_type":"box","text":"II-73","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"37216e0c-6cbb-440e-baca-742d9eff5600","block_type":"box","text":"NM1026U-5982643-113/241","page_number":113,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f34d139c-ee9b-4685-88c2-350ec39c36e0","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":114,"box":{"x":102,"y":45,"width":769,"height":11}},{"id":"1f51617b-17af-490f-9ab3-ce2b1922b519","block_type":"box","text":"insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce a","page_number":114,"box":{"x":70,"y":60,"width":815,"height":11}},{"id":"322bdec9-f8ab-4aa2-9018-836f08b483e3","block_type":"box","text":"Fund’s obligations to repurchase the securities and the Fund’s use of the proceeds of the reverse repurchase","page_number":114,"box":{"x":70,"y":75,"width":782,"height":11}},{"id":"edfce9b2-1073-4784-afc6-4e2a54b3f0b3","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":114,"box":{"x":69,"y":90,"width":449,"height":11}},{"id":"838f1a61-4252-4576-a20c-519a5a87f286","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":114,"box":{"x":102,"y":113,"width":794,"height":11}},{"id":"70b4a386-bd3a-47ef-9e9d-b94e3490d696","block_type":"box","text":"similar financing transactions (e.g., recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":114,"box":{"x":69,"y":128,"width":841,"height":11}},{"id":"15ca5bb2-dc01-406b-a922-d539ece5b16a","block_type":"box","text":"the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the","page_number":114,"box":{"x":68,"y":143,"width":813,"height":11}},{"id":"a89888f3-f073-4341-84d3-5739a0dde556","block_type":"box","text":"Fund either (i) complies with the 300% asset coverage ratio with respect to all such transactions and any other","page_number":114,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"f351f23a-9639-4ec6-93c2-2333394576a5","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":114,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"4b0b8b73-e218-46ce-b923-a16df4794143","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":114,"box":{"x":70,"y":188,"width":824,"height":12}},{"id":"438f5cba-96ec-4055-8d1d-cdfe0aee12e7","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":114,"box":{"x":68,"y":203,"width":758,"height":12}},{"id":"36e9052f-b0db-47aa-8c48-c9433b935058","block_type":"box","text":"agreements, to be centrally cleared. Compliance with these rules is expected to be required by the middle of 2027.","page_number":114,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"448644a7-2a6c-49b1-aeee-d176f00652e0","block_type":"box","text":"Although the impact of these rules on the Funds is difficult to predict, they may reduce the availability or increase the","page_number":114,"box":{"x":68,"y":234,"width":838,"height":11}},{"id":"000ba642-2c18-486c-bb8c-3a14b987e557","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":114,"box":{"x":69,"y":249,"width":538,"height":11}},{"id":"69da1f60-db98-484f-a8f5-8d09ecb2b01b","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":114,"box":{"x":101,"y":272,"width":780,"height":11}},{"id":"320b552c-7b6e-47f1-9943-778db4b10a92","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":114,"box":{"x":69,"y":286,"width":838,"height":12}},{"id":"0179ae71-1d38-4682-a9a6-07b289fef45f","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":114,"box":{"x":68,"y":302,"width":775,"height":11}},{"id":"5daa9200-fc85-45c6-b3dd-a258e15de02a","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":114,"box":{"x":68,"y":317,"width":754,"height":11}},{"id":"f074f378-6a76-4974-9fdd-a32c68a1983d","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":114,"box":{"x":69,"y":332,"width":818,"height":11}},{"id":"eaed5168-3445-4d75-8465-4156d96a1019","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":114,"box":{"x":68,"y":347,"width":783,"height":11}},{"id":"5e26d910-9024-4f8d-a55e-3e84fc017d5f","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":114,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"495e97c0-f98c-43a6-9451-a3dae2783652","block_type":"box","text":"amounts to be received under such agreements.","page_number":114,"box":{"x":69,"y":377,"width":345,"height":12}},{"id":"8cd29e4e-7cbf-4308-a119-0fe29aecf47c","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":114,"box":{"x":102,"y":400,"width":316,"height":11}},{"id":"f6989687-9a89-4ef2-b423-b348edac0cad","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":114,"box":{"x":424,"y":400,"width":481,"height":11}},{"id":"b6287d1b-580c-4d2d-a039-c5a233ab01da","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":114,"box":{"x":68,"y":415,"width":822,"height":11}},{"id":"b2da761c-8ffe-440a-9a2e-35b293760668","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":114,"box":{"x":69,"y":430,"width":776,"height":11}},{"id":"29d7e3cf-c434-4397-a6ed-fcbcdd66e14a","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":114,"box":{"x":69,"y":445,"width":817,"height":12}},{"id":"74dc33cf-6058-46cc-b1f4-33f1c243e9c2","block_type":"box","text":"lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the","page_number":114,"box":{"x":70,"y":460,"width":833,"height":12}},{"id":"8edd5a16-d749-4a4c-a7ee-98d53afff255","block_type":"box","text":"rights’ and warrants’ expiration. Also, the purchase of rights and/or warrants involves the risk that the effective price","page_number":114,"box":{"x":69,"y":475,"width":835,"height":12}},{"id":"4d4f176a-b061-4287-8a4c-eb5cd3f0b79e","block_type":"box","text":"paid for the right and/or warrant added to the subscription price of the related security may exceed the value of the","page_number":114,"box":{"x":70,"y":491,"width":821,"height":11}},{"id":"3840ed81-7dac-44cb-9000-ff30d5b457af","block_type":"box","text":"subscribed security’s market price such as when there is no movement in the level of the underlying security. Buying","page_number":114,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"9f4488f0-f249-4265-8a26-00028da30e58","block_type":"box","text":"a warrant does not make the Fund a shareholder of the underlying stock. The warrant holder has no voting or","page_number":114,"box":{"x":69,"y":521,"width":777,"height":11}},{"id":"e698ffb5-233d-4c28-b90a-59dd1ef9bf08","block_type":"box","text":"dividend rights with respect to the underlying stock. A warrant does not carry any right to assets of the issuer, and for","page_number":114,"box":{"x":69,"y":536,"width":839,"height":11}},{"id":"1f268b21-83c4-43ba-a11e-e3dd32e5557f","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":114,"box":{"x":68,"y":551,"width":708,"height":11}},{"id":"9f3e2ecd-f8de-4335-b86e-fc4c46bbb911","block_type":"box","text":"Rule 144A Securities.","page_number":114,"box":{"x":102,"y":574,"width":159,"height":9}},{"id":"9068efad-b1af-4471-9bef-4309495be038","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":114,"box":{"x":266,"y":574,"width":560,"height":11}},{"id":"cbd25bc2-8f19-4676-9166-3039dd3da896","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":114,"box":{"x":70,"y":589,"width":741,"height":11}},{"id":"0fdf2b88-e9f2-40e7-99af-3f32665dbc81","block_type":"box","text":"Securities Lending.","page_number":114,"box":{"x":101,"y":612,"width":139,"height":11}},{"id":"bfcf2aed-8e3f-469c-b2ba-c52a379c8826","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":114,"box":{"x":247,"y":612,"width":645,"height":11}},{"id":"c1ee27ec-88d9-47d8-99f7-6e7936c9595c","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":114,"box":{"x":69,"y":627,"width":825,"height":11}},{"id":"ff25bc57-997e-4d8c-9a34-dc8b8b958a2f","block_type":"box","text":"an amount at least equal to the current market value of the securities loaned. No securities loan shall be made on","page_number":114,"box":{"x":69,"y":642,"width":817,"height":11}},{"id":"5aa258a0-7c9a-4367-8d70-c960d155bfc8","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":114,"box":{"x":69,"y":657,"width":831,"height":11}},{"id":"48a90832-a60f-4972-a1f6-3b0d09437990","block_type":"box","text":"the value of such Fund’s total assets (including the value of the collateral received). A Fund may terminate a loan at","page_number":114,"box":{"x":68,"y":672,"width":827,"height":11}},{"id":"5885175f-dc65-463b-a358-4c4864edae51","block_type":"box","text":"any time and obtain the return of the securities loaned. Each Fund receives, by way of substitute payment, the value","page_number":114,"box":{"x":69,"y":687,"width":829,"height":11}},{"id":"51324045-52da-43a0-84ed-1a74d13b4086","block_type":"box","text":"of any interest or cash or non-cash distributions paid on the loaned securities that it would have otherwise received if","page_number":114,"box":{"x":69,"y":702,"width":838,"height":11}},{"id":"83235d7d-463b-4da1-b572-ff51c3b660f9","block_type":"box","text":"the securities were not on loan.","page_number":114,"box":{"x":68,"y":718,"width":225,"height":8}},{"id":"fa0c9e79-f12d-45a5-8290-d1c195e7a290","block_type":"box","text":"With respect to loans that are collateralized by cash, the borrower may be entitled to receive a fee based on the","page_number":114,"box":{"x":101,"y":740,"width":799,"height":11}},{"id":"4f5755ba-0f25-4811-9558-4bb022dbccb2","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":114,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"0bc02bd7-6c41-4424-90ce-3bebac0c03bc","block_type":"box","text":"reinvestment of cash collateral and the fee paid to the borrower. In the case of collateral other than cash, a Fund is","page_number":114,"box":{"x":69,"y":770,"width":824,"height":11}},{"id":"a35c24ce-ae94-40c2-891f-f2ae904fc8c2","block_type":"box","text":"compensated by a fee paid by the borrower equal to a percentage of the market value of the loaned securities. Any","page_number":114,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"3d3a8fa4-3c03-45ce-b0e0-e71dcc131a32","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":114,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"43f62b1f-d388-4201-9d14-0486c76faf53","block_type":"box","text":"instruments either directly on behalf of the Fund or through one or more joint accounts or money market funds,","page_number":114,"box":{"x":70,"y":816,"width":789,"height":11}},{"id":"94fbc423-4791-4b83-8256-e40097b7b27e","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":114,"box":{"x":70,"y":831,"width":643,"height":11}},{"id":"b9092715-bb6e-4184-abb3-591ecb880841","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (i.e., the risk of losses resulting","page_number":114,"box":{"x":102,"y":853,"width":791,"height":12}},{"id":"b44741a8-b7aa-4983-b6b4-0a3b6c751c94","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (i.e., the risk of a mismatch between the return","page_number":114,"box":{"x":68,"y":869,"width":833,"height":11}},{"id":"3fedd02a-8fda-4385-b670-4fde67bd4caa","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":114,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"0f89a566-17f7-4f61-9d64-6374eb8b2fa8","block_type":"box","text":"i.e.","page_number":114,"box":{"x":865,"y":884,"width":20,"height":9}},{"id":"b3a3675d-e133-48a2-9a23-722ad4784f6f","block_type":"box","text":",","page_number":114,"box":{"x":888,"y":891,"width":2,"height":3}},{"id":"bea47dd8-9c8c-466e-8589-f6b40745ad47","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":114,"box":{"x":68,"y":899,"width":788,"height":11}},{"id":"12a00f3d-49e6-448d-aecd-027d0aec64c4","block_type":"box","text":"II-74","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c27bc806-c8e0-493a-85bb-41a1e398b699","block_type":"box","text":"NM1026U-5982643-114/241","page_number":114,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"e63eadf6-3f76-41a1-92a9-2e314ba6fd3f","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":115,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"5b59d87e-5ddf-4fa2-8d48-5074b20a2153","block_type":"box","text":"market risks (including the risk that market events, including but not limited to corporate actions, could lead a Fund","page_number":115,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"2580ca33-3773-46c8-9749-e56a74495755","block_type":"box","text":"to lend securities that are trading at a premium due to increased demand, or to recall loaned securities or to lend","page_number":115,"box":{"x":68,"y":75,"width":811,"height":11}},{"id":"1caca8bc-994a-480a-847f-e230c1bf89f6","block_type":"box","text":"less or not at all, which could lead to reduced securities lending revenue). If a Fund were to lend out securities that","page_number":115,"box":{"x":70,"y":90,"width":820,"height":11}},{"id":"1610d88b-f6af-4490-b759-9dd1f5ed6ef8","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":115,"box":{"x":69,"y":105,"width":790,"height":11}},{"id":"a3f07335-1733-4e7a-8d51-bb212370e468","block_type":"box","text":"investment adviser, the benefit the Fund would receive in respect of committing to such election may or may not be","page_number":115,"box":{"x":70,"y":120,"width":820,"height":12}},{"id":"a6f6fb8a-f408-40e9-a61c-170d33fb96a8","block_type":"box","text":"less than the benefit the Fund would have received from making a different election in such corporate action. If a","page_number":115,"box":{"x":70,"y":135,"width":805,"height":12}},{"id":"58600c9b-9407-4399-a8d9-a39e2dc82db8","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":115,"box":{"x":69,"y":150,"width":816,"height":12}},{"id":"ed124a80-7565-4c88-bde6-6f5640be0896","block_type":"box","text":"collateral or in recovering the loaned securities, or to a possible loss of rights in the collateral. In the event a","page_number":115,"box":{"x":69,"y":166,"width":775,"height":11}},{"id":"26e6294c-efe8-4c92-8cfe-b3e354849f05","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":115,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"4e632efb-ff4f-4141-81e4-7a38eae358a4","block_type":"box","text":"may be impacted, or the Fund may experience losses if the proceeds received from liquidating the collateral do not at","page_number":115,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"ee74d619-fdb6-4c19-907b-76d702720664","block_type":"box","text":"least equal the value of the loaned security at the time the collateral is liquidated, plus the transaction costs incurred","page_number":115,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"b765da03-e03d-4a23-aa29-a8590899ceb9","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":115,"box":{"x":70,"y":226,"width":808,"height":11}},{"id":"8be43f80-965f-4222-8d1c-0de96b6d74f3","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":115,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"f55a1850-6051-43ec-8dd6-cdd42ea0d522","block_type":"box","text":"payments received by a Fund representing dividends paid on securities loaned out by the Fund will not be considered","page_number":115,"box":{"x":70,"y":257,"width":832,"height":11}},{"id":"f15bc18a-9e6f-4069-8f02-b29d746d354d","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":115,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"96c99c9d-acc7-4755-ab82-5382505e6d25","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":115,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"981b12ac-c0f0-473d-8f99-417b7c06d737","block_type":"box","text":"REIT securities loaned out by the Fund will not be considered qualified REIT dividends, and distributions by the Fund","page_number":115,"box":{"x":70,"y":302,"width":823,"height":11}},{"id":"8441a000-e4fc-4137-b25f-10f23eac8857","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":115,"box":{"x":69,"y":317,"width":812,"height":11}},{"id":"bcf88dd9-e63b-41be-85a2-2d281a4864aa","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":115,"box":{"x":70,"y":332,"width":814,"height":11}},{"id":"64b46c69-ed67-4300-a530-71980452bb6d","block_type":"box","text":"will take into account the tax effects on shareholders caused by these differences in connection with a Fund’s","page_number":115,"box":{"x":68,"y":347,"width":787,"height":11}},{"id":"84a89dc1-346e-4034-8a5b-5380049b7cf0","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":115,"box":{"x":69,"y":362,"width":828,"height":11}},{"id":"7bfd80f0-e033-4254-96a5-b338d7d08f9c","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":115,"box":{"x":70,"y":377,"width":809,"height":12}},{"id":"cde47617-e2dc-4da4-bb78-2535075f2d1d","block_type":"box","text":"regulations, that may impact the regulatory or tax treatment of loaned securities and could, for example, result in a","page_number":115,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"7a9159d3-cdb6-4a93-800a-dc49b072e28a","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":115,"box":{"x":69,"y":407,"width":731,"height":12}},{"id":"e257d0ed-9456-4277-98a8-1a9e0bb8f039","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":115,"box":{"x":102,"y":430,"width":800,"height":11}},{"id":"2b38263d-e895-4f56-9ef7-be3249ea4f61","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":115,"box":{"x":68,"y":445,"width":802,"height":12}},{"id":"517d6521-2d85-4852-b912-2c142970fe09","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":115,"box":{"x":69,"y":460,"width":783,"height":12}},{"id":"b02fa886-1121-4f86-b531-eb0e0db7bf9a","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":115,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"d6eb82f3-e2ff-45d0-955e-c45270f11a68","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":115,"box":{"x":70,"y":491,"width":747,"height":11}},{"id":"50cd3563-87fc-4a81-839f-198c1ae25913","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":115,"box":{"x":69,"y":506,"width":806,"height":11}},{"id":"27910855-f9cc-410e-bdd7-6cfabdf153d9","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":115,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"2ca5c0ad-bee8-44ca-bdb7-a8ab94725d2f","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":115,"box":{"x":69,"y":536,"width":839,"height":11}},{"id":"8b6fb431-f9ba-48c1-971d-becf0ada5c3b","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":115,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"e3a0696b-6b23-4f94-b778-f1bb83115ed2","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":115,"box":{"x":69,"y":566,"width":794,"height":11}},{"id":"bc9288a4-6750-4273-b9b2-6e419132b9a6","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":115,"box":{"x":69,"y":581,"width":371,"height":12}},{"id":"4963184b-8f02-4957-a31e-8ec188492daf","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":115,"box":{"x":101,"y":604,"width":753,"height":11}},{"id":"ee1e796b-7f82-4d2f-a9ec-1f9d4e5cca39","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":115,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"6ecfa0ed-8bd9-4c20-b412-2d823b1bbdd7","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":115,"box":{"x":69,"y":634,"width":784,"height":11}},{"id":"66792d12-5c3d-4207-8f06-16ee5bce5fb8","block_type":"box","text":"although in response to the outcome of a legal challenge against the rule, the SEC may amend the rule and/or delay","page_number":115,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"6926fd41-b681-4ec9-9f40-b160aedd5abd","block_type":"box","text":"the current expected compliance date.","page_number":115,"box":{"x":68,"y":665,"width":273,"height":10}},{"id":"00a86206-5eb0-48d1-8bed-6ae11110b28d","block_type":"box","text":"Short Sales.","page_number":115,"box":{"x":101,"y":687,"width":89,"height":9}},{"id":"aa99db0b-46fd-45e9-87ba-79fa5848e685","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":115,"box":{"x":196,"y":687,"width":696,"height":11}},{"id":"4f93b768-0390-430b-8213-564b2f54d536","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":115,"box":{"x":68,"y":702,"width":821,"height":11}},{"id":"26d14170-8c63-4268-bbb6-29852f05daac","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":115,"box":{"x":69,"y":717,"width":778,"height":12}},{"id":"2b00a0e5-c037-49cb-a349-7a6316937025","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":115,"box":{"x":70,"y":732,"width":831,"height":12}},{"id":"77faf96b-c5a1-4cac-8988-650ca517fcef","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":115,"box":{"x":69,"y":748,"width":837,"height":11}},{"id":"840620f5-97cc-461e-a93c-936d0efb790f","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":115,"box":{"x":68,"y":763,"width":828,"height":11}},{"id":"d53da44e-68eb-468c-be0f-47dfc4baf77f","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":115,"box":{"x":70,"y":778,"width":829,"height":11}},{"id":"05a65fb3-7983-468e-b3ce-cef84c02adf6","block_type":"box","text":"securities to the lender of the securities.","page_number":115,"box":{"x":69,"y":793,"width":289,"height":9}},{"id":"5c6bdf22-f0db-4ff5-901f-0bcdb95ea305","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":115,"box":{"x":101,"y":816,"width":772,"height":11}},{"id":"8d946daa-8eea-4868-bd72-3213785c852a","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":115,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"37d08862-fd19-4ed7-aef2-b732f6c47344","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":115,"box":{"x":69,"y":846,"width":801,"height":11}},{"id":"a926508a-5263-47eb-91a5-8d180a751e7b","block_type":"box","text":"extent that the value of both collateral deposits in the aggregate is at all times equal to at least 100% of the current","page_number":115,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"304c421d-a371-471f-b4e8-cda225767042","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":115,"box":{"x":69,"y":876,"width":839,"height":11}},{"id":"45155e4f-fa1b-4dbc-8d1c-2378696b2971","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":115,"box":{"x":69,"y":891,"width":770,"height":12}},{"id":"b1350a63-8707-4915-b86f-e7cbcf1f06b3","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":115,"box":{"x":70,"y":907,"width":568,"height":11}},{"id":"272a148b-a60a-41f0-a5f1-483074e25337","block_type":"box","text":"II-75","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5d619e8f-4859-4509-a06c-fd0db171dce3","block_type":"box","text":"NM1026U-5982643-115/241","page_number":115,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"eeba5de0-7624-407a-8ad9-f0c1b34235a7","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":116,"box":{"x":102,"y":45,"width":806,"height":11}},{"id":"6d3f35e4-b02d-43e5-96d7-9926430eb7ae","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":116,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"e83a2a92-4d2a-4344-a668-9b0821ec160f","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":116,"box":{"x":68,"y":75,"width":819,"height":11}},{"id":"a1408406-020e-4ddb-93c2-31dd27587316","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":116,"box":{"x":69,"y":90,"width":758,"height":11}},{"id":"1565c002-eafc-420c-92f8-c7de4b8e6162","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":116,"box":{"x":69,"y":105,"width":817,"height":11}},{"id":"d50f51d1-cd9f-4080-8291-83ac1bad9e71","block_type":"box","text":"sale if the security declines in price between those dates. There can be no assurance that a Fund will be able to","page_number":116,"box":{"x":69,"y":120,"width":800,"height":11}},{"id":"cc4c07e8-e02a-4e97-b75a-4f2ce394be6b","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":116,"box":{"x":69,"y":136,"width":818,"height":11}},{"id":"649c3516-4ba3-4917-9ca2-da1c8eb79777","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":116,"box":{"x":68,"y":150,"width":821,"height":12}},{"id":"e486125d-dd6b-4b0c-b4fa-350249ed4c02","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":116,"box":{"x":69,"y":166,"width":640,"height":11}},{"id":"2b693359-04f5-4200-8387-910620dc5ad8","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":116,"box":{"x":101,"y":188,"width":673,"height":12}},{"id":"95dd6a26-61d1-46db-9520-af5582895368","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":116,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"65a284cd-1985-42fe-ab83-1bf5df56373f","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":116,"box":{"x":69,"y":226,"width":791,"height":11}},{"id":"6f8b3af9-9d1e-4fbe-926b-cc3f19e0ba38","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":116,"box":{"x":70,"y":241,"width":489,"height":11}},{"id":"4b736247-67a9-4f6b-b632-b892efd77d9d","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":116,"box":{"x":102,"y":264,"width":745,"height":11}},{"id":"3c7c0c08-eadf-42e6-9b12-9349a1398828","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":116,"box":{"x":69,"y":279,"width":793,"height":11}},{"id":"ff74496d-4b36-486c-9ff9-d2ff2427a952","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":116,"box":{"x":69,"y":294,"width":796,"height":11}},{"id":"ebabacea-dcc8-44e3-bccf-2906df1a1e20","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":116,"box":{"x":70,"y":309,"width":766,"height":11}},{"id":"a2974964-8d47-4f29-b2a2-96614d723c69","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":116,"box":{"x":70,"y":324,"width":754,"height":12}},{"id":"29401e35-71b2-4166-8140-f4c64bd95281","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":116,"box":{"x":67,"y":339,"width":800,"height":12}},{"id":"22cbedc8-a7c0-4e45-b399-84116cca4280","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":116,"box":{"x":69,"y":355,"width":823,"height":11}},{"id":"5e1e8b3c-5562-46eb-b9a1-3c9263aa2f3a","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":116,"box":{"x":69,"y":370,"width":782,"height":11}},{"id":"ae16a52a-60ef-4486-ae5f-80e214e4f454","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":116,"box":{"x":69,"y":385,"width":460,"height":11}},{"id":"eb779407-ba57-490a-a2e3-9c8fb74d7d13","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":116,"box":{"x":101,"y":408,"width":293,"height":10}},{"id":"c400eaaa-73ec-4f85-8d4d-a72b28a707c9","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":116,"box":{"x":400,"y":408,"width":504,"height":11}},{"id":"8fea518f-dd0b-4a0f-8ac8-b9b2ceb0706e","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":116,"box":{"x":69,"y":423,"width":791,"height":11}},{"id":"2ecd268a-821a-43bb-994f-3ec659d57003","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":116,"box":{"x":70,"y":438,"width":793,"height":11}},{"id":"05cfcdd1-92cc-461a-9508-337d403450d2","block_type":"box","text":"publicly traded company that raises investment capital via an IPO for the purpose of identifying and acquiring one or","page_number":116,"box":{"x":70,"y":453,"width":824,"height":11}},{"id":"9e4744d1-dbf4-4b8f-b073-f7f26ad6fb11","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":116,"box":{"x":69,"y":468,"width":821,"height":11}},{"id":"0d42bf71-9889-483a-9a02-87df5f0146bb","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":116,"box":{"x":69,"y":483,"width":768,"height":11}},{"id":"ce450026-0aea-4cd6-814e-c01b28b5e7b9","block_type":"box","text":"percentage (typically 20%) of the SPAC’s outstanding common stock upon completion of the IPO. At the time a SPAC","page_number":116,"box":{"x":70,"y":498,"width":826,"height":11}},{"id":"8e85b2fe-93f2-4e1e-96e0-49af0f5904bf","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":116,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"f5c1152c-0c47-4dc2-b9ba-88a9f38b5a3b","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":116,"box":{"x":70,"y":529,"width":797,"height":11}},{"id":"45bee160-1f06-49a9-b616-f5fc0cd76204","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":116,"box":{"x":69,"y":543,"width":795,"height":12}},{"id":"259e5a34-6255-4275-bc42-6d48a94572c3","block_type":"box","text":"within a pre-established period of time, the invested funds are returned to the SPAC’s public shareholders, the","page_number":116,"box":{"x":68,"y":559,"width":788,"height":11}},{"id":"87ddb0ae-8475-431b-a1a2-811e8585c9d9","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":116,"box":{"x":68,"y":574,"width":794,"height":11}},{"id":"ab210bc5-5951-4132-9ce3-cef236189eeb","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":116,"box":{"x":69,"y":589,"width":820,"height":11}},{"id":"7d08e7eb-f045-4a84-ad9c-ba49893c72ac","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":116,"box":{"x":68,"y":604,"width":815,"height":11}},{"id":"4bf9912b-f8e3-4b06-a230-f0355fd35a87","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":116,"box":{"x":70,"y":619,"width":802,"height":11}},{"id":"8e895bb9-ae9b-482b-987b-e83f2512093f","block_type":"box","text":"There is no guarantee that the SPACs in which a Fund invests will complete an acquisition or that any acquisitions","page_number":116,"box":{"x":68,"y":634,"width":812,"height":12}},{"id":"3612e943-1089-4cc0-a92b-8f19d86093e9","block_type":"box","text":"completed by the SPACs in which the Fund invests will be profitable. Some SPACs may pursue acquisitions only within","page_number":116,"box":{"x":69,"y":649,"width":838,"height":12}},{"id":"6532cbde-2e16-45e2-ab1e-50282540d56a","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":116,"box":{"x":69,"y":664,"width":806,"height":12}},{"id":"2c94eb2d-d19e-475e-aa6a-f9feb42cfcd4","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":116,"box":{"x":69,"y":680,"width":828,"height":11}},{"id":"d4cde570-d516-48aa-b24e-fc60b6ab3b0f","block_type":"box","text":"Standby Commitment Agreements.","page_number":116,"box":{"x":101,"y":702,"width":255,"height":11}},{"id":"a4b92369-5c00-4977-8cb4-d82b54fc2666","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":116,"box":{"x":362,"y":702,"width":511,"height":12}},{"id":"34f158b5-b3a0-432c-8e86-883745a4878d","block_type":"box","text":"time, to purchase a stated amount of securities that may be issued and sold to that Fund at the option of the issuer.","page_number":116,"box":{"x":68,"y":717,"width":834,"height":12}},{"id":"bc70d679-9dce-4c12-bd7c-506794563a95","block_type":"box","text":"The price of the security is fixed at the time of the commitment. At the time of entering into the agreement, a Fund is","page_number":116,"box":{"x":68,"y":732,"width":834,"height":12}},{"id":"cb8a3858-cfa8-4915-8eb2-df597749a90c","block_type":"box","text":"paid a commitment fee, regardless of whether or not the security is ultimately issued. A Fund will enter into such","page_number":116,"box":{"x":70,"y":748,"width":802,"height":11}},{"id":"fb49fe86-e9a2-4e13-a287-c309219dd083","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":116,"box":{"x":69,"y":763,"width":793,"height":11}},{"id":"6818c0c1-06e0-4551-84da-408b92e8e8d8","block_type":"box","text":"advantageous to the Fund.","page_number":116,"box":{"x":69,"y":778,"width":188,"height":11}},{"id":"e20e8b45-cf22-4816-86b6-84746cdadb68","block_type":"box","text":"There can be no assurance that the securities subject to a standby commitment will be issued, and the value of","page_number":116,"box":{"x":101,"y":801,"width":800,"height":11}},{"id":"718b2e9b-baa7-4930-9ec1-fd1d382d544a","block_type":"box","text":"the security, if issued, on the delivery date may be more or less than its purchase price. Since the issuance of the","page_number":116,"box":{"x":68,"y":816,"width":816,"height":11}},{"id":"d21fa28d-b566-4479-82ef-9573efc44cc3","block_type":"box","text":"security underlying the commitment is at the option of the issuer, the Fund may bear the risk of a decline in the value","page_number":116,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"b1300ea2-d648-4cf9-956f-5292c43e6051","block_type":"box","text":"of such security and may not benefit from an appreciation in the value of the security during the commitment period.","page_number":116,"box":{"x":69,"y":846,"width":828,"height":11}},{"id":"4261091e-8ca3-4202-b7e2-ca7b7153371d","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":116,"box":{"x":101,"y":869,"width":785,"height":11}},{"id":"29d0fc5b-c024-43d1-aa2d-049cbc0b7a5d","block_type":"box","text":"be recorded on the date on which the security can reasonably be expected to be issued, and the value of the security","page_number":116,"box":{"x":69,"y":884,"width":837,"height":11}},{"id":"fbba81d6-2c05-4200-93cc-71b61aeb9db0","block_type":"box","text":"thereafter will be reflected in the calculation of a Fund’s NAV. The cost basis of the security will be adjusted by the","page_number":116,"box":{"x":68,"y":899,"width":815,"height":11}},{"id":"5c581585-e118-4f16-b688-c7bdc719dec8","block_type":"box","text":"II-76","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dd7f4df0-14ee-4c41-ae69-d7164ecc693e","block_type":"box","text":"NM1026U-5982643-116/241","page_number":116,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"bd72fb1e-6fba-454a-8e7c-8fba920aec02","block_type":"box","text":"amount of the commitment fee. In the event the security is not issued, the commitment fee will be recorded as","page_number":117,"box":{"x":69,"y":45,"width":792,"height":11}},{"id":"6ced216d-1ede-45eb-953b-cddd2b6dd56d","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":117,"box":{"x":70,"y":60,"width":415,"height":11}},{"id":"86a3c571-7c02-4a6a-9751-36d1c385132f","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":117,"box":{"x":102,"y":83,"width":789,"height":11}},{"id":"2dc6d3d5-4bb1-4f16-9f60-e546d0831631","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":117,"box":{"x":69,"y":98,"width":814,"height":11}},{"id":"07567413-9a4a-4672-9f0e-b672a33c4e66","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":117,"box":{"x":70,"y":113,"width":827,"height":11}},{"id":"adfb5f7a-7780-464a-883d-1d8e271637cf","block_type":"box","text":"at zero in determining NAV. Accordingly, where a Fund pays directly or indirectly for a standby commitment, its cost","page_number":117,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"0c6162ef-1a9e-4736-b653-0825ff0373be","block_type":"box","text":"will be reflected as an unrealized loss for the period during which the commitment is held by such Fund and will be","page_number":117,"box":{"x":68,"y":143,"width":817,"height":11}},{"id":"2b330b48-6739-4e31-b78a-7c078789445c","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":117,"box":{"x":69,"y":158,"width":578,"height":11}},{"id":"96681bfc-ff29-468d-b9f1-2eea1d5da30e","block_type":"box","text":"Stripped Securities.","page_number":117,"box":{"x":101,"y":181,"width":143,"height":11}},{"id":"26bae8af-2a4f-4248-bff2-bd09a7d5ac4d","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":117,"box":{"x":251,"y":181,"width":596,"height":11}},{"id":"a7919b77-ae80-4a41-a36f-ebcf696ad385","block_type":"box","text":"components of an instrument and sells them as separate securities. In general, one security is entitled to receive the","page_number":117,"box":{"x":69,"y":196,"width":839,"height":11}},{"id":"4f38aead-8d5e-4617-baf4-a3b398d29ce3","block_type":"box","text":"interest payments on the underlying assets (the interest only or “IO” security) and the other to receive the principal","page_number":117,"box":{"x":70,"y":211,"width":818,"height":11}},{"id":"fa0b553d-0d3d-4629-b5c2-4c1d8e99aa8a","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":117,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"92c71f8a-736b-475a-b868-355bcbbc36dc","block_type":"box","text":"principal payments. The yields to maturity on IOs and POs are sensitive to the expected or anticipated rate of","page_number":117,"box":{"x":70,"y":241,"width":777,"height":11}},{"id":"49736e25-d6fe-41f1-b0aa-c7a06631f5cd","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":117,"box":{"x":70,"y":257,"width":802,"height":11}},{"id":"45ff5651-109e-4046-9e3a-7abe9705ce5e","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":117,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"560991ca-e578-49ef-9d77-39a73e858cda","block_type":"box","text":"principal, a Fund may not fully recoup its initial investment in IOs. Conversely, if the underlying assets experience less","page_number":117,"box":{"x":70,"y":286,"width":837,"height":12}},{"id":"cf4e163a-25ce-4a98-b36a-34707e2ea452","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":117,"box":{"x":68,"y":302,"width":823,"height":11}},{"id":"46b9a894-1284-4625-b51e-b72f0152abcf","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":117,"box":{"x":69,"y":317,"width":494,"height":11}},{"id":"ae01a489-0198-40ae-82bc-65bb6b83dd88","block_type":"box","text":"Structured Notes.","page_number":117,"box":{"x":101,"y":340,"width":130,"height":8}},{"id":"9fdcb6da-a165-44f9-bf82-4fa0480c48d8","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":117,"box":{"x":237,"y":340,"width":650,"height":11}},{"id":"9885f2ef-7707-403e-9787-91b0c68c1ad4","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":117,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"c01a9b87-d507-43cd-9e90-66d2d5a35b77","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":117,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"f86281e7-fc50-4c4e-9b20-317c7e2e6eb8","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":117,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"4b108aee-8308-43bb-a100-1e9261c715c0","block_type":"box","text":"increase or decrease, depending upon changes in the value of the reference measure. The terms of a structured note","page_number":117,"box":{"x":70,"y":400,"width":839,"height":11}},{"id":"1db58ba3-c045-4ea3-b4d9-161d54fe76b4","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":117,"box":{"x":69,"y":415,"width":801,"height":11}},{"id":"d97eed8f-f34b-43a9-b66a-dfb91d117718","block_type":"box","text":"invested capital by a Fund. The interest and/or principal payments that may be made on a structured product may","page_number":117,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"a017b6af-217a-4e53-a9b8-b280330fe53f","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":117,"box":{"x":68,"y":445,"width":673,"height":12}},{"id":"03c6aa01-41ab-4ada-92a5-5be654f50a36","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":117,"box":{"x":102,"y":468,"width":768,"height":11}},{"id":"1d2be82e-b89b-4cbd-9c8b-8f20b6f3e22e","block_type":"box","text":"produce an increase or a decrease in the interest rate or the value of the principal at maturity. The rate of return on","page_number":117,"box":{"x":70,"y":483,"width":821,"height":11}},{"id":"ae47b987-8885-4c83-bc4f-5e38c99df257","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":117,"box":{"x":69,"y":498,"width":787,"height":11}},{"id":"b3f9162c-fb6b-4c57-81fd-0534edf00bc7","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":117,"box":{"x":69,"y":513,"width":827,"height":12}},{"id":"95ca5b07-cf58-4241-9f68-07f9bbbd1940","block_type":"box","text":"the risk of loss.","page_number":117,"box":{"x":68,"y":528,"width":110,"height":9}},{"id":"6a731814-2488-48ff-8815-6c015a9f28bf","block_type":"box","text":"The purchase of structured notes exposes a Fund to the credit risk of the issuer of the structured product.","page_number":117,"box":{"x":101,"y":551,"width":759,"height":11}},{"id":"bd07c569-33b0-474a-929c-5b25e4fad811","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":117,"box":{"x":69,"y":566,"width":795,"height":11}},{"id":"8e35e08d-1341-4500-8fa1-a177f42f6a7d","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":117,"box":{"x":69,"y":581,"width":819,"height":11}},{"id":"11e811b2-fe59-448c-bba5-1cc2c3814631","block_type":"box","text":"illiquid making them difficult to sell when the Fund determines to sell them. The possible lack of a liquid secondary","page_number":117,"box":{"x":70,"y":596,"width":821,"height":12}},{"id":"d2b5ea4f-8e2c-4ffc-a7d2-05ebfa6a0bc5","block_type":"box","text":"market for structured notes and the resulting inability of the Fund to sell a structured note could expose the Fund to","page_number":117,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"f76af940-c01f-4528-906d-4894a182609d","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":117,"box":{"x":70,"y":627,"width":618,"height":11}},{"id":"ecef12f1-4219-4b4a-917b-e5450a5fc16c","block_type":"box","text":"Taxability Risk.","page_number":117,"box":{"x":103,"y":649,"width":109,"height":11}},{"id":"c7e4e5b3-278f-4660-8392-05387c04554d","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":117,"box":{"x":218,"y":649,"width":644,"height":12}},{"id":"7d80ac07-e202-49c3-b496-07b89917af57","block_type":"box","text":"investing in tax-exempt or municipal securities in reliance at the time of purchase on an opinion of bond counsel to","page_number":117,"box":{"x":70,"y":664,"width":817,"height":12}},{"id":"11876823-6b5b-4763-bb19-4f9218fc45ce","block_type":"box","text":"the issuer and, in the case of derivative securities, sponsors’ counsel, that the interest paid on those securities will","page_number":117,"box":{"x":68,"y":680,"width":827,"height":11}},{"id":"d79b50de-4438-454e-924d-05283eb1a8d9","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":117,"box":{"x":69,"y":695,"width":835,"height":11}},{"id":"75e804f8-5b92-479e-b1d4-e524981d28f7","block_type":"box","text":"to pay, or have paid, taxable income subsequent to the Fund’s acquisition of the securities. In that event, the IRS","page_number":117,"box":{"x":68,"y":710,"width":809,"height":11}},{"id":"367dfde2-ae2e-4702-b812-9ee7bff7bce5","block_type":"box","text":"may demand that the Fund pay U.S. federal income taxes on the affected interest income, and, if the Fund agrees to","page_number":117,"box":{"x":69,"y":725,"width":832,"height":11}},{"id":"534d84dc-3675-471c-b8c4-1d7c3dd103fc","block_type":"box","text":"do so, the Fund’s yield could be adversely affected. In addition, the treatment of dividends previously paid or to be","page_number":117,"box":{"x":69,"y":740,"width":816,"height":11}},{"id":"5907f6f5-92cc-4f79-9538-f9bfd4ded34e","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":117,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"c2f4dab5-5bc8-41f5-b03b-0f5b078fcb9e","block_type":"box","text":"increased U.S. federal income tax liabilities. If the interest paid on any tax-exempt or municipal security held by the","page_number":117,"box":{"x":70,"y":770,"width":818,"height":11}},{"id":"84dd13a7-f6cf-4947-843a-375ec894180c","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":117,"box":{"x":70,"y":785,"width":771,"height":12}},{"id":"2dd8d75f-435b-49fd-8c52-050232bc1198","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":117,"box":{"x":70,"y":801,"width":765,"height":11}},{"id":"3ed13296-377f-46de-8c46-9cd77777c666","block_type":"box","text":"securities to be subject, directly or indirectly, to U.S. federal income taxation or interest on state municipal securities","page_number":117,"box":{"x":69,"y":816,"width":834,"height":11}},{"id":"66a16518-27d9-42e0-8e1a-4252d7914090","block_type":"box","text":"to be subject to state or local income taxation, or the value of state municipal securities to be subject to state or","page_number":117,"box":{"x":68,"y":831,"width":807,"height":11}},{"id":"bfb3e68b-0bb8-4f4c-9de9-68c737573ce0","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":117,"box":{"x":70,"y":846,"width":830,"height":11}},{"id":"a8fc9bf5-6e3d-4faa-9d39-5f58b1f1504e","block_type":"box","text":"tax-exempt status of such securities. Any such change could also affect the market price of such securities, and thus","page_number":117,"box":{"x":68,"y":861,"width":838,"height":11}},{"id":"6d8201eb-e7c0-40e3-8c90-5682348567d0","block_type":"box","text":"the value of an investment in the Fund.","page_number":117,"box":{"x":68,"y":876,"width":278,"height":9}},{"id":"e9cc3df7-b2cb-4bd3-afa6-74cdb14f8f2b","block_type":"box","text":"II-77","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"13b9f70e-e4be-4825-b15c-5c5b49d45807","block_type":"box","text":"NM1026U-5982643-117/241","page_number":117,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"358529e6-d8fd-4909-ab4d-0a5e59d1513f","block_type":"box","text":"Temporary Defensive Measures.","page_number":118,"box":{"x":103,"y":45,"width":230,"height":11}},{"id":"a8d4aeb2-86bf-4e2e-ab7e-8202fc74b1b4","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":118,"box":{"x":339,"y":45,"width":542,"height":11}},{"id":"02974bd9-1da6-41a1-a8a7-c8454b805147","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":118,"box":{"x":69,"y":60,"width":811,"height":11}},{"id":"0eb33d44-951e-4b5c-9631-55c6f9275317","block_type":"box","text":"without limitation in cash high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":118,"box":{"x":68,"y":75,"width":809,"height":11}},{"id":"c011c791-ee1c-4a63-a1e3-91cd99be0dc7","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":118,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"63505e36-3a51-480d-90b0-ae3cb0542b94","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":118,"box":{"x":70,"y":105,"width":813,"height":11}},{"id":"ae78f8a8-bd57-4de4-ae2c-7cd409a21326","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":118,"box":{"x":69,"y":120,"width":795,"height":12}},{"id":"1e1a9208-e35e-416b-8376-f2ad8a773395","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":118,"box":{"x":68,"y":135,"width":806,"height":12}},{"id":"10e473ae-62ee-45bb-bf9c-0f8392fe9422","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":118,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"86e8f358-931f-4766-ba58-f9bbe9d878a4","block_type":"box","text":"within two years from the date of settlement. Temporary defensive measures may affect a Fund’s ability to achieve","page_number":118,"box":{"x":68,"y":166,"width":820,"height":11}},{"id":"d39f07ab-9da7-4c10-916e-06f4c8242b8d","block_type":"box","text":"its investment objective.","page_number":118,"box":{"x":70,"y":181,"width":171,"height":11}},{"id":"cd900b9f-25f6-47da-9746-279a799036f4","block_type":"box","text":"U.S. Government Obligations.","page_number":118,"box":{"x":102,"y":203,"width":213,"height":11}},{"id":"0be9a429-da7c-43e8-b0e5-de50e3d14ff0","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":118,"box":{"x":321,"y":203,"width":566,"height":12}},{"id":"e35cb913-bda5-4191-9c65-f358e63e34b4","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":118,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"9e0c02ee-dbdb-4492-86d0-9cad41df8809","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":118,"box":{"x":70,"y":234,"width":826,"height":11}},{"id":"cfeed2a3-5a74-498e-a2d6-b3bd478783c1","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":118,"box":{"x":68,"y":249,"width":779,"height":11}},{"id":"71c6210f-c38c-4f53-866b-edf45589ff6b","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":118,"box":{"x":70,"y":264,"width":798,"height":11}},{"id":"66f2813f-5311-4265-9c7d-ac79531235e9","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":118,"box":{"x":69,"y":279,"width":822,"height":11}},{"id":"64f2de0b-1d1f-41d0-8deb-ada841d210ac","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":118,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"f1984f53-8b8d-4c6f-9982-40b01b4efca9","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":118,"box":{"x":69,"y":309,"width":805,"height":11}},{"id":"d91884e3-5a74-41c4-9f8b-be01cec518fb","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":118,"box":{"x":69,"y":324,"width":807,"height":11}},{"id":"839513f2-54cf-4a2c-9015-e7bb5fc0a541","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":118,"box":{"x":70,"y":339,"width":832,"height":12}},{"id":"3ce74bf4-4b05-43f9-8b90-237cb655098e","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":118,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"741ffde6-d19c-4aa0-9c60-b660cb4521f9","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":118,"box":{"x":69,"y":370,"width":716,"height":11}},{"id":"85288f6a-9c9b-45df-80eb-a658e5aa24b9","block_type":"box","text":"Examples of the types of U.S. Government obligations that may be held by the Funds include U.S. Treasury Bills,","page_number":118,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"90b8acd3-6ef2-4456-8f99-efc9d7a08c0b","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":118,"box":{"x":68,"y":407,"width":785,"height":12}},{"id":"cce0f6a1-ebe7-4e0e-a7e4-fc2867c4386b","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":118,"box":{"x":68,"y":423,"width":813,"height":11}},{"id":"9373bb3f-5df5-4aa0-ae38-e52d5e103a4a","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":118,"box":{"x":70,"y":438,"width":794,"height":11}},{"id":"d87817f2-0261-43ce-af73-6ea830975619","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":118,"box":{"x":69,"y":453,"width":835,"height":11}},{"id":"069d3cf5-fbaa-421a-a615-fbb8381fd01f","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":118,"box":{"x":69,"y":468,"width":818,"height":11}},{"id":"9a32fba6-afb5-49f5-8187-cf7d108e933b","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":118,"box":{"x":70,"y":483,"width":777,"height":11}},{"id":"0ac03dfd-b3f0-4408-aadf-434c3f0439ab","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":118,"box":{"x":70,"y":498,"width":749,"height":11}},{"id":"abb3254b-d3d9-4100-9987-a7a9f7c95ccd","block_type":"box","text":"U.S. Treasury Obligations.","page_number":118,"box":{"x":103,"y":521,"width":183,"height":11}},{"id":"582be54f-72fa-41ee-93db-3e33d93fd361","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":118,"box":{"x":292,"y":521,"width":593,"height":11}},{"id":"72bf16b4-f10f-4e92-9ff0-a43bdea0c523","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":118,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"cf1d1a14-65d2-4e05-8c95-3d2707eb4815","block_type":"box","text":"of credit but generally are not backed by the full faith and credit of the U.S. Government. No assurance can be given","page_number":118,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"0145b52a-12e8-4db4-ae9d-bbea2fc91cab","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":118,"box":{"x":68,"y":566,"width":823,"height":11}},{"id":"cf865e94-df9c-4a29-bd6a-e4caf46a7b01","block_type":"box","text":"do so.","page_number":118,"box":{"x":69,"y":582,"width":42,"height":8}},{"id":"b2650c5f-9a3d-4325-b50b-486581899f1b","block_type":"box","text":"U.S. Treasury Rolls","page_number":118,"box":{"x":102,"y":604,"width":139,"height":11}},{"id":"c5168b0e-e594-4699-8976-ff8915ffa174","block_type":"box","text":".","page_number":118,"box":{"x":241,"y":611,"width":3,"height":2}},{"id":"14d67408-f337-4f47-abe9-98ef5694386c","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":118,"box":{"x":250,"y":604,"width":656,"height":11}},{"id":"1d28b74a-c900-4869-8239-beec92181913","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":118,"box":{"x":69,"y":619,"width":804,"height":11}},{"id":"483cc796-7785-4940-96da-bd23a0916a20","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":118,"box":{"x":69,"y":634,"width":820,"height":12}},{"id":"7226db95-f511-4215-844c-fffe71632cec","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":118,"box":{"x":69,"y":649,"width":840,"height":12}},{"id":"d3f353d6-7021-4270-b9a9-146d5527cf2c","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":118,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"899063ef-42df-473f-9348-3da88d0d0a2e","block_type":"box","text":"roll, a Fund continues to earn interest on the securities it is selling; however, it does not earn interest on the","page_number":118,"box":{"x":69,"y":680,"width":775,"height":11}},{"id":"89831ad7-99a2-4e72-bf76-6b624532d22b","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":118,"box":{"x":69,"y":695,"width":829,"height":11}},{"id":"6e300bd3-93e0-477c-8e36-9e35f1531d04","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":118,"box":{"x":68,"y":710,"width":657,"height":11}},{"id":"ef35c820-7019-45db-9e13-f114837de637","block_type":"box","text":"The market value of the securities that a Fund is required to purchase may decline below the agreed upon","page_number":118,"box":{"x":101,"y":732,"width":756,"height":12}},{"id":"0bbd39e5-e658-4f64-9bee-7e289e65c4e4","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":118,"box":{"x":70,"y":748,"width":800,"height":11}},{"id":"e9f9e0e6-9d85-43dd-bc6d-7ac84649a43a","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":118,"box":{"x":70,"y":763,"width":617,"height":11}},{"id":"2286de07-0b48-4fae-9dab-60eda512e902","block_type":"box","text":"Utility Industries.","page_number":118,"box":{"x":102,"y":786,"width":124,"height":11}},{"id":"2b5a1013-950d-4287-98aa-91722ece6e45","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":118,"box":{"x":233,"y":785,"width":674,"height":12}},{"id":"a7a9bb18-015a-4491-901a-f02740dd4bf3","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":118,"box":{"x":69,"y":801,"width":812,"height":11}},{"id":"bcaef878-0bfa-4e8a-90c8-d33ce730437d","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":118,"box":{"x":69,"y":816,"width":812,"height":11}},{"id":"487cc43b-b677-405c-8784-9c947c9eba1a","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":118,"box":{"x":69,"y":831,"width":821,"height":11}},{"id":"0ec9f95f-776b-431f-8613-c341b9d92931","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":118,"box":{"x":68,"y":846,"width":815,"height":11}},{"id":"6577f650-7705-43a2-87ea-b783e983e1f2","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":118,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"1b58fd7b-8b57-422a-9073-a311b505c289","block_type":"box","text":"availability and high costs of natural gas for resale, the effects of energy conservation, the effects of a national","page_number":118,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"69c4825e-6d58-4ace-acdc-15c08b2cb82c","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":118,"box":{"x":69,"y":891,"width":774,"height":12}},{"id":"2ff331ca-d35f-4e54-83e5-b8282db617b5","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":118,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"108d95b1-242b-4f17-853e-16ecb6883dc4","block_type":"box","text":"II-78","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bd5ec37-0561-48eb-a884-1c1211355d4f","block_type":"box","text":"NM1026U-5982643-118/241","page_number":118,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"1260925b-cb54-4dee-a351-d1dc0f603b00","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":119,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"7d1523a7-e249-42ba-875e-3e5261cb4302","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":119,"box":{"x":68,"y":60,"width":827,"height":11}},{"id":"c0e94f4c-bab9-482c-8234-86c88776866d","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":119,"box":{"x":69,"y":75,"width":761,"height":11}},{"id":"252bf29d-c8de-47b7-8e7a-6db711ba9564","block_type":"box","text":"authorities will, in the future, grant rate increases or that such increases will be adequate to permit the payment of","page_number":119,"box":{"x":69,"y":90,"width":821,"height":11}},{"id":"4a539ffa-c4ec-4924-a8f8-b2a90f624d6c","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":119,"box":{"x":69,"y":105,"width":777,"height":11}},{"id":"140dd392-c596-4258-a236-092bccbfd0cc","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":119,"box":{"x":70,"y":120,"width":820,"height":12}},{"id":"877fb956-b659-4e23-9945-f291d1d664d9","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":119,"box":{"x":69,"y":135,"width":835,"height":12}},{"id":"15f3145e-5e1c-40d7-ab26-e126faf313ea","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":119,"box":{"x":68,"y":151,"width":778,"height":11}},{"id":"4d56c1b0-b894-4111-b37d-8ba8257f18fd","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":119,"box":{"x":69,"y":166,"width":808,"height":11}},{"id":"3a81c0ff-e200-4427-91dd-f84971e5d880","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":119,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"6fa6df13-495f-496a-bcdf-d6d4c201b4ba","block_type":"box","text":"utility.","page_number":119,"box":{"x":69,"y":196,"width":39,"height":11}},{"id":"d082ec09-00e3-4c34-99b4-149c25012cf1","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":119,"box":{"x":102,"y":218,"width":744,"height":12}},{"id":"0a60d66b-3696-4725-8e3b-f1363ccf0170","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":119,"box":{"x":70,"y":234,"width":828,"height":11}},{"id":"29d38f30-25ed-471e-aba7-503006bb9ef2","block_type":"box","text":"debt securities and, to a lesser extent, equity securities, tends to have an inverse relationship to the movement of","page_number":119,"box":{"x":69,"y":249,"width":817,"height":11}},{"id":"7c2af93e-e45f-48df-af6a-8bd8638f085f","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":119,"box":{"x":70,"y":264,"width":464,"height":11}},{"id":"0495620d-be51-47fe-9977-ad51f340f2b3","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":119,"box":{"x":102,"y":286,"width":789,"height":12}},{"id":"ae9cf689-f126-4fa6-a9ff-607f47735600","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":119,"box":{"x":69,"y":302,"width":790,"height":11}},{"id":"96a3d091-5a86-47e7-b98f-e50727a3f6ac","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":119,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"acea000e-7761-42a8-a59c-0928f7726e63","block_type":"box","text":"regulated in the United States and in foreign countries with the intention of protecting the public while ensuring that","page_number":119,"box":{"x":69,"y":332,"width":824,"height":11}},{"id":"e8e625c6-546b-4ca0-8806-d9495e27334a","block_type":"box","text":"the rate of return earned by utility companies is sufficient to allow them to attract capital in order to grow and","page_number":119,"box":{"x":68,"y":347,"width":781,"height":11}},{"id":"4860a1b4-f100-4665-9457-5ce064882dee","block_type":"box","text":"continue to provide appropriate services. There can be no assurance that such pricing policies or rates of return will","page_number":119,"box":{"x":69,"y":362,"width":826,"height":11}},{"id":"4b02d3db-362e-4f41-b47d-ecfbac6a0a7c","block_type":"box","text":"continue in the future.","page_number":119,"box":{"x":69,"y":377,"width":156,"height":9}},{"id":"c1707aed-ab1d-4521-84ba-1f42544c7b93","block_type":"box","text":"The nature of regulation of the utility industries continues to evolve both in the United States and in foreign","page_number":119,"box":{"x":101,"y":400,"width":763,"height":11}},{"id":"87a0083d-9d6f-4334-aaab-2b57d95ffa6c","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":119,"box":{"x":69,"y":415,"width":820,"height":11}},{"id":"2d102d7c-d44b-488e-ba23-4f6ea73a42a6","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":119,"box":{"x":70,"y":430,"width":834,"height":11}},{"id":"637a1236-1f7c-401b-a014-aae91e3a2714","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":119,"box":{"x":69,"y":446,"width":784,"height":11}},{"id":"a869d918-25d5-46fc-b142-4a24c6800e2e","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":119,"box":{"x":70,"y":460,"width":830,"height":12}},{"id":"3ee248b6-7410-4faf-80e5-9775509d7f7c","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":119,"box":{"x":68,"y":475,"width":809,"height":12}},{"id":"ae3e544f-c3d3-4c12-b2d2-2c2905e7c125","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":119,"box":{"x":69,"y":491,"width":834,"height":11}},{"id":"c2c2f1c2-66dc-4b42-ac06-fbf75e4624ca","block_type":"box","text":"utility companies being able to earn more than their traditional regulated rates of return, while others may be forced","page_number":119,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"45e7acd6-7dac-4c70-aa09-c0dbf0c9be0a","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":119,"box":{"x":68,"y":521,"width":840,"height":11}},{"id":"e4ba9035-7b5f-41c1-b271-89ff06b34cc3","block_type":"box","text":"new uses of funds (such as for expansion, operations or stock buybacks) could result in cuts in dividend payout","page_number":119,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"76c87a44-3b90-4684-bad3-2c15977551f8","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":119,"box":{"x":69,"y":551,"width":790,"height":11}},{"id":"f40ec890-474d-46dd-8a10-bf8f4d667b79","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":119,"box":{"x":68,"y":566,"width":831,"height":11}},{"id":"cf0adeda-e4a2-4be9-95a0-a0818cc65b9d","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":119,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"3e6011a4-08c3-42ae-89f4-9f87a8c9c9c7","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":119,"box":{"x":68,"y":596,"width":833,"height":12}},{"id":"4bb3304c-3eca-4997-884d-00abc1f6333b","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":119,"box":{"x":68,"y":612,"width":831,"height":11}},{"id":"3be2d29b-4b84-48e5-a3e4-b58b0a76ee98","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":119,"box":{"x":102,"y":634,"width":720,"height":12}},{"id":"8b049596-6790-4efc-9ab8-2dabb26bccd0","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":119,"box":{"x":69,"y":649,"width":838,"height":12}},{"id":"7c9d999c-d542-4f03-b32c-ad1e170a0008","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":119,"box":{"x":68,"y":665,"width":762,"height":11}},{"id":"8f293143-131d-4f77-89f6-e34362e495a6","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":119,"box":{"x":68,"y":680,"width":815,"height":11}},{"id":"a402c505-0364-4e5a-83e1-bf31e6db03c7","block_type":"box","text":"than those used in the United States, which may require such utilities to invest in pollution control equipment to","page_number":119,"box":{"x":68,"y":695,"width":801,"height":11}},{"id":"b2fdac4b-3c30-4571-91b0-7ae84e2a369f","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":119,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"0a060252-c698-46e2-8289-6dca4e371305","block_type":"box","text":"ways different from regulation in the United States.","page_number":119,"box":{"x":68,"y":725,"width":365,"height":11}},{"id":"e0a2c8bb-4765-4c9c-abc2-7638b88b12f1","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":119,"box":{"x":101,"y":748,"width":745,"height":11}},{"id":"b7d09683-e5c2-4caf-b875-ad529445d225","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":119,"box":{"x":68,"y":763,"width":790,"height":11}},{"id":"448e878e-3034-4ac0-9e94-3b661e71a0bb","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":119,"box":{"x":69,"y":778,"width":833,"height":11}},{"id":"587ab77e-2747-49d4-a507-d60134b69eb6","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":119,"box":{"x":69,"y":793,"width":810,"height":11}},{"id":"7b035a61-76cb-4ba7-864e-3a3cf6ab29aa","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":119,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"8321e8f2-640c-4d2b-9143-ad7499c83ded","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":119,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"ea7cd3f5-1f04-42ef-a71a-85dc163bd726","block_type":"box","text":"ownership, is expected to occur in newer, faster-growing economies and in mature economies. Of course, there is no","page_number":119,"box":{"x":69,"y":838,"width":832,"height":12}},{"id":"8d3339d6-e499-4dae-8d89-b90dcb102e9b","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":119,"box":{"x":69,"y":853,"width":786,"height":12}},{"id":"60311c4d-b95d-494e-b6d3-4e54b2488f52","block_type":"box","text":"increase.","page_number":119,"box":{"x":70,"y":869,"width":63,"height":9}},{"id":"f9b8ed4a-5ffe-4baa-801d-d277d6cc9c03","block_type":"box","text":"II-79","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d79c6a6f-0270-451c-97e4-e7a66330a8ac","block_type":"box","text":"NM1026U-5982643-119/241","page_number":119,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"b72c33d4-bbfc-4c01-a095-2fb3f759f59b","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":120,"box":{"x":101,"y":45,"width":793,"height":11}},{"id":"03ada3c9-2d78-4c87-8165-6eb2f2b7a073","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":120,"box":{"x":70,"y":60,"width":821,"height":11}},{"id":"48c3a566-8914-4202-a4d4-bf46aaffb554","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":120,"box":{"x":69,"y":75,"width":619,"height":11}},{"id":"0af92554-387d-4d9d-8ca4-6b17418aa70a","block_type":"box","text":"Electric.","page_number":120,"box":{"x":102,"y":98,"width":54,"height":9}},{"id":"ce199a47-bb5d-473a-9334-dd81cb63ddb6","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":120,"box":{"x":163,"y":98,"width":684,"height":11}},{"id":"b71aa50d-afa7-4134-89fd-25aa41c8c14a","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":120,"box":{"x":68,"y":113,"width":793,"height":11}},{"id":"47f81516-5fb7-498c-954e-f3019b99482a","block_type":"box","text":"electric utility companies, in general, have been favorably affected by lower fuel and financing costs and the full or","page_number":120,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"b6e0f880-e0d0-401f-bcea-d56eb088b94d","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":120,"box":{"x":69,"y":143,"width":833,"height":11}},{"id":"82f4db89-3d16-4e19-9f75-bebd362f4797","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":120,"box":{"x":69,"y":158,"width":821,"height":11}},{"id":"863f1a85-8c82-4d49-86bb-a04506d50676","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":120,"box":{"x":69,"y":173,"width":823,"height":11}},{"id":"32edc013-2c7c-4344-9d97-e08ed134b9bd","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":120,"box":{"x":68,"y":188,"width":803,"height":12}},{"id":"15beb86a-0eca-4c8c-b903-5a6aa09ec613","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":120,"box":{"x":70,"y":203,"width":778,"height":12}},{"id":"5f171d80-590b-42a5-aaf4-d20334c4169a","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":120,"box":{"x":70,"y":218,"width":836,"height":12}},{"id":"464e2c42-c4f3-417e-b8cf-5b6fb721f491","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":120,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"6401edb5-9e33-4ebd-908b-eed5252fcb14","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":120,"box":{"x":69,"y":249,"width":786,"height":11}},{"id":"525bf209-669c-4919-afd2-4bd3bc3bac7a","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":120,"box":{"x":69,"y":264,"width":819,"height":11}},{"id":"408de266-1f17-4b2e-b424-6392e0e79ed0","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":120,"box":{"x":69,"y":279,"width":775,"height":11}},{"id":"c6d23947-5a15-4e15-8690-20ff859874b1","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":120,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"6bfe892e-4157-4f49-a591-5cdaecf939eb","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":120,"box":{"x":70,"y":309,"width":826,"height":11}},{"id":"713876ae-22c3-4044-8e20-22008213684c","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":120,"box":{"x":69,"y":324,"width":800,"height":12}},{"id":"f4eb5229-19d6-4f4e-9334-9c7c189389e2","block_type":"box","text":"costs in rate authorizations or the risk that a company may not be permitted to operate or complete construction of a","page_number":120,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"5bc160a0-4543-4f68-b3cd-1de791f3b1b7","block_type":"box","text":"facility. In addition, operators of nuclear power plants may be subject to significant costs for disposal of nuclear fuel","page_number":120,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"da34b784-e027-4881-82ee-80d04068f4a1","block_type":"box","text":"and for decommissioning such plants.","page_number":120,"box":{"x":69,"y":370,"width":270,"height":11}},{"id":"8f8e460d-9100-4a9b-ae55-55c357f7fc9f","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":120,"box":{"x":101,"y":392,"width":776,"height":12}},{"id":"152e523f-f765-43b5-a98c-0a209d57c92e","block_type":"box","text":"impacted to a greater extent in the future by the division of their asset base. Electric utility companies that focus","page_number":120,"box":{"x":70,"y":407,"width":802,"height":12}},{"id":"50ced26c-ba57-4181-bc1b-30a2cc2200ba","block_type":"box","text":"more on the generation of electricity may be assigned less favorable ratings as this business is expected to be","page_number":120,"box":{"x":69,"y":423,"width":791,"height":11}},{"id":"0ec4ed1f-4056-453e-9c37-8778632d0ec6","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":120,"box":{"x":69,"y":438,"width":839,"height":11}},{"id":"41bf0aba-a515-45bc-be4a-69ed52a20fa9","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":120,"box":{"x":70,"y":453,"width":838,"height":11}},{"id":"d7e7bb2a-a215-4906-9767-84dc9caecfb0","block_type":"box","text":"greater predictability of cash flow.","page_number":120,"box":{"x":68,"y":468,"width":239,"height":11}},{"id":"7ac118be-8e78-42b3-8b9e-53e4cab17747","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":120,"box":{"x":101,"y":491,"width":801,"height":11}},{"id":"7c08fbb4-07b4-4d94-8d72-575a1de701b9","block_type":"box","text":"the industry as a result of such deregulation has at times resulted in lower revenue, lower credit ratings, increased","page_number":120,"box":{"x":68,"y":506,"width":821,"height":11}},{"id":"13a4c62c-03ef-4e29-9446-f949edeefc0c","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":120,"box":{"x":69,"y":521,"width":835,"height":11}},{"id":"3f635890-423e-48e9-89dd-8f4cd8c50dd7","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":120,"box":{"x":68,"y":536,"width":815,"height":11}},{"id":"d4fef017-c1f2-41c9-a34b-e356b8d7bc0a","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":120,"box":{"x":68,"y":551,"width":803,"height":11}},{"id":"ebc1db3d-d7b2-4bba-82d9-9789646fd863","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":120,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"efb99dd8-d10d-4a7d-98c8-5391a1492fd5","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":120,"box":{"x":69,"y":581,"width":819,"height":12}},{"id":"72eb094d-2a5d-4ab3-9cea-bceb0d1f1fc7","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":120,"box":{"x":68,"y":597,"width":835,"height":11}},{"id":"8c6f4a02-d9a5-4843-ac9e-9b7c883fef63","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":120,"box":{"x":69,"y":612,"width":700,"height":11}},{"id":"23a3e975-583b-452a-983a-3dc4a2a41eb1","block_type":"box","text":"Telecommunications.","page_number":120,"box":{"x":103,"y":634,"width":147,"height":9}},{"id":"709250f4-0cff-495f-b4b3-834bb796988d","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":120,"box":{"x":256,"y":634,"width":652,"height":11}},{"id":"d2455aae-f423-42aa-b076-229a75c0cf86","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":120,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"387477e9-2990-4ffb-95ae-01ee638f67a1","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":120,"box":{"x":70,"y":664,"width":782,"height":12}},{"id":"fa9627ec-9aa7-4e78-b28e-f835498068d3","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":120,"box":{"x":69,"y":680,"width":786,"height":11}},{"id":"a5caa5a9-f4f0-4d20-83c1-f2a5bbbe3225","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":120,"box":{"x":69,"y":695,"width":784,"height":11}},{"id":"eb0b30c2-0892-409f-a876-ea2942a4ff7a","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":120,"box":{"x":69,"y":710,"width":830,"height":11}},{"id":"69b7688e-2c06-40ff-8c3e-3dbe53c8ad2d","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":120,"box":{"x":69,"y":725,"width":790,"height":11}},{"id":"40e38d85-93db-4577-82ab-43841b1e2d84","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":120,"box":{"x":70,"y":740,"width":788,"height":11}},{"id":"60935c0d-3339-4c0a-9838-862e14fd994a","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":120,"box":{"x":68,"y":755,"width":825,"height":11}},{"id":"23685751-13c9-4283-bd95-533380d7026d","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":120,"box":{"x":69,"y":770,"width":823,"height":12}},{"id":"f173f917-04cf-4ce7-b5c1-42ec2117c3b1","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":120,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"2c62376b-0946-4d01-976a-301ee063e6ab","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":120,"box":{"x":69,"y":801,"width":830,"height":11}},{"id":"bb83c1f4-fe68-4ae4-9517-8e341c8bd550","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":120,"box":{"x":70,"y":816,"width":821,"height":11}},{"id":"d61d46eb-9694-41e6-a1f9-976a58f1e78e","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":120,"box":{"x":69,"y":831,"width":827,"height":11}},{"id":"a8a923f2-df4b-46a0-98ad-29b8d56f6c8b","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":120,"box":{"x":68,"y":846,"width":804,"height":11}},{"id":"db6e1370-c1c4-4b86-bd84-6e53e7cc48b5","block_type":"box","text":"residential, corporate and governmental customers.","page_number":120,"box":{"x":69,"y":861,"width":367,"height":11}},{"id":"e2cffc9f-e633-47e3-b3e1-9b4212af390a","block_type":"box","text":"Gas.","page_number":120,"box":{"x":102,"y":884,"width":31,"height":9}},{"id":"1c123a58-29f5-4793-ab1f-7c7fe940b916","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":120,"box":{"x":139,"y":884,"width":740,"height":11}},{"id":"d163f8c7-82ae-43a3-b36d-3f2edd70ea2b","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":120,"box":{"x":70,"y":899,"width":834,"height":11}},{"id":"97665fe6-540b-4c44-94d7-d99b22430533","block_type":"box","text":"II-80","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cd9b6f66-6ad3-4776-bf2b-864b02a8823e","block_type":"box","text":"NM1026U-5982643-120/241","page_number":120,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"19be0966-012f-4517-b36e-08f8db335e13","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":121,"box":{"x":70,"y":45,"width":756,"height":11}},{"id":"def2f3bc-5cc9-4f69-b53b-efd81d39af81","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":121,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"a964098e-f107-4677-aa1a-ef61dd08ba80","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":121,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"aaacf3e3-0182-465d-80ba-8419b77a79e4","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":121,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"5592f71c-7e35-44b6-a9ea-c0d1a173bfd6","block_type":"box","text":"outlook in the future. For example, natural gas is the cleanest of the hydrocarbon fuels, and this may result in","page_number":121,"box":{"x":69,"y":105,"width":782,"height":11}},{"id":"4b359ee4-c22d-4c43-9af6-f097b884d4c9","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":121,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"79aaa941-7a53-4899-a2b1-97599fadd425","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":121,"box":{"x":70,"y":136,"width":691,"height":11}},{"id":"838b0a6a-066f-4c0b-9799-eb5828acdcfd","block_type":"box","text":"Water.","page_number":121,"box":{"x":103,"y":158,"width":42,"height":9}},{"id":"77ec9925-afba-4eeb-abcc-75f455e044e3","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":121,"box":{"x":151,"y":158,"width":754,"height":11}},{"id":"bbe0c6a8-99b1-4d45-85d6-b54ed41c2317","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":121,"box":{"x":69,"y":173,"width":796,"height":11}},{"id":"59980638-556e-456a-b02e-3d684e5256af","block_type":"box","text":"Companies in this industry are generally mature and are experiencing little or no per capita volume growth. In the","page_number":121,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"230f6b12-2cce-4c91-8ab8-7098a63c55f2","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":121,"box":{"x":69,"y":203,"width":814,"height":12}},{"id":"fbe4e24b-4d96-4ecd-aac6-56c5f85f4818","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":121,"box":{"x":69,"y":218,"width":808,"height":12}},{"id":"50798213-093a-402d-9edd-aac31793fc48","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":121,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"b78ea2c0-262a-43da-a960-4776e47de05e","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":121,"box":{"x":69,"y":249,"width":662,"height":11}},{"id":"2c09e934-b20a-45d2-a0cd-172c1a61acb8","block_type":"box","text":"Utility Industries Generally.","page_number":121,"box":{"x":103,"y":272,"width":186,"height":11}},{"id":"734ff147-e3cc-49d3-8d5d-3e6bcf2d258b","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":121,"box":{"x":296,"y":272,"width":584,"height":11}},{"id":"ef18d7b2-0099-49ab-8d1e-fe60ece40957","block_type":"box","text":"those relating to privatization and changing regulation, will occur or that risk factors other than those noted above will","page_number":121,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"3152080f-426f-4cfa-b323-2fdde33543bc","block_type":"box","text":"not develop in the future.","page_number":121,"box":{"x":69,"y":302,"width":178,"height":11}},{"id":"1e985c65-ac14-47a6-9267-cfed80344072","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":121,"box":{"x":103,"y":324,"width":585,"height":11}},{"id":"9033f495-f885-4494-8daa-52fa56583e5a","block_type":"box","text":"A Fund may purchase or sell","page_number":121,"box":{"x":694,"y":325,"width":200,"height":10}},{"id":"a5b8f028-6b57-4927-b78b-a3d28b96b7dc","block_type":"box","text":"securities that it is entitled to receive on a when-issued basis. A Fund may also purchase or sell securities on a","page_number":121,"box":{"x":69,"y":340,"width":795,"height":11}},{"id":"46fb2f4d-ea60-4582-9250-7fc64154bf41","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":121,"box":{"x":69,"y":355,"width":777,"height":11}},{"id":"aeecba1e-9cd2-4394-b388-4be460289999","block_type":"box","text":"transactions involve the purchase or sale of securities by a Fund at an established price with payment and delivery","page_number":121,"box":{"x":68,"y":370,"width":820,"height":11}},{"id":"affbe824-1f7e-4fe1-8af5-ac78ee3767d5","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":121,"box":{"x":68,"y":385,"width":807,"height":11}},{"id":"1057213c-3198-4f02-a3bb-f6853247f46c","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":121,"box":{"x":70,"y":400,"width":430,"height":11}},{"id":"18752e11-5b70-417b-9a91-7d43e5c69f2c","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":121,"box":{"x":102,"y":423,"width":750,"height":11}},{"id":"dc79467b-d614-43d5-b70a-0d23b33633b1","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":121,"box":{"x":70,"y":438,"width":823,"height":11}},{"id":"9919d2b6-4a1e-4fe1-9742-5bd6a8b7ff89","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":121,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"650d004b-78ab-4cc8-aaa8-c697b10581ed","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":121,"box":{"x":70,"y":468,"width":755,"height":11}},{"id":"99026eed-ec64-41e3-a2b4-43e4e6f5f714","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":121,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"1417fbf6-e7d0-49a3-8689-dad58ebd874d","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":121,"box":{"x":69,"y":498,"width":614,"height":11}},{"id":"85ee4b18-751d-4090-8a10-437034c6400a","block_type":"box","text":"There can be no assurance that a security purchased on a when-issued basis will be issued or that a security","page_number":121,"box":{"x":101,"y":521,"width":780,"height":11}},{"id":"2f65508a-b25b-4988-bc5e-657d8994de77","block_type":"box","text":"purchased or sold on a delayed delivery basis or through a forward commitment will be delivered. Also, the value of","page_number":121,"box":{"x":70,"y":536,"width":823,"height":11}},{"id":"85d4546e-e504-4359-97e6-f6218bf3b697","block_type":"box","text":"securities in these transactions on the delivery date may be more or less than the price paid by the Fund to purchase","page_number":121,"box":{"x":69,"y":551,"width":838,"height":11}},{"id":"f6b5bd43-c243-414e-9ae0-4999ba3ea136","block_type":"box","text":"the securities. The Fund will lose money if the value of the security in such a transaction declines below the purchase","page_number":121,"box":{"x":68,"y":566,"width":839,"height":11}},{"id":"50946faa-9ea3-4b2c-9199-a1ce89b354d3","block_type":"box","text":"price and will not benefit if the value of the security appreciates above the sale price during the commitment period.","page_number":121,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"a6cf5b03-c9d8-4d8f-acd1-3bc07798915f","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":121,"box":{"x":102,"y":604,"width":776,"height":11}},{"id":"9ab4d79f-6636-4230-873c-b42eb6510070","block_type":"box","text":"after it has been entered into, and may sell securities it has committed to purchase before those securities are","page_number":121,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"c250d1aa-3fc1-4473-8aec-03f28d048eda","block_type":"box","text":"delivered to the Fund on the settlement date. In these cases the Fund may realize a taxable capital gain or loss.","page_number":121,"box":{"x":69,"y":634,"width":799,"height":12}},{"id":"d06efc35-fd57-4327-abe5-90dc520759e2","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":121,"box":{"x":101,"y":657,"width":784,"height":11}},{"id":"670259c0-1b43-4d11-b3c8-3a354f718990","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":121,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"b7886495-65c6-4a22-b93a-95131131160b","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":121,"box":{"x":69,"y":687,"width":434,"height":11}},{"id":"dc278d82-63a4-4b7a-8b87-54735ef457d0","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":121,"box":{"x":101,"y":710,"width":745,"height":11}},{"id":"3b026745-5ce6-43ca-9f34-a5ca983fdf3d","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":121,"box":{"x":68,"y":725,"width":831,"height":11}},{"id":"066ddb27-eebf-48f6-8d76-a937906c3d8c","block_type":"box","text":"day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed","page_number":121,"box":{"x":69,"y":740,"width":823,"height":11}},{"id":"02880ff3-0f08-4628-a62b-197523993ed5","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":121,"box":{"x":68,"y":755,"width":514,"height":11}},{"id":"ddcf15f8-38bb-4714-8bf3-326f9d29042e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into when-issued or forward-settling","page_number":121,"box":{"x":102,"y":778,"width":759,"height":11}},{"id":"32a81eb8-151c-440b-bd40-8a1c7d2a24be","block_type":"box","text":"securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":121,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"575bfd05-146d-4061-9305-26d88ab53c0a","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":121,"box":{"x":69,"y":808,"width":813,"height":11}},{"id":"a39cd0bf-80a0-4b5a-b0f6-70d861fe61d4","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":121,"box":{"x":70,"y":823,"width":822,"height":11}},{"id":"19127f79-7ae1-4b71-9794-6ae3e4a7cd59","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":121,"box":{"x":69,"y":838,"width":802,"height":11}},{"id":"a8875f7f-e4f0-46ea-ab66-cf2b7fc9f62f","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":121,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"1b855a07-a225-43d3-9838-c7059f5a7850","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":121,"box":{"x":70,"y":869,"width":816,"height":11}},{"id":"516d47d7-eacd-4bab-a533-8714e917b0bd","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":121,"box":{"x":70,"y":884,"width":349,"height":11}},{"id":"8de83c53-7cb3-4290-9749-992994163d55","block_type":"box","text":"II-81","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9671b0f5-7263-468d-b523-6f0d5cc632cc","block_type":"box","text":"NM1026U-5982643-121/241","page_number":121,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"ca124bb6-3afb-498b-8ba9-f460f342a3ec","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":122,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"eed5f0d5-51f2-4ca8-9943-aec3a8f5a180","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":122,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"74b1449c-4a5c-4082-96c9-2d784a381e95","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":122,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"0cdb76e1-e3f5-421d-9814-164c95af2751","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":122,"box":{"x":68,"y":90,"width":799,"height":11}},{"id":"f24c128b-1eba-4a0c-bca4-03d74d2beff4","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":122,"box":{"x":69,"y":105,"width":836,"height":11}},{"id":"2b2498e1-f226-4b4b-916c-a7d8cdb15bb9","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":122,"box":{"x":70,"y":120,"width":824,"height":12}},{"id":"f48690eb-4fdc-4135-a802-5d3b93daaa44","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":122,"box":{"x":69,"y":135,"width":829,"height":12}},{"id":"f32d35ac-f56f-407b-aa45-4dc1f9138f24","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":122,"box":{"x":68,"y":151,"width":573,"height":11}},{"id":"25d55425-32b3-4256-9aef-d9ce57ab9620","block_type":"box","text":"Yields and Ratings.","page_number":122,"box":{"x":103,"y":173,"width":139,"height":11}},{"id":"2abbccf1-78e0-48c4-9da8-aca7466f26e6","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":122,"box":{"x":247,"y":173,"width":628,"height":11}},{"id":"9d8b45c4-8332-4460-876d-da7833f16a25","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":122,"box":{"x":69,"y":188,"width":834,"height":12}},{"id":"51776b16-f99e-4559-9d73-1d563153efec","block_type":"box","text":"of the offering, the maturity of the obligation and the ratings of the issue. The ratings of Moody’s, Fitch and S&P","page_number":122,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"4377bffb-a499-47d0-a2c3-665b935c9013","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":122,"box":{"x":69,"y":218,"width":824,"height":12}},{"id":"628e36b4-caeb-4d71-baa6-abd40a9074d3","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":122,"box":{"x":68,"y":234,"width":792,"height":11}},{"id":"9a7d445e-a64e-4e9c-8f75-44ffbd14a6ee","block_type":"box","text":"interest rate may have different market prices. Subsequent to its purchase by a Fund, a rated security may cease to","page_number":122,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"7dbc99cd-2859-4328-9e71-d406af354059","block_type":"box","text":"be rated. A Fund’s Manager or sub-adviser will consider such an event in determining whether the Fund should","page_number":122,"box":{"x":69,"y":264,"width":786,"height":11}},{"id":"3da9fe92-2826-45b0-b887-4ae0b439cab5","block_type":"box","text":"continue to hold the security.","page_number":122,"box":{"x":69,"y":279,"width":204,"height":11}},{"id":"8d5dbab8-0bfa-4a29-917f-09a92432857a","block_type":"box","text":"Zero Coupon Securities.","page_number":122,"box":{"x":102,"y":302,"width":175,"height":11}},{"id":"e9d03916-d1bc-46d3-98b7-51f01450769b","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":122,"box":{"x":283,"y":302,"width":601,"height":11}},{"id":"1bf84618-53f0-46d9-b2c4-f581110df1a7","block_type":"box","text":"not pay interest during the life of the security. The discount approximates the total amount of interest the security will","page_number":122,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"47f72b9e-4ce8-4480-919a-24242b2b795b","block_type":"box","text":"accrue and compound over the period until maturity at a rate of interest reflecting the market rate of the security at","page_number":122,"box":{"x":69,"y":332,"width":822,"height":11}},{"id":"3d321714-ee28-42c7-bd8d-cc1744db406b","block_type":"box","text":"the time of issuance. Upon maturity, the holder of a zero coupon security is entitled to receive the par value of the","page_number":122,"box":{"x":68,"y":347,"width":814,"height":11}},{"id":"baaf41e2-9c81-45e2-ad14-161e1a3e90e8","block_type":"box","text":"security.","page_number":122,"box":{"x":69,"y":362,"width":57,"height":11}},{"id":"7346ee72-a86e-408a-90f0-665feb84b6d3","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":122,"box":{"x":101,"y":385,"width":749,"height":11}},{"id":"8931e822-c6e1-4214-9afa-59c7b7bf30a8","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":122,"box":{"x":69,"y":400,"width":835,"height":11}},{"id":"4e8bfd80-056e-465c-81ab-4f20129a4eab","block_type":"box","text":"owning instruments that do not make current interest payments is that a fixed yield is earned not only on the original","page_number":122,"box":{"x":69,"y":415,"width":833,"height":11}},{"id":"ce4a92b0-2578-463a-b619-63738e25e73a","block_type":"box","text":"investment but also, in effect, on all discount accretion during the life of the obligations. This implicit reinvestment of","page_number":122,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"16fc4388-1d43-4f93-93cb-53c332cff90e","block_type":"box","text":"earnings at a fixed rate eliminates the risk of being unable to invest distributions at a rate as high as the implicit","page_number":122,"box":{"x":69,"y":445,"width":804,"height":12}},{"id":"8baaa270-432b-41a5-8161-116c0c618ff0","block_type":"box","text":"yield on the zero coupon bond, but at the same time eliminates the holder’s ability to reinvest at higher rates in the","page_number":122,"box":{"x":68,"y":461,"width":824,"height":11}},{"id":"5e53f282-682e-44fd-91a4-f1f121ea7967","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":122,"box":{"x":68,"y":475,"width":805,"height":12}},{"id":"04aaff9e-165a-4d5e-9a10-d1a66df49c41","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":122,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"0579b458-4301-4f88-ac77-24c0c98374a9","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":122,"box":{"x":69,"y":506,"width":791,"height":11}},{"id":"68e1dd4e-de54-46a3-9224-23eb1cf63cc1","block_type":"box","text":"benefit the issuer by mitigating its need for cash to meet debt service, but also require a higher rate of return to","page_number":122,"box":{"x":69,"y":521,"width":800,"height":11}},{"id":"0aeb6a99-67ce-4d97-a5bd-fda8246c98aa","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":122,"box":{"x":69,"y":536,"width":400,"height":11}},{"id":"962cb7bc-4e45-4ed1-ae7a-22c0881bed71","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":122,"box":{"x":101,"y":559,"width":775,"height":11}},{"id":"1b8726da-54fe-45da-90d7-a81ecfdb45b1","block_type":"box","text":"prior to the receipt of cash payments. Zero coupon securities may be subject to greater fluctuation in value and less","page_number":122,"box":{"x":70,"y":574,"width":827,"height":11}},{"id":"56ef4031-1a83-4c41-a8ba-35e8a97e1819","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":122,"box":{"x":70,"y":589,"width":826,"height":11}},{"id":"fcc020f2-1833-48b7-bd43-3ccaca496f20","block_type":"box","text":"intervals.","page_number":122,"box":{"x":70,"y":604,"width":64,"height":9}},{"id":"6a790178-4ffd-4799-a151-a439f7ede818","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":122,"box":{"x":102,"y":627,"width":749,"height":11}},{"id":"3793396a-fcde-45a2-b63e-eac89ec346a6","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":122,"box":{"x":69,"y":642,"width":784,"height":11}},{"id":"3349c13d-fe1d-48b7-bf4b-636d5534437e","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":122,"box":{"x":70,"y":657,"width":799,"height":11}},{"id":"ef458ade-3ce7-4d66-9498-9285b26705ed","block_type":"box","text":"generate the cash to satisfy these distributions. The required distributions may result in an increase in a Fund’s","page_number":122,"box":{"x":68,"y":672,"width":799,"height":11}},{"id":"12bbbc32-9a48-4da2-9ad2-2be0a2f3bfd5","block_type":"box","text":"exposure to zero coupon securities.","page_number":122,"box":{"x":69,"y":687,"width":253,"height":11}},{"id":"e3984b24-ed4a-4afb-832f-4208e96b33b5","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":122,"box":{"x":102,"y":710,"width":740,"height":11}},{"id":"53c91350-f550-4338-b54e-367b93155f0d","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":122,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"9b19afc7-114c-46ad-ac05-d5bb34023e43","block_type":"box","text":"In addition, as these securities do not pay cash interest, a Fund’s investment exposure to these securities and their","page_number":122,"box":{"x":70,"y":740,"width":829,"height":11}},{"id":"98db302b-8416-4f08-b7e6-e3f507c04230","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":122,"box":{"x":69,"y":755,"width":741,"height":11}},{"id":"a7745d3a-3785-4558-9daa-7984936959f9","block_type":"box","text":"Suitability. (All Funds)","page_number":122,"box":{"x":101,"y":778,"width":161,"height":11}},{"id":"6266ea6d-9200-4b70-b5c8-31de3079ce7a","block_type":"box","text":"The economic benefit of an investment in any Fund depends upon many factors beyond the control of the Fund,","page_number":122,"box":{"x":101,"y":801,"width":793,"height":11}},{"id":"7b0ec91c-ad12-43a4-aa98-8dbff9133294","block_type":"box","text":"the Manager and its affiliates. Each Fund should be considered a vehicle for diversification and not as a balanced","page_number":122,"box":{"x":68,"y":816,"width":811,"height":11}},{"id":"d6ba15e7-2ab6-4073-810a-4b13f6db20aa","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":122,"box":{"x":70,"y":831,"width":810,"height":11}},{"id":"9ca0323a-1f17-44a9-8531-48cd59af5fab","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":122,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"ea01d511-9513-4ebf-9a9b-e901f38df15e","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":122,"box":{"x":68,"y":861,"width":460,"height":11}},{"id":"4f4e5608-b648-44b0-b540-4e1dd9b3404b","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":122,"box":{"x":102,"y":884,"width":264,"height":11}},{"id":"4171e889-a6bd-4463-a889-5ab6d03b8050","block_type":"box","text":"II-82","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"722d6dce-97e1-456a-b739-7a97249d9f56","block_type":"box","text":"NM1026U-5982643-122/241","page_number":122,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"e369e58f-313b-4455-8d79-12518c336cdf","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":123,"box":{"x":102,"y":45,"width":745,"height":11}},{"id":"5a217b86-b9fd-41a6-8529-8b1e3cf011b7","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":123,"box":{"x":68,"y":60,"width":807,"height":11}},{"id":"978bdf69-48c5-4ff3-a15a-35a474f354f2","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":123,"box":{"x":69,"y":75,"width":528,"height":11}},{"id":"fece68a8-f273-4c64-8e0e-0dc24877aee5","block_type":"box","text":"Each Fund’s investments will be limited in order to allow the Fund to qualify as a “regulated investment","page_number":123,"box":{"x":102,"y":98,"width":735,"height":11}},{"id":"9f551816-44a7-4e94-92c2-b071a030db1b","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":123,"box":{"x":69,"y":113,"width":775,"height":11}},{"id":"45cf981c-4890-4f72-9e8d-c622ff0a1eed","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":123,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"fe145dc3-c2ee-4ff0-b74a-d86cb9a9935a","block_type":"box","text":"50% of the market value of each Fund’s assets is represented by cash, securities of other regulated investment","page_number":123,"box":{"x":69,"y":143,"width":799,"height":11}},{"id":"91c4f75c-0d2e-4b24-b3dc-e77ee175c960","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":123,"box":{"x":69,"y":158,"width":837,"height":11}},{"id":"7bdfc38c-23f6-4b4d-acf1-eb197ecc2c5b","block_type":"box","text":"issuer, to an amount not greater in value than 5% of the Fund’s assets and not greater than 10% of the outstanding","page_number":123,"box":{"x":70,"y":173,"width":825,"height":11}},{"id":"1b9f453f-192e-404f-bfa6-49955ded5675","block_type":"box","text":"voting securities of such issuer and (ii) not more than 25% of the value of its assets is invested in the securities","page_number":123,"box":{"x":68,"y":188,"width":802,"height":12}},{"id":"e790f43a-e34f-4c99-838a-fcc588079623","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":123,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"53b47268-567e-4684-973c-f56a90c3469b","block_type":"box","text":"two or more issuers that the Fund controls and that are determined to be engaged in the same or similar trades or","page_number":123,"box":{"x":68,"y":219,"width":819,"height":11}},{"id":"2852a2d4-dbca-4cd2-843e-918b35bb9bbe","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":123,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"d00122e7-b97c-4ff0-9ebb-17e58cf0befa","block_type":"box","text":"(i.e., par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":123,"box":{"x":69,"y":249,"width":834,"height":11}},{"id":"a4b675ac-c75e-467b-92b4-3a34d21549fe","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":123,"box":{"x":70,"y":264,"width":824,"height":11}},{"id":"d82f7c5a-14ed-4582-b6ef-fac4fe1f05de","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":123,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"2dfa3f1f-3644-47d6-b226-7fab719cf2dc","block_type":"box","text":"of its political subdivisions, agencies or instrumentalities and each multi-state agency of which the state is a member","page_number":123,"box":{"x":69,"y":294,"width":838,"height":11}},{"id":"0a139ef8-f6d6-4d24-914f-74904b5cb272","block_type":"box","text":"as a separate issuer. Each public authority that issues securities on behalf of a private entity generally will also be","page_number":123,"box":{"x":69,"y":309,"width":815,"height":11}},{"id":"09ef1beb-1694-4001-a9dd-9b9429868957","block_type":"box","text":"regarded as a separate issuer, except that if the security is backed only by the assets and revenues of a non","page_number":123,"box":{"x":69,"y":324,"width":781,"height":12}},{"id":"994eb428-e829-414c-98ab-bc979ba84849","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":123,"box":{"x":68,"y":339,"width":810,"height":12}},{"id":"0d957a83-2562-48be-a96e-710d8be7c691","block_type":"box","text":"regarded as the sole issuer.","page_number":123,"box":{"x":69,"y":355,"width":198,"height":11}},{"id":"206c664d-f51d-4c71-a2a9-7d88cc172350","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":123,"box":{"x":102,"y":377,"width":784,"height":12}},{"id":"fbf814c7-123c-4476-b17f-1941186091eb","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":123,"box":{"x":69,"y":392,"width":819,"height":12}},{"id":"0f11236e-e296-46f5-b935-8f42be646cdf","block_type":"box","text":"considered to be obligations of a single issuer. These tax-related limitations may be changed by the Directors of a","page_number":123,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"d4ce59db-f361-4500-ab4e-93961711360e","block_type":"box","text":"Fund to the extent necessary to comply with changes to the U.S. federal tax requirements. A Fund that is","page_number":123,"box":{"x":70,"y":423,"width":747,"height":11}},{"id":"cb6087e0-4049-4e7c-98ce-f769f7771c4f","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":123,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"a562b9c0-ddf9-434e-8195-55b74b81d5b2","block_type":"box","text":"75% of its total assets.","page_number":123,"box":{"x":69,"y":453,"width":165,"height":9}},{"id":"c55614a8-aa08-49df-af1d-379bdb5a089f","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":123,"box":{"x":268,"y":482,"width":442,"height":10}},{"id":"2199d4c0-5607-4455-b3a4-ecae96af37fa","block_type":"box","text":"Directors and Officers","page_number":123,"box":{"x":69,"y":513,"width":159,"height":9}},{"id":"6393dbfb-19eb-4321-952f-31fca7a14b65","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":123,"box":{"x":102,"y":535,"width":733,"height":12}},{"id":"98b432dd-31d5-4c5e-a8f3-c8221018438d","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":123,"box":{"x":69,"y":550,"width":783,"height":12}},{"id":"a26bd63a-e23d-4add-ae44-0dda1a7cffd6","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":123,"box":{"x":69,"y":566,"width":795,"height":11}},{"id":"4c62278b-7f5f-4c31-87ce-78d75fe09ac7","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":123,"box":{"x":69,"y":581,"width":789,"height":11}},{"id":"41edc539-d5a5-49d2-ab45-c91bc4b97c35","block_type":"box","text":"Management Arrangements","page_number":123,"box":{"x":69,"y":611,"width":202,"height":11}},{"id":"785d4949-5d93-46b5-8107-3f576f5f2f54","block_type":"box","text":"Management Services.","page_number":123,"box":{"x":102,"y":634,"width":162,"height":11}},{"id":"d9e182c8-248a-40f3-a4e1-97c65348759a","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":123,"box":{"x":270,"y":634,"width":615,"height":11}},{"id":"ff32076e-6883-4c20-8060-15e8c474253f","block_type":"box","text":"Subject to the oversight of the Board of Directors, the Manager is responsible for the actual management of a Fund’s","page_number":123,"box":{"x":69,"y":649,"width":836,"height":11}},{"id":"ca454b76-7ba9-4f2c-8f86-86a4c69918b3","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":123,"box":{"x":70,"y":664,"width":820,"height":11}},{"id":"27b57349-e7d3-4a5f-a903-85f6ee0f0ebf","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":123,"box":{"x":68,"y":679,"width":832,"height":11}},{"id":"d558a34a-2aa9-4f25-a059-58f0dce4019b","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":123,"box":{"x":70,"y":694,"width":801,"height":11}},{"id":"ba45cdc6-8cf3-4990-bb72-e2f9ca113e7d","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":123,"box":{"x":69,"y":709,"width":370,"height":11}},{"id":"68f1ac8b-8815-4c33-bf6f-ea1c6407af4b","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":123,"box":{"x":102,"y":732,"width":778,"height":11}},{"id":"fc43e382-8206-45fe-be94-039f5d9295f1","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":123,"box":{"x":70,"y":747,"width":800,"height":11}},{"id":"611888aa-20a2-4e88-a23a-56dd0c8c99dd","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":123,"box":{"x":69,"y":762,"width":810,"height":11}},{"id":"ea902679-05ee-4c78-a89b-bc4b9bbff7d8","block_type":"box","text":"Management Fee.","page_number":123,"box":{"x":102,"y":785,"width":126,"height":11}},{"id":"e44738d0-b488-4614-a937-6bc7a10efe04","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":123,"box":{"x":235,"y":785,"width":646,"height":11}},{"id":"8a37b2f4-f461-4cf4-b396-6638c60e0ac7","block_type":"box","text":"the Manager receives for its services to the Fund monthly compensation at an annual rate based on the average daily","page_number":123,"box":{"x":68,"y":800,"width":841,"height":11}},{"id":"d6e26470-247a-40ac-a0cd-cf33fc7462f9","block_type":"box","text":"net assets of the Fund. For information regarding the fees paid by your Fund to the Manager for the Fund’s last three","page_number":123,"box":{"x":69,"y":815,"width":833,"height":11}},{"id":"d56bb09c-2ee2-4c99-8bbf-9baba297ad10","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements—Management","page_number":123,"box":{"x":68,"y":830,"width":834,"height":11}},{"id":"c30f7884-7f10-4243-a239-9ba7fb49c2e2","block_type":"box","text":"Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":123,"box":{"x":68,"y":845,"width":729,"height":12}},{"id":"348f0eb4-cdde-4678-b723-e31cd1a97b63","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":123,"box":{"x":102,"y":868,"width":774,"height":11}},{"id":"560ac346-4e26-4145-98a8-96d2d78953ef","block_type":"box","text":"management services and to pay all compensation of and furnish office space for officers and employees of a Fund","page_number":123,"box":{"x":69,"y":883,"width":826,"height":11}},{"id":"54f29caf-ff8b-4a1a-9717-30ea36508a1d","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":123,"box":{"x":70,"y":898,"width":820,"height":11}},{"id":"0c1095c4-05ea-4e21-864e-fc3fea7bc46d","block_type":"box","text":"II-83","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5da7cc5b-1eb3-4e1f-a470-7b8abb844290","block_type":"box","text":"NM1026U-5982643-123/241","page_number":123,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"b59f3235-5b25-4b66-a03f-bb0f9c959347","block_type":"box","text":"the fees of all Directors of the Fund who are interested persons of the Fund. Each Fund pays all other expenses","page_number":124,"box":{"x":68,"y":45,"width":797,"height":11}},{"id":"f1dbcd96-880b-49fe-bc0f-e43e07345f2c","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":124,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"afa7b1a5-bef8-492b-990f-8c707d3b5155","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":124,"box":{"x":69,"y":75,"width":802,"height":11}},{"id":"01ba9463-fa5e-40e9-acec-4fa469e47665","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":124,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"8f348525-74bd-4eaf-b14d-63764cbc2f48","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":124,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"38910b1a-cd64-417e-a1fd-f19511926175","block_type":"box","text":"of registering the shares under Federal, state or foreign laws; fees and expenses of Directors who are not interested","page_number":124,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"0720a592-b99c-42eb-8d36-636a2254ce36","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":124,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"7ec6fc5a-f69b-4bf9-ad5a-fbc36bd876a5","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":124,"box":{"x":69,"y":150,"width":767,"height":12}},{"id":"5b69a64b-83cb-45db-a618-d7e98094bcb2","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":124,"box":{"x":69,"y":166,"width":825,"height":11}},{"id":"1cb1d6c2-ed8f-4329-bbe2-dbd171614d33","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”)","page_number":124,"box":{"x":69,"y":181,"width":830,"height":11}},{"id":"ad270ddc-3b0c-4714-8797-5fdf0c41dd0a","block_type":"box","text":"or JPMorgan Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as","page_number":124,"box":{"x":69,"y":196,"width":794,"height":11}},{"id":"f4c7a81f-ea67-4c62-9216-db851de6cbec","block_type":"box","text":"applicable, and each Fund. Each Fund pays a fee for these services. In addition, the Manager provides cer tain","page_number":124,"box":{"x":69,"y":211,"width":786,"height":11}},{"id":"43706650-3aef-4d80-9f89-2b361a1d1450","block_type":"box","text":"accounting services to each Fund and the Fund pays the Manager a fee for such services. The Distributor pays","page_number":124,"box":{"x":69,"y":226,"width":790,"height":11}},{"id":"4b942fc3-a23e-45b6-beb5-f1cbcd2e75dc","block_type":"box","text":"cer tain promotional expenses of the Funds incurred in connection with the offering of shares of the Funds. Cer tain","page_number":124,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"da9a9522-b43d-4953-8fd8-2320eaa12155","block_type":"box","text":"expenses are financed by each Fund pursuant to distribution plans in compliance with Rule 12b-1 under the","page_number":124,"box":{"x":69,"y":256,"width":767,"height":11}},{"id":"0be3b6c4-d810-4351-b56c-13057e422ca8","block_type":"box","text":"Investment Company Act. See “Purchase of Shares — Distribution and/or Shareholder Servicing Plans.”","page_number":124,"box":{"x":70,"y":271,"width":743,"height":12}},{"id":"11f4c472-230d-47de-8b86-d30e7333d58e","block_type":"box","text":"Sub-Advisory Fee.","page_number":124,"box":{"x":102,"y":294,"width":124,"height":11}},{"id":"41a651fe-5d61-4319-911d-82d37aa07384","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":124,"box":{"x":232,"y":294,"width":643,"height":11}},{"id":"65602d0e-7b1c-4f09-b8fa-14bf9e561601","block_type":"box","text":"“Sub-Advisory Agreements”) with the sub-adviser or sub-advisers identified in each such Fund’s Prospectus (the “Sub","page_number":124,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"9ae50c69-5e25-450a-95ab-f75e5875a76d","block_type":"box","text":"Adviser”) pursuant to which the Sub-Adviser provides sub-advisory services to the Manager with respect to the Fund.","page_number":124,"box":{"x":68,"y":324,"width":830,"height":12}},{"id":"23967255-8398-40ef-8cef-80c04f400d98","block_type":"box","text":"Organization of the Manager.","page_number":124,"box":{"x":102,"y":347,"width":204,"height":11}},{"id":"3cbb9aef-8b9f-417d-8635-51d5a1736b1d","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":124,"box":{"x":313,"y":347,"width":560,"height":11}},{"id":"901c5955-9fb5-4e0d-96db-f9cdd98ac7ef","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":124,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"e86b622d-5c9c-4bc4-bbe7-16c58a63e961","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":124,"box":{"x":70,"y":377,"width":817,"height":12}},{"id":"e626f4cb-e3a7-430d-bace-f4d59bfaf0e6","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":124,"box":{"x":69,"y":393,"width":768,"height":11}},{"id":"de2840bb-0a26-4844-a676-3bad0f855a45","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":124,"box":{"x":69,"y":408,"width":821,"height":11}},{"id":"e2a05b72-ef8f-4383-a762-4bc940de7ab5","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":124,"box":{"x":69,"y":423,"width":517,"height":11}},{"id":"74ee28b8-c222-4302-94d7-f6903ad4181c","block_type":"box","text":"Duration and Termination.","page_number":124,"box":{"x":102,"y":446,"width":182,"height":8}},{"id":"ba41fced-82c0-4fbe-be97-87124f0bec49","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":124,"box":{"x":292,"y":446,"width":613,"height":11}},{"id":"98fb583b-6b58-428a-ac4b-b7318c654751","block_type":"box","text":"Sub-Advisory Agreement will remain in effect for an initial two year period and from year to year thereafter if approved","page_number":124,"box":{"x":69,"y":460,"width":835,"height":12}},{"id":"33d1419c-54ed-40eb-ab3c-a06774bac843","block_type":"box","text":"annually (a) by the Board of Directors or by a vote of a majority of the outstanding voting securities of a Fund and","page_number":124,"box":{"x":69,"y":475,"width":803,"height":12}},{"id":"edbc5822-8d8b-4a19-8519-b814d0eac8a9","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":124,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"0766fb67-cf61-4571-8ea7-51cd7104f20f","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":124,"box":{"x":70,"y":506,"width":778,"height":11}},{"id":"520fad05-2746-4ff8-b68b-144096e88e18","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":124,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"00c7a38e-bdf0-4689-b25e-08ad119e03e0","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":124,"box":{"x":69,"y":536,"width":388,"height":11}},{"id":"6d8ab658-6c3a-4693-a6fd-ddb762d98674","block_type":"box","text":"Other Service Arrangements","page_number":124,"box":{"x":69,"y":566,"width":205,"height":11}},{"id":"096c7b4e-8392-4e44-83c2-a39a5e1ae8ad","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":124,"box":{"x":101,"y":589,"width":338,"height":9}},{"id":"e58150ea-3a62-42dc-8d80-67349e6cd8d3","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":124,"box":{"x":446,"y":589,"width":439,"height":11}},{"id":"c3e48e47-2a0d-4c87-8ead-bf517abd5d9a","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":124,"box":{"x":69,"y":604,"width":818,"height":11}},{"id":"65647b46-185a-4c22-a3fa-8f8433b102fb","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":124,"box":{"x":69,"y":619,"width":808,"height":11}},{"id":"abf3f7fb-ab82-4867-ae43-e6472422fd8d","block_type":"box","text":"annual rate set for th in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":124,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"83f4584b-bda2-4f7f-8647-c21c51fd8a29","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":124,"box":{"x":68,"y":649,"width":738,"height":12}},{"id":"46c96304-67bc-4376-bc50-2afbe75288e2","block_type":"box","text":"Arrangements—Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":124,"box":{"x":68,"y":664,"width":829,"height":12}},{"id":"144a8ae2-3750-4e91-a986-f6cee659d134","block_type":"box","text":"that Fund’s SAI.","page_number":124,"box":{"x":68,"y":680,"width":113,"height":9}},{"id":"43ae2357-ff21-414a-8074-d3c30c2cca12","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":124,"box":{"x":102,"y":703,"width":755,"height":11}},{"id":"5f10b56a-145d-4878-97b3-d3869356480d","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":124,"box":{"x":69,"y":717,"width":800,"height":12}},{"id":"c616b949-5934-4395-a59b-2276ef504f3a","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":124,"box":{"x":70,"y":732,"width":809,"height":12}},{"id":"d5efff27-ec61-4e47-bf85-28649f40a35a","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":124,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"6631ad52-5556-431c-8764-e3e7688a8f21","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":124,"box":{"x":70,"y":763,"width":362,"height":11}},{"id":"f6c157b9-b8c6-4b8e-b468-57cc08f68d15","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":124,"box":{"x":102,"y":785,"width":390,"height":12}},{"id":"989591e4-14e2-4c71-a258-e1cb9e327f4d","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":124,"box":{"x":499,"y":786,"width":364,"height":10}},{"id":"e7c26d8a-0fae-40f4-8ed3-c890eb52d06f","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":124,"box":{"x":68,"y":801,"width":832,"height":11}},{"id":"ce90cf29-970b-4dd3-aaa1-c85d89b82736","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":124,"box":{"x":69,"y":816,"width":802,"height":11}},{"id":"8fecab56-12bb-4fb3-9801-b4a7e3a166ff","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":124,"box":{"x":69,"y":831,"width":800,"height":11}},{"id":"cd52df87-31c9-4c92-9c73-943810c96340","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":124,"box":{"x":70,"y":846,"width":810,"height":11}},{"id":"2200e533-160f-413d-bf4f-8d93ff095b46","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":124,"box":{"x":69,"y":861,"width":805,"height":11}},{"id":"23590ffa-35fd-48b6-9ed3-d2cd71b96144","block_type":"box","text":"shareholders of the Fund.","page_number":124,"box":{"x":69,"y":876,"width":181,"height":9}},{"id":"9512a8ac-9cb8-495a-a5e0-5b21e57dfac5","block_type":"box","text":"II-84","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9b1f65f2-3db7-4861-aa84-03c6a7e05210","block_type":"box","text":"NM1026U-5982643-124/241","page_number":124,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"2d41d63b-1470-4d98-b0f2-05dccf6e802d","block_type":"box","text":"Transfer Agency Services.","page_number":125,"box":{"x":103,"y":45,"width":180,"height":11}},{"id":"50b2319e-bd10-4040-9ee1-42a34c66a75a","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":125,"box":{"x":291,"y":45,"width":595,"height":11}},{"id":"83711c78-c988-4487-b00f-acb34af3741b","block_type":"box","text":"subsidiary of The Bank of New York Mellon Corporation, acts as each Fund’s Transfer Agent pursuant to a Transfer","page_number":125,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"afc6ece4-6fdd-4b2f-b7ad-6062f3035d89","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":125,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"bacc6e0a-b028-4ed3-b46f-bd3a02c2553c","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":125,"box":{"x":68,"y":90,"width":792,"height":11}},{"id":"336c202b-8258-4bcf-85ae-564077354357","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":125,"box":{"x":68,"y":105,"width":819,"height":11}},{"id":"22f293d7-59fb-4292-a04d-65b53422a425","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":125,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"d8fa31c2-635f-40c6-9d21-ef9e9c702020","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":125,"box":{"x":70,"y":135,"width":831,"height":12}},{"id":"d7f49f39-8453-45db-a80b-ca3937d41d3d","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":125,"box":{"x":68,"y":150,"width":813,"height":12}},{"id":"771e7efe-df53-4211-9cc9-2825a1d6b337","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":125,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"9a4847db-a17d-48ca-a058-af620958e5ff","block_type":"box","text":"by the Transfer Agent and any other account representing the beneficial interest of a person in the relevant share","page_number":125,"box":{"x":69,"y":181,"width":806,"height":11}},{"id":"cc8993be-4f0e-42cd-baef-1e7ecd979034","block_type":"box","text":"class on a recordkeeping system.","page_number":125,"box":{"x":69,"y":196,"width":238,"height":11}},{"id":"8232909d-c7c3-4416-9d6f-47ebab7c1eab","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":125,"box":{"x":102,"y":219,"width":338,"height":11}},{"id":"ea6f5437-a8f8-4467-9d99-e9f95b5e4d0b","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":125,"box":{"x":446,"y":218,"width":441,"height":11}},{"id":"994e2b31-5275-476f-9301-039e99956ab6","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":125,"box":{"x":69,"y":234,"width":840,"height":11}},{"id":"3b2c64e0-0855-4e34-ab46-ef4da5b01312","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":125,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"d6dfa242-b589-462d-ac76-df06922ea8be","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":125,"box":{"x":69,"y":264,"width":627,"height":11}},{"id":"6538251d-5349-44b0-b7c0-f301b29125ed","block_type":"box","text":"Custodian Services.","page_number":125,"box":{"x":102,"y":287,"width":141,"height":9}},{"id":"bae32d6c-ecdc-4686-939c-1b4c9616cf9f","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":125,"box":{"x":249,"y":286,"width":654,"height":12}},{"id":"1d691b77-9522-4494-ab5c-2ab3aef3a211","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":125,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"1577c31c-8ede-450d-9550-b408a62027bb","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":125,"box":{"x":70,"y":317,"width":814,"height":11}},{"id":"9a72a77c-1009-4007-80a3-ed63c2bf0ec1","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":125,"box":{"x":68,"y":332,"width":802,"height":11}},{"id":"6ae68bfd-e9dc-4819-8237-4d0ff364e44b","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":125,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"8927fe88-2dac-4773-8d68-20d73c991068","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":125,"box":{"x":69,"y":362,"width":792,"height":11}},{"id":"bc80ee79-5641-4763-934c-c8ceae8d5a83","block_type":"box","text":"cer tain assets.","page_number":125,"box":{"x":69,"y":377,"width":106,"height":9}},{"id":"ff542b1b-f3c5-4898-8285-f0262643b018","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":125,"box":{"x":102,"y":400,"width":716,"height":10}},{"id":"4a135a97-d615-4cd6-862e-66bc3d6ee913","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":125,"box":{"x":102,"y":423,"width":803,"height":11}},{"id":"25329f06-9424-42e8-b7a9-a4b476936403","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":125,"box":{"x":69,"y":438,"width":799,"height":11}},{"id":"50aa13fb-341c-4cc8-87cb-5107c8e6672c","block_type":"box","text":"credit”) or a charge based on that net amount. With respect to such Funds, the custodian fees, including the amount","page_number":125,"box":{"x":69,"y":453,"width":834,"height":11}},{"id":"0c9d58fe-90cf-4ec0-a78d-3309d2019eb4","block_type":"box","text":"of any overdraft charges, may be reduced by the amount of such custody credits, and any unused credits at the end","page_number":125,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"0b297ddb-d1b8-4125-9258-d36e07b8e099","block_type":"box","text":"of a given month may be carried forward to a subsequent month. Any such credits unused by the end of a Fund’s","page_number":125,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"ce4dac2c-dbde-4e30-bdde-7570c4031107","block_type":"box","text":"fiscal year will not expire. Net debits at the end of a given month are added to the Fund’s custody bill and paid by the","page_number":125,"box":{"x":68,"y":498,"width":836,"height":11}},{"id":"5889aa05-79bb-4dbd-bb17-93a0669818a9","block_type":"box","text":"Fund.","page_number":125,"box":{"x":70,"y":514,"width":36,"height":8}},{"id":"3982c072-22d0-4865-b1e1-f4f3356034e7","block_type":"box","text":"Accounting Services.","page_number":125,"box":{"x":101,"y":536,"width":148,"height":11}},{"id":"767cae06-b581-4688-9b4a-ef9584021a9c","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":125,"box":{"x":256,"y":536,"width":641,"height":11}},{"id":"bc17de1b-f303-4efd-a978-11b3b1851816","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":125,"box":{"x":68,"y":551,"width":829,"height":11}},{"id":"f2f7f3dc-7ed7-47e8-aab9-98e536eea05b","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":125,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"f5ee1a6d-4b67-4f04-8c8f-52013419ad96","block_type":"box","text":"Master LLCs.","page_number":125,"box":{"x":70,"y":581,"width":91,"height":9}},{"id":"c053492f-8881-4c2a-a53d-91aa02580ea5","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":125,"box":{"x":102,"y":604,"width":771,"height":11}},{"id":"dc5077a8-670a-40c2-a461-b6095e4ecd1d","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":125,"box":{"x":68,"y":619,"width":810,"height":11}},{"id":"d6e58e63-739a-49a0-9ee6-8c198b1b3cbd","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":125,"box":{"x":69,"y":634,"width":828,"height":12}},{"id":"2297760f-6acc-4da3-8b4c-526ee7b25ff6","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":125,"box":{"x":69,"y":649,"width":386,"height":11}},{"id":"a09893d6-d976-4cee-ac5d-305e9d716703","block_type":"box","text":"Distribution Expenses.","page_number":125,"box":{"x":102,"y":672,"width":158,"height":11}},{"id":"425cbb65-60af-411c-8b4e-523be95ddf33","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":125,"box":{"x":267,"y":672,"width":614,"height":11}},{"id":"dfc3fc0d-264f-4f8b-916d-edfd138b99e4","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":125,"box":{"x":68,"y":687,"width":807,"height":11}},{"id":"04ed726d-69ac-4170-b709-cd3523d21a70","block_type":"box","text":"Agreements obligate the Distributor to pay cer tain expenses in connection with the offering of each class of shares of","page_number":125,"box":{"x":68,"y":702,"width":842,"height":12}},{"id":"3ccba591-fd75-4bad-99be-673a762eac1d","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic repor ts have been prepared,","page_number":125,"box":{"x":68,"y":717,"width":813,"height":11}},{"id":"137efeb9-04c3-4a24-847f-1ce4474bdbeb","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":125,"box":{"x":69,"y":732,"width":836,"height":12}},{"id":"213ae795-68ed-461c-a0c0-2894ca320ff0","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":125,"box":{"x":70,"y":748,"width":799,"height":11}},{"id":"6686b482-8e76-433a-93c6-317fc93301d1","block_type":"box","text":"literature and adver tising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":125,"box":{"x":70,"y":763,"width":788,"height":11}},{"id":"42aa6db0-b1a1-4d4f-a019-07a3296bf917","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":125,"box":{"x":68,"y":778,"width":513,"height":11}},{"id":"b2f129ed-b505-4f88-847f-44cda1351d2d","block_type":"box","text":"Code of Ethics","page_number":125,"box":{"x":69,"y":808,"width":105,"height":9}},{"id":"d7301985-99f7-4698-aeeb-8a3f5969fd80","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":125,"box":{"x":102,"y":831,"width":780,"height":11}},{"id":"2dbcf3f4-6cfc-4aad-ba61-ae9348cdfbb6","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":125,"box":{"x":70,"y":846,"width":794,"height":11}},{"id":"b1e8d8d1-77c0-4692-9a0f-43cdd21e4a9a","block_type":"box","text":"restricts cer tain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":125,"box":{"x":69,"y":861,"width":803,"height":11}},{"id":"50b3377c-4410-41e4-89eb-c9e0b71152e8","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":125,"box":{"x":70,"y":876,"width":593,"height":11}},{"id":"b87df5c8-891c-4418-b14a-e68d96c89b80","block_type":"box","text":"II-85","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c4765bff-09da-4c1e-a3ed-85ed4ecec285","block_type":"box","text":"NM1026U-5982643-125/241","page_number":125,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"31f36578-22ea-478d-b4a5-e8f01a6b752d","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":126,"box":{"x":282,"y":45,"width":413,"height":10}},{"id":"cf103488-f946-44e1-99ac-700cd178cce2","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Por tfolio","page_number":126,"box":{"x":101,"y":68,"width":777,"height":11}},{"id":"105ffc36-133e-4fd5-a643-1576763ca0a3","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":126,"box":{"x":70,"y":83,"width":788,"height":11}},{"id":"e234fc4a-3152-44a4-a7f8-2039cfdf9ac0","block_type":"box","text":"por tfolio securities, as applicable, and other por tfolio information. The purpose of the Policy is to ensure that","page_number":126,"box":{"x":70,"y":98,"width":778,"height":11}},{"id":"1a673360-0ef8-4a29-933b-53b430e265fe","block_type":"box","text":"(i) shareholders and prospective shareholders of the Funds have equal access to por tfolio holdings and","page_number":126,"box":{"x":69,"y":113,"width":737,"height":12}},{"id":"fd0d9414-30f3-460d-b879-856fd4a11978","block_type":"box","text":"characteristics and (ii) third par ties (such as consultants, intermediaries and third-par ty data providers) have access","page_number":126,"box":{"x":69,"y":129,"width":829,"height":11}},{"id":"64b289fb-3483-414c-b67e-3cae6fa0f6d7","block_type":"box","text":"to such information no earlier or more frequently than shareholders and prospective shareholders.","page_number":126,"box":{"x":68,"y":143,"width":701,"height":12}},{"id":"86d01e85-6ceb-493e-9370-d67c6a7715a9","block_type":"box","text":"Pursuant to the Policy, each Fund and the Manager may, under cer tain circumstances as set for th below, make","page_number":126,"box":{"x":102,"y":166,"width":791,"height":11}},{"id":"4f214aaa-1459-4d42-8718-9f4c688d92db","block_type":"box","text":"selective disclosure with respect to a Fund’s Por tfolio Characteristics (as defined below) and Por tfolio Holdings (as","page_number":126,"box":{"x":69,"y":181,"width":819,"height":12}},{"id":"c7ca81f0-c9ce-4ea8-8220-f02e3453b52d","block_type":"box","text":"defined below). The Board of Directors of each Fund and the Board of Directors of the Manager have each approved","page_number":126,"box":{"x":69,"y":196,"width":824,"height":12}},{"id":"80133116-d2ed-4cf7-8eef-b8e6d0d9a6a2","block_type":"box","text":"the adoption by the Fund of the Policy, and employees of the Manager are responsible for adherence to the Policy.","page_number":126,"box":{"x":68,"y":212,"width":813,"height":11}},{"id":"881db430-e731-4955-83b5-621a8ef05b47","block_type":"box","text":"The Board of Directors provides ongoing oversight of the Fund’s and Manager’s compliance with the Policy.","page_number":126,"box":{"x":68,"y":227,"width":761,"height":11}},{"id":"56ba5ec6-45fe-4bc0-9a1d-2b9c49dbe31b","block_type":"box","text":"Disclosure of material non-public information (“Confidential Information”) about a Fund’s Por tfolio Holdings and/","page_number":126,"box":{"x":102,"y":249,"width":802,"height":12}},{"id":"cf2ef3f0-b7d7-48cb-8b47-21c5ec9d38d6","block_type":"box","text":"or Por tfolio Characteristics is prohibited, except as provided in the Policy.","page_number":126,"box":{"x":69,"y":264,"width":520,"height":12}},{"id":"3b3171bc-e691-47c6-bb6f-1233c49a0595","block_type":"box","text":"Confidential Information relating to a Fund may not be distributed to persons not employed by BlackRock unless","page_number":126,"box":{"x":102,"y":287,"width":797,"height":11}},{"id":"9150920e-0b3f-4c2a-a606-3018789d19f6","block_type":"box","text":"the Fund has a legitimate business purpose for doing so and confidentiality obligations are in effect, as appropriate.","page_number":126,"box":{"x":68,"y":302,"width":829,"height":12}},{"id":"b46e241f-42bf-4e6d-9015-10225f82740b","block_type":"box","text":"•","page_number":126,"box":{"x":69,"y":325,"width":6,"height":5}},{"id":"7b8769d2-daa1-42f5-b0b8-6561f87e29f4","block_type":"box","text":"Por tfolio Holdings","page_number":126,"box":{"x":102,"y":322,"width":126,"height":12}},{"id":"5091bcc2-5e1e-4b27-b516-6a8bf8712a45","block_type":"box","text":": “Por tfolio Holdings” are a Fund’s por tfolio securities and other instruments, and include, but","page_number":126,"box":{"x":229,"y":322,"width":671,"height":12}},{"id":"fc85f434-0f3d-4cd6-a612-078cb974c1ee","block_type":"box","text":"are not limited to:","page_number":126,"box":{"x":102,"y":338,"width":125,"height":9}},{"id":"9c91b6ca-7646-422c-9c84-9de21cb6b9f5","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":361,"width":6,"height":4}},{"id":"ae73231a-1b5f-4dd4-9bb3-6118e8784327","block_type":"box","text":"for equity securities, information such as issuer name, CUSIP, ticker symbol, total shares and market value;","page_number":126,"box":{"x":134,"y":358,"width":768,"height":11}},{"id":"14b61d4a-824b-481e-bcfd-3860e360906b","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":381,"width":6,"height":4}},{"id":"521e6343-9ef8-4bf7-ad8a-9e2e75b2b6f8","block_type":"box","text":"for fixed income securities, information such as issuer name, CUSIP, ticker symbol, coupon, maturity,","page_number":126,"box":{"x":134,"y":378,"width":720,"height":11}},{"id":"3cbd4afa-1a91-4c9a-a30d-e9c4befba32d","block_type":"box","text":"current face value, market value, yield, WAL, WAM, duration and convexity;","page_number":126,"box":{"x":134,"y":393,"width":529,"height":11}},{"id":"44603407-8acf-4a77-8c62-6074e5a83d6d","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":416,"width":6,"height":5}},{"id":"eda120a6-23c4-4e61-95c8-93d5e605bdfd","block_type":"box","text":"for all securities, information such as quantity, SEDOL and market price as of a specific date;","page_number":126,"box":{"x":134,"y":413,"width":664,"height":11}},{"id":"1be83a8a-ca2d-4392-9746-a127423c7c9f","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":436,"width":6,"height":5}},{"id":"bc8a16ff-eaf9-4bdd-b5a6-97fb2e0e14aa","block_type":"box","text":"for derivatives, indicative data including, but not limited to, pay leg, receive leg, notional amount, reset","page_number":126,"box":{"x":134,"y":433,"width":731,"height":12}},{"id":"5bae6200-e506-4dea-a27a-e1e97d24c0b4","block_type":"box","text":"frequency and trade counterpar ty; and","page_number":126,"box":{"x":134,"y":448,"width":271,"height":12}},{"id":"44258d94-4c8d-4d87-9bbe-2c1931e2cc27","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":471,"width":6,"height":5}},{"id":"1fc97173-d5e3-4358-9881-146a6d6dd842","block_type":"box","text":"for trading strategies, specific por tfolio holdings, including the number of shares held, weightings of","page_number":126,"box":{"x":134,"y":469,"width":712,"height":11}},{"id":"55a38466-da7d-4c5f-ac95-7d89b521631d","block_type":"box","text":"par ticular holdings, trading details, pending or recent transactions and por tfolio management plans to","page_number":126,"box":{"x":135,"y":484,"width":726,"height":11}},{"id":"17a5bb2e-53e4-4fa4-a68f-8ce706723303","block_type":"box","text":"purchase or sell par ticular securities or allocation within par ticular sectors.","page_number":126,"box":{"x":135,"y":499,"width":533,"height":11}},{"id":"835ecbb9-b206-4173-9be1-8e3d60404c33","block_type":"box","text":"•","page_number":126,"box":{"x":69,"y":522,"width":6,"height":4}},{"id":"e47a1f86-9e5c-4b9f-ae17-3704b0b92e45","block_type":"box","text":"Por tfolio Characteristics (excluding Liquidity Metrics):","page_number":126,"box":{"x":102,"y":519,"width":377,"height":11}},{"id":"0447b539-a28c-4593-950c-878ed70beee1","block_type":"box","text":"“Por tfolio Characteristics” include, but are not limited to,","page_number":126,"box":{"x":486,"y":519,"width":404,"height":10}},{"id":"16c948f1-a15b-4518-a8ba-01eefb8f579c","block_type":"box","text":"sector allocation, credit quality breakdown, maturity distribution, duration and convexity measures, average credit","page_number":126,"box":{"x":102,"y":534,"width":807,"height":11}},{"id":"2f12c100-dd60-49e5-b1c9-dbccc9a8dd82","block_type":"box","text":"quality, average maturity, average coupon, top 10 holdings with percent of the fund held, average market","page_number":126,"box":{"x":102,"y":549,"width":745,"height":11}},{"id":"fe284132-8765-49de-b8cf-4cd2ba615163","block_type":"box","text":"capitalization, capitalization range, risk related information (e.g., value at risk, standard deviation), ROE, P/E,","page_number":126,"box":{"x":101,"y":564,"width":778,"height":12}},{"id":"36822ad5-6fe6-4982-a57c-5843fe7b385f","block_type":"box","text":"P/B, P/CF, P/S and EPS.","page_number":126,"box":{"x":102,"y":580,"width":177,"height":10}},{"id":"90f0feb7-0559-4662-a74c-40c5d886df97","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":603,"width":6,"height":4}},{"id":"3215991c-f563-4542-90da-8617a2c53b4f","block_type":"box","text":"Additional characteristics specific to money market funds include, but are not limited to, historical daily and","page_number":126,"box":{"x":134,"y":600,"width":766,"height":11}},{"id":"e7e2d962-a8f4-47e8-b973-bb74591bc454","block_type":"box","text":"weekly liquid assets (as defined under Rule 2a-7) and historical fund net inflows and outflows.","page_number":126,"box":{"x":134,"y":615,"width":670,"height":11}},{"id":"d4d52bbb-827c-485f-8366-6c3f8e99a0f7","block_type":"box","text":"•","page_number":126,"box":{"x":69,"y":638,"width":6,"height":4}},{"id":"fb838a5f-967d-4567-928b-08880babc916","block_type":"box","text":"Por tfolio Characteristics — Liquidity Metrics:","page_number":126,"box":{"x":102,"y":635,"width":318,"height":11}},{"id":"83fa6b07-4286-4a42-a28b-8aa9dcce8d62","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":658,"width":6,"height":5}},{"id":"b2c81053-b6d0-4a1e-9ae3-4d312829560c","block_type":"box","text":"“Liquidity Metrics” which seek to ascer tain a Fund’s liquidity profile under BlackRock’s global liquidity risk","page_number":126,"box":{"x":135,"y":655,"width":754,"height":11}},{"id":"74b0c9fa-2295-4e22-88d1-8c703b61edb7","block_type":"box","text":"methodology which include, but are not limited to: (a) disclosure regarding the number of days needed to","page_number":126,"box":{"x":135,"y":670,"width":746,"height":11}},{"id":"63593fa5-2398-4280-9232-0cd94020ff02","block_type":"box","text":"liquidate a por tfolio or the por tfolio’s underlying investments; and (b) the percentage of a Fund’s NAV","page_number":126,"box":{"x":135,"y":685,"width":721,"height":12}},{"id":"fcf7a172-640a-46bb-a265-5a310e580f7c","block_type":"box","text":"invested in a par ticular liquidity tier under BlackRock’s global liquidity risk methodology.","page_number":126,"box":{"x":135,"y":701,"width":621,"height":11}},{"id":"632e56cf-ac25-4de7-bf92-092fa81cc7b1","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":723,"width":6,"height":5}},{"id":"a279645f-2fed-4eab-8370-2460aa679119","block_type":"box","text":"The dissemination of position-level liquidity metrics data and any non-public regulatory data pursuant to SEC","page_number":126,"box":{"x":134,"y":721,"width":771,"height":11}},{"id":"d1c4267f-c430-4b3b-9744-816f1e42c5eb","block_type":"box","text":"Rule 22e-4 (including SEC liquidity tiering) is not permitted unless pre-approved.","page_number":126,"box":{"x":135,"y":736,"width":568,"height":11}},{"id":"0f71ecf6-239d-4337-90c4-568d80f2dd85","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":759,"width":6,"height":4}},{"id":"99a6c8ce-305d-49de-ab7d-9791acaa06f6","block_type":"box","text":"Disclosure of Liquidity Metrics pursuant to Section 3 of the Policy should be reviewed by BlackRock’s Risk","page_number":126,"box":{"x":135,"y":756,"width":755,"height":11}},{"id":"0c9b4665-24e6-469c-8e6e-73c240716a16","block_type":"box","text":"and Quantitative Analysis Group and the relevant por tfolio management team prior to dissemination.","page_number":126,"box":{"x":134,"y":771,"width":716,"height":11}},{"id":"2139f1e2-de01-419e-b50d-2f65b4c17013","block_type":"box","text":"Information that is non-material or that may be obtained from public sources (i.e., information that has been","page_number":126,"box":{"x":102,"y":794,"width":771,"height":11}},{"id":"76ee27c4-3299-4c03-970b-82e08c4df86f","block_type":"box","text":"publicly disclosed via a filing with the SEC (e.g., a fund’s annual repor t and annual financial statements), through a","page_number":126,"box":{"x":70,"y":809,"width":819,"height":11}},{"id":"8a706161-fa94-4bdd-807b-0938e2859e78","block_type":"box","text":"press release or placement on a publicly-available internet website), or information derived or calculated from such","page_number":126,"box":{"x":70,"y":824,"width":817,"height":11}},{"id":"0c1f9417-b0c5-4bef-b6d2-0fe406093d2a","block_type":"box","text":"public sources shall not be deemed Confidential Information.","page_number":126,"box":{"x":70,"y":839,"width":433,"height":11}},{"id":"a6c1dcb2-788e-4c3d-8d4c-68477ef5013e","block_type":"box","text":"Por tfolio Holdings and Por tfolio Characteristics may be disclosed in accordance with the below schedule or as","page_number":126,"box":{"x":102,"y":862,"width":784,"height":11}},{"id":"4033c3d1-1850-4650-9fa3-e5958cd9aa6a","block_type":"box","text":"specified in a Fund’s registration statement.","page_number":126,"box":{"x":69,"y":877,"width":314,"height":11}},{"id":"a48cb260-2563-4461-a338-a902ea2e2589","block_type":"box","text":"II-86","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ef5e831e-2533-472f-9ad4-19e5eb7ad9b6","block_type":"box","text":"NM1026U-5982643-126/241","page_number":126,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"a3ae4200-711b-4bd0-9264-6e4b6ccd0608","block_type":"box","text":"Open-End Mutual Funds (Excluding Money Market Funds)","page_number":127,"box":{"x":279,"y":54,"width":419,"height":11}},{"id":"b50062af-0383-48e4-8727-410d6dcf50a7","block_type":"box","text":"Time Periods for Portfolio Holdings","page_number":127,"box":{"x":440,"y":69,"width":254,"height":11}},{"id":"0f9a8d33-a191-4d83-b3bb-de14d4fb51d4","block_type":"box","text":"Prior to 20 Calendar Days After Month-End 20 Calendar Days After Month-End To Public","page_number":127,"box":{"x":239,"y":91,"width":663,"height":11}},{"id":"0e1d2c84-697c-4cfd-bb8a-6dd9b4e9ed6c","block_type":"box","text":"Filing","page_number":127,"box":{"x":722,"y":106,"width":38,"height":11}},{"id":"2e137947-e5ca-4be7-a288-3e2071ac2e9b","block_type":"box","text":"Portfolio","page_number":127,"box":{"x":75,"y":129,"width":61,"height":9}},{"id":"e213ef24-a471-452f-b967-8fbcf47a185f","block_type":"box","text":"Holdings","page_number":127,"box":{"x":75,"y":144,"width":61,"height":11}},{"id":"cf36d75d-e319-4986-b913-f4f78675bf42","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":127,"box":{"x":231,"y":129,"width":297,"height":9}},{"id":"1bb733ec-8e8b-4a43-865a-dd5c335cc04a","block_type":"box","text":"confidentiality agreement and Chief","page_number":127,"box":{"x":231,"y":144,"width":252,"height":11}},{"id":"5977d80b-ed8c-4fdd-b6dc-153cc9363077","block_type":"box","text":"Compliance Officer (“CCO”) approval.","page_number":127,"box":{"x":231,"y":159,"width":265,"height":11}},{"id":"bc66a8b9-5a8f-46f1-8fc5-79c8553e7dd9","block_type":"box","text":"May disclose to shareholders, prospective","page_number":127,"box":{"x":578,"y":129,"width":300,"height":11}},{"id":"de61877b-8a18-4138-9bed-aaa8124dfe3a","block_type":"box","text":"shareholders, intermediaries, consultants","page_number":127,"box":{"x":578,"y":144,"width":297,"height":11}},{"id":"a9cc458c-3162-4455-b764-97b98ca3fc33","block_type":"box","text":"and third-par ty data providers (e.g., Lipper,","page_number":127,"box":{"x":578,"y":160,"width":302,"height":11}},{"id":"660e1c12-82e3-4c12-b70d-2d7bb518041e","block_type":"box","text":"Morningstar and Bloomberg), except with","page_number":127,"box":{"x":578,"y":175,"width":291,"height":11}},{"id":"18808b43-38d8-4121-99a6-46db8e8ac798","block_type":"box","text":"respect to Global Allocation funds","page_number":127,"box":{"x":578,"y":189,"width":239,"height":11}},{"id":"c85180dc-b381-42be-9382-e3b925fdd297","block_type":"box","text":"1","page_number":127,"box":{"x":818,"y":190,"width":4,"height":4}},{"id":"c5430db3-332a-43bc-9b64-8fa6fd4f6155","block_type":"box","text":",","page_number":127,"box":{"x":824,"y":197,"width":2,"height":3}},{"id":"a8c59fd7-a591-4425-bbfd-2b6336daa2df","block_type":"box","text":"BlackRock Core Bond Por tfolio and","page_number":127,"box":{"x":578,"y":205,"width":247,"height":9}},{"id":"4ac24e25-4eb2-449d-b692-7af52ea68f6c","block_type":"box","text":"BlackRock Strategic Income Oppor tunities","page_number":127,"box":{"x":578,"y":220,"width":299,"height":11}},{"id":"bcc3307b-874f-4464-b93e-16414c16fc93","block_type":"box","text":"Por tfolio of BlackRock Funds V, BlackRock","page_number":127,"box":{"x":578,"y":235,"width":300,"height":10}},{"id":"8444dd7a-74e5-4fce-9aef-06949997504b","block_type":"box","text":"Strategic Global Bond Fund, Inc., BlackRock","page_number":127,"box":{"x":578,"y":250,"width":312,"height":11}},{"id":"54fab178-9aae-412e-8253-6f32b0f8831e","block_type":"box","text":"Total Return Fund of BlackRock Bond Fund,","page_number":127,"box":{"x":577,"y":265,"width":306,"height":11}},{"id":"445d9a1d-0f39-4764-be00-2861f7700e1d","block_type":"box","text":"Inc., BlackRock Total Return V.I. Fund of","page_number":127,"box":{"x":578,"y":280,"width":284,"height":11}},{"id":"3cea2cf9-384b-48af-8c66-202be991c2c5","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.,","page_number":127,"box":{"x":578,"y":295,"width":284,"height":11}},{"id":"bd68a980-d253-45a1-b70c-958804b25728","block_type":"box","text":"BlackRock Sustainable Total Return Fund of","page_number":127,"box":{"x":578,"y":310,"width":311,"height":9}},{"id":"b58a6d08-d004-467b-9533-ed01504c5259","block_type":"box","text":"BlackRock Bond Fund, Inc., BlackRock","page_number":127,"box":{"x":578,"y":326,"width":272,"height":10}},{"id":"005b568b-4a58-461a-bef8-4b1f94a864f1","block_type":"box","text":"Unconstrained Equity Fund and BlackRock","page_number":127,"box":{"x":578,"y":341,"width":298,"height":11}},{"id":"d19bd24e-e018-438a-a7e4-18126820266a","block_type":"box","text":"Systematic Multi-Strategy Fund of BlackRock","page_number":127,"box":{"x":578,"y":356,"width":316,"height":11}},{"id":"18218ab1-c635-4e06-b9e4-b6b00cd1d61d","block_type":"box","text":"Funds IV, and BlackRock Global Equity Market","page_number":127,"box":{"x":578,"y":371,"width":325,"height":11}},{"id":"14a7cb2f-63ba-4c1d-87d5-e1d54776a056","block_type":"box","text":"Neutral Fund of BlackRock Funds","page_number":127,"box":{"x":578,"y":386,"width":234,"height":9}},{"id":"8a16d04e-9e7a-41f2-989f-1063241a3922","block_type":"box","text":"SM","page_number":127,"box":{"x":813,"y":386,"width":10,"height":5}},{"id":"4a47ad9e-bcf3-4b98-beb1-2b0143b0c2ad","block_type":"box","text":"(each of","page_number":127,"box":{"x":830,"y":386,"width":57,"height":11}},{"id":"14aeccc2-5a29-40f7-86e9-f494ac1c8e83","block_type":"box","text":"whose por tfolio holdings may be disclosed","page_number":127,"box":{"x":577,"y":401,"width":303,"height":11}},{"id":"7940e6dc-039e-4823-965b-934dc4a8910c","block_type":"box","text":"60 calendar days after month-end).","page_number":127,"box":{"x":578,"y":416,"width":248,"height":11}},{"id":"7d97d22a-96e8-45fb-811b-9e44092f7724","block_type":"box","text":"BlackRock generally discloses por tfolio","page_number":127,"box":{"x":578,"y":431,"width":277,"height":12}},{"id":"ef9ec7ed-1112-43b3-9c85-9184bc994c67","block_type":"box","text":"holdings information on the lag times","page_number":127,"box":{"x":578,"y":446,"width":264,"height":12}},{"id":"df377d3d-4b39-4a9a-920f-94e91bd26936","block_type":"box","text":"established herein on its public website. If","page_number":127,"box":{"x":578,"y":462,"width":302,"height":11}},{"id":"863856b9-6296-4613-b44a-ae4d0274c533","block_type":"box","text":"Por tfolio Holdings are disclosed to one par ty,","page_number":127,"box":{"x":578,"y":477,"width":320,"height":11}},{"id":"4a13b96d-6da0-4256-8321-740226dd7a1d","block_type":"box","text":"they must also be disclosed to all other","page_number":127,"box":{"x":577,"y":492,"width":283,"height":11}},{"id":"5ea173b3-dee0-404a-8e66-6388bf914e43","block_type":"box","text":"par ties requesting the same information.","page_number":127,"box":{"x":578,"y":507,"width":291,"height":11}},{"id":"926bba22-ebfe-45f0-9e48-d5d90cb7d3cb","block_type":"box","text":"Time Periods for Portfolio Characteristics","page_number":127,"box":{"x":416,"y":530,"width":302,"height":9}},{"id":"a5687d4a-568e-45eb-98ec-fff4980276be","block_type":"box","text":"Portfolio","page_number":127,"box":{"x":75,"y":552,"width":61,"height":9}},{"id":"0abb4c0a-a048-47a1-bd23-80f0989546d4","block_type":"box","text":"Characteristics","page_number":127,"box":{"x":74,"y":568,"width":111,"height":8}},{"id":"f413aa0c-a945-40ab-9ab9-3b0b894f01b6","block_type":"box","text":"(Excluding","page_number":127,"box":{"x":75,"y":583,"width":76,"height":11}},{"id":"b36dadff-8c04-4ea3-b706-95ea4d904a83","block_type":"box","text":"Liquidity","page_number":127,"box":{"x":75,"y":598,"width":60,"height":11}},{"id":"ebfe3aa2-bf4f-41f2-8639-62c96fe08df9","block_type":"box","text":"Metrics)","page_number":127,"box":{"x":75,"y":613,"width":60,"height":11}},{"id":"1a0df273-810b-4f2d-922e-99ade6aa5683","block_type":"box","text":"Prior to 5 Calendar Days After Month-End 5 Calendar Days After Month-End","page_number":127,"box":{"x":244,"y":552,"width":617,"height":11}},{"id":"a0adcb51-f81a-4b74-bd36-058675dc1190","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":127,"box":{"x":231,"y":575,"width":297,"height":9}},{"id":"4554a408-55c9-463c-a2d9-31d4fbc31365","block_type":"box","text":"confidentiality agreement and CCO approval.","page_number":127,"box":{"x":231,"y":590,"width":315,"height":11}},{"id":"6e17e388-9675-4394-84ae-a835d13a5f1c","block_type":"box","text":"1","page_number":127,"box":{"x":548,"y":591,"width":4,"height":4}},{"id":"fabfed8d-2327-4a66-aa48-bf0715b47681","block_type":"box","text":",","page_number":127,"box":{"x":554,"y":598,"width":2,"height":3}},{"id":"97d119d9-767c-4a85-96f7-241e9d204d9c","block_type":"box","text":"2","page_number":127,"box":{"x":231,"y":606,"width":4,"height":4}},{"id":"b8c19873-e14a-4e99-8449-e8dc2a72a097","block_type":"box","text":"May disclose to shareholders, prospective","page_number":127,"box":{"x":578,"y":575,"width":300,"height":11}},{"id":"9e0b35ec-9612-4caf-bee0-1972048de9a1","block_type":"box","text":"shareholders, intermediaries, consultants","page_number":127,"box":{"x":578,"y":590,"width":297,"height":11}},{"id":"ccc4d285-462e-4f89-8391-905f83616350","block_type":"box","text":"and third-par ty data providers (e.g., Lipper,","page_number":127,"box":{"x":578,"y":606,"width":302,"height":11}},{"id":"68ff7da9-b7d8-4b5b-ac0b-ea7cf183762e","block_type":"box","text":"Morningstar and Bloomberg). If Por tfolio","page_number":127,"box":{"x":578,"y":620,"width":285,"height":12}},{"id":"1ba349fd-3a10-475b-81de-34862c774962","block_type":"box","text":"Characteristics are disclosed to one par ty,","page_number":127,"box":{"x":578,"y":636,"width":300,"height":11}},{"id":"e08082ea-1c26-4292-9a1f-8930c4fb192a","block_type":"box","text":"they must also be disclosed to all other","page_number":127,"box":{"x":577,"y":651,"width":283,"height":11}},{"id":"a90f5442-80c1-4f11-8748-4651879b1870","block_type":"box","text":"par ties requesting the same information.","page_number":127,"box":{"x":578,"y":666,"width":291,"height":11}},{"id":"373a1290-a368-49ec-b630-e482fb937679","block_type":"box","text":"Portfolio","page_number":127,"box":{"x":75,"y":688,"width":61,"height":9}},{"id":"82446924-6ef9-46d2-aa58-8923ab021087","block_type":"box","text":"Characteristics —","page_number":127,"box":{"x":74,"y":704,"width":133,"height":9}},{"id":"e2027b44-7094-4c97-89fc-a0c05486b45d","block_type":"box","text":"Liquidity Metrics","page_number":127,"box":{"x":75,"y":719,"width":121,"height":11}},{"id":"b72d3d9a-2826-43cf-a3f0-69d7b8e219f1","block_type":"box","text":"Prior to 60 Calendar Days After Calendar","page_number":127,"box":{"x":246,"y":688,"width":297,"height":12}},{"id":"8551d6f5-49e2-4eb0-81fb-a7865a88f1b5","block_type":"box","text":"Quarter-End","page_number":127,"box":{"x":351,"y":704,"width":85,"height":10}},{"id":"afbd0474-6d43-4557-a930-84aca857871d","block_type":"box","text":"60 Calendar Days After Calendar Quarter","page_number":127,"box":{"x":589,"y":688,"width":303,"height":12}},{"id":"19858f49-6e2b-45b2-8a0e-32350d365ebc","block_type":"box","text":"End","page_number":127,"box":{"x":728,"y":704,"width":25,"height":9}},{"id":"b69f1268-aa1f-4588-abee-fcb8f8707c37","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":127,"box":{"x":231,"y":726,"width":297,"height":9}},{"id":"42947950-5787-4c39-a14b-809cf6848c92","block_type":"box","text":"confidentiality agreement and CCO approval.","page_number":127,"box":{"x":231,"y":741,"width":315,"height":12}},{"id":"ce13f7b8-bbaa-41fc-b8ae-f7d0a8735149","block_type":"box","text":"May disclose to shareholders, prospective","page_number":127,"box":{"x":578,"y":726,"width":300,"height":11}},{"id":"b2ba990b-2062-486c-ad8d-130df3da8f3e","block_type":"box","text":"shareholders, intermediaries and","page_number":127,"box":{"x":578,"y":742,"width":235,"height":10}},{"id":"8584feed-4b5f-4dd7-9753-816e7bf0b1f8","block_type":"box","text":"consultants; provided por tfolio management","page_number":127,"box":{"x":577,"y":756,"width":316,"height":12}},{"id":"254873c1-b80f-4d09-9fa0-5f911603f22d","block_type":"box","text":"has approved. If Liquidity Metrics are","page_number":127,"box":{"x":578,"y":772,"width":263,"height":11}},{"id":"bbf0fa36-6413-46d2-90bc-43e66347d07a","block_type":"box","text":"disclosed to one par ty, they must also be","page_number":127,"box":{"x":578,"y":787,"width":294,"height":11}},{"id":"49f40208-70c4-48dd-9cf7-335c379aeacc","block_type":"box","text":"disclosed to all other par ties requesting the","page_number":127,"box":{"x":578,"y":802,"width":312,"height":11}},{"id":"c839f574-8847-47a9-b338-d699f538057d","block_type":"box","text":"same information.","page_number":127,"box":{"x":578,"y":817,"width":128,"height":9}},{"id":"7ce2ad55-4abc-4050-8644-2bfe2333b611","block_type":"box","text":"1","page_number":127,"box":{"x":69,"y":842,"width":3,"height":4}},{"id":"c095a54f-c2fb-4b6b-8492-6977c5f71ef9","block_type":"box","text":"Global Allocation Exception:","page_number":127,"box":{"x":93,"y":842,"width":164,"height":9}},{"id":"0e300d0b-028c-45dd-b298-6a9b8c557311","block_type":"box","text":"For purposes of por tfolio holdings, Global Allocation funds include BlackRock Global Allocation Fund, Inc.,","page_number":127,"box":{"x":263,"y":842,"width":599,"height":9}},{"id":"4e690593-241a-46a0-aa60-4cf7ce337f12","block_type":"box","text":"BlackRock Global Allocation Por tfolio of BlackRock Series Fund, Inc. and BlackRock Global Allocation V.I. Fund of BlackRock Variable Series","page_number":127,"box":{"x":94,"y":852,"width":792,"height":8}},{"id":"e1ebe086-436c-4907-a39e-17e05ffee77c","block_type":"box","text":"Funds, Inc. Information on cer tain Por tfolio Characteristics of BlackRock Global Allocation Por tfolio and BlackRock Global Allocation V.I. Fund","page_number":127,"box":{"x":94,"y":862,"width":801,"height":9}},{"id":"67f363c9-5a43-44df-8488-831ff79815c3","block_type":"box","text":"is available, upon request, to insurance companies that use these funds as underlying investments (and to advisers and sub-advisers of funds","page_number":127,"box":{"x":94,"y":872,"width":813,"height":9}},{"id":"712d12c6-94b3-4605-b0c5-65773251a943","block_type":"box","text":"invested in BlackRock Global Allocation Por tfolio and BlackRock Global Allocation V.I. Fund) in their variable annuity contracts and variable life","page_number":127,"box":{"x":94,"y":882,"width":806,"height":9}},{"id":"fbff8420-c9f0-4e09-b4b5-5106137db13e","block_type":"box","text":"insurance policies on a weekly basis (or such other period as may be determined to be appropriate). Disclosure of such characteristics of","page_number":127,"box":{"x":94,"y":892,"width":784,"height":9}},{"id":"2cdb82da-ea95-40c5-891c-9e3927c88fab","block_type":"box","text":"these two funds constitutes a disclosure of Confidential Information and is being made for reasons deemed appropriate by BlackRock and in","page_number":127,"box":{"x":93,"y":902,"width":803,"height":10}},{"id":"d363ed85-97a6-460c-9084-5510e5c8f756","block_type":"box","text":"II-87","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4402c2f4-346a-4649-ad75-008b06d7c48c","block_type":"box","text":"NM1026U-5982643-127/241","page_number":127,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"4dcfaa53-e476-4202-8629-d2fa6943b692","block_type":"box","text":"accordance with the requirements set for th in these guidelines. If Por tfolio Characteristics are disclosed to one par ty, they must also be","page_number":128,"box":{"x":93,"y":45,"width":778,"height":9}},{"id":"88acaeea-880b-4724-8264-b585a655bbd6","block_type":"box","text":"disclosed to all other par ties requesting the same information.","page_number":128,"box":{"x":93,"y":55,"width":357,"height":9}},{"id":"1666e22d-86a0-4027-9be0-15186ebd6cf5","block_type":"box","text":"2","page_number":128,"box":{"x":69,"y":68,"width":3,"height":3}},{"id":"4f569a3b-828d-412c-9ac5-82306c29916c","block_type":"box","text":"Strategic Income Opportunities Exception:","page_number":128,"box":{"x":93,"y":68,"width":249,"height":9}},{"id":"512ef352-731c-40e7-8673-158ba05037b6","block_type":"box","text":"Information on cer tain Por tfolio Characteristics of BlackRock Strategic Income Oppor tunities","page_number":128,"box":{"x":348,"y":68,"width":525,"height":9}},{"id":"240777d9-f7a4-40b2-a80b-6c4fa5528a7b","block_type":"box","text":"Por tfolio of BlackRock Funds V may be made available to shareholders, prospective shareholders, intermediaries, consultants and third par ty","page_number":128,"box":{"x":94,"y":78,"width":806,"height":9}},{"id":"15ab967d-97d9-4623-95bb-298853939f79","block_type":"box","text":"data providers, upon request on a more frequent basis as may be deemed appropriate by BlackRock from time-to-time. If Por tfolio","page_number":128,"box":{"x":93,"y":88,"width":741,"height":9}},{"id":"bac69b59-aaf0-43f2-a733-a144d56510b0","block_type":"box","text":"Characteristics are disclosed to one par ty, they must also be disclosed to all other par ties requesting the same information.","page_number":128,"box":{"x":93,"y":98,"width":709,"height":9}},{"id":"bc4ae34a-2a28-44eb-be48-b06992a9964b","block_type":"box","text":"Open-End Mutual Funds and ETFs (Excluding Money Market Mutual Funds and MM ETFs)","page_number":128,"box":{"x":163,"y":117,"width":651,"height":11}},{"id":"f901dc37-cec5-47d7-bf32-d9125733d838","block_type":"box","text":"Time Periods for Portfolio Characteristics: Liquidity Metrics","page_number":128,"box":{"x":350,"y":132,"width":434,"height":11}},{"id":"94be91c0-fe0e-4941-945e-96ccd7a3beac","block_type":"box","text":"Prior to 60 Calendar Days After Calendar","page_number":128,"box":{"x":246,"y":154,"width":297,"height":11}},{"id":"e799e196-d98f-46d4-9c16-7412d3115e58","block_type":"box","text":"Quarter-End","page_number":128,"box":{"x":351,"y":169,"width":85,"height":11}},{"id":"0335729d-d61c-49cb-97ae-7829b9edfb68","block_type":"box","text":"60 Calendar Days After Calendar Quarter","page_number":128,"box":{"x":589,"y":154,"width":303,"height":11}},{"id":"962a5e30-dcc4-46a9-9984-d9af377a80a1","block_type":"box","text":"End","page_number":128,"box":{"x":728,"y":170,"width":25,"height":8}},{"id":"9494b508-846c-4c0d-87df-52a24641259e","block_type":"box","text":"Portfolio","page_number":128,"box":{"x":75,"y":192,"width":61,"height":9}},{"id":"a011a1db-70f8-47a0-9911-7360897a6c48","block_type":"box","text":"Characteristics —","page_number":128,"box":{"x":74,"y":207,"width":133,"height":9}},{"id":"f1ffe3ac-06bd-4889-9d85-bc28887a83b1","block_type":"box","text":"Liquidity Metrics","page_number":128,"box":{"x":75,"y":222,"width":121,"height":11}},{"id":"20ddc163-7dfb-4bfe-98bd-3dc3b4cc3312","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":128,"box":{"x":231,"y":192,"width":297,"height":9}},{"id":"16c158e7-bc4c-4834-9da3-933ed0fb0d88","block_type":"box","text":"confidentiality agreement and Chief","page_number":128,"box":{"x":231,"y":207,"width":252,"height":11}},{"id":"74ce5f6e-b597-404a-8770-8f6710405f20","block_type":"box","text":"Compliance Officer (“CCO”) approval.","page_number":128,"box":{"x":231,"y":222,"width":265,"height":11}},{"id":"0f057a53-9903-4cba-86ae-8dab0ae4f2b6","block_type":"box","text":"May disclose to shareholders, prospective","page_number":128,"box":{"x":578,"y":192,"width":300,"height":11}},{"id":"0d3d6ea0-4acb-4934-91b2-719070ac37af","block_type":"box","text":"shareholders, intermediaries and","page_number":128,"box":{"x":578,"y":207,"width":235,"height":11}},{"id":"cc1d0078-eadd-413a-9eec-002bb289dea1","block_type":"box","text":"consultants; provided por tfolio management","page_number":128,"box":{"x":577,"y":222,"width":316,"height":12}},{"id":"877c4d81-1f61-425f-99b5-fd5b5f3930e3","block_type":"box","text":"has approved. If Liquidity Metrics are","page_number":128,"box":{"x":578,"y":237,"width":263,"height":12}},{"id":"23f1965c-a4d6-47b3-9c22-0e107d45fae7","block_type":"box","text":"disclosed to one par ty, they must also be","page_number":128,"box":{"x":578,"y":253,"width":294,"height":11}},{"id":"f9f1b99d-bfd5-47f2-a4e1-a63e4df4739c","block_type":"box","text":"disclosed to all other par ties requesting the","page_number":128,"box":{"x":578,"y":268,"width":312,"height":11}},{"id":"34c7c6aa-81c5-4865-90bd-43baab29bef7","block_type":"box","text":"same information.","page_number":128,"box":{"x":578,"y":283,"width":128,"height":9}},{"id":"a64a0ba3-6a1d-4166-9043-ebe124537215","block_type":"box","text":"Money Market Mutual Funds and ETFs","page_number":128,"box":{"x":334,"y":324,"width":278,"height":11}},{"id":"7921f01a-421c-4eff-b597-7173757e4a93","block_type":"box","text":"3, 4, 5","page_number":128,"box":{"x":617,"y":324,"width":28,"height":5}},{"id":"a612b3d1-e7c2-4c19-b218-be7facc5235f","block_type":"box","text":"Money Market ETFs will comply with the disclosure requirements under both the Money Market (Rule 2a-7) Policy and","page_number":128,"box":{"x":75,"y":339,"width":834,"height":11}},{"id":"b1d39148-122b-466d-889e-b6560e7bf142","block_type":"box","text":"the ETF Rule (Rule 6c-11) Policy.","page_number":128,"box":{"x":74,"y":354,"width":229,"height":11}},{"id":"efbc233c-e6f8-4145-9788-c95efc6fe964","block_type":"box","text":"Time Periods","page_number":128,"box":{"x":520,"y":369,"width":94,"height":9}},{"id":"dfbdadb6-fa8b-438b-bfb4-e8550b501df2","block_type":"box","text":"Prior to 5 Business Days","page_number":128,"box":{"x":305,"y":392,"width":178,"height":11}},{"id":"308c4106-56a0-4210-a7c1-7ef617e5212f","block_type":"box","text":"After Month-End","page_number":128,"box":{"x":335,"y":407,"width":117,"height":9}},{"id":"826a701c-0ab5-412f-b939-3e213c1392e1","block_type":"box","text":"5 Business Days After","page_number":128,"box":{"x":660,"y":392,"width":161,"height":11}},{"id":"33789645-d685-435a-b9ca-e4fa5f0b5564","block_type":"box","text":"Month-End to Date of Public Filing","page_number":128,"box":{"x":616,"y":407,"width":250,"height":11}},{"id":"f406598d-7694-431b-9a90-47bd0450112b","block_type":"box","text":"Portfolio","page_number":128,"box":{"x":75,"y":430,"width":61,"height":9}},{"id":"3c2422b9-aa97-4efa-b144-6aca7be0fede","block_type":"box","text":"Holdings","page_number":128,"box":{"x":75,"y":445,"width":61,"height":11}},{"id":"b53c2da4-dabf-4890-9cce-2edae23b9110","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":128,"box":{"x":231,"y":430,"width":297,"height":9}},{"id":"86705053-3303-432d-891c-f8e966525258","block_type":"box","text":"confidentiality agreement and CCO approval","page_number":128,"box":{"x":231,"y":445,"width":310,"height":11}},{"id":"50f491bb-fd7a-4099-950d-7f6f4f4a77af","block_type":"box","text":"except the following Por tfolio Holdings","page_number":128,"box":{"x":231,"y":460,"width":271,"height":11}},{"id":"6fd062ee-8d27-47ed-bfb1-842be71035c3","block_type":"box","text":"information is required to be released on the","page_number":128,"box":{"x":232,"y":475,"width":318,"height":11}},{"id":"11c66d04-f403-4362-9816-64324aa29a8a","block_type":"box","text":"website pursuant to Rule 2a-7 on a monthly","page_number":128,"box":{"x":231,"y":490,"width":311,"height":11}},{"id":"ae967ba9-d050-4a8e-a85b-04ff78cd6355","block_type":"box","text":"basis: name of issuer, category of","page_number":128,"box":{"x":231,"y":505,"width":244,"height":11}},{"id":"29201a5f-f2ee-4d0b-b6c6-3daf49a12dac","block_type":"box","text":"investment, CUSIP, principal amount, maturity","page_number":128,"box":{"x":232,"y":520,"width":325,"height":11}},{"id":"10a68063-7754-4375-a4bb-ad2c1fab1b78","block_type":"box","text":"dates, yields and value.","page_number":128,"box":{"x":231,"y":536,"width":167,"height":10}},{"id":"96affb31-f42c-4b2e-b14d-e88b89aff8c2","block_type":"box","text":"BlackRock will release this information on the","page_number":128,"box":{"x":232,"y":550,"width":324,"height":9}},{"id":"1c646698-b89f-4aea-ac90-47bfa247100d","block_type":"box","text":"following timelines or on a more frequent","page_number":128,"box":{"x":231,"y":566,"width":292,"height":11}},{"id":"00d8a83e-d62d-4e1b-950a-8fd899bfca76","block_type":"box","text":"timeline than required under Rule 2a-7:","page_number":128,"box":{"x":231,"y":581,"width":279,"height":11}},{"id":"0a77a7a0-fa79-467d-a59c-7616ce012c0c","block_type":"box","text":"•","page_number":128,"box":{"x":234,"y":599,"width":4,"height":3}},{"id":"81618a0c-9aa3-4dbf-adc9-fe4b7fa1279f","block_type":"box","text":"Government MMFs: Daily por tfolio holdings","page_number":128,"box":{"x":241,"y":596,"width":306,"height":11}},{"id":"b8375d50-f7bd-4e47-bbe1-fd024ad6c465","block_type":"box","text":"are released on the website on a one","page_number":128,"box":{"x":241,"y":609,"width":266,"height":8}},{"id":"42787ecb-8994-4d4a-9443-929c92a2585d","block_type":"box","text":"business day lag.","page_number":128,"box":{"x":241,"y":621,"width":122,"height":11}},{"id":"9052747a-52d7-45a8-8376-cdd487b2572c","block_type":"box","text":"•","page_number":128,"box":{"x":234,"y":637,"width":4,"height":3}},{"id":"e76bbc74-9266-444b-a0dd-76a86697c736","block_type":"box","text":"Money Market ETFs (prime and","page_number":128,"box":{"x":242,"y":634,"width":218,"height":11}},{"id":"e357c473-84f1-4037-a1b2-db1cd49d5d32","block_type":"box","text":"government): Daily por tfolio holdings","page_number":128,"box":{"x":240,"y":646,"width":261,"height":11}},{"id":"8067743d-6f9b-4a35-8683-d00280fc3399","block_type":"box","text":"information released on a daily basis","page_number":128,"box":{"x":242,"y":659,"width":262,"height":11}},{"id":"db538300-2892-4886-a818-79fabf7bceca","block_type":"box","text":"pursuant to ETF rule requirements.","page_number":128,"box":{"x":242,"y":672,"width":245,"height":10}},{"id":"3ea4dfbc-8b82-46b5-b07c-ba7a6462d75a","block_type":"box","text":"•","page_number":128,"box":{"x":234,"y":687,"width":4,"height":3}},{"id":"936298b9-d2b5-4097-b1c7-bedd608ca946","block_type":"box","text":"Cer tain Money Market Mutual Funds and","page_number":128,"box":{"x":241,"y":684,"width":289,"height":11}},{"id":"c9eb6f84-2723-4018-891d-e779c05a7674","block_type":"box","text":"Money Market ETFs: Weekly schedule of","page_number":128,"box":{"x":242,"y":697,"width":285,"height":11}},{"id":"5ce13364-bf84-4149-b534-35ffd0f0de5e","block_type":"box","text":"investments (PDF) is posted to the website","page_number":128,"box":{"x":242,"y":709,"width":304,"height":11}},{"id":"d64b2b3c-c890-4de8-8085-ee6a28754bcb","block_type":"box","text":"at least one business day after week-end.","page_number":128,"box":{"x":241,"y":722,"width":296,"height":11}},{"id":"d87e59b1-5e98-4782-85b6-3843d16da935","block_type":"box","text":"(The Cash business identifies those Funds.)","page_number":128,"box":{"x":241,"y":734,"width":312,"height":11}},{"id":"3cde1323-a45f-4bef-8a1a-0bfd633c88ff","block_type":"box","text":"May disclose to shareholders, prospective","page_number":128,"box":{"x":578,"y":430,"width":300,"height":11}},{"id":"91c75e11-8c99-4d8f-8527-282033644c48","block_type":"box","text":"shareholders, intermediaries, consultants","page_number":128,"box":{"x":578,"y":445,"width":297,"height":10}},{"id":"cd028e74-a0cb-43ef-94ae-b4fbdfc51e8a","block_type":"box","text":"and third par ty data providers. If Por tfolio","page_number":128,"box":{"x":578,"y":460,"width":294,"height":11}},{"id":"1f746552-af5a-41f6-89e9-ea2a6115d6bb","block_type":"box","text":"Holdings are disclosed to one par ty, they","page_number":128,"box":{"x":578,"y":475,"width":291,"height":11}},{"id":"f697e1dc-973f-4ad5-9727-b520067f064e","block_type":"box","text":"must also be disclosed to all other par ties","page_number":128,"box":{"x":578,"y":490,"width":302,"height":11}},{"id":"23698080-698f-4dc3-b1dc-63f182e582b1","block_type":"box","text":"requesting the same information.","page_number":128,"box":{"x":578,"y":505,"width":236,"height":11}},{"id":"bcb0e33b-820c-4f67-b70e-e243b6fa2640","block_type":"box","text":"II-88","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6b69cca6-a4de-44da-add2-c2d6092bdbb5","block_type":"box","text":"NM1026U-5982643-128/241","page_number":128,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"baf81970-3fe8-4ded-bc77-0e29e243e07a","block_type":"box","text":"Portfolio","page_number":129,"box":{"x":75,"y":49,"width":61,"height":9}},{"id":"e1aa6660-6e39-4925-a80c-04a218c1ec28","block_type":"box","text":"Characteristics","page_number":129,"box":{"x":74,"y":64,"width":111,"height":9}},{"id":"ec0fa592-edd8-4a0f-afdf-a28b616da90d","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":129,"box":{"x":231,"y":49,"width":297,"height":9}},{"id":"526ba064-88a4-4488-aa81-2f5a8e42a41d","block_type":"box","text":"confidentiality agreement and CCO approval","page_number":129,"box":{"x":231,"y":64,"width":310,"height":11}},{"id":"1a661c68-e0fe-4b29-8d95-0fc4294bdb18","block_type":"box","text":"except the following information is:","page_number":129,"box":{"x":231,"y":79,"width":247,"height":12}},{"id":"1e74336a-e20d-4218-adeb-82194b000c9f","block_type":"box","text":"(i) required to be released on the Fund’s","page_number":129,"box":{"x":231,"y":95,"width":287,"height":10}},{"id":"4bf6b238-b4cf-442f-923c-6ba49b3d79d2","block_type":"box","text":"website daily (i.e., each Business Day as of","page_number":129,"box":{"x":231,"y":109,"width":311,"height":12}},{"id":"047beb30-7782-48be-b5c6-f2efc0859cda","block_type":"box","text":"the end of the preceding Business Day):","page_number":129,"box":{"x":231,"y":125,"width":285,"height":11}},{"id":"a6bc21ff-ee35-46ec-84aa-99a01256f4f2","block_type":"box","text":"•","page_number":129,"box":{"x":234,"y":143,"width":4,"height":3}},{"id":"8e53f2c1-704d-4221-8d55-75c244a20b63","block_type":"box","text":"Historical NAVs calculated based on market","page_number":129,"box":{"x":242,"y":140,"width":309,"height":9}},{"id":"f7681846-6fdb-42df-94d1-4b80b3125943","block_type":"box","text":"factors (e.g., marked to market).","page_number":129,"box":{"x":240,"y":152,"width":231,"height":12}},{"id":"e79d9833-e0e9-4874-a323-bf855f9b185e","block_type":"box","text":"•","page_number":129,"box":{"x":234,"y":168,"width":4,"height":3}},{"id":"7c4f6003-abff-4979-9970-4b98c40aa6af","block_type":"box","text":"Percentage of fund assets invested in daily","page_number":129,"box":{"x":241,"y":165,"width":307,"height":11}},{"id":"c2755367-3aed-45af-a6fd-534cc7dcbf0a","block_type":"box","text":"and weekly liquid assets (as defined under","page_number":129,"box":{"x":241,"y":178,"width":304,"height":11}},{"id":"2e807f61-4d20-49fc-bc6e-c904b459fad9","block_type":"box","text":"Rule 2a-7).","page_number":129,"box":{"x":242,"y":190,"width":75,"height":11}},{"id":"1b1649f7-8ddb-4fe3-b469-081e05721c82","block_type":"box","text":"•","page_number":129,"box":{"x":234,"y":206,"width":4,"height":3}},{"id":"91f1e686-29e4-4744-97d6-7adc5f11615e","block_type":"box","text":"Daily net flow information (inflows less","page_number":129,"box":{"x":242,"y":203,"width":273,"height":11}},{"id":"748dc286-4130-41dc-a52a-68b58b184623","block_type":"box","text":"outflows).","page_number":129,"box":{"x":241,"y":215,"width":67,"height":11}},{"id":"59e6d6a8-ab28-4551-b906-c712a55abcdf","block_type":"box","text":"•","page_number":129,"box":{"x":234,"y":231,"width":4,"height":3}},{"id":"f6a80a7b-68c8-43d6-9e50-91bb429ac33d","block_type":"box","text":"Other information as may be required by","page_number":129,"box":{"x":241,"y":228,"width":287,"height":11}},{"id":"6c9bfb40-74f8-486d-88f3-82f804489123","block_type":"box","text":"Rule 2a-7.","page_number":129,"box":{"x":242,"y":241,"width":70,"height":9}},{"id":"64545ddc-6806-4892-b694-0bdbab88f700","block_type":"box","text":"(ii) voluntarily released on the Fund’s","page_number":129,"box":{"x":241,"y":253,"width":262,"height":11}},{"id":"d9005653-4e12-4148-88a5-49321b47ccbe","block_type":"box","text":"website daily (i.e., each Business Day as of","page_number":129,"box":{"x":240,"y":266,"width":312,"height":11}},{"id":"7d48dbf0-05a6-47d3-9053-9514f7f7e540","block_type":"box","text":"the end of the preceding Business Day):","page_number":129,"box":{"x":240,"y":278,"width":285,"height":12}},{"id":"4e26598b-29a4-45a8-8603-917565a7a4fd","block_type":"box","text":"•","page_number":129,"box":{"x":234,"y":294,"width":4,"height":3}},{"id":"eda25756-662c-44b4-ab1f-bad575845d37","block_type":"box","text":"Fund SEC yields, WAM (required monthly),","page_number":129,"box":{"x":242,"y":291,"width":295,"height":11}},{"id":"5cf66bf3-d09a-42f0-896b-6a9b2d73d2fe","block_type":"box","text":"WAL (required monthly),fund size and share","page_number":129,"box":{"x":240,"y":303,"width":310,"height":12}},{"id":"973aaf3f-22d4-451a-849b-1769ba584ec0","block_type":"box","text":"class size.","page_number":129,"box":{"x":241,"y":316,"width":73,"height":9}},{"id":"e85499a3-4f75-440e-beb4-d67a6f13644e","block_type":"box","text":"May disclose to shareholders, prospective","page_number":129,"box":{"x":578,"y":49,"width":300,"height":11}},{"id":"bda5cef9-d12f-4f21-a452-21b7a04c681b","block_type":"box","text":"shareholders, intermediaries, consultants","page_number":129,"box":{"x":578,"y":64,"width":297,"height":11}},{"id":"8b3c11c4-f386-4422-84d9-17d3275a7276","block_type":"box","text":"and third par ty data providers. If Por tfolio","page_number":129,"box":{"x":578,"y":79,"width":294,"height":11}},{"id":"9af6cae7-1b5d-48ba-8ee8-e6d0e0f3dff9","block_type":"box","text":"Characteristics are disclosed to one par ty,","page_number":129,"box":{"x":578,"y":95,"width":300,"height":11}},{"id":"9a161988-9863-4229-ba4c-a035d4a99824","block_type":"box","text":"they must also be disclosed to all other","page_number":129,"box":{"x":577,"y":110,"width":283,"height":11}},{"id":"323a4d4b-70c2-4419-9810-4573ca332123","block_type":"box","text":"par ties requesting the same information.","page_number":129,"box":{"x":578,"y":125,"width":291,"height":11}},{"id":"f272291d-1a39-429b-95fc-f34eb7c739da","block_type":"box","text":"3","page_number":129,"box":{"x":69,"y":334,"width":3,"height":3}},{"id":"396c7b70-72fe-42b5-8c26-afda4ddbc798","block_type":"box","text":"BlackRock Short Obligations Fund","page_number":129,"box":{"x":77,"y":334,"width":200,"height":9}},{"id":"baf4932c-1908-4a57-8628-c71d5050aa18","block_type":"box","text":". Fund’s holdings may be disclosed in accordance with the frequency for money market funds.","page_number":129,"box":{"x":278,"y":334,"width":534,"height":9}},{"id":"1d03ec69-5e22-471c-aaa9-9e3fe8fd9638","block_type":"box","text":"4","page_number":129,"box":{"x":68,"y":349,"width":4,"height":3}},{"id":"bf8187fb-c0f3-484c-ba22-9adb9cf96723","block_type":"box","text":"Circle Reserve Fund Exception","page_number":129,"box":{"x":76,"y":349,"width":179,"height":9}},{"id":"6b6f8c4e-bc2c-44fd-95c0-57df6d537aa3","block_type":"box","text":": Information on por tfolio holdings and cer tain por tfolio characteristics of the Circle Reserve Fund may be made","page_number":129,"box":{"x":257,"y":349,"width":637,"height":9}},{"id":"82bcad8d-d863-41fc-8a13-a573bbe6ea56","block_type":"box","text":"available to the shareholders of the Fund, upon request, on a more frequent basis as may be deemed appropriate by BlackRock from time-to-time.","page_number":129,"box":{"x":69,"y":361,"width":834,"height":9}},{"id":"ff28fa77-a356-4fcd-9bc1-0378bfd97952","block_type":"box","text":"5","page_number":129,"box":{"x":69,"y":377,"width":3,"height":3}},{"id":"9de61fa7-6539-47af-9b6d-8f7ac768271c","block_type":"box","text":"Por tfolio Holdings information is required to be disclosed daily on an ETF’s website under Rule 6c-11 under the 1940 Act. Specifically, on each","page_number":129,"box":{"x":77,"y":376,"width":814,"height":10}},{"id":"5dc0b496-4767-4d6d-82ce-4a13cbccd164","block_type":"box","text":"Business Day, prior to the opening of regular trading on the ETF’s primary listing exchange, an ETF is required to disclose on its website Por tfolio","page_number":129,"box":{"x":69,"y":389,"width":826,"height":9}},{"id":"257d50f5-f7d1-4c0b-b5ab-4644cf88777e","block_type":"box","text":"Holdings information as set for th in the ETF Rule Policy that will form the basis of the ETF’s next net asset value per share calculation.","page_number":129,"box":{"x":69,"y":402,"width":767,"height":9}},{"id":"23d1a4b4-4966-443d-bd74-1255ceeb3491","block_type":"box","text":"Guidelines for Confidential and Non-Material Information.","page_number":129,"box":{"x":102,"y":425,"width":404,"height":9}},{"id":"87012922-7acc-4036-b040-2000155ab985","block_type":"box","text":"Confidential Information may be disclosed to the","page_number":129,"box":{"x":512,"y":425,"width":346,"height":11}},{"id":"a006eeea-7805-4360-8f1c-57b3b19a94ac","block_type":"box","text":"Fund’s Board of Directors and its counsel, outside counsel for the Fund, the Fund’s auditors and to cer tain third-par ty","page_number":129,"box":{"x":70,"y":440,"width":839,"height":11}},{"id":"dc3bc9b8-c3c3-458d-a0e5-0037c39d0c4f","block_type":"box","text":"service providers (e.g., Fund administrator, Fund custodian, proxy voting service), securities lending borrowers, and","page_number":129,"box":{"x":69,"y":456,"width":820,"height":11}},{"id":"614a5018-3385-41d4-aa0d-e34260edf6c8","block_type":"box","text":"broker-dealers that are fund counterpar ties. Non-disclosure or confidentiality agreements will be in place with such","page_number":129,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"aa7d2ffb-c86b-4913-bc48-2a6ff3fe7a7a","block_type":"box","text":"service providers, borrowers, and broker-dealers. With respect to Confidential Information, the Fund’s CCO or his or","page_number":129,"box":{"x":69,"y":486,"width":824,"height":11}},{"id":"7612cc23-4b9a-46cd-b483-0be8e76dbce4","block_type":"box","text":"her designee may authorize the following, subject in the case of (ii) and (iii) to a confidentiality or non-disclosure","page_number":129,"box":{"x":69,"y":501,"width":797,"height":11}},{"id":"dbdcb498-8a76-4537-8513-dcddd17dd936","block_type":"box","text":"arrangement:","page_number":129,"box":{"x":69,"y":517,"width":93,"height":10}},{"id":"9032a8b5-77b0-4f64-8047-740db02c2e40","block_type":"box","text":"(i) the preparation and posting of the Fund’s Por tfolio Holdings and/or Por tfolio Characteristics to its website","page_number":129,"box":{"x":102,"y":536,"width":787,"height":11}},{"id":"2aa73b4a-174c-43de-97dc-e2699a7a8e75","block_type":"box","text":"on a more frequent basis than authorized above;","page_number":129,"box":{"x":131,"y":551,"width":346,"height":11}},{"id":"afe49066-d79f-4aed-97a0-22bd7ed836c6","block_type":"box","text":"(ii) the disclosure of the Fund’s Por tfolio Holdings to third-par ty service providers not noted above; and","page_number":129,"box":{"x":102,"y":571,"width":738,"height":12}},{"id":"251a65aa-3805-46b5-9eca-8a564a44802d","block_type":"box","text":"(iii) the disclosure of the Fund’s Por tfolio Holdings and/or Por tfolio Characteristics to other par ties for legitimate","page_number":129,"box":{"x":102,"y":591,"width":804,"height":12}},{"id":"500d817e-5fc5-4d37-9fa6-a31c135b3fb1","block_type":"box","text":"business purposes.","page_number":129,"box":{"x":131,"y":607,"width":138,"height":10}},{"id":"ac6581ac-6faf-44fe-8d91-1b594eb07907","block_type":"box","text":"Fact Sheets and Repor ts","page_number":129,"box":{"x":102,"y":629,"width":177,"height":11}},{"id":"16c0f876-d5f7-4334-8704-57847e18b7e9","block_type":"box","text":"•","page_number":129,"box":{"x":69,"y":652,"width":6,"height":5}},{"id":"2ce913da-9527-4a98-802f-a5a26fa46bb6","block_type":"box","text":"Fund Fact Sheets are available to shareholders, prospective shareholders, intermediaries and consultants on a","page_number":129,"box":{"x":102,"y":649,"width":793,"height":11}},{"id":"251dc3ce-aeb9-4739-b2cc-1da626029447","block_type":"box","text":"monthly or quar terly basis no earlier than the fifth calendar day after the end of a month or quar ter.","page_number":129,"box":{"x":102,"y":664,"width":707,"height":12}},{"id":"eb6c4774-06fd-4f00-a845-f91e9fe1de38","block_type":"box","text":"Other Information.","page_number":129,"box":{"x":102,"y":687,"width":128,"height":9}},{"id":"fef4070a-1e6d-4b49-aaab-b799c1bf21ef","block_type":"box","text":"The Policy shall also apply to other Confidential Information of a Fund such as per formance","page_number":129,"box":{"x":236,"y":687,"width":651,"height":11}},{"id":"20bf1298-029e-48c6-89d5-c08c359a5cf1","block_type":"box","text":"attribution analyses or security-specific information (e.g., information about Fund holdings where an issuer has been","page_number":129,"box":{"x":69,"y":702,"width":828,"height":12}},{"id":"d6ef3b5f-9664-482b-8c2f-c5d3e1616689","block_type":"box","text":"downgraded, been acquired or declared bankruptcy).","page_number":129,"box":{"x":69,"y":718,"width":372,"height":11}},{"id":"c742eb51-3fcc-4479-8595-ce45fa49f20e","block_type":"box","text":"Data on NAVs, asset levels (by total Fund and share class), accruals, yields, capital gains, dividends and fund","page_number":129,"box":{"x":102,"y":740,"width":781,"height":11}},{"id":"d1228c71-aea5-454f-879c-c0b43b616aba","block_type":"box","text":"returns (net of fees by share class) are generally available to shareholders, prospective shareholders, consultants,","page_number":129,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"83b7bf8d-3cb1-449d-8eee-274217a3ee17","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":129,"box":{"x":69,"y":771,"width":562,"height":10}},{"id":"adefdb18-3049-4bf5-b1b1-1b8bf511c3b9","block_type":"box","text":"Contact Information.","page_number":129,"box":{"x":102,"y":793,"width":144,"height":9}},{"id":"4603cb9f-19c1-4522-a335-4c5af8a2758f","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":129,"box":{"x":253,"y":793,"width":639,"height":11}},{"id":"5dcdfdf0-23f8-404b-827d-6065114c3c6c","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the Prospectus.","page_number":129,"box":{"x":69,"y":808,"width":672,"height":11}},{"id":"4423d810-c663-431b-b0d1-2b44c427fc3f","block_type":"box","text":"Compensation.","page_number":129,"box":{"x":102,"y":831,"width":105,"height":11}},{"id":"20560ae1-fbd8-4f78-9e2c-1d97c489d06e","block_type":"box","text":"Neither a Fund, a service provider nor any of their affiliated persons (as that term is defined in","page_number":129,"box":{"x":215,"y":831,"width":672,"height":11}},{"id":"c635982c-832c-48e3-998f-59bb833e151b","block_type":"box","text":"the Investment Company Act) shall receive compensation in any form in connection with the disclosure of information","page_number":129,"box":{"x":68,"y":846,"width":837,"height":11}},{"id":"a8e2bbe0-35e6-475b-88f1-82cbc72299ba","block_type":"box","text":"about such Fund’s Por tfolio Holdings or Por tfolio Characteristics.","page_number":129,"box":{"x":69,"y":861,"width":461,"height":11}},{"id":"fa935302-03e0-4d6f-b3be-9d94832b711a","block_type":"box","text":"II-89","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ac5d06fd-2418-4169-9764-ca459cb3e3dc","block_type":"box","text":"NM1026U-5982643-129/241","page_number":129,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"23d3b804-36a2-4bca-9fcd-59f5591d13a0","block_type":"box","text":"Ongoing Arrangements.","page_number":130,"box":{"x":102,"y":45,"width":164,"height":11}},{"id":"1ac0d0aa-3d98-429b-925e-628eb0076076","block_type":"box","text":"The Manager has entered into ongoing agreements to provide selective disclosure of","page_number":130,"box":{"x":272,"y":45,"width":605,"height":11}},{"id":"8006755e-6156-46fe-be0c-35077be8fcb7","block_type":"box","text":"Fund Por tfolio Holdings to the following persons or entities:","page_number":130,"box":{"x":70,"y":60,"width":420,"height":11}},{"id":"ec483aab-93ea-47d8-a573-e9acae37c56a","block_type":"box","text":"1. Fund’s Board of Directors and, if necessary, independent Directors’ counsel and Fund counsel.","page_number":130,"box":{"x":70,"y":80,"width":707,"height":11}},{"id":"8fbfacf2-2b31-4cd5-a2a1-f69c807941b1","block_type":"box","text":"2. Fund’s Transfer Agent.","page_number":130,"box":{"x":69,"y":100,"width":190,"height":11}},{"id":"c6369ab3-aef1-4da3-8d80-78a9e88f4bce","block_type":"box","text":"3. Fund’s Custodian.","page_number":130,"box":{"x":69,"y":120,"width":160,"height":9}},{"id":"6a2fd950-6ccf-4b78-9871-66e7f73e5166","block_type":"box","text":"4. Fund’s Administrator, if applicable.","page_number":130,"box":{"x":69,"y":140,"width":278,"height":11}},{"id":"d67aae2a-f47e-4be0-9e2b-d23a4abb68cd","block_type":"box","text":"5. Fund’s independent registered public accounting firm.","page_number":130,"box":{"x":69,"y":161,"width":414,"height":11}},{"id":"870f0e5b-45de-4005-b5cf-88a71ff6dacb","block_type":"box","text":"6. Fund’s accounting services provider.","page_number":130,"box":{"x":69,"y":181,"width":291,"height":11}},{"id":"7d88d667-1c91-4fcc-9622-81e142e5fb4b","block_type":"box","text":"7. Independent rating agencies —Lipper Inc., Moody’s, Fitch.","page_number":130,"box":{"x":69,"y":201,"width":446,"height":11}},{"id":"86bbc7d4-77b8-4428-9a97-2ea38980ed66","block_type":"box","text":"8. Information aggregators — S&P Global, Bloomberg, eVestments Alliance and Informa/PSN Investment Solutions.","page_number":130,"box":{"x":69,"y":221,"width":837,"height":11}},{"id":"6edde186-8dec-4ac9-8099-34544e29e3b1","block_type":"box","text":"9. Pricing Vendors — Refinitiv Limited, Refinitiv US LLC, ICE Data Services, Bloomberg, IHS Markit, JP Morgan","page_number":130,"box":{"x":69,"y":241,"width":796,"height":11}},{"id":"9e2b5cc8-7ecb-4911-9729-6a867f20bd26","block_type":"box","text":"Pricing-Direct, Valuation Research Corporation, Murray, Devine & Co., Inc. and WM Company PLC.","page_number":130,"box":{"x":102,"y":256,"width":690,"height":12}},{"id":"059c11c2-59c0-430e-a421-572d04daded6","block_type":"box","text":"10. Valuation Providers — Houlihan Lokey, Lincoln Financial, Chatham and Kroll.","page_number":130,"box":{"x":70,"y":277,"width":573,"height":11}},{"id":"ba8a9efb-d71e-49df-9e42-7807aa07ae67","block_type":"box","text":"11. Third-par ty feeder funds — Stock Index Fund, a series of Homestead Funds, Inc. and Transamerica Stock Index,","page_number":130,"box":{"x":70,"y":297,"width":827,"height":11}},{"id":"07487997-bc7b-43ef-9a30-3699943e2d5f","block_type":"box","text":"a series of Transamerica Funds and their respective boards, sponsors, administrators and other service","page_number":130,"box":{"x":102,"y":312,"width":741,"height":11}},{"id":"f5bf81ad-9aa3-4e1d-8179-bcc1a0a175bf","block_type":"box","text":"providers.","page_number":130,"box":{"x":102,"y":327,"width":68,"height":11}},{"id":"5e250147-5c29-4abe-9c07-cd57dadb0009","block_type":"box","text":"12. Affiliated feeder funds — iShares S&P 500 Index Fund, iShares U.S. Aggregate Bond Index Fund, Treasury","page_number":130,"box":{"x":70,"y":347,"width":790,"height":11}},{"id":"e5dd5482-3919-458b-8b08-8df9150abe49","block_type":"box","text":"Money Market Fund (Cayman) and their respective boards, sponsors, administrators and other service providers.","page_number":130,"box":{"x":102,"y":362,"width":803,"height":11}},{"id":"974e7347-eef6-459d-a4d7-726e0ddf4a69","block_type":"box","text":"13. Other — Investment Company Institute, Goldman Sachs Asset Management, L.P., JPMorgan Chase Bank, N.A.,","page_number":130,"box":{"x":70,"y":382,"width":821,"height":12}},{"id":"4a82a77a-6d15-483a-94fc-bd0b53636461","block_type":"box","text":"Mizuho Asset Management Co., Ltd., Nationwide Fund Advisors, State Street Bank and Trust Company,","page_number":130,"box":{"x":102,"y":398,"width":732,"height":11}},{"id":"fde6c6b7-8784-422b-815b-6dbdfb717f60","block_type":"box","text":"Donnelley Financial Solutions, Inc. and Silicon Valley Bank.","page_number":130,"box":{"x":102,"y":413,"width":416,"height":11}},{"id":"99cc8010-9252-43c5-bfee-0828997350bd","block_type":"box","text":"With respect to each such arrangement, a Fund has a legitimate business purpose for the release of","page_number":130,"box":{"x":101,"y":435,"width":720,"height":11}},{"id":"bd01ac5c-5759-4aac-ac8f-3a2c4238c226","block_type":"box","text":"information. The release of the information is subject to confidential treatment to prohibit the entity from sharing with","page_number":130,"box":{"x":70,"y":450,"width":836,"height":12}},{"id":"8d084249-75b8-4088-93ce-6f2c1559d336","block_type":"box","text":"an unauthorized source or trading upon the information provided. The Funds, BlackRock and their affiliates do not","page_number":130,"box":{"x":69,"y":465,"width":811,"height":12}},{"id":"483fb756-911c-42fc-b2e5-8edcca733f78","block_type":"box","text":"receive any compensation or other consideration in connection with such arrangements.","page_number":130,"box":{"x":69,"y":481,"width":626,"height":11}},{"id":"ee5296d9-63c8-4ade-9b80-785c7bf1abbf","block_type":"box","text":"The Funds and the Manager monitor, to the extent possible, the use of Confidential Information by the","page_number":130,"box":{"x":101,"y":503,"width":728,"height":12}},{"id":"449b634a-fe6d-4007-adb8-e49e13b78e96","block_type":"box","text":"individuals or firms to which it has been disclosed. To do so, in addition to the requirements of any applicable","page_number":130,"box":{"x":70,"y":518,"width":781,"height":11}},{"id":"e012d3b2-c730-4980-8e44-7f0df541d6b6","block_type":"box","text":"confidentiality agreement and/or the terms and conditions of the Fund’s and Manager’s Codes of Ethics — all of","page_number":130,"box":{"x":69,"y":533,"width":805,"height":12}},{"id":"a04a6117-d4dd-48e4-b258-5a052b0ff3fb","block_type":"box","text":"which require persons or entities in possession of Confidential Information to keep such information confidential and","page_number":130,"box":{"x":68,"y":549,"width":834,"height":11}},{"id":"6f0802ec-8889-4ded-aa08-da95d0011ea3","block_type":"box","text":"not to trade on such information for their own benefit — the Manager’s compliance personnel under the supervision","page_number":130,"box":{"x":69,"y":564,"width":828,"height":11}},{"id":"bd5a3e75-4025-4ca6-bd28-b663bf5232ec","block_type":"box","text":"of the Fund’s CCO, monitor the Manager’s securities trading desks to determine whether individuals or firms who","page_number":130,"box":{"x":69,"y":579,"width":807,"height":11}},{"id":"cc511ee0-d898-4140-89c9-8f8908467506","block_type":"box","text":"have received Confidential Information have made any trades on the basis of that information. In addition, the","page_number":130,"box":{"x":69,"y":594,"width":784,"height":11}},{"id":"53fe8403-f4ef-4634-a77d-03e4c543dbdb","block_type":"box","text":"Manager maintains an internal restricted list to prevent trading by the personnel of the Manager or its affiliates in","page_number":130,"box":{"x":70,"y":609,"width":808,"height":11}},{"id":"35b6c4ac-ad2b-41f6-a92a-dcc3886b27cd","block_type":"box","text":"securities — including securities held by a Fund — about which the Manager has Confidential Information. There can","page_number":130,"box":{"x":69,"y":624,"width":833,"height":11}},{"id":"5617e94c-e9ab-4730-85a4-6116099d46e5","block_type":"box","text":"be no assurance, however, that the Fund’s policies and procedures with respect to the selective disclosure of","page_number":130,"box":{"x":69,"y":639,"width":783,"height":11}},{"id":"dc05f1e2-f2c0-4d9d-8165-2de5b3e2d1d9","block_type":"box","text":"Por tfolio Holdings will prevent the misuse of such information by individuals or firms that receive such information.","page_number":130,"box":{"x":69,"y":654,"width":817,"height":12}},{"id":"6a51b1cb-1512-48f1-844b-4ec924b02ba1","block_type":"box","text":"Potential Conflicts of Interest","page_number":130,"box":{"x":69,"y":685,"width":216,"height":9}},{"id":"59d85bed-7088-4380-a1b7-ffe75d30f007","block_type":"box","text":"Cer tain activities of BlackRock, Inc., BlackRock Advisors, LLC, BlackRock Fund Advisors and the other","page_number":130,"box":{"x":102,"y":707,"width":727,"height":11}},{"id":"79128f38-4ea5-4477-9794-22c70aea7a7a","block_type":"box","text":"subsidiaries of BlackRock, Inc. (collectively referred to in this section as “BlackRock”) and their respective directors,","page_number":130,"box":{"x":69,"y":722,"width":829,"height":12}},{"id":"9b114579-eeff-4070-bc77-088caa9bc6ad","block_type":"box","text":"officers or employees, with respect to the Funds and/or other accounts managed by BlackRock, may give rise to","page_number":130,"box":{"x":69,"y":738,"width":802,"height":11}},{"id":"160a3c37-7f13-47c4-aa59-d44c2dd6b57b","block_type":"box","text":"actual or perceived conflicts of interest such as those described below","page_number":130,"box":{"x":69,"y":753,"width":505,"height":11}},{"id":"cbcc80b0-bfb6-4e26-adcf-f5d3a079b062","block_type":"box","text":".","page_number":130,"box":{"x":575,"y":760,"width":1,"height":2}},{"id":"785b6132-e952-4e12-9440-448a7415dbde","block_type":"box","text":"BlackRock is one of the world’s largest asset management firms. BlackRock, its subsidiaries and their","page_number":130,"box":{"x":102,"y":775,"width":731,"height":12}},{"id":"8a2cbcc4-65c9-4dd2-91de-6af7d69c4ec9","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":130,"box":{"x":69,"y":790,"width":799,"height":12}},{"id":"63fff944-f889-460a-ab13-f2a7c58302cc","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":130,"box":{"x":70,"y":806,"width":786,"height":11}},{"id":"b23444f8-4426-4461-9acb-b3d3a6389a36","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":130,"box":{"x":70,"y":821,"width":829,"height":11}},{"id":"814061ef-2544-484e-8be9-b87c723e2c4f","block_type":"box","text":"and have interests other than that of managing the Funds. These are considerations of which investors in a Fund","page_number":130,"box":{"x":69,"y":836,"width":804,"height":11}},{"id":"67f0ea5a-bbab-462f-8063-51c243ed8a82","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":130,"box":{"x":69,"y":851,"width":806,"height":11}},{"id":"f665d1f3-0aaa-44c9-bff4-1cd653a78944","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":130,"box":{"x":101,"y":874,"width":722,"height":11}},{"id":"cb760888-78b9-41cd-9169-d7f8b3ba88d4","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":130,"box":{"x":69,"y":889,"width":827,"height":11}},{"id":"e59c52e9-5442-484d-a389-81251df385d0","block_type":"box","text":"or sold by a Fund.","page_number":130,"box":{"x":69,"y":904,"width":125,"height":11}},{"id":"ac03b6a2-fece-4a17-8fda-9bd31f422bd1","block_type":"box","text":"II-90","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0f758207-47e2-45f4-8e00-ea39a206efa1","block_type":"box","text":"NM1026U-5982643-130/241","page_number":130,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f8da4690-c580-4c0d-9352-bb1cdd589918","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":131,"box":{"x":102,"y":45,"width":762,"height":11}},{"id":"57f9febc-d2ab-44c2-a1d4-ddb76b70c19e","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":131,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"852f5906-cf33-4906-8f8b-a3a3e6a317b0","block_type":"box","text":"identical or similar to those of a Fund and/or that engage in transactions in the same types of securities, currencies","page_number":131,"box":{"x":70,"y":75,"width":828,"height":11}},{"id":"1f5a326e-a522-484a-80f4-3d6b4e63a7dd","block_type":"box","text":"and instruments as the Fund. Such other funds or accounts may offer exposure to strategies that are identical or","page_number":131,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"3806a967-2d26-4936-bf2e-dabdddfa5dc8","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":131,"box":{"x":69,"y":105,"width":803,"height":11}},{"id":"f32233b7-e4e8-41a8-9594-7effc9d11750","block_type":"box","text":"services provided by BlackRock. BlackRock is also a major par ticipant in the global currency, equities, swap and fixed","page_number":131,"box":{"x":69,"y":120,"width":838,"height":12}},{"id":"199ff9d7-d37d-452a-9729-40a58a8a7c9e","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":131,"box":{"x":70,"y":135,"width":791,"height":11}},{"id":"029d669f-f273-4ce2-b068-aeade5723cff","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":131,"box":{"x":70,"y":151,"width":835,"height":11}},{"id":"9aff4876-c63b-4bcf-b3aa-731f7130a92c","block_type":"box","text":"a Fund invests.","page_number":131,"box":{"x":69,"y":166,"width":106,"height":9}},{"id":"25096738-77c7-4bd1-93d5-b439c623a834","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":131,"box":{"x":102,"y":188,"width":785,"height":11}},{"id":"75785688-8b28-4bf3-950a-f2c25def3b5f","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s per formance. Such transactions, par ticularly in","page_number":131,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"e9138902-65c0-4859-b395-d57f2dfaf6bb","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":131,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"e8c27764-3ff7-4678-8bc1-cd8e28d1d46a","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":131,"box":{"x":68,"y":234,"width":652,"height":11}},{"id":"1ac4632a-241f-475e-a438-1fcfc2c492f2","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":131,"box":{"x":102,"y":256,"width":787,"height":12}},{"id":"c75a7630-4f2c-4403-9c95-0ad51b958c89","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":131,"box":{"x":69,"y":272,"width":832,"height":11}},{"id":"a09902fe-0263-4f46-b69a-150e4721c04d","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":131,"box":{"x":70,"y":286,"width":816,"height":12}},{"id":"64d2df15-b950-48e2-8730-6dd4b7b77905","block_type":"box","text":"possible that a recipient of por tfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":131,"box":{"x":70,"y":302,"width":831,"height":11}},{"id":"733a0bf5-bba9-4c29-9f06-3d7cc9fc98e1","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":131,"box":{"x":68,"y":317,"width":813,"height":11}},{"id":"72d96d38-6bad-4cc3-83b0-4d461a1b4f44","block_type":"box","text":"based on the information received.","page_number":131,"box":{"x":69,"y":332,"width":247,"height":9}},{"id":"9a9311a6-c682-4c64-b918-5fd887e9f817","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":131,"box":{"x":101,"y":355,"width":777,"height":11}},{"id":"8315b72b-ae59-4deb-98da-a7d38d13309b","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":131,"box":{"x":69,"y":370,"width":838,"height":11}},{"id":"1e67d293-f47a-4d91-8b3a-e5898b48520b","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":131,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"ec2de9d3-96f6-4ab3-b23a-69c9f439373b","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":131,"box":{"x":70,"y":400,"width":817,"height":11}},{"id":"f9c8a74f-0610-4570-8841-bd51bb5e7cb0","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":131,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"f82f9714-8b75-4210-b5e3-3854e7bcd37c","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":131,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"909890f7-b587-46fb-9ab9-a327291b962a","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":131,"box":{"x":69,"y":446,"width":827,"height":11}},{"id":"2a2f1499-d2ac-4de5-82d2-4b162386a372","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":131,"box":{"x":70,"y":460,"width":785,"height":11}},{"id":"29dcf194-3598-4cf6-8323-5eda23f4d160","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":131,"box":{"x":69,"y":475,"width":767,"height":12}},{"id":"728747a7-b71d-4d0c-8e47-9385b52b78d5","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":131,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"9b45aa66-ab13-475c-9bd8-6950b9d6e9ed","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":131,"box":{"x":68,"y":506,"width":827,"height":11}},{"id":"88bc8712-e92a-41b8-91b9-e362385db3f7","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":131,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"70f73348-cc64-4d94-b99b-343e15d944c4","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":131,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"9c239e33-ddb4-469c-9ee3-f26096949f12","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":131,"box":{"x":69,"y":551,"width":781,"height":11}},{"id":"53670f53-71d3-47ee-b632-4ae304381d73","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":131,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"0fd069d3-308e-4347-b9fe-b851dbbfad25","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":131,"box":{"x":70,"y":581,"width":809,"height":12}},{"id":"a2cad6db-b425-4347-b3e5-602b447cec5f","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":131,"box":{"x":70,"y":596,"width":805,"height":12}},{"id":"658c0981-c478-4ffa-b8d5-c31ac1f4396e","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":131,"box":{"x":70,"y":612,"width":797,"height":11}},{"id":"a6e468a5-53b9-4e93-8d5d-4514019340db","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":131,"box":{"x":69,"y":627,"width":573,"height":11}},{"id":"4f93d01c-69ff-479c-baa1-09075aea3789","block_type":"box","text":"BlackRock, on behalf of other client accounts, on the one hand, and a Fund, on the other hand, may invest in or","page_number":131,"box":{"x":102,"y":649,"width":797,"height":12}},{"id":"87f61f5d-b341-48b3-8335-250d945dc4d3","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":131,"box":{"x":69,"y":664,"width":791,"height":12}},{"id":"474a9c5b-e7e1-4efe-aeb1-6c4126177403","block_type":"box","text":"advice or engage in other activities, or refrain from pursuing rights, providing advice or engaging in other activities, on","page_number":131,"box":{"x":69,"y":680,"width":835,"height":11}},{"id":"8fc9bc83-f432-4415-adbf-ee3329900925","block_type":"box","text":"behalf of other clients with respect to an issuer in which a Fund has invested, and such actions (or refraining from","page_number":131,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"d2057407-2d5e-4808-a1ca-4425a72ca828","block_type":"box","text":"action) may have a material adverse effect on the Fund. In situations in which clients of BlackRock (including the","page_number":131,"box":{"x":69,"y":710,"width":803,"height":11}},{"id":"6d60dd66-28f1-4af0-baab-d783ab34ad9e","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":131,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"c6de7a42-1d29-46bf-8307-aebdaf2697f4","block_type":"box","text":"actions or remedies that may be available to a Fund, as a result of legal and regulatory requirements or otherwise.","page_number":131,"box":{"x":69,"y":740,"width":818,"height":11}},{"id":"3c504f15-1686-4b75-a8fa-c246422d5943","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":131,"box":{"x":70,"y":755,"width":777,"height":11}},{"id":"a989b7f7-800d-4028-85ef-8f1c401578f1","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":131,"box":{"x":70,"y":770,"width":780,"height":11}},{"id":"40209074-dac5-44ca-bdaf-992c7e6c3a32","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":131,"box":{"x":69,"y":785,"width":802,"height":12}},{"id":"102d8822-55f1-43ab-b6dd-74994bd4fabb","block_type":"box","text":"situated holders of loans or securities rather than, or in connection with, taking such actions itself on behalf of the","page_number":131,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"28a3161e-2398-4283-afe9-db74a20e5178","block_type":"box","text":"Funds.","page_number":131,"box":{"x":70,"y":816,"width":44,"height":9}},{"id":"6cac163e-bffb-4600-9e7c-34d8aeba96d0","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":131,"box":{"x":102,"y":838,"width":755,"height":11}},{"id":"bf191dbd-b5a5-4af2-9e53-a30a98422dfe","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":131,"box":{"x":69,"y":853,"width":836,"height":12}},{"id":"4399bdd7-0f6b-41ae-9bd1-401390fd3c2c","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":131,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"0ba6bd60-1af5-4ed8-afd4-c396f4917c78","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":131,"box":{"x":69,"y":884,"width":679,"height":11}},{"id":"f5a3cf90-1c53-4e16-98f7-1b5bc974f222","block_type":"box","text":"II-91","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"683b43db-efef-4948-be2b-267e11973d1e","block_type":"box","text":"NM1026U-5982643-131/241","page_number":131,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"94311594-ece9-4c45-99f1-f99b64eb1ef2","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":132,"box":{"x":101,"y":45,"width":760,"height":11}},{"id":"82f1e7c6-5d9a-4812-8040-09e03263c4c6","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":132,"box":{"x":70,"y":60,"width":818,"height":11}},{"id":"e605a886-3246-4c30-8387-078e9fa0016d","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":132,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"d136ccaa-dd41-4aef-97f4-c1f58888f4e1","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":132,"box":{"x":69,"y":90,"width":825,"height":11}},{"id":"0f3908bd-5250-43cf-8480-edab941d6ead","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":132,"box":{"x":68,"y":105,"width":421,"height":11}},{"id":"76f69914-6fca-40f2-ad12-f8787b1765c9","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":132,"box":{"x":102,"y":128,"width":794,"height":11}},{"id":"8f7fe4ca-1cac-469a-b4da-07603da51fb8","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":132,"box":{"x":68,"y":143,"width":817,"height":11}},{"id":"87e1156b-0e8a-4e1a-8210-77fdee65291d","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":132,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"669081bb-0b46-4d5e-ba54-c46ca32f0a91","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":132,"box":{"x":69,"y":173,"width":826,"height":11}},{"id":"207bd90b-1cc4-4c60-9948-2bd4b4a57d7e","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":132,"box":{"x":70,"y":188,"width":780,"height":12}},{"id":"04fb02dc-3597-4fac-af76-de0dd4edda4b","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":132,"box":{"x":69,"y":203,"width":791,"height":12}},{"id":"5129fa33-8425-427d-91d8-ef9bbbd240eb","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":132,"box":{"x":70,"y":219,"width":457,"height":11}},{"id":"517f1e79-32c0-475c-abe5-4d496e63bfd1","block_type":"box","text":"BlackRock and its clients may pursue or enforce rights with respect to an issuer in which a Fund has invested,","page_number":132,"box":{"x":102,"y":241,"width":784,"height":11}},{"id":"c25c52b2-52b9-4ede-be08-b87d3e602af1","block_type":"box","text":"and those activities may have an adverse effect on the Fund. As a result, prices, availability, liquidity and terms of the","page_number":132,"box":{"x":69,"y":256,"width":840,"height":11}},{"id":"77424555-3bd6-4135-8f8c-1fc4a9493f01","block_type":"box","text":"Fund’s investments may be negatively impacted by the activities of BlackRock or its clients, and transactions for the","page_number":132,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"8ef4ddc6-5f2a-4954-93c0-74b9107dfd38","block_type":"box","text":"Fund may be impaired or effected at prices or terms that may be less favorable than would otherwise have been the","page_number":132,"box":{"x":70,"y":286,"width":828,"height":12}},{"id":"37f19bf4-e823-483c-a3c4-94cd0ba4724f","block_type":"box","text":"case.","page_number":132,"box":{"x":69,"y":304,"width":37,"height":7}},{"id":"f9160c75-466b-439d-ab2f-d627f344541a","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":132,"box":{"x":101,"y":324,"width":791,"height":12}},{"id":"f5a6ab37-fe6c-41a8-8d70-235a622845db","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":132,"box":{"x":70,"y":340,"width":824,"height":11}},{"id":"17c42b00-4a3d-4c6b-be6f-63b28c771302","block_type":"box","text":"manages or advises. It is possible that one or more accounts managed or advised by BlackRock and such other","page_number":132,"box":{"x":69,"y":355,"width":798,"height":11}},{"id":"6ccf42f5-5ab2-462c-9560-15254846f7ca","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":132,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"dcba21a7-d5fc-4ae5-8e3b-1f0759c0a0b4","block_type":"box","text":"Fund. Moreover, it is possible that a Fund will sustain losses during periods in which one or more proprietary or other","page_number":132,"box":{"x":70,"y":385,"width":835,"height":11}},{"id":"8b607f0c-8750-473e-8fa2-154a101922f0","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":132,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"007ca47a-5f32-42e7-a54c-a35119fb2808","block_type":"box","text":"From time to time, a Fund may be restricted from purchasing or selling securities, or from engaging in other","page_number":132,"box":{"x":102,"y":423,"width":766,"height":11}},{"id":"66375dfb-13ac-4769-9d60-08eebf04334c","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":132,"box":{"x":70,"y":438,"width":786,"height":11}},{"id":"8d603360-8890-479a-930e-5a2e27e132a7","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":132,"box":{"x":69,"y":453,"width":828,"height":11}},{"id":"2c8f95f5-b0a5-45ee-8442-a5ef9c3e166f","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":132,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"1286f4f1-f519-4c5c-b61e-3cb9e34e0d0a","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":132,"box":{"x":68,"y":483,"width":825,"height":11}},{"id":"c9822552-d6fe-43f8-a5f4-e83e165bcad3","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":132,"box":{"x":68,"y":498,"width":790,"height":11}},{"id":"293b8b03-6a0a-4787-a66a-8786bf93e953","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":132,"box":{"x":69,"y":513,"width":830,"height":12}},{"id":"72f1014b-c786-4533-a0d9-b6ddcc8f925f","block_type":"box","text":"and other markets in which limitations are imposed upon the amount of investment, in the aggregate or in individual","page_number":132,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"1af6a2c1-7b47-4dae-9d58-9b3881deedc0","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":132,"box":{"x":70,"y":543,"width":271,"height":12}},{"id":"b028d28b-5d89-4ef7-81fa-bec30e27bdf0","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":132,"box":{"x":102,"y":566,"width":792,"height":11}},{"id":"500e826c-0a4c-471f-8342-ce84b5722e36","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":132,"box":{"x":70,"y":581,"width":826,"height":12}},{"id":"cbd7df90-dcfb-417b-8f98-528a7c7f317c","block_type":"box","text":"transactions on behalf of a Fund in accordance with such analysis and models. In addition, BlackRock will not have","page_number":132,"box":{"x":68,"y":596,"width":821,"height":12}},{"id":"40085267-a639-4879-9ae3-b90056bbbf13","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":132,"box":{"x":69,"y":612,"width":821,"height":11}},{"id":"5886e5a2-5724-4200-86db-6908a31a0aa7","block_type":"box","text":"strategies used for other accounts managed by them, for the benefit of the management of a Fund and it is not","page_number":132,"box":{"x":69,"y":627,"width":793,"height":11}},{"id":"864de4d3-a024-4738-809a-d2e9a0093728","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":132,"box":{"x":69,"y":642,"width":762,"height":11}},{"id":"1eed1e1b-b530-43a5-9be5-e156fbb60f24","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":132,"box":{"x":70,"y":657,"width":839,"height":11}},{"id":"56440384-ba42-45cd-9b4d-5004689f7f9e","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":132,"box":{"x":70,"y":672,"width":795,"height":11}},{"id":"4e1c0b25-333a-453f-9d4e-7464047baab3","block_type":"box","text":"managing a Fund.","page_number":132,"box":{"x":69,"y":687,"width":124,"height":11}},{"id":"cbf069a0-caa3-4a45-adab-f15b704ef9bb","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":132,"box":{"x":101,"y":710,"width":751,"height":11}},{"id":"6bf20074-3824-4aa6-b4e4-b5284cf31524","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":132,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"c1e2b236-e1e4-4e84-8456-624d616b3b9a","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":132,"box":{"x":70,"y":740,"width":820,"height":11}},{"id":"d344a218-32f9-4841-b35f-fda1681dbb2b","block_type":"box","text":"value and liquidity of a Fund may be impacted by purchases and sales of the Fund by model-driven investment","page_number":132,"box":{"x":68,"y":755,"width":785,"height":11}},{"id":"cd7abb1c-0263-44ba-979f-020b7f59538d","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":132,"box":{"x":70,"y":770,"width":481,"height":11}},{"id":"d1b8c6ee-00e0-4175-9398-4c7a379b33be","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":132,"box":{"x":102,"y":793,"width":754,"height":11}},{"id":"90c855c9-b4af-4fa8-9230-691e5312700d","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":132,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"e39bfc52-695a-4893-b395-fd503b3833c8","block_type":"box","text":"have obligations to such other business units or entities or their clients and such obligations to other business units","page_number":132,"box":{"x":69,"y":823,"width":831,"height":12}},{"id":"e46fad10-12ed-4c1d-8e0c-a9fd05c7f1ee","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":132,"box":{"x":69,"y":838,"width":680,"height":11}},{"id":"1d7a189e-4da9-4668-8901-fe2156567e7d","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":132,"box":{"x":102,"y":861,"width":791,"height":11}},{"id":"6c120c21-b334-4d49-81b7-84b4709c108e","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":132,"box":{"x":70,"y":876,"width":820,"height":11}},{"id":"bbc75e85-dc4f-455e-a31d-090644b16e89","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":132,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"beafb1ab-5348-4719-a94b-b5f710773a80","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":132,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"ce83da45-e2d9-4708-bbbf-70e3f6a01918","block_type":"box","text":"II-92","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ae97f20d-e2df-45e4-9afd-fc5fc76d3a7b","block_type":"box","text":"NM1026U-5982643-132/241","page_number":132,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"a0ddff29-aac9-4322-8873-a9c34377c8d2","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":133,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"4a3510bc-dc41-456a-9c46-42c7c636e7a8","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":133,"box":{"x":70,"y":60,"width":344,"height":11}},{"id":"411e7e70-bed0-41cb-b95b-c912fe3db10a","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":133,"box":{"x":102,"y":82,"width":741,"height":12}},{"id":"2998d5f6-ec08-4d75-a1a6-c542a777ec78","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":133,"box":{"x":70,"y":98,"width":824,"height":11}},{"id":"c9735e5d-ca09-43ae-ab8a-54432c1eaade","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":133,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"9fbc4d77-4903-4a06-9f84-1282299e802a","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":133,"box":{"x":69,"y":128,"width":777,"height":11}},{"id":"6bed0264-8a16-4564-b0c9-5c1c61396f5e","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":133,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"4213c448-4982-4a1d-9b4b-7295fb537e9b","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":133,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"85727a43-fe6e-4a3b-afd5-35ce75c6c8d6","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":133,"box":{"x":70,"y":173,"width":798,"height":11}},{"id":"b0ee96d6-1dc0-4282-b587-a3711301f111","block_type":"box","text":"under management for BlackRock.","page_number":133,"box":{"x":69,"y":188,"width":243,"height":12}},{"id":"194dc139-870c-424d-8003-00bf442d844a","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":133,"box":{"x":101,"y":211,"width":773,"height":11}},{"id":"a1c7d690-6c9f-47b5-aeda-6fc670d8ff72","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":133,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"331ba731-a987-4287-9de2-c95673a0c5f8","block_type":"box","text":"clients have interests adverse to those of the Fund. At times, these activities may cause business units or entities","page_number":133,"box":{"x":69,"y":241,"width":817,"height":11}},{"id":"20516cdb-4a5e-4ff2-beda-42e22760f631","block_type":"box","text":"within BlackRock to give advice to clients that may cause these clients to take actions adverse to the interests of the","page_number":133,"box":{"x":68,"y":256,"width":837,"height":12}},{"id":"946b4004-36cf-4609-bd80-29667f3ba56e","block_type":"box","text":"Fund. To the extent such transactions are permitted, a Fund will deal with BlackRock on an arms-length basis.","page_number":133,"box":{"x":70,"y":272,"width":781,"height":11}},{"id":"9f0e93b4-87ef-4053-b8a2-4034aeea9b26","block_type":"box","text":"To the extent authorized by applicable law, BlackRock may act as broker, dealer, agent, lender or adviser or in","page_number":133,"box":{"x":101,"y":294,"width":779,"height":11}},{"id":"1ddbe370-aded-4e2e-878c-67944ce8fcfa","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":133,"box":{"x":69,"y":309,"width":795,"height":11}},{"id":"f019f76c-c242-4e45-9e94-49999f9d1771","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":133,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"30a7ba1d-4e9b-4ddd-9114-6274e5e38bd8","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":133,"box":{"x":68,"y":339,"width":802,"height":12}},{"id":"1ca1e4d0-4d5c-4e20-bbc8-7e5f80c98e5f","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":133,"box":{"x":69,"y":355,"width":792,"height":11}},{"id":"417db371-86cf-4962-99b0-df8edbd234d2","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":133,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"b33e88c8-da9f-4214-b42f-715808f93171","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":133,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"eea68708-a996-40f2-b83d-9747af89518e","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":133,"box":{"x":68,"y":400,"width":726,"height":11}},{"id":"a7ff3474-3827-476d-a318-c40f815eb1da","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":133,"box":{"x":102,"y":423,"width":796,"height":11}},{"id":"834e1b91-6068-46e6-9d66-c0f866bbebff","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":133,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"7ae59329-04c8-4ab6-8711-cb58093e8e69","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":133,"box":{"x":69,"y":453,"width":823,"height":11}},{"id":"9a9e1106-9a9c-4aaa-95e5-f8211d780d36","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":133,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"9d80ac13-6346-4eb8-9cb0-3bfea04ac67a","block_type":"box","text":"any such fees or other amounts.","page_number":133,"box":{"x":69,"y":483,"width":230,"height":11}},{"id":"c8d11abc-cf91-437e-b225-2684e2abcdbb","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":133,"box":{"x":101,"y":506,"width":805,"height":11}},{"id":"a0417d64-4443-4c0e-9d6d-7c0d510a8b42","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":133,"box":{"x":70,"y":521,"width":768,"height":11}},{"id":"fa119bfc-6b60-4f92-8618-a4b89ff7240b","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":133,"box":{"x":101,"y":544,"width":766,"height":10}},{"id":"73046b27-c4b8-40f7-b31b-f7ad5a07459f","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":133,"box":{"x":69,"y":559,"width":793,"height":11}},{"id":"cfedf9ce-c2fb-4d5d-b341-7be1923442ea","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":133,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"6442d59a-ec19-4222-9d80-0104a6f6caca","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":133,"box":{"x":70,"y":589,"width":374,"height":11}},{"id":"b47f7dc3-f840-4d4a-9208-cb55ac039af2","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":133,"box":{"x":102,"y":612,"width":768,"height":11}},{"id":"5dd9dee1-e377-469b-be63-2d1a24b2694a","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":133,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"95442b15-5345-43ad-bf98-9994066bb23d","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":133,"box":{"x":69,"y":642,"width":785,"height":11}},{"id":"96e70784-6461-4266-9dff-fb42cf192ff9","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":133,"box":{"x":69,"y":657,"width":829,"height":11}},{"id":"2207fa3b-b59d-4faa-8df2-1d9859125d33","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":133,"box":{"x":69,"y":672,"width":809,"height":11}},{"id":"0bfdc8a6-1d30-4012-987e-e3e72c11fc5e","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":133,"box":{"x":69,"y":687,"width":833,"height":11}},{"id":"c75da1ac-b173-4d9b-b946-05fd64ebc28f","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":133,"box":{"x":69,"y":702,"width":829,"height":12}},{"id":"bb808858-ebdd-4253-b47a-75d5d53d13fe","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":133,"box":{"x":69,"y":718,"width":783,"height":11}},{"id":"c2ed65b4-fd40-4aa4-866d-f26f898ca6b8","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":133,"box":{"x":70,"y":732,"width":814,"height":12}},{"id":"5dcb2de2-11df-4675-9a8b-d3ad69bb0a65","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":133,"box":{"x":69,"y":748,"width":660,"height":11}},{"id":"a99ffe6b-9b91-4c73-aa2a-f1e0f1d80e50","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":133,"box":{"x":101,"y":770,"width":767,"height":12}},{"id":"844e116e-7639-48ae-935e-94e72ed18144","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":133,"box":{"x":68,"y":785,"width":820,"height":12}},{"id":"e48a1444-a8ec-415a-8586-c2987e85209b","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":133,"box":{"x":70,"y":801,"width":806,"height":11}},{"id":"f76004d7-61be-480c-8947-302bb0615218","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":133,"box":{"x":70,"y":816,"width":816,"height":11}},{"id":"1b0a9ea6-b27f-4e0c-90c0-cc5dbb0d36ae","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":133,"box":{"x":69,"y":831,"width":838,"height":11}},{"id":"1f19e6c3-daa8-469e-81a0-1baed49b4b27","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":133,"box":{"x":70,"y":846,"width":727,"height":11}},{"id":"94f00462-4752-46dd-a962-f290efd8a0a0","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":133,"box":{"x":69,"y":861,"width":815,"height":11}},{"id":"a2e81786-4d48-4851-8d2a-bbfbed4a7956","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":133,"box":{"x":69,"y":876,"width":786,"height":11}},{"id":"065e33ef-6fc6-413f-abb5-125bc8497796","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":133,"box":{"x":70,"y":891,"width":796,"height":12}},{"id":"a105b0bb-1db1-4c03-ba5c-89f7bd6d0fd2","block_type":"box","text":"II-93","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"855c68f1-7027-43ab-a0a8-c6c7cd18c68a","block_type":"box","text":"NM1026U-5982643-133/241","page_number":133,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f96412a8-598c-4b6b-9307-793edd347fda","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":134,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"45906cd0-a783-4193-b902-d6ff836e34ac","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":134,"box":{"x":69,"y":60,"width":356,"height":11}},{"id":"e3a312db-b73a-4dc3-b2fe-7ceb8790e344","block_type":"box","text":"BlackRock may decline to make a securities loan on behalf of a Fund, discontinue lending on behalf of a Fund or","page_number":134,"box":{"x":102,"y":82,"width":801,"height":12}},{"id":"54f4882c-6315-47b5-990b-d2e7968d6011","block_type":"box","text":"terminate a securities loan on behalf of a Fund for any reason, including but not limited to regulatory requirements","page_number":134,"box":{"x":68,"y":98,"width":817,"height":11}},{"id":"a7ecd28b-4118-4f43-b391-7465cb977dc4","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":134,"box":{"x":69,"y":113,"width":784,"height":11}},{"id":"60ecd5db-a3c4-4ab4-a8fc-32ca033d82b5","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":134,"box":{"x":69,"y":128,"width":789,"height":11}},{"id":"0db7fa58-2dbd-4bb9-af16-5705ab237f50","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":134,"box":{"x":70,"y":143,"width":783,"height":11}},{"id":"38f5ec5c-0bd5-448a-bfc6-3e583a5fc94b","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":134,"box":{"x":70,"y":158,"width":790,"height":11}},{"id":"8fc2fa85-1c68-4759-a6bf-78ad72b8681c","block_type":"box","text":"regulation.","page_number":134,"box":{"x":69,"y":173,"width":73,"height":11}},{"id":"a0eaa927-5564-480e-9654-6471ee4474ad","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":134,"box":{"x":102,"y":196,"width":777,"height":11}},{"id":"ae13d0fd-2b66-44bd-ace9-a49e18023a0c","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":134,"box":{"x":69,"y":211,"width":830,"height":11}},{"id":"0921e661-7a28-4893-ab82-cee2f6c21409","block_type":"box","text":"various program limits (i.e. indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":134,"box":{"x":68,"y":226,"width":818,"height":11}},{"id":"cf6b8b0f-83b2-426c-9253-87c8b82f0bef","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":134,"box":{"x":69,"y":241,"width":827,"height":11}},{"id":"06a0ed57-50bb-4b18-a24e-c44140490ca9","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":134,"box":{"x":69,"y":256,"width":836,"height":12}},{"id":"511eb895-0085-4dee-9458-eb798b1d0f34","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":134,"box":{"x":70,"y":271,"width":780,"height":12}},{"id":"049148b2-08b9-4787-9e3a-bddc5b8fe701","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":134,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"9f082680-8015-4e32-adab-0868671de7e3","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":134,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"be405938-24fa-4f1e-8ce5-14b6dd77fb17","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":134,"box":{"x":69,"y":317,"width":444,"height":11}},{"id":"1be47887-8caa-4c1e-8b27-818e553a97bd","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":134,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"e97254eb-9dd1-43ba-af19-e0935c3ab57f","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":134,"box":{"x":70,"y":355,"width":840,"height":11}},{"id":"8f9be9c5-efb4-4e6d-a978-9558300b31df","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":134,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"c69299a7-7c91-46b6-b5ae-5da9eba09228","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":134,"box":{"x":69,"y":385,"width":788,"height":11}},{"id":"72c295b1-f963-4443-bb40-d0a0c9fcd8dd","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":134,"box":{"x":70,"y":400,"width":426,"height":11}},{"id":"5176cf8e-834b-4ca1-8cf5-e93e7e24ee44","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":134,"box":{"x":102,"y":423,"width":763,"height":11}},{"id":"af2ae3f7-aabf-4037-8348-387a66ab6752","block_type":"box","text":"entire volume of securities purchased or sold. When this occurs, the various prices may be averaged, and the Funds","page_number":134,"box":{"x":69,"y":438,"width":828,"height":11}},{"id":"f279b8e1-cb02-4ccd-b38f-989c54487a36","block_type":"box","text":"will be charged or credited with the average price. Thus, the effect of the aggregation may operate on some","page_number":134,"box":{"x":68,"y":453,"width":767,"height":11}},{"id":"03f44eb0-1b79-4873-9785-ce11222901d6","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":134,"box":{"x":69,"y":468,"width":828,"height":11}},{"id":"f258ef74-87db-4a41-b95d-7ab56f549e22","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":134,"box":{"x":68,"y":483,"width":672,"height":11}},{"id":"e363697f-adee-41ba-98aa-849343d53c8f","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":134,"box":{"x":101,"y":506,"width":767,"height":11}},{"id":"79f9bc89-8c78-43c8-a563-54c935fc6270","block_type":"box","text":"Securities,” BlackRock, unless prohibited by applicable law, may cause a Fund or account to pay a broker or dealer a","page_number":134,"box":{"x":69,"y":521,"width":832,"height":11}},{"id":"c3b2a2a6-5052-4633-89de-783bee3c2804","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":134,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"3fab0869-0d0f-4164-ac9c-06352c8b1e95","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":134,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"28f41f05-c910-493c-aea1-ac228dc9fb4f","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":134,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"394d9e43-a428-4e31-8c9c-77ca819a7014","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":134,"box":{"x":69,"y":581,"width":812,"height":11}},{"id":"0f09f61c-798c-4b4e-8517-68177b6de1f3","block_type":"box","text":"than through client commissions.","page_number":134,"box":{"x":68,"y":597,"width":237,"height":11}},{"id":"898f6826-2be0-46d1-a976-21c4fb67320d","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":134,"box":{"x":102,"y":619,"width":770,"height":11}},{"id":"6e28c42f-de85-4bb0-82e8-974d27adee80","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":134,"box":{"x":69,"y":634,"width":797,"height":12}},{"id":"42cd80b4-1038-4b88-9233-5be23f4c903b","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":134,"box":{"x":69,"y":650,"width":830,"height":11}},{"id":"45c9fb23-afd8-42f5-9df7-488f2f77d3d1","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":134,"box":{"x":70,"y":664,"width":780,"height":12}},{"id":"83a3a686-40e9-45d3-8ecc-116dc9a99ae0","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":134,"box":{"x":69,"y":680,"width":795,"height":11}},{"id":"5765dbd9-71fb-4960-a0f5-ee1d0fb3c507","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":134,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"40471ab9-cfb7-4d8c-bc63-7d0b462a8755","block_type":"box","text":"research-oriented software and other services and products.","page_number":134,"box":{"x":69,"y":710,"width":430,"height":11}},{"id":"e59209b0-4220-4cfb-8fa9-0f37ae3edc29","block_type":"box","text":"Research or other services obtained in this manner may be used in servicing any or all of the Funds and other","page_number":134,"box":{"x":102,"y":732,"width":785,"height":12}},{"id":"395e87cc-ad73-48d9-8f11-66f6439ef39c","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":134,"box":{"x":70,"y":748,"width":768,"height":11}},{"id":"9779485e-6435-4442-bbdd-b4651ee3e67d","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":134,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"75575089-30e7-4426-80f4-34cdd9d8b00f","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":134,"box":{"x":69,"y":778,"width":818,"height":11}},{"id":"d7549565-e36e-4c21-b6c3-b054754a8a42","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":134,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"662ea0f5-1f23-4d84-83e7-e5b9225993fc","block_type":"box","text":"that are paid for through one client’s commissions may not be used in managing that client’s account. In addition,","page_number":134,"box":{"x":68,"y":808,"width":815,"height":11}},{"id":"46c95e1c-4880-4bd0-8c6a-c102e13bdb46","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":134,"box":{"x":69,"y":823,"width":824,"height":12}},{"id":"a022ad08-b6df-4f30-92bc-ddae9bf24ddb","block_type":"box","text":"or price discounts in connection with products and services that may be provided to the Funds and to such other","page_number":134,"box":{"x":69,"y":839,"width":804,"height":10}},{"id":"fd5bfe53-2b3d-47fc-82ba-21b041ecaddc","block_type":"box","text":"BlackRock client accounts. To the extent that BlackRock uses soft dollars, it will not have to pay for those products","page_number":134,"box":{"x":70,"y":853,"width":819,"height":12}},{"id":"c401bd6e-fda3-4845-bc27-eca0a8dc3d30","block_type":"box","text":"and services itself.","page_number":134,"box":{"x":69,"y":869,"width":134,"height":9}},{"id":"0b1609f5-2806-4684-95c3-7de76f9d805d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":134,"box":{"x":102,"y":891,"width":793,"height":12}},{"id":"7c566e8b-83ee-4729-84a3-cbc87d71138b","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":134,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"ae232644-b39a-4aab-be94-bbc2e95777ab","block_type":"box","text":"II-94","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5998efa2-9170-4772-bff2-0f71ec889c65","block_type":"box","text":"NM1026U-5982643-134/241","page_number":134,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"50e77e2d-5a5d-47f9-99f6-daf1cc56a3c6","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":135,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"39898be6-054f-4cbe-958e-145de2f36910","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":135,"box":{"x":68,"y":60,"width":836,"height":11}},{"id":"0932bc4d-e170-4a2b-9d05-722778a08881","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":135,"box":{"x":69,"y":75,"width":760,"height":11}},{"id":"4398ede3-7ff9-4af5-a560-7b1d7bfd5246","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":135,"box":{"x":68,"y":90,"width":803,"height":11}},{"id":"346827e3-8c6f-4c9c-b039-8dd1644acdbe","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":135,"box":{"x":69,"y":105,"width":807,"height":11}},{"id":"0dea9d35-356e-472f-9d54-d5f28d51b0ac","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":135,"box":{"x":69,"y":120,"width":760,"height":12}},{"id":"10c7328a-f623-41fb-ac20-9b415340df93","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":135,"box":{"x":102,"y":143,"width":799,"height":11}},{"id":"aea82d82-48c5-42e4-8212-f8c8bae9795c","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":135,"box":{"x":70,"y":158,"width":767,"height":11}},{"id":"14898b0b-78a6-47b9-ba7a-ed24b801d6e1","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":135,"box":{"x":69,"y":173,"width":794,"height":11}},{"id":"af558e65-58ef-4580-bd9f-d4b769935c04","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":135,"box":{"x":69,"y":188,"width":825,"height":11}},{"id":"56b73a5c-25a0-4106-b966-20209bcd2e90","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":135,"box":{"x":68,"y":204,"width":821,"height":11}},{"id":"b8d9f022-d3a4-4d42-bac7-ce9613767ed8","block_type":"box","text":"the cost of the securities purchased. Access fees may be paid by BlackRock even though incurred in connection with","page_number":135,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"735f5ac2-a2f9-4e03-be5c-214ac2779988","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":135,"box":{"x":69,"y":234,"width":812,"height":11}},{"id":"8ff11c9c-3b62-4ce3-ba62-afd8ff1fed5e","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":135,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"78a28996-2d84-494e-abec-2e6ba85361c3","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":135,"box":{"x":68,"y":264,"width":519,"height":11}},{"id":"61082d97-0c84-4a79-a01a-8adb1afc4571","block_type":"box","text":"BlackRock owns a minority interest in, and is a member of, Members Exchange (“MEMX”), a newly created U.S.","page_number":135,"box":{"x":102,"y":286,"width":793,"height":12}},{"id":"4fdc0757-2d56-43cb-93b8-b8f69a4640ed","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":135,"box":{"x":69,"y":302,"width":782,"height":11}},{"id":"646fae3b-d3a2-45cf-8328-4f2335542cb5","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":135,"box":{"x":69,"y":317,"width":710,"height":11}},{"id":"12ddf962-3a45-4040-8566-214c7ef3467d","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":135,"box":{"x":102,"y":339,"width":792,"height":12}},{"id":"61530baf-3787-4d19-b12d-64633a3d5d51","block_type":"box","text":"voting decisions that it makes on behalf of advisory clients, including the Funds, and to help ensure that such","page_number":135,"box":{"x":68,"y":355,"width":784,"height":11}},{"id":"b2eea38a-706c-4a6d-b8c9-48c62a0b5883","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless,","page_number":135,"box":{"x":69,"y":370,"width":719,"height":11}},{"id":"a6dfd20d-11dd-419c-819c-613ac90dffee","block_type":"box","text":"notwithstanding such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have","page_number":135,"box":{"x":102,"y":392,"width":798,"height":12}},{"id":"0411ff18-a839-499e-aab3-68e18609e299","block_type":"box","text":"the effect of favoring the interests of other clients or businesses of other divisions or units of BlackRock, provided","page_number":135,"box":{"x":68,"y":407,"width":815,"height":12}},{"id":"c01e1d74-8c42-4c09-9ee9-bab3ffdb3a3b","block_type":"box","text":"that BlackRock believes such voting decisions to be in accordance with its fiduciary obligations. For a more detailed","page_number":135,"box":{"x":68,"y":423,"width":826,"height":11}},{"id":"72dc14ad-b3ff-4e45-b981-a0cd14df39f4","block_type":"box","text":"discussion of these policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":135,"box":{"x":69,"y":438,"width":635,"height":11}},{"id":"08ff5fe9-266c-4a4b-8774-48a24f4eb0c8","block_type":"box","text":"It is also possible that, from time to time, BlackRock and/or its advisory clients (including other funds and","page_number":135,"box":{"x":102,"y":460,"width":757,"height":12}},{"id":"c0355f1f-a589-4579-acb9-4386a5047705","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":135,"box":{"x":69,"y":475,"width":825,"height":12}},{"id":"33d99e28-eff7-4387-b295-15476eb35782","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":135,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"3a69d017-1a96-4d8c-a870-17039e5dc858","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":135,"box":{"x":69,"y":506,"width":774,"height":11}},{"id":"1fa8a5cd-1128-4c10-a405-bc6bab8514e7","block_type":"box","text":"applicable law, to redeem at any time some or all of the shares of a Fund acquired for its own accounts. A large","page_number":135,"box":{"x":69,"y":521,"width":796,"height":11}},{"id":"a2989a21-d8fa-4429-8f01-a0f4338d8376","block_type":"box","text":"redemption of shares of a Fund by BlackRock could significantly reduce the asset size of the Fund, which might have","page_number":135,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"0b54576c-d8cb-482e-bbed-7217230e885a","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":135,"box":{"x":69,"y":551,"width":831,"height":11}},{"id":"f42aac7d-659d-4a8e-aee6-837a1e949ec8","block_type":"box","text":"consider the effect of redemptions on a Fund and other shareholders in deciding whether to redeem its shares but is","page_number":135,"box":{"x":69,"y":566,"width":834,"height":11}},{"id":"062e4414-6d25-403f-a332-7efaf31507c2","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":135,"box":{"x":69,"y":582,"width":355,"height":11}},{"id":"78570386-fa13-4fe4-94d9-47255c3fec86","block_type":"box","text":"It is possible that a Fund may invest in securities of, or engage in transactions with, companies in which","page_number":135,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"1876b3af-faf1-401d-a909-f735d9f99209","block_type":"box","text":"BlackRock has significant debt or equity investments or other interests. A Fund may also invest in issuances (such as","page_number":135,"box":{"x":70,"y":619,"width":838,"height":11}},{"id":"49052e41-9459-45c7-ac79-f93d7c422607","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":135,"box":{"x":69,"y":634,"width":788,"height":12}},{"id":"45a79536-ca76-40a7-8d0a-6390a68f84e8","block_type":"box","text":"relating to the proceeds from the sale of such issuances. In making investment decisions for a Fund, BlackRock is","page_number":135,"box":{"x":69,"y":649,"width":816,"height":12}},{"id":"256dea96-b6bc-4e38-baec-c2885c370355","block_type":"box","text":"not permitted to obtain or use material non-public information acquired by any unit of BlackRock, in the course of","page_number":135,"box":{"x":69,"y":664,"width":806,"height":12}},{"id":"d55b7f8c-26f1-4e2b-89e5-b10f9de681db","block_type":"box","text":"these activities. In addition, from time to time, the activities of BlackRock may limit a Fund’s flexibility in purchases","page_number":135,"box":{"x":68,"y":680,"width":822,"height":11}},{"id":"4f4d406f-2e0a-4305-bd0d-b26328d2a792","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":135,"box":{"x":69,"y":695,"width":766,"height":11}},{"id":"5943474d-c56f-4d4a-a865-f281dc70dd30","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":135,"box":{"x":70,"y":710,"width":533,"height":9}},{"id":"49390f3d-8be5-4f35-b2e9-ad654106a455","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":135,"box":{"x":102,"y":732,"width":789,"height":12}},{"id":"fc9a101d-a7fa-43d3-8956-a21f6a979844","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":135,"box":{"x":70,"y":748,"width":805,"height":11}},{"id":"e9eba212-529a-4ff5-b46c-65f86c976afe","block_type":"box","text":"sales of the Funds or other products may be greater than remuneration and profitability relating to services to and","page_number":135,"box":{"x":69,"y":763,"width":813,"height":11}},{"id":"4d0a8094-7f55-475d-8638-3ebe1d162764","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":135,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"0d0ad085-bce3-4b35-ba80-119e66116094","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":135,"box":{"x":69,"y":793,"width":788,"height":11}},{"id":"eb720839-9899-476b-ab97-1abad9509f80","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":135,"box":{"x":70,"y":808,"width":745,"height":11}},{"id":"0f2fae74-e6dc-4395-a238-e90703b3ae17","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":135,"box":{"x":69,"y":823,"width":822,"height":12}},{"id":"0480ed63-90eb-4877-9577-81a48177a5ad","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":135,"box":{"x":69,"y":838,"width":801,"height":12}},{"id":"1c8a7f57-30cf-4b95-9597-d60a37d391da","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":135,"box":{"x":70,"y":853,"width":711,"height":12}},{"id":"b8c65bc7-4d0f-45c0-b597-fbd7628d8a98","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":135,"box":{"x":102,"y":876,"width":741,"height":11}},{"id":"53b8619f-5b3a-414e-a93b-b4635a8799fa","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":135,"box":{"x":70,"y":891,"width":823,"height":11}},{"id":"39d47911-bf67-4679-834b-64988a17688c","block_type":"box","text":"the same securities or investments assigned by a Fund’s pricing vendors, especially if such valuations are based on","page_number":135,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"b7354dfd-8eba-4a85-a8e4-36e0f35f7af6","block_type":"box","text":"II-95","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"737a01cf-d78d-4b85-8b08-6eb05355385d","block_type":"box","text":"NM1026U-5982643-135/241","page_number":135,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"34beeba3-08b8-4111-bbd5-217be72a3bff","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":136,"box":{"x":69,"y":45,"width":825,"height":11}},{"id":"61ca5790-7334-4fbe-972d-5474c41095a0","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":136,"box":{"x":69,"y":60,"width":830,"height":11}},{"id":"9dde6a7f-9f3f-4a74-ada3-c476190e81e8","block_type":"box","text":"may be instances where the Fund’s pricing vendors or fund accountants assign a different valuation to a security or","page_number":136,"box":{"x":69,"y":75,"width":824,"height":11}},{"id":"507c6ee0-0858-4499-a1dd-d67826da1437","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":136,"box":{"x":69,"y":90,"width":792,"height":11}},{"id":"b49f897c-872a-4d01-b0ce-b5f15ea96fb7","block_type":"box","text":"As disclosed in more detail in “Pricing of Shares—Determination of Net Asset Value” in this SAI, when market","page_number":136,"box":{"x":101,"y":113,"width":784,"height":11}},{"id":"fdcff46f-4c9d-4afc-bd81-ec41afcd59fd","block_type":"box","text":"quotations are not readily available or are believed by BlackRock to be unreliable, a Fund’s investments are valued at","page_number":136,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"17fab44a-1104-4de7-ba2c-f96a7f8fe24c","block_type":"box","text":"fair value by BlackRock. BlackRock has been designated as the Fund’s valuation designee pursuant to Rule 2a-5","page_number":136,"box":{"x":68,"y":143,"width":803,"height":11}},{"id":"4731283c-05b3-40e0-9862-bb6326651e1d","block_type":"box","text":"under the Investment Company Act and acts through BlackRock’s Rule 2a-5 Committee (the “2a-5 Committee”), with","page_number":136,"box":{"x":69,"y":158,"width":831,"height":11}},{"id":"4278e738-63fa-45e1-98e4-43626e76edb6","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":136,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"fad09b1f-70c2-459e-871e-565b4417f112","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":136,"box":{"x":69,"y":188,"width":802,"height":12}},{"id":"7183d96a-4d01-4c8b-ad4e-b7818fda6700","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":136,"box":{"x":70,"y":203,"width":829,"height":12}},{"id":"7d97d382-3dac-4da3-893c-81eed4ced1f6","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":136,"box":{"x":68,"y":218,"width":832,"height":12}},{"id":"3b9960b6-fdd6-4ee0-bf71-ce6803b3f320","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":136,"box":{"x":69,"y":234,"width":837,"height":11}},{"id":"5ecb6b8e-5548-4a7c-b4f0-f781069d0bc7","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":136,"box":{"x":68,"y":249,"width":829,"height":11}},{"id":"37d36af8-a523-4b09-9089-cf7746c014ee","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":136,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"b33586c3-112d-4d85-9bed-b754e6dba8e1","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":136,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"758bafef-370d-4e96-98a3-b8706d461b29","block_type":"box","text":"liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the","page_number":136,"box":{"x":70,"y":294,"width":800,"height":11}},{"id":"2d2e47a2-4e0b-4ca0-90df-d029aaad970d","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":136,"box":{"x":70,"y":309,"width":779,"height":11}},{"id":"4e7741eb-4564-4b82-8b44-3bdea2177faa","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":136,"box":{"x":69,"y":324,"width":834,"height":12}},{"id":"8488a68f-7294-40e6-9f88-abd5e8d39d72","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":136,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"b557485b-08e9-491c-8d85-62a93cd1da1b","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":136,"box":{"x":69,"y":355,"width":765,"height":11}},{"id":"bc51c341-3b61-4e14-8fbc-c1acc1c7ea6e","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":136,"box":{"x":101,"y":377,"width":784,"height":11}},{"id":"8cd84dc5-ede5-4f57-ac1a-515b86201b2f","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":136,"box":{"x":69,"y":392,"width":823,"height":12}},{"id":"90a92821-42a5-40f6-8e7b-ac722b6f6a33","block_type":"box","text":"such investments, a Fund, to the extent permitted by the Investment Company Act, may pay its share of expenses of","page_number":136,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"2dc1a07a-ef30-4b5f-b6a8-ca769772928a","block_type":"box","text":"a money market fund or other similarly-managed private fund in which it invests, which may result in a Fund bearing","page_number":136,"box":{"x":69,"y":423,"width":822,"height":11}},{"id":"a214c916-01fc-45ac-b826-a55b1db9e94e","block_type":"box","text":"some additional expenses.","page_number":136,"box":{"x":69,"y":438,"width":190,"height":11}},{"id":"012169b0-35a3-4f0c-b07c-b4c22e1c2dba","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":136,"box":{"x":102,"y":460,"width":787,"height":12}},{"id":"ffa0622b-0710-4802-a66a-e0faacf1e656","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":136,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"7e456387-019e-498c-8f05-5c0c9bda61fb","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":136,"box":{"x":69,"y":491,"width":764,"height":11}},{"id":"8b7f216b-82e6-4416-82f4-f2214f79ad6b","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":136,"box":{"x":69,"y":506,"width":809,"height":11}},{"id":"5fdc0840-c4e2-4147-ad1c-24649d63a88c","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":136,"box":{"x":70,"y":521,"width":802,"height":11}},{"id":"dd50a9c6-1f29-4512-a713-f2720fb52f6a","block_type":"box","text":"BlackRock each have adopted a Code of Ethics in compliance with Section 17(j) of the Investment Company Act that","page_number":136,"box":{"x":70,"y":536,"width":828,"height":11}},{"id":"1fa3ed3e-eaec-448a-9f2e-4837225fadb6","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":136,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"91536ded-facf-4661-ac9e-fc087098b9d0","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":136,"box":{"x":70,"y":566,"width":816,"height":11}},{"id":"1f052fa2-dfb4-4b8b-bb7e-2253cb6bec1c","block_type":"box","text":"EDGAR Database on the Commission’s Internet site at http://www.sec.gov, and copies may be obtained, after paying","page_number":136,"box":{"x":70,"y":581,"width":836,"height":12}},{"id":"6b59a1af-0616-48d6-9b0f-6795ef2374c2","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":136,"box":{"x":69,"y":596,"width":352,"height":12}},{"id":"d89166ca-a1d5-4777-94dc-537b527bba20","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":136,"box":{"x":102,"y":619,"width":768,"height":11}},{"id":"7c4374ad-72bd-408a-a1e6-286ad9e0c0cb","block_type":"box","text":"except that the Fund may in accordance with rules or guidance adopted under the Investment Company Act engage in","page_number":136,"box":{"x":69,"y":634,"width":836,"height":12}},{"id":"b8d8239d-ea2c-45ee-807c-20e591e7ca73","block_type":"box","text":"transactions with another Fund or accounts that are affiliated with the Fund as a result of common officers, directors,","page_number":136,"box":{"x":68,"y":649,"width":839,"height":11}},{"id":"591fe632-f161-482f-ba75-56be2b0efbe0","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":136,"box":{"x":69,"y":665,"width":824,"height":11}},{"id":"1da560bd-5e1a-47ba-95dd-b5fc5a59faeb","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":136,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"20e7d7f0-3595-4d76-9a7c-06d52571d4a2","block_type":"box","text":"for the Fund to purchase and another client of BlackRock to sell, or the Fund to sell and another client of BlackRock","page_number":136,"box":{"x":68,"y":695,"width":826,"height":11}},{"id":"658ffaab-4178-48b2-9583-55c442499ac9","block_type":"box","text":"to purchase, the same security or instrument on the same day. From time to time, the activities of a Fund may be","page_number":136,"box":{"x":68,"y":710,"width":810,"height":11}},{"id":"37a1af02-50e7-42cd-b559-f91349fa3bef","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":136,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"c83c3e18-5890-4dc8-8a38-fa76a3b5264d","block_type":"box","text":"to comply with, limit the applicability of, or that otherwise relate to such requirements. A client not advised by","page_number":136,"box":{"x":68,"y":740,"width":782,"height":11}},{"id":"591e6539-753c-4ed9-9df8-fc1d934834b9","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":136,"box":{"x":70,"y":755,"width":807,"height":11}},{"id":"a98e76fd-5e20-4e4c-b034-d670b850cec2","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":136,"box":{"x":70,"y":770,"width":804,"height":12}},{"id":"c3e9bd37-302f-4219-8ba3-34657b776ef2","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":136,"box":{"x":69,"y":785,"width":799,"height":12}},{"id":"e9f21fde-4531-426f-9576-9fbd6b6d8973","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":136,"box":{"x":69,"y":801,"width":755,"height":11}},{"id":"5d0c138a-02e4-42be-991e-cd42b0fa49f0","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":136,"box":{"x":69,"y":816,"width":831,"height":11}},{"id":"92b9f07b-01de-4802-93f4-392fbaa94eb6","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":136,"box":{"x":69,"y":831,"width":806,"height":11}},{"id":"17e8abe8-88a6-48b1-b3fe-d25a55c2196d","block_type":"box","text":"public information about the company (e.g., in connection with par ticipation in a creditors’ committee). Moreover,","page_number":136,"box":{"x":70,"y":846,"width":805,"height":11}},{"id":"66ad49b2-7cd7-4e49-81b2-0747d9cb6f03","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":136,"box":{"x":69,"y":861,"width":784,"height":11}},{"id":"12cfb9bc-c076-4128-99c3-e3b84db57f2e","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":136,"box":{"x":70,"y":876,"width":827,"height":11}},{"id":"016321db-85f3-46fe-befa-c411c6a0c612","block_type":"box","text":"of a Fund, including where BlackRock and/or clients advised by BlackRock already have an interest in such issuer or","page_number":136,"box":{"x":69,"y":891,"width":830,"height":12}},{"id":"ad6897df-968e-4d1c-9d9a-1f616b5404fe","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":136,"box":{"x":68,"y":906,"width":773,"height":11}},{"id":"65043fbd-d6d4-478b-9645-cfa24cb7a762","block_type":"box","text":"II-96","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95d3e838-0bfd-466b-93e5-2b377f495f12","block_type":"box","text":"NM1026U-5982643-136/241","page_number":136,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"e0599f1c-b16f-4dd1-816c-61e6bd0327d7","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":137,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"95f68587-0771-489d-a5e9-920c5af8a32a","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":137,"box":{"x":68,"y":60,"width":781,"height":11}},{"id":"b8db5392-91c2-42a6-9f06-1f6b1fa6075e","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":137,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"56519a6d-326d-464d-85ed-0891b11c2b45","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":137,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"2bb71516-0983-4052-a848-c3430a2a79cc","block_type":"box","text":"of the issuer.","page_number":137,"box":{"x":69,"y":105,"width":92,"height":9}},{"id":"ebacb997-c283-401d-83c3-359bfd96c7f4","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":137,"box":{"x":102,"y":128,"width":748,"height":11}},{"id":"fc2982dd-110c-44aa-9396-eda7144a654a","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":137,"box":{"x":69,"y":143,"width":819,"height":11}},{"id":"3c272e67-cfe8-4309-8886-e74f0b44df27","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":137,"box":{"x":70,"y":158,"width":817,"height":11}},{"id":"097d8e7b-072e-4b3c-b552-a5f92d99b272","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":137,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"0fa74ff0-fa29-4383-9c6e-231fb06ed804","block_type":"box","text":"make decisions or take (or refrain from taking) actions with respect to clients they advise in a manner different than","page_number":137,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"4f208772-0573-482d-aaa0-dff77b37dabd","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":137,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"dc5f5318-1427-4946-b554-a06f240ad76f","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":137,"box":{"x":68,"y":218,"width":797,"height":12}},{"id":"b93e289e-427c-46bc-bbdb-464fa084ed86","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":137,"box":{"x":70,"y":234,"width":667,"height":11}},{"id":"89d2661a-7500-4afd-916f-ed18cc7bf72d","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":137,"box":{"x":102,"y":256,"width":794,"height":12}},{"id":"060f6806-c835-42d4-8ab9-86527e106366","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":137,"box":{"x":69,"y":271,"width":791,"height":12}},{"id":"3d576682-4f92-4400-84d3-fef03e18c1ef","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":137,"box":{"x":70,"y":286,"width":812,"height":12}},{"id":"1146c9de-b5f0-4a1e-b56f-bd4baaed670d","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":137,"box":{"x":70,"y":302,"width":818,"height":11}},{"id":"ed86c0cd-27da-4a24-b215-66a9fdde9770","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":137,"box":{"x":70,"y":317,"width":830,"height":11}},{"id":"87b3feb7-8040-4ff4-b167-e581f5490120","block_type":"box","text":"senior personnel, in other units of BlackRock, and generally will not manage the Funds with the benefit of information","page_number":137,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"6730f8a8-c455-4aa6-8f9a-087a84b4be60","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":137,"box":{"x":70,"y":347,"width":824,"height":11}},{"id":"83c47be2-e073-4bc5-a1fb-6a72d40e292c","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":137,"box":{"x":68,"y":362,"width":472,"height":11}},{"id":"a8f9ae3b-4f1e-4162-a0c5-390cadc1f177","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":137,"box":{"x":102,"y":385,"width":744,"height":11}},{"id":"2fc17823-c26e-4772-b671-e25b9993dfdc","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":137,"box":{"x":70,"y":400,"width":775,"height":11}},{"id":"c556c322-2ce2-410f-b5cb-362b0b083594","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":137,"box":{"x":69,"y":415,"width":818,"height":11}},{"id":"3ed9e8ad-8c3e-4692-b1f8-0867dd01634e","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":137,"box":{"x":68,"y":430,"width":779,"height":11}},{"id":"60b7e2c9-6a92-4f91-80cf-25c06fdc08fc","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":137,"box":{"x":69,"y":445,"width":771,"height":12}},{"id":"bf80724e-9c33-4b7d-acc1-31b9115fb6e8","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":137,"box":{"x":68,"y":460,"width":812,"height":12}},{"id":"478ee4d2-18b3-4d26-9552-36e7be7db848","block_type":"box","text":"purchased or sold for a client in the absence of a change to an information barrier). Information barriers may not","page_number":137,"box":{"x":70,"y":475,"width":803,"height":12}},{"id":"a8d23521-1ad4-4a82-8bca-2ebb9c6570df","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":137,"box":{"x":69,"y":491,"width":813,"height":11}},{"id":"e2fa4972-1ab0-4306-b186-27a0d3598e08","block_type":"box","text":"and actions by personnel on one side of a barrier may impact the potential actions of personnel on the other side of","page_number":137,"box":{"x":69,"y":506,"width":829,"height":11}},{"id":"25e7873f-bf2e-4d3f-91c8-67ba65bea812","block_type":"box","text":"a barrier.","page_number":137,"box":{"x":69,"y":521,"width":62,"height":9}},{"id":"200da83c-ef20-4588-9ec9-3600fc5c66fb","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":137,"box":{"x":101,"y":543,"width":788,"height":12}},{"id":"9cf183ee-cd50-4f48-b1c0-a6d265a54f1f","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":137,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"09357460-1454-49fe-baec-3ad7c04530a2","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":137,"box":{"x":69,"y":574,"width":805,"height":11}},{"id":"3295ad53-76e9-4d4c-b63c-8f75a5cb92b6","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":137,"box":{"x":69,"y":589,"width":840,"height":11}},{"id":"13646330-5d1e-4bf3-b982-22c6748ef49c","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":137,"box":{"x":69,"y":604,"width":806,"height":11}},{"id":"ff0b42af-1363-4257-a571-701c75b8b67b","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":137,"box":{"x":70,"y":619,"width":818,"height":11}},{"id":"dac967b8-7086-44f9-8e89-f4ad60e633cf","block_type":"box","text":"that operate in cer tain industries (e.g., banking, insurance, and utilities) or in cer tain emerging or international","page_number":137,"box":{"x":68,"y":634,"width":789,"height":12}},{"id":"1b3a3d12-e793-4c5f-bb64-36ea78d1dc34","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (e.g., with mechanisms such as poison pills","page_number":137,"box":{"x":69,"y":650,"width":831,"height":11}},{"id":"b739f4ea-0cc9-4d56-a030-8feb68a8157a","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":137,"box":{"x":70,"y":664,"width":816,"height":12}},{"id":"3f58149e-a9a1-4ee5-8c59-e42a0fa3d5a1","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":137,"box":{"x":70,"y":680,"width":825,"height":11}},{"id":"a59998c9-8e12-418f-a9f7-79344bfc222d","block_type":"box","text":"not be exceeded without the grant of a license or other regulatory or corporate approval, order, consent, relief, waiver","page_number":137,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"34643ae8-b3be-4693-aac3-aa003ae418a1","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":137,"box":{"x":69,"y":710,"width":769,"height":11}},{"id":"491c0d6e-7aec-4aea-affc-53319635aef5","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":137,"box":{"x":69,"y":725,"width":775,"height":11}},{"id":"adba36d4-e02c-4168-a6e9-af58aa17e744","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":137,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"57d2705d-93da-463f-9309-ac770054d010","block_type":"box","text":"seek to make indirect investments (e.g., using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":137,"box":{"x":69,"y":755,"width":798,"height":11}},{"id":"04a2ec26-e476-470e-9678-d2b2cdaa5e67","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":137,"box":{"x":69,"y":770,"width":817,"height":12}},{"id":"f90246f4-7c90-4361-8e7b-68c4ab8abee8","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":137,"box":{"x":69,"y":786,"width":795,"height":11}},{"id":"07d63272-47c4-4e9e-82b6-4376add0d4c9","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":137,"box":{"x":68,"y":801,"width":799,"height":11}},{"id":"61b09972-e480-4025-9712-3ab26bed27a6","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":137,"box":{"x":69,"y":816,"width":767,"height":11}},{"id":"e66f3a7f-5a5a-43db-b829-fd419aead0e4","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":137,"box":{"x":69,"y":831,"width":829,"height":11}},{"id":"6eeb1c6c-f14c-4865-a471-310d0a30d433","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":137,"box":{"x":69,"y":846,"width":772,"height":11}},{"id":"be411715-a298-4abe-88a9-9d4c71134218","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":137,"box":{"x":102,"y":869,"width":783,"height":11}},{"id":"1a82c52b-ba80-495d-a976-46ba6f0fd0d6","block_type":"box","text":"client or as a result of corporate actions by the issuer, the ability of BlackRock on behalf of clients to purchase or","page_number":137,"box":{"x":69,"y":884,"width":808,"height":11}},{"id":"3ad9a771-fe44-48c7-b8bf-843f07c4a787","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":137,"box":{"x":69,"y":899,"width":837,"height":11}},{"id":"099aa2bb-b0e5-4f23-abd6-dd465cfa19fa","block_type":"box","text":"II-97","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4546876f-d550-4ed7-97ce-8eb0e9033f62","block_type":"box","text":"NM1026U-5982643-137/241","page_number":137,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"cd007892-b79a-4314-beef-000022003ccc","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":138,"box":{"x":70,"y":45,"width":818,"height":11}},{"id":"6b1ff12a-d752-47e6-9606-4cb79db168c8","block_type":"box","text":"an ownership limitation or restriction, a client may be unable to purchase or directly hold a security the client would","page_number":138,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"2e8ec8ba-84ea-4abd-ac4f-6de55b7561bc","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":138,"box":{"x":69,"y":75,"width":806,"height":11}},{"id":"bb89640a-30dc-45c2-a479-1c09ab5e50ec","block_type":"box","text":"instead of the specific client being restricted. For index funds, this means a fund may not be able to track its index as","page_number":138,"box":{"x":70,"y":90,"width":839,"height":11}},{"id":"b8d5a323-f224-423c-9499-a2af4ac55d7d","block_type":"box","text":"closely as it would if it was not subject to an ownership limitation or restriction because the fund cannot acquire the","page_number":138,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"45c768bc-9219-4957-8b72-114c34eb57e3","block_type":"box","text":"amount of the impacted security included in its index. BlackRock on behalf of its clients may limit purchases, sell","page_number":138,"box":{"x":69,"y":120,"width":807,"height":11}},{"id":"ec62b55d-d35b-4fee-8e65-009ecca726f0","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":138,"box":{"x":69,"y":135,"width":830,"height":12}},{"id":"658eadbf-f3d8-4fd0-8ca6-9ec10ee1c033","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":138,"box":{"x":69,"y":150,"width":765,"height":12}},{"id":"80ae888c-1691-4427-8046-cc0b2d9354dd","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":138,"box":{"x":69,"y":166,"width":781,"height":11}},{"id":"6298e899-31e9-4027-a7bb-41e7fee8a2fe","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":138,"box":{"x":69,"y":181,"width":796,"height":11}},{"id":"610ceb06-d147-4d69-8b02-5e2e37d062b9","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":138,"box":{"x":69,"y":196,"width":720,"height":11}},{"id":"4e07174d-cfcf-4f4c-bbb2-a5b58fbae916","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":138,"box":{"x":101,"y":219,"width":807,"height":11}},{"id":"ecb4f857-a3a0-47f6-a57c-348712c3588a","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":138,"box":{"x":70,"y":234,"width":810,"height":11}},{"id":"56d9b29b-f8b5-494a-9537-842b1fede037","block_type":"box","text":"permission will be granted, or that, once granted, it will not be modified or revoked at a later date with minimal or no","page_number":138,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"2dc7e170-f73e-4819-860b-8fe9946ed7e6","block_type":"box","text":"notice. The issuer and/or regulator may also require that BlackRock on behalf of itself and its clients take or refrain","page_number":138,"box":{"x":69,"y":264,"width":824,"height":11}},{"id":"51bac287-104b-4c05-9d40-5f1add4dd07d","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":138,"box":{"x":68,"y":279,"width":841,"height":11}},{"id":"1eea864a-8019-4fe6-b3cb-ef5e046fb48e","block_type":"box","text":"may accept if it believes the benefits outweigh the costs and may limit BlackRock from taking actions that it","page_number":138,"box":{"x":69,"y":294,"width":770,"height":11}},{"id":"b71c1728-48c2-4a7f-a7c4-f8629b950f35","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":138,"box":{"x":69,"y":309,"width":769,"height":11}},{"id":"1e1d5155-b197-40b5-9d37-532aaf22ff7d","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":138,"box":{"x":70,"y":325,"width":794,"height":11}},{"id":"edd01973-59cb-4111-b7f2-858e2bfd8d79","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":138,"box":{"x":69,"y":340,"width":757,"height":11}},{"id":"fb128145-8a89-4746-870c-39543e67e50d","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":138,"box":{"x":69,"y":355,"width":807,"height":11}},{"id":"58e2160c-f709-4994-a2d1-0fce305002a8","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":138,"box":{"x":69,"y":370,"width":833,"height":11}},{"id":"5eb0a786-8a15-40a5-b7a0-fc2026f4c586","block_type":"box","text":"respect to ETFs, remove such securities from the list of Deposit Securities to be delivered to the Fund in connection","page_number":138,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"5ef4a8af-c705-4076-b382-292edf0bb9f1","block_type":"box","text":"with purchases of Creation Units of such Fund. If client holdings of an issuer exceed an applicable threshold and","page_number":138,"box":{"x":68,"y":400,"width":803,"height":11}},{"id":"5718cedc-4dc4-46b5-bb33-9e548306af85","block_type":"box","text":"BlackRock is unable to obtain relief to enable the continued holding of such investments, it may be necessary to","page_number":138,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"b98dc98d-243c-469a-a225-45ab23c37ddb","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":138,"box":{"x":69,"y":430,"width":826,"height":11}},{"id":"2feaa088-c44c-4936-9b38-01c169088d1d","block_type":"box","text":"actions. In these cases, the investments will be sold in a manner that BlackRock deems fair and equitable over time.","page_number":138,"box":{"x":69,"y":445,"width":834,"height":11}},{"id":"8f32a87f-17ea-4aca-add7-36b70ff0a254","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":138,"box":{"x":102,"y":468,"width":795,"height":11}},{"id":"c3dcbd2f-ec12-4275-b602-386a1d45d8c8","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":138,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"a01d40ef-63a4-4a38-9406-b98e0054d7dc","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":138,"box":{"x":69,"y":498,"width":566,"height":11}},{"id":"4b784e81-6fa2-4eb9-ab59-b23bdd62241f","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":138,"box":{"x":102,"y":521,"width":798,"height":11}},{"id":"68981808-e05d-491f-a80d-21ddd0e002bf","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":138,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"70e9d098-052e-4d93-8685-69bfbc70bb33","block_type":"box","text":"strategy with respect to such security or asset.","page_number":138,"box":{"x":69,"y":551,"width":333,"height":11}},{"id":"ac431691-0e0c-49a0-be28-c2731c487c07","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":138,"box":{"x":102,"y":574,"width":785,"height":11}},{"id":"13bbeedf-cb6a-41e0-a88d-2dfbee3818fb","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":138,"box":{"x":70,"y":589,"width":760,"height":11}},{"id":"51c5f985-69d2-4c70-af2d-3df942062fdc","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":138,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"7c57e40e-bdc4-4201-997a-753fa46c9dbc","block_type":"box","text":"providers, including BlackRock (to the extent permitted by applicable law), may be paid licensing fees for use of their","page_number":138,"box":{"x":70,"y":619,"width":830,"height":11}},{"id":"67c25e3b-03cd-4bd6-8bc2-d66b2132a679","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":138,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"cdf84655-3087-4147-9784-3b83a80a37c1","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":138,"box":{"x":68,"y":649,"width":829,"height":12}},{"id":"b888814b-ace3-438a-9464-dc9ab2de56c3","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":138,"box":{"x":69,"y":664,"width":784,"height":12}},{"id":"e5e5e1f6-2755-42e9-a461-cc2535a9566d","block_type":"box","text":"indices. BlackRock is not obligated to license its indices to a Fund and the Funds are under no obligation to use","page_number":138,"box":{"x":70,"y":680,"width":797,"height":11}},{"id":"a3de71cb-c7b5-440c-8c72-5e10340b99b4","block_type":"box","text":"BlackRock indices. Any Fund that enters into a license for a BlackRock index cannot be assured that the terms of any","page_number":138,"box":{"x":70,"y":695,"width":837,"height":11}},{"id":"f1d4ff4a-87eb-46d8-8e77-1d3c962f113e","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":138,"box":{"x":70,"y":710,"width":746,"height":11}},{"id":"45dc49db-de85-4209-9f41-ea679fbb8e44","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (e.g., custodians,","page_number":138,"box":{"x":102,"y":733,"width":805,"height":11}},{"id":"3025f9b6-5873-423c-880c-4f0300471c5e","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":138,"box":{"x":69,"y":748,"width":756,"height":11}},{"id":"c4a50939-7cbc-4f56-866e-68df7781f0ff","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":138,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"9f735a91-381c-487a-972e-3f8461765f95","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":138,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"e820f182-e5cf-4463-9f73-2152fcf13bb8","block_type":"box","text":"provider’s services are terminated with respect to a Fund. To the extent that BlackRock is responsible for paying","page_number":138,"box":{"x":70,"y":793,"width":800,"height":11}},{"id":"160beade-234c-4310-b289-0e9a61933ab7","block_type":"box","text":"service providers out of its fees that it receives from the Funds, the benefits of lower fees, including any fee","page_number":138,"box":{"x":69,"y":808,"width":771,"height":11}},{"id":"64c9c631-13fb-46c6-a2cf-59b6499fe35b","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":138,"box":{"x":69,"y":823,"width":839,"height":12}},{"id":"b6498c95-d5e9-4546-9efd-516873047674","block_type":"box","text":"in conflicts of interest relating to the use or termination of service providers to a Fund. In addition, conflicts of","page_number":138,"box":{"x":70,"y":838,"width":785,"height":12}},{"id":"de6f20b5-e6f5-42da-929c-fdd9fcf7ba07","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":138,"box":{"x":70,"y":854,"width":786,"height":11}},{"id":"507d27b7-662f-41d8-875b-a4b9d1053fd7","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":138,"box":{"x":69,"y":869,"width":837,"height":11}},{"id":"48f95319-eb30-45bd-9712-271f0a0bcf5f","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":138,"box":{"x":69,"y":884,"width":809,"height":11}},{"id":"f5e70308-8b5c-4b40-9fe2-77e6bbb8f1bb","block_type":"box","text":"II-98","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a3e858d1-cc9b-480d-9edb-d12683c04f22","block_type":"box","text":"NM1026U-5982643-138/241","page_number":138,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f7b0a56f-a096-4870-b8b0-317ce6993b58","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":139,"box":{"x":102,"y":45,"width":788,"height":11}},{"id":"2ac677f2-9f7f-4617-82a2-a469582084b2","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":139,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"90427d26-2c7d-4a43-9387-0471a7355ad0","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":139,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"77f20330-6501-4c8a-b3af-6154c4398e02","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":139,"box":{"x":70,"y":90,"width":363,"height":9}},{"id":"bf25773b-896a-4957-a52e-bb37ed6c90cd","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":139,"box":{"x":102,"y":113,"width":757,"height":11}},{"id":"cf3f0588-d0cf-4169-978c-31859725b0aa","block_type":"box","text":"information systems used by Fund service providers. These systems are, or will be, used by a Fund service provider","page_number":139,"box":{"x":70,"y":128,"width":826,"height":11}},{"id":"68cc5bd6-74fd-4002-8bf2-7d64c329833e","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":139,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"f244fb2e-ab35-47fe-9a96-8306885176f7","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":139,"box":{"x":69,"y":158,"width":782,"height":11}},{"id":"ab9620a4-cfee-4690-99e0-4db5cb078cb4","block_type":"box","text":"provider remunerates BlackRock for the use of the systems. A Fund service provider’s payments to BlackRock for the","page_number":139,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"d903c959-9558-4ffb-868f-c7b62a932b2a","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":139,"box":{"x":69,"y":188,"width":465,"height":11}},{"id":"1df2c8b1-e3f3-4475-8da6-b250181bf561","block_type":"box","text":"BlackRock’s receipt of fees from a service provider in connection with the use of systems provided by BlackRock","page_number":139,"box":{"x":102,"y":211,"width":804,"height":11}},{"id":"3a3e7bed-a865-433f-a204-7e82a18506bb","block_type":"box","text":"may create an incentive for BlackRock to recommend that a Fund enter into or renew an arrangement with the service","page_number":139,"box":{"x":69,"y":226,"width":840,"height":11}},{"id":"e3b7bf77-309b-40ee-89a9-bacd71f23904","block_type":"box","text":"provider.","page_number":139,"box":{"x":70,"y":241,"width":58,"height":11}},{"id":"1be96e2f-c555-4de2-a139-ea0c7b9f74e9","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":139,"box":{"x":102,"y":264,"width":778,"height":11}},{"id":"3c2bcb2f-4575-427c-be04-6641b6b347ff","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":139,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"c851a37e-7b7d-489b-ba3f-de1d50fe5283","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":139,"box":{"x":68,"y":294,"width":485,"height":11}},{"id":"cede3d94-1706-4996-9383-e772ffdde649","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":139,"box":{"x":102,"y":317,"width":742,"height":11}},{"id":"8b9a0d62-cbf3-4b77-9107-3c3a31af1af8","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":139,"box":{"x":69,"y":332,"width":517,"height":11}},{"id":"49a007a6-d9b4-4dbb-866e-a3becee05540","block_type":"box","text":"PURCHASE OF SHARES","page_number":139,"box":{"x":395,"y":361,"width":188,"height":10}},{"id":"d6adefbd-5cc1-4c98-9f8d-758eea15de0c","block_type":"box","text":"Most BlackRock-advised open-end funds offer multiple classes of shares under a plan adopted under Rule 18f-3","page_number":139,"box":{"x":102,"y":384,"width":800,"height":11}},{"id":"b7fd49e4-faa4-403d-8551-4bce48cf49a9","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":139,"box":{"x":69,"y":399,"width":771,"height":12}},{"id":"d599798e-3dae-4eed-b16e-b4148a9dc588","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":139,"box":{"x":69,"y":414,"width":822,"height":12}},{"id":"df38e7ce-aa0c-4beb-bc46-e4308ed14a12","block_type":"box","text":"generally not subject to an initial sales charge, and Investor C Shares are sold to investors choosing the deferred","page_number":139,"box":{"x":68,"y":429,"width":809,"height":12}},{"id":"2db088c3-472d-4f43-b598-08632a2ba8bb","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":139,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"87960eb3-1ac1-4840-b51b-7f9a36e96b5f","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":139,"box":{"x":68,"y":460,"width":833,"height":11}},{"id":"ff1befb5-6fe9-408e-8fd4-81ec17e10f1e","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":139,"box":{"x":68,"y":475,"width":833,"height":11}},{"id":"486cb69b-b7b1-471d-95bf-71973e31b35b","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":139,"box":{"x":69,"y":490,"width":835,"height":11}},{"id":"f9fb546c-5e3f-427f-9842-710bd04a7b6d","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":139,"box":{"x":69,"y":505,"width":804,"height":11}},{"id":"d9e817cf-6dff-459e-bc88-d4a490223f9b","block_type":"box","text":"platforms, which are platforms where clients invest in the Fund through a single omnibus account in the name of a","page_number":139,"box":{"x":70,"y":520,"width":816,"height":12}},{"id":"ae175bff-376a-4d10-934c-f86600976a44","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":139,"box":{"x":68,"y":535,"width":835,"height":11}},{"id":"28c653a8-d6e8-4906-9f34-7cc603e0daab","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":139,"box":{"x":69,"y":551,"width":834,"height":11}},{"id":"a9771515-cb13-420b-8d5c-643e2554168e","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":139,"box":{"x":69,"y":566,"width":757,"height":11}},{"id":"7d850449-54fd-4f63-893c-9fe0ded9097c","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":139,"box":{"x":69,"y":581,"width":802,"height":11}},{"id":"35c8c53a-84f6-422f-941e-e5f63667552c","block_type":"box","text":"The applicable offering price for purchase orders is based on the NAV of a Fund next determined after receipt of","page_number":139,"box":{"x":101,"y":603,"width":799,"height":12}},{"id":"5fce09a9-ffa8-4b5e-babf-5180a5f79b65","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":139,"box":{"x":68,"y":618,"width":798,"height":12}},{"id":"8e069e45-c288-4780-9949-2cee2a64e07c","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":139,"box":{"x":70,"y":634,"width":795,"height":11}},{"id":"1a86de69-d0f6-4e12-a09e-64d57d469b9d","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":139,"box":{"x":68,"y":649,"width":786,"height":11}},{"id":"8691a7b0-9bb0-45a7-ac30-6743dfa1a9da","block_type":"box","text":"offering price of each affiliated underlying fund is based on the NAV of such affiliated underlying fund next determined","page_number":139,"box":{"x":69,"y":664,"width":839,"height":11}},{"id":"cfecac82-dae9-47a1-83e3-14fe7f3dfc37","block_type":"box","text":"after a purchase order is received, or deemed to be received upon receipt by a Selling Dealer, by the BlackRock","page_number":139,"box":{"x":69,"y":679,"width":795,"height":11}},{"id":"e2468170-78c9-48d3-8673-bbdee34b94fc","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":139,"box":{"x":68,"y":694,"width":819,"height":11}},{"id":"a2ae108e-b275-41e5-a596-5a3f6db23909","block_type":"box","text":"orders received by Selling Dealers or BlackRock Target Date Funds prior to the close of business on the New York","page_number":139,"box":{"x":69,"y":709,"width":808,"height":11}},{"id":"0431c7a8-df21-4cf4-a8c5-37529167243a","block_type":"box","text":"Stock Exchange (“NYSE”) (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the order is placed,","page_number":139,"box":{"x":69,"y":724,"width":803,"height":12}},{"id":"ce76349a-6169-462b-b07f-dcce1d3e847f","block_type":"box","text":"including orders received after the close of business on the previous day, the applicable offering price is based on","page_number":139,"box":{"x":70,"y":739,"width":812,"height":12}},{"id":"7b33d41c-24e8-4673-ac1b-17d14e433f5c","block_type":"box","text":"the NAV determined as of the close of business on the NYSE on that day. If the purchase orders are not received by","page_number":139,"box":{"x":68,"y":755,"width":828,"height":11}},{"id":"38ba4b23-9697-4671-b7be-662e131ea017","block_type":"box","text":"the Selling Dealer or a BlackRock Target Date Fund before the close of business on the NYSE, such orders are","page_number":139,"box":{"x":68,"y":770,"width":788,"height":11}},{"id":"1b388e19-c76f-43d6-a20c-23585c6b2364","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":139,"box":{"x":69,"y":785,"width":779,"height":11}},{"id":"f098de49-ff1c-481f-a4c0-34d7b1a93c06","block_type":"box","text":"payment on a timely basis. Generally, if payment is not received within the period described in the Prospectuses, the","page_number":139,"box":{"x":70,"y":800,"width":830,"height":11}},{"id":"2e4d8fef-f292-458a-8367-f4f10569d690","block_type":"box","text":"order will be canceled, notice thereof will be given, and the broker and its customers will be responsible for any loss","page_number":139,"box":{"x":69,"y":815,"width":828,"height":11}},{"id":"fe472860-772e-483f-ad3b-4bda13c4700e","block_type":"box","text":"to the Fund or its shareholders. Orders of less than $500 may be mailed by a broker to the Transfer Agent.","page_number":139,"box":{"x":68,"y":829,"width":762,"height":12}},{"id":"35b834e4-2ab8-4319-9041-ff6c67776d24","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":139,"box":{"x":101,"y":853,"width":768,"height":11}},{"id":"e537c706-2ca8-400b-addb-7299fbec43e3","block_type":"box","text":"minimum initial investment for employees of a Fund, a Fund’s Manager, Sub-Advisers or BRIL or employees of their","page_number":139,"box":{"x":69,"y":868,"width":819,"height":11}},{"id":"2413d498-364f-4c9a-9c36-7b960a19f70a","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":139,"box":{"x":69,"y":882,"width":769,"height":12}},{"id":"50580bb5-4bbe-4f5f-901a-4e63383e60f2","block_type":"box","text":"investment is $25.","page_number":139,"box":{"x":70,"y":898,"width":132,"height":10}},{"id":"e433118a-3cf0-4952-bd37-38d5c790cd97","block_type":"box","text":"II-99","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff5647d3-c2c2-4ac1-b7ff-1193a8905c99","block_type":"box","text":"NM1026U-5982643-139/241","page_number":139,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"d3d2bff7-7669-4a8a-8931-81da74b2210a","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":140,"box":{"x":102,"y":45,"width":802,"height":11}},{"id":"280277cc-f5b1-4ff1-b39d-3239c5eb8f46","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":140,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"8a591e77-e3b4-44a9-9fca-0dd01af9b300","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":140,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"9f991ef6-218f-4c24-b648-891a5754bdf8","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":140,"box":{"x":70,"y":90,"width":751,"height":11}},{"id":"7ecf94a4-3f7f-4b4e-bcc7-c4dd655480c8","block_type":"box","text":"subsequent investment requirements and suspend and resume the sale of any share class of any Fund at any time.","page_number":140,"box":{"x":69,"y":105,"width":826,"height":11}},{"id":"0d340a3c-f999-4ea5-9bd0-7cd411f826e8","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":140,"box":{"x":102,"y":128,"width":768,"height":11}},{"id":"6a96d3f8-91e5-46f6-91e7-4d4c083599b5","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":140,"box":{"x":68,"y":143,"width":807,"height":11}},{"id":"03e511ac-9891-4cc9-bd7a-94872fe5e849","block_type":"box","text":"class of shares of the same Fund, provided that the exchanged shares are not subject to a contingent deferred sales","page_number":140,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"21c77bc1-3f7b-4fad-934c-38906142db26","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":140,"box":{"x":69,"y":173,"width":814,"height":11}},{"id":"7c007351-1715-4727-a752-6c86e6e9f96f","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":140,"box":{"x":68,"y":188,"width":740,"height":11}},{"id":"9c76551b-e855-441d-adba-4c60224f29bb","block_type":"box","text":"Each Fund or the Distributor may suspend the continuous offering of the Fund’s shares of any class at any time","page_number":140,"box":{"x":102,"y":211,"width":795,"height":11}},{"id":"de34ccc5-0458-4449-8c6c-f045e785cde3","block_type":"box","text":"in response to conditions in the securities markets or otherwise and may resume offering the shares from time to","page_number":140,"box":{"x":70,"y":226,"width":813,"height":11}},{"id":"69d87eb5-4c4e-47c2-b6ce-d0214c61c4ea","block_type":"box","text":"time. Any order may be rejected by a Fund or the Distributor. Neither the Distributor, the securities dealers nor other","page_number":140,"box":{"x":68,"y":241,"width":827,"height":11}},{"id":"d936ea3c-780e-42b5-aae2-305e53c6aa03","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":140,"box":{"x":68,"y":256,"width":750,"height":12}},{"id":"403c4073-4072-4e68-acd4-5ff2ab6c0a63","block_type":"box","text":"The term “purchase,” as used in the Prospectus and this SAI, refers to (i) a single purchase by an individual,","page_number":140,"box":{"x":101,"y":279,"width":776,"height":11}},{"id":"e4bf9bbc-e3c3-45ba-92c9-061a7bd992db","block_type":"box","text":"(ii) concurrent purchases by an individual, his or her spouse and their children purchasing shares for his, her or their","page_number":140,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"0f763c0e-8929-429f-9b16-a30dfabb98ef","block_type":"box","text":"own account, and (iii) single purchases by a trustee or other fiduciary purchasing shares for a single trust estate or","page_number":140,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"08f4a08b-3a81-4f96-be71-0335b2804983","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":140,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"80165e74-9172-44d2-a4a4-fdc6a8cdd77c","block_type":"box","text":"purchases by any “company,” as that term is defined in the Investment Company Act, but does not include purchases","page_number":140,"box":{"x":70,"y":339,"width":839,"height":12}},{"id":"33054ad4-cf68-4a6b-8d80-1a1bcc432b61","block_type":"box","text":"by (i) any company that has not been in existence for at least six months, (ii) a company that has no purpose other","page_number":140,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"3602f413-7acb-41c8-addb-46a6701db816","block_type":"box","text":"than the purchase of shares of a Fund or shares of other registered investment companies at a discount, or (iii) any","page_number":140,"box":{"x":68,"y":370,"width":827,"height":11}},{"id":"35a1d1dc-377f-4202-a56e-b5c9f9e0b145","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":140,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"ad37608c-9cf3-4ed3-b53a-08253d46b8a0","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":140,"box":{"x":70,"y":400,"width":788,"height":11}},{"id":"04a09a7c-ba2e-45bf-af4c-a9374b77150d","block_type":"box","text":"adviser.","page_number":140,"box":{"x":69,"y":415,"width":53,"height":9}},{"id":"f9b07bc8-053f-43ad-86b9-ddc3de3e48b8","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":140,"box":{"x":101,"y":438,"width":795,"height":11}},{"id":"402c7d35-15fb-4112-b2f2-df6af3b5da00","block_type":"box","text":"and may not be distributed by a foreign financial intermediary. Under this policy, in order to accept new accounts or","page_number":140,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"542e73f3-298b-415e-a186-6cff8ef2226c","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":140,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"2db57f04-9ec7-49da-b4ce-c9796cf48ea7","block_type":"box","text":"requires that (i) a shareholder that is a natural person be a U.S. citizen or resident alien, in each case residing within","page_number":140,"box":{"x":69,"y":483,"width":834,"height":11}},{"id":"1c2d3ef0-1976-4c41-b891-038c94a6caf9","block_type":"box","text":"the United States or a U.S. territory (including APO/FPO/DPO addresses), and have a valid U.S. taxpayer","page_number":140,"box":{"x":68,"y":498,"width":747,"height":11}},{"id":"a8e67e78-cba8-4e88-88a4-7c96a96901ee","block_type":"box","text":"identification number, and (ii) a financial intermediary or a shareholder that is an entity be domiciled in the United","page_number":140,"box":{"x":70,"y":513,"width":809,"height":11}},{"id":"fdb6e6e4-5a63-445d-8ca8-d06d906f3668","block_type":"box","text":"States and have a valid U.S. taxpayer identification number or be domiciled in a U.S. territory and have a valid U.S.","page_number":140,"box":{"x":69,"y":528,"width":819,"height":12}},{"id":"b692e075-b2df-4928-8176-027076f7acd9","block_type":"box","text":"taxpayer identification number or IRS Form W-8. Any existing account that is updated to reflect a non-U.S. address will","page_number":140,"box":{"x":68,"y":543,"width":840,"height":12}},{"id":"ef9f6059-fef8-4683-a214-185e389a0858","block_type":"box","text":"also be restricted from making additional investments.","page_number":140,"box":{"x":69,"y":559,"width":388,"height":11}},{"id":"892de549-b8f4-4f12-bd5e-dece73cfd487","block_type":"box","text":"In-Kind Purchases","page_number":140,"box":{"x":102,"y":582,"width":127,"height":8}},{"id":"37e2c4fe-e2f2-4c86-aea9-caec70cd256a","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":140,"box":{"x":230,"y":581,"width":649,"height":11}},{"id":"29b3aefe-4cef-4c70-aef3-e90d9ad23894","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":140,"box":{"x":69,"y":596,"width":779,"height":12}},{"id":"f8c1e33e-1587-4962-a8a6-4f6314db6090","block_type":"box","text":"limitations of the Fund as described herein. In connection with an in-kind securities payment, the Fund may require,","page_number":140,"box":{"x":70,"y":612,"width":820,"height":11}},{"id":"20cd3d0a-6849-4df1-9a77-2aeb723d6115","block_type":"box","text":"among other things, that the securities: (i) be valued on the day of purchase in accordance with the pricing methods","page_number":140,"box":{"x":69,"y":627,"width":827,"height":11}},{"id":"c8ccdbcb-204c-451b-a35c-6e7e3a4250ba","block_type":"box","text":"used by the Fund; (ii) be accompanied by satisfactory assurance that the Fund will have good and marketable title to","page_number":140,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"ecb044fd-6e53-42a2-acbe-5eccb188dd6e","block_type":"box","text":"such securities; (iii) not be subject to any restrictions upon resale by the Fund; (iv) be in proper form for transfer to","page_number":140,"box":{"x":69,"y":657,"width":817,"height":11}},{"id":"0ea69caa-f366-4ef2-a9e5-aa353b2a931d","block_type":"box","text":"the Fund; and (v) be accompanied by adequate information concerning the basis and other tax matters relating to the","page_number":140,"box":{"x":68,"y":672,"width":837,"height":11}},{"id":"4bc9afb4-4f53-4e55-a1ea-5b147475bf5c","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":140,"box":{"x":69,"y":687,"width":835,"height":11}},{"id":"aa608a21-0163-4845-adb9-c3748738d6a4","block_type":"box","text":"of the Fund engaged in the in-kind purchase transaction and must be delivered to the Fund by the investor upon","page_number":140,"box":{"x":69,"y":702,"width":795,"height":12}},{"id":"31302a89-5b9e-4a65-b797-4c1546dc671b","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":140,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"25e34dcd-4f01-43b4-8d56-bfd67671c9fe","block_type":"box","text":"has settled.","page_number":140,"box":{"x":69,"y":733,"width":83,"height":9}},{"id":"5c70e172-04d5-461c-8434-ed9f3e653901","block_type":"box","text":"Institutional Shares","page_number":140,"box":{"x":69,"y":763,"width":142,"height":9}},{"id":"9e5d9223-da4c-44fd-87f6-0c3ab4735b91","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":140,"box":{"x":102,"y":786,"width":759,"height":11}},{"id":"8b9b9886-b58d-43d4-861f-66ba51613e3b","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":140,"box":{"x":70,"y":801,"width":756,"height":11}},{"id":"4f7564eb-e1ee-43a9-8a33-66cd1593d7f2","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":140,"box":{"x":70,"y":816,"width":775,"height":11}},{"id":"85853d23-9c33-41de-8fc8-9c81d9715ffc","block_type":"box","text":"Investor A, Investor A1, Investor C, Investor P, Class R or Service Shares. A Fund may in its discretion waive or modify","page_number":140,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"be430f6b-3cf2-44b7-baed-06d185334bc6","block_type":"box","text":"any minimum investment amount, may reject any order for any class of shares and may suspend and resume the","page_number":140,"box":{"x":69,"y":846,"width":807,"height":11}},{"id":"5761d90e-ee37-4d8f-9528-23952d88a8d7","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":140,"box":{"x":69,"y":861,"width":276,"height":11}},{"id":"2608be90-e045-4aa9-a136-bda2148287a5","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":140,"box":{"x":102,"y":884,"width":259,"height":11}},{"id":"b14224af-b04c-4bbb-ab3c-5d0b94c283ad","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":140,"box":{"x":369,"y":884,"width":540,"height":11}},{"id":"025b803f-ff8e-44cb-858e-80476b53e80c","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":140,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"68ea2b48-469b-4a79-bb81-5cbc86c8eb95","block_type":"box","text":"II-100","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"13c0f5db-14d0-4d46-9e13-63e8ad497904","block_type":"box","text":"NM1026U-5982643-140/241","page_number":140,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"03598ad9-0708-4080-b823-04180260eb6b","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":141,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"2103704c-5edd-43e7-aeee-10f1a0cc97cb","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":141,"box":{"x":69,"y":60,"width":819,"height":11}},{"id":"b9d1fa58-f44f-4e38-bd2b-ab2d30083242","block_type":"box","text":"redemption of Fund shares. Each broker-dealer or agent is responsible for transmitting to its customers a schedule of","page_number":141,"box":{"x":69,"y":75,"width":840,"height":11}},{"id":"50dfb360-5b56-4979-9866-98e0a73691d1","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":141,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"bfe2e371-4d34-4c8b-be05-b172587e8833","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":141,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"cb41000a-1054-47e9-aa5c-68248bec78f0","block_type":"box","text":"these fees and conditions.","page_number":141,"box":{"x":68,"y":120,"width":189,"height":9}},{"id":"27811772-7173-4fac-9e0d-5f61b03e5b3f","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":141,"box":{"x":102,"y":143,"width":805,"height":11}},{"id":"a542809b-5c3e-4a79-86bd-3251f5eff3df","block_type":"box","text":"4 p.m. (Eastern time) on the first business day following receipt of the order. Payment may also, in the discretion of","page_number":141,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"10de0269-74e6-4d20-9fa9-b8737c5dbcbf","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":141,"box":{"x":69,"y":173,"width":817,"height":11}},{"id":"3456ce72-fbff-459a-858c-25a5c1a22df1","block_type":"box","text":"purchase order is not received by the prescribed time, an investor may be liable for any resulting losses or expenses","page_number":141,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"1316b7dc-2995-4c4e-bcf0-5142c94edd1c","block_type":"box","text":"incurred by the Fund.","page_number":141,"box":{"x":70,"y":204,"width":147,"height":11}},{"id":"c3d8ca89-8465-4640-8cfd-1461700a6647","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":141,"box":{"x":102,"y":226,"width":774,"height":11}},{"id":"5918420d-8df4-47e8-b9e8-8e3ade1788dd","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":141,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"bcb5aef8-6f74-4b18-b326-85043362f049","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":141,"box":{"x":70,"y":256,"width":773,"height":11}},{"id":"468ce234-df62-425b-ba3c-755c9e39cf10","block_type":"box","text":"immediate family members of such persons; individuals and “Institutional Investors” with a minimum initial","page_number":141,"box":{"x":70,"y":271,"width":762,"height":12}},{"id":"eee167da-696b-4ba6-bae6-f78a3e2e0152","block_type":"box","text":"investment of $2 million who may purchase shares of a Fund through a financial intermediary that has entered into","page_number":141,"box":{"x":70,"y":286,"width":821,"height":12}},{"id":"44830eb5-95d6-43ba-96fb-5013edf97545","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":141,"box":{"x":69,"y":302,"width":819,"height":11}},{"id":"5454e28d-bafa-4376-b214-5c3d587160b8","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":141,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"ace37dc5-c544-4b3a-9523-2503896ebf31","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":141,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"880d7c68-139e-4f9c-b2b7-0153f402ed4d","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":141,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"94b6220d-dfa6-47c5-8886-73418a5364f3","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":141,"box":{"x":69,"y":362,"width":815,"height":11}},{"id":"708bf384-5d1b-4ca4-be87-ae0ec9ceace1","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":141,"box":{"x":69,"y":377,"width":789,"height":12}},{"id":"2418335a-586e-4f4d-84af-8a024c413a13","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":141,"box":{"x":70,"y":392,"width":772,"height":12}},{"id":"d87523b3-f2c0-42a0-adb4-22c2c8be9808","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":141,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"54415353-b31f-4a94-893a-8003f30668b4","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":141,"box":{"x":68,"y":423,"width":783,"height":11}},{"id":"1483027e-eefe-4995-950a-8ba68d9e68d7","block_type":"box","text":"(i) charge such clients a fee for advisory, investment consulting, or similar services or (ii) have entered into an","page_number":141,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"189a21f3-2ee8-4f51-a271-728892fcc45b","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":141,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"ebd3cf9a-50f9-4c4d-a449-32286cf5ec3b","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":141,"box":{"x":69,"y":468,"width":831,"height":11}},{"id":"446f11bf-60fe-4ec5-a9eb-9ac72a20d5ac","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":141,"box":{"x":69,"y":483,"width":751,"height":11}},{"id":"1d52c0ee-dfb1-4d64-b69c-2418b9fb4659","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":141,"box":{"x":69,"y":498,"width":817,"height":11}},{"id":"9766d93f-c08a-48a9-b1a1-32400258cc05","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":141,"box":{"x":69,"y":513,"width":773,"height":12}},{"id":"9795ca82-e0d3-4a0b-9aad-34b6dd8c6d19","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":141,"box":{"x":69,"y":528,"width":771,"height":12}},{"id":"11df29dc-89b1-4dbd-9a96-3b5a1267895a","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":141,"box":{"x":69,"y":543,"width":822,"height":11}},{"id":"2b8fd782-9ecb-4004-b354-55436793217d","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":141,"box":{"x":68,"y":559,"width":771,"height":11}},{"id":"f610cb14-dc2d-4092-862f-6fa9a0d6f5b8","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":141,"box":{"x":70,"y":573,"width":801,"height":12}},{"id":"6b554718-3d2d-4b84-883f-731b85779270","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":141,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"976a2b14-caba-4f9e-a150-bf23651b96aa","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":141,"box":{"x":102,"y":612,"width":280,"height":11}},{"id":"20118e7f-4ac8-43ab-8f7c-a8c2c87607c2","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":141,"box":{"x":389,"y":612,"width":496,"height":11}},{"id":"c7c2467c-254a-4b3d-a279-b510d3f18cd1","block_type":"box","text":"Funds, BofA Corp. or their respective affiliates; and any trust, pension, profit-sharing or other benefit plan for such","page_number":141,"box":{"x":70,"y":627,"width":812,"height":11}},{"id":"a5783ff5-49e6-47e2-aa7b-8228bfd52c63","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":141,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"9fec2937-9e35-44b2-8b96-8b67f91b8848","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":141,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"2b1586da-60aa-4a1a-b0c2-113c3f11159d","block_type":"box","text":"with the Fund. Employees, directors, and board members of other funds wishing to purchase shares of a Fund must","page_number":141,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"6362e233-daa1-447d-b188-0e83e7cc393c","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":141,"box":{"x":69,"y":687,"width":279,"height":11}},{"id":"7c4813ea-3675-4861-9397-72b184bf2685","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":141,"box":{"x":69,"y":718,"width":382,"height":11}},{"id":"756743ea-302f-4e95-9781-64f618b8441c","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":141,"box":{"x":102,"y":740,"width":770,"height":11}},{"id":"fbdabcf9-67c2-4882-a0e0-d9d4f0074a1a","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":141,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"d07447cd-cf9c-402e-8c9a-88fd28663e8a","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":141,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"becc4103-85ce-4eb7-af12-6334c14d94b6","block_type":"box","text":"for dividend and capital gain reinvestment only. The Investor A1 initial sales charge does not apply to the transactions","page_number":141,"box":{"x":68,"y":785,"width":840,"height":12}},{"id":"63be02e4-6568-4ab3-800e-c0dafe55636b","block_type":"box","text":"described in (i) and (ii). For ease of reference, Investor A, Investor A1 and Investor P (discussed below) Shares are","page_number":141,"box":{"x":69,"y":801,"width":815,"height":11}},{"id":"0dc5a4da-ff83-40a4-a745-f5b634f68cab","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":141,"box":{"x":69,"y":816,"width":791,"height":11}},{"id":"2c80ae9b-73c5-4024-ba36-b565c547d4bf","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":141,"box":{"x":70,"y":831,"width":727,"height":11}},{"id":"56996e0e-f638-4537-8b72-d6d2f0b40e12","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":141,"box":{"x":102,"y":853,"width":770,"height":12}},{"id":"e807697d-7e13-4ea5-b2f3-28cbe673271b","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":141,"box":{"x":70,"y":869,"width":812,"height":11}},{"id":"d0ba8730-3ed5-4523-a3db-2c258311d69b","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":141,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"84183c4f-d517-4368-80b0-df71530ae84d","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":141,"box":{"x":69,"y":899,"width":826,"height":11}},{"id":"dee81432-5b75-47e1-a7e0-56258cf70f17","block_type":"box","text":"II-101","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"847ede4e-3882-4e53-a803-ef4abeabf9eb","block_type":"box","text":"NM1026U-5982643-141/241","page_number":141,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"78f45f88-e11f-49c3-a6cb-bb9f1a039a18","block_type":"box","text":"for an extended period of time also may elect to purchase Investor A Shares, because over time the accumulated","page_number":142,"box":{"x":68,"y":45,"width":808,"height":11}},{"id":"be2e3ea5-711d-42cf-a6b0-786d3d036914","block_type":"box","text":"ongoing service and distribution fees on CDSC shares may exceed the front-end load shares’ initial sales charge and","page_number":142,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"6def3a6a-b17f-49d8-b44a-a096032ce947","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":142,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"9b01896b-a328-41e6-8b9d-2563c42d955f","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":142,"box":{"x":70,"y":90,"width":789,"height":11}},{"id":"96551067-2610-483d-8428-41a6d6c81702","block_type":"box","text":"BlackRock front-end load and CDSC share holdings, will count toward a right of accumulation that may qualify the","page_number":142,"box":{"x":70,"y":105,"width":805,"height":11}},{"id":"2478a2a4-c454-4f00-8528-f472a46d099e","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":142,"box":{"x":70,"y":120,"width":792,"height":12}},{"id":"08215e3a-2631-4128-b3b2-b82aab580be0","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":142,"box":{"x":69,"y":135,"width":826,"height":12}},{"id":"0e9dd16a-9902-435d-9be5-cecabc2fb69f","block_type":"box","text":"have lower total returns than the initial sales charge shares. The ongoing front-end load shares’ service fees will","page_number":142,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"acfe301a-b14c-4a16-9822-59721115c805","block_type":"box","text":"cause Investor A, Investor A1, Investor P and Service Shares to have a higher expense ratio, pay lower dividends and","page_number":142,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"6ed7ca5d-c8ed-45c6-993a-624e22db2025","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":142,"box":{"x":69,"y":181,"width":358,"height":9}},{"id":"c4acd5f6-4eb6-469e-b7e3-8366c3bdc755","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":142,"box":{"x":102,"y":203,"width":734,"height":12}},{"id":"64a26c25-e7c4-4744-980b-e264af170359","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":142,"box":{"x":70,"y":218,"width":785,"height":11}},{"id":"6ab56388-b6db-491e-a0a6-4db199ca881c","block_type":"box","text":"periods indicated.","page_number":142,"box":{"x":70,"y":234,"width":124,"height":11}},{"id":"36c75db4-1421-4aaa-b6f1-a731a58499bf","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":142,"box":{"x":101,"y":256,"width":806,"height":11}},{"id":"b52f708d-6604-44f7-8e4d-4bb3c31ba676","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":142,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"f32f8023-8af0-4984-add8-c37567a28f42","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":142,"box":{"x":69,"y":286,"width":832,"height":12}},{"id":"13ab9009-a9ec-45e6-b9f4-9c92900cb5ae","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":142,"box":{"x":69,"y":302,"width":714,"height":11}},{"id":"9d61c887-a51d-490c-bd36-4b6ef1ebf60d","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":142,"box":{"x":69,"y":332,"width":297,"height":11}},{"id":"7ffe7d90-756d-44a0-a57f-0f1bac7c1492","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":142,"box":{"x":102,"y":355,"width":761,"height":11}},{"id":"68c35ca8-530e-4b2d-8f92-8b55b89ae83a","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":142,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"988e142e-1443-430f-aa4c-c74c1235dcb7","block_type":"box","text":"entered into an agreement with the Distributor to offer such shares and are subject to an initial sales charge. The","page_number":142,"box":{"x":69,"y":385,"width":812,"height":11}},{"id":"f9169314-5169-4f87-bd6b-35c5a9b060b6","block_type":"box","text":"ongoing front-end load shares’ service fees will cause Investor P Shares to have a higher expense ratio, pay lower","page_number":142,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"ea565ec6-2ca1-448e-b952-91fdb47e5857","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":142,"box":{"x":69,"y":415,"width":578,"height":9}},{"id":"9d5d5a50-634b-4e97-b119-9d6fd14f7098","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":142,"box":{"x":102,"y":438,"width":734,"height":11}},{"id":"f9dc5aa1-9af8-43fd-a57d-71b51e1b74df","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":142,"box":{"x":70,"y":453,"width":800,"height":11}},{"id":"b8f39864-4780-481d-b4c8-e18e9a4b50a6","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":142,"box":{"x":101,"y":475,"width":806,"height":12}},{"id":"14332db0-a55d-4975-8691-249174fe2ebe","block_type":"box","text":"the balance over such discounts. At times the Distributor may reallow the entire sales charge to such dealers. Since","page_number":142,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"8df412ed-f810-474d-a3a7-b5af0d1efe0e","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":142,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"43c201a8-5de2-4478-b9ad-d7a3ed576d6a","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":142,"box":{"x":69,"y":521,"width":714,"height":11}},{"id":"6198211d-a33e-40df-b005-bca2b5588b12","block_type":"box","text":"Reduced Initial Sales Charges","page_number":142,"box":{"x":69,"y":551,"width":219,"height":11}},{"id":"d8ca8af3-79eb-4b6e-a233-124abc9c027c","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":142,"box":{"x":102,"y":574,"width":782,"height":11}},{"id":"af422b27-3d0b-4189-8a9a-7d8b03b38393","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":142,"box":{"x":69,"y":589,"width":827,"height":11}},{"id":"28608cc7-ca1c-4c38-b417-5c44ea6a7214","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":142,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"77cf5844-6fe9-4a8d-a0bf-5ea8646f3b27","block_type":"box","text":"exchange shares of a Fund from one class of shares to another class of shares of the same Fund provided that the","page_number":142,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"ea393ec2-c428-44bb-bf8c-a931cee6bebb","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":142,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"45ffc07d-70f1-441a-9743-e3d674c3328b","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":142,"box":{"x":69,"y":649,"width":813,"height":12}},{"id":"55d8ba14-8093-4658-95be-c9c179248945","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":142,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"505c7ffb-19aa-48b6-8f5e-e49c84fc8002","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":142,"box":{"x":70,"y":680,"width":603,"height":11}},{"id":"bdaf1867-c56d-4486-bf42-1a0aeaeed01d","block_type":"box","text":"Reinvested Dividends.","page_number":142,"box":{"x":102,"y":702,"width":160,"height":9}},{"id":"2c878777-2d24-4894-a93c-35a89347ce95","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":142,"box":{"x":268,"y":702,"width":566,"height":12}},{"id":"6d5e4a16-6e93-48e3-9aad-44fd06126627","block_type":"box","text":"reinvestment of dividends.","page_number":142,"box":{"x":69,"y":717,"width":186,"height":9}},{"id":"759564a9-704e-4411-b3a5-1113cbeb7e0d","block_type":"box","text":"Right of Accumulation.","page_number":142,"box":{"x":102,"y":740,"width":166,"height":11}},{"id":"f738937b-05e6-40fc-8eae-ceb2cf57aa0c","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":142,"box":{"x":275,"y":740,"width":574,"height":11}},{"id":"1a4542e4-dca0-48bf-9345-0979d2b0fd5a","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":142,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"a71a991a-0e24-4ecc-b0a7-080b8555a034","block_type":"box","text":"a reduced front-end sales charge: (i) the current value of an investor’s existing Investor A, Investor A1, Investor C,","page_number":142,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"ae7db071-4dbe-40df-9f63-ddba40a2c9ae","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares in most BlackRock Funds, (ii) the current value of an investor’s","page_number":142,"box":{"x":70,"y":785,"width":825,"height":11}},{"id":"6d20d28a-fc46-4978-b701-4121d6e8d46c","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":142,"box":{"x":69,"y":801,"width":780,"height":11}},{"id":"04e65d9a-9f30-44b6-ac7d-60d16249754a","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":142,"box":{"x":70,"y":816,"width":828,"height":11}},{"id":"c3ad65b0-da7e-4e1a-949e-877da193623f","block_type":"box","text":"CollegeAdvantage 529 Program by the investor or by or on behalf of the investor’s spouse and children. Financial","page_number":142,"box":{"x":69,"y":831,"width":804,"height":11}},{"id":"b189c860-d404-4167-8141-52fe42a35a5d","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":142,"box":{"x":70,"y":846,"width":794,"height":11}},{"id":"bb513d93-f968-4756-98da-abd824857e45","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":142,"box":{"x":70,"y":861,"width":814,"height":11}},{"id":"0d70f912-c000-4ef4-808d-72b8fa66da94","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":142,"box":{"x":70,"y":876,"width":828,"height":11}},{"id":"d8b85982-8461-44d7-9427-b747cc9c46d1","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":142,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"4353777f-21ef-455b-8b7b-73cb59e4a67d","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":142,"box":{"x":70,"y":906,"width":776,"height":12}},{"id":"115d366f-849b-4701-b6a0-235ab5ff9420","block_type":"box","text":"II-102","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c0c3821b-94d5-4ab7-a0f5-8d720ba6b78a","block_type":"box","text":"NM1026U-5982643-142/241","page_number":142,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"5b1e2145-cc99-4de3-b7c8-19222fec7d56","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":143,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"239fca8b-8a5d-4975-a075-e0b596aacfc3","block_type":"box","text":"charge, an investor’s existing Investor A, Investor A1, Investor C, Investor P, Institutional, Class K and Premier Shares","page_number":143,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"b25c9884-2ca2-4809-94f1-d97b3f9ea17b","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":143,"box":{"x":70,"y":75,"width":829,"height":11}},{"id":"37e95298-c4dd-43a8-9449-bc739cd8c614","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":143,"box":{"x":70,"y":90,"width":774,"height":11}},{"id":"11ea7561-cfea-492f-88cb-8fbd1b2fa51d","block_type":"box","text":"Letter of Intent.","page_number":143,"box":{"x":102,"y":113,"width":114,"height":9}},{"id":"ab76324e-9685-49bb-a1e4-72edee49b93d","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":143,"box":{"x":222,"y":113,"width":680,"height":11}},{"id":"bfd2bed3-e226-4a1f-ba8b-9d7f5fdf2a71","block_type":"box","text":"Intent” stating the investor’s intention to make one or more of the following investments within the next 13 months","page_number":143,"box":{"x":70,"y":128,"width":820,"height":11}},{"id":"e1303dc5-6f71-4019-b44f-cbb6186e045f","block_type":"box","text":"which would, if bought all at once, qualify the investor for a reduced sales charge: (i) buy a specified amount of","page_number":143,"box":{"x":68,"y":143,"width":792,"height":11}},{"id":"2381ec8b-8c1e-461e-ab90-ed9a3e36ff34","block_type":"box","text":"Investor A, Investor C, Investor P, Institutional, Class K and/or Premier Shares, (ii) make an investment in one or","page_number":143,"box":{"x":70,"y":158,"width":802,"height":11}},{"id":"f062357e-2edb-4e50-9fb3-454b5fb99a95","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":143,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"657c2c10-0d57-46ab-81a2-e37403ca2b59","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":143,"box":{"x":69,"y":188,"width":800,"height":12}},{"id":"075b56cc-1bee-490e-a38a-e3a3ca877853","block_type":"box","text":"initial purchase requirement. The 13-month Letter of Intent period commences on the day that the Letter of Intent is","page_number":143,"box":{"x":70,"y":203,"width":826,"height":12}},{"id":"4c4f2b23-47dd-4a77-ab48-0648fd1b380a","block_type":"box","text":"received by the Fund. The market value of current holdings in the BlackRock Funds (including Investor A, Investor C,","page_number":143,"box":{"x":69,"y":218,"width":822,"height":12}},{"id":"6f754f09-a6ba-4e1c-bb66-534aaf02d7d1","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":143,"box":{"x":70,"y":234,"width":764,"height":11}},{"id":"965add38-9140-4522-8493-479fbc3e3ca3","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":143,"box":{"x":70,"y":249,"width":800,"height":11}},{"id":"266f681d-66f7-418b-b1a9-0b1ff018656d","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":143,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"b47959d9-a2b9-471a-8c9c-accba7ad52c5","block_type":"box","text":"the Fund of (i) any current holdings in the BlackRock Funds, Eligible Unlisted BlackRock Closed-End Funds and/or the","page_number":143,"box":{"x":68,"y":279,"width":835,"height":11}},{"id":"8befbf76-d87a-458b-b5ec-79ebb1fc615b","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":143,"box":{"x":70,"y":294,"width":811,"height":11}},{"id":"78e33bb4-8482-4e0e-9af0-0cb77bcb7226","block_type":"box","text":"subsequent purchases that should be counted towards the Letter of Intent. During the term of the Letter of Intent,","page_number":143,"box":{"x":69,"y":309,"width":814,"height":11}},{"id":"51796704-964f-4c37-9de9-1e72dac174e5","block_type":"box","text":"the Fund will hold Investor A Shares and/or Investor P Shares, as applicable, representing up to 5% of the indicated","page_number":143,"box":{"x":68,"y":324,"width":827,"height":12}},{"id":"de51c75b-0064-4e38-bf0f-fc45e5355765","block_type":"box","text":"amount in an escrow account for payment of a higher sales load if the full amount indicated in the Letter of Intent is","page_number":143,"box":{"x":69,"y":339,"width":827,"height":12}},{"id":"e8d8427b-4f47-4d20-b217-a513f001293c","block_type":"box","text":"not purchased. If the full amount indicated is not purchased within the 13-month period, and the investor does not","page_number":143,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"a8d7456b-034f-4bec-8e55-a814b08bf0e1","block_type":"box","text":"pay the higher sales load within 20 days, the Fund will redeem enough of the Investor A Shares and/or Investor P","page_number":143,"box":{"x":70,"y":370,"width":807,"height":11}},{"id":"df84a162-ad20-49da-8487-1ae26c5a3fc6","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":143,"box":{"x":69,"y":385,"width":423,"height":11}},{"id":"ecdb44f2-c07a-42a2-9621-2ce7c4f9a01f","block_type":"box","text":"Placement Fees.","page_number":143,"box":{"x":102,"y":408,"width":120,"height":8}},{"id":"093af5af-efd7-42e0-a2a7-fe510810f9aa","block_type":"box","text":"BlackRock may pay placement fees to dealers on purchases of Investor A and Investor P Shares of all Funds,","page_number":143,"box":{"x":102,"y":430,"width":777,"height":11}},{"id":"8024d424-4ec8-44fe-8dba-749826572e6d","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":143,"box":{"x":68,"y":445,"width":704,"height":12}},{"id":"78038753-e7b7-423f-9ab6-c5d545c49f46","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":143,"box":{"x":102,"y":468,"width":741,"height":11}},{"id":"2fafdc84-e2b6-4f16-a70e-5f38200a2194","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":495,"width":361,"height":10}},{"id":"c8ade88e-3644-427b-87f8-12cbac9dc6b3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":143,"box":{"x":535,"y":496,"width":288,"height":9}},{"id":"fa3433f1-89d5-4895-a95e-bc4e50c5adb7","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":510,"width":361,"height":11}},{"id":"e3923ffc-af2d-4c00-b98f-0256dda2a014","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":143,"box":{"x":535,"y":511,"width":288,"height":9}},{"id":"a7720326-cbe7-4d32-aa5b-036c3cb9385d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":525,"width":345,"height":11}},{"id":"41da2879-fe97-4902-b58e-1bebd7252660","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":143,"box":{"x":518,"y":526,"width":305,"height":9}},{"id":"e316061b-9578-4d77-a256-38df4aa95c44","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":143,"box":{"x":101,"y":550,"width":776,"height":11}},{"id":"0d017d00-4b6a-426b-b66d-4059b9a10012","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":143,"box":{"x":69,"y":565,"width":774,"height":11}},{"id":"cacaa037-9741-4b94-ad0f-02699dd17543","block_type":"box","text":"purchased prior to July 1, 2020) of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV","page_number":143,"box":{"x":70,"y":580,"width":824,"height":11}},{"id":"13ce9aee-b037-4979-99da-88a703ca33f4","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":143,"box":{"x":69,"y":595,"width":695,"height":11}},{"id":"069d593f-e64b-4f72-acd8-8bef5f5baa57","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":622,"width":410,"height":11}},{"id":"21c4d46a-977e-461c-aa59-70340579b030","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":143,"box":{"x":583,"y":623,"width":240,"height":9}},{"id":"ddc2dac4-9882-40a6-9304-cf55c67d14af","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":637,"width":361,"height":11}},{"id":"37f5cea1-3a16-4c41-9869-ca77bd237c5d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":143,"box":{"x":535,"y":638,"width":288,"height":9}},{"id":"5c4f69d0-dcfd-45cb-a9c5-eeb59b980298","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":652,"width":345,"height":11}},{"id":"5e9959d0-ff31-45d5-a373-967c9ded3aa0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":143,"box":{"x":518,"y":653,"width":305,"height":9}},{"id":"0a760cac-00ea-4475-a49d-8f9826e25f16","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":143,"box":{"x":101,"y":677,"width":806,"height":11}},{"id":"49f30da4-af2f-463a-8172-1e6ae9f153c0","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":143,"box":{"x":68,"y":692,"width":821,"height":11}},{"id":"473869a3-56e8-43ed-8854-ce4241526cd2","block_type":"box","text":"SM","page_number":143,"box":{"x":890,"y":693,"width":11,"height":4}},{"id":"4bab8348-3b0e-48eb-987f-1babb63fa904","block_type":"box","text":",","page_number":143,"box":{"x":903,"y":700,"width":2,"height":3}},{"id":"29c03b08-9485-4091-a437-23c41bc98aea","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":143,"box":{"x":70,"y":707,"width":816,"height":12}},{"id":"664c6a75-2f9e-4d01-ad90-2382af338661","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":143,"box":{"x":70,"y":722,"width":835,"height":12}},{"id":"2276353c-22c6-481b-bde4-e20762629e4e","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":143,"box":{"x":70,"y":738,"width":520,"height":11}},{"id":"f672038b-2676-4e32-b590-9c21879cc769","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":765,"width":361,"height":10}},{"id":"de10ec9d-6f02-44b5-b33f-0bcde118d2e7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":143,"box":{"x":535,"y":765,"width":288,"height":9}},{"id":"ac3654bb-957a-4f3b-99f1-3b28a48974e3","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":780,"width":361,"height":10}},{"id":"3fa952cf-ff4a-4673-83d2-7ff335b57e8d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":143,"box":{"x":535,"y":780,"width":288,"height":9}},{"id":"a4d47252-405d-4f5b-a2b6-a5b769dd072a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":795,"width":345,"height":10}},{"id":"db476544-04d2-483f-b14e-9e9008b7d095","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":143,"box":{"x":518,"y":796,"width":305,"height":8}},{"id":"33dfb0dd-6ef1-4f79-9c48-e99d99fd6b8b","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":143,"box":{"x":101,"y":819,"width":743,"height":12}},{"id":"679b3777-cf49-4e69-9b01-570466f93144","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":143,"box":{"x":70,"y":835,"width":674,"height":11}},{"id":"725663a8-d499-47aa-8daa-3988be2c5bc6","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":862,"width":361,"height":10}},{"id":"44077d15-1c79-4c25-8ea9-cdc2cf2ad612","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":143,"box":{"x":535,"y":862,"width":288,"height":9}},{"id":"79d04fc5-9349-49b0-be3a-bce63e683982","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":877,"width":361,"height":10}},{"id":"a05bc029-8b26-402a-a586-dbfaaf56cca1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":143,"box":{"x":535,"y":878,"width":288,"height":8}},{"id":"93f522cc-2c0c-4274-84a2-7f47a5f80fa5","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":143,"box":{"x":167,"y":892,"width":345,"height":10}},{"id":"a1056054-77a3-4446-bc67-71421d3d5e2b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":143,"box":{"x":518,"y":893,"width":305,"height":9}},{"id":"ef036090-0a29-4e7d-9fcd-5bdff6d4fa9f","block_type":"box","text":"II-103","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"40661fb3-d1d3-4241-8c1d-29977026166e","block_type":"box","text":"NM1026U-5982643-143/241","page_number":143,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"6c809d6c-b4ef-4710-9de6-0c0a20df659f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":144,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"ec7663a4-0cb2-4580-85ee-84451aae40dd","block_type":"box","text":"may be up to the following amounts:","page_number":144,"box":{"x":69,"y":60,"width":257,"height":11}},{"id":"63cfff2a-2bd0-4d71-b729-d81fea1ed294","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":87,"width":410,"height":11}},{"id":"debb1ef2-04ec-4cc5-a0b9-25709d4c4e6d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":583,"y":88,"width":240,"height":8}},{"id":"65ec1a2c-4857-44e8-950f-68c249651cae","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":102,"width":361,"height":10}},{"id":"5abfb491-6ed7-4856-8865-29328f179747","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":535,"y":103,"width":288,"height":9}},{"id":"87d4d949-8331-4219-90e3-ec151b8c561f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":117,"width":345,"height":11}},{"id":"ff5cf12f-6d4d-4543-a020-71a031895f10","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":518,"y":118,"width":305,"height":9}},{"id":"a5522341-0b70-4ef2-8742-5711e7772f8c","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":144,"box":{"x":101,"y":142,"width":768,"height":11}},{"id":"8be30127-1805-42a7-93f7-5862b09dc825","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":157,"width":371,"height":11}},{"id":"f2a79466-508b-4743-abd1-cd109a97d9dd","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":184,"width":361,"height":10}},{"id":"d9c118f6-8158-422c-b94b-e3ae179ce4d7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":144,"box":{"x":535,"y":185,"width":288,"height":8}},{"id":"4c0b7b51-f4b8-49d7-9bdb-1035c38d44e9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":199,"width":361,"height":10}},{"id":"7427aec1-0959-43f2-84ac-2c17c6e2bd00","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":144,"box":{"x":535,"y":200,"width":288,"height":9}},{"id":"e8d624a1-90c1-4633-af4a-2543b5b4b687","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":214,"width":345,"height":11}},{"id":"a963fd84-14fa-4b3d-9a49-3abd7635dbae","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":144,"box":{"x":518,"y":215,"width":305,"height":9}},{"id":"1ed81c3f-1682-41da-b9c4-417cb983bea5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":144,"box":{"x":101,"y":239,"width":778,"height":11}},{"id":"1522bfb8-4f53-4360-9705-0176a7f535e9","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":144,"box":{"x":69,"y":254,"width":830,"height":11}},{"id":"cb6be07d-c817-4904-b7d2-f378a4c7aa51","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":269,"width":371,"height":11}},{"id":"45dabb7c-9f59-4100-b8a2-9cd9332a2e2a","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":296,"width":410,"height":11}},{"id":"670439b4-321f-490b-8045-30fb54200c5c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":144,"box":{"x":583,"y":297,"width":240,"height":9}},{"id":"e87fc0d3-7d01-4543-90b2-991677c79a59","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":311,"width":361,"height":11}},{"id":"efbf1ebc-7419-4db8-8763-b1338b85ead8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":312,"width":288,"height":9}},{"id":"8af307f1-bab9-4ce2-8409-c70973d76d0f","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":326,"width":345,"height":11}},{"id":"5f30dae8-04ce-4d03-9a72-daf02362313f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":327,"width":305,"height":9}},{"id":"234d8862-5963-4c1f-aa25-ac8c3ee20e41","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":144,"box":{"x":101,"y":351,"width":779,"height":11}},{"id":"a24be19f-a769-4391-8107-adc15d726bd8","block_type":"box","text":"Inc. (for shares purchased prior to March 18, 2019), the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":366,"width":780,"height":11}},{"id":"5c46b81e-5991-4e1d-acb6-47d161d0d674","block_type":"box","text":"$250,000 and above . . . .","page_number":144,"box":{"x":167,"y":393,"width":182,"height":11}},{"id":"48c148ca-5689-43ec-9489-a307fbc78a7f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":355,"y":394,"width":468,"height":9}},{"id":"26b8a37f-8259-45f9-9a6f-fd2bf265f575","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":144,"box":{"x":101,"y":418,"width":779,"height":11}},{"id":"5067a7d2-cdab-4976-98e0-0368f3394714","block_type":"box","text":"Inc. (for shares purchased on or after March 18, 2019 and prior to July 1, 2020), the placement fees may be up to","page_number":144,"box":{"x":70,"y":433,"width":819,"height":11}},{"id":"53e2a629-2197-48c9-b8e0-111217d527b1","block_type":"box","text":"the following amounts:","page_number":144,"box":{"x":68,"y":448,"width":161,"height":11}},{"id":"6ea7e647-641b-4bb9-a588-cd788c17fd96","block_type":"box","text":"$100,000 and above . . . .","page_number":144,"box":{"x":167,"y":475,"width":182,"height":11}},{"id":"1a66c9d5-ce67-43fa-8015-19408f91ab6a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":355,"y":476,"width":468,"height":8}},{"id":"c989da9e-788d-465a-8883-0935fa934f9a","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":144,"box":{"x":101,"y":499,"width":779,"height":11}},{"id":"c068a868-a2ad-4bef-ac46-9a2d7355510d","block_type":"box","text":"Inc. (for shares purchased on or after July 1, 2020), the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":515,"width":775,"height":11}},{"id":"5db0e2b2-64d3-4eec-aa4d-94e920279ea1","block_type":"box","text":"$250,000 and above . . . .","page_number":144,"box":{"x":167,"y":542,"width":182,"height":11}},{"id":"cda4076c-6cc9-4dc0-9750-376c2213cd57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":355,"y":542,"width":468,"height":9}},{"id":"d0ad128c-7dd7-497e-9014-e18bda674191","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":144,"box":{"x":101,"y":566,"width":788,"height":11}},{"id":"bf15c209-fcbf-4f2b-87b8-d26eec223425","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":144,"box":{"x":69,"y":581,"width":792,"height":11}},{"id":"0edeb737-6111-45fc-9130-18f577fbab6d","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":144,"box":{"x":70,"y":597,"width":787,"height":11}},{"id":"b8c393a2-ac29-40bc-9a4f-7a056a4cf1b4","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":144,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"2e3e8dee-38a5-48cd-b4f0-736947edb21a","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":144,"box":{"x":70,"y":627,"width":729,"height":11}},{"id":"15313235-e468-4c2c-a1db-420f17527074","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":654,"width":410,"height":11}},{"id":"46b5a9bb-36e9-4bb5-bac6-b3f4ba8a1546","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":144,"box":{"x":583,"y":655,"width":240,"height":8}},{"id":"cea5a80c-1635-48c4-8f0c-c6f28f319539","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":669,"width":361,"height":10}},{"id":"8ea9b4e1-dc51-4020-b50a-f10dec0d1d56","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":670,"width":288,"height":9}},{"id":"733f5df3-2ffe-4fca-8211-ca34cfc5016c","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":684,"width":345,"height":10}},{"id":"80c22829-a406-47f0-95f6-5f813648caf0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":685,"width":305,"height":9}},{"id":"4653474c-b9ce-489b-ae46-19c4f2342112","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":144,"box":{"x":101,"y":709,"width":801,"height":11}},{"id":"163cc33f-534b-4323-9795-61fb5b04c7a3","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":144,"box":{"x":69,"y":724,"width":769,"height":11}},{"id":"849a15e8-c4db-4aaa-920c-e39700e2a837","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":144,"box":{"x":70,"y":739,"width":818,"height":10}},{"id":"837ebe85-c80b-41ef-8998-3024b65fd352","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":144,"box":{"x":68,"y":754,"width":401,"height":11}},{"id":"1b9575ba-0ebf-4648-af17-fb2529461f7b","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":781,"width":410,"height":11}},{"id":"747d4f05-a0f6-43ca-8102-d7ae1da779d8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":144,"box":{"x":583,"y":782,"width":240,"height":9}},{"id":"e7da9286-7a43-4ee0-8ed0-243b6284c06d","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":796,"width":361,"height":11}},{"id":"eaea4a33-f4fc-44b9-9cd3-ecce43c08e2c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":144,"box":{"x":535,"y":797,"width":288,"height":9}},{"id":"fdf6ecc2-ca9d-4b85-962e-240987b834a8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":144,"box":{"x":167,"y":811,"width":345,"height":11}},{"id":"c8c96588-8625-48dd-acf8-33e2e8db0fec","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":144,"box":{"x":518,"y":812,"width":305,"height":9}},{"id":"08d0e2e5-3b40-4fb9-a986-e5285c4ad653","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":144,"box":{"x":101,"y":836,"width":398,"height":11}},{"id":"ba4cfb97-6eee-46ca-8a50-07b8bc79318c","block_type":"box","text":"®","page_number":144,"box":{"x":500,"y":836,"width":6,"height":5}},{"id":"6b8a9679-73a0-4083-a189-743a03913d1a","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":144,"box":{"x":513,"y":836,"width":264,"height":10}},{"id":"6be485ae-d27a-4aca-bbff-797e7511eb4b","block_type":"box","text":"®","page_number":144,"box":{"x":778,"y":836,"width":6,"height":5}},{"id":"bc789cf7-ae9e-4ade-ad75-d3c757f3371a","block_type":"box","text":"Index 2035","page_number":144,"box":{"x":791,"y":836,"width":79,"height":9}},{"id":"2f6cf9d6-e4e3-4eff-b15c-524c30748333","block_type":"box","text":"Fund, BlackRock LifePath","page_number":144,"box":{"x":70,"y":851,"width":177,"height":10}},{"id":"8ea6d849-33f3-43aa-b178-89b36634ebe5","block_type":"box","text":"®","page_number":144,"box":{"x":249,"y":851,"width":6,"height":5}},{"id":"c40531a7-241a-4260-9538-f23eece43d28","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":144,"box":{"x":261,"y":851,"width":265,"height":10}},{"id":"0ad46386-c80f-46c7-843a-4a8aca2374cf","block_type":"box","text":"®","page_number":144,"box":{"x":527,"y":851,"width":6,"height":5}},{"id":"600d02d5-bb9c-4a15-aeee-027d4b2c8c68","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":144,"box":{"x":539,"y":851,"width":265,"height":10}},{"id":"5180b160-e914-4bf7-9038-c8a079730df4","block_type":"box","text":"®","page_number":144,"box":{"x":805,"y":851,"width":6,"height":5}},{"id":"e5a03271-b5b0-47a5-bb96-8dadc58e04e1","block_type":"box","text":"Index 2050","page_number":144,"box":{"x":817,"y":851,"width":80,"height":9}},{"id":"2a0c892a-5d06-4d2e-a7ba-73adebc99875","block_type":"box","text":"Fund, BlackRock LifePath","page_number":144,"box":{"x":70,"y":866,"width":177,"height":11}},{"id":"24cd1dcb-523f-4320-958f-88d0300e0713","block_type":"box","text":"®","page_number":144,"box":{"x":248,"y":866,"width":6,"height":5}},{"id":"e2a39d55-ce61-4032-b487-3dfd8bb8a8df","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":144,"box":{"x":261,"y":866,"width":263,"height":11}},{"id":"51faa9f4-db4b-4eb8-9740-e3d743c55684","block_type":"box","text":"®","page_number":144,"box":{"x":526,"y":866,"width":6,"height":5}},{"id":"371b48bd-2855-4452-8f8c-83d0af91a894","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":144,"box":{"x":538,"y":866,"width":264,"height":11}},{"id":"da96b4a7-0d8c-4cba-80ca-b05eb6ebdca7","block_type":"box","text":"®","page_number":144,"box":{"x":803,"y":866,"width":6,"height":5}},{"id":"62c913ee-a3aa-4aac-9510-5a1070541edf","block_type":"box","text":"Index 2065","page_number":144,"box":{"x":815,"y":866,"width":80,"height":9}},{"id":"6fc25ffc-ed4f-4f3d-8d1f-acfc0c8325e8","block_type":"box","text":"II-104","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"17ba00ec-a205-4d4a-b105-b0de80c49367","block_type":"box","text":"NM1026U-5982643-144/241","page_number":144,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"4e09cbe1-ccf6-4f71-9211-da24ff719b7a","block_type":"box","text":"Fund, BlackRock LifePath","page_number":145,"box":{"x":70,"y":45,"width":177,"height":10}},{"id":"3799c2d6-b92b-4144-82b1-1178ef4c5699","block_type":"box","text":"®","page_number":145,"box":{"x":249,"y":45,"width":6,"height":4}},{"id":"a9a3ff7d-fcdf-451c-b0d4-9807ce368500","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":145,"box":{"x":261,"y":45,"width":291,"height":9}},{"id":"75969888-9a3d-4231-bdd3-935e8468d59a","block_type":"box","text":"®","page_number":145,"box":{"x":553,"y":45,"width":6,"height":4}},{"id":"412f5bde-eddd-430f-8c0c-9c3d8bac987a","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":145,"box":{"x":566,"y":45,"width":324,"height":10}},{"id":"f221744f-f7c4-4af0-aaba-bd35e96f2d14","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":60,"width":401,"height":11}},{"id":"f08ab7a1-0289-461c-b11f-0a40d173b4e2","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":145,"box":{"x":167,"y":87,"width":206,"height":11}},{"id":"f95475a4-5750-43f2-b6c0-55c0bb519852","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":145,"box":{"x":380,"y":88,"width":443,"height":8}},{"id":"11c18437-97b3-4187-b912-1eea728a9f1b","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":145,"box":{"x":101,"y":111,"width":657,"height":11}},{"id":"570b76c4-3762-4f4d-8b40-fbfffcbb635e","block_type":"box","text":"SM","page_number":145,"box":{"x":760,"y":112,"width":10,"height":4}},{"id":"39111cd1-40c3-4236-94cc-d6fb2496e2d1","block_type":"box","text":", the placement","page_number":145,"box":{"x":773,"y":112,"width":110,"height":10}},{"id":"cc677783-d47f-49ed-b5f3-f04cbd17ce32","block_type":"box","text":"fees may be up to the following amounts:","page_number":145,"box":{"x":68,"y":126,"width":294,"height":12}},{"id":"3e47c583-8ae1-4e0f-952b-3616cd2de2c4","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":145,"box":{"x":167,"y":154,"width":206,"height":11}},{"id":"c8802a0e-4a00-402c-b3d8-ce2712c3eb36","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":145,"box":{"x":380,"y":154,"width":443,"height":9}},{"id":"b0e26fe9-cc4a-4b79-b415-ba05e7b62a05","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":145,"box":{"x":101,"y":178,"width":787,"height":11}},{"id":"0bbca74f-de6a-4c7b-a953-44b84ee34750","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":145,"box":{"x":70,"y":193,"width":808,"height":11}},{"id":"5d28c708-b7c8-4be1-8df5-3b63d3994609","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":145,"box":{"x":70,"y":208,"width":393,"height":12}},{"id":"03026536-0373-49b4-90bd-4aeb2b0313e8","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":145,"box":{"x":102,"y":231,"width":740,"height":11}},{"id":"d5cd940f-c0d3-4bc2-ac2b-03a964417a20","block_type":"box","text":"example, a sale of $4 million wor th of Investor A Shares of BlackRock Impact Mor tgage Fund of BlackRock Funds V","page_number":145,"box":{"x":69,"y":246,"width":823,"height":11}},{"id":"235923f1-9f12-44e2-beba-50ff79e7a490","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":145,"box":{"x":68,"y":261,"width":780,"height":11}},{"id":"eaf7a8df-1da3-4175-b8b7-ea77a0b74bf6","block_type":"box","text":"$1 million).","page_number":145,"box":{"x":69,"y":276,"width":79,"height":11}},{"id":"72182b76-8d48-472a-9522-4ea075ad4cd5","block_type":"box","text":"Other.","page_number":145,"box":{"x":102,"y":299,"width":42,"height":9}},{"id":"b6ed5c06-3fd7-4d79-bdfb-e97be6757349","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":145,"box":{"x":149,"y":299,"width":699,"height":11}},{"id":"1fe27137-592b-4d25-9d3f-68070a4ca8c5","block_type":"box","text":"(a) cer tain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":145,"box":{"x":69,"y":314,"width":839,"height":11}},{"id":"50dc4d73-4c8f-49b0-a15b-f58054ad88f4","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through cer tain employer","page_number":145,"box":{"x":69,"y":329,"width":790,"height":12}},{"id":"9c5282cc-3747-4cea-a829-581c7f7f7fdb","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":145,"box":{"x":69,"y":344,"width":825,"height":11}},{"id":"327ad184-1086-44d2-b11c-b57b82177dc8","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":145,"box":{"x":68,"y":360,"width":773,"height":11}},{"id":"f53032cc-5284-4ddb-b6f9-2be275fb8c1b","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":145,"box":{"x":70,"y":375,"width":838,"height":11}},{"id":"85e2bd86-9054-4fb2-8240-3778484e608f","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":145,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"a7bb3fa7-eb33-48ac-8a10-bbba0d3f3bef","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":145,"box":{"x":69,"y":405,"width":836,"height":11}},{"id":"5504d246-0787-4b77-82be-c95cad752cda","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust depar tments exercising","page_number":145,"box":{"x":69,"y":420,"width":793,"height":11}},{"id":"9bdc74ce-41bb-42b6-a821-4ff59606832f","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons par ticipating in a","page_number":145,"box":{"x":69,"y":435,"width":811,"height":11}},{"id":"698e4d31-7709-4196-bcf2-e78080b145f8","block_type":"box","text":"fee-based program (such as a wrap account) under which they pay advisory fees to a broker-dealer or other financial","page_number":145,"box":{"x":68,"y":450,"width":827,"height":12}},{"id":"4148e6ea-072e-4385-b1b9-4ef421486b2e","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":145,"box":{"x":70,"y":465,"width":782,"height":12}},{"id":"58634c3a-668e-409e-af38-dfe8437c1676","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":145,"box":{"x":69,"y":481,"width":830,"height":11}},{"id":"55359b3c-e85a-4498-87f6-bde4000447f4","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":145,"box":{"x":69,"y":496,"width":815,"height":11}},{"id":"addd7b28-880e-4cd0-bd66-bbaa608f8c53","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":145,"box":{"x":70,"y":511,"width":799,"height":11}},{"id":"6603e1f9-9528-4b66-85ce-b61bb8ca911b","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":145,"box":{"x":69,"y":526,"width":752,"height":11}},{"id":"8cc0c276-6bbd-4420-a27b-39a87c333df2","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":145,"box":{"x":70,"y":541,"width":836,"height":11}},{"id":"7e91eba1-3524-4754-b3db-9f853e26d278","block_type":"box","text":"only up to the amount that was liquidated). The following persons associated with the Funds, the Fund’s Manager,","page_number":145,"box":{"x":69,"y":556,"width":812,"height":11}},{"id":"d550307c-2dd2-40ae-b692-f72b852652a6","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":145,"box":{"x":69,"y":571,"width":839,"height":12}},{"id":"1e1e583d-f4c0-4c9e-9f9a-151b6ac1cf6e","block_type":"box","text":"or Investor P Shares of each of the Funds without paying a sales charge to the extent permitted by these firms","page_number":145,"box":{"x":69,"y":586,"width":788,"height":12}},{"id":"f401d44e-8423-4a1a-8099-8401487458cc","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":145,"box":{"x":70,"y":601,"width":838,"height":12}},{"id":"6e2e53a3-4a88-4e5a-b17b-16b758c53f79","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":145,"box":{"x":69,"y":617,"width":810,"height":11}},{"id":"776935c7-0508-4080-ad45-8d72e3183868","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":145,"box":{"x":68,"y":632,"width":787,"height":11}},{"id":"7d60dfcc-5a18-4256-9dc2-eb09c5425851","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":145,"box":{"x":69,"y":647,"width":834,"height":11}},{"id":"6908fe49-b6d2-472b-b590-7d7ff137580d","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":145,"box":{"x":70,"y":662,"width":808,"height":11}},{"id":"605231d9-9a37-4b44-b154-beb8c87f4157","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":145,"box":{"x":69,"y":677,"width":837,"height":11}},{"id":"3bb4ce1e-4609-4b9c-ac0b-d8ad689cfc2d","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":145,"box":{"x":70,"y":692,"width":820,"height":11}},{"id":"131bd309-6b41-4603-9c53-54817f9e1a09","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":145,"box":{"x":69,"y":707,"width":813,"height":12}},{"id":"dfee67bc-f8c0-4c08-ac10-e1f0ed10f6d2","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":145,"box":{"x":70,"y":723,"width":831,"height":11}},{"id":"34d96655-9798-4ecf-bf61-024f92af0024","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":145,"box":{"x":69,"y":738,"width":783,"height":11}},{"id":"de203c69-4098-4a7c-afd7-9abfb2860314","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":145,"box":{"x":70,"y":753,"width":668,"height":11}},{"id":"e0b9d2b6-b234-476a-8800-59a08f2c4da2","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":145,"box":{"x":102,"y":775,"width":754,"height":12}},{"id":"e0a96112-3aaa-4b70-8281-0c481481b681","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":145,"box":{"x":70,"y":790,"width":823,"height":12}},{"id":"2781815e-c6e4-4944-a8d6-170353f88f7f","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":145,"box":{"x":69,"y":806,"width":833,"height":10}},{"id":"5b925b76-01a5-4441-adef-d25853dc543c","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":145,"box":{"x":70,"y":821,"width":802,"height":11}},{"id":"a0977b2e-277f-4aeb-91aa-fb954bd3dd6b","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":145,"box":{"x":70,"y":836,"width":781,"height":11}},{"id":"14f4e09d-f6ba-4f77-ad21-84a48300594e","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":145,"box":{"x":70,"y":851,"width":819,"height":11}},{"id":"bfd1e5f8-5e0e-4cab-8c80-e97ef72b9351","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":145,"box":{"x":68,"y":866,"width":835,"height":11}},{"id":"8a224a9c-bd88-4618-8a07-e8a03a20e6fc","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":145,"box":{"x":69,"y":881,"width":813,"height":11}},{"id":"f5f2d446-8203-44dd-ba75-e716a386d528","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":145,"box":{"x":70,"y":896,"width":792,"height":11}},{"id":"411af899-c7c5-4986-ac5f-2f2716254b8f","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":145,"box":{"x":70,"y":911,"width":813,"height":12}},{"id":"dfb91d6f-230f-4aea-9fc3-1f24979a3885","block_type":"box","text":"II-105","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6ac2cc9c-99f6-4b13-b5e5-d998e948f62e","block_type":"box","text":"NM1026U-5982643-145/241","page_number":145,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"c2e851cf-430a-4019-a4f1-179c35aa8b77","block_type":"box","text":"BlackRock Funds V) or more in Investor A or Investor P Shares, as applicable, you may not pay an initial sales charge.","page_number":146,"box":{"x":70,"y":45,"width":837,"height":11}},{"id":"618132b1-4cbd-48a1-bbfd-e6369cbd51d0","block_type":"box","text":"However, if you redeem your Investor A or Investor P Shares, as applicable, within 18 months after purchase (a","page_number":146,"box":{"x":70,"y":60,"width":790,"height":11}},{"id":"1b82c70e-3aec-4d99-bd09-817115d71acc","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":146,"box":{"x":69,"y":75,"width":736,"height":11}},{"id":"e8773258-6f82-46e8-a6ff-955b5e3dd132","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":146,"box":{"x":101,"y":98,"width":763,"height":11}},{"id":"295525ec-7188-4799-9fb1-7576b9c76404","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":146,"box":{"x":70,"y":113,"width":782,"height":11}},{"id":"75ce0c07-1f00-4502-9eee-81fced9fb69d","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":146,"box":{"x":70,"y":128,"width":832,"height":11}},{"id":"aafc6bf8-6be9-4461-bda0-40d353ce94e1","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":146,"box":{"x":68,"y":142,"width":839,"height":12}},{"id":"99f6696e-bc7b-4c75-82d9-fdd219e62806","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":146,"box":{"x":69,"y":158,"width":817,"height":11}},{"id":"a3150531-1f69-4f6e-a11d-f9f597762b3b","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":146,"box":{"x":69,"y":173,"width":811,"height":11}},{"id":"7f3ffedd-8985-4497-b1b1-47df79c1927c","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":146,"box":{"x":70,"y":188,"width":818,"height":12}},{"id":"6049fc00-b3ba-40dd-b1a2-b02b40414158","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":146,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"ff47c6c2-7453-4804-b93c-de89e2595351","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":146,"box":{"x":69,"y":218,"width":830,"height":12}},{"id":"76b91c47-40eb-4678-b4cb-9f4246b97686","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":146,"box":{"x":70,"y":234,"width":778,"height":11}},{"id":"d0b2dce7-e23b-48eb-823c-f7ed14e54bde","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":146,"box":{"x":70,"y":249,"width":526,"height":11}},{"id":"fd42bbb6-bd5b-446f-8c5a-e96a9e9a25e6","block_type":"box","text":"The deferred sales charge on Investor A or Investor P Shares, as applicable, is not charged in connection with:","page_number":146,"box":{"x":101,"y":271,"width":788,"height":12}},{"id":"86a6aef6-502e-48bc-ac53-53f685b62280","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":146,"box":{"x":69,"y":286,"width":819,"height":12}},{"id":"6dd12f3f-9ca6-4a3a-a736-dcf44bbaa5b1","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":146,"box":{"x":69,"y":302,"width":820,"height":11}},{"id":"674640ee-1e7f-47c7-9dc6-c951a90b60d7","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":146,"box":{"x":69,"y":317,"width":837,"height":11}},{"id":"44365e7a-644a-4689-a063-6858f9e17f02","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":146,"box":{"x":68,"y":332,"width":812,"height":11}},{"id":"49b7031a-49b6-47e6-ae79-7be6e57a17ea","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":146,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"d5e8fa8a-1a83-4830-9bdf-aec993b74561","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":146,"box":{"x":69,"y":362,"width":772,"height":11}},{"id":"32f132c2-674a-4d68-89fe-a3a380ce923b","block_type":"box","text":"distribution of account assets to a beneficiary of the decedent) or (ii) in connection with a shareholder’s disability (as","page_number":146,"box":{"x":69,"y":377,"width":835,"height":11}},{"id":"9c24dcb6-5f5c-4b09-867a-c55fbf5ab49a","block_type":"box","text":"defined in the Code) subsequent to the purchase of Investor A or Investor P Shares; (f) involuntary redemptions of","page_number":146,"box":{"x":69,"y":392,"width":814,"height":12}},{"id":"3350fdf2-b9e7-4d3a-b4d2-9411b22ed8c1","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":146,"box":{"x":70,"y":408,"width":772,"height":11}},{"id":"6ffb70ae-ad24-478b-a1b3-05eb82b2a1b9","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":146,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"f3d467b0-06c7-483b-9254-2284efe73deb","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":146,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"c3730588-7e6e-4bc8-ab03-a037a14205a6","block_type":"box","text":"the absolute discretion of a Fund.","page_number":146,"box":{"x":68,"y":453,"width":239,"height":9}},{"id":"2a9711d6-3d39-4c4d-8945-4f9d6420d0b8","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":146,"box":{"x":101,"y":475,"width":794,"height":12}},{"id":"e4ff2835-2704-4644-8c24-6e1fc820b51c","block_type":"box","text":"fee, the Fund may, at its own discretion, waive the CDSC related to purchases of $1,000,000 ($250,000 for","page_number":146,"box":{"x":68,"y":490,"width":776,"height":12}},{"id":"288d4f94-92d9-4af7-80bd-f82a6f8d6cf9","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":146,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"d8ef44f1-3c99-4cb4-a156-1577528720d1","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":146,"box":{"x":70,"y":521,"width":800,"height":10}},{"id":"424027bc-8ba7-4945-9b18-296108310c5a","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":146,"box":{"x":70,"y":536,"width":806,"height":11}},{"id":"11448185-9da8-40f5-9e95-19940e292e2d","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":146,"box":{"x":70,"y":551,"width":823,"height":11}},{"id":"385a2b2c-cda4-413f-89fb-6fb59f082ab1","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":146,"box":{"x":70,"y":566,"width":770,"height":11}},{"id":"4cc71951-1722-4215-81eb-4734ec271dce","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":146,"box":{"x":70,"y":581,"width":766,"height":11}},{"id":"2d4b4fc3-47ac-4204-9b95-721214243acc","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":146,"box":{"x":69,"y":596,"width":837,"height":12}},{"id":"43d192e1-d57d-428c-b84b-c3ab24963b61","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":146,"box":{"x":70,"y":612,"width":805,"height":11}},{"id":"f2b4d98b-483e-4edb-9c5f-6c77b5118dca","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":146,"box":{"x":70,"y":626,"width":832,"height":12}},{"id":"d971f702-49e8-4b08-9545-23132fe3fb1c","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":146,"box":{"x":70,"y":642,"width":828,"height":11}},{"id":"e7d854f0-e109-4cf9-9b5c-62568143da31","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":146,"box":{"x":70,"y":657,"width":746,"height":11}},{"id":"1fe45859-0b93-4d86-87bc-75b0f6e8cbbb","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":146,"box":{"x":70,"y":672,"width":307,"height":11}},{"id":"77af9f2a-2f56-435b-81eb-123084148c37","block_type":"box","text":"Investor A and Investor P Shares are also available at NAV to investors that, for regulatory reasons, are required","page_number":146,"box":{"x":102,"y":695,"width":799,"height":11}},{"id":"94fe979c-06f5-427f-a77d-a43a5e6ed5c4","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":146,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"cf91d8ad-9d47-48d7-9f9e-33846afaa2b2","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":146,"box":{"x":68,"y":725,"width":317,"height":11}},{"id":"a9827cae-d131-4fb9-a070-7bc08195da54","block_type":"box","text":"Acquisition of Certain Investment Companies.","page_number":146,"box":{"x":101,"y":748,"width":335,"height":11}},{"id":"710fab7b-4e57-4208-8b0b-0700ca6c0162","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":146,"box":{"x":443,"y":748,"width":413,"height":11}},{"id":"442b0dd8-067e-4752-b8b4-6b77bf7e803e","block_type":"box","text":"connection with the acquisition of the assets of, or merger or consolidation with, a personal holding company or a","page_number":146,"box":{"x":69,"y":763,"width":811,"height":11}},{"id":"c8cf3255-05c5-4619-aa8b-f70924f3ad0e","block_type":"box","text":"public or private investment company.","page_number":146,"box":{"x":70,"y":778,"width":266,"height":11}},{"id":"e9a6df1e-6249-4715-8706-debeaaf8471d","block_type":"box","text":"Purchases Through Certain Financial Intermediaries","page_number":146,"box":{"x":102,"y":801,"width":379,"height":11}},{"id":"58f4013c-8b1b-4b65-8d59-b187626b45db","block_type":"box","text":".","page_number":146,"box":{"x":482,"y":808,"width":2,"height":1}},{"id":"39918d86-6fda-4705-b9cd-a2e170afa0a8","block_type":"box","text":"Reduced sales charges may be applicable for purchases","page_number":146,"box":{"x":491,"y":801,"width":402,"height":11}},{"id":"22b39d9d-0f36-4f3f-b4d5-74d31c3c384e","block_type":"box","text":"of Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities","page_number":146,"box":{"x":69,"y":816,"width":787,"height":11}},{"id":"bbbfdf60-40b5-43c2-91db-732a6b562d0b","block_type":"box","text":"dealers and other financial intermediaries that meet and adhere to standards established by the Manager from time","page_number":146,"box":{"x":69,"y":831,"width":828,"height":11}},{"id":"e40daf36-6c92-4cd4-b33b-6b635f5516a5","block_type":"box","text":"to time.","page_number":146,"box":{"x":68,"y":846,"width":54,"height":9}},{"id":"47bfce2d-4594-4734-85c4-897053ee5ea6","block_type":"box","text":"II-106","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"59064e9d-985d-4f37-a8b9-0c43f84ebb6f","block_type":"box","text":"NM1026U-5982643-146/241","page_number":146,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"4880223c-d603-4468-b180-e98569116072","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":147,"box":{"x":69,"y":45,"width":405,"height":11}},{"id":"2efd90cd-849d-4327-9c6f-50b371e3e293","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":147,"box":{"x":102,"y":67,"width":799,"height":12}},{"id":"a27e1528-41f6-4d95-90d9-d34ff7c21ae7","block_type":"box","text":"as to the length of time they intend to hold their assets in a Fund. If you select Investor C Shares, you do not pay an","page_number":147,"box":{"x":69,"y":82,"width":828,"height":12}},{"id":"a8169fe8-dee0-4b59-832d-21c2ecda3512","block_type":"box","text":"initial sales charge at the time of purchase. A Fund will not accept a purchase order of $500,000 or more for","page_number":147,"box":{"x":70,"y":97,"width":778,"height":12}},{"id":"cd6ee441-8727-400c-9a1e-ef1f14865a43","block_type":"box","text":"Investor C Shares (may be lower on funds that have set a lower breakpoint for NAV). Your financial intermediary may","page_number":147,"box":{"x":70,"y":113,"width":826,"height":11}},{"id":"44646b40-5793-4c06-945a-24d8c883a0e0","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":147,"box":{"x":69,"y":128,"width":311,"height":9}},{"id":"1d13e3c5-39bf-4157-ae43-23059d205140","block_type":"box","text":"Investor C Shares are not available in accounts opened or held directly with a Fund that do not have a financial","page_number":147,"box":{"x":102,"y":150,"width":789,"height":12}},{"id":"6dc80890-9068-4dc6-b847-71dace3b41a0","block_type":"box","text":"intermediary associated with the account.","page_number":147,"box":{"x":70,"y":166,"width":297,"height":11}},{"id":"bcc0efe7-faa8-4c7d-b546-de67ee59b5a8","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":147,"box":{"x":102,"y":188,"width":669,"height":12}},{"id":"8c233f5a-dd1f-4ecc-93ee-29bbcc15ee6c","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":147,"box":{"x":101,"y":211,"width":763,"height":11}},{"id":"6a716044-fc88-47b3-acf1-a5afaec9a53c","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":147,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"8c987b05-b10a-49a5-b4b3-601b6bd1e42f","block_type":"box","text":"these fees potentially may be offset to the extent any return is realized on the additional funds initially invested in","page_number":147,"box":{"x":68,"y":241,"width":813,"height":11}},{"id":"a1853bdf-4e83-4eb2-8810-0f579b05849a","block_type":"box","text":"CDSC shares.","page_number":147,"box":{"x":69,"y":256,"width":97,"height":9}},{"id":"10441275-9563-40fa-b229-ef8f66b8643e","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":147,"box":{"x":102,"y":279,"width":804,"height":11}},{"id":"bd51ff10-c80b-4b49-ac7c-371412680d81","block_type":"box","text":"of purchase from its own funds. Proceeds from the CDSC and the distribution fee are paid to the Distributor and are","page_number":147,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"44d03393-0dea-449e-93c7-d38016b39afa","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":147,"box":{"x":69,"y":309,"width":786,"height":11}},{"id":"d815c9e2-898c-41ce-954e-99128d53c78c","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":147,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"fd8fd212-51db-4cc2-b026-d10de7f38070","block_type":"box","text":"of the CDSC and the ongoing distribution fee facilitates the ability of each Fund to sell the CDSC shares without a","page_number":147,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"05f796d4-1d20-4ece-a1c1-d9bc5acf115e","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":147,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"710c3f04-4116-4345-bfc8-64cd84b00dc0","block_type":"box","text":"Imposition of the CDSC and the distribution fee on CDSC shares is limited by FINRA (as defined below) asset-based","page_number":147,"box":{"x":70,"y":370,"width":822,"height":11}},{"id":"127a563b-16c1-4dfd-9ad7-bdab9ad6c0b2","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":147,"box":{"x":69,"y":385,"width":618,"height":11}},{"id":"d79bdff5-087c-4c29-bac8-4f3bd80d1cc8","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":147,"box":{"x":102,"y":407,"width":782,"height":12}},{"id":"d31959d1-8975-49ef-875e-9b2781d612c4","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":147,"box":{"x":70,"y":423,"width":764,"height":11}},{"id":"b611751d-a91e-4413-8dcb-03853b1e2af9","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":147,"box":{"x":69,"y":438,"width":820,"height":11}},{"id":"92030ac0-1fd2-4037-aa16-f016cf92cd5e","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":147,"box":{"x":70,"y":453,"width":806,"height":11}},{"id":"be7a72f2-241e-4d79-907e-7ddddc7cb5e7","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":147,"box":{"x":70,"y":468,"width":813,"height":11}},{"id":"90165dc8-35ed-49d5-81ea-b6a405cbd6ce","block_type":"box","text":"with sales of Investor A, Investor A1 and Investor P Shares. These may depend upon the policies, procedures and","page_number":147,"box":{"x":68,"y":483,"width":811,"height":11}},{"id":"31bb84d7-f303-4a3b-8ed9-0243cf626d93","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":147,"box":{"x":68,"y":498,"width":554,"height":11}},{"id":"b3447d80-b097-4f1d-bbdf-7668d5a3fc5d","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":147,"box":{"x":102,"y":521,"width":783,"height":11}},{"id":"b8619219-157a-40c6-a9ae-7af293b1fc52","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":147,"box":{"x":70,"y":536,"width":808,"height":11}},{"id":"d1ae0ddd-0db0-4168-8719-d929d4aaf328","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":147,"box":{"x":70,"y":551,"width":797,"height":11}},{"id":"09eb4381-c210-4253-a849-7178a47fd28f","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":147,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"7269e024-3063-4fca-bbba-dfc8c1317ce6","block_type":"box","text":"Investor A Shares.","page_number":147,"box":{"x":70,"y":581,"width":128,"height":9}},{"id":"cb67c191-3d11-461b-945b-6e0e930c16e9","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":147,"box":{"x":102,"y":604,"width":388,"height":9}},{"id":"94d44894-f585-4724-a63c-c406e241aedc","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":147,"box":{"x":102,"y":627,"width":804,"height":11}},{"id":"c7113181-84be-40f6-818a-52433c50f363","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":147,"box":{"x":69,"y":642,"width":794,"height":11}},{"id":"334ba1c3-4c90-4c91-b5fa-7f11af564026","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":147,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"caf2991b-4764-4f5d-9628-7ac99f0b5fdb","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":147,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"36e15f26-2e51-4861-864d-765b488a0d10","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":147,"box":{"x":70,"y":687,"width":793,"height":11}},{"id":"2ddffd37-15a1-437b-a6d4-a079eefca2fa","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":147,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"274296fe-abe3-4162-8d2b-09cd12cdb017","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":147,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"6ef743a9-6b1c-4099-a3d3-7d81fe01e0e6","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":147,"box":{"x":69,"y":732,"width":793,"height":12}},{"id":"5e3aa017-b6d9-402f-8060-38c7617c08c9","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":147,"box":{"x":69,"y":748,"width":817,"height":11}},{"id":"7e0f3688-83b4-400f-b7dc-252443cb0e49","block_type":"box","text":"the Effective Date. If, as of November 23, 2028 (eight years after the Effective Date), a financial intermediary has","page_number":147,"box":{"x":68,"y":763,"width":814,"height":11}},{"id":"99cd68fb-0ae7-4c62-a404-a498211cc9ee","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":147,"box":{"x":69,"y":778,"width":828,"height":11}},{"id":"4bd2edbc-cf15-4a5b-82c0-3cb5198e9e65","block_type":"box","text":"holding Investor C Shares through such financial intermediary will no longer be eligible to hold Investor C Shares and","page_number":147,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"5b386d08-80ab-404c-bd8f-39e26fa67aa2","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":147,"box":{"x":69,"y":808,"width":718,"height":11}},{"id":"6866cd77-f30c-4248-8ff1-127d1785bb9d","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":147,"box":{"x":102,"y":831,"width":764,"height":11}},{"id":"20954bfa-3140-4d15-8d51-5dca47e5f2cc","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":147,"box":{"x":70,"y":846,"width":816,"height":11}},{"id":"ba1b98cb-ed61-48df-aa30-f10c2fcf7a61","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":147,"box":{"x":69,"y":861,"width":772,"height":11}},{"id":"2acd1bcd-9f26-431a-936e-045045ba670e","block_type":"box","text":"“Investor C Conversions”).","page_number":147,"box":{"x":70,"y":876,"width":186,"height":11}},{"id":"e3e1753c-4bbb-4451-835f-aec4d670ca4b","block_type":"box","text":"II-107","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"65d8033d-bc6c-4fc6-84fd-bf479c45b307","block_type":"box","text":"NM1026U-5982643-147/241","page_number":147,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"027231be-5eb5-4b6f-aa60-91b1e8d6ec81","block_type":"box","text":"The Investor C Conversions will occur at least once each month (on the “Investor C Conversion Date”) on the","page_number":148,"box":{"x":101,"y":45,"width":776,"height":11}},{"id":"955d81f5-64fa-40bb-8967-5718b87b97ed","block_type":"box","text":"basis of the relative NAV of the shares of the two applicable classes on the Investor C Conversion Date, without the","page_number":148,"box":{"x":69,"y":60,"width":824,"height":11}},{"id":"557768be-07f2-4d57-b4a4-e7a8e47b4d7a","block_type":"box","text":"imposition of any sales load, fee or other charge. The Investor C Conversions will not be deemed a purchase or sale","page_number":148,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"d4aaa935-cb14-4960-aa91-6b429104768b","block_type":"box","text":"of the shares for U.S. federal income tax purposes. Shares acquired through reinvestment of dividends on Investor C","page_number":148,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"39e82021-061e-4a98-892a-8e994846a8da","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":148,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"842ed44b-89e3-48ae-85d1-942def0664ce","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":148,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"226bf950-e3c5-4239-8627-d264b3bf16a7","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":148,"box":{"x":69,"y":136,"width":445,"height":11}},{"id":"26409f9a-f3f1-4cdd-8eab-2ab1014e3cff","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":148,"box":{"x":102,"y":158,"width":405,"height":11}},{"id":"62c28a1e-c79f-40e1-9e39-a95f01ab23e6","block_type":"box","text":"Investor C Shares that are redeemed within one year of purchase may be subject to a 1.00% CDSC charged as a","page_number":148,"box":{"x":102,"y":181,"width":804,"height":11}},{"id":"09b83e10-4db3-4a41-b329-886cf3df68c6","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":148,"box":{"x":70,"y":196,"width":826,"height":11}},{"id":"16fd14ba-9f63-4cbf-9239-cfa55a973182","block_type":"box","text":"a redemption, the calculation will be determined in the manner that results in the lowest possible rate being charged.","page_number":148,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"7727fc6d-f7da-435b-ace1-9e13c8300c1c","block_type":"box","text":"The charge will be assessed on an amount equal to the lesser of the proceeds of redemption or the cost of the","page_number":148,"box":{"x":68,"y":226,"width":795,"height":11}},{"id":"1c1159ee-0771-4137-bcc7-7eb44c6e4ce4","block_type":"box","text":"shares being redeemed. Accordingly, no CDSC will be imposed on increases in NAV above the initial purchase price of","page_number":148,"box":{"x":69,"y":241,"width":840,"height":11}},{"id":"00cec582-b307-48c5-8200-3f6bcb6ee574","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":148,"box":{"x":70,"y":256,"width":804,"height":12}},{"id":"5f261eef-5688-430f-b7ad-e48ad422ee58","block_type":"box","text":"dividends. It will be assumed that the redemption is first of shares held for over one year or shares acquired","page_number":148,"box":{"x":69,"y":271,"width":772,"height":12}},{"id":"ff3e73c4-c34e-4d04-b9ac-e3e31367619e","block_type":"box","text":"pursuant to reinvestment of dividends and then of shares held longest during the one-year period. A transfer of","page_number":148,"box":{"x":70,"y":286,"width":790,"height":12}},{"id":"1da99ed8-f040-4999-a438-4b1c14b5c2ec","block_type":"box","text":"shares from a shareholder’s account to another account will be assumed to be made in the same order as a","page_number":148,"box":{"x":69,"y":302,"width":776,"height":9}},{"id":"3436eeed-ac23-4986-ae9d-722a3ff33f68","block_type":"box","text":"redemption.","page_number":148,"box":{"x":69,"y":317,"width":83,"height":11}},{"id":"6fa50b49-2422-4b8d-9f1e-1a47899b4ce3","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":148,"box":{"x":102,"y":339,"width":734,"height":12}},{"id":"f3a30bc2-255c-4545-af95-72deb86d1caa","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":148,"box":{"x":70,"y":355,"width":769,"height":11}},{"id":"67da7ff2-49e9-45a5-86be-e036308137c1","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":148,"box":{"x":102,"y":377,"width":586,"height":11}},{"id":"f312d482-9696-4879-8e61-9e72841e8e0a","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":148,"box":{"x":101,"y":400,"width":740,"height":11}},{"id":"082564d6-3daa-4238-bfcc-6b3d72480f09","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":148,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"e6412263-6bcc-4d12-a1cf-7c3d0183450e","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":148,"box":{"x":69,"y":430,"width":786,"height":11}},{"id":"1c9c794d-bd3c-457e-81cb-1f0a21e8a6f1","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":148,"box":{"x":70,"y":445,"width":797,"height":12}},{"id":"d7b9e6c4-afb2-42e7-b4b8-d84642c3678f","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":148,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"620fd15d-048c-4096-9423-fa3fd88c6b23","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":148,"box":{"x":69,"y":475,"width":747,"height":12}},{"id":"869e0018-771a-478b-aa4c-71756bdee753","block_type":"box","text":"shareholder’s death as long as the waiver request is made within one year of death or, if later, reasonably promptly","page_number":148,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"1ec8077e-343a-448d-971e-076403f9cf55","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":148,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"515589f8-e4c4-4760-9798-bffa1ed402fc","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":148,"box":{"x":69,"y":521,"width":806,"height":11}},{"id":"14f29e9b-2a43-4be7-b0dd-23d1982689bd","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":148,"box":{"x":69,"y":536,"width":786,"height":11}},{"id":"31448a89-1dac-4a6d-8244-2aaecc426436","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":148,"box":{"x":70,"y":551,"width":834,"height":11}},{"id":"0a7e2dfc-093e-46df-8029-8e7e6593aa49","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":148,"box":{"x":70,"y":566,"width":809,"height":11}},{"id":"906ed657-2c78-42d9-b91e-534d9e238043","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":148,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"8e3dad93-2b3e-4cb7-b624-a59e062d7355","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":148,"box":{"x":70,"y":596,"width":784,"height":12}},{"id":"14200365-dab4-47f1-b254-1eab2db3ba00","block_type":"box","text":"demonstrate hardship, in the absolute discretion of the Fund. In addition, no CDSC is charged on Investor C Shares","page_number":148,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"d5745127-0d75-4ba1-964d-14a0463eaf0a","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":148,"box":{"x":69,"y":627,"width":451,"height":11}},{"id":"d5b191a5-83cf-4257-88f9-15ae68ae6f55","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":148,"box":{"x":102,"y":649,"width":781,"height":12}},{"id":"4dc596a3-9397-48ae-acee-ccb37b6ca319","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":148,"box":{"x":70,"y":664,"width":813,"height":12}},{"id":"207d8e48-fdc0-4348-bf48-c994c47845fc","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":148,"box":{"x":69,"y":680,"width":462,"height":11}},{"id":"777b8ac0-9f22-4639-a5c7-a83804d84dfc","block_type":"box","text":"Class R Shares","page_number":148,"box":{"x":69,"y":710,"width":110,"height":9}},{"id":"378710a1-ee86-4072-9040-a1e03f97cac6","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":148,"box":{"x":102,"y":732,"width":775,"height":11}},{"id":"80860040-aac1-467a-96da-ca856d9d12e9","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":148,"box":{"x":69,"y":748,"width":799,"height":11}},{"id":"1c096e8e-f4fb-42a6-83dc-a35c20d9ac91","block_type":"box","text":"charge or a CDSC but are subject to an ongoing distribution fee of 0.25% per year and an ongoing service fee of","page_number":148,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"38d26729-68d0-4851-b61d-1844c9a65042","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":148,"box":{"x":69,"y":778,"width":772,"height":11}},{"id":"17ee7e1e-31c5-46e0-9d2e-5ebde599be0e","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":148,"box":{"x":69,"y":793,"width":836,"height":11}},{"id":"1c676242-603b-4fef-9336-29e2551ce7ab","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":148,"box":{"x":68,"y":808,"width":636,"height":11}},{"id":"aeb9e264-4266-4d1a-889c-c8a2085ef3c1","block_type":"box","text":"If Class R Shares are held over time, these fees may exceed the maximum sales charge that an investor would","page_number":148,"box":{"x":102,"y":831,"width":791,"height":11}},{"id":"2d40ee2c-8473-4b75-ac31-54e968dce393","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":148,"box":{"x":69,"y":846,"width":440,"height":11}},{"id":"5fae3fca-5d47-4801-a5f0-b57af5e7877a","block_type":"box","text":"II-108","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7143016d-3e8d-41ea-aa76-83605400b6a2","block_type":"box","text":"NM1026U-5982643-148/241","page_number":148,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"aa9c6a42-2619-4895-87a9-ada1c3af1552","block_type":"box","text":"Class K Shares","page_number":149,"box":{"x":69,"y":45,"width":109,"height":9}},{"id":"7bf59971-a4cf-4516-bf62-2cb226d44680","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":149,"box":{"x":102,"y":67,"width":797,"height":11}},{"id":"8c3483bc-f85c-470e-ad6b-ba2cb2c923bf","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":149,"box":{"x":69,"y":82,"width":772,"height":12}},{"id":"5ec97359-5fab-43e1-9dcc-20339c18f2f6","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":149,"box":{"x":69,"y":98,"width":827,"height":11}},{"id":"eef135a0-96ab-4593-9ab7-831489c9263d","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":149,"box":{"x":69,"y":113,"width":817,"height":11}},{"id":"829b3343-4892-4bbd-8495-8446a405c80d","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":149,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"cf7afd74-4099-4262-b5bb-16523121c485","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":149,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"2efc1bb5-9d59-4271-9b1f-76b966b4615a","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":149,"box":{"x":68,"y":158,"width":828,"height":11}},{"id":"4814b6b1-b947-4c68-9843-175f93d74c8a","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":149,"box":{"x":70,"y":173,"width":760,"height":11}},{"id":"12fc5cf6-701a-4573-bec4-45484abd4c54","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":149,"box":{"x":70,"y":188,"width":823,"height":12}},{"id":"f6edeb93-450e-4d24-a919-f8cbdc2395bb","block_type":"box","text":"banks that purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":149,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"a8bf9828-8930-4f4b-9e23-2253612a9d52","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":149,"box":{"x":70,"y":218,"width":814,"height":12}},{"id":"e5b82602-6a0f-4231-89fa-d27a006eff36","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":149,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"80b773ae-b30b-4f82-97c6-456463f4ec91","block_type":"box","text":"offer such shares to fee-based advisory clients through an omnibus account held at the Fund or (b) transacts in the","page_number":149,"box":{"x":69,"y":249,"width":823,"height":11}},{"id":"8e1552a6-0735-4659-9f02-4446fa371470","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":149,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"cdbeb685-d975-4630-8f75-e5c467d5aa4e","block_type":"box","text":"met the eligibility criteria for BlackRock Shares or Class K Shares prior to August 15, 2016 and have continually held","page_number":149,"box":{"x":69,"y":279,"width":833,"height":11}},{"id":"4a85eac9-4296-4f18-b543-54825eaf6536","block_type":"box","text":"Class K Shares of the Fund or the respective Predecessor Fund in the same account since August 15, 2016. The","page_number":149,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"67622f38-843c-47b7-87d2-8ac519f08b10","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":149,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"63944b67-6eed-47fc-b34d-19d34b6e2951","block_type":"box","text":"distribution and marketing agreement.","page_number":149,"box":{"x":69,"y":325,"width":270,"height":11}},{"id":"2a03477f-e141-4edd-aef9-6c3952dcc3eb","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":149,"box":{"x":102,"y":347,"width":734,"height":11}},{"id":"9314cc5e-2240-4ea8-8030-3e54f099798d","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":149,"box":{"x":70,"y":362,"width":817,"height":11}},{"id":"682e3110-25f7-48ae-8783-338208c626c6","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":149,"box":{"x":70,"y":377,"width":753,"height":12}},{"id":"fddcb5ff-d1d3-441e-bdc3-224a3fa8b98b","block_type":"box","text":"Class G Shares","page_number":149,"box":{"x":69,"y":408,"width":110,"height":8}},{"id":"0e213625-3f0d-491a-ab1a-b4899bac70bb","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":149,"box":{"x":102,"y":430,"width":804,"height":11}},{"id":"8d7e467c-bf3f-46c1-9b33-8802d377140f","block_type":"box","text":"are those where clients invest in the Fund through a single omnibus account in the name of a financial intermediary","page_number":149,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"ac68e52f-46e0-4686-9284-8d20dcb617e4","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":149,"box":{"x":68,"y":460,"width":836,"height":12}},{"id":"9f8098fb-74e8-48d8-a450-4aa010f75bf1","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":149,"box":{"x":69,"y":476,"width":803,"height":11}},{"id":"e521a5ff-f5ee-4ff2-879e-66f9a2e04619","block_type":"box","text":"eligibility requirements.","page_number":149,"box":{"x":69,"y":491,"width":164,"height":11}},{"id":"e1a9c3d1-43d0-47ca-88f8-86367ae64865","block_type":"box","text":"Service Shares","page_number":149,"box":{"x":68,"y":521,"width":109,"height":9}},{"id":"faf72195-37dd-4dd1-905d-9d829fd5cded","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":149,"box":{"x":102,"y":543,"width":788,"height":12}},{"id":"573d7255-ace0-405b-af8e-757212d4aa6e","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":149,"box":{"x":70,"y":559,"width":815,"height":11}},{"id":"5f4ebe19-58f3-4ad7-a6f2-8bc73d2e53dc","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":149,"box":{"x":69,"y":574,"width":693,"height":11}},{"id":"c61e307d-432f-4861-990b-b1504cd99b5e","block_type":"box","text":"®","page_number":149,"box":{"x":763,"y":574,"width":6,"height":5}},{"id":"d1bb1b26-5673-408c-9a79-6b3084d2a6f5","block_type":"box","text":"Fund in 1996; and","page_number":149,"box":{"x":775,"y":574,"width":130,"height":10}},{"id":"108069eb-59e9-4a50-81c7-935328d2626e","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":149,"box":{"x":69,"y":589,"width":287,"height":11}},{"id":"79690732-70b6-4862-9849-492150a90a9b","block_type":"box","text":"SM","page_number":149,"box":{"x":357,"y":589,"width":11,"height":5}},{"id":"37c15a74-f189-4d57-a1dd-6baf98c745fb","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":149,"box":{"x":374,"y":589,"width":534,"height":11}},{"id":"7fa06e91-68df-412a-b851-b3e2c12cdb40","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":149,"box":{"x":69,"y":604,"width":776,"height":11}},{"id":"31e3fbf6-17e7-4f24-a87f-b3d44294054d","block_type":"box","text":"BlackRock Shares","page_number":149,"box":{"x":69,"y":634,"width":133,"height":9}},{"id":"32f2bf82-c20a-45a4-b647-83e939504ba2","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":149,"box":{"x":102,"y":657,"width":760,"height":11}},{"id":"fb2f17e7-4243-4e6f-b05b-84877cec86d0","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":149,"box":{"x":69,"y":672,"width":813,"height":11}},{"id":"355e9898-8036-4b2a-a9c2-0f0b67e70961","block_type":"box","text":"fee-based programs.","page_number":149,"box":{"x":68,"y":687,"width":145,"height":11}},{"id":"334aa099-8413-46bd-9a00-cb50a9594638","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":149,"box":{"x":69,"y":718,"width":348,"height":11}},{"id":"385f1231-dd35-4310-bcd6-99170fa5d246","block_type":"box","text":"Each Fund has adopted a plan (each, a “Plan”) pursuant to Rule 12b-1 under the Investment Company Act with","page_number":149,"box":{"x":102,"y":740,"width":790,"height":11}},{"id":"2b0b9d44-14fc-4ffd-803f-06c297a9756c","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":149,"box":{"x":69,"y":755,"width":761,"height":11}},{"id":"97f8beab-3065-4db7-bdad-5a1b54a7b929","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":149,"box":{"x":69,"y":770,"width":541,"height":12}},{"id":"76b74039-1abb-43c2-954a-b54afb1cab40","block_type":"box","text":"Pursuant to the Plans, a Fund may pay BRIL and/or BlackRock, or any other affiliate or significant shareholder of","page_number":149,"box":{"x":102,"y":793,"width":803,"height":11}},{"id":"7e315cde-3f12-48ba-9456-1d713592c43a","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":149,"box":{"x":70,"y":808,"width":783,"height":11}},{"id":"22a8a7f6-2a3d-44e5-8d69-93bd2a4680dd","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":149,"box":{"x":70,"y":823,"width":809,"height":11}},{"id":"244b9b52-0206-4339-831b-a31550059358","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":149,"box":{"x":69,"y":838,"width":360,"height":11}},{"id":"9c2ea4ed-1876-49e6-bdfe-f9959db1de2d","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":149,"box":{"x":102,"y":861,"width":770,"height":11}},{"id":"b30f14e5-f71a-4a05-a4dd-05936e451911","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":149,"box":{"x":69,"y":876,"width":824,"height":11}},{"id":"63d1851c-db3a-45f8-bc50-1ee6e894b79f","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":149,"box":{"x":69,"y":891,"width":812,"height":12}},{"id":"3a9c0a37-0555-4de3-919b-f3266f9dce67","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":149,"box":{"x":68,"y":906,"width":355,"height":11}},{"id":"a058c4a0-adae-4c35-9d74-da29e9a9fecf","block_type":"box","text":"II-109","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c49b05da-ffe3-44ed-901a-a51637a7bba1","block_type":"box","text":"NM1026U-5982643-149/241","page_number":149,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"918bd5aa-d346-4ff3-bc43-cf39a3fe1ca8","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":150,"box":{"x":102,"y":45,"width":727,"height":11}},{"id":"5ea3747e-5cdc-4618-8bd3-b9237014ff63","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":150,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"c0a814c6-d2e8-4db4-afe4-6c561fe2a63f","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":150,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"d015618e-61e3-4adc-98df-73d1640ea6d6","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":150,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"dcf36e74-26ec-4ced-8738-6603a836295c","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":150,"box":{"x":68,"y":105,"width":786,"height":11}},{"id":"c4396775-2714-4bf1-9e5f-05340a77d583","block_type":"box","text":"Service and Class R Shares of a Fund. Such services are intended to supplement the services provided by the","page_number":150,"box":{"x":69,"y":120,"width":789,"height":11}},{"id":"1ec6d449-f2c5-4ad8-b944-3948a9f99590","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":150,"box":{"x":70,"y":135,"width":562,"height":12}},{"id":"3a808726-042b-4725-9eb2-47bd379b5f73","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":150,"box":{"x":101,"y":158,"width":798,"height":11}},{"id":"cf183f56-2db5-4e8e-b384-d23dbdc1ad2e","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":150,"box":{"x":69,"y":173,"width":808,"height":11}},{"id":"129c0916-568e-465a-8200-0d0325907eaa","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":150,"box":{"x":70,"y":188,"width":776,"height":12}},{"id":"c1267db3-760a-412d-b1b6-347eda375e54","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":150,"box":{"x":70,"y":203,"width":835,"height":12}},{"id":"118c49d3-04ef-48b6-9f54-9acb3a3804f3","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":150,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"daf6c854-ec09-447d-b50e-55bf3321dec1","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":150,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"c5af8e06-aca1-4e5c-993b-3b6f61ca900c","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":150,"box":{"x":68,"y":249,"width":501,"height":11}},{"id":"7bb5d825-a767-46b9-b38a-76877ee00e0b","block_type":"box","text":"Payments under the Plans are based on a percentage of average daily net assets attributable to the shares in","page_number":150,"box":{"x":102,"y":271,"width":783,"height":12}},{"id":"dd71db10-dd5d-4c19-9efb-f6515d162a51","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":150,"box":{"x":68,"y":286,"width":810,"height":12}},{"id":"a7df76e8-2239-4301-8aa8-fb3de78fb014","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":150,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"347b0ca3-d046-4a56-89b6-9cbd2b30ac10","block_type":"box","text":"with respect to the related class. Information with respect to the payments under the Plans and expenses incurred in","page_number":150,"box":{"x":68,"y":317,"width":836,"height":11}},{"id":"7ec347e2-b1ed-4798-9511-59a438940344","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":150,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"381fddf4-3cf9-4b57-9e71-aca87b0ff298","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":150,"box":{"x":69,"y":347,"width":832,"height":11}},{"id":"eb33b103-0e5d-45b5-bd9a-605c04b57184","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":150,"box":{"x":68,"y":362,"width":803,"height":11}},{"id":"1b58f4f5-2a72-4be8-a7e5-0db0cebf92ad","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":150,"box":{"x":68,"y":377,"width":788,"height":12}},{"id":"de864025-a37e-4a1c-9e78-f715d93b26bd","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":150,"box":{"x":69,"y":393,"width":798,"height":11}},{"id":"f180d2f6-bcf7-4c12-aba9-d0499b406784","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":150,"box":{"x":69,"y":407,"width":755,"height":12}},{"id":"1c621130-7a8e-4a4c-814b-af74bf3cf00d","block_type":"box","text":"compensation for selling different classes of shares.","page_number":150,"box":{"x":69,"y":423,"width":375,"height":11}},{"id":"cdb5f75f-1d09-4841-ae82-d41c43cf1ef4","block_type":"box","text":"Each Plan is subject to the provisions of Rule 12b-1 under the Investment Company Act. In their consideration of","page_number":150,"box":{"x":102,"y":445,"width":803,"height":11}},{"id":"25f61e2f-dbce-4916-8f8f-a8bade96c8b7","block_type":"box","text":"a Plan, the Directors must consider all factors they deem relevant, including information as to the benefits of the Plan","page_number":150,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"0b03c3a4-f54f-43fc-976d-a9adafb777ba","block_type":"box","text":"to the Fund and the related class of shareholders. In approving a Plan in accordance with Rule 12b-1, the non","page_number":150,"box":{"x":68,"y":475,"width":788,"height":12}},{"id":"b7d694b5-6f73-4f60-8ad8-6436849a0bae","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":150,"box":{"x":70,"y":491,"width":818,"height":9}},{"id":"ba2a4a80-71e7-4ed1-983b-ffe914e703aa","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":150,"box":{"x":69,"y":506,"width":824,"height":11}},{"id":"b97cdac4-d168-489d-ae03-ca2306abf2b0","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":150,"box":{"x":69,"y":521,"width":821,"height":11}},{"id":"b761747a-28b2-412f-8ca4-7fb2838ae3f2","block_type":"box","text":"(ii) the Plan will continue in effect for so long as its continuance is approved at least annually by the Board of","page_number":150,"box":{"x":69,"y":536,"width":778,"height":11}},{"id":"5e536911-aa92-45fa-85eb-38808f17d36f","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":150,"box":{"x":70,"y":551,"width":773,"height":11}},{"id":"850013d9-8120-46c6-8a0a-ab2707fd494b","block_type":"box","text":"Company Act) and who have no direct or indirect financial interest in the operation of the Plan or any agreement","page_number":150,"box":{"x":69,"y":566,"width":796,"height":11}},{"id":"11a04b8c-2672-422e-9dcb-2519f1a40392","block_type":"box","text":"entered into in connection with the Plan (the “12b-1 Directors”), acting in person at a meeting called for said purpose","page_number":150,"box":{"x":69,"y":581,"width":837,"height":12}},{"id":"91267731-9318-4324-bcac-d0b9b0c7d4bd","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":150,"box":{"x":70,"y":597,"width":801,"height":11}},{"id":"29d8eb26-c9fb-4ff7-8a8c-15281654617c","block_type":"box","text":"approved by the Board of Directors, including the 12b-1 Directors, acting in person at a meeting called for said","page_number":150,"box":{"x":69,"y":612,"width":787,"height":11}},{"id":"ff66c951-7099-46ec-8495-f87fc60c3ba3","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":150,"box":{"x":70,"y":627,"width":802,"height":11}},{"id":"d736b623-113a-4d92-a3e3-075a6e4c3e86","block_type":"box","text":"services pursuant to the Plan shall be effective only upon approval by a vote of a majority of the outstanding shares","page_number":150,"box":{"x":69,"y":642,"width":826,"height":11}},{"id":"e98cf8dc-3167-4d72-b997-71e23055ca9b","block_type":"box","text":"of such class and by a majority of the Board of Directors, including the 12b-1 Directors, acting in person at a meeting","page_number":150,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"8408e416-6f0c-4327-8143-9080670604ca","block_type":"box","text":"called for said purpose; and (v) while the Plan remains in effect, the selection and nomination of the Fund’s Directors","page_number":150,"box":{"x":69,"y":672,"width":836,"height":11}},{"id":"8e11975a-18c2-4124-a6ab-361608c76e5d","block_type":"box","text":"who are not “interested persons” of the Fund shall be committed to the discretion of the Fund’s non-interested","page_number":150,"box":{"x":68,"y":687,"width":792,"height":11}},{"id":"400cc92f-dc26-4515-bfd6-4bfaadad2ac2","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":150,"box":{"x":70,"y":702,"width":831,"height":11}},{"id":"6d32fdd5-996a-481b-b0df-19e412e2b533","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":150,"box":{"x":69,"y":717,"width":807,"height":12}},{"id":"c8e34128-252e-40b6-b60a-26c991d4b58e","block_type":"box","text":"easily accessible place.","page_number":150,"box":{"x":69,"y":733,"width":167,"height":11}},{"id":"6d3308c1-be46-4762-8f4c-82827136fda5","block_type":"box","text":"Each Plan is terminable as to any class of shares without penalty at any time by a vote of a majority of the 12b-1","page_number":150,"box":{"x":102,"y":755,"width":804,"height":11}},{"id":"4cbdcf2b-ff84-4cf5-964b-5351d077ddf7","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":150,"box":{"x":70,"y":770,"width":542,"height":11}},{"id":"11babe77-304b-4cd3-8e0b-37d94c219c56","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":150,"box":{"x":102,"y":793,"width":734,"height":11}},{"id":"1e2a7054-1aec-49d5-a573-6db3bc22cc23","block_type":"box","text":"information relating to the fees paid by your Fund to the Distributor under each Plan during the Fund’s most recent","page_number":150,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"d33583fe-1d22-4544-982c-0cf9a29d4c07","block_type":"box","text":"fiscal year.","page_number":150,"box":{"x":68,"y":823,"width":75,"height":11}},{"id":"60b4bd1d-d0e2-431e-be44-2a62cec1d716","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":150,"box":{"x":69,"y":854,"width":396,"height":11}},{"id":"d432c862-2c46-40a1-a8a7-176397bc2eb9","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":150,"box":{"x":101,"y":876,"width":777,"height":11}},{"id":"c9ad7ac4-1eb1-4e79-add7-cc5d4718b2b4","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":150,"box":{"x":70,"y":891,"width":835,"height":12}},{"id":"722b0991-11ed-4900-8020-ff39cd8aae5b","block_type":"box","text":"the distribution fee and the CDSC borne by the Investor C Shares. This limitation does not apply to the shareholder","page_number":150,"box":{"x":68,"y":906,"width":822,"height":12}},{"id":"4ea57d27-e2a0-4ae1-b645-4ae67fdc1f49","block_type":"box","text":"II-110","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"81c67d25-206e-4ce9-98c1-595a77c39c17","block_type":"box","text":"NM1026U-5982643-150/241","page_number":150,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"8443728c-9016-4f53-b94c-c99fa0f79765","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":151,"box":{"x":69,"y":45,"width":778,"height":11}},{"id":"150730ed-56cd-410d-b0fb-50ebfbd08f53","block_type":"box","text":"distribution fee payments and CDSCs payable by a Fund to (1) 6.25% of eligible gross sales of Investor C and Class R","page_number":151,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"ffdb3519-ecd5-41d5-9194-a192817f0258","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":151,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"d7ab0e73-d5d6-426e-ae5e-124f64b675cf","block_type":"box","text":"(2) interest on the unpaid balance for the respective class, computed separately, at the prime rate plus 1% (the","page_number":151,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"5a0593fb-6ef6-49ce-a064-cc11f2c5021f","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":151,"box":{"x":69,"y":105,"width":839,"height":11}},{"id":"a6663904-622f-4966-9818-6844bcf952be","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":151,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"ee25c429-508f-4cfd-9068-94ca41d52e82","block_type":"box","text":"for comparative information as of your Fund’s most recent fiscal year end with respect to, if applicable, the Investor C","page_number":151,"box":{"x":68,"y":135,"width":839,"height":11}},{"id":"8a961d3e-b940-4909-b0b0-5553cbbaedbf","block_type":"box","text":"and Class R Shares of your Fund.","page_number":151,"box":{"x":69,"y":150,"width":236,"height":12}},{"id":"3178c14e-6ef9-4158-a7a6-c26650c94814","block_type":"box","text":"Other Payments by the Fund","page_number":151,"box":{"x":69,"y":181,"width":206,"height":11}},{"id":"fd85992d-1af3-440a-95a4-005cca7c59bb","block_type":"box","text":"In addition to shareholder servicing fees that a Fund may pay to a Service Organization pursuant to the Plan and","page_number":151,"box":{"x":102,"y":203,"width":800,"height":12}},{"id":"fc018022-4f07-4414-8235-4895c2d29521","block_type":"box","text":"fees the Fund pays to its Transfer Agent, BlackRock, on behalf of a Fund, may enter into non-Plan agreements with","page_number":151,"box":{"x":68,"y":218,"width":816,"height":12}},{"id":"04806218-f5a6-4cae-8b46-56b16f8f13f0","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":151,"box":{"x":69,"y":234,"width":794,"height":11}},{"id":"4db83dc7-e700-4130-b17e-b1762127ece1","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":151,"box":{"x":69,"y":249,"width":792,"height":11}},{"id":"b0416086-5a96-4057-807e-8691bf56b91f","block_type":"box","text":"generally based on either (1) a percentage of the average daily net assets of Fund shareholders serviced by a Service","page_number":151,"box":{"x":68,"y":264,"width":841,"height":11}},{"id":"eabe7584-23e1-44ea-8e0b-c2e8572cc37e","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":151,"box":{"x":69,"y":279,"width":831,"height":11}},{"id":"7126c5bd-070f-4e9a-b1a8-3066d205b846","block_type":"box","text":"of these payments may be substantial.","page_number":151,"box":{"x":69,"y":294,"width":276,"height":11}},{"id":"c0d95e5a-20da-4a8f-be80-217f7aff3052","block_type":"box","text":"Additional Payments by BlackRock","page_number":151,"box":{"x":68,"y":324,"width":256,"height":11}},{"id":"c95236ff-f166-4091-8df2-80da127ca8cc","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":151,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"0f59313a-a9da-47e2-971c-9715b2823365","block_type":"box","text":"may compensate Service Organizations for the sale and distribution of shares of a Fund, for services to a Fund and","page_number":151,"box":{"x":69,"y":362,"width":823,"height":11}},{"id":"78a6d2d7-1a9b-4d35-bb90-0c64e5215b9c","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":151,"box":{"x":70,"y":377,"width":768,"height":12}},{"id":"147f3be5-98b0-44f4-9985-9c544ac87c34","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":151,"box":{"x":69,"y":392,"width":830,"height":12}},{"id":"6ec0dad1-4ecf-439b-bc30-9c5554f1e241","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":151,"box":{"x":69,"y":407,"width":599,"height":12}},{"id":"e35e57d9-8048-49e4-a562-4616a8c2eeb6","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":151,"box":{"x":101,"y":430,"width":776,"height":11}},{"id":"ba4cc236-f695-4a23-b0d1-7e1fa5710171","block_type":"box","text":"paid by a Fund to BlackRock for various services, such as investment advisory services). These payments are not an","page_number":151,"box":{"x":70,"y":445,"width":832,"height":11}},{"id":"7e00ab1d-dea7-4191-b783-cdec4efd7d2b","block_type":"box","text":"additional charge to a Fund or its shareholders and do not change the price paid by shareholders for the purchase of","page_number":151,"box":{"x":69,"y":460,"width":833,"height":12}},{"id":"f8101ec4-689d-4f36-8504-41db6a9bbde0","block_type":"box","text":"a Fund’s shares or the amount a Fund receives as proceeds from such purchases. Additional Payments made to","page_number":151,"box":{"x":69,"y":475,"width":802,"height":12}},{"id":"4ffc4c4e-2f44-474b-8e02-f2e8d8f58ad8","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":151,"box":{"x":69,"y":491,"width":802,"height":11}},{"id":"904fdbb4-6914-4050-b069-9e52860b9f37","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":151,"box":{"x":70,"y":506,"width":796,"height":11}},{"id":"bdb33833-202e-4806-ba41-71a68e910122","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":151,"box":{"x":69,"y":521,"width":836,"height":11}},{"id":"aa8e9a4d-74f3-441f-980c-fc5ae29ae946","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":151,"box":{"x":69,"y":536,"width":828,"height":11}},{"id":"0e08311d-5980-4f41-b9f8-cba2aa1485c1","block_type":"box","text":"such payments in connection with the sale and distribution of Fund shares, are required to be disclosed. While FINRA","page_number":151,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"a10b9af0-9a3a-4171-acaf-e6a3ed2f729a","block_type":"box","text":"regulations limit the sales charges that shareholders may bear, there are no limits with regard to the amounts that","page_number":151,"box":{"x":69,"y":566,"width":818,"height":11}},{"id":"dd5ade84-9bf6-4c48-accd-8a9df9ec4ab5","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":151,"box":{"x":70,"y":581,"width":294,"height":11}},{"id":"12f2751b-7852-4385-85a4-49a10f46dd9d","block_type":"box","text":"Additional Payments may be made as a fixed dollar amount, may be based on the number of Customer accounts","page_number":151,"box":{"x":101,"y":604,"width":803,"height":11}},{"id":"1557f2bb-949b-4f77-a5db-ff1f192dfc25","block_type":"box","text":"maintained by a Service Organization, may be based on a percentage of the value of shares sold to, or held by,","page_number":151,"box":{"x":69,"y":619,"width":792,"height":11}},{"id":"32e669c3-c67a-4458-9f1f-b28f50832d2f","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":151,"box":{"x":69,"y":634,"width":623,"height":12}},{"id":"7fc1ba9f-0d7d-4745-addd-230d39e4dae5","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":151,"box":{"x":102,"y":657,"width":765,"height":11}},{"id":"a2287c57-316e-4ee6-9135-4d0fbfe4c422","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":151,"box":{"x":69,"y":672,"width":841,"height":11}},{"id":"50b3eade-d8cf-43db-bb51-99a28f0db9e1","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":151,"box":{"x":68,"y":687,"width":806,"height":11}},{"id":"6fab7796-00ce-491e-ace0-25fbcb93f910","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":151,"box":{"x":69,"y":702,"width":776,"height":11}},{"id":"7d56ff4d-8c49-4054-9964-b232e696484f","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":151,"box":{"x":70,"y":717,"width":802,"height":12}},{"id":"7ec3d4f4-c9df-440e-b879-93ef12f52085","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":151,"box":{"x":68,"y":732,"width":811,"height":12}},{"id":"9f18bef6-bc09-4a9b-bcef-675255fbe209","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":151,"box":{"x":69,"y":748,"width":538,"height":11}},{"id":"ab4adbd2-43fe-4494-8ffa-5ccc8efa173d","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":151,"box":{"x":101,"y":770,"width":795,"height":12}},{"id":"9bb86201-bc96-4b73-b3c9-72512c63a640","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":151,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"c37388eb-7ca2-46f7-b04a-afa848a516ee","block_type":"box","text":"same Service Organization, or one or more of its affiliates, may receive payments under more than one category of","page_number":151,"box":{"x":69,"y":801,"width":823,"height":11}},{"id":"5f0d5768-fe92-4671-b5f0-9ca370645e06","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":151,"box":{"x":68,"y":816,"width":819,"height":11}},{"id":"e754790c-da67-4efc-93ee-d1b9bdcd06c5","block_type":"box","text":"Funds.","page_number":151,"box":{"x":70,"y":831,"width":44,"height":9}},{"id":"4cac41e3-2cef-4930-a6bf-255dd5af2ade","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":151,"box":{"x":101,"y":854,"width":270,"height":11}},{"id":"ffe89b13-6b6f-4235-82af-6397d4b2f22f","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":151,"box":{"x":101,"y":876,"width":740,"height":11}},{"id":"f915f0e2-e27e-4f21-a99c-afb10ea6c26f","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":151,"box":{"x":70,"y":891,"width":764,"height":12}},{"id":"bf023a7d-3e52-469c-a069-fe401459204f","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":151,"box":{"x":69,"y":906,"width":811,"height":12}},{"id":"853a6728-ddd5-49b7-86f8-746b7b9449f6","block_type":"box","text":"II-111","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cc4e2a03-fe5f-452c-a86d-099b9b3abfb9","block_type":"box","text":"NM1026U-5982643-151/241","page_number":151,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"ea720488-7fda-41fb-8264-97681d4a570b","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":152,"box":{"x":69,"y":45,"width":742,"height":11}},{"id":"52021a15-87f6-4ba3-b6f7-0b1bc2c3599c","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":152,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"667d147b-d480-4307-8ba4-53b0c0025dd9","block_type":"box","text":"the Fund on the Service Organization’s platform(s); “listing” fees for the placing of the Fund on a dealer’s list (which","page_number":152,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"85a50569-32f9-440c-92d9-c20dee620000","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":152,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"9fdc0f63-f80e-4dbe-b1d3-f7aeff07688a","block_type":"box","text":"programs from time to time; fees for providing assistance in promoting the sale of the Fund’s shares (which may","page_number":152,"box":{"x":70,"y":105,"width":803,"height":11}},{"id":"1d7c1eff-95b1-4b60-81d0-5c4670c2a552","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":152,"box":{"x":70,"y":120,"width":783,"height":12}},{"id":"8a9b43c4-a75a-48e8-a6c1-51d5ce81276e","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":152,"box":{"x":69,"y":135,"width":823,"height":11}},{"id":"aa303457-13a5-4502-a843-62724fbfcabb","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":152,"box":{"x":68,"y":150,"width":805,"height":12}},{"id":"bc483024-ca2e-421b-8575-cb83d1eed129","block_type":"box","text":"normally will not exceed the sum of (a) 0.25% of such year’s Fund sales by that Service Organization, and (b) 0.21%","page_number":152,"box":{"x":69,"y":166,"width":828,"height":11}},{"id":"43f64334-0ea6-4ec7-b2d3-b4615e032859","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":152,"box":{"x":69,"y":181,"width":523,"height":11}},{"id":"4898a947-cac7-4896-bee7-9a4e02f4912b","block_type":"box","text":"B. Shareholder Services","page_number":152,"box":{"x":102,"y":203,"width":172,"height":9}},{"id":"72be0f6d-2ee0-4d7d-b2e3-a30d34edc3c6","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":152,"box":{"x":102,"y":226,"width":754,"height":11}},{"id":"8a5e5848-8fd7-41ad-8e22-219e654648d8","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":152,"box":{"x":69,"y":241,"width":830,"height":11}},{"id":"d07a83e0-a85c-4792-b0ac-cbed7c05cabe","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":152,"box":{"x":69,"y":256,"width":823,"height":12}},{"id":"9fbbee8f-50ef-4184-a6fc-97edd380a807","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":152,"box":{"x":69,"y":272,"width":839,"height":11}},{"id":"db69f1fe-380e-4158-9813-444a38d9e02e","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":152,"box":{"x":69,"y":286,"width":796,"height":12}},{"id":"69e505d1-ab9d-4491-aa8f-5976c3dbb65c","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":152,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"051e2da3-af95-4553-831b-4e9b063fe6ae","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":152,"box":{"x":68,"y":317,"width":828,"height":11}},{"id":"2b446ee0-1fb6-4274-8ea0-04073057e405","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":152,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"a7657564-0ff5-46ab-9ba6-15489498fbf0","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":152,"box":{"x":70,"y":347,"width":328,"height":11}},{"id":"51e6b698-dfca-4333-babd-c01a1deac38a","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":152,"box":{"x":102,"y":370,"width":299,"height":11}},{"id":"3ce6dc4e-4795-4a0f-9454-3388343ba4a4","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":152,"box":{"x":102,"y":392,"width":805,"height":12}},{"id":"dbc92546-6aea-4627-8d20-deb901d570ad","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":152,"box":{"x":69,"y":407,"width":788,"height":12}},{"id":"bd56707d-5d59-4e50-b715-61a89b23a531","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":152,"box":{"x":69,"y":423,"width":821,"height":11}},{"id":"7a49d65b-d186-47f5-829c-567337a25c48","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":152,"box":{"x":102,"y":445,"width":397,"height":12}},{"id":"b969958b-7b2b-4ed2-a461-f41d5159ec1b","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":152,"box":{"x":101,"y":468,"width":774,"height":11}},{"id":"328c8f83-3365-49eb-b983-7c305c79f369","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":152,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"ef447c4e-3f41-40b1-8619-a964d995116b","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":152,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"c690daa5-8383-476b-868b-0506b7837866","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":152,"box":{"x":69,"y":513,"width":791,"height":12}},{"id":"9b666418-2dd2-4d7e-9fb4-7b8f7762870d","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":152,"box":{"x":70,"y":528,"width":523,"height":12}},{"id":"3ec8a1b2-6e56-4b38-aff1-115de694bd15","block_type":"box","text":"&Par tners","page_number":152,"box":{"x":69,"y":560,"width":71,"height":9}},{"id":"5e604835-42e4-4cbe-967e-a55d88ddcaf3","block_type":"box","text":"AccuTech Systems Corporation","page_number":152,"box":{"x":68,"y":580,"width":219,"height":11}},{"id":"64d6e017-6c14-4984-a768-8e6f8a86926d","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":152,"box":{"x":68,"y":600,"width":164,"height":11}},{"id":"f48b2f2f-4b2c-4c73-9232-14f1829475ae","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":152,"box":{"x":68,"y":620,"width":207,"height":12}},{"id":"a32caa00-1df4-4d50-b91d-9e1439f82b60","block_type":"box","text":"Advisor Group, Inc.","page_number":152,"box":{"x":68,"y":641,"width":133,"height":11}},{"id":"080bd664-71a9-4093-83bf-fedb5884a78c","block_type":"box","text":"AE Wealth Management, LLC","page_number":152,"box":{"x":68,"y":661,"width":205,"height":11}},{"id":"72e1d440-7ae6-4947-862e-59dfaf203d97","block_type":"box","text":"Alight Solutions LLC","page_number":152,"box":{"x":68,"y":681,"width":142,"height":11}},{"id":"c106c881-137f-43b9-a8c9-4f82568d4426","block_type":"box","text":"Allianz Life Financial Services, LLC","page_number":152,"box":{"x":68,"y":701,"width":246,"height":11}},{"id":"a02669aa-82e4-4be3-b988-19c392bb4f05","block_type":"box","text":"Allianz Life Insurance Company of New York","page_number":152,"box":{"x":68,"y":721,"width":310,"height":11}},{"id":"0b50166f-eb12-47b4-850e-bc4fde9c757d","block_type":"box","text":"Allianz Life Insurance Company of Nor th America","page_number":152,"box":{"x":68,"y":741,"width":346,"height":11}},{"id":"be6d6648-f288-4e1e-9503-a5e6b68e157c","block_type":"box","text":"Altruist Financial LLC","page_number":152,"box":{"x":68,"y":762,"width":149,"height":8}},{"id":"25b368d8-5fd3-4ed3-bb18-bf91192929c5","block_type":"box","text":"American Enterprise Investment Services, Inc.","page_number":152,"box":{"x":68,"y":782,"width":328,"height":11}},{"id":"2e5f0e56-403a-4fce-841a-5f97bf433be8","block_type":"box","text":"American General Life Insurance Company","page_number":152,"box":{"x":68,"y":802,"width":302,"height":11}},{"id":"e1a4bc1d-2e79-48d2-8c2d-eb3a22a90d45","block_type":"box","text":"American United Life Insurance Company","page_number":152,"box":{"x":68,"y":822,"width":293,"height":11}},{"id":"b953723a-f919-4e34-9337-8df089839012","block_type":"box","text":"Annuity Investors Life Insurance Company","page_number":152,"box":{"x":68,"y":842,"width":298,"height":11}},{"id":"1ddae171-a703-4941-8990-444bb971491b","block_type":"box","text":"Argent Institutional Trust Company","page_number":152,"box":{"x":68,"y":862,"width":246,"height":12}},{"id":"c0001fe6-4620-460c-8d7e-2dbca0b35c27","block_type":"box","text":"Ascensus Broker Dealer Services, Inc.","page_number":152,"box":{"x":68,"y":883,"width":272,"height":10}},{"id":"dce3ea3c-87f3-479f-8fb0-dd97a94828dc","block_type":"box","text":"Ascensus, Inc.","page_number":152,"box":{"x":68,"y":903,"width":103,"height":10}},{"id":"80d13855-d5e5-4836-8323-c24e819a56bb","block_type":"box","text":"Atomic Brokerage LLC","page_number":152,"box":{"x":509,"y":560,"width":155,"height":11}},{"id":"b8dd2b66-2d10-4f2c-b20c-51bd4c7b305c","block_type":"box","text":"Avantax Investment Services, LLC","page_number":152,"box":{"x":509,"y":580,"width":240,"height":11}},{"id":"db99d6a6-0912-49d2-a746-255664ff8e49","block_type":"box","text":"Bancroft Capital LLC","page_number":152,"box":{"x":510,"y":600,"width":143,"height":11}},{"id":"3106b5a7-7a4f-4b42-b987-9690572ae6b0","block_type":"box","text":"Bank of America, N.A.","page_number":152,"box":{"x":510,"y":620,"width":153,"height":11}},{"id":"a8f89c36-0570-4e55-b01f-5c86a6ee34d6","block_type":"box","text":"Bank of New York Mellon","page_number":152,"box":{"x":510,"y":641,"width":174,"height":9}},{"id":"70b82e4c-7050-417e-806a-c0524951e0f0","block_type":"box","text":"Barclays Capital Inc.","page_number":152,"box":{"x":510,"y":661,"width":142,"height":11}},{"id":"15a0d477-5fd9-45ee-a00d-915050b138ad","block_type":"box","text":"Benefit Plans Administrative Services, Inc.","page_number":152,"box":{"x":510,"y":681,"width":299,"height":10}},{"id":"9865bd39-111d-467a-8027-319493388ce1","block_type":"box","text":"Benefit Trust Company","page_number":152,"box":{"x":510,"y":701,"width":160,"height":11}},{"id":"8f54305c-e195-44a8-bff5-124b704583af","block_type":"box","text":"Beta Capital Securities LLC","page_number":152,"box":{"x":510,"y":721,"width":192,"height":11}},{"id":"678fe250-fd19-4e8a-83c7-0ab1f31dcd7e","block_type":"box","text":"bfinance US Ltd.","page_number":152,"box":{"x":509,"y":741,"width":116,"height":9}},{"id":"34c155b4-cefa-48cf-9113-7a212e4b864f","block_type":"box","text":"BlackRock Advisors, LLC","page_number":152,"box":{"x":510,"y":762,"width":173,"height":10}},{"id":"ca08dea2-98e1-465c-8994-55d7ea78c73c","block_type":"box","text":"BMO Capital Markets Corp.","page_number":152,"box":{"x":510,"y":782,"width":191,"height":11}},{"id":"b711d40a-2566-4448-863f-d095190cbeff","block_type":"box","text":"BNP Paribas","page_number":152,"box":{"x":510,"y":802,"width":86,"height":9}},{"id":"521f793b-b2c4-4e22-adf3-0687d44a3829","block_type":"box","text":"BNP Paribas Investment Par tners UK Limited","page_number":152,"box":{"x":510,"y":822,"width":318,"height":9}},{"id":"92442f8b-673c-4415-95ff-4066d3404de3","block_type":"box","text":"BNY Mellon, N.A.","page_number":152,"box":{"x":510,"y":842,"width":119,"height":11}},{"id":"990883dc-bfac-490d-8598-92c8d40e9b27","block_type":"box","text":"BofA Securities, Inc.","page_number":152,"box":{"x":510,"y":862,"width":141,"height":11}},{"id":"6155dc69-1ee1-421d-8be0-9e48f536aac1","block_type":"box","text":"BOKF, N.A.","page_number":152,"box":{"x":510,"y":883,"width":75,"height":10}},{"id":"919295d6-a438-4d83-b35a-6b85e0da1f87","block_type":"box","text":"Brighthouse Life Insurance Company","page_number":152,"box":{"x":510,"y":903,"width":259,"height":11}},{"id":"2792ef11-333c-438a-8f1f-64785835f53f","block_type":"box","text":"II-112","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5f71184a-ebbe-48c0-8ae5-08f1a5fd9d18","block_type":"box","text":"NM1026U-5982643-152/241","page_number":152,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"c3e7eaf5-9015-4182-a66e-50e23ab232ff","block_type":"box","text":"Brighthouse Life Insurance Company of NY","page_number":153,"box":{"x":70,"y":45,"width":302,"height":11}},{"id":"fdda38d8-3a1c-4d94-940f-77ee5d4883e5","block_type":"box","text":"Broadridge Business Process Outsourcing, LLC","page_number":153,"box":{"x":70,"y":65,"width":333,"height":11}},{"id":"9097e293-c6db-43f4-ac29-4fcce279cd02","block_type":"box","text":"Brown Brothers Harriman & Co.","page_number":153,"box":{"x":70,"y":85,"width":222,"height":9}},{"id":"73bc5302-00e5-4411-8aa7-00ef831cf34f","block_type":"box","text":"Cabrera Capital Markets, LLC","page_number":153,"box":{"x":69,"y":105,"width":208,"height":11}},{"id":"03dd465c-55a1-461e-89ae-3b6c6ff0c484","block_type":"box","text":"Capital One, N.A.","page_number":153,"box":{"x":69,"y":125,"width":120,"height":11}},{"id":"e3cc0ad4-76d4-40cb-b328-bc8d1ee1c729","block_type":"box","text":"Cetera Advisor Networks LLC","page_number":153,"box":{"x":69,"y":146,"width":204,"height":8}},{"id":"f734572c-5b3a-458f-9bef-3e9c7793bf0f","block_type":"box","text":"Cetera Advisors LLC","page_number":153,"box":{"x":69,"y":166,"width":142,"height":9}},{"id":"12c034e9-2e92-4554-8c04-c5934dfa1e92","block_type":"box","text":"Cetera Financial Group","page_number":153,"box":{"x":69,"y":186,"width":161,"height":11}},{"id":"3bd30322-42b8-4a45-9c76-7af92b684074","block_type":"box","text":"Cetera Financial Specialists LLC","page_number":153,"box":{"x":69,"y":206,"width":227,"height":11}},{"id":"6ddda388-8ddb-4cd6-9cbd-3cac8cda6728","block_type":"box","text":"Cetera Investment Services LLC","page_number":153,"box":{"x":69,"y":226,"width":227,"height":9}},{"id":"be0d9249-7c47-409e-9eac-91ad5a97581b","block_type":"box","text":"CF Secured, LLC","page_number":153,"box":{"x":69,"y":246,"width":116,"height":11}},{"id":"cd8cb53e-85ec-46d2-bb01-d7fa829900a7","block_type":"box","text":"Charles Schwab & Co., Inc.","page_number":153,"box":{"x":69,"y":266,"width":192,"height":11}},{"id":"0db6079b-20a2-48dc-93ec-955995f88413","block_type":"box","text":"Charles Schwab Trust Bank","page_number":153,"box":{"x":69,"y":287,"width":195,"height":9}},{"id":"f54eaa54-acf1-4035-bf9c-75a16234b5c3","block_type":"box","text":"Chicago Mercantile Exchange Inc.","page_number":153,"box":{"x":69,"y":307,"width":237,"height":11}},{"id":"0f7fc212-3319-435b-b58f-397b75f04ae0","block_type":"box","text":"CIM Investment Management, Inc.","page_number":153,"box":{"x":69,"y":327,"width":243,"height":11}},{"id":"3a4c828c-7e37-49af-8099-ae2f1336e670","block_type":"box","text":"Citco Securities, LLC","page_number":153,"box":{"x":69,"y":347,"width":147,"height":10}},{"id":"1d793145-2e62-4f48-abd5-89e9845e195c","block_type":"box","text":"CitiBank, National Association","page_number":153,"box":{"x":69,"y":367,"width":213,"height":11}},{"id":"0cfa290b-7afa-4aca-984c-69ae3c9ff656","block_type":"box","text":"Citigroup Global Markets, Inc.","page_number":153,"box":{"x":69,"y":387,"width":209,"height":12}},{"id":"99f1bc5a-e71c-4dd2-93d6-77eff3621191","block_type":"box","text":"Citizens Bank","page_number":153,"box":{"x":69,"y":408,"width":96,"height":8}},{"id":"9580001e-f74c-4fff-a151-27f3a0067856","block_type":"box","text":"Citizens Business Bank","page_number":153,"box":{"x":69,"y":428,"width":167,"height":9}},{"id":"3b099e12-3e50-4d40-bb17-3dc238237b06","block_type":"box","text":"CME Shareholder Servicing LLC","page_number":153,"box":{"x":69,"y":448,"width":224,"height":11}},{"id":"730117b0-92ab-4abb-b424-4534a6ed4067","block_type":"box","text":"CMFG Life Insurance Company","page_number":153,"box":{"x":69,"y":468,"width":217,"height":11}},{"id":"255df38b-dac4-4094-8037-8080bd8b4bd4","block_type":"box","text":"Comerica Bank","page_number":153,"box":{"x":69,"y":488,"width":107,"height":9}},{"id":"1420cc23-377c-4b9a-9df4-24e7355d836c","block_type":"box","text":"Commonwealth Financial Network","page_number":153,"box":{"x":69,"y":508,"width":239,"height":9}},{"id":"4295d103-7b15-4183-be22-8604b47e4785","block_type":"box","text":"Computershare Trust Company","page_number":153,"box":{"x":69,"y":529,"width":220,"height":11}},{"id":"26fe22f0-fcd0-4fde-aef6-3bf4c08279f1","block_type":"box","text":"Conduent HR Services, LLC","page_number":153,"box":{"x":69,"y":549,"width":195,"height":10}},{"id":"96ef1bb6-a462-48cb-ab07-c1fda6c8f0a9","block_type":"box","text":"Delaware Life Insurance Company","page_number":153,"box":{"x":70,"y":569,"width":240,"height":11}},{"id":"829e90e1-0ddd-4ff1-89ba-395bec49b848","block_type":"box","text":"Delaware Trust Company","page_number":153,"box":{"x":70,"y":589,"width":176,"height":11}},{"id":"e66b5920-860c-4559-935f-14ef977802bd","block_type":"box","text":"Deutsche Bank AG","page_number":153,"box":{"x":70,"y":609,"width":130,"height":9}},{"id":"607067f2-fb5f-498a-87b5-708a9c9f92e5","block_type":"box","text":"Deutsche Bank Trust Company Americas","page_number":153,"box":{"x":70,"y":629,"width":287,"height":11}},{"id":"871eec83-2d71-4454-9fce-6c93edb2f3a4","block_type":"box","text":"Digital Retirement Solutions, Inc.","page_number":153,"box":{"x":70,"y":649,"width":232,"height":12}},{"id":"e9ab567a-c56c-4ea7-8fe5-02392689c324","block_type":"box","text":"Dunham & Associates Investment Counsel, Inc.","page_number":153,"box":{"x":70,"y":670,"width":337,"height":10}},{"id":"3e76d0bd-fa09-43a1-b406-b25bd5f89a4e","block_type":"box","text":"Dynasty Financial Par tners LLC","page_number":153,"box":{"x":70,"y":690,"width":218,"height":11}},{"id":"083ea299-80f2-4be4-bcd6-8c929e2d2d46","block_type":"box","text":"Edward D. Jones & Co., L.P.","page_number":153,"box":{"x":70,"y":710,"width":195,"height":10}},{"id":"9dd931b9-b947-4e5b-b66c-b3aef25bdf35","block_type":"box","text":"Empire Fidelity Investments Life Insurance Company","page_number":153,"box":{"x":70,"y":730,"width":370,"height":11}},{"id":"4c551516-ba62-4047-93ed-94da006ac55d","block_type":"box","text":"Empower Annuity Insurance Company of America","page_number":153,"box":{"x":70,"y":750,"width":344,"height":11}},{"id":"58cef167-4d9c-4aaa-abc8-e77b5ec7cc4d","block_type":"box","text":"Empower Financial Services, Inc.","page_number":153,"box":{"x":70,"y":770,"width":231,"height":11}},{"id":"4a143774-1677-4400-9ffc-264eeb400aa5","block_type":"box","text":"Empower Life & Annuity Insurance Company of New","page_number":153,"box":{"x":70,"y":790,"width":365,"height":12}},{"id":"4540b79d-d0dc-4f26-a57e-1384c778f467","block_type":"box","text":"York","page_number":153,"box":{"x":68,"y":806,"width":30,"height":9}},{"id":"ce78a09a-84d1-4c9d-a287-7a8319c5bee1","block_type":"box","text":"Empower Plan Services, LLC","page_number":153,"box":{"x":70,"y":826,"width":201,"height":11}},{"id":"b71fad08-da5c-40f9-8caf-0c91538387eb","block_type":"box","text":"Envestnet Asset Management, Inc.","page_number":153,"box":{"x":70,"y":846,"width":246,"height":11}},{"id":"2f11464f-1183-4dc5-a085-29d4d16150bc","block_type":"box","text":"Equitable Advisors, LLC","page_number":153,"box":{"x":70,"y":866,"width":165,"height":11}},{"id":"4c1f9528-44b2-4d7a-94dc-dcc6322ff169","block_type":"box","text":"Equitable Life Insurance Company","page_number":153,"box":{"x":70,"y":886,"width":240,"height":11}},{"id":"64f22e5e-0b4f-4028-9e96-2ae2e0519016","block_type":"box","text":"E*trade Savings Bank","page_number":153,"box":{"x":70,"y":906,"width":155,"height":12}},{"id":"2b32c638-784d-4e2a-9f53-b2e07b71d398","block_type":"box","text":"Federal Deposit Insurance Corporation","page_number":153,"box":{"x":510,"y":45,"width":271,"height":11}},{"id":"ae9c460c-3e40-4be7-a8fd-ffd2849e7a3a","block_type":"box","text":"Fidelity Brokerage Services LLC","page_number":153,"box":{"x":510,"y":65,"width":222,"height":11}},{"id":"5a7d6f79-7574-4cfe-8007-6b4cc1ce5122","block_type":"box","text":"Fidelity Investments Institutional Operations Company,","page_number":153,"box":{"x":510,"y":85,"width":384,"height":11}},{"id":"f10c2500-9ce8-4e5f-b4f5-31f6329f50a5","block_type":"box","text":"Inc.","page_number":153,"box":{"x":510,"y":100,"width":23,"height":9}},{"id":"7c1f5bd9-31ac-4ae0-8e36-99a20d442103","block_type":"box","text":"Fidelity Investments Life Insurance Company","page_number":153,"box":{"x":510,"y":120,"width":316,"height":11}},{"id":"f606f99c-b25f-464e-a499-4f16046f5df6","block_type":"box","text":"Fifth Third Securities, Inc.","page_number":153,"box":{"x":510,"y":140,"width":179,"height":11}},{"id":"0b40b363-7b6b-4223-8c2c-5a57e8fad04f","block_type":"box","text":"First Allied Securities, Inc.","page_number":153,"box":{"x":510,"y":161,"width":183,"height":10}},{"id":"360361c0-5e72-4ffc-8ff5-b639672a8bde","block_type":"box","text":"First Command Financial Planning, Inc.","page_number":153,"box":{"x":510,"y":181,"width":273,"height":11}},{"id":"5a66a5da-c18c-4d80-98fd-4e7ac7cf3319","block_type":"box","text":"First Hawaiian Bank","page_number":153,"box":{"x":510,"y":201,"width":139,"height":9}},{"id":"b289513b-d33b-480d-9be1-74cc7ab02d76","block_type":"box","text":"First Republic Bank","page_number":153,"box":{"x":510,"y":221,"width":136,"height":11}},{"id":"26de0451-d561-4dec-aa43-12b2613f1e8b","block_type":"box","text":"First Security Benefit Life Insurance and Annuity","page_number":153,"box":{"x":510,"y":241,"width":339,"height":11}},{"id":"97d5bd3d-196b-4dc7-9866-0d7394dde585","block_type":"box","text":"Company of New York","page_number":153,"box":{"x":509,"y":256,"width":153,"height":11}},{"id":"14f740db-d755-4b5f-8e8d-5285e428a0bf","block_type":"box","text":"First Symetra National Life Insurance Company of New","page_number":153,"box":{"x":510,"y":276,"width":386,"height":12}},{"id":"42d56c9a-e5d9-4e2f-a472-b1a96ce10130","block_type":"box","text":"York","page_number":153,"box":{"x":509,"y":292,"width":29,"height":9}},{"id":"4dcca39c-425e-47d9-b075-f07b9d69cc00","block_type":"box","text":"First-Citizens Bank & Trust Company","page_number":153,"box":{"x":510,"y":312,"width":257,"height":11}},{"id":"61c033db-1215-42d4-8d10-049ab0ea03d6","block_type":"box","text":"FIS Brokerage & Securities Services LLC","page_number":153,"box":{"x":510,"y":332,"width":287,"height":11}},{"id":"8d7b4657-d378-4ab1-80ae-74701cc6fc39","block_type":"box","text":"FNEX Capital, LLC","page_number":153,"box":{"x":510,"y":352,"width":125,"height":11}},{"id":"a1fbaa90-6330-4025-93d8-2fccaef4fb21","block_type":"box","text":"Forethought Life Insurance Company","page_number":153,"box":{"x":510,"y":372,"width":259,"height":11}},{"id":"91020c2f-288a-4461-9061-3511567f8ac9","block_type":"box","text":"FSC Securities Corporation","page_number":153,"box":{"x":510,"y":392,"width":189,"height":11}},{"id":"82602f12-717f-4c32-90f7-11a2bfe5ae89","block_type":"box","text":"Genwor th Life and Annuity Insurance Company","page_number":153,"box":{"x":509,"y":412,"width":332,"height":12}},{"id":"a582bd3b-22f8-4737-bc54-12f2dc6339f3","block_type":"box","text":"Genwor th Life Insurance Company of New York","page_number":153,"box":{"x":509,"y":433,"width":332,"height":11}},{"id":"bca5f4f6-c6a3-4ba0-8dc0-851b46954565","block_type":"box","text":"Global Atlantic Distributors, LLC","page_number":153,"box":{"x":509,"y":453,"width":225,"height":10}},{"id":"2055c2eb-e022-4a29-b3bf-6c5fa411c081","block_type":"box","text":"Goldman Sachs & Co.","page_number":153,"box":{"x":509,"y":473,"width":155,"height":9}},{"id":"884d8973-ace4-414c-97fc-5e584bcd2171","block_type":"box","text":"Great Pacific Securities, LLC","page_number":153,"box":{"x":509,"y":493,"width":201,"height":11}},{"id":"ea0d7e17-85ab-47c0-808f-1ac13842a158","block_type":"box","text":"Guardian Insurance & Annuity Co., Inc.","page_number":153,"box":{"x":509,"y":513,"width":273,"height":11}},{"id":"6bc461b6-6965-4bcc-8ceb-2d0d8d9e2f00","block_type":"box","text":"Hancock Whitney Bank","page_number":153,"box":{"x":510,"y":534,"width":161,"height":11}},{"id":"236dd46c-9f6b-4b95-bb44-ef4e8ec3b480","block_type":"box","text":"Har tford Funds Management Company","page_number":153,"box":{"x":510,"y":554,"width":274,"height":11}},{"id":"900d3ab9-f266-4bee-b1b7-af6fe69f6e39","block_type":"box","text":"Har tford Securities Distribution Company, Inc.","page_number":153,"box":{"x":510,"y":574,"width":324,"height":11}},{"id":"9c9e8e03-9888-4aa3-936e-8b24a957acd5","block_type":"box","text":"Hazeltree Fund Services, Inc.","page_number":153,"box":{"x":510,"y":594,"width":206,"height":10}},{"id":"f72a84ea-c9cf-48be-a9af-4a6bfb3b5491","block_type":"box","text":"Hightower Securities, Inc.","page_number":153,"box":{"x":510,"y":614,"width":179,"height":11}},{"id":"42f48553-eb3c-4fc7-b42d-47c8521b6bb9","block_type":"box","text":"Hilltop Securities Inc.","page_number":153,"box":{"x":510,"y":634,"width":149,"height":11}},{"id":"e26049c4-f2c8-4a9e-b1e8-276e69003679","block_type":"box","text":"HSBC Bank USA, N.A.","page_number":153,"box":{"x":510,"y":655,"width":153,"height":10}},{"id":"7ab8bdb9-0d05-4827-84e7-68438af8f7d6","block_type":"box","text":"Huntington Securities, Inc.","page_number":153,"box":{"x":510,"y":675,"width":186,"height":11}},{"id":"282182fc-3c13-4c1c-af93-a8abe2cdc752","block_type":"box","text":"Institutional Cash Distributors, LLC","page_number":153,"box":{"x":510,"y":695,"width":247,"height":10}},{"id":"82dc7e38-447d-41cd-a1e1-d07e165bb5e0","block_type":"box","text":"Integrity Life Insurance Company","page_number":153,"box":{"x":510,"y":715,"width":231,"height":11}},{"id":"a52c9e16-c0f0-4f63-a35b-4611549898f4","block_type":"box","text":"Interactive Brokers, LLC","page_number":153,"box":{"x":510,"y":735,"width":168,"height":11}},{"id":"9649ec17-1547-4a21-a29c-b6e03cd1d024","block_type":"box","text":"Investment Trust of California","page_number":153,"box":{"x":510,"y":755,"width":208,"height":9}},{"id":"0e03ae83-9a79-4435-9fbc-4b554b087a85","block_type":"box","text":"J.P. Morgan Institutional Investments Inc.","page_number":153,"box":{"x":509,"y":776,"width":292,"height":11}},{"id":"5629b4ef-4539-46e4-b987-67df36f90d81","block_type":"box","text":"J.P. Morgan Securities LLC","page_number":153,"box":{"x":509,"y":796,"width":188,"height":11}},{"id":"44d21861-9751-4d1d-a7e3-cfac72ec550a","block_type":"box","text":"Jefferies LLC","page_number":153,"box":{"x":509,"y":816,"width":92,"height":9}},{"id":"d0e0fd27-721c-433c-aa61-90ec0f2e5e31","block_type":"box","text":"Jefferson National Life Insurance Company","page_number":153,"box":{"x":509,"y":836,"width":306,"height":11}},{"id":"258df772-2aa6-4582-b3d2-77b86ad4091a","block_type":"box","text":"Jefferson National Life Insurance Company of New York","page_number":153,"box":{"x":509,"y":856,"width":394,"height":11}},{"id":"e472b65c-d53d-429c-bcf2-9182e7788d15","block_type":"box","text":"John Hancock Life Insurance Company (U.S.A.)","page_number":153,"box":{"x":509,"y":876,"width":332,"height":11}},{"id":"bd017080-2b94-463d-97d6-7e25d58c8cc2","block_type":"box","text":"John Hancock Life Insurance Company of New York","page_number":153,"box":{"x":509,"y":896,"width":362,"height":11}},{"id":"0fd28928-c7e6-42f0-9658-ef19c68b3295","block_type":"box","text":"II-113","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"19d73767-0c0f-4944-84b4-73227a2a985c","block_type":"box","text":"NM1026U-5982643-153/241","page_number":153,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"d6177cee-3972-4b0e-9410-56c5180b884f","block_type":"box","text":"John Hancock Trust Company","page_number":154,"box":{"x":69,"y":45,"width":209,"height":11}},{"id":"a0261324-d582-4392-b3e3-0fc017b9bf6f","block_type":"box","text":"JPMorgan Chase Bank, N.A.","page_number":154,"box":{"x":69,"y":65,"width":197,"height":11}},{"id":"bd31ec22-0282-437b-abe4-2079b5eb3008","block_type":"box","text":"Kestra Investment Services, LLC","page_number":154,"box":{"x":70,"y":85,"width":231,"height":10}},{"id":"c14111cd-f745-4b33-a35f-5e1135bf6f78","block_type":"box","text":"Lincoln Financial Advisors Corporation","page_number":154,"box":{"x":70,"y":105,"width":267,"height":11}},{"id":"1034e484-169f-4bd7-9688-47ace41f40d0","block_type":"box","text":"Lincoln Financial Securities Corporation","page_number":154,"box":{"x":70,"y":125,"width":278,"height":11}},{"id":"bc574d0e-1c44-4dff-a7e1-46eb4ad383b8","block_type":"box","text":"Lincoln Life & Annuity Company of New York","page_number":154,"box":{"x":70,"y":145,"width":310,"height":12}},{"id":"f6012ae4-89b7-40fd-b9c0-aae20d960f64","block_type":"box","text":"Lincoln National Life Insurance Company","page_number":154,"box":{"x":70,"y":166,"width":288,"height":11}},{"id":"5746082c-332b-4b55-9a7c-8f22990718a2","block_type":"box","text":"Lincoln Retirement Services LLC","page_number":154,"box":{"x":70,"y":186,"width":229,"height":9}},{"id":"e35f8414-1182-4b6a-b329-fcc25c9c050f","block_type":"box","text":"Lombard International Life Assurance Company","page_number":154,"box":{"x":70,"y":206,"width":335,"height":11}},{"id":"a70a554f-073c-4e9c-97fa-7d1071f06c8c","block_type":"box","text":"LPL Financial LLC","page_number":154,"box":{"x":70,"y":226,"width":122,"height":9}},{"id":"a7ec35b8-1676-420e-a941-7c77bd0174c8","block_type":"box","text":"M&T Securities Inc.","page_number":154,"box":{"x":70,"y":246,"width":136,"height":9}},{"id":"80d27a3a-1d29-4891-9290-ed9961f936b0","block_type":"box","text":"Manufacturers and Traders Trust Company","page_number":154,"box":{"x":70,"y":266,"width":302,"height":12}},{"id":"674dc72c-097b-4ca9-9959-d0ed0419d3bd","block_type":"box","text":"Massachusetts Mutual Life Insurance Company","page_number":154,"box":{"x":70,"y":286,"width":337,"height":12}},{"id":"07e720db-8606-409d-bf30-5e89f393425b","block_type":"box","text":"Members Life Insurance Company","page_number":154,"box":{"x":70,"y":307,"width":241,"height":11}},{"id":"b5c5def4-a64a-40d8-a41f-c70db129d5fa","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith Incorporated","page_number":154,"box":{"x":70,"y":327,"width":356,"height":11}},{"id":"a4a0f3b9-7722-4424-80bd-3ee8bff681d5","block_type":"box","text":"Metavante Corporation","page_number":154,"box":{"x":70,"y":347,"width":160,"height":11}},{"id":"32220767-635a-4691-8830-7e6ad7bc8af7","block_type":"box","text":"Metropolitan Life Insurance Company","page_number":154,"box":{"x":70,"y":367,"width":264,"height":11}},{"id":"7f4285be-7386-47b7-b8a2-c348aad5b218","block_type":"box","text":"Mid Atlantic Clearing & Settlement Corporation","page_number":154,"box":{"x":70,"y":387,"width":330,"height":12}},{"id":"f8ceb275-60c9-4b00-8216-eea14e440174","block_type":"box","text":"Midland Life Insurance Company","page_number":154,"box":{"x":70,"y":407,"width":230,"height":12}},{"id":"25812120-e073-49cc-a9ed-d506bbeb5469","block_type":"box","text":"Minnesota Life Insurance Company","page_number":154,"box":{"x":70,"y":428,"width":249,"height":11}},{"id":"b1695550-871e-4cf7-9bc6-fb01dce36ed9","block_type":"box","text":"Mischler Financial Group","page_number":154,"box":{"x":70,"y":448,"width":173,"height":11}},{"id":"eb933579-b344-44e7-813b-c769a66ffd7f","block_type":"box","text":"Mizuho Securities USA Inc.","page_number":154,"box":{"x":70,"y":468,"width":189,"height":9}},{"id":"5f4740f7-2753-4fec-85dd-a452e51898f4","block_type":"box","text":"MML Distributors, LLC","page_number":154,"box":{"x":70,"y":488,"width":156,"height":11}},{"id":"ee964e42-ab63-4936-93d9-bed3b1e8699a","block_type":"box","text":"MML Investors Services, LLC","page_number":154,"box":{"x":70,"y":508,"width":205,"height":11}},{"id":"0569e4f6-30ef-4100-96f6-ffd0f8eed6c8","block_type":"box","text":"Morgan Stanley & Co. LLC","page_number":154,"box":{"x":70,"y":529,"width":185,"height":11}},{"id":"a8becf32-43d5-46e4-b242-5e2c09a79173","block_type":"box","text":"Morgan Stanley Distribution, Inc.","page_number":154,"box":{"x":70,"y":549,"width":230,"height":11}},{"id":"a5ec50d9-d7db-4f9a-a244-4037da4562e2","block_type":"box","text":"Morgan Stanley Smith Barney LLC","page_number":154,"box":{"x":70,"y":569,"width":240,"height":11}},{"id":"b66756a3-5faa-4f85-8664-a3ea15523356","block_type":"box","text":"MUFG Union Bank, National Association","page_number":154,"box":{"x":70,"y":589,"width":282,"height":10}},{"id":"461d39b1-a12c-4f81-b0f7-3854acfde209","block_type":"box","text":"Nassau Life Insurance Company","page_number":154,"box":{"x":70,"y":609,"width":228,"height":11}},{"id":"8d71d257-00f8-4910-b101-a83377c072da","block_type":"box","text":"National Financial Services LLC","page_number":154,"box":{"x":70,"y":629,"width":222,"height":9}},{"id":"e6737965-ec0f-4f65-9745-ff949e514c16","block_type":"box","text":"National Integrity Life Insurance Company","page_number":154,"box":{"x":70,"y":649,"width":294,"height":12}},{"id":"7337ad01-a19f-4801-bf73-a642a8971576","block_type":"box","text":"National Life Insurance Company","page_number":154,"box":{"x":70,"y":669,"width":233,"height":12}},{"id":"be59cd19-5671-4d51-8abc-a92065d13002","block_type":"box","text":"Nationwide Financial Services, Inc.","page_number":154,"box":{"x":70,"y":690,"width":245,"height":10}},{"id":"3cde7310-bf32-43fe-9a44-f37ce5b08077","block_type":"box","text":"Nationwide Fund Distributors LLC","page_number":154,"box":{"x":70,"y":710,"width":234,"height":9}},{"id":"f00479c1-b7ed-4648-8b77-a863682e83eb","block_type":"box","text":"Nationwide Retirement Solutions","page_number":154,"box":{"x":70,"y":730,"width":231,"height":9}},{"id":"b7e05212-4b48-4a0b-9f21-042845307dd6","block_type":"box","text":"NCB Federal Savings Bank","page_number":154,"box":{"x":70,"y":750,"width":187,"height":11}},{"id":"81a89c6c-d148-4259-a445-60787cbf822a","block_type":"box","text":"New England Pension Plan Systems, LLC","page_number":154,"box":{"x":70,"y":770,"width":289,"height":12}},{"id":"6e4752bd-295a-484e-aeb6-4297040ca5ec","block_type":"box","text":"New York Life Insurance and Annuity Corporation","page_number":154,"box":{"x":70,"y":790,"width":342,"height":12}},{"id":"66674ae5-49cf-45e1-a3bb-45647a04fbc6","block_type":"box","text":"Newpor t Retirement Services, Inc.","page_number":154,"box":{"x":70,"y":811,"width":242,"height":11}},{"id":"e1b912c5-fb22-4849-8354-9bb2c36683bd","block_type":"box","text":"Nor thbrook Bank & Trust Company","page_number":154,"box":{"x":70,"y":831,"width":246,"height":11}},{"id":"6c7d3003-f737-4c6d-81c5-1adc4c28b236","block_type":"box","text":"Nor thern Trust Company","page_number":154,"box":{"x":70,"y":851,"width":173,"height":11}},{"id":"89055543-ffd0-40b3-ab5e-c29480b83cb0","block_type":"box","text":"Nor thwestern Mutual Investment Services, LLC","page_number":154,"box":{"x":70,"y":871,"width":335,"height":11}},{"id":"b5a11b75-5ba7-44be-882e-f31354c3f47f","block_type":"box","text":"Nor thwestern Mutual Life Insurance Company","page_number":154,"box":{"x":70,"y":891,"width":325,"height":11}},{"id":"f5f4270a-72be-4990-92b0-a74129da3f9b","block_type":"box","text":"NYLife Distributors LLC","page_number":154,"box":{"x":70,"y":911,"width":162,"height":9}},{"id":"dd869343-e176-4d5d-903d-4d20315947e1","block_type":"box","text":"Oppenheimer & Co., Inc.","page_number":154,"box":{"x":509,"y":45,"width":173,"height":11}},{"id":"4eb4d786-dd8d-4b49-a1ed-71f9258198c6","block_type":"box","text":"Orion Advisor Services, LLC","page_number":154,"box":{"x":509,"y":65,"width":196,"height":10}},{"id":"a178c6af-35d1-4e40-b92f-c3171ab1ae18","block_type":"box","text":"Osaic Wealth, Inc.","page_number":154,"box":{"x":509,"y":85,"width":127,"height":10}},{"id":"a661765b-28bb-4f41-9029-120e0e993cb1","block_type":"box","text":"Pacific Life & Annuity Company","page_number":154,"box":{"x":510,"y":105,"width":218,"height":11}},{"id":"8ed4774a-0aad-4ab1-b56b-49fb98ee4032","block_type":"box","text":"Pacific Life Insurance Company","page_number":154,"box":{"x":510,"y":125,"width":221,"height":11}},{"id":"8d03e0f1-780d-4a63-9600-d66c712fbb94","block_type":"box","text":"Pacific Select Distributors, LLC","page_number":154,"box":{"x":510,"y":145,"width":217,"height":11}},{"id":"3b44cf23-0096-46a2-a69f-b5b295faa423","block_type":"box","text":"Park Avenue Securities LLC","page_number":154,"box":{"x":510,"y":166,"width":192,"height":9}},{"id":"7c772cbb-b3dc-4e38-a242-5b3f51fa38cc","block_type":"box","text":"Penserra Securities LLC","page_number":154,"box":{"x":510,"y":186,"width":169,"height":9}},{"id":"a2048558-a2b5-48d1-b277-ec1623961c11","block_type":"box","text":"Pershing LLC","page_number":154,"box":{"x":510,"y":206,"width":90,"height":11}},{"id":"edf17af3-9905-4260-9e4a-de7f1723475c","block_type":"box","text":"PFPC Inc.","page_number":154,"box":{"x":510,"y":226,"width":64,"height":9}},{"id":"c68f0391-4975-4f07-8d37-48108d616516","block_type":"box","text":"Piper Jaffray & Co.","page_number":154,"box":{"x":510,"y":246,"width":130,"height":11}},{"id":"28166dba-4b37-4de2-8cae-c55ae24b72f0","block_type":"box","text":"PNC Bank, National Association","page_number":154,"box":{"x":510,"y":266,"width":224,"height":11}},{"id":"4782bb0e-a595-4b3f-a783-df9bdbedc3c6","block_type":"box","text":"PNC Capital Markets LLC","page_number":154,"box":{"x":510,"y":287,"width":176,"height":10}},{"id":"a4517df5-6f2e-4440-a8c7-b1f8783a964c","block_type":"box","text":"PNC Investments LLC","page_number":154,"box":{"x":510,"y":307,"width":151,"height":9}},{"id":"f2b88baf-0441-4a16-abb6-ca863cd6d3b7","block_type":"box","text":"Principal Bank","page_number":154,"box":{"x":510,"y":327,"width":99,"height":11}},{"id":"27508a08-b887-41fc-af4a-96e2c13cfb00","block_type":"box","text":"Principal Life Insurance Company","page_number":154,"box":{"x":510,"y":347,"width":235,"height":11}},{"id":"9695a4a8-bc9b-4925-b1bf-315eb71f6964","block_type":"box","text":"Protective Life and Annuity Insurance Company","page_number":154,"box":{"x":510,"y":367,"width":332,"height":11}},{"id":"3b2a70f5-6165-49a3-9d24-918ca04f2164","block_type":"box","text":"Protective Life Insurance Company","page_number":154,"box":{"x":510,"y":387,"width":245,"height":11}},{"id":"b2b82710-7003-4957-9920-90cabb408a4b","block_type":"box","text":"Pruco Life Insurance Company","page_number":154,"box":{"x":510,"y":407,"width":215,"height":12}},{"id":"df902b88-9aa8-4488-bdcf-63e648389dfe","block_type":"box","text":"Pruco Life Insurance Company of New Jersey","page_number":154,"box":{"x":510,"y":428,"width":318,"height":11}},{"id":"425820d6-cb82-45a6-ab68-ae140a91fcdb","block_type":"box","text":"Prudential Annuities Distributors, Inc.","page_number":154,"box":{"x":510,"y":448,"width":263,"height":10}},{"id":"9fd88a6a-ac29-4b9c-909d-368c7ed1d633","block_type":"box","text":"Prudential Insurance Company of America","page_number":154,"box":{"x":510,"y":468,"width":295,"height":11}},{"id":"843f634f-fd18-42e6-a5eb-f38bf3733327","block_type":"box","text":"Raymond James & Associates, Inc.","page_number":154,"box":{"x":510,"y":488,"width":248,"height":11}},{"id":"0a2844d4-1d9b-4439-9635-34445fc8a8f2","block_type":"box","text":"Raymond James Financial Services, Inc.","page_number":154,"box":{"x":510,"y":508,"width":283,"height":11}},{"id":"7be846ed-fdf0-4751-adfc-aeb1ae6f36a6","block_type":"box","text":"RBC Capital Markets, LLC","page_number":154,"box":{"x":510,"y":529,"width":182,"height":10}},{"id":"4cfc5b72-a81f-479f-8dad-02f96b19bf3d","block_type":"box","text":"Regions Bank","page_number":154,"box":{"x":510,"y":549,"width":96,"height":11}},{"id":"05fdf247-ed43-4b86-bf5d-ec180de32af5","block_type":"box","text":"Reliance Trust Company","page_number":154,"box":{"x":510,"y":569,"width":171,"height":11}},{"id":"7eea8d0a-2509-4cc1-8e49-8a2b3e8cd6d5","block_type":"box","text":"Reliastar Life Insurance Company","page_number":154,"box":{"x":510,"y":589,"width":238,"height":11}},{"id":"cf10f8a4-08c2-45ed-a867-e336e50631fb","block_type":"box","text":"Reliastar Life Insurance Company of New York","page_number":154,"box":{"x":510,"y":609,"width":326,"height":11}},{"id":"c79fbdd5-f2fd-4f40-baec-2f52eac69e70","block_type":"box","text":"RiverSource Distributors, Inc.","page_number":154,"box":{"x":510,"y":629,"width":205,"height":11}},{"id":"6f1088bf-1068-4fb2-a641-e61a7ec1b1d3","block_type":"box","text":"RiverSource Life Insurance Co. of New York","page_number":154,"box":{"x":510,"y":649,"width":306,"height":9}},{"id":"b9b0203b-3341-4b3e-8510-fb90cab6c6b9","block_type":"box","text":"RiverSource Life Insurance Company","page_number":154,"box":{"x":510,"y":669,"width":259,"height":12}},{"id":"27703a5e-feef-4f0c-9a45-049a6bfd4ad0","block_type":"box","text":"SagePoint Financial, Inc.","page_number":154,"box":{"x":509,"y":690,"width":173,"height":11}},{"id":"ae17e8fd-67f3-47be-a53d-4841d458580a","block_type":"box","text":"Sammons Retirement Solutions, Inc.","page_number":154,"box":{"x":509,"y":710,"width":260,"height":10}},{"id":"f46a211a-0444-432a-9d2c-3ada36b0ac94","block_type":"box","text":"Sanctuary Wealth Group, LLC","page_number":154,"box":{"x":509,"y":730,"width":208,"height":11}},{"id":"f839c2d7-d0a5-4e4c-9b6c-9215a401e5fe","block_type":"box","text":"Santander Bank, N.A.","page_number":154,"box":{"x":509,"y":750,"width":152,"height":11}},{"id":"2e9d151a-fc1f-4c91-873b-0d0e531cc16c","block_type":"box","text":"Saturna Trust Company","page_number":154,"box":{"x":509,"y":770,"width":167,"height":11}},{"id":"a2d6867d-06a4-4d52-abbe-51d4f9189f94","block_type":"box","text":"Securities America, Inc.","page_number":154,"box":{"x":509,"y":791,"width":167,"height":10}},{"id":"58e37546-cd30-4a43-9996-c833e9c92594","block_type":"box","text":"Securities Finance Trust Company","page_number":154,"box":{"x":509,"y":811,"width":241,"height":11}},{"id":"c54010b0-de73-44c1-98b3-77731346f317","block_type":"box","text":"Security Benefit Life Insurance Company","page_number":154,"box":{"x":509,"y":831,"width":287,"height":11}},{"id":"cc2f9c6c-b236-4c4e-953f-dbe6d003e758","block_type":"box","text":"Security Financial Resources, Inc.","page_number":154,"box":{"x":509,"y":851,"width":238,"height":11}},{"id":"f3250f92-4457-4f1d-8697-f72c366f1479","block_type":"box","text":"Security Life of Denver Insurance Company","page_number":154,"box":{"x":509,"y":871,"width":305,"height":11}},{"id":"bacf5909-cdf9-4555-b5b6-dce64b1b8953","block_type":"box","text":"SEI Private Trust Company","page_number":154,"box":{"x":509,"y":891,"width":187,"height":11}},{"id":"7f041076-b5b4-43a6-9787-f5a347d401ce","block_type":"box","text":"SG Americas Securities, LLC","page_number":154,"box":{"x":509,"y":912,"width":202,"height":10}},{"id":"63473be9-e0e1-48a7-805a-628679090e51","block_type":"box","text":"II-114","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"971e1e4a-b4bc-4ded-a46b-dc91d4ec9b8f","block_type":"box","text":"NM1026U-5982643-154/241","page_number":154,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"7ff9eaaa-b378-465a-a00d-0dd35df01090","block_type":"box","text":"Silicon Valley Bank","page_number":155,"box":{"x":69,"y":45,"width":132,"height":11}},{"id":"67ae0047-ce8e-48e2-88d0-40452ad43472","block_type":"box","text":"Standard Insurance Company","page_number":155,"box":{"x":69,"y":65,"width":209,"height":11}},{"id":"dc0085f4-10ba-45c9-a4ea-bf853a0576cd","block_type":"box","text":"State Farm Life and Accident Assurance Company","page_number":155,"box":{"x":69,"y":85,"width":355,"height":11}},{"id":"837cf154-1263-4617-a9f0-e0cba1e18db0","block_type":"box","text":"State Farm Life Insurance Company","page_number":155,"box":{"x":69,"y":105,"width":254,"height":11}},{"id":"b39b6f31-927b-4158-b49a-49a33baea1c1","block_type":"box","text":"State Farm VP Management Corp.","page_number":155,"box":{"x":69,"y":125,"width":240,"height":12}},{"id":"649bd8ff-df13-4307-8b0a-0fb61783d473","block_type":"box","text":"State Street Bank and Trust Company","page_number":155,"box":{"x":69,"y":146,"width":269,"height":11}},{"id":"e776470d-d034-4df1-80fb-4b2f63f2cc94","block_type":"box","text":"State Street Global Markets, LLC","page_number":155,"box":{"x":69,"y":166,"width":234,"height":10}},{"id":"c83c05e6-8021-4770-8cf9-2d91c008d098","block_type":"box","text":"Stern Brothers & Co.","page_number":155,"box":{"x":69,"y":186,"width":147,"height":9}},{"id":"c542ed6a-29ab-40bc-bbbc-e935e792569f","block_type":"box","text":"Stifel, Nicolaus & Company, Incorporated","page_number":155,"box":{"x":69,"y":206,"width":291,"height":11}},{"id":"635a198a-e36d-46bd-ad50-2609fc2cccf9","block_type":"box","text":"Summit Brokerage Services, Inc.","page_number":155,"box":{"x":69,"y":226,"width":232,"height":11}},{"id":"4dc0ec63-90c4-4994-84f6-a6490a71a5ea","block_type":"box","text":"SVB Asset Management","page_number":155,"box":{"x":69,"y":246,"width":171,"height":11}},{"id":"f55efaae-c079-40ff-9d32-32f715efa8bd","block_type":"box","text":"Symetra Life Insurance Company","page_number":155,"box":{"x":69,"y":266,"width":233,"height":12}},{"id":"a397bdec-7268-4592-972f-7286d1198a00","block_type":"box","text":"Syntal Capital Par tners, LLC","page_number":155,"box":{"x":69,"y":287,"width":199,"height":11}},{"id":"cb426c6b-07c8-449d-ba46-8872ccd62162","block_type":"box","text":"T. Rowe Price Retirement Plan Services, Inc.","page_number":155,"box":{"x":68,"y":307,"width":315,"height":10}},{"id":"53a99899-1d0e-41e5-8e61-8645871da22a","block_type":"box","text":"Talcott Resolution Life and Annuity Insurance Company","page_number":155,"box":{"x":68,"y":327,"width":391,"height":11}},{"id":"5e544b86-3997-44e7-846d-0fc620eacd56","block_type":"box","text":"Talcott Resolution Life Insurance Company","page_number":155,"box":{"x":68,"y":347,"width":303,"height":11}},{"id":"40257a34-b331-4a01-a4d8-c78642d1b85e","block_type":"box","text":"TD Ameritrade Clearing, Inc.","page_number":155,"box":{"x":68,"y":367,"width":198,"height":11}},{"id":"7d7547a0-9892-4367-82f3-c3f92dda5868","block_type":"box","text":"TD Ameritrade, Inc.","page_number":155,"box":{"x":68,"y":388,"width":135,"height":10}},{"id":"c10a8018-76e6-499b-95d2-3f9ca01812e4","block_type":"box","text":"TD Prime Services (US) LLC","page_number":155,"box":{"x":68,"y":408,"width":197,"height":10}},{"id":"e193cb45-1664-4a35-ad6b-22827acdbfe3","block_type":"box","text":"Teachers Insurance and Annuity Association of America","page_number":155,"box":{"x":68,"y":428,"width":393,"height":11}},{"id":"d65f9005-9429-43e4-8417-596ac6c55eb7","block_type":"box","text":"Tigress Financial Par tners, LLC","page_number":155,"box":{"x":68,"y":448,"width":221,"height":11}},{"id":"975d790c-7da6-4f28-9877-9c1afba540f2","block_type":"box","text":"Transamerica Financial Life Insurance Company","page_number":155,"box":{"x":68,"y":468,"width":339,"height":11}},{"id":"03dcb480-fa3c-47e9-a487-2e6576e7e04c","block_type":"box","text":"Transamerica Life Insurance Company","page_number":155,"box":{"x":68,"y":488,"width":272,"height":11}},{"id":"f8ff3171-f412-4622-a1a6-4b84cee51cd2","block_type":"box","text":"Treasury Brokerage","page_number":155,"box":{"x":68,"y":508,"width":138,"height":12}},{"id":"5d7e0c07-a8aa-4e6b-a039-9a46fdc76593","block_type":"box","text":"Triad Advisors, LLC","page_number":155,"box":{"x":68,"y":529,"width":135,"height":10}},{"id":"53abdc9b-a4e7-4c88-8a92-73caa441d6a2","block_type":"box","text":"Truist Bank","page_number":155,"box":{"x":68,"y":549,"width":81,"height":9}},{"id":"c49ffffe-494e-4d2a-b8e5-24e4d5e6ac74","block_type":"box","text":"U.S. Bancorp Investments, Inc.","page_number":155,"box":{"x":70,"y":569,"width":218,"height":11}},{"id":"c267a644-9663-4dcf-aa13-be23d363124f","block_type":"box","text":"U.S. Bank, National Association","page_number":155,"box":{"x":510,"y":45,"width":224,"height":10}},{"id":"e51f5fe4-42fe-4bae-b891-9de4a7c6afde","block_type":"box","text":"UBATCO & Co.","page_number":155,"box":{"x":510,"y":65,"width":99,"height":9}},{"id":"fcf10851-40f5-4484-a9df-f534231f5664","block_type":"box","text":"UBS Financial Services, Inc.","page_number":155,"box":{"x":510,"y":85,"width":197,"height":10}},{"id":"cb0d10bc-b942-4a32-aa67-4d68a0e5ced1","block_type":"box","text":"UBS Securities LLC","page_number":155,"box":{"x":510,"y":105,"width":136,"height":9}},{"id":"f68919ee-eaf2-4dbd-b339-46cf3d0f5f5f","block_type":"box","text":"Ultimus Fund Solutions, LLC","page_number":155,"box":{"x":510,"y":125,"width":199,"height":11}},{"id":"eb1d37ff-c9ab-470f-9010-fea20278f4e5","block_type":"box","text":"UMB Bank, National Association","page_number":155,"box":{"x":510,"y":146,"width":228,"height":10}},{"id":"b85b6b9d-30c2-4fe7-85a2-7d9d4b37aff5","block_type":"box","text":"United States Life Insurance Company in the City of","page_number":155,"box":{"x":510,"y":166,"width":367,"height":11}},{"id":"465ef127-09f1-4a9f-b0fe-80a96dba9b8f","block_type":"box","text":"New York","page_number":155,"box":{"x":510,"y":181,"width":63,"height":9}},{"id":"db831aac-cb25-4d1c-9f2e-ded54c69cd8d","block_type":"box","text":"VALIC Retirement Services Company","page_number":155,"box":{"x":509,"y":201,"width":260,"height":11}},{"id":"dacf3c71-0b3d-4aad-ad7c-244f1b3f83c1","block_type":"box","text":"Vanguard Group, Inc.","page_number":155,"box":{"x":509,"y":221,"width":147,"height":11}},{"id":"9e2298bd-1ba0-4746-b613-eeb0be3d2d5a","block_type":"box","text":"Vanguard Marketing Corporation","page_number":155,"box":{"x":509,"y":241,"width":227,"height":11}},{"id":"7946f19f-6f86-45d7-838a-cb9ce7ed73f8","block_type":"box","text":"Voya Financial Advisors, Inc.","page_number":155,"box":{"x":509,"y":262,"width":198,"height":10}},{"id":"0882dfc0-cc56-4b17-b7eb-8d62626f9d4c","block_type":"box","text":"Voya Financial Par tners, LLC","page_number":155,"box":{"x":509,"y":282,"width":201,"height":11}},{"id":"4eb4de8d-66ce-4c9b-88d8-2593bfa30581","block_type":"box","text":"Voya Institutional Plan Services, LLC","page_number":155,"box":{"x":509,"y":302,"width":259,"height":11}},{"id":"bb67a6e9-05a0-4949-91b4-92adb5f1d76a","block_type":"box","text":"Voya Insurance and Annuity Company","page_number":155,"box":{"x":509,"y":322,"width":265,"height":11}},{"id":"8ba23b42-797d-4be6-b0c1-4edb1a1bde7e","block_type":"box","text":"Voya Investments Distributor, LLC","page_number":155,"box":{"x":509,"y":342,"width":238,"height":11}},{"id":"2dc69c37-1c98-497c-9a5e-798a643b90f3","block_type":"box","text":"Voya Retirement Insurance and Annuity Company","page_number":155,"box":{"x":509,"y":362,"width":348,"height":11}},{"id":"8973446f-4bde-4d01-81ed-f03a891042ab","block_type":"box","text":"Waddell & Reed, Inc.","page_number":155,"box":{"x":509,"y":382,"width":147,"height":11}},{"id":"c8fb0947-f446-4b05-8fcd-b5823cd3ee94","block_type":"box","text":"Wells Fargo Advisors, LLC","page_number":155,"box":{"x":509,"y":403,"width":182,"height":11}},{"id":"563e761e-6814-49da-aa4b-63ee329324de","block_type":"box","text":"Wells Fargo Advisors Financial Network, LLC","page_number":155,"box":{"x":509,"y":423,"width":312,"height":11}},{"id":"8cfa4589-440d-4766-b2a1-1c1a756be0fd","block_type":"box","text":"Wells Fargo Bank, N.A.","page_number":155,"box":{"x":509,"y":443,"width":161,"height":11}},{"id":"1ad5523b-8287-4d14-aa81-bcd71bfdd9a7","block_type":"box","text":"Wells Fargo Clearing Services, LLC","page_number":155,"box":{"x":509,"y":463,"width":247,"height":11}},{"id":"58e6f9c8-5ee4-44af-ba31-812e3c178baf","block_type":"box","text":"Wells Fargo Investments, LLC","page_number":155,"box":{"x":509,"y":483,"width":210,"height":11}},{"id":"93d1f8e6-6202-4d4b-9a2a-44abd096c18f","block_type":"box","text":"Wells Fargo Securities, LLC","page_number":155,"box":{"x":509,"y":503,"width":193,"height":12}},{"id":"a0c4b152-f63f-480b-920e-9c9c112d2557","block_type":"box","text":"Wilmington Trust, National Association","page_number":155,"box":{"x":509,"y":524,"width":273,"height":11}},{"id":"f166c0eb-7662-47cf-bb5f-485a6ddb5c87","block_type":"box","text":"Woodbury Financial Services, Inc.","page_number":155,"box":{"x":509,"y":544,"width":238,"height":11}},{"id":"ef92261f-28ba-4b5a-9e0f-3b609a7b04ea","block_type":"box","text":"ZB, National Association","page_number":155,"box":{"x":509,"y":564,"width":173,"height":10}},{"id":"adb81d03-35b4-46c7-941f-6708b1ca339a","block_type":"box","text":"E. Sponsorship and Other Incentive Payments and Services","page_number":155,"box":{"x":102,"y":608,"width":423,"height":11}},{"id":"24893e32-85de-493c-9a8e-d5723986d5ee","block_type":"box","text":"In addition to the Additional Payments described above, BlackRock may contribute to various other incentive","page_number":155,"box":{"x":102,"y":631,"width":769,"height":11}},{"id":"eb801a75-f940-406e-9257-eae923954a5e","block_type":"box","text":"arrangements to promote the sale of shares, including hosting proprietary and financially sponsoring Service","page_number":155,"box":{"x":69,"y":646,"width":776,"height":11}},{"id":"e3910b8b-a4d0-4535-ac35-62bbf9ba0773","block_type":"box","text":"Organizations’ training and educational seminars, conferences, meetings or events. BlackRock may also pay for the","page_number":155,"box":{"x":69,"y":661,"width":824,"height":11}},{"id":"7f2cec78-8a1d-4f82-b1e9-51e75578d4e2","block_type":"box","text":"travel, meal, lodging and other expenses of Service Organizations and their salespersons or other personnel in","page_number":155,"box":{"x":68,"y":676,"width":791,"height":11}},{"id":"2af5c08d-44cf-4922-a963-5813ffd80655","block_type":"box","text":"connection with educational and sales promotional programs. This compensation is not included in, and is made in","page_number":155,"box":{"x":69,"y":691,"width":820,"height":11}},{"id":"e05ed1b0-a3d2-4b05-84eb-103339f16427","block_type":"box","text":"addition to, the Additional Payments described above. These payments may be made directly to the Service","page_number":155,"box":{"x":69,"y":706,"width":767,"height":11}},{"id":"9d4f3d78-5c8e-4397-afeb-9ffe4443797b","block_type":"box","text":"Organizations or their affiliates, or to a third par ty vendor, and may vary depending upon the nature of the event or","page_number":155,"box":{"x":69,"y":721,"width":817,"height":11}},{"id":"62ea470d-6d8a-442f-a99b-1b91aa14b3d3","block_type":"box","text":"the relationship and are subject to applicable laws and regulations, including the rules of applicable self-regulatory","page_number":155,"box":{"x":68,"y":736,"width":819,"height":12}},{"id":"5661930a-5264-4bbb-89cb-1c9ff4fd6641","block_type":"box","text":"organizations, such as FINRA. BlackRock may pay Service Organizations additional types of incentive compensation","page_number":155,"box":{"x":69,"y":751,"width":823,"height":12}},{"id":"6f05fbe2-f2e0-4e4b-bc1b-ee49be9a5e8b","block_type":"box","text":"in the future to the extent not prohibited by applicable laws or regulations.","page_number":155,"box":{"x":70,"y":766,"width":526,"height":12}},{"id":"77754c8d-c79b-4c41-9a50-af026a0337e7","block_type":"box","text":"Separately, BlackRock has developed proprietary tools, calculators and related interactive or digital content that","page_number":155,"box":{"x":102,"y":789,"width":797,"height":11}},{"id":"f1d498a0-2a3b-44df-b584-fa0ef7bfcdf4","block_type":"box","text":"is made available through the www.BlackRock.com website at no additional cost to Service Organizations. BlackRock","page_number":155,"box":{"x":70,"y":804,"width":833,"height":12}},{"id":"028bf23b-71fb-4e3e-99b9-2575395ea8b8","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as par t of its customary","page_number":155,"box":{"x":69,"y":819,"width":817,"height":12}},{"id":"7e31ffd9-496c-4d08-9320-14d762cb6baa","block_type":"box","text":"digital marketing suppor t and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":155,"box":{"x":69,"y":835,"width":815,"height":11}},{"id":"d7a04264-ab19-4d35-8d16-8b906f462c5f","block_type":"box","text":"traded products.","page_number":155,"box":{"x":68,"y":850,"width":116,"height":11}},{"id":"89f13638-d98c-4cf0-8188-2301a3d48939","block_type":"box","text":"F. Conflicts","page_number":155,"box":{"x":102,"y":872,"width":78,"height":9}},{"id":"99faf8fa-8ac0-4ade-92b1-9eb3d48c442a","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":155,"box":{"x":101,"y":895,"width":710,"height":11}},{"id":"e356349c-5e87-42db-a540-b25b80239a86","block_type":"box","text":"arrangements may be an impor tant factor in the Service Organization’s willingness to suppor t the sale of a Fund","page_number":155,"box":{"x":69,"y":910,"width":803,"height":11}},{"id":"2ed6e1c7-f41d-4d8d-84d2-22f264c628e8","block_type":"box","text":"II-115","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f5711f36-ffe8-4a7c-b371-2c6c167dfba0","block_type":"box","text":"NM1026U-5982643-155/241","page_number":155,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"73687e05-8aa2-4d90-b38e-b63a36c860f6","block_type":"box","text":"and/or par ticular share class through its distribution system or to per form services with respect to such Fund.","page_number":156,"box":{"x":69,"y":45,"width":788,"height":11}},{"id":"95a320f6-037d-4aa5-8fbd-7e3f478ec81e","block_type":"box","text":"Additional Payments and other incentive arrangements may also be impor tant factors in the Service Organization’s","page_number":156,"box":{"x":68,"y":60,"width":819,"height":11}},{"id":"9a1070b0-b2ce-4a1f-b0bb-9dd486f938d3","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":156,"box":{"x":68,"y":75,"width":473,"height":11}},{"id":"84e41dd9-a8d2-417d-adca-7c003106a9f4","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":156,"box":{"x":102,"y":98,"width":793,"height":11}},{"id":"3b53a6ce-e94a-4bc4-9eec-07083217fec9","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":156,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"a36310f9-f5aa-426b-b0a2-d7291c09e9c9","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":156,"box":{"x":68,"y":128,"width":833,"height":11}},{"id":"43d7ee83-08e3-4a5c-a449-7e1dd5ef58f7","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":156,"box":{"x":70,"y":143,"width":830,"height":11}},{"id":"43afdfe8-a9e3-4215-a124-2b0e38d393dd","block_type":"box","text":"Service Organizations may have financial incentives for recommending a par ticular Fund, share class or fund","page_number":156,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"5ce08e06-0d2e-4f8a-a941-77f82d296621","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":156,"box":{"x":69,"y":181,"width":794,"height":11}},{"id":"f541a9a8-8833-4db4-abad-315093c14a8d","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":156,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"f6e8dfa1-2ce4-4c3b-9375-ee79387aa123","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":156,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"5f0ee462-7b6c-4177-add4-4b6a4158b921","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":156,"box":{"x":69,"y":226,"width":723,"height":11}},{"id":"80213ea9-a8b3-40e7-a3a3-e3036f5a74bc","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":156,"box":{"x":102,"y":249,"width":759,"height":11}},{"id":"7b57848f-db22-4a9f-8529-e53a3532297f","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":156,"box":{"x":69,"y":264,"width":760,"height":11}},{"id":"2cf3cd7d-0800-4149-8f3c-ff680d2ecf05","block_type":"box","text":"appropriate.","page_number":156,"box":{"x":69,"y":279,"width":84,"height":11}},{"id":"6d98a77b-ebb0-4b60-bc6b-5d28837909d4","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":156,"box":{"x":160,"y":279,"width":738,"height":11}},{"id":"039d7b96-2276-4e4e-81a5-add2d284dbf5","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":156,"box":{"x":69,"y":294,"width":795,"height":11}},{"id":"7a64da19-0153-42ff-9f7d-863452db3514","block_type":"box","text":"described above.","page_number":156,"box":{"x":69,"y":309,"width":122,"height":9}},{"id":"3ff6ee17-35e7-46b3-977c-b3916ea8691a","block_type":"box","text":"REDEMPTION OF SHARES","page_number":156,"box":{"x":385,"y":339,"width":208,"height":9}},{"id":"432d45da-5ff3-4b28-a466-353a72af2e96","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":156,"box":{"x":102,"y":361,"width":798,"height":12}},{"id":"205da79d-81c3-4a04-8bcd-0d54874ce463","block_type":"box","text":"the right to redeem some or all of its shares in-kind under unusual circumstances (valued in the same way as they","page_number":156,"box":{"x":68,"y":377,"width":817,"height":11}},{"id":"9f97dd1d-103d-4c60-a5c0-128e8d0f54d2","block_type":"box","text":"would be valued for purposes of computing a Fund’s NAV), in order to protect the interests of remaining shareholders,","page_number":156,"box":{"x":68,"y":392,"width":840,"height":11}},{"id":"f6b2241e-9f5e-4355-a784-f2b250efd463","block_type":"box","text":"or to accommodate a request by a par ticular shareholder that does not adversely affect the interest of the remaining","page_number":156,"box":{"x":69,"y":407,"width":834,"height":11}},{"id":"e19c3050-2492-4211-9920-83004f860f79","block_type":"box","text":"shareholders, by delivery of securities and other assets selected from the Fund’s por tfolio holdings at its discretion.","page_number":156,"box":{"x":69,"y":422,"width":829,"height":11}},{"id":"49c3cf70-533c-4bd2-bf93-43eae70bdcbd","block_type":"box","text":"In-kind payment means payment will be made in por tfolio securities and other assets rather than cash. If this occurs,","page_number":156,"box":{"x":70,"y":437,"width":834,"height":11}},{"id":"f21f48f6-131b-430f-a4d6-ec636263945b","block_type":"box","text":"the redeeming shareholder might incur brokerage or other transaction costs to conver t the securities and other","page_number":156,"box":{"x":68,"y":452,"width":793,"height":11}},{"id":"c527a542-c476-4817-b8f9-03ebbb87d602","block_type":"box","text":"assets to cash. In an in-kind redemption, a pro rata por tion of a Fund’s por tfolio holdings will generally be distributed","page_number":156,"box":{"x":69,"y":467,"width":834,"height":12}},{"id":"b49ee358-47a6-4693-a70e-2b1141960ea7","block_type":"box","text":"to the redeeming shareholder, but an Index Fund may, under cer tain circumstances, deviate from pro rata redemption","page_number":156,"box":{"x":68,"y":482,"width":838,"height":12}},{"id":"ae492fb8-8f71-4775-871c-b4c7d7885a9b","block_type":"box","text":"if the securities and other assets to be distributed are deemed to be a fair representation of por tfolio holdings and","page_number":156,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"7f73740d-ff78-4e2f-97ff-55b9351e1796","block_type":"box","text":"the interests of the remaining shareholders in the Index Fund are not diluted. Each Fund has elected, however, to be","page_number":156,"box":{"x":68,"y":513,"width":831,"height":11}},{"id":"e78d70e9-c868-429e-aad5-a17174cbd3bf","block_type":"box","text":"governed by Rule 18f-1 under the Investment Company Act so that the Fund is obligated to redeem its shares solely","page_number":156,"box":{"x":68,"y":528,"width":828,"height":11}},{"id":"7a4aff84-a14c-4ce5-9f52-1e54f35db500","block_type":"box","text":"in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period for any shareholder of the Fund. The","page_number":156,"box":{"x":70,"y":542,"width":826,"height":12}},{"id":"933dc8f5-614e-4045-b1c4-347d366447de","block_type":"box","text":"redemption price is the NAV per share next determined after the initial receipt of proper notice of redemption. The","page_number":156,"box":{"x":69,"y":558,"width":810,"height":11}},{"id":"9d692415-06d4-41b2-aef9-c52f8bb5d4e5","block_type":"box","text":"value of shares of each Fund at the time of redemption may be more or less than your cost at the time of purchase,","page_number":156,"box":{"x":68,"y":573,"width":827,"height":11}},{"id":"07848743-3fb6-4cf7-a01f-ffea2b3ba418","block_type":"box","text":"depending in par t on the market value of the securities held by the Fund at such time. Except for any CDSC that may","page_number":156,"box":{"x":69,"y":588,"width":832,"height":12}},{"id":"2163097e-9e7b-4086-a803-9e5ab80b83b9","block_type":"box","text":"be applicable, there will be no redemption charge if your redemption request is sent directly to the Transfer Agent. If","page_number":156,"box":{"x":69,"y":603,"width":828,"height":12}},{"id":"5d21ea79-1060-4950-a1fe-ac00c3ea122d","block_type":"box","text":"you are liquidating your holdings you will receive all dividends reinvested through the date of redemption.","page_number":156,"box":{"x":68,"y":618,"width":746,"height":12}},{"id":"57ff38c2-3c24-4efd-9082-0b14376bc2f8","block_type":"box","text":"The right to redeem shares may be suspended or payment upon redemption may be delayed for more than seven","page_number":156,"box":{"x":101,"y":641,"width":807,"height":11}},{"id":"df9fd7a8-a5ea-4fb6-a21c-bf7cb3d106fe","block_type":"box","text":"days only (i) for any period during which trading on the NYSE is restricted as determined by the Commission or during","page_number":156,"box":{"x":69,"y":656,"width":835,"height":12}},{"id":"ad01177f-7702-45f6-85fd-478cbc6eb629","block_type":"box","text":"which the NYSE is closed (other than customary weekend and holiday closings), (ii) for any period during which an","page_number":156,"box":{"x":68,"y":671,"width":811,"height":12}},{"id":"53b835ba-df8c-4163-a6fc-8ba674be9b5d","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":156,"box":{"x":69,"y":686,"width":741,"height":12}},{"id":"71bcc53d-a7ea-4887-952f-04da31045f7a","block_type":"box","text":"determination of the NAV of a Fund is not reasonably practicable, or (iii) for such other periods as the Commission","page_number":156,"box":{"x":69,"y":702,"width":813,"height":11}},{"id":"81426506-148d-4019-bd55-6c49dd261c99","block_type":"box","text":"may by order permit for the protection of shareholders of the Fund. (A Fund may also suspend or postpone the","page_number":156,"box":{"x":69,"y":717,"width":787,"height":11}},{"id":"2ad0b396-c9c5-40c2-8f3d-b826103c0b3f","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":156,"box":{"x":69,"y":732,"width":685,"height":11}},{"id":"334efcb5-9ec8-4c2b-9322-a27e05043e0c","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":156,"box":{"x":102,"y":755,"width":798,"height":11}},{"id":"af837558-80c0-450b-9659-6be43e267fcc","block_type":"box","text":"credit with a syndicate of banks that is intended to provide the Fund with a temporary source of cash to be used to","page_number":156,"box":{"x":69,"y":770,"width":820,"height":11}},{"id":"269e154d-c78a-41e9-b6a5-b07fa51c5298","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":156,"box":{"x":69,"y":785,"width":653,"height":11}},{"id":"dc4e70c0-2b0f-489e-a0c2-3954b3f473e2","block_type":"box","text":"Each Fund may redeem shares involuntarily to reimburse the Fund for any loss sustained by reason of the failure","page_number":156,"box":{"x":102,"y":807,"width":803,"height":12}},{"id":"41461e1b-30fe-4287-b3c0-72684929a66a","block_type":"box","text":"of a shareholder to make full payment for shares purchased by the shareholder or to collect any charge relating to a","page_number":156,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"9b6cf3d4-5b19-44f9-a544-ba0e68eb3d68","block_type":"box","text":"transaction effected for the benefit of a shareholder. Each Fund reserves the express right to redeem shares of the","page_number":156,"box":{"x":68,"y":838,"width":824,"height":11}},{"id":"63cd79e8-dd9a-401b-8378-c8322354e65e","block_type":"box","text":"Fund involuntarily at any time if the Fund’s Board of Directors determines, in its sole discretion, that failure to do so","page_number":156,"box":{"x":70,"y":853,"width":825,"height":11}},{"id":"eb921209-6ea9-453e-9f59-8912689c4b1e","block_type":"box","text":"may have adverse consequences to the holders of shares in the Fund. Upon such redemption the holders of shares","page_number":156,"box":{"x":69,"y":868,"width":825,"height":11}},{"id":"28a126e6-6575-4896-9f3a-ee676af9441e","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":156,"box":{"x":69,"y":883,"width":823,"height":11}},{"id":"f3c3958e-6bd8-4b7e-93d3-640cca689837","block_type":"box","text":"II-116","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0c95c221-aab6-4969-9d34-27c4004017f1","block_type":"box","text":"NM1026U-5982643-156/241","page_number":156,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"01483c64-03e8-4d6a-a678-98b3a4d6291b","block_type":"box","text":"Redemption","page_number":157,"box":{"x":69,"y":45,"width":86,"height":11}},{"id":"1357f77a-d45d-42fd-b6cd-60b3e22d8d8b","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":157,"box":{"x":70,"y":67,"width":481,"height":11}},{"id":"bc36e2ec-1210-437d-8ac4-cb9608f47fd8","block_type":"box","text":"Redeem by Telephone:","page_number":157,"box":{"x":102,"y":90,"width":162,"height":11}},{"id":"4c139a2e-fa5a-4806-be54-57fc86bac26b","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":157,"box":{"x":270,"y":90,"width":571,"height":11}},{"id":"bea7a8dd-c87f-4eb7-bb41-779a2da0859d","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":157,"box":{"x":68,"y":104,"width":829,"height":12}},{"id":"cc6d36c0-a63c-4ea9-983d-b1d33b203bf0","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":157,"box":{"x":69,"y":120,"width":798,"height":12}},{"id":"5b0d34b4-a7d6-4826-a5bb-cc6f31aca643","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":157,"box":{"x":69,"y":135,"width":838,"height":11}},{"id":"9bbe2ba6-f06d-43ef-af70-e8449540be1e","block_type":"box","text":"verified banking information on file; or (ii) the proceeds are not paid to the record owner at the record address, must","page_number":157,"box":{"x":68,"y":150,"width":831,"height":12}},{"id":"73d28658-02b2-4fc5-8ca5-a4833e50005b","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":157,"box":{"x":69,"y":166,"width":822,"height":11}},{"id":"1c4f0587-06fe-472d-9151-313c099e94d0","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":157,"box":{"x":70,"y":181,"width":791,"height":11}},{"id":"c23d7360-0fdf-4f69-9a31-237e21fcd848","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":157,"box":{"x":68,"y":196,"width":818,"height":11}},{"id":"8c5d5756-ee4e-4c02-a20d-3ad8988714e4","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":157,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"c2864587-37d2-4672-8cc7-d13123261c8a","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":157,"box":{"x":69,"y":226,"width":803,"height":11}},{"id":"fc28a2e7-b26d-419d-bf7c-7c9d1d364df6","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":157,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"4f958fe2-89b3-4b3a-9b34-fee9b657659f","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":157,"box":{"x":69,"y":256,"width":825,"height":12}},{"id":"2175c387-c910-4167-a15d-1568b6ffba48","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":157,"box":{"x":68,"y":271,"width":840,"height":12}},{"id":"9a7c3f53-0a53-4ffc-b683-c171dd6af54e","block_type":"box","text":"will not be accepted. A notary public seal will not be acceptable. Generally, a properly signed written request with any","page_number":157,"box":{"x":68,"y":287,"width":835,"height":11}},{"id":"0a06d6a7-3ae6-4d37-b9bd-1fa77dd3d416","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":157,"box":{"x":69,"y":302,"width":828,"height":11}},{"id":"b0fd74a0-1fb9-4e78-89ea-692a5fd18a66","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":157,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"21116414-e812-44cd-9dec-ad739e1f1c1b","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":157,"box":{"x":70,"y":332,"width":603,"height":11}},{"id":"ca72e9b0-9452-4215-b4fa-732af30d54ed","block_type":"box","text":"If you make a redemption request before a Fund has collected payment for the purchase of shares, the Fund","page_number":157,"box":{"x":102,"y":355,"width":774,"height":11}},{"id":"5437dee2-70b8-4771-9c43-8ce24b86f550","block_type":"box","text":"may delay mailing your proceeds. This delay will usually not exceed ten days. A Fund, its Administrators and the","page_number":157,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"d7389274-4dd9-4813-9a69-7ea6b5a612d1","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":157,"box":{"x":70,"y":385,"width":821,"height":11}},{"id":"eaa1d178-c83b-46ed-b5f2-9f98131be895","block_type":"box","text":"Telephone redemption requests will not be honored if: (i) the accountholder is deceased, (ii) the proceeds are to be","page_number":157,"box":{"x":68,"y":400,"width":823,"height":11}},{"id":"7ac6b55d-206c-4326-a658-89f2fb947c7e","block_type":"box","text":"sent to someone other than the shareholder of record, (iii) a Fund does not have verified information on file, (iv) the","page_number":157,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"4f6b6cce-d706-478f-ae57-7e9e31d0aa38","block_type":"box","text":"request is by an individual other than the accountholder of record, (v) the account is held by joint tenants who are","page_number":157,"box":{"x":69,"y":430,"width":809,"height":11}},{"id":"7d4577dc-9a44-484d-8e1c-65d30e14efd0","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":157,"box":{"x":69,"y":445,"width":833,"height":12}},{"id":"a9ffff09-2a98-47bf-aaa5-db70ef650a36","block_type":"box","text":"on the account, or (vii) to protect against fraud, if the caller is unable to provide the account number, the name and","page_number":157,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"2565113f-d9be-4ef6-b610-c6e335cfed2a","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":157,"box":{"x":69,"y":476,"width":785,"height":11}},{"id":"ef963cce-77f1-4a6d-b45e-5b06301364c7","block_type":"box","text":"service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions that","page_number":157,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"bd54e60f-3aa8-4fee-a941-3531f8664942","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":157,"box":{"x":69,"y":506,"width":782,"height":11}},{"id":"802a8a70-2964-4e19-ad89-ce079dffd9d4","block_type":"box","text":"honored, signature approval from all shareholders of record on the account must be obtained. The Fund may refuse a","page_number":157,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"8a3ccb32-6dc9-40d2-9cb6-621ea6273f81","block_type":"box","text":"telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market","page_number":157,"box":{"x":68,"y":536,"width":837,"height":11}},{"id":"3136bf88-62f3-46ed-8d65-be58a0b4a427","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":157,"box":{"x":69,"y":551,"width":800,"height":11}},{"id":"dfc7ab51-5565-4e8d-9a28-50acc2709d02","block_type":"box","text":"Redemption orders for Institutional Shares placed prior to 4:00 p.m. (Eastern time) on a business day will be","page_number":157,"box":{"x":102,"y":574,"width":776,"height":11}},{"id":"1ae151f5-37cb-4183-8a09-a404110de06f","block_type":"box","text":"priced at the NAV determined that day. If redemption orders are received by 4:00 p.m. (Eastern time) on a business","page_number":157,"box":{"x":70,"y":589,"width":823,"height":11}},{"id":"eae64023-30cd-45d9-9079-c985b664dba8","block_type":"box","text":"day, payment for redeemed Institutional Shares will normally be wired in Federal Funds on the next business day. If","page_number":157,"box":{"x":69,"y":604,"width":820,"height":11}},{"id":"642be095-3a02-4913-b46d-613f6f2763d1","block_type":"box","text":"the Federal Reserve Bank of Philadelphia is not open on the business day following receipt of the redemption order,","page_number":157,"box":{"x":68,"y":619,"width":826,"height":11}},{"id":"829c66e0-4e7b-42a3-b72c-f8676c63d188","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":157,"box":{"x":68,"y":634,"width":817,"height":12}},{"id":"db516200-032c-4a1c-a8be-17708152f4e8","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":157,"box":{"x":70,"y":649,"width":648,"height":11}},{"id":"89b8aee6-0706-4c28-b7b0-1d4228d2937f","block_type":"box","text":"Redeem by VRU:","page_number":157,"box":{"x":102,"y":672,"width":120,"height":11}},{"id":"de8f147d-7261-4bd7-90f3-f110e67ddeb3","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":157,"box":{"x":229,"y":672,"width":667,"height":11}},{"id":"06625219-b513-46be-af81-85319922ad40","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":157,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"e7e0e80a-2bb6-489b-a265-d56ea6222254","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":157,"box":{"x":68,"y":702,"width":644,"height":12}},{"id":"57be3fcc-7f6f-4fa8-a4a2-8faf1322ea00","block_type":"box","text":"Redeem by Internet:","page_number":157,"box":{"x":102,"y":725,"width":147,"height":11}},{"id":"58d10e94-03ed-4180-91b4-ed3dd94d0861","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":157,"box":{"x":255,"y":725,"width":637,"height":11}},{"id":"1a4653c8-f6e9-44cf-93bb-e022ea9e1c5d","block_type":"box","text":"BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to","page_number":157,"box":{"x":70,"y":740,"width":836,"height":11}},{"id":"f619237b-27c2-43d2-8b48-c16d464d7391","block_type":"box","text":"the bank account of record. Payment for shares redeemed by Internet may be made for non-retirement accounts up","page_number":157,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"cf05c143-7378-4e0d-a49f-93514bd9d70c","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":157,"box":{"x":68,"y":770,"width":789,"height":12}},{"id":"4eeaaeb3-247b-490e-80e2-30b8ed7cdd26","block_type":"box","text":"institutional investors.","page_number":157,"box":{"x":70,"y":786,"width":155,"height":8}},{"id":"f3206761-d789-4fd8-a1e8-70e828e9f441","block_type":"box","text":"Redeem in Writing:","page_number":157,"box":{"x":102,"y":808,"width":137,"height":11}},{"id":"1cea8c19-dd8e-443b-9d6c-3d4e05e1ba8c","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":157,"box":{"x":247,"y":808,"width":639,"height":11}},{"id":"d9aaa8b8-47f9-4aee-a994-927652c7108e","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":157,"box":{"x":68,"y":823,"width":831,"height":12}},{"id":"b6123d60-1a8b-4882-8665-2eea8f7816eb","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":157,"box":{"x":68,"y":838,"width":745,"height":12}},{"id":"a7ab1732-9722-44d3-a7db-95de7045bd16","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":157,"box":{"x":69,"y":853,"width":764,"height":12}},{"id":"e8c055ac-feda-45b1-a275-35396f2fe792","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":157,"box":{"x":69,"y":869,"width":831,"height":11}},{"id":"fa85204f-c197-40aa-97bf-a11fcc5b85a5","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":157,"box":{"x":68,"y":884,"width":794,"height":11}},{"id":"74dc6b42-e6da-4583-8424-01c68e2adb9f","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":157,"box":{"x":68,"y":899,"width":782,"height":11}},{"id":"d4d37f7a-afb7-4369-9b49-025acd5e880a","block_type":"box","text":"II-117","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"364275ac-2efa-4853-9163-532d2498f564","block_type":"box","text":"NM1026U-5982643-157/241","page_number":157,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"2c210b7f-dd99-4524-8042-b65309e00c75","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":158,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"e4f74580-dbf0-4e67-b44f-22fe397b7724","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":158,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"a4f881ac-55e5-4a91-9215-359da8c26e1c","block_type":"box","text":"or wire to the bank account of record.","page_number":158,"box":{"x":69,"y":75,"width":266,"height":9}},{"id":"efd426aa-dfe1-4edb-8104-73250be45644","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":158,"box":{"x":102,"y":98,"width":802,"height":11}},{"id":"0866e8f4-3dbb-4a11-89e6-e772aa1a87c4","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":158,"box":{"x":69,"y":113,"width":489,"height":11}},{"id":"f651c2fb-b454-496c-9ea6-9703700ad8df","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":158,"box":{"x":101,"y":135,"width":668,"height":12}},{"id":"2f6fded0-a698-440b-aaf1-93fe84e4d951","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":158,"box":{"x":102,"y":158,"width":800,"height":11}},{"id":"14b43889-546e-444f-b430-513b96d72ebe","block_type":"box","text":"of receipt of the proper notice of redemption. A Fund may delay the mailing of a redemption check until good payment","page_number":158,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"bc40cc90-5ea5-464e-840e-ad21e4b3a714","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":158,"box":{"x":69,"y":188,"width":811,"height":11}},{"id":"f1d1d540-9799-4194-bcdf-5fafdb451876","block_type":"box","text":"shares, which delay will usually not exceed 10 days. If your account is held directly with the Transfer Agent and","page_number":158,"box":{"x":69,"y":203,"width":789,"height":12}},{"id":"56946335-f064-4939-bccb-a2e32d8b1831","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":158,"box":{"x":69,"y":218,"width":775,"height":12}},{"id":"08c943fe-50d1-404b-9405-fc786f9ee664","block_type":"box","text":"redeemed by the Fund.","page_number":158,"box":{"x":69,"y":234,"width":162,"height":11}},{"id":"d438db0a-14e3-455d-8e4d-53e8cca2632c","block_type":"box","text":"Note on Low Balance Accounts.","page_number":158,"box":{"x":102,"y":257,"width":223,"height":8}},{"id":"9b5e2250-a8d1-4db3-b49c-60cd568d3dc4","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":158,"box":{"x":332,"y":256,"width":503,"height":12}},{"id":"9584ebaa-3508-45e8-bc2a-d066f5f3857c","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":158,"box":{"x":70,"y":271,"width":752,"height":12}},{"id":"2f439d91-c4a4-46cb-b3cd-85e833708e0b","block_type":"box","text":"Minimum”), and may redeem the shares in your account if the NAV of those shares in your account falls below $500","page_number":158,"box":{"x":70,"y":286,"width":829,"height":12}},{"id":"8bb40ca1-475d-49e0-9676-34a926d3df97","block_type":"box","text":"for any reason, including market fluctuation.","page_number":158,"box":{"x":68,"y":302,"width":313,"height":11}},{"id":"f2f3a426-22a2-4cda-bede-34e516842b9c","block_type":"box","text":"You will be notified that the value of your account is less than the Fund Minimum before the Fund makes any","page_number":158,"box":{"x":101,"y":324,"width":775,"height":11}},{"id":"d8ebfc4b-0294-4a0d-afed-63a79a016731","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":158,"box":{"x":70,"y":339,"width":773,"height":12}},{"id":"ba639fc7-ddbc-4c3c-8405-85ffc0a2bb9d","block_type":"box","text":"investment in order to bring the value of your account to at least $500 before the Fund makes an involuntary","page_number":158,"box":{"x":70,"y":354,"width":776,"height":12}},{"id":"d287397c-e443-429d-92ee-9fcf1e31edbc","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":158,"box":{"x":69,"y":370,"width":834,"height":11}},{"id":"07ad51a3-f511-4fa1-b834-16a26d4ae2e2","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":158,"box":{"x":69,"y":385,"width":811,"height":11}},{"id":"7d5a61ff-6af4-4c13-9b10-144018db40a0","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":158,"box":{"x":69,"y":400,"width":435,"height":11}},{"id":"5c57c83a-d1bf-463d-b7cf-dd8f11e8dbf7","block_type":"box","text":"Repurchase","page_number":158,"box":{"x":69,"y":430,"width":85,"height":11}},{"id":"e20025ab-451e-4849-8728-cb63699670fe","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":158,"box":{"x":101,"y":453,"width":800,"height":11}},{"id":"db206473-a49c-4499-9c39-4b8054cd6b64","block_type":"box","text":"priced at the NAV of the Fund next determined after receipt of the repurchase order by a Selling Dealer that has been","page_number":158,"box":{"x":70,"y":468,"width":833,"height":11}},{"id":"af096151-3103-4db5-986b-a3794b232367","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":158,"box":{"x":69,"y":483,"width":822,"height":11}},{"id":"45aca925-d4b4-4230-a222-c86a47db3d28","block_type":"box","text":"prior to the close of business on the NYSE (generally, the NYSE closes at 4:00 p.m. Eastern time), on the day the","page_number":158,"box":{"x":70,"y":498,"width":809,"height":11}},{"id":"4e55d651-5452-48d6-903d-bcd4081dee5c","block_type":"box","text":"order is placed, which includes orders received after the close of business on the previous day, the repurchase price","page_number":158,"box":{"x":69,"y":513,"width":831,"height":11}},{"id":"a94317d9-95ef-46bb-82e0-aa268a7dd409","block_type":"box","text":"is the NAV determined as of the close of business on the NYSE on that day. If the orders for repurchase are not","page_number":158,"box":{"x":70,"y":528,"width":796,"height":12}},{"id":"abda1024-617b-4b75-8249-a25ae02439ff","block_type":"box","text":"received by the Selling Dealer before the close of business on the NYSE, such orders are deemed received on the","page_number":158,"box":{"x":69,"y":543,"width":812,"height":12}},{"id":"3ea837b9-3f99-47b4-a684-7b59bf121c15","block_type":"box","text":"next business day.","page_number":158,"box":{"x":69,"y":559,"width":130,"height":11}},{"id":"83ee383e-400b-4bab-90e3-a1ae210a8a47","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":158,"box":{"x":101,"y":581,"width":783,"height":12}},{"id":"b5457986-48e7-4ca4-b246-926ef1e51090","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":158,"box":{"x":69,"y":596,"width":813,"height":12}},{"id":"86c49bbb-5464-417a-9c35-281f743ecbce","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":158,"box":{"x":69,"y":612,"width":832,"height":11}},{"id":"dd281bd9-8e3e-4af2-bd05-6c6a2d17d542","block_type":"box","text":"impose a transaction charge for transmitting the notice of repurchase to the Fund. Each Fund reserves the right to","page_number":158,"box":{"x":70,"y":627,"width":814,"height":11}},{"id":"b7c88bc6-4783-461d-8295-eacbf33920a9","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":158,"box":{"x":69,"y":642,"width":788,"height":11}},{"id":"1a809cd2-8cad-4051-a44a-9e3c5b1d6dc9","block_type":"box","text":"redeem shares as set out above.","page_number":158,"box":{"x":69,"y":657,"width":235,"height":9}},{"id":"881aaec1-b66b-4785-9603-318f6e669f9f","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":158,"box":{"x":69,"y":687,"width":440,"height":11}},{"id":"8f2c4752-4ffe-4d0e-b965-de0a207eb00b","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":158,"box":{"x":102,"y":710,"width":791,"height":11}},{"id":"71c59825-db78-42fc-9fc8-f54eb33b965b","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":158,"box":{"x":69,"y":725,"width":815,"height":11}},{"id":"14d6468c-96a1-4327-b720-0c9dfcd87246","block_type":"box","text":"Shares of the same or another BlackRock fund without paying a front-end sales charge. This right may be exercised","page_number":158,"box":{"x":69,"y":740,"width":822,"height":11}},{"id":"f0f7754f-eaa2-4bb0-a016-3a6c584ec5f1","block_type":"box","text":"within 90 days of the redemption, provided that the Investor A or Investor P Shares, as applicable, of that fund is","page_number":158,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"54e3124e-feac-4780-8c66-3bdc056d8d0d","block_type":"box","text":"currently open to new investors or the shareholder has a current account in that closed fund. Shares will be","page_number":158,"box":{"x":69,"y":770,"width":768,"height":11}},{"id":"419e64fe-1499-49ea-8797-048757e204f7","block_type":"box","text":"purchased at the NAV calculated at the close of trading on the day the request is received in good order. To exercise","page_number":158,"box":{"x":70,"y":785,"width":827,"height":12}},{"id":"8696c215-0522-434a-809c-490387c9d996","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":158,"box":{"x":68,"y":801,"width":809,"height":11}},{"id":"0e9ae22f-176c-40f1-ae83-b3238596ee61","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":158,"box":{"x":69,"y":816,"width":764,"height":11}},{"id":"ef35dd7e-bca2-4525-b8ef-1ef98f203a81","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":158,"box":{"x":69,"y":831,"width":400,"height":11}},{"id":"556527af-ef86-4587-b566-502b0f280152","block_type":"box","text":"II-118","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fde16279-c802-43d5-b87c-ade13de825ac","block_type":"box","text":"NM1026U-5982643-158/241","page_number":158,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"dedf74eb-74a7-42bf-8d93-d42023ee81bf","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":159,"box":{"x":384,"y":45,"width":210,"height":10}},{"id":"01d55ec2-503b-41a9-a62f-1a6b6a7d53c3","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":159,"box":{"x":102,"y":68,"width":747,"height":11}},{"id":"242f00c5-0d72-4956-b537-3f840d8e9c4a","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":159,"box":{"x":70,"y":83,"width":781,"height":11}},{"id":"0ec61664-dd2e-4ec4-aca5-dae9e17c4487","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":159,"box":{"x":68,"y":98,"width":836,"height":11}},{"id":"7e82bf2c-db88-41ee-8380-8e5dc2f37c1a","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":159,"box":{"x":69,"y":113,"width":641,"height":11}},{"id":"5f87d31a-5e6c-42ea-a624-3f33c4412c32","block_type":"box","text":"Investment Account","page_number":159,"box":{"x":69,"y":144,"width":146,"height":9}},{"id":"e87f5a1d-a5f1-4dc0-9514-880a33a8780e","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":159,"box":{"x":102,"y":166,"width":774,"height":11}},{"id":"9d01f80d-c009-4eb2-8a87-8926139f7cb6","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":159,"box":{"x":70,"y":181,"width":796,"height":12}},{"id":"3b85a993-cdd5-4bc9-831a-1509598e4657","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":159,"box":{"x":70,"y":196,"width":807,"height":12}},{"id":"6740c80e-78f9-4121-ad78-fac253bcb095","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":159,"box":{"x":68,"y":212,"width":830,"height":11}},{"id":"53920b94-7894-4c9d-99a6-76377da3426b","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":159,"box":{"x":69,"y":227,"width":829,"height":11}},{"id":"a4fae1cc-d5e7-4e99-bf22-232bb24e1f71","block_type":"box","text":"the Transfer Agent you may make additions to it at any time by mailing a check directly to the Transfer Agent. Each","page_number":159,"box":{"x":68,"y":242,"width":815,"height":11}},{"id":"af58dc36-937c-42a6-9024-112cc466e9b6","block_type":"box","text":"Fund limits purchases by personal check to $500,000 per trade. You may also maintain an account through a","page_number":159,"box":{"x":70,"y":256,"width":781,"height":12}},{"id":"937ca0e2-0b06-48f5-bfd4-6f66d5f1fb2b","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":159,"box":{"x":69,"y":272,"width":825,"height":11}},{"id":"4001a74d-843e-4dcd-9b00-e67d3dac2e3f","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":159,"box":{"x":69,"y":287,"width":785,"height":11}},{"id":"22dae5bb-8ae5-4889-9105-6cdd38b539c7","block_type":"box","text":"automatically at the Transfer Agent.","page_number":159,"box":{"x":69,"y":302,"width":251,"height":12}},{"id":"0c6491d4-937a-4692-9938-2a365b2f0146","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":159,"box":{"x":101,"y":325,"width":750,"height":11}},{"id":"8b16cb05-8ed8-426b-bf7f-0409fb091631","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":159,"box":{"x":69,"y":340,"width":797,"height":11}},{"id":"345bbdb1-c990-41e2-8385-e84d391e25e2","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":159,"box":{"x":69,"y":355,"width":797,"height":11}},{"id":"7bc3fcee-d0ce-4c5f-b41f-5894295a59e9","block_type":"box","text":"coordinated by the new firm. If you wish to transfer your shares to a securities dealer or other financial intermediary","page_number":159,"box":{"x":69,"y":370,"width":826,"height":11}},{"id":"fb038b5c-2db8-456d-b9fe-cca65f24cef8","block_type":"box","text":"that has not entered into an agreement with the Distributor, you must either (i) redeem your shares, paying any","page_number":159,"box":{"x":68,"y":386,"width":792,"height":11}},{"id":"2edd2a37-e84e-4caa-904c-83688d6b951f","block_type":"box","text":"applicable CDSC or (ii) continue to maintain an Investment Account at the Transfer Agent for those shares. You also","page_number":159,"box":{"x":69,"y":401,"width":824,"height":11}},{"id":"9145ee70-de07-4dfb-98f5-6b1e2e1e14df","block_type":"box","text":"may request that the new securities dealer or other financial intermediary maintain the shares in an account at the","page_number":159,"box":{"x":69,"y":416,"width":820,"height":11}},{"id":"8e85bcc6-4675-4aa2-b336-3297e81dbfa8","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":159,"box":{"x":68,"y":431,"width":833,"height":11}},{"id":"58ee5029-419f-4f61-8899-060142d57271","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":159,"box":{"x":68,"y":446,"width":795,"height":11}},{"id":"f4b485a8-05cb-4aee-b581-215879e4c066","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":159,"box":{"x":70,"y":461,"width":822,"height":11}},{"id":"975a419c-7d2f-45d2-905d-72f96c439bd5","block_type":"box","text":"not be issued physically. Shares are maintained by each Fund on its register maintained by the Transfer Agent and","page_number":159,"box":{"x":69,"y":476,"width":814,"height":11}},{"id":"7a229a2f-9b83-4ff0-8893-737f06529f92","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":159,"box":{"x":68,"y":491,"width":822,"height":12}},{"id":"a958b099-e9c9-4796-800e-5b114182fae9","block_type":"box","text":"issued.","page_number":159,"box":{"x":70,"y":507,"width":49,"height":8}},{"id":"c7f1acf2-3424-4945-ac53-ab1922c5c4eb","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":159,"box":{"x":102,"y":529,"width":785,"height":11}},{"id":"af6e2737-733c-4f43-ac0e-2a59b99389b3","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":159,"box":{"x":68,"y":544,"width":830,"height":11}},{"id":"e9e6dfc5-a903-442c-929a-4444a54c80b0","block_type":"box","text":"that if the new firm will not take delivery of shares of the Fund, you must either redeem the shares (paying any","page_number":159,"box":{"x":68,"y":559,"width":790,"height":12}},{"id":"98ffd017-4361-4a9c-9865-94d6ddf7bde4","block_type":"box","text":"applicable CDSC) so that the cash proceeds can be transferred to the account at the new firm, or you must continue","page_number":159,"box":{"x":69,"y":574,"width":831,"height":12}},{"id":"fc4e6216-8fe4-497e-8a9a-9b7622eb9619","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":159,"box":{"x":68,"y":589,"width":652,"height":12}},{"id":"a8354228-96e3-4233-87b5-dd43b8597d48","block_type":"box","text":"Exchange Privilege","page_number":159,"box":{"x":69,"y":620,"width":138,"height":11}},{"id":"4b0a1ed7-a0e1-4da4-947e-0ed8860207a8","block_type":"box","text":"U.S. shareholders of Investor A, Investor A1, Investor C, Investor P, Class K, Institutional and Class G Shares of","page_number":159,"box":{"x":102,"y":642,"width":797,"height":11}},{"id":"f27153f6-57bb-46ac-ae87-d5e7c9ac3c5c","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":159,"box":{"x":69,"y":658,"width":832,"height":11}},{"id":"1d8b931e-e54b-4682-ab9d-2fc198564119","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":159,"box":{"x":68,"y":672,"width":788,"height":12}},{"id":"31e02b0c-1e64-48db-ba9c-f67889f395c0","block_type":"box","text":"$1,000 if you already have an account in the Fund into which you are exchanging. You may only exchange into a","page_number":159,"box":{"x":69,"y":687,"width":796,"height":12}},{"id":"97f8b42d-d5ee-4421-8c8d-fa3226344555","block_type":"box","text":"share class and a Fund that are open to new investors or in which you have a current account if the class or fund is","page_number":159,"box":{"x":69,"y":703,"width":824,"height":11}},{"id":"61e70e40-6d58-4471-8949-275b5f80fa06","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":159,"box":{"x":69,"y":718,"width":835,"height":11}},{"id":"3dd0ab20-2f12-44d6-9655-eb20888ee922","block_type":"box","text":"into which you wish to make the exchange. Exercise of the exchange privilege is treated as a sale of the exchanged","page_number":159,"box":{"x":70,"y":733,"width":820,"height":11}},{"id":"6c06c4f4-be26-4935-b1de-d58e74343706","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":159,"box":{"x":69,"y":748,"width":600,"height":11}},{"id":"27cffe7d-2c66-47d4-b134-ae66d83f895f","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":159,"box":{"x":102,"y":771,"width":667,"height":11}},{"id":"73c0b1be-510a-47c7-8c01-c51dbbf80fed","block_type":"box","text":"Institutional","page_number":159,"box":{"x":776,"y":771,"width":81,"height":9}},{"id":"d01eeee2-fa3f-4e6d-bb74-4e438076bab0","block_type":"box","text":"Shares are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are","page_number":159,"box":{"x":69,"y":786,"width":746,"height":11}},{"id":"87aed110-2b23-4dcd-899c-d126dc7df1ad","block_type":"box","text":"exchangeable for Investor A Shares of other Funds to the extent such shares are offered by your financial","page_number":159,"box":{"x":69,"y":801,"width":750,"height":11}},{"id":"bdeaed31-6f87-4ae7-8b53-41481a1ca1bc","block_type":"box","text":"intermediary. Investor P Shares are exchangeable for Investor P Shares of other Funds, to the extent such shares are","page_number":159,"box":{"x":70,"y":816,"width":836,"height":12}},{"id":"52f467bc-5c07-48d7-a012-f19afc601a63","block_type":"box","text":"offered by your financial intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G","page_number":159,"box":{"x":69,"y":831,"width":825,"height":12}},{"id":"9576742f-fa26-408f-a6c1-37a7a077cfba","block_type":"box","text":"Shares are exchangeable for Class G Shares of other Funds.","page_number":159,"box":{"x":69,"y":846,"width":431,"height":12}},{"id":"9b03701e-8fd6-4342-9f0d-04eb15722492","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":159,"box":{"x":102,"y":869,"width":800,"height":11}},{"id":"12118d0f-9015-4e54-a211-3423e06ab4e9","block_type":"box","text":"market fund are effected on the basis of relative NAV per Institutional Share. Exchanges of Investor A or Investor A1","page_number":159,"box":{"x":69,"y":884,"width":826,"height":12}},{"id":"89b98196-15c8-48d3-be9a-396d8a0dcf93","block_type":"box","text":"Shares outstanding (“outstanding Investor A Shares”) for Investor A Shares of a second fund, or for shares of a","page_number":159,"box":{"x":69,"y":899,"width":795,"height":12}},{"id":"50305b7d-8561-42e6-b839-4008c24b8b12","block_type":"box","text":"II-119","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9f2681d1-5988-44d6-9487-2fe8ffce1015","block_type":"box","text":"NM1026U-5982643-159/241","page_number":159,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"27b34bdf-7dc1-48e1-b644-3a8c9c6e47b8","block_type":"box","text":"money market fund (“new Investor A Shares”) are effected on the basis of relative NAV per share. Exchanges of","page_number":160,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"81866e1e-66be-44e5-8eff-02cbae7a6acd","block_type":"box","text":"Investor P Shares outstanding for Investor P Shares of a second fund are effected on the basis of relative NAV per","page_number":160,"box":{"x":70,"y":60,"width":814,"height":11}},{"id":"fe68ff65-9b02-4e04-aacb-b778cfe4e355","block_type":"box","text":"share. Exchanges of Class K Shares outstanding for Class K Shares of a second fund, or for shares of a money","page_number":160,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"3bac975a-a6bc-43d6-885b-2f09d7cc54ab","block_type":"box","text":"market fund are effected on the basis of relative NAV per share. Exchanges of Class G Shares outstanding for Class","page_number":160,"box":{"x":69,"y":90,"width":828,"height":11}},{"id":"57e00ba3-e3f2-4edc-92b3-bc413fc6845a","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":160,"box":{"x":69,"y":105,"width":561,"height":11}},{"id":"07bcd209-b2b3-4420-8a05-54454ddceecd","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":160,"box":{"x":102,"y":128,"width":236,"height":11}},{"id":"2bf2f0f9-65e9-4f0e-87f7-e88df0d65339","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding","page_number":160,"box":{"x":344,"y":128,"width":470,"height":11}},{"id":"6eb4cc2f-9f64-420e-904f-a5ee7e99c5bf","block_type":"box","text":"(“outstanding Investor C Shares”) may exchange their shares for Investor C Shares of a second Fund (“new","page_number":160,"box":{"x":69,"y":143,"width":765,"height":11}},{"id":"3beb3b38-397a-4055-b0fb-dfb389cc85de","block_type":"box","text":"Investor C Shares”) or for shares of a money market fund (“new money market fund Shares”) on the basis of relative","page_number":160,"box":{"x":70,"y":158,"width":833,"height":11}},{"id":"14fad319-bbf9-4e60-afb7-7679d2d4df2b","block_type":"box","text":"NAV per share, without the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of","page_number":160,"box":{"x":70,"y":173,"width":825,"height":11}},{"id":"5e6d02ff-6ed2-4aac-a2e2-670efa915bdf","block_type":"box","text":"computing the CDSC upon redemption of new Investor C Shares or new money market fund Shares, as applicable,","page_number":160,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"4dfa1afb-a933-48db-a269-9e6634602743","block_type":"box","text":"the time you held both the exchanged Investor C Shares and the new Investor C Shares or new money market fund","page_number":160,"box":{"x":68,"y":203,"width":818,"height":12}},{"id":"b559aceb-2087-47a3-a05c-2c733a3104ad","block_type":"box","text":"Shares will count towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":160,"box":{"x":69,"y":218,"width":780,"height":12}},{"id":"5e623942-69b1-4961-a36a-4d0e14618e6f","block_type":"box","text":"Exchanges of Service Shares.","page_number":160,"box":{"x":102,"y":241,"width":216,"height":11}},{"id":"8b644917-6d99-4b8b-b45f-4d257c1af254","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered","page_number":160,"box":{"x":324,"y":241,"width":565,"height":11}},{"id":"bcf166d2-f6d0-4dc5-a485-262e00d55b10","block_type":"box","text":"by selected dealer agreements with the Distributor.","page_number":160,"box":{"x":69,"y":257,"width":362,"height":11}},{"id":"03bd4335-945c-470b-bb81-bccd69f38446","block_type":"box","text":"Exchanges for Shares of a Money Market Fund","page_number":160,"box":{"x":102,"y":279,"width":343,"height":11}},{"id":"3fc49573-1d87-4c5f-b5f3-6a8b94655c3f","block_type":"box","text":".","page_number":160,"box":{"x":445,"y":286,"width":2,"height":2}},{"id":"ed78479b-2f7d-4a69-98e1-7c3920cf1f55","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":160,"box":{"x":453,"y":279,"width":455,"height":11}},{"id":"594ff698-8b9c-43e4-a5ea-0fccb6d41b79","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":160,"box":{"x":70,"y":294,"width":788,"height":11}},{"id":"bfce4960-39fd-4bbf-8ec4-ffe72ccccfea","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":160,"box":{"x":70,"y":309,"width":793,"height":11}},{"id":"c0daf953-b0d7-4999-bd0d-214f6527ce95","block_type":"box","text":"classes of shares: exchanges of Investor A, Investor A1 and Institutional Shares of a Fund will receive Investor A","page_number":160,"box":{"x":69,"y":324,"width":802,"height":12}},{"id":"8b488f44-aded-4ed1-a614-2ef20eab2982","block_type":"box","text":"Shares of Summit and exchanges of Investor C Shares of a Fund will receive Investor C Shares of Summit. You may","page_number":160,"box":{"x":69,"y":339,"width":824,"height":12}},{"id":"99699f1a-f42c-4ac1-9cbb-292e63e81d79","block_type":"box","text":"exchange Investor A Shares of Summit back into Investor A or Institutional Shares of a Fund, if you are eligible to","page_number":160,"box":{"x":69,"y":355,"width":805,"height":11}},{"id":"faac670f-341e-4301-8652-f569c35322bf","block_type":"box","text":"hold such shares. You may exchange Investor C Shares of Summit back into Investor C Shares of a Fund and, in the","page_number":160,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"e4bee5ff-435f-4397-8f94-a86c9b84215f","block_type":"box","text":"event of such an exchange, the period of time that you held Investor C Shares of Summit will count toward","page_number":160,"box":{"x":69,"y":385,"width":758,"height":11}},{"id":"f72da571-899a-4b1a-8542-42ae076c302b","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":160,"box":{"x":69,"y":400,"width":822,"height":11}},{"id":"1420463f-70f8-42af-bc8e-a940440111f4","block_type":"box","text":"subject to a distribution fee at an annual rate of 0.75% of average daily net assets of such Investor C Shares.","page_number":160,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"87dfdbfd-e7f3-45d7-9ec8-fe59614a2798","block_type":"box","text":"Exchanges of Investor C Shares of a money market fund other than Summit for Investor C Shares of a Fund will be","page_number":160,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"f0c0095a-71fb-4818-aa69-01cbfdd7a5b9","block_type":"box","text":"exercised at NAV. However, a CDSC may be charged in connection with any subsequent redemption of the Investor C","page_number":160,"box":{"x":69,"y":445,"width":830,"height":12}},{"id":"f91658a3-fca1-46b6-8184-84ef802f092f","block_type":"box","text":"Shares of the Fund received in the exchange. In determining the holding period for calculating the CDSC payable on","page_number":160,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"80797240-9bbe-4214-8554-7e09e21b2826","block_type":"box","text":"redemption of Investor C Shares of the Fund received in the exchange, the holding period of the money market fund","page_number":160,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"59dea63a-5098-4d8d-9fc5-7ecaaf37dd96","block_type":"box","text":"Investor C Shares originally held will be added to the holding period of the Investor C Shares acquired through","page_number":160,"box":{"x":70,"y":491,"width":781,"height":11}},{"id":"3dec61f1-4d8a-480d-ae96-af6472b50de4","block_type":"box","text":"exchange.","page_number":160,"box":{"x":69,"y":506,"width":70,"height":11}},{"id":"2d7bc159-810a-4e4f-9a58-96822f202209","block_type":"box","text":"Exchanges by Participants in Certain Programs.","page_number":160,"box":{"x":102,"y":529,"width":350,"height":11}},{"id":"57522335-8304-4980-9b96-9c1f38efc6ac","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":160,"box":{"x":458,"y":528,"width":448,"height":12}},{"id":"5f4c0e53-95b6-4316-8648-04f0d8cda5c9","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":160,"box":{"x":70,"y":543,"width":828,"height":12}},{"id":"4196ab19-be8d-4dcf-b5c8-3d39728e2ba3","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":160,"box":{"x":69,"y":559,"width":796,"height":11}},{"id":"8db6f729-8f7b-4dd5-bf61-c47d3ab6ccd4","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":160,"box":{"x":70,"y":574,"width":324,"height":11}},{"id":"7a06ec56-99b8-4312-8a31-244957b39d86","block_type":"box","text":"Exercise of the Exchange Privilege","page_number":160,"box":{"x":102,"y":596,"width":254,"height":12}},{"id":"6e6ee83e-7fe0-4df8-bd08-eff1a658c900","block_type":"box","text":".","page_number":160,"box":{"x":357,"y":604,"width":2,"height":1}},{"id":"60de906d-55b1-4299-a4a8-992476fe10a7","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":160,"box":{"x":365,"y":596,"width":543,"height":12}},{"id":"feff767a-e127-4c4c-9bda-a5e128cb9974","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":160,"box":{"x":69,"y":612,"width":794,"height":11}},{"id":"9b06a9d4-1871-46f4-a097-9ea0f60279bb","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":160,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"73421b6c-f5d8-41ae-b1fb-0697ee9eaae0","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":160,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"53773cee-16a1-4ef9-8de4-0e4154be317c","block_type":"box","text":"A shareholder who wishes to make an exchange may do so by sending a written request to the Fund c/o the","page_number":160,"box":{"x":101,"y":665,"width":772,"height":11}},{"id":"d4802b9d-ec4d-488e-9275-60f62cba5413","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":160,"box":{"x":68,"y":680,"width":824,"height":11}},{"id":"f92f207d-dae6-4061-9c17-05adbbd49047","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":160,"box":{"x":69,"y":695,"width":801,"height":11}},{"id":"54d5d35e-1ec5-4db0-b852-a115c9bcd9e2","block_type":"box","text":"Application that they do not wish to use this privilege. To add this feature to an existing account that previously did","page_number":160,"box":{"x":68,"y":710,"width":817,"height":11}},{"id":"a4fba218-a8a3-4d87-a811-327654baaf6c","block_type":"box","text":"not provide this option, a Telephone Exchange Authorization Form must be filed with the Transfer Agent. This form is","page_number":160,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"2972bcde-43b4-4dcd-a481-d96ab58c59b8","block_type":"box","text":"available from the Transfer Agent. Once this election has been made, the shareholder may simply contact the Fund by","page_number":160,"box":{"x":69,"y":740,"width":840,"height":11}},{"id":"d493d46d-37fb-45cc-ad5a-3c667a101689","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":160,"box":{"x":68,"y":755,"width":811,"height":11}},{"id":"5217a638-ad20-4886-b004-db699d821d6a","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":160,"box":{"x":68,"y":770,"width":815,"height":12}},{"id":"60cbe535-3039-4e06-b2fb-b5b2f5f0bde1","block_type":"box","text":"Transfer Agent in writing.","page_number":160,"box":{"x":68,"y":785,"width":175,"height":12}},{"id":"2e1d2bb0-2d31-440f-b65b-051c9a43cf3d","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":160,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"222702c4-f775-43f9-b207-86151efffd4c","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":160,"box":{"x":69,"y":823,"width":828,"height":12}},{"id":"ee8d6411-3405-4cd3-8724-500768f87c5f","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":160,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"a1811538-5673-4787-9705-be0ff35ca15c","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":160,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"561f8ad0-c6ab-4f63-9484-1ef492228b84","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":160,"box":{"x":68,"y":869,"width":763,"height":11}},{"id":"c5f90408-2760-4480-84fa-adc415119eae","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":160,"box":{"x":69,"y":884,"width":424,"height":11}},{"id":"9bf6c797-05f7-4de1-a107-7c8668972b7c","block_type":"box","text":"II-120","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"36b57f66-81d1-4db3-bfba-34e14a4ff7d9","block_type":"box","text":"NM1026U-5982643-160/241","page_number":160,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"8f7d9ba7-cfaa-4e61-8f55-a7d4ff08e2cc","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":161,"box":{"x":101,"y":45,"width":790,"height":11}},{"id":"5a45d291-263f-4154-9fde-52cbbb446b06","block_type":"box","text":"must be legally available for sale in the state of the investor’s residence. For U.S. federal income tax purposes, a","page_number":161,"box":{"x":69,"y":60,"width":808,"height":11}},{"id":"19e5639d-c869-4110-ac38-ae23f97f6dd4","block_type":"box","text":"share exchange is a taxable event and, accordingly, a capital gain or loss may be realized. Before making an","page_number":161,"box":{"x":69,"y":75,"width":771,"height":11}},{"id":"bb49c147-43df-45fc-8b5c-79e52820aaa3","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":161,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"fa46150f-698d-40f6-96db-503f3acac9b9","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":161,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"f4f0c523-694a-4b0e-a8e8-fd72e722cbeb","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":161,"box":{"x":70,"y":120,"width":354,"height":12}},{"id":"92f4cbfb-a476-45c9-a863-12ffad030c63","block_type":"box","text":"The Funds reserve the right to suspend, modify or terminate the exchange privilege at any time. Notice will be","page_number":161,"box":{"x":101,"y":143,"width":782,"height":11}},{"id":"30d9dc7a-d9ff-4dfb-8137-96355f61ecaa","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":161,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"8a2f695c-cee3-4e36-8ea2-3b6e9902d846","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":161,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"450529e1-91fe-48eb-8ba5-9e6604595e2e","block_type":"box","text":"amount or frequency, and to other restrictions that may be established from time to time to ensure that exchanges","page_number":161,"box":{"x":69,"y":188,"width":818,"height":12}},{"id":"b40ba76d-6a75-4bdc-b5be-f28e877bb31c","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":161,"box":{"x":69,"y":203,"width":506,"height":12}},{"id":"ed99dc03-c0b8-4f81-9e8b-bd9900948510","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":161,"box":{"x":101,"y":226,"width":733,"height":11}},{"id":"ec555bd8-8427-496b-bb61-8d2c46b10d39","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":161,"box":{"x":69,"y":241,"width":793,"height":11}},{"id":"af7d238d-41a2-44dd-8a46-8f340ca91f5d","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":161,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"86da42dd-6adb-4d87-89dd-0ae77874415c","block_type":"box","text":"such procedures. By use of the exchange privilege, the investor authorizes the Fund’s Transfer Agent to act on","page_number":161,"box":{"x":69,"y":271,"width":785,"height":12}},{"id":"85f0449d-a0e9-4ccd-86d7-8a5c91058661","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":161,"box":{"x":68,"y":286,"width":825,"height":12}},{"id":"d77d68ef-ffba-46f3-a457-d0512ce59aed","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":161,"box":{"x":68,"y":302,"width":837,"height":11}},{"id":"aa45451d-e4a7-4a00-819c-35d3c1bed8b4","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":161,"box":{"x":69,"y":317,"width":767,"height":11}},{"id":"72ad1fc7-bd58-4893-be22-13b54eae2532","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":161,"box":{"x":69,"y":332,"width":750,"height":11}},{"id":"c85c547c-6fe1-4cea-8525-5defcc1d1290","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":161,"box":{"x":102,"y":355,"width":757,"height":11}},{"id":"1a906336-b440-4221-8f28-0557921bccc5","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":161,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"cee8c647-c02c-4e4c-b56a-b40cb85779c9","block_type":"box","text":"such offering from time to time. The exchange privilege is available only to U.S. shareholders in states where the","page_number":161,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"8107d6f4-4e60-44c9-b9c2-9e51db531005","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":161,"box":{"x":69,"y":400,"width":817,"height":11}},{"id":"8c14040f-6035-4616-a76f-0f9a5ed5b696","block_type":"box","text":"may be distributed by the Distributor.","page_number":161,"box":{"x":69,"y":415,"width":262,"height":11}},{"id":"c7ada90d-c9bc-4052-b0a6-689e3d0fa808","block_type":"box","text":"Participation in Fee-Based Programs","page_number":161,"box":{"x":69,"y":445,"width":266,"height":11}},{"id":"75fe5c40-73cd-4664-b1f9-5dda4ae09edb","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":161,"box":{"x":102,"y":468,"width":780,"height":11}},{"id":"84cd82d4-5f17-406e-b5ae-b3772c8d4932","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":161,"box":{"x":69,"y":483,"width":826,"height":11}},{"id":"c68f7149-c811-43fd-bde8-e8b31e44061b","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":161,"box":{"x":70,"y":498,"width":825,"height":11}},{"id":"944b0e10-0dcd-402c-923f-aa09fdfbfb34","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":161,"box":{"x":69,"y":513,"width":770,"height":12}},{"id":"ba6273e2-7784-42fb-861a-74bca1c89e21","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":161,"box":{"x":69,"y":528,"width":837,"height":12}},{"id":"e2361821-6ec5-4c9f-b20f-b102d985d43b","block_type":"box","text":"if you choose to leave the fee-based program, you may have to redeem your shares held through the program and","page_number":161,"box":{"x":70,"y":543,"width":808,"height":12}},{"id":"24104ee6-1a4e-4663-a5a1-8c8f4097977d","block_type":"box","text":"purchase shares of another class, which may be subject to distribution and service fees. This may be a taxable event","page_number":161,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"24645382-3be6-490c-b301-c7c621c882f7","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":161,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"6e6424b9-d45e-4b6a-a4d0-1f391c6425f1","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":161,"box":{"x":70,"y":589,"width":555,"height":11}},{"id":"07d27faa-809e-4ad1-89ab-62e861e4fb29","block_type":"box","text":"Generally, upon termination of a fee-based program, the shares may be liquidated or the shares can be held in","page_number":161,"box":{"x":102,"y":612,"width":788,"height":11}},{"id":"49c32655-c366-44db-af29-e52df39614a8","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":161,"box":{"x":69,"y":627,"width":817,"height":10}},{"id":"da9f94d5-af76-4e29-8a99-6e91851cbf7a","block_type":"box","text":"class was held in the program can be held after termination. Shares that have been held for less than specified","page_number":161,"box":{"x":69,"y":642,"width":796,"height":11}},{"id":"76e5666a-3210-47e2-8428-759d62d6fcd6","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":161,"box":{"x":70,"y":657,"width":754,"height":11}},{"id":"d5d99ce4-ea55-4707-bd62-363d75c2fe37","block_type":"box","text":"Institutional Shares in the program may be eligible to purchase additional shares of the respective share class of a","page_number":161,"box":{"x":70,"y":672,"width":820,"height":11}},{"id":"7fe303d8-87b2-495f-8b45-e84789c94340","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":161,"box":{"x":70,"y":687,"width":777,"height":11}},{"id":"0d7ae7e3-47be-43a0-91ff-50140ca3bd9f","block_type":"box","text":"Institutional Shares are permitted only if you have an existing position at the time of purchase or are otherwise","page_number":161,"box":{"x":70,"y":702,"width":791,"height":12}},{"id":"a680bfa0-df6f-47c0-a031-f4653e8f9635","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":161,"box":{"x":69,"y":717,"width":756,"height":12}},{"id":"5a02a44b-80cc-4c42-85aa-c4cd8bdd55dd","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":161,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"ef81c071-999a-4e71-9e1f-5647a6c5da5a","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":161,"box":{"x":68,"y":755,"width":791,"height":11}},{"id":"f498a836-4bbf-4e5c-bf1b-c86862a236b9","block_type":"box","text":"intermediary’s policies and procedures, exchange the share class held in the program for another share class of the","page_number":161,"box":{"x":70,"y":770,"width":830,"height":12}},{"id":"56c7fd01-c4a0-48cc-9810-487b976cf1ec","block_type":"box","text":"same fund, provided that the exchanged shares are not subject to a sales charge and the shareholder meets the","page_number":161,"box":{"x":69,"y":785,"width":807,"height":12}},{"id":"3a306a78-e340-4384-9218-6d73ad534e3a","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":161,"box":{"x":69,"y":801,"width":801,"height":11}},{"id":"2aa60ba4-e756-4ea3-8580-ed2b5696ab96","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":161,"box":{"x":69,"y":816,"width":424,"height":11}},{"id":"b1a39294-093c-414a-b754-6ced31915d02","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":161,"box":{"x":102,"y":838,"width":752,"height":12}},{"id":"e456ea0e-f22f-4f70-b56c-952e511f3337","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":161,"box":{"x":70,"y":853,"width":789,"height":12}},{"id":"bdcddb5f-46ae-4025-b887-37b8dcdee177","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":161,"box":{"x":69,"y":869,"width":785,"height":11}},{"id":"f6c75a1f-a0ac-45a0-a4b4-6e8b43335817","block_type":"box","text":"information.","page_number":161,"box":{"x":70,"y":884,"width":83,"height":9}},{"id":"c33fc546-31f7-4b02-917f-1b9e2fd71218","block_type":"box","text":"II-121","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0fce31e9-7e8f-4ce5-bfd1-0d2e57f942b4","block_type":"box","text":"NM1026U-5982643-161/241","page_number":161,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"0771a544-ea57-4409-b437-a8d645a0e374","block_type":"box","text":"Retirement and Education Savings Plans","page_number":162,"box":{"x":69,"y":45,"width":296,"height":11}},{"id":"7cbd4c00-c284-4092-b3f4-d370fe5c4849","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":162,"box":{"x":102,"y":67,"width":805,"height":12}},{"id":"2525b37e-d0bf-4329-9d23-c495f3a28ac6","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":162,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"3f7a4676-900a-43f5-80d7-d28461da27b2","block_type":"box","text":"the other mutual funds sponsored by the Manager or its affiliates as well as in other securities. There may be fees","page_number":162,"box":{"x":68,"y":98,"width":819,"height":11}},{"id":"38a015ef-0cca-4f73-ac25-3e09550cd1bd","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":162,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"d19d2873-bec6-4f09-89af-77648188708f","block_type":"box","text":"your financial intermediary.","page_number":162,"box":{"x":68,"y":128,"width":191,"height":11}},{"id":"9911223c-9b1a-4671-a905-6ef5b5a71772","block_type":"box","text":"Dividends received in each of the plans referred to above are exempt from U.S. federal taxation until distributed","page_number":162,"box":{"x":102,"y":150,"width":796,"height":11}},{"id":"4c96cad1-d0a8-476b-8283-9c17e8e2f5dd","block_type":"box","text":"from the plans and, in the case of Roth IRAs and education savings plans, may be exempt from taxation when","page_number":162,"box":{"x":68,"y":166,"width":784,"height":11}},{"id":"8c78f1da-edb3-4c8f-91cb-453460d6281c","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":162,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"b79a45ff-6998-4f97-9903-fa1c4fedcc07","block_type":"box","text":"specific tax laws relating to the plan and should consult their attorneys or tax advisors with respect to the","page_number":162,"box":{"x":69,"y":196,"width":753,"height":11}},{"id":"2e4a1320-e5a9-409b-b69a-990b49920168","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":162,"box":{"x":69,"y":211,"width":354,"height":11}},{"id":"4fda2064-35c5-4c55-a34a-814d84012dee","block_type":"box","text":"Automatic Investment Plans","page_number":162,"box":{"x":68,"y":241,"width":207,"height":9}},{"id":"b677bdd6-3ba3-49a9-b330-c90df93669d3","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":162,"box":{"x":102,"y":264,"width":773,"height":11}},{"id":"929efa65-b640-4e48-9c20-16f3ff4a6dc4","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":162,"box":{"x":69,"y":279,"width":477,"height":11}},{"id":"17c10290-64a5-4b06-830c-fb44cf268f45","block_type":"box","text":"®","page_number":162,"box":{"x":547,"y":279,"width":6,"height":5}},{"id":"767b55be-27c8-4a30-b1b1-b17a6cfb7d28","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":162,"box":{"x":559,"y":279,"width":272,"height":11}},{"id":"325cf839-2dff-48b9-9ef8-e524eee54361","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":162,"box":{"x":70,"y":294,"width":787,"height":11}},{"id":"f835acf9-2336-458d-8117-053365ede9e7","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":162,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"6070e7e2-cb6c-4c68-892d-7cc072cac635","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":162,"box":{"x":68,"y":324,"width":805,"height":11}},{"id":"8373d485-bec5-4ec6-a344-87d1341dcd25","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":162,"box":{"x":68,"y":355,"width":285,"height":9}},{"id":"114c15d0-e9a6-48f3-9d1e-5eaaa36316f3","block_type":"box","text":"Each Fund will distribute substantially all of its net investment income and net realized capital gains, if any, to","page_number":162,"box":{"x":102,"y":377,"width":782,"height":12}},{"id":"bd4e8df5-5f10-4db5-a223-1f9cf1768eea","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":162,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"cb80c613-1974-4550-9b05-20dcc404c875","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":162,"box":{"x":69,"y":407,"width":839,"height":9}},{"id":"3588901f-e344-433a-be3b-80b82e542dee","block_type":"box","text":"Fund’s prospectus. Such election, or any revocation thereof, must be made in writing to the Transfer Agent, and will","page_number":162,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"878d27b5-d400-4ef2-a797-f25dd08636b2","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":162,"box":{"x":69,"y":438,"width":614,"height":11}},{"id":"5dd267ea-b2df-4c01-9c86-56ae56041b21","block_type":"box","text":"Systematic Withdrawal Plans","page_number":162,"box":{"x":68,"y":468,"width":214,"height":11}},{"id":"aada9931-3f88-406d-9954-df6c80b78bba","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":162,"box":{"x":102,"y":491,"width":780,"height":11}},{"id":"bd5c2443-c321-49c4-bb39-9991782672b7","block_type":"box","text":"Upon commencement of the SWP, the account must have a current value of $10,000 or more in a Fund.","page_number":162,"box":{"x":70,"y":505,"width":742,"height":12}},{"id":"99190859-f8d5-4eea-834f-b38934199e3d","block_type":"box","text":"Shareholders may elect to receive automatic cash payments of $50 or more at any interval. You may choose any day","page_number":162,"box":{"x":69,"y":520,"width":834,"height":12}},{"id":"d5fc240e-f708-4677-87d8-a4d6623edc97","block_type":"box","text":"for the withdrawal. If no day is specified, the withdrawals will be processed on the 25th day of the month or, if such","page_number":162,"box":{"x":68,"y":536,"width":823,"height":11}},{"id":"5f1b08b9-d825-4667-8869-f82eea1f5a6d","block_type":"box","text":"day is not a business day, on the prior business day and are paid promptly thereafter. An investor may utilize the SWP","page_number":162,"box":{"x":69,"y":551,"width":840,"height":11}},{"id":"4bc693c7-66ea-4d3f-ac38-7156745278eb","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":162,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"e849913d-38c3-4c80-87f7-4de5483c2187","block_type":"box","text":"www.blackrock.com.","page_number":162,"box":{"x":68,"y":582,"width":142,"height":8}},{"id":"8decd5da-60eb-4f74-9760-c134e70625a8","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":162,"box":{"x":102,"y":604,"width":789,"height":11}},{"id":"e8e40d2d-0add-4b43-a031-e3392ba9a8e1","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":162,"box":{"x":68,"y":619,"width":774,"height":11}},{"id":"749ef2cb-36a3-479f-a7a0-f97ffb8efd4d","block_type":"box","text":"Shareholders may change or cancel the SWP at any time, upon written notice to the Fund, or by calling the Fund at","page_number":162,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"ce804507-75e4-43fd-8555-6de774be8648","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":162,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"dfac175d-69e6-41f6-a86d-e08e6d432577","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":162,"box":{"x":69,"y":664,"width":803,"height":12}},{"id":"412acb05-f52c-44d1-88e2-c4f929bdd26b","block_type":"box","text":"CDSC will be assessed on redemptions of Investor C Shares made through the SWP that do not exceed 12% of the","page_number":162,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"3e3d5693-2a64-4ba2-b788-3c5b2243b4d4","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":162,"box":{"x":69,"y":695,"width":810,"height":11}},{"id":"e65d5003-742a-4d30-b563-d57340fcd5ae","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":162,"box":{"x":70,"y":710,"width":816,"height":11}},{"id":"395b639b-c8d4-4ba7-afc0-3d61602aa4e8","block_type":"box","text":"annually), respectively, of an account’s NAV on the redemption date. SWP redemptions of Investor C Shares in excess","page_number":162,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"baf2dbfd-e2fc-4ad4-a0a4-61e36c67df92","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":162,"box":{"x":69,"y":740,"width":367,"height":11}},{"id":"7c8597b5-7696-4851-be24-b1a954da093b","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":162,"box":{"x":102,"y":763,"width":798,"height":11}},{"id":"120d1659-2327-4127-b10b-09cd0c6864bd","block_type":"box","text":"to Buy, Sell, Exchange and Transfer Shares” or “How to Buy, Sell and Exchange Shares,” as applicable, in the Fund’s","page_number":162,"box":{"x":68,"y":778,"width":834,"height":11}},{"id":"edd5219e-dfc7-4322-a87a-6423487c7229","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":162,"box":{"x":69,"y":793,"width":311,"height":11}},{"id":"6ff4d8be-d396-40fc-a910-888e0429146d","block_type":"box","text":"Dividend Allocation Plan","page_number":162,"box":{"x":69,"y":823,"width":176,"height":9}},{"id":"4515c369-602b-4a72-9826-64ec139dccdf","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":162,"box":{"x":101,"y":846,"width":807,"height":11}},{"id":"7ef796c7-1a8b-4154-91d8-b13f621c9d3f","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":162,"box":{"x":69,"y":861,"width":763,"height":11}},{"id":"1f064f16-bdff-44f5-99dd-41b78933c7f4","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":162,"box":{"x":69,"y":876,"width":814,"height":11}},{"id":"47cf0ddf-8a05-4196-a6a2-14483f7b0bd6","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":162,"box":{"x":70,"y":891,"width":771,"height":11}},{"id":"2ae4f22f-5d12-409f-86c1-ed716ddcf203","block_type":"box","text":"II-122","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bf8a1e9f-af73-4b42-bdff-71a3ca7a3bd8","block_type":"box","text":"NM1026U-5982643-162/241","page_number":162,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"ca79d643-9f98-4f2c-952f-a3d09528a70b","block_type":"box","text":"PRICING OF SHARES","page_number":163,"box":{"x":406,"y":45,"width":167,"height":10}},{"id":"f7b4c214-30a9-45d4-b0cd-0a9dddee4732","block_type":"box","text":"Determination of Net Asset Value","page_number":163,"box":{"x":69,"y":76,"width":243,"height":8}},{"id":"7cc389bc-4000-473a-9e99-c84dd640bea8","block_type":"box","text":"Valuation of Shares.","page_number":163,"box":{"x":101,"y":98,"width":145,"height":9}},{"id":"e35e93aa-f8df-4941-afdc-73d3c311a230","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":163,"box":{"x":252,"y":98,"width":626,"height":11}},{"id":"406c7241-c596-47ad-9e31-03aeae113ad6","block_type":"box","text":"regular trading hours on the NYSE (currently 4:00 p.m. Eastern Time) on each business day the NYSE is open.","page_number":163,"box":{"x":69,"y":113,"width":785,"height":12}},{"id":"df87b9c2-2d2d-406a-9c19-08615946813f","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":163,"box":{"x":101,"y":136,"width":342,"height":11}},{"id":"9cee56f0-1260-4bae-b209-1e15fc9b4d63","block_type":"box","text":"Equity Investments.","page_number":163,"box":{"x":102,"y":159,"width":143,"height":11}},{"id":"20f2cf5a-2e7d-4ddf-9f23-807f42d8078c","block_type":"box","text":"Equity securities traded on a recognized securities exchange (e.g., NYSE), on separate","page_number":163,"box":{"x":252,"y":159,"width":615,"height":11}},{"id":"19b84871-cf22-40b0-abf5-c441f77a6909","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":163,"box":{"x":68,"y":174,"width":799,"height":11}},{"id":"8db35aa9-9459-468d-a0f7-056e5df622ad","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":163,"box":{"x":70,"y":189,"width":808,"height":11}},{"id":"1d02a398-6291-43d4-9c26-67a8027957e9","block_type":"box","text":"generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that","page_number":163,"box":{"x":68,"y":204,"width":820,"height":11}},{"id":"9361be7f-438b-4903-9ae2-42caf6aefbc9","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":163,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"9e5815b3-ebfb-439d-b65b-10a233f2506b","block_type":"box","text":"other means of determining current market value may be used. If an equity security is traded on more than one","page_number":163,"box":{"x":69,"y":234,"width":793,"height":12}},{"id":"12c63f67-3257-40b7-9ceb-3070943bb675","block_type":"box","text":"Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that","page_number":163,"box":{"x":70,"y":249,"width":836,"height":12}},{"id":"49a90e4d-e401-4e61-bb41-690d4e158064","block_type":"box","text":"there are no sales involving an equity security held by a Fund on a day on which the Fund values such security, the","page_number":163,"box":{"x":68,"y":265,"width":815,"height":11}},{"id":"06051a4d-d522-4cc2-808a-8f087ba79b1b","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":163,"box":{"x":70,"y":280,"width":837,"height":11}},{"id":"42607fe2-adbd-4c13-8302-322c3135a981","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":163,"box":{"x":69,"y":295,"width":832,"height":11}},{"id":"8b90ccd6-44b4-4fa8-b1eb-d2b6d3ca9561","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":163,"box":{"x":68,"y":310,"width":828,"height":11}},{"id":"9cdc588a-33fd-45bc-96b7-f68e9fa9e957","block_type":"box","text":"values such security, the prior day’s price will be used, unless BlackRock determines that such prior day’s price no","page_number":163,"box":{"x":68,"y":325,"width":819,"height":11}},{"id":"cff8394c-65ab-40b9-9537-b87fdc4276c7","block_type":"box","text":"longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as","page_number":163,"box":{"x":70,"y":340,"width":798,"height":11}},{"id":"fa5f4ca7-d8db-4a88-8490-de8836de636e","block_type":"box","text":"defined below).","page_number":163,"box":{"x":69,"y":355,"width":106,"height":11}},{"id":"72231e7b-ef5a-41d5-b935-5b7200c4329e","block_type":"box","text":"Fixed-Income Investments.","page_number":163,"box":{"x":102,"y":378,"width":194,"height":9}},{"id":"6e57b79f-8825-4ae8-a0e2-be36268a1033","block_type":"box","text":"Fixed-income securities are generally valued using bid prices provided by dealers or","page_number":163,"box":{"x":304,"y":378,"width":592,"height":11}},{"id":"03afd655-264b-4e58-a959-ac8826c640d5","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":163,"box":{"x":70,"y":393,"width":825,"height":11}},{"id":"ca330e21-03e3-41fe-b563-a1d8eed12da8","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":163,"box":{"x":69,"y":408,"width":823,"height":11}},{"id":"96489937-9980-4a56-a6eb-eca512e6c6f0","block_type":"box","text":"and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit","page_number":163,"box":{"x":69,"y":423,"width":800,"height":12}},{"id":"3f29640e-8ed2-4d7b-96d9-3c2cd8b4c5da","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":163,"box":{"x":69,"y":438,"width":834,"height":11}},{"id":"9a07d677-2b8d-48e4-a03b-735cc86da355","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":163,"box":{"x":69,"y":453,"width":769,"height":12}},{"id":"a3e154cc-05b2-4ecf-933c-4b9baf8c724a","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":163,"box":{"x":70,"y":469,"width":797,"height":11}},{"id":"4528ffdd-0f4a-4de7-bf11-901e39567940","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":163,"box":{"x":69,"y":484,"width":821,"height":11}},{"id":"5a1ef059-1eb4-442a-8d6f-214dbdf2a5e7","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":163,"box":{"x":68,"y":499,"width":798,"height":11}},{"id":"c147936c-e416-44d0-a254-41a3e4798751","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":163,"box":{"x":69,"y":514,"width":825,"height":11}},{"id":"7316207a-785d-42b8-9305-994c2a0bf07f","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":163,"box":{"x":69,"y":529,"width":791,"height":11}},{"id":"331ecd05-cb52-4cbe-8e63-b64b99e0a96d","block_type":"box","text":"respect to debt obligations with 60 days or less remaining to maturity unless such method does not represent fair","page_number":163,"box":{"x":69,"y":544,"width":814,"height":11}},{"id":"41480ec7-8427-48f7-962c-8c6e9efcb924","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":163,"box":{"x":68,"y":559,"width":802,"height":12}},{"id":"f2686473-fb5e-42d5-a754-700acbe0286d","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":163,"box":{"x":69,"y":574,"width":773,"height":11}},{"id":"7276a376-e8ed-4f6f-9a45-dc396d7fdf0a","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":163,"box":{"x":69,"y":589,"width":795,"height":12}},{"id":"8c92f6bb-110f-429c-adfc-9e773a3ade80","block_type":"box","text":"attributes of the tranche.","page_number":163,"box":{"x":69,"y":605,"width":176,"height":9}},{"id":"78f4af87-72cb-4ab6-958a-7e295d801cbf","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":163,"box":{"x":101,"y":627,"width":344,"height":11}},{"id":"60c9d87c-6e0d-46a6-8f5b-53c4c0a8a8e5","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":163,"box":{"x":453,"y":628,"width":416,"height":11}},{"id":"9cb7c344-796f-4a72-859b-a85ca72798ac","block_type":"box","text":"index options or those that are customized) for which market quotations are readily available are valued at the mean","page_number":163,"box":{"x":70,"y":642,"width":829,"height":12}},{"id":"88e60b7a-13bf-42c9-a7ac-0861b900709c","block_type":"box","text":"of the last bid and ask prices as quoted on the Exchange or the board of trade on which such options are traded. In","page_number":163,"box":{"x":69,"y":658,"width":824,"height":11}},{"id":"d536ffc5-a132-46f9-8b87-d8197b4b2cc4","block_type":"box","text":"the event that there is no mean price available for an exchange-traded equity option held by a Fund on a day on which","page_number":163,"box":{"x":68,"y":673,"width":838,"height":11}},{"id":"7bbb6291-5c5a-436a-9f65-328122c9206a","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":163,"box":{"x":68,"y":688,"width":820,"height":11}},{"id":"b8df5078-a096-425e-a93a-4b6aff27860e","block_type":"box","text":"the value of such option. If no bid or ask price is available on a day on which a Fund values such option, the prior","page_number":163,"box":{"x":68,"y":703,"width":808,"height":11}},{"id":"b12184f7-7d52-4c6c-80e8-90a470ea045e","block_type":"box","text":"day’s price will be used, unless BlackRock determines that such prior day’s price no longer reflects the fair value of","page_number":163,"box":{"x":69,"y":718,"width":824,"height":11}},{"id":"ad2304b0-186a-4954-96d8-a039ef85547e","block_type":"box","text":"the option, in which case such option will be treated as a Fair Value Asset. Customized exchange-traded equity","page_number":163,"box":{"x":68,"y":733,"width":789,"height":11}},{"id":"da278e16-c2dc-4eed-8bf2-6bcd33e42db9","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":163,"box":{"x":69,"y":748,"width":807,"height":12}},{"id":"e4741644-c482-4c7f-a7aa-9bc8404b6897","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":163,"box":{"x":69,"y":763,"width":824,"height":12}},{"id":"4543f717-d5ed-450f-b969-c09789174f27","block_type":"box","text":"on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements","page_number":163,"box":{"x":69,"y":778,"width":833,"height":12}},{"id":"527d9a25-ddb1-4007-b139-8f8d2360955b","block_type":"box","text":"and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in","page_number":163,"box":{"x":69,"y":794,"width":830,"height":11}},{"id":"8fe1fd3b-a1e7-48d1-885c-de732d1fbae8","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":163,"box":{"x":69,"y":809,"width":301,"height":9}},{"id":"54b1d4a1-f66d-4b0b-9119-d1f209ed6ec1","block_type":"box","text":"Underlying Funds.","page_number":163,"box":{"x":102,"y":832,"width":128,"height":11}},{"id":"3be9c220-f3ad-4d6e-955c-b11c8157e86d","block_type":"box","text":"Shares of underlying open-end funds (including money market funds) are valued at NAV.","page_number":163,"box":{"x":237,"y":831,"width":621,"height":12}},{"id":"cab02513-d4e5-4aae-9e22-7dfd7e463df1","block_type":"box","text":"Shares of underlying exchange-traded closed-end funds or other ETFs will be valued at their most recent closing price.","page_number":163,"box":{"x":69,"y":846,"width":837,"height":12}},{"id":"d08df4b8-aafb-4455-9af4-555e83a3ff2a","block_type":"box","text":"General Valuation Information.","page_number":163,"box":{"x":101,"y":869,"width":220,"height":9}},{"id":"4d935985-267d-4e17-9794-9d5ab588294f","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":163,"box":{"x":328,"y":869,"width":564,"height":11}},{"id":"58d003d7-c079-480d-9862-4f1af9f4af4f","block_type":"box","text":"market makers to value each Fund’s securities and other assets and liabilities are based on information available at","page_number":163,"box":{"x":69,"y":884,"width":831,"height":9}},{"id":"78cbbf67-87cc-4e8e-a942-53d1e08ff6e2","block_type":"box","text":"the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated","page_number":163,"box":{"x":68,"y":900,"width":828,"height":11}},{"id":"461b8d50-80eb-4fea-984e-066b27688450","block_type":"box","text":"II-123","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"87f26d80-b19a-4f03-a0c6-97ea96ba1b7d","block_type":"box","text":"NM1026U-5982643-163/241","page_number":163,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"ead547a0-63ba-4827-a314-39d2024f63e7","block_type":"box","text":"subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be","page_number":164,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"c242df5a-53ea-412d-9115-12d0cf5fa17e","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":164,"box":{"x":69,"y":60,"width":817,"height":11}},{"id":"66b523b2-448d-4354-a53e-68f3fbebf6b8","block_type":"box","text":"the revision.","page_number":164,"box":{"x":68,"y":75,"width":87,"height":9}},{"id":"fef854f4-3cca-4ccb-8c7f-0986111482eb","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":164,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"16775222-7075-4bc4-8ecf-ad7c975df840","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":164,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"23e2e68e-be5e-418b-874a-1a8e404c1f41","block_type":"box","text":"matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a","page_number":164,"box":{"x":69,"y":128,"width":818,"height":11}},{"id":"fb752909-a7c8-414a-8155-a8dda42463ff","block_type":"box","text":"price different from the price that would have been determined had the evaluated pricing method not been used. The","page_number":164,"box":{"x":70,"y":143,"width":832,"height":11}},{"id":"b0f21f97-d764-4d1d-b135-749f458826a9","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":164,"box":{"x":70,"y":158,"width":832,"height":11}},{"id":"3051e578-386a-4c67-ab03-8c42d8935a8c","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":164,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"8567590b-38ef-412b-9276-54a70377cd8c","block_type":"box","text":"methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an","page_number":164,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"b6d00b72-e227-41bf-9f5f-e9c801df9dc0","block_type":"box","text":"investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss","page_number":164,"box":{"x":70,"y":204,"width":833,"height":11}},{"id":"9900ab62-2a81-42ac-ab1e-a7fb7f273ff5","block_type":"box","text":"or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investment may also be","page_number":164,"box":{"x":69,"y":218,"width":827,"height":12}},{"id":"3c93ef19-26c6-4127-bf90-ba83c00af7c6","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":164,"box":{"x":70,"y":234,"width":741,"height":11}},{"id":"bb9e94f4-7fe6-4c73-a9ca-ddd3c8820e4c","block_type":"box","text":"In the event that application of the methods of valuation discussed above result in a price for a security which is","page_number":164,"box":{"x":102,"y":256,"width":800,"height":11}},{"id":"ad00489f-2a3b-4596-b14e-3b710ad09e4e","block_type":"box","text":"deemed not to be representative of the fair market value of such security, the security will be valued by, under the","page_number":164,"box":{"x":69,"y":271,"width":811,"height":12}},{"id":"ccb0cd79-7b01-4f92-9c6f-ec3af06ba339","block_type":"box","text":"direction of or in accordance with a method approved by BlackRock, the Fund’s valuation designee, as reflecting fair","page_number":164,"box":{"x":69,"y":286,"width":827,"height":12}},{"id":"34ca9031-bd52-49ef-a9d2-c5641d5070f6","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":164,"box":{"x":68,"y":302,"width":824,"height":11}},{"id":"ecfc5b9b-7a53-448d-8ea7-c406018c2e14","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":164,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"0d424102-f021-43e0-bba8-5bc6f98a044c","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":164,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"5e680c0d-6d02-4c4c-b58c-5c2460a01c4f","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":164,"box":{"x":69,"y":347,"width":685,"height":11}},{"id":"81a07740-a358-456b-9d28-5b03cf836b59","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":164,"box":{"x":102,"y":370,"width":795,"height":11}},{"id":"61fe28a0-8989-4e9a-ba64-3123116a1965","block_type":"box","text":"which a Fund’s NAV is not calculated. In such cases, the NAV of a Fund’s shares may be significantly affected on","page_number":164,"box":{"x":68,"y":385,"width":805,"height":11}},{"id":"8d43ac92-fdc4-4f76-8ee0-216fc61255c1","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":164,"box":{"x":69,"y":400,"width":529,"height":11}},{"id":"420b71c6-c202-4f8e-95f1-36be3e7d4f17","block_type":"box","text":"Fair Value.","page_number":164,"box":{"x":102,"y":423,"width":74,"height":9}},{"id":"1e3e4eec-2448-42c0-b56d-bfbc6268e1c3","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":164,"box":{"x":183,"y":423,"width":693,"height":11}},{"id":"e9ccbfa9-07b2-4239-80ff-e841def94fed","block_type":"box","text":"Fund’s investments are valued at fair value (“Fair Value Assets”). Fair Value Assets are valued by BlackRock in","page_number":164,"box":{"x":70,"y":438,"width":785,"height":11}},{"id":"b9e20a11-c56b-4651-93e9-7ea13d8295f3","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":164,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"0c0ef98a-5a3c-4bc3-9707-3b2a6e182849","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":164,"box":{"x":70,"y":468,"width":779,"height":11}},{"id":"e8e58f5b-7da9-4ac5-a5a0-8dbc51366d07","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":164,"box":{"x":70,"y":483,"width":773,"height":11}},{"id":"76fe086d-d242-48c1-99e3-a82cfe0720b3","block_type":"box","text":"unreliable if, among other things, a security or other asset or liability does not have a price source due to its","page_number":164,"box":{"x":69,"y":498,"width":772,"height":11}},{"id":"70ca9d68-f2b5-4ed2-bb18-db4de7051547","block_type":"box","text":"complete lack of trading, if BlackRock believes a market quotation from a broker-dealer or other source is unreliable","page_number":164,"box":{"x":69,"y":513,"width":826,"height":12}},{"id":"8867ff13-ef5d-4ef3-9524-45b7745e644d","block_type":"box","text":"(e.g., where it varies significantly from a recent trade, or no longer reflects the fair value of the security or other asset","page_number":164,"box":{"x":69,"y":528,"width":838,"height":12}},{"id":"b8799d07-169f-47d2-9acd-77c8bc3ba581","block_type":"box","text":"or liability subsequent to the most recent market quotation), or where the security or other asset or liability is only","page_number":164,"box":{"x":69,"y":544,"width":813,"height":11}},{"id":"2b1b8465-e614-4cab-a8c3-75a873ac1bfc","block_type":"box","text":"thinly traded or due to the occurrence of a significant event subsequent to the most recent market quotation. For this","page_number":164,"box":{"x":68,"y":559,"width":837,"height":11}},{"id":"fba2ed34-2d70-4a88-a313-d93cf93396c2","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":164,"box":{"x":70,"y":574,"width":838,"height":11}},{"id":"d9949c97-8b4a-470e-845a-4b0c6196ec4c","block_type":"box","text":"an event has occurred after the close of trading for an asset or liability but prior to or at the time of pricing a Fund’s","page_number":164,"box":{"x":69,"y":589,"width":824,"height":11}},{"id":"00c708a7-1a97-42a0-9b1c-b1493cc54f15","block_type":"box","text":"assets or liabilities, is likely to cause a material change to the last exchange closing price or closing market price of","page_number":164,"box":{"x":69,"y":604,"width":828,"height":11}},{"id":"b6ebc8bb-8ec1-4613-981d-27e349df0b7d","block_type":"box","text":"one or more assets held by, or liabilities of, the Fund. On any day the NYSE is open and a foreign market or the","page_number":164,"box":{"x":69,"y":619,"width":793,"height":11}},{"id":"31278362-af7d-44a7-a825-94efb4a35fc4","block_type":"box","text":"primary exchange on which a foreign asset or liability is traded is closed, such asset or liability will be valued using","page_number":164,"box":{"x":70,"y":634,"width":819,"height":12}},{"id":"0314cb07-55e7-4a6e-a4be-53d5751ed547","block_type":"box","text":"the prior day’s price, provided that BlackRock is not aware of any significant event or other information that would","page_number":164,"box":{"x":68,"y":649,"width":810,"height":12}},{"id":"253c1a74-ad24-4736-ac0b-d8c6a144bef6","block_type":"box","text":"cause such price to no longer reflect the fair value of the asset or liability, in which case such asset or liability would","page_number":164,"box":{"x":69,"y":664,"width":828,"height":12}},{"id":"3a65629f-9309-43a5-9802-9aea1af65f2d","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":164,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"ecab845d-dd4f-453f-9108-28b160454420","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":164,"box":{"x":68,"y":695,"width":814,"height":11}},{"id":"50b9d991-f3fc-4cc5-96ee-df1f495c21a1","block_type":"box","text":"closed. This systematic fair value pricing methodology is designed to correlate the prices of foreign assets in one or","page_number":164,"box":{"x":69,"y":710,"width":827,"height":11}},{"id":"196dd897-f563-439c-9afe-9ba5693dcb17","block_type":"box","text":"more non-U.S. markets following the close of the local markets to the prices that might have prevailed as of a Fund’s","page_number":164,"box":{"x":69,"y":725,"width":834,"height":11}},{"id":"8eb89d0b-425c-46c8-8978-1c7a8f2a2bf3","block_type":"box","text":"pricing time.","page_number":164,"box":{"x":70,"y":740,"width":85,"height":11}},{"id":"4592a821-e963-4002-a29c-b33794d3d515","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":164,"box":{"x":102,"y":763,"width":794,"height":11}},{"id":"8b0e398c-0f34-4d9b-83e3-be24c25c3127","block_type":"box","text":"and significant inputs used in the fair valuation of Fund assets or liabilities. In addition, the Funds’ accounting agent","page_number":164,"box":{"x":69,"y":778,"width":829,"height":11}},{"id":"42d6dc7e-b925-4788-baad-57bef24f157c","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":164,"box":{"x":69,"y":793,"width":813,"height":11}},{"id":"5f0e839b-9def-46b1-b4a6-017b96e30588","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":164,"box":{"x":70,"y":808,"width":808,"height":11}},{"id":"5d391d3b-a24f-4b60-8571-13ad17cd6ca8","block_type":"box","text":"assets and liabilities of the Funds.","page_number":164,"box":{"x":69,"y":823,"width":245,"height":9}},{"id":"15dd7c38-ebb5-4f21-9784-6d23c73bcdae","block_type":"box","text":"When determining the price for a Fair Value Asset, BlackRock will seek to determine the price that a Fund might","page_number":164,"box":{"x":101,"y":846,"width":795,"height":11}},{"id":"a3f52ce0-d699-4cc6-a1a2-82286e8ad6e4","block_type":"box","text":"reasonably expect to receive from the current sale of that asset or liability in an arm’s-length transaction on the date","page_number":164,"box":{"x":69,"y":861,"width":832,"height":11}},{"id":"43f86a49-ea7d-401b-b780-bebee0d5e7cc","block_type":"box","text":"on which the asset or liability is being valued, and does not seek to determine the price a Fund might reasonably","page_number":164,"box":{"x":69,"y":876,"width":805,"height":11}},{"id":"e0a775a9-95a0-41ca-bb9c-112935dc4bf0","block_type":"box","text":"expect to receive for selling an asset or liability at a later time or if it holds the asset or liability to maturity. Fair value","page_number":164,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"1e44ac18-5fd3-48a9-8122-301796caa05a","block_type":"box","text":"II-124","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9ecfde23-e6af-4b72-9b85-106752cb9cae","block_type":"box","text":"NM1026U-5982643-164/241","page_number":164,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"88a9f39e-4ebd-407d-ab92-50abe018fc87","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":165,"box":{"x":69,"y":45,"width":744,"height":11}},{"id":"c69cd0fe-d768-4a09-86a9-d8af7d23625f","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":165,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"fa4ffecf-7306-474a-a132-9437e1417aca","block_type":"box","text":"valuation models.","page_number":165,"box":{"x":68,"y":75,"width":125,"height":9}},{"id":"fbfe4766-5cd0-4230-b66f-e8702a671cd2","block_type":"box","text":"Fair value represents a good faith approximation of the value of an asset or liability. When determining the fair","page_number":165,"box":{"x":102,"y":98,"width":785,"height":11}},{"id":"6107a96a-e247-4f10-981e-f0eb43278ad3","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":165,"box":{"x":68,"y":113,"width":822,"height":11}},{"id":"ff32d11d-1e24-4125-82cb-596f501f1aed","block_type":"box","text":"the asset type). For example, the investment may be initially priced based on the original cost of the investment or,","page_number":165,"box":{"x":68,"y":128,"width":820,"height":11}},{"id":"1be749e1-f1c3-4bda-80ff-0118979a10e1","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":165,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"1ebf27a2-8005-4c20-8efc-a2c71894c0d5","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":165,"box":{"x":69,"y":158,"width":766,"height":11}},{"id":"67c48f23-3bd8-4e32-8974-124c73990430","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":165,"box":{"x":69,"y":173,"width":828,"height":11}},{"id":"4767acdc-4281-43e7-9108-c9766b7b6ab5","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":165,"box":{"x":69,"y":188,"width":378,"height":12}},{"id":"4f077074-cf1d-4c10-af9b-9b8eb57a977f","block_type":"box","text":"The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or","page_number":165,"box":{"x":101,"y":211,"width":784,"height":11}},{"id":"3a735fa1-4b1a-4856-aa3f-413779e8aab9","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":165,"box":{"x":70,"y":226,"width":836,"height":11}},{"id":"6a4bfbca-2b58-4714-a15c-3dc8976095a3","block_type":"box","text":"NAV. As a result, a Fund’s sale or redemption of its shares at NAV, at a time when a holding or holdings are valued at","page_number":165,"box":{"x":70,"y":241,"width":834,"height":11}},{"id":"ea42f189-2bd3-4beb-8dcd-ac483554f621","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":165,"box":{"x":68,"y":256,"width":728,"height":12}},{"id":"c76c76dd-0755-4e8c-8f00-bfc6b3519996","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":165,"box":{"x":102,"y":279,"width":786,"height":11}},{"id":"8a0230ce-14e9-437d-9120-a84ce1649194","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":165,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"e244e308-8c1b-46bc-8a9c-a567a4e5801c","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":165,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"ab18d758-6b4b-4ae3-8e9a-1837727195c5","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":165,"box":{"x":70,"y":324,"width":818,"height":12}},{"id":"034821cf-8674-4e04-8fbc-4f12e526357c","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":165,"box":{"x":69,"y":339,"width":641,"height":12}},{"id":"d422d226-75fb-43e1-8038-723d7465d05a","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":165,"box":{"x":102,"y":362,"width":786,"height":11}},{"id":"a398b71b-b64e-4842-bf87-14c281d82913","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":165,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"d42a32a4-a5a1-423c-b906-4915751a69e5","block_type":"box","text":"of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to","page_number":165,"box":{"x":69,"y":392,"width":780,"height":12}},{"id":"c66692fe-8fc5-4c39-a0ac-2efd93daf125","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":165,"box":{"x":70,"y":407,"width":810,"height":12}},{"id":"e461e74f-cbec-4ddc-8faa-d31610ee4677","block_type":"box","text":"increase the costs associated with selling assets or affect their liquidity due to a Fund’s inability to obtain a third","page_number":165,"box":{"x":70,"y":423,"width":810,"height":11}},{"id":"6bcc5896-733e-4ae5-b523-350ec7db9673","block_type":"box","text":"par ty determination of fair market value.","page_number":165,"box":{"x":70,"y":438,"width":285,"height":11}},{"id":"af052700-c1f9-4c51-a689-d8526e8d693a","block_type":"box","text":"Computation of Offering Price Per Share","page_number":165,"box":{"x":69,"y":468,"width":292,"height":11}},{"id":"dce0bf02-f86c-4011-bcca-a3bbfa7de006","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":165,"box":{"x":102,"y":491,"width":791,"height":11}},{"id":"6801ad6d-3d88-4f97-83b2-1f658fd06fff","block_type":"box","text":"the offering price for shares of your Fund.","page_number":165,"box":{"x":68,"y":506,"width":295,"height":11}},{"id":"b9bc077f-3aab-483a-a633-f248b8e781ad","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":165,"box":{"x":303,"y":535,"width":373,"height":10}},{"id":"ae8ae80d-b358-412b-9424-837cd3430a1f","block_type":"box","text":"Transactions in Portfolio Securities","page_number":165,"box":{"x":68,"y":566,"width":257,"height":9}},{"id":"6de934f0-b166-46c6-9ff6-88ace0ee48f8","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":165,"box":{"x":102,"y":588,"width":798,"height":11}},{"id":"5eb883fc-69f6-4a1d-89df-0420c67ebfdc","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":165,"box":{"x":69,"y":603,"width":839,"height":12}},{"id":"74d3321f-6f66-4749-a7f4-afd927d98d5d","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":165,"box":{"x":70,"y":618,"width":822,"height":12}},{"id":"2dfbd6f3-55aa-4c40-9b10-47604890a513","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":165,"box":{"x":69,"y":634,"width":820,"height":11}},{"id":"690f254f-519b-420b-a3ab-f0d0073778dd","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":165,"box":{"x":68,"y":649,"width":798,"height":11}},{"id":"4b30594a-8330-4c92-993d-dd09a50e13cd","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":165,"box":{"x":69,"y":664,"width":765,"height":11}},{"id":"a623083b-0e93-4b15-9f73-daa358d0ea38","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":165,"box":{"x":69,"y":679,"width":768,"height":11}},{"id":"d9b76f46-1a32-4205-a97f-a01b50be1a44","block_type":"box","text":"BlackRock and its clients, including a Fund. In return for such services, BlackRock may cause a Fund to pay a higher","page_number":165,"box":{"x":70,"y":694,"width":830,"height":11}},{"id":"287db70f-ce7f-4202-9bc9-f5d4f8069c76","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":165,"box":{"x":69,"y":709,"width":760,"height":11}},{"id":"c27ba5ae-2291-469c-9791-1a40d2a27f66","block_type":"box","text":"reasonable in relation to the services provided.","page_number":165,"box":{"x":69,"y":725,"width":336,"height":10}},{"id":"0fad7fae-bfe3-432f-aeb2-6c0edd78df45","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":165,"box":{"x":102,"y":747,"width":794,"height":11}},{"id":"090bcc22-c881-41f6-b301-18bfa1ddc19b","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":165,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"2a5d9435-654e-4e75-9ac8-85792360a5d0","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":165,"box":{"x":102,"y":785,"width":784,"height":11}},{"id":"8099bdd4-0c8a-4334-9d63-ba08a3d1df10","block_type":"box","text":"the best price and most favorable execution for a Fund, taking into account a variety of factors including: (i) the size,","page_number":165,"box":{"x":68,"y":800,"width":829,"height":11}},{"id":"cb63e19b-99db-42ec-921e-d1aae1b3cc49","block_type":"box","text":"nature and character of the security or instrument being traded and the markets in which it is purchased or sold;","page_number":165,"box":{"x":69,"y":815,"width":802,"height":11}},{"id":"dc36a26b-e057-42fc-b871-2a10116d4762","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":165,"box":{"x":69,"y":830,"width":826,"height":11}},{"id":"b554f440-3493-4c1e-9b25-eccb5415eea9","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":165,"box":{"x":69,"y":845,"width":789,"height":12}},{"id":"76eaaa6e-f5e4-4254-a7cf-5febfb721eed","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":165,"box":{"x":70,"y":860,"width":818,"height":12}},{"id":"9441ea3b-c721-4cea-bc60-d53004fd4926","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":165,"box":{"x":69,"y":875,"width":769,"height":12}},{"id":"786453e3-ae2d-43e1-8594-3f95e5529cf4","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":165,"box":{"x":69,"y":891,"width":837,"height":11}},{"id":"9a2e7568-20fc-482d-8c80-16c670fc728f","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":165,"box":{"x":69,"y":906,"width":391,"height":11}},{"id":"6d4996fb-47d9-4882-a168-da39e8210228","block_type":"box","text":"II-125","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"dfa707c6-fe63-44a2-ac05-da70623365f9","block_type":"box","text":"NM1026U-5982643-165/241","page_number":165,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"c2e3b3ae-f88f-4578-8848-d8c5b58cb326","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":166,"box":{"x":102,"y":45,"width":801,"height":11}},{"id":"9b47b74a-88de-4ace-bbff-7a1a22cdf890","block_type":"box","text":"to cause an account to pay a broker or dealer a commission for effecting a transaction that exceeds the amount","page_number":166,"box":{"x":68,"y":60,"width":802,"height":11}},{"id":"caacdc16-c6cb-40bb-b407-fc043bcc79c7","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":166,"box":{"x":69,"y":75,"width":775,"height":11}},{"id":"f3d06faf-366e-4cda-9150-4a11fb0b34f0","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":166,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"7220b8ff-3218-4c32-9f08-ee120c0585ea","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":166,"box":{"x":70,"y":105,"width":827,"height":11}},{"id":"e2f2d6b1-06a7-44ac-90ce-7573f2cb5344","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":166,"box":{"x":68,"y":120,"width":753,"height":12}},{"id":"520a664e-c87e-4f49-9823-e34b42130ffc","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":166,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"ec0b1041-abbc-4b9b-85b8-4b25407a17ac","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":166,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"2b6f7ef6-a46a-4690-8b47-a92a7b7c37e2","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":166,"box":{"x":70,"y":166,"width":775,"height":11}},{"id":"3d9f42a8-60c5-4a3e-a54a-b44d1b6f114c","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":166,"box":{"x":69,"y":181,"width":764,"height":11}},{"id":"878b8626-9bfc-460a-ab40-9cc8f67dbed3","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":166,"box":{"x":69,"y":196,"width":770,"height":11}},{"id":"0ff29db7-9928-4d8f-93ce-791c51981dc8","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":166,"box":{"x":69,"y":211,"width":599,"height":11}},{"id":"2795d049-6c1d-4eab-a4c3-b19ef803a8fb","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":166,"box":{"x":102,"y":234,"width":796,"height":11}},{"id":"56935942-9ed2-44ad-8648-37982f482c85","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":166,"box":{"x":70,"y":249,"width":829,"height":11}},{"id":"2fb96fbf-e89d-4650-b000-b9c7001c6b01","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":166,"box":{"x":68,"y":264,"width":839,"height":11}},{"id":"d2aeba26-aa3a-4744-944f-75f5f76bca7b","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":166,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"fa920bdf-ae0f-45aa-8404-21e06f9cbf58","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":166,"box":{"x":69,"y":294,"width":809,"height":11}},{"id":"84ea5e10-6802-4ac3-9d94-7dfe19b615d8","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e).","page_number":166,"box":{"x":69,"y":309,"width":703,"height":11}},{"id":"305cb59a-7a92-457d-987a-e05c452d8a88","block_type":"box","text":"Cer tain Funds may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment","page_number":166,"box":{"x":102,"y":332,"width":743,"height":11}},{"id":"e6305069-325b-437b-9513-7bcc2d4790ea","block_type":"box","text":"managers, including BIL, pay for any research out of their own resources and not through soft dollars or commission","page_number":166,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"5e624c72-682b-412f-b7b3-b8a283ba802a","block_type":"box","text":"sharing arrangements. BlackRock regularly evaluates the soft dollar products and services utilized, as well as the","page_number":166,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"953feb90-d84f-4257-b2b9-76a2d6e4554d","block_type":"box","text":"overall soft dollar and commission sharing arrangements to ensure that trades are executed by firms that are","page_number":166,"box":{"x":69,"y":377,"width":781,"height":12}},{"id":"31bad432-5f8e-4803-972d-3e399b192228","block_type":"box","text":"regarded as best able to execute trades for client accounts, while at the same time providing access to the research","page_number":166,"box":{"x":69,"y":392,"width":832,"height":12}},{"id":"6d417fd2-9c1a-4537-81c9-1e3cf41f4673","block_type":"box","text":"and other services BlackRock views as impactful to its trading results.","page_number":166,"box":{"x":69,"y":407,"width":500,"height":12}},{"id":"bd30f6a9-9f22-4a5b-a3d2-4a3e8f82e81d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":166,"box":{"x":102,"y":430,"width":791,"height":11}},{"id":"4c79bbb2-9f55-4ee2-951b-e401b9fc6d7e","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":166,"box":{"x":69,"y":446,"width":819,"height":10}},{"id":"19c35438-d38c-417b-b215-7ac7bcc93d47","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":166,"box":{"x":69,"y":461,"width":772,"height":11}},{"id":"d66bc44c-64f8-4c07-9687-a4f0e00cc19c","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":166,"box":{"x":70,"y":476,"width":785,"height":11}},{"id":"35b96978-5754-4061-9414-7fb51d8371b2","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":166,"box":{"x":70,"y":491,"width":806,"height":11}},{"id":"cc23de85-cc84-4dc0-bc9f-e30bbd2b2bc2","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":166,"box":{"x":68,"y":506,"width":772,"height":11}},{"id":"16ea7191-b7fe-4743-959b-13e82ddfd746","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":166,"box":{"x":69,"y":521,"width":838,"height":11}},{"id":"126894dd-5931-4cf1-8e65-00dcabd05c66","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":166,"box":{"x":68,"y":536,"width":769,"height":11}},{"id":"4b48ffa2-fa6d-459d-84a8-c18d08caf5b0","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":166,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"f4798b8b-88b3-402c-a87c-9a300cb0ebb1","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":166,"box":{"x":69,"y":566,"width":778,"height":11}},{"id":"27d0d2e3-de4b-411b-b7b2-6b77c4ba89ba","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":166,"box":{"x":69,"y":582,"width":363,"height":11}},{"id":"dcf8ef55-f68d-4118-958b-cb90a82ea1fc","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":166,"box":{"x":102,"y":604,"width":749,"height":11}},{"id":"d022cc78-88dc-4363-90a5-0d6a33498fee","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":166,"box":{"x":69,"y":619,"width":799,"height":11}},{"id":"15f278e7-7a4e-4aa5-844a-e6256c8bfda0","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":166,"box":{"x":70,"y":634,"width":752,"height":12}},{"id":"478b2f08-adc3-4128-92a6-6bbcbb50dec8","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":166,"box":{"x":70,"y":649,"width":823,"height":11}},{"id":"22ab1a2e-c2ef-4b92-a98a-6147d0b64c2d","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":166,"box":{"x":70,"y":664,"width":822,"height":12}},{"id":"cb411435-430e-43f5-8615-4b1ec688d400","block_type":"box","text":"used in servicing some or all client accounts and not all services may be used in connection with the Fund or account","page_number":166,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"0365b392-d502-42a7-ac74-7f17aa37c327","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":166,"box":{"x":68,"y":695,"width":805,"height":11}},{"id":"32662311-a4a5-4494-89c9-942a5ec39cb6","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":166,"box":{"x":69,"y":710,"width":798,"height":11}},{"id":"d1bd71ea-5397-4599-b833-2af3c37ad13d","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":166,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"62794527-22df-4b31-b489-dda8a44a3553","block_type":"box","text":"paid by a Fund to BlackRock are not reduced as a result of BlackRock’s receipt of research services. In some cases,","page_number":166,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"d60aa746-3c59-4798-a09d-fea510f66514","block_type":"box","text":"BlackRock may receive a service from a broker that has both a “research” and a “non-research” use. When this","page_number":166,"box":{"x":70,"y":755,"width":798,"height":11}},{"id":"26a09e8f-e1f9-4e74-9678-223b2f19f46a","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":166,"box":{"x":69,"y":770,"width":780,"height":12}},{"id":"20983428-8c0a-4e69-88b8-2a13ace7f35e","block_type":"box","text":"research uses of the service. The percentage of the service that is used for research purposes may be paid for with","page_number":166,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"c67f0911-d572-4e0c-88a7-446527ddc5c4","block_type":"box","text":"client commissions, while BlackRock will use its own funds to pay for the percentage of the service that is used for","page_number":166,"box":{"x":69,"y":801,"width":821,"height":11}},{"id":"0c0507fd-6e34-43a3-9e55-d93699a2a07f","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":166,"box":{"x":69,"y":816,"width":797,"height":11}},{"id":"3cb1853d-3970-40cc-bd6f-85411543b279","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":166,"box":{"x":70,"y":831,"width":815,"height":11}},{"id":"2cbeb425-9fc7-4d56-8166-6d2a3b168967","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":166,"box":{"x":68,"y":846,"width":555,"height":11}},{"id":"a7ee309f-6c9f-422a-b82c-e11e3dd5d6f0","block_type":"box","text":"Under MiFID II, investment managers in the EU, including BIL, are not able to use soft dollars to pay for research","page_number":166,"box":{"x":102,"y":869,"width":802,"height":11}},{"id":"a2b75191-3045-4217-9538-7db24744728b","block_type":"box","text":"from brokers. Investment managers in the EU are required to either pay for research out of their own profit and loss","page_number":166,"box":{"x":68,"y":884,"width":825,"height":11}},{"id":"b8458878-c6b1-42be-b28c-278c5fcc2b62","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":166,"box":{"x":69,"y":899,"width":798,"height":11}},{"id":"74427c95-8148-4ccf-9940-860c373994a2","block_type":"box","text":"II-126","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8f6478e4-9e2f-4953-980d-380394227114","block_type":"box","text":"NM1026U-5982643-166/241","page_number":166,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"0547e4be-5318-4407-a848-f53b3074890f","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":167,"box":{"x":68,"y":45,"width":824,"height":11}},{"id":"34221cf6-aa79-4f5d-af3f-40b22274e966","block_type":"box","text":"payments for research are unbundled from the payments for execution. BIL will pay for any research out of its own","page_number":167,"box":{"x":70,"y":60,"width":812,"height":11}},{"id":"71250a19-fcb2-44b4-afe6-f8b61bbdd08e","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":167,"box":{"x":69,"y":75,"width":547,"height":11}},{"id":"655c6d44-9303-4187-9bd9-a06185de8ea3","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":167,"box":{"x":102,"y":98,"width":804,"height":11}},{"id":"33e6cfe2-1a6e-4f34-b8df-d07180318bcd","block_type":"box","text":"to the Feeder Fund (or affiliated persons of such persons), will be made in accordance with Rule 17e-1 under the","page_number":167,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"16bb77f2-136c-4c45-b6c3-5079d1448bcb","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":167,"box":{"x":70,"y":128,"width":836,"height":11}},{"id":"b0f5fac9-3f66-4f6d-90c2-f0e633c8185e","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":167,"box":{"x":70,"y":143,"width":777,"height":11}},{"id":"2da975e1-bd56-45b2-9fa4-3cc15c258915","block_type":"box","text":"brokerage.","page_number":167,"box":{"x":69,"y":158,"width":74,"height":11}},{"id":"bd51bae2-706f-4038-8126-a19d0bfa0818","block_type":"box","text":"From time to time, a Fund may purchase new issues of securities in a fixed price offering. In these situations,","page_number":167,"box":{"x":102,"y":181,"width":781,"height":11}},{"id":"ce6e9799-9437-4e44-bb70-21bb772bbc74","block_type":"box","text":"the broker may be a member of the selling group that will, in addition to selling securities, provide BlackRock with","page_number":167,"box":{"x":68,"y":196,"width":810,"height":11}},{"id":"6d9038b3-a5a6-47bb-bcc4-f341528848f2","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":167,"box":{"x":69,"y":211,"width":771,"height":11}},{"id":"a0d8b3c3-e1fd-4876-91d0-5a1fcf0e5fb1","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":167,"box":{"x":69,"y":226,"width":818,"height":11}},{"id":"731b2079-9450-4964-91f4-f30c1cb1acde","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":167,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"39f90b0f-acac-431d-aaf9-6a1b824b4fa0","block_type":"box","text":"Section 28(e).","page_number":167,"box":{"x":69,"y":256,"width":99,"height":11}},{"id":"031677a6-ce3d-4d57-bf46-fd107d9c1f9b","block_type":"box","text":"BlackRock does not consider sales of shares of the mutual funds it advises as a factor in the selection of","page_number":167,"box":{"x":102,"y":279,"width":755,"height":9}},{"id":"535e0d1c-9487-4be2-9a42-d988ee4a8694","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":167,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"d8bfd656-8c94-4c07-b022-ea48bdc9c7e6","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":167,"box":{"x":69,"y":309,"width":799,"height":11}},{"id":"b8054ab2-3f54-4aed-8d8a-a7f3375689b8","block_type":"box","text":"execute transactions for those mutual funds.","page_number":167,"box":{"x":69,"y":324,"width":319,"height":9}},{"id":"06e7d123-f62b-4287-b7f9-cea7db3c9feb","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":167,"box":{"x":102,"y":347,"width":770,"height":11}},{"id":"3dcd53e9-e604-4b17-ac6b-e29dfe0e2b88","block_type":"box","text":"primarily on the principal stock exchanges of the applicable country. Foreign equity securities may be held by a Fund","page_number":167,"box":{"x":70,"y":362,"width":825,"height":11}},{"id":"d1fd8633-e6fe-44b1-9fd4-8e4a998fcb5e","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":167,"box":{"x":70,"y":377,"width":816,"height":12}},{"id":"9bed36a3-aec2-48de-b799-58c860e837e3","block_type":"box","text":"may be listed on stock exchanges, or traded in OTC markets in the United States or Europe, as the case may be.","page_number":167,"box":{"x":69,"y":392,"width":805,"height":12}},{"id":"9f59a081-2b31-4703-ad96-fb59e3b55883","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":167,"box":{"x":68,"y":408,"width":773,"height":11}},{"id":"321e566b-d3d0-41bc-86f7-70706c24e85c","block_type":"box","text":"commission rates. Because the shares of each Fund are redeemable on a daily basis in U.S. dollars, each Fund","page_number":167,"box":{"x":69,"y":423,"width":798,"height":11}},{"id":"38028a9e-d55d-4117-81a8-910bf88ecae8","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":167,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"f2a20bea-ad92-4f45-88ad-ecdde1a3875e","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":167,"box":{"x":69,"y":453,"width":754,"height":11}},{"id":"cadf6cc4-c764-43ec-98bd-97d6a21bc45e","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":167,"box":{"x":69,"y":468,"width":540,"height":11}},{"id":"da8ac72e-d85b-4884-9ed2-4fff127ae645","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":167,"box":{"x":102,"y":491,"width":798,"height":11}},{"id":"ddd01101-4eee-40dd-b4ef-05c657853918","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":167,"box":{"x":68,"y":506,"width":597,"height":11}},{"id":"4b33dd27-5021-4725-bad5-46349c978df2","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":167,"box":{"x":102,"y":529,"width":802,"height":11}},{"id":"8acd7f45-2ba6-49bc-a495-0fbb36d492ba","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":167,"box":{"x":68,"y":544,"width":822,"height":10}},{"id":"f6d4045a-d7ec-4b31-a424-2eaebeabf8fe","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":167,"box":{"x":69,"y":559,"width":804,"height":11}},{"id":"6905e1cc-9eaa-4cfe-ab10-5b7761a257c6","block_type":"box","text":"affiliated with such affiliated persons are prohibited from dealing with the Fund as principal in the purchase and sale","page_number":167,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"0782ccc4-e1c0-42cd-ae5b-7b6ad77f6815","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":167,"box":{"x":69,"y":589,"width":762,"height":11}},{"id":"2ffa2093-cd5a-4aee-96c6-2239fcc58f12","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":167,"box":{"x":68,"y":604,"width":770,"height":11}},{"id":"99ddc82b-8365-4547-a9d7-778015dc5e9c","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":167,"box":{"x":69,"y":619,"width":828,"height":11}},{"id":"d5a9d3f4-a704-458d-b83f-ad82d6525680","block_type":"box","text":"person of a Fund may serve as its broker in OTC transactions conducted on an agency basis provided that, among","page_number":167,"box":{"x":70,"y":634,"width":814,"height":12}},{"id":"ed92724c-1caa-4ac3-9cc8-52093b816aec","block_type":"box","text":"other things, the fee or commission received by such affiliated broker is reasonable and fair compared to the fee or","page_number":167,"box":{"x":69,"y":649,"width":825,"height":12}},{"id":"418d3a15-0937-42ef-9cfe-f5ed39009bcf","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":167,"box":{"x":69,"y":664,"width":645,"height":12}},{"id":"dfa46d9c-7bd8-4235-9922-14ee23f3cb3c","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":167,"box":{"x":102,"y":687,"width":797,"height":11}},{"id":"487953cf-e1ec-4292-995e-aaadab6c1466","block_type":"box","text":"normally traded on a “net” basis without a stated commission, through dealers acting for their own account and not","page_number":167,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"625f52f8-dac6-4f82-846d-ba3b6f8c6bef","block_type":"box","text":"as brokers. The Funds will primarily engage in transactions with these dealers or deal directly with the issuer unless a","page_number":167,"box":{"x":69,"y":718,"width":839,"height":11}},{"id":"eb5be0af-fd6b-48eb-b25d-ca41a6f98c8d","block_type":"box","text":"better price or execution could be obtained by using a broker. Prices paid to a dealer with respect to both foreign and","page_number":167,"box":{"x":69,"y":732,"width":833,"height":12}},{"id":"e2813024-bb9d-4a2f-889e-0dfa5a4af523","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":167,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"7561dea0-dba2-4124-aa99-7d49ba7e1d74","block_type":"box","text":"is willing to purchase and sell the specific security at the time, and includes the dealer’s normal profit.","page_number":167,"box":{"x":70,"y":763,"width":730,"height":11}},{"id":"4bec9ed1-6c59-40f2-9c23-c7b06fd653af","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":167,"box":{"x":102,"y":785,"width":800,"height":12}},{"id":"e4d998c0-6bcf-4371-9e45-0dbffae58a5c","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":167,"box":{"x":69,"y":801,"width":807,"height":11}},{"id":"e14313f2-1f59-4373-81a9-bf9be6b9858f","block_type":"box","text":"instruments are generally traded on a “net” basis with dealers acting as principal for their own accounts without a","page_number":167,"box":{"x":70,"y":816,"width":812,"height":11}},{"id":"0b07b24d-5c80-485b-95d6-bd82f87fa816","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":167,"box":{"x":69,"y":831,"width":807,"height":11}},{"id":"be302d1f-77bb-46d4-9c7c-0320c76af895","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":167,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"ce9f8f6d-4069-4dfb-a5eb-5171ca308068","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":167,"box":{"x":68,"y":861,"width":817,"height":11}},{"id":"c2169f16-6e5b-4206-b7cf-cef84e804e1d","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":167,"box":{"x":69,"y":876,"width":802,"height":11}},{"id":"e0753a52-c6f8-468a-b1d7-858612f860af","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":167,"box":{"x":69,"y":891,"width":700,"height":11}},{"id":"caa0fff5-d66e-4077-bf50-b49dec5bba3b","block_type":"box","text":"II-127","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5d0c85e9-5173-460d-a4b3-ed8257b62c94","block_type":"box","text":"NM1026U-5982643-167/241","page_number":167,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"9f0c6b7f-e415-4302-9fb4-b83c42b17e61","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":168,"box":{"x":102,"y":45,"width":756,"height":11}},{"id":"bc5a7394-a911-4829-8a80-a53f713cd214","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":168,"box":{"x":68,"y":60,"width":804,"height":11}},{"id":"e23f2a3e-b53d-42e5-811a-f039d517c105","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":168,"box":{"x":69,"y":75,"width":766,"height":11}},{"id":"1e15e8ff-6ce2-42db-aae0-0294dd90f883","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":168,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"14993ce0-db67-42ed-8d43-d7a6a72cf499","block_type":"box","text":"selling commercial paper to consider the repurchase of such securities from a Fund prior to maturity at their original","page_number":168,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"9e77ec6f-7dd0-4165-ade4-469f014a23b1","block_type":"box","text":"cost plus interest (sometimes adjusted to reflect the actual maturity of the securities), if it believes that a Fund’s","page_number":168,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"7f790269-7713-488d-a3e6-826c91e7e9d7","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":168,"box":{"x":69,"y":143,"width":776,"height":11}},{"id":"008ba653-ec7d-4d1a-bf91-0b5a4e054972","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":168,"box":{"x":70,"y":158,"width":800,"height":11}},{"id":"708347ab-f5b3-4ecf-953e-b4f20341392b","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":168,"box":{"x":69,"y":173,"width":352,"height":11}},{"id":"defd3bd4-35aa-4a4f-b55a-d1400ee13cda","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":168,"box":{"x":102,"y":196,"width":800,"height":11}},{"id":"1bcd3e30-0f8e-4e42-9f4a-1509151f5bb0","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":168,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"0f71c17d-ff83-4fe0-820e-a4e49f848eb4","block_type":"box","text":"accounts in a fair and equitable manner over time. A variety of factors will be considered in making such allocations.","page_number":168,"box":{"x":69,"y":226,"width":828,"height":11}},{"id":"2ae92558-6e74-448c-bbd5-31a860975c34","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":168,"box":{"x":68,"y":241,"width":788,"height":11}},{"id":"4369ef30-a8f3-43cc-890d-b9830e6125d5","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":168,"box":{"x":69,"y":256,"width":759,"height":12}},{"id":"f4920853-7f19-4be1-8536-44d414f185c7","block_type":"box","text":"concentration parameters for an account, (iv) supply or demand for a security at a given price level, (v) size of","page_number":168,"box":{"x":69,"y":271,"width":780,"height":12}},{"id":"98c0767a-4569-40d4-9bb1-647a24c4ce3b","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":168,"box":{"x":69,"y":286,"width":777,"height":12}},{"id":"98990672-86f0-454e-a293-126d36b8ff1c","block_type":"box","text":"(viii) minimum investment size of an account, (ix) relative size of account, and (x) such other factors as may be","page_number":168,"box":{"x":69,"y":302,"width":788,"height":11}},{"id":"5cb58a72-0466-4816-942d-5159f307e18f","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":168,"box":{"x":69,"y":317,"width":811,"height":11}},{"id":"6380f891-d191-43f5-b699-635ca8fc04b1","block_type":"box","text":"another based on any of the following considerations: (i) to favor one client account at the expense of another, (ii) to","page_number":168,"box":{"x":69,"y":332,"width":829,"height":11}},{"id":"886a2e8c-4b84-4f7e-a88c-453453c8e42e","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":168,"box":{"x":68,"y":347,"width":808,"height":11}},{"id":"236e9db7-4cd0-42ab-89b3-5793ebc24a5a","block_type":"box","text":"BlackRock, (iii) to develop or enhance a relationship with a client or prospective client, (iv) to compensate a client for","page_number":168,"box":{"x":70,"y":362,"width":832,"height":11}},{"id":"839611b6-d261-4187-8809-131bad0000df","block_type":"box","text":"past services or benefits rendered to BlackRock or to induce future services or benefits to be rendered to BlackRock,","page_number":168,"box":{"x":70,"y":377,"width":836,"height":11}},{"id":"de48e2d3-89c6-480b-a163-4f0aed02a10c","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":168,"box":{"x":69,"y":392,"width":613,"height":12}},{"id":"ac097bcd-58ec-41dd-ba3c-606443aaa715","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":168,"box":{"x":102,"y":415,"width":802,"height":11}},{"id":"af771ce9-9166-42d6-b159-4d0346b12eae","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":168,"box":{"x":69,"y":430,"width":800,"height":11}},{"id":"d1ed6fa4-5ff3-4031-8068-dadc3d30fb53","block_type":"box","text":"accounts and compliance constraints.","page_number":168,"box":{"x":69,"y":446,"width":269,"height":10}},{"id":"cc081126-83f8-4d4d-b774-206c39cd5c28","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":168,"box":{"x":102,"y":468,"width":736,"height":11}},{"id":"d23b46e9-6fee-443d-828b-587bfcb2ccc6","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":168,"box":{"x":69,"y":483,"width":808,"height":11}},{"id":"8caa82e1-c968-4434-a6d0-f69e0a66745e","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":168,"box":{"x":69,"y":498,"width":821,"height":11}},{"id":"72d42fd1-0ca4-4487-9e28-28b824ed12af","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":168,"box":{"x":69,"y":513,"width":823,"height":12}},{"id":"bc37f093-2378-4862-bd75-d121d3e89712","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":168,"box":{"x":70,"y":528,"width":783,"height":12}},{"id":"f23aaa76-8eb4-4838-8427-15e83d75409c","block_type":"box","text":"accounts for which that team is responsible. Initial public offerings of U.S. equity securities will be identified as","page_number":168,"box":{"x":69,"y":543,"width":793,"height":12}},{"id":"2420f3e3-a6f9-49d5-b6ef-9413e4ff06f1","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":168,"box":{"x":69,"y":559,"width":831,"height":11}},{"id":"91060a2c-5d02-44ee-a86e-d4789503d3ce","block_type":"box","text":"based on market capitalization of the issuer of the security and the investment mandate of the client account and in","page_number":168,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"f2845e4f-6156-4d84-b40e-2631e96a90f6","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":168,"box":{"x":68,"y":589,"width":839,"height":11}},{"id":"1f152d21-1320-4028-a013-9a19d1e5f41b","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":168,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"c0642802-5d56-4f80-a1c8-cfcffc7f1f98","block_type":"box","text":"client accounts within each investment mandate on a pro rata basis. In situations where supply is too limited to be","page_number":168,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"a6867664-8809-461d-b1b0-5b8ae326d534","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":168,"box":{"x":69,"y":634,"width":808,"height":12}},{"id":"685e8092-7ab7-4c2b-abf8-f06672472a98","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":168,"box":{"x":69,"y":649,"width":791,"height":12}},{"id":"91e31280-3b1d-45f7-b499-ba89a8d1312b","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":168,"box":{"x":69,"y":664,"width":799,"height":12}},{"id":"923577ce-2564-40dd-9488-9a630f2ac5ca","block_type":"box","text":"clients may be used as well.","page_number":168,"box":{"x":69,"y":680,"width":200,"height":11}},{"id":"cffafeb4-76e2-4403-94fd-47c723b4e832","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":168,"box":{"x":102,"y":702,"width":789,"height":12}},{"id":"0a1e05d1-faca-4ea5-8f4c-b26e2675dd79","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":168,"box":{"x":68,"y":717,"width":815,"height":12}},{"id":"31e299ad-70e9-4e5e-b854-0b760b48b9a5","block_type":"box","text":"and strategies of those accounts. For example, BlackRock may decide that it may be entirely appropriate for a growth","page_number":168,"box":{"x":69,"y":732,"width":835,"height":12}},{"id":"d4f82066-be08-484c-a17d-87f884b232de","block_type":"box","text":"fund to sell a security at the same time a value fund is buying that security. To the extent that transactions on behalf","page_number":168,"box":{"x":68,"y":748,"width":833,"height":11}},{"id":"54bbe259-bf44-4019-8661-53ee57daa709","block_type":"box","text":"of more than one client of BlackRock or its affiliates during the same period may increase the demand for securities","page_number":168,"box":{"x":69,"y":763,"width":829,"height":11}},{"id":"75a85ca6-16b3-4747-8e4d-acacb0eeb7be","block_type":"box","text":"being purchased or the supply of securities being sold, there may be an adverse effect on price. For example, sales","page_number":168,"box":{"x":69,"y":778,"width":825,"height":11}},{"id":"18e11ea9-f43f-4985-b24f-02724f95e7ac","block_type":"box","text":"of a security by BlackRock on behalf of one or more of its clients may decrease the market price of such security,","page_number":168,"box":{"x":69,"y":793,"width":806,"height":11}},{"id":"8217e9d6-210f-445f-abe6-a33b17507be6","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":168,"box":{"x":69,"y":808,"width":814,"height":11}},{"id":"64ea32b3-3da5-456d-b550-cb2df3fbed9d","block_type":"box","text":"consideration at or about the same time that would involve a Fund or other clients or funds for which BlackRock or an","page_number":168,"box":{"x":69,"y":823,"width":836,"height":9}},{"id":"d1e9ae0e-8da8-4734-a812-d5492eed4b5f","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":168,"box":{"x":69,"y":838,"width":773,"height":12}},{"id":"403a06a1-34ac-4881-8099-f05bbed81006","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":168,"box":{"x":69,"y":853,"width":467,"height":11}},{"id":"a2da076d-4f5b-4787-8da0-3dd0b47154d7","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":168,"box":{"x":102,"y":876,"width":741,"height":11}},{"id":"62a7e01f-a922-4400-b590-292a0edee007","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":168,"box":{"x":69,"y":891,"width":721,"height":12}},{"id":"d29c903b-48dc-4036-b325-5b7a7d311b88","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":168,"box":{"x":69,"y":906,"width":824,"height":12}},{"id":"4faeea2c-8cce-467e-85a3-f79566c605cf","block_type":"box","text":"II-128","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"10385098-6fe1-499c-a023-74d2b2a9210b","block_type":"box","text":"NM1026U-5982643-168/241","page_number":168,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"5397ec36-04aa-4fd3-b68f-264ae9da5c93","block_type":"box","text":"will be aggregated in a single order if the trader believes the aggregated trade would provide each client with an","page_number":169,"box":{"x":68,"y":45,"width":795,"height":11}},{"id":"d44c45a4-9795-4836-9934-e1a782a54e40","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":169,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"9e8c0ef5-eca2-4753-bd6d-ed60c155f9c3","block_type":"box","text":"aggregated order will be shared pro rata among the clients in the aggregated order. Generally, if an order for a","page_number":169,"box":{"x":69,"y":75,"width":783,"height":11}},{"id":"b026dce0-9ea7-453b-9a03-74528b24ea8e","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":169,"box":{"x":70,"y":90,"width":796,"height":11}},{"id":"be82e93f-af18-4929-bc70-e23b59e68db9","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":169,"box":{"x":69,"y":105,"width":821,"height":11}},{"id":"57a07b52-e33b-464d-890f-8587108d6154","block_type":"box","text":"where average pricing is not permitted. While in some cases this practice could have a detrimental effect upon the","page_number":169,"box":{"x":68,"y":120,"width":819,"height":12}},{"id":"5b114f52-6458-4949-855c-447271fd0e70","block_type":"box","text":"price or value of the security as far as a Fund is concerned, in other cases it could be beneficial to the Fund.","page_number":169,"box":{"x":70,"y":135,"width":771,"height":11}},{"id":"bfb449d4-5acf-4524-8e78-0b331b070b1b","block_type":"box","text":"Transactions effected by BlackRock on behalf of more than one of its clients during the same period may increase","page_number":169,"box":{"x":68,"y":150,"width":815,"height":12}},{"id":"ea4d22f7-778c-4e97-be7d-95a605300cc2","block_type":"box","text":"the demand for securities being purchased or the supply of securities being sold, causing an adverse effect on price.","page_number":169,"box":{"x":68,"y":166,"width":835,"height":11}},{"id":"c237a634-08e2-4940-bf58-e3fbf6a2ac58","block_type":"box","text":"The trader will give the aggregated order to the broker-dealer that the trader has identified as being able to provide","page_number":169,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"5f0d1cda-3492-4442-9d2e-824d22b73086","block_type":"box","text":"the best execution of the order. Orders for purchase or sale of securities will be placed within a reasonable amount","page_number":169,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"ed36967e-7375-4f90-8401-90e46270203a","block_type":"box","text":"of time of the order receipt and aggregated orders will be kept aggregated only long enough to execute the order.","page_number":169,"box":{"x":69,"y":211,"width":803,"height":11}},{"id":"f469a088-a1b7-4be7-8bbc-1449c8b89980","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":169,"box":{"x":101,"y":234,"width":767,"height":11}},{"id":"c64a492e-4f70-409d-9e62-c7bf989dd944","block_type":"box","text":"securities of which BlackRock, BRIL or any affiliated person (as defined in the Investment Company Act) thereof is a","page_number":169,"box":{"x":69,"y":249,"width":826,"height":11}},{"id":"afb55cd0-80ff-4ec5-a3ef-aee900f99541","block_type":"box","text":"member except pursuant to procedures adopted by the Board of Directors in accordance with Rule 10f-3 under the","page_number":169,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"9183e337-1989-41a4-9915-09d07247fa17","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":169,"box":{"x":70,"y":279,"width":833,"height":11}},{"id":"40e5cb38-3003-491d-a06f-6b05b76e4224","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":169,"box":{"x":69,"y":294,"width":818,"height":11}},{"id":"e7e07c45-d010-4289-84ff-fe42a97a775f","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":169,"box":{"x":101,"y":317,"width":786,"height":11}},{"id":"c94d87b8-a68a-45ae-a453-f2ed19d453c2","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":169,"box":{"x":69,"y":332,"width":814,"height":11}},{"id":"bb715edc-0114-4ce0-bc67-46901791afae","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":169,"box":{"x":69,"y":347,"width":751,"height":11}},{"id":"828fe496-58ff-4610-b6c3-4534cae73306","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":169,"box":{"x":68,"y":362,"width":829,"height":11}},{"id":"814d16da-63b6-4a7d-a12d-6caeefe26dd5","block_type":"box","text":"to all by BlackRock. In some cases, this procedure could have a detrimental effect on the price or volume of the","page_number":169,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"7e6c0ad1-65c1-4e7a-a533-0766f7d3e45f","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":169,"box":{"x":69,"y":392,"width":834,"height":12}},{"id":"461c6267-a4ea-4e4d-bc97-540007812f7d","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":169,"box":{"x":68,"y":407,"width":820,"height":12}},{"id":"f22095d2-8901-466a-bdf5-9556322205fe","block_type":"box","text":"invest for its own account in the types of securities in which a Fund may invest. BlackRock may, from time to time,","page_number":169,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"9ba8b4a7-2d24-43b0-928b-0b28f0c224d5","block_type":"box","text":"effect trades on behalf of and for the account of a Fund with brokers or dealers that are affiliated with BFA, in","page_number":169,"box":{"x":69,"y":438,"width":781,"height":10}},{"id":"6f99da40-9fe8-42d4-b603-9630ff7f8639","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":169,"box":{"x":69,"y":453,"width":805,"height":11}},{"id":"7b459f9f-adcd-4b4a-a95a-37ad68e246a2","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":169,"box":{"x":69,"y":468,"width":840,"height":11}},{"id":"a6614598-c69d-443f-8153-86a78f8f7e01","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":169,"box":{"x":69,"y":483,"width":815,"height":11}},{"id":"f5861c8a-e736-4538-872f-5bfa953dc148","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":169,"box":{"x":69,"y":498,"width":713,"height":11}},{"id":"55956797-c703-4b27-b422-7ed3cb11604f","block_type":"box","text":"Portfolio Turnover","page_number":169,"box":{"x":69,"y":528,"width":129,"height":9}},{"id":"5155870d-72f3-46f7-9025-bac028087009","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":169,"box":{"x":101,"y":551,"width":798,"height":11}},{"id":"a5d2cf84-42d9-48da-96df-b0eb3c37982f","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":169,"box":{"x":69,"y":566,"width":839,"height":11}},{"id":"38ee6c6b-2954-4779-8243-9d6112a57292","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":169,"box":{"x":68,"y":581,"width":814,"height":12}},{"id":"83c78103-3274-4a3e-b24f-ad237475f1a4","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":169,"box":{"x":68,"y":596,"width":777,"height":12}},{"id":"0b6ddc19-7721-424b-9c2d-b995adfc30b8","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":169,"box":{"x":69,"y":612,"width":818,"height":11}},{"id":"c85192eb-8f35-40db-a56e-396f8cbb426d","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":169,"box":{"x":69,"y":627,"width":519,"height":11}},{"id":"826096ce-fe97-43fd-a0ea-6f3e7f71db07","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":169,"box":{"x":396,"y":656,"width":186,"height":10}},{"id":"f99960ca-b02d-4fcb-82cd-69d5d60ecaa7","block_type":"box","text":"Dividends","page_number":169,"box":{"x":69,"y":687,"width":69,"height":9}},{"id":"b29607ce-0c9d-4e7f-a8f2-ecc4f22e9cf3","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":169,"box":{"x":102,"y":709,"width":776,"height":11}},{"id":"52e59b56-8c62-4a5a-b484-087893997674","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":169,"box":{"x":70,"y":724,"width":795,"height":11}},{"id":"50ac0709-f142-47f8-8d00-81e7cea5c233","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":169,"box":{"x":69,"y":739,"width":837,"height":12}},{"id":"c2bb8575-9de6-4f12-8970-ce4bfecc2894","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":169,"box":{"x":69,"y":755,"width":836,"height":11}},{"id":"1dcf2f66-224d-4ecd-9a2c-16404195421b","block_type":"box","text":"percentages of its ordinary income and capital gains be distributed during the year. If, in any fiscal year, a Fund has","page_number":169,"box":{"x":70,"y":770,"width":822,"height":11}},{"id":"8631d8c7-53b7-4b94-a57a-b6f9752b217c","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":169,"box":{"x":69,"y":785,"width":739,"height":11}},{"id":"9abf9362-ce37-4b38-992a-7f8706d21dfb","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":169,"box":{"x":102,"y":807,"width":773,"height":12}},{"id":"9b34cb6b-24f7-4b5e-8a39-861d51c665f6","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":169,"box":{"x":70,"y":823,"width":819,"height":11}},{"id":"eae62dbf-bdd2-4998-99c2-cb0e44782746","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":169,"box":{"x":69,"y":838,"width":807,"height":11}},{"id":"da3190d8-d59e-478f-9a80-bd62c4e4a8f1","block_type":"box","text":"whether they are reinvested in shares of the Fund or received in cash. The per share dividends on front-end load","page_number":169,"box":{"x":68,"y":853,"width":800,"height":11}},{"id":"1e74dbae-b827-4e13-8930-98d8ae4e4f01","block_type":"box","text":"shares, CDSC shares and Service Shares will be lower than the per share dividends on Institutional Shares as a","page_number":169,"box":{"x":69,"y":868,"width":801,"height":11}},{"id":"81f71c6c-702a-495b-808d-4052fc91d14e","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":169,"box":{"x":69,"y":883,"width":783,"height":11}},{"id":"08b0ef9d-3bba-43d1-9b30-81608315af49","block_type":"box","text":"applicable to front-end load shares and Service Shares, and the service and distribution fees applicable to Class R","page_number":169,"box":{"x":69,"y":898,"width":820,"height":11}},{"id":"bbc1968b-5572-46f0-9171-c1aace35b1d7","block_type":"box","text":"II-129","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0a1fe79b-7e09-457a-bbe7-f77f676a045a","block_type":"box","text":"NM1026U-5982643-169/241","page_number":169,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"e58efd36-a744-4641-9cf4-1391672a9594","block_type":"box","text":"Shares. Similarly, the per share dividends on CDSC shares and Class R Shares will be lower than the per share","page_number":170,"box":{"x":69,"y":45,"width":794,"height":11}},{"id":"46f1ec80-2af0-4a72-96df-c59ede62aa89","block_type":"box","text":"dividends on front-end load shares and Service Shares as a result of the distribution fees and higher transfer agency","page_number":170,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"c9cf03aa-d3fc-4f13-904c-482bf485d764","block_type":"box","text":"fees applicable to CDSC shares and the distribution fees applicable to Class R Shares, and the per share dividends","page_number":170,"box":{"x":68,"y":75,"width":826,"height":11}},{"id":"26325da7-c294-4613-9c3d-a43e15c4e46e","block_type":"box","text":"on CDSC shares will be lower than the per share dividends on Class R Shares as a result of the higher distribution","page_number":170,"box":{"x":69,"y":90,"width":816,"height":11}},{"id":"1cc58e66-bfae-4044-9d86-1e4b6a687475","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":170,"box":{"x":68,"y":105,"width":461,"height":11}},{"id":"bb9cf78e-ed2d-4da4-af06-5548826dac8a","block_type":"box","text":"Taxes","page_number":170,"box":{"x":68,"y":136,"width":42,"height":8}},{"id":"3638e3fb-16c7-4305-b47b-925e0002c8c7","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":170,"box":{"x":102,"y":158,"width":732,"height":11}},{"id":"9f504a7a-8052-44e0-9c3f-9ddc6136d430","block_type":"box","text":"companies under the Code. As long as a Fund so qualifies, the Fund (but not its shareholders) will not be subject to","page_number":170,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"3d8fa9f5-5870-4346-a4f3-08c51b4fc951","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":170,"box":{"x":70,"y":188,"width":817,"height":12}},{"id":"d52a749a-123a-482c-9fc9-ae825a4c64f1","block_type":"box","text":"distributes to its shareholders in years in which it distributes at least 90% of its investment company taxable income","page_number":170,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"b5d8943a-a8a0-4e64-9780-953c4f273bad","block_type":"box","text":"and at least 90% of its net tax-exempt interest income, if any, for the year. To qualify as a regulated investment","page_number":170,"box":{"x":69,"y":218,"width":791,"height":12}},{"id":"b1762144-cd0e-44df-85e1-fb419641f643","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":170,"box":{"x":69,"y":234,"width":786,"height":11}},{"id":"52cb7bb8-579e-48da-8e7b-5f79ea334b15","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":170,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"a94b965c-69f2-4975-b324-4581f3792b4e","block_type":"box","text":"for a discussion of the asset diversification requirements. In the case of a Feeder Fund, such Fund may look to the","page_number":170,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"db473c97-c181-4817-9682-7fe23bb88e69","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":170,"box":{"x":69,"y":279,"width":824,"height":11}},{"id":"c23acb67-2fb3-4122-a181-a8edba53da62","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":170,"box":{"x":69,"y":294,"width":739,"height":11}},{"id":"698b12d7-ed46-4bd3-89db-bfd07834ba6a","block_type":"box","text":"A Fund may be able to cure a failure to derive at least 90% of its income from the sources specified above or a","page_number":170,"box":{"x":101,"y":317,"width":792,"height":11}},{"id":"4a2d5cf6-cd07-49f4-b5bb-8a410dabfefe","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":170,"box":{"x":68,"y":332,"width":819,"height":11}},{"id":"2fd6a3b8-38ed-42b4-8ed8-020c6cc9496f","block_type":"box","text":"paying a tax and disposing of assets. If, in any taxable year, a Fund fails one of these tests and does not timely cure","page_number":170,"box":{"x":70,"y":347,"width":830,"height":11}},{"id":"ab90cc11-25f8-4854-8953-3b5da0c460c6","block_type":"box","text":"the failure, the Fund will be taxed in the same manner as an ordinary corporation and distributions to its","page_number":170,"box":{"x":68,"y":362,"width":744,"height":11}},{"id":"97bef477-3d2a-4449-82bb-2ed73d208d12","block_type":"box","text":"shareholders will not be deductible by the Fund in computing its taxable income. Although in general the passive loss","page_number":170,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"967fe387-607b-4c14-94f8-4bde0ef65989","block_type":"box","text":"rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment","page_number":170,"box":{"x":69,"y":392,"width":808,"height":12}},{"id":"b2318061-489d-4e39-a05d-345f8a1097f1","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":170,"box":{"x":69,"y":407,"width":767,"height":12}},{"id":"2ceb26cc-8925-427b-bc91-74c9d2bf533a","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":170,"box":{"x":70,"y":423,"width":826,"height":11}},{"id":"97e11b17-3688-4925-a016-a3f1bfdd91e0","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":170,"box":{"x":68,"y":438,"width":521,"height":11}},{"id":"248bf2de-d569-4cd1-acb9-6d3414224364","block_type":"box","text":"Each Fund intends to distribute substantially all of such income and gains. If, in any taxable year, a Fund fails to","page_number":170,"box":{"x":102,"y":460,"width":798,"height":12}},{"id":"53d0c428-8013-46a2-82a4-2682b80d0926","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":170,"box":{"x":69,"y":475,"width":762,"height":12}},{"id":"e8515ea2-ee90-49f3-acf9-2959ff13c620","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":170,"box":{"x":70,"y":491,"width":789,"height":11}},{"id":"2ed4d299-5e5d-4a5c-856c-d3be180b4c9c","block_type":"box","text":"earnings and profits (as determined under U.S. federal income tax principles) to its shareholders would be taxable as","page_number":170,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"3d3e4c9e-cef5-4b42-8245-0168bb567f70","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":170,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"bd6e77c3-3db4-4bb4-85ea-7b6fb5164580","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":170,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"f3188f6d-8920-4129-8f21-d5f8a2628e4a","block_type":"box","text":"exempt obligations, as defined herein, would no longer qualify for treatment as exempt interest. Each Fund that is a","page_number":170,"box":{"x":69,"y":551,"width":825,"height":11}},{"id":"907172b2-3755-446d-a677-fb37e083de81","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":170,"box":{"x":69,"y":566,"width":811,"height":11}},{"id":"6cb04cd6-bb1b-4f6c-b778-67c49447a76b","block_type":"box","text":"U.S. federal income tax purposes, and therefore is considered to be a separate entity in determining its treatment","page_number":170,"box":{"x":70,"y":581,"width":813,"height":12}},{"id":"74247f48-a20e-4a62-bcb3-64a90c2463b9","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":170,"box":{"x":69,"y":596,"width":834,"height":12}},{"id":"763e5d07-4d15-4904-a2b4-b181f56ffe0a","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":170,"box":{"x":69,"y":612,"width":790,"height":11}},{"id":"2e9257b0-213b-46ce-a1b6-d3b45602b52c","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":170,"box":{"x":69,"y":627,"width":771,"height":11}},{"id":"ff6056d6-f0e7-4632-a2d1-994b83e6399f","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":170,"box":{"x":69,"y":642,"width":512,"height":11}},{"id":"980b9b20-f851-4c0b-b45c-7756457b9883","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":170,"box":{"x":101,"y":665,"width":759,"height":11}},{"id":"389cd283-4213-4b3a-881f-fc1742a8d8da","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":170,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"796b005c-4000-4ac9-81e9-d4c6c205ba01","block_type":"box","text":"determined on a calendar year basis, and at least 98.2% of its capital gain net income, determined, in general, as if","page_number":170,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"11610a37-c36d-42ec-9858-109f2311e092","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":170,"box":{"x":68,"y":710,"width":832,"height":11}},{"id":"a617c598-3b0a-482f-afb8-80e3b201086f","block_type":"box","text":"previous years. While each Fund intends to distribute its income and capital gains in the manner necessary to avoid","page_number":170,"box":{"x":70,"y":725,"width":825,"height":11}},{"id":"8a077906-00a9-421a-9eb2-2fdb8e5b7344","block_type":"box","text":"imposition of the 4% excise tax, there can be no assurance that a sufficient amount of the Fund’s taxable income","page_number":170,"box":{"x":70,"y":740,"width":810,"height":11}},{"id":"6ae717cc-fa83-4f6f-8e2c-329822017ad0","block_type":"box","text":"and capital gains will be distributed to avoid entirely the imposition of the tax. In such event, a Fund will be liable for","page_number":170,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"2109b4d7-9364-4955-a900-d5349ec5a3ab","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":170,"box":{"x":68,"y":770,"width":666,"height":12}},{"id":"eab07a38-98b6-45e1-b5f1-d02c26b1d6ab","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":170,"box":{"x":102,"y":793,"width":790,"height":11}},{"id":"4b6ebb90-1a86-4e18-b928-c402c1b63003","block_type":"box","text":"have been reduced to zero. In the event that the Fund were to experience an ownership change as defined under the","page_number":170,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"47e43819-beae-40c7-9c73-5ac39d21df90","block_type":"box","text":"Code, the Fund’s loss carryforwards and other favorable tax attributes of the Fund, if any, may be subject to","page_number":170,"box":{"x":69,"y":823,"width":770,"height":11}},{"id":"96119eeb-6352-415b-8952-dcc57e1e8bb8","block_type":"box","text":"limitation.","page_number":170,"box":{"x":70,"y":839,"width":68,"height":8}},{"id":"d55ec035-93a2-4489-aae1-9902c0f2d5ab","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":170,"box":{"x":102,"y":861,"width":803,"height":11}},{"id":"26dd1016-d0dc-4ff7-90de-5c46f5a53e8c","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":170,"box":{"x":68,"y":876,"width":790,"height":11}},{"id":"b6a48300-863b-4282-93b0-bc2824eebb9a","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":170,"box":{"x":70,"y":891,"width":815,"height":12}},{"id":"010234b1-3caa-427a-a393-350c9855e3ee","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":170,"box":{"x":68,"y":906,"width":748,"height":12}},{"id":"24b5bf9c-46d2-4219-92ec-2557803e77df","block_type":"box","text":"II-130","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7dbcebe2-95e6-4424-ad49-42f63a49ef63","block_type":"box","text":"NM1026U-5982643-170/241","page_number":170,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"654777fe-f770-4373-9fcf-d4aa8447d81f","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":171,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"6cab5381-c1e4-463d-8599-34586bda34cf","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":171,"box":{"x":70,"y":60,"width":829,"height":11}},{"id":"0e81cd97-9ed6-4cb8-b999-45d8cbf094e3","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":171,"box":{"x":70,"y":75,"width":785,"height":11}},{"id":"e6ce4bdc-8db5-4855-97d6-9b2eb34f35c1","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":171,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"f6044e6d-aabf-4e26-8500-6e240a362922","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":171,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"bec0da15-9206-4809-ad2c-9da6808e6fae","block_type":"box","text":"taxable to such shareholder at long-term capital gain rates provided the shareholder has held the shares on which","page_number":171,"box":{"x":68,"y":120,"width":814,"height":12}},{"id":"018c7a23-5d9a-4c62-a433-fab46e5fc594","block_type":"box","text":"the dividend was paid for at least 61 days during the 121-day period that begins on the date that is 60 days before","page_number":171,"box":{"x":68,"y":135,"width":822,"height":12}},{"id":"2169f836-65f4-4a5a-b3b0-9fdffe8e07a0","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":171,"box":{"x":68,"y":150,"width":751,"height":11}},{"id":"a1151f25-0c3b-4f9d-9ffc-733932b93c11","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":171,"box":{"x":69,"y":166,"width":823,"height":11}},{"id":"9df33b40-d688-4c67-bdd6-250c4ad7cfb2","block_type":"box","text":"was paid for at least 91 days during the 181-day period that begins on the date that is 90 days before the date on","page_number":171,"box":{"x":68,"y":181,"width":817,"height":11}},{"id":"c7e5affe-b0ca-4a35-855c-b7a0449fcc84","block_type":"box","text":"which the shares become ex-dividend with respect to such dividend). However, to the extent a Fund’s distributions","page_number":171,"box":{"x":68,"y":196,"width":813,"height":11}},{"id":"7a20ee38-944a-4962-9b91-1d14796a35f2","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":171,"box":{"x":69,"y":211,"width":825,"height":11}},{"id":"b8f32927-2d9d-44db-8394-2179144dce1b","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":171,"box":{"x":68,"y":226,"width":789,"height":11}},{"id":"cd0df158-9e4f-486d-acdb-7dc7e0f2d0c7","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":171,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"da14938b-25bd-470e-b01f-dc32f7ee3683","block_type":"box","text":"constitute “qualified dividend income.”","page_number":171,"box":{"x":69,"y":256,"width":275,"height":11}},{"id":"6c2430c0-7cfe-46d9-8cdf-165ecccd68ae","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":171,"box":{"x":101,"y":279,"width":806,"height":11}},{"id":"fd0049a7-bad3-4eed-9c3b-16dc71f5babd","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":171,"box":{"x":70,"y":294,"width":368,"height":11}},{"id":"0dddb364-36b9-49ef-8140-720d4cb77bb3","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":171,"box":{"x":101,"y":317,"width":772,"height":11}},{"id":"1ec530a5-7abc-48d7-a7bd-23e2d0d8b903","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":171,"box":{"x":69,"y":332,"width":811,"height":11}},{"id":"c2bcbe77-156f-4b97-8cc8-9c3e7b045279","block_type":"box","text":"Fund retains net capital gain, it is subject to tax on that gain, and may designate the retained amount as","page_number":171,"box":{"x":70,"y":347,"width":745,"height":11}},{"id":"c32e3684-cccf-4943-9bac-d4fbedf251a4","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":171,"box":{"x":69,"y":362,"width":795,"height":11}},{"id":"5b1014ac-f88d-4240-bc23-ff15355c600e","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":171,"box":{"x":70,"y":377,"width":838,"height":12}},{"id":"3e20df21-8e3b-4de9-bdcf-0c5957426210","block_type":"box","text":"have paid and may claim as a credit against their U.S. federal income tax liability (and as a refund to the extent it","page_number":171,"box":{"x":69,"y":392,"width":809,"height":12}},{"id":"fd95787f-f0c2-4ff6-9fcb-62960282ea98","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":171,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"d86a7b58-da77-47e6-a1dc-8e9c1e9896ee","block_type":"box","text":"basis of their shares in the Fund by the excess of the amount included in income over the amount allowed as a credit","page_number":171,"box":{"x":69,"y":423,"width":838,"height":11}},{"id":"4708eb27-d84e-4b95-9ca5-261e127757c7","block_type":"box","text":"against their taxes.","page_number":171,"box":{"x":69,"y":438,"width":135,"height":11}},{"id":"71f899be-6d98-48c6-acf9-4499ed22ea58","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":171,"box":{"x":102,"y":460,"width":783,"height":12}},{"id":"b1b87216-2c7e-41ad-b1b9-d77987044c36","block_type":"box","text":"tax basis of a holder’s shares and after such adjusted tax basis is reduced to zero, will constitute capital gains to","page_number":171,"box":{"x":68,"y":475,"width":812,"height":12}},{"id":"94a3c5cc-a77d-4e48-a343-0704534769b5","block_type":"box","text":"such holder (assuming the shares are held as a capital asset). Distributions in excess of a Fund’s minimum","page_number":171,"box":{"x":69,"y":491,"width":769,"height":11}},{"id":"d7e7baf6-6839-40cb-b893-0c6e40b4b04b","block_type":"box","text":"distribution requirements (or taxable income) but not in excess of a Fund’s earnings and profits will be taxable to","page_number":171,"box":{"x":69,"y":506,"width":805,"height":11}},{"id":"fb66341b-cf32-4bde-b73e-9d9bbffca6de","block_type":"box","text":"shareholders and will not constitute nontaxable returns of capital. In the case of a Fund with a non-calendar taxable","page_number":171,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"67ea60ea-d321-4eae-9143-1d8d0b2c2640","block_type":"box","text":"year, a Fund’s earnings and profits are allocated first to distributions made on or before December 31 of the taxable","page_number":171,"box":{"x":68,"y":536,"width":831,"height":11}},{"id":"bcabe1be-77fb-40c3-9cb1-4325c0d3a60d","block_type":"box","text":"year, and then to distributions made after December 31 of the taxable year. Any loss upon the sale or exchange of","page_number":171,"box":{"x":68,"y":551,"width":817,"height":11}},{"id":"032b0a32-3d96-46f4-9373-40b5c3e3fa78","block_type":"box","text":"Fund shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain","page_number":171,"box":{"x":70,"y":566,"width":797,"height":11}},{"id":"7e42d5ee-c530-49cf-b984-d63c8b4d0d05","block_type":"box","text":"dividends received by the shareholder.","page_number":171,"box":{"x":69,"y":582,"width":272,"height":10}},{"id":"5e714c64-fe3f-41c9-b026-518a3062da51","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":171,"box":{"x":102,"y":604,"width":792,"height":11}},{"id":"a66ebd6b-9413-4ffe-b161-d3152ce1406b","block_type":"box","text":"shares of a Fund. Distributions by a Fund, whether from ordinary income or capital gains, generally will not be eligible","page_number":171,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"5b9a146c-ec8f-450e-9091-2babca3e2f72","block_type":"box","text":"for the dividends received deduction allowed to corporations under the Code. If a Fund pays a dividend in January","page_number":171,"box":{"x":68,"y":634,"width":809,"height":11}},{"id":"ffe6b434-acd0-4638-8c10-7abb605df68d","block_type":"box","text":"that was declared in the previous October, November or December to shareholders of record on a specified date in","page_number":171,"box":{"x":68,"y":649,"width":819,"height":11}},{"id":"d2717fb2-ff45-41ae-a987-ae0f84e3853c","block_type":"box","text":"one of such months, then such dividend will be treated for tax purposes as being paid by the Fund and received by its","page_number":171,"box":{"x":69,"y":664,"width":839,"height":12}},{"id":"3feffbfd-8bb2-4c99-8390-c6820fd60582","block_type":"box","text":"shareholders on December 31 of the year in which the dividend was declared. In the case of a Fund with a non","page_number":171,"box":{"x":69,"y":680,"width":794,"height":11}},{"id":"4211e26a-c53b-46dd-9948-34d62254517e","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":171,"box":{"x":69,"y":695,"width":804,"height":11}},{"id":"b1f60d11-f168-499d-9fab-61582cce8311","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":171,"box":{"x":70,"y":710,"width":797,"height":11}},{"id":"0e4f740b-70c0-487d-80a8-a3670e13e0f9","block_type":"box","text":"dividends made after December 31 of such taxable year. A Fund may elect to defer recognizing, until the following","page_number":171,"box":{"x":69,"y":725,"width":810,"height":11}},{"id":"5714a91a-9eb0-43c6-81b2-3986fee892cc","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":171,"box":{"x":68,"y":740,"width":826,"height":11}},{"id":"71822cb6-b21c-456c-9d95-fae501d24a41","block_type":"box","text":"losses arising after October 31 and/or December 31 of the current taxable year. This may have the effect of","page_number":171,"box":{"x":70,"y":755,"width":772,"height":11}},{"id":"28e79473-7fcd-4c0a-92fb-455ecda633da","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":171,"box":{"x":70,"y":770,"width":795,"height":12}},{"id":"3df00aa7-a503-455b-bebf-f56d510f8b6d","block_type":"box","text":"taxable year.","page_number":171,"box":{"x":68,"y":786,"width":89,"height":11}},{"id":"05ea6dbd-7a51-419d-9635-0cd21fd34f4f","block_type":"box","text":"No gain or loss will be recognized by Investor C shareholders on the conversion to Investor A Shares. A","page_number":171,"box":{"x":102,"y":808,"width":733,"height":11}},{"id":"6b63537a-b52e-49fa-9415-3630032f2a5e","block_type":"box","text":"shareholder’s tax basis in the Investor A Shares acquired upon conversion will be the same as the shareholder’s tax","page_number":171,"box":{"x":69,"y":823,"width":832,"height":11}},{"id":"e9710e2e-5149-4e48-840b-cc2b4085b57c","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":171,"box":{"x":69,"y":838,"width":809,"height":12}},{"id":"30814a44-cb9a-47c6-9f06-5f484ca3b2d9","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":171,"box":{"x":69,"y":853,"width":362,"height":12}},{"id":"dd7222fb-78ab-4276-8dfa-859a704ccf30","block_type":"box","text":"If a shareholder of a Fund exercises an exchange privilege within 90 days of acquiring the shares of a Fund, but","page_number":171,"box":{"x":102,"y":876,"width":795,"height":11}},{"id":"dc9a9c52-5a7e-4223-869a-90d842c510bb","block_type":"box","text":"on or before January 31 of the following year, then the loss that the shareholder recognizes on the exchange will be","page_number":171,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"340ff4a2-78d0-4175-8269-f535f926b564","block_type":"box","text":"reduced (or the gain increased) to the extent any sales charge paid on the exchanged shares reduces any sales","page_number":171,"box":{"x":69,"y":907,"width":797,"height":11}},{"id":"bd7d3bf0-067c-44c7-b4c9-c7e5e3685e54","block_type":"box","text":"II-131","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7a3a0fbb-2f9f-43ec-857e-3f5b8e59d2fc","block_type":"box","text":"NM1026U-5982643-171/241","page_number":171,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"7d4909f9-2000-4d3c-8184-aaa268494638","block_type":"box","text":"charge the shareholder would have owed upon the purchase of the new shares in the absence of the exchange","page_number":172,"box":{"x":69,"y":45,"width":791,"height":11}},{"id":"04f89969-86a8-40b7-92ab-ca3a0f13135e","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":172,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"ae8b4ff9-7e96-459f-a1f5-aa6e763f9a85","block_type":"box","text":"A loss realized on a sale or exchange of shares of a Fund will be disallowed if other substantially identical shares","page_number":172,"box":{"x":101,"y":82,"width":807,"height":12}},{"id":"35d68499-9a25-4782-ba78-d6dfeb9f49ae","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":172,"box":{"x":69,"y":98,"width":839,"height":11}},{"id":"243331cb-0c45-4cab-903c-3ed9e51f134d","block_type":"box","text":"30 days before and ending 30 days after the date on which the shares are sold or exchanged. In such case, the","page_number":172,"box":{"x":69,"y":113,"width":799,"height":11}},{"id":"d6bc4b22-ef8f-4d54-8d71-b2e02b353994","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":172,"box":{"x":69,"y":128,"width":534,"height":11}},{"id":"429d073c-34ce-4d20-b16d-7587738e60bd","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":172,"box":{"x":101,"y":150,"width":792,"height":12}},{"id":"d7d4c76f-b811-410a-877e-5c52fedc574c","block_type":"box","text":"shares of the Fund acquired on or after January 1, 2012, and sold or redeemed after that date. This information","page_number":172,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"eb083765-7238-43e6-96b5-4b5672b15931","block_type":"box","text":"includes the adjusted cost basis of the shares, the gross proceeds from disposition, and whether the gain or loss is","page_number":172,"box":{"x":70,"y":181,"width":828,"height":11}},{"id":"70b0a10e-8be7-4961-b192-50e6a01834cc","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":172,"box":{"x":70,"y":196,"width":824,"height":11}},{"id":"769f67e1-9675-4f0b-8eef-e7d1e4204488","block_type":"box","text":"selected by the Fund, unless a shareholder, before the sale or redemption, informs the Fund that it has selected a","page_number":172,"box":{"x":69,"y":211,"width":816,"height":11}},{"id":"54cb4ab1-8d57-4274-bb34-517d6536351e","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":172,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"a175e84e-6e5b-4761-b5c0-b3eb8f4eedea","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":172,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"76d4c21d-53c1-446e-99f1-0f6ffbbf744a","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":172,"box":{"x":69,"y":256,"width":788,"height":12}},{"id":"dd69b415-11f8-4923-8338-673703aa19e5","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":172,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"440ac562-c764-4c80-8977-fdaf1ace0831","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":172,"box":{"x":69,"y":286,"width":821,"height":12}},{"id":"fe94863a-f1c2-4e1a-8d0a-4a9e1c66a797","block_type":"box","text":"redemption of such shares.","page_number":172,"box":{"x":69,"y":302,"width":195,"height":11}},{"id":"270ea33e-57b3-4b39-b51d-12eec254cd43","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":172,"box":{"x":102,"y":324,"width":799,"height":11}},{"id":"7d2a42b5-d965-4363-90f3-a53843b9cc03","block_type":"box","text":"agreements. The U.S. federal income tax treatment of a derivative contract may not be as favorable as a direct","page_number":172,"box":{"x":69,"y":339,"width":791,"height":12}},{"id":"737a9982-2e7b-43b2-9c32-1752d26b41c5","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":172,"box":{"x":70,"y":355,"width":826,"height":11}},{"id":"72ed22d4-7ab0-4f87-89af-73daa3525ab9","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":172,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"dab7ffea-7a09-49be-a322-dcf5f85a9c7d","block_type":"box","text":"income rather than capital gains. In addition, section 1256 contracts held by a Fund at the end of each taxable year","page_number":172,"box":{"x":70,"y":385,"width":825,"height":11}},{"id":"520cab77-5593-404e-bcdf-1acc5b437306","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":172,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"5ecf00a8-55b1-49cc-904d-e825e05cdb1c","block_type":"box","text":"market,” such that unrealized gains or losses are treated as though they were realized (with such gain or loss being","page_number":172,"box":{"x":69,"y":415,"width":826,"height":11}},{"id":"251a0186-ca60-4303-b385-50fb7a4555db","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":172,"box":{"x":69,"y":430,"width":808,"height":11}},{"id":"de5cc0d3-9ac7-4f42-963f-86d9f8ba58e5","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":172,"box":{"x":69,"y":445,"width":787,"height":11}},{"id":"a0f6bd33-b02c-41d2-aee7-ff97f76ffee2","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":172,"box":{"x":69,"y":460,"width":816,"height":12}},{"id":"a1de3595-1c09-4558-8e6e-3960ece0a100","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":172,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"ec0475cd-25ae-4247-86d3-4a4b28f3b4c7","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":172,"box":{"x":68,"y":491,"width":542,"height":11}},{"id":"b67ff35b-f472-49a3-b0a8-3546aef50485","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":172,"box":{"x":102,"y":513,"width":744,"height":12}},{"id":"23fffc99-bdd0-41b4-9d73-a43dfda89d83","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":172,"box":{"x":69,"y":528,"width":751,"height":12}},{"id":"f1f649df-12b8-4c6c-bd97-07ddc4e18f5d","block_type":"box","text":"agreements since all the income on a notional principal contract may be ordinary income, whereas 40% of the gain","page_number":172,"box":{"x":69,"y":543,"width":819,"height":12}},{"id":"9c3132cf-7f44-44cb-b722-9d7dd04bf5ba","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":172,"box":{"x":69,"y":559,"width":823,"height":11}},{"id":"2bdfb5de-31ff-48a5-9acd-db600f778bd3","block_type":"box","text":"term capital gain taxed at more favorable rates when distributed to shareholders. The rest is long-term capital gain,","page_number":172,"box":{"x":68,"y":574,"width":823,"height":11}},{"id":"45153e91-858b-43ba-9a6a-3382009c5afb","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":172,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"6342171a-3ef0-4eb2-9e88-c8c4de9ce496","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":172,"box":{"x":69,"y":604,"width":797,"height":11}},{"id":"35a08217-2ace-44d8-94b4-341fc3c473c6","block_type":"box","text":"finalized, these regulations could result in the Fund having to treat more of its income on swap agreements and more","page_number":172,"box":{"x":68,"y":619,"width":838,"height":11}},{"id":"348d0287-be83-4388-817c-74e4e2ff5876","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":172,"box":{"x":69,"y":634,"width":695,"height":12}},{"id":"132fecf9-40da-4390-9fa3-6e8dff97265c","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":172,"box":{"x":102,"y":657,"width":768,"height":11}},{"id":"d73da8db-a79f-44de-99d5-374c70e91333","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":172,"box":{"x":69,"y":672,"width":769,"height":11}},{"id":"2861b43b-e630-4757-9da5-a229533a59b6","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":172,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"deea53a4-a49c-42ee-a5c0-2d15635cab37","block_type":"box","text":"price of the securities over their issue price (“original issue discount”) each year that the securities are held. Since","page_number":172,"box":{"x":70,"y":702,"width":819,"height":12}},{"id":"b10178f0-2841-4b4b-8fe1-4bb2f1a27410","block_type":"box","text":"the original issue discount income earned by a Fund in a taxable year may not be represented by cash income, the","page_number":172,"box":{"x":68,"y":718,"width":818,"height":11}},{"id":"670df9c8-e6a1-4086-9ddf-d743f07ce813","block_type":"box","text":"Fund may have to dispose of securities, which it might otherwise have continued to hold, or borrow to generate cash","page_number":172,"box":{"x":70,"y":732,"width":830,"height":12}},{"id":"282ec786-6488-4f72-8a58-d3f0aaa90b56","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":172,"box":{"x":70,"y":748,"width":792,"height":11}},{"id":"093b445e-3833-4ec1-83a0-616ba4debf47","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":172,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"942ff6ab-dd64-4664-9a21-fd91a02d1268","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":172,"box":{"x":70,"y":778,"width":812,"height":11}},{"id":"f263a0b1-a83f-4e43-a570-d737a0e36eb7","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":172,"box":{"x":69,"y":793,"width":789,"height":11}},{"id":"8f1858a9-c1d5-4e59-897c-ff4285237387","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":172,"box":{"x":68,"y":808,"width":777,"height":11}},{"id":"03d0f6ee-efd9-484a-8dc7-790e2e6b3fab","block_type":"box","text":"contracts or forward contracts (or similar instruments) may give rise to ordinary income or loss to the extent such","page_number":172,"box":{"x":69,"y":823,"width":810,"height":12}},{"id":"0e69864e-3635-41b3-adde-aafd09508dca","block_type":"box","text":"income or loss results from fluctuations in the value of the foreign currency concerned. Any such net gains could","page_number":172,"box":{"x":70,"y":838,"width":801,"height":12}},{"id":"b32ffc57-ebf4-4723-8db9-1bccf15b6ae2","block_type":"box","text":"require a larger dividend toward the end of the calendar year. Any such net losses will generally reduce and","page_number":172,"box":{"x":69,"y":853,"width":762,"height":12}},{"id":"a2f965ee-4074-4ad7-82b7-954387993549","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":172,"box":{"x":70,"y":869,"width":827,"height":11}},{"id":"ecaf347c-a2cb-4027-bee2-a9a558f10ea7","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":172,"box":{"x":69,"y":884,"width":787,"height":11}},{"id":"a7032331-769a-4bff-b7c7-fe6258e896c9","block_type":"box","text":"II-132","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"45605b58-1b11-4fa1-b1a6-648e6d7ce1e1","block_type":"box","text":"NM1026U-5982643-172/241","page_number":172,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"659e43b7-e0ad-4192-a1ac-e1e9fbdb075c","block_type":"box","text":"income. Any net ordinary losses so created cannot be carried forward by the Fund to offset income or gains earned","page_number":173,"box":{"x":70,"y":45,"width":822,"height":11}},{"id":"3f640a2e-aa30-49af-8293-139a2e7601fb","block_type":"box","text":"in subsequent taxable years.","page_number":173,"box":{"x":70,"y":60,"width":203,"height":11}},{"id":"f22c0b16-9e88-4d25-94ce-a5adfee05ec4","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":173,"box":{"x":102,"y":82,"width":795,"height":12}},{"id":"5d2c7a11-4b0e-4b1c-851b-e0e0b682fbfe","block_type":"box","text":"through entities to the extent owned by U.S. persons) generally will be subject to a 30% U.S. withholding tax under","page_number":173,"box":{"x":68,"y":98,"width":816,"height":11}},{"id":"87e1966a-5e90-4703-bae4-2e3c77207b3a","block_type":"box","text":"existing provisions of the Code applicable to foreign individuals and entities unless a reduced rate of withholding or a","page_number":173,"box":{"x":69,"y":113,"width":835,"height":11}},{"id":"9f0be31f-492d-48a1-95cc-90d6d14785e3","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":173,"box":{"x":68,"y":128,"width":815,"height":11}},{"id":"c52bb673-1fb9-4c20-b200-ba171883bd9b","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":173,"box":{"x":69,"y":143,"width":816,"height":11}},{"id":"5ca0a50e-1a05-4c4e-bbd3-5ee319594ec3","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":173,"box":{"x":69,"y":158,"width":840,"height":11}},{"id":"217093d2-e18f-421c-a061-97e558170693","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":173,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"26606c58-f309-48c7-8115-b996b152acf0","block_type":"box","text":"discount and market discount) and paid to shareholders who are nonresident aliens or foreign entities, if and to the","page_number":173,"box":{"x":69,"y":188,"width":824,"height":12}},{"id":"aa483852-610d-4086-93a7-568013dab631","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":173,"box":{"x":69,"y":204,"width":832,"height":11}},{"id":"399ba73c-b46f-4aaa-bcd9-e77b75b4e6b5","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":173,"box":{"x":68,"y":219,"width":808,"height":11}},{"id":"1e9f6ee6-e025-4f0a-8caf-cd23483a9cc4","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":173,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"59ccb07a-d04b-49da-83ac-118b142280a0","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":173,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"0ecdf89e-6d7f-46d6-b09d-f74e1f047f9b","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":173,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"76619483-891e-426b-8935-f89308e20179","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":173,"box":{"x":68,"y":279,"width":784,"height":11}},{"id":"ed0b3a73-b516-4d14-a891-1bebcee767d4","block_type":"box","text":"relating to its foreign status (including, in general, furnishing an IRS Form W-8BEN, IRS Form W-8BEN-E or substitute","page_number":173,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"557a5d61-a554-405c-bb68-6dda64d8de52","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":173,"box":{"x":70,"y":309,"width":839,"height":11}},{"id":"de83a846-c79f-4e69-b788-3e0cb29ce02b","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":173,"box":{"x":70,"y":325,"width":772,"height":11}},{"id":"1b7fadda-3135-44c3-af9b-735996d142fc","block_type":"box","text":"intermediaries with respect to the application of these rules to their accounts. It is not possible to predict what","page_number":173,"box":{"x":70,"y":339,"width":791,"height":11}},{"id":"711b7123-d44f-43c6-b2df-810195769a23","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":173,"box":{"x":70,"y":355,"width":787,"height":11}},{"id":"e7e71149-220e-4d0a-babd-d6e496ab475f","block_type":"box","text":"dividends under these rules.","page_number":173,"box":{"x":69,"y":370,"width":201,"height":9}},{"id":"92084497-727d-49fe-991f-d68fce20ca44","block_type":"box","text":"Special rules may apply to a foreign shareholder receiving a Fund distribution if at least 50% of the Fund’s","page_number":173,"box":{"x":102,"y":392,"width":756,"height":12}},{"id":"19c69e2b-a7e4-4506-a94f-a7c87e90e17c","block_type":"box","text":"assets consist of interests in U.S. real proper ty interests, including cer tain REITs and U.S. real proper ty holding","page_number":173,"box":{"x":69,"y":407,"width":798,"height":12}},{"id":"9a6ae57f-9438-4d60-8856-16e9cb6c261c","block_type":"box","text":"corporations (as defined in the Internal Revenue Code and Treasury regulations). Fund distributions that are","page_number":173,"box":{"x":69,"y":423,"width":769,"height":11}},{"id":"e62934f6-3cd8-4837-af0c-7b3548631153","block_type":"box","text":"attributable to gain from the disposition of a U.S. real proper ty interest will be taxable as ordinary dividends and","page_number":173,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"139359c2-2eba-40f0-9eb3-5f88a287f0c5","block_type":"box","text":"subject to withholding at a 30% or lower treaty rate if the foreign shareholder held no more than 5% of the Fund’s","page_number":173,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"13793a5c-67bb-4977-a85c-3dfa2a9731b0","block_type":"box","text":"shares at any time during the one-year period ending on the date of the distribution. If the foreign shareholder held","page_number":173,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"d956f6f7-4898-417a-8bd2-12243e171e95","block_type":"box","text":"more than 5% of the Fund’s shares, the distribution would be treated as income effectively connected with a trade or","page_number":173,"box":{"x":69,"y":483,"width":835,"height":11}},{"id":"1769102e-3545-4e98-933f-407d695c3bd8","block_type":"box","text":"business within the U.S. and the foreign shareholder would be subject to withholding tax at a rate of 21% and would","page_number":173,"box":{"x":69,"y":498,"width":826,"height":11}},{"id":"9965df17-1569-4f1b-b23d-28a9fc982f79","block_type":"box","text":"generally be required to file a U.S. federal income tax return. Similar consequences would generally apply to a foreign","page_number":173,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"748c2301-dab2-4f60-87ef-cb11d7c7c2e9","block_type":"box","text":"shareholder’s gain on the sale of Fund shares unless the Fund is domestically controlled (meaning that more than","page_number":173,"box":{"x":69,"y":528,"width":814,"height":12}},{"id":"e8e61c5b-0b36-45b3-a903-da6c69848437","block_type":"box","text":"50% of the value of the Fund’s shares is held by U.S. shareholders) or the foreign shareholder owns no more than 5%","page_number":173,"box":{"x":69,"y":543,"width":840,"height":12}},{"id":"da81943b-7081-4636-b8dd-2f37fa069b27","block_type":"box","text":"of the Fund’s shares at any time during the five-year period ending on the date of sale. Finally, a domestically","page_number":173,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"96dfca1c-a3fd-4181-a606-aefcd6d5447a","block_type":"box","text":"controlled Fund may be required to recognize a por tion of its gain on the in-kind distribution of cer tain U.S. real","page_number":173,"box":{"x":69,"y":574,"width":790,"height":11}},{"id":"9fa99b7d-a687-462d-bd6f-7706297c8975","block_type":"box","text":"proper ty interests. Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax","page_number":173,"box":{"x":70,"y":589,"width":804,"height":11}},{"id":"1c7be9ba-b644-4eb9-9dd0-47a33dab47d5","block_type":"box","text":"advisors concerning the par ticular tax consequences to them of an investment in the Fund.","page_number":173,"box":{"x":69,"y":604,"width":648,"height":11}},{"id":"30aa0286-785a-4b5e-b7b2-266a5e94b592","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":173,"box":{"x":102,"y":627,"width":763,"height":11}},{"id":"95a5eea8-a152-4270-9849-c9056c9ea47b","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":173,"box":{"x":70,"y":642,"width":820,"height":11}},{"id":"66f1189f-6c8b-4636-b2d8-e8f45894122c","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":173,"box":{"x":69,"y":657,"width":794,"height":11}},{"id":"242e1e56-20d6-432d-9399-a462009f760a","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":173,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"8ddf46be-0efd-4c40-8640-8d437338a65b","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":173,"box":{"x":69,"y":687,"width":791,"height":11}},{"id":"22a0c6bf-0591-409e-b2f8-e45e2c45a333","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":173,"box":{"x":68,"y":702,"width":791,"height":12}},{"id":"00604541-cc54-455a-a749-aa4159a301c2","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":173,"box":{"x":70,"y":717,"width":822,"height":12}},{"id":"435de50c-ef50-4fb7-b376-aeb8e3a2cc1d","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":173,"box":{"x":70,"y":732,"width":739,"height":12}},{"id":"a3da3c80-59b3-4d3d-97be-8f4e20f3c224","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":173,"box":{"x":102,"y":755,"width":786,"height":11}},{"id":"708ca807-1019-4a4f-9ec3-81d3130fcdc1","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":173,"box":{"x":70,"y":770,"width":820,"height":12}},{"id":"c6e7516d-e1c5-42d8-a6bc-36745e1ac5b7","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":173,"box":{"x":69,"y":785,"width":837,"height":12}},{"id":"03b58056-f347-4576-a75f-c7f4bb219c69","block_type":"box","text":"is on file with the Fund or who, to the Fund’s knowledge, have furnished an incorrect number. When establishing an","page_number":173,"box":{"x":70,"y":801,"width":821,"height":11}},{"id":"225367b7-07d7-44f9-9274-f29bdb09b5ef","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":173,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"1b198c21-0b73-4139-837f-419cb445ea19","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":173,"box":{"x":69,"y":831,"width":826,"height":11}},{"id":"07e99f5c-e805-4697-a92d-cf487049287f","block_type":"box","text":"may be allowed as a refund or a credit against a shareholder’s U.S. federal income tax liability, provided that the","page_number":173,"box":{"x":69,"y":846,"width":802,"height":11}},{"id":"ffbe8957-fa22-47c1-9946-2e8cf68a9d11","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":173,"box":{"x":69,"y":861,"width":364,"height":11}},{"id":"8f1a3f43-6019-4d0b-84cc-9d9330b5fe2c","block_type":"box","text":"If a shareholder recognizes a loss with respect to a Fund’s shares of at least $2 million in any single taxable","page_number":173,"box":{"x":102,"y":883,"width":774,"height":12}},{"id":"209fffef-a70e-4569-a7ab-6f5a0282950c","block_type":"box","text":"year or $4 million in any combination of taxable years for an individual shareholder or $10 million in any single","page_number":173,"box":{"x":68,"y":898,"width":787,"height":12}},{"id":"c5bf4a7b-c319-4500-b294-b04f3e2e5461","block_type":"box","text":"II-133","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f4e4259e-8cb3-41ff-9df9-049753eda83a","block_type":"box","text":"NM1026U-5982643-173/241","page_number":173,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"74229812-dd75-4f51-92a2-f6a2c6965374","block_type":"box","text":"taxable year or $20 million in any combination of taxable years for a corporate shareholder in any single taxable year,","page_number":174,"box":{"x":68,"y":44,"width":835,"height":12}},{"id":"e4960f6e-ebee-4e4f-a5c8-1b9570d46061","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":174,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"4c2efc15-19b6-4325-b863-e5b1f549aea4","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":174,"box":{"x":69,"y":75,"width":817,"height":11}},{"id":"a8c1d734-4d2b-4f11-a985-e9d2b8c596a7","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":174,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"71736415-4983-4f0a-8762-32b0679cd5e4","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":174,"box":{"x":69,"y":105,"width":710,"height":11}},{"id":"306ac31a-168c-4f9e-b9b5-256e1f5b35f5","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":174,"box":{"x":102,"y":128,"width":758,"height":11}},{"id":"eaa58598-4657-4360-9066-40f5fa345139","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":174,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"88c793ab-9ad1-4e3c-bf1b-55fb10501e17","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":174,"box":{"x":70,"y":158,"width":783,"height":11}},{"id":"74f04b76-c85e-4764-9bf3-54bd5d73da4c","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":174,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"f358e4bd-cbdd-459a-b346-433275678657","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":174,"box":{"x":70,"y":188,"width":822,"height":12}},{"id":"16b12511-9aeb-45ba-a6c6-783e8685187a","block_type":"box","text":"be offset by otherwise allowable deductions for tax purposes; (iii) not be eligible for reduced U.S. withholding for non","page_number":174,"box":{"x":69,"y":203,"width":836,"height":12}},{"id":"a0273e26-9fe5-41f9-af90-d2f5e963c6b8","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":174,"box":{"x":70,"y":218,"width":826,"height":12}},{"id":"06d3d3a3-f603-4864-9f60-e72a17bd5510","block_type":"box","text":"organizations,” as defined by the Code, are Fund shareholders. The Fund tries to avoid investing in REITs that are","page_number":174,"box":{"x":69,"y":234,"width":808,"height":11}},{"id":"9a9486d8-2e7c-4b8e-9dbb-57df081ed2d2","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":174,"box":{"x":69,"y":249,"width":800,"height":11}},{"id":"58734ef9-8971-460d-ad9e-7a71bd64f026","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":174,"box":{"x":70,"y":264,"width":770,"height":11}},{"id":"e34a1e02-929d-4123-9ea0-641d1af239b2","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":174,"box":{"x":70,"y":279,"width":816,"height":11}},{"id":"445ad11f-f67c-4cbf-8431-2ef7cc1540d6","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":174,"box":{"x":70,"y":294,"width":796,"height":11}},{"id":"c3b2d4f2-4816-4a10-8a3e-47a982ed1526","block_type":"box","text":"investment oppor tunities.","page_number":174,"box":{"x":70,"y":309,"width":180,"height":11}},{"id":"7cbf893f-8307-4a6c-b639-a5ffd69b56a2","block_type":"box","text":"Dividends and interest received and capital gains realized by a Fund may give rise to withholding and other taxes","page_number":174,"box":{"x":102,"y":332,"width":801,"height":11}},{"id":"8f53314e-3eb0-4b7e-89b7-b567b736d183","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":174,"box":{"x":70,"y":347,"width":839,"height":11}},{"id":"f514f003-23d5-461e-b77b-19b4648cf6ea","block_type":"box","text":"eliminate such taxes. Shareholders of a Fund more than 50% by value of the assets of which at the close of a taxable","page_number":174,"box":{"x":69,"y":362,"width":840,"height":11}},{"id":"fa6402b4-468a-4277-b02b-f00d09761f8e","block_type":"box","text":"year are foreign securities may be able to claim U.S. foreign tax credits with respect to such foreign taxes paid by the","page_number":174,"box":{"x":68,"y":377,"width":837,"height":12}},{"id":"ce7e7c8c-47ef-47f8-a723-540cd8890333","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":174,"box":{"x":70,"y":392,"width":774,"height":11}},{"id":"1edefd18-a086-490b-89ab-82b7722ea47e","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":174,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"96e9b078-4630-4a0b-b00f-47bf42c66944","block_type":"box","text":"held in a Fund. In addition, a foreign tax credit may be claimed with respect to withholding tax on payments with","page_number":174,"box":{"x":69,"y":423,"width":795,"height":11}},{"id":"14482777-b596-4ec7-a519-a7f46c01f0f8","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":174,"box":{"x":69,"y":438,"width":755,"height":11}},{"id":"c82ea700-b7e5-46a3-a800-c02e16032cec","block_type":"box","text":"shareholder and the Fund must meet these holding period requirements, and if a Fund fails to do so, it will not be","page_number":174,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"a30217b4-d460-44bf-b61b-5e81cbd535dd","block_type":"box","text":"able to “pass through” to shareholders the ability to claim a credit or a deduction for the related foreign taxes paid by","page_number":174,"box":{"x":69,"y":468,"width":839,"height":11}},{"id":"eb134c26-38dd-4349-9fda-939b50f419fc","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":174,"box":{"x":68,"y":483,"width":812,"height":11}},{"id":"e59105c9-26ca-448b-99d6-cc05c8d95b79","block_type":"box","text":"subject to foreign taxes, it may not be able to pass through to its shareholders the ability to take a foreign tax credit","page_number":174,"box":{"x":69,"y":498,"width":829,"height":11}},{"id":"719720bb-83ab-42fa-9809-34d080715e1e","block_type":"box","text":"for those taxes. If a Fund satisfies the applicable requirements, such Fund will be eligible to file an election with the","page_number":174,"box":{"x":68,"y":513,"width":827,"height":12}},{"id":"f60fb13e-63f3-4db7-91d2-eb3e94ad4c53","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":174,"box":{"x":70,"y":528,"width":829,"height":12}},{"id":"7ec2322b-9fb8-44ec-8f56-39a97bcb419c","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":174,"box":{"x":68,"y":544,"width":825,"height":11}},{"id":"6ae89da4-a20b-4d36-8844-ba3106b8652b","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":174,"box":{"x":69,"y":559,"width":788,"height":11}},{"id":"20b34fa9-88c2-4ffc-a73b-737ac4daefc0","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":174,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"196d44dc-7349-4b1b-8ba2-ffba51efbced","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":174,"box":{"x":69,"y":589,"width":773,"height":11}},{"id":"48f3f707-e56d-4c10-a20a-64189ee39598","block_type":"box","text":"corporation may be subject to U.S. withholding tax on the income resulting from a Fund’s election described in this","page_number":174,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"9d3cec94-cf47-472d-b8a3-4bab58a90dd1","block_type":"box","text":"paragraph but may not be able to claim a credit or deduction against such U.S. tax for the foreign taxes treated as","page_number":174,"box":{"x":70,"y":619,"width":814,"height":11}},{"id":"20c1dd06-0a69-4922-a86f-e9e409e48e2c","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":174,"box":{"x":69,"y":634,"width":821,"height":12}},{"id":"7b31dd46-6fab-4527-b973-861bb0f7d707","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":174,"box":{"x":68,"y":649,"width":527,"height":12}},{"id":"6c0fb4d5-a483-4894-885c-0633c88dc85e","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":174,"box":{"x":102,"y":672,"width":768,"height":11}},{"id":"c4ca550a-8d08-4d2c-bf71-0037994b2f77","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":174,"box":{"x":69,"y":687,"width":780,"height":11}},{"id":"e1b04c57-386d-4f79-94b5-2228f4c5f66e","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":174,"box":{"x":69,"y":702,"width":797,"height":12}},{"id":"621ca5e0-fcd4-457a-957c-3f411158e3a7","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":174,"box":{"x":69,"y":717,"width":802,"height":12}},{"id":"97e1d06b-735f-4006-b60c-43c35995a2a1","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":174,"box":{"x":69,"y":732,"width":831,"height":12}},{"id":"e36c0cdd-26f8-48d1-bedc-11d1221b575c","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":174,"box":{"x":69,"y":748,"width":776,"height":11}},{"id":"42feae95-ec69-4f2d-834b-c74fa0722c44","block_type":"box","text":"positions in its por tfolio (i.e., treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":174,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"3e16f00c-acb5-479b-af50-91a9d90890dc","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":174,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"5e87217b-85ad-46c6-a2b0-2c09cd12e388","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":174,"box":{"x":70,"y":793,"width":830,"height":11}},{"id":"6ac343b2-77e1-43a4-991b-049bb68817ab","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":174,"box":{"x":69,"y":808,"width":804,"height":11}},{"id":"07cebeb9-2c0b-4302-ba8b-a2a4f9be9cc1","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":174,"box":{"x":69,"y":823,"width":415,"height":12}},{"id":"ab265e3f-f08d-4854-8059-1ccf1a53fdd6","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":174,"box":{"x":102,"y":846,"width":781,"height":11}},{"id":"33cec91d-6681-4f41-9e0d-0f69d33feb1d","block_type":"box","text":"any of the Fund’s transactions in foreign currencies and hedging activities, are likely to produce a difference between","page_number":174,"box":{"x":69,"y":861,"width":835,"height":11}},{"id":"53ced87a-56c1-42f9-83af-d168c15b67c4","block_type":"box","text":"its book income and the sum of its taxable income and net tax-exempt income (if any). If such a difference arises,","page_number":174,"box":{"x":70,"y":876,"width":811,"height":11}},{"id":"c56b6782-6b03-47e5-83fc-8972dce4b942","block_type":"box","text":"and the Fund’s book income is less than the sum of its taxable income and net tax-exempt income, the Fund could","page_number":174,"box":{"x":69,"y":891,"width":818,"height":11}},{"id":"f193e41c-7c35-4f50-983c-482f823b03e5","block_type":"box","text":"be required to make distributions exceeding book income to qualify as a RIC that is accorded special tax treatment","page_number":174,"box":{"x":69,"y":906,"width":820,"height":12}},{"id":"549ba1cf-4e9b-4256-9e5f-5f50d3fdfa9d","block_type":"box","text":"II-134","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8839032d-9aba-4cdf-8145-ee6a2c264623","block_type":"box","text":"NM1026U-5982643-174/241","page_number":174,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"970a6494-0233-4c29-9a26-f1650c2c767c","block_type":"box","text":"and to avoid an entity-level tax. In the alternative, if the Fund makes any distribution based on book income and such","page_number":175,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"20513679-0004-4e6c-9a99-14c7d280f265","block_type":"box","text":"book income exceeds the sum of its taxable income (including realized capital gains) and net tax-exempt income, the","page_number":175,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"58cd8632-b3ae-4b23-b9bf-ecb536781e80","block_type":"box","text":"distribution (if any) of such excess generally will be treated as (i) a dividend to the extent of the Fund’s remaining","page_number":175,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"08e10b50-6b16-491a-a908-afa74349766c","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":175,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"06e2e51d-1215-474c-bde8-ce62dfe7119d","block_type":"box","text":"capital to the extent of the recipient’s basis in its shares, and (iii) thereafter as gain from the sale or exchange of a","page_number":175,"box":{"x":69,"y":105,"width":822,"height":11}},{"id":"d47be0be-d951-4159-ac33-1b3f93a15775","block_type":"box","text":"capital asset.","page_number":175,"box":{"x":69,"y":120,"width":95,"height":11}},{"id":"7de67682-a02e-4dfd-8ba9-f8d397456963","block_type":"box","text":"If a Fund invests in underlying funds, the Fund’s realized losses on sales of shares of underlying funds may be","page_number":175,"box":{"x":102,"y":143,"width":787,"height":11}},{"id":"d730770e-7c8c-4696-9752-8e169df54491","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":175,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"55d71938-0618-4f0b-bf4d-8a3789207c29","block_type":"box","text":"be recognized as ordinary income by the Fund and would not be offset by the Fund’s capital loss carryforwards, if","page_number":175,"box":{"x":69,"y":173,"width":812,"height":11}},{"id":"f3d106e5-1748-4cad-83cb-3493598f8a09","block_type":"box","text":"any. Capital loss carryforwards of underlying funds, if any, would not offset net capital gains of the Fund. Each of","page_number":175,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"efa216e1-b47c-4c34-a821-25e9f956a3db","block_type":"box","text":"these effects is caused by the Fund’s expected investment in the underlying funds and may result in distributions to","page_number":175,"box":{"x":68,"y":203,"width":829,"height":12}},{"id":"699ca3ab-b12c-4dcd-83c2-f1ef7b61ff09","block_type":"box","text":"Fund shareholders being of higher magnitudes and less likely to qualify for lower capital gain tax rates than if the","page_number":175,"box":{"x":70,"y":218,"width":803,"height":12}},{"id":"cf581eb4-16ee-45a7-8f0a-9cfd95967359","block_type":"box","text":"Fund were to invest otherwise.","page_number":175,"box":{"x":70,"y":234,"width":216,"height":9}},{"id":"de048d6f-9fc0-487b-8053-c4484792f0d2","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":175,"box":{"x":101,"y":256,"width":721,"height":12}},{"id":"1a08d62e-9665-4aa6-9eb4-5ef8dea71070","block_type":"box","text":"“Subsidiary”). It is expected that the Subsidiary will be a “controlled foreign corporation” and that all of its net","page_number":175,"box":{"x":70,"y":271,"width":787,"height":12}},{"id":"41654854-568c-4ee6-9a1c-b0b143660f8b","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":175,"box":{"x":70,"y":286,"width":831,"height":11}},{"id":"1f683a54-bcfa-421b-9b54-fbc6f1c0034c","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":175,"box":{"x":68,"y":302,"width":823,"height":11}},{"id":"850e766b-ba89-4f4f-89ce-0c3d68a3c58a","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":175,"box":{"x":69,"y":317,"width":825,"height":11}},{"id":"0b708d11-74da-4b9b-8017-a273328a2f1b","block_type":"box","text":"to the Fund. (Previously taxed income will not, however, be taxable again when distributed.) If a net loss is realized by","page_number":175,"box":{"x":68,"y":332,"width":838,"height":11}},{"id":"c78ad93c-962b-407d-a627-a6f0a71a2321","block_type":"box","text":"the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s other income. It is not","page_number":175,"box":{"x":68,"y":347,"width":830,"height":11}},{"id":"06a367e5-bea1-4146-92aa-7f96b9ba6059","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":175,"box":{"x":69,"y":362,"width":515,"height":11}},{"id":"3632b5e4-5e43-47c1-b41f-0ffc6c1a4f69","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":175,"box":{"x":102,"y":385,"width":798,"height":11}},{"id":"98dc8744-95a6-4bec-8106-9c5babe1fc4a","block_type":"box","text":"the Fund will generally be treated as owning shares in a passive foreign investment company (“PFIC”) for U.S. federal","page_number":175,"box":{"x":68,"y":400,"width":835,"height":11}},{"id":"49ac3826-5339-48ae-88a0-d37dd584163f","block_type":"box","text":"income tax purposes. A Fund may be subject to U.S. federal income tax, and interest charges (at the rate applicable","page_number":175,"box":{"x":70,"y":415,"width":827,"height":11}},{"id":"9047458a-554f-4806-92aa-5d07a6d71334","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":175,"box":{"x":68,"y":430,"width":830,"height":11}},{"id":"800cd4ef-fff8-4a04-aad4-478057a156f2","block_type":"box","text":"a company and on gain from the disposition of the shares of such a company (collectively referred to as “excess","page_number":175,"box":{"x":69,"y":445,"width":802,"height":12}},{"id":"5fa1fc93-5818-43d9-8147-2375e14c44c1","block_type":"box","text":"distributions”), even if such excess distributions are paid by the Fund as a dividend to its shareholders. However, a","page_number":175,"box":{"x":69,"y":460,"width":821,"height":12}},{"id":"acb953eb-18be-412c-a99c-e327d43b7802","block_type":"box","text":"Fund may elect to “mark-to-market” at the end of each taxable year shares that it holds in PFICs. The election is","page_number":175,"box":{"x":70,"y":475,"width":797,"height":12}},{"id":"e6205304-ee30-455d-aabd-48c043706ee8","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":175,"box":{"x":69,"y":491,"width":801,"height":11}},{"id":"16c67f0e-c87f-47ab-9978-3a1fdfab0474","block_type":"box","text":"revoked with consent from the IRS. Under this election, a Fund would recognize as ordinary income any increase in","page_number":175,"box":{"x":69,"y":506,"width":818,"height":11}},{"id":"82416525-cea1-4717-9768-abe13fca8f9c","block_type":"box","text":"the value of its shares as of the close of the taxable year over their adjusted tax basis and as ordinary loss any","page_number":175,"box":{"x":68,"y":521,"width":797,"height":11}},{"id":"67238947-fdc8-490b-8d38-c121d33483cd","block_type":"box","text":"decrease in such value, but only to the extent of previously recognized “mark-to-market” gains. By making the mark","page_number":175,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"c54da6b3-6aa2-4c71-9940-247465224b7e","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":175,"box":{"x":68,"y":551,"width":804,"height":11}},{"id":"2a7a027d-72b9-43ec-885e-ab6e7d4efc12","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":175,"box":{"x":69,"y":566,"width":831,"height":11}},{"id":"71b736c1-f458-4889-b296-50a1ba02cf92","block_type":"box","text":"PFICs.","page_number":175,"box":{"x":69,"y":581,"width":42,"height":9}},{"id":"b7c13751-fd37-4be3-8498-85a85e036ea6","block_type":"box","text":"If a Fund were to invest in a PFIC and elect to treat the PFIC as a “qualified electing fund” under the Code, in lieu","page_number":175,"box":{"x":102,"y":604,"width":804,"height":11}},{"id":"407e8912-5e0c-466e-b7aa-f932a195ea71","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":175,"box":{"x":69,"y":619,"width":816,"height":11}},{"id":"3a3de745-5c06-47ab-a7cf-90e7ebb8d164","block_type":"box","text":"earnings and net capital gains of the qualified electing fund, even if not distributed to the Fund, and such amounts","page_number":175,"box":{"x":69,"y":634,"width":816,"height":12}},{"id":"9bedead8-4736-4621-8150-fdcd42d4fc3a","block_type":"box","text":"would be subject to the 90% and excise tax distribution requirements described above. In order to make this election,","page_number":175,"box":{"x":68,"y":649,"width":840,"height":11}},{"id":"20fd542f-91b0-4cf7-924e-00bd8745ec07","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":175,"box":{"x":68,"y":664,"width":804,"height":12}},{"id":"48f22fbd-fdff-4aff-a4ff-edcad91266de","block_type":"box","text":"difficult or impossible to obtain.","page_number":175,"box":{"x":69,"y":680,"width":225,"height":11}},{"id":"205183a1-dd6d-432b-8448-ef1b75b4f128","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":175,"box":{"x":102,"y":702,"width":796,"height":11}},{"id":"d0b607cd-8812-41ca-907c-d15d4d5a7a2b","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":175,"box":{"x":69,"y":717,"width":806,"height":12}},{"id":"63f88876-daeb-4704-ae52-3e18be7ddaa4","block_type":"box","text":"(defined as the sum of the excess of post-October foreign currency and PFIC losses over post-October foreign","page_number":175,"box":{"x":69,"y":732,"width":778,"height":12}},{"id":"293f3af6-b570-4e37-ab40-74f2d305820a","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":175,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"7334e602-c5f2-4ef0-a87e-18fd17e72f3d","block_type":"box","text":"the next taxable year in computing its investment company taxable income and net capital gain, which will defer the","page_number":175,"box":{"x":68,"y":763,"width":824,"height":11}},{"id":"04998617-c963-4357-bf61-3c441c4f333e","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":175,"box":{"x":69,"y":778,"width":830,"height":11}},{"id":"83d45f78-3c33-449d-9fa5-d17848d84afb","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":175,"box":{"x":69,"y":793,"width":511,"height":11}},{"id":"26200ca5-7970-4682-8ed3-f6daf5ee5800","block_type":"box","text":"Municipal Funds","page_number":175,"box":{"x":102,"y":816,"width":115,"height":11}},{"id":"27e6fc84-aaff-4055-9b55-3c0c5d212768","block_type":"box","text":"Each Municipal Fund intends to qualify to pay “exempt-interest dividends” as defined in Section 852(b)(5) of the","page_number":175,"box":{"x":102,"y":838,"width":798,"height":11}},{"id":"7d9ee9e5-96ae-4ac5-979c-384b35905038","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":175,"box":{"x":69,"y":853,"width":815,"height":12}},{"id":"3fd13eef-4ffe-46b2-85fe-0c2250673333","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":175,"box":{"x":70,"y":869,"width":803,"height":11}},{"id":"cd510647-55e9-4d70-97ad-ec3d5297f14f","block_type":"box","text":"Section 103(a) of the Code (relating generally to obligations of a state or local governmental unit), the Fund shall be","page_number":175,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"92759717-febf-4ad3-ba8b-e82a49385bba","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":175,"box":{"x":69,"y":899,"width":752,"height":11}},{"id":"735cb936-4260-460e-aae7-55ede01368fe","block_type":"box","text":"II-135","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cfbbca34-88df-44a9-b98f-26f69bdaca60","block_type":"box","text":"NM1026U-5982643-175/241","page_number":175,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"41a4099a-ee99-4b30-92c7-4b188ffa84d1","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":176,"box":{"x":70,"y":45,"width":817,"height":11}},{"id":"8081296f-a7ad-45b2-a93e-1af5fb0683f8","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":176,"box":{"x":70,"y":60,"width":780,"height":11}},{"id":"9df66bf8-ad39-4a7b-8fca-9f2f5944f219","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":176,"box":{"x":70,"y":75,"width":815,"height":11}},{"id":"122bc06a-a7ff-4ca7-a6f4-a83db31b270f","block_type":"box","text":"below) among the Fund’s shareholders according to a method (that it believes is consistent with the Commission rule","page_number":176,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"187a37e2-eacf-423b-8440-090228a32381","block_type":"box","text":"permitting the issuance and sale of multiple classes of shares) that is based upon the gross income that is allocable","page_number":176,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"70f0c104-54d5-4e42-b9e7-060c652df458","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":176,"box":{"x":68,"y":120,"width":730,"height":12}},{"id":"574d6b30-5607-4fc9-9c45-40ed768e09ef","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":176,"box":{"x":102,"y":143,"width":763,"height":11}},{"id":"d206c9dd-d7e9-4945-a4dc-8bb74aced298","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":176,"box":{"x":70,"y":158,"width":809,"height":11}},{"id":"9bd2792e-c475-46f9-a313-93d22d9b080d","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":176,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"72e7249a-ef44-4fa0-9349-497275a3ad26","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":176,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"d336342a-ab19-4dc9-9e5d-5b68243a7be2","block_type":"box","text":"the Fund, will not be deductible by the investor for U.S. federal income tax purposes to the extent attributable to","page_number":176,"box":{"x":68,"y":203,"width":800,"height":12}},{"id":"9782e15c-993c-4064-ae6e-908f10193430","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":176,"box":{"x":69,"y":219,"width":810,"height":10}},{"id":"df37879e-5bfe-40f6-9712-a03d57ac377b","block_type":"box","text":"interest dividends retain the exclusion under Code Section 103(a) if a shareholder would be treated as a “substantial","page_number":176,"box":{"x":70,"y":234,"width":836,"height":11}},{"id":"068d17cf-d5e9-4775-8f93-d389cc80dd12","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":176,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"e17def3d-2473-47ce-ad77-938b9f0dfd64","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":176,"box":{"x":69,"y":264,"width":217,"height":11}},{"id":"8ef8427d-2fab-4e25-b051-deb2547fd6e3","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":176,"box":{"x":102,"y":287,"width":788,"height":11}},{"id":"995f4e45-0b50-4254-a0d7-ddc3ad3e7026","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":176,"box":{"x":70,"y":302,"width":790,"height":11}},{"id":"cf1652a8-f517-4985-bf63-1e31bb43246b","block_type":"box","text":"constitute exempt-interest dividends.","page_number":176,"box":{"x":69,"y":317,"width":261,"height":11}},{"id":"9a183311-f2d8-4fda-9a97-c1e44a3c3005","block_type":"box","text":"Distributions in excess of a Fund’s earnings and profits will first reduce the adjusted tax basis of a holder’s","page_number":176,"box":{"x":102,"y":339,"width":765,"height":12}},{"id":"256a8ec0-51c5-48af-bc92-081bbbe9d273","block_type":"box","text":"shares and, after such adjusted tax basis is reduced to zero, will constitute capital gains to such holder (assuming","page_number":176,"box":{"x":69,"y":355,"width":819,"height":11}},{"id":"9e74a880-487c-4667-8cfa-737c71635ea7","block_type":"box","text":"the shares are held as a capital asset). Any loss upon the sale or exchange of Fund shares held for six months or","page_number":176,"box":{"x":68,"y":370,"width":813,"height":11}},{"id":"45967963-75ab-4381-a31d-a92609d44889","block_type":"box","text":"less will be disallowed to the extent of any exempt-interest dividends received by the shareholder. In addition, any","page_number":176,"box":{"x":70,"y":385,"width":809,"height":11}},{"id":"a75e99df-bb20-4b9c-a0b7-4dbc8b34afee","block_type":"box","text":"such loss that is not disallowed under the rule stated above will be treated as long-term capital loss to the extent of","page_number":176,"box":{"x":69,"y":400,"width":829,"height":11}},{"id":"fd9a31ca-af89-4452-bc7b-40e96d689a0b","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":176,"box":{"x":69,"y":415,"width":388,"height":11}},{"id":"3538f986-08bf-40db-b4c2-9e956a3deb06","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":176,"box":{"x":101,"y":438,"width":787,"height":11}},{"id":"64ceff1a-f612-4e57-8de2-241ab09fe88f","block_type":"box","text":"discount will be treated as ordinary income rather than capital gain. This rule may increase the amount of ordinary","page_number":176,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"2ebc16c3-1dd1-4247-ab46-4bfe3807db79","block_type":"box","text":"income dividends received by shareholders.","page_number":176,"box":{"x":70,"y":468,"width":309,"height":11}},{"id":"82ce0ea2-0704-44b7-90ae-524b2431ceff","block_type":"box","text":"Any market discount recognized on a bond is taxable as ordinary income. A market discount bond is a bond","page_number":176,"box":{"x":101,"y":491,"width":766,"height":11}},{"id":"f2ecb008-a850-4ddb-bed3-c1b352ffd5f9","block_type":"box","text":"acquired in the secondary market at a price below redemption value or adjusted issue price if issued with original","page_number":176,"box":{"x":69,"y":506,"width":808,"height":11}},{"id":"e3e69b6c-d057-4e58-9a72-8225e80dff48","block_type":"box","text":"issue discount. Absent an election by the Fund to include the market discount in income as it accrues, gain on the","page_number":176,"box":{"x":70,"y":521,"width":815,"height":11}},{"id":"f26e30e0-cc0e-459c-ac71-58c25cd44417","block_type":"box","text":"Fund’s disposition of such an obligation will be treated as ordinary income rather than capital gain to the extent of","page_number":176,"box":{"x":70,"y":536,"width":815,"height":11}},{"id":"f6a4ffea-4d3a-4323-9484-b0730838c8c0","block_type":"box","text":"the accrued market discount.","page_number":176,"box":{"x":68,"y":551,"width":208,"height":9}},{"id":"9761a667-f6cb-4f50-8970-8f3fe09c53b1","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":176,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"e20e1c32-052e-4aa4-a1a7-f69f20f517f7","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":176,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"4729ecd4-7d36-4095-bfc1-56cdb5338c9c","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":176,"box":{"x":69,"y":604,"width":816,"height":11}},{"id":"2929c065-506e-4ff3-8141-16338429ee47","block_type":"box","text":"units and that benefit non-governmental entities (e.g., bonds used for industrial development or housing purposes).","page_number":176,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"4fb153fe-9453-4ab3-b953-befabea403d6","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":176,"box":{"x":70,"y":634,"width":827,"height":11}},{"id":"a384baca-70aa-4981-afe1-7be6b1f46ae6","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":176,"box":{"x":69,"y":649,"width":786,"height":12}},{"id":"5c675710-fb3a-4275-96bd-90e633147484","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":176,"box":{"x":70,"y":664,"width":782,"height":12}},{"id":"87059f38-7576-461b-9c8d-b3912c264ca9","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":176,"box":{"x":69,"y":680,"width":740,"height":11}},{"id":"116102c1-ab8d-4edd-962a-9896d9bfbdcb","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":176,"box":{"x":102,"y":702,"width":802,"height":12}},{"id":"9d35981f-1a27-401f-bd0f-fe0ac509efad","block_type":"box","text":"the taxation of interest rate swaps are not entirely clear and may require a Fund to treat payments received under","page_number":176,"box":{"x":68,"y":717,"width":812,"height":12}},{"id":"ee8a3a7d-1b6d-423d-95ee-0e72d7b68c1b","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":176,"box":{"x":69,"y":733,"width":794,"height":11}},{"id":"e9abc17b-8e64-4fa2-a367-68efe20c18be","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":176,"box":{"x":70,"y":748,"width":776,"height":11}},{"id":"e35a00c2-079d-4920-b25e-1f43652d4db3","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":176,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"2f3d1337-690c-48aa-afbf-2d5770b9a0dc","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":176,"box":{"x":69,"y":778,"width":436,"height":11}},{"id":"2a27b3f1-3aca-4335-81f6-4c224bb73e74","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":176,"box":{"x":102,"y":801,"width":771,"height":11}},{"id":"525c9d59-8807-4f41-bb94-886d2342fca0","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":176,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"e47fbab6-9b19-44c4-945f-1c4d96109b8d","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":176,"box":{"x":69,"y":831,"width":836,"height":11}},{"id":"60c31da9-d89d-43a6-be43-960b8f134549","block_type":"box","text":"within each applicable state.","page_number":176,"box":{"x":68,"y":846,"width":203,"height":11}},{"id":"55b95e0c-4dc7-4927-bfbf-7ca2ed9ace6d","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":176,"box":{"x":102,"y":869,"width":774,"height":11}},{"id":"07faa359-268f-47fa-aee3-d421040d5d8b","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":176,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"aaa0c443-ace3-4fa6-89c2-21c47296261a","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":176,"box":{"x":70,"y":899,"width":816,"height":11}},{"id":"120e9952-0de2-410f-8569-d837070848d9","block_type":"box","text":"II-136","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"30ed5d9f-ebdb-47c2-ac47-841631dd35de","block_type":"box","text":"NM1026U-5982643-176/241","page_number":176,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"368f2894-6716-4c13-9fa2-152b1ee3b149","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":177,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"e489c3ea-fd1a-43d3-a28d-9ef7b5ee12d4","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":177,"box":{"x":68,"y":60,"width":822,"height":11}},{"id":"78b60ba8-6314-44c1-aea4-3425de05df1a","block_type":"box","text":"its discretion, the appropriate course of action for the Feeder Fund. One possible course of action would be to","page_number":177,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"32ce921d-7d66-4a34-9bc5-c598b92ff57f","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":177,"box":{"x":68,"y":90,"width":822,"height":11}},{"id":"0874589f-fd94-4935-80cf-43b5e25987cd","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":177,"box":{"x":68,"y":105,"width":710,"height":11}},{"id":"e75301e3-3c79-481b-97bd-1d32fc8482d3","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":177,"box":{"x":102,"y":128,"width":796,"height":11}},{"id":"3326e35c-e9a5-449b-8056-758834819f25","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":177,"box":{"x":68,"y":143,"width":828,"height":11}},{"id":"7b4b2132-077d-490c-a1f6-7ed450cacc94","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":177,"box":{"x":68,"y":158,"width":841,"height":11}},{"id":"47f303ce-bfaa-4c11-8d96-0e5090c7fdf7","block_type":"box","text":"exempt from state income tax.","page_number":177,"box":{"x":69,"y":173,"width":216,"height":11}},{"id":"a9215784-c450-43ce-a5fb-5da264a17564","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":177,"box":{"x":102,"y":196,"width":771,"height":11}},{"id":"2423b8e1-f2c4-4755-8f4a-444b07a827ea","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":177,"box":{"x":68,"y":211,"width":823,"height":11}},{"id":"561662f4-c412-4278-9043-72bf0cfc836f","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":177,"box":{"x":68,"y":226,"width":309,"height":9}},{"id":"5085240a-5ad8-48a3-b447-f6d494b6898a","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":177,"box":{"x":101,"y":249,"width":749,"height":11}},{"id":"625ee58d-681b-4f5c-963c-388b525f7d9f","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":177,"box":{"x":69,"y":264,"width":803,"height":11}},{"id":"8930bf81-034d-40e2-a9f5-2033ca1ade55","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":177,"box":{"x":69,"y":279,"width":801,"height":11}},{"id":"96608114-0d38-4e6d-be3c-7e2dbad9d529","block_type":"box","text":"decisions may have a retroactive effect.","page_number":177,"box":{"x":69,"y":294,"width":283,"height":11}},{"id":"69ffc583-53d3-4d9c-8ac1-5ca67f82f513","block_type":"box","text":"PERFORMANCE DATA","page_number":177,"box":{"x":403,"y":324,"width":173,"height":9}},{"id":"52c89905-8c2a-4390-9c03-7c57f9588fda","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":177,"box":{"x":102,"y":346,"width":738,"height":12}},{"id":"1372f664-aae4-45ea-a90c-df24cf8da6ee","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":177,"box":{"x":69,"y":361,"width":779,"height":12}},{"id":"69fcd839-0caa-44b9-bff7-7d9cd6cbb631","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":177,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"79fff88f-d2ff-4221-be40-fd5af883d35e","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":177,"box":{"x":70,"y":392,"width":792,"height":11}},{"id":"a7493f16-9910-4116-81a7-629d1459297a","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":177,"box":{"x":69,"y":407,"width":473,"height":11}},{"id":"51b0c7be-ac07-4f9a-a4ee-988589d7b432","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":177,"box":{"x":102,"y":429,"width":761,"height":12}},{"id":"8ed599ad-a6f0-4ea4-bcbf-ec2dace942fa","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":177,"box":{"x":69,"y":445,"width":836,"height":11}},{"id":"25463546-0d39-4afc-956b-171eee137fcc","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":177,"box":{"x":68,"y":460,"width":798,"height":11}},{"id":"ee26f603-2ea3-47a7-bef5-04caec1e87ab","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":177,"box":{"x":69,"y":475,"width":765,"height":11}},{"id":"3b18cf73-8ee5-461e-968c-4cfded8c05a0","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":177,"box":{"x":69,"y":490,"width":808,"height":11}},{"id":"86bc861b-8dca-47a2-9540-a0457582504e","block_type":"box","text":"expenses, including the maximum sales charge, in the case of front-end load shares, and the CDSC that would be","page_number":177,"box":{"x":69,"y":505,"width":813,"height":11}},{"id":"85904d45-82a9-4f48-8e08-e98759341d45","block_type":"box","text":"applicable to a complete redemption of the investment at the end of the specified period in the case of CDSC shares,","page_number":177,"box":{"x":69,"y":520,"width":839,"height":11}},{"id":"4a1be2a0-17ce-467c-a0d0-c9054cd44d32","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":177,"box":{"x":69,"y":536,"width":546,"height":10}},{"id":"ac2b3130-3237-40ae-8de3-7d562cecc66f","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":177,"box":{"x":102,"y":558,"width":781,"height":11}},{"id":"c191cf2b-2174-4de5-9141-072837ea1e91","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":177,"box":{"x":68,"y":573,"width":819,"height":11}},{"id":"c5c27c7a-62a2-4e9f-bfae-57c181fcdad7","block_type":"box","text":"value of such investment at the end of each period assuming payment of taxes on dividends received during such","page_number":177,"box":{"x":68,"y":588,"width":810,"height":12}},{"id":"fcd6d549-1753-465e-b1f4-716028ddaf08","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":177,"box":{"x":70,"y":603,"width":823,"height":12}},{"id":"88e6d9f2-b86a-4d48-82f5-57966cd7c10c","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":177,"box":{"x":69,"y":619,"width":780,"height":11}},{"id":"0e83e6df-72fd-401c-9e0b-e3e06fc455e3","block_type":"box","text":"including the maximum sales charge, in the case of front-end load shares and the CDSC that would be applicable to","page_number":177,"box":{"x":70,"y":634,"width":825,"height":11}},{"id":"3586cb1f-9434-4e1b-9cbf-52791f1539b7","block_type":"box","text":"a complete redemption of the investment at the end of the specified period in the case of CDSC shares. The taxes","page_number":177,"box":{"x":69,"y":649,"width":817,"height":11}},{"id":"114dcdab-ae95-4673-9fd6-c3f36db58119","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":177,"box":{"x":69,"y":664,"width":820,"height":11}},{"id":"4bb3350b-5a56-488a-aeb2-b766da2bb5e9","block_type":"box","text":"income tax rates in effect on the reinvestment date for that dividend. The rates used correspond to the tax character","page_number":177,"box":{"x":70,"y":679,"width":833,"height":11}},{"id":"b3f0641c-5729-4f13-9e61-e9519a94e013","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":177,"box":{"x":69,"y":694,"width":797,"height":11}},{"id":"80b448c9-3f6e-46da-8ce3-7c91f38a8696","block_type":"box","text":"taxable amount and tax character of each dividend are specified by each Fund on the dividend declaration date, but","page_number":177,"box":{"x":68,"y":709,"width":824,"height":11}},{"id":"0ab06f8c-649c-4a70-9f9f-e65ba84fa619","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":177,"box":{"x":69,"y":724,"width":837,"height":11}},{"id":"43835384-fd5c-4a7c-a43e-0d231ca3c4f4","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":177,"box":{"x":69,"y":739,"width":814,"height":12}},{"id":"cce635dd-a46d-453e-82c6-f4eae868ef89","block_type":"box","text":"credits, are taken into account according to U.S. federal tax law. The ending value is determined assuming complete","page_number":177,"box":{"x":69,"y":755,"width":830,"height":11}},{"id":"4cb2c024-6d47-419f-b709-20b75bbc5842","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":177,"box":{"x":69,"y":770,"width":774,"height":11}},{"id":"c44f34b3-ec8e-4d59-8611-35556f2ca0a2","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":177,"box":{"x":102,"y":792,"width":752,"height":12}},{"id":"667058b3-118e-4934-9383-4c5a9f339658","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":177,"box":{"x":70,"y":807,"width":835,"height":12}},{"id":"7ed19b4b-860c-4ce4-962f-7cdef3a47a1f","block_type":"box","text":"invested to the ending value of such investment at the end of each period assuming payment of taxes on dividends","page_number":177,"box":{"x":70,"y":823,"width":820,"height":11}},{"id":"ac857301-a979-4b72-9680-19d78b91ae25","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":177,"box":{"x":69,"y":838,"width":756,"height":11}},{"id":"80482ad6-07e2-463b-86f6-644396de06dd","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":177,"box":{"x":69,"y":853,"width":772,"height":11}},{"id":"699e18b8-caaa-4102-a078-72082fb5eb05","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":177,"box":{"x":69,"y":868,"width":827,"height":11}},{"id":"fc76229e-880c-47c9-9449-9e35434ecb33","block_type":"box","text":"charge in the case of front-end load shares and the CDSC that would be applicable to a complete redemption of the","page_number":177,"box":{"x":69,"y":883,"width":825,"height":11}},{"id":"205d08b2-64db-40ec-874b-874e25df8ca7","block_type":"box","text":"investment at the end of the specified period in the case of CDSC shares and assuming, for all classes of shares,","page_number":177,"box":{"x":70,"y":898,"width":812,"height":11}},{"id":"ba25c93f-046c-4051-ad59-4345d9967ef1","block_type":"box","text":"II-137","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ce080f85-b53c-4456-a57d-ef155bbdd55d","block_type":"box","text":"NM1026U-5982643-177/241","page_number":177,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"2c37aaba-a1de-4256-b89b-4e3fafa10ab8","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":178,"box":{"x":69,"y":45,"width":795,"height":11}},{"id":"6faa3821-6895-443e-9536-930880abff3a","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":178,"box":{"x":69,"y":60,"width":768,"height":11}},{"id":"7f4f6030-ec62-4291-96b0-a329b6e840f8","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":178,"box":{"x":69,"y":75,"width":810,"height":11}},{"id":"2b25cf99-68bb-4273-85ca-d86529c77d96","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":178,"box":{"x":69,"y":90,"width":802,"height":11}},{"id":"8d54a406-591b-4170-a687-b61d4c5fb4e9","block_type":"box","text":"individual income tax rates in effect on the reinvestment and/or the redemption date. The rates used correspond to","page_number":178,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"88259b2b-fbc4-45ba-87e5-2d6deb572604","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":178,"box":{"x":68,"y":120,"width":823,"height":12}},{"id":"800ca95e-7490-4dbb-a6de-9a65dfe45285","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":178,"box":{"x":69,"y":135,"width":743,"height":11}},{"id":"7b7255ab-23cd-4609-87ff-7ca48ec554f6","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":178,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"09cbe7c4-7fc7-430e-9774-e7caf5d9656d","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":178,"box":{"x":68,"y":166,"width":422,"height":11}},{"id":"2ad3e2eb-cbf9-467b-a2bf-d8b357fdeb5b","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":178,"box":{"x":101,"y":188,"width":720,"height":12}},{"id":"5a1856ef-a9b7-46fa-a79d-62f4498eb919","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":178,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"9e7f6746-35f8-445e-988d-b3908e4f1e7d","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":178,"box":{"x":69,"y":218,"width":781,"height":11}},{"id":"7cc0399b-4572-4929-bc1f-d5a26179f5d3","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":178,"box":{"x":69,"y":234,"width":837,"height":11}},{"id":"db8d65a0-427e-4572-a2f7-e07b42e914be","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":178,"box":{"x":69,"y":249,"width":817,"height":11}},{"id":"3bf9afba-15ef-482b-a4f1-05719ec9c2b9","block_type":"box","text":"will not be included with respect to annual or annualized rates of return calculations. Aside from the impact on the","page_number":178,"box":{"x":68,"y":264,"width":815,"height":11}},{"id":"1eb25cdb-1162-4cc6-9642-800e75344b5d","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":178,"box":{"x":70,"y":279,"width":801,"height":11}},{"id":"cf92ec69-c8f9-4292-8add-10658a948f02","block_type":"box","text":"annualized total return data generally will be lower than average annual total return data since the average rates of","page_number":178,"box":{"x":69,"y":294,"width":819,"height":11}},{"id":"e2839cae-e812-4d1f-acde-e0929249477c","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":178,"box":{"x":69,"y":309,"width":811,"height":11}},{"id":"7d7edeb2-77f3-47a7-8f9c-df8e2ddb8ad5","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":178,"box":{"x":69,"y":324,"width":686,"height":12}},{"id":"86ed2634-60ce-470e-9898-32c3dc4dfb13","block_type":"box","text":"Yield quotations will be computed based on a 30-day period by dividing (a) the net income based on the yield of","page_number":178,"box":{"x":101,"y":347,"width":796,"height":11}},{"id":"8cd8e656-daf9-477b-b833-b935b869ea10","block_type":"box","text":"each security earned during the period by (b) the average daily number of shares outstanding during the period that","page_number":178,"box":{"x":69,"y":362,"width":821,"height":11}},{"id":"20e989b6-5972-4abc-8e4f-eb1a06b762bc","block_type":"box","text":"were entitled to receive dividends multiplied by the maximum offering price per share on the last day of the period.","page_number":178,"box":{"x":68,"y":377,"width":817,"height":12}},{"id":"37761999-50f4-4925-b959-8d7942a4e144","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":178,"box":{"x":68,"y":392,"width":837,"height":12}},{"id":"ece9f43c-58a2-40fb-9f86-40fb05bf0786","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":178,"box":{"x":69,"y":407,"width":759,"height":12}},{"id":"64b20709-644f-4a3d-8c0f-b476341ba1e4","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":178,"box":{"x":101,"y":430,"width":779,"height":11}},{"id":"51cf072c-26a1-4dee-b0a2-9ceab554cd6d","block_type":"box","text":"Fund’s operating expenses and the amount of realized and unrealized net capital gains or losses during the period.","page_number":178,"box":{"x":70,"y":445,"width":819,"height":12}},{"id":"3039fd4d-23a8-4898-9a37-374b6b0d559d","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":178,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"a66b9814-0cce-4cf2-9a38-438c32eaebf0","block_type":"box","text":"less than their original cost.","page_number":178,"box":{"x":70,"y":476,"width":196,"height":11}},{"id":"b4e9b538-4c4d-4878-9768-57167d05c08f","block_type":"box","text":"In order to reflect the reduced sales charges in the case of front-end load shares or the waiver of the CDSC in","page_number":178,"box":{"x":102,"y":498,"width":782,"height":11}},{"id":"b85dc626-1784-4c64-9985-7fe87b2d8d53","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":178,"box":{"x":68,"y":513,"width":836,"height":11}},{"id":"fdc9697c-d9a5-4a5e-b829-de4494ab5d16","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":178,"box":{"x":69,"y":528,"width":807,"height":12}},{"id":"8c0ef464-220a-49b3-891e-363a3e551f80","block_type":"box","text":"take into account the reduced, and not the maximum, sales charge or may take into account the CDSC waiver and,","page_number":178,"box":{"x":68,"y":544,"width":820,"height":11}},{"id":"17b50478-b232-4ef2-a5f8-5bd65d61f6f1","block_type":"box","text":"therefore, may reflect greater total return since, due to the reduced sales charges or the waiver of sales charges, a","page_number":178,"box":{"x":68,"y":559,"width":824,"height":11}},{"id":"d8cce044-2789-418e-a082-860cfd4dacd9","block_type":"box","text":"lower amount of expenses is deducted.","page_number":178,"box":{"x":70,"y":574,"width":278,"height":11}},{"id":"20dbde36-4806-4a74-89a8-5f710e6a97c6","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":178,"box":{"x":102,"y":596,"width":741,"height":12}},{"id":"9ccf5431-ea5e-48cb-a7c7-bd351a3138ff","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":178,"box":{"x":70,"y":612,"width":830,"height":11}},{"id":"6617f588-3580-4961-a111-13462a3d123a","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”), Money Magazine, U.S.","page_number":178,"box":{"x":70,"y":627,"width":810,"height":11}},{"id":"60d6099f-a3f1-4a7d-a955-67116adb3b40","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine or other industry publications. When","page_number":178,"box":{"x":70,"y":642,"width":795,"height":11}},{"id":"e5503d18-0f53-475c-bb28-c0283e106a34","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":178,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"33401e58-1b3c-4380-97a2-6340668363d1","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":178,"box":{"x":69,"y":672,"width":803,"height":11}},{"id":"5823842d-ea3c-4dbe-b28b-ede537f6636d","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":178,"box":{"x":69,"y":687,"width":824,"height":11}},{"id":"e9b1b7dd-8bf1-4fb7-a900-0b3332983366","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":178,"box":{"x":70,"y":702,"width":818,"height":12}},{"id":"34cab165-7ce5-45b9-be9c-df2201f7844e","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":178,"box":{"x":69,"y":718,"width":793,"height":11}},{"id":"c3311e20-b4f9-4665-b6bc-ae2767ac1a7b","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":178,"box":{"x":69,"y":732,"width":826,"height":12}},{"id":"6527b3e3-e16d-4cde-aad1-d6f99d2e6891","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":178,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"43456900-c79b-4476-b715-bc7897db29ae","block_type":"box","text":"developed by Fund management.","page_number":178,"box":{"x":69,"y":763,"width":233,"height":11}},{"id":"822cec3b-f29b-4ab6-89df-350d7525d670","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":178,"box":{"x":101,"y":785,"width":780,"height":12}},{"id":"1cf3963d-3d1a-4bbf-9142-e02a61ef168b","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":178,"box":{"x":70,"y":801,"width":810,"height":11}},{"id":"1e042c38-34b0-4b34-b07c-d4c9bf2457dd","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":178,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"8518e2a2-5e90-4903-97c3-dc8fde992ac7","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":178,"box":{"x":69,"y":831,"width":792,"height":11}},{"id":"17ac842e-4c6e-4f0d-be23-58124cff1d5d","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":178,"box":{"x":68,"y":846,"width":788,"height":11}},{"id":"32e70592-dd09-4311-98ed-e8ef1716f0e2","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":178,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"a1794049-6647-4996-9764-bd6282fe1e9a","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":178,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"7e6f0eb1-8ca0-4624-933c-52c1ae4fdf1e","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":178,"box":{"x":68,"y":891,"width":461,"height":11}},{"id":"0687bcb2-9546-49b2-b8a4-6aa7f466bdf9","block_type":"box","text":"II-138","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"050e7ae4-3e17-4e77-b4b8-d3f2d71427bb","block_type":"box","text":"NM1026U-5982643-178/241","page_number":178,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f0606789-9cab-4dbb-95da-680d695e19e8","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":179,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"523d1eb4-3b2a-4de5-8548-fd7fc86bef4e","block_type":"box","text":"The Board of Directors of the Funds has delegated the voting of proxies for the Funds’ securities to the Manager","page_number":179,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"f9749f51-3540-43a7-9cb4-624550662923","block_type":"box","text":"pursuant to (i) the Open-End Active and Fixed Income Index Fund Proxy Voting Policy (the “Active Fund Proxy Voting","page_number":179,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"2e32b61a-5c11-4dbf-b966-a502a435bdda","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":179,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"de1492bb-0ae8-42c1-8c7e-2067471f8f0b","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":179,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"6686d056-a23a-4dde-9208-92619dff1e5b","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":179,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"998020f6-16ef-414f-bb4c-d06e6b3980cb","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":179,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"81d60065-4b74-41e4-8892-7c9f5cfff24e","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":179,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"95acb76c-87b9-4000-a533-8f8dded31446","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":179,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"1b275d2b-af74-4bfb-862e-346af24adf1a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":179,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"876d17e2-3711-4504-8fee-9dc8554b79c6","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":179,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"b93b78bc-d63f-4385-8bd0-5fb6cfe6d3e4","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":179,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"a7e312fe-fdf4-4368-8465-f9092e528deb","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":179,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"84c6f53d-ee2a-426e-b509-3eb8056a995f","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":179,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"a863d6a4-4949-4984-979c-74ea80411f35","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":179,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"8b25072e-d433-4c1c-b86c-8c4148c00ae9","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":179,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"2eba1741-fa21-419c-b118-b97693ae8b11","block_type":"box","text":"If a Fund invests in an underlying fund managed by BlackRock, the Fund will use its proxy voting policy when","page_number":179,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"4efe8759-9b21-4e74-856f-7488f46ca358","block_type":"box","text":"voting on proxies for the underlying fund while the underlying fund will use its proxy voting policy when voting proxies","page_number":179,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"8baaaebe-e846-4a18-a8a9-a1f54fa81b52","block_type":"box","text":"on investments the underlying fund holds. Therefore, the Fund may use the Active Fund Proxy Voting Policy while an","page_number":179,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"1f5c3820-ba5f-4dab-a7ab-5f7fd8d0de07","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":179,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"de18e73a-c94b-4075-b11e-b506bb6d108e","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":179,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"067a7cfe-eb22-4541-97ef-407c7f5f9f66","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":179,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"79af527b-45c0-41e3-994c-e6f5d89add6d","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":179,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"951a0546-548d-44fd-8b35-040564f00b12","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":179,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"e3118d5b-4f28-46e7-9b10-1ceed2605d8c","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":179,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"2f909b86-fafb-4e90-954d-baf9c3035fc9","block_type":"box","text":"month period ended June 30 is available without charge, (i) at www.blackrock.com/proxyrecords and (ii) on the","page_number":179,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"58f90d55-6419-4bb1-a28c-a78bc74e2d40","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":179,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"448cb8fd-168a-44ec-9330-ad9b5eaed081","block_type":"box","text":"GENERAL INFORMATION","page_number":179,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"4d3fc820-7b46-4fa8-b7f0-348b478d5ce7","block_type":"box","text":"Description of Shares","page_number":179,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"34c403aa-04d0-4f99-896e-dce973b5fceb","block_type":"box","text":"Shareholders of a Fund are entitled to one vote for each full share held and fractional votes for fractional shares","page_number":179,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"79889cfd-4e20-4c66-ac46-dac6406d06d9","block_type":"box","text":"held in the election of Directors and generally on other matters submitted to the vote of shareholders of the Fund.","page_number":179,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"4aebeaea-9ea7-48cd-920f-74bd49ae6e2d","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":179,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"6380047d-f442-4faa-b6f2-bbc05c0b7c85","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":179,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"b99c0a2f-29b1-45b8-85ca-c2682957d1ce","block_type":"box","text":"more than 50% of the shares voting in the election of Directors can, if they choose to do so, elect all the Directors of","page_number":179,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"fde1b5fa-c258-4cdc-9c72-aa98a205a1ac","block_type":"box","text":"a Fund, in which event the holders of the remaining shares would be unable to elect any person as a Director.","page_number":179,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"2f92ac77-e120-405c-a3ea-9b3db305226f","block_type":"box","text":"No Fund intends to hold annual meetings of shareholders in any year in which the Investment Company Act does","page_number":179,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"58149b6d-c6cd-4268-aa4d-2605c99e6137","block_type":"box","text":"not require shareholders to act upon any of the following matters: (i) election of Directors; (ii) approval of a","page_number":179,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"b2eea482-6c9f-4553-b058-64fc7d73b2c1","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":179,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"4c6c670e-75a5-4a99-8ce7-08cf25cf17d5","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":179,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"263bd6b7-971e-433b-83fe-2c311ff31458","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":179,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"7a0830ce-7e40-44a4-9c69-ce4bc8a34ef5","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":179,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"cd6dd8f3-2f2b-44d3-8915-3e709393d6c4","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":179,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"c1bf595c-abd6-4260-98d6-476e10e77cdb","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":179,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"bd3023ea-1b9b-4a49-8796-8ec59e95e134","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":179,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"41e58445-8eaf-489e-8ffd-734adf5b3b12","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":179,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"20695569-c069-40b3-98ae-d7ebe112946c","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":179,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"2a137927-277f-4a9b-af2e-a23b40e5a663","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":179,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"fbfecf48-cb12-4a3a-988c-2f275bf293d3","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":179,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"d03b2807-3378-4643-8ceb-efac48101365","block_type":"box","text":"with all amendments thereto (the “Declaration of Trust”), is on file in the office of the Secretary of the","page_number":179,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"08b422e6-6209-4433-a829-4ae5e1f09770","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":179,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"e462d873-f95e-4521-90b1-277ca704bd6e","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":179,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"40fbe314-3958-4d73-8c54-287d02e4b6f1","block_type":"box","text":"II-139","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3ad4c30b-4426-4886-a6bd-f483472f03ae","block_type":"box","text":"NM1026U-5982643-179/241","page_number":179,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"ffc52128-7cf1-4388-8f98-d75ea28b9a40","block_type":"box","text":"shareholder held personally liable for the obligations of the trust. The Declaration of Trust also provides that a trust","page_number":180,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"1688586b-6230-49be-8fb5-93667b11aef5","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":180,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"031651e8-97c8-4bc3-b3d5-27e6f185f3b1","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":180,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"a21d65e6-c27a-4ef1-a080-818adb5f4135","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":180,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"07fa8bdb-658d-4324-b3e3-1132fd096e15","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":180,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"5cdce09a-78f3-4aba-a88f-d1657537c5e2","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":180,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"462b8629-a79d-438f-8ab0-8cfa6dee6a64","block_type":"box","text":"Additional Information","page_number":180,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"9b766eff-cf70-4835-a9b5-a135a8b0a6af","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":180,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"be7c01de-5c65-4e3a-8454-0d0f33179185","block_type":"box","text":"has reserved the right to (i) withdraw its consent to the use of such name by a Fund if the Fund ceases to retain","page_number":180,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"e4e4c236-b127-4955-a4d7-d0c1d43a48cd","block_type":"box","text":"BlackRock Advisors, LLC or BlackRock Fund Advisors, as applicable, as investment adviser and (ii) to grant the use of","page_number":180,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"d8b4b7d7-0c3f-4b5d-b9ca-e83d180801f5","block_type":"box","text":"such name to any other company.","page_number":180,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"9cb41140-153d-40c3-ae1a-bc86e8a8d761","block_type":"box","text":"II-140","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b3b806a4-959a-47b2-a760-96a519f7bd96","block_type":"box","text":"NM1026U-5982643-180/241","page_number":180,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"8f8d3973-d721-40b8-9b81-6bf423ddcd6b","block_type":"box","text":"APPENDIX A","page_number":181,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"3342bfb2-8d36-48bb-93a4-40db75312f0f","block_type":"box","text":"Description of Bond Ratings","page_number":181,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"94da40c8-cc60-4090-b0df-d37912bf72f0","block_type":"box","text":"A rating is generally assigned to a fixed-income security at the time of issuance by a credit rating agency","page_number":181,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"f6f5b25f-d4b2-40ef-8414-d0aafc546bb7","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the SEC. While NRSROs may from","page_number":181,"box":{"x":69,"y":106,"width":827,"height":12}},{"id":"bb9d4f6f-9077-41e0-b50b-247c6e395c2e","block_type":"box","text":"time to time revise such ratings, they under take no obligation to do so, and the ratings given to securities at","page_number":181,"box":{"x":68,"y":122,"width":775,"height":11}},{"id":"4c066882-215d-4453-a89a-d717eb7e1054","block_type":"box","text":"issuance do not necessarily represent ratings which would be given to these securities on a par ticular subsequent","page_number":181,"box":{"x":70,"y":137,"width":815,"height":11}},{"id":"0f07b5ec-efee-4ff3-9ac2-8ba3cb2ffc6f","block_type":"box","text":"date.","page_number":181,"box":{"x":69,"y":152,"width":34,"height":9}},{"id":"2d58bce8-33f8-4e98-a4fb-d3993cb27368","block_type":"box","text":"NRSROs may rate specific investments (","page_number":181,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"8cbdd9b1-f087-49d6-9ab3-e02843384dfd","block_type":"box","text":"e.g.","page_number":181,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"85986829-fa60-4f2e-815e-9431fb361694","block_type":"box","text":", bonds), issuers (","page_number":181,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"6be6f7a2-ddc5-49e9-b30a-a691749fd170","block_type":"box","text":"e.g.","page_number":181,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"a339ecb9-ed9b-4708-a434-a30e54447901","block_type":"box","text":", corporations, governments and financial","page_number":181,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"a9c85380-332b-4389-9915-af1a1dc747f5","block_type":"box","text":"institutions) and/or programs (","page_number":181,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"72294b21-2386-4abc-862a-ee07aaa17445","block_type":"box","text":"e.g.","page_number":181,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"fb1ffc6b-046c-4b11-9f4a-8919984f281c","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":181,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"7a007e06-decd-48a8-8365-eb9f96cfc6b6","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":181,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"264b3585-1914-4926-8a14-44106c943f80","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":181,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"5efc5b8f-1c1e-4bcc-a8b2-0e8ca8e073d2","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where a NRSRO has not rated the","page_number":181,"box":{"x":70,"y":235,"width":798,"height":11}},{"id":"a1d569b0-399d-446b-8e76-3e53cece505a","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":181,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"2a0d6599-4c28-4fe9-9e28-6c90d02be8d9","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":181,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"ed57db79-f9ee-48c2-9902-f04332c0e4e3","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":181,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"8f3e94d8-f605-4902-8dbf-45cc606f5c41","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":181,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"6d2d642f-a781-4323-8d4a-6d992f9519a0","block_type":"box","text":"security (","page_number":181,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"e540b79b-fc1d-4885-b5f8-c568ae185066","block_type":"box","text":"e.g.","page_number":181,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"6e350209-5ba0-45ec-b35e-7f82095b0b78","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":181,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"d96b1f6b-f36e-402d-aa1e-820ea1e03dda","block_type":"box","text":"highest of the multiple ratings.","page_number":181,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"4c048b5b-51d4-4c1c-9789-84bc1a4ad4e9","block_type":"box","text":"New issue securities (regardless of type) may not be rated by a NRSRO at the time of their initial offering.","page_number":181,"box":{"x":102,"y":348,"width":751,"height":12}},{"id":"2f72297d-f2cb-4634-a64b-d1560b191753","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":181,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"1c9940ec-df9a-49cb-bd42-e59cddc09203","block_type":"box","text":"determined by the underwriter and/or issuer) or a NRSRO rating for the issuer of the security. If applicable, when","page_number":181,"box":{"x":69,"y":378,"width":804,"height":12}},{"id":"d9996e37-0af5-4a0c-bb7a-49dc272d01b7","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by a NRSRO, BlackRock may attribute","page_number":181,"box":{"x":69,"y":394,"width":831,"height":11}},{"id":"7f7878c1-25df-4be8-9bc8-827a822008e8","block_type":"box","text":"an expected rating to the security based on: (i) the expected rating of the security set for th in the preliminary","page_number":181,"box":{"x":69,"y":409,"width":777,"height":11}},{"id":"9bbfd883-9b16-4809-8b72-d290d3bea6ad","block_type":"box","text":"prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in the","page_number":181,"box":{"x":70,"y":424,"width":779,"height":11}},{"id":"92b4fa55-8800-430a-82a3-558d414baaf9","block_type":"box","text":"preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of a","page_number":181,"box":{"x":70,"y":439,"width":819,"height":11}},{"id":"3276fd25-7d19-4dd1-b555-b6ffb816846a","block_type":"box","text":"prior issuance having a similar structure or the same sponsor.","page_number":181,"box":{"x":70,"y":454,"width":441,"height":11}},{"id":"d699271b-3706-4270-95e9-f99c2d75cd3e","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":181,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"906ddaa1-f5ee-4d62-996c-f956aa9a860c","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":181,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"a409e58a-60b4-4b66-b59f-a3a436c8aa49","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":181,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"a65c4493-e4e9-4376-899c-e3b36977cf99","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":181,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"9da18136-0995-441a-bb8e-f480d5d20f16","block_type":"box","text":"invest, directly or indirectly, in securities that are not rated by a rating agency or securities with a credit rating that","page_number":181,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"d1402248-ea7c-43b9-8a03-1c6d1213ca02","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":181,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"354958e7-97d1-42f2-951c-27bc8aabc44a","block_type":"box","text":"downgraded but not yet removed from an index, following the removal of a security from an index prior to its sale by","page_number":181,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"a82ce83f-959d-47f3-9a99-f247d86d0327","block_type":"box","text":"the fund or as a result of a corporate action or restructuring affecting an issuer of a security held by the fund.","page_number":181,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"285dd24d-0c9a-462b-b913-b58bf85698bf","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":181,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"82234799-e75c-4358-97cf-7f2d12cdea6d","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds. Evaluation of these","page_number":181,"box":{"x":70,"y":620,"width":773,"height":12}},{"id":"23018233-0212-45e7-993c-00af07440ad4","block_type":"box","text":"securities is dependent on BlackRock’s judgment, analysis and experience in the evaluation of such securities.","page_number":181,"box":{"x":69,"y":635,"width":791,"height":12}},{"id":"514a0113-8721-4e58-8fc1-cedf208fae6c","block_type":"box","text":"Investors should note that the assignment of a rating to a security by an NRSRO may not reflect the effect of","page_number":181,"box":{"x":102,"y":658,"width":776,"height":11}},{"id":"eac6d90f-b9e4-4326-90f8-12f8c6e3792c","block_type":"box","text":"recent developments on the issuer’s ability to make interest and principal payments or on the likelihood of default.","page_number":181,"box":{"x":69,"y":673,"width":818,"height":11}},{"id":"fd5b3678-d6c0-44d0-9ec6-ab6df443bb27","block_type":"box","text":"Securities deemed to be high yield are rated below Baa3 by Moody’s and below BBB- by S&P Global Ratings and","page_number":181,"box":{"x":102,"y":696,"width":799,"height":11}},{"id":"40baf7da-0376-4308-9dab-ab7de8fa403a","block_type":"box","text":"Fitch.","page_number":181,"box":{"x":70,"y":711,"width":35,"height":9}},{"id":"639230f2-5407-4f50-8d74-a053ddc128f5","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":181,"box":{"x":101,"y":734,"width":643,"height":11}},{"id":"1b5f2ae7-4556-46e5-b1e6-6b7d425f017b","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":181,"box":{"x":68,"y":764,"width":616,"height":11}},{"id":"2852c47c-f012-4f35-8664-478d296effe9","block_type":"box","text":"Ratings assigned on Moody’s global long-term and shor t-term rating scales are forward-looking opinions of the","page_number":181,"box":{"x":102,"y":787,"width":787,"height":11}},{"id":"e6a4818c-08c9-45af-b681-d12a5a851ea9","block_type":"box","text":"relative credit risks of financial obligations issued by non-financial corporates, financial institutions, structured","page_number":181,"box":{"x":69,"y":802,"width":785,"height":11}},{"id":"b987f9b3-b4e9-44a1-b549-aa2074919efe","block_type":"box","text":"finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the risk that an","page_number":181,"box":{"x":68,"y":817,"width":820,"height":11}},{"id":"2c3c54ff-524b-490f-b614-687e22e0dd2c","block_type":"box","text":"entity may not meet its contractual financial obligations as they come due and any estimated financial loss in the","page_number":181,"box":{"x":69,"y":832,"width":807,"height":11}},{"id":"8aedfcb4-3867-493a-8d27-6f3b02bc9472","block_type":"box","text":"event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are those that call","page_number":181,"box":{"x":69,"y":847,"width":835,"height":11}},{"id":"b40f54be-fc30-430f-913c-7c0de172f9a8","block_type":"box","text":"for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based upon standard","page_number":181,"box":{"x":68,"y":862,"width":822,"height":12}},{"id":"07a1e1b6-95d3-4304-8b2f-5b72e7622737","block_type":"box","text":"sources of variation (","page_number":181,"box":{"x":69,"y":877,"width":149,"height":11}},{"id":"c4abc6b5-bdbe-4bbe-a68a-25ccec2a073e","block_type":"box","text":"e.g.","page_number":181,"box":{"x":220,"y":879,"width":25,"height":10}},{"id":"88195bdb-f463-4de2-8400-862ca0c5daf4","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses the issuer’s","page_number":181,"box":{"x":247,"y":877,"width":637,"height":12}},{"id":"3937894a-823c-4680-98d4-a672f78cf791","block_type":"box","text":"ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do not address","page_number":181,"box":{"x":69,"y":892,"width":820,"height":12}},{"id":"33d6b3d4-c64e-426b-bcf4-f6005cd9dffa","block_type":"box","text":"non-standard sources of variation in the amount of the principal obligation (","page_number":181,"box":{"x":69,"y":908,"width":536,"height":11}},{"id":"4f511b58-c425-4c48-8613-2bdc741d1d5c","block_type":"box","text":"e.g.","page_number":181,"box":{"x":607,"y":909,"width":25,"height":10}},{"id":"d0668757-8be4-4d5f-9fd6-bcd8ea89715a","block_type":"box","text":", equity indexed), absent an express","page_number":181,"box":{"x":634,"y":908,"width":257,"height":11}},{"id":"5ebc43f0-4caa-4ae6-964a-4d9440d4cde2","block_type":"box","text":"A-1","page_number":181,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"20ede113-5758-4ee6-91e7-c6f7df9bef75","block_type":"box","text":"NM1026U-5982643-181/241","page_number":181,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"34ecc0d2-f9ee-4910-9d1c-d0dc7f7ae5e9","block_type":"box","text":"statement to the contrary in a press release accompanying an initial rating. Long-term ratings are assigned to issuers","page_number":182,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"051b4f7c-5105-4559-9987-346891908710","block_type":"box","text":"or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or","page_number":182,"box":{"x":69,"y":60,"width":761,"height":11}},{"id":"f178cc82-317f-4c30-a798-9940a69a3067","block_type":"box","text":"impairment on contractual financial obligations and the expected financial loss suffered in the event of default or","page_number":182,"box":{"x":70,"y":75,"width":806,"height":11}},{"id":"35ed3705-b154-4e00-b2d4-9423ddd86350","block_type":"box","text":"impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen months or less and","page_number":182,"box":{"x":70,"y":90,"width":818,"height":11}},{"id":"9989cfec-8b39-468d-a146-2fbf6437769a","block_type":"box","text":"reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected","page_number":182,"box":{"x":69,"y":105,"width":775,"height":11}},{"id":"03b89f43-9e78-46b9-a577-2762a070e08d","block_type":"box","text":"financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level and","page_number":182,"box":{"x":68,"y":120,"width":764,"height":12}},{"id":"d52d55a1-ee07-495a-81bc-8106d80f8149","block_type":"box","text":"instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly available","page_number":182,"box":{"x":70,"y":136,"width":819,"height":11}},{"id":"d17e9a8b-f2b7-4e45-a48a-d18ea7f07bad","block_type":"box","text":"although private and unpublished ratings may also be assigned.","page_number":182,"box":{"x":69,"y":151,"width":454,"height":11}},{"id":"87201fb4-6ff5-4488-a91d-6db565a553ca","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":182,"box":{"x":102,"y":173,"width":542,"height":11}},{"id":"1e51a516-14dd-46ae-9471-27a4396334e1","block_type":"box","text":"i.e.","page_number":182,"box":{"x":646,"y":173,"width":20,"height":9}},{"id":"bd0e7772-3e73-418a-b04a-20045627b036","block_type":"box","text":", ratings on nonfinancial","page_number":182,"box":{"x":669,"y":173,"width":169,"height":11}},{"id":"ae214ba3-df23-4753-9996-f60e11d6bece","block_type":"box","text":"corporate, financial institution, and public sector entities) on the global long-term scale by adding (sf) to all structured","page_number":182,"box":{"x":69,"y":188,"width":837,"height":12}},{"id":"9be84d69-925d-47b9-bea9-4625c1492012","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":182,"box":{"x":68,"y":203,"width":828,"height":12}},{"id":"404dd2d3-ce88-41be-b22e-a551f7e7cd98","block_type":"box","text":"and fundamental ratings at the same letter grade level will behave the same. The (sf) indicator for structured finance","page_number":182,"box":{"x":69,"y":218,"width":832,"height":12}},{"id":"c48bfd8a-e6c7-4429-94a5-6054454030a8","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":182,"box":{"x":69,"y":234,"width":797,"height":11}},{"id":"4c87fbae-49b7-403f-964b-9fe848baf87f","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":182,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"feaf3fea-39fa-424a-bc55-1ed65bfd96db","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":182,"box":{"x":69,"y":264,"width":821,"height":11}},{"id":"5b9ef7f2-6fc7-456f-950e-f1029b4fe68b","block_type":"box","text":"of time.","page_number":182,"box":{"x":69,"y":279,"width":53,"height":9}},{"id":"c7e9db58-444b-4834-a173-be023a116b22","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":182,"box":{"x":69,"y":309,"width":395,"height":11}},{"id":"73f0ecb9-234c-42c9-ae38-a3530dbe62e1","block_type":"box","text":"Aaa Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit","page_number":182,"box":{"x":68,"y":337,"width":815,"height":11}},{"id":"0927692f-0b8f-47ae-a30a-96be2075432e","block_type":"box","text":"risk.","page_number":182,"box":{"x":197,"y":352,"width":28,"height":9}},{"id":"249028bd-a7e3-4b81-a355-f34b95ae2e64","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":182,"box":{"x":68,"y":372,"width":773,"height":11}},{"id":"81c7090b-9fe7-4288-84d1-3e3fca7de12c","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":182,"box":{"x":68,"y":392,"width":776,"height":12}},{"id":"15a7db8f-399c-4346-8980-55e71c446bc0","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":182,"box":{"x":70,"y":413,"width":813,"height":11}},{"id":"184f1108-cc0c-429a-840f-fd3a2bf6b5fe","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":182,"box":{"x":196,"y":428,"width":385,"height":11}},{"id":"541d147a-ea92-418f-8c06-be660fa322d4","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":182,"box":{"x":70,"y":448,"width":775,"height":11}},{"id":"78d6d2e1-a5f3-4f26-a0de-4b7996d4f1f3","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":182,"box":{"x":70,"y":468,"width":707,"height":11}},{"id":"c030560a-c882-421b-a17f-d404a873ee96","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":182,"box":{"x":69,"y":488,"width":810,"height":11}},{"id":"bec6bce0-1467-4326-b26e-58b23e75718f","block_type":"box","text":"credit risk.","page_number":182,"box":{"x":196,"y":503,"width":74,"height":9}},{"id":"f07c4ddd-2507-41c7-9a3a-9d16d96f0011","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":182,"box":{"x":69,"y":523,"width":783,"height":12}},{"id":"ed5243d7-cd9e-41e6-959e-b5bbca0e4f22","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":182,"box":{"x":197,"y":538,"width":322,"height":12}},{"id":"3c39af20-0909-47a0-a205-ac9d2114f8a3","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":182,"box":{"x":69,"y":559,"width":834,"height":11}},{"id":"44ee249e-5e23-4a61-9412-790bb73e0f8c","block_type":"box","text":"of principal or interest.","page_number":182,"box":{"x":196,"y":574,"width":160,"height":11}},{"id":"cd25d396-c516-4532-9aae-c31b2f3af2df","block_type":"box","text":"Note:","page_number":182,"box":{"x":102,"y":594,"width":37,"height":9}},{"id":"4b26592e-4b9d-4416-948c-7b06d646d693","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":182,"box":{"x":146,"y":594,"width":731,"height":11}},{"id":"4a7d7e64-0741-4053-bb30-a4e0611d5381","block_type":"box","text":"Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category; the modifier 2","page_number":182,"box":{"x":69,"y":609,"width":831,"height":11}},{"id":"fb02cd4e-b14d-4fd4-a761-428356aacb73","block_type":"box","text":"indicates a mid-range ranking; and the modifier 3 indicates a ranking in the lower end of that generic rating category.","page_number":182,"box":{"x":70,"y":624,"width":829,"height":11}},{"id":"067d9391-53d9-4c5f-a784-23957dbd9ebb","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":182,"box":{"x":68,"y":639,"width":795,"height":12}},{"id":"7b03525f-a2e2-4012-bc61-549aa4423fcc","block_type":"box","text":"companies, and securities firms.","page_number":182,"box":{"x":69,"y":654,"width":232,"height":11}},{"id":"1a4b7e97-2bd3-4117-9a7c-5d6477a9f9b4","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":182,"box":{"x":102,"y":677,"width":787,"height":11}},{"id":"7af456d2-b64f-4604-91fd-ae41e5aa73bb","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":182,"box":{"x":68,"y":692,"width":788,"height":11}},{"id":"a1331a1d-1da7-4289-93f8-2ea30b2a3736","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":182,"box":{"x":69,"y":707,"width":833,"height":12}},{"id":"6a94767e-63b6-4978-95d6-8589d7998475","block_type":"box","text":"long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with","page_number":182,"box":{"x":70,"y":722,"width":809,"height":12}},{"id":"3ed2733c-61b5-4096-a9b6-283c6c3acfe5","block_type":"box","text":"that security.","page_number":182,"box":{"x":68,"y":738,"width":91,"height":11}},{"id":"d5432e3f-3391-466c-8aae-9364723f55b8","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":182,"box":{"x":69,"y":768,"width":400,"height":11}},{"id":"a671e70d-43dc-4f4b-93c4-8653231f6cef","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":182,"box":{"x":69,"y":795,"width":658,"height":12}},{"id":"10d1d28a-6c54-472f-9461-a7e6bc6d60e1","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":182,"box":{"x":69,"y":816,"width":645,"height":11}},{"id":"18b2373c-f71f-4c2b-ab6d-8a87ebb912e4","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":182,"box":{"x":69,"y":836,"width":686,"height":11}},{"id":"000f9471-cbc9-40d0-b10d-c0afb80bed2f","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":182,"box":{"x":70,"y":856,"width":778,"height":11}},{"id":"a13c1218-92ff-4f91-9bf3-a780c707b26f","block_type":"box","text":"categories.","page_number":182,"box":{"x":196,"y":871,"width":77,"height":11}},{"id":"4b1b921b-3119-41d1-9e9a-c4aeb7ee4be4","block_type":"box","text":"A-2","page_number":182,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"4a382f30-ea2d-4688-9382-d6c30193aafe","block_type":"box","text":"NM1026U-5982643-182/241","page_number":182,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"c136cb07-5356-4417-8231-e207fca43dff","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":183,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"5dc33f71-5acb-44c0-8d8e-07d401d34dd4","block_type":"box","text":"Description of Moody’s Short-Term Obligation Ratings","page_number":183,"box":{"x":69,"y":75,"width":391,"height":11}},{"id":"63c0c2d1-c5cd-4fb7-b6bd-9b313dff7c3e","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":183,"box":{"x":102,"y":98,"width":784,"height":11}},{"id":"0db3e983-64e7-4d8f-ae6e-5e1000b9b2b5","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":183,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"93f6cb94-a268-4c68-97e3-90d2e7415ea5","block_type":"box","text":"an issuer’s self-liquidity.","page_number":183,"box":{"x":69,"y":128,"width":170,"height":11}},{"id":"ea429669-9c90-4379-a66e-2d5f5a03f30a","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":183,"box":{"x":102,"y":150,"width":736,"height":12}},{"id":"4a59dc64-477f-4803-96d5-03d64904adae","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":183,"box":{"x":70,"y":166,"width":796,"height":11}},{"id":"b904a331-ad92-4640-be8a-e35395595d30","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":183,"box":{"x":102,"y":188,"width":803,"height":11}},{"id":"effb246b-8321-4562-8c83-4fcb0ceac962","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":183,"box":{"x":68,"y":203,"width":823,"height":12}},{"id":"fb46529a-b5df-4241-89e5-2bf8ffef7877","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":183,"box":{"x":69,"y":218,"width":480,"height":12}},{"id":"e95c7d19-3edf-4e1f-8074-cf9f3cbbcecb","block_type":"box","text":"MIG Scale","page_number":183,"box":{"x":102,"y":241,"width":71,"height":9}},{"id":"440151ec-d11d-4d0c-af70-207b5bbb40bb","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":183,"box":{"x":70,"y":269,"width":802,"height":11}},{"id":"3521d47d-92fe-43c3-a920-ee39f04a5b72","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":183,"box":{"x":196,"y":284,"width":703,"height":11}},{"id":"e27f4224-3852-4f4c-94a5-dde90af5d01a","block_type":"box","text":"refinancing.","page_number":183,"box":{"x":197,"y":299,"width":80,"height":11}},{"id":"ed15fd54-593d-4c98-94c2-d114360bed01","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":183,"box":{"x":70,"y":319,"width":809,"height":12}},{"id":"677494f2-4881-44d3-8a0b-e21bc6695a4d","block_type":"box","text":"large as in the preceding group.","page_number":183,"box":{"x":197,"y":335,"width":224,"height":11}},{"id":"3c5a76dc-fcfb-4609-bbf3-41d60c57b9e5","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":183,"box":{"x":70,"y":355,"width":785,"height":11}},{"id":"f816aa18-6216-45f9-b786-85bb6c0cb84c","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":183,"box":{"x":197,"y":370,"width":554,"height":11}},{"id":"2d56c27a-4a69-48fa-bf7e-14eaef041fa9","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":183,"box":{"x":69,"y":390,"width":813,"height":11}},{"id":"05d2cb86-6579-485f-b651-8820bfda7e32","block_type":"box","text":"lack sufficient margins of protection.","page_number":183,"box":{"x":197,"y":405,"width":259,"height":11}},{"id":"2934b670-f26c-42a4-81fb-d3b649b30e86","block_type":"box","text":"Description of Moody’s Demand Obligation Ratings","page_number":183,"box":{"x":69,"y":433,"width":371,"height":11}},{"id":"7e8a96ff-06c8-40aa-8236-d66b6d0050d6","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":183,"box":{"x":102,"y":455,"width":804,"height":12}},{"id":"6b6a8f0d-c723-49cf-9a31-6c0a7148b97d","block_type":"box","text":"are a long-term rating and a shor t-term demand obligation rating. The long-term rating addresses the issuer’s ability","page_number":183,"box":{"x":69,"y":471,"width":826,"height":11}},{"id":"bd24b915-a5a4-43b8-97d9-ffc600e740cf","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term demand obligation rating addresses the ability of","page_number":183,"box":{"x":68,"y":486,"width":832,"height":11}},{"id":"97719fd9-51c8-456d-b3ef-462a7fff39ea","block_type":"box","text":"the issuer or the liquidity provider to make payments associated with the purchase-price-upon-demand feature","page_number":183,"box":{"x":68,"y":501,"width":784,"height":11}},{"id":"ad5d9cf6-79b8-4098-985d-b61383d17c65","block_type":"box","text":"(“demand feature”) of the VRDO. The shor t-term demand obligation rating uses the VMIG scale. VMIG ratings with","page_number":183,"box":{"x":69,"y":516,"width":811,"height":11}},{"id":"f4805f4d-1ff3-4681-bd0f-a2fbd937a51a","block_type":"box","text":"liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t provider, or the long","page_number":183,"box":{"x":70,"y":531,"width":819,"height":11}},{"id":"acac85ca-bd83-4ed1-892f-ef23ce7a88de","block_type":"box","text":"term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of VMIG ratings of","page_number":183,"box":{"x":68,"y":546,"width":802,"height":11}},{"id":"377b2467-6e4d-4fd0-980c-1fe92d74d6ff","block_type":"box","text":"demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to reflect the risk that","page_number":183,"box":{"x":69,"y":561,"width":833,"height":11}},{"id":"5e7218ef-8804-415c-ac7d-b73d2d639054","block_type":"box","text":"external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment grade.","page_number":183,"box":{"x":69,"y":576,"width":719,"height":12}},{"id":"9af63d28-46f9-46e3-a943-0b7bfa0d8575","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":183,"box":{"x":102,"y":599,"width":807,"height":11}},{"id":"72f8f849-bf7e-4931-bae6-2a48c9709603","block_type":"box","text":"less than every three years. If the frequency of the demand feature is less than three years but the purchase price is","page_number":183,"box":{"x":70,"y":614,"width":833,"height":11}},{"id":"a1ef70fc-4717-4358-8d21-09396ad99c5c","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":183,"box":{"x":70,"y":629,"width":635,"height":11}},{"id":"fbd6d6d2-b0b4-4b94-82a4-e4b279090922","block_type":"box","text":"VMIG Scale","page_number":183,"box":{"x":101,"y":652,"width":81,"height":9}},{"id":"95809316-89ef-480c-916b-f0a6abd90f2a","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":183,"box":{"x":68,"y":680,"width":808,"height":11}},{"id":"08f3d114-dff4-4e74-9e23-56dcebd5b49a","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections that ensure","page_number":183,"box":{"x":196,"y":695,"width":695,"height":11}},{"id":"215129da-03f8-46d1-ada9-3fe4b28879cd","block_type":"box","text":"the timely payment of purchase price upon demand.","page_number":183,"box":{"x":195,"y":710,"width":370,"height":11}},{"id":"7fe658fc-5150-47e0-a1d8-fd877de2515d","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":183,"box":{"x":68,"y":730,"width":834,"height":11}},{"id":"778af1bf-36f9-43e5-946e-bb74106f4cd6","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections that ensure the timely","page_number":183,"box":{"x":196,"y":745,"width":691,"height":11}},{"id":"18e4400a-71fe-4093-9ccd-d9e50aefe95b","block_type":"box","text":"payment of purchase price upon demand.","page_number":183,"box":{"x":197,"y":760,"width":294,"height":11}},{"id":"fbf9ae2d-17db-4811-8dcd-a330c2a95cfa","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":183,"box":{"x":68,"y":780,"width":768,"height":12}},{"id":"22a40d40-bbd4-4eda-856a-d37cadce208d","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections","page_number":183,"box":{"x":196,"y":795,"width":697,"height":12}},{"id":"f4870944-d4be-4d87-8de7-a2b16d23effd","block_type":"box","text":"that ensure the timely payment of purchase price upon demand.","page_number":183,"box":{"x":195,"y":811,"width":457,"height":11}},{"id":"65b8b8c5-3529-41b5-9c99-4113818e5315","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":183,"box":{"x":69,"y":831,"width":820,"height":11}},{"id":"efdc7e79-4bed-45cc-912d-93dfa6a55c3c","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":183,"box":{"x":197,"y":846,"width":711,"height":11}},{"id":"1a44d89f-decf-45bf-830a-c20e34d0ab90","block_type":"box","text":"may lack the structural or legal protections necessary to ensure the timely payment of purchase","page_number":183,"box":{"x":197,"y":861,"width":684,"height":11}},{"id":"c3e2785b-be78-409d-8725-9b3919da011e","block_type":"box","text":"price upon demand.","page_number":183,"box":{"x":197,"y":876,"width":139,"height":11}},{"id":"de6c29fe-fc2b-476c-9f7d-3efc23011b36","block_type":"box","text":"A-3","page_number":183,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"f82350b2-e438-4dd4-a4c7-32bf8e5b7f4c","block_type":"box","text":"NM1026U-5982643-183/241","page_number":183,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"d12ae00c-0174-4931-8eca-8df6f1db2d31","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":184,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"e28257dd-039a-4f9d-ab72-084e575dca5f","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":184,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"61ad95ec-129a-4f72-9e61-e389b34795fc","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":184,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"3d1a139e-093d-4608-a535-fc8d6aa0c2c1","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":184,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"fd843e37-f580-4118-8364-9084e39a5ee0","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":184,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"bdc9bfb7-47fa-4585-9027-ec1790fc8f2e","block_type":"box","text":"which the obligation is denominated. The opinion reflects S&P’s view of the obligor’s capacity and willingness to meet","page_number":184,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"3d74500e-4902-44e6-994e-d73c86bb2dd1","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":184,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"f547654c-8acc-4180-bf55-725d4f3e59e9","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":184,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"6efa33fb-8162-46b8-84f9-2e071a269264","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":184,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"d6800d96-b7fa-47b4-9f87-0898c4885e5b","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":184,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"1fc58caf-7ae4-4b80-a047-1a491d5a7dea","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":184,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"12822cab-f7b9-47bc-a702-8fe7dc83ce42","block_type":"box","text":"put features on long-term obligations. S&P would typically assign a long-term issue credit rating to an obligation with","page_number":184,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"0f9df15a-f795-4eaa-8186-f7b12733c048","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":184,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"34c61ae5-cff9-4d9b-9a3f-f3a3a4e5a78d","block_type":"box","text":"from these guidelines based on market practices. Medium-term notes are assigned long-term ratings.","page_number":184,"box":{"x":68,"y":256,"width":724,"height":12}},{"id":"3934be80-9439-4f07-b446-7fd72981a92e","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":184,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"d3dffda0-b9da-45b8-a8ae-181e0b3bc68d","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"112aaf7d-47a6-44cf-a9e8-652b2461d579","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":184,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"e5222765-3dd3-406c-b94d-5d78d5958afa","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":184,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"a2585750-4400-48ed-a529-bfd4d9d3bd8e","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"c14f5780-9378-42b6-9d27-c053ac3837ce","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":184,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"c1a5e86b-3d75-47ad-adb0-7ea2a67cc4e1","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"e9c9ea3f-fba0-4476-b8d9-c6c92a73780a","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":184,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"ce06f656-b04d-4365-b2c1-c8e72d1c0ff0","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":184,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"fa2a5cb6-7827-4bbd-ae15-3ac8ecb61ce6","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":184,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"b02ea9df-e952-4ab8-8a61-fff94e650de1","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":184,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"3eceb100-d20b-4047-a62a-9a92e6c6b974","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":184,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"718b3147-5841-48de-8639-8b1244a6c952","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":184,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"22c87bc6-74ae-45b3-84d0-835f13a090f0","block_type":"box","text":"obligations.)","page_number":184,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"0fb9cd3e-9529-4230-9042-94c3b2698533","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":184,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"e7b047ed-e48a-4288-b2ff-d14f38710cdd","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":184,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"d0a28a7a-7cac-43d6-a23c-94b302cdf3cd","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":184,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"58925179-d35f-4c9c-b4b1-0ca99d65f0a1","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":184,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"5c347b9e-8407-4a78-a155-b57516fd4ea6","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":184,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"9ae94700-ec7f-435c-92e2-50a854825310","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":184,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"794ec9a5-e4ca-4290-be2f-906c97b96f5a","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":184,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"f58b026f-7a45-4d75-bd35-5a1a80267546","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":184,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"43e29906-30e2-4546-a0da-321440749461","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":184,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"019d802e-b671-40ab-a2bb-c66919ceb059","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":184,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"5668769c-4323-40bb-89e0-c08da666a77f","block_type":"box","text":"financial commitments on the obligation.","page_number":184,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"a51659f9-bbfe-4e9c-94c7-584d415c3165","block_type":"box","text":"BB,","page_number":184,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"a7fbc6ff-1dc7-47af-a38a-7a8cd0d90248","block_type":"box","text":"B,","page_number":184,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"0bef03fb-27f5-4fc5-b9c9-1c32c6d51a47","block_type":"box","text":"CCC,","page_number":184,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"2d6a6a51-8078-4c13-999e-3bd200026f80","block_type":"box","text":"CC,","page_number":184,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"7cb480e6-ef5a-4695-815b-7f28e53051d9","block_type":"box","text":"and C","page_number":184,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"5c7a91fb-5a62-49a4-abf5-daafa45ef71c","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":184,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"73ac3cc1-faa9-41dc-9e2b-5d212b2d9988","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":184,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"d8593ba7-debc-4f4f-9be4-83d2db91fd3d","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":184,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"676e3861-57b3-4348-ae7c-c8d65eec721c","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":184,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"cd03baf9-d550-4e3e-930b-88a5c5dc434a","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":184,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"61e8b4de-9c53-430c-b026-b4cf8ec09e5e","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":184,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"544ace48-40e9-484d-8951-ab5ea5d9464b","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":184,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"7a23355d-9040-4d13-bb19-acc547b3d643","block_type":"box","text":"on the obligation.","page_number":184,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"fae1a651-6be2-4799-b7fd-c9765eca8991","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":184,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"f42e580d-6dd9-4baa-b5d9-47d5a157ee07","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":184,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"d9e324a5-0756-4964-96fb-c73c58d9b65c","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":184,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"cbf6bf4e-5e8f-43c8-b615-6db9a4c7c5e3","block_type":"box","text":"financial commitments on the obligation.","page_number":184,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"2855020b-ba64-4168-bf08-48748db3f7d4","block_type":"box","text":"A-4","page_number":184,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"8db98bea-dad8-4cdf-916e-f0578bd8f0fd","block_type":"box","text":"NM1026U-5982643-184/241","page_number":184,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"62c1f461-fee2-4ca3-b8f6-665f4fa7b522","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":185,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"9c83a2c5-af26-4be2-8c2b-0f72f53fbc98","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":185,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"642d28ab-18ba-499b-8027-83f12225afee","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":185,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"57a3edcb-dc59-4144-aac6-f53a01dac9a2","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":185,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"83ec980c-9ebc-4195-b1bc-1eb312a864b4","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":185,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"24eea8b5-efd2-4936-8443-ce5d315e2a60","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":185,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"9915348b-b3c3-47c6-acde-ffab7c700e3d","block_type":"box","text":"anticipated time to default.","page_number":185,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"b792f039-507f-4616-bfa4-8b13e9d0861b","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":185,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"2aa82f61-28f7-40a4-9aa2-fc98f4440dfd","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":185,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"3510842d-c4e9-4b36-a7a1-e0af358a6f26","block_type":"box","text":"higher.","page_number":185,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"9146c240-0005-4e84-81d8-ca36dac51553","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":185,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"9839ec11-5a02-4c16-a3e0-c98bb53ce96b","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":185,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"4e19048d-e12e-4691-baf8-8d6e7ab76d1b","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":185,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"88a9e6a0-cb17-4689-920b-bf8887560f3e","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":185,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"dbdb1fae-ba2e-464a-a05b-21ffbe27b695","block_type":"box","text":"days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking of similar","page_number":185,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"62b60277-52c1-4d4e-bcd8-245ba21ec2e3","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":185,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"32566b1a-e43f-4bbd-94f2-9298b27ef084","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":185,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"2fda5638-63ba-4fbb-8947-6e4bcfd2dc3c","block_type":"box","text":"restructuring.","page_number":185,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"77be801d-631d-43bd-bbf8-71f49c1417bf","block_type":"box","text":"*Ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative","page_number":185,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"8d286b2c-f123-437d-90d2-db7e4b9bc4e8","block_type":"box","text":"standing within the rating categories.","page_number":185,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"85ab2ab2-cda2-43f3-8111-f4c8ce7ef7ff","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":185,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"ec42c207-691d-4026-ab94-dd21fd0deca3","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":185,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"ab5621df-4bf4-4a78-892f-3ce124f97d2a","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":185,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"1c2df1d0-179a-424a-83a0-3e32f2a0a408","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":185,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"a9e5a3f2-e312-4599-b9cf-f5117ddab0e7","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":185,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"16fcf3ce-a750-4f45-bc4d-ace58feb4f78","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":185,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"1451bbc3-e9b1-4f56-b175-807f58313b44","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":185,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"2ea4fd77-9cc6-4f46-8b5b-7b1f37fc620d","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":185,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"3500aa06-9f44-4809-a327-b0ae87db6fcc","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":185,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"23ef7588-9de5-48a2-b70e-525f7046c729","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":185,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"282bdbbc-1755-4a39-92de-632dbeadf881","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":185,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"4fefa229-7eaf-4896-91df-847a29f815ae","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":185,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"23a478c3-a033-49fb-a93f-6ec61e721b7f","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":185,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"8ced70c1-bfa1-4a24-ba52-a386e7a32c1d","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":185,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"136fbc14-f100-4c8b-a6ba-e6d06c13b576","block_type":"box","text":"financial commitments.","page_number":185,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"aaac4002-ea29-46ec-b4cb-136743a989d6","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":185,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"a593115f-e6ae-423a-a8d1-1c2acd013b30","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":185,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"fd1a0c69-a0f9-49e4-9263-2efb05f3fb5d","block_type":"box","text":"commitments on the obligation.","page_number":185,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"215c99ff-17c3-4b0b-bd15-da40d57276f2","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":185,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"ec560ac7-471e-4019-b86e-f58cbebff463","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":185,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"695b8a26-9615-4ac0-babc-27fdb1d35e2a","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":185,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"5bbd9c68-c31f-4667-8238-ec69bda71aa2","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":185,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"fccbc38c-3382-4d03-8b83-66c47066776d","block_type":"box","text":"business days. The ‘D’ rating also will be used upon the filing of a bankruptcy petition or the taking","page_number":185,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"eb5760d8-aeef-4d8a-815e-3c71ddafef1f","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":185,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"18181bd3-9a8a-4f70-8385-ab6b99e67c54","block_type":"box","text":"automatic stay provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed","page_number":185,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"ddd34099-2104-4aac-a6f5-dcbcbb6dde8b","block_type":"box","text":"debt restructuring.","page_number":185,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"6ea655f2-2325-4094-ba99-f6911e452425","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":185,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"c88a3719-e83d-487e-8525-ddefab5e33f0","block_type":"box","text":"An S&P U.S. municipal note rating reflects S&P’s opinion about the liquidity factors and market access risks","page_number":185,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"6853c7aa-167e-4cf3-b04d-528c3179e0d1","block_type":"box","text":"unique to the notes. Notes due in three years or less will likely receive a note rating. Notes with an original maturity","page_number":185,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"4d7fcfbf-0dd1-41dc-976b-9c25bb680a33","block_type":"box","text":"of more than three years will most likely receive a long-term debt rating. In determining which type of rating, if any, to","page_number":185,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"a8c17cf8-8780-4b23-8f56-592e960b01bd","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":185,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"45ad54a6-5d0d-4d27-a1b6-4697d6c9d52d","block_type":"box","text":"A-5","page_number":185,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"6b4d3244-9fc2-4184-8c88-1e8384cf369c","block_type":"box","text":"NM1026U-5982643-185/241","page_number":185,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"c21c8ab9-1e92-42ec-b6f6-0627e0de9927","block_type":"box","text":"•","page_number":186,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"3c46e050-0712-42c7-b9cb-9bb80e497968","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":186,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"e18d0943-3179-4323-be70-41a498dde45e","block_type":"box","text":"as a note; and","page_number":186,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"f21b2cfd-a872-447f-9f9e-c67572bcc9cb","block_type":"box","text":"•","page_number":186,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"b9540877-ea1b-43d3-a3cc-633a239bd1f3","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":186,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"f2b24c8e-8675-423b-a9ae-fff58fb9ee34","block_type":"box","text":"treated as a note.","page_number":186,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"b5822b98-60ac-42aa-ba7e-780b7c3f4b0e","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":186,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"65269cfa-5b40-4205-af9f-d2c0177775c6","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":186,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"94d6cb27-fdf4-4322-b63a-dd061ae8486d","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":186,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"62c67fa2-426f-4882-8d87-3eedfbd552d5","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":186,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"79ae9bf5-e263-4eb6-8748-de825cfe613a","block_type":"box","text":"economic changes over the term of the notes.","page_number":186,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"ecc25055-b699-45c7-9550-09be15eb6e62","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":186,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"bb5daf59-bb20-41ec-a868-0aa19f4e15d6","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":186,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"fcc13fe7-1065-4823-9219-958d72b72b7f","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":186,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"4d6570c1-e1d8-470f-9d8b-cde080661f1a","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":186,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"cf9120c2-390a-4f0e-b1a4-b10185cd33e3","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch’s”) Credit Ratings Scales","page_number":186,"box":{"x":69,"y":294,"width":455,"height":11}},{"id":"b7ab71d6-1921-4939-8a8d-1d6176240c11","block_type":"box","text":"Fitch Ratings publishes opinions on a variety of scales. The most common of these are credit ratings, but the","page_number":186,"box":{"x":102,"y":317,"width":778,"height":11}},{"id":"b90ace59-23b1-4e8d-8c39-39b503a3dc07","block_type":"box","text":"agency also publishes ratings, scores and other relative opinions relating to financial or operational strength. For","page_number":186,"box":{"x":69,"y":332,"width":804,"height":11}},{"id":"9e469975-4ad4-4f34-ba6d-877068cbc102","block_type":"box","text":"example, Fitch also provides specialized ratings of servicers of residential and commercial mor tgages, asset","page_number":186,"box":{"x":69,"y":347,"width":776,"height":11}},{"id":"aa84db1b-ec0d-427d-983e-ab7bbff8c323","block_type":"box","text":"managers and funds. In each case, users should refer to the definitions of each individual scale for guidance on the","page_number":186,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"337f98bb-ba9e-48eb-bbb1-3a7552ecabbb","block_type":"box","text":"dimensions of risk covered in each assessment.","page_number":186,"box":{"x":69,"y":377,"width":344,"height":9}},{"id":"1bc53376-951a-4600-99a1-0b37d866d79a","block_type":"box","text":"Fitch’s credit ratings relating to issuers are an opinion on the relative ability of an entity to meet financial","page_number":186,"box":{"x":102,"y":400,"width":747,"height":11}},{"id":"3d455a08-d141-4f66-8b25-4ea3e1b1e726","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":186,"box":{"x":69,"y":415,"width":782,"height":11}},{"id":"7f40fca3-df9c-4664-902e-0e9da9f1c4eb","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":186,"box":{"x":69,"y":430,"width":793,"height":11}},{"id":"fc7d4e17-2cd9-4aa6-9c5f-c8a058ff9321","block_type":"box","text":"Credit ratings are used by investors as indications of the likelihood of receiving the money owed to them in","page_number":186,"box":{"x":69,"y":445,"width":761,"height":12}},{"id":"88e00d80-e9d2-450f-b169-a6b3bcff6494","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":186,"box":{"x":69,"y":460,"width":766,"height":12}},{"id":"46d63428-feaf-489e-a04b-b5378c227afc","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":186,"box":{"x":69,"y":475,"width":827,"height":12}},{"id":"0452ccca-f479-4a29-b7ca-a11aec09c204","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":186,"box":{"x":69,"y":491,"width":779,"height":11}},{"id":"32c2b9d4-4e26-49ff-9a4a-f0eb65eadeed","block_type":"box","text":"receivables or other financial assets.","page_number":186,"box":{"x":69,"y":506,"width":262,"height":9}},{"id":"a65bade8-1140-4167-8781-d60b3296bd1e","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":186,"box":{"x":101,"y":529,"width":794,"height":11}},{"id":"fc051bfd-04f3-4485-b0d1-e785387cc252","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":186,"box":{"x":69,"y":544,"width":826,"height":11}},{"id":"9f5a469b-f5e9-45a4-9c05-140b0c31ffc8","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":186,"box":{"x":68,"y":559,"width":800,"height":11}},{"id":"a4fe1752-5ddb-4eb0-bf9c-0b774d20127e","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":186,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"575fe97d-47d0-4b1a-9d89-cf275b00b35c","block_type":"box","text":"while ratings in the speculative categories either signal a higher level of credit risk or that a default has already","page_number":186,"box":{"x":68,"y":589,"width":793,"height":11}},{"id":"12ff6dd2-5634-47e6-a7ce-afcb6f4a9a70","block_type":"box","text":"occurred.","page_number":186,"box":{"x":69,"y":604,"width":65,"height":9}},{"id":"0d97d5e3-1868-4a9e-863e-ed27c91cad83","block_type":"box","text":"For the convenience of investors, Fitch may also include issues relating to a rated issuer that are not and have","page_number":186,"box":{"x":102,"y":627,"width":788,"height":11}},{"id":"17cb63f8-93ab-419b-8985-cad7e62121f9","block_type":"box","text":"not been rated on its web page. Such issues are also denoted as ‘NR’.","page_number":186,"box":{"x":69,"y":642,"width":506,"height":11}},{"id":"a5029584-260d-4b4b-b84c-d6e2ebb80478","block_type":"box","text":"Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are","page_number":186,"box":{"x":102,"y":664,"width":797,"height":12}},{"id":"81e15430-34eb-402c-acf7-00ea7debb941","block_type":"box","text":"not predictive of a specific frequency of default or loss. For information about the historical per formance of ratings","page_number":186,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"fa837018-77ca-4b0c-a104-8dd86388130c","block_type":"box","text":"please refer to Fitch’s Ratings Transition and Default studies which detail the historical default rates and their","page_number":186,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"ee452611-9983-4a5b-b3b3-f440c83c5239","block_type":"box","text":"meaning. The European Securities and Markets Authority also maintains a central repository of historical default","page_number":186,"box":{"x":69,"y":710,"width":801,"height":11}},{"id":"c4be6a7a-03ce-4609-8340-44b4913dd37d","block_type":"box","text":"rates.","page_number":186,"box":{"x":69,"y":726,"width":39,"height":8}},{"id":"2a340218-12bd-4c14-9045-f457bc19ef07","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":186,"box":{"x":102,"y":748,"width":798,"height":11}},{"id":"18182dae-eb45-4246-aff5-d6cd1fcaad67","block_type":"box","text":"the risk of a market value loss on a rated security due to changes in interest rates, liquidity and other market","page_number":186,"box":{"x":68,"y":763,"width":780,"height":11}},{"id":"175c8cbd-1454-4087-a82f-9fc31fcf8d7f","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":186,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"b7a5af2f-dcaa-47b1-b67a-234af28b26f1","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":186,"box":{"x":69,"y":793,"width":531,"height":11}},{"id":"7f495bfa-5cee-4c2d-ae81-3c7594e138ac","block_type":"box","text":"Ratings nonetheless do not reflect market risk to the extent that they influence the size or other conditionality of","page_number":186,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"86405e67-f14a-4c0a-9f7d-4a6a9ba62355","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":186,"box":{"x":68,"y":831,"width":639,"height":11}},{"id":"45c7c529-e69f-424b-81fe-d6cb6d237e68","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":186,"box":{"x":102,"y":853,"width":799,"height":12}},{"id":"597c573b-3127-464f-88a0-61b93718adf9","block_type":"box","text":"to the likelihood of non-payment or default in accordance with the terms of that instrument’s documentation. In","page_number":186,"box":{"x":68,"y":869,"width":794,"height":11}},{"id":"d4b59c02-a2ec-453d-9030-955c9d686870","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":186,"box":{"x":70,"y":884,"width":420,"height":11}},{"id":"01022aa1-8c3a-4931-9754-1cf14402c79e","block_type":"box","text":"i.e.","page_number":186,"box":{"x":492,"y":884,"width":20,"height":9}},{"id":"cb5810b0-bcc8-45f1-9b8f-de09d844df89","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":186,"box":{"x":519,"y":884,"width":380,"height":11}},{"id":"ec845d82-8017-4807-874f-a426a8499f54","block_type":"box","text":"the obligation’s documentation).","page_number":186,"box":{"x":68,"y":899,"width":230,"height":11}},{"id":"7df7aaf7-a56b-452e-a0e2-d78fb4d34ec6","block_type":"box","text":"A-6","page_number":186,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"ad04016e-af7a-4591-bbef-a717be7d1721","block_type":"box","text":"NM1026U-5982643-186/241","page_number":186,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"1aff452a-9110-4be5-8dcc-9e2ea2f91e0f","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":187,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"7c9c41be-3183-4a46-ba72-9af9204202ae","block_type":"box","text":"issuance programs or for private ratings. In this case the rating is not published, but only provided to the issuer or its","page_number":187,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"9a4be626-8bee-41ae-a80c-403320f6a615","block_type":"box","text":"agents in the form of a rating letter.","page_number":187,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"f2d47cc4-f78c-4309-a2ee-e04947d57406","block_type":"box","text":"The primary credit rating scales may also be used to provide ratings for a more narrow scope, including interest","page_number":187,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"904dbb97-a904-4dde-a97d-72b7289f6e92","block_type":"box","text":"strips and return of principal or in other forms of opinions such as credit opinions or rating assessment services.","page_number":187,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"ecafd183-84c0-4bc2-8466-56b882ce06e0","block_type":"box","text":"Credit opinions are either a notch- or category-specific view using the primary rating scale and omit one or more","page_number":187,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"5cdf9352-46fd-4a04-b1c6-cd1cf7e11f19","block_type":"box","text":"characteristics of a full rating or meet them to a different standard. Credit opinions will be indicated using a lower","page_number":187,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"3cf42b8b-d50f-4bc2-859a-49ec4c849509","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":187,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"2abf6a12-4db2-47d8-a161-362d1aac259d","block_type":"box","text":"e.g.","page_number":187,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"18d978e8-a9ac-48d6-862b-8609b4cbe9de","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":187,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"31723c81-b0e3-4eda-b794-eca6131f52d4","block_type":"box","text":"opinions will be point-in-time typically but may be monitored if the analytical group believes information will be","page_number":187,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"c24d0f76-92d3-4a6a-87fe-a6ab1bc84a92","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":187,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"2ee96a49-58eb-4287-96da-91961c69aebd","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":187,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"d0219404-9f5f-4340-8074-3fe2247e6292","block_type":"box","text":"rating assessment services are point-in-time and are not monitored, they may have a directional watch or outlook","page_number":187,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"b8f65475-efa6-408e-8d5d-63d48265b315","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":187,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"10d01ec6-aee8-4e82-80a3-09b09972aeda","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":187,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"fd31db2b-0048-4a48-8eeb-159e040442a5","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":187,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"c6b5e7eb-9ba8-4cd8-aa92-5227a4b5dec0","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":187,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"9362e79c-9816-4d43-ae38-17ea330cfb53","block_type":"box","text":"default on that liability is also included in the rating assessment. This notably applies to covered bonds ratings, which","page_number":187,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"de918ca0-abe1-4eb9-91aa-5c03fa63bdb9","block_type":"box","text":"incorporate both an indication of the probability of default and of the recovery given a default of this debt instrument.","page_number":187,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"25a8bc91-f244-4c8b-9176-65f155abcc7f","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":187,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"d5a7e264-3751-4554-bb5c-be67be2cf25e","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":187,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"f154a112-4cb6-455b-b2aa-950436d20abd","block_type":"box","text":"Individual obligations can be assigned ratings higher, lower, or the same as that entity’s issuer rating or issuer","page_number":187,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"94bd0b9e-8bb9-4b50-b22c-83bbc7a6db7c","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":187,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"2d1ff813-b131-41cd-ad7b-8de8248e7401","block_type":"box","text":"Ratings.","page_number":187,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"8c696c97-ed6a-4cb8-ac81-3d2accd0eddf","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":187,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"b226e171-e5d3-4126-9508-347629862371","block_type":"box","text":"same as that entity’s issuer rating or IDR, except DIP obligation ratings that are not based off an IDR. At the lower","page_number":187,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"e8df02b4-7f06-4241-98cf-89253cc38500","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":187,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"a942ce57-8b41-41db-beb8-5838b470eed2","block_type":"box","text":"obligation ratings.","page_number":187,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"b6df646d-b908-407f-9216-a8c725f18f04","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":187,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"75d76490-91b6-4e4a-86d1-e1084eedb681","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned","page_number":187,"box":{"x":68,"y":533,"width":833,"height":12}},{"id":"60c681dc-cded-44a4-9f93-ed7713865341","block_type":"box","text":"only in cases of exceptionally strong capacity for payment of financial commitments. This capacity","page_number":187,"box":{"x":196,"y":549,"width":697,"height":11}},{"id":"48d23083-1f42-4bc0-9a12-a9ba36a62143","block_type":"box","text":"is highly unlikely to be adversely affected by foreseeable events.","page_number":187,"box":{"x":197,"y":564,"width":457,"height":11}},{"id":"91268934-3eac-4db6-a75c-33cc80d32949","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very","page_number":187,"box":{"x":68,"y":584,"width":829,"height":11}},{"id":"ed046cee-75a0-47eb-8cc3-6e40f8ffa9b7","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":187,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"bfb17d98-39c8-40c8-b099-e7275b85afb7","block_type":"box","text":"to foreseeable events.","page_number":187,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"89d16331-5bb4-47a5-87ca-18ee923c0847","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of","page_number":187,"box":{"x":68,"y":634,"width":819,"height":12}},{"id":"5a2ff5aa-f06c-4d49-93ec-83ffe48667c9","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":187,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"39997c65-3a55-487e-b6fb-aa98fb25eebb","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":187,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"a1e25fd3-ad50-4c04-99e1-d0d0aa4e12fa","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The","page_number":187,"box":{"x":70,"y":685,"width":805,"height":11}},{"id":"03d2eb38-537f-4a18-9297-4360c3407d4a","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":187,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"0b9b3c09-deed-4ade-af42-b17a155dfed4","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":187,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"0d2f983f-9fcc-4524-93a4-9470003f6100","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, par ticularly in the event of","page_number":187,"box":{"x":70,"y":735,"width":830,"height":11}},{"id":"2623f8ba-3d08-46e4-b955-7a55ed204bcf","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":187,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"7fe4dca6-824c-4fcd-9920-e2d0c9c6dc55","block_type":"box","text":"alternatives may be available to allow financial commitments to be met.","page_number":187,"box":{"x":196,"y":765,"width":511,"height":11}},{"id":"b1b08a9b-2afa-4284-986c-299589d7b3b8","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material credit risk is present.","page_number":187,"box":{"x":70,"y":786,"width":650,"height":11}},{"id":"38c72da0-a029-4531-be26-c7f9e718399d","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present.","page_number":187,"box":{"x":69,"y":806,"width":727,"height":11}},{"id":"544645d6-31f4-46e2-9374-d8c2458ae3d0","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk.","page_number":187,"box":{"x":69,"y":826,"width":712,"height":11}},{"id":"364cc3e4-f5da-461e-ab83-1491eb6fb6c7","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk.","page_number":187,"box":{"x":69,"y":846,"width":780,"height":11}},{"id":"ebab5f45-837c-43fc-946a-629c854b4987","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":187,"box":{"x":101,"y":866,"width":808,"height":11}},{"id":"f4f61c95-039c-462c-80b5-cc1b97fda56c","block_type":"box","text":"relative status within major rating categories.","page_number":187,"box":{"x":69,"y":881,"width":320,"height":11}},{"id":"f44baede-ade8-42e6-9a5c-2d42d6981b08","block_type":"box","text":"A-7","page_number":187,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"5f40e6ce-b1f8-4f62-b20f-faa88b60b5e8","block_type":"box","text":"NM1026U-5982643-187/241","page_number":187,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"5210da76-968b-47e1-b0e1-fe3f2cc75f7e","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":188,"box":{"x":102,"y":45,"width":761,"height":11}},{"id":"543f68df-288a-48d9-a2d7-f755eea93b3c","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":188,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"a179af73-0e5f-4d16-8128-5fe2a5f71f77","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":188,"box":{"x":69,"y":75,"width":289,"height":11}},{"id":"44f40291-87c1-4729-979a-ed080be3fe3a","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":188,"box":{"x":69,"y":105,"width":568,"height":11}},{"id":"1cb164f2-20c7-4957-b685-10ae3638e2ec","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":188,"box":{"x":101,"y":128,"width":806,"height":11}},{"id":"49346e26-c338-424e-ac7e-d350823d23d7","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":188,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"0da3913c-0b6c-4d16-a9ad-2ab942f7cf4b","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":188,"box":{"x":69,"y":158,"width":822,"height":11}},{"id":"401b6dc8-88d0-48e5-bac2-91a0f5a886a4","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":188,"box":{"x":69,"y":173,"width":827,"height":11}},{"id":"5d97e7b3-9831-4078-9135-45898e2a125a","block_type":"box","text":"13 months for corporate, sovereign, and structured obligations and up to 36 months for obligations in U.S. public","page_number":188,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"2dc1010d-0233-4419-8885-6631694f2a66","block_type":"box","text":"finance markets.","page_number":188,"box":{"x":68,"y":203,"width":118,"height":9}},{"id":"b4b49e15-6214-44b8-ba93-1193a938cdc6","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":188,"box":{"x":102,"y":226,"width":273,"height":11}},{"id":"86045762-a5f7-4715-a575-45372e15478f","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":188,"box":{"x":70,"y":254,"width":816,"height":11}},{"id":"b013a157-5c2c-4768-896c-73beb894f218","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":188,"box":{"x":196,"y":269,"width":692,"height":11}},{"id":"41c2279a-8441-4c6f-b54b-bf567b1261f6","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":188,"box":{"x":70,"y":289,"width":734,"height":11}},{"id":"b732ebc3-2a39-4b55-b669-1eb049a30151","block_type":"box","text":"commitments.","page_number":188,"box":{"x":196,"y":304,"width":100,"height":9}},{"id":"dd3541ad-ea43-46f0-9199-ae53357a65dc","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":188,"box":{"x":70,"y":324,"width":831,"height":11}},{"id":"7b3159e0-09e3-4ced-9ef5-5fd664b55895","block_type":"box","text":"adequate.","page_number":188,"box":{"x":196,"y":340,"width":70,"height":10}},{"id":"36e21dc0-6f8e-4ca2-a0c6-c706a5cc8c6e","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":188,"box":{"x":70,"y":360,"width":737,"height":11}},{"id":"a46f1a8e-74ee-4089-a21b-0cf9ca3a0bea","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":188,"box":{"x":196,"y":375,"width":641,"height":11}},{"id":"3bbbab53-62c1-456f-bfd0-e682261cfc2f","block_type":"box","text":"economic conditions.","page_number":188,"box":{"x":196,"y":390,"width":149,"height":9}},{"id":"affab824-648a-4381-b0ca-c5d6427aa68d","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":188,"box":{"x":69,"y":410,"width":535,"height":11}},{"id":"90f5e1cf-cc61-4fc4-b39a-3540e34dd82a","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":188,"box":{"x":70,"y":430,"width":749,"height":11}},{"id":"1cec447b-5f79-4f3f-9e9d-fce3b6646029","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":188,"box":{"x":196,"y":445,"width":714,"height":12}},{"id":"1cd8c95d-971b-4eae-92e6-292d802a3792","block_type":"box","text":"ratings only.","page_number":188,"box":{"x":197,"y":461,"width":83,"height":11}},{"id":"21d292ac-f990-4b30-a246-d74ce5057c7a","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a shor t-term","page_number":188,"box":{"x":70,"y":481,"width":761,"height":11}},{"id":"3157586e-87e9-4fba-8b14-796a54206425","block_type":"box","text":"obligation.","page_number":188,"box":{"x":196,"y":496,"width":72,"height":11}},{"id":"a9c0960f-57b5-4c5f-ae0f-1aba8e056a2e","block_type":"box","text":"A-8","page_number":188,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"62fc8eb0-b012-4d78-b78b-61645f92c394","block_type":"box","text":"NM1026U-5982643-188/241","page_number":188,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"8a0c04c9-ea6b-43ff-93c3-1157c98428b1","block_type":"box","text":"APPENDIX B","page_number":189,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"a623d3e8-e44d-468a-9aa3-79d449807787","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":189,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"47b13be5-6910-4fb3-a0c8-f52d8e332aa6","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":189,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"d1bf2aaa-1543-47f0-9485-c4c43694fd35","block_type":"box","text":"Effective Date: January 1, 2025","page_number":189,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"be8f16e6-99bb-4b69-a1c5-2563fa7c0c3c","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":189,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"e8e8656c-1f3d-46eb-8c6c-329fc22258e3","block_type":"box","text":"□","page_number":189,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"2aa98570-2532-446b-8869-eab72f019b68","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":189,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"f9914058-7c1c-42f3-bb36-531d21a3d2ca","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":189,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"0986bd88-b602-44de-9ff3-672c466dcec9","block_type":"box","text":"□","page_number":189,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"fcb3ae78-87fd-4aa2-af8e-0c9f1115432a","block_type":"box","text":"Money Market Funds","page_number":189,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"c461c4ba-5a81-4bf9-99f2-bd533f5c4667","block_type":"box","text":"□","page_number":189,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"f4851409-17e4-46aa-9e4b-3497af999957","block_type":"box","text":"Closed-End Funds","page_number":189,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"660d6508-1ff6-455e-96ac-50670c14f6f0","block_type":"box","text":"□","page_number":189,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"ffe0d9ff-b5ee-4006-ab05-de4fb9b800bf","block_type":"box","text":"Other","page_number":189,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"9a2e7905-66e6-4b89-9495-6c57c64c615f","block_type":"box","text":"Objective and Scope","page_number":189,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"0986ce8d-5752-46ca-a08b-9b98cb75b559","block_type":"box","text":"Set for th below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":189,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"db230fb3-e94a-426d-bd84-912a819db693","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":189,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"bd4479dd-acae-4295-a347-966e37e87af7","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":189,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"981b3d3a-3597-45fa-a220-fe6f2cfd6537","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":189,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"21d8510b-91b6-428c-a2d5-ab83b9c9796e","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":189,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"54bdbed9-8226-4010-bc6b-bca360ad6bb9","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":189,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"d0ea31c1-6e16-48a9-aa1c-b3268f5734c8","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":189,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"9a79ed9e-88fd-4870-9378-132560a65613","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":189,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"9846ba6e-ce1a-47b4-b103-cf72156c3d40","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":189,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"8c4d2376-4f45-497d-80db-99e721e23b21","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":189,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"0263e919-abd9-4053-b9d3-0f6315b1c62a","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":189,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"d5cfdd55-85bf-405d-abd9-b1b76e5576fe","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":189,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"85df08ce-ff0c-473d-ab40-7776e0a2b7cb","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":189,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"424bf49e-25a3-431f-8601-9dcc78d54098","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":189,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"ddb7d5c0-c534-489f-875b-9860c19f1512","block_type":"box","text":"Conflicts Management","page_number":189,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"1d05a2cc-a681-4163-84f2-0c3cbe0b1707","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":189,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"3db589d6-be6c-45fe-ba04-b0ee6eefd991","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":189,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"2ec0b074-5da2-4dd7-ae93-e6c61b2add74","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":189,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"2d0738e3-21f4-4fce-a4cc-f64ffdf7b39a","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":189,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"c315278a-78ba-426b-aca9-019e6c10637b","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":189,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"88d6a42d-de2b-424b-8930-0940a149efea","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":189,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"e24465b2-54a9-4ea8-98b8-62210a7e8ee2","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":189,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"72d61919-6a2a-47cf-8e9f-fc860908eb96","block_type":"box","text":"In cer tain instances, BAIS will engage an independent third-par ty voting service provider to make proxy","page_number":189,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"8f58ef87-0e2c-4ae1-ad0c-6dd2f05bf351","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":189,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"19df4e0f-a297-4d25-8b2a-e439beebba92","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":189,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"a832ecfa-af52-4bbf-8d39-b6a0225bfd88","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":189,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"2245a793-f1fc-4fbd-a819-da0249b8f5a5","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":189,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"398a82a0-c348-4288-8750-f5024f8a3c61","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":189,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"3b70c2d2-16ae-467b-8099-c8d479aa6988","block_type":"box","text":"connection with proxy voting.","page_number":189,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"aa014143-6faa-40d8-9049-62116bb9602b","block_type":"box","text":"Reports to the Board","page_number":189,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"1ba5abdd-c0a7-4d9f-afd0-db2280bb774e","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":189,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"65fb5f53-f172-4db2-a2f3-7942c0c5cef7","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":189,"box":{"x":102,"y":862,"width":794,"height":11}},{"id":"295fc6fe-f8d4-43bb-ad70-0afe80c3fa74","block_type":"box","text":"were in accordance with the Guidelines and (2) any material changes to the Guidelines, including material","page_number":189,"box":{"x":101,"y":877,"width":753,"height":11}},{"id":"d1af0f0d-40a7-4ea1-867a-a467b0694cc2","block_type":"box","text":"changes to conflicts management practices, that have not previously been repor ted.","page_number":189,"box":{"x":101,"y":892,"width":600,"height":11}},{"id":"c6be2993-5729-492f-8985-0298ec252e9e","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":189,"box":{"x":449,"y":45,"width":461,"height":11}},{"id":"622192c8-a62a-42d7-a658-74044acedf6a","block_type":"box","text":"BlackRock","page_number":189,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"ebe5d285-ca47-4118-8b51-eda312858ce3","block_type":"box","text":"Public Page 1 of 2","page_number":189,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"e9d638b3-d5e3-437a-8e74-4e4495d7ffaf","block_type":"box","text":"NM1026U-5982643-189/241","page_number":189,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"8132d1c8-e8bd-4d52-8591-9b7382f66d6b","block_type":"box","text":"Appendix A","page_number":190,"box":{"x":101,"y":75,"width":82,"height":11}},{"id":"23d75e4d-b39c-4204-b2ce-81c5a4309663","block_type":"box","text":"BlackRock U.S. Carbon Transition Readiness ETF","page_number":190,"box":{"x":135,"y":98,"width":347,"height":9}},{"id":"d71a3e51-e8ac-4de1-9d9e-7ec461cc6014","block_type":"box","text":"BlackRock World ex U.S. Carbon Transition Readiness ETF","page_number":190,"box":{"x":135,"y":120,"width":413,"height":9}},{"id":"bb0863bb-fc79-4fe1-947a-56d10b927029","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":190,"box":{"x":449,"y":45,"width":461,"height":11}},{"id":"be6ee7b2-40a4-4a1a-9d36-045e12eec662","block_type":"box","text":"BlackRock","page_number":190,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"6ca253d8-136b-47b1-8e27-d04924cf3fab","block_type":"box","text":"Public Page 2 of 2","page_number":190,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"9d63d13c-2e11-479e-a7a1-7502d79b1376","block_type":"box","text":"NM1026U-5982643-190/241","page_number":190,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"4dabd227-bba7-4c9e-9df5-c41b7869b127","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":334,"y":45,"width":311,"height":11}},{"id":"d8e02f73-389b-42bf-afd8-621f3d97b0a9","block_type":"box","text":"Global Engagement and Voting Guidelines","page_number":191,"box":{"x":337,"y":67,"width":304,"height":11}},{"id":"a8df37f7-85ad-4519-83b9-319079b09892","block_type":"box","text":"Effective as of January 2026","page_number":191,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"21fd6041-9210-4582-be05-aad83f078530","block_type":"box","text":"NM1026U-5982643-191/241","page_number":191,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"97020b0f-718a-4c68-9b5d-14e88acf6ab1","block_type":"box","text":"TABLE OF CONTENTS","page_number":192,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"c088721e-bef3-400a-9c6f-a42c9be99bcc","block_type":"box","text":"Page","page_number":192,"box":{"x":876,"y":65,"width":28,"height":9}},{"id":"f3043c68-d30c-41e5-8fc3-572aa8e24283","block_type":"box","text":"OVERVIEW","page_number":192,"box":{"x":74,"y":84,"width":79,"height":9}},{"id":"509c26f3-95f6-4642-bf96-729e50bf5024","block_type":"box","text":"....................................................................................... 3","page_number":192,"box":{"x":161,"y":84,"width":743,"height":9}},{"id":"43651901-2651-4666-907a-19557d4eb5a3","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":192,"box":{"x":74,"y":101,"width":235,"height":9}},{"id":"5758fe04-47a9-4fac-bba1-d862bf29bb26","block_type":"box","text":".................................................................... 4","page_number":192,"box":{"x":316,"y":101,"width":588,"height":9}},{"id":"675fbb5d-8db4-4989-b609-97ed8461b0d8","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":192,"box":{"x":73,"y":117,"width":424,"height":9}},{"id":"7e8b50a0-9722-4b29-bc0d-238855bf0e04","block_type":"box","text":"............................................. 4","page_number":192,"box":{"x":504,"y":117,"width":400,"height":9}},{"id":"8cd6f3db-ae3a-40f1-af45-e3033b602531","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":192,"box":{"x":74,"y":134,"width":451,"height":10}},{"id":"042c4ee1-f5b0-4213-9a0a-ec4a0f3fe2a3","block_type":"box","text":".......................................... 4","page_number":192,"box":{"x":528,"y":134,"width":376,"height":8}},{"id":"1a5c8fe3-6103-43dd-bd76-a1954a1e539c","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":192,"box":{"x":74,"y":150,"width":433,"height":9}},{"id":"a338917d-3862-4ae6-8a1c-6ae86979bc67","block_type":"box","text":"............................................ 5","page_number":192,"box":{"x":512,"y":150,"width":392,"height":9}},{"id":"798c7fa6-9a44-4c3f-9184-e4bba19b81aa","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":192,"box":{"x":74,"y":166,"width":178,"height":9}},{"id":"52ad5132-46f7-451e-ac6b-266b73f26f5a","block_type":"box","text":"........................................................................... 6","page_number":192,"box":{"x":259,"y":166,"width":645,"height":9}},{"id":"4efd44c9-f732-466b-8c2e-0d531f93f369","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":192,"box":{"x":74,"y":183,"width":207,"height":9}},{"id":"36ab3007-2100-40a3-9d5d-e5b4ab06e5d3","block_type":"box","text":"....................................................................... 8","page_number":192,"box":{"x":292,"y":183,"width":612,"height":9}},{"id":"f4ac15ae-2040-497e-8e2c-88bdf75d9cb9","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":192,"box":{"x":74,"y":199,"width":325,"height":9}},{"id":"4eccacaa-1598-4e2a-a7c2-31fb9b112798","block_type":"box","text":"......................................................... 9","page_number":192,"box":{"x":406,"y":199,"width":498,"height":9}},{"id":"d4f9489d-ede5-43bb-9124-1688cd185083","block_type":"box","text":"CAPITAL STRUCTURE","page_number":192,"box":{"x":74,"y":215,"width":156,"height":9}},{"id":"a9b781e6-f7e4-4600-b86f-848296c6011d","block_type":"box","text":".............................................................................. 9","page_number":192,"box":{"x":234,"y":215,"width":670,"height":9}},{"id":"bb1e3ab3-bf92-44fd-9b3a-8602bc382219","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":192,"box":{"x":73,"y":232,"width":315,"height":9}},{"id":"ec45fbb1-3ecc-437c-aa32-7c94b06a93e6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":192,"box":{"x":398,"y":232,"width":506,"height":9}},{"id":"27e4ebc3-2641-4fbc-8c60-6f3addb4e0bc","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":192,"box":{"x":74,"y":248,"width":430,"height":11}},{"id":"1b0fa301-38a5-43cf-a67f-3771cbff470d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":192,"box":{"x":512,"y":248,"width":392,"height":9}},{"id":"fdfd5f8b-965a-4405-8641-69066eb75447","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":192,"box":{"x":73,"y":265,"width":319,"height":8}},{"id":"73b13fe7-ad4a-4b50-a7b5-baff8af91b00","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11","page_number":192,"box":{"x":398,"y":265,"width":506,"height":8}},{"id":"b03340c1-1357-4594-9138-97e27b0d8948","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":192,"box":{"x":73,"y":281,"width":207,"height":9}},{"id":"b8d983be-e7e7-4409-afa9-f7e6180fcd5d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12","page_number":192,"box":{"x":283,"y":281,"width":621,"height":9}},{"id":"66f84c7b-789d-4fab-be46-8f0d1fcbe466","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":192,"box":{"x":74,"y":297,"width":259,"height":9}},{"id":"456b5584-b803-452c-97ec-b6c237a9c96a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12","page_number":192,"box":{"x":340,"y":297,"width":564,"height":9}},{"id":"f96b1850-cc52-483e-bf4b-8c03ec3704d7","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":192,"box":{"x":74,"y":314,"width":489,"height":9}},{"id":"aaa75f6d-b02d-44ac-975d-5b0aee13a73a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":192,"box":{"x":569,"y":314,"width":335,"height":8}},{"id":"a0715989-4d1a-42ce-975d-ced339f2ec1e","block_type":"box","text":"KEY STAKEHOLDERS","page_number":192,"box":{"x":74,"y":330,"width":151,"height":9}},{"id":"ac54cb40-e6e9-4c44-9393-652ff22a2579","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":192,"box":{"x":234,"y":330,"width":670,"height":9}},{"id":"830b34fe-60f9-45fc-954d-a38b3281d6c0","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":192,"box":{"x":74,"y":346,"width":448,"height":9}},{"id":"b3a17348-c297-48df-8eb5-257d4dd0a026","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":192,"box":{"x":528,"y":347,"width":376,"height":8}},{"id":"831fe3dd-234d-41ac-9463-e650ba91b0bd","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR","page_number":192,"box":{"x":73,"y":363,"width":771,"height":9}},{"id":"35359d86-af9a-486e-879e-e77a467fc6b1","block_type":"box","text":"NON-INDEX EQUITY INVESTMENT STRATEGIES","page_number":192,"box":{"x":74,"y":378,"width":339,"height":11}},{"id":"a4868f52-ed46-4931-97ab-e35297bc7a9c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16","page_number":192,"box":{"x":422,"y":378,"width":482,"height":9}},{"id":"06bb3e17-b311-42a3-aa72-ce6e322bead7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b2367d64-6279-4eaa-b8b7-a8173f995d91","block_type":"box","text":"Global Engagement and Voting Guidelines | 2","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"6d2c842a-a5de-41dc-949e-fbd660f9a92e","block_type":"box","text":"NM1026U-5982643-192/241","page_number":192,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"9b1ab48c-987f-4d51-8566-7928bde8baa9","block_type":"box","text":"OVERVIEW","page_number":193,"box":{"x":450,"y":45,"width":79,"height":9}},{"id":"f6588d6d-ca90-4745-8736-da1268bd6086","block_type":"box","text":"This document provides high level guidance on how BlackRock Active Investment Stewardship (BAIS) views","page_number":193,"box":{"x":101,"y":67,"width":760,"height":12}},{"id":"935f2672-a3e9-4014-8a57-6c9aacdb2126","block_type":"box","text":"corporate governance matters that are commonly put to a shareholder vote, or on which investors engage with","page_number":193,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"40dfa562-1ab4-4180-a242-cbeb14c1d52c","block_type":"box","text":"issuers.","page_number":193,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"94812226-e863-496d-94ad-2b61cc946f0f","block_type":"box","text":"1","page_number":193,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"c6f4f0ef-855c-4ffb-9ea0-200ffe6b89ac","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":193,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"a08f9a2d-cc8a-4f85-b50f-e5207b8ea189","block_type":"box","text":"2","page_number":193,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"a7436077-d0a6-4235-9708-4057c3b4efed","block_type":"box","text":", providing exper tise","page_number":193,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"373d7ce5-3c91-4a30-8d22-7c5423c015fd","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":193,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"9d5f7fe6-5e15-4a5a-ab0a-8c0fe00bebe2","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":193,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"2a81e1e9-b988-46b2-a93c-e9c7aacc105d","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":193,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"865c8610-6af9-4d80-95ae-9ea2f871383d","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":193,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"31da1f6f-abda-4ceb-a9e1-c2e4a8f9c2bc","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":193,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"1eaf71f5-b326-475e-a794-5c7d203426a6","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":193,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"d8539ba0-06a7-4f05-841d-e741e956cc8b","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":193,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"a12d56d6-7ac2-4ccc-8a51-6cb294001bb6","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":193,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"94f04b6b-72fb-4aa3-9900-6c4c658a8217","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":193,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"f54a65cd-e483-4af1-b86f-b9d159a3bef7","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":193,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"02d433ca-f163-4dc0-92ef-0a61df912fd5","block_type":"box","text":"1","page_number":193,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"0df85ef6-d32d-40ca-a8aa-2dda8a4a3e52","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":193,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"ea640158-f8f5-4a34-b076-2293b7e9802c","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":193,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"08ef222a-1f4f-4c57-bf46-45ca280a1df5","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":193,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"0d6b0728-8272-4644-b4f7-b4ecc9867d13","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":193,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"881d6538-34fd-4926-941f-b95c837342e6","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":193,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"7b4a341a-8c83-46eb-b5f5-6fcac0f5734f","block_type":"box","text":"2","page_number":193,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"cf5ca019-dd5a-46e9-8a58-e1750db824c6","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":193,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"16ead22c-5a29-44ce-89b4-23de981015a2","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":193,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"30126869-ee54-44e1-95db-ee6eb0cfe706","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":193,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"1c7a68d2-cb0d-4063-b757-a7968bd81dcc","block_type":"box","text":"policies.","page_number":193,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"12ae3446-48b0-4c5b-b823-32af3d3777fb","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"453a719c-d06b-4f8c-85cb-60c84b75402a","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b507ad4e-a7ca-4e86-9813-798de7bbe957","block_type":"box","text":"NM1026U-5982643-193/241","page_number":193,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"fb30e690-4957-4551-856d-9ab635d6ddff","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":194,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"75d026df-f60b-4cff-9462-2d4f6a85029a","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":194,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"06240c56-984d-4cc9-b24c-c300a7a019e8","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":194,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"8b529ca2-b461-4d44-91d4-42d762ae724c","block_type":"box","text":"As a fiduciary, BlackRock invests on clients’ behalf to help them meet their investment objectives. The firm does this","page_number":194,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"0ca45b56-deb7-42f7-be2f-30cb64b809cc","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":194,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"3d5d1384-b353-40d2-95e3-e1121e8d743e","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":194,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"15a6a563-cf2b-4a40-9ca7-a0d4bf26976f","block_type":"box","text":"this work with research, data and analytics.","page_number":194,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"85ad1a32-97bb-44ed-b6b4-3b8667a1b84b","block_type":"box","text":"At BlackRock, investment stewardship is core to our role as an asset manager and a fiduciary to our clients. As","page_number":194,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"46d192ed-8203-4f90-9bb7-130280f06ddf","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":194,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"66101d22-deec-4c06-b707-28536eaccb3d","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":194,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"bc45f518-8f62-4672-9481-17cf444c95fa","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":194,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"dbba0704-d41b-47bc-a498-a7a72ee05b88","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":194,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"40ce61d0-3208-4fb3-a4c8-28a83c3e6cc6","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":194,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"1a54c9a5-cb33-462f-8fb4-03e8d4fee23b","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":194,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"d4c9ec6d-6053-444e-ac64-3e4b66e482e5","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":194,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"0e4ba250-5b60-4c55-a3b1-06ef03ef46a9","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":194,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"a9c279f6-e618-49f0-8121-95be98720991","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":194,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"ec2f1aa9-c6ed-4e8b-ba5b-698ac1e5b8d2","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":194,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"e122c4c5-54f7-42ea-97d2-8fc441b53ece","block_type":"box","text":"shareholder meetings.","page_number":194,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"75cc673b-87c6-43e5-8acb-5f8906fab65b","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":194,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"e237d5f5-9d23-4a27-a8e7-25722b9494e5","block_type":"box","text":"investing.","page_number":194,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"8209e2af-d0f2-4e50-a3fd-cd829b69555e","block_type":"box","text":"3","page_number":194,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"5af4177e-161d-48b9-9b16-628d29b7acc9","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":194,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"0995172e-1a7f-4758-a4f2-ab9573d43213","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":194,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"8b72eb50-8499-45fe-a8be-b30b1855950d","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":194,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"638b7a76-7db4-4781-b2b9-863cef3c29fd","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":194,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"353c8c7c-2d3c-4cad-bbe3-b1dbf8c7a5f2","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":194,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"02ed8383-68c6-4c60-833c-8084cfda7e29","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":194,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"38d5ce1a-5849-481d-b752-41c157b2869e","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":194,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"6a5b1263-bdd4-4221-a700-7843a105406c","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":194,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"5b373de0-4c00-4acb-b8da-5ba1049aa736","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":194,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"f11180d0-9438-4e85-ab30-ada14b8fc035","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":194,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"1f0ebcb0-0809-458c-ab15-dd3754b972a1","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":194,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"c2f11ee3-1d78-46f9-bdf3-77a9ad8973f0","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":194,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"e45995d8-d5e1-4dfa-a88a-b67cb2fdeac7","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":194,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"729b067f-1951-43d1-a302-0e5f5743f985","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":194,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"70420b18-f20e-4764-b937-43b6a62fa284","block_type":"box","text":"management teams and board directors","page_number":194,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"995012f4-a9f2-44ee-a4d8-e0a51f62e642","block_type":"box","text":"4","page_number":194,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"4f4cfa9d-62ac-4336-9e0e-928d845cfcd8","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":194,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"acdff1b4-d602-4513-9c09-a1f876e67320","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":194,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"48380014-dcee-4113-b047-3a0dc331043b","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":194,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"598fe3f7-d05e-437d-9100-483b860aaf1e","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":194,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"f181266c-cc90-458d-a59d-220e23428856","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":194,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"d0ef80c3-1774-40be-9bf6-593af9800ded","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":194,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"da7c3d67-c020-4a97-a8bc-a9edc6452f82","block_type":"box","text":"to – direct a company’s strategy or its implementation. We look to companies to provide disclosures that explain how","page_number":194,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"e8d33f37-7f1e-4277-b46c-84bb3767d056","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":194,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"38dbf140-5c8f-4467-9d8b-b3f63f7ec5d0","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":194,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"8cf9e3fa-3674-47be-a3eb-1aed7a96b5f1","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":194,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"ac6b0f09-83ce-4875-bf3b-257a75770473","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":194,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"e7911c4a-157b-490d-acba-2a2446fcfac3","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":194,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"c8bd25ba-df0d-4c0f-8bfe-6fd445d225e1","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":194,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"da11071d-e16b-43fe-b463-f8953ffa18f8","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":194,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"62f4e5ed-7d97-4532-b9fd-1e8e16507667","block_type":"box","text":"3","page_number":194,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"c470c366-ffd2-4739-a304-71840729d70f","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":194,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"041e7cae-e929-4d42-b3cd-cd6b36356af0","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":194,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"c83b39db-9c2e-45e0-a013-bfd730f17645","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":194,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"f5861c14-4736-4518-b064-8cd04d942783","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":194,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"fa826a0e-6363-4da7-912b-47101bd481e1","block_type":"box","text":"4","page_number":194,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"a6e9b79a-8326-4c99-a6b3-3868db8155db","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":194,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"de948012-45a9-447d-b5e2-bcaef66a9f7d","block_type":"box","text":"boards and their members, where relevant.","page_number":194,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"39b04354-44f1-43c9-9961-bf30ba1d24b6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"3aaabad7-236e-4caf-b344-26b5b2da5397","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"aa600b1d-99a1-42eb-a144-db92a6b785d6","block_type":"box","text":"NM1026U-5982643-194/241","page_number":194,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"abd2f982-ccef-4dcd-98df-7a9f2b316cf7","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":195,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"312bba36-5546-4c3a-9bae-100c0d01525f","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":195,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"45d0f529-07fe-4897-82e2-8dcffc388071","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":195,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"eea894a6-c026-46b8-87ba-679d808bf5ba","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":195,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"4c83b280-0f55-4142-b546-03d82e59c66f","block_type":"box","text":"on a case-by-case basis, in the context of a company’s situation and the investment mandate we have from clients.","page_number":195,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"bea0958a-72c3-4b7d-b191-08e3eb422828","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":195,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"db316762-e2ee-4988-a4a5-9df05aa7f203","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":195,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"87aaa749-1fa2-463c-a074-2bf297d42b56","block_type":"box","text":"5","page_number":195,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"b7e68933-f211-4be4-b4d4-8d74aff440cf","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":195,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"a0754254-d466-432d-ae96-cf4dbde62d76","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":195,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"292d3dfa-4c79-41a4-b637-ec5f78d3c7de","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":195,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"d839ff3b-ae20-4b41-9f1e-46c0fd1c01b2","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":195,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"5953291d-10fc-48c8-ad5d-21cca409634d","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":195,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"9c8c2b41-8e8a-474a-b86a-97f5e44639be","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":195,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"99055016-17cf-40b0-92ab-4d1a4d7f302c","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":195,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"8350e354-4970-42df-9601-d1235d3610cf","block_type":"box","text":"5","page_number":195,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"6cd5545d-2715-4d5b-9461-a1037716ef98","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":195,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"cd40a7a6-0dae-49d3-bb5e-4e2b507c4459","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":195,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"06590cb0-3fc4-4dce-8c0d-5c3fcb212471","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":195,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"e851213a-6f24-4adb-8612-15a7e5243de9","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"35b0bc59-b08c-49a0-b403-417f88f61a5a","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9256563b-3e72-4382-ba58-5adc48ca1d9e","block_type":"box","text":"NM1026U-5982643-195/241","page_number":195,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"b306bdb7-c48d-456c-bfe3-3bbf512fcc51","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":196,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"8f17aa97-1712-4f8c-8a89-5e2650f51ef2","block_type":"box","text":"Roles and responsibilities","page_number":196,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"0a817b8c-49e9-481e-8629-3e6b1b220f15","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":196,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"9411f90c-b6f9-4f70-b97d-95fab797aaad","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":196,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"c85eacd7-0388-4467-9124-50b34deb99f7","block_type":"box","text":"6","page_number":196,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"7f79cfcd-9ecf-4e11-8a64-72e7f045624a","block_type":"box","text":"We look to the board of directors (hereafter the “board”) to have an oversight role in the establishment and","page_number":196,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"93716964-9b1e-4863-b6a8-438cea5ea6b0","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":196,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"51820dbe-093a-4113-9ff9-092b8ad14086","block_type":"box","text":"can better position a company to be resilient in the face of a changing business environment, help reduce the risks","page_number":196,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"6c103a09-b48f-4927-ae54-de567a2a9393","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":196,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"c0f0c25f-1555-4a5e-808b-c98004ecf4cd","block_type":"box","text":"per formance over time.","page_number":196,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"5410d1d4-f38d-4be6-863d-d99f560f7e30","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":196,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"57184e01-2d67-4f3b-8b4d-1a2992dc6902","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":196,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"7de309c5-e626-4f58-aaae-7fb76ec846dc","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":196,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"36fe46dc-0d62-4b8c-b77a-788f70de0258","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":196,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"cd846745-1da8-43ec-8b52-52c3772244f8","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":196,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"816fc9fe-a75b-4f8d-9c7f-902efd1ac919","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":196,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"0890f900-3d72-425e-91cc-cd9af8cd3bd1","block_type":"box","text":"Composition and effectiveness","page_number":196,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"0938751e-7f70-4c92-aa9c-07c9fdc63f44","block_type":"box","text":"Appointment process","page_number":196,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"1cfcb28f-0cd3-4f46-ac68-e3a9eb43011b","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":196,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"d622809f-97e5-401a-86ae-4cf51aeedf1b","block_type":"box","text":"board is composed of directors with the appropriate mix of skills and experience. Generally, the board or a sub","page_number":196,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"db6c8a69-c160-430d-90cd-aa60c8fdfdf8","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":196,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"483197eb-6e11-4f52-803f-5d9fe1e12d52","block_type":"box","text":"e.g.","page_number":196,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"bf82a3f0-17d8-4625-84c0-d6b04f82ef1e","block_type":"box","text":", sector, maturity, geographic","page_number":196,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"73a170d6-86b0-400a-92b6-e2f47daadadd","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":196,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"2444dd3c-c830-4e62-8b23-63af8ecc763c","block_type":"box","text":"e.g.","page_number":196,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"f5efcf45-a52e-49e8-9d3c-e566aa636d55","block_type":"box","text":", financial exper tise, industry track record). To","page_number":196,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"49dcf58d-11e5-46e3-8a15-b9bbd83b32f8","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":196,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"3767c378-0ee8-492e-bda7-87f689406bad","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":196,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"1dc9703b-31d9-49af-b2a5-f9d0d251b922","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":196,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"083a8233-10f5-4bbb-9197-53def37d3f9e","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":196,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"f64c54de-1a3b-4e84-875c-df8b46fc6a40","block_type":"box","text":"and local market requirements.","page_number":196,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"d6b3ef7e-816c-4f10-8819-d7a172e52792","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":196,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"969f94e8-1ae1-419c-be2c-5cb817ebac1f","block_type":"box","text":"composition in our engagements or voting but seek to understand how well placed a board is to act in investors’","page_number":196,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"7d5f365d-1f3e-46e3-bcaa-a977b818f69a","block_type":"box","text":"interests. We may vote against the election of the most senior independent director, or the chair of the relevant","page_number":196,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"2c82d3bc-81db-435b-ab11-ac7b012a862f","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":196,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"afeabb21-7465-44e7-9cdb-05855849eadf","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":196,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"32a27e41-4c6f-431e-a6c6-26e4a7dde1ef","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":196,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"5fd22ce4-8e5b-4910-b7af-6e007aede0ff","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":196,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"22c0c773-cb47-4fb6-8ee7-f367db43a2ea","block_type":"box","text":"Independence","page_number":196,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"b84ef47f-e93f-4972-84da-368e480e49c0","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":196,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"f21f50d7-fd3b-4f53-8f1b-d6b8cd4cdeae","block_type":"box","text":"e.g.","page_number":196,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"e3bc74ae-068d-4a48-ba90-096d1ee8e5ae","block_type":"box","text":", government or","page_number":196,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"24119f05-8c21-4491-b952-e7356773d7c2","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":196,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"399e1de7-2060-4b1d-8bb3-d15562eca650","block_type":"box","text":"BlackRock’s clients. We consider it good practice for at least half the directors to be independent and free from","page_number":196,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"a947bea9-331c-4efa-9ae9-fa503902c76d","block_type":"box","text":"conflicts of interest or undue influence.","page_number":196,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"1d7693dc-5f0c-4e23-8658-9a750a15528e","block_type":"box","text":"7","page_number":196,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"f3fa21c7-e6b3-46b0-9cc2-92f8f0aec385","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":196,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"6dd00463-aa52-4216-a266-e03e785ca910","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":196,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"4232f9ec-b43b-4cfa-9843-d268fe50b9ac","block_type":"box","text":"independence should meet those local requirements.","page_number":196,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"e13ee5e9-df36-4e57-839a-6930aa80bb22","block_type":"box","text":"We may vote against the election of non-independent directors if the board does not have a sufficient balance of","page_number":196,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"5554fef9-63a8-4d0d-a916-49eb0f4de538","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":196,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"d6b11596-0ce6-49e0-831d-13612fcb5c22","block_type":"box","text":"composition if this is a perennial issue.","page_number":196,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"a301ded8-4478-425d-819c-ea1824faab4b","block_type":"box","text":"6","page_number":196,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"7e676d10-5172-4e7a-8d55-7073304b9d6c","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":196,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"2a541fa9-a2ce-4ce0-a643-02be6d454a8b","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":196,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"2228f0b3-55f8-40a0-8d49-64c17bb2d257","block_type":"box","text":"7","page_number":196,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"c058c24f-bb2c-41a9-a3e9-d37d42cebdcb","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":196,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"8f48915c-5c80-4469-a06a-d1dc4630df12","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":196,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"f2eae523-92da-40d6-b890-17d7e69028c0","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":196,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"18608d14-5545-454c-9964-583c4748eca2","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":196,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"7f47dd1a-5b24-4a8c-8821-5812c834f0e6","block_type":"box","text":"of the company and shareholders.","page_number":196,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"38e0866f-162b-47c1-acfb-bd5413071853","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9ce141fe-7ada-4e01-a874-42300dc51c30","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"bc30412d-844a-4c60-bbf0-8eccbc31f8ba","block_type":"box","text":"NM1026U-5982643-196/241","page_number":196,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"a7c37bd7-bbb2-409f-9b52-d20751e7fd94","block_type":"box","text":"Independent board leadership","page_number":197,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"403abeab-9d1f-4cfb-be5b-96a307ad5db9","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":197,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"0919a0b9-b4b0-4d89-89b8-7eb3f1386113","block_type":"box","text":"board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in","page_number":197,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"c885bb5c-92fb-4999-a30a-63763de34049","block_type":"box","text":"the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for","page_number":197,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"3481eb94-30ab-4478-8bc2-25ee7178b30f","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":197,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"4f8d59fd-8524-4cbc-bb18-86bfdccf30a2","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":197,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"c159a347-f5d1-4f0d-bfd6-310a0f7991c1","block_type":"box","text":"ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or","page_number":197,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"d52dda7a-b489-4c22-9669-48b01c19b1b2","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":197,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"79e72bc5-6394-439e-a58f-de002b6e7e69","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":197,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"6e6c3efd-11bb-4736-8044-ec90d1e13adc","block_type":"box","text":"how it serves the interests of shareholders.","page_number":197,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"2329545b-8d27-4cc6-8342-583af916749b","block_type":"box","text":"We may vote against the election of the chair of the committee responsible for board composition if there is not","page_number":197,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"a69687fa-1786-454f-9bd5-f49ec45e9881","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":197,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"e4029c12-1707-4cf4-82db-e2e576ba4a35","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":197,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"39f15532-0b2d-44d8-a4e7-6064c18db382","block_type":"box","text":"Tenure and succession","page_number":197,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"241251db-49c9-4e05-a51d-6e905c092660","block_type":"box","text":"In our view, it is good practice for boards to establish the length of time a director would normally be expected to","page_number":197,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"179b9a82-c434-4108-a528-8c3feab08b51","block_type":"box","text":"serve, in line with market norms where those exist. We find it helpful when companies disclose their approach to","page_number":197,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"755890b7-8567-4f89-be72-7c64eb3505c6","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":197,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"b2b9c640-1bed-48e5-ac04-97ff9ebe0f26","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":197,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"ec5e5924-21f8-463a-be00-709c5cfd15eb","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":197,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"a703addc-22d1-43b5-b646-237d6b756fa3","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":197,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"2ac58e82-b8c4-4b92-96cd-663cc242509c","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":197,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"e9f3ee3b-baaf-4615-882e-fed76a44821e","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":197,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"bc3bde06-0b89-4fd0-aeb2-6fc25d9f9573","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":197,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"717c4b4d-4bbf-4fa0-95a3-47928a5475bb","block_type":"box","text":"practices, we may vote against the election of the chair of the committee responsible for board composition if a","page_number":197,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"bc125573-0115-4450-949c-0f24e04e8f58","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":197,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"def00ead-7b57-4218-899c-ee9eab5969cf","block_type":"box","text":"election of directors who have served for more years than is typical in markets with specific guidance, where the case","page_number":197,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"404802d9-3023-48a5-9348-f8fa48ce2493","block_type":"box","text":"for their continued service is not evident.","page_number":197,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"b926fe9a-fb21-4c3c-a4cc-00675e7bf3c1","block_type":"box","text":"Capacity","page_number":197,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"7c0103fb-ddac-41a3-a1d3-27d4b3620781","block_type":"box","text":"To be effective and engaged, directors need to have the time and energy to commit to the role. In our view, an","page_number":197,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"0c2772a9-14b2-4458-9cca-e1adc0bfb0f1","block_type":"box","text":"effective board will assess the ability of its members to maintain an appropriate focus on board matters and the","page_number":197,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"23d62f53-4bb6-4be5-ab6f-3c795e006f73","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":197,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"a3d9a79f-1b7e-4fac-a2c5-44f75dab2a1f","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":197,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"bfcd26b0-8349-4c4f-b8a0-4b02ab18c4c1","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":197,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"6fd8c856-edbd-4650-aed1-a13f893fd3ab","block_type":"box","text":"determinations across markets.","page_number":197,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"554f3c27-4a2d-4cba-9769-9884df6c72e4","block_type":"box","text":"We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfill","page_number":197,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"c0179919-846d-474a-b045-dd4c54575f93","block_type":"box","text":"their duties to the board and company.","page_number":197,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"9847ca0a-3ff9-4fb7-b22c-d1b2c8ebb2ec","block_type":"box","text":"Director elections","page_number":197,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"dd9a4d8f-ce1c-4fa3-ba5b-9f9cd9a92b77","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":197,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"6cde25db-d950-4335-a457-996990ac5e25","block_type":"box","text":"structure","page_number":197,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"371ba455-96ba-4f4c-825c-f7d68e8339e0","block_type":"box","text":"8","page_number":197,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"11e3c54e-e0f7-4931-978e-5c008f4f906d","block_type":"box","text":"may be justified by a company when it needs consistency and stability during a time of transition, or on the","page_number":197,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"931723a5-014e-4149-98ac-80737b587d20","block_type":"box","text":"basis of its business model (","page_number":197,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"00c91217-a126-48a2-a4fb-0174e54aa950","block_type":"box","text":"e.g.","page_number":197,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"5eea73ec-2955-40a5-b09f-e8d67f1ec773","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":197,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"69b78b29-383a-434e-9a73-1b810f1a3281","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":197,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"e6b17a1a-7280-4efd-8765-987b048cf7ff","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":197,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"d05dd0ef-d8d7-42c7-b5ad-f744a33e11a7","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":197,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"472f78e7-9596-4b4a-a75f-b8f495344e34","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":197,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"78eaebb9-0a9a-4e77-934d-affdee3aba8b","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":197,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"40d5cc05-5c36-47b8-9005-0f079785766a","block_type":"box","text":"shareholder meeting. Where a company’s practices differ, we look to the board to provide a detailed explanation as","page_number":197,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"498a2147-ff1e-4249-8748-c8518b416b90","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":197,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"0ef03aeb-ded6-4908-ab37-562ade6efb9c","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":197,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"f054f8fd-f69f-46ae-a460-54ebf8e3bc09","block_type":"box","text":"a simple majority vote standard for director elections. We may vote against all the directors standing for election as","page_number":197,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"fe3d7db6-e92f-4979-a9a0-77660609b2f5","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":197,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"c331809b-1acd-4588-a53b-880cdb113692","block_type":"box","text":"8","page_number":197,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"654b2c59-35e3-4dbf-b387-0ea4ecf881a9","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":197,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"b2894bbc-4dee-4d94-952f-3b23f2522830","block_type":"box","text":"directors stands for election in any one year.","page_number":197,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"9d234e6b-8169-47e6-a1fa-f31e66289753","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"dd29ee9e-f2d3-44af-9ee2-7d65edee0bba","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":197,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"81268c36-d35e-4c14-98a3-a5820b87fd29","block_type":"box","text":"NM1026U-5982643-197/241","page_number":197,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"18ec146c-d2d9-4339-88a0-737ef9429854","block_type":"box","text":"Committees","page_number":198,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"b4ebfdb6-b4de-446f-b437-e719bb26aa23","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":198,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"6f2e38c5-b638-498f-945b-26b709dd45f1","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":198,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"ad733bf1-64d7-483f-9ac7-be96b5e292a8","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":198,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"24a1dbdf-4e86-424e-b91a-07d723716cc8","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":198,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"c7c60cfe-e830-4f0b-934a-915ea6fcd927","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":198,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"63196a91-5322-41bd-8861-a94b12a9e397","block_type":"box","text":"matters are assigned either to the full board or to one of the committees. It is helpful to investor understanding when","page_number":198,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"2d913af6-1b10-4f61-92d2-5b0d24172528","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":198,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"5bf9b95e-efa7-4d09-8231-28dcb9f267fb","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":198,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"613ddd3e-5049-4f3a-9f74-eb9c21616a64","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"578ea0fb-7082-444b-9331-a191142462bf","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":198,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"4dee8b25-c47d-4381-b82c-640020c3f55a","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":198,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"0e81a5b4-a7fa-4fd6-91b3-a8ef705524a6","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":198,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"af64c77c-19b4-46d4-bbd6-12453ffc8835","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"4d430423-a2c0-46b1-bad9-7743b38a6abe","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":198,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"0b2d98c4-9427-4171-bda9-4670950dd036","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":198,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"a8defc17-064a-4659-bc42-4f80cbd8b44f","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":198,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"8204b49a-1672-4a86-9b2e-367ec9771ead","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":198,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"ef7fccfc-01c1-4be3-8379-4cea909491d6","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"94d97554-6beb-451d-b471-3b6508c1d031","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":198,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"096b9fa0-f1ed-4642-945b-b6697b952922","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":198,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"027a688c-2e83-4a28-aa04-ad6057eefd0b","block_type":"box","text":"firm-wide compensation policies.","page_number":198,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"97f627fc-6692-460d-8680-ab6e8cd5f9fe","block_type":"box","text":"We may vote against the election of the chair of the committee or other directors serving as committee members","page_number":198,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"83102fb1-cb1f-4242-9997-dd5cd7c85a7f","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":198,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"0c561672-3bf1-46d7-9ef5-41cdada001c3","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":198,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"393b0f65-129a-4e68-b12c-524cc8b695f9","block_type":"box","text":"Board and director evaluation","page_number":198,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"71248909-101f-4ae6-b4a3-0faef303276f","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":198,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"da490795-e673-4349-9392-f2cca1eaec67","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":198,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"5cc178f3-20b1-482b-8d78-221cb1ef77f9","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":198,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"b3639770-1ed7-4411-9895-69b8563690d6","block_type":"box","text":"disclose their approach to and the objectives of evaluations, including any changes made to the board’s approach as","page_number":198,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"4887545a-fbf7-48a5-9a54-0dfe9600e777","block_type":"box","text":"a result.","page_number":198,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"1bdb6072-5c14-4468-a212-1ecbdb56172c","block_type":"box","text":"Access to independent advice","page_number":198,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"60749ea3-57d2-4a64-8067-cbb90fddc185","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":198,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"7b880a6b-a0a0-4096-974e-5c0c318efffc","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":198,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"616de690-9b2c-40da-995f-c1982fec0b6f","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":198,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"3541bb90-fbff-44a2-a203-d9c50f4bb326","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":198,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"f87e2cfb-9d3f-4af9-b2b1-739ac1ea7ece","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":198,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"c7606b6f-a960-447e-98ac-31f5568f2669","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":198,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"b3858936-f456-4a2d-9d73-9589536cf9f3","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":198,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"9f87ff60-3f8c-4daa-a174-472a56c8aeba","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":198,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"4ce7501f-c7a8-414c-a100-9a44c9451b52","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":198,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"8e9faaca-3e89-4c91-b7b0-e48e6e9990c1","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":198,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"ea53731e-d14d-4df5-8e13-7684b15b3d03","block_type":"box","text":"per formance.","page_number":198,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"3f2eddda-7521-48a4-bd9a-947bdc96ab65","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":198,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"8bf6fed0-afc0-4cbd-81e0-35fa06987dca","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":198,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"d9d98565-2dbe-406e-84a7-b07c6019ae19","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":198,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"f9c55471-0d57-4c48-a060-597e1e091479","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":198,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"771430ed-2b55-4671-af87-5baa58ac1c6c","block_type":"box","text":"to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to","page_number":198,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"65a03976-9ef1-40f6-8298-3552e9ea04e1","block_type":"box","text":"recruit and motivate.","page_number":198,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"02cff85f-1a95-426a-9098-b917233af3c6","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":198,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"12754169-1010-4581-8bb5-c2cd82b3501c","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":198,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"dbfb66b9-b947-48ce-ba56-f976b5f0e155","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":198,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"284475b4-46e2-450e-b6fd-b71cf45d37f1","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":198,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"a5f5cc89-3d90-42d0-b689-7df0f5cd4ab5","block_type":"box","text":"arrangements include:","page_number":198,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"37917e65-9674-43d9-9bdf-e221b2ff1e3c","block_type":"box","text":"•","page_number":198,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"97fa8d0f-6df1-470b-be83-02ba6feabb2d","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":198,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"d699a1a0-3cd9-4ae0-a4dd-71cf7ddce147","block_type":"box","text":"the company’s size, sector and market.","page_number":198,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"413ab0bf-d755-46db-b3ef-e67e35002797","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"20a3434b-f68b-43f1-9dc1-6e07c4a1a174","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":198,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"ea3b7263-6adb-4ca9-b1e9-4d3d06433023","block_type":"box","text":"NM1026U-5982643-198/241","page_number":198,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"9cb81d36-074e-4f0a-9162-74c7feb0984e","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"38308cd0-0a5e-401b-86db-2a7b081a692a","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":199,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"de22349b-39c3-49ea-a384-e68da0ca04a8","block_type":"box","text":"strategic objectives.","page_number":199,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"5d84c425-7383-4f97-b395-4c8be37ab096","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"8100d33c-0b8d-4851-b767-c2cd3e7f3731","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":199,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"1f5b6f7d-da5f-4cff-9ad9-38ee9b9d0b1a","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"2274adf8-5ab7-4940-bd47-ba6cb6e19c6a","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":199,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"b870145d-95d8-404c-a7ad-cd0e120e07b2","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":199,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"668d4cc7-9775-4cbc-976b-f70076042be6","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"7c000e1b-33eb-4a33-9985-2cbeadf68169","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":199,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"9d5f3583-e61f-43bb-9e9e-ca6d71f3752f","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"47b14920-1a0c-43e3-bc3d-72de648d7713","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":199,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"ad63ad68-edd8-47ce-b44c-0f2c7ca28470","block_type":"box","text":"transparently.","page_number":199,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"7f008318-de60-47ac-91f7-e78d8a515b3a","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"470fe306-b38e-45c6-9c36-2df55513d4e9","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":199,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"65ca091e-0835-45bc-86fe-fd312fd67e51","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":199,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"4fd369ab-4501-4de9-bab7-dce32e80b474","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"b6308ac6-4012-4b65-bcf7-33c9a8f7b3e0","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":199,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"d3fb6f7c-fb3a-4c78-8700-d4cd89966a5b","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"b64ad22c-2627-402e-810e-4d1db5a38f46","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":199,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"fee381bd-79fe-403d-8d21-be99e00f1090","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":199,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"be292e43-4c5b-48c1-8e96-5badda7d571b","block_type":"box","text":"misconduct.","page_number":199,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"16679b7e-cbb5-4358-ad12-75f5126f3853","block_type":"box","text":"•","page_number":199,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"820ad4cf-2b48-4261-81cf-a6c09604b133","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":199,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"74f153dd-e361-4660-bc8d-de2fdb6c0395","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":199,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"d8cc5c22-681c-43a6-85d2-c47a0850d4b2","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":199,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"f992fdf4-afb4-46e4-b35a-2e9dc972b05f","block_type":"box","text":"and our clients’ financial interests. When there is not an alternative, or where there have been multi-year issues with","page_number":199,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"3baa1b9c-4932-4f3e-b97c-8d4632084a77","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":199,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"26c1c495-781b-45a5-8219-2d486225493b","block_type":"box","text":"committee, or the most senior independent director.","page_number":199,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"6b0e346a-b13d-4258-931a-a0bdcc885cef","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":199,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"d0638cc8-5bcd-4b7a-89c1-7a48bfac8edd","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":199,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"73bafb88-999a-4f0d-8e9b-849d0c7da336","block_type":"box","text":"the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We","page_number":199,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"947e0fcc-a042-4406-8423-a51c1791860a","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":199,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"73984813-ab4c-493e-97f8-27b4e17e3213","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":199,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"50d5c783-427f-4665-8a47-749f573f438c","block_type":"box","text":"CAPITAL STRUCTURE","page_number":199,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"5acf2352-975c-4662-af3b-dcfdd20eae4d","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":199,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"fc4c26b2-50d9-4c2c-b2fb-4043ee4b7e2d","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":199,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"1696687d-bdf3-4230-b2c2-bf09470c57bb","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":199,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"9abc4a40-3a28-44c7-922a-aee1b496eb5b","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":199,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"5d1d08a1-133d-4019-847f-54dfcbbb8a96","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":199,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"f916fc18-9ef6-4fb0-981f-ac07678e9122","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":199,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"e00803dc-da68-4331-9247-f4cb0640eace","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":199,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"c6199429-4ad7-4ef9-a1d8-3e222ca58b46","block_type":"box","text":"Share issuance","page_number":199,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"6a189d74-686b-463f-b5fa-ffbcaa4a6304","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":199,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"efc59e3a-888a-4b10-a0a8-b07fcce1c819","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":199,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"e7388a58-7dec-46db-89f3-780580ce4416","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":199,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"93ab9168-e087-43aa-ac54-7730c97c0085","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":199,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"fa8adc16-6c11-4d9d-b355-266facb57ebe","block_type":"box","text":"market environment.","page_number":199,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"3bca14de-7769-4859-bc7f-ebb9a2fb9867","block_type":"box","text":"Share buybacks","page_number":199,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"1f0d86ee-a47f-47ce-8183-49027544ae03","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":199,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"3a0b1dc7-aafc-4c2b-8234-aa7b6ee75033","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":199,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"ac6c89c6-738a-4356-ae35-a485fd98baee","block_type":"box","text":"the company and returning cash to investors. We also take into consideration the effect of a buyback program on the","page_number":199,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"57a938b5-f886-41fc-a497-c22905a95287","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":199,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"7beaa94b-2875-436a-8d13-1cdce4a15ed8","block_type":"box","text":"relative to market price. We consider it good practice for companies to seek regular approval of these authorities to","page_number":199,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"d5dc3e75-8655-46b4-b810-dbeb6823150e","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":199,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"f69fc0ab-40a7-4dc0-8985-a5363d8d2a34","block_type":"box","text":"of the company and the market environment.","page_number":199,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"620a02fe-9558-4972-a58b-ac88996186e2","block_type":"box","text":"Dividends","page_number":199,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"487f6cdd-3883-4a54-8337-3c87c65588e5","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":199,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"4d139e84-8134-4084-99f2-274f3d7706c7","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":199,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"9b8247e1-8448-469a-8388-0845ee816589","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"de258ff9-d73c-4811-86fe-61f929b738bd","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":199,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b7b226af-f3bd-4199-9698-6fafe657f0b4","block_type":"box","text":"NM1026U-5982643-199/241","page_number":199,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"2f1a40db-4339-4b29-9c3e-c1dce09197b8","block_type":"box","text":"Differentiated voting rights","page_number":200,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"cfb52a74-8c28-4877-9ad8-7b92fe11bec2","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":200,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"13721803-55ec-40ff-abec-8e9afa9d14c2","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":200,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"9616474d-df02-4436-b6d3-d19ef988f4ac","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":200,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"4ca77b5f-bb32-4258-b99f-b92eba406b42","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":200,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"ef92b209-c673-4ee5-b6aa-d2cadfe94059","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":200,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"4f941002-30f3-4c08-b6f4-f3c6deb7f8e1","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":200,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"fab9b75e-31b7-4607-8e04-3a939a60b6b2","block_type":"box","text":"analyses of proposals.","page_number":200,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"cb6359db-2de8-4944-a333-2fc3063c394b","block_type":"box","text":"Mergers and acquisitions","page_number":200,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"cb20d873-c41a-40e6-88fd-4072061272e8","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":200,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"285e7c84-bd3c-44d4-8525-bda8bf6bfcee","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":200,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"a2adaf03-841b-490c-ad31-f18fe12b41dc","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":200,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"5daae32e-548c-4ced-a2ef-e2eef40fc641","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":200,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"06add54e-50d2-4f95-9daa-4dc939b5c4e6","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":200,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"8af9d9d3-2818-45ee-87c3-4da74f999aea","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":200,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"0166ba5f-b160-4998-86a9-205b8bbdd739","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":200,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"4011fe21-47e0-407d-9b45-83bc1c555f7a","block_type":"box","text":"Anti-takeover defenses","page_number":200,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"ca1a1506-afb6-4c5e-9d72-c29ee9647987","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":200,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"63c87700-7257-4a7d-a10d-8d34ea5609de","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":200,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"69b343f4-de7c-4f78-b984-bb5752016918","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":200,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"b3c5c662-4ee8-4238-a75d-63dfb2fb3626","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":200,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"8ded8632-9a63-453e-bc2b-436b364aa8a5","block_type":"box","text":"case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other","page_number":200,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"9ef8ab0f-84c6-4fc9-816d-0a84b0d7beb4","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":200,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"ed29da85-2582-48e1-8059-3c66e5a4cfa8","block_type":"box","text":"be closely monitored by the independent members of the board. We consider it good practice for companies to put to","page_number":200,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"7143cc64-56da-493d-bef0-fee630246655","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":200,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"c57de18b-847b-4ce8-a3d3-921bf5712626","block_type":"box","text":"Shareholder activism","page_number":200,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"89792d6d-f5d9-4687-b67e-553714d0421a","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":200,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"22b036e7-8445-4675-88d6-ae61642fd63e","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":200,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"6390390e-1e5e-4741-a083-29997dee4f59","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":200,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"fe44cbbe-6934-4838-bb36-b2486c5bac22","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":200,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"d55b7da8-2da8-4b3a-85b5-84b729f96f9e","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":200,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"48675a8b-25ba-4968-bc7b-84f39bdfb4d0","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":200,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"b9fa0d22-54ac-4104-b59c-966ef734eec0","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":200,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"67330e53-7227-451e-9cd5-ce20aef239e2","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":200,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"b412750a-05d6-4461-b6b5-e1ff947b4efe","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":200,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"4de4ba62-02e4-4e87-9c40-fb54ced3cba0","block_type":"box","text":"protecting shareholders’ interests.","page_number":200,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"2991ff5b-f303-47fd-a85d-1601d19e4cac","block_type":"box","text":"Significant shareholders and related party transactions","page_number":200,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"730b0ab9-e974-4957-bc52-464f097ff929","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":200,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"08264e13-5a2d-4a35-b07f-43b1938d8895","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":200,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"bb5069c8-1587-44bd-97f5-3c9e960e4e87","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":200,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"29952818-3778-42a7-9bd8-8c1b2d53b7dd","block_type":"box","text":"affiliated with the public company, to be disclosed in detail and conducted on terms similar to what would objectively","page_number":200,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"ccd27379-abfe-42a8-81ee-e620c779cff9","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":200,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"02c1654f-5eb6-4feb-9e1b-ba25f5fe3b45","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":200,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"6a503e79-7ce7-43df-9e07-9465e21225d6","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":200,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"f78126f0-1f6c-461b-b00b-51f3e02c062d","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":200,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"06411b91-4c30-4621-807f-036f2824f885","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":200,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"e79c284d-439e-4b76-8ab7-76a46622aaac","block_type":"box","text":"potential for the company to create shareholder value over time. We consider it good practice for the board to","page_number":200,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"74488b93-a58b-4145-b83f-53675c382f18","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":200,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"2f38da58-c0b0-48c6-8d5e-e04a4ba47bb8","block_type":"box","text":"audit.","page_number":200,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"3ad1b583-036e-4e5c-a038-b1bbf2020799","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":200,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"cf468dfa-0f9c-4af3-8573-efb51fdc6709","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":200,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"10dc4f8c-01b4-4cc3-ab99-56a1d0e2b783","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":200,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"fc4b28a6-4617-4c59-8dc4-4a3ae5666018","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"af5e3337-eb39-465a-9256-1d8a96f7c0b2","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"9b38287d-4dd3-4f7d-b762-bb511872b55f","block_type":"box","text":"NM1026U-5982643-200/241","page_number":200,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f72ca6e0-0ba1-40b0-b18a-dfadbc80a0d3","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":201,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"822b4582-1a29-44f8-8297-70240ccfe145","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":201,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"a1a3ad38-4ad7-4e75-994b-e8ce5beacf5d","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":201,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"c7157a1f-0654-44a6-8478-4d25f5d41c05","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":201,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"76d8a6d1-e0b6-4500-8c26-b409bc1a50f9","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":201,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"636f3bed-b3fe-4f56-8988-1a8ac42f66de","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":201,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"98ab0985-8169-4f3f-8753-13c2afe0ca48","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":201,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"d98f990b-1771-4a6f-88ec-81ec86cf2ce9","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":201,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"086eadfb-524c-49c7-9f3f-f8e8efbcc14b","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":201,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"7cf84215-1929-4106-bcca-32002f3eea14","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":201,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"4f624861-227c-4d76-b7af-5df5399b64c0","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":201,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"a5a1089f-6532-4db6-94c3-c20248c738a5","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":201,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"a84bc55d-b929-4613-8a64-45f2b8149a8f","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":201,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"a6632e1a-9c71-4859-a701-8805c3d6a2af","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":201,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"9062e479-9e2d-45e9-9a6f-642aee528d68","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":201,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"e442008e-26c9-49b5-b18d-b5e53a252c16","block_type":"box","text":"9","page_number":201,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"e515d143-73b0-44bb-8c38-5c2b3ee8669e","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":201,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"931dfcab-fb92-4db7-ba21-260bd7275f0a","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":201,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"64d9f47b-de63-454e-99a6-1d0e0af3e426","block_type":"box","text":"standards specified by policy makers.","page_number":201,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"19ed5288-bbf0-4c18-b13f-89caacf95b40","block_type":"box","text":"10","page_number":201,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"d1dddb1a-fbc0-4892-bb40-f80d230a2a06","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":201,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"330b752d-6c40-406f-89b2-da622a1b6d67","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":201,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"ddab0a5d-ec98-425f-8f70-e77c475f573e","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":201,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"7f367fdf-2eec-4dc7-904d-3ecb41cc40f8","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":201,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"dd38a0f7-663f-435d-a7b7-f45b7de919d0","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":201,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"39320936-1d1b-4cbe-b630-2a2e691ab2c7","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":201,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"878aab28-fae9-47d6-803c-901c0fa7dfe3","block_type":"box","text":"well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time","page_number":201,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"93ea217a-fee2-4f81-99b0-0411c61ff42b","block_type":"box","text":"and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit","page_number":201,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"123e3a42-373d-4d61-b5a2-ca473638c8b2","block_type":"box","text":"consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the","page_number":201,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"208f58b8-803f-4b19-a6f1-fda5ab8477fd","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":201,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"5fcecdda-7503-43c9-b799-4c9bd48e459f","block_type":"box","text":"remained independent.","page_number":201,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"6dccb1b0-4eab-4110-a82d-638df1ee3ace","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":201,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"ce65e800-b435-440d-bc8f-3e0776d46a68","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":201,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"b32fdff9-c494-4fb6-ad66-caeb13dc804f","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":201,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"85fe19a8-be3e-4f11-8119-3151147262d3","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":201,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"a1a87676-460c-4a62-8409-0118f5a02bdd","block_type":"box","text":"audit fee if we are concerned about the auditor’s independence, the quality of the audit, or there are material","page_number":201,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"5f520644-7877-4198-8812-6384d332c83f","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":201,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"57003e92-c843-4618-bdeb-c1eaa615de81","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":201,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"6a29a486-f43f-48e6-a9fa-bae9b42df797","block_type":"box","text":"General shareholder meetings","page_number":201,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"a1551e17-603d-48c7-9994-8885051df60d","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":201,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"ee27762f-1318-4deb-a9f3-8c1d29fa335d","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":201,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"0157fab4-e2af-4740-b360-d43c124d3d80","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":201,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"4be78852-ace6-460b-9120-e20bf7a14dc9","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":201,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"517ff086-8114-4195-a47f-10d5019e6f72","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":201,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"8068c861-ffc2-4c60-839c-0a3856c8e1a3","block_type":"box","text":"an in-person meeting.","page_number":201,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"7c0ec60a-c458-4172-8690-875f21b6386b","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":201,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"420e79b3-cfb7-42d4-87ae-968e066d1762","block_type":"box","text":"provided in a timely manner or do not provide sufficient information for us to make an informed voting decision. We","page_number":201,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"4844f178-d709-4fb6-8fb5-4166bdd8e0a9","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":201,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"40021006-9447-4bf9-9d15-0a1995883fd1","block_type":"box","text":"par ticipation.","page_number":201,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"2b222e1f-74f5-4127-be78-d60eb530ad7e","block_type":"box","text":"9","page_number":201,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"264dedf8-c5fd-4f0a-ae60-e26eaea0b208","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":201,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"7ccb28e9-86ce-4285-a367-e24155aaa529","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":201,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"59a411bf-ff67-4d7f-8561-a97764344ca7","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":201,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"7fbfb164-ad8e-4b3d-94cd-9765b963f187","block_type":"box","text":"Disclosures.”","page_number":201,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"5ac16d46-ce92-45be-aa34-b0c8aab50c5a","block_type":"box","text":"10","page_number":201,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"f5264aa3-b0e1-4d6d-9387-eece7a2e14ea","block_type":"box","text":"See, for examples, https://www.ifrs.org/news-and-events/news/2025/06/ifrs-foundation-publishes-jurisdictional- profiles\r\nissbstandards/ and https//financeeceropae/capitalmarketsnionandfinancialmarkets/compan","page_number":201,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"3fbbd1bd-6e5f-43ae-a308-6b914e7c7a8d","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":201,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"58f8398b-407c-43a0-8ad4-9887684c2cb1","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":201,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"f45d2d74-9915-4f90-8145-712f6658b4cd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8a5d0bef-2f0b-4682-b559-a48aa3f99a7a","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"e8529bfc-86c4-461c-bd8c-b85100406c85","block_type":"box","text":"NM1026U-5982643-201/241","page_number":201,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"016868eb-23ed-489b-93f3-38c572ff83bb","block_type":"box","text":"Bylaw amendments","page_number":202,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"bfbb5c0f-2032-497b-83f2-be76eb94d447","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":202,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"3c082643-649b-4c23-802b-b20e54ef8605","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":202,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"41645fd9-071c-4ee5-ae13-4c09dd5d8df8","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":202,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"8b5ee3b1-ee01-4b4c-a08d-09c7c6767d07","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":202,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"a7867f47-4259-4228-8635-4778f95badf0","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":202,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"66fc5106-a729-408c-b925-9f94c53c89e5","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":202,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"5d37d38e-974a-4b77-8cff-0e3308b89b1c","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":202,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"4536db2e-044a-491c-934f-dc4ccb4c0ba8","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":202,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"9f39193b-1baa-4707-951d-b23873f75a95","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":202,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"d40685f7-d707-4f69-a96d-31535094888e","block_type":"box","text":"group, with a meaningful shareholding, the right to nominate directors to the company’s board. The threshold for this","page_number":202,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"d7175740-7492-499c-93db-f7ea6f635f62","block_type":"box","text":"right should be set so that shareholders can exercise it without being unduly disruptive to the board’s own","page_number":202,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"b9ecf945-2f6e-4eea-b1e7-470f99d94b9e","block_type":"box","text":"nomination process.","page_number":202,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"e3c1a708-dd3b-41df-9e2d-8911d48a0e1f","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":202,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"eac5f936-8d9e-41ab-b462-dadc7862bc65","block_type":"box","text":"We may vote for a shareholder proposal seeking the addition of either of these provisions to a company’s bylaws.","page_number":202,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"271e9bf3-0861-4b7f-bea3-5bbc3f138260","block_type":"box","text":"Change of domicile","page_number":202,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"100baa50-16bd-4e9a-91e7-1e29076d441f","block_type":"box","text":"We generally defer to management on proposals to change a company’s domicile as long as the rationale for","page_number":202,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"15f10243-9493-40d4-8734-f8bd86d831ff","block_type":"box","text":"doing so is consistent with the company’s long-term strategy and business model and the related costs are","page_number":202,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"3493f421-236d-4394-a037-177e986514ba","block_type":"box","text":"immaterial.","page_number":202,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"7d5882d9-fcf3-447c-884d-698750c75498","block_type":"box","text":"We may vote against directors or a proposal to change a company’s domicile where it does not seem aligned","page_number":202,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"4ddcfabd-d29d-4d4b-9b40-2d1a885dfc70","block_type":"box","text":"with our clients’ financial interests.","page_number":202,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"243538c3-dfee-40d9-b817-b8399035c567","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":202,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"40d5be97-3ce6-4165-8a2e-c1b9ae89ab9d","block_type":"box","text":"Plans to materially change the nature of a company’s business or its purpose should be disclosed and explained","page_number":202,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"248579cb-639e-4eec-8eb1-bb02c0ecb608","block_type":"box","text":"in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor’s views","page_number":202,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"f61612b7-98be-43f4-93cf-4b3a2d222228","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":202,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"27df6d12-736c-4be1-8a8a-191657ebc98d","block_type":"box","text":"Where relevant, we may vote against proposals to change a company’s purpose or the nature of its business if","page_number":202,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"2a83eadc-c791-4280-9241-2ba348f15446","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":202,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"e8536938-94fa-4db6-8c6d-c3c60d6f2d15","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":202,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"021258af-8ff1-43cc-ab4e-606a2deaed07","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":202,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"9ac70e47-8e1b-4c1d-b411-3ebcf9387449","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":202,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"037b7d5e-3a03-4cdf-9728-76d9c897bdb8","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":202,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"ede20121-47e7-4157-ba02-78fbf94ef591","block_type":"box","text":"relevant to a company’s business.","page_number":202,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"13195743-5429-4c13-b2aa-81504eac9425","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":202,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"1105e12f-ef59-4adc-b1ef-9580c46d149a","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":202,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"f29688d1-f7c3-440b-8058-332f2dc19e82","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":202,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"5ab6eb2a-7f93-420e-a345-43c915718e4f","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":202,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"f541f748-fcb7-432a-a567-ab55c4c35a8c","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":202,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"0600c885-e4f7-4919-acef-d36c56575704","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":202,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"2e673b84-10a7-4bc9-933a-c09851c2640d","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":202,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"908c64fa-3f9b-4c59-9d59-0e1f255de42c","block_type":"box","text":"shareholder proposals that are legally binding on the company, seek to alter a company’s strategy or direct its","page_number":202,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"ac18912e-f818-4805-bf83-dfaf35fc34df","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":202,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"222fbfec-5f75-48af-b456-5e242ca838db","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":202,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"371b309b-074f-4bec-8f20-9b200f1c6137","block_type":"box","text":"and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our","page_number":202,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"f4004733-981b-4cd4-becf-ab13b215f323","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":202,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"aa09efe6-50c0-456e-a856-6d01b8cbd432","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":202,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"be5d5ea6-eef0-40c4-bdf7-473d2fb6932a","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":202,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"774d60fc-7210-4a76-a78b-0da8f10f9e7d","block_type":"box","text":"A corporation’s ability to engage in the policy process is subject to rules and regulations set by the jurisdictions","page_number":202,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"37220fae-d224-4e11-ba18-a98ff8961ae6","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":202,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"47bdde9c-b5f0-4f72-9a21-4ea2202b2fe6","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":202,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"f2583a91-8345-462c-8dd8-abf6665838fc","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":202,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"5a78cdc5-b399-4186-aca9-177cd11abe95","block_type":"box","text":"statements on policy matters material to the company’s long-term strategy. The board should be aware of the","page_number":202,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"ef637562-0465-4c0d-b3fd-a6e893578162","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":202,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"db5441b9-0f0d-4817-968e-c2e2965666a6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f7b8fcd1-ea7d-4cea-a2a3-1ac34a505cd8","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b8235a60-079f-4665-96b7-227ce68847f4","block_type":"box","text":"NM1026U-5982643-202/241","page_number":202,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"24f2b667-7236-4439-b3f7-ae2d23000085","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":203,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"78e9f926-1f07-4b3d-862b-b818ab7396ea","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":203,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"04e25010-b917-4e9b-a3d1-54ca09773468","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":203,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"6a2f1d19-17d1-4a4a-911c-560966d565c1","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":203,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"259dc477-7f9e-4da5-808e-457d68e7ccd2","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":203,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"bb68a58d-9407-4794-901f-bba3e971b870","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":203,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"fe90e0a1-a300-4ea7-9f0d-a7538548e3a0","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":203,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"93faf92a-d8ac-435d-bd53-4b7760f69285","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":203,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"39c431bb-6101-4a6c-9eb2-2ba119d6c192","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fabbad72-784a-47a5-82ab-bf9a21a80466","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2857c0a3-5182-48a2-896f-04aba79f06c9","block_type":"box","text":"NM1026U-5982643-203/241","page_number":203,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"c5a05dd6-29a2-48d9-a392-8dd5feee31cf","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":204,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"e355bc7c-53b6-4e4a-a95c-13e54f49a40d","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":204,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"3eb67bf8-772a-4349-9a44-0d8334a202a7","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":204,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"b996be25-cec9-4448-a801-3d1636d0d17d","block_type":"box","text":"11","page_number":204,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"aa0adb7e-d44a-4104-baad-268934780922","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":204,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"1cf8672a-0096-4f43-92f3-8164e0c805ea","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":204,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"4d01cc2c-113b-433f-b046-5d77230fdf20","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":204,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"e40f65cd-7c07-47a0-8beb-215e1d6ea296","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":204,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"e971753f-6895-4fb4-8dea-30dae692d603","block_type":"box","text":"regulatory requirements.","page_number":204,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"1e8a6bfc-1ddd-4306-9cb9-27f8d50f5587","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":204,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"af7bde53-e8b5-4a62-910d-b6056483a49a","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":204,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"86ebf282-782f-4c1e-9d07-8d451f9168f8","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":204,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"3b8bbc76-8d87-42b9-b9c4-0a54244a5d7d","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":204,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"6efabf36-3460-4043-aaa9-bfea1fd1e726","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":204,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"b6772b08-37d2-4cf5-885a-892410cc99a7","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":204,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"fea588c1-5a4a-43b6-b536-2d47ccb1ceef","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":204,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"c7f185e5-d4d5-4f63-9c18-4d2280d57c19","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":204,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"c687e7bc-8494-4204-bfdb-9a1ccb32d0ab","block_type":"box","text":"returns.","page_number":204,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"67287be7-1a61-41d1-92d3-12a554ffc980","block_type":"box","text":"KEY STAKEHOLDERS","page_number":204,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"94c55dd1-fe39-4d38-941d-eed964a1f129","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":204,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"f87c37d3-0579-423e-b80e-a654f491e92a","block_type":"box","text":"whom they depend for their success over time. It is for each company to determine their key stakeholders based on","page_number":204,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"6384761d-e8eb-4937-8498-d63be9013e34","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":204,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"66148eba-3488-4020-9d3b-1cce02555c98","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":204,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"c2b07892-9499-48b9-988f-35cb423157d5","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":204,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"0f5be5eb-1801-48ef-9183-158a0d16f2bf","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":204,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"8c0449e5-6979-44e2-8c26-f3e79f886822","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":204,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"637de328-9c51-4a47-a00e-155acb18b29d","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":204,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"2506a5d3-237b-4bf8-8ae6-3f0f7fc3ddf4","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":204,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"5e34113b-d445-4111-8b58-ae6c4d888a0e","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":204,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"caabd56b-ef71-47bd-8891-e5fa0e62a85f","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":204,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"a1a8be8e-d818-4e8f-a193-f18c46b94fec","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":204,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"41260c86-95d8-467a-81e3-9cbd8b6d221b","block_type":"box","text":"i.e.","page_number":204,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"dbb22e8c-0a06-4d59-86c9-50270f81d8cc","block_type":"box","text":", one in which global","page_number":204,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"e8b1b7d5-7dc1-446e-871f-ddddf2ba9d43","block_type":"box","text":"temperature rise is limited to 1.5°C above pre-industrial levels. In addition, clients in separately managed accounts","page_number":204,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"fbd7eb73-7706-4917-b8a3-e39d6929778e","block_type":"box","text":"may instruct BlackRock to apply these guidelines to their holdings. Both in the case of funds and separately managed","page_number":204,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"0495cb52-33c3-4afd-8c1a-d6946214ef05","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":204,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"d69dbb26-f205-4cb6-bd5b-d16afc974058","block_type":"box","text":"client.","page_number":204,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"306704db-da4f-4cb2-a8aa-0cb54b7a7d07","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":204,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"43e32a4d-3e08-4997-bb31-c8c6d99e6c14","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":204,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"bb5ba9e2-bf43-4d28-83d7-fff219d0ab1c","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":204,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"9e4cb07a-e7ff-43d8-89de-8ee6bd2ed192","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":204,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"713bd354-c406-4121-aa17-4d7fc916cca5","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":204,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"d1aee5fe-d4d2-4c6f-8061-48443e38dd1e","block_type":"box","text":"include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as","page_number":204,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"e32d97d0-d9b2-4475-bc23-52263ed9ac26","block_type":"box","text":"well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope","page_number":204,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"783a515d-aa05-43c8-858f-bc4098eda52c","block_type":"box","text":"1 and 2 emissions.","page_number":204,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"ee048adf-5711-4e13-8d33-cd76267f64fa","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":204,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"f0fbd5c2-ce74-437b-98b4-a8b4d3a68375","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":204,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"0bbc3b1f-a531-4586-ba40-9f46237938ec","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":204,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"755524fc-8b01-4b18-90f5-a09adb93965f","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":204,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"c25d8c45-b929-4530-beed-c3d91dbfa2cd","block_type":"box","text":"11","page_number":204,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"d6ea49ab-9b4a-403b-b819-a3702b32855f","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":204,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"bab3979a-0cc5-46f3-a264-2c8ebc6fc38c","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":204,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"dda1fefc-09ae-4173-9a5f-cd2b92ce2699","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":204,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"46c45b3c-8720-4517-af47-f49a4bd3934a","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":204,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"ae0c2f36-821a-4fd0-b522-a00e8b8dd63a","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":204,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"e420f4e0-f50d-4f04-8cc7-e1a5fd3080f8","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":204,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"d39fa5c1-db9c-4041-8b55-f95406298486","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":204,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"3a688512-6c79-483d-86ad-34fb035b7fa2","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":204,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"661f9301-5151-4fcf-82c8-92c56936c17f","block_type":"box","text":"sound governance framework.","page_number":204,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"4b3b2ae8-43b2-453d-b8ce-c0e1cefc6684","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ac529032-e4b5-4903-8bc8-b35cbdedc7e5","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"6960c8a5-0067-45dd-81e1-497269f72ac1","block_type":"box","text":"NM1026U-5982643-204/241","page_number":204,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"f465e5fa-798a-4d0b-90ed-c16f14657cbb","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":205,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"4a3d4918-e859-4688-8d9a-d56c312e9036","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":205,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"6d99fc98-249b-4bdd-8273-d9a286f973aa","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":205,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"59722fc9-92f7-44ed-a512-2c36c78b0c96","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":205,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"54009cf6-9b9e-476a-a4d0-e35185ae3bc5","block_type":"box","text":"their investment mandate and fund objectives. For the funds and accounts in scope, voting on matters not related to","page_number":205,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"34e76ad0-635b-40ef-878e-b508e3e7ce2e","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":205,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"8ceec1f8-26a8-4118-a712-9c2bd30e84b0","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5ab87332-6f20-44f6-a4f2-4cdcb94f336b","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b6072ad7-cfac-48ea-a304-9d0883966288","block_type":"box","text":"NM1026U-5982643-205/241","page_number":205,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"d5b0019e-059f-4d98-91a0-7d8194e9510d","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":206,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"f1ccd4bd-caac-467e-93fa-da7e14ef5bec","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":206,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"10ad8567-a67d-4cd1-b34f-82665b807ae2","block_type":"box","text":"Oversight","page_number":206,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"16a6a7d1-18ee-48f2-b5a3-af5907a2f896","block_type":"box","text":"The Global Head of BAIS has primary oversight of and responsibility for the team’s activities, including voting in","page_number":206,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"724d66e1-80b8-49ba-b809-f08ae3c630b4","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":206,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"6daaeebf-980c-485f-a911-5ed3a91cc451","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":206,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"03242317-0ceb-43db-86d6-54f0ad0aedbb","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":206,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"5395e649-3501-44f1-9aa0-772b9a801ff3","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":206,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"f273f408-21c2-4fe6-a30f-2501af67633c","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":206,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"322f68a4-5297-4de4-8f5a-fee4030599e0","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":206,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"9dfcd2dd-fc21-44ad-9934-a207202ad8be","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":206,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"84c5f03a-6839-4f43-aafa-6ced4d13652d","block_type":"box","text":"to BAIS’ policies and practices. It does not determine voting decisions, which are the responsibility of BAIS and the","page_number":206,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"c2f0d76c-8c70-44ac-a59a-133620626827","block_type":"box","text":"relevant active equity investors.","page_number":206,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"c4ea7b61-3b45-40e4-b3d5-a2a92007a384","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":206,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"c387a80d-fab9-4931-9f23-6fa664a257ad","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":206,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"ab25f520-9dd8-4b42-be2d-9dbfeb2d1d75","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":206,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"f88bedf9-46fd-4c56-98bd-f35be9e41283","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":206,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"1838a814-bf65-430d-bb18-b203e8a3e716","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":206,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"4de4ac86-d2ad-4955-beec-dec4a5a42811","block_type":"box","text":"third-par ty vote services providers” below).","page_number":206,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"86e9b185-ddc2-4690-a280-99ac90d55043","block_type":"box","text":"Voting guidelines and vote execution","page_number":206,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"3515285e-5629-42e1-bf31-a4daf635c788","block_type":"box","text":"BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items","page_number":206,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"b05167ae-0498-4365-8739-05f741d4f5c7","block_type":"box","text":"submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes","page_number":206,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"e5ea3a19-0191-4e00-bf5f-5b7814e26230","block_type":"box","text":"(or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of","page_number":206,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"d7af9883-218c-4fc6-bb43-43563bde0100","block_type":"box","text":"the voting items with the long-term economic interests of our clients, in the exercise of our independent business","page_number":206,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"98894388-a73b-4cbf-84ba-152b8a480dd3","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":206,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"33c8e98a-1d2b-40ac-8539-3c9ecdbc4158","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":206,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"60ce6948-e44b-4f58-bd24-f30fb955e8ea","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":206,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"3e2f7896-7b89-42c3-9064-e30421596db6","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":206,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"c3a32057-f77c-42fd-8487-258c6a582447","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":206,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"9c035f43-d747-47a8-90aa-effa1f4911fa","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":206,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"cffd9835-c8b1-4d68-9a05-86e51a05461c","block_type":"box","text":"The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the","page_number":206,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"139926bb-7a99-4265-979d-8ffd670600f9","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":206,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"944479f0-d80c-473b-b6ac-978d392359d4","block_type":"box","text":"do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues","page_number":206,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"146945cd-5ce5-4b39-a543-01b5b02ae409","block_type":"box","text":"generally, and provide insight into how we typically approach issues that are commonly put to a shareholder vote. The","page_number":206,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"060791ee-235f-4e8b-8c17-a28e269ff8c2","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":206,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"95d28a6b-c122-46a4-b83e-b21fbf8f7fea","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":206,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"5b46ab9b-cce3-46e2-b601-42c5e1e6feec","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":206,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"62b391d0-4a17-41aa-9c55-3af36d3c5d5d","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":206,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"1f0d18c5-c636-4c21-b07c-a512e015fab7","block_type":"box","text":"well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of","page_number":206,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"4a1988db-66ef-4c8c-9fd0-d0a065e5dca3","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":206,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"020a332e-14c4-4bda-9cea-1c51101fd908","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":206,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"a3f680b6-65c1-46b6-837c-8c7a59cb4503","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":206,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"754359f8-eb2c-465f-86f3-8dd271bfeea8","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":206,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"d0ed93aa-7e65-4b58-a336-60c389b54381","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":206,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"3a949185-a104-43a1-bdfe-ab4fa7b70a62","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":206,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"6059f198-10dd-4ca5-95a2-5785d37e3efc","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. In addition, BAIS may determine that it is","page_number":206,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"d4f19de0-ee10-4cc0-a88f-faea307c07df","block_type":"box","text":"generally in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs","page_number":206,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"e921db7b-caaa-4450-9f92-066277e4228d","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":206,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"f8d25fd8-4a2d-4b9d-ad2d-b8da6d5b7604","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":206,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"d93703c5-cbba-46ae-8e00-b9cea1225802","block_type":"box","text":"Voting Choice","page_number":206,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"e659ca27-7350-4277-b884-6e1c4f7e8ff1","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":206,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"f4579840-ef86-4452-a072-5ed4be4e42ff","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":206,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"f11f7c45-e4f8-468a-9bc7-bd44b758c155","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"362cbc63-4597-4027-85c1-d36129ac5e79","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"37d6f7ed-7972-41b4-a422-68aeb7104f18","block_type":"box","text":"NM1026U-5982643-206/241","page_number":206,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"67331506-0c1d-42e8-9950-e49981c426c5","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":207,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"fc58af9a-a497-47be-820a-552a184d92d4","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":207,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"c09d1f70-285d-472a-80ea-8f8b983f5fdb","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":207,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"8bdcb82c-9bf2-4bbc-ab41-182174230f22","block_type":"box","text":"strategies.","page_number":207,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"527490a3-bfc9-4f4c-a500-6e63033e26b1","block_type":"box","text":"12","page_number":207,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"b9ff27fe-56cb-4054-857e-fe84f4b1aecc","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":207,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"e810818f-550e-4543-9cba-925e08eef123","block_type":"box","text":"on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance","page_number":207,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"7bec65f6-2f09-4832-a5a2-4c1bc8200492","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":207,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"79387128-f5c5-42c3-bb53-798d76bc3ad4","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":207,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"31785b53-0aa4-4c83-9108-ed433c9ee9a0","block_type":"box","text":"13","page_number":207,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"90550a09-e09e-4d64-8624-adb02a072c00","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":207,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"fe3765b7-9035-4a07-bf09-8065291ae5e5","block_type":"box","text":"Third-par ty vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":207,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"81ce853c-aeea-4709-9bb7-fa8eb3098be7","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":207,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"a2b44c6b-1632-4986-b2da-0602efd29644","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":207,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"7a1167a0-de1b-4be8-a348-186e3c1f3788","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is impor tant to note that, although","page_number":207,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"4a489d8e-fd95-46a8-97be-e3da5696cd09","block_type":"box","text":"proxy research firms provide impor tant data and analysis, BAIS does not rely solely on their information or follow their","page_number":207,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"a5603e9a-221b-4adc-9c8f-10986d29f265","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":207,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"edde62d5-7c98-4823-b981-d5c8f1bdaaa7","block_type":"box","text":"our Guidelines are impor tant inputs into our voting decisions on behalf of clients.","page_number":207,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"adabc102-852b-4e2c-a7a1-979a8e6cd019","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":207,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"3cf11902-7228-464b-ae33-397d372482f9","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":207,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"d48efa35-edfd-4804-8352-4a2c2f8c14a6","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":207,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"786ce273-bda5-466a-9c29-36cd2e7ef22f","block_type":"box","text":"necessary to the relevant por tfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":207,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"91441ba9-5b1e-4b4e-8aa4-a1ba0dcb4645","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":207,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"5c56054c-819d-47ac-b1ec-14b601b78c36","block_type":"box","text":"monitor securities filings, research repor ts, company announcements, and direct communications from companies to","page_number":207,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"9c09c11b-3930-4e53-bc6a-09fdaf2b6146","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":207,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"0021a078-230d-4c5b-8a6d-1c542a1c93c7","block_type":"box","text":"BAIS closely monitors the third-par ty vote services providers we contract with to ensure that they are meeting our","page_number":207,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"d8f53734-959a-442c-bbf9-9d17727676d2","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":207,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"a9587f95-6ff0-4853-9af8-1d3393c0fc16","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":207,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"1d0fa375-b7e2-46a9-b482-975824eadc7c","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":207,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"dfac276e-5e2c-4dea-a121-c9cbe8d580c2","block_type":"box","text":"policies.","page_number":207,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"c5a475d2-84ee-4071-8888-3534c2a10d6a","block_type":"box","text":"Conflicts management policies and procedures","page_number":207,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"f1a481ee-73a1-4ba1-b0e3-bb351f4f34c6","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting activity.","page_number":207,"box":{"x":102,"y":510,"width":801,"height":11}},{"id":"c6fe3ed4-436e-4ce1-8db3-77a9b701f72f","block_type":"box","text":"Such influence might stem from any relationship between the investee company (or any shareholder proponent or","page_number":207,"box":{"x":69,"y":525,"width":809,"height":11}},{"id":"5ab81e9e-9701-433c-a1ad-14e202dc0a04","block_type":"box","text":"dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or BlackRock employees.","page_number":207,"box":{"x":69,"y":539,"width":831,"height":12}},{"id":"9d61eb12-2e44-45e1-81c2-4c508cca90e8","block_type":"box","text":"The following are examples of sources of perceived or potential conflicts of interest:","page_number":207,"box":{"x":68,"y":554,"width":598,"height":12}},{"id":"5fe72774-ed26-4533-b6f6-5bd91fdc0bfb","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":575,"width":6,"height":4}},{"id":"ac73f828-6f7b-4dbd-8734-0b65d4e9a29a","block_type":"box","text":"BlackRock clients who may be issuers of securities or proponents of shareholder resolutions","page_number":207,"box":{"x":102,"y":572,"width":660,"height":11}},{"id":"348ba64f-5402-466a-b5d1-1ad598702bdf","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":592,"width":6,"height":5}},{"id":"53eb634f-14e2-4896-9f6a-921929e6e11a","block_type":"box","text":"BlackRock business par tners or third par ties who may be issuers of securities or proponents of shareholder","page_number":207,"box":{"x":102,"y":589,"width":772,"height":11}},{"id":"097d5af7-62fd-4b3e-b2c6-82b774d2045f","block_type":"box","text":"resolutions","page_number":207,"box":{"x":102,"y":604,"width":78,"height":9}},{"id":"f40e8619-6a36-4fae-9a87-fcb58180cb05","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":624,"width":6,"height":5}},{"id":"6324ea62-1a48-4d3c-824c-394bca2de3a7","block_type":"box","text":"BlackRock employees who may sit on the boards of public companies held in Funds managed by BlackRock","page_number":207,"box":{"x":102,"y":621,"width":766,"height":12}},{"id":"0aef0dd9-7e54-43cf-be14-b27bf18a2a18","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":642,"width":6,"height":4}},{"id":"7ebc3763-a179-48ce-8dd0-2ebe002b8195","block_type":"box","text":"Significant BlackRock, Inc. investors who may be issuers of securities held in Funds managed by BlackRock","page_number":207,"box":{"x":102,"y":639,"width":767,"height":11}},{"id":"0b9a02be-1563-40ad-906c-4dddcdb21451","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":659,"width":6,"height":5}},{"id":"6edea78b-ce5f-46de-949c-d8b36fd45e96","block_type":"box","text":"Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by BlackRock","page_number":207,"box":{"x":102,"y":656,"width":698,"height":11}},{"id":"8024ad54-7f8a-4c48-a72a-d63ed76a5122","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":676,"width":6,"height":5}},{"id":"48adfa6f-ab3f-4073-9140-59647eb9922d","block_type":"box","text":"BlackRock, Inc. board members who serve as senior executives or directors of public companies held in Funds","page_number":207,"box":{"x":102,"y":673,"width":789,"height":11}},{"id":"398ae39c-f830-4f67-b568-fcb77304f049","block_type":"box","text":"managed by BlackRock","page_number":207,"box":{"x":102,"y":689,"width":163,"height":11}},{"id":"bbe6a436-b29c-4f83-b174-afc3d6b822df","block_type":"box","text":"BlackRock has taken cer tain steps to mitigate perceived or potential conflicts including, but not limited to, the","page_number":207,"box":{"x":102,"y":707,"width":785,"height":11}},{"id":"ecf9cf09-eed6-45dd-84a9-a1ed6d904fc8","block_type":"box","text":"following:","page_number":207,"box":{"x":68,"y":722,"width":66,"height":11}},{"id":"6de8f5ca-0b6e-46f3-94d3-f76314047ecb","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":742,"width":6,"height":5}},{"id":"f33dcebf-dd7f-405f-a354-4cfa2e527fc9","block_type":"box","text":"Adopted these Guidelines which are designed to advance our clients’ long-term financial interests in the","page_number":207,"box":{"x":101,"y":739,"width":741,"height":11}},{"id":"ff95f982-b719-4602-8c5b-0b9542ee3057","block_type":"box","text":"companies in which BlackRock invests on their behalf","page_number":207,"box":{"x":101,"y":754,"width":383,"height":11}},{"id":"46837054-64e1-4607-815a-2f13570f6240","block_type":"box","text":"•","page_number":207,"box":{"x":69,"y":774,"width":6,"height":5}},{"id":"0063020d-81ca-4eb0-90c0-add15c6e75ab","block_type":"box","text":"Established a repor ting structure that separates BAIS from employees with sales, vendor management, or","page_number":207,"box":{"x":102,"y":771,"width":757,"height":12}},{"id":"cd2a9bb0-8435-431b-b6a7-21f089015830","block_type":"box","text":"business par tnership roles. In addition, BlackRock seeks to ensure that all engagements with corporate issuers,","page_number":207,"box":{"x":102,"y":787,"width":802,"height":11}},{"id":"9b840152-d682-43cb-8f0f-9ce5783e8ffa","block_type":"box","text":"dissident shareholders or shareholder proponents are managed consistently and without regard to BlackRock’s","page_number":207,"box":{"x":101,"y":801,"width":794,"height":11}},{"id":"f5efbe77-406d-487c-9e54-74673fe124b7","block_type":"box","text":"relationship with such par ties. Clients or business par tners are not given preferential treatment or differentiated","page_number":207,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"1a2d5870-2f6d-48c4-ba76-50b037ca112f","block_type":"box","text":"access. BAIS prioritizes engagements based on factors including, but not limited to, our need for additional","page_number":207,"box":{"x":102,"y":831,"width":762,"height":11}},{"id":"c4b9e154-3437-4f68-a898-020c557661e3","block_type":"box","text":"12","page_number":207,"box":{"x":69,"y":861,"width":9,"height":4}},{"id":"1abbf2dd-89fe-4fa4-ac98-867db9c7c0a1","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-par ty proxy advisers the","page_number":207,"box":{"x":83,"y":860,"width":814,"height":11}},{"id":"516f17b1-9a33-40e7-aff0-7ddc636b6c4e","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":207,"box":{"x":70,"y":875,"width":838,"height":12}},{"id":"a430bad3-20c0-490f-a211-f92423740b71","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":207,"box":{"x":68,"y":891,"width":354,"height":11}},{"id":"7cdc3406-093b-4c81-a8be-5952be5e0f09","block_type":"box","text":"13","page_number":207,"box":{"x":69,"y":908,"width":9,"height":5}},{"id":"2eb2c367-b354-4ec5-a9c2-0c5554f260de","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":207,"box":{"x":84,"y":908,"width":820,"height":11}},{"id":"98187952-f78a-4536-8e68-e59c77b08dbc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f9da5539-9020-4481-9eb1-7dc2c9e436ae","block_type":"box","text":"Global Engagement and Voting Guidelines | 17","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"be32a262-4945-4808-91c1-392a909478e4","block_type":"box","text":"NM1026U-5982643-207/241","page_number":207,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"3322ed70-bb4c-4011-a326-600b38ef6b72","block_type":"box","text":"information to make a more informed voting decision or to better understand a company’s perspectives on","page_number":208,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"cb3101c6-b091-4526-9fca-8cbfa84e962f","block_type":"box","text":"financially material risks and oppor tunities. Within the normal course of business, BAIS may engage directly with","page_number":208,"box":{"x":101,"y":59,"width":802,"height":12}},{"id":"bd1a9b64-7ddc-4992-b6ad-7dbd98f69361","block_type":"box","text":"BlackRock clients, business par tners and/or third par ties, and/or with employees with sales, vendor","page_number":208,"box":{"x":102,"y":75,"width":719,"height":11}},{"id":"bd47e0be-e6e3-4650-920e-a6bceb8e45b1","block_type":"box","text":"management, or business par tnership roles, in discussions regarding our approach to stewardship, general","page_number":208,"box":{"x":102,"y":89,"width":766,"height":12}},{"id":"2c930448-9363-46ee-a06d-2e0ebc8a8b72","block_type":"box","text":"corporate governance matters, client repor ting needs, and/or to otherwise ensure that proxy-related client","page_number":208,"box":{"x":101,"y":104,"width":758,"height":11}},{"id":"b15ad69d-1936-4e20-b04a-9dfb86ad74d9","block_type":"box","text":"service levels are met","page_number":208,"box":{"x":102,"y":119,"width":157,"height":9}},{"id":"0ae7be0a-9cbd-4501-a73c-c1c46f3efcae","block_type":"box","text":"•","page_number":208,"box":{"x":69,"y":139,"width":6,"height":5}},{"id":"0e3887e2-617b-404a-a597-25169d179d2e","block_type":"box","text":"Determined to engage, in cer tain instances, an independent third-par ty voting service provider to make proxy","page_number":208,"box":{"x":102,"y":137,"width":777,"height":11}},{"id":"7911f74a-84ed-4170-95dc-3d6e059823be","block_type":"box","text":"voting recommendations as a fur ther safeguard to avoid perceived or potential conflicts of interest, to satisfy","page_number":208,"box":{"x":101,"y":151,"width":779,"height":11}},{"id":"d02e181b-35f1-4f4f-9828-9de00782b72c","block_type":"box","text":"regulatory requirements, or as may be otherwise required by applicable law. In such circumstances, the","page_number":208,"box":{"x":102,"y":166,"width":738,"height":11}},{"id":"f6321fe8-41d9-4fb0-86ec-827314de0b3d","block_type":"box","text":"independent third-par ty voting service provider provides BlackRock with recommendations, in accordance with","page_number":208,"box":{"x":102,"y":181,"width":782,"height":11}},{"id":"7dfb8d73-7de2-43a2-ba72-99bf2c736655","block_type":"box","text":"the Guidelines, as to how to vote such proxies. BlackRock uses an independent third-par ty voting service","page_number":208,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"439103be-9327-41f7-9b54-dc5c5e8597e7","block_type":"box","text":"provider to make proxy voting recommendations for shares of BlackRock, Inc. and companies affiliated with","page_number":208,"box":{"x":102,"y":211,"width":765,"height":11}},{"id":"9bbbea8b-bec2-495c-86d7-82f94879aa03","block_type":"box","text":"BlackRock, Inc. BlackRock may also use an independent third-par ty voting service provider to make proxy voting","page_number":208,"box":{"x":102,"y":226,"width":797,"height":11}},{"id":"f5456191-0431-4193-9e3f-2519dc585154","block_type":"box","text":"recommendations for cer tain perceived or potential conflicts of interest, including:","page_number":208,"box":{"x":102,"y":240,"width":584,"height":12}},{"id":"7e59902c-6d0c-4ba6-bd53-a22b43c45c22","block_type":"box","text":"•","page_number":208,"box":{"x":102,"y":261,"width":6,"height":4}},{"id":"6d782b24-f23c-4191-a0a2-7e732f3cd338","block_type":"box","text":"public companies that include BlackRock employees on their boards of directors","page_number":208,"box":{"x":135,"y":258,"width":570,"height":11}},{"id":"e93b4290-b144-4143-97eb-2a25b072cdbb","block_type":"box","text":"•","page_number":208,"box":{"x":102,"y":278,"width":6,"height":5}},{"id":"145d982d-6426-4fb1-86de-9b55d138968b","block_type":"box","text":"public companies of which a BlackRock, Inc. board member serves as a senior executive or a member of","page_number":208,"box":{"x":135,"y":275,"width":748,"height":11}},{"id":"f8c21ae2-b08a-4402-9656-8fd544d959fe","block_type":"box","text":"the board of directors","page_number":208,"box":{"x":134,"y":290,"width":153,"height":9}},{"id":"983cadae-3ba1-40ff-b41c-0c397c8f8a16","block_type":"box","text":"•","page_number":208,"box":{"x":102,"y":310,"width":6,"height":5}},{"id":"f0b55886-6a26-40d6-b440-8499dc27933e","block_type":"box","text":"public companies that are the subject of cer tain transactions involving BlackRock Funds","page_number":208,"box":{"x":135,"y":307,"width":626,"height":12}},{"id":"04e1e9ba-be12-4e9f-94b1-7c70035092a4","block_type":"box","text":"•","page_number":208,"box":{"x":102,"y":328,"width":6,"height":4}},{"id":"2358c126-7ce5-418b-ac93-7ad5e49a6d41","block_type":"box","text":"public companies that are joint venture par tners with BlackRock, and","page_number":208,"box":{"x":135,"y":325,"width":490,"height":11}},{"id":"6386cb94-3ccd-4f3b-9192-d74a77fc2841","block_type":"box","text":"•","page_number":208,"box":{"x":102,"y":345,"width":6,"height":5}},{"id":"1f3861e4-abb1-4c6c-93b5-6acd8e7c1132","block_type":"box","text":"public companies when legal or regulatory requirements compel BlackRock to use an independent third","page_number":208,"box":{"x":135,"y":342,"width":740,"height":11}},{"id":"56302455-46e3-431b-8971-5c1aac5b9ba5","block_type":"box","text":"par ty voting service provider","page_number":208,"box":{"x":135,"y":357,"width":200,"height":11}},{"id":"dbcbc1a5-9870-4750-908c-be2588466aab","block_type":"box","text":"In selecting an independent third-par ty voting service provider, we assess several characteristics, including but","page_number":208,"box":{"x":102,"y":376,"width":790,"height":11}},{"id":"3e6846e6-52c2-4eb1-91ce-b54d47631d22","block_type":"box","text":"not limited to: independence, an ability to analyze proxy issues and make recommendations in the economic interest","page_number":208,"box":{"x":69,"y":391,"width":834,"height":11}},{"id":"9f38f411-35c4-4176-91bd-8f0f44335889","block_type":"box","text":"of our clients in accordance with the Guidelines, reputation for reliability and integrity, and operational capacity to","page_number":208,"box":{"x":69,"y":405,"width":806,"height":12}},{"id":"68f250a8-b23e-48dd-adaf-abf90afd50d1","block_type":"box","text":"accurately deliver the assigned recommendations in a timely manner. We may engage more than one independent","page_number":208,"box":{"x":69,"y":420,"width":813,"height":12}},{"id":"3965c1dd-42ae-4f9a-a358-6353b90f07cd","block_type":"box","text":"third-par ty voting service provider, in par t to mitigate potential or perceived conflicts of interest at a single voting","page_number":208,"box":{"x":68,"y":435,"width":804,"height":11}},{"id":"a7d853b0-0d03-4812-ac4a-0d49344becf9","block_type":"box","text":"service provider.","page_number":208,"box":{"x":69,"y":450,"width":115,"height":11}},{"id":"26d72e18-2d0c-40a8-b933-936c327f75f9","block_type":"box","text":"Securities lending","page_number":208,"box":{"x":68,"y":473,"width":131,"height":11}},{"id":"0d27f673-dca6-42fd-9f53-3b613eac8e85","block_type":"box","text":"If authorized, BlackRock acts as a securities lending agent on behalf of its clients. Securities lending is a well","page_number":208,"box":{"x":102,"y":491,"width":785,"height":11}},{"id":"8fb90db5-289c-492f-9316-cc0c24362267","block_type":"box","text":"regulated practice that contributes to capital market efficiency. It also enables funds to generate additional returns","page_number":208,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"9b975fa7-72b8-462a-ba06-a0af42b8fb56","block_type":"box","text":"which in turn may allow fund providers to offset fund expenses.","page_number":208,"box":{"x":68,"y":521,"width":452,"height":11}},{"id":"a58ef077-371d-437c-9246-24fbee2d2ecd","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":208,"box":{"x":101,"y":540,"width":779,"height":11}},{"id":"e0b90934-c765-4ef9-bf7c-421cf99221d1","block_type":"box","text":"loan and may determine to recall them to allow for voting. This decision is guided by our fiduciary duty as an asset","page_number":208,"box":{"x":70,"y":554,"width":816,"height":12}},{"id":"b2b18fe6-305f-41a5-93a6-9e139e5f3a57","block_type":"box","text":"manager to our clients in helping them achieve their investment goals. While this has occurred in a limited number of","page_number":208,"box":{"x":69,"y":569,"width":836,"height":11}},{"id":"5c46212d-21b7-4c97-b32b-796834228185","block_type":"box","text":"cases, the decision to recall securities on loan as par t of BlackRock’s securities lending program in order to vote is","page_number":208,"box":{"x":69,"y":584,"width":824,"height":11}},{"id":"aca0ad1f-b0f9-4293-a6f5-e1171bde9aee","block_type":"box","text":"based on an evaluation of various factors that include, but are not limited to, assessing potential securities lending","page_number":208,"box":{"x":69,"y":599,"width":823,"height":11}},{"id":"873ead42-1858-462e-a532-946553f73bbc","block_type":"box","text":"revenue alongside the potential long-term financial value to clients of voting those securities (based on the","page_number":208,"box":{"x":69,"y":614,"width":761,"height":11}},{"id":"80988787-a676-41e7-bc0f-7eb0b20fd9b7","block_type":"box","text":"information available at the time of recall consideration). BAIS works with active por tfolio managers, as well as","page_number":208,"box":{"x":70,"y":629,"width":789,"height":11}},{"id":"cd4de8d2-1620-4aa3-83d6-387b9962c545","block_type":"box","text":"colleagues in the Securities Lending team, to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":208,"box":{"x":69,"y":643,"width":821,"height":12}},{"id":"f7815938-5ba0-4776-8737-e5c9ed5c7d71","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":208,"box":{"x":102,"y":662,"width":770,"height":11}},{"id":"69bbb8ad-f315-40ba-97fc-fcb226c2d66b","block_type":"box","text":"shares would not warrant recalling securities on loan. However, in cer tain instances, BlackRock may determine, in","page_number":208,"box":{"x":69,"y":677,"width":813,"height":11}},{"id":"9d0ba486-59dd-473c-bae4-cc9f9dfbea9b","block_type":"box","text":"our independent business judgment as a fiduciary, that the value of voting outweighs the securities lending revenue","page_number":208,"box":{"x":69,"y":692,"width":825,"height":11}},{"id":"89220eda-5ab4-46b4-94a7-e58a52fde893","block_type":"box","text":"loss to clients and would therefore recall shares to be voted in those instances.","page_number":208,"box":{"x":70,"y":707,"width":568,"height":9}},{"id":"90b86ac5-9478-43e2-a363-d19381c12335","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":208,"box":{"x":102,"y":725,"width":790,"height":12}},{"id":"49f1a492-f828-4caf-a6c2-7cf9bbd4cdad","block_type":"box","text":"and may modify it as necessary.","page_number":208,"box":{"x":69,"y":740,"width":228,"height":11}},{"id":"432791fd-b037-4bd6-a8d8-53c38f4651f4","block_type":"box","text":"Reporting and vote transparency","page_number":208,"box":{"x":69,"y":763,"width":239,"height":11}},{"id":"3d55b17f-f531-4220-b5e5-f2d68bd9143d","block_type":"box","text":"BAIS is committed to transparency in the stewardship work we do on behalf of clients. We inform clients about","page_number":208,"box":{"x":102,"y":781,"width":788,"height":11}},{"id":"edf2301b-b278-4e26-b53a-164cbbdb5688","block_type":"box","text":"our engagement and voting policies and activities through direct communication and disclosure on our website.","page_number":208,"box":{"x":69,"y":796,"width":791,"height":11}},{"id":"9cc1fa70-fa0a-45cd-92bf-7c00f311e5b4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"229bd762-fc45-45f5-a0fc-94ab8b6cf233","block_type":"box","text":"Global Engagement and Voting Guidelines | 18","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"879d061d-397a-4ee5-b2fa-06717bed71d4","block_type":"box","text":"NM1026U-5982643-208/241","page_number":208,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"9890cfeb-34b0-43d4-a775-974acd8f2976","block_type":"box","text":"Want to know more?","page_number":209,"box":{"x":68,"y":762,"width":152,"height":8}},{"id":"e421b5dd-8e47-4d8b-95f3-4cd0c48c5505","block_type":"box","text":"blackrock.com/stewardship | ContactActiveStewardship@blackrock.com","page_number":209,"box":{"x":69,"y":791,"width":510,"height":13}},{"id":"ba952945-6312-4939-a816-a450b5f7d50e","block_type":"box","text":"The document is provided for information purposes only and is subject to change. Reliance upon this information is","page_number":209,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"eeb06de4-6663-4d75-ae91-adc9cccbb50b","block_type":"box","text":"at the sole discretion of the reader.","page_number":209,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"d53dd6a8-a3cd-45d7-af14-b1b2df3e5617","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":209,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"a53b4399-5199-4d08-8f6d-f2fa95032a9b","block_type":"box","text":"©","page_number":209,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"9d9f7778-b2da-4385-b3eb-5e040a26eb89","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":209,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"74a33434-d6da-4783-91b8-79fea8d05ca4","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":209,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"362f517c-fa54-4cb0-a450-0d63c658146e","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0219558e-ff5d-4209-b99c-551c33cc33a9","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"dd33a168-b5c3-48d6-87de-bcec957bf7c2","block_type":"box","text":"NM1026U-5982643-209/241","page_number":209,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"8bd14a6c-ea7e-473b-8a43-df1ace9e4b87","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":210,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"63607b77-667a-4ebf-9613-f6c9d7bfca6a","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":210,"box":{"x":247,"y":90,"width":486,"height":11}},{"id":"96d6cbba-6080-45c5-a5ac-adfa4f524d36","block_type":"box","text":"Effective Date: January 1, 2025","page_number":210,"box":{"x":376,"y":105,"width":227,"height":11}},{"id":"0572adaa-522d-4ddc-97f1-ca4ea25b0241","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":210,"box":{"x":231,"y":128,"width":515,"height":11}},{"id":"8a0769e2-6f1b-4f3a-bb18-ace1dddde7e1","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":210,"box":{"x":306,"y":151,"width":388,"height":11}},{"id":"985b558b-2bdd-4925-b907-d6775a36901d","block_type":"box","text":"□","page_number":210,"box":{"x":184,"y":173,"width":14,"height":11}},{"id":"dcf1e843-d24a-4430-86cb-6bb8471149b3","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":210,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"82e2cfe3-24fc-47f8-a9a1-9854775d45d0","block_type":"box","text":"□","page_number":210,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"b1aec088-f934-412c-a97a-c8606c64620f","block_type":"box","text":"Money Market Funds","page_number":210,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"971a97ab-0d54-44e0-a2c7-d289fdbd2aff","block_type":"box","text":"□","page_number":210,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"9a9ca070-ec72-413c-8a2e-62bd5c8abb61","block_type":"box","text":"Closed-End Funds","page_number":210,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"5b97c656-8b03-4bdd-a46a-3531be1b4c95","block_type":"box","text":"□","page_number":210,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"946f3fe4-a9f3-496c-8bf8-bb5334f408bd","block_type":"box","text":"Other","page_number":210,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"7793e236-166f-4bdb-bb76-a41dfa060cdb","block_type":"box","text":"Objective and Scope","page_number":210,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"b6e150c1-d097-47f4-9039-09e4048bc194","block_type":"box","text":"Set for th below is the Index Equity Fund Proxy Voting Policy.","page_number":210,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"a2f8e4ad-e28c-4150-a1fe-3be06d82cd3c","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":210,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"b000020b-5877-4db6-8829-5f028d9f55c4","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":210,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"fe25a8ec-2b89-412d-96db-7b1438289310","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":210,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"d0796171-3475-4b25-9ac3-3b87e5eed3bf","block_type":"box","text":"voting proxies relating to por tfolio securities of the Funds, and have determined that it is in the best interests of","page_number":210,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"7c0eaa76-0ccd-4930-afcc-171995e885b8","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":210,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"c39a588d-5d11-49ce-8bef-308a9eb933c6","block_type":"box","text":"principles outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":210,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"85682dcf-c955-4f7e-a7ad-295cd60bab24","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":210,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"382b37b0-e714-4a1b-9f11-499607dc33e6","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":210,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"eb44cfff-66dc-4ace-89f6-e5a77e5cf78c","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":210,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"2447131a-2256-4cd0-a687-5d99fe731a98","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":210,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"ae97ed35-b756-4908-9813-0362524f86de","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":210,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"139deafa-7491-4ca2-89a5-7d42065d4eba","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":210,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"47226a73-cfcc-4824-ba43-83b473f17f18","block_type":"box","text":"Appendix A.","page_number":210,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"9c1e94dc-bd02-4282-8996-533cca09da1e","block_type":"box","text":"BlackRock will cast votes on behalf of each of the Funds covered by this policy on specific proxy issues in","page_number":210,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"1972bfa9-9225-43dd-8240-a0f228392954","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":210,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"f5598596-a623-4536-bde9-e3a060116d59","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":210,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"11f6517e-607c-48c4-938b-2fd2cda9ffae","block_type":"box","text":"Conflicts Management","page_number":210,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"09a7bff8-8cb4-4d2c-96fd-50e640cee85e","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":210,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"27cdb006-9754-42d5-9d9f-df6cf5868388","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":210,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"49a3b577-1b60-41c7-9a41-4bd0433b7c0a","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":210,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"07b1a686-5c9e-421f-a7a5-db7bfc6b6470","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":210,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"0ca65527-8190-4cf2-97b9-8b65cf9d1bb4","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":210,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"3cb06613-d511-4896-bd55-5606308c95e6","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":210,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"cb749008-9e50-4b2a-aded-876d22e054f6","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":210,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"c6ade99a-1c3d-41b4-b601-62649d49b808","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":210,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"e1c4b42a-3760-466c-a54f-1b98ede195b0","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":210,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"a50ddd61-3531-4ac9-a306-04582a3522da","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":210,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"54bc7dc3-5a29-4b9d-8776-ef286b3149e3","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":210,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"988e71b2-a3d6-461b-8d62-99ef0d702044","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":210,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"995e5694-f094-48e1-869b-f6a3d199a6df","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":210,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"2ee9d8a1-3a78-4b58-b1d0-0c841952dbc2","block_type":"box","text":"connection with proxy voting.","page_number":210,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"0be4bfd2-ee85-4e92-af55-29b9fe9ee53f","block_type":"box","text":"Reports to the Board","page_number":210,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"19f0e4b6-66bf-4945-ac2c-ddf3edb09e76","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":210,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"373c4dd2-5663-4d32-848e-3c12cc1161f3","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":210,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"4f6d94db-eced-4d5d-b640-d1403d11955e","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":210,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"b0f22cce-2c5a-482c-9943-04e6aaac72aa","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":210,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"baa63070-e11a-4b89-b2cd-6193dbca98aa","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":210,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"41bf0506-14b2-42fb-8519-3f13a645ff05","block_type":"box","text":"been repor ted.","page_number":210,"box":{"x":102,"y":882,"width":104,"height":10}},{"id":"1df12d3c-d7bb-49bb-9a25-9051b75ace0d","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":210,"box":{"x":651,"y":45,"width":259,"height":11}},{"id":"d2f6a042-2465-4d02-8112-1418a96d163e","block_type":"box","text":"BlackRock","page_number":210,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"c371b149-fcaa-4676-9b8a-f7a8a970640f","block_type":"box","text":"Public Page 1 of 2","page_number":210,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"87bd7a0f-a770-43aa-b7f4-296be0dfa49c","block_type":"box","text":"NM1026U-5982643-210/241","page_number":210,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"b96dc23e-0301-4cb8-ae8f-9b78de7cf726","block_type":"box","text":"Appendix A","page_number":211,"box":{"x":101,"y":75,"width":82,"height":11}},{"id":"249a9a56-99c3-4957-b4b6-2860fcb40736","block_type":"box","text":"iShares Climate Conscious & Transition MSCI USA ETF","page_number":211,"box":{"x":135,"y":98,"width":389,"height":9}},{"id":"89cfdeed-6547-4da9-9105-26efabdd6e7f","block_type":"box","text":"iShares ESG Advanced MSCI EAFE ETF","page_number":211,"box":{"x":135,"y":120,"width":274,"height":9}},{"id":"b512d921-dd53-4498-aca2-a936cc815f05","block_type":"box","text":"iShares ESG Advanced MSCI EM ETF","page_number":211,"box":{"x":135,"y":143,"width":261,"height":9}},{"id":"3f9c472d-0c22-4bdd-a15f-4d7b0ee41ddf","block_type":"box","text":"iShares ESG Advanced MSCI USA ETF","page_number":211,"box":{"x":135,"y":166,"width":268,"height":9}},{"id":"b933c3c3-537b-46c5-a85b-c02487e8dd63","block_type":"box","text":"iShares ESG MSCI EM Leaders ETF","page_number":211,"box":{"x":135,"y":188,"width":250,"height":9}},{"id":"c88d196c-9456-4e91-9df6-a5138caa1471","block_type":"box","text":"iShares ESG MSCI USA Leaders ETF","page_number":211,"box":{"x":135,"y":211,"width":257,"height":9}},{"id":"bca42ffd-9fc7-4d59-88d2-e4e4e831da68","block_type":"box","text":"iShares MSCI ACWI Low Carbon Target ETF","page_number":211,"box":{"x":135,"y":234,"width":304,"height":11}},{"id":"35a03138-d6d5-4720-8793-9add7fd9504c","block_type":"box","text":"iShares MSCI KLD 400 Social ETF","page_number":211,"box":{"x":135,"y":256,"width":242,"height":9}},{"id":"db1d0e96-9de2-492f-86ac-f4e688c7ee81","block_type":"box","text":"iShares MSCI USA ESG Select ETF","page_number":211,"box":{"x":135,"y":279,"width":245,"height":9}},{"id":"fbb2adbe-a3ac-4bfb-a3ac-f7330556a2ac","block_type":"box","text":"iShares Paris-Aligned Climate MSCI USA ETF","page_number":211,"box":{"x":135,"y":302,"width":315,"height":11}},{"id":"2e89f0e0-175b-44f9-8612-6307e12ac134","block_type":"box","text":"iShares Paris-Aligned Climate MSCI World ex USA ETF","page_number":211,"box":{"x":135,"y":324,"width":380,"height":12}},{"id":"36d46c60-c848-4123-8943-f2f5c4e103ea","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":211,"box":{"x":651,"y":45,"width":259,"height":11}},{"id":"b4c85bf1-eae8-4bbf-9e9b-4ba5ab1b456e","block_type":"box","text":"BlackRock","page_number":211,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"57409a8e-011e-4a38-a88a-2b10aa95f006","block_type":"box","text":"Public Page 2 of 2","page_number":211,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"166a5f81-563f-4636-9f3b-203d174d0e64","block_type":"box","text":"NM1026U-5982643-211/241","page_number":211,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"d3ed3acb-d18a-4f79-8fa8-a3ed61bd4d24","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"44f45f3a-ed21-4249-ad81-438bb0b90944","block_type":"box","text":"Global Principles for Benchmark Policies","page_number":212,"box":{"x":341,"y":67,"width":296,"height":11}},{"id":"4ab14424-ae46-43f6-b000-36b24974ff73","block_type":"box","text":"Effective as of January 2026","page_number":212,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"0d3dbe8b-73ea-48d6-9bf6-65257068e885","block_type":"box","text":"NM1026U-5982643-212/241","page_number":212,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"0b599dcc-c740-4fe0-9441-291b5dc49f73","block_type":"box","text":"TABLE OF CONTENTS","page_number":213,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"1ed48cb1-20d0-424b-a7d0-18ea043cf2df","block_type":"box","text":"Page","page_number":213,"box":{"x":876,"y":65,"width":28,"height":9}},{"id":"afe80ce3-d0fd-494a-b01b-f95381054d30","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":213,"box":{"x":74,"y":84,"width":451,"height":9}},{"id":"9d595ad4-a374-4b87-95db-57cbd0d992e7","block_type":"box","text":".......................................... 3","page_number":213,"box":{"x":528,"y":84,"width":376,"height":9}},{"id":"9efc6261-8b28-45c6-844e-da408364263f","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":213,"box":{"x":74,"y":101,"width":337,"height":9}},{"id":"6699b118-b349-4c7a-9201-6b6172f051ee","block_type":"box","text":"........................................................ 3","page_number":213,"box":{"x":414,"y":101,"width":490,"height":9}},{"id":"0ea5f621-1d1d-4d41-bfa5-864b8c7f1ebe","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":213,"box":{"x":74,"y":117,"width":197,"height":9}},{"id":"e6e8dc9b-fd4a-454c-971d-d8882074766a","block_type":"box","text":"......................................................................... 4","page_number":213,"box":{"x":275,"y":117,"width":629,"height":9}},{"id":"08d92aec-e40d-4f30-9ada-f470f64bb8da","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":213,"box":{"x":74,"y":134,"width":190,"height":8}},{"id":"c5c9cf96-5848-4d5a-b7ed-12d43e6aee5b","block_type":"box","text":".......................................................................... 5","page_number":213,"box":{"x":267,"y":134,"width":637,"height":8}},{"id":"9221d7ca-ec0f-4c3d-b992-0cb6cbabf5b5","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":213,"box":{"x":73,"y":150,"width":294,"height":9}},{"id":"3e39c221-e945-401b-acfd-c7b6f6917b7b","block_type":"box","text":"............................................................. 7","page_number":213,"box":{"x":373,"y":150,"width":531,"height":9}},{"id":"285d95a1-25dc-46f6-9946-a4dc4dcd3376","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":213,"box":{"x":74,"y":166,"width":728,"height":11}},{"id":"295e69c5-0315-49aa-956c-1e97ca9ec3c2","block_type":"box","text":"........ 7","page_number":213,"box":{"x":805,"y":166,"width":99,"height":9}},{"id":"a7e3253c-3a77-4ae9-9245-4dafdc2a5789","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":213,"box":{"x":74,"y":183,"width":322,"height":9}},{"id":"f6005150-a186-4ee2-b861-b4334b222eea","block_type":"box","text":"......................................................... 8","page_number":213,"box":{"x":406,"y":183,"width":498,"height":9}},{"id":"1d6e9603-050c-4b0a-90fd-3449fe2342e6","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":213,"box":{"x":73,"y":199,"width":595,"height":9}},{"id":"1de59e45-ad29-4f13-ae0f-470a6a487811","block_type":"box","text":"........................ 9","page_number":213,"box":{"x":675,"y":199,"width":229,"height":9}},{"id":"b8ff068a-4c0a-491e-9926-39de6bb8f189","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":213,"box":{"x":73,"y":215,"width":207,"height":9}},{"id":"c5adf455-9f5b-4bb9-bded-91ab507b48fc","block_type":"box","text":"........................................................................ 9","page_number":213,"box":{"x":283,"y":215,"width":621,"height":9}},{"id":"4cbd5b5b-af3c-422a-a22e-5a6a1b6dfcf3","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":213,"box":{"x":74,"y":232,"width":484,"height":9}},{"id":"674adf34-2e2b-4514-a1e5-d129161675d6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":213,"box":{"x":561,"y":232,"width":343,"height":9}},{"id":"a487ee80-5d4a-49c2-922c-fdad0d17cc60","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":213,"box":{"x":74,"y":248,"width":553,"height":9}},{"id":"3dd2c0e5-8bcc-4ee2-9df8-59935ab924a7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12","page_number":213,"box":{"x":634,"y":248,"width":270,"height":9}},{"id":"091c67c6-51ac-4ffa-8ee4-218e65e83c9c","block_type":"box","text":"VOTING CHOICE","page_number":213,"box":{"x":73,"y":265,"width":118,"height":8}},{"id":"36e672dc-1fe5-45ef-bd24-781071934c44","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13","page_number":213,"box":{"x":194,"y":265,"width":710,"height":8}},{"id":"ed869247-7bbb-410a-8f58-8a7c3b80cf7a","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":213,"box":{"x":74,"y":295,"width":293,"height":9}},{"id":"32a25b00-410f-490f-bb46-6baa6668d407","block_type":"box","text":".............................................................","page_number":213,"box":{"x":373,"y":302,"width":491,"height":2}},{"id":"1ae28e14-7e9d-4239-adf2-614065098602","block_type":"box","text":"14","page_number":213,"box":{"x":886,"y":281,"width":18,"height":9}},{"id":"a07f7041-ae37-42d1-98d4-6f456799a324","block_type":"box","text":"The purpose of this document is to provide an overarching explanation of BlackRock’s global approach to our","page_number":213,"box":{"x":75,"y":341,"width":778,"height":12}},{"id":"05810077-13d8-4c5b-aaab-3f15a0aa4b89","block_type":"box","text":"responsibilities as a shareholder on behalf of our clients, the principles that guide our dialogue with","page_number":213,"box":{"x":74,"y":355,"width":711,"height":11}},{"id":"4600a13e-d95d-4b63-8a4f-5e970edb94e5","block_type":"box","text":"companies, and our commitments to clients in terms of our own governance and transparency.","page_number":213,"box":{"x":74,"y":369,"width":674,"height":11}},{"id":"5e1a2061-ff01-4ee7-8df7-55820fe37d25","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b709eae4-77af-4d45-bd13-b08bd53d44db","block_type":"box","text":"Global Principles | 2","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"366472bc-070c-4acd-af24-cd3c5e794bfd","block_type":"box","text":"NM1026U-5982643-213/241","page_number":213,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"67a9e3a0-22f8-4d2b-aa0f-a3d4bc1c60a9","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":214,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"3b115254-c8ee-46db-aa15-db0b66b88c58","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":214,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"2859fc0a-95be-4fca-9cfa-f0a37fd31ba9","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. BlackRock offers a","page_number":214,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"668b806e-5b2a-4db5-8c22-961119f1e01e","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":214,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"b7e8cebc-dc61-4011-b6bb-6d4258c47a03","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":214,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"98bd9c38-9a80-4f68-9807-0d81e8cd0461","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship effor ts, reflecting the","page_number":214,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"cadb27fa-6d54-4031-a27f-b7145314a30d","block_type":"box","text":"investment horizons of the majority of our clients. BIS does this through:","page_number":214,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"e0d7119c-9502-4817-9023-96b6d43cea7b","block_type":"box","text":"1. Engaging with the boards and management of companies","page_number":214,"box":{"x":69,"y":171,"width":451,"height":11}},{"id":"346b321e-1a09-4cdd-8127-52a9e6e6c156","block_type":"box","text":"in which clients are invested to deepen our","page_number":214,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"9db26405-fb3d-46e7-a885-cf14c47efa05","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":214,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"ee6eb45f-ded5-4c90-ba0a-1f5d7cc2f457","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients.","page_number":214,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"ecf6d1b2-924b-4951-bf9e-2feedb66746c","block_type":"box","text":"1","page_number":214,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"04143ca2-b218-4533-bca0-0be671c7b9f8","block_type":"box","text":"2. Voting at shareholder meetings","page_number":214,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"befc0177-e33c-4727-89be-432592b849e2","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":214,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"ee165fb1-160a-4e42-aa40-e5bcfee2e92a","block_type":"box","text":"to vote on their behalf.","page_number":214,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"9213cf74-3bf6-4d41-9872-2a45021a11f4","block_type":"box","text":"3. Contributing to industry dialogue on stewardship","page_number":214,"box":{"x":69,"y":256,"width":388,"height":11}},{"id":"6e76e74c-b36c-4f9f-bec7-3b9d4317c827","block_type":"box","text":"to share our perspectives on matters that may impact our","page_number":214,"box":{"x":462,"y":257,"width":412,"height":10}},{"id":"e63abb0c-27f9-4188-9453-ce4df24d6aba","block_type":"box","text":"clients’ investments.","page_number":214,"box":{"x":101,"y":272,"width":147,"height":8}},{"id":"129feb36-2958-47a7-b9c9-795cf1c4f997","block_type":"box","text":"4. Reporting on our activities to inform clients","page_number":214,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"6c81f216-a07d-401f-8be3-477af185224b","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":214,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"d77be9f0-ff16-40e3-a25c-b3f469a7fbf8","block_type":"box","text":"publications on our website and direct client communications.","page_number":214,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"6852035c-5a78-40d8-a952-03fa82a72c97","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":214,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"8517379a-5143-471a-9a16-25e76efa6f29","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":214,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"050dd2ba-9e83-4cbf-94f2-59a6cbb61a72","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":214,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"11ab3be2-2e5e-48d0-bdba-ab182e473232","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":214,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"6d9bad95-066b-4cf2-a609-ed6e33dff3e7","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":214,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"039719a5-2746-433f-94a3-d76e5a35da42","block_type":"box","text":"2","page_number":214,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"df55263f-9cbb-490e-93cf-6573acb27b87","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":214,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"9c16bd93-8213-451a-b2f9-427aea2f10fa","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. We maintain global","page_number":214,"box":{"x":102,"y":443,"width":751,"height":11}},{"id":"7f62b152-f1c1-45c1-b1fc-4b18431ea027","block_type":"box","text":"principles on corporate governance, which guide our approach to stewardship across jurisdictions, while recognizing","page_number":214,"box":{"x":70,"y":458,"width":824,"height":11}},{"id":"80cf7dbc-09bf-4a91-9ca3-61bca9edb5e3","block_type":"box","text":"the unique characteristics of the different markets where companies operate.","page_number":214,"box":{"x":68,"y":473,"width":553,"height":11}},{"id":"b486f5d4-1f96-429b-828d-3d7a140c231c","block_type":"box","text":"Setting, executing, and overseeing strategy are the responsibility of management and the board. As one of many","page_number":214,"box":{"x":102,"y":496,"width":802,"height":11}},{"id":"1efbd56f-7a37-474d-8fe5-7d768b9facbe","block_type":"box","text":"minority shareholders in public companies, BlackRock does not direct a company’s strategy or its implementation,","page_number":214,"box":{"x":69,"y":511,"width":813,"height":11}},{"id":"83699993-2dd1-459f-a199-3974068d6de4","block_type":"box","text":"nor how they should manage material business risks. Our role, on behalf of clients as long-term investors, is to better","page_number":214,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"30d02392-aecc-4fed-8f41-3a784da8d206","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":214,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"a8ceb7ac-f74f-4d7e-9645-03f6588922a4","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":214,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"52b4ee87-c01b-4281-b074-7aade0fecd86","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":214,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"ba5817c2-e577-4c0e-8bc0-761f15f7a563","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":214,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"f6ac215c-00bb-4fad-859a-1fc61b1363fb","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":214,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"61e6b748-f1cf-4868-b2bf-28cf64b541c8","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":214,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"174e5b18-3a08-4e62-94e4-4d606479df6a","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":214,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"68fe4695-35f0-4f0f-a819-a59342c40e27","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":214,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"be67c37a-5208-4bca-b808-b3f4073f86df","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":214,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"3617bba4-073a-49a5-b03f-dc1cb0dd22de","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":214,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"47bf10d8-00ae-442c-889a-3f285e3370e9","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":214,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"c8c96874-20f3-4664-a9fb-4d14a2de0885","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":214,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"4807bdc0-b61a-4248-af3c-344ce4ec7bef","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":214,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"bb2a3d83-cd7b-46c5-aa1b-359447a9f725","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":214,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"fe9af257-1868-4e0c-b69a-abf1af30f526","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":214,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"00814bb4-2b6b-4db3-97ab-838f0699842c","block_type":"box","text":"1","page_number":214,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"ef0c7432-b421-4f05-ba43-33538842e8c1","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":214,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"d4b3fabd-fc8e-489d-b9cb-188640d47782","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":214,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"18b7d788-7a24-4420-a147-728b2d3b5dee","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":214,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"f42d1b0d-768c-4269-be97-fbd779c61117","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":214,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"8849a1ea-0782-4ccf-8438-4c95ed1221fc","block_type":"box","text":"2","page_number":214,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"e1aa1b3a-13d1-444f-a28e-fc639bef3799","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":214,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"5816cb58-8e12-4d9e-a761-dcb627f9107d","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":214,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"c1b8bafe-6172-4fa0-bad2-e9f0e6bb239e","block_type":"box","text":"material business risk or oppor tunity.","page_number":214,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"6a987ad0-dc0a-4e9f-9dbd-16faaa830c17","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e4a15341-e699-4ce5-b972-258026d2777a","block_type":"box","text":"Global Principles | 3","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"bc649b44-2168-47c6-a61e-9e380d32954d","block_type":"box","text":"NM1026U-5982643-214/241","page_number":214,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"e119ea30-314d-4934-9d12-74ce587b94cf","block_type":"box","text":"Voting at a company’s shareholder meeting is a right of share ownership and a core principle of corporate","page_number":215,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"8a04511c-77c7-42bf-92b0-b5ae3468bf32","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":215,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"77798cbd-a366-4ce6-b0e0-802a8eab92fb","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":215,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"b7387aa2-1cc7-4c8f-8528-c7438e426be3","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":215,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"5546d7fb-6e4f-41af-b19d-c66a4ceeaa1a","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":215,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"72ceb8ec-0bdc-43e5-9d76-183b60592d09","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":215,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"ea3e7c9c-3c7e-4ce6-90b4-d7212f7518ed","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":215,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"dad1b543-e20a-470f-8f9e-cdcce0eabc80","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":215,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"530e588c-b660-4837-ad65-09e40efb2e0d","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":215,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"bbb6c161-6d3f-4bf5-b3a7-834d08278706","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":215,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"fc74a659-ac78-4f76-b4b5-26aebeb5531a","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":215,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"49d2b9c5-3825-43fa-b86d-47b9c34ec65e","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":215,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"6b5c0e15-de59-4d04-b581-2238e9178057","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":215,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"4241b4df-ec05-48fd-ac64-fddbe265b9e4","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":215,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"6ddfcf70-b42b-49cd-9b96-ef473c685c91","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":215,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"c9eaa143-9436-4fc0-82ed-44d78f6aec96","block_type":"box","text":"3","page_number":215,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"3a07a726-a7ce-4031-9a75-97f983400fd0","block_type":"box","text":"For example, in","page_number":215,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"9ae5fbf7-380d-491e-9576-f3dd7efecafc","block_type":"box","text":"most markets, shareholders have the right to:","page_number":215,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"19780c52-2d41-4d73-a82a-d6f807d5cae2","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"8afbfa0b-55fc-4bef-99b8-c680f988ed96","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":215,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"a6f41285-9ec7-45c8-bac2-84c9f6ec15f9","block_type":"box","text":"char ter or bylaws.","page_number":215,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"850b20cf-2de8-4547-b3b9-88fba88a0c8a","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"de3dff1d-c0ee-4adb-a0e8-ff944ea3e1f7","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":215,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"494b6612-9711-4e85-beba-198a5d7c9fb6","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":215,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"2f17500d-7878-4889-b57e-94c9b5c24045","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"b8114235-d55e-4929-9680-c67a237c37db","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":215,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"a31419c2-87dc-4add-be2a-b5023a03ec6d","block_type":"box","text":"are material — to make informed decisions.","page_number":215,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"05c40d76-55bf-4b29-abf2-7a2739a98222","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":215,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"06f32ef7-76d6-4b05-9558-b8c38a4cd3e6","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":215,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"4b565690-d3d1-4edb-bcf4-b5f29e2b0c4f","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":215,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"6381232e-4a70-4858-bacc-8f013784d0a4","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":215,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"5cb11603-4d5b-43d1-9747-86c1a53c4989","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"b6aeb970-cf0d-4ba6-8238-e487dff73a47","block_type":"box","text":"Boards and directors","page_number":215,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"de7058f8-761f-40dd-a7c3-5ee412442993","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"014da0ee-fda9-4e9e-b904-f414a47a9861","block_type":"box","text":"Auditors and audit-related issues","page_number":215,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"cfafc3ed-c5c9-4091-9aba-58c71fed7b3b","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"14657404-e969-4f21-bad7-ed7e3ca04930","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":215,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"2d9d6ede-9df8-4c2a-8457-1b3055e22755","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"144da53b-f59e-47ed-a8a7-c66a1e3253e7","block_type":"box","text":"Executive compensation","page_number":215,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"ee7cdbb6-7f1e-4263-9566-ef8b5c672386","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"5b10cf6b-4fe5-47d4-8557-b6222533c3c9","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":215,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"20ae04b2-3374-495b-b095-b690a88c401a","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"ebe2b2a5-9109-49f8-8e7c-ea37b1ad4daa","block_type":"box","text":"Shareholder proposals","page_number":215,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"227251ef-0e95-4a8a-9189-d67a9db60e75","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":215,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"b75914c4-0440-42d1-946d-75f3df39d844","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":215,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"3494c809-6581-4206-baf7-6e73fff12d42","block_type":"box","text":"which companies operate.","page_number":215,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"d20484dd-96b0-4ad3-86ac-eb72ca6c3f45","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":215,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"0c7d1888-b754-4a73-b2b8-637f5533be0e","block_type":"box","text":"in their domestic market at a minimum, and we ask that, if they do not, they explain how their approach better","page_number":215,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"ad7c94f5-52ee-412b-a163-31cc6d7dfbe1","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":215,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"2ce07161-6e5f-4ecb-8321-216b6b2cecbd","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":215,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"9072cdd7-c251-452c-b2b7-3ffbdac0b7df","block_type":"box","text":"4","page_number":215,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"1fca04e9-181b-41cc-b958-05255c50a249","block_type":"box","text":"3","page_number":215,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"37e5c604-9860-4541-9d02-12b8faa7ece4","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":215,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"5d98a848-f31e-4717-88a9-2c905320ddb2","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":215,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"a7c39be3-191e-4419-aa2e-a36d6759eaeb","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":215,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"d6bf1291-ab74-41ed-9609-b7cb4827355d","block_type":"box","text":"4","page_number":215,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"99aead03-fe0f-458a-9f8c-5cc7a36eea0d","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":215,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"85c0ff74-76fc-4ac5-8337-659efaee3fbd","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":215,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"4bcedfe5-bda2-4b2e-ac6b-39ee5f13da1f","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":215,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"780635b7-d71b-4599-91c4-ce7530616858","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":215,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"ba82f9cf-6ff4-46ea-b784-6d3d9b564447","block_type":"box","text":"guidelines.","page_number":215,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"942f1d61-7f38-4bc6-8cc2-6598fd7b8306","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"84bbdb08-0a66-4baf-98ef-f49c482524ba","block_type":"box","text":"Global Principles | 4","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"dda72dd8-8215-4b2f-b3db-443f67cc5a0d","block_type":"box","text":"NM1026U-5982643-215/241","page_number":215,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"713d13ba-82fe-4ca3-b429-2d73c09c8481","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":216,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"e831b384-cfa4-4e7a-9d69-0519457c91e9","block_type":"box","text":"Oversight role of the board","page_number":216,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"30812d8e-9938-4755-b0be-89011a7abc90","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":216,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"659b383e-ae3f-4e60-9c21-6dcef5186f4e","block_type":"box","text":"characteristics relevant to a company’s business enhance the board’s ability to add long-term financial value and","page_number":216,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"a42193b1-6f2a-4794-bd7c-20967d30e2db","block_type":"box","text":"serve as the voice of shareholders in board discussions. In our view, a strong board gives a company a competitive","page_number":216,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"7220cb1b-2c33-443e-8381-4fcdcf9bcf58","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":216,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"7d3cd81c-6437-4ce2-a1a3-9006df864d9c","block_type":"box","text":"long-term financial per formance.","page_number":216,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"c7425569-4e59-4a59-901e-400d43d9ee38","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":216,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"7902e810-7524-4a7f-98f1-9c8a6d29c960","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":216,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"8247b8cd-7dc3-404f-b6db-c08dd715c6bd","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":216,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"4ad58eca-8e99-4445-81e3-9a5854ac29b1","block_type":"box","text":"the business environment in which a company is operating.","page_number":216,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"fff7ab32-9910-4f12-a68a-103bbb2918f5","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":216,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"ace93c64-7149-4af0-a32b-f61262d91d73","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":216,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"a417f902-1c3b-465e-af74-4fd27b7dc0e7","block_type":"box","text":"long-term financial interests of investors. This includes having clear descriptions of the role of the board and the","page_number":216,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"271b8529-2d56-4a26-9907-df0c03a09f9d","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":216,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"0f596628-f225-4592-aca2-c7c1d00831fd","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":216,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"9d9ea72f-9467-4014-b241-35c37300da9f","block_type":"box","text":"mitigating such risks.","page_number":216,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"a09f4342-856c-42f0-8841-1f60612f17e2","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":216,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"689bf034-7e7d-48cb-9ae9-7ea444331928","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":216,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"f58e504d-dade-4e16-accf-0a2120924850","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":216,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"06d8f151-47d3-4696-8718-93e0b3181696","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":216,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"de62d603-9b0f-45db-b343-548b2291db8b","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":216,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"0e09a964-5883-481b-a21b-abf7653ac722","block_type":"box","text":"strategy.","page_number":216,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"ef2feebb-6864-45fa-8e36-731e25e88f58","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":216,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"809b312c-4522-4427-8a3c-2e74f04ebeb0","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":216,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"8ec67302-d7f9-434e-a5c1-683ad49716d0","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":216,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"a607d271-3268-4854-b936-f751a8f24898","block_type":"box","text":"When casting vote decisions on behalf of clients on the election of directors, some of the factors that speak to","page_number":216,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"1213507f-4a42-4c7e-948f-5d3a0bb81dc6","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":216,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"910c4b33-b0ba-4213-94b6-ef2cccd7b90c","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":216,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"09c7a3fa-0343-4209-a9fa-faf30a0ff06d","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":216,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"d69277e7-95f1-49ca-ad47-eaa9ec705521","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":216,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"61343725-6bc7-4342-a00c-a39ba5d0135f","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":216,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"0b0e1bb5-3ac8-4b6c-a907-70789a8c77d5","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":216,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"2487769b-e863-4ca5-9560-0efae886ebad","block_type":"box","text":"Regular accountability through director elections","page_number":216,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"459dd2ea-54b8-4168-acaf-6242cc533b56","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":216,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"f80e5902-3645-466f-b5d3-7cee54da0836","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":216,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"4d7f63e1-5679-4ef5-a85e-b1e8777e9810","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":216,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"b2125a8f-97cb-4fe9-91a5-0db87640033d","block_type":"box","text":"5","page_number":216,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"f4fe58bc-c1e3-4cfa-bf06-be52af1582e1","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":216,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"167585bb-6c18-4e77-ac3a-7af04f5b3972","block_type":"box","text":"decisions in a timely manner. When board members are not elected annually, we consider it good practice for boards","page_number":216,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"3ba7c11c-285c-40f5-8cda-589d37846ee3","block_type":"box","text":"to have a rotation policy to ensure that, through a board cycle, all directors have had their appointment re-confirmed,","page_number":216,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"ae1a62f7-7e1a-4668-b24a-209f1f12f129","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":216,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"13a86dd9-7903-4355-90e5-c67358558eda","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":216,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"5cbbe1c1-e8c7-42f8-b49b-c5d4fb1f90c4","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":216,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"aeda93fc-575f-4595-90c3-afbaec4783bc","block_type":"box","text":"developments in the company’s strategy and the market environment. In our view, it is beneficial for new directors to","page_number":216,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"1467735e-cacd-46dd-8c92-bd8e096fd025","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":216,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"0e493266-4c06-48e8-8444-f79d7aa9bbeb","block_type":"box","text":"5","page_number":216,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"393fec1d-375d-4e4b-8f20-5d6347aa933e","block_type":"box","text":"In most markets, directors stand for re-election on an annual or triennial basis, as determined by corporate law,","page_number":216,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"1d8cc36c-083a-4dd1-94b0-bfc1c88c7843","block_type":"box","text":"market regulation or voluntary best practice.","page_number":216,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"9c39ad23-e93b-4851-bcfc-f3352107cf5c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d397dbe2-1b64-4132-a28f-0f1570800eb0","block_type":"box","text":"Global Principles | 5","page_number":216,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"961a4f6d-eb46-4e3d-b1bb-372d696010b8","block_type":"box","text":"NM1026U-5982643-216/241","page_number":216,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"63125882-cf00-44e7-8e82-b98f592a99b1","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":217,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"782afd45-0f36-4be1-a1e5-ae0cbc6399c4","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":217,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"26b14801-8301-44ca-88ef-5a14cec8a280","block_type":"box","text":"recently.","page_number":217,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"4b2d6d56-b66e-49a3-a6d2-65bf4442a7b7","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":217,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"a988c151-631c-4ab5-a111-5bb819cb56d9","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":217,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"368a742d-3b7c-4480-b363-5245929c2cb1","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":217,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"50865b8d-0b05-4c42-8590-e0b80d837f8f","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":217,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"d8ef64da-49a1-4c89-8129-4f4522f5132f","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":217,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"ad5bdda3-cd67-495d-b740-00d598501734","block_type":"box","text":"Director independence","page_number":217,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"7a5b2f2d-e16b-49f9-aebf-2f5ed89aa96a","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":217,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"72db0508-6c3f-4549-a374-347269fb9802","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":217,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"a9fcbf0a-f220-41ed-9888-5bf59b49aa95","block_type":"box","text":"6","page_number":217,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"d6c61f0e-1109-42b0-9436-467aa0836832","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":217,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"c0f81ea4-ed56-4f1c-ba6f-aaa99169c31a","block_type":"box","text":"directors, free from conflicts of interest or undue influence, to ensure objectivity in the decision-making of the board","page_number":217,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"964199bf-77ee-4d90-9b6f-6cfa8f0e3bba","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":217,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"4eb7c757-e04a-44f0-abe8-13e4130f197c","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":217,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"61a27816-d955-46ba-b9bc-b48f28912258","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":217,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"02a026c4-2829-4f05-9a80-c633c2c60ebd","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"9d7583a2-c4f1-4fd6-9701-1d47d4be7a60","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":217,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"505aa80c-c9c7-43a8-be0f-e851b4b764ff","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"7bd07f8e-51fe-43c6-b7e3-9469c73d77ca","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":217,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"2f3b0775-3226-4ec1-9d98-e77c73e2653f","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"9aa56c5b-4ede-4e77-aaf0-240d783a4567","block_type":"box","text":"Interlocking directorates","page_number":217,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"c4a96710-1ab7-41c8-97bc-ab03098ad518","block_type":"box","text":"•","page_number":217,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"7ff84421-370d-45d4-98d7-cc632785ce42","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":217,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"04d901f0-8dd0-4c6f-9b81-67538ec2ba0f","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":217,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"85986d99-3d04-4f92-b81a-f35e9b319fd8","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":217,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"1d8fd286-5d95-4d84-9fd8-b336355e550c","block_type":"box","text":"independent board leader. This director may chair the board, or, where the chair is also the CEO (or is otherwise not","page_number":217,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"60ddf3a9-07e0-4d39-b7e0-912d425525fc","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":217,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"7b7c9868-6954-4f49-ad13-e29e23aba6d8","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":217,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"b8c1680e-8049-43c0-a9fa-52fe563019e9","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":217,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"779683f3-a6f4-4507-9989-1efb89412c6a","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":217,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"ea51189a-2b8b-45c0-b617-abd0081afe1b","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":217,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"f53e4027-0b83-4397-bec1-ffa1c619e510","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":217,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"4ae7b63a-0c80-4517-8807-4c5351d37873","block_type":"box","text":"require additional focus. It is our view that objective oversight of such matters is best achieved when the board forms","page_number":217,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"d620f070-c2fa-4a02-955a-c3afca6d0f4d","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":217,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"e2453247-6597-4f8a-b6b0-1faf845c7efd","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":217,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"9836c43c-3d0a-48d0-91e8-ddd6ff7ee0f7","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":217,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"1b964764-1da3-4549-aefb-fc0afb5bddf3","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":217,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"1a37a3a8-8e9e-4f18-af7d-9fa40fa6d451","block_type":"box","text":"Sufficient capacity","page_number":217,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"7ef95dd3-f023-4de3-9413-1b3b35ff0b4f","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":217,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"e93e43c2-a0e2-4b5a-994f-bfead1067761","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":217,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"5042df2e-c938-4f4b-9afd-2eafce83f4fa","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":217,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"8d055193-f71b-4d2f-947e-d06f47bcfbaa","block_type":"box","text":"practice when they don’t take on an excessive number of roles that would impair their ability to fulfill their duties.","page_number":217,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"308c36b4-af9a-42c3-88f7-8974ddda57ec","block_type":"box","text":"Board composition","page_number":217,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"712f6ef3-6bdc-49fa-a57a-fab5a9692a41","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":217,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"6805171c-ac78-4247-87d7-20a6748be049","block_type":"box","text":"capitalization, and ownership structure, as well as the market in which the company operates. We find it helpful when","page_number":217,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"62694b65-c766-4adb-852e-91101a448b65","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":217,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"a39d7b1b-a30e-4540-be8d-eedec233949f","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":217,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"9051f1ab-8399-4a4e-927f-42bbb8ecf9d6","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":217,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"7d9c39e1-6707-4b09-a3d3-5f77e19dafee","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":217,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"eb668fc7-ef0a-4bb0-9f8e-f79d5ccd6226","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":217,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"9a2ee42f-c2dd-471c-9814-0ba50fc60fc0","block_type":"box","text":"6","page_number":217,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"abe3e3a7-604c-4904-b2b3-b4fe1546fd78","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":217,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"03c8ab98-a6af-4050-b4f5-9a5988ef3111","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":217,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"42957b63-33c7-4cdb-8196-a8918fd2c094","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f949aa18-680f-4160-8206-b8fbe2d0bc26","block_type":"box","text":"Global Principles | 6","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"cc152475-07cd-4dbd-911c-75f287e594d2","block_type":"box","text":"NM1026U-5982643-217/241","page_number":217,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"49908997-57ec-45c9-808c-489eb4a9e670","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":218,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"331c5213-e406-479b-b547-cb951157ad05","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":218,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"d5df18eb-96cd-46fc-9760-f8bdb7801105","block_type":"box","text":"It is in this context that we are interested in a variety of experiences, perspectives, and skillsets in the board","page_number":218,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"4642899f-249a-4751-a3b1-97ebcd76501b","block_type":"box","text":"room. We see it as a means of avoiding “group think” in the board’s exercise of its responsibilities to advise and","page_number":218,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"45c2d6cb-0a77-4e36-b93d-87d4e634d346","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":218,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"f747214d-bbab-43ee-bb0e-6cb91cd5fb3f","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":218,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"546ac329-d42c-4c31-9ebe-d715d2efac1c","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":218,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"b70475e8-ec5c-45e5-b12c-df207d6af680","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":218,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"007217bb-d37b-44da-958f-bcd4299cd8b4","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":218,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"08d6b2f3-04e2-42e7-9d09-2a9bae12527d","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":218,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"de5db8b3-8e1a-4bcc-8e76-d6c36719f8e2","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":218,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"f9121e96-8c3f-4cad-b085-37abd4101665","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":218,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"b1bd36d3-e447-4a2a-9873-96ba21959696","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":218,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"b1616d56-2d23-4781-b95e-8edb62ca3e01","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":218,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"f788eb2d-e89e-4851-9ce5-02c87dbd11f6","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":218,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"c321f0ac-f6b7-4262-a4f0-9d13d7a0ff8a","block_type":"box","text":"systems.","page_number":218,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"c1ea20e2-4fd8-42b1-b12f-c45efbcad1c7","block_type":"box","text":"7","page_number":218,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"c3e47476-18ed-4206-b395-11123722ecbf","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":218,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"e7e87c6d-c274-4558-8362-52b4ba6954a1","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":218,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"497bdc5e-61b7-4bfc-b46b-0ba20aaecfdb","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":218,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"b4283e2f-0023-4ad5-a635-b07494052d80","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":218,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"5e0ca4a5-19f6-4d83-99f2-b1b684a3fc4c","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":218,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"cb723699-c204-48ba-b14d-cbebaf25f2f1","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":218,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"55358b7d-d4de-49cb-8d63-fe2a80292472","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":218,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"97c5db71-72e1-4a6a-86f9-5b0f09b9570b","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":218,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"476e2686-dda8-4345-92a2-a4686f0069f5","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":218,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"15135ec4-88e7-4655-897b-05c8dbeefcc4","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":218,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"af98b01d-7701-49da-afc5-28de2195dab4","block_type":"box","text":"or internal audit function.","page_number":218,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"84bb0b66-6599-45f2-9d70-5844260db646","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":218,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"c6b5040e-8689-4972-a883-0fccdea66d62","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":218,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"e53f6a89-f73b-4dbf-ab71-1d19532603e7","block_type":"box","text":"and are seen to be, independent. Where an audit firm provides services to the company in addition to the audit, we","page_number":218,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"e8fa4951-1458-45f7-87a2-bad1443142fa","block_type":"box","text":"look for the fees earned to be disclosed and explained. We look for audit committees to have in place a procedure for","page_number":218,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"ba36dc68-5f77-4661-a56b-0cc79303b821","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":218,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"42d7172d-90c3-4a92-afbc-eac9f80ba7c6","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":218,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"8d8fd354-7856-4e7a-8b9d-c2c6001c7f73","block_type":"box","text":"management practices and, more broadly, the quality of the board’s oversight. We look to the audit or risk committee","page_number":218,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"417a30a1-a20a-4185-abc7-339eddeb684d","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":218,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"958b861b-e229-4d79-8cba-06309cb6558d","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":218,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"4391cc7b-46a8-4d3b-bd20-6e6925b26746","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":218,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"4560131f-dc37-4c20-a93c-ee235e34d506","block_type":"box","text":"risk.","page_number":218,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"9613586f-593d-4a3c-9bb0-ecdfd744abc1","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":218,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"66134bc9-b326-4460-b672-6684b552c1be","block_type":"box","text":"The capital structure of a company is critical to shareholders as it impacts the value of their investment and the","page_number":218,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"ba7e9e99-8498-4354-944d-f16a7331a315","block_type":"box","text":"priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key","page_number":218,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"5e2fbb59-ae24-48d2-83f9-d5c1bd37af8f","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":218,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"a33fc173-110c-4004-832c-46f7508002e5","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":218,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"4846e327-84d5-49ad-ad67-5b15c01046e9","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":218,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"f6b5c7f5-9bb1-41b1-ade7-c11dda537aee","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":218,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"851eb1df-80a0-413f-b4f8-2823a785d3ea","block_type":"box","text":"7","page_number":218,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"ab1642eb-3643-46a9-ae21-a03792732470","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":218,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"df4b6ce7-a728-4965-83c6-0d987697a0a6","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":218,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"893708fd-7900-4b3f-836e-ac6be3904ef3","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":218,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"6e64ef14-0d7c-4d10-8169-e6f6d51149e8","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":218,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"4c5803d1-57d9-435f-b7fe-3e637f816bc3","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":218,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"fc36f167-c8bd-4e14-b2ff-547a04bcf3ef","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2d8af394-7abb-44ee-9d31-69495e8062ec","block_type":"box","text":"Global Principles | 7","page_number":218,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"b473b333-639b-4792-a92c-253162fb8666","block_type":"box","text":"NM1026U-5982643-218/241","page_number":218,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"8727f04c-0dd8-4b16-8983-4b202272d9f6","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":219,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"1b694720-1846-47b4-acac-2b95097edd7e","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":219,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"df41e050-dc05-4518-8fb3-8bdf42c738cb","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":219,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"ac9b48dd-dff7-47c4-8a79-bb10bff864db","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":219,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"0a64cf43-dc78-427f-be18-4bcf4252d7f1","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":219,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"a32556bd-0863-4258-855c-ea43af1fa96e","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":219,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"58b998c6-8459-48f1-9a33-57ce0cde54b6","block_type":"box","text":"minimizing costs to shareholders.","page_number":219,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"496dca4d-daa3-49bb-95ea-aeab32cce0b5","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":219,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"3a7fe229-b088-48e8-9397-7e1ce6b6ac66","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":219,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"380a1fe6-9cdd-4141-94eb-76d5866cb162","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":219,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"8813893d-885d-4152-9bc7-f3ea693971de","block_type":"box","text":"board and has been negotiated at arm’s length, and whether the board or management has clearly explained its","page_number":219,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"91e16b4a-eef4-4eb9-bd4b-5ca41c0f5537","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":219,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"a5d7c3e1-31ee-45e5-8ef3-c03abe18fef0","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":219,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"b3d01f70-baaa-40d6-943b-078c35b75a21","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":219,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"34264034-78e8-4610-a44c-89f06303f9d0","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":219,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"fb88f6e5-4635-41eb-9d2d-29adae504564","block_type":"box","text":"have been assessed through an independent appraisal process. In addition, it is good practice that it be approved by","page_number":219,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"80fc224e-ede9-4139-ad10-75fa79a27ae5","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":219,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"1ecdd3f8-bd15-4448-98a8-c7897e1323d0","block_type":"box","text":"As a matter of sound governance practice, shareholders should have a right to dispose of company shares in the","page_number":219,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"65ffe10b-3475-4a83-90dd-392ce65d54da","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":219,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"88c5333d-b7f9-42f9-bfa7-4d6ae0ce363d","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":219,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"04a3270b-f64e-4628-bc47-10da3d1d66f6","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":219,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"e13e049b-87b7-430d-ad1e-2316c75c0bf5","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":219,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"b2123145-fbb9-414d-8ef9-8d6c22c36682","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":219,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"cb3a92f2-35d2-4096-87b0-6cac1c95fb1d","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":219,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"bdb158a6-d7b6-4927-bc38-a6e30dd587d5","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":219,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"28161de1-5632-4ae1-a847-9dc9f8bea3c4","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":219,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"3e85c48d-b701-4293-b803-362e1da1c686","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":219,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"9a5b538b-ad5c-44e5-9888-a48c6dabd92c","block_type":"box","text":"ownership.","page_number":219,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"41886821-e2e4-4db6-867d-e7cc0e82e121","block_type":"box","text":"8","page_number":219,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"c0914488-2d32-413e-9235-763319fe65f5","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":219,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"c7fc4fe7-4f7a-4dba-a982-17beb018be1d","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":219,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"4528e019-eac5-470c-9504-4197dc268a8b","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":219,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"ef445fa4-37b0-426b-8c6f-6f1743ab2beb","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":219,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"0f9cf0c6-5d6d-4579-9e6a-1e1dbecf387f","block_type":"box","text":"structures, but, where they are included, we look to companies to be as rigorous as they would be in setting other","page_number":219,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"b502e39e-ef0e-49af-b625-870a5c6aed9b","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":219,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"0129067a-73c1-4f84-8ed3-7131d2eaeb32","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":219,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"0f97cc21-9b9e-42ed-9c76-e68d52969b57","block_type":"box","text":"results over a period of years.","page_number":219,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"d6f28a87-bd3f-4c85-9475-54b227e2232a","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":219,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"7bdcbd9d-24a8-4f15-9aaa-6f1048680b99","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":219,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"7775d783-05b8-45a8-a855-d7e6e136175d","block_type":"box","text":"company’s risk profile, the environment it operates in, and the individuals the board is trying to attract and retain. We","page_number":219,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"4e83a78b-1b4e-47db-a04e-6f577d5cacf5","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":219,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"ce4fb7fa-0861-4acc-b5c2-9130cfd8915c","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":219,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"1369b344-44eb-4bdf-b7eb-9186ab720f71","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":219,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"c0c23e0e-36a4-47ca-a697-f5df6b409009","block_type":"box","text":"executive compensation strategies.","page_number":219,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"95808163-a16d-4c99-bea0-623605e40a98","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":219,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"2adb4997-888a-4151-b1cc-782cb693ab1d","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":219,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"bc1c165a-2889-4179-95b0-43e92ac17ca0","block_type":"box","text":"and why the discretion was used, and how the adjusted outcome is aligned with the interests of shareholders. In","page_number":219,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"4f46dd53-476c-4ceb-94da-5d82f83dc566","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":219,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"e25a7f0b-17b9-452d-9ccd-0f79ca78870e","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":219,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"8d163c6a-04b2-4714-ba4a-e9fbb1fe23ef","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":219,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"88815b79-5f41-4a38-9afd-08bc7e3bcadc","block_type":"box","text":"8","page_number":219,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"2c06a89b-4428-4428-9c6a-bc5eef8bda2a","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":219,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"a7651c94-ee74-4d5a-b76b-a6185af49331","block_type":"box","text":"different markets.","page_number":219,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"1a5c0a74-1c08-408c-9487-f01e267ca1b8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"75357a57-c4d5-4d48-8241-b565c5663080","block_type":"box","text":"Global Principles | 8","page_number":219,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"96ee33d6-fd80-47b7-b04c-55b0cd1d2e3a","block_type":"box","text":"NM1026U-5982643-219/241","page_number":219,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"b44ac676-165e-424b-a6fe-051158d0b81b","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":220,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"ae7dc75f-89be-47be-89b5-2102774df2d8","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":220,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"4c1ebd8e-e49c-4290-8921-a192b3b2a62f","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":220,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"3f587dad-ba76-47d4-9f09-7501d63cec6e","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":220,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"fb293f54-e6aa-4c34-9fdc-a0ec41687cca","block_type":"box","text":"In our view, non-executive directors should be compensated in a manner that is commensurate with the time and","page_number":220,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"4c43c012-de69-4a88-983c-58ff6d69a4a4","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":220,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"c487cf77-a4fd-4c9c-99c6-1f4e63ef9131","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":220,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"248f48c1-2ba5-45a5-9740-d596df70aa92","block_type":"box","text":"whom they are charged with overseeing.","page_number":220,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"73128385-fe20-4df3-98ec-012e73a371e1","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":220,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"46fad272-1e12-4365-8724-db996b3df00e","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":220,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"6b1649b1-b157-40f9-bbb6-c2a1ceb028c7","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":220,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"0a81ce37-3005-4032-9cd7-414399644578","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":220,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"ab71ec47-0199-4ab8-b4b7-1a3e9e250904","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":220,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"962e40fa-f791-401d-be99-b9e1a12b7580","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":220,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"59ba66e0-b607-4309-9d36-97850932e34f","block_type":"box","text":"structures.","page_number":220,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"f0094ca8-ff22-4bb6-b26f-b7a0220a536d","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":220,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"b5c2f8c5-a0d6-41dc-ba4b-3332fc7a3cf7","block_type":"box","text":"Corporate form","page_number":220,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"c2adc80e-f951-4274-b303-d8cc29a5f73f","block_type":"box","text":"In our view, it is the responsibility of the board to determine the corporate form that is most appropriate given","page_number":220,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"2e101451-9d76-4776-9e4e-4b15fc10e070","block_type":"box","text":"the company’s purpose and business model.","page_number":220,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"bb2afc5b-2715-48fd-b713-4f74b66275e6","block_type":"box","text":"9","page_number":220,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"2616fa94-4620-416d-901b-040e924e9b99","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":220,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"1a9e5392-622c-4aad-b7f5-cefde909741b","block_type":"box","text":"public benefit corporation, or similar entity, to put it to a shareholder vote if not already required to do so under","page_number":220,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"b98cc98e-90da-4c04-aa34-379943a2e910","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":220,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"c4627473-619c-44f2-b1cf-5f8a9c248046","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":220,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"32712d1e-499b-4b18-a135-95747dc61e95","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":220,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"9f8d66e6-d71d-46d1-a67c-b9c0afa72ccd","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":220,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"dcc74b1b-a0f7-40f7-a51d-026f59c3fbf8","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":220,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"18837d86-b9ac-4486-9278-3bd8e0e30bf7","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":220,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"1e984f35-79bc-411c-9035-d659cc231dc7","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":220,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"6fbf2cb1-4513-4ffb-a4c6-7dc03e02e30e","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":220,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"d1eed738-981a-43a4-8ef5-600f8eaf128a","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":220,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"b9b32c0f-0acc-4e15-8668-597ca118ca22","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":220,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"7b26c40d-894b-4ea7-8818-16699ca9c57e","block_type":"box","text":"BIS takes a case-by-case approach to voting on shareholder proposals and maintains a singular focus on the","page_number":220,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"8768f842-8ca7-49e4-ae42-42f18238d8ed","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":220,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"19c47d5e-4a6f-4298-aecf-0db711af655a","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":220,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"a5311108-50f0-41a1-9cf1-1730b907329a","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":220,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"2e777117-571a-44ee-8630-ad740e0ade84","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":220,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"fe75d9aa-934e-4f89-8a5d-4f61d14a2f77","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":220,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"d8aa0c45-dd4d-4ba2-8b3f-eca85744e4dd","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":220,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"5dfb5e3c-46d9-432c-8001-e09201ccca66","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":220,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"ac659d6b-acd6-48a2-88f1-6664b99e1620","block_type":"box","text":"benefits to the company of meeting the request made in the proposal. We take into consideration a company’s","page_number":220,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"9ab43b82-f769-4331-9dca-03412662f914","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":220,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"04b7ee2c-edba-4282-a438-a2923ce7343d","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":220,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"2146e225-0928-4ced-934d-600f920b8ccf","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":220,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"b3620b6a-0393-41af-b552-6cee5c2772b9","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":220,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"7edf90cb-e34a-4fdb-9029-4998b86b05db","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":220,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"f36f3f6a-849b-490b-971d-3b2bb54c92eb","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":220,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"24fa01f8-643b-45ec-af32-98bdf21a3653","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":220,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"c1ef6c60-4de1-4eed-946f-3e2181caf406","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":220,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"d6488a64-2526-42f1-96d2-2a121286071e","block_type":"box","text":"request made in the proposal. In voting on behalf of clients, we must vote yes or no on the proposal as phrased by","page_number":220,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"9e27377e-5d7a-497c-a9a7-3a45f031acc4","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":220,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"c0c9423c-3faf-46b4-b7a9-ae120452f4f4","block_type":"box","text":"9","page_number":220,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"87fb8aca-b59e-40f8-904d-2414a3fb7714","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":220,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"8e982624-2119-4914-b6b1-784563a6c8c5","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7e085324-2be7-4dfb-9669-1195859f3ded","block_type":"box","text":"Global Principles | 9","page_number":220,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"49e0bbe4-6677-4191-850b-7fe17bf7de12","block_type":"box","text":"NM1026U-5982643-220/241","page_number":220,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"283ee047-ae01-4a8f-b6df-169d6402becb","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":221,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"85a77004-8a5a-4671-a052-ac01f931c5d3","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":221,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"51457807-6adf-4701-8744-8e91652f32c0","block_type":"box","text":"long-term financial interests.","page_number":221,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"886f355d-85c5-498d-b683-d592fbf1e009","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":221,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"1766e432-ae76-42a9-999f-597fc16a4c1b","block_type":"box","text":"restrictions and limitations on how BlackRock can interact with the companies in which we invest on behalf of our","page_number":221,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"7d559e36-ea86-4e0c-a53f-5843af17571a","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":221,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"db5e2dd2-3882-4885-81d9-caf643789ada","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":221,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"6b809d70-d1c0-4f64-a981-930459204008","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":221,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"117d9cf7-4385-4a3c-91e4-d9685e78b268","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":221,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"01e2a851-ec64-4c81-b31e-b70ddab1e847","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":221,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"561c9c3f-e495-40db-96d9-dd13e4629361","block_type":"box","text":"term financial value creation.","page_number":221,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"174bbb2c-9070-4038-8fac-434908f23777","block_type":"box","text":"10","page_number":221,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"b4d264d5-530d-472a-b610-bb180a91ba76","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":221,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"612b1612-ae4d-45cd-bd96-25d0216b45f4","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":221,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"97a55376-056f-4d28-bd47-7e4ff11c0c8c","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":221,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"e585f00a-09c9-4f37-a25b-bc0f77b397a2","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":221,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"c10e5cc5-29e3-467b-8177-8ca705a58ada","block_type":"box","text":"industry-specific metrics.","page_number":221,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"c9b6bc92-3a92-4fdf-ba21-95d58d2771eb","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":221,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"8a25a281-9e2a-4b54-b66b-a7c790fe7659","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":221,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"12d3a935-e174-45f4-914c-1d4687348e66","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":221,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"5d7d4afb-ef87-428a-98e5-610b50228e77","block_type":"box","text":"11","page_number":221,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"8108ced6-114b-424c-addd-c159b423a2d9","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":221,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"3da643c2-3ba9-459d-b582-f48be8718f5b","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":221,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"505acaff-e58b-4dab-877e-157f6c7479c7","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":221,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"657bb25d-710f-42d2-a451-fe9072f5baa1","block_type":"box","text":"specific.","page_number":221,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"e6a92141-a78e-418f-875c-8ec008d5938b","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":221,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"7fe4ad88-08e2-4d75-abc3-9645aac67e9c","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":221,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"b5d9bbbc-9b40-4824-931d-fa18a1d73a1d","block_type":"box","text":"them sufficiently in advance of their shareholder meeting, to the best of their abilities, to provide investors with time","page_number":221,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"c07b04ec-afca-4194-ab6a-065022b3c387","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":221,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"7f28767b-fa3a-4de4-928d-e72fadb4f6bc","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":221,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"54da1acd-de1a-4c7d-85e6-da7e3ef18dc5","block_type":"box","text":"best practices and disclosures. While not a voting item, we find it helpful to our understanding of investment risk","page_number":221,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"deb84dd6-044d-4d93-90a4-bdde8994d332","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":221,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"118b1a76-c23d-461e-879a-48a91abdf171","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":221,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"8d671856-59f0-4a67-a844-ee45560f2e34","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":221,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"79b0e7d5-1598-48b7-b4f1-6e623997957e","block_type":"box","text":"10","page_number":221,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"fe2ee420-e45f-4ad5-ad9a-d35b18b7217d","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":221,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"277afa88-7d0a-455a-b645-36386ae7c5c8","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":221,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"899eaf01-a6b6-4698-bb55-89cec5028187","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":221,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"53cbb7ff-4513-493c-9d27-760086d080f3","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":221,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"cc27b159-3f0a-47a1-bf73-a9b84e2e4aea","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":221,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"aa983759-ecf9-4ee2-8cad-0798d8c90315","block_type":"box","text":"11","page_number":221,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"4f0bed9e-56d5-4850-b978-47e2cdcea6a0","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":221,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"183f5525-a161-4d8b-a93c-c88539644980","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":221,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"b99c5c83-8d45-46a9-9e65-334fd4c493f0","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":221,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"2448a13f-3366-404b-88c6-edfa3d9d0170","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":221,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"ad6eaab3-0f82-4e31-a8d1-bdd99d635638","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":221,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"195228b0-c239-46a9-87c2-1ac6783c1fe0","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":221,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"789a675e-9886-4c39-b61f-ac7566978977","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f8e2853e-5493-4446-9d94-ee0fe8d2da81","block_type":"box","text":"Global Principles | 10","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"145d8717-eba1-4316-bdec-ffad4e16e4a6","block_type":"box","text":"NM1026U-5982643-221/241","page_number":221,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"a37d4c6b-2ca8-4b56-9481-9718d81ccd1c","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":222,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"f60e307a-7b96-4cb7-a1db-2d9167fb08e9","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":222,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"95a8031a-2ba1-408d-8f36-bc14fb57b8ba","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":222,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"d649f65c-e292-4028-82ca-68462513b84c","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":222,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"43fe435e-d67b-4817-aedd-0237d3d3b5a1","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":222,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"474c9c0c-523c-4b2d-a31c-08e8884c507d","block_type":"box","text":"12, 13","page_number":222,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"fe0e3071-927a-47a1-80b8-8034eb5cffe3","block_type":"box","text":"From company disclosures and","page_number":222,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"75f48d0b-846e-46ee-8900-fb82c4b486e1","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":222,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"310d4867-52b5-4e49-b030-1bc96f7ecd31","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":222,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"2075aae5-324d-4028-863b-d167bd6e1688","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":222,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"ae3256d6-f690-425e-b271-c69c40886e6f","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":222,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"13eefdd7-af58-4cc8-9cdb-8eb1ab0c209d","block_type":"box","text":"viewed as best practice in the market.","page_number":222,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"34b5631d-fa3e-4471-aa4f-404ddb5322b2","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":222,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"af1b189d-e97e-4c0b-aadc-d70d1a1b3b5a","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":222,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"295adc75-e723-4846-b281-72832c7065a9","block_type":"box","text":"with insights into how companies are managing the risks associated with a transition to a low-carbon economy by","page_number":222,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"de322a51-f405-47a6-bf44-c8e920fc66fb","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":222,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"e9783954-de6b-4482-aad8-4f47c007906a","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":222,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"6208af77-ca88-4fa1-af88-b19d32c7dcaa","block_type":"box","text":"long-term targets, ideally science-based where these are available for their sector, for scope 1 and 2 greenhouse gas","page_number":222,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"03e10fc7-3dd4-439e-b639-04a9a60ab069","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":222,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"b12608b4-4301-451f-b92c-8ad6a25e2395","block_type":"box","text":"interests of their investors.","page_number":222,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"486335d9-7a09-4276-aeb6-a7f916cd86ec","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":222,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"a0bf4b6e-23bc-44d7-af20-40c5eb5534b6","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":222,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"baa26cc8-2908-4c0f-a28e-8b88d375cce2","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":222,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"03b08e37-aaec-404d-a19c-02232db7c5b5","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":222,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"c6166e61-1b01-48d4-8e2b-552edbd3643b","block_type":"box","text":"good-faith basis as methodology develops.","page_number":222,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"0d08136e-dfa2-49bc-927d-129614b75a43","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":222,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"eb677c4e-2e34-430b-8f1f-b469bb7ae4f6","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":222,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"463c492c-f966-43d7-bf73-d4de098f41cb","block_type":"box","text":"generate long-term financial returns.","page_number":222,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"89a6c5e0-68bf-4002-87fd-63b0283aef15","block_type":"box","text":"14","page_number":222,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"188f9e99-432f-4a36-bb78-b5f5349b0082","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":222,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"28c1896f-a089-4e34-8cd5-986a62e0c16a","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":222,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"149a8c74-8832-4b31-8169-97f758aa60f1","block_type":"box","text":"15","page_number":222,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"dcec17b2-afdb-4e02-8302-397af6a673b4","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":222,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"c776d500-e19f-4171-837c-f0c584717ec4","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":222,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"0330e5fb-865e-4240-987b-c6757fce8ad7","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":222,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"470ab6a0-2c0e-49d9-847b-05489f5e1151","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":222,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"679f0d6a-3b71-4156-befe-6f369c5ab2f5","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":222,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"c5f448ca-5330-46b2-8e35-5c0a3245e7d7","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":222,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"8d3c9d22-f296-45ce-9fbd-1de6b6cc72e2","block_type":"box","text":"12","page_number":222,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"3862588d-17da-486f-b6bf-821afa3a19ef","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":222,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"b80f07d0-aedf-4102-9f40-28d86d6ee09b","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":222,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"038dded6-7953-4c7c-8d22-5ca14da7ebff","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":222,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"0cdc3d93-1370-483f-9d88-466c0472fa4b","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":222,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"7ae6b5d1-070e-423a-a91a-257620c36d1f","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":222,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"344c9991-9d79-4065-ad5a-ffd98d6be14a","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":222,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"a59d5ce3-2fcb-42fe-b9bd-c39f54ed3ded","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":222,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"ee8b8493-fbd3-4ded-86c9-9a63d251d2ff","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":222,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"c635ef41-20a5-4c52-a32e-0aa1a3f4f1a3","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":222,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"6b305e7a-03ce-466f-a634-e69dce68e3cd","block_type":"box","text":"13","page_number":222,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"8b680097-5ad0-4762-a81c-a62e24d99e36","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":222,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"24040d22-5425-4af8-8038-ecfcd423c54a","block_type":"box","text":"2025.","page_number":222,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"89e547bb-02e4-4aaa-91cb-85ae0cfe650c","block_type":"box","text":"14","page_number":222,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"5ecc0367-7829-4a61-844d-303465cd0383","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":222,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"d8427ed5-8806-4920-a2bd-682471b94d6c","block_type":"box","text":"2025.","page_number":222,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"ffb9378b-fc43-4f61-8894-2443dd2c8631","block_type":"box","text":"15","page_number":222,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"d0389e69-ca33-4245-acc3-6eafb8158f74","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":222,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"9c2a1fcc-e649-45ca-a19e-7fb8c272ddd6","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":222,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"587c0476-489c-4854-8d26-9d103a786312","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":222,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"b7f59c02-88a0-435b-8e1e-270cd8b5f517","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":222,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"cdb1924f-3930-4925-82e0-2388ebaba050","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":222,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"453905e5-18b9-4e07-83dd-6cf885a32570","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f1b267d2-13f2-4bea-861e-49c327f2bdcd","block_type":"box","text":"Global Principles | 11","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"5eef6740-b82b-41f6-ac0f-4ea1badd63de","block_type":"box","text":"NM1026U-5982643-222/241","page_number":222,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"c54b1ddd-eeab-4422-bff9-763d7c079f43","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":223,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"4eeb6f43-cc0d-4541-9977-1a0a552576fc","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":223,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"bdefd8ad-4358-494c-a353-77afbc350738","block_type":"box","text":"16","page_number":223,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"6ac9d978-634f-4667-8437-5122580d7da9","block_type":"box","text":"As a long-term shareholder on behalf of our clients, we find it helpful when companies disclose how they have","page_number":223,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"b77c34d3-e0ed-4d10-bac2-7496da7ed1bf","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":223,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"536d897e-a731-4791-833e-49f71bb8c30c","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":223,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"201c87d6-54d2-44e0-b85f-d2987776cdfe","block_type":"box","text":"needs of their workforce today, and the skills required for their future business strategy. We are also interested in","page_number":223,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"cbf0bfd9-48cf-4631-9a85-ec59d6f83f90","block_type":"box","text":"understanding how the board monitors and engages on these matters, given it is well positioned to ensure that the","page_number":223,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"c3176e00-f64b-4446-96e5-ec8f821f1d44","block_type":"box","text":"approach taken by management is informed by and aligns with the company’s strategy. BIS does not direct a","page_number":223,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"d8004640-6169-4513-8faf-3e149e52ba71","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":223,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"194da913-3155-4f18-b87f-b144218ee41b","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":223,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"24d9c927-c093-4a23-a720-95f66a7fce90","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":223,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"51614983-5a7e-4dae-b5fb-b3d1284e1c95","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":223,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"86b0d58d-e81e-427f-a272-04e71030a43d","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":223,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"e00d5d75-f8cf-46c0-84e1-206d97fb3065","block_type":"box","text":"impacts.","page_number":223,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"62af65ce-f3c5-4cc2-95e5-ce7978f05dd7","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":223,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"94589d8c-d4d9-4269-8572-40e9ebd91af2","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":223,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"dad5219d-0555-4542-8f21-81e22d8e5654","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":223,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"2ac09f07-3e77-4d1e-94fd-52c49211d85f","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":223,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"67de01a8-35ba-4c29-8326-828aa3f70176","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":223,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"5362ac54-1399-4d15-84af-502bcd14b7a6","block_type":"box","text":"clients at the global and regional level.","page_number":223,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"989e611c-4960-47f3-877a-680d80e49f4b","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":223,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"1baa242a-861e-4df5-b292-b8a3c3a12296","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":223,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"01f42452-7d60-4599-b242-0cc5df6691e5","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":223,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"c6a3a944-380c-48c8-9f38-7494aa2bff6f","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":223,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"4a101c13-6cb9-4a6f-a612-12948559e8b6","block_type":"box","text":"BIS on behalf of clients, as well as updates on material process issues, procedural changes, and other risk oversight","page_number":223,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"6bf430b5-0573-4c96-842d-95f2c6823a22","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":223,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"fb6315cc-df7d-4866-8326-72c4238f2743","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":223,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"fc7ababf-85d0-48d7-ba3c-7d178b89c58b","block_type":"box","text":"are independent from the investment stewardship function.","page_number":223,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"cb4de9fe-7e48-48c0-838d-19c812fc8c90","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":223,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"1ad0b4b9-3507-4444-83e3-faa696e703d8","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":223,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"f707c8bf-718b-4eea-abfd-9d7ceda439ad","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":223,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"042552e5-1bc5-463a-bdc9-f47b2f4e6ef5","block_type":"box","text":"VOTE EXECUTION","page_number":223,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"23b3fa97-fdbb-4ada-9cad-ff0ba52ab498","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":223,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"a29127fc-6a35-484f-8528-150242ae5daa","block_type":"box","text":"processes in place to consider all proxies for which we have voting authority, and submit voting decisions, or refrain","page_number":223,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"3600a5dc-40b3-4116-a98d-8b4d38e76b14","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":223,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"f3b48c2e-1e7a-4223-a031-2b0c7b50818d","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":223,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"c95fdbdf-00e3-49ae-931d-3521e7976a9c","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":223,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"5ef6f986-04e8-43a2-b400-e4c438d06b03","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":223,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"fa924e3f-9189-4171-851e-128d9f316e12","block_type":"box","text":"management policies and procedures,” below).","page_number":223,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"0d891ad4-4f6b-4a72-abf9-e6d8c81bd9de","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":223,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"f81dd81d-d5c4-4a79-8a35-2a8c94b41d23","block_type":"box","text":"of voting such proxies on behalf of our clients. These issues include, but are not limited to: 1) untimely notice of","page_number":223,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"877a4b0a-bb6f-445c-af87-ffecf58040c5","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":223,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"5f19042b-0e85-4d74-8fb9-707d454c50f1","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":223,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"b5ce4574-b96e-4614-b182-616a58f0d9ed","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the after the shareholder meeting","page_number":223,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"f54894b7-9247-468b-8cc5-8d21e8a86197","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":223,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"001208b9-2b44-4cb4-828f-fe4c4086b337","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":223,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"ba6012fc-17e0-4a40-bac9-7094ffdcd870","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":223,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"65980afc-a10c-4c7c-bb99-f2f99b1f88c0","block_type":"box","text":"16","page_number":223,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"fd9e125f-404e-4e88-aae7-547c28c44455","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":223,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"06581203-8353-4e26-9967-789e89b6d054","block_type":"box","text":"December 2025.","page_number":223,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"06f4fb5c-8f8b-4496-8d2c-2b06fcc19200","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3caa6e1a-478b-4b86-b48f-b1c8d577e206","block_type":"box","text":"Global Principles | 12","page_number":223,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"372d29ab-0331-4058-8f6d-b274174fda49","block_type":"box","text":"NM1026U-5982643-223/241","page_number":223,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"61f55625-8ffd-4578-87e4-e875019a131b","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":224,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"ccbf55d6-9a5d-4464-ae73-88bd3036c413","block_type":"box","text":"in the interests of BlackRock’s clients not to vote proxies (or not to vote our full allocation) if the costs (including but","page_number":224,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"7274eb21-eda9-4e7e-ba9f-5d5ff9f3e8c7","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":224,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"35996226-03ed-4d1c-9f47-23ee6a0272d9","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":224,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"e7d303da-a6c3-431b-b9fa-b0e98d2a0dac","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":224,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"9147defe-f43d-4425-b602-19a7e3093297","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":224,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"0e962811-6f88-4eb9-984d-ea72e34d0590","block_type":"box","text":"enterprise-level vendor management activities.","page_number":224,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"48484358-d4e9-4037-9296-1298fd15265f","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":224,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"8af5cd69-bee4-4fa1-89dc-b05d7f2d1395","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":224,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"63dd1674-8069-49ad-b2c4-867e5e42ef02","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":224,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"13132911-1cee-4dae-ab70-85a730b51dfb","block_type":"box","text":"BlackRock employees.","page_number":224,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"0541caa3-1aba-4365-9d5c-cf5d0036cfc8","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":224,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"1aef0aad-8f33-424e-91a4-f0ab3daab08c","block_type":"box","text":"SECURITIES LENDING","page_number":224,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"18b48c06-f382-4fc4-b38c-0e1fc70eec5e","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":224,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"0efb670b-2265-4eed-93a9-8dae32059826","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":224,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"dffac7eb-27ac-4754-8abd-4a2b303f3f45","block_type":"box","text":"recall securities out on loan at any time. BlackRock (or any other lender) does not retain voting rights for securities","page_number":224,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"2bb87271-b7d7-4a08-a84f-82bb1fc65ba3","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":224,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"1bf922d7-fc71-4212-be40-071192ba13bd","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":224,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"b70530ac-e3ea-4e47-b393-a2d1be7eac44","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":224,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"2d478e63-e8ee-4f01-9cf2-5bb1792eee2d","block_type":"box","text":"loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients","page_number":224,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"50914336-2b74-452c-8f93-5e74946f2682","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":224,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"ab16eb8d-29d5-4da3-b412-aab925c6076e","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":224,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"f2c150c5-33e5-4620-8140-8de6aaa72eb6","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":224,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"80be6f18-d9ab-4bcc-978d-d5317950bd24","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":224,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"0ee1f382-c7f8-4b36-ad14-37b396c48626","block_type":"box","text":"of recall consideration).","page_number":224,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"c2cf4b82-0e57-4c1b-aae5-a2075c891ad1","block_type":"box","text":"17","page_number":224,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"bfaab8b4-1855-4a00-bba2-d97c71a6cc3f","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":224,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"82955189-293d-47ed-af77-96f9478b05e4","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":224,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"4eb33bbf-ebf3-474d-a011-a8da9f04ea66","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":224,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"29acedbd-6dc8-4b31-8545-5577523c8fb5","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":224,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"304c441e-cbf0-4b83-bf09-32ab8e65237e","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":224,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"b9c4023a-27e9-4bd0-9466-face77837590","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":224,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"cd2e4f43-54e5-4c71-be1a-7ba763211463","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":224,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"a8d1cda2-6240-4d7c-ac31-77dbcdfaa348","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":224,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"0e15912e-910a-4410-a2e7-d21c4fb18e55","block_type":"box","text":"and may modify it as necessary.","page_number":224,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"aaec4ad7-2aa7-4e09-b20f-671b9c573e57","block_type":"box","text":"VOTING CHOICE","page_number":224,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"e4e93bc8-0ed0-490a-8328-07a016cefcc3","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":224,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"1f268f24-04a8-42ec-b849-5e8b8f672ff9","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":224,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"f93e2b60-d450-48ce-8375-7b3154191ae8","block_type":"box","text":"18","page_number":224,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"e2da371e-aba3-4e08-8ea4-25b7d451a9ab","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":224,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"4b0ead02-84ac-43b7-a6aa-7e3ccf3250ea","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":224,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"530d3981-8284-421a-acad-bd098423a472","block_type":"box","text":"17","page_number":224,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"7568f446-9c8a-4bd8-8162-2322af5d85d2","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":224,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"fd34af61-dbc6-46e4-aff1-25b9babcb4ba","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":224,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"c004ea73-d8ab-4bac-b53d-9787d36142e3","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":224,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"1b21911e-aae7-4c05-9fdf-cfc8025f3841","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":224,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"6d562b85-330f-42b0-9dd3-dfa81602d3f1","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":224,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"14b0971b-df5d-4561-9709-b73cc9a0f5fe","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":224,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"81e603ae-5893-40a6-94c4-4a50143de852","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":224,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"8f507e2f-42ce-4fc8-b45e-2691b536d490","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":224,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"c01d1f78-b26b-422e-a721-9f5d5db3160a","block_type":"box","text":"18","page_number":224,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"7b30e8a5-d9dc-4719-bef5-4ef72c33921b","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":224,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"0fa74a7a-ce34-4061-894f-a27fcd257404","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":224,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"17db8e45-b228-47e5-8bc2-0224c8f2969b","block_type":"box","text":"including the decision to lend securities.","page_number":224,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"316fc5fb-2078-4789-9568-f35ad8cde9e6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"23033604-5bba-4827-96c5-a97f4362a652","block_type":"box","text":"Global Principles | 13","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"46f9f21f-0e71-4c10-a66d-cd8059e36077","block_type":"box","text":"NM1026U-5982643-224/241","page_number":224,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"66c4f3e4-b6ec-4ae1-bacf-5f125e71ce2d","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":225,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"29559bd4-5110-49e8-872b-6d5d225f955c","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":225,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"53004396-4c4a-476e-8bb7-fb822a2ba939","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":225,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"21c3dfc1-b7ae-4ec9-9a01-67a7f2e1d50a","block_type":"box","text":"19","page_number":225,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"9ad8a309-ccea-4065-92ff-40424be8e0c3","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":225,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"dedf2e9e-fd90-44c5-bbe2-afedf4b8d842","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":225,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"229a3816-fed1-463e-8c32-9367871ef748","block_type":"box","text":"20","page_number":225,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"007d3bd8-b913-489b-81e6-fd8016c520e1","block_type":"box","text":"As a result, the shares attributed to BlackRock por tfolios in company share registers may be voted differently","page_number":225,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"b4c9d295-3b03-4a88-b369-ca18901160df","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":225,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"d656f319-7661-4d20-b713-225b77618490","block_type":"box","text":"accordance with a third-par ty policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":225,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"693c5861-61cc-444f-873d-cf3d4396c1c5","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":225,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"2cb4d21b-79ce-40c5-8b54-d9edf3194b76","block_type":"box","text":"21","page_number":225,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"9d158a31-59bb-437d-9428-006e1b448722","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":225,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"da4ff907-a312-4f21-bc9d-aab53f395b8c","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":225,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"ec4347a6-a7e0-43dd-8dbd-9fa9a0867d86","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":225,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"de9e8041-8c2d-4a75-9869-91c6d5206e0b","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":225,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"7080a42b-337b-477b-8c40-6ff999369294","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":225,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"d2e4f8eb-5dbb-4bc3-b80e-d70ed354219c","block_type":"box","text":"priorities, as well as quar terly repor ts detailing our proxy voting and engagement activities.","page_number":225,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"a91ced30-5732-477e-8ba4-4f130d72ac00","block_type":"box","text":"19","page_number":225,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"202a9c27-ebda-4d8e-b002-690b176314e0","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":225,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"d97de453-3d3e-4a77-a5cb-9b9bdc7eab8d","block_type":"box","text":"preferences from a set of voting policies from third-par ty proxy advisers. BlackRock can then use its proxy voting","page_number":225,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"048de550-e0aa-4336-a8ca-e26027694371","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":225,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"1e914997-06c6-4ab0-97c6-38621fc3dd43","block_type":"box","text":"20","page_number":225,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"9c92dc2d-da24-48a2-93fb-f86e5fca0b42","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":225,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"59a089c8-0f01-4b94-992b-b31d17ec0061","block_type":"box","text":"21","page_number":225,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"889b185d-148b-415e-997e-e60a2317f48c","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":225,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"edc8df17-1ecb-4baa-bc56-8b22b518d0d7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f62733e6-b662-48fb-abc9-564f8b41b5f3","block_type":"box","text":"Global Principles | 14","page_number":225,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"bba5827d-81e6-4494-8c8b-a193294bad21","block_type":"box","text":"NM1026U-5982643-225/241","page_number":225,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"92bf6bdc-e4d5-40e9-b761-34f9024fbd5b","block_type":"box","text":"Want to know more?","page_number":226,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"292f7049-35dc-4a86-97b5-2e04fbc2787b","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":226,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"405bbed3-5d0e-4c1a-bc69-d53aa602f2cd","block_type":"box","text":"This document is provided for information and educational purposes only. Investing involves risk, including the loss of","page_number":226,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"942b2d35-7343-467d-9b14-a9a26532d0d5","block_type":"box","text":"principal.","page_number":226,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"7ffda210-0b23-45a0-9807-5afb6896c572","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":226,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"c9f991fe-dfca-437a-b599-57040fa17cd1","block_type":"box","text":"©2025 BlackRock, Inc. All rights reserved.","page_number":226,"box":{"x":69,"y":883,"width":303,"height":11}},{"id":"e00d62f3-49bc-4d5f-8151-4cbe73a05302","block_type":"box","text":"BLACKROCK","page_number":226,"box":{"x":379,"y":883,"width":92,"height":8}},{"id":"73007a15-d193-4faf-ae13-3411d494d0d7","block_type":"box","text":"is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":226,"box":{"x":478,"y":882,"width":417,"height":11}},{"id":"b56fc5a3-5ae0-4bff-aaff-de2a2d84c874","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":226,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"96cb4e59-cf52-4663-b80b-2ab894c02056","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b494a1a7-3371-414a-9d31-f1bfe2c80afc","block_type":"box","text":"Global Principles | 15","page_number":226,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"520c8b93-cb83-49e3-b52a-514a1c4ba53d","block_type":"box","text":"NM1026U-5982643-226/241","page_number":226,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"6a6e943f-46f3-403d-8a00-595fd5640b49","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"882fbc3c-5d22-4e7e-a451-403693da7b1b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":227,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"9868c3f9-2c1f-4f14-b218-0567d4b2c4e5","block_type":"box","text":"Effective as of January 2026","page_number":227,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"5af8c50d-9ef2-4a8e-831c-40db9d47bea0","block_type":"box","text":"NM1026U-5982643-227/241","page_number":227,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"ee02a45e-3613-4cfb-9b08-d2b699276afa","block_type":"box","text":"Contents","page_number":228,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"9ea0c9b8-28d3-4ca8-bcb1-e31cb8a0c5e9","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":228,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"88f4608b-ad8e-41ce-aec8-94163c66bfaf","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":228,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"1c54197c-4535-4f63-8473-aaba023d7bc6","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":228,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"fffb17c1-7da2-45f2-a806-59c3f0be9da5","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":228,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"ade028ba-89fb-446c-8e1c-5035d36b775f","block_type":"box","text":"The Guidelines’ design principles","page_number":228,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"963d45d4-371e-4edf-90c5-93929e795c71","block_type":"box","text":"4","page_number":228,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"7ec475a0-9b8e-45ad-8239-9fe90e51b478","block_type":"box","text":"Voting approach under the Guidelines","page_number":228,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"e20446bf-b3e1-416f-a0f8-7fd341e92848","block_type":"box","text":"5","page_number":228,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"6f4983b5-da4b-41cc-bb3d-bc483e36f8ce","block_type":"box","text":"Related matters","page_number":228,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"81682f5a-8be7-4202-b8ba-84b36f7a04fa","block_type":"box","text":"8","page_number":228,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"a7a726b8-8ca0-43c1-bb6f-863134300d69","block_type":"box","text":"Appendix 1","page_number":228,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"4bf4e6cd-7f79-45c7-a9cb-d777295becc3","block_type":"box","text":"10","page_number":228,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"c957d9ad-2040-4a3e-b48d-aaef3f67c253","block_type":"box","text":"Appendix 2","page_number":228,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"1d6cfd54-57f7-40f9-bbc8-982786697223","block_type":"box","text":"11","page_number":228,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"5debb110-d3cb-40d0-8080-71414b4c26aa","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"3e51c4b5-234a-4298-9771-cfc17b5c29b2","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"39dc9558-7288-4d5e-a6e5-7e85d19be7d9","block_type":"box","text":"NM1026U-5982643-228/241","page_number":228,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"1279b7ce-9eec-4c6c-8f32-183869a89b97","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":229,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"4ade44a3-087a-4770-8a43-4ee97a57ffc4","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":229,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"d9a875d1-daf6-48ef-84fe-c8b6ca433436","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. BlackRock offers a","page_number":229,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"7fcd8cf6-9a4a-466e-b3b2-9c82fd05e7f1","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":229,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"3ea92488-1215-4f12-b25e-13cc7b5d3c83","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":229,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"f70d96f7-fc7b-457e-9156-bdbc7e3ad051","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship effor ts, reflecting the","page_number":229,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"b9bba7a5-7959-4b97-9a30-d0d40948854d","block_type":"box","text":"investment horizons of the majority of our clients. BIS does this through:","page_number":229,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"c53c3e76-abe4-4e8e-878f-e614d38b2d5d","block_type":"box","text":"1.","page_number":229,"box":{"x":70,"y":171,"width":11,"height":9}},{"id":"8354fd6c-db6b-4648-8dd1-964b875ee9ed","block_type":"box","text":"Engaging with the boards and management of companies","page_number":229,"box":{"x":102,"y":171,"width":418,"height":11}},{"id":"ae9007a5-3b63-46d5-a29a-30efa45dc34b","block_type":"box","text":"in which clients are invested to deepen our","page_number":229,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"6805c0d4-6a47-4e78-9816-1c4d4cbb03e5","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":229,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"4b7aeaa3-c594-400b-9348-e2a4a8ffc783","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients.","page_number":229,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"dc1613a8-ee2d-41e2-989b-a12233882750","block_type":"box","text":"1","page_number":229,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"78e61552-bdff-43b5-b1b1-3924587fcb08","block_type":"box","text":"2.","page_number":229,"box":{"x":69,"y":221,"width":12,"height":9}},{"id":"26dd3f2c-581d-4154-a1cd-bc061a5ebe62","block_type":"box","text":"Voting at shareholder meetings","page_number":229,"box":{"x":101,"y":221,"width":228,"height":11}},{"id":"af908023-daf1-4301-bae6-753dfc111689","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":229,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"f2ab04fc-9c21-4894-9819-91992c968f90","block_type":"box","text":"to vote on their behalf.","page_number":229,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"ce5e7e03-6955-4e36-a791-bfc8bddca40f","block_type":"box","text":"3.","page_number":229,"box":{"x":69,"y":256,"width":12,"height":9}},{"id":"bbd2f84e-84d1-4e9d-aead-bc05435434de","block_type":"box","text":"Contributing to industry dialogue on stewardship","page_number":229,"box":{"x":101,"y":256,"width":356,"height":11}},{"id":"be124ffb-745b-4e3e-a432-4f37d81413ab","block_type":"box","text":"to share our perspectives on matters that may impact our","page_number":229,"box":{"x":462,"y":257,"width":412,"height":10}},{"id":"3f28c4a6-6d86-4dd4-b38b-cfa1ded297f3","block_type":"box","text":"clients’ investments.","page_number":229,"box":{"x":101,"y":272,"width":147,"height":8}},{"id":"baf0fd95-e901-42d4-a4b0-d88075b8fe4e","block_type":"box","text":"4.","page_number":229,"box":{"x":69,"y":292,"width":12,"height":8}},{"id":"82a1e3e3-ba4f-42af-9a92-1359bc608c1b","block_type":"box","text":"Reporting on our activities","page_number":229,"box":{"x":102,"y":292,"width":193,"height":11}},{"id":"64ee13cb-7541-41fd-a3ad-df2461fff01c","block_type":"box","text":"to inform clients about our stewardship effor ts on their behalf through a range of","page_number":229,"box":{"x":301,"y":292,"width":579,"height":11}},{"id":"8b41994b-50ca-4943-9c4e-0cd81f557cbc","block_type":"box","text":"publications on our website and direct client communications.","page_number":229,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"a488ff97-c041-42d3-aa21-7fab629ae59e","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition","page_number":229,"box":{"x":68,"y":337,"width":635,"height":11}},{"id":"3c812f96-66c7-4450-aea7-a6cf6d2b8e91","block_type":"box","text":"2, 3","page_number":229,"box":{"x":704,"y":337,"width":17,"height":6}},{"id":"3b9ecbbf-6061-41a8-861e-c0591a945e99","block_type":"box","text":"Some of our clients are pursuing decarbonization as an investment objective, including many of our largest","page_number":229,"box":{"x":102,"y":360,"width":761,"height":11}},{"id":"f3af34e6-d597-46ab-82d4-ade2f2dbc0b3","block_type":"box","text":"European clients, who have made net zero commitments.","page_number":229,"box":{"x":70,"y":375,"width":407,"height":11}},{"id":"7b961222-6c98-48ea-9662-96e839da77b9","block_type":"box","text":"4","page_number":229,"box":{"x":479,"y":375,"width":4,"height":4}},{"id":"4cf366a5-582d-4673-b476-08ead851ddff","block_type":"box","text":"To suppor t our clients’ unique and varied investment","page_number":229,"box":{"x":488,"y":375,"width":376,"height":11}},{"id":"486c864b-437f-4674-a6a3-b2a815e8f2fe","block_type":"box","text":"objectives, in July 2024, BlackRock launched the Climate and Decarbonization Stewardship program.","page_number":229,"box":{"x":69,"y":390,"width":718,"height":11}},{"id":"59c84054-bbe3-4444-9ef3-4ab3769f6cbd","block_type":"box","text":"The Climate and Decarbonization Stewardship team (the dedicated team) applies these proxy voting guidelines","page_number":229,"box":{"x":101,"y":413,"width":789,"height":11}},{"id":"18881d10-54d4-43dc-8cbd-a88c8466dc5b","block_type":"box","text":"(the Guidelines) to those funds that BlackRock offers to clients that have climate and decarbonization objectives and","page_number":229,"box":{"x":69,"y":428,"width":833,"height":11}},{"id":"559be97d-dd62-4d8f-a40b-5e9d407b3e50","block_type":"box","text":"where the funds’ respective governing body has explicitly approved the application of the Guidelines (referred to in","page_number":229,"box":{"x":68,"y":443,"width":814,"height":11}},{"id":"66eac186-da57-4393-94fe-27373d6bdf82","block_type":"box","text":"this document as “in-scope funds”).","page_number":229,"box":{"x":68,"y":458,"width":256,"height":11}},{"id":"ab4bc93e-b90a-493f-96c1-0b6005ca4cec","block_type":"box","text":"5","page_number":229,"box":{"x":326,"y":458,"width":4,"height":5}},{"id":"4156c6fe-28d5-49c9-90df-cba2ebd5aa4d","block_type":"box","text":"Separately managed account (SMA) clients have a range of options, including","page_number":229,"box":{"x":336,"y":458,"width":551,"height":11}},{"id":"b5dff6e9-e9fe-46d2-bd0a-e1b4abaaf083","block_type":"box","text":"instructing BlackRock to apply these Guidelines to their SMA holdings.","page_number":229,"box":{"x":70,"y":473,"width":499,"height":11}},{"id":"7adb744d-64d7-47f9-b647-22a96dc0245e","block_type":"box","text":"THE CLIMATE AND DECARBONIZATION STEWARDSHIP GUIDELINES","page_number":229,"box":{"x":242,"y":503,"width":493,"height":9}},{"id":"ca3ef601-cc00-497c-abd0-e67989488ef6","block_type":"box","text":"These Guidelines set out the dedicated team’s approach to engaging and voting on matters related to climate","page_number":229,"box":{"x":101,"y":526,"width":784,"height":11}},{"id":"130d1c99-1baf-437b-a018-c06202ea9170","block_type":"box","text":"risks and the transition to a low-carbon economy at companies that are held by in-scope funds and accounts that","page_number":229,"box":{"x":69,"y":541,"width":806,"height":11}},{"id":"8b220046-4a39-46a7-b8e5-9ab5476ca067","block_type":"box","text":"apply these Guidelines.","page_number":229,"box":{"x":69,"y":556,"width":165,"height":11}},{"id":"5654f26f-e5ff-45e7-b490-502b8b156036","block_type":"box","text":"The Guidelines differ from the Benchmark Policies in that they consider, in addition to financial objectives,","page_number":229,"box":{"x":101,"y":579,"width":755,"height":11}},{"id":"a450cd23-63b9-4ace-8045-e29699e1cafe","block_type":"box","text":"companies’ strategies to align with the transition to a low-carbon economy. They also incorporate the more ambitious","page_number":229,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"4cc9d68e-9e7e-4f91-a06b-53967c7e499e","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":229,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"4e9bdda2-983e-4e82-bd39-4b6194f5998f","block_type":"box","text":"6","page_number":229,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"7f04be99-9c68-400d-8b97-4d11caccaf5c","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an impor tant role in the transition to a low","page_number":229,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"2d0a3613-b184-4c9d-b35b-2b1959bd1c03","block_type":"box","text":"carbon economy. This includes companies which produce goods and services that contribute to real world","page_number":229,"box":{"x":69,"y":647,"width":753,"height":11}},{"id":"21f5df71-fe0e-4cbe-af90-ec724599488a","block_type":"box","text":"decarbonization or have a carbon intensive business model and face outsized impacts from the low-carbon transition,","page_number":229,"box":{"x":69,"y":662,"width":836,"height":11}},{"id":"565eef8a-3c3f-44f0-8156-db359c42b246","block_type":"box","text":"1","page_number":229,"box":{"x":69,"y":692,"width":4,"height":4}},{"id":"80bada58-e6c6-4103-9ee4-d2c31d5ac2b1","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":229,"box":{"x":79,"y":691,"width":790,"height":11}},{"id":"c5933605-6e7f-4f14-bd64-679739e4182b","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":229,"box":{"x":69,"y":706,"width":836,"height":12}},{"id":"2e5e2949-866e-4a8b-84fa-d329d4494f83","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":229,"box":{"x":68,"y":721,"width":805,"height":12}},{"id":"f89a5b19-17b2-4b85-a353-c51047f8d213","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":229,"box":{"x":69,"y":737,"width":405,"height":11}},{"id":"4bdf173f-d15b-4a4b-a21b-4cfeac8ee0c8","block_type":"box","text":"2","page_number":229,"box":{"x":69,"y":755,"width":4,"height":4}},{"id":"ff0d9c9f-8dec-4d05-b364-7d5459098540","block_type":"box","text":"BlackRock has heard from a growing number of clients globally that they have made, or are planning to make,","page_number":229,"box":{"x":79,"y":754,"width":780,"height":11}},{"id":"80de5dd4-a675-4ed2-845d-356eac60bdae","block_type":"box","text":"commitments to align their investment strategies with the transition to a low-carbon economy. This stewardship","page_number":229,"box":{"x":69,"y":770,"width":793,"height":11}},{"id":"6c8d9578-945d-411f-9758-c604d9cba0b5","block_type":"box","text":"option helps those clients meet their climate and decarbonization investment objectives and is par t of BlackRock’s","page_number":229,"box":{"x":69,"y":784,"width":820,"height":12}},{"id":"f8b3fa75-8c5d-4eab-8fac-84bd3bd1b4bd","block_type":"box","text":"commitment to offer clients choice.","page_number":229,"box":{"x":69,"y":799,"width":252,"height":10}},{"id":"412ebd44-88ef-4829-951a-c1f2bcca0a7b","block_type":"box","text":"3","page_number":229,"box":{"x":69,"y":818,"width":4,"height":4}},{"id":"c4ddf02c-d912-4047-af74-2222f8ac22bf","block_type":"box","text":"Key climate, decarbonization and low-carbon transition related terms used in these Guidelines are explained in","page_number":229,"box":{"x":79,"y":817,"width":788,"height":11}},{"id":"47eee801-cb8d-42ec-8d99-1d5fd9b466c1","block_type":"box","text":"appendix 1.","page_number":229,"box":{"x":69,"y":833,"width":81,"height":10}},{"id":"ae2291ed-4f6d-4449-a25a-cd6e24cb8a31","block_type":"box","text":"4","page_number":229,"box":{"x":69,"y":850,"width":4,"height":5}},{"id":"c268edfe-6b22-4963-8329-4941310f7b7f","block_type":"box","text":"Includes a select group of our largest client relationships. Net zero commitments are sourced from respective","page_number":229,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"8be12aa3-5ec9-4194-91d6-d11ca8f79c1a","block_type":"box","text":"company websites, as of January 2025.","page_number":229,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"9899930b-0b15-48c1-90a8-89139f2785e9","block_type":"box","text":"5","page_number":229,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"40b59f6f-e0e6-488f-be28-05a57188aa86","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":229,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"e7c18ef5-4961-4f1c-91c5-4295a4dc47de","block_type":"box","text":"6","page_number":229,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"b356ba87-be23-496d-ac4c-b1c8b9ca4689","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":229,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"5df4256b-ec49-412c-a5d6-5f7f673bd8bc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1738f973-feb6-4744-bdc7-1c5e7f250d55","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"bd6cbc70-f3be-48e4-b402-fe19e626bccb","block_type":"box","text":"NM1026U-5982643-229/241","page_number":229,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"cb5a8b6c-990d-47eb-9940-b0f648540eb4","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":230,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"9aef5ea5-0d03-44a5-b83f-bbf0ab4b2e45","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":230,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"31a57ee5-75cb-458e-8144-d6102ab13bcf","block_type":"box","text":"7","page_number":230,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"4cdafda7-e6e2-4d31-98e0-7f10e05aab79","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":230,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"ec2d35fb-9078-4d8f-8c3a-ab2506a08c85","block_type":"box","text":"Benchmark Policies.","page_number":230,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"fa111448-9ab9-4aec-b153-e7ad1bdabf9d","block_type":"box","text":"8","page_number":230,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"fc62261a-5b30-4a1a-8951-26715540a6ac","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":230,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"8c6498d8-2070-4003-9cb9-c1454e1aaedf","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":230,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"227a563c-f597-4e86-8b5c-eafdef1d0898","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. This includes","page_number":230,"box":{"x":70,"y":128,"width":775,"height":11}},{"id":"280cf439-0365-4b84-bd6b-2677fdd8e7cc","block_type":"box","text":"consideration of climate-related risks and oppor tunities in a company’s business model, where material to the","page_number":230,"box":{"x":69,"y":143,"width":787,"height":11}},{"id":"fbce29d6-d8b9-4c60-b32e-559223ee86be","block_type":"box","text":"company’s ability to deliver long-term financial returns.","page_number":230,"box":{"x":69,"y":158,"width":388,"height":11}},{"id":"d0ff052e-4d20-441f-955d-c5be7b1f1dfd","block_type":"box","text":"Please see Appendix 2, which sets out the key differences between the BIS Benchmark Policies and these","page_number":230,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"6b36fb55-2ae0-478b-b240-9a905a865fce","block_type":"box","text":"Guidelines on items related to climate risk and the transition to a low-carbon economy.","page_number":230,"box":{"x":69,"y":196,"width":617,"height":11}},{"id":"a3adb853-fbdf-4eb8-af98-4a30c08f5faf","block_type":"box","text":"UNDERSTANDING THE INVESTMENT IMPLICATIONS OF THE TRANSITION TO A LOW-CARBON ECONOMY","page_number":230,"box":{"x":111,"y":226,"width":757,"height":9}},{"id":"d3041198-6c6f-40ec-9972-f60ca1ee4344","block_type":"box","text":"Research from the BlackRock Investment Institute (BII) highlights that changing government policy, technology,","page_number":230,"box":{"x":102,"y":249,"width":785,"height":11}},{"id":"be8fba26-b66e-4692-aeb7-01637ff7bd00","block_type":"box","text":"and consumer and investor preferences are driving the transition to a low-carbon economy, but sectors and markets","page_number":230,"box":{"x":69,"y":264,"width":825,"height":11}},{"id":"32b86f87-c3fb-43f0-9997-97f15dadf7f1","block_type":"box","text":"can decarbonize at varying speeds given the dynamic and uncer tain nature of technological feasibility, consumer","page_number":230,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"7c565300-6e7d-425a-95d3-3e19d306c30a","block_type":"box","text":"demand, and government policies, among other factors.","page_number":230,"box":{"x":69,"y":294,"width":395,"height":11}},{"id":"f1b5a2b1-277c-454d-9d2d-095fcb5ab492","block_type":"box","text":"9, 10","page_number":230,"box":{"x":466,"y":294,"width":21,"height":6}},{"id":"05c77fe0-6d54-44b8-98c3-87274a4020e1","block_type":"box","text":"To better understand the shape and speed of a transition to a low-carbon economy, BlackRock has developed the","page_number":230,"box":{"x":101,"y":317,"width":808,"height":11}},{"id":"91f4fb86-a6b8-490d-866c-8a29732c0c1a","block_type":"box","text":"BlackRock Investment Institute Transition Scenario (BIITS), powered by Aladdin","page_number":230,"box":{"x":70,"y":332,"width":559,"height":11}},{"id":"9e52c62d-c904-4c26-a8ba-6e96841e955e","block_type":"box","text":"®","page_number":230,"box":{"x":630,"y":332,"width":6,"height":5}},{"id":"78a15677-4a2e-4d13-93b6-e6cfb07502c4","block_type":"box","text":"technology. BIITS is a research","page_number":230,"box":{"x":641,"y":332,"width":223,"height":11}},{"id":"48bf6240-2fcf-4859-b5d8-9698e555c9ce","block_type":"box","text":"based, analytical forecast of how the low-carbon transition is most likely to play out based on what we know and","page_number":230,"box":{"x":69,"y":347,"width":799,"height":11}},{"id":"1490f904-e219-4961-90e7-21e0be126a49","block_type":"box","text":"expect today. It can help inform a top-down assessment of a company’s business risk arising from the transition. BII","page_number":230,"box":{"x":69,"y":362,"width":828,"height":11}},{"id":"31e1235a-aba7-47a0-8d74-9c8901795f37","block_type":"box","text":"based its key assumptions on rigorous research, and the input of BlackRock’s por tfolio managers and other exper ts.","page_number":230,"box":{"x":69,"y":377,"width":834,"height":12}},{"id":"c334e08e-6114-4ac7-9dc3-245c6442ea74","block_type":"box","text":"These Guidelines draw from the proprietary insights generated by BIITS and Aladdin Climate","page_number":230,"box":{"x":101,"y":400,"width":655,"height":11}},{"id":"b1ffd68d-863d-47fb-a925-33b5b2fa1025","block_type":"box","text":"®","page_number":230,"box":{"x":756,"y":400,"width":6,"height":5}},{"id":"d4240370-e777-4c07-bd87-9886fd04461e","block_type":"box","text":", BlackRock’s Risk","page_number":230,"box":{"x":764,"y":400,"width":131,"height":10}},{"id":"aed07383-1ea7-4d95-85c3-b05fc4d82e0c","block_type":"box","text":"and Quantitative Analysis Group, and the broader BIS team to help inform and guide engagement and voting activities","page_number":230,"box":{"x":69,"y":415,"width":838,"height":11}},{"id":"2e28a563-981d-4fa7-8fe8-88e352d9bd33","block_type":"box","text":"on behalf of clients invested in in-scope funds and SMAs.","page_number":230,"box":{"x":69,"y":430,"width":408,"height":11}},{"id":"d855287e-f382-498c-9a41-f1f1628547fe","block_type":"box","text":"11","page_number":230,"box":{"x":479,"y":431,"width":9,"height":4}},{"id":"ea46067e-4d08-4b66-b9f8-a8d1c8cd5f90","block_type":"box","text":"In doing so, the dedicated team takes into consideration","page_number":230,"box":{"x":495,"y":430,"width":401,"height":11}},{"id":"d36f5236-7f66-45b1-b0af-fa4c4cb2e13b","block_type":"box","text":"the fact that the necessary data to assess individual companies currently has limitations, but is improving.","page_number":230,"box":{"x":68,"y":445,"width":763,"height":12}},{"id":"fd3cdfa7-7e56-42b3-84be-0d8de224c21d","block_type":"box","text":"THE GUIDELINES’ DESIGN PRINCIPLES","page_number":230,"box":{"x":347,"y":476,"width":284,"height":8}},{"id":"8dbb2098-cfcd-4a67-b396-fec60943d2ae","block_type":"box","text":"The framework of these Guidelines is designed to:","page_number":230,"box":{"x":101,"y":498,"width":357,"height":11}},{"id":"e8a29a2c-e744-4ac2-8f37-fb1bd656a12c","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":521,"width":6,"height":5}},{"id":"4578a3f0-8786-49e0-bfd1-a9c91f8cab3a","block_type":"box","text":"Prioritize sectors and companies that play an important role in the transition to a low-carbon economy:","page_number":230,"box":{"x":102,"y":518,"width":751,"height":11}},{"id":"65b78df1-7929-49d5-bb63-3b3d036f4250","block_type":"box","text":"This","page_number":230,"box":{"x":859,"y":519,"width":28,"height":8}},{"id":"16d77886-e6a9-44e3-8a61-5c6bd1e9886e","block_type":"box","text":"includes companies which produce goods and services that contribute to real world decarbonization or have a","page_number":230,"box":{"x":102,"y":534,"width":782,"height":11}},{"id":"f7a110c4-2515-402a-b7a4-5599ca2a8862","block_type":"box","text":"carbon intensive business model and face outsized impacts from the low-carbon transition.","page_number":230,"box":{"x":101,"y":549,"width":648,"height":11}},{"id":"bbca7ebf-e595-4b0a-9bb0-c8328814929e","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":572,"width":6,"height":4}},{"id":"08be36d9-72ec-40b8-a89c-98020e885ba4","block_type":"box","text":"Apply a nuanced approach to our analysis that acknowledges the unevenness of the low-carbon transition","page_number":230,"box":{"x":101,"y":569,"width":772,"height":11}},{"id":"ef1b954b-1501-47f1-bd08-d38ce14354fc","block_type":"box","text":"across sectors and markets:","page_number":230,"box":{"x":101,"y":584,"width":208,"height":9}},{"id":"ffbfe188-db75-40b9-a776-c79ec73bfe77","block_type":"box","text":"The Guidelines take into consideration the varying speeds at which sectors and","page_number":230,"box":{"x":315,"y":584,"width":566,"height":11}},{"id":"b66856e9-efa1-475d-a5fa-c2148df46a94","block_type":"box","text":"markets are decarbonizing based on technological feasibility, consumer demand, government policy, regulatory","page_number":230,"box":{"x":102,"y":599,"width":789,"height":11}},{"id":"01480ffe-83b7-407b-a70b-dd4b1dfe39aa","block_type":"box","text":"frameworks and other factors. Fur ther, the Guidelines recognize that these factors are uncer tain and dynamic.","page_number":230,"box":{"x":101,"y":614,"width":785,"height":11}},{"id":"de6d6fd5-016f-4646-8b96-afeea0994f4c","block_type":"box","text":"•","page_number":230,"box":{"x":69,"y":637,"width":6,"height":5}},{"id":"de5a5474-c16f-4729-9623-670e7e42b949","block_type":"box","text":"Take a long-term, pragmatic approach to the low-carbon transition that minimizes disruption to portfolio","page_number":230,"box":{"x":101,"y":634,"width":759,"height":11}},{"id":"30026c67-c980-4697-b186-2eea86d85b51","block_type":"box","text":"companies and their key stakeholders:","page_number":230,"box":{"x":101,"y":649,"width":282,"height":11}},{"id":"5b31728f-5d47-463f-ba8a-30fc511db9d6","block_type":"box","text":"The Guidelines recognize the challenges that many companies face in","page_number":230,"box":{"x":389,"y":649,"width":496,"height":12}},{"id":"73bc4004-3782-4080-8c2e-6863a4ad76b3","block_type":"box","text":"adapting their business models to the low-carbon transition. It reflects a view that a smooth transition — where","page_number":230,"box":{"x":102,"y":664,"width":794,"height":12}},{"id":"840a21e0-6936-4891-ab68-4a8610042e5e","block_type":"box","text":"companies adapt while continuing to deliver financial returns — is a better long-term investment outcome and","page_number":230,"box":{"x":101,"y":680,"width":783,"height":11}},{"id":"9dfbf7f9-deea-4cd1-b050-836d3ba16252","block_type":"box","text":"7","page_number":230,"box":{"x":69,"y":709,"width":4,"height":5}},{"id":"a4eabd7c-a553-47c4-aedb-a6c38b2815c8","block_type":"box","text":"These companies may already be low-carbon operators or be demonstrating momentum in reducing emissions in","page_number":230,"box":{"x":78,"y":709,"width":803,"height":11}},{"id":"c7425000-f964-4256-a3ec-4e93c0bf492b","block_type":"box","text":"their operations, providing key inputs or goods and services that suppor t real world decarbonization, or pivoting their","page_number":230,"box":{"x":68,"y":724,"width":832,"height":11}},{"id":"641dcef1-247f-4a88-a423-d6da1ac90e8a","block_type":"box","text":"current business model to contribute to the transition to a low-carbon economy.","page_number":230,"box":{"x":69,"y":739,"width":565,"height":11}},{"id":"fb4fab2d-3eef-4bf2-9ac3-388fd875ca43","block_type":"box","text":"8","page_number":230,"box":{"x":69,"y":757,"width":4,"height":5}},{"id":"c36f0b12-7cda-46f7-b871-ec7efaffb962","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":230,"box":{"x":78,"y":757,"width":789,"height":11}},{"id":"c5111906-b7ba-412c-a2eb-aa5b37c4c4bf","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":230,"box":{"x":70,"y":772,"width":829,"height":11}},{"id":"825d7eaa-d2a6-4a76-b9a4-58982f28a34d","block_type":"box","text":"based approach, and are focused solely on advancing clients’ financial interests.","page_number":230,"box":{"x":69,"y":787,"width":576,"height":11}},{"id":"869d375d-e44b-4748-8a42-da9a0a89a892","block_type":"box","text":"9","page_number":230,"box":{"x":69,"y":805,"width":4,"height":4}},{"id":"d4e08dcc-7633-4973-941f-c15538dbac1b","block_type":"box","text":"BII’s latest research shows that while decarbonization continues, its pace is increasingly uneven across sectors and","page_number":230,"box":{"x":79,"y":805,"width":828,"height":11}},{"id":"1c287c8b-42a4-4725-9cb0-7fc856622c49","block_type":"box","text":"regions, and overall slower than previously expected.","page_number":230,"box":{"x":69,"y":820,"width":375,"height":11}},{"id":"453785bb-4a38-415a-b38a-4d40fa31c82e","block_type":"box","text":"10","page_number":230,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"c6ffe442-9d7e-4b1f-b2e0-aa0e635d7b4b","block_type":"box","text":"BlackRock, “Evolving energy transition, evolving oppor tunities,” February 2025.","page_number":230,"box":{"x":84,"y":837,"width":565,"height":12}},{"id":"ec5d0bfa-eb33-4b58-b152-7c434806cda2","block_type":"box","text":"11","page_number":230,"box":{"x":69,"y":855,"width":9,"height":5}},{"id":"c3cf7d44-352b-470b-a716-7658d810cafc","block_type":"box","text":"Aladdin","page_number":230,"box":{"x":83,"y":855,"width":51,"height":9}},{"id":"bf898978-3f04-46f9-87ce-b582c98e1eb4","block_type":"box","text":"®","page_number":230,"box":{"x":135,"y":855,"width":6,"height":5}},{"id":"c7aa85e8-e7f7-4563-8c04-3f5bc42a1b77","block_type":"box","text":"Climate is a suite of climate analytics including forward-looking scenario analysis and net zero alignment","page_number":230,"box":{"x":147,"y":855,"width":745,"height":11}},{"id":"1901b339-ad71-43da-afa1-8ee8d1bb169b","block_type":"box","text":"analytics. Aladdin","page_number":230,"box":{"x":69,"y":870,"width":123,"height":11}},{"id":"3895281b-213c-4dea-882e-7a9f4c2603c3","block_type":"box","text":"®","page_number":230,"box":{"x":193,"y":870,"width":6,"height":5}},{"id":"3ff2e623-e24a-4f4d-8605-aab017b43f7e","block_type":"box","text":"is a proprietary investment and risk management platform.","page_number":230,"box":{"x":205,"y":870,"width":418,"height":11}},{"id":"65e24038-97ad-4b82-b610-15f872186b4f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1170de7b-ce45-4b8b-987a-3a185384b7a5","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 4","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"cc871923-1c38-40b3-9e96-8f1c5f922bb3","block_type":"box","text":"NM1026U-5982643-230/241","page_number":230,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"962e9043-bc1c-4f35-a4d0-8ea4c506348b","block_type":"box","text":"less disruptive to other key stakeholders than a disorderly transition. Fur ther, the Guidelines consider the","page_number":231,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"3344cc91-4e51-4485-998b-7421fab52017","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":231,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"1ea7c49a-49b9-494c-b672-036ac6dd891f","block_type":"box","text":"does not.","page_number":231,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"11d529aa-ca86-4022-8e36-6ca8dcb78267","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"8a7f21c3-a1d6-4c05-861a-efb4c4c5da79","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":231,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"fdf5dc74-13c9-4d8a-8726-d2ced7753617","block_type":"box","text":"limitations:","page_number":231,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"731e92b2-9a62-49c7-b82a-2bb0823e6878","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":231,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"b632a3f6-0fed-4df6-8f12-db42a625887b","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":231,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"d7c41bba-301e-4685-b0cb-06d0cb64bc32","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":231,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"9f80c977-b04d-4b17-a4f6-c4e1ce69905d","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"3655e943-48b5-46d0-bf2c-c947d563a080","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":231,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"fa4690c1-7fe1-42a9-9861-7b07c909fb32","block_type":"box","text":"The boards and executive leadership","page_number":231,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"9dd0c98b-a719-4d04-b18e-4a58a290a2ef","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":231,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"a454bc31-e3c1-4ad3-af2d-cd17f01347ef","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":231,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"8f3535c6-b963-454c-b25f-2d9a33f837d6","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":231,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"432cd2b4-472e-4ab8-a2aa-72a96e42c9bd","block_type":"box","text":"Voting approach under the Guidelines","page_number":231,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"f16115fe-e1d8-473a-8148-156797fe0dfa","block_type":"box","text":"12","page_number":231,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"c61fb3ef-0ee4-4a34-bf80-ab280fbc7776","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":231,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"69d0aad5-2777-4bc8-8eb5-e50e7c83af89","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":231,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"c66e9ecc-a3ac-4063-bb4b-6e7f508d22a3","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":231,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"694af516-e134-431d-a784-7ffc78c7b9c2","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":231,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"e151e245-25bb-4aba-a1b7-1fab6fd62d55","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":231,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"3b7ccea7-9bc2-4306-a6be-ef591c87e184","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":231,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"20c1fdd6-3904-4264-aea3-74d14ee06cfb","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":231,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"166b1edb-ab5b-4307-b41f-fad074460c68","block_type":"box","text":"Corporate Disclosures","page_number":231,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"196ffdbc-b2ac-4584-876b-88ab256c68c2","block_type":"box","text":"13","page_number":231,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"455a4166-0421-46ad-82d4-cf76528816b5","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":231,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"eae68852-bdab-4ac4-b383-815ccf9e724c","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":231,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"9ca243da-fe42-4040-8812-5107f425e4ae","block_type":"box","text":"to companies that are impor tant to the transition to a low-carbon economy to explain the strategy and governance","page_number":231,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"335b1d06-7d3b-441c-8732-e52f1569e768","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":231,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"d2d068b5-b9a4-446e-bae0-3f4a31dc6a73","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":231,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"2667acbe-87e0-4da9-bf6f-467c60cf3743","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":231,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"d3016094-0638-44e4-b2c5-8c96c5d9d996","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":231,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"bafd05ad-47fd-480d-aa73-3900f37753ee","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":231,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"e5bd5ac4-5b52-4b8a-acb7-1cd9f7f5504b","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":231,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"59686f04-74d9-4549-ae46-c61a7da9e83b","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":231,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"b3857fa8-4e9a-4037-a723-d1e75bee689f","block_type":"box","text":"14, 15","page_number":231,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"018171d5-3c76-4779-870d-ed47247474df","block_type":"box","text":"IFRS","page_number":231,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"72e3a211-9501-4415-84db-1160a9f30754","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":231,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"3d7789af-c539-45ac-a4d2-23a12d2812f0","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":231,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"26425b81-113b-4268-87f8-38ead3e6bdef","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":231,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"5157adff-4a58-4284-a6f1-9590786485f6","block_type":"box","text":"and assurance standards are developed.","page_number":231,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"342c96e0-4ddb-4672-9bba-3eca59742525","block_type":"box","text":"12","page_number":231,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"13f9157d-103a-4613-985b-26d44b83dbf5","block_type":"box","text":"These Guidelines are not intended to limit the analysis of individual issues at specific companies or provide a guide","page_number":231,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"961e70f1-20e3-4c67-93d7-5a4fdd823052","block_type":"box","text":"as to how the dedicated team will engage and/or vote in every instance. The Guidelines are applied by the dedicated","page_number":231,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"83d946ec-ccc9-40f6-9272-ecf76fd037ef","block_type":"box","text":"team with discretion, on a case-by-case basis, taking into consideration the range of issues and facts specific to the","page_number":231,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"fbe5e1a0-a899-4b08-9960-57778212a1f2","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":231,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"52e20e8c-a10b-472c-a9ba-1feead1aeb57","block_type":"box","text":"13","page_number":231,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"bf3a0815-bc82-4009-a1a0-c99c791ec0ac","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":231,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"7aa9e304-d2ad-41f7-a4e7-4349e19f7c18","block_type":"box","text":"repor ting methodologies are nascent. In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":231,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"10db595e-0744-4957-b108-0750120347f2","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":231,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"7abf781a-9c74-49db-ba7c-37cfa5302b86","block_type":"box","text":"14","page_number":231,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"3dac24f8-77cc-47d8-ad98-a58a3d8a3fab","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":231,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"82e0a0f6-5940-46ac-af96-3e4cb9c23ce8","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":231,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"fb8732fe-bad8-406c-a24b-319c139b2ea7","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":231,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"f5f858fe-f457-49b3-9f63-c6b5db1addec","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":231,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"4df6cdfc-e147-44e6-8b19-469f157ffe88","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":231,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"dbf1751d-8ae5-4d2f-b9a8-b126e3e56d86","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":231,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"1538fe20-7bb0-4b69-8602-bb690d6b2624","block_type":"box","text":"15","page_number":231,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"19f1587d-2d9f-418d-87d3-376dc0e1e43d","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":231,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"0f8210b3-30b9-4b8e-ab51-94d123b9cdb9","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":231,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"f47da908-a1e9-410a-ab35-1637100d7da7","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":231,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"69ad9460-a5ff-433f-b012-ecdf1f87524a","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":231,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"1288d327-85ce-42fa-b6fe-0ae58c379f77","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":231,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"38eb550c-276e-4647-81f0-1d71ee4bfca1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":231,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e3ba8799-923b-475c-a0ba-0a3ebf2ec239","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":231,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"e9d35d10-5209-4e85-ba3c-f3e0eae7d729","block_type":"box","text":"NM1026U-5982643-231/241","page_number":231,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"782450d9-ac4e-4831-91cf-adbb8be7ce42","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":232,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"9fda3758-18c5-4d9f-9cae-92c636a3bdff","block_type":"box","text":"16, 17","page_number":232,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"195b4a9b-2703-4594-9fde-d078627091e6","block_type":"box","text":"In addition, the dedicated team looks to","page_number":232,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"2fce65f4-7d74-4cf6-80ac-e4c076ca24cb","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":232,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"c9c35a02-9743-4c8b-8204-393b2f430e15","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":232,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"4bf87354-978c-4ddb-81c0-c4f39ee3ee06","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":232,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"81e1d3ed-b6af-4eb2-a9ed-3ea7f07d264e","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":232,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"1d6f9b64-6af3-43f0-8e50-c924d603b3c9","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":232,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"1d3de8c4-239a-4e16-8ab7-63ca5619ab4e","block_type":"box","text":"18","page_number":232,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"79112f35-d692-40ef-a8b5-88e721f71f49","block_type":"box","text":"However,","page_number":232,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"f34cf768-98ed-4077-8512-94e5e4e965f9","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":232,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"bea25834-381c-4aea-b5dc-7398aec4c46f","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":232,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"10478629-8d09-497e-804f-7eae35a4b7cc","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":232,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"b1a2824b-ac08-4f68-91a1-ff0a28ba67fa","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":232,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"e1f4946c-650d-403e-9a62-515f789eae1f","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":232,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"f6326d24-b70c-4378-b1ef-5843992855f9","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":232,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"bd76287e-8178-4312-8fe3-3a888e9660e1","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":232,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"aa2cfc86-a4f3-4ecf-ae52-0bf703d6200e","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":232,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"d6ed3d89-dfb3-4c4d-85dd-615c07050578","block_type":"box","text":"transition risks.","page_number":232,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"0278c419-42f5-4ef8-a9c5-11d8b98c2a81","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":232,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"3e2b7373-6e76-40aa-9654-348a6c20b01a","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":232,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"81b9a455-cd88-478d-92d9-2b49f75dfb29","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":232,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"369f7921-0fc5-47bd-b44c-6d27aef536df","block_type":"box","text":"Transition plans","page_number":232,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"7e322840-abef-462e-b4fc-b8cce3b5ba7a","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":232,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"1c615fc8-3617-40a1-b481-ee8aa8557bdb","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":232,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"d173e476-0de8-44ff-a70a-317be49da5c4","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":232,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"70ce3ce1-747f-4c95-bbc9-1aba3290fbdb","block_type":"box","text":"(see Appendix 1).","page_number":232,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"a5af2341-faec-414d-a690-1dc018603129","block_type":"box","text":"19","page_number":232,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"1b0d380e-a3c8-49e3-85fb-51f9c42efb5d","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":232,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"4629c840-e567-48ee-9756-28c0954b35c5","block_type":"box","text":"transition plans.","page_number":232,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"fcf253a7-deb1-437c-8a24-232b18f4e479","block_type":"box","text":"20","page_number":232,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"5ba04a67-7265-436e-8904-4a87bdb08898","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":232,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"973b4e80-ec40-4be8-bc45-8bf7d8c9255f","block_type":"box","text":"repor ting approaches.","page_number":232,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"ee52f394-dafa-4c36-b0ed-f0b9b9c15e30","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":232,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"206ed812-0483-4cec-9464-54d994da510f","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":232,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"0026442a-8de3-426f-8195-f42498945751","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":232,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"01b294ec-990b-4dbf-9952-be3299adb6f9","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":232,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"8a4905a1-44a9-46e6-bc06-807037a0cb6f","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":232,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"76adc1ff-e5a3-4e60-b2e4-d0505eda70de","block_type":"box","text":"informed voting decisions.","page_number":232,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"98a8373e-bed4-4c15-bdc6-568deb99a413","block_type":"box","text":"16","page_number":232,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"f1003fad-9d19-4914-b4cf-ebad09e48009","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":232,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"e71375ab-e057-4766-b07f-a004ad96a99c","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":232,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"bf46c34e-2c23-4a8d-8386-e1603df898af","block_type":"box","text":"December 2025.","page_number":232,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"7929ab89-09b1-4418-9399-fd9b05e2cbe4","block_type":"box","text":"17","page_number":232,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"989e0b76-2cea-4f42-8cfe-fc44f496a85c","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":232,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"aa912573-42ef-475b-a6fa-3c6c60c15ae9","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":232,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"df2390aa-8e03-4ce7-b3cd-cff6c18c9655","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":232,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"b57a8b9a-bac9-4a77-a45a-cb4d116c9f7c","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":232,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"fa58ee5b-d61b-4458-949b-c48e71163425","block_type":"box","text":"18","page_number":232,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"d6f1bc10-734c-4c64-86b8-237d48d6520e","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":232,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"13141e46-b7e7-42d0-9220-7909be2b6859","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":232,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"577605d9-93f1-4484-823f-f67ca95d7df4","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":232,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"768ec3ec-f7ba-443f-a81b-2fcc48cae8d6","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":232,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"97df7d27-7458-476e-8d40-8b3e778d026b","block_type":"box","text":"material to their business models.","page_number":232,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"be98e0e3-69c5-4096-9552-1d7284b1f238","block_type":"box","text":"19","page_number":232,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"808da145-fcc1-4080-8856-0c37612d256a","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":232,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"be63f073-0ddc-42b4-8b2f-b239e31ea0f2","block_type":"box","text":"December 2025.","page_number":232,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"5678f5b8-bde7-41be-929a-318b3cbc3ff5","block_type":"box","text":"20","page_number":232,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"d0cb0745-bda8-48f9-9fa0-473b0f15c451","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":232,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"391cc514-2315-4bb3-aa83-76e7dc491568","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":232,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"b9e8d116-f97f-44ac-8b26-a70b713b08b8","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":232,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"8e5726cb-4071-4147-9fe8-3157e63c6e32","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":232,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"c72c495b-3f60-4f44-8bdb-7191b6afc1f2","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":232,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"a0ec3b74-e1a0-4dc3-896b-e9c331a2611d","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. Website accessed in","page_number":232,"box":{"x":68,"y":883,"width":821,"height":11}},{"id":"b494ff4b-249e-4372-bfb8-0f462e24f995","block_type":"box","text":"December 2025.","page_number":232,"box":{"x":70,"y":898,"width":118,"height":9}},{"id":"a4904138-e028-400a-9739-56a3edb3e8a0","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"d58337ed-02bc-41b0-aee9-0bfb87c70ecc","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 6","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"784c1eae-5f56-48a5-ba3a-a78b42cac1d9","block_type":"box","text":"NM1026U-5982643-232/241","page_number":232,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"a9b2a56d-cb22-4b7c-b187-892b27d221bd","block_type":"box","text":"Boards and directors","page_number":233,"box":{"x":69,"y":45,"width":151,"height":9}},{"id":"b32ce488-85d1-4fd1-8139-b060b15929dc","block_type":"box","text":"An effective and well-functioning board that has appropriate governance structures to facilitate oversight of a","page_number":233,"box":{"x":101,"y":67,"width":775,"height":12}},{"id":"74c2fece-cf95-4be2-9a53-baa40c2413e6","block_type":"box","text":"company’s management and strategic initiatives is critical to the company’s ability to deliver on its low-carbon","page_number":233,"box":{"x":69,"y":83,"width":782,"height":11}},{"id":"c7e8569e-48f1-4578-b9ed-bc155ccecbb5","block_type":"box","text":"transition strategy. In assessing the role and effectiveness of the board in this regard, the dedicated team seeks to","page_number":233,"box":{"x":68,"y":98,"width":825,"height":11}},{"id":"e3cbcefd-090c-4461-b117-f3f2b28c6d4c","block_type":"box","text":"understand whether:","page_number":233,"box":{"x":69,"y":113,"width":145,"height":9}},{"id":"3bae917b-f43c-482a-bd1f-c5099dbe6f56","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":136,"width":6,"height":4}},{"id":"4c60416e-cd45-41c6-937a-510e1dd14696","block_type":"box","text":"The board has clear oversight responsibilities for climate and low-carbon transition-related risks and","page_number":233,"box":{"x":101,"y":133,"width":711,"height":11}},{"id":"198aa749-6932-4140-8800-8e564eddb277","block_type":"box","text":"oppor tunities in the company’s business model. The Guidelines consider the whole board to have responsibility","page_number":233,"box":{"x":102,"y":148,"width":796,"height":11}},{"id":"b18e441b-48da-412e-bf8a-a6a4b3a695d8","block_type":"box","text":"for oversight of the company’s long-term strategy, including those aspects related to the transition to a low","page_number":233,"box":{"x":101,"y":163,"width":765,"height":11}},{"id":"a2adebc1-f892-4d32-80a9-dfc8ca63f44f","block_type":"box","text":"carbon economy.","page_number":233,"box":{"x":101,"y":178,"width":119,"height":11}},{"id":"f706742a-8b5f-41e8-b92d-67e4faf0ed89","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":201,"width":6,"height":5}},{"id":"39846115-0ef0-4b90-9c91-3ec10707c743","block_type":"box","text":"Management has established a robust low-carbon transition framework and long-term strategy, with clear","page_number":233,"box":{"x":102,"y":198,"width":747,"height":12}},{"id":"036ba26e-31c9-4b1f-83f2-497ed1635ed5","block_type":"box","text":"accountability for delivery by senior executives.","page_number":233,"box":{"x":102,"y":213,"width":333,"height":12}},{"id":"4f6a5fca-5f13-4231-855f-519286a7f086","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":237,"width":6,"height":4}},{"id":"af7a9af8-e1db-423e-ad07-bf54de59a40b","block_type":"box","text":"The capital management strategy explains how the company allocates investments to (traditional and next","page_number":233,"box":{"x":101,"y":234,"width":758,"height":11}},{"id":"a242d44a-d0a5-48e3-967e-e11703264fbb","block_type":"box","text":"generation) business lines and innovation, and returns cash to shareholders, consistent with the company’s","page_number":233,"box":{"x":101,"y":249,"width":772,"height":11}},{"id":"c543e186-03b7-45cc-bff8-6c476280c566","block_type":"box","text":"stated low-carbon transition strategy.","page_number":233,"box":{"x":102,"y":264,"width":260,"height":11}},{"id":"64a2cc5e-1171-4957-96a3-61e52333cab9","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":287,"width":6,"height":4}},{"id":"16033134-e6a9-424f-ab0a-e906cc784f70","block_type":"box","text":"The climate and low-carbon transition risks most likely to significantly impact the business are integrated into the","page_number":233,"box":{"x":101,"y":284,"width":807,"height":11}},{"id":"2a98ed04-e5ce-4cb3-ba1f-bbe77cd1cb6a","block_type":"box","text":"company’s enterprise risk management processes and repor ting.","page_number":233,"box":{"x":101,"y":299,"width":465,"height":11}},{"id":"189eac6d-a397-453b-9f1c-ad98340b9044","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":322,"width":6,"height":5}},{"id":"26a5739d-5845-4e06-8bba-0089816e6cc1","block_type":"box","text":"The company has set scope 1 and 2 GHG emissions reduction targets, science-based and independently verified","page_number":233,"box":{"x":101,"y":319,"width":804,"height":12}},{"id":"6e118b3f-eeed-4621-9c90-1a94eb89ed1a","block_type":"box","text":"where possible, against a baseline, that are consistent with the ambition to limit average global temperature rise","page_number":233,"box":{"x":101,"y":335,"width":806,"height":11}},{"id":"c3c7d548-0ce2-424b-b92e-2cb4baad16f9","block_type":"box","text":"to no more than 1.5°C above pre-industrial levels.","page_number":233,"box":{"x":101,"y":350,"width":354,"height":10}},{"id":"e4edc206-02dc-4cfb-b825-01240a686364","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":373,"width":6,"height":4}},{"id":"3231a186-e9ec-4b2a-bea3-5d1e22ff253f","block_type":"box","text":"There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets over time and its","page_number":233,"box":{"x":101,"y":370,"width":788,"height":11}},{"id":"d0f49351-ad2b-435e-a615-5fa43da6fbe4","block_type":"box","text":"long-term low-carbon transition strategy.","page_number":233,"box":{"x":102,"y":385,"width":282,"height":11}},{"id":"15d88539-1f54-4f3b-8d72-f3273cde414a","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":408,"width":6,"height":4}},{"id":"208ed0cb-b994-4d46-8e72-979f953336d4","block_type":"box","text":"The company is monitoring its most significant scope 3 emissions and disclosing these where it is confident in","page_number":233,"box":{"x":101,"y":405,"width":790,"height":11}},{"id":"395e565d-87ac-42fb-b766-da15b8337b16","block_type":"box","text":"the data. Given for thcoming regulatory requirements in cer tain jurisdictions, some companies are voluntarily","page_number":233,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"ac9b94d4-9ac3-4ad9-9989-f2aa8d4b520e","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":233,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"77f5b396-c5db-47b8-b1de-da245d70f21d","block_type":"box","text":"with the different constituents in their value chain.","page_number":233,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"90addfc8-3374-4073-b9ff-972b1e1e1d3e","block_type":"box","text":"21","page_number":233,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"fdeac1ad-ca4c-4735-bab6-de557a2eb8c9","block_type":"box","text":"•","page_number":233,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"c46ba11c-21f6-4a52-92fe-6152c4e56ae5","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":233,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"fc6bf21a-786d-4256-8ede-999e20abc23e","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":233,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"0f2e087c-14b7-4aa0-a332-5b7f45046508","block_type":"box","text":"22","page_number":233,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"33c18c9a-12d2-46e5-b84b-5c8273beea3e","block_type":"box","text":"The dedicated team looks for","page_number":233,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"13cdffb5-0939-4aba-b8dc-9547f7f22986","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":233,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"eac68ad1-694b-4c06-8058-f5710c2702e5","block_type":"box","text":"related to the low-carbon transition.","page_number":233,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"060ed774-45a4-4e8a-851b-c84db067fc18","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":233,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"59b221c1-3b2a-44cf-9db6-981406d77094","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally suppor ts non-executive directors standing for","page_number":233,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"74a12166-3628-4801-8ed5-daf34ac728a9","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":233,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"95f1deac-c609-478c-8350-372186880a06","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":233,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"d13af930-1f56-4718-989c-31050653290f","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":233,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"97da9f78-db01-4c3e-923c-b51b5307d32e","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":233,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"dc719677-e07e-4ca4-b5b4-e091259ce714","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":233,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"42076b5e-5e77-4094-a241-99aef7dcb115","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. In cer tain markets, the","page_number":233,"box":{"x":69,"y":659,"width":808,"height":11}},{"id":"c666670c-2d4f-400e-804f-ad7b4b3957d8","block_type":"box","text":"team may withhold suppor t for the discharge of the supervisory board or equivalent and/or board repor ts.","page_number":233,"box":{"x":68,"y":675,"width":758,"height":11}},{"id":"5f0aefc8-16dc-4d05-a370-0e31e36bdb3b","block_type":"box","text":"23","page_number":233,"box":{"x":828,"y":675,"width":9,"height":4}},{"id":"daedaf4f-c476-40fd-b1ec-cf871cabdcc5","block_type":"box","text":"21","page_number":233,"box":{"x":69,"y":704,"width":9,"height":5}},{"id":"114d53eb-b444-4409-990c-1c8cf4b94791","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":233,"box":{"x":84,"y":704,"width":825,"height":11}},{"id":"706d8ddb-9229-406e-802b-4dd7d601f411","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":233,"box":{"x":70,"y":719,"width":835,"height":11}},{"id":"4942702a-3df5-44a8-bb0c-00e9d598df3f","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":233,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"2e988cd0-9c7c-4e1c-8bc2-98fbfdf1ba03","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":233,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"79fde96e-9a6b-4177-b3e2-bb4bd6c8d736","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":233,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"923666a1-be77-4eaf-b943-db7c8f354c24","block_type":"box","text":"Website accessed in December 2025.","page_number":233,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"65ac61b5-6786-41a6-82a9-a55d933d2c51","block_type":"box","text":"22","page_number":233,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"833ae94a-9503-4dce-a2a2-645c52d6f778","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":233,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"a59d487e-ea47-41a8-9fa2-4c53eeaee6ff","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":233,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"41e989a5-5a8b-4bc9-b7ba-66e34ed45f56","block_type":"box","text":"23","page_number":233,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"e2202012-9218-4bca-8ce3-f08bad714fe2","block_type":"box","text":"Board repor t votes are generally advisory and relate to repor ts issued by the board of directors that may contain","page_number":233,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"fe818d77-e610-4681-b26e-9abe58589fde","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":233,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"3f0fab5c-1d1a-4df6-9c8f-02bca89e6dce","block_type":"box","text":"BlackRock Investment Stewardship","page_number":233,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6c904d95-8bd8-4225-9105-1141ff265428","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":233,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"c2d5c7ad-da57-4d9b-a7ea-9d39a4582edd","block_type":"box","text":"NM1026U-5982643-233/241","page_number":233,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"07011feb-c309-4950-be09-2566a0e10c55","block_type":"box","text":"Where the dedicated team has not suppor ted director elections over climate concerns in a prior year, and the","page_number":234,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"ce6f5941-bc90-4653-8115-9527eeb7d210","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":234,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"c3c6f07b-e24f-426d-9fbb-339d5b57ec2b","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":234,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"234f66af-f56e-4696-846c-01af16852707","block_type":"box","text":"24","page_number":234,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"43a6c9e9-7c29-4519-852e-8bad969f830e","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":234,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"045ea3fb-aabd-4832-87f7-170cb4667f2b","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":234,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"37864af8-88c6-477c-8e70-f88f2b45628f","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":234,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"d8fea568-2d27-4e9a-8076-0daa86954b10","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":234,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"9ef75338-3e60-4570-a96e-c6a8c6ed1b43","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":234,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"0fd79286-ffb3-4679-9116-0718ef792b25","block_type":"box","text":"strategy proposal if, in the team’s assessment based on these Guidelines, the strategy is aligned with the low-carbon","page_number":234,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"f2d791a6-519c-46ce-8b3e-59d0cd97782d","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":234,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"60426ae6-e9ee-4a5f-8574-bc0b1f87311e","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":234,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"b97f50f9-92c6-4c66-ba3a-41451e3140a3","block_type":"box","text":"transition plan and targets.","page_number":234,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"cefd6b69-5bf1-4082-b0a5-53e9cf7c78b9","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":234,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"7c3d346a-dd97-4862-aeba-9398ff9cb126","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":234,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"5f9d1159-ee1f-4554-84a0-5db4953e53e5","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":234,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"906a7817-4e2e-479c-a141-4525eb29b870","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":234,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"77d50d07-4f9d-4493-8375-22bff3a4d6c2","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":234,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"f93c8a80-27ae-4972-b41e-8189863ee872","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in suppor t of a proposal, it is not necessarily","page_number":234,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"2a185ab1-1beb-43cd-b585-af34852c5d87","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or suppor ting statement of the proponent.","page_number":234,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"5c895224-abd6-46e5-99ea-6dfc57aa82a0","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":234,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"2ce05b88-0f99-48ce-9e18-6d038e84b69d","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":234,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"0d341e5e-ac8d-4ef6-91dd-f14374891bf8","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":234,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"52fb0bee-4e7e-4eac-8fa7-a1959d7dcc2f","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":234,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"c0d9ef0b-51bc-412b-b472-0ce295df5344","block_type":"box","text":"•","page_number":234,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"6355278a-8e6a-447c-a29b-083fc4e49727","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":234,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"37971f54-ef59-4941-b174-c4430958e7da","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":234,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"7cba0507-b788-4f66-9080-31940f3e703b","block_type":"box","text":"•","page_number":234,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"7c71197f-648f-40e5-a384-55d5a3dda416","block_type":"box","text":"Align scope 1 and 2 GHG emissions reduction targets to, and/or discuss how their targets align with, a long-term","page_number":234,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"0cc3f456-5e24-4f42-8578-0d861f4ee4a1","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":234,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"122550fc-3a5f-4875-852a-b580bb4c33ac","block_type":"box","text":"•","page_number":234,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"60d5e39e-a584-49be-a849-ac7222ab5b2e","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":234,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"1367a390-45b7-4001-98b2-fafd66a21e31","block_type":"box","text":"•","page_number":234,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"76099ebe-99cb-48a1-943e-02ab8177ef29","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":234,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"78bfd890-4f22-4e5a-ad44-6c28431513bc","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":234,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"a026e677-70e4-4308-b6a2-1861825720a2","block_type":"box","text":"25","page_number":234,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"14371fcc-490f-4508-9808-6d71a2533d20","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":234,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"877cd26b-b183-4b60-bb10-c09ea7bf24d4","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":234,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"7077bb11-c7db-43ba-9b48-29791e22b015","block_type":"box","text":"RELATED MATTERS","page_number":234,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"c78ba848-ddd0-4946-b9ab-a81c5e751124","block_type":"box","text":"There are other business items not covered above that may be put to a shareholder vote that could address","page_number":234,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"025547ca-7024-4512-a673-0583dd715f4f","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":234,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"13942586-c6a4-4af7-9b4c-87ad6dedbd93","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":234,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"11430e9e-ba57-4a12-a490-19697368a775","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":234,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"d8750fe1-93ce-4d4b-9912-641c6ae3e1e1","block_type":"box","text":"Executive compensation","page_number":234,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"232ce38a-594e-4c65-bde8-3997d6ec6314","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":234,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"9ef817cf-f5c3-464a-8962-7acc7177c23b","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":234,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"981268c9-01b8-4cc1-a840-4870ef3e0242","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":234,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"c6166319-a8d4-4e08-82b1-f59a65673918","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":234,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"70cf39c9-fe24-41f8-8736-64749d1deccf","block_type":"box","text":"24","page_number":234,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"7e939d20-1398-4d29-a089-cf2fd135d7ed","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":234,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"8c44f4d4-430c-4e74-b425-d8e46985903d","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":234,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"78c5b533-9482-48ce-81b5-fcdccdac041d","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":234,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"e35ca069-3d68-4111-9be3-9404d92971f5","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":234,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"8fd6bb5a-e76b-46ed-8169-27af998411f7","block_type":"box","text":"25","page_number":234,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"b8fa0367-28ea-4920-8d5a-cac42ef3b801","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":234,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"487a447b-ce18-443d-89a4-c2fc71c15c8c","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":234,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"7e414b59-1c30-40c1-be1b-ff40a47dc959","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0c559b38-59bd-4375-aa52-4460ec021971","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":234,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"30cb8a2a-6a33-44ea-a4e1-22e873ff1628","block_type":"box","text":"NM1026U-5982643-234/241","page_number":234,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"9ffd9241-6b4e-4bbe-9cfa-261d43cc6811","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":235,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"f792102d-1a0b-4294-8b9d-fd7e534f29c1","block_type":"box","text":"strategy and risk management.","page_number":235,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"a0255951-a017-4f9a-af3b-6cc4ff054ede","block_type":"box","text":"Auditors and audit-related issues","page_number":235,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"e9ad1766-cc93-4346-9802-8930717b057b","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":235,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"87e22e64-296d-48b2-bf6c-9ea6d3673f55","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":235,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"60e5796a-dcf6-468a-984f-cf17a28e1c49","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":235,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"737616b7-7886-418d-80ed-37b20da87981","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":235,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"12a78895-397c-4daf-ad3a-5e910d5f0388","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":235,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"2dc0218d-a7b6-4524-8b85-d5eb3557ded2","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":235,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"bcfca9ea-a44e-4366-8869-b73d3599b8a8","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":235,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"6b02878d-8046-4d74-9b13-8ea104fb1799","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":235,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"a1bc8c6a-ec85-410d-9284-5d503aacd6b8","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":235,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"98c6c097-6177-488f-b013-999b894a0332","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":235,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"9fd8ae11-3269-4ec6-a2f7-ed156eea2996","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":235,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"efc1bf79-b691-49ac-9db0-f15a5847675b","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":235,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"891ed54d-6ae2-4e91-ba56-0b919e0c6e70","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":235,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"7d2761b5-77b6-4c26-8c19-529be568758f","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":235,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"9e9ce5ad-185a-4038-9771-1cc1f959f83a","block_type":"box","text":"stakeholders.","page_number":235,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"ab4c12c7-3b17-4c0a-9886-bebc044b3929","block_type":"box","text":"26","page_number":235,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"a5757675-6546-4492-b83b-6e5a5f94e4c6","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":235,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"757697b5-4fdc-470b-8f15-2219baa8ec81","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":235,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"8c37a11c-2920-444d-ba77-927d3b5ce8cb","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":235,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"2ff5d844-b63b-4c0c-91de-63ffd1785965","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":235,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"e3a1d676-8bf0-415e-b46c-6faddbb0c2c2","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":235,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"e4601a4b-969c-449c-a26c-4fac7221a71a","block_type":"box","text":"26","page_number":235,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"eeb5e4fb-26e4-4b0e-b7cc-f171a666f00e","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":235,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"87af544b-021f-405d-90da-d8a85a12d0c5","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":235,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"23943e67-dde9-423e-889b-3b09c7ff1a4e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":235,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5d8f7503-55cb-432b-b585-6eacf414b3c5","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":235,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"97e22620-e30b-4e72-8a3c-b44e7e2f8d02","block_type":"box","text":"NM1026U-5982643-235/241","page_number":235,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"56fad997-358d-41b4-845e-4dfbfcd47697","block_type":"box","text":"Appendix 1","page_number":236,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"8a84b621-a581-4034-ae59-252ad9ee8ce4","block_type":"box","text":"Terminology","page_number":236,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"1399bb80-0476-4d70-bd43-af541a6962b0","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":236,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"c5941c9e-6efd-4f60-88fd-feec72bb5aa5","block_type":"box","text":"Climate risk:","page_number":236,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"565ee7c7-bd57-4009-b9e8-1222ddf5c576","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":236,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"6f636de4-dfd6-410c-8a34-ff8a1ddb7c69","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":236,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"ca0de994-9570-4680-a99c-2b52dc581799","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":236,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"cd8c8789-a30f-44bb-bcbf-46231b57fb86","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":236,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"0f4a55f6-376f-4fbe-8942-f256a2d23958","block_type":"box","text":"The global economic shift toward lower","page_number":236,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"a86c2d51-eda5-472a-85d0-c1cc1f0a6ca0","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":236,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"f4034495-da2f-4586-8371-b184b200cb90","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":236,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"3046ecaf-e161-4b84-a6e6-e27d15515bff","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":236,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"8258594a-10c0-4226-86f9-8eda6df55a04","block_type":"box","text":"Decarbonization:","page_number":236,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"d26adfe0-c360-4123-a236-3d658440afa0","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":236,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"64616a3c-1ff7-402d-8ba6-3e15a9bd5b47","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":236,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"3d5f0bfc-10a6-4400-8e29-d199d30954b9","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":236,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"61a37fa9-2740-431f-a54e-84c5d2b7508f","block_type":"box","text":"e.g., methane.","page_number":236,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"a74fb6ce-b860-4033-abf2-1ad5c8a4c531","block_type":"box","text":"Climate-related risks and opportunities:","page_number":236,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"2cc27e06-4031-4326-b203-6705f997cdc9","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":236,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"4e26e982-78f5-4f9f-aff8-88239b44cb7e","block_type":"box","text":"to a low-carbon economy, including transition risks and oppor tunities and physical risks and oppor tunities in adapting","page_number":236,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"0dee8feb-5bac-4992-b225-916fbda98d0e","block_type":"box","text":"to physical climate change.","page_number":236,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"0f61cc29-621a-49f6-87e8-6872ecb7800a","block_type":"box","text":"Climate-related transition plan:","page_number":236,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"5cd6c691-8dd3-41dd-8109-262fc85002ef","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":236,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"9e35f4a9-5a83-48cc-bf05-1ddea9193abb","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":236,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"fdc04696-1553-46d3-b823-d7bf2bd49f4d","block_type":"box","text":"greenhouse gas emissions.”","page_number":236,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"c6df8608-20e8-4a45-a3d5-07be887a6a5a","block_type":"box","text":"27","page_number":236,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"6f708ec5-e057-4438-abd7-1238f44ae8d3","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":236,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"aba1c023-475c-42e3-81dd-9e9ee7583054","block_type":"box","text":"Targets that “","page_number":236,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"27b299c7-dd95-42f8-84c2-d1abe0cb8bd6","block_type":"box","text":"are in line with what the latest climate science","page_number":236,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"fc9bd9b3-4a1a-44b6-a62d-c66b5693378d","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":236,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"5aa062e4-7057-46f5-b9f7-7e1e57b9c064","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":236,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"953ef00d-e034-4eca-ad1a-f6174c5a867a","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":236,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"df2ac83e-02fa-4300-8f7f-36cdc6d5cdde","block_type":"box","text":"with the Paris Agreement goals.”","page_number":236,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"230fae3e-9897-44c4-9c6d-5f88dbac51d0","block_type":"box","text":"28","page_number":236,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"4dbdf30e-02dd-46b2-82cf-e0de0b410b02","block_type":"box","text":"Scope 1:","page_number":236,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"d1548840-2add-4070-8cec-ad5912c503d4","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":236,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"f76afa32-1eb0-4318-af56-7654b4ecd246","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":236,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"366dff57-f0c4-430c-a43d-242d80f148ba","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":236,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"ef07eb66-587a-40b3-924e-f0ba4206cf41","block_type":"box","text":"29","page_number":236,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"4c3f8ed6-f36b-48c7-861e-0803f80e6d4f","block_type":"box","text":"Scope 2","page_number":236,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"28a80a49-8e41-4904-9a61-d75179bc2f2b","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":236,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"49b13bc8-d373-4060-939f-8874eecfed7a","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":236,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"69d1880f-1dd5-4a9f-adce-3f2751e21ccf","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":236,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"c4c46bc9-9870-4726-9549-e91a34531606","block_type":"box","text":"30","page_number":236,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"545042c4-97ed-4ca8-9306-5c12ffefc960","block_type":"box","text":"Scope 3:","page_number":236,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"943b1311-59d7-421a-9fe2-4095d8d65975","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":236,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"ecd8bff7-c101-43ff-9bf1-d4399fcebee1","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":236,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"86bed109-c1ea-4608-b416-af07b404a5c5","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":236,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"7ef0aaed-4953-4866-9436-8d9127044c18","block_type":"box","text":"31","page_number":236,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"cc26d02d-77cd-44ed-aad3-bdbdd7cb1b24","block_type":"box","text":"27","page_number":236,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"29b40248-dfa5-4824-8062-c60c7f04579a","block_type":"box","text":"As defined by the International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":236,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"dd1a51cd-224a-49b7-a715-ce57b9b099e1","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":236,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"20fa142f-126c-4cc0-bae7-b24a6e8f09a3","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":236,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"c289a492-715a-41a4-b5cc-06848c0f892a","block_type":"box","text":"28","page_number":236,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"5360e5f2-8bc6-4d14-9d0d-37931dca1b81","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":236,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"bed03017-d89f-4e03-801b-b18c15647181","block_type":"box","text":"enables companies and financial institutions worldwide to play their par t in combating the climate crisis. We develop","page_number":236,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"c65ecc6c-602b-41ed-b24f-3e4e8bf00022","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":236,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"773ee71b-0b6c-4141-b0a8-85a9e61cced9","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":236,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"5fcd9530-050e-4e0e-bc4c-01d466722828","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 2025.","page_number":236,"box":{"x":69,"y":787,"width":666,"height":11}},{"id":"f9925646-7ee8-4296-9f76-68ef6eee070a","block_type":"box","text":"29","page_number":236,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"2b600d71-5533-49cb-a917-2c05de5b8411","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Repor ting Standard,” Revised Edition.","page_number":236,"box":{"x":84,"y":805,"width":670,"height":11}},{"id":"6a8be1d5-5edb-4f5a-9223-bbd513967e9c","block_type":"box","text":"30","page_number":236,"box":{"x":69,"y":823,"width":9,"height":4}},{"id":"e83d5eb3-8d06-480c-a758-90e4c2c8220c","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Repor ting Standard,” Revised Edition.","page_number":236,"box":{"x":84,"y":822,"width":670,"height":12}},{"id":"607bb1a4-deaa-4bad-9c90-989e32b7f3dc","block_type":"box","text":"31","page_number":236,"box":{"x":69,"y":840,"width":9,"height":5}},{"id":"3df14aae-8490-4f1a-9e1d-068dbc8d3a69","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Repor ting Standard,” Revised Edition.","page_number":236,"box":{"x":84,"y":840,"width":670,"height":11}},{"id":"b4fd2123-1bd5-4663-869d-7fd66433c05c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":236,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0a22d630-f16c-46a5-a805-87998d4ec366","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 10","page_number":236,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"92242f52-a52d-4bf2-88c8-e59e2edf445f","block_type":"box","text":"NM1026U-5982643-236/241","page_number":236,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"9f0787e4-e263-452a-b496-2a00f39f8f8a","block_type":"box","text":"Appendix 2","page_number":237,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"51f722f6-777c-45e8-9bed-360c63ee335f","block_type":"box","text":"Comparison of key differences between how the BIS’ Benchmark Policies considers climate-related risks,","page_number":237,"box":{"x":101,"y":67,"width":771,"height":11}},{"id":"d503738a-c942-49c4-b564-8c9fe444b59d","block_type":"box","text":"where appropriate, and these Guidelines:","page_number":237,"box":{"x":68,"y":83,"width":299,"height":10}},{"id":"e490e947-1004-4d59-8cd8-3775a1add127","block_type":"box","text":"32","page_number":237,"box":{"x":368,"y":83,"width":10,"height":4}},{"id":"2473104e-b1d0-4b83-bda3-32be51f1b41e","block_type":"box","text":"BIS Benchmark Policies","page_number":237,"box":{"x":302,"y":106,"width":174,"height":9}},{"id":"8a719eee-5145-4a4f-a971-92768b3755fa","block_type":"box","text":"33","page_number":237,"box":{"x":477,"y":107,"width":9,"height":4}},{"id":"1bceec57-07aa-4a99-a14f-d6ae2aae4205","block_type":"box","text":"Decarbonization Guidelines","page_number":237,"box":{"x":643,"y":106,"width":196,"height":9}},{"id":"46008a71-3826-4b38-af94-babb08f8eae2","block_type":"box","text":"Key concepts","page_number":237,"box":{"x":75,"y":122,"width":98,"height":11}},{"id":"6ce8eeb0-63a8-4538-859e-656db912fbb6","block_type":"box","text":"Focuses on financial per formance","page_number":237,"box":{"x":232,"y":121,"width":240,"height":11}},{"id":"34e51a6b-5aeb-4c2e-ae5e-ae61c20ab4a0","block_type":"box","text":"and engages companies on","page_number":237,"box":{"x":231,"y":137,"width":195,"height":11}},{"id":"32329e8c-33f7-4e79-84e5-ae4899382abe","block_type":"box","text":"climate and transition topics when","page_number":237,"box":{"x":231,"y":152,"width":244,"height":11}},{"id":"f55fd045-8e91-45a3-9746-7e996532c698","block_type":"box","text":"material to their business","page_number":237,"box":{"x":232,"y":167,"width":181,"height":9}},{"id":"df1107a1-b1bd-4716-9939-eaea24c8f159","block_type":"box","text":"Prioritizes the disclosure of how a","page_number":237,"box":{"x":232,"y":186,"width":239,"height":9}},{"id":"c48571d0-5c0b-4e3b-a5ba-c8744a7e2ca4","block_type":"box","text":"company is managing material","page_number":237,"box":{"x":231,"y":201,"width":215,"height":11}},{"id":"2812ccdf-1679-4666-8065-6298c7e1ef99","block_type":"box","text":"climate and transition-related risks","page_number":237,"box":{"x":231,"y":216,"width":246,"height":9}},{"id":"68270abc-c08a-4859-a094-96426fe8dd94","block_type":"box","text":"and oppor tunities","page_number":237,"box":{"x":231,"y":231,"width":125,"height":11}},{"id":"964124d0-ac7e-4b18-99db-2852d365d946","block_type":"box","text":"Considers both financial per formance","page_number":237,"box":{"x":578,"y":121,"width":267,"height":11}},{"id":"4d34e661-7f6b-4088-b185-1ee0496a7b08","block_type":"box","text":"and decarbonization objectives","page_number":237,"box":{"x":578,"y":137,"width":218,"height":11}},{"id":"d95080ae-cc63-4dd1-8e9a-10f5b5fa1f11","block_type":"box","text":"consistent with funds’ and clients’","page_number":237,"box":{"x":577,"y":152,"width":244,"height":9}},{"id":"71813961-41f0-4a67-b691-db5ca4e0bf46","block_type":"box","text":"investment objectives","page_number":237,"box":{"x":578,"y":167,"width":153,"height":11}},{"id":"cdca49fc-287e-4a1d-a214-466d0ee02d91","block_type":"box","text":"Assesses the alignment of a","page_number":237,"box":{"x":577,"y":186,"width":203,"height":11}},{"id":"3c085507-9196-4001-a99c-0c4c40658900","block_type":"box","text":"company’s business model","page_number":237,"box":{"x":577,"y":201,"width":193,"height":11}},{"id":"af531718-04b2-4c8f-adc8-1070fdf31acd","block_type":"box","text":"with the ambition to limit global","page_number":237,"box":{"x":577,"y":216,"width":223,"height":11}},{"id":"d8938a78-822f-4388-834b-5111f781c1a8","block_type":"box","text":"average temperature rise to","page_number":237,"box":{"x":578,"y":231,"width":196,"height":11}},{"id":"2c354e6f-0217-45db-b18b-a0e55976e84b","block_type":"box","text":"1.5°C above pre-industrial levels","page_number":237,"box":{"x":578,"y":246,"width":230,"height":11}},{"id":"f11a1189-1712-488f-b14d-26c79d9e1f86","block_type":"box","text":"Prioritized","page_number":237,"box":{"x":75,"y":269,"width":72,"height":9}},{"id":"1bc17a19-d85e-4c37-a543-6d75b2ab707c","block_type":"box","text":"companies for","page_number":237,"box":{"x":74,"y":284,"width":103,"height":11}},{"id":"becc3109-2554-459f-838a-d7aa37412308","block_type":"box","text":"climate-related","page_number":237,"box":{"x":74,"y":299,"width":109,"height":9}},{"id":"20a1d273-2743-4ef1-9011-79bc73ca4e17","block_type":"box","text":"engagement","page_number":237,"box":{"x":74,"y":315,"width":90,"height":10}},{"id":"8520f5b2-3d6e-4d2d-9718-c2ec74195520","block_type":"box","text":"Largest Scope 1 and 2 GHG emitters Largest total value chain GHG","page_number":237,"box":{"x":232,"y":269,"width":557,"height":11}},{"id":"9954a5ed-d1d5-45d7-98cb-fd756246ab37","block_type":"box","text":"emitters (Scope 1, 2, and 3)","page_number":237,"box":{"x":578,"y":284,"width":201,"height":11}},{"id":"b566588c-a1da-4ef3-9ec2-74c5ed3975de","block_type":"box","text":"Emissions","page_number":237,"box":{"x":75,"y":337,"width":72,"height":9}},{"id":"25dbddc6-5e51-490c-8b03-ac755798373a","block_type":"box","text":"reporting","page_number":237,"box":{"x":75,"y":352,"width":66,"height":11}},{"id":"31196911-5848-450f-a1c6-cecfbed6ca94","block_type":"box","text":"Seeks repor ting of Scope 1 and 2 Seeks repor ting of Scope 1, 2 and","page_number":237,"box":{"x":231,"y":337,"width":592,"height":11}},{"id":"7d7bec63-6c5b-4ce7-b1ea-dd4d5bd36b4a","block_type":"box","text":"significant 3","page_number":237,"box":{"x":578,"y":352,"width":86,"height":11}},{"id":"de31168e-1222-4851-9007-182cceace0b0","block_type":"box","text":"Emissions targets","page_number":237,"box":{"x":75,"y":375,"width":130,"height":11}},{"id":"dd50d207-ff65-40b5-86f2-a3e97192f8dc","block_type":"box","text":"& decarbonization","page_number":237,"box":{"x":74,"y":390,"width":131,"height":9}},{"id":"b2b403b6-6600-45d9-9236-fe11ad60c6a7","block_type":"box","text":"efforts","page_number":237,"box":{"x":74,"y":405,"width":48,"height":9}},{"id":"d069925a-310c-4094-bac8-4ffe6e2e481e","block_type":"box","text":"Seeks the disclosure of Scope 1 and","page_number":237,"box":{"x":231,"y":375,"width":262,"height":11}},{"id":"cd44d707-4710-482d-819c-ddf1633b4e95","block_type":"box","text":"2 targets","page_number":237,"box":{"x":231,"y":390,"width":64,"height":11}},{"id":"25054341-2f49-4d2f-9308-9538c983439a","block_type":"box","text":"Seeks Scope 1 and 2 targets and","page_number":237,"box":{"x":578,"y":375,"width":239,"height":11}},{"id":"94ef6a51-b88b-4c73-b80e-84f47cc6904a","block_type":"box","text":"assesses decarbonization effor ts","page_number":237,"box":{"x":578,"y":390,"width":238,"height":9}},{"id":"17ba06aa-780e-41b8-a399-ac1b3a7aa679","block_type":"box","text":"Temperature &","page_number":237,"box":{"x":74,"y":428,"width":108,"height":11}},{"id":"f41a5d6e-6b86-4ef7-a991-ff4714d81be2","block_type":"box","text":"scenario","page_number":237,"box":{"x":74,"y":443,"width":61,"height":9}},{"id":"956bd0db-442c-4d2d-9e72-a6895a993ef8","block_type":"box","text":"alignment/","page_number":237,"box":{"x":74,"y":458,"width":82,"height":11}},{"id":"3c118c98-ab4b-473d-887d-53ad339dafeb","block_type":"box","text":"pathways","page_number":237,"box":{"x":75,"y":473,"width":68,"height":11}},{"id":"9ddbd0c1-8701-4a89-a63c-a40a3d6bb27f","block_type":"box","text":"Seeks disclosure from companies","page_number":237,"box":{"x":231,"y":428,"width":241,"height":11}},{"id":"acb2f9e3-940f-40ee-8c5e-52a2673406fc","block_type":"box","text":"that identifies and discusses the","page_number":237,"box":{"x":231,"y":443,"width":233,"height":9}},{"id":"5788acbc-9a57-41c7-bcad-b50127ce483f","block_type":"box","text":"most plausible decarbonization","page_number":237,"box":{"x":232,"y":458,"width":219,"height":11}},{"id":"57613bf5-dce3-4cb5-8c75-37151edd0cea","block_type":"box","text":"pathway","page_number":237,"box":{"x":232,"y":473,"width":57,"height":11}},{"id":"3084571a-841b-4b75-ae08-fc3a2a11c74f","block_type":"box","text":"Assesses temperature and","page_number":237,"box":{"x":577,"y":428,"width":191,"height":11}},{"id":"dfe4f87d-0fd2-4b6f-98ae-865fba7c3229","block_type":"box","text":"scenario alignment/pathways","page_number":237,"box":{"x":578,"y":443,"width":209,"height":11}},{"id":"5065eacf-03f7-4d16-a269-8aa7d4730b5e","block_type":"box","text":"to 1.5°C degrees","page_number":237,"box":{"x":577,"y":458,"width":121,"height":11}},{"id":"e62c6be4-514d-4d39-8f57-af44ba126676","block_type":"box","text":"Science-based","page_number":237,"box":{"x":74,"y":496,"width":104,"height":9}},{"id":"5819e73c-8b4a-4996-af3f-60cd85bb703e","block_type":"box","text":"targets","page_number":237,"box":{"x":74,"y":511,"width":53,"height":11}},{"id":"a2e6228e-c83a-4754-8fb3-77714435ac49","block_type":"box","text":"commitments &","page_number":237,"box":{"x":74,"y":526,"width":116,"height":9}},{"id":"53f9b174-024b-494b-bfc4-55c4fd420ba2","block_type":"box","text":"verifications","page_number":237,"box":{"x":74,"y":541,"width":89,"height":9}},{"id":"d892ef2d-e610-4532-9360-f5b1b4c3f751","block_type":"box","text":"Disclosure topic but not vote","page_number":237,"box":{"x":232,"y":496,"width":203,"height":11}},{"id":"2183cc2b-251e-4225-80fd-92fdad375204","block_type":"box","text":"escalation criteria","page_number":237,"box":{"x":231,"y":511,"width":126,"height":9}},{"id":"b2f8d0f1-2f43-4b10-a2a2-ada9d59b6bbd","block_type":"box","text":"Seeks science-based targets and","page_number":237,"box":{"x":578,"y":496,"width":235,"height":11}},{"id":"77919f79-1df6-48fe-b995-9e2406dbbe44","block_type":"box","text":"verifications where possible; may","page_number":237,"box":{"x":577,"y":511,"width":237,"height":11}},{"id":"1d87cf81-d829-4132-869a-1f7f76efdff0","block_type":"box","text":"take voting action where absent","page_number":237,"box":{"x":577,"y":526,"width":227,"height":11}},{"id":"efc6f434-aab6-4f4d-84f7-4db293e79c25","block_type":"box","text":"Company’s role in","page_number":237,"box":{"x":74,"y":564,"width":130,"height":11}},{"id":"a5b5a011-c7b2-4dcc-9dab-84d2add07fa5","block_type":"box","text":"the transition","page_number":237,"box":{"x":74,"y":579,"width":98,"height":9}},{"id":"0f8fcaaa-0c83-4b1b-867f-29ae50c3ed2e","block_type":"box","text":"Disclosure topic but not vote","page_number":237,"box":{"x":232,"y":564,"width":203,"height":11}},{"id":"cb234ac5-c8d3-41a3-80a1-63b20c05062b","block_type":"box","text":"escalation criteria","page_number":237,"box":{"x":231,"y":579,"width":126,"height":9}},{"id":"32a3a49d-3913-4a48-8409-91c620749505","block_type":"box","text":"Assesses activities benefitting from","page_number":237,"box":{"x":577,"y":564,"width":254,"height":11}},{"id":"1c20a19a-97ef-45ab-b66f-c61a85f59aa4","block_type":"box","text":"and/or contributing to the transition","page_number":237,"box":{"x":578,"y":579,"width":254,"height":11}},{"id":"c78f0885-3d06-4336-9ba7-b30d7434ccb4","block_type":"box","text":"to a low-carbon economy","page_number":237,"box":{"x":577,"y":594,"width":176,"height":11}},{"id":"45cb50de-59e0-4bd9-8df7-b3c3eb0060f4","block_type":"box","text":"Shareholder","page_number":237,"box":{"x":74,"y":617,"width":87,"height":9}},{"id":"f1b2bff6-3d1f-45cf-b4bd-5e50902bc7bd","block_type":"box","text":"proposals","page_number":237,"box":{"x":75,"y":632,"width":69,"height":11}},{"id":"33495b3c-9a6c-428c-89fd-1791784a5d0e","block_type":"box","text":"Case-by-case approach with focus","page_number":237,"box":{"x":231,"y":617,"width":240,"height":11}},{"id":"31100c66-2f11-43bb-9fff-74676a1372aa","block_type":"box","text":"on implications for long-term","page_number":237,"box":{"x":231,"y":632,"width":202,"height":11}},{"id":"ebed9795-720f-4e2f-bf05-07051e44a807","block_type":"box","text":"financial value creation","page_number":237,"box":{"x":231,"y":647,"width":163,"height":9}},{"id":"cf362518-d8b9-4469-8c9b-2dbbabc77035","block_type":"box","text":"No suppor t for shareholder","page_number":237,"box":{"x":232,"y":666,"width":192,"height":11}},{"id":"5dd31e8a-5654-4882-9277-74a067499626","block_type":"box","text":"proposals that seek to direct","page_number":237,"box":{"x":232,"y":681,"width":205,"height":11}},{"id":"17a6400d-eef7-4167-86ef-2e1b6fa084f4","block_type":"box","text":"management strategy","page_number":237,"box":{"x":232,"y":697,"width":153,"height":10}},{"id":"670fcd4f-6ee6-4140-a2ad-83d4df521e2a","block_type":"box","text":"Case-by-case approach with","page_number":237,"box":{"x":578,"y":617,"width":195,"height":11}},{"id":"1ffd3335-6a49-46bf-9f3c-39c507d454f3","block_type":"box","text":"fur ther consideration given to","page_number":237,"box":{"x":577,"y":632,"width":209,"height":11}},{"id":"4311b5e5-e6ae-449d-bdaf-b85ba15dcf26","block_type":"box","text":"decarbonization objectives in","page_number":237,"box":{"x":578,"y":647,"width":204,"height":11}},{"id":"7e02afc0-656b-455b-b0f8-ba9839d680d8","block_type":"box","text":"addition to financial per formance","page_number":237,"box":{"x":578,"y":662,"width":235,"height":11}},{"id":"d6965835-d539-443a-b745-73ba7320a39f","block_type":"box","text":"No suppor t for shareholder","page_number":237,"box":{"x":578,"y":681,"width":192,"height":11}},{"id":"0c45da3d-6d2e-41dd-be95-f7cdbdfc638f","block_type":"box","text":"proposals that seek to direct","page_number":237,"box":{"x":578,"y":696,"width":205,"height":11}},{"id":"4b7b29b6-5048-4bb2-9ab5-5988c64b4a21","block_type":"box","text":"management strategy","page_number":237,"box":{"x":578,"y":712,"width":154,"height":10}},{"id":"7895c29c-00a4-4133-8805-fd3038df2a79","block_type":"box","text":"32","page_number":237,"box":{"x":69,"y":750,"width":9,"height":5}},{"id":"2cc893ba-b9da-4094-8084-0573e9dae133","block_type":"box","text":"There may be some regional variations in voting under these Guidelines in light of company circumstances, policy","page_number":237,"box":{"x":83,"y":750,"width":809,"height":11}},{"id":"4dce29a5-ef76-4330-8e29-7e36d9f13009","block_type":"box","text":"requirements in a par ticular market or a country’s Nationally Defined Contributions, amongst other things.","page_number":237,"box":{"x":69,"y":765,"width":755,"height":11}},{"id":"b3777965-264a-476a-b5d5-ceae2878b60b","block_type":"box","text":"33","page_number":237,"box":{"x":69,"y":783,"width":9,"height":4}},{"id":"fd519162-fb26-4e8e-8f41-376fe7f8e8c2","block_type":"box","text":"The BIS Global Principles, regional voting guidelines, and Engagement Priorities (collectively, the BIS Benchmark","page_number":237,"box":{"x":83,"y":783,"width":798,"height":11}},{"id":"6c38bf8e-0f05-42d9-a818-675cccdf551e","block_type":"box","text":"Policies) set out the core elements of corporate governance that guide our investment stewardship program. The","page_number":237,"box":{"x":69,"y":798,"width":803,"height":11}},{"id":"cebcd4a0-ffcf-4560-8a5e-96d019f3f5e8","block_type":"box","text":"Benchmark Policies apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":237,"box":{"x":70,"y":813,"width":800,"height":11}},{"id":"b8bf43d4-594b-4aa1-9314-76c8ffa0c7cc","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":237,"box":{"x":69,"y":828,"width":648,"height":11}},{"id":"256ca661-8154-43ff-9ec5-8f39fa4ef9ec","block_type":"box","text":"BlackRock Investment Stewardship","page_number":237,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"95b43ad7-eaa2-45d4-b882-d1cfd2a09507","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 11","page_number":237,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"77a97e3e-a0ca-46fa-bf0d-c3dbdb4e56ae","block_type":"box","text":"NM1026U-5982643-237/241","page_number":237,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"dd960b28-d9c7-42ae-811e-d019b9666dfe","block_type":"box","text":"Want to know more?","page_number":238,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"01d79a0c-7358-44de-a959-7079e18036c3","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":238,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"a5a8eb38-05b4-4165-85ed-cf0471536d3f","block_type":"box","text":"This document is provided for information and educational purposes only. Investing involves risk, including the loss of","page_number":238,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"24289c23-b44e-4ee2-a9e8-e5cb847930d0","block_type":"box","text":"principal.","page_number":238,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"64da453f-da4e-4c6f-9eb5-fee619f4bdb2","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":238,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"a52c6481-ba95-42b5-ad0b-84a55171a315","block_type":"box","text":"©2025 BlackRock, Inc. All rights reserved.","page_number":238,"box":{"x":69,"y":883,"width":303,"height":11}},{"id":"c739855a-34dc-40c1-a873-023c26fd50c2","block_type":"box","text":"BLACKROCK","page_number":238,"box":{"x":379,"y":883,"width":92,"height":8}},{"id":"6a5247cf-9838-4a85-be52-35a318f11bc7","block_type":"box","text":"is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":238,"box":{"x":478,"y":882,"width":417,"height":11}},{"id":"f4b96922-9940-430a-b5ba-60744e8be29f","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":238,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"e0aada46-d3ad-4ea4-9169-ace90036b893","block_type":"box","text":"BlackRock Investment Stewardship","page_number":238,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0a7d8399-7f64-4d30-aef3-24557bb0d0b6","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 12","page_number":238,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"a1cfed19-3f60-4989-93a4-1d0c6692b01b","block_type":"box","text":"NM1026U-5982643-238/241","page_number":238,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"3641cd05-8203-4264-b498-17581d106d3c","block_type":"box","text":"[This page intentionally left blank]","page_number":239,"box":{"x":370,"y":489,"width":238,"height":12}},{"id":"0cded34c-a083-44d8-a18b-7c0479b14939","block_type":"box","text":"NM1026U-5982643-239/241","page_number":239,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"d67a7c06-3dae-43dd-bf18-fd487a2f89c8","block_type":"box","text":"[This page intentionally left blank]","page_number":240,"box":{"x":370,"y":489,"width":238,"height":12}},{"id":"c3f6d5da-eb9b-4868-b4cf-2cbeb860fcb8","block_type":"box","text":"NM1026U-5982643-240/241","page_number":240,"box":{"x":764,"y":970,"width":153,"height":7}},{"id":"243e5d2b-fee3-4c91-a6a7-835e0f41ca68","block_type":"box","text":"SAI-SGB-0426","page_number":241,"box":{"x":69,"y":943,"width":99,"height":9}},{"id":"01034ebd-adcd-45e1-848f-fd32db7d197f","block_type":"box","text":"NM1026U-5982643-241/241","page_number":241,"box":{"x":764,"y":970,"width":153,"height":7}}],"unit":"per_mille","page_width":[{"value":594,"pages":[1,2,3,4,5,6,7,8,9]},{"value":612,"pages":[10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32,33,34,35,36,37,38,39,40,41,42,43,44,45,46,47,48,49,50,51,52,53,54,55,56,57,58,59,60,61,62,63,64,65,66,67,68,69,70,71,72,73,74,75,76,77,78,79,80,81,82,83,84,85,86,87,88,89,90,91,92,93,94,95,96,97,98,99,100,101,102,103,104,105,106,107,108,109,110,111,112,113,114,115,116,117,118,119,120,121,122,123,124,125,126,127,128,129,130,131,132,133,134,135,136,137,138,139,140,141,142,143,144,145,146,147,148,149,150,151,152,153,154,155,156,157,158,159,160,161,162,163,164,165,166,167,168,169,170,171,172,173,174,175,176,177,178,179,180,181,182,183,184,185,186,187,188,189,190,191,192,193,194,195,196,197,198,199,200,201,202,203,204,205,206,207,208,209,210,211,212,213,214,215,216,217,218,219,220,221,222,223,224,225,226,227,228,229,230,231,232,233,234,235,236,237,238,239,240,241]}],"page_height":[{"value":774,"pages":[1,2,3,4,5,6,7,8,9]},{"value":792,"pages":[10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32,33,34,35,36,37,38,39,40,41,42,43,44,45,46,47,48,49,50,51,52,53,54,55,56,57,58,59,60,61,62,63,64,65,66,67,68,69,70,71,72,73,74,75,76,77,78,79,80,81,82,83,84,85,86,87,88,89,90,91,92,93,94,95,96,97,98,99,100,101,102,103,104,105,106,107,108,109,110,111,112,113,114,115,116,117,118,119,120,121,122,123,124,125,126,127,128,129,130,131,132,133,134,135,136,137,138,139,140,141,142,143,144,145,146,147,148,149,150,151,152,153,154,155,156,157,158,159,160,161,162,163,164,165,166,167,168,169,170,171,172,173,174,175,176,177,178,179,180,181,182,183,184,185,186,187,188,189,190,191,192,193,194,195,196,197,198,199,200,201,202,203,204,205,206,207,208,209,210,211,212,213,214,215,216,217,218,219,220,221,222,223,224,225,226,227,228,229,230,231,232,233,234,235,236,237,238,239,240,241]}],"attributes":{"chunk_type":"page_range","start_page":1,"end_page":241}},"source":{"type":"Model","id":"github:dorsalhub/pdf-extractor","version":"0.5.0","execution_id":"b38153f9-9173-4a74-aa77-57fe4c0ee5a4"},"user_id":1000002,"date_created":"2026-10-02T12:08:08.636000Z","date_modified":"2026-10-02T12:08:08.636000Z","private":false}